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Thursday 16 May 2013
Kaleb Deakle Guilty of Defrauding Car DealershipRead the Press Release
KALEB DEAKLE, age 24, a resident of Atlanta, Georgia, pled guilty today in federal court before U. S. District Court Judge Jane Triche Milazzo to wire fraud, announced U. S. Attorney Dana J. Boente.
According to court documents, DEAKLE previously resided in New Orleans and gained access to the bank account of the management company where he had leased a condominium. DEAKLE used his computer to negotiate the online sale of a 2012 Land Rover Sport. After a series of emails with the salesman, DEAKLE arrived at Land Rover of New Orleans on January 12, 2012, with a check purportedly from the management company. The check was counterfeit and written out for the total purchase price of $72,148.50. DEAKLE led the dealership to believe that he was employed by Apple, Inc., that the check was legitimate, and thereby was given possession of the vehicle.
The plea agreement reflected that $418,373.96 is the total attempted harm of the scheme, and will be used to calculate his sentence. DEAKLE is to pay full restitution in the amount of $132,093.83 which is the actual harm caused to all the victims of the scheme.
DEAKLE faces a maximum term of imprisonment of twenty years, as well as a fine of $250,000 and three years of supervised release following any term of imprisonment.
Sentencing is set for August 15, 2013 at 10:00 am.
The case was investigated by the Special Agents of the Federal Bureau of Investigation. The prosecution is being handled by Assistant United States Attorney Jon Maestri.
(Download Factual Basis )
Justice Department Reaches Fair Housing Settlementwith Design Professionals in Disability LawsuitRead the Press Release
The Justice Department today announced a settlement with the architects and civil engineers involved in the design and construction of multifamily housing complexes located in Mississippi, Louisiana and Tennessee. The department’s lawsuit alleges that nine multifamily housing complexes with more than 800 units covered by the Fair Housing Act’s accessibility requirements were designed and built without required accessible features. No settlement has been reached with the developer, builder or former owners of these properties, who are alleged to have violated not only the Fair Housing Act, but also the Americans with Disabilities Act.
Under the settlement, which was approved today by the U.S. District Court for the Southern District of Mississippi yesterday evening, nine architects and civil engineers will pay a total of $865,000 to make the complexes for which they were responsible accessible to persons with disabilities. They will also pay $60,000 to compensate aggrieved persons harmed by the inaccessible housing alleged in the government’s lawsuit. The settlement requires these defendants to undergo training on the Fair Housing Act and to provide periodic reports to the government.“Persons with disabilities are entitled to equal access to housing under the Fair Housing Act,” said Eric Halperin, Senior Counsel and Special Counsel for Fair Lending in the Civil Rights Division. “This settlement makes clear that the department takes seriously the accessibility requirements for multifamily housing.”
“The U.S. Attorney’s Office is committed to working with the Civil Rights Division to help ensure that those who design and construct housing units make them accessible to persons with disabilities in compliance with the Fair Housing Act and the Americans with Disabilities Act,” said Gregory K. Davis, U.S. Attorney for the Southern District of Mississippi.
The architects and civil engineers involved in this settlement are Stephen G. Hill, Pickering Firm Inc. a/k/a Pickering Inc.; Larry Singleton d/b/a Singleton Hollomon Architects, H D Lang And Associates Inc.; Richard A. Barron, Architect, Shows, Dearman & Waits Inc.; Canizaro Cawthon Davis f/k/a Canizaro Trigiani Architects; Evans-Graves Engineers Inc. and J.V. Burkes & Associates Inc.
The Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. Title III of the Americans with Disabilities Act requires, among other things, that public accommodations comply with specific requirements related to architectural standards to ensure accessible public and common use areas. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj. gov/crt . Individuals who believe that they may have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected] , or contact the U.S. Department of Housing and Urban Development at 1-800-669-9777.
Jury Convicts Two Harrisburg Men of Cocaine TraffickingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that two Harrisburg men were convicted by a federal jury for conspiracy and distribution of cocaine and crack cocaine.
According to United States Attorney Peter J. Smith, on May 8, following a two-day trial before Senior U.S. District Court Judge William Caldwell in Harrisburg, the jury returned a verdict of guilty on all counts against Dawan Maynard, age 41, and Michael Morris, age 46. A sentencing date has not been scheduled.
Following the verdict, the defendants filed a motion to correct the verdict and interview the jurors relating to the amount of drugs and when they were distributed. On Tuesday, May 14, Judge Caldwell denied the defendant’s motion.
Maynard, Morris and a third man, Corry Matthews, were indicted in October 2012 after a three-year investigation spearheaded by the Drug Enforcement Administration in conjunction with the Dauphin County Drug Task Force.
The evidence showed that the three defendants were involved in a violent drug trafficking enterprise from 2009 through 2012 in Dauphin County which distributed and possessed 500 grams of cocaine and crack cocaine. Maynard and his co-conspirators also used threats of violence and intimidation to acquire cocaine from other area drug traffickers.
Matthews pleaded guilty in January 2013 and is awaiting sentencing.
The case is part of an on-going coordinated effort by multiple law enforcement agencies including the Dauphin County Criminal Investigation Division, Middletown Bureau Police Department, Lower Paxton Township Police Department, the Harrisburg Bureau of Police, and the Pennsylvania State Police. The case is being prosecuted by Assistant United States Attorney Michael Consiglio.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is forty years imprisonment for the defendants and a term of supervised release following imprisonment and a fine. Each defendant also faces a mandatory minimum period of incarceration of five years.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
* * * *Jose Roberto Pacheco-alvarado Indicted for Illegal ReentryRead the Press Release
JOSE ROBERTO PACHECO-ALVARADO, age 23, a citizen of Honduras, was charged in a one-count indictment by a Federal Grand Jury today with illegal reentry by an alien previously removed, announced U.S. Attorney Dana J. Boente.
ccording to the indictment, on or about April 29, 2013, PACHECO, an alien who had previously been removed from the United States, was found in the United States, within the Eastern District of Louisiana, without having obtained consent from the Secretary of the Department of Homeland Security to reapply for admission to the United States.
f convicted, PACHECO, who was convicted of a felony prior to his previous removal, faces a maximum term of imprisonment of ten (10) years, a fine of $250,000 and three (3) years of supervised release following any term of imprisonment.
U. S. Attorney Boente reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by United States Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE). The prosecution is being handled by Special Assistant United States Attorney Robert Weir.
(Download Indictment )
Jose Gonzalez-grana, Pleads Guilty to Making A False Statement Claiming United States Citizenship and Illegal Use of A Social Security NumberRead the Press Release
JOSE GONZALEZ-GRANA, age 35, a citizen of Mexico, pled guilty in federal court today before U. S. District Judge Eldon E. Fallon to a two-count indictment charging him with making a false statement claiming United States citizenship and illegal use of a Social Security number, announced U. S. Attorney Dana Boente.
According to court documents, on May 3, 2012, GONZALEZ, an alien, knowingly made a false statement and claim that he was a United States citizen in order to unlawfully engage in employment in the United States. GONZALEZ has admitted to falsely representing that a Social Security number had been assigned to him by the Commissioner of Social Security with intent to deceive for the purpose of completing an Employment Eligibility Verification Form.
GONZALEZ faces a maximum term of imprisonment of ten (10) years, a fine of $500,000 and three (3) years of supervised release following any term of imprisonment.
This case was investigated by United States Immigration and Customs Enforcement, Homeland Security Investigations (ICE) as part of Operation Safe Neighborhood. The prosecution is being handled by Special Assistant United States Attorney Robert Weir.
(Download Factual Basis )
Jerard David Jo Threefingers 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 15, 2013, before U.S. District Judge Sam E. Haddon, JERARD DAVID JO THREEFINGERS, a 23-year-old resident of Lame Deer and an enrolled member of the Northern Cheyenne Tribe, pled guilty to involuntary manslaughter. Sentencing has been set for September 9, 2013.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On October 2, 2012, at approximately 12:30 p.m., law enforcement was advised of a one vehicle rollover crash on Crazy Head Springs Road near Lame Deer on the Northern Cheyenne Indian Reservation. The caller reported that one passenger was unconscious and another passenger was injured and needed medical help. Law enforcement arrived on the scene and found both a male and female lying on the ground. The female was deceased; the male was alive but injured. Law enforcement took photographs and collected evidence, including an empty Budweiser 30-pack container and 2 unopened cans of Budweiser.
After additional investigation, law enforcement learned that the vehicle, a Ford Explorer, was owned by the deceased female but they were unsure whether she had been driving the vehicle at the time of the crash. There were clear shoe impressions on the brake pedal and the driver's side door panel, but the deceased female was barefoot. Also, the driver's side seat was adjusted for someone much taller than the deceased female.
After some additional investigation, law enforcement learned that THREE FINGERS and another female had been in the car at the time of the crash but had walked away from the scene. Approximately two hours after the crash, THREE FINGERS was located by law enforcement and arrested on tribal charges of intoxication, DUI, and criminal homicide. THREE FINGERS was not interviewed until the next day because of his level of intoxication.
At first, THREE FINGERS identified the deceased female as the driver but, after further questioning, THREE FINGERS admitted that he was the driver. He admitted that he had been drinking prior to the crash and he explained that he hit a bump, lost control of the car, and caused the death of female and the injuries to the other passenger.
A toxicology screen of a blood sample taken from THREE FINGERS about three hours after the crash contained a blood alcohol content of .09.
The passenger that walked away from the scene with THREE FINGERS was interviewed and also admitted that THREE FINGERS was driving the vehicle at the time of the crash.
THREEFINGERS faces possible penalties of 8 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Ijaz Khan Sindhu Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on May 14, 2013, before U.S. District Judge Dana L. Christensen, IJAZ KHAN SINDHU, a 33-year-old resident of Othello Washington, was sentenced to a term of:
Prison: 60 months
Special Assessment: $100
Supervised Release: 4 years
SINDHU was sentenced in connection with his guilty plea to conspiracy to distribute cocaine.
In an Offer of Proof filed by Assistant U.S. Attorney Tara L. Elliott, the government stated it would have proved at trial the following:
On August 23, 2012, a Confidential Informant (CI) was scheduled to purchase cocaine from Shahid Khan and SINDHU in Missoula. Prior to arriving in Montana, Khan and SINDHU were stopped by Idaho police officers and it was later discovered that they had 10 ounces of cocaine in their car.
The CI would have testified that he purchased cocaine from SINDHU on numerous occasions between January and August of 2012, and usually purchased approximately 9 ounces of cocaine at a time. He would have further testified that Khan was with SINDHU on at least 4 or 5 of those occasions and at least once Khan took the money from the CI for the cocaine.
Khan pled guilty to federal charges.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that SINDHU will likely serve all of the time imposed by the court. In the federal system, SINDHU does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
INTERPOL Red Notice facilitates arrest of fugitive sex offender wanted in TexasRead the Press Release
WASHINGTON - INTERPOL Washington, the United States National Central Bureau (USNCB), announced the capture and return of Shilo Watts, 38, a United States citizen and resident of Atascosa County, Texas from Oman to the United States. Watts is wanted in Texas for charges of aggravated sexual assault of a minor, beginning when the minor was three years old and continuing over a prolonged period of time. In 2012, Watts fled the United States, resulting in the issuance of federal felony charge of unlawful flight to avoid prosecution.
In April, INTERPOL Washington expedited the publication of an INTERPOL Red Notice, or international wanted persons notice, for Watts based on the charges in Texas. The Red Notice was disseminated via INTERPOL's network to its 190 member countries around the world. Based on the efforts of investigators from the U.S. Marshals Service (USMS) International Investigations Branch, USMS Western District of Texas, and the U.S. Department of State Bureau of Diplomatic Security Service, Watts' was traced to Oman where the INTERPOL Red Notice provided police with the authority to arrest and lawfully return Watts to the United States on May 15. Watts is currently in the custody of U.S. authorities and faces a maximum sentence of life in prison.
INTERPOL Washington Director Shawn Bray stated, “The capture of Shilo Watts is a great example of partnership between foreign, federal, state, and local law enforcement authorities, including the U.S. Marshals Service, Diplomatic Security Service, Office of International Affairs at the U.S. Department of Justice, and INTERPOL Washington. Through the close coordination of these authorities paired with the use of INTERPOL's international resources, the U.S. Marshals Service and the Diplomatic Security Service located, arrested and returned Watts to face justice in Texas in a matter of days.”
Harvey Pleads Guilty in Two Federal Cases Involving Importation of Ephedrine into the United States and Actions to Introduce Misbranded Drug into CommerceRead the Press Release
Pleas Include 36-Month Sentencing Recommendation;Forfeiture of Assets
SALT LAKE CITY – Kelly Dean Harvey, age 50, of West Jordan, pleaded guilty to charges in two separate indictments in federal court Wednesday. Harvey was charged in one indictment in connection with efforts he made to introduce a misbranded drug into interstate commerce. The second case involved conspiracies to import ephedrine into the United States and launder money.
The plea agreements resolving both cases were executed during a hearing before U.S. Magistrate Judge Evelyn Furse. Each plea agreement includes a recommendation to the court that Harvey be sentenced to 36 months in federal prison and that the sentences run concurrently. As a part of the misbranded drug case, Harvey has agreed to forfeit funds from several financial accounts; an insurance policy; and two Roth IRA accounts.
Sentencing in the cases is set for Aug. 14, 2013, at 2:30 p.m. before U.S. District Judge David Nuffer.
The Ephedrine Case
Harvey pleaded guilty to one count of conspiracy to import and importation of ephedrine and one count of conspiracy to commit money laundering in the ephedrine case.
He admitted that between Aug. 1, 2007, and April 2011, he conspired with co-defendants Mashesh Kumar Bisht and Jorge Eduardo Campos to transport shipments containing ephedrine from India into the United States. He admitted knowing that the shipments he was arranging contained ephedrine and that the importation of ephedrine violated federal laws.He also admitted he worked with Bisht and Campos to transfer funds from the United States to India to pay for the ephedrine and that he conducted financial transactions in a way designed to conceal the nature, location, source, ownership and control of the funds, which were proceeds of an unlawful activity.
One of the co-defendants, Jorge Campos, has pleaded guilty and his sentencing is pending. The second co-defendant, Bisht, is in India and has not been arrested.
This case, which is being prosecuted by the U.S. Attorney’s Office, is being investigated by special agents of the U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations and IRS Criminal Investigation.
The Fraud/Misbranded Drug Case
Harvey admitted to conspiring with two others to manufacture and distribute male sexual enhancement and erectile dysfunction products (“ED drugs”) under false pretenses and with the intent to hide and conceal from the FDA the use of an active ingredient which was subject to FDA regulation. The ED drugs, distributed and marketed by Harvey, a Michigan distributor (an unindicted co-conspirator), and others contained a synthetic ingredient imported from China similar to sildenafil citrate, the active ingredient in Viagra. Harvey purchased the ingredient through a Chinese broker (an unindicted co-conspirator). As distributed and sold, the drugs were misbranded in the following respects: (1) they were identified as “dietary supplements,” which they were not; (2) they were identified as “100 % natural,” which they were not; and (3) they did not identify the active ingredient imported from China on labels or in instructions.Harvey pleaded guilty Wednesday to conspiracy, wire fraud, mail fraud and concealment money laundering in connection with this case and agreed to forfeiture totaling about $512,731.75.
This case is being prosecuted by the U.S. Attorney’s Office and investigated by special agents of FDA’s Office of Criminal Investigations.
Former West Texas Mayor Pleads Guilty to Stealing Money from the City of ToyahRead the Press Release
In Midland, 41–year-old Bartolo Sanchez, former mayor of Toyah, Texas, faces three years in federal prison as well as restitution after pleading guilty this morning to stealing approximately $100,000 from the city based on fraudulent mileage reimbursement claims and personal expenditures announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Mark Morgan.
Appearing before United States District Judge Robert A. Junell this morning, Sanchez pleaded guilty to one count each of wire fraud and aggravated identity theft. By pleading guilty, Sanchez admitted that on May 14, 2009, and unbeknownst to the Toyah City Council, Sanchez signed a $228,132.54 settlement agreement with Chesapeake Operating, Inc. for repairs of surface damage on Toyah streets caused by Chesapeake vehicles. Sanchez deposited that money into a new Toyah bank account that he created.
Furthermore, having signatory authority on all city bank accounts, Sanchez admittedly wrote checks to himself from various city bank accounts, including the one he created from the Chesapeake settlement, based predominantly upon fraudulent mileage reimbursement claims but also for various expenses, most of which were personal in nature and had little or nothing to do with official City business. So as to not raise the suspicions of City Council members as to his scheme, Sanchez forged a required second signature on all of the checks he issued to himself.
From May 2006 until December 2012, Sanchez served as the elected mayor of Toyah, a city located approximately 22 miles west of Pecos, Texas, comprising approximately 1.6 square miles and having a population of about 100 residents.
Sentencing for Sanchez has yet to be scheduled. He remains on bond pending sentencing.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Austin Berry is prosecuting this case on behalf of the Government.
Former Tax Preparers Sent to Federal Prison for Conspiracy to Defraud the U.s. TreasuryRead the Press Release
GRAND RAPIDS, MICHIGAN – Chad Anthony Chertos, 37, of Ada, Michigan, was sentenced to 30 months in prison and Gregory Edward VanDyke, 39, of Newaygo, Michigan, was sentenced to 63 months in prison, for conspiring to defraud the U.S. Treasury, U.S. Attorney Patrick Miles announced today. U.S. District Judge Robert J. Jonker also ordered both defendants to pay more than $240,000 in restitution to the U.S. Treasury.
Chertos and VanDyke were business partners and operated under the names “Integrity Tax” and “The Tax Guys.” Chertos and VanDyke admitted participating in a scheme to obtain payment of income tax refunds from the U.S. Department of the Treasury by preparing and filing false federal income tax returns on behalf of some of their clients. Many of those clients, who were told they could obtain significant tax refunds even if they earned little or no earned income, were solicited in a door-to-door sales pitch. In some cases, even if their clients actually earned income, the defendants ignored their clients’ true income information and prepared tax returns reflecting false and fraudulently-inflated income to obtain a substantial refund. Chertos and VanDyke profited in the scheme by taking substantial fees from the fraudulently-obtained refund checks.
At Van Dyke’s sentencing hearing, Judge Jonker expressed serious concern with VanDyke’s “extraordinary” criminal history and high risk for recidivism, and noted that he has a history of “taking advantage of vulnerable people.” As part of their guilty pleas, both defendants agreed to be permanently barred from preparing or filing, or assisting in the preparing or filing, of any federal tax return or documents for any other person or entity.
U.S. Attorney Miles said, “‘Integrity Tax’ was in name only. These former tax preparers abused vital tax credits for the working poor by fraudulently inflating their clients’ earned income or simply making up non-existent income. They took advantage of their clients and the hard working taxpayers of the United States. They will now pay the price for stealing from the American people.”
Erick Martinez, Special Agent in Charge of the Detroit office of the IRS-Criminal Investigation, joined in the announcement of the sentences and said, “Most return preparers are assiduous in performing their duties and play an important role in our tax system by preparing accurate returns for their clients. These defendants used their business to steal from the government and take advantage of their vulnerable clients. This case spotlights the importance of carefully selecting a tax return preparer.”
IRS-Criminal Investigation in Grand Rapids investigated the case, and Assistant U.S. Attorney Christopher O’Connor prosecuted it.
END
Former State Court IT Administrator Pleads Guilty to Stealing Computer CodeRead the Press Release
BIRMINGHAM – The former computer systems administrator for the Alabama court system pleaded guilty this week in federal court in Montgomery to stealing court system computer code, announced U.S. Attorney Joyce White Vance, U.S. Secret Service Special Agent in Charge Jeffrey Anderson and Alabama Department of Public Safety Director Hugh B. McCall.
DAVID MICHAEL CARROLL, 59, who retired as director of Information Systems for the Alabama Administrative Office of the Courts in June 2007, entered his plea Tuesday before U.S. Magistrate Judge Wallace Capel Jr. to one count of being a state government employee who stole property worth at least $5,000 from a program that received $10,000 or more in federal funds annually. The U.S. Attorney’s Office for the Northern District of Alabama prosecuted the case after the U.S. Attorney’s Office for the Middle District of Alabama recused itself. Carroll’s sentencing has not been set.
Carroll’s co-defendant in the case, JILL HAWTHORNE, 36, a former database administrator for AOC, pleaded guilty earlier this year to aiding and abetting access to a protected law enforcement database. Her sentencing is scheduled June 14.
According to their plea agreements with the government, Carroll and Hawthorne stole computer code from AOC’s county court records database, known as Namemaster, in November 2007 while Carroll was doing contract work for the Madison County Circuit Court. Hawthorne was still employed with AOC at that time. Carroll and Hawthorne transferred the computer code and related information to an Orlando-based computer software development company, CyberBest Technology. Carroll had a working relationship with CyberBest management at the time, according to his plea agreement.
U.S. Secret Service and the Alabama Department of Public Safety investigated the case. Assistant U.S. Attorney David Estes is prosecuting the case.
Former Sports Agent, Benjamin M. Geller, Charged with Wire FraudRead the Press Release
BENJAMIN M. GELLER, age 53, a resident of Austin, Texas, was charged today in a one-count bill of information with wire fraud, announced U. S. Attorney Dana J. Boente.
According to court documents, GELLER was employed as a sports agent for, among others, Frank W. Warren, III, a former NFL player who played with the New Orleans Saints. In or around 1994, according to the Bill of Information, GELLER assisted Warren in obtaining a life insurance policy worth approximately $1,000,000. In the event of Warren’s death, the life insurance proceeds would fund a trust which was established by Warren and GELLER, for the benefit of Warren’s spouse and family. GELLER was named trustee of the trust.
In or around 2002, according to the Bill of Information, Warren died and the funds from the life insurance policy (approximately $1,000,000) were disbursed to a trust in Warren’s name for the benefit of his widowed spouse and family. From in or around 2003 through in or around 2007, according to court documents, GELLER acted as the trustee of the trust and was only permitted to expend funds as the trust provided; he was not permitted to expend trust funds for his own personal use. Despite that prohibition, according to court documents, from in or around 2003 through in or around 2007, GELLER unlawfully defrauded the trust and its beneficiary by spending over $500,000 in trust funds for his own personal use, including for travel, lodging, and entertainment purposes. GELLER also spent some of the $500,000 in trust funds for his own personal businesses, as well as for other miscellaneous purchases.
(Download Bill of Information )
Former Orleans Parish Bond Clerk, Lear Enclarde, Charged with ConspiracyRead the Press Release
LEAR ENCLARDE, age 68, a resident of New Orleans, was charged with Conspiracy to Commit Honest Services Mail Fraud today in a one-count Bill of Information, announced U. S. Attorney Dana J. Boente.
According to court documents, ENCLARDE, who worked in the Orleans Parish Criminal Clerk’s Office from 1973 through 2010, accepted cash and things of value from an un-licensed bail bondsman in exchange for her permitting the unlicensed bondsman to use the name of another, licensed bondsman and to forge that licensed bondsman’s signature on official court documents.
If convicted, LEAR ENCLARDE faces a maximum term of imprisonment of five (5) years, a fine of $250,000 and three (3) years of supervised release following any term of imprisonment.
U. S. Attorney Boente reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation, the New Orleans Police Department, the Orleans Parish District Attorney’s Office, and the United States Attorney’s Office.
The case is being prosecuted by Assistant U. S. Attorney Dan Friel.
(Download Bill of Information )
Former Mayor of Hialeah and Wife Charged with Tax FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Alysa Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s, Homeland Security Investigations (ICE-HSI), Miami Field Office, announced the indictment of Julio Robaina, 48, and his wife, Raiza Villacis Robaina, 39, both of Hialeah, for criminal tax offenses and making false statements to federal agents.
The indictment charges both defendants with one count of conspiring to defraud the United States for the purpose of impeding, impairing, obstructing, and defeating the lawful governmental functions of the Internal Revenue Service in the ascertainment, computation, assessment, and collection of federal income taxes, in violation of 18 U.S.C. § 371 and two counts of making and subscribing false tax returns, in violation of 26 U.S.C. § 7206(1). In addition, the indictment charges Julio Robaina with two counts of making false representations to federal agents, in violation of 18 U.S.C. § 1001(a)(2). The indictment also charges Raiza Villacis Robaina with one count of making a false representation to federal agents, in violation of 18 U.S.C. § 1001(a)(2).
According to the indictment, the manner and means by which the defendants sought to defraud the United States included conducting financial transactions in a manner that would conceal their true nature, concealing information from their tax return preparer, subscribing to false tax returns, and making false representations to federal agents. The indictment alleges that both defendants subscribed to personal income tax returns that falsely understated their total income and that defendant Julio Robaina also subscribed to corporate income tax returns that falsely overstated losses incurred. The indictment specifically alleges that the defendants subscribed to false personal income tax returns for tax years 2005 through 2007 and that Julio Robaina subscribed to false corporate income returns for tax years 2005 through 2007. Julio Robaina served as the mayor of Hialeah from December 2005 until May 2011.
United States Attorney Wifredo A. Ferrer stated, “Our citizenship comes with many privileges, but also with attendant duties and responsibilities. Among those duties, each of us -- regardless of station or position – is required to pay our fair share of taxes. The U.S. Attorney’s Office will continue to enforce our nation’s tax laws so that honest taxpayers are not burdened by others’ failure to meet their tax obligations.”
“The tax system is built on the premise that taxpayers file accurate tax returns,” said Michael J. DePalma, Acting Special Agent in Charge of IRS-Criminal Investigation, Miami Field Office. “No one is above the law and those who willfully violate our nation's tax laws will be held accountable for their actions.”
Alysa D. Erichs, Special Agent in Charge, ICE-HSI, stated, “Elected officials and people in positions of trust are held to an even higher standard than the general public. Investigative efforts by HSI alongside our partners at the IRS to uncover this alleged tax fraud scheme highlight the collaborative effort within federal law enforcement to ensure that no one operates above the law.”
Mr. Ferrer commended the investigative efforts of IRS-CI and ICE-HSI. Mr. Ferrer also thanked the Miami-Dade Police Department and the City of Miami Police Department for their assistance on the investigation. This case is being prosecuted by Assistant U.S. Attorney Richard Gregorie and Assistant U.S. Attorney Michael Davis.
An indictment is only an accusation and the defendant is presumed innocent until proven guilty.
Attachments:
Indictment (PDF)A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Dallas Securities Broker Sentenced in Oklahoma to 84 Months in Prison for Role in Stock Manipulation SchemeRead the Press Release
A former stock broker was sentenced to prison today for his role in an extensive pump-and-dump stock manipulation scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division , U.S. Attorney Danny C. Williams Sr. of the Northern District of Oklahoma, Special Agent in Charge James E. Finch of the FBI’s Oklahoma City Division and Internal Revenue Service-Criminal Investigation (IRS-CI) Chief Richard Weber.
Joshua Wayne Lankford, 39, of Dallas, was sentenced by U.S. District Judge James H. Payne in the Northern District of Oklahoma to serve 84 months in prison. In addition to his prison term, Lankford was ordered to forfeit $250,000. Proceeds from forfeited assets will be used to partially restitute victims.
On Dec. 10, 2012, Lankford pleaded guilty to one count of money laundering.
“Mr. Lankford and his co-conspirators took advantage of innocent investors to the tune of millions of dollars, pumping and dumping penny stocks without regard to anything but their wallets,” said Acting Assistant Attorney General Raman. “As this case shows, stockbrokers and other professionals will be punished if they break the law. Lankford now faces substantial time in prison for his manipulation scheme.”
“The U.S. Attorney’s Office and the Department of Justice are committed to identifying and prosecuting criminals who defraud investors and steal their savings,” said U.S. Attorney Williams. “Pump and dump schemes like these have a devastating financial impact on the victims and undermine public confidence in our nation’s financial system.”
According to court documents and evidence presented at the 2010 trial, Lankford and his co-defendants manipulated the stocks of three companies: Deep Rock Oil & Gas Inc. and Global Beverage Solutions Inc., formerly known as Pacific Peak Investments, both of Tulsa, Okla., and National Storm Management Group Inc. of Glen Ellyn, Ill. The defendants devised and engaged in a scheme to defraud investors known as a “pump and dump,” in which they manipulated publicly traded penny stocks. A penny stock is a common stock that trades for less than $5 per share in the over the counter market, rather than on national exchanges. Lankford and his co-defendants executed the scheme by obtaining a majority of the free-trading shares of stock of the company they intended to manipulate, using fraudulent and deceptive means to acquire the stock and/or remove the trading restrictions on the shares they obtained.
“Stock manipulation and securities fraud are high investigative priorities of the FBI,” said FBI Special Agent in Charge Finch. “This case is the result of a lengthy investigation which involved outstanding cooperation between the FBI, IRS Criminal Investigations, and the SEC. The FBI will continue to work with our law enforcement partners to protect investors and bring those who commit these types of fraud to justice.”
“Using fraud and deception to jeopardize the financial markets and launder funds are not victimless crimes,” said IRS-CI Chief Weber. “Mr. Lankford and his co-defendants thought they latched onto a clever scheme to reap a vast wealth of illegal profits. Today, justice has been served. IRS-CI works in close alliance with our law enforcement partners, and together we will hold those who engage in similar conduct accountable.”
According to court records, Lankford and other conspirators “parked” their shares with various nominees, such as friends, relatives or other entities that they owned and controlled. Subsequently, they engaged in coordinated trading in order to create the appearance of an emerging market for these stocks, after which they conducted massive promotional campaigns in which unsolicited fax and email “blasts” were sent to millions of recipients. According to evidence presented at the 2010 trial, these blasts touted the respective stocks without accurately disclosing who was paying for the promotions, omitted that the defendants intended to sell their shares, and induced unsuspecting legitimate investors to purchase stock in the companies. The defendants and their nominees obtained significant profits by selling large amounts of shares after they had artificially inflated the stock price. For each of the three manipulated stocks, the conspirators’ sell-off caused declines of the stock price and left legitimate investors holding stock of significantly reduced value.
According to Lankford’s guilty plea, he laundered $250,000 in proceeds derived from the stock manipulation scheme.
Evidence presented in the 2010 trial showed that the overall scheme resulted in illegal proceeds of more than $43 million from more than 17,000 investor victims.
Lankford was originally charged in a 24-count indictment unsealed on Feb. 10, 2009, against five defendants. Prior to trial, Lankford fled to Costa Rica, where he remained until he was extradited to the United States in May 2012. James Reskin, 54, of Louisville, Ky., was sentenced today to serve five years of probation for his role in the scheme. Co-defendants George David Gordon and Richard Clark, were convicted by a federal jury in May 2010 for their roles in the scheme. Gordon was sentenced to serve 188 months in prison, and Clark was sentenced to serve 151 months in prison. The fifth defendant, Dean Sheptycki, remains a fugitive.
The case is being prosecuted by Trial Attorneys Andrew Warren and Kevin Muhlendorf of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Catherine Depew for the Northern District of Oklahoma. The case is being investigated by IRS-CI and the FBI. The department wishes to thank the Securities and Exchange Commission, which referred the matter for prosecution. The department also wishes to thank the Criminal Division’s Office of International Affairs, the U.S. Department of State and the U.S. Marshals Service for their work in securing Lankford’s extradition.
This case 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 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Former Bank Executive Sentenced to 37 Months in Federal Prison for Embezzling from Bank of AmericaRead the Press Release
LUBBOCK, Texas — Donnie Wright, 53, of Lubbock, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 37 months in federal prison and ordered to pay $385,356 in restitution following his guilty plea in February 2013 to one count of bank embezzlement by a bank employee. Judge Cummings ordered that Wright surrender to the Bureau of Prisons on June 20, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Wright was employed by Bank of America in Lubbock, as a Branch Manager at the 5144 82nd Street location. The factual resume states that Wright was a member of the Board of Deacons and Trustee at Community Baptist Church (CBC) in Lubbock. Beginning in May 2006 and continuing to January 24, 2010, Wright used his position as a Bank of America employee to embezzle funds owned by CBC and entrusted to the custody and care of Bank of America. He employed a variety of methods to embezzle the funds, including embezzling from CBC’s Certificates of Deposits held at the bank; making cash withdrawals from CBC’s accounts using debit (withdrawal) tickets; and fraudulently drawing checks on CBC’s checking account.
The case was investigated by the FBI and the Lubbock Police Department. Assistant U.S. Attorney Amanda R. Burch prosecuted.
Foreign National Sentenced for Illegal Re-Entry by an Aggravated FelonRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Marcos Montes-Jurado was sentenced on Thursday, May 16, 2013 to 63 months in prison for Illegal Re-entry by an Aggravated Felon.
Montes-Jurado, 53, is a Mexican national who was arrested by Immigration and Customs Enforcement Agents in Belleville, IL, on January 2, 2013. He has been confined since his arrest. Montes-Jurado pled guilty to the federal charge in United States District Court in East St. Louis on February 15, 2013.
According to evidence presented at his change of plea and sentencing hearings, Montes-Jurado has been previously deported from the United States to Mexico four times. He also has five prior felony convictions in the United States, including three prior convictions relating to the distribution of cocaine.
When Montes-Jurado completes his term of imprisonment, he will be placed in civil deportation proceedings.
The investigation which resulted in Montes-Jurado’s arrest and conviction was conducted by ICE agents and the St. Clair County Sheriff’s Office.
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Florida Husband and Wife Indicted for Federal Tax CrimesRead the Press Release
Drs. David Leon Fredrick and Patricia Lynn Hough, of Englewood, Fla., were indicted by a federal grand jury in Fort Myers, Fla., for conspiring to defraud the Internal Revenue Service (IRS) by concealing millions of dollars in assets and income in offshore bank accounts at UBS and other foreign banks, the Department of Justice and IRS announced today.According to the indictment, Fredrick and Hough, married doctors, served on the Board of Directors of two Caribbean-based medical schools – one located on Saba, Netherlands Antilles, and one located on Nevis, West Indies. Fredrick had an ownership interest in the medical school on Nevis until 2007, when both medical schools were sold.
The indictment alleges that Fredrick and Hough conspired with each other and with Beda Singenberger, a citizen and resident of Switzerland who is under indictment in the Southern District of New York, and a UBS banker to defraud the IRS. They carried out the conspiracy by creating and using nominee entities and undeclared bank accounts in their names and the names of the nominee entities at UBS and other foreign banks to conceal assets and income from the IRS, including the sale of real estate associated with the medical school on Saba and shares they owned in the medical school on Nevis. The real estate was sold for more than $33 million, all of which was deposited into one of their undeclared accounts in the name of a nominee entity.
It is further alleged in the indictment that Fredrick and Hough used emails, telephone and in-person meetings to instruct Swiss bankers and asset managers to make investments and transfer funds from their undeclared accounts at UBS. It is alleged that Fredrick and Hough caused funds from the medical schools’ undeclared accounts to be transferred to undeclared accounts in their individual names or in the names of nominee entities. Fredrick and Hough then used the funds in their undeclared accounts to purchase an airplane, two homes in North Carolina and a condominium in Sarasota, Fla. Fredrick also transferred more than $1 million to his relatives.
Fredrick and Hough were also charged with four counts of filing false tax returns for 2005, 2006, 2007 and 2008. The indictment alleges that Fredrick and Hough filed false tax returns which substantially understated their total income and failed, on Schedule B, Parts I and III, to report that they had an interest in or signature or other authority over bank, securities or other financial accounts located in foreign countries. U. S. citizens, resident aliens and legal permanent residents of the United States have an obligation to report to the IRS on the Schedule B of a U.S. Individual Income Tax Return, Form 1040, whether they had a financial interest in, or signature authority over, a financial account in a foreign country in a particular year by checking “Yes” or “No” in the appropriate box and identifying the country where the account was maintained. U. S. citizens and residents also have an obligation to report all income earned from foreign bank accounts on their tax returns.
A trial date has not been scheduled. An indictment is merely an accusation, and every defendant is presumed innocent unless and until proven guilty.
The conspiracy charge carries a maximum potential penalty of five years in prison and a $250,000 fine. The false return charges each carry a maximum potential penalty of three years in prison and a $250,000 fine.
This case is being prosecuted by Trial Attorney Caryn Finley of the Justice Department’s Tax Division and was investigated by IRS – Criminal Investigation.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/taxFederal Grand Jury Indicts Five for Conspiracy, Smuggling and Money Laundering in “Spice” CaseRead the Press Release
BOISE – A federal grand jury in Boise on Tuesday indicted five Boise area residents on four counts of conspiracy to distribute a controlled substance analogue; conspiracy to smuggle goods into the United States; conspiracy to sell and transport drug paraphernalia; and conspiracy to launder money, U.S. Attorney Wendy J. Olson announced. The indictment was unsealed by the court on Wednesday.
The five defendants named in the indictment are:
- Mark A. Ciccarello, 35, of , Meridian, Idaho
- Robert A. Eoff, 30, of Boise, Idaho
- Troy L. Palmer, 43, of Boise, Idaho
- William B. Mabry, 45, of Boise, Idaho
- Holly F. Ciccarello, 39, of Meridian, Idaho
Mark Ciccarello made his initial appearance in federal court yesterday. Eoff, Palmer, Mabry and Holly Ciccarello appeared this morning. Trial for all defendants is set for July 2, 2013, before U.S. District Judge Edward J. Lodge.
The indictment alleges that between March 1, 2011 and July 9, 2012, within the states of Idaho, Alaska, California, Washington, and Wisconsin, the defendants conspired to purchase and import from China chemicals known as JWH018, AM2201, UR-144, and XLR11, which they used to treat innocuous plant matter to make “spice”—a synthetic cannabinoid similar to substances listed in Schedule I of the Controlled Substances Act. The indictment further alleges that the defendants conspired to sell and transport drug paraphernalia for sale, and that they conspired to launder money illegally obtained through their drug, importation and paraphernalia violations. The government is seeking forfeiture of proceeds derived from the alleged criminal activities.
A conviction for conspiracy to distribute a controlled substance analogue, as charged in Count One, is punishable by up to 20 years in prison, a maximum fine of $1 million, and up to three years of supervised release. Conspiracy to smuggle goods into the United States, as charged in Count Two, is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release. Conspiracy to sell and transport drug paraphernalia for sale, as charged in Count Three, is punishable by up to three years in prison, a maximum fine of $250,000, and up to one year of supervised release. Conspiracy to launder money, as charged in Count Four, is punishable by up to 10 years in prison, a maximum fine of $250,000, and up to three years of supervised release.
“This indictment demonstrates that Federal, state and local law enforcement in Idaho will vigorously investigate and prosecute those who unlawfully distribute dangerous synthetic substances in our communities,” said Olson. “Although we don't yet know the full toll that these substances that mimic cannabis have taken on users, we do know that emergency room workers, parents and law enforcement officers have terrifying stories of medically dangerous and sometimes deadly reactions. I commend all of the agencies and prosecutors who spent countless hours bringing the investigation to this point.”
“This investigation has taken out a major player in the synthetic drug industry who was operating coast to coast,” said DEA Special Agent in Charge Matthew G. Barnes. “Criminal drug organizations prey on our youth to line their pockets with millions of dollars in drug proceeds. This emerging industry poses a significant threat to our communities and regardless of how they are marketed, we will continue with our law enforcement partners to aggressively pursue them.”
The indictment is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Drug Enforcement Administration (DEA), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, Boise Police Department, Meridian Police Department, Ada County Sheriff’s Office, Canyon County Sheriff’s Office, and Nampa Police Department. Other federal agencies participating in the OCEDTF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Federal Bureau of Investigation (FBI), and U.S. Marshals Service.
The OCDETF program is a federal, multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ex-Offender Job FairRead the Press Release
Kenyen Brown, U.S. Attorney for the Southern District of Alabama, announces that as part of his Project H.O.P.E. (Helping Offenders Pursue Excellence) initiative, the United States Attorney’s Office for the Southern District of Alabama is collaborating with Bishop State Community College to host an ex-offender only job fair on Wednesday, May 22, 2013 at 1-4:30pm on the Bishop State Baker-Gaines Campus, located at 1365 Martin Luther King, Jr. Avenue in Mobile, AL. Some of the employers participating in the job fair include Austal Shipbuilding, Ingalls Shipbuilding, and Horizon Shipbuilding; all of whom are desiring to fill a range of positions. Prior experience as a welder is not necessarily required as on-the-job training opportunities may be available.
H&S Management and Holdings is another participating employer seeking to fill positions in its various companies including: air duct cleaning, security, tires and treading, commercial supply, janitorial services, and environmental clean up. Successful applicants with any employer would be expected to pass and maintain a clean drug screening record.
Job fair participants will also be able to meet with a range of community service providers including Mobile Works and AIDT. All of these community service providers have valuable resources to share with the ex-offender population. As an example, an ex-offender who is not successful in gaining employment at Wednesday’s job fair may be eligible to receive anywhere from $2,000-$10,000 for vocational training from a Department of Labor grant administered through Mobile Works.
U.S. Attorney Brown said “Just in the Southern District of Alabama alone, in the federal system, between the years of 2008-2010, 328 ex-offenders were revoked for violating the terms of their supervised release and sent back to prison. The cost to the American taxpayer to incarcerate those 328 ex-offenders over that three year period amounted to $9.2 million annually. If these same 328 ex-offenders had been successful on supervised release it would have only cost the American taxpayer roughly $1.3 million. Project H.O.P.E. is a restorative initiative with the aim of giving ex-offenders a chance to become good citizens while simultaneously affording the greater community with the opportunity to enjoy safer neighborhoods in which to live and a lesser tax burden.” U.S. Attorney Brown added, “Statistics compiled by the Administrative Office of the U.S. Courts in Washington D.C., indicate that ex-offender employment is a critical factor in whether recently released federal inmates are successful. Of the 262,000 federal prisoners that were released from federal prison between calendar years 2002-2006, 50% of those who could not secure any employment during the time of their supervised release (generally twoto- five years) committed a new crime or violated the terms of their release and were sent back to prison. However, an astonishing 93% of those who were able to secure employment during the entirety of their supervised release were able to successfully reintegrate back into society and not return to prison.”
For more information about the job fair or Project H.O.P.E go to www.ProjectHopeAlabama.com. Additional Note: U.S. Attorney Brown is available for interviews upon request. Call Tommy Loftis at 251-441-5845 to arrange an interview with U.S. Attorney Brown.
Equality Woman Pleads Guilty to Methamphetamine OffenseRead the Press Release
Jeanette L. Margenthaler, 41, of Equality, Illinois, pled guilty today in United States District Court in Benton to an indictment charging her with one count of unlawfully possessing pseudoephedrine with the intent that it be used to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment, returned by a Federal Grand Jury on February 5, 2013, alleged that the offense occurred in Saline County on January 8th.
Sentencing was set for September 6th at 10:00 a.m. at the United States Courthouse in Benton. At that time, Margenthaler faces up to 20 years’ imprisonment, a $250,000 fine, and 3 years of supervised release to follow her incarceration.
Margenthaler, who has been held without bond since her arrest on the federal charge on February 8th, was again remanded to the custody of the United States Marshal to await sentencing.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force with the assistance of the Gallatin County Sheriff’s Department.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
East Bay Home Building Company Sales Manager Pleads Guilty to Bribing Bank Loan OfficerRead the Press Release
SAN FRANCISCO – Jason Sterlino pleaded guilty in federal court in San Francisco today to paying bribes to a bank official in order to procure residential mortgage loans, United States Attorney Melinda Haag announced.
Sterlino was employed as a sales manager for Discovery Sales, Inc., from 2006 to 2009. He managed new home sales for two new housing developments in Oakland: the Monte Vista Estates and Monte Vista Villas residential developments. He reported directly to the president of Discovery Sales.
In pleading guilty, Sterlino admitted that he facilitated a 2007 agreement between Discovery Sales and a mortgage broker who promised to introduce potential home buyers to Monte Vista Estates in exchange for a referral fee or commission for each buyer who ultimately purchased a home. Over time, this scheme evolved into an agreement to pay the mortgage broker $30,000 for every loan funded by Bank of America that was processed by a particular Bank of America loan officer.
Sterlino admitted that he understood that a portion of the $30,000 referral fee would be paid by the mortgage broker to the Bank of America loan officer as a gift or commission. The purpose of this payment was to procure loans for unqualified buyers through applications that contained false information. Sterlino admitted that he received a portion of the $30,000, typically $5,000 per buyer, as a kickback from the mortgage broker.
Approximately 20 loans were funded by Bank of America in 2007 and 2008 as a result of this corrupt scheme, from which Sterlino personally received approximately $100,000 in cash.
Sterlino, 34, of Hercules, California, was charged in an Information that was filed on April 9, 2013. He was charged with one count of bank bribery in violation of 18 U.S.C. § 215(a). Under the plea agreement, Sterlino pleaded guilty to the offense alleged in the Information and has agreed to cooperate in the FBI’s continuing investigation.
Sterlino is free on bond pending sentencing. The sentencing is scheduled for October 24, 2013, before Judge Jeffrey White in San Francisco. The maximum statutory penalty for a violation of 18 U.S.C. § 215(a) is 30 years in prison and a fine of $1,000,000, plus restitution if ordered by the Court. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by members of the Special Prosecutions Unit of the U.S. Attorney’s office in San Francisco. The prosecution is the result of a three year investigation by the Federal Bureau of Investigation.
Drug Trafficker who hid Kilos of Heroin and Meth in Lakewood Apartment Walls ConvictedRead the Press Release
A drug trafficker who came to the attention of law enforcement after his roommate was shot and killed in November 2012, was convicted today following a three day jury trial, announced U.S. Attorney Jenny A. Durkan. JUAN HIDALGO-MENDOZA, 33, of Lakewood, Washington was convicted of Conspiracy to Distribute Controlled Substances, Possession with Intent to Distribute Controlled Substances, Possession of a Firearm in Furtherance of a Drug Trafficking Offense and being a Felon in Possession of a Firearm/Ammunition. The jury deliberated about 5 hours. HIDALGO-MENDOZA faces a mandatory minimum 15 years to life in prison when sentenced by U.S. District Judge Ronald B. Leighton on August 27, 2013.
According to records filed in the case, emergency crews responded to the Greenwood Apartments on San Francisco Ave. SW, in Lakewood, just before 10 PM on November 12, 2012. They found Jaime Diaz-Solis with a fatal gunshot wound on the sidewalk outside the ground floor apartment he shared with HIDALGO-MENDOZA. According to witnesses, they heard a gunshot and later HIDALGO-MENDOZA dragged Dias-Solis from the apartment yelling for neighbors to call an ambulance. HIDALGO-MENDOZA said he was in his bedroom when the victim was shot by an intruder. On the night of the shooting a search of the apartment revealed two bricks of heroin weighing over 3 kilos, wrapped in duct tape, as well as an AK-47 style assault weapon. Investigators also found a revolver in HIDALGO-MENDOZA’s bedroom closet. Hidden under the seat of HIDALGO-MENDOZA’s truck, investigators found $37,800 in cash. HIDALGO-MENDOZA was arrested in November for the drug conspiracy as well as being a felon in possession of a firearm. He has a prior conviction in California for distributing heroin and is prohibited from possessing firearms.
Two months after HIDALGO-MENDOZA’s arrest, and after the apartment had been rented to a new tenant, law enforcement learned there were additional drugs hidden in the unit. In the walls they found eight bricks of heroin wrapped in duct tape, and two bricks of methamphetamine wrapped in green cellophane. The hidden heroin totaled more than 13 kilos and the methamphetamine was nearly 2 kilos. The wrapping of the heroin was identical to the two bricks seized in November.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved.
The case was prosecuted by Assistant United States Attorneys Sarah Vogel and Steven Masada.
The case was investigated by Lakewood Police Department, the Drug Enforcement Administration (DEA) and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). The Auburn Police Department assisted with the case.Drug Smuggler Sentenced to More Than 10 Years for Hitting Border Patrol Unit with Load VehicleRead the Press Release
McALLEN, Texas – Jorge Eduardo Lopez, 21, of Rio Grande City, has been sentenced to 135 months imprisonment following a conviction for possession with intent to distribute marijuana, United States Attorney Kenneth Magidson announced today.
Lopez pleaded guilty on Jan. 1, 2013, admitting he transported 296 kilograms of marijuana north from the Rio Grande River near La Grulla. As he drove the load vehicle north, Border Patrol agents in marked units attempted to stop him. He traveled at a high rate of speed trying to evade arrest. Eventually, he crashed into one Border Patrol unit, damaging the vehicle and endangering the agent inside.
Today, U.S. District Judge Micaela Alvarez sentenced Lopez to the 135-month term which will be immediately followed by four years of supervised release. Judge Alvarez also ordered that Lopez pay more than $26,000 in restitution for the damaged vehicle and agent’s hospital bill.
Lopez has been in custody where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by Border Patrol, FBI and the Drug Enforcement Administration. Assistant United States Attorney Kristen Rees prosecuted the case.
District Man Sentenced to 50 Months in Prison on Federal Charges After Search Turns up A Semiautomatic Gun and PCP-Defendant Arrested After A Struggle with Police-Read the Press Release
WASHINGTON - Antowaun Lynch, 29, of Washington, D.C., was sentenced today to a 50-month prison term on federal drug and weapons offenses stemming from a search in which he was caught by police with a gun and phencyclidine (PCP), announced U.S. Attorney Ronald C. Machen Jr.
Lynch pled guilty in March 2013 in the U.S. District Court for the District of Columbia to unlawful possession with intent to distribute phencyclidine and unlawful possession of a firearm and ammunition by a person convicted of a crime. He was sentenced by the Honorable Rosemary M. Collyer. After his prison term, he will be placed on three years of supervised release.
According to the government’s evidence, in the early morning hours of Sept. 30, 2012, officers with the Metropolitan Police Department (MPD) were called to the 600 block of Edgewood Street NE to investigate several robberies. Lynch was part of a group of people that the officers encountered. When the officers approached him, Lynch appeared nervous and asked, “Why are you doing this?” Lynch continued to turn his body to the right toward the police car and away from the officers. He put his right hand on his waistband at his side. An officer then put his hand on Lynch’s waistband and noticed a weapon was concealed in the area.
When Lynch attempted to grab the weapon and remove it from his waistband, the officers grabbed onto the gun. Lynch kicked and resisted the officers who were trying to remove the gun and arrest him. After this struggle, the officers were able to retrieve the weapon, a semiautomatic handgun loaded with six rounds of 9mm ammunition in the magazine and one round in the chamber. After his arrest, officers also found a clear glass vial with a black top containing a yellow liquid of approximately one ounce of fluid PCP in Lynch’s pants pocket.
Lynch has a 2005 felony conviction in Virginia.
In announcing the sentence, U.S. Attorney Machen commended the actions of the MPD officers who participated in this arrest and the removal of the handgun and drugs. He also acknowledged the efforts of Assistant U.S. Attorney Emory V. Cole and Special Assistant U.S. Attorney Brittan Heller, who investigated and prosecuted the case.
13-172Desperado's Owners and Others Indicted on Racketeering Conspiracy and Drug ChargesRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that Desperado’s Cabaret owner James “Jim” Panos, 55, of Broussard, La., was indicted on May 8, 2013 in a superseding indictment, along with nine others on racketeering conspiracy and drug charges.
James Panos was charged with four counts in the indictment unsealed yesterday. The charges are the result of an investigation of drug trafficking, drug distribution, prostitution, and other illegal activity that took place at Desperado’s Cabaret in Carencro located on Northeast Evangeline Thruway. Panos was charged with racketeering conspiracy, conspiracy to maintain a drug-involved premises and distribution of controlled substances, possession of a firearm with an obliterated serial number, and possession of a firearm by a prohibited person.
The co-defendants charged with one count of racketeering conspiracy are:
- Jennifer “Nancy” Panos, 47, of Broussard; and
- Dipak Vora, 69, of Baton Rouge, La.
The co-defendants charged with one count of conspiracy to maintain a drug-involved premises and distribution of controlled substances are:
- Jennifer “Nancy” Panos, 47, of Broussard;
- Elias “E.J.” White, 52, of Lafayette;
- Heike Slattery, 41, of Carencro;
- Crystal Sampy, 51, of Lafayette;
- Acquila Shanete “Sexy” Latigue, 27, of Lafayette;
- Gerald Cormier, 43, of Carencro;
- Tanja Clavier, 28, of Lafayette; and
- Lydia “Unique” Gauthreaux, 31, of Crowley.
The racketeering conspiracy charge carries penalties of up to 20 years in prison, a fine of not more than twice the gross profits, and three years supervised release. The conspiracy to maintain a drug involved premises charge carries penalties of up to 20 or 30 years in prison, fines of up to $500,000 to $2 million, and supervised release of three to six years. James Panos faces five years in prison, a $250,000 fine, and three years of supervised release for the possession of a firearm with an obliterated serial number charge. He also faces 10 years in prison, a $250,000 fine, and three years of supervised release for the possession of a firearm by a prohibited person charge. The defendants are scheduled to appear for arraignment on May 29, 2013.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The DEA, the FBI, the U.S. Department of Homeland Security Investigations, Louisiana State Police and Lafayette Metro Narcotics investigated the case. Assistant U.S. Attorneys Myers P. Namie and Daniel J. McCoy prosecuted the case.
Defendants Sentenced to More Than 8 Years in Prison for Assault and Attempted Robbery of Federal Agent at Gun PointRead the Press Release
OAKLAND – Otis Mobley and D’Marce Hutcherson were sentenced today to 114 months and 104 months, respectively, in prison for assaulting and attempting to rob an undercover federal agent with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) in March of 2012, United States Attorney Melinda Haag announced.
Hutcherson pleaded guilty on October 25, 2012, to assaulting a federal officer by pointing a loaded handgun at him. Co-defendant Mobley also pleaded guilty on October 25, 2012, to aiding and abetting Hutcherson and another co-defendant in the assault and attempted robbery of the agent.
“Our law enforcement officers bravely place themselves in harm’s way every day as they protect the citizens of our communities,” said U.S. Attorney Melinda Haag. “This case is a reminder of their selflessness and demonstrates the importance of prosecuting anyone who assaults a member of law enforcement.”
“I am very grateful the agent who was assaulted was not seriously injured,” said Bureau of Alcohol, Tobacco, Firearms and Explosives, Special Agent in Charge Joseph M. Riehl. “The significant prison sentences ordered for these defendants should serve as a warning to anyone who contemplates a similar crime: You will be apprehended, prosecuted and held fully accountable for your conduct.”
Mobley, 24, of Richmond, California, and Hutcherson, 20, of Rodeo, California, were charged by Indictment on April 5, 2012 with one count of Conspiracy to Commit Robbery of Mail, Money, or Other Property of the United States, and Assault on a Federal Officer, in violation of Title 18, United States Code, Section 371; one count of Assault on a Federal Officer with a Deadly Weapon, in violation of Title 18, United States Code, Section 111(b); one count of Robbery of Mail, Money, or Other Property of the United States, in violation of Title 18, United States Code, Section 2114(a); and one count of Using, Carrying, Possessing, and Brandishing a Firearm During a Crime of Violence, in violation of Title 18, United States Code, Section 924(c).
The sentences were handed down by U.S. District Court Judge Yvonne Gonzalez Rogers, and also include a five year period of supervised release. The defendants have been in custody since their arrests on March 28, 2012.
The prosecution is the result of an investigation by the ATF and various local police departments.
Defendant in Denver Case Arrested in Minneapolis Wednesday After Failing to Appear for Initial Appearance in Federal Court Earlier This MonthRead the Press Release
SALT LAKE CITY -- Paul Ernest Sellors, age 69, of Saint Anthony, Minnesota, charged with using a counterfeit seal of a United States Court in an indictment returned by a federal grand jury in Denver, Colorado, was arrested Wednesday in Saint Anthony..
Sellors was taken into custody without incident by members of the FBI’s Minneapolis Joint Terrorism Task Force. A federal magistrate judge in Denver issued a warrant for his arrest on May 1, 2013, after he failed to appear for an initial appearance on the charges in the indictment.
The indictment, filed in April, alleges Sellors and a co-defendant, Ronald Roy Hoddenpyle, age 70, of Colorado Springs, Colorado, used a forged and counterfeit seal of the “United States of America, District Court, District of Minnesota,” to authenticate fraudulent documents, including an order to set trial by jury, an order of custody, and orders to reschedule jury trials. Sellors and Hoddenpyle are charged with four counts of using a counterfeit seal of a United States Court in the indictment.
A five-day jury trial for Hoddenpyle has been set for July 15, 2013, before U.S. District Judge Christine M. Arguello in federal court in Denver. Hoddenpyle is in custody.
Sellors had an initial appearance in Minneapolis Wednesday. A detention and identity hearing has been scheduled for 2:30 p.m. CDT Thursday.
The case against Sellors and Hoddenpyle is being prosecuted in Denver by Assistant U.S. Attorneys from the District of Utah. The case is being investigated by special agents of the FBI and the U.S. Treasury Inspector General for Tax Administration and the U.S. Marshals Service.
Crack Dealer Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. - Dannis Eugene Hardy, 30, of Mobile, Alabama, was sentenced in federal court yesterday for his participation in a conspiracy to distribute crack cocaine. Hardy entered a guilty plea to the charges in January of this year.
Judge Callie V. S. Granade imposed a sentence of 100 months imprisonment, to be followed by a supervised release term of three years. The judge also ordred that the defendant undergo drug abuse treatment during his incarceration and his supervision. No fine was imposed, but the judge ordered that Hardy pay the special manadtory assessment of $100.
The case was investigated by the Mobile Police Department, the Mobile County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Gloria Bedwell.
Convicted Embezzler Sentenced for Lying to Get A Lighter SentenceRead the Press Release
PHILADELPHIA - Katherine M. Harrell, 31, of Fernwood, PA, who lied to a U.S. District Court Judge during a previous sentencing hearing on her embezzlement conviction, was sentenced today to 70 months in prison. Harrell was being sentenced in February 2012 for stealing more than $500,000 from United Savings Bank where she was employed as a branch manager. In asking for leniency, Harrell told the court that her brother had been in a car accident, was in a hospital bed in her living room and would have to go to a nursing home if Harrell could not care for him. The statement was a complete fabrication. Harrell further falsely stated that she did not have any parents and that her young child would be placed in foster care if she could not care for him. Harrell’s parents were alive and Harrell’s mother had agreed, prior to sentencing, that Harrell’s child could continue living with Harrell’s parents if Harrell were sent to jail. Based on the fabrications, U.S. District Court Judge Anita Brody sentenced Harrell to one day in prison, followed by supervised release. It was subsequently discovered that the pleas that Harrell made for leniency were lies.
Harrell pleaded guilty, on December 17, 2012, to corruptly influencing the due administration of justice. In fashioning today’s sentence, U.S. District Court Judge Eduardo Robreno considered the punishment Harrell would have faced had the court known that the defendant was being untruthful at her first sentencing. He also ordered Harrell to undergo substance abuse treatment, pay a $500 fine, and ordered three years of supervised release.
The case was investigated by the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Karen L. Grigsby.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Camden, N.J., Man Allegedly Exchanged More Than $1 Million in Snap/Food Stamp Benefits for CashRead the Press Release
CAMDEN, N.J. – A Camden man who allegedly stole more than $1 million dollars from the U.S. Government through a food stamps scheme was arrested by federal agents this morning, U.S. Attorney Paul J. Fishman announced.
Alexander D. Vargas, 34, was charged in connection with a scheme in which he allegedly purchased Supplemental Nutrition and Assistance Program (SNAP) benefits (formerly known as food stamps) for 50 cents on the dollar at the local grocery store he was managing in Camden. He is charged by Complaint with one count of stealing monies from the United States. Vargas was arrested by agents of the Department of Agriculture, Office of Inspector General, Homeland Security Investigations and the IRS. He is scheduled to appear this afternoon before U.S. Magistrate Judge Joel Schneider in Camden federal court.
According to documents filed in this case:
From February 2012 through December 2012 Vargas managed Eddies Grocery, a small grocery store in Camden that was authorized to accept SNAP benefits. The program is administered by the U.S. Department of Agriculture. Retail food stores that have been approved for participation in SNAP may sell food in exchange for food stamp benefits. They may not, however, exchange food stamp benefits for cash.
Every food stamp recipient receives an Electronic Benefits Transfer (EBT) card, similar to a debit card, with which to make purchases. Every retailer authorized to accept food stamp benefits has an EBT terminal. Food purchases are made by swiping the card at the terminal. After the customer enters a secret Personal Identification Number (PIN), the EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the proposed transaction and informs the retailer whether the transaction should be authorized or denied. If the transaction is authorized, the amount of the purchase is then deducted electronically from the food stamp benefits reserved for the customer, and the amount is credited to the retailer’s designated bank account.
Eddies Grocery designated a bank account at Sovereign Bank to receive the reimbursements for SNAP benefits. Bank records listed Vargas as the manager of Eddies Grocery, and another individual as the owner of the store.Eddies Grocery was first approved to participate in the SNAP program in 2007. In his application to participate in SNAP, the owner estimated that Eddies Grocery would generate receipts of approximately $280,000 annually, or an average of approximately $23,333 per month. The volume of SNAP benefits reimbursement received at Eddies Grocery substantially exceeded those estimates, indicating large scale food stamp fraud. From February 2012 through November 2012 the SNAP redemptions were more than $2.8 million greater than the estimates:
Month / Year
SNAP Redemptions
Reported expected monthly redemptions
Difference
$330,525.81
$23,333.00
$307,192.81
10/2012
$344,134.75
$23,333.00
$320,801.75
09/2012
$338,930.30
$23,333.00
$315,597.30
08/2012
$320,269.62
$23,333.00
$296,936.62
07/2012
$331,932.59
$23,333.00
$308,599.59
06/2012
$315,867.62
$23,333.00
$292,534.62
05/2012
$289,723.15
$23,333.00
$266,390.15
04/2012
$292,545.28
$23,333.00
$269,212.28
03/2012
$293,100.57
$23,333.00
$269,767.57
02/2012
$245,968.65
$23,333.00
$222,635.65
Total:
$3,102,998.34
$233,330.00
$2,869,668.34
In addition to the high volume of SNAP benefits redemptions, law enforcement agents verified the fraudulent exchange of SNAP benefits for cash through the use of a cooperating witness and an undercover law enforcement officer. During a series of five transactions from June 7, 2012, through Oct. 4, 2012, law enforcement agents directed a cooperating witness and an undercover law enforcement officer to go into Eddies Grocery and exchange $1,359.75 in SNAP benefits for $650 cash.
A review of the bank records for the Eddies Grocery account showed total cash withdrawals from the account for the calendar year of 2012 of $3,109,776. In addition, records from February 15, 2012, (when defendant Alexander Vargas was added as an authorized cosigner on the account) through December 2012, showed $2,548,510 in cash withdrawals – of which Vargas’ name was on 40 withdrawals totaling $1,869,266.The charge of theft of United States funds is punishable by a maximum potential penalty of 10 years in prison and a fine of $250,000.
U.S. Attorney Fishman credited special agents of the U.S. Department of Agriculture, Office of Inspector General, under the direction of Special Agent in Charge William G. Squires Jr. in New York; the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew McLees; and IRS – Criminal Investigations, under the direction of Special Agent in Charge Shantelle P. Kitchen, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden.
13-201
Vargas, Alexander Complaint
Brooklyn Man Found Guilty on Firearms ChargeRead the Press Release
Jason L. White, 28, of Venice, was found guilty today by a jury in federal court in East St. Louis of being a previously convicted felon in possession of a firearm, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced. The court set sentencing for August 30, 2013, at which time White may face up to ten years in prison.
The jury found that, between March 23, 2011, and March 31, 2011, in St. Clair County, White knowingly and unlawfully possessed a Glock .40 caliber semi-automatic pistol. White had previously been convicted of a felony, Unlawful Delivery of a Controlled Substance Within 1000 Feet of a Church, in Madison County, Illinois.
The case was investigated by agents and officers of the United States Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, the Illinois State Police Metro-East Forensic Science Laboratory, the Illinois Department of Corrections’ Parole Office, the Brooklyn Police Department, and the East St. Louis Police Department. The case is being prosecuted by Assistant U.S. Attorneys Stephen B. Clark and Liam Coonan.
Boise Man Arrested; Terrorism Charges Filed in Idaho and UtahRead the Press Release
Suspect Allegedly Conspired to Provide Support to Terrorist Organization; Demonstrated the Making and Use of Explosive Devices
BOISE – Fazliddin Kurbanov, 30, was arrested Thursday morning in Boise, Idaho, as part of a federal terrorism investigation. Federal terrorism charges were filed Thursday afternoon in Boise and Salt Lake City, Utah. Kurbanov, an Uzbekistan national, legally present in the United States, was living in Boise at the time of his arrest.
A federal grand jury in Boise returned a three-count indictment charging Kurbanov with one count of conspiracy to provide material support to a designated foreign terrorist organization, one count of conspiracy to provide material support to terrorists and one count of possessing an unregistered destructive device.
A federal grand jury in Salt Lake City returned an indictment charging Kurbanov with one count of distribution of information relating to explosives, destructive devices, and weapons of mass destruction.
The charges were announced by David B. Barlow, U.S. Attorney for the District of Utah; Wendy J. Olson, U.S. Attorney for the District of Idaho; John Carlin, Acting Assistant Attorney General for National Security at the U.S. Department of Justice; and Mary Rook, Special Agent in Charge of the FBI’s Salt Lake City Division.
The arrest was the culmination of an investigation by the FBI’s Salt Lake City Division, which covers Idaho and Utah; and Joint Terrorism Task Forces (JTTF) in Idaho and Utah, which include a number of federal, state, and local law enforcement agencies.
Kurbanov’s activites were closely monitored by federal agents during the investigation and any potential threat posed by Kurbanov has been contained. Kurbanov is scheduled to make an initial appearance in federal court in Boise tomorrow. He will be transferred to Utah at the conclusion of the prosecution in Idaho.
“Today’s arrest and these indictments underscore our commitment to aggressively and thoroughly investigate those who conspire to engage in unlawful terrorist activities,” said Olson. “The thorough and exhaustive work of our JTTF, in partnership with our investigating and prosecuting partners in Utah, Colorado and at the National Security Division, put a stop to this criminal activity and ensured the public’s safety. I commend the men and women at every level of law enforcement, including the FBI, the Department of Homeland Security, Homeland Security Investigations, Ada County and Canyon County Sheriff’s Offices and the Boise City Police Department, who assisted in this effort.”
“One of our highest priorities is disrupting potential acts of terrorism. The coordinated investigation, arrest, and indictments in this case demonstrate the commitment of all involved to do just that. The tireless work of agents, analysts, and law enforcement officers to detect and guard against acts of terrorism has helped ensure the safety of the communities they serve,” Utah U.S. Attorney David B. Barlow said today. “The judicial part of the process will now begin in Idaho and Utah.”
“Today’s arrest underscores the need for continued vigilance against terrorist threats both at home and abroad. I thank the many agents, analysts and prosecutors responsible for this important investigation,” said John Carlin, Acting Assistant Attorney General for National Security.
“As always, the FBI’s top priority is the safety and security of our nation and its citizens. The indictments and arrest are the result of months of exhaustive investigation on the part of agents, analysts, and officers who worked indefatigably to achieve that end,” Mary Rook, Special Agent in Charge of the FBI Salt Lake City Field Division, said.
Idaho Charges
The Idaho indictment alleges in count one that between August 2012 and May 2013, Kurbanov knowingly conspired with unnamed co-conspirators to provide material support and resources to the Islamic Movement of Uzbekistan, a designated foreign terrorist organization. The indictment alleges that the material support and resources included himself, computer software and money.
In count two, the indictment further alleges that the defendant conspired to provide material support and resources, including himself, to terrorists knowing that the material support was to be used in preparation for and in carrying out an offense involving the use of a weapon of mass destruction.
The indictment also alleges in count three that on or about Nov.15, 2012, Kurbanov possessed a destructive device consisting of a combination of parts intended for use in converting any device into a destructive device and from which a destructive device could be readily assembled. According to the indictment, the parts were a hollow hand grenade, hobby fuse, aluminum powder, potassium nitrate and sulfur.
If convicted on the Idaho charges, Kurbanov faces a maximum of 15 years in prison on each of the conspiracy counts and 10 years in prison on the possession of an unregistered destructive device count. The Idaho charges are being prosecuted by Assistant U.S. Attorneys Aaron Lucoff and Heather Patricco and National Security Division Trial Attorney Larry Schneider.
Utah Charges
The one-count indictment filed in Utah alleges that from about Jan. 14, 2013, continuing through Jan. 24, 2013, Kurbanov taught and demonstrated how to make explosive devices and distributed information relating to the manufacture and use of an explosive or weapon of mass destruction with the intent that the teaching, demonstration and information be used for, and in furtherance of, an activity that would constitute a federal crime of violence.
The indictment alleges the defendant showed internet videos, conducted instructional shopping trips, provided written recipes and gave verbal instructions on where to obtain the necessary components to construct and use improvised explosive devices. The indictment also alleges that Kurbanov intended that the videos, written recipes, verbal instructions, and shopping trips be used for training in the construction and use of explosive devices to commit a crime of violence, such as the use of weapons of mass destruction; bombings of a place of public use, a public transportation system or infrastructure facility; or destroying a building in interstate commerce.
If convicted on the Utah charge, Kurbanov faces up to 20 years in federal prison.
The Utah charges are being prosecuted by U.S. Attorney David B. Barlow, Assistant U.S. Attorney John W. Huber and National Security Division Trial Attorney Larry Schneider.
An indictment is not a finding of guilt and is not evidence. Individuals charged in an indictment are presumed innocent unless or until proven guilty beyond a reasonable doubt in a court of law.
(Questions for the FBI Salt Lake City Division can be directed to Public Affairs Specialist Deb Bertram at 801-579-1400 or by e-mail at [email protected]. If you have questions regarding the Idaho case, please call Pam Bearg, PIO in the Idaho U.S. Attorney’s Office, at 208-334-1211. Questions for the Department of Justice’s National Security Division can be directed to 202-514-2007. )
Boise Man Arrested; Terrorism Charges Filed in Idaho and UtahRead the Press Release
Suspect Allegedly Conspired to Provide Support to Terrorist Organization; Demonstrated the Making and Use of Explosive DevicesBOISE, ID -- Fazliddin Kurbanov, 30, was arrested Thursday morning in Boise, Idaho, as part of a federal terrorism investigation. Federal terrorism charges were filed Thursday afternoon in Boise and Salt Lake City, Utah. Kurbanov, an Uzbekistan national, legally present in the United States, was living in Boise at the time of his arrest.
A federal grand jury in Boise returned a three-count indictment charging Kurbanov with one count of conspiracy to provide material support to a designated foreign terrorist organization, one count of conspiracy to provide material support to terrorists and one count of possessing an unregistered destructive device.
A federal grand jury in Salt Lake City returned an indictment charging Kurbanov with one count of distribution of information relating to explosives, destructive devices, and weapons of mass destruction.The charges were announced by David B. Barlow, U.S. Attorney for the District of Utah; Wendy J. Olson, U.S. Attorney for the District of Idaho; John Carlin, Acting Assistant Attorney General for National Security at the U.S. Department of Justice; and Mary Rook, Special Agent in Charge of the FBI’s Salt Lake City Division.
The arrest was the culmination of an investigation by the FBI’s Salt Lake City Division, which covers Idaho and Utah; and Joint Terrorism Task Forces (JTTF) in Idaho and Utah, which include a number of federal, state, and local law enforcement agencies.
Kurbanov’s activites were closely monitored by federal agents during the investigation and any potential threat posed by Kurbanov has been contained. Kurbanov will make an initial appearance in federal court in Boise Friday. He will be transferred to Utah at the conclusion of the prosecution in Idaho.
“Today’s arrest and these indictments underscore our commitment to aggressively and thoroughly investigate those who conspire to engage in unlawful terrorist activities,” said Olson. “The thorough and exhaustive work of our JTTF, in partnership with our investigating and prosecuting partners in Utah, Colorado and at the National Security Division, put a stop to this criminal activity and ensured the public’s safety. I commend the men and women at every level of law enforcement, including the FBI, the Department of Homeland Security, Homeland Security Investigations, Ada County and Canyon County Sheriff’s Offices and the Boise City Police Department, who assisted in this effort.”
“One of our highest priorities is disrupting potential acts of terrorism. The coordinated investigation, arrest, and indictments in this case demonstrate the commitment of all involved to do just that. The tireless work of agents, analysts, and law enforcement officers to detect and guard against acts of terrorism has helped ensure the safety of the communities they serve,” Utah U.S. Attorney David B. Barlow said today. “The judicial part of the process will now begin in Idaho and Utah.”
“Today’s arrest underscores the need for continued vigilance against terrorist threats both at home and abroad. I thank the many agents, analysts and prosecutors responsible for this important investigation,” said John Carlin, Acting Assistant Attorney General for National Security.
“As always, the FBI’s top priority is the safety and security of our nation and its citizens. The indictments and arrest are the result of months of exhaustive investigation on the part of agents, analysts, and officers who worked indefatigably to achieve that end,” Mary Rook, Special Agent in Charge of the FBI Salt Lake City Field Division, said.
Idaho ChargesThe Idaho indictment alleges in count one that between August 2012 and May 2013, Kurbanov knowingly conspired with unnamed co-conspirators to provide material support and resources to the Islamic Movement of Uzbekistan, a designated foreign terrorist organization. The indictment alleges that the material support and resources included himself, computer software and money.
In count two, the indictment further alleges that the defendant conspired to provide material support and resources, including himself, to terrorists knowing that the material support was to be used in preparation for and in carrying out an offense involving the use of a weapon of mass destruction.
The indictment also alleges in count three that on or about Nov.15, 2012, Kurbanov possessed a destructive device consisting of a combination of parts intended for use in converting any device into a destructive device and from which a destructive device could be readily assembled. According to the indictment, the parts were a hollow hand grenade, hobby fuse, aluminum powder, potassium nitrate and sulfur.
If convicted on the Idaho charges, Kurbanov faces a maximum of 15 years in prison on each of the conspiracy counts and 10 years in prison on the possession of an unregistered destructive device count. The Idaho charges are being prosecuted by Assistant U.S. Attorneys Aaron Lucoff and Heather Patricco and National Security Division Trial Attorney Larry Schneider.
Utah Charges
The one-count indictment filed in Utah alleges that from about Jan. 14, 2013, continuing through Jan. 24, 2013, Kurbanov taught and demonstrated how to make explosive devices and distributed information relating to the manufacture and use of an explosive or weapon of mass destruction with the intent that the teaching, demonstration and information be used for, and in furtherance of, an activity that would constitute a federal crime of violence.
The indictment alleges the defendant showed internet videos, conducted instructional shopping trips, provided written recipes and gave verbal instructions on where to obtain the necessary components to construct and use improvised explosive devices. The indictment also alleges that Kurbanov intended that the videos, written recipes, verbal instructions, and shopping trips be used for training in the construction and use of explosive devices to commit a crime of violence, such as the use of weapons of mass destruction; bombings of a place of public use, a public transportation system or infrastructure facility; or destroying a building in interstate commerce.
If convicted on the Utah charge, Kurbanov faces up to 20 years in federal prison.
The Utah charges are being prosecuted by U.S. Attorney David B. Barlow, Assistant U.S. Attorney John W. Huber and National Security Division Trial Attorney Larry Schneider.
An indictment is not a finding of guilt and is not evidence. Individuals charged in an indictment are presumed innocent unless or until proven guilty beyond a reasonable doubt in a court of law.( Questions for the FBI Salt Lake City Division can be directed to Public Affairs Specialist Deb Bertram at 801-579-1400 or by e-mail at [email protected]. If you have questions regarding the Idaho case, please call Pam Bearg, PIO in the Idaho U.S. Attorney’s Office, at 208-334-1211. Questions for the Department of Justice’s National Security Division can be directed to the DOJ Office of Public Affairs at 202-514-2007. )
Boise Man Arrested; Terrorism Charges <br /> Filed in Idaho and UtahRead the Press Release
Fazliddin Kurbanov, 30, was arrested Thursday morning in Boise, Idaho, as part of a federal terrorism investigation. Federal terrorism charges were filed Thursday afternoon in Boise and Salt Lake City, Utah. Kurbanov, an Uzbekistan national, legally present in the United States, was living in Boise at the time of his arrest.
A federal grand jury in Boise returned a three-count indictment charging Kurbanov with one count of conspiracy to provide material support to a designated foreign terrorist organization, one count of conspiracy to provide material support to terrorists and one count of possessing an unregistered destructive device.
A federal grand jury in Salt Lake City returned an indictment charging Kurbanov with one count of distribution of information relating to explosives, destructive devices and weapons of mass destruction.The charges were announced by David B. Barlow, U.S. Attorney for the District of Utah; Wendy J. Olson, U.S. Attorney for the District of Idaho; John Carlin, Acting Assistant Attorney General for National Security at the U.S. Department of Justice; and Mary Rook, Special Agent in Charge of the FBI’s Salt Lake City Division.
The arrest was the culmination of an investigation by the FBI’s Salt Lake City Division, which covers Idaho and Utah; and Joint Terrorism Task Forces (JTTF) in Idaho and Utah, which include a number of federal, state and local law enforcement agencies.
Kurbanov’s activities were closely monitored by federal agents during the investigation and any potential threat posed by Kurbanov has been contained. Kurbanov is scheduled to make his initial appearance in federal court in Boise tomorrow. He will be transferred to Utah at the conclusion of the prosecution in Idaho.
“Today’s arrest and these indictments underscore our commitment to aggressively and thoroughly investigate those who conspire to engage in unlawful terrorist activities,” said U.S. Attorney Olson. “The thorough and exhaustive work of our JTTF, in partnership with our investigating and prosecuting partners in Utah, Colorado and at the National Security Division, put a stop to this criminal activity and ensured the public’s safety. I commend the men and women at every level of law enforcement, including the FBI, the Department of Homeland Security, Homeland Security Investigations, Ada County and Canyon County Sheriff’s Offices and the Boise City Police Department, who assisted in this effort.”
“One of our highest priorities is disrupting potential acts of terrorism. The coordinated investigation, arrest, and indictments in this case demonstrate the commitment of all involved to do just that. The tireless work of agents, analysts and law enforcement officers to detect and guard against acts of terrorism has helped ensure the safety of the communities they serve,” U.S. Attorney Barlow said today. “The judicial part of the process will now begin in Idaho and Utah.”
“Today’s arrest underscores the need for continued vigilance against terrorist threats both at home and abroad. I thank the many agents, analysts and prosecutors responsible for this important investigation,” said Acting Assistant Attorney General Carlin.
“As always, the FBI’s top priority is the safety and security of our nation and its citizens. The indictments and arrest are the result of months of exhaustive investigation on the part of agents, analysts, and officers who worked indefatigably to achieve that end,” said FBI Special Agent in Charge Rook.
Idaho ChargesThe Idaho indictment alleges in count one that between August 2012 and May 2013, Kurbanov knowingly conspired with unnamed co-conspirators to provide material support and resources to the Islamic Movement of Uzbekistan, a designated foreign terrorist organization. The indictment alleges that the material support and resources included himself, computer software and money.
In count two, the indictment further alleges that the defendant conspired to provide material support and resources, including himself, to terrorists knowing that the material support was to be used in preparation for and in carrying out an offense involving the use of a weapon of mass destruction.
The indictment also alleges in count three that on or about Nov.15, 2012, Kurbanov possessed a destructive device consisting of a combination of parts intended for use in converting any device into a destructive device and from which a destructive device could be readily assembled. According to the indictment, the parts were a hollow hand grenade, hobby fuse, aluminum powder, potassium nitrate and sulfur.
If convicted on the Idaho charges, Kurbanov faces a maximum of 15 years in prison on each of the conspiracy counts and 10 years in prison on the possession of an unregistered destructive device count. The Idaho charges are being prosecuted by Assistant U.S. Attorneys Aaron Lucoff and Heather Patricco and National Security Division Trial Attorney Larry Schneider.
Utah Charges
The one-count indictment filed in Utah alleges that from about Jan. 14, 2013, continuing through Jan. 24, 2013, Kurbanov taught and demonstrated how to make explosive devices and distributed information relating to the manufacture and use of an explosive or weapon of mass destruction with the intent that the teaching, demonstration and information be used for, and in furtherance of, an activity that would constitute a federal crime of violence.
The indictment alleges the defendant showed internet videos, conducted instructional shopping trips, provided written recipes and gave verbal instructions on where to obtain the necessary components to construct and use improvised explosive devices. The indictment also alleges that Kurbanov intended that the videos, written recipes, verbal instructions and shopping trips be used for training in the construction and use of explosive devices to commit a crime of violence, such as the use of weapons of mass destruction; bombings of a place of public use, a public transportation system or infrastructure facility; or destroying a building in interstate commerce.
If convicted on the Utah charge, Kurbanov faces up to 20 years in federal prison.
The Utah charges are being prosecuted by U.S. Attorney Barlow, Assistant U.S. Attorney John W. Huber and National Security Division Trial Attorney Larry Schneider.
An indictment is not a finding of guilt and is not evidence. Individuals charged in an indictment are presumed innocent unless or until proven guilty beyond a reasonable doubt in a court of law.(If you have questions regarding the Idaho case, please call Pam Bearg, PIO in the Idaho U.S. Attorney’s Office, at 208-334-1211. For questions on the Utah case, please call Melodie Rydalch, PIO in the Utah U.S. Attorney’s Office at 801-325-3206. Questions for the FBI Salt Lake City Division can be directed to Public Affairs Specialist Deb Bertram at 801-579-1400 or by e-mail at [email protected].)
Related Materials:
Utah Indictment
Idaho IndictmentAnother Sentenced in Marijuana Conspiracy Using Boats to Navigate the Intra-coastal WaterwayRead the Press Release
CORPUS CHRISTI, Texas – Alberto Lopez, aka Alberto Lopez-Reyna, 40, of Roma, has been ordered to prison for nearly seven years following his conviction of conspiracy to possess with the intent to distribute in excess of 100 kilograms of marijuana, United States Attorney Kenneth Magidson announced today. Lopez entered into a written plea agreement Wednesday, Jan. 30, 2013.
Today, Senior U.S. District Judge Janis Graham Jack, who accepted the guilty plea, handed Lopez a term of 80 months in prison. Lopez will also be required to serve a term of five years of supervised release following completion of the prison term.
From November 2010 until his arrest in December 2012, Lopez facilitated the transportation of large amounts of marijuana concealed in the hulls of altered shallow-bottom fishing boats from Port Mansfield to Corpus Christi via the intra-coastal waterway in an effort to circumvent the United States Border Patrol checkpoints in Falfurrias and Sarita.
He admitted his role in supplying various loads of marijuana over the course of the conspiracy and mapping out boat docks in the Corpus Christi area that would be used to retrieve the marijuana-laden vessels for further transportation to Houston. The government detailed how four loads of marijuana were intercepted and a total of 1,600 kilograms of marijuana were seized over the last two years.
Members of the conspiracy who served as drivers include Lombardo Zarate, 50, Rogelio Mendoza, 38, Glen Dial, 57, Luz Ramirez, 26, and Hector Perez-Gonzales, 40, all of whom have previously pleaded guilty before U.S. District Judges in Corpus Christi and have either been sentenced to terms of imprisonment at the Bureau of Prisons. Also sentenced in this case was Michael “Mickey” Pena, who was convicted by a jury in February 2013. He was sentenced last month to 97 months in prison.
Lopez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case is the result of a two-year investigation led by Homeland Security Investigations with the assistance of the Kingsville Narcotics Task force. Assistant United States Attorney Jeffrey D. Preston is prosecuting the case.Alien Pleads Guilty to Immigration ViolationsRead the Press Release
PITTSBURGH, Pa. - An individual found by the United States Citizenship and Immigration Services has pleaded guilty in federal court on charges of false statement under oath in a proceeding or matter related to naturalization and re-entry into the United States after deportation, United States Attorney David J. Hickton announced today.
Ernesto Ivan Lazo-Rodriguez a/k/a Daniel Mancero, 35, formerly from El Salvador, pleaded guilty to three counts before United States District Judge Mark R. Hornak.
Ernesto Ivan Lazo-Rodriguez, an alien, was admitted to the United States as a permanent resident on Dec. 2, 1993. Under the alias of Daniel Mancero, Lazo-Rodriguez was arrested and convicted of aggravated robbery and robbery by the State of Texas. Lazo-Rodriguez, under the alias of Daniel Mancero, was removed from the United States by United States Immigration and Customs Enforcement on June 27, 2000. Ernesto Ivan Lazo-Rodriguez ultimately returned to the United States and lived here pursuant to his permanent resident card. Lazo-Rodriguez subsequently applied for naturalization. During the naturalization process, U.S. Citizenship and Immigration Service learned that Lazo-Rodriguez was Daniel Mancero. At his naturalization interview on July 18, 2012, Lazo-Rodriguez denied ever being previously arrested and denied ever being previously removed or deported.
Judge Hornack scheduled sentencing for Sept. 12, 2013, at 1:30 pm. The law provides for a maximum total sentence of 30 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
Immigration and Customs Enforcement conducted the investigation that led to the prosecution of Ernesto Ivan Lazo-Rodriguez a/k/a Daniel Mancero.
Albuquerque Woman Pleads Guilty to Aggravated Identity Theft ChargesRead the Press Release
ALBUQUERQUE – Shelly Nichols, 42, of Albuquerque, N.M., pleaded guilty this morning to identity theft and aggravated identity theft charges. Nichols’s guilty plea was announced by U.S. Attorney Kenneth J. Gonzales and Richard Ferretti, Resident Agent in Charge of the Albuquerque Resident Office of the U.S. Secret Service.
Nichols, who is now known by her married name Shelly Lopez, and her co-defendant, Donna Gabaldon, 41, of Rio Rancho, N.M., were charged in March 2012, in a 60-count indictment alleging identity theft, passing counterfeit checks with the intent to deceive bank officials, and aggravated identity theft charges.
During this morning’s proceedings, Nichols pleaded guilty to one count of identity theft and two counts of aggravated identity theft. Nichols admitted that from Oct. 2009 through June 2010, she and Gabaldon cashed fake payroll checks at Wal-Mart stores in New Mexico, Arizona, Utah, Colorado and Texas. According to the plea agreement, Nichols created fake drivers’ licenses with false names, addresses and license numbers that had photographs of herself or Gabaldon on them. Nichols also created fake checks made payable to the individuals identified in the fake drivers’ licenses. Nichols and Gabaldon then used the fake drivers’ licenses to cash the fake checks at Wal-Mart stores. When cashing the fake checks, Nichols and Gabaldon used the social security numbers of real people who did not know the women were using their social security numbers and had not given them permission to do so. Gabaldon gave Nichols half of the money that she obtained from cashing the fake checks.
In her plea agreement, Nichols admitted that Gabaldon and she fraudulently received at least $141,233.57 by cashing fake payroll checks at Wal-Mart stores. Nichols and Gabaldon obtained additional cash and other items of value by making purchases using fake personal checks that Nichols printed.
Under the terms of the plea agreement, Nichols will be sentenced to 25 months in federal prison followed by five years of supervised release. Nichols also will have to pay $141,233.57 in restitution to the victims of her criminal conduct. The restitution is to be paid jointly by Nichols and Gabaldon. Nichols also will forfeit a 2009 Hummer, computers and other electronic equipment. Nichols remains on conditions of release pending her sentencing hearing, which has not yet been scheduled.
Gabaldon pleaded guilty on May 25, 2012, to two counts of aggravated identity theft. On Sept. 19, 2012, Gabaldon was sentenced to 24 months in prison followed by a year of supervised release.
“Shelly Nichols was a top five Property Crime Offender in the city of Albuquerque and State of New Mexico when she was arrested in this case,” said Richard Ferretti, Resident Agent in Charge of the Albuquerque Resident Office of the U.S. Secret Service. “Identity theft related investigations are a top priority of the U.S. Secret Service in Albuquerque, and we work closely with our partners in the Albuquerque Financial Crimes Task Force to aggressively investigate, arrest, and prosecute those committing these crimes.”
U.S. Attorney Kenneth J. Gonzales commended the U.S. Secret Service special agents who investigated the case and Assistant U.S. Attorney Cynthia L. Weisman who prosecuted the case.Alabama Man Pleads Guilty for Involvement in a Large Scale Stolen Identity Refund FraudRead the Press Release
Glenn Powell Jr. pleaded guilty today in the Middle District of Alabama to his role in a large scale stolen identity refund fraud, the Justice Department and the Internal Revenue Service (IRS) announced.
On April 17, 2013, a federal grand jury in Montgomery, Ala., indicted Powell on conspiracy and theft of government money charges. According to court documents, Powell opened two bank accounts on which he was the only authorized signer. Between August 2009 and February 2011, at least 49 false federal income tax refunds totaling approximately $95,926 were directed to Powell’s bank accounts. Powell was able to withdraw approximately $46,423.71 in false tax refunds before the IRS stopped him. The overall scheme Powell participated in is alleged to have involved over $500,000 in false refunds.
As a result of his plea, Powell faces a maximum potential sentence of 10 years in prison.
This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Charles M. Edgar Jr., Michael Boteler and Greg Bailey of the Justice Department’s Tax Division are prosecuting the case, with the assistance from the U.S. Attorney’s Office for the Middle District of Alabama and, in particular, Assistant U.S. Attorney Todd Brown.
Wednesday 15 May 2013
Western District of Louisiana Assistant U.S. Attorney Recognized at the Annual National Missing Children's Day Commemoration in Washington, D.C.Read the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley is proud to announce today that the U.S. Justice Department has recognized Assistant United States Attorney (AUSA) John Luke Walker for his exemplary efforts to protect children. AUSA Walker is the recipient of the Child Protection Award at the annual National Missing Children’s Day commemoration held in Washington, D.C. today. The award recognizes the extraordinary efforts of citizens and law enforcement officers who have made a significant investigative or program contribution to protecting children from abuse or victimization. Walker is one of nine citizens and law enforcement officers from Louisiana, Illinois, North Carolina and Washington state to receive the award.
Walker serves as the Western District of Louisiana’s Project Safe Childhood Coordinator. He was the lead prosecutor and a driving force behind Operation Delego, the largest child exploitation case ever prosecuted by the Department. To date, his efforts have resulted in 44 convictions of Operation Delego targets. The defendants included a teacher, police officer and a member of the military. The convictions resulted in sentences ranging from five years to life imprisonment and helped to successfully dismantle a network of individuals whose main objective was the production of hardcore child pornography involving children under the age of 12. Overseas child sex rings and commercial child pornography production rings were also dismantled as part of Operation Delego. As a result of Operation Delego, at least three child victims in the United States were identified.
In addition to his significant contributions during the prosecution of Operation Delego, Walker carries a full caseload of various other cases. Walker also teaches children and parents throughout the Western District of Louisiana about the dangers of online activity through Internet Safety presentations. During 2012, he provided more than 25 presentations and reached approximately 3,000 children and 500 adults.
“AUSA Walker is a committed lawyer, but it is his tireless work and dedication to the children of this community that led to his being named as a recipient of this award,” Finley stated. “Walker is most deserving of this recognition. Still, no one does any of this difficult work alone. He has a wonderful assistant, and outstanding state and local officers and federal agents who assist in these difficult cases. A special thank you goes out to all of them. The Western District of Louisiana is committed to protecting children from exploitation and abuse.”
Ronald Reagan proclaimed May 25, 1983, the first National Missing Children’s Day to remember Etan Patz, a six-year-old boy who disappeared from a New York City street corner on May 25, 1979. Missing Children’s Day honors his memory and the memories of children still missing.
Project Safe Childhood is a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Washington Man Sentenced for Bank RobberyRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that KEITH EDWARD FRAZIER, 25, of Washington, North Carolina, was sentenced yesterday by Senior United States District Judge James C. Fox to 148 months in prison and 5 years of supervised release for his role in the March 7, 2011, robbery of the First South Bank branch located at 907 East Fire Tower Road in Greenville, North Carolina. FRAZIER and his co-defendant, Kevin Frazier, his brother, entered the bank and committed the robbery, at gunpoint, fleeing on foot with $24,058.00. FRAZIER was also ordered to pay $24,058.00 in restitution.
On October 5, 2012 FRAZIER pled guilty to Armed Bank Robbery, in violation of Title 18, United States Code, Sections 2113(a) and (d), and using or carrying a firearm during and in relation to a crime of violence, or possessing a firearm in furtherance of a crime, in violation of Title 18, United States Code, Section 924(c)(1)(A).
Kevin Frazier was previously sentenced to 130 months in prison and full restitution for his role in the robbery.
Investigation of this case was conducted by the Greenville Police Department. Assistant United States Attorney John Bennett is prosecuting the case.
Virginia Beach Man Convicted of Distributing Synthetic MarijuanaRead the Press Release
NORFOLK, Va. – Robert Charles Beatty, 33, of Virginia Beach, Va., pleaded guilty today to charges in connection with distributing synthetic marijuana at a drug-involved premise.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia and Karl C. Colder, Resident Agent in Charge, Drug Enforcement Administration, made the announcement after the plea was accepted by United States District Judge Arenda Wright Allen.
Beatty faces a maximum penalty of 20 years imprisonment when he is sentenced on September 6, 2013.
In a statement of facts filed with the plea agreement, the investigation began in July 2012 with information that the defendant was distributing synthetic marijuana in Virginia Beach. Surveillance was conducted at the residence of the defendant. Within 72 hours of the execution of a search warrant on August 10, 2012, a confidential informant made a purchase of synthetic marijuana from the defendant at his residence on Garrison Place in Virginia Beach, Virginia. On August 10, 2012, members of the VBPD/Special Investigations executed a search warrant at a residence on Garrison Place, Virginia Beach, Virginia. Located inside the residence was a large quantity of synthetic marijuana inside boxes, processed marijuana, pills, a digital scale, paperwork and paraphernalia. Approximately 61 kilogram of synthetic marijuana was seized under the brand/street names of: spice, G-13, Scooby Snacks, G-20, The Original Cloud 9, Mr. Happy, Atomic, California Dreams, Hypnotic, After Life, Guerrilla Warfare, Grape Ape, Down 2 Earth, Fairly Legal, and others. The defendant, after Miranda warnings, confessed to selling synthetic marijuana and prescription pills. The defendant also confessed that he had conspired to ship and to sell synthetic marijuana and split the proceeds with others. The defendant also admitted he maintained a drug-involved premise to manufacture, distribute, and use various controlled substances.
This case was investigated jointly by Drug Enforcement Administration and the Virginia Beach Police Department. Assistant United States Attorney Kevin M. Comstock is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Upper Marlboro Drug Dealer Exiled to over 15 Years in PrisonRead the Press Release
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Donald Hunter, a/k/a Pep, age 48, of Upper Marlboro, Maryland, today to 188 months in prison followed by five years of supervised release for conspiracy to distribute phencyclidine (PCP), cocaine base and heroin; and being a felon in possession of a gun. Judge Titus found that Hunter was an armed career criminal based on four previous drug convictions.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Cathy L. Lanier of the Metropolitan Police Department; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to his guilty plea, beginning in June 2011, Hunter, Wayne Glymph, Samuel Braxton and other conspirators sold PCP, heroin and crack to drug customers in Prince George's County, Maryland, and in the Washington, D.C. metropolitan area. Hunter and others used Braxton’s apartment and a bowling alley in Temple Hills, Maryland to store and distribute narcotics. Hunter prepared, packaged and delivered the drugs to customers on Braxton’s behalf, and collected drug debts from customers. Hunter was responsible for distributing between one and three kilograms of PCP, between 28 and 112 grams of crack, and between 100 and 400 grams of heroin.
On February 23, 2011, law enforcement executed a search warrant at Hunter’s residence and seized 8.5 grams of heroin, plastic baggies with cocaine residue, assorted drug paraphernalia, and a loaded revolver. Hunter had previously been convicted of a felony and was prohibited from possessing a gun.
Samuel Braxton, a/k/a Fats, age 44, of Temple Hills and Wayne Glymph, age 46, of Fort Washington, Maryland, previously pleaded guilty to their participation in the conspiracy, and were sentenced to 27 years and 10 years in prison, respectively. A total of 10 defendants have pleaded guilty to date to charges arising from the drug conspiracy.
United States Attorney Rod J. Rosenstein commended the DEA, FBI, Metropolitan Police Department and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Christen A. Sproule and Steven E. Swaney, who prosecuted this Organized Crime Drug Enforcement Task Force case.
U.S. Attorney and the President and CEO of the National Crime Prevention Council (NCPC)to Speak at DART’s Information and Health Fair Celebrating Older American’s MonthRead the Press Release
NCPC to Unveil its New Public Education Campaign to Protect Seniors from Crime
DALLAS — U.S. Attorney Sarah R. Saldaña of the Northern District of Texas and Ann M. Harkins, the President and CEO of the National Crime Prevention Council, will speak at an information and health fair for seniors that is being held tomorrow, Thursday, May 16, 2013, from 10:00 a.m. to 1:00 p.m. at Eddie Deen’s Ranch on South Lamar Street in Dallas. This is the 19th year that this free event, sponsored by the Dallas Area Rapid Transit (DART), the Dallas Area Agency on Aging and Eddie Deen’s, is being held.
U.S. Attorney Saldaña said, “Protecting older Americans is a top priority that the Department of Justice advances on multiple fronts. Our goal is to empower older persons, and the communities where they reside, with relevant information and resources to ensure that they can live in safe and healthy environments – something we all deserve. I’m thrilled to participate in this year’s event, and I commend DART, the Dallas Area Agency on Aging, Eddie Deen’s and all our community partners who make this information and health fair such a success.”
Ms. Harkins said, “NCPC is pleased to be a part of this event and to share our new public education campaign about protecting senior citizens from financial fraud and physical or emotional abuse. The last thing on the minds of our seniors should be the worry of losing a lifetime of savings or being abused by those they trust. We each play a pivotal role in preventing crimes against seniors and empowering our older Americans to speak up and speak out against fraud and abuse.”
The theme for this year’s Older American’s Month is “Unleash the Power of Age!’ Since 1963, May has been designated as the month to appreciate and celebrate the vitality and aspirations of older adults and their contributions and achievements. At the event, numerous vendors will provide free information and services and fair participants will enjoy free health screenings, materials, entertainment and refreshments provided by various community partners. WFAA anchor Gloria Campos is the event’s special guest, and Dallas County Sheriff Lupe Valdez will join U.S. Attorney Saldaña and Ms. Harkins as other honored guests.
Two Orange County Men Receive Multi-Year Federal Prison Terms for Orchestrating International Plot That Smuggled Rhino HornsRead the Press Release
LOS ANGELES – A father and son team from Orange County who were described by prosecutors as being “at the apex of the rhino horn smuggling pyramid within the United States” each were sentenced today to spend several years in federal prison for their convictions on federal smuggling and money laundering charges.
Vinh Chuong “Jimmy” Kha, 49, of Garden Grove, was sentenced to 42 months in federal prison for overseeing a U.S.-based operation that prosecutors argued played a direct role in a huge increase in rhinoceros poaching in Africa over the past several year.
Felix Kha, 27, the son of Jimmy Kha, also of Garden Grove, was sentenced to 46 months in federal prison for working with alongside his father in the scheme that generated millions of dollars that provided them with profits, as well as money to purchase more contraband rhino horns and pay bribes to customs officials in at least one other nation.
The Khas and Win Lee were sentenced this afternoon by United States District Judge Christina A. Snyder, who said the Khas engaged in “conduct not acceptable by anyone in the world.” Calling the matter a “serious crime against the environment and wildlife,” Judge Snyder said: “There are portions of Africa where the rhino is gone, and Lord knows if they will ever come back.”
In addition to the prison terms, the Khas were each ordered to pay a $10,000 fine. Additionally, Judge Snyder ordered them to pay a cumulative total of more than $185,000 in tax fraud penalties to the Internal Revenue Service. Both Khas, along with the father’s company, were also ordered to pay a total of $800,000 in restitution to the Multinational Species Conservation Fund, a fund managed by the U.S. Fish and Wildlife Service (FWS) to support international efforts to protect and conserve rhinos and other critically endangered species around the world.
“The Khas’ smuggling operation fueled international demand and played a significant role in driving the price of rhino horn to nearly $25,000 per pound,” said United States Attorney André Birotte Jr. “It was that rising value of rhino horn that encouraged ruthless poachers to scour the South African wilderness in search of profits. The Khas played a role in pushing species like the African black rhino to the brink of extinction, which is why we aggressively prosecuted this case and sought lengthy prison terms.”
A third defendant in the case, Win Lee Corporation, which is owned by Jimmy Kha, was sentenced today to five years of probation and ordered to pay a $100,000 fine after it pleaded guilty to charges of smuggling and wildlife trafficking.
The Khas each pleaded guilty last September to five felony counts – conspiracy, smuggling, wildlife trafficking in violation of the Lacey Act, money laundering and tax evasion. The Khas were among 14 individuals charged with federal crimes as a result of “Operation Crash,” an ongoing FWS-led investigation named for the word used to describe a herd of rhinoceros (see, for example: http://www.fws.gov/home/feature/2012/servicecrashesrhinotrafficking1.html).
“On average, a rhino is slaughtered in Africa every 11 hours to feed the black market for their horns,” said FWS Director Dan Ashe. “Criminals in this country who are cashing in on this illegal trade should know that the United States will hold them accountable for their crimes and do everything possible to protect wild populations of rhinos.”
With no known predators other than humans, rhinoceros are a prehistoric species and one of the largest herbivores on earth. All rhinoceros species are protected under United States and international law, and the black rhinoceros is listed as an endangered species. Despite national and international protection efforts dating back nearly 40 years, the demand for rhino horn and black market prices has skyrocketed in the past several years due to the value that some cultures have placed on the horns for ornamental carvings, good luck charms or alleged medicinal purposes. For several decades, rhino poaching was a relatively isolated event in countries like South Africa, where the number of wild rhinos illegally killed there averaged 15 animals per year – at least until 2008 when the Khas began trafficking rhino horns. At the peak of the Khas’ wildlife trafficking conspiracy in 2011, 448 wild rhinos were slaughtered that year for their horns in South Africa alone. Between 2007 and the end of 2011, the poaching of wild South African rhinos increased 3,400 percent.
In sentencing papers filed in United States District court, prosecutors argued that “although they themselves did not shoot the rhinos, defendants Jimmy and Felix Kha
share direct culpability for the recent spike in the price of rhino horn, the increase in Vietnamese and Chinese demand for rhino, and thus the consequent wholesale slaughter of rhinos in the wild in Africa in recent years.”Over the course of about two years – from January 2010 through February 2012 – the Khas conspired with individuals throughout the United States to purchase white and black rhinoceros horn with the full knowledge that these animals were protected by federal law as endangered and threatened species. The horns acquired by the Khas during the course of their conspiracy had a market value of up to $2.5 million.
In their plea agreements, both defendants admitted that they purchased the horns in order to export them overseas to be sold and made into libation cups or used for traditional medicine, made at least one illegal payment to Vietnamese customs officials to ensure clearance of horn shipments to that country, and evaded income taxes owed in 2009 and 2010.
“The Khas engaged in egregious criminal conduct by taking the horns of a species on the brink of extinction and making millions of dollars in the illegal trade in rhino horns,” said Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “The Khas’ sentence sends a strong message that those who violate the law by illegally trading in rhino horns will be held accountable to the fullest extent of the law.”
Operation Crash is an investigation being conducted by the U.S. Fish and Wildlife Service, which has received extensive assistance from the U.S. Postal Inspection Service, IRS - Criminal Investigation, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The case against the Khas was prosecuted by the United States Attorney’s Office for the Central District of California and the Department of Justice’s Environmental Crimes Section.
Release No. 13-070
Two Indicted for Arson and Mail FraudRead the Press Release
Steven Mellides, 51, of Massapequa, New York, and John Fisher, 34, of Mt. Juliet, Tennessee, were
indicted by a federal grand jury on May 15, 2013, and were each charged with four counts relating to their
participation in the intentional burning of a newly constructed single family house in Mt. Juliet, Tenn.,
announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee.The indictment was unsealed yesterday after both defendants were arrested. The indictment charges
each defendant with conspiring to commit, and committing, mail fraud and arson.
“This case illustrates the U.S. Attorney’s Office commitment to prosecuting both violent crime and
white collar crime,” said Acting United States Attorney David Rivera. “We will continue working diligently with our local and state partners to bring to justice those who seek to enrich themselves by putting innocent people in harm’s way.”“These arrests indicate the collaborative effort by federal, state and local authorities” said Jeff Fulton,
Special Agent in Charge, ATF, Nashville Field Division. “Arson is a a crime of violence that places innocent
people’s lives and property in harm’s way.”According to the indictment, Mellides owned a residence in Mt. Juliet, Tennessee, and had multiple
conversations with Fisher and at least one other individual regarding intentionally burning the house. Those conversations culminated with Fisher intentionally setting fire to the house on December 12, 2009. After the house was destroyed by fire, Mellides told State Farm Insurance that he did not know how the fire started and did not ask anyone to set the fire, and caused multiple checks to be mailed from State Farm to pay for the damage to the house.If convicted, the defendants each face up to twenty years in prison and a $250,000 fine, as well as
forfeiture of property derived from or used in violation the offenses charged.The case was investigated by agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives, the
Bomb and Arson Section of the Tennessee Department of Commerce and Insurance, and the Mt. Juliet Police Department. The United States is represented by Assistant U.S. Attorney Scarlett M. Singleton.An indictment is merely an accusation and is not evidence of guilt. Defendants are presumed innocent
unless and until proven guilty in a court of law.Third Sonic Robber SentencedRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever III, sentenced JAMES LEE WOODARD, 24, of Jacksonville, North Carolina, to 60 months imprisonment followed by three years supervised release.
A Federal Grand Jury returned a Criminal Indictment on August 15, 2012 charging WOODARD. On January 22, 2013, WOODARD pled guilty to conspiring to commit robbery of a business engaged in interstate commerce, in violation of Title 18, United States Code, Section 1951.
According to the investigation, on April 11, 2011, the Sonic Drive-In on Lejeune Boulevard in Jacksonville, North Carolina, was robbed as the night manager and co-defendant, Katie Rivera, and another employee were closing the business for the night. Two masked men entered the business through the back door. The robbers proceeded directly to the employee, assaulted him and forced him to the floor. One suspect told Rivera to place all the money in the backpack. After collecting the money, the robbers fled the business. The investigation revealed that Rivera and WOODARD had been dating and she was aware of the plans to rob the restaurant.
Rivera, 25, of Jacksonville, North Carolina, was charged with conspiring to rob a business engaged in interstate commerce, in October, 2011, in a one-count Criminal Indictment. She pled guilty to that charge on February 21, 2012. At her January 20, 2013, sentencing she received 28 months imprisonment followed by three years supervised release.
The other individual involved in the robbery was Mathew Brian Goodale, 24, also of Jacksonville, North Carolina, who was charged in a two-count Criminal Indictment with robbery of a business engaged in interstate commerce, in June, 2012. On August 22, 2012, Goodale pled guilty and was sentenced on January 28, 2013, to 30 months imprisonment followed by three years supervised release. The Court ordered all the defendants to pay restitution in the amount of $4,200.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Police Department. Assistant United States Attorneys Jane J. Jackson prosecuted the case.
The Executive Office for Immigration Review to Open Adelanto Immigration CourtRead the Press Release
FALLS CHURCH, Va. - In order to better serve its stakeholders, including the detainee population, the Executive Office for Immigration Review today announced it will be establishing a full-time presence and opening an immigration court in the Department of Homeland Security contract detention facility in Adelanto, Calif., on May 20, 2013.
Contact information for the new location is as follows:
LOCATION:
Adelanto Detention Facility
10250 Rancho Road, Suite 201A
Adelanto, Calif. 92301HOURS OF OPERATION:
7:30 a.m. to 4 p.m. Monday through FridayTELEPHONE: (760) 246-5404
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Executive Office for Immigration ReviewTennessee Man Indicted on Federal Civil Rights Charge Related to Desecration of Religious ParaphernaliaRead the Press Release
The Justice Department today announced that a federal grand jury in Memphis, Tenn., has returned a one-count indictment charging Justin Shawn Baker, 25, of Jackson, Tenn., with violating the civil rights of students and faculty of the Margolin Hebrew Academy.
The indictment alleges that on or about Jan. 12, 2013, Baker defaced a Torah and religious prayer books which the students and faculty of the Margolin Hebrew Academy were using for a worship service conducted at the Doubletree Hotel in Jackson.
“This kind of vandalism strikes at the heart of religious freedom in this country, and it will not be tolerated,” said Roy L. Austin Jr., Deputy Assistant Attorney General for the Civil Rights Division. “Our nation’s civil rights laws protect all denominations, and those who would strike at the right of peaceful citizens to worship will be held accountable.”
“Freedom to practice one’s religion without prejudice is one of the bedrock principles upon which our nation was founded,” said Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee. “Criminal acts such as those alleged in the indictment represent an attack on the rights that generations of Americans have fought and died to ensure and protect. Our dedicated civil rights unit will continue to protect and defend the rights of our citizens through vigorous enforcement of federal law.”
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty. If convicted, the defendant faces a maximum penalty of 1 year in prison.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorneys Larry Laurenzi and Jonathan Skrmetti of the U.S. Attorney’s Office for the Western District of Tennessee and Trial Attorney Douglas Kern of the Civil Rights Division’s Criminal Section.