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Thursday 14 March 2013
North Dakota Man Convicted of AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that Joey White Eagle, age 32, of Fort Totten, North Dakota appeared before U.S. Magistrate Judge William D. Gerdes on March 7, 2013 and pled guilty to Superseding Information that charged him with Assault by Striking, Beating and Wounding. The maximum penalty upon conviction is 6 months in custody, a $5,000 fine, restitution and a $10 assessment to the Victim Assistance Fund.
The conviction stems from a gang fight that occurred on April 24, 2010 at Bullhead, South Dakota between the Little Eagle family and their supporters and the White Eagle family and their supporters.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Standing Rock Agency. The case is being prosecuted by Assistant U.S. Attorney Mikal Hanson.
A presentence investigation was ordered, and a sentencing date was set for May 30, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Newberg Man Arrested for Child Pornography OffensesRead the Press Release
Richard Tietjens Alleged to Have Amassed Thousands of Videos of Children Being Sexually AbusedPORTLAND, Ore. – Richard Tietjens, 62, of Newberg, was arrested and arraigned today before U.S. Magistrate Judge Paul Papak, on a federal indictment charging him with multiple counts of transportation and possession of child pornography. A grand jury returned the indictment earlier this week. The maximum penalty, if convicted, is up to 20 years of in prison, per count, for transporting child pornography, and up to 10 years in prison for possession of child pornography. The transportation charges also carry a mandatory minimum term of five years in prison.
Tietjens is charged with four counts of transportation of child pornography between July and August 2011. According to the indictment, Tietjens emailed child pornography to four yahoo email accounts between July and August 2011, using the email account [email protected], and possessed child pornography on December 12, 2011, the date law enforcement executed a search warrant at his residence.
According to statements at Tietjen’s arraignment, the Newberg Police Department seized a desktop computer with four hard drives from Tietjens’ residence in December 2011, and a forensic examination by the case agent revealed that the devices contained more than 10,000 images of child sex abuse, and more than 4,500 videos of children being sexually abused. According to the prosecutor, the Newberg Police also seized two servers with another 12 hard drives connected to them from Tietjens’ garage, which also contained child pornography. One of the servers was allegedly used to download child pornography using a peer-to-peer software program, and another server was unsecured and used by Tietjens and others to store files, including child pornography. The prosecutor stated that the two servers contained more than 15 terabytes of storage space. According to arguments at the hearing, Tietjens had been actively trading child pornography through email, instant messenger service, and the peer-to-peer program, and the prosecutor argued Tietjens was likely addicted to child pornography based on the size of the collection he had amassed. Tietjens is an IT employee who built his own computer at home and built at least one of the servers. The prosecutor stated that the Newberg police seized more computers and at least one additional server from Tietjen’s residence this past Monday, but the police had not yet examined them.
The government requested that Tietjens be detained pending trial. Magistrate Papak continued the hearing until Monday at the government’s request to allow a forensic examiner to conduct a preliminary review of the newly seized computers to determine whether any of the devices contain additional child pornography.
This investigation was conducted by the Newberg-Dundee Police Department. The investigation began as part of an undercover operation regarding online sexual exploitation of children. The forensic examination was conducted by the Newberg-Dundee Computer Crimes Unit.
U.S. Attorney Amanda Marshall praised the work of the Newberg-Dundee Police Department and stated, “The allegations in this case illustrate how innovations in technology have exponentially increased the volume of images of child abuse that one person can amass. Each image of child pornography represents a separate and distinct harm to the child whose abuse is depicted.”
Newberg-Dundee Police Captain Jeff Kosmicki said their Computer Crimes Unit forwarded relevant information to other federal agencies in other jurisdictions that led to additional search warrants being issued and executed.
An indictment is only an accusation of a crime, and a defendant should be presumed innocent unless and until proven guilty in court.
This case is being prosecuted by Assistant U.S. Attorney Jane Shoemaker, Chief of the U.S. Attorney’s Office Violent Crimes Unit, 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 visitwww.usdoj.gov/psc and click on the tab "resources."
New Iberia Resident Pleads Guilty to Stealing from FEMARead the Press Release
LAFAYETTE, La: United States Attorney Stephanie A. Finley announced today that Jacqueline Marie Benjamin, 43, of New Iberia, La., pleaded guilty before U.S. District Court Judge Richard T. Haik to conspiring to defraud the Federal Emergency Management Agency out of thousands of dollars in false hurricane damage claims.
In a 2005 application to FEMA following hurricanes Katrina and Rita, the defendant’s sister-in-law Valerie Benjamin applied for rental assistance money claiming she was forced to move as a result of storm damage to her home. According to the stipulated factual basis signed by the defendant in open court, Valerie Benjamin listed her new residence in New Iberia as a rental property and listed Jacqueline Benjamin as her landlord when she was not. As a result of the fraudulent claim, between April 20, 2007 and June 22, 2007, Jacqueline Benjamin received four checks for storm damage losses. The defendant took $200 out of each check and paid Valerie Benjamin.Jacqueline Benjamin also admitted in the stipulated factual basis that in 2008 following hurricanes Gustav and Ike, she gave permission for Valerie Benjamin to file FEMA disaster assistance applications in her name. The FEMA application stated that Jacqueline Benjamin had to evacuate her home because of storm damage. The application also contained false landlord statements, false medical bills, false medical bill receipts, false insurance statements, false rental agreements, and false rental receipts. Jacqueline Benjamin admitted that she never left her home, and the home sustained only minor damage. Between Dec. 22, 2008 and April 9, 2009, the defendant received four checks for storm damage losses. She took $200 out of each check and paid Valerie Benjamin.
Jacqueline Benjamin faces five years in prison, a $250,000 fine, or both with three years of supervised release. A sentencing date has not been set.
The Federal Emergency Management Agency conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel is prosecuting the case.Mohammed Sameer Ahmed Charged with Selling Counterfeit Nfl JerseysRead the Press Release
MOHAMMED SAMEER AHMED, age 36, a resident of Kenner, Louisiana was charged yesterday in a Bill of Information with trafficking in counterfeit goods, announced U.S. Attorney Dana Boente.
According to the Bill of Information, between June and October of 2010, AHMED was found with 58 counterfeit NFL jerseys in his French Quarter shop. The counterfeit “Reebok” Saints jerseys had false “NFL” holograms on them that were likely to lead customers to believe that the jerseys were authentic New Orleans Saints jerseys.
If convicted, AHMED faces a maximum term of imprisonment of ten years, a fine of $2,000,000, and three years of supervised release following any term of imprisonment.
U.S. Attorney Boente reiterated that a Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the U.S. Department of Homeland Security. The case is being prosecuted by Assistant United States Attorney Spiro G. Latsis.
Mission Woman Indicted for Burglary and LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota woman has been indicted by a federal grand jury for Second Degree Burglary and Larceny.
Tara Makes Room For Them, age 19, was indicted by a federal grand jury on February 13, 2013. She appeared before U.S. Magistrate Judge Mark A. Moreno on March 13, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to 15 years’ in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 Special Assessment. Restitution may also be ordered.
The charge is merely an accusation and Makes Room For Them is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Timothy M. Maher is prosecuting the case.
Makes Room For Them was released on bond pending trial. A trial date has not been set.
Minneapolis Man Sentenced for Robbing Bank, Four StoresRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 30-year-old Minneapolis man was sentenced for committing a series of armed robberies at various businesses, including a US Bank. United States District Court Judge Patrick J. Schiltz sentenced Donte McKinley Hollister to 210 months in prison on one count of armed bank robbery. As a part of his plea agreement, Hollister also admitted committing four additional armed robberies that he was charged with under the Hobbs Act. Hollister was indicted on January 11, 2012, and pleaded guilty on September 18, 2012.
In his plea agreement, Hollister admitted that on October 17, 2011, he stole approximately $1,890 from the US Bank located at 2338 Central Avenue in Minneapolis. During the robbery, Hollister brandished a black and silver handgun, vaulted the teller counter, and demanded cash from the teller. After the teller gave him about $1,890, Hollister fled the bank.
In addition, Hollister also admitted that he stole approximately $300 from the Way to Go Sports store in Golden Valley on September 26, 2011; approximately $200 from the Wine Styles store in Medina on September 27, 2011; attempted to steal cash from the Mattress Giant store in Roseville on October 7, 2011; and attempted to steal cash from the Second Wind Exercise Equipment store in St. Louis Park on October 13, 2011. In each of these instances, Hollister brandished a firearm to threaten store employees. He was arrested on October 17 in connection with the September 26 robbery.
The Hobbs Act, passed by Congress in 1946, allows federal prosecutors to prosecute violent habitual criminals who commit armed robbery in places of business that involve interstate commerce. Federal prosecution of these cases is sometimes beneficial since the penalties are often tougher than under state law. Furthermore, because the federal system has no parole, offenders serve virtually their entire prison sentences behind bars.
The case was the result of an investigation by U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Hennepin County Violent Offenders Task Force, and the police departments of Brooklyn Park, Golden Valley, Medina, Roseville and St. Louis Park. It was prosecuted by Assistant U.S. Attorney Kevin S. Ueland.Members of Jewelry Theft Ring SentencedRead the Press Release
NEWPORT NEWS, Va. – William Leandro Herrera-Bohorquez, 33, of Colombia, was sentenced today to 87months in prison, followed by three years of supervised release, for his role in a highly sophisticated jewelry theft ring. He was also ordered to pay restitution in the amount of $891,441 and to forfeit $4,435,500.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Mythili Raman, Acting Assistant Attorney General for the Criminal Division; and James Newman, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by United States District Judge Arenda Wright-Allen.
Herrera-Bohorquez pleaded guilty on Dec. 6, 2012, to conspiring to commit robberies affecting interstate commerce. According to court records, Herrera-Bohorquez was a member of an organized criminal group that stole more than $4.6 million in jewelry from victims in Virginia and at least six other states. He was charged along with seven other individuals who were members of the Richmond-based ring that regularly conducted lengthy surveillance on jewelry stores to identify vulnerable individuals and then follow their targets back to the individuals’ hotel or home. In most of the robberies, several men would suddenly appear as the victims approached or entered their car, punch out the car’s windows, threaten the victims at knife-point and steal the victims’ merchandise. In addition, the thieves would puncture the victims’ car tires and steal their cell phone to reduce the chance of pursuit or apprehension.
After a successful robbery, members of the ring allegedly traveled to New York to sell the merchandise to businessmen, who acted as “fences” and coordinated re-selling the stolen property or melting it down for future use.
Today’s sentencing follows the sentencing of Raul Antonio Escobar-Martinez, 37, aka “Tony,” of Richmond, Va., on March 7, 2013. Escobar-Martinez was sentenced to 87 months in prison, followed by three years of supervised release. He was also ordered to pay restitution in the amount of $1,268,696and to forfeit $4,435,500.
The investigation of this case was led by the ATF’s Washington Field Division, with the assistance of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the police departments in Williamsburg, Virginia Beach, Henrico County, Chesterfield, Prince William County and Fairfax County in Virginia, along with the Virginia State Police; the Baltimore County, Md., Police Department; the Port Authority of New York and New Jersey; the New York City Police Department; and the police departments in Rutherford, N.J., and Gwinnett County, Ga.; and the Morris County, N.J. Prosecutor’s Office.
Assistant United States Attorney Eric M. Hurt and Trial Attorney Jerome Maiatico of the Organized Crime and Gang Section in the Justice Department’s Criminal Division prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.McAllen Urologist and Wife Charged in Heath Care Fraud Scheme and Conspiracy to Violate Iranian SanctionsRead the Press Release
HOUSTON – A federal grand jury has returned a four-count, superseding indictment against urologist Hossein Lahiji M.D. and his wife, attorney Najmeh Vahid Lahiji, both of McAllen and San Antonio, United States Attorney Kenneth Magidson announced today. The second superseding Indictment, returned late yesterday, charges the couple with conspiracy to commit health care fraud, health care fraud and for conspiring to violate Iranian sanctions.
The Lahijis are set to appear in Houston tomorrow morning at 9:45 before U.S. District Judge Mary Milloy.
This indictment alleges the Lahijis conspired to violate Iranian Sanctions by transferring approximately $1.1 million to Iran. The Lahijis allegedly utilized an unlicensed money remitting business called the Espadana Exchange to avoid the United States banking regulations and to allegedly make it appear they were not violating the United States embargo with Iran. The indictment alleges the defendants sent some of the monies representing profits of their alleged illegal health care fraud scheme to Iran for the purpose of making an investment on behalf of Hossein Lahiji and Najmeh Vahid Lahiji in real estate rental property in Iran, all in violation of the Iranian sanctions.
“The Internal Revenue Service (IRS) will tenaciously pursue individuals who violate international emergency economic powers statutes,” said IRS-Criminal Investigation (CI) Special Agent in Charge Lucy Cruz. “IRS-CI's unique skill set is to unravel the often concealed complex networks used to disguise international financial crimes.”
The health care fraud scheme alleged in this indictment accuses Hossein and Najmeh Lahiji of conspiring to defraud multiple health care benefit programs by submitting false and fraudulent claims in connection with the use of unlicensed and unqualified medical personal and for billing for medical services not rendered. The scheme allegedly ran from January 2003 through Feb. 24, 2012, and involved Medicare, Medicaid, Aetna, Blue Cross Blue Shield, Humana and United Healthcare. The indictment further alleges the Lahijis submitted claims to these health care benefit programs for urology services allegedly performed by Hossein Lahiji M.D. when, in fact, he was traveling outside Texas and outside the United States. The individuals, who were only licensed as medical assistants, were the ones actually performing these “urology services” without any supervision from any physician or other qualified, licensed personal in violation of protocols established by Medicare, Medicaid, private health insurance and the state of Texas.
The scheme also allegedly involved specific days in which Hossein Lahiji claimed to treat between 65 to 117 patients per day during the office hours of 7:00 a.m. to 6:00 p.m. The indictment further alleges false and fraudulent representations including that Hossein Lahiji had conducted a “consultation” for another physician. In reality, he allegedly performed routine medical services for a patient of his own, a practice known as “upcoding. Lahiji allegedly indicated that the patient’s medical situation had necessitated a comprehensive physical examination and the taking of a comprehensive medical history. However, The patient’s situation had not required such an examination or history-taking, and Hossein Lahiji had not performed such services, according to the indictment.
The Indictment also contains two substantive counts of health care fraud occurring on July 1, 2009 and July 28, 2009.
Hossein Lahiji M.D. is a physician investor in the physician-owned hospital, Doctor’s Hospital at Renassiance, in Edinburg.
The Lahijis each face a sentence of up to 10 years in prison and a maximum $250,000 fine if convicted of the health care offenses as well as a maximum of 20 years in prison and a possible $1 million fine upon conviction of conspiracy to violate Iranian sanctions.
The Lahijis are currently scheduled for a jury trial in Southern District of Texas on March 25, 2013. They are also scheduled for trial in the District of Oregon on June 4, 2013, on unrelated federal charges.
The investigation leading to the charges in this case was conducted by the FBI, the Texas Attorney General’s Medicaid Fraud Control Unit and IRS-CI. Assistant United States Attorneys Carolyn Ferko and Jim McAlister are prosecuting the case.
An Indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.Manhattan U.S. Attorney Announces Criminal Division Appointment of Chief of AppealsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today the appointment of Michael A. Levy as Chief of the Appeals Unit. Mr. Levy will replace Katherine P. Failla, who was recently confirmed by the U.S. Senate to serve as a federal judge in the Southern District of New York.
Mr. Levy joined the Office in October 2002. Prior to being named Chief of the Appeals Unit, he was a member of the Office’s Securities and Commodities Fraud Task Force. Mr. Levy was also Deputy Chief of the Appeals Unit from 2009 to 2010, and served in the Public Corruption, Major Crimes, Narcotics, and General Crimes Units. During his time in the Office, Mr. Levy successfully prosecuted Joseph Collins for his participation in the $2.4 billion Refco fraud, Efrain Gonzalez, Jr., a former New York State senator from the Bronx, for fraudulently using two not-for-profit organizations to pay his personal expenses, and all three defendants in U.S. v. Jorge Cedeno, et al. for their roles as armed gunmen in a truck hijacking ring that operated in the tri-state area.
After law school, Mr. Levy clerked for the Honorable Jed S. Rakoff of the U.S. District Court for the Southern District of New York, and worked as an associate at Sidley Austin LLP. Mr. Levy is a graduate of Harvard College and the University of Virginia School of Law.
In making this appointment, Mr. Bharara stated: “Michael Levy has established a track record of excellence more than a decade-long during his tenure in this Office. I have no doubt he will continue his exceptional work as Chief of the Appeals Unit and I thank him for his service.”
Manhattan U.S. Attorney Announces Charges Against Demolition Company Operators for Scheme to Underpay Employees by More Than $650,000 in Violation of Federal Prevailing Wage LawRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Rose Gill Hearn, the Commissioner of the New York City Department of Investigation (“DOI”), Robert Panella, the Special Agent-in-Charge of the New York Field Office of the U.S. Department of Labor's Office of Inspector General, Office of Labor Racketeering and Fraud Investigations ("DOL-OIG"), and Vanessa Jones-Allen, the Assistant Special Agent-in-Charge of the New York Area Office of Criminal Enforcement for the United States Environmental Protection Agency ("EPA") announced the filing of a four-count criminal Complaint charging JOVER NARANJO, the owner and president of Enviro & Demo Masters, Inc. (“Enviro”), and his father, LUPERIO NARANJO, SR., a foreman for Enviro, for allegedly perpetrating a scheme to underpay employees in violation of the federal prevailing wage law. NARANJO and NARANJO, SR. were arrested this morning in Queens, New York, and are expected to be presented in Manhattan federal court before U.S. Magistrate Judge Ronald L. Ellis later today.
Manhattan U.S. Attorney Preet Bharara said: “Federal contracts come with certain legal obligations, and in this case, one of them was to pay the prevailing wage – a legal requirement this father and son allegedly violated. Protecting workers and ensuring that federal funds are not abused by dishonest contractors is a priority of this office.”
DOI Commissioner Rose Gill Hearn said: “These defendants worked overtime to spin a web of lies around their employees and the City taxpayers, according to the criminal complaint. Their charged conduct is not the way to do business in New York City. DOI was pleased to join its federal partners to expose and stop the fraud and protect workers.”
DOL-OIG Special Agent-in-Charge Robert Panella said: “Today’s charges are the result of our commitment to investigate those who would allegedly falsify payroll records to avoid paying their workers the required prevailing wage. The Office of Inspector General will continue to work closely with its law enforcement partners to this end.”
EPA Assistant Special Agent-in-Charge Vanessa Jones-Allen said: “Through the course of this investigation, we were able to uncover an illegal scheme and stop a business owner who cut workers’ pay and benefits to make a profit. While EPA federal agents focus on investigating allegations of environmental crimes, we also readily provide support and expertise to our state and federal colleagues in developing cases that protect Americans from criminal activity that threatens their lives or livelihoods.”
According to the Complaint unsealed earlier today in Manhattan federal court:
In August 2009, NARANJO was awarded a sub-contract by the general contractor on a New York City project to demolish buildings in Upper Manhattan (the “Contract”) that was federally-funded. From August 2009 through February 2010, he and NARANJO, SR. participated in a scheme to submit fraudulent certified payrolls to the New York City Department of Housing Preservation and Development (“HPD”) in connection with the Contract.
The fraudulent certified payrolls indicated that Enviro was paying its employees the federal prevailing wage, as required by federal law, but in reality, they were being paid far less. Although the lowest applicable federal prevailing wage for Enviro employees working on the Contract was $20.74 per hour for demolition laborers, NARANJO and NARANJO, SR. paid their demolition workers as little as $13 per hour. In the six-month period charged in the Complaint, the total amount of salary underpaid by NARANJO and NARANJO, SR. to Enviro employees working on the Contract was in excess of $650,000.
NARANJO and NARANJO, SR. took a number of steps to conceal their fraud. For example, they told their employees to lie about their identities, work schedules, and pay rates if they were questioned by investigators. When an employee truthfully told investigators that the employee was paid below the prevailing wage, NARANJO and NARANJO, SR. fired the employee and the employee’s relative.
On certain occasions when the defendants did pay their employees the prevailing wage, it was part of a kickback arrangement. The defendants paid the prevailing wage by check to document their supposed compliance with the law, but then required employees to return the portion of the check that was above and beyond the employees’ illegally low wage.
NARANJO, 36, and NARANJO, SR., 65, both of Queens, New York, are each charged with one count of mail fraud, conspiracy to commit mail fraud, witness tampering, and conspiracy to commit witness tampering. Each faces a maximum total sentence of 65 years in prison if convicted.
Mr. Bharara praised the investigative work of DOL-OIG, DOI, and the EPA.
The case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorney Alvin Bragg is 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.
U.S. v. Jover Naranjo et al. Complaint
Man Convicted of Tax EvasionRead the Press Release
HOUSTON – Eric P. Garcia has entered a plea of guilty to one count of tax evasion, United States Attorney Kenneth Magidson announced today along with Lucy Cruz, special agent in charge of Internal Revenue Service - Criminal Investigation.
Garcia admitted in the written plea agreement he willfully filed an income tax return for 2007 claiming he owed only $22,223 in income taxes. However, he knew the correct amount of income taxes he owed for the year was approximately $275,694. Garcia further acknowledged he owed additional income taxes for years 2005 through 2009 totaling $765,041. Garcia admitted he willfully claimed inflated expenses on his income tax returns in order to evade his income tax liabilities.
U.S. District Judge Nancy F. Atlas, who accepted the guilty plea, has set sentencing for May 30, 2013, at which time he faces up to five years of imprisonment and a possible $250,000 fine.
This matter was investigated by IRS-CI and is being prosecuted by Assistant U.S. Attorney Charles J. Escher.Local Man Indicted on Fraud ChargesRead the Press Release
St. Louis, MO - Larry Bradshaw was indicted involving his alleged scheme to defraud a local lady by obtaining a reverse mortgage on her home, then using the money for himself, including the purchase of a car and illegal drugs.
According to the indictment, in July 2008, Bradshaw met a lady and expressed a need for a temporary residence. She agreed to allow him to live with her and during that time, Bradshaw befriended her and gained her confidence. He told her he was acting in her best interest, instead, he allegedly used his ability to access her banking accounts and funds to support his own life style without her knowledge or consent. The indictment alleges that Bradshaw set up a durable power of attorney, and used it to obtain a reverse mortgage on the lady’s residence. He represented to Frontier Mortgage that he intended to use the proceeds from the reverse mortgage for her living expenses and home rehabilitation. Instead, he used the money for himself, including the purchase of an automobile and illegal drugs, totaling over $70,000. Additionally, the indictment alleges that Bradshaw was receiving disability beginning in 2007, and was required to fill out forms verifying his continued disability. But, in December 2008, he falsified the form by failing to report that he received the reverse mortgage money.
Bradshaw, 55, St. Louis City, was indicted by a federal grand jury on one felony count of wire fraud and one felony count of theft of government money. He turned himself in to federal authorities earlier today.
If convicted, wire fraud carries a maximum penalty of 30 years in prison and/or fines up to $1 million; each count of theft of government money carries a maximum of 10 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Housing Finance Agency Office of Inspector General and the Social Security Administration. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney's Office.As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
KC Man Sentenced to 19 Years for Illegal Firearm Used to Threaten, Beat WomanRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for illegally possessing a firearm that he used to threaten and beat a woman.
Jervonz L. Williams, 37, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to 19 years in federal prison without parole. Williams was sentenced as an armed career offender due to his prior felony convictions.
On Nov. 14, 2012, Williams pleaded guilty to being a felon in possession of a firearm. Williams admitted that he was in possession of a Smith and Wesson .38-caliber revolver.
According to court documents, Williams attacked a woman near a parking lot at 70th and Troost on May 4, 2012, striking her in the back of the head with the revolver and repeatedly kicking her and striking her with his hands and with a green glass bottle until she was unconscious. Two witnesses saw Williams point the gun at his victim’s head. One of the witnesses reported that Williams put the gun to the victim’s head and said, “I ought to blow your … brains out.” Williams also pulled the handgun from his pocket and pointed it in the direction of one of the witnesses. Witnesses called the police, who arrested Williams and found the revolver in his pocket.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Williams has five prior felony convictions, including three prior felony convictions for burglary and prior felony convictions for aggravated sexual battery and robbery.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. 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.KC Man Sentenced to 16 Years for Illegal FirearmRead the Press Release
Project Ceasefire
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Seab Nolen, 51, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to 16 years in federal prison without parole. Nolen was sentenced as an armed career offender due to his prior felony convictions.
On Oct. 15, 2012, Nolen pleaded guilty to being a felon in possession of a firearm. Williams admitted that he was in possession of an RG Industries .22-caliber revolver.
According to court documents, police officers were called to Nolen’s residence for a disturbance involving a weapon on June 3, 2012. Nolen had left the residence, but was located by police officers and arrested. Officers searched the residence and found the handgun in a blue plastic bin in the closet.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Nolen has nine felony convictions, including three prior felony convictions for theft and prior felony convictions for burglary, aggravated battery, criminal damage to property, unlawful use of a weapon by exhibiting it in an angry or threatening manner, possession of a controlled substance and domestic assault.
This case is being prosecuted by Assistant U.S. Attorney Bruce E. Clark. 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.Justice Department Announces Investigation of the <br /> Cleveland Division of PoliceRead the Press Release
The Justice Department announced today that it has opened a pattern or practice investigation into use of force by the Cleveland Division of Police (CPD). The investigation will focus on allegations that CPD officers use excessive force, including unreasonable deadly force, and on the adequacy of CPD’s training, supervision, and accountability mechanisms that are essential to effective, constitutional policing.
The Justice Department’s investigation will determine whether CPD officers engage in a pattern or practice of using excessive force in violation of the Constitution and federal law. This investigation will include a comprehensive review of CPD’s policies, procedures, training, accountability systems, and community engagement. As part of this investigation, the Justice Department will reach out to community members and groups for help in identifying potential problems within the police department.
Department officials have met with Cleveland Mayor Frank Jackson, CPD Chief Michael McGrath, and Director of Public Safety Martin Flask and will continue to work closely with both the city and CPD as the investigation progresses.
“Police officers across the country are called upon to protect and safeguard members of their communities and are afforded the authority they need to do so, including the authority to use deadly force,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “It is absolutely imperative that officers use that authority responsibly and within the boundaries of the law. We are eager to work together with the city of Cleveland and its police department to help ensure that its officers are best serving the individuals they are sworn to protect.”
“As we begin this process, our commitment to this community and this city is to conduct a thorough and fair investigation,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio. “Our joint goal cannot be to invent tough issues, nor can we hide from them if they exist. The Mayor, among others, requested this investigation, and we hope that with the continued cooperation of the city and the community we can ensure Cleveland’s residents receive top notch police protection.”
The Violent Crime Control and Law Enforcement Act of 1994 prohibits state and local governments from engaging in a pattern or practice of misconduct by law enforcement officers that deprives individuals of federally-protected rights. The act also allows the Justice Department to remedy such misconduct through civil litigation. The Justice Department has conducted similar investigations and has obtained important reforms in police departments and law enforcement agencies across the country.
The Special Litigation Section of the Justice Department’s Civil Rights Division, in Washington, D.C., and the U.S. Attorney’s Office for the Northern District of Ohio, in Cleveland, are jointly conducting this investigation. Individuals with relevant information are encouraged to contact the Justice Department via email at [email protected] or by phone at (202) 307-6479.
Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt . Additional information about the U.S. Attorney’s Office for the Northern District of Ohio is available on its website at www.justice.gov/usao/ohn .
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Assistant Attorney General Thomas E. Perez Speaks at the Cleveland Police Department Press Conference
Justice Department Announces Investigation of Cleveland Division of PoliceRead the Press Release
The Justice Department announced today that it has opened a pattern or practice investigation into use of force by the Cleveland Division of Police (“CPD”). The investigation will focus on allegations that CPD officers use excessive force, including unreasonable deadly force, and on the adequacy of CPD’s training, supervision, and accountability mechanisms that are essential to effective, constitutional policing.
The Justice Department’s investigation will determine whether CPD officers engage in a pattern or practice of using excessive force in violation of the Constitution and federal law. This investigation will include a comprehensive review of CPD’s policies, procedures, training, accountability systems, and community engagement. As part of this investigation, the Justice Department will reach out to community members and groups for help in identifying potential problems within the police department.
Department officials have met with Cleveland Mayor Frank Jackson, CPD Chief Michael McGrath, and Director of Public Safety Martin Flask and will continue to work closely with both the City and CPD as the investigation progresses.
“Police officers across the country are called upon to protect and safeguard members of their communities and are afforded the authority they need to do so, including the authority to use deadly force,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “It is absolutely imperative that officers use that authority responsibly and within the boundaries of the law. We are eager to work together with the City of Cleveland and its police department to help ensure that its officers are best serving the individuals they are sworn to protect.”
“As we begin this process, our commitment to this community and this city is to conduct a thorough and fair investigation,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio. “Our joint goal cannot be to invent tough issues, nor can we hide from them if they exist. The Mayor, among others, requested this investigation, and we hope that with the continued cooperation of the city and the community we can ensure Cleveland’s residents receive top notch police protection.”
The Violent Crime Control and Law Enforcement Act of 1994 prohibits state and local governments from engaging in a pattern or practice of misconduct by law enforcement officers that deprives individuals of federally-protected rights. The Act also allows the Justice Department to remedy such misconduct through civil litigation. The Justice Department has conducted similar investigations and has obtained important reforms in police departments and law enforcement agencies across the country.
The Special Litigation Section of the Justice Department’s Civil Rights Division, in Washington, D.C., and the U.S. Attorney’s Office for the Northern District of Ohio, in Cleveland, are jointly conducting this investigation. Individuals with relevant information are encouraged to contact the Justice Department via email at [email protected] or by phone at (202) 307-6479.
Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office for the Northern District of Ohio is available on its website at http://www.justice.gov/usao/ohn/.
Judge Sentences Pittsburgh Man to Prison for Conspiring to Sell HeroinRead the Press Release
PITTSBURGH - A Pittsburgh resident has been sentenced in federal court for violating federal narcotics trafficking laws, United States Attorney David J. Hickton announced today.
Clarence Thompson, 56, was sentenced to serve 80 months in prison followed by four years of supervised release by United States District Judge Arthur J. Schwab. From January 2010 to March 3, 2011, Thompson conspired to distribute and possess with intent to distribute at least 400 grams of heroin. Thompson’s federal sentence was ordered to be served consecutively to any sentence imposed for his pending state drug charges that were filed while he was on bond in his federal case.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pittsburgh Bureau of Police, the United States Postal Inspection Service, the Pennsylvania State Police, the Allegheny County Sheriff's Office, the Ross Township Police Department, the Canonsburg Police Department, and the Allegheny County Police Department for the successful investigation leading to the conviction and sentence in this case.
Judge Orders Prison and $308,554 Restitution for Former Bank OfficerRead the Press Release
BIRMINGHAM – A federal judge today sentenced a former officer at a Birmingham bank to six months in prison, followed by six months home detention, plus three years of supervised release for a five-year fraud through which she stole almost $275,000 from her employer, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
U.S. District Judge R. David Proctor sentenced ALLISON MCCLELLAN, 40, of Odenville, on one count of computer fraud, and ordered her to pay $308,554 in restitution to SouthPoint Bank where she worked as its loan operations manager. McClellan had agreed to pay that amount in restitution as part of her plea agreement with the government. She pleaded guilty to the computer fraud in November. The restitution reflects the $274,775 she stole from SouthPoint, plus the $33,779 the bank spent in investigative and legal fees related to the crime.
McClellan worked at SouthPoint from 2005 to 2012. She used her computer access as the bank's loan operations manager to defraud the bank between 2007 and 2012.
According to her plea agreement, she used her computer access to fraudulently increase the home equity line of credit she and her husband obtained from the bank in February 2006. She increased the credit line 69 times between October 2007 and April 2012, raising it from $65,000 to $328,000. McClellan also fraudulently increased a personal line of credit she obtained from SouthPoint in 2005, raising it 11 times in 2009 and 2010 to reach a $15,000 credit line.
The FBI investigated the case, and it was prosecuted by Assistant U.S. Attorney Henry Cornelius.
Jefferson County Man Pleads Guilty to Receiving Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Ryan D. Kasler, 31, of Mt. Pleasant, Ohio pleaded guilty in U.S. District Court today to one count of illegal receipt of child pornography. The plea agreement provides for a sentence of 180 months in prison.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Dugan T. Wong, Inspector in Charge, U.S. Postal Inspection Service and William Hayes, acting special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Ohio and Michigan, announced the plea entered today before U.S. Magistrate Judge Norah McCann King.
According to testimony presented during the plea hearing, Kasler was identified during an investigation by Postal Inspectors into subjects who received child pornography through the U.S. Mail. Records indicated Kasler bought 17 separate videos or photo collections through the mail.
Investigators executed a search warrant at Kasler’s home in December 2012 and seized videos, a computer and storage media containing child pornography. Agents arrested Kasler, who has been in custody since his arrest.
The court will conduct a pre-sentence investigation prior to deciding whether or not to accept the terms of the plea agreement. If, after viewing the presentence investigation report, the Court is unwilling to accept this plea agreement due to this binding recommendation on the appropriate sentence, either party may withdraw from the provisions of this plea agreement, the defendant may withdraw his plea of guilty, and the case will proceed to trial. If the court accepts the terms of the plea agreement, a date for sentencing will be set.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Stewart commended the cooperative investigation by Postal Inspectors and HSI agents, as well as Assistant U.S. Attorney Heather Hill, who is representing the United States in this case.
Investment Research Firm President Sentenced in Manhattan Federal Court to One Year and One Day in Prison for Insider Trading Conspiracy ChargeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that TAI NGUYEN was sentenced today in Manhattan federal court to one year and one day in prison for conspiring to commit securities fraud and wire fraud in connection with an insider trading scheme in which NGUYEN, the president of Insight Research, LLC, an investment research firm, and a paid consultant of an expert networking firm, provided material, nonpublic information to members of the investment community. NGUYEN obtained the information which concerned quarterly financial results for Abaxis Inc., a California biotechnology company (the “Abaxis Inside Information”), from a family member employed in Abaxis’s Finance Department (the “Abaxis Insider”). He pled guilty in June 2012. NGUYEN was sentenced by U.S. District Judge Naomi Reice Buchwald.
Manhattan U.S. Attorney Preet Bharara said: “Tai Nguyen exploited a family member’s access to confidential and proprietary information to make a quick buck for himself, and to curry favor with others who could help his business. And now he is the latest in a long line of privileged professionals who has lost his liberty as a result.”
According to the Information and statements made during NGUYEN’s guilty plea and other court proceedings:
From 2006 through mid-2009, NGUYEN obtained detailed information from the Abaxis Insider about the company’s anticipated revenues, earnings, gross margins, and other financial results prior to the company’s quarterly announcements. On multiple occasions, NGUYEN provided the Abaxis Inside Information to Noah Freeman, a research analyst at a hedge fund based in Boston, Massachusetts, and to Samir Barai, a portfolio manager at two separate hedge funds in New York, New York.
As a result of NGUYEN having provided the Abaxis Inside Information, Freeman’s hedge fund earned more than $4.5 million between July 2006 and May 2009, and Barai’s hedge fund earned over $1.7 million between July 2008 and September 2009. In exchange for the Abaxis Inside Information, Freeman’s and Barai’s hedge funds paid Insight Research and/or NGUYEN consulting fees of several thousand dollars per month. At various times, Insight Research earned consulting fees of more than $15,000 a month from just one of these hedge fund clients.
In addition to passing on the Abaxis Inside Information to Freeman and Barai, NGUYEN used the information to trade Abaxis stock in his personal brokerage account on numerous occasions between 2006 and 2009. As a result of his own trading activity, NGUYEN earned over $147,000 during that time period.
In addition to the prison term, Judge Buchwald sentenced NGUYEN, 49, of Oregon City, Oregon, to one year of supervised release. NGUYEN was also ordered to forfeit $400,000 and pay a $100 special assessment fee.
Freeman, 37, of Boston, Massachusetts, pled guilty in February 2011 to one count of conspiracy to commit securities fraud and wire fraud, and one count of securities fraud. He is awaiting sentencing.
Barai, 41, of New York, New York, pled guilty in May 2011 to one count of conspiracy to commit securities fraud and wire fraud, one count of securities fraud, one count of wire fraud, and one count of obstruction of justice. He is awaiting sentencing.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation. He also thanked the U.S. Securities and Exchange Commission.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney David I. Miller is in charge of the prosecution.
Informational: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on March 13, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, the following individuals were arraigned:
JAMES STANLEY HATLEY, age 28, STACY RENEE FOX, age 35, residents of Yakima, Washington, and ERVIN SALGADO OSARIO, a 32-year-old resident of Toppenish, Washington, appeared on charges of conspiracy to distribute methamphetamine and distribution of methamphetamine. They are currently released on special conditions. If convicted of these charges, they each face possible penalties of a mandatory minimum of 5 years and could be sentenced to 40 years, a $2,000,000 fine, and four years supervised release. Assistant U.S. Attorney Tara J. Elliott is the prosecutor for the United States. The investigation was a cooperative effort between the Federal Bureau of Investigation and the Montana Division of Criminal Investigation.
DANIEL AARON ROY, a resident of Missoula, appeared on charges of conspiracy to distribute methamphetamine, possession with the intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime. He is currently detained If convicted of these charges, ROY faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to life, a $10,000,000 fine, and 5 years supervised release. Assistant U.S. Attorney Tara J. Elliott is the prosecutor for the United States. The investigation was conducted by the Missoula High Intensity Drug Trafficking Area (HIDTA) Task Force.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on March 12, 2013, before U.S. Magistrate Judge Keith Strong, the following individuals were arraigned:
ROY ALEXANDER BRIGGS, a 34-year-old resident of Helena, appeared on charges of possession of child pornography and failure to register as a sexual offender. He is currently detained. If convicted of these charges, BRIGGS faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to 20 years, a $250,000 fine, and lifetime supervision. Assistant U.S. Attorney Marcia K. Hurd is the prosecutor for the United States. The investigation was a cooperative effort between the Federal Bureau of Investigation, the Helena Police Department, the U.S. Department of Homeland Security - Homeland Security Investigations, the Montana Division of Criminal Investigation, and the Montana Internet Crimes Against Children (ICAC) Task Force.
CORWIN DALLAS FOURSTAR, a 19-year-old resident of Wolf Point, appeared on charges of aggravated sexual abuse and sexual abuse. He is currently detained. If convicted of these charges, FOURSTAR faces possible penalties of life in prison, a $250,000 fine, and lifetime supervision. Assistant U.S. Attorney Laura B. Wess is the prosecutor for the United States. The investigation was a cooperative effort between the Federal Bureau of Investigation and the Fort Peck Tribes Criminal Investigation Division.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on March 13, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, the following individual was arraigned:
MICHELLE RENEE KINDNESS, a 47-year-old resident of Billings, appeared on charges of conspiracy to distribute methamphetamine, possession with the intent to distribute methamphetamine, and distribution of methamphetamine. She is currently detained. If convicted of these charges, KINDNESS faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to life, a $4,000,000 fine, and 5 years supervised release. Assistant U.S. Attorney Lori Harper Suek is the prosecutor for the United States. The investigation was a cooperative effort between the Bureau of Indian Affairs and the Federal Bureau of Investigation.
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on March 14, 2013, before U.S. Magistrate Judge Keith Strong, the following individual was arraigned:
JOURDEN ST. MARKS, a 23-year-old resident of the Rocky Boy's Reservation, appeared on a charge of assault resulting in serious bodily injury. He is currently detained. If convicted of this charge, ST. MARKS faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Danna R. Jackson is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
The defendant pled not guilty to the charge.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Indictment Unsealed Following Arrest of Individuals Allegedly Involved in Scam to Distribute Misbranded DrugsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that an indictment charging four individuals with allegedly being involved in a scam to distribute misbranded drugs through businesses located in York County and conceal the unlawful profits has been unsealed.
The indictment returned by a Harrisburg grand jury on March 8 was sealed pending the arrest of the defendants.
According to United States Attorney Peter J. Smith, Almuntasser “Alex” Hbaiu, age 34, of Los Angeles, California, was previously charged with criminal conspiracy, delivery of misbranded drugs, receipt of misbranded drugs, and two counts of wire fraud. On March 8, the Grand Jury returned a second superseding indictment that charged Alex Hbaiu with additional offenses of structuring financial transactions and bank fraud.
The new indictment also charged three additional defendants. Ahed Hbaiu, age 32, of Etters, Pennsylvania, is charged with criminal conspiracy, delivery of misbranded drugs in interstate commerce, receipt of misbranded drugs in interstate commerce, structuring financial transactions, bank fraud, and engaging in monetary transactions with criminally derived property worth more than $10,000.Gil Conrad Dizon, age 28, of Los Angeles, California, is charged with criminal conspiracy, delivery of misbranded drugs in interstate commerce, receipt of misbranded drugs in interstate commerce, two counts of wire fraud, and structuring financial transactions. Christopher Mouzon, age 27, of Los Angeles, California, is charged criminal conspiracy, structuring financial transactions and perjury.
The second superseding indictment charges that the four men were involved with various companies that sold drugs including “Mojo Nights,” “Libigrow” and “Blue Diamond” that were marketed as “all-natural” versions of sexual enhancement drugs such as Viagra. In fact, the drugs contained sildenafil citrate, the active ingredient in Viagra, and Tadalafil, the active ingredient in Cialis. Both are prescription drugs approved by the U.S. Food and Drug Administration for the treatment of erectile dysfunction. The misbranded “performance enhancers” products were sold on internet web sites as well as physical locations, including a location in York County.
In addition, according to the second superseding indictment, the four defendants conspired to avoid the requirement that banks report cash transactions of $10,000 or more by “structuring” deposits made into various bank accounts. The conspirators made cash deposits of less than $10,000 in their accounts as well as accounts of family members and associates and then transferred the money to accounts controlled by them, their family members, or associates. Some of the funds “structured” in this fashion were used to pay off the mortgage on a residence at 1806 Meadow Ridge Drive, Hummelstown, Pennsylvania, which was eventually titled to Alex Hbaiu. Other structured funds were used to fund the business operations of Caliber Investments; 1 Stop Sunoco Gas Station and Eclipse Builders, both located in located in Etters, York County.
The second superseding indictment further charges that Ahed Hbaiu committed bank fraud by obtaining a credit card in his mother’s name and using the card to purchase construction equipment for his business, Eclipse Builders. Ahed Hbaiu’s mother filed for bankruptcy after only a few payments were made and the credit card debt was discharged. Ahed Hbaiu and Alex Hbaiu are also charged with obtaining credit cards in the name of an individual who is serving a sentence of life imprisonment in Florida and making false representations on credit card applications.
The charge of engaging in monetary transactions of over $10,000 with money obtained through criminal activity stems from Ahed Hbaiu’s purchase of construction equipment with the money obtained from the bank fraud.
According to the allegations in the second superseding indictment, Christopher Mouzon committed perjury when he testified before the Grand Jury on October 3, 2012.The second superseding indictment also seeks forfeiture of a number of bank accounts and the property at 1806 Meadow Ridge Drive, Hummelstown.
Ahed Hbaiu reportedly left the country last week and Dizon is purportedly in the Philippines. Warrants have been issued for their arrest. Mouzon was arrested Wednesday in California.
The case was investigated by the Internal Revenue Service-Criminal Investigation, the Food and Drug Administration Office of Criminal Investigations, and the Drug Enforcement Administration. It is assigned to Assistant U.S. Attorney Christy H. Fawcett.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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.
Indictment Unsealed Against Alleged Members of Heroin Smuggling RingRead the Press Release
PHILADELPHIA - A second superseding indictment was unsealed today charging eleven people in a conspiracy that involved secreting packets of heroin inside the body, in order to smuggle the drugs into the United States from the Dominican Republic, drug charges and kidnapping. The indictment names defendants Higinio Castillo and Michael Nunez-Rodriguez as the alleged leaders of the Castillo Drug Smuggling Organization (CDSO). Members of the CDSO acted as couriers and recruited other individuals to act as couriers smuggling the drugs inside their bodies or in luggage. The CDSO paid the couriers’ travel expenses, helped them obtain U.S. Passports, and drove them to and from the U.S. airports. The indictment alleges that the CDSO operated in Philadelphia from November 2010 through March 2012 smuggling at least six kilograms of heroin into the United States during that time period.
Charged with Castillo and Nunez-Rodriguez are: Philip Osley, Yeltsin Genao, Kelvin Perez, Adrian DeJesus, Tommy Figueroa, Argenes Peralta, Carlos Ruben Cotto-Leon, Dilcy Herminia Almanzar, and Jiliana Urena, all of Philadelphia. The charges were announced today by United States Attorney Zane David Memeger and Special Agent-in-Charge John Kelleghan with U.S. Immigration and Customs Enforcement Homeland Security Investigations.The CDSO allegedly enforced its hold on couriers and prevented theft of its product through threats and intimidation. The indictment alleges that on August 24, 2011, defendants Nunez-Rodriguez, Genao and Perez drove from Camden, NJ, to Philadelphia to locate “S.R.,”a person believed to have stolen the heroin that he was tasked with smuggling. The defendants drove S.R. to a house on 19th Street in Philadelphia where Castillo and DeJesus were waiting. The five conspirators interrogated S.R. by binding his hands and feet, making threats on his life, and discharging a firearm at close range. S.R. was eventually released with no serious physical injury. The indictment further alleges that on September 5,2011, defendants Nunez-Rodriguez and Figueroa went to the homes of courier “C.D.” after C.D. did not appear at the airport the previous night as expected. Figueroa pointed a gun at the person who answered the door and forced his way into the home to search for C.D. The defendants left after not finding C.D.
According to the indictment, the couriers traveled to and from the Dominican Republic on commercial flights that landed at Philadelphia International Airport, Newark Liberty International Airport in Newark, NJ, and JFK International Airport in Brooklyn, NY.
Defendant DeJesus was taken in to custody last night; the remaining defendants have been in federal custody.
If convicted of all charges, each defendant faces a mandatory minimum sentence of 10 years in prison up to life in prison, a mandatory minimum five years of supervised release up to a lifetime of supervised release, possible fines, and mandatory special assessments. Defendants convicted of firearm charges face an additional consecutive mandatory term of seven years in prison. The government is also seeking forfeiture of all assets derived from any criminal activity.
The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations with assistance from United States Customs and Border Protection, the Philadelphia Police Department, Pennsylvania State Police, and the Philadelphia District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Nancy Rue.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Illinois man pleads guilty to failing to register as a sex offenderRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul. Jr. announced today that Marcus Tunstall, 38, formerly of St. Louis, Illinois, pleaded guilty to failing to register as a sex offender before U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of 10 years in prison and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that the defendant left the State of Illinois in August 2012 to come to the Western District of New York and knowingly failed to register as a sex offender. In addition, Tunstall failed to update his registration status with Illinois authorities to advise them that he had left that state.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.The plea is the culmination of an investigation on the part of the United States Marshals Service, under the direction of Marshal Charles Salina.
Sentencing is scheduled for May 30, 2013 at 3:00 p.m. before Judge Geraci.
Identity Theft Ringleader Gets 12 Year Prison SentenceRead the Press Release
PHILADELPHIA - Lawrence Fudge, 47, of Philadelphia, was sentenced today to 144 months in prison for running a fraud and identity theft ring in Philadelphia for at least six years. Fudge pleaded guilty in December 2012 to conspiracy, six counts of bank fraud, eight counts of access device fraud and 18 counts of aggravated identity theft. Through the course of the scheme, Fudge recruited bank employees and an insurance company employee to abuse the trust placed in them by their employers and pass on to him the bank account and personal information of dozens of victims. He insulated himself from the actual fraudulent transactions by recruiting others to find sources of victim information and by finding “check runners” to conduct the fraudulent transactions at the banks, to open the fraudulent retail store credit accounts and to make the purchases at the retail stores with those fraudulently-opened accounts. With others, he traveled within and outside Pennsylvania to run his fraud and identity theft scheme. In addition, Fudge admitted that he committed additional crimes of the same nature between September 1, 2011 and November 14, 2012 while he was on pretrial release on this case.
Found in Fudge’s red Toyota truck at the time of his initial arrest, on August 30, 2011, were a number of documents and other items, including driver’s licenses and documents with personal and bank account information in the names of individuals who had not previously been identified by law enforcement as victims. The intended amount of fraud and attempted fraud that is attributed to the illegal activities of Lawrence Fudge and his ring - from conducting fraudulent transactions against victims’ bank accounts and opening retail store credit accounts in victims’ names and then making purchases with those accounts - is more than $357,030.Examples of Fudge’s fraud include: in August 2011, accounts at Home Depot, Lowe’s and Target were opened using the identity of victim C.S. More than $8,000 in purchases were made with those
fraudulent accounts and more than $1,500 was fraudulently withdrawn from her Bank of America bank
account. In that same time frame, accounts at Lowe’s, Target and Sam’s Club were opened using the identity of victim M.W. with more than $15,000 in purchases made with those fraudulent accounts, and additional accounts at Best Buy and Staples attempted to be opened. Also in that same time frame, accounts at Home Depot, Lowe’s, Best Buy and Target were opened using the identity of victim P.V. with more than
$10,000 in purchases made with those fraudulent accounts.Several of the victims have detailed the emotional distress and negative impact these crimes had on their lives. They describe their fear, their feelings of violation, and the lack of safety they now feel and, indeed, may always feel. One victim, who is a widow, described how the theft of the identity of her deceased husband left her “shaken to the core,” with the realization that her husband’s insurance policy, meant to protect his family, was the means of the theft of his identity and her security.
In addition to the prison term, U.S. District Court Judge Lawrence F. Stengel ordered restitution of $311,878, a special assessment of $3,300, and 10 years of supervised release.
The case was investigated by United States Postal Inspection Service and Federal Bureau of Investigation, with the assistance of multiple local police departments. It was prosecuted by Assistant United States Attorney K.T. Newton.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Houston-Area Doctor Sentenced to 63 Months in Prison for Role in $17.3 Million Medicare Fraud SchemeRead the Press Release
A Texas doctor was sentenced today to serve 63 months in prison for conspiring to commit health care fraud by falsifying plans of care for Medicare beneficiaries, including patients whom he did not treat, as part of a $17.3 million Medicare fraud scheme.
Today’s sentence was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Kenneth Magidson of the Southern District of Texas; Special Agent in Charge Stephen L. Morris of the FBI’s Houston Field Office; Special Agent in Charge Mike Fields of the Dallas Regional Office of U.S. Department of Health and Human Services (HHS) Office of Inspector General (OIG), Office of Investigations; and the Texas Attorney General’s Medicaid Fraud Control Unit.
Ben Harris Echols, 63, of Houston, was sentenced by U.S. District Judge Sim Lake of the Southern District of Texas. In addition to his prison term, Echols was sentenced to serve three years of supervised release and ordered to pay $2,918,830 in restitution.
After a four-day trial, a jury convicted Echols on Dec. 13, 2012, of one count of conspiracy to commit health care fraud and six counts of false statements relating to health care matters.According to evidence presented at trial, Echols was a physician practicing in the Houston area. Evidence showed that Echols signed plans of care for Medicare beneficiaries so that fraudulent claims could be billed by home health care companies Family Healthcare Group Inc. and Houston Compassionate Care. Echols signed plans of care for Medicare beneficiaries who were not under his care and about whose conditions he had no knowledge. In many instances, Echols signed plans of care even though other doctors were listed as the attending physician on the documents.
Evidence presented at trial showed that Family Healthcare Group Inc. and Houston Compassionate Care fraudulently billed Medicare for home health services and were paid approximately $17.3 million by Medicare, including $5.5 million for beneficiaries for whom Echols signed a plan of care.
The case was prosecuted by Trial Attorneys Alexander H. Berlin, Abigail B. Taylor and Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section, with assistance from Criminal Division Trial Attorneys Kyle Maurer and Alison Anderson. The case was investigated by the FBI, HHS-OIG, and the Texas Attorney General’s Medicaid Fraud Control Unit.
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Homestead Heroin-Trafficking Ring DismantledRead the Press Release
PITTSBURGH - After a nearly year-long federal, state and local law enforcement investigation into drug trafficking and violence in Homestead, Pa., 34 residents of Pennsylvania, New Jersey and New York have been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today. These charges were contained in six related indictments, returned on March 6 and unsealed today.
"These prosecutions are a continuation of our community impact prosecution strategy where we are going community to community to aggressively eliminate violent criminals," said U.S. Attorney Hickton. "But every day we are also working with committed public-spirited citizens to increase opportunities for our youth; to replace despair with hope; and to give kids at risk and reformed offenders a fair shot to be productive citizens because we know that to best protect the public welfare, we need to work equally hard to prosecute and prevent crime.
"This investigation was a response to the increased violence and incidence of drug trafficking in the Homestead, Pa. area, much of which was attributed to a gang, or criminal enterprise, known as the Uptown Crew," said Gary Douglas Perdue, Special Agent in Charge of the Pittsburgh Division of the FBI. "These indictments are a clear example of the determination and collaborative spirit among area law enforcement agencies to dismantle criminal enterprises that pose the most significant threat."
THE INDICTMENTS
The first indictment, containing seven counts, named:
- Brandon Thompson, 30, of Homestead, Pa.;
- Antonio Hardin, 32, of Monroeville, Pa.;
- James Walker, 44, of Homestead, Pa.;
- Joseph Thompson, II, 25, of Homestead, Pa.;
- Richard Wood, 33, of Swissvale, Pa.;
- Gregory Harris, Jr., 24, of Homestead, Pa.;
- Luther Harper, 27, of Homestead, Pa.; and
- Edward Cook, 25, of Homestead, Pa.
According to the indictment, from in and around April 2012 to in and around February 2013, in the Western District of Pennsylvania and elsewhere, Brandon Thompson, Hardin, Walker, Joseph Thompson, II, Wood, Harris and Harper conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. The indictment also charges that on or about Aug. 12, 2012, Brandon Thompson and Edward Cook used, carried, possessed in furtherance of, brandished and discharged firearms during and in relation to that heroin trafficking conspiracy. The indictment further charges Antonio Hardin with, on or about Feb. 11, 2013, possessing with the intent to distribute a quantity of heroin, possessing a firearm in furtherance of a drug trafficking crime and possession of a firearm by a convicted felon. Last, on or about Jan. 26, 2013, the indictment charges Richard Wood with possession with intent to distribute a quantity of heroin, and charges Walker and Hardin with distribution and possession with intent to distribute a quantity of heroin.
The second indictment, containing one count, named:
- Troy Anderson, 24, of Braddock, Pa.;
- Mark Felder, 25, of Duquesne, Pa.; and
- Dorianne Harris, 20, of Wilkinsburg, Pa.
According to the indictment, from in an around May 2012, and continuing thereafter to in and around February 2013, in the Western District of Pennsylvania and elsewhere, Troy Anderson, Mark Felder and Dorianne Harris conspired with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance.
The third indictment, containing two counts, named:
- Andre Corbett, 20, of Homestead, Pa.;
- Sterling Marshall, 18, of Munhall, Pa.;
- Tireal Wheeler, 19, of Homestead, Pa.; and
- Jordan Murphy, 21, of Homestead, Pa.
According to the indictment, from in an around May 2012, and continuing thereafter to in and around February 2013, in the Western District of Pennsylvania and elsewhere, Andre Corbett, Sterling Marshall, Tireal Wheeler and Jordan Murphy, conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. Additionally, the indictment charged that, during that same time period, those same defendants did knowingly conspire to employ and hire persons under 18 years of age to distribute heroin.
The fourth indictment, containing five counts, named:
- Jay Germany, 22, of Pittsburgh, Pa.;
- Brady Hall, 19, of Pittsburgh, Pa.;
- Jaquan Washington, 23, of Homestead, Pa.;
- Hector Guadalupe, Jr., 36, of Brooklyn, NY;
- Santino Drew, 34, of New Brunswick, NJ;
- Thomas Martinez, 34, of Edison, NJ; and
- Louis Spinnenweber, Jr., 34, of Canonsburg, Pa.
According to the indictment, from in an around May 2012, and continuing thereafter to in and around February 2013, in the Western District of Pennsylvania and elsewhere, Jay Germany, Brady Hall, Jaquan Washington, Hector Guadalupe, Jr., Santino Drew and Thomas Martinez conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. The indictment further charged that, during that same time period, Germany, Hall and Washington did knowingly conspire to employ and hire persons under 18 years of age to distribute heroin. Additionally, on or about Jan. 30, 2013 and Jan. 31, 2013, Drew and Martinez possessed with the intent to distribute 100 grams or more of heroin. Also, on or about Nov. 21, 2012, Louis Spinnenweber, Jr., possessed with the intent to distribute a quantity of a heroin. Last, on or about Oct. 30, 2013, Germany and Hall possessed with the intent to distribute and did distribute a quantity of heroin.
The fifth indictment, containing three counts, named:
- Bryce Harper, 26, of Homestead, Pa.;
- Diamantia Serrano, 19, of McKeesport, Pa.;
- Lacie Harper, 24, of Homestead, Pa.;
- Ryan Harper, 36, of Munhall, Pa.;
- Jamar Harper, 32, of Homestead, Pa.;
- Ronnell Robinson, 19, of Duquesne, Pa.; and
- Seth Lindsey, 18, of Duquesne, Pa.
According to the indictment, from in an around July 2012, and continuing thereafter to in and around February 2013, in the Western District of Pennsylvania and elsewhere, Bryce Harper, Diamantia Serrano, Lacie Harper, Ryan Harper, Jamar Harper, Ronnell Robinson and Seth Lindsey conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. The indictment further charged that, during that same time period, those same defendants did knowingly conspire to employ and hire persons under 18 years of age to distribute heroin. Last, the indictment charges that on or about Sept. 19, 2012, Bryce, Ryan, and Jamar Harper, together with Diamantia Serrano, did possess with the intent to distribute less than 100 grams of heroin.
The sixth indictment, containing four counts, named:
- Thomas Hopes, 21, of Pittsburgh, Pa.;
- Keith Harris, 22, of Homestead, Pa.;
- Anthony Smith, 21, of Homestead, Pa.;
- Hakeem Kirby, 19, of Homestead, Pa.;
- William McDonald, 68, of Homestead, Pa.;
- Ronnell Robinson, 19, of Duquesne, Pa.;
- Gregory Harris, Jr., 24, of Homestead, Pa.; and
- Sterling Marshall, 18, of Munhall, Pa.
According to the indictment, from in an around May 2012, and continuing thereafter to in and around February 2013, in the Western District of Pennsylvania and elsewhere, Thomas Hopes, Keith Harris, Anthony Smith, Hakeem Kirby and William McDonald conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. The indictment further charged that, during that same time period, those same defendants did knowingly conspire to employ and hire persons under 18 years of age to distribute heroin. The indictment also charges that on or about Dec. 18, 2012, Hopes and Kirby possessed with the intent to distribute and did distribute a quantity of heroin. Last, the indictment charges that on or about Jan. 3, 2013, Robinson, Keith and Gregory Harris, Marshall, and Hopes used, carried, possessed in furtherance of, brandished and discharged firearms during and in relation to a drug trafficking crime and a crime of violence.
THE PENALTIES
On the conspiracy to distribute one kilogram or more of heroin count, the law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $10,000,000, or both, for a first-time drug trafficking conviction. For those with one prior felony drug trafficking conviction, the law provides for a maximum total sentence of not less than 20 years and up to life in prison, a fine of $20,000,000 or both, and for those with two prior felony drug trafficking convictions, the law provides for a mandatory minimum sentence of life in prison.
On the firearms' counts charging possession, use, brandishing or discharge of a firearm in furtherance of a crime of violence or a drug trafficking crime, the law provides for a mandatory minimum sentence of five years if the gun is possessed in furtherance of the crime, seven years if the gun is brandished in furtherance of the crime, and 10 years if the gun is discharged in furtherance of the crime. These sentences, by law, must run consecutively to any sentence imposed for the narcotics counts. In addition, the law imposes a fine of up to $250,000.
Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Eric S. Rosen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Pennsylvania Office of the Attorney General, Allegheny County Sheriff's Office, Allegheny County Police Department, Munhall Police Department, West Homestead Police Department and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of these individuals.
Henderson County Felon Sentenced for Federal Firearms ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas - A 50-year-old Athens, Texas man has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Frankie Darrell Durant pleaded guilty on Jan. 8, 2013, to being a felon in possession of a firearm and was sentenced to 57 months in federal prison today by U.S. District Judge Leonard E. Davis.
According to information presented in court, on July 26, 2011, three firearms were located in a storage room in Smith County, Texas which was being rented by Durant. Further investigation revealed Durant was a convicted felon having been previously been found guilty of possession of a controlled substance. As a convicted felon, Durant is prohibited by federal law from owning or possessing firearms or ammunition. Durant was indicted by a federal grand jury on Sep. 12, 2012.
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Texas Department of Public Safety and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.Harrisburg Man Convicted on Federal Charges Related to Gun Violence Investigations in CityRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that following a two-day jury trial before U.S. District Court Judge Sylvia H. Rambo, Carlos C. Hill, age 41, was convicted of possession of a firearm by a previously convicted felon. The jury returned a verdict after three hours.
According to United States Attorney Peter J. Smith, Hill and co-defendant Elijah U. Brown, Jr., were indicted in September 2012 following stepped-up federal efforts to partner with Harrisburg police and the Dauphin County District Attorney’s Office to fight violent crime in Harrisburg. Hill and Brown were charged with possession of a firearm by a convicted felon and possession of a stolen firearm.
The charges resulted from Hill brandishing a stolen firearm at a female victim in the 1600 Block of Park Street in Harrisburg on July 13, 2012.
The firearm was subsequently recovered by the Harrisburg Police Bureau.
Hill faces a statutory minimum of 15 years imprisonment. A sentencing date for Hill has not yet been scheduled. Brown is scheduled for trial on April 1, 2013.
The case was investigated by ATF in coordination with the Harrisburg Police Department. Assistant U.S. Attorney Meredith A. Taylor is handled the prosecution.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is life imprisonment. 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.
Guilty Verdict Returned in South Bend District CourtRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary L. Hatton
www.usdoj.gov/usao/inn/ Fax: (219) 852-2770
South Bend, Indiana -- United States Attorney David Capp announced:
Yulia Yurevna Abair, 43, of South Bend, Indiana, was found guilty at trial on all eight counts of an Indictment charging her with structuring transactions to evade reporting requirement.According to documents filed by the government in this case, structuring includes breaking down a single sum of currency over $10,000 into smaller sums, or conducting a series of cash transactions all at or below $10,000, with the purpose of evading currency transaction reporting requirements. These charges were filed as the result of an investigation by the Internal Revenue Service.This case has been assigned to and will be prosecuted by Assistant United States Attorney Donald Schmid.
Gregg County Man Sentenced for Dealing MethamphetamineRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 49-year-old Kilgore, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Brett Bates pleaded guilty on Mar. 14, 2012, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 120 months in federal prison today by U.S. District Judge Leonard E. Davis.
According to information presented in court, up until May 27, 2011, Bates conspired with other individuals to acquire and distribute methamphetamine in the Gregg County area of East Texas. Bates admitted to being responsible for the distribution of more than 150 grams of methamphetamine during this time. Bates was named in a federal indictment returned by a grand jury on Nov. 2, 2011.
Five of Bates’ co-defendants have also been sentenced. Terri Rhea Young received a sentence of 24 months in federal prison on July 23, 1012. David Christopher Wheeler and Raelene Dawn Ferguson were each sentenced to 46 months in federal prison on July 20, 2012. Matthew Dean Willis was sentenced to 15 months in federal prison on June 12, 2012. Harold Burgess Dickens received a 210 month sentence on Jan. 10, 2013.
This case was investigated by the DEA, Rusk County Sheriff’s Office and Kilgore Police Department and prosecuted by Assistant U.S. Attorney Bill Baldwin.
Greece Woman indicted for supplying guns used in christmas eve shootingRead the Press Release
ROCHESTER, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Rochester returned a three-count indictment charging Dawn Nguyen, 24, of Greece, N.Y., with knowingly making a false statement in connection with the purchase of firearms; selling and disposing of firearms to William Spengler, a known felon; and possession of firearms while being an unlawful user of marijuana. The indictment involves firearms that were used in the Christmas Eve shooting that resulted in the deaths of Webster Police Lt. Michael Chiapperini and Firefighter Tomasz Kaczowka, and seriously injured Firefighters Theodore Scardino and Joseph Hostetter. Each charge carries a maximum penalty of 10 years in prison, a fine of $250,000.00, or both.
Assistant U.S. Attorney Bret A. Puscheck, who is handling the case, stated that according to the indictment, on June 6, 2010, Nguyen made false statements during the purchase of a Bushmaster semiautomatic rifle and a Mossberg 12 gauge shotgun from Gander Mountain in Henrietta, N.Y., in order to acquire the firearms on behalf of William Spengler, Jr. The indictment further alleges that the defendant gave the firearms to William Spengler with the knowledge that he was a convicted felon. The indictment also alleges that Nguyen herself unlawfully possessed the firearms at a time when she was an unlawful user of marijuana.
“While there is no allegation that this defendant was aware that William Spengler would kill two first responders, and seriously injure two others, the fact remains that the defendant stands accused of providing the guns that Spengler used for these purposes,” said U.S. Attorney Hochul. “Given the serious nature of these charges, our Office will push to prosecute this defendant as expeditiously as possible. This case should serve as a warning to any individual who attempts to facilitate the actions of a criminal that you too will be vigorously prosecuted to the fullest extent of the law.”
The indictment is the culmination of an investigation on the part of the Webster Police Department, under the direction of Chief Gerald Pickering, the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley, Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Joseph Anarumo, the New York State Police, under the direction of Major Mark Koss, and the Monroe County Sheriff’s Department, under the direction of Sheriff Patrick O’Flynn.
The fact that the defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Gordonsville Man Indicted on Drug ChargesRead the Press Release
CHARLOTTESVILLE, VIRGINIA -- A Gordonsville man was recently indicted by a Federal grand jury sitting in the United States District Court for the Western District of Virginia in Charlottesville on charges related to the manufacturing of methamphetamine.
On February 27, the grand jury charged Jerry Richard Blackwell, 43, of Gordonsville, Va., with one count of conspiring to manufacture, to possess with the intent to distribute and to distribute over 50 grams of methamphetamine, one count of possessing pseudoephedrine with the intent to manufacture methamphetamine and one count of manufacturing methamphetamine while creating a substantial risk of harm to human life.
The investigation of the case was conducted by the Blue Ridge Narcotics and Gang Task Force and the Drug Enforcement Administration. Special Assistant United States Attorney Robert Abendroth is prosecuting the case for the United States.
At sentencing, Blackwell faces a sentence of 10 years to life in prison and/or a fine of up to $10,000,000 on count one, a maximum possible penalty of up to 20 years in prison and/or a fine of up to $250,000 on count two and a maximum possible penalty of up to 10 years in prison and/or a fine of up to $250,000 on count three.
A Grand Jury indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Fort Myers Man Pleads Guilty to Bank Fraud and Investor FraudRead the Press Release
Fort Myers, Florida - United States Attorney Robert E. O'Neill announces that Gregory Wayne Eagle (62, Cape Coral) pleaded guilty today to four counts of bank fraud, one count of mail fraud, and one count of wire fraud. Eagle faces a maximum penalty of 30 years in federal prison on each of the six counts, and a fine of up to $1 million. He will also be ordered to pay restitution to his victims.
According to the plea agreement, Eagle was president and director of Eagle Realty of Southwest Florida, Inc. In June 1990, Eagle created a Trust Agreement for approximately 101 acres of unimproved land in Cape Coral. A portion of this land bordered on Pine Island Road. Eagle was the trustee of this Pine Island 101 Land Trust and was also one of the beneficiaries. There was a total of 52 named combined interest holders or beneficiaries of the land trust. Eagle mortgaged the trust property without the knowledge of the other beneficiaries. He did so by submitting fraudulently altered trust agreements to multiple banks naming him, or an entity which he controlled, as the sole beneficiary.
Eagle also executed a number of loan documents in which he falsely claimed he was the sole beneficiary and that he had authorization to mortgage the property. In the first mortgage loan in 2002, Eagle received $2 million from Florida Community Bank. He paid off that loan in 2006 with a mortgage loan from First National Bank of Pennsylvania. The 2006 loan was for an amount exceeding $17 million. Eagle used most of the proceeds of the second loan for his own personal use, mainly to fund other projects.
Eagle defaulted on the First National Bank of Pennsylvania mortgage loan, causing the bank to initiate foreclosure proceedings in October 2009. The unpaid principal balance is $17.03 million. The beneficiaries to the Pine Island 101 Land Trust have not received compensation for their initial payments as interest holders, yearly mortgage, taxes, insurance, and administrative payments, nor for the increase in the value of the Trust property from the time the Trust was created in June 1990.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
Former Web Producer Indicted in California for Conspiring with “Anonymous” Members to Attack Internet News SiteRead the Press Release
A former web producer for a Tribune Company-owned television station in Sacramento, Calif., was charged today in an indictment for allegedly conspiring with members of the hacker group “Anonymous” to hack into and alter a Tribune Company website, the Justice Department announced.
Matthew Keys, 26, of Secaucus, N.J., was charged in the Eastern District of California with one count each of conspiracy to transmit information to damage a protected computer, transmitting information to damage a protected computer and attempted transmission of information to damage a protected computer.
Keys was employed by Sacramento-based television station KTXL FOX 40, as its web producer, but was terminated in late October 2010.
The three-count indictment alleges that in December 2010 Keys provided members of the hacker group Anonymous with log-in credentials for a computer server belonging to KTXL FOX 40’s corporate parent, the Tribune Company. According to the indictment, Keys identified himself on an Internet chat forum as a former Tribune Company employee and provided members of Anonymous with a login and password to the Tribune Company server. After providing log-in credentials, Keys allegedly encouraged the Anonymous members to disrupt the website. According to the indictment, at least one of the computer hackers used the credentials provided by Keys to log into the Tribune Company server, and ultimately that hacker made changes to the web version of a Los Angeles Times news feature.
The indictment further alleges that Keys had a conversation with the hacker who claimed credit for the defacement of the Los Angeles Times website. The hacker allegedly told Keys that Tribune Company system administrators had thwarted his efforts and locked him out. Keys allegedly attempted to regain access for that hacker, and when he learned that the hacker had made changes to a Los Angeles Times page, Keys responded, “nice.”
Each of the two substantive counts carry a maximum penalty of 10 years in prison, three years of supervised release and a fine of $250,000. The conspiracy count carries a maximum penalty of five years in prison, three years of supervised release and a fine of $250,000.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
This case was investigated by the Sacramento and Los Angeles Field Offices of the FBI. The case is being prosecuted by the Criminal Division’s Computer Crime and Intellectual Property Section and the U.S. Attorney’s Office for the Eastern District of California.Former Tulsa Public Schools Athletic Director Pleads Guilty to Theft of School District FundsRead the Press Release
Tulsa, Oklahoma – Today, STEPHANIE SPRING, 45, from Tulsa, Oklahoma, pled guilty to theft of funds from the Tulsa Public School district before United States District Judge John E. Dowdell at the Page Belcher Federal Courthouse in Tulsa, Oklahoma, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Spring is the former Athletic Director of the Tulsa Public Schools, a recipient of federal funds from the U.S. Department of Education. It is alleged that during 2011, while serving as Athletic Director, Spring rented certain school facilities and misappropriated rental proceeds by depositing those funds into her own personal account.
Today, Spring entered a guilty plea and agreed that she owes $92,218.72 in restitution to the Tulsa Public Schools.
At sentencing, Spring faces up to ten years in federal prison, a fine of up to $250,000 and mandatory restitution. A sentencing date will be set by the Court.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Vicki Zemp Behenna.
Former Thurman, Iowa Resident Pleads Guilty to Fraud ChargesRead the Press Release
COUNCIL BLUFFS, IA - On March 12, 2013, 54 year old Robert W. Duncan, formally a resident Thurman, Iowa, entered guilty pleas to defrauding the Social Security Administration, filing a false income tax return and making a false statement to a financial institution.
Duncan, the former owner and auctioneer for Bob Duncan and Associates, admitted during the plea proceeding that he had defrauded the Social Security Administration of between $200,000 and $400,000 by receiving benefits he was not entitled to between 1993 and 2011. Duncan also admitted that he had caused to be filed a false 1040 tax form for tax year 2008 by under-reporting his income, and that he had provided false financial documents to Treynor State Bank to obtain a $225,000 loan in 2005.
Duncan faces a potential sentence of up to thirty years in prison, $1,000,000 in fines, and five years of supervised release. Sentencing is currently set for June 11, 2013, in Council Bluffs, Iowa.
The investigation was conducted by the Iowa Division of Narcotics Enforcement, Southwest Iowa Narcotics Task Force, the Mills County, Iowa, Sheriff’s Office, the Internal Revenue Service-Criminal Investigation, the Social Security Administration-Office, of the Inspector General, the Drug Enforcement Administration, and the Federal Bureau of Investigation. The case is being prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.
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Former Rosedale Resident Convicted of Robbing a Business Resulting in the Death of the Business OwnerRead the Press Release
Baltimore, Maryland - After a five day bench trial, U.S. District Judge William D. Quarles, Jr., convicted Pedro Rodriguez Garcia, age 34, formerly of Rosedale, Maryland, late yesterday of conspiring to commit an armed commercial robbery on July 29, 2009, armed robbery and brandishing a gun during a crime of violence.
The verdict 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; Commissioner Anthony W. Batts of the Baltimore City Police Department; Chief James W. Johnson of the Baltimore County Police Department; Baltimore City State’s Attorney Gregg L. Bernstein; Baltimore County State’s Attorney Scott Shellenberger; Special Agent in Charge Niall Meehan of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service; and Maryland Attorney General Douglas F. Gansler.
“Superb law enforcement coordination brought the defendant to justice for the armed robbery that resulted in the tragic death of Constantine Frank,” said U.S. Attorney Rod J. Rosenstein.
“The worldwide presence and investigative capabilities of the Diplomatic Security Service enables us to work with our law enforcement partners domestically and around the world to bring criminals to justice,” said Niall Meehan, Special Agent in Charge of the Washington Field Office of the Diplomatic Security Service.
According to evidence presented at the trial, Garcia participated in a robbery planned by Nikolaos Mamalis. Mamalis recruited Garcia, Daniel Chase and others to rob Constantine Frank, the owner of Precision Vending located on S. Lakewood Avenue in Baltimore. Mamalis knew the owner socially and from prior business dealings, and he was familiar with the physical layout and security at Precision Vending from previous visits with Mr. Frank. On July 29, 2009, after Mamalis advised his co-conspirators that Mr. Frank was alone inside, Garcia and Chase entered the business disguised as package delivery men. Chase took out a gun from a false package they had brought inside, brandished the weapon and then gave it to Garcia who used the gun to hold Mr. Frank captive. The two robbers also used zip-ties and duct tape to restrain the victim while Chase searched the business for cash, stealing over $11,000. Knowing that Mr. Frank would recognize him, Mamalis waited outside the building and received periodic reports from Chase using prepaid wireless phones which Mamalis and a co-conspirator had previously purchased.
The robbers left Mr. Frank bound, knowing that he was sweating profusely and in obvious discomfort. Shortly after leaving, Chase called one of Mr. Frank’s other businesses and said: “Your boss is in his office, and he is not doing so good.” Mr. Frank had suffered a stroke by the time officers found him conscious, but still in physical restraints and unable to speak. Mr. Frank was listed in critical condition when he arrived at the hospital and died less than two weeks later on August 11, 2009. The autopsy concluded that the cause of death was an intra-cerebral hemorrhage associated with stress resulting from the robbery and ruled the death a homicide.
After Mr. Frank’s death, Garcia fled the country and was captured by agents from the U.S. Border Patrol two years later.
Garcia was convicted of conspiracy, commercial robbery, and a corresponding firearms charge, and faces a mandatory minimum sentence of 57 years in prison and a maximum of life in prison. Judge Quarles has scheduled sentencing for June 18, 2013 at 1:00 p.m.
Nikolaos Mamalis, age 56, of Edgewood, Maryland, was sentenced to 77 years in prison, for conspiracy, three counts of commercial robbery and three corresponding firearms charges in connection with the Precision Vending robbery and two home invasion robberies in Maryland. Mamalis was convicted by a federal jury on February 3, 2011. Daniel Chase, age 67, of Browns Mill, New Jersey; pleaded guilty to his participation in a series of robberies planned by Mamalis and was sentenced to 141 months in prison.
United States Attorney Rod J. Rosenstein thanked: the Federal Bureau of Investigation; Baltimore City Police Department; Baltimore County Police Department; New Jersey State Police; the Baltimore City State’s Attorney’s Office; Baltimore County State’s Attorney’s Office; and U.S. Department of State’s Diplomatic Security Service, for their work in this investigation and prosecution. Mr. Rosenstein commended Assistant United States Attorneys Debra L. Dwyer and Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, who are prosecuting the case.
Former IRS Worker, Two Others Convicted of Tax Refund SchemeRead the Press Release
PHILADELPHIA - Former Internal Revenue Service employee Patricia Fountain, 35, Larry Ishmael, 40, and Calvin Johnson, Jr., 35, all of Philadelphia, PA, were found guilty yesterday of committing a series of tax refund schemes that defrauded the U.S. Government. A federal jury found each of the three defendants guilty of multiple counts of both conspiracy and filing false claims/tax returns to the IRS. For abusing her public office, Fountain was also found guilty of extortion. Johnson, Jr. was also found guilty of filing false claims while he was on pretrial release. Collectively, the defendants’ schemes cost the IRS well over $1 million.
Each of the defendants solicited claimants whose personal information the defendants used to file false tax returns claiming the Telephone Excise Tax Refund (TETR) in 2007 and the First Time Homebuyer Credit in 2009. Fountain also claimed the TETR by filing false tax returns for herself and for Ishmael, and used one of the claimant’s information to file a false tax return in 2008. Johnson, Jr. also used claimants’ information to file false tax returns in 2012, while he was being supervised on pretrial release in this case.
For each of the schemes, which Fountain engineered using inside information from the IRS, the defendants charged claimants a cash fee. With respect to her TETR scheme, Fountain warned that she would “red flag” those claimants who did not pay her a $400 fee. She then filed amended returns for those whom she believed had not paid the fee, causing the IRS to demand payment from certain claimants who had previously received TETRs. Fountain and Ishmael pooled their cash fees for their mutual use, including an $11,299 down payment on a Mercedes Benz R350, which Fountain structured by paying $9,900 in cash and charging the rest to a credit card.
Sentencing hearings for the defendants are scheduled for Fountain and Ishmael for June 17, 2013. Johnson’s sentencing hearing is scheduled for June 18, 2013. Pending sentencing, Ishmael and Johnson are being detained in federal custody and Fountain is being supervised on home detention. Fountain faces an expected advisory sentencing guideline range of 188 to 235 months in prison; Ishmael faces an expected advisory sentencing guideline range of 78 to 97 months; Johnson, Jr., faces an expected advisory sentencing guideline range of 108 to 135 months in prison. The defendants could also be ordered to pay restitution to the IRS, and fines, in addition to the mandatory special assessments. Co-defendants Andre Bruce, Howard Chilsom, William Martin, and Calvin Johnson, Sr. previously pleaded guilty.
The case was investigated by the Treasury Inspector General for Tax Administration and IRS Criminal Investigation. It is being prosecuted by Assistant United States Attorney Joe Khan and Department of Justice, Tax Division Trial Attorney Tiwana L. Wright.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Former Cfo of Westport Hedge Fund Sentenced to 41 Months in Prison for Embezzling More Than $1 MillionRead the Press Release
March 14, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that DARRIN FOSTER, 46, formerly of the Bronx, N.Y., was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 41 months of imprisonment, followed by three years of supervised release, for embezzling more than $1 million from his Connecticut employer.
According to court documents and statements made in court, FOSTER worked as the Chief Financial Officer for a hedge fund based in Westport. As CFO, FOSTER had access to his employer’s bank accounts, was authorized to make business-related charges on the corporate American Express card and was entrusted to pay the American Express bill. From approximately September 2004 to July 2010, FOSTER made thousands of unauthorized charges for personal expenses on his employer’s American Express account. He then arranged for telephonic payments of his unauthorized charges to be made from the hedge fund’s bank accounts.
Through this scheme, FOSTER made a total of $1,093,856.20 in unauthorized personal charges.
FOSTER was arrested by the New York State Police in Yonkers on May 27, 2012. On October 16, 2012, he pleaded guilty to one count of wire fraud.
This matter was investigated by the United States Secret Service and was prosecuted by Assistant United States Attorney Susan Wines.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Federal Court Permanently Bars Michigan Woman from Preparing Tax Returns Claiming the Earned Income Tax CreditRead the Press Release
A federal court has permanently barred Crystal Ireland, of Detroit, who does business as Master Mind Preparation, from preparing federal tax returns that claim the earned income tax credit, the Justice Department announced today. The civil injunction order, to which Ireland consented, was signed by Judge Bernard Friedman of the U.S. District Court for the Eastern District of Michigan.
The complaint in the case alleged that Ireland failed to comply with due diligence requirements imposed by federal law on tax preparers who claim the earned income credit on customers’ returns. According to the complaint, Ireland fabricated businesses and reported fake business income on her customers’ tax returns in order to claim the maximum credit for them.
The complaint alleged that the Internal Revenue Service penalized Ireland in 2010 for failing to comply with federal law due diligence requirements, yet a 2011 follow-up investigation revealed ongoing failures and fraudulent claims. According to the complaint, Ireland prepared at least 2,300 returns from 2008 through 2011, with unusually high refund rates ranging from 97 to 99 percent for those years.
The permanent injunction order also bars Ireland from preparing forms Schedule C on which she knowingly fabricates income or expenses, preparing tax returns on which she knowingly claims a dependent that does not actually qualify as a dependent of the taxpayer, and preparing tax returns on which she fails to identify herself as the paid preparer or falsely identifies someone else as the paid preparer.
In the past decade the Justice Department’s Tax Division has obtained injunctions against hundreds of tax return preparers and tax-fraud promoters. Information about these cases is available on the Justice Department website.
Related Materials:
United States v. Crystal E. Ireland, etc.
Order of Permanent Injunction Against Crystal E. Ireland (PDF)Farmington Man Pleads Guilty to Methamphetamine Trafficking and Firearms ChargesRead the Press Release
Plea Agreement Requires Defendant to Serve 17 Year Prison SentenceALBUQUERQUE – Lindsey Joe Brown, II, 40, of Farmington, N.M., pled guilty this morning to methamphetamine trafficking and firearms charges under a plea agreement that requires him to serve a17 year prison sentence. The guilty plea was announced by U.S. Attorney Kenneth J. Gonzales, District Attorney Rick P. Tedrow for the 11 th Judicial District of the State of New Mexico in San Juan County, Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) in El Paso, Texas, and Lt. Neil Haws, Director of the Region II Narcotics Task Force.
Brown was indicted in March 2012 and charged with participation in a methamphetamine trafficking conspiracy, possession of methamphetamine with intent to distribute, and using a firearm in relation to a drug trafficking crime. According to the indictment, Brown committed these crimes in San Juan County, N.M., in Oct. 2011. Brown was arrested on April 5, 2012, and has been in federal custody since that time.
This morning, Brown pled guilty to possession of methamphetamine with intent to distribute and the firearms offense. In his plea agreement, Brown admitted that, on Oct. 26, 2011, he agreed to sell methamphetamine to a person who unbeknownst to him was working as an informant. Law enforcement officers conducted surveillance as Brown drove from Farmington to Cuba, N.M., where he purchased methamphetamine from his supplier. While Brown was traveling back to Farmington, the officers obtained a search warrant for Brown’s 2009 Ford Mustang. When the officers executed the search warrant, they found a box in the Mustang’s trunk that contained more than 200 grams of methamphetamine. In the center console of the Mustang, the officers found a fully loaded .9 mm semi-automatic pistol and other .9 mm ammunition. Brown was arrested on state charges, which were later dismissed after Brown was arrested on federal charges.
Under the terms of his plea agreement, Brown has agreed to forfeit the Mustang used to transport the methamphetamine and the firearm and ammunition found in the vehicle.
11th Judicial District Attorney Rick P. Tedrow said, “The assistance provided by the U.S. Attorney’s Office has provided San Juan County a great benefit in allowing our agencies to coordinate strengths and remove dangerous offenders from our communities. It is our hope to continue working together with prosecutors from our office, the prosecutors from the U.S. Attorney’s office, and all our law enforcement agencies and keep moving forward toward our common goal of safe communities in this State.”
“The message to drug traffickers is clear: Make no mistake. HSI is working aggressively with our state and local law enforcement partners to reduce drug trafficking activity in New Mexico,” said Dennis A. Ulrich, Special Agent in Charge of HSI El Paso. “And our alliance is strengthened by our commitment to public safety and border security.”
“I want to thank HSI and the U.S. Attorney's Office for their continued partnership with Region II and local agencies in San Juan County,” said Lt. Neil Haws, Director of Region II Narcotics Task Force. “Lindsey Brown was a major methamphetamine supplier to our area, and this prison sentence will ensure that he will not be selling drugs in our community for a long time. It is also a reminder to other local drug dealers that we have State and Federal partners in our efforts to investigate drug trafficking organizations and their members and that we will aggressively pursue and prosecute them for their crimes.
In announcing the guilty plea, U.S. Attorney Kenneth J. Gonzales commended the 11th Judicial District Attorney’s Office, HSI and the Region II Narcotics Task Force for their work in this cooperative investigation and prosecution. Assistant U.S. Attorney Lynn W.Y. Wang is prosecuting the case for the government and Assistant U.S. Attorney Cynthia L. Weisman is handling the forfeiture proceedings.
Eight Individuals Indicted for Lacey Act Violations and Other Crimes Relating to the Trafficking of Paddlefish “Caviar”Read the Press Release
Eight individuals face federal charges stemming from a joint U.S. Fish and Wildlife Service and Missouri Department of Conservation investigation of interstate and international trafficking in paddlefish “caviar,” the Department of Justice Environment and Natural Resources Division and the U.S. Attorney for the Western District of Missouri announced. Arkadiy Lvovskiy, Dmitri Elitchev, Artour Magdessian, Felix Baravik, Petr Babenko, Bogdan Nahapetyan, Fedor Pakhnyuk and Andrew Praskovsky have been charged in four, separate indictments in the Western District of Missouri for acts that occurred in 2011 and 2012.
The American paddlefish (Polydon spathula), also called the Mississippi paddlefish or the “spoonbill,” is a freshwater fish that is primarily found in the Mississippi River drainage system. Paddlefish eggs are marketed as caviar. Paddlefish were once common in waters throughout the Midwest. However, the global decline in other caviar sources, such as sturgeon, has led to an increased demand for paddlefish caviar. This increased demand has led to over-fishing of paddlefish, and consequent decline of the paddlefish population.
Missouri law prohibits the transportation of paddlefish eggs which have been removed or extracted from a paddlefish carcass. Missouri law also prohibits the sale or purchase, or offer of sale or purchase, of paddlefish eggs. There are also several restrictions on the purchase and possession of whole paddlefish in Missouri.
Among other things, the Lacey Act makes it unlawful for any person to import, export, transport, sell, receive, acquire or purchase fish that were taken, possessed, transported or sold in violation of any law or regulation of any state, or to attempt to do so. Such conduct constitutes a felony crime if the defendant knowingly engaged in conduct involving the purchase or sale, offer to purchase or sell or intent to purchase or sell, fish with a market value in excess of $350, knowing that the fish were taken, possessed, transported or sold in violation of, or in a manner unlawful under, a law or regulation of any state.
Arkadiy Lvovskiy, 51, of Aurora, Colo., Dmitri Elitchev, 46, of Centennial, Colo., Artour Magdessian, 46, of Lone Tree, Colo., and Felix Baravik, 48, of Aurora, Colo., were charged with conspiring with each other, and others, to violate the Lacey Act, and with trafficking in paddlefish and paddlefish eggs in violation of the Lacey Act. The indictment alleges that in the spring of 2011 and 2012, the defendants traveled to Warsaw, Mo., where they engaged in multiple, illegal purchases of paddlefish and processed the eggs from those paddlefish into caviar. After processing the paddlefish eggs into caviar, the defendants transported the caviar from Missouri to Colorado. The indictment further alleges that, during the interstate transportation, the defendants engaged in counter-surveillance efforts in order to avoid being detected.
Petr Babenko, 42, of Vineland, N.J., and Bogdan Nahapetyan, 33, of Lake Ozark, Mo., were charged with conspiring with each other and other individuals to violate the Lacey Act, and with trafficking in paddlefish and paddlefish eggs in violation of the Lacey Act. The indictment alleges that between March and April 2012, the defendants traveled to Warsaw where they engaged in multiple, illegal purchases of paddlefish and processed the eggs from those paddlefish into caviar. After processing the paddlefish eggs into caviar, they transported the caviar from Missouri to New Jersey.
Fedor Pakhnyuk, 39, of Hinsdale, Ill., is charged with two counts of trafficking in paddlefish and paddlefish eggs in violation of the Lacey Act. According to the indictment, in the spring of 2011 and 2012 Pakhnyuk traveled from Illinois to Missouri for the purpose of obtaining paddlefish eggs. The indictment alleges that Pakhnyuk procured paddlefish eggs by purchasing them, and by performing processing services for other persons in exchange for a share of the processed eggs. After processing the paddlefish eggs into caviar, Pakhnyuk transported the caviar from Missouri to Illinois. The indictment alleges that Pakhnyuk also attempted to form an enterprise with other individuals that would market processed paddlefish caviar at markets in Chicago, Illinois.
Andrew Praskovsky, 40, of Erie, Colo., is charged with two counts of trafficking in paddlefish and paddlefish eggs in violation of the Lacey Act. According to the indictment, in March and April 2012, Praskovsky twice traveled to Warsaw for the purpose of purchasing paddlefish. After processing the paddlefish eggs into caviar, Pakhnyuk transported the caviar from Missouri to Kansas. The indictment alleges that, in April 2012, Praskovsky attempted to export some of the paddlefish eggs in checked luggage on an international flight departing from Dulles International Airport in Washington, D.C. The paddlefish eggs were seized at Dulles, as paddlefish eggs may only be exported if they are accompanied by a valid permit issued by the U.S. Fish & Wildlife Service under the Convention for International Trade in Endangered Species (CITES).
If convicted, the individual defendants face a maximum penalty of five years in prison, and a $250,000 fine per count, as well as forfeiture of any vehicles that were used during the commission of the crimes.
The case was investigated by the U.S. Fish and Wildlife Service and the Missouri Department of Conservation, with assistance by the Oklahoma Department of Wildlife Conservation. The case is being prosecuted by Trial Attorneys James B. Nelson and Adam C. Cullman of the Department of Justice’s Environmental Crimes Section and Supervisory Assistant U.S. Attorney Lawrence E. Miller of the U.S. Attorney’s Office for the Western District of Missouri.
An indictment is a formal accusation and is not proof of guilt. Defendants are presumed innocent until and unless they are found guilty.
Eight Individuals Indicted for Lacey Act Violations and Other Crimes Relating to the Trafficking of Paddlefish "Caviar"Read the Press Release
WASHINGTON –Eight individuals face federal charges stemming from a joint U.S. Fish and Wildlife Service and Missouri Department of Conservation investigation of interstate and international trafficking in paddlefish “caviar,” the Department of Justice Environment and Natural Resources Division and the U.S. Attorney for the Western District of Missouri announced. Arkadiy Lvovskiy, Dmitri Elitchev, Artour Magdessian, Felix Baravik, Petr Babenko , Bogdan Nahapetyan, Fedor Pakhnyuk, and Andrew Praskovsky have been charged in four, separate indictments in the Western District of Missouri for acts that occurred in 2011 and 2012.
The American paddlefish (Polydon spathula), also called the Mississippi paddlefish or the “spoonbill,” is a freshwater fish that is primarily found in the Mississippi River drainage system. Paddlefish eggs are marketed as caviar. Paddlefish were once common in waters throughout the Midwest. However, the global decline in other caviar sources, such as sturgeon, has led to an increased demand for paddlefish caviar. This increased demand has led to over-fishing of paddlefish, and consequent decline of the paddlefish population.
Missouri law prohibits the transportation of paddlefish eggs which have been removed or extracted from a paddlefish carcass. Missouri law also prohibits the sale or purchase, or offer of sale or purchase, of paddlefish eggs. There are also several restrictions on the purchase and possession of whole paddlefish in Missouri.
Among other things, the Lacey Act makes it unlawful for any person to import, export, transport, sell, receive, acquire or purchase fish that were taken, possessed, transported or sold in violation of any law or regulation of any State, or to attempt to do so. Such conduct constitutes a felony crime if the defendant knowingly engaged in conduct involving the purchase or sale, offer to purchase or sell, or intent to purchase or sell, fish with a market value in excess of $350, knowing that the fish were taken, possessed, transported or sold in violation of, or in a manner unlawful under, a law or regulation of any State.
Arkadiy Lvovskiy, 51, of Aurora, Colorado, Dmitri Elitchev, 46, of Centennial, Colorado, Artour Magdessian, 46, of Lone Tree, Colorado, and Felix Baravik, 48, of Aurora, Colorado, were charged with conspiring with each other, and others, to violate the Lacey Act, and with trafficking in paddlefish and paddlefish eggs in violation of the Lacey Act. The indictment alleges that in the spring of 2011 and 2012, the defendants traveled to Warsaw, Missouri, where they engaged in multiple, illegal purchases of paddlefish and processed the eggs from those paddlefish into caviar. After processing the paddlefish eggs into caviar, the defendants transported the caviar from Missouri to Colorado. The indictment further alleges that, during the interstate transportation, the defendants engaged in counter-surveillance efforts in order to avoid being detected.
Petr Babenko, 42, of Vineland, New Jersey, and Bogdan Nahapetyan, 33, of Lake Ozark, Missouri, were charged with conspiring with each other and other individuals to violate the Lacey Act, and with trafficking in paddlefish and paddlefish eggs in violation of the Lacey Act. The indictment alleges that between March and April 2012, the defendants traveled to Warsaw, Missouri, where they engaged in multiple, illegal purchases of paddlefish and processed the eggs from those paddlefish into caviar. After processing the paddlefish eggs into caviar, they transported the caviar from Missouri to New Jersey.
Fedor Pakhnyuk, 39, of Hinsdale, Illinois, is charged with two counts of trafficking in paddlefish and paddlefish eggs in violation of the Lacey Act. According to the indictment, in the spring of 2011 and 2012 Pakhnyuk traveled from Illinois to Missouri for the purpose of obtaining paddlefish eggs. The indictment alleges that Pakhnyuk procured paddlefish eggs by purchasing them, and by performing processing services for other persons in exchange for a share of the processed eggs. After processing the paddlefish eggs into caviar, Pakhnyuk transported the caviar from Missouri to Illinois. The indictment alleges that Pakhnyuk also attempted to form an enterprise with other individuals that would market processed paddlefish caviar at markets in Chicago, Illinois.
Andrew Praskovsky, 40, of Erie, Colorado, is charged with two counts of trafficking in paddlefish and paddlefish eggs in violation of the Lacey Act. According to the indictment, in March and April 2012, Praskovsky twice traveled to Warsaw, Missouri, for the purpose of purchasing paddlefish. After processing the paddlefish eggs into caviar, Pakhnyuk transported the caviar from Missouri to Kansas. The indictment alleges that, in April 2012, Praskovsky attempted to export some of the paddlefish eggs in checked luggage on an international flight departing from Dulles International Airport in Washington, DC. The paddlefish eggs were seized at Dulles, as paddlefish eggs may only be exported if they are accompanied by a valid permit issued by the U.S. Fish & Wildlife Service under the Convention for International Trade in Endangered Species (CITES).
If convicted, the individual defendants face a maximum penalty of five years in prison, and a $250,000 fine per count, as well as forfeiture of any vehicles that were used during the commission of the crimes.
The case was investigated by the U.S. Fish and Wildlife Service and the Missouri Department of Conservation, with assistance by the Oklahoma Department of Wildlife Conservation. The case is being prosecuted by Trial Attorneys James B. Nelson and Adam C. Cullman of the Department of Justice’s Environmental Crimes Section and Supervisory Assistant U.S. Attorney Lawrence E. Miller of the U.S. Attorney’s Office for the Western District of Missouri.
An indictment is a formal accusation and is not proof of guilt. Defendants are presumed innocent until and unless they are found guilty.
Lvovskiy, et al Indictment
Babenko, et al Indictment
Pakhnyuk Indictment
Praskovsky Indictment
Drug Dealer Sentenced to 30 Years in Prison After Four Years on the RunRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Birmingham man to 30 years in prison on cocaine distribution charges from 2008, charges for which he was convicted in October after evading the law for four years, announced U.S. Attorney Joyce White Vance and Drug Enforcement Administration Assistant Special Agent in Charge Clay A. Morris.
U.S. District Judge L. Scott Coogler sentenced LAMAR GIBSON, 41, on one count of conspiracy to distribute crack cocaine, one count of distributing crack cocaine and one count of attempting to distribute the drug. Gibson fled after he was indicted in August 2008 and evaded capture until August 2012.
Gibson's co-defendant in the case, Shawn Greer, 44, of Birmingham, pleaded guilty to the charges in November 2008 and was sentenced after Gibson's trial to 15 years in prison.
The two men were convicted of conspiracy and distribution in connection to their sale of about 70 grams of crack cocaine for $1,750 on Feb. 22, 2008. They were convicted of attempting to distribute another 2 ½ ounces of crack cocaine on May 22, 2008.
The DEA investigated the case, and Assistant U.S. Attorney L. James Weil Jr. prosecuted the case.
Driver of “chubby Bandit” Bank Robber ConvictedRead the Press Release
United States Attorney Laura E. Duffy announced that Vahid Edrisi was found guilty by a federal jury earlier today in San Diego of six counts of bank robbery and one count of robbing a pharmacy. The verdicts follow a two-day trial before United States District Judge Larry A. Burns.
The evidence presented at trial showed Edrisi accessing cellular towers in the vicinity of six of the seven robberies committed by Aaron Hyman, dubbed the “Chubby Bandit,” in October 2012. Edrisi himself was captured by video surveillance just prior to one of the robberies, and Edrisi’s black 2011 Chevrolet Camaro Convertible was captured on video surveillance at three of the seven robberies. Hyman entered guilty pleas to seven counts of robbery on January 24, 2013.
The evidence further showed that Edrisi twice fled law enforcement at high rates of speed to avoid capture. Edrisi abandoned the car following the second chase. Inside the car, officers found a hat worn during one of the seven “Chubby Bandit” robberies. Edrisi was arrested when he went to the tow yard to attempt to retrieve his car.
The defendants were convicted of robbing:
$369.00
2 Bottles of Oxycontin
$2,307.00
Attempted
$309.00
$1,590.00
$830.00
U.S. Bank, 12265 Scripps Poway Parkway, Poway, CA
CVS Pharmacy, 191 Woodland Parkway, San Marcos, CA
Chase Bank, 7176 Avenida Encinitas, Carlsbad, CA
Chase Bank, 607 Lomas Santa Fe Dr., Solana Beach, CA
Wells Fargo, 276 N. El Camino Real, Encinitas, CA
U.S. Bank, 770 Carlsbad Village Dr., Carlsbad, CA
Wells Fargo, 11986 Bernardo Plaza Dr., San Diego, CA
Judge Burns set a sentencing hearing for Edrisi on June 10, 2012 at 9:30 a.m. Hyman is scheduled
DEFENDANTS Case Number: 12cr5098-LAB Aaron Alan Hyman
for sentencing on April 8, 2012 at 9:30 a.m.
Vahid Edrisi SUMMARY OF CHARGESTitle 18, United States Code, Section 2113(a) Bank Robbery
INVESTIGATING AGENCIES
Title 18, United States Code, Section 1951(a) – Obstruction of Interstate Commerce by Force (Hobbs Act)
Maximum Penalties: 20 years for each countFederal Bureau of Investigation
Carlsbad Police Department
San Diego County Sheriff’s Department
San Diego Police DepartmentDavid Joseph Sanders 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 March 13, 2013, before Senior U.S. District Judge Jack D. Shanstrom, DAVID JOSEPH SANDERS, a 49-year-old resident of Billings, appeared for sentencing. SANDERS was sentenced to a term of:
Prison: 135 months
Special Assessment: $200
Supervised Release: 3 years
SANDERS was sentenced in connection with his guilty plea to distribution of oxycodone.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
From February 2012 until May 14, 2012, SANDERS sold oxycodone and dilaudid (hydromorphone) to undercover law enforcement officers in Billings.
SANDERS received prescription pills from other people in the Billings area and then sold them to undercover officers. SANDERS sold oxycodone and dilaudid on February 24, March 28, and April 16, 2012.
On May 14, 2012, SANDERS was arrested in a buy/bust operation.
In total, officers purchased 167 dilaudid and 100 oxycodone pills from SANDERS. On May 14, 2012, the officers recovered 69 dilaudid and 40 oxycodone pills.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that SANDERS will likely serve all of the time imposed by the court. In the federal system, SANDERS does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Drug Enforcement Administration.