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Monday 25 March 2013
Two from Kyle Plead Guilty to Unlawful Possession of IntoxicantsRead the Press Release
United States Attorney Brendan V. Johnson announced that Thomas Dean Lays Hard, age 49, and Caroline Janis, age 25, both of Kyle, South Dakota appeared before U.S. Magistrate Judge Veronica L. Duffy on March 19, 2013 and pled guilty to Intoxicants Possessed Unlawfully in Indian Country. The maximum penalty upon conviction for Lays Hard is 5 years' imprisonment and a $250,000 fine. The maximum penalty upon conviction for Janis is 1 year of imprisonment and a $100,000 fine.
The charge relates to Lays Hard and Janis unlawfully possessing vodka on the Pine Ridge Indian Reservation on November 7, 2012. The investigation was conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. The case is being prosecuted by Assistant U.S. Attorney Wayne Venhuizen.
Presentence investigations were ordered and sentencing dates will be set. Both Lays Hard and Janis were released on bond pending sentencing.
Two Columbus Men Sentenced to A Total of 27 Years in Federal Prison on Crack and Heroin Conspiracy ChargesRead the Press Release
HUNTINGTON, W.Va. – U.S. Attorney Booth Goodwin announced that two Columbus men were sentenced on March 25 to a total of 27 years in federal prison in connection with an illegal drug conspiracy in Huntington, West Virginia. Kevin Luthor Robinson, also known as “KK” 44, was sentenced to 11 years and three months in prison. Jermaine D. Dickerson, also known as “Chris” and “G,” 36, was sentenced to 15 years and nine months in federal prison. Both defendants previously pleaded guilty in December 2012 to conspiracy to distribute heroin and 28 grams or more of crack cocaine.
Robinson and Dickerson admitted that during the fall of 2010 until July 2011, they conspired together to transport and distribute heroin and 28 grams or more of crack in and around the Huntington area. Both defendants admitted that they arranged frequent trips to Columbus to purchase heroin and cocaine. The illegal drugs were then transported to Huntington by the defendants. Robinson and Dickerson also admitted that during the scheme, they converted powder cocaine into crack cocaine for distribution. The defendants admitted that they worked with multiple co-conspirators and utilized several Huntington residences to store, prepare and package illegal drugs during the conspiracy.
Robinson and Dickerson further admitted that they directed co-conspirators to set up and complete numerous illegal drug buys.
The cases were investigated by the DEA, the Huntington Police Department and the High Intensity Drug Trafficking Area Task Force. Assistant United States Attorney Joseph F. Adams handled the prosecutions. The sentences were imposed by Chief United States District Judge Robert C. Chambers.
Two Brothers from Bricktown Gang Each Sentenced to 87 MonthsRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York, announces that brothers MIGUEL RUSSO, age 24, and MIQUAN RUSSO, age 23, both of Syracuse, were sentenced today in U.S. District Court in Syracuse to 87 months imprisonment each for their roles in conspiring to engage in a pattern of racketeering activity through their membership in the Bricktown Gang, a violent street gang operating on the streets of Syracuse.
As part of their pleas, both RUSSO’s admitted that the Bricktown Gang operated within the City of Syracuse from at least 2000 through the present and that members of the Bricktown Gang: (1) maintain a specific geographic territory within the City of Syracuse in which only gang members can sell crack cocaine, cocaine and marijuana; (2) protect that exclusive crack distribution territory with violence if necessary; (3) obtain drugs from suppliers in New York City and elsewhere; (4) project a very violent attitude and respond to violence with violence in order to preserve their stature in the gang community; (5) on occasion use hand signs, wear blue colored bandanas and have tattoos, all of which are intended to signify their gang membership; (6) use criteria such as willingness to use violence, ability to sell drugs, and familial connections to determine membership; and (7) routinely carry and use firearms in connection with their gang activity.
This prosecution resulted from a long-term investigation conducted by the Syracuse Gang Violence Task Force, which is comprised of agents and detectives from the following agencies: United States Department of Justice, Bureau of Alcohol, Tobacco, and Firearms (Syracuse Office), the Syracuse Police Department, the Onondaga County Sheriff's Department, the New York State Troopers, and the United States Marshals Service. The Onondaga County District Attorney’s Office also assisted in the investigation.
Further questions or inquiries may be directed to Assistant U.S. Attorney, John M. Katko, who is handling the case, at (315) 448-0672.
Staten Island Man Convicted of Making False Statements in A Matter Involving International TerrorismRead the Press Release
Abdel Hameed Shehadeh, a United States citizen and former resident of Staten Island, was convicted today of making false statements in a matter involving international terrorism. The jury’s verdict followed a week-long trial in United States District Court in Brooklyn, New York before the Honorable Eric N. Vitaliano. The conviction was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York.
According to court filings and the evidence introduced at trial, in early 2008 Shehadeh devised a plan to travel to the Federally Administered Tribal Areas of Pakistan in order join al Qaeda or the Taliban. In furtherance of his plan, on June 13, 2008, Shehadeh flew on a one-way airline ticket from John F. Kennedy International Airport to Islamabad, Pakistan. After Pakistani officials denied him entry, Shehadeh told investigators from the FBI’s Joint Terrorism Task Force (“JTTF”) that he had traveled to Pakistan to visit a university. However, the true purpose of Shehadeh’s trip was to wage violent jihad against United States military forces.
Several weeks after Shehadeh was denied entry to Pakistan, he attempted to enlist in the United States Army at the Times Square recruiting station in Manhattan. Shehadeh’s application was denied when it was discovered that he had concealed his trip to Pakistan on his application. Though Shehadeh claimed that he had tried to enlist for career opportunities and benefits, his true motive was to deploy overseas, where he would commit treason by defecting and fighting alongside insurgent forces. Over the next several months, in subsequent interviews with members of the JTTF, Shehadah continued to lie about the true purpose of his travel. However, in 2010 Shehadah confessed to FBI agents that he had sought to join a jihadist fighting group. Shehadah was arrested in Honolulu, Hawaii in October 2010.
“Time and again, Shehadeh sought to travel overseas to wage violent jihad against U.S. military forces, going so far as to attempt to infiltrate the U.S. Army,” stated United States Attorney Lynch. “When confronted with his attempts to join a terrorist group and kill American soldiers, he repeatedly lied about his actions and his intentions. Due to the tireless work of our law enforcement partners, the defendant did not succeed in his jihadist goals. We will continue to be vigilant in bringing those who seek to commit terrorist acts to justice.” Ms. Lynch thanked the FBI’s New York and Honolulu Field Offices, as well as the New York City Police Department, for their substantial contributions to the multi-year investigation that led to the defendant’s arrest and conviction.
When sentenced, Shehadeh faces a maximum sentence of twenty-one years’ imprisonment.
The government’s case was prosecuted by Assistant United States Attorneys Alexander Solomon, David Sarratt and James Loonam.
The Defendant:
Abdel Hameed Shehadeh
Age: 23Sparta Felon Pleads Guilty to Illegally Possessing A FirearmRead the Press Release
Paige R. Davis, from Sparta, Illinois, pled guilty in federal district court today to being a felon in possession of a firearm, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Davis is scheduled for sentencing on July 12, 2013. He faces a maximum penalty of 10 years imprisonment, a $250,000 fine, 3 years supervised release, $100 special assessment fee, and restitution to the victim.
Court documents indicate that in October 2012, Davis knowingly possessed a firearm after he had been convicted of Home Invasion, Aggravated Robbery, and Unlawful Restraint, on or about May 20, 2005, in the Twentieth Judicial Circuit, in Randolph County, Illinois.
The case was investigated by the cooperative efforts of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Sparta Police Department. The case is assigned to Assistant United States Attorney Monica A. Stump.
Smugglers Head to Federal Prison for Raping and Threatening Undocumented AliensRead the Press Release
McALLEN, Texas ‐ Miguel Aceves, 40, of El Salvador, and Valentine Pena-Roman, 41, of Mexico, have been sentenced to significant federal prison time for smuggling undocumented aliens, United States Attorney Kenneth Magidson announced today.
Aceves and Pena harbored undocumented aliens in Alamo from Oct. 1 to Oct. 4, 2012. While at the stash house, multiple undocumented aliens were threatened by Aceves and Pena that they would be hurt or killed if they did not pay more money. During this time, Aceves sexually assaulted one undocumented alien. Further investigation revealed that in September 2012, he had also sexually assaulted another female undocumented alien in San Juan, Texas.
Today, U.S. District Judge Randy Crane sentenced Aceves and Pena to 96 and 70 months confinement, respectively. Upon imposing the sentence, the court noted that Aceves was calculated in the ways in which the females were separated from the other undocumented aliens. Judge Crane enhanced Aceves’ sentence based on the repeated sexual assaults of the victims.
The investigation leading to the charges against Aceves and Pena was conducted by Homeland Security Investigations, Border Patrol, Alamo Police Department and the Hidalgo County Sheriff’s Office.
Assistant United States Attorneys Kristen Rees and Kimberly Ann Leo prosecuted the case.
Smuggler Gets Enhanced Sentence Due to Rape of Undocumented AlienRead the Press Release
McALLEN, Texas ‐ Juan David Alviso-Gonzalez, 18, of Mexico, has been sentenced to jail time for smuggling undocumented aliens, United States Attorney Kenneth Magidson announced today.
From Oct. 21 to Oct. 22, 2012, Alviso-Gonzalez harbored undocumented aliens in Mission, and he and others attempted to extort more smuggling fees from the undocumented aliens. During this time, Alviso sexually assaulted one undocumented alien and attempted to sexually assault another. On Oct. 22, the undocumented aliens called 911 for help, after which time law enforcement arrived and soon arrested Alviso-Gonzalez.
Today, U.S. District Judge Randy Crane sentenced Alviso to 60 months imprisonment to be followed by three years of supervised release. Upon imposing the sentence, the court noted that the defendant preyed upon the vulnerability of the victim being that she was here in the United States illegally. The sentence against Alviso-Gonzalez was enhanced because he raped the victim multiple times.
The investigation leading to the charges against Alviso was conducted by Homeland Security Investigations, Border Patrol and the Hidalgo County Sheriff’s Office.
Assistant United States Attorneys Kristen Rees and Kimberly Ann Leo prosecuted the case.
Sibley Man to Federal Prison for Methamphetamine ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced March 14, 2013, to more than six years in federal prison.
Esmelin Belloso-Valle, 49, from Sibley, Iowa, received the prison term after a September 20, 2012, guilty plea to conspiracy to distribute methamphetamine and distribution of methamphetamine.
At the guilty plea, Belloso-Valle admitted his involvement in a conspiracy from 2011 through April 2012 that distributed more than 150 grams of actual (pure) methamphetamine. On one occasion in February 2012, once in March 2012, and once in May 2012, Belloso-Valle along with others involved in the conspiracy distributed more than 200 grams of actual (pure) methamphetamine during controlled drug transactions with law enforcement. One of these distributions occurred within 1000 feet of Dale Street Park in Sioux City, Iowa. During the execution of a search warrant, law enforcement officers located over 208 grams of actual (pure) methamphetamine that was for future distribution as part of the conspiracy.
Belloso-Valle was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Belloso-Valle was sentenced to 81 months’ imprisonment. A special assessment of $200 was imposed. He must also serve an 8-year term of supervised release after the prison term. There is no parole in the federal system.
Belloso-Valle is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-4060.Shellsburg Tax Return Preparer Charged with Preparing ANd Filing Fraudulent Tax ReturnsRead the Press Release
Keith Rath, 52, from Shellsburg, Iowa, has been charged with eight counts of preparing and presenting fraudulent tax returns. The charges are contained in an Indictment unsealed on March 22, 2013, in United States District Court in Cedar Rapids.
The Indictment alleges that, between about January 2008 and March 2010, Rath prepared and filed eight fraudulent tax returns.
If convicted on all charges, Rath faces a possible maximum sentence of 24 years’ imprisonment, an $800,000 fine, $800 in special assessments, and eight years of supervised release following any imprisonment.
Rath appeared on March 22, 2013, in federal court in Cedar Rapids and was released on conditions of supervision. Rath’s next appearance for trial is set for May 20, 2013.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Internal Revenue Service.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-0012-LRR.
Shelby County Juvenile Court Psychiatric Counselor Pleads Guilty to $500,000 Health Care Fraud SchemeRead the Press Release
Memphis, TN – Mechell D. Toles, 44, of Collierville, TN, pleaded guilty this morning to a one count Information charging her with health care fraud, announced United States Attorney for the Western District of Tennessee, Edward L. Stanton III. Toles, a licensed professional counselor who formerly operated offices in Memphis and Collierville, will be sentenced on July 1, 2013 before Chief United States District Judge Jon Phipps McCalla.
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According to the Information and to statements made at the guilty plea hearing this morning, Ms. Toles – who has an undergraduate degree from Purdue University, a masters degree from the University of Mississippi, and a Ph.D. from Walden University – received referrals from the Shelby County Juvenile Court, which was the primary source of her counseling clientele. Hundreds of Ms. Toles’ patients were enrolled in TennCare, Tennessee’s Medicaid program. In western Tennessee, TennCare operates through two managed care organizations: Blue Care, which is associated with Blue Cross Blue Shield; and AmeriChoice, which is associated with United Health Care.
The investigation began after AmeriChoice audited Ms. Toles based on her high volume of counseling services and, upon finding incomplete documentation in her files, provided her with training on proper documentation and billing. The TennCare Office of Integrity referred the audit and inquiry into Ms. Toles’ billing practices to the Tennessee Bureau of Investigation on suspicion that she had engaged in health care fraud.
Investigators obtained billing information from the managed care organizations, reviewed correspondence and documentation from Juvenile Court, interviewed patients, surveilled Ms. Toles, and obtained a search warrant. The investigation revealed numerous occasions for which Ms. Toles billed for more than 24 hours of services in a single day. It also revealed instances in which Ms. Toles billed for counseling sessions on dates before patients had been referred to her and on dozens of dates after she had discharged patients. Ms. Toles’ files were largely devoid of any documentation of services provided, and patient records showed blank sheet after blank sheet for the purported dates of service. Based on billings for which there was no documentation of any services, investigators estimate approximately $500,000 to $600,000 was billed by Ms. Toles and paid by TennCare for which no valid services were actually rendered.
After her offices were searched, Ms. Toles was interviewed and admitted that her patient files were “horrible” and that only one or two were correct. She also admitted that she billed for services on dates when no services were provided. She claimed she was not sure how much money she had obtained, that she wanted to pay it back, that she did not have any particular need for the money – which had been spent – and that she knew at the time it was wrong but that it was just easy to do.
“While serving in a position of trust and being paid to help children in need, Ms. Toles instead helped herself to more than a half-million dollars of taxpayer monies,” said U.S. Attorney Stanton. “By doing so, she brazenly diverted resources from deserving clients and unscrupulously manipulated our nation’s health-care benefits system for her own benefit.”
This investigation is being conducted by the Tennessee Bureau of Investigation. Assistant U.S. Attorney John Fabian represents the government.Self-Proclaimed “President” of Sovereign Citizen Nation Convicted in Alabama of Federal Tax CrimesRead the Press Release
A federal jury in Montgomery, Ala., found James Timothy Turner, also known as Tim Turner, guilty late Friday of conspiracy to defraud the United States, attempting to pay taxes with fictitious financial instruments, attempting to obstruct and impede the Internal Revenue Service (IRS), failing to file a 2009 federal income tax return and falsely testifying under oath in a bankruptcy proceeding, the Justice Department, the IRS and the FBI announced today.
Based on the evidence introduced at trial and court filings, Turner, the self-proclaimed “president” of the so-called sovereign citizen group “Republic for the United States of America” (RuSA), traveled the country in 2008 and 2009 conducting seminars teaching attendees how to defraud the IRS by preparing and submitting fictitious “bonds” to the United States government in payment of federal taxes. Although the evidence at trial revealed the bonds are fictitious and worthless, witnesses testified that Turner used special paper, financial terminology and elaborate borders in an effort to make them look “real” and more likely to succeed in defrauding the recipient. Turner was convicted of sending a $300 million “bond” in his own name and of aiding and abetting others in sending fifteen other “bonds” to the Treasury Department to pay taxes and other debts.
The evidence at trial also established that Turner taught people how to file retaliatory liens against government officials who interfered with the processing of fictitious “bonds.” Turner filed a purported $17.6 billion maritime lien in Montgomery County, Ala., Probate Court against another individual. Finally, evidence presented at trial demonstrated that the FBI began an investigation after Turner and three other individuals sent demands to all 50 governors in the United States in March 2010 ordering each governor to resign within three days or be “removed.”
“The jury’s verdict in this case sends a message that defrauding the government and others through the use of bogus financial documents will not be tolerated,” said Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally. “Disagreement with the law is no excuse for the real harm caused by these self-interested tax defiers.”
“These sovereign citizen groups use these retaliatory tax liens and fraudulent tax schemes as weapons against the United States and its citizens,” stated Acting U.S. Attorney Sandra J. Stewart. “It is only the hard work of law enforcement that can stop these criminals from using these financial weapons. I would like to thank the law enforcement officers who worked vigilantly on this case to bring this criminal to justice.”
“Those who create elaborate schemes and fraudulent tax elimination tactics run a high risk of prosecution,” stated Richard Weber, Chief, IRS Criminal Investigation. “Mr. Turner’s attempts to thwart the IRS, as well as the assistance and training he provided to others, was not tax planning, it was criminal activity. IRS-Criminal Investigation is committed to vigorously pursuing those who promote illegal financial transactions designed to evade the payment of taxes. For those who would consider similar behavior, let this case be a strong warning that there is no secret formula for evading the payment of taxes and no one is above the law.”
Turner remains in federal custody pending sentencing. Turner faces a potential maximum prison term of 164 years, a maximum potential fine of $2,350,000 and mandatory restitution.
“The prosecution of individuals who intentionally impede the IRS by submitting fictitious and frivolous documents, in an attempt to avoid paying federal taxes, is a vital element in maintaining public confidence in our tax system,” stated Veronica Hyman-Pillot, Special Agent in Charge of IRS Criminal Investigation. “Hopefully the verdict will send a message to other individuals like Turner, that this conduct will not be tolerated.”
“This joint investigation exemplifies the government’s commitment to investigate and prosecute those, who through tax schemes, attempt to cheat and steal from the government,” stated Stephen Richardson, Special Agent in Charge of the FBI, Mobile Division.
This case was investigated by special agents of the FBI and IRS-Criminal Investigation, and is being prosecuted by Tax Division Trial Attorney Justin Gelfand and Middle District of Alabama Assistant U.S. Attorney Gray Borden.
Self-Proclaimed “President” of Sovereign Citizen Nation Convicted of Federal Tax CrimesRead the Press Release
Montgomery, Alabama - After a five-day trial, a federal jury in Montgomery, Ala., found James Timothy Turner, 57, also known as Tim Turner, of Skipperville, Alabama guilty of conspiracy to defraud the United States, attempting to pay taxes with fictitious financial instruments, attempting to obstruct and impede the Internal Revenue Service (IRS), failing to file a 2009 federal income tax return, and falsely testifying under oath in a bankruptcy proceeding, announced Sandra J. Stewart, Acting U.S. Attorney for the Middle District of Alabama.
The FBI began an investigation after Turner and three other individuals sent demands to all fifty governors in the United States ordering each governor to resign within three days or be “removed.” The FBI’s investigation revealed that Turner was the self-proclaimed “President” of the so-called sovereign citizen group “Republic for the united States of America” (“RuSA”). As “President,” Turner traveled the country in 2008 and 2009 teaching others how to defraud the IRS by preparing and submitting fictitious “bonds” to the United States government in payment of federal taxes. Witnesses at trial testified that Turner used special paper, financial terminology, and elaborate borders in an effort to make the fake bonds look “real” and thus, more likely to succeed in defrauding the IRS.
Turner was convicted of sending a $300 million “bond” in his own name and of aiding and abetting others in sending fifteen other “bonds” to the Treasury Department to pay taxes and other debts. The evidence at trial also established that Turner taught people how to file retaliatory liens against government officials who interfered with the processing of fictitious “bonds.” Turner himself actually filed a purported $17.6 billion maritime lien in Montgomery County, Alabama, Probate Court against another individual.
“The jury’s verdict in this case sends a message that defrauding the government and others through the use of bogus financial documents will not be tolerated,” said Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally. “Disagreement with the law is no excuse for the real harm caused by these self-interested tax defiers.”
“These sovereign citizen groups use these retaliatory tax liens and fraudulent tax schemes as weapons against the United States and its citizens, stated Acting U.S. Attorney Sandra J. Stewart. It is only the hard work of law enforcement that can stop these criminals from using these financial weapons. I would like to thank the law enforcement officers who worked vigilantly on this case to bring this criminal to justice.”
"The prosecution of individuals who intentionally impede the IRS by submitting fictitious and frivolous documents, in an attempt to avoid paying federal taxes, is a vital element in maintaining public confidence in our tax system,” stated Veronica Hyman-Pillot, Special Agent in Charge of IRS Criminal Investigation. “Hopefully the verdict today will send a message to other individuals like Turner, that this conduct will not be tolerated.”
“This joint investigation exemplifies the government’s commitment to investigate and prosecute those, who through tax schemes, attempt to cheat and steal from the government,” stated Stephen Richardson, Special Agent in Charge of the Federal Bureau of Investigation, Mobile Division.
Turner remains in federal custody pending sentencing. Turner faces a potential maximum prison term of 164 years, a maximum potential fine of $2,350,000, and mandatory restitution.
This case was investigated by special agents of the FBI and IRS – Criminal Investigation, and is being prosecuted by Tax Division Trial Attorney Justin Gelfand and Middle District of Alabama Assistant U.S. Attorney Gray Borden.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Seattle Man Sentenced to 18 Years in Prison for Plot to Attack Seattle Military Processing CenterRead the Press Release
SEATTLE – A Seattle man was sentenced today to 18 years in prison in connection with the June 2011 plot to attack a military installation in Seattle, U.S. Attorney Jenny A. Durkan announced. Abu Khalid Abdul-Latif, aka Joseph Anthony Davis, 35, pleaded guilty in December 2012 to conspiracy to murder officers and agents of the United States and conspiracy to use weapons of mass destruction. Abdul-Latif planned to use grenades and machine guns to attack recruits at the Military Entrance Processing Center in a federal office complex in south Seattle. U.S. District Judge James L. Robart imposed ten years of supervised release saying this plot “could have done incredible harm if it had gone forward.”
“This defendant planned to attack a military center when there would be the largest possible gathering of new recruits and their families. He targeted young men and women solely because they wanted to serve our country. His goal: to inspire others with a message of hate,” said U.S. Attorney Jenny A. Durkan. “His plot was disrupted by vigilance in our community and good work by law enforcement. I commend the Seattle Police, and the FBI for their work, and thank the leaders of our Muslim communities who work tirelessly to ensure the acts of extremists are not used to condemn their faith.”
“Countless innocent people targeted by Mr. Abdul-Latif are safe thanks to the vigilance of Seattle’s Muslim community and the dedicated work of law enforcement partners,” said Laura M. Laughlin, Special Agent-in-Charge of the FBI Seattle office. “The plot may have been thwarted, but its mere existence and the extremist thinking behind it are despicable. I hope that Mr. Abdul-Latif uses his years in prison to reflect on what it means to be a true member of an American community, built on respect for all.”
“I am pleased with the outcome of this very important joint agency investigation. With support from the Muslim community and the diligent work of Seattle Police Detectives and our federal partners, a dangerous man will spend a long time behind bars and our community will be safer for it,” said Seattle Police Chief John Diaz.
The other defendant in the case, Walli Mujahidh, 33, of Los Angeles, is scheduled for sentencing on April 8, 2013.
Law enforcement first became aware of the plot when a citizen alerted them that he/she had been approached by Abdul-Latif about participating in the attack and supplying firearms to the conspirators. The person then agreed to work with law enforcement, which began monitoring Abdul-Latif and Mujahidh. Beginning in early June 2011, the conspirators were captured on audio and videotape discussing a violent assault on the Military Entrance Processing Station (MEPS). The MEPS is where each branch of the military screens and processes enlistees. In addition to housing many civilian and military employees, the building houses a federal daycare center.
In his plea agreement, Abdul-Latif admits that he agreed to carry out the planned attack and that he made plans for Mujahidh to travel to Seattle from Los Angeles to participate in the attack. Mujahidh arrived in Seattle on June 21, 2011. On that same day, during a meeting between Abdul-Latif, Mujahidh, and a person who was working with law enforcement, Abdul-Latif outlined the plan of attacking the MEPS with machine guns and grenades, and took steps to purchase weapons and further the plot. In accordance with the defendants’ plan, the next day the person working with police brought three machine guns to a meeting with Abdul-Latif and Mujahidh. The men were arrested after they took possession of the weapons, which had been rendered inoperable by law enforcement.
Prosecutors noted that a lengthy term was necessary to protect the public, and urged future monitoring by Federal Probation. “Abdul-Latif undertook his plot in furtherance of his long-standing and deeply felt radical beliefs. To this day, he has not disavowed the radical ideology that inspired his attack plot, nor has he expressed any meaningful remorse for his conduct,” prosecutors wrote in their sentencing memo.
The case was prosecuted by the U.S. Attorney’s Office for the Western District of Washington, with assistance from the Counterterrorism Section of the Justice Department’s National Security Division. The investigation is being conducted by the FBI’s Joint Terrorism Task Force, which has investigators from federal, state and local law enforcement, and the Seattle Police Department. The Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) contributed significant expertise to this investigation.Rochester Man convicted of marijuana conspiracyRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Joseph Schmidt, 30, of Rochester, N.Y., pleaded guilty to conspiracy to distribute marijuana before U.S. District Judge Charles J. Siragusa. The charge carries a maximum sentence of 40 years in prison, a fine of $5,000,000, or both.
Assistant U.S. Attorney Douglas E. Gregory, who is handling the case, stated that between January 2008 and July 2011, Schmidt, along with several other individuals, distributed significant quantities of marijuana which was obtained from various sources, including the Akwesasne Mohawk Indian Reservation in the Northern District of New York. The defendant also maintained sophisticated indoor marijuana grow operations at residences on Crystal Valley Overlook, in Henrietta, New York, and Culver Parkway, in Rochester, both of which were searched by police in July 2011. As part of his plea, Schmidt will forfeit the Henrietta home, as well as cash and 10 firearms.The defendant was arrested on February 5, 2013 along with six other defendants. He is the first to be convicted.
The plea is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, along with officers and investigators with the Rochester Police Department, under the direction of Chief James Sheppard, along with members of the Greater Rochester Area Narcotics Enforcement Team (GRANET), under the direction of Lieutenant Joseph Morabito.
Sentencing is scheduled for July 15, 2013 at 11:00 a.m. before Judge Siragusa.Puerto Rico Man Faces Life in Prison for Mass Shooting in 2009Read the Press Release
Alexis Candelario-Santana, 41, faces life in prison following his conviction of murdering eight people and an unborn child and attempting to murder 19 others during a mass shooting at a Puerto Rico pub in 2009, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez.
On March 8, 2013, Candelari-Santana was convicted of 28 counts of violent crime in aid of racketeering activity, one count of racketeering conspiracy, nine counts of using a firearm in relation to a crime of violence, one count of conspiracy to possess with intent to distribute a controlled substance and one count of possession of a firearm with a prior conviction. These offenses occurred on Oct. 17, 2009, in what became known as the “La Tombola Massacre.”
The counts of conviction on capital murder charges necessitated a separate penalty phase of the trial. That phase began on Monday, March 15, 2003. On Saturday, March 23, 2013, the jury announced it was unable to reach a unanimous sentencing verdict. As a result, a sentence of life in prison will be imposed. There is no parole in the federal system.
According to the evidence presented at trial, from approximately 1993 through 2003, Candelario-Santana was the leader of the drug trafficking organization that operated principally in Sabana Seca, Toa Baja, Puerto Rico. The organization purchased its drugs in bulk, processed and packaged the drugs and sold them at Sabana Seca through numerous sellers, runners and enforcers under Candelario-Santana’s control. The organization sold crack, cocaine, heroin and marijuana, and members of the organization routinely possessed firearms in order to protect the drug points. In addition, the evidence introduced at trial established that, between 1995 and 2001, Mr. Candelario-Santana either personally killed, or ordered others to kill, 13 individuals whom he viewed as threats to his drug trafficking organization or as being disloyal members of his drug trafficking organization.
In approximately 2002, Candelario-Santana was arrested and charged in the Commonwealth of Puerto Rico with numerous murders. Sometime after Candelario-Santana’s arrest, co-defendant Carmelo Rondón-Feliciano took charge of the organization. Candelario-Santana ran the drug trafficking organization from prison until approximately 2006, when he was marginalized by co-conspirator Wilfredo Semprit-Santana and Rondón-Feliciano. According to evidence presented at trial, Candelario-Santana was infuriated at being removed from power within the drug trafficking organization.
On Sept. 25, 2006, Rondón-Feliciano was arrested and charged in the District of Puerto Rico with federal drug trafficking crimes. These charges stemmed, in part, from Rondón-Feliciano’s distribution of narcotics in Sabana Seca. After Rondón-Feliciano’s arrest, co-conspirator Semprit-Santana took charge of the organization.
In February 2009, Candelario-Santana was released from prison.On Oct. 17, 2009, Semprit-Santana held the grand opening of a pub he rented called La Tómbola, located in Toa Baja, Puerto Rico. The event was heavily attended, with people congregating inside and outside the establishment. At approximately 11:50 p.m., Candelario-Santana, co-defendant David Oquendo-Rivas, and others, drove to La Tómbola. When they arrived, they immediately opened fire on the patrons located outside. Candelario-Santana and Oquendo-Rivas entered La Tómbola and opened fire on the people inside. Nine people and an 8-month unborn child were killed as a result of the gunfire, and 19 other victims were shot and injured. The individuals killed included Candelario-Santana’s godson, Rondón-Feliciano’s stepson and Candelario-Santana’s cousin. The evidence introduced at trial demonstrated that 335 expended shell-casings were recovered from the La Tombola crime scene. The ballistics evidence established that eight .9 mm semi-automatic pistols, three 40 caliber semi-automatic pistols, two 45 caliber semi-automatic pistols, three AK-47-type assault rifles and one AR-15-type assault rifle, were used at the La Tombola crime scene.
Candelario Santana will be formally sentenced on June 21, 2013.
The case was investigated by FBI and the Puerto Rico Police Department, with the collaboration of U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Postal Inspection Service; Instituto de Ciencias Forenses; and the Puerto Rico Department of Justice. The case is being prosecuted by First Assistant U.S. Attorney María Dominguez-Victoriano and Assistant U.S. Attorney Marcela Mateo of the U.S. Attorney’s Office for the District of Puerto Rico, and Trial Attorney Bruce R. Hegyi of the Criminal Division’s Capital Case Unit.
Puerto Rico Man Faces Life in Prison for Mass Shooting in 2009Read the Press Release
WASHINGTON –Alexis Candelario-Santana, 41, faces life in prison following his conviction of murdering eight people and an unborn child and attempting to murder 19 others during a mass shooting at a Puerto Rico pub in 2009, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez.
On March 8, 2013, Candelari-Santana was convicted of 28 counts of violent crime in aid of racketeering activity, one count of racketeering conspiracy, nine counts of using a firearm in relation to a crime of violence, one count of conspiracy to possess with intent to distribute a controlled substance and one count of possession of a firearm with a prior conviction. These offenses occurred on Oct. 17, 2009, in what became known as the “La Tombola Massacre.”
The counts of conviction on capital murder charges necessitated a separate penalty phase of the trial. That phase began on Monday, March 15, 2003. On Saturday, March 23, 2013, the jury announced it was unable to reach a unanimous sentencing verdict. As a result, a sentence of life in prison will be imposed. There is no parole in the federal system.
ccording to the evidence presented at trial, from approximately 1993 through 2003, Candelario-Santana was the leader of the drug trafficking organization that operated principally in Sabana Seca, Toa Baja, Puerto Rico. The organization purchased its drugs in bulk, processed and packaged the drugs and sold them at Sabana Seca through numerous sellers, runners and enforcers under Candelario-Santana’s control. The organization sold crack, cocaine, heroin and marijuana, and members of the organization routinely possessed firearms in order to protect the drug points. In addition, the evidence introduced at trial established that, between 1995 and 2001, Mr. Candelario-Santana either personally killed, or ordered others to kill, 13 individuals whom he viewed as threats to his drug trafficking organization or as being disloyal members of his drug trafficking organization.
In approximately 2002, Candelario-Santana was arrested and charged in the Commonwealth of Puerto Rico with numerous murders. Sometime after Candelario-Santana’s arrest, co-defendant Carmelo Rondón-Feliciano took charge of the organization. Candelario-Santana ran the drug trafficking organization from prison until approximately 2006, when he was marginalized by co-conspirator Wilfredo Semprit-Santana and Rondón-Feliciano. According to evidence presented at trial, Candelario-Santana was infuriated at being removed from power within the drug trafficking organization.
On Sept. 25, 2006, Rondón-Feliciano was arrested and charged in the District of Puerto Rico with federal drug trafficking crimes. These charges stemmed, in part, from Rondón-Feliciano’s distribution of narcotics in Sabana Seca. After Rondón-Feliciano’s arrest, co-conspirator Semprit-Santana took charge of the organization.
In February 2009, Candelario-Santana was released from prison.On Oct. 17, 2009, Semprit-Santana held the grand opening of a pub he rented called La Tómbola, located in Toa Baja, Puerto Rico. The event was heavily attended, with people congregating inside and outside the establishment. At approximately 11:50 p.m., Candelario-Santana, co-defendant David Oquendo-Rivas, and others, drove to La Tómbola. When they arrived, they immediately opened fire on the patrons located outside. Candelario-Santana and Oquendo-Rivas entered La Tómbola and opened fire on the people inside. Nine people and an 8-month unborn child were killed as a result of the gunfire, and 19 other victims were shot and injured. The individuals killed included Candelario-Santana’s godson, Rondón-Feliciano’s stepson and Candelario-Santana’s cousin. The evidence introduced at trial demonstrated that 335 expended shell-casings were recovered from the La Tombola crime scene. The ballistics evidence established that eight .9 mm semi-automatic pistols, three 40 caliber semi-automatic pistols, two 45 caliber semi-automatic pistols, three AK-47-type assault rifles and one AR-15-type assault rifle, were used at the La Tombola crime scene.
Candelario Santana will be formally sentenced on June 21, 2013.
The case was investigated by FBI and the Puerto Rico Police Department, with the collaboration of U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Postal Inspection Service; Instituto de Ciencias Forenses; and the Puerto Rico Department of Justice. The case is being prosecuted by First Assistant U.S. Attorney María Dominguez-Victoriano and Assistant U.S. Attorney Marcela Mateo of the U.S. Attorney’s Office for the District of Puerto Rico, and Trial Attorney Bruce R. Hegyi of the Criminal Division’s Capital Case Unit.
Pueblo Bishops Bloods Gang Member Sentenced to 40 Years in Federal Prison for Role in Ambush Killing of Young FatherRead the Press Release
LOS ANGELES - A veteran member of the Pueblo Bishops Bloods street gang was sentenced today to 40 years in federal prison for his role in a racketeering plot that resulted in the death of a young man with no gang affiliation who was executed in front of his 2 year old son.
Anthony Gabourel, also known as "Bandit," 23, of South Los Angeles, was sentenced by United States District Judge S. James Otero for violating the federal Racketeer Influenced and Corrupt Organizations Act (RICO) in relation to the murder of 24 year old Francisco Cornelio.
During the sentencing hearing, Judge Otero stated Gabourel and other Pueblo Bishops executed Cornelio, who was minding his own business" simply because "he was of Mexican descent."
A federal jury determined that Gabourel plotted with other members of the Pueblo Bishops to retaliate against a Latino because members of the rival 38th Street Gang had recently shot and killed a member of the Pueblo Bishops (see: http://www.justice.gov/usao/cac/Pressroom/2012/094.html).
In papers filed in relation to today=s sentencing hearing, prosecutors asserted that Gabourel and another Pueblo Bishops members, armed with shotguns, ambushed the unarmed Cornelio while he was vacuuming his car with his young son. The Pueblo Bishops shot Cornelio once in the back without saying a word. Federal prosecutors argued to Judge Otero that Gabourel was the shooter.
The incident was unsolved prior to a federal racketeering indictment that was unsealed in August 2010. Gabourel was first tried in state court in relation to the Cornelio murder, but a jury acquitted him in August 2011.
Two other men were convicted at trial with Gabourel. Gary White, also known as "Big J Killa" 47, who resided in Los Angeles and Victorville, was sentenced to 14 years in prison. Jermaine Hardiman, also known as "Lil-J Killa," 31, of South Los Angeles, is scheduled to be sentenced by Judge Otero on April 8.
According to evidence presented at trial, the Pueblo Bishops Bloods street gang has been active in and around the Pueblo Del Rio Housing Projects of Los Angeles for decades. This case is the first federal RICO action in this district alleging that a Bloods or Crips street gang was a racketeering enterprise.
As a result of the federal investigation into the Pueblo Bishops Bloods, a total of 45 defendants were charged in federal indictments. Prosecutors have secured convictions of 40 of those defendants. Two defendants are in state custody, and two are fugitives. The forty-fifth defendant, Rondale Young, who is charged with conspiring with Gabourel in the murder of Cornelio, is scheduled to be tried before Judge Otero on November 5, 2013.
One of the 40 defendants convicted in this case B Marquis Edwards, 23, who was known by the moniker "Baby Uzi," and who pleaded guilty in relation to the murder of two people (see: http://www.justice.gov/usao/cac/Pressroom/2012/046.html) - was sentenced in November to 40 years in prison.
The investigation into the Pueblo Bishops Bloods was conducted by the Federal Bureau of Investigation, the Los Angeles Police Department, the United States Department of Housing and Urban Development Office of Inspector General, and the Los Angeles County District Attorney's Office.
Release No. 13-042
Porcupine Woman Pleads Guilty to Controlled Substance ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that Cassie Winters, age 28, of Porcupine, South Dakota appeared before U.S. Magistrate Judge Veronica L. Duffy on March 19, 2013 and pled guilty to conspiracy to distribute a controlled substance. The penalty upon conviction is a minimum of 5 up to 40 years’ imprisonment and/or a $5,000,000 fine.
The charge relates to Winters’ conspiring with others to distribute at least 100 kilograms or more of marijuana in South Dakota between 2008 and 2012. The investigation was conducted by the Federal Bureau of Investigation, Northern Plains Safe Trails Drug Enforcement Task Force, South Dakota Division of Criminal Investigation, and Bureau of Indian Affairs Office of Justice Services. The case is being prosecuted by Assistant U.S. Attorney Ted L. McBride.
The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Pine Ridge Man Pleads Guilty to Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that Derek Black Elk, age 25, of Pine Ridge, South Dakota appeared before U.S. Magistrate Judge Veronica L. Duffy on March 20, 2013 and pled guilty to Sexual Abuse of a Minor. The maximum penalty upon conviction is 15 years' imprisonment and/or a $250,000 fine.
In March 2009 at Pine Ridge, Black Elk engaged in a sexual act with a girl under the age of 16. The investigation was conducted by the Bureau of Indian Affairs Office of Justice Services. The case is being prosecuted by Assistant U.S. Attorney Sarah B. Collins.
A presentence investigation was ordered. The defendant was remanded to the custody of the U.S. Marshal pending sentencing, which has been set for July 15, 2013.
Parmalee Man Sentenced for Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Parmalee, South Dakota man convicted of Assault on a Federal Officer was sentenced on March 18, 2013 by Chief Judge Jeffrey L. Viken, United States District Court. Richard Wolf Guts, a/k/a Gabriel Broken Leg, age 27, was sentenced to time served and 2 years of supervised release and ordered to pay $100 to the Victim Assistance Fund.
In June 2012 at Rapid City, Wolf Guts assaulted a Deputy United States Marshal in the Andrew W. Bogue U.S. Courthouse by spitting on him and physically resisting him. He pled guilty on October 23, 2012.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
One Guilty in Multimillion Dollar Cocaine ConspiracyRead the Press Release
LAREDO, Texas – Jose Gomez-Ramirez, 30, has entered a plea of guilty to conspiracy to possess with the intent to distribute five kilograms or more of cocaine, United States Attorney Kenneth Magidson announced today.
A sealed indictment was returned by a grand jury on Nov. 6, 2012. The indictment alleged a drug trafficking organization transported more than 200 kilograms of cocaine from 2010 to 2011, much of which was intercepted by authorities en route to Dallas. Agents also intercepted nearly $1.5 in cash proceeds related to drug trafficking by this organization. Gomez-Ramirez was arrested after crossing into the United States from Mexico.
Today, U.S. District Judge Diana Saldaña accepted the plea of Gomez-Ramirez, of Nuevo Laredo, Mexico, to this conspiracy. In the guilty plea, he admitted he helped with the transportation of drugs from Mexico to Dallas and the surrounding areas. Specifically, Gomez-Ramirez admitted to coordinating the transportation of a 123.4 kilogram seizure of cocaine on Feb. 11, 2011.
Gomez-Ramirez faces a mandatory minimum sentence of 10 years and a maximum of life in prison as well as a $10 million fine. The United States is also seeking a money judgment in the amount of $5,303,660 based on the amount of cocaine and money transported by the organization during the span of the conspiracy.
The case is the result of a four-year Organized Crime Drug Enforcement Task Force investigation dubbed Operation Roadblock led by the Drug Enforcement Administration with the assistance of Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Marshals Service. Assistant United States Attorney James Hepburn is the Assistant United States Attorney handling the case.
Ohio Man Pleads Guilty to Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that Christopher J. Bernards, age 32, of Cincinnati, Ohio appeared before U.S. District Judge Karen E. Schreier on March 22, 2013 and pled guilty to an Indictment that charged him with Failure to Pay Legal Child Support. The maximum penalty upon conviction is two years imprisonment; a $250,000.00 fine; one year supervised release; one additional year of custody upon revocation; a $100.00 assessment fee; and child support restitution amount owing at the time of sentencing.
Bernards was ordered by the Third Judicial Circuit Court, Beadle County, South Dakota to pay $189.00 per month for his minor child, commencing April 1, 1999. At the time of Indictment, he had not made a child support payment since July of 2010, and the total arrearage amount was $10,719.30.
The investigation was conducted by the Department of Health and Human Services, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Thomas J. Wright.
A presentence investigation was ordered and a sentencing date was set for June 17, 2013. The defendant was released on bond pending sentencing.
North Hollywood Man Who Aimed Laser at Aircraft in Violation of 2012 Federal Law Sentenced to 30 Months in PrisonRead the Press Release
LOS ANGELES – A federal judge who said the prison term should serve as a message to other would-be defendants today sentenced a North Hollywood man to 30 months in federal prison for aiming a laser beam at a plane and a police helicopter.
Adam Gardenhire, 19, was sentenced by United States District Judge Stephen V. Wilson.
In imposing the prison sentence, Judge Wilson rejected Gardenhire’s arguments that aiming a laser at an aircraft in flight was not really very dangerous and determined that, by deliberately targeting the aircraft with his laser, Gardenhire had recklessly endangered the safety of the aircraft.
Gardenhire pleaded guilty in October 2012 to one count of aiming the beam of a laser at aircraft. Gardenhire was arrested in April 2012 after being indicted by a federal grand jury on charges of aiming a laser pointer at a private plane and a helicopter operated by the Pasadena Police Department.
The federal statute used to charge Gardenhire is part of legislation signed into law in 2012 by President Obama making it a federal crime to deliberately aim a laser at an aircraft. The indictment of Gardenhire marked only the second time the new statute had been used in the United States.
According to court documents, Gardenhire deliberately aimed a commercial-grade green laser at multiple aircraft on the evening of March 29, 2012. The laser attack was initially reported by a pilot operating a privately owned Cessna Citation as the pilot was preparing to land at Burbank Airport. The laser struck the pilot in the eye multiple times and caused him to suffer vision impairment that lasted for hours.
Later that evening, Gardenhire aimed his laser at a police helicopter several times. The helicopter was operated by a pilot with the Pasadena Police Department, who was responding to the report of the laser attack on the Cessna. The helicopter pilot was wearing protective gear and did not suffer eye damage or vision impairment as a result of the laser.
Air and ground investigators with the Los Angeles Police Department, the Burbank Police Department, the Pasadena Police Department and the Burbank Airport Police Department identified Gardenhire as a suspect later that evening.
The investigation into Gardenhire was conducted by the Los Angeles Police Department, the Pasadena Police Department, the Burbank Police Department, the Burbank Airport Police Department, the Federal Aviation Administration, and the Federal Bureau of Investigation.
Reports of laser attacks have increased dramatically in recent years as strong laser devices have become more affordable and widely available to the public. Technology has advanced the effectiveness of laser devices and has increased potential safety hazards for pilots operating aircraft, as well as their passengers and crew. Hazards to pilots include distraction and impaired vision, both of which are particularly dangerous during the critical takeoff and landing phases of flight. In some cases, pilots have reported the need to abort landings or relinquish control of the aircraft to another pilot as a result of laser attacks. California consistently leads the nation in reports of laser attacks on aircraft, with more than 500 of the nearly 3,500 nationwide laser attacks reported in 2012.
Release No. 13-043
North Dakota Man Indicted for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fargo, North Dakota man has been indicted by a federal grand jury for Failure to Pay Legal Child Support.
Donald J. Lorenzen, a/k/a Donnie J. Lorenzen, a/k/a Donald L. Lorenzen, age 48, was indicted by a federal grand jury on February 5, 2013 for failing to pay over $30,833.00 in past due child support. He appeared before U.S. Magistrate Judge William D. Gerdes on March 18, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is two years imprisonment; a $250,000.00 fine; one year supervised release; one additional year upon revocation; a $100.00 assessment fee; and child support restitution amount owing at the time of sentencing.The charge is merely an accusation and Lorenzen is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Thomas J. Wright is prosecuting the case.
Lorenzen was released on bond pending trial. A trial date has not been set.
North Dakota Man Charged with Lacey Act ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that Jeffrey Volk, age 42, of Fort Yates, North Dakota was charged on February 14, 2013 for Lacey Act Violations.
Volk appeared before U.S. Magistrate Judge William D. Gerdes on March 19, 2013 and pled not guilty to the Information. The maximum penalty upon conviction is 1 year of imprisonment, a $100,000 fine, or both; 1 year of supervised release and an additional year of supervised release upon revocation. Restitution and a $25 special assessment may also be ordered. The charge is merely an accusation, and Volk is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Fish and Wildlife Service and Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case. Volk was released on bond pending trial which has not been set.
Muskegon-Area Landlord Convicted by Jury of Arson, Insurance Fraud, and Tax FraudRead the Press Release
Gerald Singer “arson for profit scheme” lasted almost twenty yearsGRAND RAPIDS, MICHIGAN – A federal jury convicted Muskegon-area landlord Gerald Singer, 73, of two counts of Arson, three counts of Use of Fire to Commit Mail Fraud (Insurance Fraud), one count of Mail Fraud, four counts of Filing a False Tax-Related Document, and one count of Obstructing Tax Administration after a four-week trial. Singer was acquitted of three other counts of Use of Fire to Commit Mail Fraud. Gerald Singer was immediately taken into custody by the United States Marshal Service pending sentencing on August 21, 2013.
U.S. Attorney Patrick Miles stated, “The United States Attorney's Office and its federal and local law enforcement partners are committed to safeguarding our communities and removing individuals who intentionally destroy property, harm neighborhoods, and prey on the vulnerable, especially when their motivation is profit. Arson under any circumstance is a serious crime that endangers the lives of residents and first-responders who risk their lives searching for victims and suppressing the fire. It also costs neighbors with higher insurance premiums. Gerald Singer caused much damage and now justice caught up with him.”
The jury convicted Gerald Singer of arson and use of fire to commit mail fraud at the following properties, which were destroyed by fire:
- June 20, 1999: 1292 E. Broadway, Norton Shores, MI, a commercial building formerly known as “The Fair” fabric store, which was insured by Hartford Insurance and Westport Insurance;
- November 9, 2006: 250 Myrtle St., Muskegon, MI, an investment/rental property which was insured by Foremost Insurance; and
- August 28, 2007: 2608-2614 7th Street, Muskegon Heights, MI, a four-unit apartment complex insured by Farm Bureau General Insurance Company.
The mail fraud charge included those properties as well as fires at six additional properties in Grand Haven, MI; Muskegon Heights, MI; and Gary, IN, and two attempted fires at properties in Muskegon Heights, MI.
The jury also convicted Gerald Singer of filing a false tax-related document in the years 2005, 2006, 2007, and 2008, for failing to disclose to the IRS approximately $500,000 in insurance proceeds from the fire at 1292 E. Broadway, Norton Shores, MI. Finally, the jury found Singer guilty of obstructing the administration of the tax laws in the following five ways:
Causing to be filed false individual income tax returns for tax years 2005 through 2008;
Making false and misleading statements to IRS officials about his individual income tax returns;
Misleading his tax preparer by withholding information;
Concealing income from the IRS by means of “structuring” the payout of insurance funds; and
Causing the filing of false home buyer tax credit claims against the IRS.
“Arson for Profit is not a victimless crime. Our communities as a whole become the victim because arson destroys property and places an ever increasing economic burden on our communities. ATF is committed to the investigation and prevention of Arson and Arson for Profit schemes.” ATF Acting Special Agent in Charge, Gilbert Salinas stated. “I would like to commend the outstanding work and dedication of the United States Attorney’s Office in Grand Rapids, the Internal Revenue Service, Grand Rapids Office of the ATF, City of Muskegon Police and Fire Departments, Norton Shores Police and Fire Departments and the Gary Indiana Police Department”.
Internal Revenue Service Criminal Investigation Assistant Special Agent in Charge, Carolyn Weber, stated, “Gerald Singer lined his pockets with the proceeds of false insurance claims. The IRS will always go after those who seek to profit from illegal activities.”
A conviction for use of fire to commit mail fraud carries a mandatory minimum sentence of 10 years in prison, to be served after any other term of imprisonment. In the case of two or more convictions for using fire to commit mail fraud, the mandatory minimum sentence increases to 20 years. The arson charge carries a sentence of not less than 5 years and up to 20 years in prison. The mail fraud conviction carries a sentence of up to 20 years in prison. The tax counts carry up to 3 years of imprisonment. In addition to prison, Singer also faces the possibility of fines, costs, and restitution to victims. The sentence will be imposed by United States District Judge Gordon Quist after consideration of the applicable statutory factors and the advisory United States Sentencing Guidelines.
This case was prosecuted by Assistant U.S. Attorneys Michael MacDonald and Christopher O’Connor, and investigated by the Grand Rapids office of the Bureau of Alcohol, Tobacco, Firearms & Explosives; the Internal Revenue Service - Criminal Investigation; and the Muskegon Heights Fire Department.
END
Multiple Arrests in Wyoming and ColoradoRead the Press Release
This morning, law enforcement officers from multiple agencies from southeast Wyoming and Colorado began serving federal arrest warrants for 18 individuals located in both states.
The arrest warrants are the result of two long-term joint investigations by the Wyoming Division of Criminal Investigation and the federal Drug Enforcement Agency into the sale and possession of methamphetamine.
Once arrested, individuals will be taken before a Federal Magistrate Judge for an initial appearance. Identities of the individuals arrested will not be made public until all have had their initial appearance and the case has been unsealed.Mission Woman Indicted for Second Degree Burglary and LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota woman has been indicted by a federal grand jury for Second Degree Burglary and Larceny.
Victoria Brown, age 19, was indicted by a federal grand jury on February 13, 2013. She appeared before United States Magistrate Judge Mark A. Moreno on March 22, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to 15 years’ in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 Special Assessment. Restitution may also be ordered.
The charge is merely an accusation and Brown is presumed innocent until and unless proven guilty. The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Timothy M. Maher is prosecuting the case.
Brown was released on bond pending trial. A trial date has been set for April 30, 2013.
Minnesota Woman Indicted for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a Perhamn, Minnesota woman has been indicted by a federal grand jury for Failure to Pay Legal Child Support.
Jessica L. Voss, age 28, was indicted by a federal grand jury on October 10, 2012 for failing to pay over $19,085.00 in past due child support. She appeared before U.S. Magistrate Judge William D. Gerdes on March 19, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is two years imprisonment; a $250,000.00 fine; one year supervised release; one additional year upon revocation; a $100.00 assessment fee; and child support restitution amount owing at the time of sentencing. The charge is merely an accusation and Voss is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Thomas J. Wright is prosecuting the case.
Voss was released on bond pending trial, which has been set for May 21, 2013.
Minneapolis Felon Sentenced for Possessing A .40-caliber PistolRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 51-year-old Minneapolis felon was sentenced for possessing a .40-caliber pistol. United States District Court Judge Ann D. Montgomery sentenced Ronnie James Woods to 180 months in federal prison on one count of being a felon in possession of a firearm. Woods was indicted on June 19, 2012, and pleaded guilty on October 15, 2012.
In his plea agreement, Woods admitted that on May 3, 2012, he possessed a .40-caliber, Glock pistol while riding in a vehicle that was stopped by police. He then fled on foot, ultimately dropping the gun. Authorities subsequently apprehended him.
Because he is a felon, Woods is prohibited under federal law from possessing a firearm at any time. His prior convictions include second-degree robbery (Missouri, 1983), armed-criminal action (Missouri, 1983), forcible rape (Missouri, 1983), and kidnapping (Missouri, 1983). Woods also was convicted in Hennepin County, Minnesota, of first-degree burglary (1997) and fifth-degree controlled substances’ crimes (2009). In addition, he was convicted in St. Louis County, Minnesota, on two counts of third-degree controlled substances’ crimes (2002).Since Woods’ prior offenses constitute crimes of violence or serious drug crimes, sentencing in the current federal case was subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in federal prison for anyone convicted in federal court of being a felon in possession of a firearm if that person also has at least three prior state or federal convictions for crimes of violence or serious drug crimes. Because the federal criminal justice system does not have parole, a convicted offender will spend virtually his entire prison sentence behind bars.
This case was the result of an investigation by the Minneapolis Police Department and the U. S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Surya Saxena.
The case was charged under Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws.
The Hennepin County Attorney’s Office then teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against almost two dozen serious habitual criminals through Project Exile Minneapolis.Milton Man Convicted of Mortgage FraudRead the Press Release
BOSTON – A Milton man was convicted today of bank and wire fraud charges in connection with a property flipping scheme.
Edward Johnson, 52, pleaded guilty before U.S. District Judge Denise J. Casper to bank fraud and six counts of wire fraud.
From May through July 2006, Johnson recruited two financially unqualified individuals to buy multiple properties in Dorchester and Mattapan. To secure their participation in the scheme, Johnson, or others acting with him, promised these individuals that they would have no responsibility for any expenses or payments on the property. Johnson promised that the individuals would hold the titles in their name for a few months until the property was improved and sold, and in exchange, they would receive a payment for each property purchased. The individuals acted under the assumption that this would improve their credit so they could eventually buy their own homes. Johnson, and others, submitted false mortgage applications on behalf of these individuals that misrepresented their income, employment, prior indebtedness, and intention to reside in the purchased properties. The mortgages were not paid as promised and all of the properties went into foreclosure.
Sentencing is scheduled for June 27, 2013. On the charge of bank fraud, the sentence under the statute is a maximum of 30 years in prison, followed by five years of supervised release and a $1 million fine. For wire fraud, the sentence under the statute is a maximum of 20 years in prison, followed by three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz; Cary Rubenstein, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, New York Regional Office; Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner Edward Davis, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Lori J. Holik and Sandra S. Bower of Ortiz’s Economic Crimes Unit.
McLaughlin Man Arraigned on Assault ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota man has been indicted by a federal grand jury for Assault With a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Roman E. Weasel, Sr., age 38, was indicted by a federal grand jury on March 13, 2013. He appeared before U.S. Magistrate Judge William D. Gerdes on March 20, 2013 and pled not guilty to the indictment. The maximum penalty on each charge upon conviction is 10 years' imprisonment, a $250,000 fine or both, and a period of supervised release of 3 years. The charges are merely accusations and Weasel is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy Morley is prosecuting the case. Weasel was remanded to the custody of the U.S. Marshal. A trial date has not been set.
Martin Man Pleads Guilty to Controlled Substance ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that Michael James Poor Thunder, age 23, of Martin, South Dakota appeared before U.S. Magistrate Judge Veronica L. Duffy on March 20, 2013 and pled guilty to distribution of a controlled substance. The maximum penalty upon conviction is 20 years’ imprisonment and/or a $1,000,000 fine.
On March 7, 2012 Poor Thunder distributed morphine in Martin, South Dakota. The investigation was conducted by the Unified Narcotics Enforcement Team, South Dakota Division of Criminal Investigation, and Martin Police Department. The case is being prosecuted by Assistant U.S. Attorney Ted L. McBride.
A presentence investigation was ordered and a sentencing date has been set for July 15, 2013. The defendant was released on bond pending sentencing.
Manhattan U.S. Attorney Announces Guilty Plea of Ahmed Warsame, A Senior Terrorist Leader and Liaison Between Al Shabaab and Al Qaeda in the Arabian Peninsula for Providing Material Support to Both Terrorist OrganizationsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York and John Carlin, Acting Assistant Attorney General for National Security, announced today the unsealing of the guilty plea of AHMED ABDULKADIR WARSAME to a nine-count Indictment charging him with providing material support to al Shabaab and al Qaeda in the Arabian Peninsula (“AQAP”) - two designated foreign terrorist organizations - as well as conspiring to teach and demonstrate the making of explosives, possessing firearms and explosives in furtherance of crimes of violence, and other violations. WARSAME pled guilty on December 21, 2011, before U.S. District Judge Colleen McMahon in Manhattan federal court, pursuant to a cooperation agreement with the United States.
WARSAME, a Somali national in his mid-twenties, was captured in the Gulf of Aden between Somalia and Yemen by the U.S. military on April 19, 2011, and was questioned for intelligence purposes for more than two months. Thereafter, WARSAME was read his Miranda rights and, after waiving those rights, he spoke to law enforcement agents for several days. WARSAME arrived in the Southern District on July 5, 2011.
Manhattan U.S. Attorney Preet Bharara said: “The capture of Ahmed Warsame and his lengthy interrogation for intelligence purposes, followed by his thorough questioning by law enforcement agents, was an intelligence watershed. The handling of Warsame represents a seamless orchestration by our military, intelligence, and law enforcement agencies that significantly furthered our ability to find, fight and apprehend those who wish to do us harm. Warsame’s capture, cooperation, and prosecution is a major victory for the United States, for its citizens, and for justice.”
Acting Assistant Attorney General for National Security John Carlin said: “Ahmed Warsame served as a critical link between two foreign terrorist organizations and was an operational terrorist leader, commanding hundreds of fighters. His capture, successful interrogation and guilty plea demonstrate how U.S. military, intelligence and law enforcement assets coordinate to neutralize threats and protect the country. I thank all those responsible for this important operation.”
According to the Indictment, WARSAME’s sworn guilty plea allocution before Judge McMahon, and other public information:
From 2007 until April 2011, WARSAME conspired with others, including American citizens, to provide material support to al Shabaab. He fought as a soldier on behalf of al Shabaab in Somalia in 2009 and provided other forms of support to the terrorist organization, including explosives, weapons, and training. In addition, WARSAME possessed and used destructive devices, machine guns, and an AK-47 semi-automatic assault weapon in Somalia in support of al Shabaab.
WARSAME also brokered a weapons deal, arranging for al Shabaab to purchase weapons directly from AQAP. From 2009 until April 2011, he conspired with others, including American citizens, to provide material support to AQAP, in the form of money, training, communications equipment, and personnel. While WARSAME was in Yemen in 2010 and 2011, he received weapons, explosives, and other military-type training from the terrorist organization. In addition, he possessed and used grenades and an AK-47 semi-automatic assault weapon in Yemen in support of AQAP.
From 2010 until April 2011, WARSAME conspired to teach and demonstrate the making of explosives and instruct other terrorists and would-be terrorists how to do so. Specifically, WARSAME received training in explosives directly from members of AQAP, intending to share that training with al Shabaab when he returned to Somalia.
WARSAME was captured at sea by the U.S. in April 2011 on his way back to Somalia from Yemen.
Al Shabaab was designated by the U.S. Department of State as a foreign terrorist organization in February 2008. AQAP was so designated in January 2010.
WARSAME pled guilty to all nine counts of the Indictment with which he was charged, and he faces the possibility of life in prison. The charges and maximum penalties are reflected in the attached chart.
Mr. Bharara praised the extraordinary investigative work of the FBI’s Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD. He also thanked the Department of Defense and the National Security Division of the Department of Justice.
This case is being handled by the Terrorism and International Narcotics Unit of the U.S. Attorney’s Office for the Southern District of New York, with assistance from the Counterterrorism Section of the Justice Department’s National Security Division. Assistant U.S. Attorneys Benjamin Naftalis, Adam S. Hickey, Sean S. Buckley, and Anna Skotko are in charge of the prosecution.
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U.S. v. Ahmed Warsame Indictment
Lower Brule Man Charged with Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota man has been indicted by a federal grand jury. Richard Johnson, age 49, was indicted by a federal grand jury on March 13, 2013 for Sexual Abuse of a Minor. Johnson appeared before U.S. Magistrate Judge Mark A. Moreno on March 20, 2013 and pled not guilty to the Indictment.
The maximum penalty upon conviction is any term of years up to life imprisonment, $250,000 fine, or both; a mandatory minimum term of supervised release of 5 years up to a maximum of life. If Johnson is found to have violated any condition of his supervised release, he may be incarcerated for an additional term of 2 years for each violation with one exception. If Johnson commits a new felony violation of chapter 109A (sexual abuse), chapter 110 (sexual exploitation and other abuse of children), chapter 117 (transportation for illegal sexual activity and related crimes), section 1201 (kidnaping), or section 1591 (sex trafficking of children or by force, fraud, or coercion), while on supervised release, he may be incarcerated for a mandatory minimum term of 5 years up to life for each violation. Restitution and $100 to the Victim Assistance Fund may also be ordered.
The charge is merely an accusation, and Johnson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs and Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case. Johnson was released on bond pending trial which has been set for May 14, 2013.
Lower Brule Man Charged with Assaulting, Resisting and Impeding A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota man has been indicted by a federal grand jury.
Marty LaRoche, age 19, was indicted by a federal grand jury on March 13, 2013 for Assaulting, Resisting and Impeding a Federal Officer. LaRoche appeared before U.S. Magistrate Judge Mark A. Moreno on March 20, 2013 and pled not guilty to the Indictment. The maximum penalty upon conviction is 8 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment may also be ordered.
The charge is merely an accusation, and LaRoche is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs and Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case. LaRoche was remanded to the custody of the U.S. Marshal Service pending trial which has been set for May 14, 2013.
Little Eagle Man Arraigned on Assault ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that a Little Eagle, South Dakota man has been indicted by a federal grand jury for Assault Resulting in Serious Bodily Injury.
Ira D. Weasel, age 32, was indicted by a federal grand jury on March 13, 2013. He appeared before U.S. Magistrate Judge William D. Gerdes on March 20, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 10 years' imprisonment, a $250,000 fine or both, and a period of supervised release of 3 years. The charge is merely an accusation and Weasel is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy Morley is prosecuting the case.
Weasel was released on bond pending trial, which has been set for May 21, 2013.
Leader of PCP Distribution Conspiracy Exiled to over 15 Years in PrisonRead the Press Release
Arrested en Route to Robbing a Cocaine DealerGreenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Robert Lee Jones, age 26, of Capitol Heights, Maryland, today to 188 months in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute phencyclidine (PCP), possession with intent to distribute crack cocaine; being a felon in possession of a firearm; and conspiracy to use and carry a firearm in relation to a crime of violence.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to his plea agreement, from January 2008 through February 2012, Jones conspired to sell PCP at the Central Gardens Apartment complex in Capitol Heights. Jones periodically lived in the apartment complex. The conspirators used violence or threatened to use violence to control their territory and prevent competition from other drug dealers. Over the course of the conspiracy, Jones, either alone or with another conspirator, sold PCP to a confidential source on at least 18 occasions. Jones was responsible for the distribution of between one and three kilograms of PCP.
Jones and two co-conspirators, who were armed with firearms, were arrested on February 10, 2012 on the way to a planned robbery of a cocaine dealer. Law enforcement executed a search warrant at the Central Gardens apartment where Jones was living at the time and seized a 5.56 caliber semi-automatic rifle along with a 30 and 100 round magazine; 22 rounds of various caliber ammunition; approximately 98 grams of crack cocaine; at least 211 grams of PCP; and drug paraphernalia.
Jones was previously convicted of a felony and was prohibited from possessing firearms or ammunition.
United States Attorney Rod J. Rosenstein commended the ATF, Prince George’s County Police Department and Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Steven E. Swaney, who prosecuted the case.
Last of Los Zetas Money Launderers Ordered to PrisonRead the Press Release
LAREDO, Texas – Laredoans Laurencio Montes, 43, and Jose Luis Gonzales, 28, have been sent to federal prison for their roles in an Organized Crime Drug Enforcement Task Force (OCDETF) investigation relating to the laundering of millions of drug proceeds by Los Zetas, United States Attorney Kenneth Magidson announced today. Montes, aka “Yeyo,” and Gonzalez each entered a plea of guilty to one count of conspiracy to launder drug proceeds on Oct. 30, 2012.
Today, U.S. District Court Judge Marina Garcia Marmolejo sentenced Montes, considered to be an organizer, to 120 months in federal prison. A final order of forfeiture was further ordered in the amount of $6 million against him. Gonzales, determined to be a minimal participant in the conspiracy, received a 60-month term of imprisonment to be followed by three years of supervised release. The court entered a final order of forfeiture against Gonzales in the amount of $2,999,319.
OCDETF Operation El Chacal was initiated in 2010 and culminated in several indictments being returned in November 2011 in Laredo and San Antonio as well as Chicago, Ill. Agents had identified a Los Zetas cell leader of a significant money laundering organization based in Nuevo Laredo, Tamaulipas, Mexico who laundered drug proceeds for the Zeta drug trafficking organization. The investigation revealed the organization shipped multiple loads of cocaine from Mexico to major distribution centers in the United States such as Chicago, Philadelphia, Pa., and Dallas.
The organization fronted the cocaine loads to distributors and, after the sale and distribution of the drugs, awaited the collection of drug proceeds and resulting payments. A co-conspirator based in Chicago distributed the cocaine and collected the proceeds, while co-conspirators in Dallas and Chicago collected, stored and prepared the drug proceeds for transportation to Laredo and Eagle Pass and then to into Mexico.
During the course of the investigation, a total of approximately $21 million was seized from various tractor trailer drivers, other couriers and stash homes in the Texas and Illinois which was destined to be transported into Mexico for delivery to the Zeta drug trafficking organization.
Montes was identified as a co-conspirator who recruited truck drivers to transport bulk cash drug proceeds for the Organization and coordinated the cash deliveries from the Chicago area to Laredo totaling approximately $6 million. Gonzales was identified as a facilitator who assisted his brother-in-law and co-defendant Nelson Casarez at a Laredo truck yard where bulk cash was delivered by truck drivers. Gonzales assisted Casarez in receiving the money in Laredo and safekeeping it until other co-conspirators were sent to pick it up and transport it to Nuevo Laredo, Mexico.
These sentencings mark the sixth and seventh defendants to be convicted and sentenced in Laredo relating to this indictment.
Other co-defendants who have entered pleas of guilty to the money laundering conspiracy and have been sentenced include Casarez, 35, Josue Alejandro Salinas, 22, Miguel Santos, 42, all of Laredo; David Villarreal, 40, a Mexican National; and Jose Vasquez, 44, a Honduran National.
Judge Marmolejo sentenced Vasquez, Villarreal and Salinas to respective terms of 87, 97 and 84 months in September 2012. The next month, Casarez received a sentence of 108 months and was assessed a $5,000 fine, while Santos was ordered to serve a 72-month term of imprisonment. Final orders of forfeiture were also entered against all men ranging from nearly $1.5 million to $4 million.
The case was investigated by agents of the Drug Enforcement Administration and Internal Revenue Service – Criminal Investigation and prosecuted by Assistant United States Attorney Mary Lou Castillo.
Largo Puppeteer Pleads Guilty to Possession and Receipt of Child PornographyRead the Press Release
Tampa, FL - United States Attorney Robert E. O'Neill announces that Ronald William Brown (57, Largo) today pleaded guilty to an eight count Superseding Indictment charging him with three counts of possession of child pornography and five counts of receipt of child pornography. He faces a maximum penalty of 10 years in federal prison for each possession count, and a mandatory minimum of 5 years, up to 20 years’ imprisonment for each receipt offense.
Brown was arrested at this home in July 2012 on federal charges stemming from a multi-jurisdiction child pornography investigation.
This case was investigated by U.S. Immigration and Customs Enforcement's Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Amanda C. Kaiser.
It is another case 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.
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Justice Department Reaches Settlement with Georgia Company to Resolve Immigration-related Unfair Employment PracticesRead the Press Release
The Justice Department announced today that it reached an agreement with Poulan Pecan, resolving allegations that the company violated the anti-discrimination provision of the Immigration and Nationality Act (INA). Poulan Pecan is a supplier of pecans located in Poulan, Ga.
The Justice Department’s Civil Rights Division initiated its investigation of Poulan Pecan in 2012, based on a claim by an individual who called a department hotline and complained that the pecan-producing company requested specific documentation from her to establish her work authorization. The department’s investigation concluded that Poulan Pecan discriminated against work-authorized non-U.S. citizens by requiring specific and more documents than necessary from them when completing the Form I-9, Employment Eligibility Verification, while not imposing similar requirements of U.S. citizens.
Under the terms of the agreement, Poulan Pecan will pay $500 in civil penalties and be subject to monitoring of its employment eligibility verification practices for a period of one year. Designated Poulan Pecan officials have already completed training by the Justice Department on the anti-discrimination provision of the INA. The case settled prior to the Justice Department filing a complaint in this matter.
“Individuals should be treated equally during the employment eligibility verification process,” said Gregory Friel, Deputy Assistant Attorney General for the Civil Rights Division. “This means not placing additional requirements, documentary or otherwise, on individuals based on their citizenship status.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. For more information about protections against employment discrimination under the immigration laws, call the OSC’s worker hotline at 1-800-255-7688 (1-800-237-2525, TDD for hearing impaired), call the OSC’s employer hotline at 1-800-255-8155 (1-800-362-2735, TDD for hearing impaired), sign up for a no-cost webinar at www.justice.gov/about/osc/webinars.php , email [email protected] or visit the website at www.justice.gov/crt/about/osc .
Justice Department Files Motion to Dismiss Antitrust Lawsuit<br /> Against Blue Cross Blue Shield of Michigan After Michigan Passes<br /> Law to Prohibit Health Insurers from Using<br /> Most Favored Nation Clauses in Provider ContractsRead the Press Release
WASHINGTON – The Department of Justice today filed a motion to dismiss its antitrust lawsuit against Blue Cross Blue Shield of Michigan (BCBSM) after the state of Michigan passed a law that prohibits health insurers from using most favored nation clauses (MFN) in contracts with health care providers. In its lawsuit, the department challenged BCBSM’s use of MFNs, alleging that its agreements with hospitals raised hospital prices charged to other insurers, prevented insurers from entering local markets and discouraged discounts. The department said the combination of the new law and a previous order by the Michigan Insurance Commissioner that prohibits MFN clauses in health insurer’s provider contracts provides the relief the department sought in its lawsuit against BCBSM, rendering further proceedings unnecessary.
The department and the state of Michigan’s Attorney General today filed a stipulated motion requesting that the U.S. District Court for the Eastern District of Michigan in Detroit dismiss the lawsuit without prejudice. BCBSM joined in the motion. The department’s Antitrust Division, along with the state of Michigan, originally filed its lawsuit on Oct. 18, 2010.
“The Department of Justice’s antitrust lawsuit alleged that Blue Cross Blue Shield of Michigan’s MFN clauses likely raised health care costs, harmed consumers and prevented other health plans from entering local markets,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The law just enacted by Michigan addresses the department’s concerns by eliminating MFNs and ensuring that Michigan consumers will benefit from enhanced health insurance competition.”
In the healthcare context, MFN provisions generally refer to contractual clauses between health insurance plans (buyers) and healthcare providers (sellers) that essentially guarantee that no other plan can obtain a better rate than the plan wielding the MFN.On March 18, 2013, the state of Michigan enacted legislation that, among other reforms, prohibits health insurers, including BCBSM, from including or using MFNs in provider contracts. The MFN ban takes effect on Jan. 1, 2014. Since Feb. 1, 2013, the Michigan Insurance Commissioner’s order has prohibited all MFN clauses in any health insurer’s provider contracts.
The department and the state of Michigan alleged in their complaint that the MFN clauses in BCBSM’s contracts with Michigan hospitals decreased competition among health plans. Some of BCBSM’s MFN clauses required hospitals to charge BCBSM’s competitors at least as much as the hospitals charged BCBSM. Other BCBSM MFN clauses required hospitals to charge competitors more than the hospitals charged BCBSM, often by a specified percentage. Moreover, BCBSM often agreed to raise the prices that it paid hospitals, in part to obtain MFN clauses.
At trial, the department and the Michigan Attorney General intended to demonstrate that BCBSM’s MFN clauses reduced competition between BCBSM and its rival insurers and discouraged other health plans from entering or expanding in markets throughout Michigan, which increased prices self-funded employers and their employees paid to hospitals, and likely increased prices other Michigan residents and their employers paid to health plans and hospitals.
The Antitrust Division continues to investigate the use of MFN clauses in health plan contracting in other areas. The department has observed that MFN clauses used by health plans that have market power in the sale of health insurance can reduce competition by, for example, encouraging hospitals to contract with smaller health plans at higher rates or through less efficient reimbursement models. The department remains committed to challenging any anticompetitive use of MFN clauses by health plans. The division has seen increased awareness of the potential anticompetitive effects of MFN clauses. For example, insurers in areas such as North Carolina have recently stopped using MFN clauses in their contracts with hospitals and other providers.Blue Cross Blue Shield of Michigan is a Michigan nonprofit healthcare corporation headquartered in Southfield, Mich. It is the largest provider of commercial health insurance in Michigan.
The case remains open until the court acts on the stipulated motion for dismissal without prejudice.
Jury Convicts Remaining Defendants for Area Armed Bank RobberiesRead the Press Release
HOUSTON – The two remaining defendants standing trial for their involvement in the armed robbery of several Houston-area banks have been convicted on all counts as charged, United States Attorney Kenneth Magidson announced today along with FBI Special Agent in Charge Stephen Morris. Early this afternoon, the federal jury convicted Larry Smith, 37, and Raymond Tierra Johnson, 32, each of one count of conspiracy as well as seven and two counts of bank robbery, respectively, after five days of trial and less than two hours of deliberations. Both were also convicted of using a firearm during and in furtherance of a bank robbery.
“Let these guilty verdicts send a strong message,” said Morris. “The old fashioned crime of bank robbery is one that doesn’t pay. The FBI will continue to work alongside our local law enforcement partners in the FBI Bank Robbery Task Force to ensure violent criminals are brought to justice.”
A total of 14 defendants were charged with their respective involvements in a series of armed bank robberies of Houston area banks including the robbery of the Pearland Chase branch bank on Dec. 31, 2010. Jeremy Benton, 22, was charged by information and later pleaded guilty, while Smith, Johnson and 11 others were charged in a superceding indictment returned July 6, 2011. Glenn Bonner, 41, pleaded guilty on the first day of trial last week. Co-defendants Gregory Wayne Ferguson, 20, Arlington Davis Wilkes aka AD, 22, Carl Ray Turner Jr. aka CT, 26, Edward Johnson, 28.,John Berley Scott aka Fresh, 31, Derrick Lashon Paley aka Crybaby, 34, Michael Maurice Wilson Jr. aka Blue/Mikey Poo, 26, Roderick Marshall Beagle, 40, Michael Dushon Duncan aka Mikey, 21, and Kelvin Dewayne Thomas aka Little Kevin, 22, each had previously entered guilty pleas.
Smith was convicted today of committing bank robbery of the Wells Fargo branches on 10978 Grant Road and 13150 Louetta on Aug. 23, 2010, and Nov. 2, 2010, respectively, Wells Fargo locations at 14001 Memorial and 12859 Kimberly Lane in Houston, both on Oct. 7, 2010, the Comerica Bank on Sept. 13, 2010, and the Citibank at 14104 NW Freeway. The jury found he used a firearm in the offenses on Sept. 14 and Nov. 2, 2010. Both defendants were convicted of robbing the Chase Bank at 24230 Northwest Freeway in Cypress and for using a firearm in the offense. Johnson was convicted of bank robbery for the Dec. 31, 2010, robbery of the Chase Bank at 1915 North Main in Pearland and for using a firearms in the commission of that crime.
The conspiracy involved “casing” banks for robberies and the selection of banks that did not have security guards or bullet resistant bandit barriers Evidence at trial indicated the conspirators used lookouts during robberies and used stolen or “hot” cars as get-a-way vehicles to commit the offenses. The conspirators recruited others to assist them to rob the banks in exchange for a share of the proceeds taken.
Evidence and testimony revealed most bank robberies were effected through the use of demand notes that Smith had written and through the brandishing and firing of firearms during the course of the robbery to ensure compliance with their demands.
Testimony revealed some of the violence witnessed by those in the banks and the threats made to gain compliance. One witness described the event as a life changing experience.
For the conviction of conspiracy to commit bank robbery, both face a maximum punishment of five years imprisonment and/or a $250,000 fine. Each conviction of bank robbery also carries a maximum punishment of 20 years incarceration (or 25 years if firearms displayed). Discharging a firearm during and in furtherance of a bank robbery carries a mandatory punishment of 10 years on each conviction which must be served consecutive to any sentences imposed for the underlying bank robbery convictions.
The charges against these defendants are the result of a federal investigation conducted by the FBI with the substantial assistance and cooperation of the Houston Police Department, Harris County Sheriff’s Office, Harris County Precinct 4 Constable’s Office, Harris County District Attorney’s Office, Crimestoppers, Friendswood Police Department, Pearland Police Department and the Brazoria County District Attorney’s Office. The United States Attorney wishes to recognizes each of these investigative agencies as well as the security departments of Wells Fargo and JP Morgan Chase for their outstanding efforts.
Assistant U.S. Attorneys Suzanne Elmilady and Kebharu Smith are prosecuting the case.
Judge Sentences Oil City Man to Prison for Possessing Child PornographyRead the Press Release
ERIE, Pa - A former resident of Oil City, Pennsylvania, has been sentenced in federal court to 37 months in jail on his conviction of violating federal laws relating to the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge Sean J. McLaughlin imposed the sentence on Joseph Martin Glass, 53.
According to information presented to the court, Glass possessed computer images depicting minors engaging in sexually explicit conduct.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Department of Homeland Security, Immigration and Customs Enforcement and the Pennsylvania State Police for the investigation leading to the successful prosecution of Glass.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Husband and Wife Sentenced for Various Tax CrimesRead the Press Release
HOUSTON - Married couple James R. Dixon and Sharon C. Dixon have each been ordered to prison for committing separate tax crimes in two separately-filed, but related cases, United States Attorney Kenneth Magidson announced today along with Lucy Cruz, special agent in charge of Internal Revenue Service-Criminal Investigation. Both entered guilty pleas on their respective cases in October 2012.
Today, U.S. District Judge Vanessa Gilmore sentenced James Dixon to a term of 33 months in federal prison to be followed by three years of supervised release. He further ordered him to pay $1,397,511.30 in restitution.
U.S. District Judge Kenneth M. Hoyt sentenced Sharon Dixon on Feb, 27, 2013, to a term of 11 months in prison and ordered her to pay restitution in the amount of $183,801.39. Sharon Dixon pleaded guilty to two counts of willfully failing to file her U.S. Individual Income Tax Returns for 2007 and 2008.
James Dixon was convicted of one count of tax evasion, admitting that in an attempt to evade his and his spouse's full income tax liability for 2006, he willfully failed to report additional income of approximately $255,966.36 on his joint 2006 U.S. Individual Income Tax Return. Dixon admitted the additional income tax owed for his joint 2006 income tax year is approximately $59,379.05. For sentencing purposes, he stipulated the total relevant conduct, tax loss in the case, exceeds $890,000.
According to the plea agreement, the $890,000 includes the individual income taxes Dixon and his wife owe on their 2005 through 2008 income tax years plus more than $700,000 of unpaid employment taxes of a company for which James Dixon had the duty to pay over to the IRS. Dixon further agreed to pay restitution to the IRS of more than $1.3 million.
Previously released on bond, James Dixon was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Sharon Dixon 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 matter was investigated by IRS-CI and is being prosecuted by Assistant U.S. Attorney Charles J. Escher.
Henrico Car Dealer Pleads Guilty to Evading $698,000 in Taxes Owed to the IRSRead the Press Release
RICHMOND, Va. – Samad Jafari, 55, of Henrico, Va., pleaded guilty today to tax evasion as part of a multi-year scheme involving his used car sales business known as United Import Company, Ltd. (United Import). In addition, United Import plead guilty to structuring cash deposits to prevent banking institutions from reporting currency transactions to the Internal Revenue Service (IRS).
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; and Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service Criminal Investigation’s Washington, D.C., Field Office, made the announcement after the plea was accepted by United States District Judge Henry E. Hudson.
Jafari and United Import were charged by a criminal information filed on March 5, 2013. Jafari faces a maximum penalty of five years in prison when he is sentenced on June 21, 2013. The corporation faces a fine of up to $500,000, as well as imposition of a forfeiture monetary judgment for the amount of money involved in the illegal structuring activity.
In a statement of facts filed with plea agreements for both defendants, Jafari admitted he was the owner and operator of United Import, which has been in business since 1999. Jafari was the sole signatory and owner of a business account in the name of United Import. Beginning in 2006, Jafari developed a scheme to receive cash payments for the financing of used cars, and subsequently structured cash deposits into the business account, as well as other personal bank accounts. Jafari also created a second set of figures to provide to his accountant in preparing his 2006 and 2007 returns, which significantly understated the amount of cash payments he received for vehicle financing. The total tax loss identified in the investigation was in excess of $698,000.
In addition, Jafari – acting as President of United Import - structured or caused to be structured, over $735,000 in cash deposits during a 24-month time period in an effort to prevent banking institutions from filing a “Currency Transaction Report” or CTR. Banks are required to file CTRs under the Bank Secrecy Act for cash transaction in excess of $10,000, and the forms are used to detect criminal activity, including tax evasion. To avoid the reporting requirement, which had the potential to alert the authorities to the actual amount of cash he had received, Jafari broke deposits down into multiple transactions in amounts below $10,000, and used both business and personal accounts.
This case was investigated by the Internal Revenue Service - Criminal Investigation. Assistant United States Attorneys Laura Colombell Marshall and David Maguire are 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.Head Shop Owner Pleads Guilty to Conspiracy Charges in Treasure Valley CaseRead the Press Release
BOISE – William Oldenburg, 66, of Eagle, Idaho, pleaded guilty today in federal court to count four of the superseding indictment charging him with conspiracy to distribute controlled substance analogue, and count ten charging him with conspiracy to structure transactions, U.S. Attorney Wendy J. Olson announced. The indictment was returned by a federal grand jury in Boise on November 15, 2012.
According to court documents, Oldenburg is the owner of Gary's Dream, LLC, which operates Boise Beverage and Tobacco and The Pit Stop Express. The businesses, commonly referred to as “head shops,” are engaged in the unlawful sale of drug paraphernalia to drug users and drug traffickers. Items of drug paraphernalia were typically sold at the businesses under the guise of “tobacco products,” or with claims of other “legitimate” uses. According to the indictment, Oldenburg referred to much of the drug paraphernalia as “smoking accessories,” to be used only to smoke tobacco. However, virtually all of the smoking devices sold by Oldenburg were commonly used to ingest marijuana, hashish, and/or other illegal drugs, not tobacco.
Oldenburg admitted that beginning on March 1, 2011, and continuing through May 10, 2012, he knowingly conspired with other persons to distribute and possess with intent to distribute a mixture and substance containing a detectable amount of AM-2201 and UR-144, Schedule I controlled substance analogues, knowing the substance was intended for human consumption; and 813.45 kilograms of a mixture and substance containing AM-2201 or UR-144, both controlled substance analogues.
Oldenburg further admitted that between at least July 2011, and November 2012, he conspired with others to conduct a series of financial transactions involving the proceeds of the unlawful activity, in order to evade reporting requirements under federal law.
Conspiracy to distribute controlled substance analogue, as charged in count four of the superseding indictment, is punishable by up to twenty years in prison, a maximum fine of $1 million, and up to three years of supervised release. Conspiracy to structure transactions, as charged in count ten, is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release. The government is seeking forfeiture of assets derived from the criminal offenses, including cash, real property and personal property.
Sentencing is set for June 17, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
Oldenburg is among the seventeen individuals charged last year as part of Operation Not for Human Consumption, which targeted illegal sales of drug paraphernalia and “spice” at 13Treasure Valley businesses. According to search warrant affidavits, nine of the 13 businesses were openly selling “spice,” a substance that tested positive for AM-2201. The DEA has determined that AM-2201 is a controlled substance analogue. “Spice,” a synthetic form of cannabis, which is a psychoactive herbal and chemical product that, when consumed, mimics the effects of cannabis. In the spring of 2011, the Idaho Legislature criminalized the sale of “spice” under state law. In March of 2011, the Drug Enforcement Administration placed five synthetic cannabinoids into Schedule I of the Controlled Substances Act. It is against federal law to sell or offer for sale any paraphernalia that is primarily intended or designed for drug use, regardless of whether the seller advises their customers that the paraphernalia is for tobacco use only. The businesses are commonly referred to as “head shops.”
Operation Not for Human Consumption includes the cooperative law enforcement efforts of the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Boise Police Department, Ada County Sheriff's Office, Canyon County Sheriff's Office, Nampa Police Department, Meridian Police Department, and the Canyon County Prosecutor's Office. The U.S. Marshals Service and Idaho State Police provided assistance.
Grand Jury Indicts Seven on Gun & Drug ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA — Seven individuals were named in three
Indictments returned by a federal grand jury sitting in Martinsburg, West Virginia, last week.
United States Attorney William J. Ihlenfeld, II, announced the following indictments: CHRISTOPHER WAYNE WILLIAMS, age 39, of Mill Creek, West Virginia, was
named in a two-count Indictment charging him with one count of “Felon in Possession of a Firearm” and one count of “Possession of Stolen Firearms.” If convicted, WILLIAMS faces up to 10 years imprisonment and a $250,000 fine on each count. This case will be prosecuted by Criminal Chief Shawn A. Morgan and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.JASON S. SWISHER, age 30 and JENNIFER N. HILEMAN, age 29, of Bunker Hill, West Virginia, were named in a four-count Indictment. Count One charges SWISHER and HILEMAN with “Conspiracy to Distribute Heroin;” Count Two charges HILEMAN with “Distribution of Heroin;” Count Three charges SWISHER with “Distribution of Heroin;” and, Count Four charges HILEMAN with “Possession with Intent to Distribute Heroin.” If convicted, SWISHER and HILEMAN face up to 20 years imprisonment and a $1,000,000 fine on each count. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and will be prosecuted by Assistant United States Attorney Robert H. McWilliams, Jr.
FRANK K. BRINKMEYER, age 43; PATRICIA M. BRINKMEYER, age 66; CHARLOTTE M. JENKINS, age 38; and, MICHAEL B. SMITH, age 38, of Berkeley County, West Virginia, were named in a nine-count Indictment. FRANK BRINKMEYER is charged in Counts One, Three, Four, Five and Six with “Distribution of Heroin;” in Count Seven with “Possession with Intent to Distribute Heroin;” and, in Count Nine with “Conspiracy to Distribute Heroin and Oxycodone.” PATRICIA BRINKMEYER is charged in Count Two with “Distribution of Oxycodone;” in Counts Three and Four with “Distribution of Heroin;” and, in Count Nine with “Conspiracy to Distribute Heroin and Oxycodone.” JENKINS is charged in Count Two with “Distribution of Oxycodone,” in Counts Three, Four and Eight with “Distribution of Heroin;” and, in Count Nine with “Conspiracy to Distribute Heroin and Oxycodone.” SMITH is charged in Count Eight with “Distribution of Heroin” and, in Count Nine with “Conspiracy to Distribute Heroin and Oxycodone.” If convicted, each of the Defendants faces up to 20 years imprisonment and a $1,000,000 fine on each count. This case was investigated by the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, and the Berkeley County Sheriff’s Department.
This case will also be prosecuted by Assistant United States Attorney McWilliams. 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.Goodwin Charges Former Alpha Employees and Alpha Supplier in A Major False Billing SchemeRead the Press Release
Investigation Uncovers Extensive Fraud at Massey Legacy Mines Operated in Boone and Raleigh Counties
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin today announced charges in connection with a false billing scheme orchestrated by former employees of Alpha Natural Resources (“Alpha”) and certain companies that supplied supplies, equipment, and services to Alpha. Edward Ellis Mullins, 41, of Peytona, West Virginia, Joey R. Phalin, 36, of Crab Orchard, West Virginia, and Nicholas R. Coleman, 29, of Lester, West Virginia, are former local “sourcing agents” for Massey Energy (“Massey”) legacy mines operated along WV Route 3 in Boone and Raleigh counties. Donald Bryan Steele, 43, of Barboursville, West Virginia, is the owner of M&S Hydraulics, a major Alpha supplier with offices in Barboursville and a rebuild shop in Switzer, West Virginia. Each has been charged by information with wire fraud and aiding and abetting. All four have agreed to plead guilty and are cooperating with the ongoing investigation.
An investigation revealed that several mine sourcing agents, generally responsible for ordering goods and services for mining operations from Alpha suppliers, participated in an illegal scheme to obtain goods for their own personal benefit. The investigation further revealed that the sourcing agents, working in conjunction with the suppliers, hid numerous illegal transactions by creating false invoices. The false invoices, prepared by the supplier, were intended to look like legitimate purchases, but were really used to provide cash, gifts and other things of value to the sourcing agents and other Alpha employees.
“Today’s announcement is the first step in an ongoing criminal investigation,” U.S. Attorney Goodwin said. “People who accept bribes or who cheat their employers by approving fake bills are committing fraud, plain and simple, and my office will prosecute them to the fullest extent of the law.”
“Schemes like this create unfair obstacles for suppliers who want to do business honestly,” Goodwin continued, “and they drive up prices for everyone. There’s no place for that in the American economy.”
Mullins was employed as the sourcing agent for the Shonk Powellton #1 mine, operated by the Elk Run Coal Company, an Alpha subsidiary. Around November 2011, Mullins approached a supplier, who generally provided tires, wheels and other vehicle-related materials to Massey and now Alpha, about supplying him and other Alpha employees tires and wheels for their personal vehicles. In exchange, Mullins agreed to allow the tire seller to submit false invoices for payment to Alpha reflecting that tires used in the mining operations had been delivered. For its participation, the tire seller was told to “pad” the false invoice. The tire seller immediately provided this information to Alpha corporate security, who, in turn, contacted the FBI and West Virginia State Police. Over the course of the next six months, the criminal investigation revealed that not only Mullins, but other sourcing agents, including Phalin and Coleman, who were employed by another Alpha subsidiary, Marfork Coal Company, were also engaged in the false billing scheme.
Through the sourcing agents’ cooperation and other information, the agents identified an even more prominent supplier involved in the false-billing scheme. In February 2013, the FBI and the State Police confronted Steele, the owner of M&S Hydraulics, a major Alpha supplier. The significant evidence uncovered by the FBI and the State Police led Steele to agree to cooperate immediately in the investigation.
Mullins, Phalin, Coleman and Steele each face up to 20 years in prison and a $250,000 fine.
The investigation was conducted by the FBI and the West Virginia State Police with cooperation from Alpha Natural Resource’s internal security team. Assistant United States Attorney Thomas Ryan is in charge of the prosecutions.
In June 2011, Alpha Natural Resources finalized the purchase of Massey, including the mining divisions located along WV Route 3 in Boone and Raleigh counties.
Note: A sourcing agent refers to the individual located at each mine site who is responsible for ordering goods and services from vendors to ensure the continuation of mining operations.
Former Southern Illinois Hospital Employees Sentenced for Stealing Identities of Elderly Hospital PatientsRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that, Susan L. Harris, 28, of Marissa, Illinois, and Ashley C. Drummond, 25, of East St. Louis, Illinois, were sentenced for aggravated identity theft and conspiracy to commit mail fraud in the United States District Court for the Southern District of Illinois, East St. Louis Division. Harris was convicted following a two-day jury trial in December 2012. Today, the United States District Court sentenced Harris to 4 years in prison, to be followed by 3 years of supervised release. Harris was ordered to pay $7,648.97 in restitution and a $200 special assessment. Drummond, who pleaded guilty in November 2012, was previously sentenced to 2 years in prison, to be followed by a 3 year term of supervised release. Drummond also was ordered to pay $8,675.27 in restitution to various victims and a $200 special assessment.
“Preying upon the elderly, the sick, and the vulnerable when they are in the hospital, at their most vulnerable, reflects a cold and callous person devoid of a conscience. I will continue to aggressively prosecute these types of criminals so that they never profit from their greed,” said U.S. Attorney Wigginton.
Evidence presented at the trial of Susan Harris showed that Harris conspired with Ashley Drummond to steal personal identifying information of patients of a Southern Illinois hospital. The two women targeted elderly patients, particularly patients who came to the hospital from nursing homes and assisted living facilities. Drummond and Harris used the stolen personal information to apply for new credit card accounts in the victims’ names. Harris had worked at the hospital before forming the scheme with Drummond, but she was no longer an employee of the hospital during the period when patient identifying information was stolen. Instead, Harris relied on Drummond to steal information from the elderly patients’ charts. Drummond was a radiology technician, and it was her job to transport patients to and from the radiology department as needed. While transporting the patients, Drummond would steal victims’ personal information from their charts. Drummond, who pleaded guilty to her role in the offense, testified against Harris and admitted that, after stealing the information, she would call Harris to discuss which credit accounts to apply for with the newly acquired patient information, after which one of the women would attempt to apply for a new credit account. Harris was later caught on camera at a retail store using one of the credit cards obtained with the personal information of a 90-year-old woman who lived in an assisted living center and had been a patient at the hospital where Drummond worked.
This case was investigated by the Southern District of Illinois Identity Theft Task Force, the United States Postal Inspection Service, the Internal Revenue Service Criminal Investigation Division, the Social Security Administration Office of the Inspector General, the Maryville Police Department, the Glen Carbon Police Department, and the Collinsville Police Department. The case was prosecuted by Special Assistant United States Attorney Katherine L. Lewis and Assistant United States Attorney Michael J. Quinley.
If you think that you might be a victim of identity theft, contact the Southern District of Illinois Identity Theft Task Force at 618-410-6918.