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13 June 2013
Illegal alien convicted of unlawful reentry identity theft and firearms possessionRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a citizen of the Dominican Republic was convicted by a federal jury of 12 criminal offenses.
Javier Martinez, 48, was convicted of one count of reentry after deportation, five counts of making false claims of United States citizenship, five counts of aggravated identity theft, and one count of possession of a firearm by an illegal alien.
According to Assistant U.S. Attorney Thomas C. Bradley, who prosecuted the case, Martinez was deported from Miami to the Dominican Republic in 1992, but later unlawfully returned to the United States. Evidence at trial matched the defendant’s fingerprints to those of the person removed in 1992. Martinez was also convicted of illegally using the name Victor Rodriguez Flores, a resident of Puerto Rico, to apply for an Alaska identification card and to obtain employment at Anchorage hotels including: the Sheraton; the Embassy Suites; the Quality Inn; and the Millennium Hotel. Evidence presented at trial showed that Martinez falsely claimed to be a U.S. citizen on application forms filed with the Alaska DMV and each of the hotels where he worked.
Martinez was also convicted of possession of a firearm, a Ruger .45 caliber semiautomatic pistol. Illegal aliens are prohibited from possessing firearms under federal law, as are convicted felons, drug addicts, and fugitives from justice. Witnesses testified at trial that Martinez brought the pistol to the Millennium Hotel on October 29, 2011, after having been fired from his job, and used it to shoot Kerry Fadely his former supervisor. The firearm was recovered at the scene along with a letter from Martinez explaining the reasons he was unhappy working at the hotel. The letter directed the Millennium Hotel to send his final paycheck to the Anchorage jail. Martinez faces first degree murder charges in state court in connection with the shooting.
The defendant testified, claiming that he was never actually deported from the United States in 1992, because after being placed on the flight by immigration officers, he went out the back of the plane and into the terminal. Two special agents from Homeland Security Investigations testified at trial that Martinez had admitted to them that he was deported in 1992. They also testified that when they asked Martinez about the firearm he left at the Millennium Hotel, he stated that it was easier to buy a gun in Anchorage than to buy a pack of cigarettes or a six pack of beer.
Martinez faces up to 20 years of imprisonment on the reentry charge because he was deported following a felony drug trafficking conviction. He faces up to ten years on the firearms charge, five years on each of the false claim of citizenship charges, and a mandatory consecutive two years prison for the identity theft charges. Chief U.S. District Judge Ralph R. Beistline set the sentencing for August 27, 2013.
The case was investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and by officers of the Anchorage Police Department.Houston Man Gets 101 Months for Trafficking Firearms to ColombiaRead the Press Release
HOUSTON – Patrick Regan, 41, of Houston, has been ordered to federal prison for smuggling more than 300 firearms to Colombia, United States Attorney Kenneth Magidson announced today.
Regan pleaded guilty Jan. 24, 2012, to conspiracy to make and making a false statement to a federal firearms licensee, dealing in firearms without a license, possession of firearms with obliterated serial numbers and possession of an unregistered firearm.
At the hearing today, additional evidence was presented including the fact that the guns were being supplied to organizations in Colombia that take over and control areas of the country by killing law abiding citizens and legitimate police officers. After hearing arguments from both the government and the defense, U.S. District Judge Keith P. Ellison sentenced Regan to a total of 60 months on each of the first four charges to run concurrently. He was further sentenced to 41 months for the possession of an unregistered firearm which will be served consecutively for a total sentence of 101 months in federal prison. Following completion of his sentence, Regan will have to also serve two years of supervised release during which he cannot commit any further crimes and cannot possess a firearm.
In handing down the sentence, Judge Ellison noted this was one of the most serious crimes encountered by the district courts and that courts will deal with this type of conduct severely. He further stated he is concerned about the harm done to people as a result of this activity.
An investigation into the illegal export by Regan of firearms to Colombia was initiated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in October 2010. During the course of the investigation, ATF and Homeland Security Investigations (HSI), working jointly, learned Regan had acquired an unusually large number of firearms and related equipment beginning in or about October 2009 and had been receiving substantial sums of money via wire transfer from banks in Colombia. The results of the joint investigative effort led to the accusations that Regan made false statements to federally licensed firearms dealers to obtain firearms, obliterated the serial numbers on the firearms and unlawfully exported the firearms to Colombia.
Agents intercepted 27 firearms in Houston bound for Colombia. Regan admitted to shipping 100s of firearms to Colombia and, according to evidence at the hearing today, more than $100 thousand was wired to Regan from Colombia during the course of the conspiracy.
On Dec. 8, 2010, agents witnessed Regan ship numerous boxes addressed to recipients in Colombia. An examination of those boxes and their shipping labels resulted in a determination that the name of the addressee was fictitious, the shipping address was an abandoned residence in Colombia, the shipper’s name and address were fictitious and the description of the content of the packages identified as machine castings or pressure washers was also false. The boxes actually contained 16 firearms, including eight Fabrique-Nationale Herstal, model Five-seven, 5.7 x 28mm caliber pistols and eight Double Star, model STAR-15, 5.56mm caliber complete lower receivers. The lower receivers are components of AR-15 style semi-automatic rifles which are similar in appearance to the U.S. military’s M-4 rifle. Each firearm had its serial number obliterated.
Agents intercepted two subsequent firearms shipments made by Regan to Colombian addresses. A shipment intercepted on Dec. 15, 2010, included eight firearms. The following day, three Rock River Arms, model LAR-15, 5.56mm caliber lower receivers, were also recovered.
ATF and HSI agents executed a number of search warrants including one at Regan’s Houston area residence which resulted in the discovery and seizure of 55 additional lower and upper receivers for AR-15 style semi-automatic rifles, an unregistered fully assembled short-barrel AR-15 rifle and two pieces of metal working machinery.
In close collaboration with ATF and Department of Homeland Security liaison personnel stationed at the United States Embassy in Bogota, investigating agents passed on valuable leads to the Colombian National Police who conducted several searches in Colombia timed to coincide with the arrests in the United States. Colombian National Police have arrested several people and dismantled a workshop where firearms were being assembled from the lower receivers Regan allegedly supplied and other essential components.
Regan will remain in custody where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The ATF and HSI conducted this investigation with the assistance of the United States Embassy in Bogota, the Colombian National Police and the Houston Police Department. Assistant U.S. Attorney (AUSA) Megan J. Paulson and former AUSA Mark White prosecuted this case.
Hanover Pennsylvania Heroin Dealer Sentenced to 20 Years in Prison in Connection with Two Heroin Overdose-Related DeathsRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that Zachary Aaron Staley, age 30, of Hanover, Pennsylvania, was sentenced today by U.S. District Court Judge Sylvia H. Rambo to 20 years in prison for distributing heroin that resulted in two deaths. Judge Rambo further ordered that Staley pay $19,024.75 in restitution.
According to United States Attorney Peter J. Smith, in November 2007 and again in September 2008, Staley sold heroin to two individuals in the Hanover, Pennsylvania area who died of overdoses after using the heroin Staley sold them.
Staley was indicted in February 2012 and pleaded guilty in January 2013.
The case was investigated by the Drug Enforcement Administration and the Adams County District Attorney’s Office. Prosecution was handled by Assistant United States Attorney Joseph J. Terz.
Hanover Man Pleads Guilty to Making False Statements to the EPARead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 46-year-old man from Hanover, Minnesota, pleaded guilty to making false statements in matters within the jurisdiction of the United States Environmental Protection Agency (“EPA”) regarding the levels of toxic pollutants in the industrial wastewater discharged by Anodize, Inc., the Buffalo-based machine shop where he worked. Brent Roland Feickert specifically pleaded guilty to one count of making false statements. Feickert, who was charged on May 13, 2013, entered his plea before U.S. District Court Judge David S. Doty.
Anodize’s operations include metal plating, a process which yields industrial wastewater containing heavy metals and toxic pollutants. Anodize discharges the industrial wastewater into the sanitary sewer system pursuant to limits set forth in its discharge permit. Under the conditions of its permit, the concentration of toxic pollutants, including nickel and zinc, must be below specified limits set by the EPA. The Minnesota Pollution Control Agency (“MPCA”) monitors the permit and requires companies to submit quarterly reports.
At Anodize, Feickert was responsible for receiving and reviewing the results of tests performed on the company’s industrial wastewater and then entering those results on the quarterly discharge reports submitted to the MPCA. In his plea agreement, Feickert admitted that on five occasions between 2009 and 2011, he submitted false quarterly discharge reports to the MPCA. In each report, Feickert falsely represented that the levels of nickel or zinc in Anodize’s industrial wastewater discharge were within permit limits. In each instance, testing had revealed and Feickert knew that the levels of nickel or zinc were in excess of permit limits.
Following today’s plea, Michelle Beeman, Deputy Commissioner of the MPCA, said, “Self-reporting is a cornerstone of the environmental regulatory process. Water protection depends on truthful self-reporting and the MPCA considers any action that jeopardizes the integrity of the regulatory process to be a serious violation and a potential threat to the environment.”
“Without accurate and honest information, governments cannot fully protect the public’s health and welfare,” said Randall Ashe, Special Agent in Charge of the EPA’s criminal enforcement program in Minnesota. “If toxins contained in wastewater are not clearly identified, they cannot be properly treated. When that happens, America’s waterways end up as dumping grounds for waste materials. Today’s guilty plea should serve as a warning to anyone who puts public health at risk by not carrying out his or her responsibilities honestly.”
For his crime, Feickert faces a potential maximum penalty of five years in federal prison. Judge Doty will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Minneapolis Field Office of the EPA’s Criminal Investigative Division and the MPCA. It is being prosecuted by Assistant U.S. Attorney David M. Genrich.Fort Wayne, Indiana Man Sentenced to More Than 29 Years in Prison for Robbery of Springboro BankRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI –Anthony Marquette Phillips, 44, of Fort Wayne, Indiana was sentenced to 235 months in prison for his role in the armed robbery of a bank in Springboro on April 27, 2012 plus an additional 120 months for using and discharging a firearm during the course of the robbery.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigaiton, Cincinnati (FBI), and Springboro Police Chief Jeffrey Kruithoff announced the sentence handed down June 12 by U.S. District Judge Michael Barrett.
According to court documents, Phillips and Anton Jevon Alexander, 36, of Indianapolis, Indiana approached the bank manager as he was entering the building’s rear door at 8:30 in the morning and pushed him inside. Springboro police officers received a 911 call and arrived at the bank around 8:40. The would-be robbers attempted to flee when they heard police arriving. Phillips fired a shot at the manager. The manager escaped safely. The men remained in the bank until approximately 1:30 Friday afternoon when they emerged and were taken into custody.
Each defendant pleaded guilty on October 12, 2012. Alexander was sentenced on May 7, 2013 to 15 years in prison.
U.S. Attorney Stewart commended the prompt response and investigation by Springboro police and FBI agents, as well as District Criminal Chief Kenneth L. Parker and Special Assistant U.S. Attorney Greg Stephens with Butler County Prosecutor Mike Gmoser’s Office, who represented the United States in the case. Stewart also commended the cooperative response and investigation by the Warren County Sheriff’s Office -- Tactical Response Unit, Hostage Negotiation Team, the police departments in Miami Township, Franklin, Lebanon, Dayton and Clearcreek Township, the Clearcreek Township Fire Department, and the Ohio State Highway Patrol.
Former Youth Camp Worker Sentenced to 20 Years for Sexual Exploitation of ChildrenRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former YMCA camp employee has been sentenced in federal court for sexually exploiting children.
Matthew O’Dell, 29, of Springfield, Mo., was sentenced by U.S. District Judge Brian C. Wimes on Wednesday, June 12, 2013 to 20 years in federal prison without parole. O’Dell, who was formerly employed at YMCA=s Camp Wakonda in Lawrence County, Mo., will spend the rest of his life on supervised release following incarceration.
O’Dell pleaded guilty on May 23, 2012. He admitted that he made a video recording of a 13-year-old minor, identified as “W.L.,” between Jan. 1, 2005, and May 30, 2006. The video, which was recorded at O’Dell’s residence, depicts W.L. engaged in sexually explicit conduct. On Aug. 4, 2009, Springfield police officers executed a search warrant upon a storage facility in which O’Dell had placed his belongings. The officers located a digital video tape containing the video recording of W.L.
Additionally, the court heard testimony concerning multiple individuals allegedly victimized by O’Dell prior to imposing the sentence upon O’Dell.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Springfield, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Former Vice President of Alberici Constructors, Inc. Indicted in Kickback SchemeRead the Press Release
St. Louis, MO - A former vice-president of St. Louis-based Alberici Constructors, Inc., was indicted by a federal grand jury in St. Louis for orchestrating a kickback scheme in which Alberici is alleged to have lost at least $4.8 million. CLONE JEFFERSON OLIVER, Apollo Beach FL, was indicted on seven counts of mail fraud, wire fraud and money laundering in an indictment returned today.
Also charged was KENNETH MARC SIMMONS, La Grange GA, who ran a business which supplied materials to an Alberici construction project in Arlington, Virginia. Oliver and Simmons are expected to surrender to authorities in St. Louis next week.
According to the indictment, Oliver was the project manager for Alberici on a project to build a water treatment plant in Arlington. Work on the project began in September 2006 and the cost of the project was $238,000,000. Oliver is alleged to have collaborated with Simmons on submitting inflated invoices and false change orders for materials provided to the project by Simmons' business, Industrial and Municipal Supply (IMS). The indictment charges that when IMS received payment on the bad invoices, Simmons kept a share and then forwarded money in the nature of kickbacks to Oliver. Simmons made many of the payments to a corporation formed by Oliver called Advanced Construction Solutions, which had the same initials (ACS) as another supplier to the Arlington project, American Construction Services. The indictment refers to Oliver's company as the "fake ACS" while the latter company is referred to as the “real ACS.”It is alleged that Oliver and Simmons used the real ACS to draw even more money out of Alberici. The owner of real ACS was directed by Oliver to inflate his company's invoices and, upon payment by Alberici, to transfer the inflated payment to IMS which, in turn, would send money on to Oliver. It is estimated that Alberici lost over $1.7 million by Oliver using the real ACS entity that way.
"No matter how sophisticated a fraud scheme, it will eventually be exposed," said Dean C. Bryant, Special Agent in Charge of the FB- St. Louis Division. "The FBI aggressively seizes items acquired with stolen money and returns the value of those items back to the victims."
"IRS Criminal Investigation is committed to unraveling complex financial transactions and money laundering schemes where individuals attempt to conceal the true source of their money," said Sybil Smith, Special Agent in Charge of the St. Louis Field Office.
Both Oliver and Simmons are charged in five counts of mail and wire fraud with each count carrying a maximum prison term of 20 years and/or fines to $250,000. Oliver is charged in two additional counts of money laundering with each count carrying a maximum prison term of 10 years and/or a fine up to $250,000. If convicted, each defendant would be subject to an order of restitution in favor of Alberici.
The government has already filed civil forfeiture actions against two properties which are alleged to have been purchased or financed with funds from the scheme. One is a home in Apollo Beach, FL, which is alleged to have been purchased for $1.1 million in 2008. The other is a home in Zephyrhills (aka Wesley Chapel), FL, on which first and second mortgages were alleged to have been paid off with stolen funds. The following assets were also seized pursuant to court orders tracing the proceeds of the scheme: two boats and a boat trailer; two Sea Doo water crafts; a Mercedes vehicle; a diamond ring; proceeds from the sale of two Harley motorcycles and a boat dock; and proceeds from the refinancing of a property on Lake Martin in Alabama. Any proceeds from those court actions will go to Alberici as the victim of the offenses charged.
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation. Assistant United States Attorneys James E. Crowe, Jr. and Anthony Franks are handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Former Tallahassee Memorial Hospital Employees Sentenced in Tax Refund SchemeRead the Press Release
TALLAHASSEE B Spencer Larry Parson, 25, and Amber Sasha-Rashawn Simmons, 23, both of Tampa, were sentenced to 57 months in federal prison following their guilty pleas to conspiring to defraud the United States in the filing of false tax returns. Parson and Simmons also pled guilty to two counts of wire fraud and two counts of aggravated identity theft in connection with the fraudulent tax refund scheme. The sentences were announced today by Pamela C. Marsh, U.S. Attorney for the Northern District of Florida.
At their plea hearing, the government’s factual basis stated that between 2011 and 2012, Parson and Simmons prepared and filed fraudulent returns seeking more than $818,000 in tax refunds. Parson and Simmons created the fraudulent returns using taxpayer identification numbers and other personal identifying information stolen from both living and deceased individuals, who were patients of Tallahassee Memorial Hospital. Parson was a former employee of the hospital
In addition to the 57 months in prison, the judge also imposed a special monetary assessment of $700, three years of supervised release and ordered Parson and Simmons to pay $283,591.33 in restitution to the Internal Revenue Service.
The Internal Revenue Service, United States Postal Inspection Service, and Leon County Sheriff’s Office investigated this case, which was prosecuted by Assistant U.S. Attorney Jason Coody.
Former President of Galiano Career Academy Agrees to Plead Guilty to Theft of Federal Funds, Obstruction, and Aggravated Identity TheftRead the Press Release
Orlando, FL - United States Attorney Robert E. O’Neill announces that Michael Gagliano (49, Sanford) has agreed to plead guilty to theft of government property, obstruction of a federal audit, and aggravated identity theft. He faces a maximum sentence of 10 years in federal prison for the theft of government property charge, up to five years in prison for the obstruction charge, and a mandatory minimum term of 2 years in prison, which must be served consecutive to his sentence for any of the other underlying offenses. The information also notifies Galiano that the United States intends to seek a money judgment in the amount of $2,105,761.00, which are alleged to be traceable to proceeds of the offenses. Gagliano was charged by information on June 12, 2013.
According to court documents, Galiano Career Academy, Inc. (GCA), located in Altamonte Springs, was a for-profit trade school, offering career programs such as Medical Assistant, Medical Billing and Coding, Pharmacy Technician, Travel Counselor, and Travel and Tourism Specialist. Gagliano was GCA’s President and School Director. GCA was approved by the United States Department of Education (DOE) to administer Federal Student Assistance (FSA) programs, including the Federal Family Education Loan Program (FFEL) and the Federal Pell Grant program, which offered assistance to eligible students participating in post-secondary education at eligible institutions. GCA also received financial assistance for job training from Workforce Central Florida (WCF), a permanent placement agency, helping employers connect with job seekers each year in the central Florida area.
Gagliano used Columbus Academy, a high school “diploma mill” owned and operated by his wife, to make students eligible for FSA when they otherwise would not have been qualified. The GCA students who “graduated” from Columbus Academy were not eligible to receive the federal funds since these students did not receive a real high school education. From July 2007 through July 2010, 176 ineligible students enrolled at GCA through Columbus Academy received $1,221,878.00 in Direct Student Loan funds and $715,708.00 in Pell grant funds. Additionally, GCA received federal funds from the United States Department of Labor and WCF for ineligible students who attended GCA. As a result, GCA unlawfully received $168,175.00 of funds for unqualified students.
On July 13, 2009, the DOE Office of Federal Student Aid conducted a program review of GCA. The review was conducted to assess GCA’s administration of the financial aid programs in which it participated. During the program review Gagliano tampered with student records. The investigation also revealed that GCA/Gagliano electronically submitted the name and social security number of a student to the DOE in order to obtain loan funds on her behalf, well after she stopped attending GCA. Gagliano falsified the student’s attendance records to indicate that she was in attendance at GCA.
An information is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by United States Department of Education, Office of Inspector General and the United States Department of Labor, Office of Labor Racketeering and Fraud Investigation. It will be prosecuted by Assistant United States Attorney David Haas.
Former Pennsylvania Charter School Operator Pleads Guilty to Federal Income Tax FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dennis Bloom, age 58, of Mount Pocono, Pennsylvania, pleaded guilty today to tax fraud before U.S. District Court Judge Robert D. Mariani in Scranton.
According to United States Attorney Peter J. Smith, Bloom was indicted in March 2013 following his failure to report $180,000 in income and evaded approximately $57,813 in taxes.
Bloom is the former chief executive officer of the Pocono Mountain Charter School and Pastor of Shawnee Tabernacle Church, both in Mount Pocono.
A sentencing date was scheduled for the week of September 16, 2013.
The case was investigated by the Internal Revenue Service-Criminal Investigations and the U.S. Department of Education, Office of Inspector General. Prosecution is assigned to Assistant United States Attorney Lorna N. Graham.
Former Loan Officer at Pampa Teachers Federal Credit Union Sentenced to 36 Months in Federal Prison for Stealing from Credit UnionRead the Press Release
Erin Dawn Trevathan Also Ordered to Pay More Than $400,000 in Restitution
AMARILLO, Texas — Erin Dawn Trevathan, 26, of Amarillo, Texas, was sentenced this afternoon by U.S. District Judge Mary Lou Robinson to 36 months in federal prison and ordered to pay $442,297 in restitution following her guilty plea April 2013 to one count of fraud in connection with federal credit union entries. She was remanded to custody. Today’s announcement was made U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Trevathan was employed by the Pampa Teachers Federal Credit Union as a loan officer from July 2008 until early December 2010, and during that time, she was the sole loan officer at the credit union. Her job consisted of processing personal loans and auto loans.
During an audit, irregularities were noticed. When confronted, Trevathan admitted that she had been making false entries and stealing cash from the credit union’s main account for her personal use. As a result of her false entries, loan manipulations and unauthorized activity, the Pampa Teachers Federal Credit Union suffered a loss of approximately $422,973.
The case was investigated by the FBI, with assistance from the National Credit Union Administration. Assistant U.S. Attorney Christy Drake was in charge of the prosecution.
Former FBI Fugitives Guilty of Multiple Charges Including Conspiracy to Distribute A Controlled Substance, Operating an Unlicensed Money Transmitting Business, and Lying to Obtain Federal AidRead the Press Release
LOUISVILLE, Ky. – A native of Somalia and his son, a native of Kenya, who were fugitives from the Federal Bureau of Investigation (FBI) have pleaded guilty today and last week, in United States District Court, before Judge John G. Heyburn II, to multiple charges including conspiracy to distribute a controlled substance, operating an unlicensed money transmitting business, and lying to obtain federal aid, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Abdalla Hajisufi, age 43, a naturalized citizen of the United States, having been born in Somalia, and living in Louisville, Kentucky, and his eldest son Mohamed Hajisufi, age 20, a naturalized citizen of the United States, having been born in Kenya, and living in Louisville, failed to appear in federal court for arraignment in June 2012, and were fugitives from the FBI until their arrest on January 28, 2013, by the FBI, as they attempted to reenter the United States on a flight from Europe at the Cincinnati/Northern Kentucky International Airport.
In court today and last week, both defendants pleaded guilty to conspiring to distribute Oxycodone and Hydrocodone between November 2011 and March 2012, at various times, to customers at their business, the Hana Store, formerly located on Preston Highway in Louisville. Further, Abdalla Hajisufi pleaded guilty to managing and owning an unlicensed money transmitting business operating out of the Hana Store. According to the plea agreement Hajisufi cashed payroll checks from employees of a temporary employment agency, and would deduct a small fee for the transaction, without complying with the licensing and registration requirements of Kentucky state laws. According to an FBI affidavit filed in support of a civil complaint, Hajisufi cashed nearly 107,000 payroll checks totaling over $6.6 million from July 2006 through December 2010 at the Hana Store.
Further, Abdalla Hajisufi pleaded guilty today, to stealing $41,640 in food stamp benefits from the SNAP program, which administers food stamp benefits, from January 1, 2006 through May 31, 2011, and to stealing $20,196 in Section 8 housing benefits by misrepresenting his income on benefit application forms. Hajisufi agreed to pay $119,876.87 in restitution to the Kentucky food stamp program ($41,640), the local, Jefferson County, Kentucky, Section 8 program ($20,196) and the Kentucky Medicaid program ($58,040.87), stolen in the same manner as the Section 8 and food stamp benefits but uncharged as it was not discovered until after this indictment.
Hajisufi further agreed to the forfeiture of $25,008 in United States currency which was seized at his place of business, The Hana Store, during execution of the FBI search warrant on March 13, 2012.
According to the plea agreements, Mohamed Hajisufi faces a minimum term of 20 years in prison, a fine of $1,000,000 and a three year term of supervised release. Abdalla Hajisufi faces a combined maximum term of 60 years in prison, a fine of $2,500,000 and a three year term of supervised release. Mohamed Hajisufi is scheduled for sentencing on September 3, 2013, at 3pm, in Louisville.
This case is being prosecuted by Assistant United States Attorney Jason Snyder and is being investigated by the FBI, Internal Revenue Service, United States Department of Housing and Urban Development (HUD), and United States Department of Agriculture (USDA).
Former East Bay Woman Pleads Guilty to Conspiring to File False ClaimsRead the Press Release
OAKLAND, Calif. – Angela Pellette pleaded guilty yesterday to conspiring to file false claims with the IRS, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation Special Agent in Charge José M. Martinez.
According to her plea agreement, beginning in August 2008, Pellette helped obtain tax refunds from the IRS based on false tax returns that she filed. In order to carry out the scheme, Pellette asked others to provide their personal identifying information for use in false returns. Pellette knew that the returns she filed were false because, in many instances, the person whose name appeared on the tax returns did not supply the information reported on the tax return.
Pellette used others individuals’ bank accounts, in addition to her own, to receive the fraudulent refunds. When the fraudulent tax refunds were issued, Pellette and the account holder split the proceeds if Pellette’s personal account was not used.
Pellette, 54, was indicted on July 12, 2012. Her sentencing hearing is scheduled for September 18, 2013, in front of The Honorable Charles R. Breyer, U.S. District Court Judge. The maximum statutory penalty for conspiracy to file false claims, in violation of Title 18 U.S.C. § 286 is 10 years in prison and a $250,000 fine. However, any sentence will 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.
Michael G. Pitman and Thomas Newman are the Assistant U.S. Attorneys who are prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Former Chief of St. Clair Fire Protection District and Ladue Fire Department Sentenced on Federal Fraud and Tax ChargesRead the Press Release
St. Louis, MO -Eric Hinson was sentenced to 35 months in prison on mail fraud and multiple tax evasion charges involving his misuse of approximately $593,236 of St. Clair Fire Protection District funds between January 2006 and September 2011. As a result of the federal investigation, Hinson resigned his positions as Chief at both the St. Clair Fire Protection District and the Ladue Fire Department. In addition to the prison sentence, he was ordered to pay restitution of $615,298.
"In rural Missouri volunteer fire personnel are the backbone of public safety when it comes to our homes and property," said U.S. Attorney Richard Callahan. "Aside from our thanks, they deserve much better than this from their leaders."
The St. Clair Fire Protection District (District) provides fire protection service for Franklin County, Missouri, and has four fire houses, 18 full-time fire fighters and between 25-50 volunteer fire fighters. The District is primarily funded by public funds, through real estate tax, personal property tax and sales tax. Eric Hinson began with the District as a volunteer firefighter during 1985, was elected to the Board of Directors for the District in 1997 and as Treasurer of the District in 1999. During January 2011, he became the Fire Chief for the District while continuing to perform his duties as Treasurer, until his resignation from the District on September 28, 2011. As Treasurer, Hinson was responsible for preparing the annual budgets, facilitating the annual financial statement audit, gaining approval from the District's Board of Directors for expenditures, reconciling bank statements and performing other accounting related activities, in the QuickBooks general ledger system, other than for payroll. He also had the ability to access the QuickBooks system remotely from outside the District offices.
According to court documents, Hinson used the District credit cards to pay for family vacations to Hawaii and Florida, to pay for personal items such as sporting goods and other items, limousine rentals, tickets to Six Flags, Big Surf Water Park and other entertainment expenses, restaurant meals, gasoline and hotel rooms, as well as to obtain significant cash advances. Without the knowledge and authority of the District, Hinson directed that these personal credit card charges be paid with District funds. Further, on several occasions, Hinson wrote District checks to pay for his own personal expenses, including checks to Ford Credit for a pickup truck, to Macy's for furniture, to John Deere Credit for tractor parts and checks to Bank of America and Fifth Third Bank for other personal expenses. In order to conceal his scheme, Hinson accessed the District's QuickBooks to alter reported general ledger activity by backdating certain of his fraudulent transactions and by changing the payee in order to manipulate the District's accounting records so as to hide the existence of his fraudulent transactions. Through his fraudulent conduct, Hinson obtained approximately $593,236 from the St. Clair Fire Protection District.
Additionally, Hinson filed false tax returns for the years 2006 through 2010, leaving total additional taxes due of $132,383.ERIC HINSON, St. Clair, MO, pled guilty in February to one felony count of mail fraud and five felony counts of tax evasion. He appeared today for sentencing before United States District Judge E. Richard Webber.
This case was investigated by the St. Clair Police Department, Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation, with the assistance of the St. Clair Fire Protection District. Assistant United States Attorney Hal Goldsmith handled the case for the U.S. Attorney's Office.
Former CEO of Miami Beach Community Health Center Sentenced in Six Million Dollar ScamRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), announced the sentencing of defendant Kathryn Abbate, 64, of Hollywood, FL, to 42 months in prison, to be followed by 3 years of supervised release.
According to the factual proffer, the defendant served as Chief Executive Officer (CEO) of the Miami Beach Community Health Center (the Center) from 2002 to mid-2012. The Center was a Federally Qualified Health Center (FQHC) during this time, and was a community-based organization providing medical care to persons regardless of ability to pay or insurance status. As an FQHC, the Center received millions of dollars of federal funding each year from 2008 to 2012
According to the factual proffer, from about 2008 through May 2012, Abbate embezzled money from the Center in a number of ways. First, Abbate caused the Center to pay her non-accrued vacation pay and other forms of compensation, totaling more than $3 million from between 2008 and 2012. Second, Abbate embezzled money from the Center by causing non-payroll checks to be issued payable to her. Specifically, from 2007 to 2012, Abbate caused the Center to disburse approximately 837 checks made payable to her totaling approximately $3 million for purported “community development.”
Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. The case is being prosecuted by Michael N. Berger.
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.
Former CENTCOM Employee Sentenced to 10 Years in Federal Prison for Attempted Sexual Enticement of A ChildRead the Press Release
Orlando, Florida - Chief U.S. District Judge Anne C. Conway today sentenced Stephen Governale (50, Tampa) to 10 years in federal prison for attempted enticement of a minor to engage in a sexual activity. Governale was also ordered to serve a ten-year term of supervision and required to register as a sex offender, following his release from prison. He pleaded guilty on January 29, 2013.
According to court documents, on September 11, 2012, the Federal Bureau of Investigation was contacted by the parents of a seventeen-year-old child who was receiving sexually inappropriate messages from Governale. At the time of his arrest, Governale, a United States Air Force Reserve Lieutenant Colonel, was a protocol officer at CENTCOM in Tampa. In an interview, the child victim explained that he met Governale through an organization affiliated with the military. He said that he went with Governale to conferences and stayed in Governale’s hotel room. The victim also stated that he and Governale had watched pornographic movies and engaged in sexual activity while staying together.
On September 21, 2012, as Governale was planning to travel to Central Florida for business, a Task Force Agent with the FBI assumed the child victim’s on-line identity. The agent began to communicate online with Governale. During th online chats Governale attempted to entice the child victim to engage in sexual activity. Governale also arranged to meet the victim at a location in Central Florida. When Governale arrived, he was arrested by the FBI.
This case was investigated by the Federal Bureau of Investigation and the Seminole County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
This is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc for more information about internet safety education.
Florida Based Seafood Company Settles with the United StatesRead the Press Release
Pescanova, Inc. Failed to Comply with National and International Regulations Governing the Importation and Exportation of Chilean Sea Bass
[Albany, New York] United States Attorney Richard S. Hartunian announced today that his office has settled a civil action it brought against Pescanova, Inc. (d/b/a Pescanova USA), an international seafood company with offices in Coral Gables, Florida, based upon the company’s exportation, and subsequent re-importation, of 9,600 pounds of Patagonian toothfish (also known as Chilean Sea Bass or Dissostichus eleginoides) on October 24 and December 15, 2010. As part of the settlement, Senior United States District Court Judge Lawrence E. Kahn issued a Consent Decree which authorized civil penalties, forfeiture and permanent injunctive relief against Pescanova. As part of the settlement, Pescanova will pay civil penalties totaling $35,000.00, forfeit $96,013.76, (the proceeds from the sale of the toothfish which were exported and re-imported) and the company is enjoined from committing similar violations in the future.
The Patagonian toothfish, an Antarctic Marine Living Resource (“AMLR”), is found in deep waters around Antarctica and the sub-Antarctic islands, as well as off the coast of Patagonia, a region in the southern part of Argentina and Chile. The United States is one of the largest and most lucrative markets for toothfish in the world. This fish is particularly susceptible to the threats of illegal fishing because it is commercially valuable and, as a slow-growing species, reaches marketable size before reaching sexual maturity. There is concern that these characteristics make toothfish particularly vulnerable to serious population declines if its harvest and trade are not monitored and controlled. The United States is a party to the international Convention on the Conservation of Antarctic Marine Living Resources and a member of the Commission for the Conservation of Antarctic Marine Living Resources (“CCAMLR”). CCAMLR has adopted binding conservation measures to address the conservation of Antarctic marine living resources, including the harvest and trade of toothfish. Members of CCAMLR are required to implement these binding measures with respect to their vessels and nationals. CCAMLR has implemented a Catch Documentation Scheme (“CDS”) designed to prevent and discourage the unlawful harvest and trade of toothfish by tracking toothfish from the point of harvest to the point of import for consumption. As part of the CDS, those authorized to harvest, import or export toothfish, must complete a Dissostichus Catch Document (“DCD”), a form which seeks specific information concerning the harvesting, importation and exportation of toothfish. In order to carry out its obligations with CCAMLR, including those related to the conservation of toothfish, the United States enacted the Antarctic Marine Living Resource Convention Act (“AMLRCA”). To implement the AMLRCA, the National Marine Fisheries Service (“NMFS”) promulgated regulations imposing various requirements on those who engage in the harvest and trade of toothfish and which are designed to help prevent illegal, unregulated, and unreported catches of toothfish. The Complaint, which was filed today in U.S. District Court in Albany, alleges that Pescanova did not comply with CCAMLR’s CDS, or with the United States’ implementing laws and regulations, when it failed to complete DCDs prior to exporting and re-importing toothfish in October and December of 2010.
Richard S. Hartunian, United States Attorney for the Northern District of New York, stated that “The United States has entered into a treaty with a number of nations and my office will enforce its provisions in this district. The treaty is designed to protect and preserve an Antarctic Marine Living Resource for which there is a concern that it will become extinct if its harvesting and trade are not monitored and controlled. It is important that we aggressively protect such species so that future generations are able to enjoy them.”
"NOAA continues to work cooperatively with the Department of Homeland Security Investigations, Customs and Border Protection, the Food and Drug Administration, and with other Nations," said Logan Gregory, special agent in charge of NOAA's Office of Law Enforcement's Northeast Division. "We do this to help ensure a level playing field in all sectors of the seafood industry."
The government’s Complaint alleges in part the following: Pescanova is a corporation with its principle place of business in Coral Gables, Florida that engages in the business of, among other things, importing and exporting seafood, including Patagonian toothfish. Sometime in July of 2010, Pescanova employees were trained by an employee of the National Oceanic and Atmospheric Administration (NOAA) concerning the trade requirements pertaining to Patagonian toothfish. Later that year, in October of 2010, Pescanova sold and transported 9,600 pounds of frozen Patagonian toothfish to a Canadian company from the United States through the Champlain, New York Port of Entry. The fish in question had been legally caught, and Pescanova had previously imported it into the United States from Argentina after filing the appropriate DCD with NOAA. Pescanova transported this toothfish to Canada without first completing an application for, and obtaining, the required validated export or re-export document (“Approval Action of Catch Documentation for Toothfish” form) issued by a NMFS designee.
When the toothfish were subsequently tested by officials from the Canadian Food Inspection Agency (“CFIA”), it was determined that they did not comply with CFIA’s standards for mercury. As a result, the fish could not be sold for consumption in Canada. On December 15, 2010, Pescanova arranged to have these fish transported from Canada to the United States through the Champlain Port of Entry. Once again, Pescanova did not first submit an application and obtain the required preapproval from the NMFS prior to importing these fish. The toothfish were seized by United States Customs and Border Protection officers on January 14, 2011, and eventually auctioned for $96,013.76.
Under the terms of the settlement, Pescanova will pay a civil administrative penalty of $22,000.00 to NOAA, a civil penalty of $13,000.00 to the United States Department of Justice, and consents to the administrative forfeiture of the $96,013.76 obtained from the sale of the 9,600 pounds of fish. In addition, Pescanova and its employees are permanently enjoined from importing, re-importing, exporting, or re-exporting Patagonian toothfish, or any other Antarctic marine living resources, unless they comply with the procedures promulgated by the CCAMLR and with the United States’ implementing laws and regulations. Pescanova agreed that in the event it imports, re-imports, exports or re-exports toothfish, or any other Antarctic marine living resources in violation of law or regulation, it will pay to the United States, upon the first violation, a civil contempt penalty of one hundred dollars ($100.00) for each pound, or portion thereof, of toothfish, or any other Antarctic marine living resources it so imports or exports. For each successive violation, Pescanova will pay a contempt penalty of five hundred dollars ($500.00) for each pound, or portion thereof, of toothfish or any other Antarctic marine living resources.
This matter is assigned to Assistant U.S. Attorney Thomas Spina Jr. News inquiries should be directed to Executive Assistant United States Attorney John Duncan [(315) 448-0672]. The investigation was conducted by agents with the United States Department of Commerce, National Oceanic and Atmospheric Administration (“NOAA”), and officers with the United States Department of Homeland Security Investigations, Customs and Border Protection.
Federal Jury Convicts Harrisburg Man of Illegally Possessing A FirearmRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Eric Chambers, age 42, of Harrisburg, was convicted Wednesday, in federal court, for possession of a firearm by a convicted felon following a two-day trial before U.S. District Court Judge William W. Caldwell. The jury deliberated approximately 30 minutes.
According to United States Attorney Peter J. Smith, Dauphin County had an active arrest warrant for Chambers following an attempted murder in September 2011. On January 9, 2012, police received a tip that Chambers was at the Red Roof Inn, Eisenhower Blvd., Harrisburg. Federal, state and local law enforcement responded and Chambers was arrested without incident.
A subsequent search of the hotel room revealed that Chambers had a loaded .40 caliber semi-automatic handgun and a loaded magazine that was hidden in the trash can.
Chambers was indicted by a federal grand jury for the illegal possession of a firearm in April 2012 as a result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Harrisburg Bureau Police Department and the Swatara Police Department.
Last month, Chambers was convicted of attempted murder and other charges in Dauphin County.
Chambers is awaiting sentencing on both the federal and county convictions.
The federal case was prosecuted by Assistant U.S. Attorney Meredith Taylor.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is life imprisonment. The federal statute also carries a 15 year mandatory minimum term of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Federal Inmate Pleads Guilty to Escaping from PrisonRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, an inmate who escaped from the Federal Prison Camp in Duluth in March 2013 and was on the run for six days pleaded guilty to that crime. Michael Joseph Krzyzaniak, age 64, of Minneapolis, specifically pleaded guilty to one count of escape from custody. Krzyzaniak, who was indicted on April 22, 2013, entered his plea before United States District Court Judge Susan Richard Nelson.
In his plea agreement, Krzyzaniak admitted that on March 30, 2013, he left the custody of the federal prison camp without authorization. He was arrested on April 5, 2013, at a Burnsville motel. He was serving a 151-month sentence for a 2012 conviction in the District of Minnesota for wire fraud and tax evasion. According to a law enforcement affidavit filed in the current case, Krzyzaniak was present for a prisoner count at 4:00 p.m. on March 30. However, he was not present for the prisoner count at 10:00 p.m.
For his crime, Krzyzaniak faces a potential maximum penalty of five years in federal prison, which may be tacked onto the sentence he is already serving. Judge Nelson will determine his sentence at a future hearing, yet to be scheduled.This case is the result of an investigation by the U.S. Marshals Service. It is being prosecuted by Assistant U.S. Attorney Manda M. Sertich.
Federal Grand Jury in South Bend Returns IndictmentsRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, IN—The United States Attorney's Office announced that a Grand Jury sitting in South Bend, Indiana, returned the following Indictments on June 12, 2013:
Kandi Biggins , 43, of Spencerville, Indiana, was charged in an eight-count Indictment with eight counts of bank fraud.Charges were filed as a result of an investigation by the Indiana State Police and Federal Bureau of Investigation.This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid.
Bryant Rios, 25, of South Bend, Indiana, was charged in a one-count Indictment with being a felon in possession of a firearm.Charges were filed as a result of an investigation by the South Bend Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives.This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid.
Abdul Amin Shabazz, 38, of South Bend, Indiana, was charged in a one-count Indictment with being a felon in possession of a firearm.Charges were filed as a result of an investigation by the South Bend Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives.This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald J. Schmid
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines. .
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Federal Grand Jury in Fort Wayne Returns IndictmentRead the Press Release
Fort Wayne, INCThe United States Attorney's Office announced that a Grand Jury sitting in South Bend, Indiana, returned the following Indictment on June 12, 2013: Deyante Stephens, 22, of Fort Wayne, Indiana was charged in a single count Indictment with armed bank robbery on or about February 14, 2013. This charge was filed as a result of an investigation by the Federal Bureau of Investigation, Northeast Indiana Federal Bank Robbery Task Force, and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony W. Geller.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
##END##Father and Son Sentenced to Prison in Connection with Bogus Foreclosure Rescue CompanyRead the Press Release
NEWARK, N.J. – A father and son who ran a mortgage loan fraud scheme that succeeded in obtaining $4.4 million in mortgage loans while masquerading as a foreclosure rescue operation were both sentenced to prison today, U.S. Attorney Paul J. Fishman announced.
Vito C. Grippo, 58, of Jackson, N.J., the president of Morgan Financial Equity Shares and Vanick Holdings, LLC, based in Holmdel, N.J., was sentenced to 96 months in prison. He previously pleaded guilty before U.S. District Judge Kevin McNulty to an Indictment charging him with one count of conspiracy to commit wire fraud, two counts of filing a false tax return for the years 2006 and 2007, and one count of aiding and procuring the filing of a false tax return for the year 2008.
Frederick “Freddie” Grippo, 32, of Old Bridge, N.J., formerly a loan officer at Worldwide Financial Resources and an officer of Vanick Holdings, was sentenced to 41 months in prison. He previously pleaded guilty before Judge McNulty to an information charging him with one count of conspiracy to commit wire fraud. Judge McNulty imposed both sentences today in Newark federal court.
According to documents filed in this case and statements made in court:
Between January 2008 and February 2010, Vito Grippo held Morgan Financial out to the public as a company that could help homeowners who faced foreclosure on their homes through something Grippo called the “Equity Share Program.” As described by Grippo and his associates, the Equity Share Program involved creating a limited liability company (LLC) in the name of the homeowner’s house, in which the homeowner would supposedly own a 90 percent interest with the rest to be owned by one or two private investors.
In reality, the so-called investors invested nothing and were instead straw buyers recruited by Vito Grippo or his son, Frederick Grippo, because they had good credit. The Grippos and their associates then applied for mortgages in the names of the “investors” for the purchase of the properties owned by the homeowners in distress.
A homeowner in distress would come to a closing in Vito Grippo’s office in Holmdel and be given a stack of documents to sign to prevent foreclosure. The homeowners frequently did not understand that they would be transferring title to their homes to the “investor.”
The new mortgage loan applications filled out by the Grippos or their associates in the name of one of the investors contained materially false information about the loan applicant’s monthly income, his assets and whether the residence to be bought would be applicant’s primary residence.
Once the new loan application was filled out, it would be submitted to Worldwide Financial Resources for processing, where Freddie Grippo, a loan officer at Worldwide, would see to it that the loan was approved. Once the loan was approved and the loan money was wired to the settlement agent for a given transaction, Vito Grippo would direct the settlement agent to forward a portion of those loan proceeds to bank accounts that Vito Grippo controlled.
Properties that lost money through the Equity Share Program were found throughout the metropolitan area, including homes in Rutherford, N.J., Monroe, N.J. and Brooklyn, N.Y.
For the year 2006, Vito Grippo did not report $289,780 in gross income from the activities of Vanick Holdings LLC. For the year 2007, he did not report $213,261; and for the year 2008, he did not report $1,366,261.
In addition to the prison terms, Judge McNulty sentenced Vito Grippo to five years of supervised release and Frederick Grippo to three years of supervised release. Restitution will be determined at a hearing on July 17, 2013.
U.S. Attorney Fishman credited special agents from the FBI’s Red Bank Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford in Newark; special agents from IRS—Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, and postal inspectors in the Newark Division, under the direction of Inspector in Charge Maria L. Kelokates, for the investigation leading to today’s sentences.
The government is represented by Assistant U.S. Attorney Bohdan Vitvitsky of the U.S. Attorney’s Economic Crimes Unit in Newark.
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Defense counsel: Vito Grippo: Patrick N. McMahon Esq., Assistant Federal Public Defender, Newark
Frederick Grippo: Stacy A. Biancamano Esq., West Orange, N.J.Fate of Kaboni Savage Co-Defendant DeterminedRead the Press Release
PHILADELPHIA - The federal jury that voted in favor of death for drug kingpin Kaboni Savage, today voted in favor of life for Savage co-defendant Steven Northington, 41. Savage was formally sentenced to death last week by U.S. District Court Judge R. Barclay Surrick. He is the first defendant in the Eastern District of Pennsylvania to receive the death penalty in federal court. He was convicted on May 13, 2013 of 12 counts of murder in aid of racketeering, one count of retaliating against a witness by murder, conspiracy to commit murder in aid of racketeering, and one count of conspiracy to participate in a Racketeering Enterprise. Savage ordered the October 9, 2004 firebombing of the home of Eugene Coleman’s family. Coleman was a federal witness at the time. Six people were killed in the arson murder, including four children. The jury had found Northington guilty of the murders of Barry Parker in 2003 and of Tybius Flowers in 2004, in addition to Racketeering (RICO) conspiracy. Northington will be formally sentenced on June 19, 2013.
Co-defendants Kidada Savage, Kaboni Savage’s sister, and Robert Merritt face mandatory life sentences. They were convicted at trial of the RICO conspiracy and Kidada Savage was also convicted of the Coleman family murders.
Today’s penalty verdict was announced by United States Attorney Zane David Memeger, Acting Assistant Attorney General Mythili Raman for the Justice Department’s Criminal Division, and Special Agent-in-Charge Edward J. Hanko of the FBI’s Philadelphia Division.
“Achieving justice sometimes requires us to ask the citizens on a jury to make the most difficult sentencing decision imaginable,” said Memeger. “In this case, after convicting the defendants of crimes involving murder, the jurors chose death for Kaboni Savage and life for Stephen Northington. The defendants’ horrific conduct struck at the very heart of our criminal justice system which depends on witnesses testifying without fearing for their lives or the lives of their family members. We appreciate the time and effort that the jury committed to reaching a fair verdict as to each defendant. While the verdicts cannot restore the loss of life taken by members of the Kaboni Savage drug organization, we hope that the jury verdicts bring some sense of closure to the victims’ families and friends. I want to thank the phenomenal investigative and trial team that worked so hard over many years to bring the defendants to justice for their despicable crimes.”
“For more than a decade, Kaboni Savage and members of his organization used murder and violence to intimidate and retaliate against anyone who threatened their drug trade, and along the way mercilessly killed a cooperating witness’s family members, including innocent children,” said Acting Assistant Attorney General Raman. “We are hopeful that the jury’s verdict brings some measure of justice to the victims of Savage’s heinous crimes.”
“Kaboni Savage and his crew murdered men, women, and children – for money, power, and, ultimately, just for revenge,” said Edward J. Hanko, FBI Special Agent in Charge. “They thought no more of taking lives than of taking a phone call. After more than a decade of brutality, Northington’s life sentence and Savage’s death sentences are justly deserved.”
Savage’s drug enterprise operated primarily in the North Philadelphia area from at least late 1997 to 2010. After Savage was indicted on drug charges in 2004, he ordered the murders of the family of government witness Eugene Coleman. Lamont Lewis, who has pleaded guilty, firebombed the Coleman family home on Savage’s orders which Kidada Savage relayed to Lewis.In addition to the murders of the six people inside the Coleman home, Savage was convicted of:
- the March 19, 1998, murder of Kenneth Lassiter, age 44, of Lansdale, PA, near the corner of 8th and Butler Streets in Philadelphia;
- the September 6, 2000 murder of Mansur “Shafiq”Abdullah, age 22, of Philadelphia. Abdullah was shot and his burned body was later recovered in the 4200 block of North Park Avenue, in Philadelphia;
- the September 13, 2001 murder of Carlton “Mohammed” Brown, age 27, of Philadelphia;
- the February 26, 2003 murder of Barry Parker, age 32, of Philadelphia, in the 3900 block of North Franklin Street, in Philadelphia;
- the March 14, 2003 murder of Tyrone Toliver, age 26, of Cherry Hill, NJ, in the 3500 block of North Palmetto Street in Philadelphia; and
- the March 1, 2004 murder of Tybius Flowers, age 32, in the 3700 block of N. 8th Street in Philadelphia;
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, the Philadelphia Police Department, the Philadelphia District Attorney’s Office, and the Maple Shade, New Jersey Police Department. The United States Bureau of Prisons, the United States Marshals Service, and HIDTA (High Intensity Drug Trafficking Area) also assisted in the investigation. The case was prosecuted by Assistant United States Attorneys David E. Troyer and John M. Gallagher and Trial Attorney Steve Mellin, of the Criminal Division’s Capital Case Unit at the U.S. Department of Justice.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525East St. Louis Man Sentenced for Crack Cocaine OffensesRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Joshwa Givens was sentenced to 57 months in prison for offenses relating to the sale of crack cocaine.
Givens, 28, of East St. Louis, had pled guilty in federal district court on February 27, 2013, to three counts of Possession of Crack Cocaine with Intent to Distribute and to one count of Possession of Crack Cocaine. Givens has been confined in federal custody since his arraignment on January 14, 2013.
At his change of plea hearing in February, Givens admitted possessing crack cocaine with intent to distribute it in St. Clair County on August 7, 2011 and March 16, 2012, and in Madison County on January 2, 2012. Police seized a total of 22 grams of crack cocaine (over 3/4 of an ounce) from Givens, along with $2,579 in cash. Givens admitted that the cash came from the sale of crack cocaine. Givens was on state probation for two separate crack cocaine felony convictions when he was arrested on the federal charges.
The investigation which resulted in Givens’ arrest and conviction was conducted by the Metropolitan Enforcement Group of Southwestern Illinois (MEGSI), the Drug Enforcement Administration (DEA), the Fairview Heights Police Department, the Belleville Police Department, the Caseyville Police Department, and the Collinsville Police Department.
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Eagle Pass Businessman Indicted in Connection with Maverick County Bribery, Kickback and Bid-Rigging SchemeRead the Press Release
In Eagle Pass last night, Federal Bureau of Investigation agents along with Texas Department Public Safety investigators arrested 52-year-old Salvador Castillon, owner of South Texas Concrete based in Eagle Pass, in connection with an alleged bribery, kickback and bid-rigging scheme announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
A federal grand jury indictment, returned yesterday and unsealed this morning, charges Castillon with two counts of paying a bribe to an agent of an organization receiving federal funds. According to the indictment, Castillon was awarded Maverick County construction contracts totaling $416,800 in 2010 and $148,000 in 2011. The indictment alleges that in exchange for each Maverick County construction contract he was awarded, Castillon agreed to pay a Maverick County commissioner between $3,000 and $5,000.
Upon conviction, Castillon faces up to ten years in federal prison and a maximum $250,000 fine per count.
Castillon appeared before U.S. Magistrate Judge Collis White in Del Rio this morning for his initial appearance. Judge White ordered that Castillon remain in custody pending the outcome of a detention hearing scheduled for 9:00am on Monday, June 17, 2013.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741. Assistant United States Attorney Michael Galdo is prosecuting this case on behalf of the Government.
An indictment 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.
Director of Cleveland Non-Profit Pleads Guilty to Tax ChargesRead the Press Release
The director of a Cleveland non-profit organization pleaded guilty today to withholding taxes from employees but not paying them over to the government, said Steven M. Dettelbach, the United States Attorney for the Northern District of Ohio.
Edward G. Kramer, 62, also evaded his personal income tax obligations when he falsified his income tax returns for two years and did not file a file return in two other years.
He pleaded guilty to a 10-count criminal information in U.S. District Court Thursday. He is scheduled to be sentenced Sept. 13.
“We all have an obligation to truthfully report our income and pay taxes,” Dettelbach said. “It is especially incumbent on those who work in our legal system to follow the law themselves.”
Kramer was director and chief counsel of Housing Advocates, Inc., a non-profit organization in Cleveland that received federal funding from the U.S. Department of Housing and Urban Development. Kramer also maintained a private law practice and owned a property leasing business called Remark, according to the information.
Kramer underreported his income for calendar years 2007 (underreported by $79,262) and 2008 (underreported by $101,571), the understatement consisting of unreported payments from Housing Advocates accounts for his benefit as well as unreported income from his private law practice, according to the information.
Kramer also failed to file income tax returns for 2009 and 2010, despite the fact that he had taxable income of approximately $149,884 in 2009 and $270,687 in 2010, according to the information.
Collectively, Kramer sought to avoid paying taxes on approximately $500,000 in income between 2007 and 2010, according to the information.
Kramer was responsible for collecting, accounting for and paying over quarterly to the Internal Revenue Service income and FICA taxes on behalf of Housing Advocates, Inc. The organization deducted and collected the required taxes from the wages of its employees but Kramer willfully failed to pay over the taxes, according to the information.
The taxes collected but not paid over from January 2009 until September 2010 total nearly $80,000, according to the information.
This case is being prosecuted by Assistant U.S. Attorney Justin J. Roberts following an investigation by the Internal Revenue Service – Criminal Investigations and the Department of Housing and Urban Development – Office of Inspector General.
Department of Justice Reaches Landmark Settlement Agreement with Rhode Island and City of Providence Under the ADARead the Press Release
The Justice Department announced today that it has entered into an interim settlement agreement with the State of Rhode Island and the City of Providence that will resolve violations of the Americans with Disabilities Act (ADA) for approximately 200 Rhode Islanders with intellectual and developmental disabilities (I/DD).
This first-of-its-kind agreement addresses the rights of people with disabilities to receive state- and city-funded employment and daytime services in the broader community, rather than in segregated sheltered workshops and facility-based day programs exclusively with other people with disabilities. The department launched an ADA investigation in January 2013 into Rhode Island’s day activity service system for people with I/DD. The department’s initial investigation found that the majority of people receiving state- and city-funded employment and daytime services through segregated programs can and want to work and receive services in more integrated community settings. Under the ADA people with disabilities have the right to receive services in the most integrated settings appropriate for them.
This matter was initially brought to light by an investigation by the U.S. Department of Labor’s Wage & Hour Division, regarding improper subminimum wages being paid to people with disabilities working at TTP. This week, the Department of Labor revoked TTP’s certificate under the Fair Labor Standards Act Section 14(c).
The Department of Justice’s investigation has initially focused on a private provider, Training Thru Placement (TTP), as one of the largest facility-based employment service providers in the state’s system. The investigation also revealed that the school-based sheltered workshop at the Harold A. Birch Vocational Program at Mount Pleasant High School (Birch), was the point of origin for many people entering TTP. Since the department began its investigation earlier this year, the state and the city have worked cooperatively with the department to reach an agreement to resolve the violations.
The department found that the approximately 90 workers with disabilities at TTP were not in the most integrated setting appropriate for them and that the students in the sheltered workshop at Birch were at serious risk of unnecessary placement at TTP following their exit from school. TTP is located in a residential neighborhood, without easy access to stores, offices or public spaces. People with I/DD typically remain at TTP all day, packaging and labeling medical supplies, wrapping television remote controls in plastic or hand-sorting jewelry. The typical tenure at TTP is 15 to 30 years. TTP workers have little or no contact with persons without disabilities. According to TTP’s reports, TTP workers with disabilities make an average hourly wage of $1.57 per hour, with one individual making as little as 14¢ per hour.
The department found that people with disabilities at TTP are capable of working in real jobs with supports, and participating in activities in the community, such as volunteering, exercising, taking classes, going to museums, plays and sporting events. Many TTP clients had specifically and repeatedly asked for help to find and be supported in real jobs in the community. However, the state and city did not respond to their requests and did not make integrated employment services and community-based daytime activities available. For example, one person with I/DD, who has worked at TTP for approximately 30 years, said that he asked nearly every year to work in a hardware store, yet he was never assessed or received services or supports necessary for him to do so. When asked how he would feel about working in integrated employment, he said, “I’d feel I accomplished something . . . something to be happy about.”
The sheltered workshop at Birch was also found to discriminate against its approximately 85 students with I/DD because it cultivated, trained and prepared students to work at TTP as adults. The work that Birch’s students performed in the school’s sheltered workshop was similar to tasks performed by TTP’s service recipients. Students ages 14 to 21 with I/DD would participate in the Birch sheltered workshop for one or two 55-minute periods per day, sometimes to do work for TTP. At times when the Birch sheltered workshop faced deadlines, some students were removed from their regular classes and spent large portions of their school days in the workshop. Students were generally denied diplomas and received only “certificates of attendance.” Students at the Birch sheltered workshop were paid between 50¢ and $2 per hour, or were not paid at all, no matter what job function they performed or how productive they were.
The school provided virtually no opportunities for students to experience or prepare for real jobs and made direct referrals to adult sheltered workshops as the students neared the end of school. Because of the lack of integrated opportunities and direct referrals, invariably, the students would move on to an adult sheltered workshop, TTP, after they left school instead of to integrated work places.
“The Supreme Court made clear over a decade ago that unnecessary segregation of people with disabilities is discriminatory. Such segregation is impermissible in any state or local government program, whether it be residential services, employment services, or other programs,” said Eve Hill, Senior Counselor to the Assistant Attorney General for Civil Rights. “Unfortunately, the type of segregation and exploitation we found at TTP and Birch is all too common when states allow low expectations to shape their disability programs. The reforms the state and city will undertake under this interim agreement will support people with disabilities to participate in their communities. Thanks to the vision and leadership of the State and the City, both the individuals and their communities will benefit.”
The state has now stopped providing services or funding for new participants at TTP’s sheltered workshop and facility-based day program, and the city has stopped providing services or funding to Birch’s in-school sheltered workshop. Over the next year, the state and city will provide supported employment services and placements to all adults at TTP and youth in transition from Birch to help them find, get, keep and succeed in real jobs. The services will be designed to help people access jobs in typical work settings where they can interact with non-disabled coworkers and customers, and enjoy the same employment benefits as non-disabled peers. When individuals are not working, they will have access to integrated day services.Under the agreement, individuals will receive supported employment and integrated day services sufficient to support a normative 40 hour work week, with the expectation that individuals will work, on average, in a supported employment job at competitive wages for at least 20 hours per week.
For students leaving Birch, the agreement requires a robust career development and transition planning process to ensure that youth can successfully move into community-based jobs, rather than to segregated settings like TTP. The department’s statewide investigation of the state’s day activity service system for people with I/DD will continue. The interim agreement is due to the efforts of the following Civil Rights Division staff: Regina Kline, Sheila Foran, Justin Park, Lance Simon and Chloe Holzman.Please visit www.ada.gov/olmstead to learn more about the Division’s ADA Olmstead enforcement efforts and www.justice.gov/crt to learn more about the laws enforced by the Justice Department’s Civil Rights Division.
Related Materials:
Agreement
ComplaintDepartment of Justice Reaches Landmark Settlement Agreement with Rhode Island and City of Providence Under the ADARead the Press Release
WASHINGTON – The Justice Department announced today that it has entered into an interim settlement agreement with the State of Rhode Island and the City of Providence that will resolve violations of the Americans with Disabilities Act (ADA) for approximately 200 Rhode Islanders with intellectual and developmental disabilities (I/DD).
This first-of-its-kind agreement addresses the rights of people with disabilities to receive state- and city-funded employment and daytime services in the broader community, rather than in segregated sheltered workshops and facility-based day programs exclusively with other people with disabilities. The department launched an ADA investigation in January 2013 into Rhode Island’s day activity service system for people with I/DD. The department’s initial investigation found that the majority of people receiving state- and city-funded employment and daytime services through segregated programs can and want to work and receive services in more integrated community settings. Under the ADA people with disabilities have the right to receive services in the most integrated settings appropriate for them.
This matter was initially brought to light by an investigation by the U.S. Department of Labor’s Wage & Hour Division, regarding improper subminimum wages being paid to people with disabilities working at TTP. This week, the Department of Labor revoked TTP’s certificate under the Fair Labor Standards Act Section 14(c).
The Department of Justice’s investigation has initially focused on a private provider, Training Thru Placement (TTP), as one of the largest facility-based employment service providers in the state’s system. The investigation also revealed that the school-based sheltered workshop at the Harold A. Birch Vocational Program at Mount Pleasant High School (Birch), was the point of origin for many people entering TTP. Since the department began its investigation earlier this year, the state and the city have worked cooperatively with the department to reach an agreement to resolve the violations.
The department found that the approximately 90 workers with disabilities at TTP were not in the most integrated setting appropriate for them and that the students in the sheltered workshop at Birch were at serious risk of unnecessary placement at TTP following their exit from school. TTP is located in a residential neighborhood, without easy access to stores, offices or public spaces. People with I/DD typically remain at TTP all day, packaging and labeling medical supplies, wrapping television remote controls in plastic or hand-sorting jewelry. The typical tenure at TTP is 15 to 30 years. TTP workers have little or no contact with persons without disabilities. According to TTP’s reports, TTP workers with disabilities make an average hourly wage of $1.57 per hour, with one individual making as little as 14¢ per hour.
The department found that people with disabilities at TTP are capable of working in real jobs with supports, and participating in activities in the community, such as volunteering, exercising, taking classes, going to museums, plays and sporting events. Many TTP clients had specifically and repeatedly asked for help to find and be supported in real jobs in the community. However, the state and city did not respond to their requests and did not make integrated employment services and community-based daytime activities available. For example, one person with I/DD, who has worked at TTP for approximately 30 years, said that he asked nearly every year to work in a hardware store, yet he was never assessed or received services or supports necessary for him to do so. When asked how he would feel about working in integrated employment, he said, “I’d feel I accomplished something . . . something to be happy about.”
The sheltered workshop at Birch was also found to discriminate against its approximately 85 students with I/DD because it cultivated, trained and prepared students to work at TTP as adults. The work that Birch’s students performed in the school’s sheltered workshop was similar to tasks performed by TTP’s service recipients. Students ages 14 to 21 with I/DD would participate in the Birch sheltered workshop for one or two 55-minute periods per day, sometimes to do work for TTP. At times when the Birch sheltered workshop faced deadlines, some students were removed from their regular classes and spent large portions of their school days in the workshop. Students were generally denied diplomas and received only “certificates of attendance.” Students at the Birch sheltered workshop were paid between 50¢ and $2 per hour, or were not paid at all, no matter what job function they performed or how productive they were.
The school provided virtually no opportunities for students to experience or prepare for real jobs and made direct referrals to adult sheltered workshops as the students neared the end of school. Because of the lack of integrated opportunities and direct referrals, invariably, the students would move on to an adult sheltered workshop, TTP, after they left school instead of to integrated work places.
“The Supreme Court made clear over a decade ago that unnecessary segregation of people with disabilities is discriminatory. Such segregation is impermissible in any state or local government program, whether it be residential services, employment services, or other programs,” said Eve Hill, Senior Counselor to the Assistant Attorney General for Civil Rights. “Unfortunately, the type of segregation and exploitation we found at TTP and Birch is all too common when states allow low expectations to shape their disability programs. The reforms the state and city will undertake under this interim agreement will support people with disabilities to participate in their communities. Thanks to the vision and leadership of the State and the City, both the individuals and their communities will benefit.”
The state has now stopped providing services or funding for new participants at TTP’s sheltered workshop and facility-based day program, and the city has stopped providing services or funding to Birch’s in-school sheltered workshop. Over the next year, the state and city will provide supported employment services and placements to all adults at TTP and youth in transition from Birch to help them find, get, keep and succeed in real jobs. The services will be designed to help people access jobs in typical work settings where they can interact with non-disabled coworkers and customers, and enjoy the same employment benefits as non-disabled peers. When individuals are not working, they will have access to integrated day services.Under the agreement, individuals will receive supported employment and integrated day services sufficient to support a normative 40 hour work week, with the expectation that individuals will work, on average, in a supported employment job at competitive wages for at least 20 hours per week.
For students leaving Birch, the agreement requires a robust career development and transition planning process to ensure that youth can successfully move into community-based jobs, rather than to segregated settings like TTP. The department’s statewide investigation of the state’s day activity service system for people with I/DD will continue. The interim agreement is due to the efforts of the following Civil Rights Division staff: Regina Kline, Sheila Foran, Justin Park, Lance Simon and Chloe Holzman.Please visit www.ada.gov/olmstead to learn more about the Division’s ADA Olmstead enforcement efforts and www.justice.gov/crt to learn more about the laws enforced by the Justice Department’s Civil Rights Division.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/Contact: 401-709-5357
[email protected]Delaware Resident Sentenced in Manhattan Federal Court to Six Years in Prison for Trafficking in Stolen Identification Information for over 100,000 Online AccountsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JUSTIN MILLS was sentenced today in Manhattan federal court to six years in prison for trafficking in tens of thousands of access devices, including stolen credit card numbers and stolen login information for online accounts at Paypal and other financial websites. MILLS pled guilty on January 3, 2013, and was sentenced today by U.S. District Judge P. Kevin Castel.
Manhattan U.S. Attorney Preet Bharara said: “With his sentence today, Justin Mills joins the growing ranks of cybercriminals to be punished for abusing the Internet to access and exploit people’s personal financial information. Together with our law enforcement partners, including the extraordinary efforts of the FBI, this Office continues its work to disrupt the networks that incubate the expanding cyber threat.”
According to the Information, the Complaint previously filed in the case, and statements made during today’s sentencing proceeding:
MILLS was arrested in June 2012 as part of “Operation Card Shop,” an international law enforcement operation in which 30 defendants were ultimately arrested in 13 countries for their involvement in various “carding” crimes – offenses in which the Internet is used to traffic in and exploit stolen credit card, bank account, and other personal identification information. As part of the investigation, from June 2010 to May 2012, the Federal Bureau of Investigation (“FBI”) operated an undercover carding forum (the “UC Site”), which, like other underground forums commonly used by carders, enabled its users to discuss various topics related to carding, and to buy, sell, and exchange goods and services related to carding, including stolen credit card data. The FBI established the UC Site in an effort to identify cybercriminals engaged in carding and to detect and investigate their crimes. The UC Site was configured to allow the FBI to monitor and to record the discussion threads posted to the site, as well as private messages sent through the site between registered users.
MILLS was a user of the UC Site who used malicious software to steal usernames and passwords from Internet users that could be used to access various types of online accounts, including financial accounts at banks and online payment services such as Paypal. MILLS trafficked in this stolen login information, advertising to others on the UC Site that he had login information for well over 100,000 online accounts for sale, including accounts at Amazon, Facebook, Ebay, and other popular websites. A search of MILLS’ computer following his arrest recovered login information for 15,000 Paypal accounts alone, along with login information for tens of thousands of online accounts associated with other online services. MILLS also trafficked in stolen credit card data. In addition to trafficking in stolen login information and credit card accounts, MILLS himself used the access devices he stole to effect fraudulent purchases of gift cards and goods on the Internet, which he sold to others.
In addition to the prison term, Judge Castel sentenced MILLS, 20, of Smyrna, Delaware, to three years of supervised release. MILLS was also ordered to pay restitution and forfeiture of $50,000.
In sentencing Mills, Judge Castel said, “This man was running a business, and a business that was spreading misery and had the potential of further spreading misery to people throughout the country. Think of the disruption to the individuals, think of the losses to those who have to make good on credit card transactions, or online transactions, or frauds. There was a ripple effect that flowed from it.”
Judge Castel added, “There is also a need to deter others from crimes of this nature. This is an offense which is very difficult to detect, very difficult to find people who perpetrate it, and when they are unmasked, it is important that the word go forth that the punishments are severe.”
Mr. Bharara praised the investigative work of the FBI’s Cyber Crime Task Force.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorney Serrin Turner is in charge of the prosecution.
Convicted Child Sex Offender Sentenced to More Than 21 Years in Prison for Receipt of Child PornographyRead the Press Release
Orlando - U.S. District Judge Anne C. Conway today sentenced Michael F. Callahan (63, Palm Bay) to 21 years and eight months in federal prison for receipt of child pornography. The court also ordered him to forfeit the computer he used to commit the offense. As part of Callahan's sentence, he was ordered to serve a life term of supervised release and to register as a sex offender, following his release from prison. Callahan pleaded guilty on January 24, 2013.
According to court documents, on June 22, 2012, Callahan was convicted of illegal sexual contact with a minor and possession of child pornography in Connecticut Superior Court. Callahan returned to Florida to his Palm Bay home pending his sentencing hearing. Two weeks later, a Federal Bureau of Investigation task force agent downloaded several videos of child pornography from Callahan, that Callahan had made available on a file sharing network. On August 2, 2012, federal agents executed a search warrant at Callahan's home and seized his computer. Callahan admitted that he continued to download and possess child pornography after his Connecticut conviction. A forensic examination of Callahan’s computer revealed 736 movies and 12 pictures showing the sexual abuse of prepubescent girls.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Karen L. Gable.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. For more information about internet safety education, please visit www.projectsafechildhood.gov and click on the tab "other resources."
Colorado Man Sentenced for Identity Fraud, Passport Fraud, Possession of Stolen Goods, and Possession of A Firearm by A Convicted FelonRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced thatWilliam Lyman Agnew, 55, of Cripple Creek, Colo., was sentenced Tuesday by U.S. District Court Judge Tom Stagg, to 51 months in prison with three years supervised release for identity fraud, passport fraud, possession of stolen goods, and possession of a firearm by a convicted felon.
According to evidence presented in court hearings, Agnew fled Cripple Creek, Colo., after stealing property and possessions from a residence there in October 2010. Agnew came to Louisiana in January 2011. While in Louisiana, he obtained and used four false identities and obtained driver’s licenses, Social Security cards, birth certificates, and other forms of identification. He also attempted to obtain a U.S. Passport using one of his false identities. The FBI in Monroe, La., discovered Agnew was living and working in Monroe at a local business and arrested Agnew on April 3, 2012. After Agnew’s arrest, many of the items stolen in Colorado were found and seized by federal agents at a storage unit in Monroe that Agnew had rented under one of his false names.The Cripple Creek, Colo., Police Department; the ATF in Colorado and Louisiana; the FBI, the Social Security Administration-Office of the Inspector General; and the U.S. Department of State-Diplomatic Security Service investigated the case. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case.
Coldspring Man Federally Indicted in Death of U.S. Postal Service WorkerRead the Press Release
HOUSTON – A grand jury sitting in Houston has returned a two-count indictment against James Wayne Ham, 36, of Coldspring, in the recent murder of a mail carrier with the United States Postal Service (USPS), United States Attorney Kenneth Magidson announced today along with Inspector in Charge Robert Wemyss, United States Postal Inspection Service (USPIS) and San Jacinto County District Attorney Richard Countiss.
Ham is charged with one count of murder and one count of using a firearm in the commission of a crime of violence. The indictment alleges that on or about May 17, 2013, Ham committed premeditated murder of a USPS employee while she was engaged in the performance of her official duties and that he intentionally carried, brandished and discharged a firearm in the commission of that murder.
A criminal complaint was filed Monday, May 20, 2013, the day after his arrest. He made an initial appearance the following day, at which time he was ordered held without bond pending further criminal proceedings. He is expected to make an initial appearance on the indictment in the near future.
The investigation began shortly following the receipt of a 911 call from the son of the now deceased USPS worker on Friday, May 17. He indicated he had been speaking with his mother via cell phone and heard two loud noises. His mother allegedly told him she had been shot. Shortly thereafter, the phone was disconnected, according to the complaint.
The complaint alleges the victim was shot on Friday shortly after delivering mail at Ham’s residence. The victim was on her normal rural delivery route in her personal vehicle. Ham allegedly shot her multiple times at close range with a .30/30 caliber rifle.
Ham then allegedly drove the vehicle to a nearby secluded area and set it on fire.
According to the complaint, the victim’s body was discovered Friday in her burning vehicle in San Jacinto County. Firefighters extinguished the flames and found the woman inside.
The investigation eventually led to Ham after it was discovered he had allegedly complained previously about not getting his mail delivered properly, according to the complaint.
Ham was located after an extensive manhunt and arrested without incident Sunday, May 20, 2013, near his home in San Jacinto County.
If convicted, he could potentially face the death penalty.
A variety of local, state and federal law enforcement agencies have been and will continue to work together in furtherance of the investigation and prosecution of this matter to ensure the proper administration of justice.
The case is being investigated by the USPIS, San Jacinto County Sheriff’s Office, Texas Rangers, San Jacinto Constable Precinct 4, Texas Department of Criminal Justice, Montgomery County Sheriff’s Department, Texas Parks and Wildlife, San Jacinto County Fire Marshall and the San Jacinto County District Attorney’s Office. Also providing assistance was the Bureau of Alcohol, Tobacco, Firearms and Explosives and the volunteer fire departments in Point Blank and Cape Royale. Assistant United States Attorneys Casey MacDonald, Suzanne Elmilady and Joe Magliolo are prosecuting.
An indictment is a formal accusation of criminal conduct, not evidence.
Clifton, N.J.-based CPA and Client Arrested, Charged for Attempted Bribes of IRS Revenue AgentRead the Press Release
NEWARK, N.J. – A Certified Public Accountant with an office in Clifton, N.J., and one of his clients were arrested this morning by federal agents for allegedly trying to bribe an IRS revenue agent to reduce the client’s tax liability of more than $900,000, U.S. Attorney Paul J. Fishman announced.
Hamed Aref, 41, of Clifton, N.J., and his client Yousef Zaben, 62, of North Bergen, N.J., are each charged in a criminal complaint with one count of conspiracy to bribe a public official and two counts of bribery of a public official. Both men are variously charged for alleged bribes related to Zaben’s tax liability. One of the bribery charges against Aref also alleges he attempted to pay an IRS revenue agent to reduce the tax liability of another client, Zaben’s son.
The men were arrested this morning at their homes by special agents of the Department of the Treasury’s Office of Inspector General for Tax Administration (TIGTA) and are expected to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to documents filed in this case:
An IRS revenue agent working in the Mountainside, N.J., IRS office – referred to in the complaint as “R.A.” – was assigned to conduct an audit in February 2012 of Zaben’s son, a client of Aref’s. During a meeting with Aref that month, R.A. told him that approximately $90,000 in bank discrepancies for the 2010 tax year would require additional tax payments.
Aref ran his own accounting and tax preparation firm. In a conversation begun in Aref’s office and continued outside the building, per the CPA’s request, Aref asked R.A. to reduce the tax liability by $20,000, offering approximately $2,000 to the agent in exchange. R.A. pretended he would think about the offer and set a date for another meeting with Aref, then immediately reported the bribe attempt to law enforcement officers from TIGTA.
When Aref and R.A. met again in March 2012, R.A. was outfitted with video and audio recording equipment provided by law enforcement. At that meeting, Aref asked for documentation reflecting a reduction in his client’s income of more than $32,000 for tax years 2009 and 2010, and R.A. produced a false audit report reflecting the requested numbers. Aref then asked R.A. to leave the office and placed an envelope with $3,000 cash on R.A.’s chair. When R.A. returned, Aref told the agent the money was from Zaben, and stood guard while R.A. counted the cash out on the desk.
A subsequent IRS audit of Zaben revealed a number of large, unexplained bank deposits in 2009 and 2010, totaling more than $1.6 million, on which Zaben owed the IRS approximately $904,367. During meetings in February and March 2013, Aref and R.A. met at the Clifton office to discuss the liability. Aref provided false figures to R.A. that showed a total tax liability of approximately $1,137.94 for those years, and suggested a meeting between Zaben and R.A.
At that meeting, in April 2013, R.A. showed Zaben both the correct and falsified audit reports, and Zaben paid R.A. the falsely reduced amount of $1,137.94. Zaben then produced $10,000 in cash, which both defendants said was for R.A. Zaben also said he would pay R.A. an additional $5,000, some of which he gave to R.A. at a later meeting.
Each of the meetings in which bribes were paid was recorded by law enforcement.
The conspiracy count carries a maximum potential penalty of five years in prison, and the bribery counts each carry a maximum potential penalty of 15 years in prison. Each of the counts also carries a maximum $250,000 fine.
U.S. Attorney Fishman praised special agents of TIGTA, under the direction of Special Agent in Charge Robert Geary, for the investigation leading to today’s arrests.
The government is represented by Assistant U.S. Attorney Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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Aref, Hamed et al. Complaint
Cleveland Man Guilty of Trying to Destroy A Bridge with ExplosivesRead the Press Release
A Cleveland man was found guilty of trying to use explosives to destroy a bridge in Northeast Ohio, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Cleveland Division of the Federal Bureau of Investigation.
Joshua Stafford, 24, was found guilty of conspiracy to use weapons of mass destruction, attempted use of weapons of mass destruction and malicious use of an explosive device to destroy property used in interstate commerce following a three-day trial before U.S. District Judge David Dowd. Stafford is scheduled to be sentenced on Sept. 11 at noon.
“We all need to thank the FBI and its law enforcement partners,” Dettelbach said. “The evidence in this trial made clear that their actions saved innocent lives. By being diligent, smart and responsible, law enforcement agents were able to not only literally defuse a dangerous situation, but they also were able to catch a dangerous group of violent men before they were able to harm anyone else.”
“This defendant took it upon himself to operate the cell phone he believed to be the device that would detonate two IED devices and cause potentially significant damage to the Route 82 Brecksville-Northfield High Level Bridge,” Anthony said. “This defendant’s callous disregard for our community, all in the name of making his own ideological views known, reinforces the need for law enforcement to work diligently to confront and stop terrorists from committing violent acts against our fellow citizens.”
Stafford is the last of five men to be found guilty for their roles in a conspiracy to destroy the Route 82 Brecksville-Northfield High Level Bridge. Cars travel over the bridge, which crosses from Brecksville, Ohio to Sagamore Hills, Ohio over the Cuyahoga Valley National Park.
Douglas L. Wright, of Indianapolis, was sentenced to 11 ½ years in prison followed by a lifetime of supervised release.Brandon L. Baxter, of Lakewood, Ohio, was sentenced to nine years and nine months in prison followed by a lifetime of supervised release.
Connor C. Stevens, of Berea, Ohio, was sentenced to eight years and one month in prison followed by a lifetime of supervised release.
Anthony M. Hayne, 35, of Cleveland, was sentenced to six years in prison followed by a lifetime of supervised release.
Those four men pleaded guilty last year to conspiracy to use weapons of mass destruction, attempted use of weapons of mass destruction and malicious use of an explosive device to destroy property used in interstate commerce.
Hayne, Wright, Baxter, Stevens and Stafford were arrested on April 30.
According to court documents, Wright, Baxter, Hayne, Stevens and Stafford were self-proclaimed anarchists who formed into a small group and considered a series of evolving plots over several months.
The initial plot involved the use of smoke grenades to distract law enforcement in order for the co-conspirators to topple financial institution signs atop high rise buildings in downtown Cleveland, according to the complaint.
The plot later developed to the utilization of explosive materials. The defendants conspired to obtain C-4 explosives contained in two improvised explosive devices to be placed and remotely detonated, according to the complaint.
The defendants discussed various bridges and physical targets in and around the Cleveland, Ohio metropolitan area over the course of several months. The final plan resulted in the Route 82 Brecksville-Northfield High Level Bridge being the designated target.
The public was never in danger from the explosive devices, which were controlled by an undercover FBI employee. The defendants were closely monitored by law enforcement. The explosives that the defendants allegedly purchased and attempted to use were inoperable and posed no threat to the public.
This case is being prosecuted by Assistant U.S. Attorneys Duncan T. Brown, Justin E. Herdman and Thomas E. Getz following an investigation by the FBI and the FBI’s Joint Terrorism Task Force.
Agencies represented on the FBI’s Joint Terrorism Task Force include: Cuyahoga County Sheriff’s Office, Federal Air Marshal Service, Cleveland Police Department, Cleveland Heights Police Department, U.S. Secret Service, U.S. Coast Guard Investigative Service, Ohio Bureau of Criminal Investigation and Intelligence, Westlake Police Department, U.S. Diplomatic Security Service, Immigration and Customs Enforcement, Customs and Border Protection, RTA Police, Ohio State Highway Patrol, Transportation Security Administration, Alcohol, Tobacco and Firearms, Shaker Heights Police Department, North Olmstead Police Department, US Postal Inspectors, and the Defense Criminal Investigative Service. Assistance in this case was also provided by the U.S. National Park Service Park Rangers, Sagamore Hills Police Department and Brecksville Police Department, and the Summit County Sheriff’s Office.
Citizen of Brazil Who Twice Reentered U.S. After Deportation Sentenced to 15 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that CHRISTIANO HENRIQUE De PAULA, also known as “Christiano DePaula,” “Christian DePaula,” and “Christiano Decamargo,” 27, a citizen of Brazil, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 15 months of imprisonment for illegally reentering the U.S. after he was deported.
According to court documents and statements made in court, De PAULA was deported from the U.S. to his native Brazil in May 2008 after his conviction in New Jersey for aggravated assault with a weapon. He illegally returned to the U.S. and, on August 25, 2008, pleaded guilty in U.S. District Court in the Southern District of Texas to illegal entry of a removed alien. De PAULA was sentenced to 20 days of imprisonment and, in October 2008, was deported to Brazil.
On June 27, 2012, De PAULA was arrested by Bridgeport Police after he was involved in an altercation with another individual at a local restaurant. De PAULA had been using the name “Christiano Decamargo.”
De PAULA has been detained since his arrest. On March 6, 2013, he pleaded guilty to one count of illegal reentry of a removed alien.
This matter was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations, with the assistance of the Bridgeport Police Department. The case was prosecuted by Assistant United States Attorney Hal Chen.
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(203) 821-3722 [email protected]Church Rock, N.M., Man Sentenced to 162 Months in Federal Prison for Second Degree Murder ConvictionRead the Press Release
ALBUQUERQUE – Danny Dan Don Brown, 25, a member of the Navajo Nation who resides in Church Rock, N.M., was sentenced this afternoon to 162 months in federal prison followed by two years of supervised release for his second degree murder conviction. He also was ordered to pay restitution in the amount of $1200 to cover the cost of the victim’s funeral and related expenses.
Brown and his co-defendant, Melvyn Lee Morgan, 29, a member of the Navajo Nation who resides in Gallup, N.M., were arrested on Dec. 27, 2011, based on a criminal complaint charging them with the Dec. 3, 2011 murder of Robert L. Smith, also a member of the Navajo Nation. According to the criminal complaint filed in the case, the murder was committed in Church Rock, which is within the Navajo Indian Reservation. Brown and Morgan, who have been in federal custody since their arrests, were indicted on Jan. 24, 2012, and charged with second degree murder.
According to court records, late on the night of Dec. 3, 2011, Brown, Morgan and the victim were involved in a fight after drinking alcohol. During the fight, Brown and Morgan repeatedly kicked and punched the victim, who died as a result of injuries he sustained. Brown entered a guilty plea to the indictment in March 2013.
Morgan has entered a not guilty plea to the indictment and is scheduled for trial on July 8, 2013. The charges in the indictment as to Morgan are only accusations and he is presumed innocent unless proven guilty.
This case was investigated by the Gallup office of the FBI and the Crownpoint Office of the Navajo Nation Division of Public Safety with assistance from the McKinley County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Paul H. Spiers.
California Woman Charged with Aiding and Assisting the Preparation of False Tax Returns and Identity FraudRead the Press Release
Lanisha D. Applewhite of Richmond, Calif., was indicted by a federal grand jury in San Francisco, for aiding and assisting the preparation and presentation of false and fraudulent federal income tax returns as well as identity fraud, the Justice Department and Internal Revenue Service (IRS) announced today.
According to the indictment, from 2008 through 2011, Applewhite, a return preparer, aided and assisted in the preparation and presentation of false and fraudulent federal income tax returns containing claims for deductions and credits to which her clients were not entitled. In addition, six counts allege that Applewhite used individuals’ Social Security numbers without lawful authority in preparing false federal income tax returns.
The maximum penalty for aiding and assisting the preparation of false claims is three years in prison and a fine of $250,000 for each count of conviction. The maximum penalty for each count of identity fraud is 15 years in prison and a fine of $250,000.
An indictment is merely an accusation, and the defendant is presumed innocent until proven guilty.
This case is being investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Charles O’Reilly, Erin Mellen and Sonia Owens of the Justice Department’s Tax Division are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Buffalo man pleads guilty to illegal selling identification documentsRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Jorge Garcia, 37, of Buffalo, N.Y., pleaded guilty before U.S. District Court Judge Richard J. Arcara, to possession with intent to use or transfer unlawfully five or more identification documents. The charge carries a maximum penalty of 15 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the case, stated that Garcia sold nine sets of identification documents in exchange for $6,300 in cash. The documents consisted of Puerto Rican birth certificates, New York state birth certificates, Michigan state birth certificates and U.S. Social Security Cards. The defendant was led to believe that the nine sets of authentic identification documents would be used to allow illegal immigrants to remain and work in the United States unlawfully.
Sentencing is scheduled for September 19, at 1:00 p.m. before Judge Arcara.
The plea is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-In-Charge James C. Spero.Buffalo Man Arrested on Drug ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Keith Goss, 44, of Buffalo, N.Y., was arrested and charged by criminal complaint with conspiracy and possession with intent to distribute 100 kilograms or more of marijuana. The charges carry a minimum penalty of 10 years in prison, a maximum of life and a $10,000,000 fine.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who is handling the case, stated that according to the complaint, on June 12, 2013, the defendant attempted to take possession of a crate which was to be delivered to an address on Fillmore Avenue in Buffalo after being shipped from Tucson, Arizona. The crate contained 315 pounds of marijuana valued in excess of $250,000. The complaint further states that law enforcement officers intercepted the crate of marijuana before it was delivered to the Fillmore Avenue address where the defendant was awaiting its arrival.
Goss made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy. The defendant is being held pending a detention hearing on June 19, 2013 at 2:00 p.m.The criminal complaint is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division and the Tonawanda Police Department, under the direction of Anthony Palombo, with the assistance of the DEA Office in Nogales, Arizona.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until proven guilty in a court of law.Benjamin Bennett Pleads Guilty to Charges Related to Filing Fraudulent Claims for Oil Spill CompensationRead the Press Release
BENJAMIN BENNETT, age 23, a resident of New Orleans, Louisiana, pled guilty in federal court today before U. S. District Judge Nannette Jolivette Brown to one count of conspiracy to commit mail fraud relating to a fraudulent application he made or caused to be made to the Gulf Coast Claims Facility (GCCF) for financial assistance during the aftermath of the Deepwater Horizon oil spill, announced U. S. Attorney Dana J. Boente.
According to court documents, the GCCF made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion. The GCCF required individuals to verify loss of income. On October 12, 2010, BENNETT applied for disaster assistance funds, representing that he was operating a commercial fishing business before the oil spill. However, BENNETT had never worked as a commercial fisherman and he submitted or caused to be submitted false documentation to establish his false earnings. Based on BENNETT’S fraudulent application, BENNETT received approximately $43,400 to which he was not entitled.
BENNETT faces a maximum term of imprisonment of five years, a $250,000 fine, and three years of supervised release following imprisonment. Sentencing is set for October 3, 2013.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
The case was investigated by the U.S. Postal Inspection Service and the U. S. Secret Service, and prosecuted by Assistant U. S. Attorney Julia K. Evans.
(Download Factual Basis )
Beclabito, N.M., Woman Pleads Guilty to Second Degree Murder ChargeRead the Press Release
ALBUQUERQUE – Krisohn Adakai, 21, an enrolled member of the Navajo Nation who resides in Beclabito, N.M., pleaded guilty this morning to a second degree murder charge under an agreement with the U.S. Attorney’s Office. Under the terms of the plea agreement, Adakai will be sentenced to 11 years in federal prison followed by a term of supervised release to be determined by the court.
Adakai was arrested in July 2012, and charged by criminal complaint with the murder of Crystal Tom, a 26 year-old Navajo woman. According to the criminal complaint, the murder occurred on July 28, 2012, at Adakai’s home in Beclabito, which is located on the Navajo Reservation. Adakai and the victim got into a fight while drinking alcohol together. During the fight, Adakai repeatedly punched and stabbed the victim, who died as a result of the injuries she sustained. Adakai then fell asleep and awoke to find the victim’s unresponsive body. Adakai attempted to conceal her crime by disposing of the body, the alcohol bottles and other evidence of the murder in a remote area on the Navajo Indian Reservation. When confronted by law enforcement authorities on July 30, 2012, Adakai admitted committing the murder and led officers to the victim’s body and other evidence.
During today’s plea hearing, Adakai admitted that the United States would be able to prove beyond a reasonable doubt that she murdered a Navajo woman on July 28, 2013, in San Juan County, within the Navajo Indian Reservation.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and is being prosecuted by Assistant U.S. Attorney Presiliano A. Torrez.
Baldwinsville Man Enters Guilty Plea to False Tax ReturnRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York announces that CHRISTOPHER BEVANS, (38 of Baldwinsville, NY) entered a guilty plea to the felony offense of subscribing a false income tax return, in violation of Title 26, United States Code, Section 7206(1). The defendant is facing a statutory maximum sentence of 3 years imprisonment, a maximum fine of $250,000.00 and restitution to the IRS in the amount of $75,725. BEVANS is scheduled to be sentenced on October 9, 2013, before the Honorable Mae D’Agostino, in Albany, New York.
During the plea hearing on June 13, 2013, BEVANS admitted that in 2007 and 2008 he was an employee of Velocitel, Inc., a telecommunications company, and during that employment he earned additional income from another Velocitel employee and Velocitel subcontractor. This income was in addition to the wages disclosed on his W-2 forms. The additional income paid to CHRISTOPHER BEVANS for 2007 was $59,600, and for 2008 was $162,550, for a total of $222,150. BEVANS failed to include the $59,600 as income on his 2007 personal federal tax return and $162,550 as income on his 2008 personal federal tax return. Each of these returns were made and signed by him under penalty of perjury. BEVANS knew these tax returns were false because each substantially under reported his income and tax liability for that year. The foregoing resulted in a tax deficiency to the IRS totaling $75,725.
This prosecution resulted from an investigation conducted by the Internal Revenue Service, Criminal Investigations and the Federal Bureau of Investigation, Syracuse, N.Y. The case was prosecuted by Assistant United States Attorney Tamara B. Thomson. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315) 448-0672.
Amarillo Man Sentenced to A Total of 35 Years in Federal Prison for Committing Armed Bank Robbery and Other Firearms OffensesRead the Press Release
AMARILLO, Texas — Donald Joseph West, 49, of Amarillo, Texas, an armed career criminal, was sentenced today by U.S. District Judge Mary Lou Robinson to a total of 35 years in federal prison following his conviction at trial in March 2013 on all counts of a superseding indictment charging felony offenses in connection with the November 5, 2012, armed robbery of FirstBank Southwest in Amarillo. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
U.S. Attorney Saldaña said, “In short, Donald West, a violent career criminal, presented a clear danger to the Amarillo community and, in particular, to the brave and dedicated law enforcement officers who serve it. Because of their extraordinary work on this case, all can rest easier tonight knowing that he will spend the next 35 years in prison.”
Diego G. Rodriguez, Special Agent in Charge of the FBI Dallas Field Division, said, “Combined efforts of the public’s assistance and a joint investigation by the Amarillo Police Department, Potter and Randall County Sheriff’s Offices and the FBI led to Donald West’s successful conviction and subsequent sentencing that reflects law enforcement’s commitment to protecting communities from dangerous career criminals.”
Donald West was convicted on one count of aggravated bank robbery, one count of being a felon in possession of a firearm and one count of using a firearm during and in relation to a crime of violence (the bank robbery). During the same trial, his nephew, David West, 43, who remains on bond, was convicted on one count of the unlawful sale and disposition of a firearm. His sentencing is set for June 26, 2013.
The government presented evidence at trial that on Monday, November 5, 2012, Donald West, wearing a mask, entered the FirstBank Southwest, located at 5701 Southwest 34th Street, in Amarillo, pointed a gun at a teller and demanded cash. The teller placed money in a bag and Donald West left the bank. He was arrested the next evening by officers with the Amarillo Police Department and special agents with the FBI and has been in custody since that time.
The government presented further evidence that during the robbery, Donald West used a semiautomatic pistol. When he was arrested, a firearm, that was given to him by David West shortly before the robbery, was recovered. Donald West is a convicted felon, having been convicted 1) in Randall County, Texas, of committing aggravated robbery with a deadly weapon in 1988; 2) in U.S. District Court for the Northern District of Texas, with conspiracy to commit bank robbery and bank robbery in 1987; and 3) in Randall County for evading detention in 2011. The government presented further evidence that David West knowingly gave the 9mm caliber pistol to his uncle, well knowing that he was a convicted felon.
The investigation was conducted by the FBI, the Amarillo Police Department and the Potter and Randall County Sheriff’s Offices. Assistant U.S. Attorneys Jeff Haag, Justin Cunningham and Christy Drake prosecuted.
Allen County, Kentucky, Residents Charged with Conspiring to Sell Hydrocodone Stolen from A Scottsville, Kentucky, PharmacyRead the Press Release
– Former pharmacy employee charged in the conspiracy
BOWLING GREEN, Ky. – Allen County residents were charged this week, by a federal grand jury in Bowling Green, Kentucky, with a conspiracy to distribute the pain killer, Hydrocodone, that was stolen from a pharmacy by a former employee, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the seven count federal indictment, beginning in May 2012, and continuing to October 2012, in Allen County, Kentucky, Lynn Harper Denton, age 46, a former employee of Stovall’s Prescription Shop, and Katherine Virginia Rookstool, age 34, conspired to sell over $5,000 of stolen Hydrocodone that had not been made available to consumers for retail purchase. This is a violation of 18 USC § 670 (theft of medical products) and is the first such prosecution in the Western District of Kentucky.
Further, Denton, Rookstool, and Jeffrey Clay Stinson, age 47, were charged with conspiracy to possess with intent to distribute Hydrocodone. Additionally, Stinson faces four charges of knowingly possessing and distributing hydrocodone.
If convicted at trial, Denton could be sentenced to no more than 30 years in prison, a $750,000 fine, and a period of five years of supervised release. Defendant Rookstool could be sentenced to no more than 25 years in prison, a $750,000 fine, and a period of five years of supervised release. Defendant Stinson could be sentenced to 60 years in prison, a $3,000,000 fine and a period of no less than four years of supervised release.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the U.S. Food and Drug Administration's Office of Criminal Investigations, Owensboro domicile, the Allen County Sheriff’s Department, and the Scottsville, Kentucky Police Department.
Additional Charges against Springfield, Kirbyville Men Indicted for K2 ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., man and two Kirbyville, Mo., men have been indicted by a federal grand jury for their roles in a conspiracy to distribute synthetic marijuana, commonly referred to as K2.
Travis E. Butchee, also known as “Donkey,” 37, of Springfield, and Michael J. Saguto, 42, and Christian L. Turner, 45, both of Kirbyville, were charged in a six-count indictment returned by a federal grand jury in Springfield on Wednesday, June 12, 2013. The indictment replaces a federal criminal complaint that was filed against Butchee and Saguto on May 17, 2013, adding Turner as a co-defendant and additional charges.
Butchee opened The Man Cave, a retail business at 1927 S.Glenstone in Springfield, in February 2013. Butchee and Saguto are the owners of Southern Spice, LLC and Saguto is the owner of Blues Away, a head shop and novelty store in Memphis, Tenn. Turner was employed by Saguto at Blues Away.
The federal indictment alleges that Butchee, Saguto and Turner participated in a mail fraud conspiracy from March 1, 2011 to May 16, 2013. They allegedly devised a scheme to defraud the Food and Drug Administration and to defraud the public in order to profit from false claims that synthetic marijuana products (such as Blazed, Red Eyed, Donkey Punch, Jolly Grape Giant, South of the Tracks, Baby Face, Scarface, Hillbilly Hay and others) – which were mailed or delivered by commercial carriers – were “incense” or “potpourri” and “not for human consumption.” In reality, the indictment says, these substances were synthetic cannabinoids that contained controlled substances and were intended for human consumption as a drug.
The indictment also alleges that Butchee, Saguto and Turner participated in a conspiracy to distribute a controlled substance. They allegedly manufactured and distributed synthetic cannabinoids using ingredients obtained through the mail from China and Thailand.
Butchee and Saguto are also charged with three counts of maintaining a place for the purpose of unlawfully storing and distributing a controlled substance. They allegedly used residences in Kirbyville, Merriam Woods, Mo., and Springfield to store and distribute synthetic marijuana.
Turner is also charged with being a felon in possession of firearms. Turner, having been convicted of a felony, allegedly possessed a Ruger .22-caliber rifle, a Marlin 30-30 caliber rifle, a Rossi .243-caliber rifle with an interchangeable 20-gauge barrel, a Remington 12-gauge shotgun and a Remington .270-caliber rifle.
The indictment also contains a forfeiture allegation, which would require Butchee, Saguto and Turner to forfeit to the government any property obtained from the proceeds of the alleged mail fraud and drug-trafficking conspiracies, including a money judgment of $280,490 as well as $31,580 that was seized by law enforcement officers, a Hummer H2 and several firearms.
According to an affidavit filed in support of the original criminal complaint, Southern Spice manufactured synthetic cannabinoids under various labels, which was distributed to several businesses for resale. Search warrants were executed from January to December 2012 at several businesses – including Doobies (at two Springfield locations), Zak’s Place in Springfield, Beer and Bottle liquor store in Hollister, Mo., and Big E’s in Lebanon, Mo. – at which law enforcement officers seized hundreds of packages of K2 manufactured by Southern Spice, which were being sold by the businesses.
According to the affidavit, a total of $169,859 in checks from various head shops, tattoo parlors and other businesses were deposited into the Southern Spice bank account between April 10 and Nov. 20, 2012. Money was wired by Southern Spice to accounts in Hong Kong and China. An analysis of transactions from this bank account, the affidavit says, also showed purchases of other herbal products that are typically used as the plant ingredient in K2.
The affidavit cites four undercover purchases of K2 from The Man Cave by law enforcement officers in April and May 2013.
On May 16, 2013 law enforcement officers executed search warrants at the residences of Saguto and Butchee, as well as at a Merriam Woods residence owned by Butchee. At Saguto’s residence, officers seized the components of a synthetic cannabinoid manufacturing laboratory and a significant amount of cash contained in an ammo box. At the Merriam Woods residence, officers seized three five-gallon buckets containing a plant substance identified as synthetic cannabinoids as well as packages filled with a substance believed to be synthetic cannabinoids, which were labeled Hillbilly Hay.
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 Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the U.S. Postal Inspection Service, IRS-Criminal Investigation, the Missouri State Highway Patrol, COMET (Combined Ozarks Multi-jurisdictional Enforcement Team) and the Springfield, Mo., Police Department.
Synthetic Designer Drugs
Over the past several years, smokable herbal blends marketed as being “legal” and providing a marijuana-like high have become increasingly popular, particularly among teens and young adults, because they are easily available and, in many cases, they are more potent and dangerous than marijuana. These products consist of plant material that has been coated with dangerous psychoactive compounds that mimic THC, the active ingredient in marijuana. These synthetic cannabinoids are sold at a variety of retail outlets, in head shops and over the Internet. Brands such as K2, Spice, Blaze, and Red X Dawn are labeled as incense to mask their intended purpose. However, they have not been approved by the Food and Drug Administration (FDA) for human consumption or for medical use, and there is no oversight of the manufacturing process.
While many of the designer drugs being marketed today are not specifically prohibited in the Controlled Substances Act, the Controlled Substance Analogue Enforcement Act allows these drugs to be treated as controlled substances if they are proven to be chemically and/or pharmacologically similar to a Schedule I or Schedule II controlled substance. This analogue provision specifically exists to combat these new and emerging designer drugs.Abilene Resident Sentenced to Nearly Four Years in Federal Prison for Failing to Register as A Sex OffenderRead the Press Release
ABILENE, Texas — Robert Jade Lopez-Parker, 40, most recently a resident of Abilene, Texas, was sentenced Wednesday by U.S. District Judge Jorge A. Solis to 46 months in federal prison for failing to register as a sex offender, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
A federal jury in Abilene convicted Lopez-Parker in January 2013 on a one-count indictment charging that he failed to register as a sex offender.
The U.S. Marshals Service received information that Lopez-Parker, a sex offender from Washington and Oregon, was living in Abilene. He was arrested on July 6, 2012, on a warrant out of Scurry County, Texas, and has been in custody since that time.
According to evidence presented at trial, Lopez-Parker lived in the Abilene area at least three months prior to his arrest, and he never registered in Texas as a sex offender, as required by the Sex Offender Registration and Notification Act. He was required to register as a sex offender because he had been convicted of a sex offense, Child Molestation in the Third Degree in Clark County Washington, for which he was sentenced on January 8, 2002. He last registered in Oregon on January 30, 2012.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by the U.S. Marshals Service, the Texas Department of Public Safety, the Abilene Police Department, the Taylor County Sheriff’s Office, the Callahan County Sheriff’s Office, and the Oregon State Police. Assistant U.S. Attorney Steven M. Sucsy and Deputy Criminal Chief Assistant U.S. Attorney Denise Williams prosecuted.
10th Street Gang Member Sentenced for RICO ConspiracyRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Hector Rodriguez, 25, of Buffalo, N.Y., who was convicted of Racketeering Influenced Corrupt Organizations (RICO) Conspiracy, was sentenced to 86 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joseph M. Tripi, who handled the case, stated that the defendant was a member of the 10th Street Gang who was involved in drug dealing and firearms possession as a part of his participation in the gang. On May 22, 2006, Rodriguez learned that rival drug dealers were making what he believed to be a substantial amount of money selling crack cocaine in the turf controlled by the 10th Street Gang. The defendant dressed in old and dirty clothes and, pretending to be a crack cocaine user, purchased crack cocaine from the rival drug dealers who were selling in the 10th Street Gang's turf. Following the purchase, Rodriguez returned to a 10th Street Gang drug house and told fellow gang members, adding that he did not see any guns in the possession of the rival drug dealers. Armed 10th Street gang members then went to the location and shot the rival drug dealers using an AK-47 in an effort to force the rival drug dealers out of the neighborhood.
In 2010, the defendant was indicted along with 34 other 10th Street Gang members or associates. Eighteen defendants have been convicted to date.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel, along with the New York State Police, under the direction of Acting Major Craig Hainsworth, the Buffalo Police Department, under Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under Agent Frank J. Christiano, Resident Agent in Charge.
12 June 2013
Wood County Woman Sentenced for Drug Trafficking ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A37-year-old Mineola, Texas woman has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Denise Marie Meeks pleaded guilty on Feb. 6, 2013, to possession with intent to distribute methamphetamine and possession of a firearm during a drug trafficking crime and was sentenced to 144 months in federal prison today by U.S. District Judge Michael H. Schneider. The court also imposed a $2,000 forfeiture judgment against Meeks.
According to information presented in court, up until July 19, 2012, Meeks possessed and distributed more than 20 grams of methamphetamine in East Texas. Meeks also admitted that she carried a firearm during, and in relation to, her drug trafficking activities. A federal grand jury returned an indictment on Dec. 6, 2012, charging Meeks with federal violations.
This case was investigated by the Drug Enforcement Administration and the Canton Police Department and prosecuted by Assistant U.S. Attorney Bill Baldwin.
Wilmington Man Sentenced for Armed Robbery – Victor McClainRead the Press Release
RALEIGH- United States Attorney Thomas G. Walker announced that in federal court yesterday VICTOR MCCLAIN, 61, was sentenced by Chief United States District Chief Judge James C. Dever to 235 months imprisonment, 5 years supervised release, and was ordered to pay a $200.00 special assessment. MCCLAIN was sentenced pursuant to the Armed Career Criminal Act.
On January 9, 2013, MCCLAIN pled guilty to Robbery of a Business Engaged in Interstate Commerce and Possession of a Firearm by a Felon for an offense that occurred on December 7, 2011.
On December 7, 2011, MCCLAIN and his co-defendant, Aaron Monroe robbed the Game Giant in Wilmington, North Carolina. After pretending to shop for various items, the men brandished firearms and stole money from the store and three individuals present in the store. After stealing the money, MCCLAIN and his co-defendant barricaded the three victims into the bathroom to facilitate their escape. One of the men managed to free himself from the bathroom and ran out of the store where an officer with the Wilmington Police Department was nearby. The victim yelled to the officer that a robbery had taken place and pointed out the defendants who were leaving in a car.
Officers with the Wilmington Police Department attempted to stop the vehicle in which the defendants were traveling, however, the defendants refused to stop. During the chase, MCCLAIN threw the handguns used in the course of the robbery out of the window. When the defendants came to a stop, MCCLAIN attempted to flee the area on foot, however, he was apprehended very quickly.
Investigation of this case was conducted by the Wilmington Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Special Assistant United States Attorney Charity Wilson is serving as prosecutor for the government. Ms. Wilson is a prosecutor with the New Hanover County District Attorney's Office. District Attorney Ben David has assigned her to the United States Attorney's Office to prosecute federal Project Safe Neighborhood cases and other violent crime cases.
Wetzel County Heroin Suppliers IndictedRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
Pipeline from Pittsburgh Disrupted by Federal Indictment
WHEELING, WV – A Pittsburgh man who was supplying large amounts of heroin to Wetzel County has been indicted by a federal grand jury, according to United States Attorney William Ihlenfeld, II.
Damon Rashad Reese, also known as “Mac”, age 25, of Pittsburgh, Pennsylvania, has been charged with “Conspiracy to Distribute More than 100 Grams of Heroin” between January and May of 2013. Reese is also charged with two counts of “Use of a Telephone to Facilitate the Distribution of Heroin.”
In addition to Reese, two others were indicted as part of the same investigation. Kimberly Lynn Nelson, age 30, and Matthew Scott Hedrick, age 32, both of New Martinsville, also face the felony charge of “Conspiracy to Distribute More than 100 Grams of Heroin”, along with a separate count of “Aiding & Abetting the Possession with Intent to Distribute Heroin.”
It is alleged that Nelson and Hedrick traveled regularly to Pittsburgh to acquire heroin from
Reese and then returned to Wetzel County to redistribute the drug.Each of the defendants face a sentence of 5 to 40 years in prison. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the criminal history, if any, of each defendant.
The case will be prosecuted by Assistant United States Attorney Randolph J. Bernard and was investigated by the West Virginia State Police - Bureau of Criminal Investigations.
Reese, Nelson, and Hedrick are presumed innocent until and unless proven guilty.