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Monday 22 April 2013
Clean Air Act Settlement with Wisconsin Utilities to Reduce Emissions by More Than 50,000 Tons AnnuallyRead the Press Release
The Department of Justice, the U.S. Environmental Protection Agency (EPA), and the United States Attorney’s Office for the Western District of Wisconsin announced a Clean Air Act (CAA) settlement with Wisconsin Power and Light Company (WPL) that will significantly reduce air pollution from three coal-fired power plants located near Portage, Sheboygan, and Cassville, Wis.
WPL operates the plants that are covered by the settlement, and the other defendants, Wisconsin Public Service Corporation (WPSC), Madison Gas and Electric Company, and Wisconsin Electric Power Company, are co- and former owners of the units. WPL and its co-defendants agreed to invest more than $1 billion in pollution control technology, spend a total of $8.5 million on environmental mitigation projects, and pay a civil penalty of $2.45 million to resolve alleged violations of the CAA.
“This settlement will improve air quality in Wisconsin and downwind areas by significantly reducing releases of sulfur dioxide, nitrogen oxide and other harmful pollutants,” said Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice. “This agreement also demonstrates the Justice Department’s commitment to enforcing the New Source Review provisions of the Clean Air Act, which help ensure clean air for those communities affected by large sources of air pollution.”
“EPA is committed to protecting communities by reducing air pollution from the largest sources of emissions,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “The pollution reductions and the significant investment in local environmental projects required under this agreement will ensure that the people of Wisconsin and neighboring states have cleaner, healthier air.”
“One of the many things that makes Wisconsin special is our clean air,” said John W. Vaudreuil, United States Attorney for the Western District of Wisconsin. “With this settlement, the facilities’ owners are held accountable and required to mitigate the harm caused by their unlawful pollution of Wisconsin’s air. Cleaner air protects the health of our citizens, our forests, crops, and water, and all of us who treasure Wisconsin’s clean environment. The United States Attorney’s Office for the Western District of Wisconsin is committed to taking a leadership role in protecting the environment in Wisconsin.”
Under the settlement, the defendants must install new pollution control technology on the three largest units, continuously operate the new and existing pollution controls, and comply with stringent pollutant emission rates and annual tonnage limitations. The settlement also requires WPL and WPSC to permanently retire, refuel or repower four additional coal-fired units at the Edgewater and Nelson Dewey plants. The actions taken to comply with this settlement will result in annual reductions of sulfur dioxide (SO2), oxides of nitrogen (NOx) and particulate matter (PM) of approximately 54,000 tons from 2011 levels. This settlement covers all seven coal-fired boilers at the Columbia, Edgewater, and Nelson Dewey power plants.
The settlement also requires the defendants to spend $8.5 million on projects that will benefit the environment and human health in communities located near the facilities, including $260,500 to the U.S. Forest Service and $260,500 to the National Park Service, to be used on projects to address the damage done from the emissions. The remaining $7.479 million will be spent on a combination projects, including up to $2.1 million on land acquisition and restoration; up to $5 million on a long term major solar photovoltaic (PV) power purchase agreement or a solar PV panels installation project; and up to $2 million on renewable energy resource enhancements for existing wind farms and hydroelectric facilities.
Reducing air pollution from the largest sources of emissions, including coal-fired power plants, is one of EPA’s National Enforcement Initiatives for 2011-2013. SO2 and NOx, two key pollutants emitted from power plants, have numerous adverse effects on human health and are significant contributors to acid rain, smog and haze. These pollutants are converted in the air to fine particles of particulate matter that can cause severe respiratory and cardiovascular impacts, and premature death. Reducing these harmful air pollutants will benefit the communities located near the facilities, particularly communities disproportionately impacted by environmental risks and vulnerable populations, including children. Because air pollution from power plants can travel significant distances downwind, this settlement will also reduce air pollution outside the immediate region.
This is the 26th judicial settlement secured by the Justice Department and EPA as part of a national enforcement initiative to control harmful emissions from power plants under the CAA’s New Source Review requirements. The total combined sulfur dioxide and nitrogen oxides emission reductions secured from these settlements will exceed 2 million tons each year once all the required pollution controls have been installed and implemented.
Sierra Club is co-plaintiff to the settlement.
The settlement was lodged with the U.S. District Court for the Western District of Wisconsin, and is subject to a 30-day public comment period and final court approval. A copy of the consent decree lodged today is available on the Department of Justice website at www.justice.gov/enrd/Consent_Decrees.html
More information about the settlement: www.epa.gov/enforcement/air/cases/wisconsinpower.html
More information about EPA’s enforcement initiative: www.epa.gov/compliance/data/planning/initiatives/2011airpollution.html
Cannonball Man Pleads Guilty to Assaulting Three Federal OfficersRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on April 22, 2013, SkylerWhite Bull, 25, Cannonball, N.D., pleaded guilty in U.S. District Court to three counts of assaulting a federal officer.
On Sept. 13, 2012, White Bull was taken into custody by Bureau of Indian Affairs law enforcement officers. While being booked into the Standing Rock Correctional Facility in Fort Yates, White Bull kicked two officers and bit another officer in the hand.
Each charge of assaulting a federal officer carries a statutory maximum penalty of eight years in federal prison and a $250,000 fine.
The case was investigated by the Bureau of Indian Affairs – Standing Rock Agency, the Standing Rock Police Department, with the assistance of the Standing Rock Tribal Prosecutor’s Office.
Sentencing for White Bull has been scheduled for July 15, 2013, in U.S. District Court in, Bismarck, N.D., at 2:15 p.m.
Assistant U.S. Attorney Gary Delorme is prosecuting the case.
Cannonball Man Pleads Guilty to Assault with a Dangerous WeaponRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on April 22, 2013, Burdon Lester, 29, Cannonball, N.D., pleaded guilty in U.S. District Court to a charge of assault with a dangerous weapon.
Lester struck a woman in the face with a special type of gloves with hardened plastic knuckles. After she fell to the ground, Lester continued to kick her.
The charge of assault with a dangerous weapon carries a statutory maximum penalty of 10 years in federal prison and a $250,000 fine.
The case was investigated by the Bureau of Indian Affairs – Standing Rock Agency.
Sentencing for Lester has been scheduled for August 12, 2013, at U.S. District Court in Bismarck, N.D.
Assistant U.S. Attorney Gary Delorme is prosecuting the case.
Canadian Police Officer Sentenced for Exporting Drugs from the United States into CanadaRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Geoffrey Purdie, 41, of Niagara, Ontario, Canada, who was convicted of exporting anabolic steroids from the United States into Canada, was sentenced to one year in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that Purdie was employed as a constable with the Niagara Regional Police. On several occasions in November and December 2011, the defendant entered the United States and retrieved packages containing steroids that had been shipped to a business in the U.S. Purdie then smuggled the steroids from the United States into Canada. The defendant presented his official identification as a law enforcement officer to Immigration personnel at the border in order to return to Canada.
The sentencing is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero and the Niagara Regional Police, under the direction of Chief Jeffrey McGuire.Buffalo Man Sentenced on Drug ChargesRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Jermaine Howard, 38, of Buffalo, N.Y., who was convicted of using a communication facility (telephone) to facilitate a federal narcotics felony, was sentenced to 77 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Robert C. Moscati, who handled the case, stated that Howard was intercepted during the execution of court-authorized wiretaps discussing and arranging illegal narcotics transactions with co-defendant David Manuel. Howard was arrested along with 19 others and charged with being involved in a multi-kilogram cocaine distribution network between Buffalo, New York and Houston, Texas. To date, 18 of the 20 defendants have been convicted.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation Safe Streets Task Force under the direction of Acting Special Agent in Charge Richard M. Frankel, the Drug Enforcement Agency under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, and the Bureau of Alcohol, Tobacco under the direction of Resident Agent in Charge Frank Christiano.Bricktown Gang Member Sentenced to 89 Months in PrisonRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York, announces that AMADIS HUNTER, age 25, of Syracuse, was sentenced today in U.S. District Court in Syracuse to 89 months imprisonment for his role in conspiring to engage in a pattern of racketeering activity through his membership in the Bricktown Gang, a violent street gang operating on the streets of Syracuse.
As part of his plea, HUNTER admitted that the Bricktown Gang operated within the City of Syracuse from at least 2000 through the present and that members of the Bricktown Gang: (1) maintain a specific geographic territory within the City of Syracuse in which only gang members can sell crack cocaine, cocaine and marijuana; (2) protect that exclusive crack distribution territory with violence if necessary; (3) obtain drugs from suppliers in New York City and elsewhere; (4) project a very violent attitude and respond to violence with violence in order to preserve their stature in the gang community; (5) on occasion use hand signs, wear blue colored bandanas and have tattoos, all of which are intended to signify their gang membership; (6) use criteria such as willingness to use violence, ability to sell drugs, and familial connections to determine membership; and (7) routinely carry and use firearms in connection with their gang activity.
This case involved multiple acts of violence and drug distribution carried out by various gang members on a regular basis, as alleged in the Indictment, including but nor limited to 2 instances of knife violence, 2 murders, 8 other shootings, 7 other acts of gun possession, 12 acts of crack distribution and/or possession with intent to distribute crack, and a major gang assault that occurred within a Denny’s restaurant on Erie Boulevard in Dewitt, New York.
With respect to the two murders, the Indictment includes allegations that gang members killed innocent victims on two separate occasions as gang members sought retaliation against rival gang members. One such allegation involves the November 2010 murder by Bricktown gang member SAQUAN EVANS of a 20 month old child named Rashad Walker, Jr., as Walker sat in a car seat with his mother by his side in the 300 block of Coolidge Avenue. The other murder allegation involves the September 2007 fatal shooting by Bricktown gang members JARRELL WILLIAMS and ERNEST HESTER of Anthony Ford in the 1600 block of East Fayette Street, Syracuse. A female who was with Ford at the time was shot in the head but survived. EVANS, WILLIAMS and HESTER have not pled guilty and are expected to go to trial on this federal RICO charge later this summer. The 11 other defendants 1 in this case have all pled guilty and many of them have already been sentenced to varying lengths of imprisonment.
This prosecution resulted from a long-term investigation conducted by the Syracuse Gang Violence Task Force, which is comprised of agents and detectives from the following agencies: United States Department of Justice, Bureau of Alcohol, Tobacco, and Firearms (Syracuse Office), the Syracuse Police Department, the Onondaga County Sheriff's Department, the New York State Troopers, and the United States Marshals Service. The Onondaga County District Attorney’s Office also assisted in the investigation.
Further questions or inquiries may be directed to Assistant U.S. Attorney, John M. Katko, who is handling the case, at (315) 448-0672.
Brenda Velazquez-Corchado, Found Guilty of Conspiracy to Commit Bribery Concerning Programs Receiving Federal FundsRead the Press Release
SAN JUAN, PR – Friday evening Brenda Velàzquez-Corchado, a former procurement official with the Puerto Rico Department of Education (PR DOE) was found guilty of conspiracy to commit a violation of Title 18 USC Section 666(a)(1)(B), Bribery Concerning Programs Receiving Federal funds, announced United States Attorney Rosa Emilia Rodríguez-Vélez. United States District Court Senior Judge Juan Pérez-Giménez presided the trial. The sentencing hearing was scheduled for July 19, 2013 at 10:00 am.
Defendant Velàzquez-Corchado was the sole defendant remaining of a 13 person indictment filed against various PR DOE officials, which included the Chief Procurement Officer of the PR DOE Luis Conde-Rosa, and various company officials doing business with the Department. The jury found that between January 2008 through February 2010, the defendant conspired with others to corruptly solicit, demand, give and accept things of value, goods and cash, intending to be influenced and rewarded in connection with a transaction and a series of transactions. The evidence presented at trial showed that approximately $2,900,000.00 dollars in contracts were awarded to companies where the defendant received over $25,000 in bribes, which included cash and goods.
The defendant is facing a possible maximum sentence of 10 years in prison.
“These individuals defrauded education programs, with the assistance of public employees who abused their positions for personal gain,” said United States Attorney, Rosa Emilia Rodríguez-Vélez. “We will continue to investigate and prosecute those who engage in corrupt acts which directly affect federal programs and the availability of these funds for its intended recipients,” stated Rodríguez-Vélez.The case was prosecuted by Assistant United States Attorneys Julia Díaz-Rex and Héctor Ramírez. The investigation was led by the U.S. Department of Education, Office of the Inspector General (DOE-OIG), with the collaboration of the Federal Bureau of Investigation (FBI) and the Comptroller’s Office in Puerto Rico.
Baltimore Immigration Judge Participates in Naturalization CeremonyRead the Press Release
BALTIMORE --Immigration Judge Lisa Dornell from the Executive Office for Immigration Review, Baltimore Immigration Court, delivered the keynote speech and administered the oath of allegiance to approximately 75 candidates during a naturalization ceremony at the George H. Fallon Federal Building in Baltimore, Md., on April 19, 2012. The Baltimore District Office of U.S. Citizenship and Immigration Services, Department of Homeland Security, hosted the ceremony.
Biographical Information
Attorney General Janet Reno appointed Judge Dornell in April 1995. Judge Dornell received a bachelor of arts degree in 1983 from the University of Vermont and a juris doctorate in 1986 from the University of Texas at Austin School of Law. From 1990 to 1995, Judge Dornell served as senior litigation counsel, Office of Immigration Litigation, Civil Division, Department of Justice. From 1986 to 1990, she served as a trial attorney for the former Immigration and Naturalization Service (INS), New York district office, and as an assistant general counsel, INS Headquarters, Washington, D.C. Judge Dornell lectures on immigration topics and court procedure at several local law schools. She is a member of the District of Columbia and State of Texas Bars.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Executive Office for Immigration ReviewApril 21-27 Is Crime Victims’ Rights WeekRead the Press Release
MINNEAPOLIS—U.S. Attorney B. Todd Jones today announced that this week is National Crime Victims’ Rights Week. The theme of this year’s observance, “New Challenges, New Solutions,” honors local champions of crime victims’ rights and celebrates the spirit that will advance the progress these heroes have to date achieved.
Awareness of federal crime victims and the issues they face was greatly heightened in 2004, with the enactment of the Crime Victims’ Right Act (“CVRA”). That act grants federal crime victims certain enforceable rights during criminal proceedings, including the right to be heard in court and the right to receive full and timely restitution as provided by law. Crime victims also have the right to be notified of pertinent court events, such as indictment, trial, and sentencing. In Fiscal Year 2010, U.S. Attorney offices nationwide collectively notified federal crime victims of nearly eight million case events. In the District of Minnesota alone, approximately 212,099 such notices were provided.
The U.S. Attorney’s Office in the District of Minnesota has a dedicated Victim-Witness team. In addition to ensuring compliance with victims’ rights, as set forth in federal statute, team members accompany crime victims to court, make referrals for counseling, and assist in accessing victim compensation funds. Nationally, in Fiscal Year 2010, an estimated 19,000 federal crime victims were accompanied to court and more than 23,000 were referred for victim services.
Another way in which U.S. Attorney offices assist federal crime victims is by recovering the monetary losses incurred by them during the related crime. This is particularly important in cases involving financial fraud, when victims often lose their retirement funds or their children’s college money to a smooth-talking crook. Of course, the government cannot guarantee all losses will be restored, but in Fiscal Year 2011, U.S. Attorney offices nationwide, through their Financial Litigation Units, collected a total of approximately $53 in federal restitution for crime victims. In Fiscal Year 2011, the U.S. Attorney’s Office in the District of Minnesota collected approximately $15.4 million for individual victims, while more than $161,000 was recovered for federal agencies who had been victimized by criminal activity.
Finally, the federal government assists victims of violent crime by paying for related expenses, such as lost wages, counseling, and medical costs. Moreover, that assistance is not provided by tax dollars. Rather, the funds come from the Federal Crime Victims Fund, which is supported through the collection of criminal fines and penalties.
For more information about National Crime Victims’ Rights Week, visit http://ovc.ncjrs.gov/ncvrw/.Anthony Lamont Singleton Sentenced to Serve 110 Months in Prison for Being A Felon in Possession of A FirearmRead the Press Release
GREENEVILLE, Tenn. – Anthony Lamont Singleton, 37, of Kingsport, Tenn., was sentenced to serve 110 months in prison, by the Honorable J. Ronnie Greer, U.S. District Judge. Upon release from prison, he will be subject to supervised release by the U.S. Probation Office for three years.
Singleton pleaded guilty in October 2012 to possession of a firearm after having previously been convicted of a felony. He was arrested after a verbal altercation with Kingsport residents escalated when Singleton displayed a firearm. He faced a maximum statutory sentence of 120 months for the offense.
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Singleton included the Kingsport Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney J. Gregory Bowman represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
$1 Million Settlement Enhances Land and Sea in the Eastern District of TexasRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas — U.S. Attorney John M. Bales announced a settlement reached with a European shipping corporation has resulted in significant enhancements to nature conservation groups in the Eastern District of Texas.
The $1 million settlement was announced at a press conference on the banks of Village Creek in Hardin County, Texas today. CIMPSHIP Transportes Maritimos, S.A., a Portuguese corporation headquartered in Funchal, Portugal, was initially indicted in 2010 and charged with conspiring to violate environmental laws causing willful pollution of waterways within the Eastern District of Texas.
According to the indictment, CIMPSHIP owned the Niebla, a 38,000 ton ocean-going ship which was operated as a bulk-freight carrier transporting bulk cargo from various ports in the Gulf Coast including Port Arthur, Texas. It is alleged that from Mar. 2008 through Aug. 2009, Niebla crew members failed to maintain an Oil Record Book as required by federal law.
A settlement agreement was reached between the government and CIMPSHIP in which CIMPSHIP agreed to pay a $1 million community service payment to be used for local conservation efforts in lieu of prosecution. Federal statutes authorize such settlements to Congressionally-approved Foundations.
Of the $1 million, $600,000 was provided to The Conservation Fund, a nonprofit organization that works to conserve special places in Texas and across the country, and used to purchase a critical parcel of land in a sensitive portion of the Big Thicket National Preserve. The 361 acres are located near Village Creek in Hardin County.The remaining $400,000 was provided to the National Marine Sanctuary Foundation and used to support research and monitoring activities at the Flower Garden Banks National Marine Sanctuary. The Flower Garden Banks National Marine Sanctuary is home to the northernmost coral reef on the U.S. continental shelf and boasts a habitat that is relatively pristine, due in part to protective sanctuary regulations. The sanctuary is located approximately 90 miles southwest of Sabine Pass, Texas in the Gulf of Mexico.
This case was investigated by the U.S. Coast Guard and prosecuted by Assistant U.S. Attorney Joseph R. Batte and former Assistant U.S. Attorney Kevin D. Collins
Sunday 21 April 2013
Campton, Kentucky Residents Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
LEXINGTON, KY - Dena Lynn Brooks, 40, Marcus Jessie Adkins, 39, and Courtney Junior Noble, 60, each of Campton, KY., were recently sentenced, by United States Senior District Judge Joseph M. Hood, for conspiring to distribute 50 grams or more of a mixture or substance containing methamphetamine. Noble was also sentenced for possessing a firearm in connection with a drug trafficking offense. Brooks and Noble were each sentenced to 10 years imprisonment. Adkins, because of prior felony drug convictions, was sentenced to almost 22 years imprisonment.
In May 2013, Brooks, Adkins, and Noble each pleaded guilty to the offense. The facts established that, on January 28, 2013, Brooks obtained approximately three ounces of methamphetamine for Adkins and Noble. The methamphetamine was intended for distribution in Wolfe County. After obtaining the methamphetamine, Brooks provided it to Adkins and Noble at a motel room in Lexington. A short while later, a vehicle driven by Adkins, in which Noble was a passenger, was stopped by law enforcement. Noble had the methamphetamine in his pocket and a loaded semiautomatic pistol in his waistband.
Under federal law, Brooks, Adkins, and Noble must each serve 85 percent of their prison sentence, and, upon release, will be under the supervision of the United States Probation Office, for at least 3 years for Noble and at least 8 years for Brooks and Adkins.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Robert L. Corso, Special Agent in Charge, Drug Enforcement Administration, and Rodney Brewer, Commissioner, Kentucky State Police, jointly made the announcement.
The investigation was conducted by the DEA and KSP. The United States was represented in the case by Assistant United States Attorney Robert M. Duncan, Jr.
Friday 19 April 2013
Yonkers Man Arrested on Charges of Impersonating an FBI AgentRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today that AYMAN RABADI , 52, of Yonkers, New York, was arrested yesterday by agents of the Federal Bureau of Investigation on charges of impersonating a Special Agent of the FBI. According the Complaint, filed in federal district court in White Plains today, from November 2010 to date, RABADI has, in at least three separate instances, falsely represented to others that he was a Special Agent with the FBI and offered them various forms of assistance including obtaining identification documents and obtaining the release of their relatives from jail.
Manhattan U.S. Attorney Bharara stated: “Rabadi’s ability to prey on vulnerable victims by pretending to be a federal agent came to an end today when he tried to extract money from a real federal agent.”
FBI Assistant Director-in-Charge Venizelos stated: "Rabadi took the easy road to fast money by impersonating an FBI agent. But the easy road was the crooked path that ultimately led to his arrest by the FBI."
According to the allegations in the Complaint unsealed today in White Plains federal court:
An undercover FBI agent acting as the niece of one of RABADI’s victims paid RABADI $10,000 cash yesterday at a Yonkers restaurant. The money was, purportedly, a down payment towards the $300,000 RABADI had asked for in exchange for obtaining the release of one of the victim’s relatives from jail. RABADI was arrested immediately after leaving the restaurant and was in possession of the $10,000 cash. Also, RABADI has an extensive criminal history including a 2008 conviction in the state of New Jersey for the felony of Theft by Deception. In that case, RABADI created the false impression that there were criminal charges pending against the victim, that RABADI was connected to law enforcement, and that he could cause the dismissal of the charges against the victim for $75,000.
At his arraignment before U.S. Magistrate Paul E. Davison in White Plains this afternoon, Judge Davison ordered that RABADI be held without bail pending his next court appearance, a bail hearing on Tuesday, April 23, 2013, at 10 a.m.
If convicted on the charge in the Complaint, RABADI faces a maximum sentence of three years imprisonment and a $250,000 fine.
Mr. Bharara praised the work of the FBI in this investigation.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney Elliott B. Jacobson is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty
Wolcott Man Admits Role in Illegal Campaign Contribution SchemeRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut announced that GEORGE TIRADO, 36, of Wolcott, pleaded guilty today before United States District Judge Janet Bond Arterton in New Haven to a federal conspiracy charge stemming from a scheme to direct illegal campaign contributions into the campaign of a candidate for the U.S. House of Representatives.
According to court documents and statements made in court, in August 2011, the State of Connecticut applied for a court order enjoining Roll Your Own (“RYO”) smoke shops from continuing to operate without complying with state law governing tobacco manufacturers. RYO smoke shops are retail businesses that sell loose smoking tobacco and cigarette-rolling materials and offer customers the option of paying a “rental” fee to insert the loose tobacco and the rolling materials into a RYO machine, which is capable of rapidly rolling large quantities of cigarettes. Customers did not pay a tax on the RYO cigarettes when rolled by the RYO machines, in contrast to cigarettes purchased over-the-counter.
TIRADO and Paul Rogers co-owned Smoke House Tobacco, a RYO smoke shop with two locations in Waterbury. Fearing that the Connecticut General Assembly would enact legislation harmful to RYO smoke shop owners’ business interests during the 2012 legislative session, TIRADO, Rogers, Harry Raymond “Ray” Soucy and others engaged in a scheme to direct conduit campaign contributions into the campaign of a candidate for the U.S. House of Representatives. The candidate was also a member of the Connecticut General Assembly. As part of the scheme, the co-conspirators recruited multiple individuals to serve as conduit contributors to the campaign. These individuals permitted checks to be written in their own names to the campaign and were reimbursed with cash, thereby concealing the fact that RYO smoke shop owners were contributing to the campaign.
On November 15, 2011, TIRADO obtained a signed blank check from one of his smoke shop employees. TIRADO then made the check payable to the campaign in the amount of $2,500, and assured the employee that she would be reimbursed. That same evening, TIRADO attended a campaign fundraising event where he completed a contribution form in the employee’s name. The contribution form contained a representation that the contribution was being funded by the individual named on the form. He then provided the check to Rogers who delivered it to a campaign employee.
The next morning, TIRADO provided another conduit contribution in the amount of $2,500 to Soucy prior to a meeting that they had scheduled with the candidate. Soucy then gave the check to a campaign employee.
On November 21, 2011, TIRADO deposited $2,500 in cash into the checking account of the employee who had served as a conduit contributor on November 15. The $2,500 came from the business proceeds of Smoke House Tobacco.
In December 2011, Rogers, Soucy and others attended another fundraising event and delivered two more $2,500 conduit contributions to the campaign.
On approximately January 31, 2012, the Campaign Committee submitted to the Federal Election Commission (“FEC”) a report of the Campaign Committee’s receipts and disbursements for the period October 1, 2011 through December 31, 2011. The report falsely stated the source and amount of the four $2,500 contributions that were received and deposited by the Campaign Committee during that time period.
In the spring of 2012, the conspirators made additional illegal campaign contributions totaling $17,500.
TIRADO pleaded guilty to one count of conspiracy to make false statements to the FEC and to impede the FEC’s enforcement of federal campaign finance laws. Judge Arterton has scheduled sentencing for July 23, 2013, at which time TIRADO faces a maximum term of imprisonment of five years and a fine of up to $250,000.
Rogers, Soucy and four others, including Joshua Nassi, who served as the campaign manager for the campaign of the candidate for the U.S. House of Representatives, have also pleaded guilty to charges related to this scheme and await sentencing.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Christopher M. Mattei and Eric J. Glover.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Williamson County Man Sentenced on Methamphetamine ConspiracyRead the Press Release
On April 17, 2013, Terry C. Zimmerman, 36, of Marion, Ill., was sentenced in United States District Court in Benton on a one-count indictment charging conspiracy to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
Zimmerman, who had previously pled guilty to the methamphetamine charge, was sentenced to 240 months’ imprisonment, 10 years’ supervised release, and was fined $200. The conspiracy offense occurred between 2008, and January 30, 2012, in Williamson, Jackson, Saline, and Franklin Counties. At sentencing, the district judge found that Zimmerman was responsible for the manufacture of more than one kilogram of methamphetamine. The district judge further found that Zimmerman’s conduct created a substantial risk of harm to human life, when Zimmerman drove recklessly through a residential neighborhood and crashed into a Mt. Vernon police car while Zimmerman had an active methamphetamine lab in his vehicle. Zimmerman’s sentence was also enhanced because he had a prior felony state drug conviction. Six co-defendants have previously been sentenced for their role in the methamphetamine conspiracy. One co-defendant has pled guilty and is awaiting sentencing.
The ongoing investigation is being conducted by the Drug Enforcement Administration and Jackson County Sheriff’s Office, with the assistance of the Murphysboro Police Department, Marion Police Department, Williamson County Sheriff’s Office, Saline County Sheriff’s Office, Illinois State Police, Carrier Mills Police Department, Harrisburg Police Department, and United States Marshals Service.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
White Center Bank Robber Sentenced to 8+ Years in PrisonRead the Press Release
A 31- year-old man who robbed a Chase Bank branch in the White Center neighborhood of southwest Seattle at gunpoint last year was sentenced today in U.S. District Court in Seattle to 102 months (8.5 years) in prison and three years of supervised release, announced U.S. Attorney Jenny A. Durkan. BRYAN ALLEN HILL, was convicted of armed bank robbery and brandishing a firearm during a crime of violence following a jury trial in January 2013. HILL was arrested a few blocks from the bank on July 25, 2012, with the gun and cash that had been taken in the robbery. At sentencing U.S. District Judge Ricardo S. Martinez said this is “a very, very serious offense… basically terrorizing the individuals in the bank.”
According to records filed in the case and testimony at trial, HILL entered the bank with a blue bandana pulled up over his face. He pointed a handgun at the teller’s head and ordered the teller to put all the cash in the bag. While stuffing money into his bag, the bandana fell off of HILL’s face and the teller was able to see his face. Other workers in the bank were able to alert law enforcement and one wrote down a description of the robber. Within minutes of the robber leaving the bank, Seattle Police had a description and were searching the area around the bank for the suspect.
A Seattle Police officer spotted someone who was similar in appearance to the suspected robber walking quickly from the area. The officer ordered the man to stop and kneel on the ground. Witnesses from the bank were brought to the scene and identified the man, HILL, as the bank robber. When police searched the bag he was carrying they found the gun, cash, and some of the clothing HILL had removed following the bank robbery.
HILL was prosecuted as part of the Project Safe Neighborhoods program. Unveiled in May 2001, Project Safe Neighborhoods (PSN) is a comprehensive and strategic approach to gun law enforcement. PSN is a nationwide commitment to reduce gun crime in America by networking both new and existing local programs that target gun crime and then providing them with the resources and tools they need to succeed. Implementation at the local level -- in this case, in King County-- has fostered close partnerships between federal, state and local prosecutors and law enforcement.
The case was investigated by the Seattle Police Department, the King County Sheriff’s Office and the FBI. The case was prosecuted by Special Assistant United States Attorney Stephen Hobbs and Assistant United States Attorney Ehren Reynolds. Mr. Hobbs is a Senior King County Deputy Prosecutor specially designated to prosecute gun cases in federal court.
White Center Bank Robber Sentenced to 8+ Years in PrisonRead the Press Release
A 31- year-old man who robbed a Chase Bank branch in the White Center neighborhood of southwest Seattle at gunpoint last year was sentenced today in U.S. District Court in Seattle to 102 months (8.5 years) in prison and three years of supervised release, announced U.S. Attorney Jenny A. Durkan. BRYAN ALLEN HILL, was convicted of armed bank robbery and brandishing a firearm during a crime of violence following a jury trial in January 2013. HILL was arrested a few blocks from the bank on July 25, 2012, with the gun and cash that had been taken in the robbery. At sentencing U.S. District Judge Ricardo S. Martinez said this is “a very, very serious offense… basically terrorizing the individuals in the bank.”
According to records filed in the case and testimony at trial, HILL entered the bank with a blue bandana pulled up over his face. He pointed a handgun at the teller’s head and ordered the teller to put all the cash in the bag. While stuffing money into his bag, the bandana fell off of HILL’s face and the teller was able to see his face. Other workers in the bank were able to alert law enforcement and one wrote down a description of the robber. Within minutes of the robber leaving the bank, Seattle Police had a description and were searching the area around the bank for the suspect.
A Seattle Police officer spotted someone who was similar in appearance to the suspected robber walking quickly from the area. The officer ordered the man to stop and kneel on the ground. Witnesses from the bank were brought to the scene and identified the man, HILL, as the bank robber. When police searched the bag he was carrying they found the gun, cash, and some of the clothing HILL had removed following the bank robbery.
HILL was prosecuted as part of the Project Safe Neighborhoods program. Unveiled in May 2001, Project Safe Neighborhoods (PSN) is a comprehensive and strategic approach to gun law enforcement. PSN is a nationwide commitment to reduce gun crime in America by networking both new and existing local programs that target gun crime and then providing them with the resources and tools they need to succeed. Implementation at the local level -- in this case, in King County-- has fostered close partnerships between federal, state and local prosecutors and law enforcement.
The case was investigated by the Seattle Police Department, the King County Sheriff’s Office and the FBI. The case was prosecuted by Special Assistant United States Attorney Stephen Hobbs and Assistant United States Attorney Ehren Reynolds. Mr. Hobbs is a Senior King County Deputy Prosecutor specially designated to prosecute gun cases in federal court.
West Haven Man Sentenced to Seven Years in Federal Prison for Distributing HeroinRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that DARRELL DAVIS, also known as “Baller,” 34, of West Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 84 months of imprisonment, followed by three years of supervised release, for distributing heroin.
DAVIS is one of 108 individuals charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants and seizures of narcotics and firearms. The investigation revealed that DAVIS conspired with others to purchase and redistribute heroin.
On January 17, 2013, DAVIS pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin.
DAVIS’s criminal history includes multiple felony convictions, including four drug trafficking convictions. He is currently in state custody serving an 18-month sentence for possession of narcotics.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant United States Attorneys S. Dave Vatti and Marc Silverman.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Kristopher Brooks, 39, of Elkhart, Indiana, pled guilty before District Judge Robert Miller, Jr. to the felony offense of failure to register as a sex offender.Sentencing has been set for 7/24/13.This charge was filed as a result of an investigation by the United States Marshal’s Service.This case is being prosecuted by Assistant United States Attorney John Maciejczyk.
Clinton Vortice, 32, of South Bend, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of possession of a firearm by a convicted felon.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 7/17/13.This charge was filed as a result of an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
Kori Ann Donovan, 44, of Plymouth, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offenses of health care fraud and fraud with identification documents.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 7/15/13.These charges were filed as a result of an investigation by the Federal Bureau of Investigation and the Indiana Medicaid Fraud Control Unit.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
Kenneth McCreary, Jr., 26, of South Bend, Indiana, pled guilty before Magistrate Judge Roger Cosbey to the felony offense of theft of stolen mail matter.Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation.This charge was filed as a result of an investigation by the United States Postal Service-Office of the Inspector General.This case is being prosecuted by Assistant United States Attorney Lesley Miller Lowery.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Chhit Taing, 45, of Fort Wayne, Indiana, was sentenced by District Judge Robert Miller, Jr. to 37 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of distribution of marijuana. According to documents filed by the government in this case, Taing was involved with nine sales of marijuana and was arrested while selling marijuana and trying to buy cocaine.Mr. Taing was found in possession of a large amount of cash at the time of his arrest.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Tommy Webster, 33, of South Bend, Indiana, was sentenced by District Judge Robert Miller, Jr. to 168 months imprisonment and 3 years of supervised release after being found guilty at trial of the felony offenses of possession with the intent to distribute cocaine, possession of a firearm in furtherance of a drug trafficking crime, manufacture of marijuana, possession with the intent to distribute cocaine base and possession of a firearm by a convicted felon.According to documents filed by the government in this case, an investigation by law enforcement found cocaine (powder and cocaine base) individually wrapped for distribution; a substance used for cutting cocaine; loose marijuana; six dozen growing marijuana plants; and drug paraphernalia, such as scales and baggies. Webster also had electronic security consisting of police scanners and a video system with monitors and carefully placed cameras; a loaded shotgun, a sawed-off shotgun, and a bullet proof vest. Webster has a prior felony conviction for armed drug dealing and several misdemeanor convictions.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Lynn Little, 42, of West Lafayette, Indiana, a defendant in the case US v Patlan et al., was sentenced by District Judge Robert Miller, Jr. to time served and 4 years of supervised release, to include 8 months of home detention and 200 hours of community service, after pleading guilty to the felony offense of distribution of marijuana.According to documents filed by the government in this case, Little admitted that she was involved with supplying Jose Patlan with marijuana that she believed he was distributing in the Logansport, Indiana, area.When law enforcement searched her home in West Lafayette, Indiana, officers found $12,000 in United States Currency from drug transactions. This case was the result of an investigation by the Drug Enforcement Administration, the Indiana State Police, the Cass County Sheriff’s Department and the Illinois State Police.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Hayle Doty, 24, of Milford, Indiana, was sentenced by District Judge Jon DeGuilio to 30 months imprisonment and 4 years of supervised release after pleading guilty to the felony offense of conspiracy to distribute marijuana.According to documents filed by the government in this case, Doty participated in a sophisticated drug conspiracy involving marijuana in a range of 100-400 kilograms that had several players, spanned several years and generated large cash profits.During the search of the residence firearms, cash and drugs were located.This case was the result of an investigation by the Drug Enforcement Administration. The Laporte County Prosecutor’s Offices, the Laporte County Drug Unit and the ICE Unit for Elkhart County also participated.This case was prosecuted by Assistant United States Attorney William Grimmer.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
INDICTMENT:
Demetrius Moore, 42, of Merrillville, Indiana, was charged in an Indictment returned on 2/7/13 with theft of government property (designated unemployment benefits).These charges were filed as the result of an investigation by the Department of Labor-Office of the Inspector General.This case has been assigned to and will be prosecuted by Assistant United States Attorney Randall Stewart.
PLEAS:
Luis Yanez, 41, of Lorain, Ohio, pled guilty before Magistrate Judge Paul Cherry to the felony offense of conspiracy to possess with the intent to distribute 500 grams or more of cocaine.Magistrate Cherry is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Administration.This case is being prosecuted by Assistant United States Attorney Joshua Kolar.
Amin Guillermo Velazquez, 32, of Rensselaer, Indiana, pled guilty before District Judge Joseph Van Bokkelen to the felony offense of conspiracy to possess with the intent to distribute and distribution of cocaine.Sentencing has been set for 6/27/13.This charge was filed as a result of an investigation by the Drug Enforcement Administration and the Illinois State Police.This case is being prosecuted by Assistant United States Attorney Joshua Kolar.
Tracey Tigner, 42, of Gary, Indiana, pled guilty before District Judge Joseph Van Bokkelen to the felony offense of embezzlement and theft from a Labor Union.This charge was filed as a result of an investigation by United States Department of Labor-Office of the Inspector General and the Office of Labor Management Standards.This case is being prosecuted by Assistant United States Attorney Randall Stewart.
Marilyn Krusas, 69, of Gary, Indiana, pled guilty before District Judge Joseph Van Bokkelen to the felony offense of tax evasion.Sentencing has been set for 7/11/13.This charge was filed as a result of an investigation by the Internal Revenue Service-Criminal Investigation Division.This case is being prosecuted by Assistant United States Attorney Gary Bell.
Octavio Alejandre-Mata, 44, of Hobart, Indiana, pled guilty before Senior District Judge Rudy Lozano to the felony offense of distribution of cocaine.This charge was filed as a result of an investigation by the Federal Bureau of Investigation GRIT Task Force.This case is being prosecuted by Assistant United States Attorney Jacqueline Jacobs.
Phyllis Lark, 46, of Hammond, Indiana, a defendant in the case US v Nwaka et al., pled guilty before District Judge Joseph Van Bokkelen to the felony offense of submitting fraudulent claims to Indiana Medicaid.This charge was filed as a result of an investigation by the Federal Bureau of Investigation and the Indiana Medicaid Fraud Control Unit.This case is being prosecuted by Assistant United States Attorney Diane Berkowitz.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Maxie Rallings, Jr., 42, Gary, Indiana, was sentenced by District Judge Robert Miller, Jr. to 60 months imprisonment and 4 years of supervised release after pleading guilty to the felony offense of distribution of crack cocaine.According to documents filed by the government in this case, Rallings delivered over 28 grams of crack cocaine to an individual who was working for law enforcement.This case was the result of an investigation by the Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Lynn Little, 42, of West Lafayette, Indiana, a defendant in the case US v Patlan et al., was sentenced by District Judge Robert Miller, Jr. to time served and 4 years of supervised release, to include 8 months of home detention and 200 hours of community service, after pleading guilty to the felony offense of distribution of marijuana.According to documents filed by the government in this case, Little admitted that she was involved with supplying Jose Patlan with marijuana that she believed he was distributing in the Logansport, Indiana, area.When law enforcement searched her home in West Lafayette, Indiana, officers found $12,000 in United States Currency from drug transactions. This case was the result of an investigation by the Drug Enforcement Administration, the Indiana State Police, the Cass county Sheriff’s Department and the Illinois State Police.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Scot Silvers, 48, of Angola, Indiana, pled guilty before Magistrate Judge Roger Cosbey to the felony offenses of use of counterfeit access devices, fraud with identification documents and making counterfeit obligations.Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the United States Secret Service and the Angola Police Department.This case is being prosecuted by Assistant United States Attorney Tina Nommay.
Alex White, 47, of Fort Wayne, Indiana, pled guilty before Magistrate Judge Roger Cosbey to the felony offense of the armed robbery of Wells Fargo Bank.Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation, the Fort Wayne Police Department and the Northeast Indiana Bank Robbery Task Force.This case is being prosecuted by Assistant United States Attorney Lovita Morris King.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Chhit Taing, 45, of Fort Wayne, Indiana, was sentenced by District Judge Robert Miller, Jr. to 37 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of distribution of marijuana. According to documents filed by the government in this case, Taing was involved with nine sales of marijuana and was arrested while selling marijuana and trying to buy cocaine.Mr. Taing was found in possession of a large amount of cash at the time of his arrest.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Two Men Found Guilty in International Investment Fraud and Money Laundering SchemeRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces that a federal jury today found United Kingdom citizens Paul R. Gunter (64, Odessa, Florida; originally of London), and Simon Andrew Odoni (56, Hertfordshire, UK) guilty of three counts of conspiracy to commit mail fraud, wire fraud, and money laundering, as well as nineteen counts of mail and wire fraud, and fourteen counts of money laundering. Gunter and Odoni each face a maximum penalty of 20 years in federal prison on each of the conspiracy charges and each of the separate mail and wire fraud charges, and up to 10 years on each of the money laundering charges. Both individuals will also be ordered to forfeit real property, bank accounts, an airplane, vessels, and vehicles purchased with proceeds of the fraud scheme. As part of the investigation, federal agents seized nearly $5 million U.S. currency. A sentencing date has not yet been set.
According to the evidence and testimony presented at trial, from at least as early as July 2004 through at least March 13, 2008, Gunter, Odoni and others engaged in a sophisticated investment fraud and money laundering scheme, in which worthless stock in hijacked dormant, publicly-traded companies in the United States was sold to victim-investors, primarily in the United Kingdom. The scheme was facilitated using boiler room telemarketers, mostly in Spain, who employed high pressure and misleading sales techniques. The victim-investors wired more than $127 million to Gunter's bank accounts in the Middle District of Florida. The conspirators bilked victim-investors out of another $10 million via a FOREX currency trading scheme, which also utilized the boiler rooms in Spain.
Gunter, Odoni, and their co-conspirators used the victim-investors' funds to perpetuate the fraud scheme and for their own personal enrichment. Victim-investors' funds were used to buy, among other things, an airplane, two vessels, vehicles, including a Ferrari, and real property in the Caribbean islands, England, and Florida.
In March 2011, co-defendant Richard Sinclair Pope pleaded guilty to conspiracy to commit wire and mail fraud. Pope faces a maximum sentence of 20 years in prison.
In a related trial that took place in May 2012, Houston lawyers Roger Lee Shoss and Nicolette Loisel were convicted of one count of conspiracy to commit wire fraud in connection with their participation in the corporate identity theft aspect of the scheme. Shoss and Loisel stole the identities of dormant, publicly-traded companies, and used the corporate identities they had stolen to create fraudulent empty-shell companies, which had the appearance of being publicly-traded. The fraudulent empty-shell companies were sold to Gunter and his co-conspirators, who made them available to the boiler rooms in Spain and, through them, used the empty-shell companies to issue worthless shares of stock to the victim-investors. All four of the companies featured in the indictment – that is, Mobilestream, Inc., Regaltech, Inc., Nanoforce, Inc., and Rocky Mountain Gold Mining, Inc. – were created by Shoss and Loisel. According to the testimony at trial, Gunter and his co-conspirators paid Shoss a total of $800,000 for these empty-shell companies.
This case was investigated by U.S. Immigration and Customs Enforcement's Homeland Security Investigations, Tampa, Florida, as well as the U.S. Secret Service, Tampa, Florida and Newark, New Jersey Field Offices. "These individuals conspired to make a profit through a complex, international money laundering scheme," said Susan McCormick, special agent in charge of Homeland Security Investigations Tampa. "Our law enforcement partners across the globe helped us identify and prosecute these con-artists who preyed on the vulnerable. I urge investors to beware of similar scams – they know no borders."
"This case demonstrates the power that comes from law enforcement agencies pooling their assets and sharing critical information," said Special Agent in Charge John Joyce of the Tampa Field Office. "The U.S. Secret Service values the partnerships it has forged with other agencies in order to address criminal behavior, both domestically and internationally." The government received assistance from several other authorities, including the City of London Police, the UK's Serious Fraud Office and Norfolk Constabulary, the Spanish National Police, the U.S. Securities and Exchange Commission, the Ontario Securities Commission, and the British Columbia Securities Commission. According to Detective Inspector Kerrie Gower of the City of London Police, "Odoni and Gunter were key operators in a criminal gang that ruthlessly targeted the elderly and vulnerable, defrauding them and then spending tens of millions of pounds that had been put aside to support people’s retirements. We now look forward to the sentencing of all those who played a part in this devastating crime and hope it will bring some comfort to their victims. This tragic story should act as warning to anyone who is considering putting their money into investment schemes offering massive returns."
The case is being prosecuted by Assistant United States Attorneys Rachelle DesVaux Bedke and Kelley Howard-Allen.
Two Individuals Enter Pleas to Methamphetamine ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
CLARKSBURG, WEST VIRGINIA — Two Upshur County residents entered pleas of guilty on April 16, 2013, in United States District Court in Clarksburg before Magistrate Judge John S. Kaull.
United States Attorney William J. Ihlenfeld, II, announced that:
KRISTIN ELAINE DYE, age 20, of Buckhannon, West Virginia; and, BRANDON EDWARD ANDERSON, age 22, of Rock Cave, West Virginia, entered pleas of guilty to“Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine” on September 9, 2012 and June 15, 2012, respectively. DYE and ANDERSON, who are free on bond pending sentencing, face up to 20 years imprisonment and a $250,000.
This case was prosecuted by Assistant United States Attorney Stephen D. Warner and investigated by the West Virginia State Police.
Two Individuals Enter Pleas to Firearms ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
CLARKSBURG, WEST VIRGINIA - Two individuals entered pleas of guilty in United
States District Court in Clarksburg on April 17, 2013, before Magistrate Judge John S. Kaull.United States Attorney William J. Ihlenfeld, II, announced that:
CHRISTOPHER WAYNE WILLIAMS, age 39, of Mill Creek, West Virginia, entered a plea of guilty “Felon in Possession of a Firearm.” WILLIAMS possessed a firearm on March
15, 2013, despite having a prior felony conviction from the Circuit Court of Cabell County for Burglary. As part of his plea, WILLIAMS will abandon the firearm. WILLIAMS, who is in custody pending sentencing, faces up to 10 years imprisonment and a $250,000 fine.JOHN HARLOW, age 46, of Clarksburg, entered a plea of guilty to“Possession of a Firearm by a Convicted Felon.” HARLOW possessed a firearm on February 13, 2012, despite having three prior felony convictions from the United States District Court for the Northern District of West Virginia for distribution of cocaine base, distribution of heroin and interstate transportation in aid of racketeering. HARLOW, who is in custody pending sentencing, faces up to 10 years imprisonment and a $250,000 fine.
These cases were prosecuted by Criminal Chief Shawn A. Morgan and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Two Georgia Dieticians Charged with Medicaid FraudRead the Press Release
BRUNSWICK, GA: SCHELLA HOPE, 47, a licensed dietician whose business, Hope Nutritional Services, was located in Brunswick, Georgia, and ARLENE MURRELL, 65, a licensed dietician whose business, Quality Nutrition Services, was located in Newnan, Georgia, were charged with various health care fraud offenses in a forty-five count indictment returned by a federal grand jury sitting in Savannah, Georgia earlier this month.The indictment alleges that HOPE and MURRELL conspired to fraudulently bill the Georgia Medicaid program for nutrition services that were purported to have been provided to children enrolled in Head Start centers located across Georgia. The indictment also alleges that between January 2005 and September 2011, HOPE submitted bills to Medicaid for these services totaling almost $4 million.
HOPE made her first court appearance in this case on Wednesday at the federal courthouse in Tallahassee, Florida, while MURRELL’s initial court appearance occurred yesterday at the federal courthouse in Brunswick, Georgia. A trial date has not yet been scheduled.
United States Attorney Edward J. Tarver said, “As the Georgia Medicaid program is jointly funded by the United States government and the State of Georgia, it is fitting that the investigation and prosecution of this case has been a team effort by this office, federal law enforcement agencies, and the Georgia Medicaid Fraud Control Unit. The United States Attorney's Office and its partners are committed to protecting the financial well-being of government-funded health programs.”
Georgia Attorney General Sam Olens said, “Fraud of taxpayer monies will not be tolerated in any form. Head Start is a program intended to offer assistance to children from low income families. The allegations that these defendants used the Head Start program and children in need to assist in their scam is especially appalling.”
“This indictment sends a clear message to those who corruptly take advantage of the Medicaid system," said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General for the Atlanta region. “The taxpayers and vulnerable recipients pay the price of Medicaid fraud and those who commit these offenses will be held accountable.”
If convicted, HOPE and MURRELL both face a maximum penalty of ten years imprisonment for the conspiracy charge, while HOPE also faces ten years imprisonment for each of the nineteen counts of health care fraud, and two years imprisonment for each of the twenty-five counts of aggravated identity theft. Each of these charges also carries a fine of up to $250,000.
United States Attorney Edward J. Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
FBI Special Agent Tony Alig, HHS-OIG Special Agent David Graupner, and Georgia Medicaid Fraud Control Unit Auditor Denise Colson and Investigator Gretchen Culberson conducted the investigation which led to the indictment. Assistant United States Attorneys Brian Rafferty and David Stewart and Georgia Assistant Attorney General Robin Daitch are the prosecutors in this case. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.Truck Driver Indicted for Stealing Kindle Fire from WarehouseRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that, Eric Hanstein, age 29, of Arnold, Missouri, was indicted by a Grand Jury in the United States District Court for the Southern District of Illinois, East St. Louis Division. The single count indictment charges Hanstein with Theft from an Interstate Shipment for allegedly stealing a Kindle Fire from a warehouse in Mount Vernon, Illinois.
An indictment is a formal charge against a defendant. Under the law, that charge is merely an accusation and the defendant is presumed innocent unless proven guilty.
The indictment alleges that Hanstein was a truck driver for First Choice Courier and Distribution, Inc. His delivery routes included a stop at a warehouse in Mount Vernon, Illinois where he would load his trucks with packages for delivery. On or about December 5, 2012, according to the indictment, Hanstein kicked aside a package containing a Kindle Fire that was being shipped via FedEx. He later picked up the package and carried it away, ultimately selling the Kindle to an unwitting purchaser on Craigslist for $130.
Theft from an Interstate Shipment is punishable by up to 3 years’ imprisonment, a fine of $250,000 or both, up to one year of supervised release, and a $100 special assessment.
This case was investigated by the United States Postal Inspection Service and the Maryland Heights Police Department. The case is being prosecuted by Special Assistant United States Attorneys Theresa M. Dawson and Katherine L. Lewis.
Title Attorney, Two Mortgage Brokers and Their Coconspirators Sentenced in Mortgage Fraud SchemeRead the Press Release
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and J.D. Patterson, Director, Miami-Dade Police Department (MDPD), announced the sentencing of Rafael Ubieta, 50, of Miami, Florida, and Angel Barroso, 46, of Miami, Florida, following their January 2013 convictions of conspiracy to commit wire fraud and wire fraud, as well as the sentencing of Joel Zaldivar, 33, of Studio City, California, and Kyle Baker, 33, of Beverly, Massachusetts, following their January 2013 guilty pleas to conspiracy to commit wire fraud. Ubieta, a Title Attorney, was sentenced to 240 months (20 years) of imprisonment. Barroso was sentenced to 210 months of imprisonment. Zaldivar and Baker, who were both Mortgage Brokers, were each sentenced to 48 months of imprisonment. Two other co-defendants, Martha Otero and Fernando Tolon, were previously sentenced to 78 months of imprisonment and 37 months of imprisonment, respectively, following their December 2012 guilty pleas to conspiracy to commit wire fraud. All sentences were imposed by United States District Judge K. Michael Moore.
According to the evidence presented at trial, Ubieta, a member of the Florida Bar, served as the Title Attorney for multiple fraudulent real estate transactions involving the use of straw buyers on whose behalf loan applications and supporting documents containing false information were submitted to various mortgage lenders across the United States by Zaldivar and Baker, who, at the time, were Mortgage Brokers and the Presidents of First Class Mortgage and Lending Corp. Straw buyers were recruited and paid by Barroso, Otero and Tolon. After the lenders approved the loans based on the false information provided, defendant Ubieta, then President of Bayside Title Services, Inc., prepared false HUD-1 Settlement Statements that contained false information. For example, the forms falsely represented to the lenders that the straw buyers were bringing their own money to closing. None of the straw buyers brought their own money to closing. Instead, on multiple occasions Ubieta released lenders’ proceeds to other members of the conspiracy, including Barroso and Otero, prior to receiving the buyers’ required cash-to-close payments. Members of the conspiracy, including Barroso and Otero, then used those proceeds to make the cash-to-close payments on behalf of the straw buyers. Ubieta also signed multiple Title Commitments falsely stating who the owner of record was on various properties. The false Title Commitments allowed Ubieta to conduct real estate closings in which an initial straw buyer resold properties to a second straw buyer before the initial straw buyer appeared as the owner of the property in the public records.
Mr. Ferrer commended the investigative efforts of the MDPD.
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.
Three Men Sentenced for Possession of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that 3 men from South Dakota convicted of Possession of a Controlled Substance were sentenced on April 16, 2013 by U.S. Magistrate Judge Mark A. Moreno.
Dennis Red Elk, age 32, of Rapid City, was sentenced to 5 months of imprisonment, $1,000 fine and $25 special assessment to the Victim Assistance Fund. Maurice Johnson, age 33, of Rapid City, was sentenced to time served, $1,000 fine and $25 special assessment to the Victim Assistance Fund, and Daniel Gangone, age 35, of Mission, was sentenced to 12 months of probation, a $1,000 fine, and $25 special assessment to the Victim Assistance Fund.
Red Elk, Johnson, and Gangone were indicted by a federal grand jury on August 22, 2012 and pled guilty to a Superseding Information on January 17, 2013. The charges stem from incidents on March 27, 2010 wherein Red Elk and Johnson came into contact with law enforcement officers, who discovered marijuana in the defendants’ possession. Gangone was implicated during the investigation as having possessed marijuana.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Red Elk was immediately turned over to the custody of the U.S. Marshal Service. Johnson is to be turned over to the state authorities for a parole violation.
Tax Preparer Sentenced to 30 Months in Federal Prison for Preparing Fraudulent ReturnsRead the Press Release
Defendant Operated “Instant Tax Services” in Dallas
DALLAS — George Chukwuka Chima was sentenced this morning by Chief U.S. District Judge Sidney A. Fitzwater to 30 months in federal prison and ordered to pay $776,341 in restitution, following his guilty plea in December 2012 to one count of aiding and assisting in the preparation of fraudulent federal income tax returns. Judge Fitzwater ordered that Chima, who has been on bond, surrender to the Bureau of Prisons on June 4, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, Chima, a resident of Irving, Texas, operated a tax service business under the name “Instant Tax Services,” in Dallas. When Instant Tax Services prepared federal tax returns, Chima placed, or caused others to place, false and fraudulent claims for the First Time Home Buyer Credit (FTHBC) and Fuel Tax Credit (FTC) on numerous returns in order to fraudulently obtain refunds from the Internal Revenue Service (IRS). Chima admitted that he caused tax returns to include these false FTHBC and FTC credits that were completely fictitious and fraudulent, resulting in refund and credit overpayments by the IRS and unearned and fraudulent tax preparation fees paid to Chima.
Chima admitted, according to the factual resume, that from January 1, 2009, through April 15, 2010, he electronically filed, and caused others to electronically file, a total of approximately 795 individual income tax returns with the IRS. Of that number, approximately 505 contained fraudulent and false information, which caused a total loss to the IRS of approximately $776,341.
The case was investigated by IRS Criminal Investigation. Assistant U.S. Attorney David Jarvis was in charge of the prosecution.
Suspended Border Patrol Agents Found Guilty at TrialRead the Press Release
TUCSON, Ariz: On April 19, 2013, a federal jury in Tucson found suspended Border Patrol Agent Dario Castillo, age 25, guilty of four felony counts of deprivation of rights under color of law, in violation of 18 United States Code, Section 242, and his co-defendant, suspended Agent Ramon Zuniga, age 31, guilty of four misdemeanor violations of the same criminal statute. The case was tried before U.S. District Judge Jennifer G. Zipps from April 8 through April 19, 2013. Sentencing is set before Judge Zipps on July 1, 2013.
“This verdict sends a clear message that abuse of authority by federal law enforcement officers will not be tolerated in our society,” said United States Attorney for Arizona John S. Leonardo. “The United States Attorney’s Office is determined to continue to hold accountable any federal law enforcement officer in Arizona who commits such crimes in violation of their oath of office. Violations of the law by those sworn to enforce it undermine public confidence in the entire criminal justice system. The defendants’ abuse of authority in this case was in stark contrast to the vast majority of dedicated, hard-working federal law enforcement officers who do their best every day, under difficult circumstances, to enforce the law and protect the community professionally and within the constraints of the law.”
Evidence at trial showed that on Nov. 12, 2008, Zuniga and Castillo participated in a Border Patrol operation to track and contact border-crossers in Southern Arizona. At approximately 10:30pm, agents located a group of persons carrying backpacks containing marijuana. Most of these individuals fled, but four of the group were apprehended by the defendants and two other agents. During a search of the four, Zuniga discovered a small baggie of personal-use marijuana on one of them. He then shoved the marijuana into several of the victims’ mouths and yelled “comatela” (eat it). The defendants ordered the victims to take off their shoes, socks, jackets, and extra shirts, which the victims had layered to protect against the cold, leaving them barefoot and wearing a single layer of clothing. Defendant Castillo asked another agent for a cigarette lighter and then lit a fire which contained the victims’ shoes and clothing. Zuniga and Castillo then ordered the victims to run away, without shoes or socks, and wearing only a single layer of clothing.
A felony conviction for deprivation of rights under color of law carries a maximum penalty of 10 years, a $250,000 fine or both; a misdemeanor conviction under the statute carries a penalty of 1 year, a $100,000 or both.
The investigation in this case was conducted by the Department of Homeland Security’s Office of Inspector General. The prosecution was handled by Karen Rolley and Eric Markovich, Assistant United States Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-13-2727-TUC-JGZ
RELEASE NUMBER: 2013-031_Castillo&ZunigaSt. Francis Man Pleads Guilty to Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that Patrick Black Spotted Horse, age 23, of St. Francis, South Dakota appeared before U.S. District Judge Roberto A. Lange on April 16, 2013 and pled guilty to Failure to Register as a Sex Offender. The maximum penalty upon conviction is 10 years in custody, a $250,000 fine, or both; life of supervised release; and a $100 special assessment.
The Defendant was convicted of Sexual Abuse of a Minor on December 7, 2009. The Court sentenced Black Spotted Horse to 40 months’ imprisonment, 5 years of supervised release and also ordered that he must register as a sex offender. On October 12, 2012, Black Spotted Horse began his term of supervised release but eventually absconded from a treatment facility and did not properly register as a sex offender. On December 22, 2012 Black Spotted Horse was arrested on the Rosebud Sioux Indian Reservation.
The investigation was conducted by the U.S. Marshal Service. The case is being prosecuted by Assistant U.S. Attorney Timothy M. Maher.
A presentence investigation was ordered and a sentencing date was set for May 29, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Shakopee Man Charged with Fraudulently Using Food StampsRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a 47-year-old Shakopee man was charged via an Information with fraudulently using other people’s food stamps. On April 18, 2013, Chin Son Kim was specifically charged with one count of food stamp fraud.
The charging document provided that between November 2010 and July 2012, Kim obtained Supplemental Nutrition and Assistance Program (“SNAP”) cards, commonly known as food stamps, from the recipients of those benefits. To that end, Kim waited near a charity facility in St. Paul, as well as at other locations, approaching people from whom he might acquire the SNAP cards.
After garnering a card, Kim would go to cooperating local markets, where he would use the card in an unauthorized manner. Typically, Kim would present the card to the grocer, who would swipe it through a food-stamp scanner, routinely noting a transaction of approximately $200. Kim would then receive cash, groceries, or store credit in that amount. Afterwards, he would return the card to its rightful owner, providing that person with cash in the amount of approximately half the transaction total. The loss to the SNAP program because of Kim’s action is estimated to be $29,816.Each individual who receives SNAP benefits is issued an electronic benefit transfer (“EBT”) card, which contains a monthly allocated benefit amount that can be used at authorized retailers. The United States Department of Agriculture (“USDA”) then reimburses those retailers for the benefit amounts redeemed. Only eligible food items may be acquired with food stamps, and some items, such as alcoholic beverages, tobacco products, and cell phone minutes. Moreover, food stamps may not be redeemed for cash.
If convicted, Kim faces a potential maximum penalty of five years in federal prison. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the USDA-Office of Inspector General, the Ramsey County Sheriff’s Office, and the St. Paul Police Department. It is being prosecuted by Assistant U.S. Attorney David P. Steinkamp.
A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.Prestonsburg Doctor Pays U.S. Government $50,000 to Settle Civil AllegationsRead the Press Release
CITY, KY - Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Robert L. Corso, Special Agent in Charge, Drug Enforcement Administration (DEA) jointly announced today that a physician from Prestonsburg, Ky., paid the U.S. Government $50,000 to settle civil claims that she failed to account for nearly 5,000 prescription pills at her office.
According to the settlement agreement, the U.S. Government contends that, from June 2009 until May 2012, Dr. Laura Hazeltine failed to maintain accurate inventory records of controlled substances. More specifically, the Government contends that an audit conducted by the DEA revealed Hazeltine, who practices family medicine, couldn’t account for 4,967 pills and at least 10 purchasing records for controlled substances.
In addition to the monetary settlement amount, Dr. Hazeltine surrendered her DEA registration.
Doctors are only allowed to write prescriptions for controlled substances if they are registered with the DEA. DEA registrants are required by federal law to maintain complete and accurate inventory and dispensing records of all controlled substances.
The investigation was conducted by the DEA. Assistant U.S. Attorney Valorie D. Smith represented the U.S. Attorney’s Office in this case.
Pittsburgh Man Pleads Guilty to Mail Fraud, Witness Tampering & False StatementsRead the Press Release
PITTSBURGH, Pa. - A resident of North Huntingdon, Pa., pleaded guilty in federal court to one count of mail fraud, one count of witness tampering and one count of false statements to the government, United States Attorney David J. Hickton announced today.
Danny A. Patel, 45, pleaded guilty to three counts before Chief United States District Judge Gary L. Lancaster.
In connection with the guilty plea, the court was advised that Patel managed a BP gas station in McKeesport, Pa. Patel submitted false insurance claims to Harleysville Insurance Company arising from a December 25, 2011 accident at the BP. Patel also admitted that he lied to FBI agents and obstructed justice by asking witnesses to lie to FBI agents.
Judge Lancaster scheduled sentencing for Friday, July 26, 2013 at 10:00 a.m. The law provides for a total sentence of 30 years in prison, a fine of $750,000.00, 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.
Pending sentencing, the court continued the bond.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Patel.
Pilot and Passenger Arrested and Charged with Possession with Intent to Distribute MarijuanaRead the Press Release
CBP Air Interdiction Met Plane When it Landed in Lubbock
LUBBOCK, Texas — Two men, who flew into Lubbock and arrived at Lubbock Aero on Wednesday evening, April 17, 2013, Michael Gallanter, 48, and Ethan Oliver Wynne-Wade, 31, have been arrested and charged in a federal criminal complaint with possession with intent to distribute marijuana. Both men, residents of San Francisco, California, made their initial appearance in federal court this afternoon, before U.S. Magistrate Judge E. Scott Frost, who ordered them detained pending hearings set for next Wednesday, April 24, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the complaint filed, law enforcement received intelligence that Gallanter filed a flight plan from Northern California to Atlanta, Georgia. Gallanter traveled as the pilot along with passenger Wynne-Wade on a Piper PA28-181 aircraft; the aircraft appeared to have been rented by Gallanter. The aircraft departed California on April 17, flew to the Page, Arizona, area to refuel and arrived at the Lubbock Aero airport at approximately 10:00 p.m. to again refuel.
U.S. Customs and Border Protection (CBP) Air Interdiction agents met Gallanter as he deplaned and per their request, Gallanter provided them with the appropriate flight paperwork. The plane was then searched by special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and CBP Air Interdiction, as well as officers with the Lubbock Police Department (LPD) and the LPD’s canine unit. Several duffel bags that contained approximately 98 bundles of marijuana, four bundles of hash and two bundles of mushrooms, containing Psilocin or Psilocybin, were located in a compartment near the rear of the aircraft.
A federal criminal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. The penalty for the charged offense is up to 20 years in federal prison, a fine not to exceed $1,000,000 and a term of supervised release of at least three years up to life.
The investigation is being conducted by ICE HSI, CBP Air Interdiction, the Drug Enforcement Administration and the Lubbock Police Department. Assistant U.S. Attorney Jeffrey R. Haag is in charge of the prosecution.
Philadelphia La Cosa Nostra Capo <br /> Pleads Guilty to Racketeering ConspiracyRead the Press Release
Anthony Staino, 55, of Swedesboro, N.J., pleaded guilty yesterday to participating in a racketeering conspiracy as a capo in the Philadelphia La Cosa Nostra (LCN) Family and committing loan sharking and illegal gambling.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania and Edward J. Hanko, Special Agent in Charge of the FBI’s Philadelphia Division, made the announcement after the plea was accepted by U.S. District Judge Eduardo C. Robreno of the Eastern District of Pennsylvania.
Staino pleaded guilty to conspiring to conduct and participate in the affairs of the Philadelphia LCN Family through a pattern of racketeering activity. He faces a maximum penalty of 70 years in prison when he is sentenced on Jul. 17, 2013.
Through court documents and statements yesterday in court, Staino admitted that, as a made member and capo of the Philadelphia LCN Family, he gave a usurious loan to an undercover FBI agent and used threats of violence to collect payments on the loan. Staino also admitted that he ran an illegal electronic gambling device business for the mob, providing video poker machines and other gambling devices for bars, restaurants, convenience stores, coffee shops and other locations in Philadelphia and its suburbs, and then collected the illegal gambling proceeds.
The case is being investigated by the FBI, the Internal Revenue Service-Criminal Investigation, the Pennsylvania State Police, the New Jersey State Police, the Philadelphia Police Department, the U.S. Department of Labor’s Office of Inspector General Office of Labor Racketeering and Fraud Investigations and the U.S. Department of Labor’s Employee Benefits Security Administration. Additional assistance was provided by the New Jersey Department of Corrections.
The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Frank A. Labor III and Suzanne B. Ercole of the Eastern District of Pennsylvania. Valuable prosecutorial assistance was provided by the Pennsylvania Office of the Attorney General.
Parking Lot Manager Pleads Guilty to Conspiring to Steal Approximately $ 1.4 Million in Parking Fees from Smithsonian MuseumRead the Press Release
ALEXANDRIA, Va. – Abeselom Hailemariam, 33, of Alexandria, Va., pleaded guilty today for his participation in a conspiracy to steal approximately $1.4 million of visitor parking fees when he was employed by Parking Management, Inc., (PMI), the company contracted to manage parking services at the Smithsonian Institution’s Steven F. Udvar-Hazy Center in Chantilly, Va.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Scott S. Dahl, Inspector General for the Smithsonian Institution; and Valerie Parlave, Assistant Director in Charge of the FBI Washington Field Office, made the announcement after the plea was accepted by United States District Judge T.S. Ellis, III.
The plea follows Hailemariam’s March 5, 2013, arrest at Dulles International Airport by agents of the Smithsonian Office of Inspector General and Federal Bureau of Investigation.
Hailemariam faces a maximum penalty of five years in prison when he is sentenced on July 19, 2013.
Hailemariam was a full-time location manager for PMI, which managed the 2,000-vehicle parking lot at the Udvar-Hazy Center. Between March 2009 and July 2012, Hailemariam supervised the PMI booth attendants at the location, accounted for revenues from visitor vehicles that entered the parking lot, and submitted operations reports to PMI and the Smithsonian. Over the course of three years, Hailemariam and several booth attendants at the site conspired to steal cash entrance fees paid by tens of thousands of museum visitors. With Hailemariam’s knowledge and approval, the booth attendants withheld parking ticket stubs from paying customers and unplugged electronic vehicle counters in the entrance booths. At the end of each shift, these attendants would submit false shift summary report to Hailemariam that under-reported the number of vehicles which had entered the parking lot. Hailemariam compiled the fraudulent data and submitted falsified reports to PMI, which were provided to the Smithsonian. Some of the booth attendants paid Hailemariam a share of the stolen revenues at the end of the day by bundling unreported cash with the shift summary reports. Hailemariam also gave instructions to conspiring booth attendants to stop stealing at certain times when the co-conspirators believed the risk of detection of the conspiracy was high. The total loss due to the conspiracy is at least $1,383,195. Based on the $15 entrance fee, it is estimated that Hailemariam participated in a conspiracy that stole from at least 92,213 visitor vehicles over the course of the crime.Prior to today’s guilty plea, former PMI employees Meseret Terefe, 37, of Silver Spring, Md. and Freweyni Mebrahtu, 46, of Sterling, Va., were also convicted and have been sentenced to 20 months and 27 months in prison, respectively, for their roles in the thefts.
The investigation was initiated by the Smithsonian Office of the Inspector General and jointly investigated with the Federal Bureau of Investigation. Assistant United States Attorney Jasmine Yoon and Special Assistant United States Attorney James McDonald are prosecuting the case on behalf of the United States.A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Omaha, Nebraska Resident Sentenced to 48 Months for Conspiracy to Distribute MarijuanaRead the Press Release
COUNCIL BLUFFS, IA - On April 18, 2013, David L. Lopez, Jr., a 40 year old resident of Omaha, Nebraska, was sentenced by United States District Court Chief Judge James E. Gritzner to 48 months imprisonment for Conspiracy to Distribute Marijuana, announced United States Attorney Nicholas A. Klinefeldt. Chief Judge Gritzner also ordered Lopez to serve a three year term of supervised release following incarceration.
On February 8, 2013, Lopez, Jr. pled guilty to a charge of conspiring to distribute marijuana in Omaha, and Council Bluffs, Iowa. The charge was the result of an investigation conducted by several law enforcement agencies into the importation and distribution of marijuana by a known drug trafficking group. On December 5, 2011, Lopez was being observed by law enforcement as he traveled between Omaha, Nebraska and Council Bluffs, Iowa. Lopez was found to be transporting over 60 pounds of marijuana to a known drug house in Council Bluffs, Iowa, for the drug trafficking group.
The investigation was conducted by the Council Bluffs, Iowa, Police Department, the Southwest Iowa Narcotics Task Force, Omaha Police Department, Iowa Division of Narcotic Enforcement, the Pottawattamie County Attorney’s Office, and the Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Ohio Resident Enters Plea to Cocaine Conspiracy ChargeRead the Press Release
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(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
WHEELING, WEST VIRGINIA - A 35-year old Martins Ferry, Ohio, resident entered a plea of guilty on April 17, 2013, in United States District Court in Wheeling before Magistrate Judge James E. Seibert.
United States Attorney William J. Ihlenfeld, II, announced that SHERMAN L. GRIFFIN entered a plea of guilty to “Conspiracy to Distribute More than 500 Grams of Cocaine.” As part of his plea, GRIFFIN will forfeit $1,155 seized from him on December 19,
2012, which constitutes proceeds from the drug activity. GRIFFIN, who is free on bond, faces
5 to 40 years in prison and a $2,000,00 fine.The case was prosecuted by Assistant United States Attorney John C. Parr and were investigated by the Ohio Valley Drug & Violent Crime Task Force, consisting of officers from the Wheeling Police Department, the Ohio County Sheriff’s Department, the West Virginia State Police, and the Drug Enforcement Administration.
New Bedford Man Convicted of Passport FraudRead the Press Release
BOSTON – Following a jury trial, a New Bedford man was convicted of passport fraud.
John Doe a/k/a Jose L. Cosme was convicted of two counts of passport fraud. United States District Judge Douglas P. Woodlock scheduled sentencing for July 18, 2013.
On January 5, 2008, the defendant submitted an application for a U.S. passport at the U.S. Postal Office in New Bedford, representing himself as Jose L. Cosme, born in Bayamon, Puerto Rico. The defendant also claimed that his date of birth, social security number, and parents were those that in reality pertained to the true Jose L. Cosme. The defendant affixed his photograph to the application and provided other information required, including his mailing and residential address, which he reported as a New Bedford address. As proof of U.S. citizenship and identity, the defendant provided a birth certificate issued by the Commonwealth of Puerto Rico and a Massachusetts identification card, both in the name of Jose. L. Cosme. The defendant swore to the truth of the statements made in the application before a U.S. Postal Clerk. In due course, the U.S. State Department approved the application and issued a passport to the defendant in the name of Jose L. Cosme.
On May 12, 2012, after arriving at Logan International Airport on a flight from the Dominican Republic, the defendant traveling under the name of Jose L. Cosme attempted to use the issued passport and was referred by a U.S. Customs & Border Protection Officer to secondary admissibility inspection. During questioning, the defendant was unable to provide basic biographical information about his life in Puerto Rico and information regarding his family. A subsequent investigation by the U.S. State Department’s Bureau of Diplomatic Security revealed that the defendant assumed the identity of the true Jose L. Cosme.
The statutory maximum penalty is 10 years in prison, followed by three years of supervised release and a fine of up to $250,000 on each count.
United States Attorney Carmen M. Ortiz; William Wommack, Acting Special Agent in Charge of the U.S. Bureau of Diplomatic Security, Boston Field Office; and Kevin Weeks, Director of Field Operations of U.S. Customs & Border Protection, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Robert E. Richardson and Carlos A. Lopez of Ortiz’s Major Crimes Unit.
Morgantown Resident Convicted for Being A Convicted Felon in Possession of A FirearmRead the Press Release
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CLARKSBURG, WEST VIRGINIA — A 30 year-old Morgantown, West Virginia, resident was convicted on April 18, 2013, by a Clarksburg jury on one count. The trial lasted two days, concluding early Thursday evening. Judge Irene M. Keeley presided over the trial.
United States Attorney William J. Ihlenfeld, II, announced that: SAMAD MADIR HARVEY a/k/a “WES,” was convicted of Possession of a Firearm on September 16, 2012, in Monongalia County after having previously been convicted of a crime punishable by imprisonment for a term exceeding one year. HARVEY had prior felony convictions from the Superior Court of Monmouth, New Jersey for Possession of Controlled Dangerous Substance and Distribution of Controlled Dangerous Substance.
Trial evidence indicated that HARVEY illegally possessed a Kel-Tec Model PSAT, .380 caliber pistol.
HARVEY, who is in custody pending sentencing, faces up to 10 years imprisonment and a $250,000 fine.
The case was prosecuted by Assistant United States Attorney Zelda E. Wesley and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Morgantown Police Department.
Montgomery Man Sentenced in Bank Robbery CaseRead the Press Release
Montgomery, Alabama - Darrin Joseph Bell, 35, of Montgomery was sentenced yesterday to more than 7 years for the October 5, 2011 armed robbery of the Community Bank and Trust (CB&T) on the Eastchase Parkway in Montgomery, Alabama.
United States District Court Judge W. Keith Watkins sentenced Bell to 90 months in the Bureau of Prisons, 3 years of Supervised Release, a $200 court assessment fee, and $1524 in restitution to the bank.
When Bell pled guilty on January 4, 2013, he admitted that on October 5, 2011, he entered the business wearing a motorcycle helmet, jacket, gloves, dark blue jeans and black shoes and approached the teller with a blue book bag. Bell pulled a silver semi-automatic handgun out of the backpack, showed it to the teller with instructions to “fill it up”. The teller handed Bell over $1,500 dollars, and placed the money and the gun in the book bag. Bell then escaped on a motorcycle.
The Montgomery Police Department, in conjunction with the Federal Bureau of Investigation, developed Bell as a suspect, got a search warrant for his home and, upon searching the residence, located the motorcycle, helmet, gloves and jacket worn by the bank robber. Bell initially denied any involvement in the bank robbery and attempted to provide an alibi which law enforcement quickly refuted.
“Bank robbery is a crime that endangers innocent bank workers and innocent bank customers,” stated U.S. Attorney Beck. “Often these victims are incredibly traumatized. People deserve to feel safe in their workplace and at their bank. We will continue to vigorously prosecute those criminals who use guns to unfairly put the public in danger.”
The case was investigated by the Federal Bureau of Investigation and the Montgomery Police Department with assistance from the United States Marshal’s Service and the Montgomery County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Susan R. Redmond.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Mission Man Pleads Guilty to Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that Jody Brave, age 42, of Mission, South Dakota appeared before U.S. District Judge Roberto A. Lange on April 16, 2013 and pled guilty to Assaulting, Resisting, Opposing, and Impeding a Federal Officer. The maximum penalty upon conviction is 20 years in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 special assessment.
The conviction stems from an incident that took place on November 6, 2012, when Brave engaged in an altercation with a law enforcement officer during a home disturbance call. Brave grabbed a chain that had a padlock attached to the end, wrapped the end of the chain around his fist, and swung the padlock weighted end of the chain at the officer three times.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Timothy M. Maher.
A presentence investigation was ordered and a sentencing date was set for July 8, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Minnesota Man Pleads Guilty to Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that Larry T. Davis, age 38, of Marshall, Minnesota appeared before U.S. Magistrate John E. Simko on April 12, 2013 and pled guilty to Information that charged him with Failure to Pay Legal Child Support. The maximum penalty upon conviction is six months' imprisonment; a $5,000.00 fine; a $10.00 assessment fee; and child support restitution amount owing at the time of sentencing.
On or about January 1, 2010, a past due child support obligation was imposed on Davis by the Third Judicial Circuit Court, Brookings County, South Dakota for the benefit of his minor child. The obligation went unpaid for more than one year and was in an amount greater than $5,000. At that time, the defendant was residing in Minnesota while his minor child resided in South Dakota. From that date and continuing to the present, Davis has willfully and unlawfully failed to pay this past due child support obligation.
The investigation was conducted by the Department of Health and Human Services, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Thomas J. Wright.
A presentence investigation was ordered and a sentencing date was set for May 3, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Mills County, Iowa Resident Sentenced to 135 Months for Manufacturing MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA - On April 18, 2013, Adam Michael Blackman, a 40 year old resident of Mills County, Iowa, was sentenced by United States District Court Chief Judge James E. Gritzner to 135 months imprisonment for Manufacturing Methamphetamine, announced United States Attorney Nicholas A. Klinefeldt. Chief Judge Gritzner also ordered Blackman to serve an eight year term of supervised release following incarceration.
On January 9, 2013, Blackman pled guilty to a charge of manufacturing at least five grams of methamphetamine in Hamburg, Iowa. The charge was the result of an investigation conducted by several law enforcement agencies into the manufacturing and distribution of methamphetamine by Blackman. On May 1, 2012, the Fremont County Sheriff’s Office located an active methamphetamine manufacturing operation in an apartment building in Hamburg, Iowa. Blackman, along with several other people were found at the location of the manufacturing operation. Blackman admitted he was manufacturing methamphetamine when the Fremont County Sheriff’s investigators arrived.
The investigation was conducted by the Fremont County Sheriff’s Office, the Mills County, Iowa, Sheriff's Office, Iowa State Patrol, and the Iowa Division of Narcotics Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Methamphetamine Transport Coordinator Found Guilty at TrialRead the Press Release
PHOENIX – Indalecio Castro-Ponce, 40, of San Luis, Ariz., was found guilty of one count of conspiracy to possess with intent to distribute methamphetamine and two counts of possession with intent to distribute methamphetamine, by a federal jury in Phoenix. The case was tried before U.S. District Judge Susan R. Bolton between April 4 and April 12, 2013. The defendant is being held after trial. Sentencing is set before Judge Bolton on July 8, 2013.
“This verdict sends the message that those who attempt to profit by distributing large amounts of methamphetamine will be prosecuted and subjected to very long terms of imprisonment,” said U.S. Attorney John S. Leonardo.
The evidence at trial showed that Castro-Ponce conspired with others, including his wife and teenaged son, to distribute methamphetamine to various locations in the Southwestern United States, including Salt Lake City, Utah; Las Vegas, Nev.; Fresno, Calif.; Sunland, Calif.; and Moreno Valley, Calif. Castro-Ponce made more than 20 drug trafficking-related trips between February and July 2012, frequently taking his children and wife with him in order to attempt to disguise his activities. Following visits by Castro-Ponce, law enforcement seized more than three pounds of 96% pure “ice” methamphetamine from a location in Fresno, and more than seven pounds of methamphetamine from a location in Moreno Valley. Law enforcement agents also seized more than $200,000 cash from the same locations.
Convictions for conspiracy to possess methamphetamine with intent to distribute and possession of methamphetamine with intent to distribute each carry a maximum penalty of life imprisonment, a $10,000,000 fine, or both.
The investigation in this case was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations in Yuma, Ariz., with assistance from HSI-Fresno, HSI-Riverside County, HSI-Salt Lake City, HSI-Las Vegas, and HSI-Phoenix, the Drug Enforcement Administration, the Federal Bureau of Investigation, the LA-IMPACT Task Force, the INCA Task Force, and the Fresno County Sheriff’s Office. The prosecution was handled by Krissa Lanham and William Bryan, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-12-1363
RELEASE NUMBER: 2013-029_Castro-Ponce# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/azMemphis Tax Preparer Sentenced for Conspiracy to File False Tax ReturnsRead the Press Release
Memphis, TN – Terry Roberts, 41, of Memphis, TN, was sentenced April 17, 2013, to 27 months in federal prison, announced Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee.
# # # #
On January 15, 2013, Roberts pled guilty to conspiring to file false tax returns. According to information presented in the indictment, Roberts was an employee at the Memphis tax preparation company, Money in Your Hands Tax Service. As an employee at Money in Your Hands Tax Service, Roberts conspired with others to assist in the preparation of false tax returns for clients.
The false returns claimed false tax credits, such as First Time Homebuyers Credit, Earned Income Credit and Education Credit, and reported false income figures, resulting in tax refunds being generated for which the individuals were not entitled. Roberts and the other conspirators would then split the refunds generated by the false tax returns. Roberts and his co-conspirators received approximately $2,000.00 out of each tax refund paid.
In addition to the prison sentence, Chief District Judge Jon P. McCalla ordered Roberts to pay restitution of $100,000 to the Internal Revenue Service (IRS) and to serve three years of supervised release. This investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorney Lawrence J. Laurenzi represented the government.Melvin Jeovany Vasquez Indicted for Illegal ReentryRead the Press Release
MELVIN JEOVANY VASQUEZ, age 30, a citizen of Honduras, was charged in a one-count indictment by a Federal Grand Jury today with illegal reentry by an alien previously removed, announced U.S. Attorney Dana J. Boente.
According to the indictment, on or about April 7, 2013, VASQUEZ, an alien who had previously been removed from the United States, was found in the United States, within the Eastern District of Louisiana, without having obtained consent from the Secretary of the Department of Homeland Security to reapply for admission to the United States.
If convicted, VASQUEZ, who was convicted of a felony prior to his previous removal, faces a maximum term of imprisonment of 10 years, a fine of $250,000.00 and 3 years of supervised release following any term of imprisonment.
U. S. Attorney Boente reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by United States Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE) as part of Operation Safe Neighborhood. The prosecution is being handled by Special Assistant United States Attorney Robert Weir.
(Download Indictment )
Maryland Resident Enters Plea to Failure to Update Sex Offender RegistrationRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
CLARKSBURG, WEST VIRGINIA — A 36-year old Baltimore, Maryland, resident entered a plea of guilty on April 16, 2013, in United States District Court in Clarksburg before Magistrate Judge John S. Kaull.
United States Attorney William J. Ihlenfeld, II, announced that: TIMOTHY WAYNE WALDEN entered a plea of guilty to “Failure to Update Sex Offender Registration.” From November 12, 2012, to January 17, 2013, in Bayard, West Virginia, WALDEN knowingly failed to update a registration pursuant to the Sex Offender Notification Act. WALDEN, who is in custody pending sentencing, faces up to 10 years imprisonment and a $250,000 fine.
These cases was prosecuted by Assistant United States Attorney Shawn A. Morgan and were investigated by the United States Marshals Service.
Manhattan U.S. Attorney Announces Convictions of Two U.S. Citizens for Conspiring to Aid the TalibanRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that ALWAR POURYAN and ODED ORBACH, two U.S. citizens, were found guilty of conspiring to provide material support to the Taliban and conspiring to acquire anti-aircraft missiles. The case arose from a U.S. Drug Enforcement Agency (“DEA”) undercover operation in which the defendants agreed to provide various military-grade weapons, including heat-seeking surface-to-air missiles, to an individual they believed to represent the Taliban. POURYAN and ORBACH were convicted after a two-week bench trial before U.S. District Judge Naomi Reice Buchwald.
Manhattan U.S. Attorney Preet Bharara stated: “By agreeing to sell arms to a source they believed represented the Taliban, Alwar Pouryan and Oded Orbach betrayed their country, and all the U.S. citizens they were willing to put in harm’s way. Now they stand convicted and will pay the price for their crimes and their betrayal. I want to thank our international law enforcement partners for their extraordinary efforts and cooperation, in particular, the DEA, and the dedicated prosecutors from this Office for their outstanding work in prosecuting this case.”
According to evidence presented at trial and documents previously filed in Manhattan federal court:
Beginning in the fall of 2010, and continuing through their arrests on February 10, 2011, POURYAN and ORBACH communicated with a confidential source (the "CS") working with the DEA who purported to represent the Taliban. The communications occurred by telephone, via e-mail, and in a series of audio-recorded and videotaped meetings over several months.
During meetings in Ghana, Ukraine, and Romania beginning in November 2010, POURYAN and ORBACH, at different times, agreed to arrange the sale of weapons to the CS for the Taliban’s use against U.S. military forces in Afghanistan. At the meetings, POURYAN and ORBACH discussed weapons specifications, pricing, and the provision of training in the use and deployment of various weapons, including, among others, “Stinger” surface-to-air missiles, anti-tank missiles, grenade launchers, and M-16 assault rifles. POURYAN and ORBACH were informed that the surface-to-air missiles, in particular, were needed to protect Taliban heroin laboratories against attacks by U.S. helicopters. The defendants also offered to provide regular shipments of ammunition. In total, POURYAN and ORBACH agreed to provide over $25 million in weapons, ammunition, and training, and expected to make over $800,000 in commissions in connection with the transaction.
The evidence also included internal e-mail and Skype communications between the defendants, which showed them discussing the various weapons requested by the purported Taliban representative, drafting price lists and payment schedules for the weapons, and creating internal budget documents that reflected the expenses and anticipated income from the weapons deal. The evidence also included emails from ORBACH to third-party weapons suppliers seeking to obtain certain of the requested weapons.
Following the final meeting in Bucharest, Romania on February 10, 2011, POURYAN and ORBACH were arrested by Romanian authorities in coordination with the DEA. On April 29, 2011, the defendants were transferred by the Government of Romania to the custody of the United States to face charges in the Southern District of New York.
POURYAN, 38, of Phoenix, Arizona, and ORBACH, 55, of Highland Park, Illinois, each face a maximum sentence of life in prison and a mandatory minimum sentence of 25 years in prison for the anti-aircraft missile count. They also face a maximum sentence of 15 years for the material support count. The defendants are scheduled to be sentenced by Judge Buchwald on September 4, 2013.
The charges, arrests, transfers, and prosecution of the defendants were the result of close cooperation among the U.S. Attorney’s Office for the Southern District of New York, the Special Operations Division of the DEA, the DEA Warsaw Country Office, the DEA Ghana Country Office, the DEA Athens Country Office, the DEA SECI (South East European Cooperative Initiative Regional Center for Combating Transborder Crime), the Criminal Division’s Office of International Affairs and the National Security Division of the U.S. Department of Justice, the U.S. Attorney’s Office for the Northern District of Illinois, the U.S. Department of State, U.S. Immigration and Customs Enforcement, and the governments of Romania and Ukraine.
Mr. Bharara expressed his sincere gratitude for the work of the Romanian National Prosecutor’s Directorate for Investigating Organized Crime and Terrorism, the Romanian Prosecutor’s Office of the Court of Appeals, and the Romanian National Police Directorate for Investigating Organized Crime.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Christian R. Everdell, Aimee Hector, and Glen A. Kopp are in charge of the prosecution.