Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
23 April 2013
Fort McDowell Yavapai Man Sentenced to Federal Prison for Sexual AbuseRead the Press Release
PHOENIX --- On April 22, 2013, Arthur Victor Smith, 20, of Peach Springs, Ariz., was sentenced by U.S. District Judge G. Murray Snow to 140 months imprisonment, followed by lifetime supervised release. Smith, a Fort McDowell Yavapai Nation member, pleaded guilty on Feb. 5, 2013, to sexual abuse.
Smith was charged by indictment with one count of aggravated sexual abuse of a minor pursuant to 18 U.S.C. § 2241(c). According to the plea agreement, the defendant sexually abused a minor female, age 14, and the sexual abuse occurred on the Hualapai Nation Indian Reservation.
The investigation in this case was conducted by the Hualapai Nation Police Department and the Federal Bureau of Investigation. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-11-8189-PCT-GMS
RELEASE NUMBER: 2013-032_SmithFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Destin Man Nets Federal Prison for Felony Election OffenseRead the Press Release
PENSACOLA, FLORIDA – Jay Odom, 56, of Destin, was sentenced today by Senior U.S. District Judge Lacey A. Collier to six months in federal prison for his conviction on one count of causing a presidential campaign committee to make a false statement to the Federal Election Commission (FEC). Additionally, Judge Collier ordered Odom to pay a fine of $46,000 and a Special Monetary Assessment of $100 for the felony conviction. The sentencing was announced this afternoon by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Robert O. Davis, Acting United States Attorney for the Northern District of Florida.
According to court documents, in approximately December 2007, Odom directly and indirectly solicited employees of his business entities and their family members to each make the maximum allowable contributions to the authorized campaign committee of a presidential candidate. The employees were encouraged to make these donations with the understanding that Odom would advance funds to or reimburse these individuals for their contributions. During his guilty plea on February 12, 2013, Odom admitted to both knowing that this activity was illegal and intending to conceal the true source and amount of the campaign contributions.
In 2007, Odom directly or indirectly used personal funds to reimburse individual contributions to the authorized campaign committee of the presidential candidate for a total of $23,000. As a result of this scheme, Odom intentionally caused the presidential candidate’s authorized campaign committee to file a report with the FEC that falsely stated that 10 individual donors had made federal campaign contributions when in fact each contribution was made by Odom.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Randall J. Hensel and Trial Attorney Brian K. Kidd of the Criminal Division’s Public Integrity Section.
Defendant Charged in White Plains Federal Court with Bank Fraud and Stealing Nearly Half A Million Dollars from the IRSRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Toni Weirauch, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), today announced the arrest of MELANIE FERREIRA for engaging in a series of frauds, which included cheating the Internal Revenue Service (“IRS”) out of nearly half a million dollars, and perpetrating a bank fraud scheme. FERREIRA was arrested by FBI and IRS agents this morning at her residence in Dutchess County, New York, and was presented this afternoon before U.S. Magistrate Judge Lisa M. Smith in White Plains federal court.
U.S. Attorney Preet Bharara said: “As alleged, Melanie Ferreira thumbed her nose at the IRS, stealing hundreds of thousands of dollars in refunds to which she was not entitled, and forged a check to satisfy a debt. We enjoy many rights and privileges in this country but not among them is the right to enjoy the fruits of law-abiding taxpayers’ money while evading the tax laws and defrauding the government and thereby your fellow citizens.”
FBI Assistant Director-in-Charge George Venizelos said: “As alleged, the defendant committed tax fraud that was as unsophisticated as it was audacious. She simply lied about the amount of taxes already paid in 2008. The method of Ferreira’s alleged bank fraud may be tied to her questioning the legitimacy of the government. Regardless, she apparently had no qualms stealing from the treasury.”
IRS-CI Special Agent-in-Charge Toni Weirauch said: “The privilege of living in the United States carries certain responsibilities, one of which is that one must pay his or her fair share of taxes. Filing a false claim with the IRS is stealing, not only from the U.S. Treasury, but from all law-abiding taxpayers. Whether through claiming fictitious deductions, exemptions or withholding amounts, the charge is serious, and so are the consequences.”
According to the allegations in the Complaint unsealed today in White Plains federal
court:
On October 15, 2009, FERREIRA filed a U.S. Individual Income Tax Return, Form 1040, for the year 2008 (“2008 Return”). In her 2008 Return, she falsely reported interest income of $661,600 from three different banks. She then falsely claimed that she had paid taxes in the amount of $661,536 to the IRS for Tax Year 2008. On that basis, she claimed a refund of $440,924. In reality, she actually earned only $17 in interest income from those three banks. Furthermore, contrary to her claim on her 2008 Return that she had already paid $661,536 in federal taxes, she actually paid only $236.
On October 23, 2009, the IRS wired $440,924 to FERREIRA’s bank account.
The following spring, on April 15, 2010, FERREIRA tried to carry out the same type of scheme when she filed her Form 1040 for the year 2009, but this time, the IRS rejected her refund request.
In addition, FERREIRA also perpetrated a bank fraud scheme against the Bank of America (“BOA”), which was the bank that held the mortgage for her house in Dutchess County, New York (“House 1”). In May 2010, she caused a forged cashier’s check for $316,966.05, purporting to be drawn on the Federal Reserve Bank of Cleveland, Ohio (“Check 1”), to be sent to BOA in satisfaction of the mortgage on House 1. Believing that Check 1 was legitimate, BOA filed a satisfaction of mortgage with the Dutchess County Clerk’s Office. BOA subsequently determined that Check 1 was fraudulent and filed suit in New York State Supreme Court in order to have the mortgage reinstated.
Similarly, on June 2, 2012, FERREIRA sent a check in the amount of $305,000 (“Check 2”) to BOA, purporting to pay off the balance of her mortgage from BOA on House 1. When BOA tried to negotiate Check 2, it was returned since the originating bank account had been closed. On the memo line of Check 2, FERREIRA wrote, in red ink, “FOR DISCHARGE OF DEBT EFT ONLY.” On the back of the check, she wrote several lines in a different color of ink, including the following: “NOT FOR DEPOSIT; EFT ONLY; FOR DISCHARGE OF DEBT.”
FERREIRA’s scheme – sometimes known as an electronic funds transfer or “EFT” scheme – is a scheme often used by adherents to the Sovereign Citizens Movement, a group comprised of individuals who, although they reside in the United States, assert the position that they do not have to answer to any government authority, including courts, taxing entities, motor vehicle departments or law enforcement.
FERREIRA, 60, of Lagrangeville, New York, is charged with one count of wire fraud, one count of filing false claims with the IRS, and one count of bank fraud. She faces a maximum sentence of 55 years in prison and a maximum fine of $1,000,000, or twice the gross gain or gross loss from the offense.
Mr. Bharara praised the outstanding investigative work of the FBI and the IRS.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorney Jason P.W. Halperin is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Melanie Ferreira Complaint
Dallas-Area Lawyer Pleads Guilty to Felony Offense of Covering up Bank FraudRead the Press Release
DALLAS — Jerry Goh, 50, a resident of Allen, Texas, appeared in federal court this morning before U.S. Magistrate Judge Irma C. Ramirez and pleaded guilty to a superseding information charging him with one count of misprision of a felony, stemming from his involvement in a loan fraud scheme in 2007. Goh, a lawyer with offices in the Dallas-Fort Worth metroplex, faces a maximum statutory penalty of three years in federal prison, a $250,000 fine and restitution. Sentencing is set for August 12, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Two defendants also charged in the case, Plano, Texas, residents Vathany Theng and Lina Ma, have pleaded guilty to their roles in the fraud and are awaiting sentencing. According to documents filed in the case, Goh, acting in his capacity as the escrow officer on the loan, and thus with control of the loan proceeds, concealed from the lender, Prosper Bank, the fraudulent release of $498,720 of loan proceeds to provide funds for a $431,000 down payment. Goh wired $498,720 of lender Prosper Bank’s funds from an escrow account, knowing that these seller proceeds funds would later be used as the source of borrower Lina Ma’s down payment on her loan from Prosper Bank.
This case was prosecuted in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit http://www.stopfraud.gov/.
The case was investigated by the U.S. Small Business Administration – Office of the Inspector General and the FBI. Assistant U.S. Attorney David L. Jarvis is in charge of the prosecution.
Citizen of Jamaica Sentenced to Two Years in Prison for Illegally Reentering the U.S. After DeportationRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that HAROLD ANTHONY SOLTAU, 43, a citizen of Jamaica last residing in Bridgeport, was sentenced today by Senior United States District Judge Alfred V. Covello in Hartford to 24 months of imprisonment for illegally reentering the United States after being deported.
According to court documents and statements made in court, SOLTAU was deported from the United States to Jamaica in June 1990 after he was convicted of a felony drug trafficking offense. He subsequently reentered the United States without first obtaining the consent of the Attorney General of the United States or his successor, the Secretary for the Department of Homeland Security, to reapply for admission into the United States.
SOLTAU has been detained since his arrest on July 31, 2012. On January 29, 2013, he pleaded guilty to one count of illegal reentry of a removed alien.
This case was investigated by U.S. Immigration and Customs Enforcement and was prosecuted by Assistant United States Attorney Felice M. Duffy.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Cherry Creek Man Convicted for Assaulting, Resisting or Impeding A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that Kaleb Earl Hollow Horn, age 25, of Cherry Creek, South Dakota appeared before U.S. District Judge Roberto A. Lange on April 16, 2013 and pled guilty to the Superseding Information that charged him with Assaulting, Resisting or Impeding a Federal Officer. The maximum penalty upon conviction is 8 years of custody, a $250,000 fine, or both; a $100 assessment; and restitution.
The conviction is the result of an incident that occurred in February 2012 when Hollow Horn assaulted, resisted or impeded a Cheyenne River Sioux Tribe police officer.
The investigation was conducted by the Cheyenne River Sioux Tribal Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Mikal Hanson.
A presentence investigation was ordered, and a sentencing date was set for July 8, 2013. Hollow Horn will report to the U.S. Marshals Service on June 3, 2013.
California Woman Pleads Guilty to Feeding Whales in Marine SanctuaryRead the Press Release
A California woman pleaded guilty to illegally feeding killer whales in the wild this Tuesday in federal court in San Jose, Calif., the Department of Justice Environment and Natural Resources Division and the U.S. Attorney’s Office for the Northern District of California announced.
Nancy Black of Monterey, Calif. pleaded guilty to one count of violating the Marine Mammal Protection Act (MMPA), specifically the MMPA’s feeding prohibition. The MMPA regulations make it a crime to feed marine mammals in the wild. The prohibition applies to commercial and recreational boaters, and applies to all species of marine mammals.
Killer whales (orcas) prey on gray whales in the Monterey Bay National Marine Sanctuary. On the occasions when orcas manage to kill a gray whale, the pod of orcas does not always eat all of the gray whale at once. Often, portions of the carcass, including strips and chunks of blubber (some over six feet in length and weighing over a hundred pounds), remain floating or semi-submerged after a kill. Orcas and sea birds feed on these chunks of blubber while they are still available in the area.
According to the factual basis of the plea agreement, on or about April 25, 2004, Black was on her boat in the Monterey Bay National Marine Sanctuary, when she and her assistants encountered a place where orcas had killed a gray whale calf. She was observing the orcas as they fed on pieces of gray whale blubber that were floating in the water. In an effort to facilitate their viewing, she or her crew grabbed the blubber, cut a hole through the corner of the blubber chunk, and ran a rope through the piece of the blubber. Shortly thereafter, they returned the blubber to the water and monitored the feeding behavior of the orcas as they ate the blubber off of the rope. Black and her crew repeated the process with the rope and other pieces of the blubber. In court papers, Black admitted that she did not have a permit that would have allowed her to engage in this conduct. She also admitted that on or about April 11, 2005, she was involved in a similar incident involving the collection of floating blubber and offering it to orcas utilizing the same rope method.
In a separate incident on or about Oct. 24, 2005, Nancy Black met with a sanctuary officer and a National Oceanic and Atmospheric Administration (NOAA) investigative agent at their offices in Monterey. The sanctuary officer was investigating a reported harassment of an endangered humpback whale earlier that month in the Monterey Bay National Marine Sanctuary. The interaction with the humpback whale was filmed by one of Black’s crewmembers. Before Oct. 24, the sanctuary officer had previously asked Black to provide the videotape of the humpback whale encounter.
Black voluntarily agreed to provide the videotape, but prior to doing so she edited the video footage to remove several minutes that included footage of the humpback whale between two vessels that belonged to Black’s whale watching business, among other footage, and sounds. Black did not tell the officer that she had edited the tape. In filed court papers, Black admitted that by not disclosing the editing of the video, she could have impeded or influenced NOAA's investigation into the humpback whale incident.
Sentencing in the case is set for Aug. 6, 2013.
The case was investigated by agents of the National Oceanic and Atmospheric Administration and the FBI with support from enforcement personnel from the Monterey Bay National Marine Sanctuary. The case was prosecuted by Christopher L. Hale of the Justice Department’s Environmental Crimes Section, Environment and Natural Resources Division, and Jeffrey Schenk of the U.S. Attorney’s Office in San Jose, California.
Related Materials:
Plea Agreement
Broward County Return Preparer Sentenced for Tax Fraud Scheme and Failing to File Personal Tax ReturnsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), announced today’s sentencing of defendant Vladimyr Jean Baptiste, 41, of Coral Springs, Florida. Baptiste was sentenced to 57 months in prison, to be followed by 3 years of supervised release. The defendant was also ordered to pay $331,459.49 in restitution to the Internal Revenue Service.
Baptiste previously pled guilty to a 76-count superseding indictment that charged him with 73 counts of aiding in the preparation and presentation to the Internal Revenue Service of false U.S. Individual Income Tax Returns, Forms 1040 and 1040A, for calendar years 2007 through 2010, in violation of Title 26, U.S.C., Section 7206(2); and three counts of failing to file personal income tax returns for calendar years 2008 through 2010, in violation of Title 26, U.S.C., Section 7203.
According to court documents, Baptiste operated Tax Plus in Pompano Beach, Florida and filed numerous false income tax returns for clients. These false returns claimed fraudulent statuses, wages, deductions, credits and expenses. Specifically, Baptiste admitted to: inflating earned income credits; encouraging clients to file separately with each individual claiming head of household although married, thereby obtaining additional tax credits; and giving various clients a fictitious $3,650 personal tax exemption for returns and allowances to lower their taxes. Baptiste also admitted that he has not filed his personal tax returns for the past five years.
Mr. Ferrer commended the investigative efforts of IRS-CID. The case is being prosecuted by Assistant U.S. Attorney Michael Walleisa.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Birmingham Man Sentenced to 20 Years in Prison for Ensley Pharmacy Armed RobberyRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Birmingham man to 20 years and one month in prison for a 2011 armed robbery of an Ensley pharmacy, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
U.S. District Judge Abdul K. Kallon sentenced WILLIE EDWARDS, 39, for robbing Moore’s Pharmacy on Ensley Avenue in Birmingham on July 30, 2011, and brandishing a gun during the robbery. Edwards pleaded guilty in January to the armed robbery involving controlled substances charge and to the charge of brandishing a gun during a crime of violence. The brandishing charge carries a mandatory seven-year prison sentence that must be served consecutively to any other sentence imposed for the crime.
“This defendant, and the co-defendants in this case, all endangered innocent people in their violent quest to steal one of the most commonly abused prescription substances in our communities -- hydrocodone,” Vance said. This type of violent criminal must be taken off the streets.”
Edwards was charged in the armed robbery along with ANTHONY YOUNG, 21, of Hueytown. Young’s case has been continued.
According to court documents, Edwards entered Moore’s Pharmacy with the other robber and ordered employees to lie down on the floor after a gun was brandished. Edwards and his accomplice took pills and cough syrup containing hydrocodone, a narcotic pain killer.
Edwards and Young were indicted in November, along with Edwards’ cousin, STERLING EDWARDS, 20, also of Birmingham. Sterling Edwards pleaded guilty in February to the Oct. 13, 2011, armed robbery of Campbell’s Pharmacy in Adamsville, and the March 13, 2012, armed robbery of Helena Hometown Pharmacy in Helena. Controlled substances were taken and guns were used in both robberies. Sterling Edwards pleaded guilty to brandishing a gun in the Helena robbery.
Sterling Edwards is scheduled for sentencing May 30.
The FBI and Birmingham Police Department investigated the case. Assistant U.S. Attorney Joseph P. Montminy and Robin B. Mark are prosecuting the case.
Baltimore Man Exiled to over 11 Years in Prison on Drug ChargesRead the Press Release
Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Tracey Betters, age 21, of Baltimore, Maryland, today to 135 months in prison followed by five years of supervised release for conspiracy to possess with the intent to distribute five kilograms or more of cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; Commissioner Anthony W. Batts of the Baltimore Police Department; and Maryland Attorney General Douglas F. Gansler.
According to their plea agreements, in May 2012, Tracey Betters, his brother Blake Betters, and Brandon Harris, were introduced to an undercover Bureau of Alcohol, Tobacco and Firearms (ATF) agent who proposed robbing a large scale drug trafficker of multiple kilograms of narcotics. The Betters brothers and Harris agreed to commit the robbery and to resell the stolen narcotics to customers in the Baltimore area.
On June 14, 2012, Tracey and Blake Betters, Harris and three co-conspirators met with the undercover agent to make their final preparations to commit the robbery. Tracey and Blake Betters, Harris and their co-conspirators were armed, and they all expected the weapons to be used to commit the robbery. After confirming that they were ready to rob the stash house, the Betters’, Harris and their co-conspirators followed the agent to a location in Baltimore where they believed they would be given the location of the robbery. En route to the final meeting location, Tracey Betters and his co-conspirators discussed their willingness to kill the stash house guards as well as the undercover agent, who they planned to rob of his share of the stolen cocaine. As the arrest team approached, the Betters and Harris fled, but were quickly apprehended and arrested.
Co-defendants Blake Betters, age 23, and Brandon Harris, age 22, both of Baltimore were each previously sentenced to 10 years in prison for their roles in the conspiracy.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorneys Clinton J. Fuchs and Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, who prosecuted the case.
Andover Business Owner Is Charged with ObstructionRead the Press Release
BOSTON – An Andover man was charged in an Information with obstructing a grand jury investigation by altering and deleting documents from his computer.
Kamlesh Patel, 48, was charged with obstruction by destruction and alteration of documents in connection with a grand jury investigation.
The Information alleges that Patel received a grand jury subpoena for records relating to his business dealings with another company and relating to claims that the other company was a service-disabled, veteran-owned and operated business. Allegedly, Patel was aware that he had documents on his computer that were responsive to the subpoena and that were relevant to the pending investigation. Patel nonetheless deleted documents on his computer that were responsive to the grand jury subpoena.
The statutory maximum sentence for the charge is 20 years in prison, followed by three years of supervised release and a fine of $250,000 or twice the gross gain or loss from the crime, whichever is greater. In the event of a conviction, any actual sentence will be determined by the assigned federal judge.
United States Attorney Carmen M. Ortiz; Jeffrey Hughes, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Division; Luis Hernandez, Special Agent in Charge of the General Services Administration, Office of Inspector General, Office of Investigations, New England Regional Office; Michael D. Conner, Special Agent in Charge of the U.S. Army Criminal Investigation Command, Boston Fraud Branch Office; Aaron Collins, Special Agent in Charge of the Small Business Administration, Office of Inspector General, Regional Office; Robert Panella, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering & Fraud Investigations, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Sara Miron Bloom and William Bloomer of Ortiz’s Office.
The details contained in the Information are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Additional Charges Filed in Murder-For-Hire CaseRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that more charges were filed today against two men accused of participating in a murder-for-hire scheme.
According to United States Attorney Peter J. Smith, a federal grand jury returned separate superseding indictments against Edward McLaughlin, of Florida and Gary Williams, of Scranton, related to an alleged conspiracy to murder McLaughlin’s ex-wife.
One superseding indictment charges McLaughlin with conspiracy to commit a murder-for-hire; two counts of solicitation to commit a crime of violence; possessing a firearm in furtherance of a crime of violence; unlawfully shipping a firearm and ammunition as a convicted felon; unlawfully transferring a firearm to be used in a violent crime; unlawfully shipping a firearm to commit a felony offense; and unlawfully transporting a firearm in interstate commerce.
The second indictment charges Williams with conspiracy to commit a murder-for-hire; possessing a firearm in furtherance of a violent crime; receiving a firearm with the intent to commit a felony offense; unlawfully possessing a firearm as a convicted felon; and attempting to tamper with a witness.
McLaughlin was originally indicted in July 2012. The charges resulted from an investigation by the Federal Bureau of Investigation and the Scranton Police Department. The cases are assigned to Senior U.S. District Judge A. Richard Caputo who ordered that the defendants be charged separately.The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In these particular cases, both defendants face a mandatory minimum of five years imprisonment. The maximum penalty under the federal statute is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Abingdon Residents Sentenced to Fourteen Years Imprisonment for Manufacturing MethamphetamineRead the Press Release
ABINGDON, VIRGINIA -- United States Attorney Timothy J. Heaphy announced today that Travis Dewayne Crasten a/k/a “Tater”, age 31, and Jessica Michelle Morefield, age 26, both of Abingdon, Va., were sentenced in the United States District Court for the Western District of Virginia in Abingdon to serve fourteen years in prison for their involvement in the manufacture of methamphetamine.
Following their convictions by a jury on October 17, 2012, Crasten and Morefield were each ordered to serve 168 months imprisonment and serve eight years supervised release for one count of conspiracy to manufacture 50 grams or more of methamphetamine, one count of manufacturing methamphetamine, one count of maintaining a place for the purpose of manufacturing methamphetamine, and one count of purchasing pseudoephedrine for the purpose of manufacturing methamphetamine. Previously, co-defendant Timothy Doss was sentenced to 10 years imprisonment and co-defendant Kelli Nicole Harris was sentenced to 51 months imprisonment following their guilty pleas to one count of conspiracy to manufacture 50 grams or more of methamphetamine.
According to evidence presented at trial and other hearing by Assistant United States Attorney Zachary T. Lee, Drug Enforcement Administration agents began investigating large quantities of pseudoephedrine being purchased by Crasten, Moorefield, Doss, and Long in Abingdon, Bristol, Virginia, and Bristol, Tennessee, beginning in November 2011 and continuing through February 2012. On February 23, 2012, agents with the Drug Enforcement Administration, Washington County Sheriff’s Office, Abingdon Police Department and Virginia State Police executed a search warrant at Crasten and Moorefield’s residence on Sugarbush Lane in Abingdon, Virginia. Agents found Crasten, Moorefield, Doss and Long in the residence, a red phosphoreus methamphetamine lab, and approximately nine grams of methamphetamine.
The investigation of this case was conducted by the Drug Enforcement Administration, Washington County Sheriff’s Office, Abingdon Police Department and Virginia State Police. Assistant United States Attorney Zachary T. Lee of the United States Attorney’s Office in Abingdon prosecuted the case.2012 Martin Luther King Park Murder of One Person, Wounding of Four Attributed to Alleged Bailey Boys Gang MemberRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Buffalo has charged Tariq Brown, 20, with the May 12, 2012 shooting at Martin Luther King Park that left Marquay Lee dead and four other individuals wounded. Two of the injured persons suffered permanent injuries, one victim is now a paraplegic and another was blinded in one eye.
According to Assistant U.S. Attorney Anthony M. Bruce, who is handling the prosecution of this case, the charges are contained in a fourth superseding indictment in the ongoing investigation into the Bailey Boys, a violent criminal gang operating on Buffalo's East Side. Brown is alleged to be a member of the Bailey Boys Gang which operates in an area of the City bounded by Winspear Avenue, the Kensington Expressway, Eggert Road and Main Street. Defendant Brown already stands accused of three other attempted murders which injured two people.
Today's charges carry a mandatory sentence of life in prison with the possibility of the death penalty.
Based on this latest superseding indictment, Bailey Boys members now stand accused four murders, 14 attempted murders, including four drive-by shootings. The attempted murders include a shooting that occurred during a neighborhood party with numerous children present and a shooting that occurred during a robbery. To date, two defendants have been convicted.
U.S. Attorney William J. Hochul, Jr., stated that “The fact that these violent events occurred in a park named after one of our most prominent advocates of peace and non violence should certainly not be lost on the public. Keeping in mind Dr. King's belief once warned that 'Our lives begin to end the day we become silent about things that matter', this office will continue to prosecute those who commit violence upon the streets of our community."
"Since the night of this incident, the Buffalo Division Safe Streets Task Force (SSTF) has worked tirelessly with our law enforcement partners to identify and bring to justice the person responsible for this extremely violent act," said FBI Acting Special Agent in Charge Richard M. Frankel. "Through the collaborative efforts of our law enforcement partners the Buffalo Division/SSTF remains committed to dismantling the most violent street gangs operating in Western New York."
"This has been an intense investigation from day one that has culminated with a dangerous person now off our streets," said Buffalo Police Commissioner Daniel Derenda. "For nearly a year, Buffalo Police have worked hand in hand with the U.S. Attorney's Office and the FBI to bring this individual to justice. I want to thank the public for all of the help they provided in solving this case."The superseding indictment is the result of an ongoing investigation on the part of the United States Attorney’s Office in close cooperation with the Erie County District Attorney’s Office, under the direction of District Attorney Frank A. Sedita, III, the Buffalo Police Department, under direction of Police Commissioner Daniel Derenda, the Federal Bureau of Investigation’s Safe Streets Task Force, under the Direction of Acting Special Agent in Charge Richard M. Frankel, the Erie County Sheriff’s Office, under the direction of Sheriff Timothy B. Howard, the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Frank Christiano. The Safe Streets Task Force includes members of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, the Buffalo Police Department, the Amherst Police Department, under the direction of Chief John Askey, the Cheektowaga Police Department, under the direction of Chief David Zack, the Hamburg Police Department, under the direction of Chief Michael Williams, the Niagara Frontier Transportation Authority Police, under the direction of Chief George Gast, the Erie County Sheriff’s Department, the New York State Police, under the direction of Major Matthew Renneman, the New York State Department of Corrections and Community Supervision, under the direction of Commissioner Brian Fischer.
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.
13 Correctional Officers among 25 Alleged BGF Gang Members and Associates Indicted on Federal Racketeering ChargesRead the Press Release
Baltimore, Maryland - A federal grand jury returned a racketeering indictment charging 25 individuals, including 13 correctional officers with the Maryland Department of Public Safety and Correctional Services, for conspiring to run operations of the Black Guerilla Family (BGF) gang inside correctional facilities. All 25 defendants also are charged with conspiracy to distribute and possession with intent to distribute drugs; and 20 of the defendants are charged with money laundering conspiracy.
The indictment and a detailed affidavit were unsealed today upon the arrests of the defendants and the execution of 15 search warrants. Approximately 170 agents and officers assisted in today's arrests and search warrants. The indictment was returned on April 2, 2013. One defendant was killed in a robbery several hours before the indictment was filed. The defendants are identified in Attachment A.
The indictment arose from the efforts of the Maryland Prison Task Force, a group of local, state and federal stakeholders that met regularly for more than two years and generated recommendations to reform prison procedures.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore Police Commissioner Anthony W. Batts; Secretary Gary D. Maynard of the Maryland Department of Public Safety and Correctional Services; and Chief Mark A. Magaw of the Prince George's County Police Department.
U.S. Attorney Rosenstein also recognized the efforts of the other members of the Maryland Prison Task Force in this investigation and prosecution, including: Baltimore City State's Attorney Gregg L. Bernstein; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; United States Marshal Johnny Hughes; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Tom Carr, Director of the Washington-Baltimore High Intensity Drug Trafficking Area; and Dave Engel, Executive Director of the Maryland Coordination and Analysis Center.
"Correctional officers were in bed with BGF inmates, in violation of the first principle of prison management," said U.S. Attorney Rod J. Rosenstein. "Preventing prison corruption requires intensive screening at prison entrances and punishment for employees who consort with inmates or bring cell phones and drugs into correctional facilities."
"This investigation revealed the pervasive nature of prison corruption in Baltimore City's Detention Centers," said FBI Special Agent in Charge Stephen E. Vogt. "Such corruption causes the FBI to divert crucial investigative resources away from addressing violence on the streets of Baltimore. In this case, the inmates literally took over "the asylum," and the detention centers became safe havens for the BGF. Such a situation cannot be tolerated. Law enforcement should not have to concern itself with criminal subjects who have already been arrested and relegated to detention centers."
"Ninety-nine percent of our Correctional Officers do their jobs with integrity, honesty and respect," said Secretary Gary Maynard of the Maryland Department of Public Safety and Correctional Services. "Today's indictment, along with those in the past, show that our Department will not stand idly by and let a few bad actors affect the security of our institutions. Nor will we allow them to impugn the reputation of the men and women who come to work every day and go about their jobs honorably. Those who would break the law should know we will always work tirelessly with our federal, state and local partners to root out corruption."
"Today's multi-jurisdictional takedown of suspected BGF gang members and orchestrators who infiltrated the criminal justice system is another example of the Baltimore Police Department's relentless focus on targeting the malignant gang organizations that plague our communities," said Police Commissioner Anthony Batts. "Thanks to the hard working detectives, federal agents and prosecutors who worked behind the scenes to build these cases. Our continued pledge to the people of Baltimore is that we will leverage the full capacity of our state and federal partnerships to identify those responsible for violence and bring them to justice."
The 10 men and 15 women charged in the indictment are alleged to be members or associates of the BGF, a gang active in prisons throughout the United States. According to the indictment, BGF has been the dominant gang at the Baltimore City Detention Center (BCDC), and in several connected facilities, especially the Baltimore Central Booking Intake Center, the Women's Detention Center, which houses many men, and in the Jail Industries Building. The indictment alleges that since at least 2009, BGF members and associates in BCDC and related prison facilities engaged in criminal activities, including drug trafficking; robbery; assault; extortion; bribery; witness retaliation; money laundering; and obstruction of justice.
BGF members and associates allegedly bribed correctional officers at BCDC and related prison facilities to smuggle drugs, cell phones and other contraband. Correctional officers arranged favored treatment and privileges for imprisoned BGF gang members, and officers thwarted interdiction and law enforcement efforts against BGF inmates. BGF members and associates allegedly had long-term sexual relationships with several correctional officers and impregnated them.
BGF leaders allegedly used contraband cell phones to order contraband. Co-conspirators delivered contraband to corrupt correctional officers who smuggled the items into the prisons. Correctional officers often arranged payment for the contraband. Some gang dues and drug profits were used to support activities of BGF street organizations outside the prisons.
The charging documents allege that correctional officers were able to bring contraband directly into the prisons through the main entrances. Inside the prisons, BGF was able to control contraband smuggling because BGF gang members were designated as "working men." Working men are inmates who are paid to assist management and are free to move about the facility.
Green Dot cash debit cards were allegedly used by inmates to pay BGF for smuggled contraband and used by BGF to transfer criminal proceeds. Luxury automobiles were among the purchases made by BGF with Green Dot cards.
According to the indictment, members and associates followed directions from the ranking BGF members in BCDC, especially inmate Tavon White. On January, 5, 2013, White explained in a phone call:
"This is my jail. You understand that? I'm dead serious.... I make every final call in this jail, ... and nothing go past me, everything come to me.... Any of my brothers that deal with anybody, it's gonna come to me. You see what I am saying? Everything come to me. Everything. Before a mother-f----- hit a n----- in the mouth, guess what they do, they gotta run it through me. I tell them whether it's a go ahead, and they can do it or whether they hold back. Before a mother-f----- stab somebody, they gotta run it through me.... Anything that get done must go through me."
Tavon White summarized his position in a conversation with correctional officer Adrena Rice on February 11, 2013:
"I told them worker men that they had to step down off the worker men spots or they was getting hit.... I hold the highest seat you can get... My word is law..., so if I told any mother-f------ body they had to do this, hit a police, do this, kill a mother-f-----, do anything, it got to get done. Period."
White allegedly used contraband cell phones to discuss BGF activities inside BCDC, such as the collection of fees and taxes, to request information about inmates, to hear grievances from other BGF inmates, and to coordinate his contraband smuggling operation. White and other gang members developed sexual relationships with officers in order to gain influence over them.
White allegedly had long-term sexual relationships inside BCDC with four correctional officers, Jennifer Owens, Katera Stevenson, Chania Brooks and Tiffany Linder, impregnating each of the four officers at least once. Owens had "Tavon" tattooed on her neck and Stevenson had "Tavon" tattooed on her wrist. All four officers allegedly help smuggle contraband into BCDC and related facilities. White allegedly gave Owens a diamond ring and provided luxury automobiles to Owens, Stevenson and Brooks. The indictment includes many overt acts in furtherance of the racketeering enterprise. For example, in November 2012, correctional officer Jasmin Jones allegedly stood guard outside a closet in BCDC so that correctional officer Kimberly Dennis and inmate Derius Duncan could have sex. Corrupt officers also warned BGF inmates about law enforcement operations. For example, Brooks and Linder allegedly notified White when they learned about upcoming canine scans and jail cell searches. The affidavit specifies two occasions in which warning calls to White were intercepted: December 21, 2012 (from Brooks), and January 6, 2013 (from Linder). White then used his cell phone to spread the word to other inmates.
On January 6, 2013, White allegedly said:
"I just got a message (from Officer Tiffany Linder) saying that they was going to pull a shake down (prison search) tonight. Let me call all these dudes in my phone and let them know."
The U.S. Attorney expressed appreciation to Secretary Maynard and select members of his senior staff who confidentially arranged for 30 trusted correctional officers from outside Baltimore to join with federal agents and conduct surprise searches of BGF members and their jail cells on February 14, 2013, resulting in the discovery of important evidence.
The indictment seeks the forfeiture of $500,000 and other proceeds of the enterprise, including luxury automobiles.
The defendants face a maximum sentence of 20 years in prison on the racketeering and drug conspiracies, as well as for conspiracy to commit money laundering. Stevenson, Yarborough and Pinder each also face five years in prison for possession with intent to distribute marijuana.
The defendants are expected to have initial appearances in U.S. District Court in Baltimore this afternoon.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, the Prince George's County Police Department and Maryland Prison Task Force, Baltimore City Assistant State's Attorneys Kevin Wilson and Katie O'Hara for their work in the investigation. Mr Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
ATTACHMENT A
The following defendants are charged in the indictment unsealed today.
Inmates:
Tavon White, a/k/a Bulldog and Tay, age 36, of Baltimore; Jamar Anderson, a/k/a Hammer and Hamma Head, age 26, of Baltimore; Derius Duncan, age 26, of Baltimore; Steven Loney, a/k/a Stevie, age 24, of Baltimore; Jermaine McFadden, a/k/a Maine, age 24, of Baltimore; Kenneth Parham, age 23, of Baltimore; and
Joseph Young, a/k/a Monster, age 30, of Baltimore.Correctional officers:
Antonia Allison, age 27, of Baltimore; Ebonee Braswell, age 26, of Baltimore; Chania Brooks, age 27, of Baltimore; Kimberly Dennis, age 26, of Baltimore; Jasmin Jones, a/k/a J.J., age 24, of Baltimore; Taryn Kirkland, age 23, of Baltimore; Katrina LaPrade, a/k/a Katrina Lyons, age 31, of Baltimore; Tiffany Linder, age 27, of Baltimore; Vivian Matthews, age 25, of Essex, Maryland; Jennifer Owens, a/k/a O and J.O., age 31, of Randallstown; Adrena Rice, age 25, of Baltimore; Katera Stevenson, a/k/a KK, age 24, of Baltimore; and
Jasmine Thornton, a/k/a J.T., age 26, of Glen Burnie.Outside suppliers:
Tyesha Mayo, age 29, of Baltimore; Teshawn Pinder, age 24, of Baltimore; Tyrone Thompson, a/k/a Henry, age 36, of Baltimore; Ralph Timmons, Jr., a/k/a Boosa, age 34, of Baltimore (deceased); and
James Yarborough, a/k/a J.Y., age 26, of Baltimore
22 April 2013
U. S. Attorney's Office and Detroit One MembersObserve National Crime Victims's Rights WeekRead the Press Release
Detroit, Michigan - United States Attorney Barbara L. McQuade, Detroit Police Chief Chester Logan, along with several law enforcement agencies and community members of Detroit One as well as the mother of a crime victim will hold an observance in memory of crime victims. The observance will take place on Thursday, April 25, 2013 at 2:30 pm at Lafayette Green Park, located on the corner of W. Lafayette Blvd and Shelby in the downtown area of Detroit.
This event is being held in conjunction with the observance of National Crime Victims' Rights Week, April 21-27. This year's theme, "New Challenges. New Solutions," celebrates the spirit of Detroit One and also highlights the need for us to assist and serve each and every victim in need of hope and help.
A perennial cottage garden will be planted in remembrance of crime victims who have lost their lives to violence in the City of Detroit, with the event to serve as an announcement and invitation to come out and view this lovely memorial. The perennials will re-bloom each year symbolizing those who are not forgotten. The garden is tended regularly and is kept looking beautiful year round.
"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 McQuade. "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."
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 Eastern District of Michigan, like other federal, state and local law enforcement agencies, has a dedicated Victim Witness Unit that serves federal crime victims across the District's many counties. Members of this unit notify victims of significant case events through the Department of Justice's Victim (DOJ) Notification System (VNS). Such notice enables victims to participate in court proceedings and make their voices heard. According to Department of Justice Statistics, in Fiscal Year (FY) 2011, the U.S. Attorneys' offices provided notice of over 10.4 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. In FY 2011, Victim-Witness personnel in the United States Attorney's offices accompanied over 28,000 victims to court hearings and trials. 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 Eastern District of Michigan's Victim Witness Unit 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.
Further information about National Crime Victims' Rights Week is available at http://ovc.ncjrs.gov/ncvrw/.
Two Sentenced for Alton Heroin Overdose DeathRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Tyrone L. Adams, 33, and Cara L. Moss, 26, were each sentenced in United States District Court in East St. Louis on Monday, April 22, 2013, for selling the heroin which caused the overdose death of Leonard O. Hormann, III.
Adams, of Alton, IL, received a sentence of 15 years. Moss, also of Alton, received a sentence of 10 years.
Adams and Moss pled guilty on January 14, 2013 to selling heroin to Hormann in Alton on August 20, 2012. Hormann was 23 years old when he died.
“These severe federal prison sentences should put drug dealers on notice that they peddle heroin at their own risk, and those risks are considerable. My office will continue its initiative to stop the heroin overdose death epidemic among our young citizens. The prosecution and sentencing of Adams and Moss are just a part of our ongoing anti-heroin initiative,” said United States Attorney Wigginton.
Wigginton especially commended the work of the Alton Police Department. “The Alton Police investigation in this case was as good as any I have seen. I am also proud that these convictions resulted from close coordination between my office and the Madison County State’s Attorney’s Office,” said Wigginton.
Adams also received concurrent 15 year sentences for “Maintaining Drug-Involved Premises” at his Powhattan Street residence in Alton, IL, and for “Distribution of Heroin Within 1000 Feet of a School,” that being The Motivational Achievement Center, a public school in Alton.
Moss also received a concurrent 10 year sentence for “Maintaining Drug-Involved Premises” at the residence she shared with Adams in Alton, between June and September 2012.
Close family members of the late Leonard O. Hormann, III spoke at the sentencing hearings on April 22, 2013. Each of those family members spoke of their grief and continuing sense of loss.
At her sentencing hearing on Monday, Moss told the Court that “I started with drinking in high school, then marijuana, cocaine, then pain pills, and finally heroin. I went to rehab and failed. Now I’ve lost my kids because of the terrible choices I made. I just wish I could take it all back.”
The investigation that resulted in the successful prosecutions of Adams and Moss was conducted by the Alton Police Department.
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Two Northern California Men in ‘Sextortion’ Plot Targeting Professional Poker Players Receive Federal Prison SentencesRead the Press Release
LOS ANGELES – Two Silicon Valley men were sentenced today to federal prison terms of 3½ years and two years for their roles in a scheme that used naked photographs and other private information stolen from email accounts in an attempt to extort hundreds of thousands of dollars from professional players on the World Poker Tour.
Tyler Schrier, 23, of Menlo Park, was sentenced to 42 months in prison after pleading guilty to conspiracy, extortion and unauthorized access to a protected computer to obtain information.
In addition to the “sextortion” plot, Schrier admitted that he had previously extorted and received more than $26,000 from professional poker players in another plot. He further admitted that while free on bond after being charged in the “sextortion” case, he illegally accessed two email accounts that allowed him to steal approximately $4,000 from online poker accounts.
The second man sentenced today – Keith James Hudson, 39, of San Jose – received a two-year prison term after pleading guilty to unauthorized access to a protected computer to obtain information for purposes of private financial gain. Hudson admitted that he hacked into a poker player’s email account, stole naked photographs from the illegally accessed account, and plotted with Schrier to extort poker players with those naked images.
Schrier and Hudson were sentenced by United States District Judge S. James Otero.
According to court documents, the sextortion scheme took place in the fall of 2010, after members of the conspiracy illegally accessed an email account belonging to Joe Sebok. Armed with intimate e-mails and photographs of the victim, Schrier threatened to post those intimate photographs and e-mails on the Internet unless Sebok and other victims paid hundreds of thousands of dollars in extortion payments. Sebok and the other victims in this sextortion case did not make any payments.
As part of the scheme, in November 2010, Schrier sent an e-mail with a nude photograph of Sebok to approximately 100 individuals.
During today’s sentencing hearing, Sebok addressed the court and said the victims of the plot had “their lives altered and shattered in irreparable ways.”
After the defendants hacked into his email account and released some information to the public, the fallout “instantly damaged my ability to sustain my livelihood doing what I had been since 2005,” Sebok told Judge Otero. “In short, I was no longer able to maintain my then-current level of participation in the poker industry, representing the brands that I had been previously, as well as greatly destroying my ability to do so with new companies moving forward. Without belaboring the point too much, it was a nightmare, and one that I was forced to live through with millions of people watching.”
A third defendant in the case, Ryder Finney, 22, of Philadelphia, pleaded guilty to conspiracy and will be sentenced later this year in federal court in Philadelphia. At sentencing, Finney faces a statutory maximum sentence of five years in prison.
The sextortion case was investigated by the Federal Bureau of Investigation.
Schrier pleaded guilty pursuant to a plea agreement that involved federal prosecutors in Los Angeles, San Francisco, Connecticut, Boston, Tampa and Minnesota.
Release No. 13-055
Two Gang Members Plead Guilty in Dodge City Racketeering CaseRead the Press Release
WICHITA, KAN. – Two members of a Dodge City street gang charged in a federal racketeering case have pleaded guilty, U.S. Attorney Barry Grissom said today.
Anthony Wright, 27, Dodge City, Kan., pleaded guilty to one count of conspiracy to commit racketeering and one count of discharging a firearm in a crime of violence. Jose Neave, 23, Dodge City, Kan., pleaded guilty to one count of attempted murder in furtherance of racketeering.
In his plea, Wright admitted he was a member of the Norteno street gang when he was involved in the murder of Israel Peralta on June 8, 2009, in Dodge City. On the day of the killing, Wright and another conspirator were out driving when they noticed a group of Hispanic males in a trailer park in south Dodge City who they believed were members of the rival Sureno gang. Later that day, Wright and three other Nortenos met together and decided to get in the car and go looking for Sureno gang members.
Wright drove the Nortenos to the trailer park and parked the car. Two of the Nortenos in the car with Wright were armed. One had a handgun that looked like a machine gun and the other had a revolver. They got out of the car with guns drawn, ran toward the group of Hispanic males and began firing. Israel Peralta was shot and killed. After the shooting, the four Norteno gang members drove away from the scene.
In his plea, Wright admitted that as a member of the Nortenos he was part of an ongoing criminal enterprise. The gang used murder, robbery, assault and the threat of violence to protect and expand its operations. He admitted that while he was a Norteno he participated in the sale of methamphetamine. Several other Nortenos were active in the sale of methamphetamine at the same time.
In his plea, Jose Neave admitted that he was a member of the Diablos Viejos and was associated with the Nortenos street gang on Aug. 27, 2011, when he and other Nortenos attacked a group of men at 703 9th Avenue in Dodge City. Neave wielded a knife during the fight. Victims Gabriel Rivera and Carlos Ramirez were stabbed during the fight. Rivera’s injuries were life-threatening and required a life-flight to a hospital in Wichita.
Neave admitted that while he was a gang member it was not unusual for him and his fellow gang members to be armed with knives.
Wright is set for sentencing July 8. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on the racketeering charge, and a penalty of not less than 10 years and a fine up to $250,000 on the firearms charge.
Neave is set for sentencing July 8. He faces a maximum penalty of 10 years and a fine up to $250,000 on the racketeering charge.
Grissom commended the Dodge City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ford County Sheriff’s Office, the Kansas Bureau of Investigation, Assistant U.S. Attorney Lanny Welch and Assistant U.S. Attorney Aaron Smith for their work on the case.
Twice Convicted Sex Offender Pleads Guilty to Receiving Child Pornography While on Federal Probation for Prior Sex OffenseRead the Press Release
Greenbelt, Maryland – Larry Poole, age 50, of Laurel, Maryland pleaded guilty to receipt of child pornography.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Chief Richard McLaughlin of the Laurel Police Department; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to his plea agreement, on June 11, 2012 the Child Protective Services (CPS) received a report that Poole was sending text messages claiming to be molesting an unidentified nine year old girl. CPS referred the matter to the Laurel Police Department, who were not able to locate any child in Poole’s neighborhood matching the description used by Poole in his texts.
The Laurel police subsequently learned that Poole was on federal probation, and was registered as a sex offender based on two prior convictions: in 2003, of child abuse, in Baltimore County Circuit Court; and in 2006, of attempting to entice a minor to engage in sex, and possession of child pornography, in federal court for the District of Columbia.
Laurel police alerted Poole’s federal probation officer who conducted a surprise visit to Poole’s residence on June 25, 2012. Poole consented to a preview of his cell phone, and the probation officer discovered videos and images of child pornography. Poole admitted that an individual brought child pornography to Poole’s home the previous day on a thumb drive or SD card and helped Poole load pornographic images of girls under 14 years old onto Poole’s computer and cell phone.
Laurel police and the FBI executed a search warrant, seized Poole’s cell phone and computer, and discovered approximately six videos and 120 images of child pornography.
As part of his plea agreement, Poole must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Poole and the government have agreed that if the Court accepts the plea agreement Poole will be sentenced to 15 years in prison. Chief U.S. District Judge Deborah K. Chasanow scheduled sentencing for June 24, 2013, at 10:00 a.m.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit www.justice.gov/usao/md/Human-Trafficking/index.html.
United States Attorney Rod J. Rosenstein commended the Laurel Police Department and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.
Traficante De Marihuana Sentenciado A Mas De 17 AÑos De Prision Fresno, Tulare Y KernRead the Press Release
SACRAMENTO, Calif. – El Juez de Distrito de los Estados Unidos William B. Shubb sentenció el día de hoy a Uriel Ochoa-Espindola, de 44 años, residente de Fresno, a 17 años y medio de prisión por participar en una conspiración de tràfico de marihuana, anunció el Fiscal de los Estados Unidos Benjamin B. Wagner.
De acuerdo con los documentos del tribunal, Espindola era el líder de una operación masiva de producción de marihuana y de una banda interestatal de distribución de droga. Él y sus socios cultivaron decenas de miles de plantas de marihuana en tres condados diferentes en California y enviaron su producto por todo el país con la ayuda de camioneros comerciales. La operación de Espindola tenía su base cerca de Delhi, Calif., pero él controlaba cultivos de marihuana en los Condados de El Dorado, Tehama y Placer. Espindola organizó y dirigió personalmente cientos de libras de envíos de marihuana a Dakota del Sur, Colorado, Massachusetts, Washington, y Carolina del Norte. Espindola tenía 10 hombres bajo su mando. Él tomaba las decisiones clave, asignaba trabajos y organizaba negocios.
Al sentenciar a Espindola, el Juez Shubb dijo que Espindola manejaba una “operación muy seria,” e indicó que el papel de Espindola como líder tuvo un impacto importante en su decisión de sentencia.
De acuerdo con los documentos del tribunal, los investigadores incautaron tres pistolas y casi 11 000 plantas de marihuana en el lugar de cultivo en el Condado de El Dorado. Incautaron casi 17 500 plantas de marihuana en un cultivo en el Condado de Placer, y casi 2 000 plantas de marihuana en el Condado de Tehama.
La organización era bastante grande ya que tenían “gerentes intermedios”, tales como Valentine Ramírez-Cardínez, quien fue sentenciado a 15 años y ocho meses en prisión por dirigir los lugares de cultivo. Estos gerentes intermedios ayudaron a proteger y aislar a Espindola de un posible contacto con las autoridades. Después que 300 libras de su marihuana fueran incautadas por investigadores en Chicago, Espindola se escondió de los agentes encubiertos poniendo a Ramírez-Cardínez como encargado.
De acuerdo con documentos del tribunal, Espindola era “uno de los mayores traficantes de marihuana en el Norte de California.” Él, sus lugartenientes, y sus empleados usaron armas de fuego para promover esa operación. Ademàs de las armas encontradas en el lugar de cultivo del Condado El Dorado y una escopeta descubierta en la casa de Espindola, Ramírez-Cardínez dijo a uno de los oficiales encubiertos que él llevó un rifle de calibre .22 al lugar de cultivo del Condado Placer. Los investigadores encontraron finalmente otras 5 armas de fuego en la casa de Ramírez-Cardínez cuando fue arrestado. Anteriormente, Ramírez-Cardínez entregó a uno de los agentes encubiertos un rifle AK-47. El agente al parecer pagaría por el arma màs tarde.
Durante una audiencia probatoria relacionada con la sentencia, un agente especial del Departamento de Justicia de California testificó que los investigadores también encontraron tres pistolas adicionales, tres rifles AK-47, dos rifles M-16/M-4, cuatro escopetas, y un rifle en un domicilio en Rowland Lane en Corning, Calif. Ésta era una residencia en la que uno de los lugartenientes de Espindola cargaba un camión en conexión con uno de los envíos a través del país. Contrario a los alegatos de la defensa, el Juez Shubb recalcó que “Ésta fue su operación,” e hizo a Espindola responsable de las armas que sus socios y empleados usaron para fomentar la operación.
Este caso fue producto de una intensa investigación por parte de la Agencia Antidrogas de los EE.UU., la Oficina del Alguacil del Condado de El Dorado, la Oficina del Alguacil del Condado de Placer, La Oficina Antinarcóticos del Departamento de Justicia de California y el Equipo de Investigación de Marihuana de la Montaña y el Valle. El Fiscal Adjunto de los Estados Unidos Michael M. Beckwith procesó el caso.
Texas Man Sentenced to 20 Years in Prison for Conspiring to Distribute CocaineRead the Press Release
PITTSBURGH, Pa. - A resident of Houston, Texas, has been sentenced in federal court to 20 years in prison followed by six 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. Bloh imposed the sentence on Gathon Dudley Shannon a/k/a Gathow Dudly Channon, 46.
According to information presented to the court, from on or about Dec. 4, 2009 and continuing thereafter to on or about Sept. 29, 2011, in the Western District of Pennsylvania and elsewhere, Shannon conspired with others to possess with intent to distribute and distribute cocaine, a Schedule II controlled substance.
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 State Attorney General's Office and the Beaver Falls Police Department for the investigation leading to the successful prosecution of Shannon.
Tamral Guzman and Brian Hatcher SentencedRead the Press Release
Guzman Formerly Operated Maryville Pain Clinic
KNOXVILLE, Tenn.- On Apr. 18, 2103, Tamral S. Guzman, 42, of Blount County, Tenn., was sentenced to serve 258 months in federal prison by the Honorable Thomas A. Varlan, U.S. District Judge for the Eastern District of Tennessee. This sentence was the result of her August 2012 trial conviction of multiple drug, money laundering and structuring offenses, contained in a 57-count indictment, as well as her guilty plea in January 2013 to a charge of failure to appear.
Guzman was also ordered to forfeit all proceeds of her crimes, including three houses, a fishing boat, and more than $197,000 that had been seized by federal authorities following her arrest. The court also entered a money judgment of more than $2.5 million against Guzman, representing additional funds subject to forfeiture as a result of her crimes.
Guzman's criminal conviction came as a result of her operating Maryville Pain Management from August 2008 until it was closed by federal authorities in December 2010. During the sentencing hearing, the court heard testimony that customers seeking prescriptions for drugs visited the pain clinic on more than 11,000 occasions while it was open.
Brian Hatcher, 33, also of Blount County, was also sentenced on Apr. 18, 2013, to serve 130 months in prison for assisting Guzman in her failure to appear and for intimidation of a witness. In October 2012, prior to the conclusion of Guzman's trial, Hatcher and Guzman fled to Hollywood, Fla., where they lived for approximately one month before being apprehended by the U.S. Marshals Service agents on October 31, 2012.
The conviction of Guzman and Hatcher came as a result of a joint investigation by the Internal Revenue Service - Criminal Investigation, Drug Enforcement Administration, and Blount County 5th Judicial Drug Task Force. Assistant U.S. Attorneys Jennifer Kolman and Frank M. Dale, Jr. represented the United States.
Taleah Colleen Ralston 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 18, 2013, before U.S. District Judge Richard F. Cebull, TALEAH COLLEEN RALSTON, a 28-year-old resident of Hardin/Billings, appeared for sentencing. RALSTON was sentenced to a term of:
Prison: time served
Special Assessment: $100
Supervised Release: 4 years
RALSTON was sentenced in connection with her guilty plea to conspiracy to possess with the intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Marcia K. Hurd, the government stated it would have proved at trial the following:
RALSTON came to the attention of law enforcement in Big Horn County and on the Crow and Northern Cheyenne Reservations as a distributor of methamphetamine for Leroy Smith beginning in approximately 2006.
When questioned, RALSTON admitted that she had been part of the conspiracy to possess with intent to distribute methamphetamine for Smith during the time when she was dating his son and co-defendant Justin Smith. RALSTON withdrew from the conspiracy a significant time prior to her arrest. Both Leroy Smith and Justin Smith also implicated RALSTON as one of Leroy Smith's distributors of methamphetamine for a period of time within the conspiracy.
Leroy Smith and Justin Smith pled guilty to federal charges.
The investigation was a cooperative effort between the Montana Division of Criminal Investigation, the Bureau of Indian Affairs, and the Drug Enforcement Administration.
Suspect in Boston Marathon Attack Charged with Using<br /> a Weapon of Mass DestructionRead the Press Release
Attorney General Eric Holder announced today that Dzhokhar A. Tsarnaev, 19, a U.S. citizen and resident of Cambridge, Mass., has been charged with using a weapon of mass destruction against persons and property at the Boston Marathon on April 15, 2013, resulting in the death of three people and injuries to more than 200 people.
In a criminal complaint unsealed today in U.S. District Court for the District of Massachusetts, Tsarnaev is specifically charged with one count of using and conspiring to use a weapon of mass destruction (namely, an improvised explosive device or IED) against persons and property within the United States resulting in death, and one count of malicious destruction of property by means of an explosive device resulting in death. The statutory charges authorize a penalty, upon conviction, of death or imprisonment for life or any term of years. Tsarnaev had his initial court appearance today from his hospital room.
“Although our investigation is ongoing, today’s charges bring a successful end to a tragic week for the city of Boston, and for our country,” said Attorney General Eric Holder. “Our thoughts and prayers remain with each of the bombing victims and brave law enforcement professionals who lost their lives or suffered serious injuries as a result of this week’s senseless violence. Thanks to the valor of state and local police, the dedication of federal law enforcement and intelligence officials, and the vigilance of members of the public, we’ve once again shown that those who target innocent Americans and attempt to terrorize our cities will not escape from justice. We will hold those who are responsible for these heinous acts accountable to the fullest extent of the law.”
“The events of the past week underscore in stark terms the need for continued vigilance against terrorist threats both at home and abroad,” said John Carlin, Acting Assistant Attorney General for National Security. “Friday’s arrest and today’s charges demonstrate what can be achieved by a collaborative, round-the clock response involving law enforcement officers, intelligence professionals, prosecutors and the general public.”
“Today’s charges are the culmination of extraordinary law enforcement coordination and the tireless efforts of so many, including ordinary citizens who became heroes as they responded to the call for help in the hours and days following the Marathon tragedy,” said Carmen Ortiz, U.S. Attorney for the District of Massachusetts. “The impact of these crimes has been far-reaching, affecting a worldwide community that is looking for peace and justice. We hope that this prosecution will bring some small measure of comfort both to the public at large and to the victims and their families that justice will be served. While we will not be able to comment on any possible communications between the suspect and law enforcement at this time, as a general rule, the government will always seek to elicit all the actionable intelligence and information we can from terrorist suspects taken into our custody.”
“The events of this week have moved at a breakneck pace. Yet the one consistent element of this investigation has been the collective efforts of our law enforcement and intelligence partners, working side-by-side, day and night, to identify and find those responsible for this attack, while keeping the public safe,” said Rick DesLauriers, Special Agent in Charge of the FBI’s Boston Division. “We are grateful to the American people for their assistance; we would not be successful without their trust and support. We will continue to investigate this matter with the greatest diligence and expediency, and we will do all that we can to protect those we serve.”
“Friday night’s capture of the suspect brought immediate relief to a community from a public safety viewpoint. However, much work remains and many questions require answers. Today’s charges represent another step on the long road toward justice for the victims of these crimes. On behalf of the citizens of this great Commonwealth, the Massachusetts State Police will continue to work diligently with our federal and local partners to bring this defendant to justice for his alleged acts and ensure the public’s safety,” said Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police.
“Finding the alleged perpetrators of this savage act of terrorism four days after the attack on the City of Boston was a herculean effort and shows the true cooperation and dedication of the law enforcement community,” said Boston Police Commissioner Ed Davis. “We were relentless in our pursuit of the suspects. The arrest of Tsarnaev and today’s charges should send a clear message to those who look to do us harm, the entire law enforcement community will go after you, find you and bring you to justice.”
This investigation was conducted by the FBI’s Boston Division, the Boston Police Department, the Massachusetts State Police, and member agencies of the Boston Joint Terrorism Task Force, which is comprised of more than 30 federal, state and local enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement – Homeland Security Investigations, U.S. Marshals Service, U.S. Secret Service, the Massachusetts Bay Transit Authority and others. In addition, the Watertown Police Department, the Cambridge Police Department, the Massachusetts Institute of Technology (MIT) Police Department, the Boston Fire Department, the National Guard and police, fire and emergency responders from across Massachusetts and New England played critical roles in the investigation and response.
This case is being prosecuted by Assistant U.S. Attorneys William Weinreb and Aloke Chakravarty from the Anti-Terrorism and National Security Unit of the U.S. Attorney’s Office for the District of Massachusetts, with assistance from the Counterterrorism Section of the Justice Department’s National Security Division.
The public is reminded that charges contained in an indictment or criminal complaint are merely allegations, and that defendants are presumed innocent unless and until proven guilty.
Related Materials:
Tsarnaev Complaint
Suspect in Boston Marathon Attack Charged with Using A Weapon of Mass DestructionRead the Press Release
BOSTON – Attorney General Eric Holder and U.S. Attorney Carmen Ortiz announced today that Dzhokhar A. Tsarnaev, 19, a U.S. citizen and resident of Cambridge, Mass., has been charged with using a weapon of mass destruction against persons and property at the Boston Marathon on April 15, 2013, resulting in the death of three people and injuries to more than 200 people.
In a criminal complaint unsealed today in U.S. District Court for the District of Massachusetts, Tsarnaev is specifically charged with one count of using and conspiring to use a weapon of mass destruction (namely, an improvised explosive device or IED) against persons and property within the United States resulting in death, and one count of malicious destruction of property by means of an explosive device resulting in death. The statutory charges authorize a penalty, upon conviction, of death or imprisonment for life or any term of years. Tsarnaev had his initial court appearance today from his hospital room.
“Although our investigation is ongoing, today’s charges bring a successful end to a tragic week for the city of Boston, and for our country,” said Attorney General Eric Holder. “Our thoughts and prayers remain with each of the bombing victims and brave law enforcement professionals who lost their lives or suffered serious injuries as a result of this week’s senseless violence. Thanks to the valor of state and local police, the dedication of federal law enforcement and intelligence officials, and the vigilance of members of the public, we’ve once again shown that those who target innocent Americans and attempt to terrorize our cities will not escape from justice. We will hold those who are responsible for these heinous acts accountable to the fullest extent of the law.”
“The events of the past week underscore in stark terms the need for continued vigilance against terrorist threats both at home and abroad,” said John Carlin, Acting Assistant Attorney General for National Security. “Friday’s arrest and today’s charges demonstrate what can be achieved by a collaborative, round-the clock response involving law enforcement officers, intelligence professionals, prosecutors and the general public.”
“Today’s charges are the culmination of extraordinary law enforcement coordination and the tireless efforts of so many, including ordinary citizens who became heroes as they responded to the call for help in the hours and days following the Marathon tragedy,” said Carmen Ortiz, U.S. Attorney for the District of Massachusetts. “The impact of these crimes has been far-reaching, affecting a worldwide community that is looking for peace and justice. We hope that this prosecution will bring some small measure of comfort both to the public at large and to the victims and their families that justice will be served. While we will not be able to comment on any possible communications between the suspect and law enforcement at this time, as a general rule, the government will always seek to elicit all the actionable intelligence and information we can from terrorist suspects taken into our custody.”
“The events of this week have moved at a breakneck pace. Yet the one consistent element of this investigation has been the collective efforts of our law enforcement and intelligence partners, working side-by-side, day and night, to identify and find those responsible for this attack, while keeping the public safe,” said Rick DesLauriers, Special Agent in Charge of the FBI’s Boston Division. “We are grateful to the American people for their assistance; we would not be successful without their trust and support. We will continue to investigate this matter with the greatest diligence and expediency, and we will do all that we can to protect those we serve.”
“Friday night’s capture of the suspect brought immediate relief to a community from a public safety viewpoint. However, much work remains and many questions require answers. Today’s charges represent another step on the long road toward justice for the victims of these crimes. On behalf of the citizens of this great Commonwealth, the Massachusetts State Police will continue to work diligently with our federal and local partners to bring this defendant to justice for his alleged acts and ensure the public’s safety,” said Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police.
“Finding the alleged perpetrators of this savage act of terrorism four days after the attack on the City of Boston was a herculean effort and shows the true cooperation and dedication of the law enforcement community,” said Boston Police Commissioner Ed Davis. “We were relentless in our pursuit of the suspects. The arrest of Tsarnaev and today’s charges should send a clear message to those who look to do us harm, the entire law enforcement community will go after you, find you and bring you to justice.”
This investigation was conducted by the FBI’s Boston Division, the Boston Police Department, the Massachusetts State Police, and member agencies of the Boston Joint Terrorism Task Force, which is comprised of more than 30 federal, state and local enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement – Homeland Security Investigations, U.S. Marshals Service, U.S. Secret Service, the Massachusetts Bay Transit Authority and others. In addition, the Watertown Police Department, the Cambridge Police Department, the Massachusetts Institute of Technology (MIT) Police Department, the Boston Fire Department, the National Guard and police, fire and emergency responders from across Massachusetts and New England played critical roles in the investigation and response.
This case is being prosecuted by Assistant U.S. Attorneys William Weinreb and Aloke Chakravarty from the Anti-Terrorism and National Security Unit of the U.S. Attorney’s Office for the District of Massachusetts, with assistance from the Counterterrorism Section of the Justice Department’s National Security Division.
The public is reminded that charges contained in an indictment or criminal complaint are merely allegations, and that defendants are presumed innocent unless and until proven guilty.
(Download Criminal Complaint )
Seventeen-Time Felon Sentenced for Possessing Assault Weapon AmmunitionRead the Press Release
ATLANTA - Keith Wade was sentenced in federal court today to serve over 16 years in federal prison after a jury found him guilty on September 27, 2012, of possession of ammunition by a convicted felon.
“This seventeen-time felon has been victimizing the citizens of Georgia for over 20 years, committing crime after crime, many of which involved firearms,” said United States Attorney Sally Quillian Yates. “Assault weapons and high capacity magazines in the hands of convicted felons like the defendant threatens the safety of law enforcement and the citizens of Georgia.”
“The criminal history of the defendant (Wade) shows a complete and utter disregard for the lives of others as well as for their personal pursuits,” said ATF Special Agent in Charge Christopher Shaefer. “As an agency and unified law enforcement community, we will not tolerate armed violent felons continually terrorizing and reducing the quality of life in the neighborhoods where we live, work, and play.”
According to United States Attorney Yates the charges and other information presented in court or contained in public documents: Wade was on parole when his parole officer received a call from a person who wished to remain anonymous. The caller stated that the defendant was threatening him and his girlfriend. The girlfriend had dated Wade at one time. The caller told the defendant’s parole officer that Wade had made threatening phone calls, sent threatening text messages, and had driven past the caller’s house several times. The caller forwarded one of the text messages, which included a picture of the defendant holding an assault rifle.
On December 29, 2010, the defendant’s parole officer, along with Special Agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, conducted a search of the defendant’s residence in College Park, Ga. During the search, officers found two fully loaded assault rifle magazines containing 60 rounds of 7.62 mm ammunition and a box containing 24 rounds of 9 mm ammunition. Because he was a convicted felon, Wade was prohibited from possessing ammunition.
Prior to Wade’s arrest in December 2010, he had been convicted of at least 17 felonies, including drug-related convictions, theft, and several violent felonies. The defendant’s violent felony convictions include felony obstruction of law enforcement, battery, and attempted armed robbery.
Wade, 43, of College Park, Ga. was convicted of violating Title 18, United States Code, Sections 922(g) and 924(e), and sentenced before Senior United States District Court Judge Willis B. Hunt, Jr. to serve 16 years, 3 months in prison to be followed by five years of supervised release. Because this conviction was rendered after the defendant sustained three prior violent felonies, the law required a mandatory minimum confinement period of 15 years in prison and a fine of up to $250,000.This case was investigated by Special Agents of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Georgia Board of Pardons and Paroles.
Assistant United States Attorney Leslie J. Abrams prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs 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.
Ringleader and Brothel Operator Convicted of Sex Trafficking ChargesRead the Press Release
Threatened to Assault Prostitutes and Competitor Pimps, and Made Death Threats to Protect and Maintain Prostitution Businesses in Annapolis and EastonBaltimore, Maryland – A federal jury convicted German de Jesus Ventura, age 35, a citizen of El Salvador and an illegal alien residing in Capitol Heights, Maryland of conspiring to transport and entice females to travel interstate for prostitution; transporting females for prostitution; enticing females to travel interstate for prostitution; sex trafficking by force, fraud and coercion; and possessing a gun in furtherance of sex trafficking. The jury also convicted co-defendant Kevin Garcia Fuertes, a/k/a Kerlin Esquivel-Feuntes, age 25, a citizen of Honduras and an illegal alien residing in Annapolis, Maryland, and Richmond, Virginia, of the conspiracy and sex trafficking charges.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Chief Michael Pristoop of the Annapolis Police Department; Easton Police Department Chief David A. Spencer; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
According to evidence presented during the two week trial, since at least March 2008 through November 2010, Ventura and Fuertes ran brothels in Annapolis and Easton, Maryland. Ventura, the ringleader, employed Fuertes to advertise and manage the brothels, and the two men shared the cash proceeds of the prostitution business. The defendants recruited and employed prostitutes, many of whom were aliens present in the U.S. unlawfully. Ventura arranged for vans and other vehicles to transport females within Maryland and across state lines to engage in prostitution. Ventura assaulted and threatened to use violence against one prostitute to coerce her continued participation in prostitution, from which Fuertes financially benefitted.
Ventura and Fuertes also threatened to use violence against competitor pimps. On August 3, 2010, Ventura used a cell phone to send three threatening multi-media messages depicting a semi-automatic pistol, the pistol’s magazine and an angel of death statue to a competitor pimp. On November 3, 2010, Ventura arranged for the assault of a competitor pimp with a pistol grip shotgun. In addition to these threats, Ventura reported criminal activity of the pimps in order to divert the attention of law enforcement and facilitate his own prostitution activities. On March 13, 2010, Ventura falsely reported a kidnaping and rape to the police in order to falsely implicate another pimp with the crimes. Ventura also claimed responsibility for the murder of competitor pimp Ricardo Ramirez Riva on September 13, 2008, in order to intimidate the competition, as well as his own employees and prostitutes.
Ventura also sought to intimidate members of the community who assisted his prostitutes. On September 1, 2009 Ventura called and threatened to kill a family who provided temporary housing to one of his prostitutes after she was arrested. He also poured gasoline on their apartment door and smashed windows from their vehicle.
On July 7, 2010, law enforcement executed a search warrant at the brothel located at 318 E. Dover Street in Easton and arrested Isidro Jimenez-Sanchez and Wibert Herrera-Aranda who were working at the brothel.
Ventura and Fuentes face a maximum sentence of five years in prison for the conspiracy count and a mandatory minimum of 15 years in prison to a maximum of life in prison for the sex trafficking count. In addition, Ventura faces a maximum of life in prison for possessing a gun in furtherance of sex trafficking and 10 years in prison for the transporting individuals to engage in prostitution and enticement counts. U.S. District Judge William D. Quarles, Jr. scheduled sentencing for July 24, 2013 at 1:00 p.m.
Jose Antonio Reyes-Maradiaga, age 30; Isidro Jiminez-Sanchez and Wibert Alejandro Herrera-Aranda, both age 34, of Easton, Maryland, previously pleaded guilty to their participation in the scheme. These defendants advertised Ventura’s brothels, made appointments for the prostitutes and collected money. Reyes also helped to transport the women to the brothel locations, and purchased supplies. Jiminez-Sanchez, a Mexican citizen who entered the United States illegally, was sentenced to a year and day for transporting prostitutes, and upon completion of his sentence, was deported from the U.S. to Mexico. Herrera-Aranda was sentenced to 18 months in prison and Reyes was sentenced to time served. Both were also deported.
This case originated with the Annapolis Police Department and was subsequently investigated by members of the Maryland Human Trafficking Task Force formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit Human-Trafficking
United States Attorney Rod J. Rosenstein praised the Annapolis and Easton Police Departments and HSI Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys P. Michael Cunningham and Rachel M. Yasser, who are prosecuting the case.
Restaurant Owner Sentenced to Probation with House Arrest for Defrauding the GovernmentRead the Press Release
PITTSBURGH, - A resident of Allegheny County has been sentenced in federal court to three years probation, eight months of which must be served under house arrest, as well as ordered to pay $76,969.53 in restitution to the U.S. Railroad Retirement Board, on his conviction of wire fraud, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Roy G. Arthrell, Jr., 61.
According to information presented to the court, Arthrell was receiving a disability annuity from the U.S. Railroad Retirement Board since November 2006. He opened a restaurant named Roys by the Tracks in Finleyville that affected his eligibility for the disability annuity, but he failed to notify the RRB as he was required to do. As a result he defrauded the United States and converted approximately $65,000 of its property for his own use.
Assistant United States Attorney Nelson P. Cohen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the U.S. Railroad Retirement Board, Office of Inspector General for the investigation leading to the successful prosecution of Arthrell.
Ralph Lauren Corporation Resolves Foreign Corrupt Practices Act Investigation and Agrees to Pay $882,000 Monetary PenaltyRead the Press Release
Ralph Lauren Corporation (RLC), a New York based apparel company, has agreed to pay an $882,000 penalty to resolve allegations that it violated the Foreign Corrupt Practices Act (FCPA) by bribing government officials in Argentina to obtain improper customs clearance of merchandise, announced Mythili Raman, the Acting Assistant Attorney General for the Criminal Division, and Loretta E. Lynch, the United States Attorney for the Eastern District of New York.
According to the agreement, the manager of RLC’s subsidiary in Argentina bribed customs officials in Argentina over the span of five years to improperly obtain paperwork necessary for goods to clear customs; permit clearance of items without the necessary paperwork and/or the clearance of prohibited items; and on occasion, to avoid inspection entirely. RLC’s employee disguised the payments by funneling them through a customs clearance agency, which created fake invoices to justify the improper payments. During these five years, RLC did not have an anti-corruption program and did not provide any anti-corruption training or oversight with respect to its subsidiary in Argentina.
In addition to the monetary penalty, RLC agreed to cooperate with the Department of Justice in its ongoing investigation, to report periodically to the department concerning RLC’s compliance efforts, and to continue to implement an enhanced compliance program and internal controls designed to prevent and detect FCPA violations. If RLC abides by the terms of the agreement, the department will not prosecute RLC in connection with the conduct.
The agreement acknowledges RLC’s extensive, thorough, and timely cooperation, including voluntarily making employees available for interviews, making voluntary document disclosures, conducting a world-wide risk assessment, and making multiple presentations to the Department of Justice on the status and findings of the internal investigation and the risk assessment. In addition, RLC has engaged in early and extensive remediation, including conducting extensive FCPA training for employees world-wide, enhancing the company’s existing FCPA policy, implementing an enhanced gift policy as well as other enhanced compliance, control, and anti-corruption policies and procedures, enhancing its due diligence protocol for third-party agents, terminating culpable employees and a third-party agent, instituting a whistleblower hotline, and hiring a designated corporate compliance attorney.
In a related matter, RLC reached a settlement with the SEC and agreed to pay $734,846 in disgorgement and prejudgment interest. The SEC settlement was filed today.
The case is being prosecuted by Trial Attorney Daniel S. Kahn of the Criminal Division’s Fraud Section and Assistant United States Attorney Sarah Coyne, Chief of the Business and Securities Fraud Section from the Eastern District of New York. The case was investigated by the FBI’s New York Field Office. The department acknowledges and expresses its appreciation for the assistance provided by the SEC’s Division of Enforcement.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Ralph Lauren Corporation Resolves <br /> Foreign Corrupt Practices Act Investigation <br /> and Agrees to Pay $882,000 Monetary PenaltyRead the Press Release
Ralph Lauren Corporation (RLC), a New York based apparel company, has agreed to pay an $882,000 penalty to resolve allegations that it violated the Foreign Corrupt Practices Act (FCPA) by bribing government officials in Argentina to obtain improper customs clearance of merchandise, announced Mythili Raman, the Acting Assistant Attorney General for the Criminal Division, and Loretta E. Lynch, the United States Attorney for the Eastern District of New York.
According to the agreement, the manager of RLC’s subsidiary in Argentina bribed customs officials in Argentina over the span of five years to improperly obtain paperwork necessary for goods to clear customs; permit clearance of items without the necessary paperwork and/or the clearance of prohibited items; and on occasion, to avoid inspection entirely. RLC’s employee disguised the payments by funneling them through a customs clearance agency, which created fake invoices to justify the improper payments. During these five years, RLC did not have an anti-corruption program and did not provide any anti-corruption training or oversight with respect to its subsidiary in Argentina.
In addition to the monetary penalty, RLC agreed to cooperate with the Department of Justice, to report periodically to the department concerning RLC’s compliance efforts, and to continue to implement an enhanced compliance program and internal controls designed to prevent and detect FCPA violations. If RLC abides by the terms of the agreement, the Department will not prosecute RLC in connection with the conduct.
The agreement acknowledges RLC’s extensive, thorough, and timely cooperation, including self-disclosure of the misconduct, voluntarily making employees available for interviews, making voluntary document disclosures, conducting a worldwide risk assessment, and making multiple presentations to the Department on the status and findings of the internal investigation and the risk assessment. In addition, RLC has engaged in early and extensive remediation, including conducting extensive FCPA training for employees worldwide, enhancing the company’s existing FCPA policy, implementing an enhanced gift policy and other enhanced compliance, control and anti-corruption policies and procedures, enhancing its due diligence protocol for third-party agents, terminating culpable employees and a third-party agent, instituting a whistleblower hotline, and hiring a designated corporate compliance attorney.
In a related matter, the U.S. Securities and Exchange Commission today announced a non-prosecution agreement with RLC , in which RLC agreed to pay $$734,846 in disgorgement and prejudgment interest.
The case is being prosecuted by Trial Attorney Daniel S. Kahn of the Criminal Division’s Fraud Section and Sarah Coyne, Chief of the Business and Securities Fraud Section of the Eastern District of New York. The case was investigated by the FBI’s New York Field Office. The department acknowledges and expresses its appreciation for the assistance provided by the SEC’s Division of Enforcement.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Procesos Penales De Marihuana En Los Condados De Fresno, Tulare Y KernRead the Press Release
FRESNO, Calif. — Cinco casos contra cinco hombres involucrados en operaciones separadas de cultivo de marihuana en los Condados de Fresno, Tulare y Kern se resolvieron hoy en el tribunal federal, anunció el Fiscal de los EE.UU Benjamin B. Wagner.
Fuerzas Especiales Antidroga contra el Crimen Organizado. Caso
(No. 1:11CR93 LJO)
El Juez de Distrito de los EE.UU, Lawrence J. O’Neill. sentenció a Diocelina Bustos Abarca, 40, de Bakersfield, a cinco años y nueve meses de prisión por varios delitos ambientales y de cultivo de marihuana. Le ordenó pagar $25, 941 en restitución al Servicio Forestal de los EE.UU. por el daño causado por las operaciones de cultivo de marihuana.Abarca llamó la atención de las autoridades durante una investigación hecha a Miguel Gómez-Gómez, 27, de Dinuba, quien estaba implicado en una operación masiva de cultivo de marihuana en terrenos públicos en los Condados de Fresno y Madera. Gómez-Gómez y cinco de sus socios fueron posteriormente acusados y condenados en un tribunal federal en Fresno, recibiendo sentencias de hasta 11 años en prisión. Cuando termine su condena en prisión, Abarca serà deportada a México.
Abarca se declaró culpable al comienzo de este año, admitiendo su participación en una conspiración a largo plazo para cultivar, distribuir y poseer con la intención de distribuir marihuana. Ella reconoció su participación en la operación de cultivo de marihuana de Gómez-Gómez, que produjo al menos 49,206 plantas de marihuana, así como otra operación en el Condado de Tulare, que produjo al menos 8, 847 plantas de marihuana. Ambas operaciones utilizaron terrenos públicos en el Bosque Nacional Sequoia y causó daños importantes a la tierra y a los recursos naturales.
Este caso fue el producto de una investigación hecha por la Administración de Control de Drogas de los EE.UU. (DEA), el Servicio de Inmigración y Control de Aduanas (ICE), la Oficina de Investigaciones del Departamento de Seguridad Nacional (HSI), bajo el programa de Fuerzas Especiales Antidroga contra el Crimen Organizado (OCDETF). El programa OCDETF es la pieza central de la estrategia contra las drogas del Fiscal General de los Estados Unidos para reducir la disponibilidad de drogas, interrumpiendo y desmantelando organizaciones importantes de tràfico de drogas y organizaciones de blanqueo de dinero. El Servicio Forestal de los EE.UU., el Equipo Contra el Tràfico de Drogas en el Área de Gran Intensidad en la Parte Sur de los Tres Condados, la Oficina del Alguacil del Condado de Santa Ana, la Oficina del Alguacil del Condado de Kern, y el Departamento de Policía de Bakersfield también colaboraron en la investigación. Otras seis personas fueron acusadas y condenadas en un tribunal federal por varios delitos de drogas e inmigración como resultado de esta investigación de la OCDETF.
Cultivo en un Almacén de Bakerfield (No. 1:10CR379 AWI)
En otro caso en el Condado de Kern, Mark McGrath, 51, de Florida, fue sentenciado a dos años y dos meses de prisión, seguidos de cinco años de libertad vigilada, por conspirar para cultivar, distribuir y poseer con la intención de distribuir 1,161 plantas de marihuana encontradas en un almacén en un àrea industrial de Bakersfield. También se le ordenó registrarse como delincuente de drogas y entregar equipo de cultivo avaluados en miles de dólares.Según los documentos del tribunal, McGrath había sido reclutado desde Florida para ayudar a organizar una operación de cultivo de marihuana con fines de lucro. Las plantas de marihuana se valoraron en màs de $ 4 millones. Ademàs de las plantas, los agentes de drogas incautaron aproximadamente 54.8 libras de marihuana procesada por un valor de aproximadamente $219,200.
Este caso fue el producto de una investigación llevada a cabo por la DEA, el Departamento de Policía de Bakersfield, y la Oficina del Alguacil del Condado de Kern.
Cultivo en un Rancho del Condado de Kern (No. 1:12CR299 LJO)
Salvador Gallegos Jr., 22, de Bakersfield, fue sentenciado a 18 meses en prisión por conspirar para cultivar, distribuir y poseer con la intención de distribuir, 920 plantas de marihuana cultivadas sin permiso del propietario del terreno de un rancho privado en un àrea rural del Condado de Kern. En el lugar de cultivo, los agentes antidrogas también incautaron un par de libras de marihuana procesada y un rifle de asalto cargado con 24 balas. De acuerdo con su declaración de culpable al principio de este año, Gallegos fue reclutado para ayudar con el trabajo en el cultivo y fue traído al rancho el día antes por hombres no identificados.Este caso fue el producto de una investigación llevada a cabo por la DEA, la HSI, el Servicio Forestal de los EE.UU., y la Oficina del Alguacil del Condado de Kern bajo la Operación Mercury, una operación de ejecución y erradicación en seis condados iniciada el año pasado en el Valle Central para contrarrestar la proliferación de operaciones de cultivo de marihuana a gran escala en terreno agrícola. Hasta la fecha, la Operación Mercury ha tenido como resultado el procesamiento penal de 83 acusados federales y la incautación de 482, 479 plantas de marihuana, 4,714 libras de marihuana procesada, 82 armas, y $113,783 en efectivo.
Cultivo Agrícola de Alpaugh (No. 1:12CR234 LJO)
En otro caso de la Operación Mercury, Antonio Becerra Sànchez, también conocido como Antonio Íñiguez Becerra, 49, de Morgan Hill, se declaró culpable de conspirar para cultivar, distribuir y poseer con la intención de distribuir marihuana. Según los registros del tribunal, se encontró a Becerra cultivando marihuana en una parcela de 20 acres de terreno agrícola en la pequeña comunidad agrícola de Alpaugh en el Condado de Tulare. Agentes del orden público incautaron màs de 4,000 plantas de marihuana en una propiedad de Saúl Morales de 47 años, ocupada por él mismo, su esposa Juliana García Torres de 53 años y su hijo Gerardo Alfonso Morales de 20 años, quienes también son acusados pero han presentado una declaración de no culpables de varios delitos de tràfico de marihuana. Las acusaciones hechas a Morales, su esposa e hijo son solamente alegatos y los acusados son considerados inocentes hasta que y a menos que se pruebe su culpabilidad fuera de toda duda razonable.La sentencia de Becerra està programada para el 8 de julio de 2013. Le espera una pena mínima obligatoria de 5 años en prisión y un màximo de 40 años en prisión y una multa de $ 5 millones. La sentencia real, sin embargo, se determinarà a discreción del tribunal después de considerar cualquier factor aplicable legislativo de sentencia y las Normas Federales de Sentencia. Después de terminar su sentencia en prisión, Becerra estarà sujeto a la deportación a México.
Este caso es producto de una investigación llevada a cabo por la DEA, la HSI, la Agencia de Control de Alcohol, Tabaco y Armas de Fuego (ATF), y la Oficina del Alguacil del Condado de Tulare.
Cultivo Agrícola en el Condado de Fresno (No. 1:11CR357 AWI)
Shavane Bouasangouane, 44, de Fresno, se declaró culpable hoy de mantener una operación de cultivo de marihuana en un terreno agrícola en Armstrong Avenue, Fresno, donde residía.Según documentos del tribunal, Bouasangouane estaba involucrado en el cultivo y procesamiento de màs de 800 libras de marihuana que pertenecían a él y a su hermano, Reney Bouasangouane, 48, quien es también acusado en el caso y ha presentado un alegato de no culpable. Se supone que Reney Bouasangouane es inocente hasta que y a menos que se demuestre su culpabilidad fuera de toda duda razonable.
De acuerdo con el alegato de Shavane Bouasangouane, la marihuana era supuestamente para su propio uso médico. Sin embargo, no se encontraron en su residencia ni papeles para hacer cigarrillos, ni accesorios de fumador ni otros artículos usados para ingerir marihuana. La propiedad pertenece a Somluck y Damrong Pattanumotana, un médico de Fresno. Su hijo, Goon Pattanumotana, profesor de economía en Willow International en Fresno, es el dueño de otra propiedad en Sanger, donde agentes de policía han encontrado múltiples operaciones de cultivo de marihuana en gran escala en el pasado. Las propiedades de Sanger y Armstrong son el tema de acciones civiles de ejecución pendientes iniciadas por la Oficina del Fiscal General de los EE.UU. en Fresno y estàn siendo gestionadas por los Fiscales Adjuntos de los EE.UU. Kevin Khasigian y Alyson Berg.
La sentencia de Bouasangouane està programada para el 1 de julio de 2013, y contempla un tiempo màximo de prisión de 20 años y una multa de hasta $500,000. La sentencia real, sin embargo, se determinarà a discreción del tribunal después de considerar cualquier factor aplicable legislativo de sentencia y las Normas Federales de Sentencia.
Este caso es producto de una investigación llevada a cabo por la DEA, y la Oficina del Alguacil del Condado de Fresno.
El Fiscal Adjunto de los EE.UU. Karen A. Escobar està procesando todos los casos penales.
Possession of Assault Rifle Nets East St. Louis Man A Prison Sentence of Eight YearsRead the Press Release
Willie Springer, 36, of East St. Louis, Illinois, was sentenced to 8 years in prison on Friday, April 19, 2013, by the United States District Court, for Unlawful Possession of a Firearm by a Previously Convicted Felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Springer was also ordered to pay a $100 special assessment, a $375 fine and to serve a term of 3 years of supervised release following imprisonment. There is no parole in the federal system. Springer has been in custody since his arrest on July 16, 2012.
“I believe that everyone is fed up with people who illegally possess firearms.” said United States Attorney Wigginton. “I am gratified that the Court, by its sentence, sends a very clear message – Do not illegally possess weapons on our streets.”
Court documents establish that on July 16, 2012 at 12:30 a.m., an Illinois State Trooper initiated a traffic stop on a vehicle with no front or rear registration plates. As the vehicle came to a stop, the passenger, later identified as Willie Springer, jumped out of the vehicle holding a black SKS assault rifle. Springer then fled from the Trooper into the courtyard of an occupied apartment complex. Springer ignored repeated commands to stop and drop the firearm, at which time the Trooper gave the command for his K9 officer to apprehend Springer. The firearm was determined to be a Norinco SKS M semi-automatic rifle, 7.62 x 39 mm caliber. During a search of the suspect’s vehicle, Illinois State Police officers recovered a 50-round American Tactical magazine that fit the SKS rifle, a black hooded zombie-style Halloween mask, a white Jason-style Halloween mask, and open alcohol.
The investigation was conducted by the WAVE Task Force. The WAVE Task Force focuses its efforts on combating violent crime in East St. Louis, Washington Park, and surrounding communities.
The case was prosecuted by Assistant United States Attorney Ali Summers.
Portland Man Sentenced on Drug and Mortgage Fraud ChargesRead the Press Release
PORTLAND, Ore. – On Wednesday, April 17, 2012, Oregon District Judge Michael W. Mosman sentenced Tu Ngoc Tran, 38, of Portland, Oregon, to 63 months in prison following his conviction in a jury trial on drug and wire fraud charges on December 7, 2012. The federal jury convicted Tran of one count of conspiracy to manufacture and distribute marijuana, two counts of manufacturing marijuana, one count of making a false statement on a loan application and one count of wire fraud. He was ordered to pay $341,112.83 in restitution to the victim lender, as well as a money judgment of $346,859.86.
Three other conspirators pleaded guilty to related offenses in this case. Minhthy Ngoc Tran pleaded guilty to conspiracy to manufacture or distribute marijuana and conspiracy to commit wire fraud. Huy Anh Nguyen pleaded guilty to manufacturing marijuana and conspiracy to commit wire fraud. Kiet Anh Nguyen pleaded guilty to conspiracy to commit bank larceny, a misdemeanor.
In late 2010, law enforcement officers from the Multnomah County Sheriff’s Office Special Investigations Unit (SIU) and the Clark Skamania Task Force (CSTF) in the Western District of Washington received an anonymous letter describing Tran’s involvement in illegal marijuana trafficking and mortgage fraud in Oregon and Washington. The letter described Tran’s use of two men as “straw buyers” to secure a loan of $350,000 that he used to buy a residence in Portland where he built a sophisticated marijuana production and distribution site.
In late December of 2010 and early January of 2011, members of the Multnomah County Sheriff’s Office, the Clark Skamania Drug Task Force, the Federal Bureau of Investigation (FBI), and the Regional Organized Crime Narcotics Task Force executed search warrants at four residences in Oregon and Washington used as illegal marijuana grow operations by Tran and his associates. Officers found a sophisticated marijuana grow room with 225 marijuana plants, extensive indoor growing and packaging equipment, and a money counter at Tran’s residence. They seized more than 50 pounds of processed marijuana with an estimated value of $160,000. At the Vancouver, Washington residence owned by co-defendant Nguyen, officers found another sophisticated marijuana growing site operated by Tran with 238 marijuana plants.
Tran initially claimed to be growing marijuana for 10 people under the Oregon Medical Marijuana Program (OMMP). However, an OMMP representative advised law enforcement that Tran was not registered to grow marijuana for anyone other than himself and that the locations he used were not registered with OMMP as authorized marijuana grow sites.
“This case is another example of criminals exploiting state medical marijuana programs to disguise drug trafficking and money laundering operations,” said U.S. Attorney Amanda Marshall. “This defendant concealed his illegal drug cultivation and distribution business behind state medical marijuana cards. He concealed his illegal proceeds in fraudulent real estate transactions. The jury who heard this case saw through those lies and concluded the defendant is a drug dealer and a fraud. The sentencing judge imposed an appropriate sentence for his illegal conduct.”
This case was investigated by the Multnomah County Sheriff’s Office, the Regional Organized Crime Narcotics Task Force, the Clark Skamania Drug Task Force, and the Federal Bureau of Investigation (FBI). The case was prosecuted by Assistant U. S. Attorneys Jennifer Martin, Robert Nesler and AnneMarie Sgarlata.
Pittsburgh Man Sentenced to 9 Years in Prison for Distributing Child PornographyRead the Press Release
PITTSBURGH, Pa. - A resident of Allegheny County has been sentenced in federal court to 108 months imprisonment, to be followed by 10 years of supervised release, on his conviction of Distribution of Material Depicting the Sexual Exploitation of a Minor, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on James W. Vertullo, 51.
According to information presented to the court, on or about Feb. 19, 2012, and Feb. 26, 2012, Vertullo distributed images in computer graphics files containing material depicting the sexual exploitation of minors, as well as knowingly received visual depictions of minors engaged in sexually explicit conduct by computer. It was also alleged that on or about Feb. 29, 2012, Vertullo possessed visual depictions, namely, images and videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Immigration and Customs Enforcement, Homeland Security Investigations for the investigation leading to the successful prosecution of Vertullo.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Pittsburgh Man Convicted on Firearms Violations Sentenced to 92 Months in PrisonRead the Press Release
PITTSBURGH, Pa. - On Thursday, April 11, 2013, Ebon P. D. Brown, a/k/a "E-Murder" was sentenced in federal court to 92 months of incarceration on his conviction of violating federal firearm laws, United States Attorney David J. Hickton announced today.
Brown, 28, was tried before United States District Judge Joy Flowers Conti in Pittsburgh.
According to Assistant United States Attorney Ross E. Lenhardt, who prosecuted the case, the evidence presented at trial established that Pittsburgh Police Impact Unit Detectives observed Brown removing an object from his waistband and hiding it under his seat. The object was determined to be a 9mm semiautomatic handgun loaded with 10 rounds.
The defendant's tattoos include "E Murder 187" on his arm and two smoking semiautomatic handguns on his back with "crimeythugs.com" written between them. As shown by the recent 2010-2011 ABC television show "Detroit 187" about that city's leading homicide investigators, 187 is a common street term for murder derived from section 187 of the California Penal Code. The defendant's criminal history includes juvenile arrests, starting at the age of 13, for assault, credit card fraud, heroin possession and possession of a pistol with the serial number obliterated. As an adult, Brown has had felony drug convictions, including for the Delivery of Heroin, in the Allegheny County Court of Common Pleas. The defendant's girlfriend Brittany McCoy bought the 9mm pistol Brown was found to have possessed while the defendant was working to be released from federal prison in New Jersey. The defendant was serving a sentence there as a result of his federal convictions on a federal heroin distribution charge and carrying a loaded .40 caliber handgun during his drug trafficking.
The defendant recently finished serving a 14-month sentence for violating his federal supervised release on that prior federal case.
Judge Conti noted that Brown had a serious criminal record that required her to impose a lengthy sentence to protect the public.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Ebon "E-Murder" Brown, with valuable assistance from the Allegheny County Department of Laboratories and the United States Probation Office.
Pittsburgh Man Conspired to Falsify Firearms Records to Illegally Obtain GunsRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh pleaded guilty in federal court to a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.
Eric Beverly, 20, pleaded guilty to one count before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that from in or around June 2012, and continuing thereafter to on or about July 27, 2012, Beverly conspired with a known individual to falsify firearms transaction records in connection with the purchase of two firearms. Specifically, the individual indicated on the ATF purchase records that the firearms were being purchased for herself when, in truth, the firearms were being purchased for Beverly, who was prohibited from purchasing and possessing firearms due to his age.
Beverly was one of seven individuals charged in February 2013 as part of a Western Pennsylvania law enforcement initiative to vigorously enforce federal and state firearms laws that target prohibited possessors.
Judge Ambrose scheduled sentencing for Aug. 13, 2013, at 11:00 a.m. The law provides for a total sentence of five 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 Charles A. Eberle is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Eric Beverly. This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
Pittsburgh Man Admits Possessing Powder Cocaine and CrackRead the Press Release
PITTSBURGH, Pa. - An Allegheny County resident has been convicted of violating federal narcotics trafficking laws, United States Attorney David J. Hickton announced today.
Edward Harris, 38, of Pittsburgh, pled guilty during a hearing conducted by United States District Court Judge Maurice B. Cohill, Jr., to possessing over 100 grams of powder cocaine on June 18, 2010, with intent to distribute. Harris also pled guilty to possessing over five grams of crack cocaine on January 27, 2011, with intent to distribute. Both crimes were committed in Allegheny County.
Judge Cohill scheduled sentencing to occur on Aug. 7, 2013, at 11:00 a.m.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Pittsburgh Bureau of Police conducted the investigation leading to the conviction in this case.
Philadelphia Man Sentenced for False Claim of Explosives on A PlaneRead the Press Release
PHILADELPHIA - Kenneth W. Smith, Jr., 26, of Philadelphia, PA, was sentenced today, in federal court, to 15 months in prison for calling in a hoax regarding explosives on a commercial aircraft on September 6, 2012. Smith was targeting a male passenger on a flight from Philadelphia to Dallas, Texas when called police to falsely report that the individual had carried liquid explosives on to the plane. Smith’s motive, according to his statement to authorities after his arrest, was to “avenge” a female that both men knew. As a result of Smith’s actions, the airplane was turned around mid-air and law enforcement agents stormed the plane.
Smith pleaded guilty on January 14, 2013 to malicious false information about an explosive, and false information and hoaxes. In addition to the prison term, U.S. District Court Judge Gene E.K. Pratter ordered Smith to: write a letter of apology to each of the passengers on board the plane, pay restitution of more than $17,000 to USAir, law enforcement and the victims on the plane for costs associated with his crime, pay $200 in special assessments, and complete three years of supervised release to include 100 hours of community service per year.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, the Philadelphia Police Department, the Transportation Security Administration, and the U.S. Department of Transportation Office of Inspector General. It was prosecuted by Assistant United States Attorney Jennifer Arbittier Williams.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Pennsylvania Man Sentenced for Taking Migratory Waterfowl Without A Proper LicenseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pennsylvania man, convicted of the Unlawful Taking of Migratory Waterfowl, was sentenced on April 15, 2013 by U.S. Magistrate Judge John E. Simko.
Mike Evangelista, age 43, was sentenced to 3 years of probation; $4,500 in restitution (joint and several with co-defendants) to the U.S. Fish and Wildlife Service for the cost of their undercover hunt; $200 in restitution to South Dakota State Game, Fish and Parks Department for the illegally taken waterfowl; a $500 fine; and a $25 special assessment.
Evangelista was indicted in April of 2012 by a federal grand jury for Conspiracy to Violate the Lacey Act, Failure to Lawfully Tag Migratory Birds, and aiding and abetting the Illegal Sale and Possession of Wildlife in Violation of Migratory Bird Act. He pled guilty to a Superseding Information charging him with Aiding and Abetting the Unlawful Taking of Waterfowl Without a Proper License on April 15, 2013.
The conviction stems from an incident that occurred in the fall of 2009 in Marshall County, South Dakota when Evangelista, while employed as a waterfowl guide for Windy Hill Outfitters, aided and abetted the unlawful taking of ducks by three female hunters who did not have valid hunting licenses.
The investigation was conducted by the U.S. Fish & Wildlife Service. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Northampton Man Sentenced to 18 Months in Prison for Attempted Enticement of Minor to Produce Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Northampton County man was sentenced today in Harrisburg before U.S. District Court Judge Christopher C. Conner for attempting to entice a minor to produce child pornography.
Alan Stroppa was sentenced to an 18-month term of imprisonment, 10 years of supervised release and a $100 fine.
According to United States Attorney Peter J. Smith, in January 2012, Stroppa, age 46, of Bath, Pennsylvania, began communicating with an undercover United States Postal Inspector in Harrisburg who presented himself online as a 12-year-old girl. For several months Stroppa regularly communicated via the internet and text messages with the “girl.” Stroppa attempted to entice the “girl” to produce a sexually explicit video and photographs of herself. Pursuant to Stroppa’s requests, the purported videos were sent through the mail to a Northampton business. On June 14, 2012, Stroppa accepted the package when delivered and was arrested shortly thereafter by federal and local law enforcement.
Stroppa was indicted in July 2012 and pleaded guilty in November 2012.
The case was investigated by the United States Postal Inspection Service with the assistance of the Office of Homeland Security Investigations and Northampton Police Department. Assistant United States Attorney Michael A. Consiglio prosecuted the case.National Crime Victims' Rights Week 2013Read the Press Release
New Challenges. New Solutions
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 will honor 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 will join 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.
Please join us on Wednesday, April 24 at 2 p.m. in Darden Towe Park to honor those who have advanced the cause of victims’ rights – an effort that impacts us all.
This event is 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.
Mortgage Broker Pleads Guilty in Two Separate Fraud Schemes Resulting in Losses of over $2 MillionRead the Press Release
Falsified Home Buyers’ Information to Generate Fraudulent Loan Applications
in Order to Collect Commissions, Origination and Broker’s FeesGreenbelt, Maryland - Emeka Udeze, age 38, of Bowie, Maryland, pleaded guilty today to conspiring to commit wire fraud in connection with two separate mortgage fraud schemes which resulted in over $2,013,478 of actual losses to mortgage lenders.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge David Beach of the United States Secret Service – Washington Field Office; Inspector General Jon T. Rymer of the Federal Deposit Insurance Corporation; Special Agent in Charge Joe Clarke of the Housing and Urban Development Office of Inspector General - Office of Investigations; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Gene E. Morrison, Washington Field Office, U.S. Department of Justice Office of the Inspector General; Howard County Police Chief William McMahon; Acting Special Agent in Charge Lisa Quinn of the United States Secret Service – Baltimore Field Office; and Howard County State’s Attorney Dario Broccolino.
According to his plea, Udeze was a licensed mortgage broker who worked at various companies, including Newgate Mortgage, owned by co-defendant Shola Risikat Balogun, and EWA Mortgage. Udeze also registered a Maryland company called E&T Consulting, Inc., which he claimed was established to provide general services, among other things.Udeze admitted that in both schemes, he submitted fraudulent mortgage loan applications for buyers, inflating the buyer’s income and creating bogus employment information in an effort to qualify these individuals for loans that they otherwise were unqualified to secure. In some cases, no mortgage payments were made and the property went swiftly into default. In other cases, the borrowers attempted to make mortgage payments for a period of time until they could no longer make payments.
In the first scheme, from at least 2006 through at least December 2008, Udeze, Balogun and others contacted individuals who wished to purchase homes. The buyers, who typically had moderate to low incomes, provided the conspirators with accurate income and employment information. Udeze and others then submitted fraudulent loan applications on behalf of the buyers, inflated the buyer’s income and created bogus employment information in an effort to secure the loan. Udeze, Balogun, and others profited from these fraudulent transactions by collecting origination fees, commissions, yield spread premiums and broker’s fees from each loan that closed.
In a separate scheme, from May 2009 to January 2010, Udeze, co-defendant Niesha Williams, and others, arranged for individuals to buy and sell real estate so they could improperly obtain money from the transactions. Udeze, Williams and others submitted fraudulent loan applications, created multiple versions of settlement statements to deceive lenders, lien holders, buyers and sellers; and arranged for proceeds from mortgage transactions to be disbursed to shell companies created by Udeze and others in order to disguise that the money was really for their benefit. Co-conspirators also failed to make required disbursements of settlement funds to pre-existing lien holders, funneling the money instead to themselves.
For example, Udeze made arrangements for an individual, C.H., to purchase 4853 Brookstone Terrace, Unit 29, Bowie, Maryland 20720 from an individual with the initials D.H. Udeze also had a personal relationship with C.H., who trusted him. Udeze admitted that he prepared and sent a fraudulent loan application to the lender, which included false statements about C.H.’s employment, income, her bank accounts, and the bank account balances, so that C.H. could obtain a loan of approximately $250,000 and purchase the property for $255,000. Udeze and Williams prepared a false HUD-1 Settlement Statement for C.H. and the lender, which falsely represented that the purchase price of the property was $255,000. Udeze knew that Williams had prepared a second HUD-1 Settlement Statement for D.H., which listed a sales price of $200,000. The difference between the loan amount and the true sales price was $50,000 in extra cash at settlement. A total of $31,000 was sent from the title company’s escrow account to E&T Consulting, Inc., for Udeze’s benefit and Williams received $10,000 from the sale. These payments were not listed on the HUD-1 Settlement Statement.
As part of his plea agreement, Udeze will be required to pay restitution and forfeit $2,013,478, the amount of actual losses suffered by the mortgage lenders as the result of the at least 20 transactions Udeke brokered in furtherance of the fraud schemes.
Udeze faces a maximum penalty of 30 years in prison and a $1 million fine on each of the two counts of conspiracy to commit wire fraud. U.S. District Judge Peter J. Messitte did not set a date for sentencing.
Shola Risikat Balogun, age 46, of Upper Marlboro and Niesha Williams, age 33, of Fort Washington, Maryland, each previously pleaded guilty to their role in the fraud schemes. No sentencing date has been scheduled for them at this time.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage-Fraud/index.html.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Monroe Lawyer Pleads Guilty to False Tax Claim ChargeRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced that lawyer Francis C. Broussard, 53, of West Monroe, La., pleaded guilty before U.S. District Judge Robert G. James Friday to making false, fictitious, and fraudulent claims to the Internal Revenue Service (IRS) in an attempt to receive more than $9.7 million in tax refunds.
According to the Stipulated Factual Basis in the plea agreement, Broussard, who has been licensed to practice law in Louisiana since 1986, had his accountant prepare his 2005 through 2007 tax returns, but the defendant never filed them. Broussard did present the documents to various financial institutions in efforts to obtain personal loans and other types of financing. In 2009, the defendant went to a different tax preparer to have his personal tax returns prepared for 2005 through 2008. The defendant brought already-prepared federal tax returns along with a separate piece of paper with a set of numbers on it. The defendant instructed the preparer to use the set of numbers on Forms 1099-Original Issue Discount (OID) and on the Schedule B, Interest Income section of the form. The defendant’s fraudulent claim is based on the OID interest income. Broussard claimed that he received Forms 1099-OID from four banks. All four banks denied they issued any forms to Broussard for his tax returns.Additionally, the Stipulated Factual Basis states that IRS agents interviewed Broussard in February 2009 regarding the tax returns he submitted for 2005, 2006, and 2008. The 2007 false return reflecting a multi-million dollar return was mailed after IRS agents contacted the defendant. Broussard did not receive the requested refunds.
Broussard faces a maximum penalty of five years in prison, a $250,000 fine, and one year of supervised release for the false claim count.
The IRS criminal investigations unit conducted the investigation. Assistant U.S. Attorney Cytheria D. Jernigan is prosecuting the case.
Mexican National Sentenced for Federal Immigration Violation in EDTXRead the Press Release
Department of Justice
Office of Public AffairsMARSHALL, Texas – A 36-yesr-old Durango, Durango, Mexico, man has been sentenced to federal prison for immigration violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Juan Gallardo-Simental pleaded guilty on Nov. 15, 2012, to being unlawfully present in the United States after having been previously deported, and was sentenced to 14 months in federal prison on Apr. 19, 2013, by U.S. District Judge Rodney Gilstrap.
According to information presented in court, on Aug. 28, 2012, Gallardo was found at the Harrison County jail by federal agents. Further investigation revealed Gallardo was unlawfully in the United States after having been deported following a battery conviction in Benton County, Arkansas, in 2006. Gallardo was indicted by a federal grand jury on Sep. 12, 2012 and charged with immigration violations. Gallardo will be deported following the completion of this prison sentence
This case was investigated by the Harrison County Sheriff’s Office and the Homeland Security Investigations HSI-ICE and prosecuted by Assistant U.S. Attorney Allen Hurst.
Media AdvisoryRead the Press Release
Montgomery, Alabama - U.S. Attorney George L. Beck, Jr., and Drug Enforcement Administration ASAC Clay Morris will jointly hold a press conference to kick off the campaign on the most recent Prescription Drug Take Back/Medical Abuse Program. A press release will be provided at the conference. The press conference will be held on Wednesday, April 24, 2013, at 10:30 a.m., at the U.S. Attorney’s Office, 131 Clayton Street, Montgomery, Alabama, and the media is invited.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Mechanicsburg Doctor and Owner of Two Medical Facilities Pleads Guilty in Federal CourtRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Mechanicsburg doctor and owner of two Central Pennsylvania medical facilities pleaded guilty today in federal court in Harrisburg before U.S. District Judge Christopher C. Conner.
According to United States Attorney Peter J. Smith, Dr. Timothy Clark, age 44, is a medical doctor and pulmonologist and the sole owner of Central Pennsylvania Pulmonary Associates(CPPA) and Sleep Disorder Centers of Central Pennsylvania. In June 2012 and again in July, Clark was indicted by a federal grand jury in Harrisburg in separate indictments.
In June 2012, Clark was indicted on charges that from July 2010 through December 2011, as the owner of CPPA, and the trustee of the CPPA employee 401(k) Plan, he withheld employee 401(k) contributions and failed to deposit the withheld funds into their 401(k) Plan. Clark instead maintained the employee 401(k) contributions in bank accounts he controlled. Clark’s employees lost approximately $25,000 of their retirement funds.
In July 2012, Clark was indicted on charges that from December 2007 through September 26, 2008, Clark, who provided critical care services to patients of Holy Spirit Hospital, intentionally inflated the amount of time the healthcare providers he employed spent with each patient, thereby fraudulently inflating the health insurance claims Clark submitted to Medicare, Highmark, Inc., and Capital Blue Cross. The dollar amount of the fraudulent claims exceeded $500,000. In the indictment’s six money laundering counts, Clark was charged with transferring approximately $103,000 obtained through the healthcare fraud to CPPA payroll and money market accounts.
Today, Clark pleaded guilty to embezzlement from an employee benefit plan, executing a scheme to defraud healthcare benefit programs in connection with the delivery and payment of healthcare benefits and money laundering.
Clark is scheduled for sentencing on July 29, 2013.
The case involving the embezzlement from an employee benefit plan was investigated by the United States Department of Labor, Employee Benefits Security Administration, the United States Department of Labor, Office of Inspector General, the United States Department of Health and Human Service, Office of Inspector General, and the Federal Bureau of Investigation.The case involving the health care fraud and money laundering was investigated by the Pennsylvania Office of Attorney General, Insurance Fraud Section; the United States Department of Health and Human Services, Office of Inspector General; the Internal Revenue Service, Criminal Investigations; and the Federal Bureau of Investigation.
Both cases are being prosecuted by Assistant United States Attorney Joseph J. Terz.
Man Who Owned Strip Club in Salina, Kan. Sentenced for Tax EvasionRead the Press Release
TOPEKA, KAN. – A man who owned a strip club in Salina has been sentenced to three years federal probation for filing false tax returns and underpaying his federal income taxes, U.S. Attorney Barry Grissom said today. He also was ordered to pay $153,510, the full amount of taxes he owes.
Kirk Roberts, 49, Salina, Kan., pleaded guilty to three counts of filing false income tax returns for tax years 2006, 2007 and 2008. In his plea, he admitted that while he was the owner of Wild, Wild West, Inc., a strip club in Salina, he failed to report cash receipts totaling $537,942. As a result, he underpaid his federal income taxes by $153,510.
The club collected $3 to $5 cash per night per customer for door cover charges. It also collected between $25 and $50 per night in cash for house fees paid by dancers so they could dance on stage, as well as $35 per half hour in cash paid by dancers for using private rooms or “champagne rooms.”
The cash from the fees was not recorded on the business’ cash register. Rather than depositing the cash into the business’ bank account, Roberts deposited the money into a personal account.
Grissom commended the Internal Revenue Service and Assistant U.S. Rich Hathaway for their work on the case.
Local Man Pleads Guilty to Counterfeit Check ChargesRead the Press Release
St. Louis, MO - KENTON BINKHOLDER, St. Louis, admitted with his plea to producing checks of a phony company and passing them in the St. Louis area in July of 2012.
Binkholder appeared before U.S. District Judge Rodney W. Sippel and is in custody awaiting sentencing. Sentencing has been set for July 18, 2013.
This charge carries a maximum penalty of 10 years in prison and/or a fine up to $250,000.
The case was investigated by the St. Louis Police Department and the U.S. Secret Service. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Lauderdale County Doctor Sentenced for Health Care and Wire FraudRead the Press Release
FLORENCE – A federal judge today sentenced a Lauderdale County physician to one year and a day in prison for health care fraud totaling about $1 million in connection with billing a health insurer and Medicare for non-reimbursable cosmetic skin treatments, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein.
U.S. District Judge Inge P. Johnson sentenced DIANA K. McCUTCHEON, 55, of Killen, on four counts of health care fraud and two counts of wire fraud. Judge Johnson ordered McCutcheon to pay of restitution of $990,389 to Blue Cross Blue Shield of Alabama and Medicare. She also must pay the same amount to the government as proceeds of illegal activity. McCutcheon agreed to the forfeiture in her plea agreement with the government. She pleaded guilty to the charges in November.
"This defendant carried on a scheme for several years, fraudulently billing private and public insurance plans for payments she was not entitled to," Vance said. "That kind of fraud drives up health care and insurance costs for everyone. It will not be tolerated," she said.
"This is not a victim-less crime'" Schwein said. "Every person who struggles to pay for health care benefits; every older person who worries about Medicare's ability to cover them; every taxpayer who helps fund these programs are all victims. We will continue to work together with our partners to identify and stop those who would line their own pockets with taxpayer money – those who seek to benefit at the expense of our health care system, our economy, and our collective well-being," he said.
McCutcheon conducted her fraud through her medical clinics in Elgin and Lexington in North Alabama. According to court records, she operated a scheme to defraud Blue Cross Blue Shield and Medicare between 2007 and 2011 by fraudulently billing for the removal of multiple skin lesions on patients who had received cosmetic laser and other treatments for various skin conditions. The conditions included sun spots, age spots and wrinkles and were not covered by insurance.The FBI, with assistance from the U.S. Department of Health and Human Services, investigated the case. Blue Cross Blue Shield of Alabama also assisted in the investigation. Assistant U.S. Attorneys Russell E. Penfield and Ramona Albin are prosecuting the case.