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20 May 2013
Laurel Man Sentenced to 20 Years in Prison for Producing Child PornographyRead the Press Release
Secretly Recorded a 13 Year Old Girl in a Bathroom
Greenbelt, Maryland – Chief U.S. District Judge Deborah K. Chasanow sentenced Frank Alan Klukosky, age 43, of Laurel, Maryland, today to 20 years in prison, followed by lifetime supervised release, for producing child pornography. Chief Judge Chasanow also ordered that upon his release from prison Klukosky must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Richard McLaughlin of the Laurel Police Department; Howard County Police Chief William McMahon; and Stephen Niemczak Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Computer Forensics and Investigative Research Branch.
According to Klukosky’s plea agreement, in June 2012, a federal probation officer discovered images and videos of child pornography on the cell phone of a registered sex offender on federal probation. Further investigation revealed that on June 24, 2012 Klukosky drove to the registered sex offender’s home in Laurel with an SD card that contained at least 120 images and six videos of child pornography. Klukosky then helped the registered sex offender load those images and videos onto his computer and cell phone.
On October 23, 2012 the FBI executed a search warrant at Klukosky’s home and seized video cameras, key fob cameras, computers, an external hard drive and other computer accessories. The external hard drive contained approximately 2,000 images and 16 videos of child pornography, including 11 videos depicting a 13 year old girl in a bathroom. The videos were taken with hidden key fob cameras. The videos were recorded on at least 10 occasions and depict the victim in stages of undress. In at least one of the videos, Klukosky is recorded while setting up or taking down the camera.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from 10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, the Laurel and Howard County Police Departments and HHS-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi O’Malley, who prosecuted the case.
Justice Department Reaches Settlement with Cinemark<br /> Holdings Inc. and Rave Holdings LLC Movie TheatersRead the Press Release
The Department of Justice announced today that it has reached a settlement with Cinemark Holdings Inc. and Rave Holdings LLC (Rave Cinemas) that requires Cinemark to divest movie theaters in Kentucky, New Jersey and Texas, in order to proceed with its $220 million acquisition of Rave Cinemas movie theaters. In addition, Cinemark’s chairman is required to divest Movie Tavern Inc., which operates theaters in Ft. Worth and Denton, Texas, that compete with Rave Cinemas. The department said that the original deal is likely to lead to higher ticket prices for moviegoers and that the divestitures of theaters in Louisville, Ky., southern New Jersey, Fort Worth, and Denton or Hickory Creek, Texas, will preserve competition in those areas, benefitting consumers.
The department’s Antitrust Division and the state of Texas filed a civil lawsuit today in U.S. District Court in Washington, D.C., to block the proposed acquisition. At the same time, the department and the state of Texas filed a proposed settlement that requires the divestitures. If approved by the court, the settlement would resolve the lawsuit and the department’s and the state of Texas’ concerns about the competitive harm to consumers that would result from the acquisition.
“Cinemark’s proposed acquisition of Rave Cinemas would likely reduce competition among theaters showing first-run, commercial movies in the affected areas of Kentucky, New Jersey and Texas, causing moviegoers to pay higher ticket prices,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The divestitures required by the department and the state of Texas will ensure that competition among movie theaters in the affected areas is preserved.”
According to the complaint, the movie theaters compete on multiple dimensions to attract moviegoers, such as the quality of the viewing experience, sound systems, largest screens, best picture clarity, best seating, and quality of food and drinks. More than 1 billion movie tickets were sold in the United States in 2012, with total box office revenue reaching about $9.7 billion.
The department said that Cinemark and Rave Cinemas are each other’s most significant competitor in the area in and around Voorhees-Somerdale, N.J., and in the eastern portion of Louisville, Ky., and that Rave Cinemas and Movie Tavern are each other’s most significant competitor in the western portion of Fort Worth, Texas. In the area in and around Denton, Texas, all three companies presently operate theatres. In markets in which Movie Tavern and Rave Cinemas currently compete, the department said that Cinemark’s chairman, Lee Roy Mitchell, would have an ability and financial incentive to dampen competition once Rave Cinemas was acquired by Cinemark.
The proposed acquisition would likely reduce price competition among Cinemark, Rave Cinemas and Movie Tavern in the affected markets. The complaint states that if no longer motivated to compete, Cinemark, Rave Cinemas and Movie Tavern would also have less incentive to maintain, upgrade and renovate their theaters, to improve those theaters’ amenities and services and to license the most popular movies, reducing the quality of the viewing experience for the moviegoer.
The requirement to divest three movie theaters in the locations where Cinemark and Rave Cinemas are currently each other’s closest competitor and to require Mitchell to divest Movie Tavern and its 16 theaters will alleviate the competitive harm to moviegoers from this transaction.
Cinemark, a Plano, Texas-based company, owns and operates 298 theaters with a total of 3,916 screens in 39 states. Its U.S. box office revenues were approximately $1 billion in 2012.
Rave Cinemas, a Dallas-based company, owns and operates 35 movie theaters with a total of 518 screens in 12 states. Its U.S. box office revenues were approximately $169 million in 2012.
Movie Tavern, also a Dallas-based company, owns and operates 16 movie theaters with a total of 130 screens in seven states. Its U.S. box office revenues were approximately $31 million in 2012. Movie Tavern is owned by Alder Wood Partners L.P., a Dallas-based limited partnership controlled by Mitchell and his wife.
As required by the Tunney Act, the proposed settlement and the department’s competitive impact statement will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to John R. Read, Chief, Litigation III Section, Antitrust Division, U.S. Department of Justice, 450 5th Street, N.W., Suite 4000, Washington, D.C. 20530 (telephone: 202-307-0468). At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may enter the proposed consent decree upon finding that it serves the public interest.
Jicarilla Apache Man Pleads Guilty to Federal Drug Trafficking ChargesRead the Press Release
ALBUQUERQUE – Jordan Vigil, 27, a member of the Jicarilla Apache Nation who resides in Dulce, N.M., pleaded guilty this morning to a two-count indictment charging him with possession of marijuana with intent to distribute, and possession of psilocin (mushrooms) with intent to distribute. Vigil entered his guilty plea without the benefit of any plea agreement.
Vigil was arrested on Jan. 18, 2013, following the filing of the indictment on Jan. 10, 2013. The indictment alleges that Vigil was in possession of distribution amounts of marijuana and psilocin on March 10, 2012, in Rio Arriba County. This morning, Vigil entered a guilty plea to the indictment.
At sentencing, Vigil faces a maximum penalty of five years in prison on the marijuana charge and twenty years on the psilocin charge. His sentencing hearing has yet to be scheduled.
The case was investigated by the Farmington office of the FBI and the Jicarilla Apache Tribal Police Department, and is being prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
Idaho Contractor Indicted on Federal Charges of Conspiracy, Money Laundering, Obstruction of Justice, Wire, and Tax FraudRead the Press Release
Government Seeking Forfeiture of Over $9 Million from Treasure Valley Woman
BOISE – U.S. Attorney Wendy J. Olson and Assistant Attorney General for the Tax Division Kathryn Keneally announced today that a federal grand jury in Boise returned a 42-page Superseding Indictment this week that charges Elaine Martin, 66, of Meridian, Idaho, with making false statements, conspiracy, wire fraud, mail fraud, and obstruction of justice. It also seeks forfeiture of over $9 million as the proceeds of the alleged crimes. Darrell Swigert, 67, of Boise, Idaho, is charged with obstructing and conspiring to obstruct a federal criminal proceeding.
Martin was the president and majority stockholder of Marcon, Inc., a Treasure Valley construction company. Swigert was a minority shareholder. An earlier indictment that charged only Martin, filed on March 13, 2013, was unsealed by the court today. A court date has not been set.
The Superseding Indictment charges Martin with four counts of making and subscribing a false tax return, two counts of conspiracy, five counts of wire fraud, one count of making a false statement, five counts of mail fraud, four counts of interstate transportation of property taken by fraud, one count of conspiracy to commit money laundering, one count of conspiracy to obstruct justice, and one count of obstructing justice.
The Superseding Indictment alleges that as early as 2000, and continuing through January 2012, Martin took steps to lower her personal net worth, such as acquiring, holding and transferring assets into the names of nominees. According to the Superseding Indictment, this and other alleged conduct enabled Martin to successfully apply for and be admitted into the U.S. Small Business Administration (SBA) 8(a) Program. The Superseding Indictment alleges that Martin’s actions also allowed Marcon to fraudulently maintain its certification with the U.S. Department of Transportation’s Disadvantaged Business Enterprise (DBE) Program, in the states of Idaho and Utah. The SBA 8(a) Program and DBE Program are designed to help economically and socially disadvantaged business compete in the marketplace. Both programs require applicants to show that their personal net worth is below a certain statutory threshold. The Superseding Indictment alleges that Martin remained in control of her assets while appearing to meet the personal net worth requirements of both programs.
According to the Superseding Indictment, Martin also caused false and fraudulent tax returns to be filed for herself and Marcon, Inc., which did not report all of the income received by Martin or the company. These false returns were allegedly submitted in support of Marcon’s applications to the SBA 8(a) Program and DBE Programs for Idaho and Utah, along with allegedly false personal financial statements. According to the Superseding Indictment, Martin caused the financial books and records for Marcon to be false by purposefully omitting, deleting, altering or mis-categorizing entries. The Superseding Indictment further alleges that Martin concealed her role or relationship in other business entities that dealt with Marcon, Inc.
While a participant in the SBA 8(a) Program, the Superseding Indictment alleges that Martin sought to conceal withdrawals of capital that exceeded the SBA 8(a) Program limits by executing loans with her family members and with entities that she controlled.
The Superseding Indictment charges that Marcon received more than $2.5 million in government contracts based on the company’s fraudulently obtained SBA 8(a) status. The Superseding Indictment further alleges that Marcon received more than $6 million in government contracts based on the company’s fraudulently obtained DBE status in the states of Idaho and Utah.
Both Martin and Swigert are charged with conspiracy to obstruct justice by fabricating documents and making false statements that sought to conceal the true nature, source, and extent of property belonging to Martin. According to the Superseding Indictment, Martin and Swigert fabricated a loan document and document that purported to memorialize a gift in order to impede a civil audit by the IRS and criminal investigation by the IRS and U.S. Attorney’s Office. Swigert is also charged with a second count of obstruction of justice based on allegedly false statements that he made to conceal the nature, source, and extent of property belonging to Martin.
The government seeks forfeiture of $9,237,722.10, which represents the proceeds that Martin obtained as a result of the alleged offenses.
“Those who seek federal contracts and seek to benefit from federal funds have a solemn obligation to deal honestly and openly with the federal government,” said Olson. “This office will continue to work side-by-side with its federal program partners to ensure that fraud is thoroughly investigated and, where appropriate, vigorously prosecuted.”
“The 8(a) Business Development Program is designed to help small, disadvantaged businesses compete in the marketplace and offers significant benefits to eligible small businesses,” said Inspector General Peggy E. Gustafson of the Small Business Administration. “Preferences for federal contract awards must not be given to persons who lie in order to claim eligibility. I want to thank the U.S. Attorney's Office and our law enforcement partners for their commitment to seek justice on behalf of the American taxpayer.”
“Those who commit tax fraud and fraudulently benefit from government programs are cheating honest taxpayers. IRS-Criminal Investigations will work diligently with our law enforcement partners to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice,” said Stephen Boyd, IRS Criminal Investigation Special Agent-in-Charge for the State of Idaho.
“The Disadvantaged Business Enterprise (DBE) Program is a business assistance program of the U.S. Department of Transportation (DOT) which helps economically and socially disadvantaged small businesses compete in the marketplace. DBE fraud harms the integrity of the program and adversely impacts law-abiding, small business contractors trying to compete on a level playing field,” said William Swallow, regional Special Agent-in-Charge of the DOT’s Office of Inspector General. “Working with our Federal, State, and local law enforcement and prosecutorial colleagues, we will vigorously pursue those who violate the law, and expose and shut down fraud schemes that adversely affect public trust and DOT-assisted highway programs.”
Each charge of making and subscribing a false return, as charged in counts one through four, is punishable by up to three years in prison, a maximum fine of $250,000, and up to three years of supervised release. The charge of conspiracy, as charged in counts five, twelve, and23, is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release. Each count of wire fraud, as charged in counts six through ten, is punishable by up to 20 years in prison, a maximum fine of $250,000, and up to five years of supervised release. The charge of making a false statement, as charged in count 11, is punishable by up to two years in prison, a maximum fine of $250,000, and up to one year of supervised release. Each charge of mail fraud, as charged in counts 13 through 16, is punishable by up to 20 years in prison, a maximum fine of $250,000, and up to five years of supervised release. Each charge of interstate transportation of property taken by fraud, as charged in counts 18 through 21, is punishable by up to 10 years in prison, a maximum fine of $250,000, and up to three years of supervised release. The charge of conspiracy to commit money laundering, as charged in count 22 is punishable by up to 20 years in prison, a maximum fine of $250,000, and up to three years of supervised release. The charges of conspiracy to obstruct justice, count 23, and obstruction of justice, counts 24 and 25, are each punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release.
The case is being investigated by the Internal Revenue Service-Criminal Investigation, the Federal Bureau of Investigation, the Office of Inspector General for the U.S. Small Business Administration, and the Office of Inspector General for the U.S. Department of Transportation.
Today's announcement is part of an effort by President Obama's Financial Fraud Enforcement Task Force (FFETF), created in November 2009, to combat financial fraud crimes by waging aggressive, coordinated and proactive investigations and prosecutions. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, the task force is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Grand Island Man Sentenced to 14 Years Imprisonment for Conspiracy to Distribute Methamphetamine and CocaineRead the Press Release
United States Attorney Deborah R. Gilg announced that the Honorable John M. Gerrard, U.S. District Court Judge, sentenced Jaime Francisco Barraza to 14 years imprisonment, to be followed by 5 years of supervised release, and he was ordered to pay a $100 special assessment, following his conviction for conspiracy to distribute methamphetamine and cocaine.
Between 2004 and 2010, Barraza was responsible for the distribution of more than 1,100 grams of actual methamphetamine, more than 11,000 grams of a mixture of methamphetamine, and more than 800 grams of a mixture of cocaine. It was noted at the sentencing hearing that the 14 year sentence was warranted by the amount of drugs and the length of time of Barraza’s dealings. Barraza pled guilty on January 30, 2013.
The Central Nebraska Drug and Safe Streets Task Force was responsible for the investigation of this case.Gallup Man Sentenced to Twenty-Five Months in Federal Prison for Assault Arising from Domestic Violence IncidentRead the Press Release
ALBUQUERQUE –Derek Yabeny, 27, an enrolled member of the Navajo Nation who resides in Gallup, N.M., was sentenced this morning to 25 months in prison followed by three years of supervised release for his assault conviction. Yabeny also was ordered to participate in domestic violence counseling and counseling for substance abuse.
Yabeny was arrested on a criminal complaint in Oct. 2012, and has been in custody since that time. He subsequently was indicted and charged with assault resulting in serious bodily injury, and abandonment or abuse of a child. According to the criminal complaint, on Oct. 7, 2012, Yabeny assaulted his girlfriend, who is the mother of his two-year old toddler. At the time of the assault, the victim was carrying her infant daughter. The victim sustained two orbital fractures as a result of the assault.
On Feb. 19, 2013, Yabeny entered a guilty plea to Count one of the indictment. Yabeny admitted assaulting the victim, a Navajo woman, by striking her with his fists and causing her to suffer serious bodily injury. The assault occurred on the grounds of the Shiprock Fair, which are located on the Navajo Indian Reservation, on Oct. 7, 2012.
As required by the terms of the plea agreement, Count 2 of the indictment, the child abuse charge, was dismissed after Yabeny was sentenced.
The case was investigated by the Albuquerque office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and was prosecuted by Special Assistant U.S. Attorney David M. Adams.
This case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project which is sponsored by the Justice Department’s Office on Violence Against Women, and seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Four Charged in Methamphetamine Deal Near the HoustonianRead the Press Release
HOUSTON – Four men have been charged with conspiracy to possess and possession with the intent to distribute methamphetamine, United States Attorney Kenneth Magidson announced today along with Javier Peña, special agent in charge of the Drug Enforcement Administration (DEA). Roberto Carlos Garza, 23, and Alexander Chavez, 34, both of Rio Grande City, and Luis Angel Mendoza-Estrella, 26, and Loya-Plancarte, 22, both of Morelia, Michoacan, Mexico, were arrested Saturday after an incident near the Houstonian Hotel on North Post Oak Lane in Houston.
On May 17, 2013, a confidential source met with Garza and Chavez and allegedly negotiated the delivery of 22 pounds of methamphetamine. The criminal complaint, filed today, alleges the source was to deliver $15,000 per pound upon delivery of the methamphetamine at a parking lot near the Houstonian Hotel.
At approximately 12:58 p.m. the next day, according to the complaint, DEA agents observed a gray Honda CR-V arrive at the location driven by Chavez with Garza riding as a passenger. The Honda was allegedly followed by a gray Toyota Tundra driven by Mendoza-Estrella with Loya-Plancarte in the passenger seat. The Tundra parked, then allegedly backed out of the parking spot and drove around the lot slowly with Mendoza-Estrella and Loya-Plancarte allegedly observing other vehicles in the lot.
The criminal complaint alleges that after the source approached the Honda, met with Chavez and observed the methamphetamine, agents attempted to execute the arrest of the four men. Identifying themselves as law enforcement officers, agents ordered them out of the vehicles. Mendoza-Estrella and Loya-Plancarte each complied and agents took them into custody without incident.
However, Chavez allegedly attempted to flee, according to the allegations. He drove the Honda in reverse and struck another vehicle, then drove forward and accelerated rapidly towards two agents who were on foot, according to the complaint. One of the agents fired toward Chavez in an effort to stop him from hitting the agent with the vehicle.
Chavez was allegedly hit and the vehicle veered to the side and eventually came to a stop. Garza was taken into custody and Chavez was treated at the scene until an ambulance arrived and transported him to a hospital.
Agents subsequently found and seized three plastic containers containing a white crystalline substance believed to be methamphetamine from the rear area of the Honda, according to the complaint. The substance allegedly weighed approximately 15 pounds.
With the exception of Chavez, the three men made their initial appearance in federal court this afternoon and were temporarily detained pending further criminal proceedings. Mendoza-Estrella and Loya-Plancarte will have a detention hearing on Wed. May 22, at 10:00 a.m. before U.S. Magistrate Judge Nancy Johnson. Garza will appear in court tomorrow at 10:00 a.m. before Judge Johnson for a counsel determination hearing.
If convicted, each faces at least 10 years and up to life in prison as well as a possible $10 million fine.
The case is being investigation by the DEA with the assistance of the Harris County Sheriff’s Office. Assistant United States Attorney Rob Jones is prosecuting.
Former Dallas Securities Broker Sentenced in Oklahoma to 84 Months in Prison for Role in Stock Manipulation SchemeRead the Press Release
WASHINGTON - A former stock broker was sentenced to prison today for his role in an extensive pump-and-dump stock manipulation scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division , U.S. Attorney Danny C. Williams Sr. of the Northern District of Oklahoma, Special Agent in Charge James E. Finch of the FBI's Oklahoma City Division and Internal Revenue Service-Criminal Investigation (IRS-CI) Chief Richard Weber.
Joshua Wayne Lankford, 39, of Dallas, was sentenced by U.S. District Judge James H. Payne in the Northern District of Oklahoma to serve 84 months in prison. In addition to his prison term, Lankford was ordered to forfeit $250,000. Proceeds from forfeited assets will be used to partially restitute victims.
On Dec. 10, 2012, Lankford pleaded guilty to one count of money laundering.
"Mr. Lankford and his co-conspirators took advantage of innocent investors to the tune of millions of dollars, pumping and dumping penny stocks without regard to anything but their wallets," said Acting Assistant Attorney General Raman. "As this case shows, stockbrokers and other professionals will be punished if they break the law. Lankford now faces substantial time in prison for his manipulation scheme."
"The U.S. Attorney's Office and the Department of Justice are committed to identifying and prosecuting criminals who defraud investors and steal their savings," said U.S. Attorney Williams. "Pump and dump schemes like these have a devastating financial impact on the victims and undermine public confidence in our nation's financial system."
According to court documents and evidence presented at the 2010 trial, Lankford and his co-defendants manipulated the stocks of three companies: Deep Rock Oil & Gas Inc. and Global Beverage Solutions Inc., formerly known as Pacific Peak Investments, both of Tulsa, Okla., and National Storm Management Group Inc. of Glen Ellyn, Ill. The defendants devised and engaged in a scheme to defraud investors known as a "pump and dump," in which they manipulated publicly traded penny stocks. A penny stock is a common stock that trades for less than $5 per share in the over the counter market, rather than on national exchanges. Lankford and his co-defendants executed the scheme by obtaining a majority of the free-trading shares of stock of the company they intended to manipulate, using fraudulent and deceptive means to acquire the stock and/or remove the trading restrictions on the shares they obtained.
"Stock manipulation and securities fraud are high investigative priorities of the FBI," said FBI Special Agent in Charge Finch. "This case is the result of a lengthy investigation which involved outstanding cooperation between the FBI, IRS Criminal Investigations, and the SEC. The FBI will continue to work with our law enforcement partners to protect investors and bring those who commit these types of fraud to justice."
"Using fraud and deception to jeopardize the financial markets and launder funds are not victimless crimes," said IRS-CI Chief Weber. "Mr. Lankford and his co-defendants thought they latched onto a clever scheme to reap a vast wealth of illegal profits. Today, justice has been served. IRS-CI works in close alliance with our law enforcement partners, and together we will hold those who engage in similar conduct accountable."
According to court records, Lankford and other conspirators "parked" their shares with various nominees, such as friends, relatives or other entities that they owned and controlled. Subsequently, they engaged in coordinated trading in order to create the appearance of an emerging market for these stocks, after which they conducted massive promotional campaigns in which unsolicited fax and email "blasts" were sent to millions of recipients. According to evidence presented at the 2010 trial, these blasts touted the respective stocks without accurately disclosing who was paying for the promotions, omitted that the defendants intended to sell their shares, and induced unsuspecting legitimate investors to purchase stock in the companies. The defendants and their nominees obtained significant profits by selling large amounts of shares after they had artificially inflated the stock price. For each of the three manipulated stocks, the conspirators' sell-off caused declines of the stock price and left legitimate investors holding stock of significantly reduced value.
According to Lankford's guilty plea, he laundered $250,000 in proceeds derived from the stock manipulation scheme.
Evidence presented in the 2010 trial showed that the overall scheme resulted in illegal proceeds of more than $43 million from more than 17,000 investor victims.
Lankford was originally charged in a 24-count indictment unsealed on Feb. 10, 2009, against five defendants. Prior to trial, Lankford fled to Costa Rica, where he remained until he was extradited to the United States in May 2012. James Reskin, 54, of Louisville, Ky., was sentenced today to serve five years of probation for his role in the scheme. Co-defendants George David Gordon and Richard Clark, were convicted by a federal jury in May 2010 for their roles in the scheme. Gordon was sentenced to serve 188 months in prison, and Clark was sentenced to serve 151 months in prison. The fifth defendant, Dean Sheptycki, remains a fugitive.
The case is being prosecuted by Trial Attorneys Andrew Warren and Kevin Muhlendorf of the Criminal Division's Fraud Section and Assistant U.S. Attorney Catherine Depew for the Northern District of Oklahoma. The case is being investigated by IRS-CI and the FBI. The department wishes to thank the Securities and Exchange Commission, which referred the matter for prosecution. The department also wishes to thank the Criminal Division's Office of International Affairs, the U.S. Department of State and the U.S. Marshals Service for their work in securing Lankford's extradition.
This case is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Former Chief Investment Officer of Construction Supply Company Convicted on All Counts by Jury in Bank Fraud SchemeRead the Press Release
Earlier today, following three weeks of trial, a federal jury in Brooklyn, New York, returned a guilty verdict against Rodney Watts, the former Chief Investment Officer of GDC Acquisitions, LLC (“GDC”), on charges of bank fraud, false statements and conspiracy to commit bank fraud. Watts also served as the Chief Financial Officer of GDC at one time. These charges arose out of the defendant’s scheme to defraud Amalgamated Bank, GDC’s asset-based lender, of $21 million in fraudulent loans. When sentenced by United States District Judge Kiyo A. Matsumoto, the defendant faces a maximum sentence of 30 years’ imprisonment on the most serious charge. Watts’s co-defendant, Courtney Dupree, was convicted by a federal jury in December 2011, on the same charges. Dupree, who served as GDC’s Chief Executive Officer, is also awaiting sentencing.
The government has already won two appeals before the Second Circuit in the case. In one appeal, the government successfully defended its seizure of over $633,000 that Watts sought released to pay for his defense attorneys; that appeal was dismissed after a jury in the trial of Dupree determined that the funds were criminal proceeds. In the other appeal, the government successfully appealed a decision relating to evidence that Dupree committed a crime while out on bail.
The verdict was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York.
GDC, based in Long Island City, Queens, is a holding company that owns various subsidiaries, including JDC Lighting, a lighting distributor; Unalite Electric and Lighting, a lighting maintenance company; and Hudson Bay Environments Group, a furniture distributor. The evidence included the testimony of GDC’s former Chief Financial Officer and two GDC accountants, all three of whom had previously pleaded guilty to fraud charges arising from the scheme. At trial, the government proved defendant Rodney Watts and others gave Amalgamated Bank false financial information for GDC in which they had fraudulently inflated the company’s accounts receivable in order to obtain initially, and then maintain, credit lines totaling approximately $21 million. The evidence proved that the conspirators inflated the accounts receivable by a variety of means, including by recording in the corporate books fake sales that had never taken place. For example, the defendant represented to Amalgamated Bank in writing in November 2009 that GDC had $25.2 million in accounts receivable when, in fact, it had only approximately $9 million. In addition, the defendant and others defrauded Amalgamated Bank by causing GDC to acquire a company covertly, contrary to the terms of their loan agreement, and by concealing the acquisition from the bank. The defendant and others also sought to obtain an additional loan from C3 Capital, a mezzanine lender based in Kansas City, Missouri, based on GDC’s fraudulent books. According to the trial testimony, the scheme unraveled when one of the accountants turned himself into the FBI and cooperated in the government’s investigation in an undercover capacity for approximately two months.
“Using books and records that were no more than fairy tales, the defendant fleeced Amalgamated Bank of 21 million dollars. The jury saw through his creative writing and web of lies, and he will now be held to account for his crimes,” stated United States Attorney Lynch. “No matter their wealth, influence, or position, fraudsters can expect to be investigated and prosecuted to the full extent of the law.”
Ms. Lynch extended her grateful appreciation to the Federal Bureau of Investigation and the Postal Inspection Service, the agencies responsible for leading the government’s criminal investigation.
The government’s case is being prosecuted by Assistant United States Attorneys Michael L. Yaeger, Catherine M. Mirabile, David C. Woll and Brian Morris.
The case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency task force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit www.stopfraud.gov.
The Defendants:
COURTNEY DUPREE
Age: 41RODNEY WATTS
Age: 39Felon Admits Illegally Possessing PistolRead the Press Release
PITTSBURGH, Pa. - A Pittsburgh resident pleaded guilty in federal court to a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.
Jaamayl Crosby, 27, pleaded guilty to one count before Senior United States District Judge Alan N. Bloch.
In connection with the guilty plea, the court was advised that on or about Sept. 14, 2012, Crosby, being a convicted felon, illegally possessed a Walther, Model PK380, .380 ACP caliber pistol. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year to possess a firearm.
Judge Bloch scheduled sentencing for Aug. 22, 2013 at 12:30 p.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Charles A. Eberle is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Jaamayl Crosby.
Federal Jury Convicts Tyler James Schaeffer on Firearms ChargesRead the Press Release
Convictions linked to a series of robberies and drug trafficking
KNOXVILLE, Tenn. – On May 17, 2013, following a three-day trial in U.S. District Court, Knoxville, Tenn., a jury convicted Tyler James Schaeffer, 22, of Seymour, Tenn., of three counts of brandishing a firearm during and in relation to three robberies of businesses engaged in interstate commerce (Hobbs Act robbery) and possession of a firearm in furtherance of a methylone trafficking conspiracy.
Schaeffer’s sentencing is set for 10:00 a.m., October 9, 2013, in U.S. District Court in Knoxville, Tenn. He faces a sentence of at least 82 years and up to life on the firearms convictions, and up to an additional 160 years in prison on the robbery and drug trafficking convictions. There is no parole in the federal system.
These latest convictions stem from a series of armed robberies in Knox, Sevier, and Blount Counties, between July 26, 2010 and September 14, 2012. Schaeffer previously pleaded guilty to all of the robberies, a total of seven, as well as the methylone trafficking conspiracy. Those pleas were accepted by the Honorable Thomas A. Varlan, Chief U.S. District Judge, on April 30, 2013. Chief Judge Varlan also presided over Schaeffer’s trial.
Schaeffer brandished a knife in at least two of the robberies, and firearms in four of the robberies. Based on the proof available at the time of trial, the United States pursued firearms charges in connection with three of the seven robberies, as well as the methylone trafficking conspiracy. The jury convicted Schaeffer of each of those four firearms-related counts.
Jerel Bray-Sean Johnson, 20, of Knoxville, Tenn., and Rodney James Ruffin, 22, of Sevierville, Tenn., previously pleaded guilty to related robbery, drug trafficking and firearms charges, and did not go to trial with Schaeffer.
According to evidence presented at trial, Schaeffer brandished handguns when he robbed local stores, restaurants, and drug traffickers, including a revolver he obtained on the black market. Evidence detailed how Schaeffer obtained the black market revolver; how he used it in connection with two robberies and a methylone conspiracy; and ultimately, how the revolver was discarded in a south Knoxville storm drain days after an automobile collision involving Schaeffer on September 16, 2012. The Federal Bureau of Investigation (FBI) and the Knoxville Police Department (KPD) recovered the firearm on April 9, 2013, just over a month before trial was to commence. The evidence also included testimony about Schaeffer’s trafficking of methylone on the University of Tennessee (UT) campus following the UT/Florida football game on September 15, 2012, while armed with the revolver. Methylone, a Schedule I controlled substance, is a “party” drug sometimes referred to as “Molly.” Schaeffer took the stand and testified that he used “fake” guns in the robberies and denied ever using the revolver recovered from the storm drain.
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Tyler James Schaeffer included the FBI’s Safe Streets Task Force, KPD, Office of District Attorney General James B. Dunn, Tennessee Highway Patrol, Knox County Sheriff’s Office, Sevier County Sheriff’s Office, Sevierville Police Department, Blount County Sheriff’s Office, and Alcoa Police Department. Assistant U.S. Attorneys Kelly A. Norris and Tracy L. Stone represented the United States at trial.
Following sentencing on October 9, 2013, Schaeffer will be returned to Sevier County authorities to stand trial for a deadly automobile collision which occurred on September 16, 2012, as well as a burglary charge.
Federal Inmate Pleads Guilty to Escaping from Renewal CenterRead the Press Release
PITTSBURGH, Pa. – A Pittsburgh resident pleaded guilty to escaping from federal custody while serving a prison sentence, United States Attorney David J. Hickton announced today.
Tyrenzo Morton, 23, pled guilty before United States District Judge Alan N. Bloch.
On December 23, 2012, Morton escaped from federal custody at Renewal, Inc., in Pittsburgh, Pennsylvania, where he was serving the remaining portion of a federal prison sentence.
Sentencing is scheduled to occur on Aug. 22, 2013, at 11:30 a.m. The law provides for a maximum total sentence of up to five years in prison, a fine of up to $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 Craig W. Haller is prosecuting this case on behalf of the United States.
The United States Marshals Service and the Pittsburgh Bureau of Police investigated this case leading to the capture and conviction of Morton.
Fayette Co. Pill Dealer Pleads Guilty to Federal Drug ChargesRead the Press Release
Police found 17 firearms, hundreds of marijuana plants at defendant’s residence
CHARLESTON, W.Va. – A Fayette County pill dealer who sold approximately 250 powerful prescription painkillers over a two-year period pleaded guilty today to federal drug charges, announced U.S. Attorney Booth Goodwin. Vernon Peters III, 35, of Kincaid, Fayette County, W.Va., pleaded guilty today in federal court in Charleston to distribution of oxycodone. On March 20, 2012, Peters sold three 30-milligram oxycodone tablets to a police informant. The pill transaction occurred at the defendant’s Fayette County residence.
On March 19, 2012, members of the West Virginia State Police seized approximately 17 firearms and 236 marijuana plants from the defendant’s residence. A number of firearms at the residence were located in close proximity to the marijuana plants.
In total, Peters illegally sold approximately 250 30-milligram oxycodone pills in and around Fayette County.
Peters faces up to 20 years in prison and a $1 million fine when he is sentenced on August 22, 2013 by United States District Judge John T. Copenhaver, Jr.
The West Virginia State Police conducted the investigation. Assistant United States Attorney John File is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Executive Arrested for Child PornographyRead the Press Release
SAN JUAN, Puerto Rico —U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) special agents, and officers assigned to the Puerto Rico Crimes Against Children Task Force (PRCACTF) arrested Reinaldo Díaz-Camacho, aka “Rei Díaz”, 48, from Moca, PR, an executive at Pfizer Pharmaceutical, for production of child pornography, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
On May 6, 2013, Homeland Security Investigations (HSI), San Juan, Puerto Rico, Cyber Crimes Group (CCG) received information from the Puerto Rico Police Department (PRPD), Sexual Crimes Division (SCD) in Fajardo, PR regarding an adult male who was engaging in sexually explicit conversations with a 16 year-old male minor via Facebook.
On that same date, the victim’s mother was interviewed by HSI Agents. During the interview, she explained that earlier in the day she had seen a sexually explicit conversation between her son and Díaz-Camacho on the minor’s cell phone. The forensic examination of the minor’s cell phone revealed the presence of sexually explicit images. The minor had received sexually explicit images from Díaz-Camacho via Facebook and text messages.
After receiving consent from John Doe’s mother, an ICE-HSI Special Agent assumed the identity of the minor on Facebook and continued the conversation with Díaz-Camacho. During the conversation via Facebook, Díaz-Camacho requested that the minor victim send him nude images of himself.
Diaz-Camacho was brought before U.S. Magistrate Bruce McGiverin for his initial appearance, whereupon he was ordered temporarily detained in the Metropolitan Detention Center in Guaynabo awaiting the outcome of his case. If convicted, he faces a mandatory minimum sentence of 15 years incarceration and a possible maximum statutory sentence of 30 years incarceration. The case is being prosecuted by Assistant U.S. Attorney Marshal D. Morgan.
“The U.S. Department of Justice, through its Project Safe Childhood, will continue prosecuting sexual predators of minors,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. “The US Attorney’s Office, along with law enforcement agencies in Puerto Rico, will continue to track down these criminals, arrest them and bring them to justice,” said US Attorney Rosa Emilia Rodríguez-Vélez.
“At HSI, we have always said that the parents are the first line of defense in protecting our children from online predators,” said Ángel Meléndez, special agent in charge of HSI San Juan. “If it had not been for the proactive approach of this mother, this minor could still be a victim of this unscrupulous man. Child predators should take note that HSI will not rest until we identify you, arrest you and prosecute you.”
In response to the need for an island-wide approach to fighting the escalation of predatory crimes against children, HSI San Juan partnered with members of local, state and federal law enforcement, as well as local and state government officials and community leaders, to form PRCACTF in June 2011.Through PRCACTF, local, state and federal law enforcement agencies work together with local and state government agencies to effectively pool their resources to jointly investigate all crimes against children in Puerto Rico. Through the task force, law enforcement officers are encouraged to share evidence, ideas, and investigative and forensic tools to ensure the most successful prosecutions possible. As such, PRCACTF allows law enforcement to speak with one unified voice in defense of the children of Puerto Rico.
Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-843-5678.
Eighth Individual Sentenced in Connection with Costa Rica-Based Business Opportunity Fraud VenturesRead the Press Release
Sean Rosales, a dual United States and Costa Rican citizen, was sentenced today in connection with a series of business opportunity fraud ventures based in Costa Rica, the Justice Department and the U.S. Postal Inspection Service announced today. Rosales was sentenced by U.S. District Court Judge Ursula M. Ungaro in Miami to 97 months in prison and 5 years supervised release. Rosales was also ordered to pay more than $7.3 million in restitution.
On March 20, Rosales pled guilty to one count of an indictment pending against him, charging conspiracy to commit mail and wire fraud. Rosales was arrested in Chicago, Illinois late last year following his indictment by a federal grand jury in Miami on Nov. 29, 2011. The indictment alleged that Rosales and his co-conspirators purported to sell beverage and greeting card business opportunities, including assistance in establishing, maintaining and operating such businesses. The charges form part of the government’s continued nationwide crackdown on business opportunity fraud.
Prior to Rosales’ sentencing today, eleven other individuals were charged in connection with business opportunity fraud ventures based in Costa Rica. Rosales is the eighth of those individuals to be convicted and sentenced in the United States.
“Many Americans dream of owning and operating their own small business, but fraud schemes such as the one perpetrated by this defendant can turn that dream into a nightmare,” said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division. “The Department of Justice will continue to be aggressive in prosecuting those who take advantage of innocent, hardworking Americans through business opportunity fraud.”
Beginning in May 2005, Rosales and his coconspirators fraudulently induced purchasers in the United States to buy business opportunities in USA Beverages Inc., Twin Peaks Gourmet Coffee Inc., Cards-R-Us Inc., Premier Cards Inc., The Coffee Man Inc., and Powerbrands Distributing Company. The business opportunities cost thousands of dollars each, and most purchasers paid at least $10,000. Each company operated for several months, and after one company closed, the next opened. The various companies used bank accounts, office space and other services in the Southern District of Florida and elsewhere.
Rosales, using aliases, participated in a conspiracy that used various means to make it appear to potential purchasers that the businesses were located entirely in the United States. In reality, Rosales operated out of Costa Rica to fraudulently induce potential purchasers in the United States to buy the purported business opportunities.
The companies made numerous false statements to potential purchasers of the business opportunities, including that purchasers would likely earn substantial profits; that prior purchasers of the business opportunities were earning substantial profits; that purchasers would sell a guaranteed minimum amount of merchandise, such as greeting cards and beverages; and that the business opportunity worked with locators familiar with the potential purchaser’s area who would secure or had already secured high-traffic locations for the potential purchaser’s merchandise stands. Potential purchasers also were falsely told that the profits of some of the companies were based in part on the profits of the business opportunity purchasers, thus creating the false impression that the companies had a stake in the purchasers’ success and in finding good locations.
The companies employed various types of sales representatives, including fronters, closers and references. A fronter spoke to potential purchasers when the prospective purchasers initially contacted the company in response to an advertisement. A closer subsequently spoke to potential purchasers to finalize deals. References spoke to potential purchasers about the financial success they purportedly had experienced since purchasing one of the business opportunities. The companies also employed locators, who were typically characterized by the sales representatives as third parties who worked with the companies to find high-traffic locations for the prospective purchaser's merchandise display racks.
Rosales, using aliases, was a fronter for USA Beverages, a fronter and reference for Twin Peaks, a fronter and reference for Cards-R-Us, a fronter, locator and reference for Premier Cards, a locator for Coffee Man, and a locator for Powerbrands.
Each of the companies was registered as a corporation and rented office space to make it appear to potential purchasers that its operations were fully in the United States. USA Beverages was registered as a Florida and New Mexico corporation and rented office space in Las Cruces, N.M. Twin Peaks was registered as a Florida and Colorado corporation and rented office space in Fort Collins, Colo., and Cards-R-Us was registered as a Nevada corporation and rented office space in Reno, Nev. Premier Cards was registered as a Colorado and Pennsylvania corporation and rented office space in Philadelphia, and The Coffee Man was registered as a Colorado corporation and rented office space in Denver. Powerbrands was registered as a Wisconsin corporation and rented office space in Glendale, Wisconsin and Palm Beach Gardens, Fla.
“Fraudulent business opportunity sellers must realize that financial fraud victimizing Americans will be prosecuted vigorously, even if the fraudsters conduct their operations from abroad,” said Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida. “Increased international law enforcement cooperation eliminates safe havens for those who seek to cheat Americans from overseas.”“The success of this investigation shows that the U.S. Postal Inspection Service is committed to working with the Department of Justice and our law enforcement partners, both foreign and domestically, to protect Americans from the predatory nature of business opportunity frauds,” said Ronald Verrochio, U.S. Postal Inspector in Charge, Miami Division.
Acting Assistant Attorney General Delery commended the investigative efforts of the Postal Inspection Service. The case was being prosecuted by Assistant Director Jeffrey Steger and trial attorney Alan Phelps with the U.S. Department of Justice Consumer Protection Branch.
Eighth Individual Sentenced in Connection with Costa Rica-Based Business Opportunity Fraud VenturesRead the Press Release
Operation Had Connections to Florida, New Mexico, Colorado, Nevada, Wisconsin and Pennsylvania
Sean Rosales, a dual United States and Costa Rican citizen, was sentenced today in connection with a series of business opportunity fraud ventures based in Costa Rica, the Justice Department and the U.S. Postal Inspection Service announced today. Rosales was sentenced by U.S. District Court Judge Ursula M. Ungaro in Miami to 97 months in prison and 5 years supervised release. Rosales was also ordered to pay more than $7.3 million in restitution.
On March 20, Rosales pled guilty to one count of an indictment pending against him, charging conspiracy to commit mail and wire fraud. Rosales was arrested in Chicago, Illinois late last year following his indictment by a federal grand jury in Miami on Nov. 29, 2011. The indictment alleged that Rosales and his co-conspirators purported to sell beverage and greeting card business opportunities, including assistance in establishing, maintaining and operating such businesses. The charges form part of the government’s continued nationwide crackdown on business opportunity fraud.
Prior to Rosales’ sentencing today, eleven other individuals were charged in connection with business opportunity fraud ventures based in Costa Rica. Rosales is the eighth of those individuals to be convicted and sentenced in the United States.
“Fraudulent business opportunity sellers must realize that financial fraud victimizing Americans will be prosecuted vigorously, even if the fraudsters conduct their operations from abroad,” said Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida. “Increased international law enforcement cooperation eliminates safe havens for those who seek to cheat Americans from overseas.”
“Many Americans dream of owning and operating their own small business, but fraud schemes such as the one perpetrated by this defendant can turn that dream into a nightmare,” said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division. “The Department of Justice will continue to be aggressive in prosecuting those who take advantage of innocent, hardworking Americans through business opportunity fraud.”
Beginning in May 2005, Rosales and his coconspirators fraudulently induced purchasers in the United States to buy business opportunities in USA Beverages Inc., Twin Peaks Gourmet Coffee Inc., Cards-R-Us Inc., Premier Cards Inc., The Coffee Man Inc., and Powerbrands Distributing Company. The business opportunities cost thousands of dollars each, and most purchasers paid at least $10,000. Each company operated for several months, and after one company closed, the next opened. The various companies used bank accounts, office space and other services in the Southern District of Florida and elsewhere.
Rosales, using aliases, participated in a conspiracy that used various means to make it appear to potential purchasers that the businesses were located entirely in the United States. In reality, Rosales operated out of Costa Rica to fraudulently induce potential purchasers in the United States to buy the purported business opportunities.
The companies made numerous false statements to potential purchasers of the business opportunities, including that purchasers would likely earn substantial profits; that prior purchasers of the business opportunities were earning substantial profits; that purchasers would sell a guaranteed minimum amount of merchandise, such as greeting cards and beverages; and that the business opportunity worked with locators familiar with the potential purchaser’s area who would secure or had already secured high-traffic locations for the potential purchaser’s merchandise stands. Potential purchasers also were falsely told that the profits of some of the companies were based in part on the profits of the business opportunity purchasers, thus creating the false impression that the companies had a stake in the purchasers’ success and in finding good locations.
The companies employed various types of sales representatives, including fronters, closers and references. A fronter spoke to potential purchasers when the prospective purchasers initially contacted the company in response to an advertisement. A closer subsequently spoke to potential purchasers to finalize deals. References spoke to potential purchasers about the financial success they purportedly had experienced since purchasing one of the business opportunities. The companies also employed locators, who were typically characterized by the sales representatives as third parties who worked with the companies to find high-traffic locations for the prospective purchaser's merchandise display racks.
Rosales, using aliases, was a fronter for USA Beverages, a fronter and reference for Twin Peaks, a fronter and reference for Cards-R-Us, a fronter, locator and reference for Premier Cards, a locator for Coffee Man, and a locator for Powerbrands.
Each of the companies was registered as a corporation and rented office space to make it appear to potential purchasers that its operations were fully in the United States. USA Beverages was registered as a Florida and New Mexico corporation and rented office space in Las Cruces, N.M. Twin Peaks was registered as a Florida and Colorado corporation and rented office space in Fort Collins, Colo., and Cards-R-Us was registered as a Nevada corporation and rented office space in Reno, Nev. Premier Cards was registered as a Colorado and Pennsylvania corporation and rented office space in Philadelphia, and The Coffee Man was registered as a Colorado corporation and rented office space in Denver. Powerbrands was registered as a Wisconsin corporation and rented office space in Glendale, Wisconsin and Palm Beach Gardens, Fla.
“The success of this investigation shows that the U.S. Postal Inspection Service is committed to working with the Department of Justice and our law enforcement partners, both foreign and domestically, to protect Americans from the predatory nature of business opportunity frauds,” said Ronald Verrochio, U.S. Postal Inspector in Charge, Miami Division.
Acting Assistant Attorney General Delery commended the investigative efforts of the Postal Inspection Service. The case was being prosecuted by Assistant Director Jeffrey Steger and trial attorney Alan Phelps with the U.S. Department of Justice Consumer Protection Branch.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
East St. Louis Man Sentenced for Firearm OffenseRead the Press Release
Akai J. Aikens, 29, of East Saint Louis, IL, was sentenced on May 20, 2013, in federal district court, in East St. Louis, IL, on one count of unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Aikens was sentenced to 48 months’ in prison, three years supervised release, and ordered to pay a $100 special assessment. Aikens pled guilty on December 11, 2012. He also agreed to forfeit the firearm. The charges stem from an October 5, 2012, incident when a law enforcement officer on patrol in East St. Louis, observed a vehicle traveling with numerous objects hanging from the review mirror, obstructing the driver’s view. The officer attempted to stop the vehicle, when it abruptly swerved into a bar and car wash parking lot. Aikens exited the car from the passenger side, running behind the car wash. After repeated demands by the officer for him to return and threats to release a canine, Aikens emerged from behind the building. The canine was released to search the area, locating a Glock Model 22c.40 caliber semi-automatic pistol behind the car wash moments later.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Illinois State Police Department and prosecuted by Assistant United States Attorney Daniel T. Kapsak.
East St. Louis Man Sentenced for Firearm OffenseRead the Press Release
Joseph L. Edwards, 26, of East St. Louis, IL, was sentenced in federal district court on May 20, 2013, in East St. Louis, IL, to 30 months’ in prison, to be followed by three years’ supervised release, a $100 special assessment, and a $100 fine, for unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
At his plea, Edwards admitted that on October 25, 2011, he possessed a firearm and ammunition after having been previously convicted on August 21, 2009, of a state felony offense. Court proceedings revealed that law enforcement officials recovered one Smith and Wesson, .38 Special Caliber, five-shot revolver and four .38 special cartridges at his residence in East St. Louis, Illinois, after investigating an anonymous tip regarding the firing of guns at the home.
This case resulted from the efforts of the WAVE (Working Against Violent Elements) Task Force, which focuses its efforts on combating violent crime in East St. Louis, Washington Park, and surrounding communities. The WAVE Task Force receives financial support through the Department of Justice’s Project Safe Neighborhoods (PSN) initiative, a nationwide federal program which endeavors to address gun-related violence.
This investigation was conducted by the WAVE Task Force, and the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Duluth Man Indicted for the Sex Trafficking of A ChildRead the Press Release
MINNEAPOLIS—A federal indictment unsealed late today charges a 32-year-old Duluth man with the sex trafficking of a child for approximately seven months last year. The indictment, which was filed on May 7, 2013, charges Markeace Arque Canty with one count of conspiracy to commit sex trafficking of a child, one count of sex trafficking of a child, and one count of receipt of child pornography. The indictment was unsealed following Canty’s initial appearance in federal court this afternoon.
The indictment alleges that from at least July 2012 through January 2013, Canty recruited, transported, and coerced the female victim, who was under the age of 18 at the time, to engage in commercial sex acts, from which Canty benefitted financially. Canty purportedly purchased “escort” advertisements on the website known as backpage.com and transported the female victim to locations in Duluth, Minneapolis, and elsewhere to meet advertisement responders at motels, where the victim engaged in sexual acts in exchange for money. Specifically, on September 12, 2012, law enforcement in Indiana responded to one of the advertisements and arrested the female victim after she reportedly agreed to perform sex acts in exchange for money. The advertisement in that instance purportedly included a phone number registered to Canty. The indictment also alleges that Canty attempted to arrange for the female victim’s release from jail after she was arrested on state prostitution charges.As to the charge of receipt of child pornography, the indictment states that on January 15, 2013, Canty received visual depictions via a computer of a minor engaged in sexually explicit conduct.
If convicted, Canty faces a potential maximum penalty of life in prison on each of the sex trafficking counts and ten years on the charge of receipt of child pornography. Any sentences would be determined by a federal district court judge.
This case is the result of an investigation by the Federal Bureau of Investigation and the Duluth Police Department, with cooperation from U.S. Customs and Border Protection, the St. Louis County Attorney’s Office, the Fargo and Grand Forks, North Dakota, police departments, the Grand Forks County Sheriff’s Office in North Dakota, the Eau Claire, Wisconsin, police department, and the Porter County Sheriff’s Office in Indiana. It is being prosecuted by Assistant United States Attorney Thomas Calhoun-Lopez.
In 2012, Yuri Fedotov, the head of the United Nations’ Office on Drugs and Crime reported to those attending a U.N. General Assembly meeting that an estimated 2.4 million people worldwide are victims of human trafficking at any one time, with 80 percent of them being exploited as sex slaves. He also stated that approximately $32 billion is earned collectively every year by the criminals who operate human trafficking networks. The U.S. Department of Justice estimates that 14,500 to 17,500 people are trafficked within the U.S. alone each year.
For more information, visit http://www.fbi.gov/about-us/investigate/civilrights/human_traffickingAn 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.
District Man Sentenced to Four Years in Prison for Armed Robbery, Admitted Stealing Dog at Gunpoint-Defendant Told Victim: “Yorkies Cost A Lot of Money”-Read the Press Release
WASHINGTON – Christopher Young, 18, of Washington, D.C., was sentenced today to a four-year prison term on a charge of armed robbery stemming from an attack in which he stole a dog from a woman at gunpoint, U.S. Attorney Ronald C. Machen Jr. announced.
Young pled guilty in March 2013 in the Superior Court of the District of Columbia. He was sentenced by the Honorable Robert I. Richter. Upon completion of his prison term, Young will be placed on five years of supervised release.
According to the government’s evidence, on Jan. 5, 2013, at about 10:35 a.m., Young approached a woman who was walking her Yorkshire Terrier in the area of Fifth and Kennedy Streets NE. Young displayed a handgun and said, “Give me your dog. Yorkies cost a lot of money.” He then grabbed the victim’s dog and ran toward Chillum Place NE.
The victim, who yelled for help, noticed that Young dropped his phone on Kennedy Street directly next to where the dog’s leash had dropped. While Young continued running, the dog escaped and ran to its home. Officers with the Metropolitan Police Department (MPD) determined that the dropped phone belonged to Young, and learned that he had a GPS device on his ankle. Police obtained Young’s GPS records, which placed him directly in the area of 5th and Kennedy at the time of the robbery as well as in the flight path described by witnesses.
In announcing the sentence, U.S. Attorney Machen commended those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Debra McPherson and Assistant U.S. Attorney Natalia Medina, who prosecuted the case.
13-177Detroit man pleads guilty to money laundering conspiracyRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Carl Faheem Muhammad, 32, of Detroit, Michigan, pleaded guilty to conspiring with others to launder over $183,000 before Chief U.S. District Court Judge William M. Skretny. Muhammad is scheduled to be sentenced on September 11, 2013. The charge carries a maximum penalty of 20 years in prison and a $500,000 fine.
According to Assistant U.S. Attorney Fauzia K. Mattingly, who is handling the case, Muhammad directed eight other Detroit area residents to receive payments from victims who had applied for loans over the Internet with seemingly legitimate financial lenders which were in fact virtual companies being operated by online scammers in Canada. After wire transfers from the victims were received in Detroit, Muhammad transported the funds to the scammers in Canada. The victims, some of whom were from Western New York, were led to believe that once they paid the up-front fees, they would receive the loan proceeds. The victims never received the loans or a refund of their payments. To date, defrauded victims have lost more than $3.5 million to the loan scheme, and approximately 2,700 victims of the fraud have been identified by law enforcement. A total of 21 people have been arrested in connection with this fraud scheme. The defendant is the fourth to be convicted.
Sentencing is scheduled for September 11, 2013 at 9:00 a.m. before Judge Skretny.
The plea is the result of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge, James C. Spero.Defense Contractors Sentenced in North Island Bribery CaseRead the Press Release
United States Attorney Laura E. Duffy announced today that two individuals and a corporation were sentenced by U. S. District Judge Larry Alan Burns in federal court in San Diego, in connection with their participation in a fraud and corruption scheme at Naval Air Station (NAS) North Island, in Coronado, California. The three defendants were Robert Ehnow, the owner and President of Poway defense contractor L&N Industrial Tool & Supply Inc. (“L&N”); Joanne Loehr, the owner and President of Poway defense contractor Centerline Industrial Inc. (“Centerline”); and Centerline itself, a California corporation.
According to court records, during the course of the conspiracy, the Department of Defense paid Ehnow’s company, L&N, over $3 million. Centerline obtained over $1.8 million in payments from the Defense Department during the conspiracy. A third defense contractor, X&D Supply, Inc. (“X&D”), located in Carlsbad, California, was paid over $2 million during the conspiracy.
For his role in the corruption scheme, Ehnow was sentenced to serve 36 months in federal prison and was ordered to pay $759,937 in restitution to the United States Department of the Navy. Loehr was sentenced to serve 36 months in federal prison and was ordered to pay $300,000 in restitution to the Navy. Centerline was sentenced to a term of five years of probation and was ordered to forfeit $1,809,257 as proceeds of the scheme. Ehnow and Loehr were also sentenced to serve, upon their release from prison, three years of supervised release.
The three defendants were charged in an indictment with one count of engaging in a conspiracy to commit wire fraud, bribery, and money laundering, and with additional counts of bribery. The case was tried before a San Diego jury beginning on February 20, 2013. On March 4, 2013, after two days of deliberations, the jury returned guilty verdicts for each defendant as to the conspiracy count, and as to one or more bribery counts. The jury also acquitted each defendant on one or more bribery counts.
The evidence presented at trial showed that as part of the conspiracy, defense contractors provided Navy officials with a wide range of personal benefits, including cash, checks, retail gift cards, flat screen television sets, luxury massage chairs, bicycles costing thousands of dollars, model airplanes, and other items. In return, the Navy officials placed millions of dollars in government orders with the defense contractors.
Additionally, the defense contractors prepared and submitted fraudulent invoices to the Department of Defense, making it appear that they were billing the Department for goods and services within the scope of legitimate government contracts. In fact, the Defense Department was unknowingly paying for, among other things, the cost of bribes provided to the Navy officials. Compounding the cost of the fraud, the defense contractors also routinely charged a markup on the fraudulent invoices.
The defendants also engaged in money laundering by using L&N’s government contract to fraudulently bill the Navy for items that were never supplied. Then, at the request of Navy co-conspirators, Ehnow wrote checks passing along the criminal proceeds to Centerline and Loehr, keeping a portion for itself as compensation for serving as a conduit for the criminal proceeds.
L&N, also known as Mardoc Corporation, filed for Chapter 7 bankruptcy in June 2011. Centerline remains in business.
Today’s sentences bring to eleven the total number of defendants sentenced in connection with this scheme. Of the eight individuals previously convicted, five were Navy officials: Donald Vangundy, Kiet Luc, David Lindsay, Brian Delaney - all four of whom worked in the Navy's "E2/C2" aircraft program, which is dedicated to maintaining the tactical readiness of the Navy’s E-2 and C-2 aircrafts – and Kenneth Ramos, who worked in North Island’s Industrial Business Operations Department. These five former Navy officials admitted to receiving a total of more than $1 million in cash, goods, and services for their personal use, all fraudulently charged to and paid for by the Department of Defense in connection with this fraud and bribery scheme.
The other four defendants previously convicted were owners or sales managers of San Diego-area defense contracting firms: John Newman was the sales manager of L&N, Paul Grubiss was the sales manager of Centerline, Michael Graven was the owner and operator of X&D, and Jesse Denome was the owner and operator of JD Machine Tech Inc.
According to United States Attorney Duffy, the investigation into possible corruption at Naval Air Station North Island was initiated on the basis of citizen complaints. These complaints followed the July 2009 indictment of six individuals on fraud and corruption charges centered at the Space and Naval Warfare Systems Command (SPAWAR). As part of the SPAWAR corruption case, the government publicized a hotline dedicated to the reporting of possible waste, fraud, and abuse related to government and military contracts. U.S. Attorney Duffy noted that the investigation is ongoing and anyone with information relating to waste, fraud, and abuse in government contracting is urged to contact the Procurement Fraud Working Group hotline at: [email protected] or call 1-877-NOBRIBE.
U.S. Attorney Duffy stated, “These defense contractors told lies, and gave bribes, to get millions of dollars in business from the United States Navy. The sentences handed down today send a message that this corruption will not be tolerated.”
Chris D. Hendrickson, Special Agent in Charge for the Defense Criminal Investigative Service, Western Field Office added, “DCIS and our law enforcement partners will continue to aggressively pursue corruption investigations involving the operations of the DoD. Abusing the public trust has serious consequences and severe punishment is appropriate for stealing resources from our soldiers, sailors, airmen, marines and the American taxpayer.”
Jose A. Gonzalez, Special Agent in Charge of IRS Criminal Investigation’s (CI) Los Angeles Field Office commented, “Robert Ehnow’s and Joanne Loehr’s bribery of trusted naval officials of more than $1 Million in cash and other gifts, had the potential to erode the public’s basic trust in our economic system. Instead, the initial citizen complaint which led to the investigation and Ehnow’s and Loehr’s subsequent conviction, confirm the public’s refusal to tolerate criminal corruption by our public officials. Today’s sentencing brings Robert Ehnow and Joanne Loehr to justice and confirms IRS CI’s assurance to investigate fraud, corruption and money laundering crime by public officials.”
David House, Special Agent in Charge, Pacific Rim Region Office of Investigations for the General Services Administration Office of Inspector General, said, “The General Services Administration is the gateway for Federal procurement and is committed to promoting fair and honest competition among contractors. The GSAIG is committed to preserving the integrity of the Federal procurement process; bribery and kickbacks corrupt that process and will not be tolerated.”
DEFENDANTS Case Number: 12cr3320H Robert Ehnow
Joanne Loehr
Centerline Industrial Inc., a California corporation SUMMARY OF CHARGES IN CASE NO. 12CR3320-LABCount 1: Conspiracy to commit bribery, in violation of Title 18, United States Code, Section 371 (all defendants) - Maximum penalties: 5 years in prison, $250,000 fine, term of supervised release of three years, restitution, forfeiture, and $100 special assessment. (All defendants found guilty on Count One.)
Counts 2 to 7: Bribery, in violation of Title 18, United States Code, Section 201 (defendant Ehnow) - Maximum penalties (per count): 15 years in prison, $250,000 fine, term of supervised release of three years, restitution, and $100 special assessment. (Defendant Ehnow found guilty on Count Seven, not guilty on Counts Two through Six)
Counts 8 to 12: Bribery, in violation of Title 18, United States Code, Section 201 (defendants Loehr and Centerline) - Maximum penalties (per count): 15 years in prison, $250,000 fine, term of supervised release of three years, restitution, and $100 special assessment. (Defendants Loehr and Centerline found guilty on Counts Ninth through Twelve, not guilty on Count Eight)
Case Number: 12-CR-4071-LAB Sentenced on March 4, 2012 Kenneth Paul Ramos Case Number: 12-CR-1055-LAB Sentenced on September 10, 2012 Donald Vangundy
Kiet Luc
Brian Delaney
David Lindsay
John Newman
Michael Graven
Paul Grubiss Case Number: 10-CR-3737-LAB Sentenced on October 12, 2011 Jesse Denome INVESTIGATING AGENCIESFederal Bureau of Investigation
Defense Criminal Investigative Service
Internal Revenue Service - Criminal Investigation
General Services Administration - Office of Inspector General
Naval Criminal Investigative ServiceDefense Contractor Sentenced for Stealing Medical Equipment Intended for Deployed MarinesRead the Press Release
United States Attorney Laura E. Duffy announced that a Camp Pendleton defense contractor was sentenced today for his role in a scheme involving the theft of costly medical equipment that the military had planned to ship overseas to treat injured Marines.
In today’s court hearing, U.S. District Judge Cathy Ann Bencivengo sentenced Michael Tuisee to serve 6 months in prison, followed by 6 months of house arrest with GPS monitoring, and 3 years of supervised release. Judge Bencivengo also ordered Tuisee to forfeit $8,250 in illegal proceeds and pay $179,698.50 in restitution to the U.S. Marine Corps.
According to court records, Tuisee and his two co-conspirators worked in warehouses run by 1st Medical Logistics Company (“1st MEDLOG”) aboard Camp Pendleton. 1st MEDLOG is the unit responsible for maintaining medical equipment and shipping necessary medical items to combat forces throughout the world. By virtue of his employment as a civilian defense contractor, Tuisee had unfettered access to sophisticated medical equipment stored at 1st MEDLOG warehouses. Prior to sentencing, Tuisee admitted that he conspired to steal expensive medical equipment from 1st MEDLOG, including ventilators, autoclaves, defibrillators, headlights, and laryngoscopes. Tuisee repeatedly stole these costly medical items, loaded them into his personal vehicle, and surreptitiously sold them to medical equipment resellers – often meeting with buyers during nighttime rendezvous in secluded parking lots.
During today’s sentencing, Judge Bencivengo told Tuisee he abused his position and breached the Government’s trust when he stole military medical equipment and sold it for personal profit. U.S. Attorney Duffy echoed those sentiments, noting that she will continue to “vigorously investigate and prosecute those who seek profit at the expense our men and women in uniform.” Duffy reminded the public that these charges were the result of ongoing efforts to root out corruption among our area defense contractors. She encouraged the public to contact the Naval Criminal Investigative Service (NCIS) at 1- 800-264-6485 or www.ncis.navy.mil if they have any information relevant to the ongoing investigation into theft of medical equipment at Camp Pendleton.
DEFENDANT Case Number: 13cr0338-CAB Michael Tuisee SUMMARY OF CHARGESCount 1: Conspiracy to Engage in Theft of Government Property, Title 18, United States Code, Section 371 (all defendants)
INVESTIGATING AGENCYNaval Criminal Investigative Service
Davenport Man Sentenced to 25 Years in Prison for Conspiracy to Distribute Cocaine BaseRead the Press Release
DAVENPORT, IA – On May 17, 2013, Mauriosantana Paul Cowan, age 40, was sentenced to 300 months imprisonment for conspiracy to distribute 280 grams or more of cocaine base, announced United States Attorney Nicholas A. Klinefeldt. United States District Judge Stephanie M. Rose also sentenced Salinas to ten years of supervised release following the imprisonment.
From at least March 2009 and continuing until April 26, 2010, Cowan conspired with others to distribute large amounts of cocaine base. Cowan purchased cocaine base in Chicago from various sources and then redistributed these drugs to various individuals in the Quad Cities. Cowan purchased cocaine base in multiple ounce to half kilogram quantities and made deliveries in Davenport, Iowa, approximately every other week over a six month period.
This case was investigated by the Drug Enforcement Agency and the Davenport, Iowa, Police Department, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
DBSI Principals Plead Not Guilty to Securities Fraud, Wire Fraud, Mail Fraud, Bank Fraud and ConspiracyRead the Press Release
BOISE – Mark A. Ellison, 64, of Boise, Idaho; David D. Swenson, 35, of Boise, Idaho; and Jeremy Snow Swenson, 40, of Meridian, Idaho, appeared today in United States District Court and entered pleas of not guilty on a Superseding Indictment charging them with conspiracy to commit securities fraud, wire fraud, mail fraud, and interstate transportation of stolen property stemming from their involvement in the DBSI Group of Companies (DBSI), U.S. Attorney for the District of Idaho Wendy J. Olson announced. The case was set for a jury trial to commence on June 24, 2013, before Chief United States District Judge B. Lynn Winmill.
Mark Ellison founded DBSI along with Douglas Swenson who is also charged and previously pled not guilty to the indictment. Ellison served as DBSI’s general counsel during the period charged in the indictment. David D. Swenson and Jeremy Snow Swenson were assistant secretaries for DBSI. Founded in 1979 and headquartered in Meridian, Idaho, DBSI was essentially a conglomerate of real estate and non-real estate companies, including DBSI Housing and DBSI Securities.
According to the Superseding Indictment, from January 2007 through November 2008, the defendants publicly represented that DBSI was a profitable company and had a net worth in excess of $105 million. The indictment further alleges that the defendants knew and believed that, contrary to the disclosures made to investors and their own DBSI employees involved with the marketing and selling of DBSI investments, DBSI’s real estate and non-real estate business activities were universally unprofitable; DBSI’s much-touted Master Lease investment product was losing approximately $3 million dollars a month; and DBSI was relying on new investor funds, including investor money that DBSI represented would only be used in particular circumstances, to continue operations and pay returns to other DBSI investors. The indictment alleges that the conspiracy continued until DBSI filed for bankruptcy in November 2008. The 89 count Superseding Indictment also charges all of the defendants with 44 counts of securities fraud, 34 counts of wire fraud, six counts of interstate transportation of stolen property taken by fraud, and two counts of bank fraud. The defendants are also charged with conspiracy to commit money laundering.
Based on the conspiracy and fraud charges, the Superseding Indictment seeks forfeiture of properties and assets totaling $169 million.
The conspiracy to commit securities fraud, wire fraud, mail fraud and interstate transportation of stolen property charge is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release. The conspiracy to commit money laundering charge is punishable by up to 20 years in prison, a maximum fine of $250,000, and up to five years of supervised release. The securities fraud charges are each punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release. The wire fraud charges are each punishable by up to 20 years in prison, a maximum fine of $250,000, and up to five years of supervised release. The bank fraud charges are each punishable by up to 30 years in prison, a maximum fine of $1 million, and up to five years of supervised release. The interstate transportation of stolen property charges are each punishable by up to ten years in prison, a maximum fine of $250,000, and up to one year of supervised release. The false statement charge is punishable by up to two years in prison, a maximum fine of $250,000, and up to one year of supervised release.
The case was investigated by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation. The case is being prosecuted by Assistants United States Attorney George Breitsameter and Anthony Hall, and Department of Justice Tax Division Trial Attorney Mark Williams.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Colleyville, Texas, Man Sentenced to 18 Months in Federal Prison and Fined $30,000 on Income Tax Evasion ConvictionRead the Press Release
Defendant Norvell Moss a Licensed Pharmacist at Grapevine DrugMart
FORT WORTH, Texas — Norvell Moss was sentenced on Friday by U.S. District Judge John McBryde to 18 months in federal prison and ordered to pay a $30,000 fine and additional restitution of $8,277, to go along with the more than $94,000 he paid prior to sentencing, following his guilty plea in January 2013 to one count of income tax evasion. Judge McBryde ordered Moss to surrender to the Bureau of Prisons on June 7, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the felony Information filed in the case, Moss is a resident of Colleyville, Texas. The factual resume states that Moss is a licensed pharmacist and works as the head pharmacist for Grapevine Drug Mart, a family-owned and operated pharmacy in Grapevine, Texas.
The stipulated facts included in the factual resume note that Moss received quarterly and weekly payment of income drawn on Grapevine Drug Mart’s business accounts. The quarterly payments, generally received three to five times per year, varied in amounts ranging from $20,000 to $100,000. These payments were made payable to Mossman Management, dba Moss established in Tarrant County, and deposited into Mossman Management’s business bank account. The weekly payments (checks) were much smaller and were made payable to Moss or Mossman Management. From October 2006 through December 2008, Moss cashed the weekly checks.
The factual resume further stipulates that Moss willfully attempted to evade the amount of income tax he owed for tax year 2008 by failing to report approximately $194,150 that he received from Grapevine Drug Mart for that year. As a result of not reporting all of his income received, Moss had an additional tax due and owing of $58,233 for that year.
According to the public court record, two other defendants affiliated with Grapevine Drug Mart were recently convicted in the Northern District for tax-related felony offenses. Larry Lake, also a Colleyville resident and a part-owner of Grapevine Drug Mart, was convicted by a federal jury in Fort Worth in February 2013 on concealment of assets (bankruptcy fraud) and three counts of tax evasion. His son, Travis Lake, who managed Grapevine Drug Mart, pleaded guilty that same month to an indictment charging three counts of fraud and false statements in connection with tax returns he filed for tax years 2006, 2007 and 2008. Both Larry Lake and Travis Lake are awaiting sentencing.
The cases were investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Brian Poe and Tax Division Trial Attorney Robert A. Kemins are in charge of the prosecutions.
Coldspring Man Charged in Death of U.S. Postal Service WorkerRead the Press Release
HOUSTON – James Wayne Ham, 36, of Coldspring, was arrested Sunday and charged today with the murder of a mail carrier with the United States Postal Service (USPS), United States Attorney Kenneth Magidson announced today along with Inspector in Charge Robert Wemyss, United States Postal Inspection Service (USPIS).
“The safety of our workforce and, ultimately, the surrounding communities is of paramount concern to me and this office.” said Magidson. “The killing of a Postal Service worker in the course of his/her official duties is a crime that affects us all. Anyone who is believed to have committed a crime against an employee of the United States will be prosecuted to the fullest extent of the law.”
The complaint was filed just minutes ago in federal court in Houston. Ham is expected to make an initial appearance before U.S. Magistrate Judge Nancy Johnson tomorrow morning, at which time the government is expected to request he be held without bond pending further criminal proceedings.
“The USPIS takes very seriously any threats or violent acts committed against Postal Service employees,” said Wemyss. “We will work vigorously in conjunction with other law enforcement agencies to ensure responsible individuals are brought to justice and held accountable.”
The investigation began shortly following the receipt of a 911 call from the son of a USPS worker on Friday, May 17. He indicated he had been speaking with his mother via cell phone and heard two loud noises. His mother allegedly told him she had been shot. Shortly thereafter, the phone was disconnected, according to the complaint.
The complaint alleges the victim was shot on Friday shortly after delivering mail at Ham’s residence. The victim was on her normal rural delivery route in her personal vehicle. Ham allegedly shot her multiple times at close range with a .30/30 caliber rifle.
Ham then allegedly drove the vehicle to a nearby secluded area and set it on fire.
According to the complaint, the victim’s body was discovered Friday in her burning vehicle in San Jacinto County. Firefighters extinguished the flames and found the woman inside.
The investigation eventually led to Ham after it was discovered he had allegedly complained previously about not getting his mail delivered properly, according to the complaint.
Ham was located after an extensive manhunt and arrested without incident Sunday near his home in San Jacinto County.
If convicted, he could potentially face the death penalty.
The case is being investigated by the USPIS, San Jacinto County Sheriff’s Office, Texas Rangers, San Jacinto Constable Precinct 4, Texas Department of Criminal Justice, Montgomery County Sheriff’s Department, Texas Parks and Wildlife, San Jacinto County Fire Marshall and the San Jacinto County District Attorney’s Office. Also providing assistance was the Bureau of Alcohol, Tobacco, Firearms and Explosives and the volunteer fire departments in Point Blank and Cape Royale. Assistant United States Attorneys Ed Gallagher and Joe Magliolo are prosecuting.
Clinton Woman Sentenced to 21 Months Imprisonment for Tax OffensesRead the Press Release
DAVENPORT, IA – On May 17, 2013, Regina Jimenez, age 60, of Clinton, Iowa, was sentenced to 21 months imprisonment on two counts of filing false tax returns, announced United States Attorney Nicholas A. Klinefeldt. United States District Judge Stephanie M. Rose also sentenced Jimenez to one year of supervised release and ordered her to pay $332,465.00 in restitution.
Jimenez operated AA Accounting & Tax Services, Inc. in Clinton, Iowa from approximately 2007 through 2011. Jimenez used the business to facilitate the theft of over $300,000 from a client who believed that Jimenez would use the money to pay the client’s taxes. Jimenez instead used the money for gambling expenditures, and did not report the stolen funds on her tax returns.
This case was investigated by IRS Criminal Investigation, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Carl Lee Glass Sentenced to 106 Months in Federal Prison for Cocaine and Firearms ChargesRead the Press Release
GREENEVILLE, Tenn. – On May 20, 2013, Carl Lee Glass, 33, of Unicoi, Tenn., was sentenced to serve 106 months in prison by the Honorable J. Ronnie Greer, U.S. District Judge. Upon his release from prison, he will be subject to three years of supervised release.
Glass pleaded guilty in August 2012 to a conspiracy to distribute cocaine and possession of a firearm in furtherance of the trafficking of cocaine. He was the subject of an undercover investigation, where he was observed making numerous sales of cocaine. Because Glass possessed a firearm in furtherance of drug trafficking, he faced a minimum 60 month sentence, up to life, in prison for the firearm charge alone.
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Glass included the Unicoi County Sheriff’s Department, Tennessee Highway Patrol and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney J. Gregory Bowman represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
Canby Man Sentenced to 140 Months in Federal Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
PORTLAND, Ore. – U.S. District Judge Marco A. Hernandez today sentenced Darrell Michael Ostlund, 33, of Canby, Oregon, to 140 months in federal prison for possession with intent to distribute methamphetamine. The sentencing follows Ostlund’s guilty plea on February 15, 2013.
This investigation began on April 9, 2012, when an Oregon State Police trooper stopped a car travelling 85 miles per hour in a 55 mile per hour zone, near Canby, Oregon. The defendant was a passenger in that car and a small safe near his feet contained methamphetamine and packaging material.
A warrant was issued when the defendant failed to appear on earlier charges and on June 15, 2012, Canby police detectives arrested Ostlund after seeing him with others at a Wilsonville motel. When he resisted arrest, defendant was subdued; officers found two hotel room keys in his possession. Subsequent searches of the hotel rooms found two large baggies of methamphetamine and $3,271 in currency. The federal indictment charging Ostlund with possession with the intent to distribute methamphetamine was returned on September 5, 2012.
On October 17, 2012, a Portland Police officer saw defendant in a southeast Portland apartment complex driving a suspected stolen car. Ostlund became agitated, and fled, only to be struck by a Taser. When Ostlund fell to the ground, the Taser prongs dislodged and he was able to flee, until a K-9 unit arrived. He was located hiding in the complex, and arrested. A search of his vehicle revealed a plastic box hidden under the hood, containing a large quantity of methamphetamine and $1,365 in currency.
Court records show the defendant first used marijuana at age 15, began using methamphetamine at age 17, and turned to cocaine at age 18. He was a 1998 graduate of Canby High School, where he played football all four years and was selected as an all-conference player his senior year. He had nine prior arrests and convictions and was on post-prison supervision abscond status at the time of his arrest in April, 2012.
The case was investigated by the Canby Police Department, Oregon State Police, Portland Police and the Marion County Probation Office. Assistant U. S. Attorney John Haub prosecuted the case.
Braddock Man Charged with Possession of Child PornographyRead the Press Release
PITTSBURGH - A resident of Allegheny County was indicted on May 7, 2013, by a federal grand jury in Pittsburgh on a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The one-count indictment, unsealed on May 17, named David Dzermejko, 64, of Braddock, Pennsylvania, as the sole defendant.
According to the indictment, on or about January 11, 2013, Dzermejko possessed visual depictions, namely, still images in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of 10 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 Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Armed Career Criminal Pleads Guilty to Unlawful Possession of AmmunitionRead the Press Release
ALBUQUERQUE – Jonathan Matthew Sandoval, 26, of Albuquerque, N.M., entered a guilty plea this morning to being a felon in possession of ammunition. Under the terms of his plea agreement, Sandoval will be sentenced to 15 years in federal prison. Sandoval’s guilty plea was announced by U.S. Attorney Kenneth J. Gonzales and Thomas G. Atteberry, Special Agent in Charge of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Sandoval pled guilty to Count 1 of a superseding indictment charging him with unlawfully possessing ammunition in Aug. 2011, in Bernalillo County, N.M. At the time, Sandoval was prohibited from possessing firearms or ammunition because he previously had been convicted of numerous felony offenses in the 2nd Judicial District Court for the State of New Mexico, including four residential burglaries, an escape from community custody release program, and possession of a controlled substance. Sandoval also previously had been convicted of residential burglary in the 13th Judicial District Court for the State of New Mexico.
During today’s proceedings, Sandoval admitted possessing 30 cartridges of ammunition on Aug. 24, 2011, found in the trunk of his vehicle by law enforcement officers. Sandoval admitted telling the officers that the ammunition belonged to him and that he had purchased the ammunition at a shooting range.
Sandoval has been in federal custody since Dec. 2011, when he was transferred from state custody to face the charges in this case. Sandoval will remain detained pending his sentencing hearing, which has yet to be scheduled, when he will be sentenced under the Armed Career Criminal Act, which requires a mandatory minimum 15 year prison sentence for career criminals.
Sandoval was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department, with assistance from the 2nd Judicial District Attorney’s Office. It is being prosecuted by Assistant U.S. Attorney Lynn W.Y. Wang.Arkansas State Treasurer Martha Shoffner Charged with ExtortionRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Randall C. Coleman, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation, announced today that Arkansas State Treasurer Martha Shoffner, age 68, was charged by federal Complaint today with attempt and conspiracy to commit extortion under color of official right, in violation of Title 18, United States Code, Section 1951(a). Shoffner was arrested on May 18, 2013, and appeared today before United States Magistrate Judge H. David Young for an initial appearance on the federal Complaint. Shoffner was released from custody.
The Complaint alleges that Shoffner obtained cash payments, to which she was not entitled, from an individual, with the individual's consent, knowing that the cash payments were made under color of official right, in return for official acts as Arkansas State Treasurer. The allegations in support of the criminal complaint are set forth in the complaint affidavit, attached.
If convicted, Shoffner faces not more than 20 years in prison and up to a $250,000 fine, or both followed by not more than 3 years supervised release.
The investigation was conducted by the Federal Bureau of Investigation. Assistant United States Attorneys Jana Harris and Stephanie Mazzanti are prosecuting this case for the United States.
The charges set forth in a Complaint are merely allegations. A federal Grand Jury will decide whether to indict on these charges. The defendant is presumed innocent until proven guilty.
(Complaint and Affidavit Supporting Complaint )
19 May 2013
Defendant Pleads Guilty to Prohibited Possession of FirearmsRead the Press Release
United States Attorney Kenyen R. Brown announced today that Ted McCall Snow of Wilmer, Alabama, entered a guilty plea to a charge of being a felon in possession of firearms. The evidence presented in support of the plea was that on the morning of March 8, 2013, an individual returned to his residence on Woodland Hills Drive and found an unfamiliar vehicle in the carport. Snow was in the driver’s seat and sped away from the scene. The back door of the residence had been forced open and three firearms and a jewelry box had been removed from their usual resting places in the residence, and were sitting near the back door. The resident called the police and provided a description of the driver and the vehicle. Shortly thereafter, a Mobile Police Department officer stopped the vehicle driven by Snow at Schillinger Road and Old Government Street. The burglary victim was brought to the scene of the traffic stop and he identified Snow as the person he saw speed away from his residence.
Snow was previously convicted of eleven cases of burglary, receiving stolen property and theft in Mobile County Circuit Court between 1989 and 2007. By virtue of these convictions, and Snow’s resulting status as a convicted felon he is prohibited from possessing firearms or ammunition.
Possession of a firearm or ammunition by a previously convicted felon is a violation of Title 18, United States Code Section 922(g)(1). The statutory maximum penalty provided by law is 10 years imprisonment. If however, the Defendant has three prior convictions for violent felonies, such as burglary, or serious drug offenses, the penalty provided by law is a minimum mandatory sentence of 15 years to a maximum of life imprisonment.
Snow is scheduled to be sentenced before the Honorable Callie V.S. Granade on October 21, 2013. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Mobile County Sheriff’s Office, and the Mobile Police Department. The case is being prosecuted by the United States Attorney’s Office for the Southern District of Alabama.
18 May 2013
U.S. Attorney Ortiz Addresses Northern Essex Community College GraduatesRead the Press Release
Good morning! And thank you, President Glenn, members of the Board of Trustees, administrators, distinguished faculty, proud parents, family, friends, and especially the esteemed graduates of the Class of 2013! Congratulations!
It is such an honor to be here celebrating this very special achievement with you. Make no mistake about it, what you have accomplished during your time at Northern Essex Community College is truly remarkable – and this is just the beginning!
First, I would like to thank President Glenn for inviting me to attend this year’s commencement celebration and for affording me the privilege of addressing the graduates today.
I’d also like to acknowledge the family members here who partake in this shared sense of accomplishment: this is a big day for you as well! It is wonderful to see so many family members and friends here to share in the joy of this occasion. And I can tell who you are, not because you aren’t wearing silly square caps, but because you are beaming with pride and it’s written all over your faces. As a mom of a college graduate, I know how that feels!
On several occasions I have had the privilege of addressing graduates at their commencement ceremony. Invariably, it is a tremendous honor and a great responsibility to bestow advice because commencement speakers typically see this occasion as an opportunity – indeed a duty – to provide some guidance to graduates as they leave the halls of academia and enter “the real world”.
When I think about the so-called “real world” and what is ahead for all of you -- for all of us really -- I think about challenges and hardships; both big and small, and how people overcome them. I believe when tested, people rise to the occasion, and nothing exemplifies this more than the events associated with the Boston Marathon bombings. The challenges and hardships posed for so many people were unimaginable. Yet, ordinary people chose to act and risk harm in order to help others; as well as, professionals who risked their lives to save others and to restore peace to our community. There were many examples of people coming together, when we needed it most. If there is anything I have learned from this event is that as a people living in this great country, when needed, we all come together and look out for each other.
But I think many of you already know that. Most of you have already begun – or began long ago – confronting challenges and hardships.
At some point you came to a fork in the road where you had to choose between two, or three, or many options. You were faced with a choice, and you made the decision to endeavor down the path of higher education. You are here today because you know that through hard work and education, you will achieve the success you strive for. Now, you are blazing your trail and the legacy that you are creating is, I am sure, an inspiration to your friends and family. I know it is for me!
So what does that mean: to create your legacy? I can’t tell you what it means for each of you individually, but determining the path of your legacy is up to you to decide!
And in fact, one of your classmates, Omar Anagam, can tell you that from his own experience. Omar and his wife immigrated in 2000. To support his growing family, he worked a series of jobs in car sales, hospitality, and banking. In 2006 he enrolled at Northern Essex part-time, studying at night while working full-time.
Omar’s ‘fork in the road’ came in 2010 when he was laid-off . With encouragement from his wife, whom he calls his “big motivator”, Omar went back to school, full-time, to earn an Associate’s Degree in respiratory care, a health care program in high-demand.
Today, Omar is graduating with high honors. In the meantime, he is capitalizing on this momentum, making plans to earn a bachelor’s degree in health and wellness promotion.
Omar is living his legacy. His resolve, and the unyielding support of his wife, personifies one of the principles on which I have come to live by. I have learned, through the ups and downs of my personal and professional life, how important it is to surround yourself with people who believe in you, encourage you, and support your career and ambitions.
What many people don’t know is that I served as a prosecutor in the U.S. Attorney’s Office for 12 years before I even considered applying for the position of U.S. Attorney. When I decided to make a move and apply for this job under the Obama Administration, I began to have doubts. There were others who were being touted as favorites for the job. I second-guessed myself, thinking, “How could I overcome those odds?” It was my close friends, colleagues and family who encouraged me. They said, “Go for it. What do you have to lose?!” I am certain that without their support, I wouldn’t be here today.
So I urge all of you, graduates, to surround yourself with mentors, colleagues, friends and family who will help motivate you to keep moving forward. Looking around here, today, I think it’s safe to say that you’ve already found a few…hundred people that support you. From President Glenn to academic advisors, and support staff to faculty, the Northern Essex Community College family will always believe in you.
Each one of you came to this college at a different stage of life. I know that many of you were working while you attended school, or worked for several years before returning to school. I know the tremendous dedication, perseverance, and even sacrifice that this requires. I assure you that the rewards of earning an education will far outweigh those sacrifices, and Alice Beauchamp’s story serves as a great example.Alice didn’t have a college degree, but she served in a variety of positions in corporate finance. When she was laid-off during the recent recession, she thought she would easily find a new job. But she quickly realized that in the struggling job market, her lack of a degree posed difficulties in her search.
Alice decided to enroll at Northern Essex in business management, specializing in healthcare, would complement her past experience and allow her to use her career to help others. Earlier this spring, with her Associate’s Degree within reach, Alice secured a job as a business manager at the Lawrence YMCA. Already, it’s a job she loves.
I admire Alice. She never gave up on what she wanted to achieve most: a career that enabled her to help others. And that’s something that resonates with me as well.
When I was young, I wanted to be a lawyer because I believed it was a profession that I could utilize to help people. I grew up in a housing project in Spanish Harlem, the oldest of five children born to two, hardworking Puerto Rican parents. Like more than half of you, I too, was the first in my family to go to college. I saw the struggles of my neighbors and my friends. So it’s no surprise that once I became a lawyer, I was drawn time and again to a career in public service. It was a way for me to give back. I genuinely believe that a career in public service is a noble profession, one that takes commitment and sacrifice. Sometimes it means putting the needs of your community and the public before your own…and before your own family at times. Yet, serving the public can be tremendously satisfying.
I have been very fortunate in my career. My varied experiences as a state and federal prosecutor, defense attorney, and civil litigator, have prepared me for the job I now hold. Never could I have imagined that as a little girl who came from humble beginnings that I would one day become the U.S. Attorney for the District of Massachusetts. I think it goes to show that you should never give up on what you want to achieve.
If nothing else, the diploma you receive today should give you the confidence to assure yourself that you have what it takes. You need confidence to take certain leaps of faith at different times in your life…to choose the path that is most challenging.
Josiery Santos clearly has what it takes. Josiery immigrated to the U.S. in pursuit of an education. But before she could enroll in college courses, she needed to improve her English and get a full-time job. Josiery woke up at 4am each day and went into work where she was a manager at a fast food restaurant. She worked from 5am until 4 in the afternoon, before going to class for several hours in the evening. When she finally returned home, she did her homework and snuck in a few hours of sleep before waking up to repeat that exhaustive routine.
But her internship in the probation department at the Lawrence Courthouse has reassured her that her hard work is paying off and that the field of Criminal Justice is a perfect fit. Josiery is well on her way to fulfilling her desire for an education: she is graduating today from the Criminal Justice Program with honors and will transfer to UMass Lowell to continue her studies.
Josiery says that the United States is the “country of opportunity”, but that doesn’t mean that it didn’t take her a lot of hard work and perseverance to achieve her dreams.
Although I highlighted just a few stories of your peers, it is without a doubt that all of you have worked hard and have overcome adversity to be here today – to walk across this stage. For some, this may feel like just the beginning of your long journey – and for others this experience may feel like a detour, but a necessary step toward betterment of yourself, your family and your community. Regardless of the path each of you took to get here, today is an important day. It signifies your ability to forge ahead, overcome stereotypes and not let others’ perceptions define you or hold you back.
It’s been almost four years since I was sworn in as the U.S. Attorney. And, I have to tell you, there's never been a job at which I've worked so hard or that I’ve loved so much. To serve in this role has been an extraordinary privilege and being the first woman and the first Hispanic U.S. Attorney in Massachusetts is certainly not lost on me. In fact, it has been, and will continue to be, a source of strength and encouragement for me and hopefully, for others as well.
I am proud to be in the company today of so many graduates from diverse backgrounds such as myself: 65% of this year’s graduates are women, 37% are minorities, and more than half are first-generation college graduates.
I think that in our society, the demands and expectations on all of us have increased exponentially in recent years – especially as we seek to do it all: to balance a demanding career with family responsibilities. It is incumbent upon each and every one of us to do our part, to help weave the nation’s fabric with the colors and texture that represent the world in which we live.
I hope that as you go forth, you make that part of your legacy. You are our future leaders. It is up to you to inspire younger generations, to push the limits of conventionalism, and to define the evolving landscape of America.
So as you drive away from campus today, drive along your path with confidence. Don’t forget where you came from and return the goodwill that you benefitted from by helping those following in your footsteps.
I leave you with one last piece of advice, handed down from President Obama: “whether it’s starting a business, or running for office, or raising an amazing family, remember that making your mark on the world is hard. It takes patience. It takes commitment. It comes with plenty of setbacks and it comes with plenty of failures. But whenever you feel that creeping cynicism, whenever you hear those voices say you can’t make a difference, whenever somebody tells you to set your sights lower – the trajectory of this country should give you hope.”
Congratulations on reaching this moment, and thank you, once again, for allowing me to celebrate it with you.
DPNR Chief Enforcement Officer Arrested for Drug TraffickingRead the Press Release
St. Thomas, USVI – Roberto Tapia, Director of the Virgin Islands Department of Planning and Natural
Resources (DPNR) Division of Environmental Enforcement, was arrested Friday by federal agents and charged with conspiracy to possess with intent to distribute cocaine, and possession of a firearm in furtherance of drug trafficking.The arrest was announced by United States Attorney for the District of the Virgin Islands Ronald
W. Sharpe; U.S. Drug Enforcement Administration (DEA) Acting Special Agent-in-Charge Pedro Janer; Federal Bureau of Investigation (FBI) Special Agent in Charge Carlos Cases; Internal Revenue Service
Criminal Investigation Division (IRS-CI) Special Agent-in-Charge José A. Gonzalez; United States
Marshal for the District of the Virgin Islands Cheryl Jacobs; Virgin Islands Police Commissioner Rodney
Querrard; U.S. Department of Homeland Security, Homeland Security Investigations (HSI) Acting
Special Agent-in-Charge Angel Melendez; U.S. Customs and Border Protection (CBP) Special
Agent-in-Charge Marcelino Borges; United States Coast Guard Captain Drew Pearson, and the Bureau of
Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent-in-Charge Hugo Barrera.Tapia made his initial appearance in District Court today before Chief Judge Curtis V. Gomez, and was ordered held without bail pending a detention hearing Tuesday. According to the criminal complaint filed in District Court today, federal agents observed Tapia on Friday using a DPNR boat in furtherance of a drug trafficking conspiracy. At the time of the arrest, Tapia was armed, wearing clothing bearing official DPNR insignia and in possession of a bag containing approximately seven kilograms of cocaine.
If convicted, Tapia faces a statutory minimum penalty of 10 years in prison.
This case is being prosecuted by Assistant United States Attorneys Kelly B. Lake and Kim R.
Lindquist, and is being investigated by the DEA, FBI, U.S. Marshals Service, IRS-CI, VIPD, HSI, CBP, U.S. Coast Guard, ATF, and the Public Corruption Task Force.The public is reminded that a criminal complaint is merely a charging document and is not evidence of guilt. A defendant is presumed innocent until and unless proven guilty.
U.S. Attorney Sharpe also announced that a press conference will be held at 11 a.m. Monday in the
Ron deLugo Federal Building on St. Thomas.
17 May 2013
Wyoming Man Charged with Assault Resulting in Serious Bodily Injury and Assault with A Dangerous Weapon with Intent to Do Bodily HarmRead the Press Release
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced today that on May 16, 2013, Claude Lee Duran, Jr., a 26-year-old Northern Arapaho Tribal Member, appeared in Federal Court after having been indicted in a two count Indictment charging him with assault resulting in serious bodily injury in violation of 18 U.S.C. §§ 113(a)(6) and 1153 and with assault with a dangerous weapon with intent to do bodily harm in violation of 18 U.S.C. §§ 113(a)(3) and 1153. The charges against Mr. Duran stem from an incident that occurred on September 28, 2012 on the Wind River Indian Reservation in which he is alleged to have assaulted Blaine Collins Oldman with a bat, stick, or metal rod, causing serious injuries. This case is being investigated by the Federal Bureau of Investigation.
An indictment is only an accusation. In every criminal case, the accused is presumed to be innocent until proven guilty, and the government always has the burden of proving guilt at trial beyond a reasonable doubt.Wisconsin Woman Indicted for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wausau, Wisconsin woman has been indicted by a federal grand jury for Failure to Pay Legal Child Support.
Estella Melchor, age 34, was indicted by a federal grand jury on November 6, 2012 for failing to pay over $14,850.00 in past due child support. She appeared before U.S. Magistrate Judge John E. Simko on May 13, 2013 and pled not guilty to the indictment.
The maximum penalty upon conviction is two years imprisonment; a $250,000.00 fine; one year supervised release; one additional year upon revocation; a $100.00 assessment fee to the Federal Crime Victims Fund; and child support restitution amount owing at the time of sentencing.
The charge is merely an accusation and Melchor is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Thomas J. Wright is prosecuting the case.
Melchor was released on bond pending trial. A trial date has not been set.
Willowick Woman Accused of Claiming $5.2 Million in False RefundsRead the Press Release
On May 16th, IRS agents arrested Margaret Monone Greenaway on a two-count indictment charging her with claiming false income tax refunds totaling $5,271,794 for the years 2010 and 2011, said Steven M. Dettelbach, United States Attorney.
Greenaway filed income tax returns using her name during a prior marriage, Margaret M. Demaria-Susevich, on which she claimed refunds to which she was not entitled of $1,326,671 for 2010 and $3,945,123 for 2011, according to the indictment.
Greenaway, age 52, resides in Willowick, Ohio, according to court records. Following her arrest, Greenaway entered not guilty pleas before U.S. Magistrate Judge Kenneth S. McHargh, who ordered her to be temporarily detained while efforts were made to arrange for her release subject to home detention with electronic monitoring and the removal of computers from her home.
The case is assigned to United States District Judge David D. Dowd, in Akron.
The case was presented for indictment by Assistant United States Attorney John M. Siegel following an investigation by the Internal Revenue Service – Criminal Investigation, Cleveland, Ohio.
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.
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.
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Michael A Volpe, 44, of Staten Island, New York, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of wire fraud and money laundering.Magistrate Nuechterleinis recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation and the Indiana State Police.Sentencing is set for 8/15/2013 10:00 AM in US District Court - South Bend before Judge Jon E DeGuilio.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana—The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Alfonso Salinas, 52, of Hammond, Indiana, pled guilty before Chief Judge Philip Simon to the felony offenses of bribery involving federal programs and income tax evasion.Sentencing has been set for 8/13/13.These charges were filed as a result of an investigation by the Internal Revenue Service.This case is being prosecuted by Assistant United States Attorney Gary Bell.
Joshua Robinson, 22, of Lafayette, Indiana, pled guilty before Magistrate Judge Paul Cherry to the felony offense of possession of a firearm with an obliterated serial number.Magistrate Cherry is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Tippecanoe County Police Department and the Lafayette Police Department.This case is being prosecuted by Assistant United States Attorney Nicholas Padilla.
Che Williams, 21, of Gary, Indiana, pled guilty before Magistrate Judge Andrew Rodovich to the felony offense of possession of a firearm with an obliterated serial number.Magistrate Rodovich is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Indiana University Northwest Police and the Gary Police Department.This case is being prosecuted by Assistant United States Attorney Dean Lanter.
Jesus Vasquez, 35, of Cicero, Illinois, pled guilty before District Judge Joseph Van Bokkelen to the felony offense of distribution of 500 grams or more of cocaine.Sentencing has been set for 7/24/13.This charge was filed as a result of an investigation by the Drug Enforcement Administration.This case is being prosecuted by Assistant United States Attorney David Nozick.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITION:
Jennifer Guelinas, 55, of Valparaiso, Indiana, was sentenced by Senior District Judge James Moody to 4 years of probation, to include 12 months of detention, and restitution of $1,122,540.00 to Ameriprise Financial Services after pleading guilty to the felony offense of wire fraud.This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Jill Koster.
Noe Diaz, 33, of Chicago, Illinois, was sentenced by Senior District Judge James Moody to 121 months imprisonment and 5 years of supervised release after pleading guilty to the felony offense of conspiracy to possess with the intent to distribute 5 kilograms or more of cocaine and fifty grams or more of methamphetamine.This case was the result of an investigation by the Drug Enforcement Administration HIDTA Task Force.This case was prosecuted by Assistant United States Attorney David Nozick.
Cesar Diaz, 39, of Calumet City, Illinois, was sentenced by Senior District Judge James Moody to 30 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of distribution of cocaine.This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Joshua Kolar.
Marquis Young, 22, of Gary, Indiana, was sentenced by Senior District Judge James Moody to 84 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of use of a firearm in furtherance of a crime of violence.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Waynesville Couple Indicted for Meth Conspiracy; Officers Seized $414000 as Drug ProceedsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Waynesville, Mo., couple has been indicted by a federal grand jury for their role in a nearly $414,000 conspiracy to distribute methamphetamine in Pulaski and Laclede counties.
Bruce Conant, 58, and his wife Rendy Conant, 52, both of Waynesville, were charged in a four-count indictment returned under seal by a federal grand jury in Springfield, Mo., on May 8, 2013. That indictment was unsealed and made public upon the couple’s arrest and initial court appearance on Thursday, May 16, 2013.
The federal indictment alleges that the Conants participated in a conspiracy to distribute methamphetamine in Pulaski and Laclede counties from Feb. 20 to July 16, 2012. In addition to the conspiracy, they are charged with possessing 50 grams or more of pure methamphetamine with the intent to distribute.
Bruce Conant is also charged with two counts related to the illegal possession of a Charter Arms .38-caliber revolver. Conant is charged with possessing a firearm in furtherance of drug-trafficking crimes and with being a felon in possession of a firearm.
The indictment also contains forfeiture allegations, which would require the Conants to forfeit to the government any property derived from the proceeds of the alleged offenses, including $413,945, which was seized by law enforcement officers. According to the indictment, $84,165 was seized from the Conants on July 16, 2012 and $329,780 was seized from a storage facility rented by the Conants on July 17, 2012. The Conants would also be required to forfeit their residence in Waynesville, a 1995 Mustang Cobra, a 1998 BMW and a 1995 Chevrolet 1500. The Conants would also be required to forfeit personal property seized from their residence, including security and surveillance equipment, a coin collection, a flat screen television, police scanners, a telescope, a pair of binoculars, and night vision optics and scopes.
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. Attorneys Ami Harshad Miller and Cynthia Hyde. It was investigated by the Drug Enforcement Administration, IRS – Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missouri State Highway Patrol, the Laclede County Mo., Sheriff’s Department, the Pulaski County, Mo., Sheriff’s Department, the Waynesville, Mo., Police Department and the Pulaski County, Mo., Prosecuting Attorney’s Office.
Vancouver Washington Man Pleads Guilty to Trafficking in Counterfeit Vehicle AirbagsRead the Press Release
A 25 year-old Vancouver, Washington man pleaded guilty today in U.S. District Court in Tacoma to conspiracy to traffick in counterfeit goods, announced U.S. Attorney Jenny A. Durkan. VITALIY YAREMKIV, was arrested April 2, 2013 after being indicted by a grand jury in Seattle. In his plea agreement YAREMKIV admits that between June 2011 and June 2012, he sold more than 900 counterfeit vehicle airbags he had purchased from a source in China. Under the terms of the plea agreement both sides will recommend a sentence of ten months in prison, but U.S. District Ronald B. Leighton is free to impose any sentence up to the ten year maximum allowed by law. Sentencing is scheduled for August 23, 2013.
According to the statement of facts in the plea agreement, YAREMKIV operated a business, Vital Auto Parts and Sales, out of his Vancouver home. He allegedly imported counterfeit Honda, Subaru and Toyota airbags from sources in China and elsewhere, and sold them over the internet representing them as the genuine product. YAREMKIV sold at least 964 of the counterfeit airbags via eBay with a sales total of $137,243. YAREMKIV sold individual Honda airbags for an asking price of $110. Investigators believe that many of the airbags are sold to independent garages who install them in vehicles believing they have purchased a genuine airbag. YAREMKIV has agreed to pay restitution of $137,243 to Honda Motors Corporation and Toyota Motors Corporation.
Information for consumers regarding counterfeit airbags is available here: http://www.safercar.gov/.
The case was investigated by the FBI and Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Norman Barbosa.
United States Sues Brooklyn Fish Processors in Food Safety CaseRead the Press Release
The Department of Justice has filed a lawsuit and sought a preliminary injunction against N.Y. Fish Inc.; New York City Fish Inc.; Maxim Kutsyk, Pavel Roytkov, Leonid Staroseletesky, and Steven Koyfman under the federal Food, Drug, and Cosmetic Act (FDCA). New York City Fish manufactures and distributes ready-to-eat fishery products, including smoked salmon and mackerel, and operates out of a food processing facility located at 738 Chester Street in Brooklyn. N.Y. Fish previously operated a similar fish processing business out of the same location, employing virtually all of the same employees. Although N.Y. Fish has ceased manufacturing, FDA believes that N.Y. Fish products continue to be distributed and sold. The complaint alleges that all defendants have a history of processing fishery products under insanitary conditions, with inadequate safety procedures.
“Consumers depend on food producers to follow the right procedures to make sure our food is safe to eat,” said Acting Assistant Attorney General for the Civil Division Stuart F. Delery. “As this case demonstrates, the Department of Justice is committed to taking action against those who produce or process food under insanitary conditions or with inadequate safety procedures.”
“Inspectors who visited the defendants’ facility found more than Nemo; they found life-threatening bacteria. Despite repeated warnings and direction to sanitize the facility, the defendants have failed to do so. They cannot be allowed to continue to distribute potentially unsafe food to our families. Those who store, package and sell the food that we eat must maintain basic standards of cleanliness in their facilities. We are committed to protecting the public from health risks by ensuring that food manufacturers comply with federal laws prohibiting them from preparing, packing and holding food products under insanitary conditions,” stated Loretta E. Lynch, the United States Attorney for the Eastern District of New York.
According to the complaint, FDA conducted seven inspections of the Chester Street facility between 2006 and 2013. The inspections showed a repeated failure to minimize the risk of contamination by two dangerous types of bacteria: Listeria monocytogenes and Clostridium botulinum. People who eat food contaminated with Listeria monocytogenes can contract the disease listeriosis, which can be serious,even fatal,for vulnerable groups such as newborns and those with impaired immune systems. Complications from the disease can also lead to miscarriage. Clostridium botulinum spores can produce the toxin that causes botulism. Eating food tainted with this toxin can lead to paralysis and potentially death.
FDA’s most recent inspection occurred in February 2013, when New York City Fish was operating the Chester Street facility. According to court filings, the company missed critical processing steps that are essential to prevent the growth and toxin production of Clostridium botulinum and to eliminate any Listeria monocytogenes contamination, including heating fish for a dangerously short time and using insufficiently salty brining solution.
FDA previously investigated the facility in August 2012, when it was operated by N.Y. Fish. FDA inspectors discovered widespread sanitation problems and a similar failure to meet critical steps necessary to prevent contamination. They also found salmon products and production equipment contaminated with Listeria monocytogenes, even after the company attempted to clean and sanitize the facility.
Further testing by the FDA revealed that certain strains of Listeria monocytogenes it found likely had persisted in the Chester Street facility for years. FDA contends that the facility is so infiltrated with Listeria monocytogenes that New York City Fish must institute heightened monitoring and strict sanitation procedures to have any hope of eradicating this life-threatening organism, but that it has failed to do so.
The lawsuit is being brought by Assistant U.S. Attorney Elliot M. Schachner of the Eastern District of New York, and Trial Attorney Adrienne Fowler of the Civil Division’s Consumer Protection Branch, with the assistance of Associate Chief Counsel for Enforcement Julie Dohm of the FDA.
United States Sues Brooklyn Fish Processors in Food Safety CaseRead the Press Release
WASHINGTON, D.C. – The Department of Justice has filed a lawsuit and sought a preliminary injunction against N.Y. Fish Inc.; New York City Fish Inc.; Maxim Kutsyk, Pavel Roytkov, Leonid Staroseletesky, and Steven Koyfman under the federal Food, Drug, and Cosmetic Act (FDCA). New York City Fish manufactures and distributes ready-to-eat fishery products, including smoked salmon and mackerel, and operates out of a food processing facility located at 738 Chester Street in Brooklyn. N.Y. Fish previously operated a similar fish processing business out of the same location, employing virtually all of the same employees. Although N.Y. Fish has ceased manufacturing, FDA believes that N.Y. Fish products continue to be distributed and sold. The complaint alleges that all defendants have a history of processing fishery products under insanitary conditions, with inadequate safety procedures.
“Consumers depend on food producers to follow the right procedures to make sure our food is safe to eat,” said Acting Assistant Attorney General for the Civil Division Stuart F. Delery. “As this case demonstrates, the Department of Justice is committed to taking action against those who produce or process food under insanitary conditions or with inadequate safety procedures.”
“Inspectors who visited the defendants’ facility found more than Nemo; they found life-threatening bacteria. Despite repeated warnings and direction to sanitize the facility, the defendants have failed to do so. They cannot be allowed to continue to distribute potentially unsafe food to our families. Those who store, package and sell the food that we eat must maintain basic standards of cleanliness in their facilities. We are committed to protecting the public from health risks by ensuring that food manufacturers comply with federal laws prohibiting them from preparing, packing and holding food products under insanitary conditions,” stated Loretta E. Lynch, the U.S. Attorney for the Eastern District of New York.
According to the complaint, FDA conducted seven inspections of the Chester Street facility between 2006 and 2013. The inspections showed a repeated failure to minimize the risk of contamination by two dangerous types of bacteria: Listeria monocytogenes and Clostridium botulinum. People who eat food contaminated with Listeria monocytogenes can contract the disease listeriosis, which can be serious, even fatal, for vulnerable groups such as newborns and those with impaired immune systems. Complications from the disease can also lead to miscarriage. Clostridium botulinum spores can produce the toxin that causes botulism. Eating food tainted with this toxin can lead to paralysis and potentially death.
FDA’s most recent inspection occurred in February 2013, when New York City Fish was operating the Chester Street facility. According to court filings, the company missed critical processing steps that are essential to prevent the growth and toxin production of Clostridium botulinum and to eliminate any Listeria monocytogenes contamination, including heating fish for a dangerously short time and using insufficiently salty brining solution.
FDA previously investigated the facility in August 2012, when it was operated by N.Y. Fish. FDA inspectors discovered widespread sanitation problems and a similar failure to meet critical steps necessary to prevent contamination. They also found salmon products and production equipment contaminated with Listeria monocytogenes, even after the company attempted to clean and sanitize the facility.
Further testing by the FDA revealed that certain strains of Listeria monocytogenes it found likely had persisted in the Chester Street facility for years. FDA contends that the facility is so infiltrated with Listeria monocytogenes that New York City Fish must institute heightened monitoring and strict sanitation procedures to have any hope of eradicating this life-threatening organism, but that it has failed to do so.
The lawsuit is being brought by Assistant U.S. Attorney Elliot M. Schachner of the Eastern District of New York, and Trial Attorney Adrienne Fowler of the Civil Division’s Consumer Protection Branch, with the assistance of Associate Chief Counsel for Enforcement Julie Dohm of the FDA.
Two Men Indicted for Attempted Armed Robbery of Palisades National BankRead the Press Release
DENVER – Two men, Jose O. Jimenez and Bryan R. Morrow, have been indicted by a Federal Grand Jury charging them both with attempted armed bank robbery, the U.S. Attorney’s Office, the Federal Bureau of Investigation, and the Palisade Police Department announced. In addition, Jimenez also faces firearms offenses. Jimenez was arraigned on the indictment in U.S. District Court in Denver yesterday (May 16th). Morrow is currently being held on unrelated charges, and is expected to make his initial appearance in U.S. District Court in Grand Junction on May 22, 2013 at 2:00 p.m.
According to the Indictment, on August 20, 2011 Jimenz and Morrow did knowingly by force and violence, and by intimidation, attempt to take money from Palisades National Bank, located in Palisade, Colorado. The indictment further alleges that Jimenez, a fugitive from Washington State, did knowingly possess a firearm which previously had been transported in interstate commerce. Jimenz is also accused of possessing a Glock 22 .40 caliber semi-automatic pistol he obtained during the armed bank robbery.
“This was a brazen attempt to rob this bank,” said U.S. Attorney John Walsh. “Thanks to the efforts of the FBI and the Palisade Police Department, the community, which was traumatized by this crime, can rest easy knowing those responsible have been apprehended.”
“These indictments illustrate the FBI’s commitment to work with its partners to address violent crime,” said FBI Denver Special Agent in Charge Thomas Ravenelle. “We extend our gratitude to the Palisade and Grand Junction Police Departments, the Mesa County Sheriff’s Office and the United States Attorney’s Office for working together to further this investigation and bringing charges forward on Jimenez and Morrow.”
“The armed bank robbery was incredibly traumatic for the victims of the crime, especially the bank tellers and for the officer who responded to the bank,” said Palisade Police Chief Tony Erickson. “The robbery has not only impacted the bank employees, it also has had an impact on the police officers and the citizens of Palisade. Thanks to the hard work of the Palisade Police Department and the FBI, we were able to identify those responsible for the crime.”
If convicted, both men face not more than 25 years in federal prison, and up to a $250,000 fine for attempted armed bank robbery. In addition, Jimnez faces not more than 10 years in prison and a fine of up to $250,000 for both being a fugitive from justice in possession of a handgun and for possession of a stolen firearm.
This case was investigated by the Federal Bureau of Investigation (FBI) and the Palisade Police Department with assistance from the Grand Junction Police Department and the Mesa County Sheriff’s Office. The defendants are being prosecuted by Assistant U.S. Attorney Michelle Heldmyer.The charges contained in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
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Two Foreign Nationals Sentenced in Houston to Prison for Human SmugglingRead the Press Release
Indian national Kaushik Jayantibhai Thakkar and Brazilian national Fabiano Augusto Amorim were each sentenced today to serve 36 months in prison for their roles in smuggling undocumented migrants to the United States for private financial gain, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson for the Southern District of Texas and U.S. Immigration and Customs Enforcement (ICE) Director John Morton.
Thakkar, 33, and Amorim, 28, were sentenced by U.S. District Judge Ewing Werlein Jr. in the Southern District of Texas. In addition to their prison terms, Thakkar and Amorim were sentenced to serve two years of supervised release.
On Dec. 2, 2012, and Jan. 4, 2013, respectively, Thakkar and Amorim each pleaded guilty to one count of conspiracy to bring undocumented migrants into the United States for profit and to one count of unlawfully bringing two undocumented migrants into the United States for profit.
According to court documents, Thakkar and Amorim worked together and with other co-conspirators to smuggle individuals from India into the United States. In support of the conspiracy, Thakkar and others recruited individuals in India who were willing to pay up to $60,000 to be smuggled into the United States. For their smuggling operations, Thakkar and Amorim and their associates used a network of co-conspirators in South America, Central America, the Caribbean and the United States, including the state of Texas. Using this network, Thakkar, Amorim and their co-conspirators transported groups of undocumented migrants from locations within India through South America, Central America and the Caribbean and then into the United States by various means, including by air travel, automobiles, water craft and foot. Many of these smuggling events involved illegal entry into the United States via the border between the United States and Mexico near McAllen and Laredo, Texas.
A third co-conspirator, Maria Adela De Luna, pleaded guilty on Nov. 9, 2012, to one count of conspiracy to harbor undocumented migrants in the United States. On Feb. 15, 2013, De Luna was sentenced to serve 19 months in prison and three years of supervised release for her role in the conspiracy.
The investigation was conducted by agents with ICE-Homeland Security Investigations (HSI) in McAllen and Houston, with the assistance of U.S. Customs and Border Protection’s Alien Smuggling Interdiction Unit. This case is being prosecuted jointly by Assistant U.S. Attorneys Leo J. Leo III and Casey MacDonald of the Southern District of Texas and Trial Attorney Stephen Curran of the Criminal Division’s Human Rights and Special Prosecutions Section.
The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.Trucking Company Owner IndictedRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Devasko Dewayne Lewis, age 34, of Lowndes County, Georgia, was indicted by a Federal Grand Jury sitting in Macon, Georgia on May 16, 2013 for two counts of making False Statements in a matter within the jurisdiction of a Federal agency in violation of Title 18 United States Code, Sections 1001 and 2, as well as Conspiracy to Continue Operations After Imposition of an Out-of-Service Order, in violation of Title 49, Code of Federal Regulations, Section 386.72 and in in connection with Title 49, United States Code, Section 521(B)(6)(A). A copy of the indictment as filed in United States District Court for the Middle District of Georgia is attached.
The indictment alleges that Mr. Lewis and his prior company, Lewis Trucking, was the subject of an Imminent Hazard Operations Out-of-Service Order issued by the Department of Transportation, Federal Motor Carrier Safety Administration, which was served on Mr. Lewis on October 6, 2008 and has remained in effect since. Mr. Lewis violated the Order by continuing to operate commercial motor vehicles and concealing his true involvement by filing the applications for Department of Transportation Motor Carrier Numbers under names other than his own.
If convicted, Mr. Lewis faces imprisonment up to five (5) years, a fine of up to $250,000.00, and up to three (3) years supervised release, a mandatory assessment fee of $100.00 as to each of the false statement counts. With regard to the conspiracy count, the maximum penalty in the event of conviction is one (1) year imprisonment, up to $25,000.00 fine or both, and up to one (1) year supervised release, $25.00 mandatory assessment fee of $25.00.An indictment is only an accusation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt at trial.
The case was investigated by United States Department of Transportation, Office of Inspector General and the United States Department of Transportation, Federal Motor Carrier Safety Administration. The case is being prosecuted by Assistant United States Attorney Robert D. McCullers.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney’s Office at (478) 621-2602.
Town of Niagara Man Sentenced on Drug Conspiracy ChargeRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Robert Gardiner, 29, of the Town of Niagara, N.Y., who was convicted of conspiracy to manufacture methamphetamine, was sentenced to one year in prison and three years supervised release by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that on May 3, 2012, members of the Niagara County Drug Task Force and the Drug Enforcement Administration executed a search warrant at the defendant's residence, a mobile home on Quain Place in the Town of Niagara. Agents found an active methamphetamine lab in the kitchen of the mobile home. They also seized precursor chemicals and ingredients used to manufacture methamphetamine, a loaded 12-gauge Mossberg shotgun, shotgun shells, a digital camera, and drug paraphernalia and spent blister packs from the pseudophedrine tablets.
Co-defendant Jason Hannon, 38, also of the Town of Niagara, NY, was sentenced to 63 months in prison by Judge Arcara on March 13, 2013. Two other co-defendants, Roberta Hannon, 45, of the Town of Niagara, and Keith Crossley, 39, of Niagara Falls, pleaded guilty to conspiracy to manufacture methamphetamine and are awaiting sentencing.
The sentencing is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, new York Field Office and the Niagara County Drug Task Force, under the direction of Sheriff James Votour.Three Jackson County Men Charged with Methamphetamine ConspiracyRead the Press Release
Three Jackson County, Illinois, residents were indicted on May 9, 2013, and charged with conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
On May 13, 2013, and May 14, 2013, Donald Gregory, 47, and Jaben Graff, 35, both of Murphysboro, and Daniel Loden, 30, of Grand Tower, were arraigned in United States District Court in Benton on the charge. The indictment alleges that the offense occurred between March 2011 and March 2013 in Jackson County. At a May 16, 2013, detention hearing, Gregory and Graff were ordered held without bond pending a July 15, 2013, jury trial. Loden was released on bond.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, Gregory, Graff, and Loden face a term of a minimum of 5, but not more than 40 years in prison, a $5,000,000 fine, and 4 years of supervised release.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office and Murphysboro Police Department.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.