Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
30 May 2013
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on May 29, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, the following individual was arraigned:
KRYSTEL A. BUCKLAND, a 31-year-old resident of Billings, appeared on a charge of acquiring a controlled substance by fraud. She is currently released on special conditions. If convicted of this charge, BUCKLAND faces possible penalties of 4 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Brendan P. McCarthy is the prosecutor for the United States. The investigation was conducted by the Drug Enforcement Administration.
The defendant pled not guilty to the charge.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on May 29, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, the following individual was arraigned:
AUSTIN LEO HAGMAN, a 23-year-old resident of Missoula, appeared on a charge of conspiracy to distribute cocaine. He is currently released on special conditions. If convicted of this charge, HAGMAN faces possible penalties of a mandatory minimum of 5 years and could be sentenced to 40 years, a $5,000,000 fine, and 4 years supervised release. Assistant U.S. Attorney Tara J. Elliott is the prosecutor for the United States. The investigation was conducted by Federal Bureau of Investigation.
The defendant pled not guilty to the charge.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Illinois Sex Offender Sentenced in Faiture to Register CaseRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Marcus Tunstall, 39, formerly of St. Louis, Illinois, who was convicted of failing to register as a sex offender, was sentenced to two years in prison and five years supervised release by U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that the defendant left the State of Illinois in August 2012 to come to the Western District of New York and knowingly failed to register as a sex offender. In addition, Tunstall failed to update his registration status with Illinois authorities to advise them that he had left that state.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.The sentence was the culmination of an investigation on the part of the United States Marshals Service under the direction of United States Marshal Charles Salina.
Identity Theft and Tax Fraud Ring Members Admit GuiltRead the Press Release
ATLANTA - Shawn Brown, Christopher Edwards, Kelly Sue Lonas and Nyron Nelson pleaded guilty in federal district court for their roles in an identity theft and fraudulent tax return ring that sought millions of dollars in fraudulent refunds.
“Those who file false tax refund claims using stolen identities threaten the integrity of our federal income tax system and pose a real danger to the financial security of the individuals whose identities are stolen,” said U.S. Attorney Sally Quillian Yates. “Citizens of this district should know we are dedicated to prosecuting thieves like these and to deterring similar crimes.”“IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority,” stated Veronica Hyman-Pillot SAC, Atlanta Field Office. “These individuals demonstrated a blatant disregard of the integrity of the United States tax system and caused undue hardship to innocent victims. IRS Criminal Investigation, together with our partners at the U.S. Attorney’s Office remain committed to holding those who engage in similar conduct accountable.”
According to United States Attorney Yates, the charges and other information presented in court: From approximately January 2010 to March 2013, Brown led a criminal organization that engaged in a scheme to defraud the Department of the Treasury by filing fraudulent income tax returns and negotiating fraudulent tax refunds using stolen identities. This is commonly called stolen identity refund fraud. Brown had ties to criminal organizations in Chicago and Atlanta that engaged in this type of fraud. The defendants used the stolen identities along with fake wage and withholding information to prepare over one thousand fraudulent tax returns which claimed over $5 million dollars in refunds. The defendants also established shell corporations and bank accounts to facilitate the fraud.
On May 28, 2013, Kelly Sue Lonas and Nyron Nelson pleaded guilty to conspiring to commit wire fraud. On May 29, 2013, Shawn Brown pleaded guilty to conspiring to commit wire fraud and aggravated identity theft. On May 30, 2013, Christopher Edwards pleaded guilty to aggravated identity theft. As part of their plea agreements, the defendants have agreed to forfeit their interest in a luxury vehicle and jewelry purchased using illegal proceeds.
The defendants, Shawn Brown, of Atlanta, Ga.; Christopher Edwards, of Eutaw, Ala.; Kelly Sue Lonas and Nyron Nelson, both of Marietta, Ga.; were indicted in November 2012, along with other co-defendants on one count of conspiring to commit wire fraud and multiple counts of aggravated identity theft. The wire fraud count carries a maximum sentence of 20 years in prison and the aggravated identity theft charge carries a mandatory two-year consecutive sentence to any other sentence imposed. Each count also carries a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Sentencing hearings will be scheduled in September 2013 before United States District Judge Amy Totenberg.This case is being investigated by Special Agents of the Internal Revenue Service Criminal Investigation and Task Force Officers with the Federal Bureau of Investigation and Alpharetta Police Department.
Assistant United States Attorney Jeffrey A. Brown is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Hyperion Bank Assistant Manager Charged with EmbezzlementRead the Press Release
PHILADELPHIA - Tiffany Roberson, 29, of Philadelphia, Pennsylvania, was charged today by Indictment with embezzlement of bank funds by a bank employee, announced United States Attorney Zane David Memeger. According to the Indictment, Roberson, an assistant manager at Hyperion Bank, embezzled and misappropriated approximately $20,000 in moneys, funds and assets intrusted to the custody and care of Hyperion Bank and its employees.
If convicted, Roberson faces a total maximum sentence of 30 years imprisonment, a $1,000,000 fine, 5 years supervised release, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation in Philadelphia and is being prosecuted by Assistant United States Attorney Anita Eve.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Hopkins Man Pleads Guilty to Making False Statements During Purchase of FirearmsRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 34-year-old Hopkins man pleaded guilty to making false statements to Federally Licensed Firearms Dealers (“FFL”) for the purpose of illegally purchasing firearms for individuals in Honduras. Jony Sevilla Cerna pleaded guilty to one count of making false statements to a FFL in connection with the acquisition of a firearm. Cerna, who was charged on March 15, 2013, entered his plea before United States District Court Judge Susan Richard Nelson.
In his plea agreement, Cerna admitted that on March 29, 2012, he made a false written statement to a licensed Minnetonka firearms dealer when he was purchasing a nine-millimeter pistol. In that written statement, Cerna asserted that he was buying the gun for himself, when, in fact, he was not.
In addition, Cerna admitted to the court that he had made similar false statements to various licensed firearms dealers while purchasing 26 other firearms. In truth, he had purchased each of those firearms on behalf of individuals in Honduras.After acquiring the firearms under the false pretense that he was buying the firearms for himself, Cerna admittedly shipped or attempted to ship the firearms to Honduras by concealing them in electronic equipment. Cerna traveled to Honduras on several occasions to distribute the firearms he had shipped there to third parties and to take payment for the firearms he exported. Seven of the firearms Cerna shipped were discovered and seized at a freight-forwarding company in Miami, Florida.
For his crime, Cerna faces a potential maximum penalty of ten years in federal prison. Judge Nelson will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant U.S. Attorney Surya Saxena.Hartford Crack Dealer Sentenced to More Than Seven Years in Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that MORRIS CARTER, III, also known as “Chilly Mo, Jr.” and “Mo,” 24, of Hartford, was sentenced today by Chief United States District Judge Alvin W. Thompson in Hartford to 92 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine.
This matter stems from “Operation Vinefield,” a joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force targeting narcotics trafficking and gang violence in Hartford’s North End. As a result of the nine-month investigation, 38 individuals were charged with various offenses related to the distribution of crack cocaine and the unlawful possession and dealing of firearms in and around Hartford.
According to court documents and statements made in court, the investigation revealed that CARTER conspired with Joshua Easterling to distribute crack cocaine in Hartford’s lower Vine Street area.
CARTER has been detained since his arrest on February 23, 2012. On November 28, 2012, he pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute 28 grams or more of cocaine base (“crack cocaine”).
Easterling has pleaded guilty and awaits sentencing.
This matter has been investigated by the FBI’s Northern Connecticut Violent Crimes Task Force, the Connecticut State Police, the Hartford Police Department, and the Connecticut Department of Correction. The case is being prosecuted by Assistant United States Attorney Brian P. Leaming.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Hagerstown Drug Dealer Exiled to 10 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Vincent Hernandez, age 31, of Hagerstown, Maryland, today to 10 years in prison followed by five years of supervised release for conspiring to distribute cocaine base, possession of a firearm in furtherance of the drug conspiracy and being a felon in possession of a gun. Judge Motz enhanced Hernandez’s sentence upon finding that he has a prior felony conviction for a drug offense.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division and Washington County Sheriff Doug Mullendore.
According to evidence presented at the three day trial, from November 2009 to January 2010, an individual made four controlled buys of crack cocaine supplied by Hernandez. After the fourth purchase on January 6, 2010, members of the Washington County Task Force and DEA executed a search warrant at Hernandez’s home and seized drug paraphernalia including a digital scale, plastic baggies; names and telephone numbers of drug customers; a handgun and bullets; and $4,135. Due to Hernandez’ previous felony conviction, he was prohibited from possessing a gun.
United States Attorney Rod J. Rosenstein commended the DEA and Washington County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Peter M. Nothstein, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Governor Martinez's Former Campaign Manager Indicted on Computer Intrusion and False Statement ChargesRead the Press Release
ALBUQUERQUE – U.S. Attorney Kenneth J. Gonzales and Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI, announced that a federal grand jury has indicted Jamie Estrada, 40, of Los Lunas, N.M., on computer intrusion and false statement charges. The charges against Estrada arise out of the interception of wire communications intended for others, including New Mexico Governor Susana Martinez and members of her staff.
Counts 1 through 12 of the 14-count indictment allege that Estrada unlawfully intercepted wire communication intended for individuals who had email accounts on an internet domain owned by the Governor’s political organization. According to the indictment, the unlawful interceptions occurred between July 2011 and June 2012. Counts 13 and 14 charge Estrada with making false statements to the FBI in Sept. 2012, in which he allegedly denied taking certain actions to unlawfully intercept wire communications as charged in Counts 1 through 12 of the indictment. Estrada’s arraignment hearing has yet to be scheduled.
In announcing the indictment, U.S. Attorney Gonzales said, “This indictment reflects the high value that my Office places on preserving the integrity of our electronic communications in a digital age. In a time when so much of our personal, professional and financial information is repeatedly transmitted on a daily basis over email and other means of wire communication, it is of paramount importance that we protect electronic information from being diverted, stolen or otherwise misappropriated.”
Special Agent in Charge Lee added, “Thousands of intrusions into corporate networks, personal computers, and government systems occur daily, threatening our privacy, business secrets and even national security. The Albuquerque FBI Division has devoted considerable resources into confronting this growing cyber threat, which is why this indictment today is so important to us. I would like to congratulate the FBI Special Agents and professional staff for their hard work on this case, as well as the U.S. Attorney's Office. The FBI will continue to aggressively pursue individuals who would violate other people’s privacy not by breaking into homes and offices, but by sneaking into computers and wireless devices.”
According to the indictment, in summer 2009, Governor Martinez, who was then the District Attorney in Dona Ana County, N.M., began assembling a political campaign as she prepared to enter the Nov. 2010 gubernatorial race. In July 2009, one of the Governor’s early political supporters registered an internet domain that was designated as www.susana2010.com (the Domain) for a two-year period through an online service. The supporter then donated the Domain, including its username and password, to the Governor’s political organization. The username and password were required for making administrative changes to the Domain, including posting content to the Domain’s website and creating email accounts associated with the Domain. The username and password also were required to renew the registration for the Domain, which was scheduled to expire on July 18, 2011. As the owner of the Domain, the Governor’s political organization had the exclusive right to renew the registration before it expired and during a 42-day grace period following the expiration date.
The indictment alleges that, during the gubernatorial campaign, the Domain became an important tool for the Governor’s political organization. Members of the campaign staff, including Governor Martinez, maintained email accounts on the Domain which they used to communicate with each other as well with the Governor’s political supporters and the media. Estrada allegedly joined the Governor’s political organization as the campaign manager in July 2009, and, in that capacity, was provided with the username and password for the Domain. Estrada allegedly left the campaign in Dec. 2009. Before his departure, the Governor allegedly sent Estrada an email requesting that he return all information belonging to the campaign, including any usernames and passwords to any accounts.
After Governor Martinez was inaugurated in Jan. 2011, the Governor, members of her staff and others continued to use the email accounts associated with the Domain. In July 2011, individuals who had email accounts on the Domain began receiving reports that emails sent to those accounts were bouncing back to the senders and soon determined that the emails were not getting delivered because the Domain had expired. Their efforts to re-register the Domain were unsuccessful because they could not locate or recall the Domain’s username and password. In July 2011 and as part of their efforts to locate the username and password, the Governor’s staff allegedly asked Estrada to provide this information and Estrada allegedly refused to comply with the request.
According to the indictment, in late July 2011, Estrada allegedly used the username and password to renew the Domain and to change the Domain’s settings so that, instead of going to their intended recipients, incoming email communications were directed to an email account on a different domain that was controlled by Estrada. As a result, between late July 2011 and June 2012, Estrada allegedly received email communications intended for recipients, including Governor Martinez and members of her staff, who had email accounts associated with the Domain.
An indictment merely alleges that crimes have been committed, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque Division of the FBI and is being prosecuted by Assistant U.S. Attorneys John C. Anderson and Fred J. Federici.
Indictment
Ft. Lauderdale Man Charged with Obstruction of Proceedings and Providing False Testimony Before the U.S. Securities and Exchange CommissionRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced that Robert J. Vitale, 42, of Ft. Lauderdale, Florida, was charged by Information with obstruction of proceedings and providing false testimony before the U.S. Securities and Exchange Commission (SEC). Specifically, the Information charges one count of obstruction of proceedings before an agency of the United States, in violation of Title 18, United States Code, Section 1505, and one count of perjury, in violation of Title 18, United States Code, Section 1621. Vitale faces a potential sentence of up to five years imprisonment and a $250,000 fine as to each count.
According to the Information, in or around May 2012, the SEC was conducting an official investigation into allegations that Vitale engaged in violation of the securities laws. As part of the investigation, the SEC attempted to identify assets and bank accounts attributable to Vitale. On or about June 4, 2012, Vitale completed and provided to the SEC, a “Background Questionnaire” form purporting to list bank accounts and other assets attributable to him. Shortly before completing the questionnaire, Vitale transferred $100,000 from an account that was disclosed on the form, to a separate account that he controlled.
As alleged in the Information, Vitale willfully failed to disclose the existence of the funds or the bank account holding the funds, to the SEC. Thereafter, on June 5, 2012, Vitale provided sworn testimony to the SEC at the SEC’s Southeast Regional Offices, in Miami, Florida. During this sworn testimony, the Information alleges, Vitale provided false testimony about his assets and accounts, as well as the accuracy of the Information provided on the form he had submitted to the SEC.
Previously, in an unrelated matter, on or about August 15, 2006, the United States District Court for the Southern District of Florida entered a Final Judgment in SEC v. Robert Vitale, et al., No. 04-60493 (the “2004 Case”), in which Vitale was, among other things, ordered to pay disgorgement and civil penalties of $100,025 for alleged violations of the federal securities laws. As of June 5, 2012, the Information alleges, Vitale had failed to satisfy his obligations from the 2004 Case.
United States Attorney Wifredo A. Ferrer stated, “The SEC plays a vital role in policing our nation’s securities markets and protecting investors from misconduct. We will not allow defendants to obstruct the SEC or provide false testimony to thwart the due administration of justice.”
“The FBI will vigorously investigate and seek prosecution of individuals who allegedly attempt to obstruct an agency of the United States from carrying out its mission, such as the SEC’s efforts to protect investors. When an individual provides false testimony or conspires to obstruct justice, our system of justice is undermined,” said Michael B. Steinbach, Special Agent in Charge, FBI Miami Division. We will continue to work with the U.S. Attorney’s office, the SEC and our other partners to safeguard the integrity of the legal system.”
Mr. Ferrer commended the investigative efforts of the FBI and the SEC. The matter is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Travel Agent Convicted in Scheme to Cash Tax Refunds Obtained with Stolen IdentitiesRead the Press Release
Orlando, FL - U.S. Attorney Robert E. O'Neill announces that a federal jury has found Ana Orosa Parada (49, Orlando) guilty of conspiracy to obtain payment of false claims. Parada faces a maximum penalty of 10 years in federal prison. Her sentencing hearing is scheduled before U.S. District Judge Charlene E. Honeywell on August 13, 2013. Parada was indicted on September 19, 2012.
According to testimony and evidence presented at trial, Marisol Panel and her husband, Wilfredo Flores, both held travel accounts at “Holiday Travel and Tours.” Panel testified that she had illegally obtained identities of adults and children who lived in Puerto Rico and said that she prepared tax returns using a tax filing program and paid local residents to receive refund checks at their residences. After the refund checks arrived, Panel and her co-defendant husband, Flores, would pick up the refund checks and deliver them to Parada. Parada would either cash the refund checks belonging to the identity theft victims or apply the checks to Panel and Flores' travel packages. Parada testified that she knew cashing and exchanging the refund checks for Panel and Flores’ travel packages was wrong.
Bank records showed Prada deposited 123 refund checks into her business checking account. The records also showed business checks which Parada had made payable to Marisol Panel for the amount of the refund checks, minus the fee Parada had charged for cashing the checks. Parada’s fee ranged from $700 to $1,000 per check. Other evidence showed that refund checks also had been applied to the cost of the travel packages purchased through Parada’s now defunct travel agency (Holiday Travel and Tours).
Both Panel and Flores have pleaded guilty for their role in the conspiracy. They are scheduled to be sentenced on July 9, 2013.This case was investigated by the Internal Revenue Service-Criminal Investigation. It is being prosecuted by Assistant United States Attorney Tanya Davis Wilson.
Former Preschool Teacher David Moe Pleads Guilty to Distribution of Child PornographyRead the Press Release
NOTE: Click here for a copy of the signed plea agreement
DENVER – Former Paddington Station preschool teacher David Moe, age 46 of Denver, pled guilty this afternoon before U.S. District Court Judge William J. Martinez to distribution of child pornography, U.S. Attorney John Walsh and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Kumar Kibble announced. Moe appeared at the change of plea hearing in custody. Judge Martinez is scheduled to sentence Moe on September 10, 2013 at 3:00 p.m.
According to court documents, including the stipulated facts contained in the plea agreement, on May 4, 2012, a detective with the Loveland Police Department, who is a member of the Internet Crimes Against Children (ICAC) Task Force, while working in an undercover capacity, logged on to the Internet and accessed a peer-to-peer file sharing program. The undercover detective attempted to download a digital file believed to contain child pornography from a remote host computer. The detective was able to connect directly to the remote host computer and the requested file was placed in queue. He remained in queue to receive the file until May 6, 2012, when the connection was terminated. The detective was unable to complete the download.
Using investigative techniques, the detective was able to determine that the defendant was offering a child pornography file for distribution. It was later determined that the Internet Protocol (IP) address offering the child pornography file for distribution resolved to Moe’s residence in Denver, Colorado. A federal search warrant was obtained by HSI and was executed on July 24, 2012. During the execution of the search warrant, items containing child pornography were seized, including two desktop computers, numerous external hard drives, and 383 CDs and DVDs. All of the items seized by HSI belonged to the defendant.
During the execution of the warrant, agents learned from the defendant that he had been a teacher at Paddington Station preschool for the last 18 years. At the time of the search warrant, Moe taught Cultural Rhythms/Enrichments (3 to 5 year olds) and had been the Director of Enrichments and Before and After School Care programs since 2005.
A forensic examination was conducted of the defendant’s computers, external hard drives, CDs and DVDs. Evidence of distribution and receipt of child pornography was found on the defendant’s two computers and an external hard drive. Evidence of child pornography possession was found on the defendant’s computers, external hard drives, and 383 CDs and DVDs. At least 800,000 child pornography/erotica images and over 13,000 child pornography/erotica videos were located on the defendant’s computers and computer media, including the video that had been made available to the undercover detective in May 2012.
A forensic examination reflected that the child pornography possessed by the defendant was well organized and archived. The examination revealed that the defendant possessed child pornography for at least 10 years. Further, the examination revealed that the defendant distributed and received child pornography since at least 2007. The defendant’s child pornography collection included pornographic depictions of children as young as toddlers.
As described in the plea agreement, a forensic examination was conducted on the defendant’s computers and computer media. All images and videos of child pornography recovered during forensic examination were provided to the National Center for Missing and Exploited Children (NCMEC). A thorough review of all of the images and videos possessed by the defendant reflected no evidence that the defendant himself created or produced child pornography. Today he pled guilty to distributing existing child pornography.
“Combating the exploitation of children is one of the highest priorities of the U.S. Attorney’s Office here in Colorado, and of federal law enforcement,” said U.S. Attorney John Walsh. “Thanks to the excellent forensic work of HSI, and the hard work of the prosecutors in the U.S. Attorney’s Office, we have obtained a stiff guilty plea from a defendant who distributed large quantities of child pornography, while working with children in a school.”
“Predators who possess child pornography like David Moe, share their huge collections with other predators as if they were trading baseball cards, without any thought or care that each image represents a traumatized helpless child victim,” said Kumar C. Kibble, special agent in charge, HSI Denver. “HSI’s ongoing Operation Predator initiative is an extremely active program targeting and pursuing prosecution for these callous criminals who sexually exploit children.”
Moe faces a mandatory minimum five years in federal prison, and a maximum of not more than 20 years in federal prison. He also faces a term of supervised release of not less than 5 years, and up to life. In addition, Moe faces a fine of up to $250,000 as well as restitution. He will also be required to register as a sex offender. Finally, he has agreed to forfeit all of his computers and computer media containing child pornography.
This case is being investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI).
Moe is being prosecuted by Assistant U.S. Attorney Alecia Riewerts Wolak.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/ For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
####
Former Navy Engineer Pleads Guilty to Organizing and Managing Multi-Million Dollar Fraud Scheme; Associate Admits to Stealing Government FundsRead the Press Release
PROVIDENCE, R.I. – Ralph M. Mariano, of Warwick, R.I., a former senior systems engineer with the United States Navy’s Naval Sea Systems Command (NAVSEA) in Newport, R.I., and Washington, D.C., pleaded guilty in U.S. District Court in Providence, R.I., today to conspiracy and to defrauding the U.S. Government of between $7 million and $20 million by directing co-conspirators to bill the Navy for work that was never performed, announced Peter F. Neronha, United States Attorney for the District of Rhode Island.
Mariano admitted to the court that from 1999 to 2011, he used his position at NAVSEA to direct Russell Spencer, of Portsmouth, R.I., a computer software specialist, to submit millions of dollars in fraudulent invoices to Navy contractor Advanced Solutions for Tomorrow (ASFT), a Georgia and Middletown, R.I. company. Mariano admitted to the court that he directed ASFT to pay Spencer the full amount of the false invoices with money ASFT received from the Navy. Mariano admitted that the total amount of government money falsely obtained and paid to Spencer was approximately $17,957,000. The invoices were processed by Patrick Nagle, Chief Financial Officer of ASFT.
At the time of his guilty plea, Mariano admitted to the court that he used a system of codes to direct Spencer to distribute the government funds to Mariano and individuals close to Mariano. Mariano admitted that he himself received $3,081,671 of Navy funds by checks from Spencer. In addition, Mariano admitted to receiving bi-weekly $3,500 cash payments of Navy funds from Spencer from 2004–January 2011.
Mariano admitted to the court that little or no work was ever performed by Spencer in exchange for the government funds Spencer received and distributed at his direction. According to information provided to the court, Spencer provided ASFT and its subcontractors with numerous documents that purported to be work product over the years. Spencer typically provided ASFT with documents that he had taken from his employer, Electric Boat, without its consent. Spencer made cosmetic changes to the documents before submitting them to ASFT. Despite the fact that Spencer spent very little time making cosmetic changes to these documents, he billed ASFT upwards of $200,000 per month.
Mariano admitted to the court that at his direction, $2,567,028 was paid to his father, Ralph Mariano, Jr., of North Providence, R.I.; $1,692,650 was paid to his brother, Joseph Mariano, and to his companies; $207,900 was paid to a veterinary laboratory company controlled by his sister, Michelle Mariano; $2,446,445 was paid to private entities controlled by Anjan Dutta-Gupta, of Roswell, GA, Chief Executive Officer of now defunct ASFT.
In addition, Mariano admitted to the court that $478,880 in government funds fraudulently obtained was paid to a company owned by Attorney Mary O’Rourke, of Warwick, R.I. O’Rourke pleaded guilty in U.S. District Court today to one count of theft of government property. O’Rourke admitted to the court that she submitted false invoices to Spencer from 2005–2011, and that she was paid with government funds for work that was never performed.
In addition to pleading guilty to conspiracy and theft of government funds, Ralph Mariano pleaded guilty today to one count of tax evasion. Mariano admitted to the court that from 2006-2009 he failed to report $1,864,910 in income he received from Russell Spencer. Mariano admitted that he owes the IRS $726,650.
Ralph Mariano and Mary O’Rourke are scheduled to be sentenced on September 5, 2013, by U.S. District Court Chief Judge Mary M. Lisi, who presided over today’s change-of-plea hearings.
Anjan Dutta-Gupta, who pleaded guilty on April 28, 2011, to one count of bribery, is scheduled to be sentenced on July 25, 2013, by U.S District Court Chief Judge Mary M. Lisi.
Russell Spencer, who pleaded guilty on July 25, 2012, to one count of conspiracy to commit bribery and on April 19, 2012, to one count of lying to the FBI, is scheduled to be sentenced on July 25, 2013, by U.S District Court Chief Judge Mary M. Lisi.
Patrick Nagle, who pleaded guilty on September 13, 2011, to one count of conspiracy to commit bribery, is scheduled to be sentenced on July 26, 2013, by U.S District Court Chief Judge Mary M. Lisi.
Ralph Mariano, Jr., who pleaded guilty on May 15, 2013 to four counts of tax evasion, is scheduled to be sentenced on August 16, 2013, by U.S. District Court Chief Judge Mary M. Lisi.
The cases are being prosecuted by Assistant United States Attorneys Lee H. Vilker, Terrence P. Donnelly and Dulce Donovan.
This matter was investigated by agents from the Defense Criminal Services, Naval Criminal Investigative Service; Federal Bureau of Investigation; and Internal Revenue Service – Criminal Investigations.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. The President established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.
The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/Contact: 401-709-5357
[email protected]Former Illinois Prison Guard Charged with Illegally Selling Assualt Rifles and Other Firearms to Cooperating Former InmateRead the Press Release
CHICAGO – A former Illinois prison guard living in Arkansas was arrested on federal charges for allegedly illegally selling eight firearms, including five assault rifles, to an individual he knew was a convicted felon because they met when the individual was an inmate and they later remained in contact. The defendant, DWAYNE MEEKS, was arrested yesterday by FBI agents following an undercover investigation in which the former inmate, posing as a firearms trafficker, was cooperating with federal agents.
Meeks, 48, of Little Rock, Ark., and formerly of Chicago and Joliet, was charged with one count each of dealing firearms without a federal license and selling firearms to a convicted felon in a criminal complaint that was unsealed following his arrest. He was ordered to remain in federal custody pending a detention hearing at 1:15 p.m. Monday before U.S. Magistrate Judge Sidney I. Schenkier in Federal Court in Chicago.
According to the complaint affidavit, Meeks and the former inmate met in Chicago in May 2012 and Meeks began discussing selling various firearms and showing the cooperating individual photos of the weapons on his cell phone and via emails. They continued their discussions about arranging a deal involving multiple firearms through the next two months. On July 14, 2012, Meeks and the cooperating former inmate met in a suburban Cook County Forest Preserve where Meeks allegedly sold eight high-powered firearms to the individual for $18,000, consisting of $15,000 for the weapons from Meek’s supplier and $3,000 for Meeks’ delivery fee. FBI agents conducted surveillance and monitored audio and video-recorded transmissions of the alleged transaction, including during the transfer of the weapons from the back of Meeks’ truck to the trunk of a car driven by the cooperating individual.
On more than one occasion, Meeks described the assault rifles as “tact’d out,” meaning they included such features as night scopes and laser sights, the affidavit states. The weapons Meeks allegedly sold and were seized were: two .223 caliber assault rifles, a 5.56 caliber assault rifle, a .50 caliber assault rifle with an ammunition drum attached, a 7.62 caliber assault rifle, a .45 caliber semi-automatic pistol, a 9 mm semi-automatic pistol, and a .22 caliber rifle.
Meeks allegedly discussed selling additional firearms to the former inmate but a deal planned for the end of July 2012 did not occur following the mass shooting at a theater in Aurora, Col. They allegedly discussed another future firearms transaction but Meeks consistently reported the difficulty he was having finding firearms, according to the complaint. In early January of this year, Meeks allegedly complained to the former inmate about the continued difficulty finding firearms after the school shooting in Newtown, Ct., in December.
During the last two weeks, Meeks and the former inmate allegedly discussed Meeks arriving in Chicago yesterday to sell the cooperating individual at least eight additional firearms. Meeks was arrested yesterday when he arrived at the same Forest Preserve location where they met last summer and three AR15 assault rifles that he allegedly brought to sell were seized.
The arrest and charge were announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Cory B. Nelson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. Chicago Police Department task force officers assisted in the investigation.
Dealing firearms without a federal license carries a maximum sentence of five years in prison, and selling firearms to a convicted felon carries a maximum of 10 years, and each count carries a $250,000 maximum fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines. The Government is being represented by Assistant U.S. Attorney Ronald DeWald.
The public is reminded that a complaint is not evidence of guilt and that the defendant is presumed innocent and entitled to fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
Former Hilliard Resident Pleads Guilty to $1.5 Million Investment FraudRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Jeffrey G. Kelly, 45, formerly of Hilliard, Ohio, pleaded guilty in U.S. District Court to carrying out a $1.5 million investment fraud scheme between 2006 and 2011. The victims included family friends, relatives, fellow church members, parents of his children’s schoolmates, and a groomsman from his wedding. Kelly pleaded guilty to one count of wire fraud and one count of interstate transportation of a security taken by fraud.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI) announced the pleas entered today before U.S. District Judge Edmund A. Sargus Jr.
During the plea hearing, an FBI agent testified that Kelly owned and operated several businesses in the Columbus area and promised clients and potential clients that their money would be deposited in investment funds that included stocks, real estate investment trusts, bonds and other investments. Kelly never invested the clients’ money, but used the funds to pay his personal and business expenses as well as to repay earlier investors.
A federal grand jury indicted Kelly on December 11. FBI agents arrested Kelly at his workplace near his current home in Orlando, Florida. He was placed on bond and he returned to Ohio for court appearances.
Kelly operated businesses named Superior Financial Resources, LLC, J.G. Kelly Financial Group, LLC, J.G. Kelly Equities Group, LLC, and JGK Group, LLC.
Kelly received approximately $1,523,710 from investor clients. The plea agreement calls for Kelly to make restitution to the victims of the crimes.
U.S. Attorney Stewart commended the FBI agents who investigated the case with the assistance of the Ohio Department of Commerce Division of Securities, and Assistant U.S. Attorney Dale E. Williams Jr., who is representing the United States.
Wire fraud is punishable by a sentence ranging from probation to 20 years in prison. Interstate transportation of a security taken by fraud is punishable by a sentence ranging from probation to ten years in prison. Judge Sargus will set a date for sentencing.
Florida Accountant Sentenced to Federal Prison <br /> for Two Fraud SchemesRead the Press Release
Joseph Rizzuti, of Stuart, Fla., was sentenced to 80 months in federal prison for conspiracy to commit wire fraud and for corruptly endeavoring to obstruct the Internal Revenue Service (IRS), the Justice Department and the IRS announced today.
According to court documents, Rizzuti, an accountant and the owner of Beacon Accounting Services in Palm City, Fla., interfered with the IRS’s ability to collect taxes owed by two clients by stealing payments from those clients intended for the IRS and making misrepresentations to the clients, as well as the IRS, to conceal his scheme. Rizzuti also admitted to engaging in a criminal conspiracy to commit wire fraud by making material misrepresentations to individuals throughout the United States who believed the money they were investing with Rizzuti and his co-conspirators was funding Nigerian-related oil and Bahamian construction projects, but instead Rizzuti and his co-conspirators used the investors’ money for their own personal expenses. In total, Rizzuti and his co-conspirators stole approximately $3 million.
In addition to prison time, U.S. District Judge Donald L. Graham sentenced Rizzuti to serve three years of supervised release and to pay $298,000 in restitution to victims of his schemes to the IRS. Additional penalties will be assessed in the next 90 days.
This case was investigated by special agents of IRS - Criminal Investigation and the Treasury Inspector General for Tax Administration. Trial Attorneys Justin Gelfand and Rebecca Perlmutter of the Justice Department’s Tax Division prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Federal Sentence for Serial Internet Predator Highlights Online Dangers to ChildrenInternet Predator Used Social Networking Websites to Sexually Exploit and Extort ChildrenRead the Press Release
United States Attorney Sean R. Berry, Cedar Rapids Police Department Captains Steve O’Konek, Bernie Walther and Tom Jouker, and Cedar Rapids Police Department Lieutenant Craig Furnish announced today the sentencing of Lucas Robinson, age 24, from Cedar Rapids. Robinson was sentenced to 42 years in federal prison for one count of sexual exploitation of children, one count of possession of child pornography, and one count of extortion.
Between 2009 and 2012, Robinson victimized at least twelve minor females as part of his offenses. Robinson met most of his victims online and then later communicated with them by mobile telephone. His victims were between the ages of 12 and 15 and they lived in 7 different states in addition to Iowa. In order to obtain additional sexually explicit images of his victims, Robinson threatened to distribute sexually explicit images they already had sent to him. He threatened to distribute the images on websites, to a parent, to their friends, and to others they knew from school. Robinson convinced one female victim to share her Facebook password with him, and later told her that he had her password and could send sexually explicit images of her to her friends. Robinson extorted one of his victims to meet with him and have sex with him.
Robinson was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Robinson was sentenced to 42 years in prison to be followed by a 15-year term of supervised release after the prison term. There is no parole in the federal system. Robinson is being held in the United States Marshal’s custody until he can be transported to a federal prison.“Now that kids are home for the summer, parents need to keep in mind the dangers their children face on the Internet. Sexual predators are searching the Internet for children and can use social networking sites like Facebook to learn about and make contact with your child,” said United States Attorney Berry. “The Internet can be a wonderful resource for kids, but sadly, it is often used to prey on them.”
“Parents need to teach their children to use the Internet safely,” said Berry. “Children need to know that, by following certain rules, they can protect themselves while ‘surfing the net.’” Berry suggested parents to tell their children to:• Never post their name, address, telephone number, school name, parent’s name, or any other personal information.
• Never post or send pictures of themselves without permission from their parents.
• Never agree to meet face to face with someone they’ve met online without permission from their parents.
• Never respond to messages that have bad words, talk about their bodies, or seem scary or strange.
• Always tell their parents if they find something scary or threatening on the Internet.
Berry advised that parents should also monitor their children’s access to and use of the Internet. Parents should:
• Monitor their children when they’re online and monitor the time they spend online. Keep the computer in a common area of the house. If a child quickly changes the screen or becomes uneasy or defensive when a parent walks into the room, this could be a sign that the child is involved in something he or she should not be.
• Make sure that access to the Internet at school and at friends’ houses is monitored by adults.
• Watch for unexplained changes in their child’s behavior or attitude.
• Watch for unusual telephone calls or mail addressed to their child.
• Save any threatening e-mails or pornographic material received by their child and provide it to law enforcement officers.
“By paying attention and insisting on some common sense rules, parents can go a long way toward protecting their children from Internet predators like Lucas Robinson,” Berry said.
The Robinson case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Cedar Rapids Police Department, the Benton County Sheriff’s Office, and the Iowa Internet Crimes Against Children Task Force. Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-0089. The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”Essex County, N.J., Man Charged in Armed Robbery of StoreRead the Press Release
NEWARK, N.J. – Special agents of the FBI arrested an Essex County, N.J., man this morning in connection with the armed robbery of Belleville News and Food, U.S. Attorney Paul J. Fishman announced.
Bobby Dawson, 43, of East Orange, N.J., is charged by Complaint with one count of committing a Hobbs Act robbery and one count of brandishing a firearm during a crime of violence. He is scheduled to appear this afternoon before U.S. Magistrate Judge Madeline Cox Arleo in Newark.
According to the criminal Complaint unsealed today:
On April 17, 2013, Dawson, wearing a mask and brandishing a firearm, allegedly entered the Belleville News and Food store. He told the store clerk not to move or he would shoot. Dawson pointed his firearm at the store clerk’s head and demanded money from the cash registers. The store clerk complied and gave Dawson the money.
The Hobbs Act robbery charge is punishable by a maximum potential penalty of 20 years in prison. The weapons charge is punishable by a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other prison term. Each count also carries a maximum fine of $250,000 or twice the gross gain or loss.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s arrest. He also thanked the Belleville, Bloomfield, Kearny, Maplewood, Newark, Paramus, and Verona police departments, along with the N.J. State Police and the Essex County Prosecutor’s Office for their assistance.
The government is represented by Assistant U.S. Attorneys Jamari Buxton and Rahul Agarwal of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charge and allegations contained in the Complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
13-220
Defense Counsel: Candace Hom Esq., Assistant Federal Public Defender, Newark
Dawson, Bobby Complaint
Dresher Man Indicted on Child Porn ChargesRead the Press Release
Gary Kent, of Dresher, Pennsylvania, was charged today by Indictment, with two counts of distribution of child pornography, and two counts of possession of child pornography, announced United States Attorney Zane David Memeger. The indictment alleges that on or about September 13, 2012 and on or about January 27, 2013, Kent distributed images of child pornography, and on or about November 30, 2012 and on or about February 5, 2013, Kent possessed images of child pornography.
If convicted the defendant faces a maximum possible sentence of 60 years in prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by Department of Homeland Security, Immigration and Customs Enforcement (“ICE”) and is being prosecuted by Special Assistant United States Attorney Karen A. Fox.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Dresher Man Indicted on Child Porn ChargesRead the Press Release
Gary Kent, of Dresher, Pennsylvania, was charged today by Indictment, with two counts of distribution of child pornography, and two counts of possession of child pornography, announced United States Attorney Zane David Memeger. The indictment alleges that on or about September 13, 2012 and on or about January 27, 2013, Kent distributed images of child pornography, and on or about November 30, 2012 and on or about February 5, 2013, Kent possessed images of child pornography.
If convicted the defendant faces a maximum possible sentence of 60 years in prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by Department of Homeland Security, Immigration and Customs Enforcement (“ICE”) and is being prosecuted by Special Assistant United States Attorney Karen A. Fox.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525District Man Sentenced to 40 Months in PrisonRead the Press Release
For Robbery of Senior Citizen
-Defendant Accosted the Victim in Broad Daylight in Northwest Washington-WASHINGTON – Reggie Gordon, 29, of Washington, D.C., was sentenced today to a 40-month prison term on a charge of robbery for an attack against a senior citizen that took place earlier this year in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Gordon pled guilty in March 2013 in the Superior Court of the District of Columbia. The Honorable Heidi M. Pasichow sentenced him today. Upon completion of his prison term, Gordon will be placed on three years of supervised release.
According to the government’s evidence, Gordon accosted a 69-year-old man at about 2:40 p.m. on Feb. 8, 2013, in the area of 14th and Newton Streets NW. Gordon approached the victim from behind, with a knife in his hand, and demanded, “Give me the bag, give me the cash.” The victim handed over a bag, which contained cigarettes, and took money out of his pocket and handed it to Gordon. After Gordon fled, the victim flagged police, who immediately began searching the area. Gordon was stopped soon afterward by police and arrested.
In announcing the sentence, U.S. Attorney Machen commended the work of the officers of the Metropolitan Police Department (MPD). He also praised those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Debra McPherson and Todd McClelland, Intelligence Specialist Sharon Johnson, and Assistant U.S. Attorney Scott Ray. Finally, he thanked Assistant U.S. Attorney Phil Selden, of the Fourth District Unit of the Felony Major Crimes Section, who investigated and prosecuted the case.
13-190Detroit Woman Pleads Guilty in Heroin Distribution SchemeRead the Press Release
JOHNSTOWN, Pa. - A Michigan woman pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Megan Holton, 27, of Detroit, Mich., pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, from the spring of 2011 to May 15, 2012, Holton, along with co-defendants, conspired to distribute and possess with intent to distribute heroin.
Judge Gibson scheduled sentencing for Oct. 16, 2013, at 10:30 a.m. The law provides for a maximum total sentence of 20 years in prison and a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pennsylvania State Police and the Indiana Police Department conducted the investigation that led to the prosecution of Holton. Other agencies participating in this investigation included the Pennsylvania Attorney General’s Office, the Cambria County Drug Task Force, the Cambria County Sheriff’s Department, the Cambria County District Attorney’s Office, the Indiana County Drug Task Force, and the Indiana County District Attorney’s Office.
Detroit Man Caught Carrying Bag of Painkiller Pills from Greyhound Station Sentenced to 5 Years in Federal PrisonRead the Press Release
CHARLESTON, W.Va. – A Detroit man who arrived at a Charleston Greyhound Bus Station in February 2012 with a bag of illegal prescription painkillers was sentenced today to five years in federal prison, announced U.S. Attorney Booth Goodwin. Deangelo Cann, 23, previously pleaded guilty in August 2012 to interstate travel to promote drug activity. On February 7, 2012, Cann traveled by Greyhound Bus from Detroit to Charleston in possession of oxymorphone, also known as “Opana” and oxycodone pills. After arriving in Charleston, Cann left the Greyhound bus terminal carrying pills that were hidden inside of a dark gray bag. As Cann exited the bus station, he was approached by a uniformed police officer. Upon seeing the approaching officer, Cann immediately began to run with the bag. During the pursuit, Cann attempted to throw the bag. The bag of prescription painkillers was later recovered by police and Cann was arrested. Cann told police that he intended to both use and sell the pills.
The recovered pills were submitted to the West Virginia State Police lab and proved to contain oxymorphone and oxycodone.
The Metropolitan Drug Enforcement Network Team (MDENT) and the Charleston Police Department conducted the investigation. Assistant United States Attorney John Frail handled the prosecution. The sentence was imposed by United States District Judge Thomas E. Johnston.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Department of Justice Releases Report to Congress on Indian Country Investigations and ProsecutionsRead the Press Release
The Department of Justice released today a report to Congress entitled Indian Country Investigations and Prosecutions which provides a range of enforcement statistics required under the Tribal Law and Order Act of 2010. The report, based on data compiled from the case management system used by U.S. Attorney’s Offices (USAO) with Indian Country jurisdiction shows among other things a 54 percent increase in Indian Country criminal prosecutions since Fiscal Year 2009.
“Across the country, U.S. Attorneys have been focused on fighting crime in Indian Country and reinforcing the bond between federal and tribal law enforcement, which also strengthens the faith that people have in their criminal justice system,” said Attorney General Eric Holder. “This report on federal law enforcement efforts in Indian Country is beginning to show the fruits of this labor with an increase in Indian Country cases prosecuted in federal courts over the past three years, but we have more work to do. The department will continue in its commitment to working with our tribal partners to build safe, sustainable, and healthy communities in American Indian and Alaska Native communities.”
“Every day, the men and women from U.S. Attorney’s Offices who prosecute violent crimes in Indian Country work hard to improve public safety in those communities,” said Timothy Purdon, U.S. Attorney for the District of North Dakota and Chairman of the Attorney General’s Advisory Subcommittee on Native American Issues. “The notable increase in prosecutions of Indian Country crime described in this report are the result of the many initiatives led by U.S. Attorney’s Offices across the country, including community prosecution strategies that place federal prosecutors on the reservations on a frequent basis to enhance criminal investigations and communication, and Tribal Special Assistant U.S. Attorney programs that have enhanced coordination with cross-deputized tribal prosecutors. These efforts and the resulting increase in prosecutions are a testament to the Justice Department’s commitment to public safety in Indian Country and they are an encouraging step toward safer, stronger native communities.”
“The FBI has a sustained commitment to enhancing public safety in Indian Country,” said FBI Assistant Director Ron Hosko. “As this report demonstrates our investigative strategy is focused on fully leveraging vital partnerships with federal, state, local and tribal agencies to address violent crime and victimization in tribal communities. This approach not only produces investigative results in the short term but also develops the trust and collaboration necessary to ensure sustained enhancements to public safety in the long term.”
The information contained in the report shows the following:• The Justice Department’s prioritization of Indian country crime has resulted in a notable increase in commitment to overall law enforcement efforts in Indian country. Caseloads have increased overall from 1,091 cases filed in fiscal year (FY) 2009 to 1,138 in FY 2010 to 1,547 in FY 2011 to 1,677 in FY 2012. This represents a nearly 54 percent increase in the Indian country crime caseload.
• USAO data for calendar year (CY) 2011 indicate that just under 37 percent (1,041) of all Indian Country submissions for prosecution (2,840) were declined by USAOs. In CY 2012, USAOs declined approximately 31 percent (965) of all (3,145) Indian Country submissions for prosecution. Overall, a substantial majority of Indian Country criminal cases opened by USAOs were prosecuted.
• The most common reasons for declination by USAOs were insufficient evidence (61 percent in CY 2011 and 52 percent in CY 2012) and referral to another prosecuting authority (19 percent in CY 2011 and 24 percent in CY 2012).
• The most common reasons investigations during calendar years CY 2011 and 2012 were not referred included deaths determined to be due to non-criminal causes (e.g., natural causes, accidents, suicides) and allegations in which there was insufficient evidence to prove criminal activity.
•The report shows a new era of partnership between the federal government and American Indian tribes, including an unprecedented level of collaboration with tribal law enforcement. The increase in collaboration and communication strengthens the bond of trust between federal and tribal investigators, prosecutors, and other personnel in both federal and tribal criminal justice systems, and it will make communities safer as a result.
Read the entire report at www.justice.gov/tribal/tloa-report-cy-2011-2012.pdfRead about the Justice Department’s efforts to increase public safety in Indian County at www.justice.gov/tribal/accomplishments.html
Cyber-sting Nets Chinese National in Attempt to Export Sensitive Defense TechnologyRead the Press Release
Earlier today, Lisong Ma, a citizen of China, pled guilty at the federal courthouse in Brooklyn, New York, to violating the International Emergency Economic Powers Act by attempting to export weapons-grade carbon fiber from the United States to China. According to court filings and facts presented during the plea proceeding, Ma was arrested after attempting to close a deal to acquire and export the specialized materials, which have applications in the defense and aerospace industries and are therefore controlled for export by the United States Department of Commerce.
The plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York; Kenneth J. Siegler, Resident Agent-in-Charge of the Defense Criminal Investigative Service (DCIS), New York Resident Agency; and Sidney Simon, Special Agent-in-Charge, U.S. Department of Commerce (DOC), Office of Export Enforcement, New York Field Office.
During the investigation, federal agents tasked with protecting sensitive technology maintained a covert cyber-presence on web sites related to the brokering, purchase and sale of controlled commodities. In February 2013, the defendant, using the name “Ma Li,” e-mailed an undercover agent and indicated that he was interested in acquiring several different types of high-grade carbon fiber. Then, through various online communications, the defendant attempted to negotiate the purchase of five tons of carbon fiber. Based on a review of Internet Protocol log-in information, investigators discovered that the defendant was communicating from the People’s Republic of China.
On March 12, 2013, the defendant and undercover agents engaged in an online video teleconference session, which was recorded. During the teleconference, the defendant and the undercover agents discussed the license requirement to export certain types of carbon fiber from the United States. One of the agents told the defendant: “We can’t send this to China without an export license, otherwise we risk going to jail.” The defendant then told agents that he would soon be traveling to the United States, and arranged a meeting to further discuss the terms of a deal. On March 27, 2013, the defendant met with undercover agents in the United States. During the meeting, which was covertly recorded, the defendant requested a sample of carbon fiber, because it was “easier” and “safer” to ship, and later commented: “There is a greater chance that the authorities will arrest you if you get a third party involved. That is why it’s better to go directly from the U.S. to China.”
The defendant ultimately decided to ship a sample of weapons-grade, Toray-type T-800 carbon fiber from the United States to China. He paid the undercover agents and placed the material into a plain brown box. Ma falsely indicated on the waybill and invoice that the package contained “clothing.” After the defendant finished packing the box and completing the shipping forms, the package was transported to a courier service, to be shipped to China. The package was thereafter intercepted by agents before it could be exported. Agents also intercepted and arrested the defendant shortly thereafter, as he transited Los Angeles International Airport on his way to Shanghai. He was then removed in custody to Brooklyn.
Certain types of carbon fiber, such as the type defendant Ma sought to acquire in this case, are closely controlled to protect national security. The regulation of carbon fiber falls under the jurisdiction of the Department of Commerce, which reviews and controls the export of certain goods and technology from the United States to foreign countries. In particular, the Commerce Department has placed restrictions on the export of goods and technology that it has determined could make a significant contribution to the military potential or nuclear proliferation of other nations, or that could be detrimental to the foreign policy or national security of the United States.
Carbon fiber composites are ideally suited to applications where strength, stiffness, lower weight, and outstanding fatigue characteristics are critical requirements. These composites also can be used in applications where high temperature, chemical inertness, and high damping are important. The two main applications of carbon fiber are in specialized technology, which includes aerospace and nuclear engineering, and in general engineering and transportation. In addition, certain carbon fiber-based composites, such as the material sought by the defendant, are used in military aircraft and unmanned aerial vehicles. Due to the scarcity of these types of materials, they command high prices on the open market and are highly sought after.
“The defendant tried to circumvent laws that protect our national security by preventing specialized technologies from falling into the wrong hands. The defendant was bent on exporting to China up to five tons of weapons-grade carbon fiber -- enough carbon fiber to stretch from Brooklyn to the Pacific Ocean,” stated United States Attorney Lynch. “Today’s conviction should leave no doubt that the United States will use every available technique, including covert cyber operations, to maintain the superiority of our nation’s armed forces.” Ms. Lynch praised the level of inter-agency cooperation in this case, and added that the government’s investigation is ongoing.
“Today’s conviction highlights the reality that even the most relentless of efforts to unlawfully acquire sensitive American technology will be foiled,” said HSI Special Agent in Charge Hayes. “This investigation provides a great example of how HSI and federal law enforcement are meeting the threat posed by tech savvy international smugglers head-on.”
“This plea demonstrates our resolve to investigate and prosecute those who choose to violate U.S. export control laws. We are proud to work with our law enforcement partners in protecting national security and leveling the playing field for legitimate commerce,” said DOC Special Agent-in-Charge Simon.
“This investigation demonstrates the continued commitment of the Defense Criminal Investigative Service, in cooperation with our law enforcement partners and the U.S. Attorney’s Office, to aggressively pursue those intent on acquiring and illegally exporting military grade materials. Too often these sensitive items find their way into the hands of adversaries and therefore present a potential threat to National Security and America’s war fighters.” stated DCIS Resident Agent-in-Charge Siegler.
Today’s plea took place before United States Magistrate Judge Vera Scanlon When sentenced, Ma faces up to 20 years in prison, as well as forfeiture and a fine of up to $1 million.
The government’s case is being prosecuted by Assistant United States Attorney Seth DuCharme, with assistance from Trial Attorney David Recker of the Department of Justice Counterespionage Section.
The Defendant:
LISONG MA
Age: 34Court Approves Consent Decree to Prevent and Address Racial Discrimination in Student Discipline in Meridian, Miss.Read the Press Release
The U.S. District Court for the Southern District of Mississippi today approved a landmark consent decree filed by the Justice Department, together with private plaintiffs and the Meridian Public School District in Meridian, Miss., to prevent and address racial discrimination in student discipline. The consent decree is a far-reaching plan to reform discipline practices, including suspensions, expulsions and school-based arrests that unlawfully channel black students out of their classrooms and, too often, into the criminal justice system.
“The consent decree approved by the court today will propel meaningful reform in Meridian schools and serve as a blueprint for school districts across the country,” said Jocelyn Samuels, Principal Deputy Assistant Attorney General for the Civil Rights Division. “We commend the Meridian Public School District for its commitment to keeping its students in safe and inclusive classrooms, and out of the school-to-prison pipeline.”
The consent decree amends a longstanding federal school desegregation decree enforced by the United States, which prohibits the district from discriminating against students based on race.The district has already started to take action to implement the consent decree, which requires it to:
• Limit discipline that removes students from classrooms, such as suspensions, expulsions and alternative placement, as well as end exclusionary consequences for minor misbehavior; • Expand use of a proven behavior management approach known as positive behavior intervention and supports and train teachers and administrators so they have the tools necessary to safely and effectively manage their classrooms and schools; • Prevent school officials from involving law enforcement officers when a student’s behavior can be safely and appropriately handled under school disciplinary procedures; • Provide training for school law enforcement officers on bias-free policing, child and adolescent development and age appropriate responses, practices proven to improve school climate, mentoring and working with school administrators; • Create clear entry and exit criteria at the alternative school and provide support to facilitate students’ transitions back to their home schools; • Enhance due process protections in student discipline hearings; • Monitor discipline data to identify and respond to racial disparities; and
• Engage families and communities as partners in revising policies and through regular school and community forums.“This consent decree is a major stride toward equal justice and equal opportunity for all students in Meridian,” said Gregory K. Davis, United States Attorney for the Southern District of Mississippi. “The court’s order is a powerful reminder to schools that they may not discriminate against students on the basis of race or another protected status in administering discipline.”
The department filed a related case against the Meridian Police Department, the Lauderdale County Youth Court and the State of Mississippi in October 2012, alleging that those defendants systematically violate the due process rights of students referred by the district. That case remains pending in the United States District Court for the Southern District of Mississippi.
The enforcement of Title IV of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, among other bases, in public schools is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Corpus Christi Jury Convicts Houston Man of Marijuana TraffickingRead the Press Release
CORPUS CHRISTI, Texas – A federal jury in Corpus Christi has found Luis Perez-Barocela guilty for his participation in a large drug trafficking conspiracy, United States Attorney Kenneth Magidson announced today. The jury returned its verdict just a short time ago after three days of trial and less than three hours of deliberation.
Perez-Barocela, 37, of Houston, was convicted of conspiracy to possess with the intent to distribute more than 1000 kilograms of marijuana from October 2011 until his arrest on Oct. 24, 2012.
Evidence at trial established that the organization moved large amounts of marijuana in tractor-trailers hauling produce through the Falufurrias Border Patrol checkpoint and on to other major cities within the United States. From October 2011 until April 2012, approximately 3,000 kilograms of marijuana was seized. Those seizure have, to date, resulted in the convictions of three tractor-trailer drivers, Jose Benitez, 46, of Houston, Ernesto Cabrera-Enriquez, 39, of Miami, Fla., Noe Galindo, 37, of Weslaco, as well as co-defendants Raul Peraza-Trejo, 44, of Miami, and Oscar Quijano, 43, of Dallas.
The government proved Peraza-Trejo would procure large loads of marijuana in the Rio Grande Valley, while Perez-Barocela was responsible for recruiting drivers. He and his co-defendants were also tasked with escorting the loads through the checkpoint while safely situated in other passenger vehicles and maintaining contact with the drivers by phone. Jurors also learned Quijano provided the organization with his tractor-trailer on several occasions for use in the smuggling venture.
Drivers Benitez, Cabrera-Enriquez, Galindo and others provided testimony that they were each recruited by Perez-Barocela and offered between $15,000 and $55,000 to drive approximately 700 pounds of marijuana through the checkpoint and on to various cities within the United States. However, they learned upon their arrest that they had actually been hauling between 1,200 and 2,800 pounds.
Agents with the Drug Enforcement Administration (DEA) and Homeland Security Investigations (HSI) testified as to photographs showing Perez-Barocela, his co-defendants and/or vehicles associated with the defendants passing through the checkpoint often within minutes of load vehicles. Additionally, the jury heard testimony regarding cellular telephone records that demonstrated contact between Perez-Barocela and the drivers in the days and weeks leading up to their arrest.
Senior U.S. District Judge John Rainey, who presided over the trial, has set sentencing for Aug. 19, 2013, at which time Perez-Barocela faces a minimum of 10 years and up to life in prison as well as a $10 million fine. He will remain in custody pending that hearing. All other co-defendants and co-conspirators are awaiting sentencing.
The case was investigated by DEA, HSI and Border Patrol. Assistant United States Attorney Jeffrey D. Preston is prosecuting the case.
Corey Moore Sentenced to over 22 Years in Prison on Federal Drug and Gun ChargesRead the Press Release
Greenbelt, Maryland - U.S. District Judge Alexander Williams, Jr. sentenced Corey Moore, age 37, of Takoma Park, Maryland, today to 271 months in prison followed by five years of supervised release for possession with intent to distribute controlled substances, specifically cocaine and phencyclidine (PCP); possession of firearms in furtherance of a drug trafficking crime; and being a felon in possession of guns and ammunition.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Alan Goldberg of the Takoma Park Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
“Corey Moore will no longer sell drugs and foment violence on the streets of Maryland and D.C.,” said U.S. Attorney Rod J. Rosenstein.
According to evidence presented at his one week bench trial, on September 25, 2010, Moore possessed with intent to distribute powder cocaine, which was recovered by Takoma Park police after a chase. In addition, on September 27, 2010, police executed a search warrant at Moore’s residence and seized one kilogram or more of PCP, which Moore intended to distribute, as well as a .44 caliber, semi-automatic pistol, a.38 caliber revolver, and six rounds of .38 caliber ammunition. Trial testimony showed that Moore possessed the guns to further his drug trafficking and that Moore was prohibited from possessing the guns and ammunition due to a previous felony conviction.
United States Attorney Rod J. Rosenstein praised ATF, the Takoma Park Police Department, Montgomery County Police Department and the Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Steven E. Swaney and Mara Zusman Greenberg, who prosecuted the case.
Coeur D'Alene Man Pleads Guilty to Possessing More Than 3,500 Images of Child PornographyRead the Press Release
COEUR D’ALENE – Brian Daniel Rowe, 28, of Coeur d’Alene, Idaho, pleaded guilty yesterday in United States District Court in Coeur d’Alene to possession of sexually explicit images of minors, U.S. Attorney Wendy J. Olson announced. Rowe was charged by indictment on January 15, 2013.
According to the plea agreement, Rowe admitted that in July 2012, he possessed a computer and a smart phone that contained more than 3,500 sexually explicit images of minors. When Rowe was interviewed by investigators, he admitted that he had been downloading sexually explicit images of minors for years.
Authorities were alerted to Rowe’s illegal behavior earlier in 2012, when they received information that Rowe was making child pornography available to others on an Internet peer-to-peer network. Following an investigation, investigators executed a search warrant at Rowe’s residence and seized computers and his smart phone.
The charge of possessing sexually explicit images of minors is punishable by up to 10 years in prison, a maximum fine of $250,000, and a minimum term of five years up to lifetime supervised release. The government is seeking forfeiture of the computer equipment used in the offense.
Sentencing is set is set for August 19, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene.
“Those who victimize children by possessing and distributing images of children being sexually abused will be identified, investigated and prosecuted,” said Olson. “Today’s guilty plea sends the strong message that law enforcement throughout Idaho will work in an efficient and coordinated manner to bring these predators to justice.”
The case was investigated by the Idaho Attorney General’s Office, Meridian Police Department, Coeur d’Alene Police Department, Nampa Police Department, Kootenai County Prosecutor’s Office, Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and United States Secret Service. The agencies are members of the Idaho Internet Crimes Against Children (ICAC) Task Force, a statewide coalition of local, state and federal law enforcement and prosecution agencies focused on apprehending and prosecuting individuals who use the Internet to criminally exploit children. For more information about the Idaho ICAC Task Force and a list of participating agencies, visit www.icacidaho.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Clearwater Man Sentenced to Eight Years for Stolen Identity Refund FraudRead the Press Release
Tampa, Florida - U.S. District Judge James D. Whittemore sentenced Carlos Johnson yesterday to eight years in federal prison for wire fraud and aggravated identity theft. As part of his sentence, the court also entered a money judgment in the amount of $431,625.00, the proceeds of the offenses. Johnson was also ordered to forfeit a Cadillac and a Dodge Charger that were purchased with the fraud proceeds. Johnson pleaded guilty on February 26, 2013.
According to court documents, Johnson engaged in stolen identity tax refund fraud from as early as July 2011 through October 2012. More than 170 fraudulent tax returns were electronically filed from his residence during this period. Johnson was also tied to additional returns based on his use of debit cards containing fraudulently obtained tax refunds. Johnson used the fraudulently obtained money from the U.S. Treasury for cars and travel, including a Cadillac CTS and a stay at the Bellagio Hotel in Las Vegas, Nevada.
This case was investigated by the Internal Revenue Service Criminal Investigation, and the Clearwater Police Department. It was prosecuted by Assistant United States Attorney Sara C. Sweeney.
Chicago Man Sentenced to 23 Years in Prison for Attempted Bombing on Crowded Street Near Wrigley Field in September 2010Read the Press Release
CHICAGO — A Chicago man was sentenced today to 23 years in federal prison for placing a backpack that he thought contained a powerful explosive device into a curbside trash container on a crowded street near Wrigley Field in September 2010. The defendant, SAMI SAMIR HASSOUN, pleaded guilty in April 2012 to one count each of attempted use of a weapon of mass destruction and attempted use of an explosive device, and faced between 20 and 30 years in prison under the terms of his plea agreement.
Hassoun, 25, a Lebanese citizen and permanent resident alien who formerly resided on the city’s north side, has remained in federal custody since he was arrested during the very early morning on Sept. 19, 2010. The purported bomb was actually an inert device that was provided by undercover FBI agents, who were investigating and monitoring Hassoun’s proclaimed determination to commit acts of violence in Chicago for monetary gain and to cause local political instability.
“The thought of what might have happened if it was real is horrific,” said U.S. District Judge Robert Gettleman, who ordered Hassoun placed on five years of supervised release following his prison term and noted that he will be subject to deportation when he is released.
As a result of the undercover investigation, Hassoun never posed any actual imminent danger, but his guilty plea made clear that he intended to cause mass casualties and had rejected opportunities to walk away from the plot. He chose the particular location and time of the proposed attack – the 3500 block of North Clark Street and late on a Saturday night – because it presented the opportunity to inflict a greater number of casualties. There was a concert at Wrigley Field on Saturday night, Sept. 18, 2010, just before he was arrested.
“If the bag that Hassoun left in that Clark Street trash receptacle had contained the type of explosive device that he thought it did, the results would have been horrific,” said Gary S. Shapiro, United States Attorney for the Northern District of Illinois. “In conversation after conversation, Hassoun made clear that he was willing to bomb innocents and shoot police officers as part of a bizarre effort to destabilize the City of Chicago. And his actions demonstrated that his words were more than empty bravado,” Mr. Shapiro said.
“I am proud of the work done by a talented investigative team in preventing Hassoun from carrying out his intended act of great violence. I am also grateful to the dedicated prosecution team for their role in bringing Hassoun to justice. We remain vigilant in our mission to prevent attacks against Americans and to identify and hold accountable individuals and groups involved in the planning and execution of such attacks,” said Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The investigation was conducted by the Chicago FBI’s Joint Terrorism Task Force, which consists of FBI special agents, Chicago police officers, and other federal, state and local law enforcement agencies.
In pleading guilty, Hassoun admitted telling a law enforcement cooperating source (CS) in early June 2010 that he wanted to commit acts of violence in Chicago and suggested bombing the commercial area surrounding Wrigley Field as one option. Hassoun said that an attack against such an entertainment center could “paralyze” Chicago commerce. The CS told Hassoun that he/she had friends willing to help Hassoun to perpetrate such an attack. Hassoun and the CS continued to discuss Hassoun’s terrorist attack ideas during the following weeks, and Hassoun indicated that he wanted to meet the CS’s contacts and was anxious to act against Chicago.
On July 8, 2010, the CS introduced Hassoun to an undercover FBI task force officer posing as one of the CS’s purported contacts, and Hassoun said that he believed that a series of escalating violent acts could be used to undermine the city’s political establishment. When asked what he was personally willing to do, Hassoun indicated that he was willing to facilitate a car bombing or attacks against Chicago police officers. When asked later if he was concerned about the victims of such violence, Hassoun said that casualties were the inevitable result of what he termed “revolution.”
On July 21, 2010, an undercover FBI agent was introduced to Hassoun as a “good friend” and “brother,” and Hassoun discussed his idea of a series of escalating violent attacks to damage Chicago’s sense of security, its economy, and trust in leadership. He identified Chicago entertainment establishments, civic buildings, commercial high-rises, and transportation infrastructure as potential targets, the plea agreement states.
During this meeting, the undercover agents gave Hassoun a digital camcorder to videotape potential targets. Hassoun traveled to the area around Wrigley Field and filmed potential targets on Aug. 8, 12 and 14, 2010, focusing on the bars, restaurants and potential security in the area. As he filmed, Hassoun commented on the potential tactical advantages and risks of perpetrating an attack at the various locations he observed. Also during the July 21 meeting, Hassoun asked the undercover agents effectively to employ him planning the bombing, and from July 21 to Sept. 18, 2010, they paid Hassoun $2,700.
On Aug. 16, 2010, Hassoun met with the agents and debriefed them on his reconnaissance efforts. He gave them the camcorder and after reviewing the videos, they all discussed the areas that could be targeted to cause maximum casualties with minimum operational difficulty and risk. On Aug. 31, 2010, Hassoun and the undercover agents traveled to Hassoun’s chosen location, which Hassoun said would be crowded with bar patrons.
At a prearranged meeting on the night of Sept. 18, 2010, at a hotel in Rosemont, the undercover agents provided Hassoun with a shopping bag and a backpack that contained the purported bomb. While driving together to the target area, one of the agents explained to Hassoun that the bomb was surrounded by ball-bearings and that its blast could destroy up to half a city block. As they approached the area, one of the agents told Hassoun that he was setting the bomb’s timer for 20 minutes, but Hassoun said that was too long. The agent and Hassoun then set the timer together and activated the purported bomb’s arming mechanism in Hassoun’s presence. They arrived near the target location at approximately 12:10 a.m. on Sunday Sept. 19 and parked about a block away. As planned, Hassoun exited the vehicle with the shopping bag containing the backpack and purported explosive device, walked a short distance, and deposited what he thought was the armed bomb into the trash container on the crowded sidewalk.
The government was represented by Assistant U.S. Attorneys Joel Hammerman and Tinos Diamantatos.
Charleston Man Pleads Guilty for Violating Sex Offender Registration LawsRead the Press Release
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin today announced that a Charleston man pleaded guilty in federal court for failing to register as a sex offender as required by the Sex Offender Registration and Notification Act (“SORNA”). Samuel Bailey Jr., 52, of Charleston, pleaded guilty in federal court in Charleston.
On February 5, 1979, Bailey was convicted in the Supreme Court, Monroe County, New York, of first degree rape. As a result of this sex offense conviction, Bailey was required to register as a sex offender for life.
Bailey registered as a sex offender in West Virginia on July 13, 2011. An investigation revealed that in September 2012, Bailey traveled from West Virginia to Ohio, where he resided in and around Columbus, Franklin County, Ohio until March of 2013. Following his travel to Ohio, Bailey was required to update his sex offender registration under SORNA. Bailey failed to register as a sex offender in Ohio for the six months he resided there. The defendant also failed to update his sex offender status in West Virginia.
Bailey faces up to 10 years in prison and a $250,000 fine when he is sentenced on September 12, 2013 by United States District Judge Thomas E. Johnston.
The United States Marshals Service conducted the investigation. The West Virginia State Police and the City of Columbus Police Department also assisted the investigation. Assistant United States Attorney Erik S. Goes is in charge of the prosecution.
This case is being brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
The Sex Offender Registration and Notification Act which is Title I of the Adam Walsh Child Protection and Safety Act of 2006 (Public Law 109-248). SORNA provides a comprehensive set of minimum standards for sex offender registration and notification in the United States.
Carbon County Woman Sentenced to Prison for Federal Cocaine Trafficking ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Carbon County woman was sentenced today by Senior United States District Judge Edwin M. Kosik to serve 60 months in prison on the charge of conspiracy to distribute cocaine.
According to United States Attorney Peter J. Smith, Bonnie Vosburgh, age 23, of Nesquehoning, Carbon County, previously admitted to participating in a conspiracy to distribute crack cocaine and powder cocaine in the Carbon County area between January of 2011 and December of 2012.
In addition to the prison term, Senior Judge Kosik also ordered that Vosburgh be supervised by a probation officer for four years following her prison sentence.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Nesquehoning and Lansford Police Departments in Carbon County.
The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.
Cannonball Woman Sentenced for Assault with a Dangerous WeaponRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on May 30, 2013, Maureen Red Stone, 30, Cannonball, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of assault with a dangerous weapon. Red Stone pleaded guilty to the charge on Dec. 18, 2012.
Judge Hovland sentenced Red Stone to two years in federal prison, to be followed by three years of supervised release. Red Stone was ordered to pay a $100 special assessment to the Crime Victim’s Fund and $2,008.58 in restitution.
On Sept. 29, 2012, Red Stone got into an argument with a man. Red Stone entered her van and drove toward the man and struck him with the front of the van. The man’s injuries were not life threatening.
The case was investigated by the Bureau of Indian Affairs – Standing Rock Agency, with the assistance of the Standing Rock Tribal Prosecutor’s Office.
Assistant U.S. Attorney Gary Delorme prosecuted the case.
California Man Sentenced on Drug Conspiracy ChargesRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Benito Ruiz-Landa, 48, of Hesperia, California, who was convicted of conspiracy to distribute cocaine, was sentenced to 60 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who handled the case, stated that between January 2008 and June 2010, the defendant along with co-conspirator Miguel Robles-Diaz, while living in California, received shipments of cocaine from Mexico. The two defendants then distributed the cocaine throughout the United States, including the Buffalo area. Ruiz-Landa was arrested in New York City in June 2010 following a wiretap operation which recorded a conversation involving the defendant and the sale of a kilogram of cocaine.
Miguel Robles-Diaz pleaded guilty to a similar charge and was sentenced to 33 months in prison in April 2013.
Following the completion of his federal sentence and after a state charge in New York City is resolved, Ruiz-Landa will be deported back to his native country of Mexico.
The sentencing was the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Region.
Buffalo Man Sentenced for Possession of Child PornographyRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Kevin Baron, 43, of Buffalo, N.Y., who was convicted of possession of child pornography, was sentenced to 168 months in prison and 10 years of supervised release by U.S. District Court Judge Richard J. Arcara.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that on March 9, 2012, the defendant possessed images of child pornography on his personal computer and on DVDs. A forensic analysis of the computer and disks revealed in excess of 600 images of child pornography. The analysis also revealed that a privacy and cleaning software had been installed and was run on February 18, 2012 and February 28, 2012. Some of the images contained depictions of violence against children.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel, along with Officers of the Cheektowaga Police Department, under the direction of Police Chief David Zack and Buffalo Police Department, under the direction of Commissioner Daniel Derenda. Additional assistance was provided by the Western New York Regional Computer Forensics Laboratory, which conducted the forensic analysis of the computer.British National Pleads Guilty to a Customs ViolationRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Gary Hyde, 44, of York, England, pleaded guilty to a charge of removing and altering country of origin markings on imported articles and was sentenced to time served by U.S. District Judge Charles J. Siragusa. Hyde, who is currently serving a sentence of seven years in prison in England for his involvement in a separate illegal arms transaction, appeared through his attorney.
Assistant U.S. Attorney Bret A. Puscheck, who handled the case, stated that the defendant jointly owned, along with German national Karl Kleber, Jago Ltd., a company based in Great Britain that buys and sells arms. In 2007, the defendants obtained approximately 6,000 75 round capacity AK-47, rifle drum magazines from a Chinese arms manufacturer that were to be produced with no Chinese markings on the magazines or their containers. In March 2008, while Karl Kleber had sole physical custody of these Chinese-manufactured gun magazines in Germany, Kleber agreed to sell the drum magazines to American Tactical Imports, Inc. (“ATI”), of Rochester, an arms and munitions wholesale distributor.
In August 2008, 5,760 of these Chinese-manufactured, 75 round capacity, AK-47 rifle drum magazines bearing no Chinese country of origin marks were shipped from Germany by Kleber to ATI. Prior to shipping the defendants agreed to the arrangements for sending the drum magazines to ATI for resale while both were aware that Chinese-manufactured drum magazines could not be imported into the United States. In September 2008, the drum magazines were imported into the United States and delivered to ATI in Rochester.
In February 2011, Karl Kleber was convicted of smuggling goods into the United States and is awaiting sentencing.
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 Special Agent in Charge, James C. Spero, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Scott Heagney.
A third defendant, Paul Restorick, was also arrested in this case and the charges against him are pending.Bridgeport Man Charged with Delivering Hand Grenade Concealed in Coffee Cup to Bridgeport PoliceRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the FBI, and Bridgeport Police Chief Joseph L. Gaudett, Jr., announced that MORRIS A. ROBERTS, 42, of Bridgeport, was arrested today on a federal criminal complaint charging him with delivering a modified hand grenade concealed in a coffee cup to the Bridgeport Police Department in February.
ROBERTS was arrested this morning at his residence. He appeared before United Magistrate Judge William I. Garfinkel and has been ordered detained.
As alleged in the criminal complaint, in the morning of February 27, 2013, outside of the Bridgeport City Hall annex located at 999 Broad Street, ROBERTS handed a paper coffee cup to a witness and asked the witness to deliver the coffee cup to Bridgeport Police Department’s Office of Internal Affairs (OIA). The witness subsequently delivered the cup. When a police officer assigned to OIA looked in the cup, the officer discovered a modified hand grenade and notified the Emergency Operations Center. Law enforcement officers, including the Connecticut State Police Emergency Service Unit, responded to the scene, the building was evacuated and the grenade was safely removed.
Subsequent examination of the grenade determined that it would not have detonated due to its poor construction. However, explosive black powder, which is not normally present in the type of device found, had been added to the grenade.
The investigation has included analysis of several videos recorded on the morning of February 27 in the area of 999 Broad Street.
The criminal complaint charges ROBERTS with possession of an explosive by a previously convicted felon, and with making a threat or conveying false information concerning an attempt to kill, injure or intimidate a person or unlawfully damage any building by means of an explosive. Each charge carries a maximum term of imprisonment of 10 years.
Acting U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force, the Bridgeport Police Department and the Connecticut State Police. The FBI’s JTTF includes participants from the Department of Homeland Security, Homeland Security Investigations, Internal Revenue Service – Criminal Investigation, Naval Criminal Investigative Service, Connecticut State Police, Bridgeport Police Department, Norwich Police Department and the New York Police Department.
This case is being prosecuted by Assistant United States Attorney Anastasia E. King.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Baltimore Man Exiled to 9 Years in Prison for A Series of Armed Commercial RobberiesRead the Press Release
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Monzell Lee, age 20, of Baltimore, Maryland, today to nine years in prison followed by five years of supervised release for interference with commerce by robbery and possession of a gun in furtherance of a crime of violence. Judge Hollander also ordered Lee to pay restitution to the victims totaling $1,937.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to Lee’s plea agreement, between May 28 and June 11, 2012, Lee participated in four robberies of convenience stores and fast food restaurants in the Baltimore area. In each robbery Lee entered the store with a co-conspirator, who was armed. The co-conspirator brandished the gun at the store employees and Lee and the co-conspirator took cash from the register. A third conspirator, Rico Bias, then drove Lee and the other conspirator away from the scene of each robbery.
Specifically, Lee robbed: the Burger King in the 8300 block of Harford Road in Baltimore on May 28, 2012; the Royal Farms Store in the 1900 block of Belair Road and the Royal Farms Store in the 900 block of West 36th Street, both in Baltimore, on May 29, 2012; and the Wendy’s Restaurant in the 3600 block of Washington Boulevard in Elkridge on June 11, 2012.
Bias, age 34, also of Baltimore, previously pleaded guilty to conspiring to commit a commercial robbery and the gun charge and is scheduled to be sentenced on June 21, 2013 at 11:30 a.m.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney's Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney A. David Copperthite, who prosecuted the case.
Athaliah Venus Allison Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on May 30, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, ATHALIAH VENUS ALLISON, a 36-year-old resident of Belgrade, pled guilty to (2) counts of wire fraud and (1) count of aggravated identity theft. Sentencing has been set for September 13, 2013. She is currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Timothy J. Racicot, the government stated it would have proved at trial the following:
ALLISON was the bookkeeper for Big Sky Asphalt in Bozeman from the summer of 2008 through the summer of 2012. Her work was predominantly seasonal and there were periods of time when she was employed essentially 40 hours per week and other periods where she was employed fewer than 40 hours per week, if at all.
In approximately July 2008, ALLISON began embezzling from the company by writing and signing unauthorized company checks to herself and to other entities and making unauthorized credit card purchases using the US Bank company credit card. The loss to Big Sky Asphalt is approximately $318,166.04 ($68,503.81 in check fraud and $249,662.23 in credit card fraud).
The owners of Big Sky Asphalt found out about the embezzlement when ALLISON confessed around Labor Day 2012 that she had used the company credit card to pay for her husband's substance abuse treatment in Billings. ALLISON was very upset and agreed to pay back the $6,700 charge. Later that same week, ALLISON called the wife of one of the owners of Big Sky Asphalt and told her that the credit card was due and the balance was $3,426. The owner's wife called US Bank directly to pay over the phone and was informed that the balance was $10,777, so she went to ALLISON's house to get the statement and noticed that it said $3,426. Based on the discrepancy, the owner's wife ordered transaction histories for the US Bank account dating back to December 2008.
The owner's wife audited the credit card statements and discovered $249,662.23 in unauthorized purchases, including $39,544.11 to Blanchford Landscaping. Additional investigation revealed that ALLISON approached the owner of Blanchford Landscaping, for whom she also worked as bookkeeper, in approximately July 2011 and offered to pay the company's bills with a low-interest, high-limit credit account, which turned out to be Big Sky Asphalt's US Bank credit card.
ALLISON also wrote checks to herself on Big Sky Asphalt's bank account totaling $193,303.81. Even a generous estimate of her actual wages reveals an overpayment of $68,503.81, yielding an approximate total loss amount of $318,166.04 for both the credit card and check fraud. The checks that ALLISON wrote to herself were often for "reimbursable expenses." The checks also required the signatures of both of the owners of Big Sky Asphalt (J.S. and D.S.), which ALLISON forged. The forgery on October 22, 2008, in connection with ALLISON's negotiation of check number 27462, forms the basis of the identity theft charge in Count III of the Information.
ALLISON changed the address for the US Bank statements without permission, rerouting them to her personal residence. She also had the various accounts combined into one monthly summary. Once she controlled the statements she altered them by digitally removing the unauthorized charges and adding those amounts onto authorized expenditures for purchases made by Big Sky Asphalt's owners. She then removed her personal address from the bill, replaced it with the company address, and made the statements available to the owners for their review.
ALLISON used Big Sky Asphalt's credit card to pay Blanchford Landscaping's bills and then reimbursed herself from Blanchford's checking account. It appears that she charged $39,544.11 in Blanchford bills to the Big Sky Asphalt card.
ALLISON also opened a Staples Citibank account in 2008 in Big Sky Asphalt's name and charged $1,311.90 in expenses to places such as Macy's, Nordstrom, Aeropostale, American Eagle, Babies 'R Us, and Kohl's.
From May 2009 through April 2012, during the same time period that she was embezzling from Big Sky Asphalt, ALLISON was also receiving unemployment benefits from the State of Montana. In June 2009, ALLISON reported to the State that she worked four hours and made $66. That same month, Big Sky Asphalt paid ALLISON $1,072 in wages for 80 hours of work. In August 2009, she reported 12 hours and $180 to the State, but made $2,278 working 181 hours (including overtime) for Big Sky Asphalt.
ALLISON faces possible penalties of 20 years in prison, a $250,000 fine and 3 years supervised release for each count of wire fraud and 3 years in prison, a $250,000 fine and 3 years supervised release for aggravated identity theft.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the Bozeman Police Department.
Arkansas Woman Indicted for Defrauding Monterey Bay Aquarium Research InstituteRead the Press Release
SAN JOSE – Yesterday, a federal grand jury in San Jose, California, indicted Lisa McMahon, of Mountain View, Arkansas with wire fraud and theft from the Monterey Bay Aquarium Research Institute (MBARI), United States Attorney Melinda Haag announced.
MBARI is a non-profit center for advanced research and education in ocean science and technology located in Moss Landing, California, and supported in part by federal funding. According to the indictment, McMahon was employed at MBARI as a payroll specialist with responsibilities concerning the payment of wages, 401(k) contributions and loans for MBARI employees. The indictment alleges that, from at least 2005 until January of 2012, McMahon devised and executed a scheme to defraud MBARI by altering payroll and 401(k) records to cause and conceal fraudulent payments to her personal accounts. According to the indictment, McMahon caused the transfer of approximately $800,000 of MBARI funds to her personal accounts without the authorization or knowledge of her employer.
McMahon’s initial appearance is scheduled for Thursday, June 6, 2013, at 10:30 am, in front of The Honorable Paul S. Grewal, U.S. Magistrate Judge, in San Jose, California.
The maximum statutory penalty for each count of wire fraud in violation of Title 18, United States Code, section 1343, is twenty years imprisonment and a fine up to twice the pecuniary gain or loss associated with the offense, plus restitution. The maximum statutory penalty for each count of theft from a federal program in violation of Title 18, United States Code, section 666, is ten years imprisonment and a fine up to twice the pecuniary gain or loss associated with the offense, plus restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Philip A. Guentert is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Elise Etter. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Please note, an indictment contains only allegations against an individual and, as with all defendants, McMahon must be presumed innocent unless and until proven guilty.
Amarillo Women Sentenced to Lengthy Federal Prison Sentences for Running Methamphetamine Distribution ConspiracyRead the Press Release
Law Enforcement Discovered More Than 33 Kilograms of Meth in Vehicle
AMARILLO, Texas — Today, Delmy Nohemy Hernandez, 36, aka Delmy Nohemy Pena De Hernandez, was sentenced by U.S. District Judge Mary Lou Robinson to 133 months in federal prison following her guilty plea in March 2013 to one count of conspiracy to possess with intent to distribute methamphetamine. Yesterday, codefendant Lilia Rivera, aka Lilia Rivera-Martinez, 44, was sentenced by Judge Robinson to 97 months in federal prison. Rivera pleaded guilty to the same offense. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Rivera was introduced to Hernandez in October 2012 by a mutual friend. Hernandez offered Rivera an opportunity to transport controlled substances. That same month, they began making plans to transport controlled substances by vehicle for a male acquaintance. The controlled substances would be concealed in the vehicle and the women would be paid for transporting it.
In December 2012, Rivera and Hernandez, both residents of Amarillo, went to the Potter County tax office and registered a vehicle in Rivera’s name. The vehicle, a SUV, had been purchased by the male acquaintance who gave them cash to pay for the SUV’s registration, even though he maintained possession of it.
On December 18, 2012, the male acquaintance advised Hernandez and Rivera that they would be making a trip in the SUV to transport a controlled substance. Rivera was to be paid for transporting the substance and Rivera told Hernandez that she would give her some of the money.
On December 20, 2012, Rivera and Hernandez were stopped by law enforcement on U.S. 287 in Carson County, as they were headed to Houston, knowing that they were transporting a controlled substance. During that traffic stop, law enforcement asked the vehicle’s driver, Rivera, for consent to search the vehicle. Subsequently law enforcement discovered 33.6 kilograms of methamphetamine secreted in the vehicle. Rivera and Hernandez were arrested and have been in custody since that time.
The case was investigated by the Drug Enforcement Administration, the Texas Department of Public Safety, the Armstrong and Carson County Sheriff’s Offices and the Amarillo Police Department. Assistant U.S. Attorney Vicki Lamberson was in charge of the prosecution.
Alabama Woman Pleads Guilty in Stolen Identity Refund Fraud SchemeRead the Press Release
Lea’Tice Phillips, of Montgomery County, Ala., pleaded guilty today to one count of wire fraud and one count of aggravated identity theft for her role in a stolen identity refund fraud scheme, the Justice Department and the Internal Revenue Service (IRS) announced today.
According to the court documents, Phillips worked for an Alabama state agency and had access to state databases which contained means of identification of individuals. Between October 2009 and April 2012, Phillips conspired with Antoinette Djonret and others to file false tax returns using stolen identities. On multiple occasions, Phillips accessed a state database to obtain means of identification and used her state email to send means of identification to Djonret. Djonret and others used those means of identification to file false tax returns mostly from Djonret’s residence in Montgomery, Ala. Djonret and her co-conspirators used an elaborate network of individuals to launder the tax refunds. They recruited individuals to purchase prepaid debit cards and to provide the cards to them. Fraudulently obtained tax refunds were directed to the prepaid debit cards that Djonret and her co-conspirators used to obtain the proceeds. Some of the prepaid debit cards were in the name of Phillips. In total, Djonret filed over 1,000 false tax returns that claimed over $1.7 million in fraudulent tax refunds.
The sentencing of Phillips has not yet been scheduled. Phillips faces between two and 22 years in prison, three years of supervised release, restitution, and a maximum fine of $750,000, or twice the loss caused by the offense. Djonret was previously sentenced to 144 months in prison.
The case was investigated by the IRS - Criminal Investigation. Trial Attorneys Jason H. Poole and Michael Boteler of the Justice Department’s Tax Division and Assistant U.S. Attorney for the Middle District of Alabama Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Alabama Employee Pleads Guilty to Providing Names for A Million Dollar Identity Theft SchemeRead the Press Release
Montgomery, Alabama - On May 30, 2013, Lea’Tice Phillips pleaded guilty to one count of wire fraud and one count of aggravated identity theft for her role in a stolen identity refund fraud scheme, announced United States Attorney George L. Beck, Jr.
According to the court documents, Lea’Tice Phillips worked for an Alabama State agency and had access to state databases which contained means of identification of individuals. Between October 2009 and April 2012, Lea’Tice Phillips conspired with Antoinette Djonret and others to file false tax returns using stolen identities. On multiple occasions, Phillips accessed a state database to obtain means of identification. Phillips used her state email to send means of identification to Djonret. Djonret and others used those means of identification to file false tax returns. Djonret and her co-conspirators filed most of the tax returns from her residence in Montgomery, Alabama. Djonret and her co-conspirators used an elaborate network of individuals to launder the tax refunds. The Defendants recruited individuals to purchase prepaid debit cards and to provide the cards to the Defendant and her co-conspirators. The fraudulent tax refunds were directed to the prepaid debit cards. Djonret and her co-conspirators would then use the prepaid debit cards to obtain the proceeds. Some of the prepaid debit cards were in the name of Lea’Tice Phillips. In total, Djonret filed over 1,000 false tax returns that claimed over $1.7 million in fraudulent tax refunds.
Sentencing has not yet been scheduled. Phillips faces between two and twenty-two years in prison, three years of supervised release, restitution, and a maximum fine of $750,000, or twice the loss caused by the offense. Djonret was previously sentenced to 144 months in prison.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial attorneys Jason H. Poole and Michael Boteler of the Justice Department’s Tax Division and Assistant United States Attorney Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Abbeville Drug Distribution Conspirator SentencedRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced that Jose Manuel Mojica-Echeverria, 27, of Mexico, was sentenced Wednesday before U.S. District Judge Richard T. Haik to 24 months in prison plus three years supervised release for conspiracy to possess with intent to distribute controlled substances.
According to evidence presented at the guilty plea, Mojica-Echeverria and Ramon Guadalupe Aldama-Rodriguez, who were residing in Lafayette, conspired with two residents of Abbeville, Jesus Silverio Cervantes and Joel Sotomayor Cervantes, on June 13, 2010, to drive a truck loaded with 2 kilograms of cocaine and 360 grams of heroin to Baton Rouge. Aldama-Rodriguez drove the truck, and Mojica-Echeverria rode with him, while Jesus Silverio Cervantes and Joel Sotomayor Cervantes followed in another vehicle. Authorities stopped the truck during a traffic stop. Mojica-Echeverria pleaded guilty on Dec. 17, 2012.
“The successful prosecution of this case is a result local, state, and federal law enforcement agencies working together with our prosecutors to bring drug traffickers to justice,” Finley stated. “These defendants’ attempt to smuggle kilos of cocaine and heroin into the Acadiana region was foiled because of the hard work and dedication of the agencies involved and their commitment to keeping our community safe.”
Mojica-Echeverria was arrested as part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The DEA, the Baton Rouge Police Department and the Vermillion Parish Sheriff’s Office participated in this OCDETF investigation.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Assistant U.S. Attorney Brett L. Grayson prosecuted the case.29 Years in Prison for Springfield Man Serving Second Federal Sentence for Cocaine DistributionRead the Press Release
Springfield, Ill. – Senior U.S. District Judge Richard Mills last week sentenced Patrick B. Wallace, 44, of Springfield, Ill., to 288 months (24 years) in prison for dealing crack cocaine in late 2011, to be followed by a consecutive 60 months (5 years) sentence for revocation of supervised release. At the time of the 2011 offense, Wallace remained under supervised release for a prior federal conviction, in 1994, for conspiracy to distribute cocaine.
A jury convicted Wallace on Oct. 16, 2012, for possession with intent to distribute 28 or more grams of crack cocaine in Springfield, Ill., in December 2011. At trial, the government presented evidence that Wallace was responsible for distribution of substantial quantities of mostly crack cocaine in Springfield. Evidence was also presented that during execution of a search warrant at a home in the 700 block of N. 14th Street, officers found that the home was equipped with a large privacy fence and an alarm system with outside surveillance cameras. Inside the home, a 73” flat screen television screen monitored the surveillance cameras. Officers also recovered one-half kilogram (more than 500 grams) of cocaine and crack, and marijuana, as well as a handgun and $4,300.
In 1994, Wallace was sentenced to 200 months (16 years, 8 months) in federal prison, to be followed by 10 years of supervised release, after pleading guilty in the Central District of Illinois to conspiracy to distribute cocaine. Wallace was released from the Bureau of Prisons in July 2008, and remained under supervised release when he was charged in the second case.
The investigation was conducted by the Springfield Police Department and the Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Attorney Timothy A. Bass.12 Individuals Indicted for CarjackingRead the Press Release
SAN JUAN, P.R. – On May 22, 2013, a federal grand jury in the District of Puerto Rico returned multiple indictments against 12 defendants charged with carjacking and firearms offenses, announced today Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. This is the second largest carjacking arrest operation in the District of Puerto Rico. The accusations are the result of a joint effort between the United States Attorney’s Office (USAO), the Puerto Rico Department of Justice, the Federal Bureau of Investigation’s Save Our Streets Initiative (SOS) and the Puerto Rico Police Department (PRPD).
The defendants are: José Canales-Cordova; Wilfredo Jiménez-Torres; Gadiel Lozada-Manzano; Guarionex Pratts Rey; Miguel A. Sànchez-Rivera; Josué E. Aponte-Ramos; Victor J. Romàn Lizardi; Miguel A. Fernàndez-Torres; Luis R. Figueroa-Chévere; and Christopher Pérez-Pontón. These defendants are responsible for many violent crimes within our District, and had committed offenses which until now remained unsolved. Other defendants who allegedly committed the same offenses of carjacking and firearm violations are: Kedwin Rodríguez-Rivera; Roberto Rohena-Villega and Ricardo Urbina-Robles. These individuals were previously indicted in separate accusations.
The SOS agents and the prosecutors in USAO’s Illegal Firearms and Violent Crime Reduction Initiative have filed criminal charges against more than 123 violent offenders for violations to Title 18, United States Code, Section 2119. With these latest charges, the prosecutors in the USAO’s Illegal Firearms and Violent Crime Reduction Initiative have charged approximately 770 violent offenders within the last six months.
“The investigations by the SOS team of FBI special agents and designated PRPD officers will continue into similar crimes in other areas of Puerto Rico,” said US Attorney Rosa Emilia Rodríguez-Vélez. “The collaboration and team work between state and federal law enforcement agencies in the investigation and prompt filing of charges show the immediate results we continue to obtain with this joint initiative.”
“Violent Crimes is one of the priorities for the FBI in San Juan and we'll continue aggressively pursuing it, in partnership with local law enforcement agencies and the United States Attorney’s Office,” said Carlos Cases, Special Agent in Charge of the FBI-San Juan Field Office.
The cases are being prosecuted by Special Assistant U.S. Attorneys: Max Pérez-Bouret, Kelly Zenón-Matos, Amanda C. Soto-Ortega, Normary Figueroa-Rijo, and Vanessa D. Bonano-Rodríguez, under the supervision of Assistant United States Attorney Jose Capó-Iriarte, Chief of the Violent Crimes Unit. If convicted, the defendants could face sentencings from 15 years up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
10 Convicted for Violent Robberies of Area BanksRead the Press Release
HOUSTON – 10 men set for trial this week on charges related to the armed bank robberies of several area financial institutions, including one involving the shooting of an off-duty sergeant, have now been convicted, United States Attorney Kenneth Magidson announced today.
Shelton McGowen, 24, opted to plead guilty before trial was set to begin on Tuesday. During jury selection on Wednesday, seven more entered guilty pleas – Derrick Williams, 28, Marcus Rosemond Tarpley, 32, Reginald Mosley, 37, Joel Keon Jackson, 33, Hakim Ibn Ahmad, 29, Alonzo Horace Harris, 37, and Patrick Wayne Simmons, 29. The final two – Calvin Wesley Gray, 33, pleaded guilty the morning of opening statements, while Dwayne Holmes, 35, entered his guilty plea following the government’s opening remarks and with a witness about to take the stand.
All men were convicted of conspiracy to commit bank robbery, multiple bank robbery charges as well as brandishing and/or discharging a firearm during commission of a violent crime.
An 11th defendant, Anthony Demonde Nowlin, 24, had previously pleaded guilty earlier this year to bank robbery and conspiracy to interfere with commerce through bank robbery.
The government contended in its opening remarks that the defendants were part of a sophisticated criminal organization that planned and executed violent takeover style bank robberies of banks inside grocery stores. The conspiracy began on May 4, 2007, and ended with the arrest of some of the men on Sept. 16, 2011.
According to court records, the defendants would “case” banks and credit unions that were located in grocery stores, using force, violence and intimidation to rob them. During the robberies, which were committed on weekday mornings between 9:00 a.m. and noon, the defendants wore dark clothing, gloves, material over their faces and were armed with semi-automatic pistols, shotguns and Uzi style firearms to intimidate the bank employees. The men would also use stolen vehicles during the robberies to elude law enforcement.
During the Aug. 4, 2011, robbery of Wells Fargo Bank in Sugar Land, the robbers shot an off-duty sergeant with the Harris County Sheriff’s Office who was in the bank on personal business. He survived.
Tarpley, Nowlin, Ahmad, Mosley, McGowen and Williams were arrested on the morning of Sept. 16, 2011, on Interstate 45 North after several were observed both driving and going in and out of a stolen Dodge Intrepid. Officers later observed McGowen enter the Associated Credit Union for the purpose of casing it for a robbery. Law enforcement officers observed several suspicious vehicles one with paper plates near the Kroger that housed the Associated Credit Union on the day of their Sept. 16 arrest. Due to previous robberies of groceries store banks and credit unions, law enforcement had reason to believe that the defendants were about to commit an armed bank robbery.
Further investigation led to the identification of the additional five defendants involved in the scheme resulting in the federal indictment for multiple bank robberies in the greater Houston area. After the dismantling of this 11-man crew, no further violent takeover style bank robberies occurred inside of bank grocery stores.
The conspiracy charge carries as possible punishment a term of five years in federal prison as well as a $250,000 fine. For each conviction of bank robbery, the men also face as much as 20 years in prison and $250,000 fine. Use of a firearm in furtherance of a crime of violence will result in an additional minimum sentence of either seven or 10 years and up to life in prison which must be served consecutively to any other prison term imposed.
All defendants remain in custody pending sentencing. U.S. District Judge David Hittner, who presided over the trial, will set that hearing at a later date.
This matter was investigated by the FBI Bank Robbery Task Force which is comprised of personnel from the FBI, Houston Police Department and the Harris County Sheriff's Office with special assistance from the Fort Bend County Sheriff’s Office and the Baytown and Pasadena Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Suzanne Elmilady and Kebharu H. Smith.
29 May 2013
Woman Sentenced to over Four Years in Prison for Defrauding Medicare of $11 Million in Fraudulent Billing SchemeRead the Press Release
LAS VEGAS, Nev. – A woman who defrauded the Medicare program of $11.1 million in a fraudulent medical equipment billing scheme, was sentenced today to 51 months in prison, three years of supervised release, and criminal forfeiture of $11.1 million in assets, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Alegria Phankonsy, 43, formerly of Orange County, Calif., but currently in custody, was sentenced by U.S. District Judge Kent J. Dawson. Phankonsy pleaded guilty in November 2012 to one count of health care fraud and one count of tax evasion.
According to the indictment and the facts supporting the guilty plea, between about March 2005 and February 2010, Phankonsy operated several medical equipment supply companies in Las Vegas, Proforma Medical Source, Divine Health and Freemotion Plus Medical Supply. Phankonsy operated the first two companies using the alias’ Marie Villanueva and Marie Phan, respectively, and operated Freemotion using the name Phankonsy. Between about March 2005 and March 2010, Phankonsy fraudulently billed Medicare for medical equipment, such as leg prostheses and power wheelchairs that had not been ordered by a physician, were not needed by clients or were not provided to clients at all. To identify clients, Phankonsy paid “marketers” in southern California to obtain patients for her various companies. The marketers provided these clients with money in exchange for their Medicare information, which was used to bill Medicare for the unnecessary items or items not provided. The scheme resulted in Phankonsy receiving $11.1 million to which she was not entitled.
For the tax years 2006, 2007, and 2008, Phankonsy prepared and submitted false individual income tax returns by underreporting the income she earned from the Medicare fraud scheme. During those three years, Phankonsy underreported approximately $7.8 million in gross receipts, resulting in a total tax loss of approximately $2.4 million. Phankonsy also appended fraudulent W-2 forms to her returns and falsely represented that she had made significant estimated tax payments, when she had not.
The case was investigated by the Office of the Inspector General for Health and Human Services and IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Crane M. Pomerantz.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Winchester Man Pleads Guilty to 2nd Degree MurderRead the Press Release
Defendant also Admits Using a Firearm in a Crime of Violence
COEUR D’ALENE – Kenneth D. Broncheau, 48, of Winchester, Idaho, pleaded guilty today in federal court to one count of second degree murder and one count of using a firearm in a crime of violence, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Broncheau, admitted that on the evening of June 21, 2012, he intentionally shot and killed his mother, Carol Haskell, at their residence located on the Nez Perce Indian Reservation. According to the plea agreement, Broncheau fired two shots from a Savage Arms .243 rifle; the first bullet missed Haskell, the second struck her in the torso causing a mortal injury. Broncheau then retrieved a container of gasoline from a shed located on the property and returned to the residence. According to the plea agreement, Broncheau poured gasoline on the victim’s body and set it afire. A neighbor responding to the screams and gunshots, removed the rifle from Broncheau’s hands. Broncheau was taken into custody by law enforcement shortly thereafter and has remained in custody since that time.
Count one, second degree murder, is punishable by up to life in prison, a maximum fine of $250,000, and up to five years of supervised release. Count two, using a firearm in a crime of violence, carries a mandatory minimum term of 10 years in prison, consecutive to the sentence imposed in count one.
Sentencing is set for August 19, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene.
“Today’s plea is a significant step in addressing violence against women in Indian Country,” said Olson. “Sadly, this defendant intentionally took his mother’s life. Although his guilty plea cannot fill the void left by his mother’s death, it should send a strong message that federal, state, tribal and Lewis County law enforcement agencies are working cooperatively to investigate and prosecute violent crime on the Nez Perce Reservation.”
The case was investigated by the Federal Bureau of Investigation, Nez Perce Tribal Police, Idaho State Police, and the Lewis County Sheriff’s Office.