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16 May 2013
New Jersey Man Sentenced to Six Years in Prison for Loan FraudRead the Press Release
PHILADELPHIA - Robert Coyle, Sr., 68, of Glassboro, New Jersey, was sentenced today to 72 months in prison for a loan fraud scheme that attempted to swindle more than $10 million from three banks. He pleaded guilty to two counts of loan fraud on October 1, 2012.
Coyle owned and/or rented more than 300 properties in Philadelphia and operated a real estate business out of 2332 E. Allegheny Avenue. Among his business entities were Landvest, LLP, Alivest, LLP, and Otay, LLC, to name a few. Through those business entities, Coyle borrowed more than $3 million from East River Bank (“ERB”) and more than $6.6 million from Republic First Bank (“RFB”). Polonia Bank was a 49% participant in the ERB loans after settlement. The purpose of the loans was purportedly to refinance existing loans, make improvements on some of the properties Coyle owned, and/or to allow Coyle to pursue other real estate opportunities. Coyle pledged approximately 71 properties to secure the ERB loans and approximately 117 other properties to secure the RFB loan. The banks anticipated that the loans would be repaid through rental income that Coyle was collecting and, if necessary, through the sale of the collateral properties. But Coyle had entered into various ownership agreements, including rent-to-own, with the occupants of several of the properties and he, therefore, did not hold good title for all of the properties he pledged. The loans that were submitted totaled more than $10 million.
In addition to the prison term, U.S. District Court Judge Stewart Dalzell ordered restitution in the amount of $6,480,302.65, five years of supervised release, a $200 special assessment, and a forfeiture money judgment of $10,106,200. The restitution amount includes individuals who had entered into rent-to-own, house swap, or similar ownership agreements with the defendant, or any entity controlled by the defendant, for properties that were pledged as collateral.The case was investigated by the Federal Bureau of Investigation and the Economic and Cyber Crimes Unit of the Philadelphia District Attorney’s Office. It was prosecuted by Assistant United States Attorney Mary Kay Costello.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525More Terrorism Sentences Imposed in Federal CourtRead the Press Release
MINNEAPOLIS—Earlier today in federal court, two Rochester, Minnesota, women were sentenced for providing material support to al-Shabaab, a U.S.-designated foreign terrorist organization. United States District Court Chief Judge Michael J. Davis sentenced Amina Farah Ali, age 36, to 240 months in federal prison, followed by supervised release for life, on one count of conspiracy to provide material support to a Foreign Terrorist Organization al-Shabaab and twelve counts of providing material support to al-Shabaab. Chief Judge Davis also sentenced Hawo Mohamed Hassan, age 66, to 120 months in federal prison, followed by supervised release for life, on one count of conspiracy to provide material support to a terroristic organization and two counts of making false statements to authorities. Both women, who are naturalized U.S. citizens from Somalia, were indicted on July 6, 2010, and were convicted on October 20, 2011. They were remanded into custody following sentencing.
After court, John Carlin, Acting Assistant Attorney General for National Security, said, “Today’s sentences and those handed down earlier this week in Minneapolis underscore our commitment to dismantle networks that route funding and fighters from the United States to the al-Shabaab terror organization. These cases are the result of an extraordinary, long-term effort by many agents, analysts, and prosecutors, who worked tirelessly to ensure that the defendants were brought to justice.”
U.S. Attorney B. Todd Jones added, “Today’s sentencings illustrate yet again the high priority this office has placed on national security cases. Terrorist groups, such as al-Shabaab, threaten the safety of Americans, both abroad and here at home. These two defendants provided financial support to this U.S.-designated terrorist organization and then impeded the federal investigation into that matter by lying to authorities. This misguided conduct is unacceptable. With the assistance of our investigative partners, it will continue to be prosecuted vigorously, as was done in this case.”
Evidence presented at their trial proved that the defendants provided support to al-Shabaab from September 17, 2008, through July 19, 2009. Specifically, Ali communicated by telephone with Somalia-based members of al-Shabaab who requested financial assistance on behalf of the group. Ali, Hassan, and others raised money for the terrorist organization by soliciting funds door-to-door in Somali neighborhoods in Minneapolis, Rochester, and other cities in the U.S. as well as in Canada. Ali often sought the money under false pretenses, contending that it was to help the poor. The defendants also obtained funds by participating in teleconferences that featured speakers who encouraged listeners to make donations in support of al-Shabaab.
For example, on October 26, 2008, Ali hosted a teleconference during which an unindicted co-conspirator told listeners that rather than helping the poor and needy in Somalia, they should give to the mujahidin. Ali and Hassan recorded $2,100 in pledges at the conclusion of that teleconference. Then, on February 10, 2009, Ali conducted a fundraising teleconference during which she told listeners to “forget about the other charities” and focus on “the jihad.”
J. Chris Warrener, Special Agent in Charge of the Federal Bureau of Investigation’s Minneapolis Field Office, which leads the Minnesota Joint Terrorism Task Force, the primary investigative entity in this case, said, “The sentencings today are a culmination of the efforts of the FBI’s Joint Terrorism Task Force and its commitment to stop terrorist-related activities in Minnesota. The FBI is pleased with the sentences that were handed down and will work with the community to deter others from engaging in this type of activity.”
Upon garnering funds, Ali and others transferred them to al-Shabaab through various money remittance companies. Ali and others used false names to identify the money’s recipients in an effort to conceal that the money was being provided to al-Shabaab. Ali directed no fewer than twelve money transfers to al-Shabaab.
On July 14, 2009, the day after the FBI executed a search warrant at Ali’s home, she telephoned her primary al-Shabaab contact, saying, “I was questioned by the enemy here . . . they took all my stuff and are investigating it . . . do not accept calls from anyone.”
As for Hassan, she made at least two false statements when questioned by federal agents about international terrorism.This case was the result of an investigation by the FBI’s Joint Terrorism Task Force. It was prosecuted by Assistant U.S. Attorney Jeffrey S. Paulsen and Steven Ward of the Counterterrorism Section of the Justice Department’s National Security Division.
***Earlier today, Chief Judge Davis sentenced Adarus Abdulle Ali, age 29, of Columbia Heights, to 24 months in federal prison, followed by 36 months of supervised release, for making false statements while testifying before a federal grand jury in regards to a federal investigation known as “Operation Rhino.” That investigation focused on the disappearance of approximately 20 young, ethnic Somali men from the Twin Cities area during the past six years. The young men were recruited to fight against Ethiopian troops and Somalia’s internationally recognized Transitional Federal Government and later joined al-Shabaab. Ali was sentenced today on one count of perjury after being charged with that crime on October 27, 2009, and pleading guilty on November 2, 2009.
In his plea agreement, Ali admitted that on December 17, 2008, he testified to a federal grand jury that he did not know anyone who had traveled to Somalia with Kamal Said Hassan, who was sentenced earlier this week, when, in truth, Ali attended a meeting during which Hassan and others discussed going to Somalia to fight for al-Shabaab. In fact, Ali later admitted that he had driven Hassan and another individual to the Minneapolis-St. Paul International Airport for their flights to Somalia.
On Monday of this week, Chief Judge Davis sentenced Hassan, age 28, of Minneapolis, to 120 months in federal prison, followed by 20 years of supervised release, after he pleaded guilty to providing material support to the Foreign Terrorist Organization al-Shabaab and to a conspiracy to kill Ethiopian soldiers. He was charged with those crimes on February 18, 2009. Specifically, Hassan had traveled to Somalia, graduated from an al-Shabaab training camp, and participated in an al-Shabaab ambush of Ethiopian soldiers. On August 12, 2009, he was also charged with and later pleaded guilty to making false statements to the FBI. Those charges were based on the fact that Hassan lied to FBI agents about his continued involvement with al-Shabaab after completing his training in the al-Shabaab camp. (See Monday’s press release for more details.)
Through its investigation, federal authorities learned that groups of men first departed the United States to fight with al-Shabaab in Somalia in October and December of 2007, with others leaving in February 2008, August 2008, September 2008, November 2008, and October 2009. Upon arriving in Somalia, the men resided in al-Shabaab safe houses in Southern Somalia until constructing an al-Shabaab training camp, where they were trained from that point on. Senior members of al-Shabaab and a senior member of al-Qaeda in East Africa conducted those trainings.
In July 2008, men from Minneapolis as well as other Americans participated in an al-Shabaab ambush of Ethiopian troops. On October 29, 2008, one of those men, Shirwa Ahmed, who left Minneapolis in December 2007, detonated a vehicle-borne improvised explosive device as one of five coordinated suicide bombings in Bosaso and Hargeisa, Somalia. Ahmed is believed to have become the first American suicide bomber in Somalia. On May 30, 2011, Farah Mohamed Beledi, an indicted individual who departed Minnesota in October 2009, was killed at a checkpoint in Somalia as he attempted to detonate his suicide vest. To date, approximately 18 individuals have been charged through Operation Rhino, and eight have been convicted. The remaining ten are believed to be fugitives or have been killed in Somalia.
On Monday, Chief Judge Davis also sentenced Mahamud Said Omar, also known as Sharif Omar, age 46, of Minneapolis, to 240 months in federal prison, followed by life-long supervised release for conspiring to provide material support to a Foreign Terrorist Organization and conspiring to kill, kidnap, maim, and injure overseas. He was arrested in Netherlands in November of 2009 and extradited to the U.S. in August of 2011. In October of 2012, he was tried and convicted of these crimes. (See Monday’s press release for more details.)
On Tuesday of this week, Chief Judge Davis sentenced Omer Abdi Mohamed, age 28, of Minneapolis, to 144 months in federal prison, followed by 20 years of supervised release, after earlier pleading guilty to one count of conspiracy to provide material support to co-conspirators who intended to kill, kidnap, and main Ethiopian and Somali government troops. Abdifatah Yusuf Isse, Salah Osman Ahmed, and Ahmed Hussein Mahamud were each sentenced to 36 months in federal prison, followed by 20 years of supervised release, after earlier pleading guilty to related charges. Isse, Ahmed, and Mahamud cooperated with the United States and testified at the trial of Mahamud Said Omar. (For more details, see Tuesday’s press release.)
This case resulted from a long-term investigation conducted by the FBI’s Minneapolis Joint Terrorism Task Force. The case was prosecuted by Assistant U.S. Attorneys Charles J. Kovats, John Docherty, and LeeAnn K. Bell, and William M. Narus of the Counterterrorism Section of the U.S. Department of Justice’s National Security Division.Michigan Businessman Pleads Guilty to Bank Fraud and Obstructing the Internal Revenue ServiceRead the Press Release
Mosii Mays Blackwell, of Detroit, Mich., pleaded guilty in the Eastern District of Michigan to obstructing the Internal Revenue Service (IRS) and bank fraud, the Justice Department and the IRS announced today.
According to the information and other documents filed in court, from April 2004 to December 2012, Blackwell failed to report to the IRS over $4.5 million in gross receipts generated by Detroit area businesses that he operated and controlled through various entities, such as the Detroit Manufacturing Group, Moci Jeans, Arzel Corp., Renaissance Contractors and Greentree Entertainment Group, LLC.
In addition, the information states that on November 5, 2004, Blackwell executed a bank fraud scheme by causing a loan application to be submitted to mortgage lender that falsely reported the applicant was employed by one of his business entities at a salary of $18,000 each month.
Blackwell faces a maximum potential sentence of 33 years in prison and a fine of up to $1,250,000.
Kathryn Keneally, Assistant Attorney General of the Justice Department’s Tax Division, thanked Special Agents of IRS – Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Mark McDonald and Christopher O’Donnell for prosecuting the case.Michael Larrieu Indicted for Failure to Register as Sex OffenderRead the Press Release
MICHAEL LARRIEU, age 25, a resident of New Orleans, Louisiana, was charged in an indictment by a Federal Grand Jury for failure to register as a sex offender, announced U. S. Attorney Dana J. Boente.
According to documents filed in federal court, in 2007, LARRIEU pled guilty to possession of child pornography in U. S. District Court, Eastern District of Louisiana. LARRIEU was sentenced to forty (40) months imprisonment to be followed by a life time supervised release term. As a result of LARRIEU’s conviction, he was required to register pursuant to the Sex Offender Registration and Notification Act.
Today’s indictment alleges that between February 27, 2013 and March 25, 2013, LARRIEU failed to comply with his sex offender registration requirements.
If convicted of the failure to register charge, LARRIEU faces a maximum term of imprisonment of ten (10) years, a fine of $250,000 and up to three (3) years of supervised release.
U. S. Attorney Boente reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
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 United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to 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.gove/psc. For more information about internet safety, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the United States Marshals and prosecution of this case is being handled by Project Safe Childhood Coordinator, Assistant U. S. Attorney Brian M. Klebba.
(Download Indictment )
Michael J. Hebert Pleads Guilty to Receiving and Possessing an Unregistered FirearmRead the Press Release
MICHAEL J. HEBERT, age 62, a resident of Houma, Louisiana, pled guilty in federal court today before U. S. District Judge Eldon E. Fallon to receiving and possessing an unregistered firearm, announced U. S. Attorney Dana J. Boente.
According to court documents, HEBERT possessed a firearm, to wit: a Stag Arms Model Stag-15, .223 caliber semi-automatic rifle, serial no. 00229 having a barrel of less than 16 inches in length, not registered to him in the National Firearms Registration and Transfer Record.
HEBERT faces a maximum term of imprisonment of ten (10) years, a fine of $250,000 and three (3) years of supervised release following any term of imprisonment. Sentencing is scheduled for August 22, 2013.
The case was investigated by the United States Secret Service- New Orleans Field Division, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Terrebonne Parish Sheriff’s Office. The case is being prosecuted by Assistant U. S. Attorney Loan “Mimi” Nguyen.
(Download Factual Basis )
Mexican Citizen Encountered in Cumberland County Indicted for Illegal ReentryRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigrations and Customs Enforcement, announced that a
34-year-old native and citizen of Mexico has been charged with illegal reentry into the United States.According to United States Attorney Peter J. Smith, Patricio Pedraza-Montes, age 34, a native and citizen of Mexico, in the United States illegally was charged in a one-count indictment by a federal grand jury in Harrisburg Wednesday.
The indictment alleges that Pedraza-Montes, an alien who has previously been arrested, and deported from the United States on August 5, 2003, did knowingly and unlawfully reenter the United States and was apprehended in Cumberland County, Pennsylvania.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement and is being prosecuted by Special Assistant United States Attorney Alice Song Hartye.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is two years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Member of Marijuana Trafficking Organization Sentenced to 20 Years in Prison for Murder in Aid of RacketeeringRead the Press Release
Drug Courier Kidnapped and Dismembered in Bathtub
Baltimore, Maryland - U.S. District Judge William D. Quarles sentenced Hubert Downer, a/k/a “Doc, age 52, of Jamaica, today to 20 years in prison followed by three years of supervised release for murder in aid of racketeering.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and Anne Arundel County Police Chief Larry W. Tolliver, Sr.
“Today’s sentence of Hubert Downer for murder in aid of racketeering is the culmination of a long-term investigation for HSI special agents, who since 2009 have been investigating the Jean Brown drug trafficking organization, which spanned five states and three countries,” said William Winter, special agent in charge of HSI Baltimore. “HSI special agents have seized approximately 100 pounds of marijuana, $853,000 in cash and bank accounts and six firearms from these co-conspirators, who used intimidation and violence to further their criminal activities. HSI will continue working with our law enforcement partners to investigate and ultimately dismantle criminal organizations that are wreaking violence in our communities through the illicit drug trade.”
According to his plea agreement and court documents, Jean Brown and Carl Smith led a drug organization that obtained marijuana in Arizona and California and used trucking companies that Brown owned and operated to transport the marijuana to Maryland, Pennsylvania and New York on a monthly basis. Downer helped distribute the marijuana for Brown. The conspirators transported as much as 1,000 pounds of marijuana per month from 2000 until Brown’s arrest in 2010.
On December 16, 2009, Jean Brown and Carl Smith met with Michael Knight, another member of the organization, in Maryland. Knight was holding approximately $1,000,000 in drug proceeds for Brown, but when they came to collect the money, approximately $250,000 was missing.
Brown, Smith and Dean Myrie took Knight, bound with a telephone cable, to an apartment in White Marsh, Maryland. Brown assaulted and interrogated Knight. Subsequently, Brown and Smith got Downer and Peter Blake, another member of the drug organization, to help torture Knight to reveal the location of the money. When Knight did not provide the location of the money, Brown ordered Downer and Blake to kill Knight. Downer and Blake took a large knife into the bathroom where Knight was being held and Blake stabbed him to death in the bathtub with Downer’s help.
Over the next several days, Downer, Brown and Blake cut off Knight’s legs with a power saw and disposed of them in a dumpster. Downer, Blake and Myrie put the remainder of Knight’s body in a large cardboard box and disposed of it in another dumpster.
Jean Brown, age 43, of Jamaica, was convicted by a federal jury at trial of the drug conspiracy, kidnapping and murder in aid of racketeering, and conspiracy to commit murder in aid of racketeering. Judge Quarles sentenced Brown to life in prison. Dean Myrie, a/k/a “Journey,” age 39, of Jamaica, pleaded guilty to kidnapping in aid of racketeering and was sentenced to 108 months in prison. Michael Reid, age 51, and Peter Blake, age 55, both of Jamaica, have also pleaded guilty to their roles in the conspiracy and are awaiting sentencing. Carl Smith was killed in 2010.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, the Baltimore County Police Department Homicide/Missing Persons Unit and the Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Stefan D. Cassella and Peter M. Nothstein, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Member of Marijuana Trafficking Organization Sentenced to 20 Years in Prison for Murder in Aid of RacketeeringRead the Press Release
Baltimore, Maryland - U.S. District Judge William D. Quarles sentenced Hubert Downer, a/k/a “Doc, age 52, of Jamaica, today to 20 years in prison followed by three years of supervised release for murder in aid of racketeering.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and Anne Arundel County Police Chief Larry W. Tolliver, Sr.
“Today’s sentence of Hubert Downer for murder in aid of racketeering is the culmination of a long-term investigation for HSI special agents, who since 2009 have been investigating the Jean Brown drug trafficking organization, which spanned five states and three countries,” said William Winter, special agent in charge of HSI Baltimore. “HSI special agents have seized approximately 100 pounds of marijuana, $853,000 in cash and bank accounts and six firearms from these co-conspirators, who used intimidation and violence to further their criminal activities. HSI will continue working with our law enforcement partners to investigate and ultimately dismantle criminal organizations that are wreaking violence in our communities through the illicit drug trade.”
According to his plea agreement and court documents, Jean Brown and Carl Smith led a drug organization that obtained marijuana in Arizona and California and used trucking companies that Brown owned and operated to transport the marijuana to Maryland, Pennsylvania and New York on a monthly basis. Downer helped distribute the marijuana for Brown. The conspirators transported as much as 1,000 pounds of marijuana per month from 2000 until Brown’s arrest in 2010.
On December 16, 2009, Jean Brown and Carl Smith met with Michael Knight, another member of the organization, in Maryland. Knight was holding approximately $1,000,000 in drug proceeds for Brown, but when they came to collect the money, approximately $250,000 was missing.
Brown, Smith and Dean Myrie took Knight, bound with a telephone cable, to an apartment in White Marsh, Maryland. Brown assaulted and interrogated Knight. Subsequently, Brown and Smith got Downer and Peter Blake, another member of the drug organization, to help torture Knight to reveal the location of the money. When Knight did not provide the location of the money, Brown ordered Downer and Blake to kill Knight. Downer and Blake took a large knife into the bathroom where Knight was being held and Blake stabbed him to death in the bathtub with Downer’s help.
Over the next several days, Downer, Brown and Blake cut off Knight’s legs with a power saw and disposed of them in a dumpster. Downer, Blake and Myrie put the remainder of Knight’s body in a large cardboard box and disposed of it in another dumpster.
Jean Brown, age 43, of Jamaica, was convicted by a federal jury at trial of the drug conspiracy, kidnapping and murder in aid of racketeering, and conspiracy to commit murder in aid of racketeering. Judge Quarles sentenced Brown to life in prison. Dean Myrie, a/k/a “Journey,” age 39, of Jamaica, pleaded guilty to kidnapping in aid of racketeering and was sentenced to 108 months in prison. Michael Reid, age 51, and Peter Blake, age 55, both of Jamaica, have also pleaded guilty to their roles in the conspiracy and are awaiting sentencing. Carl Smith was killed in 2010.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, the Baltimore County Police Department Homicide/Missing Persons Unit and the Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Stefan D. Cassella and Peter M. Nothstein, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Member of Marijuana Trafficking Organization Sentenced to 20 Years in Prison for Murder in Aid of RacketeeringRead the Press Release
Drug Courier Kidnapped and Dismembered in Bathtub
Baltimore, Maryland - U.S. District Judge William D. Quarles sentenced Hubert Downer, a/k/a “Doc, age 52, of Jamaica, today to 20 years in prison followed by three years of supervised release for murder in aid of racketeering.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and Anne Arundel County Police Chief Larry W. Tolliver, Sr.
“Today’s sentence of Hubert Downer for murder in aid of racketeering is the culmination of a long-term investigation for HSI special agents, who since 2009 have been investigating the Jean Brown drug trafficking organization, which spanned five states and three countries,” said William Winter, special agent in charge of HSI Baltimore. “HSI special agents have seized approximately 100 pounds of marijuana, $853,000 in cash and bank accounts and six firearms from these co-conspirators, who used intimidation and violence to further their criminal activities. HSI will continue working with our law enforcement partners to investigate and ultimately dismantle criminal organizations that are wreaking violence in our communities through the illicit drug trade.”
According to his plea agreement and court documents, Jean Brown and Carl Smith led a drug organization that obtained marijuana in Arizona and California and used trucking companies that Brown owned and operated to transport the marijuana to Maryland, Pennsylvania and New York on a monthly basis. Downer helped distribute the marijuana for Brown. The conspirators transported as much as 1,000 pounds of marijuana per month from 2000 until Brown’s arrest in 2010.
On December 16, 2009, Jean Brown and Carl Smith met with Michael Knight, another member of the organization, in Maryland. Knight was holding approximately $1,000,000 in drug proceeds for Brown, but when they came to collect the money, approximately $250,000 was missing.
Brown, Smith and Dean Myrie took Knight, bound with a telephone cable, to an apartment in White Marsh, Maryland. Brown assaulted and interrogated Knight. Subsequently, Brown and Smith got Downer and Peter Blake, another member of the drug organization, to help torture Knight to reveal the location of the money. When Knight did not provide the location of the money, Brown ordered Downer and Blake to kill Knight. Downer and Blake took a large knife into the bathroom where Knight was being held and Blake stabbed him to death in the bathtub with Downer’s help.
Over the next several days, Downer, Brown and Blake cut off Knight’s legs with a power saw and disposed of them in a dumpster. Downer, Blake and Myrie put the remainder of Knight’s body in a large cardboard box and disposed of it in another dumpster.
Jean Brown, age 43, of Jamaica, was convicted by a federal jury at trial of the drug conspiracy, kidnapping and murder in aid of racketeering, and conspiracy to commit murder in aid of racketeering. Judge Quarles sentenced Brown to life in prison. Dean Myrie, a/k/a “Journey,” age 39, of Jamaica, pleaded guilty to kidnapping in aid of racketeering and was sentenced to 108 months in prison. Michael Reid, age 51, and Peter Blake, age 55, both of Jamaica, have also pleaded guilty to their roles in the conspiracy and are awaiting sentencing. Carl Smith was killed in 2010.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, the Baltimore County Police Department Homicide/Missing Persons Unit and the Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Stefan D. Cassella and Peter M. Nothstein, who prosecuted this Organized Crime Drug Enforcement Task Force case.
McLaughlin Man Sentenced on Manslaughter ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota man convicted of Manslaughter was sentenced on May 13, 2013 by U.S. District Judge Charles B. Kornmann.
Jody Charles Red Bird, age 33, was sentenced to 18 months of imprisonment, 3 years of supervised release, restitution in the amount of $6,265.16 and a $100 special assessment to the Federal Crime Victims Fund.
Red Bird was indicted for by a federal grand jury in July of 2012. He pled guilty to the Indictment on January 2, 2013. The conviction stems from an incident on or about June 12, 2012 when the Defendant and others were drinking alcohol at Timber Lake and eventually decided to travel to McLaughlin.
Red Bird was driving the vehicle and while enroute to McLaughlin, he lost control of the vehicle and slid into the ditch abutting the opposing lane of traffic. The vehicle rolled several times and both Red Bird and the victim were ejected. As a result of the injuries sustained in the accident, the victim died.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Red Bird was immediately turned over to the custody of the U.S. Marshal.
McLaughlin Man Sentenced for Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota man convicted of Assaulting a Federal Officer was sentenced on May 13, 2013 by U.S. District Judge Charles B. Kornmann.
Ronnie White Mountain, age 44, was sentenced to 18 months’ imprisonment, 1 year of supervised release and a $100 special assessment to the Federal Crime Victims Fund.
White Mountain was indicted for by a federal grand jury in June of 2012. He pled guilty to a Superseding Information on October 15, 2012. The conviction stems from an incident on February 1, 2012 near McLaughlin when a federal law enforcement officer observed White Mountain driving in an erratic manner. The officer followed White Mountain for a period of time, and ultimately activated his lights when the Defendant pulled into a private residence.
The officer made an attempt to determine if White Mountain was under the influence of alcohol but the Defendant refused to comply. When the officer attempted to arrest White Mountain, he became combative and the officer used his Taser. White Mountain removed the leads and charged into the officer.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
White Mountain was immediately turned over to the custody of the U.S. Marshal.
Mascoutah Man Charged with Bank RobberyRead the Press Release
A Mascoutah man, Michael W. Dawson, 33, was charged in federal court in East St. Louis, in a Criminal Complaint with Bank Robbery, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The alleged violation took place on May 15, 2013, in Washington County, Illinois.
The offense charged in the Complaint alleges that on or about May 15, 2013, Dawson by force, violence, and intimidation, did take from the person or presence of another, money belonging to and in the care, custody, control, management, and possession of the First National Bank of Okawville.
Bank Robbery carries a potential term of not more than 20 years in prison, a fine up to $250,000, or both, and a supervised release term of five years.
A criminal complaint is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The information contained in the complaint was obtained through an investigation conducted by the Federal Bureau of Investigation and the Okawville Police Department. The case is being prosecuted by United States Attorney Stephen R. Wigginton and Assistant United States Attorney Deirdre A. Durborow.
Marion Prison Inmate Charged with EscapeRead the Press Release
David John Pederson, 55, an inmate at the Federal Prison Camp at Marion, Illinois, appeared today for arraignment in United States District Court in Benton on charges that he escaped from the custody of the Federal Bureau of Prisons, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. Pederson was charged by a Federal Grand Jury on May 9th with leaving the extended limits of his confinement while on an unescorted transfer from FPC-Marion to a half-way house in Council Bluff, Iowa. This conduct, under Federal law, is deemed an escape. The indictment alleged that the offense occurred on March 26, 2013, in Jefferson County.
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.
At the time of the escape, Pederson was serving a 71 month sentence from the Southern District of Iowa for bank robbery. If convicted of the escape offense, Pederson faces up to an additional 5 years’ imprisonment, a $250,000 fine, and 3 years of supervised release to follow his incarceration.
Following his arraignment, Pederson was ordered held without bond and was returned to the custody of the Illinois Department of Corrections, where he is serving a 20 year sentence for aggravated vehicular hijacking, to await further proceedings.
The case was investigated by the United States Marshal’s Service with the assistance of the Mt. Vernon Police Department and the Federal Bureau of Prisons.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Lottery Winner Loses Freedom, Sentenced to Prison for Evading TaxesRead the Press Release
PITTSBURGH - A resident of Fayette County has been sentenced in federal court to a year and a day of incarceration, a $3,000 fine, and full restitution of $132,445 on his conviction of tax evasion, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Sherman W. Friend, of McClellandtown, Pa.
According to the information provided to the court, Friend, while driving his vehicle in southwestern Pennsylvania in December of 2009, happened to notice that a truck passed him at 11:27 a.m., and then noticed that another truck passed him that had "7211" on it. With $60 in cash in his pocket, he drove to West Virginia and hit for $1,600 on a slot machine. He decided that when he returned to Pennsylvania, he would play that number again. But how would he play that number? The answer came from a vow he made two years earlier in 2007, when Friend won yet another game of chance. In 2007 he entered a raffle sponsored by a Maryland fire department and won a new PT Cruiser convertible. From that raffle win he owed the IRS $8,000, but had to be chased to pay. When he finally settled with the IRS for $3,000, he vowed to never pay taxes on winnings again. So when Friend returned from West Virginia to play 1127, he purchased 208 fifty-cent lottery tickets, all betting on his new lucky number. It hit and he instantly won $520,000. Instead of simply claiming his winnings, Friend made good on his vow not to pay the IRS by not personally cashing in any of the 208 tickets. Instead he used about 40 people, most of whom were unemployed and destitute, to present the winning tickets for payment. He accompanied them to the lottery stations, waited outside and then paid most of them a fee of $250 per ticket. Many of these individuals, whose names were on record with the Pennsylvania Lottery as having received the lottery winnings, were later taxed in spite of having been told by Friend that they would suffer no consequences from "helping" him. Some of tickets were cashed in 2009 and the bulk of them were cashed in 2010. In 2009 Friend had $101,818 in income and owed $22,229 in taxes. In 2010 he had $378,779 in income and owed $110,216 in taxes.
Judge Schwab stated that even though Friend was 71 years-old and had health issues, his "criminal activity impacted others, and the sentence reflects the need for every citizen to pay their income taxes." Judge Schwab also stated that he had intended to fine Friend $30,000, but because Friend presented to the court at the sentencing hearing $93,981 in restitution, the fine imposed was $3000.
Assistant United States Attorney Nelson P. Cohen prosecuted this case on behalf of the government.
The Internal Revenue Service, Criminal Investigation conducted the investigation that led to the prosecution of Sherman W. Friend.
Local Middle School Teacher Pleads Guilty to Receipt and Possession of Child PornographyRead the Press Release
United States Attorney Laura E. Duffy announced today that Timothy James Hensley, a local middle school teacher at Bell Middle School, pled guilty today in federal court in San Diego to a five count indictment charging him with receipt and possession of child pornography. Hensley entered his guilty plea before United States Magistrate Judge Bernard G. Skomal, subject to final acceptance of the plea by United States District Court Judge Irma E. Gonzalez, at or before the time of sentencing.
As part of his guilty plea, Hensley admitted to receiving images of a minor female approximately 10 years of age engaged in sexually explicit conduct as well as to possessing an IMac computer and computer disks containing images depicting minors engaged in sexually explicit conduct, in violation of Title 18, United States Code, Section 2252(a)(2) and (4)(B). According to court records, several of these images depicted prepubescent minors engaged in sexually explicit conduct. The defendant was arrested by special agents with Homeland Security Investigations on January 15, 2013, following the execution of a federal search warrant at Hensley’s residence.
Hensley is scheduled to appear for sentencing before Judge Gonzalez on August 12, 2013, at 9:00 a.m.
This case stems from an investigation by the Department of Homeland Security, Immigration and Customs Enforcement's Homeland Security Investigations.
This case was brought as part of the Department of Justice’s Project Safe Childhood, and ICE's Operation Predator, both are nationwide initiatives launched to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources." For more information about on Operation Predator, please visit www.ice.gov
DEFENDANT Criminal Case No. 13cr0393-IEG Timothy James Hensley SUMMARY OF CHARGESThree Counts: Title 18, United States Code, Section 2252(a)(2) (Receipt of Child Pornography) Maximum Penalties: Mandatory minimum 5 years’ incarceration to 20 years per count, mandatory minimum of 5 years’ incarceration, $250,000 fine, a minimum of 5 years and up to a lifetime of supervised release and registration as a sex offender
Two Counts: Title 18, United States Code, Section 2252(a)(4)(B) - Possession of Child Pornography Maximum penalties: 20 years in prison; a $250,000 fine; and a minimum of 5 years and up to a lifetime of supervised release and registration as a sex offender.
INVESTIGATING AGENCYImmigration and Customs Enforcement’s Homeland Security Investigations
Las Vegas Attorney Pleads Guilty to Mortgage Fraud CrimesRead the Press Release
LAS VEGAS, Nev. – Las Vegas attorney Stanley A. Walton, 54, has pleaded guilty to a charge brought against him in February 2011 that he participated in a scheme to obtain mortgage loans from financial institutions using straw buyers and false loan applications, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Walton pleaded guilty on Wed., May 15, 2013, to one count of conspiracy to commit bank, mail and wire fraud, and is scheduled to be sentenced by U.S. District Judge James C. Mahan on Aug. 20, 2013, at 10:00 a.m. Walton faces up to 30 years in prison and a $1 million fine, and has agreed to the forfeiture of $750,000 in money or property in addition to restitution.
According to the guilty plea memorandum, from about Sept. 22, 2004, through July 24, 2007, Walton conspired with others to fraudulently obtain residential mortgages in order to obtain proceeds from the mortgages for their personal use. Walton recruited straw buyers to purchase homes, while Walton intended to control the ownership interests of the homes, obtain proceeds from the mortgage loans for his own use, and later resell the house for a profit. Walton advised the straw buyers that he would use their names and credit to purchase the homes, and would split the profits with them when the homes were re-sold. Walton held himself out to the straw buyers as an attorney with knowledge and skill in these types of transactions, and intentionally did not disclose this plan or activity to the financial institution lenders. Walton made false statements in and caused co-schemers to make false statements in the straw buyers’ loan applications and supporting documents concerning the straw buyers’ income, assets, intent to occupy the homes, and other information. Walton also directed straw buyers to take steps to make it appear they intended to occupy the homes, such as placing utilities in their names. Walton caused loan proceeds to be paid to him by falsely claiming them as attorney’s fees, fraudulently diverting them through real estate agents, and fraudulently having payments made to his company, knowing that this information would be concealed from the lenders.
Walton and the co-schemers fraudulently purchased six homes in Henderson and three homes in Las Vegas. Walton admitted in his plea agreement that the loss caused by his criminal conduct was approximately $3.6 million.
Pamela Black, 65, a mortgage loan officer, also pleaded guilty to one count of conspiracy to commit bank, mail and wire fraud, and was sentenced on July 26, 2012, to time served, three years of supervised release, and ordered to pay approximately $1.2 million in restitution.
The investigation was conducted by the FBI, and the case is being prosecuted by Assistant U.S. Attorneys Daniel R. Schiess and Kathryn C. Newman.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Laredo Downtown Merchant Admits GuiltRead the Press Release
LAREDO, Texas – Ji Hui Chen, 43, a merchant in downtown Laredo, has pleaded guilty to trafficking in counterfeit goods, United States Attorney Kenneth Magidson announced today along with Vincent Iglio, acting special agent in charge of Homeland Security Investigations (HSI).
Chen, a U.S. legal permanent resident who was born in Taiwan, is the owner of J Design located in downtown Laredo.
HSI special agents met with Chen and conducted undercover buys of counterfeits goods at Chen’s place of business. Approximately 5,722 counterfeit items of numerous styles and brands of handbags, wallets, hats, sunglasses, shirts and luggage, all of which were counterfeit, were seized over the course of the investigation. Brands included Burberry, Cartier, Chanel, Chi, Coach, Dooney and Bourke, Gucci, Hermes, Jimmy Choo, Louis Vuitton, Michael Kors, Nike, Oakley, Polo, Prada, Rayban, Rolex, Tory Burch and Dolce & Gabanna.
“Intellectual property theft is not a victimless crime and should concern every American,” said Iglio. "Enforcing our nation's counterfeiting laws is about protecting our economy, while also shielding the unwitting consumer from sub-par and/or unsafe merchandise and upholding the intellectual property rights of those who play by the rules.”
At sentencing, to be set at a later date, Chen faces up to 10 years in federal prison as well as a $250,000 fine.
The case was investigated by HSI. Assistant U.S. Attorney Roel Canales is prosecuting the case.
Katrina Williamson Sentenced for Bank Fraud and Aggravated Identity TheftRead the Press Release
MOBILE, AL-- The United States Attorney, Kenyen R. Brown, announces that Katrina Duke Williamson was sentenced by United States District Court Judge Callie V. Granade today to 64 months confinement for embezzling almost $400,000.00 from a law firm in Foley, Alabama where she previously worked.
Williamson faced a two year mandatory minimum confinement sentence for the Aggravated Identity Theft violation under Title 18 USC §1028A, in which she plead guilty in November 2012. In addition, the advisory sentencing guidelines for the Bank Fraud offenses was 27 to 33 months, consecutive to the 2 year mandatory minimum on the Aggravated Identity Theft violation. However Judge Granade departed upward from the federal sentencing guidelines and imposed a sentence of 40 months on the Bank Fraud charges to run consecutive to the 2 year mandatory minimum on the Aggravated Identity Theft violation for a total of 64 months confinement. The Court also ordered Williamson to pay $396,699.47 to the victims of the fraud. The case was investigated by the Federal Bureau of Investigation.
Kaleb Deakle Guilty of Defrauding Car DealershipRead the Press Release
KALEB DEAKLE, age 24, a resident of Atlanta, Georgia, pled guilty today in federal court before U. S. District Court Judge Jane Triche Milazzo to wire fraud, announced U. S. Attorney Dana J. Boente.
According to court documents, DEAKLE previously resided in New Orleans and gained access to the bank account of the management company where he had leased a condominium. DEAKLE used his computer to negotiate the online sale of a 2012 Land Rover Sport. After a series of emails with the salesman, DEAKLE arrived at Land Rover of New Orleans on January 12, 2012, with a check purportedly from the management company. The check was counterfeit and written out for the total purchase price of $72,148.50. DEAKLE led the dealership to believe that he was employed by Apple, Inc., that the check was legitimate, and thereby was given possession of the vehicle.
The plea agreement reflected that $418,373.96 is the total attempted harm of the scheme, and will be used to calculate his sentence. DEAKLE is to pay full restitution in the amount of $132,093.83 which is the actual harm caused to all the victims of the scheme.
DEAKLE faces a maximum term of imprisonment of twenty years, as well as a fine of $250,000 and three years of supervised release following any term of imprisonment.
Sentencing is set for August 15, 2013 at 10:00 am.
The case was investigated by the Special Agents of the Federal Bureau of Investigation. The prosecution is being handled by Assistant United States Attorney Jon Maestri.
(Download Factual Basis )
Justice Department Reaches Fair Housing Settlementwith Design Professionals in Disability LawsuitRead the Press Release
The Justice Department today announced a settlement with the architects and civil engineers involved in the design and construction of multifamily housing complexes located in Mississippi, Louisiana and Tennessee. The department’s lawsuit alleges that nine multifamily housing complexes with more than 800 units covered by the Fair Housing Act’s accessibility requirements were designed and built without required accessible features. No settlement has been reached with the developer, builder or former owners of these properties, who are alleged to have violated not only the Fair Housing Act, but also the Americans with Disabilities Act.
Under the settlement, which was approved today by the U.S. District Court for the Southern District of Mississippi yesterday evening, nine architects and civil engineers will pay a total of $865,000 to make the complexes for which they were responsible accessible to persons with disabilities. They will also pay $60,000 to compensate aggrieved persons harmed by the inaccessible housing alleged in the government’s lawsuit. The settlement requires these defendants to undergo training on the Fair Housing Act and to provide periodic reports to the government.“Persons with disabilities are entitled to equal access to housing under the Fair Housing Act,” said Eric Halperin, Senior Counsel and Special Counsel for Fair Lending in the Civil Rights Division. “This settlement makes clear that the department takes seriously the accessibility requirements for multifamily housing.”
“The U.S. Attorney’s Office is committed to working with the Civil Rights Division to help ensure that those who design and construct housing units make them accessible to persons with disabilities in compliance with the Fair Housing Act and the Americans with Disabilities Act,” said Gregory K. Davis, U.S. Attorney for the Southern District of Mississippi.
The architects and civil engineers involved in this settlement are Stephen G. Hill, Pickering Firm Inc. a/k/a Pickering Inc.; Larry Singleton d/b/a Singleton Hollomon Architects, H D Lang And Associates Inc.; Richard A. Barron, Architect, Shows, Dearman & Waits Inc.; Canizaro Cawthon Davis f/k/a Canizaro Trigiani Architects; Evans-Graves Engineers Inc. and J.V. Burkes & Associates Inc.
The Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. Title III of the Americans with Disabilities Act requires, among other things, that public accommodations comply with specific requirements related to architectural standards to ensure accessible public and common use areas. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj. gov/crt . Individuals who believe that they may have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected] , or contact the U.S. Department of Housing and Urban Development at 1-800-669-9777.
Jury Convicts Two Harrisburg Men of Cocaine TraffickingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that two Harrisburg men were convicted by a federal jury for conspiracy and distribution of cocaine and crack cocaine.
According to United States Attorney Peter J. Smith, on May 8, following a two-day trial before Senior U.S. District Court Judge William Caldwell in Harrisburg, the jury returned a verdict of guilty on all counts against Dawan Maynard, age 41, and Michael Morris, age 46. A sentencing date has not been scheduled.
Following the verdict, the defendants filed a motion to correct the verdict and interview the jurors relating to the amount of drugs and when they were distributed. On Tuesday, May 14, Judge Caldwell denied the defendant’s motion.
Maynard, Morris and a third man, Corry Matthews, were indicted in October 2012 after a three-year investigation spearheaded by the Drug Enforcement Administration in conjunction with the Dauphin County Drug Task Force.
The evidence showed that the three defendants were involved in a violent drug trafficking enterprise from 2009 through 2012 in Dauphin County which distributed and possessed 500 grams of cocaine and crack cocaine. Maynard and his co-conspirators also used threats of violence and intimidation to acquire cocaine from other area drug traffickers.
Matthews pleaded guilty in January 2013 and is awaiting sentencing.
The case is part of an on-going coordinated effort by multiple law enforcement agencies including the Dauphin County Criminal Investigation Division, Middletown Bureau Police Department, Lower Paxton Township Police Department, the Harrisburg Bureau of Police, and the Pennsylvania State Police. The case is being prosecuted by Assistant United States Attorney Michael Consiglio.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is forty years imprisonment for the defendants and a term of supervised release following imprisonment and a fine. Each defendant also faces a mandatory minimum period of incarceration of five years.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
* * * *Jose Roberto Pacheco-alvarado Indicted for Illegal ReentryRead the Press Release
JOSE ROBERTO PACHECO-ALVARADO, age 23, a citizen of Honduras, was charged in a one-count indictment by a Federal Grand Jury today with illegal reentry by an alien previously removed, announced U.S. Attorney Dana J. Boente.
ccording to the indictment, on or about April 29, 2013, PACHECO, an alien who had previously been removed from the United States, was found in the United States, within the Eastern District of Louisiana, without having obtained consent from the Secretary of the Department of Homeland Security to reapply for admission to the United States.
f convicted, PACHECO, who was convicted of a felony prior to his previous removal, faces a maximum term of imprisonment of ten (10) years, a fine of $250,000 and three (3) years of supervised release following any term of imprisonment.
U. S. Attorney Boente reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by United States Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE). The prosecution is being handled by Special Assistant United States Attorney Robert Weir.
(Download Indictment )
Jose Gonzalez-grana, Pleads Guilty to Making A False Statement Claiming United States Citizenship and Illegal Use of A Social Security NumberRead the Press Release
JOSE GONZALEZ-GRANA, age 35, a citizen of Mexico, pled guilty in federal court today before U. S. District Judge Eldon E. Fallon to a two-count indictment charging him with making a false statement claiming United States citizenship and illegal use of a Social Security number, announced U. S. Attorney Dana Boente.
According to court documents, on May 3, 2012, GONZALEZ, an alien, knowingly made a false statement and claim that he was a United States citizen in order to unlawfully engage in employment in the United States. GONZALEZ has admitted to falsely representing that a Social Security number had been assigned to him by the Commissioner of Social Security with intent to deceive for the purpose of completing an Employment Eligibility Verification Form.
GONZALEZ faces a maximum term of imprisonment of ten (10) years, a fine of $500,000 and three (3) years of supervised release following any term of imprisonment.
This case was investigated by United States Immigration and Customs Enforcement, Homeland Security Investigations (ICE) as part of Operation Safe Neighborhood. The prosecution is being handled by Special Assistant United States Attorney Robert Weir.
(Download Factual Basis )
Jerard David Jo Threefingers Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on May 15, 2013, before U.S. District Judge Sam E. Haddon, JERARD DAVID JO THREEFINGERS, a 23-year-old resident of Lame Deer and an enrolled member of the Northern Cheyenne Tribe, pled guilty to involuntary manslaughter. Sentencing has been set for September 9, 2013.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On October 2, 2012, at approximately 12:30 p.m., law enforcement was advised of a one vehicle rollover crash on Crazy Head Springs Road near Lame Deer on the Northern Cheyenne Indian Reservation. The caller reported that one passenger was unconscious and another passenger was injured and needed medical help. Law enforcement arrived on the scene and found both a male and female lying on the ground. The female was deceased; the male was alive but injured. Law enforcement took photographs and collected evidence, including an empty Budweiser 30-pack container and 2 unopened cans of Budweiser.
After additional investigation, law enforcement learned that the vehicle, a Ford Explorer, was owned by the deceased female but they were unsure whether she had been driving the vehicle at the time of the crash. There were clear shoe impressions on the brake pedal and the driver's side door panel, but the deceased female was barefoot. Also, the driver's side seat was adjusted for someone much taller than the deceased female.
After some additional investigation, law enforcement learned that THREE FINGERS and another female had been in the car at the time of the crash but had walked away from the scene. Approximately two hours after the crash, THREE FINGERS was located by law enforcement and arrested on tribal charges of intoxication, DUI, and criminal homicide. THREE FINGERS was not interviewed until the next day because of his level of intoxication.
At first, THREE FINGERS identified the deceased female as the driver but, after further questioning, THREE FINGERS admitted that he was the driver. He admitted that he had been drinking prior to the crash and he explained that he hit a bump, lost control of the car, and caused the death of female and the injuries to the other passenger.
A toxicology screen of a blood sample taken from THREE FINGERS about three hours after the crash contained a blood alcohol content of .09.
The passenger that walked away from the scene with THREE FINGERS was interviewed and also admitted that THREE FINGERS was driving the vehicle at the time of the crash.
THREEFINGERS faces possible penalties of 8 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Ijaz Khan Sindhu Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on May 14, 2013, before U.S. District Judge Dana L. Christensen, IJAZ KHAN SINDHU, a 33-year-old resident of Othello Washington, was sentenced to a term of:
Prison: 60 months
Special Assessment: $100
Supervised Release: 4 years
SINDHU was sentenced in connection with his guilty plea to conspiracy to distribute cocaine.
In an Offer of Proof filed by Assistant U.S. Attorney Tara L. Elliott, the government stated it would have proved at trial the following:
On August 23, 2012, a Confidential Informant (CI) was scheduled to purchase cocaine from Shahid Khan and SINDHU in Missoula. Prior to arriving in Montana, Khan and SINDHU were stopped by Idaho police officers and it was later discovered that they had 10 ounces of cocaine in their car.
The CI would have testified that he purchased cocaine from SINDHU on numerous occasions between January and August of 2012, and usually purchased approximately 9 ounces of cocaine at a time. He would have further testified that Khan was with SINDHU on at least 4 or 5 of those occasions and at least once Khan took the money from the CI for the cocaine.
Khan pled guilty to federal charges.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that SINDHU will likely serve all of the time imposed by the court. In the federal system, SINDHU does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
INTERPOL Red Notice facilitates arrest of fugitive sex offender wanted in TexasRead the Press Release
WASHINGTON - INTERPOL Washington, the United States National Central Bureau (USNCB), announced the capture and return of Shilo Watts, 38, a United States citizen and resident of Atascosa County, Texas from Oman to the United States. Watts is wanted in Texas for charges of aggravated sexual assault of a minor, beginning when the minor was three years old and continuing over a prolonged period of time. In 2012, Watts fled the United States, resulting in the issuance of federal felony charge of unlawful flight to avoid prosecution.
In April, INTERPOL Washington expedited the publication of an INTERPOL Red Notice, or international wanted persons notice, for Watts based on the charges in Texas. The Red Notice was disseminated via INTERPOL's network to its 190 member countries around the world. Based on the efforts of investigators from the U.S. Marshals Service (USMS) International Investigations Branch, USMS Western District of Texas, and the U.S. Department of State Bureau of Diplomatic Security Service, Watts' was traced to Oman where the INTERPOL Red Notice provided police with the authority to arrest and lawfully return Watts to the United States on May 15. Watts is currently in the custody of U.S. authorities and faces a maximum sentence of life in prison.
INTERPOL Washington Director Shawn Bray stated, “The capture of Shilo Watts is a great example of partnership between foreign, federal, state, and local law enforcement authorities, including the U.S. Marshals Service, Diplomatic Security Service, Office of International Affairs at the U.S. Department of Justice, and INTERPOL Washington. Through the close coordination of these authorities paired with the use of INTERPOL's international resources, the U.S. Marshals Service and the Diplomatic Security Service located, arrested and returned Watts to face justice in Texas in a matter of days.”
Harvey Pleads Guilty in Two Federal Cases Involving Importation of Ephedrine into the United States and Actions to Introduce Misbranded Drug into CommerceRead the Press Release
Pleas Include 36-Month Sentencing Recommendation;Forfeiture of Assets
SALT LAKE CITY – Kelly Dean Harvey, age 50, of West Jordan, pleaded guilty to charges in two separate indictments in federal court Wednesday. Harvey was charged in one indictment in connection with efforts he made to introduce a misbranded drug into interstate commerce. The second case involved conspiracies to import ephedrine into the United States and launder money.
The plea agreements resolving both cases were executed during a hearing before U.S. Magistrate Judge Evelyn Furse. Each plea agreement includes a recommendation to the court that Harvey be sentenced to 36 months in federal prison and that the sentences run concurrently. As a part of the misbranded drug case, Harvey has agreed to forfeit funds from several financial accounts; an insurance policy; and two Roth IRA accounts.
Sentencing in the cases is set for Aug. 14, 2013, at 2:30 p.m. before U.S. District Judge David Nuffer.
The Ephedrine Case
Harvey pleaded guilty to one count of conspiracy to import and importation of ephedrine and one count of conspiracy to commit money laundering in the ephedrine case.
He admitted that between Aug. 1, 2007, and April 2011, he conspired with co-defendants Mashesh Kumar Bisht and Jorge Eduardo Campos to transport shipments containing ephedrine from India into the United States. He admitted knowing that the shipments he was arranging contained ephedrine and that the importation of ephedrine violated federal laws.He also admitted he worked with Bisht and Campos to transfer funds from the United States to India to pay for the ephedrine and that he conducted financial transactions in a way designed to conceal the nature, location, source, ownership and control of the funds, which were proceeds of an unlawful activity.
One of the co-defendants, Jorge Campos, has pleaded guilty and his sentencing is pending. The second co-defendant, Bisht, is in India and has not been arrested.
This case, which is being prosecuted by the U.S. Attorney’s Office, is being investigated by special agents of the U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations and IRS Criminal Investigation.
The Fraud/Misbranded Drug Case
Harvey admitted to conspiring with two others to manufacture and distribute male sexual enhancement and erectile dysfunction products (“ED drugs”) under false pretenses and with the intent to hide and conceal from the FDA the use of an active ingredient which was subject to FDA regulation. The ED drugs, distributed and marketed by Harvey, a Michigan distributor (an unindicted co-conspirator), and others contained a synthetic ingredient imported from China similar to sildenafil citrate, the active ingredient in Viagra. Harvey purchased the ingredient through a Chinese broker (an unindicted co-conspirator). As distributed and sold, the drugs were misbranded in the following respects: (1) they were identified as “dietary supplements,” which they were not; (2) they were identified as “100 % natural,” which they were not; and (3) they did not identify the active ingredient imported from China on labels or in instructions.Harvey pleaded guilty Wednesday to conspiracy, wire fraud, mail fraud and concealment money laundering in connection with this case and agreed to forfeiture totaling about $512,731.75.
This case is being prosecuted by the U.S. Attorney’s Office and investigated by special agents of FDA’s Office of Criminal Investigations.
Former West Texas Mayor Pleads Guilty to Stealing Money from the City of ToyahRead the Press Release
In Midland, 41–year-old Bartolo Sanchez, former mayor of Toyah, Texas, faces three years in federal prison as well as restitution after pleading guilty this morning to stealing approximately $100,000 from the city based on fraudulent mileage reimbursement claims and personal expenditures announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Mark Morgan.
Appearing before United States District Judge Robert A. Junell this morning, Sanchez pleaded guilty to one count each of wire fraud and aggravated identity theft. By pleading guilty, Sanchez admitted that on May 14, 2009, and unbeknownst to the Toyah City Council, Sanchez signed a $228,132.54 settlement agreement with Chesapeake Operating, Inc. for repairs of surface damage on Toyah streets caused by Chesapeake vehicles. Sanchez deposited that money into a new Toyah bank account that he created.
Furthermore, having signatory authority on all city bank accounts, Sanchez admittedly wrote checks to himself from various city bank accounts, including the one he created from the Chesapeake settlement, based predominantly upon fraudulent mileage reimbursement claims but also for various expenses, most of which were personal in nature and had little or nothing to do with official City business. So as to not raise the suspicions of City Council members as to his scheme, Sanchez forged a required second signature on all of the checks he issued to himself.
From May 2006 until December 2012, Sanchez served as the elected mayor of Toyah, a city located approximately 22 miles west of Pecos, Texas, comprising approximately 1.6 square miles and having a population of about 100 residents.
Sentencing for Sanchez has yet to be scheduled. He remains on bond pending sentencing.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Austin Berry is prosecuting this case on behalf of the Government.
Former Tax Preparers Sent to Federal Prison for Conspiracy to Defraud the U.s. TreasuryRead the Press Release
GRAND RAPIDS, MICHIGAN – Chad Anthony Chertos, 37, of Ada, Michigan, was sentenced to 30 months in prison and Gregory Edward VanDyke, 39, of Newaygo, Michigan, was sentenced to 63 months in prison, for conspiring to defraud the U.S. Treasury, U.S. Attorney Patrick Miles announced today. U.S. District Judge Robert J. Jonker also ordered both defendants to pay more than $240,000 in restitution to the U.S. Treasury.
Chertos and VanDyke were business partners and operated under the names “Integrity Tax” and “The Tax Guys.” Chertos and VanDyke admitted participating in a scheme to obtain payment of income tax refunds from the U.S. Department of the Treasury by preparing and filing false federal income tax returns on behalf of some of their clients. Many of those clients, who were told they could obtain significant tax refunds even if they earned little or no earned income, were solicited in a door-to-door sales pitch. In some cases, even if their clients actually earned income, the defendants ignored their clients’ true income information and prepared tax returns reflecting false and fraudulently-inflated income to obtain a substantial refund. Chertos and VanDyke profited in the scheme by taking substantial fees from the fraudulently-obtained refund checks.
At Van Dyke’s sentencing hearing, Judge Jonker expressed serious concern with VanDyke’s “extraordinary” criminal history and high risk for recidivism, and noted that he has a history of “taking advantage of vulnerable people.” As part of their guilty pleas, both defendants agreed to be permanently barred from preparing or filing, or assisting in the preparing or filing, of any federal tax return or documents for any other person or entity.
U.S. Attorney Miles said, “‘Integrity Tax’ was in name only. These former tax preparers abused vital tax credits for the working poor by fraudulently inflating their clients’ earned income or simply making up non-existent income. They took advantage of their clients and the hard working taxpayers of the United States. They will now pay the price for stealing from the American people.”
Erick Martinez, Special Agent in Charge of the Detroit office of the IRS-Criminal Investigation, joined in the announcement of the sentences and said, “Most return preparers are assiduous in performing their duties and play an important role in our tax system by preparing accurate returns for their clients. These defendants used their business to steal from the government and take advantage of their vulnerable clients. This case spotlights the importance of carefully selecting a tax return preparer.”
IRS-Criminal Investigation in Grand Rapids investigated the case, and Assistant U.S. Attorney Christopher O’Connor prosecuted it.
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Former State Court IT Administrator Pleads Guilty to Stealing Computer CodeRead the Press Release
BIRMINGHAM – The former computer systems administrator for the Alabama court system pleaded guilty this week in federal court in Montgomery to stealing court system computer code, announced U.S. Attorney Joyce White Vance, U.S. Secret Service Special Agent in Charge Jeffrey Anderson and Alabama Department of Public Safety Director Hugh B. McCall.
DAVID MICHAEL CARROLL, 59, who retired as director of Information Systems for the Alabama Administrative Office of the Courts in June 2007, entered his plea Tuesday before U.S. Magistrate Judge Wallace Capel Jr. to one count of being a state government employee who stole property worth at least $5,000 from a program that received $10,000 or more in federal funds annually. The U.S. Attorney’s Office for the Northern District of Alabama prosecuted the case after the U.S. Attorney’s Office for the Middle District of Alabama recused itself. Carroll’s sentencing has not been set.
Carroll’s co-defendant in the case, JILL HAWTHORNE, 36, a former database administrator for AOC, pleaded guilty earlier this year to aiding and abetting access to a protected law enforcement database. Her sentencing is scheduled June 14.
According to their plea agreements with the government, Carroll and Hawthorne stole computer code from AOC’s county court records database, known as Namemaster, in November 2007 while Carroll was doing contract work for the Madison County Circuit Court. Hawthorne was still employed with AOC at that time. Carroll and Hawthorne transferred the computer code and related information to an Orlando-based computer software development company, CyberBest Technology. Carroll had a working relationship with CyberBest management at the time, according to his plea agreement.
U.S. Secret Service and the Alabama Department of Public Safety investigated the case. Assistant U.S. Attorney David Estes is prosecuting the case.
Former Sports Agent, Benjamin M. Geller, Charged with Wire FraudRead the Press Release
BENJAMIN M. GELLER, age 53, a resident of Austin, Texas, was charged today in a one-count bill of information with wire fraud, announced U. S. Attorney Dana J. Boente.
According to court documents, GELLER was employed as a sports agent for, among others, Frank W. Warren, III, a former NFL player who played with the New Orleans Saints. In or around 1994, according to the Bill of Information, GELLER assisted Warren in obtaining a life insurance policy worth approximately $1,000,000. In the event of Warren’s death, the life insurance proceeds would fund a trust which was established by Warren and GELLER, for the benefit of Warren’s spouse and family. GELLER was named trustee of the trust.
In or around 2002, according to the Bill of Information, Warren died and the funds from the life insurance policy (approximately $1,000,000) were disbursed to a trust in Warren’s name for the benefit of his widowed spouse and family. From in or around 2003 through in or around 2007, according to court documents, GELLER acted as the trustee of the trust and was only permitted to expend funds as the trust provided; he was not permitted to expend trust funds for his own personal use. Despite that prohibition, according to court documents, from in or around 2003 through in or around 2007, GELLER unlawfully defrauded the trust and its beneficiary by spending over $500,000 in trust funds for his own personal use, including for travel, lodging, and entertainment purposes. GELLER also spent some of the $500,000 in trust funds for his own personal businesses, as well as for other miscellaneous purchases.
(Download Bill of Information )
Former Orleans Parish Bond Clerk, Lear Enclarde, Charged with ConspiracyRead the Press Release
LEAR ENCLARDE, age 68, a resident of New Orleans, was charged with Conspiracy to Commit Honest Services Mail Fraud today in a one-count Bill of Information, announced U. S. Attorney Dana J. Boente.
According to court documents, ENCLARDE, who worked in the Orleans Parish Criminal Clerk’s Office from 1973 through 2010, accepted cash and things of value from an un-licensed bail bondsman in exchange for her permitting the unlicensed bondsman to use the name of another, licensed bondsman and to forge that licensed bondsman’s signature on official court documents.
If convicted, LEAR ENCLARDE faces a maximum term of imprisonment of five (5) years, a fine of $250,000 and three (3) years of supervised release following any term of imprisonment.
U. S. Attorney Boente reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation, the New Orleans Police Department, the Orleans Parish District Attorney’s Office, and the United States Attorney’s Office.
The case is being prosecuted by Assistant U. S. Attorney Dan Friel.
(Download Bill of Information )
Former Mayor of Hialeah and Wife Charged with Tax FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Alysa Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s, Homeland Security Investigations (ICE-HSI), Miami Field Office, announced the indictment of Julio Robaina, 48, and his wife, Raiza Villacis Robaina, 39, both of Hialeah, for criminal tax offenses and making false statements to federal agents.
The indictment charges both defendants with one count of conspiring to defraud the United States for the purpose of impeding, impairing, obstructing, and defeating the lawful governmental functions of the Internal Revenue Service in the ascertainment, computation, assessment, and collection of federal income taxes, in violation of 18 U.S.C. § 371 and two counts of making and subscribing false tax returns, in violation of 26 U.S.C. § 7206(1). In addition, the indictment charges Julio Robaina with two counts of making false representations to federal agents, in violation of 18 U.S.C. § 1001(a)(2). The indictment also charges Raiza Villacis Robaina with one count of making a false representation to federal agents, in violation of 18 U.S.C. § 1001(a)(2).
According to the indictment, the manner and means by which the defendants sought to defraud the United States included conducting financial transactions in a manner that would conceal their true nature, concealing information from their tax return preparer, subscribing to false tax returns, and making false representations to federal agents. The indictment alleges that both defendants subscribed to personal income tax returns that falsely understated their total income and that defendant Julio Robaina also subscribed to corporate income tax returns that falsely overstated losses incurred. The indictment specifically alleges that the defendants subscribed to false personal income tax returns for tax years 2005 through 2007 and that Julio Robaina subscribed to false corporate income returns for tax years 2005 through 2007. Julio Robaina served as the mayor of Hialeah from December 2005 until May 2011.
United States Attorney Wifredo A. Ferrer stated, “Our citizenship comes with many privileges, but also with attendant duties and responsibilities. Among those duties, each of us -- regardless of station or position – is required to pay our fair share of taxes. The U.S. Attorney’s Office will continue to enforce our nation’s tax laws so that honest taxpayers are not burdened by others’ failure to meet their tax obligations.”
“The tax system is built on the premise that taxpayers file accurate tax returns,” said Michael J. DePalma, Acting Special Agent in Charge of IRS-Criminal Investigation, Miami Field Office. “No one is above the law and those who willfully violate our nation's tax laws will be held accountable for their actions.”
Alysa D. Erichs, Special Agent in Charge, ICE-HSI, stated, “Elected officials and people in positions of trust are held to an even higher standard than the general public. Investigative efforts by HSI alongside our partners at the IRS to uncover this alleged tax fraud scheme highlight the collaborative effort within federal law enforcement to ensure that no one operates above the law.”
Mr. Ferrer commended the investigative efforts of IRS-CI and ICE-HSI. Mr. Ferrer also thanked the Miami-Dade Police Department and the City of Miami Police Department for their assistance on the investigation. This case is being prosecuted by Assistant U.S. Attorney Richard Gregorie and Assistant U.S. Attorney Michael Davis.
An indictment is only an accusation and the defendant is presumed innocent until proven guilty.
Attachments: Indictment (PDF)
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Dallas Securities Broker Sentenced in Oklahoma to 84 Months in Prison for Role in Stock Manipulation SchemeRead the Press Release
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 Bank Executive Sentenced to 37 Months in Federal Prison for Embezzling from Bank of AmericaRead the Press Release
LUBBOCK, Texas — Donnie Wright, 53, of Lubbock, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 37 months in federal prison and ordered to pay $385,356 in restitution following his guilty plea in February 2013 to one count of bank embezzlement by a bank employee. Judge Cummings ordered that Wright surrender to the Bureau of Prisons on June 20, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Wright was employed by Bank of America in Lubbock, as a Branch Manager at the 5144 82nd Street location. The factual resume states that Wright was a member of the Board of Deacons and Trustee at Community Baptist Church (CBC) in Lubbock. Beginning in May 2006 and continuing to January 24, 2010, Wright used his position as a Bank of America employee to embezzle funds owned by CBC and entrusted to the custody and care of Bank of America. He employed a variety of methods to embezzle the funds, including embezzling from CBC’s Certificates of Deposits held at the bank; making cash withdrawals from CBC’s accounts using debit (withdrawal) tickets; and fraudulently drawing checks on CBC’s checking account.
The case was investigated by the FBI and the Lubbock Police Department. Assistant U.S. Attorney Amanda R. Burch prosecuted.
Foreign National Sentenced for Illegal Re-Entry by an Aggravated FelonRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Marcos Montes-Jurado was sentenced on Thursday, May 16, 2013 to 63 months in prison for Illegal Re-entry by an Aggravated Felon.
Montes-Jurado, 53, is a Mexican national who was arrested by Immigration and Customs Enforcement Agents in Belleville, IL, on January 2, 2013. He has been confined since his arrest. Montes-Jurado pled guilty to the federal charge in United States District Court in East St. Louis on February 15, 2013.
According to evidence presented at his change of plea and sentencing hearings, Montes-Jurado has been previously deported from the United States to Mexico four times. He also has five prior felony convictions in the United States, including three prior convictions relating to the distribution of cocaine.
When Montes-Jurado completes his term of imprisonment, he will be placed in civil deportation proceedings.
The investigation which resulted in Montes-Jurado’s arrest and conviction was conducted by ICE agents and the St. Clair County Sheriff’s Office.
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Florida Husband and Wife Indicted for Federal Tax CrimesRead the Press Release
Drs. David Leon Fredrick and Patricia Lynn Hough, of Englewood, Fla., were indicted by a federal grand jury in Fort Myers, Fla., for conspiring to defraud the Internal Revenue Service (IRS) by concealing millions of dollars in assets and income in offshore bank accounts at UBS and other foreign banks, the Department of Justice and IRS announced today.According to the indictment, Fredrick and Hough, married doctors, served on the Board of Directors of two Caribbean-based medical schools – one located on Saba, Netherlands Antilles, and one located on Nevis, West Indies. Fredrick had an ownership interest in the medical school on Nevis until 2007, when both medical schools were sold.
The indictment alleges that Fredrick and Hough conspired with each other and with Beda Singenberger, a citizen and resident of Switzerland who is under indictment in the Southern District of New York, and a UBS banker to defraud the IRS. They carried out the conspiracy by creating and using nominee entities and undeclared bank accounts in their names and the names of the nominee entities at UBS and other foreign banks to conceal assets and income from the IRS, including the sale of real estate associated with the medical school on Saba and shares they owned in the medical school on Nevis. The real estate was sold for more than $33 million, all of which was deposited into one of their undeclared accounts in the name of a nominee entity.
It is further alleged in the indictment that Fredrick and Hough used emails, telephone and in-person meetings to instruct Swiss bankers and asset managers to make investments and transfer funds from their undeclared accounts at UBS. It is alleged that Fredrick and Hough caused funds from the medical schools’ undeclared accounts to be transferred to undeclared accounts in their individual names or in the names of nominee entities. Fredrick and Hough then used the funds in their undeclared accounts to purchase an airplane, two homes in North Carolina and a condominium in Sarasota, Fla. Fredrick also transferred more than $1 million to his relatives.
Fredrick and Hough were also charged with four counts of filing false tax returns for 2005, 2006, 2007 and 2008. The indictment alleges that Fredrick and Hough filed false tax returns which substantially understated their total income and failed, on Schedule B, Parts I and III, to report that they had an interest in or signature or other authority over bank, securities or other financial accounts located in foreign countries. U. S. citizens, resident aliens and legal permanent residents of the United States have an obligation to report to the IRS on the Schedule B of a U.S. Individual Income Tax Return, Form 1040, whether they had a financial interest in, or signature authority over, a financial account in a foreign country in a particular year by checking “Yes” or “No” in the appropriate box and identifying the country where the account was maintained. U. S. citizens and residents also have an obligation to report all income earned from foreign bank accounts on their tax returns.
A trial date has not been scheduled. An indictment is merely an accusation, and every defendant is presumed innocent unless and until proven guilty.
The conspiracy charge carries a maximum potential penalty of five years in prison and a $250,000 fine. The false return charges each carry a maximum potential penalty of three years in prison and a $250,000 fine.
This case is being prosecuted by Trial Attorney Caryn Finley of the Justice Department’s Tax Division and was investigated by IRS – Criminal Investigation.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/taxFederal Grand Jury Indicts Five for Conspiracy, Smuggling and Money Laundering in “Spice” CaseRead the Press Release
BOISE – A federal grand jury in Boise on Tuesday indicted five Boise area residents on four counts of conspiracy to distribute a controlled substance analogue; conspiracy to smuggle goods into the United States; conspiracy to sell and transport drug paraphernalia; and conspiracy to launder money, U.S. Attorney Wendy J. Olson announced. The indictment was unsealed by the court on Wednesday.
The five defendants named in the indictment are:
- Mark A. Ciccarello, 35, of , Meridian, Idaho
- Robert A. Eoff, 30, of Boise, Idaho
- Troy L. Palmer, 43, of Boise, Idaho
- William B. Mabry, 45, of Boise, Idaho
- Holly F. Ciccarello, 39, of Meridian, Idaho
Mark Ciccarello made his initial appearance in federal court yesterday. Eoff, Palmer, Mabry and Holly Ciccarello appeared this morning. Trial for all defendants is set for July 2, 2013, before U.S. District Judge Edward J. Lodge.
The indictment alleges that between March 1, 2011 and July 9, 2012, within the states of Idaho, Alaska, California, Washington, and Wisconsin, the defendants conspired to purchase and import from China chemicals known as JWH018, AM2201, UR-144, and XLR11, which they used to treat innocuous plant matter to make “spice”—a synthetic cannabinoid similar to substances listed in Schedule I of the Controlled Substances Act. The indictment further alleges that the defendants conspired to sell and transport drug paraphernalia for sale, and that they conspired to launder money illegally obtained through their drug, importation and paraphernalia violations. The government is seeking forfeiture of proceeds derived from the alleged criminal activities.
A conviction for conspiracy to distribute a controlled substance analogue, as charged in Count One, is punishable by up to 20 years in prison, a maximum fine of $1 million, and up to three years of supervised release. Conspiracy to smuggle goods into the United States, as charged in Count Two, is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release. Conspiracy to sell and transport drug paraphernalia for sale, as charged in Count Three, is punishable by up to three years in prison, a maximum fine of $250,000, and up to one year of supervised release. Conspiracy to launder money, as charged in Count Four, is punishable by up to 10 years in prison, a maximum fine of $250,000, and up to three years of supervised release.
“This indictment demonstrates that Federal, state and local law enforcement in Idaho will vigorously investigate and prosecute those who unlawfully distribute dangerous synthetic substances in our communities,” said Olson. “Although we don't yet know the full toll that these substances that mimic cannabis have taken on users, we do know that emergency room workers, parents and law enforcement officers have terrifying stories of medically dangerous and sometimes deadly reactions. I commend all of the agencies and prosecutors who spent countless hours bringing the investigation to this point.”
“This investigation has taken out a major player in the synthetic drug industry who was operating coast to coast,” said DEA Special Agent in Charge Matthew G. Barnes. “Criminal drug organizations prey on our youth to line their pockets with millions of dollars in drug proceeds. This emerging industry poses a significant threat to our communities and regardless of how they are marketed, we will continue with our law enforcement partners to aggressively pursue them.”
The indictment is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Drug Enforcement Administration (DEA), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, Boise Police Department, Meridian Police Department, Ada County Sheriff’s Office, Canyon County Sheriff’s Office, and Nampa Police Department. Other federal agencies participating in the OCEDTF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Federal Bureau of Investigation (FBI), and U.S. Marshals Service.
The OCDETF program is a federal, multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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.
Ex-Offender Job FairRead the Press Release
Kenyen Brown, U.S. Attorney for the Southern District of Alabama, announces that as part of his Project H.O.P.E. (Helping Offenders Pursue Excellence) initiative, the United States Attorney’s Office for the Southern District of Alabama is collaborating with Bishop State Community College to host an ex-offender only job fair on Wednesday, May 22, 2013 at 1-4:30pm on the Bishop State Baker-Gaines Campus, located at 1365 Martin Luther King, Jr. Avenue in Mobile, AL. Some of the employers participating in the job fair include Austal Shipbuilding, Ingalls Shipbuilding, and Horizon Shipbuilding; all of whom are desiring to fill a range of positions. Prior experience as a welder is not necessarily required as on-the-job training opportunities may be available.
H&S Management and Holdings is another participating employer seeking to fill positions in its various companies including: air duct cleaning, security, tires and treading, commercial supply, janitorial services, and environmental clean up. Successful applicants with any employer would be expected to pass and maintain a clean drug screening record.
Job fair participants will also be able to meet with a range of community service providers including Mobile Works and AIDT. All of these community service providers have valuable resources to share with the ex-offender population. As an example, an ex-offender who is not successful in gaining employment at Wednesday’s job fair may be eligible to receive anywhere from $2,000-$10,000 for vocational training from a Department of Labor grant administered through Mobile Works.
U.S. Attorney Brown said “Just in the Southern District of Alabama alone, in the federal system, between the years of 2008-2010, 328 ex-offenders were revoked for violating the terms of their supervised release and sent back to prison. The cost to the American taxpayer to incarcerate those 328 ex-offenders over that three year period amounted to $9.2 million annually. If these same 328 ex-offenders had been successful on supervised release it would have only cost the American taxpayer roughly $1.3 million. Project H.O.P.E. is a restorative initiative with the aim of giving ex-offenders a chance to become good citizens while simultaneously affording the greater community with the opportunity to enjoy safer neighborhoods in which to live and a lesser tax burden.” U.S. Attorney Brown added, “Statistics compiled by the Administrative Office of the U.S. Courts in Washington D.C., indicate that ex-offender employment is a critical factor in whether recently released federal inmates are successful. Of the 262,000 federal prisoners that were released from federal prison between calendar years 2002-2006, 50% of those who could not secure any employment during the time of their supervised release (generally twoto- five years) committed a new crime or violated the terms of their release and were sent back to prison. However, an astonishing 93% of those who were able to secure employment during the entirety of their supervised release were able to successfully reintegrate back into society and not return to prison.”
For more information about the job fair or Project H.O.P.E go to www.ProjectHopeAlabama.com. Additional Note: U.S. Attorney Brown is available for interviews upon request. Call Tommy Loftis at 251-441-5845 to arrange an interview with U.S. Attorney Brown.
Equality Woman Pleads Guilty to Methamphetamine OffenseRead the Press Release
Jeanette L. Margenthaler, 41, of Equality, Illinois, pled guilty today in United States District Court in Benton to an indictment charging her with one count of unlawfully possessing pseudoephedrine with the intent that it be used to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment, returned by a Federal Grand Jury on February 5, 2013, alleged that the offense occurred in Saline County on January 8th.
Sentencing was set for September 6th at 10:00 a.m. at the United States Courthouse in Benton. At that time, Margenthaler faces up to 20 years’ imprisonment, a $250,000 fine, and 3 years of supervised release to follow her incarceration.
Margenthaler, who has been held without bond since her arrest on the federal charge on February 8th, was again remanded to the custody of the United States Marshal to await sentencing.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force with the assistance of the Gallatin County Sheriff’s Department.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
East Bay Home Building Company Sales Manager Pleads Guilty to Bribing Bank Loan OfficerRead the Press Release
SAN FRANCISCO – Jason Sterlino pleaded guilty in federal court in San Francisco today to paying bribes to a bank official in order to procure residential mortgage loans, United States Attorney Melinda Haag announced.
Sterlino was employed as a sales manager for Discovery Sales, Inc., from 2006 to 2009. He managed new home sales for two new housing developments in Oakland: the Monte Vista Estates and Monte Vista Villas residential developments. He reported directly to the president of Discovery Sales.
In pleading guilty, Sterlino admitted that he facilitated a 2007 agreement between Discovery Sales and a mortgage broker who promised to introduce potential home buyers to Monte Vista Estates in exchange for a referral fee or commission for each buyer who ultimately purchased a home. Over time, this scheme evolved into an agreement to pay the mortgage broker $30,000 for every loan funded by Bank of America that was processed by a particular Bank of America loan officer.
Sterlino admitted that he understood that a portion of the $30,000 referral fee would be paid by the mortgage broker to the Bank of America loan officer as a gift or commission. The purpose of this payment was to procure loans for unqualified buyers through applications that contained false information. Sterlino admitted that he received a portion of the $30,000, typically $5,000 per buyer, as a kickback from the mortgage broker.
Approximately 20 loans were funded by Bank of America in 2007 and 2008 as a result of this corrupt scheme, from which Sterlino personally received approximately $100,000 in cash.
Sterlino, 34, of Hercules, California, was charged in an Information that was filed on April 9, 2013. He was charged with one count of bank bribery in violation of 18 U.S.C. § 215(a). Under the plea agreement, Sterlino pleaded guilty to the offense alleged in the Information and has agreed to cooperate in the FBI’s continuing investigation.
Sterlino is free on bond pending sentencing. The sentencing is scheduled for October 24, 2013, before Judge Jeffrey White in San Francisco. The maximum statutory penalty for a violation of 18 U.S.C. § 215(a) is 30 years in prison and a fine of $1,000,000, plus restitution if ordered by the Court. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by members of the Special Prosecutions Unit of the U.S. Attorney’s office in San Francisco. The prosecution is the result of a three year investigation by the Federal Bureau of Investigation.
Drug Trafficker who hid Kilos of Heroin and Meth in Lakewood Apartment Walls ConvictedRead the Press Release
A drug trafficker who came to the attention of law enforcement after his roommate was shot and killed in November 2012, was convicted today following a three day jury trial, announced U.S. Attorney Jenny A. Durkan. JUAN HIDALGO-MENDOZA, 33, of Lakewood, Washington was convicted of Conspiracy to Distribute Controlled Substances, Possession with Intent to Distribute Controlled Substances, Possession of a Firearm in Furtherance of a Drug Trafficking Offense and being a Felon in Possession of a Firearm/Ammunition. The jury deliberated about 5 hours. HIDALGO-MENDOZA faces a mandatory minimum 15 years to life in prison when sentenced by U.S. District Judge Ronald B. Leighton on August 27, 2013.
According to records filed in the case, emergency crews responded to the Greenwood Apartments on San Francisco Ave. SW, in Lakewood, just before 10 PM on November 12, 2012. They found Jaime Diaz-Solis with a fatal gunshot wound on the sidewalk outside the ground floor apartment he shared with HIDALGO-MENDOZA. According to witnesses, they heard a gunshot and later HIDALGO-MENDOZA dragged Dias-Solis from the apartment yelling for neighbors to call an ambulance. HIDALGO-MENDOZA said he was in his bedroom when the victim was shot by an intruder. On the night of the shooting a search of the apartment revealed two bricks of heroin weighing over 3 kilos, wrapped in duct tape, as well as an AK-47 style assault weapon. Investigators also found a revolver in HIDALGO-MENDOZA’s bedroom closet. Hidden under the seat of HIDALGO-MENDOZA’s truck, investigators found $37,800 in cash. HIDALGO-MENDOZA was arrested in November for the drug conspiracy as well as being a felon in possession of a firearm. He has a prior conviction in California for distributing heroin and is prohibited from possessing firearms.
Two months after HIDALGO-MENDOZA’s arrest, and after the apartment had been rented to a new tenant, law enforcement learned there were additional drugs hidden in the unit. In the walls they found eight bricks of heroin wrapped in duct tape, and two bricks of methamphetamine wrapped in green cellophane. The hidden heroin totaled more than 13 kilos and the methamphetamine was nearly 2 kilos. The wrapping of the heroin was identical to the two bricks seized in November.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved.
The case was prosecuted by Assistant United States Attorneys Sarah Vogel and Steven Masada.
The case was investigated by Lakewood Police Department, the Drug Enforcement Administration (DEA) and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). The Auburn Police Department assisted with the case.Drug Smuggler Sentenced to More Than 10 Years for Hitting Border Patrol Unit with Load VehicleRead the Press Release
McALLEN, Texas – Jorge Eduardo Lopez, 21, of Rio Grande City, has been sentenced to 135 months imprisonment following a conviction for possession with intent to distribute marijuana, United States Attorney Kenneth Magidson announced today.
Lopez pleaded guilty on Jan. 1, 2013, admitting he transported 296 kilograms of marijuana north from the Rio Grande River near La Grulla. As he drove the load vehicle north, Border Patrol agents in marked units attempted to stop him. He traveled at a high rate of speed trying to evade arrest. Eventually, he crashed into one Border Patrol unit, damaging the vehicle and endangering the agent inside.
Today, U.S. District Judge Micaela Alvarez sentenced Lopez to the 135-month term which will be immediately followed by four years of supervised release. Judge Alvarez also ordered that Lopez pay more than $26,000 in restitution for the damaged vehicle and agent’s hospital bill.
Lopez has been in custody where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by Border Patrol, FBI and the Drug Enforcement Administration. Assistant United States Attorney Kristen Rees prosecuted the case.
District Man Sentenced to 50 Months in Prison on Federal Charges After Search Turns up A Semiautomatic Gun and PCP-Defendant Arrested After A Struggle with Police-Read the Press Release
WASHINGTON - Antowaun Lynch, 29, of Washington, D.C., was sentenced today to a 50-month prison term on federal drug and weapons offenses stemming from a search in which he was caught by police with a gun and phencyclidine (PCP), announced U.S. Attorney Ronald C. Machen Jr.
Lynch pled guilty in March 2013 in the U.S. District Court for the District of Columbia to unlawful possession with intent to distribute phencyclidine and unlawful possession of a firearm and ammunition by a person convicted of a crime. He was sentenced by the Honorable Rosemary M. Collyer. After his prison term, he will be placed on three years of supervised release.
According to the government’s evidence, in the early morning hours of Sept. 30, 2012, officers with the Metropolitan Police Department (MPD) were called to the 600 block of Edgewood Street NE to investigate several robberies. Lynch was part of a group of people that the officers encountered. When the officers approached him, Lynch appeared nervous and asked, “Why are you doing this?” Lynch continued to turn his body to the right toward the police car and away from the officers. He put his right hand on his waistband at his side. An officer then put his hand on Lynch’s waistband and noticed a weapon was concealed in the area.
When Lynch attempted to grab the weapon and remove it from his waistband, the officers grabbed onto the gun. Lynch kicked and resisted the officers who were trying to remove the gun and arrest him. After this struggle, the officers were able to retrieve the weapon, a semiautomatic handgun loaded with six rounds of 9mm ammunition in the magazine and one round in the chamber. After his arrest, officers also found a clear glass vial with a black top containing a yellow liquid of approximately one ounce of fluid PCP in Lynch’s pants pocket.
Lynch has a 2005 felony conviction in Virginia.
In announcing the sentence, U.S. Attorney Machen commended the actions of the MPD officers who participated in this arrest and the removal of the handgun and drugs. He also acknowledged the efforts of Assistant U.S. Attorney Emory V. Cole and Special Assistant U.S. Attorney Brittan Heller, who investigated and prosecuted the case.
13-172Desperado's Owners and Others Indicted on Racketeering Conspiracy and Drug ChargesRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that Desperado’s Cabaret owner James “Jim” Panos, 55, of Broussard, La., was indicted on May 8, 2013 in a superseding indictment, along with nine others on racketeering conspiracy and drug charges.
James Panos was charged with four counts in the indictment unsealed yesterday. The charges are the result of an investigation of drug trafficking, drug distribution, prostitution, and other illegal activity that took place at Desperado’s Cabaret in Carencro located on Northeast Evangeline Thruway. Panos was charged with racketeering conspiracy, conspiracy to maintain a drug-involved premises and distribution of controlled substances, possession of a firearm with an obliterated serial number, and possession of a firearm by a prohibited person.
The co-defendants charged with one count of racketeering conspiracy are:
- Jennifer “Nancy” Panos, 47, of Broussard; and
- Dipak Vora, 69, of Baton Rouge, La.
The co-defendants charged with one count of conspiracy to maintain a drug-involved premises and distribution of controlled substances are:
- Jennifer “Nancy” Panos, 47, of Broussard;
- Elias “E.J.” White, 52, of Lafayette;
- Heike Slattery, 41, of Carencro;
- Crystal Sampy, 51, of Lafayette;
- Acquila Shanete “Sexy” Latigue, 27, of Lafayette;
- Gerald Cormier, 43, of Carencro;
- Tanja Clavier, 28, of Lafayette; and
- Lydia “Unique” Gauthreaux, 31, of Crowley.
The racketeering conspiracy charge carries penalties of up to 20 years in prison, a fine of not more than twice the gross profits, and three years supervised release. The conspiracy to maintain a drug involved premises charge carries penalties of up to 20 or 30 years in prison, fines of up to $500,000 to $2 million, and supervised release of three to six years. James Panos faces five years in prison, a $250,000 fine, and three years of supervised release for the possession of a firearm with an obliterated serial number charge. He also faces 10 years in prison, a $250,000 fine, and three years of supervised release for the possession of a firearm by a prohibited person charge. The defendants are scheduled to appear for arraignment on May 29, 2013.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The DEA, the FBI, the U.S. Department of Homeland Security Investigations, Louisiana State Police and Lafayette Metro Narcotics investigated the case. Assistant U.S. Attorneys Myers P. Namie and Daniel J. McCoy prosecuted the case.
Defendants Sentenced to More Than 8 Years in Prison for Assault and Attempted Robbery of Federal Agent at Gun PointRead the Press Release
OAKLAND – Otis Mobley and D’Marce Hutcherson were sentenced today to 114 months and 104 months, respectively, in prison for assaulting and attempting to rob an undercover federal agent with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) in March of 2012, United States Attorney Melinda Haag announced.
Hutcherson pleaded guilty on October 25, 2012, to assaulting a federal officer by pointing a loaded handgun at him. Co-defendant Mobley also pleaded guilty on October 25, 2012, to aiding and abetting Hutcherson and another co-defendant in the assault and attempted robbery of the agent.
“Our law enforcement officers bravely place themselves in harm’s way every day as they protect the citizens of our communities,” said U.S. Attorney Melinda Haag. “This case is a reminder of their selflessness and demonstrates the importance of prosecuting anyone who assaults a member of law enforcement.”
“I am very grateful the agent who was assaulted was not seriously injured,” said Bureau of Alcohol, Tobacco, Firearms and Explosives, Special Agent in Charge Joseph M. Riehl. “The significant prison sentences ordered for these defendants should serve as a warning to anyone who contemplates a similar crime: You will be apprehended, prosecuted and held fully accountable for your conduct.”
Mobley, 24, of Richmond, California, and Hutcherson, 20, of Rodeo, California, were charged by Indictment on April 5, 2012 with one count of Conspiracy to Commit Robbery of Mail, Money, or Other Property of the United States, and Assault on a Federal Officer, in violation of Title 18, United States Code, Section 371; one count of Assault on a Federal Officer with a Deadly Weapon, in violation of Title 18, United States Code, Section 111(b); one count of Robbery of Mail, Money, or Other Property of the United States, in violation of Title 18, United States Code, Section 2114(a); and one count of Using, Carrying, Possessing, and Brandishing a Firearm During a Crime of Violence, in violation of Title 18, United States Code, Section 924(c).
The sentences were handed down by U.S. District Court Judge Yvonne Gonzalez Rogers, and also include a five year period of supervised release. The defendants have been in custody since their arrests on March 28, 2012.
The prosecution is the result of an investigation by the ATF and various local police departments.
Defendant in Denver Case Arrested in Minneapolis Wednesday After Failing to Appear for Initial Appearance in Federal Court Earlier This MonthRead the Press Release
SALT LAKE CITY -- Paul Ernest Sellors, age 69, of Saint Anthony, Minnesota, charged with using a counterfeit seal of a United States Court in an indictment returned by a federal grand jury in Denver, Colorado, was arrested Wednesday in Saint Anthony..
Sellors was taken into custody without incident by members of the FBI’s Minneapolis Joint Terrorism Task Force. A federal magistrate judge in Denver issued a warrant for his arrest on May 1, 2013, after he failed to appear for an initial appearance on the charges in the indictment.
The indictment, filed in April, alleges Sellors and a co-defendant, Ronald Roy Hoddenpyle, age 70, of Colorado Springs, Colorado, used a forged and counterfeit seal of the “United States of America, District Court, District of Minnesota,” to authenticate fraudulent documents, including an order to set trial by jury, an order of custody, and orders to reschedule jury trials. Sellors and Hoddenpyle are charged with four counts of using a counterfeit seal of a United States Court in the indictment.
A five-day jury trial for Hoddenpyle has been set for July 15, 2013, before U.S. District Judge Christine M. Arguello in federal court in Denver. Hoddenpyle is in custody.
Sellors had an initial appearance in Minneapolis Wednesday. A detention and identity hearing has been scheduled for 2:30 p.m. CDT Thursday.
The case against Sellors and Hoddenpyle is being prosecuted in Denver by Assistant U.S. Attorneys from the District of Utah. The case is being investigated by special agents of the FBI and the U.S. Treasury Inspector General for Tax Administration and the U.S. Marshals Service.
Crack Dealer Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. - Dannis Eugene Hardy, 30, of Mobile, Alabama, was sentenced in federal court yesterday for his participation in a conspiracy to distribute crack cocaine. Hardy entered a guilty plea to the charges in January of this year.
Judge Callie V. S. Granade imposed a sentence of 100 months imprisonment, to be followed by a supervised release term of three years. The judge also ordred that the defendant undergo drug abuse treatment during his incarceration and his supervision. No fine was imposed, but the judge ordered that Hardy pay the special manadtory assessment of $100.
The case was investigated by the Mobile Police Department, the Mobile County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Gloria Bedwell.
Convicted Embezzler Sentenced for Lying to Get A Lighter SentenceRead the Press Release
PHILADELPHIA - Katherine M. Harrell, 31, of Fernwood, PA, who lied to a U.S. District Court Judge during a previous sentencing hearing on her embezzlement conviction, was sentenced today to 70 months in prison. Harrell was being sentenced in February 2012 for stealing more than $500,000 from United Savings Bank where she was employed as a branch manager. In asking for leniency, Harrell told the court that her brother had been in a car accident, was in a hospital bed in her living room and would have to go to a nursing home if Harrell could not care for him. The statement was a complete fabrication. Harrell further falsely stated that she did not have any parents and that her young child would be placed in foster care if she could not care for him. Harrell’s parents were alive and Harrell’s mother had agreed, prior to sentencing, that Harrell’s child could continue living with Harrell’s parents if Harrell were sent to jail. Based on the fabrications, U.S. District Court Judge Anita Brody sentenced Harrell to one day in prison, followed by supervised release. It was subsequently discovered that the pleas that Harrell made for leniency were lies.
Harrell pleaded guilty, on December 17, 2012, to corruptly influencing the due administration of justice. In fashioning today’s sentence, U.S. District Court Judge Eduardo Robreno considered the punishment Harrell would have faced had the court known that the defendant was being untruthful at her first sentencing. He also ordered Harrell to undergo substance abuse treatment, pay a $500 fine, and ordered three years of supervised release.
The case was investigated by the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Karen L. Grigsby.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Camden, N.J., Man Allegedly Exchanged More Than $1 Million in Snap/Food Stamp Benefits for CashRead the Press Release
CAMDEN, N.J. – A Camden man who allegedly stole more than $1 million dollars from the U.S. Government through a food stamps scheme was arrested by federal agents this morning, U.S. Attorney Paul J. Fishman announced.
Alexander D. Vargas, 34, was charged in connection with a scheme in which he allegedly purchased Supplemental Nutrition and Assistance Program (SNAP) benefits (formerly known as food stamps) for 50 cents on the dollar at the local grocery store he was managing in Camden. He is charged by Complaint with one count of stealing monies from the United States. Vargas was arrested by agents of the Department of Agriculture, Office of Inspector General, Homeland Security Investigations and the IRS. He is scheduled to appear this afternoon before U.S. Magistrate Judge Joel Schneider in Camden federal court.
According to documents filed in this case:
From February 2012 through December 2012 Vargas managed Eddies Grocery, a small grocery store in Camden that was authorized to accept SNAP benefits. The program is administered by the U.S. Department of Agriculture. Retail food stores that have been approved for participation in SNAP may sell food in exchange for food stamp benefits. They may not, however, exchange food stamp benefits for cash.
Every food stamp recipient receives an Electronic Benefits Transfer (EBT) card, similar to a debit card, with which to make purchases. Every retailer authorized to accept food stamp benefits has an EBT terminal. Food purchases are made by swiping the card at the terminal. After the customer enters a secret Personal Identification Number (PIN), the EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the proposed transaction and informs the retailer whether the transaction should be authorized or denied. If the transaction is authorized, the amount of the purchase is then deducted electronically from the food stamp benefits reserved for the customer, and the amount is credited to the retailer’s designated bank account.
Eddies Grocery designated a bank account at Sovereign Bank to receive the reimbursements for SNAP benefits. Bank records listed Vargas as the manager of Eddies Grocery, and another individual as the owner of the store.Eddies Grocery was first approved to participate in the SNAP program in 2007. In his application to participate in SNAP, the owner estimated that Eddies Grocery would generate receipts of approximately $280,000 annually, or an average of approximately $23,333 per month. The volume of SNAP benefits reimbursement received at Eddies Grocery substantially exceeded those estimates, indicating large scale food stamp fraud. From February 2012 through November 2012 the SNAP redemptions were more than $2.8 million greater than the estimates:
Month / Year
SNAP Redemptions
Reported expected monthly redemptions
Difference
$330,525.81
$23,333.00
$307,192.81
10/2012
$344,134.75
$23,333.00
$320,801.75
09/2012
$338,930.30
$23,333.00
$315,597.30
08/2012
$320,269.62
$23,333.00
$296,936.62
07/2012
$331,932.59
$23,333.00
$308,599.59
06/2012
$315,867.62
$23,333.00
$292,534.62
05/2012
$289,723.15
$23,333.00
$266,390.15
04/2012
$292,545.28
$23,333.00
$269,212.28
03/2012
$293,100.57
$23,333.00
$269,767.57
02/2012
$245,968.65
$23,333.00
$222,635.65
Total:
$3,102,998.34
$233,330.00
$2,869,668.34
In addition to the high volume of SNAP benefits redemptions, law enforcement agents verified the fraudulent exchange of SNAP benefits for cash through the use of a cooperating witness and an undercover law enforcement officer. During a series of five transactions from June 7, 2012, through Oct. 4, 2012, law enforcement agents directed a cooperating witness and an undercover law enforcement officer to go into Eddies Grocery and exchange $1,359.75 in SNAP benefits for $650 cash.
A review of the bank records for the Eddies Grocery account showed total cash withdrawals from the account for the calendar year of 2012 of $3,109,776. In addition, records from February 15, 2012, (when defendant Alexander Vargas was added as an authorized cosigner on the account) through December 2012, showed $2,548,510 in cash withdrawals – of which Vargas’ name was on 40 withdrawals totaling $1,869,266.The charge of theft of United States funds is punishable by a maximum potential penalty of 10 years in prison and a fine of $250,000.
U.S. Attorney Fishman credited special agents of the U.S. Department of Agriculture, Office of Inspector General, under the direction of Special Agent in Charge William G. Squires Jr. in New York; the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew McLees; and IRS – Criminal Investigations, under the direction of Special Agent in Charge Shantelle P. Kitchen, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden.
13-201
Vargas, Alexander Complaint