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1 May 2013
Idaho Prison Inmate Indicted by Federal Grand Jury for Mail FraudRead the Press Release
BOISE – Mark Anthony Brown, 53, an inmate at the Idaho Correctional Center in Orofino, was arraigned in United States District Court today on 12 counts of mail fraud, U.S. Attorney Wendy J. Olson announced. Brown was indicted by a federal grand jury on March 12, 2013. A trial is set for June 3, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The indictment alleges that from September 2007 to February 28, 2013, Brown devised a scheme to defraud by submitting claim forms in which he falsely represented that he was a claimant, or member, of various class action lawsuits, bankruptcy settlements and other large-scale lawsuits. The indictment alleges that Brown mailed the claim forms to administrators of the settlements in order to receive settlement proceeds. Brown allegedly deposited the proceeds he received into his Idaho Department of Correction trust account and into several different investment accounts, through the use of the mail. The government is seeking forfeiture of approximately $64,000 in currency, or substitute assets, which Brown is alleged to have received from the scheme to defraud.
Each count of mail fraud is punishable by up to 20 years in federal prison, a maximum fine of $250,000, and up to three years of supervised release.
The case is being investigated by the United States Postal Inspection Service with the cooperation of the Idaho Department of Correction.
An indictment is only an allegation of criminal conduct and is not evidence of guilt. A person is presumed innocent until and unless proven guilty beyond a reasonable doubt in a court of law.
Hartford Man Sentenced to More Than Six Years in Federal Prison for Distributing CrackRead the Press Release
The United States Attorney for the District of Connecticut today announced that JOVAN SMITH, also known as “Hood,” 35, of Hartford, was sentenced yesterday by Senior United States District Judge Ellen Bree Burns in New Haven to 78 months of imprisonment, followed by five years of supervised release, for distributing crack cocaine.
This matter stems from “Operation Northern Strike,” a 15-month joint law enforcement investigation targeting members and associates of geographically-based street gangs engaging in criminal activity in Hartford’s Upper Albany and Northeast neighborhoods. The investigation included the use of court-authorized wiretaps on multiple telephones, controlled purchases of narcotics and physical surveillance. As a result of the investigation, 35 individuals were charged with various federal drug and firearms violations.
According to court documents and statements made in court, one of the initial targets of the investigation was Joseph Smith, also known as “Nitty.” Intercepted calls revealed that Joseph Smith regularly sold JOVAN SMITH eighth-ounce quantities (“8-balls”) of crack cocaine. JOVAN SMITH then sold the crack in smaller quantities in the area of Center and Chestnut Streets in Hartford.
On June 7, 2012, JOVAN SMITH pleaded guilty to one count of conspiracy to possess with intent to distribute 28 or more grams of cocaine base (“crack cocaine”).
JOVAN SMITH’s criminal history includes multiple narcotics convictions, multiple assault convictions, and convictions for violation of a protective order and threatening.
On June 29, 2011, Joseph Smith pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 280 grams or more of cocaine base. On September 27, 2012, he was sentenced to 146 months of imprisonment.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Gang Task Force – which includes representatives of the FBI, Connecticut State Police and Hartford Police Department – and the Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorneys Brian P. Leaming and Geoffrey M. Stone.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Hartford Man Sentenced to Five Years in Federal Prison for Distributing CrackRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that BRANDON BAILEY-SANTOUSE, also known as “Bo,” 27, of Hartford, was sentenced today by United States District Judge Robert N. Chatigny in Hartford to 60 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, law enforcement identified Errol Santouse, BAILEY-SANTOUSE’s cousin, as a significant distributor of crack cocaine in the Willimantic area. On five occasions in April and May 2012, Errol Santouse sold crack in quantities ranging from 3.5 grams to 42 grams to a cooperating witness and an undercover ATF agent. The investigation revealed that BAILEY-SANTOUSE supplied Santouse with the crack cocaine for some of these transactions.
BAILEY-SANTOUSE was arrested on June 28, 2012. On that date, he possessed approximately 50 grams of crack cocaine and a search of his residence revealed a scale with crack residue and narcotics packaging materials.
On December 13, 2012, SANTOUSE pleaded guilty to one count of possession with intent to distribute and distribution of 28 grams or more of cocaine base (“crack cocaine”).
Errol Santouse pleaded guilty to the same charge and, on November 27, 2012, he was sentenced to 60 months of imprisonment.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Hartford Police Department and the Willimantic Police Department. The case is being prosecuted by Assistant United States Attorney Geoffrey M. Stone.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Harrisburg Ambulance Company Pleads Guilty to Submitting False Statements to MedicareRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Harrisburg-based ambulance company has pleaded guilty to multiple False Statement charges related to Medicare fraud.
Advantage Medical Transport, Inc, headquartered at 733 Fire House Lane, Harrisburg, pleaded guilty before U.S. District Court Judge Christopher C. Conner today to 14 Counts of False Statements in Health Care Matters, 18 USC 1035. Each Count is punishable by up to as much as a $500,000 fine. Serge Sivchuk, age 27, the sole owner of Advantage, appeared in court and entered the guilty pleas on behalf of the Corporation. The Government estimated the total loss to Medicare as a result of the fraud was approximately $740,000.
According to U.S. Attorney Peter J. Smith, Sivchuk and Advantage were indicted in January 2012 on multiple False Statement and Medicare Fraud charges. The Indictment alleged that between January of 2009 and June of 2011 Sivchuk and Advantage perpetrated a scheme to defraud Medicare by submitting hundreds of claims for the nonemergency transport of Medicare beneficiaries to and from dialysis treatment centers. The Indictment alleged the claims were fraudulent because the patients were ambulatory and the ambulance transports were not medically necessary.
The Indictment focused on an August 2010 audit conducted by Medicare and a June 2, 2011 search of Advantage’s business premises by federal law enforcement officers. In response to the audit Sivchuk submitted 14 ambulance Trip Sheets to Medicare that were prepared by Emergency Medical Technicians (EMTs) at the time of each ambulance transport. The Trip Sheets contained a narrative section that described the patient’s physical condition and ability to ambulate, and serve as the primary support document for each Medicare billed, ambulance transport claim. The June 2, 2011 search by the FBI and investigators from the Health and Human Services (HHS) Inspector General’s Office revealed Sivchuk did not submit the original trip sheets to the auditors but instead submitted copies that had been re-written and forged to conceal the fact the beneficiaries were ambulatory and capable of walking and standing.
During a February 22, 2013 court appearance before Judge Connor, Sivchuk plead guilty to one of the 14 False Statement Counts for which he was indicted, admitting he directed a subordinate to re-write and forge the signatures of two EMTs on a Trip Sheet pertaining to the ambulance transport of a dialysis treatment beneficiary on August 19, 2010. Sivchuk is currently awaiting sentencing and the completion of a pre-sentence report.Medicare paid Advantage approximately $166 for each leg of a transport to and from a dialysis treatment center, plus $5.49 per mile. Many dialysis patients underwent 3 treatments per week. Thus, one week’s transport of just one dialysis patient would yield Advantage more than $1,000.
Under the terms of Advantage’s plea agreement Judge Conner will determine the overall loss to Medicare. During the guilty plea proceeding Assistant U.S. Attorney Kim Douglas Daniel told the Court the government intends to show during the loss hearing that the total loss to Medicare was approximately $740,000. Daniel also noted that at the time the investigators executed the June 2, 2011 search warrant, the U.S. Attorney’s Office filed a civil action in federal court that froze more than $936,000 in Advantage and Sivchuk controlled bank accounts.
The case is part of a priority program within the U.S. Department of Justice and the U.S. Attorney’s Office focusing on Health Care Fraud and a joint investigation by the FBI and the HHS-Office of Inspector General. Anyone with information concerning suspected health care fraud should contact the FBI at 717-232-8686.
Guilty Verdict Returned in South Bend District CourtRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana -- United States Attorney David Capp announced:
Robert E. Miller, 60, of South Bend, Indiana, was found guilty at trial on one count of tax evasion.According to the indictment filed by the government in this case, Miller willfully attempted to evade and defeat the payment of a substantial part of the income tax due and owing by him for the calendar years 1999, 2000, 2002, 2004, 2005, 2007, 2008 and 2009 in the cumulative amount of more than $150,000 by, among other things, failing to pay taxes due and owing despite having employment and substantial income; asking his employer not to make out checks to him in his name; avoiding the use of personal bank accounts and using Green Dot cards to conduct his financial business; and making several false statements to IRS personnel including falsely denying that he had income, falsely denying that he had a job, and falsely denying that he had a bank account. These charges were filed as the result of an investigation by the Internal Revenue Service.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
Grand Jury Returns Indictment Charging Manhattan Physician with Unlawfully Distributing Prescription DrugsRead the Press Release
TOPEKA, KAN. – A grand jury has returned an indictment charging a physician in Manhattan, Kan., with unlawfully distributing prescription drugs, U.S. Attorney Barry Grissom said today.
Physician Michael Schuster, 53, who operates Manhattan Pain and Spine in Manhattan, Kan., is charged with four counts: One count of conspiracy to illegally distribute controlled substances, one count of unlawful distribution of controlled substances, one count of unlawfully distributing controlled substances to a person under 21 years old and one count of maintaining a premises in furtherance of unlawful drug distribution.
The indictment alleges that Schuster employed unlicensed staff members who distributed controlled substances to patients using Schuster’s signature on prescriptions while he was traveling out of the state or out of the country. Schuster was out of the office when a total of 540 patients received prescriptions for medications including oxycodone, morphine, hydromorphone, methadone, oxymorphone, tapentadol, fentanyl, amphetamine, methylphenidate, hydrocodone, alprazolam, clonazepam, diazepam and zolpidem.
Schuster initially was charged in a criminal complaint filed April 23, 2013, in U.S. District Court in Topeka. According to an investigator’s affidavit, the investigation began early in 2012 when the Riley County Police Department received reports that Schuster was issuing prescriptions for high dosages of scheduled drugs based on minimal or cursory physical examinations.
The indictment returned today states that controlled substances may be dispensed and distributed lawfully by means of a prescription that is issued for a legitimate medical purpose by a practitioner acting in the usual course of professional practice. The practitioner must be registered with the Drug Enforcement Administration. Signing a blank prescription and having unauthorized, unlicensed individuals who are not registered with the DEA distribute controlled substances is not a lawful prescription.
The indictment alleges Schuster routinely pre-signed blank prescription forms with the intent that his unlicensed staff members would use them to issue controlled substances to patients while he was not at the clinic.Count 2 of the indictment alleges Schuster caused unlicensed staff using blank prescriptions to distribute controlled substances while he was out of the clinic at various locations including Russia, South Africa, Uruguay, Canada, New York, Chile, Argentina, Brazil and Israel.
Count 3 alleges that on June 16, 2010, Schuster caused oxycodone to be distributed to a person under the age of 21, who is identified in the indictment as Rex V.
Count 4 alleges that from April 2007 to August 2012 Schuster knowingly maintained a premises, his office at 1135 Westport Drive in Manhattan, Kan., for the purpose of unlawfully distributing controlled substances.
The indictment also seeks the forfeiture of all the proceeds from the crimes.
Upon conviction, the crimes carry the following penalties: Conspiracy: A maximum penalty of 20 years in federal prison and a fine up to $1 million. If death or bodily injury results from the crime, the penalty is not less than 20 years.
Unlawful distribution of controlled substances: A maximum penalty of 20 years in federal prison and a fine up to $1 million. If death or bodily injury results from the crime, the penalty is not less than 20 years.
Unlawful distribution of controlled substances to a person under 21 years old: A maximum penalty of 20 years in federal prison and a fine up to $1 million. If death or bodily injury results from the crime, the penalty is not less than 20 years.
Maintaining drug involved premises: A maximum penalty of 20 years and a fine up to $500,000.Investigating agencies include the Riley County Police Department; the Federal Bureau of Investigation; the Department of Defense, Criminal Investigative Service (DCIS); the Department of Health and Human Services, Office of Inspector General (HHS-OIG); the Drug Enforcement Administration (DEA); the Department of Homeland Security - Homeland Security Investigations (DHS-HSI); and the Diplomatic Security Service (DSS).
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.Frederick Paul Deputee, Jr. Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on May 1, 2013, before Chief U.S. District Judge Richard F. Cebull, FREDERICK PAUL DEPUTEE, JR., a 25-year-old resident of Hardin and an enrolled member of the Crow Tribe, appeared for sentencing. DEPUTEE was sentenced to a term of:
Probation: 5 years
Special Assessment: $100
Restitution: $6,130
DEPUTEE was sentenced in connection with his guilty plea to theft from an Indian organization.
In an Offer of Proof filed by Assistant U.S. Attorney Carl E. Rostad, the government stated it would have proved at trial the following:
The Crow Tribal Historic Preservation Office (CTHPO) on the Crow Indian Reservation was created in 2005. The CTHPO is a designated office of the Crow Indian Tribe that provides for direct Tribal involvement and leadership in the protection and enhancement of Crow lands and cultural resources. It serves to identify, inventory, and protect culturally, archeologically, and historically important resources both on and off the reservation.
Each year, the CTHPO receives grant funds from the National Park Service, U.S. Department of the Interior. A requirement for any enterprise seeking to do work on the reservation that may disturb tribal lands - utilities, construction, energy exploration, development - is that the business employ the services of a CTHPO employee (archeological technician) to monitor the project to insure that lands of cultural or historic importance are not destroyed. The company is then charged for this monitoring service and payments are made to the Crow Tribe.
The Director of the CTHPO from approximately 2005 until November 15, 2011 is identified here as X.X. During the time X.X. was Director, most of the monitors were his family members. Two other monitors, one of which was DEPUTEE, were not hired as Crow Tribe employees but were assigned as project monitors and received payment directly from the companies.
Sometime in the summer of 2009, X.X. approached the Vice-Chairman of the Tribe and tried to get the process changed so that the companies could make direct payments to the monitors. When he was told he couldn't do that, he indicated he would take the matter up with the Chairman. The Chairman was never approached and did not provide any approval for X.X.'s request.
Even though his request was denied, X.X. began advising companies that payments would now be made directly to the tribal monitors assigned to the project. At first, in the summer of 2009, few direct payments were arranged. However, in the summer of 2010, the CTHPO staff person who insured that companies were properly billed and that CTHPO payments went to the Tribe left the office, and direct billing - having companies pay monitors personally instead of remitting the fee to the Crow Tribe - became much more prevalent.
From July 2009 to November 2011, a total of over $500,000 in monitoring service payments from the companies doing business on the Crow Reservation were diverted to the personal use and benefit of the employees of the CTHPO and the two non-employees - one of which was DEPUTEE - assigned to projects as a monitor.
In the Summer of 2011 - from June to August - DEPUTEE was assigned as a monitor to the Sarpy Creek project, which was the Westmoreland Resources expansion of the Absaloka Coal Mine in the Powder River Basin. DEPUTEE's assignment was to monitor the progress of the project to insure that no culturally, archeologically, or historically important sites were disturbed.
A Westmoreland sub-contractor, GCM Services, went forward with an extensive excavation of the site with the approval of X.X., who, as Director of the CTHPO, had assigned DEPUTEE and others as project monitors. As a result of the approved site plan, a 2,000-year-old bison kill site was unearthed in 2011 with heavy equipment, causing significant, irreparable damage to the site. The largest bison bone bed was estimated to cover almost 3,000 square meters and contained the remains of hundreds, perhaps thousands, of butchered bison remains and prehistoric spear points dating back to the Late Archaic period.
When interviewed, DEPUTEE maintained that he was authorized by his aunt to work as a monitor on the site and denied knowing that the money paid by the companies were tribal fees which should have been deposited with the tribal government. His aunt had no supervisory role at the CTHPO. DEPUTEE was convinced - based on the assurances given to him by his aunt - that he could act, and was participating in the CTHPO activities, as an independent contractor role and also received payment directly from GCM. He admitted, however, that he did not work the hours for which he billed the company and acknowledged the wrongfulness of billing for hours not worked. According to a GCM Services company representative, "the monitors often did not show up, and, if they did, they often only worked one to three hours."
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that DEPUTEE will likely serve all of the time imposed by the court. In the federal system, DEPUTEE 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 a team of agents and auditors working with the U.S. Attorney's Guardians Project, including the Office of Inspector General for the Department of Interior, the Federal Bureau of Investigation, and the Criminal Investigation Division of the Internal Revenue Service.
Former VA Employee Arrested, Charged with Filing False StatementsRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Amelia Jackson, 43, of Rochester, N.Y., was arrested and charged by criminal complaint with knowingly making false material statements and certifications and knowingly concealing outside employment in connection with an application for and receipt of Federal Employee Compensation. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that according to the complaint, the defendant was employed at the VA Medical Center in Canandaigua, N.Y. On August 15, 2008, Jackson filed paperwork with the United States Department of Labor claiming to have suffered a back injury while working with a patient. Subsequent information provided by the defendant indicated that she was medically limited as to the number of hours she could work each day and did not work outside of her federal job due to her injury.
In January of 2012, a VA employee went to Last Call Liquors on East Main Street in Rochester and observed the defendant working in the store which investigators later determined that Jackson owns and operates. The defendant was observed on several occasions going to Last Call Liquors following her four hour disability shift at the VA.
Jackson was arraigned this afternoon before U.S. Magistrate Judge Marian W. Payson. She was released and is due back in court on June 26, 2013.
The complaint is the culmination of an investigation on the part of Special Agents of Jackthe United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Robert L. Panella, Special Agents of the United States Department of Veterans Affairs, Office of Inspector General, under the direction of Special Agent in Charge Jeffrey Hughes, and the VA Police Department, under the direction of Chief Jon Godfrey.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Former Tri City Bomber Gets 20 Years in Federal PrisonRead the Press Release
HOUSTON – Jeffrey Juarez, the one-time leader of the notorious Tri City Bomber (TCB) Street gang, has been sent to federal prison for his conviction of conspiracy to possess with intent to distribute cocaine and ecstasy, United States Attorney Kenneth Magidson announced today along with and Armando Fernandez, special agent in charge of the FBI’s San Antonio Division. Juarez entered a plea of guilty on Sept. 6, 2012.
Today, U.S. District Judge Gray Miller, who accepted the guilty plea, handed Juarez a 240-month term of federal imprisonment which will be followed by five years of supervised release.
“The punishment imposed today reflects our efforts to disrupt and dismantle an entire criminal enterprise up to and including its leadership,” said Magidson. “We will not waiver in our determination to diminish gang crime and hold those accountable for their illegal actions.
Juarez aka “Dragon” and “Tira,” 35, of Sugar Land, along with 12 fellow gang members were indicted February 2011 following a four-year long investigation. Following today’s hearing, all have now been convicted and sentenced.
Juarez led the TCB gang who made money by trafficking in cocaine and other drugs and by providing protection services for drug loads.
“Today's sentencing is a clear message to all organized crime leaders that the safety of our communities will always be more important than your criminal enterprise,” said Fernandez, “and that our team work will always prevail.”
In October 2008, Juarez agreed the gang would provide protection for loads of cocaine traveling through South Texas for money. Unknown to Juarez, however, the loads were controlled by the FBI. Thereafter, Juarez, aided by other members or associates of the TCB gang provided protection for eight loads of cocaine loaded into a vehicle by the FBI. Juarez was paid for his services after each load and each transport was monitored by video and audio recording.
During this same time frame, Juarez sold approximately 388 Ecstasy pills to an FBI confidential source on numerous occasions.
The TCB gang was formed in the early 1980s in the Pharr, San Juan and Alamo areas of South Texas. An organized group with mandatory specific rules and regulations knows as “Las Reglas” to endure loyalty and participation of gang members in criminal activity, the TCB also has a decision making hierarchy including a person in charge in each city and persons holding positions within the organization including president, generals, captains, lieutenants, sergeants, soldiers and prospects. “Prospects” are those in the process of becoming TCB members. Non-members who do business with or perform work for the TCB are referred to as “associates.”
TCB membership is for life and many of the members have tattoos such as “TCB,” a necklace tattoo made of small bombs, a 1939 Chevy Bomb car, three high-rise buildings or “39” which present their membership and allegiance to the TCB. Members pay monthly fees to support incarcerated members and to further the illegal activity of the gang.
Juarez has been in custody since his arrest where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This investigation was led by agents and officers from the FBI assisted by the United States Border Patrol, Hidalgo County Sheriff’s Department, Texas Department of Public Safety, McAllen Police Department and Mission Police Department. Assistant United States Attorneys Tim S. Braley and Mark Donnelly prosecuted the case.
Former Texas State Parole Officer Sentenced<br /> for Taking Bribes from Assigned ParoleeRead the Press Release
A former Texas state parole officer was sentenced to 20 months in prison today for taking bribes from one of her assigned parolees in exchange for not reporting his parole violations, announced Acting Assistant Attorney General Mythili Raman of the Department of Justice’s Criminal Division.
Nichelle Derricks, 38, of Cedar Hill, Texas, pleaded guilty on Jan. 22, 2013, to one count of honest services wire fraud in the Northern District of Texas.
According to court documents, while serving as a Texas Department of Criminal Justice (TDCJ) parole officer, Derricks and one of her assigned parolees developed an improper relationship in which Derricks secretly used her official position with TDCJ to enrich herself and others by soliciting and receiving cash payments, gifts, furniture, household goods and items, food and beverages and other things of value from the parolee in exchange for favorable official action benefitting the parolee. The scheme was conducted without the authorization, knowledge or approval of TDCJ and contrary to TDCJ procedures and requirements.
Derricks admitted she repeatedly failed to report the parolee for violating the terms of his parole, including, among other things, failing to report him for traveling outside Texas without prior, written approval and for engaging in prohibited financial transactions.
The case was investigated by the FBI’s Dallas Field Office, with assistance from the U.S. Secret Service and the TDCJ Office of Inspector General. The case is being prosecuted by Trial Attorneys Edward P. Sullivan of the Justice Department Criminal Division’s Public Integrity Section.
Former St. Joseph’s Hospital Employee Pleads Guilty to EmbezzlementRead the Press Release
SYRACUSE, NY –United States Attorney Richard S. Hartunian announced that BONNIE SIMSON, 41, of Manlius, NY entered a plea of guilty in U.S. District Court in Syracuse on April 30, 2013, to an indictment charging her with one count of embezzlement from a program receiving federal funds, in violation of Title 18, United States Code, Section 666(a)(1)(A).
Ms. Simson faces a maximum term of imprisonment of 10 years, a fine of $250,000 and a term of supervised release of three years. From December of 2000 until March, 2011, Simson was employed as the manager of the Patient Telephone and Television Services Program ("PTTSP") at St. Joseph's Hospital in Syracuse, New York. During that time, Simson stole currency from envelopes containing payments made by individual patients to the PTTSP and then inaccurately reported the amount of currency payments made by the patients in order to conceal her embezzlement. The government has charged that Ms. Simson embezzled in excess of $800,000, but Ms. Simson maintains that the amount of stolen funds is lower. The amount of stolen funds will be determined at sentencing.
This case resulted from an investigation conducted by the Electronic Crimes Task Force staffed by members of the United States Secret Service, Syracuse Resident Office, and Syracuse Police Department. The case is being prosecuted by Assistant U.S. Attorney Gwendolyn Carroll. Sentencing is currently set for September 13,2013 at 10:00 in Utica, New York.
All press inquiries may be made to Executive Assistant United States Attorney John G. Duncan, who may reached at (315) 448-0672.
Former Resident of Hudson County, N.J., Admits Defrauding Hospitalized, Elderly WidowRead the Press Release
CAMDEN, N.J. – A former Hudson County, N.J., resident admitted today that he defrauded an elderly woman of approximately $279,000 while she was hospitalized for cancer treatment, U.S. Attorney Paul J. Fishman announced.
Ralph Cozzino, 43, of North Bergen, N.J., pleaded guilty today before U.S. District Judge Robert B. Kugler in Camden federal court to Count One of the Indictment charging him with mail fraud.
According to the documents filed in this case and statements made in court:
Cozzino admitted to stealing stock certificates from the elderly victim’s apartment. Cozzino then presented the stolen stock certificates to the victim’s stock transfer agent, along with a fraudulent power of attorney bearing the victim’s name, address, Social Security number and forged signature, which purported to grant him control over the victim’s financial affairs, including the power to redeem and/or sell stock.
Cozzino instructed the stock transfer agent to transfer ownership of the stolen stocks into Cozzino’s name and to liquidate certain shares of stock for his benefit. Cozzino caused the stock transfer agent to send him the proceeds of the liquidated shares, which he deposited into bank accounts that he controlled and spent the funds on various personal expenditures, including a 2006 Nissan, Lasik eye surgery, as well as a down payment, closing costs, and furniture for a new house. From April 2006 until October 2007, Cozzino liquidated, and converted to his own use, approximately $279,000 in stolen shares belonging to the victim.
The mail fraud count to which Cozzino pleaded guilty carries a maximum potential penalty of 20 years in prison and a fine of $250,000. Sentencing is scheduled for Aug. 14, 2013.
U.S. Attorney Fishman credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge of the Newark Division Maria Kelokates, for the investigation leading to today’s guilty plea.
The Government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
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Defense counsel: J. Michael Farrell Esq., Wenonah, N.J.Cozzino Indictment
Former Police Officer Sent to Prison on Gun ChargesRead the Press Release
BROWNSVILLE, Texas – Armando Duenez, 31, has been ordered to federal prison following his convictions for conspiracy to export firearms and failure to appear, United States Attorney Kenneth Magidson announced today. Duenez, who pleaded guilty Jan. 30, 2013, was employed as a police officer with the Rio Hondo Police Department during the offense.
Today, U.S. District Judge Hilda G. Tagle, who accepted the guilty plea, handed Duenez a sentence of 60 months for the firearms charge and 60 months for failing to appear as ordered. A portion of the sentences will be served consecutively for a total sentence of 64 months. He was further ordered to serve three years of supervised release following completion of the prison term. In handing down the sentence, Judge Tagle also ordered Duenez perform 150 hours of community service upon his release from prison.
The former officer entered into an agreement with others to export weapons from the United States to Mexico. Duenez admitted to working with Raymond Martinez, formerly a member of the Palm Valley Police Department, to buy firearms and sell them for a profit to individuals who intended to smuggle them to Mexico. Duenez admitted to purchasing more than 15 semi-automatic rifles that were later sold in Mexico. The rifles were all capable of accepting high capacity magazines. The investigation began when weapons recovered in Mexico were traced back to him. Martinez was also convicted of dealing in firearms without a license and later sentenced to federal prison.
Duenez was arrested for the firearms offense in July 2008. After being release on bond, Duenez failed to appear for his arraignment having fled to Mexico. Duenez remained in Mexico until he surrendered to United States Marshals Service in December 2012.
Duenez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Bill Hagen.Former NFL Player Sentenced to Seventeen Years in Federal Prison for Role in Drug Trafficking ConspiracyRead the Press Release
Tampa, Florida - U.S. District Judge James S. Moody, Jr. today sentenced John Wesley Wilson (48, Zephyrhills), a former wide receiver for the Washington Redskins, to 17 years in federal prison for drug trafficking and firearms offenses. He pleaded guilty on January 18, 2013. The imposed sentence includes 12 years' imprisonment for three drug-related charges, followed by a mandatory consecutive five years in prison for possessing a firearm in furtherance of drug trafficking offenses.
According to court documents, from 2009 to 2012, Wilson regularly worked with others in Pasco County to distribute large quantities of cocaine and crack cocaine. In 2009, during the height of his drug trafficking operations, Wilson distributed approximately 100 kilograms of cocaine per month, and profited over $1 million. During a search of Wilson's residence on December 19, 2011, investigators found a quarter-kilogram of cocaine, over an ounce of crack cocaine, a loaded .380 caliber handgun, and a loaded shotgun.
This case was investigated by the Drug Enforcement Administration and the Pasco County Sheriff's Office as part of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. It was prosecuted by Assistant United States Attorney Christopher F. Murray.
Former Maury County, Tennessee Correction Officerpleads Guilty to Conspiring to Bring Contraband into the JailRead the Press Release
Former Maury County Correction Officer Derek Wayne Turner, 38, of Mt. Pleasant, Tenn., pleaded guilty yesterday in U.S. District Court to charges of conspiring to introduce contraband and controlled substances into a jail, in exchange for cash payments, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee.Turner was indicted by a federal grand jury on October 25, 2012, along with Maury County Jail inmates Benjamin R. Bradley, 35, and James E. Pierce, 40, Bradley’s mother, Linda Chapman, 52, of Columbia, Tenn. and Melinda A. Buie, 41, of Mt. Pleasant, Tenn. and charged with conspiracy to introduce contraband and controlled substances, including tobacco and scheduled drugs, into a jail, between February - June 2011.
Turner’s sentencing hearing is scheduled for July 25, 2013, before U.S. District Judge Aleta A. Trauger. Linda Chapman pleaded guilty on April 25, 2013, and is scheduled to be sentenced on July 18, 2013. Both face a maximum penalty of 66 months in prison and a $255,000 fine.
This case was investigated by the FBI, the Tennessee Bureau of Investigation and the Maury County Sheriff’s Department. The case is being prosecuted by Assistant U.S. Attorney Darryl A. Stewart.
The charges against Bradley, Buie and Pierce are still pending. An indictment is merely a charge and is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty in a court of law.Former Executive of French Power Company Subsidiary <br /> Charged in Connection with Foreign Bribery SchemeRead the Press Release
A former executive of the U.S. subsidiary of a French power and transportation company was charged in a superseding indictment for his alleged participation in a scheme to pay bribes to foreign government officials, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the District of Connecticut David B. Fein and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office announced today.
William Pomponi, 65, a former vice president of sales for the Connecticut-based U.S. subsidiary, was charged in a superseding indictment late yesterday in the District of Connecticut with conspiring to violate the Foreign Corrupt Practices Act (FCPA) and to launder money, as well as substantive charges of FCPA and money laundering violations.
On April 16, 2013, charges against Frederic Pierucci and a guilty plea by David Rothschild in connection with the bribery scheme were announced. Pierucci is charged in the superseding indictment with Pomponi. On Nov. 2, 2012, Rothschild pleaded guilty to a criminal information.
According to the charges, the defendants, together with others, paid bribes to officials in Indonesia, including a member of Indonesian Parliament and high-ranking members of Perusahaan Listrik Negara (PLN), the state-owned and state-controlled electricity company in Indonesia, in exchange for assistance in securing a $118 million contract, known as the Tarahan project, for the company and its consortium partner to provide power-related services for the citizens of Indonesia. The charges allege that, in order to conceal the bribes, the defendants retained two consultants purportedly to provide legitimate consulting services on behalf of the power company and its subsidiaries in connection with the Tarahan project. In reality, however, the primary purpose for hiring the consultants was allegedly to use the consultants to pay bribes to Indonesian officials.
The first consultant retained by the defendants allegedly received hundreds of thousands of dollars into his Maryland bank account to be used to bribe the member of Parliament, according to the charges. The consultant then allegedly transferred the bribe money to a bank account in Indonesia for the benefit of the official. According to court documents, emails between Pomponi, Pierucci, Rothschild and their co-conspirators discuss in detail the use of the first consultant to funnel bribes to the member of Parliament and the influence that the member of Parliament could exert over the Tarahan project. However, when Pomponi, Pierucci and others determined that the first consultant was not effectively bribing key officials at PLN, they allegedly retained a second consultant to accomplish that purpose. The charges allege that the power company deviated from its usual practice of paying consultants on a pro-rata basis in order to make a much larger up-front payment to the second consultant so that the consultant could “get the right influence.” An employee at the power company’s subsidiary in Indonesia sent an email to Pomponi, Pierucci and others asking them to finalize the consultancy agreement with the front-loaded payments but stated that in the meantime the employee would give his word to a high-level official at PLN, according to the charges.
The conspiracy to commit violations of the FCPA count carries a maximum penalty of five years in prison and a fine of the greater of $250,000 or twice the value gained or lost. The substantive FCPA counts each carry a maximum penalty of five years in prison and a fine of the greater of $100,000 or twice the value gained or lost. The conspiracy to commit money laundering count carries a maximum penalty of 20 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the transaction. The substantive money laundering counts each carry a maximum penalty of 20 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the transaction.An indictment is merely an accusation, and defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
The case is being prosecuted by Trial Attorney Daniel S. Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David E. Novick of the District of Connecticut. The case is being investigated by FBI agents who are part of the Washington Field Office’s dedicated FCPA squad, with assistance from the Meriden, Conn., Resident Agency of the FBI. Significant assistance was provided by the Criminal Division’s Office of International Affairs, and the department has also worked closely with its law enforcement counterparts in Indonesia at the Komisi Pemberantasan Korupsi (Corruption Eradication Commission) and deeply appreciates KPK’s assistance in this matter.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Related Materials:
Superseding Indictment
Former Bronx Child Care Employee Pleads Guilty to Production of Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that JOSHUA CONDE, a former employee of a child care and after-school program in the Bronx, pled guilty to producing and causing the production of numerous pornographic images of a child victim. He pled guilty in Manhattan federal court this afternoon before U.S. District Judge Paul G. Gardephe.
Manhattan U.S. Attorney Preet Bharara said: “Joshua Conde, a man who was entrusted with the care of children, engaged in the worst possible kinds of child exploitation – sexual victimization and the creation and distribution of child pornography. He has now pled guilty and admitted these terrible crimes, and will no longer be in a position to harm other children.”
According to the Complaint, the Superseding Indictment, CONDE’s plea agreement, statements made in court proceedings, and other public documents:
CONDE was initially arrested in May 2012 after a joint U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”) and New York City Police Department (“NYPD”) investigation determined that he had possessed child pornography that had been downloaded from the Internet and saved onto his computer. The investigation also determined that he had distributed child pornography over the Internet using file-sharing software. During a search of his residence conducted at the time of his arrest, a computer and several additional electronic devices containing images and videos of minor children engaging in sexually explicit conduct were seized. CONDE was charged with three counts of transporting or distributing child pornography, and one count of possessing child pornography. He was released on bail over the Government’s objection.
In August 2012, the Government again sought to have CONDE detained on the basis of new information developed during the course of the investigation. Law enforcement officers recovered pornographic images of a young girl from the computer and related devices seized from CONDE at the time of his arrest that appeared to have been taken in his bedroom. Based on that newly-developed information, U.S. District Judge Kathleen Forrest ordered CONDE remanded, finding, after a review of some of the photographs in question, that the “defendant somehow managed to lure children into his bedroom” where he took the newly discovered pictures which were “without a doubt pornographic.”
CONDE was subsequently charged with one count of sexual exploitation of a minor for his role in using, persuading, inducing, and enticing a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of that conduct. In addition to his role in producing these images, CONDE has since admitted, as a condition of his plea agreement with the Government, to sexually abusing the victim in question.
CONDE, 27, of Bronx, New York, pled guilty to one count of sexual exploitation of a minor. He faces a mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison, a maximum term of supervised release for life, and a fine of up to $250,000. He will also be subject to a restitution order to be imposed by the Court at sentencing. CONDE is scheduled to be sentenced by Judge Gardephe on August 13, 2013 at 2 p.m.
Mr. Bharara praised the outstanding investigative work of ICE HSI and the NYPD. He added that the investigation is continuing.
This prosecution is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Edward B. Diskant is in charge of the prosecution.
ICE HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. This hotline is staffed around the clock by investigators.
Suspected child sexual exploitation or missing children may be reported to the National Center for Missing and Exploited Children, an Operation Predator partner, at (800) 843-5678 or http://www.cybertipline.com.
Conde, Joshua S1 Indictment
Financial Consultant Charged with FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced the filing of criminal charges Tuesday against August John Stile, Jr. age 49, of Hughestown, Pennsylvania.
According to United States Attorney Peter J. Smith, the Criminal Information alleges that between 2007 and January 2011, Stile devised and executed a scheme to defraud private investors of money by fraudulently offering short term investment opportunities based upon a promise of a return of the investment with substantial interest in less than 90 days. Stile allegedly defrauded the investors of approximately $310,000.
Stile was allegedly the purported Vice President of JFC Group and the President of Stile Consulting. JFC Group had an office in Dickson City, Pennsylvania, and Stile Consulting had its office in Exeter, Pennsylvania.
The case was investigated by the Federal Bureau of Investigation. Prosecution has been assigned to Assistant United States Attorney John Gurganus.Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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 140 years’ imprisonment, a term of supervised release following imprisonment, 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.
Federal Grand Jury Indicts Mercer County Man on Mine Safety ViolationsRead the Press Release
CHARLESTON, W. Va. – A Mercer County man who allegedly falsified mandatory mine safety reports while employed at several West Virginia mining operations was indicted on April 30 by a federal grand jury sitting in Charleston for violating mine health and safety laws, announced U.S. Attorney Booth Goodwin. Craig Belcher, 36, of Bluefield, Mercer County, W.Va., was charged with four counts of providing a false statement, representation and certification in a Mine Safety and Health Administration (MSHA) document.
In January 2009, Belcher was hired to work as an underground mine foreman at Spartan Mining Company’s Road Fork No. 51 mine located in Wyoming County, W.Va. Additionally, in February 2009 Belcher was hired to perform mine foreman duties at Frasure Creek’s Mine No. 15 located in Fayette County, W.Va. Belcher was also hired to perform similar foreman duties in May 2009 at Pay Car’s Mine No. 58 in McDowell County, W.Va., and, in July 2010 at Double Bonus’s Mine No. 65 in Wyoming County, W.Va.
The indictment alleges that between January 27, 2009 and July 13, 2010, Belcher signed pre-shift and on-shift reports, indicating that he had properly examined particular sections at each mining operation. The indictment further alleges that Belcher was not certified as a foreman when the reports were completed. Belcher also allegedly falsified foreman’s certificate numbers on the pre-shift and on-shift reports, using foreman’s numbers that did not belong to him.
Belcher faces up to five years in prison and a $250,000 fine on each count if convicted.
The Mine Safety and Health Administration (MSHA) conducted the investigation. Assistant United States Attorney Blaire Malkin is in charge of the prosecution.
Note: The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty
Federal Grand Jury IndictsRead the Press Release
FCI MCDOWELL INMATE FOR ALLEGED ESCAPE FROM CUSTODY
CHARLESTON, W.Va. –A federal grand jury sitting in Charleston indicted Federal Correctional Institution (FCI) McDowell inmate Milton Rawling, 36, for allegedly escaping federal custody from December 19, 2012 through February 19, 2103. The indictment returned on April 30 alleges that Rawling failed to report to Hope Village, Inc., a residential reentry center located in Washington, D.C. Rawling was in custody due to his conviction of a federal felony offense. Rawling was ordered to report to the reentry center, also known as a halfway house, but failed to do so.
Rawling faces up to five years in prison and a $250,000 fine if convicted.
The investigation was conducted by the United States Marshals Service. Assistant United States Attorney William King is in charge of the prosecution.
Note: The charge contained in the indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
Eleven Defendants Plead Guilty to Federal Fraud Charges Related to Annandale BusinessesRead the Press Release
ALEXANDRIA, Va. – Between April 17 and May 29, 2013, eleven defendants have pleaded guilty to mortgage fraud and other fraud-related charges. This criminal activity involved the owners, operators, employees, and affiliates of several real estate-related businesses located in Annandale, Virginia and nearby Northern Virginia towns.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office made the announcement after the pleas were accepted by the following United States District Judges: Gerald Bruce Lee, Liam O’Grady, and Anthony J. Trenga.
“Rampant fraud in the real estate sector provided the catalyst for the 2008 housing crisis, and continued fraud slows our economic recovery,” said United States Attorney, Neil H. MacBride. “My office is committed to ferreting out and prosecuting those in our Northern Virginia communities who commit fraud against banks and innocent third-parties during the course of real estate transactions. The conviction of these eleven defendants is proof-positive of our commitment to root out this kind of fraud within the borders of the Eastern District of Virginia.”
“These defendants have admitted to bilking millions of dollars from our financial institutions by falsely inflating costs of doing business while processing short sales, keeping payoffs from mortgages thought to have been refinanced, and illegally borrowing against escrow accounts of homeowners in Northern Virginia,” said Assistant Director in Charge Parlave. “These pleas should serve as an alert to those who believe fraud is an acceptable way of doing business. Together with our law enforcement partners, the FBI will remain vigilant in investigating mortgage fraud schemes and will hold individuals accountable for their illegal actions.”
Altogether, eleven individuals have been convicted in this fraud ring:
- Theresa Choi, 53, of Centreville, Virginia, pleaded guilty on April 17, 2013, to one count of felony conspiracy to commit wire fraud. She faces a maximum penalty of 20 years in prison when she is sentenced on July 12, 2013;
- Seung Oh a/k/a Sandy Oh, 44, of Great Falls Virginia, pleaded guilty on April 30, 2013, to one count of felony conspiracy to commit wire fraud. She faces a maximum penalty of 20 years in prison when she is sentenced on August 16, 2013;
- Haemi Chee, 24, of Fairfax, Virginia, pleaded guilty on May 1, 2013, to one count of felony conspiracy to commit wire fraud. She faces a maximum penalty of 20 years in prison when she is sentenced on July 19, 2013.
- Hae Mi Son a/k/a Teri Sohn, 37, of Fairfax, Virginia, pleaded guilty on May 2, 2013, to one count of felony conspiracy to commit wire fraud. She faces a maximum penalty of 20 years in prison when she is sentenced on September 6, 2013.
- Sung Hwan Kim a/k/a Brian Kim, 47, of Fairfax, Virginia,pleaded guilty on May 9, 2013, to one count of felony conspiracy to commit wire fraud. He faces a maximum penalty of 20 years in prison when he is sentenced on August 16, 2013.
- James Youngmock Sohn, 55, of Potomac, Maryland, pleaded guilty on May 8, 2013, to one count of felony conspiracy to commit wire fraud. He faces a maximum penalty of 20 years in prison when he is sentenced on August 16, 2013.
- Joy Park, 37, of McLean, Virginia, pleaded guilty on May 10, 2013, to two counts of felony conspiracy to commit wire fraud. She faces a maximum penalty of 20 years in prison for each count when she is sentenced on August 9, 2013.
- Yeon Kyung Han, 52, of McLean, Virginia, pleaded guilty on May 15, 2013, to two counts of felony conspiracy to commit wire fraud. She faces a maximum penalty of 20 years in prison for each count when she is sentenced on August 9, 2013.
- Hee Jung Jenny Shin, 44, of Fairfax Station, Virginia, pleaded guilty on May 29, 2013, to one count of felony conspiracy to commit wire fraud. She faces a maximum penalty of 20 years in prison when she is sentenced on September 20, 2013.
- Woo Suk Oh a/k/a Eddie Oh, 41, of Annandale, Virginia, pleaded guilty on May 14, 2013, to one count of felony conspiracy to commit wire fraud. He faces a maximum penalty of 20 years in prison for each count when he is sentenced on September 6, 2013.
- Min Shik Kim, 40, of Centreville, Virginia, pleaded guilty on May 29, 2013 to one count of felony conspiracy to commit wire fraud. She faces a maximum penalty of 20 years in prison when she is sentenced on September 6, 2013.
According to court documents, many of these defendants were involved in overlapping conspiracies whereby they would alter the terms of real estate settlements that had been approved by financial institutions. Specifically, certain “overages” or illegitimate, inflated costs were added to the settlement paperwork, which induced the real estate lender to provide funds above and beyond what was actually approved to fund the transaction. The conspirators would provide the lenders, buyers, and sellers falsified real estate documents to mask these illegal “overages.” The defendants who were involved in conspiracies of this kind enriched themselves by keeping the “overage” funds for themselves. In another part of the scheme, some of the defendants listed in these overlapping conspiracies laundered the proceeds of cash businesses to avoid paying federal and state taxes. And other defendants, in addition to the above schemes, misappropriated funds kept in real estate escrow accounts for their own personal use. Taken together, these multiple, overlapping conspiracies resulted in millions of dollars of losses to financial institutions, the federal government, and the Commonwealth of Virginia.
The defendants’ conspiracies lasted from approximately 2009 to 2012, in Annandale, Virginia, and other nearby Northern Virginia towns. The following companies were involved in perpetuating the fraud:
- EPRO Technology
- Title One
- Pacific Realty
- Prime Realty and Investment
- Nations Title and Escrow
- Providence Title
- Potomac F&I
- Washington Financial and Investment
- Washington Settlement Group
- Washington Food & Supply of D.C., Inc.
This case was investigated by FBI’s Washington Field Office with investigative assistance provided by Internal Revenue Service Criminal Investigation’s Washington Office and United States Secret Service’s Washington Field Office. Assistant United States Attorney Chad I. Golder is prosecuting the cases 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.Duquesne Pa., Man Sentenced to Probation, Fined for Possessing Fake Federal Law Enforcement CredentialsRead the Press Release
PITTSBURGH - On April 30, a resident of Duquesne, Pa., pleaded guilty and was sentenced in federal court on a charge of possessing imitation credentials of the U.S. Marshals Service, United States Attorney David J. Hickton announced today.
Dwight R. Spaulding, 44, pleaded guilty before United States District Judge David S. Cercone. Spaulding was immediately sentenced to one year probation and a fine of $1,000.
In connection with the guilty plea, the court was advised that on April 15, 2010, Homeland Security Investigations (HSI) agents interviewed Spaulding at his home concerning a package he had received the previous day. The agents suspected the package contained false identification documents. Spaulding showed the agents his wallet, which contained a false National Security Agency (NSA) badge, a false Drug Enforcement Administration (DEA) badge, and false U.S. Marshals Service credentials. Each of the false documents contained the name and photograph of Dwight Spaulding, together with other identifying information for Spaulding, and identified Spaulding as an agent or deputy.
Spaulding advised the agents that he had ordered the NSA and DEA credentials and that both credentials had been in the package he received the previous day. Spaulding told the agents that he produced the U.S. Marshals Service credentials on his home computer, and that he simply "photo shopped" his photograph and other identifying information onto the template for the credentials.
Agents made a mirror image of the hard drive of Spaulding's computer and discovered the file in which Spaulding had created the false Marshals Service credentials. Assistant U. S. Attorney Margaret E. Picking advised the Court that the Marshals Service credentials were an exact likeness of genuine Marshals Service credentials and that Spaulding was not a deputy U.S. Marshal and did not have the authority to possess Marshals Service credentials. Judge Cercone was also advised that there was no evidence that Spaulding had ever used the false credentials.
The United States Department of Homeland Security Investigations conducted the investigation that led to the prosecution of Dwight Spaulding.
Drug Trafficker Trio Sentenced in Federal CourtRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court yesterday, United States District Judge Terrence W. Boyle sentenced ALMONMONICK BULLOCK, 37, of Henderson, North Carolina, ANGELA WILKERSON, 37, of Raleigh, North Carolina, and PATRICK COOPER, 39, of Kittrell, North Carolina, for their respective roles in a heroin trafficking conspiracy. BULLOCK was sentenced to 96 months imprisonment followed by 3 years of supervised release. WILKERSON was sentenced to 70 months imprisonment followed by 5 years supervised release. COOPER was sentenced to 63 months imprisonment followed by 3 years of supervised release.
A Federal Grand Jury returned a Criminal Indictment on September 25, 2012, charging BULLOCK, WILKERSON, and COOPER with conspiring to distribute and possess with the intent to distribute more than 1 kilogram of heroin. On December 13, 2012, BULLOCK and WILKERSON pleaded guilty to the charge in the indictment while COOPER pleaded guilty to conspiring to distribute and possess with the intent to distribute a quantity of heroin.
According to the evidence presented in Court, WILKERSON and BULLOCK would make trips to New Jersey to pick up large quantities of heroin to bring back to Vance County in North Carolina for re-distribution. COOPER used his residence to store and package some of the heroin while BULLOCK and WILKERSON were responsible for re-distributing the heroin in Vance and Wake counties. All told, the conspiracy was responsible for trafficking more than 1 kilogram of heroin in the Eastern District of North Carolina.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Henderson Police Department, the Raleigh Police Department and the Maryland State Police. Assistant United States Attorney, Rudy E. Renfer, represented the United States in this matter.
Detroit Man Indicted by Federal Grand Jury for Possessing HeroinRead the Press Release
CHARLESTON, W.Va. –A federal grand jury sitting in Charleston indicted a Detroit man on Tuesday, April 30 for allegedly possessing heroin. According to the indictment, Jalin Tyref McArn, 19, allegedly possessed with intent to distribute heroin on April 24, 2013 near Huntington, W.Va.
McArn faces up to 20 years in prison and a $1 million fine if convicted.
The investigation was conducted by the Drug Enforcement Administration. Assistant United States Attorney Gregory McVey is in charge of the prosecution.
Note: The charge contained in the indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
Delbert Dean Spear Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on May 1, 2013, before Senior U.S. District Judge Jack D. Shanstrom, DELBERT DEAN SPEAR, a 25-year-old resident of Crow Agency and an enrolled member of the Northern Cheyenne Tribe, pled guilty to assault with a dangerous weapon. Sentencing has been set for August 7, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On October 6, 2012, law enforcement responded to the scene of a stabbing outside of Crow Agency, within the exterior boundaries of the Crow Indian Reservation. An adult male victim had been stabbed approximately seven times in the torso with a knife. The victim was life-flighted to Billings for medical care.
The victim reported that he and a group of people, including SPEAR, were drinking and driving together until the car ran out of gas. Everyone continued drinking until, at some point, the victim and SPEAR started arguing. Both got out of the car, and then SPEAR came at the victim with a knife as he stood beside the car. SPEAR stabbed him multiple times in the chest area until he stumbled and fell. SPEAR then stabbed him in the back area. After the stabbing, the victim walked to a house where he received help.
When questioned, SPEAR admitted that he stabbed the victim and, in a handwritten statement, wrote that he stabbed the victim seven times.
The victim suffered two stab wounds to the right lower chest that deflated his lung and hit his liver, four stab wounds to his right shoulder area, and one stab wound to his right triceps area.
SPEAR faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was a cooperative effort between the Bureau of Indian Affairs and the Federal Bureau of Investigation.
David Russell Hargrove Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on May 1, 2013, before Senior U.S. District Judge Jack D. Shanstrom, DAVID RUSSELL HARGROVE, a 33-year-old resident of Livingston, pled guilty to possession of child pornography. Sentencing has been set for August 7, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
Between approximately 2010 and December 2011, in Livingston, HARGROVE possessed computer files containing images of child pornography.
After executing a search warrant at HARGROVE's residence, law enforcement analyzed his computer and located and identified child pornography images and videos. HARGROVE admitted to using the peer-to-peer file sharing program Limewire and searching for terms such as "father/daughter." He admitted to knowing some images were child pornography. The images involved prepubescent minors engaged in sadistic or masochistic conduct. During the analysis of HARGROVE's computer, law enforcement also located child pornography in a separate folder on the desktop.
HARGROVE faces possible penalties of 10 years in prison, a $250,000 fine and lifetime supervision.
The investigation was conducted by the Montana Internet Crimes Against Children (ICAC) Task Force.
Dallas County Man Charged in Federal Complaint with Unlawfully Entering Restricted Area of Dallas Love Field AirportRead the Press Release
DALLAS — Ruben Jimenez Martinez, 36, of Garland, Texas, appeared in federal court this afternoon, before U.S. Magistrate Judge Irma C. Ramirez, on a federal criminal complaint stemming from his unauthorized entrance into a restricted area of Dallas Love Field Airport on Sunday evening, April 28, 2013. He was ordered detained. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, the felony complaint charges Jimenez with entering aircraft or an airport area in violation of security requirements. The offense as charged, upon conviction, carries a maximum statutory penalty of up to 10 years in federal prison and a $250,000 fine.
According to the complaint filed, Jimenez, driving a 2007 Chevrolet Tahoe, pulled onto the Dallas Love Field Airport property where private aircrafts are housed. Jimenez approached the gate of a general aviation aircraft business and began pressing buttons on the gate’s access pad. While an employee opened the gate to engage Jimenez through the vehicle’s window, another employee parked his company SUV on the air operations side of the gate to prevent unauthorized vehicles from entering the restricted area. As that employee began to open the door of his vehicle, Jimenez evaded the vehicle and maneuvered around it at a high rate of speed.
Jimenez proceeded onto and down Taxiway Alpha at speeds estimated to be in excess of 100 miles per hour. The business’s employees were unable to catch up with Jimenez and requested assistance. Jimenez’s Tahoe was ultimately located at Associated Air Hanger 3. Jimenez walked through the hanger and, when officers with the Dallas Police Department arrived and cuffed him, he attempted to break free and additional officers arrived to assist in restraining him. Jimenez was arrested and agreed to speak to law enforcement. He advised that he believed God had directed him to Dallas Love Field and, that while he was in the hanger, he yelled “in the name of Jesus” three times.
A federal criminal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. A defendant is entitled to the presumption of innocence until proven guilty.
The matter is being investigated by the FBI, the Transportation Security Administration, the Federal Air Marshal Service and the Dallas Police Department.
Assistant U.S. Attorney Errin Martin is in charge of the prosecution.
Credit Union Manager Charged with Embezzling over $100,000Read the Press Release
PITTSBURGH - A Lawrence County woman has been indicted by a federal grand jury in Pittsburgh on a charge of embezzlement from a credit union, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on April 30, named Victoria Rozanski, 59, Ellwood City, Pa., as the sole defendant.
According to the indictment, from in or around January of 2003 until in or around May of 2009, Rozanski, who was the manager of the Holy Redeemer Parish Federal Credit Union in Ellwood City embezzled in excess of $100,000 from the credit union.
The law provides for a maximum total sentence of 30 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Convicted Felon Found Guilty of Drug and Firearm ChargesRead the Press Release
Orlando, Florida - U.S. Attorney Robert E. O'Neill announces that a federal jury yesterday found Curtis Lee Dallas (32, Orlando) guilty of being a felon in possession of a firearm, and using that firearm in furtherance of a drug trafficking crime. Dallas faces a minimum penalty of 20 years in federal prison. His sentencing hearing is scheduled for July 25, 2013. Dallas was indicted on August 22, 2012.
According to testimony and evidence presented at trial, on the evening of February 16, 2012, officers with the Orlando Police Department pulled Dallas over for a suspected window tint violation. As one of the officers approached Dallas, as he sat in the vehicle, the officer smelled marijuana and saw that Dallas had marijuana sprinkled across his lap, and realized that Dallas was hiding something in his mouth. Dallas refused to get out of the car and struggled with the officer. When the officer managed to remove Dallas from the car, he found that Dallas had a loaded 9mm pistol tucked into a holster clipped to his pants. Upon searching the vehicle, officers found several plastic bags filled with marijuana, a plastic bag filled with crack cocaine, almost $1000 in cash, and a 50-count box of bullets, the same caliber and brand as loaded in Dallas's gun. After Dallas was arrested, he also spat a plastic bag filled with powder cocaine that he had hidden in his mouth.
This case was investigated by the Bureau of Alcohol, Tobacco and Firearms. It is being prosecuted by Assistant United States Attorney Joseph M. Schuster.
Cold Spring Man Sentenced for Possessing Methamphetamine and Being an Illegal Alien with A FirearmRead the Press Release
MINNEAPOLIS—Yesterday in federal court in Duluth, a 37-year-old Cold Spring man was sentenced for possessing methamphetamine with the intent to distribute it and for being an illegal alien in possession of a firearm. On April 30, 2013, United States District Court Chief Judge Michael J. Davis sentenced Tomas Hermosillo Marquez to 120 months in federal prison on one count of possession with intent to distribute methamphetamine and one count of possession of a firearm by an illegal alien. Marquez was indicted on October 15, 2012, and pleaded guilty on December 13, 2012.
In his plea agreement, Marquez acknowledged that on September 21, 2012, police officers found several packages of methamphetamine, totaling approximately 900 grams, in his trailer house in Cold Spring, Minnesota. The discovery was made while the officers were executing an early morning state search warrant. The police also found a .22-caliber revolver, ammunition, a digital scale, packaging materials, and $4,615 in cash. In addition, the police recovered MSM and inositol, common cutting agents for methamphetamine. Marquez subsequently acknowledged that he had intended to distribute the methamphetamine to another person; that he possessed the gun in connection to his drug trafficking activities; and that he was an illegal alien.This case was the result of an investigation by the Central Minnesota Violent Offender Task Force and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst. To learn more about the harmful effects of methamphetamine, visit http://www.justice.gov/dea/concern/meth.html.
Coast Guard Petty Officer Sentenced to Prison for Stealing More Than $200,000 in Government PropertyRead the Press Release
HOUSTON – U.S. Coast Guard Petty Officer First Class Gavino Ortiz III, 32, of League City, has been ordered to federal prison following his conviction for theft of government property, United States Attorney Kenneth Magidson announced today. Ortiz pleaded guilty Tuesday, Nov. 27, 2012.
Today, U.S. District Judge Gray H. Miller, who accepted the guilty plea, handed Ortiz a sentence of 24 months in prison. He was further ordered to pay restitution in the amount of $230,468.29 and to serve a three-year term of supervised release following completion of his prison sentence.
At the time of his guilty plea, Ortiz acknowledged that were this case to go to trial, the United States could prove that on Nov. 30, 2010, he utilized a government issued J.P. Morgan Chase purchase card to buy a $2,678.91 skydiving parachute with accessories for his personal benefit. The United States would also be able to prove that from July 2010 to August 2011, Ortiz used the purchase card to make personal financial gain purchases totaling approximately $230,468.
Previously released on bond, Ortiz was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.The charge against Ortiz resulting in his guilty plea was the result of an investigation conducted by the U.S. Coast Guard Investigative Service and the Department of Homeland Security-Office of Inspector General.
The case is being prosecuted by Assistant U.S. Attorney Daniel C. Rodriguez.
Chief Engineer from M/t Stolt Facto, Inigo Albina, Pleads Guilty to Obstruction of JusticeRead the Press Release
INIGO ALBINA, age 57, a citizen of the Philippines, pleaded guilty today before U. S. District Judge Stanwood R. Duval, Jr., to a one-count bill of information for obstruction of justice in violation of Title 18, United States Code, Section 1505, announced U. S. Attorney Dana J. Boente.
According to the court documents, ALBINA served as the Chief Engineer of the M/T Stolt Facto, a 26,328 gross ton oil tanker,from October 18, 2012 until on or about January 30, 2013. ALBINA was responsible for the overall operation of the engine room which included maintaining the Oil Record Book. During his tenure as Chief Engineer of the M/T Stolt Facto, ALBINA made and signed all the entries in the Oil Record Book. ALBINA’s entries stated that the bilge water on the vesselhad passed through the Oil Water Separator prior to being discharged overboard.
Contrary to the statements in the Oil Record Book, the contents of the bilge wells and bilge holding tank were actually pumped into the sewage holding tank with hoses that stretched upward onto the uppermost deck of the engine room and around the floor of the engine control room by-passing the Oil Water Separator. From the sewage holding tank, the bilge water was discharged into the ocean. ALBINA did not record these exceptional discharges in the Oil Record Book.
On or about January 15, 2013, the M/T Stolt Facto was boarded by the United States Coast Guard pursuant to its 89(a) authority while the vessel was anchored in the Mississippi River, near New Orleans, Louisiana, and within the Eastern District of Louisiana. During the boarding, the Coast Guard inspectors found the hoses and pump used to by-pass the Oil Water Separator. When the Coast Guard inspectors questioned the engine room crew about the purpose for the equipment and the operation of the Oil Water Separator, all except one engineer, denied that they by-passed the Oil Water Separator despite some of them having been ordered to assist with the connection of the hoses and pumps.
After the Coast Guard’s initial interviews of the engine crew, ALBINA asked each one how he had responded to the Coast Guard’s questions. ALBINA then conducted an all-hands meeting with the engineers and lower level engine room crew. The illegality of the operation was discussed, but ALBINA told everyone in the meeting to deny knowledge of the hoses going to the sewage holding tank by-passing the Oil Water Separator. ALBINA admits that he was trying to influence the Coast Guard inspection by telling the crew to lie in order to prevent the Coast Guard from detecting that the hoses and pump were used to by-pass.
ALBINA faces a maximum of five years incarceration and/or a $250,000 fine. Upon release from any term of imprisonment, ALBINA is subject to up three years supervised release. He will be sentenced on August 7, 2013.
The case was investigated by the United States Coast Guard. The case was prosecuted by Assistant United States Attorney Emily Greenfield.
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Check, Va. Man Sentenced for Lying to InvestigatorsRead the Press Release
ROANOKE, VIRGINIA -- A Check, Va. man, who previously pled guilty to lying to federal investigators about his dealings in firearms, was sentenced yesterday in the United States District Court for the Western District of Virginia in Roanoke.
Thomas Zachariah Jeffries, 45, of Check, Va., previously pled guilty to one count of lying to investigators about his possession of a semiautomatic shotgun. Yesterday morning, he was sentenced to six months of federal incarceration to be followed by six months of home incarceration. In addition, as part of the plea agreement the defendant forfeited 171 firearms, valued at more than $75,000, to the United States.
“Mr. Jeffries illegally sold firearms for profit and lied to federal investigators about his actions,” United States Attorney Timothy J. Heaphy said today. “Illegal gun sales by unlicensed dealers put the public in danger and will not be tolerated.”
The investigation of Mr. Jeffries began in 2010 when agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives [ATF] delivered a “Notice Of Unlicensed Firearms Dealing In Violation Of Federal Law” letter to the defendant. ATF officials told Mr. Jeffries to either stop dealing in firearms or get a license to do so lawfully.
In May 2012, investigators discovered that the defendant had 33 firearms for sale on a public website. Later in 2012, investigators, in conjunction with a search of Jeffries home, interviewed the defendant, during which time the defendant stated that he had never owned, possessed or even seen a semiautomatic shotgun, commonly referred to as a “street sweeper.” Investigators later determined that in fact the defendant had been in possession of the firearm in question.
The investigation of the case was led by Special Agent Stephen Levesque of the Bristol ATF Office, with assistance from the Roanoke ATF Office. Special Assistant United States Attorney Albert Mayer prosecuted the case for the United States.
Canton Man Admits Producing Child PornographyRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that MICHAEL CRAWFORD, 35, of Canton, pleaded guilty today before United States District Judge Michael P. Shea in Hartford to one count of production of child pornography.
According to court documents and statements made in court, in July 2012, law enforcement officers discovered that an individual from Connecticut had been posting photographs of children on a Russian file-sharing website. On July 5, 2012, officers executed a state search warrant at CRAWFORD’s residence. On that date, CRAWFORD admitted that he posted images to the Russian website, that he had taken photographs of a three-year-old minor victim and posted them on the site, and that he had exchanged photographs of the minor victim in order to get better photos from others in trade. A subsequent search of CRAWFORD’s email account revealed seven sexually explicit photographs of the minor victim taken by CRAWFORD. CRAWFORD had e-mailed four of the images to other individuals.
In addition to the pictures of the minor victim that he had taken, CRAWFORD’s email account contained approximately 777 images and 24 videos of child pornography.
Judge Shea has scheduled sentencing for July 24, 2013, at which time CRAWFORD faces a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years.
CRAWFORD has been detained since his arrest on January 9, 2013.
This matter is being investigated by Homeland Security Investigations, with assistance from the Connecticut State Police and the Canton Police Department. The case is being prosecuted by Assistant United States Attorneys Sarala V. Nagala and Anastasia E. King.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Buffalo Man Indicted on Production, Receipt, and Possession of Child Pornography ChargesRead the Press Release
BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Buffalo has returned a four-count indictment charging Paul F. Archambault, 26, of Buffalo, N.Y., with production, receipt, and possession of child pornography. Because the defendant has a prior conviction for possession of child pornography, the production of child pornography charge carries a mandatory minimum term of 25 years in prison, a maximum of 50 years, and a fine of $250,000.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that according to the indictment, on or about August 17, 2012, the defendant enticed a minor victim to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct. In addition, Archambault is accused of possessing child pornography on a 16GB SanDisk Micro SD HC card. The defendant has been in custody on a pending case from the Northern District of New York.
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 indictment is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Richard M. Frankel, and Deputy United States Marshals, under the direction of Charles Salina, United States Marshal.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Blue Springs Man Pleads Guilty Illegal Sexual Activity, Child PornographyRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Blue Springs, Mo., man pleaded guilty in federal court today to transporting a minor across state lines for illegal sexual activity and to receiving child pornography over the Internet.
Dennis W. Myers, 53, of Blue Springs, pleaded guilty before U.S. Magistrate Judge John T. Maughmer to the charges contained in a Feb. 20, 2013, federal indictment. Under the terms of today’s plea agreement, Myers must also plead guilty to the charges of statutory sodomy in the first degree and attempted enticement of a child in the Circuit Court of Jackson County, Mo.
Myers formerly served as a youth director at Christ United Methodist Church in Independence, Mo., and at First United Methodist Church in Springdale, Ark.
By pleading guilty today, Myers admitted that he engaged in illicit sexual activity with a 16-year-old victim, identified as Jane Doe #1, and that he transported her across state lines.
Myers met Jane Doe #1 when he was youth director at the First United Methodist Church in Springdale. Myers left his employment with the church and started a DJ business in approximately 1993-94, when Jane Doe #1 was 15 years old. He was training Jane Doe #1 to assist him in that business. At that time, Myers admitted, he and Jane Doe #1 were engaging in some sexual activity. From November 1994 to November 1995, when Jane Doe #1 was approximately 16 years old, Myers transported her from Arkansas to the Kansas City, Mo., area, where they engaged in sexual intercourse.
Years later Myers moved to Blue Springs. Following complaints by two adolescents of inappropriate sexual activity, law enforcement officers searched his home on Sept. 5, 2011, and seized his computer. Forensic examiners found a video of child pornography that had been downloaded from the Internet and viewed on the computer.
Under federal statutes, Myers is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 30 years in federal prison without parole, plus a fine up to $500,000. Under the terms of today’s plea agreement, the Jackson County Prosecutor’s Office will recommend a sentence of 10 years on each of the two state counts to run concurrently with each other and with the federal sentence. A federal sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Katharine Fincham. It was investigated by the Blue Springs, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Alleged Hostage Takers Ordered DetainedRead the Press Release
McALLEN, Texas - Miguel Angel Navarro, 35, of Hidalgo, and Onan Herrera-Sanchez, 24, of Honduras, have been ordered detained pending trial on charges of conspiracy and hostage taking, United States Attorney Kenneth Magidson announced today.
Navarro and Herrera-Sanchez appeared in court for an arraignment and detention hearing just a short time ago before U.S. Magistrate Judge Dorina Ramos, at which time she ordered them held without bond pending further criminal proceedings. A third defendant, Milton Leonel Trevino, 20, of Pharr, is also charged with the same offenses and was previously ordered detained.
All three men were charged in a two-count indictment in April 2013 with hostage taking and conspiracy to commit hostage taking. The indictment alleges they knowingly and intentionally conspired and agreed with each other to seize or detain and threaten to kill, injure or continue to detain another person in order to compel a third person to pay a sum of money as an explicit or implicit condition for the release of the person detained.
According to a federal complaint filed in March 2013, a female victim was kidnapped from a UT-Pan American University parking lot at approximately 7:15 p.m. on Sept. 25, 2012. She was allegedly forced into a vehicle by Herrera-Sanchez. Navarro was driving and Trevino was a passenger, according to the complaint. The victim was allegedly taken and held at Trevino’s home.
That evening, the victim’s father received a phone call demanding a ransom in exchange for his daughter’s release. He was allegedly told he had until Sept. 27, 2012, to deliver $100,000 to a location in Penitas. During a subsequent call, the victim’s father was told his daughter would be killed if they did not “get rid of” the police. The complaint alleges that on Sept. 26, 2012, at approximately 7:30 p.m., Trevino called the victim’s father and told him that he could pick her up at a residence in Pharr. She was released approximately an hour later.
Each man faces up to life in prison and a possible $250,000 fine on each count, upon conviction.
The charges resulting in an indictment were the result of a joint investigation by the FBI and the University of Texas-Pan American Police Department with assistance from other law enforcement agencies.
This case is being prosecuted by Assistant United States Attorney Linda Requénez.
A defendant is presumed innocent unless convicted through due process of law.27-month Sentence for Promoter of Cincinnati Grand PrixRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI –Curtis Boggs, 54, formerly of Harrison, Ohio, was sentenced in U.S. District Court to 27 months in prison, ordered to pay $352,745.21 in restitution and forfeit any assets that he received as proceeds of the crimes he committed as part of a fraudulent scheme he promoted to bring a Grand Prix race to Cincinnati in 2009.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Robert E. Hughes, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), and Kathy Enstrom, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS) announced the sentence handed down today by Chief U.S. District Court Judge Susan J. Dlott.
Boggs pleaded guilty on January 3, 2013 to one count each of wire fraud and money laundering. According to court documents Boggs was employed by an insurance company as an investment advisor from 2000 to 2009. Beginning in approximately October 2008 and continuing through approximately August 2009, Boggs solicited his customers and others to invest in silver and gold, or in a grand prix race, through a corporation called Cincinnati Grand Prix ("CGP"). Boggs admitted that, during that period, he fraudulently obtained investments of at least $352,745 for CGP in exchange for shares in the "stock" of CGP.
“Although some of the money was spent to developing the race, significant sums of money were also spent on the Defendant’s personal expenses,” Assistant U.S. Attorney Tim Mangan wrote in a memorandum filed with the court prior to sentencing.”
On or about October 21,2008, Boggs laundered money derived from the fraud scheme by using $27,232.63 to buy a Lincoln MKX vehicle for his personal use.
A federal grand jury indicted Boggs in June. He was arrested on October 8, 2012 when he was stopped trying to enter the U.S. from Mexico.
Stewart commended the cooperative investigation by FBI and IRS agents, as well as Assistant U.S. Attorney Mangan, who represented the United States in this case.
30 April 2013
Volusia County Armed Career Criminal Pleads GuiltyRead the Press Release
Orlando, Florida - United States Attorney Robert E. O'Neill announces that Christopher Holladay (37, Deland) pleaded guilty today to possession of a firearm by a previously convicted felon and possession with intent to distribute a controlled substance. Holladay faces a mandatory minimum term of 15 years in federal prison, up to a maximum penalty of life in federal prison. A sentencing date has not been set. Holladay was indicted on February 13, 2013.
According to the plea agreement, on August 2, 2012, Holladay, a ten-time previously convicted felon, sold a stolen Remington rifle to an undercover officer and a confidential informant for $350. The rifle had been stolen the day before during a residential burglary. On August 31, 2012, a deputy with the Volusia County Sheriff's Office stopped a vehicle driven by Holladay. A drug detection K-9 alerted to the presence of drugs in the vehicle. During a search of the vehicle, investigators found marijuana and methamphetamine.
Holladay has 10 prior state felony convictions for drug possession, conspiracy to traffic in methamphetamine, grand theft, robbery, burglary, possession of a firearm by a convicted felon, resisting an officer with violence, accessory after the fact, and failure of a career offender to properly register. As a previously convicted felon, Holladay is prohibited from possessing firearms or ammunition under federal law. Because Holladay's prior criminal record includes several violent felonies and a serious drug offense, Holladay qualifies for enhanced sentencing as an Armed Career Criminal under federal law.
This case was investigated by the Volusia County Sheriff's Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Roger B. Handberg.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney Robert E. O’Neill, along with Julie Torres, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.U.S. Attorney Fein Announces ResignationRead the Press Release
New Haven, Conn. – United States Attorney David B. Fein, 52, has announced his resignation, effective May 13, 2013, and his intention to return to the private sector.
Mr. Fein was appointed by President Obama and sworn in as the 50th U.S. Attorney for the District of Connecticut on May 10, 2010. As U.S. Attorney, Mr. Fein created the Connecticut Securities, Commodities and Investor Fraud Task Force, a multi-agency task force focused on matters related to investor fraud, Ponzi schemes, insider trading, FCPA and other financial crimes. He also initiated Project Longevity, a new state-wide anti-violence initiative aimed at reducing gun and gang violence.
“It has been an honor to serve as United States Attorney and to work alongside the fine women and men of this Office and of our partner federal, state and local law enforcement agencies as we serve the people of Connecticut and the country,” said U.S. Attorney Fein. “Personally, it is the right time for me and my family that I move on, but I do so humbly and profoundly grateful for the trust placed in me by the President and the Attorney General.”
As U.S. Attorney, Mr. Fein restructured the Office’s Criminal Division. Previously organized geographically, the Office’s Criminal Division was restructured so that it comprises three program-based units: National Security and Major Crimes, Violent Crimes and Narcotics, and Financial Fraud and Public Corruption.
Significant recent enforcement matters for the National Security and Major Crimes Unit include the extradition of Babar Ahmad and Syed Talha Ahsan, both British citizens who have been charged with terrorism-related offenses; the disabling of a network of hundreds of thousands of computers infected with a malicious software program known as Coreflood, which was the most complete and comprehensive enforcement action ever taken by U.S authorities to disable an international botnet; the prosecution of Hector Natal, who earlier this month was found guilty of committing the March 2011 New Haven arson that killed three individuals, including an 8-year-old boy; the prosecution of a Canadian subsidiary of United Technologies Corporation for violating the Arms Export Control Act in connection with its illegal export to China of U.S.-origin military software used in the development of China’s first modern military attack helicopter; and more than 60 child exploitation matters, including the prosecution of Douglas Perlitz, who was sentenced to more than 19 years in prison for sexually abusing several minor victims over the course of a decade in Haiti, Edgardo Sensi, who was sentenced to 85 years of imprisonment for sexual abusing minor girls in the U.S. and Nicaragua, and Jesse Osmun, who was sentenced to 15 years in prison for sexually abusing young girls while he was a volunteer with the U.S. Peace Corps in South Africa.
The Violent Crimes and Narcotics Unit has focused on dismantling large-scale drug trafficking organizations, prosecuting gang and gun violence, and enforcement actions against prescription drug trafficking. Significant prosecutions include Bridgeport drug trafficker Azibo Aquart and his associates, who were convicted of brutally murdering three Bridgeport residents in August 2005; twenty individuals, including TSA and law enforcement officers, who were involved in a conspiracy to traffic oxycodone from Florida to Connecticut; Operation Bloodline, which targeted narcotics trafficking and gang violence in New Haven and resulted in charges against more than 100 individuals; and the recent arrest on federal and state charges of more than 100 individuals who were allegedly involved in the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut.
Priority enforcement matters out of the Financial Fraud and Public Corruption Unit include the prosecution of numerous individuals who engaged in investor fraud, including hedge fund manager Francisco Illarramendi who defrauded investors and creditors of hundreds of millions of dollars, which is the largest financial fraud case ever prosecuted in the District of Connecticut; the prosecution of dozens of individuals who participated in mortgage fraud schemes that preceded the real estate market crisis; and the investigation and prosecution of “Roll Your Own” smoke shop operators and others who were involved in a scheme to direct illegal contributions into the campaign of a candidate for the U.S. House of Representatives.
The Office’s Civil Division recently negotiated a resolution to its civil enforcement action, which alleged racial profiling and civil rights abuses by members of the East Haven Police Department. The settlement agreement covers comprehensive reforms in seven core areas of policing and put in place an independent monitor.
In 2012, Mr. Fein was appointed Vice Chair of the Attorney General’s Advisory Committee’s White-Collar Crime Subcommittee, where he and his colleagues developed the Justice Department’s Investor Fraud Initiative, which featured six regional summits, including the Northeast Regional Summit held in Stamford in October 2012. In addition, Mr. Fein convened public conferences in Connecticut on Civil Rights, Human Trafficking, Prescription Drug Abuse, and Violent Crime, and a public ceremony honoring Connecticut’s First Responders on the Tenth Anniversary of 9/11.
Prior to his appointment as United States Attorney, Mr. Fein was a partner at the law firm of Wiggin and Dana, where he co-chaired the firm’s White-Collar Defense, Investigations and Corporate Compliance Practice Group and served on the firm’s Executive Committee. From 1999 to 2010, Mr. Fein was Visiting Lecturer in Law at Yale Law School, where he created and co-taught a class on federal criminal investigations and prosecution. Previously, Mr. Fein served as an Associate White House Counsel from 1995 to 1996, where his portfolio included anti-crime initiatives, communications issues, the proposed victims’ rights constitutional amendment, and the Administration’s regulation to combat underage use of tobacco. From 1989 to 1995, Mr. Fein was an Assistant United States Attorney for the Southern District of New York, serving as Deputy Chief of the Criminal Division from 1993 to 1994 and Counsel to the United States Attorney from 1994 to 1995. From 1986 to 1989, Mr. Fein was an associate at Debevoise and Plimpton. He served as a law clerk for the Honorable Frank M. Coffin of the United States Court of Appeals for the First Circuit from 1985 to 1986. Mr. Fein graduated cum laude from Dartmouth College in 1982 and the New York University School of Law in 1985, where he was Order of the Coif and a member of the Senior Board of the N.Y.U. Law Review.
The U.S. Attorney’s Office for the District of Connecticut is charged with enforcing federal criminal laws in Connecticut, and with representing the federal government in civil litigation in the District. The Office employs approximately 64 Assistant United States Attorneys, 45 staff members and 13 contractors at offices in New Haven, Hartford and Bridgeport.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Two Idaho Men Sentenced to Federal Prison in Connection with Aryan Knights CasesRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced today that Christopher John Solders, 26, of Twin Falls, and Joseph Anthony Goulart, 42, of Caldwell, were sentenced to federal prison for distributing methamphetamine. A federal grand jury in Boise charged the men in separate indictments last fall.
Solders was sentenced yesterday to 84 months in prison followed by three years of supervised release for distribution of methamphetamine. Solders pleaded guilty to the charge on February 14, 2013. According to the plea agreement, Solders admitted that he sold methamphetamine on two occasions to a confidential informant working with law enforcement. The first transaction occurred in February 2012 and the second transaction in May 2012.
Goulart was sentenced today to 180 months in prison followed by five years of supervised release. On February 7, 2013, Goulart pleaded guilty to conspiracy to distribute methamphetamine. According to information presented in court, law enforcement agents found approximately one and one-half pounds of methamphetamine during a search of Goulart’s residence in September 2012.
Solders and Goulart were sentenced by the Honorable John C. Coughenour, U.S. District Judge for the Western District of Washington, at the federal courthouse in Boise.
The Solders and Goulart cases are part of the Aryan Knights investigation in which 23 people were charged as a result of a long term investigation by the Treasure Valley Metro Violent Crime Task Force. The investigation began when the task force focused on illegal drug distribution by the “Aryan Knights,” a gang active both in prison and on the streets throughout Idaho. Through the investigation, law enforcement agents identified Aryan Knights gang members who were trafficking methamphetamine, as well as associates of the gang who were the source of that methamphetamine.
The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. The joint investigation also included the Organized Crime and Drug Enforcement Task Force (OCDETF), a cooperative law enforcement effort of the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service.
The cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Two Former Special Agents with Department of Commerce Office of Inspector General Plead Guilty to Submitting False Claims for Relocation Expenses and Time and Attendance FraudRead the Press Release
Greenbelt, Maryland - Two former Special Agents with the U.S. Department of Commerce, Office of Inspector General, Rachel Ondrik, age 35, of Frederick, Maryland, and Kirk Yamatani, age 38, of Ashburn, Virginia, pleaded guilty today to submitting false claims for relocation expenses. Ondrik and Yamatani resigned their positions with the Department of Commerce on March 29, 2013, as required by their plea agreements.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Todd Zinser, Inspector General for the U.S. Department of Commerce (DOC).
“Today’s announcement is the result of significant efforts by the U.S. Attorney’s Office, the FBI and my office to hold law enforcement agents accountable for years of criminal misconduct,” said Inspector General Todd Zinser of the U.S. Department of Commerce. “In addition to the fraud perpetrated on the U.S. taxpayers, these now former employees also retaliated by carrying out a destructive campaign of disparagement and false allegations against the Office of Inspector General (OIG).” Mr. Zinser added, “I commend the U.S. Attorney’s Office and the FBI for their diligent efforts and perseverance in conducting this investigation.”
According to their plea agreements, in 2009, Ondrik and Yamatani, transferred from the DOC OIG’s Atlanta, Georgia office to Washington, D.C. Ondrik and Yamatani were authorized relocation benefits, including a househunting trip, en route travel, and temporary quarters living expenses. Emails between Ondrik and Yamatani show that both agents were aware of the rules governing their relocations and reimbursements for related expenses, yet both attempted to secure payment from the DOC in amounts significantly exceeding what was authorized and submitted claims for relocation related trips they did not take.
For example, Ondrik and Yamatani claimed $4,058.75 and $3,589, respectively for househunting trips, when in fact, they did not make a househunting trip during the time claimed. Ondrik and Yamatini each also falsely claimed more than $1,500 for travel to their new duty station and falsely claimed reimbursement for temporary quarters living expenses in an amount that was approximately three times what they were authorized. In all, Ondrik and Yamatani each submitted at least three false vouchers seeking reimbursement for $39,563.25 and $36,305.57, respectively. When Ondrik and Yamatani’s claims for reimbursement were denied as being over what the travel regulations allowed, Ondrik and Yamatani persisted in their claims. On several occasions between 2009 and 2011, Ondrik and Yamatani reaffirmed the earlier false statements in their vouchers and made false statements regarding the circumstances of their claims for reimbursement.
Between June 2009 and February 2011, Ondrik and Yamatani also committed time and attendance fraud against DOC OIG, claiming to have worked hours that they did not actually work. The loss to the government attributable to each defendant’s conduct was approximately $14,000.
The defendants and the government have agreed that if the Court accepts the plea agreement Ondrik and Yamatani will each be sentenced to a term of probation and ordered to pay a fine of $28,000. In addition, each defendant will be required to pay $14,000 in restitution to the government. U.S. Magistrate Judge Charles B. Day has scheduled sentencing for June 19, 2013 at 2:30 p.m.
United States Attorney Rod J. Rosenstein praised the FBI and DOC OIG for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Adam K. Ake and Robert K. Hur, who are prosecuting the case.
Two Canton Men Accused of Participating in Burglary RingRead the Press Release
Two Canton men were named in an eight-count indictment, accused of allegedly participating in numerous burglaries and thefts of coins, jewelry, silver bars from businesses and then selling the stolen goods in Ohio, Pennsylvania, and Illinois, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Nicholas Moore, age 23, and Arsenio Smith, age 25, are charged with conspiracy, transportation of stolen goods and sale or receipt of stolen goods across state lines.
If convicted, their sentence will be determined by the Court after review of factors unique to this case, including prior criminal record, if any, role in the offenses and the unique characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Teresa Dirksen following an investigation by the Uniontown Police Department/Lake Township and Federal Bureau of Investigations in conjunction with the Salem Police Department, Stark County Sheriff’s Office, Lexington, Kentrucky Police Department, Richland County Sheriff’s Office, Mansfield Police Department, Stow Police Department, Springfield Police Department, Wooster Police Department, Jackson Township Police Department, Uniontown Police Department, and Robinson Township Police Department,
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Three Fraud Defendants Who Met in Prison Sent Back to Serve New Sentences in $3.6 Million Ponzi SchemeRead the Press Release
CHICAGO — Three serial fraud defendants who met while incarcerated for unrelated crimes at the federal prison in Oxford, Wis., and then, after they were released, joined together in a Ponzi-type investment fraud scheme that caused approximately 100 victims to lose more than $3.6 million have been sentenced for their latest crimes. Two of the defendants purported to run a business, Sundown Entertainment, Inc., that bought and sold films and comic-book rights and together raised more than $7 million from approximately 150 investors, while the third defendant entered the scheme later and lulled victims with false assurances about their investments.
U.S. District Court Judge Virginia Kendall last week sentenced DANIEL PARRILLI, 62, formerly of Carol Stream, to 70 months in prison, and finalized the sentencing of JOHN LAUER, 48, formerly of Chicago, who received a 31-month prison term. The lead defendant, CHRISTOPHER ANDERSEN, 57, formerly of Downers Grove, was sentenced last fall to 95 months in prison. All three had pleaded guilty to fraud charges that were brought against them in 2010. Parrilli was ordered to pay more than $3.65 million in restitution and to begin serving his sentence on Aug. 1. Lauer, was ordered to pay $457,367 in restitution and to surrender on June 12. Anderson, who is serving his sentence, was ordered to pay restitution totaling more than $3.7 million.
In connection with Parrilli and Andersen’s sentencings, the government argued that the fraud scheme “had a terrible impact on victims, who in many cases depleted their 401K funds or their college savings, or took out loans against their homes in order to invest with the defendants.”
Andersen had committed essentially the same crime previously when he was convicted in 2001 of offering and selling fraudulent investments in the form of promissory notes. He continued to engage in additional fraud schemes while the charges were pending in both cases and even after he pleaded guilty in the Sundown case. Parrilli had been imprisoned previously for bank fraud and fraudulently using aliases to obtain credit cards. When they teamed-up in the Sundown Entertainment fraud scheme, they promised investors returns starting at 10 percent to as much as 150 percent over a period of months to as short as a few days. Lauer joined Andersen and Parrilli after they had already fraudulently obtained most of the funds they raised from victims, and he provided lulling assurances to nervous victims that their investments were safe. Lauer also admitted engaging in a separate investment fraud scheme involving the purported purchase of a surety bond to obtain the release of bank funds from the Cayman Islands.
Lauer at one time was the director of risk management and benefits for the Chicago Housing Authority when he engaged in a fraud scheme involving the fraudulent offer and sale of investments in so-called prime bank instruments that resulted in losses of more than $20 million, including about $15 million in CHA pension funds. Lauer admitted engaging in multiple, separate fraud schemes and met Andersen and Parrilli while all three were serving their sentences at the Oxford prison. Lauer was on supervised release when he assisted them in the later stages of the Sundown Ponzi scheme.
The sentences were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The U.S. Securities and Exchange Commission assisted in the investigation.
The government was represented by Assistant U.S. Attorneys Edward Kohler and Shoshana Gillers.
The investigation falls under the umbrella of the Financial Fraud Enforcement Task Force, which includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit: StopFraud.gov.
Thirteen Individuals Charged in Manhattan Federal Court in Connection with Alleged International Sex Trafficking and Prostitution NetworkRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and James T. Hayes, Jr., the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), announced today the arrests of 13 individuals for their alleged roles in a sex trafficking and prostitution network, which exploited dozens of women, some of whom were trafficked from Mexico to New York and forced to engage in prostitution. Thirteen defendants were charged in a criminal Complaint that was unsealed today with: sex trafficking; interstate transportation for prostitution; use of interstate facilities to promote a prostitution enterprise; obstruction of justice; possession of child pornography; and illegal reentry.
Nine of the defendants charged were taken into custody today. Two defendants, ISAIAS FLORES-MENDEZ and DAVID VASQUEZ-MEDINA, were already in federal custody on charges of illegal reentry. Another defendant, CARLOS GARCIA-DE LA ROSA, was already in custody on state charges and will be transferred to federal custody. One defendant, JUANA LUCAS-SANCHEZ, was arrested this afternoon in Delaware, and will be presented in federal court in Delaware tomorrow. All other defendants arrested today will be presented in Manhattan federal court before U.S. Magistrate Judge James L. Cott tomorrow afternoon. One of the defendants charged in the Complaint, PANFILO FLORES-MENDEZ, remains at large.
In connection with today’s arrests, HSI executed search warrants on six locations, including four brothels in Yonkers, Poughkeepsie, Newburgh, and Queens.
Manhattan U.S. Attorney Preet Bharara said: “With promises of a better life, the members of this alleged sex trafficking and prostitution ring lured their unsuspecting victims to the United States and then consigned them to a living hell – forcing them to become sex slaves living in abhorrent conditions, and using threats, verbal abuse, and violence – sexual and otherwise – when they resisted and even sometimes when they didn’t. With their arrests today, the barbaric conduct in which these defendants allegedly engaged in order to make a profit has now been put to a stop, and they will be prosecuted for their alleged crimes and the women they enslaved will be able to put their lives back together.”
ICE HSI Special Agent-in-Charge James T. Hayes, Jr., stated: “The arrests today move the United States closer to blockading the repugnant sex trafficking corridor that organizations like the one allegedly operated by Isaias Flores-Mendez and his cohorts use to smuggle innocent victims between Tenancingo, Mexico and New York City. HSI will vigorously target and prosecute leaders and members of sex trafficking organizations who seek to prey on the innocence and trust of young women and children in order to enslave them for profit and devote all necessary resources to rescuing victims of sex trafficking and exploitation.”
According to the allegations in the Complaint, which was filed in Manhattan federal court:
Since at least 2008, nine of the defendants charged in the Complaint have been engaged in a criminal prostitution and sex trafficking enterprise. The enterprise is part of a larger network of sex traffickers who generally operate between Tenancingo, Mexico, and New York, among other places. The typical pattern and practice of this network is to lure women to the United States by, among other things, engaging them in romantic relationships and promising a better life in New York. After the women are smuggled from Mexico to New York, they are forced to begin working as prostitutes against their will under abhorrent conditions. The victims are often beaten, threatened with physical harm to themselves and their family members, sexually assaulted, and verbally abused. In a typical day, a Mexican sex trafficking victim in New York has sexual intercourse with 20 to 30 customers. Each customer usually pays $30-$35 for 15 minutes of sex. Of that $30-$35, $15 typically goes to either the driver who transported the woman to the client, or to the residential brothel where the woman worked. The other $15 goes to the victim, who is then typically forced to give all of it to the trafficker. Traffickers typically provide their victims with condoms and birth control pills. In some cases, if a victim is suspected of being pregnant, her trafficker makes her take a drug to induce a miscarriage.
In September 2006, a woman (“Victim-1”) living in Mexico with her young child was smuggled into the United States and brought to Queens, New York, by ISAIAS FLORES-MENDEZ and BONIFACIO FLORES-MENDEZ. Once in New York, Victim-1 was made to sleep on the floor with her child. Thereafter, ISAIAS FLORES-MENDEZ, BONIFACIO FLORES-MENDEZ, and JUANA LUCAS-SANCHEZ used threats, verbal abuse, and violence to force her to engage in prostitution against her will. For example, on one occasion, when Victim-1 refused to work as a prostitute, ISAIAS FLORES-MENDEZ pushed her and her young child outside on a cold winter night, locked the door, and refused to let her back in. On other occasions, he beat her. Victim-1 was forced to engage in prostitution against her will on a daily basis, often servicing more than 20 customers per day in brothels located in Manhattan, the Bronx, Brooklyn, and Yonkers, as well as in Maryland, Connecticut, New Jersey, and Pennsylvania. On one occasion, when ISAIAS FLORES-MENDEZ, BONIFACIO FLORES-MENDEZ, and JUANA LUCAS-SANCHEZ suspected that Victim-1 was pregnant, they forced her to take medication to induce a miscarriage. ISAIAS FLORES-MENDEZ took all of the money Victim-1 earned.
In late 2006 or early 2007, DAVID VASQUEZ-MEDINA told his then-girlfriend (“Victim-2”) that she should work as a prostitute and that the women he drove to brothels and to customers’ residences to engage in prostitution made 200 dollars or more a day. Victim-2 refused. VASQUEZ-MEDINA pressured Victim-2 to work as a prostitute, and when she did not immediately comply, he became angry and verbally abusive. As a result, Victim-2 relented to his demands. After approximately two weeks, Victim-2 pleaded with VASQUEZ-MEDINA to let her get other jobs to make money, and to stop making her work as a prostitute. VASQUEZ-MEDINA beat her, threatened to take her child, and told her she had no choice. For approximately two years, Victim-2 worked as a prostitute against her will, and VASQUEZ-MEDINA kept the proceeds. On some occasions, he drove Victim-2 to farms in New Jersey where she had sex with approximately 25 men per day. On other occasions, VASQUEZ-MEDINA made arrangements for her to work in other states. Over time, VASQUEZ-MEDINA had Victim-2 make her own work arrangements and he called the locations where she worked to track how much money she earned so he could ensure that she was turning all of the proceeds over to him.
The participants in this criminal business enterprise served different functions, operating brothels, manning the brothels, driving victims to brothels and to customers’ residences for the purpose of engaging in prostitution, dispatching drivers, passing out chica cards – small cards that are handed out on the street to solicit customers for the enterprise – and recruiting and overseeing the women who work, or are forced to work, as prostitutes. In connection with this prostitution-sex trafficking enterprise, in April 2013, BONIFACIO FLORES-MENDEZ enticed at least one woman to travel from New Jersey to New York for the purpose of prostitution.
In October and November 2012, BONIFACIO FLORES-MENDEZ and MIGUEL ANGEL CHE-VELIZ, working under the direction of ISAIAS FLORES-MENDEZ, found and destroyed GPS tracking devices, which law enforcement agents had placed on vehicles used by members of the prostitution-sex trafficking enterprise.
One member of the prostitution-sex trafficking enterprise, CARLOS GARCIA-DE LA ROSA, is also charged with possession of child pornography, which he caused to be produced by a 14-year-old girl with whom he was engaged in a sexual relationship.
Two members of the prostitution-sex trafficking enterprise are also charged with illegal reentry.
A chart containing the ages, residency information, and charges against the defendants, as well as the maximum penalties they face is attached.
Mr. Bharara praised the outstanding investigative work of ICE HSI. He also thanked the New York City Police Department for its assistance in the early stages of the investigation, and noted that the investigation is continuing.
This prosecution of this case is being overseen by the Office’s Organized Crime Unit. Assistant United States Attorneys Amanda Kramer and Rebecca Mermelstein are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Click here to view chart(s)
U.S. v. Isaias Flores-Mendez, et al. Complaint
St. Francis Woman Guilty of Making False Statements to A Federal AgencyRead the Press Release
United States Attorney Brendan V. Johnson announced that Candice Waln, age 34, of St. Francis, South Dakota, appeared before U.S. District Judge Roberto A. Lange on April 30, 2013, and pled guilty to Making False Statements to a Federal Agency. The maximum penalty upon conviction is 5 years in custody, a $250,000 fine, or both; 3 years of supervised release; and $100 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on November 9, 2012, when federal agents arrived at Waln’s residence to serve an arrest warrant on an individual. Waln told the agents that individual was not present and was in another community when in fact he was actually hiding nearby.
The investigation was conducted by the U.S. Marshal’s Service and 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 22, 2013. The defendant was released pending sentencing.
Spokane Men Charged in Vehicle Fraud and Identity Theft SchemeRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington announced that a federal grand jury returned an 18 count indictment against Tam Quang Do, age 36, and Ming Quang Do, age 39. The indictment charges them with Conspiracy to Commit Wire Fraud, Wire Fraud, Odometer Fraud, and Aggravated Identity Theft. The fraud-related charges carry a maximum twenty (20) year term of imprisonment, with the Aggravated Identity Theft charge carrying a consecutive two-year term.
The indictment generally alleges that Tam Quang Do and Ming Quang Do purchased high-mileage vehicles in Eastern Washington and Northern Idaho. It is alleged that they fraudulently reset the vehicle odometers to reflect a significantly lower mileage total and thereafter created and utilized false and fraudulent sales advertisements about the vehicles' mileage, condition, and ownership history via the internet website "craigslist.com." It is also generally alleged that they provided the buyers with Washington and Idaho vehicle documents containing bogus information, the original owners' identification information, and forged signatures. It is alleged that Tam Quang Do and Ming Quang Do utilized a grocery parking lot located at 1616 W. Northwest Blvd. and a shopping plaza located at 1704 W. Wellesley Avenue in Spokane, Washington to negotiate and conduct many of the vehicle sales.
The public is encouraged to contact the U.S. Secret Service at (509) 353-2532 if they, or anyone they know, may have fallen victim to this or a similar scheme in the last six (6) to eighteen (18) months. This case was investigated by the United States Secret Service, Spokane County Sheriff's Office, and Kootenai County Sheriff's Office. The case is being prosecuted by Assistant United States Attorney Sean T. McLaughlin.
An Indictment Contains Allegations That a Defendant Has Committed a Crime. Every Defendant Is Presumed Innocent Unless and Until Proven Guilty Beyond a Reasonable Doubt.
Sparta Man Sentenced for Theft of Federal FundsRead the Press Release
Timothy A. Restoff, 35, of Sparta, Illinois, was sentenced on April 25, 2013, in federal court in Benton on a charge of Theft of Government Funds, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Restoff received a sentence of five years of probation and was ordered to pay restitution of $12,802.28.
Through the United States Railroad Retirement Board (RRB), an agency and department of the United States, unemployment benefits are awarded to railroad employees who are unemployed. Evidence showed that Restoff concealed his employment status and was working during the time he was being paid RRB unemployment benefits. This time period spanned May 13, 2009, until March 3, 2010, during which Restoff fraudulently received $12,802.28 in undeserved benefits.
The case was investigated by agents of the Railroad Retirement Board, Office of Investigations. The case is being prosecuted by Assistant U.S. Attorney Liam Coonan.
If you suspect or know of an individual or company that is committing fraud against any U.S. Railroad Retirement Board program, you may report this to the U.S. Railroad Retirement Board’s Office of Inspector General by calling 800.772.4258 or by e-mailing a complaint or information to: [email protected].
Rosebud Man Guilty of Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that Laun McCloskey, age 19, of Rosebud, South Dakota, appeared before U.S. District Judge Roberto A. Lange on April 30, 2013, and pled guilty to Abusive Sexual Contact. The maximum penalty upon conviction is life in custody, a $250,000 fine, or both; life of supervised release; and $100 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on March 16, 2013, when McCloskey had sexual contact with a minor.
The investigation was conducted by the Federal Bureau of Investigation and 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 22, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Ponemah Man Pleads Guilty to Involuntary ManslaughterRead the Press Release
MINNEAPOLIS—Yesterday in federal court in Duluth, a 46-year-old man from the Red Lake Indian Reservation community of Ponemah pleaded guilty in connection with the August 19, 2012, death of Kaishauna Thunder. On April 29, 2013, Gordon Dean Johnson pleaded guilty to one count of involuntary manslaughter. Johnson, who was indicted on January 8, 2013, entered his plea before United States District Court Chief Judge Michael J. Davis.
In his plea agreement, Johnson admitted that during the early morning of August 19, 2012, he killed Thunder without malice. Specifically, Johnson was operating a motor vehicle in a reckless manner, while under the influence of alcohol, when he struck Thunder, who was walking alongside State Highway 1.
For his crime, Johnson faces a potential maximum penalty of eight years in prison. Judge Davis will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Federal Bureau of Investigation and the Red Lake Tribal Police Department. It is being prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney's Office.