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19 June 2013
Prosecutions Continue in Illegal Entry Cases Involving Those with Prior Criminal RecordsRead the Press Release
MINNEAPOLIS – In the District of Minnesota, separate charges have been filed against two Mexican nationals who allegedly entered the United States illegally after being deported as criminals.
The first indictment alleges that on May 1, 2013, authorities found Juan Manuel Contreras-Lepe, age 61, in the U.S. illegally after he had been previously deported to Mexico. His deportation followed a 1995 Florida conviction for felony aggravated battery. On May 1, 2013, authorities identified Contreras-Lepe, also known as Ezekiel Hernandez-Sandoval, as an alien with a criminal record after a traffic stop near his Willmar residence.
If convicted of the federal charge now levied against him, Contreras-Lepe faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by ICE’s Enforcement and Removal Operations (“ICE ERO”). It is being prosecuted by Assistant U.S. Attorney Deidre Y. Aanstad.The second indictment alleges that on May 7, 2013, authorities found Alfredo Rios-Guzman, age 35, illegally in the U.S. after he had been previously deported to Mexico. His deportation followed a 2007 Hennepin County conviction for assault in the second degree, involving a dangerous weapon. On May 7, 2013, after a traffic stop near his Bloomington residence, Rios-Guzman was identified as an alien with a criminal record.
If convicted of the federal charge now filed against him, Rios-Guzman faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the ICE ERO. It is being prosecuted by Assistant U.S. Attorney Sarah E. Hudleston.
In some instances, federal prosecution will occur only after the individual is prosecuted for the recent underlying offense. The men in these cases will remain in custody until their current federal cases are resolved.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.
Pittsburgh Man Sentenced to Six Years in Prison for Receiving Child PornographyRead the Press Release
PITTSBURGH, Pa. - A Pittsburgh man has been sentenced in federal court to 72 months imprisonment to be followed by 10 years of supervised release on his conviction of receipt of material involving exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Jared Montgomery, 29, of Pittsburgh, Pa.
According to information presented to the court, in the months leading up to April 26, 2012, Montgomery possessed and distributed visual depictions, namely, images and videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
Assistant United States Attorney Eric S. Rosen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Allegheny County District Attorney for the investigation leading to the successful prosecution of Jared Montgomery.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Owner of Telecommunications Companies Admits Role in International Phone Hacking ConspiracyRead the Press Release
Revenue share fraud cost companies millions in losses
NEWARK, N.J. – A German citizen today admitted his role in an international conspiracy that hacked into the telephone systems of large corporations and entities in the United States and around the world to make telephone calls, causing tens of millions of dollars in losses, U.S. Attorney Paul J. Fishman announced.
Wolfgang Uelpenich, 44, of Zug, Switzerland, pleaded guilty before U.S. District Judge Katharine Hayden in Newark federal court to an information charging him with conspiracy to commit wire fraud. Uelpenich was arrested by FBI agents at a Key West, Fla., on Jan. 9, 2012.According to documents filed in this case and statements made in court: Uelpenich, who owned telecommunications companies in Germany, conspired with others to profit by causing unauthorized telephone calls to be placed to Revenue Share Numbers (RSNs).
Also known as international premium numbers, RSNs offer such services as adult entertainment, chat lines, and psychic hotlines on a cost-per-minute basis. Telephone companies that carry calls to overseas RSNs (known as Revenue Share Providers [RSPs]) are typically paid an internationally-regulated fee for connecting such calls.
To increase profits by increasing call traffic, some RSPs and others illegally use stolen telephones to make unauthorized calls, generating additional revenue, which the RSPs shared with the people or entities (known as “dialers” or “callers”) making the unauthorized calls. A recent telecommunications industry association report estimated $3.84 billion annually in revenue share fraud.
The scheme involved the theft of long distance telephone service, either through the theft of cell phone service or through a process known as “PBX hacking.” Hackers targeted PBX (Private Branch Exchange) telephone systems of corporations and placed calls to those systems in an attempt to identify telephone extensions that are not in use. Once an unused extension was identified, hackers illegally reprogrammed the telephone system. The hacked telephone system could then be used by the hackers and others to make long distance telephone calls that are charged back to the victim corporation, creating virtually free telephone lines through which they could make calls. These “free” telephone lines were then used to call RSNs controlled by defendant Uelpenich and others.
Noor Aziz, 50, a fugitive last known to have resided in Pakistan, and others obtained access to hacked PBX systems or cell phones that had been activated with fraudulent information and used those phone lines to originate telephone calls to RSNs controlled by a conspirator and Uelpenich in Slovenia, Liechtenstein, Austria and elsewhere.
The RSNs that Uelpenich controlled and provided to Aziz frequently contained no actual content – they did not have adult entertainment or chat rooms – and could never generate legitimate fees for the RSPs. Telephone company representatives who suspected fraudulent activity on these phony RSNs found they frequently had recordings of fake rings, fake password prompts, fake voicemail messages, music, or dead air on continuous loops, all to make it appear they were legitimate sites.
As a result of the conspiracy, telephone companies and the hacked entities lost tens of millions of dollars due to more than 13 million minutes of telephone calls over 4,800 hacked PBX systems. Uelpenich’s conduct between 2010 and 2012 was responsible for approximately $1 million in losses. The case was charged in New Jersey, where AT&T has a major operating center in Somerset County and a fraud detection center in Middlesex County.
The count to which Uelpenich pleaded guilty is punishable by a maximum potential penalty of five years in prison and a fine of up to $250,000 or twice the gain or loss. Sentencing is scheduled for July 15, 2013.
U.S. Attorney Fishman credited the special agents of the FBI Newark Division, under the direction of Special Agent in Charge Aaron T. Ford, and special agents of the FBI Miami Division, under the direction of Special Agent in Charge Michael B. Steinbach, for the investigation leading to today’s guilty plea. The investigation, which relates to conduct ranging from November 2008 through January 2012, is ongoing.The government is represented by Assistant U.S. Attorney Erez Liebermann, Deputy Chief of the office’s Criminal Division.
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Defense Counsel: Alan Kaufman Esq., New York
Uelpenich, Wolfgang Information
Orleans Parish Sheriff’s Office Vendor, Richard P. Molenaar, Iii, Pleads Guilty to Conspiracy to Commit BriberyRead the Press Release
RICHARD P. MOLENAAR, III, 47, a resident of Las Cruces, New Mexico, pled guilty today in before U. S. District Judge Martin L.C. Feldman to one count of with conspiracy to commit bribery, announced U. S. Attorney Dana J. Boente.
According to court records, MOLENAAR was the owner of several maintenance/construction companies, including Ricky’s A/C, Inc., Landmark Mechanical Contractors, LLC, and Custom Carpentry Renovations, LLC. From in or around 2008 through in or around 2011, MOLENAAR used these companies to bid on maintenance jobs at the Orleans Parish Sheriff’s Office (“OPSO”). MOLENAAR’s primary point of contact at the OPSO was its former Director of Purchasing, John Sens (“Sens”). According to the factual basis, MOLENAAR, among others, including Sens, engaged in a rigged bidding process for various OPSO maintenance jobs. In particular, from 2007 through 2011, MOLENAAR would submit bids for OPSO work in the names of his respective companies but, with the knowledge and participation of, among others, Sens, he would also submit phony or fake bids for these same projects in the names of other local companies, in an effort to give the appearance of a competitive bidding process. In many cases, the phony bids would intentionally be higher than the bids from MOLENAAR and, consequently, Sens would award the work to MOLENAAR.
In exchange for this rigged bidding process, according to court documents, MOLENAAR provided Sens with various things of value. For example, from 2007 through 2011, MOLENAAR provided approximately $30,000 in cash to Sens, as well as the digging and installation of a pool at a residence owned by Sens, at no cost to him.
MOLENAAR faces a maximum penalty of five years imprisonment, three years supervised release, a $250,000 fine, and a $100 special assessment. Sentencing has been set for October 16, 2013, at 1:30 PM.
The case was being investigated by special agents of the Federal Bureau of Investigation. The case is being prosecuted by Assistant U. S. Attorneys Matt Chester and Jon Maestri.
(Download Factual Basis )
Oklahoma City Man to Serve Six Months in Prison for Making Threat to Commit Violence in WyomingRead the Press Release
Oklahoma City, Oklahoma – Today, GLENN ALLEN KIRKHAM, 34, of Oklahoma City, Oklahoma, was sentenced by United States District Judge Robin Cauthron to serve six months in prison for making a threat to commit violence in Casper, Wyoming, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
On January 14, 2013, public officials in and around Casper, Wyoming, received numerous reports from various sources of a threatened attack in Casper using multiple types of weapons. The threat had been posted from Oklahoma City on 4chan.org, an internet-based bulletin board service. The posting was quickly distributed throughout social media and caused significant concern in the community. The threat came not long after Casper had experienced a homicide/suicide at a local college. As a result of the threat, officials immediately took precautions that included placing 40 schools on lockdown, notifying hospitals and nursing homes, and placing police officers at potential locations of an attack.
Kirkham pled guilty on March 20, 2013. At today’s sentencing hearing, Judge Cauthron noted that even though the defendant had no criminal history and may have viewed the threat as some sort of joke, incarceration was important as a deterrent to those tempted to use the internet to cause wide-spread fear and disrupt public services.
This case is the result of an investigation by the Federal Bureau of Investigation and the Casper Police Department in Wyoming. The case was prosecuted by Assistant U.S. Attorneys Mark A. Yancey and Scott E. Williams.
North Braddock Man to Spend 10 Years in Prison for Participating in Heroin ConspiracyRead the Press Release
PITTSBURGH, Pa. - A suburban Pittsburgh man has been sentenced in federal court to 10 years imprisonment and three years supervised release on his conviction of conspiracy to distribute and possess with the intent to distribute heroin, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Russell Franklin, 26, of North Braddock, Pa.
According to information presented to the court, Franklin participated in a conspiracy to distribute and possess with the intent to distribute heroin between February 2011 and April 2011.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Monroeville Police Department for the investigation leading to the successful prosecution of Franklin.
Newark, N.J., Man Sentenced to More Than 16 Years in Prison for Illegal Firearm/drug PossessionRead the Press Release
CAMDEN, N.J. – A Newark, N.J., man who was convicted earlier this year on drug and weapons charges was sentenced today to 200 months in prison, U.S. Attorney Paul J. Fishman announced.
Jimmil Henderson, 30, was convicted by a federal jury on Jan. 29, 2013, on all three counts of a superseding indictment: possession of cocaine and marijuana with intent to distribute, possession of a firearm in furtherance of a drug trafficking offense and unlawful possession of a loaded handgun by a convicted felon. Henderson was convicted following a five-day trial before U.S. District Judge Joseph H. Rodriguez, who imposed the sentence today in Camden federal court.
According to documents filed in this case and the evidence at trial:
On Feb. 18, 2011, Newark Police Department officers were patrolling the area of Lincoln Park in Newark and saw Henderson engaging in a hand-to-hand drug transaction. Upon seeing the officers, Henderson ran through Lincoln Park, tossing a 9mm firearm loaded with 11 rounds of ammunition into the park. When the officers apprehended him at the corner of Broad and Pennington streets, they recovered quantities of cocaine and marijuana.
In addition to the prison term, Judge Rodriguez sentenced Henderson to five years of supervised release.
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge Thomas J. Cannon; and the Newark Police Department, under the direction of Police Director Samuel A. DeMaio and Chief Sheilah A. Coley, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Dara A. Govan and Special Assistant U.S. Attorney James Donnelly of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
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Defense counsel: Michael Huff Esq., PhiladelphiaNew York Landowner and New Jersey Solid Waste Company Sentenced for Illegally Dumping in Upstate, New YorkRead the Press Release
Cross Nicastro, Dominick Mazza, and his company, Mazza & Sons Inc., were sentenced today and yesterday in federal court in Utica, N.Y., for conspiring to violate the Clean Water Act, Superfund statute, and to defraud the United States by illegally dumping thousands of tons of asbestos-contaminated construction debris on a 28-acre piece of property on the Mohawk River in upstate New York. In addition, the Mazza defendants were also sentenced on charges of obstructing justice and making false statements to law enforcement.
U.S. District Judge David N. Hurd sentenced Dominick Mazza to 51 months in prison to be followed by three years of supervised release, to pay a $75,000 criminal fine and $492,000 in restitution. In addition, Judge Hurd sentenced Mazza & Sons Inc., to pay a $100,000 criminal fine and $494,000 in restitution and cleanup costs, and imposed five years corporate probation. The court also ordered that Mazza & Sons’ recycling facility fund and implement an environmental compliance plan to prevent future environmental violations at their Tinton Falls, N.J., operation. The compliance plan is to be administered by a third party auditor. On Tuesday, Cross Nicastro was sentenced to 33 months in prison and three years of supervised release and to pay $492,494 in restitution and a $25,000 criminal fine.
The defendants were convicted in October 2012 after a three week trial in Utica. According to the trial evidence, the defendants conspired to fill in the entire property over the course of five years with pulverized construction and demolition debris that was processed at New Jersey solid waste management facilities (to include Mazza & Sons Inc.) and then transported to Cross Nicastro’s property in Frankfort, N.Y. The plot was uncovered by law enforcement just months after the defendants began the operation, having already dumped at least 400 truckloads of debris at the site. Much of the material that was dumped was placed in and around waters of the United States and some of the material was found to be contaminated with asbestos. The conspirators then concealed the illegal dumping by fabricating a New York State Department of Environmental Conservation (DEC) permit and forged the name of a DEC official on the fraudulent permit.
“Mazza and his co-conspirators are being held justly accountable for egregious environmental crimes, for putting the public’s health at risk, and for lying to federal investigators,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “Had law enforcement not stopped their scheme, these conspirators could have dumped thousands of tractor trailer loads of debris in an area that contained wetlands. These laws are intended to protect the environment and the public’s health from exposure to toxic materials, and as this case clearly demonstrates, we will vigorously prosecute those who violate them.”
“The closure of this case demonstrates that illegal dumping and fraud are serious offenses that will not be tolerated in New York State,” said New York State Department of Environmental Conservation Commissioner Joe Martens. “DEC is proud of the collaborative work of our investigators to halt these illegal practices and bring the perpetrators to justice, and will continue to enforce state and federal laws that protect our environment and the health of New Yorkers.”
“The defendants illegally dumped thousands of tons of asbestos-contaminated construction debris in and around waterways in upstate New York,” said Cynthia Giles, Assistant Administrator of EPA’s Office of Enforcement and Compliance Assurance. “This case should serve as notice that EPA and its partner agencies will prosecute people who 'cut corners' by avoiding the costs of handling or disposing of asbestos properly.”
This case was investigated by Criminal Investigators with the New York State Environmental Conservation Police, Bureau of Environmental Crimes, Special Agents from the EPA's Criminal Investigation Division and the Internal Revenue Service, investigators from the New Jersey State Police Office of Business Integrity Unit, the New Jersey Department of Environmental Protection, and the Ohio Department of Environmental Protection The case is being prosecuted by Assistant U.S. Attorney Craig A. Benedict of the Northern District of New York, and Trial Attorneys Todd W. Gleason and Gary Donner of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.
New Haven Woman Sentenced to Three Years in Federal Prison for Distributing Crack CocaineRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that TIFFANY MARTINEZ, 24, of New Haven, was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to 36 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.
MARTINEZ is one of more than 100 individuals charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants and seizures of narcotics and firearms. During the course of the investigation, MARTINEZ sold crack cocaine out of a Fair Haven residence on behalf of a co-defendant.
MARTINEZ was arrested on June 5, 2012. On January 4, 2013, she pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute 28 grams or more of cocaine base (“crack”).
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant United States Attorneys S. Dave Vatti and Marc Silverman.
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(203) 821-3722 [email protected]Native Mob Member Sentenced for MurderRead the Press Release
MINNEAPOLIS— Late this afternoon in federal court, a member of the Native Mob street gang was sentenced to 516 months in federal prison for shooting and killing fellow gang member Jeremee Kraskey. United States District Court Judge John R. Tunheim sentenced Shaun Michael Martinez, also known as Tinez, on one count of murder resulting from carrying and using a firearm during and in relation to a crime of violence. Since the federal justice system does not utilize parole, Martinez will serve virtually his entire sentence behind bars.
On July 19, 2012, Martinez was charged with the crime by way of a superseding indictment. He pleaded guilty on December 21, 2012. In his plea agreement, Martinez admitted that on February 26, 2011, he killed Kraskey to prevent him from offering law enforcement information about the Native Mob’s criminal activities, which were, at the time, the subject of a multi-jurisdictional investigation. Martinez specifically admitted driving Kraskey to a residence in the 3500 block of 14th Avenue South in Minneapolis, where he shot Kraskey three times, fatally wounding him.
The Native Mob is a regional criminal gang that originated in Minneapolis in the early 1990s. Members routinely engage in drug trafficking, assault, robbery, and murder. Membership is estimated at 200, with new members, including juveniles, regularly recruited from communities with large, young, male, Native American populations. Association with the gang is often signified by wearing red and black clothing or sporting gang-related tattoos.
Martinez was part of a federal case filed against 25 members of the Native Mob, many of whom were charged with violating the federal Racketeering Influenced and Corrupt Organizations Act (“RICO”). That law prohibits conspiring to conduct illegal activity through a criminal enterprise—in this instance, the Native Mob—in an effort to preserve, protect, promote, and enhance the enterprise’s power, territory, and financial gains.
To that end, members of the Native Mob distributed illegal drugs, from crack cocaine to ecstasy. They also provided monetary support to members, including those incarcerated; shared with one another police reports, victim statements, and other case discovery; hindered or obstructed officials from identifying or apprehending those wanted by the law; and intimidated witnesses to gang crime. Moreover, they maintained and circulated firearms for gang use and committed acts of violence, including murder, against individuals associated with rival gangs.
This case was the result of a long-term, cross-jurisdictional investigation conducted by numerous local, state, federal, and tribal law enforcement officers dedicated to making Minnesota’s streets and communities safer. These agencies included representatives from the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; the U.S. Drug Enforcement Administration; the U.S. Bureau of Indian Affairs; the FBI-funded Headwaters Safe Trails Task Force; the Paul Bunyan Drug Task Force; the Minnesota Department of Corrections; the Minnesota Bureau of Criminal Apprehension; the Carlton County Sheriff’s Office; the Mille Lacs Tribal Police Department; the Bemidji Police Department; and the Minneapolis Police Department. These investigators were assisted by those from—in alphabetical order—the Becker County Sheriff’s Office, the Beltrami County Sheriff’s Office, the Carlton County Attorney’s Office, the Cass County Attorney’s Office, the Cass County Sheriff’s Office, the Crow Wing County Sheriff’s Office, the Douglas County Sheriff’s Office of Wisconsin, the Duluth Police Department, the Fon du Lac Tribal Police Department, the Fridley Police Department, the Itasca County Sheriff’s Department, the Hennepin County Attorney’s Office, the Hennepin County Sheriff’s Office, the Hubbard County Sheriff’s Office, the Leech Lake Tribal Police Department, the LCO Reservation Police Department, the Lower Sioux Tribal Police Department, the Mahnomen County Sheriff’s Office, the Minnesota State Patrol, the Mille Lacs County Attorney’s Office, the Mille Lacs County Sheriff’s Office, the New Brighton Police Department, the North Central Drug Task Force, the Prior Lake Police Department, the Red Lake Tribal Police Department, the Redwood County Sheriff’s Office, Richfield Police Department, the Sherburne County Sheriff’s Office, the St. Paul Police Department, the U.S. Marshals Service, the Minneapolis Violent Offender Task Force, the Washington County Sheriff’s Office, and the White Earth Tribal Police Department.
This case was prosecuted by Assistant U.S. Attorneys Andrew R. Winter and Steven L. Schleicher.Monett Man Charged with Armed Bank Robbery; Public's Help Sought to Locate FugitiveRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Monett, Mo., man has been charged in federal court with robbing a Great Southern Bank branch in Springfield at gunpoint.
Joseph K. Meierotto, 49, of Monett, was charged with bank robbery in a criminal complaint that was filed in the U.S. District Court in Springfield on Tuesday, June 18, 2013.
Federal authorities are seeking the public’s assistance in locating Meierotto, a fugitive from justice who has been identified through bank surveillance photos. Although he has been charged in the bank robbery, Meierotto has not been arrested. Anyone with information about his whereabouts is encouraged to contact the FBI at (417) 882-3303. Meierotto should be considered armed and dangerous.
According to an affidavit filed in support of the federal criminal complaint, Meierotto initially entered Great Southern Bank, 507 E. Kearney St., Springfield, at about 5 p.m. on Friday, June 14, 2013, under the pretense of conducting bank business. Meierotto left the bank and allegedly returned a short time later carrying a gun and demanding cash. Meierotto made his getaway in a vehicle which had previously been reported stolen from Barry County, Mo., the affidavit says. That vehicle has since been recovered. However, Meierotto remains at large.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the FBI.Mission Man Charged with Assault with A Dangerous Weapon and Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Francisco Maldonado, age 40, was indicted by a federal grand jury on June 12, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 19, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to 10 years in custody, a $250,000 fine, or both; life of supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation and Maldonado is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
Maldonado was remanded to the custody of the U.S. Marshals pending trial. A trial date has been set for August 13, 2013.
Minneapolis Felon Indicted for Possessing 4 FirearmsRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 47-year-old Minneapolis felon was indicted for possessing four firearms. Carl Craig Larson was specifically charged with one count of being a felon in possession of a firearm.
The indictment alleges that on April 21, 2013, Larson possessed a .357-caliber revolver, a seven-millimeter rifle, and two 12-gauge shotguns. Because he is a felon, Larson is prohibited under federal law from possessing a firearm at any time. Larson was previously convicted in Hennepin County for second-degree murder (1986), financial transaction card fraud (1997), and burglary (1999 and 2010). Because those convictions constituted crimes of violence, Larson will now be subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in federal prison for anyone with such a record who is subsequently convicted in federal court for being a felon in possession of a firearm or ammunition. Any sentence will be determined by a federal district court judge.This case is the result of an investigation by the LeSueur and Waseca county sheriff’s offices, and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorneys Julie E. Allyn and Sarah E. Hudleston.
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.
Milton Man Sentenced for Illegally Receiving Nearly $325,000 in Social Security PaymentsRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that Randy P. Courville, 53, of Milton, La., was sentenced by U.S. District Judge Elizabeth E. Foote to serve 37 months in prison and three years of supervised release for theft of government money. The judge also ordered Courville to pay $324,818 in restitution.
According to evidence presented at the guilty plea, Courville received Social Security disability payments from early 1995 until March 2012, even though he continuously worked as a self-employed painter. He owned his own business called R.T.’s Painting, which was later changed to Affordable Painting. Courville’s wife and three children also received benefits during this time. Courville was notified by the Social Security Administration (SSA) that if his medical condition improved and if he was able to go back to work, he was obligated to immediately notify the SSA. At no time between 1995 and 2012 did the defendant notify SSA that he was able to work or that he had completed any type of work. Courville pleaded guilty on Feb. 15, 2013.United States Attorney Finley stated, “There are many people who are disabled and need Social Security to make ends meet as they struggle to get back on their feet. This defendant was motivated by greed and made a conscious decision to lie about his ability to work. We will continue to prosecute these types of cases to the fullest extent of the law.”
The Social Security Administration-Office of Inspector General conducted the investigation. Assistant U.S. Attorney Kelly Uebinger prosecuted the case.Michigan Man Indicted by Federal Grand Jury on Illegal Firearm Possession ChargeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that a Michigan man was indicted on June 18 by a federal grand jury sitting in Huntington on illegal firearm possession charges. According to an indictment, Deandrew Fizer III, 23, of Romulus, Michigan, allegedly possessed a .45 caliber pistol on June 7, 2013, near Huntington, W.Va.
Fizer was previously convicted in June 2010 in the Third Judicial Circuit Court of Wayne County, Michigan of felonious assault. He did not have his rights to possess a firearm restored.
Fizer faces up to 10 years in prison if convicted.
The investigation was conducted by the ATF and the Huntington Police Department. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
The case is being brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Note: The charge contained in the indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
Click here to view a copy of the indictment
Miami-Dade Department of Public Works Employee Charged with Accepting Bribes from ContractorRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the filing of a criminal complaint charging defendant George Brown, 50, of Hollywood, FL, with accepting bribes in connection with programs receiving federal funds, in violation of Title 18, United States Code, Sections 666. Brown was arrested yesterday and is scheduled to appear in federal court tomorrow in Fort Lauderdale at 11:00 a.m. before Magistrate Judge Lurana S. Snow.
According to the criminal complaint, Brown was the Roadway Lighting Coordinator for the Department of Public Works (DPW) in Miami-Dade County. In this capacity, Brown was responsible for, among other things, overseeing the installation and/or maintenance of more than 45,000 street lights in the county’s roadway system. In 2011, a lighting contractor allegedly offered to provide Brown with “rewards” in exchange for the DPW’s purchase of the contractor’s lighting products. Brown agreed and subsequently accepted more than $13,000 in bribes from the contractor in 2011 and 2012. As detailed in the complaint, the bribes included appliances, computer equipment, and other merchandise, all paid for by the contractor. Among the merchandise that Brown received from the contractor was a 2.5 ton air conditioning unit, a Samsung stainless steel refrigerator, and a KitchenAid built-in single electric convection oven. The merchandise was either shipped directly to Brown’s home address or picked up by Brown at the contractor’s business in Miami, Florida.
During the investigation, the contractor began to cooperate with law enforcement and recorded the conversations with Brown. In one recorded conversation, Brown assured the contractor that no one else knew about their arrangement. In another recorded conversation, the two discussed delivery to Brown of certain merchandise costing approximately $2,600, in exchange for Brown’s assistance in getting the DPW to purchase more than $40,000 worth of lighting products from the contractor for a project on 27th Avenue in Miami, Florida.
If convicted of the charges in the criminal complaint, Brown faces a possible maximum statutory sentence of up to 10 years in prison.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
A complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Attachment:
Complaint (PDF)
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican Citizen Indicted for Illegal ReentryRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigration and Customs Enforcement, announced today that a 46-year-old year-old native and citizen of Mexico has been charged with Illegal Reentry into the United States.
According to United States Attorney Peter J. Smith, Jesus Briseno-Flores, age 46, a native and citizen of Mexico, in the United States illegally, was charged in a one-count indictment by a federal grand jury in Harrisburg today.
The indictment alleges that Briseno-Flores, an alien who was convicted on February 23, 2009, of Illegal Re-Entry into the United States by a Previously Deported Alien, was previously arrested and deported from the United States on March 3, 2009, did knowingly and unlawfully reenter the United States. He was located by federal immigration agents in Dauphin County, Pennsylvania.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. It is being prosecuted by Special Assistant United States Attorney Brian G. McDonnell.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is 10 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Men Sentenced for Possession of Fake Credit CardsRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that Jose Antonio Abreu-Arbolaez, 38, of Cuba, and Yoany Quesada-Romero, 29, of Tampa, Fla., were sentenced by U.S. District Judge Elizabeth E. Foote to each serve 10 months in prison and one year of supervised release for conspiracy to possess more than 15 counterfeit credit cards.
Documents filed into the court record during the guilty plea state that while traveling from Florida to Louisiana on Sept. 26, 2012 to Sept. 28, 2012, Abreu-Arbolaez and Quesada-Romero used counterfeit credit cards to purchase Wal-Mart gift cards. On Sept. 28, 2012, security at a Lafayette Wal-Mart contacted authorities and advised them that Abreu-Arbolaez and Quesada-Romero were using stolen or counterfeit credit cards to purchase Wal-Mart gift cards in and around the Lafayette area.Both were arrested Sept. 28, 2012, in the parking lot of Wal-Mart on West Pinhook Road in Lafayette. During a search of their minivan, 34 counterfeit credit cards displaying Abreu-Arbolaez’s name and 17 fake cards displaying Quesada-Romero’s name were found. The magnetic strips on the back of the counterfeit cards contained information related to real financial institutions that were improperly charged $9,729 for the Wal-Mart gift cards purchased by the defendants. The defendants pleaded guilty March 14, 2013.
“These defendants defrauded private citizens, financial institutions, and a retail business,” Finley said. “We will prosecute anyone who illegally uses other people’s credit to enrich themselves. I want to thank the company’s security personnel and the agencies involved for assisting in bringing the defendants to justice.”
The U.S. Secret Service and the Lafayette Police Department conducted the investigation. Assistant U.S. Attorney Howard C. Parker prosecuted the case.
Marion, Virginia Police Chief Arrested on Federal Drug ChargeRead the Press Release
ABINDGON, VIRGINIA -- The Police Chief of the Marion, Va., Police Department was arrested this morning on federal charges related to the distribution of a controlled substance.
Michael Dean Roberts, a.k.a. “Fireball,” age 54, of Saltville, Va., was arrested via a federal criminal complaint earlier this morning and charged with one count of distribution of a controlled substance.
According to a probable cause affidavit filed with the United States District Court for the Western District of Virginia in Abingdon, Roberts is charged with distributing the name brand prescription pain killer Lortab, which contained the schedule III narcotic hydrocodone.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Drug Enforcement Administration, the Virginia State Police and the Washington County Sheriff’s Office. Assistant United States Attorney Zachary Lee will prosecute the case for the United States.
A criminal complaint is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Marietta Woman Sentenced to Prison for Social Security FraudRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Patricia Hodges, 66, of Marietta, Ohio has been ordered to repay $141,962 in Social Security benefits she collected on behalf of her dead mother, serve 30 days in prison and six months of home confinement as part of a three-year period of court supervision.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, and Elias Papoulias, Resident Agent in Charge, Social Security Administration Office of Inspector General, announced the sentence imposed today by Senior U.S. District Judge George C. Smith.
Hodges pleaded guilty on February 27, 2013 to one count of theft of government money. According to testimony at the plea hearing by an agent with the Social Security Inspector General, a Social Security Administration official interviewed Hodges at her Marietta home in November 2011. Hodges’ mother would have been 103 at the time and the official wanted proof that Hodges’ mother was still alive. Hodges claimed her mother was on a cruise and planned to live with a niece in New York after the cruise.
Further investigation by the Social Security Administration and Marietta Police concluded that Hodges’ mother had died in 1997 and that Hodges had buried her mother’s body in the back yard of a house in Lake Worth, Florida where they had lived. Florida law enforcement investigators recovered the skeletal remains of Hodges’ mother.
Hodges admitted that she concealed her mother’s death in order to collect $141,962 in Social Security benefits she was not entitled to receive between 1997 and October 2011.
Individuals who want to report suspected cases of fraud can contact the Social Security Office of Inspector General’s Fraud Hotline, 1-800-269-0271, or complete an online fraud reporting form at http://oig.ssa.gov/report.
Stewart commended the investigation by the Social Security Administration’s Office of Inspector General and the Marietta Police, and Assistant U.S. Attorney Dale E. Williams Jr., who represented the United States in the case.
Man Sentenced to 37 Months Imprisonment for Assault on Yakama ReservationRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Jerrel Lee Charles, age 21, was sentenced today for committing an Assault Resulting in Serious Bodily Injury, a crime to which he pleaded guilty in March, 2013. Senior District Court Judge Edward F. Shea sentenced the Charles to a thirty-seven (37) month term of imprisonment, to be followed by a three (3) year term of court supervision following his release from Federal prison. Judge Shea also ordered that Charles complete a mental health evaluation and follow any treatment recommendations of the evaluation professional.
According to information disclosed during the court proceedings, on October 13, 2012, Charles and his girlfriend had an argument at their residence located on the Yakama Reservation, which argument escalated into a physical confrontation. An acquaintance of the couple decided to intervene. The acquaintance retrieved a firearm, struck Charles, and began firing rounds into the air. The acquaintance and the victim then left the residence, entered a vehicle, and began to depart the area. Charles obtained a rifle and fired a shot at the vehicle. The victim was struck by a round fired by Charles. The victim was subsequently transported to the hospital. The Yakama Nation Tribal Police Department and the Federal Bureau of Investigation immediately began an investigation. After discovering what had happened, the law enforcement officers obtained a search warrant for the Charles' residence and the rifle was found in his bedroom. After being advised of his Miranda warnings, Charles admitted he had shot the round that struck the victim. As explained during the court proceedings, Charles has a history of psychiatric hospitalizations.
Michael C. Ormsby said, "The Defendant endangered the lives of innocent people by discharging a firearm in the manner in which he did. The victim in this case is lucky to be alive. This type of conduct will absolutely not be tolerated in the Eastern District of Washington. I commend the Yakama Nation Tribal Police Department and the Federal Bureau of Investigation for their efficient and successful investigative efforts in this case."
This investigation was conducted by the Yakama Nation Tribal Police Department and the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Tom Hanlon.
12-CR-02083-EFS
Man Indicted for Cleveland Bank RobberyRead the Press Release
A grand jury returned a one-count indictment charging Roland Jerome Lamarr, 59, with bank robbery, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Lamarr robbed Charter One Bank located at 1215 Superior Avenue, Cleveland, Ohio, on May 2, 2013.
The case is being prosecuted by Assistant U.S. Attorney Justin Seabury Gould, following investigation by agents of the Federal Bureau of Investigation, and members of the Cleveland Division of Police.
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. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
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.
Luis Baena-olivares Sentenced for Illegal ReentryRead the Press Release
LUIS BAENA-OLIVARES, age 52, a citizen of Mexico, was sentenced yesterday in federal court by U.S. District Judge Jay C. Zainey to 37 months imprisonment, announced U. S. Attorney Dana J. Boente. In addition to the term of imprisonment, Judge Zainey ordered that BAENA be placed on three years of supervised release following the term of imprisonment, during which time the defendant will be under federal supervision and risks an additional term of imprisonment should he violate any terms of supervised release.
According to court documents, on March 14, 2013, BAENA pled guilty to a one-count indictment admitting he was an alien who was previously removed and was knowingly and unlawfully found in the United States, in Jefferson Parish, Louisiana on December 18, 2012, without the Attorney General or Secretary of the Department of Homeland Security, having expressly consented to his re-application for admission into the United States. BAENA’s sentence was subject to enhancement based on a previous aggravated felony conviction.
This case was investigated by United States Immigration and Customs Enforcement - Enforcement and Removal Operations and the Jefferson Parish Sheriff’s Office. The case was prosecuted by Special Assistant United States Attorney Robert Weir.
Krista Little Head Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on June 19, 2013, before U.S. District Judge Sam E. Haddon, KRISTA LITTLE HEAD, a 28-year-old former resident of Billings, was sentenced to a term of:
Prison: 125 months
Special Assessment: $100
Supervised Release: 4 years
LITTLE HEAD was sentenced in connection with his guilty plea to conspiracy to possess with intent to distribute methamphetamine.
The government stated it would have proved at trial the following:
On December 8, 2011, members of the Big Sky Safe Streets Task Force (BSSSTF) along with members of the Eastern Montana High Intensity Drug Trafficking Area (EMHIDTA) conducted a controlled drug purchase using a confidential informant (CI). The CI stated LITTLE HEAD could purchase one (1) ounce of methamphetamine for $2,300 from a Hispanic male who goes by the name "Ramiro." The CI arranged to meet LITTLE HEAD at a casino in downtown Billings. The CI met LITTLE HEAD and then both met with "Ramiro" inside the casino. All subjects left the casino and got into a vehicle driven by LITTLE HEAD, traveled a short distance, and met with another subject who was the source. The source was driving a Jeep. The CI said "Ramiro" got out of LITTLE HEAD's vehicle and into the Jeep. "Ramiro" returned to LITTLE HEAD's vehicle and placed a plastic baggie that contained the methamphetamine inside, and said, "all there, it's all weighed." The CI handed "Ramiro" $2,300 for the drugs and they parted ways. The methamphetamine's actual weight was 26.4 grams and 63.8% purity.
On December 9, 2011, another deal was set up using the same CI. LITTLE HEAD agreed to sell the CI one (1) ounce of methamphetamine for $2,300. It was also agreed LITTLE HEAD would receive $100 for "middling" the deal. The CI met LITTLE HEAD at a different casino in Billings. The CI got into LITTLE HEAD's vehicle and they drove to the another casino where they met with "Ramiro." The money was exchanged for the one ounce of methamphetamine and they parted ways. The methamphetamine's actual weight was 27.7 grams and 61.4% purity.
Agents identified "Ramiro" as Ismael Zamora and he has subsequently been prosecuted. When questioned, LITTLE HEAD admitted her role in the conspiracy and distributions, indicating that she met Zamora in November 2011, and helped him distribute methamphetamine in Billings and elsewhere. She admitted to the two distributions to the CI, and also said that she sold smaller amounts of methamphetamine for him as well, usually $100 deals on 6-10 occasions, and delivered methamphetamine from Zamora to another person three times for $700, $400 and $200. LITTLE HEAD's dealings with Zamora ended in January 2012 because she owed him money for methamphetamine and was not able to pay.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that LITTLE HEAD will likely serve all of the time imposed by the court. In the federal system, LITTLE HEAD does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the Billings Big Sky Safe Streets Task Force.
Knoxville Resident Sentenced to 20 Years for Using Bomb During Bank RobberyRead the Press Release
KNOXVILLE, Tenn. – Gordon Harold Williams, 49, of Knoxville, Tenn., was sentenced on June 19, 2013, to serve 20 years in prison, by the Honorable Thomas Varlan, U.S. District Court Chief Judge. Upon his release from prison, Williams will serve five years of supervised release. He was also ordered to pay restitution in the amount of $1546.00.
Williams pleaded guilty in July 2012 to the robbery of a BB&T Bank in Knoxville, Tenn., in which Williams threatened bank tellers with a homemade bomb in a backpack.
According to a plea agreement on file with the U.S. District Court Clerk in support of the guilty plea, Williams confessed to having an explosive device in a backpack during the robbery. The device contained bottles of liquid accelerant, gun powder, bird shot and metal screws, which was designed to be detonated with additional liquid accelerant and a lighter. Williams obtained $1546.00 from two bank tellers during the robbery.
Further investigation shortly after the robbery by Federal Bureau of Investigation Safe Streets Task Force (FBI SSTF) and Knox County Sheriff’s Office (KCSO) Major Crimes Unit led to an improvised explosive device located at a Fountain City address. Knoxville Police Department Bomb Squad and Knoxville Fire Department HAZMAT both responded to the scene and recovered the explosive device. The device was sent to the FBI laboratory in Quantico, Va.
“These federal and local agencies collectively and effectively caused this individual to receive a serious sentence for a violent crime with multiple victims and the potential to cause great harm. We thank them for their efforts that keep us safe. With no parole in the federal system, Williams will serve this time, as he should. Others should note the consequences of these actions,” said U. S. Attorney Bill Killian
This matter was a joint investigation of the FBI SSTF and the KCSO Major Crimes Unit. Assistant U.S. Attorney David Lewen, Jr. represented the United States.
Keyser Resident Sentenced to More Than 7 Years Imprisonment on Drug ChargesRead 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
Five others appear for Pleas and Sentencings
MARTINSBURG, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II announced that the following individuals recently appeared in Federal Court in Martinsburg.
CHARLES PAGE HAINES, III, age 51, of Keyser, West Virginia, was sentenced to 92 months imprisonment to be followed by six years of supervised release. HAINES was convicted on March 13, 2013, after a two-day trial on one count of “Conspiracy to Distribute Cocaine Base” from June 5 to June 28, 2012; four counts of “Distribution of Cocaine Base” on June 5, June 6 and twice on June 7, 2012; and one count of “Maintaining a Drug-Involved Premise” from June 5 to June 28, 2012, all in Keyser, Mineral County, West Virginia. Trial evidence indicated that HAINES was involved with co-defendants Loren Constantine Brown and Crystal Starr Metz in a conspiracy to distribute cocaine base and provided his residence as a place from which the crack was distributed. HAINES was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Assistant United States Attorney Zelda E. Wesley and former Assistant United States Attorney Thomas O. Mucklow and investigated by the Potomac Highlands Drug and Violent Crimes Task Force, consisting of officers from the Federal Bureau of Investigation, and the West Virginia State Police - Bureau of Criminal Investigations.
BRANDON LEE SPAUR, age 26, of Martinsburg, was sentenced to 18 months imprisonment to be followed by two years of supervised release pursuant to his earlier entered a plea of guilty to “Possession of a Firearm by a Convicted Felon.” SPAUR was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, and the Berkeley County Sheriff’s Department.
RICARDO DIAZ, age 40, of Inwood, West Virginia, entered a plea of guilty to “Possessing Forged and False Identity Documents” on May 8, 2013, in Inwood. DIAZ, who is in custody pending sentencing, faces up to 10 years imprisonment and a $250,000 fine. This case was investigated by US Immigration and Customs Enforcement, Homeland Security Investigations (ICE/HSI).
KEIRA LEE WIDDOWS, age 31, of Hagerstown, Maryland, entered a plea of guilty to “Making a False Statement in the Acquisition of a Firearm.” WIDDOWS, who is free on bond pending sentencing, faces up to 10 years imprisonment and a $250,000 fine. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
These three cases were prosecuted by Assistant United States Attorney Paul T. Camilletti.
JASON SWISHER, age 30, and JENNIFER N. HILEMAN, age 29, of Bunker Hill, West Virginia, entered pleas of guilty to “Conspiracy to Distribute Heroin.” SWISHER and HILEMAN, who are free on bond pending sentencing, face up to 20 years imprisonment and a $1,000,000 fine. This case was prosecuted by Assistant United States Attorney Robert H. McWilliams, Jr. and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Kerry Lynn Van Haele Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on June 19, 2013, before Senior U.S. District Judge Jack D. Shanstrom, KERRY LYNN VAN HAELE, a 29-year-old resident of Billings, was sentenced to a term of:
Prison: 46 months
Special Assessment: $100
Supervised Release: 4 years
VAN HAELE was sentenced in connection with his guilty plea to conspiracy to possess with the intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
In January 2010, agents began investigating a methamphetamine distribution cell out of Las Vegas, Nevada, that was involved in the trafficking of high-purity methamphetamine to Billings. Throughout the course of the investigation, agents learned the identities of members in the criminal organization and began conducting interviews with them.
Agents were advised by numerous sources connected to the distribution of methamphetamine that VAN HAELE was one of the subjects obtaining methamphetamine from "X.X." and his organization, and that she was involved in the re-distribution of the drug. These activities took place on or about May 2010 until September 2010, and occurred within the State of Montana.
Co-conspirators with knowledge of VAN HAELE's activities advised that VAN HAELE allowed at least one package containing methamphetamine to be delivered to her residence. The methamphetamine was then re-distributed.
VAN HAELE admitted to obtaining between one (1) and two (2) pounds of methamphetamine from "X.X." during approximately May 2010 and September 2010. VAN HAELE admitted to re-distributing the methamphetamine she obtained.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that VAN HAELE will likely serve all of the time imposed by the court. In the federal system, VAN HAELE does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Billings Big Sky Safe Streets Task Force, the Drug Enforcement Administration, and the U.S. Department of Homeland Security - Homeland Security Investigations.
International Sports Gambling Ring Charged with Racketeering and ExtortionRead the Press Release
United States Attorney Laura E. Duffy and Federal Bureau of Investigation Special Agent in Charge Daphne Hearn announced that 18 members of a violent gambling ring located principally in California and Peru were indicted for operating “Macho Sports”—an illegal Internet and telephone gambling business.
Participants in the scheme were charged with taking millions of dollars in illegal sports wagers over the last decade in the San Diego and Los Angeles areas. Earlier today, FBI agents arrested 15 of the defendants on a sealed indictment in coordinated actions in San Diego and Los Angeles, as well as Oslo, Norway, and Lima, Peru. FBI agents also executed seizure warrants seeking the forfeiture of more than $5 million in property associated with Macho Sports, including a La Jolla property obtained by conspirators with proceeds from the illegal gambling conspiracy. The FBI investigation, which started in 2011, employed wiretaps and undercover agents to infiltrate the organization and uncover the defendants’ illegal gambling activities and extortionate debt collection.
According to the indictment, Jan Harald Portocarrero and Erik Portocarrero ran Macho Sports from Lima, Peru, using the Internet and toll-free telephone lines to accept bets from customers in California. The organization ensured the prompt payment of gambling debts through the use of intimidation, threats, and violence, as well as fostering a violent reputation as to its treatment of delinquent customers. The co-conspirators avoided detection by laundering their illegal proceeds and maintaining a company headquarters and the physical platform for its Internet operations outside the United States. Although originally from California, the Portocarrero brothers set up Macho Sports in Peru after suffering previous gambling arrests or convictions in the United States.
The Portocarreros employed managers in Peru, such as defendant Young Hee Koh, to oversee the enterprise’s telephone and internet operations, resolve disputes, and adjust customers’ lines of credit. The organization also used teams of bookies—such as Amir Mokayef (operating primarily in the San Diego area) and Joseph Barrios (operating primarily in the Los Angeles area)—who were responsible for recruiting customers, paying off winning bets, and collecting on losing bets.
Macho Sports’ bookies often managed their own network of “sub-bookies,” who both recruited customers and delivered payments to the managing bookie. For example, San Diego- -area bookie Mokayef managed the sub-bookies Michael Christopher Iaco, Howard Alan Blum, Michael John Massey, Salvatore Giacomo Groppo, Nilesh Kumar Ambubhai Patel, and Benjamin John William Weber. Los Angeles-area bookie Barrios managed the sub-bookies Charles Edward Sullivan, Emed G. Sidaros, aka Action Ed, Isaac Pete Gharibeh, Dunzmy June Nguyen, and Todd Michael Heflin.
Macho Sports supplied their customers with an account number and password for accessing their gambling accounts on its websites. Bookies instructed their customers that they could place bets with their bookmaker, or by calling Macho Sports’ toll-free numbers, or through their online accounts on the Macho Sports websites. Typically, Macho Sports would extend credit to new customers, so they could begin sports betting without pre-funding their accounts. Macho Sports also provided further extensions of credit to existing customers, so that those customers could wager larger amounts of money than their prior extensions of credit allowed.
The enterprise also used “runners,” such as Randall Lee Irwin and Larry Neil Gold, who dealt directly with customers on behalf of its various bookies. These runners handled customer payments and collections. To ensure prompt payment, Macho Sports fostered a violent reputation about its treatment of delinquent customers. To this end, and because Macho Sports could not rely on the legal system for debt collection, the enterprise used intimidation, threats, and violence against its customers, especially when customers were late in paying their gambling debts.
United States Attorney Duffy observed that billions of dollars are being made outside the law now that technology has made illegal gambling more accessible: “Illegal gambling is a thriving illegal business hiding in plain sight. The Department is committed to combating this crime, which too often is characterized by organized criminals, shady bookies, serious violence and lives in shambles because of gambling addiction.”
Some defendants are expected to be arraigned on the indictment this afternoon before U.S. Magistrate Judge William McCurine, Jr.
DEFENDANTS Case Number: 13CR2196-JLS Jan Harald Portocarrero
Erik Portocarrero
Amir Mokayef
Joseph Barrios
Young Hee Koh
Randall Lee Irwin
Larry Neil Gold
Charles Edward Sullivan
Michael Christopher Iaco
Emed G. Sidaros
Isaac Pete Gharibeh
Dunzmy June Nguyen
Todd Michael Heflin
Howard Alan Blum
Michael John Massey
Salvatore Giacomo Groppo
Nilesh Kumar Ambubhai Patel
Benjamin John William Weber CORPORATE DEFENDANT Macho Sports International Corp. Panama and Peru SUMMARY OF CHARGESCount 1: Racketeering Conspiracy to Conduct Enterprise Affairs (RICO Conspiracy), in violation of Title 18, United States Code, Sections 1962(c)&(d)
Maximum penalties: 20 years in prison, 3 years supervised release; and a $250,000 fine
Count 2: Illegal Gambling Business, in violation of Title 18, United States Code, Section 1955
INVESTIGATING AGENCIES
Maximum penalties: 5 years in prison, 3 years supervised release; and a $250,000 fineFederal Bureau of Investigation
Internal Revenue Service – Criminal InvestigationAn indictment itself is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Insider Theft of over $150,000 from Indian Casino Results in Criminal Embezzlement and Tax Charges Against Chickasha CoupleRead the Press Release
Oklahoma City, Oklahoma – KIMBERLY DAWN LOGSDON and WILLIAM MICHAEL LOGSDON, both of Chickasha, Oklahoma, have been indicted by a federal grand jury in connection with the embezzlement of over $150,000 from the Silver Buffalo Casino and failure to file federal tax returns, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
The Silver Buffalo Casino is a gaming establishment in Anadarko, Oklahoma, that is owned and operated by the Apache Tribe of Oklahoma. Kimberly Logsdon was employed as a cashier clerk at the Silver Buffalo Casino from July 25, 2007, until her termination on December 3, 2008. According to a second superseding indictment returned yesterday, from January of 2008 until December of 2008, Logsdon double-counted certain winning cashout vouchers presented by casino customers for payment and kept a total of more than $150,000. The indictment charges her husband, William Michael Logsdon, with two additional offenses. First, it alleges that he committed the crime of misprision of a felony, which is failing to notify law enforcement of a crime and taking steps to conceal that crime. Second, it charges him with committing perjury before a federal grand jury.
In two additional counts, the Logsdons are each charged with failing to file federal income tax returns for the 2008 calendar year.
If convicted of casino embezzlement, Kimberly Logsdon faces up to 20 years in prison and a $1,000,000 fine, plus mandatory restitution. William Michael Logsdon faces maximum sentences of three years and five years in prison on the misprision and perjury counts respectively, in addition to maximum fines of $250,000 on each count. If convicted of failure to file a federal income tax return, the Logsdons could be sentenced to one year in prison and fines of $100,000 each. The public is reminded that the indictment is merely an accusation and that the defendants are presumed innocent unless and until proven guilty. Reference is made to the second superseding indictment and other public filings for further information.
This case is the result of an investigation by the Bureau of Indian Affairs and the Internal Revenue Service Criminal Investigation. It is being prosecuted by Assistant U.S. Attorney Scott E. Williams.
Indictments Returned in Hammond Federal CourtRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana- The United States Attorney’s Office announced that the following Indictments were returned on June 19, 2013:
Steven Borchert, 52, of West Lafayette, Indiana, was charged with filing false tax returns for the years 2001 through 2009.This charge was filed as the result of an investigation by the Internal Revenue Service.This case has been assigned to and will be prosecuted by Assistant United States Attorney Gary Bell.
Miguel Herrera-Torres, 32, of Chicago, Illinois, was charged with reentry of a removed alien.This charge was filed as the result of an investigation by U.S. Homeland Security Investigations.This case has been assigned to and will be prosecuted by Special Assistant United States Attorney Armando Salinas, Jr.
Daniel Thomas Eckstrom, 30, of Lake Station, Indiana, was charged with production of child pornography, distribution of child pornography and possession of child pornography.These charges were filed as the result of an investigation by U.S. Homeland Security Investigations.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jill Koster.
Tyrone Benson, 37, of Hammond, Indiana, was charged with possession of a firearm by a convicted felon.This charge was filed as the result of an investigation by the Drug Enforcement Administration HIDTA Task Force.This case has been assigned to and will be prosecuted by Assistant United States Attorney David Nozick.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Illinois Man Illegally Purchased and Sold PeptidesRead the Press Release
PITTSBURGH, Pa. - A resident of Palatine, Ill., pleaded guilty in federal court to charges of mail fraud, misbranding of drugs and money laundering, United States Attorney David J. Hickton announced today.
Adam F. Higdon, 40, pleaded guilty to three counts before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that Higdon maintained two websites for the illegal distribution of peptides - chemical compounds which require a prescription for dispensation, but which are illegitimately sought by body-builders for muscle enhancement. Higdon deceived the Internet service provider and the FDA by falsely representing on the websites that he was selling these substances "for research use only . . . not for human consumption." During the period from January 2010 until January 2011, Higdon allegedly paid $131,472.50 to acquire the substances from suppliers in the Peoples Republic of China; and he thereafter sold the peptides for $397,662.00.
Judge Ambrose scheduled sentencing for Oct. 15, 2013 at 2 p.m.. The law provides for a maximum total sentence of 20 years in prison and a fine of $250,000 on the mail fraud count; three years in prison and a fine of $250,000 on the misbranding count; and 20 years in prison and a fine of $500,000 on the money laundering count. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Mr. Higdon's bond.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The FDA Office of Criminal Investigations, IRS - Criminal Investigation and the DEA conducted the investigation that led to the prosecution of Higdon.
Idaho Falls Man Sentenced for Possessing Sawed-off ShotgunRead the Press Release
POCATELLO – Timothy Scott Murphy, 25, of Idaho Falls, Idaho, was sentenced today in United States District Court to 39 months in prison, consecutive to the state sentence he is currently serving, followed by three years of supervised release for possession of an unregistered firearm, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Murphy to forfeit the firearm. Murphy pleaded guilty to the charge on May 22, 2012.
During the plea hearing, federal prosecutors informed the Court that on February 21, 2012, Idaho Falls Police officers received reports that Murphy was in possession of a sawed-off shotgun. Law enforcement officers located Murphy at a residence in Idaho Falls. Murphy left the house carrying a sawed-off shotgun, but when he saw the police officers he returned to the house. Following a four-hour standoff, Murphy surrendered to police. The sawed-off shotgun was recovered from inside the house. The firearm, made from a Maverick 12-gauge shotgun, had a barrel length of approximately 16 inches; however, the minimum legal barrel length for shotguns is 18 inches. Shotguns with barrel lengths of less than 18 inches must be registered in the National Firearms Registration and Transfer Record and Murphy had no such firearms registered to him.
The case was investigated by the Idaho Falls Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Husband and Wife Sentenced to Prison for Defrauding HSBC Mortgage Services and HSBC Bank Out of More Than $2 MillionRead the Press Release
Tampa, Florida - U.S. District Judge Elizabeth A. Kovachevich sentenced Michelle Guy (40) to 48 months in federal prison yesterday for conspiracy to commit mail fraud and wire fraud. The court also ordered Michelle Guy to forfeit over 400 high-end purses, shoes, sunglasses, electronics, and other clothing, which are traceable to proceeds of the offense. As part of her sentence, the court also entered a forfeiture money judgment in the amount of $2,205,420.82, which constitutes the proceeds of the mail and wire fraud conspiracy. In addition, Michelle Guy was ordered to serve 100 hours of community service and pay $2,280,263.17 in restitution to HSBC Bank. Michelle Guy pleaded guilty on April 4, 2013.
Previously, on May 7, 2013, U.S. District Judge James D. Whittemore sentenced Michelle Guy’s husband (Kevin Guy) to 37 months in prison for his involvement in the same fraud conspiracy. Kevin Guy pleaded guilty on February 12, 2013.
According to court documents, between February 2001 and August 2011, Michelle Guy worked in various administrative capacities for HSBC Mortgage Services in Brandon, Florida. During her employment, HSBC Mortgage Services maintained an employee Recognition Program. Beginning around January 2007, and continuing through November 2011, Michelle Guy conspired with various individuals, including her husband (Kevin Guy), to defraud HSBC Mortgage Services, Inc. and HSBC Bank by ordering approximately $2,216,776.12 in American Express gift cards, AMEX gift checks, and store gift cards, without authorization. Michelle Guy then directed those gift checks and gift cards to her residence and office. Once the gift cards and gift checks were delivered, Michelle and Kevin Guy deposited the AMEX gift checks into various bank accounts and used the gift cards to go on shopping sprees.
The gift cards and gift checks were used to buy numerous luxury items, including tens of thousands of dollars of merchandise from Gucci, Louis Vuitton, Tiffany’s, Neiman Marcus, and other high-end stores. On June 24, 2011, Kevin Guy used fraud proceeds as a down payment on a 2011 Mercedes Benz S Class with a sticker price of $96,000.00.
During the execution of two search warrants, law enforcement seized approximately seventy-two AMEX gift checks and more than sixty store gift cards associated with Dillard’s, Olive Garden, Target, Banana Republic, Nordstrom, Neiman Marcus, Foot Locker, Walmart, Outback, JC Penney’s, and Darden. Agents also seized over 25 luxury purses, more than 100 pairs of designer shoes, over 100 pairs of jeans, more than twenty pairs of designer sunglasses, four flat screen televisions, two computers, and a high-end refrigerator—all purchased with fraud proceeds.
This case was investigated by the United States Secret Service, the United States Postal Inspection Service, and the Hillsborough County Sheriff's Office. It was prosecuted by Assistant United States Attorneys Simon Gaugush and Anita Cream.
Holden Man Sentenced for Tax EvasionRead the Press Release
BOSTON, MA – A Holden man was sentenced yesterday in federal court in Worcester for committing tax evasion.
David L. Toppin, 47, was sentenced by U.S. District Judge Timothy S. Hillman to 36 months in prison to be followed by two years of supervised release. Toppin also was ordered to pay $716,479 in restitution to the IRS. Toppin was found guilty following a five-day jury trial in January 2013.
Toppin, the sole owner and operator of Pelletizer Group, Inc., did not file federal income tax returns for 1997-1999 until 2006. In the returns, Toppin reported owing $227,199 in federal income taxes for 1997-1999. The evidence at trial showed that Toppin evaded payment of his taxes and tried to impede the IRS’s collection of his income tax by, among other things, placing real estate and checking accounts in his wife’s name and by misleading the IRS about the extent of his assets and income.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Christine Wichers and Sandra Bower of Ortiz’s Economic Crimes Unit.
Henderson Man Sentenced to 15 Years in Federal Prison for Child Pornography ConvictionsRead the Press Release
LAS VEGAS, Nev. – A Henderson man convicted by a federal jury in February of multiple child pornography offenses, was sentenced today to 15 years in federal prison and lifetime supervised release, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Richard Carl Brown, 35, was sentenced by U.S. District Judge Robert C. Jones. Brown was convicted on Feb. 15, 2013, of one count of advertising child pornography, one count of transporting child pornography, one count of receipt of child pornography, and one count of possession of child pornography. The federal penalty for the advertising count mandated a sentence of at least 15 years in prison.“Thousands of children, including large numbers of runaway and homeless youth, are exploited in the production and distribution of pornographic materials,” said U.S. Attorney Bogden. “These children are re-victimized for the rest of their lives, as these materials are repeatedly circulated electronically. We will continue to aggressively pursue these defendants who attempt to exploit our children.”
According to the court records and evidence introduced at trial, in September 2011, a Henderson Police Department (HPD) detective initiated an undercover investigation into the possession and online distribution of child pornography. The detective identified an internet protocol address which had numerous files containing child pornography available for sharing on an online network known as Gnutella. Further investigation determined that Brown was the account holder of the internet address.
In October 2011, HPD detectives executed a search warrant at Brown’s house and seized computer equipment. A forensic analysis of the equipment revealed that it contained at least 24,950 images of child pornography, including videos and still images.
The defendant had worked in the computer services industry in the Las Vegas area from 2005 to 2011, and has no prior known felony convictions.
The case was investigated by the Henderson Police Department (HPD) in conjunction with the Southern Nevada Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorneys Amber M. Craig and Roger Yang.
The 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."
Frontier Airlines Passenger Indicted by Federal Grand JuryRead the Press Release
DENVER – Mark Michael Bote, age 23, of Thornton, Colorado, was indicted by a federal grand jury in Denver late yesterday, the United States Attorney’s Office and the FBI announced. The charges are one count of interference with flight crew members and attendants and one count of false information and threats. Bote is scheduled to appear before U.S. Magistrate Judge Craig B. Shaffer tomorrow morning, Thursday, June 20, 2013 at 10:00 a.m. for a detention hearing and possibly arraignment. The government has notified the court that it intends to seek detention of the defendant, meaning Bote would not be eligible for bond. The Magistrate Judge will make that decision. Bote could also be asked to enter a plea at tomorrow’s hearing. The defendant is represented by the Federal Public Defender’s Office. The case has been assigned to U.S. District Court Judge Robert E. Blackburn for proceedings once detention and arraignment have been addressed.
According to the FBI affidavit in support of the Criminal Complaint, on June 14, 2013 at 7:20 p.m., the FBI’s airport liaison was notified of an inflight disturbance aboard Frontier Airlines Flight 601 en route from McGhee Tyson Airport in Knoxville, Tennessee to Denver International Airport. Federal agents and task force officers responded to the airport based on the notification.
On board the flight, one passenger noticed Bote seemed nervous, was shaking, had his eyes closed, and was rocking back and forth. A second passenger also noticed that Bote looked nervous, and that his eyes were glazed over. When Bote took his seat he kept his backpack on. A flight attendant asked that he remove it. He put it under the seat in front of him, but would not let completely go of it. Later in the flight a flight attendant asked Bote if he was ok. He reply with the word “bomb” and some other words the flight attendant couldn’t make out. The flight attendant confirmed with him twice to make sure he knew he was saying the word “bomb”.
A third passenger on board who sat next to defendant noted that Bote spent a majority of the flight sleeping. When he suddenly awoke Bote allegedly said “help me help me.” The flight attendant asked what was wrong, and Bote responded “There’s a bomb. There’s a bomb.” He was shaking as he held the backpack. Later, Bote’s backpack was taken from him.
Toward the end of the flight the flight attendants discussed the situation. When Bote said he had a bomb in his carry-on bag the flight attendants consulted with the Captain. On Captain’s orders, the flight attendants initiated bomb procedures which included moving passengers and bags.
One of the passengers advised the flight attendants that she was traveling with Bote, and was a member of his church group. They had been in Tennessee helping build a church. She stated that the defendant was not well.
Further investigation by the FBI revealed that Bote thought someone was stalking him. He was holding on to the backpack because he thought someone put a bomb in it because it felt heavier than it had previously. Bote was arrested pending federal charges.
If convicted of interference with flight crew members and attendants, Bote faces not more than 20 years in federal prison, and a fine of up to $250,000. If convicted of false information and threats, the defendant faces not more than 5 years in federal prison, and up to a $250,000 fine.
This case was investigated by the FBI and the Denver Police Department.
The defendant is being prosecuted by Assistant U.S. Attorney James Allison, Chief of the Criminal Division of the Colorado U.S. Attorney’s Office.
The charges contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty.
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Fraud and Perjury Charges Filed Against Parma ManRead the Press Release
A grand jury returned a three-count indictment charging Yong Xiang Chen aka Qin Dong, age 37, of Parma, Ohio, with one count of naturalization fraud and two-counts of perjury, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Chen, a citizen of China, lied in his naturalization application and interviews when applying for naturalization by failing to disclose his use of another name when seeking immigration benefits.
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. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Phillip J. Tripi, following investigation by agents of the Immigration and Customs Enforcement, Homeland Security Investigations.
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.
Four Miami-Dade Residents Charged in $1.5 Million Bank Fraud and Money Laundering Scheme in Connection with Fraudulent Boat Loan ApplicationsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Jeff Atwater, Florida Chief Financial Officer, and J.D. Patterson, Director, Miami-Dade Police Department, announce the unsealing of a 40-count indictment charging four defendants with various counts of bank fraud, money laundering, and wire fraud. The indictment also seeks the forfeiture of criminal proceeds derived from the fraud, including real property and $1,585,657.10. All four defendants were arrested yesterday and made their initial appearances today in front of Magistrate Judge Edwin G. Torres.
The indictment charges defendants Eduardo Hernandez, Jr., 32, of Miami, Alexander Orriols, 43, of Miami Beach, Jose Arias, 50, of Miami, and Milena Hernandez, 30, of Miami, with one count of conspiracy to commit bank fraud (Count 1), and one count of conspiracy to commit money laundering (Count 21). Additionally, the indictment charges various individual defendants with 19 counts of substantive bank fraud (Counts 2-20), 18 counts of money laundering (Counts 22-39), and one count of wire fraud (Count 40).
According to the indictment, the defendants engaged in a bank fraud scheme using straw buyers to obtain loans using false supporting information and documentation. To execute the scheme, the defendants allegedly recruited and induced individuals to act as straw buyers/loan applicants for boats from companies owned by or associated with the defendants. The straw buyers/loan applicants would then submit loan applications to financial institutions. The applications contained false financial information and documentation regarding purported down payments and deposits allegedly made by the straw buyers/loan applicants to the defendants’ boat companies. The defendants also allegedly falsified the financial records of the straw buyers/loan applicants, including IRS W-2 Forms, bank statements and federal income tax returns, and submitted these false financial documents to the financial institutions. Based on these false documents and misrepresentations, the financial institutions approved and issued loans to the straw buyers/loan applicants.
The indictment further alleges that the defendants paid the straw buyers/loan applicants a portion of the loan proceeds that the boat companies received from the lending institutions, as payment for their service and also to cover some of the monthly payments on the loans so as to keep the fraud afloat. The defendants paid the straw buyers/loan applicants in cash and through third party checks to avoid detection. Lastly, the defendants diverted the loan proceeds for their personal use and used some of the money to perpetuate the fraud scheme.
If convicted, the defendants face the following possible maximum statutory sentences: 30 years in prison for conspiracy to commit bank fraud and substantive bank fraud; 20 years for money laundering conspiracy, substantive money laundering (Counts 22-31), and wire fraud; and 10 years for substantive money laundering (Counts 32-39).
Mr. Ferrer commended the ICE-HSI, IRS-CI, Florida Department of Insurance Fraud, and the Miami-Dade Police Department for their outstanding investigative work in this case. The case is being prosecuted by Assistant U.S. Attorney Robert J. Lehner.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Four Men Arrested for Armed Robbery of New Jersey Target Store on Black FridayRead the Press Release
NEWARK, N.J. – FBI special agents and Union Police Department detectives arrested four New Jersey men this morning in connection with the armed robbery last November of a Target Store in Union, N.J., on “Black Friday,” U.S. Attorney Paul J. Fishman announced.
Darrell A. Carter, 23, of Irvington, Daquaan Vaughn, 35, of Newark, Lavell Jones, 27, of East Orange, and Maryland Liggins, III, 28, of Newark, are charged in a criminal complaint with one count of committing a Hobbs Act robbery. Carter and Vaughn are each charged with an additional count of using a firearm in furtherance of a crime of violence.
All four defendants are scheduled to appear this afternoon before U.S. Magistrate Judge Michael Hammer in Newark federal court.According to the complaint unsealed today:
On Nov. 23, 2012, Carter, Vaughn, Jones and Liggins allegedly carried out an armed robbery of the Target store located on Springfield Avenue in Union on Black Friday – the day after Thanksgiving – which is considered to be one of the busiest shopping days of the year. The defendants each allegedly played different roles in the robbery: Carter and Vaughn entered the store and robbed the store’s employees at gunpoint; Liggins served as the getaway driver; and Jones posed as a shopper in the store and acted as a lookout.
Carter and Vaughn entered the store at 9:47 p.m. and hid in an employee bathroom. An employee eventually attempted to enter the bathroom and Carter and Vaughn physically grabbed the employee, brandishing handguns. Carter and Vaughn restrained the employee’s hands with zip-ties and then demanded the security code to access the store’s cash room. Carter and Vaughn obtained the code from the employee and used it to access a secure hallway that leads to the cash room, where they waited for employees to transport a cash cart from the store’s cash registers to the cash room when the store closed. Carter and Vaughn then rushed into the cash room brandishing guns, ordered the employees to lie on the ground, and stole more than $50,000 from a safe in the cash room before exiting the store and running out to a vehicle driven by Liggins that was parked on the shoulder of nearby Route 78.
The charge of Hobbs Act robbery is punishable by a maximum potential penalty of 20 years in prison. The charge of using a firearm in furtherance of a crime of violence carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years, which must run consecutively to any other prison term. Each of these counts also carries a maximum fine of $250,000.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to the arrest and charges. He also thanked the Union Police Department for its role in the investigation and Target corporate security for its cooperation.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office General Crimes Unit in Newark.The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
13-257Carter, Darrell A. Et Al. Complaint
Four Kentucky Individuals Sentenced for Roles in Kidapping and Assaulting a Harlan County ManRead the Press Release
Four Harlan County, Ky., relatives were sentenced today by U.S. District Judge Gregory Van Tatenhove for their roles in kidnapping and assaulting Kevin Pennington, a gay man. David Jason Jenkins, known as Jason, 39, received 30 years in prison, Anthony Ray Jenkins, 22, 17 years in prison, Mable Ashley Jenkins, known as Ashley, 20, 100 months in prison and Alexis LeeAnn Jenkins, 20, 8 years in prison.
In October 2012, a federal jury in London, Ky., convicted Jason Jenkins and Anthony Jenkins of kidnapping and conspiracy charges related to the April 4, 2011 assault of Pennington. The jury acquitted the men of violating the sexual orientation provision of the Matthew Shepard James Byrd Jr. Hate Crimes Prevention Act. Testimony at trial established that the two men, who are cousins, carried out the crime with help from their relatives - Ashley Jenkins and Alexis Jenkins, who both pleaded guilty prior to trial to aiding and abetting kidnapping and aiding and abetting the hate crime assault against Pennington. Both women testified against the defendants. The women’s guilty pleas to federal hate crime charges constituted the first federal convictions in the nation under the sexual orientation provision of the Matthew Shepard James Byrd Jr. Hate Crimes Prevention Act.
The evidence at trial established that the four relatives planned in advance of the assault to kidnap Pennington, take him to a remote location and beat him to death. After luring Pennington by false pretenses into a truck driven by Anthony Jenkins, the group drove Pennington up a deserted mountain road into Kingdom Come State Park, where they dragged Pennington into the road and beat him.
The evidence also established that Pennington escaped while the two men were searching in the back of the truck for a tire iron to use to kill Pennington. Pennington ran off the road and threw himself over a ledge, where he hid behind a rock until the group finally gave up searching for him and drove away. Pennington staggered part-way down the mountain, where he found a ranger shack, broke a window and called 911.
Ashley and Alexis Jenkins both testified that they and the men had agreed in advance to lure Pennington into the truck, drive him to a deserted area and beat him because of his sexual orientation. The women also testified that during the beating, they all used anti-gay slurs and that the group intended to kill Pennington.“As the court’s sentence shows, this was a vicious criminal act. The Department of Justice will continue to use every tool in our arsenal to vindicate the rights of victims of violent crimes,” said Roy L. Austin Jr., Deputy Assistant Attorney General, Civil Rights Division. “The Department will also continue to use the Shepard Byrd Act to vigorously investigate hate crimes allegations and work with our state and local law enforcement partners in their efforts to identify these crimes.”
“Justice imposes a heavy price on those who engage in the sort of gratuitous violence that led to this prosecution,” said Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky. “The defendants’ crimes were brutal and cruel. They fully deserve the sentences delivered by the Court. The message is clear-our society will not tolerate such horrific conduct. The team of dedicated professionals who investigated and successfully prosecuted this case are to be congratulated for their fine work. We also thank our state and local partners who played an important role in achieving a just result in this matter.”
“We are pleased that this matter has been successfully resolved and that justice has been done,” said Perrye K. Turner, Special Agent in Charge of the FBI in Kentucky. “We feel the length of the sentences sufficiently reflects the seriousness of these violent acts”
This case was investigated by Special Agents Anthony Sankey and Mike Brown with the FBI and was prosecuted by Assistant U.S. Attorney Hydee Hawkins from the U.S. Attorney’s Office for the Eastern District of Kentucky and Trial Attorney Angie Cha from the Civil Rights Division.
Four Indicted by Elkins Grand JuryRead 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
The following indictments were also returned by the grand jury this week:
DANIEL JOSEPH NASCEMBENI, age 71, of Petersburg, West Virginia, was named in a two-count Indictment charging him with “Mail Fraud,” and “False Statement of Material Fact in Application for Social Security Income Benefits.” It is alleged that NASCEMBENI used two different names and two separate social security numbers to fraudulently obtain Supplemental Security Income (SSI) benefits, food stamp benefits and welfare benefits.
If convicted, NASCEMBENI faces up to 20 years imprisonment and a $250,000 fine on the mail fraud charge and up to 5 years imprisonment and a $250,000 fine on the false statement charge. This case was investigated by the Social Security Administration.
CHRISTOPHER MICHAEL FISCHER, age 27, of Moorefield, West Virginia, and ROGER ALLEN SEE, age 23, of Lost River, West Virginia, were named in a seven-count Indictment charging them with “Conspiracy to Distribute Methamphetamine.” FISCHER is named in six additional counts and SEE is named in one additional count charging them with the possession of material and pseudoephedrine to be used in the manufacture of methamphetamine. If convicted, FISCHER and SEE face up to 20 years imprisonment and a fine of $1,000,000 on six counts and up to 10 years imprisonment and a $250,000 on one. This case was investigated by the Moorefield Police Department.
JACK FRANCIS GIBBINS, age 35, of Moorefield, West Virginia, was named in a two- count indictment charging him with “Distribution of Heroin” and “Possession with intent to Distribute Heroin and Oxycodone.” If convicted, GIBBINS faces up to 20 years imprisonment and a $1,000,000 fine on each count. This case was investigated by the Hardy County Sheriff’s Department.
These cases will be prosecuted by Assistant United States Attorney Stephen D. Warner. 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.Four Eastern Kentuckians Sentenced for Roles in Kidnapping and Assaulting A Letcher County ManRead the Press Release
LONDON, KY - Four Harlan County, KY., relatives were sentenced today by U.S. District Judge Gregory Van Tatenhove for their roles in kidnapping and assaulting Kevin Pennington, a gay man. David Jason Jenkins (“Jason”), 39, received 30 years in prison, Anthony Ray Jenkins, 22, 17 years in prison, Mable Ashley Jenkins (“Ashley”), 20, 100 months in prison and Alexis LeeAnn Jenkins, 20, 8 years in prison.
In October 2012, a federal jury in London, KY., convicted Jason Jenkins and Anthony Jenkins of kidnapping and conspiracy charges related to the April 4, 2011 assault of Pennington. The jury acquitted the men of violating the sexual orientation provision of the Matthew Shepard James Byrd, Jr. Hate Crimes Prevention Act. Testimony at trial established that the two men, who are cousins, carried out the crime with help from their relatives - Ashley Jenkins and Alexis Jenkins, who both pleaded guilty prior to trial to aiding and abetting kidnapping and aiding and abetting the hate crime assault against Pennington. Both women testified against the defendants. The women’s guilty pleas to federal hate crime charges constituted the first federal convictions in the nation under the sexual orientation provision of the Matthew Shepard James Byrd, Jr. Hate Crimes Prevention Act.
The evidence at trial established that the four relatives planned in advance of the assault to kidnap Pennington, take him to a remote location and beat him to death. After luring Pennington by false pretenses into a truck driven by Anthony Jenkins, the group drove Pennington up a deserted mountain road into Kingdom Come State Park, where they dragged Pennington into the road and beat him.
The evidence also established that Pennington escaped while the two men were searching in the back of the truck for a tire iron to use to kill Pennington. Pennington ran off the road and threw himself over a ledge, where he hid behind a rock until the group finally gave up searching for him and drove away. Pennington staggered part-way down the mountain, where he found a ranger shack, broke a window and called 911.
Ashley and Alexis Jenkins both testified that they and the men had agreed in advance to lure Pennington into the truck, drive him to a deserted area and beat him because of his sexual orientation. The women also testified that during the beating, they all used anti-gay slurs and yelled “Kill the faggot!” and that the group intended to kill Pennington.
“Justice imposes a heavy price on those who engage in the sort of gratuitous violence that led to this prosecution,” said Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky. “The defendants’ crimes were brutal and cruel. They fully deserve the sentences delivered by the Court. The message is clear-our society will not tolerate such horrific conduct. The team of dedicated professionals who investigated and successfully prosecuted this case are to be congratulated for their fine work. We also thank our state and local partners who played an important role in achieving a just result in this matter.”
“We are pleased that this matter has been successfully resolved and that justice has been done,” said Perrye K. Turner, Special Agent in Charge of the FBI in Kentucky. “We feel the length of the sentences sufficiently reflects the seriousness of these violent acts”
This case was investigated by Special Agents Anthony Sankey and Mike Brown with the FBI and was prosecuted by Assistant U.S. Attorney Hydee Hawkins from the U.S. Attorney’s Office for the Eastern District of Kentucky, and Trial Attorney Angie Cha from the Civil Rights Division.
Former Supervisory Official at Nyc Department of Housing Preservation & Development Sentenced to 18 Months’ Imprisonment for Accepting $100,000 BribeRead the Press Release
Earlier today, Luis Adorno, formerly the Supervisory Construction Project Manager of the Department of Architecture and Construction Engineering at the New York City Department of Housing Preservation and Development (HPD), was sentenced to a term of imprisonment of 18 months, followed by 300 hours of community service, for his corruption conviction for taking bribes. As part of his sentence, Adorno also was ordered to forfeit $100,000 in bribery money to the government, representing the proceeds of his crime, and fined $10,000. The sentence was imposed by United States District Judge Nina Gershon at the U.S. Courthouse in Brooklyn, New York.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Daniel R. Petrole, Deputy Inspector General, United States Department of Labor (DOL) Office of Inspector General; and Rose Gill Hearn, Commissioner, New York City Department of Investigation (DOI).
Until his arrest in June 2012, Adorno was employed by HPD, the largest municipal developer of affordable housing in the nation. Adorno was responsible for personally conducting inspections of HPD construction projects and also supervising other inspectors. During 2008 and 2009, a contractor who worked on several HPD construction projects paid Adorno what amounted to a $100,000 bribe for Adorno’s assistance in getting the contractor additional work with HPD. The bribe was structured in a sophisticated manner to ensure that actual cash did not pass through Adorno’s hands. Rather, the contractor paid $100,000 to a real estate developer who was developing several HPD projects, and in return for the $100,000, the real estate developer agreed to give Adorno a 30 percent equity stake in the developer’s company.
Today’s sentencing proceeding is the latest stemming from the government’s wide-ranging investigation into corruption involving the affordable housing industry in New York City. Four real estate developers and two other former HPD officials have pleaded guilty in this district to various charges, including racketeering conspiracy, fraud, and bribery, related to the development of affordable housing in the City. Three additional defendants await trial.
“Luis Adorno admitted that he agreed to put his finger on the scale in favor of a contractor who paid him $100,000 in bribes. By receiving payment in the form of an equity stake in a real estate development company, Adorno sought to create the bribe that would keep on giving. Today’s sentence sends a clear message that any public servant, whether an elected legislator or an appointed official, who betrays the public trust will be prosecuted to the fullest extent of the law,” stated United States Attorney Lynch. Ms. Lynch thanked the Internal Revenue Service, Criminal Investigation, New York; the United States Department of Housing and Urban Development, Office of Inspector General; and the New York City Police Department for their cooperation in this case.
DOI Commissioner Gill Hearn stated, “This ex-City employee lost his job and his bribe money and will soon take up residence in a prison cell. That was not the nest egg he bargained for when he sold his office for a hidden stake in a real estate deal. DOI thanks our federal partners for their shared determination to unearth the facts and demonstrate again that corruption is a losing strategy.”
The government’s case is being prosecuted by Assistant United States Attorneys Cristina M. Posa, Anthony M. Capozzolo, and Claire Kedeshian.
The Defendant
LUIS ADORNO
Residence: Scarsdale, New York
Age: 48Former Student Sentenced for Computer Hacking at University of Central MissouriRead the Press Release
KANSAS CITY, Mo. -- Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former student of the University of Central Missouri was sentenced in federal court today for his role in a computer hacking conspiracy.
Joseph A. Camp, 29, of Kansas City, Mo., was sentenced by U.S. District Judge Brian C. Wimes to three years in federal prison without parole. The court also ordered Camp to pay $61,500 in restitution.
Camp has been in state or federal custody since his prior arrest in a New York investigation in December 2009. Federal charges are still pending in the Western District of New York.
On April 12, 2013, Camp pleaded guilty to an unlawful computer hacking scheme at UCM from March 2009 to March 2010. Camp, who had been a student at UCM in the fall semester of 2009, conspired with Daniel J. Fowler, 23, of Kansas City, Mo., a student and community advisor at UCM. Fowler pleaded guilty to his role in the conspiracy on June 22, 2011 and awaits sentencing. In addition to the computer hacking conspiracy, Fowler also pleaded guilty to one count of computer intrusion causing damage (computer hacking).
Camp and Fowler gained unlawful and unauthorized access to the UCM computer network, which allowed them to view and download large databases of faculty, staff, alumni and student information. They were also able to transfer money to their student accounts and attempted to change grades.
Camp and Fowler developed a computer virus, which they used to infect UCM computers B including an attempt to infect the computer used by the university’s president. They used several strategies to infect computers, such as offering to show vacation photographs on a thumb drive that contained the virus. They successfully distracted and misled at least one UCM administrator and were able to use a thumb drive to download their virus onto his UCM computer. They monitored the administrator’s computer activity and captured his username and password. They used their remote access of this administrator’s computer to remotely turn on the webcam to watch and photograph the administrator sitting at his desk in his office and to download his e-mails. They also obtained the username and password of a residence hall director and used that information to exploit the university’s computer system to conduct financial transactions in an attempt to unlawfully credit their student accounts with UCM funds.
Camp and Fowler successfully used the identities of fellow students, along with their university computer network permissions, to gain access to various portions of the computer network to which they would otherwise not have access. This also enabled them to mask their activities and mislead university authorities as to the identities of those conducting the attacks on the computer network.
Camp and Fowler manually installed the virus on several UCM computers in public areas, such as computer labs and the library. Once the virus was successfully installed on a computer, Camp and Fowler could obtain remote access to the computer, capture a user’s keystrokes, download any of the user’s files and remotely turn on the user’s webcam to watch and photograph the user of the infected computer.
Camp also admitted that he and Fowler obtained access to the affidavit used in support of a search warrant on Camp’s room. Camp used the information in that affidavit to make posts on Facebook.com to communicate threats and harass potential witnesses against them.
Camp was arrested when he traveled to New York in December 2009. After learning that Camp had been arrested in New York, Fowler encrypted and destroyed computer evidence that he thought could be used against him.
This case was prosecuted by Assistant U.S. Attorney Matthew P. Wolesky. It was investigated by the University of Central Missouri Police Department and the FBI.Former Old Saybrook Resident Admits Operating Fraud SchemesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that PAUL E. BRENNAN, 45, formerly of Old Saybrook, Conn., and Phoenix, Ariz., waived his right to indictment and pleaded guilty yesterday before Senior United States District Judge Alfred V. Covello in Hartford to federal fraud offenses.
According to court documents and statements made in court, from approximately March 2009 to August 2011, BRENNAN convinced women with whom he was romantically involved, and other acquaintances, to cash checks for him at financial institutions knowing that the checks were drawn on closed or underfunded accounts and would be returned for nonpayment. BRENNAN also cashed, or had others cash for him, fraudulent checks at check cashing businesses in Connecticut.
Also, from approximately November 2010 to June 2011, BRENNAN defrauded individuals by pitching phony investment deals and soliciting money from victims for fraudulent business ventures. During the scheme, BRENNAN convinced one victim to give him more than $100,000 for property deals and stock market investments, and he convinced other victims to give him money for investments in fraudulently-operated businesses, including BC Property Management and B&D Powerwashing. BRENNAN also persuaded certain victims to grant him authorization to use their credit cards and lines of credit.
In total, BRENNAN’s fraud schemes victimized more than 10 individuals and caused nearly $400,000 in losses to those victims. BRENNAN used much of the money he received from his victims to pay personal expenses.
BRENNAN pleaded guilty to one count of bank fraud and one count of mail fraud. Judge Covello has scheduled sentencing for September 11, 2013, at which time BRENNAN faces a maximum term of imprisonment of 30 years on the bank fraud count and 20 years on the wire fraud count.
BRENNAN has been detained since his arrest in Arizona on February 27, 2013.This matter has been investigated by the Federal Bureau of Investigation, the Old Saybrook Police Department and the State’s Attorney for the Judicial District of New London. The case is being prosecuted by Special Assistant United States Attorney Kerry L. Quinn.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Former Grady Hospital Employee Indicted for EmbezzlementRead the Press Release
Defendant Stole Over $450,000 From Georgia’s Largest Hospital
ATLANTA - Donald Thomas, the former Assistant Controller for the Grady Memorial Hospital Corporation, was indicted on June 18, 2013, by a federal grand jury for embezzling over $450,000 in public funds.
“Thomas is charged with stealing from a hospital that serves the healthcare needs of thousands of people in the Atlanta community and beyond,” said United States Attorney Sally Quillian Yates. “Because Grady relies on federal funding to provide medical care to those who cannot afford it, money embezzled from Grady cheats both Grady patients and taxpayers.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI launched its criminal investigation into this matter after receiving information that Thomas, a person in a position of trust at Grady Memorial Hospital, was abusing that position and, in fact, embezzling hospital funds. The federal indictment of Thomas should serve as a message that the FBI will aggressively dedicate its various investigative resources in such matters that can adversely impact our healthcare system and those that provide it.”
According to United States Attorney Yates, the charges and other information presented in court: Thomas was employed as Assistant Controller for the Grady Memorial Hospital Corporation (“Grady”) from December 1994 through June 2011. Grady is one of the largest public health systems in the United States and oversees Grady Memorial Hospital, the largest hospital in Georgia. Grady relies significantly on federal funding, including Medicare reimbursement and grants.
The indictment alleges that, beginning in January 2008, Thomas used his access to Grady’s payroll system to fabricate additional compensation, such as vacation pay and severance pay, to be issued to terminated Grady employees. Thomas then altered payroll records so that the additional payments were deposited directly into accounts under his control. In addition, according to the indictment, on two occasions, Thomas created paper checks for falsified compensation made payable to terminated Grady employees. Thomas allegedly forged the employees’ signatures to endorse the checks before depositing them into one of the bank accounts under his control.
According to the indictment, the scheme came to light when a former Grady employee expressed concern that her 2011 W-2 tax form indicated a larger amount of compensation from Grady than she had actually earned or received. Further investigation revealed that her payroll records had been altered and additional pay in her name had been deposited into an account controlled by Thomas. The indictment states that at least twenty former Grady employees received inaccurate tax forms as a result of Thomas’s alleged crimes.
The indictment alleges that over the course of the scheme, Thomas obtained over $450,000 from Grady. Thomas unsuccessfully attempted to cover up his embezzlement by reversing some of the changes that he had made in Grady’s payroll system.
Thomas, 53, of Atlanta, Ga., was arraigned today before United States Magistrate Judge Alan J. Baverman on charges of embezzlement, wire fraud and bank fraud, and was released on bond. The charges carry a maximum statutory penalty of 30 years in prison and a fine of up to $1,000,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant's guilt beyond a reasonable doubt at trial.
This case is being investigated by Special Agents of the Federal Bureau of Investigation.
Assistant United States Attorneys Shanya J. Dingle and G. Scott Hulsey are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Former Director of Cleveland VA Medical Center Indicted for Conspiracy, Fraud, Money Laundering and Other ChargesRead the Press Release
The former director of the Cleveland VA Medical Center was indicted on 36 counts, accused of accepting bribes in return for influencing development projects and decisions involving the U.S. Department of Veterans Affairs, law enforcement officials said.
William D. Montague, 61, of Brecksville, was charged with conspiracy to commit honest services mail fraud, bribery, money laundering, multiple counts of wire fraud, mail fraud, disclosing public contract information and other charges.
The indictment is part of the Cuyahoga County corruption investigation.
“As a Veterans Affairs Medical Center Director, William Montague misled staff and misused his position to enrich himself and businesses pursuing contracts with the Veterans Administration,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office. “The arrest of Montague reflects law enforcement’s continued dedication to root out corruption at any level.”
“Violating the public trust for personal gain cannot be tolerated, particularly at the expense of our nation’s heroes,” said Gavin McClaren, United States Department of Veterans Affairs – Office of Inspector General, Resident Agent in Charge, Cleveland.
The Louis Stokes Cleveland VA Medical Center was approximately the fifth-largest in the country, annually serving about 95,000 veterans who lived in 24 counties in Northeast Ohio. Montague began working for the VA in 1975 and served as director of the Cleveland VA Medical Center from 1995 until his retirement in 2010, according to the indictment.
The VA had been operating medical facilities in both Brecksville and the Wade Park neighborhood in Cleveland. In the early 2000s, the VA began exploring the feasibility of consolidating the facilities into one location, known as the VA Development Project. The combined facility would include a domiciliary, office space and parking, according to the indictment.
The VA selected Business 42 to develop and managed the VA Development Project. Michael Forlani was the sole member of Business 42, and he had multiple other business interests, including as president and part-owner of Doan Pyramid LLC, according to the indictment.
Forlani is currently serving eight years in prison after pleading guilty to racketeering, bribery and other charges.
On or about Jan. 1, 2010, Business 66 began operations, having purchased Doan’s assets. Business 66 operated out of Doan’s former office space and retained many Doan employees, according to the indictment.
Montague solicited and accepted gifts, payments and other things of value from Forlani and Business 66, including a consulting contract between Business 66 and House of Montague, a financial services company Montague started in 2008, according to the indictment.
The indictment details numerous instances between 2007 and 2010 in which Montague took actions on behalf of Forlani or others. Those activities include helping expedite getting a bond rating from Standard & Poors and desired ratings, help getting desired legal opinions from the VA, help getting desired parking rates, and other activities.
Montague retired from the VA on Feb. 3, 2010, about a month after Business 66 began operations. On Feb. 15, 2010, Business 66 issued a check to House of Montague for $2,750, the first of many approximately monthly checks. On Dec. 29, 2010, Montague became a member of the Business 66 Board of Advisors, according to the indictment.
From about Feb. 15, 2010 through May 2012, Business 66 paid House of Montague $156,750, according to the indictment.
In a different scheme, Montague entered into a consulting agreement with a company identified as Business 73, headquartered in Virginia. The company agreed to pay Montague $2,500 a day for a minimum of 24 days, between July 1, 2008 and July 1, 2009, while Montague was still employed by the VA, according to the indictment.
Montague emphasized his ability to access key decision makers in the VA quickly and effectively as one of the reasons he could help Business 73 develop joint ventures and/or expand services provided by the VA. Montague told an official at Business 73 that he had consulted with a VA ethics panel and that he had authorization to do the consulting work as long as he took vacation time to perform the work. In fact, Montague had no such authorization, according to the indictment.
The case was prosecuted by Assistant United States Attorneys Antoinette T. Bacon and Nancy L. Kelley following an investigation by the FBI and United States Department of Veterans Affairs – Office of Inspector General.
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 offenses and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
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.
Florida Man Convicted of Defrauding U.S. InvestorsRead the Press Release
BOSTON – A Florida man was convicted today following a jury trial for his role in a scheme to defraud investors from across the country out of millions of dollars.
Alan Gilner, 78, of New Smyrna Beach, Fla., was convicted of conspiracy, mail fraud, wire fraud and money laundering following a seven-day jury trial. Last month, Randi A. Bochinski, a Canadian citizen, pleaded guilty to wire fraud, mail fraud, and money laundering for his role in the scheme.
Gilner was convicted for his role in a conspiracy to promote a series of high-yield investment programs. Gilner and Bochinski promised investors significant returns on their investments within a short amount of time. Gilner recruited United States-based investors, including friends and acquaintances in Florida, and also advertised in an investment newsletter that was distributed throughout the United States. Gilner often made the initial presentations selling the high yield investments and brought Bochinski in when he needed assistance in convincing someone to invest. Once investors sent their money to either Gilner or Bochinski, the defendants diverted the invested funds for other uses, including their own personal use.
In order to lull investors into believing that their funds had been invested as promised, Bochinski and Gilner often made at least some of the promised “return” payments, using other investor money to fund the “returns.” In some instances, Bochinski and Gilner attempted to return principal to frustrated investors by using counterfeit checks.
U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for Gilner on September 26, 2013. Bochinski is scheduled to be sentenced on October 3, 2013.
The statutory maximum penalty for the conspiracy charge is five years in prison, to be followed by three years of supervised release and a $250,000 fine. The statutory maximum penalties for the mail and wire fraud charges are 20 years in prison, to be followed by three years of supervised release and a $250,000 fine. The statutory maximum penalty for the money laundering charge is 10 years in prison, to be followed by three years supervised release, and a $250,000 fine.
United States Attorney Carmen M. Ortiz, Kevin Niland, Inspector in Charge of the United States Postal Inspection Service, and William P. Offord, Special Agent in Charge of the U.S. Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by the Assistant U.S. Attorneys Sarah E. Walters and Stephen E. Frank of Ortiz’s Economic Crimes Unit.
Five Stark County Residents Accused of Laundering $530,000 from Illegal Bookmaking OperationRead the Press Release
A federal grand jury returned a two-count indictment charging five Stark County residents with being engaged in a conspiracy to launder more than $530,000 obtained through the operation of an illegal sports bookmaking operation, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Joseph D. Nemeth, age 49, Rhonda S. Albaugh, age 45, both of Uniontown, Ohio, Joseph M. Nemeth, age 75, Helen C. Nemeth, age 75, and Robert T. Johns, age 66, all of Canton, Ohio, are indicted in count one with conspiracy to launder monetary instruments.
Joseph D. Nemeth faces an addition count of transmitting wagering information in interstate commerce. He is accused of being engaged in the business of betting and wagering and with using one or more wire communication facilities for the transmission and interstate commerce of bets and wagers and information assisting in the placing of bets and wagers on one or more sporting events and contests.
The indictment alleges that all of the defendants from conspired to launder at least $530,000 generated from an illegal sports bookmaking operation between 2004 and 2013. All but $15,000 of these transactions occurred after November 1, 2008, according to the indictment.
Joseph D. Nemeth conducted a sports bookmaking operation by accepting wagers on professional and college basketball and football games. He collected a percentage off the bets and used offshore Internet gambling services to record and process bets placed by his gamblers. He travelled to various businesses and residential locations to meet with bettors, reconcile accounts and collect or pay money, according to the indictment.
Joseph D. Nemeth instructed Robert Johns and other gamblers to pay some of their loss debts to him by paying Rhonda Albaugh by check, which she then deposited into various bank accounts.
Joseph D. Nemeth and Albaugh opened numerous credit card and bank accounts and utilized them to receive payments from various gamblers. They also took illegal gambling proceeds and invested them into real estate and construction projects, which were titled in the names of others, including Helen Nemeth and Joseph M. Nemeth, according to the indictment.
If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including a defendant’s prior criminal record, if any, a defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the United States Secret Service and its Money Laundering Task Force. The matter was presented to the grand jury by Assistant United States Attorneys Robert E. Bulford and Robert J. Patton.
An indictment is only a charge and is not evidence of guilty. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Five Men Convicted in Record Crystal Meth SeizureRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick A. Miles, Jr., announced that five men have been convicted in connection what is believed to be the largest seizure of crystal methamphetamine (or “ice”) in the state of Michigan. In June of 2012, a confidential informant told the Department of Homeland Security about a large amount of crystal meth that was being offered for sale in Southwestern Michigan. A Michigan State Police undercover officer was introduced to a person selling the meth, and several undercover purchases were made. In August of 2012, more than 20 pounds of pure crystal meth were seized from a vehicle and pole barn in Van Buren County. The meth had a wholesale value of nearly $1/2 million, and is believed to be the largest seizure of crystal meth in Michigan.
Five men were indicted for conspiracy and possession with intent to distribute the seized methamphetamine. Four of those men, Alejandro Garcia, age 45, of Grand Junction, MI; Thomas Streich, age 59, of Lawton, MI; and Jon Jeannin, Jr., age 33, and Brent Kellerman, age 25, both of the Kansas City, MO area; pled guilty to the conspiracy charge before trial. On June 18, 2013, a federal jury in Grand Rapids found Jose Sierra-Villegas, age 39, of Kansas City, MO, guilty of the conspiracy and possession with intent to distribute charges, following a five day trial before the Hon. Robert J. Jonker.
Alejandro Garcia was recently sentenced to 108 months in prison for his role in the conspiracy. The other defendants remain in custody awaiting sentencing of up to life in prison.
U.S. Attorney Miles praised the cooperative effort of federal, state and local law enforcement agencies in this investigation: “This case prevented an extremely large amount of crystal meth from flooding our community. It is an excellent example of what can be accomplished when federal, state and local law enforcement agencies share their resources and focus their mutual attention on a large drug trafficking group.” The case was investigated by the U.S. Department of Homeland Security Investigations (HSI), the federal Drug Enforcement Administration (DEA), and the Michigan State Police Metropolitan Enforcement Team (MET), with assistance from other state and local agencies.
The case was prosecuted by Asst. U. S. Attorneys John Bruha and Hannah Bobee.
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