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Thursday 9 May 2013
Former Norfolk City Employee Convicted of FraudRead the Press Release
NORFOLK, Va. – Patrick R. Lambert, 56, of Virginia Beach, Va., pleaded guilty today to fraud in connection with a local government receiving federal funds.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia and Royce E. Curtin, Special Agent in Charge, Federal Bureau of Investigation Norfolk Office, made the announcement after the plea was accepted by Chief United States District Judge Rebecca B. Smith.
Lambert faces a maximum penalty of 10 years imprisonment when he is sentenced on August 16, 2013.
In a statement of facts filed with the plea agreement, Patrick R. Lambert was a facilities maintenance supervisor with the City of Norfolk and was acquainted with Andrew T. Zoby, Jr., who had a plumbing contract with the City of Norfolk. Lambert owned a home and several rental properties in the Cities of Norfolk and Virginia Beach and at various times from approximately 2006 through 2011, would request that Zoby’s plumbing business perform certain work on the properties. Zoby’s employees performed the requested work which had a total value of $17,547.57. Lambert did not pay Zoby or his company for the work that was performed on these properties. In order to obtain reimbursement for these services, Zoby with the knowledge of Lambert, would submit fraudulent invoices for alleged plumbing services to the City of Norfolk. Lambert was aware of and acquiesced in the payment of these fraudulent invoices. As a result of this scheme, Lambert received free plumbing services in the approximate amount of $17,547.57 and Zoby was reimbursed this amount from the City of Norfolk funds. Zoby has previously pled guilty and will be sentenced on July 10, 2013, in United States District Court in Norfolk Va.
This case was investigated by Federal Bureau of Investigation, Norfolk Office. Assistant United States Attorney Robert J. Seidel, Jr. is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former Middle School Employee Sentenced in Texas to 30 Years in Prison for Producing and Distributing Child PornographyRead the Press Release
A Texas man was sentenced today to serve 30 years in prison for producing and distributing material relating to the sexual exploitation of children, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Western District of Texas Robert Pitman.
Robert Ramos Jr., 33, of Austin, Texas, was sentenced by U.S. District Judge Lee Yeakel in the Western District of Texas. In addition to his prison term, Judge Yeakel sentenced Ramos to serve 10 years of supervised release.
Ramos pleaded guilty on Oct. 31, 2012, to one count of production of child pornography and one count of distribution of child pornography.According to court documents and proceedings, Ramos, who was previously an assistant band director at Dessau Middle School in Pflugerville, Texas, admitted that he obtained sexually explicit images of a 13-year-old girl through communicating with her on Facebook using Facebook accounts that falsely portrayed him as a teenaged girl. Ramos admitted to distributing those images to Timothy Bek, a teacher in New York who was also contacting minor boys and girls for the purpose of obtaining sexually explicit images.
Ramos admitted at his plea hearing that he viewed via Internet webcam and saved to his computer a video of a five-year-old girl being sexually abused by Jennifer Mahoney, of New Jersey.
Both Bek and Mahoney have been prosecuted in their respective jurisdictions for their criminal activities relating to child pornography. Bek was sentenced in the Western District of New York on May 23, 2012, to serve 30 years in prison for production and possession of child pornography. Mahoney was sentenced in the District of New Jersey on Dec. 18, 2012, to serve 30 years in prison in for production of child pornography.
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 U.S. 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.
This case was investigated by the FBI and CEOS. CEOS Trial Attorney Keith Becker and Assistant U.S. Attorney Matthew Devlin of the Western District of Texas are prosecuting this case.
Former Jackson Police Officer IndictedRead the Press Release
Jackson, Miss - Tony Davis, 48, who previously served as a Jackson Police Officer, was arraigned today in federal court before U.S. Magistrate Judge F. Keith Ball pursuant to a federal indictment charging him with bribery in connection with a series of transactions of the City of Jackson, Mississippi Police Department, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen.
Davis is scheduled for trial on June 10, 2013 before U.S. District Judge Carlton W. Reeves. If convicted, he faces a maximum penalty of 10 years in prison and a $250,000.00 fine. This case was investigated by the Federal Bureau of Investigation.
The public is reminded that an indictment is an allegation that a defendant has committed a crime. All defendants are presumed innocent until and unless proven guiltyIf you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Federal Jury in Austin Convicts Fourt in Multi-Million Dollar Money Laundering Conspiracy Involving Los Zetas Drug Trafficking Proceeds, Extortion, and BriberyRead the Press Release
Cash from the sale of drugs was laundered to purchase, train, breed and race American quarter horses in U.S.
In Austin, four men face up to 20 years in federal prison after a jury convicted them of their roles in a complex conspiracy to launder millions of dollars in illicit Los Zetas drug trafficking proceeds to purchase, train, breed, and race American quarter horses in the United States announced United States Attorney Robert Pitman, FBI Special Agent in Charge Armando Fernandez, Richard Weber, Chief, Internal Revenue Service Criminal Investigation and DEA Special Agent in Charge Javier Pena.
Jurors convicted 46–year-old Balch Springs, TX, resident Jose Trevino Morales, the brother of purported Los Zetas leaders, Miguel Trevino Morales (aka “40”) and Oscar Omar Trevino Morales (aka “42”), as well as 52-year-old Mexican businessman Francisco Colorado Cessa, 30-year-old horse trainer and purchasing agent Fernando Solis Garcia, 49-year-old horse trainer Eusevio Maldonado Huitron of one count of conspiracy to commit money laundering. Jurors acquitted horse trainer and home builder Jesus Maldonado Huitron of Austin of the money laundering conspiracy charge. No sentencing date has been scheduled for the four convicted this afternoon.
“This trial documented the violence, brutality and corruption generated by Mexican drug cartels, in this case the particularly ruthless Los Zetas. The government was able to show how the corrupting influence of drug cartels has extended into the United States with cartel bosses using an otherwise legitimate domestic industry to launder proceeds from drug trafficking and other crimes,” stated United States Attorney Robert Pitman.
U.S. Attorney Pitman added, “The Department of Justice, the Treasury Department and all our federal, state and local law enforcement partners are committed to drawing a line in the sand to prevent the Mexican cartels from importing their brand of violent crime, corruption and ruthlessness into the United States. When we find evidence of cartel activity, whether in the form of drug trafficking, firearms smuggling or money laundering, we will work tirelessly to root out the perpetrators, deprive them of their profits, and seek the punishment appropriate to their crimes.”
Evidence presented during the 12-day trial revealed that Los Zetas are a powerful drug cartel based in Mexico and generate multi-million dollar revenues from drug trafficking. Since 2008, Miguel and Oscar Trevino Morales would direct portions of the bulk cash generated from the sale of illegal narcotics to Jose Trevino and his wife, Zulema Trevino, for purchasing, training, breeding and racing American quarter horses in the United States. Testimony also revealed a shell game by the defendants involving straw purchasers and transactions worth millions of dollars in New Mexico, Oklahoma, California and Texas to disguise the source drug money and make the proceeds from the sale of quarter horses or their race winnings appear legitimate. Furthermore, the defendants implemented a scheme to structure cash deposits in amounts under $10,000 in order to circumvent mandatory bank reporting requirements.
“Today’s verdict affirms the hard work and dedication of The FBI and our law enforcement partners in combating drug cartels and their attempts to influence and control legitimate enterprises. The FBI will continue to combat the efforts of organized criminal enterprises, including the Zetas, who would seek to endanger our communities,” stated FBI SAC Armando Fernandez.
Over 400 quarter horses seized by federal authorities in June as part of the above mentioned money laundering operation have been sold for approximately $9 million. Most of the horses were sold at Heritage Place Auction Facility in Oklahoma City, OK, in the past year including A Dash of Sweet Heat, which sold for $1 million. Approximately 100 broodmares were sold prior to auction for $35,000. The federal government still retains possession of nine quarter horses, including Tempting Dash, winner of the Dash for Cash at Lone Star Park race track in Grand Prairie, Texas, on October 24, 2009; Mr. Piloto, $1 million All American Futurity winner at Ruidoso Downs on Labor Day, 2010; Dashin Follies; Separate Fire; and Y516, a yearling seized on Zule Farms in Lexington, OK. Four of the nine quarter horses, none of which are named above, are scheduled for sale at auction at Heritage Place Auction Facility in Oklahoma on May 11, 2013.
U.S. Attorney Pitman noted that the proceeds from the sale of these quarter horses are held in escrow pending the resolution of a forfeiture action. Furthermore, the Government seeks the forfeiture of farm and ranch equipment; horse racing equipment; real property in Lexington, OK, and in Bastrop County, TX; and, funds contained in three bank accounts allegedly used in the defendants’ scheme. The Government also seeks a monetary judgment in the amount of $60 million representing the amount of money derived from the conspiracy.
“This verdict is an important victory for the American public,” said Richard Weber, Chief, IRS Criminal Investigation. “The Los Zetas used U.S. businesses to legitimize their illegal drug proceeds. Today, the Los Zetas cartel was brought to justice for their drug trafficking and money laundering operations. By following the money trail, IRS CI special agents were able to financially disrupt and dismantle this major drug trafficking organization. The fall of the Los Zetas cartel is an example of the great work our agents do on a daily basis.”
Authorities continue to seek the apprehension of seven co-defendants in this case including purported leaders of the Los Zetas, 35-year-old Miguel Trevino Morales (aka “40”) and his brother, 39-year-old Oscar Trevino Morales (aka “42”), as well as 32–year-old Victor Manuel Lopez, Sergio Guerrero Rincon, 41-year-old Luis Gerardo Aguirre, Erick Jovan Lozano Diaz and Gerardo Garza Quintero. Co-defendants Zulema Trevino, the wife of Jose Trevino Morales, Alexandra Garcia Trevino, the daughter of Jose Trevino Morales, 21-year-old Raul Ramirez, 23-year-old Adan Farias, and 29–year-old Felipe Alejandro Quintero, entered pleas of guilty to related charges prior to jury selection and are awaiting sentencing.
This investigation was conducted by agents with the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation and the Drug Enforcement Administration with assistance from the United States Marshals Service, Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI) and U.S. Customs and Border Patrol, as well as local law enforcement agents in Irving, Texas, Lorena, Texas, Bruceville Eddy, Texas, Fort Worth, Texas and Laredo, Texas. The investigation received assistance from the Texas Army National Guard, Cleveland County, Oklahoma Sheriff’s Office, and the Oklahoma and New Mexico Racing Commissions. The U.S. Attorney’s Office for the Eastern District of Texas prosecuted several members of the Los Zetas drug cartel on drug trafficking charges related to this conspiracy and provided substantial assistance to this investigation. The U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) provided assistance with the forfeiture action in this case.
Federal Jury Finds Hogback, N.M., Man Guilty of Federal Rape ChargeRead the Press Release
ALBUQUERQUE – A federal jury sitting in Albuquerque, N.M., returned a guilty verdict against Myron Jim Harry, 26, on an indictment charging him with rape after a four-day trial. The guilty verdict was announced by U.S. Attorney Kenneth J. Gonzales and John Billison, Director of the Navajo Nation Division of Public Safety.
Harry, an enrolled member of the Navajo Nation who resides in Hogback, N.M., was arrested in May 2010, based on a criminal complaint alleging that he sexually abused a Navajo woman in Shiprock, N.M., which is located on the Navajo Indian Reservation, on May 6, 2010. According to the complaint, Harry committed the offense while the victim could not communicate her unwillingness to participate in the sexual act. Harry subsequently was indicted on that same charge.
The evidence at trial established that, on the night of May 5, 2010, Harry, and several others drank alcoholic beverages during the victim’s birthday party in a Shiprock apartment. The victim fell asleep next to another woman in a bedroom in the apartment. Early the next morning, Harry made his way through the bedroom’s locked door to get to the victim and she awoke to find Harry raping her. The other woman, who was awoken by the bed moving and the moaning of a male voice, observed that Harry was having sexual intercourse with the victim while the victim was asleep. The woman yelled at Harry, told him to get off of the victim, and threw him out of the apartment. Other witnesses in the apartment testified that the victim was in a state of shock and crying after being violated by Harry.
After sexually assaulting the victim, Harry fled the apartment but returned shortly thereafter because he had forgotten his keys. While retrieving his keys, Harry was confronted by several angry women who accused him of raping the victim. Another witness testified about receiving “text” messages from Harry in which, while not clear, Harry implied that he had done something wrong.
The victim subsequently was examined at a medical facility where a sexual assault evidence kit was used to preserve evidence. The examination revealed that the victim sustained physical injuries to her vaginal area. DNA analysis also revealed that Harry’s semen was found on the victim.
Harry testified in his own defense and claimed that the victim consented to having sex with him. A defense expert witness testified that there was no physical evidence to prove that this was a non-consensual intercourse.The jury deliberated approximately five hours before returning a guilty verdict against Harry.
Harry was remanded into federal custody when the jury returned its verdict and will remain detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Harry faces a maximum penalty of life in prison. Harry also will be required to register as a sex offender when he completes his prison sentence.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Kyle T. Nayback and Special Assistant U.S. Attorney David M. Adams. It was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project which is sponsored by the Justice Department’s Office on Violence Against Women, and seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Elkin Photographer Enters PleaRead the Press Release
Defendant Guilty of Child Pornography, Obscenity ChargesGREENSBORO, N.C. – An Elkin man pled guilty today to possession of child pornography and production of obscenity, announced Ripley Rand, United States Attorney for the Middle District of North Carolina.
Eric Blaine Lusk, 42, of Elkin, North Carolina, pleaded guilty to one count of possession of child pornography and one count of production and distribution of obscenity. Lusk entered his plea in Winston-Salem, North Carolina, before United States District Judge Thomas D. Schroeder.
While acting as a professional photographer for youth sporting events, Lusk took close-up photographs of the pubic area of members of a girls’ swim team while the girls were wearing swimsuits. Lusk then anonymously distributed those photographs through file-sharing networks, labeling the photographs with names associated with child pornography. By labeling the swim team photographs in that way, the photographs came up as search results for persons seeking child pornography on file-sharing networks. However, none of the members of the swim team was photographed nude or in sexual activity. Lusk’s activity with the girls’ swim team photographs is the basis of the obscenity charge. When the distribution of the swim team photographs was traced back to Lusk, a search of his computers showed he possessed child pornography independent of any photographs he had taken. Lusk was released pending his sentencing on August 29, 2013, at 9:30 a.m. in Winston-Salem.
Lusk faces a maximum sentence of up to ten years imprisonment, a fine of up to $250,000, and a term of supervised release of five years to life.
This case was investigated by members of the North Carolina Internet Crimes Against Children (ICAC) Task Force, including the Pitt County Sheriff’s Office, Elkin Police Department and North Carolina State Bureau of Investigation, and prosecuted by Assistant United States Attorney Anand P. Ramaswamy.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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.
Eight Members of New York Cell of Cybercrime Organization Indicted in $45 Million Cybercrime CampaignRead the Press Release
A four-count federal indictment was unsealed in Brooklyn charging eight defendants with participating in two worldwide cyberattacks that inflicted $45 million in losses on the global financial system in a matter of hours.1 These defendants allegedly formed the New York-based cell of an international cybercrime organization that used sophisticated intrusion techniques to hack into the systems of global financial institutions, steal prepaid debit card data, and eliminate withdrawal limits. The stolen card data was then disseminated worldwide and used in making fraudulent ATM withdrawals on a massive scale across the globe. The eight indicted defendants and their co-conspirators targeted New York City and withdrew approximately $2.8 million in a matter of hours. The defendants are charged variously with conspiracy to commit access device fraud, money laundering conspiracy, and money laundering.
Seven of the eight defendants have been arrested on the charges in the indictment: the arrested defendants are Jael Mejia Collado, Joan Luis Minier Lara, Evan Jose Peña, Jose Familia Reyes, Elvis Rafael Rodriguez, Emir Yasser Yeje, and Chung Yu-Holguin, all residents of Yonkers, New York. Rodriguez was arrested on a criminal complaint on March 27, 2013, when he attempted to flee the United States for the Dominican Republic. Peña was arrested on a criminal complaint in Yonkers, New York, on April 3, 2013. Lara, Reyes, and Yeje surrendered to law enforcement authorities on April 15, 2013, and Collado and Yu-Holguin were arrested yesterday afternoon. The indictment also charges an eighth defendant, Alberto Yusi Lajud-Peña, also known as “Prime” and “Albertico,” who is reported to have been murdered on April 27, 2013, in the Dominican Republic. The case has been assigned to United States District Judge Kiyo A. Matsumoto.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Steven Hughes, Special Agent in Charge, United States Secret Service, New York Field Office, and James T. Hayes, Jr., Special Agent in Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York.
“As charged in the indictment, the defendants and their co-conspirators participated in a massive 21st century bank heist that reached across the Internet and stretched around the globe. In the place of guns and masks, this cybercrime organization used laptops and the Internet. Moving as swiftly as data over the Internet, the organization worked its way from the computer systems of international corporations to the streets of New York City, with the defendants fanning out across Manhattan to steal millions of dollars from hundreds of ATMs in a matter of hours,” stated United States Attorney Lynch. “Law enforcement is committed to moving just as swiftly to solve these cybercrimes and bring their perpetrators to justice.”
“New technologies and the rapid growth of the Internet have eliminated the traditional borders of financial crimes and provided new opportunities for the criminal element to threaten the world’s financial systems. However, as demonstrated by the charges and arrests announced today, the Secret Service and its law enforcement partners have adapted to these technological advancements and utilized cutting edge investigative techniques to thwart this cybercriminal activity,” said Secret Service Special Agent in Charge Hughes. “I want to take this opportunity to commend the dedicated men and women of the Secret Service and HSI for their extraordinary efforts in this investigation. This case is an excellent example of the impact that can be made when the law enforcement community works together.”
“The arrests today reflect the government’s joint efforts to bring a global cybercrime enterprise to justice,” said HSI Special Agent in Charge Hayes. “HSI is proud to be part of a proactive federal law enforcement initiative that uses its collective resources to pull the plug on those who attempt to use the Internet to commit bank robbery.”
The “Unlimited Operation”
As alleged in the indictment and other court filings, the cyberattacks employed by the defendants and their co-conspirators in this case are known in the cyber underworld as “Unlimited Operations” – through its hacking “operation,” the cybercrime organization can access virtually “unlimited” criminal proceeds.
The “Unlimited Operation” begins when the cybercrime organization hacks into the computer systems of a credit card processor, compromises prepaid debit card accounts, and essentially eliminates the withdrawal limits and account balances of those accounts. The elimination of withdrawal limits enables the participants to withdraw literally unlimited amounts of cash until the operation is shut down. “Unlimited Operations” are marked by three key characteristics: (1) the surgical precision of the hackers carrying out the cyberattack, (2) the global nature of the cybercrime organization, and (3) the speed and coordination with which the organization executes its operations on the ground. These attacks rely upon both highly sophisticated hackers and organized criminal cells whose role is to withdraw the cash as quickly as possible.
As alleged in court filings, “Unlimited Operations” are executed in the following manner: First, over the course of months, the hackers plan and execute sophisticated cyber intrusions to gain unauthorized access to the computer networks of credit card processors that are responsible for processing prepaid debit card transactions. They target databases of prepaid debit cards, which are typically loaded with finite funds; such cards are used by many employers in lieu of paychecks and by charitable organizations to distribute disaster assistance. The cybercriminals breach the debit card accounts’ security protocols, then dramatically increase the balances and effectively eliminate the withdrawal limits on the accounts. The elimination of withdrawal limits enables the participants to withdraw unlimited amounts of cash until the operation is shut down. Next, the cybercrime organization cashes in, by distributing the hacked prepaid debit card numbers to trusted associates around the world – the two cyberattacks charged in this case allegedly involved 26 countries. These associates operate cells or teams of “cashers,” who encode magnetic stripe cards, such as gift cards, with the compromised card data. When the cybercrime organization distributes the personal identification numbers (PINs) for the hacked accounts, the casher cells spring into action, immediately withdrawing cash from ATMs across the globe. Meanwhile, the cybercrime organization maintains access to the computer networks of the credit card processors they have hacked in order to monitor the withdrawals. At the end of an operation, when the cards are finally shut down, the casher cells launder the proceeds, often investing the operation’s proceeds in luxury goods, and kick money back up to the cybercrime organization’s leaders.
The Charged “Unlimited Operation” Cyberattacks
According to the government’s filings, between approximately October 2012 and April 2013, the defendants and their co-conspirators conducted two Unlimited Operations. The first operation, on December 22, 2012, targeted a credit card processor that processed transactions for prepaid MasterCard debit cards issued by the National Bank of Ras Al-Khaimah PSC, also known as RAKBANK, in the United Arab Emirates. After the hackers penetrated the credit card processor’s computer network, compromised the RAKBANK prepaid card accounts, and manipulated the balances and withdrawal limits, casher cells across the globe operated a coordinated ATM withdrawal campaign. In total, more than 4,500 ATM transactions were conducted in approximately 20 countries around the world using the compromised RAKBANK account data, resulting in approximately $5 million in losses to the credit card processor and RAKBANK. In the New York City area alone, over the course of just two hours and 25 minutes, the defendants and their co-conspirators conducted approximately 750 fraudulent transactions, totaling nearly $400,000, at over 140 different ATM locations in New York City.
As alleged in the indictment and other court filings, the second of these Unlimited Operations occurred on the afternoon of February 19 and lasted into the early morning of February 20, 2013. This operation again breached the network of a credit card processor that serviced MasterCard prepaid debit cards, this time issued by the Bank of Muscat, located in Oman. Again, after the cybercrime organization’s hackers compromised Bank of Muscat prepaid debit card accounts and distributed the data, the organization’s casher cells engaged in a worldwide ATM withdrawal campaign. This attack was particularly devastating: Over the course of approximately 10 hours, casher cells in 24 countries executed approximately 36,000 transactions worldwide and withdrew about $40 million from ATMs. From 3 p.m. on February 19 through 1:26 a.m. on February 20, the defendants and their co-conspirators withdrew approximately $2.4 million in nearly 3,000 ATM withdrawals in the New York City area.
As charged in the indictment and other filings, defendant Alberto Yusi Lajud-Peña was the leader of the New York cell of this organization, and in the wake of the charged Unlimited Operations, he and defendants Elvis Rafael Rodriguez and Emir Yasser Yeje laundered hundreds of thousands of dollars in illicit cash proceeds. In one transaction alone, nearly $150,000 in the form of 7,491 $20 bills, was deposited at a bank branch in Miami, Florida, into an account controlled by defendant Alberto Yusi Lajud-Peña. Cell members also invested the criminal proceeds in portable luxury goods, such as expensive watches and cars. To date, the United States has seized hundreds of thousands of dollars in cash and bank accounts, two Rolex watches and a Mercedes SUV, and is in the process of forfeiting a Porsche Panamera. The Mercedes and Porsche were purchased with $250,000 in proceeds of this scheme.
In announcing the charges, United States Attorney Lynch praised the extraordinary efforts of the Secret Service in responding so rapidly to these attacks and investigating both the complex network intrusions that occurred overseas and the criminal activity occurring locally. Ms. Lynch also thanked the Department of Homeland Security for its invaluable role in recent arrest and seizure operations, as well as MasterCard, RAKBANK, and the Bank of Muscat for their cooperation with this investigation. Ms. Lynch expressed gratitude for the timely and extensive assistance of law enforcement authorities in Japan, Canada, Germany, and Romania, and also thanked authorities in the United Arab Emirates, Dominican Republic, Mexico, Italy, Spain, Belgium, France, United Kingdom, Latvia, Estonia, Thailand, and Malaysia for their cooperation in this investigation.
If convicted, the defendants face a maximum sentence of 10 years’ imprisonment on each of the money laundering charges and 7.5 years on the conspiracy to commit access device fraud charge, restitution, and up to $250,000 in fines. In addition, all property involved in the money laundering offenses and all proceeds of the conspiracy to commit access device fraud are subject to forfeiture.
The government’s case is being prosecuted by Assistant United States Attorneys Cristina M. Posa, Hilary Jager, Brian Morris, and Kevin Trowel.
The Defendants:
ALBERTO YUSI LAJUD-PEÑA (deceased)
Age: 23JAEL MEJIA COLLADO
Age: 23JOAN LUIS MINIER LARA
Age: 22EVAN JOSE PEÑA
Age: 35JOSE FAMILIA REYES
Age: 24ELVIS RAFAEL RODRIGUEZ
Age: 24EMIR YASSER YEJE
Age: 24CHUNG YU-HOLGUIN
Age: 22_____________________________
1 The charges contained in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Eight Facing Charges in Large Scale Heroin Distribution SchemeRead the Press Release
PITTSBURGH, Pa. – Eight current and former residents of Allegheny County have been indicted by a federal grand jury in Pittsburgh for violating federal narcotics trafficking laws on a major scale, United States Attorney David J. Hickton announced today.
The two-count indictment, unsealed today, charges Eric Ewell, 30; Canaan Bey, 26; William Fielder, 30; Terrious Harper, 29; Khalid Kareem, 29; Donnell Morris, 28; Donnie Morris, 29; and Brandon Thompson, 31, as the defendants.
According to the indictment, between January 2011 and June 2012, the defendants conspired to distribute and possess with intent to distribute one kilogram or more of heroin; and, on June 27 and June 28, 2012, Donnell Morris and Donnie Morris attempted to possess with intent to distribute one kilogram or more of heroin. The indictment seeks forfeiture of more than $1.2 million in heroin trafficking proceeds, a Porsche automobile, and a residence located in Pittsburgh.
The law provides for a maximum total sentence of at least 10 years and up to life in prison, a fine of up to $10,000,000, or both for the defendants. Under the Federal Sentencing Guidelines, the actual sentences imposed would be based upon the seriousness of the offenses and the prior criminal histories, if any, of the defendants.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Drug Enforcement Administration in Pittsburgh, New York, and Charlotte, the Pennsylvania State Police, the Pittsburgh Police Department, the Pennsylvania Attorney General's Office, the Allegheny County Police Department, the Wilkins Township Police Department, the East Pittsburgh Police Department, the New York Police Department, and the Allegheny County District Attorney's Office conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Dolton Police Officer Convicted of Civil Rights Violations for Using Excessive Force with BatonRead the Press Release
CHICAGO — A south suburban Dolton police officer was convicted today of federal civil rights charges for using excessive force against two victims outside a Dolton nightclub in May 2009. The defendant, KEVIN FLETCHER, who is on administrative leave from the department, was found guilty on two counts of violating the victims’ civil right to be free from the use of unreasonable force by a person acting under color of law. Jurors, who had the benefit of a video recording that captured most of the scene, deliberated less than an hour today after a trial that began Monday in U.S. District Court.
Fletcher, 35, of South Holland, faces a maximum penalty of 10 years in prison and a $250,000 fine on each count. He was ordered to return to court at 9:45 a.m. Monday for a hearing on the government’s motion to revoke his bond before U.S. District Judge Elaine Bucklo. Sentencing was set for 10:30 a.m. on Aug. 16.
Fletcher joined the Dolton Police Department in October 2006. The evidence at trial showed that at approximately 2 a.m. on May 17, 2009, he and other officers were working crowd control outside the former Mr. Ricky’s 141 Club, as it and other bars along Chicago Road near 141st Street in Dolton were closing. While performing his duties as a police officer, Fletcher used an expandable metal police baton as a dangerous weapon to strike two victims, Michael McPherson and Laurence Williams, once each in the head. The jury found that both victims suffered bodily injury, and the evidence showed that both required hospital treatment and staples to close their head wounds.
Assistant U.S. Attorneys Tinos Diamantatos and Megan Cunniff Church argued to the jury today that Fletcher was offended by the victims cursing at him as he directed them to depart the Chicago Road area after leaving the nightclub, and then abused his authority by striking them each over the head with his baton to “teach them a lesson.” Fletcher made no effort or attempt to arrest either victim and departed the scene after striking them with his baton, without rendering or summoning any medical aid. Both victims, as well as Fletcher, testified at the trial.
Before trial, the government dismissed an obstruction of justice count that was contained in the November 2011 indictment against Fletcher.
The guilty verdict was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Justice Department’s Civil Rights Division assisted in the investigation.
District Man Pleads Guilty to Felony Charges in Attempted Sexual Assault-Defendant Lured Victim into His Car by Offering A Ride Home-Read the Press Release
WASHINGTON – Ronnie Moore, 48, of Washington, D.C., pled guilty today to charges stemming from an incident last year in which he lured a woman into his car and then tried to sexually assault her, announced U.S. Attorney Ronald C. Machen Jr.
Moore pled guilty in the Superior Court of the District of Columbia to charges of assault with intent to commit first-degree sexual abuse and felony threats. The Honorable Ronna L. Beck scheduled sentencing for July 19, 2013. As a result of the plea, Moore must register as a sex offender for the rest of his life.
According to the government’s evidence, on March 10, 2012, at about 10 a.m., Moore was driving a four-door blue car at the intersection of Branch and Pennsylvania Avenues SE. The victim, then 19, was standing at a bus stop at that location, and Moore pulled up and offered the victim a ride. Moore said that he knew the victim’s mother, who he mentioned by name, and the victim accepted the ride.
Once inside his vehicle, Moore began complimenting the victim on her looks and asked her if she would be willing to have sex for money. When the victim refused, Moore threatened to kill her if she did not comply. The victim then punched Moore in the face and attempted to escape. Moore struggled to keep her in his car. The victim was able to escape the car, but left several personal effects in the vehicle. Moore sped away from the area.
On June 20, 2012, the victim saw Moore in a checkout line at a supermarket on Alabama Avenue SE. She and a relative confronted Moore, and then reported the sighting to a police officer working at the supermarket. Moore was then placed under arrest.
In announcing the plea, U.S. Attorney Machen commended the work performed by those who investigated the case from the Metropolitan Police Department’s Sex Crime Investigations Division. He also praised those who handled the case for the U.S. Attorney’s Office, including Victim Witness Advocate Lesley Richardson, Paralegal D’Yvonne Key, and Information Technology Specialist Kimberly Smith. Finally, he commended Assistant U.S. Attorneys Mervin A. Bourne, Jr. and Jeff T. Cook, who investigated and prosecuted the matter.
13-164Departments of Justice and Education Reach Settlement to Address and Prevent Sexual Assault and Harassment of Students at the University of Montana in MissoulaRead the Press Release
The Department of Justice and the Department of Education’s Office for Civil Rights obtained a comprehensive resolution agreement today with the University of Montana-Missoula in Missoula, Mont., to ensure that it responds swiftly and effectively to allegations of sexual assault and harassment by students. In May 2012, the United States launched a comprehensive review of the university’s handling of sexual assault and harassment complaints over a three-year period, as well as its policies, procedures, training and student education efforts. The Department of Justice today also obtained a separate agreement with the university to resolve allegations that the university’s campus police force, the Office of Public Safety (OPS), discriminated against women by failing to adequately respond to reports of on-campus sexual assault.
The two agreements announced today resolve both of the United States’ investigations of the university: under Title IX of the Education Amendments of 1972 and Title IV of the Civil Rights Act of 1964, which both prohibit sex discrimination in education programs, including sexual assault and harassment, and the Department of Justice’s investigation of the university’s campus police under the Violent Crime Control and Law Enforcement Act of 1994, and the anti-discrimination provisions of the Omnibus Crime Control and Safe Streets Act of 1968. The Department of Justice continues to seek resolution in its investigations of the Missoula Police Department and the Missoula County Attorney’s Office for their alleged failure to adequately respond to complaints of sexual assault.
The first agreement details specific steps the university will take to:
- Revise the university’s policies, procedures and investigative practices to provide a grievance procedure that ensures prompt and equitable resolution of sexual harassment and sexual assault allegations;
- Adequately investigate and respond to allegations of retaliation by students who have alleged sexual assault;
- Take sufficient effective action to fully eliminate a hostile environment based on sex, prevent its recurrence and address its effects;
- Ensure that the individuals designated to coordinate its Title IX efforts receive adequate training and coordinate these efforts effectively; and
- Revise the university’s notice of nondiscrimination to adequately inform students that sex discrimination is prohibited.
The university’s separate agreement with the Department of Justice resolving the investigation of the university’s OPS requires that the university:
- Implement or revise policies, provide training and change practices to improve its response to sexual assault, including combating gender bias;
- Work with an independent monitor, community-based organizations and other stakeholders, to develop and implement the reforms described in the agreement and to evaluate OPS’ success in effecting meaningful reform;
- Demonstrate that its implementation of the agreement has eliminated a pattern or practice of constitutional violations and that it has put in place systems and oversight that will prevent patterns or practices of unconstitutional conduct from recurring; and
- Develop procedures for gathering and analyzing data to assess the incidence and outcomes of reports of sexual assault.
The university anticipates that it will achieve compliance with this agreement within two years.
“For students to feel safe and welcome on college campuses, sexual assault and harassment must be swiftly and effectively addressed,” said Jocelyn Samuels, Principal Assistant Attorney General for the Civil Rights Division of the Department of Justice. “We applaud the university for its cooperation and for taking the steps necessary to maintain a safe learning environment for all students. These agreements provide a blueprint for colleges and universities across the country to take effective steps to prevent and address sexual assault and harassment on their campuses.”
“Through these agreements, President Engstrom and the University of Montana staff have embraced change, not the status quo–they are problem solvers. They are to be commended for developing and implementing a plan to resolve safety issues at the university. The agreements entered into today, between the United States and the University of Montana, when fully implemented, will ensure that a safe living and learning environment will exist at the university where our children will be well educated, nurtured and where they will be allowed to achieve their full potential in a wholesome academic setting,” said U.S. Attorney for the District of Montana Michael W. Cotter.
“Sexual harassment and sexual violence exact a devastating toll on students and interfere with their ability to learn in environments that are safe and free from discrimination. The Department of Education expects that today’s resolution agreement will foster a safer environment and one that gives all students the chance to succeed at the University of Montana,” said Acting Assistant Secretary for Civil Rights at the Department of Education, Seth Galanter.
The prevention of sex-based discrimination is a top priority of the Justice Department’s Civil Rights Division and U.S. Attorney Offices. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office for the District of Montana is available on its website at www.justice.gov/usao/mt. The enforcement of Title IX is also a top priority of the Department of Education’s Office for Civil Rights. Additional information about the Office for Civil Rights is available on its website at www.ed.gov/ocr/.
Related Material:
- UM Office of Public Safety Letter of Findings
- UM Letter of Findings
- UM Agreement
- UM Office of Public Safety Agreement
- Deputy Assistant Attorney General for the Civil Rights Division Roy L. Austin Jr. Speaks at the Press Conference on the Agreements with the University of Montana
Council Bluffs Man Sentenced on Methamphetamine ChargeRead the Press Release
COUNCIL BLUFFS, IA – On May 9, 2013, John Theodore Beaman, Sr., age 50, of Council Bluffs, Iowa, was sentenced in United States District Court in Council Bluffs on a charge of conspiracy to distribute methamphetamine, announced United States Attorney Nicholas A. Klinefeldt. Senior United States District Court Judge Robert W. Pratt sentenced Beaman to 120 months in prison, to be followed by 10 years of supervised release.
Beaman was also ordered to pay a $100.00 special assessment for the Crime Victim Fund. Beaman remained in the custody by the United States Marshal’s Service pending designation of the Federal Bureau of Prisons facility at which he will serve his sentence. Beaman was sentenced based upon his plea of guilty, which was entered on February 8, 2013. Beaman was sentenced for his role in a conspiracy to distribute methamphetamine in and around Council Bluffs, Iowa, from late 2009 to July of 2011. During the course of the conspiracy, approximately eleven pounds of methamphetamine were distributed. As a part of the conspiracy, Beaman frequently distributed methamphetamine from his residence, which was only about 84 feet from the property of an elementary school.
Previously sentenced in association with this investigation were: David Lynn Fisher, who was sentenced to 117 months imprisonment, plus 5 years of supervised release; Steven Lacey Etherington, who was sentenced to 150 months in prison, plus 5 years of supervised release; Nicholas Joseph Franks, who was sentenced to 133 months imprisonment, plus 5 years of supervised release for the drug trafficking conspiracy, and 120 months imprisonment, plus 3 years of supervised release for a firearms conviction, with the sentences to run concurrently; and Lisa Marie Barrett, who was sentenced to 60 months in prison, plus 5 years of supervised release.
This case was investigated by the SouthWest Iowa Narcotics Enforcement Task Force, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Colorado Man Sentenced for Defrauding the IRS Out of $1.8 Million DollarsRead the Press Release
DENVER – Thomas William Quintin, age 66, formerly of Denver, Colorado, was sentenced yesterday by U.S. District Court Judge R. Brooke Jackson to serve 63 months in federal prison for conspiracy to defraud the United States, the United States Attorney’s Office and Internal Revenue Service Criminal Investigation announced. Following his prison sentence, Quintin was ordered to spend 3 years on supervised release. Judge Jackson also ordered the defendant to pay $626,451.62 in restitution to the IRS.
Quintin was indicted by a federal grand jury in Denver on February 8, 2012. Quintin pled guilty on January 3, 2013, and was sentenced yesterday, Wednesday, May 8, 2013.
According to the stipulated facts contained in the plea agreement, starting in July 2009, Quintin participated in a conspiracy during the period of July 2009 through October 2009 to submit to the IRS thousands of false federal individual income tax returns claiming a total of $1,834,011 in refunds in the names of deceased individuals. As part of the scheme, the conspirators established, controlled, and operated a Colorado entity known as Total Tax Services and/or Total Tax and Accounting (TTS), which maintained an office location in Englewood, Colorado.
According to court records, Quintin and his coconspirator obtained from an online database the names, dates of birth, Social Security Numbers and other identifying information of deceased individuals which they then used to prepare and file tax returns in their names. They hired at least one individual whose job was to create email accounts for those deceased individuals. Establishing email accounts in the names of the deceased individuals was necessary in order to file the tax returns on-line. They also obtained employer identification numbers (EINs) for various businesses, which they used to claim falsely on tax returns that the deceased individuals had worked at those businesses during the year 2008, earned income, and had taxes withheld from that income; all to allow Quintin to claim false refunds based on that false income tax withholding.
“When criminals defraud the United States by obtaining false tax refunds they harm all Americans,” said U.S. Attorney John Walsh.
"The intent of this scheme was to swindle the government and the taxpaying public," said Stephen Boyd, Special Agent in Charge for IRS Criminal Investigation, Denver Field Office. “Furthermore, the IRS is aggressively pursuing those who steal others' identities in order to file false returns.”
This case was investigated by IRS Criminal Investigation and the Social Security Administration Office of the Inspector General, and is being prosecuted by Tax Division Trial Attorney John Scully and a member of the Economic Crime Section of the U.S. Attorney’s Office, District of Colorado.
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Cocaine Trafficker Sentenced to 8 Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Charlie Rosario, 29, formerly of North Providence, R.I., was sentenced on Wednesday to 96 months in federal prison for conspiracy and trafficking more than 500 grams of cocaine in November 2010, announced United States Attorney Peter F. Neronha; John J. Arvanitis, Special Agent in Charge of the DEA’s New England Field Division; and United States Marshal Jamie A. Hainsworth.
U.S. District Court Judge John J. McConnell, Jr. also ordered Rosario to serve five years of supervised release upon completion of his prison term. Rosario pleaded guilty on September 7, 2012, to a two-count indictment charging him with conspiracy to possess with the intent to distribute more than 500 grams of cocaine and possession with the intent to distribute more than 500 grams of cocaine.
According to information presented to the court at the time of Rosario’s guilty plea, on November 3 and 4, 2011, a person cooperating with law enforcement during an investigation into Rosario’s drug trafficking activities arranged by telephone for the delivery of all of the cocaine Rosario had in his possession in exchange for $24,500. Rosario estimated that he had approximately 850 grams of cocaine in his possession. Rosario arranged for another person to make the delivery to a Cranston residence.
According to information presented to the court, on November 4, 2010, DEA Drug Task Force agents, with the assistance of Cranston Police, arrested Julio Ernesto Soto, 31, of Salem, Mass., as he delivered the cocaine to the Cranston residence. At the time of Soto’s arrest, law enforcement agents seized 832.6 grams of cocaine.
Soto pleaded guilty on February 3, 2011, to a one-count federal indictment charging him with possession with the intent to distribute more than 500 grams of cocaine. He was sentenced on May 27, 2011, by U.S. District Court Judge William E. Smith to 60 months in federal prison, to be followed by four years of supervised release.
Rosario, who moved from the area at the time of Soto’s arrest, was located in Taunton, Mass., and arrested by the U.S. Marshals Fugitive Task Force in June 2011. Rosario has been detained in federal custody since his arrest.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah
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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]Christopher Joseph Ladue Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on May 9, 2013, before U.S. Magistrate Judge Keith Strong, CHRISTOPHER JOSEPH LADUE, a 26-year-old resident of Browning and an enrolled member of the Blackfeet Tribe, pled guilty to sexual abuse of a minor. Sentencing has been set for August 14, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Ryan G. Weldon, the government stated it would have proved at trial the following:
On February 3, 2012, Blackfeet Child Protective Services notified the FBI that a twelve-year-old girl ("X.X.") tested positive for pregnancy at the Blackfeet Community Hospital. The school therapist treating X.X. reported to investigators that X.X. spoke about spending time with LADUE.
When questioned, LADUE admitted that he was likely the father of X.X.'s baby.
LADUE faces possible penalties of 15 years in prison, a $250,000 fine and lifetime supervision.
The investigation was conducted by the Federal Bureau of Investigation.
Child Pornography Charges Filed Against Michael Lee HaynesRead the Press Release
MICHAEL LEE HAYNES, 30, of Anniston, Alabama, was indicted by a federal grand jury today for crimes involving the sexual exploitation of children, announced U. S. Attorney Dana J. Boente.
HAYNES was charged in an Indictment for Distribution of Child Pornography. According to today’s indictment, on October 26, 2012, HAYNES distributed images of child pornography through the use of a computer.
If convicted, HAYNES faces a mandatory minimum penalty of five years and a maximum penalty of twenty years, followed by up to a lifetime term of supervised release, and a $250,000 fine.
U. S. Attorney Boente reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This case was investigated by special agents from the U. S. Department of Homeland Security, HSI. The prosecution of this case is being handled by Project Safe Childhood Coordinator, Assistant U. S. Attorney Brian M. Klebba.
(Download Indictment )
Cedar Rapids Felon and Drug User Sentenced to Almost 6 Years in Prison for Unlawful Possession of A FirearmRead the Press Release
A man who used marijuana and possessed a firearm after being convicted of a felony offense was sentenced today to almost six years in federal prison.
Andre Kase, Jr., age 20, from Cedar Rapids, Iowa, received the prison term after a February 27, 2013, guilty plea to one count of possession of a firearm by a felon and unlawful user of marijuana.
At the plea hearing, Kase admitted that on October 8, 2012, Cedar Rapids police officers responded to a report of an attempted burglary in progress. Upon arriving in the area, officers found Kase in possession of a stolen Smith and Wesson .380 caliber handgun. Kase admitted that he was a marijuana user and that he had been convicted of Burglary on September 19, 2012. Kase was also convicted in March 2012 of Carrying Weapons in which he admitted shooting a man with a stolen gun during a drug deal.
Kase was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Kase was sentenced to 71 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Kase is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was prosecuted as part of Project Safe Neighborhoods, a cooperative local, state and federal program aimed at the enhanced prosecution of gun crimes. The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and was investigated by the Cedar Rapids Police Department, the Bureau of Alcohol, Tobacco, and Firearms and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-0084.
Canton City Alderman IndictedRead the Press Release
Jackson, Miss - Calvin Louis Smith, 56, a Canton City Alderman, was arraigned today in federal court before U.S. Magistrate Judge Linda R. Anderson pursuant to a federal indictment charging him with bribery in connection with a series of transactions of the City of Canton, Mississippi, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen.
Davis is scheduled for trial on July 9, 2013 before District Judge Henry T. Wingate. If convicted of the charges, he faces a maximum penalty of 10 years in prison and a $250,000.00 fine.
This case was investigated by the Federal Bureau of Investigation.
The public is reminded that an indictment is an allegation that a defendant has committed a crime. All defendants are presumed innocent until and unless proven guilty.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Cambria County Woman Conspired to Grow Marijuana PlantsRead the Press Release
JOHNSTOWN, Pa. - A resident of Carrolltown, Pa., pleaded guilty in federal court to a charge of conspiracy to manufacture and possess marijuana plants, United States Attorney David J. Hickton announced today.
Judy A. Bender, 49, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that in the spring of 2011, Bender conspired to manufacture and possess with the intent to distribute more than 100 marijuana plants but less than 1,000 marijuana plants. In addition, evidence presented to the Court at the time of Bender's guilty plea reflected that she conspired with George M. Lowmaster and others to grow marijuana plants with the intent to facilitate and promote George M. Lowmaster's drug distribution organization.
Judge Gibson scheduled sentencing for Oct. 24, 2013, at 10:30 a.m. The law provides for a total sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.Pending sentencing, the court continued Bender on bond.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
A joint task force, headed by the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, conducted the investigation that led to the prosecution of Bender. Other agencies participating on the task force include the Internal Revenue Service-Criminal Investigation; Pennsylvania State Police; the Pennsylvania Attorney General's Office; the Cambria County District Attorney's Office; the Carrolltown Police Department; the Patton Police Department; the Ebensburg Police Department; the Portage Police Department and the Paint Township Police Department.
Burnsville Woman Convicted of Mailing Letters Intended to Extort MoneyRead the Press Release
MINNEAPOLIS—Late yesterday afternoon, a federal-court jury found a 49-year-old Burnsville woman guilty of mailing threatening letters and letters meant to extort money. The jury convicted Deborah Mae Carlson of 12 counts of mailing threatening communications. Carlson was indicted on November 22, 2011.
The evidence presented at trial proved that on eight separate occasions, Carlson sent threatening letters to an individual. The letters were mailed on March 1, March 11, April 5, April 13, April 20, April 27, May 3, and May 24, 2010. All contained threats to injure that individual. She also sent a threatening letter to a second person. Moreover, Carlson mailed letters to various businesses in the first individual’s name.
Those letters, which demanded money, were sent to the store manager of the Eagan Target store on April 14, 2010; the store manager of the Valley Buick Pontiac GMC dealership in Apple Valley on April 15, 2010; and the Scott Lake Veterinary Center in Prior Lake on April 17, 2010.
For her crimes, Carlson faces a potential maximum penalty of 10 years in federal prison on each threat count and a total of 24 years on the three extortion counts. United States District Court Judge John R. Tunheim will determine her sentence at a future hearing, yet to be scheduled.
This case resulted from an investigation conducted by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Minnesota Bureau of Criminal Apprehension’s Forensic Science Laboratory, and the police departments of Lakeville, Apple Valley, Savage, Shakopee, and Eagan. The case was prosecuted by Assistant U.S. Attorney Jeffrey S. Paulsen.Bureau of Indian Education Employee Sentenced for Stealing Charity Funds Provided for Children Attending the Kaibeto Boarding SchoolRead the Press Release
FLAGSTAFF, Ariz. –Marcellina Tohonnie, 36, a Bureau of Indian Education employee, was sentenced on April 23, 2013 by U.S. Magistrate Judge Mark Aspey in federal court in Flagstaff, AZ, for stealing charitable donations to children attending the Kaibeto Boarding School. She received five years of supervised probation and was ordered to repay $23,226 in restitution to Children Incorporated – an international nonprofit organization assisting needy children in the U.S. and abroad.
The charges stem from a U.S. Department of the Interior, Office of Inspector General investigation of Tohonnie’s embezzlement of Children Incorporated account funds, sponsoring 47 Native American students, grades kindergarten through 8th, at the Kaibeto Boarding School. As the school’s former Children Incorporated program coordinator, Tohonnie was entrusted with accepting and using donations to purchase basic necessities (e.g. clothing, school supplies, etc.) for the children enrolled in the program. Instead, Tohonnie embezzled approximately $25,000 from the Children Incorporated account to pay for personal expenses – including clothing, salon visits, gifts, car repairs, and travel to Las Vegas, Nev.
“This case is a reflection of the Inspector General’s continued involvement in Indian Country and our dedication to insure the integrity of all U.S. Department of the Interior programs,” said Jack Rohmer, Special Agent-In-Charge.
Children Incorporated U.S. Program Director Renée Kube said, “Children Incorporated serves over 20,000 children on an annual basis, and has assisted more than 250,000 children since our founding in 1964. We provide these resources because we believe passionately that children everywhere deserve education, hope and opportunity. We are deeply grateful for the dedication, time and efforts given by the U.S. Attorney’s Office and the Office of the Inspector General.”
Under a plea agreement with the U.S. Attorney’s Office, Tohonnie pleaded guilty to one count of 18 USC '1163, embezzlement and theft from Indian tribal organizations.
The investigation in this case was conducted by the U.S. Department of the Interior, Office of Inspector General. This case was prosecuted by Assistant United States Attorney Adam Zickerman, District of Arizona, Flagstaff.
CASE NUMBER: 13mj4071
RELEASE NUMBER: 2013-038_ TohonnieFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Buffalo Man Pleads Guilty to Wire Fraud in Fraudulent Tax CaseRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Dewayne Vass, 30, of Buffalo, N.Y., pleaded guilty before U.S. District Judge William M. Skretny, to wire fraud affecting a financial institution. The charge carries a maximum penalty of 30 years in prison, a fine of $1,000,000 or both.
Assistant U.S. Attorney Trini E. Ross, who is handling the case, stated that the defendant was part of a scheme to defraud the government by obtaining money from the filing of false tax returns. Vass received the proceeds from one of the fraudulent tax returns which was filed with the Internal Revenue Service and for which the refund was placed on a prepaid debit card. The defendant used that card to obtain cash from an ATM totaling $6,248. As a result of the scheme, losses to the Internal Revenue Service totaled $72,589.00.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The 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.The plea is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service - Criminal Investigation Division, under the direction of Special Agent- in-Charge Toni M. Weirauch, and the United States Postal Inspection Service under the direction of Kevin Niland, Inspector in Charge, Boston Division.
Sentencing is scheduled for August 26, 2013, at 9:00 a.m. before Judge Skretny.Blairsville Man Conspired to Distribute HeroinRead the Press Release
JOHNSTOWN, Pa. - A resident of Blairsville, Pa., pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Clifford Bernard Camut, Jr., 20, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, from the spring of 2011 to May 15, 2012, Camut, along with multiple co-defendants, conspired to distribute and possess with intent to distribute one kilogram or more of heroin.
Judge Gibson scheduled sentencing for Oct. 24, 2013, at 9:30 a.m. The law provides for a maximum total sentence of life in prison and a fine of $4,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pennsylvania State Police and the Indiana Police Department conducted the investigation that led to the prosecution of Camut. Other agencies participating in this investigation included the Pennsylvania Attorney General’s Office, the Cambria County Drug Task Force, the Cambria County Sheriff’s Department, the Cambria County District Attorney’s Office, the Indiana County Drug Task Force, and the Indiana County District Attorney’s Office.
Bank Employee Indicted for Embezzlement of Nearly $250,000Read the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
Nine others indicted by Federal Grand Jury
CLARKSBURG, WEST VIRGINIA —United States Attorney William J. Ihlenfeld, II, announced that DEBORAH D. RADCLIFF, age 41, of Weston, West Virginia, was named in an eight-count Indictment charging her with one count of “Embezzlement by a Bank Employee” and seven counts of “Structuring.”
According to the Indictment, while serving as the branch manager of the Weston branch bank of Huntington National Bank from July 1, 2011, to November 5, 2012, RADCLIFF embezzled and misapplied $247,249.88 from depositors’ accounts and engaged in acts of structuring to cause the bank to fail to file a Currency Transaction Report for currency transactions of $10,000 or more. To execute the scheme, RADCLIFF utilized her position as branch manager to issue or direct to be issued cashier’s checks from funds withdrawn from depositors’ accounts issued in the name of the depositor. RADCLIFF would take possession of the cashier’s check, forge the name of the depositor and cash the checks for her own personal benefit. The ages of the alleged victims ranged from 56 to 90 years, with all but one alleged victim 64 years or older.
The Indictment also seeks the forfeiture of a money judgment of the $247,249.88. If convicted, RADCLIFF faces up to 30 years imprisonment and a $1,000,000 fine on the embezzlement count and up to 10 years imprisonment and a $500,000 fine on each of the structuring counts. This case will be prosecuted by Assistant United States Attorney John C. Parr and was investigated by the Federal Bureau of Investigation.
Other indictments returned by the grand jury include: MARTINSBURG DIVISION
DUANE MCATEE, age 43, of Metz, West Virginia, was named in a one-count
Indictment charging him with “Contempt of Court.” The Indictment alleges that on April 2,
2013, MCATEE disobeyed a lawful process of a Court by failing to appear as directed. If convicted, MCATEE faces up to six months imprisonment. The case was investigated by the FBI and IRS-CI.JOSE DELEON HERNANDEZ was named in a one-count Indictment charging him with “Illegal Reentry After Removal.” If convicted, HERNANDEZ faces up to two years imprisonment and a $250,000 fine. The case was investigated by US Immigration and Customs Enforcement, Homeland Security Investigations (ICE/HSI).
These two cases will be prosecuted by Assistant United States Attorney Paul T. Camilletti.
CLARKSBURG DIVISION
BRIAN FARLEY, age 30, of Oceana, West Virginia, was named in a fourteen-count Indictment charging him with six counts of “Obtaining Drugs by Fraud” and eight counts of “Making a Material False Statement.” If convicted, FARLEY faces up to 4 years imprisonment and a $250,000 fine on the fraud charges and up to 5 years imprisonment and a $250,000 fine on the false statement charges. This case will be prosecuted by Assistant United States Attorney Robert H. McWilliams, Jr. and was investigated by the US Deparmtent of Veterans’ Affairs/Office of Inspector General-Criminal Investigations Division.
EDWARD C. CROW, age 43, a former inmate at USP Hazelton, was indicted for multiple counts of “Possession of a Prohibited Object”, “Assaulting, Resisting and Impeding Officers,” and “Assault with a Dangerous Weapon with Intent to do Bodily Harm.” If convicted, CROW faces up to 40 years imprisonment. This case will be prosecuted by Assistant United States Attorney Brandon S. Flower and was investigated by the Special Investigative Services Staff at USP Hazelton.
SHANE O. BRANTLEY, age 36, of Sutton, West Virginia, was named in a one-count Indictment charging him with “Felon in Possession of a Firearm” on April 25, 2012, in Braxton County. If convicted, BRANTLEY faces a maximum exposure of 10 years imprisonment and a fine of $250,000.
RONALD M. STARKEY, age 27, of Morgantown, West Virginia, was named in a one- count Indictment charging him with “Felon in Possession of a Firearm” on May 24, 2011, in Morgantown. If convicted, STARKEY faces a maximum exposure of 10 years imprisonment and a fine of $250,000.
These two cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and
Explosives.CHRISTOPHER WEAVER, age 36, of Morgantown, was named in a three-count Indictment charging him with one count of “Distribution of Crack Cocaine” and two counts of “Distribution of Cocaine Hydrochloride.” If convicted, WEAVER faces up to 20 years imprisonment and a $1,000,000 fine on each count. This case was investigated by the West Virginia State Police-Bureau of Criminal Investigations.
WELFORD LEE HARRIS, age 27 and CASEY SMITH, age 20, of Morgantown were named in an eight-count Indictment charging them with“Conspiracy to Possess with Intent to Distribute and to Distribute Oxycodone” and multiple counts of “Distribution of Oxycodone” and “Possession with Intent to Distribute Cocaine Hydrochloride.” If convicted, HARRIS and SMITH face up to 20 years imprisonment and a $1,000,000 fine on each count. This case was investigated by the Mon Valley Drug Task Force and the West Virginia State Police. The task force consists of officers from Morgantown Police Department, the Monongalia County Sheriff’s Department, and the Drug Enforcement Administration.
These four cases will be prosecuted by Assistant United States Attorney Zelda E. Wesley.
All of the charges contained in the above-referenced indictments are merely accusations and not evidence of guilt, and each defendant is presumed innocent until and unless proven guilty.
Wednesday 8 May 2013
Valley Woman Sentenced for Social Security FraudRead the Press Release
United States District Court Judge Joseph F. Bataillon sentenced Kimberly A. Butinski, age 35 of Valley, Nebraska, following her conviction for making false statements to the Social Security Administration. Butinski was sentenced to one year and one day of imprisonment to be followed by three years of supervised release. She was further ordered to pay restitution in the amount of $39, 975.68.
Butinski applied for SSA SSI disability benefits on her children’s behalf and, further, applied to be their representative payee. SSI benefits are based on total household income. Butinski falsely reported that she had separated from her husband and that he was not living in the household so that she could receive increased payment amounts. As a result of those false statements, Butinski was paid $32,593.68 that she was not entitled to receive.
On July 22, 2011, in order to secure SNAP benefits, (food stamps), and energy assistance, Butinski telephonically applied for Nebraska HHS benefits. Butinski again falsely represented her husband was not living in the household. As a result, Butinski received an additional $7,382 that she was not entitled to receive.
This case was investigated by the Social Security Administration Office of Inspector General.
Utica, New York - Two Utica area men have pled guilty to committing a string of bank robberies.Read the Press Release
United States Attorney Richard S. Hartunian announced today that two Utica area men have pled guilty to committing a string of bank robberies.
ZACHARIAH EDWARDS, 21, of Frankfort, and NICHOLAS FERRONE, 21, of Utica, admitted robbing:
Chase Bank, 6004 Court Street, Syracuse, New York of $2,156 on January 14, 2013; Berkshire Bank, 2080 Western Avenue, Guilderland, New York of $2,566 on January 23, 2013;
Chase Bank, 4425 East Genesee Street, Dewitt, New York of $4,680.75 on January 28, 2013; Trustco Bank, 2050 Western Avenue, Guilderland, New York of $1,930 on February 13, 2013;
Bank of America, 638 Memorial Drive, Chicopee, Massachusetts of $3,300 on February 25, 2013;
Key Bank, 1610 Eastern Parkway, Schenectady, New York of $3,700 on March 1, 2013; and M&T Bank, 5170 West Taft Road, Syracuse, New York of $3,446 on March 4, 2013.In addition, FERRONE admitted to a robbery of the Alliance Bank at 142 Genesee Street, Oneida, New York of $2,240 on January 3, 2013. Although no weapons were displayed the robbers told the tellers they were armed during the course of several of the robberies.
EDWARDS has been held without bail since his arrest on March 8, 2013. FERRONE has likewise been held without bail since his arrest on March 11, 2013. They will both continue to be detained until their sentencing which is scheduled for October 1, 2013 before Senior U.S. District Judge Frederick J. Scullin, Jr. Bank robbery carries a maximum penalty of twenty years imprisonment and a fine of $250,000 on each count.
The investigation has been a multi-agency effort, including participation by the Dewitt Police Department, the New York State Police, the Guilderland Police Department, the Oneida Police Department, the Onondaga County Sheriff’s Office, Chicopee, Massachusetts Police Department, Schenectady Police Department and the Federal Bureau of Investigation. The case is being prosecuted by AUSA Edward R. Broton.
Upper Marlboro, Maryland Couple Sentenced to Prison for Harboring A Filipino Woman in Their Home for More Than 10 YearsRead the Press Release
Ordered to Pay the Victim Restitution of $369,580.80
Greenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Gloria Edwards, age 61, to a year and a day in prison, followed by three years of supervised release, and sentenced her husband, Alfred, age 74, to three months in prison, followed by seven months of home detention as part of two years of supervised release, for harboring a Filipino national whom they brought to the United States under false pretenses. As a condition of their supervised release, the defendants are prohibited from contacting or harassing the victim in any way. Chief Judge Chasanow also ordered the Edwards’, both of Upper Marlboro, Md, to pay restitution of $369,580.80 to the victim. The sentence was imposed late on May 7, 2013, and the amount of restitution was announced today.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Deputy Assistant Attorney General for the Department of Justice Civil Rights Division Roy L. Austin, Jr.; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
“Alfred and Gloria Edwards compelled the victim to work for them for a decade for little or no salary,” said U.S. Attorney Rod J. Rosenstein. “They were able to maintain control over the victim by bringing her into the United States under false pretenses, holding her passport and arranging for a sham marriage.”
According to their plea agreements and testimony presented at their sentencing, in October 1998, the couple arranged for the victim to enter the United States from the Philippines under false pretenses. Gloria Edwards paid $5,000 to cover the costs of the woman’s entry into the United States, including payment to another individual to secure the woman’s visa under false pretenses. The Edwards’ knew that the woman entered the United States without disclosing the true purpose of her visit, or that she would be residing at the Edwards’ residence. The woman arrived in the U.S. in May 1999. Gloria Edwards drove the woman to the Edwards’ home in Upper Marlboro, where the woman primarily resided until she left the residence in August 2009.
The woman provided low cost labor to the Edwards as a domestic servant and provided care for Gloria Edwards’ mother. According to testimony at the sentencing hearing, the Edwards’ took the woman’s passport and made the woman sign a contract stating that she would have to pay the Edwards’ $20,000 if she were to leave their service, so that they could replace her.
The Edwards’ admitted that during the more than 10 years that the woman was in the United States, they took steps to fraudulently obtain permanent resident status for the woman, including arranging a sham marriage.
Prior to sentencing the Edwards’ paid $6,716.20 to satisfy the disputed amount relating to allegations that they misappropriated funds.
United States Attorney Rod J. Rosenstein praised the Baltimore Division of the FBI for its work in the investigation. Mr. Rosenstein and Mr. Austin thanked Assistant U.S. Attorney Kristi N. O’Malley and Trial Attorney Cindy Chung of the Civil Rights Division’s Human Trafficking Prosecution Unit, who prosecuted the case.
United States Obtains Settlement from City of New York over Failure to Reasonably Accommodate Disabled Firefighter Who Was 9/11 First ResponderRead the Press Release
Loretta E. Lynch, United States Attorney for the Eastern District of New York, today announced the filing of a settlement agreement with the City of New York regarding allegations that the Fire Department (FDNY) violated the Americans with Disabilities Act (ADA) by failing to reasonably accommodate a disabled firefighter.The United States’ complaint was brought on behalf of Gerald Snell, a former FDNY fire captain who suffered irreversible lung damage while participating in search, rescue, recovery, and cleanup efforts at the World Trade Center site in New York City after September 11, 2001. The complaint alleges that the FDNY failed to reasonably accommodate Mr. Snell’s disability and forced him to retire despite his desire to remain with the FDNY in a non-firefighting capacity.
Under the Settlement Agreement, the FDNY has agreed to pay Snell back pay and to adjust his monthly pension payments. In addition, the FDNY has agreed to create and implement written reasonable accommodation procedures that comply with the ADA, which will ensure that all disabled firefighters are offered the opportunity to obtain reasonable accommodation and not be forced to retire if they wish to remain with the FDNY and are qualified for available “off-line” positions that do not involve firefighting duty.
“All New York City firefighters with disabilities – and in particular, 9/11 first responders such as Mr. Snell – are entitled to the protections of the Americans with Disabilities Act,” stated U.S. Attorney Lynch. “This includes the right to receive reasonable accommodation in the form of reassignment where appropriate, so that firefighters can continue to serve the people of New York City even if they are no longer physically able to fight fires. Their experience and expertise should not be lost.”
The government’s case is being litigated by Assistant U.S. Attorney Scott R. Landau.
Two Men Sentenced to Federal Prison for Identity Theft and Tax Refund Fraud ConspiracyRead the Press Release
PENSACOLA, FLORIDA – Senior United States District Judge Roger Vinson sentenced two men following their pleas of guilty to one count of conspiracy to defraud the government, four counts of theft of public money, and two counts of aggravated identity theft. Victor T. Williams, 28, of Tampa, Florida was sentenced to forty-two months, and Kenneth R. Faison, 51, of Foley, Alabama was sentenced to twenty-four months in prison. The sentences were announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Between November 2011 and November 2012, Williams fraudulently obtained tax refund checks in the Tampa area and sent them to Faison, who deposited and cashed the checks in banks in northwest Florida and southern Alabama. Faison used accounts in the name of a church where he served as pastor to convert the checks. Once Faison had deposited the checks, he kept a percentage of the stolen funds for himself and transferred the remainder to Williams. Faison and Williams also committed identity fraud to convert the checks in at least two instances, including using identifying information stolen from a victim taxpayer in order to add the taxpayer as signatory to Faison’s bank account so he could deposit a check. As part of each defendant’s sentence, Senior Judge Vinson ordered the payment of more than $220,000, which was successfully stolen from the government as a result of this conspiracy.
This case was investigated by the Internal Revenue Service – Criminal Investigations and was prosecuted by Assistant U.S. Attorney Alicia Kim as part of a Department of Justice initiative to fight stolen identity refund fraud (SIRF). In September 2012, the Department issued Tax Division Directive 144, which sets forth expedited Department review procedures for SIRF cases, enabling law enforcement to respond quickly and effectively to the grave challenges presented in SIRF cases and to prevent the victimization of innocent taxpayers whose identities are stolen by fraudsters.
Twenty-Nine Facing Federal Drug Trafficking Charges Based on a Multi-Agency Investigation in Dona Ana CountyRead the Press Release
ALBUQUERQUE – Twenty-nine residents of Doña Ana County, N.M., and El Paso County, Texas, including 22 who were arrested this morning, are facing federal drug trafficking charges as the result of a multi-agency investigation. The charges and arrests were announced by U.S. Attorney Kenneth J. Gonzales, Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI, Scott A. Luck, Chief Patrol Agent of the El Paso Sector of the U.S. Border Patrol, Chief Robert Shilling of the New Mexico State Police, Doña Ana County Sheriff Todd Garrison and Las Cruces Police Chief Richard Williams.
The defendants are charged in 13 criminal complaints with distributing cocaine, heroin, methamphetamine and marijuana in and around southern Doña Ana County. One of the defendants also is charged with illegally entering the United States after having been deported and another is charged with being a felon in possession of firearms. The criminal complaints, which were filed under seal on April 29, 2013 and May 6, 2013, were unsealed following an early morning law enforcement operation. Five of the defendants have yet to be arrested and are considered fugitives. Two others are in state custody on other charges and will be transferred to federal custody to face the charges in the complaints. The defendants arrested today will make their initial appearances in federal court in Las Cruces later this week.
Of the 29 defendants charged, 17 are residents of Anthony, N.M., and four are residents of Anthony, Texas. The eight remaining defendants reside in the following communities: two in Berino, N.M., two in Las Cruces, N.M.; two in Canutillo, Texas, one in Los Lunas, N.M., and one in Vado, N.M.
In announcing the charges and today’s arrests, U.S. Attorney Kenneth J. Gonzales commended the cooperative efforts of the federal, state and local law enforcement and said, “Today we embarked on a coordinated effort to crackdown on drug trafficking in Doña Ana County and improve the quality of life for people who live there. These arrests are part of our statewide fight against drugs and the cycle of violence that goes hand in hand with drug trafficking. The federal law enforcement community remains committed to working with its state and local partners to safeguard families throughout New Mexico.”
“The safety and security of our communities is the FBI's highest priority,” said Carol K.O. Lee Special Agent in Charge of the Albuquerque Division of the FBI. “The scope of today's successful law enforcement operation demonstrates the commitment of a dedicated team of federal, state and local agencies to ridding our streets of violent drug traffickers. I want to thank the FBI Special Agents, U.S. Attorney's Office, U.S. Border Patrol, FBI Southern New Mexico Gang Task Force, Las Cruces-Dona Ana Metro Narcotics Agency, Doña Ana County Sheriff's Office and our other partners who worked effectively together to make this day possible.”
“We have always enjoyed a strong working relationship with local law enforcement counterparts in New Mexico, and that is a big part of the success that we are seeing in cases like this,” stated Scott A. Luck, Chief Patrol Agent of the El Paso Sector of the U.S. Border Patrol. “We will continue to dedicate the necessary resources and to work jointly toward the dismantling of criminal elements.”
The charges against the 30 defendants are the result of an intensive four-month multi-agency investigation led by the FBI’s Las Cruces Cross-Border Drug Violence Hybrid Squad and Southern New Mexico Gang Task Force that targeted known drug dealers in southern Doña Ana County. The U.S. Border Patrol and the Las Cruces- Doña Ana County Metro Narcotics Agency, which is comprised of officers from the New Mexico State Police, the Doña Ana County Sheriff’s Office and the Las Cruces Police Department, participated in the investigation, which was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
During the course of the investigation, officers oversaw approximately 40 covert drug buys and the purchase of five firearms from the defendants. This morning, teams of federal, state, county and local law enforcement officers participated in an enforcement operation that included the execution of six federal search warrants at residences in Anthony, N.M.
“Regarding the constant war against drugs, the New Mexico State Police will always be in the forefront assisting the U.S. federal agencies with this fight,” said Chief Robert Shilling of the New Mexico State Police. “Operations like this target the violence associated with this epidemic, and create halcyon living conditions in our communities.”
“The protection of everyone in Doña Ana County is the primary function of the Doña Ana County Sheriff’s Department,” said Doña Ana County Sheriff Todd Garrison. “This morning we were part of a multi-agency operation that concentrated on the community of Anthony, NM using every piece of intelligence and surveillance available to this department. Working together on a larger scale such as this operation, the efforts of federal, state and local law enforcement resulted in safer streets for the residents in Anthony. Today was a flawlessly executed example of that.”
“The use and distribution of illicit drugs in our community is a public safety issue and the Las Cruces Police Department is pleased to work alongside federal and regional law enforcement agencies in trying to eliminate this illegal activity,” said Las Cruces Police Chief Richard Williams.
These cases are being prosecuted by Assistant U.S. Attorneys Sarah M. Davenport, Shaheen P. Torgoley and Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office. They were investigated by the FBI’s Las Cruces Cross-Border Drug Violence Hybrid Squad and the Southern New Mexico Gang Task Force, the U.S. Border Patrol, the New Mexico State Police, the Dona Doña County Sheriff’s Office, the Las Cruces- Doña Ana County Metro Narcotics Agency and the Las Cruces Police Department. The U.S. Marshals Service, the SWAT and other tactical units from the El Paso and Phoenix Divisions of the FBI and the New Mexico State Police assisted in today’s law enforcement operation.
SUMMARIES OF CRIMINAL COMPLAINTS
Criminal Complaint 13-MJ-1430 charges Jose Alvarez, 27, of Anthony, N.M., and Angel Herrera, 31, of Berino, N.M., with conspiracy to distribute heroin. If convicted, Alvarez and Herrera each face a maximum penalty of 20 years in prison. Alvarez was arrested today.
Criminal Complaint 13-MJ-1431 charges Angel Torres, 44, of Anthony, Texas, with conspiracy to distribute cocaine and distribution of cocaine. If convicted, Torres faces a mandatory minimum five years and a maximum of 40 years in prison. Torres was arrested today.
Criminal Complaint 13-MJ-1432 charges Rudy Portillo, 54, and Isaiah Portillo, 19, both of Anthony, N.M., and Victor Leos, 53, of Anthony, Texas, with conspiracy to distribute heroin. If convicted, Rudy Portillo, Isaiah Portillo and Leos each face a maximum penalty of 20 years in prison. Isaiah Portillo and Leos were arrested today. Rudy Portillo has yet to be arrested and is considered a fugitive.
Criminal Complaint 13-MJ-1433 charges Daniel Arrieta, 37, of Anthony, N.M., with conspiracy to distribute heroin. If convicted, Arrieta faces a maximum penalty of 20 years in prison. Arrieta has yet to be arrested and is considered a fugitive.
Criminal Complaint 13-MJ-1434 charges Noe Perez-Rodriguez, 46, of Berino, N.M., and Larry Valles, Sr., 50, of Los Lunas, N.M., with conspiracy to distribute methamphetamine, distribution of methamphetamine and distribution of cocaine. If convicted, Perez-Rodriguez and Valles each face a mandatory minimum five years and a maximum of 40 years in prison. Perez-Rodriguez also is charged with illegally entering into the United States after having been previously deported. If convicted of the immigration charge, Perez-Rodriguez faces a maximum of 20 years in prison. Perez-Rodriguez and Valles were arrested today.
Criminal Complaint 13-MJ-1435 charges Michael Vega, 25, and Raul Martinez, 25, both of Anthony, N.M., with conspiracy to distribute cocaine and distribution of cocaine. If convicted, Vega and Martinez each face a maximum penalty of 20 years in prison. Martinez was arrested today. Vega is in state custody on other charges and will be transferred to federal custody to face the charges in the complaint.
Criminal Complaint 13-MJ-1436 charges John Eric Sapien, 25, of Anthony, N.M., with distribution of cocaine. If convicted, Sapien faces a maximum penalty of 20 years in prison. Sapien is in state custody on other charges and will be transferred to federal custody to face the charges in the complaint.
Criminal Complaint 13-MJ-1437 charges Gerardo Garcia, 63, of Vado, N.M., and Jose Salcido, 51, of Anthony, N.M., with conspiracy to distribute cocaine and distribution of cocaine. If convicted, Garcia and Salcido each face a maximum penalty of 20 years in prison. Salcido was arrested today. Garcia has yet to be arrested and is considered a fugitive.
Criminal Complaint 13-MJ-1438 charges Abel Romero, 29, of Anthony, N.M., Benjamin Ochoa, 30, of Las Cruces, N.M., Victor Alvarez, 43, of Las Cruces, N.M., Victor Cano, 30, of Anthony, N.M., and Jaime Cano, 29, of Canutillo, Texas, with conspiracy to distribute cocaine and marijuana and distribution of cocaine and marijuana. If convicted, each of the five defendants faces a mandatory minimum five years and a maximum of 40 years in prison. The complaint also charges Romero with being a felon in possession of a firearm. If convicted of the firearm charge, Romero faces a maximum penalty of ten years in prison. Romero, Ochoa and Victor and Jaime Cano were arrested today. Alvarez has yet to be arrested and is considered a fugitive.
Criminal Complaint 13-MJ-1439 charges Eloy Rios-Montoya, 39, and Joey Martinez, 28, both of Anthony, Texas, and Sergio Cesar Reyes, 37, of Anthony, N.M., with conspiracy to distribute cocaine and distribution of cocaine. If convicted, Rios-Montoya, Reyes and Martinez each face a maximum penalty of 20 years in prison. Rios-Montoya, Martinez and Reyes were arrested today.
Criminal Complaint 13-MJ-1440 charges Javier Castruita, 45, Gloria Portillo Valdivia, 50, and Carlos Alberto Valdivia, 55, all of Anthony, N.M., with conspiracy to distribute cocaine and distribution of cocaine. If convicted, Castruita, Portillo Valdivia and Valdivia each face a maximum penalty of 20 years in prison. Castruita, Portillo Valdivia and Valdivia were arrested today.
Criminal Complaint 13-MJ-1441 charges Jesus M. Baeza-Lascano, 44, and Martin Nevarez, 49, both of Anthony, N.M., with conspiracy to distribute cocaine and distribution of cocaine. If convicted, Baeza-Lascano and Nevarez each face a maximum penalty of 20 years in prison. Baeza-Lascano was arrested today. Nevarez has yet to be arrested and is considered a fugitive.
Criminal Complaint 13-MJ-1559 charges Roberto Andres Urquidi, 33, of Canutillo, Texas, and Freddy Sanchez-Ramirez, 55 of Anthony, N.M., with conspiracy to distribute heroin. If convicted, Urquidi and Sanchez-Ramirez each face a maximum penalty of 20 years in prison. Urquidi and Sanchez-Ramirez were arrested today.
Charges in criminal complaints are merely accusations. All criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.Tokumba Miller Sentenced for Drug TraffickingRead the Press Release
TOKUMBA MILLER, age 35, a resident of Metairie, Louisiana, was sentenced by U. S. District Judge Helen G. Berrigan today to 120 months imprisonment for being part of a conspiracy to traffic in heroin, possession with intent to distribute heroin, and of possessing a firearm as a convicted felon, announced U. S Attorney Dana J. Boente. In addition to the term of imprisonment, Judge Berrigan imposed eight years of supervised release following the term of imprisonment. During the eight-year term the defendant will be under federal supervision and risks an additional term of imprisonment should he violate any terms of his supervised release.
On January 30, 2013, MILLER previously entered a guilty plea before Judge Berrigan admitting to making several sales of heroin to confidential sources assisting law enforcement, as well as making several deliveries of heroin to various individuals. Law enforcement later arrested MILLER in New Orleans after he appeared to conduct another heroin sale. They then searched his apartment in Metairie and found a small amount of heroin, cutting agents, drug paraphernalia, a machine press, ammunition, and a loaded .32 caliber handgun. Based on MILLER’s multiple prior felony convictions, which included convictions for drug offenses in state court, he was prohibited by Federal Law from possessing a firearm.
This case was investigated by Special Agents of the Federal Bureau of Investigation, New Orleans Police Department, and Jefferson Parish Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Kevin G. Boitmann.
Tampa Business Executives Indicted for Promoting Fraudulent Tax SchemeRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces the unsealing of an indictment charging Duane Crithfield (65) and Stephen Donaldson, Sr. (67) with one count of conspiracy to defraud the United States. If convicted, each faces a maximum penalty of five years in federal prison and a $250,000 fine.
According to the indictment, from 2001 and up to at least March 2008, Crithfield, Donaldson and others, through Foster & Dunhill, Offshore Trust Service, Fidelity Insurance Company ("FIC"), and Citadel Insurance Company ("CIC") promoted, marketed, and implemented a fraudulent offshore tax strategy known as the Business Protection Plan ("BPP"). The BPP strategy enabled Crithfield and Donaldson’s affluent clients to claim business expense deductions based on sham "insurance premium" payments made to offshore entities FIC and CIC, in amounts intended to substantially reduce the clients' taxable income for a particular year. The so-called insurance premiums were not based on actual business risks, but rather on the client's interest in reducing business income for tax purposes. After obtaining the benefit of a tax deduction on the client's corporate income tax return, the client would later receive approximately 83-85% of the premium back.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service Criminal Investigation. It will be prosecuted by Assistant United States Attorneys Jay G. Trezevant and Matthew J. Mueller.
(Download Factual Basis )
Statement of Manhattan U.S. Attorney Preet Bharara on the Convictions of Semen Domnitser, Oksana Romalis, and Luba Kramrish in Connection with Holocaust Claims Conference FraudRead the Press Release
“After half-a-day of deliberations, a jury convicted Semyon Domnitser – the highest ranking insider to participate in this unconscionable fraud against the Holocaust Claims Conference – and two co-conspirators who recruited applicants who received benefits to which they were not entitled. And with the verdicts against these three defendants, all 31 people who played roles in the theft of $57million dollars intended to benefit victims of the Nazi genocide – one of the darkest chapters in all human history – have been convicted. We said we would not stop until we brought to justice those who committed these unthinkable crimes and today our objective was accomplished.”
State of Alabama Employee Pleads Guilty to Providing Names in A Stolen Identity Refund Fraud SchemeRead the Press Release
Montgomery, Alabama - On May 7, 2013, Chequila Motley pleaded guilty to one count of conspiracy to file false claims and one count of aggravated identity theft for her role in an identity theft tax refund scheme, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama.
According to court documents, Motley was an employee of an Alabama state government agency and as part of her employment had access to databases containing personal identification information. In August 2011, Motley conspired with Veronica Temple and Yolanda Moses to provide them with means of identification for use in the filing of false tax returns in exchange for money.
Sentencing has not yet been scheduled. Motley faces between two and twelve years in prison, three years of supervised release, restitution, and a maximum fine of $750,000, or twice the loss caused by the offense. Veronica Temple and Yolanda Moses already pleaded guilty to various charges and each was sentenced to 57 months in prison.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial attorneys Jason H. Poole and Michael Boteler of the Justice Department’s Tax Division and Assistant United States Attorney Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617St. Paul Career Criminal Sentenced for Possessing A Sawed-off ShotgunRead the Press Release
MINNEAPOLIS—Yesterday in federal court in St. Paul, a 31-year-old career criminal from St. Paul was sentenced for possessing a 20-gauge sawed-off shotgun. On May 7, 2013, United States District Court Judge Susan Richard Nelson sentenced Michael Allen Smith to 180 months in prison on one count of being a career criminal in possession of a firearm and one count of possession of an unregistered firearm. Smith was indicted on July 17, 2012, and was convicted on December 14, 2012.
The evidence presented at Smith’s three-day trial proved that on April 28, 2012, he possessed an unregistered 20-gauge shotgun with a barrel length of less than 18 inches. Because he is a felon, Smith is prohibited under federal law from possessing firearms at any time. He was previously convicted of assault in the fourth degree in Washington County in both 2005 and 2006 and murder in the third degree in Ramsey County in 2001.
Since Smith’s prior offenses constitute crimes of violence, sentencing in the current federal case was subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in federal prison for anyone convicted in federal court of being a felon in possession of a firearm if that person also has at least three prior state or federal convictions for crimes of violence or serious drug crimes. Because the federal criminal justice system does not have parole, Smith will serve virtually the entire sentence imposed in this case behind bars.
This case was the result of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the Minneapolis Police Department. It was prosecuted by Assistant U.S. Attorney Richard Newberry.
The case was charged under Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. The Hennepin County Attorney’s Office then teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against almost two dozen serious habitual criminals through Project Exile Minneapolis.Scott Lee Hubeny Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on May 8, 2013, before U.S. District Judge Donald W. Molloy, SCOTT LEE HUBENY, a 48-year-old resident of Missoula, was sentenced to a term of:
Probation: 5 years
Special Assessment: $100
Restitution: $25,200
HUBENY was sentenced in connection with his guilty plea to theft of government money.
In an Offer of Proof filed by Assistant U.S. Attorney Timothy J. Racicot, the government stated it would have proved at trial the following:
HUBENY filed for disability benefits from the Social Security Administration ("SSA") on June 2, 1999. He was awarded monthly disability benefits beginning on January 20, 2000. As a beneficiary of SSA disability, HUBENY agreed to report employment or income changes that could affect his eligibility to receive SSA disability payments. At the time of the investigation in this case, HUBENY was receiving $1,400 per month in disability payments.
On April 4, 2011, the SSA received confidential information that HUBENY owned and operated a medical marijuana grow in Missoula and was growing marijuana both at his house and a rented warehouse. HUBENY became a medical marijuana provider under Montana law in August 2009.
On June 30, 2011, federal and state law enforcement officers searched HUBENY's house and his warehouse. They seized a total of approximately 243 marijuana plants, four pounds and 12 ounces of bulk marijuana, 5.06 ounces of Hashish, and various items of marijuana processing equipment (grow lights, digital scales, etc.).
HUBENY was interviewed the same day as the searches. HUBENY stated that he understood his SSA disability reporting requirements regarding changes in employment or income but denied earning any income in excess of $500 per year from his medical marijuana business. He said that he knew he was required to report his employment to SSA and provided no explanation for not doing so, saying only that he did not think about it because he was losing money.
HUBENY's bank records were reviewed which revealed that HUBENY deposited approximately $37,890 into his bank accounts from January 2010 through April 2011. That figure does not include HUBENY's monthly disability payments. Approximately $9,130 of that money came from 19 checks from Sharrott Creek Farms to HUBENY from January 14, 2010 through July 13, 2010. Sharrott Creek Farms is a business involved in growing and selling medical marijuana. When asked about Sharrott Creek Farms during his interview on June 30, 2011, HUBENY said he received two or three checks from that business for no more than $700 total.
HUBENY knowingly failed to disclose employment and income information to the SSA and, as a result, fraudulently received $25,200 in disability benefit payments between April 2010 and September 2011.
The investigation was conducted by the Social Security Administration - Office of Inspector General.
Rural Pisgah Man Sentenced on Firearm and Explosives ChargesRead the Press Release
COUNCIL BLUFFS, IA – On May 8, 2013, Rodney Lee Crosby, age 31, of rural Pisgah, Iowa, was sentenced in United States District Court in Council Bluffs on charges of felon in possession of a firearm and felon in possession of explosive devices, announced United States Attorney Nicholas A. Klinefeldt. United States District Court Judge John A. Jarvey sentenced Crosby to 46 months in prison on each charge, to be followed by 3 years of supervised release on each charge, with the imprisonment and supervised release on both charges to be served concurrently. Crosby was also ordered to pay a $10,000.00 fine. The Court also ordered Crosby to forfeit a Remington Arms, Model 870, 12 gauge shotgun; a Mossberg, Model 835 Ulti-Mag, 12 gauge shotgun; a savage, Model 116, 338 caliber rifle; a Remington Arms, Model 710, 30-06 caliber rifle; a Marlin Firearms, Model 39A, .22 caliber rifle; a Savage, Model 11, 243 caliber rifle; a Hipoint, Model 995, 9mm rifle; a Taurus .357 caliber revolver; 357 caliber ammunition; 30-06 caliber ammunition; .25 caliber ammunition; .22 caliber ammunition; 12 gauge shotgun shells; 16 gauge shotgun shells; and 9mm ammunition; all “improvised explosive bombs”, towit, containers, including “snuff cans” with metal lids, containing a per chlorate explosive mixture, and with functional pyrotechnic fuses, including among any others those seized from Crosby’s premises on July 2, 2011; and explosives, that is, commercial aerial display fireworks, including among others, cardboard tubing with plastic end plugs seized from Crosby’s premises on July 2, 2011. Crosby was also ordered to pay a $200.00 special assessment for the Crime Victim Fund. Crosby was taken into custody by the United States Marshal’s Service to be detained pending designation of the Federal Bureau of Prisons facility at which he will serve his sentence.
Crosby was sentenced upon his pleas of guilty to the two charges entered on September 6, 2012. The firearm and explosives charges against Crosby arose from a July 2, 2011, domestic disturbance call to Crosby’s residence. During the call, Harrison County Sheriff’s Deputies and Iowa State Patrolmen observed several firearms and ammunition in the residence. In a subsequent search of the premises, officers found additional firearms, ammunition, explosive devices and commercial aerial display fireworks. Crosby was prohibited from possessing these, having previously been convicted of felony fraud and theft charges.
During the search, the State of Iowa Fire Marshal and the Federal Bureau of Alcohol, Firearms, Tobacco and Explosives were called, and joined the investigation. During the investigation, Crosby gave a statement regarding the fireworks manufacturing operation in which he stated that he made and sold fireworks, and that he made substantial money from the sale of the fireworks. Some of the explosives were deemed potentially dangerous, and were promptly destroyed by law enforcement personnel on the premises in which they were found.
This investigation was conducted by the Harrison County Sheriff’s Department, the Iowa State Patrol, the State of Iowa Fire Marshal, and the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Red Lake Man Indicted for Distributing, Possessing Child PornographyRead the Press Release
MINNEAPOLIS—A federal indictment recently unsealed charges a 52-year-old Red Lake man with distributing and possessing images and videos containing child pornography. The indictment, which was filed on May 7, 2013, charges James Patrick Needham with one count of distribution of child pornography and one count of possession of child pornography. The indictment was unsealed prior to Needham’s initial appearance in federal court earlier today in Duluth.
The indictment alleges that on July 21, 2011, Needham possessed images and videos containing visual depictions of minors engaged in sexually explicit conduct. It also alleges that on August 4, 2010, Needham distributed several images of similar material. More than 1,300 images and 100 videos were found on a computer that was seized during the execution of a search warrant at Needham’s residence on July 21, 2011.
If convicted, Needham faces a potential maximum penalty of 20 years in federal prison for distribution of child pornography, with a mandatory minimum penalty of five years, and ten years in prison for possession of child pornography. Any sentences would be determined by a federal district court judge.This case is the result of an investigation by the Minnesota Child Exploitation Task Force, sponsored by the Federal Bureau of Investigation, with cooperation from the Red Lake Tribal Police Department. It is being prosecuted by Assistant United States Attorney Laura M. Provinzino.
Distribution and possession of child pornography is against the law. In addition to prosecuting these cases, the Justice Department is funding a study focused on the correlation between involvement in child pornography and hands-on sexual abuse of children. A 2008 study (The Butner Study) published in the Journal of Family Violence found that up to 80 percent of federal inmates incarcerated for possession, receipt, or distribution of child pornography also admitted to hands-on sexual abuse of children, ranging from touching to rape.
This case was brought as part of Project Safe Childhood (“PSC”), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney offices and the Justice Department’s Criminal Division, Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”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.
Red Lake Man Indicted for Assaulting Another with A MacheteRead the Press Release
MINNEAPOLIS—Recently in federal court in St. Paul, a 19-year-old Red Lake man was indicted for assaulting another with a machete while in Redby, a community on the Red Lake Indian Reservation. On May 6, 2013, Dale Clinton White, Jr., was specifically charged with one count of assault resulting in serious bodily harm.
According to a law enforcement affidavit filed in the case, police responded to a reported assault at a Redby residence at 4:00 p.m. on March 22, 2013. There, officers found a man in bed, unconscious, with extensive injuries to his head and arms. Documents on file with the court indicate that witnesses also reported that other people had been in the house prior to the arrival of police. Allegedly, the police then spotted one of those people, later identified as White, as he fled from a neighbor’s house, where he had left behind a machete. The victim suffered several fractures, multiple lacerations, soft tissue damage and hemorrhagic shock.
If convicted, White faces a potential maximum penalty of ten 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 Red Lake Tribal Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Clifford B. Wardlaw.
Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.
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.Prosecutions Continue in Illegal Entry Cases Involving Those with Prior Criminal RecordsRead the Press Release
MINNEAPOLIS -- In the District of Minnesota, court action continued this week in two separate cases regarding foreign nationals who entered the United States illegally after being deported as criminals. In each case, the individual was charged with one count of illegal re-entry after removal.
In the first case, U.S. District Court Judge Richard H. Kyle sentenced Milton Gonzalez, age 35, to 36 months in prison. Gonzalez was indicted on June 18, 2012, and pleaded guilty on July 24, 2012. In his plea agreement, Gonzalez admitted that on May 7, 2012, he was found in the U.S. after having been deported to Mexico in 2005, following a Wisconsin conviction for possession with intent to distribute amphetamine.
Most recently, Gonzalez was stopped for speeding by Prairie Island, Minnesota, tribal police and arrested on active warrants for possession and sale of counterfeit checks. He was in the Dakota County jail when he was identified as an illegal alien with a criminal record. That identification was made though the ICE’s Criminal Alien Program (“CAP”). The goal of that program is to locate criminal aliens incarcerated in federal and state prisons, as well as in local jails, and prevent them from being released into society by having them federally prosecuted for illegally re-entry. In some instances, federal prosecution occurs only after the individual has been prosecuted for the recent underlying offense.
This case was the result of an investigation by ICE’s Enforcement and Removal Operations (“ICE ERO”). It was prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw and Special Assistant U.S. Attorney Colin P. Johnson.
In the second case, on May 7, 2013, Noe Castro-Coj, age 41, pleaded guilty before U.S. District Court Chief Judge Michael J. Davis. He was indicted on March 11, 2013. In his plea agreement, Castro-Coj admitted that on February 5, 2013, he was found in the U.S. after having been deported to Guatemala in 2003, following a 2000 Kansas conviction for kidnapping. On February 5, 2013, Castro-Coj was arrested in Steele County for violating an order for protection. On February 7, 2013, ICE was notified that he was in jail.
For his crime, Castro-Coj faces a potential maximum penalty of 20 years. Judge Davis will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Steele County Sheriff’s Office and ICE ERO. It is being prosecuted by Assistant U.S. Attorney Andrew Dunne.
In some instances, federal prosecution occurs only after the individual has been prosecuted for the recent underlying offense. Both men will be deported after serving their federal sentences. To learn more about the CAP, visit www.ice.gov/criminal-alien-program/President of Car Dealership Sentenced to 40 Months for Money Laundering for the Gulf CartelRead the Press Release
Orlando, FL - United States District Judge Roy B. Dalton, Jr. sentenced Joel Torres (41, Apopka) to 40 months in federal prison for money laundering and failing to file IRS Forms 8300 (a report required for cash purchases over $10,000). A federal jury found Torres guilty On December 3, 2012.
According to court documents, Torres, the President of JM2 Auto Sales, Inc. in Apopka, laundered narcotics proceeds for the Gulf Cartel, a drug trafficking organization based in Mexico. Torres received cash, and then sent vehicles back to members of the Cartel in Texas. He also sold vehicles to local Cartel members. During this joint investigative effort, law enforcement seized more than 6,000 pounds of marijuana, more than 70 firearms - including assault weapons, bullet proof vests, and nearly $1 million.
Torres is the eleventh person convicted as a part of this investigation. Previously, Eladio Marroquin-Medina (30, Apopka), the vice-president at JM2 Auto Sales Inc., was sentenced to 72 months imprisonment for conspiracy to possess with the intent to distribute over 1,000 kilograms of marijuana and conspiracy to commit money laundering.
This case was investigated by the Internal Revenue Service Criminal Investigation, the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Apopka Police Department, the Orange County Sheriff’s Office, and the Osceola County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Christopher LaForgia and Shawn Napier.
Pittsburgh Felon Charged with Violating Federal Firearms LawsRead the Press Release
PITTSBURGH, Pa. - An Allegheny County man has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on May 7, named Roger Henderson, 29.
According to the indictment, on Oct. 6, 2012, Henderson, who has prior felony convictions, possessed a firearm. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm.
The law provides for a maximum total sentence of not less than 15 years and up to life in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric S. Rosen is prosecuting this case on behalf of the government.
This case is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pakistani Citizen Sentenced to 50 Months in Prison for Conspiracy to Provide Material Support to the Pakistani Taliban- Two Co-Defendants Previously Sentenced to 40 and 36 Months in Prison -Read the Press Release
WASHINGTON – A Pakistani citizen was sentenced today in the District of Columbia to 50 months in prison for conspiracy to provide material support to the Tehrik-e Taliban Pakistan (TTP), often referred to as the Pakistani Taliban, a designated foreign terrorist organization. Two co-defendants were sentenced for the same charge in December 2011 to 40 and 36 months in prison.
The sentences were announced by U.S. Attorney Ronald C. Machen Jr.; Assistant Attorney General for National Security Lisa Monaco; Assistant Attorney General Lanny A. Breuer of the Criminal Division; John Morton, Director of U.S. Immigration and Customs Enforcement (ICE), and John V. Gillies, Special Agent in Charge of the FBI Miami Division.
Irfan Ul Haq, 37, was sentenced today by U.S. District Judge John D. Bates. On Dec. 21, 2011, Judge Bates sentenced Qasim Ali, 32, to 40 months in prison, and Zahid Yousaf, 43, to 36 months in prison. On Sept. 12, 2011, each defendant pleaded guilty to one count of conspiracy to provide material support to a designated foreign terrorist organization. As part of their plea agreements, the defendants agreed to a stipulated order of removal to Pakistan upon the completion of their criminal sentences.
“Today’s sentence successfully brings to a close our prosecution of three criminals who aimed to use their human smuggling network to help a person who they believed to be a terrorist infiltrate our homeland,” said U.S. Attorney Machen. “By convicting three Pakistani nationals who were operating out of Ecuador, we have demonstrated our ability to dismantle human smuggling operations throughout the world when they threaten our national security.”
“This case underscores our continuing commitment to dismantle networks that facilitate terrorist travel,” said Assistant Attorney General Monaco. “I thank the many agents, analysts and prosecutors who were responsible for this successful prosecution.”
“Mr. Haq conspired with others to smuggle into the United States an individual who was believed to be a member of a foreign terrorist organization,” said Assistant Attorney General Breuer. “Such conduct presents a serious threat to our national security, and we will continue to work closely with our domestic and international law enforcement partners to prevent human smugglers from operating at home or abroad, and to punish them for their crimes.”
“ICE Homeland Security Investigations agents will continue to use every available resource to protect the American public from terrorist organizations and individuals who support them,” said ICE Director Morton. “Today’s sentence demonstrates our international resolve to ensuring that our nation is safer and more secure. I applaud the outstanding work conducted by our HSI attaché office in Ecuador who led this extensive investigation. I would also like to commend our HSI office in Atlanta, along with our law enforcement partners in the United States and Ecuador, who assisted us in this case.”
“Today’s sentence sends a clear message: Individuals such as Ul Haq, who operate outside the law to support terror represent a threat to our safety. Ul Haq and his co-conspirators sought to smuggle men into the US and did not care if they came here to ‘blow up’ something as long as they got paid. Ul Haq in turn provided material support to the TTP. Such would-be supporters of terror will be dealt with severely under our system of laws. I commend the FBI and everyone involved in the prosecution of this case for bringing him to justice,” said FBI Special Agent in Charge Gillies.
Ul Haq, Ali and Yousaf were arrested in Miami on March 13, 2011, on an indictment filed in the District of Columbia charging them with one count of conspiracy to commit alien smuggling. Based on the defendants’ guilty pleas to terrorism conspiracy charges, the government dismissed at the sentencing hearing today the charges of conspiracy to commit alien smuggling against the defendants.
Ul Haq, Ali and Yousaf admitted that between Jan. 3, 2011, and March 10, 2011, they conspired to provide material support to the TTP in the form of false documentation and identification, knowing that the TTP engages in terrorist activity and terrorism. According to court documents, Ul Haq, Ali and Yousaf conducted a human smuggling operation in Quito, Ecuador, that attempted to smuggle an individual they believed to be a member of the TTP from Pakistan into the United States. The TTP was designated as a foreign terrorist organization by the State Department on Sept. 1, 2010.
Court documents indicate that law enforcement agents directed confidential sources to ask the defendants, who were residing in Ecuador at the time, for their assistance in smuggling a fictitious person from Pakistan to the United States. Over the course of the ensuing negotiations, the defendants were made aware that the person to be smuggled was a member of the TTP who was blacklisted in Pakistan.
According to the court documents, the defendants agreed to move this person from Pakistan into the United States, despite his purported affiliation with the TTP. Ul Haq, according to the court documents, told the confidential sources that it was “not their concern” what the men “want to do in the United States – hard labor, sweep floor, wash dishes in a hotel, or blow up. That will be up to them.” The defendants accepted payment from the confidential sources for the smuggling operation and procured a false Pakistani passport for the purported TTP member.
The investigation was conducted by the HSI attaché office in Quito, Ecuador, with the HSI office in Atlanta, the Miami Division of the FBI and the Ecuadorian National Police.
The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
The Criminal Division’s Office of International Affairs, the U.S. National Central Bureau of INTERPOL, the U.S. Customs and Border Protection, the U.S. Embassy in Quito and the Government of Ecuador provided invaluable support.
The case was prosecuted jointly by prosecutors from the Human Rights and Special Prosecutions Section of the Criminal Division, the Counterterrorism Section of the National Security Division and the U.S. Attorney’s Office for the District of Columbia.
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Norwich Woman Sentenced to More Than Six Years in Federal Prison for Sex Trafficking of A MinorRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that DANA RIVERA, 23, of Norwich, was sentenced today by United States District Judge Robert N. Chatigny in Hartford to 78 months of imprisonment, followed by seven years of supervised release, for sex trafficking of a minor.
According to court documents and statements made in court, Dana Rivera and her former husband, Samuel Rivera, arranged for the prostitution of a 16-year-old girl. The Riveras posted advertisements on the Internet, took calls of prospective customers, booked hotel rooms, and transported the minor victim to and from prostitution calls in southeastern Connecticut, Rhode Island and New Hampshire. In May and June 2011, the minor victim saw approximately five or six customers a day. The Riveras split the money the victim earned and gave none of it to the victim.
Dana Rivera has been detained since her arrest on November 5, 2012. On February 14, 2013, she pleaded guilty to one count of conspiracy to commit sex trafficking.
Samuel Rivera, 23, of Groton, pleaded guilty to the same charge on February 19, 2013, and awaits sentencing. He has been detained since his arrest on November 16, 2012.
This matter has been investigated by the Federal Bureau of Investigation with the assistance of the Stonington Police Department. The case is being prosecuted by Assistant United States Attorney David E. Novick.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Northern California Real Estate Investor Indicted on Additional ChargeRead the Press Release
A federal grand jury in U.S. District Court for the Eastern District of California in Sacramento today returned a superseding indictment charging Andrew B. Katakis, of Danville, Calif., with obstruction of justice related to a federal investigation into conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions held in San Joaquin County, Calif., the Department of Justice announced.
The remaining allegations are unchanged from the original indictment, which was returned by a federal grand jury on Dec. 7, 2011. The pre-existing counts charge Katakis, Donald M. Parker, Anthony B. Joachim and W. Theodore Longley with conspiring with other unnamed co-conspirators to rig bids and commit mail fraud when purchasing selected properties at public real estate foreclosure auctions. Wiley C. Chandler, another real estate investor who was also charged in the original indictment, pleaded guilty on Feb. 24, 2012.
The added charge alleges that after Katakis received a letter notifying him that a federal grand jury had subpoenaed his bank account, he deleted and caused others to delete electronic records and documents related to the conspiracies. The superseding indictment alleges that Katakis also installed and caused others to install and use a software program that overwrote deleted electronic records and documents so that they could not be viewed or recovered.
“Obstruction of a grand jury investigation is a crime the Antitrust Division takes seriously,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice's Antitrust Division. “We will prosecute those who subvert the competitive process, as well as those who attempt to conceal their illegal actions by destroying evidence.”
According to the superseding indictment, Katakis, Parker, Joachim, Longley and co-conspirators agreed to suppress and restrain competition by rigging bids to obtain selected properties offered at public auctions in San Joaquin County. The conspirators also devised a scheme to fraudulently acquire titles to selected properties sold at the public auctions and to divert money to co-conspirators that would have gone to the beneficiaries. The indictment alleges that the conspiracy lasted from at least September 2008 until at least October 2009.
“This superseding indictment includes allegations that, in addition to the charges previously alleged, this defendant obstructed justice,” said Benjamin B. Wagner, U.S. Attorney for the Eastern District of California. “The new charge arises out of a long-running investigation that has already resulted in guilty pleas by numerous other defendants who participated in the scheme charged in this case.”
Katakis, Parker, Joachim and Longley are charged with bid rigging, a violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine. They are also charged with conspiracy to commit mail fraud, which carries a maximum sentence of 30 years in prison and a $1 million fine. The government can also seek to forfeit the proceeds earned from participating in the conspiracy to commit mail fraud. The newly added obstruction of justice charge against Katakis carries a maximum sentence of 20 years and a $250,000 fine.
To date, 10 individuals have pleaded guilty in U.S. District Court for the Eastern District of California in connection with the investigation: Anthony B. Ghio, John R. Vanzetti, Theodore B. Hutz, Richard W. Northcutt, Yama Marifat, Gregory L. Jackson, Walter Daniel Olmstead, Robert Rose, Kenneth Swanger and Chandler.
The additional charge today is the latest filed by the department in its ongoing federal antitrust investigation of fraud and bidding irregularities in certain real estate auctions in San Joaquin County. The investigation is being conducted by the Antitrust Division’s San Francisco office, the U.S. Attorney’s Office for the Eastern District of California, the FBI’s Sacramento Division, and the San Joaquin County District Attorney’s Office. Anyone with information concerning bid rigging or fraud related to real estate foreclosure auctions should contact the Antitrust Division’s San Francisco office at 415-436-6660, visit www.justice.gov/atr/contact/newcase.htm, contact the U.S. Attorney’s Office for the Eastern District of California at 916-554-2700 or contact the FBI’s Sacramento Division at 916-481-9110.
Today’s charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. 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.
New York Pimp Convicted in Maryland for Sex Trafficking and Gun CrimesRead the Press Release
Victims Were Sexually and Physically Assaulted, and Forced to Work as Prostitutes,
in Maryland, New York and ElsewhereBaltimore, Maryland - A federal jury today convicted Jeremy Naughton, a/k/a “Jerms Black,” age 32, of Brooklyn, New York, on charges related to sex trafficking, including transporting individuals to engage in prostitution, and using a gun during the conspiracy to commit sex trafficking.
The jury verdict was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief J. Thomas Manger of the Montgomery County Police Department.
“Jeremy Naughton held young women against their will, and used violence, sexual abuse and threats to compel them to work for him as prostitutes,” said U.S. Attorney Rod J. Rosenstein.
According to evidence presented at the 14-day trial, from January 2009 to the fall of 2010, Naughton and his long-time friend, Charles Anderson, targeted female prostitutes between the ages of 19 and 28 who were working without a pimp, to force and coerce the women to work for them. They contacted women who posted ads on websites for prostitution services and arranged to meet them in hotel rooms, masquerading as a prospective client. Naughton and Anderson then assaulted and threatened the victims with a handgun and/or physical violence to force them to work for them. They stole the women’s cell phones, identification, room keys and personal computers to prevent them from communicating with others, and controlled the victims through physical assault, humiliation, confinement and threats. Naughton transported the women between Maryland, New York and other states to engage in prostitution.
For example, in the summer of 2009, Naughton enticed a woman to come to an apartment in Brooklyn, where he imprisoned her and invited others to sexually abuse her. In September of 2009, Naughton forced open the door of a woman’s hotel room, stole her cell phone and identification, and detained her while demanding that she work for him as a prostitute. In October 2009 in his apartment, Naughton displayed a handgun, struck a woman, choked her and forced her to perform sex. Between October 25 and November 11, 2009, Naughton drove two women from his apartment to Oxon Hill where he demanded that they rent hotel rooms for commercial sex. In December of 2009, Naughton violently assaulted a woman in a hotel in Montgomery County, Maryland. On February 8, 2010, Naughton forced a woman from her hotel room in Silver Spring, Maryland, forced her to stay with him at the Brooklyn apartment and sexually abused her before attempting to prostitute her from a hotel in Long Island, New York. In June 2010, Naughton intimidated another woman by snapping the neck of her dog with his hands. In September of 2010, Naughton entered another victim’s hotel room, demanded that she work for him, stole her cell phone and money, and transported her to his apartment, where he forced her to perform oral sex.
Naughton shared his apartment in Brooklyn with Anderson. According to Anderson’s plea agreement, the victims stayed in the Naughton’s room, where Anderson sometimes overheard Naughton physically assaulting them and forcing them to perform sex acts. In the spring of 2010, Anderson agreed to monitor the victims while Naughton traveled for approximately six hours in search of an additional prostitute in Maryland. Anderson helped Naughton locate victims who had escaped. He also knew that Naughton had a .9mm pistol and a larger sub-machine gun in the apartment, along with corresponding ammunition.
Naughton faces a maximum sentence of life in prison for conspiring to commit sex trafficking; a minimum of 15 years and a maximum of life in prison for each of four counts of sex trafficking; a maximum of 10 years in prison on each of six counts of transporting an individual to engage in prostitution; seven years in prison, consecutive to any other sentence, for possession of a firearm in furtherance of a crime of violence. U.S. District Judge J. Frederick Motz has scheduled sentencing for August 15, 2013 at 9:30 a.m.
Charles Anderson, a/k/a “Chuck Corners,” a/k/a “Yowzer,” age 26, of Brooklyn, New York, previously pleaded guilty to conspiracy to commit sex trafficking and is scheduled to be sentenced on June 14, 2013 at 2:15 p.m.
The case was investigated by the Maryland Child Exploitation Task Force, with assistance from the Maryland Human Trafficking Task Force, which was formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members of both task forces include federal, state and local law enforcement. The Maryland Human Trafficking Task Force also includes victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit www.justice.gov/usao/md/Human-Trafficking/index.html.
United States Attorney Rod J. Rosenstein commended the FBI’s Baltimore, New York, and Las Vegas, Nevada offices and the Montgomery County Police Department for their work in the investigation and thanked the Montgomery County State’s Attorney’s Office, the Kings County (Brooklyn, NY) District Attorney’s Office, the Department of Homeland Security and the New York City Police Department for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Mark W. Crooks and Paul E. Budlow, who are prosecuting the case.
New York Man Charged with Trafficking in Counterfeit MerchandiseRead the Press Release
A New York man was charged wtih trafficking in counterfeit merchandise after investigators found him with more than 1,300 counterfeit items, including handbags, sunglasses and shirts, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Man Zhang, age 30, of Woodside, New York, was named in the one-count indictment.
On or about March 27, 2013, Zhang intentionally trafficked and attempted to traffic more than 1,300 items, including 225 designer handbags, 53 designer wallets, 71 pairs of designer sunglasses, 339 hats, 349 Monster and Ed Hardy tee-shirts, and 209 bottles of designer perfume, each of which contained counterfeit marks, logos, labels and tags, according to the indictment.
The marks on the merchandise were identical to and substantially indistinguishable from marks used on genuine merchandise, and were in use and registered for such goods on the principle register of the United States Patent and Trademark Office. The use of such counterfeit marks was likely to cause confusion, mistake or to deceive, according to the indictment.
According to a criminal complaint previously filed in this matter, Zhang’s vehicle was stopped in Austintown, Ohio, on March 27, 2013, for a traffic violation. Upon stopping the vehicle, police officers observed numerous items in plain view inside the vehicle which appeared to be counterfeit merchandise. Zhang was arrested on outstanding state warrants and the vehicle was impounded and inventoried.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation.
This case is being prosecuted by Assistant U.S. Attorney Robert W. Kern of the Cleveland U.S. Attorney’s Office, following an investigation by the Cleveland Office of the Department of Homeland Security, Office Immigration and Customs Enforcement.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Monte Vista Man Sentenced to Nine Years in Federal Prison for Receipt of Child PornographyRead the Press Release
DENVER – Timothy John Vanderwerff, age 65, of Monte Vista, Colorado, was recently sentenced by U.S. District Court Judge John L. Kane to serve 108 months (9 years) in federal prison for receipt of child pornography, U.S. Attorney John Walsh and FBI Denver Special Agent in Charge Thomas Ravenelle announced. Following his 9 year prison sentence, Vanderwerff was ordered by Judge Kane to serve a lifetime of supervised release. The judge deferred making a decision on restitution. A hearing regarding restitution will be scheduled at a later date. Vanderwerff, who appeared at the hearing free on bond, was ordered to report to a Bureau of Prisons facility within 30 days of designation.
Vanderwerff was indicted by a federal grand jury in Denver on February 8, 2012. He pled guilty to the receipt of child pornography on August 9, 2012. He was sentenced on Monday, May 6, 2013.
According to the stipulated facts contained in the plea agreement, in October 2009, law enforcement officials were contact by the defendant’s sister-in-law. She told law enforcement that the defendant’s wife had found thousands of images of child pornography on the defendant’s computer, as well as pictures of child pornography printed off the internet. The wife also believed the defendant had an improper infatuation with an 11-year old neighbor. After the initial call to law enforcement, officers and agents executed a state authorized search warrant. They seized Vanderweff’s computer and the printed images of child pornography. The defendant had obtained all of his child pornography from the internet.
The computer and hard drive were submitted to the Rocky Mountain Regional Computer Forensic Laboratory for examination. The forensic examination located more than 900 files containing images of child pornography on the computer. There were approximately 292 files containing images of child pornography with prepubescent minors. There were approximately 27 files containing images of child pornography involving sadistic or masochistic conduct. There were 2 video files showing child pornography involving prepubescent minors.
The child pornography images were sent to the National Center for Missing and Exploited Children (NCMEC) for review by the Child Victim Identification Program (CVIP). CVIP catalogues “known” child pornography images and “known” victims of child pornography, meaning those images have been previously identified by law enforcement. CVIP discovered 87 known image files of child pornography on the computer.
Simultaneous with the federal child pornography investigation, state law enforcement officers investigated allegations of improper sexual contact between the defendant and the 11-year old female neighbor. The defendant plead guilty and was convicted of the state charge of Sexual Assault on a Child - Victim Less Than 15 (years of age) in Rio Grande County, Colorado. The defendant received 90 days of jail followed by 10 years of sex offender specific probation.
“This case demonstrates the resources that law enforcement devotes to protecting children from exploitation,” said U.S. Attorney John Walsh. “The FBI’s efforts, the Regional Forensic Lab, and the National Center for Missing and Exploited Children work in concert with the U.S. Attorney’s Office to ensure those involved in child pornography are held accountable for their illegal actions.”
“The sentence handed down represents the FBI’s dedication to pursuing those intent on harming children,” said FBI Denver Special Agent in Charge Thomas Ravenelle. “The identification and apprehension of child predators roaming our communities is a priority for the FBI, and this case should serve as a deterrent to those who utilize the Internet to promote the victimization of children.”
This case was investigated by the Federal Bureau of Investigation (FBI).
Vanderwerff was prosecuted by Assistant U.S. Attorneys Richard Hosley and Judith Smith.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/ For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
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Minnesota Man Sentenced for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a Marshall, Minnesota man charged with Failure to Pay Legal Child Support was sentenced on May 3, 2013 by U.S. Magistrate Court Judge John E. Simko.
Larry T. Davis, age 38, was sentenced to 2 years of probation, a $10 special assessment to the Federal Crime Victims Fund, and child support restitution in the amount of $12,974.00.
Davis was indicted for failing to pay over $11,774.00 by a federal grand jury on December 4, 2012. On or about January 1, 2010, a past due child support obligation was imposed on Davis by the Third Judicial Circuit Court, Brookings County, South Dakota for the benefit of his minor child. The obligation went unpaid for more than one year and was in an amount greater than $5,000. At that time, the defendant was residing in Minnesota while his minor child resided in South Dakota. From that date and continuing to the present, Davis has willfully and unlawfully failed to pay this past due child support obligation. He pled guilty to the charge on April 12, 2013.
This case was investigated by the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Thomas J. Wright prosecuted the case.
Milwaukee Man Indicted on Sex Trafficking and Forced LaborRead the Press Release
The Department of Justice today announced that a federal grand jury sitting in Milwaukee has indicted Najee C. Moore, 22, on charges of conspiracy, sex trafficking and attempted forced labor, of both minor and adult victims.
The indictment alleges that Moore engaged in the sex trafficking of two different minor victims in 2010 and 2012, respectively, and used force, fraud, and coercion to compel both adult and minor victims to engage in commercial sex acts. The indictment further charges the defendant with conspiring and attempting to compel a victim into forced labor.
The matter is being investigated by the FBI, U.S. Immigrations and Customs Enforcement Homeland Security Investigations, Milwaukee Police Department and the Wisconsin Division of Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Karine Moreno-Taxman of the U.S. Attorney’s Office for the Eastern District of Wisconsin and Trial Attorney Daniel H. Weiss of the Department of Justice’s Civil Rights Division Human Trafficking Prosecution Unit.
An indictment is merely an accusation, and the subject is presumed innocent unless proven guilty.