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15 May 2013
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on May 14, 2013, before U.S. Magistrate Judge Keith Strong, the following individual was arraigned:
JAMES HOWARD EASTLICK, a 69-year-old resident of Laurel, appeared on appeared on charges of:
Count I: Conspiracy to Defraud the United States
Penalty: Five years imprisonment, $250,000 fine, and three years of supervised release)
Counts II-VI: Scheme to Defraud the United States and the Chippewa Cree Tribe/ Wire Fraud
Penalty: 20 years imprisonment, $250,000 fine, and three years of supervised release)
Count VII: Theft of Federal Monies
Penalty: Ten years imprisonment, $250,000 fine, and three years of supervised release)
Count VIII: Theft from an Indian Tribal Government Receiving Federal Funding
Penalty: Ten years imprisonment, $250,000 fine, and three years of supervised release)
Count IX: Receipt of Stolen Money in Interstate Commerce
Penalty: Ten years imprisonment, $250,000 fine, and three years of supervised release)
Counts X-XVII: Money Laundering
Penalty: Ten years imprisonment, $250,000 fine, and three years of supervised release)
EASTLICK pled not guilty to the charges and is currently released on special conditions.
Assistant U.S. Attorney Carl E. Rostad is the prosecutor for the United States.
The investigation was a cooperative effort between the U.S. Department of Interior - Office of Inspector General, the Criminal Investigation Division of the Internal Revenue Service, and the Federal Bureau of Investigation.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Husband and Wife Sentence to Prison for Tax FraudRead the Press Release
PENSACOLA, FLORIDA – Rudolf Straat, 49, and his wifeMaria Gudelis, 45, both of Sarnia, Ontario, Canada, were sentenced to two years in federal prison for conspiring to commit tax fraud, mortgage fraud, and money laundering.
Between 2004 and 2012, the husband-and-wife team fraudulently obtained mortgage loans to purchase homes in Florida and Nevada for more than $10 million. In applying for these loans, Straat and Gudelis falsely represented that they were United States citizens when, in fact, Straat is a citizen of the Netherlands, and Gudelis is a citizen of Canada. In addition, they falsely represented on the loan applications that they were unmarried and made false statements concerning their employment.
Straat and Gudelis concealed income they received on the sales of these homes by transferring the properties into trusts and nominee companies, and by taking other steps to ensure that gains from the sales would not be reported under their personal taxpayer identification numbers.
The couple lived in Sandestin from at least October 2005 through July 2007. During this period, Straat failed to file federal income tax returns for tax years 2005 and 2006, failing to report $364,902 in capital gains for 2005, and more than $689,368 in capital gains for 2006 to the IRS. Gudelis also failed to file income tax returns for tax years 2005 and 2006, failing to report $749,883 in capital gains for 2005, and more than $30,826 in capital gains for 2006. Both Straat and Gudelis used a portion of these unreported capital gains to fraudulently purchase additional properties.
Straat pled guilty to conspiracy and tax charges in December 2012. Gudelis pled guilty as charged in early January 2013. As part of their sentence, Gudelis and Straat are required to pay restitution in the amount of $575,814 to the IRS and $5,188,459 to the mortgage lenders they victimized.
United States Attorney Marsh praised the work of IRS-Criminal Investigations, the Federal Bureau of Investigation, and Homeland Security Investigations, whose joint investigation led to the convictions in this case. “Mortgage fraud harms not only lenders, but honest homebuyers and the community at large through increased housing costs,” Marsh said. “We will continue to investigate and prosecute criminals who try to game the system by manipulating the mortgage loan industry and cheating on their taxes.”
James D. Robnett, Special Agent in Charge of IRS Criminal Investigation, stated, “Mortgage fraud impacts the entire country by weakening faith in the financial system. IRS-CI’s goal is to help restore confidence in the financial system, both the public tax system and the private banking system, through our aggressive investigation of violations of federal laws, no matter where in the world these investigations take us. It is with the cooperation of the talented individuals at the U.S. Attorney’s Office that our agency and others can work together towards this common goal.”
Nestor Duarte, Acting Special Agent in Charge of the Jacksonville FBI Office, stated, “The FBI identified mortgage fraud as a threat to not only the banking industry, but the financial sector as a whole. To that end, the FBI, working with its partners in the banking and mortgage industry purposely identified groups and individuals, both domestically and internationally, who willingly participate in these criminal schemes and diligently work with the U.S. Attorney’s Office to bring about successful prosecutions."
The case was prosecuted by Assistant U.S. Attorney Tiffany H. Eggers.Gregg County Woman Guilty of Federal Tax ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas - A 38-year-old Longview, Texas woman has pleaded guilty to federal tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Racyna Antoinette Henry pleaded guilty to an information charging her with aiding and assisting in the preparation of fraudulent tax returns on May 14, 2013 before U.S. Magistrate Judge Judith A. Guthrie.
According to information presented in court, in 2006, Henry began working out of her home as a tax return preparer with a company known as Preyear’s Tax and Check Cashing Services, LLC, which is based in Alabama. Around October 2007, Henry also managed and operated a company known as Henry’s Tax Service LLC out of her home. At some point in 2006, Henry admits that she began assisting in the preparation of false federal income tax returns. The false items contained false dependents, false child tax credits, false child and dependent care expenses, false losses on farming activities, and false earned income tax credits.
The estimated tax loss related to the false federal income tax returns prepared with assistance from Henry from 2006 to 2010 is between $200,000 and $400,000. Henry faces up to 3 years in federal prison at sentencing and restitution for her crime. A sentencing date has not been set.
This case is being investigated by the IRS and is being prosecuted by Assistant U.S. Attorney Alan R. Jackson.Fugitive U.S. Lawyer Expelled from Nicaragua to Face Chargesof International Investment Fraud and Money LaunderingRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces that Lawrence S. Hartman, a/k/a Larry Hartman, a/k/a Larry Hart, a/k/a Lawrence Scott Hartman-Grosser (47, Costa Rica; a U.S. lawyer formerly of New York and Florida), who was arrested on an immigration violation by Nicaraguan authorities last week, was today expelled and deported from Nicaragua and turned over to U.S. authorities in Miami. Hartman faces charges of both conspiracy to commit, and substantive acts of, mail fraud, wire fraud and money laundering arising from an international investment fraud and money laundering scheme that resulted in victim-investor losses in excess of $137 million. If convicted, he faces a maximum penalty of 20 years' imprisonment on each of the three conspiracy and substantive mail and wire fraud offenses, and 10 years in prison on each of the substantive money laundering counts (Counts 4 - 17).
Hartman was charged in a Superseding Indictment on March 2009. He is expected to make his initial appearance tomorrow, May 16, 2013, at 1:30 pm in U.S. District Court in Miami.
This apprehension and expulsion was achieved through the joint cooperation of various agencies, including U.S. Immigration and Customs Enforcement's Homeland Security Investigations, the U.S. Secret Service, the U.S. Department of State Bureau of Diplomatic Security, U.S. Embassy Managua, INTERPOL Washington, and the Nicaraguan National Police.
To date, juries have found four of Hartman's co-defendants guilty of the fraud scheme, and another co-defendant pleaded guilty. Specifically, on April 19, 2013, a federal jury found United Kingdom citizens, Paul R. Gunter (64, Odessa, Florida; originally of London), and Simon Andrew Odoni (56, Hertfordshire, UK) guilty of three counts of conspiracy to commit mail fraud, wire fraud, and money laundering, as well as nineteen counts of mail and wire fraud, and fourteen counts of money laundering. Gunter and Odoni each face a maximum penalty of 20 years in federal prison on each of the conspiracy charges and each of the separate mail and wire fraud charges, and up to 10 years on each of the money laundering charges. Both individuals will also be ordered to forfeit real property, bank accounts, an airplane, vessels, and vehicles purchased with proceeds of the fraud scheme. As part of the investigation, federal agents seized nearly $5 million in U.S. currency. Gunter and Odoni are scheduled to be sentenced on July 23, 2013.
In March 2011, co-defendant Richard Sinclair Pope pleaded guilty to conspiracy to commit wire and mail fraud. Pope faces a maximum sentence of 20 years in prison.
In a related trial that took place in May 2012, Houston lawyers Roger Lee Shoss and Nicolette Loisel were convicted of one count of conspiracy to commit wire fraud in connection with their participation in the corporate identity theft aspect of the scheme. The case was investigated by the U.S. Immigration and Customs Enforcement's Homeland Security Investigations, Tampa, Florida, as well as the U.S. Secret Service, Tampa, Florida and Newark, New Jersey Field Offices.
The government received assistance from several other authorities, including the City of London Police, the UK's Serious Fraud Office and Norfolk Constabulary, the Spanish National Police, the U.S. Securities and Exchange Commission, the Ontario Securities Commission, and the British Columbia Securities Commission.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
The case is being prosecuted by Assistant United States Attorneys Rachelle DesVaux Bedke and Kelley Howard-Allen.
Four Sentenced for Possessing 40 Mm Grenades as Part of Los Zetas OrganizationRead the Press Release
McALLEN, Texas – Four Mexican nationals who had illegally entered the U.S. and possessed 40 mm grenades and a launcher have been ordered to federal prison, three of whom received the maximum sentences allowed by law, United States Attorney Kenneth Magidson announced today. Juan Ricardo Martinez-Cardenas, 38, Daniel Blanco-Avila, 23, Martin Martinez-Medina, 18, and Jose Lopez-Cerda, 24, entered guilty pleas on March 5, 2013, for possessing a destructive device.
Today, Chief U.S. District Judge Ricardo H. Hinojosa sentenced Martinez-Cardenas, Blanco-Avila and Lopez-Cerda each to 120-month terms of federal imprisonment. In arriving at its sentence, Judge Hinojosa noted that although their guideline recommendations amounted to life in prison, the court was restricted to the 10-year-terms by statute. As to Martinez-Medina, the court downwardly departed to a 62-month-term of federal imprisonment, taking into consideration threats made against him for not following orders. As illegal aliens, they are all expected to face deportation proceedings following their release from prison.
Evidence showed that Martinez-Cardenas had been stopped in a vehicle with a four 40 mm grenades, an improvised 40 mm grenade launcher, four AK-47 type rifles and corresponding magazines loaded with 2,791 rounds of ammunition. Through subsequent investigation it was determined that Blanco-Avila, Martinez-Medina and Lopez-Cerda had also been involved in the transportation and movement of the munitions.
All four entered the United States illegally and then received the firearms and munitions which were all separately smuggled into the United States. The weapons were brought in by the Zetas, for whom these four defendants worked, in order to avoid the Gulf Cartel. The grenades, grenade launchers and firearms and ammunition were then to be smuggled back into to Mexico for use fighting in Miguel Aleman, Tamaulipas, Mexico.
All of the men have been on detained without bond since the time of their arrest where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives and Border Patrol. The case was prosecuted by Assistant United States Attorney Steven Schammel.Fort Pierre Man Sentenced for Possession of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Pierre, South Dakota man convicted of Possession of a Controlled Substance was sentenced on May 13, 2013 by U.S. Magistrate Judge Mark A. Moreno.
Brent Flood, age 23, was sentenced to 6 months of imprisonment, a $1,000 fine, and a $25 special assessment to the Federal Crime Victims Fund.
Flood was indicted by a federal grand jury on September 19, 2012. He pled guilty to a Superseding Information on March 12, 2013. The charge stems from an incident on April 5, 2012 wherein Flood knowingly and intentionally possessed marijuana, a Schedule I controlled substance.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Flood was immediately turned over to the custody of the U.S. Marshal Service.
Former Wilkes-Barre, PA. Football Coach Sentenced to 25 Years for Producing Child Pornography, Interstate Extortion and Cyber StalkingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that the former football coach of Holy Redeemer High School in Wilkes-Barre was sentenced today to serve 25 years in prison by Senior United States District Court Judge Edwin M. Kosik for producing and attempting to produce child pornography, interstate extortion, and cyber stalking.
According to United States Attorney Peter J. Smith, the defendant Joseph J. Ostrowski, previously pleaded guilty to persuading and enticing, and attempting to persuade and entice, minors to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct, including live transmissions via webcam, and using the internet to extort and attempt to extort additional nude photographs, images and live transmissions of sexual conduct from his victims.
Ostrowski was indicted by a federal grand jury in Scranton in May 2012 and taken into custody. He was later indicted for cyber stalking by a federal grand jury in the Western District of Michigan. That case was transferred to the Middle District of Pennsylvania for prosecution. The United States Attorney’s Office for the Middle District of Pennsylvania subsequently filed a superseding Information against Ostrowski.
According to a summary of the Government’s evidence presented at the guilty plea hearing by Assistant United States Attorney Francis P. Sempa, Ostrowski’s production and attempted production of child pornography, interstate extortion activities and cyber stalking occurred during 2006 through May 2012, and involved victims in Pennsylvania, New York, North Carolina, California, Texas, Florida, New Jersey, Michigan, Ohio, Virginia, Minnesota, Indiana, Alabama, and Maryland. Some victims were adults; some were minors; they included students who participated in athletic programs. Ostrowski admitted that he frequently posed as students, school alumni, and other persons and used Facebook, Skype, e-mail, instant messaging, and cellular text messaging to commit the crimes.At the sentencing hearing today, the Government noted that Ostrowski victimized or attempted to victimize more than 60 people, used deception to compromise the Facebook and other online identities of people, and in some instances took advantage of the trust that athletes placed in him. Ostrowski was described by the Government as “the very definition of an online predator.”
Ostrowski’s charges resulted from an investigation by the Federal Bureau of Investigation in Scranton and Michigan and the Michigan State University Police.
Judge Kosik also ordered that Ostrowski be placed on supervised release for life following his prison sentence, pay a $1500 fine, and a $300 special assessment.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Executive Director of Albuquerque-Based Halfway House Pleads Guilty to Federal Embezzlement and Tax OffensesRead the Press Release
ALBUQUERQUE – Robin Cash, 56, of Albuquerque, N.M., pleaded guilty this morning to a seven-count indictment charging her with four counts of theft concerning programs receiving federal funds, and three counts of willful failure to file a tax return. Cash entered her guilty plea without the benefit of any plea agreement. Cash’s guilty plea was announced by U.S. Attorney Kenneth J. Gonzales and Dawn Mertz, Special Agent in Charge of the Phoenix Field Office of IRS Criminal Investigation.
At the time of the offenses to which she pleaded guilty, Cash was employed as the Executive Director of the La Pasada Halfway House (La Pasada), a residential center in Albuquerque that provides housing for defendants in the federal criminal justice system, including those awaiting trial and those who are re-entering society after serving a prison sentence. Court filings reflect that the Pretrial Services Office (PTS) of the U.S. District Court for the District of New Mexico contracted with the not-for-profit corporation that operates La Pasada to cover the costs of providing a custodial residential environment for federal defendants. PTS made monthly payments of approximately $60,000 to $80,000 to La Pasada to cover these costs, and La Pasada deposited the funds in its business bank account.
According to the indictment, after Cash became Executive Director of La Pasada in April 2008, she was added as a signatory on the halfway house’s business bank account and received a debit card for the account. Between Sept. 2008 and Jan. 2011, Cash made unauthorized debits to La Pasada’s business bank account and used the proceeds for her own benefit and not for La Pasada’s benefit. The unauthorized debits included checks written for services that were never provided to La Pasada; ATM withdrawals at various Albuquerque locations, including casinos; and debit card charges at casinos in Las Vegas, Nev.
In April 2010, Cash opened a checking account and corresponding bank account in the name of La Pasada without authorization. Thereafter and until Feb. 2011, Cash regularly took funds that La Pasada residents were required to pay to defray their housing costs and deposited the funds into the unauthorized account. She then used the funds to pay for personal expenses that did not benefit La Pasada.
During today’s plea hearing, Cash pleaded guilty to Counts 1 through 4 of the indictment and admitted that, while acting as an agent of an organization that received at least $10,000 in funds on an annual basis under a federal program, she embezzled funds from the organization and converted those funds for her own use. Cash also pleaded guilty to Counts 5 through 7 of the indictment and admitted that she failed to federal file income returns for calendar years 2008, 2009 and 2010.
At sentencing, Cash faces a maximum penalty of ten years in prison on each of the four theft offenses and a maximum penalty of one year in prison on each of the three tax offenses. Her sentencing date has yet to be scheduled.
The case was investigated by IRS Criminal Investigation, and is being prosecuted by Assistant U.S. Attorney John C. Anderson.Former Eagle Pass Department of Public Works Employee Sentenced for Role in City Credit Card Fraud SchemeRead the Press Release
This morning, former City of Eagle Pass Department of Public Works employee Edgar Aguilar was sentenced to 42 months in federal prison and ordered to pay $68,373.87 in restitution for his role in a credit card fraud scheme involving the City of Eagle Pass announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Armando Fernandez.
On November 29, 2012, Aguilar pleaded guilty to one count of conspiracy to commit credit card fraud. By pleading guilty, Aguilar admitted that during 2011, he obtained five City of Eagle Pass-owned “Fuelman” credit cards designated for fuel purchases for Public Works department vehicles and distributed them to his co-defendants. The defendants then used those cards to purchase fuel for their own vehicles and to purchase fuel for others at the City’s expense. In some instances, defendants charged individuals a reduced rate for fuel purchased using the City’s credit card, and then pocketed the cash.
Co-defendants Rene Castillo, Armando Ojeda Nuncio, and Ricardo Hernandez-Espinoza have all pleaded guilty to use of unauthorized access device. Elizabeth Vivian has pleaded guilty to the conspiracy charge. All four are awaiting sentencing.
This joint investigation was conducted by agents with the Federal Bureau of Investigation together with investigators from the Eagle Pass Police Department. Assistant United States Attorney Tad Duree is prosecuting this case on behalf of the Government.
Five People Sentenced for Gun and Drug Crimes in Connection with Aryan Knights CaseRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced today the sentencing of Lisa Rochel Samayoa, 45, of Boise; Nina Ann Lucas, 32, of Pocatello, Idaho; Darin Scott Melton, 44, of Twin Falls, Idaho; and Omar Riveroll-Hernandez, 32, of Long Beach, California, to federal prison for conspiring to distribute methamphetamine. Cameron James Ball, 25, also of Boise, was sentenced for unlawfully possessing a firearm. The five defendants pleaded guilty to the charge on January 14, 2013. They were sentenced yesterday and today by the Honorable Larry A. Burns, U.S. District Judge for the Southern District of California, at the federal courthouse in Boise.
Samayoa was sentenced to 135 months in prison followed by five years of supervised release. According to information presented in court, Samayoa was involved in the ongoing distribution of methamphetamine. In May 2012, she sold approximately three ounces of methamphetamine to confidential informants; law enforcement seized an additional four ounces. Samayoa was previously convicted of trafficking methamphetamine in 2003.
Lucas was sentenced to 130 months in prison followed by five years of supervised release. According to information presented in court, Lucas conspired with others to distribute methamphetamine in the Boise area. At the time she committed this crime, Lucas was on probation for a felony drug offense.
Melton was sentenced to 87 months in prison followed by five years of supervised release. According to information presented in court, Melton conspired with others to distribute methamphetamine. He admitted that on March 15, 2012, he sold three ounces of methamphetamine to a confidential informant.
Riveroll-Hernandez was sentenced to 60 months in prison followed by five years of supervised release. According to information presented in court, Riveroll-Hernandez was arrested on May 27, 2012, in Twin Falls, Idaho, when law enforcement officers discovered approximately seven ounces of methamphetamine concealed inside a hidden compartment of his vehicle.
Ball was sentenced yesterday to 33 months in prison followed by three years of supervised release for unlawfully possessing a firearm. According to the plea agreement, Ball admitted that he was in possession of a Hi-Point JCP .40 semiautomatic pistol, which he sold to a confidential informant. Ball was prohibited from possessing the firearm because he was previously convicted in 2005 of the felony crime of possessing a controlled substance.
The cases are part of the Aryan Knights investigation in which 23 people were charged as a result of a long term investigation by the Treasure Valley Metro Violent Crime Task Force. The investigation began when the task force focused on illegal drug distribution by the “Aryan Knights,” a gang active both in prison and on the streets throughout Idaho. Through the investigation, law enforcement agents identified Aryan Knights gang members who were trafficking methamphetamine, as well as associates of the gang who were the source of that methamphetamine.
Of the 23 people charged, 22 have pleaded guilty. The final defendant has signed a plea agreement but not yet entered his guilty plea in court. Fifteen defendants have been sentenced while the others are awaiting sentencing.
The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. The joint investigation also included the Organized Crime and Drug Enforcement Task Force (OCDETF), a cooperative law enforcement effort of the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service.
The cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Federal Prison Term Handed Down to San Antonio Woman for Attempting to Purchase Machine Guns and for Bank FraudRead the Press Release
In San Antonio this morning, 38-year-old Yadira Mauricio Ybarra was sentenced to 87 months in federal prison for her role in a conspiracy to purchase machine guns and attempt to smuggle them into Mexico as well as bank fraud announced United States Attorney Robert Pitman, Bureau of Alcohol, Tobacco, Firearms and Explosives - Houston Division Special Agent in Charge Melvin D. King, Jr., and Homeland Security Investigations Special Agent in Charge Vincent Iglio.
United States District Judge Orlando Garcia also ordered that Ybarra pay $133,846.09 restitution for the bank fraud and be placed under supervised release for a period of three years after completing her prison term.
On July 12, 2011, Ybarra pleaded guilty to one count of possession of a machine gun. According to court records, on April 19, 2011, federal authorities arrested Ybarra and 24–year-old Willy Mendoza after they paid $10,000 to an undercover agent and took possession of ten firearms--four fully-automatic machine guns and six semi-automatic assault rifles. Court records also reflect that both Ybarra and Mendoza knew the firearms were going to be taken to Mexico. On October 6, 2011, Mendoza was sentenced to 70 months in federal prison followed by two years of supervised release after pleading guilty to possession of a machine gun.
On February 7, 2012, Ybarra pleaded guilty to one count of conspiracy bank fraud. By pleading guilty, Ybarra admitted that from April 28, 2009 until July 6, 2009, she conspired with others to steal approximately $130,000 by forging signatures of various account holders at the Wells Fargo Bank, Las Palmas branch, in San Antonio.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and ICE Homeland Security Investigations together with the San Antonio Police Department and the United States Secret Service. Assistant United States Attorney Mark Roomberg prosecuted these cases on behalf of the Government.
Federal Jury Convicts Two Syracuse Men for Conspiracy to Import and Distribute Synthetic Drug “molly”Read the Press Release
Syracuse, NY—United States Attorney Richard S. Hartunian today announced that a federal jury has convicted ROSARIO GAMBUZZA (age 48) of East Syracuse, NY and ERNEST SNELL (age 43) of Syracuse, NY, of conspiring to import and distribute a controlled substance analogue, known on the street as “Molly,” in Syracuse, New York between January 2010 and April 2011. GAMBUZZA was also convicted on 19 counts of money laundering in connection with $73,000 dollars he wired to a co-conspirator in Shanghai, China to purchase “Molly,” a designer drug similar to the Schedule I controlled substance, MDMA. Each defendant faces a maximum term of imprisonment of twenty (20) years, up to a $1 million fine, and at least three (3) years of supervised release following any period of incarceration. Sentencing has been scheduled for October 11, 2013 before U.S. District Judge Glenn T. Suddaby.
These prosecutions resulted from an investigation first undertaken in the spring of 2009. Agencies included the Syracuse Resident Office of the Drug Enforcement Administration (DEA), the Internal Revenue Service (IRS)- Criminal Investigation Division (Syracuse Resident Office), the Onondaga County Sheriff’s Office, the Syracuse Police Department, the Department of Homeland Security- HSI, the Onondaga County District Attorney’s Office, the United States Marshals Service, the New York State Police, and the United States Attorney’s Office for the Northern District of New York. The investigation, which included wiretaps on two of the defendants’ telephones, revealed that this drug trafficking organization was responsible for the distribution of over one hundred (100) kilograms of “Molly” during the course of the conspiracy. The “Molly,” manufactured in factories in China, was shipped to distributors in the Syracuse area, as well as other areas in the United States, where it was then distributed to others by members of the conspiracy. The large scale drug trafficking conspiracy, based in Central New York, involved co-conspirators located in Florida, California, Texas, Virginia and elsewhere. Twenty of the twenty-two indicted co-conspirators have been convicted.
United States Attorney Richard S. Hartunian stated “This successful prosecution was brought about through the excellent cooperation of local, state, federal law enforcement agencies working together to combat the influx of ‘designer drugs’ produced by illicit drug manufacturers overseas. I commend theses agencies for their tireless pursuit of those responsible for importing and distributing these drugs on our streets.”
DEA Special Agent in Charge Brian R. Crowell stated, "This investigation of local distributors of the manmade synthetic drug called 'molly,' led our investigators to China on an international conspiracy and 22 federal indictments. DEA and our local, state, federal and international law enforcement partners identified those responsible for peddling this lab-created poison for profit in our communities from the street corner dealer to the source of supply based in China. This investigation and trial unraveled a complex network of 'molly' traffickers. There remains one fugitive attorney Kenneth Feria of Hollywood, California and one fugitive hiding in China named Lei Zhang."1
IRS-Criminal Investigation Special Agent in Charge Toni Weirauch said, “These convictions are significant as they send a strong message to those who are contemplating entering this emerging area of the illegal drug industry and bringing these toxic substances to our communities. Moreover, this investigation and trial highlight to the public – especially to our youth – how dangerous bath salts are. IRS-Criminal Investigation remains committed to working with our law enforcement partners in the fight against all kinds of illegal drugs.”
The case was prosecuted by Assistant U.S. Attorneys Carla Freedman and John G. Duncan. Further questions or inquiries may be directed to Assistant United States Attorney Carla Freedman at (315) 448-0672.
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1As to these defendants, the indictment contains only allegations and the defendants are presumed innocent until and unless proven guilty in a court of law.
Federal Judge in Houston Hands Down 14-Year Sentence in Firearms ConspiracyRead the Press Release
HOUSTON - Tyrone Reid, 22, a citizen of Dominica residing in Houston, has been ordered to prison following his conviction in a conspiracy involving numerous co-defendants who lied to federal firearms dealers in the purchase of firearms, United States Attorney Kenneth Magidson announced today. Reid was convicted Feb. 19, 2013, after three days of trial and approximately two hours of deliberation.
Today, U.S. District Judge David Hittner, who presided over trial, handed Reid a 168 month sentence - 60 months for the conspiracy conviction as well as 60 and 48 months on each of the two convictions of making false statements to a federal firearms licensee. All counts are to run consecutive to each other for a total sentence of 14 years in federal prison. At the hearing today, Judge Hittner found Reid to be connected to known drug traffickers in the Virgin Islands and the most culpable in this criminal conspiracy. In handing down the sentence, Judge Hittner also ordered that Reid, not a U.S. citizen, to be immediately deported following completion of his prison sentence.
“The sentencing today sends a clear message that Illegal firearms trafficking will not be tolerated,” said Magidson. “We will continue to make every effort to prevent the illicit flow of firearms in our country.”
The case began when officers of Homeland Security Investigations (HSI) and the Virgin Islands Police Department (VIPD) executed a search warrant at the home of a known drug dealer in the Virgin Islands which resulted in the discovery of drugs and several firearms. These firearms were found to have been purchased by individuals in Houston at Reid’s direction.
The evidence presented at trial demonstrated Reid would induce others to claim they were the actual buyer of the firearms, even though he supplied the money and immediately took possession from the buyer. Testimony revealed that none of the purported buyers kept any of the firearms they purchased, many which were later found in crime scenes, both in the continental United States and in the Virgin Islands.Western Union receipts sent from the Virgin Islands to the United States reflected more than $60,000 in payments received by Reid or at his direction. Further, three of the firearms were recovered by agents in a search at the home of one of Reid’s associates, who was also linked to some of the money sent to the Virgin Islands to Reid here in Houston. Evidence demonstrated that a total of seven firearms were seized in the Virgin Islands, six of which were seized from crime scenes, including a homicide. Two other firearms associated with this conspiracy were found in New Jersey crime scenes, including an aggravated armed robbery.
Testimony revealed that more than 30 firearms were identified with this lying and buying conspiracy.
Reid’s grandmother, who had traveled to Houston to testify, told the jury that Reid had sent guns to her in the Virgin Islands. Reid took the stand on his own behalf and then called his grandmother a liar.
Reid will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Reid’s co-conspirators in Houston and another in the Virgin Islands were all also convicted and sentenced for their roles in the scheme.
“The successful resolution to this case would not have occurred without the outstanding inter-agency cooperation of HSI, VIPD, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Customs and Border Protection, Houston Police Department - Major Offenders, Harris County Sheriff’s Office and the U.S. Postal Service,” Magidson said. “By working together, we could ensure the investigation progressed and five people were ultimately held accountable for their criminal actions.”Assistant United States Attorneys Joe Magliolo and Megan Paulson prosecuted the case.
Erie Felon Charged with Illegally Possessing WeaponRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Gerod Maurice Jarrett, 32, as the sole defendant.
According to the indictment presented to the court, Jarrett possessed a firearm while being a convicted felon.
According to Mr. Hickton, this case is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
The law provides for a maximum total sentence of life in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christine A. Sanner is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Erie Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Eagle Butte Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota man convicted of Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury was sentenced on May 13, 2013 by U.S. District Judge Roberto A. Lange.
Leon Farlee, age 40, was sentenced to 60 months in custody, 2 years of supervised release, $127,716.74 in restitution, and a $200 special assessment to the Federal Crime Victims Fund.
Farlee was indicted by a federal grand jury in April 2012. He was convicted following a jury trial in Pierre on February 22, 2013. The conviction arose out of an unlawful assault that occurred in Eagle Butte in March 2012, when the defendant assaulted a 62-year-old man from Dupree, by hitting and kicking him with cowboy boots, which caused serious bodily injury to the victim.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. The case was prosecuted by Assistant U.S. Attorney Mikal Hanson. Farlee was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.
Drug Trafficking Conspirator Sentenced to Life in PrisonRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a former Bethlehem man who participated in a Carbon County-based drug trafficking conspiracy, was sentenced today to serve life in prison by Senior United States District Court Judge James M. Munley.
According to United States Attorney Peter J. Smith, the defendant Krishna Mote, age 43, was convicted after a three-day jury trial in December 2012 of conspiracy to distribute more than 280 grams of crack cocaine and more than 500 grams of cocaine, and distribution of crack cocaine as an aider and abettor.
Mote was indicted by a federal grand jury in June 2011, as a result of an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police in Carbon County. The drug conspiracy operated in the Lehighton and Weissport area from late 2005 through April 2007. Evidence presented at trial proved that Mote and his co-conspirators used the residences of several local drug users to distribute crack cocaine and cocaine to numerous customers.
The court noted that Mote’s two prior drug trafficking convictions triggered a federal statute that mandated the imposition of a life sentence. Judge Munley also ordered that Mote pay a $200 special assessment.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Dorchester Man Sentenced for Mortgage Fraud and Identity TheftRead the Press Release
BOSTON – A Dorchester man was sentenced yesterday for operating a mortgage fraud scheme to sell his own home and to buy other residential properties.
Peterson Cherimond, 36, was sentenced by U.S. District Judge George A. O’Toole to 87 months in prison, followed by one year of supervised release and ordered to pay $2.2 million in restitution to six mortgage lender victims. In July 2012, Cherimond pleaded guilty to nine counts of wire fraud and three counts of money laundering. In October 2012, he pleaded guilty to four additional counts of wire fraud, seven counts of identity fraud and two counts of aggravated identity theft.
Cherimond recruited co-defendants Judy Bonas and Allison Gates to use stolen identities for the purpose of obtaining fraudulent mortgage loans aggregating more than $3.8 million for seven properties in Brockton, Mattapan, Halifax and Worcester. Cherimond provided Bonas and Gates with bogus identification documents and paid them $1,500 to $3,000 per property to pose as the purported buyers at mortgage loan closings in order to obtain the fraudulent loan proceeds for Cherimond and others.Bonas pleaded guilty and was sentenced in February 2013 to six months in prison, followed by two years of supervised release. Gates pleaded guilty and was sentenced in March 2013 to six months in prison, followed by two years of supervised release.
United States Attorney Carmen M. Ortiz, Kevin Niland, Inspector in Charge for the U.S. Postal Inspection Service, and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today.
The case was prosecuted by Assistant U.S. Attorneys Victor A. Wild of Ortiz’s Economic Crimes Unit and Brian Perez-Daple of Ortiz’s Civil Division.
District Man Sentenced to More Than 13 Years in Prison for Armed Robbery and Other Charges in 2012 Attack-Defendant Robbed Victim in Northwest Washington After Asking Her for Directions-Read the Press Release
WASHINGTON – Anthony Butler, 51, of Washington, D.C., was sentenced today to 13 years and 10 months in prison on charges stemming from the armed robbery of a woman last fall in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Butler was found guilty in March 2013 by a jury in the Superior Court of the District of Columbia on charges of armed robbery, carrying a dangerous weapon, felony threats, and possession of an open container of alcohol. He was sentenced by the Honorable A. Franklin Burgess, Jr. Butler, who has previous convictions for robbery, carjacking and other crimes, is to be placed on five years of supervised release following his prison term. In announcing the sentence, Judge Burgess indicated that he wanted to keep Butler off the streets and keep the citizens of the District of Columbia safe. Butler also faces parole revocation.
According to the government’s evidence, the attack took place about 8 p.m. on Oct. 27, 2012, near the National Zoo. The victim was walking alone near Adams Mills Road and Walbridge Place NW, headed to a friend’s house for a dinner party, when Butler saw her. He got out of a large red pick-up truck that was blocking her path and pretended to ask for directions.
Butler quickly grabbed the woman’s arm, thrust a knife up to her stomach, and demanded her phone and purse. After he got those items, he demanded her necklace. When she couldn’t get her necklace off fast enough, Butler yelled at her to take it off or he would kill her. After robbing her, he told her to run in the opposite direction and again threatened her if she didn’t comply.
Butler then took off in the pick-up truck. The victim was left on the side of the street without a phone, any money, and the keys to her house. She ran down the street and flagged down a motorist who allowed her in his car, and together they called 911. About 10 minutes later, officers with the Metropolitan Police Department’s Robbery Intervention Program spotted a truck matching the description of the one Butler was using near a gas station at Georgia and Missouri Avenues NW. Officers found the victim’s belongings spread around the truck; Butler had a knife. The victim identified Butler and the knife. He was arrested. At the Fourth District Police Station, the woman’s identification was found in his pocket. At trial, Butler argued that he had merely found the purse on the side of the road.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case from the MPD. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Debra McPherson, Litigation Technology Specialist Paul Howell, and Victim/Witness Advocate Jennifer Clark. Finally, he praised the work of Assistant U.S. Attorney Natalia Medina, who investigated and prosecuted the case.
13-170District Man Pleads Guilty to Voluntary Manslaughter While Armed in 1995 Slaying in Northwest Washington-Defendant Admits Shooting Victim, A Friend, Then Fleeing the Scene-Read the Press Release
WASHINGTON – Maurice Fair, 35, of Washington, D.C., pled guilty today to a charge of voluntary manslaughter while armed in a slaying that took place in 1995 at an apartment in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Fair pled guilty in the Superior Court of the District of Columbia. The plea agreement, which is contingent upon the Court’s approval, calls for a 10-year prison term. The Honorable Herbert B. Dixon, Jr. scheduled sentencing for July 16, 2013.
According to the government’s evidence, the victim, James W. Belton, 18, was fatally shot on Oct. 5, 1995. Fair, who was then 17, had gone to Mr. Belton’s apartment, in the 1400 block of Sheridan Street NW, to smoke marijuana. While there, he shot Mr. Belton twice in the head with a .38-caliber revolver, causing Mr. Belton’s death. At the time of the murder, no arrests or leads were developed linking the defendant to the slaying.
On July 4, 2004, Fair approached police and told them he had set his mother’s house on fire. He was transported to a hospital for a mental health evaluation. While at the hospital, the defendant, spontaneously, told hospital staff that he shot and killed a man eight years earlier with a .38-caliber gun. He was not arrested for the homicide at that time.
Fair was arrested and interviewed on Oct. 23, 2007 by detectives from the Metropolitan Police Department (MPD) in relation to the death of Mr. Belton. He told police that while visiting Mr. Belton on Oct. 5, 1995, he became paranoid and thought that Mr. Belton and another individual (who was not present) were going to rob and hurt him. He subsequently shot Mr. Belton in the head. At the time that Mr. Belton was shot, he was seated on a couch, unarmed, and had not done anything to suggest to Fair that he was going to rob or hurt him. After the shooting, Fair left the scene on a bicycle.
In announcing the guilty plea, U.S. Attorney Machen praised the work of the MPD detectives and officers who investigated the case. He also acknowledged the effort of those who worked on the case from the U.S. Attorney’s office, including Paralegal Specialist Kelly Blakeney, and Victim/Witness Advocate Marcia Rinker. Finally, he praised the work of Assistant U.S. Attorneys Ed Burley, who indicted the case, Steve Snyder, who worked on the investigation, and Cynthia G. Wright, who is prosecuting the matter.
13-171Dewey County Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Dewey County man convicted of Assault Resulting in Serious Bodily Injury was sentenced on May 13, 2013 by U.S. District Judge Roberto A. Lange.
Norman Little Shield, Jr., age 21, was sentenced to 27 months of custody, 1 year of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Little Shield, Jr., was indicted by a federal grand jury on November 15, 2012 for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury. He pled guilty to Assault Resulting in Serious Bodily Injury on February 25, 2013.
The conviction arose from an incident that occurred in July 2012 when Little Shield, Jr., assaulted an adult male in Cherry Creek, South Dakota.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. The case was prosecuted by Assistant U.S. Attorney Mikal Hanson.
Little Shield, Jr., was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.
Deported Honduran Facing Immigration ViolationRead the Press Release
ERIE, Pa. - A former resident of Yoro, Honduras has been indicted by a federal grand jury in Erie on a charge of violating federal immigration laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Mario Roberto Villatoro-Castro, 38, as the sole defendant.
According to the indictment presented to the court, on or about April 12, 2013, Villatoro-Castro was found to be unlawfully present within the United States. Villatoro-Castro had been previously ordered deported and removed from the United States on July 22, 2002 and was removed from the United States on August 8, 2002. The defendant subsequently reentered the United States, and was found to be present in this country without the permission from either the Attorney General of the United States or the Secretary of the Department of Homeland Security.
The law provides for a maximum total sentence of 2 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christine A. Sanner is prosecuting this case on behalf of the government.
The Kirtland Hills, Ohio Police Department and the Bureau of Customs and Border Protection conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Defendants Sentenced to Prison for Stealing over 500 Pounds of Copper Wire from the Railroad Tracks in Northern NevadaRead the Press Release
RENO, Nev. - Two of three defendants charged with stealing 520 pounds of copper wire from the railroad track power lines near Wells, Nev. in July 2011, causing approximately $5,000 in damage and disabling the railroad signal system, have been sentenced to 1½ years in federal prison and ordered to pay $4,960 in restitution to the Union Pacific Railroad, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Allison Peters, 45, and Timothy Neal Bevel, 54, of Boise, Idaho, were sentenced in Reno on Monday, May 13, 2013, by U.S. District Judge Robert C. Jones. A third defendant, Theron Andrew Peters, 49, also of Boise, Idaho, is scheduled to be sentenced by Judge Jones on June 10, 2013. They all pleaded guilty in January 2013 to one count of unlawful damage and impairment of a railroad signal system.
“The theft of copper wire from the power lines disables the train signal system and interferes with train communications,” said U.S. Attorney Bogden. “These thefts are extremely dangerous and can jeopardize motorists and train occupants. Train operators may not receive information about hazards on the tracks or about other trains, leading to possible collisions between trains.”
The Union Pacific/Amtrak signal system runs parallel to the train tracks used by both train companies. According to the court records, on July 25, 2011, at approximately 2:30 a.m., the Union Pacific Railroad detected a signal line problem near the Tobar Township south of Wells, Nev. A railroad signal maintainer traveled to the location, and found railroad power lines hanging down near the tracks and estimated that about five pole lengths of wire had been stolen. The defendants were arrested several hours later following a high speed chase that ended when the truck the defendants were traveling in got stuck in the desert. The stolen copper wire, glass insulators, and bolt cutters were found discarded along the chase route.
ECSO deputies later obtained and executed a search warrant for the truck and recovered gloves, binoculars, topographical maps of Idaho and Nevada, five cell phones, a digital camera, a police scanner, a spotlight, several sales receipts for the sale of copper wire to various recycling centers, a global positioning unit, a bolt cutter, a compass, and a laptop computer. A search of the laptop computer revealed numerous files relating to copper, scrap metals, aerial photographs and a scrap metals composite index. The recovered wire totaled 520 pounds.
The investigation was conducted by the FBI and Elko County Sheriff’s Office, and the case was prosecuted by Assistant United States Attorney Brian L. Sullivan.DeKalb and Sterling Doctor and His Wife Charged with Illegally Dispensing Prescription Drugs and Income Tax FraudRead the Press Release
ROCKFORD C A DeKalb, Ill. doctor and his wife were arrested today on charges of illegally dispensing controlled substances and federal income tax fraud. RICHARD H. NG, 61, a doctor of osteopathic medicine, and President and sole shareholder of Sauk Medical Clinic with offices located in Sterling and DeKalb, Ill., was charged by a federal grand jury in Rockford yesterday in an 89 count indictment, including one count of conspiracy to dispense controlled substances outside the course of professional practice and without a legitimate medical purpose, 81 counts of dispensing controlled substances outside the course of professional practice and without a legitimate medical purpose, and 7 counts of income tax fraud. LEE LEE FOONG, 54, also known as “Audrey,” who was married to Ng, was charged with one count of conspiracy to illegally dispense controlled substances outside the course of professional practice and without a legitimate medical purpose, 5 counts of dispensing controlled substances outside the course of professional practice and without a legitimate legal purpose, and one count of income tax fraud.
According to the indictment, Ng owned and operated the Sauk Medical Clinic, and Foong was the office manager for the Clinic. Beginning in January 2007 and continuing through October 2011, Ng and Foong allegedly dispensed Oxycodone, Methadone, Morphine, and other prescription pain medications outside the course of professional practice and without a legitimate medical purpose, the dispensation of which in some cases resulted in death and other bodily injuries. During the course of the conspiracy, Ng saw patients at Sauk Medical Clinic’s offices in Sterling and DeKalb on at least a monthly or bi-weekly basis to dispense large quantities of prescription controlled substances. The indictment alleges Ng failed to conduct adequate medical evaluations, increased the dosage amounts, and required patients to return frequently to Ng to obtain excessive amounts of the controlled substances. According to the indictment, Ng continued to issue prescriptions despite obvious “red flags” that his patients were abusing or misusing the controlled substances. The indictment alleges that Ng continued to prescribe excessive amounts of controlled substances knowing that these dispensations resulted in the death of three of his patients.
The indictment also alleges that Ng filed false U.S. corporate income tax returns for Sauk Medical Clinic for 2008–2010, knowing the returns underestimated gross receipts of Sauk Medical Clinic by a total of $922,850 over those years, which would have resulted in additional federal income tax due of $320,738. It is further alleged that false federal individual tax returns were filed by Ng for the calendar years 2008–2010, and by Ng and Foong for 2011, the year they were married, which failed to report a total of $1,256,486 in cash received from Sauk Medical Clinic and rental receipts. The indictment charges that the unreported income would have resulted in additional federal income tax due of $270,873.
Depending on the controlled substance involved, each charge of illegally dispensing a controlled substance carries a maximum penalty from up to 5 years in prison to a maximum penalty of life imprisonment in cases of death or serious bodily injury, in addition to a fine ranging from $250,000 to $1 million. Each count of filing a false income tax return carries a maximum penalty up to 3 years in prison, or a fine of up to $100,000 for an individual ($500,000 for a corporation), or both, as well as the costs of prosecution. If convicted, the Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. Each defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The arrests were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Jack Riley, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration; and James C. Lee, Special Agent-in-Charge of the Chicago Field Office of the Internal Revenue Service - Criminal Investigation Division. The Sterling, Ill. Police Department assisted in the investigation.
“Those in the medical profession, like Dr. Ng and his wife, who allegedly abused their position of trust and prescribe drugs without any legitimate medical purpose, will be prosecuted to the fullest extent of the law,” said Jack Riley, Special Agent-in-Charge of the Chicago Field Division.
The government is being represented by Assistant U.S. Attorney Scott R. Paccagnini.
Indictment
Danielson Man Pleads Guilty to Federal Child Pornography Distribution ChargeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that DANIEL CARRIER, 34, formerly of Danielson, waived his right to indictment and pleaded guilty today before United States Magistrate Judge Donna F. Martinez in Hartford to one count of receipt and distribution of child pornography.
According to court documents and statements made in court, on March 6, 2012, law enforcement officers searched CARRIER’s residence and seized a desktop computer and related components. A forensic search of the computer revealed more than 850 images and 187 videos of child pornography, including numerous images of children under the age of 12 engaged in sexually explicit conduct, and images of children engaging in sadistic or masochistic conduct.
CARRIER has been released on a $250,000 bond since his arrest on March 7, 2012. As a condition of his release, CARRIER is residing with family members in Rhode Island.
CARRIER is scheduled to be sentenced by Chief United States District Judge Alvin W. Thompson on August 6, 2013, at which time CARRIER faces a maximum term of imprisonment of 20 years and a fine of up to $250,000.
This matter was investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies, including the Connecticut State Police. The case is being prosecuted by Assistant United States Attorney Felice M. Duffy.
The Connecticut Child Exploitation Task Force, which is housed at the main FBI office in New Haven, investigates crimes against children occurring over the Internet, and provides computer forensic review services for participating agencies. For more information about the Task Force, or to report child exploitation crimes, please contact the FBI at 203-777-6311.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Crosby Felon Pleads Guilty to Possessing A Pistol and DrugsRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a 32-year-old felon from the northern Minnesota community of Crosby pleaded guilty to possessing a .40-caliber, semi-automatic pistol along with approximately 30 grams of methamphetamine. Zachari Allen Kozar pleaded guilty to one count of being a felon in possession of a firearm and one count of possession with intent to distribute methamphetamine. Kozar, who was charged on May 14, 2013, entered his plea before United States District Court Judge Ann D. Montgomery.
In his plea agreement, Kozar admitted that on December 26, 2012, officers stopped Kozar for a traffic violation while he was near Brainerd, Minnesota, and later found the loaded handgun and drugs under the vehicle’s front passenger seat.
According to a law enforcement affidavit filed in the case, authorities began observing Kozar in the fall of 2012 as part of a drug trafficking investigation. During the December 26 stop, Kozar became agitated when a drug-sniffing canine was brought to the scene. The dog alerted police to a controlled substance. Police subsequently executed a search warrant on the vehicle, finding the loaded .40-caliber Steyr Mannlicher firearm in a nylon gun holster. They also recovered a second .40 caliber magazine, a plastic baggy containing approximately 2.8 grams of crack cocaine, as well as ten baggies of various amounts of methamphetamine and crack cocaine totaling approximately 32.1 grams. Kozar was arrested shortly afterward. Approximately $896 in U.S. currency was also found on his person.
Because he is a felon, Kozar is prohibited under federal law from possessing a firearm or ammunition at any time. His prior convictions in St. Louis County include two counts of theft of a motor vehicle (1999), fleeing police in a motor vehicle (1999 and 2004), third-degree burglary (1999), damage to property (1999), escape from custody (2001), fifth-degree drug possession (2004 and two counts in 2008), and third-degree drug possession (2009) . Because some of those convictions constitute crimes of violence, Kozar is subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in prison for anyone subsequently convicted in federal court for being a felon in possession of a firearm or ammunition.
For his crimes, Kozar faces a potential maximum penalty of life in prison on the gun charge and 40 years for drug possession. Judge Montgomery will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Lakes Area Drug Investigative Division, the Minnesota Bureau of Criminal Apprehension, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Allen A. Slaughter.Couple Indicted for Sex Trafficking of A JuvenileRead the Press Release
Defendants Allegedly Ran Their Operation from a Buckhead Home
ATLANTA - Steven E. Thompson and Tierra Michelle Waters have been indicted by a federal grand jury on charges of sex trafficking of a juvenile and conspiring to do the same.
“These defendants preyed on a young girl in need requiring her to have sex with men if she wanted to keep a roof over her head,” said United States Attorney Sally Quillian Yates. “Trafficking children is appalling and unacceptable. With the help of our partners in the community, we will press on with efforts to reach those who are being exploited, and prosecute those who choose to engage in this inhumane practice.”“Forced prostitution, especially in the case of children, is a crime that leaves scars long after any physical wounds have healed,” said Brock D. Nicholson, Special Agent in Charge of ICE Homeland Security Investigations in Atlanta. “Thanks to the hard work of HSI special agents, investigators from the Georgia Bureau of Investigation and prosecutors from the U.S. Attorney’s Office, these defendants will be held accountable for their actions before the law.”
According to United States Attorney Yates, the charges and other information presented in court: Thompson, 42, and Waters, 30, both of Atlanta, Ga., offered the young girl a place to stay at Thompson’s condominium in the Buckhead area of Atlanta. After the young girl moved in, she was told that she had to earn money for rent, and that she would be required to engage in prostitution. Thompson and Waters placed advertisements describing the juvenile on Backpage.com, soliciting men to have sex with the young girl either at the condominium or at a place the customer chose. Some advertisements falsely listed the juvenile as “Sasha” age 19, when in fact she was 17. Other advertisements showed both Waters and the juvenile, under the name “Naomi”, age 20, requesting a “donation” of $150 an hour. Thompson and Waters also provided marijuana to the juvenile before she had to perform commercial sex acts.
The indictment charges two counts, one substantive count of sex trafficking of a juvenile by force, fraud or coercion and one count of conspiracy to engage in sex trafficking. The victim is identified in the indictment by her initials. Each charge carries a maximum sentence of life in prison and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders. Thompson is scheduled for a bond hearing on May 21, 2013 at 11:00 a.m. before United States Magistrate Judge Linda T. Walker. Waters is scheduled for arraignment on May 31, 2013 at 10:00 a.m. before United States Magistrate Judge Alan J. Baverman.This case is being investigated by Special Agents of the Department of Homeland Security and the Georgia Bureau of Investigation.
Assistant United States Attorneys Susan Coppedge and Leslie Abrams are prosecuting the case.
Members of the public are reminded that the indictment contains only allegations. A defendant is presumed innocent of the charges and it will be the government’s burden to prove a defendant's guilt beyond a reasonable doubt at trial.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Convicted Felon Who Hid A Firearm in Midst of Police Chase Changes Plea to Guilty on Day Scheduled for TrialRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today before United States District Judge Louise W. Flanagan, ANTHONY EARL RIVERS, 25, of Dudley, North Carolina changed his plea from “not guilty” to “guilty” on a charge of Possession of a Firearm by a Convicted Felon in and Affecting Commerce, in violation of Title 18, United States Code, Sections 922(g) and 924.
On May 4, 2012, the Mt. Olive Police Department received a tip from a confidential informant that RIVERS, operating under the alias of “Worm”, had just been seen driving another individual who had been involved with an assault with a firearm on Claytor Street in Mt. Olive. The Mt. Olive Police Department immediately began to look for RIVERS and the individual who was reported to have committed the assault using a firearm. Officers located RIVERS and the other individual a few blocks away on Slocum Street and attempted a traffic stop. As soon as RIVERS pulled into a driveway the passenger jumped out of the vehicle and ran on foot. Mt. Olive police immediately gave foot chase, leaving RIVERS momentarily alone in the driver’s seat of his car.
RIVERS’ actions when he was alone in the car were captured on the exterior video camera of a Mt. Olive police cruiser. The video showed RIVERS quickly exiting his vehicle and leaning down into a bush located within a few feet of the car. By the time other officers arrived on the scene RIVERS was already attempting to drive away. RIVERS was stopped by other officers before he could leave.
Officers canvassed the area of the chase but were not able to locate a firearm. After searching the vehicle and discovering no firearm, RIVERS was allowed to leave the scene. Within minutes, however, officers discovered the firearm, an Armscor, model Citadel, .45 caliber semi-automatic pistol, located in the bush adjacent to the car. Officers immediately left the scene, found RIVERS, and took him into custody. While RIVERS initially denied knowledge of the firearm, he later made statements admitting that he had “stashed” the firearm.
At the sentencing in this case, which is presently scheduled for the August term of court in New Bern, RIVERS faces up to ten years of imprisonment, up to $250,000 in fines, and as much as three years of supervised release. RIVERS was previously detained as a danger to the community, and will therefore be held in custody until the time of his sentencing.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) with the assistance of the Mt. Olive Police Department. Assistant United States Attorney William M. Gilmore is prosecuting the case.
Colchester Man Who Possessed Fake U.S. Marshals Service Badge Is SentencedRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JOHN W. CARROLL, 42, of Colchester, was sentenced today by United States Magistrate Judge Joan G. Margolis in New Haven to three years of probation for his unauthorized possession of an imitation United States Marshals Service badge. CARROLL pleaded guilty to the offense on February 20, 2013.
According to court documents and statements made in court, on October 9, 2012, CARROLL possessed a fake U.S. Marshals Service badge that was substantially similar to an authentic badge, and two fake U.S. Marshals Service identification cards.
This matter was investigated by the United States Marshals Service and state and local law enforcement agencies. The case was prosecuted by Special Assistant United States Attorney Anjna R. Kapoor and Assistant United States Attorney David E. Novick.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Cherry Creek Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Cherry Creek, South Dakota man convicted of Assault by Striking, Beating and Wounding was sentenced on May 13, 2013 by U.S. Magistrate Judge Mark A. Moreno.
Joshua Hale, age 22, was sentenced to 5 months in custody and a $10 special assessment to the Federal Crime Victims Fund.
Hale was indicted by a federal grand jury on November 15, 2012 for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury. He pled guilty to Assault by Striking, Beating and Wounding on January 18, 2013.
The conviction arose from an incident that occurred in July 2012 when Hale assaulted an adult male in Cherry Creek, South Dakota.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. The case was prosecuted by Assistant U.S. Attorney Mikal Hanson.
Hale was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.
Charleston Pedophile Sentenced to 10 Years in Federal PrisonRead the Press Release
U.S. Attorney’s initiative to fight child exploitation has surpassed 1,000 months of total prison time for convicted pedophiles since January 2012
CHARLESTON, W.Va. –U.S. Attorney Booth Goodwin announced that a 54-year-old Charleston pedophile was sentenced on May 15 to ten years in federal prison on child pornography charges. Jonathan Douglas Layne’s prison sentence will be followed by 20 years of supervised release for possessing child pornography. The sentence was handed down by United States District Judge John T. Copenhaver, Jr. Layne previously pleaded guilty in January.
Layne collected more than 600 pictures and videos of children having sex or performing sexual acts. Layne lived in St. Albans, West Virginia, at the time the crime occurred.
“Pedophiles who download and share child pornography are exploiting children, plain and simple,” said U.S. Attorney Goodwin. “My office will continue to spare no effort in prosecuting these types of cases.”
In October 1987, Layne committed two or more crimes involving sexual abuse of a minor. Layne was previously convicted in June 1989 in the Circuit Court of Kanawha County, West Virginia, of first degree sexual abuse involving a minor.
Since January 2012, twenty-two defendants have been convicted as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Twenty defendants have been sentenced to a total of more than 90 years (1093 months, to be exact) in federal prison. The remaining two defendants currently await sentencing.
The U.S. Marshals Service, the West Virginia State Police, the West Virginia State Police Internet Crimes Against Children Task Force, the Kanawha County Sheriff’s Department, and the Federal Bureau of Investigation West Virginia Cyber Crimes Task Force conducted the investigation. Assistant United States Attorney Lisa Johnston handled the prosecution.
Chadbourn Man Sentenced for Carjacking and Firearm ChargersRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever III, sentenced JOHN MOORE, 22, to 360 months imprisonment followed by five years supervised release. Due to MOORE’s extensive and violent criminal history and the violent acts involving this case, the Court varied upward in imposing the sentence.
A Federal Grand Jury returned a three-count Criminal Indictment on December 14, 2010 charging MOORE. On November 27, 2012, a jury convicted MOORE of carjacking, in violation of Title 18, United States Code, Section 2119, and possession of a firearm in furtherance of a federal crime of violence, in violation of Title 18, United States Code, Section 924(c). On November 26, 2012, a change of plea hearing was conducted prior to the trial’s commencement when MOORE, pled guilty to the third count of the Indictment which charged felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1).
According to evidence presented at trial, on March 1, 2010, MOORE broke into a residence in Evergreen, North Carolina. The victim arrived home with the victim’s two-year-old grandchild, parking in the driveway. The victim left the grandchild in the car and approached the residence. The door frame was broken and the door had been opened. As the victim entered the residence, MOORE was observed inside the home. MOORE forced the victim to the ground at gunpoint, putting a gun to the victim’s head, he then dragged the victim around the home by the hair, pulling the victim into a bedroom and duct-taping the victim’s hands and face. MOORE demanded money and the victim told MOORE the money was in the car. MOORE dragged the victim outside and they encountered the family dog. At that point, MOORE shot and killed the dog and dragged the victim back inside the house. MOORE then threw the victim into a closet and ordered the victim not to leave. A few minutes later, MOORE opened the door and put the grandchild inside the closet with the victim. The victim could hear MOORE going room to room. Before he left, MOORE threatened to kill the victim and the family. The victim waited for about 30 minutes and then came out and saw that the family car was gone. MOORE had also stolen cash and other items from the victim’s home.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cumberland County Sheriff’s Office, and the Columbus County Sheriff’s Office. Assistant United States Attorneys Jane J. Jackson and Toby Lathan prosecuted the case.
Cass Lake Felon Pleads Guilty to Possessing A .357 RevolverRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 25-year-old Cass Lake felon pleaded guilty to possessing a .357-caliber revolver. Anthony Duane Howard pleaded guilty to one count of being a felon in possession of a firearm. Howard, who was indicted on March 12, 2013, entered his plea before United States District Court Judge Joan N. Ericksen.
In his plea agreement, Howard admitted that on December 1, 2012, he possessed the revolver near a residential complex on Cedar Avenue in south Minneapolis. When police arrived, Howard discarded the firearm, which was later recovered. Because he is a felon, Howard is prohibited under federal law from possessing a firearm at any time. His prior Hennepin County convictions include first-degree assault (2003) and fourth-degree assault (2011).
For his crime, Howard faces a potential maximum penalty of ten years in prison. Judge Ericksen will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Minneapolis Police Department, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney LeeAnn K. Bell.The case was charged federally through Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. Then, the Hennepin County Attorney’s Office teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against two dozen serious habitual criminals through Project Exile Minneapolis.
Cantonment Man Sentenced on Child Pornography ConvictionRead the Press Release
PENSACOLA, FLORIDA – Mack S. Varnado, Jr., 32, of Cantonment, was sentenced Tuesday afternoon as a result of his guilty plea on February 7, 2013, to a federal indictment charging him with the receipt and transportation of child pornography. The sentencing was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
On October 13, 2011, a cybertip was reported to the National Center for Missing and Exploited Children (“NCMEC”) that sparked the local investigation. The report documented email messages containing child pornography being transmitted from an America Online (“AOL”) account in the Northern District of Florida. Specifically, on October 12, 2011, AOL detected that an email message was sent from the user “NohassleSN24” to Yahoo! subscriber “[email protected].” The message contained several child sexual exploitation images. Detective Chris Wilkinson, of the Pensacola Police Department, was able to trace this email message to Varnado at his residence in Cantonment, Florida. A total of fourteen illicit images had been sent by Varnado. All of the images depicted minor children between approximately ten and fourteen years old engaged in various sexual activities.
On or about January 13, 2012, Detective Wilkinson obtained a warrant to search the email account hosted by AOL, located in Dulles, Virginia. On January 18, 2012, AOL responded that Varnado maintained email messages, both sent and received, which had attachments of child pornography.
All this information led to a federal search warrant on Varnado’s residence in Cantonment. The defendant was present during the execution of the search warrant. Multiple pieces of digital media were seized. A forensic examination of Varnado’s digital media revealed images and videos of child pornography, matches for the screen name [email protected], and matches to those images located in the “sent” mailbox linked to the email account used by Varnado.
Senior United States District Judge Roger Vinson sentenced Varnado to 60 months imprisonment to be followed by 6 years of supervised release. In addition, based upon Varnado sending and receiving child pornography from his residence in Cantonment, Judge Vinson ordered that Varnado forfeit his interest in the residence because it was used to facilitate the online crimes against children. This amounted to Varnado forfeiting $74,000 to the United States government.
In announcing the sentence, U.S. Attorney Marsh said, “Protecting our children from the permanent scars left behind when this kind of exploitation occurs is critically important work. This prison sentence, along with the forfeiture ruling, should send a strong message of deterrence. We have the expertise to responsibly gather the necessary evidence to charge these cases, and the charges when proven beyond a reasonable doubt carry serious penalties under federal law.” She expressed her gratitude to U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Pensacola Police Department for their cooperation, dedication, and expertise in the investigation and prosecution of the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 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, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was prosecuted by Assistant U.S. Attorney David L. Goldberg of the Northern District of Florida.Brothers Plead Guilty to Armed Bank Robbery, Assault on A Federal Officer and Related Firearms OffensesRead the Press Release
DALLAS — This afternoon, Johnny Charles Butler, 45, appeared before U.S. District Judge Jorge A. Solis and pleaded guilty to two counts of armed bank robbery, one count of assaulting a federal officer and one count of using and carrying a firearm during and in relation to a crime of violence. His brother, James Robert Cleveland Butler, 44, pleaded guilty in February 2013 to two counts of armed bank robbery and one count of using, carrying and brandishing a firearm during and in relation to, and possession of a firearm in furtherance of a crime of violence. Both have been in custody since their arrest in August 2012 at their residence in Quinlan, Texas. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
If the Court accepts the terms of the plea agreements, the parties agree that the appropriate term of imprisonment is 35 years in federal prison for Johnny Charles Butler and 25 years imprisonment for James Robert Cleveland Butler.
According to documents filed in the case, both Johnny Butler and James Butler admitted committing the armed, takeover-style robberies of Bank of America, 100 West Highway 80, Forney, Texas, on November 25, 2011 and May 18, 2012.
Johnny Butler also admits firing three shots from a .357 caliber pistol at SWAT agents while they were attempting to execute a federal search warrant at his Quinlan residence on August 2, 2012.
The investigation was conducted by the Safe Street Violent Crime Task Force of the FBI. The case is being prosecuted by Assistant U.S. Attorney Keith Robinson.
Brooklyn, N.Y., Man Charged with Bank RobberyRead the Press Release
NEWARK, N.J. – A Brooklyn, N.Y., man who was arrested in April in connection with a Bergen County bank robbery will make his initial court appearance today, U.S. Attorney Paul J. Fishman announced.
John Edward Stevens, 59, is charged by Complaint with one count of bank robbery and is scheduled to make his initial appearance before U.S. Magistrate Judge Madeline Cox Arleo in Newark federal court today. Stevens was on the FBI’s 10 Most Wanted Fugitives List in 1988 in connection with unrelated robberies.According to documents filed in this case and statements made in court:
On April 15, 2013, Stevens allegedly robbed the TD Bank, located in Oakland, N.J. According to bank employees and video surveillance, a male wearing a blue jacket and a baseball hat entered the bank and approached one of the bank tellers. The robber was carrying a zipper pouch, which he opened and showed the teller. Inside was what appeared to be a black handgun. The robber fled after the teller gave him money.
Approximately 20 minutes after the robbery, law enforcement stopped a vehicle that was reported stolen. The driver of the stolen vehicle was identified as Stevens. Law enforcement arrested Stevens and located a TD Bank bag filled with money in the vehicle.
If convicted of the bank robbery charge, Stevens faces 20 years imprisonment and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation. He also thanked the Waldwick Police Department and the Oakland Police Department for their contribution to the case.The government is represented by Assistant U.S. Attorney Danielle M. Corcione of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Stevens Complaint
Brooklyn, N.Y., Man Charged with Bank RobberyRead the Press Release
NEWARK, N.J. – A Brooklyn, N.Y., man who was arrested in April in connection with a Bergen County bank robbery will make his initial court appearance today, U.S. Attorney Paul J. Fishman announced.
John Edward Stevens, 59, is charged by Complaint with one count of bank robbery and is scheduled to make his initial appearance before U.S. Magistrate Judge Madeline Cox Arleo in Newark federal court today. Stevens was on the FBI’s 10 Most Wanted Fugitives List in 1988 in connection with unrelated robberies.According to documents filed in this case and statements made in court:
On April 15, 2013, Stevens allegedly robbed the TD Bank, located in Oakland, N.J. According to bank employees and video surveillance, a male wearing a blue jacket and a baseball hat entered the bank and approached one of the bank tellers. The robber was carrying a zipper pouch, which he opened and showed the teller. Inside was what appeared to be a black handgun. The robber fled after the teller gave him money.
Approximately 20 minutes after the robbery, law enforcement stopped a vehicle that was reported stolen. The driver of the stolen vehicle was identified as Stevens. Law enforcement arrested Stevens and located a TD Bank bag filled with money in the vehicle.
If convicted of the bank robbery charge, Stevens faces 20 years imprisonment and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation. He also thanked the Waldwick Police Department and the Oakland Police Department for their contribution to the case.The government is represented by Assistant U.S. Attorney Danielle M. Corcione of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Stevens Complaint
Brookfield Man Pleads Guilty to Oxycodone Distribution ChargeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that KYLE M. LUTRUS, 27, of Brookfield, pleaded guilty today before United States Magistrate Judge Thomas P. Smith in Hartford to one count of conspiracy to distribute and to possess with the intent to distribute oxycodone.
According to court documents and statements made in court, in late 2011, Brookfield Police received information that LUTRUS was involved in the illegal distribution of oxycodone. Between February 2012 and April 2012, LUTRUS made multiple sales of oxycodone to an individual working with law enforcement and an undercover DEA Task Force officer. A total of 393 pills were purchased from LUTRUS during the course of the investigation.
LUTRUS is scheduled to be sentenced by United States District Judge Vanessa L. Bryant on August 1, 2013, at which time LUTRUS faces a maximum term of imprisonment of 20 years and a fine of up to $1 million. LUTRUS also has agreed to forfeit $60,000 and his 2005 Honda Accord.
LUTRUS was arrested on December 20, 2012. He is currently released on a $200,000 bond.
This matter is being investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force and the Brookfield Police Department. The case is being prosecuted by Assistant United States Attorneys David X. Sullivan and Michael E. Runowicz.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Bluford Man Charged with Illegally Possessing A FirearmRead the Press Release
Craig L. Fenton, 47, of Bluford, Illinois, has been charged in United States District Court in Benton with being a felon in possession of a firearm, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment, returned by a Federal Grand Jury on May 9th, alleged that Fenton was found to be in possession of a loaded .38 special caliber revolver on April 2, 2013, in Wayne County. Prior to that date Fenton had been convicted of two felony offenses, making it illegal under federal law for him to possess firearms or ammunition.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, Fenton faces up to 10 years in prison, a $250,000 fine, and 3 years of supervised release to follow his incarceration. The firearm he illegally possessed is also subject to forfeiture to the United States.
Following a detention hearing held on May 14th, Fenton was denied bond and remanded to the custody of the United States Marshal to await further proceedings. Fenton’s next scheduled court appearance is July 11th at 9:30 a.m. for a final pre-trial conference at the Federal Courthouse in Benton.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and the Wayne County Sheriff’s Department with the assistance of the Bureau of Alcohol, Tobacco, and Firearms.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Bergen County, N.J., Woman Indicted in $2 Million Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – A Bergen County, N.J., woman was indicted today for her role in a long-running, large-scale mortgage fraud scheme that caused millions of dollars in losses, U.S. Attorney Paul J. Fishman announced.
Klary Arcentales, 44, of Lyndhurst, N.J., was charged in a five-count Indictment with one count of conspiracy to commit bank fraud and four counts of bank fraud, all of which caused losses of at least $2 million.
According to the Indictment and other documents filed in this case:
As early as 2006, Arcentales engaged in a mortgage fraud conspiracy through a company called Premier Mortgage Services (PMS). Arcentales, a loan officer at PMS, provided fraudulent documents to financial institutions in connection with mortgage loan applications on behalf of “straw buyers” to induce those financial institutions to fund mortgage loans. Relying upon those false documents, financial institutions funded mortgage loans. Arcentales then profited illegally by receiving a commission from PMS for each mortgage loan that she closed and also profited illegally by diverting portions of the fraudulently-obtained mortgage proceeds for herself.
Conspirator Lester Soto, 56, previously charged by Complaint, was a part-owner of PMS. He also acted as a loan officer on certain PMS mortgage loan applications. Soto took a percentage of PMS’s profits. Soto employed document makers to create fraudulent documents in furtherance of the scheme and put loan officers at PMS, including Arcentales, in contact with these document makers to create other false and fraudulent documents.Conspirator Linda Cohen, 55, previously charged by Complaint, was a paralegal who closed transactions on behalf of a licensed New Jersey attorney. Cohen served as the settlement agent on mortgage loans brokered by Arcentales for various properties. Cohen convened closings, received funds from lenders, and prepared HUD-1 forms – which itemize services and fees charged to borrowers for mortgage loans – that purported to reflect the sources and destinations of funds for mortgages on subject properties. In fact, the HUD-1s were neither true nor accurate. At or following the closings, Cohen disbursed mortgage loan proceeds directly to PMS, herself, and others, including in amounts not reflected on the HUD-1s. Cohen received a fee for each fraudulent loan in which she participated.
Conspirator Antonio Pimenta, 45, previously charged by Complaint, owned and managed Kelmar Construction Co., which built properties that were then sold to straw buyers utilizing fraudulent mortgage loans brokered by Arcentales.
The Indictment charges Arcentales with one count of bank fraud conspiracy and four counts of bank fraud, each punishable by a maximum potential penalty of 30 years in prison and a fine of $1,000,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s charges. Fishman also thanked the Social Security Administration-Office of Inspector General, under the direction of Special Agent in Charge Edward Ryan, for its participation in the investigation.The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the U.S. Attorney’s Office General Crimes Unit and Zach Intrater of the Economic Crimes Unit in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
The charges and allegations contained in the Indictment and Complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.13-200
Defense counsel: Arcentales: Ronald Ricci Esq., Woodland Park, N.J.
Soto: Jeff Smith Esq., of Teaneck, N.J.
Cohen: Brian Daly Esq., of Middletown, N.J.
Pimenta: Linda Foster Esq., Assistant Federal Public Defender, NewarkArcentales Indictment
Attorney General Eric Holder Announces Improvements to the <br /> Public Safety Officers’ Benefits ProgramRead the Press Release
Attorney General Eric Holder and Acting Assistant Attorney General for the Office of Justice Programs Mary Lou Leary announced several improvements to the Public Safety Officers’ Benefits (PSOB) Program following the completion of a comprehensive review of the program ordered by the Attorney General in May 2012.
In the coming months, the PSOB office will move to an entirely paperless electronic case management system that will allow claimants to file and monitor the progress of their claims online, in order to improve efficiency, increase timeliness and reduce duplication in its claims administration process. The PSOB claims process will also be streamlined, consolidating legal and other functions within the Bureau of Justice Assistance (BJA) and eliminating duplicative documentation requirements. As part of the department’s ongoing efforts to improve the PSOB, BJA will continue to convene its series of stakeholder listening sessions in order to ensure transparency and a positive dialogue between the PSOB Office and its public safety partners in the field.
“These fundamental improvements to the Public Safety Officers’ Benefits Program will help us cut through red tape – and ensure that fallen or injured officers and their families can get the benefits they need in a timely manner,” said Attorney General Holder. “These improvements are representative of the value that I, the women and men of the Justice Department, and our entire country, must always place on the work of our law enforcement officers. And it’s emblematic of our commitment to standing with all who bravely serve our nation, especially in the toughest of times.”
“Over the past five years, the PSOB Office has provided more than $426 million in benefits to fallen police officers, firefighters and other first responders, processing more than 2,857 claims,” said Acting Assistant Attorney General Leary. “But we can do even better. These improvements will allow BJA to process cases and serve claimants even more efficiently. We are committed to ensuring that fallen public safety officers and their families get the benefits to which they are entitled under the law in a timely and transparent manner.”Enacted in 1976, the Public Safety Officers’ Benefits Act allows the Justice Department to recognize the ultimate sacrifice of law enforcement officers, firefighters and other first responders killed in the line of duty by providing a federal benefit to their eligible survivors. BJA’s PSOB Office administers the Death, Disability and Educational Assistance Programs; these benefits assist families who may be struggling with finances in the aftermath of tragedy, as well as officers catastrophically injured in the line of duty and spouses and children seeking educational assistance to attend institutions of higher education. The PSOB Office considers it an honor to assist families and agencies of America’s fallen law enforcement heroes throughout the review of their PSOB cases.
The Office of Justice Programs (OJP), headed by Acting Assistant Attorney General Mary Lou Leary, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six components: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking. For more information about OJP please visit: http://www.ojp.gov. To read the Attorney General’s speech at the 25th Annual National Law Enforcement Officers Memorial Candlelight Vigil, please visit: http://www.justice.gov/iso/opa/ag/speeches/2013/ag-speech-130513.html.
Arizona Woman Pleads Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Lauren Christine Nunez, 20, of Tucson, Ariz., pleaded guilty this afternoon in Las Cruces federal court to methamphetamine trafficking charges under a plea agreement with the U.S. Attorney’s Office. Her co-defendant Kevin James Fitzgerald, 19, also of Tucson, pleaded guilty to the same methamphetamine trafficking charges on April 16, 2013.
Nunez and Fitzgerald were arrested on the night of Jan. 19, 2013, and charged with methamphetamine trafficking offenses after Border Patrol agents found 9.2 pounds of methamphetamine in a vehicle Nunez was driving and in which Fitzgerald was a passenger at the U.S. Border Patrol checkpoint on New Mexico Highway 26 near Truth or Consequences, N.M. The methamphetamine, which was contained in tin foil and cellophane-wrapped bundles, was discovered after a narcotics canine alerted to the vehicle thus indicating that the vehicle contained controlled substances.
This afternoon, Nunez pleaded guilty to a two-count felony information charging her with conspiracy and possession of methamphetamine with intent to distribute. In entering her plea, Nunez admitted that, in Jan. 2013, Fitzgerald and she agreed to transport methamphetamine from Arizona to Nebraska, where they intended to deliver the drugs to another person. She also admitted that the methamphetamine had been delivered to Fitzgerald and her more than a week before they were arrested on Jan. 19, 2013, and acknowledged responsibility for the methamphetamine found in their vehicle that night.
Nunez was remanded into federal custody after entering her guilty plea. She will remain detained pending her sentencing hearing, which has yet to be scheduled. Fitzgerald also is in federal custody pending his sentencing hearing. At sentencing, Nunez and Fitzgerald each face a mandatory minimum of ten years and a maximum of life in prison on each of the two offenses to which they pleaded guilty.
This case was investigated by the Las Cruces office of the DEA and the Truth or Consequences Border Patrol Station of U.S. Customs and Border Protection, and is being prosecuted by Assistant U.S. Attorney Brock E. Taylor of the U.S. Attorney’s Las Cruces Branch Office.Anchorage Man sentenced to 84 months prison for drug firearm convictionRead the Press Release
Anchorage, Alaska B U.S. Attorney Karen L. Loeffler announced today that a resident of Anchorage was sentenced in federal court in Anchorage for possession of controlled substances with intent to distribute and being a felon in possession of a firearm.
Paul Baldwin, 22, from Anchorage, Alaska, was sentenced yesterday by U.S. District Court Judge Timothy M. Burgess. Baldwin received a sentence of 84 months prison and three years of supervised release. Baldwin had previously pled guilty to an indictment charging him with one count of possession of controlled substances with intent to distribute and one count of felon in possession of a firearm and ammunition.
According to Assistant U.S. Attorney Kelly Cavanaugh, who prosecuted the case, in November 2012, while driving toward Fairbanks, Baldwin was pulled over by the Alaska State Troopers (AST) for speeding near Talkeetna, Alaska. During a search of the vehicle, the AST found crack cocaine, several grams of powder cocaine, heroin, and several ounces of marijuana in the trunk of the vehicle. The AST also found a loaded .40 caliber pistol inside of a duffle bag. Baldwin had two prior convictions that were punishable by a prison term exceeding one year. The defendant was travelling to Fairbanks to sell the illegal drugs found in the vehicle and it is well known that retail prices for illegal drugs are significantly higher in Fairbanks than in Anchorage.
Prior to imposing a sentence, Judge Burgess said that he was concerned for the safety of the community and that Baldwin put himself, his passenger, and the people he was selling drugs to at risk with his behavior. Judge Burgess also stated that Baldwin was a “young man”, and that if he did not choose a different path after he was released from prison, that he would likely end up spending the rest of his life in prison.
Ms. Loeffler commended the Alaska State Troopers, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives for the investigation leading to the successful prosecution of Baldwin.
Anchorage Man sentenced to 84 months prison for distributing MethamphetamineRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a man from Anchorage, Alaska, was sentenced in federal court for drug conspiracy and distribution of a controlled substance.
Albert Maifea, 36, was sentenced yesterday by U.S. District Court Judge Sharon L. Gleason. Maifea received a sentence of 84 months prison and five years of supervised release. Maifea had previously pled guilty to an indictment charging him with one count of drug conspiracy and one count of distribution of a controlled substance.
According to Assistant U.S. Attorney Kelly Cavanaugh, who prosecuted the case, in July 2012, Maifea distributed 15.7 grams of actual methamphetamine in exchange for $2,900.00. Maifea was in possession of a firearm during the methamphetamine transaction. Later in July 2012, after another sale of methamphetamine by Maifea, law enforcement attempted to apprehend him and Maifea attempted to flee from law enforcement while driving through a busy intersection in Anchorage. His dangerous driving caused several traffic collisions before he was arrested by law enforcement.
Prior to imposing the sentence, Judge Gleason said that the defendant created a risk to the public by fleeing from law enforcement and there was a need to protect the public from future crimes committed by the defendant. Judge Gleason found that Maifea’s drug offense was aggravated due to his carrying a firearm during the transaction and the collisions he caused while attempting to flee.
Ms. Loeffler commended the Alaska State Troopers, the Anchorage Police Department, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives for the investigation leading to the successful prosecution of Maifea.
Alamogordo Man Pleads Guilty to Robbing Bank in Hatch, N.M., in October 2012Read the Press Release
ALBUQUERQUE – Kenneth Morral, 31, of Alamogordo, N.M., pleaded guilty this afternoon to a bank robbery charge and admitted robbing the First New Mexico Bank in Hatch, N.M., on Oct. 19, 2012. Morral entered his guilty plea without the benefit of any plea agreement.
The First New Mexico Bank was robbed in the early afternoon of Oct. 19, 2012, by two men who approached two bank tellers and verbally demanded money. After obtaining money from the bank tellers, the men departed the bank and drove away in a grey colored vehicle. On Oct. 21, 2012, U.S. Customs and Border Protection reported to the FBI the discovery of an abandoned car that matched the description of the getaway car. The FBI found evidence in the vicinity of the vehicle linking it to the bank robbery and a check of the vehicle’s VIN led investigators to Ricky J. Garcia, 48, of Los Lunas, N.M. Garcia was arrested the next day after sources identified him as one of the men who perpetrated the bank robbery. Morral was identified as the other bank robber by a source on Oct. 25, 2012.
Jacleen Lorraine Henderson, 29, also of Los Lunas, assisted Garcia and Morral in the aftermath of the bank robbery after Garcia’s vehicle broke down by arranging for them to be picked up and by using proceeds of the bank robbery to purchase a vehicle and other items. Henderson was arrested on Nov. 1, 2012, and charged with being an accessory after the fact. Morral was arrested in Gallup, N.M., by the McKinley County Sheriff’s Office on Nov. 14, 2012.
Morral has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. On Jan. 15, 2013, Garcia pleaded guilty to bank robbery. Garcia too remains detained pending his yet to be scheduled sentencing hearing. Morral and Garcia each face a maximum penalty of 20 years in prison when they are sentenced. Henderson pleaded guilty to being an accessory after the fact on Jan. 29, 2013. She is detained pending her sentencing hearing and faces a maximum penalty of ten years in prison.
These cases are being prosecuted by Assistant U.S. Attorneys Luis A. Martinez and E. Garreth Winstead of the U.S. Attorney’s Las Cruces Branch Office, and were investigated by the FBI and the Hatch Police Department with assistance from U.S. Customs and Border Protection and the McKinley County Sheriff’s Office.
Accused Las Vegas Mailbox Thieves to Appear in Court TomorrowRead the Press Release
LAS VEGAS, Nev. – Two men accused of stealing checks, credit cards and other items from local mailboxes using counterfeit U.S. Postal Service keys, are scheduled to be arraigned by a federal magistrate judge tomorrow afternoon, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Derrick F. Hutson, 42, and Marshal R. Stapleton, 27, both of Las Vegas, are scheduled to appear at 3:00 p.m. on Thursday, May 16, 2013, before U.S. Magistrate Judge Robert A. McQuaid, Jr. They are charged with conspiracy, possession of stolen mail and unauthorized possession of counterfeit U.S. Postal Service keys.
According to the criminal complaint dated April 23, 2013, United States Postal Service employees recently received reports of several incidents of mail theft in the Summerlin and Northwest areas of Las Vegas. The reports indicated that entire contents of mailboxes had been removed from cluster-type mailboxes, but that no damage had occurred to the mailboxes indicating the use of a counterfeit key. Following an investigation by the U.S. Postal Inspection Service, Hutson and Stapleton were apprehended on April 15, 2013, at approximately 2:20 a.m. while they were sitting in a vehicle parked next to a cluster mail box in a Summerlin-area community. Postal Inspectors recovered from the vehicle counterfeit U.S. Postal Service keys and burglary tools. Postal Inspectors later recovered from their homes, stolen U.S. Postal Service mailbox locks and parts, counterfeit keys, counterfeit identity documents, credit card manufacturing devices, check software, and stolen mail.
The criminal indictment charges that between January and April 23, 2013, Hutson and Stapleton made and possessed counterfeit U.S. Post Office keys which they used to steal checks, gift cards, debit cards, credit cards, and other items from mailboxes in Las Vegas.
If convicted, Hutson and Stapleton face up to five years in prison and a $250,000 fine on the conspiracy and stolen mail charges and up to 10 years in prison and a $250,000 fine on the counterfeit key charges. They are currently in federal custody pending their arraignment tomorrow.
The case is being investigated by the United States Postal Inspection Service and is being prosecuted by Assistant U.S. Attorney Brian Pugh.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
An indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
14 May 2013
Western Minnesota Man Indicted for Distributing and Possessing Child PornographyRead the Press Release
MINNEAPOLIS—A federal indictment unsealed yesterday charges a 62-year-old man from the western Minnesota community of Graceville with distributing and possessing images of child pornography. The indictment, which was filed on May 7, 2013, charges John Rolland Parent with five counts of distribution of child pornography and one count of possession of child pornography. The indictment was unsealed following Parent’s initial appearance in federal court.
The indictment alleges that between March 15, 2011, and September 25, 2011, Parent distributed via a computer visual depictions of minors engaged in sexually explicit conduct. It also alleges that on June 12, 2012, Parent possessed more than 800 images and videos of similar conduct. Authorities found the items on computers, hard drives, and other digital media that they seized during the execution of a state search warrant at Parent’s residence.
If convicted, Parent faces a potential maximum penalty of 40 years in prison on each distribution count, and 20 years on the possession charge. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the Minnesota Internet Crimes Against Children Task Force, the Big Stone County Sheriff’s Office, the Federal Bureau of Investigation, and the Minnesota Bureau of Criminal Apprehension. It is being prosecuted by Assistant United States Attorney Andrew Dunne.
Distribution, and possession of child pornography is against the law. In addition to prosecuting these cases, the Justice Department is funding a study focused on the correlation between involvement in child pornography and hands-on sexual abuse of children. A 2008 study (The Butner Study) published in the Journal of Family Violence found that up to 80 percent of federal inmates incarcerated for possession, receipt, or distribution of child pornography also admitted to hands-on sexual abuse of children, ranging from touching to rape.
This case was brought as part of Project Safe Childhood (“PSC”), 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 U.S. Attorney offices and the Justice Department’s Criminal Division, Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Union Official Charged with EmbezzlementRead the Press Release
PITTSBURGH - A resident of Cranberry Township, Pa., has been indicted by a federal grand jury in Pittsburgh on a charge of union embezzlement, United States Attorney David J. Hickton announced today.
The one-count indictment named Duane Rill, 51, as the sole defendant.
According to the indictment, Rill, a Secretary-Treasurer of the Berry Metal Employees’ Association, an independent union, stole approximately $13,496 from the union by writing and cashing unauthorized union checks and by making an unauthorized cash withdrawals during the period from March 23, 2007 to Nov. 20, 2009.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The Department of Labor, Office of Labor Management Standards, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Tennessee Men Plead Guilty to Conspiring to Violate Civil Rights of African-american ResidentsRead the Press Release
Two Spring Hill, Tenn., men pleaded guilty in federal court today for their involvement in a racially-motivated conspiracy to interfere with the housing rights of African-American residents of the Spring Lake subdivision of Spring Hill, the Justice Department announced. Dakota James Calderhead, 20, and Kristian Chancellor Mathis, 19, each pleaded guilty in U.S. District Court in Nashville, Tenn., to one count of conspiracy to deprive a person of his civil rights.
According to their plea agreements, on or about December 30, 2011, Calderhead and Mathis conspired to vandalize homes in the Spring Lake subdivision. Mathis admitted to spray painting a swastika and racial slurs on the driveway of an African-American family’s residence.
Calderhead admitted that he fashioned a noose which Mathis hung from a tree outside of the residence. Calderhead also admitted to hanging a second noose from the driver’s side rearview mirror of the school bus located in front of another African-American family’s residence. Both defendants further admitted that their acts of vandalism were intimidating, and motivated, in part, by the race, color, or ethnicity of the victims.
“These innocent families were targeted and subjected to acts of harassment and intimidation for no other reason than their race,” said Deputy Assistant Attorney General Roy L. Austin Jr. of the Civil Rights Division. "The Justice Department will continue to vigorously enforce federal laws that guarantee the civil rights of all people.”
“The U.S. Attorney’s Office and our law enforcement partners remain committed to protecting the civil rights of all persons,” said David Rivera, Acting U.S. Attorney for the Middle District of Tennessee. “Conduct which seeks to deprive any person of their civil rights will always receive the full attention of this office.”
The defendants face maximum statutory penalties of 10 years in prison. U.S. District Judge Todd J. Campbell has scheduled sentencing for August 21, 2013.
This case was investigated by the Memphis Division, Columbia Resident Agency of the FBI and the Maury County Sherriff’s Department. It is being prosecuted by Senior Litigation Counsel Gerard Hogan and Trial Attorney Ryan Murguía of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Hal McDonough of the U.S. Attorney’s Office for the Middle District of Tennessee. Assistance was provided by District Attorney Mike Bottoms from the 22nd Judicial District of Tennessee.
Two Tennessee Men Plead Guilty to Conspiring to Violate Civil Rights of African-americanresidentsRead the Press Release
WASHINGTON – Two Spring Hill, Tenn., men pleaded guilty in federal court today for their involvement in a racially-motivated conspiracy to interfere with the housing rights of African-American residents of the Spring Lake subdivision of Spring Hill, the Justice Department announced. Dakota James Calderhead, 20, and Kristian Chancellor Mathis, 19, each pleaded guilty in U.S. District Court in Nashville, Tenn., to one count of conspiracy to deprive a person of his civil rights.
According to their plea agreements, on or about December 30, 2011, Calderhead and Mathis conspired to vandalize homes in the Spring Lake subdivision. Mathis admitted to spray painting a swastika and racial slurs on the driveway of an African-American family’s residence.
Calderhead admitted that he fashioned a noose which Mathis hung from a tree outside of the residence. Calderhead also admitted to hanging a second noose from the driver’s side rearview mirror of the school bus located in front of another African-American family’s residence. Both defendants further admitted that their acts of vandalism were intimidating, and motivated, in part, by the race, color, or ethnicity of the victims.
“These innocent families were targeted and subjected to acts of harassment and intimidation for no other reason than their race,” said Deputy Assistant Attorney General Roy L. Austin Jr. of the Civil Rights Division. "The Justice Department will continue to vigorously enforce federal laws that guarantee the civil rights of all people.”
“The U.S. Attorney’s Office and our law enforcement partners remain committed to protecting the civil rights of all persons,” said David Rivera, Acting U.S. Attorney for the Middle District of Tennessee. “Conduct which seeks to deprive any person of their civil rights will always receive the full attention of this office.”
The defendants face maximum statutory penalties of 10 years in prison. U.S. District Judge Todd J. Campbell has scheduled sentencing for August 21, 2013.
This case was investigated by the Memphis Division, Columbia Resident Agency of the FBI and the Maury County Sherriff’s Department. It is being prosecuted by Senior Litigation Counsel Gerard Hogan and Trial Attorney Ryan Murguía of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Hal McDonough of the U.S. Attorney’s Office for the Middle District of Tennessee. Assistance was provided by District Attorney Mike Bottoms from the 22nd Judicial District of Tennessee.
Two Sentenced to Federal Prison in Record Seizure of HeroinRead the Press Release
PROVIDENCE, R.I. – Jorge Daniel Estrada of Providence, R.I., and Angel Feliz of Dorchester, Mass., have been sentenced to lengthy federal prison sentences in connection with the seizure in October 2012 of 19 kilos of heroin, the largest single seizure in Rhode Island, announced United States Attorney Peter F. Neronha; Providence Public Safety Commissioner Steven M. Paré; Providence Police Chief Colonel Hugh T. Clements, Jr.; John J. Arvanitis, Special Agent in Charge of DEA’s New England Field Division; and Rhode Island Attorney General Peter F. Kilmartin.
The seizure of the heroin, valued at approximately $4.5 million, and the arrest of Estrada and Feliz, was prompted by information developed by Providence Police detectives during an on-going investigation into street-level drug dealing. A joint investigation by Providence Police and the DEA Drug Task Force resulted in the seizure of the heroin and the arrest of Estrada and Feliz.
Estrada, who pleaded guilty on January 29, 2013, to one count of possession with the intent to distribute one kilogram or more of heroin, was sentenced on Monday by U.S. District Court Chief Judge Mary M. Lisi to 180 months in federal prison, to be followed by lifetime supervised release.
Feliz, who pleaded guilty on January 29, 2013, to one count of attempting to possess with the intent to distribute one kilogram or more of heroin, was sentenced on May 10, 2013, by U.S. District Court Chief Judge Mary M. Lisi to 70 months in federal prison, to be followed by 3 years of supervised release.
According to information presented to the court, an individual previously arrested by Providence Police for the alleged possession of narcotics agreed to cooperate with law enforcement to arrange controlled deliveries of heroin. Two deliveries of a kilo of heroin took place on the evening of October 23, 2012, and on the following afternoon, witnessed by a team of law enforcement agents and officers from the DEA Drug Task Force and Providence Police. The drugs were quickly seized by law enforcement.
Later in the day on October 24, 2012, the informant received a call and was provided with a location to meet with a person who would be traveling from Massachusetts to Rhode Island to pick-up the two kilos of heroin. Law enforcement provided the informant with two fake kilos of heroin and watched as the delivery was made.
A search of Estrada’s Providence residence resulted in the seizure of an additional 17 kilos of heroin, a drug ledger, approximately $4,000 in cash, a money counter, various items used in the packaging of heroin, ammunition, and a sophisticated surveillance system. In addition, Estrada possessed a loaded handgun, ski mask and gloves, which were located in a sophisticated hidden compartment in the first vehicle used by Estrada to deliver a kilogram of heroin.
The case was prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
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