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Monday 4 March 2013
Lower Brule Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota man convicted of Abusive Sexual Contact was sentenced on February 25, 2013 by U.S. District Judge Roberto A. Lange. Merle Wilson, age 56, was sentenced to 15 months in custody and 5 years of supervised release. Wilson is also to pay $100 to the Victim Assistance Fund.
Wilson was indicted for Sexual Abuse and Abusive Sexual Contact by a federal grand jury on August 14, 2012. He pled guilty to Abusive Sexual Contact on November 30, 2012. The charge stems from an incident occurring on July 30, 2012 in which Wilson and the victim were consuming alcohol. The victim realized she was intoxicated and upon arriving at her home, passed out on the couch in the living room area, fully dressed. Wilson came to her home mid-morning and saw the victim passed out on the living room couch. The victim awoke to find herself naked from the waist down with Wilson on top of her. At no time did the victim consent to Wilson taking off her clothes or engaging in any type of sexual contact.
The investigation was conducted by the Federal Bureau of Investigation and Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Wilson was immediately turned over to the custody of the U.S. Marshal following sentencing.
Liberty Man Charged with Attempted Bank Robbery after Shooting, High-speed ChaseRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Liberty, Mo., man was charged in federal court today with attempted bank robbery after being shot by an employee at a Trimble, Mo., bank and leading law enforcement officers on a high-speed chase.
Michael Stephen Oliva, 34, of Liberty, was charged in a federal criminal complaint filed in the U.S. District Court in Kansas City, Mo. Oliva, who has not yet had a court appearance, remains hospitalized and in federal custody pending a detention hearing.
According to an affidavit filed in support of today’s criminal complaint, Oliva entered First Security Bank, 202 U.S. Hwy. 169, Trimble, at about 1:25 p.m. Friday, March 1, 2013. Oliva allegedly pulled on a black mask, pointed what appeared to be a handgun (but was later found to be a realistic plastic replica) at a bank employee and ordered her to give him the money in her teller drawer. The employee instead dropped to the floor behind the teller stations and began crawling toward another bank employee, shouting for help. As she was crawling, the affidavit says, she saw Oliva lean over the teller station and point his handgun at her. She grabbed a plastic trash can and tossed it over the teller counter toward Oliva; however, Oliva had moved around the end of the teller stations and was directly behind her.
The second bank employee, who was in an office, heard the shouts for help. He saw Oliva pointing a handgun at the first bank employee, the affidavit says, and retrieved a Smith & Wesson .357 revolver. He fired two rounds at Oliva. The first shot struck Oliva in the jaw, according to the affidavit, and he turned and started toward the bank’s front doors. No money was taken during the attempted robbery.
After Oliva left the bank, the affidavit says, the first employee got up from the floor and saw him staggering behind a nearby building. She then saw a silver car drive very fast on Hwy. 169 past the bank, and called 9-1-1. Oliva had left a sizable trail of blood for about 150-200 feet that led to a handicapped parking space in the nearby building’s parking lot.
According to the affidavit, Trimble police officers located Oliva’s Dodge Stratus and began pursuing him at speeds approaching 100 miles per hour. Officers deployed spike strips and the vehicle stopped. When officers approached the car, Oliva got out of the vehicle and asked, “You guys going to let me die?” Officers noted that Oliva appeared to have suffered a gunshot wound to the jaw or chin and there was a large amount of blood on Oliva and in his vehicle.
Oliva was placed under arrest and transported to an emergency room for medical treatment.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the Trimble, Mo., Police Department, the Clinton County, Mo., Sheriff’s Department and the FBI.Leader in a Sophisticated Bank Fraud Scheme Sentenced to 7 Years in PrisonRead the Press Release
Recruited Bank Employees and College Students to Participate in the SchemeGreenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Bolarinwa Adeyale, a/k/a “Bola,” age 23, of Greenbelt, Maryland, today to seven years in prison, followed by five years of supervised release, in connection with a scheme to use stolen credit card convenience checks and counterfeit checks to defraud financial institutions. Adeyale was convicted by a federal jury on February 27, 2012, of conspiracy to commit bank fraud, two counts of bank fraud and aggravated identity theft.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; and Special Agent in Charge David Beach of the United States Secret Service – Washington Field Office.
According to evidence presented at the five day trial, in the fall of 2007 Adeyale; Okechukwo Otuya a/k/a Oke and Waffi; Oluwadamilola Feyisetan, a/k/a Dami (Dami); Adeniyi Adebiyi, a/k/a Niyi (Niyi); Alexander Diya and others devised a scheme to defraud Bank of America by depositing stolen credit card convenience checks into legitimate Bank of America accounts and withdrawing the money before the bank learned that the checks were not authorized. Adeyale, Otuya and Dami were among the leaders in the scheme. Adeyale, Otuya, Dami and Niyi obtained the convenience checks by stealing them from homeowners’ mailboxes in Montgomery, Howard and Prince George’s Counties. Adeyale and others also recruited college students to permit the use of the students’ bank accounts (the “compromised accounts”) to deposit stolen credit card convenience checks and make cash withdrawals from the accounts after the checks cleared. Adeyale and others also recruited bank employees to provide account information for “high end” bank customers, including the account name and numbers, customer’s signature cards or previously negotiated checks with appropriate signatures, and the customer’s address. Adeyale and others then used that information to create fraudulent checks for those accounts.
According to trial evidence, as a result of the scheme, the total amount of fraudulent deposits made by the conspirators from over 50 compromised bank accounts is over $1.2 million. The actual loss to Bank of America is over $600,000.
Otuya, age 31, of Laurel, Maryland, was sentenced to eight years in prison and was ordered to pay restitution, with the exact amount to be determined. Adebiyi, age 28, of Upper Marlboro, Maryland, was sentenced to four years in prison and ordered to pay restitution of $148,000. Feyisetan, age 24, of Laurel; Alexander Omotomiwa Diya, age 25, of Bowie; and Taiwo Akinyeke, age 28, of Laurel, were sentenced to 30 months, 28 months, and 15 months in prison, respectively, and were ordered to pay restitution of $33,135.58, $4,250, and $48,555.85.
In addition, co-conspirators Charles G. Richardson, Jr., age 26, of Capitol Heights, Maryland, was sentenced to 15 months in prison and ordered to pay restitution of $7,330.12; Oladipo Ayodeji, age 23, of Bowie, was sentenced to 14 months in prison in prison and ordered to pay restitution of $24,543.47; and Kennika Freeman, age 23, of Greenbelt, and Malia Forrester, age 31, of Millersville, Maryland, were each sentenced to five years’ probation. Marquis Borden, age 25, of Laurel, Maryland has pleaded guilty to his participation in the scheme and is awaiting sentencing.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
United States Attorney Rod J. Rosenstein thanked the U.S. Postal Inspection Service and U.S. Secret Service for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Robert K. Hur, who prosecuted the case.
Laurel Man Pleads Guilty to Producing Child PornographyRead the Press Release
Secretly Recorded a 13 Year Old Girl in a BathroomGreenbelt, Maryland – Frank Alan Klukosky, age 43, of Laurel, Maryland, pleaded guilty today to producing child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Richard McLaughlin of the Laurel Police Department; Howard County Police Chief William McMahon; and Elton Malone, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Special Investigations Branch.
According to the plea agreement, in June 2012, a federal probation officer discovered images and videos of child pornography on the cell phone of a registered sex offender on federal probation. Further investigation revealed that on June 24, 2012 Klukosky drove to the registered sex offender’s home in Laurel with an SD card that contained at least 120 images and six videos of child pornography. Klukosky then helped the registered sex offender load those images and videos onto his computer and cell phone.
On October 23, 2012 the FBI executed a search warrant at Klukosky’s home and seized video cameras, key fob cameras, computers, an external hard drive and other computer accessories. The external hard drive contained approximately 2,000 images and 16 videos of child pornography, including 11 videos depicting a 13 year old girl in a bathroom. The videos were taken with hidden key fob cameras. The videos were recorded on at least 10 occasions and depict the victim in stages of undress. In at least one of the videos, Klukosky is recorded while setting up or taking down the camera.
As part of his plea agreement, Klukosky 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).
Klukosky and the government have agreed that if the Court accepts the plea agreement Klukosky will be sentenced to 20 years in prison followed by up to a lifetime of supervised release. Chief U.S. District Judge Deborah K. Chasanow has scheduled sentencing for May 20, 2013 at 1:00 p.m.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from 10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, the Laurel and Howard County Police Departments and HHS-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi O’Malley, who is prosecuting the case.
Kent Man Charged with Drug CrimesRead the Press Release
A federal grand jury returned a three-count indictment charging Mesawn Smith, aka "Butter", age 31, of Kent, Ohio, with distribution of crack cocaine and possession with intent to distribute crack cocaine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that on or about May 15 and May 25, 2012, Smith distributed less than 28 grams of crack cocaine. The indictment further charges that on or about November 2, 2012, Smith possessed with the intent to distribute more than 28 grams of crack cocaine.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives - Youngstown Field Office and the Akron Police Department. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Johnstown Woman Admits Illegally Purchasing Guns for Another PersonRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., pleaded guilty in federal court to a charge of making false statements to a federally licensed firearms dealer, United States Attorney David J. Hickton announced today.
Kimberly G. Yarnavick, 47, pleaded guilty to three counts before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on July 15, 2009, in conjunction with the purchase of a Hi Point pistol; on Feb. 5, 2010, in conjunction with the purchase of a Phoenix pistol; and on March 3, 2010, in conjunction with the purchase of a American Arms pistol, Yarnavick knowingly made false statements in an effort to deceive Sporting Goods Discounters, a federally licensed firearms dealer. Yarnavick represented she was the actual buyer of the firearms when, in fact, she was purchasing the firearms on behalf of another person.
Judge Gibson scheduled sentencing for Aug. 1, 2013, at 9:30 a.m. The law provides for a total sentence of 30 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Pending sentencing, the court continued Yarnavick on bond.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Johnstown Police Department conducted the investigation that led to the prosecution of Yarnavick.
According to Mr. Hickton, Yarnavick is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Iranian Citizen and U.S. Citizen Residing in Louisville, Kentucky, Holding an Iranian Passport, Sentenced in Plot to Export Aircraft and Aircraft Parts to IranRead the Press Release
– Conspired to violate the U.S. embargo against Iran
LOUISVILLE, Ky. - David J. Hale, U.S. Attorney for the Western District of Kentucky; Lisa Monaco, Assistant Attorney General for National Security; and Perrye Turner, Special Agent in Charge, Federal Bureau of Investigation, Louisville Division, announced the sentencings today, of two men to charges related to unlawful export of aircraft and aircraft parts from the United States to Iran. One of the defendants, Hamid Asefi, age 67, is a citizen and resident of the Republic of Iran. The other, Behzad Karimian, also known as “Tony” Karimian, age 52, is a United States citizen living in Louisville, Kentucky who holds a valid Iranian passport and is employed as a Mesaba Airlines Pilot. Asefi was sentenced to 23 months in prison, and Karimian was sentenced to 46 months in prison by Chief Judge Joseph H. McKinley, Jr. in United States District Court. The defendants pleaded guilty in Louisville, before Magistrate Judge James D. Moyer on December 3, 2012. The two-count Indictment was returned by a Federal Grand Jury meeting in Louisville on August 2, 2012 and unsealed prior to their change of pleas hearings.
Hamid Asefi and Behzad Karimian were both charged with conspiracy to violate and violation of the International Emergency Economic Powers Act for exporting, selling, or causing the export or sale of aircraft and aircraft parts without first having obtained the required license from the U.S. Department of Treasury. Asefi made his initial appearance in U.S. District Court in Louisville, Kentucky on June 1, 2012. Karimian was arrested and made his initial appearance in U.S. District Court in Louisville, Kentucky on June 6, 2012.
Asefi is the principal officer of Aster Corp Ltd., an Iranian company with offices in both Iran and the United Kingdom. The Indictment charges that, beginning as early as August 2007 and continuing through April 2011, Asefi used the United Kingdom office of Aster to serve as a transshipment point to facilitate shipment of goods from the United States to Iran; Asefi used Aster to facilitate the shipment of goods from the United States to Iran through third party countries; Asefi sent requests on behalf of Iranian entities to Karimian for purchases of aircraft and aircraft parts located in the United States or owned by United States persons; and Karimian knowingly and willfully made inquiries, placed orders, and attempted to facilitate the purchase of aircraft and aircraft parts located in the United States and owned by United States persons on behalf of defendant Asefi and persons in Iran.
Asefi and Karimian pleaded guilty to Count One of the Indictment and admitted in court that they acted with knowledge and intent to violate the Iran embargo when on September 27, 2007, Asefi and Karimian sent emails to establish a “profitable business collaboration” for the purpose of procuring aircraft and aircraft components for end-users in Iran. They further admitted that on or about October 1, 2009, Asefi sent an email to Karimian which outlined the terms of delivery and payment on future transactions with Iran Air and stated “…remember that, only US Embargo has brought this chance and benefit to us, to get involved in these deals….”
Further, defendants Asefi and Karimian pleaded guilty to Count Two of the Indictment, and admitted that beginning in September 2009 and continuing through April 2010, they violated the embargo against Iran by exporting and causing the export of services related to the sale of a G.E. Aircraft Engine Model CF6-50C2, as well as attempting the procurement of helicopters manufactured by Bell Helicopter, from the United States to Iran, without first having obtained the required authorizations from the U.S. Department of Treasury. All of the aircraft and aircraft parts involved in this case were intended for civilian use.
“The investigation and prosecution of national security cases is the top priority of the Department of Justice and my Office,” stated David J. Hale, the U.S. Attorney for the Western District of Kentucky. “We view the circumvention of Iranian export control laws as a very serious matter. The FBI should be commended for its excellent work in disrupting this international scheme and bringing these men to justice.”
The International Emergency Economic Powers Act authorizes the President of the United States to impose economic sanctions on a foreign country when the President declares a national emergency with respect to a national security threat. On March 15, 1995, the President issued an Executive Order declaring the actions and policies of the Government of Iran constituted a national emergency. On May 6, 1995, the President issued an Executive Order imposing the Iran Trade Embargo. On June 23, 2011, the U.S. Department of the Treasury imposed sanctions on Iran Air after designating it as a proliferator of weapons of mass destruction for providing material support and services to Iran’s Islamic Revolutionary Guard Corps.
This case was prosecuted by Assistant United States Attorney Bryan Calhoun of the U.S. Attorney’s Office for the Western District of Kentucky, and Trial Attorney Casey Arrowood of the Counterespionage Section of the Justice Department’s National Security Division. The case was investigated by the Federal Bureau of Investigation, Louisville Division.
Illinois Man Pleads Guilty to Criminal TrespassRead the Press Release
United States Attorney Brendan V. Johnson announced that a Chicago, Illinois man convicted of two counts of Criminal Trespass has pled guilty to the charges and was sentenced on February 27, 2013 by U.S. Magistrate Judge Mark A. Moreno. Steven Nichols, age 42, was sentenced on Count 1 to 30 days in custody and a $5 special assessment to the Victim Assistance Fund. On Count 2, he was sentenced to one year of probation, and ordered to not re-enter the lands of the Rosebud Sioux Indian Reservation.
In the summer of 2011, the Rosebud Sioux Tribe’s Attorney General petitioned the tribal court to bar Nichols, a non-Indian, from entering the lands of the Rosebud Sioux Indian Reservation. On June 10, 2011, Nichols was served with notice of the proceedings. On September 22, 2011, the Rosebud Sioux Tribal Court entered an Emergency Writ of Exclusion barring him from entering the lands of the Rosebud Reservation. On September 22, 2011 the Rosebud Sioux Tribal Council also voted to exclude the Defendant from the Rosebud Reservation. On September 23, 2011, a tribal law enforcement officer served him with the exclusionary order and escorted him off of the reservation.
Tribal law enforcement officers later learned that Nichols had re-entered the reservation. On September 9, 2012 officers apprehended him and again transported him off of the reservation. On January 30, 2013 officers learned Nichols was staying at a residence within the reservation. Officers searched for Nichols and found him hiding in a crawl space of the residence. He was arrested on federal criminal trespass charges and transported off of the reservation and into federal custody.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Tim Maher. Nichols was remanded to the custody of the U.S. Marshal to complete his sentence.
Former Teacher’s Aide Sentenced to 30 Months in Federal Prison on Federal Child Sexual Exploitation ConvictionRead the Press Release
Shanice Adel Lambert Worked in Childress Independent School District
AMARILLO, Texas — A former teacher’s aide in the Childress Independent School District (CISD), Shanice Adel Lambert, was sentenced today by U.S. District Judge Mary Lou Robinson to 30 months in federal prison, following her guilty plea in November 2012 to one count of traveling with the intent to engage in illicit sexual conduct, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Lambert was remanded into custody at the time of her guilty plea, and her custody was continued following the sentencing hearing.
According documents filed in the case, through her employment in the CISD as a teacher’s aide, and through this individual’s association with one of her children, Lambert met “John Doe,” a 15-year-old student at the school where she worked. In February 2012, Lambert engaged in a relationship with “John Doe” which became sexual in nature. On February 11, 2012, Lambert traveled to Altus, Oklahoma, for the purpose, among others, of engaging in illicit sexual conduct with “John Doe.” After arriving in Altus, Lambert rented a motel room and engaged in sexual acts with “John Doe.”
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 U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/ For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the FBI and the Texas Department of Public Safety. Assistant U.S. Attorney Steven M. Sucsy, of the U.S. Attorney’s Office in Lubbock, Texas, and Assistant U.S. Attorney Christy Drake, of the U.S. Attorney’s Office in Amarillo, Texas, prosecuted.
Former North Carolina Builder Pleads Guilty to Tax ObstructionRead the Press Release
William B. Clayton, a residential builder formerly of Corolla, N.C., pleaded guilty today before Judge Terrence W. Boyle to corruptly obstructing and impeding the due administration of the tax laws, the Justice Department and the Internal Revenue Service (IRS) announced.
According to the indictment, Clayton failed to file federal income tax returns over a six-year period, resulting in the assessment of taxes and penalties and the initiation of IRS collection proceedings. Between May 2007 and August 2010, Clayton took steps to obstruct the IRS’s efforts to collect his unpaid tax liabilities, such as concealing property from the IRS and destroying a former property in Corolla that had been acquired by the government. According to court records, in an effort to pay down Clayton’s tax liabilities, the IRS scheduled a public auction of Clayton’s former property. In the days leading up to the auction, Clayton committed, or caused the commission of, various acts of destruction and demolition at the Corolla property, including destroying an outdoor pool deck and pool house, forcibly removing a guest house from the property and transporting it to a non-consenting neighbor’s property, and forcibly removing cabinets, counter tops, a kitchen island, sinks, toilets, and light fixtures.
Clayton’s sentencing hearing is scheduled for May 28, 2013. Clayton faces a maximum potential penalty of three years’ imprisonment, one year of supervised release, and a $250,000 fine.
The investigation of this case was conducted by IRS-Criminal Investigation. The case is being prosecuted by Trial Attorney Adam Hulbig of the Justice Department’s Tax Division.
Former Key West Bank Employee Indicted for Obstruction of Justice and Disclosing Grand Jury InformationRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces the unsealing of an indictment charging Karen Galo (33, Key West) with two counts of obstruction of justice and one count of disclosing the contents of a federal grand jury subpoena to a third party, with the intent to obstruct a judicial proceeding. If convicted on all counts, Galo faces a maximum penalty of 35 years in federal prison.
According to the indictment, on or about October 9, 2008, Galo, in her capacity as an officer of Key West Bank, notified a third party about the existence and contents of two federal grand jury subpoenas related to an investigation into mortgage fraud and money laundering. Galo disclosed these federal grand jury subpoenas to the third party with the intention of obstructing a judicial proceeding.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It will be prosecuted by Assistant United States Attorney Simon Gaugush.
Former Head of Yonkers Republican Party Pleads Guilty in White Plains Federal Court to Payroll Tax FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Toni Weirauch, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), and George Venizelos, the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), announced that former City of Yonkers Republican Party Chairman ZEHY JEREIS pled guilty today in White Plains federal court to a one-count Information charging him with failing to pay more than $60,000 in payroll taxes to the IRS. JEREIS surrendered this morning in the federal courthouse in White Plains and was presented and arraigned before U.S. Magistrate Judge George A. Yanthis. The case was assigned to U.S. District Judge Edgardo Ramos, who presided over the guilty plea hearing this morning.
Manhattan U.S. Attorney Preet Bharara stated: “On the very day he is surrendering to serve a prison term of 48 months in connection with his conviction on public corruption charges, Zehy Jereis is back in court admitting he defrauded the IRS. Mr. Jereis has a lot to answer for, and today he begins doing so.”
IRS Special Agent-in-Charge Toni Weirauch stated: “The tax law is very clear – employers are responsible for withholding employment taxes from the salaries of their employees. IRS-Criminal Investigation takes payroll tax fraud seriously because it both deprives the United States government of tax revenue and it reduces the future benefits that employees would otherwise be entitled to, including Social Security and Medicare.”
FBI Assistant Director-in-Charge George Venizelos stated: “Jereis, in two separate cases, has been shown to have used a business plan that included cheating. Businessmen who succeed by committing tax fraud and bribing public officials don’t earn our admiration; they go to prison.”
According to the Information and statements made during today’s proceeding:
JEREIS was a part owner and operator of a combination car wash, gas station, auto repair shop, and convenience store located in Brooklyn, New York, known as Atlantic Gas and Wash, LLC (“Atlantic”). Atlantic employed a substantial number of employees to wash and repair cars and to sell gasoline and other products at the convenience store. As an employer, JEREIS was obligated to withhold and pay to the IRS certain payroll taxes and to file accurate quarterly payroll tax forms that reported the wages and other compensation received by employees of Atlantic, and the taxes withheld.
During the tax years 2007 through 2009, JEREIS paid numerous employees of Atlantic, including undocumented aliens, a total of at least $403,127 in cash and failed to report such cash payments to the IRS. He did so in order to avoid his legal obligation to withhold taxes and to pay approximately $61,678 in payroll taxes to the IRS.
JEREIS, 41, of Scarsdale, New York, pled guilty to one count of aiding and assisting in the preparation of false and fraudulent payroll tax returns. He faces a maximum sentence of three years in prison and a maximum fine of the greater of $250,000 or twice the gross gain derived or loss that resulted from the crime. JEREIS will be sentenced by Judge Ramos on June 4, 2013 at 11 a.m.
On March 29, 2012, after a seven-week jury trial before U.S. District Judge Colleen McMahon, JEREIS was convicted of conspiracy, bribery, and extortion in connection with a scheme to bribe a Yonkers City Councilwoman to flip her vote on two real estate development projects. On November 19, 2012, JEREIS was sentenced in that case to 48 months in prison. He is scheduled to begin serving that sentence today.
Mr. Bharara praised the work of the IRS-Criminal Investigation and the FBI in the investigation.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Perry A. Carbone and Jason P.W. Halperin are in charge of the prosecution.
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Preet Bharara, the United States Attorney for the Southern District of New York, Toni Weirauch, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), and George Venizelos, the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), announced that former City of Yonkers Republican Party Chairman ZEHY JEREIS pled guilty today in White Plains federal court to a one-count Information charging him with failing to pay more than $60,000 in payroll taxes to the IRS. JEREIS surrendered this morning in the federal courthouse in White Plains and was presented and arraigned before U.S. Magistrate Judge George A. Yanthis. The case was assigned to U.S. District Judge Edgardo Ramos, who presided over the guilty plea hearing this morning.
Manhattan U.S. Attorney Preet Bharara stated: “On the very day he is surrendering to serve a prison term of 48 months in connection with his conviction on public corruption charges, Zehy Jereis is back in court admitting he defrauded the IRS. Mr. Jereis has a lot to answer for, and today he begins doing so.”
IRS Special Agent-in-Charge Toni Weirauch stated: “The tax law is very clear – employers are responsible for withholding employment taxes from the salaries of their employees. IRS-Criminal Investigation takes payroll tax fraud seriously because it both deprives the United States government of tax revenue and it reduces the future benefits that employees would otherwise be entitled to, including Social Security and Medicare.”
FBI Assistant Director-in-Charge George Venizelos stated: “Jereis, in two separate cases, has been shown to have used a business plan that included cheating. Businessmen who succeed by committing tax fraud and bribing public officials don’t earn our admiration; they go to prison.”
According to the Information and statements made during today’s proceeding:
JEREIS was a part owner and operator of a combination car wash, gas station, auto repair shop, and convenience store located in Brooklyn, New York, known as Atlantic Gas and Wash, LLC (“Atlantic”). Atlantic employed a substantial number of employees to wash and repair cars and to sell gasoline and other products at the convenience store. As an employer, JEREIS was obligated to withhold and pay to the IRS certain payroll taxes and to file accurate quarterly payroll tax forms that reported the wages and other compensation received by employees of Atlantic, and the taxes withheld.
During the tax years 2007 through 2009, JEREIS paid numerous employees of Atlantic, including undocumented aliens, a total of at least $403,127 in cash and failed to report such cash payments to the IRS. He did so in order to avoid his legal obligation to withhold taxes and to pay approximately $61,678 in payroll taxes to the IRS.
JEREIS, 41, of Scarsdale, New York, pled guilty to one count of aiding and assisting in the preparation of false and fraudulent payroll tax returns. He faces a maximum sentence of three years in prison and a maximum fine of the greater of $250,000 or twice the gross gain derived or loss that resulted from the crime. JEREIS will be sentenced by Judge Ramos on June 4, 2013 at 11 a.m.
On March 29, 2012, after a seven-week jury trial before U.S. District Judge Colleen McMahon, JEREIS was convicted of conspiracy, bribery, and extortion in connection with a scheme to bribe a Yonkers City Councilwoman to flip her vote on two real estate development projects. On November 19, 2012, JEREIS was sentenced in that case to 48 months in prison. He is scheduled to begin serving that sentence today.
Mr. Bharara praised the work of the IRS-Criminal Investigation and the FBI in the investigation.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Perry A. Carbone and Jason P.W. Halperin are in charge of the prosecution.
U.S. v. Zehy Jereis Information
Former Hartford Resident Pleads Guilty to Child Sex Trafficking OffenseRead the Press Release
March 4, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that BRUCE DAMICO, 35, formerly residing in Hartford, Providence, R.I., and Queens, N.Y., pleaded guilty today before United States District Judge Stefan R. Underhill in Bridgeport to one count of sex trafficking of a minor.
“The federal penalties for the sex trafficking of minors are appropriately severe, and the U.S. Attorney’s Office and our law enforcement partners are committed to prosecuting these crimes and seeking lengthy sentences,” stated U.S. Attorney Fein. I commend the FBI and Bloomfield Police for the coordinated effort that has brought this defendant to justice.”
According to court documents and statements made in court, DAMICO recruited, harbored and transported women and girls to engage in prostitution. As a part of his prostitution business, DAMICO posted Internet advertisements offering the women and girls for commercial sex acts, and DAMICO was paid by each woman and girl $100 per day for maintaining the advertisements. DAMICO booked hotel rooms where the women and girls would engage in commercial sex acts, and he transported, or arranged the transportation of, the women and girls to prostitution appointments.
In pleading guilty, DAMICO admitted that between June 2009 and January 2010, his prostitution enterprise knowingly employed a girl who was under the age of 18. DAMICO posted pictures of the minor victim on the Internet to advertise her prostitution services, and he and others working for him transported the minor victim between Connecticut and surrounding states to engage in prostitution.
Judge Underhill has scheduled sentencing for May 24, 2013, at which time DAMICO faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
DAMICO has been detained since his arrest by the Bloomfield Police on January 22, 2010.
This matter is being investigated by the Federal Bureau of Investigation and the Bloomfield Police Department. The case is being prosecuted by Assistant United States Attorney David E. Novick.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Foreign National Convicted in Multi-Million, Multi-State Criminal OperationRead the Press Release
HOUSTON – Sameh Khaled Danhach, also known by many other aliases, has been convicted of all six counts as related to the interstate transportation of stolen goods and obstruction of justice, United States Attorney Kenneth Magidson announced today. The jury returned its verdicts after just an hour of deliberation following a five-day trial.
Danhach, who resides in Houston, is a legal permanent resident of the United States from Lebanon. The evidence demonstrated he was a high-ranking fence involved in a multi-million dollar, multi-state criminal enterprise where he received stolen over-the-counter (OTC) medicine, baby formula, health and beauty supplies and shampoo for later re-packaging and shipping. This criminal enterprise, among other things, engaged in using “boosters,” primarily undocumented Central Americans, to steal over-the-counter medication and baby formula. A “booster” is a criminal who steals goods and merchandise not for personal use but for re-sale to a “fence” for a fraction of its retail value. A “fence” is a person who receives stolen goods and merchandise from “boosters” and others. The “fence” then re-sells the stolen goods and merchandise to third parties for a profit.
The scope of this criminal enterprise ranged from April 2008 to February 2012.
Danhach owned and operated Houston-located SKD Trading Inc. and Lifetime Wholesale Inc., both shell companies operated under several other names used to facilitate their illegal activity. He hired undocumented aliens from Central and South America to travel throughout the United States to steal the OTC, beauty products and baby formula from major retail chain stores such as Target, Wal-Mart, CVS and Walgreens. He facilitated this interstate travel by renting cars for the boosters and by paying the boosters in cash for the stolen merchandise.
To avoid detection by law enforcement, the undocumented aliens would ship the stolen merchandise to Danhach using fraudulent FedEx accounts in his shell company names. As a result of the fraudulent accounts, FedEx suffered a loss of $540,000. A representative from FedEx testified at trial about the sophistication of Danhach’s scheme stating that Danhach and others set up approximately 29 accounts using various names, company names and addresses without paying for any of the shipments.
Once the stolen merchandise arrived at Danhach’s Houston warehouse, he had his “employees,” remove any retail store identifying labels and security features. Danhach would then have the stolen products repackaged and then re-sold to wholesalers across the nation.
A search warrant was executed on March 1, 2012, at Danhach’s Houston warehouse, at which time agents seized criminal ledgers maintained by Danhach. The ledgers specifically showed the stolen merchandise coming into the warehouse, the retail labels on the stolen merchandise being removed and the stolen merchandise being repackaged and shipped back out of the warehouse. At the time of the search, Danhach instructed his co-conspirator to hide a video recording from the warehouse’s security cameras in the warehouse’s ceiling.
Several cooperating witnesses testified on behalf of the United States, including one of his “boosters, ” who admitted that between August 2011 and February 2012, he traveled around the Houston area and the state in cars rented by Danhach, stealing OTC medication and beauty supplies from Wal-Marts. In a six-month-period, the witness admitted he was responsible for stealing more than $230,000 worth of merchandise from Wal-Mart.
United States District Court Judge Sim Lake, who presided over the trial has set sentencing for April 25, 2013. Danhach faces up to five years for the one count of conspiracy to transport stolen merchandise in interstate commerce as well as up to 10 years in
as to each of the three convictions for transporting stolen merchandise. Danhach further faces a maximum sentence of 20 years for each of the two obstruction of justice counts. All charges also include a possible $250,000 fine. Danhach could also face the loss of his legal permanent residence status and deportation from the United States.He will remain in custody pending his sentencing hearing.
This matter was investigated by the FBI, Houston Police Department-Major Offenders Division and the Harris County Sheriff’s Office, with the cooperation of CVS, Walgreens, Wal-Mart, Mead Johnson and Abbott Nutrition. The case was prosecuted by Assistant United States Attorneys Kebharu Smith, Joe Magliolo and Albert Ratliff.
Florida Resident Sentenced to 33 Months in Prison for Securities and Investment Fraud SchemeRead the Press Release
NEWARK, N.J. – Scott Kupersmith, formerly of Alpine, N.J., and now living in Marco Island, Fla., was sentenced to 33 months in prison for engaging in a sophisticated securities and investment fraud scheme, U.S. Attorney Paul J. Fishman announced.
Kupersmith, 46, previously pleaded guilty before U.S. Magistrate Judge Patty Shwartz in Newark federal court to an Information charging him with securities fraud. U.S. District Judge Katharine S. Hayden imposed the sentence in Newark federal court.
According to documents filed in the case and statements made in court:
Kupersmith engaged in a securities fraud scheme commonly referred to as “free-riding,” in which a customer buys or sells securities in a brokerage account without the cash or securities to cover the trades. Kupersmith and his associates opened more than half-a-dozen brokerage accounts at brokerage firms located in New Jersey and across the country. To induce the brokerage firms to open these accounts, Kupersmith falsely represented that he had a personal net worth of approximately $5 million and that he controlled a hedge fund in Manhattan with assets worth more than $10 million. Once these accounts were opened, Kupersmith used them to make millions of dollars’ worth of securities trades. When the trades were successful, Kupersmith kept the profits. When the trades were not profitable, Kupersmith would walk away from the trades, leaving the brokerage firms to settle the trades on Kupersmith’s behalf. The brokerage firms collectively sustained $1 million in losses.
Kupersmith funded the scheme, in part, with money that he solicited from investors. He falsely represented to them that he ran a successful Manhattan hedge fund that had an annual return of about 30 percent and promised investors grossly unrealistic returns.
In addition to a prison term, Judge Shwartz sentenced Kupersmith to three years of supervised release and fined him $1.8 million.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez in Newark, for the investigation leading to today’s sentence. He also thanked the U.S. Securities and Exchange Commission’s Division of Enforcement in New York for its assistance.
The government is represented by Assistant U.S. Attorney Christopher J. Kelly of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.13-104
Defense counsel: Lisa Mack Esq., Assistant Federal Public Defender, Newark
Federal Grand Jury in Fort Wayne Returns IndictmentRead the Press Release
Fort Wayne, INCThe United States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returned the following Indictment on February 27, 2013:
Curtis Wittwer, 65, of Spencerville, Indiana, is charged in a four count Indictment with two counts of maintaining a drug-involved premises from on or about September 12, 2012, to on or about September 25, 2012, possessing a firearm in furtherance of a drug trafficking crime, and being an unlawful user of a controlled substance in possession of a firearm on or about September
25, 2012. The Indictment also seeks forfeiture of U.S. currency, firearms and ammunition. These charges were filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Indiana State Police, IMAGE Drug Task Force, Allen County Police Department and the DeKalb County Prosecutor’s Office. This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony W. Geller.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
##END##Federal Court Bars Nashville, Tenn., Mo’ MoneyTaxes Licensee from Preparing Tax ReturnsRead the Press Release
A federal court permanently barred Toney Fields and Trumekia Shaw, who do business as Fields Mo’ Money Taxes in Nashville, Tenn., from preparing federal tax returns, the Justice Department announced today. The civil injunction order was signed by Judge Kevin H. Sharp of the U.S. District Court for the Middle District of Tennessee. It found that the defendants engaged repeatedly in fraudulent conduct that interfered with enforcement of federal tax laws.
The government complaint in the civil injunction lawsuit alleged that Fields is a licensee of Mo’ Money Taxes LLC and MoneyCo USA LLC, both located in Memphis, Tenn. According to the complaint Fields and Shaw get an improper jump on their competition by opening Mo’ Money Taxes in Nashville immediately after Christmas, before the tax year ends. According to the complaint, Fields and Shaw use customers’ end-of-year pay stubs to prepare tax returns, before employers have issued Internal Revenue Service (IRS) W-2 wage-statement forms to employees. Preparing tax returns based on pay stubs rather than proper W-2 Forms violates IRS rules. Fields and Shaw allegedly use the pay stubs to create fake W-2 Forms to include with the returns. End-of-year pay stubs frequently omit income and distributions that are shown on employer-issued W-2 Forms. This inevitably results in errors on federal tax returns.
The complaint alleged that Fields and Shaw inflate or claim false tax credits on customers’ tax returns. According to the complaint, Fields and Shaw frequently claim improper dependent exemptions in order to claim inflated earned-income credits or child tax credits for their customers. The complaint also alleged that the defendants include false filing statuses and bogus claims for charitable contributions on customers’ returns. The complaint says the government estimates that the defendants’ misconduct may have caused revenue losses of over $5 million from the more than 1,100 tax returns they prepared in 2011.
The IRS lists return preparer fraud as one of its “Dirty Dozen” tax scams .
In the past decade the Justice Department’s Tax Division has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters. Information about these cases is available on the Justice Department website .
Related Materials:
United States v. Toney Fields, et al.
Order of Permanent Injunction (PDF)FBI Reunites Children with Mother After Eighteen Months in CaptivityRead the Press Release
SAN JOSE - Two children, both United States citizens, were reunited with their mother, a Mexican national, after spending more than eighteen months in captivity in Mexico, United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson announced.
On December 19, 2012, a federal grand jury returned an indictment against three Mexican nationals, Jesus Salinas and Patricia Delatorre, of Mount Vernon, Washington, and Maria Guadalupe Valenzuela Castaneda, of Juarez, Mexico. According to the indictment, in June, 2011, Salinas and Delatorre agreed, in exchange for money, to transport the children from Mexico, where the children were living at the time, to Washington State, where the mother of the children was living. Rather than return the children to the United States, however, in July, 2011, Salinas and Delatorre transported the children to Castaneda, in Juarez, Mexico. The conspirators then demanded more money from the mother for the return of the children. For months, the mother sent payments to the conspirators, but the children were never returned. The conspirators also threatened to kill the mother if she contacted law enforcement or if she went to Juarez in search of the children.
On December 11, 2012, the FBI, together with Mexican law enforcement, located the children in Juarez, Mexico, in the custody of Castaneda and placed the children into the temporary care of Mexican social services.
On Friday, March 1, 2013, the children, through the work of the FBI, the Watsonville Police Department, the National Center for Missing and Exploited Children, and the United States Department of State, were repatriated from Mexico to the United States, and reunited with their mother in San Jose, California.
“I commend the work of the FBI, local law enforcement, and the Mexican authorities. Because of their hard work and collaboration, a family was reunited this weekend.”
“The FBI worked closely with our law enforcement partners in California, Washington, Texas and Mexico to safely recover these children from their kidnappers and reunite them with their mother,” said FBI Special Agent in Charge Johnson. “We will continue to actively pursue and bring to justice those individuals who kidnap children and extort family members for money. These crimes take a terrible toll on the victims and we will hold the perpetrators accountable.”
The indictment charges the defendants with one count of kidnapping minor victims in interstate and foreign commerce, in violation of 18 U.S.C. §§ 1201(a)(1), (c) and (g)(1); and two counts of unlawful seizure and detention of a United States national, in violation of 18 U.S.C. § 1203(a). The statutory penalty for the count of kidnapping a minor victim is a mandatory minimum sentence of twenty (20) years imprisonment, and a maximum term of up to life, and a maximum fine of $250,000. The maximum statutory penalty for each count of unlawful seizure and detention of a U.S. national is life imprisonment, and a maximum fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
On January 4, 2013, Salinas and Delatorre were arrested by the FBI in Mount Vernon, Washington, and were ordered detained by Honorable Brian A. Tsuchida, in Seattle, Washington. On January 28, 2013, Salinas and Delatorre made their initial appearances before Judge Howard R. Lloyd in San Jose, California, where the defendants were arraigned, and ordered detained pending trial. The matter is assigned to Judge Edward J. Davila for trial purposes. The next scheduled appearance is March 11, 2013 at 1:30 p.m. for further status. Salinas and Delatorre remain in custody.
An arrest warrant was issued for Maria Guadalupe Valenzuela Castaneda. Anyone with information about her whereabouts should contact the FBI at (408) 369-8000 (San Jose field office), or (915) 832-5000 (El Paso, Texas field office).
AUSA Daniel Kaleba is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Elise Etter. The prosecution is the result of the investigation of the Federal Bureau of Investigation, the Watsonville Police Department, the Department of Homeland Security Customs and Border Protection, and the United States Department of State.
Please note, an indictment contains only allegations against an individual and, as with all defendants, the defendants must be presumed innocent unless and until proven guilty.
Elisa Baker Sentenced to 10 Years in Prison for Conspiracy to Distribute Prescription DrugsRead the Press Release
STATESVILLE, N.C. – U.S. District Court Judge Richard Voorhees sentenced today Elisa Annette Baker, 44, of Hickory, N.C., to serve 120 months in prison for conspiracy with intent to distribute prescription drugs, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Baker was also ordered to serve three years under court supervision once she serves her prison term.
U.S. Attorney Tompkins is joined in making today’s announcement by Harry S. Sommers, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office; Greg McLeod, Director of the North Carolina State Bureau of Investigation (SBI); and Chief Tom Adkins of the Hickory Police Department.
According to filed documents and court proceedings, from 2006 to October 2010, Baker conspired with others to distribute and possess with intent to distribute the controlled substances oxycodone, hydrocodone and alprazolam. Baker also maintained residences in Granite Falls, Hudson and Hickory, N.C. for the purpose of distributing the prescription drugs. According to plea documents and today’s sentencing hearing, Baker possessed approximately 12,000 dosage units of oxycodone, 10,000 dosage units of hydrocodone, and 29,000 dosage units of alprazolam. Filed documents indicate that Baker distributed prescription drugs to one of the co-conspirators, a relative, and several of his high school friends, when he was 16 years old. According to court documents, Baker obtained the prescription drugs through multiple prescriptions from physicians and from other unidentified sources in Catawba County. In January 2012, Baker pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute a controlled substance.
Baker is currently serving an 18-year state sentence for second degree murder in the death of Zahra Baker. At today’s sentencing hearing, Judge Voorhees ordered that Baker completes her state sentence before she begins serving her federal sentence. Federal sentences are served without the possibility of parole.
The investigation was handled by the DEA, NC SBI and the Hickory Policy Department. The prosecution was handled by Assistant United States Attorneys Dana O. Washington and Cortney S. Escaravage.
Eagle Butte Man Pleads Guilty to Firearm OffenseRead the Press Release
United States Attorney Brendan V. Johnson announced that Kimo Little Bird, Sr., age 31, of Eagle Butte, South Dakota appeared before U.S. District Judge Roberto A. Lange on February 26, 2013 and pled guilty to Count II of an Indictment that charged him with being a Felon in Possession of a Firearm. The maximum penalty upon conviction is 10 years' imprisonment, a $250,000 fine or both, and a period of supervised release of 3 years.
The conviction stems from an incident in December of 2012 when the Defendant was arrested for an outstanding tribal warrant. While making the arrest, law enforcement found a firearm at the residence where the Defendant was staying. The Defendant admitted that the firearm belonged to him and that he knew he was prohibited from possessing firearms because he had previously been convicted of a felony offense.
The investigation was conducted by the U.S. Fish & Wildlife, Bureau of Alcohol, Tobacco, Firearms & Explosives, Federal Bureau of Investigation, and the Bureau of Indian Affairs, Standing Rock Agency. The case is being prosecuted by Assistant U.S. Attorney Troy Morley.
A presentence investigation was ordered and a sentencing date was set for May 20, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
District Man Sentenced to 16-Month Prison Term in Break-in at Public Charter School–At Time of Offense, Defendant Was on Probation for Earlier Robbery-Read the Press Release
WASHINGTON - Thomas Asa Fields, 19, of Washington, D.C., was sentenced today to 16 months in prison on a charge stemming from a break-in last year at a public charter school in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Fields pled guilty in January 2013 in the Superior Court of the District of Columbia to attempted second-degree burglary. He was sentenced by the Honorable Robert I. Richter. Upon completion of his sentence, Fields will be placed on three years of supervised release.
According to the government’s evidence, on Sept. 22, 2012, at about 11:40 p.m., the Metropolitan Police Department (MPD) responded to the Options Public Charter School in the 1300 block of E Street NE for a report of an ongoing burglary. At the scene, the police set up a perimeter and observed Fields and two other suspects fleeing from one of the school's buildings. The police pursued these individuals and caught up to them. The police canvassed the school area and recovered a backpack, with four laptops belonging to the school. The backpack was located where the police had observed Fields leaving the building.
Subsequent investigation revealed that Fields was on probation for a prior robbery conviction and that he was wearing a GPS monitoring device as part of his probation conditions. Tracking information showed that he was inside the school at the time of the reported burglary. A second defendant earlier pled guilty to charges in the case.
In the robbery case, Fields previously pled guilty in the Superior Court of the District of Columbia to snatching an iPhone from an unsuspecting victim. He was placed on probation in July 2012. After Fields was re-arrested for the burglary matter, the Honorable Lynn Leibovitz revoked his probation and sentenced him to two years in prison.
Judge Richter ordered the sentence for the attempted burglary charge to be run consecutively to the sentence in the robbery matter, meaning that Fields now faces a total of three years and four months of incarceration.
In announcing today's sentence, U.S. Attorney Machen commended the work of the Metropolitan Police Department. He also acknowledged the efforts of Assistant U.S. Attorney John C. Truong, who investigated and prosecuted the case.
13-081Developer Eljwaidi Sentenced to Almost Two Years in Prision for Federal Fraud ConvictionRead the Press Release
LAS VEGAS, Nev. – A man who fraudulently enticed persons to give him almost $2 million for the development of a local commercial real estate project that never materialized, was sentenced today to 21 months in federal prison and ordered to pay $1.8 million in restitution, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Jean Marc Eljwaidi, aka Jean Marc Joveidi, 44, of Las Vegas, was sentenced by U.S. District Judge James C. Mahan. Eljwaidi pleaded guilty in November to one count of wire fraud.
From approximately November 2008 to June 2009, Eljwaidi obtained funds from investors for the development of a commercial real estate project at Interstate 215 and Russell Road in Las Vegas. In November 2008, Eljwaidi knew that the project could not be completed, but nevertheless enticed persons to continue to invest in the project. Ejwaidi provided the victim investors with promissory notes stating that he would use their investments to develop the project and that he would return their investments within a few months with an approximately 25 to 75 percent profit. In actuality, Eljwaidi knew that he would use the funds to pay his personal expenses and to maintain his affluent lifestyle, and to pay extension fees to keep the land from foreclosure. When the time came to pay the victim investors, Eljwaidi delayed repayment by soliciting more money from the investors or by repaying them with nominal amounts, or by avoiding them. As a result, the victim investors were never repaid or repaid nominal sums. The loss to the victim investors was approximately $1.8 million.
Eljwaidi was permitted to self-report to federal prison by June 3, 2013.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Roger Yang.
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.
Department of Justice Settles Two Civil Complaints Against Two Employers for Violations of Federal Statutes Relating to Military Reserve DutyRead the Press Release
A settlement agreement was filed in U.S. District Court in Denver resolving a complaint alleging that two employers, Delaware Resource Group of Oklahoma LLC (DRG), and FlightSafety Services Corporation (FlightSafety), violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by not paying money into two U.S. Air Force veterans’ 401(k) plans, announced Assistant Attorney General for the Civil Rights Division Thomas E. Perez and U.S. Attorney for the District of Colorado John Walsh.
USERRA prohibits employers from discriminating against or taking any adverse employment action against any person because that person has performed service in the uniformed services. USERRA also allows returning service members to make “catch up” contributions to their civilian employers’ 401(k) retirement plans, and receive the employers’ matching contributions that were missed while they were on military leave. The Justice Department’s Civil Rights Division and the U.S. Attorney’s Offices have given a high priority to the enforcement of service members’ rights under USERRA.
The two veterans, Michael J. Sipos and Gary D. Smith, are the plaintiffs in this case. According to the complaint, their employers, DRG and FlightSafety, violated USERRA by not allowing the veterans to make “catch up” contributions to their company’s 401(k) plans upon their return from duty and not matching contributions that the veterans missed while on active duty in the Air Force.
Under the settlement agreement, the defendants, DRG and FlightSafety, will allow the plaintiffs to make their “catch up” contributions to their respective 401(k) plans. In addition, DRG and FlightSafety will provide matching employer contributions to each of the veterans’ 401(k) plans.
“We rely on our servicemembers to protect us, and the Department of Justice is committed to ensuring that their civilian employment benefits are protected as well,” said Assistant Attorney General Perez. “The department commends FlightSafety and DRG for agreeing to resolve this matter amicably without contested litigation, which shows a good faith commitment by the companies to ensure that they are in compliance with USERRA.”
The case was litigated by Assistant U.S. Attorney Juan G. Villaseñor in the U.S. Attorney’s Office for the District of Colorado, in collaboration with the Civil Rights Division of the Justice Department. The lawsuit was filed after the Veterans’ Employment and Training Service (VETS) of the Department of Labor referred Sipos’ and Smith’s complaints to the Justice Department upon completion of its investigation and failed settlement efforts. The Departments of Labor and Justice work cooperatively together to protect the jobs and benefits of National Guard and Reserve service members upon their return to civilian life. More information about USERRA is available at www.dol.gov/vets/programs/userra/main.htm .
Related Materials:
FlightSafety Complaint
FlightSafety Settlement AgreementDepartment 0f Justice Settles Civil Complaint Against Two Employers for Violations of Federal Statutes Relating to Military ServiceRead the Press Release
DENVER – A settlement agreement was filed in U.S. District Court in Denver resolving a complaint alleging that two employers, Delaware Resource Group of Oklahoma LLC (DRG), and FlightSafety Services Corporation (FlightSafety), violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by not paying money into two U.S. Air Force veterans’ 401(k) plans, announced Assistant Attorney General for the Civil Rights Division Thomas E. Perez and U.S. Attorney for the District of Colorado John Walsh.
USERRA prohibits employers from discriminating against or taking any adverse employment action against any person because that person has performed service in the uniformed services. USERRA also allows returning service members to make “catch up” contributions to their civilian employers’ 401(k) retirement plans, and receive the employers’ matching contributions that were missed while they were on military leave. The Justice Department’s Civil Rights Division and the U.S. Attorney’s Offices have given a high priority to the enforcement of service members’ rights under USERRA.
The two veterans, Michael J. Sipos and Gary D. Smith, are the plaintiffs in this case. According to the complaint, their employers, DRG and FlightSafety, violated USERRA by not allowing the veterans to make “catch up” contributions to their company’s 401(k) plans upon their return from duty and not matching contributions that the veterans missed while on active duty in the Air Force.Under the settlement agreement, the defendants, DRG and FlightSafety, will allow the plaintiffs to make their “catch up” contributions to theirrespective 401(k) plans. In addition, DRG and FlightSafety will provide matching employer contributions to each of the veterans’ 401(k) plans.
“We rely on our servicemembers to protect us, and the Department of Justice is committed to ensuring that their civilian employment benefits are protected as well,” said Assistant Attorney General Perez. “The department commends FlightSafety and DRG for agreeing to resolve this matter amicably without contested litigation, which shows a good faith commitment by the companies to ensure that they are in compliance with USERRA.”
The case was litigated by Assistant U.S. Attorney Juan G. Villaseñor in the U.S. Attorney’s Office for the District of Colorado, in collaboration with the Civil Rights Division of the Justice Department. The lawsuit was filed after the Veterans’ Employment and Training Service (VETS) of the Department of Labor referred Sipos’ and Smith’s complaints to the Justice Department upon completion of its investigation and failed settlement efforts. The Departments of Labor and Justice work cooperatively together to protect the jobs and benefits of National Guard and Reserve service members upon their return to civilian life. More information about USERRA is available at www.dol.gov/vets/programs/userra/main.htm
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Department 0f Justice Settles Civil Complaint Against Two Employers for Violations of Federal Statutes Relating to Military ServiceRead the Press Release
DENVER – A settlement agreement was filed in U.S. District Court in Denver resolving a complaint alleging that two employers, Delaware Resource Group of Oklahoma LLC (DRG), and FlightSafety Services Corporation (FlightSafety), violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by not paying money into two U.S. Air Force veterans’ 401(k) plans, announced Assistant Attorney General for the Civil Rights Division Thomas E. Perez and U.S. Attorney for the District of Colorado John Walsh.
USERRA prohibits employers from discriminating against or taking any adverse employment action against any person because that person has performed service in the uniformed services. USERRA also allows returning service members to make “catch up” contributions to their civilian employers’ 401(k) retirement plans, and receive the employers’ matching contributions that were missed while they were on military leave. The Justice Department’s Civil Rights Division and the U.S. Attorney’s Offices have given a high priority to the enforcement of service members’ rights under USERRA.
The two veterans, Michael J. Sipos and Gary D. Smith, are the plaintiffs in this case. According to the complaint, their employers, DRG and FlightSafety, violated USERRA by not allowing the veterans to make “catch up” contributions to their company’s 401(k) plans upon their return from duty and not matching contributions that the veterans missed while on active duty in the Air Force.Under the settlement agreement, the defendants, DRG and FlightSafety, will allow the plaintiffs to make their “catch up” contributions to theirrespective 401(k) plans. In addition, DRG and FlightSafety will provide matching employer contributions to each of the veterans’ 401(k) plans.
“We rely on our servicemembers to protect us, and the Department of Justice is committed to ensuring that their civilian employment benefits are protected as well,” said Assistant Attorney General Perez. “The department commends FlightSafety and DRG for agreeing to resolve this matter amicably without contested litigation, which shows a good faith commitment by the companies to ensure that they are in compliance with USERRA.”
The case was litigated by Assistant U.S. Attorney Juan G. Villaseñor in the U.S. Attorney’s Office for the District of Colorado, in collaboration with the Civil Rights Division of the Justice Department. The lawsuit was filed after the Veterans’ Employment and Training Service (VETS) of the Department of Labor referred Sipos’ and Smith’s complaints to the Justice Department upon completion of its investigation and failed settlement efforts. The Departments of Labor and Justice work cooperatively together to protect the jobs and benefits of National Guard and Reserve service members upon their return to civilian life. More information about USERRA is available at www.dol.gov/vets/programs/userra/main.htm
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Defendant Convicted of Providing Material Support to TerrorismRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and the members of the South Florida Joint Terrorism Task Force (“JTTF”), announced today that a Miami federal jury today convicted Hafiz Muhammed Sher Ali Khan, 77, on all counts in the indictment charging him with providing material support to terrorists, including the Pakistani Taliban. According to public records, defendant Hafiz Khan was the Imam at the Miami Masjid in Miami, Florida. The indictment did not allege that the masjid participated in the defendant’s scheme.
More specifically, after two months of trial, the jury convicted Khan on charges of conspiring to provide, and providing, material support to a conspiracy to murder, maim and kidnap persons overseas, 18 U.S.C. ' 2339A, and conspiring to provide material support to a foreign terrorist organization, specifically, the Pakistani Taliban, 18 U.S.C. ' 2339B. Sentencing has been scheduled for May 30, 2013. At sentencing, the defendant faces up to 15 years’ imprisonment on each count.
U.S. Attorney Wifredo A. Ferrer stated, “Despite being an Imam, or spiritual leader, Hafiz Khan was by no means a man of peace. Instead, he acted with others to support terrorists to further acts of murder, kidnapping and maiming. But for law enforcement intervention, these defendants would have continued to transfer funds to Pakistan to finance the Pakistani Taliban, including its purchase of guns. Dismantling terrorist networks is a top priority for this Office and the Department of Justice.”
“Today, terrorists have lost another funding source to use against innocent people and U.S. interests,” said Michael B. Steinbach, Special Agent in Charge of FBI Miami. “We will not allow this country to be used as a base for funding terrorists. Individuals such as Hafiz Muhammed Sher Ali Khan, who support terror, represent a threat to our safety and provide an example of why the FBI’s number one priority is counterterrorism.”
The Pakistani Taliban, also known as Tehrik e Taliban Pakistan, Tehrik I Taliban, Tehrik-e-Taliban, and Tehreek e Taliban, is a Pakistan-based terrorist organization formed in or around December 2007 by an alliance of radical Islamist militants. On September 1, 2010, the United States Department of State formally designated the Pakistani Taliban as a Foreign Terrorist Organization, under Section 219 of the Immigration and Nationality Act.
According to the evidence at trial, Khan, with the help of persons in South Florida and Pakistan, sent money and other material support to Pakistani Taliban contacts and sympathizers overseas. The Pakistani Taliban’s objectives include resistance against the lawful Pakistani government, enforcement of strict Islamic law known as Sharia, and opposition to the United States and coalition armed forces fighting in neighboring Afghanistan. The Pakistani Taliban has committed numerous acts of violence in Pakistan and elsewhere, including suicide bombings which resulted in the death of civilians as well as Pakistani police, army, and government personnel, and also provided financing and training for the attempted bombing of New York City’s Times Square in May 2010.
According to the evidence at trial, Khan sought to aid the Pakistani Taliban’s fight against the Pakistani government and its perceived allies, including the United States, by supporting acts of murder, kidnapping, and maiming in Pakistan and elsewhere, in order to displace the lawful government of Pakistan and to establish Sharia. Khan transferred money from the United States to Pakistani Taliban supporters in Pakistan, primarily using bank accounts and wire transfer services in the United States and Pakistan. These funds were intended to purchase guns for the Pakistani Taliban, to sustain militants and their families, and generally to promote the Pakistani Taliban’s cause. Khan also solicited and collected money in the United States for that purpose, taking great care to conceal his activities. In one recorded conversation introduced as evidence at trial, Khan stated that money cannot be sent openly to the Pakistani Taliban, but must instead be sent covertly through its supporters. Khan also used a madrassa he founded in Pakistan (where he was born) to provide shelter and other support to Pakistani Taliban militants. In another recorded conversation introduced as evidence at trial, Khan claimed that children from his madrassa have gone to train to kill Americans in neighboring Afghanistan.
Mr. Ferrer commended the investigative efforts of the FBI, U.S. Customs and Border Protection, U.S. Department of State, Broward Sheriff’s Office, Miami-Dade Police, City of Miami Police, City of Miramar Police, City of Margate Police, and the Florida Department of Environmental Protection, and the members of the South Florida Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorneys John Shipley, Sivashree Sundaram, and Michael Patrick Sullivan, from the U.S. Attorney’s Office for the Southern District of Florida, and Trial Attorney Bridget Behling from the Counterterrorism Section of the Justice Department’s National Security Division.
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.
Correctional Officer Pleads Guilty to Assaulting InmateRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh pleaded guilty in federal court to a charge of deprivation of civil rights, United States Attorney David J. Hickton announced today.
Arii Metz, 34, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that Metz, while acting as a correctional officer with the Allegheny County Jail, used excessive force in the assault of an inmate on Oct. 13, 2010, and thereby violated his civil rights.
Judge Fischer scheduled sentencing for June 18, 2013, at 9:00 a.m. The law provides for a maximum sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Amy L. Johnston is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Arii Metz.
Consumer Awareness and Protection Expo/Shred EventRead the Press Release
Free Event for the Public
KNOXVILLE, Tenn. – On Saturday, Mar. 23, 2013, a Consumer Awareness and Protection Expo/Shred Event will be held at the Knoxville Expo Center, 5441 Clinton Highway, Knoxville, Tenn. This event is part of National Consumer Protection Week (NCPW), which is a worldwide campaign, led by the Federal Trade Commission to encourage consumers across the country to take full advantage of their consumer rights. In support of NCPW, the U.S. Postal Inspection Service and the Tennessee Highway Patrol, along with other community partners are hosting this free event.
NCPW is a collaborative effort between more than 20 state and federal government agencies, including the U.S. Postal Inspection Service, Internal Revenue Service, and Securities and Exchange Commission, as well as non-government groups such as the Better Business Bureau.
The event will provide the general public with information on how they can protect themselves from becoming a victim of various types of fraud, including preventing identity theft. Identity theft continues to be one of the fastest growing crimes in the United States. It is important for consumers to recognize that identity theft is not just a financial crime. This crime varies widely, and can include financial identity theft (checking and/or credit card fraud), criminal identity theft, governmental identity theft, and medical identity theft.
Identity theft is a crime in which an impostor obtains key pieces of personal identifying information (PII) such as Social Security numbers and driver's license numbers and uses them for their own personal gain. It can start with lost or stolen wallets, stolen mail, a data breach, computer virus, “phishing” scams, or paper documents thrown out by you or a business (dumpster diving).
Since shredding documents containing these key pieces of personal information rather than throwing them in the trash is one way to prevent identity theft, participants can bring unwanted documents to the event to be shredded free of charge.
Agencies participating in the event include the U.S. Postal Inspection Service, U.S. Attorney’s Office, Federal Bureau of Investigation, U.S. Secret Service, Internal Revenue Service, Tennessee Department of Safety and Homeland Security, Knoxville Police Department Internet Crimes Against Children Task Force, and others.
For additional information regarding this event, please contact Postal Inspector Wendy Boles at 865-692-0795.
Colorado Man Indicted for LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Colorado Springs, Colorado man has been indicted by a federal grand jury for allegedly stealing the credit card of another person at Ellsworth Air Force Base and making withdrawals on September 9, 2012.
Scott Stewart, age 19, was indicted by a federal grand jury on November 19, 2012 for Larceny. Stewart appeared before U.S. Magistrate Judge Veronica L. Duffy on February 25, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is one year of imprisonment and a $100,000 fine. The charge is merely an accusation and Stewart is presumed innocent until and unless proven guilty.
The investigation is being conducted by the United States Air Force. Assistant U.S. Attorney Wayne Venhuizen is prosecuting the case. Stewart was released on bond pending trial. A trial date has been set for April 30, 2013.
Chicago Investment Advisor Sentenced to Six Years in Prison for Causing Clients to Lose $1.6 Million in Fraud SchemeRead the Press Release
CHICAGO — A former Chicago investment advisor was sentenced today to six years in federal prison for an investment fraud scheme that swindled clients, causing them to lose more than $1.6 million. The defendant, DIMITRY VISHNEVETSKY, pleaded guilty last August to wire fraud and bank fraud, admitting that he misappropriated funds raised from investors for his own purposes, including to pay for such expenses as mortgage and car payments, travel and vacations, restaurant bills, athletic club dues, and to make trades for himself, while using additional investor funds to make Ponzi-type payments to clients.
Vishnevetsky, 34, of Chicago, was ordered to pay $1,684,763 in restitution, nearly all of it to a half-dozen investment clients, by U.S. District Judge Ruben Castillo, who likened Vishnevetsky’s conduct to a financial storm that devastated the lives of his victims. Vishnevetsky was ordered to begin serving his sentence on May 28.
“This offense was entirely unnecessary,” the government argued at sentencing. “There was no good reason for this fraud, and the defendant, who was skilled in the world of finances could have gotten a legitimate job. In fact, [he] obtained a Bachelor’s degree in business administration, and attended the University of Oxford.”
According to the court records, Vishnevetsky offered and purported to sell investments, including investments in funds which promised to trade S&P Futures, and a fund that could trade in things such as equities, futures contracts, and commodities, as well as brokerage and management services for some investors, and promissory notes, through Hodges Trading, LLC, and Oxford Capital, LLC, which he controlled. Three purported Oxford funds existed in name only, as did the promissory notes, which Vishnevetsky described as London Interbank Offered Rate (LIBOR) adjusted notes.
Between September 2006 and March 2012, Vishnevetsky made false representations about the profitability of his prior and current trading, the use of the invested funds, the risks involved, the expected and actual returns on investments and trading, as well as false representations about the funds he purportedly traded. For example, Vishnevetsky created and provided some investors fraudulent trading results showing profits as high as 36 percent per year. In fact, any trades that Vishnevetsky actually made consistently resulted in losses, not profits.
The bank fraud conviction resulted from false statements Vishnevetsky made between 2007 and 2010 to Merrill Lynch Bank & Trust concerning his income and assets to cause the bank to issue, and later modify, two loans totaling approximately $519,500 to purchase a condominium in Chicago.
The government is being represented by Assistant U.S. Attorney Jacqueline Stern.
The sentence was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Commodity Futures Trading Commission, which filed a companion civil enforcement lawsuit, assisted in the investigation.
The investigation falls under the umbrella of the Financial Fraud Enforcement Task Force, which includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit: StopFraud.gov.
Canton Man Sentenced to 14 Years in Prison for Eight Bank RobberiesRead the Press Release
A Canton man was sentenced to more than 14 years in prison after previously pleading guilty to eight bank robberies in Pennsylvania and Ohio, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.
Benjamin G. Gates, age 34, was sentenced to 151 months in prison by U.S. District Judge James Gwin.
“This sentence should send a clear message to those who would think about robbing a bank,” Dettelbach said. Our law enforcement partners are to be commended for bringing an end to this wave of bank robberies.”
“This case reflects the valued partnership between the FBI’s Safe Streets Task Force and the citizens of Northern Ohio,” Anthony said. “Subsequent to the media’s rapid release of key information, the public provided invaluable leads resulting in the arrest of Benjamin Gates.”
The 2012 robberies Gates pleaded guilty to are as follows:
June 13: Citizens Bank, Pittsburgh.
June 25: Citizens Bank, Erie, Penn.
July 2: U.S. Bank, Canton, Ohio.
July 20: U.S. Bank, Cuyahoga Falls, Ohio.
July 27: Huntington Bank, Liberty, Ohio.
Aug. 3: Huntington Bank, North Canton, Ohio
Aug. 16: U.S. Bank, Cuyahoga Falls, Ohio
The investigation preceding the indictment was conducted by the following agencies: Federal Bureau of Investigation, Mahoning County Sheriff’s Office, Stark County Sheriff’s Office, Canton Police Department, North Canton Police Department, Jackson Township Police Department, Liberty Township Police Department and the Cuyahoga Falls Police Department.
The matter was prosecuted by Assistant United States Attorney Linda H. Barr.
Cabell County Man Pleads Guilty to Illegal Firearm PossessionRead the Press Release
HUNTINGTON, W.Va. – U.S. Attorney Booth Goodwin today announced that a Cabell County man pleaded guilty in federal court to illegal firearm possession. Kenneth Richard Nance, 43, of Huntington, W.Va., pleaded guilty to possession of a firearm by a person subject to a domestic violence protection order. Nance admitted that on December 7, 2011, he possessed a Raven .25-caliber pistol.
At the time of the firearm possession, Nance was subject to a Domestic Violence Protection Order (DVPO) issued by the Family Court of Cabell County, West Virginia. Nance admitted that he knew the DVPO was in effect at the time he possessed the firearm on December 7, 2011. The defendant further admitted that he knew it was illegal to possess a firearm or ammunition while the DVPO was in effect.
Nance faces up to 10 years in prison and a $250,000 fine when he is sentenced on June 3, 2013 by United States District Chief Judge Robert C. Chambers.
The investigation was conducted by the FBI, the ATF, and the Cabell County Sheriff’s Department. Assistant United States Attorney Lisa Johnston is in charge of the prosecution.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Blackwell Fireman and Police Officer Charged with Illegal Possession of Fully Automatic Russian Ak-47 Machine GunRead the Press Release
Oklahoma City, Oklahoma – TROY RON AEBISCHER, 30, of Blackwell, Oklahoma, and JOHN HARVEY, 26, of Ponca City, Oklahoma, have been charged for illegal possession of an unregistered fully automatic Russian AK-47 machine gun, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. Aebischer is a member of the Blackwell Fire Department who holds a current federal firearm license to both purchase and sell firearms out of his home-based business located in Blackwell, Oklahoma. Harvey is a patrolman with the Blackwell Police Department.
The federal complaints filed today alleges that on February 26, 2013, Aebischer contacted a Blackwell Police Officer seeking to sell the Russian-made fully automatic AK 47 machine gun. It is further alleged that Aebischer bought the firearm from Harvey on or about February 17, 2013, after Harvey smuggled it back from Afghanistan following a military deployment. It is alleged that the Blackwell Police Department and Bureau of Alcohol Tobacco Firearms and Explosives set up a sting operation which arranged for an officer to meet with Aebischer to examine and test fire the AK-47. The officer later arranged to purchase the weapon from Aebischer for $2,000 on February 28, 2013.
Both Aebischer and Harvey were arrested on March 1, 2012, and appeared this afternoon in federal court in Oklahoma City. They were each released on $5,000 unsecured bond.
If convicted, Aebischer and Harvey each face up to ten years in prison and a $250,000 fine. The public is reminded that the complaint is merely an accusation and that the defendants are presumed innocent unless and until proven guilty. Reference is made to the complaints for further information.
This case is the result of an investigation by the Bureau of Alcohol Tobacco Firearms and Explosives and the Blackwell Police Department. The case is being prosecuted by United States Attorney Sanford C. Coats and Assistant U.S. Attorney Edward J. Kumiega.
Baltimore Immigration Judge Participates in Naturalization CeremonyRead the Press Release
BALTIMORE --Immigration Judge Lisa Dornell from the Executive Office for Immigration Review, Baltimore Immigration Court, delivered the keynote speech and administered the oath of allegiance to approximately 75 candidates during a naturalization ceremony at the George H. Fallon Federal Building in Baltimore, Md., on March 1, 2012. The Baltimore District Office of U.S. Citizenship and Immigration Services, Department of Homeland Security, hosted the ceremony.
Biographical Information
Attorney General Janet Reno appointed Judge Dornell in April 1995. Judge Dornell received a bachelor of arts degree in 1983 from the University of Vermont and a juris doctorate in 1986 from the University of Texas at Austin School of Law. From 1990 to 1995, Judge Dornell served as senior litigation counsel, Office of Immigration Litigation, Civil Division, Department of Justice. From 1986 to 1990, she served as a trial attorney for the former Immigration and Naturalization Service (INS), New York district office, and as an assistant general counsel, INS Headquarters, Washington, D.C. Judge Dornell lectures on immigration topics and court procedure at several local law schools. She is a member of the District of Columbia and State of Texas Bars.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Executive Office for Immigration ReviewArkansas Man Indicted for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a Hot Springs, Arkansas man has been indicted by a federal grand jury for Failure to Pay Legal Child Support.
Jacob H. Lehnherr, age 38, was indicted by a federal grand jury on August 14, 2012 for failing to pay over $29,682.00 in past due child support. He appeared before U.S. Magistrate Judge John E. Simko on March 1, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is two years imprisonment; a $250,000.00 fine; one year supervised release; one additional year upon revocation; a $100.00 assessment fee; and child support restitution amount owing at the time of sentencing.
The charge is merely an accusation and Lehnherr is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Thomas J. Wright is prosecuting the case.
Lehnherr was released on bond pending trial. A trial date has been set for May 7, 2013.
Appalachian Community Bank Vice President IndictedRead the Press Release
Second Bank Officer Charged With Fraud
GAINESVILLE, Ga. – A former bank employee was indicted by a federal grand jury on February 26, 2013, on charges arising out of a scheme to defraud his former employer Appalachian Community Bank (also known as Gilmer County Bank). William R. “Rusty” Beamon, Jr., 52, of DeKalb County, Ga. will be arraigned today at 2:15 p.m., before United States Magistrate Judge J. Clay Fuller in Gainesville, Ga.
“Bank fraud is a critical problem throughout the United States, but it has hit Georgia especially hard,” said United States Attorney Sally Quillian Yates. “Georgia leads the nation in bank failures since 2008, with 78 banks failing – including Appalachian Community Bank, the bank this defendant is accused of defrauding. Prosecuting bank fraud continues to be one of the major priorities of our office and the United States Department of Justice,” she said.
According to United States Attorney Yates, the indictment, and other information presented in court, Beamon was Vice President of Appalachian Community Bank, which had its headquarters in Ellijay, Ga. He was responsible for Appalachian’s foreclosure liquidation department.
In 2009, Beamon told a real estate agent that he personally owned a house in Cumming, Ga. and then hired that agent to market and lease the property on his behalf. The property, however, was owned by Appalachian Community Bank and was part of the bank’s foreclosure inventory. The real estate agent found someone to lease the property and negotiated a lease on Beamon’s behalf. Beamon then deposited into his personal bank account more than $20,000 in rent payments and security deposits from the illegal lease.
Beamon also allowed Appalachian Community Bank to make loans to his wife, and to a shell company that he owned, to finance fraudulent real estate purchases of properties in the bank’s foreclosure inventory. Each property was sold at a price substantially below fair market value.
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The lack of responsible, ethical leadership at Appalachian Community Bank eventually led to that bank’s failure. The FBI understands the harm caused by such criminal behavior of bank employees or their executives and asks that anyone with information on such activity to contact their nearest FBI field office.”
Due to its poor financial condition, Appalachian Community Bank was forced to close on March 19, 2010, and the FDIC was appointed as receiver.
“The Federal Deposit Insurance Corporation Office of Inspector General is pleased to join our law enforcement colleagues in announcing this indictment,” said Jon T. Rymer, Inspector General, FDIC. “We are particularly concerned when officers of a bank abuse their positions of trust and jeopardize the viability of their banks. We will continue to pursue such offenders in the interest of maintaining the safety and soundness of our nation’s banks and protecting the Deposit Insurance Fund.”
Beamon is not the first insider at Appalachian Community Bank to face federal criminal charges arising out of his employment at the bank. Adam Teague, 38, of Ellijay, Ga. was charged with conspiracy to commit bank fraud and pleaded guilty to that offense on August 23, 2012. Teague, who was Senior Vice President of Appalachian, is scheduled to be sentenced by United States District Judge Richard W. Story on April 5, 2013. Teague faces a maximum sentence of 30 years in prison and a fine of up to $1,000,000.
Both cases are being investigated by Special Agents of the FBI and the FDIC Office of Inspector General. The Teague case is also being investigated by Special Agents of the Department of Treasury, Special Inspector General Troubled Asset Relief Program, and the Federal Housing Finance Agency, Office of Inspector General.
The indictment charges six counts of bank fraud. Each count carries a maximum sentence of 30 years in prison and a fine of up to $1,000,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Members of the public are reminded that the indictment contains only allegations. A defendant is presumed innocent of the charges and it will be the government's burden to prove a defendant's guilt beyond a reasonable doubt at trial.
Assistant United States Attorney Russell Phillips is prosecuting both cases.
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.
Anchorage Felon arraigned on gun charge in Federal CourtRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was arraigned on one charge of felon in possession of a firearm.
Alando Mark Modeste, 29, also known as “Simba,” pled not guilty to the charge of felon in possession of a firearm.
According to the information presented to the court, Modeste was found in the possession of a Smith & Wesson revolver and a Taurus, Model 455 Tracker revolver on April 8, 2012. It is alleged that Modeste has been a felon since July 25, 2005, having been convicted of manslaughter in the Superior Court for the State of Alaska, Third Judicial District.
Special Assistant U.S Attorney Erin W. Bradley, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the indictment in this case. Modeste remains incarcerated pending trial in this case.
An indictment is only a charge and is not evidence of guilty. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.Aberdeen Man Arraigned on Assault ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that an Aberdeen, South Dakota man has been indicted by a federal grand jury for two counts of Assault With a Dangerous Weapon.
Katlin Vine Tiger, age 21, was indicted by a federal grand jury on December 11, 2012. He appeared before U.S. Magistrate Judge William D. Gerdes on February 26, 2013 and pled not guilty to the indictment. The maximum penalty on each count upon conviction is 10 years' imprisonment, a $250,000 fine or both, and a period of supervised release of 3 years. The charges are merely accusations and Tiger is presumed innocent until and unless proven guilty.
The investigation is being conducted by Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy Morley is prosecuting the case.
Tiger was released on bond pending trial. A trial date has not been set.
'Meth' Indictment AnnouncedRead the Press Release
Two Jackson County, Illinois, residents were indicted on February 21, 2013, in an indictment, charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
On February 28, 2013, Leslie Blaine Clover, 48, of Desoto, and Crystal D. Kellems, 38, of Ava, were arraigned in United States District Court in Benton on an indictment charging conspiracy to manufacture methamphetamine. The indictment alleged that the offense occurred between June 2012 and January 28, 2013, in Jackson and Randolph Counties. Both Clover and Kellems are being held without bond pending their trial.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, Clover and Kellems face up to 20 years’ imprisonment, a $1,000,000 fine, and 3 years of supervised release.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, and Randolph County Sheriff’s Office.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Saturday 2 March 2013
New Town Man Sentenced for Involuntary ManslaughterRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on May 31, 2013, Merrill J. Mann II, 37, New Town, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of involuntary manslaughter. Mann pleaded guilty to the charge on Feb. 20, 2013.
Judge Hovland sentenced Mann to serve eight years in federal prison, to be followed by three years of supervised release. Mann was ordered to pay a $100 special assessment to the Crime Victim’s Fund and $15,179 in restitution.
On April 20, 2012, Mann was the driver of a 2004 Chevrolet pickup traveling northbound on BIA Route 2 west of New Town. At the time, Mann was under the influence of intoxicating liquor. Mann stopped his vehicle at a stop sign at the intersection with N.D. Highway 23 for a prolonged period of time. Mann pulled his vehicle into the intersection when a 2003 Dodge Caravan was headed westbound on Highway 23 carrying several passengers. Mann’s vehicle and the van collided. An 84-year-old passenger in the van was killed as a result of injuries sustained in the collision.
The case was investigated by the Federal Bureau of Investigation, the Bureau of Indian Affairs – Fort Berthold Agency, the Three Affiliated Tribes Police Department, and the North Dakota Highway Patrol.Assistant U.S. Attorney Rick Volk prosecuted the case.
Friday 1 March 2013
Wounded Knee Man Sentenced for Theft of Government PropertyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wounded Knee, South Dakota man convicted of Theft of Government Property was sentenced on February 20, 2013 by U.S. Magistrate Judge Veronica L. Duffy. Jeremy Elk, age 30, was sentenced to a $500 fine and 1 year probation.
Between August 2010 and January 2011, Elk stole chainsaws that were owned by the Bureau of Indian Affairs and converted them to his own use. He pleaded guilty on November 27, 2012.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Woodbridge Man Pleads Guilty to Embezzling $400,000 and Not Reporting It on His TaxesRead the Press Release
ALEXANDRIA, Va. – John Coston, 48, of Woodbridge, Va., pleaded guilty today to embezzling more than $400,000 from Diamond Transportation Services (DTS) and not reporting the additional income on his taxes.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service Criminal Investigation’s Washington, D.C., Field Office; and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by United States District Judge Liam O’Grady.
Coston, who worked out of DTS’s office in Springfield, Va., pleaded guilty to wire fraud, which carries a maximum penalty of 20 years in prison, and making and subscribing a false return, which carries a maximum penalty of three years in prison. Sentencing is scheduled for July 19, 2013.
According to a statement of facts filed with his plea agreement, Coston was hired as an operations manager at DTS and was the primary employee that handled payroll disbursements through the company’s online payroll processing system. Coston admitted that from January 2010 through December 2011, he used former employees’ information to funnel payroll funds into bank accounts that Coston actually controlled, which he then accessed and used for his own financial benefit. When he filed his taxes for 2010 and 2011, he claimed that he received more than $63,000 in wages each year, when in reality he received an additional $120,000 in 2010 and $325,000 in 2011 as a result of his embezzlement scheme.
This case was investigated by IRS-CI and the FBI’s Washington Field Office. Assistant United States Attorney Chad Golder is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Woman Pleads Guilty in White Plains Federal Court for Operating A Long-Term Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ALICIA HOLMES pled guilty yesterday to a three-count Indictment, charging HOLMES with devising and operating a scheme to defraud individuals and entities of hundreds of thousands of dollars in accommodations, goods, services, and money. HOLMES pled guilty to one count of wire fraud, one count of mail fraud, and one count of providing a false address in furtherance of fraud today in White Plains federal court before U.S. District Judge Kenneth M. Karas, who set a sentencing date for June 24, 2013.
According to the allegations in the Indictment filed in White Plains federal court:
From at least in or about April 2007 through in or about May 2011, HOLMES made false and fraudulent representations to hotel managers and staff, real estate brokers, property builders, home owners, and school administrators, among others, through emails, telephone calls, and letters, including statements that:
- she owned and/or was in the process of purchasing certain high-end properties, including homes valued between approximately $6,255,000 and $17,000,000;
- she had assets of great value that she would gain access to in as soon as a few days;
- she required financial assistance from the victims until she was in possession of those assets, and
- once she was in possession of her purported assets, she would use those assets to purchase certain high-end properties from some of the victims, or to pay money that she owed to the victims.
HOLMES did not have or reasonably expect to have access to assets of great value, did not own any high-end properties, and knew that her representations were false at the time she made them.
HOLMES, 49, is eligible for enhanced penalties at sentencing because she continued her offense while on pretrial release. She faces a maximum term of imprisonment of 65 years, fines of up to $250,000 or twice the gross pecuniary gain or loss resulting from the offense, restitution to victims, and forfeiture of the proceeds of her offenses.
Mr. Bharara praised the investigative work of the United States Postal Inspection Service and the Federal Bureau of Investigation.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Ilan Graff, Lee Renzin, and Anna M. Skotko are in charge of the criminal prosecution.
If you think you may have been a victim in this case or have additional information, please call Postal Inspector Patricia Thornton at 914-993-1930.
U.S. v. Alicia Holmes S2 Indictment
Williamsville Man Indicted on Wire Fraud ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Buffalo has returned a six-count indictment charging Nicholas Mussolini, 30, of Williamsville, N.Y., with running a loan scheme which resulted in at least one victim suffering a financial loss of over $300,000. The charges carry a maximum penalty of 20 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Maura K. O'Donnell, who is handling the case, stated that according to the indictment, the defendant ran Preston Waters Corporation, a company which purported to be able to obtain large loans for other companies. Mussolini represented to victim companies that a deposit was required in order to secure loans on their behalf. As part of this scheme, a company known as Knob Hall Winery gave over $400,000 to the defendant, as a deposit for an approximately $11,000,000 loan. The defendant did not use this money to obtain a loan for Knob Hall Winery and instead used the funds for personal and other expenses, and to repay other victims of the fraud scheme.
The indictment is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Christopher M. Piehota.
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.
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary L. Hatton
www.usdoj.gov/usao/inn/ Fax: (219) 852-2770
South Bend, Indiana -- The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Larry Harris, Jr., 25, of South Bend, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of possession of a firearm by a convicted felon.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 6/5/13.These charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the South Bend Police Department.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
Aurelio Guerra, 46, of Weslaco, Texas, a defendant in the case US v Doty et al., pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offenses of distribution of marijuana and possession of a firearm in furtherance of drug trafficking.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 6/21/13.These charges were filed as a result of an investigation by the Drug Enforcement Administration, the Laporte County prosecutor’s office as well as the drug unit for Laporte County and the ICE unit for Elkhart County.This case is being prosecuted by Assistant United States Attorney William Grimmer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Willie Caldwell, of South Bend, Indiana, was sentenced by District Judge Jon DeGuilio to 70 months imprisonment and 3 years of supervised release after pleading guilty to the felony offenses of possession of a firearm in furtherance of a drug trafficking crime and possession of a firearm by a convicted felon.According to documents filed by the government in this case, Caldwell admitted he was distributing marijuana and possessed a Ruger .45 pistol and a Winchester rifle.Law enforcement executed a search warrant at his home and recovered the pistol, the rifle, assorted ammunition, 18 baggies of marijuana and a scale.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the South Bend Police Department.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Oliver Collins, 49, of Key West, Florida, was sentenced by District Judge Jon DeGuilio to 2 years of supervised release, 6 months of location monitoring on home detention and restitution of $32,542 after pleading guilty to the felony offense of theft from a program receiving federal funds.According to documents filed by the government in this case, Collins admitted that he purchased a camera valued at over $5,000 in July of 2005 with funds granted by the National Science Foundation for a science project through the University of Notre Dame. The project had received over $10,000 in a one year period under the grant. He purchased the camera for personal, professional use, and to assist himself on the grant work. However, the camera was not part of the approved grant or project approved by the NSF nor did he get approval to use the camera for personal matters. This case was the result of an investigation by the National Science Foundation.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ FAX (219) 852-2770
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
David Finley, Jr., 32, of Merrillville, Indiana, pled guilty before District Judge Joseph Van Bokkelen to the felony offenses of making false statements during the purchase of a firearm and distribution of marijuana.Sentencing has been set for 5/8/13.These charges were filed as a result of an investigation by the Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney Gary Bell.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Mark Bailey, 52, of, Merrillville, Indiana, was sentenced by District Judge Theresa Springmann to 24 months imprisonment and 12 months of supervised release after pleading guilty to the felony offense of aggravated identity theft.This case was the result of an investigation by the United States Postal Service-Office of the Inspector General.This case was prosecuted by Assistant United States Attorney Lovita Morris King.
Corey Dawson, 32, of Sauk Village, Illinois, was sentenced by Senior District Judge Rudy Lozano to 37 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of conspiracy to possess with the intent to distribute heroin.According to documents filed by the government in this case, Dawson was part of a conspiracy that involved distributing a large quantity of heroin to various individuals who were largely young people from the northern Indiana area.This case was the result of an investigation by the Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Orlando Alvarez-Barrientos, 34, of South Albany, Illinois, was sentenced by District Judge Joseph Van Bokkelen to 63 months imprisonment and 4 years of supervised release after pleading guilty to the felony offense of possession with the intent to distribute heroin.This case was the result of an investigation by the Drug Enforcement Administration and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.This case was prosecuted by Assistant United States Attorney Joshua Kolar.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ FAX (219) 852-2770
Fort Wayne, Indiana- The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
Dashawn Jones, 23, of Fort Wayne, Indiana, pled guilty before Magistrate Judge Roger Cosbey to the felony offense of possession of a firearm by a convicted felon.Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. These charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Allen County Community Corrections.This case is being prosecuted by Assistant United States Attorney Anthony Geller.
Jose Soto, 30, of Fort Wayne, Indiana, a defendant in the case US v Buchanan et al., pled guilty before Magistrate Judge Roger Cosbey to the felony offense of conspiracy to possess with the intent to distribute cocaine and crack cocaine. Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. These charges were filed as a result of an investigation by the Federal Bureau of Investigation, the Indiana State Police, the Fort Wayne Police Department, the Allen County Police Department, the Allen County Drug Task Force and the New Haven Police Department.This case is being prosecuted by Assistant United States Attorneys Anthony Geller and Lesley Miller Lowery.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Osiris Espinoza, 31, of Fort Wayne, Indiana, a defendant in the case US v Castaneda et al., was sentenced by District Judge Theresa Springmann to 168 months imprisonment and 5 years of supervised release after pleading guilty to the felony offense of conspiracy to distribute and possess with the intent to distribute cocaine.According to documents filed by the government in this case Espinoza and others were involved in shipping drug proceeds in a package from Fort Wayne to California.As part of the conspiracy, Espinosa shipped a 49-pound package to California, with himself listed on the return address. The box was shipped overnight and was claimed to be frozen food. Based upon interceptions, Espinoza had been gathering money at his apartment, and based upon expert opinion, the Defendant was sending drug proceeds to California for eventual transport to the supplier in Mexico. This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Washington, DC Resident Enters Plea of Guilty in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA — A 38 year old Washington, DC, resident entered a plea of guilty on February 27, 2013, in United States District Court before Judge Gina M. Groh.
United States Attorney William J. Ihlenfeld, II announced that: BRIAN CLIFTON JACKSON, who was in the second day of a jury trial for “Conspiracy to Distribute Heroin and Cocaine Hydrochloride” entered a plea of guilty to “Use of a Communication Facility in Furtherance of a Drug Transaction.” JACKSON is charged with using the public telephone system on May 12, 2011, to facilitate the distribution of heroin in Berkeley County, West Virginia. JACKSON, who is in custody pending sentencing, faces up to 8 years imprisonment and a $250,000 fine. JACKSON’s penalties are enhanced due to his prior convictions in 1991 and 1994 for possession with intent to distribute cocaine in Prince George’s County, Maryland.
This case was prosecuted by Assistant United States Attorneys Jarod Douglas and Stephen Warner and was investigated by the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, and the Berkeley County Sheriff’s Department.
Vietnamese National Pleads Guilty to Firebombing Hazlehurst BusinessRead the Press Release
BRUNSWICK, GA: Leon Buu Dam, 48, a naturalized American citizen from South Vietnam, pleaded guilty before Chief Judge Lisa Godbey Wood on Thursday, February 28 to two charges relating to the firebombing of Cindy Nails, a business operating on South Tallahassee Street in Hazlehurst, Georgia. The bombing resulted in the total loss of the contents of the business, totaling over $21,000.
United States Attorney Edward J. Tarver stated, “Whatever his motive, firebombing a commercial business is never the solution. At a minimum, this Defendant now faces a 15 - year prison sentence. It is unfortunate that he will now be forced to surrender the rights that he earned on his quest for citizenship. His arson days are now extinguished.”
Evidence presented at the guilty plea hearing showed that Cindy Nails caught fire just after business hours on December 7, 2010. The fire destroyed the interior of the building and all its contents. Arson investigators discovered a ball-style trailer hitch, an alarm clock, and a bundle of matches wrapped in duct tape, along with evidence of a flammable accelerant inside the building. The investigation revealed that Dam had purchased a trailer hitch and alarm clock, just like those found in the business, along with a quart of Coleman kerosene, at a nearby Wal-Mart a few weeks earlier. Surveillance video from nearby businesses on the night of the bombing placed Dam and his vehicle at the business that night.
Dam now faces a mandatory minimum sentence of 15 years in prison. Mr. Tarver noted that there is no parole in the federal system. He is presently in the custody of the United States Marshal.
The case was the result of a joint investigation conducted by the ATF, the Georgia State Fire Marshall, and the Hazlehurst Fire Department. Assistant United States Attorney Cameron Heaps Ippolito is prosecuting this case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Two Men Arrested for Drug TraffickingOver One Kilo of Heroin and Bullet Proof Vest Recovered from Search TodayRead the Press Release
BOSTON - A criminal complaint was unsealed today charging two men, from Bourne and New Bedford, with federal narcotics trafficking. The complaint resulted from federal, state and local authorities efforts to reduce violence and drug trafficking in the New Bedford area by identifying and investigating individuals involved in these criminal activities.
Francisco Monteiro, a/k/a Cisco, (“Monteiro”), 32, of Bourne, is charged with conspiracy to distribute heroin; and Junior Lopes (“Lopes”), 34, of New Bedford, is charged with conspiracy to distribute heroin.
During a court authorized search of Lopes’s home today at 162 Apponagansett Street in New Bedford, agents seized approximately one and a half kilograms of heroin as well as a bullet-proof vest. During the search of Monteiro’s residence today at 4D Beach Plum Lane, in Bourne, agents seized packaging materials, cell phones and other evidence consistent with drug trafficking.
Monteiro and Lopes are charged with conspiring among themselves, and others, to distribute over 100 grams of heroin. It is alleged that on Feb. 15, 2013, Monteiro and Lopes arranged and facilitated the sale of almost 100 grams of heroin to a cooperating witness in New Bedford. Federal agents recorded telephone calls to Monteiro where he agreed to provide heroin to a cooperating witness (“cw”). Monteiro and Lopes allegedly drove with the cw to an address in New Bedford where the heroin sale was completed. Monteiro and Lopes further planned and arranged for the sale of an additional 50 grams of heroin to the cw that was to take place on Feb. 25, 2013, although the sale was not completed.As detailed in the complaint, Monteiro and Lopes have extensive criminal histories of violent crimes, including armed robberies of other drug dealers to obtain money to fund their drug dealing activities. Monteiro has prior convictions for drug distribution and unlawful possession of a firearm. In 2003, Lopes was convicted in U.S. District Court in Boston for gun and drug trafficking and received a sentence of 130 months. Lopes is currently on supervised release for those offenses.
The maximum penalty under the statute if convicted for both defendants is a mandatory minimum sentence of 20 years, up to life in prison; a fine of up to $20 million; and a minimum period of supervised release of 10 years.
United States Attorney Carmen M. Ortiz; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Timothy Alben, Superintendent of the Massachusetts State Police; C. Samuel Sutter, Bristol County District Attorney; Sheriff Thomas M. Hodgson of Bristol County; Chief Dennis R Woodside of the Bourne Police Department; and Chief Richard M. Stanley of the Wareham Police Department made the announcement today.
This case is being prosecuted by Christopher Pohl in Ortiz’s Organized Crime Strike Force Unit.
The details contained in the complaint are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.