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7 June 2013
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Dayman J. Olivares, 34, of Bremen, Indiana, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of possession with the intent to distribute more than 500 grams of cocaine. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea. Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 9/9/2013 9:00 AM before District Judge Robert L. Miller Jr. This charge was filed as a result of an investigation by the Drug Enforcement Agency.This case is being prosecuted by Assistant United States Attorney William Grimmer.
Juan Gallardo, 29, of LaPorte, Indiana, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of conspiracy to manufacture, distribute, and possess with intent to distribute controlled substances. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea. Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 9/5/2013 1:45 PM before District Judge Jon E. DeGuilio. This charge was filed as a result of an investigation by the Drug Enforcement Agency.This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
Jarvis Ward, 20, of South Bend, Indiana, pled guilty before Magistrate Judge Robert L. Miller, Jr. to the felony offense of racketeering and brandishing a firearm during a crime of violence and aiding and abetting.Magistrate Miller is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 9/18/2013 9:00 AM before District Judge Robert L. Miller Jr. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation and State County Municipal Authorities.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
Germaine B Hadley, 31, of Elkhart, Indiana, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of possession of a firearm as a convicted felon. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 9/9/2013 9:00 AM before District Judge Robert L. Miller Jr. This charge was filed as a result of an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
Harold Leroy Snyder, III, 20, of Bremen, Indiana, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of obstructing the mail.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 9/11/2013 2:00 PM before Magistrate Judge Christopher A. Nuechterlein This charge was filed as a result of an investigation by the Office of the Inspector General.This case is being prosecuted by Assistant United States Attorney Jesse Barrett.
Joseph Bradshaw, Jr, 31, of Warsaw, Indiana, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of possessing a firearm in and affecting interstate or foreign commerce. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 9/10/2013 1:00 PM before District Judge Robert L. Miller Jr. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorney Frank Shaffer.
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.
DISPOSITIONS:
Larry N. Harris, Jr, 25, of South Bend, Indiana, was sentenced by District Judge Jon E. DeGuilio to 15 months imprisonment with 3 years supervised release after pleading guilty to the felony offense of possessing a firearm as a convicted felon.Harris was previously convicted of firearms violation. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Mark Weaver, 40, of Niles, Michigan, was sentenced by District Judge Jon E. DeGuilio to time served with 2 years supervised release and 18 months home detention after pleading guilty to the felony offense of making false statements during the acquisition of firearms.According to documents filed in this case, Weaver purchased over sixty firearms (including machine guns) while making false statements.Weaver also falsely presented himself as a police officer while purchasing firearms.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITION:
Kenneth Myers, 21, of Monticello, Indiana, was sentenced by Senior District Judge Rudy Lozano to 12 months and 1 day imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.According to documents filed by the government in this case, Myers took a pistol and a shotgun from his father’s firearms collection and sold them to federally licensed firearms dealers. Myers has a prior felony conviction for a theft. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Dean Lanter.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS:
Jennifer Santiago, 33, of Milford, Indiana, was sentenced by District Judge Theresa L. Springmann to serve 135 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of knowingly or intentionally distributing cocaine and knowingly selling a firearm to a convicted felon.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Kosciusko County Task Force.This case was prosecuted by Assistant United States Attorney Anthony Gellar.
Kristen A. Hitzfield, 23, of Fort Wayne, Indiana, was sentenced by District Judge Theresa L. Springmann to serve 12 months and 1 day with 2 years of supervised release after pleading guilty to the felony offense of making a false statement regarding the true purchaser of a firearm.According to documents filed in this case, Hitzfield purchased three 9mm firearms for actual use by other individuals.One of the weapons was utilized in a robbery.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Tina Nommay.
Wanblee Man Indicted for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wanblee, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Lionel Between Lodges, age 25, was indicted by a federal grand jury on May 15, 2013. He appeared before US Magistrate Judge Mark A. Moreno on May 31, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 10 years of custody; a $250,000 fine, or both; 3 years of supervised release; a $100 special assessment on each count; and restitution.
The charges relate to the alleged assault of an Eagle Butte man in March of 2010. The charges are merely accusations, and Between Lodges is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Between Lodges was released on bond pending trial. A trial date has been set for July 23, 2013.
Two-Time Drug Dealer Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. - Charles Pierre Watson, 29, of Bay Minette, was sentenced this morning in federal court on his second federal drug conviction. Watson pled guilty to six counts of possession with intent to distribute of crack cocaine, and this morning, Judge Kristi Dubose imposed a sentence of 54 months imprisonment. Watson was also ordered to serve a six-year term of supervised release, which will commence at the completion of his prison sentence. No fine was imposed, but Watson was ordered to pay $600 in special mandatory assessments.
Judge Dubose ordered that Watson’s new sentence would run consecutive to a term of 24 months he was serving on a revocation of the supervised term that followed his original conviction. Court documents showed that Watson was convicted in 2006 of possession with intent to distribute crack cocaine, and in 2007, he was ordered to serve 115 months imprisonment. His prison sentenced was reduced in 2008 to 88 months as a result of the amendment to the federal sentencing guidelines and again in 2009, down to 54 months, as a result of his cooperation with authorities. His supervised release term, which was imposed to follow his release from imprisonment, was revoked in 2011, and he was ordered to serve an additional 24 months in custody for violation of the conditions imposed in connection with his supervision during that time.
This case was investigated by the Bay Minette Police Department and the Baldwin County Sheriff’s Office. It was prosecuted by Gloria Bedwell in the United States Attorney’s Office in Mobile.
Two Operators of A Multi-State Sex Trafficking Enterprise That Spanned Eastern Seaboard Sentenced to 239 and 300 Months in PrisonRead the Press Release
ALEXANDRIA, Va. – Edwin Barcus, Jr., age 27 and Joshua Dumas, also known as “Hitman,” age 21, both of Atlanta, Georgia, were sentenced today for conducting a Child Exploitation Enterprise. Barcus was sentenced to 300 months in prison, followed by 5 years of supervised release. Dumas was sentenced to 239 months in prison, followed by 5 years of supervised release. Both defendants were also ordered to pay $ 177,050.23 in restitution.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Kenneth T. Cuccinelli, Attorney General of Virginia, Lieutenant Colonel Edwin C. Roessler, Jr., Acting Chief of the Fairfax County Police Department, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office made the announcement after the two defendants were sentenced by United States District Judges Leonie M. Brinkema and Gerald Bruce Lee.
“These two defendants engaged in some of the most deplorable conduct imaginable: they abused, assaulted, and sexually exploited young girls for commercial profit up and down the Eastern seaboard,” said U.S. Attorney Neil H. MacBride. “Given these heinous acts, my office and our law enforcement partners aggressively pursued Barcus and Dumas and charged them with conducting a ‘Child Exploitation Enterprise’ – a forceful statute – that mandates they each serve at least 20 years in prison. Today’s sentences cannot erase the devastation caused by these felons, but it does ensure that they can no longer hurt our daughters and sisters and serves as a clear warning to all those who contemplate engaging in this despicable crime.”
“These two men exploited adults and children alike, exposing them to a terrifying cycle of prostitution, violence, and intimidation,” said Attorney General Cuccinelli. “No one should have to endure the nightmare that these victims went through. It is our hope that today’s sentencing provides some peace to Barcus’s and Dumas’s victims as well as a warning to traffickers that we will find you and prosecute you to the fullest extent of the law.”
“Today’s sentences demonstrate the resolve of law enforcement to put an end to the exploitation of children and the trafficking of humans,” said Assistant Director in Charge Parlave. “We will continue to take steps to dismantle sex trafficking enterprises such as this one, and ensure that individuals such as Mr. Barcus and Mr. Dumas pay for their deplorable actions.”
Lt. Col. Edwin C. Roessler, Jr., Acting Chief of the Fairfax County Police Department, stated “Sex trafficking is a serious crime which will not be tolerated in Fairfax County and the Police Department will aggressively fight this crime to protect our great community. On behalf of our Department and community, we thank the United States Attorney for the Eastern District of Virginia for their partnership in combating sex trafficking with us in Fairfax County and nationally. This partnership will endure to continue making Fairfax County the safest place to live, work, and visit.”
Barcus pleaded guilty on March 11, 2013, and Dumas pleaded guilty on March 18, 2013. According to court documents, around 2007, Barcus founded an enterprise that prostituted at least seven minor girls and over twenty-three adults in at least seven states: Virginia, Georgia, Florida, South Carolina, North Carolina, Maryland, and Tennessee. Barcus and Dumas posted advertisements on Backpage.com and sex customers would meet the victims at hotels. The venture had a litany of rules that the victims had to follow, including a rule that all of the money belonged to Barcus, Dumas, and the other pimps. Barcus fractured the nose of one victim when she retained some of the money she had earned so that she could send it to the person caring for her infant child. Yet another victim objected to being transported to Virginia to be prostituted; Dumas told that victim that she was his and that she had no choice but to be prostituted in Virginia. Still another victim was struck by Dumas after she told him she wanted to go back to school.
To ensure compliance with their rules, Barcus and Dumas used force with some of the victims, drugged other victims with a substance known as “Molly,” and threatened still other victims. Barcus, Dumas, and their co-conspirators also carried firearms to prevent competing pimps from “stealing” their girls. Sometimes Barcus would contact prostitutes who were advertised on Backpage.com, attempt to recruit them, and if they refused, he would steal their money. The venture frequently relocated to ensure a steady supply of customers and to avoid detection by the police.
This case was investigated by the Federal Bureau of Investigation and the Fairfax County Police Department. Assistant United States Attorney Michael J. Frank and Virginia Assistant Attorney General and Special Assistant United States Attorney Marc J. Birnbaum prosecuted the case on behalf of the United States.
Barcus and Dumas were convicted of violating Title 18, United States Code, Section 2252A(g) “Child exploitation enterprises,” which imposes a mandatory minimum sentence of 20 years in prison for any who are convicted of being engaged in a child exploitation enterprise. A child exploitation enterprise includes instances where an individual sexually traffics juveniles on three or more occasions, with three or more coconspirators, and involves more than one victim.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Two Men Sentenced for Illegally Selling Identification DocumentsRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Mario Soto, 37, of Buffalo, N.Y., who was convicted of illegal sale of a United States social security card, was sentenced by U.S. District Judge Richard J. Arcara to 12 months’ probation. In addition, Angel Pagan, 50, of Rochester, N.Y., who was convicted of possession with intent to use or transfer unlawfully five or more identification documents, was sentenced also by Judge Arcara to 12 months in prison followed by 3 years supervised release.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled each of the cases, stated that Soto knowingly sold his own Puerto Rican birth certificate and his own social security card in exchange for $700 in cash. Pagan knowingly sold five sets of identification documents in exchange for $3,500 in cash. The identification documents consisted of four Puerto Rican birth certificates, one New York state birth certificate and five U.S. Social Security Cards. The defendants were led to believe that the authentic identification documents would be used to allow illegal immigrants to remain and work in the United States unlawfully.
The sentencings are the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and the Social Security Administration Office of Inspector General, under the direction of Special Agent in Charge Edward J. Ryan
Soto and Pagan are two of four defendants involved in unlawfully selling identification documents discovered during an investigation conducted the by the Department of Homeland Security. Defendant Xavier Gonzalez will be sentenced on June 13, 2013 and charges are pending against defendant Jorge Garcia.Two Men from Kenel Charged with AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that two Kenel, South Dakota men have been indicted by a federal grand jury.
Conrad C. Little Bear, age 53, and Lavell M. Little Bear, age 57, were indicted by a federal grand jury on May 15, 2013 for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury. They appeared before U.S. Magistrate Judge William D. Gerdes on June 6, 2013 and pled not guilty to the Indictment.
The maximum penalty on each count upon conviction is 10 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release; an additional 2 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusations, and the Defendants are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency and Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Both Defendants were released on bond pending trial. A trial date has not been set.
Two Men Arrested in Connection with the Theft of Gold Bars at Miami International AirportRead 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 J.D. Patterson, Director, Miami-Dade Police Department (MDPD), announced arrests of defendants Marco Cruz, 47, of Hialeah, and Ramses Llufrio, 38, of Hialeah. The charges arise from the May 14, 2013 theft of gold bars worth an approximate value of $625,000 from American Airlines Flight 902, a flight that arrived at Miami International Airport from Guayaquil, Ecuador. The defendants are scheduled for an initial appearance today at 1:30 p.m. before U.S. Magistrate Judge Jonathan Goodman.
The criminal complaint against Cruz charges him with, among other things, knowingly stealing gold bars which were part of a foreign shipment of property, in violation of Title 18, United States Code, Section 659. According to the allegations in the complaint, Flight 902 was a passenger flight that also contained cargo. After the flight arrived at Miami International Airport, airline employees removed the cargo, which included six boxes of gold bars. When airline employees noticed that one box of gold bars had gone missing, they notified law enforcement of the theft. Cruz, who works as a Fleet Service Clerk, had access to Flight 902 on the morning of its arrival. As part of its investigation into the theft, law enforcement interviewed employees at the airline, including Cruz. Although Cruz initially denied involvement in the theft, he gave law enforcement consent to search his home. In his home, law enforcement found one of the stolen bars and $200,000 in cash. Cruz later provided law enforcement with an additional $50,000 in cash.
The criminal complaint against Llufrio charges him with receiving one of the stolen gold bars, knowing that it had been stolen, in violation of Title 18, United States Code, Section 659. According to the allegations in the complaint, Llufrio owns a pawn shop located at 548 NW 57th Avenue, Miami, FL, 33126. The complaint alleges that Cruz delivered a total of five gold bars to Llufrio and received approximately $250,000 in cash as a result of these transactions. Llufrio allegedly accepted one of the bars immediately after Cruz informed him that the bar was “hot.”
If convicted, the defendants face a maximum of ten years imprisonment.
Mr. Ferrer commended investigative efforts of the FBI, the Miami-Dade Police Department, the City of Miami Police Department and the Coral Gables Police Department. This case is being handled by Assistant U.S. Attorney John Byrne.
A criminal complaint is merely an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Are Charged for $3.3 Mortgage-Fraud Involving Six Medina PropertiesRead the Press Release
A one-count federal information was filed against two people accused of taking part in a mortgage fraud scheme involving six luxury properties located in Medina, Ohio, Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced today.
The lenders lost a total of approximately $3,327,333 as a result of the scheme, according to the information. The information charges one count of conspiracy to commit bank fraud and wire fraud in a mortgage fraud scheme.
Those charged are: Joseph J. Beccia, age 60, of Parma; and, Alex F. Blackmore, age 49 of Bronx, New York.
The information charges that from in or around May 2006 through on or about June 20, 2007, Beccia and his company, Horizon Construction, built six luxury properties in Medina.
Although some of the properties were not fully completed, Beccia listed five of the six properties for sale at purchase prices that were equal to the true-market value of each property, starting on or about May 13, 2005. Specifically, Beccia listed the five properties for sale as follows: 2940 Sutton Lane, Medina for $599,000, on or about August 30, 2006; 4281 Fox Glen Drive, Medina for $395,000, on or about May 13, 2005; 4320 Perian Court, Medina for $399,000, on or about November 9, 2005; 3006 Sutton Lane, Medina for $529,500, on or about August 30, 2006; and, 4740 Lake Forest Trial, Medina for $925,000, on or about August 30, 2006.
Beccia incurred the cost of the construction of these homes without having known purchasers for these properties. Beccia was not able to sell these properties for an extended period of time and began to experience financial difficulties, according to the information.
Joseph Jones, an individual previously convicted in another mortgage fraud scheme, met Beccia through T.F., a real estate agent working in the area. T.F. advised Beccia that Jones had a system by which Jones could sell these properties so that Beccia could pay off his debts on the properties.
The information charges further that Jones and T.F. explained to Beccia that Jones had individuals willing to have properties purchase in their names. Jones and T.F., also, advised Beccia that in order to make Jones’ system work the properties would need to be removed from the market and re-listed at significantly higher purchase prices. Finally, Jones and T.F. advised Beccia that they would handle the interactions with the loan officers and securing the mortgage loans. All Beccia had to do was participate in the sale of the properties at the significantly inflated purchase prices and sign off on the loan documents as the seller, which Beccia agreed to do.
The information also charges that Beccia advised Jones and T.F. the amount of money he required from the sale of each the properties in order for him to repay the amounts he had borrowed to construct the luxury homes. Then, Jones determined the additional amount of money he wanted to receive over and above the amount of money required to be distributed to Beccia after the sale of each of the properties. Beccia and T.F. prepared new purchase agreements for each of the six properties with the inflated purchase price necessary to satisfy the amounts of money required.
Jones enlisted Blackmore to be a straw buyer/investor of some of Beccia’s properties. Jones advised Blackmore that if he would agree to allow these luxury homes to be purchased in his name, he would not have to provide any down payment funds because Jones would provide the down payment funds, and Jones would provide Blackmore with a significant amount of cash back after the closing of each property for allowing his name to be used as the purchaser. In addition, Blackmore signed the loan documents containing false information in order for him to qualify to purchase the properties, according to the information.
The information charges that T.F. re-listed five of the six properties for sale at the inflated purchase prices determined by Beccia and Jones as follows: 2940 Sutton Lane, Medina from $599,000 to $950,000; 4281 Fox Glen Drive, Medina from $395,000 to $647,000; 4320 Perian Court, Medina from $399,000 to $650,000; 3006 Sutton Lane, Medina from $529,500 to $920,000; and, 4740 Lake Forest Trial, Medina from $925,000 to $1,400,000.
Finally, the information charges that Jones enlisted the services of Marilyn Mannarino, an individual previously convicted in another mortgage fraud scheme, and Tower City on all six of Beccia’s properties. Tower City prepared the HUD-1s to make it appear to the financial institutions and mortgage lenders that Blackmore provided the down payments from his own personal funds, when in fact Jones provided the down payments. Beccia and Blackmore signed the HUD-1s knowing that Blackmore had not provided the down payments from his own personal funds.
Each of the properties for which defendants secured a mortgage loan went into foreclosure, resulting in a total loss of approximately $3,327,333, with Flagstar Bank incurring a loss of approximately $1,053,000, Lehman Brothers Bank incurring a loss of approximately $752,500, J.P. Morgan Chase incurring a loss of approximately $422,000, Suntrust Mortgage, Inc. incurring a loss of approximately $420,833, and American Brokers Conduit, a division of American Home Mortgage, Inc. incurring a loss of approximately $679,000.
If convicted, defendants’ sentences will be determined by the Court after review of factors unique to this case, including defendants’ prior criminal records, if any, each defendant’s role in the offense, and the characteristics of the violation. In all cases the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Mark S. Bennett, following an investigation by the Cleveland Offices of the Federal Bureau of Investigations and the United States Secret Service. An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Tonawanda Man Arrested on Drug ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Peter N. Militello, 32, of Tonawanda, N.Y., was arrested and charged by criminal complaint with possession with intent to distribute and distribution of heroin and crack cocaine. The charges carry a maximum penalty of 20 years in prison, a fine of $1,000,000 or both.
Assistant U.S. Attorney Eric M. Opanga, who is handling the case, stated that according to the complaint, between January 25, 2010 and February 25, 2010, the defendant sold heroin and crack cocaine on several occasions in the City of Buffalo. The complaint further alleges that on February 25, law enforcement officers searched a room at a hotel on Niagara Falls Boulevard in Amherst, N.Y. where Militello was staying. Inside, officers recovered crack cocaine and other drug paraphernalia.
The complaint is the result of an investigation on the part of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, and the Cheektowaga Police Department, under the direction of Chief David Zack.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Togiak Man sentenced to prison for wasting Walrus and firearms violationRead the Press Release
Anchorage, Alaska -U.S. Attorney Karen L. Loeffler announced today that a Togiak, Alaska, resident was sentenced yesterday for his actions arising from the illegal take of a walrus on Round Island in May 2011.
Sixty M. Arkanakyak, 49, was sentenced by U.S. District Court Judge Sharon L. Gleason to a term of 30 months prison and three years supervised release. According to Assistant U.S. Attorney Steven E. Skrocki, who prosecuted the case, Arkanakyak, along with co-defendant Jessie Anariak, were indicted in December 2012. The indictment alleged that on May 9, 2011, Arkanakyak and co-defendant Anariak departed from the village of Togiak, Alaska, in a Lund skiff. After leaving Togiak, the men beached the skiff on Round Island, an island located within the Walrus Islands State Game Sanctuary and accessible to the public only by permit.
The defendant admitted that while on the beach, Arkanakyak and Anariak approached a herd of walrus which were hauled out on the beach. Arkanakyak admitted that both men, armed with .12 gauge shotguns, began shooting walrus and wounded approximately five. The herd stampeded and four wounded walrus escaped into the sea. Arkanakyak and Anariak then corralled one walrus against a cliff on the beach and shot it in the head with their shotguns until it died. According to Arkanakyak, the men then hacked the tusks off the walrus’s skull and returned to their skiff without taking any of the meat or anything else from the dead walrus. Arkanakyak and Anariak then departed Round Island, taking the tusks with them and leaving the walrus on the beach to waste in violation of the Marine Mammal Protection Act.In February 2013, Arkanakyak plead guilty to illegally taking of a walrus from Round Island, as well as being a felon in possession of a firearm. Jessie Anariak’s case remains pending.
U.S. Fish & Wildlife Service Special Agent in Charge, Stanley Pruszenski stated, “The U.S. Fish and Wildlife Service takes the wasteful killing of walrus solely for their tusks very seriously. This sentence reflects the seriousness of the offense. We hope this sentence deters others from similar acts of wastefulness.”
Ms. Loeffler commends the U.S. Fish and Wildlife Service Office of Law Enforcement, Refuge Law Enforcement and Alaska Wildlife Troopers who investigated this case.Tampa Man Sentenced to More Than 4 Years in Prison for Stolen Identity Refund FraudRead the Press Release
Tampa, Florida - U.S. District Judge Virginia M. Hernandez Covington yesterday sentenced Nedal Faisal Ahmad to four years and three months in federal prison for mail fraud and aggravated identity theft. As part of his sentence, the court also entered a money judgment in the amount of $35,989.75, the proceeds of the charged criminal conduct. Ahmad pleaded guilty on March 8, 2013.
According to court documents, through his business and through other means, Ahmad negotiated U.S. Treasury checks and reloadable debit cards containing fraudulently obtained tax refunds. For instance, Ahmad "swiped" reloadable debit cards at his business (Al-Wafaa Trading), knowing that the funds on these cards were fraudulently obtained tax refunds, and kept a large portion of the cards’ value as a fee for processing the illegal funds. Ahmad processed over $60,000 of fraudulently obtained tax refunds through his business.
Ahmad was also involved in cashing fraudulent U.S. Treasury checks. The treasury checks were tax refunds that were fraudulently obtained by others. Beginning in October 2011, Ahmad began sending fraudulent Treasury checks via the U.S. mail and other delivery services to an individual in New York. Ahmad further instructed the individual to pay him sixty percent of the funds from the check, while the associate could keep the remaining forty percent. During the undercover operation, Ahmad sent the associate nine fraudulently obtained U.S. Treasury checks, totaling over $95,000 of stolen money from the U.S. Treasury.
This case was investigated by the United States Secret Service, Internal Revenue Service - Criminal Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Tampa Police Department. It was prosecuted by Assistant United States Attorneys Sara C. Sweeney and Amanda L. Riedel.
This case was prosecuted as part of Operation Rainmaker, a coordinated effort among the U.S. Attorney's Office for the Middle District of Florida and various federal and local law enforcement agencies, including the U.S. Secret Service, IRS, United States Postal Inspection Service, the Federal Bureau of Investigation, the Tampa Police Department, and the Hillsborough County Sheriff's Department to combat the filing of false tax returns in the Tampa Bay region.
Superseding Indictment Returned for Violations of the Federal Controlled Substances Act and Federal Gun Control ActRead the Press Release
GIE PRESTON, age 38; BURNELL ALLEN, age 33; SONNY ALLEN, age 40; LIONEL ALLEN, age 19; EUGENE ALLEN, age 30; EMANUEL CASAME, age 25; and MARK RAYFIELD, age 25, all residents of New Orleans, were charged yesterday in a 16-count superseding indictment unsealed today. Defendant PRESTON had previously been indicted in March 2012. The superseding indictment charges all defendants with conspiring to distribute and possess with the intent to distribute 280 grams or more of cocaine base “crack”. Defendants PRESTON, SONNY ALLEN, EUGENE ALLEN, BURNELL ALLEN, and LIONEL ALLEN were also charged with conspiracy to possess firearms in furtherance of drug trafficking crimes. In addition, PRESTON and LIONEL ALLEN were charged with possessing firearms in furtherance of drug crimes. Finally, PRESTON was charged with being a felon in possession of a firearm.
If convicted of the drug conspiracy, all defendants face a maximum penalty of 10 years to life imprisonment, a fine of $10,000,000 and a 5 year term of supervised release. Additionally, PRESTON faces an additional maximum penalty of 30 years to life imprisonment, a fine of $250,000, and a 3 year term of supervised release to be served consecutively to any other sentence imposed. Finally, LIONEL ALLEN faces an additional maximum penalty of 5 years to life imprisonment, a fine of $250,000, and a 3 year term of supervised release to be served consecutively to any other sentence imposed.
U.S. Attorney Boente reiterated that the superseding indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
(Download Superseding Indictment )
Sonny Lionel Crazymule Found Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that on June 5, 2013, in Billings, after a federal district court trial before U.S. District Judge Sam E. Haddon, SONNY LIONEL CRAZYMULE, a 34-year-old resident of Lame Deer, was found guilty of aiding and abetting assault resulting in serious bodily injury. Sentencing is set for September 13, 2013. He is currently detained.
At trial, the following evidence and testimony was presented to the jury.
On the evening of November 16, 2011, the victim was in a tent with a woman in the yard of his mother's home in Lame Deer, which is within the exterior boundaries. The victim heard someone approach the tent and tell him that another woman "S.S." wanted to talk to him. The victim had made plans to be with "S.S." that night, but the victim had not showed up. The victim tried to get out of the tent, and he did get the tent door unzipped, but he was immediately struck in the head with something. The victim did not see who struck him. He lost consciousness, almost immediately, and he did not wake up until later.
The victim's brother was sleeping in the mother's home. He woke up when he heard a commotion outside of the house, and he saw two figures walking away.
After the assault, CRAZYMULE went to the house of "X.X.". CRAZYMULE was covered in blood and told "X.X." that he thought he killed someone. CRAZYMULE then took a shower and changed his clothes.
A few days later on December 1, 2011, CRAZYMULE approached two friends of "Z.Z.'s" at the Cheyenne depot, the local convenience store. CRAZYMULE told them to tell "Z.Z." that "Z.Z." better take the blame for the assault because he is a juvenile.
CRAZYMULE was interviewed. He initially denied any involvement in the assault and refused to admit that he was even at the location of the assault. He then changed his story and admitted that he was present, but he portrayed "Z.Z." as the aggressor. CRAZYMULE claimed that he had to jump on the victim to protect him from "Z.Z.'s" blows. CRAZYMULE also said that "Z.Z." struck the victim with a folding chair three or four times and that during this time he was on the victim protecting him from the blows.
Z.Z." was interviewed. He admitted that he walked to the victim's tent with CRAZYMULE and "S.S.". He asserted that both he and CRAZYMULE assaulted the victim, but it was CRAZYMULE who "went in and beat [the victim]." "Z.Z." admits that he hit the victim with a chair.
Assistant U.S. Attorney Lori Harper Suek prosecuted the case for the United States.
CRAZYMULE faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Sioux Falls Man Indicted for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota man has been indicted by a federal grand jury for allegedly failing to register as a convicted sex offender in Pennington County on September 1, 2012.
Jeremy Jeunesse, a/k/a Jeremy Chasing Horse, a/k/a Jeremy Trudell, age 33, was indicted by a federal grand jury on February 20, 2013 for failure to register as a sex offender. Jeunesse appeared before U.S. Magistrate Judge Veronica L. Duffy on May 30, 2013 and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 10 years of imprisonment and a $250,000 fine. The charge is merely an accusation and Jeunesse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Jeunesse was remanded to the custody of the U.S. Marshal. A trial date has been set for August 6, 2013.
Rosebud Man Charged with Attempted Sexual Abuse of A Minor and Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota man has been indicted by a federal grand jury for Attempted Sexual Abuse of a Minor and Abusive Sexual Contact.
Kameron Jackson, age 20, was indicted by a federal grand jury on May 15, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 6, 2013 and pled not guilty to the indictment.
The maximum penalty upon conviction is up to 15 years in custody, a $250,000 fine, or both; life of supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation and Jackson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Jackson was detained pending trial. A trial date has not been set.
Regional Director of Califco, LLC, A Property Management Company, Admits Violating the EPA’s Clean Air ActRead the Press Release
Califco, LLC Also Pleads Guilty and Agrees to Pay a $500,000 Fine
DALLAS — Jonathan Isaac Shokrian, 28, who served as a Regional Director at Califco, LLC, with oversight of the company’s business operations in Texas, appeared in federal court in Dallas today, before Chief U.S. District Judge Sidney A. Fitzwater, and pleaded guilty to an Information charging one count of failure to notify under the Clean Air Act, related to an asbestos removal project. In addition, on behalf of the corporation, Califco’s President and CEO, Elias Shokrian, who is Jonathan Shokrian’s father, pleaded guilty to the same offense. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Califco is a property management company headquartered in Beverly Hills, California; it has a regional office located on North Story Road in Irving, Texas. Califco owns and operates several commercial properties in the Dallas area, including Plymouth Park Shopping Center on North Story Road in Irving and Crest Plaza Shopping Center on South Lancaster Road in Dallas.
Jonathan Shokrian faces a maximum statutory penalty of two years in federal prison, a $250,000 fine and restitution. If the Court accepts the term of the government’s plea agreement with the corporation, Califco will pay a $500,000 fine and will be placed on a five-year term of probation. Sentencing is set for September 27, 2013, before U.S. District Judge Sidney A. Fitzwater.
The Clean Air Act authorizes the U.S. Environmental Protection Agency (EPA) to establish standards to prevent or limit the emission of hazardous air pollutants into the atmosphere. The EPA has enacted regulations under the Clean Air Act that control the removal, handling and disposal of asbestos.
According to documents filed in the case, Elias Shokrian hired another individual, “B.M.,” to be Califco’s Director of Development and supervise construction and renovation and provide oversight of asbestos abatement work. In 2008, Califco, Jonathan Shokrian and B.M. contracted with a specialized asbestos abatement contractor to remove asbestos from an old movie theater in the Crest Plaza Shopping Center. That abatement was conducted in compliance with all federal, state and local regulations and was completed in October 2008.
Approximately one month later, Jonathan Shokrian decided to conduct a renovation of the abandoned former Fazio’s department store in the Plymouth Park Shopping Center. Rather than hiring a professional asbestos abatement contractor, as Califco had done on its Crest Plaza Project, Shokrian attempted to save money by employing two day laborers to remove ceiling tile and floor tile and mastic from the Fazio’s building, even though he knew these materials contained asbestos.
While Califco provided the day laborers with masks, respirators and other tools to facilitate the removal of the asbestos-containing material, the masks and respirators were not adequate to protect the workers from the asbestos fiber. Neither Shokrian nor B.M. informed the day laborers on the site, or the Califco-employed maintenance worker, that there was asbestos in the tile and mastic being removed. Neither Shokrian nor B.M. notified any of the other commercial tenants of the Plymouth Park Shopping Center that asbestos-containing materials were being removed from the Fazio’s building.
In mid to late February 2009, day laborers, under Shokrian’s supervision, began using large amounts of gasoline to remove the remaining asbestos-containing floor tile mastic in the Fazio’s building. On February 27, 2009, after responding to a call regarding the overwhelming smell of gasoline in the area around the Plymouth Park Shopping Center, the Irving Fire Department ordered the evacuation of the shopping center and a portion of a nearby residential neighborhood because of the concentration of gasoline fumes in the Fazio’s building.
The investigation was conducted by the EPA and the Texas Department of State Health Services. Assistant U.S. Attorney Errin Martin is in charge of the prosecution.
Rapid City Men Plead Guilty to Controlled Substance ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that Kenneth Morales-Scott, Jr., and Cayleb Louis Young, both age 35, of Rapid City, South Dakota appeared before U.S. District Judge Roberto A. Lange on June 4, 2013 and pled guilty to Possession with Intent to Distribute a Controlled Substance.
The maximum penalty upon conviction is 5 years of custody, a $250,000 fine, or both; 2 years of supervised release; and a $100 Special Assessment. Restitution may also be ordered.
The conviction arose from an incident that occurred in November 2012. Morales-Scott and Young traveled from Rapid City to California where Morales-Scott was provided over 10 pounds of marijuana to deliver to an individual in Wisconsin. Young became aware of the nature of the trip, and agreed to assist in delivery of the marijuana in exchange for being reimbursed. South Dakota Highway Patrol performed a traffic stop on a vehicle on Interstate 90 that was driven by Morales-Scott with Young as a passenger. During a subsequent vehicle search, troopers found marijuana in the trunk of the vehicle.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller is prosecuting the case.
A presentence investigation was ordered, and a sentencing date of August 19, 2013 was set for both Morales-Scott and Young. Both men were released pending sentencing.
Rapid City Man Indicted for Failing to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota man has been indicted by a federal grand jury for allegedly failing to register as a convicted sex offender between November 2012 and January 2013.
Adam Trejo, age 24, was indicted by a federal grand jury on January 23, 2013 for failure to register or update as a sex offender. Trejo appeared before U.S. Magistrate Judge Veronica L. Duffy on June 4, 2013 and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years of imprisonment and a $250,000 fine. The charge is merely an accusation and Trejo is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Wayne Venhuizen is prosecuting the case.
Trejo was remanded to the custody of the U.S. Marshal. A trial date has been set for August 13, 2013.
Portland-Area Drug Trafficker Sentenced to over 17 Years in Federal PrisonRead the Press Release
PORTLAND, Ore. – Michael Thomas Ragnone, 37, of Portland, Oregon, was sentenced yesterday by U.S. District Judge Michael W. Mosman to 210 months (17.5 years) in prison and five years of supervised release, for his leadership role in a conspiracy responsible for distributing significant quantities of methamphetamine in the Portland metropolitan area.
“This 17-year sentence marks the culmination of an efficient investigation by the Clackamas County Interagency Task Force, the Drug Enforcement Administration (DEA) and an effective federal prosecution targeting a drug distribution network responsible for introducing significant quantities of methamphetamine into our community,” said U.S. Attorney Amanda Marshall. “Thanks to the hard work of our law enforcement partners, another drug dealer is off the streets.”
In March 2011, Clackamas County Interagency Task Force (CCITF) officers successfully introduced an undercover officer to an upper-mid level drug dealer known to them as “Russian John.” Agents identified “Russian John” as Michael Thomas Ragnone, the owner of R&M Motors car lot at 809 North Rosa Parks Way. Between April and September 2011, agents conducted several controlled buys of methamphetamine from Ragnone and his drug couriers, in multiple ounce quantities. Surveillance officers observed Ragnone driving a BMW M5, Mercedes E320, and Honda CRV. On September 7, 2011, agents arrested Ragnone and executed a search warrant at his car lot. They seized 15 firearms, over four pounds of methamphetamine, digital scales, and piles of stolen property including boat motors, bicycles, credit cards, and hundreds of catalytic converters.
At the defendant’s initial appearance in federal court, the magistrate judge released defendant to pretrial supervision, over the government’s objection. During his time on pretrial supervision, defendant continued to engage in criminal conduct by sending a methamphetamine-laced letter to his incarcerated girlfriend, using stolen credit cards, and diversifying his drug distribution business to include both heroin and methamphetamine. He was taken back into custody in October 2012. As a result of his pretrial misconduct, defendant lost 7 years’ worth of sentencing credit for “acceptance of responsibility.” On June 6, 2013, Judge Mosman sentenced Ragnone to 210 months in prison and imposed a money judgment of $500,000. Judge Mosman found that aggravating factors justified the lengthy prison term, including the firearms, defendant’s leadership role, and defendant’s post-indictment misconduct in the community while pending trial.
Ragnone was the final defendant to be sentenced in the overall CCITF investigation in which Ragnone’s co-conspirators in related cases received federal prison sentences of 70 months, 75 months, 87 months, 120 months, and 262 months.
This case was investigated by Clackamas County Interagency Task Force and the DEA. The case was prosecuted by Assistant United States Attorney Leah K. Bolstad and Special Assistant United States Attorney Steven T. Mygrant.
Porcupine Man Pleads Guilty to Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that William Thunder Hawk, age 19, of Porcupine, South Dakota appeared before U.S. Magistrate Judge Veronica L. Duffy on May 30, 2013 and pled guilty to assault resulting in serious bodily injury.
The maximum penalty upon conviction is 10 years of imprisonment and a $250,000 fine.
The charge relates to Thunder Hawk punching and kicking a female multiple times in the face and body near Porcupine between August 5 and 6, 2012. The assault resulted in severe facial swelling and fractured nasal bones.
The investigation was conducted by the Bureau of Indian Affairs Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. The case is being prosecuted by Assistant U.S. Attorney Wayne Venhuizen.
A presentence investigation was ordered and a sentencing date was set for September 27, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Porcupine Man Charged with Conspiracy to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Porcupine, South Dakota man was indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Kevin Lance, age 47, was indicted on May 21, 2013 for conspiracy to distribute marijuana at Pine Ridge. He appeared before U.S. Magistrate Judge Veronica L. Duffy on June 3, 2013 and pled not guilty to the indictment.
The maximum penalty upon conviction is not more than 5 years’ imprisonment and $250,000 fine. The charge is merely an accusation and Lance is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, Northern Plains Safe Trails Drug Enforcement Task Force, South Dakota Division of Criminal Investigation, and the Bureau of Indian Affairs Office of Justice Services. Assistant U.S. Attorney Ted L. McBride is prosecuting the case.
Lance was released on bond pending trial. A trial date has not been set.
Pennsylvania Jeweler Sentenced to 51 Months in Prison for Running $3.4 Million Ponzi SchemeRead the Press Release
ALEXANDRIA, Va. – Matthew James Addy, 34, of Lancaster, Penn., was sentenced today to 51 months in prison, followed by three years of supervised release, for running a $3.4 million Ponzi scheme that involved the fake purchase and resale of wholesale jewelry and loose precious stones. Addy was also ordered to pay $2,741,321 in restitution to his victims and to forfeit to the government hundreds of thousands of dollars in jewelry.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by United States District Judge James C. Cacheris. Addy pleaded guilty to securities fraud charges on February 22, 2013.
According to court records, Addy owned Edward J. & Company, which operated a retail jewelry store in Lancaster called La Porte Jewelers. In 2010, Addy began recruiting individuals to invest in promissory notes purportedly linked to transactions involving wholesale jewelry and loose precious stones, which would be purchased through Addy’s businesses and resold to retail jewelers for a profit. Addy ultimately recruited more than 40 investors from throughout the United States, including within the Eastern District of Virginia, and from Europe, and obtained nearly $3.4 million in invested funds. Addy recruited many of the victim investors from within religious groups with which he was associated and used those affiliations to gain their trust—often referred to as “affinity fraud.”
The investment scheme was a fraud, Addy never conducted any of the contemplated wholesale jewelry transactions, and Addy used the vast majority of the invested funds on unrelated business and personal expenses and to support his comfortable lifestyle.
Approximately $665,000 was paid back out to investors during the course of the fraud as supposed profits on their investments and was designed to conceal the fraud and induce further investments in the scheme. Much of these payouts came directly from funds contributed by new investors, known as “Ponzi” payments.
This case was investigated by the FBI’s Washington Field Office. Assistant United States Attorney Paul J. Nathanson prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Parmelee Man Pleads Guilty to Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that Nathaniel Red Bird, age 32, of Parmelee, South Dakota appeared before U.S. District Judge Roberto A. Lange on June 4, 2013 and pled guilty to Involuntary Manslaughter and Aiding and Abetting.
The maximum penalty upon conviction is 8 years in custody, a $250,000 fine, or both; 3 years of supervised release; and $100 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on the evening of August 13, 2011 and into the early morning hours of August 14, 2011, when the victim died of asphyxiation from overlaying due to the negligence of Red Bird and a co-defendant.
The investigation was conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
A presentence investigation was ordered and a sentencing date was set for August 26, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Owner of Michigan Inventory Counting Businesss <br /> Pleads Guilty to Tax FraudRead the Press Release
David P. Rowley, a resident of Jackson, Michigan, pleaded guilty yesterday before U.S. District Judge Denise Page Hood to filing a false individual income tax return, announced Kathryn Keneally, the Assistant Attorney General for the Justice Department's Tax Division, and Barbara L. McQuade, the U.S. Attorney for the Eastern District of Michigan.
According to documents filed with the court, between 1999 and 2009, Rowley owned and operated an inventory business for automobile dealerships known as Kennedy Inventory & Service Inc. (KIS). The business also operated under the names D&P Inventory and Spartan in Ohio Inventory. At Rowley’s direction, KIS withheld trust fund taxes, which are the employee portion of Federal Insurance Contributions Act taxes, and employee income tax withholding from his own wages as well as from the wages of the approximately 50-100 employees that it employed at any given time during this period. Also at Rowley’s direction, KIS failed to pay over those trust fund taxes to the Internal Revenue Service (IRS). In addition, Rowley failed to timely file Employer's Quarterly Federal Tax Returns for KIS for quarters during 1999 through 2006 and Individual Income Tax Returns for himself for tax years 2002 through 2007.
In March 2008, Rowley filed 32 delinquent employer tax returns for KIS for years 1999 through 2006 in which he falsely stated that the company had paid over its employees’ trust fund taxes to the IRS when it had not. In November 2008, Rowley filed delinquent individual tax returns for himself for 2002 through 2007. On those returns, he falsely reported that KIS had withheld income taxes from his wages. The tax loss to the government from Rowley’s fraud was between $200,000 and $400,000.
Rowley faces a maximum sentence of three years in prison, one year of supervised release, a $250,000 fine and a $100 special assessment. He has agreed to pay restitution of $303,433.12 to the IRS. Sentencing is scheduled for Sept. 5, 2013.
The case was investigated by special agents of IRS - Criminal Investigation. Trial Attorney Daren Firestone of the Justice Department's Tax Division is prosecuting the case.Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Niagara Falls Man Sentenced for Drug PossessionRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Octavius Miller, 32, of Niagara Falls, New York, was sentenced by Chief United States District Judge William M. Skretny to 7 years imprisonment and 3 years of supervised release for his conviction of Possession with Intent to Distribute Cocaine Base (crack).
Assistant U.S. Attorney Robert C. Moscati said that during the execution of a search warrant in December 2010, law enforcement officers found Miller to be in possession of approximately 123 grams of cocaine base, or crack, in his residence on Cleveland Avenue in Niagara Falls, New York. Miller admitted during his plea proceedings that he possessed the crack with the intent to sell it and that he had done so on numerous occasions before and after these drugs were seized.
The plea was the culmination of an investigation on the part of the Niagara Falls Police Department, under the direction of Superintendent Bryan DalPorto, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Joseph A. Anarumo, and the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division.
New Boston, Texas Woman Arrested for Mailing Threatening CommunicationsRead the Press Release
Department of Justice
Office of Public AffairsTEXARKANA, Texas – A 35-year-old New Boston, Texas woman has been arrested for a federal violation in the Eastern District of Texas, announced U.S. Attorney John M. Bales and FBI Special Agent in Charge Diego Rodriguez.
Shannon Richardson, also known as Shannon Guess and Shannon Rogers, was arrested today pursuant to a criminal complaint issued by U.S. Magistrate Judge Caroline Craven. The complaint charges Richardson with mailing a threatening communication to the President of the United States.According to the arrest affidavit, on May 20, 2013, Richardson is alleged to have actually mailed three letters containing the toxin ricin. The letters were sent to President Barack Obama and Mark Glaze in Washington, D.C., and Mayor Michael Bloomberg in New York City. Richardson was arrested today in Mt. Pleasant, Texas, and appeared before Judge Craven this afternoon in Texarkana, Texas, for an initial appearance.
If convicted, Richardson faces up to10 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation, the U.S. Postal Inspection Service and the U.S. Secret Service. Also providing assistance to the investigation are the New Boston, Texas Police Department, the Texas Department of Public Safety and the Shreveport, Louisiana Police Department. This case is being prosecuted by Assistant U.S. Attorneys D. Ryan Locker, Frank Coan and Brit Featherston.
It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
Nenana Man sentenced to six months in prison for illegal wildlife traffickingRead the Press Release
Anchorage, Alaska -U.S. Attorney Karen L. Loeffler announced today that a Nenana, Alaska, resident was sentenced for violating federal wildlife laws, including the Lacey Act, the Marine Mammal Protection Act and the Migratory Bird Treaty Act.
Miles W. Martin, 61, was sentenced today by Chief U.S. District Court Judge Ralph R. Beistline to six months in prison. He pled guilty in March 2013, to four counts of a twenty-eight count indictment which charged Martin with wildlife trafficking involving the illegal sale of migratory birds, smuggling of wildlife, illegal sale of marine mammal parts and conspiracy
Along with his prison sentence, Martin’s sentence banned him from selling wildlife parts for life, required him to relinquish to the United States more than 900 pounds of wildlife parts including lion, bear, walrus ivory, parts of seal, polar bear parts, and elephant ivory, and to pay a fine of $6,500. He also received three years supervised release following his prison term.
Martin admitted to being involved in a lengthy and long term walrus ivory smuggling conspiracy, as well as to being involved in the smuggling of wildlife parts world-wide, and to the illegal sale of migratory bird parts.
Regarding his involvement in illegal walrus ivory sales, Martin admitted that from at least February 2010 and continuing up to March 9, 2011, he conspired with others to illegally purchase walrus tusks and walrus parts for illegal resale, transport, and export from the United States. Between July 2010 and March 2011, Martin’s two co-conspirators traveled to Savoonga, Alaska, and purchased walrus tusks and parts taken from animals recently killed and tagged by individuals in Savoonga. The co-conspirators transported the walrus tusks and parts to their home in Glennallen, Alaska, and then transported some of those tusks and parts to Nenana, Alaska and Fairbanks where they transferred them to Martin. In August 2010, and as part of the conspiracy, Martin paid $2,138 for the airline tickets and gave $1,000 cash to the co-conspirators for their trip. Approximately 275 pounds of walrus tusks were purchased on that trip. In exchange for financing that trip, Martin received raw walrus tusks from the co-conspirators, and later illegally sold some of those tusks.
Martin illegally purchased at least 26 walrus tusks from the two co-conspirators who provided Martin with bogus “gift” letters, attempting to disguise Martin’s illegal purchase of the walrus ivory. Martin and the other co-conspirators also attempted to dye the walrus tusks to make the tusks look like fossil ivory in an effort to conceal the illegality of the walrus tusk purchases and sales. Martin’s plea agreement also detailed the sale of a walrus head (with tusks) to a customer in Argentina, and the smuggling of the walrus head out of the United States without the proper customs permits.
He also admitted the illegal sale of marine mammal parts to an undercover agent including: 20 seal claws; one polar bear tooth; one tooth offered for sale as a whale tooth which was a tooth of a seal or sea lion; polar bear teeth; fur; and various migratory bird parts.Martin further admitted that in August 2010, he knowingly exported walrus ivory from Alaska to a customer in Denmark contrary to federal law, including the Convention on International Trade in Endangered Species and the Endangered Species Act. Martin on numerous occasions between May 2009 and April 2011, unlawfully sold and exported wildlife such as wolf, lion, lynx, and walrus parts, to customers outside the United States including the Czech Republic, United Kingdom, Italy, Australia, Belgium, Argentina, Denmark, Japan, Canada, Finland, Norway, Brazil, and Germany. Between May 2009 and April 2011, Martin exported at least 30 packages of wildlife parts without obtaining an export license, an International Trade in Endangered Species export permit or the necessary wildlife export documentation.
Between February 2007 and November 2012, Martin illegally purchased, sold, and exported wildlife parts and engaged in approximately 225 transactions totaling approximately $58,000.
As noted in his sentence, Martin relinquished to the U.S. Fish and Wildlife Service more than 900 pounds of wildlife parts kept in his home. These parts included walrus parts, seal teeth, bear parts, bird parts, whale parts, and walrus ivory tusk tags from recently killed walrus, Some of the ivory tusk tags were still attached to small chunks of ivory, some of which had been dyed in order to make the raw ivory appear to be fossilized ivory and thus not prohibited for sale by the Marine Mammal Protection Act.
In court, Martin stated that his access to the internet facilitated his illegal wildlife trafficking and that he was out of the wildlife business for the rest of his life.
Karen Loeffler, United States Attorney for Alaska, noted that protection of our spectacular and special Alaskan wildlife and enforcement of the laws that govern and protect access to these animals is an important priority for law enforcement.
Stan Pruszenski of the U.S. Fish and Wildlife Service Office of Law Enforcement said, “Significant wildlife violations require significant punishment. This sentence will serve to deter others similarly inclined.”
Ms. Loeffler commends the U.S. Fish and Wildlife Service Office of Law Enforcement for the investigation of this case and the assistance provided from the Alaska Wildlife Troopers and the National Park Service.
Mother and Daughter Charged in Passport SchemeRead the Press Release
Doris Rotondi, 86, and her daughter Joy Taylor 55, both of Colwyn, Pennsylvania, were charged today by Indictment with conspiracy to commit passport fraud and making, uttering and possessing counterfeit checks, false statements in United States passport applications, passport mutilation, theft of government property, and failure to disclose income to the Social Security Administration, announced United States Attorney Zane David Memeger.
The indictment charges that the defendants have provided false information to obtain passports and then used the passports to open bank accounts in false names and for other purposes.
If convicted, Rotondi faces a maximum possible sentence of 60 years’ imprisonment, a $1.75 million fine, 5 years supervised release and a $400 special assessment.
If convicted, Joy Taylor faces a maximum possible sentence of 95 years’ imprisonment, a $2.5 million fine, 5 years supervised release and a $700 special assessment.
The case was investigated by the Department of State Office of the Inspector General, U.S. Immigration and Customs Enforcement Homeland Security Investigations, and the Social Security Administration, Office of the Inspector General and is being prosecuted by Assistant United States Attorney Pamela Foa.
Click here to view the indictment
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PATTY HARTMAN, Media Contact, 215-861-8525Michigan Woman Arrested for Criminal ContemptRead the Press Release
Doreen Hendrickson of Commerce Township, Mich., was arrested today following an indictment by a federal grand jury for criminal contempt, the Justice Department and Internal Revenue Service (IRS) announced.
Hendrickson and her husband, Peter Hendrickson, filed tax returns for 2002 and 2003 on which they claimed more than $20,000 in fraudulent tax refunds. These returns were based on the frivolous argument set forth in Peter Hendrickson’s book, Cracking the Code, that only federal, state and local government employees are liable for the payment of income taxes. In May 2007, as part of a lawsuit against the Hendricksons filed by the department’s Tax Division, U.S. District Judge Nancy G. Edmunds in Detroit entered a permanent injunction that barred the Hendricksons from filing additional false tax returns. Judge Edmunds also ordered the Hendricksons to file amended 2002 and 2003 returns. According to the indictment, Doreen Hendrickson violated this injunction by failing to file amended 2002 and 2003 tax returns and by filing a false 2008 tax return that was based on the arguments in her husband’s book.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
This case was investigated and is being prosecuted by Trial Attorneys Melissa S. Siskind and Jeffrey B. Bender of the Tax Division, with the assistance of IRS-Criminal Investigation.
Man from Mexico Charged with Illegal Reentry After DeportationRead the Press Release
United States Attorney Brendan V. Johnson announced that a man from Mexico has been indicted by a federal grand jury.
Jesus Ochoa Aguirre, age 30, was indicted by a federal grand jury on October 10, 2012 for Illegal Reentry after Deportation. Ochoa Aguirre appeared before U.S. Magistrate Judge Mark A. Moreno on June 6, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release, an additional 2 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation, and Ochoa Aguirre is presumed innocent until and unless proven guilty.
The investigation is being conducted by Homeland Security Investigations. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Ochoa Aguirre was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Lummi Tribal Staff Recognized for Outstanding Work with Victims of CrimeRead the Press Release
The Lummi Nation’s Crime Victims Unit and Lummi Police Detective Kelley Long were recognized this week by U.S. Attorney Jenny A. Durkan for their outstanding work with crime victims. The Lummi Victims of Crime Unit was established 23 years ago and has 14 staff members working to assist those who have suffered domestic violence, abuse, assault or other victimization. U.S. Attorney Durkan made the presentation Tuesday June 4, 2013 at a meeting of the Lummi Nation Tribal Council.
“Nothing is more important than the care we provide to those who have been touched by crime and violence,” said U.S. Attorney Durkan. “The staff of the Lummi Victims of Crime Office dedicates their services to helping families who are at their lowest point – often coping with terrible loss. On behalf of all the attorneys and the victim/witness coordinators in my office, I want to thank the Lummi staff and the tribe for all they do to help the victims heal and to help us hold the perpetrators accountable.”
The presentation was a surprise for the Victims of Crime staff members including Victim Advocates Winona Boxberger, Irenee Owings, Olivia Solomon, Charlene Casimir-George, and Terrence “TJ” Adams. Two attorneys who assist tribal members in contested family law matters: Michelle Hull and Ben Pratt, and their legal assistant Malcolm Owings. And four staff members who work at the Lummi shelter were recognized: Lorayne Dennis, Tanya McCutchen, Tracy Douglas, and Patty John. Office staff Misty Cisimir and Andrea Johnson were also recognized.
Nikki Finkbonner, the Program Coordinator for the Victims of Crime Office accepted the certificate on behalf of her staff. The Lummi Victims of Crime Office provides comprehensive victim services including: domestic violence, sexual abuse/assault, teen dating violence, stalking, and emergency shelter. The Lummi Victims of Crime Department provides direct services including crisis counseling, follow-up contacts, therapy counseling, group treatment, legal assistance, personal advocacy, compensation claims, transportation, transitional housing, emergency shelter, and death notifications with Law Enforcement.
U.S. Attorney Durkan also applauded the excellent work of Lummi Tribal Detective Kelley Long who has worked closely with the FBI to investigate crimes that are forwarded to the U.S. Attorney’s Office for prosecution. The Lummi Tribal Police Department has approximately 20 commissioned officers.
The Lummi Nation is a self-governing, federally recognized Indian Tribe. The Lummis are the third largest tribe in Washington State, serving over 5,000 members whose median age is 29 years old.
Lower Brule Man Charged with Abusive Sexual Contact of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota man has been indicted by a federal grand jury.
Robert Stricker, age 39, was indicted by a federal grand jury on November 15, 2012 for Abusive Sexual Contact of a Minor. Stricker appeared before U.S. Magistrate Judge Mark A. Moreno on June 5, 2013 and pled not guilty to the Indictment.
The maximum penalty upon conviction is 3 years of imprisonment, a $250,000 fine, or both; 2 years of supervised release, a mandatory minimum term of 5 years up to life of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation, and Stricker is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Stricker was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Los Angeles-Based Businessman Convicted in Scheme to Evade Customs Duties on $30 Million of Chinese-Made TextilesRead the Press Release
A federal jury today convicted Sunil Jiwat Mirwani and his corporation, M Trade, Inc., in connection with a scheme to evade customs duties on more than $30 million in Chinese-made jeans, skirts, shorts and other wearing apparel.
Both Mirwani and his corporation were charged with one count of conspiring to defraud the United States, two counts of importing goods by means of false statements, and one count of conspiring to launder money. The case was tried before a jury beginning on June 4, 2013. This afternoon, after less than a day of deliberations, the jury returned guilty verdicts on all four counts for both defendants.
The evidence presented at trial showed that as part of the conspiracy, Mirwani hired a group of San Diego-based businessmen and logistics professionals to initiate shipments of Mirwani’s merchandise from ports in China to the Port of Long Beach, California. When the goods arrived, Mirwani and his conspirators would ensure that the merchandise was classified as “in bond”—meaning it would not enter the commerce of the United States, but instead be transshipped through the territory of the United States to Mexico. Rather than complete the transshipment to Mexico, however, Mirwani and his conspirators would divert the merchandise to Mirwani’s El Monte, California-based warehouse, as well as to other warehouses in the Los Angeles-area. Having imported this merchandise effectively duty-free, Mirwani would then sell his jeans, shorts and skirts within the United States at an advantage over his law-abiding competitors—including domestic American manufacturers of similar goods and foreign manufacturers who had paid the applicable duties on their imports. As part of the scheme, Mirwani and his conspirators falsified customs documentation and database entries, even going so far as to forge special perforation marks found on particular customs filings.
The evidence showed that Mirwani also conspired to launder money, transmitting nearly $10 million from M Trade, Inc.’s bank account to the account of Mirvana International, a Hong Kong-based company that Mirwani shares with his twin brother. In addition, Mirwani transmitted similar sums to the Mirvana International account through other intermediary accounts in the United States and Mexico. Finally, Mirwani also transmitted money through M Trade Inc.’s account directly to mainland China. The international wire transfers served to conceal proceeds of the fraud as well as to help fund future fraudulent shipments.
U.S. Attorney Duffy said she was pleased with the verdict: “Not only does this type of fraud deplete our public treasury, but it also deprives domestic manufacturers and law-abiding importers of a level playing field. This prosecution and today’s convictions underscore our commitment to protecting the economic health of the United States and ensuring that no one exploits American and international markets for their personal gain.”
“Today’s verdict shows that the jury refused to believe that Mr. Mirwani was a confused dupe, but rather through his own crafty, deceitful means, wittingly conspired to pocket over $500,000 by evading the proper customs taxes and laundered the proceeds to avoid detection by the authorities,” said Jose A. Gonzalez, Special Agent in Charge for Internal Revenue Service Criminal Investigation (IRS CI). “Evasion of any type of tax, income tax or otherwise, is a crime and IRS CI will prosecute known perpetrators to the fullest extent of the law.”
A sentencing hearing is scheduled for September 9, 2013, at 9:00 a.m. before United States District Judge Michael M. Anello.
DEFENDANT Case Number: 12CR3137-MMA Sunil Jiwat Mirwani
M Trade, Inc SUMMARY OF CHARGES AND MAXIMUM PENALTIESCount 1: Conspiracy to Defraud the United States – 18 U.S.C. § 371. Maximum penalties: 5 years in prison, 3 years of supervised release, $250,000 fine and a $100 special assessment
Counts 2 and 4: Entry of Goods by Means of False Statements – 18 U.S.C. § 542. Maximum penalties: 2 years in prison, 1 year of supervised release, $250,000 fine and a $100 special assessment
Count 57: Conspiracy to Launder Monetary Instruments – 18 U.S.C. § 1956(a)(2)(A) and (h). Maximum penalties: 20 years in prison, 3 years of supervised release, $500,000 fine (or a fine worth twice the amount of the laundered money) and a $100 special assessment.
INVESTIGATING AGENCIESImmigration and Customs Enforcement – Homeland Security Investigations
Internal Revenue Service – Criminal Investigations
United States Food and Drug AdministrationLittle Rock Man Found Guilty on Federal Sex Trafficking ChargeRead the Press Release
First Sex Trafficking Case Prosecuted by Eastern District of Arkansas
Little Rock - Christopher R. Thyer,United States Attorney for the Eastern District of Arkansas, Randall C. Coleman, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation, and Little Rock Police Department Chief Stuart Thomas, announced that a federal jury found Jermaine Lamon Roy, age 22, of Little Rock guilty of one count of sex trafficking by use of force, fraud, or coercion. Roy will be sentenced at a later date to be set by the court. He faces a statutory minimum of 15 years to life in the Bureau of Prisons.
"This is an important case for the victims of sex trafficking," stated Thyer. "Because of the investigative commitment by the Little Rock Police Department's Vice Squad, this case was brought to the federal level for prosecution. Together with the FBI, they provided the necessary evidence to stop the violence and forced sex trafficking committed by Roy. While this is the first sex trafficking case prosecuted in the Eastern District of Arkansas, I feel sure there will be more. Those who devalue human dignity will meet justice."
"Today's guilty verdict is the first conviction resulting from the work of our Denied Innocence Task Force, a partnership between my office and the Little Rock, North Little Rock, Benton, Bryant, and Conway Police Departments, the Saline County Sheriff's Office, Arkansas State Police, Homeland Security Investigations, and the United States Marshal's Service," stated FBI Special Agent in Charge Randall C. Coleman. "Working together, we will continue to aggressively investigate those who participate in sex trafficking."
"We are grateful for work of the Denied Innocence Task Force and for the diligent prosecution of this case by the United States Attorney's Office," said Chief Thomas. "I hope this sends an important message that we will continue to pursue such cases and that we will be successful."
The case was investigated by the Little Rock Police Department Vice Unit in conjunction with the FBI through the Denied Innocence Task Force. They conducted a series of three undercover prostitution operations. Through these operations they learned of a pimp working in Little Rock using the name Vegas. During the third undercover operation, the Denied Innocence Task Force came in contact with a victim who identified the man using the name Vegas as her pimp. Vegas, later determined by investigators as Jermaine Roy, was arrested as a result of that sting operation.
Roy was charged in a Superseding Indictment on May 9, 2013, with one count of sex trafficking by the use of force, fraud, or coercion in violation of Title 18, United States Code, Section 1591(a)(1).
The jury reached a verdict after four and one-half hours of deliberation following four days of testimony and presentation of evidence. Testimony from the victim, family members of the victim, and another prostitute who worked for Vegas showed that Roy routinely used force or threatened the use of force to cause the victim to engage in commercial sex acts.
This case was investigated by the Little Rock Police Department Vice Squad in partnership with the FBI Denied Innocence Task Force, of the FBI, the Little Rock, North Little Rock, Benton, Bryant, and Conway Police Departments, the Saline County Sheriff's Office, Arkansas State Police, Homeland Security Investigations, and the United States Marshal's Service. The case was prosecuted by Assistant United States Attorneys Marsha Clevenger, Tricia Harris and Kristin Bryant.
Kaufman County Man, Who Used Identities of Deceased Persons to Claim Federal Income Tax Refunds,Read the Press Release
is Sentenced to 60 Months in Federal Prison and Ordered to Pay Nearly $450,000 in Restitution
DALLAS — Jason Cano was sentenced this afternoon, by U.S. District Judge Barbara M. G. Lynn, to 60 months in federal prison and ordered to pay $447,830 in restitution following his guilty plea in January 2013 to one count of filing false, fictitious and fraudulent claims against the U.S. and one count of aggravated identity theft. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
A criminal complaint was filed in January 2012 charging Cano with making false, fictitious or fraudulent claims, aggravated identity theft and wire fraud. In February 2012, a federal grand jury returned an 11-count indictment charging Cano with five counts of wire fraud, five counts of false, fictitious or fraudulent claims and one count of aggravated identity theft. He was arrested several months later, in September 2012, by special agents with Internal Revenue Service - Criminal Investigation (IRS-CI), in the Trenton, New Jersey area, and has been in federal custody since that time.
According to the factual resume filed in the case, beginning in 2008 and continuing through February 24, 2011, Cano prepared and filed at least 497 fraudulent federal income tax returns, claiming $883,427 in refunds, by using the names and social security numbers of deceased individuals. In fact, many of the identities were those of deceased 16-year-olds that the defendant had obtained from the Social Security death index, that was accessible through a number of public websites for a period of time.
The factual resume also states that Cano fabricated a Form W-2 for each return that contained a fictitious amount of paid wages and tax withholding, and those W-2 forms were purportedly issued by one of three employers, HI-LO Ozark Automotive, Labor Ready or Pappy’s Sand and Gravel. Cano filed most of these returns electronically using Turbo Tax and each return he filed requested that the refund be deposited into a reloadable prepaid debit card that Cano had acquired. After the refunds were loaded, Cano would use the cards for his own use and benefit, or provide them to friends and associates for their use.
In fact, according to the complaint filed in the case, the investigation into Cano’s activities began when IRS CI received information from a fraud compliance officer, at a company that issues stored value cards and prepaid debit cards, that an individual received three federal income tax refunds on one prepaid card. Generally, each tax payer is issued only one tax refund.
According to both the complaint and factual resume, on February 25, 2011, a federal search warrant was executed at Cano’s residence in Kemp, Texas, and IRS-CI agents seized dozens of documents containing the names, social security numbers, wages, employer information and direct deposit account numbers associated with the fraudulent returns he filed. The factual resume also states that a forensic exam of computers seized revealed that the Turbo Tax website had been accessed 1,876 times and the IRS website and bank-related websites had been accessed hundreds of times.
In September 2012, the Justice Department’s Tax Division issued a new directive to further the efforts of the Tax Division and U.S. Attorneys’ Offices to respond quickly and effectively to the challenges in stolen identity refund fraud (SIRF) cases. Additional information about the Tax Division and its enforcement efforts may be found at http://www.justice.gov/tax/.
IRS-CI was in charge of the investigation and Assistant U.S. Attorney Chris Stokes prosecuted.
Justice Department Reaches Agreement with California <br /> Water District on Bailout Under the Voting Rights ActRead the Press Release
The Justice Department announced that it has reached an agreement with the North Yuba Water District, a special district in California, that, if approved by the court, will allow for the district to bail out from its status as a “covered jurisdiction” under the special provisions of the Voting Rights Act, and thereby exempt the district from the preclearance requirements of Section 5 of the Voting Rights Act. The district covers part of Yuba County, Calif., which is a jurisdiction subject to Section 5. The agreement is in the form of a consent decree filed today in the U.S. District Court for the District of Columbia.
Under Section 5 of the Voting Rights Act, certain covered jurisdictions, determined according to Section 4 of the act, are required to seek preclearance for any changes in voting qualifications, standards, practices or procedures from the U.S. District Court for the District of Columbia, or from the U.S. Attorney General, prior to their implementation. Section 4 of the act provides that a covered jurisdiction may seek to “bail out,” or remove itself from such coverage, and therefore be exempted from the preclearance requirements, by seeking a declaratory judgment before a three-judge panel in U.S. District Court for the District of Columbia. A bailout judgment can be issued only if the court determines that the jurisdiction meets certain eligibility requirements for bailout contained in the statute, including a 10-year record of nondiscrimination in voting-related actions. The act also provides that the Attorney General can consent to entry of a judgment of bailout only if, based upon investigation, the Attorney General is satisfied that the jurisdiction meets the eligibility requirements.
The North Yuba Water District filed its bailout action in the U.S. District Court for the District of Columbia on March 29, 2013. District officials had contacted the Attorney General prior to filing its action, indicating that the district was interested in seeking a bailout. The district provided the department with substantial information, and the department conducted an investigation to determine the district’s eligibility. Based on that investigation, the department is satisfied that the district meets the Voting Rights Act’s requirements for bailout.
“In this case, the department carefully evaluated the information provided by the district, and conducted its own investigation, which has satisfied us that the district is eligible for bailout,” said Matthew Colangelo, Deputy Assistant Attorney General for the Civil Rights Division. “We appreciate the district’s cooperation in the resolution of this matter.”The consent decree details the legal and factual basis for a bailout determination and, if approved, will grant the district’s request. The court will retain jurisdiction of the action for 10 years and can reopen the action upon the motion of the Attorney General or any aggrieved person alleging conduct by the district that would have originally precluded the district from bailing out if it had occurred during the 10 year period preceding entry of the consent decree.
Information about bailout, the Voting Rights Act, and other federal voting laws is available on the Justice Department website at www.justice.gov/crt/voting. Complaints may be reported to the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.Justice Department Announces Plan for Advancing Crime Victims’ Rights and Services in the Twenty-first CenturyRead the Press Release
The Justice Department today unveiled a plan calling for sweeping changes to advance crime victims’ rights and services in the 21st century.
Developed by the Office of Justice Programs (OJP) and Office for Victims of Crime (OVC), Vision 21: Transforming Victim Services Final Report, is the first collective examination in 15 years of current U.S. practices, funding and outreach in the crime victims’ field.
“Today’s announcement marks the latest step forward in the Department’s ongoing work to protect and empower those who have been victimized,” said Attorney General Eric Holder. “Through Vision 21, we’ve gained an unprecedented understanding of the current state of victim services from coast to coast. And we've developed groundbreaking strategies for responding to urgent needs, combating violence and abuse, and providing critical support to crime victims.”
Vision 21 documents the need to better understand who is affected by crime, how they are affected, how they seek help, who reports victimization and the reasons why some victims do not. The report calls for continuous, rather than episodic, strategic planning in the victim assistance field and for statutory, policy and programmatic flexibility to address enduring and emerging crime victim issues. It also calls for the development of evidence-based knowledge founded on data collection and analysis of victimization and emerging victimization trends, services, behaviors and enforcement efforts.
“This is a bold and creative plan to meet the needs of crime victims in the 21st century,” said Assistant Attorney General for OJP Karol V. Mason. “The recommendations in this report display the latest and best thinking in the field of victim services and set us on a course to ensuring services for all victims. I am grateful to my Principal Deputy Assistant Attorney General Mary Lou Leary and OVC’s Principal Deputy Director Joye Frost for leading Vision 21 and for their commitment to victims across the country.”
Leary and Frost previously joined Patrick Leahy, President Pro Tempore of the U.S. Senate, on April 24, to announce the framework for this report. For the Vision 21: Transforming Victim Services Final Report, please visit: www.ovc.gov/vision21.The Office of Justice Programs, headed by Assistant Attorney General Karol V. Mason, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six components: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. For more information about OJP, please visit: www.ojp.gov.
Jamican national Pleads Guilty to defauding Hundreds of Senior Citizens in Jamaican Lottery ScamRead the Press Release
James L. Santelle, the United States Attorney for the Eastern District of Wisconsin, announced that O’Brain J. Lynch (age 28) of Jamaica, pleaded guilty to wire fraud, in violation of 18 U.S.C. § 1349 and 2. He faces a maximum of 20 years in prison and a fine of up to $250,000. Lynch is believed to be the first Jamaican national charged in the United States for this type of fraud.
A Jamaican Lottery Scheme is a form of mass-marketing fraud committed via the internet, telemarketing, or mass mailings. Jamaican criminal organizations contact victims and identify themselves as lawyers, government officials, law enforcement agents, or lottery company officials. The potential victims are led to believe they won an international multi-million dollar lottery. The fraudulent telemarketers then inform the victims that in order to receive their winnings the victim needs to pay an advance fee. This fee is usually described as a tax, insurance payment, or customs duty that must be paid to release the winnings. The victims are instructed to send the funds via mail or wire transfer.
The scammers routinely involve victims to help facilitate the laundering of financial transactions by receiving and withdrawing funds from prepaid cards and receiving and sending wire transfers. In an attempt to conceal and layer the proceeds from the lottery scams, the scammers direct victims to send funds, knowingly and unknowingly, to other victims and associates of the scammers within the United States. These victims and co-conspirators then transfer the proceeds of this fraud to the scammers in Jamaica by wire transfers. The Jamaican criminal organizations have modified the lottery scam into other variations of telemarketing schemes to include redirecting individuals Social Security Administration (SSA) benefits, direct deposit, automatic debit, re-routing schemes and other identity theft schemes.
According to documents filed in court, in March 2012, the SSA learned that a social security recipient, from Glendale, Wisconsin, was receiving social security benefits in the name of other recipients and cashing in these benefits. Special Agents from the SSA - Office of Inspector General (OIG) discovered the recipient was sending this money to Jamaica because he believed he had won “The Jamaican Lottery.” He said he was contacted by an official from Global International who informed him that he won $2.5 million and two (2) Mercedes Benz vehicles in a sweepstakes. He was then advised that in order for him to collect the money and the cars, he had to pay taxes, customs duty, and other fees. He initially sent his own money to Jamaica, and, once he had depleted his own assets, he was directed, by telephone, to accept checks, Direct Express cards, and other cash value cards in the names of other people (who were also victims), cash them out and then send the money to Jamaica. As a result, numerous victims did not receive their social security benefits, and instead they were mailed to Jamaica. Investigators from SSA discovered that hundreds of victims throughout the United States were losing their social security benefits and their life savings either because they believed that they had won “The Jamaican Lottery” or because, as part of another telemarketing scheme, they revealed enough information about themselves that allowed the thieves to fraudulently divert their money.
SSA -OIG, the Postal Inspection Service (USPS) and Homeland Security Investigations (HSI) joined forces, and were able to identify O’Brain Lynch, as being one of the principal individuals involved in this scheme in Jamaica. HSI reported that Lynch is a resident of Montego Bay, Jamaica, and formerly was a lawful permanent resident of the United States. HSI learned that Lynch and his girlfriend were coming to the United States for a vacation. Lynch was arrested in February 2013.
Numerous records showed that Lynch and his co-actors were involved in a massive telemarketing scheme involving hundreds of victims. They would identify vulnerable victims, and change the recipients’ addresses to a third party. They then had the third party send the money to Jamaica or to others in the United States, who would then wire the money to Jamaica. At the direction of Lynch (and other working with him) numerous victims received SSA Direct Express, netSpend, Green Dot, and other types of cash value cards in the names of other victims. In addition, items were ordered in the United States by Lynch and his co-actors and were paid for using money fraudulently obtained through the scheme. These items, including jewelry, cell phones, a computer tablet, various electronics and other items were received by victims or other co-actors in the United States, and then sent to Jamaica where they could not be traced or recouped. Many of these items have now been linked directly to Lynch.
As part of his plea agreement, Lynch has agreed to pay at least $100,000 in restitution. The restitution amount will be determined by the court at the time of sentencing. Special Agent in Charge William Cotter of the Social Security Administration, Office of Inspector General said, "The arrest and conviction of Obrain Lynch is a significant breakthrough in our investigation into this Jamaican Lottery Scheme, which has redirected millions of dollars in senior citizens' retirement benefits to thieves' accounts opened for the purpose of stealing this money. Lynch was a major organizer of this scam and he personally received or was responsible for defrauding hundreds of thousands of dollars from very vulnerable senior citizens. The Inspector General's Office for the Social Security Administration has worked very closely in this case with Homeland Security Investigations and the Postal Inspection Service and we will continue our collaborative effort to arrest and prosecute additional people involved with this scheme."
"Unscrupulous scam artists prey on the vulnerabilities of others and are solely motivated by greed," said Homeland Security Investigations Chicago Special Agent in Charge Gary Hartwig. "We will continue to work with our partners in Jamaica and other law enforcement agencies to put these criminal enterprises out of business. However, the best defense is to be very suspicious of anyone who asks for money up front so you can collect a lottery prize."
"Americans have lost millions of dollars to criminals from countries around the world in foreign lottery scams, said Pete Zegarac, Inspector in Charge, Chicago Division U.S. Postal Inspection Service. When one family member is harmed by a foreign lottery scam, the impact is felt by all. Losses can be monumental, sometimes entire life savings are wiped out. The United States Postal Inspection Service will continue to partner with the Inspector General's Office for the Social Security Administration and Homeland Security Investigations, as well as other law enforcement agencies, regulatory agencies and the financial industry to combat cross border fraud targeting U.S. consumers, particularly the elderly. The Postal Inspection Service will continue to aggressively investigate these crimes and arrest people like Lynch, who ruthlessly exploit American consumers."
This matter was investigated by special agents from the Social Security Administration - Office of Inspector General, the Postal Inspection Service and Homeland Security Investigations. The case is assigned to Assistant United States Attorney Karine Moreno Taxman for prosecution.
Indian National Convicted for Resisting Deportation OrdersRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that a federal jury found Pal Sat, 42, of India, guilty of two counts of impeding or hampering his deportation. United States District Judge Dee D. Drell presided over the trial.
The defendant’s trial started Thursday and ended this afternoon with the jury returning the guilty verdict after deliberating for 45 minutes. Witness testimony and documents admitted at trial revealed that on Sept. 12, 2012 and Oct. 16, 2012, U.S. Immigration Enforcement Agents (IEA) brought the defendant to the Alexandria International Airport and attempted to put him on a commercial flight. The defendant began verbally and physically resisting officers, which prevented him from boarding the flight because of airline and Transportation Security Administration policies.
"The defendant’s actions showed that he had little respect for the law in this matter,” Finley stated. “His refusal to comply with lawful deportation orders on multiple occasions caused unnecessary cost to the taxpayers.”
Sat faces four years in prison, a $250,000 fine, and three years of supervised release for each count. Sentencing has been set for Sept. 27, 2013.
The Immigration and Customs Enforcement - Enforcement and Removal Operations conducted the investigation. Special Assistant U.S. Attorney Robert J. France and Assistant U.S. Attorney Robert W. Gillespie Jr. are prosecuting the case.Harrold Man Charged with Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a Harrold, South Dakota man has been indicted by a federal grand jury.
Thomas Morgan, age 37, was indicted by a federal grand jury on October 16, 2012 for Assault with a Dangerous Weapon. Morgan appeared before U.S. Magistrate Judge Mark A. Moreno on June 4, 2013 and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release, an additional 2 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation, and Morgan is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs and Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Morgan was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Hanson Pipe & Precast to Pay $500,000 to Settle False Claims Act AllegationsRead the Press Release
Hanson Pipe & Precast, headquartered in Irving, Texas, has agreed to pay the United States $500,000 to settle False Claims Act (“FCA”) allegations, announced David Rivera, Acting United States Attorney for the Middle District of Tennessee.
The settlement resolves allegations that Hanson submitted false claims for payment to the United States for products that did not meet required specifications. These products included concrete end walls and catch basins that are typically used in and adjacent to roadway construction.
The United States alleged that Hanson submitted these claims after repeatedly certifying that its products were in reasonable compliance and were produced pursuant to applicable procedures. The investigation found, however, that many of the products did not meet specifications as they related to the strength and placement of rebar within the pre-cast products. Although Hanson provided these products for projects primarily administered by the Tennessee Department of Transportation, a substantial portion of the funding for these projects was provided by the United States through the Federal Highway Administration, an agency within the U.S. Department of Transportation (“DOT”).“Enforcement of the False Claims Act remains a top priority of the Department of Justice and this office,” said Acting U.S. Attorney David Rivera. “This enforcement effort extends to all efforts to procure funds from the United States and its agencies by false pretenses. The U.S. Attorney’s Office for the Middle District of Tennessee will continue to devote the resources necessary to vigorously protect taxpayers’ interests and aggressively pursue fraud, waste, and abuse.”
“The settlement announced today is a strong message to those that would seek to substitute inferior products in transportation-related projects that we will leave no stone unturned to ensure the safety of the Nation’s transportation system,” said DOT OIG Regional Special Agent in Charge Marlies Gonzalez. “DOT OIG remains committed to working with our law enforcement and prosecutorial colleagues, and other Federal and state partners to prevent and detect waste, fraud, and abuse.”
The federal investigation examined conduct originally discovered by the Tennessee Department of Transportation. An efficient and thorough investigation allowed a resolution to be achieved without filing a complaint, conserving judicial resources and government funds. The settlement was consummated with the understanding that the U.S. Department of Transportation, Federal Highway Administration, may take additional steps in its discretion and pursuant to the applicable regulations to require Hanson to adopt compliance measures to reduce the likelihood of future violations of the FCA and other procurement regulations.
This matter was investigated by the Department of Transportation and the United States Attorney’s Office for the Middle District of Tennessee. The United States was represented by Assistant U.S. Attorney Christopher C. Sabis.Gainesville Accountant Sentenced to 72 Months in Prison for Wire Fraud and Tax EvasionRead the Press Release
ALEXANDRIA, Va. – Melvin Mooring, 54, of Gainesville, Va., was sentenced today to 72 months in prison, followed by three years of supervised release, in connection with the theft of approximately $3.3 million from a Chantilly, Va., company where Mooring served as the chief financial officer. Mooring was also ordered to pay $3,541,003.57 in restitution to his victims.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division; and Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation, made the announcement after sentencing by United States District Judge Liam O’Grady. Mooring pleaded guilty to wire fraud and tax evasion charges on March 8, 2013.
From 2000 to 2011, Mooring served as the chief financial officer, or CFO, of K&R Industries, a private company in Chantilly, Va. According to court records, from 2004 to 2011, Mooring stole approximately $3.3 million from the company via company checks and wire transfers, which he routed through the bank account of a company he controlled in order to conceal their fraudulent nature. Mooring also altered company financial statements to conceal the fraud. Mooring used the funds for a luxurious home, travel, jewelry, and a BMW automobile, and to generally fund a comfortable lifestyle.
Mooring also failed to report the stolen funds as income on his individual income tax returns for the years 2005 through 2010, resulting in approximately $865,426 in losses to the United States Treasury.
This case was investigated by IRS Criminal Investigation. Assistant United States Attorney Paul J. Nathanson and Tax Division Trial Attorney Tracy L. Gostyla prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Fort Thompson Man Pleads Guilty to Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that Myron Touche, Sr., age 43, of Fort Thompson, South Dakota appeared before U.S. District Judge Roberto A. Lange on June 4, 2013 and pled guilty to Assault with a Dangerous Weapon.
The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release; an additional 2 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from an incident wherein Touche, on November 10, 2012, went to the trailer house of his niece and her boyfriend. Two individuals were arguing in the back bedroom, and Touche confronted them. He then grabbed a gun that was by the front door and pointed it at the victim. The victim and another individual were able to wrestle the gun away from Touche. The victim was sober, but the rest had been drinking.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Touche was remanded to the custody of the U.S. Marshals Service pending sentencing which has been set for August 26, 2013.
Former Tallahassee Resident Arrested for Tax FraudRead the Press Release
TALLAHASSEE, FLORIDA – Jerry Samuel Joseph, 33, who has also been known as “Gerry Jeudy,” “Jeremiah Pericles,” and “Jay,” was arrested this morning in Brooklyn, New York, on charges arising from a scheme to defraud the Internal Revenue Service. Joseph was a Tallahassee resident until approximately 2009.
According to an indictment returned by a federal grand jury in Tallahassee, Joseph and others filed fraudulent tax returns using stolen identities to claim approximately $350,000 in federal income tax refunds, with refund checks to be issued to an address in Tallahassee. Joseph is charged with conspiring to defraud the IRS, converting government property, mail fraud, and aggravated identity theft. Joseph has been ordered detained in New York, and will be removed to custody in Tallahassee in the near future.
If convicted, Joseph faces up to 10 years in prison for the conspiracy and conversion counts, up to 20 years for mail fraud, and a mandatory consecutive term of two years in prison for aggravated identity theft.
The case has been investigated by IRS Criminal Investigation, the United States Secret Service, and the United States Postal Service. The case is being prosecuted by Assistant United States Attorney Michael T. Simpson.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Reserve Deputy Constable Convicted for Aiding Cocaine LoadRead the Press Release
HOUSTON – Tomas Roque, a former reserve deputy constable with Harris County Precinct 6, has entered a plea of guilty to one violation of the Hobbs Act, or extortion under color of official right, United States Attorney Kenneth Magidson announced today.
Roque, of Houston, was arrested Jan. 16, 2013, following the return of an indictment Jan. 8, 2013. As part of his plea today, Roque admitted he obtained approximately $2000 in exchange for providing protection for a vehicle he believed was transporting seven kilograms of cocaine.
According to the plea agreement, a confidential source had asked Roque if he would provide protection for narcotics. On Dec. 6, 2012, Roque - then a Precinct 6 constable in Harris County – arrived in uniform to provide the escort in his official capacity as a law enforcement officer.
Seven kilograms of cocaine was located in the truck of the source which Roque had escorted to another location. Afterwards, the source paid Roque $2000 for his service.
U.S. District Judge Vanessa Gilmore, who accepted the guilty plea, has set sentencing for Sept. 16, 2013, at which time Roque faces up to 20 years in prison and a possible $250,000 fine. He was permitted to remain on bond pending that hearing.
The combined public corruption task force effort was conducted by the FBI, Texas Rangers and Houston Police Department. Homeland Security Investigations and the Harris County Precinct 6 Constable’s Office assisted the investigation. The case is being prosecuted by Assistant United States Attorney James McAlister.
Former North Carolina House of Representative Convicted for Theft from A Non-Profit and Money LaunderingRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced today that, STEPHEN A. LAROQUE, of Kinston, North Carolina, was convicted by a federal jury on all 12 counts involving theft from a Non-Profit receiving federal funds, money laundering, false statements to cover up a scheme, and filing false tax returns.
Walker stated, “We always thought that this case was about stealing, pure and simple. The jury has now agreed.”
Special Agent in Charge Jeannine A. Hammett, Internal Revenue Service Criminal Investigation stated, "Mr. Laroque improperly used money belonging to a non-profit organization and he illegally concealed his actions.”
Investigation of this case was conducted by the Internal Revenue Service - Criminal Investigation, the United States Department of Agriculture, Office of Inspector General-Investigations, Raleigh Office, the Federal Bureau of Investigation and the North Carolina State Bureau of Investigation. Assistant United States Attorney, Dennis M. Duffy prosecuted the case.
Former Luzerne County Man Sentenced to Prison for Failing to Update Sex Offender RegistrationRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a 50-year-old former resident of Luzerne County was sentenced to 13 months in federal prison Thursday by Senior U.S. District Court Judge Richard P. Conaboy for failing to update his sex offender registration.
According to United States Attorney Peter J. Smith, Joseph Hannel previously pleaded guilty to moving from Luzerne County, Pennsylvania, where he was registered as a sex offender, to Virginia without notifying authorities in both states as required by law. Hannel was required to register as a sex offender and update that registration after serving a state prison sentence for involuntary deviate sexual intercourse and sexual abuse of children.
Hannel was indicted by a federal grand jury in October 2012, as a result of an investigation by the U.S. Marshal’s Service.
Judge Conaboy also ordered Hannel to be placed on supervised release for five years after serving his prison sentence. Hannel must also pay a $100 special assessment.
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 internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Former Ladue Financial Advisor Pleads Guilty to Federal Fraud ChargesRead the Press Release
St. Louis, MO - Greg J. Campbell pled guilty to diverting over $1.8 million from client retirement accounts to finance his luxury home, cars and lifestyle.
According to court documents, from June 2006 until October 2011, Campbell was employed as a financial advisor at Merrill Lynch. Campbell managed clients’ Loan Management Accounts (LMAs), which were lines of credit collateralized by securities. Beginning in September 2007 and continuing until the end of his employment in October 2011, Campbell fraudulently diverted more than $1.4 million from LMAs to his own personal accounts and the accounts of others and for his own personal use. He used the money for a down payment on a personal residence, mortgage payments, lease payments on luxury vehicles and living expenses.
In November 2011, Campbell began working as a Senior Wealth Manager for Four Seasons Wealth Management (Four Seasons) in Clayton. Four Seasons was a company that offered securities and advisory services to clients through LPL Financial, LLC, a securities broker-dealer (LPL). Campbell was employed at Four Seasons until October 2012 and managed clients' individual retirement accounts (IRAs). Between November 2011 and October 2012, Campbell diverted funds from his clients' IRAs to his own personal accounts. Campbell took various steps to conceal his fraud. He changed the mailing addresses on clients' accounts, without their knowledge, to an address to which he had access so that clients would not receive account statements. In at least one instance, Campbell falsely stated on distribution documents that he was the client's grandson, when he was not related to the client. During his tenure at Four Seasons, Campbell fraudulently diverted more than $360,000 from client accounts. Campbell used fraudulently diverted funds to pay for personal expenses, including renovations to his personal residence, mortgage payments, vehicle lease payments and living expenses.
GREG J. CAMPBELL, Ladue, MO, pled guilty to two felony counts of wire fraud before United States District Judge Audrey G. Fleissig. Sentencing has been set for September 10, 2013.
Each count of wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney’s Office.