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16 April 2013
Mt. Carmel Man Sentenced on Child Pornography OffenseRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Donald R. Campbell, 49, of Mt. Carmel, Illinois, was sentenced in Federal Court in Benton on April 11, 2013, to a term of 30 years in prison, to be followed by a lifetime of supervised release after his incarceration, for enticing a minor to engage in sex acts while Campbell videotaped the events.
“Protecting the innocent from predators such as these will always be one of my highest priorities.” said United States Attorney Wigginton. “Such a sentence should serve to not only prevent Campbell from victimizing any more of our children, but to also act as a warning to those who would engage in similar crimes.”
The investigation in this case was conducted by the Federal Bureau of Investigation’s Southern Illinois Cyber Crimes Task Force, and a number of state and local law enforcement agencies.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was prosecuted by Assistant United States Attorney Thomas E. Leggans.
Moundsville Resident Sentenced on Pill Conspiracy ChargeRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
WHEELING, WEST VIRGINIA - A 34-year old Moundsville, West Virginia, resident was sentenced on April 15, 2012, in United States District Court in Wheeling by Judge Frederick P. Stamp, Jr. for her role in a Florida to West Virginia pill ring.
United States Attorney William J. Ihlenfeld, II, announced that: MILLIE F. ROUPE was sentenced to 46 months imprisonment to be followed by three years of supervised release. ROUPE entered a plea of guilty on November 28, 2012, to “Conspiracy to Distribute Schedule II Controlled Substances” from March of 2012 to September 12, 2012, in Moundsville. ROUPE was remanded to the custody of the United States Marshal pending designation to a Federal institution.
In a joint investigation, involving the Marshall County Sheriff’s Department, the DEA, United State Postal Service, and the West Virginia State Police, beginning in the spring of
2012, agents received information that ROUPE’s apartment in Marshall County was being used to distribute pills being brought to West Virginia from Florida typically via rental vehicles. During the investigation, two traffic stops occurred during which $5,500 in drug proceeds were seized which will be forfeited to the United States as proceeds from the drug activity.This case was prosecuted by Assistant United States Attorney John C. Parr.
Mission Woman Sentenced for Theft in Connection with Healthcare and LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota woman convicted of Theft in Connection with Healthcare and Larceny was sentenced on April 12, 2013 by U.S. Magistrate Judge Mark A. Moreno.
Tisha Leader Charge, age 33, was sentenced to 1 year probation on each count, to be served concurrently, a $100 special assessment to the Victim Assistance Fund and restitution in the amount of $357.93.
Leader Charge was indicted by a federal grand jury on November 14, 2012 and pled guilty to the above charges on February 8, 2013.
The charges stem from incidents wherein Leader Charge, between January 1, 2012 and September 30, 2012, stole the personal property of the employees and interns at Indian Health Hospital in Rosebud. During that time period, Leader Charge was working at the Bureau of Indian Affairs Indian Health Service Hospital as a pharmacy technician. She admitted to stealing money out of co-employees’ belongings in the breakroom. The total amount of money stolen was under $1,000. Leader Charge also fraudulently obtained prescription medications from the pharmacy in various ways. She would “short” prescriptions by taking a few of the prescribed pills out of the bottle before dispensing it to the patients. She also took prescribed medications not picked up by a patient and then entered the medications in the computer system as being restocked. Leader Charge admitted to giving some of the stolen medications to other people.
The investigation was conducted by the Office of the Inspector General. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Milwaukee Man charged with Threatening to Kill United States Probation OfficerRead the Press Release
United States Attorney James L. Santelle announced that earlier today, a federal grand jury returned a one-count indictment charging Ramon Alvarado (Age: 29) a resident of Milwaukee, Wisconsin, with threatening to kill his former supervising United States Probation Officer. If convicted, Alvarado faces a maximum of 10 years in prison.
The indictment alleges, that on March 26, 2013, Alvarado threatened to kill an employee of the United States Probation Office in the Eastern District of Wisconsin, with intent to retaliate against the employee on account of the performance of her official duties in violation of Title 18, United States Code, Section 115(a)(1)(B). Alvarado was originally charged via Criminal Complaint on April 5, 2013. Alvarado, a Latin King gang member, was supervised by the United States Probation Office following completion of his term of imprisonment for a 2008 federal RICO conspiracy conviction.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Kelly B. Watzka.
An indictment is merely the formal method of charging an individual and does not constitute evidence of his or her guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Miami Man Sentenced in $1.85 Million Stolen Identity Tax Refund SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), Miami Field Office, Paula Reid, Special Agent in Charge, U.S. Secret Service, Miami Field Office, and Rafael P. Hernandez, Jr., Chief, North Miami Beach Police Department, announced that defendant Frandy Prophete, 34, of Miami, was sentenced today for his participation in a $1.85 million stolen identity tax refund scheme. Specifically, U.S. District Judge William P. Dimitrouleas sentenced Prophete to 61 months in prison, followed by 3 years of supervised release, and restitution in the amount of $1.85 million. Prophete previously pled guilty to one count of conspiracy to file false and fraudulent claims and another count of aggravated identity theft.
According to court documents, Prophete was charged in a multi-count indictment together with defendant Frantz Charles and other co-conspirators for participating in an identity theft tax refund scheme involving the use of the identities of over 900 deceased individuals to file fraudulent income tax returns. The tax refunds generated from the filing of these fraudulent returns were, in turn, deposited into bank accounts controlled by the defendants.
Defendant Charles previously pled guilty to one count of conspiracy to file false and fraudulent claims and one count of aggravated identity theft, and was sentenced on April 10, 2013, by Judge Dimitrouleas to 61 months in prison, followed by 3 years of supervised release, and payment of restitution.
Mr. Ferrer commended the investigative efforts of IRS-CID, the U.S. Secret Service, and the North Miami Beach Police Department. The case is being prosecuted by Assistant U.S. Attorney Jose A. Bonau.
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.
Member of Vermilion Parish Drug Trafficking Organization Sentenced to 10 Years in PrisonRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that Francisco “Pancho” Delgado-Galaviz, 36, of Mexico and a member of a drug trafficking organization based out of Vermilion Parish, was sentenced by U.S. District Judge Elizabeth E. Foote to 10 years in federal prison followed by five years of supervised release for conspiracy to possess with intent to distribute methamphetamine and cocaine.
Delgado-Galaviz, and 11 co-defendants were indicted in June of 2009 on a variety of drug trafficking and firearms charges, along with unlawful use of communication facilities. The Stipulated Factual Basis entered into by both parties at the time of the guilty plea revealed that this drug trafficking organization was responsible for the movement and sale of methamphetamine and cocaine from Mexico into the United States and distribution throughout the Acadiana area. Delgado-Galaviz and his co-conspirators possessed and distributed kilos of methamphetamine and cocaine. The defendant admitted that he, along with another co-conspirator, was a decision maker in the organization. Their source of supply was from Arizona, but they developed a secondary source of supply for this conspiracy in Houston. The defendant’s couriers were often armed with weapons while transporting the illegal substances. Delgado-Galaviz acknowledged that he was specifically responsible for the distribution of approximately 2 kilograms of methamphetamine and approximately 5 kilograms of cocaine. He is the last of 11-co-defendants to be sentenced.
“The arrests and convictions in this case resulted in the elimination of large quantities of methamphetamine and cocaine being distributed from Mexico into the Western District of Louisiana,” Finley said. “The agencies involved in this case worked tirelessly to investigate and remove these dangerous criminals and drugs from our streets. My office, along with our federal, state and local partners, will continue in their efforts to bring drug dealers to justice.”
The Lafayette Drug Enforcement Administration (DEA) Post of Duty, the Vermilion Parish Sheriff’s Office, and the Lafayette Metro Narcotics Task Force investigated the case. United States Attorney Stephanie A. Finley prosecuted the case.Media AdvisoryRead the Press Release
There will be a press conference regarding the sentencing in United States v. Jeffrey Alan Schoon and Roxena Lee Schoon, 12-CR-4070-MWB, at 12:00 p.m., at the United States Attorney’s Office located at the Ho-Chunk Center, 600 4th Street, 6th Floor, Sioux City, Iowa. Assistant United States Attorney Timothy Duax, Forde O. Fairchild, and Sheriffs and County Attorneys for Crawford and Sac Counties, will comment on the case.
Press releases and interview opportunities will be available.
United States Attorney’s Office staff will be available beginning at approximately 11:30 a.m. on April 17, 2013, to escort members of the press with any camera equipment to the conference room after clearing security.
Maryland Resident Re-Sentenced on Firearms ChargeRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
MARTINSBURG, WEST VIRGINIA - A 31-year old Hagerstown, Maryland, resident was resentenced on April 15, 2013, in United States District Court in Martinsburg by Judge Irene M. Keeley.
United States Attorney William J. Ihlenfeld, II, announced that:
ROBERT JOHN SUMMERVILLE, III, was resentenced to 120 months imprisonment to be followed by three years of supervised release. SUMMERVILLE entered a plea of guilty on March 22, 2012, to one count of possession of a firearm on November 7, 2010, in Jefferson County, after having previously been convicted of a crime punishable by imprisonment for a term exceeding one year. SUMMERVILLE was convicted on April 17, 2009, of burglary in Tarrant County, Texas; on February 8, 2005, of assault in the second degree in the Circuit Court of Allegheny County, Maryland; and, on June 15, 2004, of resisting arrest in the Circuit Court of Washington County, Maryland.
On July 5, 2012, SUMMERVILLE was sentenced to 262 months imprisonment, but case was remanded by the Fourth Circuit Court of Appeals for recalculation of SUMMERVILLE’s criminal history as his prior convictions did not make him an Armed Career Criminal.
SUMMERVILLE was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The case was prosecuted by Assistant United States Attorney Paul T. Camilletti and was investigated by the West Virginia State Police, Shepherdstown Police Department the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Maryland Man Pleads Guilty to Traveling into the District of Columbia to Engage in Illicit Sexual Conduct with A MinorRead the Press Release
WASHINGTON – Scott Richard Swirling, 62, of Silver Spring, Md., pled guilty today to traveling interstate to engage in illicit sexual conduct with a minor, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Swirling entered the guilty plea in the U.S. District Court for the District of Columbia. The Honorable John D. Bates is to sentence him on July 11, 2013. Swirling faces a maximum sentence of 30 years of imprisonment as well as a fine of up to $250,000.
According to the government's evidence, on Jan. 7, 2013, Swirling contacted a man he believed to be the father of an under-aged girl on a social network site. That man turned out to be an undercover officer with the FBI's Child Exploitation Task Force. Over the next few days, Swirling engaged in graphic online email and instant message conversations with the undercover officer. During these conversations, Swirling arranged with the undercover officer to meet for the purpose of engaging in sexual acts with the child. Swirling traveled from Silver Spring to a pre-arranged meeting place in Washington, D.C., where he was arrested.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who is prosecuting the case.
13-137Manhattan U.S. Attorney Charges Swiss Lawyer and Swiss Banker with Conspiring to Hide Millions of Dollars in Swiss Bank AccountsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Kathryn Keneally, Assistant Attorney General for the Tax Division, Department of Justice (“DOJ”), and Richard Weber, the Chief of Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced the indictment today of EDGAR PALTZER, a partner at a Swiss law firm (the “Swiss Law Firm”) and a registered attorney in the State of New York, and STEFAN BUCK, the head of private banking and a member of the executive committee at a bank headquartered in Switzerland (“Swiss Bank No. 1”). PALTZER and BUCK are each charged with one count of conspiring with U.S. taxpayer-clients and others to hide millions of dollars in offshore accounts from the IRS and to evade U.S. taxes on the income earned in those accounts.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Edgar Paltzer and Stefan Buck used their professional expertise to guide and encourage their U.S. clients to evade our tax laws. This is simply the latest in an increasingly long list of cases this Office has charged against foreign individuals and entities that allegedly conspired to violate U.S. tax laws, many of which have already been convicted.”
Assistant Attorney General for the DOJ’s Tax Division Kathryn Keneally said: “We learn new information every day about the use of foreign bank accounts to facilitate U.S. tax evasion. Those involved need to balance whether trying to hide money is worth the real risk of discovery and criminal prosecution. Time is running out.”
IRS-CI Chief Richard Weber said: “Today’s indictment is the latest action against foreign bankers and professionals who assist taxpayers with concealing from the IRS their offshore bank accounts and income generated in those accounts. International tax evasion is a high priority for IRS and through our investigative efforts, we are gaining access to more and more information on institutions and individuals involved in offshore tax evasion. IRS Criminal Investigation will use all of our enforcement tools to stop this abuse.”
According to the allegations contained in the Indictment filed today in Manhattan federal court:
PALTZER is a U.S.- and Swiss-trained lawyer who began to practice at the Swiss Law Firm in 1998, in the fields of international private client work, wealth transfer planning, successions, trusts and foundations, and eventually became a partner. PALTZER is licensed to practice in New York State.
In 2007, BUCK worked as a client adviser, and later, as the head of private banking at Swiss Bank No. 1, which provides private banking, asset management, and other services to clients around the world. In December 2012, BUCK became a member of Swiss Bank No. 1’s three-person executive committee.
In March 2009, UBS AG (“UBS”), a Swiss bank that provided private banking services to U.S. taxpayers, entered into a deferred prosecution agreement with the Department of Justice and admitted engaging in a conspiracy to defraud the IRS. In February 2012, Wegelin & Co. (“Wegelin”), another Swiss bank that provided similar services, was indicted by a grand jury in the Southern District of New York for its conduct in conspiring with U.S. taxpayers to evade taxes, and ultimately pled guilty. Between March 2009 and February 2012, Swiss Bank No. 1 experienced an increase of approximately 300% in clients who were U.S. taxpayers. Further, as of September 30, 2012, Swiss Bank No. 1 had approximately 2 billion Swiss francs in assets under management (“AUM”), equating to approximately $2.12 billion. Approximately 882.5 million Swiss francs of this AUM, equating to approximately $938 million, or approximately 44 percent of Swiss Bank No. 1’s total AUM, was held on behalf of U.S. taxpayers living in the United States.
PALTZER and BUCK conspired with various U.S. taxpayers and others to ensure that their clients could hide their Swiss bank accounts and the income generated in these accounts from the IRS. The defendants opened and managed undeclared accounts on behalf of U.S. taxpayers at Swiss Bank No. 1 and other Swiss banks. PALTZER and BUCK helped U.S. taxpayers open undeclared accounts at Swiss Bank No. 1 after these U.S. taxpayers had been informed by other Swiss banks that they had to close their undeclared accounts.
BUCK and PALTZER also helped to repatriate funds to the U.S. taxpayers from their undeclared accounts in Switzerland in ways that were designed to ensure that U.S. authorities would not discover these undeclared accounts. For example, PALTZER helped a U.S. taxpayer repatriate assets in the form jewelry in order to avoid detection of an account in Switzerland. BUCK attempted to dissuade a U.S. taxpayer with an undeclared account at Swiss Bank No. 1 from entering the IRS’s voluntary disclosure program. In substance, he told the taxpayer that the account did not need to be disclosed to the IRS because Swiss Bank No. 1 operated only in Switzerland, and the U.S. rules did not apply.
PALTZER, 56, a dual U.S.-Swiss citizen, and BUCK, 32, a Swiss citizen, both reside in Switzerland. Neither defendant has been arrested.
PALTZER and BUCK each face a maximum sentence of five years in prison, a maximum term of three years of supervised release, and a fine of the greatest of $250,000, or twice the gross pecuniary gain derived from the offense or twice the gross pecuniary loss to the victims.
Mr. Bharara praised the outstanding efforts of IRS-CI in the investigation, which he noted is ongoing. He also thanked DOJ’s Tax Division for their significant assistance in the investigation.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Daniel W. Levy, Jason H. Cowley, and David B. Massey and are in charge of the prosecution.
The charges and allegations contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Edgar Paltzer and Stefan Buck Indictment
Manhattan U.S. Attorney Charges 34 Members and Associates of Two Russian-American Organized Crime Enterprises with Operating International Sportsbooks That Laundered More Than $100 MillionRead the Press Release
One of the Enterprises Allegedly Laundered Tens of Millions of Dollars from Russia and the Ukraine through Cyprus Shell Companies and Bank Accounts into the United States
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Toni Weirauch, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), and Raymond W. Kelly, the Police Commissioner of the City of New York (“NYPD”), announced today the unsealing of charges against 34 alleged members and associates of two related Russian-American organized crime enterprises, including a Russian “Vor,” for a range of offenses including the operation of at least two international bookmaking organizations – or “sportsbooks” – that catered to multi-millionaires and billionaires in the U.S., Russia, and the Ukraine. One enterprise, the Taiwanchik-Trincher Organization, run by VADIM TRINCHER, is alleged to have laundered tens of millions of dollars from Russia and the Ukraine through Cyprus and into the U.S. The other enterprise, the Nahmad-Trincher Organization, run by ILLYA TRINCHER, the son of VADIM TRINCHER, is alleged to have been financed by, among other entities, a prestigious art gallery in New York City.
In connection with the Indictment unsealed today in the Southern District of New York, 29 defendants have been arrested in New York, Philadelphia, Detroit, and Los Angeles. The 20 defendants taken into custody today in New York were presented and arraigned in Manhattan federal court before U.S. Magistrate Judge James C. Francis, IV this afternoon. The remaining defendants arrested today will be presented in federal court in Philadelphia, Detroit, and Los Angeles this afternoon. An additional defendant, HILLEL NAHMAD, is expected to surrender in Los Angeles later today. The remaining four defendants – DONALD McCALMONT, BRYAN ZURIFF, WILLIAM EDLER, and ALIMZHAN TOKHTAKHOUNOV – are fugitives and are still being sought.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, these criminal enterprises were vast and many-tentacled, with one of them reaching across the Atlantic to launder tens of millions of dollars from Russia to the U.S. via Cyprus and in some cases, back again. International money laundering is a serious offense, and we will do everything within our power to inhibit those who seek to sanitize the proceeds of crime through legitimate investment vehicles in this country from doing so.”
FBI Assistant Director-in-Charge George Venizelos said: “Today’s charges demonstrate the scope and reach of Russian organized crime. One of the principal defendants is a notorious Russian ‘thief-in-law’ allegedly directing an international conspiracy through Cyprus to the U.S. The defendants are alleged to have handled untold millions in illegal wagers placed by millionaires and billionaires, laundered millions, and in some cases are themselves multimillionaires. Crime pays only until you are arrested and prosecuted.”
IRS-CI Special Agent-in-Charge Toni Weirauch said: “International money laundering is not a victimless crime. Rather, it is a national and global threat that can provide criminal enterprises with resources to conduct further illegal activity. The laundering of illegal gambling proceeds, in particular, facilitates the underground, untaxed economy which, in turn, harms our nation’s economic strength.”
NYPD Commissioner Raymond W. Kelly said: “The subjects in this case ran high-stakes illegal poker games and online gambling, proceeds from which are alleged to have been funneled to organized crime overseas. The one thing they didn't bet on was the New York City police and federal investigators’ attention. I commend the NYPD Organized Crime Investigations Division and their partners in the FBI and U.S. Attorney Bharara's office for identifying and bringing the members of this organization to justice.”
According to the allegations in the Indictment unsealed today in Manhattan federal court and other court documents:
The Taiwanchik-Trincher Organization
The Taiwanchik-Trincher Organization is a nationwide criminal enterprise with strong ties to Russia and Ukraine. The leadership of the organization ran an international sportsbook that catered primarily to Russian oligarchs living in Russia and Ukraine and throughout the world. The Taiwanchik-Trincher Organization laundered tens of millions of dollars in proceeds from the gambling operation from Russia and the Ukraine through shell companies and bank accounts in Cyprus, and from Cyprus into the U.S. Once the money arrived in the U.S, it was either laundered through additional shell companies or invested in seemingly legitimate investments, such as hedge funds or real estate.
The Taiwanchik-Trincher Organization operated under the protection of ALIMZHAN TOKHTAKHOUNOV, who is known as a “Vor,” a term translated as “Thief-in-Law,” that refers to a member of a select group of high-level criminals from the former Soviet Union. TOKHTAKHOUNOV used his status as a Vor to resolve disputes with clients of the high-stakes illegal gambling operation with implicit and sometimes explicit threats of violence and economic harm. During a single two-month period, TOKHTAKHOUNOV was paid $10 million for his services by the Taiwanchik-Trincher Organization. TOKHTAKHOUNOV is also under indictment in the Southern District of New York for his alleged involvement in bribing officials at the 2002 Winter Olympics held in Salt Lake City, Utah.
Nahmad-Trincher Organization
The Nahmad-Trincher Organization is a nationwide criminal enterprise with leadership in Los Angeles, California, and New York City. The organization ran a high-stakes illegal gambling business that catered primarily to multi-millionaire and billionaire clients. The organization utilized several online gambling websites that operated illegally in the U.S. Debts owed to the Nahmad-Trincher Organization sometimes reached hundreds of thousands of dollars and even millions. One client, who lost approximately two million dollars to the organization, surrendered his plumbing company to the organization as payment of the debt.
The Nahmad-Trincher Organization was financed by, among others, HILLEL NAHMAD, a/k/a “Helly,” and the art gallery he operates in New York City, the Helly Nahmad Gallery. NAMHAD is also charged with conspiring to commit wire fraud in connection with the sale of a painting worth approximately $250,000.
The organization laundered tens of millions of dollars through various companies and bank accounts. It was assisted in its money laundering by RONALD UY, a branch manager at a bank in New York City. UY advised ILLYA TRINCHER on how to structure financial transactions so as to avoid bank reporting requirements.
Illegal Poker Rooms
The Indictment also charges various defendants with promoting and operating high-stakes illegal poker rooms in and around New York City, including EDWIN TING, MOLLY BLOOM, and EUGENE TRINCHER, who is the son of VADIM and brother of ILLYA. The poker games operated by the defendants resulted in gambling debts as high as hundreds of thousands of dollars.
A chart containing the ages, residency information, and charges against the defendants, as well as the maximum penalties they face is attached.
Mr. Bharara thanked the FBI, specifically the Eurasian Organized Crime Squad of the New York Office, IRS-CI, and the NYPD for their work in the investigation.
The case is being prosecuted by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Harris Fischman, Peter Skinner, and Joshua A. Naftalis of the Organized Crime Unit are in charge of the prosecution. Assistant U.S. Attorney Alexander Wilson of the Office’s Asset Forfeiture Unit is responsible for the forfeiture aspects of the case.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Click here to view chart(s)
U.S. v. Alimzhan Tokhtakhounov, et al. Indictment
Lincoln Man Sentenced for Conspiracy to Distribute Methamphetamine, Cocaine, and MarijuanaRead the Press Release
United States Attorney Deborah R. Gilg announced that on April 15, 2013, Luis Orta Espinoza, age 27 of Lincoln, was sentenced to 12 years and seven months (151 months) in prison for his role in a conspiracy to distribute methamphetamine, cocaine, and marijuana between June of 2008 and April of 2012. Following the prison term, Orta Espinoza will serve five years on supervised release.
Orta Espinoza was held responsible for the distribution of at least 1.5 kilograms of methamphetamine mixture (approximately 3 pounds); at least 50 grams of actual methamphetamine (approximately 1 ¾ ounces); at least 2 kilograms of cocaine (approximately 4 ½ pounds); and at least 80 kilograms of marijuana (approximately 176 pounds). Between December of 2011 and April of 2012, an undercover officer made a number of purchases of methamphetamine from a person who was working for Orta Espinoza in the distribution of methamphetamine. In May of 2011, a confidential informant purchased a small amount of cocaine from Orta Espinoza, and in February of 2012, a confidential informant purchased approximately three grams of mostly pure methamphetamine from Orta Espinoza. Other information provided to law enforcement indicated that Orta Espinoza was also involved in the distribution of marijuana.
The matter was investigated by the Lincoln/Lancaster County Narcotics Task Force, which includes officers of the Lincoln Police Department, the Lancaster County Sheriff=s Department, the Federal Bureau of Investigation, (FBI), and the University of Nebraska-Lincoln Police Department.
Lake Andes Man Sentenced for Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lake Andes, South Dakota man charged with sexual abuse was sentenced on April 15, 2013 by U.S. District Judge Karen E. Schreier. Ray Flying Hawk, age 43, was sentenced to 48 months in custody.
Flying Hawk was indicted for sexual abuse by a federal grand jury on August 14, 2012, and pled guilty on January 15, 2013.
In April of 2012, Flying Hawk engaged in a sexual act with a person who was incapable of appraising the nature of the conduct and physically incapable of communicating an unwillingness to engage in such act.
This case was investigated by the Bureau of Indian Affairs Law Enforcement Services - Yankton Agency, and the Federal Bureau of Investigation. Assistant U.S. Attorney Thomas J. Wright prosecuted the case.
Flying Hawk was immediately turned over to the custody of the U.S. Marshal.
Lafayette Businessman Sentenced for Tax EvasionRead the Press Release
LAFAYETTE, La. – The day after the annual tax filing deadline United States Attorney Stephanie A. Finley announced that Gary M. Scott, 61, of Lafayette, was sentenced by U.S. District Judge Elizabeth E. Foote on one count of tax evasion to two years in prison, three years of supervised release and ordered to pay $362,961.65 in restitution to the Internal Revenue Service(IRS) in unpaid taxes.
According to the Stipulated Factual Basis in the plea agreement, Scott earned more than $2.4 million in gross receipts between 2004 and 2009, and failed to file timely tax returns for those years. In an attempt to avoid paying his tax liability and evade assessment of future income taxes, Scott intentionally hid assets and went to great lengths to remove those assets out of his name. He cashed checks totaling approximately $722,000 at local check cashing stores. Scott received wire transfers from customers into a bank account established under a third party’s name. The third party stated that Scott told him he needed a third party to open a bank account because Scott owed money to the IRS.
Each year, U.S. Attorneys’ Offices around the country work with the IRS to enforce the nation’s tax laws.
“Our office will continue to prosecute those who intentionally violate tax laws. Internal Revenue Service agents and federal prosecutors are working together to protect the public and hold violators accountable,” said U.S. Attorney Finley.The U.S. Attorney’s Office has prosecuted cases for Failure to Report Income, “Structuring” to Hide Income, Fraudulent Tax Preparers, and Stolen Identity Refund Fraud.
“The defendant attempted to hide income from the IRS in order to avoid paying taxes,” Finley said. “His actions were a willful violation of tax laws. This should serve as a reminder to those who refuse to play by the rules that they will be prosecuted to the fullest extent of the law.”
“The term voluntary compliance means that each of us is responsible for filing a tax return when required and for paying the correct amount of tax,” according to IRS Criminal Investigation’s Acting Special Agent in Charge Damon Rowe. “That responsibility should not be taken lightly. Mr. Gary Scott chose to ignore his duty to file and pay taxes and is now a convicted felon with a prison term to serve.”
The IRS office of criminal investigations in New Orleans conducted the investigation. Assistant U.S. Attorney Howard Parker prosecuted the case.
Kuchera Brothers Plead Guilty to Fraud Against the Government and ConspiracyRead the Press Release
Fines and Penalties of $4M to be Paid Back to USA
JOHNSTOWN, PA. - Two brothers who owned a major defense contracting firm waived indictment and pleaded guilty today in federal court to charges of major fraud against the government and conspiracy, United States Attorney David J. Hickton announced.
William Kuchera, 58, of Summerhill, Penn., and Ronald Kuchera, 51, of Johnstown, Penn., pleaded guilty to two counts before United States District Judge Kim Gibson.
In connection with the guilty plea, the court was advised that William and Ronald Kuchera owned and managed Kuchera Defense Systems, Inc. (KDS), a contractor for the Department of Defense. KDS submitted cost certifications to the government containing unallowable expenses that inflated costs for overhead and general and administrative expenses. These unallowable expenses included the leasing of a private airplane, vacations to Jamaica, personal car leases, improvements on a private residence and lobbying fees.
The Kuchera brothers also submitted a false invoice for $650,000 to Coherent Systems International, Inc. (Coherent), a defense contractor owned by Richard S. Ianieri. As the prime contractor, Coherent was responsible for an $8 million Department of Defense contract for the Ground Mobile Gateway Systems, which involved the development of a new prototype unmanned vehicle that was designed to prevent friendly-fire incidents. The invoice sought payment for a component that had never been manufactured or delivered to Coherent. After receiving the $650,000 payment from Coherent, the Kuchera brothers kicked back to Ianieri approximately $200,000.
The court was further advised that each of the Kuchera brothers filed false income tax returns for themselves and KDS. Their personal tax returns were false because they failed to disclose as income certain personal expenses paid for by their companies. The KDS tax returns were false because they included as business deductions certain expenses that were personal expenditures of the two brothers. The brothers also caused the submission of a false corporate tax return which illegally claimed the kickback to Ianieri as a legitimate business expense.
In July 2009, Ianieri pleaded guilty to a one-count criminal information charging him with soliciting kickbacks and filing false purchase orders related to an Air Force contract in Florida. In February 2010, he was sentenced to five years probation and was ordered to pay a $200,000 fine.
Each brother also agreed to pay a $50,000 criminal fine to the United States. Ronald Kuchera agreed to the civil forfeiture of an additional $450,000 and agreed to make payment to the Internal Revenue Service in the amount of $121,313, which represents taxes owed due to his filing of false personal tax returns and his share of the taxes owed by KDS. William Kuchera similarly agreed to the civil forfeiture of $450,000, and to pay restitution to the IRS in the amount of $257,168.
The Kuchera brothers and KDS will also pay $2.7 million to resolve their civil liabilities with the United States Department of Defense under the False Claims Act. Ronald Kuchera will pay $950,000 and William Kuchera will pay $829,566. KDS, now doing business as Currency, Inc., will pay $920,434 as a result of an audit conducted by the Defense Contract Audit Agency, which uncovered inflated billings for overhead.
“The Kucheras cheated the government by claiming improper reimbursements, submitting a false invoice, and then kicking back $200,000 to the prime contractor,” said U.S. Attorney Hickton. “Such blatant and outrageous fraud against the United States cannot and will not be tolerated.”
Judge Gibson scheduled sentencing for Oct. 7, 2013. The law provides for a total sentence of 15 years in prison, a fine of $1,250,000, 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.
Assistant United States Attorneys Nelson P. Cohen and Paul E. Skirtich are prosecuting this case on behalf of the government.
The Defense Criminal Investigative Service, the Defense Contract Audit Agency, the U.S. Internal Revenue Service, Criminal Investigations, and the Federal Bureau of Investigation, conducted the investigation that led to the prosecution of William Kuchera and Ronald Kuchera.
Kaufman County Man Guilty of Methamphetamine ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 44-year-old Terrell, Texas man has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
James Clinton Squires pleaded guilty to conspiracy to distribute and possession with intent to distribute methamphetamine today before U.S. Magistrate Judge Judith K. Guthrie.
According to information presented in court, on Aug. 2, 2012, Squires distributed approximately 8 grams of methamphetamine to Jason Ray Ragan in Terrell, Texas. Squires knew Ragan intended to return to Gregg County, Texas with the methamphetamine for redistribution in the Eastern District of Texas. Squires also admitted to possessing more than 50 grams of methamphetamine at his residence on Aug. 3, 2012. In addition to supplying drugs to Ragan, Squires also traveled to Tyler, Texas; Lindale, Texas, and Pritchett, Texas to distribute methamphetamine. A federal indictment was returned on Sep. 12, 2012 charging Squires and Ragan with federal drug crimes.
Ragan pleaded guilty on Feb. 6, 2013 and is awaiting sentencing. Squires faces a minimum of 10 years and up to life in federal prison at sentencing. A sentencing date has not been set.
This case is being investigated by the Drug Enforcement Administration and the Texas Department of Public Safety prosecuted by Assistant U.S. Attorney Mary Ann Cozby.
Kansas City, Kan., Man Pleads Guilty to Enticing A California Girl for SexRead the Press Release
KANSAS CITY, KAN. – A man from Kansas City, Kan., has pleaded guilty to using the Internet to entice a 12-year-old girl in California to send him pictures of her naked, U.S. Attorney Barry Grissom said today.
Robert Dobbertin, 40, Kansas City, Kan., pleaded guilty to one count of enticing a minor. In his plea, he admitted that in October 2008 a woman in Orange County, Calif., discovered that her 12-year-old daughter was involved in an on-line relationship with him.
The girl met Dobbertin through the Web site Teenspot.com. Dobbertin sent instant messages to the girl and talked sexually to her on the phone while engaged in masturbation. He asked for and received naked photographs of her. He asked her to perform sexual acts on herself. He sent her a video of himself masturbating and a digital photo of his penis.
When investigators served a search warrant at Dobbertin’s home in May 2009 they seized a computer containing child pornography and the records of two Yahoo! Messenger chats in which Dobbertin talked about his plans to travel to California to visit the girl and expressed a desire to have sex with her.
If convicted, he faces a penalty of not less than 10 years and not more than life in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Christine Kenney is prosecuting.
Jury Convicts Darke County Man of Receipt and Possession of Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON – A U.S. District Court jury here convicted Richard Trepanier, 40, of Gettysburg, Ohio of one count of receipt of child pornography and one count of possession of child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Robert A. Hughes, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), announced the verdict returned today following a trial that began April 10.
Testimony during the trial showed that Trepanier using the name “Wingman66” contacted an Australian Federal Police undercover officer patrolling the internet in February 2008 and offered him images of child pornography. The Australian authorities tracked the user name to Trepanier and sent the information to the FBI’s office in Cincinnati.
FBI agents interviewed Trepanier who consented to a search of his computer by the Miami Valley Regional Computer Forensics Laboratory. Their analysis identified approximately 56 images of child pornography and evidence that Trepanier was trading child pornography.
“This case demonstrates the international cooperation that is necessary to protect children from exploitation,” U.S. Attorney Stewart said.
The penalty for receipt of child pornography is a prison sentence of at least five and up to 20 years in prison. Possession of child pornography is punishable by up to ten years in prison. Judge Thomas M. Rose presided over the trial and remanded Trepanier to the custody of the U.S. Marshals Service immediately after the jury returned their verdict. Judge Rose will schedule a date for sentencing following an investigation by the court.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
U.S. Attorney Stewart commended the cooperative investigation by the agencies involved, as well as Dayton Branch Chief Laura Clemmens and Assistant U.S. Attorney Christy Muncy, who are representing the United States in this case.
Joseph Mitchell Casil Sentenced for Concealment of A Material FactRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced today that defendant JOSEPH MITCHELL CASIL was sentenced by Chief Judge Frances Tydingco-Gatewood in the United States District Court, to twelve (12) months imprisonment for the offense of Concealment of a Material Fact. After defendant serves his term of imprisonment, he will be placed on supervised release for three years and required to perform community service.
Casil was aware that federal Marshals with the United States Marshals Service (USMS) were searching for a felony fugitive. Casil lied to the United States Marshals about the fugitive’s location. Casil’s lies to the Marshals caused the Marshals to unnecessarily extend their surveillance, but also delayed the arrest of the fugitive.
U.S. Attorney Limtiaco states, “This defendant interfered in the timely capture of a felony fugitive who was fleeing arrest for a methamphetamine distribution offense. An offense of this type places not only the United States Marshals at risk, but also members of the community who have a fleeing felon in their midst. Individuals who affirmatively mislead United States Marshals in the performance of their duties will face stiff penalties in the United States District Court.”
U.S. Attorney Limtiaco noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Neighborhood (PSN) Initiative, a nationwide commitment to aggressively prosecute defendants who engage in drug distribution, gang involvement and violent crime.
Assistant U.S. Attorney Rosetta San Nicolas prosecuted the case for the United States. U.S. Attorney Limtiaco commends the investigative efforts of the United States Marshals Service.
Johnstown Woman Facing Heroin Distribution ChargeRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been indicted by a federal grand jury in Johnstown on a charge of distributing heroin, United States Attorney David J. Hickton announced today.
The indictment named Desalynn L. Coleman, 32, as the sole defendant.
According to the indictment presented to the court, on Oct. 30, 2012, Coleman distributed less than 100 grams of heroin.
The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, 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, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Johnstown Man Indicted on Federal Drug ChargesRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been indicted by a federal grand jury in Johnstown on charges of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
The two-count indictment named Nieves Calderon, III, 36, as the sole defendant.
According to the indictment, on Nov. 19, 2012, Calderon distributed a quantity of alprazolam, a controlled substance, and on Feb. 19, 2013, he possessed less than 100 grams of heroin with the intent to distribute it.
The law provides for a maximum total sentence of 25 years in prison, a fine of $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Johnstown Man Charged with Distributing HeroinRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been indicted by a federal grand jury in Johnstown on a charge of distributing heroin, United States Attorney David J. Hickton announced today.
The indictment named Damian C. Jeffers, Sr., 42, as the sole defendant.
According to the indictment presented to the court, on Jan. 7, 2013, Jeffers distributed less than 100 grams of heroin.
The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, 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, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Jeffrey James Milliron Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on April 16, 2013, before Senior U.S. District Judge Charles C. Lovell, JEFFREY JAMES MILLIRON appeared for sentencing. MILLIRON was sentenced to a term of:
Probation: 5 years, with 6 months GPS/house arrest
Special Assessment: $100
Restitution: $33,318
MILLIRON was sentenced in connection with his guilty plea to making false statements.
In an Offer of Proof filed by Assistant U.S. Attorney Timothy J. Racicot, the government stated it would have proved at trial the following:
In April 2010, the Social Security Administration ("SSA") received information from Lewis and Clark County's Office of Public Assistance that J.P., a long-time recipient of Supplemental Security Income ("SSI"), was married and working at a tattoo shop in Helena. Marital status, living arrangements, and employment are among the factors that SSA analyzes in order to determine eligibility for SSI benefits.
SSA opened an investigation and J.P. was interviewed on September 10, 2010, by a claims representative. The representative confronted J.P. about her marriage and her employment, both of which J.P. denied. After leaving the interview, she returned a short time later with a letter from MILLIRON that claimed J.P. was not married to MILLIRON, did not live with him, and did not work at his tattoo parlor.
In February 2011, MILLIRON's probation officer was interviewed and stated that he observed J.P. and MILLIRON living together every time he visited MILLIRON and that J.P. worked at the tattoo parlor. Another probation officer provided consistent information, and produced reports filled out by MILLIRON that indicated he was living with J.P. from January 2007 through at least January 2011.
On February 24, 2011, both MILLIRON and J.P. were interviewed. MILLIRON initially claimed that he was not married and stood by the letter he wrote in September 2010. However, when confronted with his marriage license, MILLIRON admitted that he was married, that he wrote the letter, and that he made a false statement to the SSA. He admitted that he knew that his marriage to J.P. would affect her SSI entitlement and that they concealed their marriage so she could continue to receive SSI payments. MILLIRON also admitted that J.P. worked at the tattoo parlor and earned anywhere from $100 to $800 per month.
The investigation was conducted by the Social Security Administration - Office of Inspector General.
Jefferson County Man Pleads Guilty in Oxycodone Trafficking SchemeRead the Press Release
PITTSBURGH - A resident of Clearfield, Pa., pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Jason Shaffer, 38, pleaded guilty on Monday to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that between February 2010 and September 2011, a conspiracy to distribute thousands of oxycodone tablets existed in Jefferson County in Northwestern Pennsylvania, and surrounding counties. Jason Shaffer conspired to distribute these drugs, selling them on the street after purchasing them for $25-$30 apiece. Oxycodone is a highly-addictive narcotic drug that is frequently abused in Western Pennsylvania.
Judge Cercone scheduled sentencing for Aug. 12, 2013 at 10 a.m. The law provides for a total sentence of up to 20 years in prison, a fine not to exceed $1,000,000, 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 Gregory J. Nescott is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the Pennsylvania State Police conducted the investigation that led to the prosecution of Jason Shaffer. The Jefferson County District Attorney's Office also assisted in a related investigation targeting other oxycodone distributors.
Indiana Man Sentenced to 20 Years in Prison for Religiously Motivated Attack on Toledo-Area MosqueRead the Press Release
An Indiana man was sentenced to 20 years in prison for hate crimes stemming from the arson of the Islamic Center of Greater Toledo, law enforcement officials announced today.
U.S. District Judge Jack Zouhary sentenced Randolph Linn, 52, of St. Joe, Indiana. Linn pleaded guilty in December to three counts: (1) intentionally defacing, damaging and destroying religious real property because of the religious character of that property; (2) using fire to commit a felony and (3) using and carrying a firearm to commit a crime of violence.
“Defendant Randy Linn attempted to burn down a mosque because of the religion of its members,” said Deputy Assistant Attorney General for the Civil Rights Division Roy L. Austin Jr. “The Civil Rights Division will continue to partner with the FBI and U.S. Attorney’s Offices around the country to ensure that anyone who desecrates or burns a place of religious worship because of the creed practiced there is brought to justice.”
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, said: “Hate crimes like this seek to damage more than buildings, they take aim at our American way of life. But today’s 20-year prison sentence and the coming together of this community to support our Muslim neighbors show that our freedoms are stronger and more resilient than this man’s hatred.”
Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office, said: “We are pleased that Randall Linn got a significant sentence for his destructive act of setting fire to a sacred place of worship. The FBI, along with its federal, state, and local law enforcement partners, remains committed to protecting the rights of all citizens to practice their chosen religion by enforcing the laws that defend those liberties.”
“This sentence is the culmination of the tireless efforts of so many agencies to bring this case to justice,” said Robin Shoemaker, Special Agent in Charge, Columbus Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives. “Criminal damage to a house of worship is taken very seriously by ATF.”
According to court documents, Linn left his home on Sept. 30, 2012, in a red four-door Chevrolet Sonic. Inside the vehicle were numerous firearms and three red gas cans.
Linn stopped at a gas station near Perrysburg, Ohio, and filled the three gas can, then drove to the Islamic Center of Greater Toledo. Linn made numerous efforts to enter the Islamic Center before gaining entry. He walked through several rooms with a handgun in his left hand before exiting, then returning with a red gas can, according to court documents.
Linn then entered the prayer room on the second floor and poured gasoline on the prayer rug, a large Oriental-style rug used by members of the Islamic Center during prayer services. He then set fire to the prayer rug, according to court documents.
Linn acknowledges he intentionally set the fire because of the religious character of the Islamic Center property, according to court documents.
Linn agrees to pay restitution and understands that the amount may exceed $1 million due to the amount of fire and water damage sustained by the Islamic Center, according to court documents.
This case is being prosecuted by Assistant U.S. Attorneys Bridget M. Brennan, Ava Dustin and Special Assistant U.S Attorney Gwen Howe-Gebers.
This case was investigated by the Perrysburg Township Police Department, the State of Ohio Fire Marshal, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation.
Harolyn Bonner Pleads Guilty to Theft of Government MoneyRead the Press Release
HAROLYN BONNER, age 49, a resident of New Orleans, Louisiana, pled guilty in federal court today before U. S. District Court Judge Lance M. Africk to theft of government money, announced U. S. Attorney Dana J. Boente.
According to court documents, from June 2009 through May 2012, BONNER stole approximately $23,710 from the Social Security Administration by obtaining benefits to which she was not entitled. BONNER had managed disability benefits on behalf of her adult son. When her son died in 2009, the benefits should have terminated. However, BONNER continued to receive the benefits and converted them to her personal use knowing that she was not entitled to them. On at least two occasions after her son’s death, BONNER submitted written reports to the Social Security Administration representing that her son continued to reside with her and that she was using the payments for his food, housing, and other needs.
BONNER faces a maximum term of imprisonment of 10 years, a fine of $250,000 and 3 years of supervised release following any term of imprisonment. Sentencing is set for July 25, 2013.
The case was investigated by the Social Security Administration-Office of Inspector General and prosecuted by Assistant United States Attorney Chandra Menon.
(Download Indictment )
Grand Forks Woman Pleads Guilty to False StatementsRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on April 16, 2013, Chantel Raine Monteith of Grand Forks, N.D., pleaded guilty before U.S. District Judge Ralph R. Erickson to a charge of false statements.
Monteith, 24, pleaded guilty to making false statements during an interview with a special agent from the Federal Bureau of Investigation.
The incident occurred in May of 2011 in the District of North Dakota.
The charge of false statements carries a statutory maximum penalty of five years’ imprisonment.
The case was investigated by the Federal Bureau of Investigation.
Sentencing for Monteith has been scheduled July 12, 2013, in U.S. District Court in Fargo, North Dakota, at 12:45.
Assistant U.S. Attorney Janice M. Morley is prosecuting the case.
Fourth Florida Man Is Charged in A Superseding Indictment for Conspiracy to Illegally Transport Destructive Devices and Machine GunsRead the Press Release
CARLOS CABRERA, age 42, a resident of Orlando, Florida, was charged today in a two-count superseding indictment by a Federal Grand Jury for his role in a conspiracy to transport destructive devices (M-60 Grenades) and machine guns (AK-47 automatic assault rifles and Colt M-4 automatic assault rifles), announced U.S. Attorney Dana J. Boente.
According to the superseding indictment, JAIME JAUREGUI, RUBEN JAUREGUI, FRANCISCO MALDONADO and CARLOS CABRERA conspired with each other and others to transport firearms, which are deemed destructive devices and machineguns, including thirty M-60 Grenades, and sixty Colt M4 automatic assault rifles and fifty AK-47 automatic assault rifles from the Eastern District of Louisiana to Texas, Florida, and elsewhere. The conspiracy count alleges that on four occasions from January 2012 through March 21, 2013, JAIME JAUREGUI met with undercover agents in St. Tammany Parish to negotiate the purchase more than 100 fully automatic assault rifles, grenade launchers, grenades, and night vision goggles, some of which were destined for a Mexican drug trafficking cartel. JAIME JAUREGUI provided a cash deposit of approximately $46,000 during those meetings. JAIME JAUREGUI hired FRANCISCO MALDONADO, RUBEN JAUREGUI and CARLOS CABRERA to assist him with transporting the weapons to the final destinations. None of the men have federal firearms or export licenses. The conspiracy count further alleges that the defendants conspired to transport the weapons in the course of engaging in the business of dealing firearms without a license. JAIME JAUREGUI is also charged with one count of illegal possession of unregistered firearms, specifically, two Colt M4 automatic assault rifles.
If convicted of the conspiracy count, each defendant faces a maximum penalty of 5 years imprisonment, a $250,000 fine, and a 3 year term of supervised release. JAIME JAUREGUI faces additional penalties for the illegal firearms possession charge of up to 10 years imprisonment, a $250,000 fine, and a 3 year term of supervised release.
U. S. Attorney Boente reiterated that the superseding indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being investigated by Special Agents of Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of U.S. Customs and Border Protection, the Louisiana State Police, and the St. Tammany Parish Sheriff’s Office. Prosecution is being handled by Special Assistant United States Attorney Robert Weir.
(Download Superseding Indictment )
Former Investment Banker and His Associate Plead Guilty in San Francisco to Insider Trading SchemeRead the Press Release
A former San Francisco investment banker and his college friend both pleaded guilty today for their roles in an insider trading scheme involving two impending corporate mergers, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Northern District of California Melinda Haag.
Jauyo Lee, aka “Jason Lee,” 29, of New York, and Victor Chen, 29, of Sunnyvale, Calif., both pleaded guilty before U.S. District Judge Richard Seeborg in the Northern District of California to one count of conspiracy to commit securities fraud and one count of securities fraud. Lee and Chen were charged in a criminal information on March 21, 2013.
“Insider trading undermines ordinary investors’ faith in our financial markets, and the Justice Department has zero tolerance for it,” said Acting Assistant Attorney General Raman. “Today's guilty pleas show that you cannot trade on inside information, pocket the profit and expect to escape responsibility. Having now admitted their conduct, Mr. Lee and Mr. Chen must face the consequences.”
“Securities professionals cannot exploit their positions of trust to enrich themselves and their friends,” said U.S. Attorney Haag. “Those tempted to corrupt our markets in this manner should know: the government will get to the bottom of suspicious trading and prosecute securities fraud vigorously.”
According to the plea agreements, Lee, who worked as an investment banker in the San Francisco office of Leerink Swann LLC, disclosed inside information to Chen, a friend from college, about two impending mergers involving Leerink clients. Between Aug. 26, 2009, and Sept. 5, 2009, Lee disclosed inside information to Chen about the merger of Leerink’s client, Syneron Medical Ltd., and Candela Corporation, a medical device company publicly traded on the NASDAQ stock market. Chen used the inside information to buy shares of Candela. After the merger was announced, Candela’s stock price increased more than 40 percent and Chen sold his shares for a gain of approximately $62,589.
Between June 1 and 13, 2010, Lee also provided Chen with inside information about the impending merger of Somanetics Corporation and a subsidiary of Covidien plc. Leerink was the lead financial advisor to Somanetics, which also was publicly traded on the NASDAQ. Chen used the inside information to buy shares and options of Somanetics. Following the merger announcement, the price of Somanetics stock increased more than 30 percent and Chen ultimately realized a profit of approximately $547,510.
Lee and Chen are scheduled for sentencing on July 23, 2013, before Judge Seeborg. The maximum penalty for conspiracy to commit securities fraud is five years in prison, and the maximum penalty for securities fraud is 20 years in prison.
This case is being prosecuted by Trial Attorney Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Robert S. Leach of the Northern District of California. The prosecution is the result of a one-year investigation by the FBI with substantial assistance from the Chicago Regional Office of the Securities and Exchange Commission, which initiated a civil enforcement action against Lee and Chen and referred the matter to the Department of Justice.
This prosecution 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 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Former Investment Banker and His Associate Plead Guilty in San Francisco to Insider Trading SchemeRead the Press Release
San Francisco - A former San Francisco investment banker and his college friend both pleaded guilty today for their roles in an insider trading scheme involving two impending corporate mergers, announced U.S. Attorney Melinda Haag and Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division.
Jauyo Lee, aka "Jason Lee," 29, of New York, and Victor Chen, 29, of Sunnyvale, Calif., both pleaded guilty before U.S. District Judge Richard Seeborg in the Northern District of California to one count of conspiracy to commit securities fraud and one count of securities fraud. Lee and Chen were charged in a criminal information on March 21, 2013.
"Securities professionals cannot exploit their positions of trust to enrich themselves and their friends," said U.S. Attorney Haag. "Those tempted to corrupt our markets in this manner should know: the government will get to the bottom of suspicious trading and prosecute securities fraud vigorously."
"Insider trading undermines ordinary investors' faith in our financial markets, and the Justice Department has zero tolerance for it," said Acting Assistant Attorney General Raman. "Today's guilty pleas show that you cannot trade on inside information, pocket the profit and expect to escape responsibility. Having now admitted their conduct, Mr. Lee and Mr. Chen must face the consequences."
According to the plea agreements, Lee, who worked as an investment banker in the San Francisco office of Leerink Swann LLC, disclosed inside information to Chen, a friend from college, about two impending mergers involving Leerink clients. Between Aug. 26, 2009, and Sept. 5, 2009, Lee disclosed inside information to Chen about the merger of Leerink's client, Syneron Medical Ltd., and Candela Corporation, a medical device company publicly traded on the NASDAQ stock market. Chen used the inside information to buy shares of Candela. After the merger was announced, Candela's stock price increased more than 40 percent and Chen sold his shares for a gain of approximately $62,589.
Between June 1 and 13, 2010, Lee also provided Chen with inside information about the impending merger of Somanetics Corporation and a subsidiary of Covidien plc. Leerink was the lead financial advisor to Somanetics, which also was publicly traded on the NASDAQ. Chen used the inside information to buy shares and options of Somanetics. Following the merger announcement, the price of Somanetics stock increased more than 30 percent and Chen ultimately realized a profit of approximately $547,510.
Lee and Chen are scheduled for sentencing on July 23, 2013, before Judge Seeborg. The maximum penalty for conspiracy to commit securities fraud is five years in prison, and the maximum penalty for securities fraud is 20 years in prison.
This case is being prosecuted by Assistant U.S. Attorney Robert S. Leach and Trial Attorney Brian R. Young of the Criminal Division's Fraud Section with the assistance of Rayneisha Booth and Mary Mallory. The prosecution is the result of a one-year investigation by the FBI with substantial assistance from the Chicago Regional Office of the U.S. Securities and Exchange Commission.
This prosecution 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.Former CEO Pleads Guilty to Securities FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced that defendant Scott Haire, 48, a resident of Coral Springs, Florida, pled guilty yesterday before U.S. District Judge Kathleen Williams. Haire pled guilty to conspiracy to commit securities fraud in violation of Title 18, United States Code, Section 371, in United States v. Scott Haire and Douglas Martin, Case No. 12-Cr-60133-Williams(s).
At sentencing, Haire faces a maximum of five year’s imprisonment, three years supervised release, and a $250,000 fine.
This case is part of the Southern District of Florida Securities and Investment Fraud Initiative (the Initiative), first announced in December 2010 and designed to combat securities and investment fraud and protect the interests of the investing public. The Initiative was established to address the increase in securities and investment fraud schemes in the Southern District of Florida. In addition to the U.S. Attorney’s Office, FBI, U.S. Securities and Exchange Commission (SEC) and Florida’s Office of Financial Regulation, other participating agencies in the Initiative include the Internal Revenue Service, Criminal Investigation Division (IRS-CID), U.S. Secret Service (USSS), U.S. Postal Inspection Service, Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG), U.S. Commodity Futures Trading Commission (CFTC), and the Federal Trade Commission (FTC) Southeast Region. Among the goals of the Initiative is to alert the public about the prevalence of these types of schemes, educate the public on how to avoid falling prey to these schemes, and to highlight the law enforcement response to the problem.
The Southern District of Florida ranks second in the nation in securities and investment fraud investigations and prosecutions. Using the strike force model successfully developed in the health care and mortgage fraud areas, the Initiative has yielded similar success. Since its inception in December 2010, the Initiative has resulted in charges against 144 defendants in the Southern District of Florida, resulting in more than $1.76 billion in restitution ordered.
Haire – the former CEO of Wound Management Technologies, Inc., and the former CFO and Chairman of VHGI, Inc. –was captured on video and audio recordings engaging in securities fraud during an undercover FBI operation. During the recordings, Haire discussed his football career at the University of Kentucky before turning to fraud.
According to court documents, Haire bribed a pension fund fiduciary to induce the fiduciary to invest in Wound Management, in violation of the pension fund fiduciary’s obligation to act in the best interest of the pension fund’s beneficiaries. In addition, Haire bribed a stock broker to invest money from his client’s discretionary accounts, in violation of the stock broker’s obligation to act in the best interest of his clients. Haire agreed that he conspired with Douglas Martin, a conspirator who previously pled guilty, to inflate the volume and stock of VHGI, a publicly traded company.
To date, 37 individuals have been convicted as part of the FBI’s undercover operation in this and related cases.
Mr. Ferrer commended the investigative efforts of the FBI in this and other cases targeting penny stock fraud in South Florida. Mr. Ferrer would also like to thank the SEC for its assistance in this matter. This case is being prosecuted by Assistant U.S. Attorneys H. Ron Davidson and Jodi L. Anton.
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.
Foreign Bribery Charges Unsealed Against <br /> Current and Former Executives of French Power CompanyRead the Press Release
Charges have been unsealed against one current and one former executive of the U.S. subsidiary of a French power and transportation company for their alleged participation in a scheme to pay bribes to foreign government officials, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the District of Connecticut David Fein and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office announced today.
Frederic Pierucci, 45, a current company executive who previously held the position of vice president of global sales for the Connecticut-based U.S. subsidiary, was charged in an indictment unsealed yesterday in the District of Connecticut with conspiring to violate the Foreign Corrupt Practices Act (FCPA) and to launder money, as well as substantive charges of violating the FCPA and money laundering. Pierucci, a French national, was arrested Sunday night at John F. Kennedy International Airport.
David Rothschild, 67, of Massachusetts, a former vice president of sales for the Connecticut-based U.S. subsidiary, pleaded guilty on Nov. 2, 2012, to a criminal information charging one count of conspiracy to violate the FCPA. The charges against Rothschild and his guilty plea were unsealed today.
“Frederic Pierucci and David Rothschild allegedly used outside consultants to bribe foreign officials in Indonesia in exchange for lucrative power contracts,” said Acting Assistant Attorney General Raman. “Stamping out foreign bribery is a Justice Department priority, and we are determined to continue our vigorous enforcement of the Foreign Corrupt Practices Act.”
“As alleged, this investigation has revealed a corrupt scheme to secure valuable contracts by bribing government officials in Indonesia,” said U.S. Attorney Fein. “Corrupt payments to government officials erode public confidence in the global marketplace, and these charges demonstrate our commitment to hold people responsible for violating the FCPA.”
“Anyone who still believes that foreign bribery is an acceptable business practice should take a hard look at the charges against these executives. There is no place for bribery in any business model or corporate culture,” said Assistant Director in Charge Parlave. “Along with the Department of Justice, international law enforcement partners, and other U.S. federal agencies, the FBI is committed to investigating corrupt backroom deals that threaten our global commerce.”
According to the charges, Pierucci and Rothschild, together with others, paid bribes to officials in Indonesia, including a member of Indonesian Parliament and high-ranking members of Perusahaan Listrik Negara (PLN), the state-owned and state-controlled electricity company in Indonesia, in exchange for those officials’ assistance in securing a contract for the company to provide power-related services for the citizens of Indonesia, known as the Tarahan project. The charges allege that, in order to conceal the bribes, the defendants retained two consultants purportedly to provide legitimate consulting services on behalf of the power company and its subsidiaries in connection with the Tarahan project. In reality, however, the primary purpose for hiring the consultants was allegedly to use the consultants to pay bribes to Indonesian officials.
The first consultant retained by the defendants allegedly received hundreds of thousands of dollars into his Maryland bank account to be used to bribe the member of Parliament, according to the charges. The consultant then allegedly transferred the bribe money to a bank account in Indonesia for the benefit of the official. According to court documents, emails between Pierucci, Rothschild and their co-conspirators discuss in detail the use of the first consultant to funnel bribes to the member of Parliament and the influence that the member of Parliament could exert over the Tarahan project. However, when Pierucci and others determined that the first consultant was not effectively bribing key officials at PLN, they allegedly retained the second consultant to accomplish that purpose. The charges allege that the power company deviated from its usual practice of paying consultants on a pro-rata basis in order to make a much larger up-front payment to the second consultant so that the consultant could “get the right influence.” An employee at the power company’s subsidiary in Indonesia sent an e-mail to Pierucci and others asking them to finalize the consultancy agreement with the front-loaded payments but stated that in the meantime the employee would give his word to a high-level official at PLN, according to the charges.
The conspiracy to commit violations of the FCPA count carries a maximum penalty of five years in prison and a fine of the greater of $250,000 or twice the value gained or lost. The substantive FCPA counts each carry a maximum penalty of five years in prison and a fine of the greater of $100,000 or twice the value gained or lost. The conspiracy to commit money laundering count carries a maximum penalty of 20 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the transaction. The substantive money laundering counts each carry a maximum penalty of 20 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the transaction.An indictment is merely an accusation, and defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
The case is being prosecuted by Trial Attorney Daniel S. Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David E. Novick of the District of Connecticut. The case is being investigated by FBI agents who are part of the Washington Field Office’s dedicated FCPA squad, with assistance from the Meriden, Conn., Resident Agency of the FBI. Significant assistance was provided by the Criminal Division’s Office of International Affairs, and the department has also worked closely with its law enforcement counterparts in Indonesia at the Komisi Pemberantasan Korupsi (Corruption Eradication Commission) and deeply appreciates KPK’s assistance in this matter.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Five New Orleans Gang Members Indicted on Drug and Gun ChargesRead the Press Release
THOMAS HILLIARD, 22; CHRISTIAN JOHNSON, 23; ALEX LEWIS, 20; JAMES BROWN, 22; and WILLIE HILLIARD, 23; all residents of New Orleans, were indicted by a federal Grand Jury on Friday April 12, 2013 on several counts involving the distribution of cocaine base (“crack”) and the illegal possession of firearms, announced United States Attorney Dana J. Boente. The indictment was sealed until today, as federal and local law enforcement officials conducted a round-up of all defendants this morning. All five defendants are expected to make their initial appearance in federal court this afternoon at 2:00pm.
This indictment was the result of an investigation that was conducted by the newly formed NOPD Multi Agency Gang Unit, which is comprised of NOPD detectives and federal agents. During the course of this investigation all five individuals were identified as belonging to a gang known as “MMG” that distributed crack cocaine and illegally possessed firearms to further their drug trafficking activities in the Seventh Ward area of New Orleans.
According to the indictment, beginning at a time unknown and continuing until on or about June 7, 2012, in the Eastern District of Louisiana, THOMAS HILLIARD, JOHNSON, LEWIS, BROWN, and WILLIE HILLIARD did knowingly and intentionally conspire and agree to distribute two hundred-eighty grams or more of cocaine base (“crack”). During that same period, THOMAS and WILLIE HILLIARD, JOHNSON and LEWIS also conspired to possess firearms in furtherance of the drug conspiracy. Also, as part of the indictment, THOMAS HILLIARD, JOHNSON and BROWN were charged with using a communication facility to facilitate a drug crime. JOHNSON was additionally charged with being a felon in possession of a firearm and WILLIE HILLIARD was charged with possession with intent to distribute a quantity of crack cocaine.
If convicted of all counts, each defendant faces a mandatory minimum term of imprisonment of 10 years and a maximum term of life imprisonment.
The Multi Agency Gang Unit was created within the ranks of the New Orleans Police Department with significant support from other local, state, and federal law enforcement agencies. There are also two Assistant District Attorneys and two United States Attorneys assigned to this group to try and coordinate the prosecution of these various gang members in both federal and state courts. Like the current NOPD Homicide Division, the Gang Unit is centrally located and has jurisdiction over Orleans Parish and will be under the direction of the NOPD. It is the central bureau tasked with gathering evidence against violent gangs and all of their members that leads to the prosecution and conviction of entire violent gangs in either state or federal court on criminal conspiracy, street gang, or racketeering charges. The Gang Unit is conducting several simultaneous investigations on identified groups, which could result in state and federal prosecutions of the groups, and not only their individual members, thereby removing the violent offenders who are responsible for the majority of violent crimes committed in the neighborhoods of New Orleans and the metropolitan area.
The following agencies are part of the Multi Agency Gang Unit:
- New Orleans Police Department (NOPD);
- Orleans Parish District Attorney’s Office (DA);
- Orleans Parish Sheriff’s Office (OPSO);
- Louisiana State Police (LSP);
- Parole Board of the Louisiana Department of Corrections;
- United States Attorney’s Office (USAO);
- Federal Bureau of Investigation (FBI);
- Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF);
- Drug Enforcement Administration (DEA); and
- United States Marshal’s Service (USMS).
U. S. Attorney Boente stated, “Thanks to the men and women who are assigned to this Unit for their hard work and dedication. Though this is the first indictment to be returned based on this Unit’s work, it certainly will not be the last. The United States Attorney’s Office is proud to be part of this joint initiative to help fight the violent crime and drug trafficking activities that continually plague several neighborhoods in this city.”
ATF Special Agent in Charge Phillip Durham said, “The indictment in this investigation is the results of our commitment as a law enforcement community to work hand in hand to identify offenders who are considered the “Worst of the Worst” and reside and operate in designated neighborhoods. We have no doubt that this strategy will continue to produce positive results in our efforts to crack down on violent gun crimes and repeat offenders in neighborhoods throughout the New Orleans metropolitan area.”
District Attorney Leon Cannizzaro observed, "This represents another example of unprecedented cooperation and collaboration amongst local and Federal law enforcement agencies to aggressively identify and round up affiliated criminal confederates who are perpetrating crimes of violence on the streets of this community."
Superintendent Ronal Serpas said, "Today's indictments are proof that this initiative headed up by NOPD is aggressive, focused and effective. We are incredibly grateful for the assistance and dedication to this effort provided by our state and federal partners. Together, we are making New Orleans safer."
U. S. Attorney Boente reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The investigation is being led by Special Agents of the Bureau of Alcohol, Tobacco and Firearms and the New Orleans Police Department. The case is being prosecuted by Assistant United States Attorney Andre’ Jones.
(Download Indictment )
Federal Jury Finds Red Lake Man Guilty of Assaulting A WomanRead the Press Release
MINNEAPOLIS—Earlier today in federal court in Duluth, a jury found a 44-year-old Red Lake man guilty of causing serious bodily injury to a woman after assaulting her while on the Red Lake Indian Reservation. Following a two-day trial, the jury convicted Roderick Arlyn Sayers on one count of assault resulting in serious bodily injury. Sayers was indicted on November 5, 2012.
According to both the evidence presented at trial and the indictment, on November 25, 2011, Sayers assaulted the victim, which resulted in serious bodily injury. The victim, who was Sayers’ girlfriend, had a significant mouth injury and a loose tooth.
For his crime, Sayers faces a potential maximum penalty of ten years in federal prison. United States District Court Judge Richard H. Kyle will determine his sentence at a future hearing, not yet scheduled.
This case is the result of an investigation by the Red Lake Tribal Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorneys Deidre Y. Aanstad and Thomas Calhoun-Lopez.Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.
The U.S. Justice Department is taking steps to increase engagement, coordination and action relative to public safety in tribal communities, including the creation of the Violence Against Women Federal and Tribal Prosecution Task Force. This task force will explore current issues raised by professionals in the field and recommend “best practices” in prosecution strategies involving domestic violence, sexual assault and stalking.
Violence against American Indian women occurs at epidemic rates. In 2005, Congress found that one in three American Indian women is raped during her lifetime, and American Indian women are nearly three times more likely to be battered in during their lives than Caucasian women.Federal Grand Jury Returns Seven IndictmentsRead the Press Release
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ELKINS, WEST VIRGINIA — Nine individuals were named in seven Indictments returned by a federal grand jury sitting in Elkins, West Virginia, on April 16, 2013.
United States Attorney William J. Ihlenfeld, II, announced the following indictments: CHARLES ADKINS, age 53, of Erie, Pennsylvania, who was previously charged in a one-count Indictment on March 5, 2013, was named in a three-count Superseding Indictment charging him with “Failure to Update Sex Offender Registration”, “Attempting to Obstruction Justice,” and “False Declarations before Court.” Count One of the Superseding Indictment alleges that from November 3, 2012, to January 15, 2013, ADKINS knowingly failed to update a registration pursuant to the Sex Offender Notification Act. Counts Two and Four alleges that ADKINS attempted to obstruct justice by attempting to influence a potential witness in an official proceeding. Count Three alleges that ADKINS made false declarations to the Court during a February 28, 2013, hearing. If convicted, ADKINS faces up to 10 years imprisonment and a $250,000 fine as to Count One; 20 years imprisonment and a $250,000 fine as to Counts Two and Four; and, 5 years imprisonment and a $250,000 fine as to Count Three. This case was investigated by the United States Marshals Service.ANDRE ABRAM, age 32, of Pittsburgh, Pennsylvania, was named in a one-count Indictment charging him with “Possession with Intent to Distribute Heroin within 1,000 Feet of the Clarksburg Housing Authority” on March 28,2013. The Indictment also seeks the forfeiture of $3,376 in United States currency seized on March 28, 2013. If convicted, ABRAM faces 1 to 40 years imprisonment and a $2,000,000 fine. This case was investigated by the Greater Harrison County Drug Task Force, consisting of officers from the Bridgeport Police Department; Clarksburg Police Department; Drug Enforcement Administration; West Virginia State Police-Bureau of Criminal Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Postal Inspection Service; and, the United States Marshals Service.
These two cases will be prosecuted by Criminal Chief Shawn A. Morgan.
GARY RUDOLPH LOY, age 30, of Belington, West Virginia, was named in a three- count Indictment. Counts One and Three charge LOY with “Possession of Material Used in the Manufacture of Methamphetamine” on July 8 and August 28, 2012. Count Two charges LOY with “Manufacturing Methamphetamine” on August 28, 2012. If convicted, LOY faces up to 10 years imprisonment and a $250,000 fine as to Counts One and Three and 20 years imprisonment and a $1,000,000 fine as to Count Two. This case was investigated by the West Virginia State Police.
ALAN LEE STANLEY, age 33, of Buckhannon, West Virginia, was named in a seven- count Indictment. Count One charges STANLEY with “Possession of Materials Used in the Manufacture of Methamphetamine” on October 26, 2012. Counts Two through Six charge STANLEYwith “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine” on September 11, September 18, October 1, October 12 and October 25, 2012. Count Seven charges STANLEYwith“Attempted Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine” on October 1, 2012. The indictment also seeks the forfeiture of items seized from STANLEY’s residence on October 26, 2012. If convicted, STANLEY faces up to 10 years imprisonment and a $250,000 fine as to Count One and 20 years imprisonment and a $250,000 as to Counts Two through Seven. This case was investigated by the Buckhannon Police Department.
TONYA RENEE HAYMOND, age 28, of Romney, West Virginia, was named in a three-count Indictment. Counts One and Two charge HAYMOND with the “Distribution of Heroin” on June 5 and 6, 2012. Count Three charges HAYMOND with “Possession with Intent to Distribute Heroin” on June 6, 2012. If convicted HAYMOND faces up to 20 years imprisonment and a $1,000,000 fine as to each of the three counts. This case was investigated by the Hardy County Sheriff’s Department and the Moorefield Police Department.
DONALD MARK TILLOTSON, age 36, of Burling, West Virginia, was named in a nine-count Indictment. Count One charges TILLOTSON with “Possession of Materials Used in the Manufacture of Methamphetamine” on November 28, 2012. Counts Two through Eight charge TILLOTSON with “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine” on November 21, November 10, October 16, October 2, September 17, September 2, and August 24, 2012. Count Nine charges TILLOTSON with “Attempted Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine” on September 17, 2012. If convicted,TILLOTSON faces up to 10 years imprisonment and a
$250,000 fine as to Count One and 20 years imprisonment and a $250,000 fine as to Counts
Two thru Nine.SCOTT ALLEN GREENWALT, age 40, MICHELLE LEE STOCKING, age 23, and KIMBERLY EVANS, age 39, all of Moorefield, West Virginia, were named in a 25-count Indictment. Count One charges GREENWALT, STOCKING and EVANS with “Conspiracy to Manufacture, Possess and Distribute Methamphetamine” from March 5 to September 4, 2012. Count Two charges GREENWALT, STOCKING and EVANS with “Possession of Materials Used in the Manufacture of Methamphetamine” on June 13, 2012. Count Three charges GREENWALT and STOCKING with “Attempting to Manufacture Methamphetamine” on September 4, 2012. Count Four charges GREENWALT and STOCKING with “Possession of Materials Used in the Manufacture of Methamphetamine” on September 4, 2012. Counts Five through Ten charge GREENWALT with “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine” on May 3, May 22, June 2, July 10, August 1 and August 23, 2012. Count Eleven charges GREENWALT with “Attempting to Possess Pseudoephedrine to be Used in the Manufacture of Methamphetamine” on July 25, 2012. Counts Twelve through Sixteen charge STOCKING with “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine” on June 9, June 13, and July 15, 2012, and March 23 and April 2, 2013. Counts Seventeen through Twenty-Five charge EVANS with “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine” on March 5, March 16, March 31, April 17, May 4, May 11, May 24, June
6 and June 11, 2012. If convicted, GREENWALT, STOCKING and EVANS face up to 20 years imprisonment and a $1,000,000 fine as to Counts One and Three; 10 years imprisonment and a $250,000 fine as to Counts Two and Four; and 20 years imprisonment and a $250,000 fine as to Counts Five through Twenty-Five.These two cases were investigated by the Potomac Highlands Drug and Violent Crimes Task Force consisting of officers from the Federal Bureau of Investigation, and the West Virginia State Police - Bureau of Criminal Investigations.
These five cases will be prosecuted by Assistant United States Attorney Stephen D. Warner.
All of the charges contained in the above-referenced indictments are merely accusations and not evidence of guilt, and each defendant is presumed innocent until and unless proven guilty.
Falfurrias Marijuana Distributor Lands in Federal PrisonRead the Press Release
CORPUS CHRISTI, Texas – Jose Maria Carbajal Jr., of Corpus Christi, Texas, has been sentenced to nine years in federal prison for his involvement in a marijuana conspiracy, U.S. Attorney Kenneth Magidson announced today.
On May 16, 2011, Carbajal pleaded guilty to conspiracy to possess with intent to distribute more than 1,000 kilograms of marijuana and to making a false statement on a loan application to a federally insured bank. Today, Senior United States District Judge John Rainey sentenced him to 108 months on each count of conviction to be served concurrently.
Carbajal, 42, led an organized effort to transport marijuana from September 2008 to January 2011 through ranches around the Falfurrias Border Patrol Checkpoint using four-wheel-drive vehicles known as gators to avoid detection. During Carbajal’s plea, and according to court documents, Carbajal’s organization used four-wheel-drive vehicles which would be loaded with marijuana at a point south of the Falfurrias Border Patrol Checkpoint. Then, the gators would be piloted through ranches to a point north of the checkpoint so the marijuana could be transported via ordinary means further into the United States for distribution. During the investigation, one of the marijuana-laden gator vehicles was apprehended and another was found abandoned on a ranch.
In December 2010, according to court documents, Carbajal discussed a Dec. 18, 2010, marijuana seizure and his assistance to the Zeta drug cartel with respect to uncovering the identity of those who were cooperating with the government. As part of this assistance, Carbajal claimed to have shown two Zeta operatives the home addresses of two Brooks County law enforcement officials. According to the recorded conversation, the Zeta operatives planned to kidnap the law enforcement officials to coerce them into revealing the names of people cooperating with the government in their drug investigations.
In December 2011, five Brooks County men who assisted Carbajal also pleaded guilty to conspiracy to possess with intent to distribute more than 1,000 kilograms of marijuana in a separate case before United States District Judge Nelva Gonzalez Ramos. They are set for sentencing later this year.
The case was investigated by the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation, Homeland Security Investigations and the Brooks County Sheriff’s Department. The case is being prosecuted by Assistant U.S. Attorneys Jon Muschenheim and Julie Hampton as part of the Organized Crime and Drug Enforcement Task Force.
Enfield Man Who Mailed Threatening Letters Is SentencedRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that DANIEL SARNO, 54, of Enfield, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to five years of probation for mailing numerous threatening letters.
According to court documents and statements made in court, from November 2011 to May 2012, SARNO mailed approximately 300 letters to the executive director of a public advocacy group located in Hartford. The letters contained vexatious language and, in a number of instances, explicit threats to kill or injure the victim.
On August 21, 2012, SARNO pleaded guilty to two counts of mailing threatening communications.
As special conditions of his probation, SARNO was ordered to receive mental health treatment, and to have no contact with his victims.
This matter was investigated by the United States Postal Inspection Service and was prosecuted by Assistant United States Attorney John H. Durham.
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U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Eight Current or Former Macon State Prison OfficersCharged in Conspiracy to Assault InmatesRead the Press Release
Deputy Warden James Hinton and seven former members of the Correctional Emergency Response Team (CERT) at Macon State Prison in Oglethorpe, Ga., were charged with federal civil rights, conspiracy or obstruction offenses arising out of incidents in which inmates were allegedly assaulted by officers in order to punish the inmates for prior misconduct. The indictment alleges that former CERT members Christopher Hall, Ronald Lach Jr., Delton Rushin, Kerry Bolden, Derrick Wimbush, Kadarius Thomas and Tyler Griffin, conspired to assault inmates, and that the seven former CERT members conspired with Deputy Warden Hinton and others to cover up their misconduct by writing false reports and providing misleading information to investigators.
The defendants face statutory maximum sentences of 10 years for the civil rights conspiracy charge; 10 years for the civil rights violation; and 20 years for each count of obstruction.
Three former CERT members: Emmett McKenzie, Darren Douglass-Griffin and Willie Redden, previously entered guilty pleas in related cases before U.S. District Judge Marc T. Treadwell.
The Georgia Bureau of Investigation initially conducted an investigation at Macon State Prison. The investigation by the Macon Resident Agency of the FBI is ongoing. The case is being prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Tona Boyd of the Civil Rights Division of the Department of Justice, with the assistance of the U.S. Attorney’s Office for the Middle District of Georgia.
An indictment is merely an allegation, and the defendants are presumed innocent until proven guilty.
Eight Current or Former Macon State Prison Officers Charged in Conspiracy to Assault InmatesRead the Press Release
WASHINGTON – Deputy Warden James Hinton and seven former members of the Correctional Emergency Response Team (CERT) at Macon State Prison in Oglethorpe, Ga., were charged with federal civil rights, conspiracy or obstruction offenses arising out of incidents in which inmates were allegedly assaulted by officers in order to punish the inmates for prior misconduct. The indictment alleges that former CERT members Christopher Hall, Ronald Lach Jr., Delton Rushin, Kerry Bolden, Derrick Wimbush, Kadarius Thomas and Tyler Griffin, conspired to assault inmates, and that the seven former CERT members conspired with Deputy Warden Hinton and others to cover up their misconduct by writing false reports and providing misleading information to investigators.The defendants face statutory maximum sentences of 10 years for the civil rights conspiracy charge; 10 years for the civil rights violation; and 20 years for each count of obstruction.
Three former CERT members: Emmett McKenzie, Darren Douglass-Griffin and Willie Redden, previously entered guilty pleas in related cases before U.S. District Judge Marc T. Treadwell.
The Georgia Bureau of Investigation initially conducted an investigation at Macon State Prison. The investigation by the Macon Resident Agency of the FBI is ongoing. The case is being prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Tona Boyd of the Civil Rights Division of the Department of Justice, with the assistance of the U.S. Attorney’s Office for the Middle District of Georgia.
An indictment is merely an allegation, and the defendants are presumed innocent until proven guilty.
DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.Eagle Butte Man Sentenced for Assault of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota man convicted of Assault of a Minor was sentenced on April 12, 2013 by U.S. Magistrate Judge Mark A. Moreno.
Raymond Uses The Knife III, a/k/a Yamni Uses The Knife, age 22, was sentenced to 10 months of custody, 6 months of supervised release, and a $25 Special Assessment to the Victim Assistance Fund.
Uses The Knife was indicted for Sexual Contact with a Minor on June 12, 2012. He pled guilty to a Superseding Information on January 23, 2013 that charged him with Assault of a Minor.
The conviction was the result of an incident that occurred at Eagle Butte in August 2012, when Uses The Knife assaulted a victim under the age of 16.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Uses The Knife was remanded to the custody of the U.S. Marshal to begin serving his sentence.
Deported Alien Charged with Re-entering United States Without DHS PermissionRead the Press Release
JOHNSTOWN, Pa. - A citizen of Mexico has been indicted by a federal grand jury in Johnstown on a charge of re-entry of an illegal alien, United States Attorney David J. Hickton announced today.
The one-count indictment named Adrian Flores-Flores, 22, as the sole defendant.
According to the indictment, on March 27, 2013, Flores-Flores, an alien who had been deported from the United States on June 19, 2009, was found in Bedford, Pennsylvania. He had unlawfully re-entered this country without receiving permission from the Secretary of the Department of Homeland Security to do so.
The law provides for a maximum total sentence of two 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.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Department of Homeland Security/Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Daphne Man Sentenced to 7 Years for Federal Firearm OffenseRead the Press Release
Trenton Edward Watkins, age 21, of Daphne, Alabama, was sentenced today by Judge William H. Steele to serve 84 months in federal prison for being a felon in possession of a firearm. On November 2, 2012, Watkins – a thrice convicted felon – illegally possessed a loaded Springfield Armory XDM 9mm semi-automatic pistol which had been stolen, in connection with a domestic situation and vehicle chase on Park Avenue and Pollard Road in Daphne, Alabama.
As the court pleadings and testimony at the sentencing hearing established, Watkins drove erratically on Park Avenue and fired at least one shot during the chase as oncoming drivers swerved or ran off the road to avoid being hit by Watkins’ vehicle, and as school children waited at bus stops. Fortunately, no one was injured.
This case was investigated by the Daphne Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosive.
Court Approves Plan to Provide Comprehensive Services to ELL Students in Denver Public SchoolsRead the Press Release
Today, a federal court in Denver approved a comprehensive consent decree between the Department of Justice, the Congress of Hispanic Educators (CHE), and the Denver Public Schools (DPS) that requires DPS to provide language services to the more than 28,000 English Language Learner (ELL) students enrolled in the district’s 170 schools. The consent decree, which replaces a 1999 court order, is the product of compliance monitoring by the department and the CHE, and DPS’s recognition that the 1999 order no longer reflected the district’s own best practices for serving ELL students.
The consent decree requires the district to implement comprehensive measures to ensure that ELLs have equal opportunities to succeed academically in district educational programs, starting with the proper identification of ELL students when they enter DPS. Among other things, the consent decree requires DPS to: provide language acquisition services to ELL students in district schools, including charter schools, until they are proficient in English and to monitor ELL students after they exit services to ensure they are participating meaningfully and equally in mainstream classes; to make translation and interpretation services available for thousands of Limited English Proficient parents who speak more than 130 different languages – thus ensuring that all parents have access to essential information about their children’s education; to provide Pre-K language services at each school where DPS offers early childhood education; and to make appropriate language services available for ELL students who face unique challenges, including refugee students and students with disabilities.
“Today, the Denver Public Schools took a big step forward toward promoting the success of every student from the moment the child enters the district. Faithful implementation of this decree will ensure that ELL students, like all district students, have access to qualified teachers, grade-appropriate curriculum, and dedicated resources to meet their particular learning needs,” said Jocelyn Samuels, Principal Deputy Assistant Attorney General for the Civil Rights Division. “We commend DPS for joining with the Congress of Hispanic Educators and the United States to protect the rights of thousands of ELL students in Denver.”
The enforcement of the Equal Educational Opportunities Act and Title VI of the Civil Rights Act of 1964 are top priorities of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt .
Related Materials:
DPS Consent Decree
Corpus Christi Man Gets Max Sentence for Producing Child PornRead the Press Release
CORPUS CHRISTI, Texas – Timothy Wayne Bailey, 38, of Corpus Christi, has been handed a 30-year prison term following his conviction of sexual exploitation of a child, commonly known as production of child pornography, United States Attorney Kenneth Magidson announced today.
Bailey pleaded guilty to the charge on Jan. 22, 2013, and was sentenced to the maximum prison term allowed by law late yesterday by Senior U.S. District Judge John D. Rainey.
Bailey came to the attention of law enforcement through an undercover investigation, at which time he was identified as person who had been distributing images of child pornography online. A search warrant executed at Bailey’s home resulted in the discovery of several electronic storage devices which were found to contain images of child pornography. A closer inspection of those images resulted in the discovery of Bailey’s prior sexual abuse of a family member. The victim was interviewed and described more than four years of continuous sexual assault suffered at the hands of Bailey.
Bailey was arrested on Dec. 5, 2012. He has been in custody since that time where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations and the Corpus Christi Police Department’s Internet Crimes Against Children Task Force (ICAC) investigated.
This case, prosecuted by Assistant United States Attorney Lance Duke, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Convicted Sex Offender Living in Jefferson County Sentenced to 33 Months in Prison for Failing to Register with the Kentucky Sex Offender RegistryRead the Press Release
LOUISVILLE, Ky. – A convicted sex offender living in Jefferson County, Kentucky, was sentenced in United States District Court today, by Senior Judge Thomas B. Russell, to 33 months in prison followed by five years of supervised release for failing to register with the Kentucky Sex Offender Registry after moving to Kentucky, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Ronald Edward Dunn, age 42, was charged in a federal grand jury indictment on February 22, 2012, and pleaded guilty to the charge on December 14, 2012.
According to the plea agreement, Dunn was previously convicted in Indiana for child molesting in Case Number 39C01-9601-CR-6. The Indiana court sentenced him to 10 years in prison with four years suspended. Under the terms of the judgment, Dunn was required to register as a sex offender. On August 26, 2009, he was convicted of failure to register as a sex offender in Indiana. On January 26, 2010, he was convicted of failure to register as a sex offender in California. Dunn applied for and obtained a Kentucky Driver's License on January 3, 2012. He listed a residence in Louisville, Kentucky. However, he did not register with the Kentucky Sex Offender Registry at that time.
The United States Marshals Service Task Force began working two outstanding warrants on Dunn (one out of Indiana and one from California) in early 2012. Law enforcement officials arrested Dunn on February 10, 2012, at his place of employment at West Broadway in Louisville. Consequently, between January 3, 2012, and February 10, 2012, in the Western District of Kentucky, Jefferson County, Kentucky, Dunn, an individual required to register under the Sex Offender Registration and Notification Act, knowingly failed to register as required by the Sex Offender Registration and Notification Act.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The United States Marshals Service conducted the investigation as part of their mission under the Adam Walsh Act.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Charleroi Man Admits Straw Purchasing Firearm for Drug-addicted FelonRead the Press Release
PITTSBURGH - A resident of Charleroi, Pa., pleaded guilty on Monday to violating federal firearms laws, United States Attorney David J. Hickton announced today.
Jeffrey Cochenour, 41, was convicted of providing false information to a federal firearms licensee by indicating that he was the actual buyer of a particular firearm when he was actually acting on behalf of someone else. Cochenour purchased a RomArm/Cugir 7.62x39 caliber semi-automatic rifle with a high-capacity magazine capable of accepting over 15 rounds of ammunition. Cochenour bought the firearm for, and provided the firearm to, an acquaintance who was a convicted felon and who was addicted to a controlled substance and could not lawfully purchase or possess firearms.
Sentencing is scheduled to occur on Aug. 9, 2013, at 10:30 a.m., in the courtroom of United States District Judge Terrence F. McVerry.
The law provides for a maximum total sentence of up to five years in prison, a fine of up to $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, if any, of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Pennsylvania State Police investigated this case. This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Bronx Man Sentenced in Manhattan Federal Court to 21 Years in Prison for the Sexual Exploitation of A Child and the Distribution of Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that LUCIANO MENDEZ-ROJAS was sentenced today in Manhattan federal court to 21 years in prison for sexually exploiting a child and distributing images and videos of child pornography over the Internet. MENDEZ-ROJAS pled guilty in June 2012. He was sentenced today by U.S. District Judge Paul A. Engelmayer.
Manhattan U.S. Attorney Preet Bharara stated: “By his conduct, Luciano Mendez-Rojas stole the innocence of one child and exploited countless others. We have zero tolerance for child predators like Mendez-Rojas and his ilk and will prosecute and punish them with the full force of the law.”
According to documents filed in this case and statements made in court:
In July 2011, MENDEZ-ROJAS and his co-defendant, Inocencia Ortega, engaged in
sexually explicit conduct in their home in the Bronx, New York, while their minor child filmed videos of the conduct at the direction of MENDEZ-ROJAS.
On February 9, 2011, MENDEZ-ROJAS distributed child pornography over the Internet
using file-sharing software.
In addition to the prison term, Judge Engelmayer sentenced MENDEZ-ROJAS, 39, a citizen of Mexico, to eight years of supervised release. He must also register as a sex offender. Ortega is scheduled to be sentenced by Judge Engelmayer on April 26, 2013 at 2:15 p.m.
Mr. Bharara praised the investigative work of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the New York City Police Department.
The case is being handled by the Office’s General Crimes Unit. Assistant United
States Attorneys Kristy J. Greenberg and Daniel C. Richenthal are in charge of the prosecution.
ICE HSI encourages the public to report suspected child predators and any suspicious
activity through its toll-free hotline at 1-866-347-2423. This hotline is staffed around the clock
by investigators.
Suspected child sexual exploitation or missing children may be reported to the National Center for Missing and Exploited Children, an Operation Predator partner, at 1-800-843-5678 or http://www.cybertipline.com.
Boise Jury Convicts Eagle Man of 17 Counts of Wire FraudRead the Press Release
BOISE – A federal jury in Boise late yesterday convicted Matthew D. Hutcheson, 41, of Eagle, Idaho, of seventeen counts of wire fraud, U.S. Attorney Wendy J. Olson announced. Hutcheson is a former trustee and fiduciary for a number of multiple employer pension plans, including the G Fiduciary Retirement Income Security Plan (the “G Fid Plan”), National Retirement Security Plan 401(k) (the “NRSP”), and the Retirement Security Plan & Trust (the “RSPT”). During the eight day trial, the government presented evidence that beginning in 2010, Hutcheson perpetrated schemes to defraud the G Fid and RSPT plans, and misappropriated over $5 million of plan assets.
The jury heard evidence that from January 2010 through December 2010, Hutcheson misappropriated just over $2 million of G Fid Plan assets for his personal use. On twelve occasions, Hutcheson directed the G Fid Plan record keeper to wire transfer plan assets from the G Fid Plan account at Charles Schwab to bank accounts he controlled and to other bank accounts for his personal benefit. Hutcheson used these assets to extensively renovate his personal residence, including adding a pool, to repay personal loans, to purchase luxury automobiles, motorcycles, all-terrain vehicles, and a tractor, and for other personal expenses. When G Fid Plan clients, plan record keepers, and others requested information about the location and status of the plan assets, Hutcheson misrepresented that they were safely invested.
The jury also heard evidence that in December 2010, Hutcheson misappropriated approximately $3,276,000 of RSPT Plan assets to pursue the purchase of the Tamarack Resort in Donnelly, Idaho, on behalf of a limited liability corporation he controlled, called Green Valley Holdings, LLC. In December 2010, Hutcheson directed the RSPT Plan record keeper to wire transfer approximately $3 million from the RSPT Plan to an escrow account for the benefit of Green Valley Holdings, LLC. Hutcheson directed the RSPT Plan record keeper to describe the transaction in plan records as an investment in a fixed income bank note. In reality, Hutcheson used the $3 million to purchase a bank note secured by a majority interest in the Osprey Meadows Golf Course and Lodge at the Tamarack Resort in the name of Green Valley Holdings, not the RSPT Plan. Hutcheson later obtained a $425,000 cash loan from a private lender in Virginia using the same bank note as collateral, and placing the lender above other creditors in case of default. When the RSPT Plan auditor questioned Hutcheson about the investment, Hutcheson told the auditor there was no plan investment in a fixed income bank note, and that he had “loaned” the money from the RSPT Plan to Green Valley Holdings. Hutcheson produced purported loan documents to the auditor, but they were fraudulent and forged. In addition, in December of 2010, Hutcheson directed the RSPT Plan record keeper to wire transfer $275,000 from the RSPT Plan to a bank account he controlled. Hutcheson transferred $250,000 of this money to an escrow account at US Bank to demonstrate to the Tamarack Corporation's creditors that Green Valley Holding had the financial means to purchase the resort. Later, he spent the money for personal purposes.
Each count of wire fraud is punishable by up to 20 years in prison, a maximum fine of $250,000 or twice the gain or loss from the offense, and up to three years of supervised release. The government is seeking forfeiture of approximately $5,307,688, or substitute assets, including property, valued at this amount.
Hutcheson is scheduled to be sentenced on July 23, 2013, before U.S. District Judge William Fremming Nielsen at the federal courthouse in Boise.
“This jury verdict sends the strong message that those who defraud the very employee benefit pension plans they are supposed to protect will be held accountable,” said Olson. “Matthew Hutcheson placed his own personal interests and greed above the clients’ whose retirement interests he pledged to safeguard. This office will continue to take pension fraud very seriously. I commend the federal law enforcement officers who conducted the deliberate and detailed investigation in this case, and I commend Assistant United States Attorney Ray Patricco for his outstanding job of presenting the complex evidence to the jury."
The case was investigated by the United States Department of Labor, Employee Benefits Security Administration, and the Federal Bureau of Investigation.
Baltimore Tax Preparer Sentenced to 3 Years in Prison in Tax and Identity Theft SchemeRead the Press Release
Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Alexis Brett Travers, age 38, of Baltimore, Maryland, today to three years in prison followed by three years of supervised release for two counts of aiding in the preparation of false tax returns and aggravated identity theft. Judge Blake also entered an order that Travers pay $98,189 in restitution to the IRS for three years of personal taxes that she failed to pay, plus interest.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“Return preparer fraud and identity theft are devastating for the victims, threaten the veracity of our tax system and cause tremendous financial hardship,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “Investigating refund fraud and identity theft is a top priority for IRS Criminal Investigation and we, along with our partners at the Department of Justice, will continue to pursue the criminals who commit these crimes and steal from innocent taxpayers and the U.S. Treasury."
According to her guilty plea, Travers owned ATB Tax Prep and Consulting Service which she operated out of her homes in Gwynn Oak, Maryland, and most recently, Baltimore. From 2006 to 2009, Travers concealed her identity as the paid tax preparer by not listing her or her company’s name on the federal income tax forms she filed, and by filing the forms electronically without obtaining a provider’s electronic filing identification number.
Travers filed at least 26 tax returns containing false business losses for taxpayers who did not operate a business, resulting in a tax loss of $137,406. Travers obtained a fee for her services from the deposit by the IRS of the tax refund into a bank account she controlled. Her fee was sometimes as high as $1,000 per taxpayer.
Travers failed to report the fees on her 2006, 2007 and 2008 tax returns, resulting in an additional tax loss of at least $87,000 for those three years.
Additionally, the tax return filed by Travers for a client, G.A., for tax year 2008 contained a false claim for the earned income credit. Travers stole personal identifying information, including year of birth and social security number, from another client to use in G.A.’s tax return in order to obtain a greater tax refund for G.A. The tax refund was then deposited into Travers’ bank account.
The total tax loss in this case is $224,000.
United States Attorney Rod J. Rosenstein commended the IRS Criminal Investigation for its work in the investigation and thanked Assistant United States Attorney David I. Sharfstein, who prosecuted the case.
Arizona Man Pleads Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Kevin James Fitzgerald, 19, of Tucson, Ariz., pleaded guilty this morning in Las Cruces federal court to methamphetamine trafficking charges under a plea agreement with the U.S. Attorney’s Office.
Fitzgerald and his co-defendant Lauren Christine Nunez, 20, also of Tucson, were arrested on the night of Jan. 19, 2013, and charged with methamphetamine trafficking offenses in a criminal complaint. According to the criminal complaint, Fitzgerald and Nunez were arrested after Border Patrol agents found 9.2 pounds of methamphetamine in a vehicle Nunez was driving and in which Fitzgerald was a passenger at the U.S. Border Patrol checkpoint on New Mexico Highway 26 near Truth or Consequences, N.M. The methamphetamine, which was contained in tin foil and cellophane-wrapped bundles, was discovered after a narcotics canine alerted to the vehicle, indicating that it contained controlled substances.
This morning, Fitzgerald pled guilty to a two-count felony information charging him with conspiracy and possession of methamphetamine with intent to distribute. In his plea agreement, Fitzgerald admitted that, in Jan. 2013, Nunez and he agreed to transport methamphetamine from Arizona to Nebraska, where they intended to deliver the drugs to another person. Fitzgerald also admitted that the methamphetamine had been delivered to Nunez and him more than a week before they were arrested on Jan. 19, 2013, and acknowledged responsibility for the methamphetamine found in their vehicle that night.
Fitzgerald was remanded into the custody of the U.S. Marshals Service after he entered his guilty plea, and he will remain detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Fitzgerald faces a mandatory minimum of ten years and a maximum of life in prison on each of the two offenses to which he pleaded guilty.
Nunez has entered a not guilty plea to the criminal complaint. Charges in criminal complaints are merely accusations and all criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Las Cruces office of the DEA and the Truth or Consequences Border Patrol Station of U.S. Customs and Border Protection, and is being prosecuted by Assistant U.S. Attorney Brock E Taylor of the U.S. Attorney’s Las Cruces Branch Office.