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26 June 2013
Former Closing Attorney Sentenced to Two Year in Prison for Wire Fraud in Mortgage Loan SchemeRead the Press Release
BIRMINGHAM – U.S. District Judge Karon O. Bowdre today sentenced a former Birmingham real estate lawyer to two years in prison for wire fraud in connection with a mortgage fraud scheme that exceeded $1 million, announced U.S. Attorney Joyce White Vance.
KELVIN LEONARD DAVIS, 42, pleaded guilty in February to four counts of wire fraud for knowingly submitting false mortgage documents and statements to various lenders in order to obtain approval for mortgage loans. At the time of the fraudulent transactions, from October 2007 to January 2012, Davis served as the closing attorney on each of the fraudulent loan transactions.
As part of Davis’ plea agreement with the government, he agreed to forfeit $269,335 to the government as proceeds of the illegal activity. Judge Bowdre ordered that forfeiture as part of Davis’ sentence.
According to the plea agreement, Davis carried out his fraud as follows:
He submitted false statements with loan documents in order to obtain approval for mortgage loans that would, otherwise, not have been approved. In many instances, Davis, while serving as closing attorney, would use his trust account to provide money to the borrower when a mortgage loan was closing. Davis would recover the money by subtracting the amount he provided from the proceeds he issued to the seller. Davis also would assess the seller a fee, ranging from $1,000 to $6,000, and make checks for the fee payable to Peaceful Valley Homes, a corporation he had formed. Total losses to the various lenders as a result of Davis’ fraud exceeded $1 million.
The FBI and the Department of Housing and Urban Development, Office of Inspector General, investigated the case. Assistant U.S. Attorney Robin Beardsley Mark prosecuted the case.
Former Alabama Corrections Officer Convicted of Federal Civil Rights Offenses and Obstruction of Justice for Beating Death of an InmateRead the Press Release
The Justice Department announced that yesterday a federal jury convicted Michael Smith, 38, a former corrections officer of the Alabama Department of Corrections, of two civil rights violations and five obstruction of justice-related violations in connection with the beating death of former inmate Rocrast Mack.
The incident occurred at Ventress Correctional Facility in Clayton, Ala., on Aug.4, 2010, and at the time of the incident, Smith was a lieutenant with supervisory authority over other officers on his shift. The jury convicted Smith of assaulting Mack with a baton in an office in the prison and of assaulting Mack again several minutes later in the medical unit by repeatedly stomping on Mack’s head. Mack died the following day in a Montgomery, Ala., hospital.
Scottie Glenn, another former corrections officer at Ventress, pleaded guilty on Nov.18, 2011, in U.S. District Court for the Middle District of Alabama to one count of violating the civil rights of Mack for his role in the incident and to one count of conspiring with other corrections officers to cover up the beatings. Matthew Davidson, another former corrections officer, pleaded guilty on Jan. 15, 2013, to two civil rights violations and one count of conspiring with other officers to cover up the beatings.
Smith was remanded to the custody of the U.S. Marshals Service pending sentencing. The sentencing hearing is yet to be scheduled. Smith faces a maximum potential penalty of life in prison.
"The jury found that defendant Smith, a high ranking official at Ventress Prison, violently caused the death of an inmate entrusted to his care,” said Deputy Assistant Attorney General for the Civil Rights Division Roy L. Austin Jr. “Through its verdict, the jury has vindicated the principle, enforced by the Department of Justice, that no person is above the law. We hope that today’s verdict brings some measure of solace to the family of Rocrast Mack.”
This case was investigated by the Mobile, Ala., Division of the FBI, in partnership with the Alabama Bureau of Investigation, and was prosecuted by Trial Attorney Patricia Sumner of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Jerusha Adams of the U.S. Attorney’s Office for the Middle District of Alabama.Federal Grand Jury in Fort Wayne Returns IndictmentRead the Press Release
Fort Wayne, INCThe United States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returned the following Indictment on June 26, 2013: Darnell Bontempo, 30, of Fort Wayne, Indiana was charged in a single count Indictment with being a violent felon in possession of body armor on or about May 31, 2013. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Northeast Indiana Federal Bank Robbery Task Force. This case has been assigned to and will be prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
##END##Federal Escapee Sentenced for Drug Trafficking; Other ChargesRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Joseph Mitchell, 36, of Rochester, N.Y., who was convicted of conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine and 280 grams or more of cocaine base, possession of a firearm in furtherance of a drug trafficking crime, money laundering conspiracy and escape, was sentenced to 300 months in prison by U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Jennifer Noto, who handled the case, stated that the Joseph Mitchell participated in a drug trafficking conspiracy along with his two younger brothers, Jamar and Jerrod Mitchell. According to the government’s investigation, between 2008 and March 2011, the defendant was responsible for the large scale distribution of significant quantities of cocaine and cocaine base in the Rochester and Elmira, N.Y. areas. Several search warrants executed at the time of the defendant’s arrest led to the recovery of over $500,000 in cash that had been secreted in a hidden trap in the base of a fish tank at Joseph Mitchell's residence, as well as a loaded handgun.
Joseph Mitchell was ordered detained pending trial on his narcotics charges. Thereafter, Mitchell orchestrated an elaborate jail escape, which involved multiple individuals and the smuggling of contraband into the Monroe County Jail, including a cellular telephone and saw blades that were secreted inside the binding of a bible. Mitchell utilized the saw blades to cut the jail bars on the window of his cell and ultimately escaped with another inmate, Eddie Palmer, by breaking the exterior window and jumping to the ground.
Law enforcement captured Mitchell approximately one week after his escape in the area of Sodus, Wayne County. The individuals who assisted Mitchell in his escape were also arrested and convicted federally, including Eddie Palmer, Lakesia Binion, and Mathias Smith.
In sentencing the defendant to 25 years in prison, Judge Geraci referred to Joseph Mitchell a "drug kingpin," who "poisoned the community" with large amounts cocaine. Judge Geraci also admonished the defendant for involving his two younger siblings in his drug trafficking activities. Jerrod and Jamar Mitchell are schedule to be sentenced on July 2, 2013. Palmer, who has been convicted of assisting in the escape, will be sentenced on July 9, 2013.
The sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Agency, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, officers of the Rochester Police Department, under the direction of Chief James Sheppard, the United States Marshals Service, under the direction Marshal Charles Salina and investigators of the Monroe County Sheriff's Office under the direction of Sheriff Patrick O'Flynn.Executive Director of Non-Profit Pleads Guilty to Wire Fraud, Admits Using More Than $200,000 in Grants for Personal Use- Used Money Meant for Youth Programs for Gambling, Other Personal Expenses-Read the Press Release
WASHINGTON - Keely E. Thompson Jr., 47, executive director of Keely’s District Boxing and Youth Center, pled guilty today to a federal charge of wire fraud stemming from a scheme in which he spent District of Columbia and private grant funds, meant for youth programs and activities, on personal goods, entertainment, and services.
The guilty plea was announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Charles J. Willoughby, Inspector General for the District of Columbia.
Thompson, of Accokeek, Md., entered the plea in the U.S. District Court for the District of Columbia. The Honorable Emmet G. Sullivan scheduled sentencing for Oct. 9, 2013. The charge carries a statutory maximum of 20 years in prison as well as financial penalties. Under federal sentencing guidelines, the parties have agreed that the applicable range for the offense is a prison term of 27 to 33 months and a fine between $6,000 and $60,000. The plea agreement calls for Thompson to pay $205,000 in restitution to the entities that granted the misspent funds. It also calls for the forfeiture of a money judgment in the amount of at least $205,000.
According to a statement of offense, signed by the defendant as well as the government, Keely’s District Boxing and Youth Center was a non-profit organization based at locations in Northwest and Northeast Washington. The operations were funded with grant money. The funds were to be used to carry out the boxing program’s mission of promoting youth development.
Thompson admitted improperly using $205,000 in funds. The spending included $105,000 for gambling at a casino in Atlantic City, N.J. and on a cruise ship; $50,000 for meals at restaurants, purchases at grocery stores, concerts, speeding tickets and clothing, and an additional $50,000 on other unauthorized expenditures.
“Keely Thompson squandered tax dollars, meant to help children, at the casino,” said U.S. Attorney Machen. “He lied to secure public and charitable funds that he stole for his own frivolous entertainment. This case echoes the message we have delivered time and time again - criminals who rob the taxpayers to satisfy their own greed will be pursued and prosecuted to the fullest extent of the law.”
“Today, Mr. Thompson admitted to taking money meant to improve the lives of youth in the District of Columbia and instead using it to finance his own lifestyle,” said Assistant Director in Charge Parlave. “Such corrupt behavior is unacceptable, and those who commit such acts will be held accountable."
Thompson was arrested in November 2010 and has been free on personal recognizance while the case remained pending. In November 2012, a federal grand jury returned an indictment charging him and his wife, Bianca Thompson, the non-profit’s deputy director, with wire fraud and other offenses. The plea agreement in Keely Thompson’s case calls for the indictment against Bianca Thompson to be dismissed at the time of his sentencing.
In announcing the plea, U.S. Attorney Machen, Assistant Director in Charge Parlave, and Inspector General Willoughby commended the efforts of those who worked on the case from the FBI’s Washington Field Office and the District of Columbia Inspector General’s Office. They also expressed appreciation for those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Nicole Wattelet, Krishawn Graham and Diane Hayes, and Victim/Witness Advocate Yvonne Bryant, and Jelahn Stewart, Chief of the Victim Witness Assistance Unit. Finally, they praised the work of Assistant U.S. Attorneys Seth B. Waxman and Lionel André, who are prosecuting the case.
13-229East St. Louis Woman Sentenced for Cocaine DistributionRead the Press Release
Shannan C. Lynch, 44, of East Saint Louis, IL, was sentenced on June 26, 2013, in federal district court, in East St. Louis, on one count of possession with intent to distribute cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Lynch was sentenced to 18 months in prison. When she completes her prison sentence, she will then be placed on supervised release for three years. Lynch, who previously pled guilty on February 27, 2013, to possessing 6 ounces of cocaine in East St. Louis on November 30, 2011. At her change of plea hearing in February, Lynch admitted that she had intended to sell the cocaine which police seized from inside Lynch’s shirt. Police also seized a digital scale from Lynch.
A co-defendant of Lynch, Lucille G. Brim, was sentenced on June 19, 2013, to 57 months in prison for the same offense.
The investigation which resulted in Lynch’s conviction was conducted by the Metropolitan Enforcement Group of Southwestern Illinois, the St. Clair County Sheriff’s Office, and the Drug Enforcement Administration.
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Disbarred Canadian Attorney Pleads Guilty to Unclaimed Funds Fraud Scheme in CincinnatiRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – L. Gino Boggia, 63, of Quebec, Canada pleaded guilty in U.S. District Court to engaging in a scheme to defraud a local bank in connection with dormant bank account funds.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation Cincinnati Field Office (FBI) announced the plea entered today before Chief U.S. District Judge Susan Dlott.
According to court documents, Boggia is a disbarred Canadian attorney who engaged in two related fraud schemes in the Southern District of Ohio to attempt to fraudulently acquire funds of dormant, unclaimed bank accounts that have been escheated (turned over) to the state of Ohio by financial institutions.
In the first scheme in May 2003, Boggiafalsely claimed to represent the account holder who was hospital-bound and in urgent need of surgery with life-threatening injuries. Further investigation found that the client Boggia claimed to represent had died 20 years earlier. In the second scheme Boggiafalsely claimed to represent a creditor of the account holder who was seeking to obtain a judgment against the account holder.
Like the first scheme, the attempted fraud was discovered before any funds were paid out. The amount of dormant account funds Boggia fraudulently attempted to obtain in this second scheme, which included the amount the dormant funds plus claimed accrued interest over several years, totaled $1,310, 670.06.
Boggia was indicted in Cincinnati in 2007. He was extradited from Canada earlier this year following completion of a sentence there on similar charges.
Boggia pleaded guilty to one count of bank fraud. The plea agreement includes an agreed-to sentence of 60 months incarceration. The agreed sentence also proposes to resolve a pending supervised release violation arising out of Boggia’s prior federal conviction in 2001 for a similar fraud in the Southern District of California. Boggia also agrees to pay restitution of $247,159.25 representing the loss caused by Boggia’s conduct in a similar scheme in Pennsylvania. The court will review the plea agreement before making a decision on whether or not to accept the terms.
U.S. Attorney Stewart commended the investigation by the FBI and Senior Litigation Counsel Anne Porter, who is representing the United States in the case.
Dancing Bull Fischer Pleads Guilty to Second Degree Murder and Assault with Intent to Commit MurderRead the Press Release
United States Attorney Brendan V. Johnson announced that Dancing Bull Fischer, age 24, of Wagner, South Dakota appeared before U.S. District Judge Karen E. Schreier on June 26, 2013 and pled guilty to the charges of Second Degree Murder and Assault with Intent to Commit Murder.
The maximum penalty upon conviction is life imprisonment, a $250,000 fine, or both; 5 years of supervised release; and $100 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on November 27, 2012 when Dancing Bull Fischer shot Anthony Fischer, Sr. at close range killing him, and also shot and wounded Dominic Fischer while at a house party in the Wagner area.
The investigation was conducted by the Yankton Sioux Tribe Law Enforcement Services, Bureau of Indian Affairs Law Enforcement Services, the South Dakota Division of Criminal Investigation, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Thomas J. Wright.
A presentence investigation was ordered and a sentencing date has been set for September 23, 2013. The defendant remains in the custody of the U.S. Marshal pending sentencing.
Dallas Man Who Trafficked in Counterfeit Pharmaceutical Drugs Is Sentenced to 37 Months in Federal Prison and Ordered to Pay $633,000 in RestitutionRead the Press Release
DALLAS — Charles Anthony Jones, 48, of Dallas, was sentenced today by U.S. District Judge Barbara M. G. Lynn to 37 months in federal prison and ordered to pay $633,019 in restitution to Pfizer, Bayer and Eli Lilly for trafficking in counterfeit pharmaceutical drugs. Specifically, Jones pleaded guilty in November 2012 to one count of aiding and abetting the trafficking of counterfeit goods. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to plea papers filed in the case, on March 2, 2012, an undercover police officer texted Jones and asked Jones if he could meet him the following week in the neighborhood of a hotel in Irving, Texas. (Jones had previously sold the undercover officer pharmaceutical drugs to treat erectile dysfunction.) On March 6, 2012, the officer texted Jones and arranged a meeting to purchase a 30-count bottle of “Cialis” the following day for $150. The next day, Jones delivered a bottle marked “Cialis” that contained 30 20mg tablets to the undercover officer in exchange for $150. The bottle was marked with what appeared to be the genuine Cialis trademark and the bottle was clearly marked “PRESCRIPTION ONLY MEDICINE.”
Jones has been in custody since his arrest on August 22, 2012, on an indictment alleging that he and other unnamed individuals imported pharmaceutical drug products and packaging that bore the trademarks of certain prescription pharmaceuticals used to treat erectile dysfunction without the drug manufacturer’s authorization, and then resold the drugs to the public using the Internet to facilitate the sales. Jones was never licensed by the FDA or the Texas Health and Human Services Commission to distribute pharmaceutical drugs.
The investigation was conducted by the Food and Drug Administration (FDA) Office of Criminal Investigations (FDA-OCI) and the Irving Police Department. Assistant U.S. Attorney Jason Schall was in charge of the prosecution.
Dallas Man Sentenced to 60 Months in Federal Prison for Possessing Child PornographyRead the Press Release
FORT WORTH, Texas — Robert A. Steffens, 60, of Dallas, was sentenced today by U.S. District Judge Terry R. Means to 60 months in federal prison, following his guilty plea in November 2012 to one count of possession of child pornography. Judge Means ordered that Steffens surrender to the Bureau of Prisons on July 22, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, last summer, a laptop computer containing child pornography was turned in to the Fort Worth Police Department. It was determined that the laptop belonged to Steffens. Pursuant to a search warrant, the contents of the laptop were searched and child pornography was found.
In late August 2012, after being contacted by law enforcement, Steffens met with an officer at the Fort Worth Police Department and brought another laptop computer and external drive with him to the meeting. After obtaining a state search warrant for both, a forensic examination revealed both items contained child pornography. Steffens admitted that he had sought out child pornography on the Internet using search terms. He also admitted that he had deleted the images on the laptop and the external drive before bringing them in to the officer.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the Fort Worth Police Department, with assistance from U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Assistant U.S. Attorney Aisha Saleem prosecuted.
Cleveland Heights Man Sentenced to 30 Years in Prison for Bank RobberiesRead the Press Release
A Cleveland Heights man was sentenced to 30 years in priso for seven counts bank robberies and attempting an eighth last year said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.
Kevin Walcott, age 40, previously plead guilty to the seven counts of bank robbery and one count of attempted bank robbery. He got nearly $13,000 from the robberies on the East Side of Cleveland, according to court documents.
“This defendant robbed more than a half-dozen banks during a month-long spree,” Dettelbach said. “Each of these incidents put people at risk.”
Anthony said: “The valuable partnership between the public, local law enforcement and the FBI helped put a stop to this string of bank robberies. The FBI commends the attentive citizens that assisted in bringing Kevin Walcott to justice.”
The robberies (all in 2012) are as follows:
Oct. 26: Dollar Bank, 2200 Warrensville Center Road, University Heights, $2,470.
Nov. 1: Ohio Savings Bank, 2066 Lee Road, Cleveland Heights, $690.
Nov. 2: PNC Bank, 10900 Lorain Road, Cleveland, $2,194.
Nov. 5: Citizens Bank, 5710 Mayfield Road, Lyndhurst, $1,021.
Nov. 8: Key Bank, 911 East 185th Street, Cleveland, $3,660.
Nov. 13: Huntington Bank, 920 East 185th Street, Cleveland, $800.
Nov. 15: Huntington Bank, 20601 Fairmount Blvd., Shaker Heights, $2,069.
Attempted: Nov 21: PNC Bank, 20711 Chagrin Blvd. Shaker Heights.
Walcott was arrested shortly after the attempted robbery of PNC Bank. According to court documents, Shaker Heights police found a handwritten note on him that read, in part: “I have a Gun and a Police Radio If I SEE Police or hear the ALARM you Die First If I don’t make it out you Die First Give me all your 100.00 Both Drawer’s 50.00 20.00 I sEE Bait MonEY 10.00 you Die.”
This case was prosecuted by Assistant United States Attorneys Margaret A. Sweeney and Phillip J. Tripi, following investigation by the Federal Bureau of Investigation and Shaker Heights Police Department.
Carlos Danilo Menjivar-Rojas Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on June 26, 2013, before U.S. District Judge Donald W. Molloy, CARLOS DANILO MENJIVAR-ROJAS, a 37-year-old resident of Riverton, Wyoming, was sentenced to a term of:
Prison: 168 months
Special Assessment: $100
Supervised Release: 5 years
MENIJIVAR-ROJAS was sentenced in connection with his guilty plea to conspiracy to possess with the intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
In the spring of 2011, Eastern Montana HIDTA agents began performing electronic surveillance on MENIJIVAR-ROJAS (a/k/a "Chico"), an El Salvador National living in Billings. MENIJIVAR-ROJAS previously resided in northern California.
In June of 2011, MENIJIVAR-ROJAS was arrested for immigration violations. In early August of 2011, MENIJIVAR-ROJAS posted a bond to be released from ICE custody and returned to Billings.
In May of 2011, law enforcement learned the identity of several individuals that were distributing methamphetamine for MENIJIVAR-ROJAS. One individual interviewed by law enforcement admitted to selling methamphetamine for MENIJIVAR-ROJAS for three or four months. This individual saw MENIJIVAR-ROJAS with 8 or 9 pounds of methamphetamine in coffee cans in the back of his black Cadillac. MENIJIVAR-ROJAS charged the individual $1,200 for an ounce of methamphetamine. Additional witnesses linked MENIJIVAR-ROJAS to the distribution of numerous pounds of methamphetamine. Law enforcement corroborated the information about the individuals distributing for MENIJIVAR-ROJAS through searches of cellular telephones, recorded jail calls, and controlled purchases of methamphetamine.
When MENIJIVAR-ROJAS was arrested for immigration violations, his wife Dawn Menjivar and Armando Hernandez-Vaca continued to distribute methamphetamine to his sources and to collect drug debts on his behalf. Between the time of his arrest and the time of his release, MENIJIVAR-ROJAS was in daily contact with Dawn Menjivar. MENIJIVAR-ROJAS was giving Dawn Menjivar directions on who to collect money from, as well as who to "deal with."
Law enforcement learned through the investigation that MENIJIVAR-ROJAS distributed methamphetamine in Billings from May 2010 until late January of 2012. The conspiracy involved over 500 grams of methamphetamine.
Dawn Menijivar and Hernandez-Vaca pled guilty to federal charges.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that MENIJIVAR-ROJAS will likely serve all of the time imposed by the court. In the federal system, MENIJIVAR-ROJAS does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Billings Big Sky Safe Streets Task Force.
Buffalo Man Pleads Guilty to Drug Conspiracy ChargeRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Juan Montanez, 47, of Buffalo, NY., pleaded guilty before U.S. District Chief Judge Richard J. Arcara, to conspiracy to distribute, and to possess with intent to distribute, heroin and cocaine. The charge carries a maximum penalty of 20 years in prison, a $1,000,000 fine, or both.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that Montanez was one of three defendants arrested on March 6, 2012 after law enforcement officers executed a search warrant at a residence in Buffalo. Officers seized heroin, cocaine, ammunition, and drug paraphernalia.
Defendant Erick Joel Reyes Barretto was convicted of conspiracy to possess with intent to distribute heroin and cocaine and was sentenced to 60 months in prison in April 2013. Pascual Giovanny Navarro Gonzalez is scheduled to go to trial on August 6, 2013.
The sentencing is the culmination of an investigation on the part of Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard, and the Ohio State Highway Patrol, under the direction of Colonel John Born.
Sentencing is scheduled for October 4, 2013 at 1:00 p.m. before Judge Skretny.Beaver Falls Man Facing Child Pornography ChargesRead the Press Release
PITTSBURGH - A resident of Beaver Falls, Pa., has been indicted by a federal grand jury in Pittsburgh on charges of distribution and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The three-count indictment, returned on June 25, named Darren Johnson, 43, as the sole defendant.
According to the indictment, on or about March 22, 2013 and March 28, 2013, Johnson knowingly distributed visual depictions of minors engaged in sexually explicit conduct by computer. The indictment also alleges that, on or about April 26, 2013, Johnson possessed visual depictions, namely, images and videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
The law provides for a total sentence of not less than five years and not more than 30 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Amy L. Johnston is prosecuting this case on behalf of the government.
The Pennsylvania Office of Attorney General and the Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Barceloneta Contractor Carlos Bolet Alvarez Pleads Guilty to Misprision of FelonyRead the Press Release
SAN JUAN, P.R. – Today, Carlos Bolet Álvarez, a former contractor with the Municipality of Barceloneta pled guilty to a one count Information charging misprision of a felony before the Magistrate Judge Silvia Carreño-Coll, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. As a result of the failure to report an extortion of payment to the Mayor of Barceloneta the defendant could face up to 3 years in prison and a $250,000 fine. The sentencing was scheduled for October 25, 2013 at 9:30 am.
From May 2011 through June 2011, Bolet had contracts in place for the rental of heavy equipment with the Municipality of Barceloneta and therefore was under an obligation to report any bribes, kickbacks or illegal payments that were made. From on or about May 16, 2011 and continuing through June 10, 2011, Bolet, having knowledge of the actual commission of a felony cognizable by a court of the United States, specifically, an extortion payment of $40,000 solicited at the urging of the Mayor of the Municipality from Bolet, by actual or threatened use of fear and under the color of official right in violation of 18 U.S.C. §1951, knowing he was under an obligation to report the same, accepted further payments from the Municipality of Barceloneta pursuant to said contract involving federal funds and did not report the payment to some judge or other law enforcement authority.
“We will continue to prosecute public officials and contractors whose conduct undermines the public's trust in federal, state and municipal government,” said US Attorney Rosa Emilia Rodríguez-Vélez. “Moreover, this case serves as an important reminder that even the failure to report a bribe may subject officials and contractors to criminal prosecution.”This case is being prosecuted by Senior Litigation Counsel, Charles R. Walsh and was investigated by the FBI.
Atlanta Tax Return Preparer Sentenced for Filing False Tax ReturnsRead the Press Release
Defendant Filed False Tax Returns Claiming Over $1.2 Million in Bogus Refunds
ATLANTA – Eugene Gibbons was sentenced today to serve over three years in federal prison for filing false tax returns that claimed over $1.2 million in fraudulent refunds.
“This defendant’s persistence in filing fraudulent tax returns despite knowing the consequences does not compare to the persistence of law enforcement in seeing through his lies and requiring him to face justice for his fraud,” said United States Attorney Sally Quillian Yates.
“At the IRS, protecting taxpayer money is a matter we take extremely serious,” stated Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “An integral part of the agency’s mission involves detecting and catching fraudulent refund claims. We identified and investigated the filing of false tax returns submitted by Eugene Gibbons, and as a result of his actions, he will serve time in jail.”
According to United States Attorney Yates, the charges and other information presented in court: Gibbons prepared fraudulent federal income tax returns at a tax preparation business named C&M Tax Service from 2002 through 2009. On the tax returns, Gibbons claimed fraudulent deductions, expenses, and credits, which resulted in his clients receiving fraudulent refunds. Gibbons then received monetary fees from those clients who he helped obtain fraudulent refunds. In total, Gibbons prepared tax returns claiming over $1.2 million in false and fraudulent refunds.
Gibbons admitted that he started filing fraudulent tax returns shortly after he was released from prison where he was serving a sentence for a previous conviction for filing false federal tax returns.
Gibbons, 65, of Atlanta, Ga., was sentenced today by United States District Judge Willis B. Hunt, Jr. to three years, six months in prison to be followed by two years of supervised release. He was also ordered to pay $1,286,486.50 in restitution to the United States Treasury. Gibbons pleaded guilty on July 31, 2012, to two counts of aiding and abetting in the preparation of false tax returns.
This case is being investigated by Special Agents of the Internal Revenue Service Criminal Investigation.
Assistant United States Attorneys Thomas J. Krepp and Steven D. Grimberg are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Another Pharmacist at Grapevine Drug Mart Is Sentenced on Income Tax Evasion ConvictionRead the Press Release
FORT WORTH, Texas — Joseph Moss has been sentenced to one year and one day in federal prison and ordered to pay a $3000 fine and $51,150 in restitution following his guilty plea in January 2013 to one count of income tax evasion, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Moss, according to the factual resume filed in the case, is a licensed pharmacist who worked as a pharmacist for Grapevine Drug Mart, a family-owned and operated pharmacy in Grapevine, Texas. He received quarterly and weekly payments of income drawn on Grapevine Drug Mart’s business bank accounts. The quarterly payments were generally received three to five times per year and varied in amounts ranging from $20,000 to $100,000. Each of the quarterly payments were made payable to Moss enterprises, a dba Moss established, and deposited into Moss Enterprises’ business bank account. The weekly payments were much smaller in amount and were made payable to Moss via check. From October 2006 through December 2008, Moss cashed these weekly checks made payable to himself and thus not reported on his income tax return.
The factual resume further states that in October 2009, Moss timely filed his federal income tax return but attempted to evade the amount of federal income tax he owed by failing to report approximately $159,450 that he had received from Grapevine Drug Mart for the 2008 tax year. As a result, Moss had an additional tax due and owing of $58,554 for the 2008 tax year.
Joseph Moss’s father, Norvell Moss, was sentenced last month to 18 months in federal prison for the same offense. He was ordered to pay a $30,000 fine and an additional $8,277 in restitution to go along with the more than $94,000 he had paid prior to sentencing.
According to the public court record, two other defendants affiliated with Grapevine Drug Mart were recently convicted in the Northern District for tax-related felony offenses. Larry Lake, also a Colleyville resident and a part-owner of Grapevine Drug Mart, was convicted by a federal jury in Fort Worth in February 2013 on concealment of assets (bankruptcy fraud) and three counts of tax evasion. His son, Travis Lake, who managed Grapevine Drug Mart, pleaded guilty that same month to an indictment charging three counts of fraud and false statements in connection with tax returns he filed for tax years 2006, 2007 and 2008. Both Larry Lake and Travis Lake are scheduled to be sentenced in mid-July 2013.
The cases were investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Brian Poe and Tax Division Trial Attorney Robert A. Kemins are in charge of the prosecutions.
$20+ Million ‘Black Market Peso Exchange’ Scheme Sends Several to PrisonRead the Press Release
HOUSTON – One of the leaders and several members of an organization that laundered more than $20 million through “shell” business bank accounts has now been ordered to federal prison, United States Attorney Kenneth Magidson announced today along with Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Enrique Morales, 43, of Houston and Guadalajara, Mexico, pleaded guilty to conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmitting business earlier this year as did Willie Whitehurst, 45, Fulton Smith, 41, and Anthony Foster, 47, all from Houston and money couriers for the organization. Sarah Combs, 49, of Dickinson, pleaded guilty to conspiracy to operate an unlicensed money transmitting business.
Today, U.S. District Judge U.S. District Judge Lee H. Rosenthal, who accepted the guilty pleas, sentenced Morales, determined to be a leader in the conspiracy, to 188 months in prison. Foster received a sentence of 121 months, while Smith and Combs received total prison terms of 30 and 24 months, respectively. Whitehurst is scheduled to be sentenced on August 26.
In August 2012, a federal grand jury in Houston indicted the five defendants for their parts in a large “Black Market Peso Exchange” scheme. From October 2009 to September 2011, the defendants placed U.S. currency gained through the sale of drugs in U.S. cities into bank accounts held in the name of the organization’s “shell” companies. The money then was transferred to different accounts in the U.S. and in Mexico. In exchange, pesos were transferred back to accounts owned by the organization’s clients.
Smith, Combs and Foster were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Morales will remain in custody.
The case was investigated by the Drug Enforcement Administration and Internal Revenue Service – Criminal Investigation. Assistant United States Attorney Ted Imperato of the Southern District of Texas and Trial Attorney Keith Liddle of the Money Laundering and Bank Integrity Unit of the Criminal Division’s Asset Forfeiture and Money Laundering Section are prosecuting the case.
25 June 2013
Willard Woman Charged with Social Security FraudRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that an information was filed against Diana Ousley, age 57, of Willard, Ohio.
The charge relates to Social Security Fraud beginning on or about May 2004 and continuing to November 2012. She is accused of fraudulently receiving $64,414.
If convicted, defendant’s sentence will be determined by the Court after review of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Office of Inspector General Social Security Administration.
The case is being handled by Assistant United States Attorney Angelita Cruz Bridges.
An information is only a charge and is not evidence of guilt. The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.
USDA Employee Pleads Guilty to Lying in Order to Secure Loans to Hide More Than $600,000 in Thefts from Federally Funded Non-ProfitRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced today that Donna Jean Remides, 51, of Winnsboro, La., pleaded guilty before U.S. District Judge Robert G. James to lying on loan applications in order to receive loans used to hide the theft of $640,000 from a federally funded non-profit.
A trial started Monday but ended today as the prosecution was calling witnesses to testify. Remides decided to plead guilty to the charge of making a false statement to a bank instead of continuing with the trial. Witness testimony and documents admitted at trial and the guilty plea revealed that Remides was employed as a project coordinator by the U.S. Department of Agriculture (USDA) through the Natural Resource Conservation Service (NRCS) to work for the non-profit Northeast Delta Resource Conservation and Development Council (NDRC&DC) in Winnsboro. From January 2001 to December 2010, Remides used the NDRC&DC accounts to pay herself $640,000 without authorization from the NDRC&DC. She wrote herself and her private business checks over the nearly 10-year period. She also obtained loans in the name of the council to cover the thefts. Loan documents were filled out stating that the council members had authorized loans at meetings when in fact they had not.
Remides faces 30 years in prison, a $1 million fine, and five years of supervised release for one count of making a false statement to a bank. Sentencing has been set for Oct. 7, 2013.
The USDA-Office of Inspector General in Jackson, Miss., and the FBI investigated the case. Assistant U.S. Attorney Cytheria D. Jernigan is prosecuting the case.
U.S. Attorney Sarah R. Saldana Welcomes Trafficking in Persons (TIP) Report HeroesRead the Press Release
TIP Report Heroes Visiting From Cameroon, Croatia, Guyana, Iraq, Japan, Nicaragua and the Philippines
ARLINGTON, Texas — U.S. Attorney Sarah R. Saldaña of the Northern District of Texas welcomed the 2013 Trafficking in Persons (TIP) Report Heroes at an executive session this morning of the North Texas Anti-Trafficking Team (NTATT) in Arlington, Texas. Each year, the Department of State honors individuals from around the world who have devoted their lives to fight human trafficking. The 2013 TIP Report Heroes were announced last week by Secretary of State John Kerry when he released the 2013 TIP Report, and Dallas is one of only three cities in the country honored with their visit.
U.S. Attorney Saldaña said, “I am honored and humbled to welcome this impressive group of heroes today – heroes who have made an extraordinary difference in the global fight against modern-day slavery. The fight against human trafficking and modern-day slavery, including the rights and interests of victims of these heinous crimes, is a Department of Justice priority.”
The TIP Report is the U.S. Government’s principal diplomatic tool to engage foreign governments on human trafficking. According to the Department of State, it is also the world’s most comprehensive resource of governmental anti-human trafficking efforts and reflects the U.S. Government’s commitment to global leadership on this key human rights and law enforcement issue. The U.S. Government uses the TIP Report to engage foreign governments in dialogues to advance anti-trafficking reforms and to combat trafficking and to target resources on prevention, protection and prosecution programs.
At today’s meeting, U.S. Attorney Saldaña introduced these Heroes and noted their tireless efforts – in spite of resistance, opposition and threats to their lives – to protect victims, punish offenders and raise awareness of ongoing criminal practices in their countries and abroad. The Heroes are from Cameroon, Croatia, Guyana, Iraq, Japan, Nicaragua and the Philippines, and each shared his personal story at the meeting.
The U.S. Attorney’s Office for the Northern District of Texas launched the NTATT in 2006 to combat human trafficking in the Dallas – Fort Worth area and surrounding counties. NTATT’s goal is to work with law enforcement and private agencies to discover and assist victims of human trafficking while identifying and prosecuting offenders. In addition to the U.S. Attorney’s Office, agencies represented in today’s roundtable discussion included: Arlington Independent School District Police Department, Arlington Police Department, Catholic Charities of Dallas, Catholic Charities of Fort Worth, Child Protective Services, Cooks Children’s Hospital, Dallas County Juvenile Department, Dallas Police Department, Dallas Independent School District Police Department, FBI, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Fort Worth Police Department, Genesis Women’s Shelter, Mosaic Family Services, Safe City Commission, Tarrant County Criminal District Attorney’s Office, Texas Alcoholic Beverage Commission, the U.S. Equal Employment Opportunity Commission and the Texas Department of Public Safety.
Two District Men Sentenced to Prison Terms for Robbery at Northwest Washington Apartment Building-Defendants Targeted Victims in the Lobby-Read the Press Release
WASHINGTON – Michael Richardson and Kendall Lowe, both 22 and of Washington, D.C., have been sentenced to prison terms on charges stemming from a robbery last fall at an apartment building in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
The defendants pled guilty in March 2013 in the Superior Court of the District of Columbia. Richardson pled guilty to robbery and carrying a pistol without a license. Lowe pled guilty to robbery. Both were sentenced by the Honorable Heidi M. Pasichow.
Richardson was sentenced on June 21, 2013 to a 3 ½-year prison term, and Lowe was sentenced on June 7, 2013 to three years in prison. Upon completion of their prison terms, both men will be placed on three years of supervised release.
According to the government’s evidence, Richardson and Lowe targeted the victims, two men, at about 10:40 p.m. on Oct. 5, 2012 after seeing them in the lobby of an apartment building in the 200 block of Hamilton Street NW. Richardson and Lowe went into the lobby. Then, with Lowe acting as a look-out, Richardson pointed a gun at one of the victims and demanded money, getting $47. Richardson then turned and pointed the gun at the second victim and demanded money. When that man said he had no money, Richardson and Lowe fled the building.
A witness spotted the defendants the following day and called police.
In announcing the sentences, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Debra McPherson and Assistant U.S. Attorney Natalia Medina, who investigated and prosecuted the case.
13-224Springfield Woman Charged with Distributing K2 to Raise Money for Husband's Legal FeesRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., woman was charged in federal court today with distributing synthetic marijuana, commonly referred to as K2, in an apparent effort to pay the legal fees of her husband, who is incarcerated for the same offense.
Victoria A. Butchee, also known as Victoria A. Wohlin, 28, of Springfield, was charged in a criminal complaint that was filed in the U.S. District Court in Springfield.
According to an affidavit filed in support of today’s complaint, Butchee ordered chemicals through the mail and made synthetic marijuana in order to pay the legal fees of her husband, Travis E. Butchee, also known as “Donkey,” 37. He has been incarcerated since June 11, 2013 after being indicted by a federal grand jury for participating in a conspiracy to distribute synthetic marijuana.
Victoria Butchee offered to front the product to a confidential informant, the affidavit says. She allegedly told the informant that she expected a projected sales amount of $30,000.
On Monday, June 24, 2013, Victoria Butchee drove to the informant’s location. She removed a large black garbage bag from behind the driver’s seat, the affidavit says, and took the bag inside the location to deliver it to the informant. She was arrested when she left the store. According to the affidavit, the bag contained 10 pounds of synthetic marijuana.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Springfield, Mo., Police Department.
South Carolina Man Indicted for Defrauding Birmingham Heavy Equipment CompanyRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a South Carolina man for wire fraud in connection with a scheme to sell a piece of heavy machinery he did not possess to a Birmingham company, announced U.S. Attorney Joyce White Vance and U.S. Secret Service Acting Special Agent in Charge Jeffrey Anderson.
An indictment filed in U.S. District Court charges THOMAS CHASE CHILES, 46, with one count of wire fraud and seeks forfeiture of $60,000 to the United States as proceeds of illegal activity.
According to the indictment, the fraud was conducted as follows:
Between Sept. 28, 2009, and Oct. 9, 2009, Chiles sent e-mails to Cowin Equipment Company in Birmingham, advertising a Komatsu PC300LC Excavator for sale and providing detailed specifications on the piece of equipment. Chiles did not own the excavator, nor did he have authority to sell it.
Through further e-mails to a Cowin representative, Chiles negotiated a $59,000 price for the excavator, plus $1,000 to deliver it to the heavy equipment company. Chiles sent subsequent e-mails to Cowin representatives to lull them into believing that he would eventually deliver the excavator and delay them from filing a complaint with the authorities.
On Oct. 9, 2009, Cowin wired $60,000 to Chile’s bank account for the Komatsu excavator, which it never received.
The maximum penalty for wire fraud is 20 years in prison and a $250,000 fine.
The U.S. Secret Service investigated the case. Assistant U.S. Attorney Chinelo Diké-Minor is prosecuting the case.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent and it is the government’s responsibility to prove guilt beyond a reasonable doubt at trial.
Shiprock Man Pleads Guilty to Using a Firearm in Relation to a Crime of Violence on the Navajo Indian ReservationRead the Press Release
ALBUQUERQUE – Eddie Shirley, 28, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pleaded guilty this morning to using and brandishing a firearm in relation to a crime of violence on the Navajo Indian Reservation. Under the terms of his plea agreement, Shirley will be sentenced to not less than seven years in federal prison.
Shirley was arrested in Dec. 2012, on a criminal complaint charging him and co-defendant, Jerrileta Singer, 32, with the armed robbery of a Sonic Drive-In Restaurant in Shiprock on Nov. 30, 2012. Singer subsequently was arrested in Jan. 2013. The two were then indicted and charged with (1) robbery, and (2) using and brandishing a firearm during and in relation to a crime of violence.
During today’s plea hearing, Shirley entered a guilty plea to Count 2 of the indictment and admitted using a firearm to rob the Sonic Drive-In in Shiprock on Nov. 30, 2012. Shirley acknowledged that a female participated in the robbery and that together they used force, intimidation and violence to take money from the restaurant’s employees.
Shirley has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
Singer has entered a not guilty plea to the indictment and is scheduled for trial on July 1, 2013. The charges in the indictment against Singer are merely accusations and she is presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and is being prosecuted by Assistant U.S. Attorney Novaline D. Wilson.Seventeen People Indicted for Conspiracy That Brought Cocaine, Heroin and Marijuana to Youngstown, Akron and ColumbusRead the Press Release
A grand jury returned a 57-count indictment charging 17 people for their roles in a conspiracy that distributed cocaine, heroin and marijuana on the streets of Youngstown, Akron and Columbus, law enforcement officials announced.
Terrance A. Tarver obtained cocaine and marijuana from individuals in Columbus for distribution in Youngstown, Akron and Columbus. Tarver also obtained heroin from sources in Youngtown and Akron for distribution in Youngstown and Akron, according to the indictment.
Tarver was one of 10 people named in a federal indictment filed in April 2012. He has pleaded guilty and is awaiting sentencing.
This indictment details a distribution network of people who obtained drugs from Tarver and then sold them throughout Northeast Ohio.
Count 1 charges all 17 people listed below with conspiracy to possess with intent to distribute cocaine, heroin and marijuana:
Defendant
Residence
Age
Benjamin J. Phillips
Cheraw, South Carolina
36
Youngstown, Ohio
41
Ronald O. Clark
Youngstown, Ohio
47
Phillip D. Whitman
Youngstown, Ohio
37
Gerard B. Balbirsingh
Farrell, Pennsylvania
45
Edward Odem, III
Sharon, Pennsylvania
34
Darryl C. Pippin
Youngstown, Ohio
43
Abdul W. Muhammad, aka Wally
Youngstown, Ohio
41
Clifton T. Hudson
Youngstown, Ohio
40
Dwayne A. Oliver
Youngstown, Ohio
42
Antjuan A. Adkins
Akron, Ohio
37
Edthaniel L. Tarver, aka Lamont
Youngstown, Ohio
37
Anthony J. Walker, aka Prem
Tempe, Arizona
36
Dontae R. Lackey
Columbus, Ohio
35
Quay L. Watkins
Akron, Ohio
35
Brandon M. Williams
Youngstown, Ohio
20
Patrick D. McWhorter
Youngstown, Ohio
21
“This group represents another layer of people who sold drugs throughout the region,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “They profited from other people’s addictions.”
“The individuals arrested this morning represent the second tier of this cocaine, heroin, and marijuana trafficking organization” said Stephen D Anthony, Special Agent in Charge of the FBI’s Cleveland office. “As evidenced by this continuing investigation, the FBI will work with our law enforcement partners to target and eliminate the most significant threats to our communities.”
Lt. Jeff Solic, who leads the Mahoning Valley Law Enforcement Task Force, said: “These types of cases and arrests are only possible because of the tremendous cooperation between local, state and federal law enforcement.”
Counts 2-4 of the indictment charge defendants Benjamin J. Phillips, Abdul W. Muhammad, aka Wally, Brandon M. Williams and Patrick D. McWhorter with maintaining a premises for the purposes of distributing and using controlled substances. Counts 5-57 of the indictment charge the defendants with using a telephone to facilitate drug trafficking.The investigation was conducted under the U.S. Attorney’s Organized Crime Drug Enforcement Task Force (OCDETF) which is part of a national program that seeks to identify, investigate and prosecute significant drug trafficking enterprises by utilizing multiple investigative and prosecution resources.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ roles in the offenses and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation, the Drug Enforcement Administration and the Mahoning Valley Law Enforcement Task Force. The case is being prosecuted by Assistant United States Attorneys Nancy L. Kelley and Linda H. Barr.
An indictment 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.
San Francisco Resident Sentenced to 24 Months in Prison for Filing False Claims for Tax RefundsRead the Press Release
SAN FRANCISCO - On June 19, 2013, Eric Flentoil pleaded guilty and was sentenced to two years in prison for access device fraud and filing false claims, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigations (IRS-CI) Special Agent in Charge José M. Martinez.
In pleading guilty, Flentoil admitted to filing a false 2011 income tax return using a stolen Social Security number and claiming a tax refund of $2,915. Unknown to Flentoil, the individual to whom the social security number belonged, had made a $40,000 estimated tax payment to the IRS for his 2011 taxes. Therefore, the IRS sent a $40,000 refund check, in the victim’s name, to the address on the false return, which was Flentoil’s home address. Flentoil used the victim’s name and social security number to open a bank account, deposit the $40,000 check, and obtain a debit card to access the funds. From June 1, 2012, through June 11, 2012, Flentoil used the debit card to withdraw funds and make purchases.
Flentoil also filed a false 2011 federal income tax return in his own name, receiving a $2,071 tax refund, to which he was not entitled.
Flentoil, age 31, of San Francisco, was indicted on March 19, 2013. He was charged with access device fraud, filing false claims, and aggravated identity theft. He pleaded guilty to access device fraud and filing false claims.
The sentence was handed down by U.S. District Court Judge Edward Chen following a guilty plea on two counts in violation of filing false claims in violation of Tile 18, United States Code, Section 287 and one count of access device fraud in violation of Title 18, United States Code, Section 1029(a)(2). The Honorable Judge Chen also sentenced the defendant to 3 years of supervised release. Flentoil has been in custody since his arraignment and remains in custody to serve his sentence.
Cynthia Stier is the Assistant U.S. Attorney who is prosecuting the case. The prosecution is the result of a two month investigation by the IRS-CI.
(Flentoil Indictment )
Roswell Man Sentenced to 51 Months in Federal Prison for Unlawful Possession of a FirearmRead the Press Release
ALBUQUERQUE – Xavier Barela, 36, of Roswell, N.M., was sentenced today in Las Cruces Federal Court to 51 months in prison to be followed by three years of supervised release for being a felon in possession of a firearm.
Barela was arrested in May 2012, based on a criminal complaint charging him with being a felon in possession of a firearm and subsequently was indicted on that same charge. The indictment charged Barela with unlawfully possessing a firearm in Chaves County, N.M., on April 21, 2012. At the time, Barela was prohibited from possessing firearms or ammunition because he previously had been convicted of several felony offenses, including receiving and transferring a stolen motor vehicle, possession of a controlled substance, unlawful taking of a motor vehicle and the fraudulent use of a credit card, in the 5th Judicial District Court for the State of New Mexico.
Barela entered a conditional guilty plea to the indictment in Nov. 6, 2012, reserving the right to appellate review of the court’s denial of his motion to suppress evidence.
This case was investigated by the Roswell office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Roswell Police Department, and is being prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.Rochester Man is Sentenced in Child Pornography CaseRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Douglas C. Tatner, II, 33, of Rochester, N.Y., who was convicted of possession of child pornography, was sentenced to 48 months in prison and 12 years of supervised release by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that a search warrant was executed at Tatner's former residence on Glide Street in Rochester by members of the FBI's Cyber Crimes Task Force in January 2012. The warrant was issued after a witness reported seeing images of child pornography depicting children 12 years old and younger on the defendant's computer. Tatner admitted to possessing images of child pornography, some of which depicted pre-pubescent minors.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation's Cyber Crimes Task Force, under the direction of Acting Special Agent in Charge Richard M. Frankel which includes the Rochester Police Department, under the direction of Chief James Sheppard.
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.Rio Grande City Man Heads to Prison for Trafficking More Than 1000 Kilos of MarijuanaRead the Press Release
McALLEN, Texas – Eduardo Ramirez, 59, of Rio Grande City, has been handed a significant sentence following his convictions in Organized Crime Drug Enforcement Task Force (OCDETF) Operation White Line, United States Attorney Kenneth Magidson announced today. Ramirez was convicted by a McAllen Jury on March 8, 2013, following a four-day trial.
Ramirez and others were indicted for conspiracy to possess and possession with the intent to distribute in excess of 1,000 kilograms of marijuana.
“Those that transport large quantities of drugs through the Southern District of Texas on behalf of major drug cartels will be prosecuted to the fullest extent of the law,” said Magidson. “This case is another example of our cooperation with various law enforcement agencies in that effort.”
Today, U.S. District Judge Micaela Alvarez who presided over the trial, handed Ramirez a sentence of 235 months in federal prison to be followed by a five-year-term of supervised release. In handing down the sentence, Judge Alvarez noted that the defendant was a leader in the criminal enterprise to transport the marijuana.
Evidence at trial revealed Ramirez and others agreed to transport approximately 1,567 kilograms of marijuana in a tractor-trailer to other narcotics traffickers based in Houston in September 2011. An aftermarket compartment was built into a trailer that was subsequently used to transport the marijuana, as well as approximately 5,000 kilograms of Mexican charcoal. Documents, recorded conversations and testimony showed Ramirez had provided the cover load, which was to be used to mask the odor of marijuana and dissuade law enforcement officers from searching the trailer. Ramirez was unaware that the driver of the tractor-trailer was an undercover police officer.
On Sept. 25, 2011, agents conducted a controlled delivery of the marijuana. Ramirez and others traveled to Houston in anticipation of the arrival of the marijuana load. Agents off-loaded the marijuana and placed it in a van, which was picked up Sept. 27, 2011, by a member of the conspiracy. Officers with the Houston Police Department (HPD) later stopped the van for a traffic violation, discovered the marijuana and arrested the driver. Later that day, Ramirez paid approximately $30,000 for the transportation of the marijuana.
Ramirez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Vicente Montes and Eduardo Humberto Ramirez, the son of Eduardo Ramirez, are currently fugitives and warrants remain outstanding for their arrest. Anyone with information about their whereabouts is asked to contact Homeland Security Investigations (HSI) at 800-973-2867. They are presumed innocent unless convicted through due process of law.
The OCDETF investigation leading to the criminal charges was conducted in McAllen and Houston by Homeland Security Investigations, Pharr Police Department, Hidalgo County Sheriff’s Office, HPD, Harris County Sheriff’s Department and the FBI.
Assistant United States Attorneys Jesse Salazar and Juan Alanis are prosecuting the case.
Real Estate Broker Who Ran Mortgage Fraud Scheme Sentenced to PrisonRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Sylvia Odia Thomas, 40, formerly of West Chester, Ohio was sentenced to 30 months in prison, three years of supervised release, and ordered to pay $313,021 in restitution to lenders and $95,422.14 to the IRS for crimes she committed as part of a mortgage fraud scheme.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service, announced the sentence handed down today by Senior U.S. District Judge Herman J. Weber.
Thomas pleaded guilty on November 6, 2012 to one count of mail fraud and one count of filing false income tax returns. She committed both crimes in connection with her business as a mortgage broker. “She habitually falsified documentation for loan applications for her clients and failed to report her correct income to the IRS,” Assistant U.S. Attorney Tim Mangan wrote in a memorandum filed with the court prior to sentencing.
Thomas willfully filed false federal income tax returns with the IRS for the 2006 through 2009 income tax years. These federal income tax returns did not include substantial amounts of additional income that was paid to Thomas in the form of broker closing and processing fees that were obtained from brokering and closing client loans. In total, Thomas underreported her gross receipts by $312,882 for the 2006 through 2009 income tax years, resulting in a tax loss of $95,422.14. The Court determined the amount of loss for her mortgage fraud was $313,021.
Thomas operated a home renovation company and later started her own mortgage brokerage business. Eventually, she began writing false income and employment information on loan applications in order to get her clients approved. This practice also involved fabricating false supporting documents that were sent to the lenders. She also engaged in creating false down payments for her clients by making cashier’s checks to look like earnest money from the clients. When agents executed a search warrant at her home, they found numerous cut-and-paste documents related to this fraudulent scheme.
Antonio Weathers, 41, of Cincinnati, Ohio has pleaded guilty to one count of mail fraud and to one count of money laundering in connection with the same mortgage fraud scheme. The guilty plea was entered before Chief U.S. District Judge Susan J. Dlott on April 8, 2013. Weathers faces a maximum prison sentence of 20 years and a fine of up to $250,000. A date for his sentencing has not been set.
According to court documents, Weathers formed a real estate business in which he arranged for the purchase and resale of mostly low income properties. Weathers transferred $42,532.43 in mail fraud proceeds from one bank account to another bank account in the name of Antonio Weathers, d/b/a, KI Enterprises.
“These types of crimes create a significant loss of tax revenue, drive buyers into foreclosure, and leave lenders burdened with bad loans,” said Kathy A. Enstrom, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Criminal Investigation remains committed to pursuing financial investigations into such crimes.”
U.S. Attorney Stewart commended Assistant United States Attorney Mangan who represented the U.S. in the case, and the cooperative investigation conducted by IRS Special Agents and Postal Inspectors.
Postmaster Accused of Embezzling More Than $13,000 in Postal FundsRead the Press Release
PITTSBURGH - A resident of Westmoreland County has been indicted by a federal grand jury in Pittsburgh on a charge of misappropriation of postal funds, United States Attorney David J. Hickton announced today.
The one-count indictment named Lawrence F. Stoken, III, 47, of Export, Pa., as the sole defendant.
According to the indictment, while employed as the Postmaster at the Rural Valley, Pennsylvania Post Office, Lawrence F. Stoken, III embezzled approximately $13,255.90 from the sale of stamps and postal money orders during the period from October 2011 to March 2013.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The United States Postal Service, Office of Inspector General, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Northwest MO Man Indicted for Child Porn, Obscenity after Thousands of Images Found on ComputerRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Newtown, Mo., man has been indicted by a federal grand jury for possessing and receiving child pornography over the Internet and for possessing child obscenity.
Nicholas Alex Dickinson, 31, of Newtown, was charged in a three-count indictment returned by a federal grand jury in Kansas City on Tuesday, June 18, 2013.
The federal indictment alleges that Dickinson received child pornography over the Internet on April 23, 2013. Dickinson is also charged with possessing child pornography and with possessing obscene material – such as cartoons or animation of child pornography that were also obtained over the Internet – on May 2, 2013.
According to court documents, law enforcement officers executed a search warrant at Dickinson’s residence on May 2, 2013 based on a peer-to-peer file-sharing investigation. Officers seized a laptop computer, an external hard drive and other computer media during their search. A forensic examination of the computer and computer media determined that Dickinson had saved thousands of images and/or video files of child pornography, in addition to thousands of files relating to child obscenity.
Prior to the execution of the search warrant, officer’s monitored Dickinson’s online activities. According to court documents, Dickinson used the peer-to-peer file sharing program to offer to share child pornography virtually every day in April 2013.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Teresa A. Moore. It was investigated by the Kirksville, Mo., Police Department, the Sullivan County, Mo., Sheriff’s Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."North Idaho Man Enters Felony Plea for Illegally Cutting TimberRead the Press Release
COEUR D’ALENE – Norman Leroy Bogart, 54, of Kingston, Idaho, pleaded guilty yesterday in federal court to illegally cutting timber on national forest lands, U.S. Attorney Wendy J. Olson announced. An information charging him with one felony count of willful injury or depredation to property of the United States was filed in United States District Court in Coeur d’Alene on June 17, 2013.
According to the plea agreement, the defendant admitted that between April and October, 2012, he cut and hauled timber illegally from an area within the Idaho Panhandle National Forests, near his home in Kingston, Idaho. The U.S. Forest Service began to investigate after discovering that 40 green trees had been cut within the one area. U.S. Forest Service investigators used a deer camera to capture Bogart’s vehicle traveling to and from the cut location.
On October 3, 2012, the U.S. Forest Service executed a search warrant at Bogart’s residence and seized more than 58 cords of timber cut into firewood. One pile was estimated to be 40 feet long, 10 feet wide and 10 feet tall, according to the plea agreement. Investigators determined that most of the timber was green when cut. Investigators matched some of the larger timber seized from Bogart’s property to several stumps at the cut location within the Idaho Panhandle National Forests.
“We are pleased to see this case prosecuted and want to emphasize that timber theft will not be tolerated on national forest system lands,” said Mary Farnsworth, Idaho Panhandle National Forest Supervisor. “I especially would like to thank our law enforcement officers who invested many hours investigating this case to ensure the public is reimbursed for their losses.”
The charge of willful injury or depredation to property of the United States is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for September 16, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene.
The case was investigated by the U.S. Forest Service, with the assistance of the Idaho State Police, the North Idaho Violent Crimes Task Force, and the Shoshone County Sheriff’s Office.
New Jersey Man Charged with Enticing A MinorRead the Press Release
Louay Shaman, 30, of Cliffside Heights, New Jersey, was charged by Indictment, unsealed today, with one count of enticing a minor to engage in illegal sexual activity on March 3, 2012, and with one count of transporting a minor interstate on March 4, 2012, with the intent that the minor engage in illegal sexual activity, announced United States Attorney Zane David Memeger. Shaman was arrested today and appeared in court.
If convicted of all charges,Shaman faces mandatory minimum sentence of 10 years in prison with a maximum possible sentence of life imprisonment, a maximum period of supervised release of life with a mandatory minimum of five years of supervised release, a $500,000 fine, and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Albert S. Glenn and Karen Fox.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.
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An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525New Haven Crack Dealer Sentenced to 41 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ROBERT MORRIS, 21, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 41 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.
MORRIS is one of more than 100 individuals charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants and seizures of narcotics and firearms. The investigation revealed that MORRIS conspired with others to distribute crack.
MORRIS was arrested on May 22, 2012, and is currently detained. On February 4, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, cocaine base (“crack”).
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant United States Attorneys S. Dave Vatti and Marc Silverman.
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(203) 821-3722 [email protected]Mobile County Woman Pleads Guilty to Aiding and Assisting in the Preparation of False Tax ReturnsRead the Press Release
The United States Attorney, Kenyen Brown announces that Sandra Carter, a 50 year old Theodore resident pled guilty today to one count of falsifying tax returns by claiming business losses and education tax credits for customers when no such losses or credits were justified. While Ms. Carter pled guilty to one violation of Title 26 U.S.C., Section 7206(2), she agreed to pay $144,565.00 in restitution for 17 false returns she filed for tax years 2009 and 2010.
Ms. Carter will be sentenced by United States District Court Judge Kristi Dubose on October 4, 2013. She faces a maximum term of three (3) years incarceration followed by a three (3) year term of supervised release and a fine not to exceed $250,000.00.
The Internal Revenue Service’s Criminal Investigation Division investigated the case and presented it to the U.S. Attorney’s Office for prosecution.
Missouri Woman Sentenced for Sex Trafficking in KansasRead the Press Release
KANSAS CITY, KAN. – A Missouri woman has been sentenced to federal prison for sex trafficking in Kansas, U.S. Attorney Barry Grissom said today.
Danyelle M. Putman, 21, Independence, Mo., was sentenced to 37 months in federal prison. She pleaded guilty to one count of transporting a person in interstate commerce to engage in prostitution. In her plea, she admitted she was arrested Aug. 9, 2012, when the Special Investigations Unit of the Prairie Village Police Department conducted a prostitution sting. An investigator working undercover called a number on an Internet site and arranged with Putman for a woman to meet him in Prairie Village, Kan., for sex.
At approximately 8 p.m. that day, Putman and co-defendant Tony A. Rogers, Jr., left Independence, Mo., with a woman identified in the indictment as K.C., with the intent that K.C. would engage in prostitution. Police took K.C. into custody when Putman and Rogers dropped her off. After Putman and Rogers drove away, they were stopped and arrested.
Co-defendant Tony A. Rogers pleaded guilty and was sentenced to 57 months in federal prison.
Grissom commended the Prairie Village Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
Michigan Orthodontist Pleads Guilty to Tax EvasionRead the Press Release
Samuel Daniels, age 54 of Brighton, Michigan, pleaded guilty to Tax Evasion for the year 2008, United States Attorney Barbara L. McQuade announced today. Ms. McQuade was joined in the announcement by Special Agent in Charge Erick Martinez, Internal Revenue Service Criminal Investigation Division.
According to court records, during 2006 through 2009 tax years, Daniels was working as an orthodontist in Brighton, Howell, and Fowlerville, Michigan operating as Samuel Daniels, DDS MS PLLC. During this time period, Daniels misrepresented personal expenditures as business expenses. Daniels knowingly provided the business check register to his CPA after disguising the payments as legitimate business expenses paid to known business vendors. In so doing, Daniels caused the CPA to prepare an incorrect tax return. In addition, Daniels failed to pay over $198,000 in taxes.
According to the plea agreement, Daniels used the business’ gross receipts to pay his home mortgage payment, home real estate taxes, a home equity line of credit, his daughter’s college tuition, credit card expenses for household furniture and jewelry, and other items.
Daniels entered the guilty plea in United States District Court before Judge David M. Lawson.
“By his guilty plea today, Daniels is acknowledging and accepting the consequences for falsifying his tax return and failing to pay almost $200,000 in taxes due,” said Assistant Special Agent in Charge Carolyn Weber.
A sentencing hearing was set by Judge Lawson for October 3 at 3 p.m. The maximum penalty for Tax Evasion is imprisonment of not more than 5 years and a $250,000 fine.
The investigation of this case was conducted by special agents of the IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Ross MacKenzie.
Michigan Man Charged and Sentenced for Lacey Act ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Holland, Michigan man has been charged with Lacey Act Violations by an Information filed April 4, 2013.
Donald Israels, age 46, appeared before U.S. Magistrate Judge John E. Simko on June 17, 2013 and pled guilty to Counts I and II the Information. Israels was sentenced to 1 year unsupervised probation, a $5,000 fine, $2,000 in restitution, and $50 special assessment to the Federal Crime Victims Fund.
The charges stem from two incidents occurring in November 2010 and 2011, in which Israels did knowingly transport, sell, receive, and acquire two white-tailed deer in interstate commerce from South Dakota to Michigan. Israels did not have a hunting license for the deer he killed.
The investigation was conducted by the U.S. Fish and Wildlife Service. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
McLaughlin Woman Charged with Controlled Substance Violations, Child Abuse and NeglectRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota woman has been indicted by a federal grand jury.
Adjoni Jones, a/k/a Adjoni Archambault, age 33, was indicted on June 12, 2013 for Distribution of a Controlled Substance to a Person under the Age of 21, Distribution of a Controlled Substance, and Child Abuse and Neglect. Jones appeared before U.S. Magistrate Judge William D. Gerdes on June 20, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 15 years of imprisonment, a $250,000 fine, or both; at least 4 years of supervised release, an additional 2 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusations, and Jones is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Jones was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
McLaughlin Man Charged with AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota man has been indicted by a federal grand jury for Assault Resulting in Serious Bodily Injury against a child.
Brett Charles Roach, age 25, was indicted by a federal grand jury on June 12, 2013. He appeared before U.S. Magistrate Judge William D. Gerdes on June 20, 2013 and pled not guilty to the Indictment.
The maximum penalty upon conviction is life imprisonment, a $250,000 fine, or both; 5 years of supervised release and an additional 3 years of supervised release upon revocation. Restitution and a $100 special assessment to the Federal Crime Victims Fund may also be ordered.
The charge is merely an accusation, and Roach is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Roach was released on bond pending trial. A trial date has not been set.
Maryland Man Pleads Guilty to Traveling into the District of Columbia to Engage in Illicit Sexual Conduct with A Minor and Possession of Child PornographyRead the Press Release
WASHINGTON – Akshay Rajashekar, 19, of Salisbury, Md., has pled guilty to federal charges of traveling interstate to engage in illicit sexual conduct with a minor and possession of child pornography, U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD) announced today.
Rajashekar entered the guilty plea on June 24, 2013, in the U.S. District Court for the District of Columbia. The Honorable Thomas F. Hogan is to sentence him on Sept. 9, 2013. Rajashekar faces a statutory maximum of 30 years of imprisonment for one count of traveling interstate to engage in illicit sexual conduct and a maximum of 10 years in prison for each of two counts of possession of child pornography, as well as potential financial penalties.
According to the government's evidence, on March 18, 2013, Rajashekar contacted an undercover officer with the FBI's Child Exploitation Task Force, who had posted an ad on a social network site. Over the next few days, the defendant engaged in online e-mail and instant messaging with the undercover officer ,whom the defendant believed was the father of an under-aged girl. During this period of time, Rajashekar arranged with the undercover officer to meet for the purpose of engaging in sexual acts with that child.
During the communications, Rajashekar also sent the undercover officer six images of child pornography. On March 25, 2013, Rajashekar traveled from College Park, Md. to a pre-arranged meeting place in Washington, D.C. When he arrived, he was arrested.
At the time of his arrest, Rajashekar had a pending case in Wicomico County, Md. for possession of child pornography. One of the two child pornography counts in the plea agreement covers that matter, and the Office of the State’s Attorney for Wicomico County Md. has agreed to dismiss the pending case in Wicomico County at the time of the defendant’s sentencing.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also expressed appreciation for the assistance of Assistant State's Attorney Pamela Correa of the Office of the State’s Attorney for Wicomico County, Md. Finally they commended the efforts of Assistant U.S. Attorney Ari Redbord, who is prosecuting the case.
13-225Manhattan U.S. Attorney Announces $102 Million Settlement of Civil Forfeiture and Money Laundering Claims Against Lebanese Canadian BankRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Michele M. Leonhart, the Administrator of the U.S. Drug Enforcement Administration (“DEA”), announced today a settlement of a civil forfeiture and money laundering lawsuit brought by the United States against the Lebanese Canadian Bank (“LCB”) and its assets. The Government’s action, filed on December 15, 2011, alleges a widespread, international scheme in which Lebanese financial institutions with links to Hizballah, including the now defunct LCB, used the U.S. financial system to launder narcotics trafficking and other criminal proceeds through West Africa and back into Lebanon. The settlement order requires LCB to forfeit $102 million to the United States. The settlement order was entered in Manhattan federal court today by U.S. District Judge Paul A. Engelmayer.
Manhattan U.S. Attorney Preet Bharara said: “Today’s settlement shows that banks laundering money for terrorists and narco-traffickers will face consequences for their actions, wherever they may be located. This type of money laundering network fuels the operations of both terrorists and drug traffickers, and we will continue to use every resource at our disposal to sever the connection between terrorists, narco-traffickers, and those who fund their lethal agenda.”
DEA Administrator Michele M. Leonhart said: “Regardless of how or where, DEA will relentlessly pursue global drug criminals and their huge profits, in particular those associated with terror networks such as Hizballah. This settlement is significant and addresses the role the Lebanese Canadian Bank played in facilitating illicit money movement from the United States to West Africa to Hizballah-controlled money laundering channels. Drug trafficking profits and terror financing often grow and flow together. One of DEA’s highest priorities will always be to promote U.S. and global security by disrupting these narco-terror schemes and protecting the systems they abuse.”
According to an Amended Complaint filed in Manhattan federal court in October 2012, and other documents filed in the case:
From approximately January 2007 to early 2011, at least $329 million was transferred by wire from LCB and other financial institutions, primarily two Lebanese money exchange houses, to the United States for the purchase of used cars that were then shipped to West Africa. Cash from the sale of the cars, along with the proceeds of narcotics trafficking, were funneled to Lebanon through Hizballah-controlled money laundering channels. LCB played a key role in these money laundering channels and conducted business with a number of Hizballah-related entities. Hizballah is a U.S. Department of State designated Foreign Terrorist Organization, a Specially Designated Terrorist, and a Specially Designated Global Terrorist.
On February 10, 2011, the U.S. Department of the Treasury, Financial Crimes Enforcement Network (“FinCEN”) issued a finding and proposed rule, pursuant to the USA Patriot Act, that LCB is a financial institution of primary money laundering concern, based on, among other things, FinCEN’s determination that there was reason to believe that LCB had been routinely used by drug traffickers and money launderers operating in various countries in Central and South America, Europe, Africa, and the Middle East. FinCEN also determined that there was reason to believe that LCB managers were complicit in the network’s money laundering activities.
Following the FinCEN action, another Lebanese financial institution, Société Générale de Banque au Liban (“SGBL”), acquired most of the assets of LCB. In connection with the purchase, $150 million was placed in an escrow account at Banque Libano Française SAL (“BLF”) in Lebanon. In August 2012, the Government seized $150 million from a BLF correspondent account in the United States based on a provision of U.S. law allowing seizure of such funds as a substitute for the funds held in escrow in Lebanon (the “Seized Funds”).
The settlement order requires LCB to forfeit $102 million of the Seized Funds to the United States. The settlement order also provides that, to settle claims brought by SGBL for $90 million of the Seized Funds, LCB will be required to pay SGBL an additional $12 million, and make provisions for additional payments based on separate agreements between LCB and SGBL. SGBL will also receive the remaining $48 million of the Seized Funds.
In addition, a second settlement order was entered in this action on June 20, 2013, regarding claims against the Hassan Ayash Exchange Company (“Ayash”), one of the Lebanese money exchange houses allegedly involved in the money laundering scheme. Under this settlement order, Ayash will forfeit more than $720,000 to the United States.
The settlement orders resolve only claims relating to LCB, Ayash, and their assets. The civil forfeiture and money laundering action continues against other alleged participants in the money laundering scheme.
Mr. Bharara thanked the DEA for its leadership and praised the New York Organized Crime Drug Enforcement Strike Force for its outstanding work on this investigation, which he noted is ongoing. The DEA’s New York Organized Crime Drug Enforcement Strike Force (the “Strike Force”) is comprised of agents and officers of the U. S. Drug Enforcement Administration, the New York City Police Department, Immigration and Customs Enforcement – Homeland Security Investigations (HSI), the New York State Police, the U. S. Internal Revenue Service Criminal Investigation Division, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Secret Service, and the U.S. Marshals Service. The Strike Force is partially funded by the New York/New Jersey High Intensity Drug Trafficking Area (HIDTA), which is a federally funded crime fighting initiative. Mr. Bharara also thanked the U.S. Department of State, the U.S. Department of the Treasury, the Federal Bureau of Investigation, and the New Jersey State Police for their assistance.
This matter is being handled by the Office’s Asset Forfeiture Unit. Assistant U. S. Attorneys Sharon Cohen Levin, Michael Lockard, Jason Cowley, and Alexander Wilson are in charge of the case.
U.S. v. Lebanese Canadian Bank Settlement Order
U.S. v. Lebanese Canadian Bank, et al. Amended ComplaintMan Owing More Than $90,000 in Child Support Pleads Guilty to Failure to PayRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kenneth Fay, age 54, most recently a resident of Missouri, pleaded guilty Monday before U.S. District Court Judge Christopher C. Conner to charges that he failed to pay child support.
According to United States Attorney Peter J. Smith, in November 1993, Fay was ordered to pay child support by the Dauphin County Court of Common Pleas Domestic Relations Section. Fay failed to pay the child support and the case was referred to the federal government after both the state and county exhausted their ability to collect the child support payments from Fay.
Fay was indicted by a federal grand jury in December 2011. At that time, Fay owed more than $90,000 in child support payments.
A sentencing date has not yet been scheduled.
The case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General. Prosecution is being handled by Assistant U.S. Attorney Daryl F. Bloom.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is two years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Man Convicted of Sex Trafficking A 15-Year-Old GirlRead the Press Release
ALEXANDRIA, Va. – Ronnie Pierre Holmes, 29, also known as “King,” with no fixed address, pleaded guilty today to a criminal information charging him with sex trafficking of a 15-year-old girl throughout Northern Virginia, Maryland, and Washington, D.C.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Valerie Parlave, Assistant Director in Charge of FBI’s Washington Field Office, and Lt. Col. Edwin C. Roessler, Jr., Acting Chief of the Fairfax County Police Department, made the announcement after the plea was accepted by United States District Judge Liam O’Grady.
“Those individuals who chose to prey on vulnerable juveniles and sexually exploit these children for profit will be prosecuted to the fullest extent of the law,” said United States Attorney Neil H. MacBride. “My office has made the prosecution of these cases a top priority and we will continue to vigorously pursue those who commit these unconscionable and vile crimes.”
“Mr. Holmes pled guilty today to the sexual trafficking of a child,” said Assistant Director in Charge Parlave. “Together with our law enforcement partners, the FBI is committed to tracking down predators like Mr. Holmes to help protect our children from such a horrific crime.”“Sex trafficking crime will not be tolerated in Fairfax County and the Police Department will aggressively fight this crime to protect our great community,” said Acting Chief Roessler. “We thank the United States Attorney’s Office for the Eastern District of Virginia for their partnership in combatting sex trafficking with us in Fairfax County and nationally. This partnership, along with that of our many federal law enforcement partners, will endure to continue making Fairfax County a safe place to live, work, and visit.”
Holmes faces a mandatory minimum term of 10 years in prison and a maximum penalty of life in prison when he is sentenced on September 27, 2013.
In a statement of facts filed with the plea agreement, Holmes admitted that he met the 15-year-old runaway outside of her home and that, within hours of meeting the girl, he had sex with her and started to contact other men to set up “dates” with her. Holmes admitted that he also found sex customers for the victim by posting advertisements on the Internet site www.Backpage.com. Holmes prostituted the victim in Washington, D.C., Maryland, and at various hotels in Alexandria and Fairfax County, Va.
This case was investigated by FBI’s Washington Field Office and the Fairfax County Police Department. Special Assistant United States Attorney Stacey Luck and Assistant United States Attorney, Michael J. Frank, are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Lewiston Dealer Sentenced to Federal PrisonRead the Press Release
COEUR D'ALENE – John Gilbert Rincon, 41, of Lewiston, Idaho, was sentenced today in United States District Court in Coeur d’Alene to 61 months in federal prison for conspiracy to distribute methamphetamine. U.S. District Judge Edward J. Lodge also ordered Rincon to serve ten years of supervised release, and to forfeit $20,000 in U.S. currency. He pleaded guilty to the charge on December 4, 2012.
According to court documents, beginning July 2011, and continuing through December 22, 2011, Rincon participated in drug transactions, distributing fifty grams or more of a substance containing methamphetamine. Three members of the conspiracy have pleaded guilty and have been sentenced: Robin L. Spencer, April Lynne Lauby, and Jacob J. Custodio.
The case was investigated by the Clearwater County Sheriff's Office, Orofino Police Department, Idaho State Police, and Federal Bureau of Investigation.
Leader of Smuggling Ring Ordered to Federal PrisonRead the Press Release
LAREDO, Texas - Oswaldo Rafael Borrego-Ramos aka “Baldo,” 31, a Mexican national and leader of an international smuggling ring, has been sentenced for recruiting local persons to illegally purchase firearms for his organization, United States Attorney Kenneth Magidson announced today. He pleaded guilty to the firearms conspiracy March 6, 2013, admitting he recruited individuals who acquired firearms, ammunition and firearm accessories from stores in Laredo and then had the items smuggled illegally to Nuevo Laredo, Tamaulipas, Mexico.
Today, U.S. District Judge Marina Garcia-Marmolejo, who accepted the guilty plea, handed Borrego-Ramos a sentence of 60 months, 18 of which will be served consecutively to an existing 78-month sentence he is already serving in another case involving other firearm purchases. He is expected to face deportations proceedings following completion of his 96-month sentence.
Investigators with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Homeland Security Investigations (HSI) began a series of investigations into this firearms trafficking organization and discovered Borrego-Ramos directed the acquisition and smuggling into Mexico of at least 32 known illegal firearms since 2008. At least 18 persons involved in the enterprise have been arrested and prosecuted for their participation.
The investigation involved historical purchases made by co-conspirators and illegally smuggled to Mexico before the federal investigations began. Agents traced at least three of those firearms to crime scenes in Mexico. During this investigation, no firearms were permitted to be exported to Mexico.
Borrego-Ramos has been in custody since his arrest on June 26, 2012, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by ATF and HSI with the assistance of the Laredo Police Department and the Webb County Sheriff’s Department. Assistant United States Attorney Homero Ramirez is prosecuting.
Kansas City Man Pleads Guilty in 10-Day Robbery SpreeRead the Press Release
KANSAS CITY, KAN. – A Kansas City, Kan., man has pleaded guilty to committing a series of robberies over ten days in Kansas City, Kan., Roeland Park and Fairway, U.S. Attorney Barry Grissom said today.
Llewellyn Richard, 45, Kansas City, Kan., pleaded guilty to committing the following robberies:
-- Boost Mobile, 3726 State Avenue, Kansas City, Kan., Dec. 21, 2012.
– Nationwide Cellular, 4314 Rainbow Boulevard, Kansas City, Kan., Dec. 21, 2012.
-- Dollar General Store, 2272 Quindaro, Kansas City, Kan., Dec. 24, 2012.
-- Family Dollar, 1251 Central Ave., Kansas City, Kan., Dec. 25, 2012.
-- Quick Service gas station, 7959 State Ave., Kansas City, Kan., Dec. 25, 2012.
-- Boost Mobile, 7640 State Ave., Kansas City, Kan., Dec. 26, 2012.
-- Cricket Store, 4635 Shawnee Drive, Kansas City, Kan., Dec. 27, 2012.
-- Sally's Beauty Supply, 5020 Roe Blvd., Roeland Park, Kan., Dec 28, 2012.
-- Cricket Wireless store, 840 Minnesota Ave., Kansas City, Kan., Dec. 29, 2012.
-- Dollar General, 2801 S. 47th, Kansas City, Kan., Dec. 29, 2012.
-- Family Dollar, 3129 State Ave., Kansas City, Kan., Dec. 30, 2012.
-- Russell Stover store, 2814 Shawnee Mission Parkway, Fairway, Kan., Dec. 30, 2012.
On Jan. 1, 2013, officers of the Kansas City, Kan., Police Department stopped Richard while he was driving a red GMC pickup. When the officers approached the vehicle, he drove off. He was arrested a short distance away after the pickup crashed.Sentencing is set for Oct. 25. A plea agreement calls for both parties to recommend a sentence of 240 months in federal prison.
Grissom commended the Kansas City, Kan., Police Department and Assistant U.S. Attorney Terra Morehead for their work on the case.
KC Man Sentenced to 30 Years for Distributing MethRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine.
Frank G. Rendon, 44, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner to 30 years in federal prison without parole. The court also ordered Rendon to forfeit to the United States $75,000, which represents the proceeds of his illegal drug trafficking.
On May 21, 2012 Rendon pleaded guilty to participating in a conspiracy to distribute 500 grams or more of methamphetamine from Feb. 1, 2006 to May 31, 2010. Rendon admitted that he had an active role in buying and selling methamphetamine with others, including co-defendants Clark L. Vanosdoll, 45, of Lee’s Summit, Mo., and Roxie Boling, 30, of Kansas City, Mo.
Rendon was arrested on Sept. 18, 2007, when Kansas City police officers responded to a call of shots fired at the residence he shared with Boling. Rendon was armed with a shotgun with a pistol grip. Officers executed a search warrant of the residence and seized several plastic bags that contained methamphetamine and a plastic bag that contained marijuana. Officers also found four glass pipes with methamphetamine residue under the couch in the living room, a Western Field .22-caliber rifle, drug paraphernalia (including miscellaneous plastic bags, two electronic digital scales with methamphetamine residue and empty plastic bags with Batman and eight-ball emblems).
Vanosdoll was sentenced on March 29, 2013, to 15 years in federal prison without parole after pleading guilty to his role in the drug-trafficking conspiracy and to being a felon in possession of a firearm. Boling was sentenced on May 3, 2012, to 10 years in federal prison without parole after pleading guilty to her role in the drug-trafficking conspiracy.
This case is being prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes, IV. It was investigated by the Lee’s Summit, Mo., Police Department, the Kansas City, Mo., Police Department, the Independence Mo., Police Department, the U.S. Drug Enforcement Administration, the U.S. Secret Service and the North Kansas City, Mo., Police Department with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).