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Monday 6 May 2013
6 Georgia Residents Charged in Meth ConspiracyRead the Press Release
DUBLIN, GA – A federal indictment has charged six defendants with a conspiracy to manufacture methamphetamine. The indictment results from a joint investigation by the ATF and the Johnson County Sheriff’s Office (JCSO).
United States Attorney Edward Tarver said, “Investigations like these are the result of outstanding cooperation between federal, state and local law enforcement agencies. We are committed to bringing justice to those who profit from trafficking meth and other poison in our communities.”
If convicted of the drug conspiracy charge, each defendant faces a maximum statutory penalty of 20 years in prison and $1 million fine. The six defendants indicted on federal charges include:
James A. Willis, 31, Tennille, Georgia;
April M. Johnson, 34, Wrightsville, Georgia;
Jenna N. Waller, 28, Tennille, Georgia;
Daniel L. Wittmer, 28, Wrightsville, Georgia;
Krystal N. Wynn, 31, Wrightsville, Georgia; and,
Justin H. Price, 23, Wrightsville, Georgia.
The JCSO and ATF arrested the defendants earlier this week. Initial court appearances were held on May 2 at the federal courthouse in Dublin.Mr. Tarver emphasized that the indictment is only an accusation and is not evidence of guilt. The defendants are entitled to a fair trial, during which, the Government bears the burden to prove guilt beyond a reasonable doubt.
Assistant United States Attorney Lamont A. Belk is prosecuting the case for the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Sunday 5 May 2013
Ninth Member of Playboy Bloods Street Gang Convicted on Federal Racketeering, Murder, and Drug ChargesRead the Press Release
LAS VEGAS - - Following a month-long jury trial, Jacorey Taylor, aka “Mo-B,” 30, a member of the Playboy Bloods street gang, was convicted today of a racketeering conspiracy charge, murder in aid of the racketeering enterprise, use of a firearm during a crime of violence, conspiracy to distribute over 280 grams of crack cocaine, and two counts of possession with intent to distribute crack cocaine for conduct that included the retaliation murder of a man in November 2004, announced Daniel G. Bogden, United States Attorney for the District of Nevada and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Taylor was convicted of one count of engaging in a RICO conspiracy, one count of violent crime in aid of racketeering activity, one count of using a firearm during a crime of violence, one count of participating in a drug conspiracy, and two counts of possession of crack cocaine with the intent to distribute. He is the ninth of 10 gang members charged in federal court in 2008 to be convicted. The remaining defendant, Markette Tillman, 31, is scheduled for trial beginning on September 23, 2013.
Two Playboy Blood co-defendants were sentenced to 20 years each during Taylor’s trial. Steven Booth, 27, aka “Stevie-P,” and Reginald Dunlap, 30, aka “Bowlie,” were sentenced on April 9th and 10th , 2013, respectively, after pleading guilty to racketeering conspiracy charges that included aiding and abetting in murder in connection with the Playboy Bloods racketeering conspiracy.
According to court documents and evidence produced at trial, the Bloods is a nationally-known criminal street gang whose members engage in drug trafficking and acts of violence. The Playboy Bloods is a local “set” or affiliate of the Bloods, with local control and operation within the Las Vegas metropolitan area. Other Bloods sets within the Las Vegas metropolitan area include the Piru Bloods and the West Coast Bloods. A subset of the Playboy Bloods is Full Throttle Clique, a group made up of Playboy Bloods members who engage in acts of violence, including murder. According to evidence presented at trial, Taylor, Dunlap, and Booth were all members of the “Full Throttle Clique” of the Playboy Bloods. Taylor, along with other Playboy Bloods enterprise members, operated drug houses in the Sherman Gardens Annex (also known as “The Jets”) and the surrounding areas.
Taylor, along with co-defendants Reginald Dunlap and Steven Booth, was specifically convicted of participating in the murder of Billy Ray Thomas, who was shot multiple times in the back as he worked on a car in the parking lot of the Pecos Terrace Apartments located at 3555 E. Lake Mead Boulevard in Las Vegas while waiting to take his girlfriend to work on the morning of November 1, 2004. The defendants murdered Thomas in retaliation, mistakenly believing him to be a member of a rival street gang. According to evidence presented at trial, two car loads of Playboy Bloods members and associates, including Taylor, Dunlap, Booth and others, drove through known Crip neighborhoods searching for rivals to retaliate against for the murder of Quaza Burns, a leader of the Playboy Bloods. The victim, Billy Ray Thomas, had no gang affiliation.
Booth also admitted to participating in the murder on January 20, 2004, of Brian Wilcox, a security guard working in the Sherman Gardens Annex. Brian Wilcox was shot several times in the back while on duty.
Evidence produced at trial also showed that on March 21, 2002, Taylor, armed with an AR-15 style assault rifle and another man, armed with an handgun, entered the Klondike Casino in Henderson, Nevada, forced their way behind the casino cage, and robbed the casino of over $7,000 in currency.
United States Attorney Daniel G. Bogden commended the trial team and stated, “A federal jury today confirmed that Jacorey Taylor and other members of the Playboy Bloods sold drugs, committed robberies, intimidated security guards and other citizens and murdered innocent victims. It was only through the persistent hard work of the FBI and our local law enforcement partners, along with dedicated federal prosecutors from my office and the Department of Justice’s Organized Crime and Gang Section, that a previously unsolved murder was prosecuted and those gang members were brought to justice. The Sherman Gardens and the surrounding neighborhoods in Las Vegas are safer because of those efforts.”
Taylor has been in federal custody since 2008, and is scheduled to be sentenced on August 8, 2013, by Chief U.S. District Judge Robert C. Jones. Taylor faces up to 20 years on the racketeering conspiracy count, mandatory life in prison on the murder in aid of racketeering charge, up to life for using a firearm in furtherance of a violent crime, 20 years to life on the conspiracy to distribute crack cocaine and up to 30 years in prison for each count of possession with intent to distribute crack cocaine. In the federal system, there is no parole and by statute Taylor faces a mandatory sentence of life without parole for his murder conviction.
Taylor was the ninth member of the Playboy Bloods enterprise convicted of racketeering conspiracy charges.The eight other defendants who have been convicted and sentenced are:
Steven Booth, aka “Stevie-P,” 27, pleaded guilty to RICO conspiracy, and was sentenced to 20 years in prison on April 10, 2013;
Reginald Dunlap, aka “Bowlie,” 30, pleaded guilty to RICO conspiracy, and was sentenced to 20 years in prison on April 9, 2013;Demichael Burks, aka “Mikey P,” 29, pleaded guilty to RICO conspiracy, and was sentenced to 6½ years in prison on Dec. 3, 2010.
Anthony Mabry, aka “Akim Slim,” 43, pleaded guilty to RICO conspiracy and was sentenced to 14 years in prison on Oct. 20, 2010;
Delvin Ward, aka “D-Luv,” 37, pleaded guilty to RICO conspiracy and was sentenced to 11 years in prison on Sept. 17, 2010;
Terrence Thomas, aka “Seven,” 40, pleaded to drug conspiracy and was sentenced to 10 years in prison on June 16, 2010;
Sebastian Wigg, aka “Rock,” 36, pleaded to drug conspiracy and was sentenced to five years in prison on March 29, 2010; and
Fred Nix, aka “June P,” 36, pleaded to drug conspiracy and was sentenced to five years in prison on March 29, 2010.
The cases were investigated by the FBI’s Las Vegas Safe Streets Gang Task Force, which include officers from the North Las Vegas Police Department and Las Vegas Metropolitan Police Department, and prosecuted by Assistant United States Attorneys Nicholas D. Dickinson, and Phillip N. Smith, Jr., and Kevin L. Rosenberg, Trial Attorney with the U.S. Department of Justice Organized Crime and Gang Section.
Friday 3 May 2013
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
COMPLAINT:
Nathan Demar Huey-Dingle, 31, of South Bend, Indiana, was charged by Complaint with sex trafficking by force, fraud and coercion and transporting across state lines for the purpose of engaging in prostitution.This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the Federal Bureau of Investigation.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jill Koster.
The United States Attorney's Office emphasized that a Complaint is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
DISPOSITIONS:
Raymond Alger, 49, of Granger, Indiana, was sentenced by District Judge Robert Miller, Jr. to 27 months imprisonment, a $5000.00 fine and 5 years of supervised release after pleading guilty to the felony offense of possession of child pornography.This case was the result of an investigation by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.This case was prosecuted by Assistant United States Attorney John Maciejczyk.
Jeremy Dyer, 32, of Iroquois, Indiana, was sentenced by District Judge Robert Miller, Jr. to 48 months imprisonment and 1 year of supervised release after pleading guilty to the felony offense of use of a phone in the distribution of marijuana.This case was the result of an investigation by the Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Karla Ruelas, 23, of South Bend, Indiana, was sentenced by District Judge Robert Miller, Jr. to 15 months imprisonment and 2 years of supervised release after pleading guilty to the felony offenses of conspiracy to harbor illegal aliens and mail fraud.According to documents filed by the government in this case, Ruelas admitted that she worked for Servicios Mi Tierra (SMT) in South Bend, Indiana.She was hired by Paulino Ascencion-Apolino to perform assorted services for members of the Hispanic community in the South Bend area, in part because she could speak Spanish as well as English.Among other things, she helped aliens of Hispanic descent who were in the United States in violation of immigration laws. Illegal aliens cannot register their motor vehicles with the Indiana Bureau of Motor Vehicles (BMV) because they cannot obtain a Social Security Number (SSN).Ruelas would generate an Employer Identification Number (EIN) as a substitute for an SSN and then use that EIN in the BMV registration process. As part of her duties at SMT, she would sign other peoples' names, both buyers and sellers, to vehicle titles and other paperwork without their permission.She would also change the vehicles' purchase price in order to reduce the amount of tax that SMT's customers would have to pay to the State of lndiana. This case was the result of an investigation by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and United States Postal Service-Office of the Inspector General.This case was prosecuted by Assistant United States Attorney Kenneth Hays.
Richard Hodges, 69, of Michigan City, Indiana, was sentenced by District Judge Jon DeGuilio to 2 years of supervised release and $31,302.00 in restitution after pleading guilty to the felony offense of theft of Social Security Retirement Income Benefits.Hodges continued to collect his father’s monthly benefit payments after his father had passed away.This case was the result of an investigation by the Social Security Administration.This case was prosecuted by Assistant United States Attorney Barbara Brook.
Jeffrey Cripe, 38, of Elkhart, Indiana, was sentenced by District Judge Jon DeGuilio to 20 years imprisonment and 25 years of supervised release after pleading guilty to the felony offense of distribution of child pornography.According to documents filed by the government in this case, Cripe made child pornography available to be downloaded between January 2012 and July 2012.The material he made available included sadistic images of minors being sexually abused. Messages recovered from Cripe’s computer also indicated that he had approached numerousfemale minors between the ages of 12 and 16 years old online for a period over a year and a half,and enticed them into performing sexual acts and creating pornographic images of themselves for him. This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Indiana State Police.This case was prosecuted by Assistant United States Attorney John Maciejczyk.
Eric Arnold, 40, of Macy, Indiana, was sentenced by District Judge Robert Miller, Jr. to 27 months imprisonment and 1 year of supervised release after pleading guilty to the felony offense of use of a communication facility to distribute marijuana.This case was the result of an investigation by the Drug Enforcement Administration. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana—The United States Attorney’s Office announced the following activity in Federal Court:
COMPLAINT:
Nathan Demar Huey-Dingle, 31, of South Bend, Indiana, was charged by Complaint with sex trafficking by force, fraud and coercion and transporting across state lines for the purpose of engaging in prostitution.This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the Federal Bureau of Investigation.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jill Koster.
PLEA:
Joshua Atwood, 29, of Crown Point, Indiana, pled guilty before Senior District Judge Rudy Lozano to the felony offense of possession of child pornography.This charge was filed as a result of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.This case is being prosecuted by Assistant United States Attorney Jill Koster.
Francisco Perez, 32, of Gary, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of possession with the intent to distribute cocaine.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation.Sentencing has been set for 8/1/13.This charge was filed as a result of an investigation by the Drug Enforcement Administration.This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
DISPOSITIONS:
Michael Hostetler, 29, of Portage, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 96 months imprisonment, $2000.00 in restitution to each of two victims, a $5000.00 fine and 20 years of supervised release after pleading guilty to the felony offenses of receipt of child pornography and possession of child pornography.According to documents filed by the government in this case, a Michigan City Police Department officer using a computer connected to the Internet launched a publicly available peer-to-peer ("P2P") file sharing program from his office in the Michigan City Police Department. The officer browsed the shared directories and was able to download at least three images that depicted minors engaged in sexually explicit conduct. The IP address was identified as belonging to Hostetler.A search warrant was obtained authorizing a search of Hostetler’s residence where law enforcement found videos depicting minors engaging in sexually explicit conduct saved to a laptop computer belonging to Hostetler.This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the Federal Bureau of Investigation, the Michigan City Police Department and the Indiana State Police.This case was prosecuted by Assistant United States Attorney Jill Koster.
Maria Sustaita, 50, of East Chicago, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 24 months plus 12 days imprisonment, $6,836.14 in restitution and 1 year of supervised release after pleading guilty to the felony offenses of aggravated identity theft and obstruction of correspondence.According to documents filed by the government in this case, Sustaita added her name, or an alias, to the existing credit card accounts of victims without their knowledge; made purchases on these takeover credit accounts of the victims without their knowledge; opened new credit card accounts utilizing the personal identifying information of the victims without their knowledge;made personal purchases on these fraudulently opened credit cards without the knowledge of the victims; redirected U.S. mail from the address of the victims to her residence; and redirected the victims mail, as well as any other correspondence or packages associated with the fraudulently obtained credit cards. The victims were seniors - one victim was born in 1925 making him 87 years of age and the other victim was born in 1926 making her 86 years of age. The defendant entered the homes of these individuals with the express purpose of victimizing them based upon their age. This case was the result of an investigation by the United States Postal Service-Office of the Inspector General.This case was prosecuted by Assistant United States Attorney Toi Houston.
Jose Zambrano, 33, of Chicago, Illinois, a defendant in the case US v Vargas et al., was sentenced by Senior District Judge Rudy Lozano to 240 months imprisonment and 5 years of supervised release after pleading guilty to the felony offense of conspiracy to participate in racketeering activity.Zambrano, a member of the Latin Kings street gang, conspired to conduct and participate in the conduct of the enterprise through a pattern of racketeering activity consisting of multiple acts involving murder, robbery and narcotics trafficking. This case is being investigated by the Federal Bureau of Investigation , the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Drug Enforcement Administration (DEA), U.S. Immigration and Customs Enforcement (ICE); the National Gang Targeting, Enforcement & Coordination Center (GangTECC); the National Gang Intelligence Center; the Chicago Police Department; the Griffith Police Department; the Hammond Police Department; the Highland Police Department; the Lake County, Indiana, HIDTA and the Houston, Texas Police Department. This case was prosecuted by Trial Attorney Joseph Cooley of the Department of Justice Criminal Division, Gang Unit, and Assistant United States Attorney David Nozick.
Marcus McCants, 35, of Sauk Village, Illinois, a defendant in the case US v Powell et al., was sentenced by Senior District Judge Rudy Lozano to 57 months imprisonment and 5 years of supervised release after pleading guilty to the felony offense of conspiracy to distribute one kilo or more of heroin.This case was the result of an investigation by the Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Fort Wayne, Indiana—The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITION:
Mark Honer, 29, of Fort Wayne, Indiana, was sentenced by District Judge Theresa Springmann to 92 months imprisonment and 4 years of supervised release after pleading guilty to the felony offense of possession with the intent to distribute crack cocaine.According to documents filed by the government in this case, during the course of the investigation, crack cocaine was purchased from Honer and all were “controlled” drug transactions. This case was the result of an investigation by the Federal Bureau of Investigation and the Fort Wayne Police Department.This case was prosecuted by Assistant United States Attorney Lesley Miller Lowery.
Venice Man Pleads Guilty to Firearm OffenseRead the Press Release
On May 2, 2013, Justin J. Harper, a 24-year old Venice, 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. Harper is scheduled for sentencing on August 5, 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. Harper also agreed to the forfeiture of the firearm.
Court proceedings revealed that on October 5, 2011, law enforcement officers executed a search warrant at the rear residence of a home in Venice, Illinois. As they entered the residence, Harper was seen exiting a rear bedroom. Upon searching this bedroom, officers observed and recovered a 9mm semi-automatic pistol on the floor protruding from underneath the bed.
This case was investigated the Bureau of Alcohol, Tobacco, Firearms and Explosives and is assigned to Assistant United States Attorney Daniel T. Kapsak for prosecution.
Union Leader, Malvin Bergeron, Charged with Stealing Union FundsRead the Press Release
MALVIN BERGERON, age 63, a resident of Jefferson Parish, was charged today in a one-count Bill of Information for embezzling assets of a local labor union in violation of Title 29, United States Code, Section 501(c), announced United States Attorney Dana J. Boente.
According to court records, BERGERON held the positions of President and Secretary Treasurer of the Graphic Communications Union Local 537M. Local 537M maintained a checking account with a local bank to hold the membership dues that were collected from the union members. As the union’s President, BERGERON was able to access the funds in the union account through checks. According to the Bill of Information, from on or about May 9, 2008 and continuing through on or about February 9, 2009, BERGERON embezzled $4,041.88 from the union account by writing, endorsing, and cashing checks made payable to him personally that were not authorized by the union’s bylaws.
If convicted, BERGERON face a maximum term of imprisonment of five years, a fine of $10,000 and three years of supervised release following any term of imprisonment.
U. S. Attorney Dana J. Boente reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the U.S. Department of Labor. The case is being prosecuted by Assistant U. S. Attorney Spiro G. Latsis.
(Download Bill of Information )
Two Defendants Charged in Theft from Seminole TribeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced the return of a ten count indictment charging defendants Frank Excel Marley III, 39, of Miramar and Maria Hassun, 66, of Miami, with unjustly enriching themselves by stealing from the Seminole Tribe of Florida.
Specifically, both defendants are charged with one count of conspiring to commit mail and wire fraud; in violation of Title 18, U.S.C. § 1349, as well as nine counts of theft from an Indian Tribe, in violation of Title 18, U.S.C., §§ 1163 and 2.
According to the indictment, the defendants sought to enrich themselves unlawfully by defrauding the Seminole Tribe of Florida. The indictment states that from approximately October, 2006, through on or about March 3, 2011, the defendants did knowingly and willfully combine, conspire, confederate and agree to knowingly and with intent to defraud, devise and intend to devise a scheme and artifice to defraud and to obtain money from the Seminole Tribe of Florida, that is, approximately $1,033,605, by means of the United States mails and wire communications.
It is alleged that defendant Frank Excel Marley III, an attorney who was retained by the Seminole Tribe, proposed to the Tribe that they undertake a project to open radio stations at the Brighton and Big Cypress Reservations. It is further alleged that Marley retained outside law firms and vendors to assist in accomplishing the radio project and instructed co-defendant Maria Hassun, his administrative assistant, to increase the charges invoiced to the Tribe by inflating the amount of his billable hours and billing the Tribe for travel, conferences, phone calls and meetings that did not occur. The defendants submitted the monthly invoices by email, United States mail and fax to the Tribe for work purportedly done by the Marley Firm each month, which included inflated and falsified charges for the costs that had purportedly been incurred by third party consultants and law firms retained by Marley to assist him with the radio project and other matters on behalf of the Tribe.
If convicted, the defendants face a possible maximum statutory sentence of twenty years in prison for the conspiring to commit mail and wire fraud count and five years in prison for each count of theft from an Indian Tribe.
Mr. Ferrer commended the investigative efforts of the FBI and thanked the Seminole Tribe of Florida for their cooperation and assistance with the investigation. The case is being prosecuted by Assistant U.S. Attorney Neil Karadbil.
An indictment is only an accusation and a defendant is presumed innocent unless proven guilty.
Attachments:
Indictment (PDF)A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Truck Driver Appears in Federal Court on Drug ChargesRead the Press Release
-Nevada Highway Patrol Found Methamphetamine and Heroin in Truck During Traffic Stop-
RENO, Nev. – A Washington State man appeared before a federal magistrate judge this afternoon to answer federal drug distribution charges after a Nevada Highway Patrol Officer found 26 pounds of methamphetamine and six pounds of heroin in the tractor-trailer he was driving on U.S. Highway 6 in White Pine County, Nev., announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Victor H. Orozco, 38, of Grandview, Wash., is charged in a two-count federal indictment dated May 1, 2013, with possession with intent to distribute methamphetamine and possession with intent to distribute heroin. He pleaded not guilty today before U.S. Magistrate Judge Valerie P. Cooke and was detained pending trial. If convicted on either count, he faces at least 10 years and a maximum of life in prison, and a $10 million fine.
Orozco, who was driving a tractor trailer containing watermelons, was pulled over by a Nevada Highway Patrol Officer on April 27, 2013, pursuant to a commercial vehicle inspection. Orozco consented to a search of the tractor trailer, and the Highway Patrol Officer discovered the methamphetamine and heroin wrapped in plastic under the sleeping compartment of the tractor in a large, black duffel bag.
This case is being prosecuted by Assistant U.S. Attorney James E. Keller, in coordination with White Pine County District Attorney Kelly Brown, and investigated by the Nevada Department of Public Safety, the Nevada Department of Investigations, and the United States Drug Enforcement Administration.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Trenton Resident Who Manufactured BombsSentenced Nine Years in PrisonRead the Press Release
A Trenton man was sentenced yesterday to nine years in prison for possessing explosives and making bombs, United States Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Acting Special Agent in Charge Daryl McCrary, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
John Robert Kennedy 43, formerly of St. Joe, Indiana, was sentenced to 108 months in prison by United States District Judge John Corbett O'Meara and ordered to pay a $20,000 fine.
Kennedy was convicted following a three-week jury trial of Possession of a Destructive Device, Felon in Possession of a Destructive Device and Manufacture of a Destructive Device. Prior to trial he pleaded guilty to being a Felon in Possession of Ammunition and Explosives.
The evidence presented at trial showed that on April 28, 2011, defendant, disguising his voice in a foreign accent, made a telephonic bomb threat to Trenton High School. Defendant threatened that four bombs would be detonated in the school within the hour. The school was evacuated and searched. Later that evening a device was found in the parking lot area of the school by a teacher. On April 29, 2011, defendant detonated another device in the parking lot of an ACO hardware store in Trenton. Witnesses described an explosion with clouds of white smoke. Remnants of a destructive device were found and were determined by forensic experts to contain explosive materials. Defendant was identified as the suspect who placed the devices through the use of a Crime Stoppers announcement on local television. Kennedy was previously convicted of similar criminal charges involving explosives.
Kennedy has been in custody since his indictment in July 2011.The case was prosecuted by Assistant United States Attorney Susan Gillooly with the assistance of ATF, Detroit Field Division and the Trenton Police Department.
Three Men Involved in Illegal Sports Betting Ring Are SentencedRead the Press Release
The United States Attorney for the District of Connecticut today announced that three men involved in illegal sports bookmaking have been sentenced in Hartford federal court. Today, U.S. District Judge Vanessa L. Bryant sentenced ANTHONY SANTORO, also known as “Skinny,” 49, of Staten Island, N.Y., to eight months of imprisonment and three years of supervised release, and MICHAEL VITTI, also known as “Peewee,” 33, of Stamford, to 10 months of imprisonment and three years of supervised release. DANIEL DEGRUTTOLA, also known as “Dannyboy,” 33, of Stamford, was sentenced yesterday to three months of home confinement and three years of supervised release. In addition, SANTORO was ordered to forfeit $25,000, and VITTI and DEGRUTTOLA were each ordered to forfeit $100,000.
According to court documents and statements made in court, after a long-term investigation led by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation and the Stamford Police Department, 20 individuals were charged with various offenses related to their involvement in an illegal Internet sports bookmaking operation and illegal card gambling clubs in Stamford and Hamden. The investigation, which included the use of court-authorized wiretaps, revealed that SANTORO, VITTI and DEGRUTTOLA and others were involved in a large-scale sports bookmaking operation in which gamblers placed bets with offshore Internet sports-gambling websites, particularly www.44wager.com based in Costa Rica.
FBI analysis of the sports-betting web site utilized by the co-defendants has determined that the total gross revenues of the Stamford-based gambling operation were nearly $1.7 million from October 2010 to June 2011.
SANTORO, VITTI and DEGRUTTOLA each previously pleaded guilty to one count of operating an illegal gambling business.
This matter is being investigated by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation, the Stamford Police Department, the Bridgeport Police Department and the Connecticut State Police. This case is being prosecuted by Assistant United States Attorneys Hal Chen and Peter Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Third Defendant Pleads Guilty to Fraudulent Tax Refund SchemeRead the Press Release
Defendant and Co-Conspirators Used False Tax Identification Numbers to Seek more than $5 Million in Refunds
CHARLOTTE, N.C. – A Charlotte woman charged in a scheme to defraud the government by obtaining false and fraudulent income tax refunds pleaded guilty in U.S. District Court today, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
Jeannine Hammett, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division joins U.S. Attorney Tompkins in making today’s announcement.
A criminal bill of indictment filed in December 2012, charged Ana Portillo, 42, of Charlotte (also known as Ana Portillo-Flores, Ana Flores-Portillo, Peladita Portillo or Lety Portillo), with one count of false claims conspiracy, for the filing of false tax returns seeking tax refunds based on fraudulently obtained Individual Taxpayer Identification Numbers (ITINs). According to court documents and today’s plea hearing, from in or about January 2012 and continuing to July 2012, Portillo and her co-conspirators agreed to defraud the U.S. Treasury Department by participating in a scheme to obtain false tax refunds. Court records show that the co-conspirators had obtained ITIN numbers for various individuals using Mexican birth certificates and other documents. The co-conspirators then used these ITIN numbers to prepare false federal tax returns seeking fraudulent refunds claiming false wage, income, and withholding information and claiming multiple dependents. According to court filings and court proceedings, part of the scheme was that the co-conspirators would rent apartments at complexes featuring centralized mailboxes and use addresses at the apartment complexes as the addresses on the fraudulent tax returns. Court documents indicate that the co-conspirators then caused the Treasury Department to mail the false tax refund checks to these specially chosen addresses.
According to the charging documents and information presented in court, at least 1,104 fraudulent tax returns have been associated with the conspiracy, claiming $5.1 million in refunds. Of this amount, the IRS issued refunds totaling approximately $1.6 million. Court records show that the co-conspirators would arrange for the refund checks to be cashed and would then deposit that cash into bank accounts or hold it in safety deposit boxes and wire it to Mexico.
Portillo entered her guilty plea before U.S. Magistrate Judge David S. Cayer. Her co-conspirators, Cathy Cisneros, 30, and Candida Figueroa, 42, both of Charlotte, previously pleaded guilty to one count of false claims conspiracy for the same scheme, in October and November 2012, respectively.
Portillo has been released on bond pending sentencing. Both Figueroa and Cisneros have been in local federal custody since August 2012. A sentencing date for Portillo and her co-conspirators has not been set. Each defendant faces a maximum prison term of 10 years, a $250,000 fine, or both.
The investigation was handled by IRS-Criminal Investigations Division with substantial assistance from the U.S. Postal Service. The prosecution is being handled for the government by Assistant U.S. Attorney Jenny Grus Sugar of the U.S. Attorney’s Office in Charlotte.
Texas Syndicate Prison Gang Members Sentenced Today for Their Roles in Conspiring to Engage in Racketeering Offenses Including Murder and Attempted MurderRead the Press Release
Two members of the Texas Syndicate prison gang, Adam Chavez and Alejandro Flores, were sentenced today by the Honorable Chief Judge Fred Biery, announced United States Attorney Robert Pitman.
Both defendants were named in a 2011 federal indictment that charged twenty-three members of the Texas Syndicate prison gang with multiple racketeering offenses that included murder, attempted murder, conspiracy to murder, and drug-trafficking.
Adam Chavez, pleaded guilty to conspiring to engage in racketeering. As part of his guilty plea Chavez admitted his role in July 2, 2011, the murder of PriscillaVidaurri, who was killed when she was struck by gunfire intended for her brother-in-law. Chavez and other members of the Texas Syndicate gang targeted a fellow member of the gang, but in a case of mistaken identity, shot at the brother of their intended target and in the process, killed Ms. Vidaurri and injured her husband. Neither Ms. Vidaurrri nor her husband had any connection to the gang. By his plea, Chavez also admitted to his role in the drug trafficking activities of the gang. Today, Chief Judge Biery sentenced Chavez to a 30 year prison sentence for his role in the conspiracy followed by a five year term of supervised release.
Alejandro Flores also pled guilty to conspiring to engage in racketeering. By his guilty plea, Flores admitted to having participated in a shooting of a San Antonio man on March 25, 2011, in which Flores and other members of the Texas Syndicate shot at a person they suspected was a rival gang member. As part of his guilty plea, Flores admitted his participation in a conspiracy to kill rival gang members. Today, Chief Judge Biery sentenced Flores to 10 years of imprisonment followed by a three year term of supervised release for his role in the conspiracy.
This case was prosecuted by Assistant United States Attorneys Joey Contreras and Karen Norris. This case was investigated by the Drug Enforcement Administration, who were assisted by the San Antonio Police Department, Bexar County Sheriff’s Office, Bureau of Alcohol, Tobacco, and Firearms, and the Texas Department of Pardons and Parole.
Texas Man Sentenced for Operating Phony Invoice SchemeRead the Press Release
MINNEAPOLIS-- Earlier today in federal court, a 43-year-old Texas man was sentenced in connection with the operation of a phony invoice scheme that defrauded an Eagan-based company out of more than $600,000. United States District Court Judge Patrick J. Schiltz sentenced Clayton Craig Hogeland, of Aurora, Texas, to 200 months in prison on five counts of mail fraud, two counts of conspiracy to commit mail fraud, two counts of conspiracy to commit money laundering, and three counts of tax evasion. Hogeland was indicted, along with two others, on March 17, 2010, and was convicted on December 6, 2011.
Judge Schiltz also found that Hogeland had obstructed justice by faking a life-threatening medical condition, which caused multiple delays to both his trial and sentencing hearing. Hogeland cited this condition in a motion seeking a reduction in his sentence. Judge Schiltz concluded that Hogeland faked this illness by ingesting high levels of potassium, and found that Hogeland’s conduct justified a substantial upward variance in his sentence. Judge Schiltz said that Hogeland’s actions reflected “an unfathomable dishonesty and audacious selfishness.”
The evidence presented at trial proved that from January 2003 through April 2005, Hogeland conspired with others, including Jeffrey Cole Bennett, to defraud Advantage Transportation, a freight transportation logistics provider headquartered in Eagan. Advantage contracts with customers who have freight to be transported as well as with trucking companies willing to move that freight. Hogeland was Advantage’s general manager, and in May of 2003, he hired his friend Bennett to be the sales manager for the company’s Tennessee office, where he remained employed through September of 2006. Bennett was also charged in the fraud case.Following today’s sentencing, Kelly R. Jackson, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation’s St. Paul Field Office, said, “The IRS enforces the nation’s tax and money laundering laws, but also takes particular interest in cases where someone, for their own personal benefit, has taken what belonged to others. Today’s sentencing of Mr. Hogeland shows how seriously the courts take federal tax and money laundering crimes.”
Craig I. Goldberg, Acting Postal Inspector in Charge of the Denver Division, which also covers the Twin Cities, added, “Postal inspectors will continue to protect the integrity of the U.S. Postal Service and aggressively investigate those cases where the U.S. mails are used to defraud individuals or businesses of money and property.”
To perpetrate the fraud, Bennett submitted false invoices to Advantage for nonexistent goods and services from four shell companies he formed: Air Catering Solutions and Marketing, Inc. (ACS Marketing), American Logistics Advisors, LTL Development.com, and Transportation Marketing Concepts. Bennett formed three of those companies for the sole purpose of conducting the fraud scheme. Payment of the invoices was then approved by Hogeland, who also caused checks to be issued to the shell companies, knowing the invoices were fraudulent. Between January of 2003 and April of 2005, those payments totaled more than $390,000.
Bennett kept approximately $250,000 of that money for himself, while paying out about $140,000 in kickbacks to Clayton Hogeland. To conceal those kickbacks, Bennett made the payments via checks issued to Clayton Hogeland’s wife, Jennifer Hogeland, who endorsed and deposited the checks into the couple’s joint bank account. In addition, Clayton Hogeland and Bennett routed the proceeds of the phony invoice scheme through Bennett’s shell companies, knowing the transfers were designed to conceal the fact that the money was obtained by fraud.
While employed by Advantage, Clayton Hogeland also orchestrated a second scheme to run false “commission” payments through fictitious companies formed by two other co-conspirators. That scam occurred after Advantage began providing freight transportation services to an airline company in 2003. Carl Frey, one of the co-conspirators, was employed by the airline and was responsible for arranging contracts with over-the-road shipping companies. At the direction of Hogeland, Frey formed a company, Flite Time, which Hogeland falsely characterized as a consultant, to be paid commissions from Advantage for freight assigned by the airline.
As a result, between 2003 and 2005, Frey was paid more than $90,000 in false “commissions” from Advantage, and Clayton Hogeland received $22,000 of that money in the form of kickbacks. All but two of the kickback payments were made by checks issued to Jennifer Hogeland, who deposited the funds into the couple’s joint bank account. The remaining two checks were issued in Clayton Hogeland’s own name.In 2005, Hogeland and Frey became concerned that Frey’s name was being associated with
Flite Time. Therefore, Hogeland recruited a second co-conspirator, William Gregory Braswell, to form a company that would replace Flite Time. That company, Air Cargo Consultants, began receiving the commission payments in 2005. Between 2005 and 2006, more than $180,000 in false commissions were paid by Advantage to Air Cargo Consultants. Out of those funds, Clayton Hogeland and Frey received $30,000 each. Again, payments were made by checks issued to Jennifer Hogeland.
In addition, Clayton and Jennifer Hogeland failed to report to the Internal Revenue Service or pay taxes on the money obtained through the two fraud schemes during tax years 2003 through 2005. However, after learning that the IRS was conducting a criminal tax investigation, the Hogelands sought to cover up their willful tax evasion by filing amended tax returns for tax years 2003 and 2004.
For his part, Bennett also failed to report or pay to the Internal Revenue Service (“IRS”) taxes on the money he obtained through the fraud scheme during tax years 2004 and 2005. After learning that the IRS was conducting a criminal tax investigation, he, like the Hogelands, sought to cover up his willful tax evasion by filing amended tax returns that included the fraud income.
On November 13, 2012, Bennett was sentenced to 95 months in federal prison for his role in the scheme. In February 2012, Braswell and Frey were sentenced, each to three years of probation. On January 10, 2013, Jennifer Hogeland was sentenced to 15 months in prison on three counts of conspiracy to commit tax evasion.
This case was the result of an investigation by the U.S. Postal Inspection Service and the IRS-Criminal Investigation. It was prosecuted by Assistant U.S. Attorneys Tim Rank and Julie E. Allyn.
This law enforcement action is in part sponsored by the interagency Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. It 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, investigates and prosecutes significant financial crimes, ensures just and effective punishment for those who perpetrate financial crimes, combats discrimination in the lending and financial markets, and recovers proceeds for victims of financial crimes.Swinomish Tribal Member Sentenced to 20 Years in Prison for Second Degree MurderRead the Press Release
An enrolled member of the Swinomish Indian Tribe was sentenced today in U.S. District Court in Seattle to 20 years in prison and five years of supervised release for second degree murder, announced U.S. Attorney Jenny A. Durkan. KEVIN S. O’LEARY, 55, a resident of the Lummi Reservation admitted that on June 7, 2012, he used a pillow to smother his common-law wife, Valerie Jefferson, who was a Lummi tribal member. O’LEARY then wrapped her body in a blanket and hid it under the bed. Law enforcement discovered Jefferson’s body five days later. At sentencing U.S. District Judge Robert S. Lasnik said, “This was an especially devastating domestic violence murder. The children lost their mother and grandmother. And the defendant’s actions after the death showed special callousness to those who loved Valerie Jefferson.”
According to the facts admitted in the plea agreement, O’LEARY and Jefferson had been arguing about an affair O’LEARY had had over a decade ago. After several hours of arguing, O’LEARY pushed Jefferson onto their bed, grabbed a pillow and held it tightly over her neck and pressed down until her body went limp and her eyes rolled up in her head. O’LEARY admits he killed Jefferson with malice aforethought, and wrapped the body in a blanket, and hid it under their bed. Both were enrolled tribal members and the murder was on Lummi tribal trust land, giving federal authorities jurisdiction in the case.
Speaking to the court Valerie Jefferson’s eldest daughter said, “We want him to know what he has taken from us. He’s taken away our mother and our father – he was the only father we knew….. My mom was a beautiful person. We hurt every day…. We are going to live in her honor the way she would have wanted us to be.”
Prosecutors noted that O’LEARY had previously caused the death of two other people writing to the court, “The defendant was convicted in 1981 with Negligent Homicide in Skagit County. In that case, the defendant was driving drunk when he missed a corner, and drove off the highway into a ravine. Two of his passengers were killed in the accident, including his girlfriend at the time. He received a 10-year sentence that was suspended, and he was placed on Probation.” Judge Lasnik noted that under today’s sentencing statutes, O’LEARY would have gotten far more prison time for that crime.
The case was investigated by Lummi Tribal police and the FBI. The case is being prosecuted by Assistant United States Attorney Jerrod Patterson.
Southern Oregon Conspirators Indicted in Scheme to Defraud Hundreds of VictimsRead the Press Release
MEDFORD, Ore. – Robert Powelson, 30, Eduardo Navarro, 24, Dallas Tedford, 32, Kayla Strange, 23, and Lana Marshall, 29, all of Medford, Oregon , were indicted by a federal grand jury. They were all charged with mail theft, aggravated identity theft, bank fraud and conspiracy to commit mail theft, and bank and mail fraud. The charges involve the theft of mail from over 800 victims from the Medford, Oregon area during a seven month period beginning in September 2012 and include a scheme for using the victim’s stolen personal identity to defraud banks and local businesses. Navarro and Tedford are currently in custody. Arrest warrants have been issued for Powelson, Strange, and Marshall and anyone with information about their whereabouts is requested to contact the Medford Police Department or their nearest law enforcement agency.
For more information, please see the attached Indictment Here
An indictment is only an accusation of a crime, and a defendant should be presumed innocent unless and until proven guilty. If convicted, the sentences range from maximum sentences of 5 to 30 years in prison, with a mandatory minimum sentence of two years for an aggravated identity theft conviction.
The U.S. Attorney’s Office is working with the U.S. Postal Inspection Service and the Medford Police Department in the investigation and prosecution of this case.
Somerset Man Admits Illegally Converting Social Security Benefits to His Own UseRead the Press Release
JOHNSTOWN, Pa. - A resident of Somerset, Pa., pleaded guilty in federal court in Johnstown to a charge of conversion of government funds, United States Attorney David J. Hickton announced today.
James E. Mimna, Jr., 56, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, from Oct. 1, 2007, to Dec. 31, 2012, Mimna did receive and falsely convert to his own use $107,458.10, which represents 156 payments made to him by the Social Security Administration to which he was not entitled.
Judge Gibson scheduled sentencing for Oct. 17, 2013, at 10:30 a.m. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Social Security Administration, Office of Inspector General, conducted the investigation that led to the prosecution of Mimna.
Six Persons Charged with Unlawfully Operating A Marijuana Dispensary in Las VegasRead the Press Release
LAS VEGAS, Nev. – Federal charges were unsealed today against six individuals, including three Californians, for unlawfully operating a marijuana dispensary in Las Vegas and unlawfully distributing marijuana, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Randy Ruley Phillips, 42, of Las Vegas, Nev.; Jaclyn Mikie Sumarnkant, aka “Turtle,” 27, of Alhambra, Calif.; Quy Nguyen, aka “Gabe”, 28, of San Diego, Calif.; Randy Allen Kim, aka “Kevin,” 24, of Las Vegas, Nev.; Andrew Yim, 24, of Las Vegas, Nev.; and Michael Minh Quang Dinh, 37, of Garden Grove, Calif., are charged in an indictment dated April 23, 1013. The indictment was unsealed today at the initial court hearing for defendants Randy Phillips and Michael Dinh. Defendants Phillips, Nguyen, Kim, Yim, and Dinh have already made initial appearances in court and were released on personal recognizance bonds pending trial.
Each defendant is charged with conspiracy to distribute marijuana, conspiracy to distribute THC distribution of marijuana, conspiracy to possess with marijuana with the intent to distribute, possession of marijuana with the intent to distribute, conspiracy to possess THC with the intent to distribute, possession of THC with the intent to distribute, conspiracy to maintain drug-involved premises, and maintaining drug-involved premises. Defendants Sumarnkant, Nguyen, Kim, and Yim face additional distribution of marijuana charges.
According to the indictment, beginning on about July 27, 2011, and continuing to Sept. 25, 2012, the defendants maintained the Alternative Solutions Marijuana Dispensary located at 6985 W. Sahara Avenue, Suite 110, in Las Vegas, Nev. for the purpose of distributing marijuana and THC. Marijuana dispensaries are not recognized under Nevada law, and it is illegal to sell marijuana in Nevada.
If convicted, they face up to twenty years in prison and fines of up to $1,000,000.
The investigation is being conducted as part of the Organized Crime Drug Enforcement Task Force (OCDETF) and the Nevada High Intensity Drug Trafficking Area (HIDTA) program. The case is being prosecuted by Assistant U.S. Attorney Amber M. Craig.The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Selby Man Sentenced for Fraudulently Accepting Payments from the Veterans' AdministrationRead the Press Release
United States Attorney Brendan V. Johnson announced that a Selby man convicted of Fraudulent Acceptance of Payments was sentenced on April 30, 2013, by U.S. Magistrate Veronica L. Duffy. Michael Kuehl, age 56, was sentenced to 2 years’ probation and ordered to pay $25 to the Federal Crime Victims Fund and $3,635.20 in restitution.
Between December 2011 and August 2012, Kuehl knowingly submitted applications for travel expenses he did not incur, resulting in payments to him for which he was not entitled. He pleaded guilty on May 1, 2013.
This case was investigated by the Department of Veterans’ Affairs, Office of Inspector General. Assistant U.S. Sarah B. Collins prosecuted the case.
San Francisco Man Charged with Failing to File Tax ReturnsRead the Press Release
SAN JOSE, Calif. – James P. Kleier was charged yesterday with three counts of failure to file a tax return, United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez announced.
According to the information, during 2008, 2009, and 2010, Kleier received gross income that included self-employment income in the amounts of $624,923, $476,088, and $200,734, respectively. He was required by law to file a federal income tax return with the IRS in 2008, 2009 and 2010, and willfully failed to do so.
Kleier, of San Francisco, is scheduled to make his initial appearance on June, 3, 2013, before Magistrate Judge Laurel Beeler.
The maximum statutory penalty for each count of failure to file a tax return, in violation of 26 U.S.C. § 7203 is one year imprisonment and a fine of $100,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Thomas Newman and Special Assistant U.S. Attorney Charles Parker are prosecuting this case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Please note, an information contains only allegations against an individual and, as with all defendants, Kleier must be presumed innocent unless and until proven guilty.
(Kleier Information )
Rockford Man Pleads Guilty to Illegally Possessing A FirearmRead the Press Release
ROCKFORD — A Rockford, Ill. man pleaded guilty today in federal court before U.S. District Judge Frederick J. Kapala to illegally possessing a firearm as a convicted felon. ROBERT J. GRAY, 34, admitted that on May 8, 2012, having previously been convicted of a felony, he possessed an SKS Norinco semi-automatic rifle with an obliterated serial number and sixteen rounds of ammunition at his home. In addition, Gray had approximately $372,993 in U.S. currency, six cell phones, a digital scale, a pocket scale, a heat sealer and bags, plastic grocery bags filled with rubber bands, and diamond jewelry at his home.
Gray is scheduled to be sentenced on Aug. 9, 2013, at 10:30 a.m. Gray faces a sentence of up to 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years following his release from prison. The actual sentence will be determined by the United States District Court, guided by the advisory United States Sentencing Guidelines.
The defendant was originally charged in state court, and is now charged in federal court under tough federal firearms laws as part of the Project Safe Neighborhoods program. Project Safe Neighborhoods is an intensive, cooperative effort between local, state, and federal law enforcement to attack gun crimes. The cornerstone of the program is that every defendant committing an offense involving a gun will be reviewed for possible federal prosecution in order to obtain the harshest penalties for the worst offenders. Additional information about Project Safe Neighborhoods may be found at: psn.gov.
The guilty plea was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; W. Larry Ford, Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives; Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Joseph Bruscato, Winnebago County State’s Attorney; and Richard Meyers, Winnebago County Sheriff.
The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.
Plea Agreement
Queens Doctor Indicted for Illegal Distribution of OxycodoneRead the Press Release
Earlier today, an indictment was unsealed charging Queens doctor Gracia L. Mayard with illegal distribution of oxycodone, a highly-addictive prescription medicine used to treat severe pain.1 Mayard is scheduled to be arraigned at 3:00 p.m. today before United States District Judge Joseph F. Bianco, at the United States Courthouse in Central Islip, New York.
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, New York, Thomas V. Dale, Commissioner, Nassau County Police Department, and Joseph A. D'Amico, Superintendent, New York State Police.
On March 20, 2013, as part of a federal and state prescription drug abuse initiative within the Eastern District of New York, Mayard was arrested by members of a DEA Tactical Diversion Squad, comprising DEA agents, Nassau County Police Department detectives, and New York State Police investigators, on charges of illegally distributing oxycodone between January 1, 2012 and March 15, 2013. Mayard has been in custody since his arrest.
According to court filings and records of the New York State Bureau of Narcotics Enforcement, during the first nine months of 2012, Mayard issued 2,953 oxycodone prescriptions for approximately 376,469 pills to numerous individuals without performing any meaningful medical examination and in exchange for cash. In some cases, Mayard allegedly issued the prescriptions without even meeting the purported patients. On February 6, 2013, members of the DEA Tactical Diversion Squad contacted Mayard concerning his prescription activity, at which time Mayard voluntarily surrendered his DEA registration that authorized him to prescribe controlled substances. However, as alleged in court filings, on February 28, 2013, Mayard nevertheless issued a prescription for oxycodone. On March 13, 2013, a pharmacist, in the presence of DEA agents, called Mayard about the prescription. During the call, Mayard confirmed that he had issued the prescription and provided his surrendered DEA registration number, all in an effort to persuade the pharmacist to fill the oxycodone prescription.
“Overdose deaths from prescription painkillers are now more frequent than those from heroin and cocaine combined – this is an epidemic,” stated United States Attorney Lynch. “The defendant looked at this epidemic and saw opportunity – not to save lives and heal suffering, but for personal profit. Rather than follow his oath to ‘do no harm,’ Mayard prescribed hundreds of thousands of highly addictive pills with complete disregard for where they would end up or who would take them.” Ms. Lynch expressed her grateful appreciation to the Drug Enforcement Administration, the Nassau County Police Department, and the New York State Police for their assistance in this investigation.
If convicted, the defendant faces a maximum sentence of 20 years’ imprisonment and a $1 million fine.
In January 2012, the United States Attorney’s Office for the Eastern District of New York and the DEA, in conjunction with the five District Attorneys in this jurisdiction, the Nassau and Suffolk County Police Departments, the New York City Police Department, and New York State Police, along with other key federal, state and local government partners, launched the Prescription Drug Initiative to mount a comprehensive response to what the U.S. Department of Health and Human Services’ Centers for Disease Control and Prevention has called an epidemic increase in the abuse of so-called opioid analgesics. So far, the Prescription Drug Initiative has brought over 120 federal and local criminal prosecutions, taken civil enforcement action against a pharmacy, removed prescription authority from numerous rogue doctors, and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The Initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
The government’s case is being prosecuted by Assistant United States Attorney Allen L. Bode.
The Defendant:
Name: GRACIA L. MAYARD
Age: 61_____________________________
1 The charges are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Principals of Bay Area Internet Services Company Sentenced for Mail Fraud and Money LaunderingRead the Press Release
SAN FRANCISCO– Roy Lin and John Lin were sentenced yesterday to 30 months and 20 months in prison, respectively, for their roles in operating a fraudulent billing scheme to place charges on customers’ telephone bills, United States Attorney Melinda Haag announced.
Roy Lin pleaded guilty on December 11, 2012, to one count of mail fraud and one count of money laundering. His brother, John Lin, pleaded guilty on December 11, 2012, to one count of mail fraud. According to the plea agreements, the Lins admitted to running INC21.com Corporation (INC21), including its affiliates GlobalYP, JumPage Solutions, and GoFaxer. INC21, based in San Francisco, provided Internet-based services and charged consumers for the services on the consumers’ local telephone bills, among other methods.
The Lin brothers fraudulently obtained access to bill for services on the consumers’ telephone bills by making false representations on applications. These applications were submitted to telephone companies in order to be approved to bill consumers in this manner. At sentencing, the Court found that through this scheme, INC21 and its affiliates collected revenues of between $2,500,000 and $7,000,000 from more than 250 victims.
Roy Lin, 43, and John Lin, 41, both of San Francisco, were indicted on March 27, 2012. Roy Lin and John Lin were each charged with conspiracy to commit mail fraud, six counts of mail fraud, and three counts of money laundering.
The sentence was handed down by U.S. District Court Judge William H. Alsup. Roy Lin was sentenced to 30 months in prison for one count of wire fraud and one count of money laundering, in violation of 18 U.S.C. § 1341 and 18 U.S.C. § 1957, respectively. John Lin was sentenced to 20 months in prison for wire fraud, in violation of 18 U.S.C. § 1341. Judge Alsup sentenced both defendants to a 3 year period of supervised release to follow their prison terms. Each defendant will begin serving his sentence on September 3, 2013.
Kyle Waldinger and Hallie Hoffman are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Rayneisha Booth and Elizabeth Garcia. The prosecution is the result of an investigation by the United States Postal Inspection Service and the Internal Revenue Service, Criminal Investigation.
Pittsburgh Man Sentenced to Six Years in Prison for ID Theft SchemeRead the Press Release
PITTSBURGH - A resident of Pittsburgh's North Side has been sentenced in federal court to 75 months incarceration on his conviction of conspiracy and aggravated identity theft, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Joseph Dees, a/k/a Joseph Lee, a/k/a Jay Dees, 52.
According to the information presented to the court, Dees conspired with other persons to obtain stolen identities to obtain unauthorized American Express and Discover credit card account information which he and others used to purchase merchandise in stores in Pennsylvania and West Virginia.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
Inspectors from the United States Postal Inspection Service along with agents from the United States Secret Service who, as part of the Western Pennsylvania Financial Crimes Task Force (WPFCTF), conducted the investigation that led to the successful prosecution of Joseph Dees. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Peabody Tax Preparer Charged with FraudRead the Press Release
BOSTON – A Peabody tax preparer was charged today with fraud and other related charges.
Barry N. Ginsberg, 61, was charged with wire fraud, five counts of mail fraud, 11 counts of aiding a false tax return, and obstructing the Internal Revenue Service. The indictment alleges that Ginsberg owned and operated a payroll tax business that had a number of so-called “escrow” clients. The escrow clients not only had their payroll tax returns prepared by Ginsberg’s payroll tax business, but also sent money to Ginsberg’s business on a weekly basis, to be held in escrow, for the purpose of paying their payroll taxes to the IRS. It is alleged that instead of paying these monies to the Internal Revenue Service, Ginsberg used the money for other business or personal reasons. Furthermore, Ginsberg also caused false quarterly employment tax returns to be filed with the IRS and provided to his clients the false returns stating that the clients’ payroll taxes had been paid in full, when they had not.
The fraud charges carry a statutory maximum penalty of 20 years in prison, followed by three years of supervised release and a fine of $250,000 or twice the gross gain or loss from the crime, whichever is greater. The tax charges carry a statutory maximum penalty of three years in prison, followed by one year of supervised release and a fine of $250,000 or twice the gross gain or loss from the crime, whichever is greater.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Jeremy Sternberg of Ortiz’s Economic Crimes Unit.
The details contained in the Indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Ozark Attorney Pleads Guilty to Failing to Pay TaxesRead the Press Release
SPRINGFIELD, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Ozark, Mo., attorney pleaded guilty in federal court today to willfully failing to pay both the payroll taxes he deducted from his employees’ paychecks and his personal income taxes.
Michael C. Stoffregen, 51, of Ozark, pleaded guilty before U.S. Magistrate Judge David P. Rush to one count of willfully failing to pay over his employees’ payroll taxes to the government and one count of willfully failing to file tax returns.
Stoffregen was the sole owner of The Disability and Elder Law Center (formerly the Law Offices of MC Stoffregen), located in Springfield, Mo. Stoffregen admitted that he deducted and withheld taxes from his employees’ paychecks (including federal income taxes and Social Security and Medicare taxes), but did not pay that money over to the IRS. Stoffregen failed to pay over $12,251 in employment taxes for the years 2009-2011.
Stoffregen also admitted that he willfully failed to file federal individual income tax returns for the years 2008-2011. Since the law office is an S-corporation, all profits (or net losses) are passed on to Stoffregen as the sole shareholder. According to the plea agreement, the law office had total gross profits during this time of $802,720.
Under federal statutes, Stoffregen is subject to a sentence of up to six years in federal prison without parole, plus a fine up to $35,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by IRS-Criminal Investigation.
Owner of Gemstar Capital Group Private Equity Company Sentenced to 120 Months in Federal Prison for Role in $40 Million Ponzi SchemeRead the Press Release
Defendant Jeffrey J. Sykes Also Ordered to Pay Nearly $17 Million in Restitution
FORT WORTH, Texas — Jeffrey J. Sykes, 54, of San Bernadino County, California, was sentenced this morning by U.S. District Judge John McBryde to 120 months in federal prison and ordered to pay $16,867,037 in restitution, following his guilty plea in January to two counts of securities fraud stemming from a Ponzi scheme he ran. Sykes, who was the owner of Gemstar Capital Group, Inc. (Gemstar), a California-based private equity company, was ordered to surrender to the Bureau of Prisons by May 24, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Sykes owned and operated Gemstar out of Redlands, California. In 2006, Sykes and “M.K.,” of Westlake, Texas, met at a golf tournament. Sykes told M.K. that Gemstar was a venture capital company interested in investing in emerging growth companies and that Gemstar was looking to supplement its planned venture capital operations by engaging a brokerage firm to assist it in buying and selling U.S. Treasury Bills (T-Bills).
M.K. asked Sykes whether he could participate, and in April 2007, Sykes and M.K. entered into an agreement in which M.K. solicited investors to participate in the T-Bill trading program described by Sykes. The next month, M.K. formed a limited liability company, known as KCG, and began to solicit investors. Using information Sykes provided, M.K. secured approximately 37 investors who invested more than $20 million. M.K. sent the money, minus fees he withheld for himself, to Gemstar to be invested by Sykes. However, unbeknownst to the investors, neither KCG nor Gemstar was engaged in any T-Bill trading program at the time of M.K.’s solicitations.
In addition to the funds that M.K. raised, Sykes personally raised more than $20 million from investors by making representations about a T-Bill trading program that were materially false or omitted material facts. In fact, none of the money was invested in a T-Bill trading program. Instead, Sykes and M.K. used some of the money for personal expenses. Some of the money was invested in ventures that the investors were unaware of and had not given their consent to participate in. Some of the money was returned to investors, although in some cases, Sykes falsely claimed that the funds represented the return of capital and/or profits from the T-Bill trading program.
Although Sykes used some of the investments he received for personal expenses, to pay partners, and for other purposes, he held a large portion of the invested funds in low-risk money market accounts. Because a substantial portion of investor funds were held in these accounts, investors were able to recover some of their investments.
Accounting for payments made to investors during the course of the scheme and money returned to investors after the termination of the scheme, investors collectively lost approximately $16,867,037. This amount includes losses incurred by the investors solicited by M.K., whose funds he subsequently sent to Sykes after taking a fee for himself.
The two counts of securities fraud to which Sykes is pleading specifically stem from false Gemstar account statements that Sykes used to deceive investors about the value of their investments.
This prosecution is 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. Attorney’s 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 http://www.stopfraud.gov/.
The case was investigated by the U.S. Postal Inspection Service and the FBI.
Oakdale Man Sentenced in Connection to $7 Million Mortgage Fraud ScamRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a 33-year-old Oakdale man was sentenced for his role in a mortgage fraud scheme that caused losses to lenders exceeding $7 million. On May 2, 2013, United States District Court Judge David S. Doty sentenced Bryan Joseph Lenton to three years of probation on one count of conspiracy to commit mortgage fraud through interstate wire. Lenton was indicted, along with two others, on December 7, 2010, and pleaded guilty on March 8, 2011. He cooperated with authorities in the prosecution of his co-defendant, John Anthony Spencer, and in the investigation and cooperation of James Hoffman, another mortgage fraud defendant currently serving a 78-month sentence.
In his plea agreement, Lenton, a real estate appraiser, admitted he provided appraisals for properties that falsely inflated market values in order to create a pool of funds to be split among him, his co-defendants, and straw buyers.
The scam, orchestrated by Spencer, involved brokering fraudulent loans that were used by recruited purchasers to buy residential real estate at inflated prices. The transactions generated proceeds that greatly exceeded what the sellers were content to accept as full payment for their properties. The excess money was split up among the buyers Spencer recruited as well as Spencer himself and accomplices he solicited in an effort to bring the transactions to fruition.
The properties included six single-family homes in north Minneapolis, five residential
condominium units located on Fisk Avenue in St. Paul, four condo units located on Dayton
Avenue in St. Paul, a home in Albertville, Minnesota, and two investment properties located in
north Minneapolis.
Spencer, a mortgage broker at Minnesota One Mortgage, agreed to assist the owner of a
five-plex condominium unit on Fisk Street in St. Paul to sell those units. To that end, Spencer
recruited Lenton to appraise each of the units at substantially more than the owner of the units
was willing to accept as full payment for them. Spencer then recruited straw buyers to purchase
the units with loan proceeds obtained via fraudulent loan applications prepared by Spencer and
Patrick Arthur Dols, another mortgage broker.
On October 31, 2011, Spencer, age 33, of Albertville, was sentenced to 125 months in prison
on one count of conspiracy, ten counts of wire fraud, one count of bank fraud, and one count of
money laundering. He was convicted on June 2, 2011, after a three-week jury trial.
On November 29, 2012, Dols, age 40, of Minneapolis, was sentenced to one year and one
day in prison on one count of conspiracy. He pleaded guilty on March 1, 2011. In his plea
agreement, Dols admitted that his role in the conspiracy was to take fraudulently drafted loan
applications in the names of various straw buyers and find lenders willing to make mortgage
loans based on the false information he was providing.
This case was the result of an investigation by the Internal Revenue Service-Criminal
Investigation. It was prosecuted by Assistant U.S. Attorney David J. MacLaughlin.
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.New York State Assemblyman William F. Boyland Charged with Mail Fraud Conspiracy for Defrauding New York StateRead the Press Release
A second superseding indictment against New York State Assemblyman William F. Boyland, Jr. was filed today in the United States District Court for the Eastern District of New York. Boyland has served in the New York State Assembly representing the 55th District in Brooklyn since 2003. As alleged in the latest indictment, from July 2007 to September 2010, Boyland engaged in a scheme to defraud New York State by steering public funds to a Brooklyn-based non-profit organization (“Non-Profit A”) and then directing that a portion of those public funds be used to pay for community events promoting Boyland and on goods such as t-shirts imprinted with the slogan “Team Boyland” which were distributed at those events. 1
To conceal this scheme, Boyland allegedly directed members of his staff to instruct vendors involved in the community events to falsely list Non-Profit A, and not Boyland, as the purchaser on invoices for goods purchased for the events. A representative of Non-Profit A then submitted the fraudulent invoices to the New York State Office for the Aging (“NYSOFA”), which administered the public funds, without disclosing that these invoices were for events and goods promoting Boyland. In furtherance of the scheme, a representative of Non-Profit A also submitted Certification Forms to the NYSOFA that falsely stated, among other things, that the public funds would not be used for “partisan political activity,” and that Boyland had not and would not receive, either directly or indirectly, any financial benefit from Non-Profit A relating to the public funds.
The filing of the second superseding indictment was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office. Ms. Lynch expressed her grateful appreciation to the New York State Comptroller’s Office for its assistance in this phase of the investigation.
If convicted on the new mail fraud conspiracy, Boyland faces a maximum sentence of 20 years in prison, a $250,000 fine, and restitution.
The government’s case is being prosecuted by Assistant United States Attorneys Robert Capers and Lan Nguyen.
The Defendant:
WILLIAM F. BOYLAND, JR.
Age: 42_____________________________
1 The charges contained in the indictments are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
New Bedford Drug Dealers Arraigned on Drug Trafficking IndictmentRead the Press Release
BOSTON – Three men, one from Bourne and two from New Bedford, were arraigned late yesterday on an indictment charging them with heroin distribution and related crimes.
Francisco Monteiro, 32, of Bourne, is charged with conspiracy to distribute over a kilogram of heroin and distribution of heroin; Manuel Lopes, 34, of New Bedford, is charged with conspiracy to distribute over a kilogram of heroin, distribution of heroin, and possession with intent to distribute heroin; and Harry Parsons, 25, of New Bedford, is charged in the indictment with conspiracy to distribute over a kilogram of heroin and distribution of heroin.
According to an affidavit previously filed in court, the government advised that Monteiro, a/k/a Cisco, Lopes, and a third man, now identified as Parsons, conspired to distribute over 100 grams of heroin. On February 15, 2013, Monteiro and Lopes arranged and facilitated the sale of almost 100 grams of heroin to a cooperating witness in New Bedford. The DEA recorded telephone calls to Monteiro in which he agreed to provide heroin to a cooperating witness. Monteiro and Lopes drove with the cooperating witness to Parsons’ address in New Bedford where the heroin sale was completed. Furthermore, Monteiro and Lopes further planned and arranged for the sale of an additional 50 grams of heroin to the cooperating witness that was to take place on February 25, 2013, although the sale was not completed.
During an earlier hearing, the government advised that when Lopes was arrested on March 1, 2013, agents seized approximately 7,500 packages of heroin from Lopes’ home, as well as several large packages of marijuana, brass knuckles, and a bullet-proof vest. When Monteiro was arrested at his home on March 1, 2013, agents recovered the recorded buy money from the February 25, 2013 attempted purchase of heroin, as well as a small quantity of heroin (consistent with the packaging found at Lopes’ residence).
Monteiro has prior convictions for drug distribution and unlawful possession of a firearm. Monteiro faces a mandatory minimum sentence of 20 years in prison, a maximum penalty of life in prison, a fine of $20 million, and a minimum of 10 years supervised release.
In 2003, Lopes was convicted in U.S. District Court in Boston for gun and drug trafficking and received a sentence of 130 months. Lopes is still on supervised release for those offenses. Lopes faces a maximum sentence of life in prison, a fine of $20 million, and a minimum of 10 years supervised release.
If convicted, Parsons faces a mandatory minimum sentence of 20 years in prison, a maximum penalty of life in prison, a fine of up to $20 million, and a minimum of 10 years supervised release.
United States Attorney Carmen M. Ortiz; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; C. Samuel Sutter; Bristol County District Attorney; Sherriff Thomas M. Hodgson of Bristol County; Bourne Police Chief Dennis R. Woodside; and Wareham Police Chief Richard M. Stanley made the announcement today.
This case is being prosecuted by Christopher Pohl in Ortiz’s Organized Crime Strike Force Unit.
Mount Holly Springs Man Pleads Guilty to Distributing Drug That Resulted in DeathRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Mount Holly Springs man pled guilty in United States District Court in Harrisburg Thursday to distributing heroin that resulted in the death of a Carlisle area man.
According to United States Attorney Peter J. Smith, Derk Roberts, age 29, of Mount Holly Springs, pled guilty before Senior U.S. District Court Judge William W. Caldwell in Harrisburg to a charge of unlawfully distributing heroin in the Cumberland County area during the period of time beginning in January of 2010 until February 9, 2011. The heroin distributed by Roberts caused the death of Joshua Michael Hamman, age 27, of Carlisle.
The evidence presented in court established that on February 4, 2011 at approximately 3:25 p.m. a worker at the PPG glass manufacturing facility in South Middleton Township, Cumberland County, found Hamman unconscious on the floor of a bathroom stall in the locker room/bathroom of the plant. Hamman had injected heroin and passed out. Facility staff administered CPR to Hamman until EMS personnel arrived and transported him to the Carlisle Regional Medical Center. Hamman was admitted to the ICU where on February 8, 2011 Hamman was taken off of life support and subsequently died at 8:15 pm that day.
The Pennsylvania State Police and the Federal Bureau of Investigation conducted an investigation that established that Hamman had been in touch with Roberts the morning of February 4, 2011 via cell phone text messages. Hamman was asking the defendant if he could get heroin from Roberts later in the day. During the next few hours Hamman and Roberts exchanged text messages in which it was discussed that Roberts would be getting heroin in Maryland and would deliver it to Hamman at the PPG facility. At around 2:42 in the afternoon that day Roberts met Hamman in the PPG parking lot and provided him with several packets of heroin and then left. Hamman went back into work and into the bathroom stall where he injected the heroin and passed out. The autopsy determined that Hamman died as a result of opiate toxicity.
Roberts was later interviewed by agents with the FBI and state police and admitted that he in fact sold Hamman the heroin on February 4, 2011. Roberts admitted that he had been selling heroin for about a year before he sold the heroin that led to Hamman’s death.
Roberts entered into a plea agreement with the United States which, if accepted by the court, requires the court to impose a sentence of no less than 6 years nor more than 8 years imprisonment. Roberts also faces a fine of up to $1 million dollars and a supervised release term of no less than three years. A sentencing date has not been scheduled.
The matter was investigated by the Federal Bureau of Investigation, Pennsylvania States Police and the Cumberland County Drug Task Force.
The case was prosecuted by Assistant United States Attorney William A. Behe who is assigned to the Organized Crime Drug Enforcement Task Force.
Midland Man Arrested on Firearms ChargesRead the Press Release
Midland resident and land surveyor, Steven Leonard Prewit, was arrested Thursday, May 2, 2013, on a sealed criminal complaint charging Prewit with possession of unregistered firearms, announced United States Attorney Robert Pitman, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Dallas Field Office Special Agent in Charge Robert Champion and Federal Bureau of Investigation (FBI) Special Agent in Charge Mark Morgan.
Today, Prewit appeared before United States Magistrate Judge David Counts, in Midland, Texas, for his initial appearance, at which time, the complaint against Prewit was unsealed. The complaint alleges that Prewit was in possession of fully automatic firearms, improvised explosive devices and silencers which did not have the serial numbers or manufacturing markings required by law. Federal law requires that firearms, silencers and destructive devices be identified by a serial number. Federal law also requires that these items be registered with the ATF National Firearms Branch, which records the identity of the registered owner in the National Firearms Registration and Transfer Record. The complaint alleges that the fully automatic firearms, unmarked silencers and improvised explosive devices were not registered to Prewit in the National Firearms Registration and Transfer Record, as required by law. Prewit faces a sentence of up to ten years imprisonment on this charge.
He is scheduled to appear before the Honorable Judge Counts on Wednesday, May 8, 2013, for a preliminary and detention hearing. Prewit is being held without bond pending that hearing.
Assistant United States Attorneys LaTawn Warsaw and John Klassen are prosecuting this case on behalf of the Government.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Maryland Man Pleads Guilty to Harboring South Korean WomenRead the Press Release
ALEXANDRIA, Va. – Youn Sok Chang, also known as “Michael Chang,” 35, of Gambrills, Md., pleaded guilty yesterday to Conspiracy to Commit Alien Harboring. Chang, who is originally from South Korea, was the owner and operator of a “doumi” business that provided female escorts to customers at nightclubs in Annandale, Virginia.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and John P. Torres, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Washington, D.C, made the announcement after the plea was accepted by United States District Judge T. S. Ellis, III.
Chang faces a maximum penalty of ten years of imprisonment when he is sentenced on July 26, 2013. Chang also agreed to forfeit $144,000.
In a statement of facts filed with his plea agreement, Chang admitted that since at least December 2010, he has operated a doumi business that provided female companionship to men in Annandale, Virginia. Chang’s doumi business was known at various times as “Da Bong,” “Coco,” and “Romance.” Chang hired illegal aliens from South Korea to work as “doumis,” and he housed these women in an apartment he had rented in Virginia. Various nightclubs in Annandale and Centreville would call Chang and order women for customers. Chang would then transport the women to the various clubs. Generally customers were charged $70 per hour to converse, dance, or sing with the women.
Chang also admitted that he and co-conspirators recruited women from South Korea to serve as doumis and he transported some of the women from Georgia and New York to Virginia. Chang promised one woman he sought to recruit that she could earn $6,000 per month working for Chang. Chang and his coconspirators admitted to harboring at least 27 illegal aliens. One of Chang’s co-conspirators, Taeson Won, previously pleaded guilty to Conspiracy to Commit Alien Harboring and was sentenced to 15 months in federal prison for his role in the offense.
This case was investigated by Homeland Security Investigations of U.S. Immigration and Customs Enforcement. Assistant United States Attorney Michael J. Frank is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Marion Man Charged with Wire Fraud, Money Laundering, and Aggravated Identity TheftRead the Press Release
Randy Beltramea, from Marion, Iowa, has been charged with two counts of wire fraud, three counts of money laundering, and one count of aggravated identity theft. The charges are contained in an Indictment filed on April 19, 2013, in United States District Court in Cedar Rapids.
The Indictment alleges that, beginning in or around 2009 and continuing through 2011, Beltramea executed a scheme to defraud others of money by soliciting approximately of $125,000 from them falsely representing to them the money would be used to invest in Subway restaurant franchises, when Beltramea actually intended and did use the money in relation to his own real estate development. In connection with this scheme, the Indictment alleges Beltramea laundered the proceeds of the fraud on three occasions to make payments to support his real estate development. The Indictment further alleges that, in inducing one of the victims to invest in Subway franchises, Beltramea used the name of another person, without that person’s permission, on a promissory note purporting to represent that person would repay the victim’s money.If convicted on all counts, Beltramea faces a mandatory minimum sentence of two years’ imprisonment and a possible maximum sentence of 72 years’ imprisonment, a $1.5 million fine, $600 in special assessments, and 18 years of supervised release following any imprisonment.
Beltramea appeared on April 30, 2013, in federal court in Cedar Rapids and was released on bond pending trial. Trial in the matter is set for July 1, 2013.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Internal Revenue Service.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-CR-20.
Manassas Woman Sentenced to 18 Months for Illegally Buying and Selling More Than 31 Handguns in 15 DaysRead the Press Release
ALEXANDRIA, Va. – Kimberly Yvette Dinkins, 44, of Manassas, Va., was sentenced to 18 months in prison, followed by two years of supervised release, for dealing firearms without a license.
Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia, and Carl J. Vasilko, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division, made the announcement after the sentencing by United States District Judge Claude M. Hilton.
According to documents filed in connection with the case, Dinkins purchased 31 firearms – all handguns – on three consecutive weekends from Nov. 17 through Dec. 1, 2012. She purchased these firearms at three separate gun shows in Chantilly, Richmond, and Hampton, Va. Dinkins, who was not a federally licensed dealer of firearms, purchased the handguns with the intention of selling them for profit.
Filings associated with the case state that the firearms bought and sold by Dinkins were eventually recovered from juveniles and felons who utilized the firearms during drug trafficking schemes. Specifically, on Nov. 30, 2012, local law enforcement in Prince George’s County, Md., recovered one of the firearms bought and sold by Dinkins from a 20 year old Maryland man during the course of a narcotics investigation. On Dec. 12, 2012, local law enforcement in Prince George’s County recovered a second firearm bought and sold by Dinkins from a 19 year old Maryland man, again during the course of a narcotics investigation. Both Maryland men have pleaded guilty to possession of firearms-related charges in Maryland state court.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
This investigation is being conducted by ATF’s Washington Field Division. Special Assistant United States Attorney L. Rush Atkinson and Virginia Assistant Attorney General and Special Assistant United States Attorney Marc J. Birnbaum are prosecuting the case on behalf of the United States.Lexington Man Sentenced to 30 Years for Drug, Firearm, and Money Laundering OffensesRead the Press Release
LEXINGTON, KY - A Lexington man, who used proceeds from trafficking cocaine to purchase houses and vehicles, was sentenced to 30 years in prison for multiple federal offenses.
Chief U.S. District Judge Karen C. Caldwell sentenced 35-year-old Marquis Deron Heard on Thursday for distribution of cocaine, possession of a weapon by a convicted felon, and 29 counts of money laundering.
Heard was found guilty by a jury of the charges earlier this year. The evidence at trial established that, between 2008 and 2011, Heard was involved in trafficking large quantities of cocaine, from a Mexican source, into Lexington for distribution. The testimony at trial revealed that Heard had distributed at least 45 kilograms of cocaine.
Evidence at trial showed that Heard reinvested the proceeds of the drug transactions into the purchase of multiple vehicles and residences in both Lexington and Louisville. Heard was also found in possession of firearms at the time of his arrest. The jury convicted Heard in January of 2013 after four days of trial.
Under federal law, Heard must serve at least 85 percent of his prison sentence, and, upon release, will be under the supervision of the U.S. Probation Office for 10 years.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, Robert L. Corso, Special Agent in Charge, Drug Enforcement Administration and Christopher A. Henry, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, jointly made the announcement today.
The investigation was conducted by the Lexington Police Department, the DEA, and the IRS. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorney J. Hamilton Thompson.
Leader of $29.1 Million Medicare Fraud Scheme Pleads Guilty in DetroitRead the Press Release
The mastermind of a $29.1 million Medicare fraud scheme involving approximately 30 purported medical clinics pleaded guilty today in Detroit for his role in the scheme.
The guilty plea was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Robert D. Foley III of the FBI’s Detroit Field Office; Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Chicago Regional Office; and Special Agent in Charge Erick Martinez of the Internal Revenue Service Criminal Investigation (IRS-CI) Detroit Field Office.
Sachin Sharma, 37, of Detroit, pleaded guilty before U.S. District Judge Denise P. Hood in the Eastern District of Michigan to one count of conspiracy to commit health care fraud and one count of tax evasion.
According to court documents, Sharma oversaw and directed operations of a broad network of home health, psychotherapy and other purported medical clinics in and around Detroit, including Reliance Home Care LLC, First Choice Home Health Care Services Inc. and Haven Adult Day Care Center LLC. Working with co-conspirators, Sharma created and/or operated these companies for the purpose of billing Medicare for home health and psychotherapy services that Sharma knew were not provided. Court documents show that Sharma paid kickbacks to patient recruiters in order to obtain the information of Medicare beneficiaries, which he then used at these companies to bill Medicare for services that were not medically necessary and/or were not provided to these beneficiaries.
Court documents show that Sharma trained others on techniques to defraud Medicare and to conceal the fraud, and directed employees to fabricate and alter medical documents to give the false impression that home health and psychotherapy services were provided when, in fact, they were not.
Sharma admitted that from 2007 through 2011, he received substantial proceeds of the fraud from these companies, but failed to report these proceeds on his individual federal income tax returns. Sharma admitted that he filed no individual income tax returns from 2007 through 2011.
Court documents allege that between 2007 and 2012, Sharma caused these companies to submit approximately $29,171,017 in claims to Medicare for services that were not medically necessary and/or not provided.
At sentencing, scheduled for Aug. 8, 2013, Sharma faces a maximum penalty of 10 years in prison and a $250,000 fine.
Sachin Sharma’s co-defendants Dana Sharma, Beverly Cooper and Clarence Cooper each previously pleaded guilty to one count of conspiracy to commit health care fraud for their roles in the scheme. Co-defendants Abdul Malik al-Jumail, aka “Tony,” Felicar Williams and Jamella al-Jumail are scheduled for trial on June 10, 2013. Co-defendant Firas Alky remains a fugitive. Defendants are presumed innocent unless and until proven guilty at trial.
This case is being prosecuted by Trial Attorney William G. Kanellis and Deputy Chief Gejaa Gobena of the Criminal Division’s Fraud Section, with assistance from the Department of Justice Tax Division. It was investigated by the FBI, HHS-OIG, and IRS-CI, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Kidnapping Suspect Appears in Federal CourtRead the Press Release
Jackson, Miss. – Shamaruis Ruffin, 25, and Wanda Faye Dancy, 51, appeared before U.S. Magistrate Judge Keith Ball today pursuant to a criminal complaint charging her with kidnapping, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen.
The court found that Ruffin and Dancy should be detained pending a preliminary hearing and a detention hearing scheduled for May 9, 2013, at 9:00 a.m.
According to the complaint, on May 2, 2013, Ruffin was asked by Jesse Mae Brown Pollard if she would ride with her and babysit for her. Ruffin agreed to do so.Pollard drove to the East Kemper Elementary School. Ruffin overheard Pollard talking to Wanda Dancy on the telephone (Dancy is a secretary at East Kemper Elementary School). Ruffin heard Dancy telling Pollard where the victim was located in the school and what she was wearing. Ruffin was told to go to the library in the school and tell Mrs. Simmons that she was there to get the victim and that “Mrs. Wanda said it was alright”. Ruffin did as she was directed. On the way out of the school, Ruffin passed by the office and Dancy waved at her and smiled. Ruffin and the victim got in the vehicle with Pollard and drove away.
Ruffin, Pollard and the victim drove down several roads in Alabama. At some point, Ruffin wanted to get out of the car so they stopped and Ruffin got out of the vehicle. Ruffin contacted an acquaintance to pick her up. The acquaintance picked Ruffin up somewhere near Interstate 20/59 East of Livingston, Alabama and Ruffin returned home.
The penalty for kidnapping is a minimum of 20 years and a maximum of life in prison. The Federal Bureau of Investigation, along with Mississippi Bureau of Investigation, Mississippi Highway Patrol, Kemper County Sheriff’s Office and Lauderdale County Sheriff’s Office conducted the investigation in this case.
The public is reminded that a Criminal Complaint is an accusation and a defendant is
presumed innocent until proven guilty in a court of law.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Kent, Washington Father and Stepson Indicted on Drug and Gun CrimesRead the Press Release
A Kent, Washington man and his stepson were arrested this morning following their indictment on seven criminal counts related to gun sales and controlled substance distribution, announced U.S. Attorney Jenny A. Durkan. The indictment alleges that MARK E. BRYANT, 49, and his step-son ANDREW GAGLEY, 30, illegally distributed Demerol. BRYANT is also charged in four different counts with distributing oxycontin, hydrocodone, and morphine on three different days in September and October 2012. BRYANT is also charged with selling a firearm to a drug user. GAGLEY is separately charged with selling a firearm to a felon and illegal alien. Both men will appear in U.S. District Court in Seattle today at 1:30.
BRYANT owns Westside Guns and East Valley Auto Rebuild on South 222nd Street in Kent. On multiple occasions BRYANT sold guns or drugs to persons working with law enforcement on the property of his Kent gun shop. GAGLEY also participated in gun and drug sales in and near the business. On October 26, 2012, GAGLEY allegedly sold a Colt .556 caliber, semi-automatic rifle to a person working with law enforcement. GAGLEY allegedly made the sale knowing that the person was prohibited from purchasing firearms because the buyer was in the U.S. illegally and was a convicted felon. Just two days before, on October 24, 2012, BRYANT illegally sold a Firestar .45 pistol handgun to a person he knew to be a drug user. As a Federal Firearms Licensee, BRYANT is required to file paperwork on gun sales and to maintain acquisition records on all firearms received and transferred to other persons.The arrests today are the culmination of an eight month investigation by the South Sound Task Force. The South Sound Task Force is comprised of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Lakewood Police Department (LPD) and the Washington State Liquor Control Board (WSLCB); with assistance from U.S. Customs and Border Protection’s Office of Air and Marine.
The charges contained in the indictment 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.
Each of the crimes charged are punishable by up to twenty years in prison and three years of supervised release.
The case is being prosecuted by Assistant United States Attorney Ye-Ting Woo.
Justice Department Expands Its Barrier-Free Health Care Initiative with Settlement with Burke Health and Rehabilitation Center in Burke, VirginiaRead the Press Release
The Justice Department announced today that, as part of its Barrier-Free Health Care Initiative, it has reached a settlement agreement with another health care provider, Medical Facilities of America XXIX Limited Partnership, t/a Burke Health and Rehabilitation Center in Burke, Va., to ensure that they provide effective communication to people who are deaf or have hearing loss. This settlement resolves allegations that Burke refused to provide a sign language interpreter for Melvin Warden, who is deaf, when a request was made on his behalf by Inova Fairfax via the AllScripts/Ecin system. This settlement addresses the requirements of the Americans with Disabilities Act (ADA) for health care providers, such as hospitals, rehabilitation centers, medical clinics, nursing homes and doctor’s offices, to provide effective communication to people who are deaf or have hearing loss in the provision of medical services.
The Department of Justice’s Barrier-Free Health Care Initiative is a partnership of the Civil Rights Division and U.S. Attorney’s offices across the nation to target enforcement efforts on a critical area for individuals with disabilities. The initiative, launched on the 22nd anniversary of the ADA in July 2012, includes the participation of more than 40 U.S. Attorney’s offices.
To date, the department has entered into seven similar settlements with eight health care providers from across the United States regarding communication with people who are deaf or have hearing loss. In addition, the department reached four agreements in five weeks with health care providers regarding discrimination against individuals with HIV.
“Disability-based discrimination in health care is illegal under the Americans with Disabilities Act and may further compromise a person’s health when it limits a person’s full access to medical services,” said Eve L. Hill, Senior Counselor to the Assistant Attorney General for the Civil Rights Division. “The Department of Justice is committed to ensuring that all persons with disabilities are provided with equal access to health care services.”
Title III of the ADA requires health care providers to ensure that their communications with people with hearing disabilities are as effective as their communications with people without disabilities. To meet this obligation, health care providers, as well as other public accommodations, must provide auxiliary aids and services unless doing so would cause an undue burden to the facility or fundamentally alter the service being provided. The health care provider may not charge the individual with a disability for the cost of the auxiliary aid or service, including a sign language interpreter.
Under this settlement agreement, Burke will ensure effective communication, including providing qualified sign language interpreters, free of charge, to individuals who are deaf or who have hearing loss; establish a contract for the provision of sign language interpreter services; ensure that, for the duration of a patient’s treatment at Burke, at least one qualified sign language interpreter is available or on call for a patient or companion who is deaf or has hearing loss and whose primary means of communication is sign language; and train all staff on the provisions of the effective communication policy and procedures and the effective communication requirements of the ADA.
The department has a number of publications available to assist entities to comply with the ADA, including: a Business Brief on Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings, www.ada.gov/hospcombr.htm ; publications specific to health care providers, HIV discrimination, and effective communication with individuals with hearing and vision disabilities; and publications about tax credits available for providing access. For more information on the ADA and to access these publications, visit www.ada.gov . The Barrier-Free Health Care Initiative settlement agreements may be found at www.ada.gov/settlemt.htm . For more information on the Barrier Free Health Care Initiative visit www.ada.gov/usao-agreements.htm . Those interested in finding out more about these settlements or the obligations of public accommodations under the ADA may also call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov . ADA complaints may also be filed by email to [email protected] .
Judge Sentences Sharon Tax Evader to Five Years Probation with 14 Months ConfinementRead the Press Release
PITTSBURGH - A resident of Sharon, Pa., has been sentenced in federal court to 60 months probation, including 7 months confinement at Renewal, Inc., followed by 7 months home confinement, a $5,000 fine and $400 special assessment on his conviction of income tax evasion, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Joseph E. Gump.
According to information presented to the court, Gump filed federal income tax returns for the calendar years 2003 through 2006, wherein he stated in each year that the amounts of his taxable income and tax were "none," when his form W-2 wage income in those years ranged from $59,455.49 to $84,267.70, and the tax loss to the IRS ranged from $3,900 to $13,631.
Prior to imposing sentence - in which he departed downward from the Sentencing Guidelines range due to Gump's recent stroke and affliction with two types of cancer - Judge McVerry stated that although Gump was a first offender, it was only the first time he had been caught, having "thumbed his nose" at other taxpayers and scoffed at the Tax Code for many years.
Assistant United States Attorney Leo M. Dillon prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service, Criminal Investigation for the investigation leading to the successful prosecution of Gump.
Joshua Emil Runion Found Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that on May 1, 2013, in Helena, after a federal district court trial before Senior U.S. District Judge Charles C. Lovell, JOSHUA EMIL RUNION, a 41-year-old resident of Oregon, was found guilty of counterfeiting U.S. currency. Sentencing is set for September 12, 2013. He is currently detained.
Assistant U.S. Attorneys Bryan R. Whittaker and Zeno B. Baucus prosecuted the case for the United States.
RUNION faces possible penalties of 20 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by the U.S. Secret Service.
International Cybercriminal Extradited from Thailand to the United StatesRead the Press Release
Algerian national Hamza Bendelladj, aka “Bx1,” has been extradited from Thailand to the United States to face charges in Atlanta for allegedly playing a critical role in developing, marketing, distributing and controlling “SpyEye,” a pernicious computer virus designed to steal unsuspecting victims’ financial and personally identifying information.
The charges were announced today by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Sally Quillian Yates of the Northern District of Georgia and FBI Special Agent in Charge Mark F. Giuliano of the Atlanta Field Office.
Bendelladj, 24, has been charged in a 23-count indictment that was returned on Dec. 20, 2011, and unsealed today. The indictment charges Bendelladj with one count of conspiring to commit wire and bank fraud, 10 counts of wire fraud, one count of conspiracy to commit computer fraud and 11 counts of computer fraud. Bendelladj is scheduled to be arraigned today in U.S. District Court in the Northern District of Georgia before U.S. Magistrate Judge Janet F. King.
On Jan. 5, 2013, Bendelladj was apprehended at Suvarnabhumi Airport in Bangkok, Thailand, while he was in transit from Malaysia to Egypt. He was extradited from Thailand to the United States on May 2, 2013.
“Hamza Bendelladj has been extradited to the United States to face charges of controlling and selling a nefarious computer virus designed to pry into computers and extract personal financial information,” said Acting Assistant Attorney General Raman. “The indictment charges Bendelladj and his co-conspirators with operating servers designed to control the personal computers of unsuspecting individuals and aggressively marketing their virus to other international cybercriminals intent on stealing sensitive information. The extradition of Bendelladj to face charges in the United States demonstrates our steadfast determination to bring cybercriminals to justice, no matter where they operate.”
“No violence or coercion was used to accomplish this scheme, just a computer and an Internet connection,” said U.S. Attorney Yates. “Bendelladj’s alleged criminal reach extended across international borders, directly into victims’ homes. In a cyber-netherworld, he allegedly commercialized the wholesale theft of financial and personal information through this virus which he sold to other cybercriminals. Cybercriminals take note; we will find you. This arrest and extradition demonstrates our determination to bring you to justice.”
“The FBI has expanded its international partnerships to allow for such extraditions of criminals who know no borders,” said FBI Special Agent in Charge Giuliano. “The federal indictment and extradition of Bendelladj should send a very clear message to those international cyber-criminals who feel safe behind their computers in foreign lands that they are, in fact, within reach.”
According to court documents, the SpyEye virus is malicious computer code or “malware,” which is designed to automate the theft of confidential personal and financial information, such as online banking credentials, credit card information, usernames, passwords, PINs and other personally identifying information. The SpyEye virus facilitates this theft of information by secretly infecting victims’ computers, enabling cybercriminals to remotely control the computers through command and control (C&C) servers. Once a computer is infected and under the cybercriminals’ control, a victim’s personal and financial information can be surreptitiously collected using techniques such as “web injects,” which allow cybercriminals to alter the display of web pages in the victim’s browser in order to trick them into divulging personal information related to their financial accounts. The financial data is then transmitted to the cybercriminals’ C&C servers, where criminals use it to steal money from the victims’ financial accounts.
According to court documents, from 2009 to 2011, Bendelladj and others allegedly developed, marketed and sold various versions of the SpyEye virus and component parts on the Internet and allowed cybercriminals to customize their purchases to include tailor-made methods of obtaining victims’ personal and financial information. Bendelladj allegedly advertised the SpyEye virus on Internet forums devoted to cybercrime and other criminal activities. In addition, Bendelladj allegedly operated C&C servers, including a server located in the Northern District of Georgia, which controlled computers infected with the SpyEye virus. One of the files on Bendelladj’s C&C server in the Northern District of Georgia allegedly contained information from approximately 253 unique financial institutions.
If convicted, Bendelladj faces a maximum sentence of up to 30 years in prison for conspiracy to commit wire and bank fraud; up to 20 years for each wire fraud count; up to five years for conspiracy to commit computer fraud; up to five or 10 years for each count of computer fraud; and fines of up to $14 million dollars.
The public is reminded that the indictment contains only allegations, and the defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the FBI and is being prosecuted by Special Assistant U.S. Attorney Nicholas Oldham and Assistant U.S. Attorney Scott Ferber of the Northern District of Georgia, and Trial Attorney Carol Sipperly of the Criminal Division’s Computer Crime and Intellectual Property Section. Valuable assistance was provided by the Criminal Division’s Office of International Affairs, which worked with its international counterparts to effect the extradition.
Hampton Man Sentenced for His Participation in Drug ConspiracyRead the Press Release
NEWPORT NEWS, Va. – Sammie Royal, 41, of Hampton, Va., was sentenced Thursday to 262 months in prison, followed by five years supervised release, after pleading guilty to participating in a conspiracy to distribute cocaine.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia and Thomas Townsend, Chief of the Hampton Police Division, made the announcement after sentencing by United States District Judge Mark S. Davis.
According to court records, between 2006 and 2011, Royal was involved in a conspiracy to possess with the intent to distribute and to distribute more than 15 kilograms of cocaine some of which was obtained through a co-conspirator in Texas. Royal was in possession of a large amount of cocaine which was recovered during execution of a search warrant at a residence on Shell Road in Hampton in October, 2007. Court records indicate that Royal was a felony “career offender” with drug, firearm, and abduction convictions dating back to 1994.
This case was investigated by the Hampton Police Division, the Drug Enforcement Administration, and the office of ICE’s Homeland Security Investigations (HSI). Special Assistant United State Attorney Timothy R. Murphy prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Guatemalan Pseudoephedrine Traffickers Plead GuiltyRead the Press Release
ALEXANDRIA, Va. – Edgar Leonel Estrada-Morales, 56, of Guatemala City, Guatemala, pleaded guilty today to conspiring to distribute pseudoephedrine for unlawful importation into the United States and to aid and abet the manufacture of methamphetamine.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Derek S. Maltz, Special Agent In Charge of the Drug Enforcement Administration’s (DEA) Special Operations Division, made the announcement after the plea was accepted by United States District Judge T.S. Ellis, III.
Estrada-Morales, along with his nephew, Victor Estrada-Paredes, were indicted on February 3, 2011, by a federal grand jury on a charge of conspiring to distribute pseudoephedrine (a chemical used in the manufacture of methamphetamine) for unlawful importation into the United States and to aid and abet the manufacture of 500 grams or more of methamphetamine. Estrada-Paredes previously pleaded guilty to the indictment on April 25, 2013, before Judge Ellis. Both Estrada-Morales and Estrada-Paredes face a maximum penalty of life in prison when they are sentenced on August 2, 2013, and July 19, 2013, respectively.
In a statement of facts filed with his plea agreement, Estrada-Morales admitted to selling nearly 5,000 pseudoephedrine pills to an individual whom he believed was involved in a methamphetamine production operation based in Houston, Texas. This individual was, in reality, a DEA cooperating witness. Estrada-Morales also introduced this individual to his nephew, Estrada-Paredes, who was also involved in this pseudoephedrine trafficking operation. According to the indictment, Estrada-Morales sold pseudoephedrine to different groups, including the “La Familia” Mexican drug cartel that sold methamphetamine in the United States.
This case was investigated by the Drug Enforcement Administration. Assistant United States Attorney Michael P. Ben’Ary, of the Office’s National Security and International Crime Unit, is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.usdoj.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on http://pacer.uspci.uscourts.gov.Georgia Man Sentenced for Possession of Child PornographyRead the Press Release
BUFFALO, U.S.--Attorney William J. Hochul, Jr. announced today that Stanley R. Tarnowski, 58 of Fayetteville, GA, who was convicted of possession of child pornography, was sentenced to 60 months in prison and five years of supervised release by U.S. District Court Judge Richard J. Arcara.
Assistant U.S. Attorney Edward H. White, who handled the case, stated that on June 14, 2011, the defendant attempted to enter the United States from Canada and was pulled over for a secondary inspection. Law enforcement officers discovered videos and images of child pornography on Tarnowski's laptop computer. Further investigation determined the videos and images were transmitted over the internet through the use of e-mail. Some of the images depicted children younger than 12 years old and contained depictions of violence.This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The sentencing is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero, Special Agent-in-Charge.Former VP of Business Development for Government Contractor Found Guilty of 14 Counts of Unauthorized Access to A Protected ComputerRead the Press Release
ALEXANDRIA, Va. – Robert Edwin Steele, 38, of Alexandria, Virginia, was convicted today by a federal jury of 14 counts of unauthorized access to a protected computer.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the Federal Bureau of Investigation’s Washington Field Office, made the announcement after the verdict was accepted by United States District Judge Gerald Bruce Lee.
Steele was specifically found guilty of two misdemeanor and twelve felony violations of Title 18, United States Code, Section 1030(a)(2). When he is sentenced on July 19, 2013, Steele faces a maximum term of imprisonment of one year on each of the two misdemeanor counts and five years on each of the felonies.
Steele was indicted on December 13, 2012, on fourteen counts of unauthorized access to a protected computer. According to court records and evidence at trial, Steele worked at multiple companies involved in government contracting. On December 15, 2010, Steele resigned from one government contracting firm, described in court documents as “Company A,” due to a dispute about his compensation with Company A and “Company B,” another government contracting firm that was in the process of acquiring Company A.
When Steele left Company A on December 15, 2010, he provided verbal and written assurances to officials of Company A that he would not access its systems after his departure, and even urged them to shut down his existing accounts. That same day, however, Steele began logging into Company A’s email systems using a secret administrative account which he learned about during his work for Company A. Steele immediately began downloading hundreds of proprietary documents using this administrative account.
Shortly after resigning, Steele joined another government contractor, “Company C,” that directly competed with Companies A and B for government contracts. At Company C, Steele worked as “Director of Law Enforcement” and prepared bids for government contracts on law enforcement projects. In that position, Steele undercut Company A’s bid on a government contract by approximately $100,000, while downloading Company A’s documents on the same contract. Although his attempt to win the bid failed, Steele continued to methodically sift through thousands of valuable documents stored on computers for Company A.
From December 15, 2010 until September 2, 2011, when agents for the Federal Bureau of Investigation seized equipment used by Steele to access the account, Company A’s system had been accessed by their former employee more than 79,000 times.
This case was investigated by the Federal Bureau of Investigation’s Washington Field Office. The Office of the Inspector General for the General Services Administration provided additional assistance.
Assistant United States Attorney Alexander T.H. Nguyen and Special Assistant United States Attorney Jonathan Keim are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former St. Joseph Jail Employee Indicted for Illegally Using Food Stamp Benefits, Distributing HydrocodoneRead the Press Release
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former civilian employee of the St. Joseph, Mo., Police Department has been indicted by a federal grand jury for distributing hydrocodone and for illegally using Electronic Benefit Transfer (EBT) cards.
Kathleen “Kat” P. Blakely-Polk, 49, of St. Joseph, was charged in an eight-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Wednesday, May 1, 2013. That indictment was unsealed and made public upon Blakely-Polk’s arrest and initial court appearance.
Blakely-Polk was employed as a booking desk officer at the St. Joseph Police Department Law Enforcement Center during the time of the alleged violations. The federal indictment charges her with five counts of illegally using EBT cards and three counts of distributing hydrocodone.
The indictment alleges that Blakely-Polk illegally used an EBT card on May 2 and May 3, 2011.
The indictment alleges that Blakely-Polk distributed hydrocodone on June 30, 2011 and that she illegally used an EBT card on July 1, 2011.
The indictment alleges that Blakely-Polk distributed hydrocodone on July 21, 2011 and that she illegally used an EBT card on July 23, 2011.
The indictment alleges that Blakely-Polk distributed hydrocodone on Aug. 4, 2011 and that she illegally used an EBT card on Aug. 5, 2011.
The indictment alleges that Blakely-Polk used federal benefits – specifically, benefits under the Supplemental Nutrition and Assistance Program (SNAP), formerly known as the food stamp program – in an unauthorized manner. In 1998, the USDA (through the Missouri Division of Social Services) converted from a traditional paper food stamp coupon system to the EBT card system. Instead of being issued food stamp coupons, SNAP recipients were issued EBT cards that could be used at participating retailers. EBT cards, which are similar to credit and debit cards, are linked to a recipient’s benefit account, and credited with the recipient’s allocated benefits on a monthly basis. The recipient can then redeem the benefits at participating authorized retailers. The redemption of SNAP benefits is done in a fashion similar to a credit or debit card transaction.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Jalilah Otto. It was investigated by the Buchanan County, Mo., Sheriff’s Department, the U.S. Department of Agriculture, the St. Joseph, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Former Consultant for Willbros International <br /> Sentenced in Connection with Foreign Bribery SchemeRead the Press Release
A former consultant for Willbros International Inc. (Willbros International), a subsidiary of Houston-based Willbros Group Inc. (Willbros), was sentenced today for his role in a conspiracy to pay more than $6 million in bribes to government officials of the Federal Republic of Nigeria and officials from a Nigerian political party, Acting Assistant Attorney General Mythili Raman of the Criminal Division and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office announced today.
Paul G. Novak, 46, was sentenced today to serve 15 months in prison by U.S. District Judge Simeon T. Lake III of the Southern District of Texas. The court took into consideration Novak’s cooperation, and the sentence was consistent with the government’s recommendation. In addition to the prison sentence, Novak was ordered to pay a $1 million fine and to serve two years of supervised release following his release from prison. In sentencing Novak, the court took into consideration the assistance Novak provided the government in ongoing investigations.
Novak pleaded guilty to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and one substantive count of violating the FCPA. Novak admitted that from approximately late-2003 to March 2005, he conspired with others to make a series of corrupt payments totaling more than $6 million to various Nigerian government officials and officials from a Nigerian political party to assist Willbros and its joint venture partner, a construction company based in Mannheim, Germany, in obtaining and retaining the Eastern Gas Gathering System (EGGS) Project, which was valued at approximately $387 million. The EGGS project was a natural gas pipeline system in the Niger Delta designed to relieve existing pipeline capacity constraints.
According to court records, Novak and his alleged co-conspirators Kenneth Tillery, Jason Steph, Jim Bob Brown, three employees from Willbros’s joint venture partner and others agreed to make the corrupt payments to, among others, government officials from the Nigerian National Petroleum Corporation, the National Petroleum Investment Management Services, a senior official in the executive branch of the federal government of Nigeria, and members of a Nigerian political party. Court documents state the bribes were paid to assist in obtaining and retaining the EGGS contract and additional optional scopes of work.
According to information contained in plea documents, to secure the funds for those corrupt payments, Novak and his alleged conspirators caused Willbros West Africa Inc., a subsidiary of Willbros International, to enter into so-called “consultancy agreements” with two consulting companies Novak represented in exchange for purportedly legitimate consultancy services. In reality, those consulting companies were used to facilitate the payment of bribes.
In addition to Novak, to date, two Willbros employees have pleaded guilty for their roles in the EGGS bribery scheme, and Willbros has entered into a deferred prosecution agreement with the government:
- On May 14, 2008, Willbros Group Inc. and Willbros International entered into a deferred prosecution agreement with the government and agreed to pay a $22 million penalty, in connection with the company’s payment of bribes to government officials in Nigeria and Ecuador. On March 30, 2012, the government moved to dismiss the charges following Willbros’s satisfaction of its obligations under the deferred prosecution agreement, and on April 2, 2012, the Court granted the United States’ motion.
- On Sept. 14, 2006, Jim Bob Brown, a former Willbros executive, pleaded guilty to one count of conspiracy to violate the FCPA, in connection with his role in making corrupt payments to Nigerian government officials to obtain and retain the EGGS contract and in connection with his role in making corrupt payments in Ecuador. After a reduction for cooperation, Brown was sentenced on Jan. 28, 2010, to 12 months and one day in prison, two years of supervised release and a $17,500 fine.
- On Nov. 5, 2007, Jason Steph, also a former Willbros executive, pleaded guilty to one count of conspiracy to violate the FCPA, in connection with his role in making corrupt payments to Nigerian government officials to obtain and retain the EGGS contract. After a reduction for cooperation, Steph was sentenced on Jan. 28, 2010, to 15 months in prison, two years of supervised release and a $2,000 fine.
Kenneth Tillery was charged, along with Novak, for his alleged role in the bribery scheme in an indictment unsealed on Dec. 19, 2008. According to the indictment, Tillery was a Willbros International employee and executive from the 1980s through January 2005. From 2002 until January 2005, Tillery served as executive vice president and, later, as president of Willbros International. Tillery remains a fugitive. The charges against Tillery are merely accusations, and he is presumed innocent unless and until proven guilty.
The case is being investigated by FBI agents who are part of the Washington Field Office’s dedicated FCPA squad. Significant assistance was provided by the Criminal Division’s Office of International Affairs. This case is being prosecuted by Senior Trial Attorney Laura N. Perkins of the Criminal Division’s Fraud Section.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Agriprocessors' Manager Hosam Amara to Appear in Court Following Extradition from IsraelRead the Press Release
Former Agriprocessors’ manager Hosam Amara is scheduled to appear today in federal court in Cedar Rapids following his extradition from Israel. According to Israeli authorities, Amara was arrested in Israel on March 31, 2011.Hosam Amara, age 48, was first indicted on November 20, 2008. A July 16, 2009, superseding indictment charged Amara with one count of conspiracy to harbor undocumented aliens for profit, twenty-four counts of harboring and aiding abetting the harboring of undocumented aliens for profit, one count of conspiracy to commit document fraud, and one count of aiding and abetting document fraud.
If convicted, Amara faces up to ten years’ imprisonment on each of the conspiracy to harbor undocumented aliens for profit charge and the harboring undocumented aliens for profit charges, up to five years’ imprisonment on the conspiracy to commit document fraud charge, and up to ten years’ imprisonment on the document fraud charge. In addition, if convicted, Amara faces fines, special assessments, and supervised release following any imprisonment.
Amara’s first appearance in federal court in Cedar Rapids for an initial appearance and arraignment is set for today at 1:30 p.m.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorneys Peter Deegan, C.J. Williams, and Matthew Cole. The investigation has been led by Homeland Security Investigations with assistance from the Federal Bureau of Investigation. Prior assistance was provided by the United States Marshals Service; United States Postal Inspections Service; Iowa Department of Public Safety; Iowa Department of Transportation; Federal Protective Service; Internal Revenue Service – Criminal Investigations; United States Department of Labor; Public Health Service; United States Department of Agriculture; United States Environmental Protection Agency; Iowa Department of Natural Resources; Drug Enforcement Administration; Waterloo Police Department; and Postville Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 08-1324 LRR.