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5 June 2013
Joliet Man Sentenced to 10 Years in Prison for Setting Fire in 2007 to Home of Neighboring African-American FamilyRead the Press Release
CHICAGO — An admitted white-supremacist was sentenced today to the maximum of 10 years in federal prison for violating the civil rights of an African-American family whose home he set on fire after they moved onto his block in 2007. The defendant, BRIAN JAMES MOUDRY, pleaded guilty in January of this year and agreed to the 10-year sentence, admitting that at approximately 4 a.m. on June 17, 2007, he carried a can containing gasoline to the home, splashed the gasoline on the residence and ignited it. No one was injured, although the home was occupied by eight children, ranging in age from 4 to 14, and an adult at the time of the fire.
Moudry, 36, formerly of the 300 block of South Reed Street, Joliet, pleaded guilty to using fire to interfere with the victims’ housing rights on the basis of race. He has been in federal custody since he was arrested on May 30, 2012. U.S. District Judge Robert Gettleman imposed the agreed maximum sentence and ordered Moudry to undergo mental health and substance abuse treatment. He also ordered Moudry to pay $7,108 in restitution to cover damage to the residence and to reimburse the Joliet Fire Department.
“This was an exceptionally despicable crime motivated by hate. The victims of the arson did nothing, but move into a new residence in Joliet. Unbeknownst to the victims, several houses down lived a white supremacist who never knew the victims but hated them because they were African American,” the government argued in a sentencing memo.
“There is nothing we do as federal prosecutors that’s more important, not to mention more satisfying, than vindicating the rights of our fellow citizens, whatever their race, ethnicity, or religious background, to live in peace and security,” said Gary S. Shapiro, United States Attorney for the Northern District of Illinois.
“One of the FBI’s top priorities is safeguarding the rights of all Americans. This case demonstrates our commitment to investigate and bring to justice those whose hatred of others leads them to violate civil rights,” said Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
In pleading guilty, Moudry admitted that he was upset that an African-American family rented a house at 318 South Reed St., in May 2007 on the same block as his house. He admitted that he set the fire because African-Americans were occupying the home, and that he intended to interfere with their continued ability to rent the residence and to intimidate the owner from continuing to rent to African-Americans.
The government was represented by Assistant U.S. Attorneys Nancy DePodesta and Steven Dollear.
Individual Arrested for “Sextortion” in Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico — On Tuesday, June 4, 2013, Jimmy Caraballo-Colón was arrested in Caguas, for coercing a female minor to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct (production of child pornography), announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. This arrest followed an investigation from U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Cyber Crimes Unit in Puerto Rico and Colorado, and officers assigned to the Puerto Rico Crimes Against Children Task Force (PRCACTF).
Jimmy Caraballo-Colón, a 25 years-old summer camp counselor who teaches cheerleading to minors, was engaging in a new modality of sexual blackmailing called “sextortion” with a 17 year-old female minor from the State of Colorado. According to the investigation, Caraballo-Colón met the minor in an anonymous internet video chat website. During the chat, Caraballo-Colón offered the minor game “points” for removing her clothes. The defendant then proceeded to blackmail the minor by threatening to post the nude recording in the internet if the minor did not provide her personal information such as her phone number, email address, Skype address and Facebook account. Despite the fact that the minor complied with Caraballo-Colon’s request, the “sextortion” escalated as he demanded more sexually explicit acts during the video chats, including masturbation, which he also recorded.
On June 4, 2013, a Search Warrant was executed at Caraballo-Colon’s residence in Caguas, where he was subsequently detained. He was charged in a Complaint with production of child pornography. He was brought before U.S. Magistrate Judge Bruce J. McGiverin for his initial appearance on June 4, 2013 and was ordered temporarily detained.
If convicted, the defendant faces a mandatory minimum sentence of not less than 15 years of incarceration. This case is being prosecuted by Assistant U.S. Attorney Elba Gorbea.
“Unfortunately, our community has witnessed a dramatic increase in child pornography and child abuse through the internet. Predators, often disguised as peers and responsible adults, groom and befriend unsuspecting and innocent child victims to perform sexually explicit acts.” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. “Today’s complaint is a strong and clear message to predators and criminals that we will not accept tolerate this conduct ways, and will hunt them down to make sure they face justice and respond for their criminal behavior. The Federal Law Enforcement Community and the U.S. Attorney’s Office will spare no resources to arrest and prosecute these predators. Nonetheless, the community, teachers and parents must be vigilant and proactive with our children and educate them on the modus operandi of these offenders”
“Child exploitation, in all its forms, must be among the most heinous crimes a person can commit, but when the element of sextortion is part of this unspeakable exploitation, the aberration is even more nauseating and the emotional pain inflicted on the victim is just overwhelming and hard to endure,” said Angel Melendez, special agent in charge of HSI San Juan. “Make no doubt, HSI will continue utilizing all its resources and, along with our federal, state and local partners, we will continue identifying those who victimize the most vulnerable segment of our society—our children.”
In response to the need for an island-wide approach to fighting the escalation of predatory crimes against children, HSI San Juan partnered with members of local, state and federal law enforcement, as well as local and state government officials and community leaders, to form PRCACTF in June 2011.
Through PRCACTF, local, state and federal law enforcement agencies work together with local and state government agencies to effectively pool their resources to jointly investigate all crimes against children in Puerto Rico. Through the task force, law enforcement officers are encouraged to share evidence, ideas, and investigative and forensic tools to ensure the most successful prosecutions possible. As such, PRCACTF allows law enforcement to speak with one unified voice in defense of the children of Puerto Rico.
Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-843-5678.
Indictments Returned in Hammond Federal CourtRead the Press Release
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana- The United States Attorney’s Office announced that the following Indictments were returned on June 5, 2013:
Jeffrey Williams, 29, of Gary, Indiana, was charged with two counts of distribution of heroin and one count of possession with the intent to distribute crack cocaine.These charges were filed as the result of an investigation by the Drug Enforcement Administration and the Lake Station Police Department.This case has been assigned to and will be prosecuted by Assistant United States Attorney Thomas McGrath.
Christopher M. Bour, 39, and Natisha Hillard, 24, of both of Gary, Indiana, were each charged in a superseding indictment with two additional counts of production of child pornography.Bour was also charged with one additional count of possession of child pornography.Bour was charged in the initial indictment with one count of purchase of a child and Hillard with one count of sale of a child. This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the Federal Bureau of Investigation, the Indiana State Police, the Gary Police Department and the Michigan City Police Department.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jill Koster.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Indictments Charging Twenty-Three People with Drug TraffickingRead the Press Release
The United States Attorney's Office for the Middle District Pennsylvania announced the filing of indictments returned by a federal grand jury in Scranton on May 21 and June 4, 2013, charging a total of 23 persons with offenses related to trafficking in controlled substances, including heroin.
According to United States Attorney Peter J. Smith, the indictments resulted from lengthy investigations by the United States Drug Enforcement Administration, Pennsylvania State Police, Wilkes-Barre City Police Department, and the Hanover Township Police Department into drug trafficking organizations involved in heroin distribution in the City of Wilkes-Barre.
The following individuals were indicted for their alleged roles in drug trafficking conspiracies and related offenses: Corey Arnott, 21, Ashlee, PA; Marvin Fitts, 37, Archbald, PA; Angelo Hardy, 41, Hanover Township, PA; Dawan Ingram, 25, Wilkes-Barre, PA; Lamar Johnson, age unknown, Wilkes-Barre, PA; Michael Scott, 21, Wilkes-Barre, PA; Dwayne Webb, age unknown, Wilkes-Barre, PA; Anthony Wilson, 25, Wilkes-Barre, PA; Anthony Rajohn Wilson, 31, Wilkes-Barre, PA; Derrick Wilson, 36, Edwardsville, PA; Lamont Wilson, 32, Wilkes-Barre, PA; Steven Wilson, 24, Glen Lyon, PA; William Wilson, 54, Edwardsville, PA; Teresa Bradigan, 31, Scranton, PA; Alejandro Delrosario, 28, Butler Township, PA; Christopher Gayton, 31, Wilkes-Barre, PA; Zackarae Lowe, 31, Wilkes-Barre, PA; Justin Murphy, 29, Scranton, PA; Richard Murphy, 30, Maryland; Damon Murray, 35, Wilkes-Barre, PA; Michael Murray, 36, Maryland; William Patterson, 30, Wilkes-Barre, PA; and Ashlee Taylor, 27, Maryland.
“Today, a big step has been taken to make Wilkes-Barre a safer place” said Drug Enforcement Administration (DEA) Special Agent in Charge, David G. Dongilli. The DEA, along with local, state and federal counterparts culminated a six-month long investigation of a violent heroin and cocaine drug trafficking organization operating throughout the region. SAC Dongilli further stated, “The DEA will bring every resource at our disposal to pursue and bring to justice those who, without conscience distribute this poison into our communities”.
Prosecution is assigned to Assistant United States Attorney William S. Houser.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In these particular cases, the statutory maximum penalty for the most serious offenses charged against some defendants is life imprisonment and a fine. Some defendants also face mandatory minimum periods of incarceration of ten years. Under the Federal Sentencing Guidelines, the Judge is required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
* * * *Indiana County Man Pleads Guilty in Embezzlement SchemeRead the Press Release
PITTSBURGH - A resident of Indiana County, Pennsylvania, pleaded guilty in federal court to a charge of conspiracy, United States Attorney David J. Hickton announced today.
Daniel Pikel, 57, of Home, Pa., pleaded guilty to one count before United States District Judge Terrence F. McVerry.
In connection with the guilty plea, the court was advised that between 2009 and 2012, Daniel Pikel conspired with another person to conceal through his business banking account approximately $2.9 million in funds embezzled by former company controller, Cheryl Brooks, and another former company officer, from Falcon Drilling, LLC, a drilling contractor located in Indiana, Pa.
Judge McVerry scheduled sentencing for Aug. 22, 2013. The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Postal Inspection Service, the U.S. Internal Revenue Service, Criminal Investigation and the Pennsylvania State Police in Indiana, Pennsylvania, conducted the investigation that led to the prosecution of Daniel Pikel.
Illegal Alien, Nestor Murcia-carpio, Sentenced for Illegal Use of A Social Security Number, Making A False Claim to U.s. Citizenship and Making False Statements on A Passport ApplicationRead the Press Release
NESTOR MURCIA-CARPIO, age 35, a citizen of Honduras, was sentenced today in federal court by U. S. District Judge Helen G. Berrigan to approximately eight months imprisonment, announced U. S. Attorney Dana Boente. In addition to the term of imprisonment, Judge Berrigan ordered that MURCIA be placed on one year of supervised release following his term of imprisonment, during which time the defendant will be under federal supervision and risk an additional term of imprisonment should he violate any terms of supervised release.
According to court documents, on March 27, 2013, MURCIA pled guilty to a three-count superseding bill of information admitting that on July 7, 2009, he falsely represented that a Social Security number had been assigned to him by the Commissioner of Social Security with intent to deceive, for the purpose of obtaining a Louisiana Identification Card at a Louisiana Office of Motor Vehicles located in Houma. MURCIA also admitted that he falsely represented himself to be a citizen of the United States on October 14, 2009, when he filed an application for a Louisiana Driver’s License at the Office of Motor Vehicles in Houma when, in fact, he was illegally present in the United States. MURCIA further admitted that he knowingly made false statements in a United States passport application by providing a false name, date of birth, place of birth, and Social Security Number, to secure the issuance of a United States Passport for his own use on or about October 8, 2010.
This case was investigated by Special Agents of Homeland Security Investigations with the assistance of the Louisiana State Police and the United States Department of State, Diplomatic Security Service. The prosecution was handled by Special Assistant United States Attorney Robert Weir.
Houston, Texas Area Men Convicted in $68 Million FraudRead the Press Release
Montgomery, Alabama - George L. Beck, Jr., United States Attorney for the Middle District of Alabama, announced today that:
- Steven P. Mock, age 69, of Houston, Texas, and Frank J. Teers, age 50, of Montgomery, Texas, were convicted on June 4, 2013 of federal conspiracy, wire fraud, and bank fraud charges after a two-week jury trial.
- Paul Hulse, Sr., age 65, of Kingwood, Texas, pled guilty to an information charging interstate transportation of property obtained by fraud.
The recent convictions of Hulse Sr., Mock, and Teers follow the June 5, 2012 guilty plea of Paul Hulse, Jr. to an information charging conspiracy to make a false statement to a bank.
According to court filings, Paul Hulse, Sr. (“Hulse”) was a director of H&H Worldwide Financial Service, Inc., Paul Hulse, Jr. (“Hulse Jr.”) was H&H’s president, Steven P. Mock was an attorney in the Houston area, and Frank J. Teers was a bond broker employed by Tri-Star Financial Services in Houston. Beginning in 2003, Hulse began soliciting various persons and businesses for loans based on the false representation that he controlled a large portfolio of bonds—the amount ranged from tens to hundreds of millions of dollars—that could be used as collateral for the loans. Mock and Teers made false statements to the prospective lenders that supported Hulse’s claim that he owned a substantial bond portfolio. In fact, Hulse did not have a bond portfolio. None of the solicited institutions, which included Western National Bank of Midland, Texas, MetLife, UBS Securities, and Jefferies and Co. agreed to make a loan to Hulse or H&H.
In February 2005, Hulse began soliciting loans from the Federal Land Bank of South Alabama (the “Bank”) in Montgomery, Alabama. During the course of the discussions:
- Hulse falsely represented that he had a large bond portfolio that could serve as collateral for the loans to H&H and submitted documents that concealed Hulse’s plan to use approximately half the loan proceeds to purchase the bonds that were going to serve as collateral for the loans.
- Mock falsely claimed that he was Hulse’s “senior trust officer” and that the “trust agreements” permitted the use of $15 million of trust bonds in connection with the proposed loan.
- Teers falsely represented that he managed a significant bond portfolio for Hulse, provided documents to Hulse that Hulse used to support his claim of ownership, signed documents that represented that bonds were on account at Tri-Star, and failed to disclose to the Bank and to Tri-Star that he had been interviewed by IRS criminal investigators about Hulse’s fraudulent activities.
The Bank made two loans to H&H totaling $68.5 million in August and December 2005. H&H used more than half the money to buy the bonds that were to serve as collateral for the loan. A significant amount of the loan proceeds were used for the personal benefit of Mock, Hulse, and members of the Hulse family. Teers made more than $600,000 in commissions from the buying and selling of bonds on behalf of H&H. By Spring of 2007, the relationship between H&H and the Bank had deteriorated. In an effort to convince the Bank to allow the principal of the bonds to be used to make the quarterly loan payment, on June 28, 2007, Mock, Hulse, and Hulse Jr. sent a letter to the Bank that (a) falsely claimed that H&H was on the “doorstep” of obtaining a loan from Wells Fargo that would allow the Bank to be paid in full, and (b) described how the loan proceeds had been used without disclosing the fact that more than half the loan proceeds had been used to buy the bond collateral.
“Protecting the people who entrust their money in our banks, credit unions and other financial institutions is essential to a healthy economy,” stated U.S. Attorney George L. Beck, Jr.. “My office will continue work diligently to protect the people who entrust their money to these banks and credit unions. Those criminals who commit frauds and attempt to commit frauds on the banks in the State of Alabama will be prosecuted to the fullest extent of the law.”
“The FBI will continue to ensure that those in a fiduciary position who solicit and handle other people’s money exercise their duties based on legal parameters and obligations, not fraudulently with an intent to illegally profit from their illegal schemes and deceit,” stated Stephen Richardson, FBI Special Agent in Charge, Mobile Field Division.
Mock and Teers face a statutory maximum sentence of 30 years imprisonment per count. Hulse Sr. faces a maximum prison sentence of 10 years; Hulse Jr. faces up to five years. Hulse Jr.’s sentencing is set for August 6, 2013. Sentencing for Mock, Teers, and Hulse Sr. has been scheduled for August 21, 2013.
The case was investigated by the FBI and was prosecuted by Assistant United States Attorneys Andrew O. Schiff and Denise O. Simpson. Assistance was also provided by the Internal Revenue Service, Criminal Investigations in Houston, Texas.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Hermitage Couple Charged with Defrauding the IRSRead the Press Release
PITTSBURGH - A Mercer County couple have been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on charges of conspiracy, making or subscribing a false tax return, and aiding and assisting the making or subscribing of a false tax return, United States Attorney David J. Hickton announced today.
The 10-count indictment, returned on June 4, 2013, named Eric Graven and Barbara Graven of Hermitage, Pa., as the defendants.
According to the indictment, Barbara Graven, the President of Custom Stone and Tile, Inc., and her husband, Eric Graven, the Vice President and co-owner of Custom Stone and Tile, Inc., located in Hermitage, Pa., conspired with each other and other persons to defraud the Internal Revenue Service by intentionally failing to report cash earnings of the business in each of the calendar years 2005 through 2008, thereby avoiding the payment of income tax due and owing on such earnings. The indictment further charges Barbara Graven and Eric Graven with preparing and filing, or aiding and assisting in the preparation and filing, false individual and corporate income tax returns for each of the calendar years 2006 through 2008.
The law provides for a maximum total sentence of 23 years in prison, a fine of $1,750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Internal Revenue Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Four Men Indicted in 75-Liter Methamphetamine SeizureRead the Press Release
Hid Liquid Meth Inside of Vehicle Gas Tank
ATLANTA - Gabriel Jimenez Antunez, Pablo Saucedo Aparicio, Martin Ascencio, and Javier Munoz Ruiz have been indicted on federal drug and money laundering charges for their roles in the delivery of liquid methamphetamine to a residence in Austell, Ga.
“A seizure of this size reminds us that Atlanta continues to serve as a focal point for the distribution of methamphetamine,” said United States Attorney Sally Quillian Yates. “Law enforcement agents in our community are doing a remarkable job tracking down and seizing drugs before they can be distributed into our communities.”
“Methamphetamine continues to ravage many communities in our nation,” said Harry S. Sommers, Special Agent in Charge of the DEA Atlanta Field Division. “Because of the positive results yielded in this case, other methamphetamine traffickers in the Atlanta metropolitan and surrounding areas are being put on notice that DEA and its law enforcement partners will not tolerate their continued efforts to manufacture and distribute this insidious drug.”
“The attack on money laundering is an essential front in the war on narcotics,” stated Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “We are proud to have contributed our financial expertise in order to dismantle the drug-trafficking operation that has been targeting the metro Atlanta citizens.”
According to United States Attorney Yates, the charges and other information presented in court: In May 2013, DEA and IRS agents learned that Jimenez, a local distributor for a Mexican drug trafficking cartel, was coordinating the delivery of a shipment of liquid methamphetamine to the metro-Atlanta area and laundering the proceeds of that drug trafficking activity. In the early morning hours of May 12, 2013, agents tracked the delivery of liquid meth, made by Munoz using a Ford F-350 vehicle, to a residence in Austell, Ga.
Agents determined that the liquid methamphetamine was stored inside the truck’s gas tank, and observed Jimenez, assisted by Saucedo, arrive at the location with thermoses, which were to be used to transfer and store the liquid methamphetamine before it was further distributed. Ascencio was in the process of removing the gas tank containing approximately 75 liters of diesel fuel and liquid methamphetamine when agents arrested the defendants and seized the drugs. With assistance from agents at ICE-Homeland Security Investigations, agents executed search warrants at this and related residences, recovering another 10 pounds of crystal methamphetamine and other evidence.
The indictment charges the defendants: Antunez, a.k.a. “Negrito,” 39, of Mexico; Aparicio, 38, of Mexico; Ascencio, 49, of Mableton, Georgia.; and Ruiz, 54, of Fort Worth, Texas, with conspiring to possess with the intent to distribute more than 500 grams of methamphetamine, a charge that carries a sentence ranging potentially from 10 years to life. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Members of the public are reminded that the charging documents and evidence presented in court are only allegations. A defendant is presumed innocent of the charges and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.
This case was investigated by Special Agents of the Drug Enforcement Administration and Internal Revenue Service Criminal Investigation.Assistant United States Attorney Laurel Boatright is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Former Testquest Manager Pleads Guilty to Defrauding Federal Government by Falsely Claiming to Have Provided Tutoring Services That Were Paid for with Federal FundsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that MICHAEL LOGAN, a former manager of TESTQUEST, INC. (“TESTQUEST”), an educational services company that provided tutoring services to public school children as part of a federally funded program, pled guilty in Manhattan federal court for his role in a scheme to defraud the federal government by falsely submitting claims for payment for tutoring services that were never actually provided. LOGAN pled guilty before U.S. District Judge John F. Keenan.
Manhattan U.S. Attorney Preet Bharara said: “The federal government devotes important resources to a program intended to benefit students in need, and not intended to be manipulated by people like Michael Logan for their own benefit. To make matters worse, rather than focusing on the instruction of children, Logan focused on instructing witnesses to lie. With his guilty plea today, he will now face the consequences of his shameful exploitation of this vitally important program.”
According to the Criminal Complaint and Criminal Information filed against LOGAN, and a Civil Complaint that was filed against TESTQUEST and LOGAN earlier this year:
Each year during the time period at issue, 2005 through 2012, the New York City Department of Education (“NYCDOE”) received funds from the federal government to pay for New York City’s Supplemental Educational Services program (“SES”), which included after-school tutoring and other remedial and supplemental academic enrichment services for students attending underperforming public schools. NYCDOE entered into contracts with private entities and organizations to provide SES tutoring to public school students. Students were eligible to receive SES tutoring if they met certain criteria, such as attending a school that had been identified as needing improvement or restructuring for at least two years. Private entities contracted by NYCDOE to provide SES tutoring were required to have each student who attended a class sign a standard attendance form. The tutor was also required to sign the form, attesting to the fact that he or she provided SES tutoring to those students. Further, as a condition of getting paid for providing tutoring, the private entities were required to certify to the NYCDOE that their attendance records were “true and accurate.”
From 2005 through 2012, TESTQUEST contracted with the NYCDOE to provide SES tutoring. It provided individual tutoring to students at their homes and group tutoring at various New York City public schools, including the Monroe Academy of Business and Law/High School of World Cultures (“Monroe”) and the Global Enterprise Academy/Christopher Columbus High School (“Columbus”). TESTQUEST received tens of millions of dollars in federal funding for tutoring during this time period, including more than $2.3 million for purported tutoring at Monroe and Columbus alone.
MICHAEL LOGAN was an employee of TESTQUEST responsible for managing its SES tutoring program at Monroe and later at Columbus. LOGAN also worked as a long-term substitute teacher and computer technician at Monroe and sometimes coached its baseball team. LOGAN instructed TESTQUEST employees to forge student signatures on attendance forms and to have students sign attendance forms for tutoring classes they had not attended. On some occasions, LOGAN caused TESTQUEST employees to fraudulently obtain students’ signatures by collecting them from students assembled in the school cafeteria or participating in afterschool activities such as baseball or basketball practice. For example, LOGAN would direct employees to participate in this fraud by saying, “if you can’t find the students, sign them in,” and “make them sign or you won’t get paid.” Further, when LOGAN learned of the criminal investigation, he coached others to lie. In one recorded conversation, LOGAN encouraged another witness to lie about teaching classes that occurred when he and the witness were actually coaching after-school sports. As a result of LOGAN’s conduct, TESTQUEST employees repeatedly submitted bills to NYCDOE for tutoring that never occurred and for which TESTQUEST was paid substantial sums of money.
LOGAN, 48, of White Plains, New York, pled guilty to one count of conspiracy to defraud the United States and the U.S. Department of Education. He faces a maximum sentence of five years in prison, and is scheduled to be sentenced by Judge Keenan on October 9, 2013. The charges in the Civil Complaint against LOGAN and TESTQUEST remain pending.
Mr. Bharara thanked the U.S. Department of Education’s Office of Inspector General for its extraordinary assistance in this case.
The case is being handled by the Complex Frauds Unit. Assistant U.S. Attorneys Joseph P. Facciponti and Christopher B. Harwood are in charge of the prosecution.
U.S. v. Michael Logan Information
Former Middle Smithfield Township Supervisor Robert Spano Sentenced for Making False Statements in Connection with A Health Care MatterRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Robert Spano, a former Supervisor in Middle Smithfield Township, Monroe County, was sentenced in federal court today by Senior U.S. District Court Judge Richard P. Conaboy to a two-year term of probation with four months to be spent on home confinement with electronic monitoring and must perform 50 hours of community service. Judge Conaboy further ordered that Spano pay $24,488.09 in restitution and a $500 fine.
According to United States Attorney Peter J, Smith, Spano, age 64, while a Supervisor and employee of Middle Smithfield Township, participated in the township’s group health benefit plan administered by Blue Cross of Northeastern Pennsylvania and in the township’s dental care benefits plan administered by United Concordia.
Spano completed health insurance and dental insurance enrollment forms in November 2007 in which he listed his girlfriend, referred to in the indictment as “C.B.,” as his spouse, and as having the last name “Spano,” when in fact her last name was not “Spano,” and she was not his spouse. Spano was still legally married to another person and had filed for divorce from his wife in January 2011.
As a result of Spano’s misrepresentations, Middle Smithfield Township, Blue Cross of Northeastern Pennsylvania, and United Concordia incurred expenses totaling approximately $24,488 for medical and dental services provided to C.B. and for higher health insurance premiums between 2007 and 2010.
Spano was indicted in November 2011 and pleaded guilty in February 2013.
The case was investigated by the Federal Bureau of Investigation and the Northeastern Pennsylvania Insurance Fraud Task Force.
The case was prosecuted by Assistant United States Attorney Robert J. O’Hara
Former Immigration Official Sentenced to 38 Months in Prison for Falsely Passing Immigrants on Citizenship TestsRead the Press Release
SAN FRANCISCO – Abdulaziz Abdulahi Khalil was sentenced, yesterday, to 38 months in prison for accepting kickbacks in exchange for falsely passing citizenship applicants on their United States citizenship tests, United States Attorney Melinda Haag announced.
From 2003 through 2008, Khalil was a District Adjudication Officer (DAO) with the United States Citizenship and Immigration Service (USCIS), a Department of Homeland Security agency part of the former Immigration and Naturalization Service. As a DAO, Khalil’s responsibilities included personally administering two citizenship tests to applicants whose citizenship applications were randomly assigned to him. The first test was to determine applicants’ level of competency with the English language. The second test was to determine whether applicants had adequate knowledge of the United States Constitution. Applicants were required to pass both tests to be eligible for United States citizenship.
In pleading guilty, Khalil admitted that from mid-2003 through at least December 2008, he participated in a scheme to recruit applicants for United States citizenship and to take money from these applicants in exchange for assurances that they would pass their required citizenship tests. Khalil admitted that he used his position as a DAO to gain control over certain citizenship applicants’ files in order to carry out, and profit from his scheme.
Khalil pleaded guilty on February 5, 2013, to counts 1-9, 18, and 19 of the Superseding Indictment, which charged him with conspiracy to defraud the United States, in violation of 18 U.S.C. § 371 (Count 1), attempted unlawful procurement of citizenship, in violation of 18 U.S.C. § 1425(a) (Counts 2-9), false certification of citizenship applications, in violation of 18 U.S.C. § 1015(d) (Count 18), and attempted witness tampering, in violation of 18 U.S.C. § 1512(a) (Count 19).
The 38-month sentence was handed down by U.S. District Court Judge Richard Seeborg following Khalil’s guilty pleas. Judge Seeborg also sentenced the defendant to a three-year period of supervised release to follow his prison term. The defendant was ordered to begin serving his prison sentence on August 30, 2013.
Robin Harris is the Assistant U.S. Attorney who is prosecuting the case with the assistance of legal assistant Rawaty Yim. The prosecution is the result of a two-year investigation by the USCIS, an agency within the Department of Homeland Security.
Former Greeneville, Tennessee Pharmacist Sentenced to Serve 63 Months in PrisonRead the Press Release
GREENEVILLE, Tenn. – Robert David McNeese, 39, of Greeneville, Tenn., was sentenced on June 4, 2013, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 63 months in federal prison. McNeese was convicted for his participation in an oxycodone conspiracy in Greeneville, Tenn., which involved his illegal diversion of approximately 20,000 oxycodone pills.
McNeese, a former supervisory pharmacist and part owner of Corley’s Pharmacy in Greeneville, Tenn., illegally diverted these oxycodone pills from the pharmacy primarily to five other individuals: Chucky Joe Copas, 42, of Johnson City, Tenn., Jimmy Lee Hodges, 39, of Johnson City, Tenn., Terry Lee Scalf, 42, of Johnson City, Tenn., Scottie Wayne Leach, 39, of Watauga, Tenn., and George Eugene Copas, 42 of Johnson City, Tenn. These individuals were all indicted in federal court in the same case and obtained the pills from McNeese for their own consumption and for resale in the Eastern District of Tennessee. Each was previously sentenced by U.S. District Court Judge Greer to 92, 46, 156, 30 and 41 months in prison, respectively.
Law enforcement agencies participating in the investigation which led to the indictment and subsequent conviction of McNeese and his co-defendants include the Third Judicial District Drug Task Force, Federal Bureau of Investigation, Greeneville City Police Department and Drug Enforcement Administration Diversion, all of which both provided invaluable assistance during the course of the investigation. Assistant U.S. Attorney Wayne Taylor represented the United States.
United States Attorney William C. Killian stated, “We are pleased with the sentence in this case and believe it reflects the seriousness of the crimes committed.”
Former Engineer for Global Medical Technology Corporation Charged with Stealing Trade Secrets from New Jersey EmployerRead the Press Release
TNEWARK, N.J. – A former engineer for global medical technology company Becton, Dickinson and Company (BD) was arrested this morning by special agents of the FBI at a hotel in Ramsey, N.J., disrupting his alleged plan to relocate to India with trade secrets he stole from the Franklin Lakes, N.J.-based company, U.S. Attorney Paul J. Fishman announced.
Ketankumar Maniar, a/k/a “Ketan Maniar,” 36, an Indian national recently of Mahwah, N.J., is charged by complaint with theft of trade secrets for his own economic benefit. He is scheduled to appear this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court to face the charge.
According to the criminal complaint unsealed today:
Until his resignation from BD on May 24, 2013, Maniar was a staff engineer at BD’s Franklin Lakes headquarters, where he was a member of a group responsible for manufacturing prefillable syringes and pen injectors. In that capacity, Maniar had access to trade secret information related to BD products, including a self-administered disposable pen injector still under development by BD and not yet released for commercial sale.
While still employed by BD in May of 2013, Maniar downloaded approximately 8,000 files – containing, among other things, highly valuable BD trade secret information related to the pen in development – onto multiple computer storage devices, including external hard drives and thumb drives. Most of Maniar’s download activity occurred during the weeks leading up to his resignation.
Maniar also downloaded BD files from home after he had called in sick to work, and forwarded numerous files containing BD confidential information to one of his personal email accounts. The materials Maniar allegedly downloaded essentially comprise a tool kit for mass producing the pen injector.
On June 3, 2013, FBI agents executed court-issued search warrants of Maniar’s hotel room and seized computers and computer storage devices.
The maximum potential penalty for the theft of trade secrets charge is 10 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to the arrest. He also credited BD for its cooperation in the matter.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the U.S. Attorney’s Offices Economic Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
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Defense counsel: Ryan Blanch Esq., New York (for initial appearance)
Maniar, Ketankumar Complaint
Former Arkansas State Treasurer Martha Ann Shoffner Indicted on Federal Charges of Extortion and Receipt of BribesRead the Press Release
Little Rock - Christopher R. Thyer,United States Attorney for the Eastern District of Arkansas, and Randall C. Coleman, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation, announced today that a federal grand jury indicted former Arkansas State Treasurer Martha Ann Shoffner, age 68, of Newport, on six counts of extortion under color of official right, one count of attempted extortion under color of official right, and seven counts of receipt of a bribe by an agent of a state government receiving federal funds. A forfeiture allegation of $4,020 is also included in the indictment.
The statutory penalty for extortion and attempted extortion under color of official right, in violation of 18 U.S.C. § 1951(a), is not more than 20 years incarceration in the Bureau of Prisons with a possible find of up to $250,000, and not more than 3 years supervised release. The statutory penalty for receipt of a bribe by an agent of a state government receiving federal funds, in violation of 18 U.S.C. § 666(a)(1)(B), is not more than 10 years incarceration in the Bureau of Prisons with a possible find of up to $250,000, and not more than 3 years supervised release.
The investigation was conducted by the Federal Bureau of Investigation.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
(Superseding Indictment )
Florida Man Sentenced for Fraud SchemeRead the Press Release
BOSTON – A Florida man was sentenced today in connection with a scheme to defraud 200 people out of more than $700,000.
William Totaro, 61, of Pompano Beach, Fla., was sentenced by U.S. District Judge William G. Young to 42 months in prison, followed by three years of supervised release. Totaro was also ordered to pay $700,972 in restitution and to forfeit $462,750. In January 2013, Totaro pleaded guilty to conspiracy and mail fraud.At the plea hearing, Totaro admitted that between June 2010 and December 2010, he conspired with co-defendants Lawrence Amirto and Jamon Caswell to defraud victims in a business opportunity advance fee scheme involving an entity called Premier Service Group, Inc. (PSG). Totaro, Amirto and Caswell falsely claimed that PSG provided credit repair services to consumers. They also advertised in publications throughout the United States the sale of independent businesses whereby affiliates would purchase geographic territories and would receive leads from PSG for potential credit repair clients within those territories. The affiliates were to contact these leads, describe the services that PSG would provide, sign them up as clients of PSG, and earn commissions. PSG never provided any credit repair service. Instead, many of the newly-recruited affiliates were immediately given the opportunity to recruit additional affiliates. The new affiliates were thereby diverted from learning that there was no actual credit repair business, while soliciting still more affiliates. The funds collected from new affiliates were used for making payments to other affiliates, for expenses associated with the scheme, or for the personal expenses of Totaro, Amirto and Caswell. Totaro also admitted to operating similar advanced fee schemes between 2009 and 2011, using the names Snack America and Assisto Coffee.
United States Attorney Carmen M. Ortiz; Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service; and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Kristina E. Barclay of Ortiz’s Public Corruption and Special Prosecutions Unit.
Federal Jury Convicts Pensacola Man of Pseudoephedrine Chemical ConspiracyRead the Press Release
PENSACOLA, FLORIDA – A federal jury convicted Jared L. Hester, 29, late Tuesday on charges involving a conspiracy to possess and distribute pseudoephedrine, knowing it would be used to manufacture methamphetamine. The guilty verdict was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Hester was involved in the conspiracy to possess and distribute large amounts of pseudoephedrine in order to manufacture methamphetamine from January 1, 2011, until his arrest in April 2013. Pseudoephedrine is a listed chemical used to make methamphetamine in combination with other common household items such as fuel, ammonia, lithium, etc. The jury heard from other members of the conspiracy and was shown pharmacy records displaying dozens of pseudoephedrine purchases by Hester during the conspiracy. Many of these purchases overlapped with his codefendants’ purchases. In all, the conspirators purchased between 350 and 400 boxes of pseudoephedrine, so that it could be manufactured into methamphetamine. All of Hester’s seven codefendants pled guilty to the charges.
Sentencing for the defendant is set for August 14, 2013, at 10:30 a.m. Hester faces up to a maximum of twenty years imprisonment, three years of supervised release, and up to a $250,000 fine on the conspiracy charged in the indictment.
The indictment results from an investigation by agents of the U.S. Drug Enforcement Administration, the Florida Department of Law Enforcement, the Escambia County Sheriff’s Office, and the State Attorney’s Office. Assistant U.S. Attorney David L. Goldberg is prosecuting the case.
Fairmont Resident Indicted on Methamphetamine ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
WHEELING, WEST VIRGINIA —United States Attorney William J. Ihlenfeld, II, announced that:
TONISHA WOODS, age 34, of Fairmont, West Virginia, was named in a three-count Indictment charging her with the “Distribution of Morphine.” If convicted, WOODS faces up to 20 years imprisonment and a $1,000,000 fine on each count. This case will be prosecuted by Assistant United States Attorney Zelda E. Wesley and was investigated by the Three Rivers Task Force, consisting of officers from the Fairmont Police Department and the Fairmont State University Police Department.
All of the charges contained in the above-referenced indictments are merely accusations and not evidence of guilt, and each defendant is presumed innocent until and unless proven guilty.
Eugene Man Sentenced to 196 Months in Prison for Bank RobberyRead the Press Release
EUGENE, Ore. – Jeremie Wesley Skordahl, 33, of Eugene, Oregon, was sentenced today by Chief District Court Judge Ann Aiken to 196 months in prison for bank robbery. Upon his release from prison, Skordahl will be on supervised release for three years.
On November 12, 2012, Skordahl entered the Coburg Road branch of U.S. Bank in Eugene and handed the teller a note, which demanded money. He stated he was armed and would not hesitate shooting as many people as possible. Skordahl obtained $2,630 and fled the bank. Later the same day, Skordahl was located in a nearby residential area after a resident reported seeing Skordahl running through neighboring backyards. Skordahl was arrested and the money he stole was found on his person.
Skordahl's criminal history qualified him as a career offender under the Federal Sentencing Guidelines, resulting in an increased sentence. Additionally, as part of his plea agreement, Skordahl agreed to serve a longer federal sentence in order to receive a concurrent sentence in a Lane County Circuit Court assault case.
This case was investigated by the Federal Bureau of Investigation and the Eugene Police Department and was prosecuted by Assistant U.S. Attorney Jeffrey Sweet.
Essex County, N.J., Man Sentenced to Five Months in Prison for Transporting Explosive MaterialsRead the Press Release
TRENTON, N.J. – An Essex County, N.J., man was sentenced today to five months in prison for transporting explosive chemicals in a piece of polyvinyl chloride, or PVC, pipe to Pennsylvania without a federal license or permit, U. S. Attorney Paul J. Fishman announced.
Anthony Nicholas Gallo, 20, of North Caldwell, N.J., previously pleaded guilty before U.S. District Judge Anne E. Thompson to an Information charging him with transportation of explosive materials without a license or permit issued by the U.S. Attorney General. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
On Jan. 8, 2012, Gallo went to Pennsylvania and blew up potassium chlorate and magnesium in a PVC pipe, which provided a contained environment for the chemicals to produce a more powerful explosion. The potassium chlorate mixture is considered to be an explosive by the U. S. Bureau of Alcohol, Tobacco and Firearms.
In addition to the prison term, Judge Thompson sentenced Gallo to three years of supervised release.
U.S. Attorney Fishman credited special agents, detectives and investigators assigned to the FBI Joint Terrorism Task Force, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s sentence. The FBI Joint Terrorism Task Force comprises law enforcement officers from 30 federal, state and local agencies throughout New Jersey. He also thanked the North Caldwell Police Department and the Essex County Prosecutor's Office for their significant contributions to this investigation.The government is represented by Assistant U.S. Attorney Joyce M. Malliet of the U.S. Attorney’s Office National Security Unit in Newark.
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Defense counsel: Anthony Iacullo Esq., Nutley, N.J.Drug Trafficker Sentenced in Operation “No Quarter”Read the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today United States District Judge Terrence W. Boyle sentenced SHAWN CHRISTOPHER ELLIOTT, of Windsor, North Carolina to 70 months of imprisonment followed by 5 years of supervised release. Judge Boyle also sentenced ELLIOTT to 37 months of imprisonment concurrent to the 70 month sentence for violating terms of ELLIOTT’S supervised release related to his previous federal drug conviction. ELLIOTT pled guilty to conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine and a quantity of marijuana on August 20, 2012.
ELLIOTT was arrested in Greenville, North Carolina, on June 20, 2011, after being found in possession of $107,378 that ELLIOTT brought in order to purchase one kilogram of cocaine and one-hundred pounds of marijuana from an undercover officer. A search of ELLIOTT’S residence in Windsor, North Carolina, led to the seizure of 135 grams of cocaine, digital scales and a vacuum sealer.
The Organized Crime Drug Enforcement Task Force (OCDETF) Operation "No Quarter" was designed to attack the infrastructure of the Mexican Drug Trafficking Organizations (DTO), including those of the Los Zetas, La Familia, Gulf and Sinaloa drug cartels, operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico. These DTO's are responsible for the importation of large quantities of cocaine, marijuana, heroin, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico.
The investigation spanned ten years and five North Carolina counties. As part of the investigation, over 100 individuals have been charged by indictment or criminal information in the Eastern District of North Carolina and state courts. In addition, $2.2 million in U.S. Currency, 127 kilograms of cocaine with a street value of $3.8 million dollars, 41 pounds of crystal methamphetamine with a street value of $650,000, 160 pounds of marijuana with a street value of $170,000, 32 grams of heroin, 35 firearms and 35 real properties valued at $1.5 million were seized by law enforcement authorities.
Investigation of this case was conducted by the Drug Enforcement Administration (DEA) - Raleigh and Greensboro Resident Offices, the New York Field Division and numerous other DEA offices in the United States and Mexico; the Internal Revenue Service - Criminal Investigation Division; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Raleigh and Wilmington offices; the United States Marshals Service; the United States Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) - Raleigh and Tampa, Florida offices; the North Carolina State Bureau of Investigation; the North Carolina National Guard; the North Carolina State Highway Patrol; the Greenville Police Department; the Pitt County Sheriff's Office; the Pamlico County Sheriff's Office; the Lenoir County Sheriff's Office; the Craven County Sheriff's Office; the Carteret County Sheriff's Office; the Beaufort County Sheriff's Office; the New Bern Police Department, the Wayne County Sheriff's Office; the Person County Sheriff's Office; the Farmville Police Department; the Goldsboro Police Department; the Rocky Mount Police Department; the Burlington Police Department, the Alamance County Sheriff's Office, and the Wilson Police Department.
The federal prosecutions were handled by Special Assistant United States Attorneys Glenn Perry and Augustus Willis, IV. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Mr. Willis is a prosecutor with the Craven, Carteret and Pamlico Counties District Attorney’s Office. District Attorneys Kimberly Robb and Scott Thomas have assigned Mr. Perry and Mr. Willis to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Their assignments to the United States Attorney’s Office have been made possible by grants funded by the Governor’s Crime Commission.
Denver Man Charged with Receipt of Child Pornography for Ordering Illegal Images Sent via United States MailRead the Press Release
DENVER – Clifford Eric Perian, age 53, of Denver, Colorado, was arrested last week based on a Criminal Complaint charging one count of receipt of child pornography, the United States Attorney’s Office and the U.S. Postal Inspection Service announced. Late last week U.S. Magistrate Judge Boyd N. Boland determined Perian was a danger to the community, and therefore ordered him held without bond pending a resolution of his criminal case. The following facts are alleged in an affidavit filed in support of a Criminal Complaint – the facts of which will have to be proven beyond a reasonable doubt by the government. Further, the facts contained in the Complaint are allegations, and the defendant is presumed innocent until proven guilty. Anyone charged with a felony by Criminal Complaint has a Constitutional right to be indicted by a federal grand jury.
Based on a law enforcement tip, the United States Postal Inspection Service (USPIS) began an investigation into Clifford Eric Perian, and determined that he had on multiple occasions purchased several child pornography films.
With the help of the National Center for Missing and Exploited Children, the United States Postal Inspection Service investigated numerous CyberTipLine reports relating to emails and online postings by an individual using three different email addresses going back as far as November 11, 2007. The NCMEC and the USPIS were able to establish that evidence existed indicating that all three accounts were used by Clifford Perian. In the postings, Perian was soliciting parents of minor boys or looking for minor volunteers to be subjected to various acts of sexual torture and/or abuse.
On May 23, 2013, Postal Inspectors executed a search warrant at the residence of Perian in Denver. Inspectors found the bondage and sexual paraphernalia Perian boasted about online. They also found DVD’s containing child pornography or child erotica. Computers were also seized. Following the execution of the search warrant, Postal Inspectors contacted Perian. Investigators then determined that Perian ordered videos online, and then received them in the U.S. Mail. It was also determined that Perian received images of young males under the age of 18 engaged in sexual activity with male adults through internet chat rooms and via email. There were also allegations that Perian sexually touched and was sexually touched by at least three boys ages 16 to 17 in approximately 2004 through 2006. Law enforcement also determined that Perian had been to local water parks taking non-explicit pictures of young boys he did not know under the age of 18.
“While most child pornography is now distributed and received via the internet, there are still companies that mail these horrible images exploiting children through the U.S. Mail,” said U.S. Attorney John Walsh.
“The arrest of this defendant is critical because Postal Inspectors and Assistant U.S. Attorneys were able to identify someone who was using the U.S. Mail to sexually exploit children. The defendant in this case received the images in the mail, which is a crime.”
“Protecting children from these egregious crimes is a top priority for the U.S. Postal Inspection Service,” said Craig Goldberg, Acting Inspector in Charge of the U.S. Postal Inspection Service in Denver. “We continue to aggressively investigate, apprehend and assist in the prosecution of individuals who seek to exploit children via the U.S. Mail.”
Perian faces not less than 5 years and up to 20 years in federal prison for receipt of child pornography. He also faces up to a $250,000 fine, as well as possible restitution and forfeiture.
This case is being investigated by the U.S. Postal Inspection Service.
Perian is being prosecuted by Assistant U.S. Attorney Valeria Spencer.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit http://www.justice.gov/psc/ For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
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Defendant Sentenced for Running A Work-From-Home ScamRead the Press Release
ATLANTA - Detrick Mattox, who operated numerous fraudulent work-from-home businesses has been sentenced to over two years in prison for conspiring to commit mail fraud.
“This scheme was designed for one simple purpose - to swindle people out of their hard-earned money through lies and deceit,” said United States Attorney Sally Quillian Yates. “Mattox preyed on folks just trying to earn a living. Now he’s going to prison.”
The U.S. Postal Inspection Service has no shortage of work-at-home schemes to investigate. This is just another example of the defendant’s greed preying on the public’s need to earn an honest living. Consumers should be suspicious of any offer that does not pay a regular salary because if it sounds too good to be true, it probably is,” said Keith Morris, Postal Inspector in Charge for the Atlanta Division.
According to United States Attorney Yates, the charges and other information presented in court: Mattox ran numerous businesses that purported to offer its members work-from-home opportunities, including: Atlanta’s Mailing Company; Atlantis Mailing Company; Brown Staffing Services; Central Mailing Company; Detrick Mattox Enterprises; Georgia Assembly Company; Global Assembly Company; Global Mailing Enterprises; Jobs R US; National Assembly Company; Nationwide Express Mailing; Pacific Mailing Company; Premiere Mailing Company, and Regional Assembly Company.
Mattox promoted his work-from-home businesses by claiming that members who applied for the program and then paid an initiation fee would be able to work from their homes and earn up to $5,000 per week. The members were supposed to assemble materials into booklets and mail the booklets to the addresses provided by Mattox. He also claimed that members could earn up to $20 for each booklet that they assembled and mailed. To join the program, prospective members had to pay Mattox an up-front initiation fee of approximately $50 to $500. He typically instructed prospective members to pay the initiation fee by mailing a money order to one of the named businesses.
Once the initiation fee was paid, the majority of the members never received any materials to assemble for their work-from-home businesses. The few members who did receive materials from Mattox, and assembled and then mailed those materials, were never paid for their services. After Mattox received a member’s initiation fee, virtually all attempts by the member to contact the work-from-home businesses were ignored. Finally, to avoid consumer complaints and negative public information, Mattox frequently changed the names, websites, and contact information of the work-from-home businesses.
According to an affidavit submitted in support of a search warrant obtained in the case, more than 200 people responded to advertisements by Mattox and became members. Thereafter, a Postal Inspector conducted an undercover investigation, responding to Internet advertisements posted by Mattox, but never received the promised materials after sending payment.
Mattox, 33, of Ellenwood, Ga., was sentenced to 2 years 9 months of in prison to be followed by 3 years of supervised release. He was convicted of the charges on March 18, 2013, upon his plea of guilty.
This case was investigated by Inspectors of the United States Postal Inspection Service.
Assistant United States Attorney Jeffrey W. Davis prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Defendant Pleads Guilty to Smuggling and Transporting Illegal Aliens, and Failure to Appear in Federal CourtRead the Press Release
[Plattsburgh, New York]—United States Attorney Richard S. Hartunian and Homeland Security Investigations Special Agent in Charge James Spero announce that NATHAN SAMSON MARTIN, age 31, Akwesasne, New York, pled guilty on June 4, 2013 to conspiring to bring and bringing illegal aliens into the United States and transporting them within the United States, and failure to appear at federal court proceedings after his pretrial release. United States District Court Judge Glenn T. Suddaby, Syracuse, New York, accepted his guilty pleas.
MARTIN was one of three people indicted in April 2010 for conspiring to smuggle aliens from Canada into the United States for commercial gain in 2009 and 2010. He is the second defendant of the three defendants charged to plead guilty to his role in the conspiracy. Another defendant, Carl THOMPSON, previously pled guilty and was sentenced to three years of imprisonment. A third defendant, Dennis JOCKO of Cornwall Island, Ontario, remains a fugitive after absconding from pre-trial supervision upon release by United States Magistrate Judge Kudrle.
Public court documents show that on February 8, 2010, Akwesasne Mohawk Police Service officers in Canada alerted Saint Regis Mohawk Tribal Police Department officers and U.S. Border Patrol agents to a vehicle that crossed the “ice bridge” from Cornwall Island, Ontario, to St. Regis Village, Quebec, and proceeded into Franklin County, New York. After law enforcement officers in New York observed the vehicle drop off a person in Hogansburg, they attempted to stop the vehicle for an immigration inspection. The driver, later identified as MARTIN, attempted to flee but was apprehended. The person that MARTIN dropped off was an illegal alien who had just been commercially smuggled into the United States from Canada through the Saint Regis Mohawk Reservation. MARTIN received part of the smuggling fee, according to the smuggled alien. A U.S. Magistrate Judge released MARTIN on February 9, 2010, subject to supervision by the U.S. Probation Office. However, MARTIN failed to appear for a hearing as ordered by U.S. District Judge Suddaby on January 4, 2011, and an arrest warrant was issued. On January 7, 2013, the defendant was found and arrested in the United States on the federal warrant by the Saint Regis Mohawk Tribal Police.
MARTIN pled guilty to all charges without a plea agreement. He faces a statutory maximum of ten years and a minimum of three years of imprisonment on the charge of bringing, or aiding and abetting the bringing, of illegal aliens to the United States. The charge of failure to appear has a statutory maximum of five years of imprisonment, as do the other two counts of conspiracy and transporting aliens, but federal law requires that the court run any sentence for failure to appear consecutive to any other sentence. The Court set the case for sentencing on October 10, 2013 and ordered MARTIN to remain in jail pending sentencing.
The case was investigated by Homeland Security Investigations (HSI), Massena, New York, with assistance from the United States Border Patrol, Saint Lawrence County Sheriff’s Department, Saint Regis Mohawk Tribal Police Department, Akwesasne Mohawk Police Service, Royal Canadian Mounted Police, Ontario Provincial Police, Canadian Border Services Agency, and Surete Du Quebec. The case is being prosecuted by the United States Attorney’s Office for the Northern District of New York.
Any questions may be directed to Executive Assistant U.S. Attorney John G. Duncan in Syracuse, New York at (315) 448-0672 or Assistant U.S. Attorney Elizabeth Horsman in Plattsburgh, New York at 518-314-7800.
Cutler Bay Man Sentenced in $12 Million Identity Theft Tax Refund Fraud Scheme Involving the Cashing of Thousands of Fraudulently Obtained U.S. Treasury ChecksRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula A. Reid, Special Agent in Charge, United States Secret Service (USSS), Ronald Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Field Office, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced the sentencing of defendant Jesus Calvo, 30 of Cutler Bay, for his role in an identity theft tax refund fraud scheme, to 58 months in prison, to be followed by 3 years of supervised release. U.S. District Judge Jose Martinez also ordered the defendant to pay $9.2 million in restitution to the Internal Revenue Service.
According to the factual proffer, the defendant operated a check cashing store called J&S Taxes in Perrine, Florida. Beginning in or around February 2012, and continuing through in or around June 2012, the defendant cashed thousands of fraudulently obtained United States Department of Treasury income tax refund checks (totaling approximately $12MM) that were brought by co-conspirators. The defendant knew that the checks had been obtained by fraud and without authorization of the true taxpayer.
According to the factual proffer, the defendant received more than the standard fee for cashing the checks because the tax-refund checks had been obtained by fraud. The standard fee for cashing these checks would have been from two to five percent. However, the defendant took much more than that fee and used this money for his own personal expenditures – he purchased two houses, he funded his retirement account, he invested in a “start-up company,” he purchased an investment property, and he purchased cars and other items.
According to the plea agreement and statements made in court, the defendant agreed to forfeit two houses, five cars, three bank accounts, high-end watches, jewelry and cash. These assets had an estimated value of approximately $2 million.
Mr. Ferrer thanked IRS-CI, USSS, USPIS, and FBI for their work on this case. The case is being prosecuted by Assistant U.S. Attorneys Michael N. Berger, Evelyn Sheehan and Elijah Levitt.
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.
Convicted Felon Pleads Guilty to Unlawfully Possessing Three FirearmsRead the Press Release
POCATELLO – Bruce Leighton Diehl, 43, of Idaho Falls, Idaho, pleaded guilty yesterday in United States District Court in Pocatello to unlawful possession of firearms, U.S. Attorney Wendy J. Olson announced.
According to court records, Idaho State probation officers visited Diehl at his residence in Idaho Falls on April 4, 2012, after Diehl failed to attend court-ordered treatment. Diehl was on probation after being convicted in 2011 in Clark County, Idaho, of felony eluding a police officer and felony malicious injury to property. While clearing the residence of other individuals and weapons, the probation officers located a rifle, a 12 gauge shotgun, a pistol, and several rounds of ammunition. Diehl told police that the firearms had been in the garage with his other belongings when he got out of prison, that a friend had moved his belongings from the garage into the house for him, and that he had forgotten that the guns were in the property from the garage.
In addition to the 2011 felony eluding and malicious injury to property convictions, Diehl was also convicted in 1998 of possession of a controlled substance in Bonneville County, Idaho. As a result of these convictions, Diehl is prohibited from possessing firearms.
The charge is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years supervised release.
Sentencing is set for September 3, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Pocatello.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives with the assistance of the Idaho Department of Corrections, Bureau of Probation and Parole.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Contractor Pleads Guilty to Fraud, Filing False Tax ReturnsRead the Press Release
PITTSBURGH, Pa. - A construction company executive pleaded guilty in federal court to an Information charging him with mail fraud and filing false tax returns, United States Attorney David J. Hickton announced today.
Robert E. Crawford, 54, of Pittsburgh, Pa., pleaded guilty to two counts before United States District Judge David S. Cercone.
The Information filed by the United States Attorney alleged that Crawford was the President and Chief Executive Officer of R.E. Crawford Construction, Inc., located in Springdale, Pa. The information also alleged that R.E. Crawford Construction, Inc. entered into two contracts with Simon Property Group, Inc., one in or around September of 2006 for the construction and redevelopment work on the Northgate Mall in Seattle, Washington, and one in or around November of 2007 for the construction and redevelopment work on the Laguna Hills Mall in Laguna Hills, California. According to the Information, Crawford fraudulently overstated the costs incurred on these contracts, causing Simon Property Group to over-pay Crawford's company for the work done on both of those projects. In addition, the Information states that Crawford paid approximately $766,000 to a vice president employed by Simon Property Group, who in turn used his authority and influence at Simon Property Group to select Crawford's company to be the general contractor for those jobs.
Crawford also pled guilty to charges of assisting in the preparation of false tax returns, and with filing false tax returns for the years 2006, 2007 and 2008.
Judge Cercone scheduled sentencing for Dec. 13, 2013, at 10 a.m. The law provides for a total sentence of 23 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Shaun E. Sweeney is prosecuting this case on behalf of the government.
The Internal Revenue Service and the United States Postal Inspection Service conducted the investigation that led to the prosecution of Crawford.
Colorado Springs Felon Sentenced for Possession of DynamiteRead the Press Release
DENVER – Arthur Ray Hickman, age 45, of Colorado Springs, Colorado, was sentenced last week by U.S. District Court Judge William J. Martinez to serve 24 months in prison for being a felon in possession of explosives, United States Attorney John Walsh, and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Andrew Traver announced. After serving his sentence, Judge Martinez ordered Hickman to spend 3 years on supervised release. Hickman, who appeared at the hearing in custody, was remanded.
Hickman was indicted by a federal grand jury in Denver on July 11, 2012. He pled guilty to on February 11, 2013. He was sentenced on May 29, 2013.
According to court records, including the stipulated facts contained in the plea agreement, on February 17, 2012, an officer with the Colorado Springs Police Department (CSPD) responded to money advancing business on North Academy Blvd., in Colorado Springs, Colorado, to investigate a fraud allegation. The officer interviewed a vault teller at the business, who reported the a person, who turned out to be Hickman, had tried to cash what she believed to be a fraudulent check.
Colorado Springs police officers conducted an investigation into the fraud allegation, with Hickman as a suspect. A CSPD detective took over the investigation since he was familiar with Hickman and his activities, mostly focused on identity theft and forgeries. The detective noted that Hickman was previously identified as possibly conducting illegal activity involving the use of computers for producing fake identifications. He was also suspected of stealing a machine that makes ID cards from a Denver Department of Motor Vehicle office, a micro SD card containing templates for all 50 states’ drivers licenses, and a VIN plate maker.
On April 12, 2012, officers executed a search warrant at Hickman’s home. During the subsequent search, detectives found in Hickman’s bedroom a box containing three sticks of dynamite. Hickman, a prior felon, knowingly illegally possessed the dynamite. Hickman had done research to determine how safe it was to store dynamite in his bedroom. The dynamite that Hickman possessed is an explosive under federal law.
Prior to Hickman’s possession of the dynamite he had been convicted of: receiving/known stolen property (San Diego County, CA); felon/addict/possess firearm (Minnehaha County, SD); possession of controlled substance (El Paso County, CO); forgery-government issued document (El Paso County, CO); ID theft-possess with intent to use, conspiracy (El Paso County, CO); ID theft-possess with intent to use (El Paso County, CO).
“Thanks to the outstanding work of the Colorado Springs Police Department and the ATF, an individual who was a felon in possession of dynamite and involved in identity theft has been sent to prison for his crimes,” said U.S. Attorney John Walsh.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Colorado Springs Police Department.
Hickman was prosecuted by Assistant U.S. Attorney Jeremy Sibert.
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Cleveland Trio Charged for Armed RobberyRead the Press Release
Three people from Cleveland were named in a seven-count indictment for their roles in an armed robbery, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Eric Gooch, age 22, Larnell A. Tripp, Jr., age 24, and Ashley N. White, were charged conspiracy to commit interference with commerce by robbery and possession of a firearm during a crime of violence. Gooch was also charged with two separate counts of armed bank robbery and possessing a firearm during the bank robberies.
Specifically, the indictment alleges that from December 2012 to January 21, 2013, Eric Gooch, Larnell Tripp, Jr., and Ashley White conspired to rob Roses Discount Store in Cleveland, Ohio. The indictment further alleges that on January 21, 2013, they entered and robbed the Roses Discount Store, and during the robbery, a firearm was brandished. The indictment further alleges that on February 22, 2013, Eric Gooch robbed the PNC Bank located at 16614 Harvard Avenue, Cleveland, Ohio, and on March 13, 2013 Gooch robbed the PNC Bank located at 2771 South Moreland Boulevard, Cleveland, Ohio. The indictment further alleges that a firearm was brandished during each bank robbery.
The indictment resulted from an investigation conducted by the City of Cleveland, Division of Police, and the Federal Bureau of Investigation.
The case is being prosecuted by Assistant United States Attorneys Michelle M. Baeppler and M. Kendra Klump.
If convicted, each defendant’s sentence will be determined by the court after review of factors unique to each case, including the defendants’ prior criminal records, if any, the defendants’ roles in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
Civilian Indicted for Sexual Assault at NAS PensacolaRead the Press Release
PENSACOLA, FLORIDA – Edwin C. Mitchell, 49, of Ellenwood, Georgia, appeared in federal court today on charges of aggravated sexual abuse, sexual abuse, and abusive sexual conduct, according to Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The three-count indictment charges Mitchell with causing the victim to engage in sexual acts and sexual conduct by using force, by placing her in fear, and by doing so against her will on or about December 15, 2012. If convicted of the aggravated sexual abuse charge, Mitchell faces a possible maximum term of life imprisonment. Mitchell is scheduled for trial on July 8, 2013, before Chief U.S. District Court Judge M. Casey Rodgers.
The charges result from an investigation by the Naval Criminal Investigative Service. The case is being prosecuted by Assistant U.S. Attorneys Alicia Kim and Randy Hensel.
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 at trial in a court of law.
Chicago Man Sentenced to 78 Months in Prison for Running Investment Fraud SchemeRead the Press Release
SAN FRANCISCO - Michael Steven Banuelos (aka Ferrari Mike, aka Mike Banuelos) was sentenced yesterday to 6 ½ years in federal prison for running a three-year investment fraud scheme through which he fraudulently obtained approximately $2.6 million, announced United States Attorney Haag.
As part of his fraudulent scheme, Banuelos falsely claimed to be a successful promoter in the music industry with ties to various well-known recording stars. In furtherance of his fraud, Banuelos lied to the business manager of a musical group, claiming that he, Banuelos, had arranged a concert tour during which the aforementioned musical group would be the opening act for one of the well-known stars with whom he had ties. Banuelos also lied to this business manager and other investors, claiming that he had negotiated a multimillion contract with a major recording label for the rights to the music group. Banuelos also used false statements and phony documents to lure in additional investors in this purported music deal and non-existent deals regarding other musical artists. Several of the investors in these purported deals lived in the Bay Area.
Of the approximately $2.6 million dollars he obtained through this scheme, Banuelos spent the overwhelming majority of it on personal expenses. Those expenses included payments to one of his ex-wives, scores of thousands of dollars on car payments, and thousands of dollars paid for a country club membership and dues.
As his music deal scam was coming to a close, Banuelos defrauded additional individuals out of another $200,000. Banuelos falsely claimed to these victims that he was a successful money manager whom one client had entrusted with $45 million for investment. Banuelos provided false documentation of these claims, too, resulting in the victims providing more money to Banuelos in the mistaken belief it would be invested on their behalf.
Banuelos, 42, was indicted by a federal grand jury on July 12, 2012. He was charged with twelve counts of wire fraud, in violation of Title 18, United States Code, Section 1343, and one count of money laundering, in violation of Title 18, United States Code, Section 1957. He was arrested on July 26, 2012, in Chicago, where he had lived for the preceding few months. Prior to moving to Chicago, he had lived in and around Atlanta, Georgia. He has remained in federal custody since his arrest.
On February 26, 2013, Banuelos pleaded guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343.
Doug Sprague is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rayneisha Booth. The prosecution is the result of a one-year investigation by the Federal Bureau of Investigation.
Charlotte Man Sentenced to 15 Years in Prison for Firearms OffenseRead the Press Release
CHARLOTTE, N.C. – A Charlotte man has been sentenced to 15 years in prison for a firearms related offense announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. On Monday, June 3, 2013, Chief U.S. District Judge Frank D. Whitney sentenced Harvey Lee Mungro, Jr., 46, of Charlotte to serve 180 months in prison, followed by two years of supervised release. Mungro’s Mungro’s at least three prior felony convictions prohibit him from carrying a weapon and he was therefore sentenced by the Court as an armed career criminal.
U.S. Attorney Tompkins is joined in making today’s announcement by Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Rodney D. Monroe of the Charlotte Mecklenburg Police Department (CMPD).
In November 2011, a criminal bill of indictment charged Mungro with one count of possession of a firearm by a convicted felon. According to filed court documents and statements made in court, on August 9, 2011 Mungro possessed a Hi-Point, 9mm semiautomatic pistol and 18 rounds of ammunition in the car he was driving. Court records indicate that law enforcement officers recovered the firearm and ammunition when they conducted a traffic stop of Mungro’s vehicle. Mungro pleaded guilty to the charge in August 2012.
In announcing the sentence, Judge Whitney noted that it was the defendant’s criminal history that resulted in the elevated sentence and observed that the sentence would have a general deterrent effect.
Mungro has been in custody since August 2011. He will be transferred to the custody of the Federal Bureau of Prisons upon the designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the ATF and CMPD. The case was prosecuted by Assistant United States Attorney Robert J. Gleason of the U.S. Attorney’s Office in Charlotte.
Charleston Man Charged with Traveling to Have Sex with Minor FemaleRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
Defendant alleged to have taken victim to hotel in Wetzel County
WHEELING, WV – A West Virginia man has been indicted by a federal grand jury for allegedly traveling across state lines to have sex with a minor whom he had met on the Internet, according to United States Attorney William J. Ihlenfeld, II.
MARK LORING DAWSON, age 51, of Charleston, West Virginia, is charged with driving to Sardis, Ohio and picking up a minor female, and then transporting her to a hotel in New Martinsville, West Virginia, and engaging in sexual activity with her on two separate occasions. These acts are alleged to have occurred between May of 2012 and April of 2013.
DAWSON faces two counts of “Transportation with Intent to Engage in Criminal Sexual Activity” and two counts of “Traveling in Interstate Commerce with the Intent to Engage in Illicit Sexual Conduct.” If convicted, DAWSON faces up to life in prison on the transportation counts and up to thirty years in prison on the traveling counts. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the criminal history, if any, of the defendant.
DAWSON, who is being held at the South Central Regional Jail, will appear in federal court today for an initial appearance.
The case will be prosecuted by U.S. Attorney Ihlenfeld and is being investigated by the Federal
Bureau of Investigation and the New Martinsville Police Department.DAWSON is presumed innocent until and unless proven guilty.
California Man Sentenced for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a Livermore, California man charged with Failure to Pay Legal Child Support was sentenced on May 31, 2013 by U.S. Magistrate Court Judge John E. Simko.
David V. Jackson, age 53, was sentenced to 2 years of probation, a $10.00 special assessment to the Federal Crime Victims Fund, and child support restitution in the amount of $29,817.18.
Jackson was indicted by a federal grand jury on August 14, 2012 for failing to pay over $29,706.00 in past due child support. He was ordered by the Second Judicial Circuit Court to pay $200.00 per month for his minor child, commencing July 1, 1997. At the time of indictment, he had not made a child support payment since May of 2010, and the total arrearage amount was $29,706.18. Jackson pled guilty to the charge on May 31, 2013.
This case was investigated the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Thomas J. Wright prosecuted the case.
Bay Mills Man Sentenced for Assault on A Federal OfficerRead the Press Release
MARQUETTE, MICHIGAN – Lorne Anthony Lyons, 51, of Brimley, Michigan and a member of the Bay Mills Indian Community, was sentenced to 14 months in federal prison for assault upon a federal officer, U.S. Attorney Patrick A. Miles, Jr. announced today. In addition to the prison term, U.S. District Judge R. Allan Edgar ordered Lyons to serve two years of supervised release following his release from prison and to pay a $100 special assessment.
On December 4, 2012, after a two-day jury trial, Lyons was convicted of assault upon a federal officer with a dangerous weapon. The charge arose from an incident on May 7, 2012, during which Lyons sent text messages to his estranged wife claiming he had committed a suicidal act. Bay Mills Tribal Police responded to an emergency call, and with the assistance of U.S. Border Protection agents, searched Lyons’ residence trying to locate him. Lyons, who was hiding in a closet, refused to come out when asked by the officers, and instead produced a short sword, thrusting it at the Tribal Police officer, waving it around, and throwing it at the officer after he was shot with a taser.
The Bay Mills Indian Community Tribal Police, U.S. Border Patrol and the FBI investigated the case. Assistant U.S. Attorney Paul D. Lochner prosecuted the case..
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Bank Employee Pleads Guilty in Large Tax Refund SchemeRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Graciela Serra, 36, of Rochester, N.Y., pleaded guilty before U.S. District Court Judge David G. Larimer to conspiracy to commit tax fraud in connection with a large nationwide tax refund scheme. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that from January 29, 2011 to October 31, 2011, Serra was involved in a scheme to obtain income tax refunds by the filing of fraudulent federal income tax returns with the Internal Revenue Service. Specifically, stolen identities were utilized to file the fraudulent federal income tax returns, and the wages and related tax withholdings reported on the federal income tax returns were fabricated in order to obtain the refunds. Most of the returns were filed in the names and social security numbers of individuals residing in Puerto Rico without their knowledge. The refund checks issued as a result of the fraudulent returns were sent to various addresses in Rochester and other locations in the country.
Serra, while a teller at the Woodforest Bank on Hudson Avenue in Rochester, used her position at the bank to cash several of the fraudulent tax refund checks for other participants in the scheme who brought the fraudulent checks to her at the bank. The defendant cashed the checks knowing they were in the names of individuals other than the individuals who brought the checks to the bank. The defendant was paid a fee for cashing the checks.
“Using one’s position of trust to facilitate a crime is something our office takes very seriously,” said U.S. Attorney Hochul. “In this case, the defendant abused her position as a bank teller to cash fraudulent checks issued by the Internal Revenue Service. Such fraud against the Government in reality impacts all Americans.”
The plea is the culmination of a joint investigation on the part of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel and the Internal Revenue Service, under the direction of Toni M. Weirauch, Special Agent in Charge.
Sentencing is scheduled for September 20, 2013 before Judge Larimer.Armed Career Criminal Sentenced to 15 Years in Prison for Federal Fireams ViolationsRead the Press Release
CHARLOTTE, N.C. – A Charlotte man was sentenced in federal court on Monday, June 3, 2013, for being a felon in possession of a firearm, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
Derek Lorenzo Covington, 47, of Marshville, N.C. was sentenced by Chief U.S. District Judge Frank D. Whitney to 180 months in prison, followed by two years of supervised release. In June 2012, Covington pleaded guilty to being a felon in possession of a firearm in violation of federal gun laws. Covington’s prior felony convictions prohibit him from carrying a weapon. Because Covington has three or more prior felony convictions, he qualifies as an “armed career criminal.”
U.S. Attorney Tompkins is joined in making today’s announcement by Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, Chief Rodney D. Monroe of the Charlotte Mecklenburg Police Department (CMPD) and Sheriff James E. Clemmons, Jr. of the Richmond County Sheriff’s Office.
According to the criminal indictment and statements made in court, on May 3, 2011, Covington went into a pawnshop in Charlotte and pawned a Springfield 20 gauge shot gun. Law enforcement officers obtained video footage from the pawn shop that showed Covington pawning the shotgun. Law enforcement also recovered a pawn slip for the shotgun with Covington’s name and signature. At the time of the offense, Covington was a convicted felon and was prohibited from possessing a firearm. Court records indicate that law enforcement later determined the shotgun was a stolen firearm.
Covington has been in federal custody since December 2011. He will be transferred to the custody of the Federal Bureau of Prisons upon the designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by ATF, CMPD and the Richmond County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Robert J. Gleason of the U.S. Attorney’s Office in Charlotte.
Arlen "benny" Cenac Jr. Pleads Guilty to Making False Statements to the Federal Election CommissionRead the Press Release
The president of a Louisiana towing company pleaded guilty today to using his personal and business accounts to fund campaign contribution checks in the names of others in support of two candidates for the U.S. Senate, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Dana Boente announced.
ARLEN “BENNY” CENAC JR., 57, a resident of Houma, La., and the president and owner of Cenac Towing, pleaded guilty today to making false statements to the Federal Elections Commission (FEC). He faces a maximum penalty of five years in prison when he is sentenced on Sept. 5, 2013, before U.S. District Judge Carl Barbier.
“Today’s plea marks the second campaign finance conviction in a week and is one of many such cases brought throughout the nation,” said Acting Assistant Attorney General Raman. “Mr. CENAC’s crime undermined the cornerstones of campaign finance laws, and his conviction demonstrates our resolve to hold accountable anyone who corrupts our electoral process.”
“Mr. CENAC, in an effort to increase his political contributions, structured his financial transactions and created false documents,” said U.S. Attorney Boente. “This prosecution should serve as a warning to people who attempt to hide their identity and make contributions in excess of legal limits.”
According to the plea documents, CENAC obtained cashier’s checks using his personal and corporate funds in names of individuals other than himself, including people he knew professionally, personally, or through family relations. CENAC neither sought nor obtained the permission of the individuals he listed as remitters on the cashier’s checks. He then submitted the checks as campaign contributions to the campaigns of two U.S. Senate candidates, causing the campaigns to submit materially false information regarding the source and the amount of the contributions to the FEC.
The case was investigated by the FBI’s New Orleans Division. Trial Attorney Tracee Plowell of the Public Integrity Section and Assistant U.S. Attorney Daniel Friel of the Eastern District of Louisiana are prosecuting the case on behalf of the United States.
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Area Man Pleads Guilty to Federal Bank Robbery ChargesRead the Press Release
St. Louis, MO - Keith Lamar Dunlap pled guilty to the January 18, 2013 robbery of the Commerce Bank in Webster Groves.
KEITH LAMAR DUNLAP, Trenton, IL, pled guilty to one felony count of bank robbery before United States District Judge Catherine D. Perry, Tuesday afternoon, June 4th. Sentencing has been set for August 27, 2013.
Dunlap now faces a maximum penalty up to 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 Webster Groves Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney’s Office.Albuquerque Man Charged with Assaulting a Federal OfficerRead the Press Release
ALBUQUERQUE – James Ronquillo, 19, of Albuquerque, N.M., made his initial appearance in federal court this morning on a criminal complaint charging him with assault on a federal officer. Ronquillo remains in custody pending a detention hearing, which has yet to be scheduled.
Ronquillo was arrested yesterday afternoon in southwest Albuquerque by the FBI following a undercover drug transaction during which Ronquillo allegedly delivered 207 grams of suspected crack cocaine to an undercover officer in exchange for $7000.
According to the criminal complaint, FBI agents and task force officers conducted surveillance of Ronquillo after the transaction and observed him get into a vehicle and drive down the street. Thereafter, an agent and officer continued surveillance of Ronquillo until they observed Ronquillo driving in the direction of their vehicle. As Ronquillo drove toward them, the agent, who was wearing a bullet-proof vest with law enforcement markings and the word “Police” across the chest, got out of the front passenger seat of the vehicle while the task force officer remained in the driver’s seat. Both the agent and officer observed that Ronquillo allegedly was driving towards them at a high rate of speed and continuing to accelerate. Based on his belief that Ronquillo posed a serious threat of injury or death to the officer and to him, the agent fired his service weapon at Ronquillo immediately before Ronquillo’s vehicle collided with the unmarked vehicle in which the task force officer was seated.
Ronquillo faces a maximum sentence of 20 years in prison if convicted of the charge in the criminal complaint. Allegations in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque Division of the FBI and Albuquerque Police Department officers assigned to the FBI’s Safe Streets Task Force. Assistant U.S. Attorney Samuel A. Hurtado is prosecuting the case.
Albany Woman Arrested on Charges She Called in Bomb Threats to SchoolsRead the Press Release
EUGENE, Ore. – Today FBI Agents arrested Jenelle Pinkston, age 45, for allegedly calling in bomb threats to Albany, Oregon, elementary schools in April and May of this year. Pinkston faces one count of threatened use of a destructive device. If convicted, she faces a maximum penalty of 10 years in prison and a $250,000 fine. Pinkston made her initial appearance before Magistrate Judge Thomas M. Coffin on Wednesday, and he ordered Pinkston held pending further court proceedings.
According to the criminal complaint, investigators allege that Pinkston made one call on April 16, 2013, to Waverly Elementary School, threatening that a bomb would explode in 10 minutes. The complaint further alleges that Pinkston made two calls on May 23, 2013: another call to Waverly Elementary School and one to Periwinkle Elementary School. In all cases, administrators evacuated the schools, but no devices were ever found. Albany Police Department and Albany Fire Department responded to all incidents and expended significant resources in determining that the schools were safe for the students to return. Albany Police Department initially determined the phone that was used in the threats, traced that phone’s ownership and use, and arrested Pinkston on local charges of coercion, disorderly conduct, and tampering with evidence.
Assistant United States Attorney William Fitzgerald is the federal prosecutor overseeing this case.
A criminal complaint is only an accusation of a crime, and all defendants should be presumed innocent until proven guilty.
4 June 2013
William Szudera Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on June 3, 2013, before Chief U.S. District Judge Dana L. Christensen, WILLIAM SZUDERA, a 76-year-old resident of Havre, pled guilty to mail fraud. Sentencing has been set for September 26, 2013. He is currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Chad C. Spraker, the government stated it would have proved at trial the following:
From 2001 to 2012, SZUDERA collected workers compensation benefit payments based on his annual representations to the Department of Labor that he was not working and earned no income.
In fact, beginning in1977, SZUDERA was operating a shooting supply business, which made him ineligible for approximately $277,484 in benefits he received from 2001 through 2012.
From 1970 to 1978 SZUDERA was employed by the Bureau of Reclamation and the Western Area Power Administration, which was absorbed into the Bureau of Reclamation in 1977. SZUDERA was injured on the job in 1970. He returned to work in 1971 and received compensation for a partial disability.
In 1984, SZUDERA was added to the Department of Labor's permanent rolls and started receiving workers compensation checks for his wage loss due to his injury. In 1992, the Department of Labor adjusted SZUDERA's compensation after determining that he was able to earn a limited wage. Under that status, SZUDERA collected workers compensation payments based on the limited wage earning capacity of a cashier. In fact, SZUDERA owned and operated a shooting supply business, B&G Shooting Supply since at least 2000.
In a May 2000 application for a Wells Fargo credit card, SZUDERA stated under the job information section that he is self-employed as an owner of a business with a gross monthly salary of $12,500. SZUDERA's tax returns from 2002 to 2010 show that B&G Shooting had gross receipts ranging from approximately $500,000 to $750,000. The returns indicate a profit for every year with the exception of 2006.
Nevertheless, from 2002 to 2011, SZUDERA filled out annual certifications stating that he was unemployed and did not receive any outside income. The annual certifications asked SZUDERA to report all self-employment or involvement in business enterprises, including a family business, even if the activity was part-time or intermittent. Moreover, the certifications asked SZUDERA to report any work or ownership interest in a business enterprise even if the business lost money.
Agents of the Department of Energy interviewed SZUDERA in October 2011. SZUDERA stated that he knew he had to report any additional income he received each year on the annual certification. When asked whether he knowingly received income yet did not report it on the annual certification, SZUDERA answered "yes." SZUDERA's inflated workers compensation benefit checks were mailed from the U.S. Treasury to SZUDERA's home in Havre.
SZUDERA faces possible penalties of 20 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was a cooperative effort between the U.S. Department of Energy - Office of Inspector General and the U.S. Department of Labor - Office of Inspector General.
Warrant Officer Pleads Guility to Theft of Government PropertyRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today KURT ALLEN BENNETT, 41, of Fort Bragg, North Carolinapled guilty before United States District Judge Terrence W. Boyle to conspiring to steal and convert property belonging to the United States Government, in violation of Title 18, United States Code, Section 371, and two counts of theft and conversion of government property, in violation of Title 18, United States Code, Sections 641.
U.S. Attorney Walker stated, “The theft of sensitive military equipment, such as the laser designator rangefinder in this case, puts our soldiers at even greater risk than they already are given the potential for such equipment to fall into the wrong hands. We owe a duty to our troops to protect them from this type of greed and criminal misconduct.”
According to the Indictment filed on January 3, 2013, and information presented in open court, at the time of the offense, BENNETT was an Apache helicopter pilot in the United States Army assigned to the 1st Battalion, 3rd Aviation Regiment, at Hunter Army Air Field in Savannah, Georgia. From October 18, 2008, through October 18, 2009, BENNETT was deployed with his unit to Contingency Operating Base (COB) Speicher in Iraq. During his deployment, BENNETT stole government property, concealed the stolen items in military connexes, and then shipped the stolen goods back to the United States along with the rest of his unit’s property to Fort Drum, New York.
After BENNETT returned to the United State from Iraq, he traveled to Fort Drum and transported the connex and its contents of stolen items with his personal vehicle back to Georgia. The value of the stolen items during his Iraq deployment exceeded $100,000.
In 2010, BENNETT was a Chief Warrant Officer 2 in the United States Department of the Army assigned to the 525th Battlefield Surveillance Brigade, which is part of the 18th Airborne Corps, based at Fort Bragg, North Carolina. From November 14, 2010 through July 30, 2011, BENNETT was deployed with the 525th Battlefield Surveillance Brigade to the United States Forward Operating Base - Spin Boldak and then later at Kandahar Air Field, both U.S. military bases located in Afghanistan. During his deployment to Afghanistan, BENNETT was the Brigade Tactical Operations Officer with designated duties as Officer-in-Charge of a security detail known as the Enabler Security Team which secured movement of staff and service/construction workers throughout the 525th Battlefield Surveillance Brigade’s area of responsibility.
Between December 2010 and July 28, 2011, BENNETT, along with WALKER (already entered his guilty plea) stole more than $1,000,000 worth of government property, concealed the stolen items in military connex, and then shipped the stolen goods back to the United States through Air Force channels. Some of the items stolen included a lightweight laser designator rangefinder (“LLDR”) valued at over $290,000; a Polaris ATV valued at $11,507; two plasma cutters valued at $10,000, and one cargo trailer valued at $8,944. An LLDR is used to locate and designate targets for laser-guided munitions.
“This guilty plea by a military officer today highlights the effectiveness of aggressive investigative efforts by the Defense Criminal Investigative Service and our law enforcement partners,” stated Special Agent in Charge John F. Khin, Southeast Field Office, DCIS. “Chief Warrant Officer Kurt Bennett was held accountable for stealing over $1 million worth of military property while deployed to Afghanistan with the US Army. His self-serving crimes breached his trust and honor as an Army officer, and discredited the U.S. military services, while undermining our warfighting efforts. The DCIS takes seriously any corruption and fraud that waste precious resources needed for military operations, especially in these times of reduced Defense budgets.”
Kurt Bennett abused his position of trust and betrayed his fellow service members, dishonoring the very principles he promised to uphold. The FBI will continue to aggressively investigate those who put their personal greed ahead of the safety of this country’s serviceman and women,” said John Strong, Special Agent in Charge of the Charlotte Division of the FBI.
BENNETT’s co-conspirator was Sergeant First Class Robert Alan Walker. Walker’s sentencing hearing is currently set for August, 2013.
At sentencing, BENNETT faces up to 5 years imprisonment for the conspiracy charge and up to 10 years for each of the theft charges.
The criminal investigation of this case was conducted by United States Defense Criminal Investigative Service; the Federal Bureau of Investigation; the United States Department of Army – Criminal Investigation Command, and the Defense Logistics Agency. Assistant United States Attorney Banumathi Rangarajan is handling the prosecution on behalf of the Eastern District of North Carolina.
U.S. Postal Employee in Ennis, Texas, Admits Stealing MailRead the Press Release
DALLAS — Gary Wayne Thomas, 54, of Ennis, Texas, appeared in federal court this morning, before U.S. Magistrate Judge Irma C. Ramirez, and pleaded guilty to an Information charging theft of mail matter by an officer or employee. He faces a maximum statutory penalty of five years in federal prison, a $250,000 fine and restitution. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, between August 2011 and September 2012, Thomas worked at the Ennis Post Office, and his duties included assisting customers at the retail window, dispatching raw mail, pulling raw mail from collection boxes and sorting outgoing mail dropped in the post office’s lobby. During that time, Thomas embezzled and stole mail items that were intended to be conveyed by the U.S. mail that had been entrusted to him as a U.S. Postal Service employee.
For example, Thomas stole a birthday card containing a $50.00 Wal-Mart gift card that had been sent from a woman to her six-year-old grandson. That piece of mail had been mailed inside the Ennis Post Office. Thomas used the gift card to purchase personal items at Wal-Mart.
The case was investigated by the U.S. Postal Service Office of Inspector General. Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.
U.S. Foreign Service Officer Charged with Conspiracy to Defraud the United States and to Commit Bribery and Visa Fraud-Scheme Allegedly Yielded Millions of Dollars in Bribes-Read the Press Release
WASHINGTON A U.S. Foreign Service Officer, Michael Todd Sestak, 41, has been arrested and charged with conspiracy to defraud the United States and conspiracy to commit bribery and visa fraud, U.S. Attorney Ronald C. Machen Jr. and U.S. Department of State Diplomatic Security Service (DSS) Director Gregory B. Starr announced today.
Sestak appeared this afternoon before the Honorable Magistrate Judge Deborah A. Robinson in the U.S. District Court for the District of Columbia. He was arrested on May 13, 2013, in California and had been ordered held without bond following a hearing in the U.S. District Court for the Central District of California. He was removed to the District of Columbia, where the criminal complaint, dated May 6, 2013, was filed against him. Magistrate Judge Robinson ordered that he remain in custody pending further court proceedings.
According to the government’s evidence, Sestak was the Non-Immigrant Visa Chief in the Consular Section of the U.S. Consulate in Ho Chi Minh City, Vietnam from August 2010 to September 2012.
The investigation revealed that, beginning sometime in or around March 2012, Sestak agreed to approve visas to the United States for a fee. According to an affidavit filed in support of the criminal complaint, he conspired with other U.S. citizens and Vietnamese citizens who worked to recruit customers - or to recruit other recruiters - to the visa scheme. Co-conspirators reached out to people in Vietnam and the United States and advertised a money-back guarantee for a visa to the United States. They particularly advertised that they could obtain visas for people who would not be able to obtain a visa on their own, such as people who had been previously denied or refused entry into the U.S. They encouraged customers with the idea that they could overstay their visas and disappear in the United States.
The affidavit alleges that co-conspirators assisted visa applicants with their applications and prepared them for their consular interviews. Upon submitting an application, the applicants would receive an appointment at the Consulate, be interviewed by Sestak, and approved for a visa. Applicants or their families paid between $20,000 and $70,000 per visa.
Applicants paid for their visas in Vietnam, or by routing money to co-conspirators in the United States. According to the affidavit, Sestak received several million dollars in bribes in exchange for approving the visas. He ultimately moved the money out of Vietnam by using money launderers through off-shore banks. Co-conspirators also had money laundered through off-shore banks to bank accounts in the United States, the affidavit alleges.
To date, the investigation has seized over $2 million from a co-conspirator’s investment account in the United States.
Two women have been charged in the scheme.They are Hong Vo, 27, an American citizen, and Truc Tranh Huynh, 29, a Vietnamese citizen, who are charged with conspiring with Sestak and others. Vo allegedly assisted with the recruitment of visa applicants and communicated with others about the payment for the fraudulent visas. According to charging documents, fraudulent visas granted by Sestak were connected to an Internet Protocol (“IP”) address controlled by Vo. Huynh allegedly participated in the visa scheme by obtaining documents necessary for the visa applications, collecting money and providing model questions and answers for visa applicants. Sestak also allegedly approved a visa for Huynh to the United States, the application for which was submitted by the IP address controlled by Vo.
Vo was recently arrested in Denver and is being held there while awaiting removal to the District of Columbia. Huynh was arrested June 3, 2013, and appeared today in the U.S. District Court for the District of Columbia. She remains held without bond pending further proceedings.
Charges contained in criminal complaints are merely allegations that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
The case is being investigated by the U.S. Department of State Diplomatic Security Service and Assistant U.S. Attorneys Brenda J. Johnson and Mona N. Sahaf of the National Security Section and Catherine K. Connelly of the Asset Forfeiture and Money Laundering Section.
13-194U.S. Attorney John Walsh Appointed by Attorney General Eric Holder to Serve as Co-Chair of Attorney General's Advisory Board White Collar/Fraud SubcommitteeRead the Press Release
DENVER – Attorney General Eric Holder has appointed Colorado U.S. Attorney John Walsh to serve as co-chair of Holder’s White Collar/Fraud Subcommittee. The subcommittee is part of the Attorney General’s Advisory Committee (AGAC), which is comprised of U.S. Attorneys from across the country to provide the Attorney General with guidance on a variety of critical Department of Justice issues. Walsh recently concluded a two-year appointment to that committee. U.S. Attorney Walsh joins U.S. Attorney Melinda Haag, who serves the Northern District of California, who is currently serving as co-chair of the White Collar/Fraud Subcommittee.
The White Collar/Fraud Subcommittee has been in the forefront of the U.S. Attorney’s efforts to prosecute white collar crime, including investor fraud. In Colorado, while Walsh has been U.S. Attorney, there have been a number of significant fraud cases, including the prosecution of Philip Lochmiller Jr. and Sr., Mark Yost, Michael Van Gilder, Gerald Rising and James Burg.
In addition to Walsh’s role as co-chair of the White Collar/Fraud Subcommittee, he also serves as one of five national co-chairs of the Attorney General’s Residential Mortgage-Backed Securities (RMBS) Fraud Working Group. The Residential Mortgage-Backed Security (RMBS) Working Group of the Financial Fraud Enforcement Task Force was established by the Attorney General in late January 2012. The working group has been dedicated since February 2012 to initiating, organizing, and advancing new and existing investigations by federal and state authorities into fraud and abuse in the RMBS market that helped precipitate the 2008 financial crisis. The RMBS Working Group is part of the Financial Fraud Enforcement Task Force (FFETF).
“It is an honor to serve as co-chair of these critical white collar crime prosecution groups,” said U.S. Attorney John Walsh. “Since first becoming an Assistant U.S. Attorney in the 1980s, prosecution of white collar offenses has been a focus and a passion of mine, as reflected in the many cases I’ve worked both while an Assistant U.S. Attorney in Los Angeles as well as while serving as U.S. Attorney here in Colorado.”
Walsh has served as Colorado’s U.S. Attorney since August 2010, after being nominated by President Barack Obama and subsequently unanimously confirmed by the U.S. Senate.
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Two of five co-defendants convicted of embezzling from Trident Seafoods sentenced to eight months and 28 months in prisonRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Kodiak man and a woman from Corpus Christi, Texas, were sentenced for their role in embezzling over half a million dollars from Trident Seafoods.
Valerie Olivares, 35 of Corpus Christi, Texas, was sentenced today by Chief U.S. District Court Judge Ralph R. Beistline, to eight months prison for her role in aiding Isairis Wolfe in embezzling $45,000 from Trident Seafoods.
Jeremy Smith, 31 of Kodiak, Alaska, was also sentenced today by Judge Beistline to 28 months prison for his role in aiding Wolfe in embezzling $128,400 from Trident Seafoods.
According to Assistant U.S. Attorney Aunnie Steward, who prosecuted the case, from January 2008, and continuing until August 2010, the lead defendant Isairis Wolfe used her position as the book keeper for Trident Seafoods in Kodiak, Alaska, to write Trident checks to four of her personal associates: Anne Wilson; Jeremy Smith; Valerie Olivares; and Jamie Fathke. Wolfe, using her check writing authority at Trident, drafted approximately 52 checks on a Trident account for approximately $500,000, and made them payable to her personal associates Wilson, Smith, Olivares, and Fathke, as well as to Wilson's minor son L.E. The checks were negotiated by Wolfe and her associates and they shared the proceeds. Wolfe concealed the fraud by creating fraudulent accounting records so that the payments appeared to be legitimate.
During the three-year scheme, Smith negotiated 16 fraudulent checks, taking a break from the scheme only while he was incarcerated on unrelated weapons charges in 2009. Olivares negotiated three fraudulent checks. Smith and Olivares kept half of the money from the fraudulent checks and provided the remaining half to Wolfe. The scheme came to an end when Wolfe was fired from Trident Seafoods for performance related reasons and was no longer in a position to write the fraudulent checks. The scheme was not discovered until after Wolfe was fired and a review of the books and records was conducted by Trident.
The leader of the scheme, Isairis Wolfe, is scheduled for sentencing on June 11, 2013. Jamie Fathke was sentenced on January 9, 2013, to four months jail for her role in aiding Wolfe in embezzling $30,000 from Trident Seafoods. Anne Wilson was sentenced on March 21, 2013, to 16 months prison for her role in aiding Wolfe in embezzling $289,000 from Trident Seafoods.
Ms. Loeffler commends the FBI for the investigation of this case.
Two Sentenced for Separate Drug Crimes in Connection with Aryan Knights InvestigationRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced today the sentencing of Dennis James, 47, of San Pablo, California, and Jesse Ray Delgado, 47, of Boise, Idaho, for conspiracy to distribute methamphetamine. The defendants were indicted in separate cases.
Chief U.S. District Judge B. Lynn Winmill sentenced James on Monday to 120 months in federal prison followed by eight years of supervised release for conspiring to distribute methamphetamine. According to information presented in court, James conspired with a co-defendant to distribute methamphetamine in June 2012. At a court hearing on March 12, 2013, James admitted that he sold approximately one-half ounce of methamphetamine to a confidential informant in June 2012. James faced an enhanced sentence because he was previously convicted of a felony drug offense in 2006. His lengthy criminal history includes voluntary manslaughter. James’ co-defendant, Nicholas Andrew Steele, was sentenced in April to 60 months in prison for distribution of methamphetamine.
U.S. District Judge Edward J. Lodge sentenced Delgado today to 168 months in prison followed by five years of supervised release. He pleaded guilty to the charge on March 12, 2013. Delgado admitted in court that he entered into a conspiracy with other individuals to distribute methamphetamine. He acknowledged that he purchased methamphetamine and distributed it in the Boise area. On February 16, 2012, he sold approximately one-half ounce of methamphetamine to a confidential informant. On March 14, 2012, law enforcement agents served a search warrant on Delgado’s residence and recovered over three ounces of methamphetamine. Delgado faced an enhanced sentence because of his prior conviction for possession of controlled substances in 2001.
The cases are part of the Aryan Knights investigation in which James, Steele, Delgado and 20 other individuals were charged as a result of a long-term investigation by the Treasure Valley Metro Violent Crime Task Force. The investigation began when the task force focused on illegal drug distribution by the “Aryan Knights,” a gang active both in prison and on the streets throughout Idaho. Through the investigation, law enforcement agents identified Aryan Knights gang members who were trafficking methamphetamine, as well as associates of the gang who were the source of that methamphetamine.
All 23 defendants have pleaded guilty, 17 have been sentenced, and six are awaiting sentencing.
The Treasure Valley Metro Violent Crimes Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. The joint investigation also included the Organized Crime and Drug Enforcement Task Force (OCDETF), a cooperative law enforcement effort of the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service.
The Aryan Knights cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Two Rapid City Men Indicted for Conspiracy to Defraud the United States and Harboring AliensRead the Press Release
United States Attorney Brendan V. Johnson announced that two additional individuals have been indicted by a federal grand jury for conspiracy to harbor aliens, harboring aliens, and conspiracy to defraud the United States. The alleged fraud is in connection with contracts entered into with the U.S. Forest Service. Nine individuals were previously indicted in relation to these offenses.
Raul D. Munoz, age 24, and Rogelio Escalante Jr., age 24, both of Rapid City, South Dakota were indicted on May 21, 2013. The defendants appeared in front of U.S. Magistrate Judge John E. Simko on May 31, 2013 and pled not guilty to the charges. The maximum penalty upon conviction is 10 years’ imprisonment and/or a $250,000 fine.
The indictments are a result of a criminal investigative operation conducted by U.S. Immigration and Customs Enforcement's Homeland Security Investigations, in cooperation with the U.S. Forest Service, Rapid City Police Department, the Pennington County Sheriff's Office, SD Division of Criminal Investigation, Custer County Sheriff’s Office, U.S. Department of Labor, and other federal and state law enforcement agencies.
The charges contained in the indictment are merely accusations, and Escalante and Munoz are presumed innocent unless and until they are proven guilty.
Two Port Saint Lucie Men Sentenced on Firearms Conspiracy ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, announce yesterday’s sentencing of defendants Vincent Olavarria, Jr., 46, and Darren D. Cuff, 26, both of Port St. Lucie, on charges of conspiracy to violate federal firearms sales laws and making false statements to a federal officer. Olavarria had previously pled guilty to conspiracy to violate federal firearms laws, in violation of Title 18, United States Code, Section 371. Cuff had previously pled guilty to making false statements to a federal officer, in violation of Title 18, United States Code, Section 1001, in the course of the investigation of this case. At yesterday’s hearing, U.S. District Judge K. Michael Moore sentenced Olavarria to 34 months in prison to be followed by two years of supervised release; Judge Moore sentenced Cuff to 21 months in prison to be followed by two years of supervised release.
From March 2010 through December 2011, defendant Olavarria was a federally licensed firearms dealer in Port St. Lucie. Olavarria conspired with other defendants including defendant Cuff to falsify firearms sales records and conceal the actual buyers and true destination of sixty rifles that Olavarria had sold to an undocumented buyer. In concert with Olavarria and at his direction, Cuff and others pretended to be the buyers, and lied to ATF agents investigating the sales and transfer of the rifles, claiming to have taken the rifles and resold them on the street, when in fact they had all gone to another purchaser as yet unknown to ATF.
Mr. Ferrer commended the investigative efforts of the ATF. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.
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.