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2 May 2013
Six arrested for Drug Conspiracy involving Heroin and Methamphetamin and for Money Laundering, five additional defendants still at largeRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that on April 16, 2013, a federal Grand Jury in Alaska returned a 36-count indictment against 11 individuals for their involvement in a drug conspiracy involving the distribution of heroin and methamphetamine in Alaska and the Eastern District of California, along with money laundering, and conspiracy to launder proceeds of the unlawful distribution of controlled substances.
This case is related to the recently announced, “Operation Gideon IV”, a Bureau of Alcohol, Tobacco, Firearms and Explosives multi-layered initiative designed to target and remove violent criminals who illegally traffic and possess firearms and to dismantle criminal organizations operating in Stockton, California.
Those indicted include:- Phillip Dixon Jr., AKA “Cheddar”, 28, of Manteca, CA;
- George Little, AKA “Nino”, 23, of Stockton, CA;
- Gloria Sarinana, 27, of Stockton, CA;
- Justin Fisher, 28, of Stockton, CA;
- Kyle Wislon, 24, of Chugiak, AK;
- Marcos Diaz, 25, of Stockton, CA;
- Norris Drummond, JR., 21, of Stockton, CA;
- Cesar Serna, 23, of Stockton, CA;
- Anthony Mixon, AKA “Ray”, 19, of Stockton, CA; and,
- Harry Hawkins III, AKA “Paulie”, 33, of Stockton, CA.
Special Agents of Bureau of Alcohol, Tobacco, Firearms and Explosives, IRS Criminal Investigation, the Drug Enforcement Agency, Homeland Security Investigations, and the California Highway Patrol have arrested Dixon, Little, Hawkins, Sarinana, Fisher, and Wilson. Wilson and Little were in Anchorage, Alaska. The other four defendants currently in custody were arrested in Stockton, California.
According to the indictment, between April 2012 and April 2013, Dixon, Diaz, Hawkins, Mixon, Serna, Little, Drummond, and Wilson, distributed heroin in Alaska. Between November 2012 and March 2013, Dixon, Drummond, and Little distributed methamphetamine in Alaska. In December 2012, Dixon distributed methamphetamine in Alaska and in the Eastern District of California.
The indictment further alleges that Dixon, Fisher, Sarinana, Serna, Diaz, Mixon, and Drummond conspired with one another to launder the proceeds of the drug sales in an attempt to conceal and disguise the nature, source, ownership, and control of the funds, and that they in fact laundered money in connection with transfers of money from Alaska to the Eastern District of California, knowing that the money represented the proceeds of drug sales.
The case is being investigated under the purview of the Organized Crime and Drug Enforcement Task Force which is made up of personnel from the U.S. Attorney’s Office, Federal Bureau of Investigation, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, Internal Revenue Service–Criminal Investigation, U.S. Marshals Service, U.S. Postal Inspection Service, U.S. Coast Guard, and the Anchorage Police Department.
According to Assistant U.S. Attorney Stephan Collins, Lead Organized Crime and Drug Enforcement Task Force Attorney for the District of Alaska, who presented the case to the grand jury, if convicted, the defendants face a mandatory minimum sentence of ten years prison for the drug conspiracy charge and a potential maximum of life imprisonment and a maximum sentence of 20 years imprisonment for the money laundering charges. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of the defendant.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Seven Wichitans Charged with Mortgage FraudRead the Press Release
WICHITA, KAN. – Seven people in Wichita have been charged in a federal mortgage fraud case, U.S. Attorney Barry Grissom said today.
An indictment unsealed here today alleges the scheme involved straw buyers and straw sellers, false loan applications and false supporting documentation submitted to lenders. Victims of the fraud included numerous banks, the Federal Housing Administration, the Federal Deposit Insurance Corporation (FDIC), the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac).
The following defendants were named in the indictment: Manjur Alam, 45, Wichita, Kan., who is charged with one count of conspiracy, six counts of wire fraud, one count of bank fraud, one count of making a false statement to the Department of Housing and Urban Development and one count of money laundering.
Janice Young, 26, Wichita, Kan., who is charged with one count of conspiracy, one count of wire fraud and one count of making a false statement to HUD.
Bruce Dykes, 44, Wichita, Kan., who is charged with one count of conspiracy and two counts of wire fraud, Christopher Ginyard, 27, Wichita, Kan., who is charged with one count of conspiracy and one count of wire fraud, Henry Pearson, Sr., Wichita, Kan., who is charged with one count of conspiracy and one count of wire fraud.
Henry Pearson, Jr., 28, Wichita, Kan., who is charged with one count of conspiracy and one count of bank fraud.
Steven Pelz, who is charged with one count of conspiracy and one count of wire fraud.The indictment alleges that Alam, whose realtor license had been suspended and who was on probation for a federal conviction, was the leader of the conspiracy. He used straw sellers to purchase homes and flip the properties to straw buyers. He recruited sellers from his homeland of Bangladesh. He lured the straw sellers with promises of quick and easy profits, while he recruited straw buyers with the prospect of using the houses as investments while promising them kickbacks.
The indictment also alleges: – Alam guided each straw buyer through the purchase process, acting as the buyer and seller agent, even though his realtor license was suspended. He falsely represented his wife as the realtor.
– The defendants were unqualified to receive mortgage loans for the homes they bought and each of them made false statements in their loan applications.
– Alam caused false Verification of Employment information and false Verification of Rent information on straw buyers to be submitted to lenders.
– None of the straw buyers used the homes as their primary residence although each indicated in loan applications that the homes would be a primary residence.
– Alam and the straw buyers submitted false invoices for repairs to title companies for property improvements.
– The proceeds from the fraudulently obtained loans resulted in losses to lenders of more than $221,000.Upon conviction the crimes carry the following penalties: Conspiracy: A maximum penalty of 20 years in federal prison and a fine up to $250,000.
Wire fraud: A maximum penalty of 20 years and a fine up to $250,000 on each count.
Bank fraud: A maximum penalty of 30 years and a fine up to $250,000.
Making a false statement: A maximum penalty of five years and a fine up to $250,000.
Money laundering: A maximum penalty of 10 years and a fine up to $250,000.Investigating agencies included the Internal Revenue Service, Housing and Urban Development - OIG, and the Federal Housing Financing Agency - OIG. Assistant U.S. Attorney Aaron Smith is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct
Sentences for April 29, 2013Read the Press Release
Donald George Cornelius, 30, of Russell, Massachusetts, was sentenced by Federal District Court Judge Alan B. Johnson on April 29, 2013, for conspiracy to possess with intent to distribute, and to distributing marijuana. Cornelius was arrested in Cheyenne, Wyoming. He received 36 months of imprisonment, to be followed by two years of supervised release and was ordered to pay a $100.00 special assessment and a $200.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Anthony Swift, 56, of Chicopee, Massachusetts, was sentenced by Federal District Court Judge Alan B. Johnson on April 29, 2013, for conspiracy to possess with intent to distribute, and to distributing marijuana. Swift was arrested in Cheyenne, Wyoming. He received 18 months of imprisonment, to be followed by two years of supervised release and was ordered to pay a $100.00 special assessment and a $200.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Saranac Lake Man Pleads to Reciept of Child PornographyRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. hochul, Jr. announced today that Michael Bombard, 24, of Saranac Lake, N.Y., pleaded guilty before U.S. District Judge Charles J. Siragusa, to receipt of child pornography. The charge carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that between August and September 2011, Bombard engaged in sexually explicit chats with a 14 year old female he met online. The defendant requested that the girl send him sexually explicit images of herself. At the time he received the images, Bombard knew that the images constituted child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea is the culmination of an investigation on the part of the Federal Bureau of Investigation's Cyber Task Force, under the direction of Richard M. Frankel, Acting Special Agent in Charge.
Sentencing is scheduled for August 19, 2013 at 3:00 p.m. before Judge Siragusa.
Saranac Lake Man Pleads to Reciept of Child PornographyRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. hochul, Jr. announced today that Michael Bombard, 24, of Saranac Lake, N.Y., pleaded guilty before U.S. District Judge Charles J. Siragusa, to receipt of child pornography. The charge carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that between August and September 2011, Bombard engaged in sexually explicit chats with a 14 year old female he met online. The defendant requested that the girl send him sexually explicit images of herself. At the time he received the images, Bombard knew that the images constituted child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea is the culmination of an investigation on the part of the Federal Bureau of Investigation's Cyber Task Force, under the direction of Richard M. Frankel, Acting Special Agent in Charge.
Sentencing is scheduled for August 19, 2013 at 3:00 p.m. before Judge Siragusa.
Richmond Man Convicted of Attempted Armed Home Invasion Robbery of Drug DealerRead the Press Release
RICHMOND, Va. – Robert Lee Pernell, 42, of Richmond, Va., was convicted today by a federal jury of conspiracy to interfere with commerce by robbery, attempt to interfere with commerce by robbery and use, carry, brandish and discharge a firearm in furtherance of the attempted robbery.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Carl Vasilko, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, made the announcement after the verdict was accepted by United States District Judge Robert E. Payne.Pernell faces a mandatory minimum term of 10 years of incarceration and a maximum penalty of life imprisonment when he is sentenced on July 25, 2013.
According to the evidence presented at trial, Pernell and another man, both armed with firearms, ambushed a man and woman as they returned home late at night to their Smoketree South residence, in Chesterfield, Virginia. The couple attempted to flee into the house, but one of the assailants jammed the barrel of a shotgun in the doorway, preventing it from closing. A struggle ensued just inside the doorway. The man was pushed out into the yard and one of the assailants shot a firearm at him. As this was happening, the woman fled for the back of the house and grabbed a pistol from the bedroom. Pernell, armed with a shotgun, pursued the woman and as he entered the bedroom fired the shotgun he was carrying. The woman fired the pistol she had grabbed, shooting Pernell in the arm. Pernell and his accomplice fled the house. Fearing for her life, the woman hid in the bedroom closet until the Chesterfield County Police arrived. A subsequent search of the house resulted in the discovery of approximately 116 grams of crack cocaine and over $125,000 in cash that belonged to the residents. The male victim and another male resident of the house subsequently pleaded guilty to drug trafficking charges.
This case was investigated by the Chesterfield County Police Department and the ATF. Assistant United States Attorney Olivia L. Norman is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Rapid City Man Sentenced for Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City man convicted of Aggravated Sexual Abuse was sentenced on April 29, 2013, by Chief Judge Jeffrey L. Viken, United States District Court. Faron Ben Cheyenne, age 27, was sentenced to 114 months’ imprisonment and 5 years’ supervised release and ordered to pay $100 to the Federal Crime Victims fund.
In July 2011, near Wounded Knee, Cheyenne sexually abused a 16-year-old girl. He pleaded guilty on November 29, 2012.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Rapid City Man Sentenced for Failing to Update Sexual Offender RegistrationRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City man convicted of Failure to Register was sentenced on April 29, 2013, by Chief Judge Jeffrey L. Viken, United States District Court. Donald Morris Kills Warrior, age 36, was sentenced to 15 months’ imprisonment and 5 years’ supervised release and ordered to pay $100 to the Federal Crime Victims Fund.
Kills Warrior failed to update his sexual offender registration as required from August 10, 2012, to October 18, 2012. He pleaded guilty on January 15, 2013.
This case was investigated by the U.S. Marshal’s Service. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Ramiro Nava-delgadillo Indicted for Illegal ReentryRead the Press Release
RAMIRO NAVA-DELGADILLO, age 33, a citizen of Mexico, was charged in a one-count indictment by a Federal Grand Jury today with illegal reentry by an alien previously removed, announced U.S. Attorney Dana J. Boente.
According to the indictment, on or about April 10, 2013, NAVA, an alien who had previously been removed from the United States, was found in the United States, within the Eastern District of Louisiana, without having obtained consent from the Secretary of the Department of Homeland Security to reapply for admission to the United States.
If convicted, NAVA, who was convicted of a felony prior to his previous removal, faces a maximum term of imprisonment of ten years, a fine of $250,000.00 and three years of supervised release following any term of imprisonment.
U. S. Attorney Boente reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by United States Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE). The prosecution is being handled by Special Assistant United States Attorney Robert Weir.
(Download Indictment )
Pierre Wilbourn Pleads Guilty to Charges Related to Filing Fraudulent Claims for Oil Spill CompensationRead the Press Release
PIERRE WILBOURN, age 40, a resident of Kenner, Louisiana, pled guilty in federal court today before U.S. District Judge Carl J. Barbier to one count of conspiracy to commit mail fraud relating to a fraudulent application he made or caused to be made to the Gulf Coast Claims Facility (GCCF) for financial assistance during the aftermath of the Deepwater Horizon oil spill, announced U.S. Attorney Dana J. Boente.
According to court documents, the GCCF made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion. The GCCF required individuals to verify loss of income. On October 4, 2010, WILBOURN applied for disaster assistance funds, representing that he was operating a commercial fishing business before the oil spill. However, WILBOURN had never worked as a commercial fisherman and he submitted or caused to be submitted false documentation to establish his false earnings. Based on WILBOURN’s fraudulent application, WILBOURN received approximately $20,000 to which he was not entitled.
Upon sentencing, scheduled for August 8, 2013, WILBOURN faces a maximum term of imprisonment of five years, a $250,000 fine, and three years of supervised release following imprisonment.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
The case was investigated by the U.S. Postal Inspection Service and the U.S. Secret Service. The prosecution is being handled by Assistant U. S. Attorney Julia K. Evans.
(Download Factual Basis )
Operator of San Fernando Valley Medical Clinics Sentenced to 14 Years in Federal Prison for Illegally Distributing OxycodoneRead the Press Release
SANTA ANA, California – A woman who operated four medical clinics in Reseda and Northridge was sentenced today to 14 years in federal prison for distributing the powerful and widely abused prescription narcotic oxycodone.
Anush Davtyan, 53, of Encino, was sentenced by United States District Judge David O. Carter after she pleaded guilty last September to one count of conspiracy to distribute oxycodone and possess with intent to distribute oxycodone.
In a plea agreement filed with the court, Davtyan admitted that she and her common-law husband operated four clinics where people could purchase oxycodone prescriptions for cash following a medical exam.
Oxycodone is sold under brand names such as Oxycontin, Percocet and Percodan.
Cappers brought customers to one of the clinics to obtain prescriptions for oxycodone. Those prescriptions were filled, and the drugs were brought back to Davtyan’s clinic and were diverted to a dealer for later sale on the street.
Davtyan admitted that she had bribed pharmacists to fill the large number of oxycodone prescriptions generated by her clinics. In one exchange recorded by investigators, Davtyan and her husband brought a pharmacist flowers and cognac to a pharmacist and then explained to the pharmacist how the prescriptions would be filled and how the pharmacist would get paid for filling prescriptions that came from her clinics.
During the execution of search warrants on September 1, 2011, federal agents found 1,116 pills in Davtyan’s Encino home and another 7,589 pills in her Mercedes parked in her garage.
Davtyan’s co-defendant and common-law husband, Armen Ayrappetyan, remains a fugitive and is believed to be residing in Russia.
The oxycodone distribution case against Davtyan was investigated by the Federal Bureau of Investigation; the Drug Enforcement Administration; IRS - Criminal Investigation; the United States Department of Health and Human Services, Office of Inspector General; the California Department of Justice; the Los Angeles County Sheriff’s Department; the Los Angeles County Health Authority Law Enforcement Task Force (HALT); the California Medical Board; the Simi Valley Police Department; and the Ventura County Sheriff’s Department.
Release No. 13-062
Omaha Man Sentenced for Possessing a FirearmRead the Press Release
United States Attorney Deborah R. Gilg announced that on May 2, 2013, Craig Grimes, age 36 of Omaha, was sentenced to 4 years, 8 months in prison for possessing a firearm in Omaha on March 15, 2012, after having previously been convicted of a felony offense. Following the prison term, Grimes will serve three years on supervised release.
On January 21, 2011, Grimes was convicted of conspiracy to distribute marijuana in the Federal District Court of New Mexico. A term of his supervised release from that conviction authorized the United States Probation office, with or without the assistance of law enforcement, to search his residence. On March 15, 2012, officers of the Omaha Police Department and United States Probation office searched Grimes’ residence. A Rossi .357 caliber revolver was found under Mr. Grimes’ bed that contained his DNA.
Federal law makes it a felony for anyone who has been convicted of a felony offense to possess a firearm.
Newport News Man Pleads Guilty to Robbery ChargesRead the Press Release
NEWPORT NEWS, Va. – Ronald W. Carr, 38, of Newport News, Va., pleaded guilty today to twenty-eight counts of robbery without a plea agreement.
Neil H. MacBride, U. S. Attorney for the Eastern District of Virginia and Carl J. Vasilko, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division, made the announcement after the plea was accepted by United States District Judge Henry C. Morgan.
Carr was charged in an indictment returned on January 16, 2013, with twenty-eight counts of robbery. Carr faces a maximum penalty of 20 years in prison on each of the robbery charges when he is sentenced on September 11, 2013, in Norfolk.
In a statement of facts filed during the plea hearing, Carr admitted to robbing the following stores and restaurants between December 18, 2010 and December 27, 2012: Advance Auto Parts, Auto Zone, Bojangles', Captain D’s, Dollar General, Family Dollar, KFC, and Long John Silver’s. The stores were located in York County, Hampton and Newport News, Va. In some instances, the same franchise was robbed, but in different locations. During the robberies, Carr possessed, brandished and pointed a firearm at store employees and demanded money.
The investigation of this case was led by the ATF’s Washington Field Division, with the assistance of the York County Sheriff’s Office, Newport News Police Department and the Hampton Police Division. Assistant United States Attorney Robert E. Bradenham, II is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.New York Man Sentenced to 21 Months in Prison for Transporting Oxycodone Trafficking CashRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that EMMANUEL BABE, also known as “Manny,” 40, of Mount Kisco, N.Y., was sentenced today by United States District Judge Janet C. Hall in New Haven to 21 months of imprisonment, followed by two years of supervised release, for transporting cash proceeds of an oxycodone trafficking ring.
This matter stems from “Operation Blue Coast,” an investigation headed by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area Task Force into the large-scale trafficking of oxycodone pills from Florida to Connecticut. The investigation revealed that an individual regularly purchased oxycodone from suppliers in Florida, transported the oxycodone to Connecticut by commercial airline or automobile, and sold the pills for profit to various Connecticut-based narcotics dealers. He then transported the proceeds of his oxycodone sales from Connecticut to Florida, either by having a courier drive the money or by using commercial airline flights.
In early 2011, the Florida narcotics trafficker hired BABE to drive large amounts of U.S. currency from New York or Connecticut to Florida. BABE eventually learned that the money he was transporting were the proceeds of the narcotics trafficker’s oxycodone sales in Connecticut. BABE, who was paid approximately $750 for each trip, transported at least $150,000 in cash to Florida in an effort to disguise the source of the funds.
BABE has been detained since his arrest on September 13, 2011. On February 6, 2013, he pleaded guilty to one count of conspiracy to commit money laundering.
Twenty individuals, including two law enforcement officers and three Transportation Security Agency officers, have been charged as a result of this investigation.
This matter is being investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area Task Force, which includes personnel from the Connecticut State Police and the Bridgeport, Milford, Norwalk, Stamford and Westport Police Departments; the Drug Enforcement Administration in Florida and the U.S. Department of Homeland Security Office of Inspector General. In addition, the U.S. Marshals Service and the Greenwich, Monroe, Danbury and Waterbury Police Departments have assisted the investigation.
U.S. Attorney Fein also acknowledged the cooperation of the Westchester County Department of Public Safety and the Florida Highway Patrol, and the substantial assistance provided by the United States Attorney’s Office for the Southern District of Florida.
This case is being prosecuted in the District of Connecticut by Assistant United States Attorneys Rahul Kale and Tracy Lee Dayton.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]New Jersey Man Sentenced to Eight-Year Prison Term for Possession of Child PornographyRead the Press Release
WASHINGTON – Gregory Loreng, 45, of Fanwood, N.J., has been sentenced to an eight-year prison term on charges of possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Loreng pled guilty to two counts of possession of child pornography in November 2012 in the U.S. District Court for the District of Columbia. He was sentenced on May 1, 2013 by the Honorable John D. Bates. Upon completion of his prison term, Loreng will be placed on 10 years of supervised release. He also must register as a sex offender for 15 years following his release.
According to the government's evidence, on April 23, 2012, Loreng contacted a man who he believed to be the father of an under-aged girl, using a social network site frequented by individuals who have a sexual interest in children. That man turned out to be an undercover officer with the FBI's Child Exploitation Task Force. Over the next few days, Loreng engaged in online conversations with the undercover officer. During this period, Loreng sent the officer multiple images of child pornography, including videos of adult men engaged in sexual acts with children.
Upon execution of a search warrant on the defendant’s residence in New Jersey, members of the FBI’s Child Exploitation Task Force recovered devices containing numerous additional videos and images of child pornography.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who prosecuted the case.
13-156New Haven Attorney Involved in Mortgage Fraud Scheme Sentenced to 21 Months in PrisonRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that DAVID KINNEY, 54, of Woodbridge, was sentenced today by Senior United States District Judge Alfred V. Covello in Hartford to 21 months of imprisonment, followed by two years of supervised release, for participating in a mortgage fraud scheme and for making false statements to federal law enforcement.
According to court documents and statements made in court, KINNEY, a New Haven-based attorney, participated in a mortgage fraud conspiracy in 2006 and 2007 by acting as the settlement agent in connection with fraudulent real estate transactions in New London County. As part of the scheme, KINNEY submitted, or caused to be submitted, materially false HUD-l settlement statements to lenders. In certain cases, KINNEY released a disbursement check before he had received the down payment listed on the HUD-1.
On November 5, 2007, in connection with the investigation of this matter, FBI special agents served KINNEY a subpoena at his New Haven office. On that date, KINNEY told agents that he had never given anyone a closing check prior to receiving the down payment money in connection with real estate closings that he handled when, in fact, he had done so on multiple occasions.
As part of his sentence, Judge Covello ordered KINNEY to pay restitution in the amount $507,155.24 and to forfeit $65,749.59.
On November 9, 2011, KINNEY pleaded guilty to one count of conspiracy and one count of making a false statement.
This case was investigated by the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development, Office of Inspector General. The case is being prosecuted by Assistant United States Attorneys Michael S. McGarry and David T. Huang.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Moses Lake Businessman Sentenced to Federal Prison for Failing to Report $2.6 Million in IncomeRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that J. Scott Vrieling, age 50, of Moses Lake, Washington, was sentenced today after having been convicted of four counts of failing to file federal income tax returns for the years 2004 through 2007. United States District Court Judge Robert H. Whaley, Jr. sentenced Vrieling to a 24-month term of imprisonment and a one-year term of court supervision following release from federal prison. Judge Whaley ordered Vrieling to pay $939,258 to the IRS for unpaid taxes, to file all delinquent income tax returns, and to pay penalties and interest in an amount to be determined by the IRS. Judge Whaley also ordered Vrieling to pay a fine in the amount of $100,000, the cost of prosecution in the amount of $14,269, and special penalty assessments in the amount of $100. Vrieling was taken into custody by the U.S. Marshal Service at the conclusion of today's sentencing hearing.
According to court records, Vrieling is the owner of Vrieling Financial located in Moses Lake, Washington. He is an independent insurance agent licensed to sell employee benefits, health insurance, and other insurance products.
By way of a four-count indictment that was returned by the grand jury in April, 2011, Vrieling was charged with four counts of failing to file federal income tax returns. Following a four-day jury trial in October, 2012, Vrieling was convicted on all counts. Evidence at trial established that Vrieling received over $2.6 million in gross income during the years 2004 through 2007. The evidence also established that Vrieling failed to file federal tax returns reporting this income and that he owed $956,258 in taxes.
Michael C. Ormsby said, "The United States Attorney's Office for the Eastern District of Washington aggressively investigates and prosecutes tax crimes. The privilege of living in the United States carries certain responsibilities, one of which is the payment of federal taxes. Everyone must pay their fair share and there are significant consequences for those who chose to cheat the system."
"There are people out there who willfully defy the tax laws based on false ideas and beliefs," said Tamera D. Cantu, Assistant Special Agent in Charge of IRS Criminal Investigation in Seattle. "Today's sentencing proves again that not fulfilling your tax obligations doesn't make them go away, it just puts you at risk of penalties, prosecution, and prison."
The investigation was conducted by the Internal Revenue Service, Criminal Investigation. The case was prosecuted by George J.C. Jacobs, III, an Assistant United States Attorney for the Eastern District of Washington.
11-CR-0057-RHW
Mobridge Man Charged with Escape from CustodyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mobridge, South Dakota, man has been indicted by a federal grand jury for allegedly escaping from the custody of the Bureau of Prisons while at the Community Alternatives of the Black Hills on April 10, 2013.
Gaylen Paul Sampson, a/k/a Thurman Paul Sampson, age 38, was indicted by a federal grand jury on April 16, 2013, for Escape from Custody. Sampson appeared before U.S. Magistrate Judge John E. Simko on April 24, 2013, and pleaded not guilty to the indictment. The maximum penalty upon conviction is 5 years of imprisonment and a $250,000 fine. The charge is merely an accusation, and Sampson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshal’s Service. Assistant U.S. Attorney Wayne Venhuizen is prosecuting the case. Sampson was remanded to the custody of the U.S. Marshal. A trial date has been set for July 2, 2013.
Mission Woman Guilty of Second Degree BurglaryRead the Press Release
United States Attorney Brendan V. Johnson announced that Victoria Brown, age 19, of Mission, South Dakota, appeared before U.S. District Judge Roberto A. Lange on May 1, 2013, and pled guilty to Second Degree Burglary. The maximum penalty upon conviction is 15 years in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 assessment to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on January 16, 2013, when Brown and others burglarized homes on the Rosebud Reservation and took property that did not belong to them.
The investigation was conducted by Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Timothy M. Maher.
A presentence investigation was ordered, and a sentencing date was set for July 24, 2013. The defendant was released from custody until July 19, 2013, when she must self-report to the custody of the U.S. Marshal.
Member of International Narcotics Trafficking Conspiracy Pleads Guilty in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that FRANCOIS SOUROU AHISSOU, a citizen of Togo, pled guilty today in Manhattan federal court to participating in a conspiracy to import narcotics into the United States. AHISSOU was arrested in Monrovia, Liberia, in coordination with Liberian authorities in February 2011 and transferred to the custody of the United States. He pled guilty before U.S. District Judge Naomi Reice Buchwald.
Manhattan U.S. Attorney Preet Bharara stated: “Francois Ahissou willingly sold cocaine to people who represented themselves to be associates of the Taliban, knowing that at least some of that cocaine was bound for the United States. But in reality, his ‘clients’ were working with the DEA and his deal was not consummated. West Africa has increasingly become a haven for narco-traffickers, and with the combined strength of our national and international law enforcement partners, we are dismantling these drug rings.”
According to the Indictment and Complaint previously unsealed in this case:
Beginning in the summer of 2010, AHISSOU and some of his co-defendants (the “co-defendants”) communicated with confidential sources (“CSs”) working with the DEA, who purported to represent the Taliban. The communications occurred by telephone, via e-mail, and in a series of audio-recorded and videotaped meetings over several months in various countries including Ghana, Ukraine, and Romania.
During meetings with the CSs beginning in June 2010, AHISSOU and his co-defendants agreed to sell multi-kilogram quantities of cocaine to the Taliban with the understanding that portions of the cocaine would be transported to the United States by commercial airline and then sold in this country for a profit. AHISSOU also helped arrange the sale of an approximately 800-gram sample of cocaine to the CSs in October 2010.
AHISSOU, 47, pled guilty to one count of conspiring to distribute cocaine, knowing and intending it would be imported into the United States. He faces a maximum sentence of life in prison. AHISSOU is scheduled to be sentenced by Judge Buchwald on August 7, 2013 at 3:45 p.m.
The charges against AHISSOU were the result of the coordinated efforts of the U.S. Attorney’s Office for the Southern District of New York and the DEA’s Special Operations Division, as well as the DEA Lagos Country Office, the DEA Warsaw Country Office, the DEA Ghana Country Office, the DEA Athens Country Office, and the DEA SECI (South East European Cooperative Initiative Regional Center for Combating Transborder Crime). Mr. Bharara praised the outstanding investigative work of the DEA and thanked the U.S. Department of Justice Office of International Affairs and National Security Division, the U.S. Department of State, and the U.S. Immigration and Customs Enforcement for their assistance. Mr. Bharara also thanked the Government of Liberia for its cooperation.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Christian Everdell, Aimee Hector, and Glen Kopp are in charge of the prosecution.
U.S. v. Maroun Saade, et al. S1 Indictment
Marvin Elcid Montes-cerrato Sentenced for Illegal Use of A Social Security NumberRead the Press Release
MARVIN ELCID MONTES-CERRATO, age 36, a citizen of Honduras, was sentenced yesterday in federal court by U. S. District Judge Stanwood R. Duval, Jr., announced U. S. Attorney Dana Boente. MONTES was sentenced to approximately five months imprisonment. In addition to the term of imprisonment, Judge Duval ordered that MONTES be placed on one year of supervised release following his term of imprisonment, during which time the defendant will be under federal supervision and risks an additional term of imprisonment should he violate any terms of supervised release.
According to court documents, on January 23, 2013, MONTES pled guilty to a one-count indictment admitting that on July 23, 2009, he falsely represented that a Social Security number had been assigned to him by the Commissioner of Social Security with intent to deceive, for the purpose of obtaining a Louisiana Driver’s License at a Louisiana Office of Motor Vehicles located inJefferson Parish. MONTES also admitted that he was illegally present in the United States.
This case was investigated by United States Immigration and Customs Enforcement - Enforcement and Removal Operations and the Jefferson Parish Sheriff’s Office. The case was prosecuted by Special Assistant United States Attorney Robert Weir.
Martin Man Guilty of Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that Edwin Johnson, age 61, of Martin, South Dakota, appeared before U.S. Magistrate Judge Veronica L. Duffy on April 18, 2013, and pleaded guilty to Sexual Abuse of a Minor. The Magistrate Judge is expected to recommend Johnson's plea be accepted by the District Court. The maximum penalty upon conviction is 15 years of imprisonment and a $250,000 fine.
The charge relates to Johnson having sexual intercourse with a 15 year old girl who was working for him on his farm near Martin between 2010 and 2011. The investigation was conducted by the Martin Police Department, South Dakota Division of Criminal Investigation, and the Federal Bureau of Investigation.
A presentence investigation was ordered, and a sentencing date was set for August 2, 2013. The defendant was released on bond pending acceptance of this plea and sentencing.
Manderson Man Charged with AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Manderson, South Dakota, man has been indicted by a federal grand jury for allegedly assaulting another man with a knife on October 8, 2012, at Manderson.
Chris Janis, a/k/a Israel Janis, age 39, was indicted by a federal grand jury on March 19, 2013, for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury. Janis appeared before U.S. Magistrate Judge Veronica L. Duffy on April 30, 2013, and pleaded not guilty to the indictment. The maximum penalty upon conviction is 10 years of imprisonment and a $250,000 fine. The charges are merely accusations, and Janis is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Wayne Venhuizen is prosecuting the case. Janis was remanded to the custody of the U.S. Marshal. A trial date has been set for July 9, 2013.
Man Charged with Mail FraudRead the Press Release
James Kennedy, 37, of Willow Grove, PA, was charged today by Indictment with mail fraud, announced United States Attorney Zane David Memeger. The indictment alleges that from 2007 to 2011, the defendant took money from his employer's accounts, without his employer's knowledge or consent, and kept the proceeds for his own use.
If convicted, the defendant faces a maximum possible sentence of 40 years imprisonment, a $500,000 fine, and 3 years supervised release.The case was investigated by the Federal Bureau of Investigation and has been assigned to Assistant United States Attorney Frank R. Costello, Jr.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Lower Brule Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man convicted of Abusive Sexual Contact was sentenced on May 1, 2013, by U.S. District Judge Roberto A. Lange. Douglas LaRoche, age 44, was sentenced to 35 months of imprisonment, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. He also needs to register as a sex offender.
LaRoche was indicted for the above charge by a federal grand jury on August 22, 2012 and pled guilty to a Superseding Information on January 4, 2013. The charge stems from an incident occurring on August 12, 2012, when LaRoche consumed alcohol with the victim and others. During the early evening hours, the victim returned to her home and went to bed. LaRoche went to the victim’s home and knowingly engaged in and attempted to engage in sexual contact with the victim, who at the time, was incapable of appraising the nature of the conduct and was physically incapable of declining participation in and communicating unwillingness to engage in the sexual contact.
The investigation was conducted by the Federal Bureau of Investigation, and Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
LaRoche was immediately turned over to the custody of the U.S. Marshal’s Service.
Louisville Internet Tobacco Product Retailer Guilty in Contraband Cigarette TradeRead the Press Release
– Agrees to forfeit more than $3.6 million dollars in assets including 10,824,192 assorted tobacco products
LOUISVILLE, Ky. – The former owner of Cigarettes Direct to You, pleaded guilty in U.S. District Court this week to a felony information charging him with running an illegal retail cigarette trafficking business, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the plea agreement, Israel Chavez, 48, of Louisville, Kentucky, conspired and agreed with Peter Bello, d/b/a, GT Northeast of Indiana/Kentucky, from January 5, 2005 through December 9, 2009, to buy and sell contraband cigarettes through internet websites and telephone call centers. By doing so, defendant Chavez, aided and abetted by Peter Bello, deprived the Kentucky State Department of Revenue of $2,090,571, by not paying taxes on cigarettes bought, sold, and shipped from locations within the Western District of Kentucky.
Chavez was the owner of Chavez, Inc., d/b/a, Cigarettes Direct to You (CD2U), a Kentucky Corporation located in Louisville, Kentucky. Chavez admitted in court to purchasing unstamped cigarettes, valued at $12,500,000 from Bello, for which no Kentucky tax had been paid, in order to significantly undercut the price charged for cigarettes by competing businesses which complied with state laws and paid the required taxes on cigarettes they held for sale. Further, Chavez admitted to knowing that fraudulent invoices had been created to disguise the nature of the cigarette transactions from the Kentucky Department of Revenue. This was accomplished through the creation of fraudulent invoices, which were transmitted by fax between Louisville, Kentucky, and St. Louis, Missouri, to make it appear that the cigarettes were purchased from a wholesaler in St. Louis – when, in fact, Chavez admitted to knowing that the unstamped cigarettes were from Kentucky, and that as a licensed wholesaler, Chavez was required to pay the Kentucky state tax.
A civil forfeiture suit, filed by the United States against Chavez, his ex-wife Pam Chavez, and their two companies Pam Chavez, Inc., and Chavez, Inc., were settled today in U. S. District Court, in the Western District of Kentucky. Israel Chavez and Pam Chavez agreed to forfeit to the United States, more than $3.6 million dollars in assets including approximately $3,214,000 in cash and deposit accounts and 10,824,192 tobacco products. Tax stamps valued at $108,000 will be returned to the Kentucky Department of Revenue.
In a separate, but related case, Bello, age 43, of Miami, was charged with conspiracy to commit wire fraud and is scheduled for trial before Chief Judge Joseph H. McKinley on June 3, 2013. According to the October 3, 2011 indictment, returned by a grand jury meeting in Louisville, Bello created fraudulent cigarette invoices to circumvent paying Kentucky state excise taxes.
At sentencing, Chavez faces a maximum of 20 years in prison, a $250,000,00 fine, and up to three years of supervised release. Sentencing is scheduled for August 7, 2013, before U.S. Magistrate Judge Dave Whalin.
This case is being prosecuted by Assistant United States Attorney Randy Ream, Special Assistant United States Attorney Micah R. Reyner. The restitution collection effort is being led by Assistant United States Attorney Amy Sullivan. The case is being investigated by the US Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Louisburg Man Senteced for Counterfiet ChargesRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court on Tuesday, before Senior United States District Judge James C. Fox, MATTHEW WILLIAMS, of Louisburg, NC, was sentenced to a 42 month term of imprisonment, followed by 3 years of supervised release, on charges of Conspiracy to Make Counterfeit Currency, in violation of Title 18, United States Code, Section 371, Possession of Counterfeit Currency, in violation of Title 18, United States Code, Section 472, and Manufacturing Counterfeit Currency, in violation Title 18, United States Code, Section 471. WILLIAMS was also ordered to pay a $2,000.00 fine.
In November 2012 WILLIAMS had pleaded guilty to an indictment that charged him with using a high quality scanner at his residence in Louisburg, NC, to manufacture and distribute counterfeit $5, $10, and $20 dollar bills in July of 2010. WILLIAMS sold counterfeit currency in exchange for genuine currency, usually at a price of $300.00 for $1,000.00 in counterfeit currency. WILLIAMS also instructed others on how to manufacture counterfeit currency, and he distributed counterfeit currency to other people, teaching them how and where to successfully pass counterfeit currency.
Investigation of this case was conducted by the United States Secret Service and the Franklin County Sheriff’s Office. Assistant United States Attorney Evan Rikhye represented the United States.
Long Valley Man Charged with Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Long Valley, South Dakota, man has been indicted by a federal grand jury for allegedly engaging in sexual acts with a minor near Martin, South Dakota, in 2010.
David Amiotte, age 49, was indicted by a federal grand jury on April 16, 2013, for Sexual Abuse of a Minor. Amiotte appeared before U.S. Magistrate Judge Veronica L. Duffy on April 19, 2013, and pleaded not guilty to the indictment. The maximum penalty upon conviction is 15 years of imprisonment and a $250,000 fine. The charge is merely an accusation, and Amiotte is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Amiotte was remanded to the custody of the U.S. Marshal. A trial date has been set for June 25, 2013.
Long Island Software Programmer Arrested for Hacking into Network of High-voltage Power ManufacturerRead the Press Release
A criminal complaint was unsealed today in federal court in the Eastern District of New York charging Michael Meneses with hacking into the computer network of a company that manufactures high-voltage power supplies, causing the company over $90,000 in damage. Meneses was arrested earlier today in Smithtown, Long Island, and his initial appearance is scheduled for this afternoon before United States Magistrate Judge Gary Brown at the United States Courthouse, 100 Federal Plaza, Central Islip, New York. The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York and George C. Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
According to the complaint, until January 2012, Meneses was employed at the victim company as a software programmer and system manager specializing in developing and customizing the software that the company used to run its business operations. A specialist in “enterprise resource planning” who had worked at the victim company for years, Meneses was one of two employees who were primarily responsible for ensuring that the software that drove the company’s manufacturing business - including its production planning, purchasing, and inventory control - operated efficiently. Meneses’s responsibilities gave him high-level access to the company’s computer network.
As alleged in the complaint, Meneses, who had voiced displeasure at having been passed over for promotions, tendered his resignation from the victim company in late December 2011, giving two weeks’ notice. After his network access was terminated, Meneses launched a three-week campaign to inflict damage on the company by gaining unauthorized access to its network and sabotaging the company’s business. Meneses employed various high-tech methods to hack into the victim company’s network and steal his former colleagues’ security credentials, including writing a program that captured user log-in names and passwords. Meneses then used the security credentials of at least one former colleague to remotely access the network via a virtual private network (VPN) from Meneses’s home and from a hotel located near his new employer, corrupting the network. Meneses’s efforts ranged from using a former colleague’s email account to discourage new applicants from taking Meneses’s position, to sending commands to alter the business calendar by one month, disrupting the company’s production and finance operations. The victim company suffered over $90,000 in damages as a result of Meneses’s intrusions.
“As the complaint alleges, the defendant engaged in a 21st Century campaign of cyber-vandalism and high-tech revenge, hacking into the computer network of his former employer to disrupt its operations, thereby causing tens of thousands of dollars in damage,” stated United States Attorney Lynch. “We will hold accountable any individual who victimizes others by exploiting computer network vulnerabilities.”
FBI Assistant Director in Charge Venizelos stated, “Bent on revenge, the defendant exploited his access and his technical know-how to sabotage his former employer. As alleged, he caused significant disruption and monetary damage. The FBI is committed to vigorous enforcement of laws governing computer intrusions.”
If convicted, the defendant faces a statutory maximum sentence of 10 years’ imprisonment, a $250,000 fine and restitution.
The government’s case is being prosecuted by Assistant United States Attorneys Cristina M. Posa and Charles N. Rose.
The Defendant:
MICHAEL MENESES
Age: 41
Residence: Smithtown, Long IslandLast Defendant Sentenced in Shooting Death of Brinks Guard at Calder CasinoRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Matthew Boyd, Chief, Miami Gardens Police Department, announce today’s sentencing of Reginald Mitchell, 28, of Miami Gardens, in connection with the August 21, 2011 shooting death of a Brinks guard at the Calder Casino and Race Course (Calder) in North Miami, Florida. U.S. District Judge James L. King sentenced Mitchell to 30 years in prison.
Four other defendants were sentenced previously for their participation in this crime: Vladimir Louissant was sentenced to life in prison; Uri Ammar was sentenced to life in prison; Victoria Barkley was sentenced to 10 years in prison; and Byron Kyler was sentenced to five years in prison. Louissant, Mitchell, Kyler, and Barkley pled guilty before trial. Ammar was convicted after trial on October 15, 2012.
According to documents filed with the court and evidence presented during trial, on August 21, 2011, Mitchell and Ammar conspired to rob a Brinks guard as he made a scheduled pick-up at Calder. Mitchell and Ammar both worked security at Calder, where Ammar was a Security Shift Manager. Mitchell recruited co-defendants Louissant, Barkley and Kyler. On the day of the murder, Mitchell drove Louissant to Calder in Kyler’s truck, which Kyler had falsely reported stolen.
According to the trial evidence, Ammar escorted the Brinks guard through the Calder facility and led him to an open area, where Louissant was waiting. As Ammar and the guard entered the open area, Louissant rushed at the guard, brandishing a firearm. When the guard drew his weapon, Louissant shot the guard and the two exchange gunfire. After shooting the guard, Louissant grabbed the Brinks money bag and fled to Kyler’s truck. Mitchell and Louissant then drove a short distance in Kyler’s truck, which they abandoned to be driven away from the scene by Barkley in another vehicle.
Mr. Ferrer commended the FBI and Miami Gardens Police Department for their work on this case. Mr. Ferrer also thanked the members of the FBI’s South Florida Violent Crimes and Fugitive Task Force. This case was prosecuted by Assistant U.S. Attorneys Michael Gilfarb and Seth Schlessinger.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Laguna Pueblo Man Sentenced to Twenty-Four Months in Federal Prison for Assault ConvictionRead the Press Release
ALBUQUERQUE – Laurence Kasero, 38, a member and resident of Laguna Pueblo, N.M., was sentenced this morning in federal court to 24 months in prison followed by three years of supervised release for his assault conviction. Kasero also was ordered to pay $29,177.18 in restitution to cover the victim’s medical expenses. Kasero’s sentence was announced by U.S. Attorney Kenneth J. Gonzales, DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services, and Police Chief Michelle F. Ray of the Pueblo of Laguna Police Department.
Kasero was indicted in Sept 2012, and charged with assault resulting in serious bodily injury. He has been in federal custody since his arrest on Sept. 28, 2012. On Jan. 31, 2013, Kasero pled guilty to the indictment. In entering his guilty plea, Kasero admitted assaulting his wife, a member of Acoma Pueblo, at the Route 66 Casino parking lot on Laguna Pueblo on March 20, 2011. Kasero admitted that, after he caused the victim to fall to the ground, he stomped on her ankles causing her to sustain serious bodily injury.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and the Pueblo of Laguna Police Department, and was prosecuted by Special Assistant U.S. Attorney David M. Adams.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project which is sponsored by the Justice Department’s Office on Violence Against Women, and seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Kidnapping Suspect Appears in Federal CourtRead the Press Release
Jackson, Miss. - Jesse Mae Pollard, 54, of Northport, Alabama, appeared before U.S. Magistrate Judge Keith Ball today pursuant to a criminal complaint charging her with kidnapping, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen.
The Court found that Pollard should be detained pending action of the federal grand jury, specifically finding that probable cause exists to show that Pollard committed the crime charged in the Complaint.
According to the Complaint, a black female entered East Kemper Elementary School in Scooba, Mississippi and took six (6) year old Jashayla Hopson out of school. Later that evening, video surveillance cameras at a hotel in Bessemer, Alabama indicate that Jesse Mae Pollard was at the hotel with Jashayla Hopson. Jashayla was held in the hotel room overnight and dropped off the next day on the side of the road in Enterprise, Mississippi.
The penalty for kidnapping is a minimum of 20 years and a maximum of life in prison.
The Federal Bureau of Investigation, along with Mississippi Bureau of Investigation, Mississippi Highway Patrol, Kemper County Sheriff's Office and Lauderdale County Sheriff's
Office conducted the investigation in this case.
The public is reminded that a Criminal Complaint is an accusation and a defendant is presumed innocent until proven guilty in a court of law.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Jason Washington Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on May 1, 2013, before Chief U.S. District Judge Dana L. Christensen, JASON WASHINGTON, a 29-year-old resident of Missoula, was sentenced to a term of:
Prison: 24 months
Special Assessment: $200
Forfeiture: $232,890.58
Supervised Release: 4 years
WASHINGTON was sentenced after a federal district court trial in which he was found guilty of conspiracy to manufacture and distribute marijuana and possession with the intent to distribute marijuana.
Assistant U.S. Attorney Tara J. Elliott prosecuted the case for the United States.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that he will likely serve all of the time imposed by the court. In the federal system, he does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Missoula High Intensity Drug Trafficking Area (HIDTA) Task Force.
Investor Sentenced in Manhattan Federal Court to Four Years in Prison for Engaging in Market Manipulation Schemes Involving Two Different StocksRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that DAVID BLECH was sentenced today in Manhattan federal court to four years in prison for securities fraud arising from schemes to manipulate the market for securities of Pluristem Therapeutics, Inc. (“Pluristem”) and Intellect Neurosciences, Inc. (“Intellect”) in 2007 and 2008. BLECH manipulated the markets for these securities by selling a portion of his holdings in those companies through deceptive and illegal means calculated to hide his selling activity from the market and minimize the downward pressure that his sales would otherwise have had on the value of the Pluristem and Intellect stock that he continued to hold. BLECH pled guilty to two counts of securities fraud in May 2012 before U.S. Magistrate Judge Frank Maas. He was sentenced today by U.S. District Judge Colleen McMahon.
According to the Information and statements made during BLECH’s guilty plea proceeding:
Between January 2007 and May 2007, BLECH acquired significant holdings of Pluristem stock, which was traded on the OTC Bulletin Board, in connection with a private placement offering by Pluristem. BLECH acquired this stock in numerous brokerage accounts that were nominally held in the names of other individuals and entities, but which he, in fact, controlled (the “Nominee Accounts”).
In May 2007, BLECH began to sell a portion of his Pluristem holdings. In order to conceal his sales – and thereby mitigate the damage that public awareness of his selling activity would have had on the value of his remaining shares – BLECH caused the various Nominee Accounts under his control to engage in conflicting activity, with some of the accounts selling Pluristem stock, and other accounts buying Pluristem stock, often on the same day. In total, between approximately May 15, 2007 and September 14, 2007, BLECH used the Nominee Accounts to sell approximately 150 million shares of Pluristem, while also using the Nominee Accounts to buy approximately 100 million shares of Pluristem. In so doing, BLECH was able to shed approximately 50 million shares of Pluristem through manipulative and fraudulent trading activity calculated to hide the true nature of his selling activity while indicating false levels of liquidity and demand in the market for Pluristem stock.
In February and March 2008, BLECH engaged in a similar scheme involving the market for shares of Intellect, which was traded on the OTC Bulletin Board. Between 2005 and February 2008, BLECH acquired significant holdings of Intellect stock. As with Pluristem, BLECH acquired this stock in the Nominee Accounts that were listed in the names of other individuals and entities, but which he, in fact, controlled.
In February and March 2008, BLECH sold a portion of his Intellect holdings. Again, in order to conceal his sales – and thereby mitigate the damage that public awareness of his selling activity would have had on the value of his remaining shares – BLECH caused the various Nominee Accounts under his control to engage in conflicting activity, with some of the accounts selling Intellect stock, and other accounts buying Intellect stock, often on the same day. In total, BLECH used the Nominee Accounts to sell approximately 2 million shares of Intellect, while also using the Nominee Accounts to buy approximately 1.6 million shares of Intellect. In so doing, BLECH was able to shed approximately 400,000 shares of Intellect through manipulative and fraudulent trading activity calculated to hide the true nature of his selling activity while indicating false levels of liquidity and demand in the market for that stock.
In addition to the prison term, Judge McMahon sentenced BLECH, 57, of New York, New York, to three years of supervised release. BLECH was also ordered to pay forfeiture in the amount of $1,338,000 and a $200 special assessment fee.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation. He also thanked the U.S. Securities and Exchange Commission for its assistance.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Michael A. Levy is in charge of the prosecution.
Home Builder Convicted of Embezzling from Hud Grant ProgramRead the Press Release
LAS VEGAS - - Following a 13-day jury trial, a home builder was convicted by a jury today of embezzlement crimes for converting, misappropriating and stealing from a federal housing grant program during 2004, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
William Aubrey, 69, of Mesquite, Nevada, was convicted of two counts of conversion of money and funds from a tribal organization, and is scheduled to be sentenced on Aug. 7, 2013, by U.S. District Judge Kent J. Dawson. Aubrey faces up to five years in prison and a $250,000 fine on each count.
“The Navajo Nation counted on the monies stolen by the defendant to provide housing for its members,” said U.S. Attorney Bogden. “This defendant stole from the tribe and from the American people, and used the monies to finance an extravagant lifestyle.”
According to the court records and the evidence introduced at trial, the Navajo Nation is a federally recognized sovereign Indian Tribe whose borders encompass a large portion of Arizona and extend into New Mexico and Utah. The Navajo Housing Authority was an official Navajo Nation entity authorized to receive and administer federal housing funds which were awarded annually by the U.S. Department of Housing and Urban Development (HUD). The Navajo Nation receives an average of $90 million from HUD annually in grant funds.
A Navajo Nation non-profit corporation, the Fort Defiance Housing Corporation, was responsible for the development of safe and affordable housing on the Navajo Nation lands. Fort Defiance was also a sub-grantee for the HUD grant funds.
Beginning in 1996 and continuing to 2004, Fort Defiance contracted with a private housing development company, Lodgebuilder, to develop the housing projects. Lodgebuilder is owned and operated by William Aubrey. Lodgebuilder and Aubrey managed several housing development projects for Fort Defiance from approximately 2000 to 2004. HUD funds, which were supposed to be used to pay vendors, subcontractors and expenses at the housing developments, were converted by Aubrey for his own personal use and used for gambling, and other personal expenses.
The case was investigated by the Office of Inspector General for U.S. Housing and Urban Development and prosecuted by Assistant U.S. Attorneys Timothy S. Vasquez and Kathryn C. Newman.Henderson Man Convicted for Retaliating Against A Federal WitnessRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced today that, WAYNEMON DEMOUNT BULLOCK, 25, of Henderson, North Carolina, was convicted by a federal jury of retaliating against a federal witness in violation of Title 18, United States Code, Section 1513(b)(1).
On October 5, 2012, BULLOCK participated in an assault on a federal witness who previously testified before Senior Judge James C. Fox. BULLOCK and a co-defendant approached the federal witness at a convenience store in Henderson, NC, accused the witness of being a “snitch” and proceeded to beat the witness. BULLOCK was recently released from the North Carolina Department of Corrections prior to assaulting the victim. BULLOCK faces a maximum of 20 years imprisonment at sentencing.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Henderson Police Department. Assistant United States Attorney, S. Katherine Burnette prosecuted the case.
Hartford Crack Dealer Sentenced to Nine Years in Federal PrisonRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, today announced that JAEQWAN SHEPPARD, also known as “Quanny” and “Q,” 20, of Hartford, was sentenced yesterday by United States District Judge Janet C. Hall in New Haven to 108 months of imprisonment, followed by five years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, this matter stems from “Operation Vinefield,” a joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force targeting narcotics trafficking and gang violence in Hartford’s North End. As a result of the nine-month investigation, 38 individuals were charged with various offenses related to the distribution of crack cocaine and the unlawful possession and dealing of firearms in and around Hartford.
SHEPPARD was identified as a member of the AVE street gang who operated a drug trafficking organization from his residence at 117-119 Enfield Street. Investigators made several controlled purchases of narcotics from SHEPPARD and subsequently obtained court authorization to intercept calls on two of his wireless phones.
In addition, investigators negotiated the purchase of a .38 caliber revolver from SHEPPARD in December 2011.
During the investigation, intercepted calls indicated that SHEPPARD’s associate, Kewan Woodson, may have been targeted by a rival group operating in the Garden Street area of Hartford. On January 10, 2012, four men were shot in front of SHEPPARD’s 117-119 Enfield Street residence. Images from fixed surveillance cameras revealed that two shooters arrived on the scene by foot and shot into a crowd with a rifle and a shotgun. Woodson was in the area before the shooting, but left moments before the gunmen arrived.
On January 4, 2013, SHEPPARD pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 28 grams or more of cocaine base (“crack cocaine”).
This matter has been investigated by the FBI’s Northern Connecticut Violent Crimes Task Force, the Connecticut State Police, the Hartford Police Department, and the Connecticut Department of Correction. The case is being prosecuted by Assistant United States Attorney Brian P. Leaming.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Guatemalan Man Pleads Guilty to Illegal Reentry After Deportation and Unlawful Possession of Ammunition by A Felon and Illegal AlienRead the Press Release
A Guatemalan man who illegally reentered the United States and unlawfully possessed ammunition pled guilty today in federal court in Cedar Rapids.
Armando Ramiro Garcia-Arenales, age 30, from Waterloo, Iowa, was convicted of one count of illegal reentry into the United States after deportation by an aggravated felon and one count of unlawful possession of ammunition by a felon and illegal alien.
The evidence showed that on March 1, 2013, Garcia-Arenales was arrested following a traffic stop by officers of the Waterloo Police Department. A search of Garcia-Arenales’ car uncovered numerous rounds of 9 mm ammunition. Garcia-Arenales had previously been convicted in 2005 in Clayton County, Iowa, of the felony offenses of delivery of cocaine and possession of cocaine with intent to deliver.
On March 13, 2013, officers from the Department of Homeland Security, Immigration and Customs Enforcement (ICE), determined that Garcia-Arenales had previously been deported in October 2008 and had not received permission to reenter the United States. Garcia-Arenales had been arrested in May 2008 in an immigration enforcement action at Agriprocessors in Postville, Iowa. He was convicted in the United States District Court for the Northern District of Iowa of use of a fraudulent alien registration card and ordered removed from the United States.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Garcia-Arenales remains in custody of the United States Marshal pending sentencing. Garcia-Arenales faces a possible maximum sentence of 20 years’ imprisonment on the illegal reentry charge and 10 years’ imprisonment on the ammunition charge, a $500,000 fine, $200 in special assessments, and 6 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Daniel C. Tvedt and was investigated by officers from the Waterloo Police Department, and the Department of Homeland Security, Immigration and Customs Enforcement.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-2008.
Former Treasure Valley Woman Sentenced for Theft from Financial InstitutionRead the Press Release
Defendant to Pay $100,272.32 in Restitution to Bank
BOISE – Season Heather Hymas, 27, of American Fork, Utah, was sentenced today in United States District Court in Boise to five years’ probation for misdemeanor theft from a financial institution, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Hymas to pay $100,272.32 in restitution to Wells Fargo Bank. She pleaded guilty to a superseding information on January 14, 2013.
According to the plea agreement, on December 8, 2006, Season Hymas obtained a residential loan based on false statements in a loan application. The false statements included misrepresentations concerning her employment, monthly income, and the account balance of funds held in a bank account.
In December 2011, a federal grand jury returned a superseding indictment charging Season Hymas and her husband, Travis Richard Hymas, 29, with five counts of wire fraud. On June 22, 2012,Travis Hymas was found guilty at trial of all five counts. In October 2012, he was sentenced to 24 months in prison for wire fraud and ordered to pay $241,307.04 in restitution.
The case is part of the investigation of mortgage fraud activity related to Crestwood Homes, which involved multiple defendants who bought and sold real estate in order to "flip" it, or gain profits from the sales. Crestwood Homes was a residential builder in the Treasure Valley that filed for bankruptcy in July 2008. After doing so, it was discovered that individuals associated with Crestwood were involved in submitting fraudulent residential loan applications to lenders. The financial institutions and mortgage lenders incurred substantial losses on the loan transactions.
The case was investigated by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation, with assistance provided by the Office of the United States Trustee and the Idaho Department of Insurance. The case is being prosecuted by the U.S. Attorney's Office for the District of Idaho and the State of Idaho, Office of the Attorney General.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Former Monroe City Councilman Robert "Red" Stevens Pleads GuiltyRead the Press Release
Shreveport, La.: United States Attorney Stephanie A. Finley announced that Robert E. “Red” Stevens, 61, former elected member of the City Council of Monroe, Louisiana, pleaded guilty today, to accepting cash bribe payments from an FBI cooperating witness in exchange for help with matters pending before the City Council. The guilty plea was entered in federal court in Shreveport before United States District Judge Donald E. Walter.
Stevens was indicted in 2010 and charged with violating the Racketeer Influenced and Corrupt Organizations Act, more commonly known as RICO, and the Hobbs Act, which involves extortion by a public official. During today’s court appearance, Stevens pleaded guilty to the RICO violation; pursuant to a plea agreement with the government, the Hobbs Act count will be dismissed after sentencing.
Stevens admitted in court filings that on three separate occasions in 2008 and 2009, he accepted cash bribe payments from a Monroe businessman who was working as a cooperating witness under the direction of the FBI. The payments were in exchange for Stevens’ assistance with matters pending before the City Council.
Stevens faces a maximum sentence of 20 years in prison, a $250,000 fine, or both. Sentencing in federal court is governed by the advisory United States Sentencing Guidelines and the discretion of the sentencing judge. Sentencing is scheduled for September 26, 2013.
The case was investigated by the FBI-Monroe Resident Agenc and is being prosecuted by First Assistant U.S. Attorney Alexander C. Van Hook and Counsel to the U.S. Attorney William J. Flanagan.
Former Highland Park Police Officer Pleads Guilty ToExtortion Conspiracy to Protect A Cocaine ShipmentRead the Press Release
A Highland Park Police officer pleaded guilty today to conspiring with three other police officers to commit extortion and protect a shipment of cocaine, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by FBI Special Agent in Charge Robert D. Foley, III.
During a hearing before U.S. District Judge Avern Cohn, Shawn Williams, 33, of Detroit, Michigan, admitted that in late 2012 and early 2013, he agreed with three other Highland Park police officers to take money in exchange for protecting a shipment of cocaine. Williams admitted that on January 23, 2013, he protected two cars containing what he believed to be a total of four kilograms of cocaine. Williams brought his police badge and gun to protect the shipment. Two other Highland Park police officers drove the cars containing what they believed to be cocaine. Later, Williams accepted $1,000 in cash from an FBI informant for his work in delivering and protecting the drug shipment.
United States Attorney McQuade said, "Police officers who take bribes have no place in law enforcement. They will be prosecuted for violating their duties to serve the public."
FBI Special Agent in Charge Foley stated, "Police officers who swear an oath to serve and protect are held to the highest standards of ethics and integrity. The FBI is committed to ensuring those standards are maintained, and in cases of abuse, will pursue and prosecute those responsible."Based on his guilty plea and felony conviction for conspiring to commit extortion, Clayton is facing a maximum of twenty years in prison and a fine of up to $250,000.
The case was investigated by agents of the FBI. It is being prosecuted by Assistant United States Attorney David A. Gardey.Former Hedge Fund Manager, Todd Newman, Sentenced in Manhattan Federal Court to 54 Months in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that TODD NEWMAN, a former portfolio manager at Diamondback Capital Management, LLC (“Diamondback”), was sentenced in Manhattan federal court to 54 months in prison for crimes stemming from his involvement in a multi-million dollar insider trading scheme. NEWMAN and co-defendant Anthony Chiasson, who was a former portfolio manager and co-founder of Level Global Investors, LP (“Level Global”), were convicted of various securities fraud charges on December 17, 2012, following a six-week jury trial. At trial, NEWMAN was convicted of one count of conspiracy to commit securities fraud, and four counts of securities fraud. He was sentenced today by U.S. District Judge Richard J. Sullivan.
Manhattan U.S. Attorney Preet Bharara said: “With today’s sentence, Todd Newman becomes the first member of this corrupt circle of friends to be punished for his conduct. Efforts to cheat the market by gaining an illegal edge ultimately lead to a loss of one’s liberty, as it did for Todd Newman today.”
According to the Superseding Indictment, other court documents, statements made in court, and the evidence presented at trial:
NEWMAN was part of a criminal club of portfolio managers and analysts who obtained material nonpublic information (“Inside Information”), directly and indirectly, from employees who worked at public companies. Specifically, NEWMAN’s research analyst, Jesse Tortora, together with research analysts at other investment firms – including Sam Adondakis, Jon Horvath and Danny Kuo – shared Inside Information with each other which the analysts then provided to their portfolio managers.
For example, in 2008 and 2009, NEWMAN received Inside Information from Tortora related to Dell’s quarterly earnings, which Tortora had received from Sandy Goyal, an analyst who worked at another firm. Goyal had a source inside Dell’s investor relations department who provided numerous updates on Dell’s earnings numbers in advance of Dell’s earnings announcements for multiple quarters in a row. NEWMAN authorized payments to Goyal through a sham research consulting arrangement between Goyal’s wife and NEWMAN’s firm, Diamondback Capital. In fact, Goyal’s wife never provided any research consulting services, but Diamondback nonetheless paid her $175,000 in 2008 and 2009. NEWMAN traded on the Dell Inside Information in advance of the May 2008 and August 2008 quarterly earnings announcements, and earned nearly $4 million in illegal profits for his firm. Tortora also shared the Dell Inside Information with the other analysts, whose portfolio managers executed trades on that same Dell Inside information. Additionally, after Chiasson received the Dell Inside Information from his analyst Sam Adondakis, he executed or caused to be executed trades based on the Inside Information which resulted in more than $57 million in illegal profits for Level Global.
Similarly, in multiple fiscal quarters, NEWMAN obtained inside information concerning NVIDIA Corporation’s earnings from analyst Danny Kuo, who worked at an investment firm in California. Among other things, email communications from Kuo that were forwarded to NEWMAN via Tortora in advance of the quarterly earnings announcements stated that the NVIDIA earnings numbers were obtained from “an accounting manager” at the company. NEWMAN’s trading in NVIDIA resulted in approximately $73,000 in illegal trading profits for the benefit of Diamondback Capital. The NVIDIA Inside Information was similarly received by co-defendant Chiasson, who executed and caused to be executed trades based on the Inside Information, resulting in approximately $10 million in illegal profits for Level Global.
In addition to the prison term, Judge Sullivan sentenced NEWMAN, 48, of Needham, Massachusetts, to one year of supervised release. NEWMAN was also ordered to forfeit $737,724 and to pay a $1 million fine.
At trial, Chiasson, 39, of New York, New York, was convicted of one count of conspiracy to commit securities fraud, and five counts of securities fraud. He will be sentenced by Judge Sullivan on May 13, 2013 at 10:00 a.m.
Horvath, 43, and Kuo, 37, each pled guilty to one count of conspiracy to commit securities fraud and two counts of securities fraud in September 2012 and April 2012, respectively. Tortora, 35, Adondakis, 41, and Goyal, 40, each pled guilty to one count of conspiracy to commit securities fraud and one count of securities fraud in May 2011, April 2011, and June 2011, respectively. These defendants await sentencing.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation. He also thanked the U.S. Securities and Exchange Commission. He also noted that the investigation is continuing.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
Assistant U.S. Attorneys Antonia M. Apps, Richard C. Tarlowe, and John T. Zach are in charge of the prosecution.
Former Campaign Treasurer and Fundraiser Found Guilty in Manhattan Federal Court of Campaign Finance FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JIA HOU, a/k/a “Jenny Hou,” and XING WU PAN, a/k/a “Oliver Pan,” were found guilty today in Manhattan federal court of fraud in connection with a fraudulent scheme that involved the use of “straw donors” to funnel large, illegal campaign contributions to the campaign of a candidate (the “Candidate”) for Citywide elective office in 2013 (the “Campaign”). The straw donor scheme was fraudulent in two primary ways. First, it allowed for more money to be directly given to the Candidate’s campaign by evading the maximum individual contribution limit. Second, by fraudulently inflating the amount of money directly given by donors to the campaign, it correspondingly entitled the campaign to claim greater matching funds from the City of New York through the City’s matching campaign funds program. The jury found that HOU, the former Campaign treasurer, attempted to commit fraud, obstructed justice, and made false statements in connection with the straw donor scheme. The jury found that PAN, a fundraiser and contribution bundler for the Campaign, conspired and attempted to commit fraud in connection with the straw donor scheme. They were convicted after a three-week trial before U.S. District Judge Richard J. Sullivan.
Manhattan U.S. Attorney Preet Bharara said: “As the jury found, Jia Hou and Oliver Pan stuck a knife into the heart of New York City’s campaign finance law by violating the prohibition against illegal campaign contributions, all to corruptly advantage the campaign of a candidate for city-wide office. Cases like this give the people of New York yet another reason to be troubled by the electoral process, and they have a right to demand fair, open, and honest elections untainted by cynical subversion of campaign finance laws. With these convictions, it is our hope that some measure of the public’s confidence can be restored. We will continue our efforts to stamp out public corruption wherever we find it. We thank the jury for their time and service, and the outstanding prosecutors who so ably tried this case.”
According to the Complaint and the Indictment filed in Manhattan federal court and the evidence presented at trial:
HOU and PAN participated in a scheme to defraud New York City by using straw donors to funnel multiple illegal campaign contributions to the Candidate’s 2013 campaign for Citywide elective office. One object of the scheme was to increase the amount of matching campaign funds the Campaign would receive from the City. New York City law mandates an individual contribution limit of $4,950. On various occasions, certain individuals – including an individual who was actually an undercover FBI agent (the “U/C”) – who wanted to make donations in excess of that limit arranged for multiple Straw Donors to make a series of contributions to the Campaign that were under the $4,950 limit. The Straw Donors were then reimbursed for their contributions. On behalf of each Straw Donor, a campaign contribution form was filled out containing, among other things, the straw donor’s name, address, employment information, the amount donated to the Candidate, and the Straw Donor’s purported signature acknowledging that the Straw Donor was not being reimbursed in any manner for making the campaign contribution. The City would rely upon the information contained in these fraudulent contribution forms, among other things, in order to determine whether to release matching campaign funds to the Candidate’s 2013 campaign on the basis of these contributions.
HOU served as the Candidate’s treasurer for the 2013 election cycle and was responsible for all financial disclosures related to the 2013 Campaign. She was also responsible for accounting for every donation made to the Campaign and for ensuring that all donations by individuals to the Campaign were within the maximum allowed by New York City. HOU and the Candidate were the only individuals authorized to submit disclosure statements on behalf of the Campaign. In addition, HOU was responsible for disclosing to the New York City Campaign Finance Board (“NYCCFB”) the identities of “intermediaries” or “bundlers” involved in soliciting and receiving donations for the Campaign. NYCCFB records show that the Campaign did not disclose any “bundlers” or “intermediaries” for the 2013 New York City election cycle until January 17, 2012, despite the fact that the Campaign had been raising funds for the 2013 New York City election cycle since at least in or about December 2009. On January 17, 2012, the Campaign disclosed a list of approximately 59 intermediaries to the NYCCFB, but that disclosure did not include multiple individuals who were intermediaries. Further, the disclosure was not made until a grand jury subpoena seeking information about intermediaries was served on the Campaign in December 2011.
In addition, the U/C and PAN had multiple conversations concerning the U/C making a large campaign contribution to the Candidate’s 2013 Campaign that would exceed the maximum allowable contribution of $4,950 for a Citywide elective office during the 2013 election cycle. During these conversations with the U/C, which occurred over the telephone and in person, PAN discussed facilitating this contribution through the use of Straw Donors who would make contributions to the Candidate’s 2013 campaign in their own names and then be reimbursed with cash that PAN received from the U/C. Subsequently, the U/C provided PAN with $16,000 in cash.
The Straw Donors filled out campaign contribution forms that contained, among other things, their names, home addresses, employment information, the amount they each donated to the Candidate, and whether it was by check or credit card. The Straw Donors then signed the contribution forms acknowledging, among other things, that the campaign contributions were in their names, from their own funds, and that they were not being reimbursed in any manner for making the campaign contributions. PAN, using the money received from the U/C, then reimbursed the Straw Donors for their campaign contributions. PAN also provided to the U/C copies of the completed contribution forms for 18 Straw Donors, including one for PAN himself, that were submitted to the Candidate’s 2013 campaign.
In furtherance of the scheme, HOU instructed a campaign volunteer how to imitate the handwriting of campaign donors on donor contribution forms required by the NYCCFB. She also discussed with that campaign volunteer ways to conceal information about intermediaries from the NYCCFB. HOU also offered to reimburse an individual for a donation to the Campaign. HOU worked closely with individuals who served as intermediaries in connection with multiple events where straw donors were reimbursed for their contributions, and nevertheless failed to disclose to the NYCCFB the involvement of these intermediaries in the Campaign.
Finally, in response to the Government’s subpoena for documents relevant to the straw donor scheme, HOU obstructed the Government’s investigation by withholding e-mails and electronic chats showing her knowledge of, and participation in, the scheme. In one of those electronic chats, Hou explicitly offered to reimburse a friend for making a contribution to the campaign. In addition, when questioned by Government officials about her involvement in the scheme and her compliance with the Government’s subpoena, Hou made multiple false statements regarding the disclosure of intermediaries who reimbursed straw donors and her production of documents showing her participation in the scheme.
HOU, 26, of Queens, New York, was convicted of one count of attempted wire fraud, which carries a maximum sentence of 20 years in prison, and a maximum fine of $250,000 or twice the gross gain or loss from the offense. She was also convicted of one count of obstruction of justice and making false statements to the FBI. These counts carry a maximum sentence of five and 20 years, respectively. HOU was acquitted of one count of conspiracy to commit wire fraud.
PAN, 47, of Hudson County, New Jersey, was convicted of one count of conspiracy to commit wire fraud, and one count of attempted wire fraud, both of which carry a maximum sentence of 20 years in prison, and a maximum fine of $250,000, or twice the gross gain or loss from the offense. HOU is scheduled to be sentenced by Judge Sullivan on September 20, 2013 at 3:30 p.m. PAN is scheduled to be sentenced by Judge Sullivan on September 20, 2013 at 2:00 p.m.
Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation and expressed appreciation to the New York City Department of Investigation for its contribution to this ongoing investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Brian A. Jacobs and Justin Anderson are in charge of the prosecution.
U.S. v. Xing Wu Pan and Jia Hou S1 Indictment
Forest Man Pleads Guilty to Drug ChargeRead the Press Release
Jackson, Miss - Herbert Jerome Townsend, 31, of Forest, Mississippi, pled guilty in U.S. District Court today to conspiracy to possess with intent to distribute methamphetamine (“ice”), U.S. Attorney Gregory K. Davis announced. Townsend will be sentenced by U.S. District Judge Carlton W. Reeves on July 11, 2013 and faces a maximum punishment of life in prison and a $10 million fine.
This case was the result of an extensive investigation, dubbed “Operation Brusha” targeting illegal narcotics distribution in Scott County, Mississippi. The investigation was conducted by the Mississippi Bureau of Narcotics, Bureau of Alcohol, Tobacco Firearms and Explosives and Homeland Security Investigations with assistance from the Forest Police Department, Scott County Sheriff’s Department, Mississippi Highway Patrol and Mississippi Bureau of Investigation. Assistant U.S. Attorney Erin O. Chalk is prosecuting the case.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Five Indicted in Large-scale Synthetic Drug ConspiracyRead the Press Release
Indictment Alleges That Defendants Manufactured and Distributed “Designer” Drugs
Sold as Potpourri or Plant FoodFour defendants were arrested yesterday and another was already in custody after a federal grand jury in Nashville, Tennessee returned a 10-count indictment charging five defendants with various counts of conspiring to manufacture, distribute, and possess with intent to distribute controlled substance analogues, also known as “synthetic” or “designer” drugs, which were intended for human consumption; conspiracy to violate drug labeling and manufacturing laws; possession of firearms in furtherance of a drug trafficking crime; possession of a firearm by a convicted felon; using a place for the purpose of distributing controlled substance analogues for human consumption; conspiring to launder money; obstruction of justice; subornation of perjury; and perjury. The indictment was announced by David Rivera, Acting U.S. Attorney for the Middle District of Tennessee and Steve Anderson, Chief of the Metropolitan Nashville Police Department.
The indictment charged the following defendants:Eric Ronnell Alexander, 26, of Antioch, Tennessee; Barry Gregory Vail, 27, of Antioch, Tennessee; Tabatha Lynn Baird, 20, of Antioch, Tennessee; Johnathan Landon Smith, a/k/a “London,” 29, of Spring Hill, Tennessee; and
Candice Ruth White, 36, of Nashville, Tennessee.According to the indictment, the defendants established and ran companies called Faded Botanicals, New Age Wholesale, and Toke-N-Roll, that were fronts for a large-scale conspiracy to manufacture and sell synthetic drugs to wholesale and retail customers throughout the United States. The “designer” drugs carried names like “Molly’s Plant Food,” “K4 XXX Gang,” “Bang Ban Russian Roulette,” and “El Cheapo” and were sold at local retailers in Tennessee and across the country, including gas stations, convenience stores, adult book stores, and smoke shops. The indictment alleges that Alexander and the other defendants themselves operated two smoke shops in the Nashville area called “Toke-N-Roll,” where they sold the synthetic drug products along with rolling papers, vaporizers, and bongs. The products allegedly contained controlled substance analogues, which are similar to Schedule I controlled substances in chemical composition and their effect on the body.
“Criminals who sell illegal drugs cannot evade justice by simply changing a molecule in the compounding structure of the substance,” said Acting U.S. Attorney David Rivera.” Those who would attempt to hide behind the analogue of an illegal substance and produce and sell such dangerous and adulterated substances to the public will face the consequences of federal prosecution.”
“Criminal investigations such as this save lives and protect families,” said Metro Nashville Police Chief Steve Anderson. “These products have been found to be inherently dangerous and seemingly packaged to appeal to teenagers and young adults. The truth is, the colorful packets contain chemicals that can cause very serious side effects and even death.”
The indictment alleges that the conspiracy lasted from at least July 2010 to October 5, 2012, and that the defendants manufactured synthetic drug products themselves at an unsanitary warehouse in Kentucky. According to the indictment, the defendants made the synthetic drugs products using chemicals they had purchased over the internet, cooking them on a dirty hot plate and dissolving them in alcohol before pouring them and a green leafy substance into a rusty and corroded industrial mixer meant to mix concrete; after the chemicals and leafy substance were mixed, the resulting substance was spread out in numerous aluminum foil roasting pans that were left to dry on the dirty floor of the warehouse. At that point, the indictment alleges, the green leafy substance, which was then coated with the synthetic drugs, was packed into foil packs and plastic cylinders for sale. All of the defendants are also charged with conspiracy to commit money laundering for using the illegal proceeds of the sale of these synthetic drugs to further the conspiracy and engage in monetary transactions greater than $10,000.The indictment also alleges that the defendants took multiple steps to conceal the fact that they were selling the synthetic drugs for human consumption. For example, the labels the defendants placed on the designer drug products stated that they were not for “human consumption,” and claimed instead to be “potpourri,” “herbal enhancers,” or “plant food,” although the defendants knew that these claims were not true. Similarly, the indictment alleges that employees of Toke-N-Roll were instructed not to sell the designer drugs at the same time as rolling papers, bongs, or other items meant for smoking them. Instead, the employees were told to ring up the customer’s purchase in two separate transactions.
In addition, according to the indictment, defendants Alexander, Vail, and Baird attempted to obstruct the investigation by federal investigators and a federal grand jury. Specifically, the indictment alleges that Alexander and Vail suborned and procured Baird to commit perjury, and that Baird perjured herself in the grand jury when she claimed to never have been present at the warehouse in Kentucky where defendants manufactured the synthetic drug products.
If convicted of the drug conspiracy, defendants face a maximum sentence of twenty years in prison and a $1,000,000 fine. They also face a maximum of twenty years in prison and a $500,000 fine on the money laundering charges. If convicted of the conspiracy to introduce adulterated and misbranded drugs, the defendants face a maximum sentence of five years in prison and a $250,000 fine. On the obstructed-related allegations, defendants Alexander, Vail, and Baird face a maximum sentence, if convicted, of five years in prison and a $250,000 fine for the counts charging perjury and suborning perjury, respectfully, and a maximum sentence of twenty years in prison and a $250,000 fine on the counts alleging obstruction of justice.
The indictment also contains charges related to the unlawful possession of a firearm by Alexander, who is a convicted felon, and his possession of a firearm in furtherance of the drug trafficking conspiracy. On the latter charge, Count 3 of the indictment, Alexander faces a maximum sentence of life in prison and a $250,000 fine, while the other charge carries a maximum sentence of 10 years in prison and a $250,000 fine.The indictment follows an investigation of more than two years by the Drug Enforcement Administration, the Metropolitan Nashville Police Department, and the Office of the Tennessee Attorney General. Assistant United States Attorney Alex Little is representing the government.
An indictment is merely an accusation and is not evidence of guilt. Defendants are presumed innocent unless and until proven guilty in a court of law.
Ex-loan Officer Sentenced to 12½ Years in Prison for Mortage Fraud Scheme Involving Dozens of South Side PropertiesRead the Press Release
CHICAGO — A former loan officer was sentenced today to more than 12½ years in federal prison for engaging in a mortgage fraud scheme involving 65 real estate transactions with properties located mostly in economically-depressed neighborhoods on the city’s south side which netted him personally more than $700,000. The defendant, FRED HAYWOOD, worked as a loan officer or processor for several different mortgage brokerages during the scheme, which occurred between 2001 and 2007.
Haywood, 42, of Chicago, was sentenced to 151 months in prison and ordered to pay more than $1.4 million in restitution to various lenders by U.S. District Judge Ronald Guzman. Haywood pleaded guilty in April 2012 to wire fraud. Haywood was the last to be sentenced among six defendants who were charged in 2008 and 2009 and subsequently pleaded guilty, and his was the longest term of incarceration.
Haywood’s fraudulent acts included qualifying borrowers for loans based on false information submitted to lenders, including false information about their income, assets, employment, intention to occupy the property, and source of down payment. Court records also established that he continued his fraudulent conduct after he was indicted and while on pretrial release.
During the scheme, Haywood and his co-schemers recruited buyers with good credit to purchase properties, knowing at the time that these buyers did not have sufficient income to qualify for mortgages, had no intention of actually living in the properties they were purchasing, and had no intention of fulfilling any long-term payment obligations on the loans they obtained. Instead, he and others recruited the buyers by promising to pay them for acting as nominees and for putting the properties in their names. Haywood knew that the false statements and documents submitted to lenders were material to their decisions to make loans.
The sentence was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Pete Zegarac, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.
The government was represented by Assistant U.S. Attorney Jason Yonan.
Eight Charged Following Discovery of More Than 1700 Marijuana PlantsRead the Press Release
HOUSTON – Seven area men and one woman are in custody on charges of conspiracy and possession with intent to distribute more than 1,000 marijuana plants, United States Attorney Kenneth Magidson announced today.
Dang Hai Nguyen, 47, Carry Le, 38, Hien The Nguyen, 26, Lam Thanh Ho, 43, Son Kim Le, 39, Tuan Anh Le, 24, and Tuan Nguyen, 44, all of Houston, and Minh Quang Nguyen, 46, of Katy, were arrested this morning during the execution of search warrants at eight residential properties in the greater Houston area. All are expected to appear before U.S. Magistrate Judge George C. Hanks Jr. on Friday, May 3, 2013, at which time the United States is expected to request they remain in custody pending further criminal proceedings.
Six of the properties were allegedly active hydroponic grow houses that contained marijuana plants in various stages of growth. All eight properties are in Harris County. The searches resulted in the seizure of at least 180 and up to more than 450 marijuana plants in each of the six grow houses, totaling approximately 1754 plants.
A conviction for conspiracy to possess and possession with the intent to distribute marijuana plants carries a possible punishment of a minimum of 10 years and up to life in federal prison as well as a $10 million fine.
The charges are the result of an investigation conducted by the Texas Department of Public Safety, the Harris and Ft. Bend County Sheriffs’ Departments and the Drug Enforcement Administration.
Assistant United States Attorney Michael Kusin is prosecuting the case.
Defendants are presumed innocent unless and until convicted through due process of law.Eagle Butte Man Pleads Guilty to Third Degree BurglaryRead the Press Release
United States Attorney Brendan V. Johnson announced that Jake Morrison, age 31, of Eagle Butte, South Dakota, appeared before US District Judge Roberto A. Lange on April 30, 2013, and pled guilty to the indictment that charged him with Third Degree Burglary. The maximum penalty upon conviction is 10 years in custody, a $250,000 fine, or both; 3 years of supervised release; and $100 assessment to the Federal Crime Victims Fund.
The conviction is the result of a January 6, 2013, late night break-in at a downtown business in Timber Lake, South Dakota.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. The case is being prosecuted by Assistant US Attorney Mikal Hanson.
A presentence investigation was ordered, and a sentencing date was set for July 22, 2013. The defendant was remanded to the custody of the US Marshal’s Service pending sentencing.
Dunmore Tax Return Preparer Pleads Guilty to Tax EvasionRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dominick J. Muracco, Jr., age 60, of Scranton, Pennsylvania, pled guilty in federal court in Wilkes-Barre before Senior U.S. District Judge A. Richard Caputo to attempted income tax evasion regarding his 2008 federal income tax return. Sentencing was scheduled for August 15, 2013.
According to United States Attorney Peter J. Smith, Muracco previously operated a business in Dunmore, Pennsylvania known as Automated Payroll and Tax Service (“APTS”) which prepared tax returns and represented taxpayers before the IRS. Muracco admitted today that he filed a false income tax return for 2008 which omitted over $125,000 in taxable income and over $31,000 in tax. Muracco also admitted that for the years 2006, 2007, 2008 and 2009, he under-reported his income by over $276,000 and his tax by over $63,000. The unreported income came primarily from fees that Muracco charged APTS clients for tax program services.
The case was investigated by the Criminal Investigation Division of the IRS and is assigned to Senior Litigation Counsel Bruce Brandler for prosecution.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is five years’ imprisonment, a term of supervised release following imprisonment, restitution and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Dearborn Heights Man Pleads Guilty to Bankruptcy Fraudand Money LaunderingRead the Press Release
Adnan Hassan Tageddine, age 42, of Dearborn Heights, Michigan, pleaded guilty to three counts of Bankruptcy Fraud and one count of Money Laundering, United States Attorney Barbara L. McQuade announced today. Ms. McQuade was joined in the announcement by Special Agent in Charge Erick Martinez, Internal Revenue Service Criminal Investigation Division.
In August of 2009, Tageddine filed bankruptcy in Detroit, Michigan. The bankruptcy filing, which he declared under penalty of perjury, included a schedule of all of his personal property that he knew to be false. He failed to identify multiple luxury assets he owned which included luxury cars, jewelry and cash.
Special Agent in Charge Erick Martinez commended the work done by the IRS criminal investigator who unraveled Tageddine's scheme, adding "Hiding assets from the bankruptcy court is a very serious offense and is extremely costly to the American public."A sentencing date was set for August 12, 2013 at 3:00 pm before U.S. District Judge Arthur Tarnow.
The maximum penalty for Bankruptcy Fraud Concealment of Assets is imprisonment of not more than five years and/or a $250,000 fine per each count and the maximum penalty for Laundering of Monetary Instruments is not more than 20 years and/or a $500,000 fine.
The investigation was prosecuted by Assistant U.S. Attorneys Richard Roble and Ross MacKenzie.