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Monday 15 April 2013
Nearly 22 Years in Prison for Woman Who Produced Child Porn Images for Rent MoneyRead the Press Release
Springfield, Ill. – U.S. District Judge Sue E. Myerscough today sentenced Laura J. Sigler, 26, to serve 262 months (21 years, 10 months) in federal prison and to remain on supervised release for life following her release from prison. Sigler has been detained in the custody of the U.S. Marshals Service since her arrest in March 2012, along with co-defendant Anthony L. Ferguson, 25.
On Dec. 6, 2012, Sigler pled guilty to using a five-year-old child to produce child pornography in November 2011, when Sigler and Ferguson were living at the Budget Inn in Lincoln, Ill. According to court documents, Ferguson and Sigler used the images of child pornography to secure rent money. Ferguson pled guilty to the offense in July 2012, and was sentenced in January 2013, to a term of 235 months (19 years, 7 months) in prison.
Sigler and Ferguson were each ordered to remain on supervised release for life following completion of their respective prison terms.
The case was investigated by ICE’s Homeland Security Investigations and the Lincoln Police Department. Assistant U.S. Attorney Timothy A. Bass prosecuted the case on behalf of the government.
The case was prosecuted under 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 U.S. 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.
Nacogdoches County Felon Sentenced for Federal Firearms ViolationsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas - A 31-year-old Nacogdoches, Texas man has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Lincoln Jerome Watts pleaded guilty on Nov. 19, 2012, to being a felon in possession of a firearm and was sentenced to 90 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, on Nov. 13, 2011, law enforcement authorities responding to a report of a disturbance involving a weapon encountered Watts in the 100 block of Zula Street in Nacogdoches, Texas. Watts consented to a search and was arrested after an officer discovered a loaded pistol in Watts’ front pants pocket. Further investigation revealed Watts was a convicted felon having been found guilty of aggravated robbery in Nacogdoches County; possession of a firearm while under indictment in the Eastern District of Texas; possession of a stolen firearm in the Eastern District of Texas; and burglary of a federal firearms licensee in the Eastern District of Texas, all in 2001. Federal law prohibits a convicted felon from owning or possessing firearms or ammunition. Watts was indicted by a federal grand jury on Oct. 3, 2012.
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Nacogdoches Police Department and prosecuted by Assistant U.S. Attorney Joseph R. Batte.Murphysboro Man Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
On April 11, 2013, David A. Shockley, 36, of Murphysboro, IL, pled guilty in United States District Court in Benton to an indictment charging conspiracy to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
The offense occurred between January 2011, and January 2013, in Perry, Jackson, and Randolph Counties. Evidence at the plea hearing established that Shockley was involved with others in the manufacture of methamphetamine. Shockley obtained pseudoephedrine for use during the manufacture methamphetamine and was also involved in the methamphetamine cooks.
Shockley is currently being held without bond pending an August 15, 2013, sentencing hearing. At that time, Shockley faces up to 20 years’ imprisonment, 3 years’ supervised release, and a fine of up to $1,000,000. Six co-defendants have previously pled guilty to the methamphetamine charge and are awaiting sentencing.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Randolph County Sheriff’s Office, Perry County Sheriff’s Office, Percy Police Department, Murphysboro Police Department, Sparta Police Department, and Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Miami Woman Convicted in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), Tom Caul, Acting Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG), and Steven Steinberg, Chief, Aventura Police Department, announced today the conviction at trial of Natoya Mashea Handy, 30, of Miami, for her participation in a tax refund scheme using stolen identities to convert government monies for her own use. More specifically, on Friday, April 12, 2013, Handy was convicted by a jury of one count of access device fraud in violation of Title 18, United States Code, Section 1029(a)(3), and five counts of aggravated identity theft in violation of Title 18, United States Code, Section 1028A, in connection with an identity theft tax refund fraud scheme.
The Honorable Robin S. Rosenbaum, U.S. District Judge, scheduled sentencing for June 24, 2013 at 9:00 A.M.
According to testimony and evidence presented at trial, on or about April 5, 2012, the defendant was found with at least fifteen (15) social security numbers, names, and dates of birth belonging to persons who were formerly or presently incarcerated by the state of Florida. The trial testimony and evidence further showed that fraudulent tax returns were filed for tax year 2011 for seventeen (17) of the individuals whose social security numbers the defendant possessed. Each of these fraudulent tax returns fraudulently claimed entitlement to a refund, amounting to thousands of dollars in fraud.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the City of Aventura Police Department, the City of Miami Gardens Police Department, and IRS-CID, with assistance from the SSA-OIG. The case is being prosecuted by Assistant U.S. Attorneys Alexandra Hui and Amanda Perwin.
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.
Mexican National Convicted in Alien Smuggling Scheme to Steal Fees from Aliens and Their FamiliesRead the Press Release
McALLEN, Texas – Pedro Rayon-Perez, 26, has been convicted of harboring undocumented aliens, United States Attorney Kenneth Magidson announced today. The Mexican National entered a guilty plea just moments ago as he was set to begin trial.
Rayon-Perez had been charged in an indictment returned Aug. 28, 2012, along with Roxanna Leal, 25, of McAllen, and Mexican Nationals Luis Aguilar-Hernandez, 41, and Osiel Castillo, 45, who had previously entered guilty pleas in the case.
The investigation revealed Rayon-Perez coordinated a smuggling ring that involved five undocumented aliens who crossed into the United States on Nov. 12, 2011. Rayon-Perez, Leal and Aguilar-Hernandez had agreed to demand payment of the aliens’ smuggling fees from their families while they held the aliens at stash houses in McAllen and Pharr. The aliens had previously agreed to pay the remainder of their fees once they arrived in Houston. However, the defendants planned to coerce early payment of these fees from their families and release them in public places throughout the Rio Grande Valley, not in Houston. They had previously conducted similar scams against other smuggled aliens.
The investigation began when Rayon-Perez convinced the family of a pregnant alien and her husband to wire $4,800, after which he double-crossed Aguilar-Hernandez by failing to divide the proceeds. When Aguilar-Hernandez demanded additional payment from the aliens, the family sought law enforcement assistance. The San Juan Police Department, assisted by the United States Marshals Service, conducted a tactical operation that freed the aliens on Nov. 17, 2011, from the stash house where Aguilar-Hernandez and Leal were harboring the aliens.
U.S. District Judge Randy Crane, who accepted all the pleas on the case, has set sentencing for June 20, 2013, for Rayon-Perez and Aguilar-Hernandez, while the other two will be sentenced on June 13, 2013, at 2:00 p.m. At sentencing, all four face up to 10 years imprisonment. With the exception of Leal, who was permitted to remain on bond, all will remain in custody pending their respective hearings.
The case was investigated by Homeland Security Investigations with assistance from the San Juan Police Department. Assistant United States Attorneys Grady J. Leupold and Leo J. Leo III are prosecuting the case.
Manhattan U.S. Attorney Announces Settlement with Department of Defense Weapons Parts Supplier for Procurement FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States has filed and simultaneously settled a civil fraud lawsuit against Electrical & Electronic Controls, Inc. (“E&E”), a small distributor of electrical components, for knowingly supplying the United States Department of Defense (“DoD”) with non-conforming electrical and other parts critical to weapons performance and operation, that later turned out to be defective. The Complaint was filed on March 21, 2013 in Manhattan federal court and the settlement was approved Friday by U.S. District Court Judge William H. Pauley, III.
Manhattan U.S. Attorney Preet Bharara said: “As E&E admitted, they provided less expensive unapproved parts to our Department of Defense, conduct that jeopardized both the flawless functioning of our weapons system and the safety of those who operate it. This Office is committed to ensuring that the U.S. Government gets what it pays for, and pursues those who would mislead it.”
According to the allegations contained in the Complaint:
From 2004 through 2007, E&E bid on and entered into fourteen contracts with the DoD. Under those contracts, E&E was required to supply parts from specific manufacturers that had been vetted and approved by the DoD for the quality of their products. Instead, E&E knowingly supplied less expensive parts from unapproved sources to the DoD. Twelve of the 14 contracts involved Critical Application Items, i.e., items that are essential to weapon system performance or operation, or the safety of operating personnel. In addition, many of the substituted parts turned out to be defective and unusable, costing the DoD hundreds of thousands of dollars.
As part of the settlement, E&E admitted, acknowledged, and accepted responsibility for repeatedly substituting less expensive parts from unapproved sources, and misrepresenting the source of the parts it then supplied to DoD. E&E must also pay $250,000 to the United States under the False Claims Act.
Mr. Bharara praised the investigative work of the DoD in this case.
Assistant U.S. Attorney Jaimie L. Nawaday is in charge of the case.
Manhattan U.S. Attorney Announces Arrest of French Citizen for Obstructing Foreign Bribery and Money Laundering InvestigationRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Mythili Raman, the Acting Assistant Attorney General for the Criminal Division, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest today of FREDERIC CILINS, a French citizen, for obstructing a grand jury investigation concerning alleged bribes paid for certain mining rights in the Republic of Guinea. CILINS was arrested yesterday in Jacksonville, Florida, and was presented in federal court in Jacksonville this afternoon. He was detained pending a detention hearing scheduled for April 18, 2013.
Manhattan U.S. Attorney Preet Bharara stated: “A grand jury can never learn the truth, and justice cannot prevail, where documents are intentionally destroyed and testimony is tainted by lies. As alleged, Frederic Cilins attempted to obstruct a significant investigation by corrupting evidence and testimony in precisely those ways. With today’s arrest, Mr. Cilins now must answer to the system he allegedly tried to obstruct.”
Acting Assistant Attorney General Mythili Raman said: “The Department of Justice considers efforts to obstruct grand jury and FBI investigations to be a serious threat to the due administration of justice. The Department will actively prosecute those found to be subverting our efforts to fight corruption.”
FBI Assistant Director-in-Charge George Venizelos: “As alleged, Cilins attempted to buy evidence he sought to destroy. The destruction of evidence was in furtherance of Cilins’s effort to obstruct an investigation into a bribery scheme. In effect, he was willing to commit bribery in an effort to cover up a bribery.”
According to the allegations in the Complaint filed today in Manhattan federal court:
Since January 2013, a federal grand jury sitting in the Southern District of New York has been conducting a criminal investigation into potential violations of the Foreign Corrupt Practices Act (“FCPA”) and money laundering related to a scheme in which a particular mining company (“Entity”) allegedly paid bribes to officials of a former governmental regime of the Republic of Guinea to win valuable mining concessions in the Simandou region of Guinea. The investigation is focused on, among other things, at least one individual who is a “domestic concern” within the meaning of the FCPA and also concerns certain proceeds that were wired to or through the Southern District of New York.
CILINS is a French citizen who has identified himself as a representative of the Entity. From at least March 2013 to the present, CILINS has repeatedly attempted to obstruct the grand jury investigation in conversations and meetings he has had with a cooperating witness (“CW”), the former wife of a now deceased high-ranking official in Guinea. Among other things, CILINS offered to pay the CW as much as $5 million if, in exchange, the CW would: provide, certain documents that CILINS knew had been requested from the CW by special agents of the FBI so that he could destroy them; and sign an affidavit containing numerous false statements regarding matters within the scope of the grand jury investigation. The documents that CILINS sought to destroy included original copies of contracts between the Entity and its affiliates and the CW, whose husband then held an office in Guinea that allowed him to influence the award of mining concessions. These contracts reflect an alleged corrupt deal in which the Entity offered to pay the CW’s company millions of dollars, among other benefits, with the understanding that, in exchange for these payments, the CW’s husband would undertake official action to help the Entity with respect to certain valuable mining concessions the Entity sought in the Simandou Region in Guinea.
In at least one meeting with the CW, which was recorded, when CILINS learned that a U.S. grand jury was investigating the Entity’s conduct, CILINS repeatedly said that the documents in the CW’s possession needed to be destroyed “urgently.” CILINS offered to pay the CW $200,000 and another $800,000 at a later date. Further, if the case was completed, and the Entity did not lose its business in Guinea, CILINS offered to pay the CW $5 million.
CILINS, 50, is a resident of France. He is charged with one count of witness tampering, which carries a maximum term of 20 years in prison; one count of destroying, altering, or falsifying records in a federal investigation, which carries a maximum term of 20 years in prison; and one count of obstructing a criminal investigation, which carries a maximum term of five years in prison.
Mr. Bharara praised the outstanding efforts of FBI in the investigation, which he noted is ongoing. He also thanked the Justice Department’s Office of International Affairs and Office of Enforcement Operations for their assistance in the investigation.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorney Elisha J. Kobre and Stephen Spiegelhalter of the Fraud Section of the Criminal Division are in charge of the prosecution.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
The charges and allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Frederic Cilins Complaint
Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Kidnapping Conspiracy Charges Against Massachusetts Veterans Affairs Police Chief and Former New York City High School LibrarianRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), today announced the arrests of RICHARD MELTZ, Chief of Police for the U.S. Department of Veterans Affairs, for the Bedford, Massachusetts Veteran Affairs Medical Center, and ROBERT CHRISTOPHER ASCH, a former high school librarian, for conspiracy to kidnap, torture, rape, and kill women and children. MELTZ was arrested yesterday afternoon and ASCH was arrested this morning by special agents of the FBI. MELTZ and ASCH will be presented today before U.S. Magistrate Judge James C. Francis IV in Manhattan federal court.
Manhattan U.S. Attorney Preet Bharara said: “The bone-chilling conduct alleged in this complaint is a chronicle of sadism and depravity that includes the defendants’ very real steps to carry out their plans to kidnap, torture, rape, and kill the women and children they targeted. As alleged, Richard Meltz and Robert Christopher Asch assiduously planned their plot in detailed conversations and alternately served as advisors and facilitators of the plan – Meltz provided ‘strategic advice’ and Asch conducted surveillance, and provided supplies including leather ties, a sleeping agent, instruments of torture, and a taser gun. The only thing that stood between these alleged kidnappers and their horrifying plot was the outstanding investigative teamwork of the FBI and the prosecutors in this Office.”
FBI Assistant Director-in-Charge George Venizelos said: “As alleged, both of these defendants took affirmative steps to carry out the conspiracy to kidnap and torture women. Their actions were not confined to talking about these ghoulish plans. They acquired the tools to accomplish the deed, including a taser and the chemical means to anesthetize their victims. And they made detailed plans to use these instruments – plans that were foiled by the FBI’s intervention.”
According to the Complaint filed today in Manhattan federal court:
Between 2011 and October 2012, MELTZ, ASCH, and a co-conspirator, Michael Vanhise, who was previously indicted on kidnapping conspiracy charges, engaged in a series of electronic mail (“e-mail”) and instant message communications during which they discussed and planned in great detail the kidnapping, torture, and murder of women. In October 2012, FBI agents became aware of these communications. Specifically, they learned that Vanhise was sending e-mail and instant messages from various computers to solicit individuals, including MELTZ and ASCH, to kidnap, rape, and kill his wife, his sister-in-law, her children and his step-daughter. Vanhise eventually met with FBI agents, and told them that he sent MELTZ and ASCH photographs of his sister-in-law and her minor children. MELTZ and ASCH both expressed interest in kidnapping the proposed victims, and Vanhise provided MELTZ and ASCH with a location that was in close proximity to the kidnapping targets’ actual home address. In an e-mail exchange between MELTZ and Vanhise about this plan, MELTZ wrote: “we go over there she know you let’s [sic.]us in we choke her out tie her up throw her in the back of your car take her someplace and [rape and torture her].”
In October 2012, an FBI agent working in an undercover capacity (“UC-1”) contacted ASCH online and began discussions about kidnapping a woman, who, unbeknownst to the defendants, was also actually an FBI undercover agent (“UC-3”). UC-1 and ASCH met on a number of occasions in Manhattan, and during one such meeting on March 13, 2013, ASCH provided UC-1 with a bag of materials to be used during the kidnapping and torture of UC-3, including a ski mask, hypodermic needles, leather ties, chrome forceps, a three-page gun show itinerary, documents relating to a “leg-spreader” and “dental retractor” that ASCH claimed to have purchased, and the liquid form of doxepin hydrochloride, commonly used as a sleep agent. During the same meeting, ASCH, along with UC-1 and another FBI agent acting in an undercover capacity (“UC-2”), conducted surveillance of UC-3, the intended victim, as she left her purported work place. ASCH, upon viewing UC-3, said, “She has to die.”
ASCH also introduced UC-1 to MELTZ, who participated in multiple conversations with both UC-1 and ASCH about the conspiracy’s objective to kidnap and commit acts of violence against women. For example, after MELTZ and ASCH discussed the widespread availability of stun guns in gun shops in New Hampshire, where MELTZ lived, and at gun shows in Pennsylvania, and MELTZ provided advice about the use of a stun gun in the commission of the kidnapping offense, ASCH traveled from New York to Pennsylvania to attend a gun show and purchased a high-voltage taser gun.
Throughout this investigation, the FBI intercepted numerous phone calls during which MELTZ provided advice, information, and assistance to ASCH on how to avoid detection and minimize the risks associated with abducting and murdering a woman. Examples of the techniques suggested by MELTZ include the avoidance of toll roads, using rental cars, paying for “tools” in cash, looking for victims in desolate areas who are engaged in other activities (such as talking on the phone), abducting victims at night, and using disguises when first approaching a potential victim.
On April 14, 2013, MELTZ met with UC-1 at a location in New Jersey. This meeting was recorded and observed by FBI agents. At the meeting, MELTZ and UC-1 discussed the kidnapping and murder of UC-3. MELTZ advised UC-1 on how best to dispose of UC-3’s body, including how to transport it from the crime scene to a desolate location in the woods in upstate New York. MELTZ told UC-1 that given the weather at the time of year, if UC-3’s body were left in the woods, wild animals would likely find and destroy it before law enforcement could find it.
On April 15, 2013, ASCH met UC-1 in lower Manhattan to conduct surveillance of UC-3. UC-1 and ASCH previously had discussed ASCH giving UC-1 the tools ASCH had gathered to use for the kidnapping, so that UC-1 could take them to the location where UC-3 was to be brought following her abduction. ASCH brought to the April 15 meeting two bags of tools intended to be used in the kidnapping, rape, torture, and murder of UC-3, including but not limited to a taser gun, rope, a meat hammer, duct tape, gloves, cleaning supplies, zip ties, a dental retractor, two speculums, 12-inch skewers, pliers, a wireless modem, and a leg spreader.
ASCH, 60, of Manhattan, and MELTZ, 65, of Stanhope, New Jersey, and Nashua, New Hampshire, are each charged with one count of conspiracy to commit kidnapping, which carries a maximum sentence of life in prison, and a maximum fine of $250,000, or twice the gross gain or gross loss from the offense.
Mr. Bharara praised the outstanding investigative work of the FBI. He also thanked the New Jersey State Police. Mr. Bharara added that the investigation is continuing.
This case is being handled by the Office's Violent Crimes Unit. Assistant United States Attorneys Hadassa Waxman and Brooke E. Cucinella are in charge of the prosecution.
The charges contained in the Complaint and the Indictment against Vanhise are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Robert Christopher Asch and Richard Meltz Complaint
Longest Federal Prison Term in El Paso Corruption Investigation Handed Down This Morning to Former Aliviane C.E.O. Cirilo "Chilo" Lara MadridRead the Press Release
In El Paso this morning, former Aliviane Chief Executive Officer Cirilo “Chilo” Lara Madrid was sentenced to 15 years in federal prison for conspiring to embezzle federal program funds announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Mark Morgan.
In addition to the prison term, United States District Judge Frank Montalvo ordered that Madrid pay a $100,000 fine and be placed under supervised release for a period of three years after completing his prison term. Judge Montalvo also ordered that Madrid, along with his co-defendants, jointly and severally pay $550,000 restitution to the Substance Abuse and Mental Health Services Administration (SAMHSA).
Last month, Judge Montalvo sentenced Madrid’s co-defendants. Former L.K.G. Enterprises, Inc., (LKG) president Ruben “Sonny” Garcia, Jr., received four years in federal prison followed by three years of supervised release after he pleaded guilty to conspiracy to commit theft or embezzlement of federal program funds. Judge Montalvo also sentenced LKG to five years probation during which time the corporation is prohibited from receiving any government contract.
“Mr. Madrid’s sentence today should send a clear message to the community that we will not tolerate abuse of the American taxpayers or corruption of our institutions of government. The next time someone with such intentions thinks it’s ‘business as usual’ in El Paso, they should remember the fifteen years that Mr. Madrid will spend in federal prison,” stated U.S. Attorney Robert Pitman.
In December, a jury convicted Madrid of one count of conspiracy to steal or embezzle federal program funds, one substantive count of theft of embezzlement of federal program funds and one count of conspiracy to commit mail fraud and the deprivation of honest services. Evidence presented before the jury revealed that Madrid and Garcia conspired to pay a total of $24,000 in bribes to former El Paso County Judge Dolores Briones for her help and assistance to LKG with an El Paso County contract it was awarded to evaluate a health program for severely mentally handicapped and emotionally disturbed children in El Paso County. The program, Border Childrens’ Mental Health Collaborative (BCMHC), was funded by a 5-year federal grant valued at over $9 million. Furthermore, evidence revealed that Madrid and Garcia caused fraudulent reports to be mailed to SAMHSA reflecting that they were satisfying the grant funding requirements.
“Today marks the end of a long and dark chapter in a sad story in which public confidence was shattered by a group, to include Mr. Madrid, who were entrusted to serve the needs of mentally challenged children but instead used their influence to feed their own personal greed. Today’s sentencing of Mr. Madrid also marks the continued commitment of the FBI to aggressively pursue individuals who have violated the public’s trust by holding them personally accountable for their self-serving acts,” stated FBI Special Agent in Charge Mark Morgan, El Paso Division.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Juanita Fielden and William F. Lewis, Jr., are prosecuting this case on behalf of the Government.
Lawrenceville Couple Sentenced for Bankruptcy FraudRead the Press Release
Thomas G. Grogan, 50, and Debra A. Grogan, 54, both of Lawrenceville, Illinois, were each sentenced on Friday, April 12, 2013, in United States District Court in Benton to 3 year terms of probation for fraudulently concealing assets from the United States Trustee and chapter 7 trustee during the pendency of their 2009 bankruptcy case in the United States Bankruptcy Court, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. Both waived indictment by the Grand Jury and pled guilty to an information charging them with that offense on December 7, 2012.
“My office will not condone any lies in any official proceeding,” said United States Attorney Wigginton. “Keeping the process fair for all is what I intend to do.”
“Concealing assets in a bankruptcy proceeding is a crime that threatens the integrity of the bankruptcy process and public confidence in that process, ” stated Nancy J. Gargula, United States Trustee for Southern Illinois, Central Illinois, and Indiana (Region 10). “We are grateful to all of our law enforcement partners, and in particular to U.S. Attorney Steve Wigginton for his commitment to pursuing those who commit bankruptcy fraud.”
Evidence introduced in support of the guilty pleas and sentences showed that in 2009 the Grogans filed a bankruptcy petition in which they sought to discharge $24,506.00 in debts owed to various creditors. Under bankruptcy law, the Grogans were required to list all of their assets, including any interest they might have in any lawsuit from which they might receive a settlement or award of damages. The Grogans repeatedly failed to disclose on their petition or to the Chapter 7 Trustee that Thomas Grogan expected to receive a settlement of $111,770.05 related to the pharmaceutical Vioxx. The Chapter 7 Trustee, however, independently discovered the existence of the settlement and was able to seize the funds and distribute them to the Grogans’ creditors.
In addition to his 3 year term of probation, Thomas Grogan was ordered to pay to the United States fines and special assessments totaling $2100 and to perform 30 hours of community service. Debra Grogan was also ordered to pay $2100 and to perform 20 hours of community service.
The case was investigated by the Federal Bureau of Investigation with the assistance of the United States Trustee for Region 10 and the Peoria Office of the United States Trustee. Region 10 of the U.S. Trustee Program is headquartered in Indianapolis, Indiana, with additional offices in Peoria, IL and South Bend, IN. The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws.
The case was prosecuted by Assistant United States Attorney James M. Cutchin.
Kanawha Co. Resident Who Collected and Traded Child Pornography Gets Federal Prison TimeRead the Press Release
CHARLESTON, W.Va. –A Kanawha County resident who collected more than 600 images of child pornography was sentenced on April 15 to two years in federal prison followed by 15 years of supervised release, announced U.S. Attorney Booth Goodwin. Michael Lee McCormick, 42, of Winifrede, Kanawha County, W.Va., pleaded guilty in November 2012. McCormick admitted that he possessed more than 600 images of child pornography. McCormick also admitted that he downloaded the images on his computer. McCormick further admitted that he shared the images with other individuals using the Internet.
U.S. Attorney Booth Goodwin said, “Pedophiles like this defendant who download and trade child pornography encourage the abuse and exploitation of children. Behind every piece of child pornography traded over the Internet, there is a child somewhere who has been exploited in the most heinous way imaginable. I will continue to spare no effort in prosecuting these crimes against children.”
Goodwin continued, “This sentencing underscores the fact that sexual exploitation remains a serious problem.”
The Federal Bureau of Investigation conducted the investigation. Assistant United States Attorney John Frail handled the prosecution. The sentence was imposed by United States District Judge John T. Copenhaver, Jr.
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 http://www.justice.gov/usao/wvs/PSCpage.html. For more information about internet safety education, please visit www.usdoj.gov/psc and follow the link named “Resources.”
Justin Doucet Indicted and Arrested for Receipt of Child PornographyRead the Press Release
JUSTIN DOUCET, age 20, a resident of Larose, was charged on Friday, April 12, 2013 in a one-count indictment by a Federal Grand Jury for receipt of child pornography, announced U. S. Attorney Dana Boente. DOUCET was arrested at his home on April 15, 2013 by Special Agents of the FBI.
According to court documents, beginning at a time unknown and continuing until on or about February 8, 2012, the defendant knowingly received computer images and digital video files which contained visual depictions of minors engaging in sexually explicit conduct.
If convicted, DOUCET faces a minimum term of imprisonment of 5 years and maximum term of imprisonment of 20 years. The defendant also faces a fine of $250,000.00 and three (3) years of supervised release following any term of imprisonment.
U. S. Attorney Boente reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney G. Dall Kammer.
(Download Indictment )
Justice Department Sues to StopSouth Carolina Tax Return PreparersRead the Press Release
The United States has asked a federal court in Charleston, S.C., to permanently bar Stacy Middleton of Charleston, and George Jenkins of Blythewood, S.C., from preparing federal income tax returns for others, the Justice Department announced today. According to the government complaint, Middleton and Jenkins have prepared federal income tax returns in Charleston and Columbia, S.C., through a business named MBM Tax and Accounting Services LLC. The complaint alleges that they have prepared returns that unlawfully understate income tax liabilities and overstate refunds through a variety of schemes.
The government complaint alleges that Middleton and Jenkins prepared returns that unlawfully created fictitious deductions and credits as well as overstating and duplicating existing deductions and credits. The complaint also alleges that Middleton created fraudulent Forms 1099 on behalf of customers, creating fake income to enable Middleton to claim the Earned Income Tax Credit on behalf of those customers. According to the complaint, the Internal Revenue Service has examined 842 returns prepared by Middleton and Jenkins, and over 93 percent of those examinations resulted in an adjustment to their client’s tax liability. Altogether, the government complaint alleges that Middleton’s and Jenkins’s activities may have resulted in as much as $55 million of loss to the United States.
Over the past decade, the Justice Department’s Tax Division has obtained hundreds of injunctions to stop tax fraud promoters and dishonest tax return preparers. Information about these cases is available on the Justice Department’s website.
United States v. StacyMiddleton , etc.
Complaint for Permanent Injunction (PDF)Justice Department Sues to Permanently EnjoinFlorida Tax Return PreparerRead the Press Release
The Justice Department filed suit today asking the United States District Court for the Southern District of Florida to permanently bar Osvaldo J. Diaz from preparing federal tax returns for others. The civil injunction suit alleges that Diaz prepares returns through Professional Accounting Services Inc. in Coral Gables, Fla.
According to the complaint, Diaz prepares tax returns that fabricate deductions and credits in an attempt to understate his customers’ tax liabilities or inflate his customers’ refunds. The government alleges that Diaz fabricates business and personal expenses and inflates real estate losses for his customers. The Internal Revenue Service has examined 250 returns prepared by Diaz and found that 93 percent resulted in deficiencies. As alleged in the complaint, the IRS projects that the tax loss from the returns prepared by Diaz could be tens of millions of dollars.
Over the past decade, the Justice Department’s Tax Division has obtained hundreds of injunctions to stop tax fraud promoters and dishonest tax return preparers. Information about these cases is available on the Justice Department’s website .
Related Materials:
United States v. Ann M. Williams , etc.
Complaint for Permanent Injunction (PDF)Justice Department Sues to StopRead the Press Release
SOUTH CAROLINA TAX RETURN PREPARERSWASHINGTON – The United States has asked a federal court in Charleston, S.C., to permanently bar Stacy Middleton of Charleston, and George Jenkins of Blythewood, S.C., from preparing federal income tax returns for others, the Justice Department announced today. According to the government complaint, Middleton and Jenkins have prepared federal income tax returns in Charleston and Columbia, S.C., through a business named MBM Tax and Accounting Services LLC. The complaint alleges that they have prepared returns that unlawfully understate income tax liabilities and overstate refunds through a variety of schemes.
The government complaint alleges that Middleton and Jenkins prepared returns that unlawfully created fictitious deductions and credits as well as overstating and duplicating existing deductions and credits. The complaint also alleges that Middleton created fraudulent Forms 1099 on behalf of customers, creating fake income to enable Middleton to claim the Earned Income Tax Credit on behalf of those customers. According to the complaint, the Internal Revenue Service has examined 842 returns prepared by Middleton and Jenkins, and over 93 percent of those examinations resulted in an adjustment to their client’s tax liability. Altogether, the government complaint alleges that Middleton’s and Jenkins’s activities may have resulted in as much as $55 million of loss to the United States.
Over the past decade, the Justice Department’s Tax Division has obtained hundreds of injunctions to stop tax fraud promoters and dishonest tax return preparers. Information about these cases is available on the Justice Department’s website.
Related Documents:
United States v. StacyMiddleton , etc.
Complaint for Permanent Injunction
(PDF documents)Portable Document Format (PDF) files may be viewed with a free copy of Adobe Acrobat Reader
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Harrisburg Man Convicted of Federal Drug Trafficking ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Harrisburg man faces at least 20 years and up to life imprisonment after his conviction last week on federal drug trafficking charges.
According to United States Attorney Peter J. Smith, Damien Hammonds, age 28, of Harrisburg, was convicted by a jury in United States District Court in Harrisburg following a weeklong trial before U.S. District Judge Christopher C. Conner on charges of unlawfully distributing cocaine base, also known as crack, as well as cocaine hydrochloride. The jury also held that the amount of crack cocaine involved was at least 280 grams plus at least half a kilogram of cocaine hydrochloride.
The evidence showed that Hammonds sold crack cocaine and also supplied co-conspirator Michael Hansley, also of Harrisburg, with multiple ounces of cocaine hydrochloride on a weekly basis which Hansley would convert into crack and then distribute through individuals working with and for him.
Hansley previously pleaded guilty and is awaiting sentencing on May 23, 2013.
Hammonds was stopped at the airport in San Juan, Puerto Rico in June 2010 and found to have approximately $22,000 in U.S. currency hidden on his person and in his luggage. Hammonds was in Puerto Rico to purchase a kilogram of cocaine from a source of supply located there.
The evidence also showed that in April 2011 Hammonds sold two ounces of crack cocaine to an individual who was assisting the Drug Enforcement Administration and the Dauphin County Drug Task Force. That sale was under surveillance by those agencies and was subject to both audio and video recording.
Hammonds was indicted in May 2011. A sentencing date has not been scheduled.
The case was investigated by the Drug Enforcement Administration’s Harrisburg Resident Office, the Pennsylvania Attorney General’s Bureau of Narcotics Investigation and the Dauphin County Drug Task Force.
Assistant United States Attorney William A. Behe prosecuted the case for the United States.
Granger Man Sentenced for Threat to Congressman’s OfficeRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —United States Attorney David Capp announced:
Brett Keiling, 49, of Granger, Indiana, was sentenced by District Judge Robert Miller, Jr. to 27 months imprisonment (time served) and 3 years of supervised release after pleading guilty to the felony offense of threatening to assault an employee of the United States with intent to impede the performance of official duties.On January 24, 2011, Keiling made a telephone threat to an employee of then Congressman Joseph Donnelly’s office.Keiling has been in federal custody since that date.
Keiling is subject to numerous conditions while on supervised release including having no contact with any public official’s office without first obtaining the permission of the United States Probation Office.
This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Barbara Brook.
Grand Jury Charges Four with Gun and Drug CrimesRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – A federal grand jury here has returned a 24-count indictment charging three Columbus-area men and a woman with providing and using firearms in illegal drug trafficking crimes.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Robin Shoemaker, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, Columbus Field Division (ATF), and Gahanna Police Chief Dennis Murphy announced the indictment today.The indictment charges Jack A. Morris, 37, of Columbus, Jeremy S. Baker, 25, of Blacklick, fugitive and Judy L. Kindle, 45, of Columbus with conspiracy and possession with intent to distribute oxycodone, which are each punishable by up to 20 years in prison, and possession with intent to distribute marijuana, punishable by up to five years in prison.
Morris is also charged with seven counts of possession of one or more firearms during and in relation to a drug trafficking crime. The first count is punishable by at least five years and the other counts are punishable by at least 25 years in prison. Baker and Kindle are also charged with one count of possession of a firearm in relation to a drug crime.
If convicted on all counts, Morris faces a mandatory minimum sentence of 155 years.
The indictment alleges that Morris and others supplied street level distributors of marijuana, cocaine and oxycodone with firearms and body armor as a way of protecting themselves from potential robberies. Morris also placed firearms in strategic locations throughout the house he shared with Kindle in order to intimidate potential robbers and protect the narcotics and proceeds kept at the house.
The indictment charges Christopher W. Wilcox, 30, of Reynoldsburg with two counts of supplying the others with firearms including an AK-47 and an AR-15, knowing that the weapons were to be used in the drug trafficking. Each count is punishable by up to ten years in prison.
"ATF will continue to work with our law enforcement partners to aggressively pursue those individuals who possess and use firearms in furtherance of their illicit activities", stated ATF Special Agent in Charge Shoemaker.
U.S. Attorney Stewart commended the investigation conducted by ATF and the Gahanna Police officers, and Assistant U.S. Attorney David DeVillers and Special Assistant U.S. Attorney Steve Dunbar with Columbus City Attorney Rick Pfeiffer’s Office, who are representing the United States in the case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
Former Full-Tilt Poker CEO Pleads Guilty and Is Sentenced in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that RAYMOND BITAR, the former Chief Executive Officer of Full Tilt Poker, pled guilty today to unlawful internet gambling and to conspiracy to commit bank fraud and wire fraud and was sentenced to time served by U.S. District Judge Loretta A. Preska. In pleading guilty, BITAR admitted to working with others to defraud his poker customers by lying to them about the security of their funds and falsely promising players that their funds would be protected in “segregated” accounts. In connection with his plea and sentencing, BITAR agreed to forfeit $40 million dollars in money and other property derived from his offenses. In sentencing BITAR, Judge Preska made clear that she would have imposed a substantial term of imprisonment had it not been for the fact that BITAR has an extremely serious heart condition and is in urgent need of a heart transplant.
Manhattan U.S. Attorney Preet Bharara said: “With his guilty plea and sentencing today, former Full-Tilt Poker CEO Raymond Bitar now stands convicted and must forfeit tens of millions of dollars in ill-gotten gains in connection with the massive fraud his company orchestrated against the U.S. banking system and the scheme that defrauded Full-Tilt Poker’s U.S. customers.”
The following allegations are based on the Superseding Information filed today in Manhattan federal court, the Superseding Indictment unsealed following the defendant’s arrest in 2012, and the Indictment unsealed on April 15, 2011 in which BITAR was initially charged, other documents previously filed in the case, and statements made in court:
In late 2006, Congress enacted the Unlawful Internet Gambling Enforcement Act ("UIGEA"), making it a crime to "knowingly accept" most forms of payment "in connection with the participation of another person in unlawful Internet gambling." Notwithstanding the enactment of UIGEA, Full Tilt Poker – a company founded by professional poker players in the U.S. in 2004 – contined to offer Internet gambling to U.S. residents, and took in an estimated $1 billion from U.S. residents through April 15, 2011. Because U.S. bankes were laregely unwilling to process payments for illegal Internet gambling, BITAR relied on fraudulent means designed to trick U.S. banks by disguising payments to Full Tilt Pker as payments unrelated to Internet gambling.
In order to encourage players to deposit money with Full Tilt Poker, BITAR directed Full Tilt Poker employees to falsely assure potential customers that player deposits would be held in segregated accounts that would be kept separate and distinct from the company’s operating accounts. In fact, Full Tilt Poker did not protect player funds in segregated accounts, and instead, used them for whatever purposes BITAR directed, including to pay him and other owners millions of dollars. Because player funds were being used to cover operating expenses, Full Tilt Poker experienced an increasing shortfall between the cash it had in its bank accounts and the money it owed to players. For example, by early November 2010, Full Tilt Poker owed its customers approximately $344 million but had only approximately $145 million in all of its bank accounts. To conceal this financial shortfall, BITAR directed Full Tilt Poker employees to misrepresent how much cash the company had on hand. Among other things, Full Tilt Poker
Further, to prevent players from learning about Full Tilt Poker’s shaky finances and to induce them to continue gambling with Full Tilt poker, BITAR concocted a scheme in which Full Tilt Poker players were led to believe they were gambling real money when in actuality they were gambling with “phantom” online credits. As explained in greater detail in the Superseding Indictment, in the fall of 2010, Full Tilt Poker lost its ability to reliably collect deposits from U.S. bank accounts. Rather than terminate its U.S. operations – an option that would likely have exposed the fact that Full Tilt Poker was not holding player cash in segregated accounts, and was holding less than half of the money it owed players – BITAR arranged for Full Tilt Poker to continue approving player deposits, and to award credit to depositors even though Full Tilt Poker had not actually collected the money from players and had no ability to do so. As United States players gambled and won or lost these phantom funds – ultimately totaling over $130 million – Full Tilt Poker would list the phantom funds on players’ online account statements, even though the funds were never collected, or available to pay the winning players.
Only weeks before U.S. law enforcement took action against Full Tilt Poker in April 2011, Full Tilt Poker’s internal financial statements reported $390 million in debts to players but only $60 million in its bank accounts. As players around the world began demanding their funds from Full Tilt Poker following the law enforcement action, rather than suspend operations, BITAR lured players to continue gambling with Full Tilt Poker by continuing to promise them that their funds were safe. In actuality, BITAR was using new customer deposits to pay off some of the backlog of player requests to withdraw funds and to cover the company’s operating expenses, including salary for himself and others. In effect, Full Tilt Poker operated what was, by then, nothing more than a Ponzi scheme. When the scheme finally collapsed, Full Tilt Poker was unable to pay players the approximately $350 million it owed them.
BITAR, 41 of Glendora, California, was also ordered to pay a $200 special assessment fee.
Mr. Bharara thanked the Federal Bureau of Investigation for its outstanding work in the investigation, which he noted is ongoing. He also thanked Immigration and Customs Enforcement’s Homeland Security Investigations New York and New Jersey offices for their continued assistance in the investigation.
BITAR is the eighth of the eleven defendants charged in connection with the original Internet poker indictment to have been arrested, all of whom have pled guilty. In addition to BITAR they are: Bradley Franzen, Ryan Lang, Ira Rubin, Brent Beckley, Chad Elie, John Campos and Nelson Burtnick. Charges are still pending against the remaining three defendants – Isai Scheinberg, Paul Tate and Scott Tom – who are at large, and are presumed innocent unless and until proven guilty.
This matter is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Arlo Devlin-Brown, Niketh Velamoor, and Nicole Friedlander are in charge of the criminal case, and Assistant U. S. Attorneys Sharon Cohen Levin, Jason Cowley, Andrew Goldstein, Michael Lockard and Christine Magdo are in charge of related civil money laundering and forfeiture actions.
U.S. v. Raymond Bitar S1 Information
Former Chief Financial Officer Pleads Guilty to Federal Charge in Theft of More Than $1 Million from Non-ProfitActivities Took Place over Seven Years, with Money Being Used for Defendant’s Personal BenefitRead the Press Release
WASHINGTON – Zachery K. Shaw, 52, the former chief financial officer of a non-profit dedicated to youths and young adults, pled guilty today to a federal charge stemming from a seven-year scheme involving the theft of more than $1 million of organization funds, announced U.S. Attorney Ronald C. Machen Jr. and Gary R. Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service.
Shaw, of Glenn Dale, Md., pled guilty in the U.S. District Court for the District of Columbia to a charge of theft of federal program funds. The Honorable John D. Bates scheduled sentencing for June 26, 2013. The charge carries a statutory maximum of 10 years in prison and financial penalties. Under federal sentencing guidelines, Shaw faces a likely range of 37 months to 46 months in prison and a fine of up to $75,000. As part of the plea agreement, Shaw has agreed to the entry of a forfeiture money judgment against him in the amount of $1,113,245.
According to a statement of offense signed by the government and the defendant, Shaw worked from 1993 through 2009 for Youth Services America (YSA), a non-profit with a mission to “improve communities by increasing the number and the diversity of young people, ages 5-25, serving in substantive roles.” The organization received federal funds for various purposes, including services for children and youth. Shaw began work as a part-time bookkeeper. In 1996, he was promoted to Director of Finance. He became Chief Financial Officer in or around 2006.
From in or approximately 2002 until the summer of 2009, when he left YSA, Shaw transferred about $1,113,245 of the non-profit’s funds to pay personal bills and make purchases for his benefit and the benefit of friends. The money was transferred through dozens of fraudulent wire transfers and forged checks to Shaw’s personal bank account, bank accounts of organizations he controlled, and credit card companies from which Shaw had obtained credit cards.
Among other things, Shaw caused YSA to transfer $289,829 to a fictitious company that he created, called “A Few Good Brothers,” or “AFGB.” AFGB did not have any employees, and was used to hold parties and promote events at night clubs. Additionally, and without YSA approval, Shaw used $26,561 of the non-profit’s money to pay for season tickets from 2002 until 2007 for the Washington Wizards professional basketball games.
“Zachery Shaw abused his position of trust to steal more than $1 million from programs for our youth,” said U.S. Attorney Machen. “He committed fraud dozens of times over seven years in an effort to enrich himself at the expense of our kids. His prosecution demonstrates our commitment to protecting charities and their donors from con men.”
In announcing the plea, U.S. Attorney Machen and Inspector in Charge Barksdale commended the work of the Special Agents who investigated the case from the Washington Division of the U.S. Postal Inspection Service. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Daniel Friedman, Mary Chris Dobbie, and Jonathan P. Hooks; Paralegal Specialist Diane Hayes, and Assistant U.S. Attorney James E. Smith, who is prosecuting the matter.
13-135Former Bank Ceo Pleads Guilty to Bank Fraud and Money LaunderingRead the Press Release
Jackson, Miss. -- Larry Barnette Hill, 58, of Meadville, Mississippi, pled guilty today in U.S. District Court to bank fraud and money laundering, U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen announced.
Larry Barnette Hill served as CEO of People’s Bank of the South in Bude, Mississippi. From 2004 through 2012, he fraudulently withdrew money from the bank’s Payroll Clearing Account and deposited those funds into the bank accounts of his family members and into a “shell” bank account he created for his personal benefit and the benefit of others. Hill also used the bank’s credit card for personal expenses without the bank’s authorization, and took third-party checks issued in the name of People’s Bank to make payments on a personal loan that he held at another bank and to embezzle funds into other accounts he owned and controlled for his own benefit or the benefit of others.
Hill concealed his fraudulent activities by creating false general ledger tickets which appeared to be for bank expenses in order to disguise his fraudulent activities within the budget of the bank. He also falsely inflated the bank’s budget each month in order to disguise additional money he was embezzling.
The total amount of loss in this case is still being calculated, but is estimated to be from $600,000 to over $1 million.
Hill will be sentenced by U.S. District Judge Tom Lee on July 11, 2013, at 9:30 a.m.
The maximum penalty for bank fraud is 30 years in prison and a $1,000,000 fine, and the maximum penalty for money laundering is 20 years in prison and a $500,000 fine.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Mike Hurst.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Federal, City, and Local Officials Unveil Decal for Sexual Assault Awareness MonthRead the Press Release
Law enforcement vehicles to display “End Sexual Abuse” teal decals throughout the month of April
CHARLESTON, W.Va. – United States Attorney Booth Goodwin, members of the law enforcement community, and REACH Rape Crisis Program advocates gathered today at the Robert C. Byrd Federal Courthouse in Charleston to unveil a special magnetic decal in recognition of Sexual Assault Awareness Month. The ceremony was held in conjunction with Sexual Assault Awareness and Prevention Month, which is recognized nationally during the month of April.
“Sexual assault and rape are terrible crimes that affect people of every age and background,” said U.S. Attorney Booth Goodwin, “These acts damage the lives of their victims irrevocably. Entire families can be turned upside down in the blink of an eye. Victims often spend the rest of their lives trying to pick up the broken pieces.”
During today’s ceremony, U.S. Attorney Goodwin said that the magnetic decals are small, yet enormously symbolic. “The magnetic decals symbolize our collective commitment to fighting sexual assault.”
According to statistics, nearly 1 in 5 women (18.3%) and 1 in 71 men (1.4%) in the United States have been raped at some time in their lives, representing approximately 22 million women and 1.6 million men. When all types of sexual violence are included, the number grows to nearly half of all women and one in five men experiencing sexual violence in their lifetime.
Statistics further reveal that child sexual abuse affects over one quarter of the national population. It is estimated that one in four girls and one in six boys will be sexually abused by age 18.
The United States Attorney’s Office for the Southern District of West Virginia is committed to prosecuting individuals who sexually exploit children, and also works diligently to identify and rescue victims as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice.
U.S. Attorney Goodwin said, “Behind every piece of child pornography traded over the Internet, there is a child somewhere who has been exploited in the most heinous way imaginable. People who download these pictures encourage that exploitation, and I will be relentless in prosecuting them.”
The magnetic decals unveiled at today’s ceremony will be prominently displayed on law enforcement vehicles and cruisers throughout the month of April.
For more information on the “End Sexual Abuse” magnetic ribbons or how they can be obtained, please contact REACH director Marla Willcox Eddy at: [email protected] or 304-340-3676.
Photo: U.S. Attorney Booth Goodwin led today's unveiling ceremony held at the Robert C. Byrd Federal Courthouse. The teal decal was created in recognition of Sexual Assault Awareness month.
Click here to view photo
Federal Inmate Pleads Guilty in Pennsylvania to Prison MurderRead the Press Release
A federal inmate pleaded guilty today for the violent murder of a fellow inmate in Pennsylvania’s Allenwood Correctional Complex, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Middle District of Pennsylvania Peter J. Smith.
Ritz D. Williams Jr., 32, of Gila River Indian Reservation, Sacaton, Ariz., pleaded guilty before Chief U.S. District Judge Yvette Kane to one count of first degree murder and possession of a weapon.
Williams and his co-conspirator Shawn Cooya were indicted by a federal grand jury in February 2008 and a superseding indictment was returned in July 2009.
According to court documents, Williams and Cooya aided each other in the premeditated murder of inmate Alvin Allery. On Sept. 28, 2005, Williams and Cooya stabbed Allery 10 times with a homemade knife and repeatedly kicked him in the head and torso, which resulted in Allery’s death.
On Jan. 8, 2013, Cooya pleaded guilty to one count of first degree murder. On March 18, 2013, he was sentenced to serve life in prison without the possibility of parole.
As a result of Williams’s plea, he faces a mandatory sentence of life in prison. His sentencing has been scheduled for May 15, 2013, in the Middle District of Pennsylvania.
The case is being prosecuted by Assistant U.S. Attorneys Wayne P. Samuelson and Michelle Olshefski of the Middle District of Pennsylvania and Trial Attorneys Julie B. Mosley and Mike Warbel of the Criminal Division’s Capital Case Unit (CCU) and former CCU Trial Attorney C.J. Williams. The case was investigated by the Bureau of Prisons and the FBI.
Federal Inmate Pleads Guilty in Pennsylvania to Prison MurderRead the Press Release
A federal inmate pleaded guilty today for the violent murder of a fellow inmate in Pennsylvania’s Allenwood Correctional Complex, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Middle District of Pennsylvania Peter J. Smith.
Ritz D. Williams Jr., 32, of Gila River Indian Reservation, Sacaton, Ariz., pleaded guilty before Chief U.S. District Judge Yvette Kane to one count of first degree murder and possession of a weapon.
Williams and his co-conspirator Shawn Cooya were indicted by a federal grand jury in February 2008 and a superseding indictment was returned in July 2009.
According to court documents, Williams and Cooya aided each other in the premeditated murder of inmate Alvin Allery. On Sept. 28, 2005, Williams and Cooya stabbed Allery 10 times with a homemade knife and repeatedly kicked him in the head and torso, which resulted in Allery’s death.
On Jan. 8, 2013, Cooya pleaded guilty to one count of first degree murder. On March 18, 2013, he was sentenced to serve life in prison without the possibility of parole.
As a result of Williams’s plea, he faces a mandatory sentence of life in prison. His sentencing has been scheduled for May 15, 2013, in the Middle District of Pennsylvania.
The case is being prosecuted by Assistant U.S. Attorneys Wayne P. Samuelson and Michelle Olshefski of the Middle District of Pennsylvania and Trial Attorneys Julie B. Mosley and Mike Warbel of the Criminal Division’s Capital Case Unit (CCU) and former CCU Trial Attorney C.J. Williams. The case was investigated by the Bureau of Prisons and the FBI.District Man Pleads Guilty to Voluntary Manslaughter While Armed in 2009 Shooting in Northeast Washington-Technology Provided Key Evidence in Case-Read the Press Release
WASHINGTON – Terrell Patton, 20, of Washington, D.C., pled guilty today to a charge of voluntary manslaughter while armed stemming from a slaying that took place in October 2009 in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Patton entered the plea in the Superior Court of the District of Columbia. The plea, which is contingent upon the Court’s approval, calls for a sentence of up to 11 years of incarceration. The Honorable Robert E. Morin scheduled sentencing for June 21, 2013.
According to the government’s evidence, on Oct. 29, 2009, at about 10:30 p.m., Patton, also, known as, “Fatman,” was observed with the victim, Deuante Ray, 20, in the area of the 1200 block of 49th Place NE. Another individual observed Patton in possession of a nine-millimeter handgun. A third person noted that the defendant was angry with Mr. Ray because he believed that Mr. Ray had taken his pack of Ecstasy pills valued at roughly $80.
At approximately midnight, Patton called Mr. Ray’s friend and asked to talk to Mr. Ray. He told Mr. Ray to meet him on 49th Street. Mr. Ray was last seen riding a bicycle and entering a rear alley off the 1100 block of 48th Street NE with Patton.
By Patton’s own admissions, he permitted Mr. Ray to use his cellphone to call Mr. Ray’s girlfriend. Mr. Ray made one call to his girlfriend at 12:20 a.m. on Oct. 30, 2009, and a second call at 12:30 a.m., which ended at 12:35 a.m. Phone records and other witnesses confirm that Mr. Ray had used Patton’s telephone.
ShotSpotter technology recorded gunfire at 12:35:15 a.m. in the rear alley. A witness heard shots and observed a thin person and a heavier individual in the alley. This witness called 911 at 12:36 a.m. This witness also saw the heavier individual, believed to be Patton, take a bike. The witness was unable to make any identification.
The Metropolitan Police Department (MPD) arrived at approximately 12:40 a.m. and found Mr. Ray’s body. He had been shot at close range in the head and also in the chest with a nine-millimeter weapon. He was found with his pants down, and his pockets turned out. Mr. Ray was known to typically carry a wallet, and none was found. His bike also was missing.
Patton was arrested in Washington, D.C. on July 2, 2011 and has been incarcerated since.
In announcing the plea, U.S. Attorney Machen praised the work of the MPD detectives and officers who investigated the case. He also acknowledged the effort of those who worked on the case from the U.S. Attorney’s office, including Paralegal Specialists Kelly Blakeney, Fern Rhedrick and Phaylyn Hunt; Investigators Stephen Cohen, Durand Odom and Tommy Miller; Victim/Witness Advocate Marcia Rinker; Litigation Technology Specialist Leif Hickling, and Assistant U.S. Attorney David B. Goodhand of the Appellate Section. Finally, he commended the work of Cynthia G. Wright, of the Homicide Section, who prosecuted the case.
13-136Defendants Convicted After Jury Trial of Trafficking Contraband CigarettesRead the Press Release
United States Attorney James L. Santelle announced today that on Friday, April 12, 2013, a federal jury in the Eastern District of Wisconsin found Shakil Wamiq, (age: 32), of Elgin, Illinois, and Mazher Ali Khan, (age: 49), of Evergreen Park, Illinois, guilty of contraband cigarette trafficking, a violation of Title 18, United States Code, Section 2342(a).
Wamiq, who was operating as Good Deal Wholesale, Inc., in Streamwood, Illinois, was convicted of four counts, and Khan, who was operating as MAK Distributors, Inc., in Mokena, Illinois, was convicted of three counts. Each offense is punishable by up to five years in prison and a $250,000 fine.
Wamiq and Khan where charged in a federal indictment that included seven other defendants. They are Mohammad Uddin, (age: 30), of Naperville, Illinois; Mohammed Mazheruddin, (age: 41), formerly of Milwaukee, now residing in Texas; Adil Majid, (age: 54) of Bolingbrook, Illinois; Haroon Bheri, (age: 33), of Glendale Heights, Illinois; Maher Sunnakrot, (age: 38), of Worth, Illinois; and Farrukh Aslam, (age: 28), of Glendale Heights, Illinois. All other defendants except Aslam, who is a fugitive, resolved their cases prior to trial.
The Bureau of Alcohol, Tobacco, Firearms and Explosives initiated the year-long investigation based upon a complaint from a local citizen who alleged that his business was being financially undercut by persons who were dealing in untaxed tobacco products. The investigation included the use of an undercover warehouse in Milwaukee, and an undercover agent posing as a source of untaxed cigarettes. The defendants purchased untaxed cigarettes at the warehouse at a cost substantially below that of an authorized manufacturer, and they transported the cigarettes into Illinois, where they were further dispersed.
Under federal law, only certain categories of persons may possess cigarettes which do not bear a State tax stamp. Wamiq and Khan contended that their Illinois distributors’ licenses authorized them to purchase the cigarettes in Wisconsin and place them into commerce in Illinois.
Uddin, Mazharuddin, Majid, Bheri and Sunnakrot will be sentenced in June. Wamiq and Khan will be sentenced in July.
In announcing the guilty verdicts returned by the jury on Friday, United States Attorney Santelle commented: “This prosecution and the investigation on which it was premised reflects the continuing, focused commitment of federal law enforcement to identify, pursue, and bring to justice those individuals who not only engage in the unlawful trafficking of contraband but do so in a manner that compromises the legitimate business operations of law-abiding entrepreneurs. In concert with the prosecuting attorneys and professional staff of my office, the ATF Special Agents investigated, developed, and presented compelling evidence of criminal behavior here in Wisconsin and in Illinois, and Friday’s verdict—along with the previous convictions of the other co-defendants—should serve as a deterrent to others who may consider like conduct.”
The case was prosecuted by Assistant United States Attorneys Carol L. Kraft and Laura S. Kwaterski and investigated by special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Cuyahoga Falls Man Sentenced to Prison for Trafficking in Counterfeit PursesRead the Press Release
Ronald Jason Azar, age 34, of Cuyahoga Falls, Ohio, was sentenced to 18 months in prison in connection with his recent conviction for trafficking in more than $180,000 worth of counterfeit merchandise, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Azar pleaded guilty in October to a one-count indictment charging him with trafficking in merchandise containing counterfeit trademarks, logos or labels.
On or about April 27, 2011, Azar intentionally trafficked and attempted to traffic in approximately 104 counterfeit designer handbags which, if genuine, were valued at approximately $183,488, according to court documents.
The handbags included 12 Gucci, 23 Coach, 17 Louis Vuitton, five Versace, five Chanel, two Marc Jacobs, three Dooney & Burke, six Prada, eight Fendi, seven Chloe, seven Jimmy Choo and nine Dolce & Gabbana handbags, which contained counterfeit marks, logos, labels, hang tags, patches, stickers, emblems, holograms and packaging. The marks on the merchandise were identical to and substantially indistinguishable from marks used on genuine merchandise, and were in use and registered for such goods on the principle register of the United States Patent and Trademark Office, according to court documents.
The use of such counterfeit and spurious marks was likely to cause confusion, mistake or to deceive, according to court documents.
This case was prosecuted by Assistant U.S. Attorney Robert W. Kern, Cybercrime Coordinator for the Cleveland U.S. Attorney’s Office, following an investigation by the Cleveland Office of the Department of Homeland Security, Office Immigration and Customs Enforcement.
Creal Springs Man IndictedRead the Press Release
A Williamson County, Illinois, man was indicted on April 2, 2013, in an indictment charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
On April 8, 2013, Jeremieh L. Hodge, 32, of Creal Springs, was arraigned in United States District Court in Benton. The indictment alleged that the offense occurred between 2009 and March 2013, in Williamson, Saline, and Johnson Counties. At an April 9, 2013, hearing, Hodge was ordered released on bond pending a June 10, 2013, jury trial.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, Hodge faces a minimum of 5, to a maximum of 40 years in prison, a $5,000,000 fine, and 4 years of supervised release.
The ongoing investigation is being conducted by the Illinois State Police, Johnson County Sheriff’s Office, Williamson County Sheriff’s Office, and Jackson County Sheriff’s Office. The Creal Springs Police Department also assisted during the investigation.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Collinsville Man Sentenced for Firearm OffenseRead the Press Release
Duran L. Morgan, 27, from Collinsville, IL, was sentenced on April 12, 2013, in federal district court in East St. Louis, IL, on one count of unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Morgan was sentenced to 41 months in prison, three years of supervised release, fined $375 and ordered to pay $100 special assessment. Morgan, who previously pled guilty, admitted that a firearm recovered from a parked car belonged to him. Court proceedings revealed that law enforcement officers observed Morgan repeatedly bending towards the center of the front seat while apparently focusing on something under the seat. Upon approaching the car, police noticed a loaded semi-automatic weapon in plain view on the driver’s side floor of the vehicle. Morgan admitted that he had possessed a gun, knowing that he was a convicted felon and that it was illegal for him to have a firearm. The firearm was forfeited as a result of this case.
The investigation was conducted by the Federal Bureau of Investigation and prosecuted by Special Assistant United States Attorney Matthew H. Brooks.
Chicago Leader of Romanian-Based Conspiracy That Obtained $1.6 Million in False Tax Refunds Sentenced to 85 Months in PrisonRead the Press Release
CHICAGO — The leader in Chicago of a Romanian-based international conspiracy to fraudulently obtain millions of U.S. tax dollars was sentenced to just over seven years in federal prison. The defendant, OVIDIU ISAC, oversaw and directed nearly two dozen co-defendants in the United States who used their bank accounts to receive fraudulent federal income tax refunds after overseas co-conspirators filed hundreds of false tax returns claiming refunds in the names of Romanian citizens who had visited the United States on exchange student visas.
At least 470 false tax returns, typically claiming refunds between $4,000 and $7,000, were filed and resulted in a loss of more than $1.6 million to the U.S. Treasury during the conspiracy that spanned three tax years between 2007 and 2009. The returns were filed in the names and social security numbers of individuals who had previously traveled to the United States on temporary student visas and had filed tax returns in the past, but who were likely no longer living in the U.S. nor filing a real return in their own name. Isac led and organized the coconspirators in Chicago and controlled the flow of money to his co-conspirators in Romania. On one occasion, Isac led a group of co-conspirators in physically attacking a group of individuals who were associated with someone who refused to pay Isac his cut of the proceeds.
Isac, 31, a Romanian citizen who lived in Skokie, was sentenced on Friday to 85 months in prison and ordered to pay restitution totaling $1,641,209 by U.S. District Judge Charles Norgle. Isac pleaded guilty in January to conspiracy to defraud the United States and theft of government funds. He will be subject to deportation after completing his sentence.
Isac was arrested in April 2010 and was among 24 defendants who were indicted in July that year for their roles in the conspiracy. Nineteen of the defendants have been convicted and sentenced, while five remaining co-defendants are fugitives.
Evidence in two companion cases showed that the fraudulent returns typically claimed large deductions for moving expenses, and the fraud was concealed by electronically submitting false wage and tax statements. The returns were filed in the names of real individuals and employers who likely were unaware that their identities and information were being misused. At least 200 bank accounts in the names of more than 75 individuals were used to receive and obtain the tax refund money triggered by the fraudulent returns.
The sentence was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division; and Gary Hartwig, Special Agent-in-Charge of Homeland Security Investigations (HSI) in Chicago.
The government was represented by Assistant U.S. Attorneys Matthew Burke, Jennie Levin and Julie Porter.
California Resident to Begin Serving Wire Fraud SentenceRead the Press Release
CONCORD, NH:- Sirous Sorat, 58, a California resident, self-surrendered today to the Federal Bureau of Prisons to begin serving a thirty-seven month sentence for wire fraud, announced United States Attorney John P. Kacavas.
The sentence stems from Sorat's conviction in the United States District Court for the District of New Hampshire for participating in a scheme to defraud companies that purchased fraudulent health insurance claims that Sorat represented were legitimate.
These claims were generated when Los Angeles area doctors purportedly gave workers compensation patients certain cream compound for joint and muscle pain. The government investigation revealed that, in fact, the doctors had not delivered the creams to the patients but Sorat nevertheless claimed to have purchased the resulting health insurance claims from the doctors. Sorat then sold the purported insurance claims to companies in Massachusetts and Florida, who, through a New Hampshire billing agent, submitted the claims to various insurance companies for potential reimbursement.
In addition to his jail sentence, Sorat was ordered to pay forfeiture and restitution of over $2.3 million.
The case was investigated by the Federal Bureau of Investigations and prosecuted by Assistant United States Attorneys for the District of New Hampshire Michael Gunnison and Seth Aframe.Armed Bank Robbery Sends Final Two to PrisonRead the Press Release
HOUSTON – The final two defendants convicted in the armed robbery and attempted robbery of two local banks have been ordered to federal prison, United States Attorney Kenneth Magidson announced today. Andrea Steptore, 30, Odis Darrell Wheeler, 21, both of Houston, had previously pleaded guilty to aiding and abetting aggravated bank robbery. Steptore was further convicted of brandishing a firearm during a crime of violence.
Today, U.S. District Judge Vanessa Gilmore, who accepted the guilty pleas, sentenced Steptore to a sentence of 67 months for the underlying bank robbery charge, but also received a mandatory seven years for the firearms charge which must be served consecutively for a total sentence of 151 months. Wheeler was ordered to serve a 46-month-term of imprisonment. Both will also serve a term of three years on supervised release following completion of their sentences.
On Sept. 9, 2010, Steptore and Barry Ogilvie, 37, of Houston, were armed with firearms and robbed the Prosperity Bank located on the 2800 block of F.M. 1960 East in Houston. During the robbery, Ogilvie shot two rounds of ammunition into a wall. No one was injured, but behind the wall was a drive-thru teller stand. Zachary Ellis, 48, of Houston, had selected the bank, scouted it prior to the robbery and shared in the proceeds.
Less than two weeks later, Ogilvie and Steptore attempted to rob the Vista Bank on the 14500 block of Northwest Freeway in Houston. They were both armed with semi-automatic pistols and wore masks. When they approached the bank, an off-duty police officer, who was working security at the bank, saw them and began firing at them. Steptore was able to flee in the getaway vehicle driven by a third individual, but Ogilvie was arrested. Odis Darrell Wheeler, 21, of Houston, stole a car which was used in the robbery and waited around the corner in a switch vehicle. Ellis had again selected the bank, told his co-conspirators he had scouted it prior to the robbery and planned to share in the proceeds.
Ogilvie and Ellis also pleaded guilty and were previously sentenced to 198 and 97 months, respectively. Steptore, Ogilvie and Ellis were further ordered to pay restitution to Prosperity Bank.
The case was investigated by FBI Houston Bank Robbery Task Force. Assistant United States Attorney Jennie Basile is prosecuting the case.
Anna Man Convicted and Sentenced for Wildlife ViolationsRead the Press Release
James S. Scherer, 44, of Anna, IL, pleaded guilty to five misdemeanor wildlife violations on April 11, 2013, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Scherer pleaded guilty to an Information (charging document) which charged that on November 4, 2012, on property in the Crab Orchard National Wildlife Refuge System, Scherer did knowingly distribute and hunt over a baited field, that on November 4, 2012, on property in the Crab Orchard National Wildlife Refuge System, Scherer hunted in a closed area of the wildlife refuge system; that on or about October 18, 2012, on property in the Crab Orchard National Wildlife Refuge System, Scherer did knowingly distribute and hunt over a baited field; that on October 18, 2012, on property in the Crab Orchard National Wildlife Refuge System, Scherer violated special regulations of the refuge system by screwing a metal object into a tree; and, that during August 2012, on property in the Crab Orchard National Wildlife Refuge System, Scherer violated special regulations by cutting, removing, or damaging any tree or vegetation, without a written permit.
Scherer was sentenced to two (2) years’ probation as to each of the charges, with all terms to run concurrently. It was a further condition that during the term of probation, Scherer shall not hunt on any public lands, state or federal. The Court also fined Scherer $1,450.
The investigation in this case was conducted by the United States Fish and Wildlife Service.
The case is being handled by Assistant United States Attorney George Norwood.
Sunday 14 April 2013
Two Plead Guilty to Arson That Killed Kansas State ResearcherRead the Press Release
TOPEKA – Two people have pleaded guilty to setting a fire that killed a woman in an apartment complex in Manhattan, Kan., U.S. Attorney Barry Grissom said today.
Patrick Martin Scahill, 20, Manhattan, Kan., and Virginia Amanda Griese, 19, Manhattan, Kan., pleaded guilty to one count each of arson resulting in death.
In his plea, Scahill admitted he started the Feb. 6, 2013, fire at the Lee Crest Apartments at 820 Sunset Avenue in Manhattan that caused the death of Kansas State researcher Vasanta Pallem. Scahill admitted he started the fire in an effort to create a diversion that would prevent police from finding evidence in his residence of an armed robbery and other crimes.
The sequence of events began in the late evening hours of Feb. 5 when Scahill’s associates, Frank Joseph Hanson and Dennis James Denzien, conspired to commit a robbery at Dara’s Fast Lane, a convenience store in Manhattan. Early in the morning hours of Feb. 6, Hanson and Denzien robbed Dara’s Fast Lane. Denzien was the driver. Hanson entered the store brandishing a .22 caliber pistol owned by Scahill.
At about 6 p.m. that day, Riley County Police were dispatched to a disturbance call and knocked on the door of the residence where Scahill lived. Denzien and Hanson also were at the residence when police arrived. After police noticed a strong odor of marijuana from the residence, they told Scahill and the others they were going to seek a warrant to search the residence. Scahill, Denzien and Hanson left the residence while police were working to obtain a warrant.
Meeting together later, Scahill, Denzien, Hanson and Griese discussed the likelihood that police would find narcotics, a firearm and items associated with the robbery at Dara’s Fast Lane once they searched Scahill’s residence. They discussed ways to divert the attention of law enforcement officers long enough for Scahill to re-enter the residence and remove the incriminating evidence.
In the end, Griese, a friend named Gavin Hairgrove, and another person, drove to a Walmart where Griese bought a five-gallon gas can. Then they went to a HyVee gas station where Hairgrove worked and Griese pumped 4.7 gallons of gas into the can. She paid for it with her debit card.
Later, Scahill and Griese drove around looking for something to burn. They chose the Lee Crest Apartments, a three-level, 12-unit apartment complex within sight of Scahill’s apartment. Scahill entered the building. He emptied the contents of the gas can in the lower level hallway, set the fire and left the building.
As the fire burned, a thick, black smoke rose through the building, forcing tenants out of their apartments through windows and out of balconies. Vasanta Pallem was unable to escape the building. She worked her way from her apartment on the top floor of the building to the first floor where she died near the east entrance of the complex. An autopsy showed she died from breathing fumes during the fire. The carbon monoxide saturation in her system was over 50 percent, more than enough to kill her.After setting the fire, Scahill and Griese went to Griese’s apartment where Scahill cleaned up and discarded clothes soaked in gasoline. Hairgrove assisted Scahill in disposing of his shoes, which reeked of gasoline.
Later, investigators looking into the arson received tips that led them to Scahill.
Sentencing is set for July 15. They face a maximum penalty of life in federal prison.
Other defendants include:
Frank Joseph Hanson, 22, Manhattan, Kan., who has pleaded guilty and is set for sentencing July 8.
Dennis James Denzien, 20, Manhattan, Kan., who is awaiting trial.
Gavin Taylor Hairgrove, 29, Manhattan, Kan., who is awaiting trial.Grissom commended all the investigators and law enforcement agencies that worked on the case, including the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Riley County Attorney’s Office, the Riley County Police Department, the Manhattan Fire Department, the Kansas State Fire Marshal’s Office, the Kansas Bureau of Investigations and the Pottawatomie County Sheriff’s Office, as well as Assistant U.S. Attorney Jared Maag, Special Assistant U.S. Attorney Barry Wilkerson and Special Assistant U.S. Attorney Barry Disney, who are prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Friday 12 April 2013
Worcester Tax Preparer Charged with Preparing False ReturnsRead the Press Release
BOSTON - A Worcester woman was charged today on charges of falsifying tax returns.
Jenniffer Cox Elicier, 34, of Worcester was charged in an Indictment with multiple counts of aiding and assisting in the preparation of false tax returns.
The Indictment alleges that Elicier operated Cox Elicier Tax in Worcester where she prepared individual federal income tax returns for clients. Elicier allegedly inserted false information into her clients’ Form 1040 returns, including false Schedule A deductions such as gifts to charity and unreimbursed employee expenses and educator expenses, and thereby generated illegal refunds.
The statutory maximum penalty for the crime charged is three years in prison, to be followed by one year of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Lori J. Holik of Ortiz’s Economic Crimes Unit.
The details contained in the Indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Wilson Man Sentenced to Life for Narcotics & Weapon ViolationsRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court yesterday DENNIS RAY HOWARD, 41, of Wilson, North Carolina was sentenced by Chief United States District Judge James C. Dever III to life imprisonment, followed by 60 months of supervised release.
On October 17, 2012, HOWARD was found guilty by a federal jury of 11 counts of narcotics violations. HOWARD was convicted of one count of Conspiracy to Distribute and Possess With the Intent to Distribute 100 Grams or More of a Mixture or a Substance Containing a Detectable Amount of Phencyclidine, in violation of Title 21, United States Code, Section 846, seven counts of Distribution of a Quantity of Phencyclidine, in violation of Title 21, United States Code Sections 841(a)(1), one count of Distribution of a Quantity of Phencyclidine and Aiding and Abetting in violation of Title 21, United States Code Sections 841(a)(1) and Title 18 United States Code Section 2 and one count of Possession With Intent to Distribute a Quantity of Phencyclidine in violation of Title 21, United States Code 841(a)(1) and one count of Possession of a Firearm in Furtherance of a Drug Trafficking Offense in violation of Title 18, United States Code Section 924(c).
According to the evidence presented at trial, from September 20, 2010 until October 13, 2010, six controlled purchases of Phencyclidine (PCP) from HOWARD from a residence in Wilson. Again on March 15, 2011 law enforcement conducted a controlled purchase of PCP from HOWARD and on April 7, 2011 investigators conducted a final controlled purchase of PCP from HOWARD. On May 13, 2011, law enforcement officers conducted a traffic stop of HOWARD’S vehicle and noticed an odor consistent with PCP emanating from the vehicle. Both HOWARD and the vehicle were searched uncovering a vial containing a residue amount of PCP. Based on information discovered during the investigation of HOWARD’S drug distribution activities, his residence was also searched revealing a .25 caliber pistol and ammunition. Testimony at trial showed that HOWARD was responsible for distributing over 500 grams of PCP in the Wilson are during the time frame of the conspiracy.
Investigation of this case was conducted by Wilson Police Department and the Drug Enforcement Administration. Assistant United States Attorney Jennifer E. Wells prosecuted the case.
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Brison K. Williams, 20, of South Bend, Indiana, a defendant in the case US v Shaw et al., pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of racketeering.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation.Sentencing has been set for 7/15/13.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation and the South Bend Police Department.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
Cedric Hill, 33, of South Bend, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of possession of a firearm by a convicted felon.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation.Sentencing has been set for 7/18/13.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
Sandra Alfaro, 35, of Indianapolis, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offenses of conspiracy to harbor illegal aliens and conspiracy to commit mail fraud.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation.Sentencing has been set for 7/18/13. These charges were filed as a result of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the United States Postal Service-Office of the Inspector General.This case is being prosecuted by Assistant United States Attorney Kenneth Hays.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Lorenzo Jackson, 33, of South Bend, Indiana, was sentenced by District Judge Jon DeGuilio to 117 months imprisonment and 3 years of supervised release after pleading guilty to the felony offenses of possession of marijuana with the intent to distribute, possession of a firearm in furtherance of a drug trafficking crime and possession of a firearm as a convicted felon.According to documents filed by the government in this case, Jackson admitted that he sold and distributed marijuana to other persons in 2012 and possessed a shotgun during this period in order to protect himself from robbery while distributing the marijuana.Jackson has prior felony convictions including dealing in cocaine and possession of marijuana.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Efrain Castenada, 31, a citizen of Mexico, was sentenced by District Judge Jon DeGuilio to 151 months imprisonment and 3 years of supervised release after pleading guilty to the felony offenses of possession of a firearm by an illegal alien and unlawful hostage taking/detention.According to documents filed by the government in this case, Castenada used a firearm to threaten to kill his wife, and taking her and two children hostage. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Jose Nevarez, 37, of South Bend, Indiana, was sentenced by District Judge Jon DeGuilio to two years of supervised release and a $2000.00 fine after pleading guilty to the felony offense of structuring transactions to evade reporting requirements.According to documents filed by the government in this case, Nevarez structured several deposits into his bank account under $10,000 t in June and July of 2010 to avoid the reporting requirements banks have to make to the federal government when cash deposits are made that exceed $10,000. This case was the result of an investigation by the Internal Revenue Service-Criminal Investigations Division.This case was prosecuted by Assistant United States Attorney William Grimmer.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Ronald Parks, 60, no known address/homeless, pled guilty before Senior District Judge Rudy Lozano to the felony offenses of kidnapping and, in a separate matter, the bank robbery of Citizens Bank in Hammond, Indiana.Sentencing in both cases has been set for 7/11/13.These charges were filed as a result of an investigation by the Federal Bureau of Investigation and the Hammond Police Department.These cases are being prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Imaru Jones, 29, of Griffith, Indiana, pled guilty before Magistrate Judge Paul Cherry to the felony offense of distribution of marijuana.Magistrate Cherry is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney Dean Lanter.
Jazneen Williams, 22, of Gary, Indiana, pled guilty before Chief Judge Philip Simon to the felony offense of making false statements in connection with the purchase of a firearm.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Chicago Police Department.This case is being prosecuted by Assistant United States Attorney Dean Lanter.
William Weigand, 43, of Portage, Indiana, pled guilty before District Judge Joseph Van Bokkelen to the felony offense of possession of a firearm by a convicted felon.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force and the Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney David Nozick.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Robert Lockhart, 20, of East Chicago, Indiana, a defendant in the case US v Briseno et al., was sentenced by Chief Judge Philip Simon to 240 months imprisonment and 5 years of supervised release after pleading guilty to the felony offense of conspiracy to participate in racketeering activity. Lockhart, a member of the Imperial Gangsters street gang, admitted that during the course of the conspiracy he was responsible for the murder of Miguel Colon. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the East Chicago Police Department, and the Federal Bureau of Investigation, with assistance from the Gary Police Department, the Hammond Police Department and the Lake County HIDTA.This case was prosecuted by Assistant United States Attorney David J. Nozick.
Aaron Grant, 33, of East Chicago, Indiana, was sentenced by Chief Judge Philip Simon to 30 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm as a convicted felon.Grant has a prior conviction for possession of cocaine in 2005.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Jeremiah Stevenson, 23, of Gary, Indiana, a defendant in the case US v Elmore et al., was sentenced by Senior District Judge Rudy Lozano to 78 months imprisonment, $17,954.35 in restitution and 3 years of supervised release after pleading guilty to the felony offenses of the robbery of Auto Zone and the robbery of Gamestop in Hammond, Indiana; and the armed robbery of Tech Credit Union in East Chicago, Indiana.
Lavelle Hatley, 18, of Gary, Indiana, a defendant in the case US v Elmore et al., was sentenced by Senior District Judge Rudy Lozano to 108 months imprisonment and 3 years of supervised release after pleading guilty to the felony offenses of the robbery of Rallys, Family Dollar, and Church’s Chicken restaurants in Gary, Indiana; the robbery of Kentucky Fried Chicken restaurants in Merrillville and Hammond, Indiana; the robbery of Domino’s Pizza in Merrillville, Indiana; and the robbery of Auto Zone in Merrillville and Hammond, Indiana.
These cases were the result of an investigation by the Federal Bureau of Investigation, the East Chicago Police Department, the Gary Police Department, the Hammond Police Department and the Merrillville Police Department.These cases were prosecuted by Assistant United States Attorney Dean Lanter.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITION:
Patrick O’Quinn, 30, of Fort Wayne, Indiana, was sentenced by District Judge Theresa Springmann to 60 months imprisonment and 4 years of supervised release after pleading guilty to the felony offense of distribution of methamphetamine.This case was the result of an investigation by the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Lesley Miller Lowery.
Wanblee Man Sentenced for Distribution of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wanblee, South Dakota man convicted of Distribution of a Controlled Substance was sentenced on April 2, 2013 by Chief Judge Jeffrey L. Viken, U.S. District Court.
Jordan Long Solider, age 41, was sentenced to 1 year probation, a $250.00 fine, and a $100 special assessment to the Victim Assistance Fund.
On December 14, 2011, Long Solider did knowingly and intentionally distribute marijuana at Wanblee. Long Solider pled guilty to the charge on November 21, 2012.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, and the Federal Bureau of Investigation. Assistant U.S. Attorney Ted L. McBride prosecuted the case.
U.S. Attorney Announces Additional $63,437 Restitution for Crusade for ChildrenRead the Press Release
– U.S. District Court Judge Orders Held Payment Released From Sale Of Defendant Paul Barth’s Former Home
LOUISVILLE, Ky. – The United States District Court Clerk in Louisville, Kentucky will forward an additional restitution payment, in the amount of $63,437, to the WHAS Crusade for Children, announced United States Attorney David J. Hale. The funds are proceeds from the sale of the former home of convicted former McMahon Fire Protection District Chief Paul Barth. The funds are being released at the request of the United States, pursuant to a Court Order entered today by U.S. District Judge John G. Heyburn II.
“This is another significant step in the effort to recover the funds stolen by Paul Barth from the Crusade for Children. This money can now go where it was intended: to help the many children and their families in our community who rely on the important services provided by the Crusade’s charitable donations. A total of $196,608.57 has now been applied toward the $198,277 restitution obligations, and we expect the remaining amount to be paid in full,” stated U.S. Attorney Hale.
Barth pleaded guilty to one count of mail fraud, two counts of wire fraud, and 12 counts of money laundering, on June 21, 2012. He was sentenced on November 19, 2012 in federal court by U.S. District Judge Heyburn to a sentence of 41 months imprisonment, which Barth began serving on December 20, 2012. At sentencing, the Court also ordered Barth to make restitution to his victims, the WHAS Crusade for Children and the McMahon Fire Protection District (MFPD). The restitution order in favor of the Crusade was $190,000, and the order in favor of MFPD was $8,277, for a total of $198,277.
The private sale of Barth’s real estate in Jeffersontown, Kentucky was completed on January 15, 2013. At that time, the United States and American Alternative Insurance Corporation, insurer of McMahon Fire District, each maintained liens on the real estate. In addition to the initial $130,410.56 recovered from the sale of the real estate – which was returned as restitution to the Crusade and the McMahan Fire Department – an additional $66,198.01 from the proceeds of the sale was paid into a registry account held by the U. S. District Court Clerk’s Office in Louisville, Kentucky. The U. S. Attorney’s Office asked the Court to also apply these additional funds to the restitution owed by Barth. American Alternative Insurance Corporation asserted an interest in the proceeds. Today’s Court Order resolved the dispute in favor of the United States’ position.
This case was prosecuted by Assistant U. S. Attorneys David Weiser and Bryan Calhoun. The restitution collection efforts are led by Assistant U. S. Attorney Joe Ansari. The case was investigated by the United States Secret Service - Kentucky Electronic Crimes Task Force, which includes the University of Louisville Police Department, the United States Postal Inspection Service, and the Criminal Investigation Division of the Internal Revenue Service.
Two Participants in Illegal Campaign Contribution Scheme Plead GuiltyRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation, announced that two individuals pleaded guilty today in New Haven federal court to conspiracy charges stemming from a scheme to direct illegal campaign contributions into the campaign of a candidate for the U.S. House of Representatives. JOSHUA NASSI, 34, of Fairfield, and BENJAMIN HOGAN, 33, of Southington, each pleaded guilty before United States District Judge Janet Bond Arterton to one count of conspiracy to make false statements to the Federal Election Commission and to impede the FEC’s enforcement of federal campaign finance laws.
“With today’s guilty pleas, six individuals have now acknowledged their involvement in a scheme to disguise the source of contributions to a federal campaign, contributions that were given to influence legislation pending before the Connecticut General Assembly,” stated U.S. Attorney Fein. “The Department of Justice is committed to prosecuting those who corrupt our system of government, our campaign finance laws and the electoral process.”
“Today’s guilty pleas serve as a reminder that there are consequences for those who undermine the integrity of the legislative process by engaging in a concealed pay-to-play system,” stated FBI Special Agent in Charge Mertz. “The public interest was not being served. The only interests being served were those of the defendants who put their own interests above all. This investigation demonstrates the FBI’s commitment to the investigation of corruption at all levels of government.”
According to court documents and statements made in court, in August 2011, the State of Connecticut applied for a court order enjoining Roll Your Own (“RYO”) smoke shops from continuing to operate without complying with state law governing tobacco manufacturers. RYO smoke shops are retail businesses that sell loose smoking tobacco and cigarette-rolling materials and offer customers the option of paying a “rental” fee to insert the loose tobacco and the rolling materials into a RYO machine, which is capable of rapidly rolling large quantities of cigarettes. Customers did not pay a tax on the RYO cigarettes when rolled by the RYO machines, in contrast to cigarettes purchased over-the-counter.
Fearing that the Connecticut General Assembly would enact legislation harmful to RYO smoke shop owners’ business interests during the 2012 legislative session, HOGAN, Paul Rogers, Harry Raymond “Ray” Soucy, David Moffa and others engaged in a scheme to direct conduit campaign contributions into the campaign of a candidate for the U.S. House of Representatives. The candidate was also a member of the Connecticut General Assembly. As part of the scheme, the co-conspirators recruited multiple individuals to serve as conduit contributors to the campaign. These individuals permitted checks to be written in their own names to the campaign, and Rogers, HOGAN and other conspirators reimbursed them with cash, thereby concealing the fact that RYO smoke shop owners were contributing to the campaign.
At the time, NASSI was the Campaign Manager for the campaign of the candidate for the U.S. House of Representatives, and HOGAN was an employee of Smoke House Tobacco, an RYO smoke shop with two locations in Waterbury, which was co-owned by Rogers. Soucy had a pre-existing relationship with NASSI and the member of the General Assembly who was running for Congress.
In November and December 2011, HOGAN, Rogers, Soucy, Moffa and others made four $2,500 conduit contributions to the Campaign. HOGAN was aware of the purpose of the contributions and that the contributions were being made in the names of others.
On approximately January 31, 2012, the Campaign Committee submitted to the Federal Election Commission (“FEC”) a report of the Campaign Committee’s receipts and disbursements for the period October 1, 2011 through December 31, 2011. The report falsely stated the source and amount of the four $2,500 contributions that were received and deposited by the Campaign Committee during that time period.
On April 3, 2012, Soucy contacted NASSI and told him that RYO owners wanted to provide additional contributions to the Campaign. That same day, the Connecticut General Assembly’s Joint Committee on Finance, Revenue and Bonding voted in favor of Senate Bill 357, legislation that would have deemed RYO smoke shop owners to be tobacco manufacturers under Connecticut law, a designation that would have subjected RYO smoke shop owners to a substantial licensing fee and tax increase. Later that day, Soucy contacted NASSI again to state his displeasure with the vote.
Approximately one week later, Soucy, Rogers and an FBI special agent working in an undercover capacity delivered four $2,500 checks in the names of conduit contributors to NASSI. On April 23, 2012, NASSI advised Soucy that one of the checks had bounced and Soucy indicated that the contributor had been given cash to deposit. NASSI stated that the Campaign needed the check by midnight the following day, and Soucy delivered a replacement check by that deadline. On May 2, 2012, the Campaign submitted a fundraising report to the FEC stating that the four contributions given in April were from the conduit contributors when, in fact, they were not.
Over the next two weeks, NASSI continued to advise Soucy on the status of the RYO legislation and Soucy told NASSI that he would be delivering $10,000 if the legislation died. On May 9, 2012, the legislative session ended and the legislation had not been called for a vote by either chamber of the General Assembly.
On May 14, 2012, Soucy, Rogers and HOGAN met at Smoke House Tobacco where Soucy provided Rogers with $10,000 in cash to be used to reimburse additional conduit contributors. Prior to the meeting, HOGAN had approached Waterbury business owner Daniel Monteiro and an employee of Monteiro’s and asked them to serve as conduit contributors. Monteiro subsequently wrote a $2,500 check to the Campaign, and his employee obtained a bank check in the amount of $2,500. Both were assured that they would be reimbursed. These two checks, and another $2,500 bank check drawn on HOGAN’s own account but not in his name, were given to Soucy at the meeting. Also, at NASSI’s request, Rogers gave Soucy a fourth $2,500 check from a conduit contributor that was payable to a political party. Soucy then delivered the four checks to NASSI at a political event.
On May 16, 2012, after Soucy informed the Campaign that one of the contributions had been made in the name of an RYO shop owner and should not be deposited, Soucy met NASSI and provided him with a replacement $2,500 check in the name of someone who was not affiliated with any RYO shops.
HOGAN and NASSI are scheduled to be sentenced on July 9 and July 16, 2013, respectively. Both face a maximum term of imprisonment of five years and a fine of up to $250,000.
Rogers, Soucy, Moffa and Monteiro have also pleaded guilty to charges related to this scheme and await sentencing.
As to the two other individuals who have been charged as a result of this investigation, U.S. Attorney Fein stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Christopher M. Mattei and Eric J. Glover.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Two Defendants Plead Guilty to Involvement in International Criminal Network Organized to Sexually Exploit ChildrenRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that two additional defendants pleaded guilty Thursday for their involvement in an international criminal network organized to sexually exploit children in connection with their participation in the Dreamboard child exploitation operation. United States District Judge S. Maurice Hicks presided over the hearing.
Christopher Blackford, 28, of Charleston, S.C., pleaded guilty to participating in a child exploitation enterprise and faces 20 years to life in prison, a $250,000 fine, and five years supervised release. According to the stipulated factual basis contained in the plea agreement, Blackford joined Dreamboard Dec. 29, 2009, and placed 84 online bulletin board posts containing child pornography.William Davis, 39, of Bristol, N.H., pleaded guilty to conspiracy to advertise child pornography and faces 15 to 30 years in prison, a $250,000 fine, and five years to life of supervised release for his part in the Dreamboard child exploitation operation. According to the stipulated factual basis contained in the plea agreement, during his time on Dreamboard, Davis posted advertisements offering to distribute child pornography to other members of the board.
Sentencing has been set for July 29, 2013.Blackford and Davis were charged in an indictment unsealed on Aug. 3, 2011. The charges are the result of Operation Delego, an ongoing investigation launched in December 2009 that targeted individuals around the world for their participation in Dreamboard. Dreamboard was a private, members-only, online bulletin board that was created and operated to promote pedophilia and encourage the sexual abuse of very young children in an environment designed to avoid law enforcement detection.
A total of 72 individuals, including Blackford and Davis, have been charged as a result of Operation Delego. To date, 57 of the 72 charged defendants have been arrested in the United States and abroad. Forty-seven individuals have pleaded guilty, and one was convicted after trial. Forty-two of the 48 individuals who have pleaded guilty or found guilty for their roles in the conspiracy have been sentenced to prison and have received sentences ranging between 10 years to life in prison. Three defendants have received life sentences, including one who was convicted at trial. Fifteen of the 72 charged individuals remain at large and are known only by their online identities. Efforts to identify and apprehend these individuals continue. Operation Delego represents the largest prosecution to date in the United States of individuals who participated in an online bulletin board conceived and operated for the sole purpose of promoting child sexual abuse, disseminating child pornography and evading law enforcement.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 U.S. 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 as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case is being prosecuted by Assistant U.S. Attorney John Luke Walker of the Western District of Louisiana and Trial Attorney Keith Becker of CEOS. The Criminal Division’s Office of International Affairs provided substantial assistance. The investigation was conducted by ICE-Homeland Security Investigations, the Child Exploitation Section of ICE’s Cyber Crime Center, CEOS, CEOS’s High Technology Investigative Unit and 35 ICE offices in the United States and 11 ICE attaches offices in 13 countries around the world, with assistance provided by numerous local and international law enforcement agencies across the United States and throughout the world.
The investigation was part of Operation Predator, a nationwide ICE initiative to identify, investigate and arrest those who prey on children, including human traffickers, international sex tourists, Internet pornographers and foreign-national predators whose crimes make them deportable.ICE encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE. This hotline is staffed around the clock by investigators. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be reported anonymously.
Two Anchorage Women plead guilty to drug and weapons chargesRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Anchorage resident pled guilty yesterday in federal court to charges of possession of a controlled substance with intent to distribute and felon in possession of firearms.
Nancie Caridad Modeste, 27, entered her guilty plea before U.S. District Court Judge Sharon L. Gleason. In connection with the guilty plea, Special Assistant U.S. Attorney Erin White Bradley, advised the court that Modeste and her co-defendant, Ashley Helene Hilton, possessed firearms in September 2012. Both defendants have prior felony convictions. Modeste was convicted of felony tampering with evidence in 2005, and Hilton was convicted of second degree felony robbery that same year. Modeste admitted to possessing three semi-automatic pistols, while her co-defendant admitted to possessing only one of the pistols. In addition to the firearms, Modeste also possessed 85 grams of crack cocaine, which she intended to sell to others. On March 8, 2013, Hilton entered a plea of guilty to the charge of felon in possession of a firearm.Modeste is scheduled to be sentenced by Judge Gleason on July 1, 2013, and Hilton’s sentencing is set for May 17, 2013. For Modeste, the law provides for a mandatory minimum sentence of five years in prison, a potential maximum sentence of 40 years, a potential fine of five million dollars, or both.
Hilton faces a maximum sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history of the defendants.
Ms. Loeffler commends the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation of this case.Three Men Handed Massive Sentences in Attempted Cocaine RobberyRead the Press Release
HOUSTON – Three Colombian nationals have been ordered to prison for lengthy terms following multiple convictions including drug conspiracy, firearms charges, identity theft and false claims of citizenship, United States Attorney Kenneth Magidson announced today. The jury returned its verdicts against Carlos Manuel Boria, Francisco Javier Rodriguez, and Edwin Rivera-Otero, on Monday, Oct. 1, 2012, following a five-day trial.
Today, Boria was handed nearly a 41-year-term of federal imprisonment, while Rodriguez and Rivera-Otero will serve nearly 18 and more than 34 years in federal prison, respectively.
All were convicted of aiding and abetting the possession with the intent to distribute cocaine, aiding and abetting the use of a firearm during the commission of a drug trafficking crime, conspiracy to possess with the intent to distribute cocaine and conspiracy to use a firearm. Boria and Rivera-Otero were also convicted of possession of a firearm by a convicted felon. In the midst of trial, Boria and Rivera-Otero also entered guilty pleas to aggravated identity theft and false claims to United States citizenship.
Today, U.S. District Judge Melinda Harmon handed down the sentences. Boria, aka Luis German Rodriguez or Victor, was ordered to serve a total of 405 months in federal prison for all but the aggravated identity theft and the aiding and abetting use of a fireams charges. Those charges resulted in respective terms of 24 and 60 months in federal prison, which must be served consecutively for a total sentence of 489 months. Edwin Rivera-Otero, aka Luis Angel Maldonado Barroso, received a 327-month-term in addition to the mandatory 24 months for the identity theft and 60 months for the firearms charge for a total sentence of 411 months, while Francisco Javier Rodriguez, aka Siver Jesus Cundumi-Bonilla, will serve a total of 211 months in prison – 151 months for all but the aiding the use of a firearm charge which added an additional 60 months.
As illegal aliens, all are expected to face deportation proceedings following release from prison.
In handing down the sentences, Judge Harmon noted that Boria was the organizer who brought others into the conspiracy and that he had been in Houston illegally since 1998. She added that Rivera-Otero occupied a managerial role, was found with a false identification and was arrested less than nine months after release from prison on previous drug conspiracy charges in the Western District of Texas.
At trial, agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) testified that they interdicted a group of seven individuals who were preparing to rob a cocaine stash house of multiple kilograms of cocaine. The group was dressed in clothing identifying them as police and planned to use firearms to subdue any occupants of the stash house. Testimony further revealed agents recovered five firearms, four of which were reported as stolen, as well as multiple zip-ties and additional police clothing.
Testimony revealed insight into the planning stages of the robbery. The robbery crew met at an apartment before the planned robbery and displayed their police clothing, commenting about who looked the most official. Assignments for the home invasion were doled out and the crew was prepared to forcibly rob the stash house for cocaine. It was then, according to agents, that law enforcement intervened and arrested the crew.
Upon pleading guilty to the other charges, Boria and Rivera-Otero admitted that at the time of their arrest, they were in possession of fraudulently obtained identification cards and Social Security numbers.
All will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by the ATF, United States Postal Inspection Service, Homeland Security Investigations, Drug Enforcement Administration and the Houston Police Department. Assistant United States Attorneys Mark E. Donnelly and Richard J. Magness prosecuted the case.
Three Members of Jewelry Theft Ring Plead Guilty to Racketeering ConspiracyRead the Press Release
NEWPORT NEWS, Va. – Members of a violent and highly sophisticated jewelry theft ring pleaded guilty this week for their participation in a racketeering conspiracy.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; and Carl J. Vasilko, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after multiple pleas were entered this week.
Lucesita Argueta, 33, aka “Lucy,” of Richmond, Va., pleaded guilty on Monday before U.S. Magistrate Judge Tommy Miller in the Eastern District of Virginia to racketeering conspiracy. Jose Alfredo Rivero-Garcia, 52, aka “Alfredo” and “Jose Ribero,” of Richmond, pleaded guilty on Thursday before U.S. Magistrate Judge Douglas Miller in the Eastern District of Virginia to racketeering conspiracy. Luis Muchado, 33, of Henrico, Va., pleaded guilty today before U.S. Magistrate Judge Douglas Miller in the Eastern District of Virginia to racketeering conspiracy.According to court documents, Alexander Cuadros-Garcia, aka “Alex,” “Brujo,” “Aleto” and “Manuel Gonzalez”, 37, of Richmond, led an organized criminal group that stole more than $4.6 million in jewelry from victims in Virginia and at least six other states. In March 2012, Cuadros-Garcia, Argueta, Rivero-Garcia, and Muchado were charged along with four other individuals who were members of the Richmond-based ring that regularly conducted lengthy surveillance on jewelry stores to identify vulnerable individuals and then follow their targets back to the individuals’ hotel or home.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
In most of the robberies, several men would suddenly appear as the victims approached or entered their car, punch out the car’s windows, threaten the victims at knife-point and steal the victims’ merchandise. In addition, the robbers would puncture the victims’car tires and steal their cell phones to reduce the chance of pursuit or apprehension. After a successful robbery, members of the ring would travel to New York to sell the merchandise to businessmen who coordinated re-selling the stolen property or melting it down for future use.
At sentencing, Argueta, Rivero-Garcia, and Muchado each face a maximum penalty of 20 years in prison.
This week’s guilty pleas follow the guilty plea of Cuadros-Garcia, on March 29, 2013, and sentencings of Raul Antonio Escobar-Martinez, on March 7, 2013, and William Leandro Herrera-Bohorquez, on March 14, 2013, who both previously pleaded guilty for their roles in the theft ring. Escobar-Martinez and Herrera-Bohorquez were each sentenced to serve 87 months in prison, followed by three years of supervised release.
The investigation of this case was led by the ATF’s Washington Field Division, with the assistance of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the police departments in Williamsburg, Virginia Beach, Henrico County, Chesterfield, Prince William County and Fairfax County in Virginia, along with the Virginia State Police; the Baltimore County, Md., Police Department; the Port Authority of New York and New Jersey; the New York City Police Department; and the police departments in Rutherford, N.J., and Gwinnett County, Ga.; and the Morris County, N.J. Prosecutor’s Office.
Assistant U.S. Attorney Eric M. Hurt of the Eastern District of Virginia and Trial Attorney Jerome M. Maiatico of the Criminal Division’s Organized Crime and Gang Section prosecuted the case on behalf of the United States.The Prosecution of Tax Cases Continues as the April 15 Deadline ApproachesRead the Press Release
DENVER – U.S. Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announce the prosecution of several criminal tax offenders this week in the District of Colorado. As the deadline for filing tax returns is this Monday, federal officials remind citizens that it is important to file complete and accurate tax returns. Those who deliberately evade this obligation will be criminally prosecuted.
Recent tax cases prosecuted in the District of Colorado include the following:
Elizabeth A. Eurioste, age 62, of Aurora, Colorado, who was indicted by a federal grand jury in Denver on April 9, 2013 for aiding and assisting in preparing false Form 1040 U.S. Individual Income Tax Returns for years 2006 and 2007. She willfully advised her clients and prepared for them false tax returns, including false deductions, overstated expenses and false business losses when in fact the taxpayers were not entitled to the deductions which resulted in the under-reporting of taxable income. She falsified losses as much as $158,374 on a single 2007 Form 1040 U.S. Individual Income Tax Return. She was charged with twenty counts of aiding and assisting in the preparing of false tax returns which carries a penalty of not more than 3 years imprisonment, and a fine of up to $250,000 per count.
James Stanley Golob, age 54, of Pueblo, Colorado, was charged by Information on April 11, 2013 with income tax evasion for calendar year 2007. According to the information, Golob took a variety of measures to avoid the assessment and payment of income tax $586,618 of income generated during 2007 through rental properties and through his roofing business, including paying his mortgage, utilities, and other personal expenses from business accounts, titling his home in family member’s name, and filing a false tax return for 2007 in which he falsely reported total compensation for the year of $13,800. Income tax evasion carries a penalty of not more than 5 years imprisonment, and a fine of up to $250,000.
Daniel Dinner, age 61, of Denver, Colorado, was charged by Information on April 12, 2013 with willfully filing a false U.S. individual income tax return for calendar year 2009. According to the information, Dinner’s return falsely reported his net income as $17,495, which resulted in a tax deficiency of approximately $28,810. He faces a penalty of not more than 3 years imprisonment, and a fine of up to $250,000.
Richard K. Sears, age 64, of Parker, Colorado, was formally charged by criminal Information on April 12, 2013 with three counts of willfully failing to file U.S. individual income tax returns. Failing to file U.S. individual income tax returns carries a penalty of not more than 1 year imprisonment, and a fine of up to $100,000 per count.
“As citizens and residents of the United States, we all have an obligation to file tax returns, and to ensure that those tax returns are complete and accurate,” said U.S. Attorney John Walsh.
“Tax evasion is not a victimless crime; we all pay when others attempt to defraud the government,” said Stephen Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office. “This is a reminder that all taxpayers should file complete and accurate tax returns.”
Charges in an indictment and information are allegations and the defendants are presumed innocent unless and until proven guilty.
The criminal cases are being prosecuted by Assistant United States Attorneys Anna K. Edgar, Matthew T. Kirsch, Suneeta Hazra and Tim R. Neff, respectively, all of the U.S. Attorney’s Office Economic Crimes Section for the District of Colorado, with assistance from Department of Justice Trial Attorney Kevin F. Sweeney.
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Ten Bay Area Residents Charged with Federal Passport OffensesRead the Press Release
SAN FRANCISCO – Over the past 18 months, ten Bay Area residents have been charged with federal passport offenses, United States Attorney Melinda Haag and Diplomatic Security Service Special Agent in Charge Dean K. Shear announced.
The individuals are part of more than 225 Bay Area residents who have been charged with or prosecuted for false passport offenses since 2007. According to court records and proceedings, the following 10 defendants all misrepresented their identity on applications for United States passports or committed related offenses in violation of either 18 U.S.C. § 1542, false statement in application for a passport, or 18 U.S.C. § 1028, fraud in connection with identification documents:
Ricardo Montano of San Jose, Calif., is alleged to have applied for a passport using another person’s birth certificate. Montano eluded arrest in September 2011, and remains a fugitive.
Xeres Mari Luciano Garcia Anicete II of San Francisco, Calif., was convicted of possessing a false identification document when he applied for a passport. Anicete II was sentenced to 24 days of imprisonment on September 30, 2011.
Erik Alan Murphy of San Francisco, Calif., was convicted of possessing a false identification document when he applied for a passport. Murphy was sentenced to 30 days of imprisonment on January 27, 2012.
Luse Lilomaiava of San Francisco, Calif., was convicted of possessing a false identification document when she applied for a passport. Lilomaiava was sentenced to three years of probation on July 26, 2012.
Mikhail Nijjar of Oakland, Calif., was convicted of applying for a passport using another person’s name. Nijjar was sentenced to approximately four and one-half months of imprisonment on August 29, 2012.
Marco Matute of San Francisco, Calif., was convicted of attempting to possess a false passport. Matute was sentenced to approximately two and one-half months of imprisonment on September 6, 2012.
Ruben Reyes Diaz of Oakland, Calif, was convicted of possessing a false identification document when he applied for a passport. Diaz was sentenced to approximately 50 days of imprisonment on February 20, 2013.
Richard Emmett Monroe of Santa Rosa, Calif., is alleged to have applied for a passport using another person’s name. Monroe was charged by a felony criminal complaint on January 11, 2013, and is currently in the custody of the Sonoma County Sheriff.
Manuel Sanchez of Salinas, Calif., was convicted of possessing a false identification document when he applied for a passport. Sanchez was sentenced to 10 months of imprisonment on March 14, 2013.
Quentin Chiang of San Jose, Calif., is alleged to have applied for a passport using another person’s name. A Federal grand jury in San Jose returned an indictment against Chiang on March 13, 2013. Chiang is currently in the custody of the United States Marshals while his case proceeds.
The prosecutions are the result of ongoing investigations by DSS.
Anyone with information about false or fraudulently issued passports or entry visas, or the whereabouts of the above fugitives, is encouraged to contact Diplomatic Security Service at (415) 705-1176.
Please note: Charges described in this document contain only allegations against defendants who must be presumed innocent unless and until proven guilty.
Strip Liquor Store Owners Charged with Tax EvasionRead the Press Release
LAS VEGAS, Nev. – The owners of several liquor stores on the Las Vegas Strip have been charged with federal felony tax crimes for failing to report approximately $4 million in income from their stores on their federal individual and corporate tax returns, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Ramzi Suliman and Jeffrey Nowak, are charged in a criminal indictment dated April 10, 2013, with one count of conspiracy to defraud the United States, three counts of assisting in filing false corporate tax returns, and four counts of attempting to evade and defeat tax. They have been summoned to appear for an initial hearing and arraignment on April 18, 2013, at 3:00 p.m. before U.S. Magistrate Judge Carl W. Hoffman. If convicted, they face up to five years in prison on each of the conspiracy and tax evasion counts and up to three years in prison on each false tax return count, and fines of up to $250,000 on each count.
According to the indictment, from about 2006 to present, Suliman and Nowak owned and operated three liquor stores in Las Vegas, Super Liquor South Strip at 3999 S. Las Vegas Boulevard, Super Liquor Mid Strip at 2301 S. Las Vegas Boulevard, and Super Liquor McCarran Village at 384 E. Tropicana Avenue. Suliman and Nowak allegedly diverted receipts from the stores to their own use by presenting false books and records to the corporate accountant for use in preparing corporate and individual tax returns for the businesses and the defendants.
From about 2006 to 2009, Suliman and Nowak allegedly maintained multiple sets of accounting records for the Super Liquor South Strip store, one which was accurate, and one which was false, and another which compared the two. Suliman and Nowak allegedly skimmed some of the cash they received from the Super Liquor South Strip store and agreed not to report it the IRS. Suliman and Nowak omitted the skimmed cash from the accounting records that they provided to their accountant for the preparation of their tax returns. Nowak was primarily responsible for keeping the accounting records, and Suliman was aware of and consented to the skim and occasionally made entries in the records. In total, Suliman and Nowak allegedly failed to report gross receipts and sales from the Super Liquor South Strip store of approximately $4 million for the tax years 2006 through 2009.
The case is being investigated by IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Kathryn C. Newman.
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.Statement of Assistant Attorney General Bill Baer on<br /> Changes to Antitrust Division’s Carve-Out Practice Regarding Corporate Plea AgreementsRead the Press Release
Assistant Attorney General Bill Baer in charge of the Department of Justice’s Antitrust Division issued the following statement today on changes to the division’s carve-out practice regarding corporate plea agreements:
“Over the years, the Antitrust Division’s efforts to investigate and prosecute price fixing and other cartel conduct have produced outstanding results in holding both corporations and individuals accountable for their wrongdoing. We are committed to continuing these efforts and to build on the division’s past successes.
“Going forward, we are making certain changes to the Antitrust Division’s approach to corporate plea agreements. In the past, the division’s corporate plea agreements have, in appropriate circumstances, included a provision offering non-prosecution protection to those employees of the corporation who cooperate with the investigation and whose conduct does not warrant prosecution. The division excluded, or carved out, employees who were believed to be culpable. In certain circumstances, it also carved out employees who refused to cooperate with the division’s investigation, employees against whom the division was still developing evidence and employees with potentially relevant information who could not be located. The names of all carved-out employees were included in the corporate plea agreements, which were publicly filed in the district courts where the charges were brought.
“As part of a thorough review of the division’s approach to corporate dispositions, we have decided to implement two changes. The division will continue to carve out employees who we have reason to believe were involved in criminal wrongdoing and who are potential targets of our investigation. However, we will no longer carve out employees for reasons unrelated to culpability.
“The division will not include the names of carved-out employees in the plea agreement itself. Those names will instead be listed in an appendix, and we will ask the court for leave to file the appendix under seal. Absent some significant justification, it is ordinarily not appropriate to publicly identify uncharged third-party wrongdoers.
“The Antitrust Division will continue to exclude from the non-prosecution protections of corporate plea agreements any employees whose conduct may warrant prosecution. The division will continue to make these decisions on an employee-by-employee basis consistent with the evidence and the Principles of Federal Prosecution. We will continue to demand the full cooperation of anyone who seeks to benefit from the non-prosecution protection of a corporate plea agreement, and will revoke that protection for anyone who does not fully and truthfully cooperate with division investigations.”