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25 April 2013
Buncombe Co. Man Sentenced to 36 Years in Prison on Child Pornography ChargesRead the Press Release
ASHEVILLE, N.C. – Lawrence Salvatore Hutson, 41, of Cantler, N.C. was sentenced on Wednesday, April 24, 2013, by U.S. District Judge Martin Reidinger to serve 432 months in federal prison for transporting child pornography, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Hutson was also placed on a lifetime of supervised release and was ordered to register as a sex offender.
Joining U.S. Attorney Tompkins in making today’s announcement are John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Sheriff Van Duncan, of the Buncombe County Sheriff’s Office.
In January 2012, Hutson pleaded guilty to one count of transportation of visual depictions of minors engaging in sexually explicit conduct. According to filed court documents and court proceedings, the conduct took place in August 2010. During the investigation, authorities seized a USB thumb drive, which belonged to Hutson, that contained over 4,000 images of child pornography, including many videos. Court records indicate that Hutson’s child pornography collection contained images of prepubescent children, including infants and toddlers. According to court records and yesterday’s sentencing hearing, Hutson also held two separate previous convictions in Pennsylvania for sexual contact offenses upon minors. Hutson’s sentence was enhanced because of the prior state convictions.
Hutson has been in local federal custody in the Western District of North Carolina since September 2011. Upon designation of a federal facility, he will be transferred into custody of the Federal Bureau of Prisons. All federal sentences are served without the possibility of parole.
The investigation was handled by the Buncombe County Sheriff’s Office assisted by the FBI and the Wheaton Police Department in Illinois. The case was prosecuted by Assistant United States Attorneys David Thorneloe and Don Gast of the U.S. Attorney’s Office in Asheville.
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 U.S. 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.
Birmingham Man Indicted for Multi-Million Dollar Tax SchemeRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Birmingham man in connection with a scheme to collect millions of dollars from the Internal Revenue Service on false tax returns, announced U.S. Attorney Joyce White Vance and IRS Criminal Investigation Division Special Agent in Charge Veronica Hyman-Pillot.
The indictment filed in U.S. District Court charges DOUGLAS ERVIN DENT, 66, with filing 20 false income tax returns in his own name and on behalf of others between April 2008 and October 2009. Dent knew that he and the other taxpayers were not entitled to the $6.2 million in refunds he claimed, according to the indictment. Each false tax return contained a claim that money had been earned by the taxpayer and withheld by various financial institutions on behalf of the taxpayer during the tax year and that the taxpayer was entitled to refund of those withholdings from the IRS when, in truth, no such earnings and withholdings had occurred, the indictment states.
Among the 20 false returns, Dent filed four in his name and one in the name of his deceased mother. The requested refunds on these five returns totaled more than $2.6 million, according to the indictment.
“The false and outrageous tax refunds cited in this case are both a crime and an affront to the millions of hard-working Americans who pay their justly owed taxes each year,” Vance said. “Criminals who scheme to avoid paying taxes or to steal money from the U.S. Treasury will be prosecuted,” she said.
"Return preparers who concoct schemes to steal public money face federal prosecution and time in prison,” Hyman-Pillot said. “Individuals cannot fraudulently enrich their bank accounts at the expense of the United States Treasury and other taxpayers."
If convicted, Dent could face a maximum sentence of five years in prison and a $250,000 fine on each of the 20 counts of making false claims against the government.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent and it will be the government’s responsibility to prove the defendant’s guilt beyond a reasonable doubt at trial.
Beaver Falls Man Sentenced to Prison for Violating Federal Narcotics LawsRead the Press Release
PITTSBURGH, Pa. - A resident of Beaver Falls, Pa., has been sentenced in federal court to 70 months imprisonment followed by five years supervised release on his conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Senior United States District Judge Alan N. Bloch imposed the sentence on Carlos Cleckley, 36.
According to information presented to the court, from on or about Dec. 4, 2009, and continuing until Sept. 29, 2011, in the Western District of Pennsylvania and elsewhere, Cleckley conspired with others to distribute and possess with intent to distribute five kilograms or more of cocaine. Additionally, on or about July 29, 2010, Cleckley distributed and possessed with intent to distribute 28 grams or more of cocaine base, in the form commonly known as crack.
Assistant United States Attorneys Katherine A. King and Troy Rivetti prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) comprised of members drawn from the Drug Enforcement Administration, the Pennsylvania State Police, the Internal Revenue Service - Criminal Investigation Division, the Pennsylvania Office of Attorney General, and the Beaver Falls Police Department for the investigation leading to the successful prosecution of Cleckley.
Anchorage Felon pleads guilty to gun chargeRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced that an Anchorage resident pled guilty yesterday in federal court to an indictment charging one count of felon in possession of firearms.
Alondo Mark Modeste, 29, entered his guilty plea before U.S. District Court Judge Timothy M. Burgess.
In connection with the guilty plea, Special Assistant U.S. Attorney Erin White Bradley, advised the court that Modeste possessed firearms in April 2012, and while fleeing from law enforcement, Modeste jumped out of a hotel window at the Merrill Field Inn. As he went out the window, Modeste threw a Smith & Wesson .357 caliber revolver he possessed into a snow bank. Law enforcement also found a Taurus 45 caliber revolver underneath the driver’s seat of a Buick Sedan that Modeste had been driving prior to entering the room at the Merrill Field Inn. Modeste has a 2005 felony conviction for manslaughter arising from a case in the Superior Court for the State of Alaska, Third Judicial District. Modeste also has other criminal convictions on his record involving illegal controlled substances, guns and violence.
Judge Burgess scheduled a sentencing hearing for Modeste on July 22, 2013. The law provides for a maximum sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history of the defendant.
Ms. Loeffler commends the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Anchorage Police Department for the investigation of this case. SAUSA Bradley is a prosecutor in the U.S. Attorney’s Office funded by the Municipality of Anchorage for the purpose of prosecuting gang-related and violent crime cases.
24 April 2013
United States Attorney Co-Sponsors State and Local Anti-Terrorism Training (SLATT) on Guam and the NMI (Amended)Read the Press Release
Alicia A. G. Limtiaco, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced today that after a year of planning, the State and Local AntiTerrorism Training (SLATT) Program has finally come to the Marianas. With the assistance of the U.S. Attorney's Office for the Districts of Guam and the Northern Mariana Islands, the Guam Homeland Security/Office of Civil Defense, the Commonwealth of the Northern Mariana Islands Homeland Security and Emergency Management, and the U.S. Department of Justice's Bureau of Justice Assistance (BJA) Program, two instructors from the Institute for Intergovernmental Research (IIR) were on Guam April23 to 24, 2013, and will be in the NMI on April25 to 26,2013, to conduct the SLATT workshops to law enforcement, hotel and private security, military anti-terrorism personnel and other community leaders. Over 160 individuals attended the training in Guam and about 150 have registered to attend in Saipan.
U.S. Attorney General Eric Holder presented a special message addressing the SLATT participants and thanking them for their efforts to safeguard our communities in Guam and the NMI, and our nation.
"April is National Crime Victims' Rights Week. We observe a moment of silence for the victims of the Boston Marathon bombing and for all victims of terrorism, and their families; and for our Fallen Soldiers who through their commitment and sacrifice continue to protect the freedoms exercised by all Americans," stated U.S. Attorney Limtiaco.
U.S. Attorney Limtiaco further stated, "As part of our Secure Communities partnership with the U.S. Department of Homeland Security, the U.S. Attorney's Office has been collaborating with the U.S. Department of Justice Bureau of Justice Assistance Program and Institute for Intergovernmental Research, Guam Homeland Security/Office of Civil Defense, and Commonwealth ofthe Northern Mariana Islands (CNMI) Homeland Security and Emergency Management, to bring the State and Local Anti-Terrorism Training (SLATT) program to Guam and the CNMI. At this training, community partners have the opportunity to discuss domestic terrorism, international terrorism, indicators of terrorism, and the Suspicious Activity Community Program, which promotes law enforcement safety and de-confliction, and provides assistance to our federal, military and local law enforcement partners and the Marianas Regional
Fusion Center -- recently designated as the 781 h fusion center in the nation, in preventing, reducing and combating some of the most concerning threats to our national security.""Since 9/11, there have been extraordinary and unprecedented efforts taken to keep America safe - including those by our own sons and daughters of the Pacific who serve in the military, as law enforcement, in the intelligence community, and as first responders. We also know that there is more work that must be done. Meeting these public safety and national security challenges of the 21st Century will require us to identify new enforcement strategies, to forge new partnerships, and to provide more support for our law enforcement communities. Our people in Guam and the Northern Mariana Islands, and our Pacific island neighbors are resilient. Terrorists aim to instill fear in our people, and to overturn our way of life. Just as earlier generations of Americans overcame great tests, so must we draw on the resilience of the American people to overcome the challenges of our time. Our communities are capable of withstanding whatever dangers may come. Today, threats from terrorists and extremists continue against our nation and the Asia-Pacific region. Our work against terrorism cannot be done without the continued involvement, leadership, vigilance and partnership of our community stakeholders," said U.S. Attorney Limtiaco.
U.S. Attorney Limtiaco gave special thanks to the Guam Homeland Security/Office of Civil Defense and the CNMI Homeland Security and Emergency Management for their assistance in planning the training and for securing the venues for this important training.
Union Leader, Wayne Boudoin, Charged with Stealing Union FundsRead the Press Release
WAYNE BOUDOIN, age 60, a resident of Edgard, Louisiana, was charged yesterday in a one-count Bill of Information for embezzling assets of a local labor union, announced U. S. Attorney Dana J. Boente.
According to court records, BOUDOIN was the president of the Local 709 Security, Police, and Fire Professionals of America International Union from September 2003 through January 2011. The Local 709 maintained a checking account with a local bank to hold the membership dues that were collected from the union members. As the union’s president, BOUDOIN was able to access the funds in the union account through checks and a debit card. According to the bill of information, BOUDOIN embezzled $16,367.96 from the union account by using the debit card to make unauthorized purchases at various retail establishments and to withdraw cash from ATM machines.
If convicted, BOUDOIN faces a maximum term of five years imprisonment, a fine of $10,000 and three years of supervised release following any term of imprisonment.
U. S. Attorney Boente reiterated that the 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 Labor. The case is being prosecuted by Assistant U. S. Attorney Spiro G. Latsis.
(Download Bill of Information )
U.S. Attorneys' Offices in Iowa Observe National Crime Victims' Rights WeekRead the Press Release
U.S. Attorneys for the Northern and Southern Districts of Iowa, Sean R. Berry and Nicholas A. Klinefeldt, announced that two individuals will be honored for outstanding service to crime victims in an awards ceremony. The awards will be presented during a National Crime Victims’ Rights Week Celebration which will be held on April 25, 2012 at the Jessie Parker Building, 510 E. 12th Street, Des Moines, Iowa, in the Iowa Department of Corrections Office’s Grant Room from 10:00 a.m. to 12:00 p.m. This year’s observance of National Crime Victims’ Rights Week runs from April 21 to April 27. This year’s theme, “New Challenges. New Solutions,” celebrates the spirit that will advance the progress these heroes achieved. It also captures the spirit and highlights the need for us to assist and serve each and every victim in need of hope and help.
The Continuous Service Award
United States Postal Inspector Tina Nobis will receive the Continuous Service Award, which recognizes a nominee who has provided help to victims for many years. Inspector Nobis has long been noted for her compassionate effort on behalf of hundreds of fraud victims.
The Single Act Award
Iowa Division of Criminal Investigation (DCI) Special Agent Mike Roehrkasse will receive the Single Act Award, which recognizes a nominee who has provided exceptional assistance to crime victims in a specific case. Special Agent Roehrkasse was the lead agent in a case involving two missing Iowa children. Special Agent Roehrkasse, while balancing the investigation of the missing children, provided constant support to the immediate families of the children. He frequently met with the families, at times on a daily basis, to notify them of the progress of the investigation. Special Agent Roehrkasse demonstrated unwavering compassion as he supported the families throughout the investigation.
The Law Enforcement Victim Service Awards are the highest federal honors in the State of Iowa for victim services provided by law enforcement. The awards are presented to law enforcement officers who have gone above and beyond the call of duty through their dedication and efforts to show compassion and caring for victims of crime. The awards are determined by the Federal Law Enforcement Victim Committee of the U.S. Attorneys’ Offices for the Northern and Southern Districts of Iowa. The committee consists of representatives from federal law enforcement agencies and federal and state victim service agencies.
“The U.S. Attorney’s Office is deeply committed to assisting victims of federal crimes, ensuring they are afforded their rights under the Crime Victims’ Rights Act, protecting them from further harm, and helping them reshape their futures,” said U.S. Attorney Nicholas Klinefeldt.
The Crime Victims’ Rights Act (CVRA), enacted in 2004, grants victims in federal criminal proceedings certain enforceable rights, including the right to be reasonably heard at public court proceedings and to receive full and timely restitution as provided by law. The U.S. Attorneys’ Offices in the Northern and Southern District of Iowa have a dedicated Victim Witness staff that serve federal crime victims across state’s 99 counties. The Victim Witness staff sends notices to victims of significant case events through the Department of Justice’s (DOJ) Victim Notification System (VNS). Such notices enable victims to participate in court proceedings and make their voices heard. According to Department of Justice Statistics, in Fiscal Year (FY) 2012, the U.S. Attorneys’ offices provided notice of over 12.2 million case events, including notices regarding criminal charges filed, plea hearings, bond hearings and sentencing hearings.
Notification of significant case events leads to increased victim participation in court proceedings. Court accompaniment helps ensure that victim participation in court proceedings is meaningful as Victim-Witness personnel can answer questions and explain the federal judicial process.
In addition to notification and court accompaniment, the U.S. Attorneys’ Offices Victim Witness staff provides essential services to victims, such as making referrals for counseling, securing temporary housing, assisting with access to victim compensation funds, and accompanying victims to court to provide support and guidance during the proceedings. These services provide tools victims need to reshape their futures.
U.S. Attorney Sean Berry said, “This week is a time to raise awareness about the rights and needs of crime victims, the challenges victims face in the recovery process, and the positive impact of those who provide services and support to victims.”
Further information about National Crime Victims’ Rights Week is available at http://ovc.ncjrs.gov/ncvrw/. Media wishing to attend the award presentation should contact Shari Konarske, at 319-361-0908 to arrange access to the event.
Two St. Paul Men Indicted for Possessing with Intent to Distribute MethamphetamineRead the Press Release
MINNEAPOLIS—Recently in federal court, two St. Paul men were indicted for possessing with intent to distribute more than 500 grams of methamphetamine. On April 22, 2013, Antonio Ceron-Santos, age 40, and Avimael Armenta-Hernandez, age 27, were charged with one count of possession with intent to distribute methamphetamine.
The indictment alleges that on March 28, 2013, the defendants possessed the methamphetamine. According to a law enforcement affidavit filed in the case, the defendants were arrested that day, following an arranged controlled purchase of approximately one pound of methamphetamine at a parking lot in Maplewood. During the execution of a state search warrant at the defendants’ residence, police allegedly seized an additional five pounds of methamphetamine as well as drug ledgers and a scale typically used to weigh illegal narcotics.
If convicted, the defendants face a potential maximum penalty of life in federal prison. Because the federal criminal justice system does not have parole, offenders serve virtually their entire prison sentences behind bars. Any sentences imposed in this case would be determined by a federal district court judge.This case is the result of an investigation by the United States Drug Enforcement Administration, the Minnesota Bureau of Criminal Apprehension, the St. Paul Police Department, the Minneapolis-St. Paul Airport Police Department, the Minnesota State Patrol, and the county sheriff’s offices for Dakota, Ramsey, Washington and Wright counties. It is being prosecuted by Assistant U.S. Attorney Julie E. Allyn.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Two Convicted of Counterfeiting Thousands of Luxury GoodsRead the Press Release
HOUSTON – Two men from China, found with more than 14,000 fake luxury items, have been convicted of counterfeiting, United States Attorney Kenneth Magidson announced today. Yintang Cao, 48, and Hong Zhang, 46, entered a guilty plea to the charge just moments ago before U.S. District Judge Lee Rosenthal.
The charges arose after Cao and Zhang were discovered with more than 14,000 counterfeit items bearing the names of Coach, Dolce & Gabbana, Louis Vuitton, Prada and Versace, manufactures of luxury fashion goods.
Cao and Zhang were charged with separate, but related, criminal informations on March 15, 2013. Today, they admitted they knowingly used counterfeit marks on and in connection with such goods, identical to and substantially indistinguishable from genuine marks, the use of which was likely to cause confusion, mistake and to deceive.
Judge Rosenthal has set sentencing for Aug. 9, 2013, at which time both men face up to 10 years in federal prison as well as a $2 million fine. They were permitted to remain on bond pending their sentencing hearing.The felony Information and subsequent convictions came after an intensive investigation conducted by Homeland Security Investigations.
Three from Oregon Indicted for Conspiracy and Possession with Intent to Distribute MarijuanaRead the Press Release
United States Attorney Brendan V. Johnson announced that two men and one woman from Eugene, Oregon have been indicted by a federal grand jury for two counts of Conspiracy and Possession with Intent to Distribute Marijuana.
Justin Jones, age 23; Glenn Shea, age 20; and Jesse Parker, age 23, were indicted by a federal grand jury on March 13, 2013. They appeared before U.S. Magistrate Judge Mark A. Moreno on April 22, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 5 years of custody, a $250,000 fine, or both; 2 years of supervised release; and a $100 special assessment. Restitution may also be ordered.
The charges are merely an accusation and Jones, Shea, and Parker are presumed innocent unless and until they are proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. The case is being prosecuted by Assistant U.S. Attorney Jay Miller.
Jones, Shea, and Parker were released on bond pending trial. A trial date has not been set.
Three from Oregon Indicted for Conspiracy and Possession with Intent to Distribute MarijuanaRead the Press Release
United States Attorney Brendan V. Johnson announced that two men and one woman from Eugene, Oregon have been indicted by a federal grand jury for two counts of Conspiracy and Possession with Intent to Distribute Marijuana.
Justin Jones, age 23; Glenn Shea, age 20; and Jesse Parker, age 23, were indicted by a federal grand jury on March 13, 2013. They appeared before U.S. Magistrate Judge Mark A. Moreno on April 22, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 5 years of custody, a $250,000 fine, or both; 2 years of supervised release; and a $100 special assessment. Restitution may also be ordered.
The charges are merely an accusation and Jones, Shea, and Parker are presumed innocent unless and until they are proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. The case is being prosecuted by Assistant U.S. Attorney Jay Miller.
Jones, Shea, and Parker were released on bond pending trial. A trial date has not been set.
Three Area Men Indicted on Federal Weapons and Drug Charges -- Including the Assault of A Federal OfficerRead the Press Release
St. Louis, MO - Three St. Louis area men were indicted on multiple federal gun and drug charges involving the April 18, 2013, assault of a federal officer.
FREDERICK CRAYTON, JAMES EDWARD JONES and DWAYNE CRAYTON, all of St. Louis City, were indicted by a federal grand jury late this afternoon.
If convicted, these charges carry a penalty range of 5 to 25 years in prison and/or fines up to $1,000,000. 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 Bureau of Alcohol, Tobacco and Firearms. Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney’s Office.Roy Alexander Briggs Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on April 23, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, ROY ALEXANDER BRIGGS, a 35-year-old resident of Helena, pled guilty to possession of child pornography. Sentencing has been set for July 30, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Zeno B. Baucus, the government stated it would have proved at trial the following:
In July 2012, the United States Marshal Service (USMS) received information that BRIGGS, who had previously been convicted in 2005 for possession of child pornography in the Western District of Washington, had absconded and was currently residing in Helena.
On July 17, 2012, the USMS arrested BRIGGS for violating the terms of his supervision which included having direct contact with a computer device, possession of visual images of minors engaged in sexually explicit conduct, and changing his place of residence and employment without notifying his probation officer. Following his arrest, BRIGGS admitted that a computer found at the residence was his and that it contained visual depictions of children engaged in sexually explicit activity.
On July 18, 2012, members of the Internet Crimes Against Children Task Force (ICAC) were alerted that BRIGGS' computer may contain visual depictions of children engaged in sexually explicit activity.
The computer was forensically analyzed and found to contain multiple image files which depicted children engaged in sexually explicit conduct.
BRIGGS faces possible penalties of 20 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was a cooperative effort between the United States Marshals Service and the Montana Internet Crimes Against Children (ICAC) Task Force.
Roger Tristan Johnson Sentenced to 235 Months in Prison for Participating in Conspiracy to Distribute OxycodoneRead the Press Release
GREENEVILLE, Tenn.- On Apr. 23, 2013, Roger Tristan Johnson, 34, of Johnson City, Tenn., was sentenced to serve 235 months in prison by the Honorable J. Ronnie Greer, U.S. District Judge.
Johnson pleaded guilty to an August 2010 federal indictment charging him with conspiracy to distribute and possess with the intent to distribute a quantity of oxycodone pills. Also charged in the conspiracy were Diane Elizabeth Campbell, 27 of Elizabethton, Tenn.; Tommy Thomas Nicholas, 45 of Gray, Tenn.; Joshua Paul Arnett, 26 of Gray, Tenn.; and Austin Tanner Wood, 20 of Sullivan County, Tenn. Arnett was charged with distribution of a quantity of oxycodone pills. Campbell and Nicholas were charged with interstate travel with intent to promote, manage, establish, carry on and facilitate the promotion, management, establishment, or carrying on, of a business enterprise involving narcotics or controlled substances. All have been convicted and are awaiting sentencing.
Johnson admitted that from January 2010 to August 2012, he knowingly, intentionally, and without authority, conspired with at least one other person to distribute and possess with the intent to distribute oxycodone pills, a Schedule II controlled substance in the Eastern District of Tennessee and elsewhere. An organization headed by Johnson employed a number of couriers to transport oxycodone pills from a source in Miami, Fla., to the Eastern District of Tennessee. At the height of this operation, Johnson’s couriers were making multiple trips a week to Florida, purchasing several thousand pills on each trip. The pills were then delivered to Johnson who further distributed the pills to street level dealers. At the time of his arrest Johnson, who had previously been convicted of a felony, was in possession of a loaded .45 caliber handgun.
U.S. Attorney Bill Killian stated, “I want to commend all of those agencies and law enforcement officials who worked together to bring these individuals to justice. It took a joint effort by all agencies involved to achieve this result. "
The indictment and subsequent conviction of Johnson was the result of an investigation conducted by the Sullivan County Sheriff’s Department, Washington County Sheriff’s Department, Hampton County, South Carolina Sheriff’s Office, First Judicial District Drug Task Force, Tennessee Bureau of Investigation, Drug Enforcement Administration, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Christian Lampe represented the United States.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Rochester Man Pleads Guilty to Drug ChargesRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Cyle Krepps, a/k/a Black, a/k/a Trick, a/k/a Durell, a/k/a Dred, 25, of Rochester, N.Y., pleaded guilty before U.S. District Judge Frank P. Geraci, Jr. to conspiracy to possess with intent to distribute and to distribute 280 grams or more of cocaine base, and possession of a firearm in furtherance of a drug trafficking crime. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of life, a fine of $10,000,000 or both.
Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that between 2009 and 2011, Krepps processed cocaine into cocaine base which he then sold in various quantities and at different locations in the City of Rochester, including a house at 95 Friederich Park. On September 14, 2011, law enforcement officers arrested Krepps driving a rental vehicle after surveilling him leave 95 Friederich Park. The defendant had keys to the residence and over $2,200 in U.S. currency when he was arrested.Officers then executed a search warrant at 95 Friederich Park, which was barricaded and monitored by an alarm system. Inside, officers seized a stolen, pistol-grip AR-15 style rifle chamber-loaded with seven rounds of live ammunition, a bag containing approximately 2 grams of cocaine base, a cell phone, and drug trafficking paraphernalia, which included scales for weighing drugs, empty bags for packaging drugs for sale, and dilutant to process drugs.
The conviction is the culmination of an investigation by members of the Violent Enforcement Suppression Team (“VEST”) of the Rochester Police Department, under the direction of Chief James Sheppard, the Greater Rochester Area Narcotics Enforcement team (“GRANET”), under the direction of Lieutenant Gerald Smith, and Special Agents of the Bureau of Alcohol Tobacco, Firearms and Explosives under the direction of Scott Heagney.
Sentencing is scheduled for August 8 at 2:00 p.m. before Judge Geraci.
Registered Sex Offender Charged with Distributing Images of Child Sexual Abuse from New Jersey Law Office ComputerRead the Press Release
NEWARK, N.J. – A registered sex offender employed at a law office in Paterson, N.J., will appear in court today following his arrest at the office late yesterday after law enforcement officers discovered alleged child pornography on his work computer, U.S. Attorney Paul J. Fishman announced.
Kevin Rease, 32, of Hackettstown, N.J., is charged by Complaint with one count of distributing images of child sex abuse over the Internet. He is scheduled to appear this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to the criminal Complaint:
On March 12, 2013, an undercover FBI agent downloaded images depicting child sexual abuse from an individual using an assumed name on a public Internet-based peer-to-peer file sharing network. The investigation revealed that the individual was logged on to the network using an Internet Protocol, or “IP,” address belonging to the law office where he worked.
The FBI executed a search warrant yesterday at the Paterson law office, seizing digital images depicting child sexual abuse, including material involving prepubescent minors. Rease’s work computer was logged onto the peer-to-peer network at the time, under the same assumed name which had offered illegal images for download on March 12.
As a previously convicted sex offender, Rease faces a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 40 years in prison, and a $250,000 fine if convicted of the offense.U.S. Attorney Fishman credited special agents of the FBI, Newark Division’s Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to the arrest.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charge and allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
13-173
Defense counsel: William Ware Esq., Chester, N.J.
Rease Complaint
Prescription Drug Take-Back to Be Held Saturday, April 27, 2013Read the Press Release
Montgomery, Alabama - Prescription Drug Take-Back Day will be held on Saturday, April 27, 2013, at locations throughout the State, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama, and Clay Morris, Drug Enforcement Administration Assistant Special Agent in Charge for Alabama.
Alabamians will have the opportunity to turn in their old prescription drugs at drop-off sites throughout the State on Saturday, April 27. A list of collection sites is available online at the Drug Enforcement Administration (DEA) website, deadiversion.usdoj.gov, or citizens may inquire at their local police departments and sheriff’s offices. The DEA may also be contacted by calling the toll free number at 1-800-882-9539.
Prescription drug abuse has become an enormous problem in our society. According to the Partnership for a Drug Free America:
- 1 in 6 teenagers have used a prescription drug in order to get high or change their mood.
- Only 6 percent of parents of teens say they have a child who abused medicine. However, 10 percent of teens admit to misusing/abusing medicines in the past 6 months.
- Two thirds of teen who abuse pain relievers say they get them from family members and friends.
- Only 2 percent of parents of teens admit giving their child medication not prescribed for them. Yet 22 percent of teens say they were given a prescription medicine not meant for them by their parents.
- More Americans die from drug overdoses than in car crashes.
- One person dies every 19 minutes from a drug overdose in the Unites States.
- Opioid pain relievers are responsible for more overdose deaths than cocaine and heroin combined.
Clearly, this is an enormous problem for our youth as well our adult citizens. Keeping prescription drugs after they are no longer needed may entice a teen to try the drug. However, if you safely dispose of your medicine, you will keep it away from teens or others that may abuse the drugs. The Alabama Department of Public Health has cited prescription drug abuse as an emerging public health issue and the nation’s fastest-growing drug problem.
In addition to concerns of potential abuse or overdose, it is also important environmentally that medicines be disposed of in a proper manner rather than simply being thrown into garbage, flushed away, or poured down drains, as they could contaminate water supplies and cause an environmental hazard. Also, expired drugs may have lost their effectiveness and therefore no longer be a safe and adequate treatment for the conditions for which they were prescribed.
“This drug Take Back Day allows us to rid our medicine cabinets of these potentially lethal drugs,” stated U.S. Attorney Beck. “We ask all of our citizens to use this day to help make their homes a safer place for their family and friends.”
“Take Back is an important step in ridding our country of lethal, illegal drugs,” stated DEA Assistant Special Agent in Charge Clay Morris. “When the results of the five previous Take-Back Days were combined, the DEA, and its state, local, and tribal law-enforcement and community partners have removed 1,483,580 pounds (742.5 tons) of medication from circulation. This speaks volumes about the need to develop a convenient way to rid homes of unwanted or expired prescription drugs. Until such laws are passed, law enforcement is the only entity that citizens can use to legally and safely dispose of these drugs.”
Each collection site will be supervised by a law enforcement officer because the program involves controlled substances.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Pittston Man Sentenced for Cocaine DistributionRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that Senior United States District Court Judge Edwin M. Kosik sentenced Richard A. Burgio, age 50, of Pittston, Pennsylvania, Tuesday to 18 months’ imprisonment for distributing cocaine on numerous occasions between 2010 and April 18, 2012, in Luzerne County.
United States Attorney Peter J. Smith noted that in additional to the 18-month term of imprisonment, Judge Kosik also ordered that Burgio be placed on supervised release for a period of two years following the service of his sentence.The case was investigated by special agents of the Federal Bureau of Investigation, the Pennsylvania State Police, and the Pennsylvania Attorney General’s Office. Assistant United States Attorney John Gurganus prosecuted the case.
Pharr Man Admits Drug Crimes and Cartel Ties via Facebook, Heads to Federal PrisonRead the Press Release
McALLEN, Texas – Erick Ochoa-Rodriguez, 19, of Pharr, has been ordered to prison for almost 10 years following his convictions for conspiring to possess and actually possessing marijuana with the intent to distribute the controlled substance to another, United States Attorney Kenneth Magidson announced today. A federal jury in McAllen convicted Ochoa-Rodriguez on Thursday, Feb. 7, 2013, after nearly three days of trial.
Today, U.S. District Judge Micaela Alvarez, who presided over the trial, handed Ochoa-Rodriguez a total of 115 months in federal prison which will be followed by a four-year-term of supervised release. At the hearing today, the government presented additional evidence showing Ochoa-Rodriguez to be a cartel operative involved in drug and firearms trafficking, bulk cash smuggling and cartel violence. In many of the Facebook posts introduced at the sentencing hearing, he bragged about trafficking cocaine, selling firearms, recruiting drug dealers and even kidnapping other rival drug dealers before taking them to Mexico where they would be tortured and killed.
In handing down the sentence, Judge Alvarez noted the evidence introduced at trial and during the hearing today indicated that Ochoa-Rodriguez was “in the [drug trafficking] business” and had “embraced this life as a drug trafficker.” Judge Alvarez went on to say that any other sentence would only serve to “encourage this lifestyle” and his continuing “disregard for the law.” Judge Alvarez further mentioned that while the defendant’s age would usually serve to lessen his sentence, he has repeatedly relied upon his age to manipulate law enforcement and the courts.
Ochoa-Rodriguez was charged in an indictment returned on Nov. 13, 2012. During trial, the government presented photos, maps and witness testimony illustrating his attempt to receive 175 kilograms of marijuana from unknown individuals carrying the drugs from the border.
On Oct. 29, 2012, Border Patrol agents encountered Ochoa-Rodriguez as he drove his vehicle to a planned rendezvous near a levee within two miles of the border with seven individuals who had carried marijuana bundles from the Rio Grande River. He immediately fled, first in his vehicle and then on foot into a densely forested area. Agents ultimately located him as he was lying in the fetal position within dense overgrowth through the use of a canine unit, trackers and aircraft.
The government also proved this was not the defendant’s first encounter with law enforcement. Additional evidence demonstrated that Ochoa-Rodriguez received 125 kilograms of marijuana from undercover federal agents on June 11, 2012, before successfully fleeing law enforcement on that occasion. Further investigation revealed his growing ties with Mexican Drug Cartels and his involvement in cocaine and firearms trafficking, money laundering and other cartel-related crimes. The government introduced photographs depicting Ochoa-Rodriguez with firearms and large sums of Untied States currency.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case is being investigated by the Drug Enforcement Administration, Border Patrol and Homeland Security Investigations. Assistant United States Attorney Grady J. Leupold is prosecuting the case.
Paul Daniel Bottomley Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on April 24, 2013, before U.S. Magistrate Judge Jeremiah Lynch, PAUL DANIEL BOTTOMLEY, a 48-year-old resident of Belgrade, Montana, pled guilty to Misprision of a Felony. Sentencing has been set for July 31, 2013. He is currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
In April of 2010, the Food and Drug Administration, Office of Criminal Investigations (FDA-OCI) began to investigate a source of supply for unapproved oncology (cancer) drugs - Montana Health Care Solutions (MHCS). MHCS was owned by PAUL DANIEL BOTTOMLEY. The business was opened in 2008.
The investigation uncovered that BOTTOMLEY imported misbranded and unapproved cancer drugs from foreign countries and sold those drugs to American physicians - all of which violates the Food, Drug, and Cosmetics Act (FDCA) of the United States.
In October of 2010, BOTTOMLEY sold MHCS to Canada Drugs, Ltd. (hereinafter "Canada Drugs"), an Internet based pharmacy corporation located in Winnipeg, Manitoba, Canada. Canada Drugs is owned by Krisjtan Thorkelson. Rockley Ventures, Ltd. (hereinafter "Rockley Ventures"), a Canada Drugs subsidiary, was based in Barbados and was managed in large part by Tom Haughton. Rockley Ventures paid BOTTOMLEY $5 million for MCHS. Canada Drugs, Rockley Ventures, and the related companies retained BOTTOMLEY's company's name, domain name, any stock on hand, and his physician distribution list. While the companies continued to solicit and distribute to BOTTOMLEY's previous customers using his company's name and letter head, the companies significantly increased the number and type of drugs offered to the physicians.
BOTTOMLEY was also to remain as an advisor to Rockley Ventures, Canada Drugs and related companies following the sale of MHCS. BOTTOMLEY was paid $10,000 per month for his advisory services by the companies. In his advisor capacity, BOTTOMLEY occasionally made sales calls to physicians or office managers and dealt with shipment issues.
On January 13, 2012, FDA-OCI received information from the United Kingdom Medicines and Healthcare Products Regulatory Agency (MHRA), United Kingdom, regarding a potential counterfeit oncology drug known as Avastin(r) (marketed in Turkey as Altuzan). Avastin(r) is a prescription drug that requires a uniform cold temperature during shipment. Avastin(r) is a prescription drug that is typically intravenously infused into cancer patients. MHRA informed FDA-OCI that they had became aware of a United Kingdom wholesaler that purchased 167 packs of Avastin(r) 400 mg from a supplier in the European Union (EU). The United Kingdom wholesaler shipped 41 of the identified packs of Avastin(r) to Volunteer Distribution ("Volunteer"), a company located in Gainesboro, Tennessee. Volunteer Distribution had a pharmaceutical distribution contract with QSP, a subsidiary company of Canada Drugs. Volunteer Distribution received oncology drugs with the understanding that they would ship those drugs to clients once they were provided with a client and packing list. Normally, Volunteer Distribution would receive a quantity of oncology drugs from the United Kingdom which were stored until the client and packing list were received. The packing list would specify the names of clients, their mailing address and the drugs they were to receive. The packing list also included "Montana Healthcare Solutions" in the upper left-hand corner with a symbol associated with MHCS.
Initial preliminary analysis conducted by MHRA with the United Kingdom wholesaler indicated at minimum the potential existence of counterfeit labeling on the Avastin(r) in question. A subsequent lab analysis of the Avastin(r) determined the drug to be counterfeit - the substance seized and tested did not contain any of the active drug ingredient bevacizumab that is found in legitimate versions of Altuzan and Avastin(r). It was determined that Volunteer Distribution had already shipped 36 of the 41 packs of Avastin(r). The 5 remaining packs of the counterfeit Avastin(r) were shipped back to the United Kingdom wholesaler. The counterfeit Avastin(r) was shipped to Volunteer Distribution from a company identified as River East Supplies, Ltd. ("River East"), which is located in the United Kingdom.
Following a review of the Volunteer Distribution records FDA-OCI was able to identify customers that received oncology drugs from Volunteer - including the counterfeit Avastin(r). Numerous physicians or practice managers were interviewed by law enforcement about their purchases form MHCS. Most interviewed stated that their point of contact was PAUL BOTTOMLEY, who was a sales representative for MHCS. The physicians and practice managers interviewed confirmed that the drugs they received from Volunteer were sent pursuant to orders they placed with MHCS, and that payments for the shipments were made to MHCS for the drugs received from Volunteer.
Some physicians and practice managers admitted to law enforcement that they knew the drugs were foreign versions of United States approved products based on the price being charged as well as the packaging. For example, MHCS charged $1,700 per vial for Avastin(r), when the product would normally cost nearly $2,300 per vial. Some physicians admitted that although they knew the drugs were foreign, unapproved versions of U.S. prescription drugs, they still billed insurance programs the prices they would bill for U.S. prescription drugs.
At the time of the shipments of the counterfeit Avastin(r) into the United States, MHCS was owned and operated as a subsidiary of Canada Drugs and Rockley Ventures. Canada Drugs and Rockley Ventures were responsible for the shipment of misbranded, adulterated and counterfeit drugs into the United States, all in violation of the FDCA.
Although BOTTOMLEY had no involvement in the importation or distribution of the counterfeit Avastin(r), BOTTOMLEY did become aware of the distribution of the counterfeit Avastin(r) by January of 2012. By that date, BOTTOMLEY would have been aware and had concerns about the pedigree and purity of the drugs that were being imported and sold by Canada Drugs and Rockley Ventures. In particular, BOTTOMLEY was aware at that time that Canada Drugs and Rockley Ventures were importing and distributing misbranded and unapproved drugs in violation of federal law. BOTTOMLEY also failed to notify authorities of the fact that Canada Drugs and Rockley Ventures were importing and distributing
In a separate civil proceeding handled by AUSA Victoria Francis, BOTTOMLEY agreed to forfeit to the United States $1,088,378.17 in United States currency, a 2011 Aston Martin/Vantage V-12 and 10 parcels of real property in Gallatin County, Montana. The property was forfeited because the government established the property was the proceeds of the illegal activity outlined in the criminal case. The total forfeiture in the matter is valued at approximately $6 million.
The defendant's conduct in this case was motivated by greed. Bottomley utilized the grey market and sold potentially dangerous unapproved and misbranded pharmaceuticals at discounted prices to American physicians all for a healthy profit. Today's prosecution and the sizeable forfeiture taken in the related civil case demonstrates that the safety and health of the American public is paramount to the U.S. Attorney's Office," U.S. Attorney for the District of Montana Michael W. Cotter.
The defendant in this case violated the law by selling grey-market, unapproved pharmaceuticals, a dangerous practice that puts at risk the health and safety of the American consumer. FDA's Office of Criminal Investigations will continue to pursue those that threaten the safety and security of the public by engaging in the distribution of counterfeit and unapproved medicines. We commend the United States Attorney's office for their commitment to supporting this prosecution," John Roth, FDA-OCI Director.
BOTTOMLEY faces possible penalties of 3 years in prison, a $250,000 fine and 1 year supervised release.
The investigation was conducted by the Food and Drug Administration, Office of Criminal Investigations.
Ocala Man Pleads Guilty to Manufacturing, Possessing, and Selling Counterfeit CurrencyRead the Press Release
Ocala, Florida - United States Attorney Robert E. O'Neill announces that Raymond Earl Jones, Jr. (24, Ocala) pleaded guilty yesterday to four counts of making, selling, and possessing counterfeit United States Federal Reserve Notes. He faces a maximum penalty of 20 years in federal prison on each count. A sentencing date has not been set.
According to documents filed with the court, beginning on at least October 30, 2012, and continuing through February 7, 2013, Jones manufactured more than $70,000 in counterfeit United States currency. On November 15, 2012, at a gas station in Ocala, Jones sold $7,900 in counterfeit currency to another individual in exchange for genuine currency. On December 18, 2012, near an Ocala shopping plaza, Jones sold $9,020 in counterfeit currency to another individual in exchange for genuine currency.
On January 31, 2013, deputies from the Marion County Sheriff’s Office seized counterfeit currency and the equipment used to manufacture the notes from an Ocala residence where Jones was in the process of manufacturing counterfeit money. Jones was arrested by U.S. Secret Service agents on February 7, 2013. At the time of the arrest, agents recovered $60,400 in counterfeit currency.
This case was investigated by the United States Secret Service, the Marion County Sheriff’s Office, and the Ocala Police Department. It is being prosecuted by Assistant United States Attorney Andrew C. Searle.
Northshore Contractor, Raymond Grow, Pleads Guilty <br /> to Making A False Statement to A BankRead the Press Release
RAYMOND GROW, III, age 40, a resident of Covington, Louisiana, pled guilty today to making a false statement to a bank in order to obtain a loan, announced U. S. Attorney Dana J. Boente.
GROW pled guilty before U. S. District Court Judge Helen G. Berrigan to a one count felony bill of information charging him with making a false statement in his loan application to First American Bank and Trust. The maximum penalty GROW faces is imprisonment of 30 years, a fine of up to $1,000,000, and a term of supervised release of five years. Sentencing has been scheduled for July 31, 2013 at 9:00 AM.
The government filed a bill of information on December 26, 2013 charging GROW with a violation of making a false statement to a bank. GROW admitted today that his company, Masters Built Construction, LLC, applied for and obtained a loan from First American on May 10, 2006, for $3,450,000 to develop 22 acres located on Hwy 22, in Ponchatula, Louisiana, called The Landings subdivision. The loan was personally guaranteed by GROW. He further admitted that he knew that First American required that he provide a Wetland Determination letter issued by the Corps for the 22 acres before the bank would approve and fund the loan. On May 10, 2006, GROW submitted to the bank’s closing attorney, a letter appearing to be an official Wetland Determination Letter issued by the Corps, reflecting that there was only a small percentage of wetlands on the 22 acres. Based on the material false document, First American closed on the loan. GROW further admitted that he created the letter by cutting and pasting information from another Wetland Determination letter.
The bank learned of the false document when a prospective purchaser of the 22 acres was conducting its due diligence prior to purchasing the property. In a meeting with the Corp, the prospective purchaser presented the Wetland Determination letter to the Corp. The Corp researched the permit numbers listed on GROW’s letter and determined that the information GROW had listed in his letter applied to a completely different piece of property. The Corp stated that it had never conducted a Wetland Determination on the 22 acres.
This case was investigated by the Federal Bureau of Investigations and was prosecuted by Assistant United States Attorney Dorothy Manning Taylor.
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Nine More Members of Racketeering Enterprise Indicted on Investment Fraud, Mortgage Fraud and Related ChargesRead the Press Release
Two Others To Plead Guilty On Related Charges
A Total of 92 Defendants Have Been Charged To Date in Operation Wax HouseCHARLOTTE, N.C. – A federal superseding indictment unsealed today in U.S. District Court charged nine additional defendants in Charlotte and elsewhere with racketeering, investment fraud, mortgage fraud, bank bribery and money laundering, announced the U.S. Attorney’s Office for the Western District of North Carolina. This latest round of criminal charges resulting from Operation Wax House, a mortgage fraud investigation which began in the Western District of North Carolina in 2007, brings the total number of defendants charged to date to 92, of which 66 have pleaded guilty.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte Division, Jeannine A. Hammett, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI) and Elaine Marshall, North Carolina Secretary of State join the U.S. Attorney’s Office in making today’s announcement.
The superseding federal racketeering indictment was returned by a federal grand jury sitting in Charlotte on April 18, 2013 and remained sealed until today. The superseding indictment adds nine defendants to the existing charges, bringing to 26 the total number of individuals currently charged as part of a criminal organization (the “Enterprise”) that operated principally in the cities of Charlotte and Waxhaw, N.C., and stole more than $75 million from investors and mortgage lenders.
According to allegations contained in the unsealed indictment:
The Enterprise, which operated from about 2005 through 2012, engaged in an extensive pattern of racketeering activities, consisting of investment fraud, mortgage fraud, bank fraud, money laundering and distribution of illegal drugs. Members of the Enterprise also bribed bank officials. In the investment fraud portion of the racketeering activities, the co-conspirators targeted professional athletes and doctors as well as their personal and professional acquaintances and convinced them to invest in a series of sham corporations controlled by the Enterprise. For example, members of the Enterprise told potential investors that one of the sham corporations, PEI, was a commodities trading company that would broker deals for the supposed export-import of various commodities like rice-trading and gold and diamond mining in Africa. In truth and fact, instead of investing the victims’ money as promised, the Enterprise used the funds obtained through PEI to support its members’ lifestyles and to make Ponzi-style payments to other victims. The co-conspirators stole over $27 million from more than 50 investor victims, including monies that the investor victims were induced to obtain as loans from financial institutions.
The Enterprise’s mortgage fraud operations involved acquiring luxury homes in neighborhoods in Charlotte and Waxhaw. One member of the Enterprise would agree with a builder to purchase a property at the “true price.” The Enterprise would then arrange for a buyer to purchase the property at an inflated price. In most circumstances, the buyer would agree to purchase the property in his or her own name and sign whatever documents were necessary, in exchange for a hidden monetary kickback. The builder would sell the property at the inflated price, the lender would make a mortgage loan on the basis of that inflated price, and the difference between the inflated price and the true price would be extracted at closing by the Enterprise.
The vast majority of the houses purchased as part of the Enterprise’s mortgage fraud operations subsequently fell into foreclosure, resulting in losses of hundreds of thousands of dollars in most instances. Over the course of the conspiracy, members of the Enterprise purchased four condos in one building for inflated prices, resulting in an aggregate loss on those units of approximately $2 million.
Members of the Enterprise also engaged in bank bribery conspiracies, by bribing bank employees to cash checks received from fraudulent mortgage transactions carried out by the Enterprise, and to deposit checks in a manner designed to further conceal the true distribution of the proceeds, and to supply false letters of credit in the names of local banks in an attempt to obtain financing from other financial institutions. In one instance a bank employee was paid a $55,000 bribe for preparing and providing a false letter of credit.
The racketeering activities of the Enterprise also included distribution of illegal drugs. For example, members of the Enterprise transported truckloads of marijuana from Texas and elsewhere to North Carolina, using companies utilized in both the drug trafficking and mortgage fraud operations and trucks controlled by members of the Enterprise and others.
Defendants added in this superseding indictment are:
• William Brown, 34, of Matthews, N.C. is charged with racketeering conspiracy and mortgage fraud. Role: Promoter and buyer. Status: In custody, pending release on conditions, following arrest and initial appearance.
• Benjamin Clarke, 40, of Smyrna, Ga. is charged with mortgage fraud. Role: Buyer. Status: Released following arrest and initial appearance.
• Frank DeSimone, 40, of Charlotte is charged with racketeering conspiracy, securities fraud, wire fraud to defraud investors and money laundering. Role: Promoter. Status: To appear for an initial appearance pursuant to a summons.
• Lorie Dooley, 48, of Washington, D.C. is charged with racketeering conspiracy, mortgage fraud and bank bribery. Role: Promoter. Status: To appear for an initial appearance pursuant to a summons.
• James E. Fink, 43, of Waxhaw is charged with racketeering conspiracy and mortgage fraud. Role: Builder. Status: To appear for an initial appearance pursuant to a summons.
• Ralph Johnson, 35, of Charlotte is charged with racketeering conspiracy and mortgage fraud. Role: Promoter. Status: In custody.
• Denetria Myles, 41, of Charlotte is charged with racketeering conspiracy and mortgage fraud. Role: Promoter. Status: To appear for an initial appearance pursuant to a summons.
• Matthew Newland, 39, of Coralville, Iowa is charged with racketeering conspiracy and mortgage fraud. Role: Promoter and seller. Status: Released following arrest and initial appearance.
• Nazeere Saddig, 40, formerly of Charlotte is charged with racketeering conspiracy and mortgage fraud. Role: Promoter and buyer. Status: Fugitive.
• Additionally, Steve Jones, 44, of Waxhaw, previously charged with securities fraud, wire fraud to defraud investors and money laundering conspiracy has now also been charged with racketeering conspiracy. Role: Promoter. Status: To appear pursuant to a summons.
Today, the U.S. Attorney’s Office also announced charges filed against two additional promoters in the mortgage and investment fraud scheme. They acknowledge taking part in the conspiracy and have agreed to plead guilty. They are:
• Waylon Long, 40, of Texas is charged with mortgage fraud conspiracy and money laundering conspiracy. Role: Promoter. Status: To appear for initial appearance upon a summons.
• Melvin Moye, 34, of Charlotte is charged with investment or securities and mortgage or bank fraud conspiracy. Role: Promoter. Status: Pleaded guilty and is awaiting sentencing.
Additionally, the U.S. Attorney’s Office announced that three of the original 17 defendants who were charged with racketeering conspiracy have pleaded guilty to those racketeering charges. They are:
• Travis Bumpers, 36, of Charlotte pleaded guilty to racketeering conspiracy to commit securities fraud, mortgage fraud, wire fraud and money laundering conspiracy. Role: Promoter. Status: In custody pending sentencing.
• Victoria Hunt, 36, of Rockville, Maryland, pleaded guilty to racketeering conspiracy, securities fraud, mortgage fraud, wire fraud to defraud investors, and money laundering. Role: Leader and promoter. Status: On house arrest pending sentencing.
• Purnell Wood, 41, of Holly Springs, N.C. pleaded guilty to racketeering conspiracy to commit mortgage fraud and money laundering. Role: Promoter. Status: Released pending sentencing.
The conspiracy to participate in the racketeering activities charge carries a maximum term of 20 years in prison and a $250,000 fine or twice the gross profits or other proceeds. The securities fraud charge carries a maximum term of 20 years in prison and a $250,000 fine. The bank fraud charge carries a maximum term of 30 years in prison and a $1 million fine. The wire fraud charge carries a maximum term of 20 years in prison and a $250,000 fine. The money laundering conspiracy charge carries a maximum term of 20 years in prison and a $500,000 fine or twice the amount of criminally derived proceeds. And, the bank bribery conspiracy charge carries a maximum term of five years in prison and a $250,000 fine.
An indictment is merely an allegation, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. In addition, the guilty plea of any other person is not relevant to the guilt of any indicted person.
Operation Wax House in the Western District of North Carolina is being handled by the Charlotte Division of the FBI, the Criminal Division of the IRS for the Financial Fraud Enforcement Task Force, and the Securities Division of the North Carolina Secretary of State. The prosecution for the government is being handled by Assistant United States Attorneys Kurt W. Meyers and Maria K. Vento and Special Assistant United States Attorney Kevin M. Harrington.The President’s Financial Fraud Enforcement Task Force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit www.stopfraud.gov.
The names and case numbers of the all the defendants charged to date in Operation Wax House are listed below, organized by their alleged role in the scheme.
Attorneys and Paralegals
Crawford/Mallard, Michelle 3:11cr374
Gates, Christine 3:09cr100
Norwood, Kelli, 3:09cr162
Rainer, Demetrius 3:08cr239/241
Smith, Troy, 3:08cr264Bank Insiders
Brown, Jamilia, 3:10cr124
Eason, Danyelle, 3:10cr116
Henson, Vic. F., 3:10cr124
Jackson, Mitzi, 3:11cr374
Ramey, Bonnie Sue, 3:10cr124Builders and Sellers
Fink, James, 3:11cr374; 3:12cr239
Jackson, Jennifer, 3:09cr241
Smith, Kelvis, 3:12cr238
Viegas, Jeffrey, 3:12cr298
Wittig, Mark, 3:12cr335
Wood, Gary, 3:09cr208Facilitators and Financiers
Hickey, Denis, 3:09cr103
McClain, Landrick, 3:10cr124
Mitchell, Ann Tyson, 3:12cr239
Panayoton, Sherrill, 3:11cr176
Taylor, Alicia Renee, 3:10cr124
Wilson, Willard, 3:09cr161Buyers
Banks, Arketa, 3:12cr297
Hillian, Kirk, 3:12cr83
Mathis, Charles, 3:10cr1
Mobley, Sarena, 3:10cr124
Moore, George, 3:12cr337
Richards, Dan, 3:10cr119
Smith, Kevin, 3:12cr341
Tyler, Glenna, 3:11cr200
Vaughn, Mary, 3:12cr329
Wallace, Jamaine, 3:12cr330
Wellington, William, 3:12cr333Notary Public
Willis, Anthony, 3:09cr218Appraiser
Darden, Clinton 3:10cr108Mortgage Brokers
Bradley, Bonnette, 3:12cr299
Clarke, Linda, 3:10cr120
Flood, Ericka, 3:10cr124
Goodson-Hudson, Crystal, 3:12cr339
Mahaney, Robert, 3:12cr34-0
Scagliarini, Coley, 3:11cr374
Staton, Walter, 3:10cr113
Vaughn, Danielle, 3:12cr329
Williams, Marcia, 3:12cr334
Williams, Sean, 3:12cr336
Woods, Joseph, 3:09cr178Real Estate Agents
Belin, Chris, 3:11cr374
Clark, Christina, 3:09cr44
Lee, Shannon, 3:12cr338
Pasut, Holly Hardy, 3:12cr331
Wolf, Nathan Shane, 3:12cr239
Wood, Gary, 3:09cr208Promoters
Amini, Ramin, 3:12cr239
Barnes, Vonetta Tyson, 3:12cr239
Brown, William, 3:12cr239
Bumpers, Travis, 3:12cr239
Carr, Stephen, 3:10cr124
Clarke, Benjamin, 3:12cr239
Clarke, Reuben, 3:10cr120
Coleman, Gregory, 3:10cr118
DeSimone, Frank, 3:12cr239
Dooley, Lorie, 3:12cr239
Hitchcock, Jimmy, 3:11cr374
Hubbard, Glynn, 3:12cr239
Hunt, Victoria, 3:12cr239
Hunter, Toby, 3:12cr239
Johnson, Ralph, 3:12cr239
Jones, Steven, 3:12cr239
Jones, Tyree, 3:10cr230
Long Waylon, 3:12cr239
Marshall, Michael, 3:07cr283
McDowell, John, 3:12cr239
McPhaul, Elizabeth, 3:10cr114
Mehr, Kurosh, 3:12cr239
Mitchell, Ann Tyson, 3:12cr239
Moye, Melvin, 3:12cr239
Myles, Denetria, 3:12cr239
Newland, Matthew, 3:12cr239
Perry, John Wayne, Jr., 3:12cr239
Perry, Kim, 3:10cr25
Phillips, Rick, 3:10cr115
Saddig, Nazeere, 3:12cr239
Sharreff-El, Drew, 3:10cr124
Sherald, Kiki, 3:10cr117
Simmons, Aaron, 3:09cr240
Snead, Todd, 3:10cr124
Staton, Lisa, 3:10cr113
Thorogood, Donte, 3:12cr239
Tyson, Carrie, 3:12cr239
Tyson, James, Jr. 3:12cr239
Tyson, James, Sr., 3:12cr239
Wellington, Phillip, 3:12cr332
Wood, Purnell, 3:12cr239New Jersey Businessman Pleads Guilty to Tax ChargesRead the Press Release
PHILADELPHIA - Mark Olkowski, 62, of North Wildwood, NJ, a business partner in K & O Sporting Goods, pleaded guilty today to tax charges for filing false personal income tax returns with the Internal Revenue Service from 2006 through 2009. K & O, on Moyamensing Avenue in South Philadelphia, is a distributor of t-shirts and other clothing items to labor unions, municipalities, and political candidates. During 2006 through 2009, Olkowski failed to report a total of approximately $148,000 of income to the IRS. The unreported income included significant sums of cash received by K & O but which Olkowski pocketed and did not deposit to K & O business accounts, and income he received from making personal expenditures using corporate credit cards. The tax loss on this unreported income is approximately $25,000. A sentencing hearing is scheduled for July 24, 2013.
In addition to filing false income tax returns, Olkowski also pleaded guilty to 15 counts of wire fraud concerning a fraud he committed upon the Pennsylvania State Unemployment Compensation system. Olkowski made two false applications for unemployment compensation benefits. In his applications, Olkowski falsely claimed to have been laid off from K & O, and did not tell unemployment compensation authorities that he was an owner of K & O Sporting Goods and that he was receiving income from K & O while he was applying for unemployment benefits. The loss to the unemployment compensation system is approximately $16,000.The maximum sentence for each of the four counts of filing false income tax returns is three years incarceration. The maximum sentence on each of the 15 counts of wire fraud is 20 years in prison. Olkowski also faces restitution to the IRS, a possible fine, and a $1,900 special assessment.
The case was investigated by the Internal Revenue Service Criminal Investigations and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Paul L. Gray and John M. Gallagher.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Nestor Alberto Duran-esquivel Sentenced for Illegal ReentryRead the Press Release
NESTOR ALBERTO DURAN-ESQUIVEL, age 39, a citizen of El Salvador was sentenced today in federal court by U. S. District Judge Helen G. Berrigan, announced U.S. Attorney Dana Boente. DURAN was sentenced to 24 months imprisonment. In addition to the term of imprisonment, Judge Berrigan ordered that DURAN be placed on three years of supervised release following the term of imprisonment, during which time the defendant will be under federal supervision and risks an additional term of imprisonment should he violate any terms of supervised release.
According to court documents, on October 10, 2012, DURAN pled guilty to a one-count indictment admitting he was an alien who was previously removed and was knowingly and unlawfully found in the United States, in Jefferson Parish, Louisiana on June 9, 2012, without the Attorney General or Secretary of the Department of Homeland Security, having expressly consented to his re-application for admission into the United States. DURAN’s sentence was subject to enhancement based on a previous aggravated felony conviction.
This case was investigated by United States Immigration and Customs Enforcement, Enforcement and Removal Operations. The case was prosecuted by Special Assistant United States Attorney Robert Weir.
Nebraska Man Arraigned on Assault ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that a Winnebago, Nebraska man has been indicted by a federal grand jury.
Lawrence Bassette, age 28, was indicted by a federal grand jury on March 13, 2013 for Assault Resulting in Serious Bodily Injury. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 22, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 10 years' imprisonment, a $250,000 fine or both, and a period of supervised release of 3 years.
The charge is merely an accusation and Bassette is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy Morley is prosecuting the case.
Bassette was remanded to the custody of the U.S. Marshal. A trial date has not been set.
National Crime Victims’ Rights Week 2013Read the Press Release
CHARLOTTESVILLE, VIRGINIA -- Crime impacts tens of millions of Americans every year. It not only deprives victims of property and physical safety, but also shakes their sense of security and peace. Crime victimization has significant emotional, physical and financial consequences for victims, families, friends and communities.
Only 30 years ago, crime victims had no rights, access to compensation, or services to help rebuild their lives. They were often excluded from courtrooms and treated as an afterthought by the criminal justice system.
Through decades of advocacy and hard work, we have come a long way. Today, every state has enacted crimes victims’ rights laws and established crime victim compensation funds. More than 10,000 victim service agencies help victims throughout the nation. Every year, states and localities receive millions of federal dollars to support these services.
These resources help survivors of crime bravely face the task of reshaping their lives after victimization. Through participation in the criminal justice process, crime victims today routinely obtain access to counseling and other victim assistance services, secure restitution or forfeiture to provide financial recovery, and ensure that their voices are heard by judges as cases are resolved.
This month, the Department of Justice will join with people across the country to recognize National Crime Victims’ Rights Week (April 21-27), a time to honor local champions of crime victims’ rights. This year’s theme – New Challenges. New Solutions. – highlights the ongoing effort to provide needed services to crime victims of every kind. During this week we will honor victims and salute victim advocates and criminal justice professionals who fight for heighted awareness of victim’s issues.
On Wednesday, April 24 at 2 p.m., leaders from across Central Virginia honored National Crimes Victims’ Rights Week during a ceremony at Darden Towe Park in Charlottesville.
Leaders from the City of Charlottesville, Albemarle County, Greene County, Louisa County, the Department of Homeland Security, The Shelter for Help in Emergency, the Charlottesville/Albemarle County Domestic Violence Advocate and the Sexual Assault Resource Agency joined together to commemorate the power and strength shown by victims of crime. We will release biodegradable balloons honoring those who have advanced the cause of victims’ rights in the areas of domestic violence and stalking, violent crimes, crimes against the elderly, human trafficking, white collar and financial fraud, sexual assault and crimes against children and for those victims who have yet to be identified.
This event was being sponsored by the victim/witness advocacy programs from: Albemarle County, the United States Attorney’s Office for the Western District of Virginia, the City of Charlottesville, Fluvanna County, Greene County, Homeland Security Investigation, and the Sexual Assault Resource Agency, the Shelter for Help in Emergency and the Albemarle/Charlottesville Domestic Violence Advocacy Program.
United States Attorney Timothy J. Heaphy, Shirley Atkins, and others, released balloons Thursday during an event to honor National Crime Victims’ Rights Week.
Murrysville Woman Charged in Two Schemes to Steal MoneyRead the Press Release
PITTSBURGH, Pa. - A resident of Westmoreland County has been indicted by a federal grand jury in Pittsburgh on charges of mail fraud, credit card fraud and aggravated identity theft, United States Attorney David J. Hickton announced today.
The seven-count indictment named Dawn Penzera-Lackey, 40, of Murrysville, Pa., as the sole defendant.
According to the indictment presented to the court, after having previously been convicted of credit card fraud in 2006, Penzera-Lackey engaged in two new schemes to steal money. In the first scheme, while employed as a food manager at a country club, Penzera-Lackey stole an $1800 check from her employer that she was supposed to use to pay a vendor. After depositing the check into her personal bank account, Penzera-Lackey attempted to defraud the vendor by mailing to the vendor a bogus check drawn on an account that had long been closed. In the second scheme, Penzera-Lackey stole three credit cards from friends, who were owners of a small business. Penzera-Lackey then used the credit cards to make various purchases for herself and family members totaling over $16,000.
The law provides for a maximum total sentence of 20 years in prison as to each count of mail fraud and credit card fraud, a fine of $250,000, or both and a mandatory minimum sentence of two years imprisonment for the aggravated identity theft counts. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation leading to the indictment in this case in conjunction with the Belle Acres Borough Police Department and the Pennsylvania State Police, Belle Vernon Barracks.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Mitchell Man Sentenced for Federal Firearm OffenseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mitchell, South Dakota man was sentenced on April 22, 2013 by U.S. District Judge Karen E. Schreier.
Lonnie Dean Hunter, age 53, was sentenced to 27 months in prison to be followed by one year of supervised release for felony possession of a firearm.
Hunter was indicted by a federal grand jury on April 4, 2012 for being a felon in possession of a firearm and a felon in possession of ammunition. He pled guilty to the first offense on January 28, 2013, and the other offense was dismissed.
On December 3, 2011, Hunter possessed a bolt-action rifle. He is prohibited from possessing firearms due to a previous felony conviction.
This case was investigated by the Davison Co. Sheriff’s Department, the SD Department of Game, Fish & Parks, and the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant U.S. Attorney John E. Haak prosecuted the case.
Hunter was immediately turned over to the custody of the U.S. Marshal.
Michelle Steinfeldt Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on April 24, 2012, before U.S. District Judge Richard F. Cebull, MICHELLE STEINFELDT, a 34-year-old resident of Billings, appeared for sentencing. STEINFELDT was sentenced to a term of:
Prison: 37 months
Special Assessment: $100
Supervised Release: 5 years
STEINFELDT was sentenced in connection with her guilty plea to conspiracy to possess with the intent to distribute and distribution of methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
Beginning in approximately mid-2010, and continuing until late January 2012, STEINFELDT distributed methamphetamine she obtained from her source of supply to her customers in the Billings area. STEINFELDT distributed to at least ten individuals on a regular basis. STEINFELDT regularly communicated with her source of supply, other distributors and customers via cellular telephone and text message.
During the course of her involvement in the larger conspiracy, from mid-2010 to January 2012, STEINFELDT personally possessed with the intent to distribute and distributed over 50 grams of methamphetamine in the Billings area.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that STEINFELDT will likely serve all of the time imposed by the court. In the federal system, STEINFELDT 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 Billings Big Sky Safe Streets Task Force.
Mexican Boat Captain Convicted of Obstructing BoardingRead the Press Release
BROWNSVILLE, Texas – Jose Alejandro Carrillo, 24, of Matamoros, Mexico, has entered a plea of guilty to obstructing boarding, United States Attorney Kenneth Magidson announced today along with Rear Admiral Roy Nash, Commander, Eighth Coast Guard District.
Carrillo was the captain of a Mexican fishing boat, typically referred to as a “launcha,” that fled from a Coast Guard vessel attempting to detain them for an inspection on March 16, 2013. Carrillo had been fishing illegally in U.S. waters and did not want to lose his catch or the launch. A chase on rough open seas ensued, during which Carrillo had another crewmember, Ismael Lopez-Ortiz, assist him in controlling the launcha. During the chase, the launcha twice encountered the Coast Guard vessel. Carrillo finally stopped and allowed the launcha to be boarded and inspected after Carrillo’s crew asked him to stop the flight.
“Vessel operators who don't stop and attempt to flee from the Coast Guard put themselves and others at great risk,” said Nash. “We'll continue to work with our partner agencies to ensure those who violate this law are held accountable for their actions.”
Castillo will remain in custody pending his sentencing hearing, set for July 29, 2013, before United States District Judge Andrew S. Hanen. At that time, he faces up to five years in federal prison and a possible $250,000 fine.
Lopez-Ortiz, 23, also of Matamoros, was convicted of the misdemeanor charge of interfering with a federal agent.
The case, investigated by the Coast Guard Investigative Service, is being prosecuted by Assistant United States Attorney Joseph Leonard.
Massive Trade in Endangered Species Uncovered; U.S. Attorney Charges 7 with Smuggling Swim Bladders of Endangered Fish Worth Millions on Black Market; Officials See TrendRead the Press Release
Assistant U.S. Attorneys Valerie Chu (619) 546-6750 and Melanie Pierson (619) 546-7976Press Conference Photos click HERE
Complaints: Castaneda Complaint
Chung Complaint
Xie Complaint
Zhen ComplaintIndictments: Xie Indictment
When Song Shen Zhen came through a border crossing in Calexico recently, an officer noticed something under the floor mats in the back seat. But the plastic grocery bags he found weren’t filled with typical border contraband.They contained 27 dried swim bladders taken from the endangered Totoaba macdonaldi fish. The Totoaba’s large swim bladder – which is an internal gas-filled organ that helps a fish control its buoyancy - is highly prized for use in Chinese soups and is considered a very expensive delicacy. But because the species is federally-protected in both the U.S. and Mexico, it’s illegal to take, possess, transport or sell Totoaba.
On Friday, Zhen became the seventh person charged by the U.S. Attorney’s Office with Totoaba smuggling since February, when border officers first started noticing the rare fish under floor mats and concealed in coolers in the vehicles of border crossers.
The Southwestern border is most often associated with the highly lucrative drug- and people-smuggling trades. But there is another smuggling category of increasing concern to authorities – trafficking of endangered wildlife, with a black market that is potentially valued in the millions of dollars.
In the Zhen case, Customs and Border Protection officials seized 27 bladders and turned them over to a U.S. Fish and Wildlife Service agent (FWS), and the rest were returned to Zhen, who was allowed to leave. But unknown to Zhen, agents kept him under surveillance and followed him to his home in Calexico. Once they obtained a search warrant, they discovered that the house was sparsely furnished and appeared to be set up as a Totoaba factory.
In the hallways and rooms of the house, Totoaba swim bladders were laid out in rows to dry, with fans positioned to blow air over them. There was were ledgers, packing materials and other evidence consistent with the shipment of Totoaba swim bladders overseas.
Agents found an additional 214 swim bladders at the house, bringing Zhen’s total to 241, according to court documents. Agents estimated that if sold into foreign markets, the 241 Totoaba bladders could conservatively be worth more than $3.6 million. Black market value in the U.S. is about $5,000 per bladder and $10,000-plus in certain foreign Asian markets.
In the Chinese culture, the fish swim bladder is referred to as “fish maw” and may also come from a variety of non-endangered fish. Totoaba fish maw is valued for its high collagen content and some people believe the Totoaba swim bladders can boost fertility and improve circulation and skin vitality. Besides the soup, Totoaba meat is also used for food.
Zhen is the most recent example of Totoaba smuggling cases. In all, federal officials have charged seven defendants in what are currently believed to be unrelated cases, and have seized 529 bladders since February, and the season is only halfway over. The bladders were tested by the U.S. Fish and Wildlife Service’s (FWS) forensic lab to confirm species identification through DNA analysis.
In recent years, prosecutors have brought cases involving everything from endangered iguana meat to shark fins.
“Earth Week reminds us all of the importance of protecting our precious resources,” said U.S. Attorney Laura Duffy. “Our nation’s laws prevent plundering and poaching for financial gain. We intend to enforce those laws with passion.”
“One of the highest priorities of the USFWS Office of Law Enforcement is to investigate individuals and companies that are involved in the unlawful commercial trafficking and smuggling of protected animals and plants here and around the world. Many species, including Totoaba, are teetering on the brink of extinction due to poaching to supply the illegal wildlife trade. While we may never know how many Totoaba bladders were harvested illegally, such disregard for the protections that were put in place to benefit this endangered species could have a disastrous effect on the fish population,” said Deputy Chief Edward Grace.
“HSI agents are committed to using our investigative authorities and resources to combat all forms of illegitimate cross border trade,” said Derek Benner, special agent in charge for HSI San Diego. “Not only did this investigation stop the exploitation of an endangered species for financial gain, but it exposed the illicit smuggling pathways and networks used to bring these specimens into the country and beyond.”
“This is a great example of the continued diligence of CBP officers and agriculture specialists at ports of entry in California,” said Pete Flores, CBP director of field operations for the San Diego and Imperial Counties. “In addition to protecting our country from narcotics and stopping violators of immigration law, CBP officers and agriculture specialists have disrupted this criminal enterprise’s attempts to profit from the illicit trade of this endangered species.”
Totoaba macdonaldi is the largest species in its genus, which includes California white sea bass and corvina. It can grow to more than 6 feet in length, weigh up to 220 pounds, and can live up to 25 years. Totoaba – pronounced Toe-TWAH-bah - are endemic only to the Gulf of California, the narrow inlet between Baja California and Mexico’s mainland (also called the Sea of Cortez). This fish can be identified by its dusky silver color, elongated body, sharp snout, a projecting lower jaw, and a slightly convex tail.
During their winter migration, schools of adult Totoaba travel northward along the east coast of the Gulf of California to the Colorado River delta, where they remain for weeks before spawning in the spring. The Totoaba’s spawning season runs from approximately March to May each year. During this time, Totoaba travel to the shallower waters at the mouth of the Colorado River, making them vulnerable to commercial and sport fishermen.
While the Totoaba were once abundant in the Gulf of California, and even at one point constituted the second most important commercial fish for Mexico, their populations have declined drastically due to overfishing, pollution and diversion of waters from the Colorado River.
The bladders are removed from the fish, dried, and often exported from Mexico to other countries. In some instances, the fish are taken from the Colorado River, carved open so their swim bladders can be removed, and discarded on the shores.
The Totoaba was included in the most protected list of species covered by the Convention on International Trade in Endangered Species (CITES, Appendix I) in 1977, and was listed as endangered under the Endangered Species Act in 1979. Mexico included it on its list of species In Danger of Extinction in 1994. Both Mexico and the United States are signatories to CITES. It is a violation of law in both countries to trade in Totoaba or any part of a Totoaba.
Despite the protection, the species has shown minimal recovery. Unique biological traits, such as its limited geographic range and vulnerability during spawning, along with external pressures of habitat degradation and overfishing, have pushed the species to the brink of extinction.
The U.S./Mexico ports of entry closest to the Sea of Cortez are in Calexico and Andrade, California and San Luis, Arizona. During the period from February 16 to April 13, 2013, border inspectors in Calexico have seized approximately 483 pounds of Totoaba, representing the swim bladders of over 500 endangered fish.
Other Totoaba smuggling cases since February:
-Defendant Oi “Sean” Chung is charged with smuggling 11 swim bladders into the U.S. on February 27th and 30th.
-According to a complaint, defendant Anthony Sanchez Bueno drove into the United States from Mexico on March 30 with three coolers which contained a top layer of fish fillets, concealing 170 Totoaba swim bladders (225 lbs). Only the fish fillets were declared. The swim bladders measured approximately 18 inches in length, which corresponds to a fish size of at least four feet in length. The complaint alleged that undercover agents delivered the coolers to defendant Jason Xie, who was waiting in a hotel parking lot in Calexico. At the time of delivery, Xie acknowledged that the swim bladders were Totoaba. After advisement of his Constitutional rights, Xie stated that he had purchased an earlier load of swim bladders from the same individual in February, and paid $1,500-$1,800 per swim bladder, and there were approximately 100. A subsequent indictment of Xie and Sanchez seeks to forfeit $350,000 in proceeds from the sale of Totoaba.
-On April 1, a defendant in another unrelated case, Raquel Castaneda, attempted to smuggle 28 Totoaba swim bladders into the U.S., but was thwarted by inspectors, according to court documents.
-Two defendants whose names are not being released because they are still at large.
Criminal Case No. 13MJ1556
DEFENDANTS
Song Shen ZhenSUMMARY OF CHARGES
Smuggling, in Violation of Title 18, United States Code, Section 545. Maximum Penalties: 20 years in custody, $250,000 fine, supervised release of up to 3 years, $100 special assessment.Unlawful Importation of Wildlife, in Violation of Title 16, United States Code, Sections 3372 and 3373 Maximum Penalties: 5 years in custody and $250,000 fine, $100 special assessment.
Criminal Case No. 13MJ1482
DEFENDANTS
Oi “Sean” ChungSUMARY OF CHARGES
Smuggling, in Violation of Title 18, United States Code, Section 545. Maximum Penalties: 20 years in custody, $250,000 fine, supervised release of up to 3 years, $100 special assessment.Unlawful Importation of Wildlife, in Violation of Title 16, United States Code, Sections 3372 and 3373 Maximum Penalties: 5 years in custody and $250,000 fine, $100 special assessment.
Criminal Case No. 13CR1311-CAB
DEFENDANTS
Jason Jin Shun Xie
Anthony Sanchez BuenoSUMMARY OF CHARGES
Conspiracy, in Violation of Title 18, United States Code, Section 371. Maximum Penalties: 5 years in custody and/or $250,000 fine, $100 special assessment.Smuggling, in Violation of Title 18, United States Code, Section 545. Maximum Penalties: 20 years in custody, $250,000 fine, supervised release of up to 3 years, $100 special assessment.
Unlawful Importation of Wildlife, in Violation of Title 16, United States Code, Sections 3372 and 3373 Maximum Penalties: 5 years in custody and/or $250,000 fine, $100 special assessment.
Forfeiture, in Violation of Title 18, United States Code, Section 982.
Criminal Case No. 13mj8242
DEFENDANTS
Raquel CastanedaSUMARY OF CHARGES
Smuggling, in Violation of Title 18, United States Code, Section 545. Maximum Penalties: 20 years in custody, $250,000 fine, supervised release of up to 3 years, $100 special assessment.Unlawful Importation of Wildlife, in Violation of Title 16, United States Code, Sections 3372 and 3373 Maximum Penalties: 5 years in custody and $250,000 fine, $100 special assessment.
AGENCIES
U.S. Fish and Wildlife Service
Homeland Security Investigations
U.S. Customs and Border ProtectionOther Recent Cases of Environmental Significance in the Southern District of California:
-On August 5, 2012, Alberto SIERRA-Ochoa entered the U.S. through the Otay Mesa Port of Entry with approximately 77 pounds of raw iguana meat that was undeclared when he entered from Mexico. The U.S. Attorney’s Office of the Southern District charged Sierra-Ochoa with one count of smuggling. Sierra-Ochoa pled guilty to that charge.
-On June 6, 2011, Eliodor SORIA-Fonseca illegally imported approximately 159 pounds of iguana meat from Mexico through the Otay Mesa Port of Entry. The iguana meat was found hidden inside coolers that SORIA-Fonseca declared to Customs and Border Protection officers as fish. SORIA-Fonseca was indicted for one count of smuggling and one count of violation of the Endangered Species Act. SORIA-Fonseca pled guilty to one count of smuggling on September 27, 2011 and was sentenced to two years of imprisonment, followed by three years of supervised release.
-On December 21, 2011, a 54-year-old female Mexican citizen entered the San Ysidro port of entry as a pedestrian and was asked to place her belongings through an x-ray machine. An agriculture specialist noticed that two of the woman’s bags had what appeared to be shark fins. A special agent with the National Oceanic and Atmospheric Administration (NOAA) responded to the port, took custody of 29 pounds of shark fins, and issued a citation to the woman for violation of the Lacey Act. Customs and Border Protection cancelled the woman’s visa and she was returned to Mexico.
An indictment or complaint itself is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Lynchburg Woman Sentenced on Theft of Government Property ChargesRead the Press Release
LYNCHBURG, VIRGINIA -- a 54-year-old Lynchburg woman, who previously pleaded guilty to hiding income from the Social Security Administration, was sentenced yesterday in the United States District Court for the Western District of Virginia in Lynchburg.
Teresa Gayle Helms, 54, previously waived her right to be indicted and pleaded guilty to one count of theft of government money. Yesterday in District Court, she was sentenced to six months incarceration and six months of home confinement. She was also ordered to pay restitution of $78,696 to the Social Security Administration, $1,124 to Medicaid and $24,759 to Medicare.
“Programs like Social Security, Medicaid and Medicare are important safety nets that protect the health and safety of many Americans,” United States Attorney Timothy J. Heaphy said today. “When criminals like Ms. Helms steal from these programs, this office will bring them to justice.”
Helms previously admitted to stealing more than $104,800 in public money by concealing the fact that she worked as the owner and manager of two Lynchburg-area Adult Erotica stores while receiving Social Security, Medicare and Medicaid benefits.
The investigation of the case was conducted by the Lynchburg Police Department, the Social Security Administration, the Department of Health and Human Services. Assistant United States Attorney Charlene Day is prosecuting the United States.
Lubbock Man Charged in Federal Complaint with Robbing Credit UnionRead the Press Release
LUBBOCK, Texas — Jeffrey Hensley, 42, of Lubbock, Texas, was arrested and charged in a federal criminal complaint with robbing the Alliance Federal Credit Union in Lubbock. Hensley is set for an initial appearance tomorrow morning in Amarillo, Texas, before United States Magistrate Judge Clinton Averitte. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the complaint filed, on September 14, 2012, Hensley entered the First United Bank in Lubbock and presented a note to the teller that stated, “DON’T MAKE ME SHOW MY WEAPON.” The teller gave the money to Hensley, who put the money in a black bank bag, and he exited the bank.
On December 8, 2012, Hensley entered the Plains Capital Bank in Lubbock and walked up to the teller carrying a dark-colored bank bag. He handed the teller a note that stated, “Fill the bag with all the money in the drawer – if I have to show my weapon i will use it – you have 15 seconds!!” The teller handed Hensley a stack of bills and he took the cash and exited the bank.
On February 13, 2013, Hensley entered the Alliance Federal Credit Union in Lubbock, walked up to the teller and handed the teller a note and a pink-colored small cosmetic bag. The teller handed the bills to Hensley and he exited the bank. He was observed by a witness driving out of the bank parking lot in a small to mid-size white sport-utility vehicle.
On February 14, 2013, law enforcement authorities received a tip that an individual matching the description of the bank robber was named Jeff, and that he lived in an apartment at 1907 66th Street in Lubbock and drove a white sport-utility vehicle. Another tip was received on March 6, 2013, from an individual that stated the bank robbery suspect was named Jeffrey and that he drove a white four-door older model Toyota 4 Runner and lived in a house at 8608 Avenue X. A subsequent investigation revealed that Hensley resided in an apartment at 1907 66th street before moving to 8608 Avenue X. On April 22, 2013, a federal search warrant was executed at Hensley’s residence and he was arrested. Afterwards, according to the complaint, Hensley admitted to robbing the three banks in Lubbock.
A federal complaint is a written statement of the essential facts of the offenses charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. If convicted of this offense, however, Hensley faces a maximum statutory penalty of not more than 20 years in federal prison, and a $250,000 fine. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment.
This case is being investigated by the Federal Bureau of Investigation, the Texas Department of Public Safety, the Lubbock Police Department, and the Lubbock County Sheriff’s Office. Assistant U.S. Attorney Jeffrey Haag, of the U.S. Attorney’s Office in Lubbock, Texas, is in charge of the prosecution.
Louisville Fugitive and Former Owner of Jet Medical Supplies Charged with Health Care Fraud and Wire FraudRead the Press Release
– Added To Most Wanted List
LOUISVILLE, Ky. – The former owner of Jet Medical Supplies, LLC, was charged by a federal grand jury in Louisville, Kentucky, on five counts of wire fraud, five counts of health care fraud, and ordered to forfeit all property and gross proceeds derived from the offenses, announced David J. Hale, United States Attorney for the Western District of Kentucky. Jorge Jesus Cubillo Fernandez, a fugitive from the law, also, was added to the U.S. Department of Health and Human Services, Office of Inspector General’s Most Wanted Fugitives list.
According to the April 17, 2013 indictment, Fernandez, age 43, purchased Jet Medical on May 27, 2010. Jet Medical was a durable medical equipment supply company located at 12700 Shelbyville Road in Louisville. After purchasing the company, Fernandez began submitting claims to Medicare for payment. The indictment alleges that, from May 2010 until at least February 2011, Fernandez fraudulently requested payment from Medicare, via a carrier, and payment was received via electronic funds transfers from Medicare for items, benefits, services, and products that were never provided.
The investigation revealed that a number of billings were submitted by Jet Medical for beneficiaries whose unique Medicare beneficiary number had been compromised. The majority of claims submitted by Jet Medical allegedly used a unique beneficiary number, which had been associated with fraud by another provider. Further, the investigation revealed that Jet Medical, through Fernandez, billed for items, benefits, products, supplies, or services purportedly provided to beneficiaries located outside Kentucky. However, interviews with the Medicare beneficiaries determined that they did not receive the items or services for which Jet Medical had billed Medicare.
If convicted at trial, Fernandez faces a maximum sentence of 150 years in prison, a fine of $2,500,000 and three years of supervised release.
This case is being prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb and is being investigated by the U.S. Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation.
During Fiscal Year 2011, health care fraud enforcement actions by the Justice Department and HHS recovered nearly $4.1 billion in cases involving fraud on federal health care programs. The OIG Most Wanted Fugitives Web site continues to garner national and international attention and greatly assists in helping to capture fugitives charged with defrauding Federal health care programs and stealing millions of taxpayer dollars. The Most Wanted Fugitives Web site features an online tip form and a hotline number for individuals to report fugitive-related information to OIG in English or Spanish, 24 hours a day, 365 days a year. The Most Wanted Fugitives list can be accessed at https://oig.hhs.gov/fraud/fugitives.
Local Priest Indicted on Federal Child Pornography ChargesRead the Press Release
St. Louis, MO - A federal grand jury returned an indictment late this afternoon charging FATHER WILLIAM F. VATTEROTT, of St. Louis, Missouri, with possession of child pornography between June 2010 and June 2011. He is expected to appear in federal court to answer the indictment later in the week or early next week.
U.S. Attorney Richard Callahan noted that the St. Louis Archdiocese cooperated with the investigation.
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.
If convicted, this charge carries a maximum penalty of ten 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 Missouri Internet Crimes Against Children Task Force and an investigator for the U.S. Attorney’s Office. Assistant United States Attorney Rob Livergood is handling the case for the U.S. Attorney's Office.Local Man Pleads Guilty to Oil Spill FraudRead the Press Release
PENSACOLA, FLORIDA – Arturo L. Molina, 35, of the Fort Walton Beach area, pled guilty today to a single count federal indictment charging him with wire fraud in connection with claims filed related to the Gulf of Mexico oil spill. The guilty plea was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
As a part of the plea, Molina admitted to electronically submitting a Gulf Coast Claims Facility (GCCF) form to obtain funds that he claimed were lost due to the Deepwater Horizon oil rig spill in the Gulf of Mexico. The GCCF was tasked with receiving and processing all claims by individuals and businesses impacted by the Deepwater Horizon spill. To seek payment from the GCCF for damages incurred as a result of the oil spill, an individual or business was required to complete a GCCF Claim Form. Molina originally claimed he suffered $14,400.00 in lost earnings as an employee for a construction company in Fort Walton Beach, Florida.
In support of his false claim, Molina provided documents to the GCCF. His submissions included what purported to be valid paychecks from “A & M Professional Framing, Inc.” Molina also submitted to the GCCF a Full Review Final Payment form for a loss he claimed to have incurred in the amount of $19,800.00. Molina submitted W-2 forms and a partial 1040 U.S. Individual Income Tax Return form for 2010. These forms claimed that Molina earned business income, yet there were no supporting documents attached and they did not appear to be fully executed. Based on these false claims, the GCCF made payment to Arturo L. Molina in the amount of $13,900.00.
Molina was eventually interviewed by investigators regarding his GCCF claims. He admitted he was paid by “A & M Professional Framing, Inc.” only in cash, which contradicted the paychecks submitted with his original claim. Further, he conceded that he was not a legal resident of the United States and did not have a permit to lawfully work in this country. In reality, the investigation revealed that none of the paychecks submitted with Molina’s claim were ever actually issued to him from the bank account provided in his claim. Furthermore, the W-2 forms submitted contained multiple social security numbers and, pursuant to review by the Social Security Administration’s Office of the Inspector General, they are not legitimately linked to Molina. The tax forms submitted by Molina in support of the claim were also fraudulent.Sentencing for Molina is set before Chief United States District Judge M. Casey Rodgers on July 5, 2013, at 9:00 a.m. Molina faces up to twenty years imprisonment, three years of supervised release, and up to a $250,000 fine for this wire fraud conviction.
The indictment results from an investigation by agents of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Assistant U.S. Attorney David L. Goldberg is prosecuting the case.
Local Man Pleads Guilty in Welfare Fraud SchemeRead the Press Release
PITTSBURGH, Pa. - A Pittsburgh-area resident pleaded guilty in federal court to a charge of mail fraud, United States Attorney David J. Hickton announced today.
Mahmoud Al-Rifai, 43, pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that from on or about Jan. 12, 2012, and continuing to on or about July 25, 2012, Al-Rifai filed a fraudulent online application with the Pennsylvania Department of Public Welfare which resulted in the receipt of benefits to which he was not entitled.
Judge Schwab scheduled sentencing for Aug. 22, 2013. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense(s) and the criminal history, if any, of the defendant.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Mahmoud Al-Rifai.
Little Eagle Woman Pleads Guilty to Assault ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that Emily Rose Yellow Earrings, age 49, of Little Eagle, South Dakota appeared before U.S. Magistrate William D. Gerdes on April 19, 2013 and pled guilty to a Superseding Information that charged her with Assault By Striking, Beating and Wounding and Simple Assault. The maximum penalty on each count upon conviction is 6 months imprisonment, a $5,000 fine or both, and a $10 assessment. Restitution may also be ordered.
The conviction stems from an incident during the early morning hours of March 6, 2010 when the Defendant was attending a social gathering. Also present at the gathering was the victim and the Defendant's brother, who had previously been in a relationship. The Defendant became upset because she was under the mistaken belief that her brother and the victim had been in an argument earlier in the evening. The Defendant spoke to the victim, became enraged, and struck the victim on top of the head. A struggle ensued and the victim was again struck by the Defendant in the face.
The investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Troy Morley.
A presentence investigation was ordered and a sentencing date was set for July 10, 2013. The defendant was released on bond pending sentencing.
Legislator's Administrative Aide Pleads Guilty in FraudRead the Press Release
PHILADELPHIA - Lorraine Dispaldo, 58, of Philadelphia, pleaded guilty today to 30 counts of mail fraud, one count of wire fraud, one count of conspiracy to commit mail and wire fraud, four counts of filing false personal income tax returns, and one count of bankruptcy fraud. Dispaldo was charged in September 2012, along with then-Philadelphia Traffic Court Judge Robert Mulgrew, in an indictment alleging a scheme to defraud the Pennsylvania Department of Community and Economic Development (“DCED”). U.S. District Court Judge C. Darnell Jones, II, scheduled a sentencing hearing for September 16, 2013.
Dispaldo, who was an administrative aide to an unnamed Pennsylvania State Representative at the time, helped orchestrate a scheme to fraudulently receive and misuse Pennsylvania state grant funds awarded to non-profit groups. Between 1996 and 2008, the DCED awarded hundreds of thousands of dollars in grants to two community groups with which Mulgrew and Dispaldo were associated. DCED awarded approximately $397,000 in grants to the Community to Police Communications (“CPC”) to be used to purchase communications equipment for the police and to purchase materials to secure vacant lots and buildings for the protection of the police. Dispaldo signed the CPC grant contracts with DCED. Between 1997 and 2007 DCED also awarded approximately $460,000 in grants to the Friends of Dickinson Square (FDS”) to be used for the maintenance of Dickinson Square, at 4th and Tasker Streets, and the surrounding neighborhood. Dispaldo’s codefendant, Mulgrew, signed the FDS grant contracts with DCED.Dispaldo admitted that the grant contracts she submitted misrepresented how the funds would be used. She admitted that, instead of using grant funds exclusively for materials and equipment, as agreed, she instead paid tens of thousands of dollars in CPC and FDS grant funds to Mulgrew’s relatives and associates, including the teenage sons of his friends, and to the State Representative’s life-long friends. Dispaldo wrote over $104,000 of the almost $180,000 in impermissible payments made to persons for neighborhood revitalization “work.” While there were several decent gardens built, some trees planted and much landscaping material purchased, for the most part the activities undertaken primarily served as a “constituent service” clean-up-the-neighborhood-arm for the Representative’s benefit, easy money for favored friends and relatives, a summer make-work program to benefit the teenage sons of Mulgrew’s neighborhood and childhood friends, and some work on private property.
To mask the fact that grant funds were being used improperly, Dispaldo falsified her five
CPC “close out” reports sent to DCED by concealing most of the $104,000 in payments she made to persons from CPC funds and FDS funds during 2005 through September 2010. At times, Dispaldo submitted to DCED inaccurate IRS forms 1099, which document payments to persons, and at other times failed to prepare the forms, as required by law. Dispaldo also improperly paid almost $13,000 in CPC funds to the Representative’s office cleaner and improperly used $4,600 in CPC grant funds over the years to pay for her personal cell phone.To conceal the improper payments Dispaldo made to persons, she also submitted to DCED staggering numbers of duplicate phone invoices. For example, she sent in $91,500 worth of receipts in the close-out report for the third grant in the amount of $90,000, but $41,640 of those receipts were already sent in with either the first or second grant close-out reports. In the fourth close-out report, Dispaldo sent in $87,394 in receipts to satisfy the $50,000 grant, but $46,156 of those were previously sent to the state.
Dispaldo also pled guilty to filing false personal income tax returns for tax years 2006 through 2009, and pled guilty to one count of bankruptcy fraud for concealing her true income for 2008 and 2009 in her 2010 bankruptcy filing.
The case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Paul L. Gray.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Leaders in Broadway Document Mill Sentenced to PrisonRead the Press Release
Nine Defendants Operated a Document Mill in the 200 Block of South Broadway in Baltimore and Sold Thousands of Fraudulent Government Identification DocumentsBaltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Roberto Morales-Perez, a/k/a “Piza,” age 27, of Baltimore to 6 years in prison, followed by three years of supervised release for conspiring to a operate a document mill in the 200 block of South Broadway in Baltimore (the “Broadway Territory”), and selling fraudulent government identification documents manufactured as part of the conspiracy.
On April 23, 2013, Judge Quarles sentenced the brother of Morales-Perez, Ivan Altamirano-Perez, a/k/a “Elmer,” age 33, also of Baltimore, to 97 months in prison, followed by three years of supervised for conspiracy to commit fraud, fraud and misuse of immigration documents, social security fraud, and identification document fraud, in the same scheme.
Moralez-Perez and Altamirano-Perez are Mexican nationals in the country illegally and face deportation upon the completion of their sentences.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.
“Document fraud poses a severe threat to national security and puts the security of our communities at risk because it creates a vulnerability that may enable terrorists, criminals and illegal aliens to gain entry to and remain in the United States,” said HSI Baltimore Special Agent in Charge William Winter. “This investigation resulted in the dismantlement of a document fraud criminal organization based out of Maryland and the arrest of its leaders. Homeland Security Investigations will move aggressively to investigate and bring to justice those who potentially compromise the integrity of America's legal immigration system.”
According to their plea agreements and other court documents, responsibility for manufacturing identity documents – including permanent resident cards and social security cards - rotated among various individuals. From June 2008 through May 2010, Morales-Perez and Altamirano-Perez received the income from manufacturing the identity documents. Beginning in May 2010 and continuing until their arrests, the Perez brothers shared the territory and income with Miguel Reyes-Ontiveros (collectively, the Operators). The location of the manufacturing operation changed frequently to avoid detection.
In addition to manufacturing the documents, the Operators sold the documents themselves or through salesmen. The defendants used a group of at least 10 individuals to sell and distribute the fake identity documents. The documents were offered for sale and distributed in and around the 200 block of South Broadway in Baltimore.
According to their plea agreements, the salesmen solicited individuals in the Broadway territory to purchase the fake identification documents, either in person or by distributing business cards. The salesman would negotiate a price with the buyer, usually between $130 and $160, and obtain a picture and the information which the buyer wanted on the identification card. The salesman would then call in the order to the Operator who was working that week. The completed identity document would subsequently be provided to the salesman to be sold to the buyer.The defendants manufactured and sold 9,990 fraudulent identification documents for which they received approximately $1.68 million.
All nine defendants have pleaded guilty in this case. Miguel Reyes-Ontiveros, age 42, of Baltimore, one of the document mill operators, was previously sentenced to 57 months in prison. All of the defendants are in the U.S. illegally and face deportation upon the completion of their sentences.
A defendant in a related case, Victor Lopez Escamilla, was convicted by a jury of manufacturing and trafficking in counterfeit identity document, social security number cards, and immigration identity documents and was sentenced to 97 months in prison.
Anyone who has information on this type of fraud may contact ICE via its toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) or by visiting www.ice.gov/tips.
United States Attorney Rod J. Rosenstein praised HSI Baltimore and the Social Security Administration - Office of Inspector General for their work in the investigation, and thanked the U.S. State Department Diplomatic Security Service - Washington Field Office; the Maryland Motor Vehicle Administration - Investigation and Security Services Division; and the Baltimore County Police Department for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Tamera L. Fine and Judson T. Mihok, who prosecuted the case.
Kewa Pueblo Man Sentenced to Sixteen Years in Federal Prison for Second Degree Murder Conviction - Accessories after the Fact also Sentenced to Federal PrisonRead the Press Release
ALBUQUERQUE – Adrian Chavez, 24, a member and resident of Kewa Pueblo, was sentenced earlier today to 192 months in prison followed by five years of supervised release for his second degree murder conviction. His co-defendants, Derrick Chavez, 26, and Myron Garcia, 24, also members and residents of Kewa Pueblo, were sentenced for their convictions for being accessories after the fact to second degree murder. Myron Garcia was sentenced to five years in prison followed by three years of supervised release, and Derrick Chavez was sentenced to 66 months in prison followed by three years of supervised release.
The sentences were announced by U.S. Attorney Kenneth J. Gonzales, Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI, and DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services.
Adrian Chavez pleaded guilty in June 2012, to killing Nevin Garcia, a 20-year-old member of Kewa Pueblo, with a machete on Oct. 21, 2009. Also in June 2012, Derrick Chavez and Myron Garcia entered guilty pleas to being accessories after the fact and admitted helping Adrian Chavez bury Nevin Garcia’s remains.
According to court filings, the BIA learned about Nevin Garcia's murder when Adrian Chavez turned himself into the Kewa Pueblo Tribal Office on the night of Oct. 21, 2009. Investigation revealed that, earlier that evening, Adrian Chavez, Nevin Garcia, Derrick Chavez and Myron Garcia were drinking alcoholic beverages on a plot of land located within Kewa Pueblo that had a mobile home and camper trailer. While Derrick Garcia and Myron Chavez were inside the trailer, Adrian Chavez and Nevin Garcia began arguing. As Myron Garcia came out of the trailer, he saw Adrian Chavez strike Nevin Garcia in the face with a machete. Derrick Chavez came out of the trailer shortly thereafter. Nevin Garcia was unresponsive after he was struck with the machete. Derrick Chavez and Myron Garcia assisted Adrian Chavez in removing Nevin Garcia's clothing, wrapping him in a plastic tarp, and placing him in the back of a pickup truck. The three men then drove to a location a short distance from the mobile home and trailer and buried Nevin Garcia’s remains.
Adrian Chavez has been in federal custody since his arrest in Oct. 2009, and Myron Garcia and Derrick Chavez have been in federal custody since their arrests in Jan. 2009.
The case was investigated by the Albuquerque office of the FBI and the Southern Pueblos Agency of the BIA’s Office of Justice Services, and was prosecuted by Assistant U.S. Attorney Roberto D. Ortega.
Justice Department Releases Updated Protocol to Improve Standards for Responding to Rape and Sexual AssaultRead the Press Release
Attorney General Eric Holder today announced a revised version of the National Protocol for Sexual Assault Medical Forensic Examinations (SAFE Protocol, 2d.) The SAFE Protocol is a voluntary best practices guide to conducting sexual assault medical forensic examinations protocols. These suggested practices will promote high-quality, sensitive, and supportive exams for all victims of rape and sexual assault.
The SAFE Protocol is based on the latest scientific evidence and provides recommendations to standardize the quality of care for sexual assault victims throughout the country. By promoting thorough, sensitive evidence collection, the SAFE Protocol can improve the criminal justice response to rape and sexual assault to increase offender accountability.
“The SAFE protocol is crucial to our efforts to end sexual violence,” said Attorney General Holder. “It is our responsibility to ensure that victims feel comfortable coming forward. The SAFE Protocol helps us coordinate and improve our response when these courageous individuals do seek help from first responders including nurses, doctors, advocates, law enforcement, and prosecutors.”
In the nine years since the protocol was initially released in 2004, there have been substantial forensic medical advancements. This revised edition of the protocol maintains the same commitments of standardization and quality as the first SAFE Protocol, but is updated to reflect current technology. It also increases the emphasis on victim-centered care and includes additional information reflecting changes from the Violence Against Women Act of 2005.
Research shows that programs with trained examiners, such as Sexual Assault Nurse Examiners (SANEs) or Sexual Assault Forensic Examiners (SAFEs), using modern standards like those in the SAFE Protocol significantly increase evidence collection and investigation in sexual assault cases. Better evidence collection results in significantly higher prosecution rates, convictions, and guilty-pleas. The SAFE Protocol also helps SANEs and other medical professionals conduct exams that are sensitive, dignified, and reduce trauma.
“The SAFE Protocol helps ensure that victims will be cared for with compassion and respect when they turn to hospitals for help,” said Bea Hanson, Acting Director of the Office on Violence Against Women (OVW). “This not only improves outcomes for victims, it strengthens criminal cases. We are working to develop a comprehensive response to rape and sexual assault. One element of this is the President’s 2014 budget that includes $20 million to address the backlog of rape kits.”
The revised SAFE Protocol reflects the many important improvements that can help increase the quality of the services victims receive. The updated protocol has increased information on populations with special needs, such as victims with limited English proficiency; victims with disabilities; American Indian and Alaska Native victims; victims in the military; and lesbian, gay, bisexual or transgender victims. It also has expanded information on topics such as drug and alcohol facilitated sexual assault, pregnancy, confidentiality and alternative reporting procedures.
The SAFE Protocol is not a requirement for any federal grant funding. Adherence to the protocol is not mandatory with the exception of the recently released Department of Defense Instruction on Sexual Assault Prevention and Response Program Procedures. In addition, to comply with the department’s National Standards to Prevent, Detect and Response to Prison Rape, correctional facilities that are responsible for investigating allegations of sexual abuse in their facilities must use a protocol that is adapted from or otherwise based on the SAFE Protocol or similarly comprehensive and authoritative protocols developed after 2011.
According to the Centers for Disease Control and Prevention, one in five women and one in 71 men have been raped in their lifetimes, and nearly 1.3 million women in the U.S. are raped every year. More than one in four American Indian or Alaska Native women have been raped. Sexual assault and rape are pervasive crimes that threaten the safety of all communities. The SAFE Protocol is an important step forward in the Department of Justice’s efforts to end sexual violence.
OVW, a component of the U.S. Department of Justice, provides leadership in developing the nation’s capacity to reduce violence against women through the implementation of the Violence Against Women Act (VAWA) and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing 22 federal grant programs, OVW often undertakes initiatives in response to special needs identified by communities facing acute challenges. More information is available at www.ovw.usdoj.gov.
The SAFE Protocol is accessible at the National Criminal Justice Reference Service website at: www.ncjrs.gov/pdffiles1/ovw/241903.pdf.
Jury Convicts Joplin Man of Disaster Fraud in Failed Attempt to get Tornado BenefitsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Joplin, Mo., man has been convicted in federal court of disaster fraud and making false statements to FEMA in a failed attempt to get federal disaster benefits following the May 22, 2011 tornado.
Scott Bradley Olsen, 58, of Joplin, was found guilty on Tuesday, April 23, 2013 of both counts contained in an April 3, 2012 federal indictment.
Olsen originally filed for disaster assistance on May 26, 2011, claiming a Joplin residence was his secondary residence where he stored property that was damaged in the tornado, but FEMA found him ineligible for disaster assistance. After being denied, Olsen twice submitted documents to FEMA in an attempt to prove that the property was his primary residence. Olsen was again denied assistance on July 27, 2011.
Following the presentation of evidence, the jury in the U.S. District Court in Springfield, Mo., deliberated for less than two hours before returning the guilty verdicts to U.S. District Judge Dean Whipple, ending a trial that began Monday, April 22, 2013.
Under federal statutes, Olsen is subject to a sentence of up to 35 years in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the Department of Homeland Security-Office of Inspector General, the FBI and the Joplin, Mo., Police Department.
Disaster Fraud Hotline
Anyone with information about disaster fraud related to the Joplin tornado should call the National Center for Disaster Fraud hotline at 866-720-5721, the Joplin Police Department at 417-623-3131, or the FBI’s Joplin office at 417-206-5700.
Jury Convicts Columbia Man of Two ArsonsRead the Press Release
JEFFERSON CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was convicted in federal court today for two arsons that damaged a building on the Stephens College campus in Columbia and the Ellis Library at the University of Missouri–Columbia.
Christopher Curtis Kelley, 27, of Columbia, was found guilty of both counts contained in a June 27, 2012 federal indictment.
Evidence presented during the trial indicated that Kelley deliberately set fires at 10 different locations inside the Ellis Library, which is the main library at the University of Missouri, at approximately 3:30 a.m. on Sept. 10, 2011. Some of the fires didn’t take or caused minimal damage, while other fires caused significant damage. Kelley also vandalized property at the library, including computer monitors, security cameras and windows. Human feces and urine were found on top of one of the study desks. The overall cost to repair the damage to the library was estimated between $750,000 and $1 million.
Photos taken from the library’s security cameras were distributed to the media and the college community. Law enforcement officials received several telephone calls in response from individuals who identified Kelley. At about noon on the same day as the arson, Kelley turned himself in to the University of Missouri Police Department.
During the investigation into the Ellis Library arson, law enforcement officers recovered stolen computer equipment at Kelley’s residence that had been taken from Stephens College during an earlier arson on that campus.
Kelley was also convicted today of starting a fire in a classroom of the Audrey Webb Child Study Center on the Stephens College campus at approximately 4 a.m. on May 18, 2011. Firefighters responded to a small fire inside a classroom and heavy smoke in the building. There was moderate smoke damage in the basement area directly below the classroom.
Following the presentation of evidence, the jury in the U.S. District Court in Jefferson City, Mo., deliberated for two hours before returning the guilty verdict to U.S. District Judge Beth Phillips, ending a trial that began Monday, April 22, 2013.
Under federal statutes, Kelley is subject to a mandatory minimum sentence of five years in federal prison without parole on each of the two counts, up to 40 years in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the University of Missouri Police Department, the Columbia, Mo., Police Department, the Columbia, Mo., Fire Department, the Stephens College Security Department, the University of Missouri Ellis Library Security Department, the U.S. Department of Education and the Bureau of Alcohol, Tobacco, Firearms and Explosives.Jury Convicts Bay Area Man of Knowingly Receiving Stolen PropertyRead the Press Release
SAN FRANCISCO - Alexander Kosmin was convicted of one count of Receiving Stolen Property that had Traveled in Interstate Commerce by a federal jury yesterday, United States Attorney Melinda Haag announced. The guilty verdict followed a five day jury trial before U.S. District Court Judge Charles R. Breyer.
The evidence at trial showed that Kosmin, 23, formerly of San Jose, California, knowingly received stolen cellular telephones, including iPhones, that had been fraudulently ordered on AT&T and Verizon online customer accounts. The customer accounts were unlawfully accessed online. Orders in the names of other persons were placed on the accounts and shipped to locations that did not correspond with the addresses of the true customers on the accounts. In connection with the fraudulent orders, the defendant arranged to have the stolen cellular telephones sent to various hotels in the Bay Area from San Francisco to Santa Cruz. When Kosmin picked up the stolen cellular telephones he used numerous false names and presented false identity documents in those names. The jury found that the value of the stolen cellular telephones was $5,000 or more. After receiving the stolen cellular phones, Kosmin sent the phones to a co-conspirator in Russia, who has not yet been identified, or sold the cellular phones using Craigslist. After selling the stolen phones, Kosmin, using his name and false names, wired half of the proceeds back to his co-conspirator in Russia.
The investigation began after AT&T contacted the National Cyber Forensic Training Alliance (NCFTA) regarding fraudulent orders on customer accounts. The NCFTA referred the matter to the Federal Bureau of Investigation.
Kosmin was indicted by a federal grand jury on June 26, 2012. He was charged with one count of Conspiracy to Commit Wire Fraud and one count of Receiving Stolen Property that had Traveled in Interstate Commerce. Kosmin was acquitted, upon motion to the Court, of the Conspiracy to Commit Wire Fraud count in the indictment.
Kosmin was remanded into the custody of the United States Marshal following his conviction. The sentencing hearing in this matter is scheduled for July 10, 2013, before Judge Breyer in San Francisco. The maximum statutory penalty for Receiving Stolen Property that had Traveled in Interstate Commerce in violation of 18 U.S.C. § 2315 is 10 years, a fine of $250,000, 3 years supervised release, and restitution. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Michelle Kane and Denise Barton are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Paralegal Denise Oki and Legal Assistants Janice Pagsanjan, Rayneisha Booth, and Elizabeth Garcia. The prosecution is the result of a 7 month investigation by the Federal Bureau of Investigation
(Kosmin Filed indictment )
Individuals Charged with Unlawful Sale of Cocaine Base, Cocaine, Heroin and OxycodoneRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has indicted Nathaniel Clark, 29, Tommy Eugene Clark, a/k/a Boo, 26, Kayla Renee Combs, 23, all of Niagara Falls, and Raysean Clark, a/k/a TP, a/k/a Tadpole, 27, on charges of conspiracy to possess with intent to distribute, and to distribute cocaine base, cocaine, heroin and oxycodone. The charges carry a mandatory minimum sentence of five years in prison, a maximum penalty of 40, a fine of $5,000,000, or both.
Assistant U.S. Attorney Mary C. Baumgarten, who is handling the case, stated that according to the indictment, the charges stem from an investigation into the trafficking of cocaine and cocaine base in the Western New York area from the Cleveland, Ohio area. The defendants sold these controlled substances in the Cities of North Tonawanda, Niagara Falls, Lockport, and Buffalo, and other areas within Erie and Niagara Counties.
The defendants made an initial appearance this afternoon before U.S. Magistrate Judge Leslie G. Foschio. Defendants Nathaniel Clark, Tommy Eugene Clark and Raysean Clark are being detained pending further proceedings. Kayla Renee Combs was released on conditions.
The indictment is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, the Niagara County Drug Task Force and the Niagara County Sheriff's Department, under the direction of Sheriff James Voutour, and the North Tonawanda Police Department, under the direction of Chief Randy Szukala.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Indictment: Airman at McConnell Claimed She Was Commuting from ArizonaRead the Press Release
WICHITA, KAN. – A former Kansas Air National Guard senior airman who was assigned to McConnell Air Force Base in Wichita is charged with fraudulently collecting more than $50,000 in travel reimbursements by claiming she lived in Arizona while she was working at McConnell, U.S. Attorney Barry Grissom said today.
Eledria J. Bradley, 28, Wichita, Kan., is charged with one count of wire fraud. An indictment alleges that Bradley was a member of the Kansas Air National Guard and she lived in Wichita in February 2009 when she received orders to prepare for deployment with the U.S. Air Force effective April 11, 2009.
The indictment alleges Bradley accessed her file via virtual MPF, an online personnel system in which military members can access and change their personal information, and changed her residential address from Wichita to Chandler, Ariz. The change of address placed her outside the commuting distance for McConnell Air Force Base. As a result she received lodging and per diem benefits to which she was not entitled from April 11, 2009, to April 23, 2011, totaling $54,992.
If convicted, she faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. Air Force - OSI investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
OTHER INDICTMENTS
Oluwafunminiyi A. Adetunji, Wichita, Kan., is charged with four counts of mail fraud, four counts of wire fraud, five counts of aggravated identity theft, and one count of credit card fraud. The crimes are alleged to have occurred in 2010 and 2011 in Sedgwick County, Kan.
The indictment alleges Adetunji fraudulently used names and credit card numbers belonging to other people to purchase a big screen television, a laptop computer and gold coins.
Upon conviction, the crimes carry the following penalties: Mail fraud: A maximum penalty of 20 years in federal prison and a fine up to $250,000.
Wire fraud: A maximum penalty of 20 years in federal prison and a fine up to $250,000.
Aggravated identity theft: Two years consecutive to the underlying sentence on each count.
Credit card fraud: A maximum penalty of 10 years and a fine up to $250,000.The U.S. Secret Service investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Michael M. Smith, 24, Wichita, Kan., is charged with two counts of unlawful possession of a firearm and one count of unlawful possession of ammunition after a felony conviction, one count of unlawful possession of a sawed-off shotgun, one count of possession with intent to distribute marijuana and one count of unlawful possession of a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred in March 2013 in Sedgwick County, Kan.
Upon conviction, the crimes carry the following penalties: Unlawful possession of a firearm: A maximum penalty of 10 years in federal prison and a fine up to $250,000.
Unlawful possession of ammunition: A maximum penalty of 10 years and a fine up to $250,000.
Unlawful possession of a sawed-off shotgun: A maximum penalty of 10 years and a fine up to $10,000.
Possession with intent to distribute marijuana: A maximum penalty of five years and a fine up to $250,000.
Unlawful possession of a firearm in furtherance of drug trafficking: A penalty of not less than five years and not more than life and a fine up to $250,000.The Wichita Police Department investigated. Assistant U.S. Attorney David Lind is prosecuting.
Edward Garcia, Jr., 31, is charged with one count of unlawful possession of a firearm and one count of unlawful possession of ammunition after a felony conviction. The crimes are alleged to have occurred March 13, 2013, in Finney County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count. The Garden City Police Department investigated. Assistant U.S. Attorney David Lind is prosecuting.Justin L. Wolke, 30, is charged with one count of unlawful possession of a firearm after a felony conviction and one count of unlawful possession of a firearm by a user of controlled substances. The crimes are alleged to have occurred Jan. 9, 2013, in Hutchinson, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count. The Hutchinson Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Tori Scieneaux, 43, Montclair, Calif., is charged with one count of possession with intent to distribute approximately 2.5 kilograms of heroin. The crime is alleged to have occurred April 15, 2013, in Trego County, Kan.
If convicted, he faces a penalty of not less than 10 years and a fine up to $4 million. The Kansas Highway Patrol and the Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is investigating.
Shawn Steele, 53, Wichita, Kan., is charged with one count of possession with intent to distribute crack cocaine and one count of possession with intent to distribute cocaine. The crimes are alleged to have occurred in 2011 and 2012 in Sedgwick County, Kan.
If convicted, he faces a penalty of not less than five years and not more than 40 years and a fine up to $5 million on the crack cocaine charge, and a maximum penalty of 20 years and a fine up to $1 million on the cocaine charge. The Wichita Police Department and the Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Ryan O’Malley, 26, Pittsburg, Kan., and Alexandria Pierce, 23, Pittsburg, Kan., are charged with one count of possession with intent to distribute approximately 53.5 pounds of marijuana, and one count of unlawful possession of a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred Oct. 31, 2011, in Crawford County, Kan.
If convicted, they face a maximum penalty of five years in federal prison and a fine up to $250,000 on the marijuana charge, and a penalty of not less than five years and a fine up to $250,000 on the firearms charge. The Kansas Bureau of Investigation and the Crawford County Sheriff’s Office investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Darrin Walker, 48, Wichita, Kan., and Angela Johnson, 50, Wichita, Kan., are charged with one count of possession with intent to distribute crack cocaine and one count of possession with intent to distribute hydrocodone. In addition, Walker is charged with one count of unlawful possession of a firearm in furtherance of a drug trafficking crime and one count of unlawful possession of a firearm after a felony conviction. The crimes are alleged to have occurred Feb. 15, 2013, in Sedgwick County, Kan.
Upon conviction, the crimes carry the following penalties: Possession with intent to distribute crack cocaine: Not less than five years and not more than 40 years and a fine up to $2 million.
Unlawful possession of a firearm in furtherance of a drug trafficking crime: Not less than five years and a fine up to $250,000.
Unlawful possession of a firearm after a felony conviction: A maximum penalty of 10 years and a fine up to $250,000.
Possession with intent to distribute hydrocodone: A maximum penalty of 10 years and a fine up to $500,000.The Wichita Police Department investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Fidel Guerra-Monjaraz, 42, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found April 15, 2013, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison without parole and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.Ideal Man Indicted for Failure to Register as A Sex Offender and False StatementRead the Press Release
United States Attorney Brendan V. Johnson announced that an Ideal, South Dakota man has been indicted by a federal grand jury for Failure to Register as a Sex Offender and False Statement.
Loren Running Horse, age 42, was indicted by a federal grand jury on April 12, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 22, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to 10 years’ in custody, a $250,000 fine, or both; life of supervised release; and a $100 Special Assessment. Restitution may also be ordered.
The charge is merely an accusation and Running Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshal Service and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
Running Horse was remanded to the custody of the U.S. Marshal pending trial. A trial date has not been set.
Georgia Man Indicted for Tax Fraud and Identity TheftRead the Press Release
Defendant Filed Over 5,000 False Claims for “Stimulus Money”
ATLANTA – Mauricio Warner has been indicted by a federal grand jury for stealing the identities of thousands of individuals to file federal tax returns claiming over $6 million in bogus refunds.
“This defendant and identity thieves like him steal millions in taxpayer dollars every year,” said United States Attorney Sally Quillian Yates. “We have seen a decided trend in identity thieves turning to phony IRS refunds instead of more traditional credit card fraud schemes, and have allocated increased resources to reverse this trend. Our office will continue to protect the citizens of this district, bring fraudsters to justice, and return the stolen money to the U.S. Treasury.”
“Identity thieves are becoming more devious, creative, and conniving,” stated Veronica Hyman-Pillot, Special Agent in Charge, IRS-Criminal Investigation. “They steal our identities, steal government money, and prey upon innocent citizens. These criminals must be and will continue to be pursued in order to obtain justice for the victims as well as justice for our nation.”
According to United States Attorney Yates, the charges and other information presented in court: From approximately January 2011 to April 2012, Warner, 37, of Smyrna, Ga., allegedly filed over 5,000 false tax returns using the names and social security numbers of unsuspecting victims. Victims were told they could submit an application for a “stimulus payment” or “Free Government Money” by providing their names and social security numbers. It is alleged that in some instances, he used toll-free telephone numbers to collect victims’ personal identifying information. Warner then used the victims’ names and social security numbers to claim millions of dollars in fraudulent refunds. The victims did not know tax returns were being filed in their names.
Additionally, the United States has seized seven bank accounts controlled by Warner that contain $4,185,455.31 in funds believed to be derived from or involved in this scheme.
Warner was arraigned in front of United States Magistrate Judge Linda T. Walker yesterday on the charges. The indictment charges 16 counts of wire fraud, 16 counts of aggravated identity theft, 16 counts of filing false claims, and 2 counts of money laundering. Each wire fraud count carries a maximum sentence of 20 years in prison, each false claim count carries a maximum sentence of 5 years in prison, and each money laundering count carries a maximum sentence of 10 years in prison. The aggravated identity theft charges carry at least one mandatory two-year consecutive sentence to any other sentence imposed. Each count also carries a fine of up to $250,000. The United States is also seeking the forfeiture of all funds derived from or involved in this scheme.
In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
This case is being investigated by Special Agents of the Internal Revenue Service – Criminal Investigation. If you believe you may be a victim of tax return-related identity theft please contact the IRS Identity Protection Specialized Unit at 800-908-4490, extension 245 (Mon. - Fri., 7 a.m. - 7 p.m. local time).
Assistant United States Attorneys Stephen H. McClain and Thomas J. Krepp are prosecuting the case.
Members of the public are reminded that the indictment contains only allegations. A defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.