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9 May 2013
Man Sentenced to 81 Months in Prison for Traveling from France to the United States to Have Sex with Under-Aged ChildRead the Press Release
WASHINGTON - Jean Frederic Godoc, 30 of Paris, France, was sentenced today to an 81-month prison term after earlier pleading guilty to traveling to the United States to have sex with an under-aged child and one count of transportation of child pornography.
The sentencing, in the U.S. District Court for the District of Columbia, was announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, Cathy L. Lanier, Chief of the Metropolitan Police Department, and Earl L. Cook, Chief of the Alexandria, Va., Police Department.
Godoc, who pled guilty in May 2012, was sentenced by the Honorable Beryl A. Howell. Upon completion of his prison term, he will be placed on 10 years of supervised release. Godoc also must register as a sex offender for 25 years.
According to a factual proffer of evidence presented during the plea proceeding, between Sept. 1, 2011, and Dec. 22, 2011, a detective from the Alexandria, Va. Police Department, who was operating undercover as part of a Virginia statewide law enforcement initiative, entered a website which is frequented by those who have a sexual interest in children. Godoc and the undercover officer communicated online over the three-month period, and the defendant indicated an interest in traveling to the United States and having a sexual relationship with an underage girl. In arranging the visit, Godoc offered to bring presents for the girl and her younger sister. On Dec. 22, 2011, Godoc boarded a plane in Paris and traveled to the United States. Once he arrived, bearing his computer and the promised gifts, he was arrested.
A search of Godoc’s computer revealed that the defendant had transported several hundred images of child pornography to the United States.
This case was the result of collaboration by the FBI’s Child Exploitation Task Force, the Virginia Attorney General’s Office, the Northern Virginia-District of Columbia Internet Crimes Against Children Task Force, the Alexandria City Police Department, the Virginia Department of State Police, and the MPD, with assistance from other law enforcement agencies.
The prosecution was brought as part of the Department of Justice's Project Safe Childhood initiative. Project Safe Childhood is 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 those who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge Parlave, Chief Lanier and Chief Cook praised the work of Alexandria Police Department Detective Betty Sixsmith. They also commended the work of the Virginia Attorney General’s Office and the Northern Virginia-District of Columbia Internet Crimes Against Children Task Force, as well as the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. Finally, they commended the efforts of those who handled the case at the U.S. Attorney’s Office, including Criminal Investigator John Marsh, Legal Assistant Charmonique Price, and the Asset Forfeiture and Money Laundering Section. Finally, they praised the work of Assistant U.S. Attorney Julieanne Himelstein, who prosecuted the case.
13-163Man Claiming to Be Son of the President of the Congo Indicted for Defrauding Victims Out of $1.6 MillionRead the Press Release
SAN FRANCISCO – Earlier this week a federal grand jury in San Francisco indicted Blessed Marvelous Herve, a/k/a Rodrigue Herve Ngandou, a/k/a Herve Rodrigue Ngandou, a/k/a Blessed Roll Herve, of San Francisco, for wire fraud, United States Attorney MELINDA HAAG announced.
According to the Indictment, Herve, 41, devised and executed a scheme to defraud victims out of approximately $1.6 million. Herve claimed that his father was the President of the Congo and a multi-billionaire, but that the United States government had seized Herve’s assets, in excess of $43,000,000. Herve promised to pay bonus sums of more than $1,500,000 to victims in exchange for the victims’ financial support of Herve’s quest to obtain the $43,000,000 that the government purportedly had seized.
Herve also claimed that as a result the federal court case involving his seized funds, he was sent to federal prison from 2009 through 2012. During this time, Herve solicited funds from victims to assist with his alleged ongoing court proceedings and his incarceration. Herve again promised full repayment of victims’ money plus large bonuses upon the completion of his federal case and release of his funds. Specifically, in October 2012, Herve solicited and received $47,000 from a victim by falsely claiming that he needed the money to pay the Internal Revenue Service to satisfy the final judgment entered against him.
According to a criminal complaint filed in the same matter further, one of the victims was a real estate agent to whom Herve promised that his father, the multi-billionaire president of the Congo, would purchase tens of millions of dollars in real estate. That victim gave Herve tens of thousands of dollars to assist in the purported father’s real estate tours, such as the rental of bulletproof limousines. The criminal complaint alleges that to lure in the victims and bolster his credibility, Herve showed various documents, such as a letter written to him from a United States Senator, copies of awards of recognition he received from the City and County of San Francisco, a certificate of Special Congressional Recognition from a Member of Congress. When the victims ran out of money, Herve claimed that he was being deported to Puerto Rico and was not heard from again.
Herve, born in the Republic of Congo, was granted asylum in the United States in 1999 and became a United States citizen earlier this year.
Herve was arrested on a criminal complaint on April 24, 2013, in San Francisco, and he made his initial appearance in federal court in San Francisco the following day. He is currently being held in custody. The defendant's next scheduled appearance is May 22, 2013, at 11:00 a.m. for further detention proceedings before Magistrate Judge Nathanael Cousins. Herve’s first appearance in district court is scheduled before Judge John Tigar on May 31, 2013 at 9:30 a.m.
The maximum statutory penalty for wire fraud, in violation of 18 U.S.C. § 1343, is 20 years imprisonment and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Hallie Hoffman is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Elizabeth Garcia. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the United States Department of Homeland Security.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Herve must be presumed innocent unless and until proven guilty.
Long Island Doctor Sentenced to 30 Months’ Imprisonment for Distribution of Oxycodone and Income Tax EvasionRead the Press Release
Earlier today, at the federal courthouse in Central Islip, New York, Frank Telang, a Long Island doctor, was sentenced to 30 months in prison by United States District Court Judge Joseph F. Bianco. Telang previously pleaded guilty to illegally distributing oxycodone, a highly addictive prescription pain killer, outside the scope of his professional practice and not for any medical purpose, as well as income tax evasion for failing to report the cash income that he received from providing the oxycodone prescriptions. Telang was also ordered to forfeit $10,500.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Brian R. Crowell, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York, Thomas V. Dale, Commissioner, Nassau County Police Department, Joseph A. D’Amico, Superintendent, New York State Police, and Toni Weirauch, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York.
Between April 13, 2011 and October 20, 2011, Telang, who maintained offices in Bethpage and Port Jefferson Station, New York, sold prescriptions for oxycodone and other controlled substances to undercover DEA task force officers posing as patients without performing any medical examination. In addition, on the night of December 6, 2011, members of a DEA Tactical Diversion Squad, comprising DEA agents, Nassau County Police Department detectives, and New York State Police investigators, observed Telang meeting with a purported patient in a parking lot near the Long Island Expressway. When approached by law enforcement, Telang crumpled up a prescription that he had been holding and attempted to hide it in his vehicle. Telang was interviewed that night by law enforcement and subsequently returned to his office in Port Jefferson Station early the next morning where he altered the medical file of that purported patient.
Telang also failed to pay taxes on the cash he received for unlawfully providing the prescriptions.
Oxycodone is a scheduled controlled substance that may be dispensed by medical professionals but only for a legitimate medical purpose in the usual course of a doctor’s professional practice. It is a powerful and highly addictive drug, and is increasingly abused because of its potency when crushed into a powder and ingested, leading to a heroin-like euphoria.
“Telang abandoned his oath to ‘do no harm’ for the motto ‘where’s the money.’ His sale of prescriptions for this addictive and deadly drug in exchange for cash not only violated his oath but constituted a serious crime,” stated United States Attorney Lynch. “This sentence should serve as a warning to any physicians who would engage in such conduct.” Ms. Lynch thanked the Drug Enforcement Administration, the Nassau County Police Department, the New York State Police, and the Internal Revenue Service for their invaluable assistance in the investigation.
In January 2012, the United States Attorney’s Office for the Eastern District of New York and the DEA, in conjunction with the five District Attorneys in this jurisdiction, the Nassau and Suffolk County Police Departments, the New York City Police Department, and New York State Police, along with other key federal, state and local government partners, launched the Prescription Drug Initiative to mount a comprehensive response to what the U.S. Department of Health and Human Services’ Centers for Disease Control and Prevention has called an epidemic increase in the abuse of so-called opioid analgesics. So far, the Initiative has brought over 120 federal and local criminal prosecutions, taken civil enforcement action against a pharmacy, removed prescription authority from numerous rogue doctors, and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The Initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
The government’s case was prosecuted by Assistant United States Attorney Allen L. Bode.
The Defendant:
Name: FRANK TELANG
Age: 58Lawyer Sentenced to Prison Term for Stealing Money Intended for His Clients-Scheme Cost Victims More Than $100,000-Read the Press Release
WASHINGTON – Deairich R. Hunter, 48, an attorney from Washington, D.C., was sentenced today to six months in prison, to be followed by six months of home detention, on a federal charge stemming from his theft of more than $100,000 in payments from insurance companies that were intended to settle some of his clients’ disability and personal injury claims.
The sentencing took place in the U.S. District Court for the District of Columbia and was announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and William P. White, Commissioner of the District of Columbia Department of Insurance, Securities, and Banking.
Hunter pled guilty in January 2013 to a charge of theft or embezzlement in connection with health care. He was sentenced by the Honorable Beryl A. Howell. The judge ordered Hunter to pay restitution and also entered a $73,901 forfeiture money judgment against him.
According to a statement of offense, signed by the defendant as well as the government, from August 1998 until April 2009, Hunter was a member of the Bar of the District of Columbia Court of Appeals and practiced law in the District of Columbia. Also during that time period, he was a member of the bar of the state of Maryland.
Between 2003 and 2009, Hunter was retained by various individuals in disability and personal injury claim disputes. Those clients generally agreed that Hunter was entitled to one-third of any recoveries regarding their settled claims. Hunter generally agreed to notify these clients of any offers of settlement and to inform clients of significant developments, among other things. In some cases, he agreed to pay his clients’ health care expenses directly from the proceeds of the recovery in their cases.
However, on a number of occasions, Hunter settled such claims without notifying his clients and without authority to do so and then he stole the settlement proceeds, resulting in a total loss amount from this scheme in excess of $109,830. The Court sentenced Hunter to pay $253,549 in restitution for the benefit of these former clients and other former clients who were harmed by Hunter’s actions.
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge Parlave, and Commissioner White commended the efforts of those who investigated the case from the FBI’s Washington Field Office and the District of Columbia Department of Insurance, Securities and Banking. They also praised those who worked on the case from the U.S. Attorney’s Office, including Legal Assistant Donna Galindo, former Assistant U.S. Attorney Courtney G. Saleski, and Assistant U.S. Attorney Matt Graves, who prosecuted the matter.
13-162Juvenile Held Accountable for Weber Canyon FireRead the Press Release
DURANGO – A juvenile charged in the Weber Canyon Fire has been adjudicated as a juvenile delinquent for two acts of juvenile delinquency, for willfully and without authority, lighting timber on fire upon public lands and destruction of government property in excess of $1,000. The juvenile apologized for the acts of delinquency and to those who were damaged by the action of the juvenile.
The juvenile has been sentenced and the court is in the process of determining an amount of restitution.
No other information is available regarding this matter.
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Justice Department Sues to Shut Down<br /> Missouri Tax Return PreparersRead the Press Release
The United States has asked a federal court in St. Louis, Mo., to permanently bar Joseph Burns, d/b/a Electronic Tax Service, Joseph Thomas and International Tax Service Inc. (Thomas’s business), from preparing federal tax returns for others, the Justice Department announced today. The civil injunction suit alleges that Burns and Thomas, who previously worked together, prepare fraudulent tax returns for customers from the same office building in the midtown neighborhood of St. Louis.
According to the complaint, the defendants repeatedly fabricate deductions on customers’ returns and report false filing statutses in order to illegally lower their customers’ federal tax liabilities and to generate larger tax refunds. The government alleges that the defendants also prepare returns containing bogus Schedule C income which illegally allows some customers to claim the maximum earned income tax credit. Based on past audit results, the government alleges that the loss to the U.S. Treasury caused by these defendants’ ongoing return preparation activities could be as much as $6 million annually .
In the past decade the Justice Department’s Tax Division has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters. Information about these cases is available on the Justice Department website.
Related Materials:
Burns/Thomas Complaint
Justice Department Signs Agreement with Stewart County, Georgia, to Ensure Civic Access for People with DisabilitiesRead the Press Release
The Justice Department today announced an agreement with Stewart County, Ga., to improve access to all aspects of civic life for persons with disabilities. The agreement was reached under Project Civic Access (PCA), the department’s wide-ranging initiative to ensure that cities, towns and counties throughout the country comply with the Americans with Disabilities Act (ADA).
“Access to your county’s programs, services and activities is a basic civil right, and the doors to government must be open for people with disabilities,” said Eve L. Hill, Senior Counselor to the Assistant Attorney General for the Civil Rights Division. “I applaud Stewart County for its dedication to ensuring that all people have full access to the county’s public resources.”
PCA ensures that persons with disabilities have an equal opportunity to participate in civic life. As part of the PCA initiative, Justice Department staff, including investigators and architects, survey government facilities, services and programs in communities across the country. The survey identifies modifications needed for compliance with the ADA. The agreements set out steps each community must take to improve access. PCA agreements require physical modifications to facilities to make them accessible to people with disabilities.
Stewart County, established in 1830, is located in southwest Georgia approximately 37 miles from Columbus, Ga. During the compliance review, the department reviewed 11 county facilities, including the sheriff’s department, health department, senior center, municipal center and RV park, as well as several polling places. The agreement requires the county to correct accessibility barriers identified at the 11 facilities, and to conduct accessibility surveys at additional polling places and voter registration sites, as well as to survey any potential new polling places. The county will also make provisions for individuals with disabilities in its emergency management plans and procedures and will increase the accessibility of its website. Other provisions address effective communication, grievance procedures, sidewalks, and domestic violence programs. The agreement will remain in effect for three years and the department will monitor the county’s compliance with the agreement.
People interested in finding out more about the ADA, today’s agreement with Stewart County, the PCA initiative or the ADA Best Practices Tool Kit for state and local governments can access the ADA webpage at www.ada.gov or call the toll-free ADA Information Line at (800) 514-0301 (TDD 800-514-0383).
Related Materials:
Stewart County PCA Agreement
Indictments: Three Men Failed to Register as Sex OffendersRead the Press Release
TOPEKA, KAN. – Three men have been charged in separate cases in federal court in Kansas with failing to register as sex offenders, U.S. Attorney Barry Grissom said today.
Indictments allege each of the men failed to register as required by the federal Sex Offender Registration and Notification Act.
The National Center for Missing and Exploited Children estimates more than 700,000 sex offenders reside in the United States and more than 100,000 are classified as noncompliant or unregistered. More information is available at the National Sex Offender Public Web Site at www.nsopw.gov
Charged in separate cases were:
Billy Joe Lock, 69, Prairie Village, Kan., who was convicted in San Bernandino, Calif., on a charge of lewd and lascivious acts against a child under 14.
Jermaine Smith, 41, Brookfield, Mo., who was convicted in Wyandotte County District Court of attempted aggravated indecent solicitation of a child.
Bobby Moore, 31, Temple Hills, Maryland, who was convicted in Reno County District Court of aggravated indecent solicitation of a child and aggravated indecent liberties.
If convicted, they face a maximum penalty of 10 years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Prosecuting are Assistant U.S. Attorney Kim Martin and Assistant U.S. Attorney Jason Hart.OTHER INDICTMENTS
Kurt Kingsley, 30; Kyle Falkner, 30; Patricia Dornbrack, 32; and Kimberly Hogan, 36, are charged with conspiring to distribute methamphetamine. The crime is alleged to have occurred April 25, 2013, in Overland Park, Kan.
If convicted, they face a penalty of not less than 10 years in federal prison and a fine up to $10 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Trent Krug is prosecuting.
Elizabeth Pittman, 51, Kansas City, Kan., is charged with one count of theft of mail by a U.S. Postal Service employee. The crime is alleged to have occurred Jan. 10, 2013, in Johnson County, Kan.
If convicted, she faces a maximum penalty of five years in federal prison and a fine up to $250,000. The U.S. Postal Service - OIG investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
Marco Antonio Perez-Renya, 23, who is not a citizen of the United States, is charged with unlawfully re-entering the United States after having been deported. He was found April 9, 2013, in Kansas City, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney David Zabel is prosecuting.
Allen Omar Hernandez-Maradiaga, 27, a citizen of Honduras, is charged with unlawfully re-entering the United States after being deported. He was found April 30, 2013, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison without parole and a fine up to $250,000. ICE - HSI investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Alfredo Muniz-Luna, 37, who is not a citizen of the United States, is charged with unlawfully re-entering the United States after being deported. He was found March 18, 2013, in Kansas City, Kan.
If convicted, he faces a maximum penalty of 20 years and a fine up to $250,000. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Kim Martin is prosecuting.
Jimy Flores, 33, Chicago, Ill., is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred April 16, 2013, in Kansas City, Kan.
If convicted, he faces a penalty of not less than 10 years in federal prison and a fine up to $10 million. The FBI investigated. Assistant U.S. Attorney Sheri McCracken is prosecuting.
Michael James Edwards, 35, Lawrence, Kan., is charged with unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred April 28, 2013, in Lawrence, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Lawrence Police Department investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.
Donald G. Copeland, 29, is charged with one count of unlawfully carrying a firearm in furtherance of a drug crime and one count of possession with intent to distribute marijuana. The crimes are alleged to have occurred March 2, 2013, in Leavenworth, Kan.
If convicted, he faces a penalty of not less than five years in federal prison and a fine up to $250,000 on the firearm charge, and a maximum penalty of five years and a fine up to $500,000 on the drug charge. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Illegal Reentry After Deportation ChargedRead the Press Release
Cosme Adalid Torres-Flores, a/k/a “Cosme Adalid Torres,” 22, of Telford, Pennsylvania, was charged today by Indictment with one count of illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about April 19, 2013, Torres-Flores, an alien, and native and citizen of Honduras, was found in the United States after having departed the United States on or about August 29, 2009, while an order of removal was outstanding, and having been deported from the United States on or about December 28, 2010.
If convicted the defendant faces a maximum possible sentence of 10 years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations and is being prosecuted by Special Assistant United States Attorney Mark T. Sendek.
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, 215-861-8525Houstonian Sent to Prison for Receiving Child PornographyRead the Press Release
HOUSTON – Houston resident Sean Louis Walsh, 30, has been ordered to federal prison following his conviction for receipt of child pornography, United States Attorney Kenneth Magidson announced today. He pleaded guilty Feb. 21, 2013.
Today, U.S. District Judge Nancy Atlas, who accepted the guilty plea, handed Walsh a term of 78 months in federal prison. Walsh was further ordered to serve 25 years of supervised release following completion of his prison term, during which time, among other conditions, he will not have access to a computer or the Internet. Walsh will also be ordered to register as a sex offender.
Walsh had been identified in an earlier investigation involving a company that operated a “nudist” website. On Sept. 16, 2011, inspectors with the U.S. Postal Inspection Service (USPIS) sent a mailing to Walsh at his home address in Houston. The mailing contained an undercover name and address and invited individuals to become a customer of the undercover company which was supposed to be a leader in taboo and forbidden videos. There was an invitation to request a free catalog specific to the customer’s desires and the flyer also had a checklist for the customer to note such desires.
In November 2011, inspectors received an order from Walsh for two DVDs in the mail, one of which was clearly described as containing child pornography, and a check for $50 in his name. The video depicted two prepubescent boys, approximately 9-10 years old and a pubescent female, approximately 11-12 years old engaging in oral sex and masturbation.
On Dec. 6, 2011, a search warrant was executed at the home of Sean Walsh, at which time agents seized several media devices. A forensic exam was conducted on three computers found in Walsh’s bedroom which yielded approximately 4,630 images and 322 videos of child pornography. Walsh was shown copies of the emails and correspondence and he acknowledged that he had sent or received the items.
Walsh was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, prosecuted by Assistant United States Attorney Robert Stabe and investigated by USPIS, 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."
Health Care Fraud and Money LaunderingRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Christine Rahl, age 46, a resident of Social Circle, Georgia, entered a plea of guilty today to a multi-count Information before the Honorable C. Ashley Royal, United States District Judge in Macon, Georgia. Count One charged Ms. Rahl with Embezzlement in Connection with Health Care, in violation of Title 18 United States Code, Section 669. Counts Two through Five charged Ms. Rahl with Money Laundering, in violation of Title 18 United States Code, Section 1957.
Ms. Rahl was an employee with Marmalade Health which operates Abbey Hospice in Social Circle, Georgia. Ms. Rahl was in charge of payroll for Marmalade Health. The payroll and expense information was electronically submitted to Paychex who would then make electronic deposits into the accounts of employees. In order to receive extra pay, Ms. Rahl gave herself unauthorized raises and submitted false expenses for herself. Ms. Rahl continued this activity during a five and a half year time period. In her plea, she admitted that she illegally appropriated for her own use and benefit $1,586,847.14 from Marmalade Health. The money she received was deposited into the Wells Fargo Bank, where she would then write checks and use credit cards to purchase items for her personal use.
Ms. Rahl faces a maximum possible sentence of ten years imprisonment, a $250,000.00 fine and a $100.00 mandatory assessment fee per count.
“When Ms. Rahl committed health care fraud and embezzlement, she stole from a system designed to help those who are critically or terminally ill. We will continue to use our investigative resources to vigorously prosecute individuals who defraud the health care system,” said U.S. Attorney Michael Moore.
The case was investigated by agents of the Human Health Service and Internal Revenue Service. The case is being prosecuted by Assistant United States Attorney Sharon Ratley.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney’s Office at (478) 621-2602.
Grand Haven Man Sentenced on Tax Evasion ChargesRead the Press Release
GRAND RAPIDS, MICHIGAN – Matthew Daniels, 46, of Grand Haven, Michigan, having pled guilty to filing a false tax return, has been sentenced to serve 6 months in prison, followed by 1 year of supervised release, and ordered to pay more than $119,000 in restitution to the Internal Revenue Service, U.S. Attorney Patrick A. Miles, Jr. announced today. Daniels was also ordered to pay a mandatory $100 special assessment. Mr. Miles was joined in the announcement by Special Agent in Charge Erick Martinez, Internal Revenue Service Criminal Investigation.
According to the Plea Agreement filed on January 23, 2013, Daniels filed false tax returns for 2007 and 2008 with the Internal Revenue Service. In particular, Daniels under reported his gross receipts on his Schedule C for both 2007 and 2008. The 2008 tax return that Daniels filed was a false and fraudulent income tax return which under-reported gross receipts by $362,489. At sentencing, Judge Robert Holmes Bell found that the Government had established that Daniels had substantially underreported gross receipts and owed taxes to the Internal Revenue Service of $119,003.
“Cheating on your taxes is the same as stealing,” said IRS Criminal Investigation Special Agent in Charge, Erick Martinez. “We should not expect the honest taxpayer to foot the bill for those who hide income from the IRS.”
This case is being prosecuted on behalf of the United States by Assistant U.S. Attorney Matthew Borgula and was investigated by Special Agents of the IRS Criminal Investigation.
END
Gates Man Pleads Guilty to Transporting a Child for Sexual ActsRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Michael J. Rolfe, 48, of Gates, N.Y., pleaded guilty before U.S. District Judge Frank P. Geraci, to transporting a child across state lines with the intent of engaging in illegal sexual activity. The charge carries a mandatory minimum sentence of 10 years in prison, a maximum penalty of life, a fine of $250,000 or both.
Assistant U.S. Attorney Marisa J. Miller, who is handling the case, stated that in August 2012 the defendant, a long distance truck driver, took a child who was less than 12 years old on a trip from Rochester, N.Y. to locations in Texas. Rolfe admitted to engaging in sexual acts with the child while outside of New York State.
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.The plea is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, along with Investigators from the New York State Police, under the direction of Superintendent Joseph D’Amico.
Sentencing is scheduled for August 7th, at 9:30 a.m. before Judge Geraci.
Four "United Blood Nation" Gang Members Convicted of Racketeering Charges Following Six Day TrialRead the Press Release
CHARLOTTE, N.C. – A Charlotte jury convicted four gang members of the United Blood Nation (“UBN”) of racketeering conspiracy and related charges following a six day trial which ended on Wednesday, May 8, 2013, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Chief Monroe of the Charlotte Mecklenburg Police Department join U.S. Attorney Tompkins in making today’s announcement.
Jaimel Kenzie Davidson a/k/a “I-Shine,” 29, Nathaniel Graham a/k/a “Nasty”, 24, Kentrell Tyrone McIntyre a/k/a “Mustafa,” 33, and Perry Gorontent Williams a/k/a “P-Flame” or “Flame,” 27, were found guilty of engaging in racketeering conspiracy. Graham, McIntyre and Williams were also found guilty of conspiracy to commit murder in aid of racketeering activity.
According to court documents, evidence presented at trial and witness testimony:
From in or about June 2011 to in or about July 2011, the defendants carried out the conspiracy while they were incarcerated within the North Carolina Department of Corrections (NC DOC). The defendants used smuggled cellular telephones to communicate with UBN gang members who were incarcerated in various NC DOC facilities as well as gang members who were not incarcerated. The smuggled cellular telephones were used to facilitate gang activity both in the prisons as well as in communities throughout the state of North Carolina. Jurors heard cell phone conversations in which the defendants and others discussed criminal activities, including the conspiracy to commit murder of another inmate who was not a gang member, because the inmate refused to give into the demands of UBN gang members. Jurors also heard cell phone conversation in which the defendants and others discussed the distribution of controlled substances as well as violent assaults of family members of other incarcerated inmates who disrespected the UBN. In addition, the smuggled cellular telephones were used to conduct high level gang “management meetings,” during which high ranking gang members coordinated gang business activities and discussed the assignment of gang activities outside prison to low level gang members, known as “scraps.”
“Gang-related violent crimes plague our communities and spread fear and violence in our neighborhoods. This case is particularly troubling because these four gang members continued to carry out violent criminal gang activities and even planned a murder from behind bars. I commend our law enforcement partners for their hard work on this case and for their continued efforts to pursue dangerous gangs and dismantle their illegal activities in our state and elsewhere,” said U.S. Attorney Tompkins.
“The FBI is committed to dismantling the violent gangs that threaten the safety and stability of our neighborhoods. This three year investigation is an outstanding example of what federal, state, and local law enforcement can accomplish together when we attack the gangs that terrorize our communities,” said FBI’s Special Agent in Charge John Strong.
“The Charlotte-Mecklenburg Police Department and our partner agencies will continue to be diligent in letting criminals know that these neighborhoods are not a safe haven for their illegal activities,” said Chief Monroe of CMPD.
The defendants are currently in local federal custody. The racketeering conspiracy charge carries a maximum prison term of 20 years and a $250,000 fine. The conspiracy to commit murder in aid of racketeering conspiracy charge carries a maximum prison term of 10 years and a $250,000 fine. Sentencing dates for the defendants have not been set yet.
The case was investigated by the FBI and CMPD. The prosecution is handled by Assistant U.S. Attorney Jill Westmoreland Rose and Daniel Ryan of the U.S. Attorney’s Office in Charlotte.
Former UCLA Physics Professor Agrees to Plead Guilty in Federal Contract Fraud Case and Pay Nearly $1.7 Million in DamagesRead the Press Release
LOS ANGELES – A former physics professor of the University of California, Los Angeles has agreed to plead guilty to federal fraud charges and pay nearly $1.7 million in penalties for submitting fraudulent invoices related to nanotechnology research he was performing for the Defense Advanced Research Projects Agency (DARPA) and other federal government entities.
Dr. Alfred Wong, 75, who resides in the Westwood district of Los Angeles, was charged this morning with making a false claim to the United States. Wong was charged in a criminal information filed in United States District Court in Los Angeles.
Federal prosecutors also filed a plea agreement in the criminal case and an agreement to settle a potential civil lawsuit. In those documents, Wong agreed to plead guilty to the federal fraud offense and pay a total of $1,686,000 in fines, restitution and damages to the United States and UCLA.
A longtime professor of physics at UCLA, Wong served as the director of the Plasma Physics Laboratory at UCLA, as well as the director of the High Power Auroral Stimulation (HIPAS) Observatory near Fairbanks, Alaska. About 10 years ago, Wong and two companies he founded – Non-Linear Ion Dynamics, Inc. (NID) and the
International Foundation for Science, Health, and the Environment (IFSHE), both of which were based in Van Nuys – entered into a series of contracts worth more than $25 million with the United States to research the feasibility of nanotechnology batteries for defense applications and to conduct ionospheric research at HIPAS. Wong also founded and controlled Alfred Wong Technologies (AWT), a Beverly Hills-based concern he established to manage various patent rights.According to court documents filed today, Wong created fictitious invoices at AWT that claimed AWT had manufactured and sold to NID certain nanotechnology components. Fraudulent invoices totaling $160,000 were then submitted to the Defense Department for payment.
Wong also caused IFSHE and NID to submit false vouchers to the Department of Interior for improvements on his privately owned land, as well as equipment and labor costs unrelated to the government Department contract.
The charge of submitting a false claim to the government a statutory maximum penalty of five years in federal prison.
Wong will be summoned to appear in federal court to be arraigned in this case on June 6.
The case against Wong is the result of an investigation by the Defense Criminal Investigative Service and the U.S. Department of the Interior’s Office of Inspector General.
Release No. 13-066
Former Senior Executive of Arthrocare Corp. <br /> Pleads Guilty in $400 Million Securities Fraud SchemeRead the Press Release
A former senior executive of Texas-based ArthroCare Corp., a publicly traded medical device company, pleaded guilty today for his role in a scheme to defraud the company’s shareholders and members of the investing public by falsely inflating ArthroCare’s earnings, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Robert Pitman for the Western District of Texas.
David Applegate, 54, pleaded guilty before U.S. Magistrate Judge Mark Lane in Austin, Texas, to two counts of a superseding information which charges him with conspiracy to commit securities, mail and wire fraud and with a false statements violation. Applegate was the senior vice president in charge of ArthroCare’s Spine Division. Applegate admitted that he and other co-conspirators inflated falsely ArthroCare’s sales and revenue through a series of end-of-quarter transactions involving ArthroCare’s distributors and that he and other co-conspirators caused ArthroCare to file a Form 10-K for 2007 with the U.S. Securities and Exchange Commission that materially misrepresented ArthroCare’s quarterly and annual sales, revenues, expenses and earnings.
According to court documents, Applegate and others determined the type and amount of product to be shipped to distributors, notably ArthroCare’s largest distributor, DiscoCare Inc., based on ArthroCare’s need to meet sales forecasts, rather than the distributors’ actual orders. Applegate and others then caused ArthroCare to “park” millions of dollars’ worth of ArthroCare’s medical devices at its distributors at the end of each relevant quarter. ArthroCare would then report these shipments as sales in its quarterly and annual filings at the time of the shipment, enabling the company to meet or exceed internal and external earnings forecasts.
According to the superseding information, DiscoCare agreed to accept shipment of approximately $37 million of product in exchange for substantial, upfront cash commissions, extended payment terms and the ability to return product, as well as other special conditions, allowing ArthroCare to inflate falsely its revenue by tens of millions of dollars. To conceal the fact that DiscoCare owed ArthroCare a substantial amount of money on the unused inventory, ArthroCare, with Applegate’s knowledge, caused ArthroCare to acquire DiscoCare on Dec. 31, 2007.
According to court documents, between December 2005 and December 2008, ArthroCare’s shareholders held more than 25 million shares of ArthroCare stock. On July 21, 2008, after ArthroCare announced publicly that it would be restating its previously reported financial results from the third quarter 2006 through the first quarter 2008 to reflect the results of an internal investigation, the price of ArthroCare shares dropped from $40.03 to $23.21 per share. The drop in ArthroCare’s share price caused an immediate loss in shareholder value of more than $400 million.
Applegate faces a maximum prison sentence of five years in prison for each charge. A sentencing date has yet to be scheduled.
David Applegate’s co-defendant John Raffle is scheduled for trial on July 15, 2013. Defendants are presumed innocent unless and until proven guilty at trial.
This case was investigated by the FBI’s Austin Field Office. The case is being prosecuted by Deputy Chief Benjamin D. Singer and Trial Attorney Henry P. Van Dyck of the Criminal Division’s Fraud Section. The Department recognizes the substantial assistance of the U.S. Securities and Exchange Commission.
Former President of Port Arthur Company Guiltyof Federal Crimes Related to Employee DeathsRead the Press Release
The former president of Port Arthur Chemical and Environmental Services, LLC (PACES) has pleaded guilty in federal court to occupational safety crimes which resulted in the death of an employee, announced Ignacia S. Moreno, Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division and John M. Bales, U.S. Attorney for the Eastern District of Texas.
Matthew Lawrence Bowman, 41, of Houston, pleaded guilty to violating the Occupational Safety and Health Act (OSH Act) and making a false statement. Bowman admitted to not properly protecting PACES employees from exposure to hydrogen sulfide, a poisonous gas resulting in the death of truck driver Joey Sutter on Dec. 18, 2008. In addition, Bowman admitted to directing employees to falsify transportation documents to conceal that the wastewater was coming from PACES after a disposal facility put a moratorium on all wastewater shipments from PACES after received loads containing hydrogen sulfide. The guilty plea was entered today before U.S. Magistrate Judge Zack Hawthorn.
“Bowman’s actions showed a preference for profit above the safety of his employees, putting them and the public in life threatening situations by not properly identifying the dangerous materials PACES was handling,” said Assistant Attorney General Moreno. “The Justice Department will continue to vigorously enforce laws enacted for the protection of human health and the environment.”
“In this day and age, it seems inconceivable that workers would be exposed to the level of danger that was routine at PACES,” said U.S. Attorney Bales. “Mr. Bowman’s actions as the leader of the company were more than just cavalier, they were criminal and he is being held to account. We continue to grieve for the needless loss of life and the pain and suffering of Mr. Sutter’s family and friends. This investigation and prosecution is the result of an excellent combined effort of the identified agencies and I am grateful for their hard work.”
“The plea agreement reached today sends a strong signal to all who would illegally transport hazardous materials,” said Max Smith, regional Special Agent-in-Charge, U.S. Department of Transportation, Office of Inspector General. “Working with our law enforcement and prosecutorial colleagues, we will continue our efforts to ensure safety in the transport of these materials and vigorously pursue those who violate the law.”
“Laws regarding the safe and legal handling of hazardous materials are in place for a reason – to save lives,” said Ivan Vikin, Special Agent in Charge of the U.S. Environmental Protection Agency’s (EPA) criminal enforcement program in Texas. “The defendant admitted that his actions directly led to the death of one of his employees. This plea demonstrates that EPA and its partner agencies, the Texas Commission on Environmental Quality’s Environmental Crimes Unit and the Department of Transportation’s Office of the Inspector General, will prosecute anyone whose actions place the public at risk.”
According to information presented in court, Bowman was president and owner of PACES, located in Port Arthur, Texas, and CES Environmental Services (CES) located in Houston. PACES was in operation from November 2008 to November 2010, and was in the business of producing and selling caustic materials to paper mills. The production of caustic materials involved hydrogen sulfide, a poisonous gas. According to the National Institute for Occupational Safety and Health, hydrogen sulfide is an acute toxic substance that is the leading cause of sudden death in the workplace. Employers are required by the Occupational Safety and Health Administration (OSHA) to implement engineering and safety controls to prevent employees from exposure above harmful limits of hydrogen sulfide.
Bowman was responsible for approving and directingPACES production operations, the disposal of hydrogen sulfide wastewater, and ensuring implementation of employee safety precautions. In some cases, Bowman personally handled the investigation of work-related employee injuries, directed the transportation of PACES wastewater, and determined what safety equipment could be purchased or maintained. In the cases at issue, hazardous materials were transported illegally with false documents and without the required placards. Most importantly, the workers were not properly protected from exposure to hazardous gases. The exposure resulted in the deaths of two employees, Joey Sutter and Charles Sittig, who were truck drivers, at the PACES facility on Dec. 18, 2008, and Apr. 14, 2009. Placarding is critical to ensure the safety of first responders in the event of an accident or other highway incident. Bowman and PACES were indicted by a federal grand jury on July 18, 2012.
Bowman faces up to five years in federal prison and a fine of up to $250,000 at sentencing. A sentencing date has not been set. Charges remain pending against PACES. The corporation faces a fine of up to $500,000 per count.
This case was investigated by EPA Criminal Investigation Division; the U.S. Department of Transportation Office of Inspector General; the Texas Commission on Environmental Quality - Environmental Crimes Unit, part of the Texas Environmental Enforcement Task Force; the Texas Parks & Wildlife Department - Environmental Crimes Unit; the Houston Police Department - Major Offenders, Environmental Investigations Unit; the Travis County, Texas - District Attorney’s Office; the Harris County, Texas, District Attorney’s Office - Environmental Crimes Division; the Houston Fire Department; OSHA; the U.S. Coast Guard; the Port Arthur Police Department; and the Port Arthur Fire Department.
The case was prosecuted by the U.S. Attorney’s Office for the Eastern District of Texas and the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.
Former President of Port Arthur Chemical Company Guilty of Federal Crimes Related to Employee DeathsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – The former president of Port Arthur Chemical and Environmental Services, LLC (PACES) has pleaded guilty in federal court to occupational safety crimes which resulted in the death of an employee, announced John M. Bales, U.S. Attorney for the Eastern District of Texas, and Ignacia S. Moreno, Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division
Matthew Lawrence Bowman, 41, of Houston, pleaded guilty to violating the Occupational Safety and Health Act (OSH Act) and making a false statement. Bowman admitted to not properly protecting PACES employees from exposure to hydrogen sulfide, a poisonous gas resulting in the death of truck driver Joey Sutter on Dec. 18, 2008. In addition, Bowman admitted to directing employees to falsify transportation documents to conceal that the wastewater was coming from PACES after a disposal facility put a moratorium on all shipments from PACES after it received loads containing hydrogen sulfide. The guilty plea was entered today before U.S. Magistrate Judge Zack Hawthorn.“In this day and age, it seems inconceivable that workers would be exposed to the level of danger that was routine at PACES,” said U.S. Attorney John M. Bales. “Mr. Bowman’s actions as the leader of the company were more than just cavalier, they were criminal and he is being held to account. We continue to grieve for the needless loss of life and the pain and suffering of Mr. Sutter’s family and friends. This investigation and prosecution is the result of an excellent combined effort of the identified agencies and I am grateful for their hard work.”
“Bowman’s actions showed a preference for profit above the safety of his employees, putting them and the public in life threatening situations by not properly identifying the dangerous materials PACES was handling,” said Assistant Attorney General Moreno. “The Justice Department will continue to vigorously enforce laws enacted for the protection of human health and the environment.”
“The plea agreement reached today sends a strong signal to all who would illegally transport hazardous materials,” said Max Smith, regional Special Agent-in-Charge, U.S. Department of Transportation, Office of Inspector General. “Working with our law enforcement and prosecutorial colleagues, we will continue our efforts to ensure safety in the transport of these materials and vigorously pursue those who violate the law.”
“Laws regarding the safe and legal handling of hazardous materials are in place for a reason – to save lives,” said Ivan Vikin, Special Agent in Charge of EPA’s criminal enforcement program in Texas. “The defendant admitted that his actions directly led to the death of one of his employees. This plea demonstrates that EPA and its partner agencies, the Texas Commission on Environmental Quality’s Environmental Crimes Unit and the Department of Transportation’s Office of the Inspector General, will prosecute anyone whose actions place the public at risk.”
The case was prosecuted by the U.S. Attorney’s Office for the Eastern District of Texas and the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.
According to information presented in court, Bowman was president and owner of PACES, located in Port Arthur, Texas, and CES Environmental Services (CES) located in Houston. PACES was in operation from November 2008 to November 2010, and was in the business of producing and selling caustic materials to paper mills. The production of caustic materials involved hydrogen sulfide, a poisonous gas. According to the National Institute for Occupational Safety and Health, hydrogen sulfide is an acute toxic substance that is the leading cause of sudden death in the workplace. Employers are required by OSHA to implement engineering and safety controls to prevent employees from exposure above harmful limits of hydrogen sulfide.
Bowman was responsible for approving and directing PACES production operations, the disposal of hydrogen sulfide wastewater, and ensuring implementation of employee safety precautions. In some cases, Bowman personally handled the investigation of work-related employee injuries, directed the transportation of PACES wastewater, and determined what safety equipment could be purchased or maintained. In the cases at issue, hazardous materials were transported illegally with false documents and without the required placards. Most importantly, the workers were not properly protected from exposure to hazardous gases. The exposure resulted in the deaths of two employees, Joey Sutter and Charles Sittig, who were truck drivers, at the PACES facility on Dec. 18, 2008 and Apr. 14, 2009. Placarding is critical to ensure the safety of first responders in the event of an accident or other highway incident. Bowman and PACES were indicted by a federal grand jury on July 18, 2012.
Bowman faces up to five years in federal prison and a fine of up to $250,000 at sentencing. A sentencing date has not been set. Charges remain pending against PACES. The corporation faces a fine of up to $500,000 per count.
This case was investigated by EPA Criminal Investigation Division; the U.S. Department of Transportation Office of Inspector General; the Texas Commission on Environmental Quality - Environmental Crimes Unit, part of the Texas Environmental Enforcement Task Force; the Texas Parks & Wildlife Department - Environmental Crimes Unit; the Houston Police Department - Major Offenders, Environmental Investigations Unit; the Travis County, Texas - District Attorney’s Office; the Harris County, Texas, District Attorney’s Office - Environmental Crimes Division; the Houston Fire Department; OSHA; the U.S. Coast Guard; the Port Arthur Police Department; and the Port Arthur Fire Department.Former Norfolk City Employee Convicted of FraudRead the Press Release
NORFOLK, Va. – Patrick R. Lambert, 56, of Virginia Beach, Va., pleaded guilty today to fraud in connection with a local government receiving federal funds.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia and Royce E. Curtin, Special Agent in Charge, Federal Bureau of Investigation Norfolk Office, made the announcement after the plea was accepted by Chief United States District Judge Rebecca B. Smith.
Lambert faces a maximum penalty of 10 years imprisonment when he is sentenced on August 16, 2013.
In a statement of facts filed with the plea agreement, Patrick R. Lambert was a facilities maintenance supervisor with the City of Norfolk and was acquainted with Andrew T. Zoby, Jr., who had a plumbing contract with the City of Norfolk. Lambert owned a home and several rental properties in the Cities of Norfolk and Virginia Beach and at various times from approximately 2006 through 2011, would request that Zoby’s plumbing business perform certain work on the properties. Zoby’s employees performed the requested work which had a total value of $17,547.57. Lambert did not pay Zoby or his company for the work that was performed on these properties. In order to obtain reimbursement for these services, Zoby with the knowledge of Lambert, would submit fraudulent invoices for alleged plumbing services to the City of Norfolk. Lambert was aware of and acquiesced in the payment of these fraudulent invoices. As a result of this scheme, Lambert received free plumbing services in the approximate amount of $17,547.57 and Zoby was reimbursed this amount from the City of Norfolk funds. Zoby has previously pled guilty and will be sentenced on July 10, 2013, in United States District Court in Norfolk Va.
This case was investigated by Federal Bureau of Investigation, Norfolk Office. Assistant United States Attorney Robert J. Seidel, Jr. is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former Middle School Employee Sentenced in Texas to 30 Years in Prison for Producing and Distributing Child PornographyRead the Press Release
A Texas man was sentenced today to serve 30 years in prison for producing and distributing material relating to the sexual exploitation of children, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Western District of Texas Robert Pitman.
Robert Ramos Jr., 33, of Austin, Texas, was sentenced by U.S. District Judge Lee Yeakel in the Western District of Texas. In addition to his prison term, Judge Yeakel sentenced Ramos to serve 10 years of supervised release.
Ramos pleaded guilty on Oct. 31, 2012, to one count of production of child pornography and one count of distribution of child pornography.According to court documents and proceedings, Ramos, who was previously an assistant band director at Dessau Middle School in Pflugerville, Texas, admitted that he obtained sexually explicit images of a 13-year-old girl through communicating with her on Facebook using Facebook accounts that falsely portrayed him as a teenaged girl. Ramos admitted to distributing those images to Timothy Bek, a teacher in New York who was also contacting minor boys and girls for the purpose of obtaining sexually explicit images.
Ramos admitted at his plea hearing that he viewed via Internet webcam and saved to his computer a video of a five-year-old girl being sexually abused by Jennifer Mahoney, of New Jersey.
Both Bek and Mahoney have been prosecuted in their respective jurisdictions for their criminal activities relating to child pornography. Bek was sentenced in the Western District of New York on May 23, 2012, to serve 30 years in prison for production and possession of child pornography. Mahoney was sentenced in the District of New Jersey on Dec. 18, 2012, to serve 30 years in prison in for production of child pornography.
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 via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the FBI and CEOS. CEOS Trial Attorney Keith Becker and Assistant U.S. Attorney Matthew Devlin of the Western District of Texas are prosecuting this case.
Former Jackson Police Officer IndictedRead the Press Release
Jackson, Miss - Tony Davis, 48, who previously served as a Jackson Police Officer, was arraigned today in federal court before U.S. Magistrate Judge F. Keith Ball pursuant to a federal indictment charging him with bribery in connection with a series of transactions of the City of Jackson, Mississippi Police Department, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen.
Davis is scheduled for trial on June 10, 2013 before U.S. District Judge Carlton W. Reeves. If convicted, he faces a maximum penalty of 10 years in prison and a $250,000.00 fine. This case was investigated by the Federal Bureau of Investigation.
The public is reminded that an indictment is an allegation that a defendant has committed a crime. All defendants are presumed innocent until and unless proven guiltyIf you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Federal Jury in Austin Convicts Fourt in Multi-Million Dollar Money Laundering Conspiracy Involving Los Zetas Drug Trafficking Proceeds, Extortion, and BriberyRead the Press Release
Cash from the sale of drugs was laundered to purchase, train, breed and race American quarter horses in U.S.
In Austin, four men face up to 20 years in federal prison after a jury convicted them of their roles in a complex conspiracy to launder millions of dollars in illicit Los Zetas drug trafficking proceeds to purchase, train, breed, and race American quarter horses in the United States announced United States Attorney Robert Pitman, FBI Special Agent in Charge Armando Fernandez, Richard Weber, Chief, Internal Revenue Service Criminal Investigation and DEA Special Agent in Charge Javier Pena.
Jurors convicted 46–year-old Balch Springs, TX, resident Jose Trevino Morales, the brother of purported Los Zetas leaders, Miguel Trevino Morales (aka “40”) and Oscar Omar Trevino Morales (aka “42”), as well as 52-year-old Mexican businessman Francisco Colorado Cessa, 30-year-old horse trainer and purchasing agent Fernando Solis Garcia, 49-year-old horse trainer Eusevio Maldonado Huitron of one count of conspiracy to commit money laundering. Jurors acquitted horse trainer and home builder Jesus Maldonado Huitron of Austin of the money laundering conspiracy charge. No sentencing date has been scheduled for the four convicted this afternoon.
“This trial documented the violence, brutality and corruption generated by Mexican drug cartels, in this case the particularly ruthless Los Zetas. The government was able to show how the corrupting influence of drug cartels has extended into the United States with cartel bosses using an otherwise legitimate domestic industry to launder proceeds from drug trafficking and other crimes,” stated United States Attorney Robert Pitman.
U.S. Attorney Pitman added, “The Department of Justice, the Treasury Department and all our federal, state and local law enforcement partners are committed to drawing a line in the sand to prevent the Mexican cartels from importing their brand of violent crime, corruption and ruthlessness into the United States. When we find evidence of cartel activity, whether in the form of drug trafficking, firearms smuggling or money laundering, we will work tirelessly to root out the perpetrators, deprive them of their profits, and seek the punishment appropriate to their crimes.”
Evidence presented during the 12-day trial revealed that Los Zetas are a powerful drug cartel based in Mexico and generate multi-million dollar revenues from drug trafficking. Since 2008, Miguel and Oscar Trevino Morales would direct portions of the bulk cash generated from the sale of illegal narcotics to Jose Trevino and his wife, Zulema Trevino, for purchasing, training, breeding and racing American quarter horses in the United States. Testimony also revealed a shell game by the defendants involving straw purchasers and transactions worth millions of dollars in New Mexico, Oklahoma, California and Texas to disguise the source drug money and make the proceeds from the sale of quarter horses or their race winnings appear legitimate. Furthermore, the defendants implemented a scheme to structure cash deposits in amounts under $10,000 in order to circumvent mandatory bank reporting requirements.
“Today’s verdict affirms the hard work and dedication of The FBI and our law enforcement partners in combating drug cartels and their attempts to influence and control legitimate enterprises. The FBI will continue to combat the efforts of organized criminal enterprises, including the Zetas, who would seek to endanger our communities,” stated FBI SAC Armando Fernandez.
Over 400 quarter horses seized by federal authorities in June as part of the above mentioned money laundering operation have been sold for approximately $9 million. Most of the horses were sold at Heritage Place Auction Facility in Oklahoma City, OK, in the past year including A Dash of Sweet Heat, which sold for $1 million. Approximately 100 broodmares were sold prior to auction for $35,000. The federal government still retains possession of nine quarter horses, including Tempting Dash, winner of the Dash for Cash at Lone Star Park race track in Grand Prairie, Texas, on October 24, 2009; Mr. Piloto, $1 million All American Futurity winner at Ruidoso Downs on Labor Day, 2010; Dashin Follies; Separate Fire; and Y516, a yearling seized on Zule Farms in Lexington, OK. Four of the nine quarter horses, none of which are named above, are scheduled for sale at auction at Heritage Place Auction Facility in Oklahoma on May 11, 2013.
U.S. Attorney Pitman noted that the proceeds from the sale of these quarter horses are held in escrow pending the resolution of a forfeiture action. Furthermore, the Government seeks the forfeiture of farm and ranch equipment; horse racing equipment; real property in Lexington, OK, and in Bastrop County, TX; and, funds contained in three bank accounts allegedly used in the defendants’ scheme. The Government also seeks a monetary judgment in the amount of $60 million representing the amount of money derived from the conspiracy.
“This verdict is an important victory for the American public,” said Richard Weber, Chief, IRS Criminal Investigation. “The Los Zetas used U.S. businesses to legitimize their illegal drug proceeds. Today, the Los Zetas cartel was brought to justice for their drug trafficking and money laundering operations. By following the money trail, IRS CI special agents were able to financially disrupt and dismantle this major drug trafficking organization. The fall of the Los Zetas cartel is an example of the great work our agents do on a daily basis.”
Authorities continue to seek the apprehension of seven co-defendants in this case including purported leaders of the Los Zetas, 35-year-old Miguel Trevino Morales (aka “40”) and his brother, 39-year-old Oscar Trevino Morales (aka “42”), as well as 32–year-old Victor Manuel Lopez, Sergio Guerrero Rincon, 41-year-old Luis Gerardo Aguirre, Erick Jovan Lozano Diaz and Gerardo Garza Quintero. Co-defendants Zulema Trevino, the wife of Jose Trevino Morales, Alexandra Garcia Trevino, the daughter of Jose Trevino Morales, 21-year-old Raul Ramirez, 23-year-old Adan Farias, and 29–year-old Felipe Alejandro Quintero, entered pleas of guilty to related charges prior to jury selection and are awaiting sentencing.
This investigation was conducted by agents with the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation and the Drug Enforcement Administration with assistance from the United States Marshals Service, Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI) and U.S. Customs and Border Patrol, as well as local law enforcement agents in Irving, Texas, Lorena, Texas, Bruceville Eddy, Texas, Fort Worth, Texas and Laredo, Texas. The investigation received assistance from the Texas Army National Guard, Cleveland County, Oklahoma Sheriff’s Office, and the Oklahoma and New Mexico Racing Commissions. The U.S. Attorney’s Office for the Eastern District of Texas prosecuted several members of the Los Zetas drug cartel on drug trafficking charges related to this conspiracy and provided substantial assistance to this investigation. The U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) provided assistance with the forfeiture action in this case.
Federal Jury Finds Hogback, N.M., Man Guilty of Federal Rape ChargeRead the Press Release
ALBUQUERQUE – A federal jury sitting in Albuquerque, N.M., returned a guilty verdict against Myron Jim Harry, 26, on an indictment charging him with rape after a four-day trial. The guilty verdict was announced by U.S. Attorney Kenneth J. Gonzales and John Billison, Director of the Navajo Nation Division of Public Safety.
Harry, an enrolled member of the Navajo Nation who resides in Hogback, N.M., was arrested in May 2010, based on a criminal complaint alleging that he sexually abused a Navajo woman in Shiprock, N.M., which is located on the Navajo Indian Reservation, on May 6, 2010. According to the complaint, Harry committed the offense while the victim could not communicate her unwillingness to participate in the sexual act. Harry subsequently was indicted on that same charge.
The evidence at trial established that, on the night of May 5, 2010, Harry, and several others drank alcoholic beverages during the victim’s birthday party in a Shiprock apartment. The victim fell asleep next to another woman in a bedroom in the apartment. Early the next morning, Harry made his way through the bedroom’s locked door to get to the victim and she awoke to find Harry raping her. The other woman, who was awoken by the bed moving and the moaning of a male voice, observed that Harry was having sexual intercourse with the victim while the victim was asleep. The woman yelled at Harry, told him to get off of the victim, and threw him out of the apartment. Other witnesses in the apartment testified that the victim was in a state of shock and crying after being violated by Harry.
After sexually assaulting the victim, Harry fled the apartment but returned shortly thereafter because he had forgotten his keys. While retrieving his keys, Harry was confronted by several angry women who accused him of raping the victim. Another witness testified about receiving “text” messages from Harry in which, while not clear, Harry implied that he had done something wrong.
The victim subsequently was examined at a medical facility where a sexual assault evidence kit was used to preserve evidence. The examination revealed that the victim sustained physical injuries to her vaginal area. DNA analysis also revealed that Harry’s semen was found on the victim.
Harry testified in his own defense and claimed that the victim consented to having sex with him. A defense expert witness testified that there was no physical evidence to prove that this was a non-consensual intercourse.The jury deliberated approximately five hours before returning a guilty verdict against Harry.
Harry was remanded into federal custody when the jury returned its verdict and will remain detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Harry faces a maximum penalty of life in prison. Harry also will be required to register as a sex offender when he completes his prison sentence.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Kyle T. Nayback and Special Assistant U.S. Attorney David M. Adams. It was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project which is sponsored by the Justice Department’s Office on Violence Against Women, and seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Elkin Photographer Enters PleaRead the Press Release
Defendant Guilty of Child Pornography, Obscenity ChargesGREENSBORO, N.C. – An Elkin man pled guilty today to possession of child pornography and production of obscenity, announced Ripley Rand, United States Attorney for the Middle District of North Carolina.
Eric Blaine Lusk, 42, of Elkin, North Carolina, pleaded guilty to one count of possession of child pornography and one count of production and distribution of obscenity. Lusk entered his plea in Winston-Salem, North Carolina, before United States District Judge Thomas D. Schroeder.
While acting as a professional photographer for youth sporting events, Lusk took close-up photographs of the pubic area of members of a girls’ swim team while the girls were wearing swimsuits. Lusk then anonymously distributed those photographs through file-sharing networks, labeling the photographs with names associated with child pornography. By labeling the swim team photographs in that way, the photographs came up as search results for persons seeking child pornography on file-sharing networks. However, none of the members of the swim team was photographed nude or in sexual activity. Lusk’s activity with the girls’ swim team photographs is the basis of the obscenity charge. When the distribution of the swim team photographs was traced back to Lusk, a search of his computers showed he possessed child pornography independent of any photographs he had taken. Lusk was released pending his sentencing on August 29, 2013, at 9:30 a.m. in Winston-Salem.
Lusk faces a maximum sentence of up to ten years imprisonment, a fine of up to $250,000, and a term of supervised release of five years to life.
This case was investigated by members of the North Carolina Internet Crimes Against Children (ICAC) Task Force, including the Pitt County Sheriff’s Office, Elkin Police Department and North Carolina State Bureau of Investigation, and prosecuted by Assistant United States Attorney Anand P. Ramaswamy.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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.
Eight Members of New York Cell of Cybercrime Organization Indicted in $45 Million Cybercrime CampaignRead the Press Release
A four-count federal indictment was unsealed in Brooklyn charging eight defendants with participating in two worldwide cyberattacks that inflicted $45 million in losses on the global financial system in a matter of hours.1 These defendants allegedly formed the New York-based cell of an international cybercrime organization that used sophisticated intrusion techniques to hack into the systems of global financial institutions, steal prepaid debit card data, and eliminate withdrawal limits. The stolen card data was then disseminated worldwide and used in making fraudulent ATM withdrawals on a massive scale across the globe. The eight indicted defendants and their co-conspirators targeted New York City and withdrew approximately $2.8 million in a matter of hours. The defendants are charged variously with conspiracy to commit access device fraud, money laundering conspiracy, and money laundering.
Seven of the eight defendants have been arrested on the charges in the indictment: the arrested defendants are Jael Mejia Collado, Joan Luis Minier Lara, Evan Jose Peña, Jose Familia Reyes, Elvis Rafael Rodriguez, Emir Yasser Yeje, and Chung Yu-Holguin, all residents of Yonkers, New York. Rodriguez was arrested on a criminal complaint on March 27, 2013, when he attempted to flee the United States for the Dominican Republic. Peña was arrested on a criminal complaint in Yonkers, New York, on April 3, 2013. Lara, Reyes, and Yeje surrendered to law enforcement authorities on April 15, 2013, and Collado and Yu-Holguin were arrested yesterday afternoon. The indictment also charges an eighth defendant, Alberto Yusi Lajud-Peña, also known as “Prime” and “Albertico,” who is reported to have been murdered on April 27, 2013, in the Dominican Republic. The case has been assigned to United States District Judge Kiyo A. Matsumoto.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Steven Hughes, Special Agent in Charge, United States Secret Service, New York Field Office, and James T. Hayes, Jr., Special Agent in Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York.
“As charged in the indictment, the defendants and their co-conspirators participated in a massive 21st century bank heist that reached across the Internet and stretched around the globe. In the place of guns and masks, this cybercrime organization used laptops and the Internet. Moving as swiftly as data over the Internet, the organization worked its way from the computer systems of international corporations to the streets of New York City, with the defendants fanning out across Manhattan to steal millions of dollars from hundreds of ATMs in a matter of hours,” stated United States Attorney Lynch. “Law enforcement is committed to moving just as swiftly to solve these cybercrimes and bring their perpetrators to justice.”
“New technologies and the rapid growth of the Internet have eliminated the traditional borders of financial crimes and provided new opportunities for the criminal element to threaten the world’s financial systems. However, as demonstrated by the charges and arrests announced today, the Secret Service and its law enforcement partners have adapted to these technological advancements and utilized cutting edge investigative techniques to thwart this cybercriminal activity,” said Secret Service Special Agent in Charge Hughes. “I want to take this opportunity to commend the dedicated men and women of the Secret Service and HSI for their extraordinary efforts in this investigation. This case is an excellent example of the impact that can be made when the law enforcement community works together.”
“The arrests today reflect the government’s joint efforts to bring a global cybercrime enterprise to justice,” said HSI Special Agent in Charge Hayes. “HSI is proud to be part of a proactive federal law enforcement initiative that uses its collective resources to pull the plug on those who attempt to use the Internet to commit bank robbery.”
The “Unlimited Operation”
As alleged in the indictment and other court filings, the cyberattacks employed by the defendants and their co-conspirators in this case are known in the cyber underworld as “Unlimited Operations” – through its hacking “operation,” the cybercrime organization can access virtually “unlimited” criminal proceeds.
The “Unlimited Operation” begins when the cybercrime organization hacks into the computer systems of a credit card processor, compromises prepaid debit card accounts, and essentially eliminates the withdrawal limits and account balances of those accounts. The elimination of withdrawal limits enables the participants to withdraw literally unlimited amounts of cash until the operation is shut down. “Unlimited Operations” are marked by three key characteristics: (1) the surgical precision of the hackers carrying out the cyberattack, (2) the global nature of the cybercrime organization, and (3) the speed and coordination with which the organization executes its operations on the ground. These attacks rely upon both highly sophisticated hackers and organized criminal cells whose role is to withdraw the cash as quickly as possible.
As alleged in court filings, “Unlimited Operations” are executed in the following manner: First, over the course of months, the hackers plan and execute sophisticated cyber intrusions to gain unauthorized access to the computer networks of credit card processors that are responsible for processing prepaid debit card transactions. They target databases of prepaid debit cards, which are typically loaded with finite funds; such cards are used by many employers in lieu of paychecks and by charitable organizations to distribute disaster assistance. The cybercriminals breach the debit card accounts’ security protocols, then dramatically increase the balances and effectively eliminate the withdrawal limits on the accounts. The elimination of withdrawal limits enables the participants to withdraw unlimited amounts of cash until the operation is shut down. Next, the cybercrime organization cashes in, by distributing the hacked prepaid debit card numbers to trusted associates around the world – the two cyberattacks charged in this case allegedly involved 26 countries. These associates operate cells or teams of “cashers,” who encode magnetic stripe cards, such as gift cards, with the compromised card data. When the cybercrime organization distributes the personal identification numbers (PINs) for the hacked accounts, the casher cells spring into action, immediately withdrawing cash from ATMs across the globe. Meanwhile, the cybercrime organization maintains access to the computer networks of the credit card processors they have hacked in order to monitor the withdrawals. At the end of an operation, when the cards are finally shut down, the casher cells launder the proceeds, often investing the operation’s proceeds in luxury goods, and kick money back up to the cybercrime organization’s leaders.
The Charged “Unlimited Operation” Cyberattacks
According to the government’s filings, between approximately October 2012 and April 2013, the defendants and their co-conspirators conducted two Unlimited Operations. The first operation, on December 22, 2012, targeted a credit card processor that processed transactions for prepaid MasterCard debit cards issued by the National Bank of Ras Al-Khaimah PSC, also known as RAKBANK, in the United Arab Emirates. After the hackers penetrated the credit card processor’s computer network, compromised the RAKBANK prepaid card accounts, and manipulated the balances and withdrawal limits, casher cells across the globe operated a coordinated ATM withdrawal campaign. In total, more than 4,500 ATM transactions were conducted in approximately 20 countries around the world using the compromised RAKBANK account data, resulting in approximately $5 million in losses to the credit card processor and RAKBANK. In the New York City area alone, over the course of just two hours and 25 minutes, the defendants and their co-conspirators conducted approximately 750 fraudulent transactions, totaling nearly $400,000, at over 140 different ATM locations in New York City.
As alleged in the indictment and other court filings, the second of these Unlimited Operations occurred on the afternoon of February 19 and lasted into the early morning of February 20, 2013. This operation again breached the network of a credit card processor that serviced MasterCard prepaid debit cards, this time issued by the Bank of Muscat, located in Oman. Again, after the cybercrime organization’s hackers compromised Bank of Muscat prepaid debit card accounts and distributed the data, the organization’s casher cells engaged in a worldwide ATM withdrawal campaign. This attack was particularly devastating: Over the course of approximately 10 hours, casher cells in 24 countries executed approximately 36,000 transactions worldwide and withdrew about $40 million from ATMs. From 3 p.m. on February 19 through 1:26 a.m. on February 20, the defendants and their co-conspirators withdrew approximately $2.4 million in nearly 3,000 ATM withdrawals in the New York City area.
As charged in the indictment and other filings, defendant Alberto Yusi Lajud-Peña was the leader of the New York cell of this organization, and in the wake of the charged Unlimited Operations, he and defendants Elvis Rafael Rodriguez and Emir Yasser Yeje laundered hundreds of thousands of dollars in illicit cash proceeds. In one transaction alone, nearly $150,000 in the form of 7,491 $20 bills, was deposited at a bank branch in Miami, Florida, into an account controlled by defendant Alberto Yusi Lajud-Peña. Cell members also invested the criminal proceeds in portable luxury goods, such as expensive watches and cars. To date, the United States has seized hundreds of thousands of dollars in cash and bank accounts, two Rolex watches and a Mercedes SUV, and is in the process of forfeiting a Porsche Panamera. The Mercedes and Porsche were purchased with $250,000 in proceeds of this scheme.
In announcing the charges, United States Attorney Lynch praised the extraordinary efforts of the Secret Service in responding so rapidly to these attacks and investigating both the complex network intrusions that occurred overseas and the criminal activity occurring locally. Ms. Lynch also thanked the Department of Homeland Security for its invaluable role in recent arrest and seizure operations, as well as MasterCard, RAKBANK, and the Bank of Muscat for their cooperation with this investigation. Ms. Lynch expressed gratitude for the timely and extensive assistance of law enforcement authorities in Japan, Canada, Germany, and Romania, and also thanked authorities in the United Arab Emirates, Dominican Republic, Mexico, Italy, Spain, Belgium, France, United Kingdom, Latvia, Estonia, Thailand, and Malaysia for their cooperation in this investigation.
If convicted, the defendants face a maximum sentence of 10 years’ imprisonment on each of the money laundering charges and 7.5 years on the conspiracy to commit access device fraud charge, restitution, and up to $250,000 in fines. In addition, all property involved in the money laundering offenses and all proceeds of the conspiracy to commit access device fraud are subject to forfeiture.
The government’s case is being prosecuted by Assistant United States Attorneys Cristina M. Posa, Hilary Jager, Brian Morris, and Kevin Trowel.
The Defendants:
ALBERTO YUSI LAJUD-PEÑA (deceased)
Age: 23JAEL MEJIA COLLADO
Age: 23JOAN LUIS MINIER LARA
Age: 22EVAN JOSE PEÑA
Age: 35JOSE FAMILIA REYES
Age: 24ELVIS RAFAEL RODRIGUEZ
Age: 24EMIR YASSER YEJE
Age: 24CHUNG YU-HOLGUIN
Age: 22_____________________________
1 The charges contained in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Eight Facing Charges in Large Scale Heroin Distribution SchemeRead the Press Release
PITTSBURGH, Pa. – Eight current and former residents of Allegheny County have been indicted by a federal grand jury in Pittsburgh for violating federal narcotics trafficking laws on a major scale, United States Attorney David J. Hickton announced today.
The two-count indictment, unsealed today, charges Eric Ewell, 30; Canaan Bey, 26; William Fielder, 30; Terrious Harper, 29; Khalid Kareem, 29; Donnell Morris, 28; Donnie Morris, 29; and Brandon Thompson, 31, as the defendants.
According to the indictment, between January 2011 and June 2012, the defendants conspired to distribute and possess with intent to distribute one kilogram or more of heroin; and, on June 27 and June 28, 2012, Donnell Morris and Donnie Morris attempted to possess with intent to distribute one kilogram or more of heroin. The indictment seeks forfeiture of more than $1.2 million in heroin trafficking proceeds, a Porsche automobile, and a residence located in Pittsburgh.
The law provides for a maximum total sentence of at least 10 years and up to life in prison, a fine of up to $10,000,000, or both for the defendants. Under the Federal Sentencing Guidelines, the actual sentences imposed would be based upon the seriousness of the offenses and the prior criminal histories, if any, of the defendants.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Drug Enforcement Administration in Pittsburgh, New York, and Charlotte, the Pennsylvania State Police, the Pittsburgh Police Department, the Pennsylvania Attorney General's Office, the Allegheny County Police Department, the Wilkins Township Police Department, the East Pittsburgh Police Department, the New York Police Department, and the Allegheny County District Attorney's Office conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Dolton Police Officer Convicted of Civil Rights Violations for Using Excessive Force with BatonRead the Press Release
CHICAGO — A south suburban Dolton police officer was convicted today of federal civil rights charges for using excessive force against two victims outside a Dolton nightclub in May 2009. The defendant, KEVIN FLETCHER, who is on administrative leave from the department, was found guilty on two counts of violating the victims’ civil right to be free from the use of unreasonable force by a person acting under color of law. Jurors, who had the benefit of a video recording that captured most of the scene, deliberated less than an hour today after a trial that began Monday in U.S. District Court.
Fletcher, 35, of South Holland, faces a maximum penalty of 10 years in prison and a $250,000 fine on each count. He was ordered to return to court at 9:45 a.m. Monday for a hearing on the government’s motion to revoke his bond before U.S. District Judge Elaine Bucklo. Sentencing was set for 10:30 a.m. on Aug. 16.
Fletcher joined the Dolton Police Department in October 2006. The evidence at trial showed that at approximately 2 a.m. on May 17, 2009, he and other officers were working crowd control outside the former Mr. Ricky’s 141 Club, as it and other bars along Chicago Road near 141st Street in Dolton were closing. While performing his duties as a police officer, Fletcher used an expandable metal police baton as a dangerous weapon to strike two victims, Michael McPherson and Laurence Williams, once each in the head. The jury found that both victims suffered bodily injury, and the evidence showed that both required hospital treatment and staples to close their head wounds.
Assistant U.S. Attorneys Tinos Diamantatos and Megan Cunniff Church argued to the jury today that Fletcher was offended by the victims cursing at him as he directed them to depart the Chicago Road area after leaving the nightclub, and then abused his authority by striking them each over the head with his baton to “teach them a lesson.” Fletcher made no effort or attempt to arrest either victim and departed the scene after striking them with his baton, without rendering or summoning any medical aid. Both victims, as well as Fletcher, testified at the trial.
Before trial, the government dismissed an obstruction of justice count that was contained in the November 2011 indictment against Fletcher.
The guilty verdict was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Justice Department’s Civil Rights Division assisted in the investigation.
District Man Pleads Guilty to Felony Charges in Attempted Sexual Assault-Defendant Lured Victim into His Car by Offering A Ride Home-Read the Press Release
WASHINGTON – Ronnie Moore, 48, of Washington, D.C., pled guilty today to charges stemming from an incident last year in which he lured a woman into his car and then tried to sexually assault her, announced U.S. Attorney Ronald C. Machen Jr.
Moore pled guilty in the Superior Court of the District of Columbia to charges of assault with intent to commit first-degree sexual abuse and felony threats. The Honorable Ronna L. Beck scheduled sentencing for July 19, 2013. As a result of the plea, Moore must register as a sex offender for the rest of his life.
According to the government’s evidence, on March 10, 2012, at about 10 a.m., Moore was driving a four-door blue car at the intersection of Branch and Pennsylvania Avenues SE. The victim, then 19, was standing at a bus stop at that location, and Moore pulled up and offered the victim a ride. Moore said that he knew the victim’s mother, who he mentioned by name, and the victim accepted the ride.
Once inside his vehicle, Moore began complimenting the victim on her looks and asked her if she would be willing to have sex for money. When the victim refused, Moore threatened to kill her if she did not comply. The victim then punched Moore in the face and attempted to escape. Moore struggled to keep her in his car. The victim was able to escape the car, but left several personal effects in the vehicle. Moore sped away from the area.
On June 20, 2012, the victim saw Moore in a checkout line at a supermarket on Alabama Avenue SE. She and a relative confronted Moore, and then reported the sighting to a police officer working at the supermarket. Moore was then placed under arrest.
In announcing the plea, U.S. Attorney Machen commended the work performed by those who investigated the case from the Metropolitan Police Department’s Sex Crime Investigations Division. He also praised those who handled the case for the U.S. Attorney’s Office, including Victim Witness Advocate Lesley Richardson, Paralegal D’Yvonne Key, and Information Technology Specialist Kimberly Smith. Finally, he commended Assistant U.S. Attorneys Mervin A. Bourne, Jr. and Jeff T. Cook, who investigated and prosecuted the matter.
13-164Departments of Justice and Education Reach Settlement to Address and Prevent Sexual Assault and Harassment of Students at the University of Montana in MissoulaRead the Press Release
The Department of Justice and the Department of Education’s Office for Civil Rights obtained a comprehensive resolution agreement today with the University of Montana-Missoula in Missoula, Mont., to ensure that it responds swiftly and effectively to allegations of sexual assault and harassment by students. In May 2012, the United States launched a comprehensive review of the university’s handling of sexual assault and harassment complaints over a three-year period, as well as its policies, procedures, training and student education efforts. The Department of Justice today also obtained a separate agreement with the university to resolve allegations that the university’s campus police force, the Office of Public Safety (OPS), discriminated against women by failing to adequately respond to reports of on-campus sexual assault.
The two agreements announced today resolve both of the United States’ investigations of the university: under Title IX of the Education Amendments of 1972 and Title IV of the Civil Rights Act of 1964, which both prohibit sex discrimination in education programs, including sexual assault and harassment, and the Department of Justice’s investigation of the university’s campus police under the Violent Crime Control and Law Enforcement Act of 1994, and the anti-discrimination provisions of the Omnibus Crime Control and Safe Streets Act of 1968. The Department of Justice continues to seek resolution in its investigations of the Missoula Police Department and the Missoula County Attorney’s Office for their alleged failure to adequately respond to complaints of sexual assault.
The first agreement details specific steps the university will take to:
- Revise the university’s policies, procedures and investigative practices to provide a grievance procedure that ensures prompt and equitable resolution of sexual harassment and sexual assault allegations;
- Adequately investigate and respond to allegations of retaliation by students who have alleged sexual assault;
- Take sufficient effective action to fully eliminate a hostile environment based on sex, prevent its recurrence and address its effects;
- Ensure that the individuals designated to coordinate its Title IX efforts receive adequate training and coordinate these efforts effectively; and
- Revise the university’s notice of nondiscrimination to adequately inform students that sex discrimination is prohibited.
The university’s separate agreement with the Department of Justice resolving the investigation of the university’s OPS requires that the university:
- Implement or revise policies, provide training and change practices to improve its response to sexual assault, including combating gender bias;
- Work with an independent monitor, community-based organizations and other stakeholders, to develop and implement the reforms described in the agreement and to evaluate OPS’ success in effecting meaningful reform;
- Demonstrate that its implementation of the agreement has eliminated a pattern or practice of constitutional violations and that it has put in place systems and oversight that will prevent patterns or practices of unconstitutional conduct from recurring; and
- Develop procedures for gathering and analyzing data to assess the incidence and outcomes of reports of sexual assault.
The university anticipates that it will achieve compliance with this agreement within two years.
“For students to feel safe and welcome on college campuses, sexual assault and harassment must be swiftly and effectively addressed,” said Jocelyn Samuels, Principal Assistant Attorney General for the Civil Rights Division of the Department of Justice. “We applaud the university for its cooperation and for taking the steps necessary to maintain a safe learning environment for all students. These agreements provide a blueprint for colleges and universities across the country to take effective steps to prevent and address sexual assault and harassment on their campuses.”
“Through these agreements, President Engstrom and the University of Montana staff have embraced change, not the status quo–they are problem solvers. They are to be commended for developing and implementing a plan to resolve safety issues at the university. The agreements entered into today, between the United States and the University of Montana, when fully implemented, will ensure that a safe living and learning environment will exist at the university where our children will be well educated, nurtured and where they will be allowed to achieve their full potential in a wholesome academic setting,” said U.S. Attorney for the District of Montana Michael W. Cotter.
“Sexual harassment and sexual violence exact a devastating toll on students and interfere with their ability to learn in environments that are safe and free from discrimination. The Department of Education expects that today’s resolution agreement will foster a safer environment and one that gives all students the chance to succeed at the University of Montana,” said Acting Assistant Secretary for Civil Rights at the Department of Education, Seth Galanter.
The prevention of sex-based discrimination is a top priority of the Justice Department’s Civil Rights Division and U.S. Attorney Offices. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office for the District of Montana is available on its website at www.justice.gov/usao/mt. The enforcement of Title IX is also a top priority of the Department of Education’s Office for Civil Rights. Additional information about the Office for Civil Rights is available on its website at www.ed.gov/ocr/.
Related Material:
- UM Office of Public Safety Letter of Findings
- UM Letter of Findings
- UM Agreement
- UM Office of Public Safety Agreement
- Deputy Assistant Attorney General for the Civil Rights Division Roy L. Austin Jr. Speaks at the Press Conference on the Agreements with the University of Montana
Council Bluffs Man Sentenced on Methamphetamine ChargeRead the Press Release
COUNCIL BLUFFS, IA – On May 9, 2013, John Theodore Beaman, Sr., age 50, of Council Bluffs, Iowa, was sentenced in United States District Court in Council Bluffs on a charge of conspiracy to distribute methamphetamine, announced United States Attorney Nicholas A. Klinefeldt. Senior United States District Court Judge Robert W. Pratt sentenced Beaman to 120 months in prison, to be followed by 10 years of supervised release.
Beaman was also ordered to pay a $100.00 special assessment for the Crime Victim Fund. Beaman remained in the custody by the United States Marshal’s Service pending designation of the Federal Bureau of Prisons facility at which he will serve his sentence. Beaman was sentenced based upon his plea of guilty, which was entered on February 8, 2013. Beaman was sentenced for his role in a conspiracy to distribute methamphetamine in and around Council Bluffs, Iowa, from late 2009 to July of 2011. During the course of the conspiracy, approximately eleven pounds of methamphetamine were distributed. As a part of the conspiracy, Beaman frequently distributed methamphetamine from his residence, which was only about 84 feet from the property of an elementary school.
Previously sentenced in association with this investigation were: David Lynn Fisher, who was sentenced to 117 months imprisonment, plus 5 years of supervised release; Steven Lacey Etherington, who was sentenced to 150 months in prison, plus 5 years of supervised release; Nicholas Joseph Franks, who was sentenced to 133 months imprisonment, plus 5 years of supervised release for the drug trafficking conspiracy, and 120 months imprisonment, plus 3 years of supervised release for a firearms conviction, with the sentences to run concurrently; and Lisa Marie Barrett, who was sentenced to 60 months in prison, plus 5 years of supervised release.
This case was investigated by the SouthWest Iowa Narcotics Enforcement Task Force, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Colorado Man Sentenced for Defrauding the IRS Out of $1.8 Million DollarsRead the Press Release
DENVER – Thomas William Quintin, age 66, formerly of Denver, Colorado, was sentenced yesterday by U.S. District Court Judge R. Brooke Jackson to serve 63 months in federal prison for conspiracy to defraud the United States, the United States Attorney’s Office and Internal Revenue Service Criminal Investigation announced. Following his prison sentence, Quintin was ordered to spend 3 years on supervised release. Judge Jackson also ordered the defendant to pay $626,451.62 in restitution to the IRS.
Quintin was indicted by a federal grand jury in Denver on February 8, 2012. Quintin pled guilty on January 3, 2013, and was sentenced yesterday, Wednesday, May 8, 2013.
According to the stipulated facts contained in the plea agreement, starting in July 2009, Quintin participated in a conspiracy during the period of July 2009 through October 2009 to submit to the IRS thousands of false federal individual income tax returns claiming a total of $1,834,011 in refunds in the names of deceased individuals. As part of the scheme, the conspirators established, controlled, and operated a Colorado entity known as Total Tax Services and/or Total Tax and Accounting (TTS), which maintained an office location in Englewood, Colorado.
According to court records, Quintin and his coconspirator obtained from an online database the names, dates of birth, Social Security Numbers and other identifying information of deceased individuals which they then used to prepare and file tax returns in their names. They hired at least one individual whose job was to create email accounts for those deceased individuals. Establishing email accounts in the names of the deceased individuals was necessary in order to file the tax returns on-line. They also obtained employer identification numbers (EINs) for various businesses, which they used to claim falsely on tax returns that the deceased individuals had worked at those businesses during the year 2008, earned income, and had taxes withheld from that income; all to allow Quintin to claim false refunds based on that false income tax withholding.
“When criminals defraud the United States by obtaining false tax refunds they harm all Americans,” said U.S. Attorney John Walsh.
"The intent of this scheme was to swindle the government and the taxpaying public," said Stephen Boyd, Special Agent in Charge for IRS Criminal Investigation, Denver Field Office. “Furthermore, the IRS is aggressively pursuing those who steal others' identities in order to file false returns.”
This case was investigated by IRS Criminal Investigation and the Social Security Administration Office of the Inspector General, and is being prosecuted by Tax Division Trial Attorney John Scully and a member of the Economic Crime Section of the U.S. Attorney’s Office, District of Colorado.
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Cocaine Trafficker Sentenced to 8 Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Charlie Rosario, 29, formerly of North Providence, R.I., was sentenced on Wednesday to 96 months in federal prison for conspiracy and trafficking more than 500 grams of cocaine in November 2010, announced United States Attorney Peter F. Neronha; John J. Arvanitis, Special Agent in Charge of the DEA’s New England Field Division; and United States Marshal Jamie A. Hainsworth.
U.S. District Court Judge John J. McConnell, Jr. also ordered Rosario to serve five years of supervised release upon completion of his prison term. Rosario pleaded guilty on September 7, 2012, to a two-count indictment charging him with conspiracy to possess with the intent to distribute more than 500 grams of cocaine and possession with the intent to distribute more than 500 grams of cocaine.
According to information presented to the court at the time of Rosario’s guilty plea, on November 3 and 4, 2011, a person cooperating with law enforcement during an investigation into Rosario’s drug trafficking activities arranged by telephone for the delivery of all of the cocaine Rosario had in his possession in exchange for $24,500. Rosario estimated that he had approximately 850 grams of cocaine in his possession. Rosario arranged for another person to make the delivery to a Cranston residence.
According to information presented to the court, on November 4, 2010, DEA Drug Task Force agents, with the assistance of Cranston Police, arrested Julio Ernesto Soto, 31, of Salem, Mass., as he delivered the cocaine to the Cranston residence. At the time of Soto’s arrest, law enforcement agents seized 832.6 grams of cocaine.
Soto pleaded guilty on February 3, 2011, to a one-count federal indictment charging him with possession with the intent to distribute more than 500 grams of cocaine. He was sentenced on May 27, 2011, by U.S. District Court Judge William E. Smith to 60 months in federal prison, to be followed by four years of supervised release.
Rosario, who moved from the area at the time of Soto’s arrest, was located in Taunton, Mass., and arrested by the U.S. Marshals Fugitive Task Force in June 2011. Rosario has been detained in federal custody since his arrest.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/Contact: 401-709-5357
[email protected]Christopher Joseph Ladue Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on May 9, 2013, before U.S. Magistrate Judge Keith Strong, CHRISTOPHER JOSEPH LADUE, a 26-year-old resident of Browning and an enrolled member of the Blackfeet Tribe, pled guilty to sexual abuse of a minor. Sentencing has been set for August 14, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Ryan G. Weldon, the government stated it would have proved at trial the following:
On February 3, 2012, Blackfeet Child Protective Services notified the FBI that a twelve-year-old girl ("X.X.") tested positive for pregnancy at the Blackfeet Community Hospital. The school therapist treating X.X. reported to investigators that X.X. spoke about spending time with LADUE.
When questioned, LADUE admitted that he was likely the father of X.X.'s baby.
LADUE faces possible penalties of 15 years in prison, a $250,000 fine and lifetime supervision.
The investigation was conducted by the Federal Bureau of Investigation.
Child Pornography Charges Filed Against Michael Lee HaynesRead the Press Release
MICHAEL LEE HAYNES, 30, of Anniston, Alabama, was indicted by a federal grand jury today for crimes involving the sexual exploitation of children, announced U. S. Attorney Dana J. Boente.
HAYNES was charged in an Indictment for Distribution of Child Pornography. According to today’s indictment, on October 26, 2012, HAYNES distributed images of child pornography through the use of a computer.
If convicted, HAYNES faces a mandatory minimum penalty of five years and a maximum penalty of twenty years, followed by up to a lifetime term of supervised release, and a $250,000 fine.
U. S. Attorney Boente reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 case was investigated by special agents from the U. S. Department of Homeland Security, HSI. The prosecution of this case is being handled by Project Safe Childhood Coordinator, Assistant U. S. Attorney Brian M. Klebba.
(Download Indictment )
Cedar Rapids Felon and Drug User Sentenced to Almost 6 Years in Prison for Unlawful Possession of A FirearmRead the Press Release
A man who used marijuana and possessed a firearm after being convicted of a felony offense was sentenced today to almost six years in federal prison.
Andre Kase, Jr., age 20, from Cedar Rapids, Iowa, received the prison term after a February 27, 2013, guilty plea to one count of possession of a firearm by a felon and unlawful user of marijuana.
At the plea hearing, Kase admitted that on October 8, 2012, Cedar Rapids police officers responded to a report of an attempted burglary in progress. Upon arriving in the area, officers found Kase in possession of a stolen Smith and Wesson .380 caliber handgun. Kase admitted that he was a marijuana user and that he had been convicted of Burglary on September 19, 2012. Kase was also convicted in March 2012 of Carrying Weapons in which he admitted shooting a man with a stolen gun during a drug deal.
Kase was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Kase was sentenced to 71 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Kase is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was prosecuted as part of Project Safe Neighborhoods, a cooperative local, state and federal program aimed at the enhanced prosecution of gun crimes. The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and was investigated by the Cedar Rapids Police Department, the Bureau of Alcohol, Tobacco, and Firearms and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-0084.
Canton City Alderman IndictedRead the Press Release
Jackson, Miss - Calvin Louis Smith, 56, a Canton City Alderman, was arraigned today in federal court before U.S. Magistrate Judge Linda R. Anderson pursuant to a federal indictment charging him with bribery in connection with a series of transactions of the City of Canton, Mississippi, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen.
Davis is scheduled for trial on July 9, 2013 before District Judge Henry T. Wingate. If convicted of the charges, he faces a maximum penalty of 10 years in prison and a $250,000.00 fine.
This case was investigated by the Federal Bureau of Investigation.
The public is reminded that an indictment is an allegation that a defendant has committed a crime. All defendants are presumed innocent until and unless proven guilty.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
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Cambria County Woman Conspired to Grow Marijuana PlantsRead the Press Release
JOHNSTOWN, Pa. - A resident of Carrolltown, Pa., pleaded guilty in federal court to a charge of conspiracy to manufacture and possess marijuana plants, United States Attorney David J. Hickton announced today.
Judy A. Bender, 49, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that in the spring of 2011, Bender conspired to manufacture and possess with the intent to distribute more than 100 marijuana plants but less than 1,000 marijuana plants. In addition, evidence presented to the Court at the time of Bender's guilty plea reflected that she conspired with George M. Lowmaster and others to grow marijuana plants with the intent to facilitate and promote George M. Lowmaster's drug distribution organization.
Judge Gibson scheduled sentencing for Oct. 24, 2013, at 10:30 a.m. The law provides for a total sentence of 40 years in prison, a fine of $5,000,000, 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.Pending sentencing, the court continued Bender on bond.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
A joint task force, headed by the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, conducted the investigation that led to the prosecution of Bender. Other agencies participating on the task force include the Internal Revenue Service-Criminal Investigation; Pennsylvania State Police; the Pennsylvania Attorney General's Office; the Cambria County District Attorney's Office; the Carrolltown Police Department; the Patton Police Department; the Ebensburg Police Department; the Portage Police Department and the Paint Township Police Department.
Burnsville Woman Convicted of Mailing Letters Intended to Extort MoneyRead the Press Release
MINNEAPOLIS—Late yesterday afternoon, a federal-court jury found a 49-year-old Burnsville woman guilty of mailing threatening letters and letters meant to extort money. The jury convicted Deborah Mae Carlson of 12 counts of mailing threatening communications. Carlson was indicted on November 22, 2011.
The evidence presented at trial proved that on eight separate occasions, Carlson sent threatening letters to an individual. The letters were mailed on March 1, March 11, April 5, April 13, April 20, April 27, May 3, and May 24, 2010. All contained threats to injure that individual. She also sent a threatening letter to a second person. Moreover, Carlson mailed letters to various businesses in the first individual’s name.
Those letters, which demanded money, were sent to the store manager of the Eagan Target store on April 14, 2010; the store manager of the Valley Buick Pontiac GMC dealership in Apple Valley on April 15, 2010; and the Scott Lake Veterinary Center in Prior Lake on April 17, 2010.
For her crimes, Carlson faces a potential maximum penalty of 10 years in federal prison on each threat count and a total of 24 years on the three extortion counts. United States District Court Judge John R. Tunheim will determine her sentence at a future hearing, yet to be scheduled.
This case resulted from an investigation conducted by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Minnesota Bureau of Criminal Apprehension’s Forensic Science Laboratory, and the police departments of Lakeville, Apple Valley, Savage, Shakopee, and Eagan. The case was prosecuted by Assistant U.S. Attorney Jeffrey S. Paulsen.Bureau of Indian Education Employee Sentenced for Stealing Charity Funds Provided for Children Attending the Kaibeto Boarding SchoolRead the Press Release
FLAGSTAFF, Ariz. –Marcellina Tohonnie, 36, a Bureau of Indian Education employee, was sentenced on April 23, 2013 by U.S. Magistrate Judge Mark Aspey in federal court in Flagstaff, AZ, for stealing charitable donations to children attending the Kaibeto Boarding School. She received five years of supervised probation and was ordered to repay $23,226 in restitution to Children Incorporated – an international nonprofit organization assisting needy children in the U.S. and abroad.
The charges stem from a U.S. Department of the Interior, Office of Inspector General investigation of Tohonnie’s embezzlement of Children Incorporated account funds, sponsoring 47 Native American students, grades kindergarten through 8th, at the Kaibeto Boarding School. As the school’s former Children Incorporated program coordinator, Tohonnie was entrusted with accepting and using donations to purchase basic necessities (e.g. clothing, school supplies, etc.) for the children enrolled in the program. Instead, Tohonnie embezzled approximately $25,000 from the Children Incorporated account to pay for personal expenses – including clothing, salon visits, gifts, car repairs, and travel to Las Vegas, Nev.
“This case is a reflection of the Inspector General’s continued involvement in Indian Country and our dedication to insure the integrity of all U.S. Department of the Interior programs,” said Jack Rohmer, Special Agent-In-Charge.
Children Incorporated U.S. Program Director Renée Kube said, “Children Incorporated serves over 20,000 children on an annual basis, and has assisted more than 250,000 children since our founding in 1964. We provide these resources because we believe passionately that children everywhere deserve education, hope and opportunity. We are deeply grateful for the dedication, time and efforts given by the U.S. Attorney’s Office and the Office of the Inspector General.”
Under a plea agreement with the U.S. Attorney’s Office, Tohonnie pleaded guilty to one count of 18 USC '1163, embezzlement and theft from Indian tribal organizations.
The investigation in this case was conducted by the U.S. Department of the Interior, Office of Inspector General. This case was prosecuted by Assistant United States Attorney Adam Zickerman, District of Arizona, Flagstaff.
CASE NUMBER: 13mj4071
RELEASE NUMBER: 2013-038_ TohonnieFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Buffalo Man Pleads Guilty to Wire Fraud in Fraudulent Tax CaseRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Dewayne Vass, 30, of Buffalo, N.Y., pleaded guilty before U.S. District Judge William M. Skretny, to wire fraud affecting a financial institution. The charge carries a maximum penalty of 30 years in prison, a fine of $1,000,000 or both.
Assistant U.S. Attorney Trini E. Ross, who is handling the case, stated that the defendant was part of a scheme to defraud the government by obtaining money from the filing of false tax returns. Vass received the proceeds from one of the fraudulent tax returns which was filed with the Internal Revenue Service and for which the refund was placed on a prepaid debit card. The defendant used that card to obtain cash from an ATM totaling $6,248. As a result of the scheme, losses to the Internal Revenue Service totaled $72,589.00.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.The plea is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service - Criminal Investigation Division, under the direction of Special Agent- in-Charge Toni M. Weirauch, and the United States Postal Inspection Service under the direction of Kevin Niland, Inspector in Charge, Boston Division.
Sentencing is scheduled for August 26, 2013, at 9:00 a.m. before Judge Skretny.Blairsville Man Conspired to Distribute HeroinRead the Press Release
JOHNSTOWN, Pa. - A resident of Blairsville, Pa., pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Clifford Bernard Camut, Jr., 20, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, from the spring of 2011 to May 15, 2012, Camut, along with multiple co-defendants, conspired to distribute and possess with intent to distribute one kilogram or more of heroin.
Judge Gibson scheduled sentencing for Oct. 24, 2013, at 9:30 a.m. The law provides for a maximum total sentence of life in prison and a fine of $4,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pennsylvania State Police and the Indiana Police Department conducted the investigation that led to the prosecution of Camut. Other agencies participating in this investigation included the Pennsylvania Attorney General’s Office, the Cambria County Drug Task Force, the Cambria County Sheriff’s Department, the Cambria County District Attorney’s Office, the Indiana County Drug Task Force, and the Indiana County District Attorney’s Office.
Bank Employee Indicted for Embezzlement of Nearly $250,000Read the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
Nine others indicted by Federal Grand Jury
CLARKSBURG, WEST VIRGINIA —United States Attorney William J. Ihlenfeld, II, announced that DEBORAH D. RADCLIFF, age 41, of Weston, West Virginia, was named in an eight-count Indictment charging her with one count of “Embezzlement by a Bank Employee” and seven counts of “Structuring.”
According to the Indictment, while serving as the branch manager of the Weston branch bank of Huntington National Bank from July 1, 2011, to November 5, 2012, RADCLIFF embezzled and misapplied $247,249.88 from depositors’ accounts and engaged in acts of structuring to cause the bank to fail to file a Currency Transaction Report for currency transactions of $10,000 or more. To execute the scheme, RADCLIFF utilized her position as branch manager to issue or direct to be issued cashier’s checks from funds withdrawn from depositors’ accounts issued in the name of the depositor. RADCLIFF would take possession of the cashier’s check, forge the name of the depositor and cash the checks for her own personal benefit. The ages of the alleged victims ranged from 56 to 90 years, with all but one alleged victim 64 years or older.
The Indictment also seeks the forfeiture of a money judgment of the $247,249.88. If convicted, RADCLIFF faces up to 30 years imprisonment and a $1,000,000 fine on the embezzlement count and up to 10 years imprisonment and a $500,000 fine on each of the structuring counts. This case will be prosecuted by Assistant United States Attorney John C. Parr and was investigated by the Federal Bureau of Investigation.
Other indictments returned by the grand jury include: MARTINSBURG DIVISION
DUANE MCATEE, age 43, of Metz, West Virginia, was named in a one-count
Indictment charging him with “Contempt of Court.” The Indictment alleges that on April 2, 2013, MCATEE disobeyed a lawful process of a Court by failing to appear as directed. If convicted, MCATEE faces up to six months imprisonment. The case was investigated by the FBI and IRS-CI.JOSE DELEON HERNANDEZ was named in a one-count Indictment charging him with “Illegal Reentry After Removal.” If convicted, HERNANDEZ faces up to two years imprisonment and a $250,000 fine. The case was investigated by US Immigration and Customs Enforcement, Homeland Security Investigations (ICE/HSI).
These two cases will be prosecuted by Assistant United States Attorney Paul T. Camilletti.
CLARKSBURG DIVISION
BRIAN FARLEY, age 30, of Oceana, West Virginia, was named in a fourteen-count Indictment charging him with six counts of “Obtaining Drugs by Fraud” and eight counts of “Making a Material False Statement.” If convicted, FARLEY faces up to 4 years imprisonment and a $250,000 fine on the fraud charges and up to 5 years imprisonment and a $250,000 fine on the false statement charges. This case will be prosecuted by Assistant United States Attorney Robert H. McWilliams, Jr. and was investigated by the US Deparmtent of Veterans’ Affairs/Office of Inspector General-Criminal Investigations Division.
EDWARD C. CROW, age 43, a former inmate at USP Hazelton, was indicted for multiple counts of “Possession of a Prohibited Object”, “Assaulting, Resisting and Impeding Officers,” and “Assault with a Dangerous Weapon with Intent to do Bodily Harm.” If convicted, CROW faces up to 40 years imprisonment. This case will be prosecuted by Assistant United States Attorney Brandon S. Flower and was investigated by the Special Investigative Services Staff at USP Hazelton.
SHANE O. BRANTLEY, age 36, of Sutton, West Virginia, was named in a one-count Indictment charging him with “Felon in Possession of a Firearm” on April 25, 2012, in Braxton County. If convicted, BRANTLEY faces a maximum exposure of 10 years imprisonment and a fine of $250,000.
RONALD M. STARKEY, age 27, of Morgantown, West Virginia, was named in a one- count Indictment charging him with “Felon in Possession of a Firearm” on May 24, 2011, in Morgantown. If convicted, STARKEY faces a maximum exposure of 10 years imprisonment and a fine of $250,000.
These two cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and
Explosives.CHRISTOPHER WEAVER, age 36, of Morgantown, was named in a three-count Indictment charging him with one count of “Distribution of Crack Cocaine” and two counts of “Distribution of Cocaine Hydrochloride.” If convicted, WEAVER faces up to 20 years imprisonment and a $1,000,000 fine on each count. This case was investigated by the West Virginia State Police-Bureau of Criminal Investigations.
WELFORD LEE HARRIS, age 27 and CASEY SMITH, age 20, of Morgantown were named in an eight-count Indictment charging them with“Conspiracy to Possess with Intent to Distribute and to Distribute Oxycodone” and multiple counts of “Distribution of Oxycodone” and “Possession with Intent to Distribute Cocaine Hydrochloride.” If convicted, HARRIS and SMITH face up to 20 years imprisonment and a $1,000,000 fine on each count. This case was investigated by the Mon Valley Drug Task Force and the West Virginia State Police. The task force consists of officers from Morgantown Police Department, the Monongalia County Sheriff’s Department, and the Drug Enforcement Administration.
These four cases will be prosecuted by Assistant United States Attorney Zelda E. Wesley.
All of the charges contained in the above-referenced indictments are merely accusations and not evidence of guilt, and each defendant is presumed innocent until and unless proven guilty.
8 May 2013
Valley Woman Sentenced for Social Security FraudRead the Press Release
United States District Court Judge Joseph F. Bataillon sentenced Kimberly A. Butinski, age 35 of Valley, Nebraska, following her conviction for making false statements to the Social Security Administration. Butinski was sentenced to one year and one day of imprisonment to be followed by three years of supervised release. She was further ordered to pay restitution in the amount of $39, 975.68.
Butinski applied for SSA SSI disability benefits on her children’s behalf and, further, applied to be their representative payee. SSI benefits are based on total household income. Butinski falsely reported that she had separated from her husband and that he was not living in the household so that she could receive increased payment amounts. As a result of those false statements, Butinski was paid $32,593.68 that she was not entitled to receive.
On July 22, 2011, in order to secure SNAP benefits, (food stamps), and energy assistance, Butinski telephonically applied for Nebraska HHS benefits. Butinski again falsely represented her husband was not living in the household. As a result, Butinski received an additional $7,382 that she was not entitled to receive.
This case was investigated by the Social Security Administration Office of Inspector General.
Utica, New York - Two Utica area men have pled guilty to committing a string of bank robberies.Read the Press Release
United States Attorney Richard S. Hartunian announced today that two Utica area men have pled guilty to committing a string of bank robberies.
ZACHARIAH EDWARDS, 21, of Frankfort, and NICHOLAS FERRONE, 21, of Utica, admitted robbing:
Chase Bank, 6004 Court Street, Syracuse, New York of $2,156 on January 14, 2013; Berkshire Bank, 2080 Western Avenue, Guilderland, New York of $2,566 on January 23, 2013; Chase Bank, 4425 East Genesee Street, Dewitt, New York of $4,680.75 on January 28, 2013; Trustco Bank, 2050 Western Avenue, Guilderland, New York of $1,930 on February 13, 2013; Bank of America, 638 Memorial Drive, Chicopee, Massachusetts of $3,300 on February 25, 2013; Key Bank, 1610 Eastern Parkway, Schenectady, New York of $3,700 on March 1, 2013; and M&T Bank, 5170 West Taft Road, Syracuse, New York of $3,446 on March 4, 2013.
In addition, FERRONE admitted to a robbery of the Alliance Bank at 142 Genesee Street, Oneida, New York of $2,240 on January 3, 2013. Although no weapons were displayed the robbers told the tellers they were armed during the course of several of the robberies.
EDWARDS has been held without bail since his arrest on March 8, 2013. FERRONE has likewise been held without bail since his arrest on March 11, 2013. They will both continue to be detained until their sentencing which is scheduled for October 1, 2013 before Senior U.S. District Judge Frederick J. Scullin, Jr. Bank robbery carries a maximum penalty of twenty years imprisonment and a fine of $250,000 on each count.
The investigation has been a multi-agency effort, including participation by the Dewitt Police Department, the New York State Police, the Guilderland Police Department, the Oneida Police Department, the Onondaga County Sheriff’s Office, Chicopee, Massachusetts Police Department, Schenectady Police Department and the Federal Bureau of Investigation. The case is being prosecuted by AUSA Edward R. Broton.
Upper Marlboro, Maryland Couple Sentenced to Prison for Harboring A Filipino Woman in Their Home for More Than 10 YearsRead the Press Release
Ordered to Pay the Victim Restitution of $369,580.80
Greenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Gloria Edwards, age 61, to a year and a day in prison, followed by three years of supervised release, and sentenced her husband, Alfred, age 74, to three months in prison, followed by seven months of home detention as part of two years of supervised release, for harboring a Filipino national whom they brought to the United States under false pretenses. As a condition of their supervised release, the defendants are prohibited from contacting or harassing the victim in any way. Chief Judge Chasanow also ordered the Edwards’, both of Upper Marlboro, Md, to pay restitution of $369,580.80 to the victim. The sentence was imposed late on May 7, 2013, and the amount of restitution was announced today.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Deputy Assistant Attorney General for the Department of Justice Civil Rights Division Roy L. Austin, Jr.; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
“Alfred and Gloria Edwards compelled the victim to work for them for a decade for little or no salary,” said U.S. Attorney Rod J. Rosenstein. “They were able to maintain control over the victim by bringing her into the United States under false pretenses, holding her passport and arranging for a sham marriage.”
According to their plea agreements and testimony presented at their sentencing, in October 1998, the couple arranged for the victim to enter the United States from the Philippines under false pretenses. Gloria Edwards paid $5,000 to cover the costs of the woman’s entry into the United States, including payment to another individual to secure the woman’s visa under false pretenses. The Edwards’ knew that the woman entered the United States without disclosing the true purpose of her visit, or that she would be residing at the Edwards’ residence. The woman arrived in the U.S. in May 1999. Gloria Edwards drove the woman to the Edwards’ home in Upper Marlboro, where the woman primarily resided until she left the residence in August 2009.
The woman provided low cost labor to the Edwards as a domestic servant and provided care for Gloria Edwards’ mother. According to testimony at the sentencing hearing, the Edwards’ took the woman’s passport and made the woman sign a contract stating that she would have to pay the Edwards’ $20,000 if she were to leave their service, so that they could replace her.
The Edwards’ admitted that during the more than 10 years that the woman was in the United States, they took steps to fraudulently obtain permanent resident status for the woman, including arranging a sham marriage.
Prior to sentencing the Edwards’ paid $6,716.20 to satisfy the disputed amount relating to allegations that they misappropriated funds.
United States Attorney Rod J. Rosenstein praised the Baltimore Division of the FBI for its work in the investigation. Mr. Rosenstein and Mr. Austin thanked Assistant U.S. Attorney Kristi N. O’Malley and Trial Attorney Cindy Chung of the Civil Rights Division’s Human Trafficking Prosecution Unit, who prosecuted the case.
United States Obtains Settlement from City of New York over Failure to Reasonably Accommodate Disabled Firefighter Who Was 9/11 First ResponderRead the Press Release
Loretta E. Lynch, United States Attorney for the Eastern District of New York, today announced the filing of a settlement agreement with the City of New York regarding allegations that the Fire Department (FDNY) violated the Americans with Disabilities Act (ADA) by failing to reasonably accommodate a disabled firefighter.The United States’ complaint was brought on behalf of Gerald Snell, a former FDNY fire captain who suffered irreversible lung damage while participating in search, rescue, recovery, and cleanup efforts at the World Trade Center site in New York City after September 11, 2001. The complaint alleges that the FDNY failed to reasonably accommodate Mr. Snell’s disability and forced him to retire despite his desire to remain with the FDNY in a non-firefighting capacity.
Under the Settlement Agreement, the FDNY has agreed to pay Snell back pay and to adjust his monthly pension payments. In addition, the FDNY has agreed to create and implement written reasonable accommodation procedures that comply with the ADA, which will ensure that all disabled firefighters are offered the opportunity to obtain reasonable accommodation and not be forced to retire if they wish to remain with the FDNY and are qualified for available “off-line” positions that do not involve firefighting duty.
“All New York City firefighters with disabilities – and in particular, 9/11 first responders such as Mr. Snell – are entitled to the protections of the Americans with Disabilities Act,” stated U.S. Attorney Lynch. “This includes the right to receive reasonable accommodation in the form of reassignment where appropriate, so that firefighters can continue to serve the people of New York City even if they are no longer physically able to fight fires. Their experience and expertise should not be lost.”
The government’s case is being litigated by Assistant U.S. Attorney Scott R. Landau.
Two Men Sentenced to Federal Prison for Identity Theft and Tax Refund Fraud ConspiracyRead the Press Release
PENSACOLA, FLORIDA – Senior United States District Judge Roger Vinson sentenced two men following their pleas of guilty to one count of conspiracy to defraud the government, four counts of theft of public money, and two counts of aggravated identity theft. Victor T. Williams, 28, of Tampa, Florida was sentenced to forty-two months, and Kenneth R. Faison, 51, of Foley, Alabama was sentenced to twenty-four months in prison. The sentences were announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Between November 2011 and November 2012, Williams fraudulently obtained tax refund checks in the Tampa area and sent them to Faison, who deposited and cashed the checks in banks in northwest Florida and southern Alabama. Faison used accounts in the name of a church where he served as pastor to convert the checks. Once Faison had deposited the checks, he kept a percentage of the stolen funds for himself and transferred the remainder to Williams. Faison and Williams also committed identity fraud to convert the checks in at least two instances, including using identifying information stolen from a victim taxpayer in order to add the taxpayer as signatory to Faison’s bank account so he could deposit a check. As part of each defendant’s sentence, Senior Judge Vinson ordered the payment of more than $220,000, which was successfully stolen from the government as a result of this conspiracy.
This case was investigated by the Internal Revenue Service – Criminal Investigations and was prosecuted by Assistant U.S. Attorney Alicia Kim as part of a Department of Justice initiative to fight stolen identity refund fraud (SIRF). In September 2012, the Department issued Tax Division Directive 144, which sets forth expedited Department review procedures for SIRF cases, enabling law enforcement to respond quickly and effectively to the grave challenges presented in SIRF cases and to prevent the victimization of innocent taxpayers whose identities are stolen by fraudsters.
Twenty-Nine Facing Federal Drug Trafficking Charges Based on a Multi-Agency Investigation in Dona Ana CountyRead the Press Release
ALBUQUERQUE – Twenty-nine residents of Doña Ana County, N.M., and El Paso County, Texas, including 22 who were arrested this morning, are facing federal drug trafficking charges as the result of a multi-agency investigation. The charges and arrests were announced by U.S. Attorney Kenneth J. Gonzales, Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI, Scott A. Luck, Chief Patrol Agent of the El Paso Sector of the U.S. Border Patrol, Chief Robert Shilling of the New Mexico State Police, Doña Ana County Sheriff Todd Garrison and Las Cruces Police Chief Richard Williams.
The defendants are charged in 13 criminal complaints with distributing cocaine, heroin, methamphetamine and marijuana in and around southern Doña Ana County. One of the defendants also is charged with illegally entering the United States after having been deported and another is charged with being a felon in possession of firearms. The criminal complaints, which were filed under seal on April 29, 2013 and May 6, 2013, were unsealed following an early morning law enforcement operation. Five of the defendants have yet to be arrested and are considered fugitives. Two others are in state custody on other charges and will be transferred to federal custody to face the charges in the complaints. The defendants arrested today will make their initial appearances in federal court in Las Cruces later this week.
Of the 29 defendants charged, 17 are residents of Anthony, N.M., and four are residents of Anthony, Texas. The eight remaining defendants reside in the following communities: two in Berino, N.M., two in Las Cruces, N.M.; two in Canutillo, Texas, one in Los Lunas, N.M., and one in Vado, N.M.
In announcing the charges and today’s arrests, U.S. Attorney Kenneth J. Gonzales commended the cooperative efforts of the federal, state and local law enforcement and said, “Today we embarked on a coordinated effort to crackdown on drug trafficking in Doña Ana County and improve the quality of life for people who live there. These arrests are part of our statewide fight against drugs and the cycle of violence that goes hand in hand with drug trafficking. The federal law enforcement community remains committed to working with its state and local partners to safeguard families throughout New Mexico.”
“The safety and security of our communities is the FBI's highest priority,” said Carol K.O. Lee Special Agent in Charge of the Albuquerque Division of the FBI. “The scope of today's successful law enforcement operation demonstrates the commitment of a dedicated team of federal, state and local agencies to ridding our streets of violent drug traffickers. I want to thank the FBI Special Agents, U.S. Attorney's Office, U.S. Border Patrol, FBI Southern New Mexico Gang Task Force, Las Cruces-Dona Ana Metro Narcotics Agency, Doña Ana County Sheriff's Office and our other partners who worked effectively together to make this day possible.”
“We have always enjoyed a strong working relationship with local law enforcement counterparts in New Mexico, and that is a big part of the success that we are seeing in cases like this,” stated Scott A. Luck, Chief Patrol Agent of the El Paso Sector of the U.S. Border Patrol. “We will continue to dedicate the necessary resources and to work jointly toward the dismantling of criminal elements.”
The charges against the 30 defendants are the result of an intensive four-month multi-agency investigation led by the FBI’s Las Cruces Cross-Border Drug Violence Hybrid Squad and Southern New Mexico Gang Task Force that targeted known drug dealers in southern Doña Ana County. The U.S. Border Patrol and the Las Cruces- Doña Ana County Metro Narcotics Agency, which is comprised of officers from the New Mexico State Police, the Doña Ana County Sheriff’s Office and the Las Cruces Police Department, participated in the investigation, which was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
During the course of the investigation, officers oversaw approximately 40 covert drug buys and the purchase of five firearms from the defendants. This morning, teams of federal, state, county and local law enforcement officers participated in an enforcement operation that included the execution of six federal search warrants at residences in Anthony, N.M.
“Regarding the constant war against drugs, the New Mexico State Police will always be in the forefront assisting the U.S. federal agencies with this fight,” said Chief Robert Shilling of the New Mexico State Police. “Operations like this target the violence associated with this epidemic, and create halcyon living conditions in our communities.”
“The protection of everyone in Doña Ana County is the primary function of the Doña Ana County Sheriff’s Department,” said Doña Ana County Sheriff Todd Garrison. “This morning we were part of a multi-agency operation that concentrated on the community of Anthony, NM using every piece of intelligence and surveillance available to this department. Working together on a larger scale such as this operation, the efforts of federal, state and local law enforcement resulted in safer streets for the residents in Anthony. Today was a flawlessly executed example of that.”
“The use and distribution of illicit drugs in our community is a public safety issue and the Las Cruces Police Department is pleased to work alongside federal and regional law enforcement agencies in trying to eliminate this illegal activity,” said Las Cruces Police Chief Richard Williams.
These cases are being prosecuted by Assistant U.S. Attorneys Sarah M. Davenport, Shaheen P. Torgoley and Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office. They were investigated by the FBI’s Las Cruces Cross-Border Drug Violence Hybrid Squad and the Southern New Mexico Gang Task Force, the U.S. Border Patrol, the New Mexico State Police, the Dona Doña County Sheriff’s Office, the Las Cruces- Doña Ana County Metro Narcotics Agency and the Las Cruces Police Department. The U.S. Marshals Service, the SWAT and other tactical units from the El Paso and Phoenix Divisions of the FBI and the New Mexico State Police assisted in today’s law enforcement operation.
SUMMARIES OF CRIMINAL COMPLAINTS
Criminal Complaint 13-MJ-1430 charges Jose Alvarez, 27, of Anthony, N.M., and Angel Herrera, 31, of Berino, N.M., with conspiracy to distribute heroin. If convicted, Alvarez and Herrera each face a maximum penalty of 20 years in prison. Alvarez was arrested today.
Criminal Complaint 13-MJ-1431 charges Angel Torres, 44, of Anthony, Texas, with conspiracy to distribute cocaine and distribution of cocaine. If convicted, Torres faces a mandatory minimum five years and a maximum of 40 years in prison. Torres was arrested today.
Criminal Complaint 13-MJ-1432 charges Rudy Portillo, 54, and Isaiah Portillo, 19, both of Anthony, N.M., and Victor Leos, 53, of Anthony, Texas, with conspiracy to distribute heroin. If convicted, Rudy Portillo, Isaiah Portillo and Leos each face a maximum penalty of 20 years in prison. Isaiah Portillo and Leos were arrested today. Rudy Portillo has yet to be arrested and is considered a fugitive.
Criminal Complaint 13-MJ-1433 charges Daniel Arrieta, 37, of Anthony, N.M., with conspiracy to distribute heroin. If convicted, Arrieta faces a maximum penalty of 20 years in prison. Arrieta has yet to be arrested and is considered a fugitive.
Criminal Complaint 13-MJ-1434 charges Noe Perez-Rodriguez, 46, of Berino, N.M., and Larry Valles, Sr., 50, of Los Lunas, N.M., with conspiracy to distribute methamphetamine, distribution of methamphetamine and distribution of cocaine. If convicted, Perez-Rodriguez and Valles each face a mandatory minimum five years and a maximum of 40 years in prison. Perez-Rodriguez also is charged with illegally entering into the United States after having been previously deported. If convicted of the immigration charge, Perez-Rodriguez faces a maximum of 20 years in prison. Perez-Rodriguez and Valles were arrested today.
Criminal Complaint 13-MJ-1435 charges Michael Vega, 25, and Raul Martinez, 25, both of Anthony, N.M., with conspiracy to distribute cocaine and distribution of cocaine. If convicted, Vega and Martinez each face a maximum penalty of 20 years in prison. Martinez was arrested today. Vega is in state custody on other charges and will be transferred to federal custody to face the charges in the complaint.
Criminal Complaint 13-MJ-1436 charges John Eric Sapien, 25, of Anthony, N.M., with distribution of cocaine. If convicted, Sapien faces a maximum penalty of 20 years in prison. Sapien is in state custody on other charges and will be transferred to federal custody to face the charges in the complaint.
Criminal Complaint 13-MJ-1437 charges Gerardo Garcia, 63, of Vado, N.M., and Jose Salcido, 51, of Anthony, N.M., with conspiracy to distribute cocaine and distribution of cocaine. If convicted, Garcia and Salcido each face a maximum penalty of 20 years in prison. Salcido was arrested today. Garcia has yet to be arrested and is considered a fugitive.
Criminal Complaint 13-MJ-1438 charges Abel Romero, 29, of Anthony, N.M., Benjamin Ochoa, 30, of Las Cruces, N.M., Victor Alvarez, 43, of Las Cruces, N.M., Victor Cano, 30, of Anthony, N.M., and Jaime Cano, 29, of Canutillo, Texas, with conspiracy to distribute cocaine and marijuana and distribution of cocaine and marijuana. If convicted, each of the five defendants faces a mandatory minimum five years and a maximum of 40 years in prison. The complaint also charges Romero with being a felon in possession of a firearm. If convicted of the firearm charge, Romero faces a maximum penalty of ten years in prison. Romero, Ochoa and Victor and Jaime Cano were arrested today. Alvarez has yet to be arrested and is considered a fugitive.
Criminal Complaint 13-MJ-1439 charges Eloy Rios-Montoya, 39, and Joey Martinez, 28, both of Anthony, Texas, and Sergio Cesar Reyes, 37, of Anthony, N.M., with conspiracy to distribute cocaine and distribution of cocaine. If convicted, Rios-Montoya, Reyes and Martinez each face a maximum penalty of 20 years in prison. Rios-Montoya, Martinez and Reyes were arrested today.
Criminal Complaint 13-MJ-1440 charges Javier Castruita, 45, Gloria Portillo Valdivia, 50, and Carlos Alberto Valdivia, 55, all of Anthony, N.M., with conspiracy to distribute cocaine and distribution of cocaine. If convicted, Castruita, Portillo Valdivia and Valdivia each face a maximum penalty of 20 years in prison. Castruita, Portillo Valdivia and Valdivia were arrested today.
Criminal Complaint 13-MJ-1441 charges Jesus M. Baeza-Lascano, 44, and Martin Nevarez, 49, both of Anthony, N.M., with conspiracy to distribute cocaine and distribution of cocaine. If convicted, Baeza-Lascano and Nevarez each face a maximum penalty of 20 years in prison. Baeza-Lascano was arrested today. Nevarez has yet to be arrested and is considered a fugitive.
Criminal Complaint 13-MJ-1559 charges Roberto Andres Urquidi, 33, of Canutillo, Texas, and Freddy Sanchez-Ramirez, 55 of Anthony, N.M., with conspiracy to distribute heroin. If convicted, Urquidi and Sanchez-Ramirez each face a maximum penalty of 20 years in prison. Urquidi and Sanchez-Ramirez were arrested today.
Charges in criminal complaints are merely accusations. All criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.Tokumba Miller Sentenced for Drug TraffickingRead the Press Release
TOKUMBA MILLER, age 35, a resident of Metairie, Louisiana, was sentenced by U. S. District Judge Helen G. Berrigan today to 120 months imprisonment for being part of a conspiracy to traffic in heroin, possession with intent to distribute heroin, and of possessing a firearm as a convicted felon, announced U. S Attorney Dana J. Boente. In addition to the term of imprisonment, Judge Berrigan imposed eight years of supervised release following the term of imprisonment. During the eight-year term the defendant will be under federal supervision and risks an additional term of imprisonment should he violate any terms of his supervised release.
On January 30, 2013, MILLER previously entered a guilty plea before Judge Berrigan admitting to making several sales of heroin to confidential sources assisting law enforcement, as well as making several deliveries of heroin to various individuals. Law enforcement later arrested MILLER in New Orleans after he appeared to conduct another heroin sale. They then searched his apartment in Metairie and found a small amount of heroin, cutting agents, drug paraphernalia, a machine press, ammunition, and a loaded .32 caliber handgun. Based on MILLER’s multiple prior felony convictions, which included convictions for drug offenses in state court, he was prohibited by Federal Law from possessing a firearm.
This case was investigated by Special Agents of the Federal Bureau of Investigation, New Orleans Police Department, and Jefferson Parish Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Kevin G. Boitmann.
Tampa Business Executives Indicted for Promoting Fraudulent Tax SchemeRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces the unsealing of an indictment charging Duane Crithfield (65) and Stephen Donaldson, Sr. (67) with one count of conspiracy to defraud the United States. If convicted, each faces a maximum penalty of five years in federal prison and a $250,000 fine.
According to the indictment, from 2001 and up to at least March 2008, Crithfield, Donaldson and others, through Foster & Dunhill, Offshore Trust Service, Fidelity Insurance Company ("FIC"), and Citadel Insurance Company ("CIC") promoted, marketed, and implemented a fraudulent offshore tax strategy known as the Business Protection Plan ("BPP"). The BPP strategy enabled Crithfield and Donaldson’s affluent clients to claim business expense deductions based on sham "insurance premium" payments made to offshore entities FIC and CIC, in amounts intended to substantially reduce the clients' taxable income for a particular year. The so-called insurance premiums were not based on actual business risks, but rather on the client's interest in reducing business income for tax purposes. After obtaining the benefit of a tax deduction on the client's corporate income tax return, the client would later receive approximately 83-85% of the premium back.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service Criminal Investigation. It will be prosecuted by Assistant United States Attorneys Jay G. Trezevant and Matthew J. Mueller.
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