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25 June 2013
Judge Sentences Bethlehem Resident to More Than 12 Years for Child ExploitationRead the Press Release
PHILADELPHIA - Niyaz Sainudeen, 42, of Bethlehem, PA, was sentenced yesterday to 151 months in prison for distribution, receipt and possession of child pornography. Federal agents found hundreds of images and dozens of videos depicting child pornography on Sainudeen’s computer during a March 8, 2012 search of his home. In July 2011, Sainudeen engaged in a chat session with an undercover agent from Immigration and Customs Enforcement Homeland Security Investigations. As a result of the chat, Sainudeen gave the undercover agent access to a password-protected folder containing child pornography. After being questioned by agents during the March 8, 2012 search of his home, Sainudeen attempted to flee to his native India and was arrested at JFK Airport. Sainudeen pleaded guilty to two counts of distributing child pornography, one count of receipt of child pornography, and one count of possessing child pornography.
In addition to the prison term, U.S. District Court Judge James Knoll Gardner ordered $10,000 restitution, a $400 special assessment and five years of supervised release.
The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Joan E. Burnes.
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.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Judge Sends Felon to Prison for Illegally Possessing PistolRead the Press Release
PITTSBURGH, Pa. - A Pittsburgh felon has been sentenced in federal court to 30 months imprisonment followed by two years supervised release on his conviction of violating federal firearms laws, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Jonathan Menefee, 25, of Pittsburgh, Pa.
According to information presented to the court, on or about Jan. 1, 2012, Menefee, being a convicted felon, illegally possessed a Glock, 9mm pistol. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year to possess a firearm.
Assistant United States Attorney Charles A. Eberle prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Menefee. This case was prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
Jal, N.M., Accountant Pleads Guilty to Federal Fraud and Identity Theft ChargesRead the Press Release
ALBUQUERQUE – Roger L. Baeza, 31, of Jal, N.M., pleaded guilty this morning to 78 counts of securities fraud, one count of access device fraud and one count of aggravated identity theft, announced U.S. Attorney Kenneth J. Gonzales, Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI, and Chief Robert W. Shilling of the New Mexico State Police.
Baeza was charged with fraud and identity fraud offenses in an 81-count indictment filed in Oct. 2012. The indictment alleged that Baeza defrauded two Jal-based businesses, Lea Energy Services, LLC, and Fulfer Oil & Cattle Company, LCC, of more than $500,000 between June 2010 and Feb. 2012, while he was employed as the in-house accountant by the owners of the two businesses. Today, Baeza pled guilty to all but one count of the indictment, an aggravated identity theft charge.
In his plea agreement, Baeza admitted from June 4, 2010 to Feb. 27, 2012, he embezzled approximately $311,960.08 from his employers’ companies by issuing checks on company accounts for cash or for goods and services for his personal use. Baeza also admitted that he covered up his fraudulent conduct by modifying the companies’ accounting records to indicate that the checks had been issued for legitimate purposes.
Baeza also admitted that from June 4, 2010 to Feb. 27, 2012, he used a company credit card issued in the names of his employers to receive payments and items of value in the aggregate amount of $189,267.02. Finally, Baeza admitted using his employer’s name and identity in Feb. 2011, to issue and sign a check on a company account in the amount of $5000.00 and using the money for his personal use.
At sentencing, Baeza faces a maximum penalty of ten years in prison on each of the 78 securities fraud and access device fraud charges. On the aggravated identity fraud charge, Baeza faces a penalty of two years in prison to be served consecutive to any sentence imposed on the fraud charges. Under the terms of his plea agreement, Baeza will be ordered to pay $501,927.10 in restitution to the victims of his criminal conduct. Baeza is in federal custody and will remain detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Roswell office of the FBI and the New Mexico State Police, and is being prosecuted by Assistant U.S. Attorney Norman Cairns.
Informational: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on June 25, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, the following individuals were arraigned:
ANGELA CORSON SMITH, a 32-year-old resident of Billings, appeared on charges of bank fraud, aggravated identity theft, false statements to a bank, and (5) counts of wire fraud scheme. She is currently detained. If convicted of these charges, SMITH faces possible penalties of 30 years in prison, a $1,000,000 fine, and 5 years supervised release on both the bank fraud charge and the false statements to a bank charge. She also faces possible penalties of 20 years in prison, a $250,000 fine, and 3 years supervised release on each charge of wire fraud scheme. In addition, SMITH faces an additional mandatory two year imprisonment, consecutive to any other sentence, for the aggravated identity theft. Assistant U.S. Attorney Jessica T. Fehr is the prosecutor for the United States. The investigation was conducted by the U.S. Secret Service.
GARY LEE PLENTY BUFFALO, a 26-year-old resident of Hardin, appeared on charges of assault with a dangerous weapon and assault resulting in serious bodily injury. He is currently detained. If convicted of these charges, PLENTY BUFFALO faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release on each of the charges. Assistant U.S. Attorney Lori Harper Suek is the prosecutor for the United States. The investigation was conducted by the Bureau of Indian Affairs.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Indictment: Former Insurance Agent Swindled Policy Holders, Retired TeacherRead the Press Release
WICHITA, KAN. – A former insurance agent has been charged in a federal indictment unsealed here today with stealing almost $2 million from policy holders, including a retired teacher known for her philanthropy, U.S. Attorney Barry Grissom said today.
Jason Matthew Pennington, 41, Bel Aire, Kan., is charged in a 51-count indictment alleging the former State Farm Insurance agent defrauded his customers and lied to beneficiaries to cover up the thefts. The counts include wire fraud and attempted wire fraud, money laundering, attempted bank fraud and making false statements to a financial institution. Pennington’s father, James L. Pennington, 65, Wichita, also is charged with four counts of filing false tax returns.
The indictment alleges that one of Pennington’s victims was Marlene Brown, who retired in 1994 following a 37-year career with the Wichita Public Schools where she served as teacher, coach and school administrator. She endowed the Marlene M. Brown Fund for the Department of Counseling, Leadership, Educational and School Psychology in the College of Education at Wichita State University.
The indictment alleges that before she died in October 2009 Brown purchased a life insurance policy from State Farm through Jason Pennington worth more than $1.3 million. She designated the Marlene M. Brown Revocable Trust as the owner and beneficiary of the policy.
In November 2008 Pennington processed a request to obtain more than $99,484 in cash from the policy. He deposited the money into his State Farm account at Home Bank & Trust Company in Wichita, and used the money to pay his personal expenses. In March 2009 Pennington entered into a contract to build a $590,000 home at 7972 E. Caribou Place in Bel Aire. By the time the house was completed in 2010, it cost approximately $650,000.
In loan application papers, Pennington failed to disclose that he was required to make monthly child support and alimony payments and that he had a line of credit and a mortgage. He also claimed as an asset an Individual Retirement Account that in fact belonged to Brown.
In June 2009, Personal Property Memoranda were purportedly created and signed by Brown allocating the percentages her charitable beneficiaries would receive and another bequeathing the remaining money to Pennington and his family and associates. Included was a bequeath of more than $1 million to Pennington.
In the following months, Pennington took money from Brown’s policy and changed the address on Brown’s insurance policy from Brown’s address to his own business address at 11040 W. Central, #108 in Wichita.
After Brown died in October 2009, Pennington collected several bags of documents from her home. He later lied to trust beneficiaries and provided them with false documents to cover up the fact he had taken the bulk of her estate for himself. He told beneficiaries that Brown’s 2002 Lincoln LS automobile had been given to a single mother. In fact, he gave the car to his father, James Pennington. He told beneficiaries that two television sets belonging to Brown were given to a young family. In fact, he planned to give the TVs to his father. He told beneficiaries that a baseball autographed by members of the New York Yankees would be given to Brown’s physician. In fact, he planned to keep the ball. He told beneficiaries that some of Brown’s estate was going to the Kansas Humane Society. In fact, the organization received no money. He told beneficiaries that part of Brown’s estate was going to Wichita State University. In fact, WSU did not receive the money.
Other victims included a couple from Garden Plain, Kan., who purchased a life insurance policy valued at more than $3.4 million through Pennington. Pennington fraudulently processed more than $1 million worth of loan requests even though the Hills were not aware the loans were being applied for in their names.
Upon conviction, the alleged crimes carry the following penalties: Wire fraud and attempted wire fraud: A maximum penalty of 20 years and a fine up to $250,000 on each count.
Mail fraud and attempted mail fraud: A maximum penalty of 20 years and a fine up to $250,000 on each count.
Money laundering: A maximum penalty of 10 years and a fine up to $250,000 on each count.
Bank fraud: A maximum penalty of 30 years and a fine up to $1 million on each count.
Making a false statement to a financial institution: A maximum penalty of 30 years and a fine up to $250,000.
Filing false tax returns: A maximum penalty of three years and a fine up to $100,000 on each count.The FBI and IRS - Criminal Investigation investigated. Assistant U.S. Attorney Lanny Welch and Assistant U.S. Attorney Aaron Smith are prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indictment Alleges Hobbs Act Robbery, Gun and Drug ChargesRead the Press Release
Antonio Jeffcoat, 25, was charged today by indictment with Hobbs Act robbery, using and carrying a firearm during and in relation to a crime of violence and a drug trafficking crime, and possession with the intent to distribute Schedule II narcotics. The indictment charges that the defendant committed these offenses in Philadelphia, Pennsylvania, on or about April 23, 2013.
If convicted of all charges, the defendant faces a mandatory minimum sentence of seven years in prison with a maximum of life in prison, a mandatory minimum of six years of supervised release, a $2,500,000 fine, and a $300 special assessment.
This case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney V. Paige Pratter.Click here to view the indictment
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Illinois Man Charged with Illegally Distributing Peptides and HGHRead the Press Release
PITTSBURGH - A resident of Park Ridge, Ill., has been indicted by a federal grand jury in Pittsburgh on charges of mail fraud, misbranding of drugs, distribution of human growth hormone and money laundering, United States Attorney David J. Hickton announced today.
The 11-count indictment named Ronald J. DeFranco, 54, as the sole defendant.
According to the indictment, DeFranco maintained a website for the illegal distribution of peptides - chemical compounds that require a prescription for dispensation, but which are illegitimately sought by body builders for muscle enhancement. DeFranco deceived the Internet service provider and the FDA by falsely representing on the website that he was selling these substances "for research purposes only . . . not for human consumption." In addition to sales of peptides, DeFranco also allegedly sold human growth hormone (HGH) without the required physician's prescriptions. During the period from May 2010 until January 2011, DeFranco allegedly paid $94,777.40 in Western Union and bank wire transfers to acquire these substances from suppliers in the Peoples Republic of China.
The law provides for a maximum total sentence of 20 years in prison and a fine of $250,000 on each of four mail fraud counts; three years in prison and a fine of $250,000 on each of four misbranding counts; five years in prison and a $250,000 fine on each HGH distribution count; and 20 years in prison and a fine of $500,000 on the money laundering count. 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 Leo M. Dillon is prosecuting this case on behalf of the government.
The prosecution arose from the combined efforts of agents with the FDA Office of Criminal Investigations, IRS - Criminal Investigation and the DEA.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Identity Thief SentencedRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Maurice Hester, of Milledgeville, Georgia, was sentenced today by the Honorable Marc T. Treadwell in Macon, Georgia, to serve a total of sixty-four (64) months in prison and three (3) years of supervised release following his guilty plea to Filing False Claims Against the Government and Wire Fraud, Aggravated Identity Theft, and Theft of Government Property. The Court ordered Mr. Hester to pay restitution in the amount of $32,129.00 and a $700.00, mandatory assessment fee.
On April 8, 2013, Mr. Hester entered a guilty plea to Filing False Claims against the Government and Wire Fraud by filing false income tax returns and fraudulent claims for refunds, including one claim for a fraudulent refund of over $600,000. In addition, Mr. Hester pleaded guilty to Aggravated Identity Theft by filing tax returns in the names of others and then transmitting false refunds into his own bank accounts. Mr. Hester also pleaded guilty to Theft of Government Property for the false income tax refunds that were deposited into his bank account. The Indictment also charged Mr. Hester with Mail Fraud for unlawfully diverting the mail of another taxpayer, so the he could wrongfully intercept a U.S. Treasury check.
Income verification documents showed that Mr. Hester did not earn the wages he reported on his personal income tax return and the returns were completely false. He fraudulently listed his profession as “authorized agent” when in fact, he was a barber filing illegal tax returns.
“The prison time received by Mr. Hester should serve as a strong warning that tough punishment awaits those who embark on a similar criminal path,” said Veronica Hyman-Pillot, Special Agent in Charge, IRS-Criminal Investigation. “As the defendant in this case has learned, stealing from the American people will not be tolerated and you will be held accountable.”
“When Mr. Hester stole from the government with his tax and identity theft scheme, he didn’t steal from some faceless entity; he stole from every good, law-abiding tax-paying citizen. We won’t allow our Treasury to be raided, just like we would not allow our personal bank accounts to be robbed, by Mr. Hester or anyone else,” said U.S. Attorney Michael Moore.
The investigation was handled by the United States Secret Service and Internal Revenue Service Criminal Investigation. Assistant United States Attorney Graham Thorpe prosecuted the case for the Government.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Honduran Man Charged in Alien Smuggling CaseRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Honduran man for transporting illegal aliens in the United States and for illegally re-entering the country after having twice been deported last year, announced U.S. Attorney Joyce White Vance and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Special Agent in Charge Raymond R. Parmer Jr.
The indictment filed in U.S. District Court charges ALLAN GUALBERTO MEJIA-PONCE, 34, with transporting illegal aliens on May 17 and with aggravated illegal re-entry after deportation. Mejia-Ponce was deported from the United States on Feb. 13, 2012, and July 24, 2012. The indictment also charges five other people with illegal re-entry after deportation.
“At the time of his arrest, Mejia-Ponce, who previously had been deported from the United States, was transporting 14 individuals who were also unlawfully present in the United States,” Vance said. “Trafficking people across borders and within the United States violates the laws of this country. We are committed to ending this trafficking,” she said.
Indicted along with Mejia-Ponce for illegal re-entry after deportation are:
NELSON LIMA-ARANA, 20, of Guatemala, previously deported Feb. 17; YOLOXOCHITI CASTRO-ANGELES, 21, of Mexico, previously deported April 12; JESUS TORRES-PAREDES, 21, of Mexico, previously deported Feb. 28; JOSE ARIEL GUEVARA-RUIZ, 27, of El Salvador, previously deported Jan. 18; MIGUEL ANGEL RUIZ-GUEVARA, 26, of El Salvador, previously deported March 12, 2006, and Jan. 20, 2010.
The maximum sentence for transporting illegal aliens is 10 years in prison and a $250,000 fine. The maximum sentence for aggravated illegal re-entry after deportation is 20 years in prison and a $250,000 fine.
HSI investigated the case, which Assistant U.S. Attorney Michael W. Whisonant Sr. is prosecuting.
Members of the public are reminded that the indictment contains only charges. A defendant is presumed innocent and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.
Heroin Dealer Exiled to 13 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Antonio Lamont Johnson, a/k/a Tracey Johnson, age 44, of Baltimore, Maryland, today to 13 years in prison, followed by four years of supervised release, for conspiracy to distribute and possession with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Colonel Michael Kundrat, Chief of the Maryland Transportation Authority Police; Baltimore City State’s Attorney Gregg L. Bernstein; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore Police Commissioner Anthony W. Batts.
“Today's sentencing exiles a heroin distributor and career criminal to federal prison,” stated Karl C. Colder, Special Agent in Charge of the Drug Enforcement Administration, Washington Field Division. “This is drug interdiction at its best. Quick and effective cooperation between our law enforcement partners in conjunction with the utilization of various investigative techniques brought this case to a successful conclusion,” added Colder.
According to his plea agreement, on September 2, 2012, DEA agents stopped a car carrier in El Paso, Texas. A drug detection dog alerted on a vehicle on the carrier, registered in Pikesville, Maryland, for the presence of narcotics. Investigators discovered a hidden compartment in the roof of the vehicle containing 4.6 kilograms of heroin, with a wholesale value of approximately $300,000.
Investigators brought the car carrier and the vehicle to Baltimore and a controlled delivery of the heroin was made on September 6, 2012. Johnson was seen paying the truck driver and then driving the vehicle into Baltimore. Johnson met with a co-conspirator, who took possession of the vehicle and parked it in a secluded section of a parking lot. They accessed the heroin. Agents then approached the vehicle and saw a kilogram open to view next to the co-conspirator, who was seated in the driver’s seat. Johnson and the co-conspirator were arrested.
United States Attorney Rod J. Rosenstein commended the DEA, Maryland Transportation Authority Police, Baltimore County Police Department, Baltimore Police Department and Baltimore City State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James G. Warwick and David I. Sharfstein, who prosecuted the case.
Goodwin Announces Indictment of Mingo County Man on Illegal Firearm Possession ChargesRead the Press Release
Maynard is accused in the April 2013 shooting death of Mingo County Sheriff Eugene Crum
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Tennis Maynard, 37, of Delbarton, Mingo County, W.Va., has been indicted by a federal grand jury sitting in Charleston with possession of a firearm by an individual who had been committed to a mental institution and making a false statement in acquisition of a firearm. Maynard is accused in the April 2013 shooting death of Mingo County Sheriff Eugene Crum.
U.S. Attorney Booth Goodwin said, “My office remains thoroughly committed to keeping guns out of the hands of individuals who cannot legally have them.”
According to the 10-count indictment, Maynard allegedly made a false statement on a Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Form 4473 (or Form 4473) on five separate occasions.
The indictment also alleges that Maynard possessed a firearm on five separate occasions. At all of the times the defendant allegedly possessed a firearm, he had previously been committed to a mental institution.
Maynard faces up to 75 years in prison if he is convicted.
The investigation is being conducted by the ATF. Assistant United States Attorney Steven Loew is in charge of the prosecution.
A Form 4473 is a form that an individual must complete when a firearm is purchased from a federally licensed firearms dealer. Making a false statement on this form is a felony.
The case is being brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Note: The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Click here to view a copy of the indictment
Fugitive Armed Robber Who Shot at Deputy United States Marshals Sentenced to 241 Months’ ImprisonmentRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, New York, the Honorable Sandra L. Townes, United States District Judge, sentenced Derome Gray to 241 months in prison for the armed robbery of a post office in Queens, New York, and for shooting at the Deputy U.S. Marshals who ultimately tracked him down and apprehended him.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Charles G. Dunne, United States Marshal for the Eastern District of New York; Philip R. Bartlett, Postal Inspector-in-Charge, United States Postal Inspection Service; and Joseph Anarumo, Jr., Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York Field Division.
Early in the morning of June 8, 2007, the defendant and others subdued three Postal Service employees at gunpoint, stole cash from the victims and from several lock boxes, herded the employees into a vault, and fled. An investigation by United States Postal Inspectors quickly identified the robbers, including Gray. The other individuals involved in the robbery were apprehended shortly after the robbery and were convicted of their crimes. Gray, however, fled New York and became a fugitive, hiding in Virginia before returning to New York. For four years, Postal Inspectors and the United States Marshals Service hunted Gray before finally locating him at a residence in Queens, New York, where he had sought safe harbor and support from an associate.
On October 3, 2011, U.S. Marshals and other members of the Regional Fugitive Task Force entered the home to arrest Gray. Gray responded by firing two rounds in the Marshals’ direction, which fortunately were deflected. The Marshals immediately apprehended Gray and an associate without firing a shot. Several firearms, including a cache of semiautomatic handguns and rifles, were seized from the home. Special Agents of the ATF responded to the scene and led the investigation into the events arising from Gray’s arrest.
“With a pistol in his hand, the defendant brazenly invaded a United States Post Office and put the lives of three postal workers in jeopardy. Then, for more than four years, he led investigators on a manhunt up and down the Eastern seaboard. Finally, when confronted by the U.S. Marshals, the defendant tried to shoot his way out, again putting the lives of our public servants at risk. He has now been held to account for his crimes,” stated United State Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the U.S. Marshals, Postal Inspectors and ATF agents for their outstanding work.
The government’s case was prosecuted by Assistant United States Attorneys Seth DuCharme and Justin Lerer.
The Defendant
DEROME GRAY
Alias: “Rome”
Age: 42Fort Thompson Man Charged with Assaulting, Resisting and Impeding Federal OfficersRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota man has been indicted by a federal grand jury.
Patrick B. Wind, a/k/a Patrick Azure, age 21, was indicted by a federal grand jury on June 12, 2013 for Assaulting, Resisting and Impeding Federal Officers. Azure appeared before U.S. Magistrate Judge Mark A. Moreno on June 21, 2013 and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release, an additional 2 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusations and Azure is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Azure was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Fort Dodge Man to Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to manufacture and distribute methamphetamine was sentenced June 19, 2013, to eleven years in federal prison.
Randy Feauto, 31, from Fort Dodge, Iowa, received the prison term after a February 22, 2013, guilty plea to one count of conspiracy to manufacture and distribute methamphetamine and one count of possession of a firearm by a felon. On February 6, 2012, Feauto was convicted of delivery of a simulated controlled substance in the Iowa District Court for Buena Vista County.
At the guilty plea, Feauto admitted his involvement from about 2009 through September 2012, in a conspiracy to manufacture and distribute 50 grams or more of actual (pure) methamphetamine in the Fort Dodge, Iowa, area. On two occasions in May 2011, Feauto distributed over 2 grams of actual (pure) methamphetamine to an individual cooperating with law enforcement. Feauto possessed a .380 auto handgun in connection with his drug trafficking offenses. On August 17, 2012, in Fort Dodge, Iowa, law enforcement officers executed a search warrant at Feauto’s residence and officers seized the firearm from between the mattress and box spring in Feauto’s bedroom. Officers also seized a quantity of MSM (a known cutting agent for methamphetamine), marijuana and digital scales.
Feauto was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Feauto was sentenced to 132 months’ imprisonment. A special assessment of $200 was imposed. He must also serve a ten-year term of supervised release after the prison term. There is no parole in the federal system.
Feauto is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Iowa Division of Narcotics Enforcement, Webster County Drug Task Force, Webster County Sheriff’s Office, Fort Dodge Police Department, and Iowa Division of Criminal Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-3046.
Former Schoolteacher Faces Federal Charges for Orchestrating A $1 Million Ponzi SchemeRead the Press Release
CHARLOTTE, N.C. – A former schoolteacher faces federal charges for orchestrating a Ponzi scheme that took over $1 million from investor victims, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. A criminal bill of information filed on Monday, June 24, 2013, in U.S. District Court charged C. David Wright, 52, of Iron Station, N.C. with one count of mail fraud in connection with the Ponzi scheme.
Greg McLeod, Director of the State Bureau of Investigation (SBI) and Keith Fixel, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS) join U.S. Attorney Tompkins in making today’s announcement.
The filed criminal bill of information alleges that Wright engaged in a scheme and artifice to defraud victims by making a series of false and fraudulent representations, omissions of material facts and deceptive half-truths. According to information contained in the charging document, beginning in August 2008 and continuing through March 2013, Wright executed a Ponzi scheme by inducing victims to invest in a “Commodity Investment Group” based in Cherryville, N.C., which Wright purportedly managed. According to court documents on the record, Wright collected over $1 million from investor victims through false and fraudulent misrepresentations. Court records show that Wright lied to investors by promising a 20-30% return on their investments, over a short period of time, when Wright knew that this return was not possible. Wright also misled his victims by falsely representing to his victims that his Commodities Investment Group would invest money in hedge funds, commodities and Quick Trip stores. Court records indicate that Wright falsely told his victims that the Commodities Investment Group owned a significant number of Quick Trip gas stations and had even sold one for $1.6 million.
According to court records, Wright did not invest the over $1 million he collected from investor victims as promised. Instead, Wright used the money to make Ponzi style payments to other victims and to fund his personal lifestyle, according to court records. In some instances, as filed documents show, Wright took a large percentage of victim money immediately upon the initial deposit. Court records show that Wright was known to carry a significant amount of cash in a black duffel bag. Court records also show that Wright required many victims to invest by cashier’s check. Many local victims would invest by meeting Wright in a parking lot in Cherryville, while out-of-state victims would mail money for investment to Wright’s post office box in Cherryville. According to court documents, over $500,000 in principle owed to the victims has been misappropriated by Wright, and as of March 2013, Wright had less than $1,000 left of the investors’ fund. Wright has agreed to plead guilty to the mail fraud charge.
Wright’s initial appearance and plea hearing have not been set yet by the Court. At sentencing, Wright faces a maximum of 20 years in prison and a $250,000 fine. As part of his plea agreement, Wright has agreed to pay full restitution to his victims, the amount of which will be determined by the Court at sentencing.
In a related action, yesterday the Commodities Futures Trading Commission (CFTC) also filed a civil enforcement action against Wright.
The charges contained in the indictment are allegations. The defendant is presumed innocent unless and until he is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by USPIS and SBI. U.S. Attorney Tompkins also acknowledged the invaluable assistance of CFTC in this case.
The prosecution is being handled by Assistant U.S. Attorney Kurt W. Meyers of the Western District of North Carolina.
The President’s Financial Fraud Enforcement Task Force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit www.stopfraud.gov.
Former Postal Carrier Indicted for Stealing Cash, Gift Cards from the MailRead the Press Release
MINNEAPOLIS—A federal indictment unsealed late last week charges a former postal carrier with stealing cash and gift cards from the U.S. mail. The indictment, which was filed on June 11, 2013, charges Bobbi J. Ouradnik, age 27, of Hinckley, with one count of theft of mail by postal employee. The indictment was unsealed following Ouradnik’s initial appearance in federal court on Friday, June 21, 2013.
The indictment alleges that from July 2011 and July 3, 2012, Ouradnik stole currency and gift cards from letters and envelopes she was entrusted to deliver. At the time, she was employed as a rural carrier for the Harris Post Office.
If convicted, Ouradnik faces a potential maximum penalty of five years in federal prison. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the United States Postal Service-Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Nathan P. Petterson.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Former Pineville Official Sentenced to Federal Prison for EmbezzlementRead the Press Release
Phillips-Ellis stole thousands in federal program aid money
BECKLEY, W.Va. – A former Town of Pineville official was sentenced on June 25 to a year and a half in federal prison in connection with an embezzlement scheme that siphoned a total of more than $80,000 in federal aid intended to support the town’s school safety initiative and a McDowell County housing organization, announced U.S. Attorney Booth Goodwin. Brandee Denise Phillips-Ellis, 30, of Pineville, W.Va., previously pleaded guilty in March to theft concerning programs receiving federal funds. Between March 2009 and December 27, 2011, Phillips-Ellis embezzled federal funds during her employment as the city manager and recorder for the Town of Pineville.
U.S. Attorney Booth Goodwin said, “It’s inexcusable when people abuse a position of trust to line their pockets with money that was intended to support two essentials of a strong community: housing and schools.” Goodwin continued, “Criminals who steal from public coffers are not only breaking the law---they’re hurting communities that count on every dollar to provide and maintain services for their citizens.”
During January 1, 2010 and December 31, 2010, the Town of Pineville received approximately $10,000 in funding under the Safe Routes to School Program, a federal aid program administered by the United States Department of Transportation’s Federal Highway Administration.
Phillips-Ellis illegally took twelve Town of Pineville checks totaling $14,649.83 to pay her husband’s personal credit card bills. The defendant also wrote and cashed reimbursement checks from the Town of Pineville’s accounts and took $3,295.56 for her personal use. Additionally, Phillips-Ellis wrote eleven Town of Pineville payroll checks to herself, totaling $20,427.50. Phillips-Ellis also cashed a Town of Pineville check for $4,569.58 and used the proceeds in connection with the purchase of a personal vehicle.
Phillips-Ellis told investigators that during her employment at SAFE Housing and Economic Development, Inc. (SHED) in McDowell County, she falsified documents in order to receive $36,380 in payments as a vendor that she was not entitled to receive. Phillips-Ellis was a full-time employee at SHED from about April 2006 through May 2009. Phillips-Ellis also worked part-time for the organization from May 2009 until December 2011. SHED is a non-profit organization that provides housing opportunities to low income first-time homebuyers.
In total, Phillips-Ellis admitted that she embezzled a combined total of $80,489.96 from the Town of Pineville and SHED.
The Court ordered the defendant to pay restitution in the amount of $80,489.96.
The investigation was conducted by the West Virginia Commission on Special Investigations. Assistant United States Attorney Eumi Choi handled the prosecution.
This case was prosecuted as part of U.S. Attorney Goodwin’s Small Business Protection Initiative. U.S. Attorney Booth Goodwin announced the Small Business Protection Initiative in November 2010.
Former Hadley Man Sentenced for Drug ConspiracyRead the Press Release
BOSTON – A former Hadley man was sentenced today in U.S. District Court in Springfield for conspiring to distribute more than five kilograms of cocaine.
Pablo Drullard, 32, was sentenced by U.S. District Judge Michael A. Ponsor to 10 years in prison, to be followed by four years of supervised release. In February 2013, Drullard pleaded guilty to conspiring to distribute more than five kilograms of cocaine.Between July 31, 2010, and May 2, 2011, Drullard and others participated in a criminal conspiracy to deliver kilograms of cocaine from Texas to western Massachusetts.
United States Attorney Carmen M. Ortiz, John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Kevin O’Regan of Ortiz’s Springfield Office.
Former HUD Director Sentenced on Fraud and Bribery ChargesRead the Press Release
St. Louis, MO - Former HUD director Lavern Charles Hester was sentenced to 18 months in prison and 2 years of supervised release.
According to court documents, Charles Hester was employed by HUD as Director of Multifamily in the St. Louis field office. He was responsible for approving and overseeing the FHA financing of multi-family properties. In June 2007, Donald Robinson and Crevonda Cramer purchased a HUD subsidized multi-family property known as Chevy Chase Apartments located in Mexico, MO, through a company New Beginnings Redevelopment II, LLC. Between June 2007 and December 2008, Hester accepted $38,000 in payments from Robinson and Cramer to facilitate Hester’s approval of a $1.5 million FHA insured refinancing of the mortgage on Chevy Chase Apartments, as well as the release of construction funds associated with the rehab of Chevy Chase.
CHARLES HESTER, Florissant, MO, pled guilty last September to one felony count of conspiracy to provide and accept an illegal gratuity. He appeared today for sentencing before United States District Judge John A. Ross.
Co-defendant Donald Robinson pled guilty to related charges and was sentenced today to six months in jail, plus six months home confinement.
This case was investigated by the U.S. Department of Housing and Urban Development, Office of the Inspector General. Assistant United States Attorney Stephen Casey is handling the case for the U.S. Attorney’s Office.Former Executive at Florida-Based Lender Processing Services Inc. Sentenced to Five Years in Prison for Role in Mortgage-Related Document Fraud SchemeRead the Press Release
A former executive of Lender Processing Services Inc. (LPS) – a publicly traded company based in Jacksonville, Fla. – was sentenced today to serve five years in prison for her participation in a six-year scheme to prepare and file more than 1 million fraudulently signed and notarized mortgage-related documents with property recorders’ offices throughout the United States, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Middle District of Florida Robert E. O’Neill and Special Agent in Charge Michelle S. Klimtof the FBI Jacksonville Division.
Lorraine Brown, 56, of Alpharetta, Ga., was sentenced by Senior U.S. District Judge Henry Lee Adams Jr. in the Middle District of Florida. In addition to her prison term, Brown was sentenced to serve two years of supervised release and ordered to pay a fine of $15,000.On Nov. 20, 2012, Brown pleaded guilty to conspiracy to commit mail and wire fraud.“Lorraine Brown will spend five years in prison for her central role in a scheme to fraudulently execute thousands of mortgage-related documents while our nation’s housing market was at its most vulnerable point in generations,” said Acting Assistant Attorney General Raman. “The documents that were fraudulently produced under Brown’s direction were relied upon in court proceedings, including a significant number of foreclosure and bankruptcy matters. Today’s sentencing represents appropriate punishment for someone who sought to capitalize on the nation’s housing crisis.”
“Floridians were hard hit by the downturn in the real estate market,” said U.S. Attorney O’Neill. “We will continue to pursue individuals like Brown who took advantage of consumers for personal gain and contributed to the financial crisis. Prosecuting financial crimes remains a priority for our office.”
“The investigation of sophisticated mortgage and corporate fraud schemes continues to be a priority for the Federal Bureau of Investigation as such criminal activities have a significant economic impact on our community,” said Special Agent in Charge Klimt.
Brown was an executive at LPS and the chief executive of DocX LLC, which was a wholly-owned subsidiary of LPS, until it was closed down in early 2010. DocX’s main clients were residential mortgage servicers, which typically undertake certain actions for the owners of mortgage-backed promissory notes. Servicers hired DocX to, among other things, assist in creating and executing mortgage-related documents filed with recorders’ offices.
According to Brown’s plea agreement, employees of DocX, at the direction of Brown and others, began forging and falsifying signatures of authorized personnel on the mortgage-related documents that they had been hired to prepare and file with property recorders’ offices. Only specific personnel at DocX were authorized by clients to sign the documents, but the documents were fraudulently notarized as if actually executed by authorized DocX employees.
According to plea documents, Brown implemented these signing practices at DocX to enable DocX and Brown to generate greater profit. Specifically, DocX was able to create, execute and file larger volumes of documents using these signing and notarization practices. To further increase profits, DocX also hired temporary workers to act as authorized signers. These temporary employees worked for much lower costs and without the quality control represented by Brown to DocX’s clients. Some of these temporary workers were able to sign thousands of mortgage-related instruments a day. Between 2003 and 2009, DocX generated approximately $60 million in gross revenue.After these documents were falsely signed and fraudulently notarized, Brown authorized DocX employees to file and record them with local county property records offices across the country. Many of these documents were later relied upon in court proceedings, including property foreclosures and federal bankruptcy actions. Brown admitted she understood that property recorders, courts, title insurers and homeowners relied upon the documents as genuine.
This case is being prosecuted by Trial Attorney Ryan Rohlfsen and Assistant Chief Glenn S. Leon of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mark B. Devereaux of the U.S. Attorney’s Office for the Middle District of Florida. This case was investigated by the FBI, with assistance from the state of Florida’s Department of Financial Services.
This case is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov
Former DOJ Attorney Sentenced to Ten Years ForAttempt to Entice A Minor to Engage in Criminal Sexual ActivityRead the Press Release
Karl Norman Gellert, 48, of Bellevue, Tennessee was sentenced Friday in U.S. District Court in Nashville to Attempt to Entice a Minor to Engage in Criminal Sexual Activity, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee.
Chief Judge William Joseph Haynes, Jr. sentenced Gellert to 10 years of incarceration, to be followed by 20 years of supervised release during which time he will be required to register as a sex offender and participate in sex offender treatment, among other conditions.
“The U.S. Attorney’s office is committed to protecting our children who are powerless from protecting themselves from sexual predators,” said Acting U.S. Attorney David Rivera. “No one is above the law and no one gets a pass, we will pursue the evidence to wherever it leads.”
According to the plea agreement, in early April of 2012, Gellert communicated online with an undercover agent whom he believed to be an eleven year old girl who had never engaged in sexual activity with anyone. Gellert’s communication involved chess, his family, school, relationships, and sex. During multiple online conversations, he provided instructions on how to engage in sexual activities and transmitted images of himself engaging in such activity, as well as images of adult pornography, and a link to a website for sexual devices. He asked if she would be interested in engaging in sexual activity with him in person and encouraged her to engage in sexual activity in preparation for his visit. After communicating online numerous times with this individual whom he believed to be an eleven year old girl, he began also engaging in online discussions with whom he believed to be the child’s mother, but who was the same undercover agent. He also instructed the person whom he believed to be the child’s mother about what do to prepare this child for his sexual abuse of her. The communication continued through early June of 2012.
Prior to engaging in this illegal activity, Gellert had been an attorney with the Department of Justice in Washington, D.C. through 2009.
This matter was investigated by the Metropolitan Nashville Police Department, the Federal Bureau of Investigation, and the United States Attorney’s Offices for the Middle District of Tennessee and the Eastern District of Virginia. The United States was represented by Assistant U.S. Attorneys S. Carran Daughtrey and Alicia Yass.Florida Investment Fund Manager Pleads Guilty in Manhattan Federal Court in Connection with $13 Million Securities Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that CRAIG L. BERKMAN pled guilty today in Manhattan federal court to securities fraud and wire fraud in connection with a more than $13 million scheme to defraud investors through false ownership claims of stock in Facebook, Inc. (“Facebook”); Groupon, Inc. (“Groupon”); LinkedIn, Inc. (“LinkedIn”); and Zynga, Inc. (“Zynga”) before their respective initial public offerings, and in other private companies. BERKMAN was arrested in March 2013 in connection with the scheme, and pled guilty today before United States Magistrate Judge Kevin Nathaniel Fox.
Manhattan U.S. Attorney Preet Bharara stated: “Through various misrepresentations, Craig Berkman enticed investors with highly coveted investment opportunities, and then swindled them out of millions of dollars, using much of it for his personal benefit. Today’s guilty plea ensures that he will be held to account for his conduct.”
According to the charging instruments in this case and statements made in open court today at the plea proceeding:
From 2010 until his arrest in March 2013, BERKMAN served as the managing member of a series of limited liability companies, which he effectively controlled, including Face-Off Acquisitions, LLC; Assensus Capital, LLC; and several LLCs with variations of the words “Ventures Trust” in their names (the “Ventures Trust LLCs”). Beginning in about October 2010, BERKMAN and others offered investors the opportunity to purchase units of each of these LLCs. In doing so, BERKMAN misrepresented to investors that the LLCs either owned or would soon acquire pre-initial public offering shares in various technology companies, including Facebook, Groupon, LinkedIn, and Zynga. BERKMAN also misappropriated millions of dollars of investor funds for his own use and benefit.
The ways in which BERKMAN carried out his scheme often varied with each of the LLCs. In one instance, BERKMAN represented to investors that various Ventures Trust LLCs held large quantities of pre-IPO shares of Facebook, Groupon, LinkedIn, and Zynga. In fact, the Ventures Trust LLCs held no shares of Groupon, LinkedIn, or Zynga, and held only a small, indirect interest in pre-IPO Facebook shares. In another example, BERKMAN falsely told investors with Face-Off Acquisitions, LLC that their money would be used to purchase an existing special purpose vehicle, which already held a significant stake in Facebook. BERKMAN also misrepresented to Assensus Capital Investors, LLC investors that he would use their money to fund various start-ups, including technology, medical device, and energy companies, and that the investors’ funds would be partially secured by interests in pre-IPO Facebook stock. In fact, BERKMAN misappropriated most, if not all, of the investors’ money for his own use and benefit.
Ultimately, BERKMAN raised at least approximately $13.2 million in funds from more than 120 different investors, which he used for various unauthorized purposes. BERKMAN used approximately $6 million in stolen investor funds to pay off creditors in his personal bankruptcy, and in doing so, he misrepresented the source of those funds to the Bankruptcy Court. BERKMAN also used approximately $4.8 million of new investor money to pay off earlier investors, and spent approximately $1.6 million on legal fees, travel, other personal expenses, and in cash withdrawals, among other things.
BERKMAN, 71, of Odessa, Florida, pled guilty to one count of securities fraud and one count of wire fraud. He faces a maximum sentence of 20 years in prison on each count, a fine of the greater of $5 million or twice the gross gain or gross loss from the offense on the securities fraud charge, and a fine of a lesser amount on the wire fraud charge. In connection with his guilty plea, BERKMAN agreed to pay restitution to the victims of his offenses and consented to forfeit approximately $13.2 million. He will be sentenced before U.S. District Court Judge Shira A. Scheindlin on October 1, 2013.
Mr. Bharara praised the work of the Criminal Investigators of the U.S. Attorney’s Office and the United States Postal Inspection Service, which jointly investigated this case. He also thanked the U.S. Securities and Exchange Commission.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys John J. O’Donnell and Matthew L. Schwartz are in charge of the prosecution.
US v. Craig Berkman Information
Felon Sentenced to 4 Years in Prison for Possessing A FirearmRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been sentenced in federal court to 48 months in prison and three years supervised release on his conviction of violating federal firearms laws, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on George A. Robinson, 22.
According to information presented to the court, on May 10, 2011, Robinson possessed a Taurus PT111 Millennium Pro 9mm pistol. On August 27, 2009, Robinson was convicted in Cambria Co., Pa., of criminal attempt burglary, which is a crime punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms or ammunition.
Assistant U.S. Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
According to Mr. Hickton, this case was prosecuted as part of Project Safe Neighborhoods initiative, a collaborative effort by federal, state and local law enforcement, agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
Mr. Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Johnstown Police Department for the investigation leading to the successful prosecution of Robinson.
Federal Jury Convicts Wethersfield Resident of Running Fraudulent Debt Elimination SchemeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that a federal jury in Hartford has found DEOWRAJ “DEO” BUDDHU, 70, formerly of Wethersfield, guilty of multiple charges related to his operation of a fraudulent debt elimination scheme. The trial before Chief United States District Judge Alvin W. Thompson began on June 5 and the jury returned its verdict this afternoon after deliberating for less than one hour.
“This defendant’s fictitious debt elimination scheme defrauded numerous struggling homeowners, many of whom were immigrants with little command of the English language,” stated Acting U.S. Attorney Daly. “He took thousands of dollars from his victims, knowing it would make their unsteady financial situation even worse, and used the funds to pay his own personal expenses. All distressed homeowners must steer clear of such schemes and seek legitimate assistance for financial difficulties. I want to thank IRS – Criminal Investigation and HUD-OIG for their work on this case, and our other law enforcement partners who are committed to prosecuting individuals who victimize individuals through financial fraud schemes.”
According to the evidence introduced during the trial and statements made during prior court proceedings, between February 2009 and June 2012, BUDDHU sold a debt elimination “program” to several vulnerable individuals through various businesses, including Paradise Consulting Service, Hema, Inc., and Secured Redemption. In exchange for substantial fees, BUDDHU told victims about a little-known government fund that could be used to pay off their mortgages and other debts. In fact, no such fund exists. BUDDHU advised victims to stop making payments on their mortgages and other debts, including property taxes. He also provided his victims with fictitious promissory notes, which he called “bonds,” as well as other frivolous documentation, which he told victims they could use to pay their debts. BUDDHU’s daughter, Sunita Buddhu, a licensed notary public, notarized documents provided to the victims as part of the program. Victims were directed to present the fraudulent promissory notes and other documentation to banks and other creditors.
By ceasing their mortgage payments and other obligations, BUDDHU’s victims ended up in foreclosure proceedings and are at risk of losing their homes and other assets.
BUDDHU also prepared and directed victims to file frivolous lawsuits, documents, motions, and other purported legal documents with the state courts in Connecticut and elsewhere.
The jury found BUDDHU guilty of six counts of mail fraud and seven counts of issuing, selling and presenting fictitious financial instruments. Chief Judge Thompson has scheduled sentencing for September 17, 2013, at which time BUDDHU faces a maximum term of imprisonment of 30 years on each count of mail fraud, and a maximum term of imprisonment of 25 years on each count of passing fraudulent financial instruments.
BUDDHU has been detained since his arrest on June 11, 2012.
On October 10, 2012, Sunita Buddhu, 43, pleaded guilty to one count of issuing, selling and presenting fictitious financial instruments. She has been detained since her arrest on June 13, 2012 and also awaits sentencing.
This matter was investigated by the Internal Revenue Service – Criminal Investigation and the U.S. Department of Housing and Urban Development – Office of Inspector General, with assistance from the Wethersfield Police Department.
The case is being prosecuted by Assistant United States Attorneys Lisa Perkins and Liam Brennan.
Today’s announcement is part of efforts underway by the President’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.
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U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Federal Jury Convicts Providence Man on Heroin TraffickingRead the Press Release
PROVIDENCE, R.I. –Cristian Jimenez, a/k/a Alacran, 32, of Providence, faces between ten years to life in federal prison at sentencing after a federal court jury on Monday convicted him of one count of conspiracy to possess and distribute heroin and three counts of possession and distribution of heroin, announced Unites States Attorney Peter F. Neronha, Richard DesLauriers, Special Agent in Charge of the FBI’s Boston Field Office; and John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division.
Jimenez was one of eleven individuals identified by law enforcement as being members of a Dominican organization that trafficked heroin into Rhode Island. The other 10 individuals charged and arrested in this matter previously pled guilty in U.S. District Court in Providence.
The jury acquitted Jimenez of one count of possession of a firearm in furtherance of drug trafficking crimes.An investigation by the Federal Bureau of Investigation Safe Streets Gang Task Force, and the Drug Enforcement Administration Drug Task Force, Rhode Island State Police and local law enforcement officers assigned to the task forces resulted in the execution of federal search warrants and arrest warrants in May 2012 in Providence, Cranston, North Providence, Pawtucket, and West Warwick, R.I. More than three kilos of heroin, approximately 200 grams of cocaine, approximately $450,000 in cash, a substantial quantity of high-end jewelry, five firearms - four of them loaded, and twelve vehicles - several of which contained “hides” were seized by law enforcement.
According to the government’s evidence presented at trial, on numerous occasions Jimenez bought and sold significant quantities of heroin and directed the packaging and distribution of the drugs. The government’s evidence showed that Jimenez’s Providence residence was one of the primary locations used by the drug trafficking organization to package and distribute significant quantities of heroin.
Jimenez, who has been detained since his arrest on September 26, 2012, is scheduled to be sentenced by U.S. District Court Judge William E. Smith on September 13, 2013.
The case was prosecuted by Assistant U.S. Attorney Adi Goldstein and First Assistant U.S. Attorney Kenneth P. Madden.
The FBI’s Safe Streets Gang Task Force consists of agents and law enforcement officers from the FBI; Providence, Cranston and Woonsocket Police Departments and the Rhode Island National Guard.The DEA Drug Task Force consists of agents and law enforcement officers from the DEA, Rhode Island State Police, and the Cranston, East Providence, Pawtucket, Providence, Warwick, Newport, and Woonsocket Police Departments.
Agents from the U.S. Department of State Diplomatic Security Service and Internal Revenue Service Criminal Investigation also played significant roles in the investigation.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Federal Inmate Indicted in Pennsylvania for Murder of Correctional OfficerRead the Press Release
A federal grand jury in Scranton, Penn., returned an indictment today charging Jessie Con-Ui, a federal inmate, with the murder of federal corrections officer Eric Williams, the Justice Department announced.
Con-Ui, 36, was charged in U.S. District Court for the Middle District of Pennsylvania with one count of first degree murder, one count of first degree murder of a U.S. corrections officer and one count of possessing contraband in prison.
The indictment alleges that Con-Ui killed Williams on Feb. 25, 2013, in a premeditated attack at the Canaan Federal Correction Complex in Waymart, Penn. According to the indictment, Con-Ui stabbed Williams with a sharpened weapon and struck him repeatedly.
If convicted, Con-Ui faces a maximum penalty of death or life in prison.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The charges against Con-Ui resulted from an investigation by the FBI, with assistance from the Federal Bureau of Prisons. The case is being prosecuted by the Justice Department’s Criminal Division and the U.S. Attorney’s Office for the Middle District of Pennsylvania.
Federal Inmate Indicted in Pennsylvania for Murder of Correctional OfficerRead the Press Release
A federal grand jury in Scranton returned an indictment today charging Jessie Con-Ui, a federal inmate, with the murder of federal corrections officer Eric Williams, the Justice Department announced.
Con-Ui, 36, was charged in U.S. District Court in the Middle District of Pennsylvania with one count of first degree murder, one count of first degree murder of a U.S. corrections officer and one count of possessing contraband in prison.
The indictment alleges that Con-Ui killed Williams on Feb. 25, 2013, in a premeditated attack at the Canaan Federal Correction Complex in Waymart, Pennsylvania. According to the indictment, Con-Ui stabbed Williams with a sharpened weapon and struck him repeatedly.If convicted, Con-Ui faces a maximum penalty of death or life in prison.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The charges against Con-Ui resulted from an investigation by the FBI, with assistance from the Federal Bureau of Prisons. The case is being prosecuted by the Justice Department’s Criminal Division and the U.S. Attorney’s Office for the Middle District of Pennsylvania.
****Federal Grand Jury Indicts Man for Illegal Reentry into the United StatesRead the Press Release
Francesco Gulino was arrested in April in Raleigh Co. on drug charges
CHARLESTON, W. Va. – An Italian national was indicted on June 25 by a federal grand jury sitting in Charleston on a federal charge, announced United States Attorney Booth Goodwin. Francesco Gulino, also known as “Frank Gulino,” 43, of Italy, was indicted for reentry of an illegal alien. Gulino was previously convicted in May 2009 in the Court of Common Pleas, Cuyahoga County, Ohio of attempted felonious assault. Gulino was later deported on or about April 20, 2011.
On April 20, 2013, Gulino was arrested by police in Raleigh County, W.Va., for possession with intent to deliver a controlled substance. Gulino had not obtained approval of the Secretary of Homeland Security to reapply for admission to the United States.
Gulino faces up to 20 years in prison if he is convicted.
The U.S. Immigration and Customs Enforcement conducted the investigation. Assistant United States Attorney Erik S. Goes is handling the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Note:The charge contained in the indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
Click here to view a copy of the indictment
Father and Son Indicted on Federal Charges in Bribery Scheme to Obtain Taxicab Business Licenses-Charges Follow Undercover Investigation-Read the Press Release
WASHINGTON – Anthony C. Y. Cheng, Sr., and his son, Anthony R. Cheng, Jr., were indicted by a federal grand jury today on charges stemming from a scheme to bribe public officials to illegally obtain licenses and generate business opportunities for multi-vehicle taxicab companies, announced U.S. Attorney Ronald C. Machen Jr. and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Cheng, 65, and his son, 39, were indicted by a grand jury in the U.S. District Court for the District of Columbia. Both were indicted on one count each of conspiracy to commit bribery and payment of a bribe to a public official. Anthony Cheng Jr. also was indicted on a second count of payment of a bribe to a public official. The conspiracy charge carries a statutory maximum of five years in prison and financial penalties. The bribery charge carries a statutory maximum of 10 years of incarceration as well as financial penalties.
According to the indictment, Anthony Cheng Sr. is the owner of businesses, including Tony Cheng’s Mongolian Restaurant, in the Chinatown area of Washington, D.C. Anthony Cheng Jr. owned a bus company that provided interstate transportation to the public.
The indictment alleges that the Chengs conspired from November 2010 through June 2011 to obtain licenses for multi-vehicle taxicab companies. At the time, a legislatively mandated moratorium was in place prohibiting the issuance of any new business licenses to operate new taxicab companies, taxicab associations and limousine businesses.
The Chengs allegedly sought to circumvent the moratorium by using falsified backdated corporate documents representing that their taxicab companies had been in existence since 2009. According to the indictment, they attempted to carry out their scheme by approaching, among others, a person described in the indictment as “Public Official Number One,” a public official who at the time chaired the District of Columbia Taxicab Commission. They also approached a person they believed was an official with the District of Columbia Department of Consumer and Regulatory Affairs, described in the indictment as “Public Official Number Two;” unbeknownst to them, the indictment states, this person actually was an undercover FBI Special Agent.
During meetings in early 2011, “Public Official Number One” told the Chengs about the moratorium, the indictment alleges. The Chengs, meanwhile, agreed to pay “Public Official Number One” 10 percent of profits from their business endeavors, the indictment states. They allegedly collected and forwarded to “Public Official Number One” applications to corruptly obtain licenses for multi-cab companies. Anthony Cheng Jr. provided “Public Official Number One” with backdated paperwork, and Anthony Cheng Sr. provided him with $1,500 in cash to obtain the licenses, the indictment alleges.
The indictment alleges that Cheng Jr. met in March 2011 with “Public Official Number Two” and provided him with $250 in cash in return for backdated certificates of occupancy for two multi-vehicle taxicab companies.
The Chengs obtained two licenses for multi-cab companies – named Green Top Cab and ECO CAB Company - but never opened the businesses.
“Today’s indictment charges Tony Cheng and his son with paying cash bribes to two different government officials,” said U.S. Attorney Machen. “We cannot tolerate the culture of pay-to-play in the District of Columbia. This prosecution demonstrates our commitment to holding accountable the businessmen who entice public officials to violate the public trust.”
“Bribery and kickbacks, such as those alleged in today’s indictments, have no place in our government,” said Assistant Director in Charge Parlave. “We will continue to diligently work to protect the integrity of our government by pursuing those who seek to violate the system through such corruption.”
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the charges, U.S. Attorney Machen and Assistant Director in Charge Parlave commended the efforts of those who worked on the case from the FBI’s Washington Field Office. They also commended the work of Assistant U.S. Attorneys Lionel André and Loyaan A. Egal, who are prosecuting the case.
13-226Essex County, N.J., Woman Who Scammed Credit Card Numbers to Buy Luxury Items Sentenced to Seven Years in Federal PrisonRead the Press Release
TRENTON, N.J. – An Essex County, N.J., woman who admitted using stolen credit card numbers to purchase $133,000 worth of high-end merchandise was sentenced today to 84 months in prison, U.S. Attorney Paul J. Fishman announced.
Melody Macken, 50, of Irvington, N.J., previously pleaded guilty before U.S. District Judge Joel A. Pisano to an indictment charging her with unlawfully using credit card numbers issued to others without their authorization. Judge Pisano imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From February 2010 through November 2011, Macken acquired stolen credit card account numbers by calling retailers and store customers and claiming to be a store employee. Using the stolen credit card numbers and other personal identification information, she purchased items such as mattresses, appliances, electronics, luxury apparel, accessories and shoes – with a total value of more than $133,000.
In calculating Macken’s sentence, the court took into account a previous conviction and Macken’s alleged activities since her guilty plea in this case. While out on bail, Macken allegedly violated the conditions of her federal pretrial release by committing a new crime, following the same scheme, just months after entering her guilty plea. As a result, her bail was revoked and she was remanded into the custody of the U.S. Marshals pending today’s sentencing. She remains in federal custody.
In addition to the prison term, Judge Pisano sentenced Macken to serve three years of supervised release and ordered her to pay $147,592 to victim retailers.U.S. Attorney Fishman credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the investigation.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
13-268
Defense counsel: David Oakley and Mark Anderl Esqs., Perth Amboy, N.J.East Windsor Gun Store Employee Pleads GuiltyRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that KRYSTOPHER DIBELLA, 25, of West Suffield, pleaded guilty yesterday before United States Magistrate Judge Holly B. Fitzsimmons in Bridgeport to one count of aiding and abetting the failure to make a proper entry on an ATF Form 4473, a form that must be completed by individuals who purchase firearms from federally-licensed firearms dealers.
According to court documents and statements made in court, from approximately 2008 to August 2012, DIBELLA was employed at Riverview Gun Sales, which used to be a federally-licensed firearms dealer in East Windsor. On several occasions during his employment at Riverview Gun Sales, DIBELLA transferred firearms to individuals who failed to respond to certain questions on the ATF Form 4473.
The charge against DIBELLA stems from a sale that occurred on March 15, 2010. On that date, DIBELLA failed to have a purchaser of a firearm, who was a non-immigrant alien, answer a question on the form regarding United States citizenship.Judge Fitzsimmons has scheduled sentencing for September 16, 2013, at which time DIBELLA faces a maximum penalty of one year of imprisonment, five years of probation and a $100,000 fine. The parties have agreed to recommend a sentence of three years of probation. As part of this agreement, DIBELLA will not apply for a Federal Firearms License (FFL) or to be a responsible party for an FFL for the entire probationary term.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant United States Attorney Robert M. Spector.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Dansville Man Sentenced for Enticing ChildRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that William F. Chappell, 43, of Dansville, N.Y., who was convicted of enticing a minor to engage in illegal sexual activity, was sentenced to 14 years in prison and 10 years of supervised release by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Marisa J. Miller, who handled the case, stated that between March 2009 and May 2009, Chappell enticed a child under the age of 18 to engage in sexual activity. The defendant utilized a cellular phone and, through a series of text messages and exchanges, persuaded the child to engage in sexual activity. At Chappell's request, the child took sexually explicit photographs and sent them to the defendant. Chappell knew that the child was not yet 18 years old when he communicated with and enticed the child.
The sentencing is the culmination of an investigation on the part of Special Agents of the Department of Homeland Security, under the direction of Special Agent in Charge James C. Spero, and Officers of the Dansville Police Department, under the direction of Chief Charles Perkins.
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.Clearwater Man Sentenced to 15 Years in Federal Prison for Possession of A FirearmRead the Press Release
Tampa, FL - United States District Court Judge Elizabeth A. Kovachevich today sentenced Martez Jamar Cook (28, Clearwater) to 15 years in prison for possession of a firearm by a convicted felon. Cook pleaded guilty on March 4, 2013.
According to the criminal indictment and testimony in court, on April 26, 2012, Cook sold a Chinese made Norinco SKS 7.62 rifle, along with numerous rounds of 7.62 ammunition, to an undercover police officer in Clearwater. Included in the sale were an extended capacity magazine and ammunition.
This case was investigated by agents of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives, with the assistance of the Largo Police Department. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney Robert E. O’Neill, along with Julie Torres, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Charleston Man Sentenced to Federal Prison for Illegal Firearm PossessionRead the Press Release
CHARLESTON, W.Va. – A Charleston man who illegally possessed a firearm was sentenced on June 25 to one year and three months in federal prison, announced U.S. Attorney Booth Goodwin. Clyde Anderson, Jr., also known as “Smokey,” 33, previously pleaded guilty in March to possession of a firearm by an unlawful user of a controlled substance. On January 4, 2013, members of the Charleston Police Department’s Special Enforcement Unit observed Anderson enter a vehicle outside of Shar’s Bar, located on Charleston’s West Side. A short time later, Anderson exited the vehicle. Police officers patrolling the area conducted a traffic stop on the vehicle. During a search of the vehicle, police found crack cocaine.
Following the search, police approached Anderson to question his involvement. Police ordered Anderson to get on the ground after he made an attempt to flee. As the defendant made his way to the ground, a firearm fell out of his waistband. Anderson was placed under arrest.
Anderson told police that he had been using crack cocaine on or about the time of his arrest.
The investigation was conducted by the Charleston Police Department’s Special Enforcement Unit. Assistant United States Attorney Haley Bunn handled the prosecution. The sentence was imposed by United States District Judge John T. Copenhaver, Jr.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Charleston Man Sentenced to 18 Years in Federal Prison for Selling Crack CocaineRead the Press Release
BLUEFIELD, W.Va. – A Charleston man was sentenced on June 25 to 18 years in federal prison for distribution of crack cocaine, announced U.S. Attorney Booth Goodwin. James T. Washington, 35, of Charleston, previously pleaded guilty in November 2012. The sentence was handed down by Senior United States District Judge David A. Faber in federal court in Bluefield. On July 31, 2012, Washington sold .69 grams of crack cocaine to a confidential informant working with the Metropolitan Drug Enforcement Network Team (MDENT) in exchange for $100. The illegal transaction took place in Charleston. Also, on August 7, 2012, Washington met an informant at a predetermined location in Charleston and sold the informant 1.01 grams of crack cocaine in exchange for $200.
On August 12, 2012, officers conducted a traffic stop of a vehicle that was occupied by Washington and an associate. During the traffic stop, a police dog gave a positive indication of the presence of drugs. Police searched the vehicle and found 241 grams of crack cocaine hidden inside of the center console. Washington had obtained the crack cocaine the previous day and admitted that he intended to sell it.
The investigation was conducted by MDENT. Assistant United States Attorney Monica D. Coleman handled the prosecution.
Bloomington Man Sentenced to Life in Federal Prison for Conspiring to Distribute Controlled SubstancesRead the Press Release
MINNEAPOLIS— Earlier today in federal court, Eric Michelle Hunter, age 41, of Bloomington, was sentenced to life in federal prison for conspiring to distribute heroin, cocaine, and other controlled substances. United States District Court Judge Ann D. Montgomery specifically ordered Hunter to serve concurrent life sentences for conspiracy to distribute controlled substances and possession with intent to distribute heroin and BZP and a consecutive life sentence for aiding and abetting the carrying and using of a machine gun during and in relation to a drug trafficking crime, as well as a consecutive five-year sentence for aiding and abetting the carrying and using of a handgun during and in relation to a drug trafficking crime.
He was also ordered to serve concurrent 240-month sentences for witness tampering, being a felon in possession of a firearm, and aiding and abetting the distribution of controlled substances. Because the federal criminal justice system does not use parole, Hunter will remain in federal prison for the rest of his life.
Following the sentencing, U.S. Attorney B. Todd Jones said, “The sentence imposed in this case reflects both the culpability of this defendant and our continuing effort to protect our community from the most violent armed drug dealers. We will remain steadfast in our focus on the ‘worst of the worst’ when it comes to drug and gun prosecutions.”
Hunter was indicted on December 10, 2012, and convicted on February 22, 2013, following a jury trial. The evidence presented at that trial proved that from September 14, 2011, through July 24, 2012, Hunter conspired with others to distribute controlled substances, primarily heroin. On five occasions, Hunter aided and abetted the distribution of controlled substances, including heroin and benzylpiperazine, commonly known as BZP. He also conspired to distribute numerous other controlled substances, including two designer drugs with the street names “Foxy” and “Ivory Wave.”
Moreover, on May 2, 2012, Hunter aided and abetted the using and carrying of a .357-caliber, semi-automatic pistol, and on May 22, 2012, he aided and abetted using and carrying an AA Arms, nine-millimeter machine gun. Because Hunter is a convicted felon, he is prohibited under federal law from possessing firearms at any time. He was convicted in Mississippi of grand larceny in 1990, possession of cocaine in 1994, felon in possession of a deadly weapon in 1994, and intimidation and assault on a law enforcement officer in 1995. In addition, he was convicted in federal court in the District of Minnesota in 1998 for possession with intent to distribute crack cocaine.
On March 26, 2013, co-defendant Rikki Lee Gilow, age 20, also of Bloomington, was sentenced to 60 months on one count of conspiracy. In her plea agreement, Gilow admitted conspiring with Hunter and Jerry Anthony Harvey, age 39, of Minneapolis, to distribute controlled substances. In addition, Gilow admitted assisting Hunter in unknowingly selling two firearms to a government agent in connection with two separate drug transactions.
On April 9, 2013, Harvey pleaded guilty to one count of aiding and abetting the distribution of heroin. No sentencing date has yet been scheduled for Harvey.
This case was the result of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dakota County Drug Task Force. It was prosecuted by Assistant U.S. Attorneys Thomas M. Hollenhorst and Julie E. Allyn.Bloomfield Hills Resident Sentenced to Three YearsOn Insurance Fraud and Investment Fraud ChargesRead the Press Release
A Bloomfield Hills resident was sentenced in federal district court late yesterday on charges of defrauding an insurance company and, in a separate case, investment fraud, United States Attorney Barbara L. McQuade announced.
McQuade was joined in the announcement by Special Agent in Charge Daryl McCray, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Special Agent in Charge Robert D. Foley, III, Federal Bureau of Investigation.
Patrick D. Winter, age 54, of Bloomfield Hills, Michigan, was sentenced by U.S. District Judge Arthur Tarnow to serve a sentence of 3 years imprisonment on charges of mail and wire fraud.
Evidence presented during the August 21, 2012 guilty plea, and at yesterday’s sentencing, established that Winter, as the manager of D.K.E., Inc., which owned a commercial office building at 21751 W. Nine Mile Road in Southfield, Michigan, caused a false, inflated and fraudulent claim to be submitted to the Secura Insurance Company, stemming from a fire that substantially damaged that building on October 4-5, 2004.
According to documents submitted to the Court by the defense, Winter intended to inflate the insurance claim by as much as $232,521. Secura did not pay the nearly $1 million claim, which is the subject of civil litigation in Oakland County.
In a separate case, Winter was sentenced for soliciting over $645,500 from a 60-year-old Nevada woman between July 2008 and August 2010, convincing her to liquidate her entire life savings, and give the proceeds to him. He falsely promised to invest the money in a real estate development which would pay high returns. Winter flew to Nevada, met with the victim, and earned her trust, in part, by showing her a picture of his large family (the defendant has nine children). He corresponded with her about personal bankruptcy and about letting her home go into foreclosure, all the while soliciting tens of thousands of dollars more from her. Winter used the money for personal expenses. The victim lost her house and was forced to live with her parents.
United States Attorney McQuade commended the investigations of the Southfield Fire Department, the Bureau of Alcohol, Tobacco and Firearms, and the Federal Bureau of Investigation for bringing this case to a successful conclusion.
.Barceloneta Contractor Israel Quintna-Luciano Pleads Guilty to BriberyRead the Press Release
SAN JUAN, P.R. – Today, Israel Quintana-Luciano, a former contractor with the Municipality of Barceloneta pled guilty to a one count Information charging federal program bribery before the Magistrate Judge Camille Vélez-Rive, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. At sentencing, set for November 13 at 9:30 am, the defendant faces a maximum term of imprisonment of ten (10) years, a supervised release term of not more than three (3) years and a $250,000 fine.
On or about January 19, 2012, Quintana met with the planning director of the Municipality of Barceloneta and during lunch provided him with a Christmas card with a small envelope inside which contained $5,000 in cash. The purpose of the payment was to expedite contract payments by the Municipality of Barceloneta and ensure continued work with the Municipality of Barceloneta for Cidra Excavation, which at the time had several contracts with the Municipality. During this time, included the year prior, the Municipality of Barceloneta received over $1,000,000 in federal funds.
“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. “Contractors who provide public officials with illegal payments contribute to undermining the public trust in local government and the services it provides to its constituents.”
This case is being prosecuted by Senior Litigation Counsel, Charles R. Walsh and was investigated by the FBI.
Austin Doctor Charged with Defrauding Medicare of $2 Million in Less Than Two MonthsRead the Press Release
HOUSTON - Dr. Dennis B. Barson Jr., 40, and his medical clinic administrator, Dario Juarez, 53, have been charged in a 20-count indictment alleging a conspiracy to defraud Medicare of $2.1 million in less than two months, United States Attorney Kenneth Magidson announced today.
The indictment, returned under seal on June 19, 2013, alleges the fraudulent billing was for rectal sensation tests and electromyogram (EMG) studies of the anal or urethral sphincter which were never performed. The indictment also charges Barson, of Austin, and Juarez, of Beeville, with health care fraud for filing false claims with Medicare for medical procedures which were never performed.
Barson was arrested this morning, at which time the indictment was unsealed. He is expected to make his initial appearance today before a U.S. magistrate judge in Austin. Juarez is already in custody serving time for practicing medicine without a license.
According to the allegations in the indictment, Barson was the only practicing doctor at a medical clinic located at 8470 Gulf Freeway in Houston. It was Juarez, however, who allegedly represented himself either to be a doctor or a physician’s assistant and was the one who actually saw patients, according to the indictment. It is alleged that Barson and Juarez caused Medicare to be billed for procedures on 429 patients in just two months. Barson and Juarez also allegedly billed Medicare for seeing more than 100 patients on 13 different days, including a high of 156 patients on July 13, 2009.
Each of the 19 health care fraud counts and the conspiracy charge carries a maximum penalty of 10 years in a federal prison and a $250,000 fine, upon conviction.
The criminal charges are the result of a joint investigation conducted by agents of the FBI, the Department of Health and Human Services-Office of Inspector General and the Medicaid Fraud Control Unit of the Texas Attorney General's Office. This case will be prosecuted by Assistant United States Attorney Al Balboni and Special Assistant United States Attorney Adrienne Frazior.
A defendant is presumed innocent unless and until convicted through due process of law.###
Arden Hills Man Pleads Guilty to Conspiring to Distribute 11 Pounds of MethamphetamineRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 35-year-old Arden Hills man pleaded guilty to distributing approximately 11 pounds of methamphetamine. Marcelino Garcia pleaded guilty to one count of conspiracy to distribute 500 or more grams of methamphetamine. Garcia, who was indicted on March 20, 2013, entered his plea before United States District Court Judge John R. Tunheim.
In his plea agreement, Garcia, also known as Moreno Marcelino Garcia and Marcelino Garcia-Moreno, admitted that on March 15, 2013, he made arrangements to sell approximately 11 pounds of methamphetamine to an undercover federal agent at a Target parking lot in Shoreview. Garcia also admitted that during the subsequent execution of a search warrant at his residence, authorities seized a nine-millimeter, semi-automatic pistol and five additional pounds of methamphetamine. According to a law enforcement affidavit filed in the case, authorities learned about Garcia during routine narcotics’ investigations in the Twin Cities.
For his crime, Garcia faces a potential maximum penalty of life in prison. Judge Tunheim will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Twin Cities Safe Streets Violent Gang Task Force, which is led by the Federal Bureau of Investigation and includes the Minneapolis Police Department. The task force’s mission is to investigate and target the most violent gangs operating in the Twin Cities or those gangs engaged in the large-scale trafficking of illegal drugs. The case is being prosecuted by Assistant United States Attorney Julie E. Allyn.
To learn more about the harmful effects of methamphetamine, visit http://www.justice.gov/dea/pr/multimedia-library/publications/drug_of_abuse.pdf#page=48.Allentown Man Charged with Making False Statements to HUDRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced the filing of a Criminal Information today against David Unterberg, age 52, of Allentown, Pennsylvania, alleging that he made false reports and statements to the Department of Housing and Urban Development (HUD).
According to United States Attorney Peter J. Smith, the Criminal Information alleges that between May and December 2010, Unterberg submitted invoices seeking and receiving reimbursement for expenses and wages related to two conferences that he falsely claimed to have attended which were paid for by HUD funds. At the time, Unterberg was the owner of a firm known as Community Programs Incorporated (CP), which provided services to the Borough of Tamaqua, Schuylkill County, in connection with a federal Community Development Block Grant (CDBG).
The case was investigated by the U.S. Department of Housing & Urban Development, Office of Inspector General, and the Pennsylvania Department of the Auditor General. Prosecution is assigned to Assistant United States Attorney John Gurganus.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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 one-year of 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.
24 June 2013
Woman Pleads Guilty to Defrauding Lowe’s Stores by Fraudulently Obtaining Gift Card CreditRead the Press Release
Baltimore, Maryland - Lucerte “Lisa” Abellard, age 35, of Dobbs Ferry, New York, pleaded guilty today to conspiracy to commit wire fraud in connection with a scheme to defraud Lowe’s stores.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Acting Special Agent in Charge Lisa Quinn of the United States Secret Service – Baltimore Field Office.
According to her plea agreement, Abellard called employees at Lowe’s stores around the United States, pretending to be from the “IT department” at Lowe’s headquarters, telling the Lowe’s employee that she received a report there were problems with a register at the Lowe’s store. She would then ask the employee to run a series of diagnostics on the register, often pretending to be able to see the tests remotely. The purported diagnostics ended with a “test” transaction that put a credit on a Lowe’s gift card – usually about $3,000 to $4,000. In reality, this “test” transaction put a credit onto a Lowe’s card possessed by Abellard or her co-conspirators. Abellard was usually successful in deceiving employees into believing she was calling from Lowe’s IT department because she was very familiar with Lowe’s internal procedures and systems – including the names of systems and databases routinely accessed by Lowe’s employees.
Abellard received a portion of value on the gift card she fraudulently credited from the co-conspirators to whom she sold the cards. After obtaining the fraudulent credit, Abellard would contact the co-conspirator that had paid her for the card, advise that person of the credit and that the card needed to be used quickly before Lowe’s detected the fraud. Phone records connect Abellard and her co-conspirators to the fraudulently obtained gift cards, and confirm that Abellard made most or all of the fraud calls to Lowe’s stores.
The total loss to Lowe’s as a result of the scheme was more than $250,000. The government contends that Abellard was the leader of the scheme and will offer evidence to prove that at sentencing
Abellard faces a maximum sentence of 20 years in prison and a fine of $250,000. U.S. District Judge Ellen L. Hollander scheduled his sentencing for September 26, 2013, at 10:00 a.m.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service for its work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Justin S. Herring, who is prosecuting the case.
Winner Man Sentenced for Prohibited Person in Possession of A FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that a Winner, South Dakota man convicted of Prohibited Person in Possession of a Firearm was sentenced on June 24, 2013 by U.S. District Judge Roberto A. Lange.
Joshua Felix, age 39, was sentenced to 4 months in custody, 4 months of home confinement, and $100 to the Federal Crime Victims Fund.
Felix was indicted by a federal grand jury on January 16, 2013 and pled guilty to the charge on April 2, 2013.
Felix was convicted of domestic violence simple assault on June 15, 2004 in Tripp County. Due to that previous domestic violence conviction, Felix was prohibited from possessing firearms by operation of federal law. On March 15, 2012, Tripp County law enforcement was investigating a disturbance and found Felix to be in possession of a rifle.
The investigation was conducted by the Tripp County Sheriff’s Office and the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Tim Maher.
Felix was remanded to the custody of the U.S. Marshals Service.
U.S. Restrains 1909 Pablo Picasso Painting Valued at $11.5 MillionRead the Press Release
The Department of Justice today restrained the 1909 Pablo Picasso painting “Compotier et tasse” – estimated to be worth $11.5 million – on behalf of the Italian government, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Preet Bharara of the Southern District of New York; and U.S. Immigration and Customs Enforcement (ICE) Director John Morton.
The restraining order was obtained in response to an official request by the government of Italy, pursuant to the treaty between the United States of America and the Italian Republic on Mutual Legal Assistance in Criminal Matters for assistance in connection with its ongoing criminal investigation and prosecution of Gabriella Amati. Amati and her late husband, Angelo Maj, were charged by the Italian Public Prosecutors’ Office in Milan with embezzlement and fraudulent bankruptcy offenses under Italian law, and Italian prosecutors have obtained a restraining order for the Picasso painting in connection with the criminal proceeding.
According to documents filed in the Italian criminal proceeding, Amati and Maj, in collaboration with a public official of the city of Naples, Italy, employed various schemes to misappropriate tax receipts collected for Naples by companies the couple controlled. In addition, the Italian prosecutors alleged that Amati and Maj orchestrated a number of schemes to embezzle Naples’ tax revenue, including the use of fraudulent service contracts, forged accounting records, inflated operational expenses and fraudulently claimed refunds to Naples taxpayers, all to justify transfers to the couple’s own bank accounts of the taxes that were collected for the city, resulting in a loss of approximately 33 million Euros ($44 million) to Naples.
On May 21, 2013, ICE Homeland Security Investigations (HSI) special agents in New York located and recovered the painting, which was being offered for private sale in the amount of $11.5 million.
An application to enforce the Italian restraining order was filed on June 21, 2013, in the U.S. District Court for the Southern District of New York, seeking to restrain the Picasso painting belonging to Amati and Maj and located in New York City. U.S. District Judge Victor Marrero granted the U.S. government’s application and issued a restraining order prohibiting the removal, sale or disposition of the Picasso painting from the court’s jurisdiction. The United States is working in close cooperation with the Italian Public Prosecutors’ Office in Milan and the Justice Department’s Attaché in Rome to forfeit the painting in an effort to repatriate the Picasso to Italy.
“Restraining this Picasso painting is yet another example of the Justice Department’s close partnership with law enforcement around the world,” said Acting Assistant Attorney General Raman. “Our asset forfeiture section is committed to finding and securing every last penny of criminal proceeds and putting those ill-gotten proceeds back in the hands of victims, regardless of where they reside.”“We are pleased to have played a role in securing this valuable work of art by the celebrated artist, Pablo Picasso, on behalf of the Italian government,” said U.S. Attorney Bharara. “Our commitment to ‘taking the profit out of crime’ transcends national boundaries and is the operating principle of our asset forfeiture program.”
“Restraining this valuable artwork is an effort to help recover some of the estimated $44 million that this couple stole from the tax-paying citizens of Naples,” said Director Morton. “We are very pleased that our investigation has led to the recovery of this painting that is so significant to the Italian people. This is an example of the fine work of our HSI cultural repatriation special agents. We will continue our efforts to return stolen antiquities to their rightful owners.”
The U.S. enforcement of the Italian order is being handled by Assistant Deputy Chief Jack de Kluiver and Trial Attorney Jennifer Wallis of Criminal Division’s Asset Forfeiture and Money Laundering Section and Asset Forfeiture Unit Chief Sharon Cohen Levin and Assistant U.S. Attorney Christine Magdo of the U.S. Attorney’s Office for the Southern District of New York, ICE HSI New York and Rome, and the Criminal Division’s Office of International Affairs. In Italy, the case is being handled by the Italian Public Prosecutor’s Office in Milan, and investigated by the Guardia di Finanza police service.
U.S. Attorney Sarah R. Saldana Welcomes Congressional Delegation from the Republic of MexicoRead the Press Release
DALLAS — U.S. Attorney Sarah R. Saldaña of the Northern District of Texas welcomed several members of the Republic of Mexico’s Congressional Delegation this morning as they began a two-day visit to North Texas. This morning, before the opening session, U.S. Attorney Saldaña, Senator Arely Gómez Gonzàlez, Congresswoman Karina Labastida Sotelo and Congressman Jorge Sotomayer Chàvez spoke to several representatives from the media.
U.S. Attorney Saldaña said, “We are greatly privileged to welcome the Mexican Congressional Delegation to North Texas. We’re honored that as they transition to an accusatorial system of justice, similar to ours, they are interested in learning more about our system. We certainly look forward to a productive dialogue and exchange of ideas with our important neighbors and friends.”
In June 2008, Mexico amended its constitution to require that by June 2016, federal and state governments implement oral trials with full rights of confrontation. The judiciary committees from both the Mexican Senate and House of Representatives requested assistance from the U.S. in discussing procedures, outlined in proposed bills, which will be applicable to the states as well as the Mexican federal government.
Following introductions this morning, the Congressional Delegation participated in a round-table panel discussion on the American Accusatory System. Panelists from the Northern District of Texas included U.S. District Judges, U.S. Magistrate Judges, the Chief of U.S. Probation and Parole and the U.S. Federal Public Defender. Later, the delegation met with various executives from federal, state and local law enforcement where topics such as agency cooperation, task forces and evidentiary chain of custody were discussed. Representatives from Senator John Cornyn’s office and Senator Ted Cruz’s office also participated.
Following this morning’s sessions, the Congressional Delegation attended presentations on the responsibilities of the U.S. Attorney’s Office, including prosecuting organized crime and money laundering cases. The delegation visited a U.S. Magistrate Court for various hearings and then travelled to Dallas Police Department Headquarters where they met with senior staff and toured the facility.
On the second day of their visit to North Texas, the Delegation will observe state court proceedings and meet with the Dallas County District Attorney and state prosecutors. When they return to the federal courthouse, they will meet with the U.S. Federal Public Defender and staff, the Chief of U.S. Probation and Pretrial Services and U.S. District and Magistrate Judges. Their visit will conclude late tomorrow with another meeting with U.S. Attorney Saldaña.
Two Jackson County Men Charged with Methamphetamine ConspiracyRead the Press Release
Two Elkville, Illinois, residents were indicted on June 20, 2013, in an indictment, charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
On June 24, 2013, Charles L. Scott, a/k/a “Boomer,” 42, was arraigned in United States District Court in Benton on the indictment. The indictment alleges that the offense occurred between March 2012 and March 2013 in Jackson and Perry Counties. Scott is currently being held without bond pending a June 27, 2013, detention hearing. Co-defendant Charles E. Witherspoon, a/k/a “Spoon,” 61, is scheduled to make his initial appearance in federal court on June 25, 2013. The case is set for jury trial on August 26, 2013.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, Scott and Witherspoon each face a term in prison of up to 20 years, a $1,000,000 fine, and 3 years of supervised release.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Murphysboro Police Department, Pinckneyville Police Department, DuQuoin Police Department, and Illinois State Police Methamphetamine Response Team.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Twenty-Fourth Defendant Pleads Guilty in Mahattan Federal Court in Connection with LIRR Disability Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that STEVEN GAGLIANO, a former Long Island Railroad signalman, pled guilty today to charges related to the allegedly massive fraud scheme in which Long Island Rail Road (“LIRR”) workers claimed to be disabled upon early retirement so that they could receive disability benefits to which they were not entitled. GAGLIANO pled guilty in Manhattan federal court before U.S. Magistrate Judge Andrew J. Peck. He is the 24th defendant to plead guilty in the case, which alleges a pervasive pattern of fraudulent disability claims being filed with the U.S. Railroad Retirement Board (“RRB”) by retiring LIRR employees.
According to the Complaint, the Superseding Indictments, the Superseding Informations, and statements made in other public filings and court proceedings:
The RRB is an independent U.S. agency that administers benefit programs, including disability benefits, for the nation’s railroad workers and their families. A unique LIRR contract allowed employees to retire at the relatively young age of 50 – the age of eligibility has since changed to 55 – if they had been employed by the LIRR for at least 20 years. Eligible employees are entitled to receive an LIRR pension, which is a portion of the full retirement payment for which they are eligible at 65. In addition, at full retirement age (between age 60 and age 65 depending on years of service), they are eligible to receive an RRB retirement pension. For LIRR workers who retired at 50 with only an LIRR pension, they would receive less than their prior salary and substantially lower pension payments than those to which they would be entitled at full retirement age. However, LIRR employees who retired and claimed disability could receive a disability payment from the RRB on top of their LIRR pension, regardless of age. A retiree’s LIRR pension, in combination with RRB disability payments, can be roughly equivalent to the base salary earned during his or her career.
Hundreds of LIRR employees have allegedly exploited the overlap between the LIRR pension and the RRB disability program by pre-planning the date on which they would falsely declare themselves disabled so that it would coincide with their projected retirement date. These false statements, made under penalty of prosecution in disability applications, allowed LIRR employees to retire as early as age 50 with an LIRR pension, supplemented by the fraudulently obtained RRB disability annuity. From 1995 through 2011, more than 75% of LIRR employees stopped working and began receiving RRB disability benefits, whereas during this same period, only 25% of retiring Metro-North employees stopped working and began receiving RRB disability benefits. During the period 2004 through 2008, only three doctors were responsible for approximately 86% of the disability claims submitted by LIRR retirees. Of these, one has died and one, Dr. Peter J. Ajemian, has pled guilty and admitted that he declared “large numbers of Long Island Railroad employees” to be disabled even though they were not disabled and could have continued working in their railroad jobs. Dr. Ajemian was sentenced in May 2013 to eight years in prison.
GAGLIANO, 55, of North Babylon, New York, pled guilty to one count of conspiracy to commit mail fraud, wire fraud, and health care fraud; one count of conspiracy to defraud the United States and the RRB; one count of health care fraud; and one count of wire fraud. He faces a maximum sentence of 55 years in prison, and has agreed to make restitution to the RRB in the amount of $242,466.73.
Thirty-two people have been charged in connection with the LIRR disability fraud scheme, 24 of whom have now pled guilty. Of the 24 defendants that have pled guilty, two have been sentenced. The charges against the remaining defendants are merely allegations and they are all presumed innocent unless and until proven guilty.
Mr. Bharara praised the work of the RRB Office of the Inspector General, the Federal Bureau Investigation, and the Office of the Inspector General of the Metropolitan Transportation Authority for their outstanding work in the investigation, which he noted is ongoing. He also acknowledged the previous investigation conducted by the New York State Attorney General’s Office into these pension fraud issues.
The case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Justin Weddle, Nicole Friedlander, and Daniel Tehrani are in charge of the prosecution.
US v. Lesniewski, et al S14 Indictment
Tenth and Eleventh Gang Members Plead Guilty in Dodge City Racketeering CaseRead the Press Release
WICHITA, KAN. – Two members of a Dodge City street gang have entered guilty pleas, becoming the tenth and eleventh defendants to plead guilty in a federal racketeering case, U.S. Attorney Barry Grissom said today.
Joshua Flores, 25, Dodge City, Kan., pleaded guilty to one count of brandishing a firearm in a crime of violence. Hernan Quezada, 20, Dodge City, Kan., pleaded guilty to one count of assault with a dangerous weapon, which was a violent crime in aid of racketeering.
In his plea, Joshua Flores admitted that he was a member of the Los Carnales Chingones street gang affiliated with the Norteno street gang on June 8, 2009, when he and other gang members who were armed with firearms robbed a victim named Isidro Raleas-Velasquez and other persons.
The victims were at their home at 1005 Avenue E in Dodge City when Flores and three other men affiliated with the Nortenos broke into their residence armed with firearms. One of the Nortenos grabbed a victim, struck him in the head with a firearm and took him into another room. Flores joined the other Nortenos in going through the house looking for other residents to rob. The other Norteno beat the victim he took into the other room. During the robbery, Raelas-Velasquez was struck with a firearm in the head, causing a large laceration. After the robbery, Flores and the other Norteno gang members divided up the proceeds of the robbery.
In his plea, Hernan Quezada admitted he was a member of the Diablos Viejos (DV) street gang affiliated with the Norteno street gang when on Feb. 5, 2012, he assaulted a victim named Reyes Bocanegra. Quezada was at 1200 Avenue I in Dodge City when he got into a fight with Bocanegra’s brother, Oscar. The fight was soon joined by Reyes Bocanegra, aiding his brother, and two other DV gang members, aiding Quezada. Quezada struck Reyes Bocanegra in the head with a bottle, causing a laceration to the top of his head.
Flores and Quezada admitted that robberies, assaults and other crimes were part of the way Norteno gang members built their reputations and kept their rivals at bay.
Flores is set for sentencing Sept. 9. He faces a penalty of not less than seven years in federal prison and a fine up to $250,000. Quezada is set for sentencing Sept. 13 He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000.
Grissom commended the Dodge City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ford County Sheriff’s Office, the Kansas Bureau of Investigation, Assistant Aaron Smith and Assistant U.S. Attorney Lanny Welch for their work on the case.
Statement of Attorney General Eric Holder on the Supreme Court Decision in Fisher v. University of TexasRead the Press Release
Attorney General Eric Holder today issued the following statement regarding the Supreme Court’s decision in Fisher v. University of Texas.
“I am pleased that the Supreme Court has followed longstanding precedent that recognizes the compelling governmental interest in ensuring diversity in higher education. The educational benefits of diversity are critically important to the future of this nation. As the Court has repeatedly recognized, diverse student enrollment promotes understanding, helps to break down racial stereotypes, enables students to better understand people of different races, and prepares all students to succeed in, and eventually lead, an increasingly diverse workforce and society. Business leaders have long emphasized the importance of a qualified, diverse workforce to their success in a global economy. And the federal government, in particular, has a vital interest in drawing its personnel, including its military leaders, from a well-qualified and diverse pool of university graduates of all backgrounds who have the perspective and understanding necessary to govern and defend this great country.
“The University of Texas’s implementation of its admissions program will now be reevaluated by the lower courts. The Department is committed to working with colleges and universities around the country to find ways to promote educational diversity that are consistent with the law.”
St. Lucie County Man Indicted for Internet Transportation and Receipt of Child PornographyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kenneth Mascara, Sheriff, St. Lucie County Sheriff’s Office (SLCSO), announce the indictment of defendant Joshua Adams Bagala, of Port Saint Lucie, on child pornography charges. Bagala was arraigned on June 20, 2013, before U.S. Magistrate Judge Frank J. Lynch, Jr., in Ft. Pierce and is detained pending trial.
The two-count indictment charges Bagala with transportation of child pornography via the internet, in violation of Title 18, United States Code, Section 2252(a)(1), and receipt of child pornography via the internet, in violation of Title 18, United States Code, Section 2252(a)(2). If convicted, Bagala faces a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison on each count. Bagala will also be required to register as a sex offender in any jurisdiction in which he lives, works, or attends school.
On April 16, 2013, a Nebraska State Patrol sergeant was conducting an online undercover investigation in a chat room. The officer, who was posing as a 14 year old girl, was contacted by a user with the screen name of “death_by_eskimo.” The user asked the undercover whether the undercover liked underage sex films and suggested that they use an instant messaging service to communicate. Thereafter, the user of the “death_by_eskimo” screen name sent two child pornography videos to the undercover officer. Upon further investigation, the IP address for “death_by_eskimo” was traced to Bagala’s residence in Florida.
On April 26, 2013, members of the South Florida ICAC Task Force executed a state search warrant at Bagala’s residence in Port St. Lucie. A forensic examination of the Bagala’s computer revealed several thousand videos and photographs of child pornography.
Mr. Ferrer commended the investigative efforts of the St. Lucie County Sheriff’s Office and the South Florida Internet Crimes against Children (ICAC) Task Force for their work on this case. The case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.