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24 May 2013
Ames Man Pleads Guilty to Conspiracy to Distribute HeroinRead the Press Release
DES MOINES, IOWA B On May 23, 2013, Jared Michael Bielenberg, age 23, of Ames, Iowa, pled guilty before United States District Court Judge Stephanie M. Rose to one count of conspiracy to distribute heroin announced United States Attorney Nicholas A. Klinefeldt. According to a written plea agreement, from around January 2010 through July 2011, Bienberg participated in the distribution of at least sixty (60) grams of heroin in and around the Ames area.
Under the plea agreement, Bielenberg faces a sentence of five (5) years’ imprisonment. Judge Rose scheduled sentencing for August 30, 2013, at the U.S. Courthouse in Des Moines, IA.
The investigation was conducted by the Mid-Iowa Drug Task Force, the Ames, Iowa, Police Department, the Story County Sheriff’s Office and the Drug Enforcement Administration, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa. #
(Download Press Release )
42 Individuals Indicted and Arrested for Bank FraudRead the Press Release
The intended loss amounts to approximately $1,205,834.15
SAN JUAN, P.R. –On May 22, 2013, a federal grand jury indicted 42 individuals as a result of an investigation led by the Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HIS), United States Postal Inspection Service (USPIS), the Puerto Rico Police Department (PRPD) and the Puerto Rico Treasury Department, announced today Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The defendants are charged with conspiracy to commit bank fraud, bank fraud, aggravated identity theft and one count of a forfeiture allegation of $580,089.51.
From in or about May 2010 through September 2011, the defendants herein, and others known and unknown to the Grand Jury, did knowingly and willfully conspire and agree with each other to commit an offense against the United States, that is, devising a scheme and artifice to defraud Banco Popular de Puerto Rico (BPPR), Banco Santander de Puerto Rico (BSPR), First Bank, Scotiabank, Banco Bilbao Vizcaya Argentaria (BBVA) and Doral Bank; financial institutions whose deposits were insured by the Federal Deposit Insurance Corporation [FDIC], and to obtain moneys, funds, credits, assets, securities and other property owned by, or under the custody or control of said financial institution, all by means of false and fraudulent pretenses, representations, and promises relating to a material fact.
The USPIS and ICE-HSI conducted a Bank Fraud investigation involving approximately 42 individuals from the Humacao, Puerto Rico area. Since 2010, the organization headed by an individual named Kelvin García-Oquendo engaged in bank fraud, causing losses to several financial institutions in approximately $580,089.51. The intended loss amounts to approximately $1,205,834.15.
According to the indictment, the organization had individuals performing different roles in furtherance of the conspiracy, such as: 1) leaders and organizers; 2) recruiters; 3) facilitators who would either open bank accounts or lend existing bank accounts for the deposit of false and fraudulent checks; 4) purchasers who would use ATM cards of the facilitators to purchase Money Gram Money Orders and Postal Money Orders with the proceeds of the bank fraud scheme; and 5) cashers who would go to different post offices to cash the money orders purchased by others.
Throughout the course of the conspiracy, Kelvin García-Oquendo, Luis Luzunariz-Cruz, and Ramón López-García acted as leaders for the criminal organization. The leaders would create the false and fraudulent checks, determine the amounts to be deposited, and the funds to be withdrawn from the bank accounts in which the false checks had been deposited. Often times, said defendants did other roles, such as recruiting individuals, purchasing and cashing money orders.
At different times in the conspiracy, García-Oquendo, Luzunariz-Cruz, López-García, Georgie García-Oquendo, Joel Bezares-Cruz, Oscar Díaz-Maldonado, David Mestre-Cuadrado, Ernesto J. Bravo-Rivera, Jonathan Sierra-Cotto, Ángel L. Crespo, Carlos Delgado-Gómez, Alvin Rivera, Ruperto Rijos-Pérez, José Sànchez-Díaz, María Del Carmen García acted as recruiters of facilitators, purchasers and cashers for the conspiracy.Codefendants López-García, Alejandro Rodríguez-Arce, Bezares-Cruz, Díaz-Maldonado, Ernesto J. Bravo-Rivera, Crespo, Delgado-Gómez, Rijos-Pérez, Marie Grillasca-Batistini, Edwin Murillo-Rivera, Mayleen Oquendo-García, Yinairy Medina-Castro, Sonia Rivera-Velàzquez, Idalia Santana-Alamo, Gabriel Ramos-Ríos, Héctor Barbosa-Vellón, Jorge M. Agosto, Misha Rodríguez-Lazu, Héctor E. Rivera-Ortiz, Félix Delgado-Vàzquez, Brenda I. Ortiz-Echevarría, Ángel L. Serrano-Valentin, Edgardo Santana-Castro, Ramón Santiago-Matos, William Agosto Díaz, Melitza Naveira-Sanabria, García, Alfonso Capestany, Kenny Quiñones-Vàzquez, Luis Ramos-Pacheco,acted as facilitators for the conspiracy. Their tasks were: (1) open bank accounts and/or lend existing bank accounts for the deposit of false and fraudulent checks, (2) provide account information used to create the false and fraudulent checks, and (3) lend their ATM cards to others for the purchase of money orders with the proceeds of the bank fraud scheme.
Other codefendants known and unknown to the Grand Jury acted as purchasers by using their own and/or borrowed ATM cards to purchase money orders at Money Gram centers and US Postal Service stations with the illegal proceeds of the bank fraud scheme. The cashers for the conspiracy converted to cash Money Gram and Postal money orders that had been purchased with the illegal proceeds of the bank fraud scheme.
The seven defendants that are facing eight counts of aggravated identity theft are: Kelvin García-Oquendo, Luzunaris-Cruz, Sànchez-Díaz, Georgie García-Oquendo, Raul Marte-Colón, López-García and Delgado-Gómez. These defendants, aiding and abetting each other, knowingly transfer, possess and use the name, bank account number and information, as well as the automatic teller machine (ATM) personal identification number (PIN) belonging to another person for purposes of retrieving from said bank accounts funds which were the proceeds of the bank fraud scheme.
“The egregious behavior of those who would exploit our banking system for personal and criminal gain will not be tolerated. We remain committed to investigating and apprehending those who cheat the system,” said US Attorney Rosa Emilia Rodríguez-Vélez. “We are committed to ensuring the integrity of the banking system and to prosecuting those who would undermine it for their personal gain.”
“These arrests are a reflection of the success that comes when federal, state and local law enforcement agencies work together to target criminal organizations and individuals in Puerto Rico,” said Ángel Meléndez, special agent in charge of HSI San Juan. “At HSI, we follow the money trail to identify, disrupt and dismantle the most complicated financial schemes and seize criminal assets. We will continue to aggressively investigate fraudulent financial schemes that put in jeopardy the integrity of our financial system and are often a gateway to further criminal activity.”
“United States Postal Inspectors will continue to aggressively investigate criminals who use the USPS and its products for illegal gain. We are committed to working with our law enforcement partners to investigate and bring to justice those who commit these types of offense.” Maria Kelokates, Inspector in Charge Newark Division, San Juan Field Office.The case is being prosecuted by Assistant United States Attorney Héctor Ramírez-Carbó. Defendants are facing a maximum term of imprisonment of 30 years and fines not to exceed $1,000,000.00. Those defendants charged with aggravated identity theft are facing a mandatory minimum sentence of two years of incarceration consecutive to whatever sentence it’s imposed for the bank fraud charges.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
23 May 2013
Youngstown Man Charged with Threatening the President and First LadyRead the Press Release
A federal grand jury returned a two-count indictment charging a Youngstown man with making threats against the President and First Lady of the United States, Steven M. Dettelbach, United States Attorney for the Northern District of Ohio,.
Frederick Watt, age 33 is accused of making the threats by telephone to Trumbull County 911 operators in Warren, Ohio on March 24, 2013.
If convicted, Watts’ sentence will be determined by the Court after review of factors unique to this case, including his prior criminal record, if any, his role in the offenses and the unique characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Nancy Kelley following an investigation by the United States Secret Service.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Wheat Ridge Doctor Pleads Guilty for the Illegal Distribution of Oxycodone and Knowingly Engaging in A Monetary Transaction Using Property Derived from Proceeds of Unlawful ActivityRead the Press Release
DENVER – Dr. Kevin R. Clemmer, age 59, of Evergreen, Colorado, pled guilty today before U.S. District Court Judge Robert E. Blackburn to illegally distributing Oxycodone, a Scheduled II Controlled Substance, and engaging in a monetary transaction in property criminally derived from proceeds of a specified unlawful activity, U.S. Attorney John Walsh, DEA Rocky Mountain Division Special Agent in Charge Barbra Roach and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced today. Clemmer appeared at the hearing free on bond. Judge Blackburn is scheduled to sentence Clemmer on September 19, 2013 at 10:00 a.m. Clemmer and several co-defendants were indicted on May 16, 2011.
Co-defendant Tina Sheldon, one of Clemmer’s staff assistants, received a sentence of time served and 3 years of supervised release. Defendant Noah Ziegler, who assisted in distributing the Oxycodone, received a sentence of 3 years’ probation. The remaining defendant, Angela Lee, who also helped distribute the Oxycodone, received a sentence of time served and 3 years of supervised release.
According to court records, including the stipulated facts contained in the plea agreement, the underlying investigation in this case began on April 1, 2009, and went through September 17, 2010. Clemmer knowingly and intentionally distributed and dispensed oxycodone, a scheduled II controlled substance, outside the scope of professional practice and not for legitimate medical purposes. During the course of the investigation the defendant did distribute by prescription oxycodone to an undercover officer as well as two co-defendants.
On September 2, 2010, the defendant did prescribe oxycodone to one individual. On September 3, 2010, that individual died. The cause of death is listed as an accidental aspiration of gastric contents associated with oxycodone toxicity. The prescription written by the defendant (with numerous pills missing) was found at the scene of the death, as well as other oxycodone pills which were not prescribed by the defendant. The defendant’s prescription helped contribute to the death of this individual. The death, however, was not a charged offense as part of this investigation or indictment.
On May 20, 2010, the defendant met with an undercover officer. The undercover officer described minimal pain management needs and symptoms which did not require, as part of the scope of professional practice, the prescription of oxycodone. However, the defendant did prescribe 120 pills of 15 milligram oxycodone to the undercover officer after a very limited medical screen and evaluation.
On May 29, 2010, the defendant did purchase a 1999 Lincoln Continental, using cash which was derived from the illegal distribution of a schedule II controlled substance. The monetary transaction, which did affect interstate commerce, was for a value greater than $10,000.
As part of the plea agreement, the defendant agreed not to contest the seizure of a building, currency, funds from bank accounts, two vehicles and gold and silver coins, totaling over $300,000 in ill-gotten proceeds from Clemmer’s criminal scheme.
“Regrettably, unscrupulous doctors in our community are prescribing powerful pain medications not for medical purposes, but for their own personal financial gain, heedless of the addiction and personal ruin they are inflicting on their patients,” said U.S. Attorney John Walsh. “When doctors overprescribe these drugs, they place the public in danger. All too often, accidental overdose deaths are the result, as in this tragic case.”
“The diversion of pharmaceutical drugs has become an epidemic in America,” said DEA Special Agent in Charge Barbra Roach. “The conviction of Dr. Clemmer serves notice to other medical professionals that, regardless of one’s professional status, the illegal distribution of prescription drugs makes one a drug trafficker subject to DEA investigation and federal prosecution.”
“IRS – Criminal Investigation (IRS-CI) is committed to fighting to stop doctors from over prescribing prescription drugs in conjunction with our law enforcement partners,” said Stephen Boyd, Special Agent in Charge of IRS – Criminal Investigation, Denver Field Office. “IRS-CI has the financial investigators and expertise to disrupt these doctors and their organizations to deprive them of their illicit gains.”
As a result of the plea to knowingly and intentionally distributed, dispensed, and possessed with intent to distribute Oxycodone, a Schedule II controlled substance, Clemmer faces not more than 20 years in federal prison, and up to a $1,000,000 fine. As a result of the plea of engaging in monetary transaction affecting interstate commerce, Clemmer faces not more than 10 years in prison, and a fine of up to $1,000,000.
This case was investigated by the Drug Enforcement Administration (DEA) Tactical Diversion Squad and the Internal Revenue Service (IRS) Criminal Investigation, Denver Field Office.
The defendants are being prosecuted by Assistant U.S. Attorney Zachary Phillips with assistance from Assistant U.S. Attorneys Jim Russell and Tonya Andrews with the Asset Forfeiture Unit.
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Wheat Ridge Doctor and Others Indicted for Conspiracy and Illegal Distribution of Prescription MedicationRead the Press Release
“Today the U.S. Attorney’s Office took action against two doctors responsible for illegally prescribing powerful pain killers for non-medical purposes. Overdose deaths were involved in both cases. The first doctor, Kevin Clemmer, pled guilty to illegally distributing Oxycodone and money laundering. A second doctor, Joseph Ferrara, was indicted and arrested on Conspiracy and illegally distributing prescription medication. These actions are part of an ongoing U.S. Attorney and federal law enforcement emphasis on combating “pill mills” throughout the state of Colorado, in conjunction with the Colorado Attorney General’s Office and state and local law enforcement.”
John Walsh, U.S. Attorney, District of Colorado
WHEAT RIDGE DOCTOR AND OTHERS INDICTED FOR CONSPIRACY AND ILLEGAL DISTRIBUTION OF PRESCRIPTION MEDICATION
Dr. Ferrara faces Bankruptcy Fraud charges and he and his co-defendants also charged with Money Laundering
DENVER – Dr. Joseph Ferrara and five others were indicted by a federal grand jury in Denver this week on charges related to the illegal distribution of prescription medication and money laundering, U.S. Attorney John Walsh, DEA Special Agent in Charge Barbra Roach and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. Ferrara had a medical practice in Wheat Ridge and in Dillon. At least one patient who received drugs from Ferrara died as a result. Ferrara and Keith Schwartz were arrested this morning in Summit County. Karyne Smith, Karen Plaia and Melissa Toothman were arrested in Metro Denver. All of these defendants made initial appearances in U.S. District Court in Denver this afternoon, where they were advised of the charged pending against them as well as their rights. Lauren Schwartz is out of state, and is in the process of arranging her surrender.
According to the indictment, beginning on May of 2011, and continuing until February of 2013, defendants Dr. Joseph Ferrara, of Dillon, Colorado, in conjunction with co-conspirators Keith Schwartz, Lauren Schwartz, Karen Plaia, Karyn Smith, Melissa Toothman and others known and unknown to the Grand Jury, knowingly conspired and agreed to work interdependently to dispense and distribute, or facilitate the dispensing and distribution of controlled substances to patients at times and in circumstances outside the usual course of professional medical practice, and for a purpose other than legitimate medical purpose, with death resulting from the use of the controlled substances.
During the course of the scheme, Dr. Ferrara allegedly prescribed drugs such as: oxycodone, morphine, methadone, oxymorphone, hydromorphone, hydrocodone, amphetamines, carisoprodol, alprazolam, clonazepam, lorazepam, triazolam, and zolpidem tartrate to patients without determining a sufficient medical necessity for the prescription of these controlled substances. In concert with his co-conspirators, the doctor dispensed and distributed these drugs to patients in quantities and dosages that would allow patients to abuse, misuse, and become addicted to them, while failing to adequately address the misuse and abuse of the prescribed controlled substances by patients.
Dr. Ferrara and his co-conspirators, worked interdependently to obtain payment for services rendered outside the course of usual professional practice by taking cash, checks, and credit cards from those he distributed to. Insurance was not accepted. The dispensing and distribution of controlled substances to patients were in such high quantities, in such combinations, and at such levels that retail pharmaceutical outlets called the Drug Enforcement Administration to report suspicious prescribing practices.
Further, the indictment alleges that the defendants and co-conspirators did knowingly conduct and conceal the true nature of their financial transactions, concealing proceeds to facilitate, promote and expand the drug distribution operation for financial gain, using the concealed proceeds from the unlawful sale and distribution of the narcotics and related activities to acquire personal assets. In one instance Dr. Ferrara engaged in a cash purchase of a 2010 Honda Crosstour.
Beginning on December 13, 2010, and continuing through March 26,2012, Ferrara devised, intended to devise, and participated in a scheme to defraud the Bankruptcy Court, and his creditors in relation to a bankruptcy proceeding by taking a variety of steps to conceal his ownership and control of substantial assets from the Bankruptcy Court, the Chapter 7 trustee, and his creditors.
The indictment includes an asset forfeiture allegation, which states: As a result of the foregoing offenses, the defendants shall forfeit to the United States any and all property, real or personal, constituting or derived from any proceeds obtained directly or indirectly as a result of the violations and any and all property used or intended to be used in an y manner or part to commit and to facilitate the commission of the criminal violations, including but not limited to a money judgment in the amount of proceeds obtained as a result of the foregoing offenses, for which the defendants are joint and severally liable.
Ferrara is charged with one count Conspiracy to distribute and dispense controlled substances resulting in the death of an individual (punishable by not less than 20 years to life); six counts of Distribution and Dispensing of a controlled Substance and Aiding and Abetting the same (punishable up to 20 years per count); one count Distribution and Dispensing of a Controlled Substance and Aiding and Abetting the same resulting in the death of an individual (punishable by not less than 20 years to life); four counts Use of a Telephone to Facilitate Drug Crime (punishable up to 4 years per count); two counts of Conspiracy to Commit Money Laundering (punishable up to 20 years per count); twenty seven counts of Money Laundering (punishable up to 20 years per count); and four counts of Bankruptcy Fraud (punishable up to 5 years per count). Ferrara’s co-defendants face a variety of the charges listed above.
“The illegal distribution of prescription narcotics is becoming an epidemic,” said U.S. Attorney John Walsh. “Doctors who are improperly prescribing medication outside the scope of their practice for profit should be put on notice that they will face criminal penalties.”
“Prescription drug misuse and abuse is a rapidly growing problem leading to addiction, suffering, and even death for many people,” said DEA Special Agent in Charge Barbra Roach. “While the vast majority of doctors offer healing and compassionate care to their patients, there remain some who violate their oath and the law. DEA and our law enforcement partners will continue to identify, investigate, and prosecute doctors and other medical professionals who abuse their trust and power by engaging in criminal drug trafficking of prescription drugs.”
“Prescription drug abuse is a serious problem and IRS Criminal Investigation is committed to investigate along with our law enforcement partners those individuals that are responsible for the illegal distribution of prescription medicines and deprive them of their ill-gotten gains,” said Stephen Boyd, Special Agent in Charge of IRS Criminal Investigation, Denver Field Office.
This case was investigated by the Drug Enforcement Administration and the IRS Criminal Investigations.
The defendants are being prosecuted by Assistant U.S. Attorney M.J. Menendez and Special Assistant U.S. Attorney Alison Goldenberg.
The charges contained in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
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Waylon Ronald Burns Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on May 23, 2013, before U.S. District Judge Donald W. Molloy, WAYLON RONALD BURNS, a 35-year-old resident of Lame Deer and an enrolled member of the Northern Cheyenne Tribe, was sentenced to a term of:
Prison: 188 months
Special Assessment: $100
Supervised Release: 20 years
BURNS was sentenced in connection with his guilty plea to attempted aggravated sexual abuse.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On August 4, 2012, the victim and some friends were drinking and driving around Lame Deer. At some point, BURNS joined them. BURNS started acting weird and aggressive and everyone but the victim got out of the car. The victim and BURNS eventually drove to the rodeo grounds. BURNS physically assaulted the victim and then raped her.
When interviewed, BURNS admitted that he had sex with the victim, but claimed it was consensual.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that BURNS will likely serve all of the time imposed by the court. In the federal system, BURNS does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Bureau of Indian Affairs.
Warrensburg Man Indicted for Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Warrensburg, Mo., man has been indicted by a federal grand jury for attempting to distribute child pornography over the Internet.
Jonathan R. Gilbert, 24, of Warrensburg, was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo., on Tuesday, May 21, 2013.
The federal indictment alleges that Gilbert attempted to distribute child pornography over the Internet on Sept. 14, 2011. Gilbert is also charged with receiving child pornography over the Internet on Oct. 9, 2011 and with possessing child pornography on Oct. 20, 2011.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by the FBI Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Wamblee Tonka Rowland Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on May 23, 2013, before U.S. District Judge Donald W. Molloy, WAMBLEE TONKA ROWLAND, a 34-year-old resident of Lame Deer and an enrolled member of the Northern Cheyenne Tribe, was sentenced to a term of:
Prison: 24 months
Special Assessment: $100
Supervised Release: 3 years
ROWLAND was sentenced in connection with his guilty plea to assault with a dangerous weapon.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On July 16, 2012, the victim was at her home in Lame Deer, which is within the boundaries of the Northern Cheyenne Indian Reservation. ROWLAND and the victim got into a verbal argument that escalated to the point where ROWLAND threw rocks at her. ROWLAND threatened to kill the victim and told her that he was going to get his gun. ROWLAND then walked to his house, in the same neighborhood, and retrieved a shot gun. He loaded the gun with shells, walked toward the victim, and confronted her with the gun. He cocked the gun and pointed it at her. The victim retreated into her residence but, once inside, remembered that her children were outside and went back out to retrieve her kids. The victim was afraid that ROWLAND would shoot her in front of her kids.
ROWLAND's common law wife was outside of ROWLAND's house and witnessed the altercation with the victim. She tried to calm ROWLAND down, but ROWLAND's response was to point the gun at her. When interviewed, though, ROWLAND's common-law wife said that she was not afraid because the gun was not operational and she believed that she could calm ROWLAND down.
The police were called by neighbors who also witnessed the altercation. ROWLAND retreated into his house, hid the shotgun, and then hid under a table. He was arrested while trying to hide. He had shells in his pocket. The shot gun was seized.
Law enforcement test fired the shotgun and confirmed that it is operational.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that ROWLAND will likely serve all of the time imposed by the court. In the federal system, ROWLAND does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Two Convicted by New Jersey Federal Jury for Scheme to Rob Drug Dealers and Sell Their CocaineRead the Press Release
CAMDEN, N.J. – Two men who plotted to rob a drug stash house in order to sell the stolen cocaine were convicted today by a federal jury in New Jersey of crimes related to the scheme, U.S. Attorney Paul J. Fishman announced.
Ralph Dennis, 35, and Terrance Hardee, a/k/a “Fat Cat,” 36, both of Philadelphia, were each convicted of one count of conspiracy to commit robbery and one count of conspiracy to possess more than 5 kilograms of cocaine with intent to distribute. Dennis was also found guilty of using and carrying a firearm during a crime of violence. The jury returned the verdict on the second day of deliberations following an approximately three-week trial before U.S. District Judge Joseph E. Irenas in Camden federal court.
According to the evidence at trial:
In June and July of 2012, Dennis and Hardee engaged in the planning of a gunpoint drug stash house robbery. They prepared to steal multiple kilograms of cocaine from the drug dealers at the location, then sell it themselves to make a profit.
During the investigation, Dennis was recorded discussing his willingness to kill anyone they found inside the house as they were robbing it. Hardee was recorded talking about his role – tying the house’s occupants up with zip ties.
Special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) arrested the pair when they showed up in Maple Shade, N.J., on July 16, 2012, to head to the robbery location, Dennis carrying a gun. Dennis and Hardee also brought gloves, and zip ties were found in the car they drove to Maple Shade.
At sentencing, the defendants face a maximum potential penalty of 20 years in prison on the robbery conspiracy charge and a mandatory minimum penalty of 10 years and a maximum of life in prison on the cocaine distribution charge. Additionally, Dennis faces a mandatory minimum of five years in prison – consecutive to the sentence imposed for the robbery conspiracy – and a maximum of life in prison for the gun offense. Each count also carries a maximum $250,000 fine. A sentencing date has not yet been set.
U.S. Attorney Fishman credited ATF special agents in Cherry Hill, N.J., under the direction of Special Agent in Charge Thomas J. Cannon, with the investigation leading to today’s convictions.
The government is represented by Assistant U.S. Attorneys Jacqueline M. Carle and Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel:Ralph Dennis: Assistant Federal Public Defenders Thomas Young & Christopher O’Malley Esqs., Camden
Terrance Hardee: David Rudenstein, Esq., PhiladelphiaTwenty-One People Arrested in Huntsville-based Drug-Trafficking ConspiracyRead the Press Release
NOTE: Release has been updated since press conference. There is also one correction included – Christopher David "Chris Wheeler" Sanders is from Decatur and Christopher Ike "Coota" Okafor is from Huntsville. Please note the motion to dismiss that is attached. Defendant Trevor Marchel Young is to be dismissed from the indictment. Please see links:
Cortez Carr et al Indictment
Motion to Dismiss Young - FiledHUNTSVILLE – Federal agents and members of a Madison and Morgan County drug task force today arrested 21 people charged as members of a drug-trafficking conspiracy operating out of Huntsville since at least 2010, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Richard D. Schwein Jr. and Madison-Morgan County High Intensity Drug-Trafficking Area Task Force Commander, Sgt. Dewayne McCarver.
The defendants are part of overlapping drug rings, one distributing powder and crack cocaine and the other, marijuana, in Madison County, according to a 34-count indictment unsealed following today's arrests. Twenty of the defendants were arrested in North Alabama and one defendant turned himself in in Atlanta. Authorities continue to pursue a 22nd defendant, known as "Renay."
Brothers CORTEZ DEAUNDRA "Tez" CARR, 33, and TYRIS TERVILLE "Black" CARR, 38, both of Huntsville, are charged in the cocaine and the marijuana conspiracies. The multi-agency investigation, begun early in 2010, identifies Cortez Carr as the leader of the illegal drug distribution rings.
"This investigation has successfully taken down a major cocaine- and marijuana-trafficking organization operating in Northern Alabama," Vance said. "This is a sterling example of how federal, state and local law enforcement, working together, are able to successfully dismantle narcotics smuggling organizations and reduce the availability of illegal drugs on the streets," Vance said.
"Today's arrests dismantle a narcotics operation that spread from Atlanta to Birmingham, as well as from Huntsville and Decatur to Gadsden," Schwein said. "This type of investigation and enforcement activity between the agencies involved shows when numerous agencies work together, as they did in this case, it has a significant impact and can help to restore an entire neighborhood. The law abiding citizens who live in the areas targeted in this morning's investigations have their neighborhood back."
"This is a perfect example of the impact that can be made when agencies work together," McCarver said. "This case will have a lasting positive impact on the cities of Huntsville, Madison and Decatur, by removing a major drug-trafficking operation from this area. I am proud to have worked with all of the agencies involved."
Cortez Carr is charged, individually, with separate counts of possessing with intent to distribute powder cocaine and crack cocaine, and with possessing a firearm – a Bryco Arms 9mm pistol and a FEG .45-caliber pistol – in furtherance of a drug-trafficking crime, all on March 15, 2010. Cortez Carr also is charged, individually, with six counts of distributing more than 28 grams of crack cocaine and one count of distributing more than 280 grams of crack on various dates between August 2012 and December 2012.
Cortez Carr is charged, along with his brother, Tyris Carr, and their cousin, LACARL CARR, 37, of Huntsville, with possessing with intent to distribute more than 500 grams of cocaine in Madison County on Jan. 14. LaCarl Carr faces one count of possessing a firearm – a derringer .38-caliber – in furtherance of cocaine trafficking on that date.Along with various other defendants in the conspiracy, Cortez Carr is charged with three counts of using a telephone, in November 2012 and December 2012, to further the marijuana conspiracy. He faces 13 counts, with various other defendants, of using a telephone between December 2012 and January 2013, to further the cocaine conspiracy.
Of the 22 defendants charged in the April 24 indictment returned by a federal grand jury in Birmingham, 20 are from Huntsville. Along with the Carrs they are: brothers TOMMY "Roland" CHILDS III, 51, and ERIC DEWAYNE "Twin" or "Look-a-like" CHILDS, 42; CHRISTOPHER IKE "Coota" OKAFOR, 29; COREY TODD "Black Boy" THOMPSON, 25; GREGORY LAVAR "Greedy G" HAMPTON, 35; MICHAEL WAYNE BURTON, 45; TRAVIS SANITAL WASHINGTON, 31; DEONTA LAJUAN TURNER, 30; TERRENCE LAVELLE "Wolf" MELTON, 36; JOHN EARNEST MOORE JR. 27; CHARLES COLVIN COPELAND, 44; CORNELIUS ANTONIO CARTER, 30; FREDERICK LEE MAPLES, 46; MONICA CHAMPALER TONEY, 35; DARRAL DEMETRIAS WALTER, 38; KEENAN JERMAINE SHEPHARD, 33; and an unidentified defendant, referred to in the indictment as FNU "Renay" LNU, age unavailable.
The two defendants from outside Huntsville are: QUINCY TYWY ELLINGTON, 36, of Atlanta, and CHRISTOPHER DAVID "Chris Wheeler" SANDERS, 33; of Decatur.
The three Carrs, Eric and Tommy Childs, Sanders, Thompson, Hampton, Burton, Washington, Ellington, Turner, Melton, Moore, Copeland, Carter, Young, Maples, Toney and Walter are charged in Count One of the indictment with the conspiracy to possess and distribute more than 280 grams of crack cocaine on March 15, 2010.
Cortez and Tyris Carr, Melton, Shephard, Okafor and Renay are charged in Count Two with the conspiracy to possess and distribute marijuana.
Okafor, individually, is charged with possessing with intent to distribute marijuana, and with possessing a firearm – a Beretta .22 LR pistol – in the furtherance of the drug-trafficking crime, on Feb. 7. He also is charged with being a felon in possession of a firearm.
Conspiring to possess and distribute more than 280 grams of crack cocaine carries a maximum penalty of life in prison and a $4 million fine. Conspiracy to possess and distribute marijuana carries a maximum penalty of five years in prison and a $250,000 fine. Possessing with intent to distribute more than 500 grams of cocaine carries a minimum mandatory prison sentence of five years and a maximum sentence of 40 years in prison and a $5 million fine. Possessing a firearm in furtherance of a drug-trafficking crime carries a minimum mandatory sentence of five years in prison, which must be served consecutively to any other sentence imposed for the crime.
The FBI, Madison-Morgan County HIDTA Task Force, Huntsville, Madison and Decatur police departments, Alabama Alcoholic Beverage Control Board, Alabama Department of Public Safety, federal Drug Enforcement Administration, and Madison County and Morgan County sheriff's departments and district attorneys' offices investigated the case. Assistant U.S. Attorney Terence O'Rourke is prosecuting the case.
The public is reminded that an indictment contains only charges. Defendants are presumed innocent and it is the government's obligation to prove guilt beyond a reasonable doubt at trial.
Twelve Defendants Sentenced for Murder/Marijuana Grow House ConspiracyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and J.D. Patterson, Director, Miami-Dade Police Department, announced the sentencings of defendants Derrick Santiesteban, of Miami, Juan Felipe Castañeda, of Miami, Alexander Santiesteban, of Miami, German Silvestro, of Miami, David Silva, of Miami, Francisco Javier Diaz, of Miami-Dade, Alejandro Pimentel, of Miami, John Villalonga, of Miami-Dade, Raul Fabian Ramirez, Jr., of Miami, Yadira Santiesteban, of Miami, Dayana Castellanos, of Miami, and Estrella J. Mijares, of Miami, before U.S. District Judge K. Michael Moore.
According to court documents, the defendants operated an extensive network of hydroponic marijuana grow houses throughout South Florida. In 2009, a large quantity of marijuana belonging to the organization was stolen. Members of the organization set out to find the people responsible for the theft. On June 28, 2009, Derrick Santiesteban, Gilberto Santiesteban, Jr., Norge Manduley, and Juan Felipe Castañeda kidnapped the individual who they thought was responsible for the theft of the marijuana. During the abduction, the individual was shot and killed.
Derrick Santiesteban was sentenced to life in prison on charges of drug, money laundering, and kidnapping with death resulting.
Juan Felipe Castañeda was sentenced to 360 months in prison, to be followed by 5 years of supervised release, on charges of conspiracy to possess with the intent to distribute marijuana.
Alexander Santiesteban was sentenced to 262 months in prison, to be followed by 5 years of supervised release, on charges of conspiracy to possess one thousand (1,000) or more marijuana plants with the intent to distribute and conspiracy to commit money laundering.
German Silvestro was sentenced to 144 months in prison, to be followed by 5 years of supervised release. David Silva, Francisco Javier Diaz, Alejandro Pimentel, and John Villalonga were each sentenced to 120 months in prison, to be followed by 5 years of supervised release. Raul Fabian Ramirez, Jr. was sentenced to 46 months in prison, to be followed by 2 years of supervised release. Each of these defendants previously pled guilty to Count 1 of the indictment, charging them with conspiracy to possess 1,000 or more marijuana plants with the intent to distribute.
Yadira Santiesteban was sentenced to 70 months in prison, to be followed by 3 years of supervised release. Dayana Castellanos was sentenced to 37 months in prison, to be followed by 2 years of supervised release. Estrella J. Mijares was sentenced to 37 months in prison, to be followed by 1 year of supervised release. Each of these defendants pled guilty to one count of conspiracy to commit money laundering.
In addition, the following individuals previously pled guilty and are awaiting sentencing:
Gilberto Santiesteban, Jr., of Miami, previously pled guilty to conspiracy to possess with the intent to distribute marijuana, conspiracy to commit money laundering, and conspiracy to commit kidnapping (Counts 1, 2, and 3). Sentencing is scheduled for July 18, 2013 at 2:00 p.m. before U.S. District Judge K. Michael Moore. At sentencing, the defendant faces a minimum mandatory term of 10 years in prison, and a maximum term of up to life imprisonment for Count 1; a maximum term of 20 years in prison for Count 2; and a maximum term of up to life in prison for Count 3.
Darvis Santiesteban, of Miami, previously pled guilty to Counts 1 and 2 of the indictment. Count 1 charged him with conspiracy to possess one thousand (1,000) or more marijuana plants with the intent to distribute and Count 2 charged him with conspiracy to commit money laundering. Sentencing is scheduled for July 18, 2013 at 2:00 p.m. before U.S. District Judge K. Michael Moore. At sentencing, the defendant faces a minimum mandatory term of 10 years in prison, and a maximum term of up to life imprisonment on Count 1; and a maximum term of 20 years in prison on Count 2.
Gilberto Santiesteban, Sr., of Miami, previously pled guilty to Count 1 of the indictment charging him with conspiracy to possess 1,000 or more marijuana plants with the intent to distribute. Sentencing is scheduled for July 18, 2013 at 2:00 p.m. before U.S. District Judge K. Michael Moore. At sentencing, the defendant faces a minimum mandatory sentence of 10 years in prison, and a possible maximum term of up to life in prison.
Norge Manduley, of Hialeah, was convicted at trial of one count of conspiracy to possess less than one hundred (100) marijuana plants with the intent to distribute. Sentencing is scheduled for July 30, 2013 before U.S. District Judge K. Michael Moore. At sentencing, Manduley faces a statutory maximum sentence of up to 20 years imprisonment.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and Miami-Dade Police Department. The case is being prosecuted by Assistant U.S. Attorneys William Athas and Pat Sullivan.
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.
Truth or Consequences Couple Arrested on Federal Prescription Drug Trafficking ChargesRead the Press Release
ALBUQUERQUE – Michael Capps, 52, and his wife Roberta Capps, 52, both of Truth or Consequences, N.M., appeared in Las Cruces federal court this morning on criminal complaints charging them with conspiracy and the unlawful distribution of the prescription painkillers Oxymorphone and Oxycontin. Roberta Capps waived a preliminary hearing and entered a not guilty plea to the charges against her before being released on conditions of release pending trial. Michael Capps remains in custody pending a preliminary hearing and a detention hearing scheduled for May 29, 2013.
Michael and Roberta Capps were arrested on May 21, 2013, on criminal complaints alleging that they unlawfully distributed quantities of Oxycontin and Oxymorphone to a DEA confidential source on three occasions between Dec. 10, 2012 and Jan. 15, 2013. The complaints allege that Michael and Roberta Capps sold 30 10mg pills of Oxycontin to the confidential source for $340 on Dec. 10, 2012, at the couple’s residence in Truth or Consequences.
According to the complaints, on Dec. 18, 2012, Roberta Capps allegedly sold 60 15mg pills of Oxycontin and five 10mg pills of Oxycontin to the confidential source for $950. During the transaction, Roberta Capps allegedly stated that Michael Capps had obtained the pills from a pharmacy and was aware of the transaction between her and the confidential source.
On Jan. 15, 2013, Roberta Capps allegedly sold 48 10mg pills of Oxycontin, five 60mg pills of Oxycontin and 60 20mg pills of Oxymorphone to the confidential source in Truth or Consequences. During a recorded conversation, Roberta Capps allegedly stated that Michael Capps had obtained the Oxymorphone and she had obtained the Oxycontin that she sold to the confidential source. Roberta Capps also allegedly acknowledged knowing that it was a felony offense to sell the pills.
If convicted of the offenses charged in the criminal complaints, Michael and Roberta Capps each face a maximum penalty of 20 years in prison. Charges in criminal complaints are merely accusations and all defendants are presumed innocent unless found guilty beyond a reasonable doubt.
These cases were investigated by the Las Cruces office of the DEA and the Truth or Consequences Police Department and are being prosecuted by Assistant U.S. Attorney Amanda L. Gould of the U.S. Attorney’s Las Cruces Branch Office.
Trumbull Resident Sentenced to Federal Prison for Fraud OffensesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ANGELINA VELASQUEZ, 46, of Trumbull, was sentenced today by United States District Judge Janet C. Hall in New Haven to 15 months of imprisonment, followed by three years of supervised release, for two fraud offenses.
According to court documents and statements made in court, VELASQUEZ was employed as the payroll and human resources coordinator for a victim company. From approximately September 2007 to November 2009, VELASQUEZ manipulated her employer’s payroll system and caused the company to generate approximately 350 unauthorized payroll checks, totaling approximately $247,570, in the names of 87 different employees at the company. She then intercepted the checks before delivery to the employees, forged their signatures on the back of the checks, deposited and cashed the checks at two banks and used the proceeds for her own personal use.
In addition, VELASQUEZ assisted individuals by preparing and submitting personal income tax returns. In 2009, she defrauded an individual out of her tax refund of $5,146.
On February 28, 2013, VELASQUEZ pleaded guilty to one count of bank fraud.
This matter was investigated by the Shelton Police Department, the United States Secret Service, and the Connecticut Financial Crimes Task Force, which includes federal, state and local law enforcement agencies. The case was prosecuted by Assistant United States Attorney Neeraj N. Patel.
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(203) 821-3722 [email protected]Three Defendants Plead Guilty to Participating in Ambush Murder and Attempted Murder of Ice Agents in MexicoRead the Press Release
Julian Zapata Espinoza, also known as “Piolin,” 32, pleaded guilty today to the murder of U.S. Immigration and Customs Enforcement (ICE) Special Agent Jaime Zapata and the attempted murder of ICE Special Agent Victor Avila in Mexico. The court also unsealed today the guilty pleas of three other defendants on related murder, attempted murder, racketeering and accessory charges.
The guilty pleas, in the U.S. District Court for the District of Columbia, were announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney for the District of Columbia Ronald C. Machen Jr.; Assistant Director Ronald T. Hosko of the FBI Criminal Investigative Division; and ICE Director John Morton.
As set forth in court filings, on Feb. 15, 2011, Espinoza, a commander in Los Zetas Cartel, a heavily armed Mexican narco-trafficking cartel and transnational criminal organization, attempted to hijack Special Agent Zapata’s and Special Agent Avila’s armored government vehicle as the agents were driving on Highway 57 in San Luis Potosi. Two armed Zetas hit squads, or “estacas,” forced the agents off the road and surrounded their vehicle. Espinoza, the leader of the attack, ordered the agents to exit their vehicle. When the agents refused and attempted to identify themselves as American diplomats from the U.S. Embassy, the hit squad members fired weapons near and into the vehicle, striking both agents. Estaca members continued to fire at the vehicle as the agents attempted to escape by driving away. Special Agent Zapata died as a result of the gunshot wounds he suffered during the attack, and Special Agent Avila was seriously injured.On April 19, 2011, Espinoza was indicted by a federal grand jury in the District of Columbia on multiple counts pertaining to the murder of ICE Special Agent Zapata and the attempted murder of ICE Special Agent Avila and, on Dec. 20, 2011, was extradited from Mexico to the United States. This morning, the defendant entered a guilty plea before Chief Judge Royce C. Lamberth to the murder of Special Agent Zapata, an officer and employee of the United States, and the attempted murder of Special Agent Avila, an officer and employee of the United States.
In addition to the announcing the guilty plea of Espinoza, prosecutors also announced related guilty pleas by three other defendants. Ruben Dario Venegas Rivera, also known as “Catracho,” 25, pleaded guilty on Aug. 1, 2011, to federal charges concerning the murder of Special Agent Zapata and attempted murder of Special Agent Avila. Jose Ismael Nava Villagran, also known as “Cacho,” 30, pleaded guilty on Jan. 4, 2012, also to federal charges concerning the murder and attempted murder of the ICE agents. Francisco Carbajal Flores, also known as “Dalmata,” 38, pleaded guilty on Jan. 10, 2012, to conspiracy to conduct the affairs of an enterprise through a pattern of racketeering activity and to being an accessory after the fact to the murder and attempted murder of the ICE agents.
As part of their guilty pleas, Espinoza, Rivera and Villagran admitted to being members of a Los Zetas hit squad and to participating directly in the Feb. 15, 2011, ambush of the two Special Agents. The fourth defendant, Flores, acknowledged assisting Zetas members after the Feb. 15 attack.
All four defendants face a maximum sentence of life in prison. No sentencing date has been set for the defendants.
“Special Agent Zapata died for his country in a senseless and brutal attack, and Special Agent Avila was grievously wounded in the same ambush by members of Los Zetas Cartel,” said Acting Assistant Attorney General Raman. “Both men are American heroes who dedicated themselves to protecting the United States, only to be attacked by vicious thugs. I hope that today’s announcement of guilty pleas by the Cartel members directly responsible for the attack brings some measure of justice to the victims and their families. A team of dedicated prosecutors and investigators has worked day and night to identify and hold these defendants accountable. Our work is far from over, and we will continue to devote our full resources and work with our law enforcement partners here and abroad to investigate and prosecute those responsible.”
“The deadly ambush of two highly dedicated and courageous American law enforcement officers by the Los Zetas drug cartel demanded an intense, dedicated and forceful response,” said U.S. Attorney Machen. “The message to any criminal who dares to commit an act of violence against a U.S. law enforcement officer serving in a foreign land is unmistakable - if you commit such a heinous crime, we will not forget, we will not falter, and we will not rest until you are brought to justice. Our work in this critical case will continue until all of those who participated in the murder of Special Agent Zapata and attempted murder of Special Agent Avila are held accountable.”
“With the assistance of our law enforcement partners, assailants responsible for murdering Agent Zapata and wounding Agent Avila have been brought to justice,” said FBI Assistant Director Hosko. “While there is nothing we can do to change what happened that fateful day in Mexico, let it be known that an attack against any federal agent serving his or her country is an attack on all federal agents and as such remains a priority for the FBI until those responsible are brought to justice.”
“Today’s announcement is a very important milestone in the effort to see that justice is served in the murder of ICE Special Agent Zapata and the attempted murder of ICE Special Agent Victor Avila,” said ICE Director Morton. “Both men were trying to make the world a safer place, and today’s result is a very welcome step to honor their service and sacrifice.”
This case is being investigated by the FBI, with substantial assistance from ICE, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Customs and Border Protection, the Diplomatic Security Service and the U.S. Marshals Service.
The case is being prosecuted by the Organized Crime and Gang Section and the Narcotic and Dangerous Drug Section of the Justice Department’s Criminal Division and the U.S. Attorney’s Office for the District of Columbia. The Office of International Affairs of the Justice Department’s Criminal Division provided substantial assistance.Three Defendants Plead Guilty to Participating in Ambush Murder and Attempted Murder of ICE Agents in MexicoFourth Defendant Pleads Guilty as Accessory After the Fact to AmbushRead the Press Release
WASHINGTON – Julian Zapata Espinoza, also known as “Piolin,” 32, pleaded guilty today to the murder of U.S. Immigration and Customs Enforcement (ICE) Special Agent Jaime Zapata and the attempted murder of ICE Special Agent Victor Avila in Mexico. The court also unsealed today the guilty pleas of three other defendants on related murder, attempted murder, racketeering and accessory charges.
The guilty pleas, in the U.S. District Court for the District of Columbia, were announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney for the District of Columbia Ronald C. Machen Jr.; Assistant Director Ronald T. Hosko of the FBI Criminal Investigative Division; and ICE Director John Morton.
As set forth in court filings, on Feb. 15, 2011, Espinoza, a commander in Los Zetas Cartel, a heavily armed Mexican narco-trafficking cartel and transnational criminal organization, attempted to hijack Special Agent Zapata’s and Special Agent Avila’s armored government vehicle as the agents were driving on Highway 57 in San Luis Potosi. Two armed Zetas hit squads, or “estacas,” forced the agents off the road and surrounded their vehicle. Espinoza, the leader of the attack, ordered the agents to exit their vehicle. When the agents refused and attempted to identify themselves as American diplomats from the U.S. Embassy, the hit squad members fired weapons near and into the vehicle, striking both agents. Estaca members continued to fire at the vehicle as the agents attempted to escape by driving away. Special Agent Zapata died as a result of the gunshot wounds he suffered during the attack, and Special Agent Avila was seriously injured.
On April 19, 2011, Espinoza was indicted by a federal grand jury in the District of Columbia on multiple counts pertaining to the murder of ICE Special Agent Zapata and the attempted murder of ICE Special Agent Avila and, on Dec. 20, 2011, was extradited from Mexico to the United States. This morning, the defendant entered a guilty plea before Chief Judge Royce C. Lamberth to the murder of Special Agent Zapata, an officer and employee of the United States, and the attempted murder of Special Agent Avila, an officer and employee of the United States.
In addition to the announcing the guilty plea of Espinoza, prosecutors also announced related guilty pleas by three other defendants. Ruben Dario Venegas Rivera, also known as “Catracho,” 25, pleaded guilty on Aug. 1, 2011, to federal charges concerning the murder of Special Agent Zapata and attempted murder of Special Agent Avila. Jose Ismael Nava Villagran, also known as “Cacho,” 30, pleaded guilty on Jan. 4, 2012, also to federal charges concerning the murder and attempted murder of the ICE agents. Francisco Carbajal Flores, also known as “Dalmata,” 38, pleaded guilty on Jan. 10, 2012, to conspiracy to conduct the affairs of an enterprise through a pattern of racketeering activity and to being an accessory after the fact to the murder and attempted murder of the ICE agents.
As part of their guilty pleas, Espinoza, Rivera and Villagran admitted to being members of a Los Zetas hit squad and to participating directly in the Feb. 15, 2011, ambush of the two Special Agents. The fourth defendant, Flores, acknowledged assisting Zetas members after the Feb. 15 attack.
All four defendants face a maximum sentence of life in prison. No sentencing date has been set for the defendants.
“Special Agent Zapata died for his country in a senseless and brutal attack, and Special Agent Avila was grievously wounded in the same ambush by members of Los Zetas Cartel,” said Acting Assistant Attorney General Raman. “Both men are American heroes who dedicated themselves to protecting the United States, only to be attacked by vicious thugs. I hope that today’s announcement of guilty pleas by the Cartel members directly responsible for the attack brings some measure of justice to the victims and their families. A team of dedicated prosecutors and investigators has worked day and night to identify and hold these defendants accountable. Our work is far from over, and we will continue to devote our full resources and work with our law enforcement partners here and abroad to investigate and prosecute those responsible.”
“The deadly ambush of two highly dedicated and courageous American law enforcement officers by the Los Zetas drug cartel demanded an intense, dedicated and forceful response,” said U.S. Attorney Machen. “The message to any criminal who dares to commit an act of violence against a U.S. law enforcement officer serving in a foreign land is unmistakable - if you commit such a heinous crime, we will not forget, we will not falter, and we will not rest until you are brought to justice. Our work in this critical case will continue until all of those who participated in the murder of Special Agent Zapata and attempted murder of Special Agent Avila are held accountable.”
“With the assistance of our law enforcement partners, assailants responsible for murdering Agent Zapata and wounding Agent Avila have been brought to justice,” said FBI Assistant Director Hosko. “While there is nothing we can do to change what happened that fateful day in Mexico, let it be known that an attack against any federal agent serving his or her country is an attack on all federal agents and as such remains a priority for the FBI until those responsible are brought to justice.”
“Today’s announcement is a very important milestone in the effort to see that justice is served in the murder of ICE Special Agent Zapata and the attempted murder of ICE Special Agent Victor Avila,” said ICE Director Morton. “Both men were trying to make the world a safer place, and today’s result is a very welcome step to honor their service and sacrifice.”
This case is being investigated by the FBI, with substantial assistance from ICE, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Customs and Border Protection, the Diplomatic Security Service and the U.S. Marshals Service.
The case is being prosecuted by the Organized Crime and Gang Section and the Narcotic and Dangerous Drug Section of the Justice Department’s Criminal Division and the U.S. Attorney’s Office for the District of Columbia. The Office of International Affairs of the Justice Department’s Criminal Division provided substantial assistance.
13-182The United States Sues Reunion Mortgage and its Owner, President, and Designated Broker under the False Claims ActRead the Press Release
SAN FRANCISCO – The United States filed a civil complaint against Reunion Mortgage and its Owner, President and Designated Broker, David Thayer, under the False Claims Act, 31 U.S.C. §§ 3729-3733, United States Attorney Melinda Haag announced. The complaint seeks treble damages and civil penalties in connection with Reunion Mortgage’s participation in the Federal Housing Administration’s (“FHA”) Direct Endorsement Lender Program.
The complaint alleges that Reunion Mortgage and Thayer approved twelve loans and falsely certified that the loans met the U.S. Housing and Urban Development’s (“HUD”) requirements and were eligible for FHA insurance. The complaint further alleges that Reunion Mortgage and Thayer knew that the company’s underwriters routinely failed to perform basic due diligence, failed to verify information in the loan file that bore directly on the borrower’s ability to make payments on the mortgage, and repeatedly certified mortgage loans that contained serious defects and departures from HUD’s underwriting standards. The twelve loans defaulted and FHA paid more than $1.63 million in insurance claims as a result.
U.S. Attorney Melinda Haag said: “As alleged, Reunion Mortgage and David Thayer turned out bad loans and lied about their compliance with HUD requirements. This Office will continue its work to hold the perpetrators of mortgage fraud accountable.”
Ila C. Deiss is the Assistant U.S. Attorney who is handling the case with the assistance of Financial Fraud Investigator Michael Zehr, Contract Paralegal Sarah Oldridge, and HUD Forensic Auditor Seda Mangassarian. The case is the result of an investigation by HUD’s Office of the Inspector General’s Civil Fraud Division, and is part of HUD's High Default Lender Initiative.
(Reunion Complaint )
Tax Preparer Convicted of Running Tax Fraud SchemeRead the Press Release
PHILADELPHIA - A federal jury, yesterday, returned guilty verdicts against Adekunle Adetayo Adeolu, a/k/a "Archie," 48, of Maryland, in a tax fraud conspiracy that involved phony claims for tax credits. Co-defendant Olugboyega Fisher, a/k/a "Remi Fisher, 47, a Nigerian national, pleaded guilty June 5, 2012. U.S. District Court Judge Mitchell S. Goldberg scheduled a sentencing hearing for September 10, 2013. Fisher will be sentenced on July 10, 2013. Adeolu faces an advisory sentencing guideline range of at least 27 to 33 months in prison; Fisher faces an advisory sentencing range of at least 15 to 21 months. Both defendants may also be ordered to make restitution to the IRS.
Adeolu partly owned, managed, and operated Adeolu & Okojie, Inc., a tax service business located at 124 S. 52nd Street, Philadelphia, Pennsylvania. He employed approximately 14 people, including Fisher who worked as a tax preparer. In addition to the conspiracy count, the defendant was found guilty of two counts of aiding and abetting the preparation of materially false tax returns.
The evidence presented at trial showed that between 2005 and 2008, when a client owed federal taxes, Adeolu and Fisher would sell that person the name and social security number of an individual in order to claim that person as a dependent and/or falsely claiming on their clients’ behalf an earned income tax credit, a child tax credit, and an additional tax credit. The jury also found that Adeolu willfully aided and assisted in the preparation of U.S. Individual Income Tax Returns that were fraudulent in that they represented that the taxpayers were entitled to claim dependents and tax credits that the defendant knew the taxpayers were not entitled to claim.
The case was investigated by the Internal Revenue Service Criminal Investigations and is being prosecuted by Assistant United States Attorney Jose Arteaga.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Summers Co. Pill Dealer Pleads Guilty to Federal Drug ChargesRead the Press Release
BECKLEY, W.Va. – A Summers County pill dealer pleaded guilty today in federal court to drug charges, announced U.S. Attorney Booth Goodwin. Michael Harshaw Jr., 36, of Hinton, Summers County, W.Va., pleaded guilty in federal court in Beckley to distribution of oxycodone. On October 3, 2012, Harshaw sold five oxycodone tablets to an individual cooperating with law enforcement authorities. The pill transaction occurred at Harshaw’s Summers County residence.
Harshaw faces up to 20 years in prison and a $1 million fine when he is sentenced on October 10, 2013 by United States District Judge Irene C. Berger.
The West Virginia State Police Bureau of Criminal Investigations conducted the investigation. Assistant United States Attorney John File is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
St. Francis Man Charged with Aggravated Sexual Abuse of A Child, Aggravated Sexual Contact with A Child, and Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child, Aggravated Sexual Contact with a Child, and Abusive Sexual Contact.
Vernon Blackhorse, age 63, was indicted by a federal grand jury on May 15, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 20, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to life in custody, a $250,000 fine, or both; life of supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation and Blackhorse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
Blackhorse was remanded to the custody of the U.S. Marshal pending trial. A trial date has not been set.
Serial Bank Robber Sentenced to 45 Years in Federal PrisonRead the Press Release
Quentin A. Sherer, 33, a resident of Toledo, Ohio, was sentenced on Tuesday to 45 years in federal prison after having been found guilty by a jury of bank robbery and brandishing a firearm during that bank robbery, announced United States Attorney Barbara L. McQuade. McQuade was joined in the announcement by Robert D. Foley, III, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Sherer and Martin L. Tucker, 33, were found guilty after a week-long trial before the Honorable Judge Robert H. Cleland in U.S. District Court in Detroit in December 2012.
The evidence presented during the trial showed that on July 16, 2009, Sherer and Tucker, armed with semi-automatic pistols, entered the Monroe County Community Credit Union in Temperance, Michigan, and ran to the teller counter. Sherer pointed the gun at one teller and demanded money. Tucker ran to another teller window, pushed a customer out of the way, pointed the gun at the customer and teller and demanded money. Both Sherer and Tucker wore masks and hooded sweatshirts. After taking money, both ran out of the credit union into an awaiting getaway car. A customer at the drive through window followed the getaway car a couple miles away into Toledo, where the robbers abandoned the car in the driveway of a private residence. When officers from the Monroe County Sheriff’s Office responded to that residence, they retrieved several items of clothing that were worn during the robbery along the path where Sherer and Tucker had fled. The FBI Laboratory in Quantico, Virginia conducted a DNA examination of the evidence recovered in and around the getaway car and found matches between the DNA extracted from several pieces of the evidence and Sherer and Tucker’s DNA.
This conviction was Sherer’s third federal conviction for bank robbery and second federal conviction for using a firearm during a crime of violence. Sherer committed this bank robbery less than 8 months after being released from prison for his previous bank robbery convictions.
Sentencing of Tucker is scheduled for August 27, 2013.
“Criminals who use guns to commit violent crimes are not welcome in our community, and we hope that strong sentences like this one will deter these kinds of crimes,” McQuade said.
FBI Special Agent in Charge Foley stated, “"Those who engage in violent crime and other illegal activity pose a serious threat to the safety of citizens. The FBI is committed to stopping these dangerous acts and protecting our communities."
The case was investigated by the Federal Bureau of Investigation and the Monroe County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Patrick Hurford and Frances Carlson.
Sentences for May 22 - 23, 2013Read the Press Release
Moises Robles-Alonso, 28, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on May 23, 2013, for illegal re-entry of a previously deported alien into the United States. Robles-Alonso was arrested in Jackson, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Bertin Cruz-Hernandez, 28, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on May 23, 2013, for illegal re-entry of a previously deported alien into the United States. Cruz-Hernandez was arrested in Cheyenne, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Eloy Garcia-Perez, 28, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on May 23, 2013, for illegal re-entry of a previously deported alien into the United States. Garcia-Perez was arrested in Jackson, Wyoming. He received eight months of imprisonment, to be followed by three years of supervised release, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Ivan Olivas-Ontiveros, 33, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on May 23, 2013, for illegal re-entry of a previously deported alien into the United States. Olivas-Ontiveros was arrested in Rock Springs, Wyoming. He received twelve months of imprisonment, to be followed by three years of supervised release, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This casewas investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Jaime Garcia-Suarez, 37, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on May 23, 2013, for illegal re-entry of a previously deported alien into the United States. Garcia-Suarez was arrested in Laramie, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Leslie Diane Zynda, 39, of Marion, Iowa, was sentenced by Federal District Court Judge Alan B. Johnson on May 22, 2013, for tax evasion. Zynda self-surrendered in Cheyenne, Wyoming. She received 24 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. In addition, Zynda was ordered to pay restitution to the Town of Guernsey in the amount of $276,706.00 and to the Internal Revenue Service in the amount of $75,089.20. This case was investigated by the Internal Revenue Service.
Saratoga Springs Man Charged with Failing to Update Sex Offender Registration InformationRead the Press Release
Albany, New York —United States Attorney Richard S. Hartunian and David McNulty, U.S. Marshal for the Northern District of New York, announce the filing of a criminal Complaint charging EUGENE PERIARD, age 33, of Saratoga Springs, New York, with failing to update his sex offender registration information.1 The Complaint charges that on or about April 30, 2013, PERIARD failed to update his sex offender registration information by advising authorities that he had moved from Elk City, Oklahoma to Saratoga Springs, New York. If found guilty of the charge in the Complaint, the defendant faces a statutory maximum sentence of ten years imprisonment and a maximum fine of $250,000.00.
PERIARD had his initial appearance in Albany on May 23, 2013 before the Honorable Christian F. Hummel, United States Magistrate Judge. PERIARD was detained pending his next court appearance.
This case was investigated by the U.S. Marshals Service and the Saratoga Springs Police Department. This case is being prosecuted by Assistant United States Attorney Rick Belliss.
LOCAL CONTACT: Rick Belliss
Assistant U.S. Attorney
Tel: (518) 431-0247_______________________
1The charge is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Sales Manager of Buy-A-Home Real Estate Brokerage Sentenced in Manhattan Federal Court to 24 Months in Prison for Participating in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ERIN DAVIS, former sales manager for the now defunct Buy-A-Home real estate brokerage business, was sentenced today in Manhattan federal court to 24 months in prison for participating in a multi-million dollar mortgage fraud scheme. DAVIS and Buy-A-Home’s owner, Mitchell Cohen, were indicted in July 2012. DAVIS pled guilty in January 2013 to one count of conspiracy to commit mail, wire and bank fraud, and was sentenced today before U.S. District Judge Denise L. Cote.
Manhattan U.S. Attorney Preet Bharara stated: “At the ground level of the mortgage crisis were people like Erin Davis, a top manager at Buy-A-Home, who orchestrated falsehoods and moved money around to generate millions of dollars of fraudulently obtained mortgages. This Office remains committed to using every legal means available to hold to account those who helped contribute to the home mortgage crisis and to FHA’s dire financial straits.”
According to the Indictment and statements made during court proceedings:
From 2007 through 2010, the U.S. Department of Housing and Urban Development’s Federal Housing Administration (“HUD-FHA”) provided mortgage insurance to borrowers seeking residential mortgages. Unlike conventional loans, FHA-insured loans required little cash investment from borrowers and were more flexible in income and payment ratio requirements. To qualify for FHA mortgage insurance, a potential borrower had to meet HUD requirements regarding his or her creditworthiness and ability to make mortgage payments. No undisclosed payments could be made or promised in connection with a residential mortgage transaction. Additionally, certain private lenders were authorized to make commitments for the provision of FHA mortgage insurance on behalf of HUD. They did so through the execution and ultimate submission to HUD of various mortgage documents, forms, and supporting documentation. Because FHA-backed mortgages were valuable commodities, lenders typically sold them to banks that pooled them and then resold them to institutional investors.
From April 2007 through October 2010, DAVIS was a sales manager for a real estate brokerage business in Queens, New York known, at various times, as Buy-a-Home, LLC and First Home Brokerage, LLC (“Buy-a-Home”). During that time period, DAVIS and Cohen engaged in a widespread conspiracy to defraud HUD into issuing FHA mortgage insurance and to defraud banks into purchasing the FHA-backed mortgages issued to Buy-a-Home’s clients in order to earn substantial profits. DAVIS, Cohen and others at Buy-a-Home recruited unsophisticated buyers of modest means and induced them into purchasing the same homes at inflated prices. To insure that the deals for these properties would go through, DAVIS, Cohen and others schemed to make the Buy-a-Home clients – who did not and could not qualify to receive FHA mortgage insurance – seem more creditworthy.
In furtherance of this scheme, DAVIS directed Buy-a-Home employees to pay off borrowers’ debts, often with cash funneled through bank accounts of borrowers’ relatives, in order to make the borrowers appear more creditworthy and to make it seem that their debts had been paid by an appropriate source; directed Buy-a-Home employees to provide cash to borrowers so that they could obtain certified checks falsely showing that they had sufficient funds to close; prepared false gift affidavits to make it seem that the borrowers’ debts had lawfully been paid off, or that the borrowers’ funds for closing had been appropriately provided by relatives, when in fact they had unlawfully paid off the debts themselves or through Buy-a-Home; and advised borrowers to make other false statements on loan applications submitted to HUD. In so doing, DAVIS concealed the borrowers’ true financial condition from HUD and the banks that subsequently bought the FHA-backed mortgages, all in an effort to insure that they and Buy-a-Home could profit from the deals.
Through this scheme, DAVIS, Cohen and others defrauded HUD into issuing, and banks into purchasing, over $7.5 million dollars in fraudulent loans. Furthermore, because the FHA insurance was based on false statements made to HUD, and the borrowers could not really afford their mortgages, many of the homes went into foreclosure proceedings, forcing HUD to pay out over $1.5 million in insurance payments.
In addition to the prison term, Judge Cote sentenced DAVIS, 44, of Yonkers, New York, to three years of supervised release. DAVIS was also ordered to forfeit $2,416,597, and to pay $117,992.19 in restitution to HUD-FHA. She will surrender on July 5, 2013, at 2 p.m.
On April 26, 2013, Judge Cote sentenced DAVIS’s co-defendant, Mitchell Cohen, to 70 months in prison. Cohen was also ordered to forfeit $7,515,966, and to pay $1,574,259.43 in restitution to HUD-FHA. He will surrender on June 28, 2013, at 2:00 p.m. COHEN also settled a related civil case. The civil judgment against Cohen consists of $2.2 million in damages and $500,000 in penalties, and is the fifth and final settlement in the civil action. In four prior settlements entered in 2011 and 2012, the Government recovered $1.55 million in damages and penalties from the lender and the appraisers. The lender, the lender’s principals and key employees, and the appraisers all agreed to be barred from all HUD programs either permanently or for a term of up to 10 years.
Mr. Bharara praised HUD-OIG and FHFA-OIG for their outstanding work in the investigation.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established 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 nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
This matter is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Janis Echenberg and Nicole Friedlander are in charge of the case.
Rosebud Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Dwight Black Spotted Horse, age 28, was indicted by a federal grand jury on May 15, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 20, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to 10 years’ in custody, a $250,000 fine, or both; life of supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation and Black Spotted Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshal Service. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
Black Spotted Horse was remanded to the custody of the U.S. Marshal pending trial. A trial date has not been set.
Rochester Man Charged with Attempted Online Enticement of A Minor, Attempted Production of Child Pornography, and Transportation of Child PornographyRead the Press Release
Defendant Alleged to Have Communicated Online with an Undercover Investigator Posing as a
Twelve Year Old Girl in Order to Send Her Images of Child Pornography and to Arrange a
Meeting in a Syracuse Hotel Where Sexual Acts Would be FilmedAlbany, New York —United States Attorney Richard S. Hartunian and Joseph D’Amico, Superintendent of New York State Police, announce the filing of a three-count criminal Complaint charging JASON FRANK, age 27, of Rochester, New York, with the attempted online enticement of a minor, the attempted production of child pornography, and the transportation of child pornography. 1 According to the Complaint, between about February 2013 and April 2013, FRANK engaged in online chats with an undercover New York State Police investigator posing as a twelve year old girl. FRANK’s online chats urged the twelve year old girl to meet him for an encounter in which FRANK would perform oral sex on the girl and then have sexual intercourse with the girl. On or about April 9, 2013, FRANK attempted to produce images of child pornography when he showed up at a Syracuse hotel in possession of a digital camera, expecting to meet the twelve year old girl for purposes of a sexual encounter that would be filmed. Finally, between about February 2013 and April 2013 FRANK transported files of child pornography to the undercover investigator by sending the undercover investigator multiple still image files of child pornography via the Internet.
If found guilty of attempted online enticement of a minor, the defendant faces a statutory minium of at least ten years imprisonment and up to a maximum sentence of life imprisonment, and a maximum fine of $250,000.00. If found guilty of attempted production of child pornography, the defendant faces a statutory minium of at least fifteen years imprisonment and up to a maximum sentence of thirty years imprisonment, and a maximum fine of $250,000.00. If found guilty of transporting child pornography, the defendant faces a statutory minimum of at least five years imprisonment and up to a maximum sentence of twenty years imprisonment, and a maximum fine of $250,000.00.
FRANK had his initial appearance in Albany on May 23, 2013 before the Honorable Christian F. Hummel, United States Magistrate Judge. FRANK was detained pending his next court apperance.
This case was investigated by the New York State Police .This case is being prosecuted by Assistant United States Attorney Rick Belliss.
LOCAL CONTACT: Rick Belliss
Assistant U.S. Attorney
Tel: (518) 431-0247_____________________________
1The charges are merely accusations and the defendant is presumed innocent until and unless proven guilty.
Recidivist Sentenced to 188 Months for Bank RobberyRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today ERNEST RICHARD MICHAELSON, 58, of Bridgeport, Connecticut, was sentenced by United States District Judge Terrence W. Boyle to 188 months imprisonment for Bank Robbery, in violation of Title 18, United States Code, Section 2113(a), three years of supervised release, restitution of $6530.00 and a $100 special assessment.
On February 5, 2013 MICHAELSON pled guilty to robbing Capital Bank in Fayetteville, North Carolina on April 20, 2012. MICHAELSON handed a teller a note that read, “I want 550 million dollars now thank you.” MICHAELSON then told the teller, “I have a gun in my back pocket. I ain’t scared to die.” The teller did not see a gun but complied and handed MICHAELSON $6,530 who stuffed it in his shirt and fled the bank.
At the time of the April, 2012, offense, MICHAELSON had absconded parole in Bridgeport, Connecticut following his three prior 2000 Connecticut convictions for bank robbery.
Investigation of this case was conducted by the Federal Bureau of Investigation and the Fayetteville Police Department. Assistant United States Attorney Thomas B. Murphy prosecuted the case.
President of San Francisco Based DAJA International Pleads Guilty to Making False Statements in A Loan ApplicationRead the Press Release
SAN FRANCISCO - Jacqueline Besser pleaded guilty, yesterday, to making false statements in a loan application, United States Attorney Melinda Haag announced.
In pleading guilty, Besser admitted that in October 2010, as the president of DAJA International, LLC (“DAJA”), she applied to Community Bank of the Bay (“CBB”) for a loan and a line of credit for DAJA. Besser was to be the guarantor of that loan and line of credit.
According to her plea agreement, Besser admitted that as part of the application process, she submitted various documents to CBB between approximately June 20, 2010, and approximately September 30, 2010 that included false statements. The documents included personal financial statements, a Small Business Administration application, a business debt schedule, and corporate financial statements. These documents required Besser to list, among other things, all of the outstanding loans, liens, and any other money owed by her, and all of the outstanding loans, liens, and any other money owed by DAJA. When she submitted these documents, however, Besser intentionally failed to report approximately $500,000 in outstanding loans to her company, DAJA, and to her, either individually or jointly with her husband.
Based on the documentation Besser provided, CBB approved the loan and extended a $1.75 million term loan and a $100,000 line of credit to DAJA.
In November 2011, DAJA filed for bankruptcy, and in December 2011, Besser filed for bankruptcy. At the time of these bankruptcy filings, DAJA owed approximately $1.7 million in principal, interest, and late charges on the CBB note, and approximately $114,109 in principal, interest, and late charges on the CBB line of credit.
Besser, 60, of San Francisco, pleaded guilty to one count of making a false statement to a bank in violation of Title 18 United States Code, Section 1014.
The sentencing of Besser is scheduled for September 3, 2013, before The Honorable William Alsup U.S. District Court Judge. The maximum statutory penalty for a violation of Title 18 United States Code, Section 1014, is 30 years in prison and a fine of $1 million or twice the gross gain or loss, whichever is greater, plus restitution. However, any sentence would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Jonathan Schmidt and Benjamin Kingsley are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Marina Ponomarchuk, Rayneisha Booth, and Colleen Cushnie. The prosecution is the result of a one-year investigation by the Small Business Administration, Office of Inspector General.
President of Investment Fund Sentenced in Manhattan Federal Court to 30 Months in Prison for $2 Million Ponzi SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that ANAND SEKARAN, the President and Director of Wasson Capital Ltd. (“Wasson”), an investment fund, was sentenced today in Manhattan federal court to 30 months for engaging in a $2.3 million scheme to defraud Wasson’s investors. SEKARAN misled Wasson investors concerning the fund’s value, distributed funds to investors that were contributed from other investors, and issued fraudulent account and fund performance statements. He pled guilty in November 2012, and was sentenced today by U.S. District Judge Robert P. Patterson.
Manhattan U.S. Attorney Preet Bharara said: “Anand Sekaran spun a web of lies and engineered a Peter-to-pay-Paul scheme all designed to deceive existing investors, lure new investors and cover-up his market losses while he benefited financially. Sekaran left many of his investors to suffer dire financial consequences, and now it is Sekaran who will suffer the consequences of his actions.”
According to the Information and statements made during the guilty plea and other court proceedings:
In 1997, SEKARAN formed Wasson as an asset management firm in New York, New York, that would invest client money primarily in the U.S. options market, and he solicited investors from 1999 through 2010. As a result of both the substantial losses Wasson incurred and several redemption requests, SEKARAN defrauded investors, by diverting their funds, and perpetrating a “Ponzi” scheme using two different methods, from 2009 through June 2011.
First, SEKARAN misrepresented Wasson’s investment value and past performance, the ways investor funds were being used to existing and potential investors, and the source of funds distributed to investors who had requested redemptions. Specifically, he misrepresented that Wasson was stable and doing well so that he could secure additional contributions. Further, in response to certain investor redemption requests, SEKARAN used money from other investors to pay off the redeeming investors.
Second, SEKARAN distributed fraudulent statements to investors in order to forestall redemption requests, induce new investors to contribute to Wasson, and induce existing investors to provide additional contributions. For example, he caused misleading and fabricated account statements to be sent to several Wasson investors that falsely inflated the value of their investments. SEKARAN also created and distributed fraudulent performance statements purporting to show that the Wasson fund was performing well, when in fact, it was suffering losses.
In the course of his scheme, SEKARAN misappropriated approximately $500,000 of investor funds. Further, more than 10 investors lost a total of approximately $2 million.
In addition to the prison term, Judge Patterson sentenced SEKARAN, 44, of Miami, Florida, to three years of supervised release. SEKARAN was also ordered to pay $2.3 million in forfeiture, to make restitution in the amount of $2,264,998.12, and to pay a $200 special assessment fee.
Mr. Bharara praised the investigative work of the Criminal Investigators of the United States Attorney’s Office and the U.S. Postal Inspection Service, which jointly investigated this case. He also thanked the Securities and Exchange Commission for its assistance.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established 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 nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney David I. Miller is in charge of the prosecution.
Philadelphia Man Pleads Guilty to Tax Fraud SchemeRead the Press Release
Colin Williams, 32, of Philadelphia, pleaded guilty today to his role in a tax fraud scheme that fraudulently sought refunds in the amount of approximately $868,907. Williams was charged with conspiracy and fraud in connection with the same tax refund scheme that is alleged in an indictment against Benjamin Johnson, 48, of Philadelphia. Williams and Johnson operated Marshall Street Financial Services (“MSFS”), a tax preparation services business located at 974 N. Marshall Street in Philadelphia. Johnson will be arraigned Friday.
The Indictment alleges that between December 2008 and April 2009, Johnson and Williams conspired to obtain identification and dependent information to MSFS customers which would enable the customers to obtain what was said to be government refunds or “stimulus payments.” Along with Williams, Johnson allegedly solicited customers who were typically unemployed or low-income earners, sometimes supported primarily by public assistance, to provide their personal identification information, including their dates of birth, Social Security number information, and such information belonging to the customers’ dependents. After obtaining the customer’s personal identification and income information, Williams allegedly sought tax refunds by preparing false federal income tax returns and schedules which contained inflated and false income and Earned Income Tax Credit information.
After early February 2009, Johnson allegedly arranged for the IRS tax refunds to be electronically transferred into his and Williams’ own bank accounts instead of the accounts of MSFS customer/taxpayers, thereby enabling Johnson and Williams to receive the customers’ refunds themselves. The defendants allegedly distributed only a portion of the remittance to the customer. It is further alleged that Johnson caused the filing of tax returns for himself and in the name of an individual, known to the grand jury, unlawfully identifying children who were the dependents of another MSFS employee and of MSFS customers. Between January 2009 and April 2009, Johnson and Williams allegedly sought refunds, by falsifying returns, in the amount of approximately $868,907.
At sentencing on September 11, 2013, Williams faces a maximum possible sentence of 15 years in prison, three years of supervised release, a fine of up to $500,000, and a $200 special assessment. If convicted of all charges, Johnson faces a maximum possible sentence of 50 years in prison, three years of supervised release, a fine of up to $2.25 million, and a $900 special assessment. Upon conviction, both defendants may be ordered to pay restitution to the IRS.The case was investigated by the Internal Revenue Service Criminal Investigations and is being prosecuted by Assistant United States Attorney James R. Pavlock.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Owner of Investment Company Pleads Guilty to Engaging in a Fradulent Investment SchemeRead the Press Release
The owner of an investment company pleaded guilty today for his role in an investment scheme involving false promises, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Virginia Neil H. MacBride, and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office.
David Eugene Howard II, 34, of Queens Village, N.Y., pleaded guilty before U.S. District Judge T. S. Ellis III in the Eastern District of Virginia to one count of mail fraud.
According to the plea documents, from in or about March 2008 through in or about April 2009, Howard falsely represented to investors that his company, Flatiron Systems LLC, traded pooled equity accounts using a proprietary trading system called “Pathfinder.” Through distributing false and misleading letters, operating agreements, account statements and other materials, he caused investors to send investments of at least $5,000, which were deposited into an account that he exclusively controlled and which he later misappropriated for his own benefit and the benefit of others.
Over the course of his scheme, Howard directly misappropriated approximately $373,000 of $1.8 million in investor funds. Howard’s misappropriation included approximately $86,000 in transfers to his personal bank account, cash withdrawals and personal expenditures made with his company debit card, to include approximately $34,500 in charges at a night club and approximately $3,600 in charges towards the purchase of a Tiffany necklace for Howard’s girlfriend at the time.
According to court documents, in December 2008, Howard falsely informed investors that trading had been voluntarily halted so that an independent audit could be performed. Nonetheless, Howard continued to transfer approximately $26,500 in investor funds to his personal bank account, along with additional cash withdrawals and personal expenditures over the course of the following four months. Howard followed up with another letter which falsely advised investors of prolonged audit and tax procedures, which his nonexistent attorneys and accountants were purportedly diligently working on.
At sentencing, Howard faces a maximum penalty of 20 years in prison, a fine of $250,000 or twice the gross gain or loss, and full restitution. Sentencing is scheduled for Sept. 20, 2013.
In a related action, the U.S. Securities and Exchange Commission (SEC) filed a civil enforcement action against Howard on March 21, 2011.
This prosecution is the result of an investigation by the FBI’s Washington Field Office, along with a parallel investigation by the SEC. The case is being prosecuted by Trial Attorneys Mark Grider, N. Nathan Dimock, and Luke B. Marsh of the Justice Department Criminal Division’s Fraud Section, and by Assistant U.S. Attorney Kosta S. Stojilkovic of the Eastern District of Virginia.
Owner of Investment Company Pleads Guilty to Engaging in A Fradulent Investment SchemeRead the Press Release
ALEXANDRIA, Va. – The owner of an investment company pleaded guilty today for his role in an investment scheme involving false promises, announced U.S. Attorney for the Eastern District of Virginia Neil H. MacBride and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
David Eugene Howard II, 33, of Queens Village, N.Y., pleaded guilty before U.S. District Judge T. S. Ellis III in the Eastern District of Virginia to one count of mail fraud.
According to the plea documents, from in or about March 2008 through in or about April 2009, Howard falsely represented to investors that his company, Flatiron Systems, LLC, traded pooled equity accounts using a proprietary trading system called “Pathfinder.” Through distributing false and misleading letters, operating agreements, account statements, and other materials, he caused investors to send investments of at least $5,000, which were deposited into an account that he exclusively controlled and which he later misappropriated for his own benefit and the benefit of others.
Over the course of his scheme, Howard directly misappropriated approximately $373,000 of $1.8 million in investor funds. Howard’s misappropriation included approximately $86,000 in transfers to his personal bank account, cash withdrawals, and personal expenditures made with his company debit card, to include approximately $34,500 in charges at a night club and approximately $3,600 in charges towards the purchase of a Tiffany necklace for Howard’s girlfriend at the time.
According to court documents, in December 2008, Howard falsely informed investors that trading had been voluntarily halted so that an independent audit could be performed. Nonetheless, Howard continued to transfer approximately $26,500 in investor funds to his personal bank account, along with additional cash withdrawals and personal expenditures over the course of the following four months. Howard followed up with another letter which falsely advised investors of prolonged audit and tax procedures, which his nonexistent attorneys and accountants were purportedly diligently working on.
At sentencing, Howard faces a maximum penalty of 20 years in prison, a fine of $250,000 or twice the gross gain or loss, and full restitution. Sentencing is scheduled for Sept. 20, 2013.
In a related action, the U.S. Securities and Exchange Commission (SEC) filed a civil enforcement action against Howard on March 21, 2011.
This prosecution is the result of an investigation by the FBI’s Washington Field Office, along with a parallel investigation by the SEC. The case is being prosecuted by Trial Attorneys Mark Grider, N. Nathan Dimock, and Luke B. Marsh of the Justice Department Criminal Division’s Fraud Section, and by Assistant U.S. Attorney Kosta S. Stojilkovic of the Eastern District of Virginia.Operators of Foreclosure Rescue Scam SentencedRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Adam P. Moellers, 35, of Mason, Ohio was sentenced to 36 months in prison and Gary P. Dailey, aka Gary Klump, 33, of Covington, Kentucky was sentenced to 21 months in prison in U.S. District Court today for engaging in a foreclosure rescue scheme through a company called American Equity Group (AEG). A third defendant, Perry Bensick, 37, of Monroe, Ohio was sentenced on May 21 for his role in the scheme to a year and a day in prison. Each will be placed under court supervision for three years after their prison terms end.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Division (FBI) announced the sentences imposed by U.S. District Judge Michael Barrett.
AEG approached homeowners in financial distress with promises to find a buyer for their property who would let them stay there as renters until they were ready to buy it back. AEG convinced individuals to become investors by promising them they could buy a property with no money down, collect rent for a year or two then sell it back to the renter for a profit. AEG inflated the sale price, put together fraudulent loan applications, and took out extra cash at closing. The renters never purchased the properties back and the investors couldn’t afford to keep them.
“As a result, the properties went into foreclosure with even larger loan balances and with investors/borrowers who did not appreciate the risk that they had undertaken,” Assistant U.S. Attorney Timothy Mangan wrote in a court filing before Dailey’s sentencing.
The FBI calculated that in 2006 and 2007, the scheme caused losses of $6,849,460 to lenders. The defendants will be ordered to pay restitution in an amount to be determined by the court.
“The lenders were not the only victims,” Assistant U.S. Attorney Mangan told the court. “For the investors, they typically ended in bankruptcy or with ruined credit in exchange for a rescue plan by AEG that was doomed to fail.”
Moellers pleaded guilty on August 9, 2012 to one count of conspiracy. Dailey pleaded guilty on June 4, 2012 to one count of wire fraud. Besnick pleaded guilty on August 6, 2012 to one count of conspiracy.
U.S. Attorney Stewart commended the investigation by the FBI and Assistant U.S. Attorney Mangan, who represented the United States in the case.Norwalk Man Sentenced to 57 Months in Federal Prison for Illegal Gun PossessionRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that LEROY PRESSLEY, 25, of Norwalk, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 57 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on August 18, 2010, PRESSLEY was arrested by the Norwalk Police Department in the Roodner Court housing complex after he was found in possession of a loaded .38 caliber revolver, approximately 28 grams of crack cocaine and a quantity of heroin.
PRESSLEY was previously convicted of second degree assault in 2004 and sale of narcotics in 2005. The assault stemmed from an incident in which PRESSLEY shot another individual in the leg.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
PRESSLEY, who was on state probation at the time of this offense, has been detained in federal custody since September 9, 2010. On September 25, 2012, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.
While incarcerated in state and federal custody, PRESSLEY has received numerous disciplinary tickets for fighting and committing assaults. In October 2011, PRESSLEY and another individual violently assaulted another inmate at the Donald W. Wyatt Detention Facility by repeatedly punching and kicking him in the face and the head. Judge Burns referred to these incidents as aggravating factors when she refused PRESSLEY’s request for a sentence of time served and imposed a term of incarceration at the top of the federal sentencing guidelines range.
This matter was investigated by the Norwalk Police Department and the Drug Enforcement Administration, pursuant to the Project Safe Neighborhoods initiative in Norwalk. The case was prosecuted by Assistant United States Attorneys Robert Spector and Marc Silverman.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Norwalk Felon Caught with Gun Sentenced to 57 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ANTOINE LAWS, 27, of Norwalk, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 57 months of imprisonment, followed by three years of supervised release, for possession of a firearm by a previously convicted felon.
According to court documents and statements made in court, on June 6, 2012, LAWS was arrested by the Norwalk Police Department in the Roodner Court housing complex after he was found in possession of a .25 Caliber ACP semi-automatic handgun, which was loaded with hollow-point ammunition, and a quantity of crack cocaine.
LAWS was previously convicted of burglary, narcotics and firearms offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
LAWS has been detained since his arrest. On January 29, 2013, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.
This matter was investigated by the Norwalk Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, pursuant to the Project Safe Neighborhoods initiative in Norwalk. The case was prosecuted by Assistant United States Attorney Sarah P. Karwan.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Northern Arapaho Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Christopher A. Crofts announced today that on May 22, 2013, Starr Dana Miller, a 20-year-old enrolled Northern Arapaho man from Arapahoe, Wyoming, appeared in Federal District Court for sentencing before United States District Judge Alan B. Johnson on a single count of abusive sexual assault in violation of 18 U.S.C. §§ 2244(a)(2) and 1153. Miller was sentenced to time served, seven months of home confinement, five years of supervised release and was ordered to pay a $100.00 special assessment and restitution in the amount of $2,467.00. The charge stemmed from an event which occurred on October 13, 2012, on the Wind River Indian Reservation. The case was investigated by the Federal Bureau of Investigation with substantial assistance of the Bureau of Indian Affairs.
North Dakota Man Charged with Distribution of A Controlled Substance, Firearm Offense and Asset ForfeitureRead the Press Release
United States Attorney Brendan V. Johnson announced that a North Dakota man has been indicted by a federal grand jury.
Ricardo Avila, age 53, was indicted by a federal grand jury on November 19, 2012 for Distribution of a Controlled Substance, Firearm Offense and Asset Forfeiture. Avila appeared before U.S. Magistrate Judge Mark A. Moreno on May 20, 2013 and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years of imprisonment, a $1,000,000 fine, or both; at least 3 years of supervised release, an additional 3 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusations, and Avila is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Avila was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
North County Mexican Mafia Member Pleads Guilty to ConspiracyRead the Press Release
United States Attorney Laura E. Duffy announced that Rudy Espudo pled guilty today before United States District Judge Irma E. Gonzalez to three counts of a superseding indictment including: conspiracy to conduct enterprise affairs through a pattern of racketeering activity (commonly known as RICO conspiracy); conspiracy to distribute methamphetamine; and
knowingly and intentionally brandishing a firearm during and in relation to a crime of violence and a drug-trafficking crime.According to the superseding indictment handed up on August 2, 2012, Espudo is a validated member of the Mexican Mafia who oversaw their activities throughout much of northern San Diego County.
In his guilty plea, Espudo admitted to engaging in drug trafficking and extortion, as well as profiting from the criminal activity of those gang members who worked under his so-called protection. Espudo pledged to “protect” these criminals as long as they paid their “taxes” to the Mexican Mafia. Such taxes are essentially extortion payments made by gang members and drug dealers to a Mexican Mafia member for the right to conduct their illegal activity free from interference from the Mexican Mafia. In one example of a drug dealer who refused to make tax payments, Espudo admitted that he ordered the robbery of that person, which was committed with the use of a shotgun. Espudo also admitted that he had authority over several Mexican Mafia associates who assisted by collecting taxes on his behalf. Drug dealers who paid him taxes in this manner were responsible for distributing methamphetamine, cocaine, heroin and other drugs on the streets of San Diego County.
This case is part of "Operation Notorious County," an investigation led by the North County Regional Gang Task Force, a group of federal, state, and local law enforcement agents led by the San Diego County Sheriff’s Department and the Federal Bureau of Investigation. Operation Notorious County resulted in eight indictments in January 2012, charging fifty-one individuals with participating in a federal racketeering influenced and corrupt organization (RICO) conspiracy. United States Attorney Duffy praised the North County Regional Gang Task Force for the coordinated team effort in this investigation.
Espudo has been in custody since his arrest in January 2012. Judge Gonzalez set a sentencing hearing for Espudo for October 7, 2013.
DEFENDANT Case Number: 12CR0236IEG Rudy Espudo, aka Crazy SUMMARY OF CHARGESTitle 18, United States Code, Section 1962(d) – Conspiracy to conduct enterprise affairs through a pattern of racketeering activity; Title 21, United States Code, Section 841 -Conspiracy to distribute methamphetamine; and Title 18, United States Code, Section 924(c) -Brandishing of a firearm in the commission of a crime of violence and a drug trafficking offense. Maximum penalties: Life in prison
INVESTIGATING AGENCIESSan Diego County Sheriff's Department
Federal Bureau of Investigation
Chula Vista Police Department
National City Police Department
San Diego Police Department
San Diego County District Attorney's Office
U.S. Bureau of Prisons
California Department of Corrections and Rehabilitation
San Diego County Probation
Department, Immigration and Customs Enforcement's Homeland Security Investigations Internal Revenue Service-Criminal InvestigationsMorris County, N.J., Man Sentenced to Lengthy Prison Term for Distributing Videos of Child Sexual Abuse over the InternetRead the Press Release
CAMDEN, N.J. – A Morris County, N.J., man was sentenced today in Camden federal court to 210 months in prison for distributing images and videos of child sexual abuse over the Internet, U.S. Attorney Paul J. Fishman announced.
William Rensing, 46, of Lincoln Park, N.J., previously pleaded guilty to one count of an indictment charging him with distribution of child pornography. Rensing entered his guilty plea before U.S. District Judge Jerome B. Simandle, who also imposed the sentence today. Rensing has been in federal custody since his arrest.
According to documents filed in the case and statements made in court:
Law enforcement executed a search warrant at Rensing’s home on July 27, 2011, and seized a notebook computer that contained images and videos of child sexual abuse, including depictions of children as young as 6 years old. Rensing was arrested the same day. He later admitted in court that on March 25, 2011, he used peer-to-peer file-sharing software to share images and videos of child sexual abuse through the Internet.
The length of Rensing’s sentence is due in part to his prior conviction for sexual assault of a minor. In addition to the prison term, Judge Simandle sentenced Rensing to serve 10 years of supervised release.U.S. Attorney Fishman praised special agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees in Newark, for the investigation, as well as detectives of the Morris County Prosecutor’s Office.
The government is represented by Assistant U.S. Attorney Daniel V. Shapiro of the U.S. Attorney’s Office General Crimes Unit in Newark.
13-212Defense counsel: Sean McGovern Esq., Newark
Missouri Woman Indicted for Violating Civil Rights of Family by Setting Fire to Their HomeRead the Press Release
An Independence, Mo., woman was indicted by a federal grand jury today for violating the civil rights of an African-American family by setting fire to their residence, announced Roy L. Austin Jr., Deputy Assistant Attorney General for the Civil Rights Division of the Department of Justice, and Tammy Dickinson, U.S. Attorney for the Western District of Missouri.
Victoria A. Cheek-Herrera, 33, of Independence, was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment charges Cheek-Herrera with participating in a conspiracy to threaten and intimidate an Independence family from exercising their constitutional right to reside in their home because of their race or color. It also charges Cheek-Herrera with committing a racially-motivated arson and with using fire during the commission of a felony.
According to the indictment, Cheek-Herrera conspired with others on June 26, 2008, to injure, oppress, threaten and intimidate Larry Davis, Stacey Little and the couple’s minor children in the free exercise of their constitutional right to occupy and rent their home in Independence, because of their race and color. Davis, Little and their children are all African American.
The indictment alleges that Cheek-Herrera discussed with others her desire to set fire to the home of Davis and Little, and that Cheek-Herrera and a co-conspirator drew a swastika and wrote the words “White Power” on the driveway to Davis and Little’s residence. Cheek-Herrera allegedly asked a juvenile acquaintance for gasoline then helped create a Molotov cocktail by filling a glass bottle with gasoline and inserting a rag into the bottle to serve as a wick. Cheek-Herrera and a co-conspirator then allegedly lit the wick and threw the gasoline-filled bottle into the side of the house that Davis and Little were renting, which set the residence on fire.
If convicted, Cheek-Herrera faces a statutory maximum penalty of 10 years in prison and a fine of $250,000 for one charged count of conspiracy against rights, a statutory maximum penalty of 10 years in prison and a fine of $250,000 for one charged count of interference with housing rights, and a penalty of 10 years imprisonment consecutive to any other sentence and a fine of $250,000 for one charged count of using fire during the commission of a felony.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney David M. Ketchmark and Trial Attorney Shan Patel of the Civil Rights Division of the U.S. Department of Justice. It was investigated by the FBI.
Mississippi Laboratory Operator Found Guilty of Falsifying Records on Industrial WastewaterRead the Press Release
The owner and sole operator of an environmental laboratory was found guilty yesterday in U.S. District Court for the Southern District of Mississippi of all counts of a federal indictment charging falsification of records and obstructing a federal criminal investigation, announced Assistant Attorney General Ignacia S. Moreno of the Justice Department’s Environment and Natural Resources Division and the U.S. Attorney for the Southern District of Mississippi Gregory K. Davis.
Tennie White, owner, operator and manager of Mississippi Environmental Analytical Laboratories Inc., was charged in a three-count felony indictment with two false statements counts and one count of obstructing proceedings. The jury found the White guilty of all counts after an eight day trial before U.S. District Judge Henry T. Wingate at the federal courthouse in Jackson, Miss.
“Our environmental regulatory system depends on the self-reporting of accurate information, including what is being released into the environment. When laboratories who are paid to test and report samples of what is being discharged into our nation’s waters fabricate results and lie to investigators, they will be prosecuted,” said U.S. Attorney Davis.
“Americans expect their public water supply to be clean and safe to use,” said Maureen O’Mara, Special Agent in Charge of EPA’s criminal enforcement program in Mississippi. “In order to safeguard public health it is absolutely essential that governments receive accurate test results and measurements. Violators who submit false reports undermine our efforts to protect the public and the environment. Today’s guilty verdict by a jury demonstrates that the American people will not tolerate laboratories and their managers who place the public at risk by knowingly falsifying test results.”
As describe in the indictment, White was hired to perform laboratory testing of a manufacturer’s industrial process waste water samples and then to use those results to complete monthly discharge monitoring reports for submission to the Mississippi Department of Environmental Quality. The indictment alleged that from October to December 2008 White created three discharge monitoring reports (DMRs) that falsely represented that laboratory testing had been performed on samples when, in fact, such testing had not been done. The indictment further alleged that White created a fictitious laboratory report and presented it to her client for use in preparing another DMR for January 2009. The indictment also alleged that White made false statements to a federal agent during a subsequent criminal investigation.
Sentencing has been scheduled for Aug. 8, 2013 in federal court in Jackson. For the false statements charges, the defendant is facing a maximum sentence of five years in prison and a $250,000 fine per count. The obstructing proceedings charge carries a maximum sentence of 20 years in prison and a $250,000 fine.
The case was prosecuted by Trial Attorney Richard J. Powers of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division, and Assistant U.S. Attorney Gaines Cleveland of the U.S. Attorney’s Office for the Southern District of Mississippi.Mill Creek Man Sentenced to 22 Years in Prison for Production of Child PornographyRead the Press Release
A 58-year-old Mill Creek, Washington man was sentenced today in U.S. District Court in Seattle to 22 years in prison and lifetime supervised release for production of child pornography, announced U.S. Attorney Jenny A. Durkan. PHILLIP STEVEN ALLEN pleaded guilty December 21, 2012. At sentencing U.S. District Judge Richard A. Jones told him, “You grossly violated the trust” of these young victims. Judge Jones noted that ALLEN “permanently placed in the stream of commerce the images of these young children.”
“This defendant molested young relatives, and then victimized them again by distributing sexually explicit images of them to others via the internet,” said U.S. Attorney Jenny A. Durkan. “It is hard to imagine more depraved conduct, which will haunt these young children for years to come. This defendant has fully earned this 22 year prison term.”
According to records filed in the case, ALLEN came to the attention of law enforcement in 2010, when they served a search warrant on a residence in Bloomington, Indiana. The occupant of the home was being investigated for distribution of child pornography. Investigators determined that the Indiana resident had sent child pornography to an email address in Mill Creek. Further investigation linked the address to ALLEN. In July 2011 agents served a search warrant at ALLEN’s address. A computer and two external hard drives were analyzed. Law enforcement found pornographic pictures on the devices of young children who are related to ALLEN. The images have been found in three separate investigations of possession of child pornography across the country.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the FBI. The case was prosecuted by Assistant United States Attorney Jerrod C. Patterson. Mr. Patterson is the Project Safe Childhood coordinator for the U.S. Attorney’s Office.
Michael Andrew Kannegiesser Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on May 23, 2013, before U.S. District Judge Donald W. Molloy, MICHAEL ANDREW KANNEGIESSER, a 22-year-old resident of Billings, appeared for sentencing. KANNEGIESSER was sentenced to a term of:
Prison: 15 months
Special Assessment: $100
Community Service: 150 hours
Supervised Release: 3 years
KANNEGIESSER was sentenced in connection with his guilty plea to possession of a stolen firearm.
In an Offer of Proof filed by Assistant U.S. Attorney Marcia K. Hurd, the government stated it would have proved at trial the following:
On July 8, 2012, KANNEGIESSER was stopped for speeding by law enforcement in Red Lodge. The deputy conducting the stop could smell the odor of an alcoholic beverage and marijuana coming from inside KANNEGIESSER's vehicle, and found an open can of beer in the cup-holder. KANNEGIESSER had a suspended driver's license and his passenger had two warrants. Both were taken into custody. Marijuana and other items of drug paraphernalia were located in the vehicle. While in the vehicle, KANNEGIESSER told the officer that he had a gun right next to him, and the officer found a Springfield, model XDM, 9 mm, semi-automatic pistol right next to where KANNEGIESSER had been sitting, covered by a sleeping bag. KANNEGIESSER gave several conflicting stories about whether the gun was his and then where he had obtained the gun. He also reported that he had a Ruger 10-22 and a Marlin .22 at home. When the deputy checked the gun's serial number, he found that it had been stolen from a person in Billings in May, along with a Ruger 10-22 and a Marlin .22. Both KANNEGIESSER and his passenger were taken into custody; Kannegieser reported that he was on probation and could not be in possession of a firearm.
An ATF Task Force Officer contacted KANNEGIESSER several days later and received additional conflicting stories about his acquisition of the gun, and where the others he had reported he owned were. The officer was unable to retrieve the other stolen guns.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that KANNEGIESSER will likely serve all of the time imposed by the court. In the federal system, KANNEGIESSER does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Red Lodge Police Department.
Manchester Attorney Sentenced to 40 Years on Federal Child Exploitation ChargesRead the Press Release
CONCORD, N.H. – Lisa Biron, 43, of Manchester, was sentenced today in United States District Court for the District of New Hampshire to 40 years in federal prison on child exploitation charges, announced United States Attorney John P. Kacavas.
Following a three-day jury trial in January, Biron was convicted of transportation of a child for illegal sexual conduct, sexual exploitation of a child, and possession of child pornography
The investigation began in September 2012, when an 18-year-old male reported to the Manchester Police Department that he met Biron via a Craigslist personal ad that she had placed. The young male reported that he smoked marijuana and had sex with Biron, following which she introduced him to a young female as her “18-year-old roommate,” who in fact was barely 14-years old. Biron subsequently encouraged the young male to engage in sexual activity with the minor female while Biron video recorded them.
The male also reported that Biron showed him videos of the minor female engaged in sexual activity with another young man. Based on this information, law enforcement initiated an investigation, which included the search of Biron’s residence and her computer. The search revealed videos and photographs of the minor female engaged in sexual activity with this other young male. Evidence at trial revealed that Biron had transported the minor female to Niagara Falls, Ontario, Canada in May of 2012, for the purpose of manufacturing the videos of the minor female engaged in sexual activity with this young male. The search of Biron’s computer also revealed a video of Biron herself engaged in sexual activity with the minor female.
United States Attorney Kacavas observed that “this case represents yet another example of our resolve to identify, prosecute and seek long federal prison terms for those who, like the Defendant, exploit minors for sexual purposes. As for this Defendant, her sentence effectively removes her from society for the balance of her life and eradicates the threat she poses to minors and adolescents. As for like-minded individuals who prey on our children, or who manufacture, distribute and possess images of child sexual exploitation, let this sentence serve as a warning that you will face swift and certain justice in New Hampshire.”
This case was investigated by the Federal Bureau of Investigation, Department of Homeland Security Immigration and Customs Enforcement, Customs and Border Protection, the Hillsborough County Attorney’s Office, the Manchester Police Department, the Strafford County House of Corrections and the Ontario Provincial Police. The case was prosecuted by United States Attorney John P. Kacavas and Assistant United States Attorney Helen Fitzgibbon.
Lilburn Resident Charged with Illegal Possession of FirearmsRead the Press Release
Two Silencers Stolen from Licensed Firearm Dealer
ATLANTA - Kevin S. Lahey has been indicted by a federal grand jury on charges of possessing two firearm silencers which are not registered to him in the National Firearms Registration and Transfer Record, of possessing and receiving seven firearms while being an unlawful user of controlled substances, and for making false statements in connection with the purchase of three firearms.
“This potentially dangerous situation was discovered and defused before it could escalate,” said United States Attorney Sally Quillian Yates. “Through the diligence of our federal and local law enforcement agencies, we will continue to work hard to keep our District safe and secure.”
“ATF’s mission and priority is to deny criminals access to firearms and protect the rights of law abiding citizens. When offenders illegally possess firearms that can be used against our citizens, our children and our community, ATF takes this very seriously,” said ATF Special Agent in Charge Christopher Shaefer.
According to United States Attorney Yates, the charges and other information presented in court, on February 6, 2013, a man, later identified as Lahey, stole two silencers from a Lawrenceville firearms dealer. On February 9, 2012, Snellville Police arrested Lahey in connection with an alleged shoplifting incident at Wal-Mart where he allegedly attempted to steal two laser sights, a bi-pod stand for a rifle, and a holster. Lahey resisted arrest when officers attempted to arrest him. During that fight, officers report that he dropped a loaded handgun. Lahey was released on bond on February 10. As a result of this shoplifting arrest, the Snellville police were able to identify Lahey to the Bureau of Alcohol, Tobacco, Firearms, and Explosives as the individual who stole the silencers on February 6, 2013.
After identifying Lahey, an ATF task force officer obtained a warrant for his arrest and a search warrant for his residence. On February 25, 2013, officers and agents from both the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Gwinnett County Police Department executed the search warrant. During that search, they found one of the stolen silencers attached to a .22 caliber pistol. Agents later returned and found the second silencer in the crawlspace below Lahey’s parents’ house. Neither silencer was registered to Lahey in the National Firearms Registration and Transfer Record as required by federal law. In addition, during the search, agents found multiple firearms in Lahey’s possession, marijuana, bongs, drug pipes and other drug paraphernalia, and a body armor fragmentation protective vest.
Lahey, 26, of Lilburn, Georgia was originally indicted by a federal grand jury on March 19, 2013, for possession of a silencer that was not registered to him. That indictment has now been superseded to include additional firearms charges. The superseding indictment has seven counts, including possession of a firearm silencer which is not registered to the defendant in the National Firearms Registration and Transfer Record, possession of seven firearms by an unlawful user of controlled substances, receipt of three firearms while being an unlawful user of controlled substances, and making false statements in connection with the purchase of three firearms, specifically denying that he was an unlawful user of controlled substances. The charges each carry a maximum sentence of 10 years in prison and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Lahey is scheduled to be arraigned on the superseding indictment on May 30, 2013. He first appeared in court on March 1, 2013, after he was arrested on a federal complaint. At that time, Lahey was detained without bond and remanded to the custody of the U.S. Marshal pending trial. He remains in custody.
This case is being investigated by Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Assistant United States Attorney Christopher J. Huber is prosecuting the case.
Members of the public are reminded that the indictment contains only allegations. A defendant is presumed innocent of the charges and it will be the government's burden to prove a defendant's guilt beyond a reasonable doubt at trial.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Las Vegas Bankruptcy Attorney Sentenced to Two Years in Prison for Tax EvasionRead the Press Release
LAS VEGAS, Nev. – Las Vegas bankruptcy attorney Randolph H. Goldberg was sentenced this morning to two years in prison, a $40,000 fine, and three years of supervised release, for his guilty plea to willful tax evasion, announced Daniel G. Bogden, United States Attorney for the District of Nevada. Goldberg also paid $720,719 in restitution at sentencing and must surrender his law license for two years.
“As this sentence indicates, the penalties are severe if you willfully evade or defeat payment of your federal income taxes,” said U.S. Attorney Bogden. “Cheating on your taxes is not a way to remove debt and is never a good option.”
Goldberg pleaded guilty on March 29, 2013, to one count of attempt to evade or defeat tax for the tax year 2008 and admitted that he filed tax returns that significantly understated his taxable income and attempted to hide the income through the use of nominee bank accounts.
According to the facts in the plea agreement, Goldberg’s law firm, Randolph Goldberg, Esq., was organized and incorporated under Subchapter S of the IRS Code, which made any income generated by the firm taxable individually to Goldberg. In 2009, Goldberg willfully caused the filing of false and fraudulent federal tax returns for himself and the law firm, knowing that the returns contained false and fraudulent information and understated his true income in calendar year 2008. During 2008 and 2009, Goldberg also attempted to conceal the true income of his law firm by causing proceeds generated by the firm to be deposited directly into his personal bank account and to be deposited into a bank account held by a nominee corporation, separate from his law firm practice.
Goldberg was permitted to self-report to federal prison by Aug. 22, 2013.
The case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorneys Christina M. Brown and Steven W. Myhre.
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.Laredoan Gets Max for Illegal Possession of A ShotgunRead the Press Release
LAREDO, Texas – Juan Francisco Leal, 39, of Laredo, has been ordered to federal prison for 10 years for being a felon in possession of a shotgun, United States Attorney Kenneth Magidson announced today. Leal pleaded guilty to the charge Dec. 10, 2012.
Today, U.S. District Judge Diana N. Saldaña sentenced Leal to a term of 120 months in federal prison – the maximum allowed by law. Following completion of his prison term, he will be on supervised release for three years.
Laredo Police Department (LPD) investigators interviewed Leal on Feb. 10, 2012, as a suspect in a murder in Laredo. In the course of the investigation, a Mossberg 12-gauge shotgun was found in the attic of Leal’s home. Officers also found a plastic bag containing 124.40 grams of methamphetamine. Leal stated he had acquired the shotgun for protection, because he sold drugs from his home. Leal also admitted he is a former member of the Mexican Mafia.
As a convicted felon, Leal is prohibited from possessing a firearm.
At the sentencing today, Leal asked for leniency. However, Judge Saldaña noted the defendant’s criminal history - dating to 1991 when convicted of attempted murder and two subsequent charges of alien smuggling and possessing marijuana - and stated “there is strong need to protect the community from you.”
Court records reflect that on Oct. 10, 2012, a Webb County grand jury indicted Leal for murder.
This case was brought as part of Project Safe Neighborhoods (PSN), a nationwide commitment to reduce gun and gang crime in America by networking existing local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. Since its inception in 2001, approximately $2 billion has been committed to this initiative. This funding is being used to hire new federal and state prosecutors, support investigators, provide training, distribute gun lock safety kits, deter juvenile gun crime and develop and promote community outreach efforts as well as to support other gun and gang violence reduction strategies.
The matter was investigated by the ATF in conjunction with the Laredo Police Department. Several police officers have been cross-designated as ATF task force officers working directly with the federal agency, assisting in the investigation of this and other crimes. Assistant United States Attorney Homero Ramirez prosecuted the case.
Justice Department Reaches Settlement with Leading Facility Services CompanyRead the Press Release
The Justice Department announced today that it has reached an agreement with ISS Facility Services Company resolving allegations that the company violated the anti-discrimination provision of the Immigration and Nationality Act (INA). ISS, with headquarters in San Antonio, Texas, employs approximately 15,000 employees in the United States.
The Justice Department’s investigation was initiated based on a referral from the U.S. Citizenship and Immigration Services (USCIS). The investigation focused on whether the ISS offices in Dallas and Houston were requiring non-citizens to present specific U.S. Department of Homeland Security-issued documents to establish their identity and work-authority while not making similar requests of U.S. citizens. The INA’s anti-discrimination provision prohibits employers from discriminating against noncitizens in the employment eligibility verification process by demanding more or different documents than U.S. citizens are required to present.
According to the settlement agreement, ISS agreed to ensure that all its offices complied with the company’s existing employment eligibility verification policies and procedures and to provide training of its human resources personnel on the INA’s anti-discrimination provision. ISS also agreed to pay $49,800 to the United States and to identify and compensate any individuals who may have suffered economic injuries as a result of its practices. Under the agreement, ISS’ employment eligibility verification practices will be subject to monitoring by the department for a period of two years.“Employers cannot create higher hurdles for non-U.S. citizens in the employment eligibility verification process than those required of U.S. citizens unless required by law,” said Gregory Friel, Deputy Assistant Attorney General for the Civil Rights Division. “We commend ISS for its exemplary cooperation in working with the department to identify the source of the problems in its employment eligibility verification process at two of its offices and to work with the department in addressing those problems.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. The case was handled by Linda White Andrews, an OSC trial attorney. For more information about protections against employment discrimination under the immigration laws, call the OSC’s worker hotline at 1-800-255-7688 (1-800-237-2525, TTY for hearing impaired), call the OSC’s employer hotline at 1-800-255-8155 (1-800-362-2735, TTY for hearing impaired), sign up for a no-cost webinar at www.justice.gov/about/osc/webinars.php , email [email protected] or visit the website at www.justice.gov/crt/about/osc .
Jicarilla Apache Woman Sentenced to Federal Prison for Assaulting a Navajo Woman on the Mescalero Apache ReservationRead the Press Release
ALBUQUERQUE – Earlier today, Heather Atole, 28, a member of the Jicarilla Apache Nation, was sentenced in Las Cruces federal court to 20 months in federal prison followed by two years of supervised release for her federal assault conviction. Atole also was ordered to pay $49,321.07 in restitution to cover the cost of medical treatment for the victim.
Atole initially was arrested by the Mescalero Agency of the BIA’s Office of Justice Services on tribal charges on Aug. 21, 2011, based on an assault that occurred on June 27, 2011. She subsequently was arrested by the FBI on a federal criminal complaint on Nov. 22, 2011, and was indicted on Nov. 30, 2011. The indictment charged Atole with (1) assault with a dangerous weapon and (2) assault resulting in serious bodily injury.
According to court filings, Atole repeatedly stabbed a 28-year-old Navajo woman in the early hours of June 27, 2011, during a party at a residence located on the Mescalero Apache Reservation. The victim sustained stab wounds to the upper torso, shoulder and back. Atole later told law enforcement officers that she stabbed the victim because she saw the victim kiss her boyfriend.
On Sept. 11, 2012, Atole pleaded guilty to both counts of the indictment. In entering her guilty plea, Atole admitted stabbing the victim four times with an eight-inch kitchen knife because she perceived the victim to be a romantic rival. Atole has been in federal custody since entering her guilty plea.
This case was investigated by the Las Cruces office of the FBI and the Mescalero Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
Independence Woman Indicted for Violating Civil Rights of Family by Torching their HomeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, and Roy L. Austin Jr., Deputy Assistant Attorney General for the Civil Rights Division of the Department of Justice, announced that an Independence, Mo., woman was indicted by a federal grand jury today for violating the civil rights of an African-American family by setting fire to their residence.
Victoria A. Cheek-Herrera, 33, of Independence, was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment charges Cheek-Herrera with participating in a conspiracy to threaten and intimidate an Independence family from exercising their constitutional right to reside in their home because of their race or color. It also charges Cheek-Herrera with committing a racially-motivated arson and with using fire during the commission of a felony.
According to the indictment, Cheek-Herrera conspired with others on June 26, 2008 to injure, oppress, threaten, and intimidate Larry Davis, Stacey Little and the couple’s minor children in the free exercise of their Constitutional right to occupy and rent their home in Independence, because of their race and color. Davis, Little and their children are all African American.
The indictment alleges that Cheek-Herrera discussed with others her desire to set fire to the home of Davis and Little, and that Cheek-Herrera and a co-conspirator drew a swastika and wrote the words “White Power” on the driveway to Davis and Little’s residence. Cheek-Herrera allegedly asked a juvenile acquaintance for gasoline then helped create a Molotov cocktail by filling a glass bottle with gasoline and inserting a rag into the bottle to serve as a wick. Cheek-Herrera and a co-conspirator then allegedly lit the wick and threw the gasoline-filled bottle into the side of the house that Davis and Little were renting, which set the residence on fire.
If convicted, Cheek-Herrera faces a maximum penalty of 10 years imprisonment and a fine of $250,000 for one charged count of conspiracy against rights, a maximum penalty of 10 years imprisonment and a fine of $250,000 for one charged count of interference with housing rights, and a penalty of 10 years imprisonment consecutive to any other sentence and a fine of $250,000 for one charged count of using fire during the commission of a felony.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by First Assistant U.S. Attorney David M. Ketchmark and Trial Attorney Shan Patel of the Civil Rights Division of the U.S. Department of Justice. It was investigated by the FBI.Houston Man Charged with Threatening to Bomb SynagoguesRead the Press Release
A federal complaint has been unsealed charging Dante Phearse, 32, of Houston, with calling in bomb threats to two synagogues located in Houston, announced Deputy Assistant Attorney General for the Civil Rights Division Roy L. Austin Jr. and U.S. Attorney for the Southern District of Texas Kenneth Magidson.
The sealed complaint was filed Thursday, May 16, 2013, and unsealed today. Phearse is expected to make an initial appearance in Houston tomorrow at 10:00 a.m. before U.S. Magistrate Judge Nancy Johnson. At that time, the government expects to request he be detained pending further criminal proceedings.
Phearse is charged with one count of using an instrument of interstate commerce to communicate a threat to destroy a building by means of an explosive device. The complaint and accompanying affidavit allege that on the evening of April 30, 2013, Phearse telephoned two different synagogues in Houston - Congregation Beth Israel and Congregation Or Ami - and left voice mails threatening to bomb the Jewish houses of worship on May 2, 2013.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
If convicted, Phearse faces up to 10 years in federal prison and a possible $250,000 fine.
The case is being investigated by the Houston Police Department and the FBI. Trial Attorneys Saeed Mody and Nicholas Murphy of the Civil Rights Division and Assistant U.S. Attorneys for the Southern District of Texas Ruben R. Perez and Joe Magliolo are prosecuting.