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28 June 2013
District Court Enters Permanent Injunction Against New Jersey-Based Pharmacy and Company’s Senior ExecutiveRead the Press Release
U.S. District Court Judge Peter G. Sheridan entered a consent decree of permanent injunction against Med Prep Consulting Inc., a Tinton Falls, N.J., pharmacy licensed by the state of New Jersey, the Justice Department announced today. The permanent injunction was also entered against Gerald R. Tighe, president and owner of Med Prep.
Although operating as a state-licensed pharmacy, until it recently halted production, Med Prep manufactured numerous sterile drug products, including pain medications, anesthesia, operating room drugs and oncology and dialysis drugs and did not receive patient-specific prescriptions. As set forth in the complaint filed by the United States on June 24, the United States Food and Drug Administration (FDA) conducted an inspection of defendants’ facility from March 15, 2013 to April 3, 2013, and documented numerous deviations from current good manufacturing practice requirements for drugs. In addition, Med Prep did not have approved new drug applications or approved abbreviated new drug applications for any of the products it produced.
According to the complaint, the FDA found that the company failed to create and follow appropriate procedures to prevent contamination of drugs which were purported to be sterile. As stated in the complaint, FDA found that the company failed to properly clean and maintain its equipment to ensure the safety and quality of the drugs it manufactured, and that the company failed to conduct adequate investigations of injectable drugs that failed to meet minimum quality specifications. FDA’s recent inspection of the company followed reports that the company had distributed, to a Connecticut hospital, intravenous drug products containing visible contaminants that were confirmed to be mold. Med Prep voluntarily recalled all products in the field and has halted production.
Compliance with current good manufacturing practice requirements helps assure that drugs meet the safety requirements of the law and have the identity and strength and meet the quality and purity characteristics that they purport to or are represented to possess. FDA regulations, which establish minimum current good manufacturing practice requirements for drugs, require manufacturers to control all aspects of the processes and procedures by which drugs are manufactured in order to prevent the production of unsafe and ineffective products.
“Under this resolution, Med Prep cannot manufacture or distribute drugs until it fully complies with the consumer protections set forth in the law,” said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division. “Patients who take injectable drug products contaminated with mold are at risk of major illness or death. This settlement requires Med Prep to clean up its act before its products are allowed to return to market."
The consent decree entered by the district court resolves the complaint by requiring Med Prep to take a wide range of actions to correct its violations and ensure that they do not happen again. The injunction establishes a series of steps which must occur before Med Prep can resume drug manufacturing operations, including the retention of an expert to inspect the company’s manufacturing facility, the development and implementation of a remediation plan, and an inspection by FDA to confirm that the company’s manufacturing processes are fully compliant with the law.
“MedPrep put patients at risk by producing contaminated drugs under unacceptable conditions,” said Melinda K. Plaisier, Acting Associate Commissioner for Regulatory Affairs for the FDA. “The Department of Justice and FDA will continue to work together to protect the health of Americans by taking aggressive enforcement actions to ensure the safety of drugs.”
Acting Assistant Attorney General Delery thanked the FDA for referring this matter to the Department of Justice and the U.S. Attorney’s office in New Jersey for their contributions to the case. Phil Toomajian, Trial Attorney of the Consumer Protection Branch of the Civil Division of the Justice Department and Scott Kaplan, Associate Chief Counsel of the Food and Drug Division, Office of General Counsel, Department of Health and Human Services, brought this case on behalf of the United States.Denver Man Pleads Guilty to Multi-Million Dollar Real Estate SchemeRead the Press Release
DENVER – Roger K. Howard, age 50, of Englewood, Colorado, pled guilty recently before U.S. District Court Judge R. Brooke Jackson to three counts of wire fraud and one count of money laundering, the United States Attorney’s Office, IRS Criminal Investigation and the Federal Bureau of Investigation announced. Howard, who is free on bond, is scheduled to be sentenced by Judge Jackson on August 26, 2013. Howard’s co-defendant, Oai Quang Luong pled guilty to three counts of wire fraud on May 22, 2013 and is scheduled to be sentenced on August 15, 2013.
Howard and Luong were indicted by a federal grand jury in Denver on January 25, 2012. According to the facts contained in the indictment as well as the stipulated facts contained in the plea agreement, in 2006 and 2007, Howard devised and participated in three similar but separate mortgage-fraud schemes. The first and larger scheme involved the sales of twenty-six town homes in a development known as Oliveglen Villas on East Princeton Place, Aurora, Colorado. The second scheme involved the sale of a residence in Castle Rock, Colorado, and the third a house in Denver, Colorado. During the relevant times, Howard operated under the business names of Spring Creek Mortgage Real Estate Services and Open Range Development LLC. Howard controlled bank accounts in the names of both companies. Also at the relevant time, Howard’s co-defendant, Oai Luong, worked for a company that processed mortgage loan applications on behalf of potential home buyers. Both Howard and Luong had offices in the same building in Centennial, Colorado.
By the middle of 2006, the developer of Oliveglen Villas had accumulated an inventory of unsold town homes. At that time, two real estate agents attempted to obtain the right to buy some of the town homes, but they were unsuccessful. The agents then were referred to Howard, who told them that he could arrange for individuals, whom he described as investors, to purchase the properties. In August 2006, Howard asked Luong to obtain the $250,000, and Luong did so, using funds loaned by another individual. Howard persuaded seventeen individuals, his so-called investors, to purchase the town homes.
Howard arranged for the individuals to obtain the mortgage loans, and in doing so he knowingly caused the applications for those mortgages to include false or misleading information or omit material information. Many of the applications overstated borrowers’ monthly incomes, often claiming incomes were more than double the actual amounts. Loan applications also contained false information about borrowers’ assets, usually bank account balances. As part of the mortgage application process, a borrower obtained from his or her bank a form known as a Request for Verification of Deposit (VOD), which verified the balance of an account. In this case, VODs were misleading because Howard and others working at his direction arranged for bank account balances to be inflated temporarily; that is, money was deposited into the accounts and, after the balances were verified and the VODs were completed, the money was withdrawn. All of the town-home sales prices were supported by appraisals, most of which were done by an associate of Howard’s which he told the appraiser the amount he wanted.
For each closing, the closing agent prepared a settlement statement, reflecting that the disbursements of loan proceeds included a payment “from Seller’s Funds at Settlement” to Open Range Development. These payments were the “service fees” mentioned in the contract with the developer; they ranged from $85,700 to $117,204. After the closings, Howard used some of that money to make payments to all but one of the buyers, but those payments were not disclosed to the lenders or their underwriters. Howard for a time wrote checks payable to the borrowers to cover the differences between rental incomes and mortgage payments, but he stopped doing so on April 19, 2007. A few borrowers thereafter used their own money to make mortgage payments, but eventually all of the mortgages went into default and the lenders foreclosed. At that point, there were about twelve different lenders holding the mortgages on the town homes, and they lost approximately $7,609,729.31.
“The real estate fraud perpetrated by the two defendants in this case not only impacts the victims who were caught up in the scheme, it also impacts the mortgage lending system, which ultimately effects everyone who is interested in home ownership,” said U.S. Attorney John Walsh.
"Buyer beware, schemes like this can cause financial havoc for those that are left holding the mortgage, said Stephen Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office. "Those who line their pockets with profits from these schemes should know they will not go undetected and will eventually be held accountable."
“This guilty plea should send a strong message to anyone considering deceiving others with mortgage fraud,” said FBI Denver Special Agent in Charge Thomas Ravenelle. “The FBI will continue to work with our law enforcement partners to protect financial institutions and our economy from those engaged in these types of fraudulent schemes.”
Wire fraud carries a penalty of not more than 20 years in federal prison and a fine of up to $250,000 per count. Money Laundering carries a penalty of not more than 10 years in federal prison and a fine of up to $250,000 per count.
This case was investigated by agents with Internal Revenue Service Criminal Investigation (IRS-CI) and the Federal Bureau of Investigation (FBI).
The case is being prosecuted by Assistant United States Attorney Suneeta Hazra.####
David C. Hollingsworth Sentenced for Assault on Navy BaseRead the Press Release
DAVID C. HOLLINGSWORTH, 49, of New Orleans, Louisiana, was convicted and sentenced today by United States Magistrate Judge Sally Shushan for simple assault on a Department of Defense Police Officer, announced U. S. Attorney Dan J. Boente.
HOLLINGSWORTH, who previously pled guilty in August of 2012 to an Indictment for Receipt of Materials Involving the Sexual Exploitation of Minors and is serving 5 years incarceration, was sentenced to six (6) months of incarceration, to be served consecutively to the sexual exploitation sentence.
On August 9, 2010, HOLLINGSWORTH pointed an assault style rifle at an off duty Department of Defense Police Officer while on Naval Air station/Joint Reserve Base in Belle Chasse, Louisiana. HOLLINSWORTH was disarmed and arrested by Base Security and later charged with assault.
This case was investigated by special agents from the Naval Criminal Investigative Service (NCIS) and prosecuted by Assistant U. S. Attorneys Edward J. Rivera and Brian M. Klebba.
Couple Indicted for Making False Tax ClaimsRead the Press Release
MINNEAPOLIS—A federal indictment unsealed recently charges a couple with defrauding the Internal Revenue Service (“IRS”) by filing false individual income tax returns that claimed refunds to which they were not entitled. The indictment, which was filed under seal on June 18, 2013, charges Mark Allen Garcia and Patricia Ann McQuarry with one count of conspiracy to defraud the United States and two counts of making false claims. The indictment was unsealed following the defendants’ initial appearance in federal court on June 19. Earlier today, both were arraigned.
The indictment alleges that between July 2008 and November 2009, the married defendants conspired to obtain money by filing false U.S. Individual Income Tax Returns for tax years 2007 and 2008. Those allegedly fraudulent returns claimed unentitled refunds and, in one instance, resulted in the IRS paying a false refund of approximately $226,000.
For tax years 2007 and 2008, both defendants filed self-prepared tax returns as “married filing separately.” In her return, McQuarry allegedly stated that she had received more than $127,000 in original issue discount (“OID”) income from several financial institutions, and that the entire amount had been withheld and paid, when in fact, none of the listed financial institutions had paid McQuarry any OID income. By creating false withholdings in the amount of her claimed OID income, McQuarry manufactured a large federal refund.
In addition, both defendants allegedly included false interest income from various financial institutions on their tax returns. In fact, only one of the listed institutions paid the defendants any interest income at all. By creating the false withholdings, both defendants manufactured large tax refunds for tax years 2007 and 2008.
For his part, Garcia allegedly applied for and obtained a “Refund Transfer” from a financial institution in connection with his 2007 tax return. The IRS disbursed Garcia’s federal tax refund, which he allegedly knew was false, to the financial institution, which transferred the refund to his bank account.
As a result of the conspiracy, the defendants allegedly made more than $500,000 in false claims to the IRS.
If convicted, the defendants face a potential maximum penalty of ten years in prison for conspiracy and five years on each count of making a false claim. Any sentence would be determined by a federal district court judge.
This case is the result of an investigation by the IRS-Criminal Investigation. It is being prosecuted by Assistant U.S. Attorney Kimberly A. Svendsen.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial. Per U.S. Department of Justice policy, the U.S. Attorney’s Office is not allowed to provide the age and city of residence for defendants charged in criminal tax cases.
Contrack International Inc. Agrees to Pay $3.5 Million to Resolve False Claims Act AllegationsRead the Press Release
WASHINGTON - Contrack International, Inc., a global design and construction company headquartered in McLean, Virginia, has agreed to pay $3.5 million to settle allegations that it submitted false claims in connection with United States Agency for International Development (USAID) contracts, the Justice Department announced today.
“Misrepresentations during contract negotiations undermine the integrity of the government procurement process,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division. “The Justice Department will take action where contractors misrepresent their qualifications for government contracts and programs.”
“Proper public contracting, government efficiency and government accountability rely on full and complete information from contractors,” said Wendy J. Olson, United States Attorney for the District of Idaho. “Along with our partners at USAID and the Department of Justice’s Commercial Litigation Branch, we will aggressively seek to recover improperly awarded public dollars.”
The settlement concerns USAID-funded contracts for the construction of water and wastewater infrastructure projects in the Arab Republic of Egypt in the 1990s. The bidders for these contracts were required to receive prequalification and, in some cases, establish that they were United States companies. The contracts were ultimately performed by a joint venture partnership between Contrack, Washington Group International, Inc. (WGI), a subsidiary of URS Corporation, and Misr Sons Development S.A.E. (HAS), an Egyptian company. The United States filed suit under the False Claims Act and the Foreign Assistance Act alleging that the joint venture partners evaded the prequalification requirement by concealing the identity of the joint venture partners, which prevented USAID from evaluating their qualifications. As a result, the United States alleges that Contrack and its partners received USAID-funded contracts for which they were ineligible. The settlement resolves only Contrack’s liability. The United States is continuing to pursue its claims against the other defendants in the suit.
This settlement was the result of a coordinated effort by the Department of Justice, Civil Division, Commercial Litigation Branch; the U.S. Attorney’s Office for the District of Idaho; and the USAID Office of Inspector General.
The case is United States v. Washington Group International Inc. f/k/a/ Morrison Knudsen, Corporation, Contrack International, Inc.; and Misr Sons Development S.A.E. a/k/a Hassan Allam Sons, No. 04-555 (N.D. Idaho). The claims resolved by this settlement are allegations only and there has been no determination of liability.
Connecticut Man Sentenced for Claiming to Operate Minority, Service-Disabled Veteran BusinessRead the Press Release
BOSTON – A Woodstock, Conn. man was sentenced yesterday in U.S. District Court in Worcester for conspiring to defraud the Small Business Administration and other government contractors by falsely representing that his business was a minority and service-disabled veteran-owned and operated business.
Brian Bauman, 38, was sentenced by U.S. District Judge Timothy S. Hillman to two years probation with six months to be served in home detention with electronic monitoring, forfeiture of $38,000, and completion of 200 hours of community service, preferably to be performed in a setting working on behalf of veterans. In September 2010, Bauman pleaded guilty to conspiring to commit wire fraud.
Jones and his co-conspirators submitted false statements to the Small Business Administration and other government agencies, in order to get federal government contract awards that were set aside for or preferentially awarded to disadvantaged minority and service-disabled veteran-owned and operated businesses. The submissions falsely represented that their company was owned and managed by a minority and service-disabled veteran who purportedly managed the daily operations of the business
United States Attorney Carmen M. Ortiz; Jeffrey Hughes, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; Luis A. Hernandez, Special Agent in Charge of the U.S. General Services Administration, Office of Inspector General, Office of Investigations; Michael D. Conner, Special Agent in Charge of the U.S. Army Criminal Investigation Command, Hartford Fraud Resident Agency; Daniel J. O’Rourke, Assistant Inspector General, U.S. Small Business Administration, Office of Inspector General, Investigations Division; and Robert L. Panella, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations, New York Regional Office, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Sara Miron Bloom of Ortiz’s office.
Citizen of Guatemala Sentenced to 21 Months in Prison for Illegally Reentering U.S. After DeportationRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that LUSVIN LEONEL OLIVA-AQUINO, 27, a citizen of Guatemala last residing in Stamford, was sentenced yesterday by United States District Judge Robert N. Chatigny in Hartford to 21 months of imprisonment for illegally reentering the United States after he was deported.
According to court documents and statements made in court, OLIVA-AQUINO illegally entered the U.S. sometime prior to April 24, 2008, when he was arrested by the Stamford Police Department on charges of second degree sexual assault and risk of injury to a minor. The charges stemmed from OLIVA-AQUINO’s illegal sexual contact with a 13-year-old girl. He was convicted of both offenses and sentenced to eight years of incarceration, execution suspended, with one year to serve, and a total of 10 years of probation. OLIVA-AQUINO was deported to his native Guatemala in October 2009.
On October 3, 2012, OLIVA-AQUINO was arrested by Stamford Police for motor vehicle offenses.
OLIVA-AQUINO has been detained since his arrest. On February 7, 2013, he pleaded guilty to one count of illegal reentry of a removed alien.
This matter was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations, with the assistance of the Stamford Police Department. The case was prosecuted by Assistant United States Attorney Deborah R. Slater.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Cedar Rapids Safe Streets Task Force Reports Several New Firearms ArrestsRead the Press Release
The Cedar Rapids Safe Streets Task Force continues to make Cedar Rapids safer. United States Attorney Sean R. Berry reported the Task Force’s recent accomplishments at a press conference held at the Cedar Rapids Police Department. Other participants in the press conference included Linn County Attorney Jerry Vander Sanden, Federal Bureau of Investigation Special Agent in Charge Thomas Metz, and Cedar Rapids Police Chief Wayne Jerman.
“The Safe Streets Task Force targets the most dangerous criminal offenders in our area – with a special focus on those who unlawfully use and possess firearms” said Berry. “This focus helps ensure the public’s law enforcement resources are put to their best and most efficient use.”
In June 2009, following a spike in violent crime in the Cedar Rapids area, federal, state and local law enforcement agencies met to share intelligence regarding local gang activity and to assess the need for a formal task force to combat gang, drug, and violent criminal activity. As a result, the Cedar Rapids Safe Streets Task Force was formed in September of 2009. The task force acts as a repository for gang related intelligence in the Cedar Rapids area and coordinates federal, state and local resources to target the worst and most dangerous offenders in the area.
The task force today is led by the Federal Bureau of Investigation and composed of representatives from the Cedar Rapids Police Department and the Sixth Judicial District Department of Correctional Services. Task force personnel work closely with the Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Homeland Security Investigations; United States Marshals Service; Iowa Division of Criminal Investigation; Marion Police Department; Linn County Sheriff’s Office; and Iowa Department of Inspections and Appeals. Task force cases are prosecuted by the United States Attorney’s Office and the Linn County Attorney’s Office.
Resources from the Safe Streets Task Force are available to all law enforcement agencies with related investigations, whether or not those agencies are members of the task force.
According to Special Agent in Charge Thomas Metz of the FBI, “the Cedar Rapids Safe Streets Task Force combines federal law enforcement’s national perspective and resources with local law enforcement’s experience and familiarity in the local community. This formula has worked well in other parts of the country since 1992 and has been an effective means of addressing local gang, drug and violent crime here in Cedar Rapids.”
“I am committed to keeping the streets of Cedar Rapids safe,” said Cedar Rapids Police Chief Wayne Jerman. “One way we will do this is by holding offenders accountable. If someone commits a crime in Cedar Rapids with a weapon, expect to be arrested and prosecuted to the fullest extent. It is through partnerships with the Department of Corrections and the FBI, that we can form the Safe Streets Task Force and arrest those that violate our gun laws. And with prosecution from the United States Attorney’s and Linn County Attorney’s offices, we are able to hold offenders accountable to the fullest extent. The Cedar Rapids Police Department will not tolerate violence, especially violence with the use of a firearm in Cedar Rapids.”
Linn County Attorney Jerry Vander Sanden said, “through a collaborative teamwork approach, the Cedar Rapid's Safe Streets Task Force has demonstrated great success in apprehending and prosecuting violent offenders which makes our community a safer place in which to live. The Linn County Attorney’s Office is grateful to be a part of this effort and we are committed to promoting the objectives of the task force by concentrating our resources on the vigorous prosecution of those who commit crimes of violence.”
In recent weeks, the task force’s work has resulted in the following matters in federal court in Cedar Rapids:
Recent Arrests and Indictments
● On June 27, 2013, Clyde Bell Jr. was arrested on charges of unlawfully possessing a .25 caliber semi-automatic handgun. Bell allegedly possessed the handgun on or about April 23, 2013 following a felony conviction in Cook County, Illinois, for aggravated unlawful use of a weapon, and following a misdemeanor conviction in Linn County, Iowa, for domestic abuse assault causing injury. The case file number is CR 13-34.
● On June 27, 2013, Dustin Whitford was indicted on charges of unlawful possession of a .360 caliber pistol. Whitford allegedly possessed the pistol on or about June 19, 2013, following a felony conviction for possession of drug precursors in Linn County, Iowa. Whitford is in law enforcement custody pending his first appearance in federal court. The case file number is CR 13-50.
● On June 27, 2013, Ramius Hardiman made his first appearance in federal court on charges of unlawfully possessing a 9 millimeter pistol. Hardiman allegedly possessed the pistol on or about May 8, 2013 following a felony conviction in Linn County, Iowa, for involuntary manslaughter. The case file number is CR 13-37.
● On or about June 27, 2013, Demetrius Hardiman was arrested on charges of unlawfully disposing of a 9 millimeter pistol to Ramius Hardiman, knowing and having reasonable cause to believe Ramius Hardiman had been convicted of a crime punishable by imprisonment for a term exceeding one year. Demetrius Hardiman allegedly gave the pistol to Ramius Hardiman on or about May 8, 2013. The case file number is CR 13-37.
● On or about June 27, 2013, Eric Lavell Johnson was arrested on charges of unlawfully possessing two .22 caliber firearms. Johnson allegedly possessed the firearms on or about February 19, 2013 while Johnson was an unlawful user of marijuana. Johnson has also been charged with possession of marijuana with intent to distribute on or about February 19, 2013. The case file number is CR 13-39.
● On or about June 26, 2013, Rhamond Bolden was arrested on charges of unlawfully possessing a 9 millimeter pistol and ammunition. Bolden allegedly possessed the firearm and ammunition on or about April 7, 2013 while Bolden was an unlawful user of marijuana. The case file number is CR 13-40.
● On June 26, 2013, Austin Curtis was indicted on charges of unlawfully possessing a 9 millimeter pistol while being a fugitive from justice. Curtis allegedly possessed the firearm on or about April 22, 2013. Curtis is in law enforcement custody pending his first appearance in federal court. The case file number is CR 13-46.
● On June 26, 2013, Colby Palmer was indicted on charges of unlawfully possessing a .357 magnum revolver, .357 magnum ammunition, and a .22 caliber pistol. Palmer allegedly possessed the firearms and ammunition on or about June 6, 2013 following felony convictions for burglary and interference with the official acts of a correctional officer inflicting bodily injury in Linn County, Iowa. Palmer is in law enforcement custody pending his first appearance in federal court. The case file number is CR 13-41.
● On June 26, 2013, Daevon Evans was indicted on charges of unlawfully possessing a 9 millimeter pistol. Evans allegedly possessed the pistol on or about June 23, 2013 while Evans was an unlawful user of marijuana. Evans is in law enforcement custody pending his first appearance in federal court. The case file number is CR 13-43.
● On June 4, 2013, William Robison was indicted on charges of unlawfully possessing a 9 millimeter handgun with an obliterated serial number and unlawful possession of 9 millimeter ammunition. Robison allegedly possessed the firearm and ammunition on or about April 18, 2013 while Robison was an unlawful user of marijuana. Robison is in law enforcement custody pending his first appearance in federal court. The case file number is CR 13-35.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
Recent Convictions and Sentences
● On June 4, 2013, Kelsey Beckett was sentenced to 30 months’ imprisonment for possession of a firearm with an obliterated serial number. Beckett’s co-defendant, Andre Kase, was sentenced on May 9, 2013, to 71 months’ imprisonment for being a felon in possession of a firearm. Beckett and Kase were arrested together on October 8, 2012, after a neighbor reported they were attempting to break into a house in Cedar Rapids. Both were found to be in possession of loaded firearms. The case file number is CR 12-55.
● On May 21, 2013, Gregory Givens was convicted by a jury of one count of being a felon in possession of a firearm, and one count of possession of crack cocaine with intent to distribute. Evidence at trial showed that, on October 7, 2010, Givens was stopped by a Cedar Rapids police officer for a traffic violation. Givens was found to have a large quantity of marijuana and a box of 9 millimeter ammunition in the car. A December 22, 2010, search warrant at Givens’ residence produced additional marijuana and crack cocaine. Givens had previously been convicted in Cook County, Illinois, of felony possession of cocaine with intent to deliver. The case file number is CR 12-55.
● On May 7, 2013, Kevin Herring was sentenced to 90 months’ imprisonment for being a felon and domestic abuser in possession of a firearm. The sentence followed Herring’s guilty plea for possessing an assault rifle on March 24, 2012. Herring had three prior convictions for domestic abuse assault and one prior conviction for domestic abuse assault causing bodily injury; all in Linn County, Iowa. Herring also had one prior conviction for felony possession of a controlled substance from Cook County, Illinois. The case file number is CR 12-93.
Request for Public Assistance
Law enforcement is also seeking the public’s assistance in locating the following person in connection with federal weapons charges:
● Name: Andre Corbett
Age: 24
Height: 5 ft. 10 in.
Weight: 220 lbs.
Last known address: 11 Glenbrook Dr. SE # 204, Cedar Rapids
[photo at http://www.justice.gov/usao/ian/press/Jun_13/Corbett_Andre.pdf]Anyone who knows the whereabouts of this person is asked to call the Cedar Rapids Police Department at 286-5491, or Linn County Crime Stoppers at 1-800-CS-Crime (272-7463) to report information anonymously. Persons can also provide information via text message by sending a text to CRIMES (274637) and, in the message/subject area, type 5227 along with the information.
Buffalo Men Plead Guilty to Concaine ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Michael Smerka, 56, James Simmons, 38, and Timothy Borkowski, 46, all of Buffalo, New York, pleaded guilty to cocaine trafficking before U.S. Magistrate Judge Leslie G. Foschio. The charge carries a maximum penalty of 20 years in prison, a $1,000,000 fine or both.
According to Assistant U.S. Attorney Michael L. McCabe, who is handling the case, the defendants purchased cocaine at an auto shop on Broadway Street in Sloan. The men then sold the cocaine to a network of customers in the Buffalo and Cheektowaga areas.
The guilty pleas follow a lengthy investigation into drug-trafficking in Cheektowaga and Buffalo's East Side which resulted in the arrests of ten defendants in June 2011. To date, seven defendants have been convicted.
"This is second significant criminal organization convicted in two days," said U.S. Attorney Hochul. "One tried to take over a business, the other a neighborhood. In both cases, law enforcement working with the community removed the threat. Our Office will continue to work with our law enforcement partners to pursue such organizations."
The pleas are the culmination of an investigation by the Federal Bureau of Investigation's Safe Streets Task Force, under the direction of Acting Special Agent in Charge Richard M. Frankel, and the Cheektowaga Police Department, under the direction of Chief David Zack.Brooklyn Woman Convicted of Shipment of $1 Million Worth of Stolen Luxury Vehicles to AfricaRead the Press Release
CAMDEN, N.J. – A federal jury convicted Hope K. Kantete today for her role as the leader of a ring that was responsible for shipping dozens of stolen and carjacked luxury cars and SUVs worth more than $1 million from New Jersey to Africa.
Kantete, 43, of Brooklyn, was convicted of 10 counts of transportation of stolen vehicles in interstate or foreign commerce and a single count of conspiracy to transport stolen vehicles in interstate or foreign commerce. Kantete was convicted after a three-week trial before U.S. District Judge Robert J. Kugler in Camden federal court.
After the jury returned its verdict, Kantete’s bail was revoked in anticipation of her sentencing date on Oct. 3, 2012. As a result of the conviction, Kantete faces up to 15 years in prison.
According to documents filed in this case and the evidence presented at trial:
The stolen car exportation ring was investigated by a multi-agency task force led by the U.S. Department of Homeland Security/Immigration and Customs Enforcement. The investigation revealed that Kantete employed other individuals who were responsible for purchasing stolen and carjacked vehicles from thieves operating in Northern New Jersey and New York. Kantete then had individuals “re-tag,” or place new vehicle identification numbers, on the stolen cars and create fraudulent title documents so that the cars could be shipped out of the country. After the documents were created, Kantete arranged to have the cars loaded onto shipping containers and sent to ports in West Africa. The cars could be re-sold in West Africa for at least twice their retail value in the United States.
U.S. Attorney Fishman credited special agents of HSI, under the leadership of Executive Associate Director James Dinkins and Special Agent in Charge Andrew M. McLees, and the N.J. State Police, under the direction of Superintendent Col. Rick Fuentes, for the investigation leading to today’s arrests. He also thanked U.S. Customs and Border Protection; the Waterfront Commission of New York Harbor; Essex County Prosecutor Carolyn Murray, Middlesex County Prosecutor Andrew Carey, Acting Hudson County Prosecutor Gaetano T. Gregory, and Union County Acting Prosecutor Grace H. Park, the Essex and Hudson County Sheriff’s Departments, the Newark Police Department, the U.S. Coast Guard Investigative Service and the Port Authority of New York and New Jersey for their roles.
The government is represented by Assistant U.S. Attorney José R. Almonte and James M. Donnelly of the U.S. Attorney’s Office Criminal Division in Newark.13-272
Defense counsel: Brian J. Neary Esq., Hackensack, N.J.
Boston Man Sentenced in Armed RobberyRead the Press Release
BOSTON – A Boston man was sentenced today for the armed robbery of a Dorchester Metro PCS retail store in 2011.
Lynch Arthur, 42, was sentenced by U.S. District Judge Denise J. Casper to 19 years in prison, to be followed by five years of supervised release and a $300 special assessment. In March 2013, Arthur pleaded guilty to armed robbery, using and carrying a firearm during a crime of violence, and being a previously convicted felon in possession of a firearm.On Oct. 31, 2011, two men, later identified as Arthur and Ronald E. Brown, entered the Metro-PCS store on Washington Street in the Codman Square section of Dorchester. Brown distracted the store clerk while Arthur walked around the counter, displaying a semi-automatic handgun. After arming themselves with semi-automatic handguns, they forced the clerk into the back storage room and demanded cash. Using a roll of duct tape he was carrying, Arthur tied up the clerk. They removed cash from the register and fled the scene, running on Kenwood Street where they were stopped and questioned. The officers observed articles of clothing, reportedly worn by the subjects, on the sidewalk. After a sweep of the area, officers recovered the loaded firearms, duct tape, and U.S. currency consistent with the amount stolen. The individuals were brought back to the store and positively identified by the clerk.
The co-defendant, Brown, of Boston was convicted following a jury trial on June 3, 2013. He is scheduled to be sentenced in August 2013.
United States Attorney Carmen M. Ortiz, Boston Police Commissioner Edward Davis, and Kenneth J. Croke, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Kenneth G. Shine and Robert E. Richardson of Ortiz's Major Crime Unit.
Avon Man Charged with StructuringRead the Press Release
Larry T. Chuppa was charged today with one count of structuring cash deposits into a financial institution in order to evade bank reporting requirements, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
According to court records, Chuppa, 57, currently resides in Avon, Ohio.
Between December 2011 through March 2012, Chuppa made a series of cash deposits at Fifth Third Bank for the purpose of evading reporting requirements, according to the information.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
This case is being prosecuted by Special Assistant United States Attorney Perry D. Mastrocola, following an investigation by the Internal Revenue Service, Criminal Investigation.
Another Sentenced in Relation to Drug and Murder-for-Hire ConspiracyRead the Press Release
LAREDO, Texas – Calvin Epps, 29, of Hopkins, S.C., has been ordered to prison in a drug conspiracy that has also resulted in the conviction of others in a conspiracy to commit murder-for-hire, United States Attorney Kenneth Magidson announced today. Epps, 29, of Hopkins, S.C., was convicted in November 2012 along with Samuel Walker, 29, of Sharon, Miss., following a seven-day trial. Five others entered guilty pleas in relation to the case - Mario Corley, 41, of Saginaw; Marcus Mickle, 21, Robert Corley, 24, and Kevin Corley, 30, all of Columbia, S.C.; and Shavar Davis, 30, of Denver, Colo.
Today, Senior United Sates District Court Judge George P. Kazen sentenced Epps to respective sentences of 120 and 60 months imprisonment for the conspiracy related to drug trafficking and for possessing a firearm during in and in relation to a drug trafficking crime. The sentences will be served consecutively. He was further ordered to pay a $3,000 fine and he will be on supervised release for five years following his 15-year federal sentence.
According to the evidence presented at trial, the investigation began in January 2011 when Mickle began negotiations with persons whom he thought were members of the Los Zetas Cartel, actually undercover Drug Enforcement Administration (DEA) agents, to purchase marijuana in return for stolen weapons. According to the testimony of DEA agents, the discussions concerned the distribution of marijuana in the Columbia area and how Mickle and Epps told undercover agents about a friend in the military who could provide military weapons to them. The agents were later introduced to Kevin Corley, who identified himself as an active duty officer in the Army responsible for training soldiers. According to the agents’ testimony, Kevin Corley offered to provide tactical training for cartel members and to purchase weapons for the cartel.
Over the next several months, Kevin Corley continued to communicate with undercover agents regarding the services he could provide the cartel as a result of the training, experience and access to information/equipment afforded him as an active duty soldier. He later agreed to bring a team and raid a ranch located at or near Laredo containing 20 kilograms of cocaine and conduct a contract killing there in return for a $50,000 fee and five kilograms of cocaine.
During March 2012, Corley arranged for 300 pounds of marijuana to be delivered to Mario Corley in Charleston, S.C. Kevin Corley, Mickle and Epps also brokered 500 pounds of marijuana and five kilograms of cocaine and discussed the distribution of these narcotics in South Carolina, Texas and Colorado.
According to testimony, Kevin Corley further offered to provide security for Mickle and Epps’ purchase of 500 pounds of marijuana for transport from Texas to South Carolina. On Jan. 14, 2012, Kevin Corley, Epps and Mickle all loaded the marijuana into a tractor trailer and attempted to escort it back to South Carolina. However, the tractor-trailer carrying the load was stopped and seized in La Salle County.
On March 24, 2012, undercover agents met with Epps and Mickle in Columbia at a motel parking lot. During this meeting, Epps and Mickle discussed with the undercover agent the pre-arranged purchase of five kilograms of cocaine and 500 pounds of marijuana for which Epps and Mickle were supposed to provide $50,000 as an initial payment. During the meeting, Epps and Mickle were arrested. Epps had a loaded Raven Arms Model MP-25 handgun in his right cargo pants pocket, while Mickle had a loaded Springfield Armory XD-40 handgun as well as a loaded spare magazine. Epps testified at trial that he was not involved in the purchase of the cocaine, only the marijuana and denied intending to carry the Raven Arms handgun as a part of the drug deal.
Also on March 24, Kevin Corley, Walker and Davis traveled to Laredo and met with undercover agents, at which time they discussed the location of the intended victim of the murder-for-hire, the logistics of performing the contract kill and their respective roles. They were soon thereafter arrested and a fourth suspect was shot and killed. Several firearms and ammunition was located within the vehicle in which they arrived.
Walker and Mickle have also been sentenced to 15 years in this case, while Davis received a sentence of 10 years in federal prison. Robert Corley, who pleaded guilty to the marijuana conspiracy, was previously sentenced to 30 months in prison. The remaining two co-defendants, Kevin Corley and Mario Corley have not yet been scheduled for sentencing.
The investigation leading to the charges was conducted by the DEA and the FBI with the assistance of U.S. Army Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorneys Roberto Ramirez and Jody Young.Another Plea in Panama Unit CaseRead the Press Release
McALLEN, Texas – Another man has been convicted in relation to the investigation involving the now defunct Panama Unit, United States Attorney Kenneth Magidson announced today. Fabian Rodriguez, 28, of Edinburg, pleaded guilty to one count of conspiring to possess with the intent to distribute more than five kilograms of cocaine and more than 500 grams of methamphetamine.
Rodriguez was a former Hidalgo County Sheriff’s deputy who was a member of the former Panama Unit - a drug task force operated by the Hidalgo County Sheriff’s Office.
During 2011 and 2012, Rodriguez utilized his position as a law enforcement officer to traffic narcotics. Rodriguez admitted he used his law enforcement authority to steal narcotics which he and the others sold to local drug dealers.
Rodriguez faces a minimum of 10 years and up to life in prison along with a potential fine up to $10 million. Sentencing has been set for Sept. 10, 2013.
The investigation leading to the charges was conducted by the Drug Enforcement Administration, Homeland Security Investigations, FBI, Homeland Security Investigations - Office of Professional Responsibility and the Texas Department of Public Safety. Assistant United States Attorneys James Sturgis and Anibal Alaniz are prosecuting the case.
27 June 2013
Wilcox County Deputy Sheriff Arrested for Transporting DrugsRead the Press Release
Montgomery, Alabama – Greg Barge, 45 years old, of Camden, Alabama was arrested yesterday for attempting to possess with the intent to distribute cocaine powder, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama.
According to the complaint filed in federal court, on April 10, 2013, May 7, 2013 and June 26, 2013, Barge transported a package that contained what he believed to be multi-kilograms of cocaine powder from Montgomery, Alabama to Camden, Alabama. The package actually contained a substance that appeared to be cocaine, but was not cocaine. On each of those dates, Barge obtained the supposed kilograms of cocaine in Montgomery and transported them to Camden using his law enforcement vehicle and dressed in his sheriff’s deputy uniform. Barge was paid $800 on April 10, 2013 and $1200 on May 7, 2013. On June 26, 2013, Barge was arrested in Camden after transporting the kilograms of fake cocaine from Montgomery to Camden.
An arrest warrant and complaint merely allege that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Barge faces a minimum sentence of 5 years in prison. He is also subject to fines and a period of supervised release if convicted.
The case was investigated by the Federal Bureau of Investigation, with assistance from the Alabama Alcoholic Beverage Control Board and the Alabama Department of Public Safety. Assistant United States Attorney Clark Morris is prosecuting the case.
Washington State Man Pleads Guilty to Federal Hate Crime in Attack on Sikh ManRead the Press Release
The Department of Justice today announced Jamie Larson, 49, pleaded guilty in U.S. District Court in Seattle to a federal hate crime relating to a racially-motivated assault of a 50-year-old Sikh man who works as a taxi cab driver.
Jamie Larson pleaded guilty to one count of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act that was enacted in October 2009. The indictment alleges that on Oct. 17, 2012, Larson assaulted the victim, who is from India, based upon the victim’s actual and perceived race, color and national origin, which included Middle Eastern and Arab descent. The defendant was arrested at the scene of the attack after a witness called 911.
According to the documents filed in court, the victim was called to drive Larson to an address in Federal Way, Wash. When the taxi arrived at the destination, the driver got out of the taxi and Larson got out and attacked the driver, grabbing his beard, pulling him to the ground, punching and stomping on his head and body. Larson uttered racial slurs and insults about the vicitm’s perceived ancestry during the attack. The victim suffered damage to his back, shoulder and kidney. He was hospitalized for more than a week and has undergone lengthy physical therapy.
“This case is a testament to the Justice Department’s dedication to vigorously investigate and prosecute all racially-motivated attacks,” said Roy L. Austin Jr., Deputy Assistant Attorney General for the Civil Rights Division. “It is unacceptable that violent acts of hate committed because of someone’s race and ethnicity continue to occur, and the department will continue to use every available tool to identify and prosecute hate crimes whenever and wherever they occur.”
“Acts of hate, such as this one, hurt not only the victim, but tear at our social fabric. They cannot be tolerated in our community,” said U.S. Attorney for the Western Distrcict of Washington Jenny A. Durkan. “The Shepard-Byrd Act is an important tool for holding defendants accountable.”
The charge carries a statutory maximum of 10 years in prison. Sentencing is scheduled in front of U.S. District Judge John C. Coughenour on Nov. 5, 2013.
The Shepard-Byrd law criminalizes acts of physical violence causing bodily injury motivated by any person’s actual or perceived race, color, national origin, religion, sexual orientation, gender, gender identity or disability.
The matter was investigated by the Seattle Division of the FBI. The Federal Way Police Department provided significant support in this prosecution. The case is being prosecuted by Assistant U.S. Attorney Bruce F. Miyake of the U.S. Attorney’s Office for the Western District of Washington and Trial Attorney Nicholas Durham of the U.S. Department of Justice’s Civil Rights Division.Washington State Man Pleads Guilty to Federal Hate Crime in Attack on Sikh ManRead the Press Release
WASHINGTON – The Department of Justice today announced Jamie Larson, 49, pleaded guilty in U.S. District Court in Seattle to a federal hate crime relating to a racially-motivated assault of a 50-year-old Sikh man who works as a taxi cab driver.
Jamie Larson pleaded guilty to one count of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act that was enacted in October 2009. The indictment alleges that on Oct. 17, 2012, Larson assaulted the victim, who is from India, based upon the victim’s actual and perceived race, color and national origin, which included Middle Eastern and Arab descent. The defendant was arrested at the scene of the attack after a witness called 911.
According to the documents filed in court, the victim was called to drive Larson to an address in Federal Way, Wash. When the taxi arrived at the destination, the driver got out of the taxi and Larson got out and attacked the driver, grabbing his beard, pulling him to the ground, punching and stomping on his head and body. Larson uttered racial slurs and insults about the vicitm’s perceived ancestry during the attack. The victim suffered damage to his back, shoulder and kidney. He was hospitalized for more than a week and has undergone lengthy physical therapy.
“This case is a testament to the Justice Department’s dedication to vigorously investigate and prosecute all racially-motivated attacks,” said Roy L. Austin Jr., Deputy Assistant Attorney General for the Civil Rights Division. “It is unacceptable that violent acts of hate committed because of someone’s race and ethnicity continue to occur, and the department will continue to use every available tool to identify and prosecute hate crimes whenever and wherever they occur.”
“Acts of hate, such as this one, hurt not only the victim, but tear at our social fabric. They cannot be tolerated in our community,” said U.S. Attorney for the Western Distrcict of Washington Jenny A. Durkan. “The Shepard-Byrd Act is an important tool for holding defendants accountable.”
The charge carries a statutory maximum of 10 years in prison. Sentencing is scheduled in front of U.S. District Judge John C. Coughenour on Nov. 5, 2013.
The Shepard-Byrd law criminalizes acts of physical violence causing bodily injury motivated by any person’s actual or perceived race, color, national origin, religion, sexual orientation, gender, gender identity or disability.
The matter was investigated by the Seattle Division of the FBI. The Federal Way Police Department provided significant support in this prosecution. The case is being prosecuted by Assistant U.S. Attorney Bruce F. Miyake of the U.S. Attorney’s Office for the Western District of Washington and Trial Attorney Nicholas Durham of the U.S. Department of Justice’s Civil Rights Division.
IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Vista Man Charged with Obstructing Murder InvestigationRead the Press Release
Brian Karl Brimager, former boyfriend of United States Citizen Yvonne Baldelli, was indicted by a federal grand jury in San Diego yesterday on charges that he obstructed justice and made false statements to law enforcement in connection with the investigation into Baldelli’s suspected murder in Panama in 2011. Agents with the Federal Bureau of Investigation arrested Brimager without incident this morning at his house in Vista.
The indictment, unsealed today, alleges that Brimager killed Baldelli in late November 2011 and then engaged in an elaborate scheme to cover up his crime. This scheme included destroying evidence, giving false information to law enforcement, and sending a series of emails purportedly from Baldelli making it appear to her friends and family that she was still alive and traveling with another man in Costa Rica.
According to the indictment, in September 2011 the couple moved together from Los Angeles to the archipelago of Bocas del Toro, Panama. They rented a room in a five-unit hostel on Isla Carenero, a small island near Bocas reachable only by boat. The indictment alleges that while in Panama, Baldelli suffered physical abuse at the hands of Brimager resulting in bruising around her eyes and on her arms.
Baldelli was last seen on the evening of November 26, 2011, when she left Carlos’ Steakhouse, a bar and restaurant in Bocas del Toro, with Brimager.
The indictment alleges that after Baldelli’s disappearance, Brimager created a cover story to explain her whereabouts and in the days and months that followed engaged in a series of obstructive acts designed to make that version appear credible. For example, using Baldelli’s laptop, Brimager sent emails to Baldelli’s friends and family from her personal email account, purporting to be from Baldelli, falsely stating that she was in Costa Rica with another man. To “corroborate” this story, Brimager traveled to Bocas Del Toro on November 27, 2011 and withdrew money from Badelli’s bank account at an ATM to make it appear that she was on her way to Costa Rica. Later, on his way back to the United States, Brimager took a two-day layover in Costa Rica. According to the indictment, while in Costa Rica, Brimager made another withdrawal from Baldelli’s bank account at an ATM in order to make it appear that Baldelli was alive and in San Jose.
“Brimager impersonated Baldelli over email in an attempt to trick her friends and family into believing she was still alive, thereby obstructing, influencing and impeding investigation into her disappearance and suspected death,” the indictment said.
In addition to sending fake emails from Baldelli, the indictment charges that Brimager obstructed justice by disposing of physical evidence, including a bloody mattress. The indictment alleges that prior to dumping the mattress in the ocean, Brimager conducted two internet searches on Baldelli’s computer – one for “washing mattress” and a second for “washing mattress blood stain.” The indictment also alleges that Brimager got rid of Baldelli’s personal belongings – including clothing, cosmetics and jewelry – by packing the items into approximately 10 large garbage bags and leaving them on the dock outside the hostel for disposal.
The indictment also charges Brimager with making materially false statements to the FBI during an interview on March 21, 2012. The indictment alleges that Brimager falsely stated to the FBI that Baldelli left Panama for Costa Rica on November 27, 2011. Brimager also claimed that Baldelli took her white Sony VAIO laptop with her when she left Panama, when in fact, the laptop was found in Brimager’s possession on March 21, 2012 – months after Baldelli’s disappearance. The indictment alleges that Brimager also made materially false statements to the FBI regarding the laptop ever being in Panama, Brimager’s plans to return to the United States, and his striking of Baldelli. Brimager also falsely stated, according to the indictment, that he had never accessed Baldelli’s personal email account or sent emails purporting to be from Baldelli.
DEFENDANT Case Number: 13CR2381-JM Brian Karl Brimager SUMMARY OF CHARGESObstruction of Justice, 10 counts - Title 18, United States Code, Section 1512(c)(2)
Maximum Penalties: 20 years imprisonment for each count, a $250,000 fine, 3 years supervised releaseFalse Statement to a Federal Officer, 1 count - Title 18, United States Code, Section 1001
AGENCIES
Maximum Penalties: 5 years imprisonment, a $250,000 fine, 3 years supervised releaseFederal Bureau of Investigation
*An indictment itself is not evidence that the defendant committed the crimes charged. The defendant is presumed innocent until the United States meets its burden of proving guilt beyond a reasonable doubt.
Two Men Sentenced After Pleading Guilty to Drug ChargeRead the Press Release
JAMES SELF, 29, a resident of St. Helena Parish, was sentenced today to 70 months imprisonment and 3 years of supervised release by U. S. District Judge Jane Triche Milazzo after pleading guilty to cocaine and marijuana charges.
SELF pled guilty on November 13, 2012, to one count of conspiracy to distribute and possess with the intent to distribute crack cocaine and marijuana, and one count each of possession with intent to distribute crack cocaine and possession with intent to distribute marijuana.
In a separate case, TULLIE WHITEN, 28, a resident of Clinton, Louisiana, was sentenced today to 53 months imprisonment and 3 years of supervised release by U. S. District Judge Jane Triche Milazzo after pleading guilty to cocaine and marijuana charges, announced U. S. Attorney Dana J. Boente.
WHITEN pled guilty on June 14, 2012, to one count of conspiracy to distribute and possess with the intent to distribute crack cocaine and marijuana and one count each of possession with intent to distribute crack cocaine and possession with intent to distribute marijuana.
The investigations were conducted by Special Agents of the Drug Enforcement Administration. Both cases were prosecuted by Assistant U. S. Attorney Andre’ Jones.
Two Harrisburg-Based U.S. Postal Inspectors Receive Award for Consumer Fraud WorkRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a U.S. Postal Inspector and a Consumer Fraud Analyst were awarded the Federal Trade Commission’s (FTC) Criminal Liaison Unit’s Consumer Shield Award for their dedicated efforts related to the investigation of the MoneyGram fraud case.
Nicholas Alicea and Michael Hartman were presented the Consumer Shield Award today by James Kohm, Associate Director for the FTC’s Division of Enforcement. It is the first time the FTC has presented this award established to recognize extraordinary work by a criminal law enforcement officer in fighting consumer fraud. Both men will be the only recipients of the award this year.
Alicea and Hartman were nominated for the award by United States Attorney Peter J. Smith.
Alicea and Hartman led the long-term investigation that resulted in the settlement with MoneyGram forfeiting $100 million to be used to compensate thousands of victims of mass marketing and consumer fraud schemes perpetrated by MoneyGram agents between 2004 and 2009.
In addition to the $100 million settlement, approximately 25 former MoneyGram agents have been prosecuted by the United States Attorney’s Office for the Middle District of Pennsylvania. Those defendants victimized individuals throughout Central Pennsylvania many of them elderly, from central and northeastern PA, including residents of: York; Mifflinburg; Sugarloaf; Lehighton; Chambersburg; Moosic; Dover; Stroudsburg; Harrisburg; Clark Summit; Jim Thorpe; Lairdsville; Montgomery; Milford; Bloomsburg; Mount Pocono; Palmyra; Tunkhannock; Montandon; State College; St. Clair; Lewisburg; Shenandoah; Montoursville; Wilkes-Barre; Northumberland; and Elizabethville.
The MoneyGram case was prosecuted by the U.S. Department of Justice Trial Attorney Craig Timm of the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS) and Assistant U.S. Attorney Kim Douglas Daniel of the U.S. Attorney’s Office for the Middle District of Pennsylvania. The forfeiture was handled by Acting Assistant Deputy Chief Jeannette Gunderson of AFMLS’ Forfeiture Unit. The case was investigated by the Harrisburg, PA, office of the United States Postal Inspection Service, Philadelphia Division.
U.S. Postal Inspectors and the U.S. Attorney’s Office are continuing the investigation and prosecutions of consumer fraud schemes that use international money transfer services to victimize U.S. Citizens.
Persons who believe they were victims of the fraud scheme should visit http://www.justice.gov/criminal/vns/caseup/ or call 1-877-282-2610 (United States Only) or 317-324-0390 (International) for instructions on how to request compensation.
Two Broward Residents Arrested on Charges of FraudRead the Press Release
Criminal Complaint Charges Individuals with Scheme to Defraud Spanish-Speaking Consumers by Threatening Them with Deportation
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division and Ronald Verrochio, Postal Inspector in Charge, U.S. Postal Inspection Service, Miami Division, announced yesterday that two individuals were arrested on a federal warrant alleging that they operated a series of fraudulent businesses targeting Spanish-speaking consumers. The criminal complaint, charged Daniel Carrasco, 54, and Federico Martin Gioja, 45, both of Miramar, alleging that the pair incorporated, owned, and ran Florida companies that used a phone room in Argentina to extract money from consumers using lies and extortion.
In addition to the criminal complaint, the Justice Department filed a civil case against Carrasco, Gioja, Romina Tasso and their businesses, seeking an injunction to prevent further fraud and an asset freeze to prevent dissipation of funds obtained from consumers.
Carrasco and Gioja made their first appearances in court yesterday.
According to the civil complaint and the affidavit filed in support of the criminal complaint, the case was the result of a referral from Spanish-language television station, Univision. Companies belonging to Carrasco and Gioja are alleged to have falsely claimed an affiliation with Univision and purported to sell products such as vitamins, lotions, medical insurance, and English-language training products. However, according to the documents, the companies frequently did not deliver products ordered by consumers. The companies allegedly did not have many of the products they promised to send to consumers, and so consumers received other products instead.
According to the civil and criminal complaints, after consumers refused delivery of the companies’ shipments, employees of the Argentinian phone room used by Carrasco and Gioja called and falsely threatened the consumers with arrest, deportation, or fines on their gas and electric bills.
Mr. Ferrer stated, “These defendants specifically targeted Spanish-speaking victims, pretending to be affiliated with the Univision television network, to sell their products from their phone room in Argentina. In fact, however, the defendants had absolutely no connection to Univision, and their companies did not deliver the products ordered by consumers. As this case illustrates, the U.S. Attorney’s Office is committed to investigating and prosecuting fraudsters, both domestic and international, whose schemes defraud American consumers.”
“This case demonstrates our commitment to use every tool at our disposal -- including asset freezes, injunctive relief, and criminal prosecution -- against companies that seek to lie, extort, threaten, and defraud Americans,” said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division. “Protecting consumers from fraud continues to be a top priority for the Department of Justice.”
“Postal Inspectors will continue to investigate cases involving fraud against consumers and will vigorously pursue those individuals who use the mail in furtherance of their criminal schemes,” said Ronald Verrochio, U.S. Postal Inspector in Charge, Miami Division.
According to the criminal and civil complaints, Carrasco and Gioja routinely changed the names of the companies under which they did business to evade complaints, regulators, and law enforcement. The businesses allegedly were contacted by a variety of state agencies regarding their illicit practices. In emails cited in the affidavit in support of arrest, those working with Carrasco and Gioja referred to companies tainted by complaints as “burnt.” Rather than changing their practices, the defendants allegedly incorporated new companies and started the same illegal practices again.
Mr. Ferrer commended the investigative efforts of the Postal Inspection Service. The civil case is being handled by Trial Attorney Jessica Gunder of the U.S. Department of Justice’s Consumer Protection Branch. The criminal case is being prosecuted by Assistant Director Richard Goldberg with the Consumer Protection Branch.
A criminal complaint is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt. A civil complaint contains allegations only and the defendants will have the opportunity to challenge those allegations in court.
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.
Tonawanda Man Sentenced in Child Pornography CaseRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Rosan J. Mack, 39, of Tonawanda, N.Y., who was convicted of possession of child pornography, was sentenced to 10 years in prison U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated that Mack's roommate delivered a DVD containing a video of child pornography to the Tonawanda Police along with a note identifying the defendant. After receiving the DVD, detectives were able to establish that the DVD did in fact belong to the defendant.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel and the Tonawanda Police Department, under the direction of Chief Anthony Palombo.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Toledo Man Sentenced to 15 Years in Prison for Sex Trafficking of MinorsRead the Press Release
A Toledo man was sentenced to 15 years in prison for sex trafficking of children, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Roy Calhoun, 30, guilty to multiple charges last year, including sex trafficking of children, conspiracy to obstruct a sex trafficking investigation and conspiracy to possess with intent to distribute Oxycodone.
“This defendant profited from children in the commercial sex trade,” Dettelbach said. “Our office will continue to pursue human trafficking cases with vigor.”
Calhoun was arrested in 2010 and accused of recruiting females, including minor children, to work as prostitutes between 2007 and 2010. He advertised a minor on craigslist.com on different occasions and drove the minor to Toledo-area hotels, according to court documents.
Calhoun beat and assaulted the females who worked for him and threatened those who left or attempted to quit working as prostitutes, according to court documents.
This case was prosecuted by Assistant United States Attorney James V. Moroney following an investigation by the Northwest Ohio Violent Crimes Against Children Task Force.
The NWOVCACTF includes members of the Federal Bureau of Investigation, Ohio Bureau of Criminal Identification and Investigation, Toledo Police Department, Lima Police Department, Perrysburg Township Police Department, Fulton County Sheriff's Office and the Ottawa County Sheriff's Office.
Three Miami Men Sentenced in Identity Theft Tax Refund Fraud SchemeRead 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 Division (IRS-CID), Ronald Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), and Sergio Velazquez, Chief, Hialeah Police Department, announced that defendants Lineten Belizaire, 22, Earnest Baldwin, 36, and Earl Baldwin, 42 all of Miami, were sentenced today for their participation in a $1.7 million identity theft tax refund fraud scheme. Specifically, U.S. District Judge Cecilia M. Altonaga sentenced Belizaire to 129 months in prison, to be followed by 3 years of supervised release. Defendant Earnest Baldwin was sentenced to 172 months in prison, to be followed by 4 years of supervised release and defendant Earl Baldwin was sentenced to 84 months in prison, followed by 4 years of supervised release. Judge Altonaga ordered that a restitution hearing be held within 90 days.
Lineten Belizaire pled guilty to access device fraud and aggravated identity theft on March 18, 2013. Earnest and Earl Baldwin were convicted at trial on April 10, 2013, on charges of conspiracy to defraud the government, conspiracy to commit access device fraud, access device fraud, and multiple counts of aggravated identity theft. On April 17, 2013 co-defendant Marckell Steward, 21, of Miami, was sentenced to 72 months in prison, to be followed by 3 years of supervised release for his participation in the identity theft tax refund fraud scheme. Steward had previously pled guilty to conspiracy to commit access device fraud and aggravated identity theft.
According to court documents and testimony, Lineten Belizaire, along with co-conspirators Earnest and Earl Baldwin, and Marckell Steward, were involved in an identity theft tax fraud scheme that operated from July 2011 through June 2012. During the course of their fraud scheme, approximately $1.7 million in fraudulent refund claims were submitted to the IRS for payment.
According to documents filed in court, Belizaire conspired with Steward and Earnest and Earl Baldwin on a plan to use stolen personal identification information of others to file fraudulent and unauthorized tax returns claiming refunds on debit cards. Some of the refund claims were filed from Earl Baldwin's residence. According to the factual proffer, Belizaire exchanged text messages with Steward in which the defendants sent and received personal identification information of victims and also sent and received debit card account numbers that were used for receiving victims’ tax refunds.
As stated in trial testimony and evidence, Earnest Baldwin possessed more than 1,000 names, dates of birth, and Social Security numbers and approximately 40 pre-paid debit cards in other people’s names. Among the papers seized were high school report cards with identity information and data from an organization for disabled persons containing identity information. The evidence at trial also showed that Earnest and Earl Baldwin withdrew money from debit cards loaded with fraudulently obtained refunds. According to plea documents, more than 80 fraudulent tax returns using stolen identifications were electronically filed from the IP address belonging to the Belizaire. Defendant Belizaire was also observed on ATM video withdrawing money on multiple occasions from debit cards loaded with fraudulent tax refunds.
Mr. Ferrer commended IRS-CID, USPIS, and the Hialeah Police Department for their work on the case. The case is being prosecuted by Assistant U.S. Attorneys Michael N. Berger and Maurice Johnson.
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.
Suburban Man Sentenced to 10 Years in Federal Prison for Possessing Child PornographyRead the Press Release
CHICAGO — A former suburban man was sentenced today to one month more than the mandatory minimum of 10 years in federal prison for possessing child pornography. The defendant, BRIAN PERRON, 41, formerly of Wood Dale, pleaded guilty in April 2012, admitting then that he had sexually molested two children he was babysitting when he was 19 years old. He faced the 10-year mandatory minimum sentence because of a 2006 state conviction for possessing child pornography, and he was attempting to obtain additional child pornography depicting sexual abuse when he was arrested on the federal charges.
Perron, who has been in federal custody almost four years, was sentenced to 121 months in prison, followed by five years of supervised release, by U.S. District Judge Robert Gettleman. He must serve at least 85 percent of his federal sentence before he is eligible for release and there is no parole in the federal prison system.
Perron was arrested in July 2009 after Homeland Security Investigations agents executed a search warrant at his home and seized an external computer hard drive that contained 97 images and 21 videos depicting child pornography. The search and arrest stemmed from an HSI investigation of a commercial website that advertised and sold videos of children being forced to perform sexual acts with adults.
Perron “not only collected images and videos of child pornography, but he was attempting to purchase a membership to a child pornography library to obtain more material,” the government argued in a sentencing memo.
The sentence was announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Gary Hartwig, Special Agent-in-Charge of Homeland Security Investigations in Chicago.
The government was represented by Assistant U.S. Attorney Tony U. Iweagwu, Jr.
Spencer Man Sentenced to Federal Prison for Drug ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced June 13, 2013, to ten years in federal prison.
Gabriel Ginger, 26, from Spencer, Iowa, received the prison term after a January 30, 2013, guilty plea to one count of conspiring to distribute methamphetamine.
At the guilty plea, Ginger admitted his involvement in a conspiracy from about 2010 through August 2011 that distributed more than 50 grams of actual (pure) methamphetamine. On July 21, 2011, law enforcement officers executed a search warrant at Ginger’s residence and seized over 10 grams of methamphetamine which Ginger planned to distribute to others.
Ginger was sentenced in Sioux City by United States District Court Judge Donald E. O’Brien. Ginger was sentenced to 120 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Ginger is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Iowa Department of Narcotics Enforcement, Spencer Police Department, Clay County Sheriff’s Office, Iowa Great Lakes Drug Task Force, and the Iowa Division of Criminal Investigations.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-4049.
Sioux Falls Man Sentenced for Possession with Intent to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on June 25, 2013 by U.S. District Judge Roberto A. Lange.
Alexis Salgado, age 40, was sentenced to 37 months of imprisonment; a $1,000 fine; 3 years of supervised release; and a $100 special assessment to the Federal Crime Victims Fund.
Salgado was indicted by a federal grand jury on July 18, 2012 and he pled guilty to the charge on April 9, 2013.
The charge stems from an incident wherein a South Dakota Highway Patrol Trooper came upon a vehicle with its hood up sitting on the side of Highway 44. There was smoke coming from under the hood and the vehicle’s hazard lights were on. The Trooper stopped to provide assistance and encountered three men with the vehicle. During the Trooper’s contact with the men, a pack of Newport cigarettes stuffed with a plastic bag containing 12.8 grams of methamphetamine was found near the air intake by the front left fender of the vehicle. Additionally, trace amounts of marijuana were located inside the head band of a baseball cap located in the back seat, and a glass pipe was found in between the rear seat cushions. A urine sample was obtained from Salgado who tested positive for methamphetamine, amphetamine and marijuana.
The investigation was conducted by the South Dakota Highway Patrol and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Salgado was immediately turned over to the custody of the U.S. Marshals Service.
Sioux City Sex Offender Sentenced to 18 Years on Child Pornography ChargesRead the Press Release
A man who distributed and received child pornography was sentenced June 26, 2013, to eighteen years in federal prison.
Jeffrey Huygens, age 47, of Sioux City, Iowa, received the sentence after a February 25, 2013, guilty plea to one count of distributing child pornography and one count of receiving child pornography. At the guilty plea, Huygens admitted he knowingly used the Internet to distribute and receive child pornography. Huygens also admitted that, in 1990, in Island County, Washington, he was convicted of Child Molestation in the First Degree.
Huygens was sentenced in Sioux City by United States District Court Judge Donald E. O’Brien. Huygens was sentenced to 216 months’ imprisonment. A special assessment of $200 was imposed, and Huygens must also serve a ten-year term of supervised release. He must comply with all sex offender registration and public notification requirements.This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-4094.
Sioux City Man Sentenced to 15 Years for Distributing Child PornographyRead the Press Release
A man who distributed child pornography was sentenced June 25, 2013, to fifteen years in federal prison.
Chad Carver, age 28, of Sioux City, Iowa, received the sentence after a February 28, 2013, guilty plea to one count of distributing child pornography. At the guilty plea, Carver admitted he knowingly used the Internet to distribute child pornography.Carver was sentenced in Sioux City by United States District Court Judge Donald E. O’Brien. Carver was sentenced to 180 months’ imprisonment. A special assessment of $100 was imposed, and Carver must also serve a ten-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation and the Federal Bureau of Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-4079.
Sinovel Corporation and Three Individuals Charged in Wisconsin with Theft of Amsc Trade SecretsRead the Press Release
A manufacturer and exporter of wind turbines based in the People’s Republic of China, two employees of that manufacturer and a former employee of a subsidiary of AMSC, a United States-based company formerly known as American Superconductor Inc., were charged today with stealing trade secrets from AMSC causing an alleged loss of more than $800 million to the company, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Western District of Wisconsin John W. Vaudreuil.
A federal grand jury in the Western District of Wisconsin returned an indictment charging Sinovel Wind Group Co. Ltd., dba Sinovel Wind Group (USA) Co. Ltd.; Su Liying, 36, the deputy director of Sinovel’s Research and Development Department; Zhao Haichun, 33, a technology manager for Sinovel; and Dejan Karabasevic, 40, a former employee of AMSC Windtec GmbH, a wholly-owned subsidiary of AMSC, with one count each of conspiracy to commit trade secret theft, theft of trade secrets and wire fraud.
“Today, we announce charges against Sinovel and three individuals for stealing proprietary wind turbine technology from AMSC in order to produce their own turbines powered by stolen intellectual property,” said Acting Assistant Attorney General Raman. “This charged IP theft caused significant harm to a domestic company that develops cutting edge technology and employs Americans throughout the country. Stamping out intellectual property theft is a top priority for this administration, and we will continue to work with our IP Task Force partners to ensure that American ingenuity is protected.”
“The allegations in this indictment describe a well-planned attack on an American business by international defendants--nothing short of attempted corporate homicide," said U.S. Attorney Vaudreuil. “The Department of Justice and this office are committed to protecting American commerce and aggressively prosecuting those who seek to steal and use our intellectual property. I commend the efforts of the FBI and their Austrian counterparts in this long-term international investigation, and the assistance provided by the owners and operators of the Massachusetts turbines."
"The Sinovel case is a classic example of the growing insider threat facing our nation's corporations and their intellectual property,” said FBI Executive Assistant Director Richard McFeely. “The FBI will not stand by and watch the hemorrhage of U.S. intellectual property to foreign countries who seek to gain an unfair advantage for their military and their industries. We are actively working with our private sector and government partners to disrupt and impact those who have made it their mission to steal U.S. military and corporate secrets. Since 2008, our economic espionage arrests have doubled; indictments have increased five-fold; and convictions have risen eight-fold.”
Karabasevic headed the automation engineering department at AMSC Windtec in Klagenfurt, Austria. Su and Zhao are Chinese nationals living in China, and Karabasevic is a Serbian national who lived in Austria, but now lives in Serbia.
According to the indictment, AMSC developed and sold software and equipment to regulate the flow of electricity from wind turbines to electrical grids, and it considered the software and equipment to be trade secrets and proprietary information. The software that runs the PM3000, a part of AMSC’s wind turbine electrical control system, was developed in Wisconsin and was stored on a computer in AMSC’s office in Middleton, Wis. The PM3000 worked with other products, including AMSC’s Low Voltage Ride Through (LVRT) software. The LVRT system is designed to keep a wind turbine operational when there is a temporary sag or dip in flow of electricity in the electrical grid.
Sinovel purchased software and equipment from AMSC for the wind turbines that Sinovel manufactured, sold and serviced. According to the indictment, in March 2011, Sinovel owed AMSC more than $100 million for products and services previously delivered and had entered into contracts to purchase more than $700 million in products and services from AMSC in the future.
The indictment alleges that the four defendants conspired to obtain AMSC’s copyrighted information and trade secrets in order to produce wind turbines and to retrofit existing wind turbines with LVRT technology, without having to pay AMSC for previously-delivered products and services, thereby cheating AMSC out of more than $800 million.The indictment alleges that Sinovel, through Su and Zhao, recruited Karabasevic to leave AMSC Windtec and join Sinovel, and to secretly copy intellectual property from the AMSC computer system. The four defendants are charged with stealing the PM3000 source code from AMSC on March 7, 2011, and transmitting it by downloading it from an AMSC computer in Wisconsin to a computer in Klagenfurt.
The indictment alleges that following the theft of AMSC’s intellectual property, Sinovel commissioned several wind turbines in Massachusetts and copied into the turbines software compiled from the software stolen from AMSC. The U.S.-based builders and operators of these Massachusetts turbines have cooperated in this investigation.
If convicted, Sinovel faces a maximum penalty on each count of five years of probation and a fine of twice the gross gain or loss, meaning Sinovel would face a fine for each count charged of up to twice the alleged loss of more than $800 million.
If convicted, Su, Zhao and Karabasevic each face a maximum penalty of five years in prison on the conspiracy charge, 10 years in prison for theft of a trade secret and 20 years in prison for wire fraud.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the Madison, Milwaukee and Boston offices of the FBI; the FBI Legal Attachés’ Offices in Vienna, Austria and Beijing; the FBI Criminal Investigative Division; the FBI Intellectual Property Rights Unit; the Bundeskriminalamt (Federal Criminal Intelligence Service) and the Bundesministerium Fuer Justiz (Federal Ministry of Justice) in Austria; the Landeskriminalamt - Klagenfurt and the Staatsanwaltschaft - Klagenfurt (Criminal Investigative Police and State Prosecutor's Office – Klagenfurt, Austria); and with the assistance of the Justice Department’s Office of International Affairs. The case is being prosecuted by Assistant U.S. Attorneys Timothy M. O’Shea and Munish Sharda, and Trial Attorney Brian Levine of the Criminal Division’s Computer Crime and Intellectual Property Section.
This case is part of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). Attorney General Eric Holder created the IP Task Force, which is led by the Deputy Attorney General, to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work. To learn more about the IP Task Force, go to: www.justice.gov/dag/iptaskforce.
Shelton Man Sentenced to 30 Months in Federal Prison for Trading Child Pornography on the InternetRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ARTHUR GALLOWAY, 38, of Shelton, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 30 months of imprisonment, followed by 10 years of supervised release, for trading child pornography on the Internet.
According to court documents and statement made in court, on March 14, 2012, the Connecticut State Police Computer Crimes Unit, Shelton Police Department and Federal Bureau of Investigation conducted a court-authorized search of GALLOWAY’s residence and seized a laptop computer, an external hard drive and other items. Investigators determined that GALLOWAY used the Internet to trade numerous images and video of child pornography, and he was arrested at that time.
Subsequent forensic analysis of the seized items revealed that GALLOWAY possessed 11 printed photographs, 913 images and 45 videos of children engaging in sexually explicit conduct. Some of the videos exceeded 20 minutes in length.
On January 11, 2013, GALLOWAY pleaded guilty to one count of receipt and distribution of child pornography.
This matter was investigated by the Connecticut State Police Computer Crimes Unit, the Shelton Police Department, the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The case was prosecuted by Assistant United States Attorneys Felice M. Duffy and Neeraj N. Patel.
The Connecticut Child Exploitation Task Force, which is housed at the main FBI office in New Haven, investigates crimes against children occurring over the Internet, and provides computer forensic review services for participating agencies. For more information about the Task Force, or to report child exploitation crimes, please contact the FBI at 203-777-6311.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Serial Bank Robber Sentenced to 15 Years in PrisonRead the Press Release
PHILADELPHIA - Aaron Thomas, 47, of Philadelphia, was sentenced today to 15 years in prison for committing six bank robberies. On March 14, 2013, Thomas pleaded guilty to robbing six banks: (1) PNC Bank located on Old York Road in Abington on August 10, 2012; (2) TD Bank located on City Avenue in Philadelphia, on August 8, 2012; (3) TD Bank located on City Avenue in Philadelphia on May 17, 2011; (4) TD Bank located on Moreland Road in Abington, on September 17, 2009; (5) TD Bank located on Grant Avenue in Philadelphia, on September 17, 2009; and (6) TD Bank located on Old York Road in Abington on July 24, 2009. Thomas was apprehended by Abington Police following the PNC Bank robbery on August 10, 2012 after a vehicle and foot pursuit through the streets of Abington and Philadelphia which resulted in two police officers being injured and several vehicles damaged. Thomas has two prior convictions for bank robbery.
In addition to the prison term, U.S. District Court Judge Lawrence F. Stengel ordered Thomas to pay $30,905 in restitution, a $600 special assessment, and ordered three years of supervised release.
The case was investigated by Federal Bureau of Investigation, the Abington Township Police Department, and the Philadelphia Police Department. It was prosecuted by Assistant United States Attorney Robert J. Livermore.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Sentences for on June 21 - June 26, 2013Read the Press Release
Jesus Abel Lopez-Perez, 29, of Las Vegas, Nevada, was sentenced by Federal District Court Judge Scott W. Skavdahl on June 26, 2013, for conspiracy to possess with intent to distribute, and to distributing methamphetamine. Lopez-Perez was arrested in Las Vegas, Nevada. He received 37 months imprisonment, to be followed by four years of supervised release and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Julia Cox, 59, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on June 26, 2013, on one count of conspiracy to possess with intent to distribute, and to distributing a synthetic cannabinoid, a Schedule I Controlled Substance, resulting in serious bodily injury and one count of distribution of a synthetic cannabinoid, a Schedule I Controlled Substance, resulting in serious bodily injury, and aiding and abetting. Cox was arrested in Casper, Wyoming. She received 50 months imprisonment, to be followed by three years of supervised release and was ordered to pay a $200.00 special assessment and a $100.00 fine. This case was investigated by the Casper Police Department and the U.S. Drug Enforcement Administration.
Jennifer Nicole Tuttle, 31, of Gillette, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on June 25, 2013, for making of false claims to obtain Medicaid and Supplemental Nutrition Assistance Program (SNAP) benefits. Tuttle appeared pursuant to a summons. She received five years of supervised probation and was ordered to pay restitution in the amount of $55,080.32. This case was investigated by the State of Wyoming, Department of Family Services’ Fraud and Recovery Unit.
Jorge Arrendondo-Mireles, 35, of Portland, Oregon, was sentenced by Federal District Court Judge Scott W. Skavdahl on June 25, 2013, for distribution of methamphetamine and distribution of cocaine. Arrendondo-Mireles was arrested in Oregon. He received 12 months and one day imprisonment, was ordered to pay a $200.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the Casper and Mills Police Departments, the Natrona County Sheriff’s Office, the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Ramon Erik Slater, 23, of Chicago, Illinois, was sentenced by Federal District Court Judge Alan B. Johnson on June 21, 2013, for receiving a firearm while under felon indictment and for making false statements to acquire a firearm. Slater was obtained via Writ from state custody. He was sentenced to time served, was ordered to pay a $700.00 fine and released to state custody to complete his term of 5-10 years of imprisonment. Upon release from state custody, Slater will serve a term of three years of supervised release. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Chris L. George, 29, of Gillette, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on June 21, 2013, for conspiracy to possess with intent to distribute and distribution of between 200 and 350 grams of methamphetamine. George was arrested in Gillette. He received 51 months imprisonment, to be followed by four years of supervised release and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Santa Cruz Woman Sentenced in Foreclosure Assistance ScamRead the Press Release
SAN JOSE - Tara Denise Bonelli was sentenced to 37 months in prison by United States District Judge Edward J. Davila in San Jose, California, on June 25, 2013, for defrauding investors of over $3,000,000, announced United States Attorney Melinda Haag.
On February 12, 2013, Bonelli pleaded guilty in federal court to Wire Fraud, in violation of 18 USC § 1343. Bonelli admitted that, beginning no later than May 2006, and continuing to at least until October 2008, she promoted false and fraudulent real estate investments by knowingly making false promises about how investor funds were to be invested and repaid.
According to her plea, in May 2004, Bonelli founded Vista Holding Company, a holding company that owned and operated eight entities, including Vista Funding, Inc., a pre-foreclosure services company that helped refinance properties or purchased properties to develop, rent, and/or sell; Independent Financial, a company that bought mortgage notes from banks; Equity Advisors, a mortgage company that matched lenders with borrowers; Bonelli Properties, a real estate company; Lost Dollar Services, a company formed to facilitate collection of homeowner overages; Equity Inquiries, a real estate research company; Outlook Enterprises, a development company; and Sovereign Property Management, a property management company. Although Bonelli established all of these entities under Vista Holding Company, she primarily conducted business under Vista Funding Inc., and controlled all of its business transactions.
In furtherance of her scheme, Bonelli told investors that their money would be used to purchase properties for resale or conversion to condominiums, and to engage in the business of foreclosure assistance. In some instances, to lure their investments, Bonelli promised a return of up to 1000%. Rather than use investor money for the stated purpose, Bonelli used some of the investor funds to pay for her personal expenses.
Bonelli, 33, of Santa Cruz, California, was indicted by a federal grand jury on March 16, 2011. She was charged with eighteen counts of Wire Fraud, in violation of 18 United States Code § 1343. Under the plea agreement, Bonelli pleaded guilty to one count that encompassed the loss due to fraud in all of the counts, which was over $3,000,000. The sentencing court also ordered that Bonelli pay restitution in an amount to be settled at a hearing to be held on August 5, 2013, at 3:00 p.m. before Judge Davila in San Jose.
Matt Parrella and Susan Knight are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Elise Etter. The prosecution is the result of a 2-year investigation by the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation Division.
Sacramento Woman sentenced to 38 months in prison for role in drug trafficking and money laundering conspiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Sacramento woman was sentenced in Juneau to federal prison for drug trafficking and money laundering conspiracy.
Jennifer McGrath, 26, of Sacramento, California, was sentenced June 26, 2013, by U.S. District Court Judge Timothy M. Burgess to 38 months in prison for her role in a drug trafficking and money laundering conspiracy.
According to Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the case, the charges arose from a joint investigation including the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Port of Seattle Police Department, and the Juneau Police Department-Drug Metro Unit, which were investigating the importation of oxycodone and money laundering offenses in Alaska.Between January 2009, and continuing through July 2010, McGrath was involved in a large scale drug trafficking conspiracy transporting oxycodone from California for later sale in Juneau, Alaska. As part of the conspiracy, McGrath made multiple airline trips from California to Juneau carrying the oxycodone pills on her person. McGrath distributed the pills to local dealers and collected the drug proceeds. McGrath either laundered the drug proceeds using commercial wire transfers or body carried drug proceeds back to California for members of the conspiracy. During the course of the conspiracy, McGrath transported approximately 1500 pills of oxycodone and laundered over $14,000 in drug proceeds. On July 22, 2010, McGrath was contacted by law enforcement at the Seattle-Tacoma (SEA-TAC) Airport where she was scheduled to fly from Juneau to California while in possession of approximately $7,000 in cash, which was seized by law enforcement.
Prior to imposing sentence, Judge Burgess emphasized the seriousness of the offense and the need to deter the defendant. He also emphasized the need to protect the public from further crimes of the defendant, to provide treatment in the most effective manner, and to avoid unwarranted sentencing disparities as reasons for imposing the 38 month prison sentence.
Ms. Loeffler commended the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Port of Seattle Police Department, and the Juneau Police Department-Drug Metro Unit for the investigation leading to the successful prosecution of McGrath.
Rowlett, Texas, Man Sentenced to One Year and One Day in Federal Prison for Selling Firearms Without A LicenseRead the Press Release
Defendant Sold Used Firearms for Resale from His Print Screen Shop in Garland, Texas
DALLAS — Jackie Don Burke, 68, of Rowlett, Texas, was sentenced this morning by U.S. District Judge Barbara M. G. Lynn to one year and one day in federal prison, following his conviction at trial in February 2013 for engaging in the business of firearms without a license. Burke was ordered to surrender to the Bureau of Prisons on July 30, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The government presented evidence at trial that Burke repeatedly bought used firearms for resale, a business that he conducted out of his print screening shop in Garland, Texas. According to Burke’s own records, not particularly well kept, he sold at least 135 firearms in a 14-month period.
In one instance, Burke sold a pistol to an undercover agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) without even asking if he was a prohibited person, i.e., a convicted felon. Burke only asked the agent if he had a Texas driver’s license, which Burke only glanced at. Burke had a sign outside his print screening business that declared that he was in the business of selling guns and maintained that he was simply selling firearms from his personal collection, which is lawful. Burke testified at trial and told the jury that he was too old to go to jail.
The case was investigated by ATF; Assistant U.S. Attorneys Taly Haffar and Katherine Pfeifle prosecuted.
Rochester Woman Sentenced for Stealing from VA Death Pension ProgramRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Wanda Williams, 52, of Rochester, N.Y., who was convicted of theft of government property, was sentenced by U.S. District Judge Frank Geraci to five years probation, 100 hours of community service and was ordered to repay $13,181 to the United States Department of Veterans Affairs.
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that Williams stole and cashed over $13,000 worth of checks issued to her deceased grandmother by the United States Department of Veterans Affairs as part of their Death Pension Program. This program was designed to provide financial assistance to surviving spouses of veterans who served on active duty during a period of war.
The defendant's grandfather was a veteran who served in the United States Army during World War Two. As a result of his service and sacrifice, and due to her financial condition, his widow was entitled to a monthly pension check from the V.A. following his death in 1982. These monthly benefits should have ended when the defendant's grandmother died in 2007, however, the defendant continued to cash them until 2010, when her conduct was uncovered by federal investigators.
The sentencing is the culmination of an investigation on the part of Special Agents from the United States Department of Veterans Affairs - Office of Inspector General, under the direction of Special Agent In Charge Jeffrey G. Hughes.Rochester Man Charged with Making False StatementsRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Tuffek Mohammed Ali Saleh, 41, a citizen and national of Yemen, was arrested in Rochester and charged by criminal complaint with making a false statement on an immigration document, making a false statement to an Immigrant Official and making a false claim of United States Citizenship. The charges carry a maximum penalty of 10 years in prison, and a fine of up to $250,000.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that according to the complaint, in April 2012, the defendant applied for U.S. Citizenship under the name Yehya Muthana Ali. During the processing of Saleh's application, it was determined that the defendant had previously applied to enter the United States using a different identity. The complaint further alleges that during a subsequent interview with immigration officials, Saleh failed to disclose that he in fact previously went by other names.
In April 2013, Saleh walked into a New York State Lottery Claims Center in Rochester and presented a torn scratch off ticket claiming to have won $3,000,000. As a result, the defendant filled out a Claim Form Worksheet and indicated that he was United States Citizen. According to the New York State Lottery, citizenship is material to the awarding of any lottery winnings because citizens and non-citizens are taxed at different rates.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Marian W. Payson. Saleh is due back in court on July 24, 2013 at 9:00 a.m.
The criminal complaint is the culmination of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until proven guilty in a court of law.Robert Packnett Pleads Guilty to Bank FraudRead the Press Release
ROBERT PACKNETT, age 47, a resident of New Orleans, Louisiana, pled guilty as charged today before the U.S. District Judge Carl J. Barbier to a bill of information charging him with one count of bank fraud, announced United States Attorney Dana J. Boente.
According to court documents, PACKNETT was the owner of numerous residential properties throughout New Orleans. From July 2011 through March 2012, PACKNETT applied for at least 6 mortgages, refinanced mortgages, and commercial lines of credit from First NBC Bank for various properties. As part of the application process, PACKNETT had to detail his income so First NBC could determine whether he was a candidate for a refinanced mortgage and, if so, the interest rate for which he qualified. On all of his applications PACKNETT overstated the amount of rental income he received from his properties. In some cases, PACKNETT simply overstated the amount he received in rent. In others, he claimed that he was receiving rental income from properties when the properties were actually vacant. As a result of the false statements on just one of the applications to refinance his primary residence, PACKNETT received approximately $256,000 to which he was not entitled.
PACKNETT faces a maximum penalty of 30 years, followed by up to 5 years of supervised release, and a $250,000 fine. Sentencing in this matter has been scheduled for October 4, 2013, at 9:30 a.m.
This case was investigated by special agents of the Federal Bureau of Investigation with assistance from the New Orleans Office of Inspector General. The prosecution of this case is being handled by Assistant United States Attorney Jordan Ginsberg and Trial Attorney Hayden Brockett of the U.S. Department of Justice Tax Division.
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Randallstown Man Sentenced to over 7 Years in Prison for Bankruptcy Fraud and Filing False Tax ReturnsRead the Press Release
Failed to Report Income and Assets Totaling Over $740,000 and Attempted to Fraudulently Discharge
Debts of Over $1.1 Million Through Bankruptcy
Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Ricardo O. Curry II, age 43, of Randallstown, Maryland, today to 87 months in prison, followed by three years of supervised release for assisting in the filing of false tax returns, bankruptcy fraud, falsifying bankruptcy records and false testimony under oath at a bankruptcy proceeding. Judge Quarles also ordered Curry to pay restitution of $1,114,988.51 to the creditors in his bankruptcy case and $118,182 to the IRS. Curry was convicted by a federal jury on March 20, 2013 and has been detained since that time.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and U.S. Trustee Judy Robbins and the Baltimore Office of the United States Trustee Program, the Department of Justice component that supervises the administration of bankruptcy cases.
According to evidence presented at his three day trial, Curry worked for Peerless Real Estate Services, Inc., a North Carolina corporation that oversaw the sale of property in North Carolina, including a development which contained more than 2000 lots. Curry recruited at least 12 investors to purchase at least 23 lots in the development and he received referral fees based on these sales. In 2005, 2006, and 2007, respectively, Curry earned referral fees of $41,455, $43,200, and $330,546. Although Curry reported the income he received as a sales representative for a pharmaceutical company on his 2005, 2006, and 2007 tax returns, he failed to report these referral fees, totaling $415,201.
On March 12, 2009, Curry filed for Chapter 13 bankruptcy in the United States Bankruptcy Court for the District of Maryland. On April 21, 2009, Curry filed a Statement of Financial Affairs with the bankruptcy court, which reported the income he earned as a pharmaceutical sales representative for tax years 2005, 2006, and 2007, but failed to report the $415,201 he earned in referral fees from Peerless. Curry also failed to disclose his ownership interest in a home worth approximately $325,000. On July 28, 2009, Curry filed an Amended Statement of Financial Affairs, which again failed to disclose the $415,201 in referral fees, and his ownership interest in the home. On October 20, 2009, Curry testified under oath at meeting of the creditors, falsely stating that all of his assets were listed in his bankruptcy filing, when in fact, Curry knew that he had not reported the referral fees, nor his home ownership. Ultimately, Curry never provided documents to the trustee overseeing his bankruptcy case regarding either the referral fee income or the home, and as a result, on April 12, 2010, Curry’s attempt to discharge his debts through bankruptcy was denied.
United States Attorney Rod J. Rosenstein praised the IRS-CI, FBI and U.S. Trustee’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Gregory R. Bockin and David I. Sharfstein, who prosecuted the case.
Ramiro Nava-delgadillo Pleads Guilty to Illegal ReentryRead the Press Release
RAMIRO NAVA-DELGADILLO, age 33, a citizen of Mexico, pled guilty in federal court today before U. S. District Judge Jane Triche Milazzo to a one-count indictment charging him with illegal re-entry of a removed alien, announced U. S. Attorney Dana J. Boente.
According to court documents, NAVA admitted to being an alien who had previously been removed from the United States, was found in the United States, on April 10, 2013, without having obtained consent from the Secretary of the Department of Homeland Security to reapply for admission to the United States.
The indictment charging NAVA with illegal reentry also included a notice of sentencing enhancement based on his prior felony conviction. With the enhancement, the charge carries a maximum statutory penalty of 10 years imprisonment, a fine of $250,000, and 3 years of supervised release following any term of imprisonment. Sentencing for the defendant is scheduled for September 26, 2013 at 10:00 A.M.
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.
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Pulaski County, Ky. Sheriff’s Deputy Indicted for Federal Civil Rights ViolationsRead the Press Release
U.S. Attorney Kerry B. Harvey of the Eastern District of Kentucky, and Assistant Attorney General Thomas E. Perez of the Civil Rights Division, announced today that Stephen Molen, a Sheriff’s Deputy with the Pulaski County Sheriff’s Office in Pulaski County, Ky., was indicted by a federal grand jury on two counts of violating the civil rights of victims by using excessive force in October 2009 and October 2011.
Count one of the indictment alleges that on Oct. 2, 2009, Molen assaulted a victim identified in the indictment as “D.W.,” resulting in bodily injury. Count two of the indictment alleges that on Oct.7, 2011, Molen assaulted a victim identified in the indictment as “G.C.,” also resulting in bodily injury.
If Molen is convicted of these charges, he will face a statutory maximum punishment of 10 years in prison for each count.The investigation was conducted by the Louisville Division of the FBI. The case will be prosecuted by Assistant U.S. Attorneys Pat Molloy and Ron Walker of the Eastern District of Kentucky and Civil Rights Division Trial Attorney Ali Ahmad.
The charges set forth in an indictment are merely accusations and the defendant is presumed innocent until proven guilty.
Pulaski County, KY. Sheriff's Deputy Indicted for Federal Civil Rights ViolationsRead the Press Release
WASHINGTON, DC - U.S. Attorney Kerry B. Harvey of the Eastern District of Kentucky, and Assistant Attorney General Thomas E. Perez of the Civil Rights Division, announced today that Stephen Molen, a Sheriff’s Deputy with the Pulaski County Sheriff’s Office in Pulaski County, KY., was indicted by a federal grand jury on two counts of violating the civil rights of victims by using excessive force in October 2009 and October 2011.
Count one of the indictment alleges that on Oct. 2, 2009, Molen assaulted a victim identified in the indictment as “D.W.,” resulting in bodily injury. Count two of the indictment alleges that on Oct.7, 2011, Molen assaulted a victim identified in the indictment as “G.C.,” also resulting in bodily injury.
If Molen is convicted of these charges, he will face a statutory maximum punishment of 10 years in prison for each count.
The investigation was conducted by the Louisville Division of the FBI. The case will be prosecuted by Assistant U.S. Attorneys Pat Molloy and Ron Walker of the Eastern District of Kentucky and Civil Rights Division Trial Attorney Ali Ahmad.
The charges set forth in an indictment are merely accusations and the defendant is presumed innocent until proven guilty.
Portland, Ore. Couple Indicted on Charges Related to an Anti-gay AssaultRead the Press Release
Yesterday a federal grand jury in Portland, Ore., indicted George Allen Mason Jr., 23, and his wife, Saraya Sophia Lisa Gardner, 23, on charges related to the assault of a 26-year-old gay man who was walking his dog with his boyfriend on the streets of Hillsboro, Ore., which occurred because of animus against the victim’s sexual orientation.
Mason is charged with violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act that was enacted in October 2009. The indictment alleges that Mason struck the victim with a metal tool because of the victim’s actual or perceived sexual orientation, thereby causing bodily injury to the victim.
Gardner is charged with one count of obstruction of justice for knowingly and intentionally misleading Hillsboro Police Department (HPD) officers in statements she provided in connection with the investigation of Mason. The indictment alleges that Gardner lied about Mason’s whereabouts at the time HPD officers were searching for him and that she further misled HPD officers when she repeatedly changed her story as to the weapon that Mason used to strike the victim.
Mason faces a statutory maximum penalty of 10 years in prison. Gardner faces a statutory maximum penalty of 20 years in prison.
This case is being investigated by the Portland Division of the FBI in cooperation with HPD. It is being prosecuted by Assistant U.S. Attorney Hannah Horsley of the District of Oregon and Trial Attorney Fara Gold of the Civil Rights Division of the Department of Justice.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
Portland Couple Indicted on Charges Related to Anti-Gay AssaultRead the Press Release
PORTLAND, Ore. — A federal grand jury in Portland, OR, has indicted George Allen Mason, Jr., 23, and his wife, Saraya Sophia Lisa Gardner, also 23, on charges related to a the assault of a 26-year old gay man who was walking his pink-dyed poodle with his boyfriend on the streets of Hillsboro, a Portland suburb, which occurred because of animus against the victim’s sexual orientation.
Mason is charged with violating the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act that was enacted in October 2009. The indictment alleges that Mason struck the victim with a metal tool because of the victim’s actual or perceived sexual orientation, thereby causing bodily injury to the victim.
Gardner is charged with one count of obstruction of justice for knowingly and intentionally misleading Hillsboro Police Department (HPD) officers in statements she provided in connection with the investigation of Mason. The indictment alleges that Gardner lied about Mason’s whereabouts at the time HPD officers were searching for him and that she further misled HPD officers when she repeatedly changed her story as to the weapon that Mason employed to strike the victim.
Mason faces a statutory maximum penalty of ten years in prison. Gardner faces a statutory maximum penalty of twenty years in prison. Both defendants will appear before a U.S. Magistrate Judge at the Mark Hatfield Federal Courthouse at a time to be set in the near future.
This case is being investigated by the Portland Division of the FBI in cooperation with HPD. It is being prosecuted by Assistant U.S. Attorney Hannah Horsley for the District of Oregon and Trial Attorney Fara Gold of the Civil Rights Division of the Department of Justice.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
Owner of Avalanche Car Washes in Dallas-Fort Worth Area Is Sentenced to Six Months in Federal Prison and Six Months Home Confinement for Structuring Currency TransactionsRead the Press Release
DALLAS — Mohamdad Jabal was sentenced yesterday afternoon by U.S. District Judge Ed Kinkeade to six months in federal prison and six months home confinement, following his guilty plea in March 2013 to one count of structuring. According to the plea agreement filed in the case, Jabal has made full restitution, in the amount of $403,736, to the victims in the case prior to entering into the plea agreement with the government. Today’s announcement was made by U.S Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, Jabal owns two car washes in the Dallas-Fort Worth area under the name of Avalanche Wash, Inc., and currently has a third one under construction. He maintains two bank accounts related to his car wash business. Between March 15 and April 30, 2012, Jabal made 19 cash deposits for a total of $182,050 into his Avalanche Wash Inc. Interim Construction Account at First National Bank of Burleson. Each of these deposits ranged from $9,000 to $9,800 and many of the deposits were on consecutive days. Jabal admitted that he was aware of the $10,000 reporting requirement and purposefully kept his cash deposits below the requirement so he wouldn’t “raise a red flag.”
The investigation was conducted by Internal Revenue Service Criminal Investigation and prosecuted by Assistant U.S. Attorney Brian Poe.
North Texans Sentenced for Roles in A Drug Trafficking Organization That Mailed Large Quantities of Marijuana from DFW to St. CroixRead the Press Release
FORT WORTH, Texas — Three North Texans, who were convicted for their role in a drug trafficking operation that mailed large quantities of marijuana from the Dallas/Fort Worth (DFW) area to St. Croix, U.S. Virgin Islands, have been sentenced, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
This week, April Michelle Greene, 37, of Fort Worth, was sentenced to 78 months in federal prison following her guilty plea in November 2012 to one count of conspiracy to possess with intent to distribute a controlled substance.
Earlier this month, Neil Nick Rene, 37, of Duncanville, was sentenced to 151 months in federal prison following his guilty plea in October 2012 to one count of conspiracy to possess with intent to distribute a controlled substance and one count of conspiracy to launder monetary instruments. Defendant Carl Gayheart Schou, 48, pleaded guilty in November to the same offenses and is scheduled to be sentenced in October 2013.
Kareem Ambrose, 33, was sentenced on May 1, 2013, to 12 months in federal prison and a $1,000 fine following his guilty plea the previous month to one count of possession of a controlled substance.
According to documents filed in the case, over the course of the conspiracy from December 2009 until March 2012, Greene, Rene and Schou were involved in the sale and shipment of marijuana from the DFW area to buyers located in St Croix, in the U.S. Virgin Islands. In fact, Ambrose was stopped by law enforcement in St. Croix, in a vehicle that contained a package with 2.2 pounds of marijuana that had been mailed to him from North Texas.
Greene, Rene and Schou would mail parcels of marijuana, each weighing approximately two – five kilograms, from multiple post offices in DFW to buyers in St. Croix. Fictitious return addresses were used on the drug parcels to avoid detection. In return for the drug parcels, the buyers would mail the defendants parcels containing proceeds of the sales of the trafficked marijuana, most commonly in the form of U.S. Postal money orders. At times, in order to disguise the source of the proceeds of the marijuana trafficking, Rene and Schou would use false information in the return addresses and would mail the proceeds to third parties. Schou or Greene would then deposit the money orders into their personal bank accounts, or cash them at their member bank, a check cashing facility or a U.S. Postal facility.
This case was investigated by the U.S. Postal Inspection Service, Drug Enforcement Administration, U.S. Customs and Border Protection, Internal Revenue Service - Criminal Investigation and the U.S. Virgin Islands Police Department. Assistant U.S. Attorneys Joshua T. Burgess and John de la Garza are prosecuting.
Nedra Bell Sentenced for Katrina Related Fraud and Making False Statements to Housing Authority of New OrleansRead the Press Release
NEDRA BELL, age 40, a resident of New Orleans, was sentenced today in federal court by U. S. District Judge Lance M. Africk to serve 5 years probation to include one year of home confinement, after pleading guilty to theft of government funds, and to making false statements to an agency of the United States, announced U. S. Attorney Dana J. Boente. In addition, BELL has been ordered to pay $113,252.97 in restitution to the United States Department of Housing and Urban Development (“HUD”).
According to court documents, BELL applied for a Louisiana Road Home Program (“LRHP”) grant for property she was renting from her brother at the time of Hurricane Katrina. BELL applied for the grant on behalf of her brother, falsely stating that he was residing in the property at the time of Hurricane Katrina. As a result of her false statements in her application, BELL fraudulently received approximately $54,372 from HUD. BELL is also convicted of making false statements to a federal agency on a re-certification application and HUD Income Questionnaire to the Housing Authority of New Orleans (“HANO”) for HUD rental subsidized housing under its Section 8 program. BELL denied that she received self-employment income or owned property, when in truth and in fact, she received income from her business as a hair stylist and owned property. As a result of BELL’s misrepresentations, she received a total of $58,881 in rental assistance from HUD.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
The case was investigated by agents with the U.S. Department of Housing and Urban Development, Office of Inspector General, and was prosecuted by Assistant United States Attorney Julia K. Evans.
Multi-Agency Violent Crime InitiativeRead the Press Release
110 Arrested During Multiagency, Violent Crime Initiative from April to June 2013
TULSA, Okla. — United States Attorney for the Northern District of Oklahoma Danny C. Williams Sr., joined by members of federal, state and local law enforcement agencies and community counseling services, today announced a first series of arrests as the result of the Violent Crime Initiative to remove violent offenders from the 61st Street and Peoria Avenue area.
The joint effort of federal and state law enforcement resulted in the arrest of 110 offenders.
The Violent Crime Initiative began in April and will continue with ongoing operations until the streets and community are safe for all citizens. Violent Crime Initiative partners include the Tulsa Police Department, Tulsa County District Attorney’s Office, U.S. Marshals Service, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Federal Bureau of Investigation (FBI), Department of Housing and Urban Development-Office of Inspector General, U.S. Probation Office, Tulsa County Juvenile Bureau, and Inspira Mentoring and Counseling.
“The U.S. Attorney’s Office will continue to work closely in a combined effort with federal, state and local law enforcement agencies to fight violent crime to improve the quality of life for the City of Tulsa and the Northern District of Oklahoma,” said U.S. Attorney Williams. “The U.S. Attorney’s Office is committed to strengthening these partnerships and developing new initiatives that safeguard our community from harm.”Tulsa County District Attorney Tim Harris said, “The prosecution of violent crime is the Tulsa County District Attorney’s Office number one priority. Individuals or groups of individuals that commit violent crimes are placed on notice. We will find you, we will arrest you and we will prosecute you. We will continue our cooperation in collaboration with all law enforcement partners at both the state and federal level to accomplish our goal of making Tulsa a safer place.”
The Violent Crime Initiative end-goals are to create safe neighborhoods by prosecuting criminals. Second, increase the potential for economic and business growth in the area by reducing crime, and third, to address the socio-economic component of stopping the cycle of crime by assisting the offenders through individual counseling.
Multi-Agency Enforcement Operation in New Mexico Significant Part of Nationwide Synthetic Drug TakedownRead the Press Release
ALBUQUERQUE – During a press conference this afternoon, federal, state and local officials announced the results of the multi-agency enforcement operation in New Mexico which was part of yesterday’s DEA-led enforcement operations in 35 states targeting the upper echelon of dangerous designer synthetic drug trafficking organizations that have operated without regard for the law or public safety.
“Project Synergy” which was coordinated by DEA’s Special Operations Division, began in Dec. 2012. Leading up to yesterday’s nationwide takedown, Project Synergy included 75 arrests, the seizure of nearly $15 million in cash and assets, and the seizure of more than 1550 kilograms of synthetic drugs at express consignment facilities. According to DEA, during yesterday’s nationwide takedown, law enforcement executed more than 150 arrest warrants and 375 search warrants in 35 states, 49 cities and five countries.
New Mexico played a significant role in Project Synergy that involved a multi-agency investigation by the Albuquerque office of the DEA, the Albuquerque Police Department, the McKinley County Sheriff’s Office, the Grants Police Department and the Region II Narcotics Task Force that began in Nov. 2012. The investigation, which was code-named “Operation Old Spice, New Money,” initially targeted synthetic cannabinoid (“Spice”) distribution in Cibola, McKinley and San Juan Counties and expanded to Bernalillo County. During yesterday’s enforcement operation, officers arrested four individuals on federal charges and executed 28 federal search warrants and 22 seizure warrants resulting in the seizure of more than 100,000 retail sale packets of Spice and 15 pounds of bulk Spice, more than $1.2 million from bank accounts, more than $135,000 in cash, 18 vehicles and 13 firearms.
The results of the investigation were announced by U.S. Attorney Kenneth J. Gonzales, Joseph M. Arabit, Special Agent in Charge of the El Paso Division of the Drug Enforcement Administration (DEA), U.S. Marshal Conrad E. Candelaria, Carol K.O. Lee, Special Agent in Charge of the Albuquerque Field Division of the FBI, Chief Kyle Westall of the Farmington Police Department, Bernalillo County Sheriff Dan Houston, McKinley County Sheriff Felix T. Begay, San Juan County Sheriff Ken Christesen, and Fire Marshal Victor Padilla of the Albuquerque Fire Department.
In announcing New Mexico’s role in yesterday’s nationwide takedown, U.S. Attorney Gonzales said, “Synthetic cannabinoid products, commonly known as Spice, or packaged as purported incense or potpourri, are the latest dangerous designer drugs to reach our neighborhoods. These products have proven to be a public health hazard with serious and sometimes deadly consequences. It is imperative that everyone, especially unwary young people, realize that Spice is not for sport, and we will prosecute those who know the dangers but push it for profit behind a facade of a legitimate business. I thank DEA and its federal, state and local partners here in New Mexico for working very hard not just to eradicate these dangerous drugs from our community but also for their efforts to educate the public about the dangers they present, particularly for our young people.”
“The abuse of dangerous synthetic drugs has become a nationwide concern. DEA, in collaboration with our law enforcement partners, will continue to identify, investigate, arrest, and seize the illicit assets of those who manufacture and deal in these substances,” said DEA Special Agent in Charge Joseph M. Arabit. “Individuals, retailers and organizations that continue to circumvent the law and engage in the trafficking of these dangerous drugs should be on notice that law enforcement agencies will utilize all available resources to hold them accountable for their actions.”
The individuals arrested yesterday are: Khaled Assi, 39, of Gallup, N.M.; Mohammed Kayed Assi, 26, of Farmington, N.M.; Nael Assi, 41, of Gallup, N.M.; and Amro Assi, 33, of Grants, N.M. Mohammed Assi is a United States citizen. Khaled Assi is a Jordanian national pending an immigration review to continue to reside legally in the United States; and Nael and Amro Assi are Jordanian nationals who are legal permanent residents of the United States. All four defendants made their initial appearances in federal court this morning and are temporarily detained pending detention hearings scheduled for tomorrow.
Khaled Assi, Mohammed Assi and Nael Assi are charged with conspiracy to distribute a controlled substance analogue in an indictment filed on June 25, 2013. According to the indictment, these three defendants conspired to distribute Spice in San Juan and McKinley Counties from Jan. 2012 through April 2013. The indictment also charges Khaled Assi with distributing Spice on Feb. 14, 2012 in San Juan County. Amro Assi is charged with conspiracy and distribution of a controlled substance analogue in a criminal complaint filed on June 26, 2013. If convicted, each defendant faces a maximum penalty of 20 years in prison and Khaled Assi, Nael and Amro Assi will be deported after serving their prison sentences.
During yesterday’s enforcement operation, 15 search warrants were executed at the following businesses: ABQ Shop, From Rags 2 Riches II, WARZONE aka Rags 2 Riches III, The Moon Smoke Shop, Pyros Smoke Shop and Pyros Smoke Shop 2 in Albuquerque, N.M.; VIP Smoke Shop and Rollet Smoke Shop in Kirtland, N.M.; Rollet Smoke Shop #1 in Aztec, N.M.; Cohiba Cigar Shop and Up N Smoke in Farmington; Fu King Smoke Shop #1, Fu King Smoke Shop #2, Fu King Smoke Shop #3, and Fu King Smoke Shop #4 in Gallup, N.M.; Santa Fe Smoke Shop in Grants, N.M., and Lava Lounge in Las Cruces, N.M. Search warrants also were executed at six residences in Albuquerque, three residences in Gallup, two residences in Farmington and one residence in Grants. Seizure warrants were executed on 21 checking accounts and one savings account.
“The joint federal and state multi-agency investigation that culminated in today’s charges demonstrates the seriousness and scope of the problem and the strength of our resolve to eradicate the threat posed by these synthetic drugs, said U.S. Marshal Conrad E. Candelaria. “Synthetic marijuana, its producers, distributors and sellers have been added to our list of targets on our continuing war on drugs and the U.S. Marshals Service is proud to support that effort.”
FBI Special Agent in Charge Lee said, “Many communities in New Mexico are safer today because of the close collaboration and teamwork demonstrated by the federal, state and local law enforcement agencies involved in this operation. I would like to congratulate the DEA for their leadership and also thank the FBI Special Agents and Professional Support staff from the Gallup and Farmington Resident Agencies who helped make this operation a success.”
Farmington Police Chief Kyle Westall added, “The regional distribution of synthetic cannabinoids has seen an exponential increase in our community in the past few years. Without the help of the DEA it would have been impossible for us to inhibit the flow of these dangerous drugs.”
“Synthetic drugs have been an increasing problem within McKinley County for some time now,” said McKinley County Sheriff Felix T. Begay. “We have been receiving countless complaints from both citizens and the business community within McKinley County concerning the sales and the use and abuse of spice. We are proud to have been involved in this operation and we applaud the Drug Enforcement Administration for their outstanding dedication to our community.”
Bernalillo County Sheriff Dan Houston said, “We at the Bernalillo County Sheriff’s Office very much value our partnerships with our local federal agencies. In fighting crime, we know without a doubt that the more we work together, the harder it is for criminals to operate. We are proud to have been a part of this significant endeavor.”
The cases resulting out of “Operation Old Spice, New Money” are being prosecuted by Assistant U.S. Attorney Samuel A. Hurtado and related forfeiture proceedings are being handled by Assistant U.S. Attorneys Stephen R. Kotz and Cynthia L. Weisman. The cases were investigated by the Albuquerque Office of the DEA, the Albuquerque Police Department, the McKinley County Sheriff’s Office, the Grants Police Department, and the Region II Narcotics Task Force. The following agencies participated in yesterday’s enforcement operation: the Albuquerque, Farmington and Gallup offices of the FBI, the U.S. Marshals Service, the U.S. Fish & Wildlife Service, the U.S. Border Patrol, the New Mexico State Police, the Bernalillo County Sheriff’s Office, Albuquerque Fire Department, the Corrales Police Department, the Farmington Police Department, the Gallup Police Department, the San Juan County Sheriff’s Office, and the Region I Narcotics Task Force.
“Operation Old Spice, New Money” was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program. OCDETF is a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. The investigation is continuing.
Background on Designer Synthetic Drugs
Designer synthetic drugs are often marketed as herbal incense, potpourri, bath salts, jewelry cleaner, or plant food, and have caused significant abuse, addiction, overdoses, and emergency room visits. Those who have abused synthetic drugs have suffered vomiting, anxiety, agitation, irritability, seizures, hallucinations, tachycardia, elevated blood pressure, and loss of consciousness. They have caused significant organ damage as well as overdose deaths.
Smokable herbal blends marketed as being “legal” and providing a marijuana-like high have become increasingly popular, particularly among teens and young adults, because they are easily available and, in many cases, they are more potent and dangerous than marijuana. These products consist of plant material that has been impregnated with dangerous psychoactive compounds that mimic THC, the active ingredient in marijuana. Synthetic cannabinoids are sold at a variety of retail outlets, in head shops and over the Internet. Brands such as “Spice,” “K2,” “Blaze,” and “Red X Dawn” are labeled as incense to mask their intended purpose. In 2012, a report by the Substance Abuse and Mental Health Services Administration (SAMHSA) reported 11,406 emergency department visits involving a synthetic cannabinoid product during 2010. In a 2013 report, SAMHSA reported the number of emergency department visits in 2011 involving a synthetic cannabinoid product had increased 2.5 times to 28,531. The American Association of Poison Control Centers reported 5,205 calls related to human exposure of synthetic cannabinoids.
For the past several years, there has also been a growing use of, and interest in, synthetic cathinones (stimulants/hallucinogens) sold under the guise of “bath salts” or “plant food.” Marketed under names such as “Ivory Wave,” “Purple Wave,” “Vanilla Sky,” or “Bliss,” these products are comprised of a class of dangerous substances perceived to mimic cocaine, LSD, MDMA, and/or methamphetamine. Users have reported impaired perception, reduced motor control, disorientation, extreme paranoia, and violent episodes. The long-term physical and psychological effects of use are unknown but potentially severe. The American Association of Poison Control Centers reported 2,656 calls related to synthetic cathinone (“bath salts”) exposures in 2012 and overdose deaths have been reported as well.
These products have become increasingly popular, particularly among teens and young adults and those who mistakenly believe they can bypass the drug testing protocols of employers and government agencies to protect public safety. They are sold at a variety of retail outlets, in head shops, and over the Internet. However, they have not been approved by the Food and Drug Administration (FDA) for human consumption or for medical use, and there is no oversight of the manufacturing process.
Controlled Substance Analogue Enforcement Act
While many of the designer drugs being marketed today that were seized as part of Project Synergy are not specifically prohibited in the Controlled Substances Act (CSA), the Controlled Substance Analogue Enforcement Act of 1986 (AEA) allows many of these drugs to be treated as controlled substances if they are proven to be chemically and/or pharmacologically similar to a Schedule I or Schedule II controlled substance. A number of cases that are part of Project Synergy will be prosecuted federally under this analogue provision, which is being utilized to combat these new and emerging designer drugs.
DEA has used its emergency scheduling authority to combat both synthetic cathinones (the so-called “bath salts” with names like Ivory Wave, etc.) and synthetic cannabinoids (the so-called incense products like K2, Spice, etc.), temporarily placing several of these dangerous chemicals into Schedule I of the CSA. Congress has also acted, permanently placing 26 substances into Schedule I of the CSA in 2012.
For more information about this operation and synthetic designer drugs, visit www.dea.gov<http://www.dea.gov>.
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