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19 June 2013
Federal Jury Convicts Mexican National on Marijuana Importation and Trafficking ChargesRead the Press Release
ALBUQUERQUE – Earlier today, a federal jury sitting in Las Cruces, N.M., found Manuel Paulino Alvarez-Valdez, 36, of Juarez, Mexico, guilty on marijuana importation and trafficking charges after a three-day trial. The jury’s guilty verdict was announced by U.S. Attorney Kenneth J. Gonzales and Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) El Paso.
Alvarez-Valdez was arrested on marijuana importation and trafficking charges on Nov. 20, 2012, after U.S. Customs and Border Protection (CBP) officers found approximately 418 pounds of marijuana concealed in compartments under the bed and floorboards of his pickup truck during an inspection at the Santa Teresa, N.M., Port of Entry. In Feb. 2013, Alvarez-Valdez was indicted on those same charges. Trial of the case began on June 17, 2013, and concluded this afternoon when the jury returned a guilty verdict against Alvarez-Valdez on both counts of the indictment.
The evidence at trial established that, on Nov. 20, 2012, Alvarez-Valdez entered the United States at the Santa Teresa Port of Entry driving a pickup truck. At the time, Alvarez-Valdez claimed ownership of the truck. A CBP officer directed Alvarez-Valdez to a secondary inspection after evidence of tampering was found on the truck. During the secondary inspection, the truck was next X-rayed and the X-ray showed anomalies in the bed area. When the truck’s bed was dismantled, the officers found 228 bundles of marijuana weighing an aggregate of 418 pounds.
After the marijuana was discovered, Alvarez-Valdez was arrested. During post-arrest questioning, Alvarez-Valdez initially claimed that he borrowed the truck to travel to El Paso, Texas, where he intended to purchase two vehicles. After the officers reminded Alvarez-Valdez that he previously had claimed ownership of the truck when he first entered the port of entry, Alvarez-Valdez admitted ownership of the truck. Thereafter, Alvarez-Valdez claimed that the truck remained on a used car lot because he was making payments toward buying the truck, but he claimed that he was permitted to borrow the truck as needed.
The jury deliberated approximately three hours before returning a guilty verdict.
Alvarez-Valdez has been in federal custody since his arrest in Nov. 2012, and remains detained pending his sentencing hearing which has yet to be scheduled. At sentencing, Alvarez-Valdez faces a federal prison sentence of not less than five years and not more than 40 years. Alvarez-Valdez will be deported after serving his prison sentence.
This case was investigated by HSI’s Las Cruces office and the CBP at the Santa Teresa Port of Entry, and is being prosecuted by Assistant U.S. Attorneys Brock Taylor and Mark Saltman of the U.S. Attorney’s Las Cruces Branch Office.
Federal Grand Jury Indicts Man on Conspiracy to Transport Illegal AliensRead the Press Release
Defendant Also Charged with Illegal Reentry After Deportation
DALLAS — A federal grand jury in Dallas returned a three-count indictment today that charges Ignacio Garcia, 32, with one count each of conspiracy to transport illegal aliens, transporting illegal aliens and illegal reentry after deportation, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Garcia has been in custody since his arrest on June 11, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The indictment alleges that on June 11, 2013, Garcia conspired to transport, by means of a motor vehicle for the purpose of commercial advantage and private financial gain, aliens who entered and remained in the U.S. The indictment further alleges that on June 11, 2013, Garcia, an alien, was in the U.S., having been deported and removed from the U.S. in March 2011. Public documents, filed in U.S. District Court for the Southern District of Texas, note that Garcia was convicted of transporting undocumented aliens and sentenced in November 2010 to 13 months imprisonment, to be followed by deportation.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. Upon conviction, however, the conspiracy count and the substantive transportation of illegal aliens count each carry a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. The illegal reentry count, as charged, carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine.
The case is being investigated by U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.
Fayette Co. Man Who Previously Pleaded Guilty to Child Pornography Charges Indicted by A Federal Grand Jury for Failing to Appear for SentencingRead the Press Release
CHARLESTON, W. Va. – A Fayette County man who previously pleaded guilty to possession of child pornography charges was indicted on June 18 by a federal grand jury sitting in Huntington for allegedly failing to appear for a May 2012 sentencing hearing, announced U.S. Attorney Booth Goodwin. Brett David Bowyer, 34, of Scarbro, Fayette County, W.Va., was charged with one count of failing to appear for sentencing as required by the conditions of his release.
Bowyer failed to appear for sentencing that was scheduled for May 30, 2012 in Bluefield, Mercer County, W.Va. Bowyer previously pleaded guilty in October 2011 to possession of child pornography.
On June 12, 2013, Bowyer was arrested in Florida after being stopped for failing to change lanes for a Brevard County Sheriff’s deputy whose vehicle had its emergency lights flashing.Bowyer faces up to an additional five years in prison and a $250,000 fine if convicted of the charge contained in the indictment.
The United States Marshals Service conducted the investigation. Assistant United States Attorney Lisa Johnston is in charge of the prosecution.
This case is being prosecuted as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
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
Edgewater, Maryland Couple Indicted in Scheme to Defraud Sba Disadvantaged Small Business Program and for Filing False Tax ReturnsRead the Press Release
Alleged to Have Fraudulently Obtained Over $50 Million in Government Contracts
Greenbelt, Maryland - A federal grand jury today indicted Vernon J. Smith III, age 61, and his wife, Georgia Smith, age 52, both of Edgewater, Maryland, on charges related to schemes to fraudulently seek federal contracts under a Small Business Administration program to assist socially and economically disadvantaged small businesses; and to file false tax returns.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration Inspector General Peggy E. Gustafson; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and General Services Administration Inspector General Brian D. Miller.
“The 8(a) Business Development Program offers significant benefits to eligible small businesses and helps small, disadvantaged businesses compete in the marketplace,” said Inspector General Peggy E. Gustafson of the Small Business Administration. “Preferences for federal contract awards must not be given to persons who lie in order to claim eligibility. We appreciate the support of our law enforcement partners to bring this indictment forward.”
“Individuals who intentionally do not report all of the income earned from businesses they own violate U.S. tax law,” said Thomas J Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “IRS Criminal Investigation is committed to maintaining the integrity of our tax system and ensuring that everyone pays their fair share of taxes.”
According to the 11 count indictment, in August 1999, Vernon Smith caused Platinum One Contracting, a roofing and construction company, to be incorporated. At the time, Smith also owned less than 50% of Capitol Contractors, another roofing and construction company. Capitol Contractors participated in the SBA’s Section 8(a) program, which provides assistance to socially and economically disadvantaged small businesses, including help in obtaining federal contracts. Smith arranged for Anthony Wright, an African-American who was a former roofer and project manager at Capitol Contractors to own 60% of Platinum One and Smith’s son to own the remaining 40% of the corporation. Vernon Smith received the title of senior vice president and Georgia Smith was in charge of accounting and maintaining Platinum One’s books and records. In March 2002, Capitol Contractors was no longer eligible to participate in the Section 8(a) program and Vernon Smith became the company’s president and sole owner, with his wife, Georgia Smith, in charge of accounting and maintaining the company’s books and records.
The indictment alleges that from August 1999 to June 2013, Vernon J. Smith III and Georgia Smith, conspired to defraud the SBA by concealing that Vernon J. Smith controlled Platinum One’s operations, not Anthony Wright. For example, the indictment alleges that Platinum One’s Section 8(a) application did not reveal that Vernon and Georgia Smith had personally guaranteed bonding, bank loans and lines of credit for Platinum One and that Platinum One paid millions of dollars to the Smiths. According to the indictment, these payments included salary, payments to Capitol Contractors; payments to casinos on behalf of Vernon and Georgia Smith; and personal charges by Vernon and Georgia Smith to Platinum One’s credit cards. Based on the fraudulent application, the SBA approved Platinum One for participation in the Section 8(a) program. The indictment alleges that as a result, Platinum One received more than $50 million in contracts from the federal government under the Section 8(a) program, to which it was not entitled.
According to the indictment, the Smiths also caused more than $1 million, which had been transferred from Platinum One to their bank accounts and to casinos on their behalf, to be falsely recorded in Capitol Contractors’ books and records as corporate expenses paid for subcontractors, and concealed this fact from their tax preparer. As a result, the indictment alleges that their tax preparer prepared corporate tax returns for Capitol Contractors which falsely overstated the company’s expenses, and prepared personal income taxes for the Smiths which falsely understated their taxable income, thereby falsely understating the amount of taxes owed to the IRS.
The defendants face a maximum sentence of five years in prison for the conspiracy; and three years in prison for making and subscribing a false tax return and for aiding and assisting in the preparation of false tax returns. Vernon J. Smith III also faces a maximum of 20 years in prison for each count of wire fraud. No court appearance has been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Anthony Wright, age 42, of Bowie, Maryland, pleaded guilty on June 18, 2013, to his role in the scheme and is scheduled to be sentenced on September 30, 2013.
United States Attorney Rod J. Rosenstein praised the SBA Office of Inspector General; Defense Criminal Investigative Service; IRS Criminal Investigation; and the GSA Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Gregory R. Bockin and Trial Attorney Kenneth C. Vert of the U.S. Department of Justice Tax Division, who are prosecuting the case.
East St. Louis Woman Sentenced for Cocaine DistributionRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced that Lucille G. Brim, 42, of East St. Louis, Illinois, was sentenced today in federal district court to 57 months in prison for Possession With Intent to Distribute Cocaine.
Brim pled guilty to the federal charge on March 18, 2013. She has been confined in federal custody since her arrest on December 12, 2012.
At her change of plea hearing last March, Brim admitted possessing six ounces of cocaine when her car was stopped by Metropolitan Enforcement Group Southwestern Illinois (MEGSI) officers in East St. Louis on November 29, 2011. Brim also admitted that the cocaine which she possessed had been intended for sale.
Brim’s new sentence will be served concurrently with an unrelated 30 month sentence which Brim received in United States District Court on August 31, 2012. In the earlier federal case, Brim was sentenced for Distribution of Crack Cocaine and for Maintaining Drug-Involved Premises. After Brim completes her federal prison sentences, she will be required to complete a three year term of supervised release.
The investigation that resulted in Brim’s arrest and conviction was conducted by the Drug Enforcement Administration, MEGSI, the Illinois State Police, and the St. Clair County Sheriff’s Department.
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Dakota, Ill., Man Charged in Alleged $120,000 Charity Fraud SchemeRead the Press Release
ROCKFORD — A Dakota, Ill., man was arrested today on federal mail fraud charges relating to his operation of two purported charities. In an indictment filed yesterday, CLIFFORD J. EDWARDS, JR., 33, formerly of Loves Park, Ill., was charged with 20 counts of mail fraud for allegedly defrauding victims out of more than $120,000 in charitable donations that the victims were told would be used to benefit children with cancer, under-privileged children, and children with cleft palates and facial deformities.
Edwards pleaded not guilty at his arraignment today and was released on his own recognizance. A status hearing was scheduled for Aug. 22 in U.S. District Court in Rockford.
According to the indictment, Edwards established and operated two supposed charitable entities: Helping Out, LLC, also known as “Helping Out,” and the Smiles for Kids Foundation, also known as “Smiles for Kids,” “the Smiles for Kids Foundation, Inc.,” “the Smiles 4 Kids Foundation,” and “Smiles 4 Kids.” Edwards ran these entities from locations in Rockford, Loves Park, and Dakota, Ill. The indictment alleges that Edwards and his agents made telemarketing type phone calls on behalf of Helping Out and Smiles for Kids. During these phone calls, Edwards and his agents solicited donations by claiming that Helping Out and Smiles for Kids provided benefits to children with cancer, under-privileged children, and children with cleft palates and facial deformities. It is further alleged that Edward mailed pledge statements, sponsor confirmations, and return envelopes addressed to Helping Out and Smiles for Kids, to the individuals who agreed to make donations. These individuals then mailed their personal checks back to Helping Out and Smiles for Kids in the return envelopes.
The indictment charges that, instead of using the donated funds to benefit children as promised, Edwards used the funds to pay his own personal expenses and to pay fund-raising costs. According to the indictment, Edwards conducted this fraud from at least June 2010 through June 2013.
Each count of mail fraud carries maximum penalties of 20 years in prison and a $250,000 fine, or an alternate fine totaling twice the loss or twice the gain, whichever is greater, a period of supervised release of up to 3 years following imprisonment, and restitution. If convicted, the Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines, as well as restitution.
The case was investigated by the United States Postal Inspection Service in Chicago. The investigation was conducted under the auspices of the Financial Fraud Enforcement Task Force, which includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit: www.StopFraud.gov.
The arrest and indictment were announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Pete Zegarac, Inspector-in-Charge of the Chicago Division of the United States Postal Inspection Service.
Members of the public are reminded that a criminal indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt of the defendant beyond a reasonable doubt.
The government is being represented by Assistant U.S. Attorney Scott A. Verseman.
Indictment
Charlote Woman Sentenced to 5 Years in Prison for $650,000 Medicaid Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – Chief U.S. District Court Judge Frank D. Whitney sentenced a Charlotte woman on Tuesday, June 18, 2103, to serve 60 months in prison and two years under court supervision for defrauding Medicaid of $650,000, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Charlotte Elizabeth Garnes, 39, of Charlotte, was also ordered to pay $792,184.52 in restitution.
U.S. Attorney Tompkins is joined in making today’s announcement by Attorney General Roy Cooper, who oversees the North Carolina Medicaid Investigations Division (MID), and Derrick Jackson, Special Agent in Charge, Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Atlanta Region.
In sentencing the defendant, Judge Whitney emphasized that the crime had numerous victims, including not only the federal and state governments who fund Medicaid, but also the children and patients whose names and identities were stolen. Judge Whitney observed, “Now they have medical records out there that are outright fraudulent” and noted that the defendant and her co-conspirators not only stole from the taxpayers “but also harm[ed] young men and young women.”
In February 2013, a Charlotte jury convicted Garnes of health care fraud conspiracy, obstruction of official proceedings and false statements relating to health care matters. According to evidence presented at trial and yesterday’s sentencing hearing, Garnes was a Licensed Professional Counselor approved by Medicaid to provide mental and behavioral health services to qualified individuals. Trial evidence established that Garnes claimed to have personally provided mental health services to Medicaid recipients when in fact she did not. Evidence showed that Garnes conspired with others to permit unqualified individuals to submit claims to Medicaid under Garnes’ Medicaid number for therapy services purportedly provided by those individuals. In reality, most of the services were never provided. At Garnes’ trial numerous Medicaid recipients or their parents testified that they or their children never received the therapy services Garnes claimed to have provided.
According to trial evidence, Garnes kept 30% of the paid out Medicaid reimbursements and distributed the remainder to her co-conspirators. From March 2009 to April 2011, Medicaid paid Garnes and her company, Charlotte’s Insight, Inc., approximately $740,349, and approximately 90% of that amount ($666,062) was based upon false claims for services that Garnes did not provide. During trial, the government established that for many of the claimed dates of services Garnes was outside of the country, including in Germany, working on a government contract. The evidence also established that Garnes routinely billed for more than 24 hours of therapy services in a single day, including providing 69 hours of individual therapy services in a single day in December 2009.
Trial evidence demonstrated that Garnes used the fraud proceeds to purchase a Mercedes-Benz vehicle and plastic surgery.
In making today’s announcement, U.S. Attorney Tompkins stated, “Garnes’ first mistake was to steal from Medicaid. Her second mistake was to think she would not get caught. Today’s sentence is a stark warning to those who believe that committing healthcare fraud will not land them in prison. Our District’s Health Care Fraud Task Force consists of a team of determined prosecutors and investigators committed to going after anyone who steals money from taxpayer supported programs put in place to cover the medical needs of needy North Carolinians.”
“Our attorneys and investigators are working closely with our federal partners to find Medicaid violators and make them pay,” Attorney General Roy Cooper said. “Medicaid fraud wastes taxpayers’ money, squanders funds that should go to needed care, and drives up health care costs for everyone. Cases like this one will help discourage other health care providers from cheating.”
Following the sentencing hearing, Garnes was remanded to the custody of the U.S. Marshals Service. She will be transferred into the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation was handled by HHS-OIG and MID. The prosecution of the case is handled by Assistant U.S. Attorneys Kelli Ferry and Jenny Grus Sugar of the U.S. Attorney’s Charlotte Office.
The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
Capital District Men Charged in Conspiracy to Provide Material Support to TerroristsRead the Press Release
Scheme included creation of a remotely operated X-ray radiation emitting device designed to kill humans silently
ALBANY, NEW YORK - United States Attorney Richard S. Hartunian and Special Agent in Charge Andrew Vale of the Federal Bureau of Investigation, Albany Division, today announced that Glendon Scott Crawford, age 49, of Galway, New York and Eric J. Feight, age 54, of Hudson, New York have been arrested and charged with conspiracy to provide material support to terrorists in violation of 18 U.S.C. § 2339A. The arrests followed a lengthy investigation by the Albany FBI Joint Terrorism Task Force that began in April 2012 when authorities received information that Crawford had approached local Jewish organizations seeking out individuals who might offer assistance in helping him with a type of technology that could be used against people he perceived as enemies of Israel. If convicted, each faces a maximum sentence of fifteen years imprisonment, a $250,000 fine and a term of supervised release up to five years following any period of incarceration.
Crawford and Feight are scheduled to appear today at 1:30pm before Magistrate Judge Christian F. Hummel in U.S. District Court in Albany, New York.
As charged in a Complaint1 filed in U.S. District Court in Albany, the essence of the defendants’ scheme was the creation of a mobile, remotely operated, radiation emitting device capable of killing targeted individuals silently with lethal doses of X-ray radiation. The defendants plotted to use this device against unwitting victims who would not immediately be aware that they had absorbed lethal doses of radiation, the harmful effects of which would only appear days after the exposure. This was an undercover investigation and, unbeknownst to the defendants, the device that the defendants designed and intended to use was rendered inoperable at all times and posed no danger to the public.
United States Attorney Richard S. Hartunian stated, “This case demonstrates how we must remain vigilant to detect and stop potential terrorists, who so often harbor hatred toward people they deem undesirable. We give special thanks to those who quickly alerted law enforcement authorities to this devious plan. I also commend the members of the Albany FBI Joint Terrorism Task Force for their unwavering commitment over the past 14 months to uncover the details of this plot, before anyone could be harmed bringing about today’s arrests.”
Special Agent in Charge Andrew Vale stated, “I would like to thank all members of our Joint Terrorism Task Force for their continued commitment in ensuring the safety of our community against all threats. It is the obligation of the FBI and our law enforcement partners to protect the public when individuals create plans to commit violent acts such as those charged today. I would like to stress that operations to thwart violent plots are only successful with the cooperation of members of the public and with collaboration among federal, state and local agencies.”
New York State Police Superintendent Joseph A. D’Amico said, “The interception of this alleged terrorist activity would not have been possible without the determination and cooperation between state police investigators and the FBI Joint Terrorism Task Force. This investigation revealed unthinkable plotting and planning of terrorist activity that targeted unsuspecting innocent citizens. We remain committed to ensuring the safety of all citizens and will work diligently to identify these types of threats and stop those who seek to cause harm.
The charges today resulted from a long-term investigation conducted by the Albany FBI Joint Terrorism Task Force, which includes the Department of Homeland Security, New York State Police, Albany Police Department, Troy Police Department, and New York City Police Department. The United States Attorney’s Office also acknowledged the assistance of the Criminal Division and National Security Division of the United States Department of Justice. The case is being prosecuted by Assistant United States Attorneys Stephen Green and Richard Belliss, and Counterterrorism Section Trial Attorney Joseph Kaster.
Further questions or inquiries may be directed to Executive Assistant United States Attorney John G. Duncan at 518-431-0247.
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1The allegations contained in the Complaint are mere accusations and the defendants are presumed innocent unless and until proven guilty in a court of law.
California Man Pleads Guilty to Misrepresenting His Jewelry as Produced by an IndianRead the Press Release
ALBUQUERQUE – Andrew Gene Alvarez, 60, of Wofford Heights, Calif., pleaded guilty this morning to a misdemeanor information charging him with misrepresenting that jewelry he made and offered for sale was made by an Indian. After entering his guilty plea, Alvarez was sentenced to 30 months of probation to be followed by a year of supervised release. As part of his sentence, Alvarez is prohibited from representing that any jewelry he produces is of Indian origin or Indian produced.
Alvarez was indicted in Sept. 2012, and charged with violating the Indian Arts and Crafts Act, 18 U.S.C. § 1159, by falsely representing that jewelry he made and offered for sale was produced by an Indian. According to the indictment, Alvarez made these misrepresentations in May 2011, during the Native Treasures Show at the Santa Fe Community Convention Center.
According to court filings, the FBI initiated an investigation into Alvarez in May 2010, after receiving a referral from the Indian Arts and Crafts Board (IACB) of the U.S. Department of the Interior. The IACB asserted that Alvarez was a prominent jeweler who represented himself as alternatively Mescalero, Apache, Colville and Mayo Indian and marketed his jewelry at the Santa Fe Indian Market, as well as nationally at high-profile Indian arts and crafts events. The IACB also asserted that after due inquiry, it determined that Alvarez was not an enrolled member of a recognized Native American tribe who was entitled to market his work in any manner which suggested that his work was an Indian product.
In May, 2010, Alvarez registered as an exhibitor at the Native Treasures Indian art show in Santa Fe and identified himself as “Andrew Redhorse Alvarez” and as a “Colville/Apache” Indian. During the art show, Alvarez told an FBI agent who did not identify himself as a law enforcement officer that his father was Colville and his mother was Apache. Thereafter, the FBI agent learned that Alvarez told an IACB employee that his heritage was Mescalero Apache, Colville and Mayo during the Santa Fe Indian Market in Aug. 2010.
In May 2011, an FBI agent and a National Park Service criminal investigator made an undercover purchase of jewelry from Alvarez at the Native Treasures show in Santa Fe, where the program specified Alvarez’s tribal affiliation as Colville/Apache and his artistic medium as jewelry. While the officers examined Alvarez’s jewelry, they engaged Alvarez in conversation about his tribal affiliation, the nature of tribal registration, his family background, the Native American jewelry business and the Indian Arts and Crafts Act. When the criminal investigator purchased three pieces of jewelry from Alvarez, Alvarez included three of his business cards on which he had written descriptions of the jewelry and his purported tribal affiliation as “Apache/Colville.”
Court records reflect that Alvarez’s birth certificate identifies both his parents as White with no reference to Indian blood or ancestry. Other official records reflect that Alvarez’s maternal grandparents are of Mexican descent.
The Indian Arts and Crafts Act prohibits the offer or display for sale, or the sale of any good in a manner that falsely suggests that it is Indian produced, an Indian product, or the product of a particular Indian and Indian tribe. It is a “truth-in-advertising law designed to prevent products from being marketed as ‘Indian made, when the products are not, in fact, made by Indians as defined in the Act.” The Indian Arts and Crafts Board was created by the Indian Arts and Crafts Act of 1935 to promote the economic development of American Indian and Alaska Natives through the expansion of the market of authentic Indian arts and crafts products.
The case was investigated by the FBI with assistance from the National Parks Service and the Department of the Interior’s Indian Arts and Crafts Board, and was prosecuted by Assistant U.S. Attorney Paul H. Spiers.
Cabell County Man Indicted by Federal Grand Jury on Illegal Prescription Painkiller Possession ChargeRead the Press Release
CHARLESTON, W.Va. – A Cabell County man was indicted on June 18 by a federal grand jury sitting in Huntington on drug charges. According to a single-count indictment, Eric Lavell Minter, 28, of Huntington, allegedly possessed oxycodone with intent to distribute on May 20, 2013.
Minter faces up to 20 years in prison if convicted.
The investigation was conducted by the DEA and the Huntington Police Department. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
The matter is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Note: The charge contained in the indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
Click here to view a copy of the indictment
Bus Company and Two Individuals Indicted in Bus CrashRead the Press Release
HOUSTON – Angel De La Torre, 64, and Carlos Ortuno, 52, both of Houston, have been taken into federal custody on charges related to the crash of a passenger bus near Sherman on Aug. 8, 2008, United States Attorney Kenneth Magidson announced today.
The sealed indictment, returned May 30, 2013, was unsealed this afternoon as De La Torre made his initial appearance in federal court before U.S. Magistrate Stephen Smith. Ortuno is set for an appearance tomorrow morning.
De La Torre and his bus company, Angel Tours, have been charged with one count of conspiracy to make false statements, four counts of making false statements and one count of operating a commercial motor vehicle after being placed out of service. Ortuno, an employee of Angel Tours, is charged with one count of conspiracy to make false statements and two counts of making false statements.
The indictment alleges that the defendants made false statements in an Application for Motor Carrier Authority, Form OP-1, and in an Application for U.S. DOT Number, Form MCS-150, filed with the U.S. Department of Transportation, Federal Motor Carrier Safety Administration (FMCSA). De La Torre and Angel Tours also allegedly operated a commercial motor vehicle after being placed out of service due to an unsatisfactory safety rating following a FMCSA inspection that allegedly uncovered numerous record keeping and safety violations.
De La Torre was the president and principal director of Angel Tours, according to the indictment. As such, his duties allegedly included the overall operational and financial management of Angel Tours, including the direct supervision of its employees and independent contractors to ensure its commercial motor vehicle operations were in compliance with FMSCA’s rules and regulations. Additional duties allegedly included scheduling and dispatching the company’s bus drivers on trips and monitoring their locations as well as their fitness to operate a commercial motor vehicle to be in compliance with FMSCA regulations.
According to the indictment, De La Torre had operated a passenger-carrying commercial motor vehicle business since 1994 until on or about Aug. 8, 2008. On that date, the indictment alleges an Angel Tours bus carrying 55 passengers from Houston to Carthage, Mo., crashed on U.S. Highway 75 near Sherman. Seventeen passengers died in the crash and 38 passengers suffered serious to minor injuries.
In May 2008, an FMCSA inspection allegedly uncovered numerous violations. As a result of that inspection, the indictment alleges the FMSCA ordered Angel Tours to cease all interstate transportation on June 23, 2008 - more than two weeks prior to the fatal crash.
Each conviction of conspiracy and/or making a false statement carries as possible punishment up to five years in federal prison and a possible fine of $250,000. If convicted of continuing to operate after and out of service order, De La Torre and Angell Tours further face a one-year term of imprisonment and a $25,000 fine.
The FBI and Department of Transportation - Office of Inspector General investigated. Assistant United States Attorney Mark McIntyre is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Buffalo Man Sentenced for Heroin ConspiracyRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Antonio Almonte, 57, of Buffalo, N.Y., who was convicted of conspiring to possess and distribute more than one kilogram of heroin, was sentenced by U.S. District Judge Richard J. Arcara, to 70 months in prison.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that a criminal investigation began following a traffic stop and search conducted by the Ohio State Highway Patrol in March 2012. Law enforcement officers found 2.4 kilograms of heroin in a truck and trailer, which was en route from Chicago to Buffalo. Almonte, co-defendant Luis Vazquez, and others were transporting the kilograms of heroin from Chicago for distribution in the Buffalo area.
On May 24, 2013, Luis Vazquez was sentenced by Judge Arcara to 51 months in prison for conspiring to possess and distribute more than one kilogram of heroin.
The sentencing is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, and the Ohio State Highway Patrol, under the direction of Colonel John Born.Brookings Man Pleads Guilty to Unlawful Taking of Migratory BirdsRead the Press Release
United States Attorney Brendan V. Johnson announced that Jaron Anderson, age 22, of Brookings, South Dakota appeared before U.S. Magistrate Judge John E. Simko on June 17, 2013 and pled guilty to Count V of the Information that charged him with Unlawful Taking of Migratory Birds and Lacey Act violations.
The maximum penalty upon conviction is 1 year of imprisonment, a $100,000 fine, or both; 1 year of supervised release; an additional year of supervised release upon revocation; and a $25 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from an incident wherein Anderson, along with a group of friends known as “Team Those Guys,” hunted between November 24, 2012 and November 29, 2012 in Miner County, South Dakota. Anderson illegally killed 65 geese using an electronic device. Anderson admitted he knew it was illegal to use said device while goose hunting during that time of the year. After killing the geese, they were transported from the field to various locations by Anderson and others in violation of federal law.
The investigation was conducted by the U.S. Fish & Wildlife Service. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Anderson was released on bond pending sentencing which has been set for August 19, 2013.
Boston Man Sentenced to Four Years in Prison for Gun PossessionRead the Press Release
BOSTON - A Boston man was sentenced late yesterday in federal court for being a previously convicted felon in possession of a firearm.
Emmanuel Mervil, 32, was sentenced by U.S. District Judge Joseph L. Tauro to 48 months in prison to be followed by three years of supervised release. Mervil pleaded guilty on January 7, 2013.In October 2007, Boston Police responded to a 911 call of an armed domestic assault. Upon arrival, the officers were directed to a third floor area where they observed Mervil attempting to climb out the window. Mervil, armed with a firearm, was ordered back into the room and taken into custody. He was found in possession a loaded 9mm semi-automatic handgun.
Mervil was originally arrested and arraigned in the West Roxbury District Court. He was released on bail and defaulted on a court appearance. In 2008, Mervil, a previously convicted felon, was charged in United States District Court where an arrest warrant was issued. The United States Marshal’s Service located and arrested him in March 2012 as he exited a motel in Norwood.
United States Attorney Carmen M. Ortiz; Kenneth Croke, Acting Special Agent in Charge of the Bureau of Alcohol Tobacco, Firearms and Explosives, Boston Field Division; Boston Police Commissioner Edward Davis; and United States Marshal John Gibbons made the announcement today. The case was prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
Armed Drug Dealer Sentenced to More Than 10 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Miguel Eduardo Silva, 20, of Charlotte, was sentenced on Tuesday, June 18, 2013, by U.S. District Judge Max O. Cogburn, Jr. to serve 127 months in prison, to be followed by three years of supervised release for drug trafficking and firearms offenses, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
Brock D. Nicholson, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Georgia and the Carolinas and Chief Rodney Monroe of the Charlotte-Mecklenburg Police Department (CMPD) join U.S. Attorney Tompkins in making today’s announcement.
In April 2012, a superseding criminal indictment charged Silva with one count of possession with intent to distribute marijuana, one count of attempt to distribute marijuana and one count of use of a firearm in furtherance of such drug trafficking crimes. According to evidence presented at Silva’s trial and yesterday’s sentencing hearing, Silva had arranged a drug deal involving the sale of $60 worth of marijuana to a buyer. Trial evidence established that on the evening of October 3, 2011, the defendant and the buyer met at the parking lot of an apartment complex in Charlotte. The buyer got into the rear seat of Silva’s vehicle, but instead of purchasing the marijuana, the buyer attempted to rob at gunpoint Silva and another front seat passenger of their drugs and money. Court records show that in response, Silva pulled a handgun and shot and killed the buyer. A federal jury convicted Silva on all counts, in September 2012.
In sentencing Silva, Judge Cogburn acknowledged the inherent danger that exists whenever guns and drugs are intertwined.
Silva has been in federal custody in the Western District of North Carolina since his arrest in January of 2012. Upon designation of a federal facility, he will be transferred into the custody of the Federal Bureau of Prisons. Federal sentences are served without the possibility of parole.
The federal investigation was led by HSI with the assistance of CMPD. The prosecution for the government was handled by Assistant U.S. Attorney J. George Guise of the U.S. Attorney’s Office in Charlotte.
Armando Hernandez-Vaca 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, ARMANDO HERNANDEZ-VACA, a 25-year-old resident of Billings, was sentenced to a term of:
Prison: 70 months
Special Assessment: $100
Supervised Release: 5 years
HERNANDEZ-VACA 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 October of 2010, the FBI Safe Streets Task Force (BSSSTF) received information about a large scale methamphetamine distribution organization operating in Yellowstone County.
In the spring of 2011, law enforcement began performing electronic surveillance on C.M., an individual living in Billings. Investigators discovered that C.M. began supplying the larger methamphetamine organization in late 2010 with methamphetamine after the prior source of supply had a run in with law enforcement.
During the investigation law enforcement learned that HERNANDEZ-VACA delivered methamphetamine to C.M., his co-conspirator, D.M., and several other individuals from approximately April 2011 to October 2011. HERNANDEZ-VACA regularly transported two to three pounds of methamphetamine per trip during his involvement in the conspiracy.
In approximately July of 2011, C.M. was incarcerated on non-drug related charges. D.M. took over the distribution of methamphetamine and collection of money for the organization. HERNANDEZ-VACA also came back to Billings during the same time to bring more methamphetamine and to make sure D.M. could continue the distribution of methamphetamine in the area. Following C.M.'s arrest, HERNANDEZ-VACA became more involved in the actual distribution of methamphetamine to C.M.'s network of distributors and began to collect drug debts from C.M.'s customers.
During the course of his involvement in the conspiracy, HERNANDEZ-VACA distributed over 500 grams of a mixture containing a detectable amount of methamphetamine from places outside of the state of Montana into the Yellowstone County area.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that HERNANDEZ-VACA will likely serve all of the time imposed by the court. In the federal system, HERNANDEZ-VACA does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Billings Big Sky Safe Streets Task Force.
Alton Man Pleads Guilty to Firearm OffenseRead the Press Release
On June 19, 2013, Brian L. Edelen, a 24-year old Alton, Illinois, man pled guilty in federal district court, in East St. Louis, to unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Edelen is scheduled for sentencing on September 23, 2013, at which time he faces a maximum potential sentence of 10 years in prison and a fine of up to $250,000, not more than 3 years of supervised release after his prison term, and a mandatory special assessment of $100. Edelen also agreed to forfeit the firearm.
Court proceedings revealed that on April 26, 2012, law enforcement officials conducted a parole compliance check at Edelen’s residence in Alton, Illinois. During the check, a semi-automatic pistol was located hidden in the bottom of a trash can in Edelen’s bedroom. Edelen was placed under arrest and admitted to having a firearm in the home.
This case was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosive and the Illinois Department of Corrections, Parole Division. This case is assigned to Assistant United States Attorney Daniel T. Kapsak for prosecution.
45 Defendants Charged on Gun, Drug Trafficking and Related Offenses Following Undercover InvestigationRead the Press Release
Undercover ATF agents purchased, seized 189 firearms during “Operation Pulaski”
SAVANNAH, GA – 17 federal indictments, unsealed today in federal court, have charged 33 defendants with federal firearm, drug trafficking or other federal offenses. Four defendants were charged by Chatham County authorities on state firearm and drug offenses. Additionally, eight defendants were previously indicted and prosecuted in 2012. All of the federal and state charges derive from a lengthy undercover investigation dubbed “Operation Pulaski.”
The United States Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Savannah-Chatham Metropolitan Police Department (SCMPD) initiated Operation Pulaski in late 2011. During the operation, undercover ATF agents purchased guns and drugs from multiple criminal organizations whose scope ranged from regional to international. The undercover agents were able to infiltrate these organizations over a period of time, ultimately purchasing 189 firearms, including handguns, assault rifles, sawed-off shotguns and machine guns; illegal drugs, including over 200 grams of heroin and more than 4 kilograms of cocaine; and stolen vehicles. The investigation revealed that the vehicles were stolen in the New York City area and then transported to the southeastern United States for resale or for shipment abroad for resale. Agents worked in cooperation with the National Insurance Crime Bureau for the return or re-designation of the automobiles recovered in the investigation. 26 of the individuals who sold firearms and drugs to the undercover agents are alleged to be convicted felons. 11 of the individuals investigated are believed to be illegal aliens. In addition, a number of the guns purchased by undercover agents were previously reported stolen.United States Attorney Edward J. Tarver stated, “The Department of Justice works tirelessly to protect the personal safety and the property of its citizens. Operation Pulaski was a relentless effort to remove illegal guns from the streets of our communities and to halt the illegal sale of guns, especially where the transactions were being conducted by violent criminals. This undercover operation serves as notice to the criminal element that if you traffic in firearms, drugs, or stolen cars in this district, you will be apprehended and you will be prosecuted.”
“This operation is the essence of great law enforcement collaboration and teamwork in removing illegal firearms and narcotics from our communities,” said Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Christopher Shaefer. “ATF and our law enforcement partners stay committed to identifying, apprehending, and prosecuting dangerous criminals and this investigation exemplifies this commitment.”SCMPD Chief Willie Lovett said, “The success of Operation Pulaski was achieved through the coordinated efforts of Metro, the U.S. Attorney and ATF and that cooperation of the three agencies will continue in other operations. The numbers of guns, stolen vehicles and drugs seized in Pulaski are more than significant; they are staggering, considering the criminal history of most of those arrested. I have no doubt those weapons would have been used against innocent victims and the drugs would have ruined lives. We are very appreciative of the agencies that helped make this possible and look forward to this continued relationship.”
Mr. Tarver praised the exemplary partnership between the ATF and the Savannah-Chatham County Metropolitan Police Department, and noted that additional investigative support was provided by United States Immigration and Customs Enforcement (ICE), including Customs and Border Patrol, the National Insurance Crime Bureau, and the United States Secret Service.Following numerous arrests on Tuesday, June 18, and Wednesday, June 19, initial appearances for several of the federally indicted defendants will be held in United States District Court, Statesboro, Georgia, on June 20, 2013. A listing of the 33 defendants newly indicted on federal charges is attached.
Mr. Tarver stressed that an indictment is only an accusation and is not evidence of guilt. All defendants are entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
Assistant United States Attorneys Cameron Heaps Ippolito and T. Shane Mayes are prosecuting the federal cases for the United States.
For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Operation Pulaski Defendants
NAME
AGE
HOMETOWN
Alejandro Jorge Barrero-Rojas
29
Bolivia
Akeem Jamal Edwards
22
Savannah, GA
Alvon Mitchell
33
Savannah, GA
Anthony Solis-Reyes
25
Honduran National
Augustin Rubio-Garcia
31
Hardeeville, SC
Cedric Austin
26
Savannah, GA
Demetrius Mumford
28
Savannah, GA
Derrick Stephens
35
Atlanta, GA
Eduardo Cruz-Camacho
32
Savannah, GA
Naquan Trell Elliot
19
Savannah, GA
Eric Dyches
41
Savannah, GA
Hermino Garcia-Rodriguez
25
Garden City, GA
Gustavo Reyes-Sosa
25
Bluffton, SC
Herbert Carter
31
Savannah, GA
Javier Garcia-Rodriguez
29
Garden City, GA
Javier Murillo-Solis
32
Hilton Head, SC
Jeffrey Barnes
50
Savannah, GA
Juan Zapien-Pacheco
26
Hardeeville, SC
Leonardo Moreno-Romero
23
Hardeeville, SC
Luis Alonso
34
Hardeeville, SC
Markus Brown
29
Savannah, GA
Martin Anguiano
45
Ridgeland, SC
Maximigo Ortega
34
Savannah, GA
Michael Holsey
21
Savannah, GA
Miguel Hernandez-Landeros
26
Garden City, GA
Mikael Oliver
18
Savannah, GA
Sonny Vasquez
28
Bluffton, SC
Tyreik Watson
34
Savannah, GA
Walis Parra-Reyes
31
Bluffton, SC
Wendell Brantley
35
Bluffton, SC
Reginald Black
20
Garden City, GA
Roberto Barrero
45
Bolivia
Matthew Vasquez
22
Savannah, GA
18 June 2013
Wichita Man Sentenced for Bank RobberyRead the Press Release
WICHITA, KAN. – A Wichita man has been sentenced to 77 months in federal prison for bank robbery, U.S. Attorney Barry Grissom said today.
Billy L. Wilson, 52, Wichita, Kan., pleaded guilty to one count of bank robbery. In his plea, he admitted that on March 1, 2013, he robbed the Commerce Bank branch at 456 N. Main Street in Wichita. Wilson gave the teller a note saying he was robbing the bank and warning her that he had a gun. He took the money and left the bank.
After surveillance photos taken during the robbery were made public investigators received information identifying Wilson as the robber and saying he lived in an apartment complex in the 800 block of south Hydraulic. Law enforcement officers attempted to locate him and were able to speak to him briefly on the phone. Later that day, he turned himself in at the Sedgwick County Jail.
Grissom commended the Wichita Police Department, the FBI and Assistant U.S. Attorney Lanny Welch for their work on the case.
White River Woman Charged with Simple Assault and Aiding and AbettingRead the Press Release
United States Attorney Brendan V. Johnson announced that Ashley Vanderwalker, age 24, of White River, South Dakota appeared before U.S. Magistrate Judge Mark A. Moreno on June 17, 2013, and pled guilty to Simple Assault and Aiding and Abetting.
The maximum penalty upon conviction is 6 months in custody, a $5,000 fine, or both; and $10 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on April 3, 2011 when Vanderwalker and others assaulted the victim with a bat.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
A presentence investigation was ordered and a sentencing date was set for August 12, 2013. The defendant was released pending sentencing.
Vern Thomas Gardipee Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on June 18, 2013, before U.S. Magistrate Judge Keith Strong, VERN THOMAS GARDIPEE, a 49-year-old resident of Box Elder and an enrolled member of the federally recognized Chippewa Cree Indian Tribe, pled guilty to sexual abuse of a minor. Sentencing has been set for September 25, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Danna R. Jackson, the government stated it would have proved at trial the following:
On April 27 and 28, 2012, GARDIPEE sexually abused a young girl. GARDIPEE got into bed with the victim and sexually abused her. The victim tried to get away from GARDIPEE and eventually got GARDIPEE to stop his advances but not until after sexual contact occurred.
GARDIPEE faces possible penalties of 15 years in prison, a $250,000 fine and lifetime supervision.
The investigation was conducted by the Federal Bureau of Investigation.
Two Defendants Convicted in Manhattan Federal Court of Various Racketeering, Murders, Attempted Murders, Narcotics, and Firearms OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, today announced that ANTHONY BOYKIN and JUSTIN SIMMONS were convicted yesterday in Manhattan federal court of various racketeering, murder, attempted murder, narcotics conspiracy, and firearms offenses following a four-week jury trial before the U.S. District Judge Colleen McMahon. The jury convicted BOYKIN and SIMMONS of charges arising out of their involvement, from 2006 through 2013, in the criminal activities of the Bloods gang (the “Newburgh Bloods”) – a violent street gang that was involved in drug-trafficking and multiple acts of violence, including murders and attempted murders, in Newburgh, New York.
Manhattan U.S. Attorney Preet Bharara said: “The Bloods in Newburgh – including Anthony Boykin, the gang’s leader, and Justin Simmons, a soldier – have laid siege to that city, making victims not only out of those who they shot, stabbed, and killed, but also out of every Newburgh resident who has had to live with the terror wrought by the Bloods’ legacy of drugs and violence. These convictions show that it does not matter if you are at the top of a gang or merely work within it – if you choose to engage in drug-dealing and gang violence, you will be held accountable for your actions and deprived of your liberty.”
According to the Superseding Indictment and evidence admitted at trial:
From 2006 through 2013, BOYKIN was a member, and then leader, of a racketeering enterprise – the Newburgh Bloods. As part of his participation in that enterprise, BOYKIN conspired to murder Lamont Young, a local marijuana dealer, which culminated in Young’s murder on March 4, 2009. He participated in two additional conspiracies to commit murder, which culminated in the vicious attacks of Ishmael Gillian and David Freeman on August 24, 2008 and September 20, 2008, respectively. BOYKIN also robbed a suspected narcotics dealer in August 2009.
From 2007 through 2011, BOYKIN and SIMMONS, a soldier of the Newburgh Bloods, participated in a conspiracy to distribute crack cocaine on Landers Street in Newburgh, New York and throughout the city. They also possessed firearms in connection with their drug trafficking and racketeering activities with the Newburgh Bloods gang.
BOYKIN was convicted of one count of racketeering, one count of racketeering conspiracy, three counts of conspiracy to murder in aid of racketeering, one count of murder in aid of racketeering, one count of assault in aid of racketeering, one count of conspiracy to distribute or possess with intent to distribute 280 grams and more of crack cocaine, and two counts of possessing, using, and carrying a firearm in furtherance of a crime of violence or a drug-trafficking crime. He was acquitted of one count of murder, one count of conspiracy to commit murder, two counts of attempted murder, one count of assault, and two counts of possession, use, and carrying a firearm in furtherance of a crime of violence or a drug-trafficking crime. BOYKIN faces a mandatory minimum sentence of life in prison, and is scheduled to be sentenced on November 14, 2013, at 2:00 p.m. before Judge McMahon.
SIMMONS was convicted of one count of racketeering conspiracy, one count of conspiracy to distribute or possess with intent to distribute 280 grams and more of crack cocaine, and two counts of possession, use, and carrying a firearm in furtherance of a crime of violence or a drug-trafficking crime. He was acquitted of one count of murder, one count of conspiracy to commit murder, one count of assault, and one count of possession, use, and carrying a firearm in furtherance of a crime of violence or a drug-trafficking crime. SIMMONS faces a mandatory minimum sentence of 50 years in prison and a maximum sentence of life in prison. He is scheduled to be sentenced on October 17, 2013, at 4:00 p.m. before Judge McMahon.
Mr. Bharara praised the outstanding efforts of the Hudson Valley Safe Streets Task Force, including the FBI, the City of Newburgh Police Department, the Orange County Sheriff’s Office, and the New York State Police, in connection with this investigation.
Assistant United States Attorneys Michael D. Maimin, Amie N. Ely, and Emil J. Bove III are in charge of the prosecution.
Two Charged for Copper Wire Theft at Sea-Tac AirportRead the Press Release
Two men who allegedly stole thousands of feet of copper wire from runway light towers at Seattle-Tacoma International Airport are in custody facing federal charges, announced U.S. Attorney Jenny A. Durkan. JERAMIE HARMS, 28, will make his initial appearance in U.S. District Court in Seattle today at 1:30 p.m. TIMOTHY LYNCH, 50, is in custody in King County, Washington, on an unrelated charge and will be scheduled for his appearance in the coming weeks. The theft was discovered on February 12, 2013, when a Port of Seattle employee noticed damage to the fence surrounding the runway light structures near South 188th Street and Des Moines Memorial Drive. In total, approximately 7,200 feet of copper cable was stolen from the FAA light towers, rendering them inoperable and potentially posing a threat to airline safety.
According to the criminal complaint unsealed today, HARMS and LYNCH entered a secured area of Sea-Tac airport and removed copper cable from the light towers. HARMS first came to the attention of law enforcement in connection with a King County burglary. While being questioned by law enforcement, information was developed linking HARMS and LYNCH to the wire theft. The copper wire cost more than $77,000 when it was installed in 2008. HARMS was arrested yesterday afternoon.
The men are charged with theft of public property which is punishable by up to ten years in prison and a $250,000 fine.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI Safe Streets Task Force which includes officers from the Port of Seattle Police Department, the Seattle Police Department and the King County Sheriff’s Department. The case is being prosecuted by Executive Assistant United States Attorney Thomas Bates.
Topeka Man Sentenced on Gun, Drug ChargesRead the Press Release
TOPEKA, KAN. – A Topeka man has been sentenced to 30 months in federal prison on federal gun and drug charges, U.S. Attorney Barry Grissom said today.
Terrance Anthony Dean, Jr., 23, Topeka, Kan., pleaded guilty to one count of possession of marijuana with intent to distribute and one count of unlawful possession of a firearm after being charged with a felony. In his plea, he admitted that on Sept. 19, 2011, law enforcement officers were looking for him to serve an arrest warrant. On that day law enforcement officers saw him attempt to sell marijuana. They arrested him after a foot chase. In his car, they found marijuana and a 12 gauge shotgun. He was prohibited from possessing a firearm because he already had been charged in Douglas Country District Court with felony attempted robbery.
The 30-month federal sentence is to be served consecutively to the sentence he is serving in the attempted robbery case.
Grissom commended the Shawnee County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Randy Hendershot for their work on the case.
Three More Defendants Plead Guilty in New Castle Oxycodone Distribution RingRead the Press Release
PITTSBURGH, Pa. - Three residents of New Castle, Pa., pleaded guilty in federal court to a charge of violating the federal drug laws, United States Attorney David J. Hickton announced today.
Christopher Klingensmith, 38; James Cracraft, 39; and Thomas Klingensmith, Jr., 40, pleaded guilty to one count of conspiracy before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that between September 2008 and June 2011, a drug ring operated in the New Castle area, selling to drug users on the street nearly 50,000 highly-addictive narcotic pills containing oxycodone. Christopher Klingensmith was the leader of the drug ring here, which was supplied ocycodone by co-defendant Larry Dorsey from Florida. Dorsey transported an estimated 5,000 to 10,000 oxycodone on each of six trips he made to Western Pennsylvania. Witnesses saw Christopher Klingensmith with cantaloupe-sized bags of oxycodone, containing thousands of pills.
Drug cash was seized during the investigation, including more than $158,000 from a car stopped in North Carolina in September 2010. The car was being driven by co-defendant David Wooley, with Thomas Klingensmith, Jr., as the passenger. Larry Dorsey told an undercover Drug Enforcement Administration (DEA) agent that Christopher Klingensmith had delivered $120,000 in drug proceeds to him on one date.
James Cracraft served as a seller of oxycodone, and as a look-out for the group. Thomas Klingensmith, Jr. assisted his brother in distributing the pills. With 30 mg. oxycodone tablets commonly selling on the street for $25 - 35 per pill, the nearly 50,000 oxycodone distributed in this conspiracy had a street value of between $1.25 million and $1.75 million.
Of the 11 defendants charged in the superseding indictment, nine have now entered guilty pleas, with two others awaiting trial.
Judge Schwab scheduled sentencing for Oct. 15, 2013 at 9:30 a.m. for James Cracraft: Oct. 21, 2013 at 9:30 a.m. for Thomas Klingensmith, Jr.; and Oct. 21, 2013 at 10:30 am for Christopher Klingensmith. The law provides for a total sentence of not more than 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory J. Nescott is prosecuting this case on behalf of the government.
The DEA, the New Castle Police and the Pennsylvania State Police conducted the investigation that led to the prosecution of Christopher Klingensmith, James Cracraft, and Thomas Klingensmith, Jr.
Three Ashland Residents Arrested for Human TraffickingRead the Press Release
Three Ashland residents held a cognitively disabled woman and her child against her will for more than two years and forced her perform manual labor for them, law enforcement officials said.
The conspiracy included beating the disabled woman and her child, threatening the woman with a firearm, threatening to kill the woman and her child, threatening the woman and her child with large snakes, forcing them to sleep in a padlocked room with a large iguana and other actions, according to charges filed in U.S. District Court.
Jordie L. Callahan, 26; Jessica L. Hunt, 31, and Daniel J. Brown, AKA D.J. Brown, 33, were all arrested today and charged with forced labor. Callahan is charged with an additional count of tampering with a witness.
“We are yet again reminded that modern-day slavery exists all around us,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “One of our nation’s core values is freedom, yet this woman and her child were denied freedom for two years. The victims in this case endured violence, threats, sub-human living conditions and other horrific acts.”
“These defendants violated the victim’s most basic civil right, freedom, by exploiting her most basic instinct, the protection of her child,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office. “The FBI continues to aggressively pursue and bring to justice those individuals who abuse and harm innocent members of our community.”
“The streets are a lot safer with these folks locked up,” Ashland Police Chief David Marcelli said. “Cooperation with the FBI and U.S. Attorney’s Office was key to the successful arrest of these individuals.”
Ashland County Prosecutor Ramona Rogers said: “We are pleased to cooperate with federal authorities, particularly when it provides for a more severe punishment for these defendants.”
All three are accused of participating in a conspiracy between May 2011 and October 2012 in which they held a woman and her juvenile child in a condition of forced labor and involuntary servitude.
An affidavit from FBI Special Agent Michael Sirohman was filed along with the charges.
The victims in this case are identified only as S.E. and her juvenile child. S.E. suffered from a cognitive disability and received monthly public assistance payments, according to the affidavit.
Callahan and Hunt recruited S.E. and her child to live with them in their two-bedroom apartment in Ashland. Hunt’s four juvenile sons also lived at the house, along with numerous pit bull dogs, large snakes and other reptiles, according to the affidavit.
Callahan and Hunt monitored S.E. and her child’s activities with a baby monitor, according to the affidavit.
Hunt was in possession of all of S.E.’s government benefits cards and the PINs. Hunt normally used nearly all of the money on the cards and rarely gave any money to S.E., according to the affidavit.
Callahan and Hunt forced S.E. to clean the house, do laundry, walk to the store to do their shopping and care for their numerous pit bulls and reptiles. S.E. was timed when she went to the store and was not allowed to bring her child with her, according to the affidavit.
Callahan and Hunt beat S.E. and her child, threatened their lives, denied them food and threatened them with the pit bulls and reptiles, according to the affidavit.
At various points, Callahan threated S.E. with a gun. S.E. and her child initially were forced to sleep on a cement floor in the basement with no mattress. Later they were moved to a room upstairs, again with no bed or mattress. The child was kept in the room all day and at night the room was padlocked to keep S.E. and her child from escaping, according to the affidavit.
S.E. and her child were only allowed to eat canned food or what was left over after Callahan, Hunt and Hunt’s children ate. S.E. was not allowed to feed fruit or vegetables to her child, but Callahan and Hunt ordered S.E. to feed fruit and vegetables to the iguana that freely roamed in their bedroom. On another occasion, S.E. said her child had not eaten all day, but Callahan got a plate of food and gave it to a dog rather than letting them eat, according to the affidavit.
Callahan and Hunt also repeatedly taunted and threatened S.E. and B.E. with injury from the couple’s snakes, including a poisonous coral snake, a ball phython and a Burmese python that weighed 130 pounds, according to the affidavit.
In August 2011, the conspirators slammed S.E.’s hand with a rock in order to obtain pain medication. She was taken to the emergency room and returned with a prescription for pain medication, according to the affidavit.
In December 2011, Callahan and Hunt injured S.E.’s back and then forced her to turn over the prescription for Vicodin she received for her back injury, according to the affidavit.
On another occasion, Callahan kicked S.E. in the hip, and then he and Hunt forced S.E.to turn over the prescription for Vicodin she received for her hip injury, according to the affidavit.
When S.E. attempted to flee the apartment, Brown deceived S.E. into accompanying them in their vehicle and returned her to Callahan and Hunt’s apartment, according to the affidavit.
In October 2011, Callahan and Hunt forced S.E. to hit her child, threatening to inflict much greater physical harm on both if S.E. did not do so. Callahan and Hunt used Callahan’s mobile phone to record S.E. purportedly abusing her child via the baby monitor.
About a year later, S.E. was arrested for shoplifting a candy bar. She asked to be taken to jail, said she was living with Callahan and Hunt and that they “were mean to her,” according to the affidavit.
A police officer went to Callahan and Hunt’s apartment. When the officer advised Callahan that S.E. would not return, Callahan told police he believed S.E. was abusing her child and showed them the mobile phone video from October 2011.
S.E. later told police that Callahan had showed her video recordings of her beating her child after being instructed to do so by Callahan and Hunt. Callahan told S.E. that if she “messed up” or told police about her living conditions, Callahan would show the videos to police and have her daughter taken away, according to the affidavit.
The case was prosecuted by Assistant United States Attorneys Chelsea Rice and Thomas E. Getz following an investigation by the FBI and Ashland Police Department and assistance from the Ashland County Prosecutor’s Office.
If convicted, the defendants’ sentences 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.
A charge 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.
The investigation is ongoing.Thirteen in Custody on Federal Cocaine Charges in Tennessee and AlabamaRead the Press Release
CHATTANOOGA, Tenn. — A total of 13 people from Eastern Tennessee, and Huntsville, Ala., have been arrested by agents of the Drug Enforcement Agency (DEA). All are believed to be part of in a large cocaine trafficking organization out of Fayetteville, Tenn., in Lincoln County.
Calvin Fontaine Hadley, 36, of Fayetteville, Tenn., was arrested in May 2013. On June 17, 2013, 10 additional individuals were arrested in Fayetteville, Tenn. They appeared before U.S. Magistrate Judge Susan K. Lee on June 18, 2013, for initial appearances and arraignments. Those individuals include: Deonzsanique Bryson, 23, Darryl Brown, 51, Tanica Berry, 31, Dominique Brooks, 25, Tony Brown, 22, Ophelia Harper, 61, Jermaine Hicks, 27, Willie Hockett, 25, Jeffery Mires, 36, and Doris Stewart, 57, all from Fayetteville, Tenn.
Two more individuals, Ortegus McCrary, 36, and Terrance Nance, 57, of Huntsville, Ala., were arrested in Huntsville and appeared before a U.S. Magistrate Judge in the Northern District of Alabama, on June 17, 2013. Detention hearings have been set for both on June 20, 2013, in U.S. District Court, Northern District of Alabama.
Others are pending arrest on federal charges. Their names and other pertinent information will be released upon their initial appearance before the U.S. Magistrate Judge.
A jury trial for all of these individuals is scheduled for August 27, 2013, in the U.S. District Court, Eastern District of Tennessee, before Honorable Harry S. Mattice, U.S. District Court Judge.
All were charged by a federal grand jury sitting in Chattanooga, Tenn., with conspiring to distribute, and possess with intent to distribute more than five kilograms of cocaine and more than 280 grams of cocaine base (crack). If convicted of this offense, each faces a minimum of 10 years and maximum of life in prison. Some face additional counts relating to money laundering and cocaine distribution.
This case has been investigated by the DEA, Tennessee Bureau of Investigations, and Lincoln County Sheriff’s Department. Agents and officers from the Bureau of Alcohol, Tobacco, Firearms and Explosives, Department of Homeland Security, Investigations Division, 17th Judicial District Drug Task Force, Fayetteville Police Department and Sheriff’s Departments for Franklin, Giles, and Marshal County, Tenn., and Madison County, Ga., have assisted with the investigation and arrests. Assistant U.S. Attorney Terra Bay is representing the United States in court.
Members of the public are reminded that these are only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Texas Man Pleads Guilty to Corrupt Interference with the IRS Laws and Filing False LiensRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced Fred Neal, Jr., age 80, of Marshall, Texas pled guilty before United States District Judge Billy Roy Wilson to Counts Two and Three in a federal Indictment charging he corruptly interfered with the Internal Revenue Laws and filed false liens against government employees. Count One of the Indictment charging conspiracy to defraud the United States was dismissed. He was not detained.
Neal was indicted on February 2, 2011. The Indictment alleged that Neal and his now deceased wife, Doris, owed over $860,000 in federal income taxes for tax years 1987 to 1994. The Internal Revenue Service (IRS) initiated legal action to collect the taxes owed. In response, Neal and Doris were alleged to have conspired together to file repeated false and fraudulent tax forms to impede the IRS from collecting the debt. The Neals mailed false IRS 1099 tax forms, misrepresenting that the IRS officials, court and other individuals had each received personal income of $7 to $210 million. The letters were sent to targeted "recipients" in Little Rock, in Texas and in the District of Columbia.
The Indictment alleged in Count Two that the Neals attempted to intimidate, harass and attack the financial integrity of government employees and other officials they believed to be party to the legal actions taken to collect the tax debt they owed. This harassment included filing numerous fictitious legal and tax documents meant to attack the personal financial integrity of their targets. These fictitious documents were filed against employees of the IRS, Department of Justice tax attorneys, Arkansas federal judges, a United States Attorney for the Western District of Arkansas and the Secretary of the United States Treasury. Mr. Neal filed fictitious IRS 1099 tax forms affecting more than twenty people. By filing these forms, he misrepresented that the government employees had received personal income reportable to the IRS totaling more than one billion dollars. In addition, Mr. Neal filed false non-performance liens and false Maritime liens against officials totaling more than one billion dollars.
Count Three of the Indictment alleged slander of title against a federal official by filing false liens. Starting in May 2008, the Neals filed in the public record of Arkansas false liens and encumbrances against the real and personal property of officers and employees of the United States on account of their performance of their official duties. The Neals also filed liens against county officials, an insurance executive, banks, and attorneys in Arkansas, Georgia and Texas. Mr. Neal's filing of non-performance liens and fraudulent Maritime liens against 17 federal employees totaled more than one billion dollars.
Neal faces a statutory penalty for corrupt interference of not more than three years imprisonment with a possible fine of up to $250,000 and not more than one year supervised release. The statutory penalty for filing false liens is not more than 10 years imprisonment and a fine of not more than $250,000 or both, followed by not more than three years supervised release.
The investigation was conducted by the Treasury Inspector General for Tax Administration.
St. Paul Felon Indicted for Possessing A Nine-millimeter PistolRead the Press Release
MINNEAPOLIS—A federal indictment unsealed earlier today charges a 32-year-old felon from St. Paul with possessing a nine-millimeter, semi-automatic pistol. The indictment, which was filed on May 7, 2013, charges Desmen Lee Parker with one count of being a felon in possession of a firearm. The indictment was unsealed following Parker’s appearance today in federal court.
The indictment alleges that from an unknown date through July 27, 2012, Parker possessed the pistol. Because he is a felon, Parker is prohibited under federal law from possessing a firearm or ammunition at any time. His prior Hennepin County convictions include receiving stolen property (2001) and being a felon in possession of a firearm (2001). In addition, Parker was convicted in Ramsey County for theft (2000) and receiving stolen property (2006). He was also convicted in Eau Claire County, Wisconsin, for armed robbery in 2007.
If convicted, Parker faces a potential maximum penalty of ten years in prison. Any sentences will be determined by a federal district court judge. This case is the result of an investigation by the Safe Streets Task Force. Safe Streets is a FBI-sponsored task force that focuses on combating violent street crime as well as gang and drug-trafficking offenses. This case is being prosecuted by Assistant United States Attorney Allen A. Slaughter.
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.South Jersey Woman Sentenced to Prison for Defrauding FEMA After Major DisasterRead the Press Release
CAMDEN, N.J. – An Atlantic City, N.J., woman was sentenced today to 27 months in prison for stealing benefit money from FEMA through fraud relating to a presidential disaster declaration for the state of New Jersey after the nor’easter in 2010, U.S. Attorney Paul J. Fishman announced.
Debbie Hicks, 52, previously pleaded guilty to an information charging her with disaster benefits fraud and making false statements to the U.S. Department of Housing and Urban Development. She entered her guilty plea before U.S. District Judge Joseph E. Irenas, who imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Due to FEMA’s size and the large number of victims typically resulting from a disaster, FEMA frequently has been targeted in disaster fraud schemes by individuals or groups seeking FEMA monetary assistance for benefits to which they were not entitled.
On April 12, 2010, Hicks filed an application with FEMA seeking federal rental assistance under FEMA’s Individual Assistance Program, claiming that her apartment in Atlantic City was damaged as a result of the severe storm and was unfit for occupancy.
On April 13, 2010, a FEMA inspector confirmed Hicks’ occupancy and the damage to her rental unit, and declared her apartment uninhabitable. FEMA then awarded Hicks $923 per month in rental assistance. In her application to FEMA Hicks failed to disclose that her rent was being paid by the Atlantic County Department of Family and Community Development.
During the plea hearing, Hicks admitted that she lied on various forms that were sent to FEMA in order to continue receiving money. As a result of the fraud, Hicks received $15,691 in FEMA emergency rental assistance funds to which she was not entitled.
Hicks also admitted that, while she was defrauding FEMA, she lied to the Housing Authority and Urban Redevelopment Agency of the City of Atlantic City, which administers housing funds on behalf of U.S. Department of Housing and Urban Development (HUD). Hicks admitted that, when she applied for Section 8 housing, she failed to tell the housing authority that she was receiving funds from both FEMA and the Atlantic County Department of Family and Community Development. Hicks also admitted she lied about her prior criminal record and the fact that she had used other names and Social Security numbers.
In addition to the prison term, Judge Irenas sentenced Hicks to serve three years of supervised release and ordered her to pay $15,691 in restitution to FEMA and $7,200 to HUD.
U.S. Attorney Fishman credited special agents of the Department of Homeland Security, Office of Inspector General, under the direction of Special Agent in Charge Gregory Null, and special agents of HUD, Office of Inspector General, under the direction of Special Agent in Charge Joseph W. Clarke, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel: Maggie Moy Esq., Assistant Federal Public Defender, Camden
Smith County Snake Expert Guilty of Smuggling Peruvian ReptilesRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 63-year-old Tyler, Texas eco-tourism guide has pleaded guilty to smuggling live snakes into the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
William Lamar pleaded guilty to an Information charging him with importing wildlife taken in violation of foreign law today before U.S. Magistrate Judge John D. Love.
According to information presented in court, on Aug. 29, 2012, Lamar imported seven live snakes that he had purchased at a market in Lima, Peru. Lamar smuggled the snakes in his jacket on flights from Lima to Miami, Florida and then to Dallas/Ft. Worth International Airport. The next day, after TSA agents refused to let him board a commuter plane to Tyler with the snakes, Lamar traveled aboard a ground transport shuttle from DFW to his home in Tyler. Game Wardens went to Lamar’s residence and seized the snakes.
Peruvian law prohibits the exportation of wild live animals coming from the forest or jungle region unless the exporter has a properly issued ministerial order authorizing the export for either scientific investigation or for cultural diffusion. Lamar admitted that he knew that Peruvian law prohibited the unauthorized exportation of wildlife in a jacket without proper authorization.
Lamar faces up to five years in federal prison at sentencing. A sentencing date has not been set.
This case was investigated by the U.S. Fish and Wildlife Service, the Texas Parks and Wildlife Service, the Transportation Security Administration, and the Dallas Fort Worth International Airport Department of Public Safety. This case is being prosecuted by Assistant U.S. Attorney Jim Noble.
Shyann Marie Dupree Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on June 18, 2013, before U.S. Magistrate Judge Keith Strong, SHYANN MARIE DUPREE, a 36-year-old resident of Poplar and an enrolled member in a federally-recognized tribe, pled guilty to burglary. Sentencing has been set for September 25, 2013. She is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
On April 18, 2012, DUPREE broke into a house on the Fort Peck Indian Reservation with three others when they knew the homeowner was out of town. The group stole televisions, jewelry, and other items. DUPREE admitted to entering the house and filling a suitcase with purses, while others removed televisions and placed them in a vehicle waiting outside the house. DUPREE admitted that another individual helped her sell the purses and that DUPREE used the money to buy pills.
DUPREE faces possible penalties of 20 years in prison, a $50,000 fine and 3 years supervised release.
The investigation was a cooperative effort between the Fort Peck Tribes Criminal Investigation Division and the Poplar Police Department.
Scarsdale Woman Indicted for Manufacturing MarijuanaRead the Press Release
An indictment was filed this afternoon in federal court in the Eastern District of New York charging Andrea Sanderlin of Scarsdale, New York, with manufacturing and possessing marijuana with intent to distribute it and maintaining a drug-involved premises. Sanderlin, 45, was arrested on May 20, 2013, when federal agents and detectives seized over 2,800 marijuana plants, large quantities of dried marijuana, and state-of-the-art marijuana growing equipment from a marijuana grow house in Maspeth, Queens.1
The indictment was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Brian R. Crowell, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division; James T. Hayes, Jr., Special Agent-in-Charge, Department of Homeland Security, Homeland Security Investigations (HSI); and Raymond W. Kelly, New York City Police Commissioner.
As charged in the indictment, Sanderlin operated a warehouse in Maspeth, Queens, which contained a sophisticated operation to grow and process marijuana. The warehouse, which was located in a mixed industrial and residential neighborhood, contained state-of-the-art lighting, irrigation, electrical, and ventilation systems to facilitate growing the marijuana. Initial estimates by the DEA indicate that the marijuana in the warehouse at the time of the search was worth in excess of $3 million. The warehouse used unusually high amounts of electricity, in some cases generating bills exceeding $9,000 a month. Law enforcement agents seized the equipment, approximately 2,800 marijuana plants, and large quantities of dried marijuana from the warehouse.
“Sanderlin could have focused her talents on building a legitimate business enterprise to support her family and serve as a role model for her children. Instead, she allegedly chose to inhabit the shadowy underworld of large-scale drug dealers, using drug proceeds to maintain her family’s façade of upper middle class stability. Sanderlin turned a commonplace warehouse in the heart of Queens into a sophisticated center for growing massive quantities of marijuana for distribution. We are committed to investigating and prosecuting organized drug activity in our communities, no matter who runs the organization or how well it is hidden. Those who use our neighborhoods to grow and introduce illegal drugs into the community will face the full force of the law,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the agents and detectives who investigated the case, and added that the government’s investigation is ongoing.
DEA Special Agent-in-Charge Crowell stated, “Hidden in a warehouse in Maspeth, Queens, this $3 million distribution operation was uncovered as part of a Strike Force investigation. Andrea Sanderlin is alleged to have overseen this operation which produced close to 3,000 marijuana plants to be distributed throughout the New York area. Marijuana is the most abused drug in the nation with 6.5% of high school seniors smoking marijuana on a daily basis. The high THC purity continues to derail more and more teens and young adults into substance abuse programs due to its ever increasing potency. I commend the joint Strike Force team for their steadfast work in identifying and removing this threat to our kids, our families, and our communities.”
“There’s really no difference whether you’re a suburban mom growing marijuana in a warehouse in Queens, or a cartel member making cocaine in the jungles of Colombia -- manufacturing and distributing illegal narcotics comes at a hefty price when you are caught by law enforcement,” said HSI Special Agent-in-Charge Hayes. “While some may mistakenly perceive trafficking in narcotics as a path to a quick profit, this arrest demonstrates the serious consequences that await those who engage in the manufacture and sale of illegal drugs.”
The investigation was led by the DEA’s Organized Crime Drug Enforcement Task Force, which includes agents and officers from the DEA, HSI, New York City Police Department, New York State Police, Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service, United States Marshal Service, United States Secret Service, and the Federal Bureau of Investigation.
If convicted, the defendant faces a minimum sentence of 10 years’ imprisonment and up to $10 million in fines.
The Defendant:
ANDREA SANDERLIN
Scarsdale, NY_____________________________
1 The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Real Estate Broker Pleads Guilty to Scheme to Defraud ClientsRead the Press Release
Debbie Foust, 60, of Mt. Juliet, Tennessee, a real estate broker and former owner of Century 21 Music City, pleaded guilty yesterday in U.S. District Court, to one count of wire fraud, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee. The charge arises from Foust’s scheme to defraud her clients of funds provided as a down payment for a purchase of commercial real estate.“Real estate brokers are entrusted by citizens and investors to maintain client funds for their intended purpose, not to be used improperly for personal gain,” said Acting U.S. Attorney David Rivera. “The U.S. Attorney’s Office will continue to seek out and prosecute professionals who defraud their clients or betray their positions of trust.”
At the plea hearing, Foust admitted obtaining a $200,000 deposit via interstate wires from clients who sought to purchase a parcel of commercial real estate located in Madison, Tennessee. Contrary to her representations to these clients, Foust did not keep these funds in trust for use as a down payment on the commercial parcel but instead, converted the funds to her own use by writing checks totaling $170,000 to other accounts controlled by her. Foust further admitted writing a check to the sellers of the commercial parcel that was returned for insufficient funds, and failing to appear at the closing for the sale of the property, which was never consummated.
After accepting Foust’s plea, U.S. District Judge William J. Haynes, Jr. scheduled a sentencing hearing for September 12, 2013. Foust faces a maximum sentence of 20 years in prison and a maximum fine of up to $250,000.
The case was investigated by the FBI. The case is being prosecuted by Assistant U.S. Attorney William F. Abely.
Rancho Santa Fe Consultant Pleads Guilty to Securities FraudRead the Press Release
David Bahr, a self-employed Rancho Santa Fe consultant, pleaded guilty today to conspiracy to commit securities fraud in connection with the Florida-based penny stock company “iTrackr.”
As set forth in his Plea Agreement, Bahr admitted that he agreed with others to fraudulently manipulate and artificially inflate the price of iTrackr shares in order to make money for himself and his client-investors whom he advised. Bahr admitted that he had bought shares of iTrackr, and advised others to do so, in order to keep up the price of iTrackr stock, and had arranged for the dissemination of promotional material that overstated the likelihood of iTrackr’s success and future profits.
The guilty plea coincides with charges filed today by the Securities and Exchange Commission in connection with the same conduct.
In late November, Bahr spoke on the telephone with an undercover FBI agent posing as a businessman who could arrange for stockbrokers to secretly invest their clients’ money in iTrackr in return for a 30% kickback. The undercover officer told Bahr that the kickback would not be disclosed to the brokers’ clients, and that he could ensure that the shares would be held for approximately one year, thus keeping the shares off the market and avoiding any sales that would decrease the price.
Bahr agreed to the plan, and agreed to pay the kickback. Bahr told the undercover officer that in order to reach his desired share price, he wanted the brokers to buy 10 million shares of iTrackr at an average price of 25 cents per share, for a total investment of $2.5 million. Bahr agreed to pay a total kickback of $750,000.
Bahr and the undercover officer agreed to do a test run. On various days in December 2012, the undercover officer, using FBI funds, made an initial purchase of iTrackr stock, and Bahr purchased a total of 135,000 shares of iTrackr stock. Bahr was satisfied with the purchases, and wired a $3,000 kickback to the undercover officer’s bank account. Days later, federal agents searched his Rancho Santa Fe home and seized documents and electronic evidence.
United States Attorney Duffy reiterated her continuing support for the stiff enforcement of federal securities laws, and cautioned the public to be vigilant against stock manipulators, especially in the penny stock markets. Duffy praised the hard work of the agents from the Federal Bureau of Investigation and the Internal Revenue Service for their efforts in this fraud investigation, and the continuing support of the Securities and Exchange Commission for their expertise and guidance.
Sentencing was set for September 3, 2013 before U.S. District Judge Larry A. Burns. Bahr was released on bond.
DEFENDANT CASE NUMBER 13cr2198-LAB David Bahr SUMMARY OF CHARGETitle 18, United States Code, Section 1349 - Conspiracy to Commit Securities fraud. Maximum penalty: 25 years imprisonment and $250,000 fine.
PARTICIPATING AGENCIESFederal Bureau of Investigation
Internal Revenue ServicePittsburgh Woman Charged with Converting Social Security Benefits to Her Own UseRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pa., has been indicted by a federal grand jury in Pittsburgh on charges of theft of government property, United States Attorney David J. Hickton announced today.
The one-count indictment named Laverne Russell, 72, as the sole defendant.
According to the indictment, Russell converted to her own use over $1,000.00 in Social Security Income Benefits from the Social Security Administration.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Social Security Administration, Office of Inspector General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Man Made False Statements When Purchasing FirearmsRead the Press Release
PITTSBURGH, Pa. - A Pittsburgh man pleaded guilty in federal court to charges of violating federal firearm laws, United States Attorney David J. Hickton announced today.
Charles Douglas Warner, 26, pleaded guilty to two counts before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that on or about July 19, 2009, and on or about October 9, 2009, Warner made false statements to a federal firearms licensee in connection with his purchase of two firearms. In addition, on those dates, Warner was a fugitive from justice, had pending felony drug and firearms charges, and was an unlawful user or addicted to controlled substances when he possessed those firearms.
Judge Ambrose scheduled sentencing for Oct. 15, 2013. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Troy Rivetti is prosecuting this case on behalf of the government.
This case is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Pittsburgh Police conducted the investigation that led to the prosecution of Charles Douglas Warner.
Pittsburgh Man Collected His Dead Mother-in-law’s Social Security Benefits for 18 YearsRead the Press Release
PITTSBURGH, Pa. - An Allegheny County man pleaded guilty in federal court to a charge of theft of government money, United States Attorney David J. Hickton announced today.
Melvin P. McMillan, 67, of Pittsburgh, Pa., pleaded guilty to one count before United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that McMillan received and used the Social Security Title II benefits that continued to be issued to his mother-in-law, Pauline Kasenic, after her death in 1994. From Nov. 3, 1994 to June 1, 2012, McMillan received $224,370.00 in Social Security Administration funds to which benefits he knew he was not entitled.
Judge Ambrose scheduled sentencing for Oct. 15, 2013 at 11:00 a.m. The law provides for a maximum total sentence of not more than 10 year in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentence, the court placed McMillan on bond.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The Social Security Administration, Office of Inspector General, conducted the investigation leading to the information in this case.
Passenger on Frontier Airlines Flight Charged with False Information and ThreatsRead the Press Release
UPDATE
Mark Bote Appears in Federal Court
DENVER – Mark Michael Bote, the man charged with false information and threats while aboard a Frontier Airline Flight that landed in Denver last Friday night appeared in U.S. District Court in Denver this afternoon. He appeared before U.S. Magistrate Judge Craig B. Shaffer. Magistrate Judge Shaffer found that Bote was eligible for court appointed counsel and ordered the court to appoint an attorney to represent the defendant at no cost. James Allison, the Assistant U.S. Attorney representing the government, who is also the Chief of the Criminal Division of the U.S. Attorney’s Office, notified the court that it will be asking that the defendant be held without bond pending a resolution of this case. The Magistrate Judge scheduled the detention hearing, to decide that issue, as well as a preliminary hearing, to determine if there is probable cause that the defendant committed the crimes alleged, for Thursday, June 20th at 10:00 a.m. Until that hearing, Bote will remain in federal custody, under the control of the United States Marshals Service. The Marshals will determine where the defendant will be held pending that hearing.
DENVER – Mark Michael Bote, age 23, of Thornton, Colorado, was charged yesterday by Criminal Complaint with one count of false information and threats while aboard Frontier Airlines Flight 601 en route from Knoxville, Tennessee to Denver, Colorado, United States Attorney John Walsh and FBI Denver Special Agent in Charge Thomas Ravenelle announced. Bote is scheduled to make his initial appearance before U.S. Magistrate Judge Craig B. Shaffer at 2:00 p.m. this afternoon before U.S. Magistrate Judge Craig B. Shaffer, barring unforeseen circumstances, where he will be advised of his rights and the charges pending against him.
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 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.
Anyone accused of committing a federal felony crime has a Constitutional right to be indicted by a federal grand jury. The charges contained in the Criminal Complaint are allegations. The defendant is presumed innocent unless and until proven guilty.
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Ocean County, N.J., Man Admits Sexually Abusing Toddler and Streaming Assault Live over the InternetRead the Press Release
TRENTON, N.J. – An Ocean County, N.J., man today admitted sexually abusing a 15-month-old boy and streaming footage of the assault over the Internet, U.S. Attorney Paul J. Fishman announced.
Rodford W. Brindley, 68, of Toms River, N.J., pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to an information charging him with one count of sexual exploitation of a child.
According to documents filed in this case and statements made in court: Brindley engaged in online chats with someone who he believed to be a parent living in Ohio, but who was, in fact, a law enforcement officer in Ohio. On one occasion, Brindley engaged in sexually explicit conduct with an approximately 15-month-old child, whom he had in his care at his Toms River home, and streamed live video of that conduct over the Internet to Ohio undercover law enforcement officers.
The charge of child sexual exploitation is punishable by a mandatory minimum penalty of 15 years in prison and a maximum potential penalty of 30 years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 26, 2013.U.S. Attorney Fishman thanked the Franklin County Sheriff’s Department in Ohio, the Ocean County Prosecutor’s Office, under the direction of Prosecutor Joseph D. Coronato; and the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s guilty plea.
The government is represented by Special Assistant U.S. Attorney Joseph Muoio of the U.S. Attorney’s Trenton Office.
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Defense counsel: William Cunningham Esq., Brick, N.J.Brindley, Rodford Information
Northern California Real Estate Investor Agrees to Plead Guilty to Bid Rigging at Public Foreclosure AuctionsRead the Press Release
A Northern California real estate investor has agreed to plead guilty for his role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Felony charges were filed today in the U.S. District Court for the Northern District of California in San Francisco against Robert Williams of Atherton, Calif. Williams is the 31st individual to plead guilty or agree to plead guilty as a result of the department’s ongoing antitrust investigations into bid rigging and fraud at public real estate foreclosure auctions in Northern California.
According to court documents, Williams conspired with others not to bid against one another, but instead to designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in San Mateo County, Calif. Williams was also charged with conspiring to use the mail to carry out schemes to fraudulently acquire title to selected properties sold at public auctions, to make and receive payoffs and to divert to co-conspirators money that would have otherwise gone to mortgage holders and others.
The department said Williams conspired with others to rig bids and commit mail fraud at public real estate foreclosure auctions in San Mateo County beginning as early as October 2009 and continuing until about December 2010.
“Collusion at these foreclosure auctions enabled the conspirators to present the illusion of competition, when they were actually thwarting the competitive process and profiting at the expense of lenders and distressed homeowners,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The division remains committed to holding accountable those who illegally subvert competition at real estate foreclosure auctions across the country.”
The department said that the primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at San Mateo County public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner.
“The legitimacy of an open, public real estate foreclosure auction is compromised when an individual or group conspires to commit criminal activity which impacts genuine intentions of good citizens,” said David J. Johnson, FBI Special Agent in Charge of the San Francisco Field Office. “We are steadfast in our continued partnership with the Antitrust Division in bringing those criminally responsible to justice.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for the Sherman Act charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than $1 million. A count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine. The government can also seek to forfeit the proceeds earned from participating in the conspiracy to commit mail fraud.
The charges today are the latest filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa and Alameda counties, Calif. These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Field Office at 415-436-6660, visit www.justice.gov/atr/contact/newcase.htm, or call the FBI tip line at 415-553-7400.
Today's charges were brought in connection with the President's Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
**The fraud charge(s) referenced in this press release were
subsequently dismissed on the government’s motion.**
Northampton County Man Sentenced to Prison for Federal Cocaine Trafficking ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Northampton County man was sentenced today by Senior United States District Judge Edwin M. Kosik to serve 48 months in prison on the charge of conspiracy to distribute cocaine.
According to United States Attorney Peter J. Smith, Reinaldo Colon-Seda, age 50, formerly of Wind Gap, Northampton County, previously admitted to participating in a conspiracy to distribute powder cocaine in the Monroe County and Northampton County areas in 2011.
In addition to the prison term, Senior Judge Kosik also ordered that Colon-Seda be supervised by a probation officer for four years following his prison sentence.
The investigation was conducted by the Drug Enforcement Administration and the Monroe County Drug Task Force.
The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.
North Dakota Woman Charged with Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Yates, North Dakota woman has been indicted by a federal grand jury.
Marissa Sitting Dog, age 25, was indicted by a federal grand jury on June 12, 2013 for Child Abuse and Neglect. Sitting Dog appeared before U.S. Magistrate Judge William D. Gerdes and pled not guilty to the Indictment.
The maximum penalty upon conviction is 15 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment to the Federal Crime Victims Fund may also be ordered.
The charge is merely an accusation, and Sitting Dog is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Sitting Dog was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
New Bern Drug Dealer Sentenced to 9 Years in Federal PrisonRead the Press Release
RALEIGH – United States Attorney Thomas Walker and District Attorney Scott Thomas announced that today in federal court today, Chief United States District Judge James C. Dever III sentenced Walter Terion Brown , 25, of New Bern, NC to 108 months imprisonment, followed by 4 years of supervised release. BROWN was also ordered to pay $2,160 in restitution to the New Bern Police Department and Carteret County Sheriff’s Office.
BROWN was named in an Indictment filed on September 25, 2012 charging him with possessing with intent to distribute 28 grams or more of cocaine base (crack). On January 22, 2013, BROWN pled guilty to that charge.
As part of a separate investigation, a New Bern Police Department detective, acting undercover, purchased cocaine base (crack) from Tinnius Remone Bell on May 26, 2011. Investigation revealed that Bell obtained the crack he sold to the undercover officer from WALTER TERION BROWN. Officers from the Coastal Narcotics Enforcement Team then utilized a confidential informant to purchase cocaine base (crack) directly from BROWN on four additional occasions in 2011. In total, BROWN was held responsible for possessing with the intent to distribute and distributing over 441 grams of cocaine base (crack). Tinnius Remone Bell was sentenced on November 2, 2012 to 72 months imprisonment, followed by 5 years of supervised release for his role in the distribution of cocaine and cocaine base (crack) in the New Bern area.
Investigation of this case was furthered by the Coastal Narcotics Enforcement Team, a multi-agency task force comprised of agents from the Carteret County Sheriff’s Office, Craven County Sheriff’s Office, Havelock Police Department, Jones County Sheriff’s Office, New Bern Police Department, Pamlico County Sheriff’s Office, River Bend Police Department, State Bureau of Investigation and Trent Woods Police Department. Special Assistant United States Attorney Augustus Willis represented the government in these matters. Mr. Willis is a prosecutor with the District 3-B District Attorney’s Office encompassing Carteret, Craven and Pamlico Counties. District Attorney Scott Thomas has assigned him to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Wills’ position is funded through a grant provided by the Governor’s Crime Commission.
Mortgage Broker Sentenced for $20 Million Mortgage Fraud SchemeRead the Press Release
MINNEAPOLIS – Earlier today in federal court, an Edina mortgage broker was sentenced for his role in a $20 million mortgage fraud scheme that involved 57 properties. United States District Court Judge Joan N. Ericksen sentenced Derrick Ivan Lance, age 41, of Edina, to 46 months imprisonment followed by three years of supervised release on one count of conspiracy to commit wire fraud. Lance was charged on July 22, 2011, and pleaded guilty on August 10, 2011.
In his plea agreement, Lance admitted that between 2004 and 2007, he conspired with others to obtain mortgage loan proceeds based on fraudulent documentation. Lance’s unnamed co-conspirators identified residential properties available for purchase and recruited buyers for those properties. Two of the co-conspirators told buyers they would receive payments in the form of kickbacks after the property transactions had closed, and that they could put those payments toward the mortgages or use them to improve the properties.
For his part, Lance admitted using his licensed mortgage brokerage and his position within that brokerage to help prepare and submit false mortgage loan applications, which misrepresented the buyers’ true financial situation. Based on those fraudulent documents, loans were approved, and loan proceeds were disbursed by wire transfer into the accounts of various title companies. Due to paperwork that misrepresented the true nature of the real estate transactions, Lance and his co-conspirators then caused those title companies to disburse portions of the proceeds from the various transactions into bank accounts not associated with the property buyers, the purpose being to conceal the undisclosed kickbacks. Lance received more than $200,000 for assisting buyers in securing mortgage loans for at least 24 properties.
This case was the result of an investigation by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Tracy L. Perzel.
The U.S. Attorney’s Office wants to remind people to protect themselves from mortgage fraud. For more information, visit http://www.stopfraud.gov/protect-mortgage.html.Mexican and Honduran Citizens Indicted on Federal Charges of Transporting Illegal Foreign NationalsRead the Press Release
Violations Discovered During Traffic Stop by Tennessee State Trooper
KNOXVILLE, Tenn. – Mario Garcia-Duarte, 22, of Mexico, and Guadalupe Orellana-Morel, 20, of Honduras, were indicted on June 18, 2013, by a federal grand jury in Knoxville, Tenn., on charges relating to the transportation of foreign nationals who were in the United States illegally. Both Garcia-Duarte and Orellana-Morel remain in custody and will appear in U.S. District Court later this week.
Garcia-Duarte was the driver of a vehicle that was stopped on June 11, 2013, in Knox County, by Tennessee Highway Patrol (THP) Trooper Adam Bowman, a member of the THP’s East Bureau Interdiction Plus Team. Orellana-Morel was a passenger in the vehicle.
At the time of the traffic stop, Garcia-Duarte presented a Mexican driver’s license to Trooper Bowman. Further investigation at the scene revealed 14 additional passengers in the vehicle with no luggage or personal items. After a background check on the vehicle, Federal Homeland Security Investigations agents were called to the scene, where they assumed primary responsibility of the investigation.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Medical Business Owner Indicted for Medicaid FraudRead the Press Release
Business Provided Speech-Language Therapy Services for Children
ATLANTA – Jennifer C. Alsdorf has been indicted on charges of health care fraud and wire fraud for filing over $500,000 in fraudulent claims with the Georgia Medicaid program.
“This defendant is charged with robbing Medicaid of over half a million dollars intended for children in need. Her alleged fraud includes billing for medical services never performed, for patients never seen, and in the names of medical professionals who were not working for the defendant,” United States Attorney Sally Quillian Yates. “Medicaid fraud affects individuals, families, and communities in higher costs, and as this case shows, we have a strong federal-state alliance intent on combatting this serious crime.”
“The FBI continues to work hard in ensuring that federal Medicaid funds are used in the manner intended by law and will continue to work with its various law enforcement partners in identifying, investigating, and presenting for prosecution those individuals who abuse the system,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. “Anyone with information regarding health care fraud should contact their nearest FBI field office immediately.”
“It appears that Ms. Alsdorf viewed Medicaid as a slush fund to enrich herself,” said Attorney General Sam Olens. “This case sends a strong message that the federal and state governments will work together to aggressively prosecute Medicaid fraud in Georgia.”
According to United States Attorney Yates, the charges and other information presented in court: Jennifer C. Alsdorf, 43, of Tampa, Fla., is the owner, President, and CEO of Hand in Hand Speech & Language Services, Inc. The medical business is located in Tampa, Fla. (and prior to 2005 in Vidalia, Ga.) and offers speech-language therapy services for children covered by Medicaid. Acting on behalf of Hand in Hand, Alsdorf contracted with speech-language pathologists to perform services under independent contractor agreements. Alsdorf would bill Medicaid for the services provided by the pathologists, and then send a portion of the amount she received from Medicaid to them.
In the contracts, Alsdorf agreed to pay a set fee to the pathologists for each initial evaluation and each subsequent therapy visit rendered by the pathologists to Medicaid recipients. The fees that Alsdorf paid to the pathologists for those two services were less than, but based on, the amounts that Medicaid reimbursed for the services. Alsdorf made a profit by keeping the difference between what Medicaid paid and what she remitted to the pathologists.
After rendering services to patients, the pathologists would send Alsdorf treatment notes showing which patients they had seen, how long they had provided therapy, and which services they had provided. Alsdorf was supposed to use these notes to prepare the claims to submit to Medicaid. Unbeknownst to the speech-language pathologists, however, in addition to billing Medicaid for initial evaluations and therapy visits, Alsdorf also billed Medicaid for “sensory integration” therapy, a service the pathologists had not provided. Many of the pathologists did not even know what sensory integration therapy was and had never heard of such a service. Alsdorf did not send any of the money she received from Medicaid for this service to the pathologists. She instead kept all of the money she received for sensory integration therapy.
Alsdorf also submitted claims to Medicaid for patient visits that never occurred. She submitted claims under pathologists’ names for services during times when they were not working with Hand in Hand. She also submitted claims representing that the pathologists had treated certain patients when, in fact, the pathologists had never seen or treated the patients at any time. Alsdorf is alleged to have submitted over $500,000 in fraudulent claims to Medicaid.
A federal grand jury indicted the defendant on May 21, 2013, who was arraigned today on the charges before United States Magistrate Judge Justin S. Anand.
The indictment charges 74 counts of health care fraud and 10 counts of wire fraud. Each health care fraud count carries a maximum sentence of 10 years in prison, and each wire fraud count carries a maximum sentence of 20 years in prison. Each count also carries a fine of up to $250,000. 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 contains only allegations. 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 and Investigators from the Georgia Medicaid Fraud Control Unit and the Georgia Department of Community Health.
Assistant United States Attorney Stephen H. McClain and Georgia Assistant Attorney General Henry A. Hibbert are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Maryland Man Sentenced to Six-Year Prison Term for Assaulting A Man in Christmas Eve Attack Near Metro Station- Charges Included the Wearing of A Mask While Committing A Crime-Read the Press Release
WASHINGTON - Michael Anthony Hartley, 22, of Temple Hills, Md., was sentenced today to six years in prison for attacking a man on Christmas Eve 2012 near a Metro station in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Hartley was found guilty in April 2013, following a jury trial in the Superior Court of the District of Columbia, of assault with intent to commit robbery while armed; assault with significant bodily injuries; malicious destruction of property, and wearing a hood or mask concealing his identity while committing these offenses. He was sentenced by the Honorable Michael Ryan. Upon completion of his prison term, Hartley will be placed on five years of supervised release.
According to the government’s evidence, on Dec. 24, 2012, at about 3:30 p.m., the victim was leaving the Rhode Island Avenue Metro station and was on his way home. He was putting his iPhone in his pants pockets when he encountered Hartley, a stranger. Both men exchanged a perfunctory greeting of "hey" as they walked past each other.
Seconds later, the victim noticed that Hartley was walking shoulder-to-shoulder with him. However, Hartley now was wearing a hoodie over his head and a mask covering his mouth. Hartley demanded the victim’s iPhone. He told the victim that he had a gun, put his hand in his jacket-pocket, and made a gesture as if pointing the weapon. The victim tried to get away, but Hartley caught him. At this point, Hartley shoved the victim while loudly demanding the iPhone. A bystander happened to walk by and called the police.
Before police could get to the scene, Hartley punched the victim in the face at least twice with a closed fist, causing significant injuries, including facial lacerations. Hartley also broke the victim’s eyeglasses. During the entire attack, Hartley was wearing a hoodie over his head and a mask covering part of his face to conceal his identity. The police arrived while Hartley was still on the scene, and the victim pointed him out as the person who tried to rob him.
In announcing the sentence, U.S. Attorney Machen commended the work of the Metropolitan Police Department (MPD). He also acknowledged the efforts of those worked on the matter for the U.S. Attorney’s Office, including Paralegal Specialist Tameka Garcia and Litigation Technology Specialist Thomas Royal. Finally, U.S. Attorney Machen commended the work of Assistant U.S. Attorney John C. Truong, who investigated and prosecuted the case.
13-215Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Charges Against Psychiatrist for Illegally Distributing OxycodoneRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (“FBI”) announced the arrest today of William S. Belfar, a licensed psychiatrist in New York, on charges that he distributed oxycodone, a prescription painkiller, for cash and without a medical purpose. BELFAR was presented today in Manhattan federal court before U.S. Magistrate Judge Andrew J. Peck.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, William Belfar, a licensed psychiatrist, contributed to the growing epidemic of prescription drug abuse and addiction by writing prescriptions in exchange for cash – conduct which he had described as illegal when discussing other doctors. This Office will not tolerate medical professionals who exploit their licenses to fuel the prescription drug problem.”
FBI Assistant Director-in-Charge George Venizelos said: “William Belfar, a licensed physician and mental health professional, allegedly exploited the addictive nature of oxycodone – the very thing he warned of on television – to make money. He violated the oath of his profession and broke the law in peddling oxycodone prescriptions. The Health Care Fraud Task Force was formed in part to protect the public from unscrupulous doctors who put profiteering ahead of professional responsibility.”
According to the Complaint unsealed today in Manhattan federal court:
BELFAR operated a medical office in Manhattan, New York, from which he sold prescriptions for oxycodone and other medications for cash. On three occasions from May 2011 to April 2013, he sold prescriptions of oxycodone pills and other medications to an FBI confidential informant and two undercover FBI officers. BELFAR sold the prescriptions for up to $1,000 per prescription. On one occasion when BELFAR sold an oxycodone prescription, he stated to the informant: “[I]t is a very easy way to make money, but it’s an easy way for me to go to jail too.” BELFAR prescribed the oxycodone to the confidential informant even though he said he believed the informant was a “dealer.”
In February and March 2013, around the same time that BELFAR was selling oxycodone prescriptions, he appeared on two television shows as an interview guest on the subject of oxycodone addiction. During those interviews, BELFAR discussed cases of celebrities becoming addicted to oxycodone, including one situation where the “doctor essentially became [a] drug dealer.” BELFAR also stated during one interview that “This is a big business. . . . On the street . . . each [oxycodone] pill is $30. . . . Patients will pay a lot of money just to get these pills. . . . The doctors prescribe it. Yes, some do it for money. Some do it because they just don’t know what they are doing. . . . [T]hey just shouldn’t be doing it.”
Oxycodone, a Schedule II controlled substance, is a powerful painkiller with a high potential for addiction and abuse. It is sold on the street as a substitute for heroin and other illegal drugs.
BELFAR, 49, of Huntington, New York, is charged with three counts of distributing oxycodone. Each count carries a maximum sentence of 20 years in prison.
Mr. Bharara praised the investigative work of the FBI, the FBI’s Boston Field Office, the FBI Boston-Lakeville RA, the New York City Police Department, and the FBI’s New York Health Care Fraud Task Force. The FBI’s New York Health Care Fraud Task Force was formed in 2007 in an effort to combat health care fraud in the greater New York City area. The task force is composed of agents, officers and investigators of the FBI, NYPD, New York State Insurance Fraud Bureau, U.S. Department of Labor, U.S. Office of Personnel Management Inspector General, U.S. Food and Drug Administration, NYS Attorney General’s Office, NYS-Office of Medicaid Inspector General, NYC Health and Hospitals Inspector General, and the National Insurance Crime Bureau.
The case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Rahul Mukhi and Ian McGinley are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. William Belfar Complaint
Man Pleads Guilty to Selling Counterfeit Goods at Kansas City, Kan., StoreRead the Press Release
KANSAS CITY, KAN. – A man has pleaded guilty to selling counterfeit goods at a store in Kansas City, Kan., including shoes labeled as Nike Air Force 1 and shirts labeled as Polo Ralph Lauren, U.S. Attorney Barry Grissom said today.
Jehad Shalabi, 45, pleaded guilty to one count of conspiracy to traffic in counterfeit trademark goods. During a hearing today, prosecutors told the judge that Shalabi sold counterfeit goods at a retail store called Joe Black, Inc., at 3201 State Avenue in Kansas City, Kan.
Agents of the FBI made undercover purchases at the store including a counterfeit trademark pair of Nike Air Force 1 shoes on Feb. 22, 2011, and a counterfeit trademark Polo Ralph Lauren knit shirt on June 9, 2011. On June 30, 2011, Shalabi sold a counterfeit trademark NBA Chicago Bulls hat.
On June 28, 2011, agents served a search warrant at the store and seized approximately 588 counterfeit items with trademarks including Polo Ralph Lauren, Nike, Major League Baseball, Nervous Tattoo (Ed Hardy and Christian Audigier), Luxirie, Rocawear and Coogi.
Investigators learned that counterfeit goods made up approximately 20 percent of the store’s weekly sales of $4,000 to $6,000.
Sentencing is set for Oct. 9. Shalabi faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. Grissom commended the FBI, ICE-HSI, the Kansas City, Kan., Police Department and Assistant U.S. Attorney Scott Rask for their work on the case.