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1 May 2013
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.
Philadelphia Woman Sentenced for Illegally Collecting Her Dead Relative's BenefitsRead the Press Release
PHILADELPHIA - Beverly Brooker, 65, of Philadelphia, PA was sentenced today to 12 months and one day in prison for a scheme to collect Retirement Insurance Benefits intended for her deceased great aunt. Brooker pleaded guilty on November 7, 2012 to theft of government funds and Social Security representative payee fraud. Brooker concealed her great aunt’s death from the Social Security Administration by becoming representative payee for her aunt and submitting yearly false declarations to the Social Security Administration to account for how she “spent” the money on her great aunt. For each month of her fraud, which spanned from her aunt’s death in January 1992 until her fraud was discovered in the summer of 2012, Brooker received a check by mail that she then cashed and used to her own benefit. Her fraud resulted in a loss to the government of approximately $261,653.00.
In addition to the prison term, U.S. District Court Judge Legrome Davis ordered restitution in the amount of $261,653, a $200 special assessment, and three years of supervised release.The case was investigated by the Social Security Administration Office of Inspector General, and the United States Postal Inspection Service. It was prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Pair Sentenced for Removing Copper from Radio TowersRead the Press Release
Two people were sentenced for the malicious destruction of federally-licensed communications lines, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Thomas M. Carbone, 28, of North Royalton, was sentenced to 27 months in prison while Katie M. Stanton, 23, of Cleveland, was sentenced to eight months under house arrest. They were ordered to pay $10,971 in restitution.
On or about August 17 to 18, 2012, Carbone and Stanton unlawfully entered the property of Radio One on Ridge Road in North Royalton, Ohio, and willfully and maliciously destroyed and removed copper material from four radio-station towers situated on the property, according to court documents.
This unlawful removal of copper depleted the signal strength of the supported radio station, thereby impeding the station’s ability to broadcast emergency messages, according to court docuements.
This case is being prosecuted by Assistant United States Attorneys Thomas E. Getz and M. Kendra Klump. The case was investigated by the Cleveland Division of the Federal Bureau of Investigation and the North Royalton Police Department.
Owner of Investment Firm Is Charged with Securities Fraud for Orchestrating A $4.7 Million Ponzi SchemeRead the Press Release
CHARLOTTE, N.C. – The owner of a North Carolina investment firm has been charged with securities fraud for orchestrating a Ponzi scheme that solicited victims to invest millions in the foreign currency market (“FOREX”), announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
North Carolina Secretary of State Elaine F. Marshall and John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division join U.S. Attorney Tompkins in making today’s announcement.
On April 18, 2013, a federal criminal indictment charged James H. Mason, 66, of Graham, N.C., with one count of securities fraud in connection with a $4.7 million foreign currency Ponzi scheme. According to allegations contained in the indictment, beginning in 2010 and continuing through March 28, 2013, Mason executed the Ponzi scheme by inducing victims to invest with his investment companies, JHM Forex Only Pool and Forex Trading at Home Association, and other related entities, for the supposed purpose of investing in Over-the-Counter (“OTC”) foreign currency exchange.
The indictment alleges that Mason engaged in a scheme and artifice to defraud victims by making a series of false and fraudulent representations, omissions of material facts and deceptive half-truths. Specifically, Mason falsely claimed to victims that he had over 35 years of experience in commodity futures and options trading, when in fact, Mason had no such experience at all, according to the indictment. Also, Mason lulled his victims into a false sense of security by falsely projecting substantial returns of their investments. Mason solicited at least 500 victims to invest over $4.7 million. According to allegations in the indictment, rather than investing it as promised, Mason simply deposited victim money into various bank accounts he controlled and used a substantial amount of investor money to pay for personal and business expenses, real estate, cars and other expenses unrelated to any foreign exchange. In addition, the indictment alleges that Mason diverted most of the rest of his victims’ money to make “Ponzi” payments to other victims.
The criminal indictment also alleges that, throughout the course of this scheme, Mason put only a portion of investor money into foreign currency exchange. According to allegations contained in the indictment, Mason lost essentially all the money he did invest while conducting FOREX trading, thus losing even the minority of funds that he did trade. Mason failed to disclose his actual trading results to his victims, and instead made false oral representations and provided bogus statements to clients, fraudulently reporting profits. The indictment alleges that in order to induce individuals to further invest in his fraudulent foreign currency commodity pool, Mason established a website so that investors could access their accounts online. These online investor accounts depicted that investors were making money through successful FOREX trading and had, in many cases, significant amounts of money in their accounts. As alleged in the indictment, profits stated on individual investor accounts were false and, in many cases, there was no actual money in the victims’ accounts.
Mason has been in local federal custody since April 15, 2013. He has been charged with one count of securities fraud which carries a maximum prison term of 20 and a $5 million fine, plus restitution to investor victims of the scheme.
The charges contained in the indictment are allegations. The defendant is presumed innocent unless and until he is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the North Carolina Secretary of State, Securities Division with assistance from the FBI, Charlotte Division. U.S. Attorney Tompkins also acknowledges the invaluable assistance of the Commodities Futures Trading Commission in this case.
The prosecution is being handled by Special Assistant United States Attorney Kevin M. Harrington and Assistant U.S. Attorney Kurt W. Meyers of the Western District of North Carolina.
Mr. Harrington is an Enforcement Attorney with the North Carolina Department of Secretary of State, Securities Division, and was appointed to serve as a Special Assistant United States Attorney (SAUSA) with the U.S. Attorney’s Office in Charlotte in September 2011. The SAUSA position is reflection of the partnership between the North Carolina Securities Division and the United States Attorney that helps ensure the effective and vigorous prosecution of white collar criminals, particularly in the area of securities fraud.
The President’s Financial Fraud Enforcement Task Force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit www.stopfraud.gov.
Ojo Encino, N.M., Man Pleads Guilty to Using a Firearm During an AssaultRead the Press Release
ALBUQUERQUE – Permanuel Castillo, 22, an enrolled member of the Navajo Nation who resides in Ojo Encino, N.M., pleaded guilty this morning to using a firearm during a crime of violence, an assault with a dangerous weapon which resulted in serious bodily injury, under a plea agreement with the U.S. Attorney’s Office.
Castillo pled guilty to a charge arising out of the Sept. 27, 2012 shooting of his girlfriend. According to court filings, on that day, New Mexico State Police officers responded to a call regarding a shooting at Castillo’s Ojo Encino residence, which is located on the Navajo Indian Reservation. During questioning, Castillo initially claimed that his girlfriend had been the victim of a drive-by shooting. After further questioning, Castillo admitted shooting the victim multiple times in the chest but claimed that it was an accident. Castillo was arrested on tribal charges by officers of the Navajo Division of Public Safety and held in tribal custody.
Castillo was arrested on federal assault charges on Oct. 24, 2012, and has been in federal custody since that time. Castillo subsequently was charged in a three-count indictment with (1) assault with a dangerous weapon, (2) assault resulting in serious bodily injury, and (3) use of a firearm during a crime of violence.
During this morning’s proceedings, Castillo pled guilty to Count 3 of the indictment, charging him with using a firearm during a crime of violence, and admitted assaulting the victim by shooting her with a rifle. As a result of the assault, the victim sustained three gunshot wounds to the chest.
Castillo remains in federal custody pending his sentencing hearing, which has yet to be scheduled. At sentencing, Castillo faces a ten year prison sentence to be followed by not more than three years of supervised release. Counts 1 and 2 of the indictment will be dismissed after Castillo is sentenced.
This case was investigated by the Albuquerque office of the FBI, the Crownpoint office of the Navajo Nation Division of Public Safety and the New Mexico State Police and is being prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project which is sponsored by the Justice Department’s Office on Violence Against Women, and seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.Ocean County, N.J., Attorney Admits Income Tax Evasion and Failing to Pay Payroll TaxesRead the Press Release
TRENTON, N.J. – An Ocean County, N.J., attorney admitted today to evading federal income taxes, after hiding assets in an attorney trust account in his wife’s name when he was already in debt to the IRS, U.S. Attorney Paul J. Fishman announced.
Lee Gottesman, 57, of Toms River, N.J., entered his guilty plea to two counts of the Indictment against him – federal income tax evasion and failing to pay payroll taxes for the employees of his law firm – before U.S. District Judge Freda L. Wolfson in Trenton federal court.
According to documents filed in the case and statements made in court:
At the time he committed the crimes, Gottesman operated a law firm in Toms River, where he employed two other attorneys and a legal secretary. In 2002, the IRS filed a levy on Gottesman’s assets because of unpaid taxes. Gottesman then opened a sub-account, within his attorney trust account, in the name of his wife. His wife had never been a legal client of his.
Gottesman ran nearly all of his personal and business expenses through the account, closing all other business and personal accounts held in his name. His payments from the account included more than $90,000 in mortgage payments for his home; more than $17,000 in household expenses, including maintenance on his pool, landscaping services and construction costs; and thousands of dollars in other personal expenses, such as life insurance premiums, auto body repair work and personal credit card payments. The scheme allowed Gottesman to avoid paying personal income taxes on the hidden income.
Gottesman also withheld payroll and other taxes from his employees’ pay, but never filed the required forms or turned the withheld payments over to the IRS.
Gottesman specifically admitted he did not pay all his personal income taxes owed for 2006 or payroll taxes for 2009, but will be responsible for paying all taxes owed from 2006 to the present.
The tax evasion and payroll tax counts to which Gottesman pleaded guilty each carry a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Aug. 21, 2013.
U.S. Attorney Fishman credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Zach Intrater of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Salvatore Alfano Esq., Bloomfield, N.J.Gottesman, Lee Indictment
New York Woman Sentenced for Scheme to Defraud Consumer Product ManufacturersRead the Press Release
A New York woman was sentenced to 19 months in prison today for her role in a scheme to defraud consumer product manufacturers, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and the U.S. Attorney’s Office for the Southern District of Indiana.
Dina Wein Reis, 49, was sentenced by U.S. District Judge Jane E. Magnus-Stinson in the Southern District of Indiana and ordered to pay restitution of $5,678,190 and a fine of $1 million.
Reis pleaded guilty on May 19, 2011, to a criminal information charging her with one count of conspiracy to commit wire fraud.
According to plea documents, between June 2003 and July 2006 Reis owned and operated a marketing business based in New York and used fraudulent means to obtain consumer goods at discounted prices from manufacturers and distributors of consumer products. Participants in the scheme “cold-called” executives at large consumer product companies to solicit their products, falsely promising that if each manufacturer sold its products to Reis, the products would be distributed to a variety of outlets that were typically difficult for these manufacturers to reach on their own. The scheme included a marketing venture called the “Goody Pak Program,” which distributed products free of charge to schools for school fundraisers and helped generate marketing information for these manufacturers.
Reis admitted that she negotiated a discount from the manufacturers based on the possibility of future profitable business for the manufacturers arising from her marketing efforts when, in fact, she made few efforts and sold the majority of the products to wholesalers for a profit. As a result, a manufacturer in Indiana lost $180,000, and a Missouri manufacturer lost $500,000. Reis also agreed through her plea agreement to make restitution to manufacturing companies not specifically named in the information.
The cases were investigated by the FBI and the U.S. Marshals Service. The cases were prosecuted by Trial Attorney Matthew Klecka of the Criminal Division’s Asset Forfeiture and Money Laundering Section, formerly a Trial Attorney in the Division’s Fraud Section, and Assistant U.S. Attorney Winfield Ong of the Southern District of Indiana.
New York Man Pleads Guilty in Massachusetts to Theft of Government Property and Money Laundering in Stolen Identity Refund Fraud SchemeRead the Press Release
Odalis Castillo-Lopez, 41, a citizen of the Dominican Republic and a resident of New York, pleaded guilty today to theft of government property and money laundering in connection with a scheme to cash U.S. Treasury tax refund checks fraudulently obtained using the stolen identities of Puerto Rican residents. The guilty plea was announced by the Justice Department, the Internal Revenue Service – Criminal Investigation (IRS-CI), Homeland Security Investigations and the U.S. Secret Service.
At a hearing before U.S. District Court Chief Judge Patti B. Saris in the District of Massachusetts, Castillo pleaded guilty to theft of government property and money laundering. According to the documents filed in this case, the criminal conduct involved the attempted negotiation of U.S. Treasury income tax refund checks obtained in the name of stolen identities. Castillo faces a maximum potential sentence of 10 years in prison and a fine of up to $250,000 for the theft of government property charge, and a maximum of 20 years in prison and a fine of up to $500,000 for the money laundering charge. Sentencing is scheduled for May 30, 2013.
This investigation was conducted jointly by IRS-CI, Homeland Security Investigations and the U.S. Secret Service in Boston. The prosecution is being handled by Senior Litigation Counsel Corey J. Smith of the Justice Department’s Tax Division.
Related Materials:
United States v. Odalis Castillo-Lopez
Indictment (PDF)
New York Man Pleads Guilty to Theft of Government Property and Money Laundering in Stolen Identity Refund Fraud SchemeRead the Press Release
BOSTON – A New York man pleaded guilty today to theft of government property and money laundering in connection with a scheme to cash U.S. Treasury tax refund checks fraudulently obtained using the stolen identities of Puerto Rican residents.
Odalis Castillo-Lopez, 41, a citizen of the Dominican Republic and legal permanent U.S. resident, pleaded guilty before U.S. District Court Chief Judge Patti B. Saris to theft of government property and money laundering. According to the documents filed in the case, the criminal conduct involved the attempted negotiation of U.S. Treasury income tax refund checks obtained in the name of stolen identities.
For the theft of government property charge, the statutory maximum penalty is 10 years in prison and a fine of up to $250,000. The statutory maximum penalty for the money laundering charge is 20 years in prison and a fine of up to $500,000. Chief Judge Saris scheduled sentencing for May 30 at 9:30 a.m.
United States Attorney Carmen M. Ortiz; Kathryn Keneally, Assistant Attorney General for Tax Division; William Offord, Special Agent in Charge of U.S. Internal Revenue Service Criminal Investigations; Bruce M. Foucart, Special Agent in Charge of ICE’s Homeland Security Investigations in Boston; and Steven D. Ricciardi, Special Agent in Charge of U.S. Secret Service in Boston made the announcement today. Senior Litigation Counsel Corey J. Smith of the Justice Department’s Tax Division is prosecuting the case.
New Jersey Couple Arrested, Federally Charged with Abusing Their Children in Cruel “Training” ProgramRead the Press Release
NEWARK, N.J. – A U.S. Army major surrendered to federal agents following his wife’s arrest at their Mount Holly, N.J., home this morning on charges that they abused their children through neglectful and cruel acts, including by breaking their bones, denying them medical attention, withholding water and force-feeding them hot sauce, U.S. Attorney Paul J. Fishman announced.
Carolyn Jackson, 35, and John E. Jackson, 37, formerly of the Picatinny Arsenal Installation in Morris County, N.J., are charged in a 17-count indictment with one count of conspiracy to endanger the welfare of a child, 13 counts of endangering the welfare of a child and three counts of assault.
The case falls under federal jurisdiction because the crimes were allegedly committed on a military base. The defendants are scheduled to appear this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.
“Carolyn and John Jackson are charged with unimaginable cruelty to children they were trusted to protect, said U.S. Attorney Fishman. “The crimes alleged should not happen to any child, anywhere, and it is deeply disturbing that they would happen on a military installation. Along with the FBI, we will continue to seek justice for our communities' most vulnerable victims.”
According to the indictment unsealed today:
From approximately August 2005 until April 23, 2010, Carolyn and John Jackson conspired to engage in a constant course of neglect and cruelty towards three children they fostered and then adopted, one of whom died in May 2008. The Jacksons told their three biological children not to report the physical assaults to others, saying that the punishments and disciplinary techniques were justified, as they were “training” the adopted children how to behave.
After John Jackson was informed by a family friend that one of the children had revealed the abuse in the Jackson household, John Jackson reported the breach to Carolyn Jackson, who retaliated against that child with multiple beatings with a belt.
The Jacksons physically assaulted their children with various objects, causing two children to sustain fractured bones, for which the Jacksons failed to seek prompt medical attention.
They also withheld proper medical care for their adopted children, withheld sufficient nourishment and food for two of their children, withheld adequate water from two of their children, and, at times, prohibited them from drinking water altogether. The Jacksons even punished an adopted child they caught sneaking food or water, and required one of their biological children to prevent that child from drinking out of sinks and toilets.As another form of punishment, Carolyn and John Jackson forced two of the children to consume food intended to cause them pain and suffering, variously including red pepper flakes, hot sauce and raw onion. They also caused one child to ingest excessive sodium or sodium-laden substances while being deprived of water, leading to a life-threatening condition.
All of the children are currently in the custody of the New Jersey Division of Child Protection and Permanency.
If convicted, Carolyn and John Jackson each face a maximum potential penalty of 10 years in prison on each of the 17 counts with which they are charged. Each count also carries a maximum $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to the charges. He also thanked the U.S. Army Criminal Investigation Command, under the command of Major General David E. Quantock and the Morris County Prosecutor’s Office, under the direction of Acting Prosecutor Fredric M. Knapp.
The government is represented by Assistant U.S. Attorneys Melissa L. Jampol and Elizabeth M. Harris of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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Defense counsel:Carolyn Jackson: Rubin Sinins Esq., Springfield
John Jackson: Assistant Federal Public Defenders David Holman and Carol Gillen Esqs., Newark
Jackson, Carolyn and John Indictment
New Haven Man Pleads Guilty to Crack Cocaine Conspiracy ChargesRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that JAYREN WYNN, 23, also known as “Rich Boy,” of New Haven, pleaded guilty today before United States Magistrate Judge Donna F. Martinez in Hartford to two counts of conspiracy to possess with intent to distribute 28 grams or more of cocaine base (“crack cocaine”).
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI New Haven Safe Streets Task Force into drug distribution and related gang activity in The Hill neighborhood of New Haven. The investigation, which included the use of court-authorized wiretaps and several purchases of crack directly from WYNN, revealed that members and associates of the Southside Bloods were distributing large quantities of crack cocaine. WYNN was involved in two separate drug distribution rings associated with the Southside Bloods.
WYNN is scheduled to be sentenced by Chief United States District Judge Alvin W. Thompson on August 2, 2013, at which time WYNN faces a minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
This matter is being investigated by the FBI’s New Haven Safe Streets Task Force, including the New Haven, Hamden and Milford Police Departments, and the State of Connecticut Department of Correction. The case is being prosecuted by Assistant United States Attorneys Anthony E. Kaplan and H. Gordon Hall.
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U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Nampa Man Sentenced to Prison for Possessing Sawed-Off ShotgunRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced today that Kenneth Lee Morgan, 51, of Nampa, Idaho, was sentenced in United States District Court to 32 months in prison followed by three years of supervised release for possessing an unregistered firearm. Morgan appeared before the Hon. John C. Coughenour, U.S. District Judge for the Western District of Washington, at the federal courthouse in Boise.
Morgan pleaded guilty to the charge on February 7, 2013. At the time he pleaded guilty, Morgan admitted that on April 18, 2011, he was in possession of a sawed-off shotgun. According to other information presented in court, the Winchester 12 gauge sawed-off shotgun was recovered by law enforcement agents after Morgan sold the shotgun to another individual.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force, a task force comprised of local and federal law enforcement agencies in the Treasure Valley. The case is 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.
Milwaukie Man Sentenced to 48 Months in Federal Prison for Aggravated Identity Theft, Wire Fraud, and BurglaryRead the Press Release
PORTLAND, Ore. – U.S. District Judge Anna J. Brown today sentenced Bradley Lawrence Berg, 42, of Milwaukie, Oregon, to 48 months in prison for aggravated identity theft, wire fraud, and burglary of a federally insured credit union. Berg also was ordered to pay $45,000 in restitution. Berg committed this latest offense while he was on supervised release after being sentenced to seventy-one months in federal prison for felon in possession of a firearm in 2001.
The Clackamas County Sheriff’s Office began investigating a burglary of the Oregonians Federal Credit Union in Milwaukie, Oregon, after employees discovered a roof-top entry had been made during the night of October 7, 2010. Deputies discovered the ATM had been tampered with and the keypad to the vault door had been removed. A used bandage was seized from the crawl space next to the ATM and submitted to the Oregon State Police Crime Lab which determined that Berg’s DNA was on the bandage.
Sometime between November 5, 2010 and November 8, 2010, and again on December 6, 2010, Qwest Communications (now Century Link Communications, Inc.) experienced break-ins to work vans that were stored behind security fencing. Very expensive fiber optic equipment was missing and eventually sold on eBay internet sites.
The Clackamas County Sheriff’s Office continued to investigate additional roof-top burglaries at a Clackamas Office Depot store on November 20, 2010 and December 12, 2010, and recovered a tool with Berg’s name on it during the investigation. Berg was later arrested inside a stolen auto in North Portland, on December 26, 2010, when officers responded to a silent alarm and found Berg breathing heavily while pretending to be asleep in the stolen car.
The investigation showed that Berg had instructed his girlfriend to sell stolen merchandise on eBay. A search warrant was executed on Berg’s residence and his storage locker, discovering identity theft equipment, personal information of others, PayPal checks, counterfeit social security cards, and drivers licenses. Upon discovery of the counterfeit documents, the U.S. Secret Service joined the investigation. The defendant later admitted that he sold a fiber fusion splicer for $8,600 to an electrical firm in LaGrange Kentucky, by advertising it on eBay, and collecting wire transferred funds via his PayPal account.
Berg’s girlfriend, Kristin Danielle Burke, 41, was prosecuted in Clackamas County Circuit Court. Berg is expected to face state court charges in Clackamas and Multnomah Counties for property crimes committed there.
The case was investigated by the Clackamas County Sheriff’s Office and the U.S. Secret Service. Assistant U. S. Attorney John Haub prosecuted the case.
Mexican National Sentenced to 56 Months for Possession of Child PornographyRead the Press Release
BOISE – Heriberto Aleman-Aguero, 25, a Mexican national formerly living in St. Anthony, Idaho, was sentenced yesterday to 56 months in prison for possession of sexually explicit images of minors, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Aleman-Aguero to serve five years of supervised release following his prison term and forfeit property used in committing the crime. He pleaded guilty to the charge in November 2012.
According to the plea agreement, Aleman-Aguero’s crime was discovered when he took his cellular phone to a repair shop in July 2011. During the course of the repair, the individual reprogramming the phone observed several images of suspected child pornography. He reported the images to law enforcement. The Rexburg Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a search warrant for the phone. Forensic analysis later confirmed the presence of several sexually explicit images of minors. Aleman-Aguero admitted in court to possessing the images, knowing the images contained visual depictions of minors engaged in sexually explicit conduct. Aleman-Aguero further admitted knowing that production of such visual depictions involved the use of minors in sexually explicit conduct.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Rexburg Police Department.
Meriden Man Involved in Home Invasion Admits Illegal Firearm Possession, Violating Supervised ReleaseRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that SHANE LEVERETTE, also known as Shane Baltas, 44, of Meriden, pleaded guilty today before United States District Judge Janet C. Hall in New Haven to possession of a firearm by a previously convicted felon. LEVERETTE also admitted that he violated conditions of his supervised release from a previous federal conviction.
According to court documents and statements made in court, on February 16, 2011, at approximately 10:40 p.m., LEVERETTE and an accomplice, who was armed with a handgun, entered a residence in Middlefield for the purpose of stealing money and drugs. LEVERETTE and his accomplice were dressed in black and wearing baseball hats with a DEA logo and gloves, and had bandannas covering their faces. Inside the residence, LEVERETTE located and stole a semi-automatic rifle. He and his accomplice then threatened two adults with their firearms and directed them to remain seated on the bed. After demanding money, the accomplice struck a male victim with the handgun, causing the victim’s head to bleed, and the handgun discharged. LEVERETTE and his accomplice then searched the bedroom for drugs and money.
After receiving a 911 call, the Connecticut State Police and Middletown Police Department arrived at the scene and surrounded the residence. LEVERETTE and his accomplice surrendered and were arrested and charged with state offenses. Law enforcement officers also seized the accomplice’s handgun and the semi-automatic rifle that LEVERETTE had stolen.
Prior to February 2011, LEVERETTE had sustained multiple federal and state felony convictions. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce. The rifle that LEVERETTE possessed had been manufactured in Hungary.
In February 1999, LEVERETTE was sentenced in federal court in Massachusetts to 151 months of imprisonment for racketeering, narcotics and firearm offenses. He was released from federal prison on April 23, 2007, and was serving a five-year term of supervised release at the time of the Middlefield home invasion.
Judge Hall has scheduled sentencing for July 23, 2013, at which time LEVERETTE faces a maximum term of imprisonment of 10 years and a fine of up to $250,000 for illegally possessing the firearm. He also faces up to five years in prison for violating his supervised release.
LEVERETTE has been detained since his arrest.
This matter has been investigated by the Bureau of Alcohol Tobacco and Firearms, the Connecticut State Police and the Middletown Police Department. The case is being prosecuted by Assistant United States Attorney Peter S. Jongbloed.
PUBLIC AFFAIRS CONTACT:
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(203) 821-3722 [email protected]Mechanicsburg Man Pleads Guilty to Tax EvasionRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that Thomas C. Holloway, age 46, of Mechanicsburg, Pennsylvania, pleaded guilty today before U.S. District Court Judge Christopher C. Conner to attempted income tax evasion for 2008. Sentencing has been scheduled for August 8, 2013.
According to United States Attorney Peter J. Smith, Holloway previously was employed by Spherion (an IT firm based in Mechanicsburg and formerly known as Intellimark and Technisource) between 2001 and 2009 and embezzled company funds which were not reported on his income tax returns. Holloway previously was charged by local authorities with theft by deception in connection with the embezzlements and was sentenced in 2010 in state court to probation and ordered to pay $125,000 in restitution to Spherion. The current tax charges allege that the tax loss to the IRS was $80,000 for the years 2003-2009.
The case was investigated by the Criminal Investigation Division of the IRS and is assigned to Senior Litigation Counsel Bruce Brandler for prosecution.
A sentencing following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is five years' imprisonment, a term of supervised release following imprisonment, 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.
McLaughlin Man Sentenced for Firearms OffenseRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin man convicted of Felon in Possession of a Firearm was sentenced on April 29, 2013, by U.S. District Judge Charles B. Kornmann. Jess Porras, age 52, was sentenced to 6 months in custody, 1 year of supervised release, and a $100 special assessment.
Porras was indicted by a federal grand jury on October 16, 2012. On January 2, 2013, he pled guilty to Count I of the indictment.
The conviction stems from an incident in December 2011 when the Defendant was providing guiding services to a group of hunters from Minnesota. After a member of the hunting party missed several shots at a deer, the Defendant, knowing he had previously been convicted of a felony and was prohibited from possessing firearms, grabbed the hunter's rifle and shot the deer.
This case was investigated by U.S. Fish & Wildlife Law Enforcement Services. Assistant U.S. Attorney Troy Morley prosecuted the case.
Porras is to self-report to the U.S. Marshal’s Service by 2:00 p.m. on May 21, 2013.
Manhattan U.S. Attorney Recovers $200,000 in Civil Penalties from Upper East Side Pharmacy That Violated the Controlled Substances ActRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Brian R. Crowell, the Special Agent-in-Charge of the New York Division of the U.S. Drug Enforcement Administration (“DEA”), announced today that the United States has settled a civil lawsuit against MADISON AVENUE PHARMACY (“MADISON AVENUE”), a retail pharmacy on the Upper East Side of Manhattan, and RICHARD SCHIRRIPA, the pharmacy owner and a licensed pharmacist. Under the settlement, MADISON AVENUE and SCHIRRIPA admitted and accepted responsibility for numerous violations of the Controlled Substances Act, and agreed to pay $200,000 in penalties and to implement enhanced compliance procedures. The settlement agreement, in the form of a consent order, was approved yesterday in Manhattan federal court by U.S. Magistrate Judge Michael H. Dolinger.
Manhattan U.S. Attorney Preet Bharara said: “Prescription drug abuse is the fastest-growing drug problem in this country, and retail pharmacists who fail to fulfill their legal obligation to responsibly keep account of these dangerous drugs enable further abuse. As the settlement against Richard Schirripa and Madison Avenue Pharmacy shows, this Office will not tolerate professionals who disregard the drug laws.”
DEA Special Agent-in-Charge Brian R. Crowell said: "DEA Diversion Investigators are the nationwide auditors of our pharmacies, which are mandated to adhere to strict compliance procedures, especially the oversight of addictive pain medications. In New York City, the number of painkiller-related emergency room visits increased over the past decade by 143%, and as the number of overdose deaths and hospital visits has climbed throughout the last five years, it is imperative that pharmacies maintain accountability by keeping accurate records and report any loss immediately to prevent highly addictive medications from falling into the wrong hands."
According to the allegations contained in the Complaint:
Following an employee theft of OxyContin at MADISON AVENUE in June 2009, a DEA audit in July 2009 discovered that SCHIRRIPA had failed to report the theft in a timely manner. The DEA also found that MADISON AVENUE and SCHIRRIPA were not maintaining a complete and accurate inventory of OxyContin, and had failed to adhere to a number of other record-keeping provisions required under the CSA. Oxycontin is a brand name of time-released oral Oxycodone, which is classified as a Schedule II controlled substance under the CSA.
In the settlement agreement approved today, MADISON AVENUE and SCHIRRIPA “admit, acknowledge, and accept responsibility” for the following violations of the CSA: SCHIRRIPA allowed dispensing pharmacists at MADISON AVENUE to order Schedule II controlled substances using his private access key, rather than requiring them to obtain and use their own keys; he and the pharmacy did not utilize the relevant software to electronically reconcile orders of Schedule II controlled substances; MADISON AVENUE was not maintaining a complete and accurate record of the pharmacy’s supply of OxyContin at the time of the DEA audit; SCHIRRIPA and MADISON AVENUE failed to conduct a timely biennial inventory in 2009; and they did not timely report the loss of OxyContin to the DEA.
MADISON AVENUE and SCHIRRIPA agreed to pay $200,000 in civil penalties to the United States and agreed to implement enhanced compliance procedures, including the retention of a compliance officer approved by the DEA, the creation of a comprehensive compliance plan, and the furnishing of inventory reports and certifications to the DEA every six months for a period of five years.
Mr. Bharara praised the DEA for its work on this case.
This case is being handled by the Office’s Civil Division. Assistant U.S. Attorneys Cristine Irvin Phillips and Louis A. Pellegrino are in charge of the case.
U.S. v. Madison Avenue Pharmacy and Richard Schirripa Consent Order
Lower Brule Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on April 29, 2013, by U.S. District Judge Roberto A. Lange. Leonard Edwards, age 23, was sentenced to 27 months of imprisonment, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Edwards was indicted for the above offense by a federal grand jury on November 15, 2012. He pled guilty on February 5, 2013. The charge stems from an incident when Edwards, on August 25, 2012, was at a party at a home in Lower Brule. Present were Edwards, the victim, and others. Later in the evening, the victim decided to leave the party and took a bottle of alcohol with him. Edwards followed the victim outside. Once outside, Edwards walked up to the victim and struck him in the face with a closed fist. The victim fell to the grounds, knocked unconscious. As a result, the victim suffered multiple fractures to the jaw that required surgery to repair.
The investigation was conducted by the Federal Bureau of Investigation, and Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Edwards was immediately turned over to the custody of the U.S. Marshal’s Service.
Lower Brule Man Guilty of AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that Irvin Scott Yazzie, age 24, of Lower Brule, South Dakota, appeared before U.S. District Judge Roberto A. Lange on April 30, 2013, and pled guilty to the indictment that charged him with Assault with a Dangerous Weapon. The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release, and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment to the Federal Crime Victims Fund may also be ordered.
The charge stems from an incident when Yazzie and his girlfriend, who were staying at a residence in Lower Brule, began arguing about their relationship. During the course of the argument, Yazzie assaulted the victim by striking her with his fists and a black aluminum pole. The victim suffered bruising as a result of the assault.
The investigation was being conducted by the Bureau of Indian Affairs, and Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case. Yazzie was remanded to the custody of the U.S. Marshal’s Service pending sentencing on July 22, 2013.
Leslie Ashmore Sentenced to 240 Months in Prison for Being A Felon in Possession of A FirearmRead the Press Release
GREENEVILLE, Tenn. – On Apr. 30, 2013, Leslie H. Ashmore, 46, of Kingsport, Tenn., was sentenced to serve 240 months in prison, by the Honorable Leon Jordan, U.S. District Judge. Upon his release from prison, he will be subject to supervised release for five years. There is no parole in the federal system.
Following a jury trial in December 2012, Ashmore was convicted of possession of a firearm after having been previously convicted of a felony offense. He was arrested by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) on federal charges in October 2011, with the assistance of the Kingsport Police Department SWAT team, Sullivan County Sheriff's Department, and Second Judicial District Drug Task Force. A firearm was found in the vehicle in which Ashmore was traveling at the time of his arrest. Federal law prohibits anyone who has previously been convicted of a felony offense from possessing a firearm or ammunition. Ashmore was also subject to the provisions of the Armed Career Criminal Act, whereby a person convicted of possessing a firearm after a felony conviction is subject to a minimum mandatory 15 years, up to life in prison if that person has three or more prior violent felony or drug felony convictions.
The investigation was conducted by the Kingsport Police Department, Second Judicial District Drug Task Force, and ATF. Assistant U.S. Attorneys J. Gregory Bowman and Suzanne Kerney-Quillen represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
Lee's Summit Soccer Coach Indicted on Additional Charges of Producing Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lee’s Summit, Mo., youth soccer coach was indicted by a federal grand jury today on additional charges related to producing child pornography by secretly videotaping members of his soccer team.
Joel D. White, 40, of Lee’s Summit, was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against White on April 23, 2013. White, who coached a girls under-12 soccer team and a girls under-15 soccer team through the Lee’s Summit Soccer Association, remains in federal custody. The Lee’s Summit Soccer Association has cooperated fully with law enforcement officers during this investigation.
Today’s indictment charges White with three separate counts of attempting to produce child pornography. White allegedly attempted to use three child victims – identified in the indictment as Jane Doe #1, Jane Doe #2 and Jane Doe #3 – to produce child pornography between May 1, 2012 and March 20, 2013. Each of the three counts contained in the indictment carries a mandatory minimum sentence upon conviction of 15 years in federal prison without parole.
Under Department of Justice guidelines, the attempted production of child pornography is ordinarily charged in cases that involve surreptitious recordings. The statutory penalties for producing child pornography are the same as the penalties for attempting to produce child pornography.
According to an affidavit filed in support of the original criminal complaint, law enforcement officers in Commerce City, Colo., discovered videos of nude minors on White’s camera. White was at a soccer stadium in Colorado last month for a World Cup qualifying game when the cameras were seized by law enforcement officers as part of a criminal investigation.
Several videos allegedly depict White positioning a video camera in a bedroom of his residence in such a way that the camera is hidden. Shortly after White leaves the room, the affidavit says, the videos depict several minors, approximately 11 or 12 years old, entering the room and changing their clothes. Minors are fully nude in the videos and do not appear to know they are being videotaped.
White allegedly told police that he videotaped nude minors 10 to 15 times without their consent from May to October 2012. According to the affidavit, at least four child victims have been identified so far in the investigation.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Teresa A. Moore. It was investigated by the Lee’s Summit, Mo., Police Department and the Commerce City, Colo., 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."KC Man Sentenced to 30 Years in Prison for Illegally Possessing FirearmRead the Press Release
Project Ceasefire
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has been sentenced in federal court for illegally possessing a firearm that was involved in a triple homicide last year.
Anthony Walker, 46, of Kansas City, was sentenced on Monday, April 29, 2013 by U.S. District Judge Howard F. Sachs to 30 years in federal prison without parole. Walker was sentenced as an armed career criminal due to his prior felony convictions.
On Aug. 1, 2012, Walker pleaded guilty to being a felon in possession of a firearm. Walker admitted that he sold a Hi-Point semi-automatic .40-caliber handgun and a box of ammunition to a confidential law enforcement source for $200 on Jan. 26, 2012. According to court documents, the firearm and ammunition was sent to the Kansas City Regional Crime Lab for examination. Lab results indicated that the handgun matched ballistic evidence taken from the scene of a triple homicide that occurred on Jan. 16, 2012. The results also indicated that the firearm was the same gun used to kill three individuals. The Winchester ammunition purchased from Walker matched the casings recovered at the scene of the triple homicide.
Walker was arrested on Feb. 1, 2012. Court documents state that the shoes Walker was wearing when arrested matched shoe impressions taken from inside the residence where two of the three killings occurred.
On July 17, 2012 Walker was charged in a separate case in the Circuit Court of Jackson County with three counts of first degree murder, three counts of armed criminal action and one count of burglary.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Walker has two prior felony convictions for burglary and prior felony convictions for stealing, escape, unlawful use of a weapon, forgery and robbery.
This case was prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Ceasefire
Project Ceasefire, launched in October 1999, is a cooperative initiative by federal and local law enforcement and the Kansas City Crime Commission that targets for federal prosecution persons who unlawfully use or possess firearms.Jury Convicts California Man of Possessing Cocaine found aboard Greyhound BusRead the Press Release
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a California man was convicted by a federal jury today of possessing about a kilogram of cocaine that was discovered hidden in his suitcase aboard a Greyhound bus as he traveled through Kansas City.
Rene Alexandor Meras, 32, of California, was found guilty of possessing cocaine with the intent to distribute.
Evidence introduced during the trial indicated that Meras was transporting more than two pounds of cocaine from Los Angeles, Calif., to Cleveland, Ohio. Meras was riding a Greyhound bus from Los Angeles that arrived in Kansas City for a layover on Aug. 29, 2012. Law enforcement officers approached Meras and asked to see his ticket and identification. Meras showed the officers his ticket (which included a baggage claim check), but did not have any identification. Meras initially gave officers a false name (which did not match his ticket) and told them he didn’t have any luggage, but later acknowledged that he did have a roller bag.
Meras gave his consent for officers to search his bag. At the bottom of the bag were two pieces of plywood sandwiched together and sewn into the liner. An officer removed the plywood and discovered the cocaine taped to the underside of the top piece of plywood.
Meras refused to give his name and any biographical information about himself, but his identity was confirmed through his fingerprints, utilizing the FBI database. A woman who was traveling with Meras denied any knowledge of the cocaine and was not charged.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about an hour before returning the guilty verdict to U.S. District Judge Ortrie D. Smith, ending a trial that began Monday, April 29, 2013.
Under federal statutes, Meras is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole, plus a fine up to $5 million. A 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 David DeTar Newbert and Special Assistant U.S. Attorney Jalilah Otto. It was investigated by the Drug Enforcement Administration and the Kansas City, Mo., Police Department.
Jefferson City Attorney Indicted for Marriage Fraud ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Jefferson City, Mo., attorney has been indicted for his role in a conspiracy to commit marriage fraud in order to evade immigration laws.
James Douglas Barding, 60, of Jefferson City, was charged in a superseding indictment that was returned under seal by a federal grand jury in Jefferson City on April 24, 2013. The superseding indictment was unsealed and made public today in conjunction with Barding’s initial court appearance. Barding is a practicing attorney.
The superseding indictment adds Barding as a co-defendant with Oleksandr Nikolayevich Druzenko, also known as “Alex” or “Sasha,” 32, of Jefferson City, Patricia Anne Ewalt, 60, of El Paso, Texas, and Darya Chernova, 38, of Chandler, Ariz. Barding’s co-defendants were originally charged in an Oct. 3, 2012 federal indictment. The superseding indictment also includes additional charges against some of the defendants.
According to the indictment, Barding (a married U.S. citizen) was having an affair with Chernova, a Ukrainian national who entered the United States on a student visa and attended Lincoln University before earning a master’s degree from the University of Missouri-Columbia. Barding allegedly assisted Chernova to enlist a U.S. citizen to marry her so that she could remain in the United States.
Barding and Chernova were friends of Ewalt (a U.S. citizen) and Druzenko, a Ukrainian national who entered the United States on a student visa in August 2004 and attended college in Missouri and elsewhere. Druzenko is currently employed at the Missouri Office of Administration in Jefferson City.
Barding and Chernova allegedly assisted Druzenko in early 2007 to find a U.S. citizen to marry him so that he could remain in the United States and attempt to gain permanent resident status and potentially U.S. citizenship. They approached several persons, the indictment says, including one person with whom Druzenko procured a marriage license but who then declined to enter the sham marriage.
According to the indictment, Druzenko was introduced to Ewalt in March 2007. Druzenko and Ewalt were married on June 22, 2007, the indictment says, for the sole purpose of allowing Druzenko to remain in the United States. Under his student visa, Druzenko would have had to depart the United States within 60 days after graduation. Because of his marriage to Ewalt, Druzenko obtained lawful permanent resident status on Jan. 2, 2008.
Barding, Druzenko, Ewalt and Chernova are charged with participating in a conspiracy to defraud the United States, to commit marriage fraud, and to gain resident status and citizenship through false statements.
In addition to the conspiracy, Barding, Druzenko, Ewalt and Chernova are charged together in one count of marriage fraud. Druzenko and Ewalt are also charged together in three counts that are related to making false statements on immigration forms.
Barding, Druzenko and Chernova are also charged together in one count of attempting to unlawfully procure citizenship or naturalization. This charge is related to the unsuccessful attempt in early 2007.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the U.S. Citizenship and Immigration Services and the Jefferson City, Mo., Police Department.
James Matthew Tafelmeyer 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 April 30, 2013, before U.S. District Judge Richard F. Cebull, JAMES MATTHEW TAFELMEYER, a 32-year-old resident of Billings, appeared for sentencing. TAFELMEYER was sentenced to a term of:
Prison: 97 months
Special Assessment: $100
Supervised Release: 15 years
TAFELMEYER was sentenced in connection with his guilty plea to receipt of child pornography.
In an Offer of Proof filed by Assistant U.S. Attorney Marcia K. Hurd, the government stated it would have proved at trial the following:
Law enforcement officers were investigating allegations of child pornography access by users utilizing the peer-to-peer file sharing network. One investigation involved a person in Billings who had child pornography available to share via a file sharing program. A search warrant was obtained for the residence and served on December 1, 2011.
TAFELMEYER was the occupant of the residence. When questioned, TAFELMEYER admitted that he used the peer-to-peer file sharing program Limewire to receive and possess hundreds of child pornography videos and images. He detailed the search terms he used to find child pornography on Limewire and how he had saved it to various computers and other equipment, and how he had been doing so since 2004.
Agents seized various computer equipment at TAFELMEYER's residence. Subsequent forensic examination revealed hundreds of images and movies of child pornography that TAFELMEYER had received via the Internet for years and continuing until the equipment was seized. TAFELMEYER possessed images and movies of children clearly prepubescent and children engaged in sadistic or masochistic abuse or other depictions of violence. TAFELMEYER possessed a total of over 2,000 images and 24 videos of child pornography on the equipment specified in the forfeiture count.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that TAFELMEYER will likely serve all of the time imposed by the court. In the federal system, TAFELMEYER 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 a cooperative effort between the Federal Bureau of Investigation, the Billings Police Department, and the Internet Crimes Against Children (ICAC) Task Force.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
International Narcotics Trafficker Extradited to Face Drug Trafficking and Narco-Terrosism ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney of the Southern District of Florida, and Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, announced that Jose Evaristo Linares-Castillo, a/k/a “Don Eva,” has been extradited from Colombia to the United States.
Linares-Castillo and four co-conspirators were indicted in the Southern District of Florida for drug trafficking and money laundering activities within the Southern District of Florida. Linares-Castillo, a Colombian citizen, is designated a Consolidated Priority Organization Target (“CPOT”) by the Department of Justice, a designation given to the most significant narcotics traffickers in the world. Linares-Castillo was responsible for overseeing the manufacture and transportation of thousands of kilograms of cocaine from Apure, Venezuela to Central America and the Caribbean. Linares-Castillo used many lieutenants and independent cocaine sub-contractors to accomplish the movement of cocaine produced in his laboratories in Colombia. Based upon this investigation, Linares-Castillo’s organization maintained possession of approximately 20,000 kilograms of cocaine cached in Apure, Venezuela, near Fuerzas Armadas Revolucionarias de Colombia (the “Revolutionary Armed Forces of Colombia,” or “FARC”) controlled clandestine airstrips, where the cocaine laden aircraft were launched. Linares-Castillo was closely affiliated with CPOT Daniel Arnoldo Barrera-Barrera, a/k/a “Loco Barrera,” as well as with deceased CPOT Pedro Olivero Guerrera-Castillo, a/k/a “Cuchillo.”
Throughout the course of this investigation, agents from the DEA Miami Field Division as well as Assistant United States Attorneys for the Southern District of Florida uncovered a vast drug trafficking and money laundering network, which resulted in the identification of key members of the Linares-Castillo drug trafficking organization responsible for supplying members of the Mexico based Sinaloa Drug Cartel thousands of kilograms of cocaine in Honduras. The kilograms of cocaine were then transported to the United States, via Mexico for distribution. The proceeds from the drug trafficking venture were then repatriated to Colombia through traditional money laundering methods. Linares-Castillo was also named in an indictment returned by a federal grand jury in the Southern District of New York, charging that he conspired to import ton-quantities of cocaine into the United States, to provide material support to the FARC, and to engage in narco-terrorism.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) led by DEA. 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.
Mr. Ferrer commended the investigative efforts of the DEA. This case is being prosecuted by Assistant U.S. Attorney Andrea Hoffman.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Hudson Man Charged with Child Pornography OffensesRead the Press Release
Tampa, FL - United States Attorney Robert E. O'Neill announces the filing of a criminal complaint charging Wayne Miner (44, Hudson) with transportation, receipt, and possession of child pornography. If convicted, Miner faces a mandatory minimum of five years in federal prison and a maximum penalty of 50 years in federal prison.
The complaint alleges that Miner traded child pornography with others using at least two e-mail addresses and the Internet. His computer and cellular phone contained numerous files of child pornography.
A criminal complaint is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.This case was investigated by the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement's Homeland Security Investigations, and the Pasco County Sheriff's Office. It will be prosecuted by Assistant United States Attorney Jennifer L. Peresie.
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.
Home Invasion Investigation Results in Prison SentenceRead the Press Release
MOBILE, Ala. - Roderick Levar Jones, 33, of Prichard, Alabama, was sentenced yesterday in federal court to 87 months imprisonment, for his participation in a violent home invasion during November of 2011 in Chickasaw, Alabama. Jones entered a guilty plea to the charge of accessory after the fact to kidnapping in federal court in December of 2012. Court documents reflect that he became involved when those committing the home invasion, Brandon Nobles, Miller Griffin and Zerrick Robinson, contacted him to assist them after they had kidnapped the victim’s wife. Jones, armed with a gun, stood guard over the victim’s wife while the others sought to collect a ransom. Nobles, Griffin and Robinson all pled guilty to the federal gun and kidnapping charges in July of 2012. Nobles was sentenced in March of 2013 to a term of imprisonment of 264 months. Robinson and Griffin have not yet been sentenced.
United States District Court Judge Kristi K. Dubose imposed the sentence in Jones’ case. She ordered that Jones serve a term of 87 months imprisonment, to be followed by a supervised release term of three years. She ordered that the defendant receive drug treatment and that he be subject to drug testing when released on supervision following his prison term. No fine was imposed, but the judge ordered that Jones pay the special manadtory assessment of $100.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Chickasaw Police Department, the Mobile Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Gloria Bedwell.
Guilty Plea and Sentencing Occur for Two Co-Defendants Involved with Drug Distribution and Firearms PossessionRead the Press Release
St. Louis, MO - Stanley “Outlaw” Carter, of St. Louis City, pled guilty on April 22, 2013, to one felony count of brandishing a firearm in furtherance of a drug trafficking crime and a second felony count of discharging a firearm in furtherance of a drug trafficking crime. Carter entered his change of plea before United States District Judge Henry E. Autrey.
Specifically, on March 26, 2008, Carter and co-defendant Antonio “Lips” Shaw and another accomplice, Richard “Repeat” Bobbitt, entered a City of St. Louis residence with guns drawn. The residence was occupied at the time by a 10-year old girl, a teenage boy and the children's mother. Carter and his two accomplices stole a significant amount of marijuana that they located in the residence.
On May 10, 2008, Carter utilized an AR-15 assault-style rifle to execute two individuals associated with a rival group. The two men were inside a vehicle when Carter approached and opened fire from point-blank range. The shooting occurred at the area commonly referred to as "the Circle" located near 1199 Riverview Boulevard within the City of St. Louis. The first victim, Adolph Ellison, was pronounced dead at the scene. The second victim, Donald Mack, died shortly after. Immediately following the shooting, Carter and his two accomplices, again being Shaw and Bobbitt, fled the scene and undertook efforts to conceal evidence related to the crime.
Carter now faces penalties ranging from 35 years to life in prison. Sentencing is set for July 22, 2013. In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
Today, Carter's co-defendant, Antonio Shaw, was sentenced to over 31 years imprisonment on one felony count of conspiracy to possess with the intent to distribute marijuana and cocaine base (crack) and a second felony count of brandishing a firearm in furtherance of a drug trafficking crime.
Shaw was convicted of both crimes after a six-day jury trial before United States District Court Judge Henry E. Autrey. During sentencing, the United States District Court took into consideration evidence of Shaw's drug distribution and firearm possession established by the United States during Shaw's criminal trial. The Court also considered, among other things, Shaw's direct involvement in the May 10, 2008, Riverview Circle double-homicide. The additional evidence presented at sentencing established that, among other things, Shaw provided to Carter the firearm used to murder the two victims, identified the two victims as the targets to be killed and drove the vehicle utilized before, during and after the shooting.
This case was investigated by the St. Louis Metropolitan Police Department, St. Louis County Police Department, the Berkeley Police Department, United States Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service and the St. Louis Circuit Attorney’s Office.
Greenville Firearms Trafficker SentencedRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court today Senior United States District Judge James C. Fox sentenced LIONEL THOMAS EASTERLING, 30, of Greenville, North Carolina, to 84 months imprisonment followed by 3 years supervised release.
On January 2, 2013, EASTERLING pled guilty to an Indictment charging him with two counts of possession of a firearm by a convicted felon.
The investigation began when the Greenville Regional Drug Task Force used an informant to make two controlled purchases of firearms from EASTERLING in Greenville, N.C. On June 12, 2012, EASTERLING sold three stolen handguns to the informant and on June 20, 2012, EASTERLING sold an AR-15 assault rifle to the informant. EASTERLING was prohibited from possessing firearms and due to his prior felony convictions for selling cocaine.
The investigation of this case was conducted by the Greenville Regional Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney's Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney's Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. The assignment to the United States Attorney's Office has been made possible by grants funded by the Governor's Crime Commission.
Goodwin Announces Record Total in Prescription Drug Take-back EventRead the Press Release
U.S. Attorney’s Office and DEA announce success in sixth Prescription Drug Take-Back Day; over 2 tons of drugs collected
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin and U.S. Drug Enforcement Administration (DEA) Resident Agent in Charge John Ryan jointly announced today that as a result of the April 27th Prescription Drug Take-Back event, a total of 4,642 pounds of unwanted, unused and expired prescription drugs were collected from citizens and households across West Virginia. The April 27th collection results surpassed the previous Take-Back record of 4572 pounds collected last year, in April 2012.
U.S. Attorney Goodwin said, “This year’s record total is another milestone in the fight against prescription drug abuse. West Virginians understand how devastating the prescription drug problem is for our families, and they’re responding in the most effective way they can: by getting rid of potentially dangerous medicine that they don’t need any more.”
DEA Resident Agent in Charge Ryan said, “Prescription drug abuse has plagued so many of our communities. When people voluntarily take prescriptions out of their homes and dispose of them properly, it truly helps our fight against prescription drug abuse. I commend all of the federal, state and local partners in West Virginia for their assistance, which has made this sixth Take-Back a success.”
The April Take-Back designated more than 100 sites throughout West Virginia, providing citizens with several locations to drop off expired, unused and unwanted medications. Nationwide, more than 5,100 sites participated.
In the five previous Take-Back events, the Drug Enforcement Administration and numerous federal, state, and local law enforcement partners have collected more than 2 million pounds (1,018 tons) of prescription medications nationwide.
Former State Probation Officer Guilty of Extortion in Operation Delta BluesRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, along with Randall C. Coleman, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), announced today that former Arkansas Department of Community Corrections Parole/Probation Officer Roxanne Davis, age 38, of Wynne, pleaded guilty to one count of extortion under color of official right (18 U.S.C. § 1951) before U.S. District Court Judge J. Leon Holmes in Case No. 4:12CR00260 JLH. The remaining count against Davis was dismissed upon the Court's acceptance of the plea.
During the Change of Plea hearing, Davis admitted the following facts:
Between October 2007 and October 2011, Davis was an employee of the Arkansas Department of Community Correction (ADCC), serving as a Parole/Probation Officer for parolees/probationers in Lee County, Arkansas, and elsewhere. Davis's official duties and responsibilities included: monitoring the parolees/probationers' compliance with the conditions of probation by explaining the rules, regulations, and conditions of parole or probation; administering court-ordered and random drug tests to parolees/probationers and writing parole violation reports upon a positive test; maintaining a chronological history of contacts with parolees/probationers and writing reports accordingly; counseling parolees/probationers during office visits and referring them to various agencies for assistance such as substance abuse counseling and treatment, employment, education, and human services; and making home and community visits to verify parole/probation information and follow-up visits to determine if parolees/probationers are adhering to conditions of parole/probation and to assist them with the community adjustment process.
Davis, like all ADCC officers and staff, was prohibited from collecting court-ordered "economic sanctions" from parolees/probationers. Davis was aware that all payments were to be mailed by the parolee/probationer directly to the ADCC Central Office in Little Rock.
As part of her ADCC duties and responsibilities, Davis was assigned to supervise Torrence Turner, who was on parole from a first degree murder conviction. Between October 2007 and October 2011, Davis misused her authority as an ADCC Parole/Probation Officer to collect cash payments and obtain goods from parolee Torrence Turner in exchange for not enforcing Torrence Turner's parole conditions.
For example, in May 2011, Davis accepted cash from Torrence Turner, ostensibly for a "mother's day present" and for a child's birthday. Davis stipulates that the government would show that her conversations with Torrence Turner concerning these payments were recorded pursuant to a court-authorized wiretap on Torrence Turner's phone. Between October 2007 and October 2011, Davis received more than $1000, but less than $5000, in cash from Torrence Turner in exchange for not enforcing Torrence Turner's parole conditions. Additionally, in April 2011, upon being notified that the Federal Bureau of Investigation conducted an inquiry into Torrence Turner's criminal history, Davis informed Torrence Turner of this inquiry so that Torrence Turner could hide his illegal activities, including drug trafficking, from law enforcement.
Sentencing will be set by the Court at a later date. The potential penalties for a violation of Title 18, United States Code, Section 1951 are up to 20 years incarceration, up to three years supervised release, and up to a $250,000 fine. Davis was not detained.
Torrence Turner previously pleaded guilty in Case No. 4:11CR00211-1 JMM to conspiracy to possess with intent to distribute and to distribute crack cocaine in violation of 21 U.S.C. § 846. During his Change of Plea hearing on September 17, 2012, before U.S. District Judge James M. Moody, Turner admitted that he led a drug trafficking organization in Marianna, Arkansas, and that between January 2010 and October 2011, he distributed between 50 and 150 kilograms of cocaine and between 2.8 kilograms and 8.4 kilograms of crack cocaine in Lee County and other counties in the Eastern District of Arkansas. On February 13, 2013, Judge Moody sentenced Turner to 30 years incarceration in the Bureau of Prisons, to be followed by 5 years supervised release, no fine.
The investigation was conducted by the United States Attorney's Office and the FBI, with the assistance of the Arkansas Department of Community Correction - Internal Affairs Division. It is being prosecuted by Assistant United States Attorney Julie Peters.