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10 May 2013
Des Moines Man Sentenced to 15 Months for Theft of Walnut Trees from the Army Corps of EngineersRead the Press Release
DES MOINES, IA – On May 9, 2013, Randall Todd Walker, a 50 year old resident of Des Moines, Iowa, was sentenced to 15 months imprisonment for cutting and removing 32 black walnut trees from property under the control of the Army Corps of Engineers and the Department of Interior, U.S. Fish and Wildlife, announced United States Attorney Nicholas A. Klinefeldt. United States District Judge John A. Jarvey also ordered Walker to serve three years of supervised release following incarceration. Judge Jarvey also ordered Walker to pay restitution in the amount of $56,225 and to pay a $100.00 special assessment for the Crime Victims Fund.
Walker had previously pleaded guilty to removing the walnut trees from the Neal Smith National Wildlife Reserve, which is under the control of the Department of Interior, U.S. Fish and Wildlife, as well as from other property under the control of the Army Corps of Engineers at the following locations: the downtown Riverside area in Des Moines, Iowa; the Sycamore area, in Polk County, Iowa; and the Lake Red Rock area in Marion County, Iowa.
The investigation was conducted by U.S. Fish and Wildlife, State of Iowa Department of Natural Resources Law Enforcement Bureau, and the Army Corps of Engineers. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Dallas Woman Sentenced to 78 Months in Federal Prison and Ordered to Pay Approximately $3.43 Million in Restitution for Embezzling from Women’s Southwest Federal Credit Union (WSFCU)Read the Press Release
Theresa Portillo Was Chief Executive Officer at the Now Defunct WSFCU
DALLAS – Theresa Portillo, 44, of Dallas, was sentenced today by U.S. District Judge Barbara M. G. Lynn to 78 months (six and one-half years) in federal prison and ordered to pay $3,431,000 in restitution, following her guilty plea in January 2013 to a felony Information charging one count of embezzlement of funds from a credit union. Portillo voluntarily agreed to forfeit nine parcels of real estate in the Dallas-Fort Worth area, a time share in Cabo San Lucas, Mexico, and personal property including diamond jewelry and four luxury watches. Judge Lynn ordered that Portillo surrender to the Bureau of Prisons on July 16, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
At this morning’s sentencing hearing, the former Chairman of the Women’s Southwest Federal Credit Union (WSFCU) testified that Portillo’s embezzlement scheme caused the credit union to become insolvent and bankrupt. She further explained that the unique mission of the WSFCU was to provide financial assistance to low income women, and that as a result of the scheme, the credit union failed and is no longer available to help poor women in need of financial aid.
According to documents filed in the case, from 2001 to October 2012, while employed at the WSFCU, including the time she served as its Chief Executive Officer, Portillo used deception to fraudulently obtain at least $3,421,000 from 18 different financial institutions in connection with her sale of several certificates of deposits (CDs). She used online services to contact several financial institutions interested in purchasing CD accounts at the credit union.
When a financial institution was willing to purchase a CD, Portillo gave the financial institution wiring instructions to send the purchase funds to a JP Morgan Chase account in the name of the credit union. Portillo used this Chase account to conceal the embezzlement because she knew that credit union officials thought the account was inactive; the account wasn’t recorded on the credit union’s general ledger; and she had sole control of the account. Portillo also concealed her theft of stolen credit union funds by opening a separate credit union account using a false and fictitious name. Portillo avoided detection of the scheme by writing checks using this fictitious name to disburse stolen credit union funds.
After the financial institutions wired funds into the Chase account, Portillo fraudulently disbursed and used these embezzled and stolen credit union funds to purchase motor vehicles, real property and jewelry for her personal use, as well as for family and friends. She also used embezzled funds to pay credit card bills; fund many vacations throughout the U.S., Mexico and Europe; pay family medical expenses; and remodel houses.
The case was investigated by the FBI. Assistant U.S. Attorney David Jarvis prosecuted.
Council Bluffs, Iowa, Resident Sentenced to Prison for Possession of A FirearmRead the Press Release
COUNCIL BLUFFS, IA - On May 7, 2013, Jason Lee Garza, a 32 year-old resident of Council Bluffs, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 30 months in prison followed by three years of supervised release for possession of a firearm by a convicted felon, announced United States Attorney Nicholas A. Klinefeldt. Garza pled guilty to the charge of a felon in possession of a firearm on February 8, 2013.
The charge was the result of an investigation conducted by the Council Bluffs, Iowa, Police Department, after the officers heard gun shots being fired in the area of 1200 block of Sixth Avenue and responded to that area on October 24, 2012. Officers located several people who reported being shot at by Garza before he had fled the scene. A short time later, officers located Garza in a nearby residence, and the firearm used by Garza was found hidden in a wall of the residence.
The investigation was conducted by the Council Bluffs, Iowa, Police Department, the Pottawattamie County Attorney’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Corpus Christi Man Sentenced for Meth TraffickingRead the Press Release
CORPUS CHRISTI, Texas – Jose Manuel Garcia, 38, of Corpus Christi, has been sent to federal prison for his involvement in a methamphetamine trafficking conspiracy, United States Attorney Kenneth Magidson announced today. Garcia and co-defendant Alvaro Villarreal, 57, also of Corpus Christi, pleaded guilty Oct. 23, 2012.
Today, U.S. District Judge Nelva Gonzales Ramos, who accepted the pleas, ordered Garcia to serve a total of 168 months of imprisonment to be followed by a five-year-term of supervised release. At the sentencing hearing, the court learned Garcia was an associate of the Mexican Mafia prison gang and that he had two felony federal convictions for illegal entry after deportation.
Villarreal will be sentenced June 14, 2013 at 9:30 a.m.
On July 30, 2012, agents from the United States Drug Enforcement Administration (DEA) received information that Garcia was in possession of approximately two pounds of methamphetamine and was attempting to sell the substance for $32,000. DEA agents contacted Garcia in an attempt to negotiate a purchase price for the narcotics. While conducting surveillance, agents followed Garcia to a residence in Corpus Christi where Garcia met with Villarreal. Garcia left the residence followed by Villarreal.As Villarreal left the residence, officers conducted a traffic stop at which time Villarreal told DEA agents the methamphetamine was located inside his residence. Villarreal also told agents someone from Matamoros, Mexico, had delivered the narcotics to Villarreal and that he was attempting to sell the narcotics to Garcia. He, in turn, was trying to sell the narcotics to DEA agents. During a search of Villarreal’s residence, agents located a shoe box containing 1.26 kilograms of methamphetamine with a purity level of 97.6%.
DEA agents contacted Garcia again and set up a meeting at Garcia’s residence so that agents could give Garcia the buy money. As Garcia drove towards his residence a traffic stop was conducted and he was arrested. Garcia told agents he was fully aware of the methamphetamine that was located in Villarreal’s residence. Garcia stated he was acting as a broker for the narcotics and that his intentions were to steal the methamphetamine from Villarreal, sell the substance and travel back to Mexico.
The investigation leading to the criminal charges was conducted in Corpus Christi lead by DEA and the Corpus Christi Police Department. The case is being prosecuted by Assistant United States Attorney Hugo R. Martinez.
Convicted ‘Operation Blue Bulldog’ Defendant Faces 10 Years to Life in PrisonRead the Press Release
Peoria, Ill. – Sentencing is scheduled in October 2013 for a Bloomington, Ill., man charged last summer with cocaine trafficking in the Bloomington-Normal area. Perry Harrington, 34, of the 300 block of Riley Drive, was one of the defendants arrested and charged as a result of the cooperative investigation known as “Operation Blue Bulldog” that targeted an alleged network of more than 15 defendants charged with distribution of cocaine and crack cocaine in the area.
A jury deliberated for more than one hour on Wed., Jun. 5, before finding Harrington guilty of the seven counts charged, including two counts of distribution of more than 28 grams of crack cocaine. The government presented evidence during the three days of trial that included video and audio surveillance of Harrington’s sales of cocaine and crack cocaine in 2011.
The charges were the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation known as “Operation Blue Bulldog.” The investigation began in 2010 by the FBI’s Peoria Area Safe Streets Task Force, the Normal Police Department; Bloomington Police Department and the Illinois State Police. Assistant U.S. Attorneys Greggory R. Walters and Bradley W. Murphy represented the government at trial before Chief U.S. District Judge James E. Shadid in Peoria.
At sentencing, scheduled on Oct. 10, 2013, Harrington faces a statutory mandatory minimum penalty of 10 years to life in prison.
Harrington has remained in the custody of the U.S. Marshals Service since his arrest in August 2012.Convicted Terrorist Sentenced to Life for Plotting to Kill Witness in Terrorism Material Support TrialRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Senior United States District Judge W. Earl Britt sentenced HYSEN SHERIFI, 29, of Raleigh, North Carolina, to life imprisonment. SHERIFI’s co-defendants, SHKUMBIN SHERIFI,23, and NEVINE ALY ELSHIEKH, 48, were also sentenced to 36 months and 42 months imprisonment, respectively, both followed by 3 years supervised release.
Mr. Walker stated, “This case serves as an unfortunate reminder that we must remain ever vigilant in our efforts to detect violent extremists who seek to harm our people and property.”
"Today, a convicted terrorist who plotted from his prison cell to behead federal agents and witnesses received the justice he deserved. As this sentence demonstrates, those who attempt to thwart the judicial process through violence will be prosecuted to the fullest extent of the law. I thank all those who worked to ensure that Hysen Sherifi’s original terrorist plans against U.S. military personnel and others were derailed, and that his subsequent murder-for-hire plot against those who testified against him was thwarted," said John Carlin, Acting Assistant Attorney General for National Security.
“Hysen Sherifi, while in prison on a terrorism conviction, hatched a sinister murder for hire plot against the witnesses and FBI agents who helped convict him. The sentences handed down today send a clear message the FBI and our law enforcement partners will not tolerate attempts to thwart the judicial process,” said John Strong, Special Agent in Charge of FBI Charlotte.
On November 8, 2012, HYSEN SHERIFI (SHERIFI) was found guilty by a jury of all nine counts of the indictment filed against him. SHERIFI was charged with plotting to kill six witnesses who had testified against him at his 2011 terrorism trial (United States v. Boyd, et al.). On November 1, 2012, SHKUMBIN SHERIFI and ELSHIEKH, SHERIFI’s co-conspirators, pleaded guilty to one count of conspiracy to commit murder-for-hire, in violation of 18 U.S.C. § 1958, and each testified during the trial of SHERIFI.
After his October 2011 conviction, and while awaiting his sentencing for the same, SHERIFI plotted to kill three FBI agents and three government informants who testified at his terrorism trial. SHERIFI sought to kill these individuals as revenge for his conviction, to prevent their testimony at co-conspirator, Anes Subasic’s, upcoming trial, and to get a new trial for himself. SHERIFI recruited his brother, SHKUMBIN SHERIFI, and NEVINE ELSHIEKH, a local school teacher to assist him in his plot. The SHERIFIS and ELSHIEKH then raised money to pay for the murders.
In January 2012, ELSHIEKH met with a government informant whom she believed to be the middleman for a hit man, in order to discuss the murder plot and possible targets. ELSHIEKH then relayed that information to SHERIFI during a jail visit. SHERIFI specified that he wanted each target to be beheaded and photographed after the beheading. At a second meeting with the “middleman,” ELSHIEKH confirmed the identity of a government witness to be murdered and made a down payment. The conspirators then worked together to collect the remaining funds needed to pay for the first murder. After collecting the funds, the conspirators arranged another series of meetings with the “middleman” to pay for the murder and get photographic confirmation of the first murder. On January 22, 2012, the conspirators were all arrested shortly after SHKUMBIN SHERIFI accepted pictures from the supposed “middleman,” purporting to show a beheaded government witness.
On February 21, 2012, a nine-count indictment was filed charging SHERIFI, SHKUMBIN SHERIFI, and ELSHIEKH with conspiracy and aiding and abetting in the attempt to use interstate commerce facilities in the commission of murder-for-hire, in violation of 18 U.S.C. §§ 1958(a) and 2; conspiracy and aiding and abetting in the attempt to kill another person, with intent to retaliate against any person for testimony given by a witness in an official proceeding, in violation of 18 U.S.C. §§ 1513(f), 1513(a)(1)(A), and 2; and conspiracy and aiding and abetting in the attempt to kill another person, with intent to prevent the attendance or testimony of any person in an official proceeding, in violation of 18 U.S.C. §§ 1512(k), 1512(a)(1)(A), and 2.
Investigation of this case was conducted by the Federal Bureau of Investigation Resident Agencies in Raleigh and Wilmington, North Carolina, with the assistance of the New Hanover County Sheriff’s Office.
The prosecution is being handled by Assistant United States Attorneys J. Frank Bradsher and Brian S. Meyers of the U.S. Attorney’s Office for the Eastern District of North Carolina, and Trial Attorney Matthew F. Blue of the Counterterrorism Section in the Justice Department’s National Security Division.
Colorado Man sentenced to 186 months prison in Methamphetamine ConspiracyRead the Press Release
Anchorage, Alaska-B U.S. Attorney Karen L. Loeffler announced today that a man from Colorado was sentenced in federal court in Fairbanks for his role in a Fairbanks drug conspiracy.
Mario Gutierrez, 40, from Northglenn, Colorado, was sentenced today by U.S. District Court Chief Judge Ralph R. Beistline. Gutierrez received a sentence of 186 months prison and three years of supervised release. Gutierrez had previously pled guilty to an indictment charging him with one count of drug conspiracy and one count of money laundering.
According to Assistant U.S. Attorney Kelly Cavanaugh, who prosecuted the case, between August 2009 and November 2011, Gutierrez sent methamphetamine from the Denver, Colorado, area to a co- conspirator located in Fairbanks. The co-conspirator would pay for the methamphetamine by depositing cash into Gutierrez’s Wells Fargo bank account at bank branches in Fairbanks, and Gutierrez would withdraw the money in Colorado. Between July 2009 and August 2010, $347,000 in cash had been deposited into Gutierrez’s Wells Fargo bank account at bank branches in Fairbanks.
Prior to imposing the sentence, Judge Biestline said this was a large scale methamphetamine distribution scheme perpetrated on the Fairbanks community.
In October 2012, Gutierrez’ co-conspirator Jess Baird of Fairbanks was sentenced in Fairbanks by Judge Beistline to 91 months prison and three years of supervised release for his role in the money laundering and drug trafficking conspiracy.
“The sentencing’s of Mario Gutierrez and his associate, Jess Baird, should let criminals who traffic methamphetamines in our communities know that their prison sentences will reflect the harm they inflict,” said Kenneth J. Hines, Special Agent in Charge of IRS Criminal Investigation in Alaska. “The people of Fairbanks should know that the IRS remains committed to the federal law enforcement team fighting the scourge that is meth.”
Ms. Loeffler commended the Internal Revenue Service Criminal Investigation Division, the Drug Enforcement Administration, the United States Postal Service, the North Pole and Fairbanks Police Departments, and Alaska State Troopers for the investigation leading to the successful prosecution of Gutierrez.
Chicago Police Officer Convicted of Attempted Extortion for Steering Vehicle Tows from Accident Scenes to DriverRead the Press Release
CHICAGO — A Chicago police officer was convicted today of obtaining two extortion payments totaling $3,200 from a cooperating tow truck driver, in exchange for steering vehicle tows from accident scenes, during an undercover investigation. The defendant, DEAVALIN PAGE, who was assigned to the South Chicago District at the time, was relieved of his police powers and assigned to desk duty following the payments that occurred in late 2007 and early 2008. Page was convicted on two counts of attempted extortion by a federal jury that deliberated a little more than two hours this morning after being presented with video recordings and other evidence of the payments during a trial that began Monday in U.S. District Court.
Page, 46, of Chicago, an officer since 1995, faces a maximum penalty of 20 years in prison and a $250,000 fine on each count of attempted extortion. He remains free on bond pending sentencing, which U.S. District Judge John Darrah scheduled for 1 p.m. on Oct. 23.
Page was indicted last October as part of the Federal Bureau of Investigation’s Operation Tow Scam, a corruption probe of police officers who steered vehicle tows at accident scenes to favored tow drivers in exchange for extortion payments. Page is the eighth police officer to be convicted, along with four civilians – three of them tow truck drivers, and charges are pending against two additional police officers.
Evidence at the trial showed that Page obtained two payments from a cooperating tow truck driver, Brian Chandler, in exchange for steering him various tows. Chandler has pleaded guilty to wire fraud and bank larceny and is awaiting sentencing. The first payment, on Nov. 28, 2007, was $2,000 in the bathroom of a coffee shop at 79th Street and Stoney Island. The second payment, on Jan. 28, 2008, was $1,200 in the parking lot of a bank while Page was in his private vehicle. The latter payment, in part, was in exchange for towing three cars, at least one of which did not require towing, from an accident scene at 86th and Burnham involving a teenager who was driving her parents’ insured car.
The guilty verdict was announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Garry F. McCarthy, Superintendent of the Chicago Police Department.
The government is being represented by Assistant U.S. Attorneys Michael Donovan and Steven Grimes.
Carrollton Man Charged with Enticement of A MinorRead the Press Release
David G. Driskill, 65, of Carrollton, Illinois, was charged in federal district court with Enticement of a Minor, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. The alleged violation took place between on or about May 1, 2013, and May 10, 2013, in Jersey County. After a detention hearing held today, the Court ordered that Driskill be held without bond pending trial.
The offense charged in the Complaint alleges that, between on or about May 1, 2013, and May 10, 2013, Driskill attempted to persuade, induce, entice, and coerce a minor to engage in sexual activity.
A trial date has not yet been set. If convicted of Enticement of a Minor, Driskill faces a term of in prison of not less than ten (10) years, up to life, a fine up to $250,000, and a term of supervised release of not less than five (5) years up to life.
A criminal complaint is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This investigation was conducted by the United States Secret Service’s Southern Illinois Cyber-Crime Unit, the Illinois State Police, and the Jerseyville Police Department. The case is assigned to Assistant United States Attorney Ali Summers.
Canadian Man Sentenced in Elder Fraud ScamRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court yesterday JAMAAL McKENZIE, 33, of Canada was sentenced for targeting the elderly in a fraud scam in violation of Title 18, United States Code, Section 371 and Title 18, United States Code, Section 1341 to 78 months of imprisonment followed by three years supervised release. The Court also ordered restitution of $840,705.00 to be paid.
On March 5, 2008, a Federal Grand Jury returned an Indictment. On January 30, 2013 McKENZIE pled guilty to one count of wire fraud and one count of mail fraud.
According to the investigation, from December, 2004, to April, 2007, the defendant, operating in and around the Montreal, Canada, area, devised a scheme in which he called elderly United States citizens, falsely telling them they had won a large prize in a sweepstakes or lottery. The defendant then convinced the victims to send money in order to receive their prize.
The victims were identified from a lead list that co-defendant Clayton Atkinson, the leader, purchased from a Montreal business. Characteristics that Atkinson desired of the victims, included ready sources of money, availability during the day to answer the phone and vulnerability due to infirmities of age. Pre-paid cellular phones were obtained under false names to contact the victims. When a victim answered the phone fictitious names, titles and company names were used.
The investigation determined that at least 39 victims in various states, including North Carolina, had been defrauded and the defendants had fraudulently obtained at least $840,705.00.
Investigation of this case was conducted by the Federal Bureau of Investigation; the North Carolina Attorney General’s Office, Elder Fraud Unit; and the Royal Canadian Mounted Police. Assistant United States Attorney J Gaston B. Williams prosecuted the case.
Buffalo Man Sentenced to 10 Years for Drug TraffickingRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Ramone Perry, 32, of Buffalo, N.Y., who was convicted of conspiracy to possess with intent to distribute 500 grams or more of cocaine, was sentenced to 10 years in prison and eight years supervised release by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Mary Clare Kane, who handled the case, stated that the defendant was arrested after being intercepted over New York State wiretaps arranging for the purchase of cocaine from Wallace Peace and others. Search warrants executed during the investigation resulted in the seizure of 17 firearms, more than five kilograms of cocaine powder and in excess of 200 grams of crack cocaine. Wallace Peace is currently awaiting trial on drug and gun charges.
The sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Region; Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Francis J. Christiano, Resident Agent in Charge; and Special Agents of the Buffalo Police Department, under the direction of Daniel Derenda, Commissioner.
Brooks County Marijuana Traffickers Sentenced to Federal PrisonRead the Press Release
CORPUS CHRISTI, Texas – Five area men have been sent to prison for conspiracy and possession with intent to distribute more than 1,000 kilograms of marijuana, United States Attorney Kenneth Magidson announced today. Edward Mata, 28, Richard Scott Patton, 41, Luis Andres Longoria, 40, and Servando Guerra, 62, all pleaded guilty in December 2011.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Guerra to 46 months in prison, while Patton, Longoria, Guerra and Gonzalez received sentences of 36 months each. All the sentences will be followed by a five-year-term of supervised release. Upon handing down the sentences, Judge Ramos noted the length of time the marijuana conspiracy existed and the large amount of narcotics trafficked.
The men, all residents of Falfurrias, were part of an organized effort to transport marijuana from September 2008 to January 2011 through ranches around the Falfurrias Border Patrol Checkpoint using four-wheel-drive vehicles known as gators to avoid detection. Agents determined that this organization was led by Jose Maria Carbajal Jr., 42, also of Falfurrias, who was prosecuted in a separate case and who was previously sentenced to nine years in prison.
They all pleaded guilty in December 2011, at which time the government described the use of four-wheel-drive vehicles by this organization in their criminal enterprise. The gators would be loaded with marijuana at a point south of the Falfurrias Border Patrol Checkpoint. Then, the gators would be piloted through ranches to a point north of the checkpoint so the marijuana could be transported via ordinary means further into the United States for distribution. During the investigation, one of the marijuana-laden gator vehicles was apprehended and another was found abandoned on a ranch.
The organization was led by Carbajal from his Brooks County ranch. Longoria helped Carbajal scout ranches and roads and assisted in the transportation of drugs. Patton usually transported the marijuana through the brush and ranches until it arrived north of the checkpoint, while Mata and also assisted Carbajal in arranging the transportation of drugs. In addition, Longoria’s and Mata’s residences were frequently used by this organization to store large amounts of narcotics after it has circumvented the checkpoint. Guerra also assisted in the transportation of marijuana for the organization. Once the drugs made it north of the checkpoint, Gonzalez transported the drugs through ranches and also helped in scouting the ranches and roads.
The case was investigated by the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation, Homeland Security Investigations, the Texas Department of Public Safety and the Brooks County Sheriff’s Department. The case is being prosecuted by Assistant U.S. Attorneys Jon Muschenheim and Julie Hampton as part of the Organized Crime Drug Enforcement Task Force.
Brad Charles Fisher, an Insurance Salesman, Convicted of Tax Evasion in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that on May 9, 2013, in Helena, after a federal district court trial before Senior U.S. District Judge Charles C. Lovell, BRAD CHARLES FISHER, 51, a former resident of Helena and a current resident of Kenmore, Washington, was found guilty of attempt to evade or defeat income tax. Sentencing is set for September 13, 2013. He is currently released on special conditions.
At trial, the following evidence and testimony was presented to the jury.
From April 2006 until January 2008, FISHER attempted to evade and defeat the payment of an income tax due and owing by him to the United States for the calendar years 2001 to 2006 by concealing and attempting to conceal from the Internal Revenue Service the nature and extent of his assets and by making false statements to Internal Revenue Service agents.
From 2001 through 2006, FISHER earned substantial amounts of income by selling insurance products. However, FISHER did not file any tax returns for these years until mid-2006. After IRS commenced a civil audit of FISHER for the 2001-03 tax years, and later sent him a notice of tax deficiency for this period, FISHER eventually filed his 2001-06 returns. In these tax returns, FISHER reported that he earned income and owed tax. However, contrary to his accountant's instruction, he only paid a small portion of his tax due. By FISHER's own estimation, he owed a total of about $444,761 in tax for 2001-06 (not including interest and penalties). He paid a total of about $44,444. Accordingly, IRS referred this case to its Collections division. An IRS agent was assigned to collect FISHER's back taxes, and he contacted FISHER in or about April 2006 to initiate the collections process. The agent asked that FISHER fill out a Collection Information Statement, which calls for the taxpayer to disclose his assets.
When the agent first met with FISHER on May 9, 2006, FISHER provided a partially filled out Collection Information Statement. Because the form did not list any motor vehicles, the agent asked FISHER what motor vehicles he owned. FISHER listed several cars, but failed to mention four to which he held title at the time: a 1967 Chevrolet Corvette, a 1974 Chevrolet Nova, a 1996 GMC K-1500, and a 1999 Chevrolet Tahoe. FISHER also failed to mention a 2004 Chaparral boat that he owned, until the agent inquired about a reference to a boat in FISHER's bank records during a later meeting. Even then, FISHER said he had "no equity" in the boat, when in fact he sold it shortly thereafter and received $17,227 net of encumbrances.
In late 2006, as it became apparent that FISHER was not selling assets voluntarily, the IRS began to take steps to levy certain of his assets. On April 9, 2007, FISHER sent a second Collection Information Statement to the agent. Again, however, it failed to disclose a vehicle that FISHER owned, this time a 2007 Chevrolet Silverado that he had recently purchased. As IRS Collections proceeded toward seizure of FISHER's assets, FISHER filed for bankruptcy on November 14, 2007. It was only during a subsequent bankruptcy hearing that the agent learned about the vintage classic cars that FISHER had previously concealed.
In addition to the agent's testimony and presentation of Department of Motor Vehicles (DMV) records concerning the concealed vehicles, the government offered testimony from the persons that sold certain cars (and the boat) to FISHER, as well as from the buyers who later purchased the vehicles from him. FISHER's travel agent also testified that, during the time his tax debt was outstanding, FISHER purchased expensive vacation packages instead, belying any suggestion that FISHER attempted to pay his debt in good faith.
Assistant U.S. Attorney Chad C. Spraker and Department of Justice Tax Trial Attorney Joseph Rillotta prosecuted the case for the United States.
FISHER faces possible penalties of 5 years in prison, a $100,000 fine and 3 years supervised release.
The investigation was conducted by the Criminal Investigation Division of the Internal Revenue Service.
Boston Man Convicted in Armed RobberyRead the Press Release
BOSTON – Following a five-day trial, a federal jury today convicted a Boston man for his role in the armed robbery of a Dorchester MetroPCS retail store in 2011.
Ronald E. Brown, 40, was convicted of armed robbery, using and carrying a firearm during a crime of violence, and being a previously convicted felon in possession of a firearm. U.S. District Judge Denise J. Casper scheduled sentencing for August 7, 2013. On the armed robbery charge, Brown faces a statutory maximum penalty of 20 years in prison, five years of supervised release and a $250,000 fine; for carrying a firearm during a crime of violence, he faces a statutory minimum penalty of 15 years and up to life in prison, five years of supervised release and a $250,000 fine; and for being a previously convicted felon in possession of a firearm, he faces a statutory minimum penalty of 15 years and up to life in prison, five years of supervised release and a $250,000 fine.
On the morning of Oct. 31, 2011, Brown and his co-conspirator, Lynch Arthur, entered the MetroPCS retail store on Washington Street in Dorchester. Brown distracted the clerk and Arthur walked around the counter, brandishing a semi-automatic pistol. The two then forced the salesperson into the backroom and demanded the store’s cash after arming themselves with semi-automatic pistols. The men then used duct tape to tie up the clerk, removed all cash from the store, and fled the scene. A short time later the two men were encountered by Boston Police officers on Kenwood Street. During questioning officers observed clothing, reportedly worn by the robbers scattered on the sidewalk. The officers did a sweep and discovered the firearms, duct tape, and cash consistent with the amount stolen in a blue recycle bin a few yards from the scene of the encounter. The two were then brought back to the store and positively identified by the clerk.
In March 2013, Arthur pleaded guilty and is scheduled to be sentenced next month.
U.S. Attorney Carmen M. Ortiz; Eugenio A. Marquez, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner Edward Davis, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine and Robert M. Richardson of Ortiz’s Major Crimes Unit.Belleville Woman Pleads Guilty to Filing False Federal Income Tax ReturnsRead the Press Release
Terri M. Boatman, age 45 of Belleville, Illinois, pled guilty in federal court to the offenses of Filing False Federal Income Tax Returns for the years 2009 and 2010, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The offenses each carry a maximum possible penalty of up to three years in prison, a fine of up to $250,000, and restitution for the tax loss. Sentencing is scheduled for August 19, 2013.
Boatman admitted as part of the plea that she had false and fraudulent 2009 and 2010 federal income tax returns prepared by Prime Time Tax Services. Delaun Leflore and Carey Herron owned and operated Prime Time Tax Services (PTTS) located in Shiloh, Illinois. During the 2008-2011 filing seasons, Leflore and Herron used electronic software to prepare and file tax returns and they typically applied for refund anticipation loans. Leflore and Herron conspired together and with their clients to prepare false tax returns and claim fraudulent tax refunds. To accomplish this scheme, Leflore and Herron created false and fraudulent Schedule C income and expenses. The purpose of creating the false income was to maximize the earned income credit and other credits which generated large tax refunds. While meeting with their clients, Leflore and Herron discussed how to receive more money back by creating self-employment income. The clients agreed to participate in the scheme in order to receive a larger tax refund. Typically, the clients were referred to Leflore and Herron and visited the tax preparation business knowing they would file fraudulent tax returns. As part of the scheme, the clients were required to pay an extra cash fee to Leflore or Herron from the tax refund received. This amount was generally $500 in cash. This amount was in addition to the tax preparation fee which was automatically deducted from the tax refund by the bank processing the refund anticipation loan (RAL). Following the receipt of the RAL check, Leflore, Herron, or another representative of PTTS escorted the clients to a local check-cashing business named Belleville Quick Stop located in Belleville, Illinois. After the client cashed the RAL check, the client immediately gave the $500 in cash to Leflore, Herron, or another representative of Prime Time. Leflore and Herron have already been prosecuted and are serving their prison sentences.
The Indictment is the result of an investigation conducted by the Internal Revenue Service/Criminal Investigations. The prosecution is being handled by Assistant U.S. Attorney Norman R. Smith.
To report criminal tax fraud call, I.R.S. Criminal Investigations at (618) 622-2160, or send the information to the Internal Revenue Service, Fresno, CA 93888.
Ashburn Man Sentenced to 78 Months Imprisonment for Receipt of Child PornographyRead the Press Release
ALEXANDRIA, Va. – Blake David Coleman O’Gara, 30, of Ashburn, Virginia, was sentenced this morning to 78 months imprisonment, followed by a lifetime of supervised release, after his guilty plea to receipt of child pornography.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing today by United States District Court Judge T.S. Ellis, III.
According to court documents and court proceedings, O’Gara downloaded child pornography images and videos from various websites and a peer-to-peer file sharing program from October 2010 to October 2012. A search warrant executed on October 23, 2012 revealed that O’Gara had more than 600 images and videos of child pornography on his computers.
The investigation was conducted by the FBI Washington Field Office’s Child Exploitation Task Force.
Special Assistant United States Attorney Alicia J. Yass, a Trial Attorney with the Child Exploitation and Obscenity Section of the Justice Department’s Criminal Division, is prosecuting the case on behalf of the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.usdoj.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on http://pacer.uspci.uscourts.gov.Apollo Woman Pleads Guilty in $15 Million Fraud SchemeRead the Press Release
PITTSBURGH, Pa. - A resident of Apollo, Pa., pleaded guilty in federal court to a charge of mail and wire fraud conspiracy, United States Attorney David J. Hickton announced today.
Bonnie M. Gardner, 55, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that Gardner participated in a massive fraud scheme involving more than $15 million in losses to more than 100 victims. The investigation has subsequently determined that Gardner and Frank Guzik, Jr., through various investment and development groups, such as East Haven Investments, East Haven Development, East Haven Realty, etc., devised and implemented an elaborate Ponzi scheme through which they successfully solicited investors.
The purported business of East Haven was to purchase properties, make various improvements to the properties, and then to sell them. In order to secure the investments, Guzik and Gardner made a series of misrepresentations to the investors, including the interest rate, that the investments would be secured by mortgage, and various other misrepresentations. As collateral for the investments, Guzik and Garnder provided the investors mortgages on various properties. The investors believed that East Haven would be unable to sell the properties on which they held mortgages unless the mortgages were satisfied. Many of these mortgages were never filed, which the investors later learned.
The investigation has also revealed that the satisfaction pieces on some of the mortgages were forgeries. Guzik and Gardner also provided multiple investors with mortgages on the same properties. Thus, the purported value to the mortgagees was well in excess of the property's value. The investors were, of course, unaware that other investors held mortgages on the same properties.
Some of the investors received, if requested, monthly interest payments on their investments. Others chose to roll their monthly interest over into the investment, having been erroneously told by Guzik and Gardner that no tax was due on the accrued interest if it was rolled over. The investment never really earned any interest, despite the investors statements indications to the contrary and despite the payment of interest payments. In other words, Guzik and Gardner used new investor funds to pay interest to individuals who had invested earlier, and also to support the lifestyles Guzik and Gardner were living.
Beginning in April of 2005, Guzik and Gardener needed to sell some of the properties to generate cash flow and to show investors that East Haven was profitable, but they could not sell the properties. Thus, Guzik and Gardner convinced a number of individuals to act as straw purchasers of the properties. The mortgage documents falsely reported that the purchasers made substantial down payments from their own funds to purchase the properties. In fact, Guzik and Gardner deposited investor funds into the straw purchasers' bank accounts and then the straw purchasers would withdraw the money in the form of a certified check that they would bring to the closings as if they had made the down payment from their own funds. In addition, Guzik and Gardner paid the straw purchasers, using investor funds, the mortgage and utility payments for those properties. Guzik and Gardner then prepared a glossy pamphlet reporting the sales of the properties for use in inducing further investors.
Beginning around November 2007 and continuing until in or around March 2008, Guzik began withdrawing funds from the East Haven accounts by cash and check. By the end of March 2008, East Haven's National City accounts, into which investor checks had been deposited and from which investor interest checks had been drawn, had minimal or zero balances. During the same time period, Guzik withdrew $200,000 to purchase untraceable gold coins from International Precious Metals in Texas. Guzik also received two short-term loans totaling $475,000 in early March 2008, promising to repay them at 20% interest by March 18, 2008.
On or about March 17, 2008, Guzik disappeared, and has not been heard from since. He did not repay the loans, stopped making interest payments on investments totaling approximately $15 million, and never accounted for the principle investments. His whereabouts are still unknown.
Judge Fischer scheduled sentencing for Oct. 18, 2013 The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorneys Brendan T. Conway and Gregory Melucci are prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the Criminal Investigation Division of the Internal Revenue Service, with assistance from the Monroeville Police Department, conducted the investigation that led to the prosecution of Gardner.
61 Defendants Charged with Illegal Firearms, Drugs in ATF-KCPD Undercover OperationRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that 61 Kansas City, Mo.-area residents have been charged with firearms violations, drug trafficking or other crimes as the result of a nearly year-long undercover operation by the ATF and the Kansas City, Mo., Police Department.
“This was the largest federal round-up ever conducted in this district as the result of a single investigation,” Dickinson said. “We are taking dozens of violent criminals off the street and hundreds of illegal guns out of circulation. Kansas City is a safer city today as a result of this operation.”
More than 150 law enforcement officers from local, state and federal agencies arrested 28 defendants in a three-day sweep this week. In addition, eight federal defendants are already in custody on earlier indictments resulting from this investigation and one defendant is already in federal custody in an unrelated case. Ten defendants are already in state custody on unrelated charges.
The remaining 14 defendants who are not in custody are considered fugitives from justice and are actively being sought by law enforcement. The public’s assistance is requested to locate these fugitives. Anyone with information is encouraged to call the TIPS hot line at 816-474-8477.
“This investigation is a testament to the NoVA partnership and is just the beginning. These indictments demonstrate our message that violence will not be tolerated,” said ATF Special Agent in Charge Marino F. Vidoli. “ATF is committed to utilize every resource to keep the citizens of Kansas City safe. Be warned, if you are committing violent crime in this city, we will not rest until you are off the streets.”
During the course of the investigation, agents seized 222 firearms (including handguns, assault rifles and sawed-off shotguns). Some of those firearms have been identified as having been used in multiple violent crimes, including unsolved homicide investigations, and some had been reported stolen. Agents also seized or purchased various quantities of marijuana, cocaine, crack cocaine, methamphetamine, PCP and various other narcotics.
“This is a significant operation that should have a major impact on gun crime in our city,” said Jean Peters Baker, Jackson County Prosecutor.
Baker added that the operation will also be significant in pressing the new KC NoVA (No Violence Alliance) effort that involves federal, state and city law enforcement agencies as well as community leaders. The undercover operation provided information that will be used in the future by NoVA.
NoVA tells those involved in groups associated with crime here that law enforcement is working closely together to win the most severe punishment possible for violent crime, Baker noted. “This operation shows we mean what we say,” she said.
“I applaud the efforts of all law enforcement officers from each respective agency who have worked on this operation,” said Kansas City, Mo., Police Chief Darryl Forté. “It is my hope that through these proactive efforts, those involved in violent crimes are located and arrested and those considering that choice are provided a different path to follow. Through operations like this, I believe this is being accomplished.”
“We pledged at NoVA’s inception that law enforcement, prosecutors and community partners would be united in stamping out violent crime, and we’re delivering on that promise,” Dickinson said. “NoVA is a carrot-and-stick approach, and what you’re witnessing this week is the stick. We are bringing the full weight of our resources to bear on the level of violence in Kansas City.”
Following this week’s law enforcement action, NoVA partners will directly approach those individuals who have been identified in a network of associates of known criminals. These individuals, who were neither charged nor arrested this week, will be offered resources and services to assist them if they desire to renounce a life of crime, rehabilitate themselves and become productive members of the community.
According to Dickinson, two-thirds of the defendants charged in the operation (41 defendants) have prior felony convictions and more than half of the defendants are currently on probation or parole. Under federal statutes, it is illegal for anyone who has been convicted of a felony to possess any firearm or ammunition. It is also a federal offense for drug traffickers and users of controlled substances to possess any firearm or ammunition.
“This operation targeted armed career criminals, violent felons who are carrying guns,” Dickinson said. “We know that the same guns are often used over and over again to commit violent crimes. Every weapon taken out of the hands of a convicted felon represents lives saved and violent crimes prevented.”
Dickinson noted that the large sudden influx of federal cases requires the U.S. Attorney’s Office to work closely with the District Court, the U.S. Marshal’s Office and the Office of Probation and Parole. “We appreciate the coordination of everyone at the courthouse as we implement some creative solutions to insure that the administration of justice continues efficiently under these extraordinary circumstances,” said Dickinson.
Dickinson cautioned that the charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
The federal cases are being prosecuted by Assistant U.S. Attorneys David A. Barnes, Stefan C. Hughes, Bruce Rhoades, Charles E. Ambrose, Jr., Bruce E. Clark, Cathleen Connelly, Christina Y. Tabor, David DeTar Newbert, Rudolph R. Rhodes IV, D. Michael Green and Brent Venneman and by Special Assistant U.S. Attorneys Sydney Sanders, Jalilah Otto, Leena Ramana and Sarah A. Castle. They were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kansas City, Mo., Police Department, the Independence, Mo., Police Department and Homeland Security Investigations.
20 Charged with Drug TraffickingRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Fort Wayne, Indiana — United States Attorney David Capp announced today that a Grand Jury sitting in Fort Wayne returned 14 Indictments on March 28, 2013 charging several conspiracies to distribute narcotics as well as firearm charges.
In March 2011, an investigation by the Fort Wayne Safe Streets Task Force under the direction of the Federal Bureau of Investigation revealed the existence of a large scale narcotics distribution conspiracy operating in northeastern Indiana. The initial stages of the investigation identified Pedro Salud Rubio-Garcia an alleged drug supplier in the Steuben County area, and the subsequent use of several court authorized wiretaps of various telephones identified Manuel Herrera and Armando Herrera-Velasquez and others, as operating an illegal drug supply network in northeast Indiana.The following 20 individuals are named in the 14 Indictments:
#1
Pedro Salud Rubio-Garcia, 25, of Fremont, Indiana is charged with conspiracy to distribute and possess with the intent to distribute cocaine and methamphetamine, distribution of methamphetamine and the selling and transfer of a firearm to a known convicted felon.
Jose Noe Perea Casteneda, 40, of Goshen, Indiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and methamphetamine.
#2
Armando Herrera-Velasquez, 41, of Fort Wayne, Indiana is charged with conspiracy to distribute and possess with the intent to distribute cocaine.
Manuel Herrera, 43, of Fort Wayne, Indiana is charged with conspiracy to distribute and possess with the intent to distribute cocaine and maintaining a residence for the purpose of distributing cocaine.
Elida Herrera, 51, of Fort Wayne, Indiana is charged with conspiracy to distribute and possess with the intent to distribute cocaine and maintaining a residence for the purpose of distributing cocaine.
Maria Patricia Herrera, 52, of Fort Wayne, Indiana is charged with conspiracy to distribute and possess with the intent to distribute cocaine.
Efren Paniagua-Pizano, 24, of Fort Wayne, Indiana is charged with conspiracy to distribute and possess with the intent to distribute cocaine.
Luis Tapia, 42, of Fort Wayne, Indiana is charged with conspiracy to distribute and possess with the intent to distribute cocaine and maintaining a residence for the purpose of distributing cocaine.
#3
Armando Gonzales-Gutierrez, 43, of Fort Wayne, Indiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine and use of a communication facility.
#4
Darwin Altamirano, 29, of Fort Wayne, Indiana is charged with conspiracy to distribute and possess with the intent to distribute cocaine and use of a communication facility.
#5
Juan Corona, 33, of Fort Wayne, Indiana is charged with conspiracy to distribute and possess with the intent to distribute cocaine and use of a communication facility.
#6
Damian Dubose, 37, of Fort Wayne, Indiana is charged with conspiracy to distribute and possess with the intent to distribute cocaine, distribution of cocaine and use of a communication facility.
#7
Leobardo Gaona, 39, of Huntertown, Indiana is charged with conspiracy to distribute and possess with the intent to distribute cocaine and use of a communication facility.
#8
Gelacio Marintez, 36, of Sturgis, Michigan is charged with conspiracy to distribute and possess with the intent to distribute cocaine and use of a communication facility.
#9
Gerardo Martinez-Gaston, 42, of Fort Wayne, Indiana is charged with conspiracy to distribute and possess with the intent to distribute cocaine, distribution of cocaine and use of a communication facility.
#10
Juan Pena, 20, of Sturgis, Michigan is charged with conspiracy to distribute and possess with the intent to distribute cocaine and use of a communication facility.
#11
Guadalupe C. Luna, of Fremont, Indiana is charged with distribution of cocaine.
#12
Cynthia L. Sanchez, 42, of Fort Wayne, Indiana is charged with distribution of cocaine.
#13
Jerry Sell, 45, of Van Wert, Ohio is charged with conspiracy to distribute and possess with the intent to distribute cocaine and use of a communication facility.
#14
John Bennett, 35, of Sturgis, Michigan is charged with conspiracy to distribute and possess with the intent to distribute methamphetamine and use of a communication facility.
These charges were filed as a result of an investigation conducted by the Federal Bureau of Investigation Fort Wayne Safe Streets Task Force, which is comprised of FBI agents and officers from the Indiana State Police, Allen County Police Department, and the Fort Wayne Police Department. The Bureau of Alcohol, Tobacco, Firearms, and Explosives; United States Marshals Service; Angola City Police Department; Elkhart County Interdiction and Covert Enforcement Unit; IMAGE Drug Task Force; Michigan State Police; New Haven Police Department; South Bend Police Department; and the Steuben County Sheriff's Department assisted with this investigation.
On Thursday May 9, 2013, law enforcement arrested the following individuals in the Fort Wayne area: Efren Paniagua-Pizano, Luis Tapia, Pedro Salud Rubio-Garcia, Guadalupe Carmona Luna, Armando Gonzalez – Gutierrez, Gerardo Martinez – Gaston, Juan Corona, Jose Noe Perea Casteneda, Jerry Sell, Maria Patricia Herrera, Cynthia Lynn Sanchez, Damian Dubose, Juan Pena, and Leobardo Gaona.Arrested in Las Vegas Nevada were Manuel Herreraand Elida Herrera.Arrested in Michigan were Gelacio Martinez and John Bennett.
On that same date, the FBI served search warrants on several residences and seized multiple vehicles to include:
1606 Saint Louis Avenue, Fort Wayne, IN 46819
117 E. DeWald Street, Fort Wayne, IN 46803
3026 Pennsylvania Street, Fort Wayne, IN 46803
1024 East Paulding Road, Fort Wayne, IN 46806
600 West North, Lot 13, Fremont, IN
3009 Oliver Street Fort Wayne, IN
7555 Decatur Road lot 28, Fort Wayne, IN
Blue 2012 Chevrolet Cruze
Silver 2009 Pontiac Vibe
Red 2006 Ford F-150
Black 2007 GMC Yukon
White 2009 Lincoln MKS
Black 2003 GMC Yukon
White 2008 Pontiac G6
United States Court Magistrate Judge Roger B. Cosbey has set initial appearances for the arrested individuals from this area which were held May 9 and to be held on May 10, 2013.The individual defendants have made and will be making their appearances, detention hearings and arraignments in front of Magistrate Judge in the coming days.
These cases have been assigned to and will be prosecuted by Assistant United Attorney Lesley Miller Lowery.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
9 May 2013
Westfield Man Sentenced for Possessing Child PornographyRead the Press Release
BOSTON – A Westfield man was sentenced today in U.S. District Court in Springfield for possession of child pornography.
Richard Starr, 56, of Westfield, was sentenced by U.S. District Judge Michael A. Ponsor to 42 months in prison, followed by 10 years of supervised release, restitution of $3,800 and forfeiture of various computer media. In February 2013, Starr pleaded guilty to possession of material involving the sexual exploitation of minors.While federal agents were conducting a consensual interview with Starr at his residence he admitted that he had requested files from a child pornography-related website. In response to agents’ request to search Starr’s computers for child pornography, he responded that “chances are you’ll find something.” Starr subsequently did not consent to the search so agents contacted the Westfield Police Department who obtained a state search warrant for the residence and proceeded to seize multiple computers and computer media. The FBI conducted a forensic examination of the computer media and discovered tens of thousands of digital images and video files depicting minors engaging in sexually explicit conduct. Many of these files were located in folders that contained suggestive or explicit titles, such as "Candydolls," and "eternal-nymphets."
United States Attorney Carmen M. Ortiz; Richard DesLauriers, Special Agent in Charge of Federal Bureau of Investigation Boston Field Division; and Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Custom Enforcement’s Homeland Security Investigations in Boston, made the announcement today. The case was investigated with the assistance of the Westfield Police Department. It is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.
United Courier Service Owner Goes to Jail for Filing False Tax ReturnsRead the Press Release
GRAND RAPIDS, MICHIGAN – Thomas Richard Fulger, age 65, of Lansing, Michigan, was sentenced to 9 months imprisonment and 1 year of supervised release for willfully filing false tax returns for the tax year 2005, U.S. Attorney Patrick A. Miles, Jr. announced today. U.S. Attorney Miles was joined in the announcement by Special Agent in Charge Erick Martinez, Internal Revenue Service Criminal Investigation.
In addition, U.S. District Judge Janet T. Neff also ordered Fulger to pay a special assessment of $200 and restitution to the Internal Revenue Service of $139,988.
According to court records, Fulger who is the owner of United Courier Service in Lansing, evaded taxes by routinely under-reporting his S Corporate income and under-reporting his individual income on the corresponding federal income tax returns. For 2005, Fulger reported his personal gross income was negative $23,123 when in fact his true gross income was $293,750.
In addition to pleading guilty to filing false tax returns for the tax year 2005, the defendant admitted that he deliberately failed to pay $139,988 in taxes between 2004 and 2007. In addition to a sentence of 9 months’ imprisonment, the defendant will be required to pay his unpaid tax balance.
“Fulger’s sentence emphasizes the importance that everyone must honestly report their income,” said Special Agent in Charge Erick Martinez. “IRS Criminal Investigation will investigate individuals that deliberately file false returns and there are severe consequences for those who violate the law.”
The investigation of this case was conducted by special agents of the Internal Revenue Service, and prosecuted by Assistant U.S. Attorney Rene Shekmer.
END
U.S. Attorney's Office Announces Significant Management ChangesRead the Press Release
LEXINGTON, KY - The U.S. Attorney for the Eastern District of Kentucky, Kerry B. Harvey, announced a number of leadership changes today including a new top assistant.
Harvey announced that Carlton Shier IV will serve as the First Assistant U.S. Attorney, Robin Gwinn will lead the office’s civil division and Bob McBride will manage the Fort Mitchell, KY., branch office.
As First Assistant, Shier will serve as Harvey’s top advisor and support him in managing the operations of the Lexington headquarters and branch offices located in Fort Mitchell and London, KY., which, altogether, includes a staff of nearly 100 employees and contractors. He will work closely with leaders of the office’s administration, appellate, asset forfeiture, criminal and civil divisions, and will participate in all aspects of managing the operation.
Shier, a Lexington native, had served as chief of the office’s civil division since September of 2010. During his tenure, the division marked several accomplishments, including negotiating a settlement with an Erlanger nursing home in a landmark case. It marked the first time in Kentucky that the False Claims statute was used in a case in which a nursing facility was sued alleging a systemic failure of care for its residents.
Prior to joining the U.S. Attorney’s Office, Shier worked as the Deputy General Counsel for the Kentucky Cabinet of Health and Family Services. He also has worked at the Kentucky Attorney General’s Office and with the Fayette County Attorney’s Office. Shier graduated from Henry Clay High School and Centre College. He received his Master’s Degree in Justice Administration in 1994 and his law degree from the University of Louisville in 1997.
Gwinn, of Lexington, will lead a civil division consisting of approximately 20 attorneys and legal assistants. The civil division represents the United States in a wide array of litigation filed in the Eastern District of Kentucky, including affirmative efforts to recover taxpayer dollars lost to fraud and the defense of suits seeking damages against federal agencies and officers.
In 2010, U.S. Attorney General Eric Holder presented Gwinn with the “Exceptional Service Award” for her efforts in a case that resulted in the largest pharmaceutical settlement in the Department of Justice’s history at the time. The case involved pharmaceutical giant Pfizer, which agreed in September of 2009 to pay the Government $2.3 billion for illegally marketing drugs to doctors in Kentucky’s Eastern District and several other states.
Gwinn has been with the U.S. Attorney’s Office since 2002, primarily working civil cases. She has prior experience in state and county government. Gwinn received her law degree from the University of Kentucky in 1985.
McBride will oversee the operations of the Fort Mitchell branch office, which has a total of 14 attorneys and legal assistants. McBride has been with the U.S. Attorney’s Office since 2002 and was the office’s criminal division chief from the fall of 2007 through 2009. Prior to coming to the U.S. Attorney’s Office, he served in the Navy as a Lieutenant Commander. McBride received his law degree from the University of Dayton in 1992.
The U.S. Attorney’s Office in the Eastern District of Kentucky prosecutes criminal cases and represents the United States in civil litigation filed in the federal courts of the Eastern District of Kentucky which encompasses 67 counties stretching from southeastern Kentucky to the Ohio border.
U.S. Attorney Ortiz Honored with Leadership AwardRead the Press Release
The Boys and Girls Club of Dorchester held the New England Women’s Leadership Awards (NEWLA) ceremony where they recognized U.S. Attorney Carmen Ortiz and two other remarkable women for their accomplishments both professionally and personally. Massachusetts First Lady Diane B. Patrick, Esq, and Margaret Blood, founder and president Mil Milagros, Inc. and founder of Strategies for Children, were recognized along-side U.S. Attorney Ortiz at the event held on May 9. More than 550 guests attended this year’s 20th anniversary event which was emceed by Lisa Hughes of WBZ-TV.
Since 1992, New England Women’s Leadership Awards (NEWLA) has recognized over 104 women throughout New England for their accomplishments in athletics, business, education, health and human services politics and more. The event was created to provide role models for the young women of Boys and Girls Clubs of Dorchester, in an effort to inspire and build leaders of the future.
Two People Indicted on Charges of Selling Stolen Items on EbayRead the Press Release
St. Louis, MO - JAMES BAGGIO and MARY SUE SCOTT, both of St. Joseph, Missouri, were indicted for allegedly stealing products from local Sam’s Clubs and re-selling them on eBay. The indictment alleges that they stole approximately $100,000 worth of merchandise from Sam’s Club locations in seven different states and sold the products to purchasers across the United States.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
According to the indictment, between February 2011 and October 2012, Baggio and Scott visited Sam’s Club locations in a number of states, including stores in the St. Louis and St. Charles areas. They would select either a large container, such as a trash can, or a cheap item that was packaged in a large box, remove the contents and hide the box on shelves throughout the store. They filled the empty box with more expensive products, usually electronics or a pet product known as Frontline. When they checked out, the cashier scanned the box and charged them for the cheaper item. The items were then allegedly sold on eBay.
If convicted, this charge carries a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Postal Inspection Service, the Des Peres Police Department and Walmart/Sam's Club Global Security. Assistant United States Attorney Stephen Casey is handling the case for the U.S. Attorney's Office.Two Defendants Sentenced for Involvement in International Criminal Network Organized to Sexually Exploit ChildrenRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Canadian and a California man were sentenced by U.S. District Judge S. Maurice Hicks for their roles in an internet-based international criminal child pornography and sexual exploitation network called Dreamboard.
Paul Graham Fry, 55, of Ontario, Canada, was sentenced to 20 years in prison and a lifetime of supervised release. According to the evidence presented at the guilty plea, Fry joined Dreamboard Dec. 2, 2009, and posted 2,722 child pornography posts to the online bulletin board.
Kevin Casey, 40, of Palos Verdes, Calif., was sentenced to 60 months in prison and five years of supervised release. According to the evidence presented at the guilty plea, Casey joined Dreamboard April 27, 2010, and posted advertisements offering to distribute child pornography to other members of the board.
Dreamboard was a private, members-only, online bulletin board that was created and operated to promote pedophilia and encourage the sexual abuse of very young children in an environment designed to avoid law enforcement detection. Fry and Casey were charged in an indictment unsealed on Aug. 3, 2011. The charges are the result of Operation Delego, an ongoing investigation launched in December 2009 that targeted individuals around the world for their participation in Dreamboard.
A total of 72 individuals, including Fry and Casey, have been charged as a result of Operation Delego. To date, 57 of the 72 charged defendants have been arrested in the United States and abroad. Forty-seven individuals have pleaded guilty, and one was convicted after trial. Forty-four of the 48 individuals who have pleaded guilty or found guilty for their roles in the conspiracy have been sentenced to prison and have received sentences ranging from five years to life in prison. Three defendants have received life sentences, including one who was convicted at trial. Fifteen of the 72 charged individuals remain at large and are known only by their online identities. Efforts to identify and apprehend these individuals continue. Operation Delego represents the largest prosecution to date in the United States of individuals who participated in an online bulletin board conceived and operated for the sole purpose of promoting child sexual abuse, disseminating child pornography and evading law enforcement.“Members of this board traded graphic images and videos of adults molesting young children – often violently; and created a massive private library of images of child sexual abuse. They encouraged, and incentivized, the creation of child pornography,” Finley said. “My office will continue to work with our federal, state and local partners and international counterparts to identify, investigate and apprehend those who prey on or exploit children. This work is a priority for the Western District of Louisiana, and I hope these sentences send another strong message that we will continue to vigorously prosecute this kind of activity to the fullest extent of the law.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case is being prosecuted by Assistant U.S. Attorney John Luke Walker of the Western District of Louisiana and Trial Attorney Keith Becker of CEOS. The Criminal Division’s Office of International Affairs provided substantial assistance. The investigation was conducted by ICE-Homeland Security Investigations, the Child Exploitation Section of ICE’s Cyber Crime Center, CEOS, CEOS’s High Technology Investigative Unit and 35 ICE offices in the United States and 11 ICE offices in 13 countries around the world, with assistance provided by numerous local and international law enforcement agencies across the United States and throughout the world.
The investigation was part of Operation Predator, a nationwide ICE initiative to identify, investigate and arrest those who prey on children, including human traffickers, international sex tourists, Internet pornographers and foreign-national predators whose crimes make them deportable.ICE encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE. This hotline is staffed around the clock by investigators. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be reported anonymously.
Two Claremont Men Indicted for Conspiring to Distribute MethamphetamineRead the Press Release
MINNEAPOLIS—A federal indictment unsealed late yesterday charges two men from the southeastern Minnesota community of Claremont with conspiring to distribute more than 500 grams of methamphetamine. The indictment, which was filed on May 6, 2013, charges Clancy Shane Amy, age 38, and Michael Steven Schoenfelder, age 33, with one count of conspiracy to distribute methamphetamine. In addition, Amy was charged with three counts of distribution of methamphetamine, one count of possession with intent to distribute methamphetamine, and one count of using and carrying a firearm during and in relation to a drug-trafficking crime. The indictment was unsealed following the defendants’ initial appearance in federal court.
The indictment alleges that from at least August 2012 through March 2013, the defendants conspired with others to distribute more than 500 grams of methamphetamine. It also alleges that Amy distributed approximately one ounce of methamphetamine on January 16, January 24, and again on March 15, 2013. In addition, on April 18, 2013, Amy allegedly possessed with intent to distribute approximately four ounces of methamphetamine while in possession of a 12-gauge shotgun; a nine-millimeter, semi-automatic pistol; and a .22-caliber, semi-automatic handgun.If convicted, the defendants face a potential maximum penalty of life in prison on the conspiracy charge. In addition, Amy faces a potential maximum penalty of 20 years on each distribution count, ten years on the possession count, and a consecutive term of five years to life on the firearm count. Any sentence, of course, would be determined by a federal district court judge.
This case is the result of an investigation by the United States Drug Enforcement Administration, the Minnesota Bureau of Criminal Apprehension, the Minnesota South Central Drug Investigation Unit and the Southeastern Minnesota Gang and Narcotics Task Force. It is being prosecuted by Assistant U.S. Attorney Allen A. Slaughter.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.
Tunisian Man Charged with Visa Fraud Related to Terrorism, Intended to Remain in U.S. to Facilitate an Act of International TerrorismRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Raymond W. Kelly, the Police Commissioner of the City of New York (“NYPD”), today announced the unsealing of charges against AHMED ABASSI, a Tunisian citizen, for fraudulently applying for a work visa in order to remain in the United States to facilitate an act of international terrorism. ABASSI was arrested on April 22, 2013, and was presented and arraigned on May 2 before U.S. District Judge Miriam Goldman Cedarbaum. Judge Cedarbaum has scheduled a conference in the case for 3:00 p.m. today.
Manhattan U.S. Attorney Preet Bharara said: "As alleged, Ahmed Abassi had an evil purpose for seeking to remain in the United States – to commit acts of terror and develop a network of terrorists here, and to use this country as a base to support the efforts of terrorists internationally. Thanks to the extraordinary vigilance of our prosecutors and law enforcement partners, Abassi has been thwarted and is being prosecuted for his alleged crimes. Protecting the residents of the Southern District, and all Americans, from terrorists is the number one priority of this Office."
FBI Assistant Director-in-Charge George Venizelos said: “As alleged, Mr. Abassi came to the United States to pursue terrorist activity and support others in the same shameful pursuit. What Mr. Abassi didn’t know was that one of his associates, privy to the details of his plan, was an undercover FBI agent. The FBI and its Joint Terrorism Task Force partners will continue working tirelessly to protect the country from those who seek to do us harm. “
NYPD Commissioner Raymond W. Kelly said: “The allegations in this case serve as still another reminder that terrorism has not abated, that we must remain vigilant, and that when we do, terrorist plots against us can be thwarted.”
As alleged in the Indictment unsealed today in Manhattan federal court and other documents filed in the case:
ABASSI, who previously resided in Canada, traveled to the United States in mid-March 2013, where he remained until his arrest. While in the United States, ABASSI, who was under surveillance by law enforcement agents at all times, maintained regular contact with an FBI undercover officer (the “UC”), and also met with Chiheb Esseghaier in New York City. Esseghaier, who was recently arrested in Canada and is currently incarcerated there on terrorism charges, was previously radicalized by ABASSI. During ABASSI’s discussions with Esseghaier and with the UC, which were recorded by the UC, ABASSI discussed his desire to engage in terrorist acts against targets in the United States and other countries, and his intention to provide support and funding to organizations engaged in terrorist activity – including the al Nusrah Front, which is recognized by the U.S. Department of State as an alias for al Qaeda in Iraq – and to recruit other individuals for terrorist plots. In particular, ABASSI discussed with the UC a number of individuals known to ABASSI and/or to his associates, whom he described as like-minded and who, in his view, would be willing to engage in terrorist activity.
On April 12, 2013, ABASSI and the UC discussed ABASSI’s efforts to recruit others for terrorist plots, and that he might be able to obtain immigration documents to remain in the United States, purportedly in order to work for the UC’s U.S.-based company. In reality, ABASSI made clear that he wanted to obtain immigration documents and to remain in the United States so that he could engage in “projects” relating to future terrorist activities, including recruitment. Thereafter, ABASSI made false statements on two immigration forms, under penalty of perjury, and subsequently mailed those forms to U.S. Citizenship and Immigration Services for processing.
The Indictment charges ABASSI with two counts of knowingly making false statements in an application to the immigration authorities for a green card and work visa, in order to facilitate an act of international terrorism. Each count carries a maximum term of 25 years in prison.
The charges and arrest of ABASSI are the result of the close cooperative efforts of the United States Attorney’s Office for the Southern District of New York, the FBI’s Joint Terrorism Task Force – which principally consists of agents and detectives of the FBI and the NYPD – and U.S. Immigration and Customs Enforcement. Mr. Bharara also thanked the National Security Division and the Royal Canadian Mounted Police for their ongoing assistance.
The prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys John P. Cronan, Michael Ferrara, and Benjamin A. Naftalis are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Ahmed Abassi Indictment
Topeka Man Pleads Guilty to RobberyRead the Press Release
TOPEKA, KAN. – A Topeka man has pleaded guilty to a federal charge of robbing a commercial store , U.S. Attorney Barry Grissom said today.
Alonzo Nathan Lax, 26, Topeka, Kan., pleaded guilty to one count of robbery and one count of brandishing a firearm in a crime of violence. In his plea, Lax admitted that on March 1, 2013, he participated in the robbery of Little Caesars Pizza at 2620 SW Sixth, Suite B, in Topeka.
Sentencing is set for Aug. 5. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on the robbery charge; and a penalty of not less than seven years, consecutive to the underlying penalty, on the firearms charge.
Co-defendants include: Johnnie Lee McCall, who is scheduled for a change of plea hearing May 20.
Jordan Christopher Lucas, who is awaiting trial.
David Pierre Wigfall, who is awaiting trial.Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
Three Individuals Sentenced for Selling Meth on the Spirit Lake Indian ReservationRead the Press Release
GRAND FORKS - U.S. Attorney Timothy Q. Purdon announced that on May 9, 2013, Fulton Merrick, Jr., Garrick Mini, and Rayone Sherman, were sentenced before U.S. District Judge Ralph R. Erickson on charges of distribution of a controlled substance.
Merrick, Jr., 37, Devils Lake, N.D., pleaded guilty on Feb. 19, 2013, to distributing a substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, in August of 2011. Judge Erickson sentenced Merrick, Jr., to 21 months’ imprisonment to be followed by three years of supervised release. Merrick, Jr., was ordered to pay a $100 special assessment to the Crime Victim’s Fund.
Mini, 32, Devils Lake, ND, pleaded guilty on Feb. 19, 2013, to distributing methamphetamine in August of 2011. Judge Erickson sentenced Mini to 24 months’ imprisonment to be followed by three years of supervised release. Mini was ordered to pay a $100 special assessment to the Crime Victim's Fund.
Sherman, 44, Fort Totten, N.D., pleaded guilty on Feb. 19, 2013, to distributing a substance containing a detectable amount of methamphetamine in May of 2011. Judge Erickson sentenced Sherman to 13 months’ imprisonment to be followed by three years of supervised release. Sherman was ordered to pay a $100 special assessment to the Crime Victim's Fund.
The incidents occurred on the Spirit Lake Indian Reservation.
The case was investigated by the Drug Enforcement Administration, Bureau of Indian Affairs, North Dakota Bureau of Criminal Investigation, and Devils Lake Police Department.
Assistant U.S. Attorney Janice M. Morley prosecuted the case.
Three Holyoke Residents Charged with Oxycodone ConspiracyRead the Press Release
BOSTON – Three Holyoke residents were charged today with conspiring to possess with intent to distribute oxycodone.
Angel Luis Medina, 31, Doel Vega, 24, and Luz Eneida Morales, all residents of Holyoke, were indicted with conspiring to possess with intent to distribute the prescription drug oxycodone.
The indictment alleges that between January 2009 and April 11, 2013, the defendants were part of a conspiracy to possess with intent to distribute oxycodone, a Schedule II controlled substance.
The charge of conspiring to possess with intent to distribute the prescription drug oxycodone carries a statutory maximum penalty of 20 years in prison, to be followed by three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz; John J. Arvinitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Kevin Niland, Postal Inspector in Charge of 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 is being prosecuted by Assistant U.S. Attorney Kevin O’Regan of Ortiz’s Springfield Office.
The details contained in the Indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Ten Indicted in Operation Black WidowRead the Press Release
United States Attorney Brendan V. Johnson announced today that ten individuals have been arrested and indicted in federal court as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Operation Black Widow has been a multi-year investigation and has resulted in the following indictments:
Sean Jason Romanjenko, 39, of Deadwood: Charged with Felon in Possession of Firearm. If convicted, Romanjenko could face a maximum sentence of 10 years in prison, a $250,000 fine, or both.
Tracy Kay Voss, 31, of Watertown: Charged with Making False Statements in the Acquisition of Firearms. If convicted, Voss could face a maximum sentence of 10 years in prison, a $250,000 fine, or both.
Todd Karl Bramer, 46, of Watertown: Charged with Possession of Firearms by a Prohibited Person. If convicted, Bramer could face a maximum sentence of 10 years in prison, a $250,000 fine, or both.
Robert Gray Graham, 72, of Watertown: Charged with Wire Fraud. If convicted, Graham could face a maximum sentence of 30 years in prison, a $1 million fine, or both.
Eric Allen Block, 37, of Watertown: Charged with conspiracy to distribute 50 grams or more of methamphetamine.
Patricio Rodriguez Pena, 55, of Sioux Falls: Charged with conspiracy to distribute 50 grams or more of methamphetamine.
Robin Lee Engel, 41, of Watertown: Charged with conspiracy to distribute 50 grams or more of methamphetamine.
Christopher McDaniel Schmidt, 39, of Watertown: Charged with conspiracy to distribute 50 grams or more of methamphetamine.
Richard Donald Ruml, 42, of Watertown: Charged with conspiracy to distribute 50 grams or more of methamphetamine.
Chad Everic Haight, 40, of Watertown: Charged with conspiracy to distribute 50 grams or more of methamphetamine.
If convicted, Block, Pena, Engel, Schmidt, Ruml, and Haight could face a mandatory minimum of 10 years in prison, maximum life, a $10 million fine, or both.
"Operation Black Widow is an extensive criminal investigation into a wide variety of alleged criminal activity, including illegal gun and drug trafficking. The Operation is led by the ATF with significant assistance from other law enforcement agencies including the Watertown Police Department, the Codington County Sheriff, the SD Division of Criminal Investigation, and the Drug Enforcement Administration,” said U.S. Attorney Johnson.
Special Agent in Charge Scott Sweetow of the ATF St. Paul Field Division added, "This ongoing proactive investigation has resulted in the arrest of several individuals who have allegedly violated numerous federal and state laws, including violent crimes, in the state of South Dakota. ATF will continue to pursue those who pose a danger to our community.”
The charges contained in the indictments are merely accusations, and all of the individuals named are presumed innocent unless and until they are proven guilty. The case is being prosecuted by Assistant U.S. Attorney John E. Haak.
Pena, Block, Haight, and Romanjenko were detained. All other defendants were released on conditions.
Tax Preparer Charged with Filing False Tax Returns on Behalf of His ClientsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigations (IRS-CI), announced that Efrain Felipe, 41, of Hallandale Beach, was charged in a two count Information with making and subscribing a false tax return on behalf of a client, and aiding and abetting, in violation of Title 26, United States Code, Sections 7206(1) and 7206(1). Defendant Felipe made his initial appearance in federal court yesterday before U.S. Magistrate Judge Alicia M. Otazo-Reyes.
According to the charges, Felipe operated a tax preparation business in Broward County, and prepared fraudulent tax returns on behalf of his customers by claiming that some customers were entitled to a First Time Home Buyers Credit (FTHBC) of $7,500.00, for properties they did not own or for properties that were purchased years earlier. Felipe also falsely claimed the FTHBC on his own personal tax return.
If convicted, Felipe faces a maximum statutory sentence of up to 3 years in prison on each count. Trial has been set for June 17, 2013 before U.S. District Judge Robert N. Scola, Jr. in Fort Lauderdale.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Norman O. Hemming, III.
An Information is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Statement of United States Attorney Loretta E. Lynch Regarding the Sentencing of Former New York State Senator Shirley HuntleyRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, former New York State Senator Shirley Huntley was sentenced to one year and one day in prison, followed by three years of supervised release. Huntley previously pleaded guilty to engaging in a mail fraud conspiracy. As part of her sentence, Huntley was ordered to make restitution of $87,700 to the New York State Department of Education for funds she embezzled, and $1,000 in connection with an unrelated bribery scheme involving a cargo-handling business at John F. Kennedy International Airport.
“The crux of this case has always been the defendant Shirley Huntley’s greed and self-interest. Promising to provide much needed assistance to the parents of New York City public schoolchildren, she set up a nonprofit organization that received state funding. Instead of serving the parents, Huntley helped herself and her family to state funds. Shirley Huntley violated the public trust and betrayed her constituents by stealing public funds for her own benefit,” stated United States Attorney Lynch. “Today’s sentence should send a clear message: we will bring to justice those who corrupt the system of laws upon which our community relies.”
Spencerport, New York - Indictment announced of two individuals and Crane-Hogan Structural Systems, Inc.Read the Press Release
Richard S. Hartunian, United States Attorney for the Northern District of New York, announced today the Indictment of Mark Pullyblank, 52, of Caledonia, NY, William Clements, 52, of Victor, New York, and Crane-Hogan Structural Systems, Inc., 3001 Brockport Road, Spencerport, New York, which employs Pullyblank and Clements.
Crane-Hogan is a company engaged in hydro-demolition in which high pressure water is used to remove concrete from buildings such as parking garages prior to resurfacing. The waste-water from the hydro-demolition process contains a slurry of industrial waste including remnants of concrete which has a very high pH. Mark Pullyblank and William Clements were project supervisors in charge of demolition projects at the Binghamton Governmental Center Parking Garage and Johnson City Wilson Hospital Parking Garage throughout 2008 and 2009.
The Clean Water Act was enacted into law in 1972. Since that time it has prohibited the discharge of pollutants into waters of the United States without approved waste-water treatment and a permit, or into a permitted publically owned treatment works (POTW), unless in compliance with an approved pretreatment program. The Susquehanna River is a navigable water of the United States that provides drinking water to numerous individuals. It drains into the Chesapeake Bay and into the Atlantic Ocean.
The three defendants are charged in a nine count felony Indictment with discharging untreated industrial waste-water from a hydro-demolition process without a permit in violation of the Clean Water Act. More specifically, Mark Pullyblank and Crane-Hogan are charged in counts one through six with discharging untreated industrial waste-water directly into the Susquehanna River from a hydro-demolition project conducted at the Binghamton Governmental Center Parking Garage. Crane-Hogan is charged in Count Seven with similar industrial waste-water discharges into the Susquehanna River from the Wilson Parking Garage, Johnson City, New York. William Clements, Mark Pullyblank, and Crane-Hogan are charged in counts 8 and 9 with discharging industrial waste-water into the Binghamton-Johnson City Joint Sewage Treatment Plant, without an approved industrial pretreatment permit, in violation of the Clean Water Act.
The allegations in the Indictment are mere accusations and all persons are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by Investigators with the New York State Department of Environmental Conservation, Bureau of Environmental Crimes Investigations and Special Agents of the Environmental Protection Agency. Assistance with this case has been provided by the New York State Office of General Services, the Binghamton City Engineer, and the Binghamton-Johnson City Publically Owned Treatment Works. The case is being prosecuted by Assistant United States Attorney Craig Benedict. Questions may be directed to AUSA Benedict at 315-448-0726.
Spencer, Iowa Couple Plead Guilty to Meth ConspiracyRead the Press Release
A Spencer, Iowa, couple who conspired to manufacture and distribute methamphetamine pled guilty May 8, 2013, in federal court in Sioux City.
Vicki Shannon, 50, and John Gekas, 46, from Spencer, Iowa, were convicted of conspiring to manufacture and distribute methamphetamine.
At the plea hearing, Shannon and Gekas each admitted their involvement in a conspiracy from about 2010 through January 2013 that manufactured and distributed more than 50 grams of actual (pure) methamphetamine. According to pseudoephedrine purchase logs obtained in the investigation, starting in January 2010 through December 2012, Gekas acquired at least 96.48 grams of pseudoephedrine and starting in August 2010 through January 2013, Shannon acquired at least 136.9 grams of pseudoephedrine for the manufacture of methamphetamine.
Sentencing before United States District Court Judge Mark W. Bennett will be set after presentence reports are prepared. Shannon and Gekas were taken into custody by the United States Marshal after the guilty pleas and will remain in custody pending sentencing. Each face a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, a special assessment of $100, and five years up to life of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Division of Narcotics Enforcement and the Clay County Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-4007.
South Bay Man Sentenced to More Than 2 Years in Prison for Stealing Government Money in Tax Fraud SchemeRead the Press Release
Tampa, FL - U.S. District Judge Mary S. Scriven sentenced Larry Lee Northern, Jr. to 32 months in federal prison for theft of government funds and aggravated identity theft. Northern pleaded guilty on January 19, 2013.
According to court documents, on October 6, 2011, Northern was stopped by law enforcement for excessive speeding. During the stop, he was found to be in possession of illegal narcotics and various prepaid debit cards. Specifically, Northern possessed 15 prepaid debit cards in the names of various individuals, as well as 17 Wal-Mart Money Cards. In addition, Northern had internal corporate documents from a local healthcare company. The documents contained the personal identification information of numerous individuals. The individuals were later identified as current or former clients of a healthcare company. Northern also had $15,700.00 in cash.
Subsequent investigation determined that 12 of the 15 prepaid debit were credited with U.S. Treasury income tax refunds. The refunds on the prepaid cards, totaling $93,879.00, were obtained as a result of the filing of fraudulent income tax returns. The fraudulent returns were filed in the names of individuals who had not given Northern permission to file the returns for them. Of the 17 Wal-Mart Money Cards possessed by Northern, nine of the cards had a total of $65,463.00 loaded onto them. These were also determined to be the proceeds of fraudulently filed income tax returns.
This case was investigated by the Internal Revenue Service Criminal Investigation, the U. S. Department of Health and Human Services, Office of the Inspector General, and the United States Postal Inspection Service. It was prosecuted by Assistant United States Attorney Amanda C. Kaiser.
Sentences for May 02 - 09, 2013Read the Press Release
Cecilio Cisneros-Cuapio, 32, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on May 9, 2013, for illegal re-entry of a previously deported alien into the United States. Cisneros-Cuapio was arrested in Jackson, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Alem Sanchez-Rangel, 36, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on May 9, 2013, for possession with intent to distribute 500 grams or more of methamphetamine. Sanchez-Rangel was arrested in Albany County, Wyoming. He received 120 months of imprisonment, to be followed by five years of supervised release and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Guillermo Francisco Barrera-Corona, 47, of Glenrock, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on May 6, 2013, for illegal re-entry of a previously deported alien into the United States. Barrera-Corona was arrested in Glenrock, Wyoming. He received time served plus ten day, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Ismael Ramirez-Andrade, 22, of Gillette, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on May 6, 2013, for illegal re-entry of a previously deported alien into the United States. Ramirez-Andrade was arrested in Gillette, Wyoming. He received time served plus ten day, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Clarence Darling, 50, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 29, 2013, for being a felon in possession of a firearm. Darling was arrested in Casper, Wyoming. He received 12 months plus one day of imprisonment, to be followed by three years of supervised release and was ordered to pay a $100.00 special assessment and a $200.00 fine. This case was investigated by the Casper Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Marshals Service.
Michael J. Plake, 48, of West Lafayette, Indiana, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on May 6, 2013, for conspiracy to commit mail and wire fraud and conspiracy to commit money laundering. Plake appeared via a summons. He received 30 months of imprisonment, to be followed by three years of supervised release and was ordered to pay a $200.00 special assessment and restitution in the amount of $1,693,704.77. This case was investigated by the U.S. Postal Service and the Federal Bureau of Investigation.
Sergio Guzman-Ceja, 25, of Salt Lake City, Utah, was sentenced by Federal District Court Judge Scott W. Skavdahl on May 2, 2013, for conspiracy to possess with intent to distribute and to distributing at least 50 grams but less than 150 grams of methamphetamine. Guzman-Ceja was arrested in Rock Springs, Wyoming. He received 87 months of imprisonment, to be followed by four years of supervised release and was ordered to pay a $100.00 special assessment and a $200.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Rochester Man Pleads Guilty to Software Mail Fraud SchemeRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Raymond Locklin, 29, of Rochester, N.Y., pleaded guilty before U.S. District Judge David G. Larimer, to conspiracy to commit mail fraud. The charge carries a maximum penalty of 20 years in prison, a fine of 250,000 or both.
Assistant U.S. Attorney Marisa J. Miller, who is handling the case, stated that the defendant, a former employee of Sutherland Global Services, conspired with co-defendant Christi Meehan, to obtain copies of Intuit Inc. software. The two then sold the software online. Locklin and Meehan placed false orders for free copies of replacement Intuit software, including TurboTax and Quicken, while employed by Sutherland Global Services. After receiving the software at addresses in Rochester, the defendants sold the software online, including on eBay.com, to customers throughout the United States. The defendants then kept the proceeds for themselves which resulted in a loss to Intuit of approximately $260,000. Christi Meehan previously pleaded guilty to conspiring to commit mail fraud.
The plea is the culmination of a joint investigation on the part of Inspectors of the United States Postal Inspection Service, under the direction of Inspector in Charge Kevin Niland, Boston Division, and Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel.Locklin will be sentenced on scheduled for August 13, 2013 at 10 a.m. before Judge Larimer. Co-defendant Christi Meehan will be sentenced by Judge Larimer on July 16, 2013 at 10 a.m.
Plant City Woman Sentenced to Prison for Tax FraudRead the Press Release
Tampa, Florida - U.S. District Judge Elizabeth A. Kovachevich sentenced Rhonda Yvette Brooks to three years and six months in federal prison for tax fraud and aggravated identity theft. As part of her sentence, the court also ordered a forfeiture money judgment and restitution order in the amount of $23,096 for funds traceable to proceeds of the offense. Brooks pleaded guilty on February 20, 2013.
According to court documents, Brooks submitted fraudulent tax returns electronically through Turbo Tax from her residence. She also submitted tax returns for several fictitious identities provided by the IRS in an undercover operation. Overall, Brooks submitted fraudulent tax returns totaling more than $70,000.
This case was investigated by members of the Tampa Bay Alliance, including IRS-Criminal Investigation and the Plant City Police Department. It was prosecuted by Assistant United States Attorney Kelley Howard-Allen.
Philadelphia Man Charged with Hobbs Act Robbery and Gun OffensesRead the Press Release
Anthony Robinson, 39, of Philadelphia, Pennsylvania, was charged today by indictment with two counts of robbery which interferes with interstate commerce and two counts of using a firearm during a crime of violence, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of life imprisonment, a mandatory minimum sentence of 32 years imprisonment, up to 5 years supervised release, a $1,000,000 fine, a $400 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Jeanine Linehan.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Passaic County, N.J., Man Charged with Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Passaic County, N.J., man was arrested today after law enforcement officers discovered alleged child pornography at his residence, U.S. Attorney Paul J. Fishman announced.
Anthony Chiampi, 48, of Totowa, N.J., is charged by criminal Complaint with one count of possessing images of child sex abuse. Chiampi is scheduled to appear today before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to the criminal Complaint; Chiampi is a Megan’s Law registrant, having been previously convicted in New Jersey Superior Court, Passaic County, for endangering the welfare of a child. He is subject to community supervision for life. On March 14, 2013, as part of that supervision, N.J. Division of Parole (“N.J. Parole”) officers conducted a home visit and discovered 63 disks that contained alleged images and videos depicting child sexual abuse, including material that involved prepubescent minors.
Because of his prior conviction, Chiampi faces a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of 20 years, and a $250,000 fine.U.S. Attorney Fishman credited the N.J. State Parole Board and special agents of the FBI Newark Division’s Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Danielle M. Corcione of the U.S. Attorney’s Office General Crimes Unit in Newark.
13-187
Defense counsel:Chiampi, Anthony Complaint
Owner of Multiple Real Estate Companies Pleads Guilty to Two Mortgage Fraud Conspiracies Involving More Than $20 MillionRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces that Oscar Torres (47, Weston) pleaded guilty today to participating in two separate mortgage fraud conspiracies. He faces a maximum penalty of 30 years in federal prison on each of the two counts.
According to the plea agreement, Torres was the owner and operator of a real estate business called Realty Alliance, LLC, and a mortgage brokerage company called Synergy Lending Group. In addition, Torres was the co-owner of a title agency called Title Executives of Broward, Inc. In or about 2005, Realty Alliance, Synergy Lending, and Title Executives (“Torres Companies”) were all consolidated in the same business location in Weston, Florida. These real estate businesses operated throughout Florida.
The first conspiracy began in June 2006, and continued through April 2007. Torres conspired with others to execute a scheme to defraud various financial institutions. The ultimate goal of the fraud scheme was to sell condominium units at The Arbors at Carrollwood, a 390-unit condominium complex located at 3939 Ehrlich Road, in Tampa. During the time frame of the conspiracy, The Arbors was in the process of being converted from an apartment complex into a condominium complex.
Torres and his co-conspirators directed their fraudulent activities at Corus Bank, N.A., and a variety of FDIC-insured and non-FDIC insured mortgage lending businesses (the “mortgage lenders”) for purposes of influencing them to approve millions of dollars in mortgage loans. In June 2006, the developers hired the Torres Companies to sell condo units at The Arbors. To entice buyers to purchase the condo units, the conspirators offered unlawful cash payments to buyers, either before or after closing. These cash payments were concealed from the lenders that were funding loans to individual buyers.
To induce mortgage lenders to approve loans for the purchase of condo units at The Arbors, the conspirators made material misrepresentations and omitted material facts from purchase and sale agreements, Uniform Residential Loan Applications, and on the HUD-1 Settlement Statements. The false and fraudulent statements included, the property’s actual purchase/sale price; the buyers intended use of the property; the buyer’s employment, gross monthly income, assets, liabilities, and bank account balances; the source of down payments and closing costs; and/or the actual disbursement of the loan proceeds at the closing. As a result of these false and fraudulent statements, Torres and his co-conspirators caused and induced the mortgage lenders to fund millions of dollars in mortgage loans. Ultimately, these mortgage lenders sustained a loss of more than $15 million as a result of this mortgage fraud conspiracy.
The second conspiracy began around the summer of 2006, and continued through about March 2007. Torres conspired with others to execute a scheme to defraud various financial institutions in connection with the sale of condominium units at The Preserve at Temple Terrace, a 392-unit condominium complex located at 7735 Fletcher Avenue, in Temple Terrace. During the time frame of the conspiracy, The Preserve was also being converted from an apartment complex into a condominium complex. The Preserve hired the Torres Companies to sell condo units at the complex.
Torres and his co-conspirators marketed the condo units at The Preserve with a series of “buyers incentives,” including a rental income guarantee, property management at no additional cost, payment of homeowner’s association fees, limited escrow deposit due at closing, and a 3% closing cost credit. In reality, the conspirators enticed buyers by offering cash payments. For each transaction, the enticements amounted to thousands of dollars paid in cash to buyers before and after closing. These payments to buyers amounted to more than $1 million in undisclosed cash incentives. The conspirators intentionally and fraudulently concealed these cash payments from the lenders through the use of a shell company called Capital Property Investments, LLC.
Torres and his co-conspirators again made false and fraudulent statements on various mortgage-related documents. In this scheme, the mortgage lenders who financed the purchase of condo units at The Preserve sustained a loss of approximately $5.6 million.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Simon Gaugush.
Owner of Mississippi River Construction Company Sentenced to Jail for Violating the Clean Air ActRead the Press Release
Franklin A. (“Al”) Bieri, 54, of Lebanon, IL, was sentenced in federal court today for violating the Clean Air Act, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced. The court ordered Bieri to serve an eight-month sentence with five months’ imprisonment and three months’ home confinement, all to be followed by three years’ supervised release. The court also ordered Bieri to pay a fine of $3,000 and a special assessment of $100.
The charges stem from Bieri’s activities at the Emerson Electric Facility, a seven-acre site in Washington Park, which Bieri purchased in order to demolish and salvage the buildings on the site. Bieri knew that the buildings on the site contained asbestos, but, in April 2010, he used untrained workers who failed to use proper removal and disposal procedures, such as wetting asbestos to limit airborne emissions and proper labeling of asbestos waste to alert others to the danger and ensure the waste went to an appropriate section of the landfill. Bieri admitted that he failed to provide written notification to the Illinois Environmental Protection Agency at least ten working days prior to beginning asbestos stripping and removal work, an offense punishable under the Clean Air Act. Asbestos is a declared hazardous air pollutant by the United States Environmental Protection Agency.
At sentencing, the district court told Bieri that this was “a profoundly serious crime” and that Bieri put “people’s lives on the line.”
“This well-heeled businessman tried to save a few bucks by sending in untrained and improperly protected people, then had them dispose of this dangerous material improperly, exposing unsuspecting landfill workers.” United States Attorney Wigginton stated. “This conduct is breathtaking, literally. This jail sentence should demonstrate that no one is above the law, and my office will continue to aggressively pursue those who threaten the environment and public safety.”
The investigation was conducted by the United States Environmental Protection Agency and the Illinois Environmental Protection Agency. The prosecution of the case is being handled by Assistant United States Attorneys Kevin F. Burke and William E. Coonan.
If you suspect an environmental crime, please call the United States Environmental Protection Agency’s hotline at 800.621.8431.
Newport News Man Sentenced for Receipt of Child PornographyRead the Press Release
NEWPORT NEWS, Va. – Glenn Rodger McGuire, 41, of Newport News, Va. was sentenced today to 188 months in prison and a lifetime of supervised release for receipt of child pornography.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, made the announcement after sentencing by United States District Judge Henry C. Morgan, Jr.
McGuire pled guilty on February 6, 2013. According to court documents, McGuire was a Cox Communications employee who set up his neighbors’ wireless router for a fee. During an FBI investigation the neighbors’ wireless router was identified as possibly being linked to a computer that was accessing and downloading child pornography. Agents contacted the neighbors believing their computer was being used, but no child pornography was found. The agents then went to the home of McGuire and after obtaining McGuire’s consent, seized his computers. Following execution of a search warrant, a forensic exam was conducted which revealed over 6,000 images of child pornography.
This case was investigated by FBI. Assistant United States Attorney Lisa R. McKeel prosecuted this case on behalf of the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.New Jersey Man Sentenced for Bogus Read Estate SchemeRead the Press Release
PHILADELPHIA - William Kevin Kelly, 59, of Ocean City, NJ, was sentenced today to 60 months in prison for a real estate scam that victimized clients and investors in the Lancaster area. Kelly pleaded guilty on January 22, 2013 to wire fraud and money laundering charges. Through businesses such as Homelynx, Bantry Property Solutions, Multi County Properties, and For Sale by Seller Plus, which he owned and operated, Kelly - who had his real estate license revoked - promised clients and investors quick returns or results on their funds. After the victims turned over their funds, Kelly would take their money, spend it for personal purposes, and string them along with various excuses, and provide them with checks that bounced. As a result of his scheme, Kelly has victimized at least 40 clients of over $718,700.
In addition to the prison term, U.S. District Court Judge John R. Padova ordered Kelly to pay restitution in the amount of $718,700 and ordered three years of supervised release.
The case was investigated by the Federal Bureau of Investigation and the Elizabethtown Borough Police Department It was prosecuted by Assistant United States Attorney Anita Eve.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Mission Man Charged with Assault with A Dangerous Weapon and Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Frank Swalley, age 29, was indicted by a federal grand jury on July 18, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 8, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to 10 years in custody, a $250,000 fine, or both; 3 years of supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation and Swalley is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Timothy M. Maher is prosecuting the case.
Swalley was remanded to the custody of the U.S. Marshal pending trial. A trial date is set for July 9, 2013.
Metro-West Drug Traffickers Charged in Oxycodone Distribution RingRead the Press Release
BOSTON – Fifteen individuals were charged today with conspiracy to distribute Oxycodone.
Charged in a criminal complaint with the drug conspiracy were Michael Bourque, 42, of Natick; Robert Hagenaars, 37, of Waltham; Brian Chisholm, 44, of Newton; Barry Goolst, 52, of Waltham; Phillip Goolst, 49, of Waltham; Thomas Ehwa, 26, of Waltham; Frank McGuire, 42, of Natick; Michael Roy, 32, of Milford; Christopher Yancey, 41, of Natick; Corey Assencoa, 43, of Hopkinton; Sean Cotter, 41, of Acton; Mark Newton, 27, of Hudson; Mark Ouellette, 43, of Shirley; John Kinney, 29, of Woburn; and Raymond Panaggio, 44, of Newton. All were arrested this morning.
According to the criminal complaint affidavit, a Court-authorized wiretap was utilized to intercept communication between the defendants over the course of approximately four months. It is alleged that Bourque, the owner and operator of DEX Corporation, a shipping company located in Natick, used DEX Corporation as a front for his drug trafficking operations. The criminal complaint affidavit details Bourque’s distribution of thousands of Oxycodone (Percocet) pills to both re-distributors and drug customers. Bourque is alleged to have acquired Oxycodone from multiple sources of narcotics supply, and utilized Yancey, Phillip Goolst, Barry Goolst, and McGuire, among others, as “runners” to distribute pills and collect drug proceeds.
On March 29, 2013, it is alleged that Ouellette and Cotter distributed 700 Oxycodone pills to Bourque. In a search of Ouellette’s home, law enforcement recovered 1,500 to 2,000 pills of suspected Oxycodone, over $30,000 in cash, and a loaded firearm.
According to court documents, from at least February 2011 through April 2013, Bourque, Hagenaars, Chisholm, Barry Goolst, Phillip Goolst, Ehwa, McGuire, Roy, Yancey, Assencoa, Cotter, Newton, Ouellette, Kinney, and Panaggio purchased, sold, and/or distributed wholesale quantities of Oxycodone.
“The U.S. Attorney’s Office is committed to working alongside our law enforcement partners to investigate and prosecute those who wreak havoc in Massachusetts cities and towns through the distribution and sale of illegal drugs,” said United States Attorney Carmen M. Ortiz. “We will continue to keep a vigilant eye over the communities and neighborhoods that we serve in an effort to ensure the highest degree of safety and quality of life for all residents. This investigation exemplifies the commitment and cooperation between all levels of law enforcement which strive, above all else, to protect their communities from crime and those that perpetrate illegal activities.”
“With these arrests today we hope to send a strong message that trafficking and distributing prescription pain medication will not be tolerated and we will utilize the full breadth of our law enforcement resources to bare. We are committed to identifying, investigating, arresting, prosecuting and sending to prison those responsible for this illegal drug trafficking,” said Special Agent in Charge Arvanitis. “This case highlights the strengths of our law enforcement partnerships and the dedication of the men and women who participated in the investigation.”
The charge of conspiracy to distribute Oxycodone carries a statutory maximum penalty of 20 years in prison, a lifetime of supervised release and a $1 million fine.
U.S. Attorney Ortiz; John J. Arvanitis, SAC of the Drug Enforcement Administration, Boston Field Division; and Middlesex County District Attorney Marian T. Ryan, made the announcement today.
The case was investigated by DEA Boston; Federal Bureau of Investigation (Boston); Homeland Security Investigations (Boston); Internal Revenue Service (Boston); Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Police Departments of Framingham, Waltham, Millis, Natick, Newton, Lexington, Arlington, Holliston, Boston, Stoughton, Haverhill, Shirley, Hopkinton, Watertown, Braintree, Woburn, Acton, Milford; Massachusetts State Police; Metropolitan Law Enforcement Council (MetroLEC); and Butte (CA) Interagency Narcotics Task Force. The case is being prosecuted by Assistant U.S. Attorneys Neil J. Gallagher and Michael I. Yoon of Ortiz's Organized Crime Drug Enforcement Task Force.
The details contained in complaint affidavit are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Maryland Man Pleads Guilty to Trafficking Stolen VehiclesRead the Press Release
PITTSBURGH - A Maryland resident pleaded guilty in federal court to a charge of conspiracy to transport stolen motor vehicles across state lines, United States Attorney David J. Hickton announced today.
Rodney D. Deminds, Jr., 23, of Belcamp, Md., pleaded guilty to one count before United States District Judge Terrence F. McVerry.
In connection with the guilty plea, the court was advised that, on at least 14 occasions between July of 2011 and April of 2012, Deminds, along with Harvey Leemore, Collin D. Powell and Trea C. Powell, and at least one other individual, traveled from Baltimore, Md., to various retail dealerships in Pennsylvania and Virginia for the purpose of stealing motorcycles and tractors from those retail dealerships. After stealing these items, the thieves took the items back to Baltimore and sold them. The items were stolen from retail dealerships located in Gibsonia, Ebensburg, Gaines and Altoona, Pa., and in Purcellville, Va. The value of the stolen items exceeded $200,000.
Judge McVerry scheduled sentencing for Aug. 15, 2013, at 10:30 a.m. The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Shaun E. Sweeney is prosecuting this case on behalf of the government.
The Pennsylvania State Police, Western PA Auto Theft Task Force, the Federal Bureau of Investigation, and detectives from Harford County, Maryland, conducted the investigation that led to the prosecution of Deminds.
Manhattan Man Pleads Guilty to Armed RobberyRead the Press Release
TOPEKA, KAN. – A man from Manhattan, Kan., has pleaded guilty to taking part in an armed robbery that set in motion a series of events leading ultimately to a deadly arson in which a Kansas State University researcher died, U.S. Attorney Barry Grissom said today.
Dennis James Denzien, 20, Manhattan, Kan., pleaded guilty to one count of aiding and abetting a robbery. In his plea, Denzien admitted that on Feb. 6, 2013, he drove co-defendant Frank Joseph Hanson to Dara’s Fast Lane at 1816 Claflin Road in Manhattan. Wearing a mask and brandishing a revolver, Hanson entered the store. After Hanson robbed the store, Denzien drove him away from the scene of the robbery.
Later that day, Riley County Police Department officers served two search warrants at a residence where Denzien lived with another defendant, Patrick Martin Scahill. Ultimately, investigators recovered a mask, gloves, a backpack and a firearm used in the robbery.
Manchester Man Sentenced to 30 Months in Prison for Drug and Firearms OffensesRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that ROBERT GENTILE, 76, of Manchester, was sentenced today by United States District Judge Robert N. Chatigny in Hartford to 30 months of imprisonment, followed by three years of supervised release, for controlled substances and firearms offenses. GENTILE also was ordered to spend the first three months of his supervised release in home confinement.
According to court documents and statements made in court, in October and November 2011, GENTILE and his associate, Andrew Parente, distributed Schedule II controlled substances, including oxycodone, in a form commonly known as OxyContin, and hydromorphone, in a form commonly known as Dilaudid.
GENTILE was arrested on February 10, 2012. Subsequent court-authorized searches of his Manchester residence resulted in the seizure of 200 Percocet tablets packaged for distribution, two .38 caliber Smith & Wesson revolvers, a .22 caliber North American Arms revolver, a .22 caliber derringer, a 12 gauge pistol-grip shotgun, numerous rounds of ammunition, boxes of 12 gauge shotgun shells, five handgun silencers, other items and approximately $22,000 in cash.
GENTILE is a previously convicted felon and, under federal law, it is illegal for a person with a previous felony conviction to possess any firearm or ammunition that has traveled in interstate or foreign commerce. Further, it is illegal under federal law for any person to possess a silencer for a firearm unless that silencer has been properly registered with the National Firearms Registry in Washington, D.C.
GENTILE has been detained since his arrest on February 10, 2012. On November 14, 2012, he pleaded guilty to one count of conspiracy to possess with intent to distribute a Schedule II controlled substance, five counts of possession with intent to distribute a Schedule II controlled substance, one count of possession of firearms by a previously convicted felon, one count of possession of ammunition by a previously convicted felon, and one count of possession of unregistered silencers.
On January 3, 2013, Parente, 76, of Hartford, pleaded guilty to one count of possession with intent to distribute and distribution of a Schedule II controlled substance. He awaits sentencing.
This matter has been investigated by the Federal Bureau of Investigation, with the assistance of the U.S. Department of Health and Human Services, Office of Inspector General, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Connecticut State Police. The case is being prosecuted by Assistant United States Attorney John H. Durham.
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