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Thursday 28 February 2013
Heroin Charges Filed on Detroit ManRead the Press Release
A federal grand jury sitting returned a one-count indictment charging Reginald G. Davis, age 61, of Detroit, Michigan, with possession with the intent to distribute heroin, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that on or about February 6, 2013, Reginald G. Davis possessed with the intent to distribute more than 100 grams of heroin.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration - Youngstown Resident Office. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Henderson Man Charged with Possession of Ammunition While Subject to A Domestic Violence Protective OrderRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that a criminal complaint, filed February 25, 2013, charges WILLIAM IRA HARRIS, JR. with possession of ammunition while subject to a domestic violence protective order, in violation of Title 18, United States Code, Sections 922(g)(8) and 924.A detention hearing was held today and U.S. Magistrate Judge Gates ordered HARRIS detained pending his trial.
According to filed court documents, on February 13, 2013 Raleigh Police Officers responded to a call regarding a violation of a Domestic Violence Protection Order. Officers located HARRIS in an office building where his estranged wife worked and asked him to go outside. After verifying that HARRIS had been served with a Domestic Violence Protective Order, the officers then arrested him for the violation. Officers received verbal consent to search HARRIS’ vehicle and located 59 rounds of ammunition, including one round of .243 caliber Winchester bullet with his wife’s name written on it.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Raleigh Police Department. Assistant United States Attorney Kimberly A. Moore is prosecuting this case for the United States.
Gansevoort Man Sentenced for Receiving Child PornographyRead the Press Release
Defendant Who Received Multiple Still Images and Videos of Child Pornography Sentenced
to 96 Months in PrisonAlbany, New York — WAYNE L. CONRAD, JR., age 47, of Ganesvoort, New York, was sentenced today by United States District Court Judge Mae A. D’Agostino, in Albany to ninety-six (96) months of imprisonment for receiving child pornography images, announced United States Attorney Richard S. Hartunian, Andrew W. Vale, Special Agent-in-Charge, Federal Bureau of Investigation, Albany Division, and Joseph D’Amico, Superintendent of New York State Police. CONRAD, who had entered a guilty plea on October 15, 2012, was also ordered to have no unsupervised contact with minors and to register with the New York State Sex Offender Registry Program.
Between May 2007 and February 1, 2012, CONRAD used the Internet to access various child pornography websites and various file sharing networks. While accessing some of the child pornography websites or file sharing networks, CONRAD downloaded multiple still images and videos of child pornography onto his home computer and external hard drives.
This case was investigated by the Federal Bureau of Investigation and the New York State Police.
LOCAL CONTACT:
Rick Belliss
Assistant U.S. Attorney
Tel: (518) 431-0247Ft. Lauderdale Man Convicted of Money Laundering and Obstruction of Justice in Connection with MBC FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced that, after a four-week trial before U.S. District Judge Kathleen M. Williams, a federal jury sitting in Miami convicted defendant Steven Steiner, a/k/a “Steven Steinger,” 60, on 19 of 54 counts, including conspiracy to commit money laundering offenses, money laundering, conspiracy to commit offenses against the United States, and various obstruction of justice offenses, relating to Steiner’s participation in a scheme to launder and conceal more than $15 million in proceeds derived from the Mutual Benefits Corporation (“MBC”) fraud, and Steiner’s obstruction of United States Securities and Exchange Commission (“SEC”), the court-appointed receiver for MBC, and the United States District Court, in their efforts to secure and recover assets traceable to the fraud. Co-defendant Henry Fecker, III was acquitted on all charges. Steiner is scheduled to be sentenced by Judge Williams on May 8, 2013.
According to the evidence presented at trial, from approximately 1994 to May 2004, MBC purchased life insurance policies from persons suffering from AIDS, chronically ill, and elderly persons. Having purchased the life insurance policies, MBC sold fractionalized interests in the death benefits, known as “viatical settlements,” to approximately 30,000 investors. In promotional materials, MBC told investors that its viatical settlements offered a fixed rate of return with low risk, and that investors’ principal and returns were paid by the insurance companies. Evidence at trial established that MBC misrepresented various material facts relating to its viatical settlements, including, for example, the estimated life expectancies of the insured persons, MBC’s title to certain life insurance policies, the risks associated with certain policies, the payment of premiums, and the source of funds used to pay investors. Witnesses testified that new investor money was used to pay premiums on life insurance policies purchased by earlier investors and to pay investors who requested their money back. The evidence established that as the fraud continued, investor money was required to prevent the MBC Ponzi-scheme from collapsing. Ultimately, investors lost more than $750 million.
Steiner was a founder, principal, and Vice President of MBC, and he received more than $15 million in proceeds from the MBC fraud through two shell corporations that he controlled, Camden Consulting, Inc., and SKS Consulting, Inc.
In May 2004, the SEC filed a civil enforcement action in the United States District Court for the Southern District of Florida, SEC v. Mutual Benefits Corp., et al., Case No. 04-60573-CIV-MORENO (the “SEC Fraud Action”), against MBC and various “relief defendants,” including Steiner’s shell corporations. On May 4, 2004, United States District Judge Federico A. Moreno entered an order appointing Coral Gables attorney Roberto Martinez as the receiver for MBC, with the mandate to identify, secure, trace, and recover the assets of MBC.
According to evidence presented at trial, the jury found that, following the closure of MBC and the appointment of the MBC receiver, Steiner engaged in money laundering transactions designed to conceal the source, location, ownership, and control of his proceeds from the MBC fraud. At the same time, Steiner acted to obstruct the SEC, the MBC receiver, and the United States District Court.
Evidence at trial also disclosed that in 2006 and early 2007, Steiner submitted false and misleading financial disclosure documents to the SEC to persuade the SEC to agree to a favorable settlement of the SEC claims against him and his shell corporations Camden Consulting and SKS Consulting, in the SEC Fraud Action. Based upon Steiner’s fraudulent financial disclosure, the SEC agreed to a reduced penalty of $3.9 million, and on April 10, 2007, the District Court entered a Final Judgment in the SEC Fraud Action ordering Steiner, SKS and Camden to pay $3.9 million to the court-appointed receiver for MBC. Evidence at trial established that Steiner acted to thwart the MBC receiver’s efforts to trace and recover MBC assets and recover on the final judgment. Among other things, Steiner repeatedly lied under oath during depositions and physically concealed documents, including checks representing proceeds from the MBC fraud.
Steiner is currently awaiting trial in two related cases in the Southern District of Florida. In United States v. Joel Steinger, et al., Case No. 08-21158-CR-Scola, Steiner and co-defendants Joel Steinger and Anthony Livoti are charged with conspiracy to commit mail and wire fraud and money laundering, in relation to the MBC fraud scheme. In United States v. Joel Steinger et al., Case No. 12-20123-CR-Rosenbaum, Steiner, Joel Steinger, and Henry Fecker III are charged with engaging in a multi-million dollar scheme to defraud insurance companies.
Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy and Dwayne E. Williams.
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.
Fort Hall Man Pleads Guilty to Assault with Dangerous WeaponRead the Press Release
POCATELLO – Adan Diaz, 21, of Fort Hall, Idaho, pleaded guilty yesterday in United States District Court to assault with a dangerous weapon, U.S. Attorney Wendy J. Olson announced.
In court yesterday, Diaz pleaded guilty to the indictment filed on September 25, 2012, and admitted that on January 28, 2012, he pointed a gun at the victim who was sitting in a vehicle near a Fort Hall residence. Diaz fired a shot, which missed the victim but struck a window in the vehicle. Diaz later admitted in an interview with Fort Hall Police that he intended to injure the victim when he pointed the gun at him. Police later recovered the gun, a Keltec .380 caliber handgun.
The charge is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for May 28, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Fort Hall Police Department and the Federal Bureau of Investigation.
Former Yazoo Federal Prison Guard Sentenced for Accepting BribeRead the Press Release
Natchez, Miss – Robert Kale Johnson, 38, of Bentonia, Mississippi, was sentenced in U.S. District Court today to serve 15 months in prison followed by 3 years of supervised release for accepting a $5,000 bribe while working as a prison guard at the Yazoo Federal Correction Complex in Yazoo, Mississippi, announced U.S. Attorney Gregory K. Davis and Teresa M. Gulotta-Powers, Special Agent in Charge of the DOJ Office of Inspector General. Johnson was also ordered to pay a $1,500.00 fine.
During his guilty plea on November 19, 2012, Johnson admitted accepting the bribe while employed as a corrections officer and using his official position to bring contraband to inmates.
Special Agent in Charge T.M. Gulotta-Powers of the Department of Justice Office of the Inspector General, Miami Field Office, stated, “The integrity of our federal prison system depends upon the honesty and commitment to duty of correctional personnel. DOJ OIG will continue to partner with the U.S.Attorney’s Offices and the Federal Bureau of Prisons to aggressively pursue breaches of those duties by correctional officers who put their own financial gain above the security of our institutions.”
U.S. Attorney Davis praised the efforts of the DOJ Office of Inspector General and the Federal Bureau of Prisons Office of Internal Affairs who investigated the case, as well as Assistant U.S. Attorney Mary Helen Wall who prosecuted the case.###
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Our nation-wide commitment to reducing gun crime in America.
Former NYC Department of Corrections Chaplain and His Brother Sentenced in Manhattan Federal Court for Housing Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that LEIB GLANZ, a former New York City Department of Corrections chaplain who conspired with his brother MENASHE GLANZ to defraud the government of more than $220,000 in federal housing subsidies, was sentenced today in Manhattan federal court to 45 days in prison. He previously pled guilty to making false statements to the U.S. Department of Housing and Urban Development (“HUD”) with the intent to defraud and was sentenced by U.S. District Judge P. Kevin Castel. MENASHE GLANZ previously pled guilty to theft of government funds and was sentenced to six months in prison last week by Judge Castel.
According to the Information, Indictment, and other court documents, as well as statements made during proceedings in the case:
LEIB GLANZ is a former Chaplain with the New York City Department of Corrections, who previously worked at the Brooklyn Detention Complex, in Brooklyn, New York, and the Manhattan Detention Complex, in Manhattan, New York, from October 2006 through June 2009.
LEIB and MENASHE GLANZ participated in a scheme to fraudulently obtain Section Eight Program housing benefits. Under the Section Eight Program, HUD subsidizes the rent of low-income tenants who meet certain income and eligibility requirements. In New York City, this program is administered by the New York City Housing Authority (“NYCHA”) and the New York City Department of Housing Preservation and Development (“HPD”).
As part of this scheme, MENASHE GLANZ applied for and obtained Section Eight housing benefits to live at an apartment located in Brooklyn, New York (the “Section Eight Apartment”). While MENASHE GLANZ received these benefits, his brother LEIB GLANZ actually resided at this apartment from 1996 through September 2011, while MENASHE GLANZ lived at another apartment that was not subsidized by the Section Eight Program. Additionally, according to documents submitted to NYCHA and HPD, LEIB GLANZ previously signed contracts with NYCHA on behalf of the landlord of the Section Eight Apartment, the United Talmudical Academy, which also purportedly employed MENASHE GLANZ. In the course of this scheme, LEIB and MENASHE GLANZ defrauded NYCHA and HPD of a total of approximately $222,985, with LEIB GLANZ responsible for defrauding NYCHA and HPD of approximately $36,484, and MENASHE GLANZ responsible for defrauding NYCHA and HPD of approximately $186,501.
In addition to the prison term, Judge Castel sentenced LEIB GLANZ, 54, of Brooklyn, New York to one year of supervised release and ordered him to pay a fine of $3,000 and restitution in the amount of $36,484. Judge Castel sentenced MENASHE GLANZ, 51, of Brooklyn, New York, to 6 months’ home confinement to be followed by three years’ supervised release in addition to his prison term, ordered him to pay a fine of $3,000, and ordered restitution and forfeiture in the amount of $186,501.
Mr. Bharara praised the investigative work of the New York City Department of Investigation and NYCHA in this investigation.
This matter is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Steve C. Lee and Justin Anderson are in charge of the prosecution.
Former Massey Executive Pleads Guilty to Federal Mine Safety ChargesRead the Press Release
Longtime Massey division president impeded federal mine inspectors and violated mine safety laws
BECKLEY, W. Va. – U.S. Attorney Booth Goodwin today announced that a longtime Massey Energy Company executive pleaded guilty to two federal crimes in connection with an ongoing investigation of Massey. David Hughart, 53, of Crab Orchard, West Virginia, admitted that he conspired to impede the Mine Safety and Health Administration (MSHA) and conspired to violate mine health and safety laws. Hughart pleaded guilty to the charges today in federal district court in Beckley, W.Va. Hughart is the former president of Massey’s Green Valley Resource Group and is the highest-ranking official charged to date in an ongoing federal investigation.
“Mine safety and health laws are not optional," said U.S. Attorney Booth Goodwin. "This prosecution reiterates the message that mine safety violations are very serious crimes."
Hughart admitted that he and others at Massey conspired to violate health and safety laws and concealed those violations by warning mining operations when MSHA inspectors were arriving to conduct mine inspections.
Hughart is believed to be the highest-ranking mine official ever convicted of conspiracy to impede MSHA or conspiracy to violate mine health and safety standards.
Coal mines in the United States are subject to an array of mandatory federal mine health and safety standards designed to prevent dangers such as explosions, roof collapses, and fires. MSHA conducts frequent, unannounced mine inspections to monitor compliance with those requirements. When MSHA inspectors find violations of health and safety requirements, mine owners are subject to monetary penalties and, in some cases, production shutdowns until violations are corrected.
The investigation was conducted by the Federal Bureau of Investigation, the Department of Labor Office of Inspector General, and the Internal Revenue Service Criminal Investigation Division. Alpha Natural Resources, Inc., which acquired Massey’s operations in a June 2011 merger, is continuing to cooperate with the investigation.
Hughart faces up to six years in prison and a $350,000 fine when he is sentenced on June 25, 2013 by United States District Judge Irene C. Berger.
Counsel to the United States Attorney Steven Ruby is handling the prosecution.
Former Maryland Correctional Officer Pleads Guiltyto Conspiring to Assault an InmateRead the Press Release
Philip Mayo, a former correctional officer at the Roxbury Correctional Institution (RCI) in Hagerstown, Md., pleaded guilty to conspiring with other RCI officers to assault an inmate at the state prison during the 11 p.m. to 7 a.m. (midnight) shift on March 8-9, 2008.
Mayo, 41, of Randolph, N.Y., pleaded guilty to conspiring with other RCI officers to beat K.D. during the midnight shift on March 9, 2008.
According to court documents filed in connection with his guilty plea, Mayo and other officers met at RCI during the midnight shift and agreed to assault K.D. in retaliation for a prior incident involving K.D. and another officer. Mayo and three other correctional officers then entered K.D.’s cell in order to assault inmate K.D., while a fourth officer watched. Officers then assaulted K.D.
“Mr. Mayo has admitted that he and other officers conspired to use unlawful force to punish an inmate,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “The Justice Department will continue to vigorously prosecute those officers who violate the rights of inmates.”
Mayo faces a maximum penalty of five years in prison and a fine of $250,000. Sentencing is set for Oct. 28, 2013, before U.S. District Judge James K. Bredar.
In connection with an assault on inmate KD that occurred during the 7 a.m. to 3 p.m. shift on March 9, 2008, former RCI Correctional Officers Ryan Lohr and Dustin Norris each recently entered guilty pleas before Judge Bredar.
The investigation by the Frederick, Md., Resident Agency of the FBI is ongoing. The case is being prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Sanjay Patel of the Civil Rights Division of the Department of Justice, with the assistance of the U.S. Attorney’s Office for the District of Maryland.
Former Jackson Police Officers Sentenced for Accepting BribesRead the Press Release
Jackson, Miss. - Former Jackson Police Officers Monyette Quintel Jefferson, 27, Terence Dale Jenkins, 25, and Anthony Ricardo Payne, Jr., 26, were sentenced in U.S. District Court today for accepting bribes from an undercover FBI agent, U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen announced.
Monyette Quintel Jefferson was sentenced to 10 years in prison followed by three years of supervised release, and ordered to pay restitution to the FBI in the amount of $20,500.00.
Terence Dale Jenkins was sentenced to 10 years in prison followed by three years of supervised release, and ordered to pay restitution to the FBI in the amount of $10,000.00.
Anthony Ricardo Payne, Jr. was sentenced to 9 years in prison followed by three years of supervised release, and ordered to pay restitution to the FBI in the amount of $10,000.00
On June 10, 2010, Monyette Quintel Jefferson made an agreement with an undercover FBI agent, who he believed was a drug trafficker, to protect a shipment of 100 kilograms of cocaine that would be coming into Hawkins Field Airport in Jackson, Mississippi.
On June 25, 2010, the undercover FBI agent, posing as a drug trafficker, met with Jefferson and Anthony Ricardo Payne, Jr. at the Metro Center Mall in Jackson. Jefferson and Payne agreed to protect a shipment of cocaine that was coming into Jackson that day. They also agreed that Jefferson, Payne and another police officer would receive payment for protecting the shipment of cocaine coming into Jackson.
Jefferson arrived at Hawkins Field in his JPD patrol vehicle and met with the undercover FBI agent. At approximately 3:50 pm that same day, JPD Officer Terrence Dale Jenkins, driving a JPD patrol vehicle, met with the undercover FBI agent in the parking lot of Hawkins Field for the purpose of providing police protection for a drug transaction. The undercover FBI agent informed Jenkins that the total drug shipment involved approximately 100 kilograms of cocaine. At approximately 3:55 p.m., another FBI agent, working in an undercover capacity, arrived and simulated the purchase of approximately 20 kilograms of cocaine from the first undercover FBI agent in the presence of Jenkins. After the exchange took place, the first undercover FBI agent paid Jenkins $5,000 for his assistance in protecting this drug transaction. Jenkins then provided further protection by following the second undercover FBI agent from Hawkins Field to Interstate 20 in Jackson.
At approximately 4:10 p.m., JPD Officer Anthony Ricardo Payne, Jr., driving a JPD patrol vehicle, met the first undercover FBI agent in the main parking lot of Hawkins Field for the purpose of providing police protection for another purported drug transaction. The undercover FBI agent informed Payne that the total drug shipment involved approximately 100 kilograms of cocaine. At approximately 4:15 p.m., a different undercover FBI Agent arrived and simulated the purchase of approximately 20 kilograms of cocaine from the first undercover FBI agent in the presence of Payne and Jefferson. After the exchange, the first undercover FBI agent paid Payne $5,000 for helping to protect the simulated drug transaction. Payne then provided further protection by following the third undercover FBI agent from Hawkins Field to the vicinity of Hanging Moss Road in Jackson.
After the simulated drug transactions were completed, at approximately 4:30 p.m., the undercover FBI agent paid Jefferson $6,000 in the Hawkins Field parking lot for providing protection for the first undercover FBI agent during the aforementioned simulated drug transactions.
“The vast majority of police officers work hard every day to protect the citizens and the communities they serve,” said U.S. Attorney Gregory K. Davis, “but these officers chose to use their law enforcement positions to protect illegal drug transactions. Their corrupt conduct is deserving of the sentences imposed today.”###
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Our nation-wide commitment to reducing gun crime in America.
Five Cleveland Men Indicted on Federal Firearms ChargesRead the Press Release
Five Cleveland men were indicted on charges of being felons in possession of a firearm or ammunition, said U.S. Attorney Steven M. Dettelbach.
The cases are unrelated. Those indicted are: Kevin M. Bembry, age 28; Alfred Jones, Jr., age 31; Vincent Pickett, age 26; Allen L. Tyes, age 33, and Richard Warren, age 47.
“This office places a high priority on keeping firearms out of the hands of those who are forbidden by law from obtaining them,” Dettelbach said. “Whether it is a person who uses a gun to commit a violent crime, a felon illegally obtaining a firearm or a straw purchaser trying to circumvent the law, we will aggressively pursue those who would violate our nation’s firearms laws.”
Bembry possessed a .357-caliber revolver on Jan. 24 despite a previous conviction for attempted felonious assault, according to the indictment.
Jones possessed a .380-caliber pistol and nine rounds of ammunition on Jan. 15, despite previous convictions for drug trafficking and involuntary manslaughter, according to the indictment.
Pickett possessed a 12-gauge shotgun shell on Feb. 13, despite previous convictions for aggravated robbery with a firearms specification and aggravated burglary with a firearms specification, according to the indictment.
Tyes possessed a .45-caliber pistol and ammunition on Feb. 11, despite previous convictions for attempted felonious assault and being a felon in possession of a firearm, according to the indictment.
Warren possessed a .45-caliber revolver and ammunition on Jan. 8, despite previous convictions for aggravated robbery, felonious assault and aggravated burglary, according to the indictment.These cases are being prosecuted by Assistant United States Attorney Kelly L. Galvin following investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cleveland Division of Police, East Cleveland Police, the Cuyahoga Metropolitan Housing Authority Police and the Ohio Adult Parole Authority.
Federal Jury Convicts Austin Attorney Marc G. Rosenthal in Connection with South Texas Bribery SchemeRead the Press Release
In Corpus Christi, a federal jury convicted 51–year-old Austin attorney Marc Garrett Rosenthal of federal charges related to a bribery scheme in South Texas announced United States Attorney Robert Pitman, Federal Bureau of Investigation Special Agent in Charge Armando Fernandez, San Antonio Division, Drug Enforcement Administration Special Agent in Charge Javier Pena, Houston Field Division, and Brownsville Police Chief Carlos Garcia.
After a four week-long trial, jurors convicted Rosenthal of conspiring to bribe a State District Judge, bribe witnesses in both state and federal court cases, file fraudulent personal injury cases in both state and federal courts and deprive the citizens of Cameron County, Texas, of the right to honest services of an elected official.
Evidence presented at trial revealed that from November 2005 until December 2009, Rosenthal and others, including 404th Judicial District Court Judge Abel Corral Limas and former state legislator and attorney Jose Santiago “Jim” Solis, participated in a scheme in which Rosenthal directly, or facilitated by Solis, paid money and other considerations to Limas which resulted in favorable court rulings for Rosenthal & Watson clients.
The evidence also revealed that Rosenthal directed others to pay certain individuals, including funeral home directors and a public employee, for the referral of plaintiff’s personal injury cases; make arrangements to manipulate the random case assignment system at the Cameron County District Clerk’s Office so that cases were filed in Courts preferred by Rosenthal & Watson; and, pay witnesses to provide false testimony and statements.
Rosenthal was convicted of one count of conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute; five counts of mail fraud; three counts of tampering with witnesses or proceedings; one count of extortion; and, three counts of mail fraud, aiding and abetting and deprivation of honest services.
Rosenthal faces up to 20 years in federal prison per count at sentencing scheduled for June 3, 2013, 8:30 a.m. before U.S. District Judge Andrew Hanen in Brownsville. The United States is also seeking the forfeiture of approximately $5.95 million from Rosenthal in relation to the criminal case.
This investigation was conducted by the Federal Bureau of Investigation, Drug Enforcement Administration and the Brownsville Police Department. Southern District of Texas Assistant United States Attorneys Michael Wynne and Oscar Ponce are prosecuting this case on behalf of the Government.Federal Grand Jury in Fort Wayne Returns IndictmentsRead the Press Release
Fort Wayne, INCThe United States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returned the following Indictments on February 27, 2013:
Jamison Gudorf, 40, of Fort Wayne, Indiana, is charged in a two count Indictment with being a felon in possession of a firearm and receipt and possession of a non-registered firearm, both occurring on or about December 7, 2012. The Indictment also seeks forfeiture of firearms. These charges were filed as the result of a joint investigation conducted by the Allen County Police Department Vice and Narcotics Division, the New Haven Police Department, and the FBI Fort Wayne Safe Streets Task Force, which is comprised of FBI agents and officers from the Indiana State Police, Allen County Police Department and the Fort Wayne Police Department. The Bureau of Alcohol, Tobacco, Firearms and Explosives assisted with this investigation. This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony W. Geller.
Michael Fabini, 33, and Marshall Butler, 33, both of Fort Wayne, Indiana, were charged in a 44 count Indictment. Both defendants were charged with conspiring to distribute and possess with intent to distribute marijuana from on or about September 21, 2007, and continuing to on or about December 6, 2012; maintaining a drug-involved premises from on or about September 21,
2007, and continuing to on or about March 6, 2008; and maintaining a drug-involved premises from on or about October 8, 2009, and continuing to on or about November 1, 2011. Michael Fabini was also charged with possessing marijuana with the intent to distribute on or about March
5, 2008, and on or about December 6, 2012; distributing marijuana on or about October 24, 2012; engaging in monetary transactions in property derived from specified unlawful activity on or about August 7, 2009, and on or about February 10, 2012; and laundering monetary instruments from on or about May 14, 2010, to on or about March 21, 2011; from on or about June 11, 2010, to on or about February 14, 2011; from on or about August 6, 2010, to on or about February 11, 2011; and from on or about October 13, 2010, to on or about March 28, 2011. The Indictment also seeks forfeiture of a residence and lawn care equipment. These charges were filed as the result of a joint investigation conducted by the Allen County Police Department Vice and Narcotics Division, the New Haven Police Department, and the FBI Fort Wayne Safe Streets Task Force, which is comprised of FBI agents and officers from the Indiana State Police, Allen County Police Department and the Fort Wayne Police Department. The Bureau of Alcohol, Tobacco, Firearms and Explosives assisted with this investigation. This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony W. Geller.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
##END##Federal Grand Jury in Fort Wayne Returns IndictmentsRead the Press Release
Fort Wayne, INCThe United States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returned the following Indictments on February 27, 2013:
Ronald C. Bodley, 41, of Fort Wayne, Indiana, is charged in a single count Indictment with possession with intent to distribute cocaine base “crack”, cocaine and marijuana on or about January 28, 2013. The Indictment also seeks the forfeiture of U.S. currency. This charge was filed as a result of an investigation by Drug Enforcement Administration and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony W. Geller.
Contrel J. Johnson, 22, of Fort Wayne, Indiana, is charged in a single count Indictment with being a felon in possession of a firearm on or about February 3, 2013. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Lovita Morris King.
Ku-La Lwin, 18, of Fort Wayne, Indiana, is charged in a two count Indictment with receipt and possession of a non-registered firearm and being an unlawful user of controlled substance in possession of a firearm, both occurring on or about January 18, 2013. These charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Tina L. Nommay.
Leonard C. Riley, 21, of Fort Wayne, Indiana, is charged in a single count Indictment with being a felon in possession of a firearm on or about February 4, 2013. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Lovita Morris King.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
##END##Falfurrias Man Sent to Prison for Alien Smuggling Scheme That Resulted in DeathRead the Press Release
CORPUS CHRISTI, Texas – Lewey Martinez, 32, of Falfurrias, has been ordered to prison for his role in an alien smuggling and harboring scheme that resulted in the September 2011 death of a 24-year-old Mexican national, United States Attorney Kenneth Magidson announced today. Martinez pleaded guilty Nov. 14, 2012.
At a sentencing hearing yesterday afternoon, Senior U.S. District Judge Janis Graham Jack, who accepted the guilty plea, handed Martinez a 115-month sentence. Martinez will also be required to serve a term of three years of supervised release following completion of the prison term.
At his plea hearing last year, the government detailed that for five years, Martinez coordinated the transportation of aliens around the U.S. Border Patrol Checkpoint in Falfurrias. On the evening of Sept. 15, 2011, Martinez arranged for approximately 20 illegal aliens to hike around the checkpoint with the assistance of guides. After walking around the checkpoint, the aliens were driven to a stash house on Martinez’s property.
Shortly after the group’s arrival, two brush guides drove to the stash house with an additional alien who had died, or nearly died, from exposure and dehydration. When it became apparent the victim was deceased, Martinez and two others loaded the victim's body into a pickup truck and drove it to a public intersection. Martinez then called the emergency operator from a payphone and directed police to the body. Following his arrest, Martinez admitted his role in the smuggling operation and his involvement in the disposal of Gonzalez's body.
Martinez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges in this case was conducted by Homeland Security Investigations. Assistant United States Attorney Jeffrey D. Preston prosecuted the case.
Essex County, N.J., Man Admits Transporting Explosive MaterialsRead the Press Release
TRENTON, N.J. – An Essex County, N.J., man today admitted transporting explosive chemicals in a piece of polyvinyl chloride, or PVC, pipe to Pennsylvania without a federal license or permit, U. S. Attorney Paul J. Fishman announced.
Anthony Nicholas Gallo, 20, of North Caldwell, N.J., pleaded guilty before U.S. District Court Judge Anne E. Thompson in Trenton federal court to an Information charging him with transportation of explosive materials without a license or permit issued by the U.S. Attorney General.
According to the Information to which Gallo pleaded guilty and statements made in court:
On Jan. 8, 2012, Gallo went to Pennsylvania and blew up potassium chlorate and magnesium in a PVC pipe, which provided a contained environment for the chemicals to produce a more powerful explosion. The potassium chlorate mixture is considered to be an explosive by the U. S. Bureau of Alcohol, Tobacco, and Firearms.
The charge to which Gallo pleaded guilty carries a maximum penalty of 10 years in prison and a fine of $250,000. Sentencing is scheduled for June 5, 2013.
U.S. Attorney Fishman credited special agents, detectives and investigators assigned to the FBI Joint Terrorism Task Force, under the direction of Acting Special Agent in Charge David Velazquez, with the investigation leading to today’s guilty plea. The FBI Joint Terrorism Task Force comprises law enforcement officers from 30 federal, state and local agencies throughout New Jersey. He also thanked the North Caldwell Police Department and the Essex County Prosecutor's Office for their significant contributions to this investigation.The government is represented by Assistant U.S. Attorney Joyce M. Malliet of the U.S. Attorney’s Office National Security Unit in Newark.
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Defense counsel: Anthony Iacullo Esq., Nutley, N.J.
Gallo, Anthony Information
Essex County, N.J., Man Admits Role in Two Bank RobberiesRead the Press Release
NEWARK, N.J. - An Essex County, N.J., man today admitted robbing the Garden State Community Bank in Newark, N.J., on two separate occasions, U.S. Attorney Paul J. Fishman announced.
Alfred Ferguson, 55, of Newark, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an Information charging him with two counts of bank robbery. On Oct. 9, 2012, Ferguson was arrested fleeing the scene of his most recent bank robbery on a bicycle.
According to documents filed in this case and statements made in court:
Alfred Ferguson committed two bank robberies – both of the Garden State Community Bank in Newark – on Sept. 17, 2012, and Oct. 9, 2012. Ferguson used a similar procedure for each robbery: After entering the bank wearing a red bandana over the lower part of his face, Ferguson would verbally threaten the bank teller, vault over the glass partition, and empty money from bank tellers’ cash drawers.
Each charge of bank robbery is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. Sentencing is scheduled for June 5, 2013.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velasquez, with the investigation leading to charges. He also thanked the Newark Police Department for their contribution to the case.
The government is represented by Assistant U.S. Attorney David M. Eskew of the U.S. Attorney’s Office General Crimes Unit in Newark.
13-099Defense counsel: John Yauch Esq., Federal Public Defender’s Office, Newark
Ferguson Information
Dudley Pleads Guilty to Wire Fraud in Connection with Investment Fraud SchemeRead the Press Release
SALT LAKE CITY – John S. Dudley, age 58, of Sandy, pleaded guilty to wire fraud in U. S. District Court in Salt Lake City this week and agreed to pay restitution of approximately $6,868,000 to victims of a fraudulent investment scheme. The final restitution amount will be determined by the court.
The plea agreement includes a recommendation to the court that a 60-month sentence be imposed in the case. Sentencing in the case is set for July 25, 2013, in U.S. District Judge Robert J. Shelby’s courtroom. Federal prosecutors will also recommend that Dudley be turned over to Immigration and Customs Enforcement for removal proceedings following the completion of his sentence – a process Dudley agreed not to contest as a part of his plea agreement. Dudley is a citizen of Great Britain.
Dudley was charged in a 17-count indictment returned in May 2011 in connection with what the indictment alleged was a scheme to induce individuals to invest money with him for use in various investment programs.
The indictment alleged Dudley made a variety of representations to potential investors, including telling them they could expect monthly returns of 5-10 percent; that he had not suffered a trading loss since 1978; that investors’ funds would be used exclusively for investment purposes; that he had personally done very well in his investments and had never made less than 5 percent per month over the last 30 years; that investors’ money was backed by a “senior life settlement policy” that reduced or eliminated investors’ risk of loss; and that investing with him was an exclusive opportunity with only a limited number of investors allowed to invest with him at one time.
As a part of the plea agreement reached with federal prosecutors, Dudley admitted he sent an e-mail to an individual, identified as U.A. in the plea agreement, with the subject line “Re: Castle Creek Bank Details.” He admitted that the e-mail was a part of his attempt to execute the fraud scheme by obtaining money under false representations. Investor U.A. is identified in the indictment as a Utah Department of Commerce’s Division of Securities investigator acting in an undercover capacity in the indictment.The case is being prosecuted by the U.S. Attorney’s Office in Salt Lake City and investigated by special agents and investigators of the FBI, IRS Criminal Investigation Division, and the Utah Department of Commerce.
Doran Leslie Hewitt, II Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on February 28, 2013, before Chief U.S. District Judge Richard F. Cebull, DORAN LESLIE HEWITT, II, a 32-year-old resident of Hardin, appeared for sentencing. HEWITT was sentenced to a term of:
- Prison: 25 days (time served)
- Special Assessment: $100.00
- Supervised Release: 3 years
HEWITT was sentenced in connection with his guilty plea to conspiracy to maintain drug-involved premises.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
Around March of 2011, law enforcement received a complaint that Ross Pattison and others were distributing marijuana to numerous people in Hardin and other places in Big Horn County. Through investigation and interviews, law enforcement determined that Pattison possessed a Montana medical marijuana card but was not listed as a caregiver because he is a convicted felon. Pattison hired HEWITT to assist with paperwork with Pattison's tax business as well as the marijuana distribution network. HEWITT also did some marijuana deliveries for Pattison.
On April 22, 2011, law enforcement executed search warrants for Pattison's Hardin residence and two pickup trucks. Law enforcement seized approximately five pounds of marijuana, approximately $124,000 in cash, digital scales, a paper grocery bag full of zip-lock bags, a methamphetamine pipe with residue, hashish, and photocopies of patient medical marijuana cards for marijuana caregivers Brandon Strecker, HEWITT, Travis Birdinground, and Jason Gierke.
On May 23, 2011, law enforcement executed a search warrant at Strecker's Hardin residence. Law enforcement seized a total of 420 marijuana plants - 112 marijuana plants in the attached garage, 239 marijuana plants in the bedroom, one plant in the living room, 68 in the greenhouse and shed. They also seized loose marijuana.
Several witnesses confirmed that Pattison would take and receive orders for marijuana and HEWITT, Gierke, and Birdinground would deliver marijuana to the buyers. Several witnesses will testify that after Pattison's house was searched, all deliveries were then made by Strecker or the others.
Birdinground confirmed that Pattison and Strecker paid Birdinground $800 every two weeks to deliver marijuana for them. Gierke confirmed that Gierke, Pattison, and Strecker were "business partners." Pattison put it all together and they grew the marijuana at Strecker's residence.
Chemists with the DEA laboratory in San Francisco tested the marijuana items submitted from the search of Strecker's residence. Some of the items were plant clippings as well as loose marijuana. The result of the analysis was that those items contained a detectable amount of marijuana, a Schedule I controlled substance.
Pattison, Birdinground, Gierke, and Strecker pled guilty to federal charges
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that HEWITT will likely serve all of the time imposed by the court. In the federal system, HEWITT does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Drug Enforcement Administration and the Montana Division of Criminal Investigation - Billings.
Dominique Adams Pleads Guilty to Drug Trafficking, Firearm and Escape ChargesRead the Press Release
DOMINIQUE ADAMS, age 22, a resident of Metairie, Louisiana, pled guilty today before U. S. District Judge Jane Triche Milazzo to violations of the Controlled Substance Law, the National Firearms Act and for escape from a federal officer, announced U. S. Attorney Dana Boente.
ADAMS pled guilty to felonies involving distribution of crack cocaine, carrying a firearm in furtherance of his drug distribution and felony escape from federal ATF officers who had arrested him for the above crimes. ADAMS faces a maximum of 10 year imprisonment on the narcotics charge, a mandatory minimum of five years imprisonment with a maximum penalty of life imprisonment for carrying a firearm in furtherance of his drug distribution and the escape charge carries a maximum penalty of five years imprisonment.
This case was investigated by Special Agents of the United States Justice Department, Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant United States Attorney Tony Gordon Sanders of the Violent Crimes Unit.(Download Factual Basis )
Departments of Justice and Labor Announce Availability of $32 Million in Grants to Help Formerly Incarcerated Juveniles and Women Prepare to Enter the WorkforceRead the Press Release
The Departments of Justice and Labor today announced the availability of approximately $32 million through two grant competitions that will offer job training, education and support services to formerly incarcerated youths and women.
“Expanding access to job training programs and educational opportunities is a proven strategy for reducing recidivism and preventing crime,” said Attorney General Eric Holder. “By supporting efforts to help formerly incarcerated women and young adults rebuild their lives – and become productive, law-abiding members of their communities – the Departments of Justice and Labor are making good on our shared commitment to improving outcomes and ensuring public safety.”
“We are a country that believes in second chances,” said Department of Labor Acting Secretary Seth D. Harris. “Job training offers opportunities to learn skills and reshape lives. The grants announced today will provide critical support for women and young people who are eager for employment and a productive role in their communities.”
The Department of Labor will award a total of $20 million to four organizations to operate programs that work with juvenile offenders and youths at-risk of becoming juvenile offenders in high-poverty, high-crime communities. Each organization may submit only one application for a grant of up to $5 million.
Additionally, the Department of Labor will award a total of $12 million to eight organizations to provide job training for formerly incarcerated individuals of all ages that leads to industry-recognized credentials. Mentoring and assistance connecting to supportive services such as housing, substance abuse and mental health treatment, and assistance with parenting and child reunification, also will be available to participants. These grants are designed to expand opportunities for both youths and adults who demonstrate characteristics most common to female former offenders. However, services must also be open to eligible formerly incarcerated males. Each organization may submit only one application for a grant of up to $1.5 million.
Reintegrating formerly incarcerated individuals is a government-wide effort supported by the Federal Interagency Reentry Council. Established by the U.S. Department of Justice and chaired by Attorney General Eric Holder, the council brings together numerous federal agencies to advance policies and programs to make communities safer, assist individuals returning to communities from prison or jail in becoming productive taxpaying citizens, and save taxpayer dollars by lowering the direct and collateral costs of incarceration.
Any nonprofit organization with 501 (3)(c) status that meets the requirements of the solicitation may apply. The solicitations for grant applications, which include information about how to apply, are available at www.grants.gov .
Dallas Woman, Who Represented Herself as A Real Estate Investor, Is Sentenced to 63 Months in Federal Prison for Leading Scheme to Defraud Residential Mortgage LendersRead the Press Release
Scheme Resulted in More Than $2 Million in Losses to Lenders
DALLAS — Patience Lavon Jackson, 50, of Arlington, Texas, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to 63 months in federal prison and ordered to pay $2,801,661.95 in restitution, following her conviction for leading a conspiracy to defraud residential mortgage lenders, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Judge Boyle ordered that Jackson surrender to the Bureau of Prisons on April 3, 2013.
Jackson pleaded guilty in October 2012 to one count of conspiracy to commit mail and wire fraud. Co-defendant Anthony Davis, Jr., 32, of Mesquite, Texas, who was employed as a branch manager at Bank of America, pleaded guilty in September 2012 to one count of conspiracy to commit mail fraud and is scheduled to be sentenced on April 25, 2013. Charlie M. Smith, Jr., of California, another co-defendant in the case, is facing similar charges in the Southern District of Ohio; that case will be adjudicated first.
According to documents filed, Jackson admitted that the purpose of her scheme was to fraudulently obtain residential real estate mortgages. Holding herself out as a real estate investor, she offered investment “seminars” at her house. Her “investment program” included recruiting straw purchasers, including Davis, to buy real estate and obtain fraudulent proceeds from the transaction by submitting fake invoices for consulting, upgrades or repairs. In facilitating the fraudulent real estate transactions, she caused title companies to mail closing documents to residential mortgage lenders who then wired money to fund the purchases.
Jackson facilitated the mortgage loans for the straw purchasers by submitting false and fraudulent loan applications and documents. These applications included material misrepresentations regarding the borrower’s income, employment, assets and intention to occupy the property. Jackson also admitted that she supplied cash to some borrowers to make it appear as if the individual had the necessary financial assets to qualify for the loan, when they did not. Jackson also admitted that she received disbursements from some of the sellers that were not disclosed to the mortgage lenders.
For example, in one transaction, she facilitated fraudulent loans for an individual, “A.B.,” who was recruited by co-defendant Smith, to purchase Jackson’s residence on Hillcrest Lane in Dallas. Jackson admits that she notarized loan and closing documents purportedly bearing A.B.’s signature, but that she never met A.B. She also admitted that she provided money to A.B. for his down payment to purchase the Hillcrest property. False statements on this loan application and other documents caused the two mortgage lenders, JP Morgan Chase and First Magnus Financial Corporation, to wire a total of approximately $1.42 million to a title company to fund A.B’s purchase.
Davis admitted that in 2007, he conspired with Jackson and others to commit mail fraud. He attended real-estate investment “seminars” at Jackson’s house. She also recruited him to be a straw purchaser in her scheme, convincing him to purchase an investment property on Vickery in Dallas. Davis admitted that his loan application contained numerous false statements, including the amount of available cash assets and his intention to occupy the property as his primary residence.
In another instance, Davis signed a false verification of deposit form for an investor, whom Jackson recruited, falsely representing that this person had a certificate of deposit (CD) at Bank of America valued at $74,595. This document was part of this individual’s loan package to purchase a home on Willis Avenue in Dallas.
The conspirators allowed the purchased properties to go into foreclosure by not making the monthly mortgage payments, which resulted in more than $2 million in losses to mortgage lenders.
(This case was prosecuted in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit http://www.stopfraud.gov/.
The investigation was led by the FBI. Assistant U.S. Attorney J. Nicholas Bunch is in charge of the prosecution.
Dallas Man Pleads Guilty in Federal Court, Admitting He Aimed A Laser Pointer at an AircraftRead the Press Release
DALLAS — Kenneth Santodomingo, aka “Juan Goel Pagan” and “Juan Joel Pagan,” 22, appeared this morning before U.S. District Judge Reed C. O’Connor and pleaded guilty to an indictment charging one count of aiming a laser pointer at an aircraft, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Santodomingo was arrested on January 28, 2013 after a criminal complaint was filed for the offense, and he has been in custody since that time. He faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. The Court set Santodomingo’s sentencing hearing for July 25, 2013.
According to documents filed in the case, at approximately 4:08 a.m. on January 28, 2013, two Dallas Police Department (DPD) officers were operating a DPD helicopter over a residential area in search of a motor vehicle burglary suspect when the cockpit was illuminated by a laser pointer approximately four times over a 10-minute period. The intensity of the light refracting across the aircraft’s windscreen obscured the pilot’s vision and impaired his ability to view the instruments and the ground, forcing the pilot to turn the aircraft in a different direction to avoid vision damage and maintain aircraft control.
After pinpointing the origin of the laser, the pilots observed, via the onboard camera’s thermal imaging, an individual in the backyard of a residence in the 7000 block of Lake June Road. When patrol officers arrived at the house, Santodomingo answered the door, admitted to having pointed the green laser light at the helicopter out of curiosity as to how far it would go, and handed over the laser pointer to the officers.
The case is being investigated by the DPD, the FBI and the Transportation Security Administration’s Federal Air Marshal Service. Assistant U.S. Attorney Katherine Miller is in charge of the prosecution.
DEA, LAPD, and SRDTF Conduct Massive West Coast Oxycontin SweepRead the Press Release
LOS ANGELES/SPOKANE, WA (Feb 28)– Early this morning, the Drug Enforcement Administration and the Los Angeles Police Department, in conjunction with the Spokane Regional Drug Task Force (SRDTF), led a large-scale enforcement action targeting a criminal organization spanning from Los Angeles to Eastern Washington. Hundreds of law enforcement officials, including federal agents and state and local officers executed 16 federal search warrants in Spokane, Washington, 30 in Los Angeles, California, and one in Mountlake Terrace, Washington. As a result, 41 subjects were taken into custody on federal charges including 12 in Spokane, one in Mountlake Terrace, and 28 in Los Angeles (two of the 28 were already in California State custody). Additionally, three subjects were arrested by LAPD pursuant to California State arrest warrants in a separate but related investigation.
This enforcement action stems from a thirty-two count Federal Indictment that was handed down in the Eastern District of Washington in January, 2013. The Indictment charges numerous individuals with criminal violation(s) relating to the distribution, possession and attempted possession of oxycodone hydrochloride, in violation of the Federal Controlled Substances Act. Some of the individuals named in the Indictment face potential mandatory minimum sentences of twenty years in prison. In addition, the United States has filed a notice of criminal forfeiture seeking a money judgment in the amount of $20 million dollars, which amount is alleged to represent the amount of proceeds obtained as a result of the charged controlled substances offense(s).Michael C. Ormsby, United States Attorney for the Eastern District of Washington said: “The tireless dedication and extraordinary efforts of the law enforcement officers involved in all aspects of this wide-ranging investigation are commendable. Today’s enforcement action is an outstanding example of the robust and effective working partnership among Federal, state, and local law enforcement officers both here in the Eastern District of Washington and in Los Angeles.”
“Members of this ring regularly circulate between Los Angeles and Spokane to fuel their customer’s insatiable appetite and pharmaceutical addiction,” said Seattle DEA Special Agent in Charge Matthew G. Barnes. “For too long, their web of destruction has fed upon, and profited from the misery of many Washingtonians, only to leave a surplus of illegally obtained pain killers and ruined lives in their wake. I would like to commend the ongoing cooperative efforts of our federal, state and local partners to keep our communities safe.”
“Today’s operation is another fine example of the outstanding partnerships that have been forged between agencies who are committed to ridding our communities of violent organized criminals who prey on our City” said Chief Charlie Beck. “I am extremely proud of the Los Angeles Investigators who worked tirelessly on this case for the past year culminating in today’s arrests.”
Today’s enforcement action is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF program provides supplemental federal funding to the federal and state agencies involved in the investigation of drug-related crimes. This OCDETF investigation is being conducted by the Drug Enforcement Administration, Seattle and Los Angeles Field Divisions, the Spokane Regional Drug Task Force, and the Los Angeles Police Department.
The following agencies provided significant assistance for today’s enforcement action: Drug Enforcement Administration; Los Angeles Police Department; Spokane Regional Drug Task Force; Los Angeles County Sheriff’s Department; Spokane County Sheriff’s Office; Spokane Police Department; Washington State Patrol; Fontana Police Department; Glendale Police Department; Pasadena Police Department; Gardena Police Department; Rialto Police Department; Inglewood Police Department; Long Beach Police Department; United States Marshal’s Service; Federal Bureau of Investigation; Riverside County Sheriff’s Department; Bureau of Alcohol Tobacco and Firearms; Homeland Security Investigations; United States Border Patrol and Internal Revenue Service – Criminal Investigation.
An Indictment Contains Allegations That an Individual Has Committed a Crime. Every Individual Is Presumed Innocent until Proven Guilty Beyond a Reasonable Doubt.
Criminal Charges Related to Oxycodone Filed on Canton ManRead the Press Release
A Canton man was indicted on three counts related to the distribution of Oxycodone, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Christos Karasarides, age 47, was charged with possession with the intent to distribute approximately 40 grams (141 pills) of Oxycodone; possession of Oxycodone and using and maintaining a residence in Canton, Ohio, for the purposes of distributing and using Oxycodone.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the United States Secret Service. The case is being prosecuted by Assistant United States Attorney Samuel A. Yannucci.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Court Upholds Revocation of Federal Firearms License of Owner of Taylor’s Trading Post, Biglerville, PennsylvaniaRead the Press Release
Peter J. Smith, United States Attorney for the Middle District of Pennsylvania and Donald Robinson, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, Philadelphia Field Division jointly announced today that U.S. Middle District Court Judge John E. Jones, III, has adopted the revocation of the Federal Firearms License (FFL) of Scott W. Taylor, d/b/a Taylor’s Trading Post, located in Biglerville, Pennsylvania.
In early 2010, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted a compliance inspection of Taylor’s business, which was operated out of his home in Biglerville, Adams County. ATF discovered that over a three-year period of time, Taylor had committed more than 10,000 violations of the Gun Control Act, which requires firearm dealers to keep detailed and timely records of the purchase and sale of firearms. Law enforcement relies on these records to apprehend criminals who use firearms to commit crimes and to ensure that firearms are not being sold to persons not authorized to possess them.
Despite buying and selling thousands of guns over that three-year period, Taylor failed to record the purchase of 5,715 firearms, the sale of 2,856 firearms, and keep records of the disposition of 1,618 additional firearms. About 160 of the firearms remain unaccounted for. Taylor also admitted to possessing a firearm with an obliterated serial number, which he knew was illegal and failing to report it to law enforcement.
As a result, in November 2011, ATF revoked Taylor’s Federal Firearms License. Taylor challenged this administrative action claiming his three-year failure to comply with the record requirements had not been willful for a variety of reasons, including that he had been ill for a period of time, the loss of a co-worker, and the crash of a computer system.
Judge Jones adopted findings resulting from a hearing before Chief Magistrate Judge Martin C. Carlson in which the violations were determined to be willful because Taylor admitted he knew the law required him to keep the records, he had kept the records in the past, and then failed to keep the records for three years while he continued to buy and sell thousands of guns each year.
As a result of Judge Jones’ ruling, Taylor will be no longer be able to engage in the business of dealing in firearms. ATF will establish terms to facilitate Taylor’s liquidation of his firearms inventory in a specified time period.
This case was handled by Assistant United States Attorney Kate L. Mershimer of the Civil Division of the U.S. Attorney’s Office and ATF Associate Chief Counsel Jeffrey A. Cohen and ATF Division Counsel J. Kevin White.
CountryMark Refining and Logistics LLC to Install $18 Million in Pollution Controls to Resolve Clean Air Act Violations at Indiana RefineryRead the Press Release
The U.S. Environmental Protection Agency (EPA) and the U.S. Department of Justice announced that CountryMark Refining and Logistics LLC (CountryMark) has agreed to pay a $167,000 civil penalty, perform environmental projects totaling more than $180,000, and spend $18 million on new pollution controls to resolve Clean Air Act (CAA) violations at its refinery, located in Mount Vernon, Ind.
Once fully implemented, the pollution controls required by the settlement will reduce emissions of harmful air pollution that can cause respiratory problems, such as asthma, and are significant contributors to acid rain, smog, and haze, by an estimated 1,000 tons or more per year.
“This settlement requires CountryMark to install new controls and implement new practices at its refinery to reduce air pollution from all significant sources at the refinery,” said Ignacia S. Moreno, Assistant Attorney General for the Justice Department's Environment and Natural Resources Division. “Notably, CountryMark will be the third refiner to put in place new measures to substantially reduce gas emissions from its flare, and the company’s commitment to retrofit diesel school buses will also reduce air emissions that affect the area’s residents.”
“Under the settlement, CountryMark will implement new practices and install innovative, cutting-edge pollution controls at its Indiana refinery,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “These innovative controls include ensuring that pollution control devices, such as flares, are operated properly to minimize pollution emitted into the air and to improve their overall efficiency.”
“Because oil production and refining is an important source of jobs in southwest Indiana, my office worked with our state and federal partners to ensure this settlement agreement is carefully structured to address the violations of law and assist the local community with needed improvements to environmental safety and air quality,” said Indiana Attorney General Greg Zoeller, whose office represented the Indiana Department of Environmental Management (IDEM) in settlement negotiations.
The complaint alleges that the company made modifications to its refinery that increased emissions without first obtaining pre-construction permits and installing required pollution control equipment. The CAA requires major sources of air pollution to obtain such permits before making changes that would result in a significant net emissions increase of any pollutant. The complaint also alleges CAA violations related to flare operation, the New Source Performance Standards, and applicable requirements for leak detection and repair (LDAR).
The settlement requires new and upgraded pollution controls, more stringent emission limits, and aggressive LDAR practices to reduce emissions from refinery equipment and processing units. The settlement also requires new controls on the refinery’s flaring devices, which are used to burn-off waste gases. The amount of pollution that flares emit depends on the total amount of waste gases sent to a flare and the efficiency at which the flare is operated when burning those gases. The settlement will ensure proper combustion efficiency for any gases that are sent to a flare and will also cap the total amount of waste gases that can be sent to a flare at the refinery. The flares requirements are part of EPA’s national effort to reduce emissions from flares at refineries, petrochemical, and chemical plants.
The flaring efficiency requirements are settlement with CountryMark are part of EPA’s national enforcement initiative to improve compliance among petroleum refiners and to reduce significant amounts of air pollution from refineries nationwide through comprehensive, company-wide enforcement settlements. The settlement with CountryMark is the 32nd under the EPA initiative. With today’s settlement, 109 refineries operating in 32 states and territories – more than 90 percent of the total refining capacity in the United States – are under judicially enforceable agreements to significantly reduce emissions of pollutants. As a result of the settlement agreements, refiners have agreed to invest more than $6 billion in new pollution controls designed to reduce emissions of sulfur dioxide, nitrogen oxides, and other pollutants by over 360,000 tons per year.
The state of Indiana actively participated in the settlement with CountryMark and has received over $110,000 to fund a supplemental environmental project to remove asbestos-containing material from an old grain elevator in downtown Mount Vernon. The settlement also requires CountryMark to provide at least $70,000 in funding for a supplemental environmental project that will install diesel retrofit and/or idle reduction technologies on school buses and/or non-school bus, publicly-owned vehicles located within 50 miles of the refinery.The consent decree, lodged in the Southern District of Indiana, is subject to a 30-day public comment period and court approval. The consent decree is available for review at www.justice.gov/enrd/Consent_Decrees.html
More information about the settlement: www.epa.gov/enforcement/air/cases/countrymarkrefiningandlogisticsllc.html
More information about EPA’s Air Toxics National Enforcement Initiative: www.epa.gov/compliance/data/planning/initiatives/2011airtoxics.html
Enforcement Alert: EPA Enforcement Targets Flaring Efficiency Violations (August 2012): www.epa.gov/enforcement/air/documents/newsletters/flaringviolations.pdf
More information about EPA’s Petroleum Refinery Initiative: www.epa.gov/compliance/resources/cases/civil/caa/oil/index.htmlConvicted Felon Who Illegally Reentered the U.S. After Being Deported Is SentencedRead the Press Release
February 28, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that WILLIE ANTONIO SAMUEL-BALDAYAQUEZ, 31, a citizen of the Dominican Republic, was sentenced today by United States District Judge Stefan R. Underhill in Bridgeport to 12 months and one day of imprisonment for illegally reentering the United States after being deported.
According to court documents and statements made in court, SAMUEL-BALDAYAQUEZ entered the United States illegally in 1998. In January 2009, he was deported to the Dominican Republic following a 2008 conviction in Connecticut Superior Court for sale of a controlled substance, an aggravated felony under immigration law.
In November 2009, SAMUEL-BALDAYAQUEZ reentered the United States without first obtaining the consent of the Attorney General of the United States or his successor, the Secretary for the Department of Homeland Security, to reapply for admission into the United States.
On June 13, 2011, SAMUEL-BALDAYAQUEZ was arrested by the Norwalk Police Department. He has been detained since his arrest. On December 6, 2012, he pleaded guilty to one count of illegal reentry of a removed alien.
This matter was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations. The case was prosecuted by Assistant United States Attorney Douglas P. Morabito.
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[email protected]Colombian National Sentenced to 20 Years in Prison for International Narcotics TraffickingRead the Press Release
Tampa, FL - U.S. District Judge James D. Whittemore earlier this week sentenced Jose Rivas (61, Colombia) to 20 years in federal prison for conspiracy to possess with intent to distribute cocaine while onboard a vessel subject to the jurisdiction of the United States. Rivas pleaded guilty on December 17, 2012.
According to court documents, Rivas and a co-conspirator departed Colombia in a vessel smuggling 568 kilograms of cocaine. On August 14, 2012, Rivas and his co-conspirator were interdicted by the United States Navy and United States Coast Guard in the international waters of the Caribbean Sea.
“Homeland Security Investigations and our law enforcement partners who participate in the Panama Express North Strike Force will continue to use all available resources to dismantle narcotics trafficking organizations and prevent the introduction of cocaine into our communities,” said Susan McCormick, special agent in charge of Homeland Security Investigations Tampa.
This case was investigated by the Panama Express North Strike Force, a standing Organized Crime Drug Enforcement Task Force (OCDETF), comprised of agents and analysts from the Federal Bureau of Investigation, the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, United States Coast Guard Investigative Service, Naval Criminal Investigative Service, and U.S. Southern Command's Joint Interagency Task Force South. It was prosecuted by the United States Attorney’s Office for the Middle District of Florida.
Cleveland Man Charged with Theft of Government PropertyRead the Press Release
A grand jury returned a one-count indictment charging Victor A. Fields, 57, with theft of government property, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Fields, of Cleveland, stole and converted to his own use $25,958 in Social Security payments made to a deceased payee.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Phillip J. Tripi, following investigation by agents of the Social Security Administration Office of Inspector General.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Chiropractor Found Guilty of Conspiracy to Commit Health Care FraudRead the Press Release
Fort Myers, Florida - U.S. Attorney Robert E. O'Neill announces that a federal jury today found Dr. Stephen M. Lovell (55, Windermere) guilty of conspiracy to commit health care fraud. He faces a maximum penalty of 20 years in federal prison. His sentencing hearing is scheduled for June 10, 2013.
Lovell was indicted in February 2012, along with his co-conspirators Joanna Capote (24, Cape Coral), Francisco Huici Fernandez (40, Cape Coral), Ernesto Diaz (31, Cape Coral), Karen Carmona Jackson (30, Lake Wales), Jeanine Lastres Huici (42, Cape Coral), Marylda Santana (22, Cape Coral), Sonia Arroyo (53, Cape Coral), and Indra Lemus Castellanos (20, Cape Coral). Each of the co-conspirators previously pleaded guilty for their roles in this case.
According to testimony presented at trial, Xtreme Care Rehabilitation Center Inc. (“Xtreme Care”) was operating in Cape Coral as an unlicensed health care clinic since 2009. The State of Florida licensing requirements were circumvented by the conspirators as a result of the purported exclusive ownership of these clinics by licensed health care practitioners, including licensed chiropractor Dr. Stephen M. Lovell. As a result of the purported ownership of the clinics by a licensed health care practitioner, these clinics avoided greater regulatory scrutiny. In actuality, other conspirators including Francisco Huici Fernandez and Ernesto Diaz were the true owners of the clinics.
In furtherance of the health care fraud, the conspirators recruited individuals who purported to be involved in staged accidents and received injuries. These recruited individuals would go to Xtreme Care in exchange for payment. Xtreme Care then billed insurance companies by submitting false claims, through the mail, for purportedly medically necessary treatments that these patients received. However, as the indictment alleged, treatment was either never provided to these patients or was not medically necessary. Upon payment by the insurance company, the proceeds of the fraudulent activity were then transferred to corporations created by the conspirators to launder the proceeds of the criminal activity. Ultimately, the conspirators received the benefits of the fraudulent activity through payments or expenditures for themselves from the corporate bank accounts.
This case was investigated by the Cape Coral Police Department, the Internal Revenue Service Criminal Investigation, the United States Secret Service, Hialeah Police Department, City of Miami Police, Florida Department of Financial Services, along with the assistance of the National Insurance Crime Bureau. It is being prosecuted by Assistant United States Attorney Jesus M. Casas.
Audra Ann Fisher Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on February 27, 2013, before U.S. District Judge Donald W. Molloy, AUDRA ANN FISHER, a 43-year-old resident of Missoula, appeared for sentencing. FISHER was sentenced to a term of:
- House Arrest: 4 months
- Special Assessment: $100.00
- Restitution: $18,192.99
- Probation: 5 years
FISHER was sentenced in connection with her guilty plea to theft of government property.
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:
FISHER's minor son is disabled and has received Supplemental Security Income ("SSI") since January 2000. FISHER is his representative payee and, as such, agreed to perform a number of accounting and reporting duties, including reporting changes in both her and her son's income and her son's living arrangements. FISHER was periodically reminded of her reporting requirements beginning in 2000.
In April 2002, FISHER began collecting child support payments for her son and failed to report them to the Social Security Administration ("SSA") as required by law. On November 10, 2009, during a routine eligibility review, FISHER finally admitted to receiving sporadic child support payments, but under-reported the total amount of money she had received.
In addition to concealing income from the SSA, FISHER also made false statements to the SSA regarding her son's living arrangements. Between May 30, 2006, and December 1, 2006, and again between December 6, 2007, and April 10, 2009, her son was housed at a treatment center in Texas. On March 18, 2008, FISHER completed two separate Representative Payee Reports and falsely stated on both that her son lived with her during the reporting periods. She also provided false information about her son's residency during an April 2, 2009 SSI review. It was not until April 15, 2009, and again on July 15, 2009, that FISHER accurately reported her son's presence at the treatment center.
On May 11 and May 12, 2011, SSA Special Agent Jacques Hansen interviewed FISHER. She admitted that she knew she was required to report the child support payments but concealed them in order to continue collecting her son's SSI benefits. She also admitted that she understood her legal reporting requirements, confirmed that her son had been housed at a treatment center during the periods referenced above, and said that she failed to report his absence because she knew it would affect his eligibility for SSI.
As a result of FISHER's failure to report income changes and her false statements regarding her son's living arrangements, the SSA overpaid his benefits by $18,192.99.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that FISHER will likely serve all of the time imposed by the court. In the federal system, FISHER does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Social Security Administration - Office of Inspector General.
Ash, N.C. Man Sentenced for Federal Drug ChargesRead the Press Release
Raleigh - United States Attorney Thomas G. Walker announced that in federal court on February 27, 2013, Chief United States District Judge James C. Dever III, sentenced FREDERICK WILLIAMS, 29, of Ash, North Carolina, to 112 months imprisonment followed by 3 years supervised release.
On July 11, 2012, Williams pled guilty to six counts of distribution of a quantity of cocaine base (crack).
In a joint operation between the Brunswick County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms an agent of the government purchased a quantity of crack cocaine from Williams on six separate occasions in the Longwood area of Brunswick County North Carolina. The transactions occurred between August and October 2011. The investigation also revealed that Williams possessed a handgun.
This case was brought as a part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation entitled Buggsnatcher, investigating importers and multi-level distributors of cocaine and crack cocaine. So far 19 persons have been sentenced in federal court as a part of this OCDETF.
Investigation of this OCEDTF case is being conducted by the Bureau of Alcohol, Tobacco, and Firearms and Explosives; the North Carolina State Bureau of Investigations; the Wilmington Police Department; the New Hanover County Sheriff’s Office and the Brunswick County Sheriff’s Office. Special Assistant United States Attorney Timothy Severo represents the government. Mr. Severo is a prosecutor with the New Hanover District Attorney’s Office. District Attorney Ben David has assigned him to the United States Attorney’s office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.
Arms Seller Pleads Guilty to Illegal Export of Night Vision EquipmentRead the Press Release
Sold Night Vision Goggles and Monocular on eBayBaltimore, Maryland – Anthony J. Torresi, age 34, of Coral Gables, Florida pleaded guilty late yesterday to unlawfully exporting night vision equipment.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
“One of ICE’s Homeland Security Investigations top enforcement priorities is preventing U.S. military products and sensitive technology from falling into the hands of those who might seek to harm America or its interests,” said William Winter, special agent in charge for HSI Baltimore. “This investigation is an example of HSI’s good partnership with the U.S. Attorney’s Office in Maryland to combat this threat.”
According to his plea agreement, Torresi listed night vision goggles and night vision monoculars for sale on eBay. The items were designed to enable military ground troop personnel to conduct night operations. A license from the U.S. Department of State is required to export the items. Selling such items overseas without a license is a violation of the Arms Export Control Act.
On January 21, 2011 Torresi sold two of the night vision goggles for $7,039.99 to an undercover agent he believed to be located in New Zealand, but who was in fact located in Baltimore. Torresi exported the goggles on February 11, 2011 from Miami, Florida to New Zealand. The shipping label signed by Torresi showed the contents as a “gift” described as a “Rangefinder” valued at $70. Torresi never applied for a license to export these items.
Similarly, on March 29, 2011 Torresi sold a 6015-4 night vision monocular to the undercover agent he believed to be located in New Zealand for $6,099.89. On April 29, 2011, Torresi exported from Miami to New Zealand what he represented to be the 6015-4 night vision monocular that he sold for $6,099.98. In fact, Torresi shipped a different night vision monocular that he had purchased for $266 and which did not require a license to export.
Torresi faces a maximum sentence of 20 years in prison followed by five years of supervised release and a $1 million fine for unlawful export of arms and munitions. U.S. District Judge Ellen L. Hollander scheduled sentencing for June 21, 2013 at 2:00 p.m.
United States Attorney Rod J. Rosenstein praised HSI Baltimore and the Counterproliferation Investigations Task Force, a multi-agency task force headquartered at the offices of HSI, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Gregory Welsh, who is prosecuting the case.
Alorton Man Pleads Guilty to Firearm OffenseRead the Press Release
On February 26, 2013, Termain D. Moore, a twenty-one year old Alorton, IL, man pled guilty in Federal District Court, in East St. Louis, to Unlawful Possession of a Firearm by a Previously Convicted Felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Moore is scheduled for sentencing on June 10, 2013, at which at which time he faces a maximum potential sentence of ten years’ in prison and a fine of up to $250,000, not more than three years’ of supervised release after his prison term, and a mandatory special assessment of $100. Carter also agreed to the forfeiture of the firearm.
Court proceedings revealed that on October 12, 2012, an East St. Louis police officer sitting in his personal vehicle observed Moore walk into a liquor store in East St. Louis, raising his right arm holding a small revolver and pointing it. The officer called over the radio to report the incident and for backup. Two officers arrived on the scene as Moore was leaving the store. As one of the officers exited his vehicle, Moore took off running towards the back of the building. The officer began a foot chase, hearing a loud noise caused by something hitting the ground, as the pursuit continued. The other officers still on the scene saw Moore throw something on the ground, which was later identified as a firearm. Moore was caught and arrested. He admitted possessing the gun and that the officers saw him throw the firearm on the ground.
This case was investigated by the East St. Louis, IL, Police Department and assigned to Special Assistant United States Attorney Matthew H. Brooks for prosecution.
42 Individuals Indicted for Drug Trafficking in the Municipality of San JuanRead the Press Release
SAN JUAN, PR – On February 26, 2013, a federal grand jury indicted 42 individuals as a result of an investigation led by the Immigration and Customs Enforcement (ICE)-Homeland Security Investigations (HIS) and the Puerto Rico Police Department (PRPD), announced today United States Attorney Rosa Emilia Rodríguez-Vélez. The following agencies collaborated during the arrests: DEA, FBI, ATF, CBP, San Juan and Guaynabo Municipal Police.
The defendants are charged in a six-count indictment with conspiracy to possess with intent to distribute controlled substances in a federally protected location, conspiracy to distribute heroin, “crack” (cocaine base), cocaine, marihuana, Oxycodone, (commonly known as Percocet), and Alprazolam, (commonly known as Xanax). The object of the conspiracy was to distribute controlled substances at the Ernesto Ramos Antonini Public Housing Project and other areas nearby within the Municipality of San Juan, Puerto Rico, for significant financial gain and profit.
According to the indictment, from on or about the year 2005, the defendants conspired to possess with the intent to distribute narcotics. The main leader of the organization was Raymond Cruz-Serrano, aka “R.” He controlled and supervised the drug trafficking operations at the drug points. Cruz-Serrano was the owner of the marihuana sold at $6 and crack. He also acted as an enforcer.According to the indictment, the 42 co-conspirators had many roles, in order to further the goals of the conspiracy. These were: one leader; three managers; five drug owners; one enforcer; seven runners; 23 sellers and two lookouts.
The defendants are: [1] Raymond Cruz-Serrano A/K/A“R”; [2] Ricardo Cruz-Serrano A/K/A “Chino”; [3] Reynaldo Cruz-Robles A/K/A “Naldy”, “J”; [4] Sheila Matos-Sandoval A/K/A “Mulan”; [5] Nelson Benitez-Benitez A/K/A “Pepon”; [6] Christian De Jesús-Benitez A/K/A “7 Pies”; [7] Ángel D. Olmo-Díaz A/K/A “Pollo”; [8] Nicolas Marrero-Matos A/K/A “Nick”, “Nicky”, “Cascon”; [9] Carlos Cruz-Centeno A/K/A “Motorita”; [10] Victor Vega-Sterling A/K/A “Goliath”; [11] Luz V. Romero-Vaello A/K/A “Lucy”, “Travesti”; [12] Gustavo Baez-Castro A/K/A “De La Guetto”, “De La Guizzu”; [13] Luis J. Pizarro-Ortiz A/K/A “Negro, “Loiza”; [14] Ángel Pacheco-Rodríguez A/K/A “Pacheco”, “Viejo”; [15] José R. Levy-Díaz A/K/A “Ricardo”, “Ricardito, “Simio”, “Chorro”; [16] Willie Ray Torres-Reyes A/K/A “Tiburon”; [17] Jesús Martínez-Nieves A/K/A “Goku”, “Cocoon”; [18] Héctor L. Gonzàlez-Castro A/K/A “Chucky”, “Bla-Bla”; [19] Melvin Martínez-Santiago A/K/A “Emba”; [20] Christopher Isaac-Nieves A/K/A “Güimo”; [21] Josean Torres-Reyes A/K/A “Menor”; [22] José L. Sànchez-Ortiz A/K/A “Martillo”; [23] Ian E. Huertas-Santiago A/K/A “Clark”; [24] Rafael Vàzquez-Nieves A/K/A “Nene”; [25] Jordan Martínez-Santiago A/K/A “Yoyo”; [26] Juan Morales-Vàzquez A/K/A “Dino”; [27] Victor N. López A/K/A “Nano”; [28] David Baez-García A/K/A “Blower”; [29] Joel Hernàndez-Nieves A/K/A “Casper”; [30] Jaime Salgado-Pabon A/K/A “Gringo”; [31] Wilfredo Jiménez-Torres A/K/A “Arcangel”, Wilfre; [32] Samuel Hernàndez-Nieves A/K/A “Sammy”; [33] Luis O. Martínez-Nieves A/K/A “Pooh”; [34] Alberto De Jesús-Santiago A/K/A “Carlitos”; [35] Jervesh Alvarado-Ortiz; [36] Luis Rodríguez-Dàvila A/K/A “Gordo”, “Lagrima”; [37] Daniel Duran-Cruz A/K/A “Danny”; [38] Juan Medina-López A/K/A “Juano”; [39] Antonio J. Rivera-Serrano A/K/A “Blanquito”; [40] Ruben E. Castillo-Colón A/K/A “Indi”; [41] Eric Benitez-Fernàndez; and [42] Erick R. Negrón-Colón A/K/A “Cuca”.
It was further part of the manner and means of the conspiracy that the co-conspirators would conduct drug transactions in the presence of minors and would use and employ juveniles under the age of 18, to distribute narcotics at the drug distribution points located within the housing project. It was further part of the manner and means of the conspiracy that some members of the drug trafficking organization would routinely possess, carry, brandish and use firearms to protect themselves and their drug trafficking organization. Twenty-one members of the drug trafficking organization are facing one count for using and carrying firearms during and in relation to a drug trafficking crime.
“This investigation and today’s arrests have dismantled a violent criminal organization dedicated to polluting our neighborhoods with drugs,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “These arrests demonstrate the Justice Department’s commitment to hold ruthless drug traffickers responsible for selling narcotics in our communities. Along with our law enforcement partners, we will continue to bring these drug organizations to justice for the damage they inflict on our communities.”
“These arrests show HSI’s resolve to attack and dismantle the street gangs that are threatening and terrorizing our neighborhoods with violence,” said Ángel Meléndez, acting special agent in charge of HSI San Juan. “Nobody deserves to live in a community of violence and fear inflicted by unscrupulous gang members who have no respect for human life. Members of these gangs are institutionally involved in crime and so are their organizations. Through Operation Caribbean Resilience, HSI will continue to conduct aggressive enforcement actions against members and associates of violent gangs in an effort to return to the citizens in Puerto Rico the peace and safety they deserve.”
This case is being prosecuted by Assistant United States Attorney César Rivera-Giraud.
If convicted, the defendants face a minimum of ten (10) years imprisonment and a maximum of life imprisonment, with fines of up to $10 million. Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
15 Individuals Charged with Fraud for Filing False Claims Relating to the Deepwater Horizon Oil Rig Explosion Totaling over $300,000Read the Press Release
United States Attorney Dana J. Boente announced the filing of fourteen Bills of Information and one Indictment bringing felony charges against 15 individuals for filing fraudulent applications for relief relating to an April 20, 2010 explosion and fire which occurred on the Deepwater Horizon, an oil rig in the Gulf of Mexico where British Petroleum (BP) had been drilling a well. After the disaster, BP established the Gulf Coast Claims Facility (GCCF) to administer, mediate, and settle claims of individuals and businesses for losses incurred as a result of the Deepwater Horizon incident. The GCCF began receiving and processing such claims in August 2010. The GCCF required any individual filing a claim to submit valid documentation as proof of loss or reduction in earnings due to the oil spill. Detailed below are the charges against the 15 individuals who were charged with submitting fraudulent claims. The loss to BP from the fraudulent claims totals $309,990 from these individuals.
TYARIANA SCOTT, age 36, of New Orleans, Louisiana, Conspiracy to Commit Wire Fraud
The Bill of Information alleges that on October 16, 2010, the GCCF received SCOTT’S online claim form seeking an emergency six-month payment in the amount of $17,500, wherein SCOTT falsely stated she lost earnings as a result of the Deepwater Horizon oil spill. Documentation in support of SCOTT’S claim included copies of fraudulent W-2 wage statements and pay stubs indicating that prior to the oil spill, SCOTT had worked as a hotel supervisor earning $48,251 annually, when in fact she had not. SCOTT received approximately $17,500. This case is being prosecuted by Assistant U. S. Attorney Irene Gonzalez.TRACEY DANIELS, age 49 of New Orleans, Louisiana, Conspiracy to Commit Wire Fraud
The Bill of Information alleges that on October 28, 2010, the GCCF received DANIELS’ online claim form seeking an emergency six-month payment in the amount of $33,450, wherein DANIELS falsely stated she lost earnings as a result of the Deepwater Horizon oil spill. Documentation in support of DANIELS’ claim included copies of fraudulent W-2 wage statements and pay stubs indicating that prior to the oil spill, DANIELS had worked as a restaurant manager earning $54,651.99 annually, when in fact she had not. DANIELS received approximately $32,100. This case is being prosecuted by Assistant U. S. Attorney Irene Gonzalez.SHANEL DANYELL BURTON, age 33 of River Ridge, Louisiana, Conspiracy to Commit Wire Fraud
The Bill of Information alleges that on October 13, 2010, the GCCF received BURTON’S online claim form seeking an emergency six-month payment in the amount of $19,586, wherein BURTON falsely stated she lost earnings as a result of the Deepwater Horizon oil spill. Documentation in support of BURTON’S claim included copies of fraudulent W-2 wage statements and pay stubs indicating that prior to the oil spill, BURTON had worked as a restaurant supervisor earning $47,820 annually when, in fact, she was never so employed. BURTON received approximately $19,600. This case is being prosecuted by Assistant U. S. Attorney Irene Gonzalez.TROY TOLEDANO, age 51 of Grand Prairie, Texas, Conspiracy to Commit Wire Fraud
The Bill of Information alleges that on October 16, 2010, the GCCF received TOLEDANO’S online claim form seeking an emergency six-month payment in the amount of $23,900, wherein TOLEDANO falsely stated he lost earnings as a result of the Deepwater Horizon oil spill. Documentation in support of TOLEDANO’S claim included copies of fraudulent W-2 wage statements and pay stubs indicating that prior to the oil spill, TOLEDANO had worked as a hotel supervisor earning approximately $47,000 annually when, in fact, he was never so employed. TOLEDANO received approximately $23,900. This case is being prosecuted by Assistant U. S. Attorney Irene Gonzalez.RANELL BOYD, age 51 of Harvey, Louisiana, Conspiracy to Commit Wire Fraud
The Bill of Information alleges that on November 8, 2010, the GCCF received BOYD’S online claim form seeking an emergency six-month payment in the amount of $26,100, wherein BOYD falsely stated she lost earnings as a result of the Deepwater Horizon oil spill. Documentation in support of BOYD’S claim included copies of fraudulent W-2 wage statements and pay stubs indicating that prior to the oil spill, BOYD had worked as a hotel manager earning $49,618 annually, when in fact she was not so employed. BOYD received approximately $26,100. This case is being prosecuted by Assistant U. S. Attorney Irene Gonzalez.ODNEY BRIMMER, age 32 of New Orleans, Louisiana, Conspiracy to Commit Mail Fraud
The Bill of Information alleges that on November 17, 2010, the GCCF received BRIMMER’S online claim form seeking an emergency six-month payment in the amount of $23,150, wherein BRIMMER falsely stated he lost earnings as a result of the Deepwater Horizon oil spill. Documentation in support of BRIMMER’S claim included copies of fraudulent W-2 wage statements and pay stubs indicating that prior to the oil spill, BRIMMER had worked as a hotel supervisor earning approximately $43,000 annually when, in fact, he was never so employed. BRIMMER received approximately $23,200. This case is being prosecuted by Assistant U. S. Attorney Irene Gonzalez.TIRON KELLEY, age 49 of New Orleans, Louisiana, Conspiracy to Commit Wire Fraud
The Bill of Information alleges that on October 18, 2010, the GCCF received KELLEY’S online claim form seeking an emergency six-month payment in the amount of $18,500, wherein KELLEY falsely stated he lost earnings as a result of the Deepwater Horizon oil spill. Documentation in support of KELLEY’S claim included copies of fraudulent W-2 wage statements and pay stubs indicating that prior to the oil spill, KELLEY had worked as a grocery manager earning approximately $45,000 annually, when in fact he had not. KELLEY received approximately $15,100. This case is being prosecuted by Assistant U. S. Attorney Irene Gonzalez.ARIN JONES, age 31 of New Orleans, Louisiana, Conspiracy to Commit Wire Fraud
The Bill of Information alleges that on October 16, 2010, the GCCF received JONES’ online claim form seeking an emergency six-month payment in the amount of $26,800, wherein JONES falsely stated she lost earnings as a result of the Deepwater Horizon oil spill. Documentation in support of JONES’ claim included copies of fraudulent W-2 wage statements and pay stubs indicating that prior to the oil spill, JONES had worked as a hotel supervisor earning approximately $50,000 annually when, in fact, she was never so employed. JONES received approximately $26,800. This case is being prosecuted by Assistant U. S. Attorney Irene Gonzalez.ROBIN HAYES, age 41 of New Orleans, Louisiana, Conspiracy to Commit Wire Fraud
The Bill of Information alleges that on October 19, 2010, the GCCF received HAYES’ online claim form seeking an emergency six-month payment in the amount of $21,300, wherein HAYES falsely stated she lost earnings as a result of the Deepwater Horizon oil spill. Documentation in support of HAYES’ claim included copies of fraudulent W-2 wage statements and pay stubs indicating that prior to the oil spill, HAYES had worked as a hotel manager earning approximately $46,000 annually, when in fact she was not so employed. HAYES received approximately $21,300. This case is being prosecuted by Assistant U. S. Attorney Irene Gonzalez.ROY R. PARKER, age 55 of New Orleans, Louisiana, Conspiracy to Commit Wire Fraud
The Bill of Information alleges that on September 30, 2010, the GCCF received PARKER’S online claim form seeking an emergency six-month payment, wherein PARKER falsely stated he lost earnings as a result of the Deepwater Horizon oil spill. PARKER had worked as the head houseman at a hotel earning approximately $35,000 annually. Documentation in support of PARKER’S claim included a letter purporting to be from his employer falsely stating that PARKER’S wages and hours were reduced as a result of the oil spill. In fact, PARKER’S wages and hours were never reduced, as a result of the oil spill. PARKER received approximately $13,890. This case is being prosecuted by Assistant U. S. Attorney Irene Gonzalez.BENJAMIN BENNETT, age 23 of New Orleans, Louisiana, Wire Fraud
The Bill of Information alleges that on October 12, 2010 BENNETT submitted a fraudulent 2009 Schedule C, Form 1040 federal tax return, showing that he operated a commercial fishing business in 2009 which was profitable. Additionally, he submitted other documentation indicating the defendant operated a commercial fishing business in Venice, Louisiana before the Deepwater Horizon oil spill. However, defendant really worked as a barber in New Orleans, Louisiana before the oil spill. BENNETT received approximately $43,400. This case is being prosecuted by Assistant U. S. Attorney Julia Evans.PIERRE WILBOURN, age 40 of Kenner, Louisiana, Mail Fraud
The Bill of Information alleges that on October 4, 2010 WILBOURN submitted a fraudulent 2009 Schedule C, Form 1040 federal tax return, showing that he operated a commercial fishing business in 2009 which was profitable. Additionally, he submitted or caused to be submitted other documentation indicating the defendant operated a commercial fishing business in Venice, Louisiana before the Deepwater Horizon oil spill. However, the defendant was really employed doing concrete work before and after the oil spill. WILBOURN received approximately $20,000. This case is being prosecuted by Assistant U. S. Attorney Julia Evans.KEISHANDRA HOUSTON, age 36 of New Orleans, Louisiana, Wire Fraud
The Bill of Information alleges that in September 30, 2010 HOUSTON submitted a fraudulent claim to the GCCF for lost earnings in the amount of $8,640. HOUSTON falsely represented that she worked as a cook at a seafood restaurant and suffered financially due to lost employment as a result of the Deepwater Horizon incident. HOUSTON created two false earnings statements which incorrectly indicated that the she was employed by a seafood restaurant. HOUSTON received approximately $5,900. This case is being prosecuted by Assistant U. S. Attorney Chandra Menon.RACHELL THOMAS, age 36 of Slidell, Louisiana, Conspiracy to Commit Wire Fraud
The Bill of Information alleges that in or about September 2010 and continuing until in or about October 2010, THOMAS, agreed with other individuals to make false claims to the GCCF for lost earnings. At the direction of THOMAS, the other individuals provided THOMAS with claim forms in which they falsely claimed to work for seafood restaurants and to have suffered financially through lost employment as a result of the Deepwater Horizon incident. THOMAS completed a claim form for herself with the same false representation. THOMAS created false earnings statements from a fictitious restaurant and wrote letters from a fictitious supervisor of the restaurant. THOMAS transmitted approximately twenty-three claims. Each claim included a claim form, a falsified earnings statement, and a falsified letter. THOMAS and six other individuals each submitted a follow-up claim for additional funds. On November, 24, 2010, the GCCF paid THOMAS approximately $8,000 as a result of her false claim. This case is being prosecuted by Assistant U. S. Attorney Chandra Menon.ALICIA WELLS, age 29 of New Orleans, Louisiana, Mail Fraud
According to the indictment returned by a Grand Jury sitting in New Orleans, on September 25, 2010 the defendant submitted an application to the GCCF seeking compensation for loss of earnings resulting from the Deepwater Horizon oil spill by falsely and fraudulently stating that she was a line cook a local restaurant before the oil spill, when in fact, she had never worked for the business. WELLS received approximately $13,200 as a result of her fraudulent filings. This case is being prosecuted by Assistant U. S. Attorney Loan “Mimi” Nguyen.U.S. Attorney Boente reiterated that the Indictment and Bills of Information are merely charges and that the guilt of each defendant must be proven beyond a reasonable doubt.
The cases are being investigated by the United States Secret Service, Federal Bureau of Investigation and the United States Postal Inspection Service. The cases were referred to the agencies by the National Center for Disaster Fraud located in Baton Rouge, Louisiana. Assistant U. S. Attorney Carter K. D. Guice, Jr. is the Disaster Fraud Coordinator for the Eastern District of Louisiana.
Members of the public can report fraud, waste, abuse or allegations of mismanagement involving disaster relief operations through the National Center for Disaster Fraud (NCDF) Disaster Fraud Hotline at 877-NCDF-GCF (623-3423), the Disaster Fraud Fax at 225-334-4707 or the Disaster Fraud e-mail at [email protected]. Individuals can also report criminal activity to the FBI at 1-800-CALL-FBI.(Download Indictment - Alicia Wells )
(Download Bill of Information - Rachell Thomas )
(Download Bill of Information - Pierre Wilbourn )
(Download Bill of Information - Benjamin Bennett )
(Download Bill of Information - Roy Parker )
(Download Bill of Information - Robin Hayes )
(Download Bill of Information - Arin Jones )
(Download Bill of Information - Tiron Kelley )
(Download Bill of Information - Odney Brimmer )
(Download Bill of Information - Ranell Boyd )
(Download Bill of Information - Troy Toledano )
(Download Bill of Information - Shanel Burton )
(Download Bill of Information - Tracey Daniels )
(Download Bill of Information - Tyariana Scott )
(Download Bill of Information - Keishandra Houston )
Wednesday 27 February 2013
Western District of Louisiana Celebrates Black History Month in Shreveport and Lafayette Offices and at Community ProgramsRead the Press Release
Lafayette/Shreveport/Lake Charles/Alexandria/Monroe, La: The U.S. Attorney’s Office for the Western District of Louisiana recognized Black History Month with programs in their Shreveport and Lafayette offices and other community events. These celebrations included recognizing the culture, social, scientific and political contributions of African- Americans. Black History Month grew out of “Negro History Week,” the brainchild of noted historian Carter G. Woodson and other prominent African Americans. Since 1976, every U.S. president has officially designated the month of February as Black History Month.
The theme for the U.S. Attorney’s Office programs was “At the Crossroads of Freedom and Equality: The Emancipation Proclamation and the March on Washington.” This year’s theme marks the sesquicentennial of the Emancipation Proclamation and the 50 anniversary of the th March on Washington. The events provided a chance to look back on the crossroads of the country’s journey, to reflect upon freedom and equality, and to recognize pivotal movements forged by extraordinary individuals in the struggle to dismantle institutions of slavery and segregation in America.
The 2013 Black History Month Committee for the U.S. Attorneys Office organized events held in Shreveport on Feb. 19, 2013 at the U.S. Federal Courthouse and in Lafayette on Feb. 21, 2013 at the John M. Shaw Federal Courthouse Building. Each program featured guest speakers, including U.S. District Judges, a U.S. Court of Appeals, Fifth Circuit Chief Judge, attorneys, local pastors, professors, singers, storytellers and authors. Members of the local bar associations, community and federal agencies turned out for both programs to celebrate the month.
In Shreveport, the Honorable S. Maurice Hicks Jr., U.S. District Judge, Western District of Louisiana, welcomed the crowd and led the audience in the pledge of allegiance; the invocation was given by Rev. Antonio T. Dixon Sr., Pastor, Steeple Chase Baptist Church in Shreveport; and the occasion was recognized by the Honorable Carl Stewart, Chief Judge, U.S. Court of Appeals, Fifth Circuit.
A dramatic performance about the life of Harriet Tubman was given by Thelma Harrison, a professional storyteller and actress. Courtney Joiner, an Assistant U.S. Attorney, introduced the keynote speaker, Dr. Harry Blake, Pastor, Mount Canaan Baptist Church in Shreveport, who shared his experience about growing up on a plantation as a young boy and his role as a civil rights activist on the staff of Martin Luther King, Jr. The program concluded with a vocal performance of “Swing Low Sweet Chariot” by playwright, producer and singer Vincent Williams.
The director of the Multicultural Center of the South, Janice Gatlin, provided an array of exhibits depicting the culture of black history. The Multicultural Center is located in Shreveport and is the only multicultural center in the State of Louisiana with over 2,000 cultural exhibits representing 26 cultures.
The Lafayette program included opening remarks from the Honorable Rebecca F. Doherty and reflections by the Honorable Richard T. Haik, U.S. District Judges for the Western District of Louisiana. Rev. Chester Arceneaux, Pastor of The Cathedral of St. John the Evangelist in Lafayette, gave the invocation, followed by Willie Leday, Chief Probation Officer for the U.S. District Court, Western District of Louisiana, who recognized the occasion.
Sherry T. Broussard, author and professional storyteller, told stories highlighting the achievements of various African Americans. Karen J. King, an Assistant U. S. Attorney, was the Mistress of Ceremonies for both the Shreveport and Lafayette events. Keynote speaker for the Lafayette celebration was Albert Samuels, Ph. D., professor and chair of the Department of Political Science and Geography at Southern University in Baton Rouge. The Lafayette program concluded with “His Eye Is on the Sparrow,” being performed by Sa’Rah Hamm, singer and student at the University of Louisiana at Lafayette. United
States Attorney Stephanie A. Finley gave closing remarks for both programs.On Sunday, Feb. 24, 2013, U.S. Attorney Finley was the guest speaker at the African American Black History Program held at the Redeemer Lutheran Church in Alexandria, La. The theme for the program was “Honoring The Past - Inspiring the Future.” It was the first time the church had such a program. Ms. Finley spoke to the congregation about the importance of the role that we all play in embracing the diverse and rich history of our nation.
The congregation of Steeple Chase Baptist Church in Shreveport, La. was addressed by Assistant U.S. Attorney Earl M. Campbell, on Feb. 24, 2013, who spoke on the accomplishments and achievements of African Americans in the United States and how African American history is intertwined with American History. The programs’s theme was “At the Crossroads of Freedom and Equality.”
“Our programs saluted the extraordinary contributions that generations of African Americans have made in shaping, securing and strengthening the United States,” Finley said. “Our goal was to commemorate the historic events and provide a glimpse of the past. I would like to thank all who participated and attended this year’s programs and would like to commend the 2013 Black History Month Committee for putting together two informative and entertaining programs. This nation is a great and diverse country which has a rich history that includes people of all backgrounds, races and faith.”
West Suburban Man Convicted of Federal Gun ChargeRead the Press Release
CHICAGO – An Addison man was convicted today by a federal jury of being a felon-inpossession of a firearm. The defendant, MARIO J. RAINONE, was found guilty following a two-day trial. The jury was empaneled on Monday before U.S. District Judge Harry Leinenweber in Federal Court.
Rainone, 58, who was arrested in February 2009, remains in federal custody pending sentencing, which Judge Leinenweber scheduled for June 5. Based on Rainone’s status as an Armed Career Criminal under federal law, the offense carries a mandatory minimum of 15 years and a maximum of life in prison. Rainone also faces a maximum fine of $250,000. The Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
Rainone was arrested by Addison police on state charges on February 12, 2009. A state search warrant was executed the next day at an apartment where Rainone was staying in the 1200 block of West Lake Street in the western suburb. A Smith & Wesson Model 19-3 .357 caliber revolver, along with personal papers and other belongings, were found in the nightstand in the bedroom used by Rainone, resulting in the federal firearms charge. The gun was stolen in October 2008, according to the original owner, who testified at trial.
A stipulation was entered at the trial that Rainone has a prior felony conviction. Federal law prohibits a convicted felon from possessing any firearm affecting interstate commerce.
The government was represented by Assistant U.S. Attorneys Amarjeet Bhachu and Michael Donovan. The verdict was announced Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and the Addison Police Department.
Two Minneapolis Women Sentenced for Stealing More Than $1 Million from the ING CompanyRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, two Minneapolis women were sentenced for stealing more than $1 million from the ING life insurance company. United States District Court Judge Susan Richard Nelson sentenced Angela Patrice Madison, age 42, to 35 months in federal prison on one count of aiding and abetting mail fraud; and Tracy Dione Jackson, age 42, was sentenced to 27 months in federal prison on the same charge. Madison also was ordered to pay $1,633,301 in restitution to ING, while Jackson was ordered to pay $1,112,717 to the company. Both women were charged on July 26, 2012.
In her plea agreement, which was filed on September 27, 2012, Madison admitted that from 2003 through March 6, 2012, she worked as a policy plan and service coordinator for ING. In that capacity, she handled, among other things, requests from ING clients to obtain loans and “surrender”—that is, cash in—their life insurance policies. Madison used ING’s computer system to generate false “surrenders” in the names of various individuals, including Jackson. The checks issued as a result of those surrenders were mailed to Jackson at various addresses across the state or intercepted by Madison and given to Jackson. Jackson then cashed the checks and split the proceeds with Madison. Through this scheme, the women stole approximately $1,633,301 from ING, the result of 196 fraudulent checks. Jackson pleaded guilty on August 28, 2012.
This case was the result of an investigation by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Timothy C. Rank.Two Men Charged for Methamphetamine Trafficking and Gun OffensesRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces the return of an indictment charging Emir Peron (31,Seffner) and Roger Gary Driggers (60, Lakeland) with conspiracy to distribute 50 grams or more of methamphetamine. Peron also faces three counts of possession of a firearm in furtherance of a drug trafficking crime. If convicted on all counts, Peron and Driggers each face a maximum penalty of life in federal prison. If convicted, Peron also faces a mandatory minimum penalty of 55 years in federal prison on each of the firearm counts. The indictment also notifies Peron that the United States intends to forfeit six firearms which were seized during the course of the investigation. Peron and Driggers were indicted on February 13, 2013. The arraignment hearing was held today.
According to the indictment, from an unknown date and continuing until approximately January 29, 2013, in Hillsborough County, Peron and Driggers conspired with each other and others to distribute and possess with intent to distribute 50 grams or more of methamphetamine. According to a criminal complaint filed earlier in the case, Peron also sold guns to an undercover agent, including a Saiga semi-automatic assault rifle, an M-11 9mm semi-automatic pistol, and a .357 magnum revolver, in addition to quantities of crystal methamphetamine.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Drug Enforcement Administration (DEA), and the Hillsborough County Sheriff's Office. It will be prosecuted by Assistant United States Attorney Patrick Scruggs.
Two Eagle Butte Men and A Woman Charged with Distribution of A Controlled Substance and Possession with Intent to DistributeRead the Press Release
United States Attorney Brendan V. Johnson announced that two men and one woman from Eagle Butte, South Dakota have been indicted by a federal grand jury.
Lena Flying By, age 45; Terry Flying By, age 50; and Earl Grindstone, age 28, were indicted by a federal grand jury on February 13, 2013 for Distribution of a Controlled Substance and Possession with Intent to Distribute a Controlled Substance. They appeared before U.S. Magistrate Judge Mark A. Moreno on February 20, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is not more than 5 years of imprisonment, a $250,000 fine, or both; a mandatory 2 years of supervised release and an additional year of supervised release upon revocation. Restitution and a $100 each special assessment may also be ordered. The charges are merely accusations, and the defendants are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force and the Cheyenne River Sioux Tribe Law Enforcement. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case. Defendants were released on bond pending trial. A trial date has not been set.
Two Admit Mortgage Fraud Conspiracy and Money LaunderingRead the Press Release
CAMDEN, N.J. – A former property manager admitted today to conspiring to defraud financial institutions and launder stolen funds as part of a $15 million mortgage fraud scam that used phony documents and “straw buyers” to make illegal profits on overbuilt condos, U.S. Attorney Paul J. Fishman announced.
Last week, a Georgia man also admitted to conspiring to defraud financial institutions and launder stolen funds as part of the same scam.
Timothy Ricks, 45, of East Orange, N.J., pleaded guilty today to a Superseding Indictment charging him with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. Orlando Allen, 47, of Fayetteville, Ga., pleaded guilty to the same crimes on Feb. 20, 2013. Both Ricks and Allen entered their guilty pleas before U.S. District Judge Jerome B. Simandle in Camden federal court.
According to documents filed in this case and statements made in court:
Ricks and Allen were among 11 defendants arrested in July 2012 and charged with conspiracy to commit wire fraud and conspiracy to commit money laundering. Ricks and his conspirators located oceanfront condominiums overbuilt by financially distressed developers and negotiated a buyout price with the sellers. They then caused the sales prices for the properties – located in Wildwood Crest and North Wildwood, N.J., other locations in New Jersey and in Naples, Fla. – to be much higher than the buyout price to ensure large proceeds. Other defendants helped conceal the true sales prices of certain properties through inflated sales contracts and sale and finder’s fee agreements.
Ricks and Allen recruited straw buyers to purchase those properties at the inflated rates. The straw buyers had good credit scores but lacked the financial resources to qualify for mortgage loans. The conspirators created false documents, such as fake W-2 forms, pay stubs, bank statements and investment statements, to make the straw buyers appear more creditworthy than they actually were in order to induce the lenders to make the loans.
Ricks and his conspirators caused fraudulent mortgage loan applications in the name of the straw buyers, including the supporting documents, to be submitted to mortgage brokers that the brokers knew were false. Once the loans were approved and the mortgage lenders sent the loan proceeds in connection with real estate closings, Ricks and his conspirators took a portion of the proceeds, having funds wired or checks deposited into various accounts they controlled. They also distributed a portion of the proceeds to other members of the conspiracy for their respective roles.
The wire fraud conspiracy charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. The money laundering conspiracy charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Ricks’ sentencing is scheduled for Nov. 8, 2013. Allen is scheduled to be sentenced Aug. 8, 2013.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez in Newark; and IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen, Newark field office, for their roles in the ongoing investigation.
The government is represented by Assistant U.S. Attorney Matthew T. Smith and Attorney in Charge R. Stephen Stigall of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel:
Ricks: Joshua Markowitz Esq., Princeton, N.J.
Allen: Nace Naumoski Esq., Roseland, N.J.Ricks, Timothy et al. Superseding Indictment
Three People Sentenced in Connection with Aryan Knights CaseRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced today that three individuals charged in connection with the Aryan Knights investigation were sentenced in United States District Court in Boise this week. The three sentences are the first to occur out of 23 separate individuals charged in the investigation.
Rory Vincent Palma, 38, of Tempe, Arizona, was sentenced to 41 months in prison followed by three years of supervised release for unlawful possession of a firearm. Palma, who has three prior felony convictions, and has twice previously been convicted of unlawful possession of a firearm, sold a shotgun to a confidential informant. Palma pleaded guilty to the charge on October 30, 2012.
Joshua Trent, 32, of Boise, Idaho, was sentenced to 51 months in prison followed by three years of supervised release for possessing an unregistered firearm. Trent pleaded guilty to the charge on November 19, 2012. Trent admitted that on May 7, 2012, he was in possession of two sawed-off shotguns, which he then sold to a confidential informant. Trent was also prohibited from possessing the shotguns because he was previously convicted of the felony crime of aggravated assault in 2000.
Christina Massie, 35, of Boise, was sentenced to 30 months followed by three years of supervised release for unlawful possession of a firearm. Massie pleaded guilty to the charge on December 5, 2012. Massie admitted that she assisted co-defendant Joshua Trent in the sale of two sawed-off shotguns to a confidential informant. Massie was prohibited from possessing firearms because she was previously convicted of two felony crimes for controlled substance violations.
These three defendants were among 23 people charged as a result of a long term investigation by the Treasure Valley Metro Violent Crimes Task Force. The investigation began when the task force focused on illegal drug distribution by the “Aryan Knights,” a gang active both in prison and on the streets throughout Idaho. Through the investigation, law enforcement agents identified Aryan Knights gang members who were trafficking methamphetamine, as well as associates of the gang who were the source of that methamphetamine.
Of the 23 individuals charged, 16 have pleaded guilty, two have signed plea agreements but not yet entered guilty pleas, and five are still set for trial.
The joint investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF) included the cooperative law enforcement efforts of the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service. The Twin Falls Police Department, Twin Falls Sheriff’s Office, Idaho State Police, and District 3 Probation and Parole also participated in the investigation.
The Palma case is being prosecuted by Assistant U.S. Attorney Christian Nafzger; Trent and Massie are being prosecuted by Christopher Atwood, the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Stock Manipulators Sentenced in Texas to Prison<br /> for $1 Million Securities Fraud SchemeRead the Press Release
An employee of a Texas securities firm and a broker-dealer who conspired with him and others to artificially pump up the stock prices of several publicly traded companies were sentenced to prison terms today for their roles in the $1 million scheme, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and Assistant Director in Charge of the FBI’s Washington Field Office Valerie Parlave.
Blake Williams, 30, of Dallas, and Derek Lopez, 46, of Torrance, Calif., were sentenced to 32 and 24 months in prison, respectively. U.S. District Judge Ed Kinkeade imposed the sentences today in Dallas federal court. In addition to the prison terms, Williams was ordered to forfeit $125,000; Lopez was ordered to forfeit $72,442; and the pair was sentenced to serve two years of supervised release. Each defendant previously pleaded guilty to one count of conspiracy and one count of securities fraud.
Williams was an employee of TBeck Capital Inc., a purported investment banking and securities trading firm in Grapevine, Texas. Lopez was a securities broker-dealer who provided services to TBeck Capital. According to court documents, from June 2006 through December 2008, Williams, Lopez and their co-conspirators engaged in a scheme to manipulate the price and volume of stocks traded in the over-the-counter market.
According to court documents, companies owned and controlled by a co-conspirator obtained control of large positions of free-trading stock in various publicly traded companies. Williams, Lopez and others then coordinated trades with each other and with other alleged co-conspirators to create the false appearance of greater investor interest in the stock. Williams and Lopez admitted to trading stock in their own names as well as through TBeck Capital and other companies to keep the stock price artificially inflated. These actions allowed the defendants and their alleged co-conspirators to then sell that stock at an artificially high price.
Specifically, Lopez admitted to trading in his own name, as well as in the name “Da Big Kahuna” to disguise his trades. Williams admitted to trading in the names of several companies to make it appear there were multiple unrelated entities buying and selling the stock. According to court documents, Williams received cash payments and Lopez received free-trading stock and cash payments in return for their assistance in manipulating the stock prices of companies in which TBeck Capital owned and controlled large positions of free-trading stock.
The gain to all the co-conspirators from the fraudulent scheme exceeded $1 million, according to court documents.
The case is being prosecuted by Senior Trial Attorney Nicholas Acker and Trial Attorney Luke B. Marsh of the Criminal Division’s Fraud Section and is being investigated by the FBI’s Washington Field Office. The U.S. Attorney’s Office for the Northern District of Texas provided valuable assistance.
This case was prosecuted in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
St. Francis Woman Pleads Guilty to Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that Mary Jo Flammond, a/k/a Mary Jo Waln, age 32, of St. Francis, South Dakota appeared before U.S. District Judge Roberto A. Lange on February 21, 2013 and pled guilty to Involuntary Manslaughter. The maximum penalty upon conviction is 8 years in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 special assessment.
The conviction stems from an incident that took place on September 6, 2012, when Flammond was driving a motor vehicle under the influence of alcohol. Flammond was driving recklessly and could not keep the vehicle on the roadway which caused it to roll. The victim died from his injuries sustained in the crash. Flammond’s blood alcohol content at the time of the wreck was .191.
The investigation was conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Tim Maher.
A presentence investigation was ordered. A sentencing date has not been set. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
St. Francis Woman Indicted for Assault and Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota woman has been indicted by a federal grand jury for Assault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury and Child Abuse.
Racine Whirlwind Soldier, age 28, was indicted by a federal grand jury on February 13, 2013. She appeared before U.S. Magistrate Judge Mark A. Moreno on February 22, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to 10 years’ in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 Special Assessment. Restitution may also be ordered.
The charge is merely an accusation and Whirlwind Soldier is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
Whirlwind Soldier was released to a third party custodian pending trial. A trial date has not been set.
St. Francis Man Sentenced for Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota man convicted of Involuntary Manslaughter was sentenced on February 20, 2013 by U.S. District Judge Roberto A. Lange. Thomas Hacker Sr., age 50, was sentenced to 30 months in custody, 1 year of supervised release, and a $100 special assessment to the Victim Assistance Fund.
Hacker was indicted by a federal grand jury on September 19, 2012 and pled guilty to the charge on November 26, 2012.
The conviction stems from an incident that took place on August 25, 2012, when Hacker was driving a motor vehicle under the influence of alcohol. Hacker's vehicle left the roadway traveling onto the shoulder of the road. Hacker decelerated as he came out of the shoulder and struck the victim who was walking along the edge of the road. The victim died from injuries sustained in the crash. Hacker's blood alcohol level was determined to be .255 at the time of the crash.
The investigation was conducted by the Federal Bureau of Investigation and Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
Hacker was remanded to the custody of the U.S. Marshal.
Springfield Man Sentenced for Illegally Possessing AmmunitionRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man has been sentenced in federal court for illegally possessing ammunition.
Tony L. Friend, 45, of Springfield, was sentenced by U.S. District Judge Richard E. Dorr on Tuesday, Feb. 26, 2013 to four years and nine months in federal prison without parole.
On Sept. 12, 2012 Friend pleaded guilty to being a felon in possession of ammunition. Law enforcement officers, who identified Friend during an investigation into the deaths of Russell and Rebecca Porter of Willard, Mo., seized three shotgun shells when they executed a search warrant at Friend’s residence on May 23, 2012.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Friend has prior felony convictions for unlawful use of a weapon and domestic assault.
This case is being prosecuted by Assistant U.S. Attorney Gary Milligan. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greene County, Mo., Sheriff’s Department.
South Carolina Man Charged with Threatening to Kill the President of the United StatesRead the Press Release
Defendant Also Traveled to Georgia to Buy Firearms
While Under Indictment in South CarolinaATLANTA - Patrick Randell McIntosh, 28, of Charleston, South Carolina, was arraigned today before United States Judge Linda T. Walker, on charges of possessing three firearms and ammunition while under indictment for a felony, and for threatening the life of the President of the United States on Facebook.
“McIntosh is charged with making violent and disturbing threats online and via email to several people, including a threat to the life of the President of the United States,” said United States Attorney Sally Quillian Yates. “Many state, local and federal law enforcement agencies have worked together to bring this potentially dangerous man into custody to protect the citizens of the United States.”
According to United States Attorney Yates, the charges and other information presented in court, McIntosh posted on his Facebook page his intention to shoot patrons at a local Atlanta lounge and to kill the President of the United States. After posting the various threats, the defendant purchased three firearms from individuals who advertised weapons for sale.
McIntosh also threatened a woman in the Atlanta area. The woman reported to Gwinnett County authorities that McIntosh was stalking her. She gave police the location of a hotel where McIntosh was staying. Law enforcement officers subsequently arrested McIntosh at the location and recovered guns and ammunition in his possession.
“With the increased use of the various forms of social media comes increased online threats that vary in nature,” said Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. “The FBI, as well as law enforcement as a whole, takes such online based threats seriously and they can easily evolve into federal criminal charges for those individuals making them.”
“Threats against the President of the United States and others we are statutorily authorized to protect are the Secret Service’s number one investigative priority. Every threat, no matter if made by telephone, in person, in writing, or on social media is examined to the fullest extent possible. Working with our partners in law enforcement and the U.S. Attorney’s Office we will continually seek to bring those who make threats to justice,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
“I’m proud of the Atlanta Police Department’s active participation in the investigation that led to the removal of this dangerous individual off of the streets,” said Atlanta Police Chief George N. Turner. “This arrest and indictment underscores the importance of solid relationships with our local, state and federal law enforcement partners. We’re all safer today as a result of this cooperation.”
McIntosh was indicted by a federal grand jury in Atlanta on January 15, 2013, and charged with illegally possessing three firearms and a large amount of ammunition while under indictment for a felony offense, and for threatening the President. He had been released on state bond after being indicted in the state of South Carolina for felony stalking.McIntosh faces a maximum possible sentence of five years in prison on the firearms charge, and ten years in prison on the threat charge. McIntosh could be also be fined up to $250,000.00 on each charge. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding on the Court but provide appropriate sentencing ranges for most offenders.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government's burden to prove the defendant's guilt beyond a reasonable doubt at trial.
This case is being investigated by the Joint Terrorism Task Force (“JTTF”), which includes agents with the Federal Bureau of Investigation, the United States Secret Service, and the Federal Air Marshal Service. The threat was initially investigated by detectives of the Atlanta Police Department and subsequently referred to the JTTF.
Assistant United States Attorney Katherine M. Hoffer is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.