Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
23 May 2013
Houston Man Charged with Threatening to Bomb SynagoguesRead the Press Release
HOUSTON – A federal complaint has been unsealed charging Dante Phearse, 32, of Houston, with calling in bomb threats to two synagogues located in Houston, announced United States Attorney Kenneth Magidson and Deputy Assistant Attorney General for the Civil Rights Division Roy L. Austin Jr.
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. .
In convicted, he 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. Assistant United States Attorneys Ruben R. Perez and Joe Magliolo are prosecuting along with trial attorneys Saeed Mody and Nicholas Murphy of the Civil Rights Division.
Houston Area “Pastor” Charged in Real Estate Investment SchemeRead the Press Release
HOUSTON - Samuel Ray Palasota, 52, of Houston, has surrendered to federal authorities following the return of a 24-count indictment alleging he operated a fraudulent real estate investment scheme and defrauded a woman of $650,000, United States Attorney Kenneth Magidson announced today.
The sealed indictment, returned May 8, 2013, and unsealed today, charges Palasota with 21 counts of mail fraud and three counts of wire fraud. Palasota is expected to appear before U.S. Magistrate Judge Nancy Johnson at 2:00 p.m. today.
According to the indictment, Palasota held himself out as a pastor and also claimed to manage a real estate investment program, doing business under the name “The Maker’s Resources.” From in or about December 2008 through approximately December 2009, Palasota knowingly devised and intended to devise a scheme and artifice to defraud by means of material false pretenses, representations and promises, the indictment alleges. Specifically, Palasota allegedly convinced a Mississippi woman to invest her money with him in an alleged real estate investment. However, instead of investing in real estate, Palasota stole her money, according to the indictment.
The woman divorced in 2007 and looked to Palasota for spiritual guidance and emotional support, according to the indictment. During the time she was seeking guidance from him, she received approximately $1 million in her divorce settlement.
Palasota allegedly claimed to have a real estate investment program, in which he would purchase foreclosed homes in the Houston area at below-market prices and would later re-sell them for a profit. The indictment alleges Palasota told the woman he wanted investors who would partner with him to finance the purchase of the properties. As part of his scheme, Palasota claimed his real estate investment was “guaranteed” to provide a high rate of return to investors. The indictment indicates he provided the woman with an investment schedule that claimed the minimum rate of return would increase by five percent for every additional $100,000 she invested, up to a maximum of $650,000.
The woman subsequently invested the maximum $650,000 in Palasota’s scheme, according to allegations. Palasota then allegedly used those funds for his personal benefit, including paying his personal expenses and purchasing automobiles.
In furtherance of the scheme, the indictment alleges Palasota did make payments to the woman which he termed “returns on investment.” These payments, however, were not the proceeds of an investment but were simply the return of a portion of her own money, made in an effort to appear as though the so-called investment was generating income.
If convicted, Palasota faces a possible 20 years in prison and a maximum $250,000 fine for each of the 21 counts of mail fraud and the three counts of wire fraud. The indictment also includes a notice of forfeiture in the amount of $650,000.
The case in being investigated by the FBI. Assistant United States Attorney Robert S. Johnson is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Heroin Dealers Who Attempted to Elude Police Get Federal Prison TimeRead the Press Release
CHARLESTON, W.Va. – Two men who attempted to flee police in a vehicle containing illegal drugs and thousands of dollars’ cash in March 2011 were each sentenced to prison on federal drug charges, announced U.S. Attorney Booth Goodwin. Stephen Michael Hopkins, 36, of Huntington, was sentenced on May 23 to 12 years and seven months in prison. Hopkins’ co-defendant Eddie Daivon Morgan, 32, of Beckley, W.Va., was also sentenced on Wednesday to four years in prison. Hopkins previously pleaded guilty in January to aiding and abetting the possession with intent to distribute heroin. Morgan previously pleaded guilty to using a cellular telephone to facilitate the possession with intent to distribute heroin.
On March 16, 2011, officers with the Charleston Police Department responded to a call near the 2600 block of 6th Avenue in Charleston. Upon arriving at the scene, officers approached Hopkins and Morgan, both of whom were sitting inside of a parked Dodge Charger. A responding officer ordered Hopkins and Morgan to step out of the vehicle. Hopkins, who was sitting in the driver’s seat at the time, refused to obey the order given by police and drove away. Officers pursued the defendants as they fled the scene. During the police chase, Hopkins lost control of his vehicle and crashed at the intersection of 7th Street and Iowa Street in Charleston. Hopkins and Morgan attempted to flee on foot, but were apprehended by officers a short time later. Officers conducted a search of the vehicle and recovered a plastic bag underneath the driver’s seat of the vehicle. The bag contained $10,920 in cash, suspected heroin, and marijuana. The suspected heroin was submitted to the West Virginia State Police lab for testing and was found to be heroin weighing 26.6 grams.
Police also seized a cellular phone that belonged to Morgan. Text messages on the phone revealed messages that were sent by Morgan, informing various individuals that he had “dog food” for sale. The term “dog food” was used in reference to the heroin that was seized by police.
The Charleston Police Department conducted the investigation. Assistant United States Attorney Monica D. Coleman handled the prosecutions. The sentences were imposed by United States District Judge John T. Copenhaver, Jr.
Guilty Pleas in Rocky River Fish-Kill Case; Restitution Will Be Used to Restock the River with Steelhead TroutRead the Press Release
A Strongsville company and the company owner’s wife pleaded guilty for their roles in the dumping of a drum of liquid cyanide into a storm drain that flowed into the Rocky River, resulting in the death of more than 30,000 fish, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Kennedy Mint, Inc. pleaded guilty to violating of the Clean Water Act.
Teresina Montorsi, 74, pleaded guilty to obstruction of justice.
“Clean, fresh water is Ohio’s greatest natural resource,” Dettelbach said. “We are satisfied that we were able to determine who put the cyanide into the river and killed tens of thousands of fish. The restitution from this case will be used to restock the river with fish, so that people can again enjoy the natural beauty of the Rocky River.”
“Our natural resources must be protected from illegal discharges,” said Randall K. Ashe, Special Agent in Charge of U.S. EPA’s criminal enforcement program in Ohio. “This prosecution sends a clear message that crimes against the environment will not be tolerated and will be vigorously prosecuted.”
Ohio Attorney General Mike DeWine said: “Illegal dumping into Ohio sewers brings severe consequences, both for our environment and for perpetrators. We will continue to work with other agencies to bring justice to those who violate environmental laws and to protect Ohio’s valuable natural resources.”
Company owner Renato Montorsi was indicted last year, but those charges were dismissed after he wasfound to be incompetent to stand trial.
Renato and Teresina Montorsi are married and live in Grafton, Ohio, according to public records.
Kennedy Mint will pay restitution of $30,893 -- $1 for every fish killed by the illegal discharge. The money will be paid to the Ohio Department of Natural Resources and used to restock the river with steelhead trout under the terms of the plea agreement.Kennedy Mint will also make a payment to the Cleveland Metroparks. The amount will be determined at sentencing, which is scheduled for Aug. 29.
Renato Montorsi owned and operated Kennedy Mint, which is located in Strongsville. Kennedy Mint specializes in collectible coins, but previously conducted metal plating and printing operations. The East Branch of the Rocky River is near the Kennedy Mint facility and storm water from that location’s parking lot flows into the East Branch of the Rocky River, according to court documents.
On April 16, 2012, Montorsi, with assistance from an employee, put two drums into a dumpster outside Kennedy Mint. On April 17, the waste hauling company declined to dispose of the contents of the dumpster because of the two drums inside, according to court documents.
On April 18, Montorsi moved the drums from the dumpster and placed them next to the storm drain in the Kennedy Mint parking lot, according to court documents.
Later that day, Montorsi used a hammer and sharp metal tool to punch a hole near the bottom of a drum that included a poison label featuring a skull and cross bones. After punching the hole, liquid cyanide in the drum was discharged into the storm drain and eventually the East Branch of the Rocky River, according to court documents.
Around April 22, the Ohio Department of Natural Resources received reports of dead fish in the East Branch of the Rocky River. Nearly every fish was dead downstream for the next three miles, according to the court documents.
The Ohio DNR counted approximately 30,893 dead fish in that three-mile stretch of the river, due to the discharge of cyanide, according to court documents.
On April 25, personnel from the Ohio Environmental Protection Agency asked to enter the Kennedy Mint facility to look for the drums, which they did not locate. After they left, Renato Montorsi, with help from Teresina Montorsi, moved two drums from Kennedy Mint to their residence so they would not be discovered if investigators returned, according to court documents.
On June 22, Teresina Montorsi gave permission to U.S. EPA agents to search their home without a warrant, at which point the agents found the punctured drum and another drum that contained cyanide, according to court documents.
This case is being prosecuted by Special Assistant U.S Attorney Brad J. Beeson following an investigation by the following agencies: United States Environmental Protection Agency, Criminal Investigation Division; Ohio Bureau of Criminal Identification and Investigation; the Northeast Ohio Regional Sewer District; the Ohio Environmental Protection Agency, Office of Special Investigations; the Ohio Department of Natural Resources, Division of Wildlife, and the Cleveland Metroparks Rangers, all members of the Northeast Ohio Environmental Crimes Task Force.
People can report possible environmental violations to Ohio EPA at 800-282-9378 or U.S. EPA at www.epa.gov/tips
Grand Jury Charges 18 in Dayton-Portsmouth Heroin Trafficking ConspiracyRead the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerCINCINNATI – A federal grand jury has charged nine people from Portsmouth, Ohio and eight people from the Dayton, Ohio area with engaging in a two-year conspiracy to deliver heroin from Dayton to Portsmouth where they distributed it out of seven Portsmouth locations including two motels. The eighteenth defendant lives in Lancaster, Ohio.
All are charged with conspiracy to possess with intent to distribute more than one kilogram of heroin, a crime punishable by at least ten years and up to life in prison.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Office (FBI), Ohio HIDTA Director Derek Siegel, Scioto County Sheriff Marty Donini, Montgomery County Sheriff Phil Plummer, Portsmouth Police Chief Robert Ware and Dayton Police Chief Richard Biehl announced the indictment which was unsealed today following arrests by federal and local law enforcement officers.
The 29-count indictment charges members of the conspiracy with other crimes including possession with intent to distribute heroin, distribution of heroin and maintaining a place for the purpose of distributing heroin. Each of those crimes is punishable by a sentence ranging from probation to 20 years in prison.
If convicted of any of the crimes alleged in the indictment, the defendants must also forfeit any proceeds or profits they received from the conspiracy, in addition to any prison sentence they may receive.
U.S. Attorney Stewart commended the cooperative investigation by members of the HIDTA Task Force, the Ohio State Highway Patrol and Scioto County Prosecutor Mark Kuhn.
The defendants will appear before a U.S. Magistrate Judge in Cincinnati who will determine whether or not they will be released on bond and schedule dates for future court appearances.
An indictment is only a charge and is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
A list of those charged is below.
United States v. Shawn Shank, et al.
PORTSMOUTH RESIDENTS CHARGED
Jackie Tupper, 20
Josh Walls, 33
Jerry Walls, 61
Conna Mounts, 55
Darryl Smith, aka “Slim”, “June”, 25
Brandon Jackson, 37
Robert Garmany, aka “Black Rob”, 35
Keith Goodwin, aka “Unc”, 58
Jeanette Jennings, 34DAYTON AREA RESIDENTS CHARGED
Shawn Shank, aka “Red,” 37, Dayton
Michael Shank, aka “P.J.” “No-No”, 42, Moraine
Stevie Parson, aka “Will”, 44, Dayton
Aaron Knolton, aka “Lil No No”, “Youngin”, 24, Dayton
Kendall Mabry, aka “Tweety Bird”, 29, Dayton
Porsha Smith, 24, Dayton
Vita Williams, 34, Dayton
Stephone McGhee, 36, DaytonOTHER
Tara Loehner, 24, LancasterGovernment Contractor Pleads Guilty to Major Government FraudRead the Press Release
Unlawfully Obtained $4.4 Million In Contracts Intended For Disadvantaged Small Businesses
ALEXANDRIA, Va. – Michael Brian Dunkel, 59, of Merritt Island, Fl., pleaded guilty today to fraudulently obtaining more than $4.4 million in government contract payments that should have gone to disadvantaged small businesses.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; National Aeronautics and Space Administration (NASA) Inspector General Paul K. Martin; Small Business Administration (SBA) Inspector General Peggy E. Gustafson; Defense Criminal Investigative Service (DCIS) Special Agent in Charge of Mid-Atlantic Field Office Robert E. Craig; General Services Administration (GSA) Inspector General Brian D. Miller; and Department of Homeland Security (DHS) Deputy Inspector General Charles K. Edwards made the announcement after the plea was accepted by United States District Judge Claude M. Hilton.
Dunkel was charged by criminal information on May 23, 2013, with one count of major government fraud. Dunkel faces a maximum penalty of 10 years in prison when he is sentenced on October 4, 2013. As part of his plea agreement, Dunkel has agreed to forfeit $2.9 million.
According to court documents, Dunkel admitted that in 2005, he learned that Keith Hedman, an executive at an Arlington-based security service consulting company referred to as Company A in court records, illegally controlled Company B, another Arlington-based security service consulting company. Company B was a participant in the SBA “Section 8(a)” program, which enables certain small businesses to receive sole-source and competitive-bid contracts set aside for minority-owned and disadvantaged small businesses. Although Hedman controlled Company B, Company B had obtained its 8(a) status based on the disadvantaged status of Dawn Hamilton, its nominal owner.
Dunkel admitted that he agreed to pay Hedman and Company B a fee in exchange for Company B allowing Dunkel to use its 8(a) status to obtain NASA and other U.S. government contracts. Although Company B was required to perform at least 50% of the work on the contracts and had represented it would do so, no Company B employees actually performed any work. Instead, Dunkel and others did all of the work as independent contractors, but they concealed that fact from the government agencies. In addition, Dunkel submitted fraudulent proposals and invoices to hide their scheme, used a third-party company’s Federal Employer Identification Number to prevent reporting of his contractor income to the IRS, and did not pay any income taxes on the income he received from Company B.
Seven defendants, including Hedman and Hamilton, have previously pleaded guilty in connection with the government contracting fraud scheme and a related bribery scheme.
This case is being investigated by NASAOffice of the Inspector General (OIG), the SBA -OIG, DCIS-OIG, GSA-OIG, DHS-OIG, and with assistance from the Defense Contract Audit Agency. Assistant U.S. Attorneys Chad Golder and Ryan Faulconer, a former Trial Attorney for the Criminal Division’s Fraud Section, are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Glenham Man Pleads Guilty to Distribution of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that Randall Murray, age 50, of Glenham, South Dakota appeared before U.S. District Judge Charles B. Kornmann on May 20, 2013 and pled guilty to Count II of the Indictment that charged him with Distribution of a Controlled Substance.
The maximum penalty upon conviction is 5 years of imprisonment, a $250,000 fine, or both; 2 years of supervised release, an additional 2 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from an incident wherein Murray, on or about June 24, 2011, did knowingly and intentionally distribute marijuana, a Schedule I controlled substance.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Murray was released on bond pending sentencing which has been set for September 23, 2013.
Frank Xavier Manyen and Julie Ann Rozell 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 22, 2013, before U.S. District Judge Donald W. Molloy, FRANK XAVIER MANYEN, a 32-year-old resident of Laurel, and JULIE ANN ROZELL, a 38-year-old resident of Billings, appeared for sentencing.
MANYEN was sentenced to a term of:
Prison: 60 months
Special Assessment: $100
Community Service: 400 hours
Supervised Release: 4 years
ROZELL was sentenced to a term of:
Prison: 57 months
Special Assessment: $100
Community Service: 400 hours
Supervised Release: 5 years
They were sentenced in connection with their guilty pleas to conspiracy to possess with intent to distribute and distribution of methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
In October of 2010, the FBI Safe Streets Task Force (BSSSTF) received information about a large scale methamphetamine distribution organization operating in Yellowstone County.
In the spring of 2011, law enforcement began performing electronic surveillance on C.M., an individual living in Billings. Investigators discovered that C.M., D.M. and A.H. began supplying the larger methamphetamine organization in late 2010 with methamphetamine after the prior source of supply had a run in with law enforcement. C.M., D.M. and A.H., had several distributors that sold the methamphetamine for the organization. One of the distributors was ROZELL. ROZELL admitted to distributing approximately four pounds of methamphetamine for the organization. One of her distributors was MANYEN.
During the investigation law enforcement learned that MANYEN was a distributor of methamphetamine for ROZELL from approximately March 2011, and continuing thereafter until late January 2012. MANYEN worked with Heather Manyen to distribute the methamphetamine obtained from ROZELL - MANYEN and Heather Manyen together distributed the methamphetamine they obtained from ROZELL in the greater Billings area. MANYEN and Heather Manyen obtained approximately 700 grams of methamphetamine from ROZELL, which they in turn distributed to their own customers.
Heather Manyen pled guilty to federal charges and is awaiting sentencing.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that they will likely serve all of the time imposed by the court. In the federal system, they do 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 Billings Big Sky Safe Streets Task Force and High Intensity Drug Trafficking Area (HIDTA) Task Force.
Four Men Indicted for Using Stolen Information to File over 1,000 False Tax Returns That Claimed RefundsRead the Press Release
MINNEAPOLIS—Recently in federal court, four men were indicted for using stolen identification information to file tax returns that claimed false refunds. On May 21, 2013, Frantz Pierre, Ronnie Bussell, Christopher Torh, and Junior Tervil were charged with one count of conspiracy to defraud the United States. Pierre was also charged with one count of money laundering.
The indictment alleges that from July 2010 to May 2011, the defendants conspired with each other and others to defraud the Internal Revenue Service (“IRS”) by seeking tax refunds for which they were not entitled. Allegedly, the co-conspirators obtained the personal identifiers of other people and used that information, without those people’s knowledge, to create false 2009 and 2010 federal income tax returns that claimed refunds. In addition, the co-conspirators reportedly created false W-2 forms showing fabricated amounts of earnings and tax withholdings. The co-conspirators allegedly filed approximately 1,066 false tax returns, claiming approximately $6.9 million in fraudulent refunds.
The indictment also alleges that in order to receive the tax refunds, Pierre, Bussell, Torh, Tervil, and others created and established fictitious businesses in Minnesota that purportedly were involved in the preparation of income tax returns. The co-conspirators reportedly recruited others in Minnesota and elsewhere to do the same. Then, bank accounts were allegedly opened for each of the fake businesses, and the tax refunds were electronically deposited into those accounts. Finally, the Indictment alleges Pierre used some of the funds derived from this fraud scheme to purchase a residence in Parkland, Florida.
If convicted, the defendants face a potential maximum penalty of ten years in prison on the conspiracy count, and Pierre faces an additional potential maximum penalty of ten years on the money laundering count. Any sentence would be determined by a federal district court judge.
This case is the result of an investigation by the IRS-Criminal Investigation. It is being prosecuted by Assistant U.S. Attorney Karen B. Schommer.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial. Per U.S. Department of Justice policy, the U.S. Attorney’s Office is not allowed to provide the age and city of residence for defendants charged in criminal tax cases.Four Men Arrested and Detained in IRS InvestigationRead the Press Release
Arrests are Part of IRS’s Stolen Identity Refund Fraud (SIRF) Initiative
DALLAS — Four individuals remain in federal custody on charges related to their involvement in a scheme to obtain and use stolen identities to steal federal income tax refunds. The four men, Michael Hutchinson Agu, 38, of Murphy, Texas; Benjamin Kinyua, 34, of Plano, Texas; Thomas Nganga Muya, of Atlanta, Georgia; and Harry Fabrice Cheickh Amont, 29, of Lithonia, Georgia; were arrested in an operation conducted by special agents with Internal Revenue Service Criminal Investigation (IRS-CI). They have all made their initial appearances before a U.S. Magistrate Judge, where identifying information was provided, and have been detained pending further order of the Court. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Agu and Kinyua are each charged, in separate complaints, with identity theft, theft of government funds and aiding and abetting. A separate complaint charges Muya and Amont with theft of government funds and aiding and abetting.
According to the affidavits filed with the complaints, in recent years, identification theft schemes have become more sophisticated, more prevalent and increasingly more popular with criminals as a way to obtain illegal funds with little risk of detection or prosecution. Identification theft schemes often involve a network of individuals needed to complete different stages or aspects of the scheme. The affidavits further note that often perpetrators of identity theft cases are securing false identities, filing false tax returns, securing false tax refunds and moving on within days or weeks. Many of the ID theft schemes involve foreign nationals operating within and outside of the U.S, according to the affidavits.
According to the affidavits filed with the complaints, in recent years, identification theft schemes have become more sophisticated, more prevalent and increasingly more popular with criminals as a way to obtain illegal funds with little risk of detection or prosecution. Identification theft schemes often involve a network of individuals needed to complete different stages or aspects of the scheme. The affidavits further note that often perpetrators of identity theft cases are securing false identities, filing false tax returns, securing false tax refunds and moving on within days or weeks. Many of the ID theft schemes involve foreign nationals operating within and outside of the U.S, according to the affidavits.
The complaints outline the fencing of stolen IRS refund checks, including a United States Treasury check for an IRS refund in the amount of almost $600,000 that was were obtained using stolen identification information. The defendants worked as brokers or check cashers –cashing these checks for a percent of their face value.
A federal criminal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. The penalty, upon conviction, for the charged offense of identity theft is 15 years in federal prison and a $250,000 fine. The penalty, upon conviction, for the charged offense of theft of government funds is 10 years in federal prison and a $250,000 fine.
IRS-CI is investigating. Assistant U.S. Attorney Christopher Stokes is in charge of the prosecution.
Fort Pierre Man Pleads Guilty to Failure to AppearRead the Press Release
United States Attorney Brendan V. Johnson announced that Brent Flood, age 24, of Fort Pierre, South Dakota appeared before U.S. District Judge Roberto A. Lange on May 20, 2013 and pled guilty to the Indictment that charged him with Failure to Appear.
The maximum penalty upon conviction is 5 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release; an additional 2 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from an incident wherein Flood, who was indicted by a federal grand Jury in September 2012 for two counts of Distribution of a Controlled Substance, did not show up for his change of plea scheduled for January 22, 2013. Flood knew he was required to appear for this proceeding, but failed to appear as directed. He was later apprehended.
The investigation was conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Flood was remanded to the custody of the U.S. Marshals Service pending sentencing which has been set for July 9, 2013.
Fort Myers Man Sentenced to Life in Prison for Selling HeroinRead the Press Release
Fort Myers, Florida - U.S. District Judge John E. Steele sentenced Epifanio H. Benitez (61, Fort Myers) yesterday to life in federal prison for selling heroin within 1,000 feet of Lee Middle School. The court also sentenced Benitez to a concurrent term of 15 years in prison for three counts of selling heroin, and one count of possessing ammunition as a convicted felon. Based on his multiple prior drug convictions, Benitez was sentenced as an armed career criminal. Benitez pleaded guilty on March 4, 2013.
According to court documents, between May and November 2011, Benitez was involved in seven drug transactions with undercover law enforcement. He sold heroin on four occasions to undercover detectives from the Fort Myers Police Department. He sold heroin on three occasions to undercover detectives from the Lee County Sheriff's Office. Benitez sold the heroin within 1,000 feet of Lee Middle School during four of the transactions.
A subsequent search warrant was executed at Benitez’s residence, culminating in his arrest. Among the items seized during the execution of the search warrant were forty-six rounds of .40 S&W ammunition found in Benitez’s bedroom. As a previously convicted felon, Benitez is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the Fort Myers Police Department, the Lee County Sheriff's Office, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney Robert E. O’Neill, along with Julie Torres, Special Agent In Charge, ATF Tampa Field Division, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Former Texas Police Officer Ordered to Federal Prison for Deprivation of Civil RightsRead the Press Release
Frank Carter, 43, a former officer with the Laredo, Texas, Police Department (LPD), has been sentenced to prison following his conviction for violating the civil rights of an arrestee, announced Assistant Attorney General for the Civil Rights Division Thomas E. Perez and U.S. Attorney Kenneth Magidson. Carter pleaded guilty on Thursday, March 7, 2013.Today, U.S. District Judge Diana Saldana, who accepted the guilty plea, handed Carter a sentence of a year and a day in federal prison to be immediately followed by one year of supervised release. In handing down the sentence, Judge Saldana commended Carter for accepting responsibility for his actions. Carter will also have to complete 75 hours of community service in the first six months following his release from prison.
Carter admitted that on May 26, 2012, while using his authority as a LPD officer, he struck a male victim who was handcuffed and detained in the backseat of Carter’s patrol car. Carter admitted he struck the victim several times.
According to information presented in court at the time of the plea, rear facing dash camera audio and video recordings revealed Carter had yelled obscenities at the victim while he punched the victim in the head and body. Carter also repeatedly slammed the victim’s face into the back of the seat. The victim remained handcuffed during the entire incident and never resisted or attempted to harm Carter.
Carter was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by the LPD, FBI and Texas Rangers. Civil Rights Division Trial Attorneys Ryan Murguia and Christopher Lomax and Assistant U.S. Attorney Ruben R. Perez prosecuted the case.
Former Sheppard Air Force Base Employees and Contractors Sentenced for Conspiring to Unlawfully Disclose and Obtain Sensitive Government Contract InformationRead the Press Release
DALLAS — Three of the four individuals who pleaded guilty last year to their roles in a conspiracy to unlawfully disclose and obtain sensitive government contract information, were sentenced today in federal court in Dallas by U.S. District Judge Reed C. O’Connor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
U.S. Attorney Saldana said, “The public deserves to have absolute confidence that government employees are honest and above reproach in their dealings with government funds and private contractors. This prosecution sends a strong message that they will be held accountable for their betrayal of the public trust.”
John Torrance Gilmore, III, 53, of Wichita Falls, who was the Lead Supervisory Engineer at Sheppard Air Force Base (SAFB), and the most culpable in the scheme, was sentenced to 60 months in federal prison. He pleaded guilty to one count of conspiring to defraud the U.S. and conspiring to unlawfully disclose sensitive source information.
Another former employee at SAFB, Larry Thomas Ballard, 60, also of Wichita Falls, pleaded guilty to the same offense and is scheduled to be sentenced on July 19, 2013.
Two government contractors, John Carmon Freeman and Miguel Angel Hughes, were sentenced to 18 months and eight months, respectively. Each pleaded guilty to one count of conspiring to defraud the U.S. and conspiring to unlawfully obtain sensitive source information.
In addition, Judge O’Connor ordered that Gilmore and Hughes pay $6,095 restitution to the Department of Defense. All three defendants must surrender to the Bureau of Prisons on June 20, 2013.
As the Lead Civil Engineer in the Civil Engineering Squadron’s engineering department, Gilmore supervised several engineers, including Ballard. The Squadron’s mission was to maintain SAFB facilities and provide civil engineering support to the base.
Hughes, 63, of Fort Worth, Texas, owned Hughes and Guzman Construction Services, LLC, (Hughes Building Services), a roofing contractor and subcontractor with offices in Fort Worth, Dallas and Balch Springs, Texas. Freeman, 50, of Vernon, Texas, owned Freeman Construction, a road-building and paving contractor, with offices in Wichita Falls and Vernon.
The four defendants conspired together to impair and obstruct the government’s ability to have a competitive and unbiased selection of contractors — depriving the government of its right to exclusive use and control over sensitive source selection information, to include contractor bid information, government pricing and cost estimates and contractor proposal information. The defendants conspired together to knowingly disclose and obtain sensitive source selection information related to several contracts’ specifications, including those for roof and pothole repairs and the liquid oxygen maintenance facility.
According to plea documents filed in the case, the defendants conspired together and with others during the period from at least the mid 1990's through 2009, to defraud the 82nd Contracting Squadron and the Department of the Air Force by depriving the U.S. of the lawful right to exclusive use and control over sensitive source selection information, such as contractor bid information, government pricing and cost estimates, and contractor proposal information, on several contracts. They also conspired together and with others to disclose or obtain sensitive source selection information on several contracts.
Gilmore and Ballard provided sensitive source information to their friends, Freeman and Hughes, to give them a competitive advantage or financial benefit in connection with several government contracts. Over several years, Freeman and Hughes gave Gilmore and Ballard personal gifts and benefits in return for their preferential treatment in connection with several government contracts.
In the mid to late 1990's, Freeman paid large sums of cash to Gilmore. Gilmore supervised several government inspectors who inspected Freeman’s work and Freeman felt it would be good to keep Gilmore happy so that he would continue to treat Freeman favorably. On at least one occasion, Freeman gave $10,000 in cash to Gilmore, expecting Gilmore to accept and approve Freeman’s work on future government contracts, even if there were discrepancies and deficiencies in Freeman Construction’s contract work. In addition, to curry favor with Gilmore, Hughes took him to several gun shows and paid his travel expenses.
When Gilmore became aware of this criminal investigation, he told Freeman to lie about his cash payments to him. After initially lying about them to investigators, Freeman later admitted that he had paid cash bribes to Gilmore.
The investigation was conducted by the Defense Criminal Investigative Service and the Air Force Office of Special Investigations.
Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
Former Postal Worker Pleads Guilty to Stealing Packages, One with GunsRead the Press Release
FLORENCE – A former U.S. Postal worker pleaded guilty Wednesday in federal court to conspiracy and mail theft in connection with a scheme to redirect packages, including one containing 11 handguns, to an accomplice, announced U.S. Attorney Joyce White Vance and Postal Service, Office of Inspector General, Executive Special Agent in Charge Max Eamiguel.
RODNEY DEWAYNE CLARK, 34, of Birmingham, entered his plea before U.S. District Judge Inge P. Johnson to one count of conspiracy to defraud the United States and two counts of theft of mail by an officer or employee of the Postal Service. Clark is scheduled for sentencing Aug. 22.
According to court records, Clark worked at the Postal Service's Birmingham Distribution Center handling and directing mail in June 2012 when he conspired with an associate, Daltery Robinson of Birmingham, to embezzle packages by affixing new mailing labels to them and redirecting them to his associate's home.
Clark notified Robinson by text message or phone call of the pending delivery of embezzled mail. On June 7, 2012, according to court records, Clark sent a text message about a stolen package he was redirecting to Robinson's address, which contained 11 Jimenez handguns. The text read: "Got one comn pow pow $ROCAFELLAS$." That package had been addressed to Gold Star Pawn in Bessemer.
Once the packages were delivered to Robinson, Clark would pay him $200 for each package, according to court records.
Robinson pleaded guilty in November to one count of theft or receipt of mail matter.
Former Nanny Receives 102 Months in Prison for Murdering 9-Month-Old in Her CareRead the Press Release
ALEXANDRIA, Va. – Amy Hunter, age 27, of Longview, Washington, was sentenced today to 102 months in prison, followed by three years of supervised release, for the murder of a nine-month-old baby that was in her care.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia and Michael T. Monroe, Special Agent In Charge Naval Criminal Investigative Service (NCIS) made the announcement after sentencing by United States District Judge Anthony J. Trenga.
Hunter previously pleaded guilty on January 16, 2013.
According to court documents, the defendant admitted that on April 26, 2011, in her home on the Quantico United States Marine Corps Base, she murdered C.P., a child of nine- months-of-age. The defendant had been providing daily care for C.P. and the defendant’s own daughter in her home on Quantico Marine Base which she shared with her husband, an active-duty Marine.
The court documents further state that at approximately 9:23 a.m., Hunter placed a 911 call reporting that C.P. had hit her head and lost consciousness. C.P. was airlifted to Inova Fairfax Hospital where she was placed on life support. C.P. had severe traumatic brain injuries, including cerebral edema, subdural hemorrhages, numerous occipital fractures, and significant, diffuse retinal hemorrhages. The hospital also identified a healing rib fracture that they believed was more than three weeks old.
C.P. never regained consciousness and was removed from life support on the morning of April 28, 2011. The lead physician determined that, in his opinion, C.P.’s death was due to the results of a combination of blunt force trauma, due to an impact to the back of the head, and violent rotational head trauma, such as from shaking. An autopsy conducted by an Assistant Chief Medical Examiner for the Commonwealth of Virginia found the cause of C.P.’s death was craniocerebral and spinal cord injuries and the manner of death a homicide.
In an interview, the defendant admitted that she repeatedly shook C.P., and caused C.P.’s head to strike the wall because C.P. was screaming. The defendant also admitted she shook C.P. on a separate occasion approximately three weeks earlier.
This case was investigated by NCIS. Assistant United States Attorney Patricia Haynes and Special Assistant United States Attorney Stacey Luck are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.usdoj.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on http://pacer.uspci.uscourts.gov.
Former Laredo Police Officer Ordered to Federal Prison for Deprivation of Civil RightsRead the Press Release
LAREDO, Texas – Frank Carter, 43, a former officer with the Laredo Police Department (LPD), has been sentenced to prison following his conviction for violating the civil rights of an arrestee, United States Attorney Kenneth Magidson announced today along with Assistant Attorney General for the Civil Rights Division Thomas E. Perez. Carter pleaded guilty on Thursday, March 7, 2013.
Today, U.S. District Judge Diana Saldana, who accepted the guilty plea, handed Carter a sentence of a year and a day in federal prison to be immediately followed by one year of supervised release. In handing down the sentence, Judge Saldana commended Carter for accepting responsibility for his actions. Carter will also have to complete 75 hours of community service in the first six months following his release from prison.Carter admitted that on May 26, 2012, while using his authority as a LPD officer, he struck a male victim who was handcuffed and detained in the backseat of Carter’s patrol car. Carter admitted he struck the victim several times.
According to information presented in court at the time of the plea, rear facing dash camera audio and video recordings revealed Carter had yelled obscenities at the victim while he punched the victim in the head and body. Carter also repeatedly slammed the victim’s face into the back of the seat. The victim remained handcuffed during the entire incident and never resisted or attempted to harm Carter.
Carter was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by the FBI, Texas Rangers and LPD. Assistant United States Attorney Ruben R. Perez and Civil Rights Division Trial Attorneys Ryan Murguia and Christopher Lomax are prosecuting the case.Former Lake County Man Sentenced to More Than Six Years in Prison for $1.6 Million Investment Fraud SchemeRead the Press Release
CHICAGO – A former Lake County man was sentenced today to more than six years in federal prison for cheating at least 20 victims of approximately $1.6 million in an investment fraud scheme. The defendant, WILLIAM BLOCK, promised investors substantial profits, in some cases up to 300 percent returns over just six months, and instead used the money to finance a lavish lifestyle.
Block, 54, formerly of Lake Forest, who has been in custody since he was arrested in November 2008, was sentenced to 75 months in prison by U.S. District Judge Harry Leinenweber. Block was also ordered to forfeit approximately $1.6 million, as well as to pay restitution totaling approximately $1.9 million, which also includes the proceeds of a separate $300,000 bank fraud. Block did not admit guilt but was found guilty by Judge Leienweber earlier this month after conceding that the government could provide him guilty.
The government’s proof established that between May 2002 and November 2008, Block operated an investment fraud scheme in which he falsely told at least 20 individual investors that if they gave him money, ranging from tens of thousands to hundreds of thousands of dollars, he could pay fees and costs to recover certain monies to which he was entitled and the investor would reap a financial reward. As a result, Block fraudulently obtained about $1.6 million from his victims.
In fact, Block’s representations were bogus, and he converted the victims’ funds for a variety of personal and living expenses, including cigars, limousine services, clothing, travel, wine, and a trip on a private plane to view a yacht that he represented he was considering for purchase.
As relevant conduct at sentencing, the government also established that Block engaged in a separate bank fraud scheme in 2007, by using a $300,000 check that he knew had ‘bounced,’ and then using at least $190,000 of the proceeds to obtain an official check from AmCore Bank. He used the proceeds from that official check for a variety of personal expenses, including cigars, a $2,600 watch, rounds of golf, and payments to a girlfriend.
The sentence was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The government was represented by Assistant U.S. Attorneys Kaarina Salovaara and Jessica Romero.
The case falls under the umbrella of the Financial Fraud Enforcement Task Force, which includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit: StopFraud.gov.
Former Controller of Stamford Company Admits Embezzlng More Than $3.4 MillionRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that THOMAS J. TUREY, 64, of Norwalk, waived his right to indictment and pleaded guilty today before United States Magistrate Judge Holly B. Fitzsimmons in Bridgeport to one count of wire fraud related to his embezzlement of more than $3.4 million.
According to court documents and statements made in court, TUREY served as the controller for a market research company located in Stamford. As controller, TUREY’s responsibilities included aggregating the company’s monthly revenue and expense results, managing the company’s accounts receivable, performing financial analysis and reporting, and overseeing the company’s bookkeeper. TUREY also was responsible for the company’s general ledger and was in charge of conducting the company’s bank reconciliations. Between August 2005 and January 2013, TUREY embezzled approximately $3,462,435 from the company by writing checks to himself or to a fictitious entity for his personal benefit, and depositing those funds into bank accounts he controlled. TUREY made numerous false entries in the company’s books and records to conceal this scheme.
The majority of the embezzled funds were subsequently transferred into TUREY’s online brokerage account.
TUREY is scheduled to be sentenced by United States District Judge Janet C. Hall in New Haven on August 20, 2013, at which time TUREY faces a maximum term of imprisonment of 20 years. He has been released on a $300,000 bond since his arrest on February 14, 2013.
This matter is being investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Paul A. Murphy.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Former Chicago Police Officer and Two Members of Latin Kings Street Gang Sentenced in Indiana for Racketeering<br /> Conspiracy and Related CrimesRead the Press Release
A former Chicago police officer and two members of the Latin Kings street gang were sentenced to prison today in Hammond, Ind., federal court for racketeering conspiracy and related crimes.
Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney David Capp of the Northern District of Indiana made the announcement following the sentencing hearings before U.S. District Judge Rudy Lozano in the Northern District of Indiana.
A former officer with the Chicago Police Department, Antonio C. Martinez, Jr., 40, of Chicago, was sentenced today to 144 months in prison after pleading guilty on Nov. 18, 2011, to racketeering, drug, and robbery conspiracies and other related charges. According to court records, Martinez and another officer committed armed robberies on behalf of a Latin Kings gang member – in some instances while in uniform and driving police-issued vehicles. They stole drugs, weapons and cash, and in some instances they were given a portion of the funds they stole as payment for committing the armed robberies.
Hiluterio Chavez, aka “Tails,” 37, of Chicago, was sentenced today to 240 months in prison after pleading guilty on Jan. 24, 2012, to racketeering and drug conspiracies. Chavez, who became a Latin Kings member at an earlier age, admitted in court that he traveled with other Latin Kings leadership from the Chicago area to Texas to facilitate the organization of the Latin Kings in Texas and to ensure their allegiance to the Chicago Latin Kings. Among other crimes, Chavez participated in a robbery with Martinez and presented himself as a law enforcement officer.
Jermaine Ellis, aka “J-Dub,” 21, of Chicago, was sentenced today to 205 months in prison after pleading guilty on July 30, 2010, to racketeering conspiracy. Ellis, who also became a Latin Kings member at an early age, admitted that while a juvenile he participated in the shooting deaths of James Walsh and Gonzalo Diaz in Griffith, Ind., on Feb. 25, 2007.
Court records allege that the Latin Kings is a nationwide gang that originated in Chicago and has branched out throughout the United States. The Latin Kings is a well-organized street gang that has specific leadership and is composed of regions that include multiple chapters.
The Latin Kings enforces its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, assault and threats against those who violate the rules or pose a threat to the Latin Kings. Members are required to follow the orders of higher-ranking members, including taking on assignments often referred to as “missions.”
Twenty-three Latin Kings members and associates have been indicted in this case. Aside from Martinez, Ellis and Chavez, 19 of the other defendants pleaded guilty and one remains a fugitive.
This case was investigated by the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; ICE Homeland Security Investigations; the National Gang Intelligence Center; the Chicago Police Department; the Houston Police Department; the Griffith Police Department; the Highland Police Department; the Hammond Police Department; and the East Chicago Police Department.The case is being prosecuted by Joseph A. Cooley of the Criminal Division’s Organized Crime and Gang Section and David J. Nozick of the U.S. Attorney’s Office for the Northern District of Indiana. Andrew Porter of the U.S. Attorney’s Office for the Northern District of Illinois provided significant assistance.
Five Men Charged with Kidnapping Meriden Residents, Robbing Fairfield Jewelry StoreRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut; Joseph P. Faughnan, United States Marshal for the District of Connecticut; Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; Fairfield Police Chief Gary MacNamara and Meriden Police Chief Jeffry Cossette today announced that five individuals have been charged by federal criminal complaint for their participation in the kidnapping of four Meriden residents and the robbery of a Fairfield jewelry store on April 11, 2013.
“We applaud the excellent work of the investigative agencies, the U.S. Marshals Service, the FBI, and the Fairfield and Meriden Police Departments, who are responsible for these swift arrests,” stated Acting U.S. Attorney Daly. “Our Office thanks them for their professionalism and dynamic work in this difficult and important investigation.”
“This is an outstanding example of the positive results that occur when investigative agencies from all levels of government and jurisdictions work together for a common goal,” stated U.S. Marshal Faughnan. “Fortunately these individuals were arrested before committing similar crimes that place the lives of innocent persons at risk.”
“Today’s arrests are yet another example of how dedicated and talented investigators from multiple agencies worked together to quickly identify and apprehend those responsible for violent crimes,” stated FBI Special Agent in Charge Mertz. “This investigation will continue until there is justice for the victims.”
“This is a great example of Connecticut law enforcement working together,” stated Fairfield Police Chief MacNamara. “I want to thank the Fairfield and Meriden officers and detectives, as well as the U.S. Marshals in Connecticut, the Connecticut FBI and the U.S. Attorney’s Office. These individuals tried to exploit our jurisdictional boundaries and this group of law enforcement proved those boundaries are just lines on a map.”
As alleged in criminal complaints that were unsealed today, at approximately 9:00 p.m. on April 11, at least four men wearing masks and gloves, two of whom were armed with handguns, broke into an apartment on Gravel Street in Meriden, Conn., bound four victims with duct tape and covered their heads with pillowcases, towels and jackets. Three of the perpetrators then forced two of the victims into a victim’s vehicle and drove to Lenox Jewelers in Fairfield, Conn., where the two victims worked. At the store, the perpetrators stole jewelry, watches and loose diamonds valued at between four and five million dollars. They then fled in the victim’s car, leaving the two victims bound inside the store.
The following five individuals are charged with federal kidnapping, robbery and firearms offenses:
TIMOTHY FORBES, 31, of Allentown, Pa.
WILLIAM DAVIS, 25, of Allentown, Pa.
JEFFREY HOUSTON, 26, of Allentown, Pa.
CHRISTOPHER GAY, 27, of Bronx, N.Y.
KASAM HENNIX, 39, of Easton, Pa.FORBES has been in custody in Pennsylvania since his arrest on state charges earlier this month.
DAVIS, HOUSTON, GAY and HENNIX were arrested yesterday. A search of DAVIS’s residence resulted in the seizure of jewelry, high-end watches and approximately $60,000 in cash. A search of GAY’s Bronx hotel room led to the seizure of more jewelry, watches and approximately $50,000 in cash.HOUSTON and GAY appeared today before U.S. Magistrate Judge William I. Garfinkel in Bridgeport, Conn., and were ordered detained. DAVIS and HENNIX appeared before U.S. Magistrate Judge Henry S. Perkin in Allentown and are also detained.
Each of the defendants is charged with kidnapping, which carries a maximum term of imprisonment of 20 years, Hobbs Act Robbery, which carries a maximum term of imprisonment of 20 years, and use of a firearm during and in relation to a crime of violence, which carries a consecutive term of imprisonment of at least five years.
Acting U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. The defendant is entitled to have this matter presented to a grand jury and, in the event an indictment is returned, he is entitled to a trial at which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
This matter is being investigated by the United States Marshals Service, Federal Bureau of Investigation, Fairfield Police Department and Meriden Police Department. Acting U.S. Attorney Daly also acknowledged the assistance provided by the U.S. Marshals Service and FBI in New York and Pennsylvania; the York, Allentown and Bethlehem Police Departments in Pennsylvania, and the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
This case is being prosecuted by Assistant United States Attorneys Tracy Lee Dayton and Douglas P. Morabito.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Five Convicted in Home Invasion ConspiracyRead the Press Release
PHILADELPHIA – A federal jury returned guilty verdicts late yesterday against five defendants charged in a conspiracy to commit an armed home invasion robbery against another drug dealer in Philadelphia. Robert Lamar Whitfield, 33, Marlon Graham, 22, Kenneth Parnell, 27, Kareem Long, 23, and Frank Thompson, 35, all of Philadelphia, were found guilty of conspiracy to commit Hobbs Act robbery, attempted Hobbs Act robbery, conspiracy to possess with the intent to distribute five kilograms or more of cocaine, attempted possession with intent to distribute five kilograms or more of cocaine, and carrying a firearm during and in relation to a crime of violence and a drug trafficking crime. The case was presided over by U.S. District Court Judge Juan R. Sanchez who has not yet scheduled sentencing hearings for the defendants. Four of the five face a 15 year mandatory minimum sentence, up to life in prison; defendant Frank Thompson faces a mandatory minimum of 25 years in prison.
Beginning in June 2012, the defendants put in motion a plan to steal, by force, cocaine and drug proceeds from the home of an individual they believed to be another drug dealer and attempted to carry out their plan on July 18, 2012. The plan was thwarted when agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives Violent Crime Task Force moved in to arrest the armed defendants during preparations.
In addition to the prison term, each defendant also faces five years of supervised release, fines of up to $20 million, and a $500 special assessment.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorneys V. Paige Pratter and Jeanine Linehan.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Felon Convicted of Possessing Gun Used in Prior ShootingRead the Press Release
A man who had a firearm hidden under his seat during a traffic stop in Waterloo was convicted by a jury today after a two-day trial in federal court in Cedar Rapids.
Delvonn Battle, 31, from Des Moines, Iowa, was convicted of possessing a firearm as a felon. The verdict was returned this afternoon following about one hour of jury deliberations.
The evidence at trial showed that Battle was riding in the passenger seat of a vehicle pulled over by Waterloo police officers just before midnight on January 13, 2012. The vehicle was driven by Ryan Marshall. A third occupant was in the rear passenger seat. All three occupants were from Des Moines. Based on inconsistent statements by the three occupants and other suspicious behavior, officers searched the vehicle. A loaded Ruger 9 millimeter pistol was found directly under Battle’s seat.
State crime lab evidence showed that the pistol located under Battle’s seat was the exact same firearm used in a shooting at a gas station in Des Moines just one month earlier. Battle was identified by an eyewitness as the shooter in the gas station shooting.
The driver of the vehicle, Ryan Marshall, was convicted of transporting a firearm as a felon earlier this year following a state jury trial in Black Hawk County. Marshall was not charged in the federal case.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Battle remains in custody of the United States Marshal pending sentencing. Battle faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, $100 in special assessments, and up to three years of supervised release following any imprisonment.The case is being prosecuted by Assistant United States Attorney Justin Lightfoot and was investigated by the Waterloo Police Department Violent Crime Apprehension Team (VCAT), and the Des Moines Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-CR-2005.
Federal Inmate Charged with Possessing HeroinRead the Press Release
JOHNSTOWN, Pa. - An inmate at the Federal Correctional Institution at Loretto, Pa., has been indicted by a federal grand jury in Pittsburgh on a charge of possession of contraband in prison, United States Attorney David J. Hickton announced today.
The indictment named Carlos Alberto Prieto, 47, as the sole defendant.
According to the indictment presented to the court, on Mar. 19, 2013, Prieto was in possession of heroin.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Federal Correctional Institution, Special Investigative Staff, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Grand Jury in Fort Wayne Returns IndictmentsRead the Press Release
Fort Wayne, INCThe United States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returned the following Indictments on May 22, 2013: Rico Parrish, 27, of Fort Wayne, Indiana was charged in a single count Indictment with being a felon in possession of a firearm on or about May 17, 2013. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony W. Geller.
Christopher Seals, 22, of Fort Wayne, Indiana was charged in a three count Indictment with armed bank robbery, use of a firearm during and in relation to a crime of violence, and being a felon in possession of a firearm on or about February 14, 2013. These charges were filed as a result of an investigation by the Federal Bureau of Investigation, Northeast Indiana Federal Bank Robbery Task Force, Bureau of Alcohol, Tobacco, Firearm and Explosives and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony W. Geller.
Armando Herrera-Velasquez, 41, of Fort Wayne, Indiana is charged in 1 count of a 3 count Superseding Indictment with conspiracy to distribute and possess with the intent to distribute cocaine from on or about July 2011 to on or about February 2013. Manuel Herrera, 43, of Fort Wayne, Indiana is charged in 2 counts of a 3 count Superseding Indictment with conspiracy to distribute and possess with the intent to distribute cocaine from on or about July 2011 to on or about February 2013 and maintaining a residence for the purpose of distributing cocaine from on or about November 20, 2012, to on or about February 19, 2013. Elida Herrera, 51, of Fort Wayne, Indiana is charged in 2 counts of a 3 count Superseding Indictment with conspiracy to distribute and possess with the intent to distribute cocaine from on or about July 2011 to on or about February 2013 and maintaining a residence for the purpose of distributing cocaine from on or about November 20, 2012, to on or about February 19, 2013. Maria Patricia Herrera, 52, of Fort Wayne, Indiana is charged in 1 count of a 3 count Superseding Indictment with conspiracy to distribute and possess with the intent to distribute cocaine from on or about July 2011 to on or about February 2013. Efren Paniagua-Pizano, 24, of Fort Wayne, Indiana is charged in 1 count of a 3 count Superseding Indictment with conspiracy to distribute and possess with the intent to distribute cocaine from on or about July 2011 to on or about February 2013. Luis Tapia, 42, of Fort Wayne, Indiana is charged in 1 count of a 3 count Superseding Indictment with conspiracy to distribute and possess with the intent to distribute cocaine from on or about July 2011 to on or about February 2013, and maintaining a residence for the purpose of distributing cocaine from on or about July 28, 2012, to on or about February 19, 2013. Juan Perez, 22, of Fort Wayne, Indiana is charged in 1 count of a 3 count Superseding Indictment with conspiracy to distribute and possess with the intent to distribute cocaine from on or about July 2011 to on or about February 2013. This case was superseded to include defendant Perez in the conspiracy. These charges were filed as a result of this investigation conducted by the FBI Fort Wayne Safe Streets Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Fort Wayne Safe Streets Task Force is comprised of FBI agents and officers from the Indiana State Police, Allen County Police Department, and Fort Wayne Police Department. The New Haven Police Department, Steuben County Sheriff's Department, Elkhart County Interdiction and Covert Enforcement Unit, South Bend Police Department, and IMAGE Drug Task Force assisted with this investigation. This case has been assigned to and will be prosecuted by Assistant United Attorney Lesley Miller Lowery.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
##END##Ervin Salgado Osorio Found Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that on May 22, 2013, in Helena, after a federal district court trial before U.S. District Judge Sam E. Haddon, ERVIN SALGADO OSORIO, a 32-year-old resident of Toppenish, Washington, was found guilty of conspiracy to distribute methamphetamine and distribution of methamphetamine. Sentencing is set for September 11, 2013. He is currently detained.
Assistant U.S. Attorney Paulette L. Stewart prosecuted the case for the United States.
OSORIO faces possible penalties of a mandatory minimum of 5 years and could be sentenced to 40 years, a $2,000,000 fine, and 4 years supervised release on each charge.
The investigation was a cooperative effort between the Missouri River Drug Task Force, the Federal Bureau of Investigation, the Montana Division of Criminal Investigation, the Helena Police Department, the Lewis & Clark Sheriff's Office, and the Drug Enforcement Administration.
Emile SentencingRead the Press Release
BATON ROUGE, LA- United States Attorney Donald J. Cazayoux, Jr. announced today that NAEEMAH EMILE, age 47, of Baton Rouge, Louisiana was sentenced by United States District Court Chief Judge Brian A. Jackson to twenty-eight (28) months of imprisonment.
EMILE previously pled guilty to money laundering and possession with the intent to distribute and distribution of “crack” cocaine and hydrocodone. In connection with her guilty plea, EMILE admitted that on May 2, 2012, EMILE and Beverly A. Smith traveled together to a local bank, where EMILE provided one of the tellers with a large bag containing $28,000 and seventy-nine (79) grams of “crack” cocaine. EMILE, who had an account at this bank, requested the teller to convert the $28,000 into a cashier’s check. That day, instead of using cash to pay for a new car they intended to purchase, they planned to pay for it with a cashier’s check so that this transaction would not be reported to the Internal Revenue Service. When the teller found the “crack” cocaine in the large bag given to her by EMILE, the police were called and the two women were taken into custody. During the investigation, law enforcement agents learned that EMILE had allowed Smith to use her residence to store “crack” cocaine and cash Smith made selling “crack” to various customers.
On July 6, 2012, during the execution of a search warrant at EMILE’s residence, in Baton Rouge, Louisiana, law-enforcement agents found Smith trying to flush approximately 18 grams of “crack” cocaine down the toilet. EMILE was in the kitchen at the time.
On July 16, 2012, during an undercover transaction, law enforcement agents purchased a small quantity of hydrocodone from EMILE and Smith, at the latter’s residence, in Baton Rouge, Louisiana.
U.S. Attorney Donald J. Cazayoux, Jr. stated, “This case demonstrates our continued efforts to stymie the drug trade and preventing drug traffickers from using and hiding their drug profits.”
“Federal laws that regulate the reporting of financial transactions are in place to detect and stop illegal activities. IRS Criminal Investigation is committed to enforcing these laws and eliminating the laundering of illegal profits,” stated Special Agent in Charge, Gabriel Grchan, IRS Criminal Investigation.
Tony James, Acting Assistant Special Agent in Charge, Drug Enforcement Administration likewise, stated, “The DEA, in conjunction with other federal, state, and local law enforcement agencies will continue to pursue those violating federal drug trafficking and money laundering laws.”
The investigation of this matter was conducted by the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, and the Baton Rouge City Police Department. The case was prosecuted by Assistant United States Attorneys Robert Piedrahita and Lane Ewing.
Dupree Man Arraigned on Assault ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Dupree, South Dakota man has been indicted by a federal grand jury for Assault With a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Jeryn Big Eagle, age 37, was indicted by a federal grand jury on May 15, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 21, 2013 and pled not guilty to the indictment.
The maximum penalty on each count upon conviction is 10 years' imprisonment, a $250,000 fine or both, and a period of supervised release of 3 years. The charges are merely accusations and Big Eagle is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Law Enforcement Services. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Big Eagle was remanded to the custody of the U.S. Marshal. A trial date has not been set.
Detroit Man Charged with Use of Counterfeit Debit CardsRead the Press Release
A crimininal information was filed charging Tyrone Nix, 22, of Detroit, with illegal possessing and using counterfeit debit cards, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the United States Secret Service. The case is being handled by Assistant United States Attorney Thomas A. Karol.
An information 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.
Deported Alien Charged with Illegal Re-entry into the United StatesRead the Press Release
PITTSBURGH, Pa. - A citizen of Mexico has been indicted by a federal grand jury in Pittsburgh on charges of re-entry into the United States after deportation, United States Attorney David J. Hickton announced today.
The indictment named Pedro Vidal-Garcia, 41, formerly from Mexico, as the sole defendant.
According to the indictment, on May 3, 2013, Pedro Vidal-Garcia, an alien, who had been removed from the United States on Sept. 28, 2004, and on April 5, 2009, was found in Pittsburgh without having been given permission to re-enter the United States.
The law provides for a maximum total sentence of two years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Dallas Woman Indicted in Bankruptcy FraudRead the Press Release
DALLAS — Estela Martinez, 53, of Dallas, made her first appearance in federal court this afternoon for the felony offense of bankruptcy fraud, as charged in an indictment returned by a federal grand jury in Dallas earlier this week. She pleaded not guilty and U.S. Magistrate Judge David L. Horan released her on bond. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The indictment alleges that from January 2011 through November 2012, Martinez filed several fraudulent bankruptcy petitions concerning, or in relation to, bankruptcy proceedings. She also allegedly made several false, fraudulent and material statements regarding her social security number in four Chapter 13 voluntary bankruptcy petitions. The indictment further alleges that Martinez repeatedly sought to defraud her creditors, by her efforts to delay, and frustrated the ability of the mortgage holder to foreclose on her residence.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the offense of bankruptcy fraud carries a maximum statutory penalty of five years in federal prison and a $250,000 fine.
The investigation is being conducted by the Social Security Administration Office of the Inspector General. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
Convicted Bank Robber Indicted on Federal Escape ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a grand jury in Williamsport has returned a one-count indictment today charging a convicted bank robber with escaping from federal custody while serving his federal bank robbery sentence.
According to United States Attorney Peter J. Smith, Daniel Warren Gaudio, age 56, formerly of California, is charged with escape from the Capital Pavilion Residential Reentry Center in Harrisburg, Pennsylvania on March 9, 2013. At the time of the escape, Gaudio was serving a sentence of 110 months for robbing the Sovereign Bank Branch in Lewisburg, Pennsylvania on May 9, 2005, transporting a Ford pick-up truck stolen in Las Vegas, Nevada and used in the bank robbery, and robbing another bank in Kentucky.
On March 12, 2013, the United States Marshals obtained a criminal complaint and warrant for Gaudio’s arrest on the escape charge.
On April 19, 2013, Gaudio was apprehended in Venice, California in connection with new bank robbery charges. According to a federal criminal complaint filed in Los Angeles on April 22, 2013, Gaudio allegedly robbed a USBANK branch in Manhattan Beach, California.
The case was investigated by the United States Marshals Service. Prosecution of this matter has been assigned to Assistant United States Attorney George J. Rocktashel, in coordination with the U.S. Attorney’s Office in Los Angeles.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is five years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Cleveland Man Indicted for Bank RobberyRead the Press Release
A Cleveland man was indicted for robbing a bank in Middleburg Heights, Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges Marc S. Easton, 44, robbed a Key Bank located in Middleburg Heights, Ohio, and stole approximately $10,997.15 from the bank.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Lauren Bell, following investigation by agents of the Federal Bureau of Investigation.
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.
Charlotte Man Pleads Guilty to Securities FraudRead the Press Release
Defendant Operated $8.9 Million Ponzi Scheme Through Hedge Fund
CHARLOTTE, N.C. – Stephen E. Maiden, 40, of Charlotte, has pleaded guilty to securities fraud for carrying out an $8.9 million Ponzi scheme, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Maiden entered his guilty plea this morning before U.S. Magistrate Judge David C. Keesler.
Joining U.S. Attorney Tompkins in making today’s announcement is John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.
A criminal bill of information filed on February 21, 2013, charged Maiden with conducting a Ponzi scheme through his hedge fund Maiden Capital Opportunity Fund (Maiden Capital) which was based in Charlotte. According to the bill of information, Maiden formed his hedge fund in October 2006 and touted his past educational and professional experience, which included stints at Chase Securities, Inc. as an investment banker and Mangan & McColl Partners as an investment analyst, to attract investors from Charlotte and elsewhere.
Based on information in court documents and court proceedings, beginning in at least February 2009, Maiden routinely transmitted bogus account statements to victims and to Maiden Capital’s fund administrator which falsely reported favorable returns both monthly and from the fund’s inception. For example, in June 2011, Maiden transmitted a bogus account statement which reported an estimated monthly net return of 1.3% and a 56 month inception-to-date net return of 81.3%. The account statement noted that in the same 30 month time period, the Russell 2000 and S&P 500 had gains of 24.5% and 11.3% respectively. In truth and fact, according to the charging document, Maiden completely fabricated these returns and by February 2009 had lost the majority of the fund’s assets in failed investments. To keep the scheme going, Maiden used money from new investors to satisfy withdrawal requests made by other fund investors, falsely characterizing the transactions as payments from Maiden Capital’s successful operations. As a result of his conduct, Maiden caused a total loss to victims of at least $8.9 million.
Maiden pleaded guilty to one count of securities fraud and was released on bond. He faces a maximum of 20 years in prison and a $250,000 fine, or both. Maiden has agreed to pay restitution the amount of which will be determined by the Court at sentencing. A sentencing date for the defendant has not been set yet.
The investigation was handled by the FBI. The prosecutions were handled by Assistant United States Attorney Mark T. Odulio, of the U.S. Attorney’s Office in Charlotte.
This matter relates to the work of Charlotte’s Securities Fraud Task Force, a group made up of the FBI, the securities division of the N.C. Secretary of State’s office, the N.C. Attorney General’s Office, the IRS criminal division, the U.S. Postal Inspection Service, the Mecklenburg County District Attorney’s Office, the Securities and Exchange Commission, and the U.S. Attorney’s Office. The multi-agency Task Force promotes collaboration between the agencies in the fight against corporate fraud, insider trading, accounting fraud, market manipulation schemes, and other finance-related crimes.
Career Offender from Cincinnati Sentenced to 262 Months for Possession of A Firearm in Furtherance of Drug TraffickingRead the Press Release
COVINGTON, KY - A Cincinnati man, who has several prior criminal convictions, was sentenced to 262 months in federal prison for possessing a firearm in furtherance of his drug trafficking activity in northern Kentucky.
On Wednesday, U.S. District Judge Amul Thapar sentenced 35 year-old Mitchell Blankumsee and also ordered that he be placed on supervised release for five years after he completes his prison term. Blankumsee received an enhanced sentence because he qualifies as a career offender, which means he had two or more drug trafficking or violent crime convictions at the time of his most recent offense.
In this case, Blankumsee admitted to distributing and selling heroin in Newport, KY., on July 24, 2012. He also possessed crack cocaine and a loaded firearm at the time of his arrest on August 29, 2012. Blankumsee acknowledged that he intended to sell the crack cocaine and that he possessed the firearm to assist him in trafficking drugs.
Blankumsee was previously convicted of selling crack cocaine, in Kenton County, in 1998; of possession of cocaine, in Hamilton County, Ohio, in 1999; and of trafficking in crack cocaine, in Campbell County, in 2005. He was released from prison for his 2005 offense shortly before committing this most recent offense.
Blankumsee entered his guilty plea on February 1, 2013. Under federal law, Blankumsee must serve at least 85 percent of his prison sentence.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Stuart L. Lowrey, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms & Explosives (Louisville Field Division), jointly announced the sentence.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, & Explosives, the Newport Police Department, and the Highland Heights Police Department. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorney Tony Bracke.
Camden Man Sentenced to Seven Years in Prison for Unlawful Possession of A Stolen Semiautomatic HandgunRead the Press Release
CAMDEN, N.J. – A Camden man with prior felony convictions was sentenced today to 84 months in prison for unlawfully possessing a semiautomatic handgun, U.S. Attorney Paul J. Fishman announced.
Bryon Goodman, 28, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an Indictment charging him with being a felon in possession of a firearm. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in the case and statements made in court:
On Feb. 7, 2012, Goodman knowingly possessed a loaded Ruger P89 9mm semiautomatic handgun at a Crown Fried Chicken restaurant in Camden. Camden police observed Goodman rolling a marijuana cigarette. Goodman was searched and found with the handgun, as well as various illegal drugs, including crack, heroin, and marijuana.
In addition to the prison term, Judge Kugler sentenced Goodman to three years of supervised release.
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon in Newark, with the investigation leading to today’s sentencing. He also thanked the N.J. State Police, the Camden County Prosecutor’s Office, and the Camden Police Department for their roles in the investigation.
The government is represented by Assistant U.S. Attorney Alyson M. Oswald of the U.S. Attorney’s Office Criminal Division in Camden.
13-211
Defense counsel: Christopher H. O’Malley Esq., Assistant Federal Public Defender, CamdenCamden Man Admits Conspiracy to Steal Checks from MailRead the Press Release
CAMDEN, N.J. – A Camden man today admitted his role in a scheme in which he and others stole business checks from the U.S. Mail in New Jersey and Connecticut, altered them, and cashed them using a series of conspirators, U.S. Attorney Paul J. Fishman announced.
Michael A. Ingalls, Jr., 35, pleaded guilty before Chief U.S. District Judge Jerome B. Simandle in Camden federal court to an Information charging him with one count of conspiracy to commit bank fraud and one count of possession of stolen mail.
According to documents filed in this case and statements made in court:
Ingalls and others stole checks from curbside U.S. mailboxes in business industrial parks in Burlington, Camden, and Gloucester counties in New Jersey. Ingalls and his co-conspirators (including Ibn Muhammad, 35, of Camden) would then recruit a conspirator to cash the stolen checks. Once they identified a person to cash the check, Ingalls and Muhammad would then alter the stolen checks so that the name of the “payee” of the check would match the name of the recruited check casher. Ingalls, Muhammad and the check casher would then travel to a bank where the check casher would cash the check.
Ingalls, Muhammad and their conspirators cashed or attempted to cash more than 100 stolen and altered business checks worth more than $600,000. The scheme resulted in a total loss of more than $300,000 to the victim banks.
Ingalls is also charged with possession of mail stolen from business industrial parks in Brookfield, Conn. The stolen mail was found after Ingalls was stopped for speeding by the N.J. State Police in Middlesex County while headed southbound on the N.J. Turnpike in the early morning hours of Feb. 27, 2011.
On the count of conspiracy to commit bank fraud, Ingalls faces a maximum potential penalty of 30 years in prison and a fine of $1 million, or twice the gross gain or loss resulting from the offense. On the count of possession of stolen mail, Ingalls faces a maximum potential penalty of five years in prison and a fine of $250,000. Sentencing is scheduled for Sept. 5, 2013.
Muhammad pleaded guilty Dec. 3, 2012, before Judge Simandle to bank fraud and theft of mail. He is currently in custody and is scheduled to be sentenced on June 17, 2013. One of Ingalls’ and Muhammad’s conspirators, Andrew Fortune, 62, of Camden, was arrested March 11, 2013, on a criminal complaint and charged with conspiracy to commit bank fraud for his role in the fraudulent scheme. His case is pending.
U.S. Attorney Fishman credited special agents from the U.S. Postal Inspection Service, under the direction of Karen V. Higgins, and troopers from the N.J., State Police, under the direction of Col. Rick Fuentes, for the investigation leading to today's guilty plea.
The Government is represented by Assistant U.S. Attorneys Matthew T. Smith and Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
13-214
Defense counsel: Richard Sparaco Esq., Cherry Hill, N.J.
Ingalls, Michael Information
Business Owners Indicted for $2.8 Million Scheme to Defraud the ArmyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., business owner and her employee are among three individuals and two businesses have been indicted by a federal grand jury for their roles in a $2.8 million fraud scheme to sell counterfeit and modified computer equipment to the U.S. Army.
Virgie Dillard, 70, of Lee’s Summit, Mo., her business, Missouri Office Systems and Supplies, Inc., and an employee, Roland Evans, 43, of Lee’s Summit, and Mark Morgan, 45, of Newport Coast, Calif., and his business, PRM Technology Equipment, LLC, were charged in a 12-count indictment returned under seal by a federal grand jury in Kansas City on Wednesday, May 22, 2013. That indictment was unsealed and made public today upon the arrests and initial court appearances of Evans and Morgan. Dillard is expected to self-surrender to federal authorities.
The federal indictment alleges that, after receiving a series of contracts in 2009 and 2010 to provide the Army with products from Cisco Systems, Inc., Missouri Office Systems and Supplies (MOSS) instead provided counterfeit products and Cisco products that were used and modified post-manufacture and were obtained outside Cisco’s authorized distribution channels.
The Army Recreation Machine Program (ARMP) contracted with MOSS to provide Cisco network hardware – such as transceivers and switches – that allows computers to communicate with other computers.
Dillard is the president and CEO of MOSS, located in Kansas City, which advertises itself as a company specializing in selling all types of office machines, including computers, software and other office furniture and supplies. Evans handled all of the contracts MOSS had for Cisco products, including all of the contracts MOSS had with ARMP for Cisco products.
MOSS fulfilled 13 contracts for ARMP between August 2009 and August 2010, totaling $2,828,126. The largest of these was a $2,156,548 contract for more than 2,500 Cisco parts to be shipped to 23 ARMP locations around the country. In each of these contracts, according to the indictment, MOSS sourced products from PRM Technology Equipment.
PRM, which does business through several entities created by Morgan, was headquartered in Charlotte, N. Carolina, at Morgan’s former residence. (In July 2012, Morgan moved to California.) PRM holds itself out to be a wholesale distributor of Cisco and other computer products, and claims to have substantially discounted pricing on new equipment due to direct relationships with manufacturers.
Morgan allegedly obtained products from several sources that provided counterfeit Cisco products and Cisco products that were used and modified post-manufacture outside of Cisco authorized distribution channels. Morgan allegedly purchased counterfeit computer products from sources in China and Hong Kong and imported them into the United States.
According to the indictment, Morgan paid Evans a total of $83,403 in a series of bonus payments for products ordered from PRM.
When asked by representatives from ARMP and Cisco as to the source of these products, the indictment says, Dillard and Evans falsely stated the products were new, genuine Cisco goods and services, provided from Cisco’s authorized distribution channels and protected by full Cisco warranties. The indictment alleges that Dillard and Evans repeatedly made false representations in meetings, phone conferences, and other communications to employees of the U.S. Army, ARMP, and Cisco that MOSS had supplied goods and services as required by contract.
Morgan allegedly helped Dillard and Evans conceal him as the true source of the products. Morgan, Dillard and Evans repeatedly made false representations through fraudulent documentation (including fraudulent purchase orders and invoices) that was provided to the U.S. Army, ARMP, and Cisco, according to the indictment.
The indictment quotes from a telephone call that Dillard allegedly made to Morgan on Aug. 24, 2011, in response to a Cisco employee again requesting documents to show where the products had been sourced. Dillard left Morgan a voicemail stating, “Hey Mark. This is Virgie. I need you to call me and help me figure out what to tell these people as to where I got this stuff from to keep from tell (sic) them I got it from you … I’m hoping you would call me back and help me figure out what to say.”
When an employee from ARMP notified Evans that 40 percent of the transceivers were failing, the indictment says, Evans e-mailed an employee of ARMP regarding the return of faulty items and misrepresented that Morgan was working for Cisco.
In addition to the conspiracy, the defendants are charged together in 10 counts of wire fraud. Evans is also charged with being a felon in possession of firearms. The indictment alleges that Evans, who has a prior felony conviction, was in possession of a Lorcin .380 pistol and a Winchester 12-gauge shotgun on Nov. 15, 2011.
The indictment also contains a forfeiture allegation, which would require all of the defendants to forfeit any property derived from the proceeds of the alleged offenses, including a $2,828,126 money judgment.
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 Matthew P. Wolesky. It was investigated by the FBI, the Department of Defense – Office of Inspector General and the Department of Homeland Security.
Buffalo Man Sentenced on Drug ChargesRead the Press Release
Buffalo, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Jesus Antonio Cotto, 43, of Buffalo, N.Y., who was convicted following a jury trial of possession with intent to distribute cocaine, was sentenced to 78 months in prison by Chief U.S. District Judge William M. Skretny.
Assistant United States Attorneys Thomas S. Duszkiewicz and Frank T. Pimentel, who handled the case, stated that the defendant attempted to sell cocaine to a confidential informant working with the Drug Enforcement Administration. As a result, law enforcement officers searched Cotto's Buffalo residence and recovered an additional amount of cocaine, a handgun, scale and the wrappings from 3 kilograms of cocaine.
The sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Region, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Frank J. Christiano, Resident Agent in Charge.
Brownsville Money Launderer and Former Fugitive Headed to PrisonRead the Press Release
CORPUS CHRISTI, Texas – Leonel de La Torre, of Brownsville, has been ordered to prison for nearly 14 years for his involvement in a money laundering conspiracy operating in South Texas as well as other states, United States Attorney Kenneth Magidson announced today.
De la Torre, 32, was one of six people originally charged in an indictment returned in July 2006. He had been a fugitive until his capture earlier this year. He subsequently pleaded guilty Feb. 27, 2013, to conspiracy to launder funds generated by narcotics trafficking.
Today, Senior U.S. District Judge Janis Graham Jack handed him a sentence of 165 months in federal prison which will be followed by a three-year-term of supervised release.
De la Torre admitted he helped lead a group of individuals who transported cocaine from South Texas for distribution in Houston as well as in Ohio and Michigan. He further acknowledged he helped lead the “laundering” of those funds generated by the cocaine business. The funds were moved through the banking system using both domestic and international means. The group invested in real estate to help conceal the illegal source of the funds.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation and the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Jon Muschenheim as part of the Organized Crime and Drug Enforcement Task Force.
Bernhard SentencingRead the Press Release
BATON ROUGE, LA—The United States Attorney’s Office announced that today JAMES M. BERNHARD, III, age 37, of Baton Rouge, Louisiana, was sentenced by United States District Court Chief Judge Brian A. Jackson to twenty-seven (27) months of imprisonment. BERNHARD was also ordered to pay a fine of $10,000. BERNARD will also be required to serve a two-year term of supervised release following his release from prison.
BERNHARD had previously pled guilty to wire fraud involving a scheme to defraud his employer, a Baton Rouge law firm, from December of 2010 to December of 2011. In connection with his guilty plea, BERNHARD admitted that, while employed as an attorney at the firm, he used his authority over the firm’s trust account to fraudulently transfer money to third parties under his control and to others to whom the defendant owed money. For instance, on or about January 7, 2011, BERNHARD caused $93,750 to be wired from the law firm’s trust account at Fidelity Bank to an account that the defendant controlled at Iberia Bank. In total, the defendant obtained approximately $453,123 from his fraudulent scheme.
This investigation was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Alan A. Stevens.
Baltimore Crack Dealer Sentenced to 20 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Kenneth Robinson, age 37, of Baltimore, Maryland, today to 20 years in prison followed by 10 years of supervised release for conspiracy to distribute and possession with intent to distribute crack cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to testimony at Robinson’s two day trial, on July 1, 2011, Baltimore police officers executed search warrants at Robinson’s home on Cedarhurst Road in Baltimore and his car. Robinson told the officers that they would find drugs and cash in ceiling tiles in the basement and in his car. The officers seized a total of approximately 589 grams of crack cocaine and $36,046. The evidence showed that Robinson sold drugs in the York Road corridor.
United States Attorney Rod J. Rosenstein commended the DEA and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Brooke Carey, who prosecuted the case.
Ayden Resident Sentenced to 160 Months for Distribution of Child PornographyRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today GEORGE MADDISON VENTERS, 52, was sentenced by Federal District Court Judge Terence W. Boyle to 160 months’ imprisonment and lifetime supervised release for distributing child pornography.
During the course of an investigation of online trafficking in child pornography, law enforcement identified VENTERS as an individual engaged in the distribution and receipt of child pornography. A search warrant was executed at his Ayden home in October of 2011 by the Pitt County Sheriff’s Office and the North Carolina State Bureau of Investigation, and revealed a massive collection of child pornography, constituting more than 200,000 videos and images of children being sexually abused. The investigation revealed that VENTERS had been collecting the material for over a decade.
“This defendant is one of the largest collectors of child sex abuse images in the history of our district,” said Walker. “To collect a virtual library of such material – every item of which depicts a real child suffering unspeakable abuse – shows a callousness that shocks the conscience. Our office will continue to make aggressive combating of this crime one of our highest priorties.”
Walker also praised the manner in which the investigation and prosecution were conducted. “This is great example of prosecutors and investigators at every level of law enforcement working together towards a great result. Unfortunately, child exploitation has become a problem too big for any one agency to address effectively. When local, state and federal law enforcement share ideas, resources, and practical assistance, however, we are extremely effective. We are fortunate to have such great partners in this important work.”
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Investigation of this case was conducted by the Pitt County Sheriff’s Department, the North Carolina State Bureau of Investigation and the North Carolina Internet Crimes Against Children Task Force, and prosecution was coordinated with the Pitt County District Attorney’s Office and District Attorney Kimberly Robb. Assistant United States Attorney Jay Exum prosecuted the case for the United States.
Arsonist Sentenced to Statutory MaximumRead the Press Release
SAN JOSE - Donald Ray Williams was sentenced today to 20 years in prison – the maximum allowable sentence – for his 2007 arson of a building containing a Walgreens and a Subway sandwich shop in downtown Palo Alto, United States Attorney Melinda Haag announced.
On January 29, 2009, Williams was convicted on arson charges by a jury after a three week trial. Evidence at trial showed that Williams climbed up a pipe on the exterior of the building to the roof of the second floor and broke into an abandoned office. Williams then lit newspapers next to a wooden bookcase. The flames climbed up the bookcase to some wooden beams in the ceiling. A nearby security camera recorded a grainy image of someone who resembled Williams removing his shirt and then climbing the pipe. Williams was positively identified by DNA evidence found on the shirt in a dumpster at the bottom of the pipe, and by witness testimony that he had been seen climbing up the pipe in the past.
Evidence also showed that the fire collapsed the second floor roof of the building onto the location where firefighters had been working roughly five minutes before. Walgreen’s employees evacuated and avoided injury because the girlfriend of one the employees saw the fire on the roof and called her boyfriend. Likewise, customers and employees of Subway evacuated and avoided injury because a restaurant hostess from across the street noticed the fire and called 911 and followed the operator's instructions to alert the people inside Subway.
Bureau of Alcohol, Tobacco, Firearms and Explosives, San Francisco Field Division, Special Agent in Charge Joseph M. Riehl said "Arson is an act of violence and endangers our communities. I am grateful no one was hurt during the suppression of the fire and I am pleased with the successful investigation and prosecution."
Williams, 51, of East Palo Alto, was indicted by a federal grand jury on January 30, 2008. He was charged with arson. Trial and sentencing were delayed repeatedly as the result of court ordered hearings about the defendant’s competence to stand trial, and periods of resulting mental health treatment.
The Honorable Jeremy Fogel, U.S. District Court Judge, handed down the sentence. In addition to the prison sentence, Judge Fogel ordered Williams to pay $28.6 million in restitution and to serve a three year period of supervised release upon release from prison. Williams has remained in custody since his arrest in January, 2008.
Daniel Kaleba and Gary G. Fry are the Assistant U.S. Attorneys who prosecuted the case with the assistance of Legal Technician Tracey Andersen. The prosecution was the result of a six month investigation by the federal Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Palo Alto Police Department and the Palo Alto Fire Department.
Arlen B. Cenac, Jr., Charged with Making False Statements to the Federal Elections CommissionRead the Press Release
ARLEN B. CENAC, JR., age 57, a resident of Houma, Louisiana, was charged with Making False Statements to the Federal Elections Commission today in a one-count Bill of Information, announced U. S. Attorney Dana J. Boente.
According to court documents, between February 16, 2008 and May 24, 2008, CENAC, who is the president and owner of Cenac Towing, submitted cashier’s checks that he purchased in the names of individuals other than himself to the campaigns of two United States Senate candidates. The money CENAC used to purchase these cashier’s checks came from personal and corporate accounts. In submitting these contributions to the campaigns CENAC, neither obtained nor sought the knowledge, permission or authority of the individuals he listed as remitters on the cashier’s checks. CENAC’s provision of the cashier’s checks caused a knowing and willful “submission of a materially false, fictitious, and fraudulent statement and representation, that is the submission by unwitting authorized campaign committees of candidates for the United States Senate to the Federal Election Commission of a report that was materially false in reporting the source and amount of contributions to the campaigns.”
If convicted, ARLEN B. CENAC, JR. faces a maximum term of imprisonment of five years, a fine of $250,000 and three years of supervised release following any term of imprisonment.
U. S. Attorney Boente reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation, the Department of Justice—Public Integrity, and the United States Attorney’s Office.
The case is being prosecuted by Department of Justice Trial Attorney Tracee Plowell and Assistant U. S. Attorney Dan Friel.
(Download Bill of Information )
Anchorage Man sentenced to 66 months prison for drug conspiracy convictionRead the Press Release
Anchorage, Alaska -Acting U.S. Attorney Kevin Feldis announced today that a man from Anchorage was sentenced in federal court for his role in an Anchorage and Fairbanks drug conspiracy.
Jeraelyn Hill a/k/a, “Dreadhead,” a/k/a, “Coo Rae,” a/k/a, “Coo,” a/k/a, “Rae”, 25, from Anchorage, Alaska, was sentenced today by Chief U.S. District Court Judge Ralph R. Beistline. Hill received a sentence of 66 months in prison and three years of supervised release. Hill had previously pled guilty to an indictment charging him and his co-conspirators with one count of drug conspiracy.
According to Assistant U.S. Attorney Kelly Cavanaugh, who prosecuted the case, Hill was a member of a drug trafficking organization in Anchorage and Fairbanks that between 2009 and February 2012, sold powder cocaine, marijuana, and oxycodone pills in Anchorage and Fairbanks. Hill sold cocaine in the Anchorage community. When Hill’s house was searched in March 2011, law enforcement also found $37,000 in cash wrapped in $1,000 bundles in his bedroom, $2,000 in loose money in a bedroom dresser, and 7 grams of cocaine in the kitchen. Further investigation revealed that Hill had been flushing cocaine down the toilet just prior to law enforcement making entry into his house.
Hill and other members of the conspiracy attempted to conceal their drug trafficking by claiming they were involved in a legitimate business and were “artists,” employees, or promoters of an Anchorage recording label and rap and hip hop performance group known as “Out Da Cutt” or “ODC” Entertainment and “UNDB” (Up North ‘D’ or Dope Boys). Members of this conspiracy would record rap and hip hop songs, post videos on Youtube.com, and perform local shows in Anchorage and Fairbanks. Much of their music glorified the lifestyle of selling illegal drugs and committing other crimes. The lavish and extravagant lifestyle portrayed in their music and videos was supported by their sales of illegal drugs.
Prior to imposing sentence, Judge Beistline stated that selling drugs poisons the community, he characterized Hill as a “professional drug dealer” and referenced Hill as a member of a “drug dealing group of singers.”
Hill was indicted along with 13 other members of the conspiracy which included Christopher Anderson who was previously sentenced to 14 months prison on November 2, 2012, and DeMarr Moultrie who was sentenced to 40 months prison on May 1, 2013. Donnell Johnson, Joshua Mustovich, Mihla Hall, Antonio Fleming, Dalon Johnson, Tevoris Carter, Rock Phelps, Jerry Wormley, Emma Shine, and Brent Gunnels have all pled guilty for their roles in connection with this conspiracy and await sentencing. Terrance Fleming has a pending trial scheduled in August 2013.
“The distribution and use of cocaine and other drugs continues to be a problem that we must recognize and address throughout our communities. As a result of the coordinated efforts of law enforcement throughout the state, this drug conspiracy has been put to an end, and the sentence imposed by the court reflects the seriousness of the matter,” stated Mr. Feldis.
Mr. Feldis commended the Federal Bureau of Investigation, the Drug Enforcement Administration, the United States Postal Service, the Internal Revenue Service Criminal Investigation Division, and the Anchorage Police Department for the investigation leading to the successful prosecution of Hill.
Anchorage Man indicted by Federal Grand Jury for illegal possession of firearmsRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Kevin Feldis announced today that an Anchorage man has been indicted for being a felon in possession of a firearm.
James Laneal Lee, III, 36, of Wasilla, Alaska, is the sole defendant named in the one-count indictment for illegal possession of firearms on or about August 10, 2011. The indictment alleges that Lee possessed two separate handguns, a .44 caliber revolver and a .45 caliber pistol. As a convicted felon, Lee is prohibited from possessing firearms.
Assistant U.S. Attorney Stephanie Courter, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of up to 10 years in prison, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of the defendant.
“Convicted felons are prohibited from possessing firearms under federal law. Enforcement of that law keeps firearms out of the hands of criminals and keeps our community safer,” stated Mr. Feldis.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.Alleged Rizzuto Organized Crime Family Associate Pleads Guilty to Narcotics Trafficking Crimes Carrying Sentence of 10 Years to LifeRead the Press Release
Alessandro Taloni, an alleged associate of the Montreal-based Rizzuto organized crime family of La Cosa Nostra, pled guilty earlier today before U.S. District Judge Raymond J. Dearie at the federal courthouse in Brooklyn to cocaine trafficking charges contained in a superseding indictment returned on April 3, 2013. When sentenced, Taloni will face a statutory mandatory minimum ten-year sentence and a maximum of life imprisonment, and a maximum fine of $10 million. As part of his sentence, Taloni will also forfeit $2,663,191 that federal agents seized from multiple locations in California that Taloni used to store narcotics and drug proceeds.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Brian R. Crowell, Special Agent-in-Charge of the Drug Enforcement Administration, New York (DEA).
Taloni was charged with narcotics and money laundering offenses as a part of an indictment in which ten members of a Montreal-based drug distribution organization affiliated with the Rizutto and Bonanno crime families, the Hells Angels, and the Sinaloa Cartel have been charged with trafficking over $1 billion worth of marijuana, cocaine, and ecstasy into the United States between 1998 and 2012. The organization allegedly transported tens of thousands of pounds of marijuana from outdoor growers in British Colombia to Montreal, Canada, and controlled numerous warehouses in and around Montreal for the manufacture of ecstasy and hydroponic marijuana. The drugs were smuggled into the United States using transportation networks run by the Hells Angels and Native American co-conspirators from the Akwesasne Mohawk Reservation along the U.S./Canadian border. Once the drugs were sold in the United States, much of it by distributors tied to the Bonanno crime family in New York, the organization used millions of dollars in drug proceeds to purchase more cocaine from the powerful Sinaloa Cartel in Mexico for exportation to and distribution in Canada. Taloni was personally sent from Montreal to Los Angeles, California, to receive those drug proceeds and to purchase cocaine from the Mexican sources.
During the course of the government’s investigation, federal agents seized approximately $1 million in drug proceeds and 49 kilograms of cocaine from searches of Taloni’s Mercedes Benz sedan, Beverly Hills residence and a stash house operated by Taloni in Beverly Hills. Search warrants executed at other stash houses operated by the organization in the Los Angeles area resulted in the seizure of an additional 34 kilograms of cocaine and approximately $1,600,000. In total agents seized more than $10,000,000 in narcotics proceeds from the organization.
“Taloni was a major narcotics distributor who used his connections to powerful international organized crime groups to obtain and distribute tens of millions of dollars worth of deadly narcotics. His conviction highlights this Office’s commitment to the global fight against transnational organized crime,” stated United States Attorney Lynch. Ms. Lynch thanked the Laval Police Service, Laval, Quebec; Santa Ana, Beverly Hills, and Anaheim, California Police Departments; and Nassau County Police Department for their invaluable assistance during this multi-year international investigation.
“No borders will obstruct the DEA, Nassau County Police Department, and Laval Police Service from bringing international drug traffickers to justice. This international organized crime syndicate operated on both sides of the northern border and across our southern border,” said DEA Special Agent in Charge Crowel. “This plea was a direct result of the outstanding collaboration between the US Attorney’s Office Eastern District of New York, federal, state, and local law enforcement.”
The government’s case is being prosecuted by Assistant United States Attorneys Steven L. Tiscione, Gina M. Parlovecchio, Amir H. Toossi, and Tanisha Payne.
The Defendant:
ALESSANDRO TALONI
Age: 39Alabama Woman Pleads Guilty for Involvement in a Large Scale Stolen Identity Refund FraudRead the Press Release
Tracey Montgomery, of Montgomery County, Ala., pleaded guilty today in the U.S. District Court for the Middle District of Alabama to her role in a large scale stolen identity refund fraud, the Justice Department and the Internal Revenue Service (IRS) announced today.
On April 17, 2013, a federal grand jury in Montgomery, Ala., indicted Montgomery on conspiracy and theft of government money charges. According to court documents, Montgomery opened two bank accounts which were used to receive deposits of fraudulent tax refunds. Between August 2009 and February 2011, at least six false federal income tax refunds totaling approximately $49,221 were directed to Montgomery’s bank accounts. Montgomery was able to withdraw the false tax refund money before the IRS caught her. The overall scheme Montgomery participated in is alleged to have involved over $500,000 in false refunds. As a result of her plea, Montgomery faces a maximum potential sentence of 10 years in prison.This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Charles M. Edgar Jr., Michael Boteler, and Greg Bailey of the Justice Department's Tax Division are prosecuting the case with the assistance from the U.S. Attorney’s Office for the Middle District of Alabama and, in particular, Assistant U.S. Attorney Todd Brown.
Alabama Man Pleads Guilty to His Role in Cashing <br /> Fraudulently Obtained Tax Refund ChecksRead the Press Release
Rodriquez Thomas, of Montgomery County, Ala., pleaded guilty today in the U.S. District Court for the Middle District of Alabama to conspiring to cash fraudulently obtained federal tax refund checks, the Justice Department and the Internal Revenue Service (IRS) announced.
According to court documents, Thomas, along with his co-conspirators, Jesse Johnson and Quanesha Johnson, obtained U.S. Treasury tax refund checks that were issued as a result of the filing of fraudulent tax returns. Thomas and the Johnsons and others cashed approximately 77 fraudulently obtained U.S. Treasury tax refund checks that totaled approximately $137,016 by bringing them to a bank teller, Debora Gray, who worked for a bank in Wetumpka, Ala., and who participated in the scheme.
Jesse and Quanesha Johnson and Debora Gray have all previously pleaded guilty to their involvement and are awaiting sentencing. Thomas faces a maximum sentence of five years in prison for the conspiracy. He is also subject to fines, mandatory restitution and forfeiture.
The case was investigated by Special Agents of IRS - Criminal Investigation. Trial Attorneys Charles Edgar Jr. and Michael Boteler of the Justice Department’s Tax Division and Assistant U.S. Attorney Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.