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Monday 25 February 2013
Coral Springs Firefighter Pleads Guilty to Armed Drug TraffickingRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, announced that Santiago Gonzalez, of Coral Springs, Florida, pled guilty today to one count of attempted distribution of five kilograms or more of cocaine and one count of possession of a firearm in furtherance of a drug trafficking crime. Sentencing for Gonzalez, a former firefighter, has been scheduled for May 7, 2013 at 10:00 a.m. At sentencing, Gonzalez faces a maximum possible statutory penalty of up to life in prison for these charges.
As set forth in the plea agreement, law enforcement began investigating Gonzalez in August, 2012 about Gonzalez/s alleged participation in previous armed kidnappings and robberies. During the investigation, Gonzalez met with a confidential informant who was purporting to be a drug trafficker. At this meeting, Gonzalez offered to provide protective services for future drug transactions. Thereafter, Gonzalez provided “armed protection” on four different occasions: September 6, 2012, October 12, 2012, December 11, 2012, and January 24, 2013. After completing each transaction, Gonzalez was paid cash for his services.
Mr. Ferrer thanked the investigative efforts of ATF. He also thanked the Broward Sheriff’s Office, the Florida Department of Law Enforcement, the North Miami Beach Police Department, the Coral Springs Police Department, and the Metro Broward HIDTA Task Force. This case is being prosecuted by Assistant U.S. Attorney Courtney L. Coker.
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.
Charges Allege Trio Engaged in Home Buyer Credit ScamRead the Press Release
PHILADELPHIA - Darlene Johnson, 49, Sheryl McPhail, 49, and Tracey Hill, 49, all of Philadelphia, were charged today in a four count information alleging that they engaged in a scheme to defraud the Internal Revenue Service with false claims of First Time Home Buyer Credits (FTHBCs), announced United States Attorney Zane David Memeger. The defendants are each charged with one count of conspiracy to submit false claims to a government agency and submitting a false claim to a government agency.
According to the information, Johnson prepared tax returns for individuals whose names and identifying information she received from McPhail and Hill. In those returns, Johnson submitted false claims to the government, on behalf of clients, totaling approximately $390,680.65 and received FTHBCs totaling approximately $367,180.65. Johnson paid McPhail and Hill out of the proceeds from the returns where the FTHBC was fraudulently received. Johnson is charged with two additional counts of submitting a false claim to a government agency.
If convicted, Johnson faces a maximum possible sentence of 25 years imprisonment, a fine of up to $1 million, three years of supervised release, and a $400 special assessment. McPhail and Hill each face a maximum possible sentence of 15 years imprisonment, a fine of up to $500,000, three years supervised release, and a $200 special assessment.
The case was investigated by the Internal Revenue Service Criminal Investigations in conjunction with the Philadelphia Office of Inspector General. It is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE Contact: PATTY HARTMAN
EASTERN DISTRICT, PENNSYLVANIA Media Contact
615 Chestnut Street, Suite 1250 215-861-8525
Philadelphia, PA 19106COPIES OF NEWS MEMOS AND RELATED DOCUMENTS CAN ALSO BE FOUND AT
HTTP://www.justice.gov/usao/paeUNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525BLM Employee Sentenced for Theft of Government PropertyRead the Press Release
Court Orders $71,973 in Restitution
BOISE – Katrina Telleria, 35, of Boise, Idaho, was sentenced today to 12 months in prison for theft of government property, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Telleria to serve three years of supervised release and pay restitution of $71,973 to the Bureau of Land Management. On December 17, 2012, Telleria pleaded guilty to three counts of theft of government gift cards, one count of making a false statement to a department or agency of the United States, and one count of theft of government electronics equipment.
According to the plea agreement, from 2008 to 2011, Telleria was employed as a Bureau of Land Management (BLM) administrative assistant authorized to use a government-issued MasterCar to make purchases for office supplies, firefighting operations, and administrative purposes, including an incentive gift card program in the BLM’s Boise District Office Fire Program. According to the plea agreement, the gift cards purchased by Telleria were to be distributed to district office fire supervisors to give as an award to employees. Telleria instead used her government-issued MasterCard to purchase “general-use gift cards” (American Express cards, Visa cards, and cards issued by MasterCard), which she then stole and appropriated to her own personal use. According to the plea agreement, Telleria admitted that on at least 38 occasions, she acquired the general-use gift cards and specific electronic items on her government MasterCard, and then stole the gift cards and the electronic property. Telleria further agreed that total gift card losses to the government amount to $71,973. The government will receive full restitution under the court’s order.
“Ms. Telleria violated her public trust for personal gain,” said Olson. “Her conviction and sentence sends the strong message that those responsible for government resources have an obligation to all taxpayers to act solely in the public interest. I commend the BLM for a strong investigation.”
“After a thorough investigation by BLM's Law Enforcement Office and the U.S. Attorney's Office, a government employee has been convicted for the fraudulent diversion of government funds,” said BLM State Director Steve Ellis. “I am proud of the diligence and hard work of these law enforcement officers and the hundreds of BLM employees who serve in Idaho. That any governmen employee would consider their own personal gain ahead of their solemn public trust is unfortunate. This investigation and its outcome show that as public servants we will neither whitewash nor tolerate employee conduct that diverts public funds for personal gain.”
The case was investigated by the BLM's Office of Law Enforcement and Security.
Atlanta Man Sentenced for Multi-Million Dollar Fraud SchemesRead the Press Release
Defendant Refused To Appear In Court During Trial And Sentencing
ATLANTA – An Atlanta man was sentenced today by United States District Judge Julie E. Carnes to 30 years on charges of bank fraud, credit card fraud, and aggravated identity theft. Jean-Daniel Perkins, 37, of Atlanta, Georgia was convicted of defrauding American Express, SunTrust Bank, and hundreds of individual credit card holders.
United States Attorney Sally Quillian Yates said of today’s sentencing, “This defendant was a habitual fraudster and a world-class manipulator. He bought, sold, and traded in other people’s personal information to enrich himself, and he tried to manipulate the court system to his own advantage. Today’s sentence reflects the seriousness of his crimes.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI remains committed in conducting such investigations that help build solid criminal prosecutions against aggressive fraudsters such as Mr. Perkins. Today’s sentencing not only holds Mr. Perkins accountable for his actions but puts an end to his reckless victimization of others through his fraudulent financial schemes.”
Perkins was sentenced to 30 years, to be followed by 5 years of supervised release. He was also ordered to pay $510,509 in restitution. Perkins was convicted on June 27, 2011 after a five-day jury trial.
Judge Carnes orally pronounced the sentence on a “tentative” basis because Perkins refused to leave his jail cell to be escorted to the courtroom for the sentencing hearing. Perkins further refused to meet with his lawyer to discuss the potential sentence.
Perkins, who also was is in custody at the time of his trial, refused to attend court during the trial as well. Instead, he viewed a live video and audio feed of the proceedings while remaining in a cell at the courthouse. Because Perkins was not present at the sentencing, Judge Carnes gave him 30 days to file any objections to her oral sentence, after which it will become final.
According to United States Attorney Yates and the evidence and testimony at trial and sentencing: From November 2008 through February 2010, Perkins executed several different fraud schemes in Atlanta. An undercover FBI agent, posing as an employee of a company with financial data, made contact with Perkins, offering to make the sensitive financial data available to Perkins. The undercover agent ultimately met in person with Perkins, who gave the agent a dozen counterfeit credit cards, and the two discussed a wide variety of criminal schemes involving financial data and credit cards. The FBI agent recorded approximately 30 telephone calls with Perkins in which they discussed the schemes, and how the maximum amounts of money could be withdrawn from victim financial institutions and their customers.
The evidence at trial showed that, in one of his fraud schemes, Perkins purchased information needed to make credit cards, such as account numbers, from a source in Ukraine. He then encoded credit cards with the data and used the cards. The dozen credit cards Perkins gave to the FBI agent were in fact encoded with information obtained from the source in Ukraine.
The evidence at trial also showed that from February 2009 through February 2010, Perkins engaged in another fraud scheme in which he gained internal SunTrust account information and impersonated the account holders, resulting in the transfer of money from victim accounts to accounts under his control. In one instance involving an account held by a local construction company, Perkins impersonated the company’s president, signed up for online banking services from SunTrust, and authorized transfers of over $3,500,000 from the company’s account to approximately 100 accounts under his control. Fortunately, SunTrust was able to recover the transferred money before Perkins spent it.
In yet another fraud scheme, Perkins set up numerous fictitious merchant accounts with American Express. The evidence at trial showed that Perkins set up the merchant accounts at American Express to allow him to accept American Express credit cards as payment for nonexistent goods and services. Perkins, using stolen American Express credit card account numbers, then ran American Express credit card transactions through the merchant accounts, resulting in American Express paying millions of dollars to the fictitious merchants. The American Express credit cards used by Perkins belonged to hundreds of individual credit card holders.
On the day of Perkins’ arrest, law enforcement officials recovered dozens of counterfeit credit cards from Perkins, as well as digital media connecting Perkins to the fraud schemes. On the same day, law enforcement seized from Perkins’ apartment hundreds of counterfeit credit cards; items used to make counterfeit credit cards; including a device used for encoding cards with stolen credit card information; machines used to make counterfeit identification cards; items purchased with counterfeit credit cards; and additional digital evidence linking Perkins to several of the fraud schemes. In total, Perkins had approximately 100,000 credit card numbers on his digital devices.
This case was investigated by Special Agents of the Federal Bureau of Investigation and the Duluth Police Department.
Former Assistant United States Attorneys Robert McBurney and Nick Oldham, and Assistant United States Attorneys Lawrence Sommerfeld and Kurt Erskine prosecuted the case.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Army Private Pleads Guilty to First Degree Murder of Ten-Year-Old Boy at Fort Sill Army PostRead the Press Release
Lawton, Oklahoma – Today, CONNELL C. WILLIAMS, 33, from Virginia, has pled guilty to first degree murder in the starvation death of a ten-year-old boy on Fort Sill Army Post, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
"Marcus was a ten-year-old boy who was robbed of his life and subjected to a horrific and agonizing death by starvation," said U.S. Attorney Sanford C. Coats. "Although nothing can bring Marcus back, I am gratified that Connell Williams has accepted responsibility for his crime. By pleading guilty, he will be in a federal prison cell for the rest of his life and never again harm a child. I thank the investigators and the prosecution team who worked tirelessly to seek and obtain justice for Marcus in this case."
Williams, an enlisted member of the United States Army, was assigned as a PFC to the 214th Fires Brigade at Fort Sill in Comanche County, Oklahoma, in August 2010. Court proceedings showed that in September 2010, CANDICE C. HOLLOWAY, 32, from Norfolk, Virginia, and her two children moved into Fort Sill military housing with Williams. Williams and Holloway were not married and Williams is not the biological father of the two children. From early 2011 through May of 2011, Williams and Holloway intentionally withheld food from Marcus as a form of punishment, which ultimately resulted in his death on May 5, 2011. Marcus was ten-years-old at the time of his death.
Williams and Holloway were charged by indictment with first degree child abuse murder on September 7, 2011. On April 16, 2012, Holloway pled guilty to first degree murder in exchange for an agreement to serve a 30 year term in prison, followed by a five years of supervised release, and to cooperate with the prosecution and testify against Williams at his trial.
The Department of Justice originally sought the death penalty against Williams. The trial began last week and Holloway testified against Williams last Friday. In exchange for Williams’ plea of guilty to first degree murder and acceptance of a life sentence, the Department of Justice agreed to withdraw the notice to seek the death penalty. The Court accepted this guilty plea early this morning and Williams will receive a sentence of life without the possibility of release.
This case was investigated by the Federal Bureau of Investigation and the United States Army Criminal Investigation Division. The case is being prosecuted by United States Attorney Sanford C. Coats and Assistant U.S. Attorneys Randal A. Sengel and Robert A Bradford.
Alvin Man Gets 27 Years for Multiple Bank Fraud ConvictionsRead the Press Release
HOUSTON — Patrick Cody Morgan, 46, of Alvin, has been sentenced to 27 years in federal prison for his convictions on multiple counts of bank fraud, United States Attorney Kenneth Magidson announced today. A federal jury sitting in Houston found Morgan guilty on Oct. 30, 2012, of conspiracy to commit bank fraud and nine counts of bank fraud following two days of trial and less than three hours of deliberation.
Today, U.S. District Judge Lynn N. Hughes, who presided over the trial, handed Morgan a total sentence of 324 months to be followed by five years of supervised release. Morgan was also ordered to pay restitution in the amount of $25,277,802.
At trial, the government presented evidence that from July 2004 and continuing through September 2007, Morgan, along with his co-conspirators, participated in a scheme to defraud financial institutions insured by the Federal Deposit Insurance Corporation (FDIC) and residential mortgage lenders. Morgan would locate condominium units in the Houston area from a builder or developer. He would then set up trust accounts with names similar to the condominiums through which the title to pass. Co-defendants would recruit individuals, also known as straw buyers with good credit to act as borrowers in applications for residential mortgage loans to purchase one or more of the properties, which would ultimately go into foreclosure because of the failure to pay the loans.
Within the overall scheme, there were more than 100 properties with a loan amount of more than $39 million. The loss amount was determined to be more than $25 million.
Co-defendants John Elias, 44, Reginald Anderson, 41, Viktor Ly , 43, and Christopher Pearson, 34, all of Houston, previously pleaded guilty to conspiracy to commit bank fraud and will be sentenced on various dates in March and April 2013. Minh Vu, 41, also of Houston, was sentenced to 60 months prison on Feb. 19, 2013.
The case was investigated by the Internal Revenue Service - Criminal Investigation and the FBI and is being prosecuted by Assistant U.S. Attorneys Jennifer Lowery and Carolyn Ferko.
Alleged Aryan Brotherhood of Texas Leader <br /> Indicted on Federal Racketeering ChargesRead the Press Release
James Francis Sampsell has been indicted in Houston for his alleged role as a leader of a racketeering enterprise known as the Aryan Brotherhood of Texas (ABT), announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
The second superseding indictment returned on Wednesday, Feb. 20, 2013, by a federal grand jury in Houston charges Sampsell, aka “Skitz,” 50, of Midland, Texas, with conspiracy to engage in racketeering activity and possession with intent to deliver methamphetamine.
Sampsell’s co-defendants, who were previously charged for their alleged roles in the racketeering conspiracy, range from senior leaders to soldiers of the ABT, a “whites only,” prison-based gang with members operating inside and outside of state and federal prisons throughout Texas and elsewhere in the United States since at least the early 1980s. In total, the second superseding indictment charges 33 alleged members of the ABT.
According to court documents, the ABT has a detailed and uniform organizational structure, with territory divided into five regions, each run by a “general.” Four alleged ABT generals, Terry Ross Blake, 55, aka “Big Terry”; Larry Max Bryan, 51, aka “Slick”; William David Maynard, 42, aka “Baby Huey”; and Charles Lee Roberts, 68, aka “Jive,” were charged in the superseding indictment with conspiracy to participate in the racketeering activities of the ABT, among other charges. The second superseding indictment charges the fifth general, Sampsell, with conspiracy to participate in the racketeering activities of the ABT, among other charges.
In total, the second superseding indictment charges 33 alleged members of the ABT with conspiracy to participate in the racketeering activities of the ABT. Alleged members of the ABT are also charged with involvement in three murders, multiple attempted murders, kidnappings, assaults and conspiracy to distribute methamphetamine and cocaine. On Jan. 31, 2012, two previously indicted alleged gang members, Ben Christian Dillon, aka, “Tuff”, 40, of Houston, and James Marshall Meldrum, aka “Dirty,” 40, of Dallas, each pleaded guilty before U.S. District Judge Sim Lake in Houston.
According to court documents, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to court documents, previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT is alleged to have expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
The racketeering and drug conspiracy charges each carry a maximum penalty of life in prison. The murder-related charges carry maximum penalties of life in prison or the death penalty.
An indictment is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Department; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Tarrant County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Fort Worth, Texas, Police Department; San Antonio Police Department; Baytown, Texas, Police Department; Carrollton, Texas, Police Department; Alvin, Texas, Police Department; Montgomery County District Attorney’s Office; Atascosa County District Attorney’s Office; Harris County District Attorney’s Office; and the Kaufman County, Texas, District Attorney’s Office.
The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office for the Southern District of Texas.
Sunday 24 February 2013
Wichita Man Sentenced to Five YearsOn Federal Firearms ChargeRead the Press Release
WICHITA, KAN. – A Wichita man was sentenced Monday to five years in federal prison for a firearms violation, U.S. Attorney Barry Grissom.
Jose Armando De Luna, 35, Wichita, Kan., pleaded guilty to one count of unlawful possession of firearms after a felony conviction. In his plea he admitted that on Sept. 6, 2013, when he was arrested in Wichita, he possessed 20 firearms including shotguns, rifles and handguns. At the time, he was prohibited by federal law from possessing firearms because of a prior felony conviction.
According to court documents, the investigation began in September 2013 when the Wichita Police Department arranged to buy methamphetamine from DeLuna at his residence in the 700 block of South Terrace. Police seized firearms belonging to him when they served search warrants at that residence and a residence in the 1800 block of south Green Acres.
Grissom commended the Wichita Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Alan Metzger for their work on the case.
Gang Member SentencedIn Dodge City Racketeering CaseRead the Press Release
WICHITA, KAN. - A member of a Dodge City street gang was sentenced Monday to 82 months in federal prison, U.S. Attorney Barry Grissom said.
Alfredo Beltran-Ruiz, 23, Dodge City, Kan., pleaded guilty to one count of aiding and abetting attempted murder, which was a violent crime in aid of racketeering. In his plea, he admitted that on March 15, 2011, he aided and abetted the attempted murder of a victim named Reyes Delira-Padilla by firing shots at the victim’s house at 1705 Ave. D in Dodge City. Beltran-Ruiz was a member of the Diablos Viejos gang and was affiliated with the Norteno street gang. Delira-Padilla was a member of the rival Sureno gang.
Beltran-Ruiz is one of 22 Norteno gang members who have been convicted on charges contained in a federal indictment filed May 2012. It was only the second time a federal RICO Act indictment (Racketeer Influenced and Corrupt Organizations Act) has been filed in Kansas. Two defendants are awaiting sentencing: Juan Torres and Jayson Vargas.
Grissom commended the Dodge City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ford County Sheriff's Office, the Ford County Attorney’s Office, the Kansas Bureau of Investigation, Assistant Aaron Smith and Assistant U.S. Attorney Lanny Welch for their work on the case.
Friday 22 February 2013
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary L. Hatton
www.usdoj.gov/usao/inn/ Fax: (219) 852-2770
South Bend, Indiana -- The United States Attorney’s Office announced the following activity in Federal Court:
INDICTMENTS:
Andre Bradford , 35, of South Bend, Indiana, was charged in an Indictment with 3 counts of distribution of heroin.These charges were filed as the result of an investigation by the Drug Enforcement Administration and the South Bend Police Department.This case has been assigned to and will be prosecuted by Assistant United States Attorney Joshua Kolar.
David Lee Robinson , 33, of South Bend, Indiana, was charged in an Indictment with 3 counts of distribution of heroin.These charges were filed as the result of an investigation by the Drug Enforcement Administration and the South Bend Police Department.This case has been assigned to and will be prosecuted by Assistant United States Attorney Joshua Kolar.
PLEAS:
Christopher Akens, 35, of Mishawaka, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of possession of child pornography.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 5/23/13.These charges were filed as a result of an investigation by the Federal Bureau of Investigation and the Indiana State Police.This case is being prosecuted by Assistant United States Attorney John Maciejczyk.
Deneen Lewis, 41, of South Bend, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of theft of government funds (social security benefits).Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 5/23/13.These charges were filed as a result of an investigation by the Social Security Administration.This case is being prosecuted by Assistant United States Attorney Barbara Brook.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Jeffrey Farmer, 42, of Knox, Indiana, was sentenced by District Judge Robert Miller, Jr. to 84 months imprisonment and 10 years of supervised release after pleading guilty to the felony offense of accessing with intent to view child pornography.According to documents filed in this case, Starke County Detectives obtained a state search warrant to search Farmer’s residence and seize computers and digital storage devices.Farmer admitted he used the computer to view digital images from the internet that depicted prepubescent minors or minors who had not attained the age of 12 years engaging in sexually explicit conduct. This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including ICE - Homeland Security Investigations.This case was prosecuted by Assistant United States Attorney John Maciejczyk.
Timothy Lewis, 41, of South Bend, Indiana, was sentenced by District Judge Robert Miller, Jr. to 51 months imprisonment and 3 years of supervised release after pleading guilty to the felony offenses of distribution of heroin and possession of a firearm in furtherance of a drug trafficking crime.According to documents filed in this case, Lewis was selling small quantities of heroin to people, including a confidential informant, in late 2011 and 2012. Police searched his home in June and found heroin and a loaded firearm. After Lewis was released on bond, he again sold heroin to the confidential informant. Police searched his home again in August finding heroin and another loaded firearm. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Metro Special Operations.This case was prosecuted by Assistant United States Attorney William Grimmer.
Darnell Jackson, 31, of Elkhart, Indiana, a defendant in the case US v Carlia Wells et al., was sentenced by District Judge Robert Miller, Jr. to 60 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the South Bend Police Department.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Jermaine Davis, 31, of South Bend, Indiana, was sentenced by District Judge Robert Miller, Jr. to 24 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.According to documents filed in this case, South Bend Police initiated a traffic stop for a traffic violation. As officers approached the vehicle, the driver Jermaine Davis and his two passengers fled the scene in the car. During the vehicle pursuit, a firearm and a bag of marijuana were tossed from the vehicle. South Bend Police recovered the marijuana and a Springfield XD40 pistol. Police also recovered more than $1,500 cash and a small amount of marijuana on the person of Jermaine Davis.Davis has a prior felony conviction for possession of cocaine. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the South Bend Police Department.This case was prosecuted by Assistant United States Attorney Donald Schmid.
John Hodowaniac, 60, of South Bend, Indiana, was sentenced by District Judge Jon DeGuilio to 60 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of attempted arson of a vehicle.According to documents filed in this case, Hodowaniac admitted that, along with his son Michael Hodowaniac and another person, he attempted to set fire to an automobile in exchange for a cash payment from this other person. He took substantial steps toward the execution of the plan to set fire to and maliciously destroy the automobile by directing that gasoline be put in a plastic bottle, traveling to the area where the automobile was located, and accepting cash for the arson. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the South Bend Police Department.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ FAX (219) 852-2770
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
INDICTMENT:
Lakita Lee, 35, of Gary, Indiana, was charged in an Indictment returned on 2/21/13 with theft of government property.These charges were filed as the result of an investigation by the Social Security Administration Office of the Inspector General.This case has been assigned to and will be prosecuted by Assistant United States Attorney Gary Bell and Emily Cremeans.
PLEAS:
Eddie Torres, 43, of East Chicago, Indiana, a defendant in the case US v Briseno et al., pled guilty before Chief Judge Philip Simon to the felony offense of conspiracy to participate in racketeering activity and conspiracy to possess with the intent to distribute cocaine and marijuana.Sentencing has been set for 12/5/13.These charges were filed as a result of an investigation by Bureau of Alcohol, Tobacco, Firearms, and Explosives, the East Chicago Police Department, and the Federal Bureau of Investigation, with assistance from the Gary Police Department, the Hammond Police Department and the Lake County HIDTA. This case is being prosecuted by Assistant United States Attorney David Nozick.
DISPOSITIONS:
Thomas R. Philpot, 55, of Highland, Indiana, was sentenced by Senior District Judge James Moody to 18 months imprisonment, a fine of $10,000 and 2 years of supervised release after being found guilty at trial of the felony offenses of mail fraud and theft from a federally funded program.According to documents filed in this case, Philpot, while serving in the elected capacity of Lake County Clerk, used IV-D incentive funds received by the Lake County Clerk’s office from the federal government as bonus money for himself without obtaining the authorization of the County Council as required by law.Philpot was ordered to self-surrender to the Bureau of Prisons or the US Marshal’s Service on 4/3/13 to begin execution of his sentence.This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Philip Benson.
Thomas Scott Spangle, 32, of Lake Village, Indiana, was sentenced by Chief Judge Philip Simon to 84 months imprisonment and 15 years of supervised release after pleading guilty to the felony offense of distribution of child pornography.According to documents filed in this case, in May 2010, an undercover FBI agent working in Miami, Florida was using the peer-to-peer file sharing program “Gigatribe” to download child pornography files being distributed by others online. The undercover officer browsed the shared files and observed many depictions of children engaging in sexually explicit activity.During the download, the undercover agent used a program to identify the IP address being utilized, which was later identified as belonging to Spangle.Spangle’s computer equipment was seized and a full forensic examination was conducted on each piece of equipment.The examination revealed that Spangle collected a total of 5,269 images and 504 videos depicting minor children being sexually exploited and abused. Because each video counts as 75 images for Guideline calculation purposes, Spangle possessed the equivalent of 43,069 child pornography images.If played back to back, the videos in Spangle’s collection would run for 26 hours, 44 minutes and 58 seconds This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the Federal Bureau of Investigation, the Indiana State Police and the Lafayette Police Department.This case was prosecuted by Assistant United States Attorney Jill Koster.
Martin Jonassen, 57, of Elwood, Kansas, was sentenced by Senior District Judge James Moody to 480 months imprisonment and 5 years of supervised release after being found guilty at trial of the felony offenses of kidnapping and intimidation of a witness.According to documents filed in this case, Jonassen kidnapped his 21 year old daughter in Missouri and drove her to Portage, Indiana, where she tried to escape from him by running naked from the bathroom of their rented motel room to a nearby liquor store where she begged for help.Jonassen chased her and physically dragged her out of the store and forced her into his waiting vehicle.After his arrest, Jonassen embarked on a relentless campaign of calls and letters in which he employed manipulation and persuasion to try to get her to retract her statements to law enforcement.The government admitted evidence of that conduct at trial including numerous recorded telephone calls during which Jonassen offered cash or other bribes to her, and copies of letters Jonassen sent to the victim and others wherein he urged her (or others to encourage her) to retract her prior statements to law enforcement. This case was the result of an investigation by the Federal Bureau of Investigation and the Portage Police Department.This case was prosecuted by Assistant United States Attorney Jill Koster.
Victor Meza, Jr., 24, of Hammond, Indiana, a defendant in the case US v Vargas et al., was sentenced by Senior District Judge Rudy Lozano to 96 months imprisonment and 5 years of supervised release after pleading guilty to the felony offenses of conspiracy to participate in racketeering activity and conspiracy to possess with the intent to distribute and distribute cocaine and marijuana.This case was the result of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the National Gang Targeting, Enforcement & Coordination Center (GangTECC); the National Gang Intelligence Center; the Chicago Police Department; the Griffith Police Department; the Hammond Police Department; the Highland Police Department; the Lake County, Indiana, HIDTA and the Houston, Texas Police Department.This case was prosecuted by Trial Attorney Joseph Cooley of the Department of Justice Criminal Division and Assistant United States Attorney David Nozick.
Osvaldo Herrera, 23, of Calumet City, Illinois, was sentenced by Senior District Judge James Moody to 45 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of distribution of cocaine.This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Joshua Kolar.
Nicholas Jackson, 21, of Lafayette, Indiana, a defendant in the case US v Robinson et al., was sentenced by Senior District Judge James Moody to 18 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of being an unlawful user/addict in possession of firearms. Jackson, an unlawful user of and addicted to a controlled substance (marijuana), possessed a .20 gauge shotgun with an obliterated serial number. After learning that his co-defendants were arrested for a burglary, Jackson called his friend to pick up the gun so that it could be disposed of in the Wabash River.Subsequently, after an interview with ATF agents, the shotgun was located and recovered. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Tippecanoe County Police Department and the Lafayette Police Department.This case was prosecuted by Assistant United States Attorney Nicholas Padilla.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ FAX (219) 852-2770
Fort Wayne, Indiana- The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
Jemorris Sewell, 29, of Fort Wayne, Indiana, pled guilty before Magistrate Judge Roger Cosbey to the felony offenses of conspiracy to distribute and possession with the intent to distribute crack cocaine.Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. These charges were filed as a result of an investigation by the Federal Bureau of Investigation, the Indiana State Police, the Fort Wayne Police Department, the Allen County Police Department, the Allen County Drug Task Force and the New Haven Police Department.This case is being prosecuted by Assistant United States Attorney Lesley Miller Lowery.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Virginia Man Charged with Stealing Social Security NumberRead the Press Release
PHILADELPHIA - Ronnie Lee Durham, a/k/a “Ronnie Lee Johnson,” and “R.P.J.,” 50, of Alexandria, Virginia and formerly of Feasterville, PA is charged by Indictment, unsealed yesterday, with stealing and using the social security number of another person, announced United States Attorney Zane David Memeger. Durham is charged with four counts of Social Security Fraud and one count of Aggravated Identity Theft. He was arrested in Virginia.
According to the indictment, the defendant used the Social Security number and date of birth of an individual residing in another state to open bank accounts, obtain a debit card, and obtain employment. In March 2011, Durham, using the name Ronnie Lee Johnson, went to work for a company in Langhorne, PA, where he had access to client files. Between March and April of 2011, Durham allegedly accessed the identifying information of “RJP,” who resided in Mississippi, and rented an apartment in Feasterville, PA, using RJP’s date of birth and social security number. It is further alleged that Durham opened bank and credit card accounts using RJP’s information and also secured a job with a New Jersey company using that information.
If convicted, the defendant faces a maximum possible sentence of 22 years imprisonment, a three-year period of supervised release, a $1.25 million fine, and a $500 special assessment.The case was investigated by the Social Security Administration, Office of Inspector General, the Diplomatic Security Service, and the Lower Southampton Police Department. It is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525United States Joins Lawsuit Alleging Lance Armstrong and Others Caused the Submission of <br /> False Claims to the U.S. Postal ServiceRead the Press Release
The Department of Justice announced today that the government has joined a civil lawsuit alleging that Lance Armstrong, Johan Bruyneel and Tailwind Sports LLC and Tailwind Sports Corporation (Tailwind) submitted or caused the submission of false claims to the U.S. Postal Service (USPS) in connection with its sponsorship of a professional bicycle racing team by regularly employing banned substances and methods to enhance their performance, in violation of the USPS sponsorship agreements.
From 1996 through 2004, the USPS sponsored a professional cycling team owned by Tailwind and its predecessors. Lance Armstrong was the lead rider on the team, and between 1999 and 2004, he won six consecutive Tour de France titles as a member of the USPS-sponsored team. Johan Bruyneel was the directeur sportif, or manager, of the cycling team.
The sponsorship agreements gave the USPS certain promotional rights, including the right to prominent placement of the USPS logo on the cycling team’s uniform. Each of the agreements required the team to follow the rules of cycling’s governing bodies, which prohibited the use of certain performance enhancing substances and methods. Between 2001 and 2004 alone, the Postal Service paid $31 million in sponsorship fees.
The lawsuit joined today by the government alleges that riders on the USPS-sponsored team, including Armstrong, knowingly caused the USPS agreements to be violated by regularly employing banned substances and methods to enhance their performance. The lawsuit further alleges that Bruyneel knew that team members were using performance enhancing substances and facilitated the practice.
The government today notified the court that it is joining this lawsuit against Armstrong, Bruyneel and Tailwind, and will file its formal complaint within 60 days.
“The Postal Service contract with Tailwind required the team to enter cycling races, wear the Postal Service logo, and follow the rules banning performance enhancing substances – rules that Lance Armstrong has now admitted he violated,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Civil Division of the Department of Justice. “Today’s action demonstrates the Department of Justice’s steadfast commitment to safeguarding federal funds and making sure that contractors live up to their promises.”
“Lance Armstrong and his cycling team took more than $30 million from the U.S. Postal Service based on their contractual promise to play fair and abide by the rules – including the rules against doping,” said Ronald C. Machen Jr., U.S. Attorney for the District of Columbia. “The Postal Service has now seen its sponsorship unfairly associated with what has been described as ‘the most sophisticated, professionalized, and successful doping program that sport has ever seen.’ This lawsuit is designed to help the Postal Service recoup the tens of millions of dollars it paid out to the Tailwind cycling team based on years of broken promises. In today’s economic climate, the U.S. Postal Service is simply not in a position to allow Lance Armstrong or any of the other defendants to walk away with the tens of millions of dollars they illegitimately procured.”
“The Postal Service conducts business with many different contractors and subcontractors, with a large majority of them providing a much needed service and fulfilling their contractual duties. It is critical that public confidence in contractor performance remains high. When that public trust is compromised, as occurred in this case, the Office of Inspector General will fully investigate,” said David C. Williams, Inspector General, U.S. Postal Service, and Office of Inspector General.
“The Postal Service strongly supports intervention by the Department of Justice in this matter and a vigorous pursuit of this case,” said Postal Service General Counsel and Executive Vice President Mary Anne Gibbons. “The defendants agreed to play by the rules and not use performance enhancing drugs. We now know that the defendants failed to live up to their agreement, and instead knowingly engaged in a pattern of activity that violated the rules of professional cycling and, therefore, violated the terms of their contracts with the Postal Service. For that reason, the Postal Service fully agrees with the decision by the Department of Justice to seek appropriate damages under the False Claims Act.”
For many years, including during the USPS sponsorships, Armstrong and others repeatedly denied that the team used performance enhancing substances or methods. Yet on Oct. 10, 2012, the U.S. Anti-Doping Agency (USADA) issued a report concluding that Armstrong used banned performance enhancing substances starting in at least 1998 and continuing throughout his professional career, and that he pressured and helped his teammates to engage in similar conduct. Accordingly, USADA disqualified all of his competitive results since Aug. 1, 1998, including his seven Tour de France victories, and banned him from sport for life pursuant to the World Anti-Doping Code.
In a recently-televised interview with Oprah Winfrey, Armstrong contradicted his earlier denials and admitted that he used banned substances and methods throughout his career, starting in the mid-1990s. In particular, he admitted having engaged in banned practices during each of his seven Tour de France victories, including the six he won as a USPS rider. Armstrong explained that he avoided detection by anti-doping authorities by carefully timing his use of banned drugs so that they would leave his system prior to his undergoing cycling’s required periodic drug testing.
The lawsuit joined by the United States was filed by Floyd Landis, a former rider and teammate of Armstrong on the USPS sponsored team from 2002 through 2004. The lawsuit was filed under the False Claims Act, which imposes liability on those who submit false claims for government funds, and provides for the recovery of three times the government’s damages, plus civil penalties. The False Claims Act contains a qui tam or whistleblower provision, which permits private parties to sue on behalf of the United States for false claims and share in any recovery. The False Claims Act permits the government to investigate the allegations and intervene, or decline to intervene in the whistleblower’s lawsuit. While the government notified the court that it was joining the lawsuit’s allegations as to Armstrong, Bruyneel, and Tailwind, it advised the court that it was not intervening in the case as to several other defendants named in the complaint.
Principal Deputy Assistant Attorney General Delery and U.S. Attorney Machen commended the coordinated effort of the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Columbia, and the USPS Office of Inspector General and Office of General Counsel, in their investigation of this matter.
The lawsuit, filed in the U.S. District Court for the District of Columbia, is captioned United States ex rel. Landis v. Tailwind Sports Corporation, et al. The claims made in the complaint are only allegations and do not constitute a determination of liability. Trial Attorney Robert Chandler of the Department of Justice’s Civil Division and Assistant U.S. Attorneys Darrell Valdez and Mercedeh Momeni of the U.S. Attorney’s Office for the District of Columbia are representing the government.
United States Joins Lawsuit Alleging Lance Armstrong and OthersCaused the Submission of False Claims to the U.S. Postal ServiceRead the Press Release
WASHINGTON – The Department of Justice announced today that the government has joined a civil lawsuit alleging that Lance Armstrong, Johan Bruyneel and Tailwind Sports LLC and Tailwind Sports Corporation (Tailwind) submitted or caused the submission of false claims to the U.S. Postal Service (USPS) in connection with its sponsorship of a professional bicycle racing team by regularly employing banned substances and methods to enhance their performance, in violation of the USPS sponsorship agreements.
From 1996 through 2004, the USPS sponsored a professional cycling team owned by Tailwind and its predecessors. Lance Armstrong was the lead rider on the team, and between 1999 and 2004, he won six consecutive Tour de France titles as a member of the USPS-sponsored team. Johan Bruyneel was the directeur sportif, or manager, of the cycling team.
The sponsorship agreements gave the USPS certain promotional rights, including the right to prominent placement of the USPS logo on the cycling team’s uniform. Each of the agreements required the team to follow the rules of cycling’s governing bodies, which prohibited the use of certain performance enhancing substances and methods. Between 2001 and 2004 alone, the Postal Service paid $31 million in sponsorship fees.
The lawsuit joined today by the government alleges that riders on the USPS-sponsored team, including Armstrong, knowingly caused the USPS agreements to be violated by regularly employing banned substances and methods to enhance their performance. The lawsuit further alleges that Bruyneel knew that team members were using performance enhancing substances and facilitated the practice.
The government today notified the court that it is joining this lawsuit against Armstrong, Bruyneel and Tailwind, and will file its formal complaint within 60 days.
“The Postal Service contract with Tailwind required the team to enter cycling races, wear the Postal Service logo, and follow the rules banning performance enhancing substances – rules that Lance Armstrong has now admitted he violated,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Civil Division of the Department of Justice. “Today’s action demonstrates the Department of Justice’s steadfast commitment to safeguarding federal funds and making sure that contractors live up to their promises.”
“Lance Armstrong and his cycling team took more than $30 million from the U.S. Postal Service based on their contractual promise to play fair and abide by the rules – including the rules against doping,” said Ronald C. Machen Jr., U.S. Attorney for the District of Columbia. “The Postal Service has now seen its sponsorship unfairly associated with what has been described as ‘the most sophisticated, professionalized, and successful doping program that sport has ever seen.’ This lawsuit is designed to help the Postal Service recoup the tens of millions of dollars it paid out to the Tailwind cycling team based on years of broken promises. In today’s economic climate, the U.S. Postal Service is simply not in a position to allow Lance Armstrong or any of the other defendants to walk away with the tens of millions of dollars they illegitimately procured.”
“The Postal Service conducts business with many different contractors and subcontractors, with a large majority of them providing a much needed service and fulfilling their contractual duties. It is critical that public confidence in contractor performance remains high. When that public trust is compromised, as occurred in this case, the Office of Inspector General will fully investigate,” said David C. Williams, Inspector General, U.S. Postal Service, and Office of Inspector General.
“The Postal Service strongly supports intervention by the Department of Justice in this matter and a vigorous pursuit of this case,” said Postal Service General Counsel and Executive Vice President Mary Anne Gibbons. “The defendants agreed to play by the rules and not use performance enhancing drugs. We now know that the defendants failed to live up to their agreement, and instead knowingly engaged in a pattern of activity that violated the rules of professional cycling and, therefore, violated the terms of their contracts with the Postal Service. For that reason, the Postal Service fully agrees with the decision by the Department of Justice to seek appropriate damages under the False Claims Act.”
For many years, including during the USPS sponsorships, Armstrong and others repeatedly denied that the team used performance enhancing substances or methods. Yet on Oct. 10, 2012, the U.S. Anti-Doping Agency (USADA) issued a report concluding that Armstrong used banned performance enhancing substances starting in at least 1998 and continuing throughout his professional career, and that he pressured and helped his teammates to engage in similar conduct. Accordingly, USADA disqualified all of his competitive results since Aug. 1, 1998, including his seven Tour de France victories, and banned him from sport for life pursuant to the World Anti-Doping Code.
In a recently-televised interview with Oprah Winfrey, Armstrong contradicted his earlier denials and admitted that he used banned substances and methods throughout his career, starting in the mid-1990s. In particular, he admitted having engaged in banned practices during each of his seven Tour de France victories, including the six he won as a USPS rider. Armstrong explained that he avoided detection by anti-doping authorities by carefully timing his use of banned drugs so that they would leave his system prior to his undergoing cycling’s required periodic drug testing.
The lawsuit joined by the United States was filed by Floyd Landis, a former rider and teammate of Armstrong on the USPS sponsored team from 2002 through 2004. The lawsuit was filed under the False Claims Act, which imposes liability on those who submit false claims for government funds, and provides for the recovery of three times the government’s damages, plus civil penalties. The False Claims Act contains a qui tam or whistleblower provision, which permits private parties to sue on behalf of the United States for false claims and share in any recovery. The False Claims Act permits the government to investigate the allegations and intervene, or decline to intervene in the whistleblower’s lawsuit. While the government notified the court that it was joining the lawsuit’s allegations as to Armstrong, Bruyneel, and Tailwind, it advised the court that it was not intervening in the case as to several other defendants named in the complaint.
Principal Deputy Assistant Attorney General Delery and U.S. Attorney Machen commended the coordinated effort of the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Columbia, and the USPS Office of Inspector General and Office of General Counsel, in their investigation of this matter.
The lawsuit, filed in the U.S. District Court for the District of Columbia, is captioned United States ex rel. Landis v. Tailwind Sports Corporation, et al. The claims made in the complaint are only allegations and do not constitute a determination of liability. Trial Attorney Robert Chandler of the Department of Justice’s Civil Division and Assistant U.S. Attorneys Darrell Valdez and Mercedeh Momeni of the U.S. Attorney’s Office for the District of Columbia are representing the government.
13-066Ukrainian National Pleads Guilty to Conspiracy to Export Night Vision EquipmentRead the Press Release
Volodomyr Ponomarenko, a citizen of Ukraine, pled guilty today at the federal courthouse in Brooklyn, New York, before the Honorable Edward R. Korman to conspiring to violate the Arms Export Control Act by attempting to export military-grade night vision equipment from the United States to Ukraine. Ponomarenko was arrested while attempting to enter the United States on March 23, 2011.
The plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Lisa Monaco, Assistant Attorney General for National Security; James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York; and Kenneth Siegler, Resident Agent-in-Charge, Defense Criminal Investigative Service (DCIS).
As alleged in the indictment and the underlying criminal complaint, the defendant purchased military-grade night vision equipment and other restricted weapons components from dealers in the United States and then attempted to export that equipment to Ukraine without the required license. As part of the export scheme, the defendant used straw purchasers in the United States to purchase the equipment. In exchange for a fee, the straw purchasers shipped the items to various freight forwarding companies for export to the defendant in Ukraine. Pursuant to the investigation, however, the night vision scopes and other weapons components were intercepted by law enforcement at John F. Kennedy International Airport.
The export of military-grade night vision equipment requires a license from the United States Department of State, and those who willfully seek to circumvent that requirement face significant criminal penalties. When sentenced, Ponomarenko faces up to 5 years in prison.
“The defendant tried to circumvent laws that protect our national security by preventing specialized technologies from falling into the wrong hands,” stated United States Attorney Lynch. “As today’s conviction shows, the United States will vigorously prosecute violations of our laws that help maintain the superiority of our armed forces on land, sea, and air.” Ms. Lynch expressed her grateful appreciation to U.S. Immigration and Customs Enforcement, Homeland Security Investigations, New York, and added that the government’s investigation is ongoing.
“Today’s guilty plea ends a conspiracy to willfully violate the customs laws of the United States and further safeguards America’s sensitive military technology,” said James T. Hayes Jr., Special Agent-in-Charge of HSI New York. “HSI agents and our partners with DCIS and the United States Attorney’s Office expertly foiled a potentially dangerous smuggling scheme.”
“Today’s guilty plea demonstrates the ongoing commitment of the Defense Criminal Investigative Service, in cooperation with our law enforcement partners and the U.S. Attorney’s Office, to aggressively pursue those intent on acquiring and illegally exporting U.S. military technology. Any attempt to circumvent the export laws will be fully investigated and prosecuted to ensure that America’s Warfighters maintain their tactical and strategic advantage around the world,” stated DCIS Resident Agent-in-Charge Siegler.
The government’s case is being prosecuted by Assistant United States Attorneys David Sarratt and Seth DuCharme, with assistance from Trial Attorney David Recker of the Department of Justice Counterespionage Section.
The Defendant:
VOLODOMYR PONOMARENKO
Age: 43USP-Marion Inmate Sentenced for Assaulting A Correctional OfficerRead the Press Release
Henry Ingram, 34, an inmate at the United States Penitentiary at Marion, Illinois, was sentenced today in United States District Court in Benton to a term of 42 months’ imprisonment for assaulting a correctional officer at that facility, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The offense occurred on August 21, 2012. Ingram pled guilty to the single count indictment charging him with assault on November 19th.
Evidence supporting the guilty plea and sentence showed that Ingram struck a correctional officer in the face with his fist after the correctional officer conducted a pat-down search of Ingram in a hallway at the prison and found that he was in possession of contraband. The officer began to escort Ingram to an office to question him about the contraband and that is when Ingram turned and struck the officer in the face. The assault was captured on the prison’s internal video recording system.
The 42 month term of imprisonment was imposed consecutively to the 20 year sentence for conspiring to distribute powder cocaine, crack cocaine, heroin, and marijuana that Ingram was serving at the time of the assault. He was also ordered to pay fines and special assessments totaling $200 and was placed on a 2 year term of supervised release to follow his incarceration.
The case was investigated by the Federal Bureau of Investigation with the assistance of the Federal Bureau of Prisons.
The case was prosecuted by Assistant United States Attorney James M. Cutchin.
Two Arrested for Failing to Pay Employment TaxesRead the Press Release
LAREDO, Texas – Jorge Montemayor and Leticia Reyna have been arrested following the return of a 14-count indictment accusing them of failure to pay over employment taxes to the Internal Revenue Service (IRS), United States Attorney Kenneth Magidson announced today along with Special Agent in Charge of IRS - Criminal Investigation Lucy Cruz.
"Business owners have a responsibility to withhold income taxes for their employees and then remit those taxes to the Internal Revenue Service," said Cruz. "The failure to pay over withheld taxes are very serious offenses; IRS-CI is committed to vigorously pursuing those who violate employment tax laws."
According to the allegations in the indictment, Montemayor and Reyna operated Professional Skilled Services Inc., a home health care business in Laredo. Montemayor opened and began to operate the home health care business GDM Home Health Inc. in 2006. Montemayor and Reyna both were authorized to take care of financial matters for Professional Skilled Services and were listed as signatories on this company’s bank accounts. Montemayor had this same authorization for GDM Home Health Inc., according to the indictment.
As owner/operators with control over their businesses’ financial affairs, Montemayor and Reyna were responsible for collecting and withholding employment taxes from their employees’ paychecks. Employment taxes include federal income tax, Social Security and Medicare taxes. Montemayor and Reyna reported these withheld taxes but allegedly failed to pay them over to the United States. The indictment further alleges Montemayor and Reyna caused their respective companies to divert corporate funds to cover non-business expenses, including trips and entertainment. Montemayor and Reyna still allegedly owe more than $125,000 in employment taxes on behalf of Professional Skilled Services Inc. employees, and Montemayor still owes more than $1.3 million in employment taxes on behalf of GDM Home Health Inc. employees, the indictment alleges.
Failure to pay over employment tax carries a statutory maximum penalty upon conviction of five years in prison and a $250,000 fine.
The investigation resulting in the charges against Montemayor and Reyna were conducted by the IRS-CI and FBI. Assistant United States Attorney Elizabeth R. Rabe is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.Toledo Woman Sentenced to Two Years in Prison, Ordered to Pay $505,777 After Stealing from ChurchRead the Press Release
A Toledo woman was sentenced to two years in prison and ordered to pay $505,777 in restitution after previously admitting to stealing from Gesu Parish in Toledo, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Patricia Stanz, 61, was also sentenced to two years of supervised release by U.S. District Judge James Carr.
“This person abused the trust of her employer and the entire congregation,” Dettelbach said. “This sentence should send a message to those who would abuse the trust of friends, relatives or coworkers to enrich themselves.”
Stanz pleaded guilty last year to one count each of counterfeit securities and fraudulent use of a an access device (credit card).
From August 2007 to August 2011, Stanz was the business manager for the Gesu Parish, Toledo, Ohio, according to court documents.
She created and signed – without authorization – nearly 100 checks totaling approximately $295,000 from the Gesu Parish checking account with the intent to deceive the Fifth Third Bank. She also fraudulently used a credit card issued to Gesu Parish obtaining approximately $230,000 in cash advances and purchases, according to court documents.
This case was investigated by the Federal Bureau of Investigation and handled by Assistant United States Attorney Thomas A. Karol.
Three Men Sentenced to Prison Terms for 2011 Murder in Southeast WashingtonDefendants Lured Victim to Scene, Stabbed, and Robbed Him; Attack Captured on Victim’s 911 CallRead the Press Release
WASHINGTON – Wayne Jackson, 23, of Capitol Heights, Md., Harold Proctor, 20, of Upper Marlboro, Md., and Christopher Williams, 21, of Landover, Md., were sentenced today to prison terms of 24 years, 19 years, and 22 years, respectively, for the 2011 slaying of a man in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced today.
The defendants pled guilty in November 2012, in the Superior Court of the District of Columbia, to second-degree murder while armed and related charges. Proctor and Williams also pled guilty to obstructing justice for their role in attempting to interfere in the murder investigation. They were sentenced by the Honorable Ronna L. Beck. Upon completion of their prison terms, the defendants will be placed on five years of supervised release.
At the sentencings today, Judge Beck noted the viciousness of the murder, and expressed sympathy for the victim’s family.
According to the government’s evidence, on Dec. 17, 2011, the defendants and a co-conspirator, who previously pled guilty in this case, devised a plan to rob and assault the victim, Kevin Blackwell, Jr., 20. Proctor drove Williams, Jackson, and the co-conspirator to the 900 block of Burns Street SE, and the co-conspirator lured the victim outside. Armed with a knife and brass knuckles, Williams and Jackson got out of the car and waited to ambush Mr. Blackwell. Proctor and the co-conspirator kept the car idling nearby.
At about 10:30 p.m., when Mr. Blackwell came into sight, Williams and Jackson chased him down the street. Mr. Blackwell tripped and fell to the ground, and Williams and Jackson attacked him with the knife and brass knuckles. Proctor drove the car to the location where the victim fell, got out of the car, and joined in the attack. Jackson stabbed the victim in the chest. During the attack, Mr. Blackwell was able to call 911 on his cell phone and the robbery and murder were captured on the 911 call.
The defendants took Mr. Blackwell’s cell phone and North Face jacket and fled the area. Proctor drove the defendants and the co-conspirator away from the scene and back into Maryland. The next day, the victim’s cell phone and North Face jacket were discovered in Proctor’s bedroom.
During the investigation into the murder, both Proctor and Williams contacted the co-conspirator and asked the co-conspirator to mislead law enforcement by blaming the other for the murder. Williams also threatened the co-conspirator if the co-conspirator “snitched.”
In announcing the sentences, U.S. Attorney Machen praised the work of the detectives, officers, and crime scene technicians who investigated the case for the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Ethel Gregory, Marian Russell, and Sandra Lane; Lead Paralegal Sharon Newman; Victim/Witness Advocate Tamara Ince, and Criminal Investigator John Marsh. Finally, U.S. Attorney Machen recognized Assistant U.S. Attorneys Stephen Gripkey and Kimberley Nielsen, who investigated and prosecuted the case.
13-065Three Defendants Plead Guilty in $14 Million Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula Reid, Special Agent in Charge, U.S. Secret Service, Matthew Boyd, Chief, Miami Gardens Police Department, and Larry Gomer, Chief, North Miami Beach Police Department, announce that defendants Serge St-Vil, 61, of Miami, Muller Pierre, 62, of North Miami Beach, and Finshley Fanor, 34, of Lauderhill, pled guilty today for their participation in a stolen identity tax refund scheme that resulted in the submission of approximately $14 million in fraudulent refund claims.
St-Vil pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Sentencing for St-Vil is scheduled for May 17, 2013 at 8:30 a.m. before U.S. District Judge Robert N. Scola. At sentencing, the defendant faces a maximum possible statutory term of imprisonment of up to 22 years.
Pierre pled guilty to wire fraud, in violation of Title 18, United States Code, Section 1343. Sentencing for Pierre is scheduled for May 21, 2013 at 8:30 a.m. before Judge Scola. At sentencing, the defendant faces a maximum possible statutory term of imprisonment of up to 20 years.
Fanor pled guilty to conspiracy to defraud the government with respect to claims in violation of Title 18, United States Code, Section 286. Sentencing for Fanor is scheduled for May 22, 2013 at 8:30 a.m. before Judge Scola. At sentencing, the defendant faces a maximum possible statutory term of imprisonment of up to 10 years.
According to the plea documents filed with the court, in 2010, the defendants were involved in a scheme to file fraudulent and unauthorized tax returns seeking refunds. During the course of the scheme, more than 5,000 fraudulent and unauthorized returns were submitted to the IRS seeking over $14 million in refunds. Nearly all of these returns were submitted in the names of deceased persons. St-Vil was responsible for the filing of thousands of these returns using an Electronic Filing Identification Number obtained by Fanor.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the IRS-CI, the U.S. Secret Service, the Miami Gardens Police Department, and the North Miami Beach Police Department. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
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.
Tallahassee Woman Indicted in False Tax Return SchemeRead the Press Release
TALLAHASSEE, FLORIDA – Rose Martine Vernet, 34, of Tallahassee, was arraigned today on a five-count indictment charging conspiracy to defraud the United States, conversion of income tax refund checks, mail fraud, and aggravated identity theft. The indictment was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The indictment alleges that between February 2011 and January 2013, Vernet was part of a conspiracy to file fraudulent federal income tax returns seeking more than $350,000 tax refunds. The conspirators filed the returns in the names of individuals, both living and deceased, whose identities had been stolen. The indictment alleges that Vernet sold eight fraudulently obtained refund checks and provided the buyer with the personal identifying information of the victims to make the checks easier to negotiate. In selling the checks, Vernet is alleged to have told the buyer that the taxpayers were “dead people,” and that “no one will be able to report nothing.”
If convicted, Vernet faces up to ten years in prison on each of the conspiracy and conversion charges, up to twenty years in prison on the mail fraud charge, and a mandatory consecutive two- year term of imprisonment for identity theft. Trial is scheduled for April 8, 2013.
This case was investigated by the Internal Revenue Service – Criminal Investigations, the United States Secret Service, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Michael T. Simpson is prosecuting this case.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
State Employee Among Those Indicted for Marriage Fraud ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a state employee is among three persons indicted for their roles in a conspiracy to commit marriage fraud in order to evade immigration laws.
Oleksandr Nikolayevich Druzenko, also known as “Alex” or “Sasha,” 32, of Jefferson City, Mo., Patricia Anne Ewalt, 60, of El Paso, Texas, and Darya Chernova, 38, of Chandler, Ariz., were charged in a four-count indictment returned under seal by a federal grand jury in Jefferson City on Oct. 3, 2012. The indictment was unsealed and made public today following Druzenko’s arrest and initial court appearance.
Druzenko, who is employed at the Missouri Office of Administration in Jefferson City, is a Ukrainian national who entered the United States on a student visa in August 2004 and attended college in Missouri and elsewhere. Druzenko remains in federal custody pending a detention hearing.
According to the indictment, Druzenko and Ewalt (a U.S. citizen) were married on June 22, 2007, for the sole purpose of allowing Druzenko to remain in the United States. Under his student visa, Druzenko would have had to depart the United States within 60 days after graduation. Because of his marriage to Ewalt, Druzenko obtained lawful permanent resident status on Jan. 2, 2008.
Chernova, a friend of Druzenko’s, is also a Ukrainian who entered the United States on a student visa. In 2005 and 2006, the indictment says, she enlisted a U.S. citizen to marry her so that she could remain in the United States. She and another person (who is not identified in the indictment) allegedly assisted Druzenko in early 2007 to find a U.S. citizen to marry him so that he could remain in the United States and attempt to gain permanent resident status and potentially U.S. citizenship. They approached several persons, the indictment says, including one person with whom Druzenko procured a marriage license but who then declined to enter the sham marriage.
In March 2007, Druzenko was introduced to Ewalt. Chernova and at least one other person allegedly enlisted Ewalt to marry Druzenko so he could remain in the United States.
Druzenko, Ewalt and Chernova are each charged with participating in a conspiracy to commit marriage fraud in order to evade immigration laws.
In addition to the conspiracy, Druzenko and Ewalt are charged together in one count of marriage fraud and two counts of making false statements on immigration forms.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and U.S. Citizenship and Immigration Services.
Stamford Woman Sentenced to Two Years in Federal Prison for Role in Tax Fraud and Identity Theft SchemeRead the Press Release
February 22, 2013David B. Fein, United States Attorney for the District of Connecticut, today announced that DAMARIS PERALTA, 45, of Stamford, was sentenced today by Senior United States District Judge Alfred V. Covello in Hartford to 24 months of imprisonment, followed by three years of supervised release, for her involvement in a tax fraud and identity theft scheme.
According to court documents and statements made in court, between October and December 2010, PERALTA, Hector Medina and others were involved in a conspiracy through which they obtained at least 35 U.S. Treasury income tax refund checks by filing fraudulent tax returns, with false W-2 forms attached, on behalf of citizens of Puerto Rico without their knowledge or consent. As part of the scheme, Matilde Fabian-Pichardo used her position as a bank teller in Stamford to cash the fraudulent checks presented to her by Medina and others by using the legitimate accounts of bank customers. Medina kept the majority of the proceeds of the scheme and paid PERALTA and others for their assistance.
This scheme resulted in a loss of approximately $185,000 to the Internal Revenue Service. In addition, members of the conspiracy cashed fraudulently obtained state tax refund checks from New York and North Carolina, resulting in an additional loss of approximately $13,000.
PERALTA was ordered to pay, jointly and severally with her co-defendants, restitution in the amount of $198,425.57.
PERALTA has been detained since May 23, 2012. On October 24, 2012, she pleaded guilty to one count of conspiracy to defraud the Internal Revenue Service.
Medina and Fabian-Pichardo also have pleaded guilty. On October 2, 2012, Medina was sentenced to 27 months of imprisonment. Fabian-Pichardo awaits sentencing.
This investigation is being conducted by the Internal Revenue Service – Criminal Investigation, U.S. Secret Service, U.S. Postal Inspection Service, Greenwich Police Department, Stamford Police Department and the Connecticut Financial Crimes Task Force.
The case is being prosecuted by Assistant United States Attorneys Douglas Morabito and Ndidi Moses.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]St. Johns County Man Convicted in Methamphetamine CaseRead the Press Release
Jacksonville, FL - Yesterday, a federal jury found Frank Higginbotham (36, Hastings) guilty of one count of conspiracy to manufacture methamphetamine and one count of distribution of methamphetamine. For the conspiracy offense, Higginbotham faces a mandatory minimum sentence of 10 years, up to life in federal prison. He faces up to 20 years in federal prison for the distribution charge. A sentencing hearing has been scheduled for June 3, 2013. Higginbotham was indicted on August 2, 2012.
According to testimony and evidence presented at trial, Higginbotham manufactured and sold methamphetamine at various locations in St. Johns County. During the conspiracy, methamphetamine users gave Higginbotham boxes of medication containing pseudoephedrine in exchange for methamphetamine. Pseudoephedrine, which is an ingredient in many cold and allergy medications, is the primary ingredient needed to manufacture methamphetamine. On February 13, 2012, Higginbotham sold methamphetamine to an undercover Drug Enforcement Administration (DEA) agent.
This case was investigated by the Drug Enforcement Administration and the St. Johns County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
St. Clair County Women Sentenced for Fraud on the Medicaid Home Services ProgramRead the Press Release
Lillie Vaughn, 56, of Cahokia, IL, a beneficiary of the Illinois Medicaid Home Services program, and Vickie Deal, 46, of Madison, IL, her personal assistant under the program paid by the State of Illinois, were sentenced in the District Court in East St. Louis, IL, on one count of making False Statements related to Health Care Matters, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Each woman was sentenced to three years on probation, a $100 special assessment, and ordered to pay restitution in the total amount of $3,094.88 to the State of Illinois and to the United States Center for Medicare and Medicaid Services. Vaughn and Deal had previously pled guilty to defrauding the Illinois Department of Human Services (DHS) Home Services Program, a Medicaid Waiver Program designed to prevent the unnecessary institutionalization of individuals who may instead be satisfactorily maintained at home at a lesser cost to the State. Each admitted making a materially false statement in connection with the delivery of and payment for health care services by reporting on a Home Services Time Sheet sent to the Illinois Department of Human Services, Office of Rehabilitation Services, that from July 1 through July 15, 2011, that Deal had performed and that Vaughn had received 48 hours of personal assistant services, even though both knew that Deal did not perform any personal assistant services on these days because Deal was incarcerated.
The case was investigated by agents of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) and the Illinois State Police, Medicaid Fraud Control Bureau (MFCB) located in Collinsville, IL. This case was prosecuted by Assistant U.S. Attorney Michael J. Quinley.
Six Convicted in Cocaine Trafficking ConspiracyRead the Press Release
Evidence Gathered from Federal Wiretaps Uncovers Sophisticated Cocaine Enterprise
Montgomery, Alabama - George L. Beck, Jr., United States Attorney for the Middle District of Alabama, announced that six people were convicted by a jury in federal district court of conspiring to distribute powder cocaine and cocaine base. Defendant William Jerome Davis was also found guilty of money laundering. The six defendants convicted are:
Willie Jerome Davis, a.k.a. “Mobey”, age 52, of Elmore, Alabama;
Eulanda Lashade Trimble, a.k.a. “Yo Yo”, age 33, of Montgomery, Alabama;
Clifton Pettus, a.k.a. “Biscuit”, age 33, of Montgomery, Alabama;
Robert Marshall, a.k.a. “Big Daddy”, age 39, of Montgomery, Alabama;
William James Reese, age 38, of Deatsville, Alabama; and
Eric Orlando Reese, age 38, of Montgomery, Alabama.All defendants were found guilty after a two and half week trial before Chief United States District Judge W. Keith Watkins.
Evidence introduced at trial showed a sophisticated drug trafficking conspiracy involving multi-kilograms of powder cocaine. This conspiracy ranged from Autauga, Elmore, and Montgomery counties. Prosecutors introduced evidence gathered from four judicially authorized wiretaps initiated in February 2012 and running through May 2012. These wiretaps uncovered two drug trafficking cells that had joined forces to saturate Autauga, Elmore and Montgomery counties with cocaine. In addition to drug evidence gathered from wiretaps, prosecutors showed evidence of money laundering and unexplained wealth. According to the evidence, Mr. Willie Jerome Davis had at least $500,000 of illicit assets, including real and personal property. After establishing that Davis had very limited legitimate income, the jury was allowed to infer that his “wealth” came from illicit activity – drug trafficking.
United States Attorney George L. Beck, Jr. stated, “I want to thank local law enforcement for the tremendous help they provided to DEA. It is with the cooperation and assistance of local law enforcement, such as the Millbrook Police Department, the Wetumpka Police Department, the Montgomery Police Department and through the Central Alabama Drug Task Force and HIDTA Task Force areas that we are able to prosecute individuals who prey on the weak and feed the drug culture that has become so prevalent in America. In addition to severe prison sentences, our office will seek the forfeiture of cash, personal property and any homes used as means to sell drugs.”
U. S. Attorney Beck specifically would like to acknowledge the hard work and dedication of Assistant U. S. Attorneys Verne H. Speirs, Gray M. Borden and Tommie Brown Hardwick.
DEA Resident Agent in Charge W. Marshall Simons remarked, “These guilty verdicts are a culmination of superior collaborative efforts by DEA Montgomery, the Middle District of Alabama United States Attorney’s Office, the High Intensity Drug Trafficking Area Task Force, FBI, and our other, federal, state and local counterparts. This case sends an undeniable message to drug dealers in the greater Montgomery, Alabama area: your illegal activities are not welcomed here. The verdicts in this case represent the collective and symbolic voice of the fine citizenry in this community who have resolved to partner with us to take back their streets. The men and women of DEA remain steadfast in our commitment to this endeavor.”
At sentencing, some defendants will face mandatory minimum terms of incarceration, including life imprisonment. Other defendants could be sentenced to as much as twenty years’ imprisonment. A sentencing date has yet to be set by the Court.
The following local, state, and federal agencies assisted with this investigation: DEA’s Montgomery Regional Office, the High Intensity Drug Trafficking Area program, Birmingham District Office, DEA Atlanta, DEA New York, DEA’s Special Operations Division, Organized Crime Drug Enforcement Task Force Financial Investigation Team (Atlanta, Ga.), FBI, United States Marshals, Central Alabama Drug Task Force, Office Of The Attorney General, Elmore County Sherriff's Office, Wetumpka Police Department, Montgomery Police Department, Millbrook Police Department, Montgomery County Sherriff's Office, Prattville Police Department, Autauga County Sherriff's Office, Alabama State Police, Alabama Beverage Control, Alabama Bureau of Investigation, Chilton County Sherriff's Office, and The Alabama National Guard.
The case was prosecuted by Assistant U. S. Attorneys Verne H. Speirs, Gray M. Borden, and Tommie Brown Hardwick.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Singapore-Based Shipping Company to Pay $2.2 Million for Covering up Oil PollutionRead the Press Release
Pacific International Lines, a Singapore-based container ship company, was sentenced today in D.C. federal court under the terms of a plea agreement that requires the company to pay $2.2 million in criminal penalties, the Department of Justice announced today. Pacific International Lines previously pleaded guilty to three felony charges that it made false statements to the U.S. Coast Guard and violated the Act to Prevent Pollution from Ships by concealing illegal waste water operations and discharges in a falsified oil record book – a required log in which all overboard discharges must be recorded – and operating a vessel in waters of the United States without a functioning oil water separator (a required pollution control device). The charges are a result of Pacific International Lines illegal operation of the vessel M/V Southern Lily 2 in June 2012.
"Today's sentencing is a noteworthy success for the few federal law enforcement agencies charged with enforcing U.S. and international maritime laws protecting the oceans and natural marine resources both around the remote U.S. Pacific Islands and throughout the vast area of the South Pacific," said Joshua J. Masterson, Special Agent-in-Charge of Coast Guard Investigative Service-Pacific Region. "This case, being the third of its kind since 2011, should send a clear message to those shipping companies and mariners who willfully cut corners and violate the laws enacted to protect the oceans as well as place a much needed spotlight on this region of the South Pacific."
According to the plea agreement, including a joint factual statement, the company operated the vessel Southern Lily 2 in American Samoa. On June 22, 2012, the vessel was boarded by the U.S. Coast Guard for a routine inspection. During the inspection the Coast Guard discovered that the ship’s oil water separator was not functioning. The Coast Guard learned that the device had not been functioning for several months and, at the direction of the chief and second engineer, the oily waste water had been being discharged overboard in violation of international law. The illegal discharges and the fact that the oil water separator did not function was not entered in the ship’s oil record book as required by federal law.
Additionally, under the terms of the plea agreement, Pacific International Lines was placed on probation for three years, during which time it must operate under the terms of a government-approved Environmental Compliance Plan. The plan includes review by an independent auditor of any of Pacific International Lines ships—including the Southern Lily 2—that trade in the United States.
In addition to the $2 million criminal fine, the judge also ordered Pacific International Lines to pay $200,000 to support community service projects. The projects will be administered by the National Fish & Wildlife Foundation asnd the National Marine Sanctuary Foundation.
Engine room operations on-board large ocean-going vessels such as the Southern Lily 2 generate large amounts of waste oil and oil contaminated bilge waste. International and U.S. law prohibit the discharge of waste containing more than 15 parts per million oil and without treatment by an oil water separator and oil sensing equipment—a required pollution prevention device. The Act to Prevent Pollution from Ships also requires that all overboard discharges be recorded in an oil record book, which is subject to inspection by the Coast Guard. The waste oil may be incinerated on board the ship or offloaded in port for proper disposal.
In related prosecutions, the second engineer of the Southern Lily 2, Qing Cao, pleaded guilty to a felony information charging him with operating the Southern Lily 2 in Waters of the United States without a functioning oil water separator in violation of the Act to prevent Pollution from Ships. The court sentenced Cao to 36 months of probation and ordered Cao to depart the United States immediately. As a condition of probation, the court ordered Cao not to work on any vessels that call at U.S. ports during the term of his probation.
This investigation was conducted by the Pacific Regional Office of the U.S. Coast Guard Investigative Service Honolulu, Hawaii, and Senior Litigation Counsel Howard P. Stewart of the Justice Department’s Environmental Crimes Section.
Sheffield Man Sentenced to 18 Months in Prison for Scheme Involving ATVsRead the Press Release
Nicholas J. Henry, age 29, of Sheffield, Ohio, was sentenced today to 18 months in prison and ordered to pay restitution in the amount of $220,532.64 as a result of his recent conviction for wire fraud, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.Henry was also ordered to serve a three year period of supervised release following his release from prison and was ordered to pay a $100 special assessment to the Crime Victims’ Fund.
On May 22, 2012, a federal grand jury in Cleveland, Ohio, returned an indictment which charged that from on or about January 1, 2005, through on or about October 15, 2009, Henry knowingly devised a scheme and artifice to defraud, and to obtain money and property by means of false and fraudulent pretenses, representations and promises, and that in executing said scheme and artifice, knowingly caused funds to be transmitted from the victims to Henry by means of interstate wire communications. Henry entered a guilty plea to wire fraud on October 23, 2012.
Henry advertised the sale of certain All Terrain Vehicles (“ATVs”) and scooters via an Internet website, and used the business names “China Vehicle Company LTD” and “Scooter Direct.” China Vehicle Company LTD., and Scooter Direct were not incorporated entities with the Ohio Secretary of State’s Office and were not registered as limited liability companies in Ohio. Henry targeted his solicitations primarily towards automobile dealerships throughout the United States, offering to sell vehicles such as ATVs and scooters manufactured in China at a “discounted” price, for resale to the public, according to court documents.
Henry directed the customers to make full or partial payments for the ATVs and scooters by sending wire transfers of funds to his personal bank accounts. Henry would immediately take his full commission upon receiving payment from the automobile dealerships, and prior to receiving the shipment of ATVs and scooters from China, according to court documents.
Despite receiving payment and taking his commission for the transactions, Henry failed to provide ATVs and scooters to the automobile dealerships as agreed. Instead, Henry made repeated excuses to some dealerships for his failure to deliver the merchandise as agreed, and eventually failed to respond to inquiries and complaints from the customers. Despite his inability to deliver ATVs and scooters to the dealerships as promised, Henry nonetheless continued advertising, soliciting additional sales, and entering into sales contracts with additional dealerships throughout the period covered in the indictment.
Between January 1, 2005, and October 15, 2009, Henry received at least 36 wire transfers of funds from the dealerships as payment for ATVs and scooters which HENRY negotiated on behalf of the “China Vehicle Company LTD.,” totaling over $266,000. Henry failed to refund or return payments received for merchandise not delivered to the victim dealerships, but rather took a 20-25 percent commission immediately upon receipt of the payments. Henry later withdrew, spent and converted to his own use, the funds from the wire transfers initiated by the dealerships totaling over $143,000, according to court documents.
Between September 25, 2008, and October 15, 2009, Henry received wire transfers for “new” orders from victim dealerships totaling approximately $79,644. During this time, Henry made no attempt to secure scooters from China and made no payments to the manufacturer. Instead, Henry used the funds received from the victims to pay personal bills and expenses including rent, car payments, utilities and other personal expenses, according to court documents.
This case was prosecuted by Assistant United States Attorneys Carol M. Skutnik and Robert W. Kern. The case was investigated by the Elyria Office of the Federal Bureau of Investigation.
Seventeen Defendants Facing Federal Narcotics or Firearms Charges Alleging Nexus of Guns and Drugs in ChicagoRead the Press Release
CHICAGO —Seventeen defendants are facing federal narcotics and/or firearms charges
which demonstrate again the intersection of drugs and illegal gun possession in Chicago. An
investigation by the Chicago Police Department and the U.S. Drug Enforcement Administration
of alleged drug-trafficking by a father and son that started less than a year ago, has resulted in
federal narcotics charges against them, two alleged suppliers, at least eight alleged customers,
and others, as well as the seizure of more than 14 kilograms of cocaine, three kilograms of
heroin, 15 firearms, and approximately $320,000.The investigation moved up and down an alleged drug supply ladder as a result of
Chicago police officers and DEA agents using federal wiretaps on at least a dozen phones to
intercept conversations and deliveries of narcotics and firearms.In a telephone conversation on Nov. 26 last year, defendant DWYANE PAYNE, also
known as “Murder,” allegedly told an individual that he needed a gun because he was going to a
memorial service at North Central Park Avenue and West Division Street, where rival gang
members would be present. Based on that call and others that followed, police and agents set up
surveillance at the intersection and, about an hour later, approached the man who Payne had been
talking to as he was standing next to a 2005 Chrysler 300. The individual ran but was quickly
apprehended and gave permission to search his car. Inside, two TEC-9 semi-automatic pistols
with extended magazines were found on the floor of the backseat – one was loaded with 30 live
rounds and the other, which had a defaced serial number, was loaded with approximately 28 live
rounds, including one in the chamber.Payne’s brother, MARSHALL PAYNE, was also indicted yesterday for being a
previously convicted felon in illegal possession of both loaded TEC-9s.Four days later, on Nov. 30, 2012, after listening to other intercepted conversations,
investigators stopped a vehicle in the 7400 block of West Waveland Avenue, arrested the driver
– an alleged drug courier, LUCIO CUEVAS – and seized two kilograms of cocaine and a
handgun later found in a trap compartment in the vehicle. Believing that the cocaine was
destined for delivery to the nearby residence of JOHNNY MENDEZ, located in the 3700 block
of North Olcott Avenue, authorities later that day arrested Mendez and his father, JOHNNY
CHAPARRO, who also lived nearby in the 3700 block of North Oketo Avenue. Investigators
searched Mendez’s home and seized two kilograms of heroin, a handgun and approximately
$209,130.Authorities first began investigating alleged wholesale cocaine and heroin distribution by
Chaparro and Mendez in 2012. The investigation resulted in charges against them, as well as
two of their alleged suppliers, JOSE ARGUIJO and ANTONIO VALENCIA-PANTOJA, and at
least eight alleged customers, ANTHONY MADISON, PAUL JENKINS, LAKICHA WHITE,
DISLSON ROCHA, JOEL MELENDEZ, DWAYNE PAYNE, DELILAH MARTINEZ, and
IRIS CORREA. The charges allege that Chaparro and Mendez obtained kilogram quantities of
narcotics from Arguijo on Sept. 3 and Nov. 26, 2012, and from Valencia-Pantoja on Nov. 30,
including the cocaine that was seized on those dates.Following the arrests of Chaparro, Mendez, and Cuevas on Nov. 30, and four other
defendants last week, six additional defendants were arrested on Wednesday, while two others
are in state custody, and two are fugitives.All 17 defendants were charged in eight separate indictments returned yesterday by a
federal grand jury. Most of the defendants either have been ordered detained or have detention
hearings next week in U.S. District Court.One indictment, against Chaparro, Mendez and seven others, seeks forfeiture of
approximately $758,729 in alleged narcotics proceeds, including approximately $236,000 that
was seized during the investigation. It also seeks forfeiture of Chaparro and Mendez’s
residences, and an automobile. Other indictments seek forfeiture of smaller amounts of cash, as
well as another vehicle and multiple firearms.“Anyone who has paid attention over the last 25 years knows that these charges are just
the latest result of the remarkable teamwork among the Chicago Police Department, DEA and
other federal law enforcement agencies,” said Gary S. Shapiro, United States Attorney for the
Northern District of Illinois. “While none of these defendants are accused of acts of violence;
nevertheless, narcotics and firearms prosecutions such as these are effective in helping reduce
violence in Chicago, and we will continue to work closely with the CPD to achieve that goal.”
Mr. Shapiro praised the dedication of the Chicago Police Department and the DEA for the
disruption of this alleged narcotics distribution activity.“Guns and drugs remain the greatest underlying source of our city’s violence. The
Chicago Police Department will continue to attack the pervasiveness of illegal weapons and
narcotics in our communities from every angle,” said Garry F. McCarthy, Superintendent of the
Chicago Police Department. “Focused, collaborative efforts with our federal partners send a
clear message that those responsible for driving the related violence in our communities will be
found and held accountable.”Jack Riley, Special Agent-in-Charge of the DEA’s Chicago office, said: “The indictments
of these 17 individuals yesterday should serve as a notice to criminal networks in Chicago that
allegedly traffic in narcotics and weapons that the Drug Enforcement Administration and the
Chicago Police Department stand shoulder to shoulder in our commitment and we will use every
available legal avenue to make our city safer.”The investigation was conducted under the umbrella of the U.S. Organized Crime Drug
Enforcement Task Force (OCDETF).Details of the separate indictments follow:
United States v. Chaparro, et al., 12 CR 969
JOHNNY CHAPARRO, 50; his son, JOHNNY MENDEZ, aka “Trigger,” 29; JOSE
ARGUIJO, 35; ANTHONY MADISON, 47; PAUL JENKINS, 63; LAKICHA WHITE, 36;
DILSON ROCHA, 58; JOEL MELENDEZ, 2; and DWAYNE PAYNE, 29, all of Chicago
except Melendez, who is from Milwaukee, were charged with various narcotics offenses in 19-
count indictment. Seven of the nine defendants are in custody; Arguijo and Melendez are
fugitives.Mendez was charged with being a felon-in-possession and also possessing a firearm – a
.40 caliber semi-automatic pistol – while committing a drug offense. The felon-in-possession
count carries a maximum penalty of 10 years in prison, while the count of possessing a firearm
during a drug offense carries a mandatory minimum sentence of five years to a maximum of life
in prison, which must be served consecutively to any other sentence, if convicted.Chaparro, Mendez, and Arguijo each face a mandatory minimum sentence of 10 years
and a maximum of life in prison and a $10 million fine on the narcotics charges. Madison,
Jenkins, White, Rocha, and Melendez each face a mandatory minimum of five years and a
maximum of 40 years in prison and a $5 million fine on the narcotics charges, if convicted.United States v. Chaparro and Meireles, 13 CR 171
JOHNNY CHAPARRO was charged again, together with MODESTO MEIRELES, aka
“Old Man,” 62, of Chicago, in a six-count indictment for various narcotics offenses.Chaparro and Meireles face a mandatory minimum of five years and a maximum of 40
years in prison and a $5 million fine, if convicted.United States v. Valencia-Pantoja and Cuevas, 13 CR 170
ANTONIO VALENCIA-PANTOJA, 23, and LUCIO CUEVAS, 24, both of Chicago,
were charged together in a three-count indictment for allegedly conspiring to distribute the
cocaine that was seized from Cuevas on Nov. 30, 2012.They each face a mandatory minimum of five years to a maximum of 40 years in prison
and a $5 million fine, if convicted.United States v. Martinez and Correa, 13 CR 157
DELILAH MARTINEZ, 33, and her mother, IRIS CORREA, 57, both of Chicago, were
charged together in an 11-count indictment for allegedly conspiring to distribute narcotics.Martinez was also indicted separately for allegedly being a felon-in-possession of a .357
revolver on July 23, 2012. (United States v. Martinez, 13 CR 173)They each face a man mandatory minimum of five years to a maximum of 40 years in
prison and a $5 million fine, if convicted. Martinez alone faces a maximum penalty of 10 years
in prison if convicted of being a felon-in-possession of a firearm.United States v. Payne, 13 CR 174
United States v. Lopez, 13 CR 154
United States v. Suriano, 13 CR 172Three other defendants were charged separately in single-count indictments for allegedly
being felons-in-possession of firearms. They are: MARSHALL PAYNE, 31, of Chicago, for
allegedly possessing the two TEC-9s on Nov. 26, 2012; CARLOS LOPEZ, aka “Moses,” 34, of
Elmwood Park, for allegedly possessing a .25 caliber semi-automatic handgun on June 8, 2012;
and SALVATORE SURIANO, 25, of Chicago, for allegedly possessing a shotgun on July 31,
2012.They each face a maximum penalty of 10 years in prison if convicted of being a felon-inpossession
of a firearm.In each case, if convicted, the Court must impose a reasonable sentence under federal
statutes and the advisory United States Sentencing Guidelines. The public is reminded that
indictments contain only charges and are not evidence of guilt. The defendants are presumed
innocent and are entitled to a fair trial at which the government has the burden of proving guilt
beyond a reasonable doubt.The government is being represented by Assistant United States Attorneys Erika Csicsila
and Sarah Streicker.Chaparro et al Indictment
Valencia Cuevas Indictment
Chaparro and Mendez Complaint
Arguijo Complaint
San Diego Jury Convicts Four Somali Immigrants of Providing Support to Foreign TerroristsRead the Press Release
SAN DIEGO, CA – A federal jury today convicted four Somali immigrants, including a popular imam at a City Heights mosque, of conspiring to provide material support to the terrorist group al-Shabaab.
The jury found that the four men - Basaaly Saeed Moalin, a cabdriver in San Diego; Issa Doreh, a worker at a money transmitting business that was the conduit for moving the funds; Mohamed Mohamed Mohamud, the imam at a mosque frequented by the city’s immigrant Somali community; and Ahmed Nasiri Taalil Mohamud, a cabdriver from Anaheim – conspired to raise money for the foreign terrorist organization and send it back to Somalia.
During the three-week trial, the United States presented evidence that Moalin, Mohamud, Doreh and Nasir conspired to provide money to al-Shabaab, a violent and brutal militia group in Somalia that engages in suicide bombings, targets civilians for assassination, and uses improvised explosive devices. In February 2008, the U.S. Department of State formally designated al-Shabaab as a foreign terrorist organization.
At trial, the jury listened to dozens of the defendants’ intercepted telephone conversations, including many conversations between defendant Moalin and Aden Hashi Ayrow, one of al-Shabaab’s most prominent leaders who was subsequently killed in a missile strike on May 1, 2008. In those calls, Ayrow implored Moalin to send money to al-Shabaab, telling Moalin that it was “time to finance the Jihad.” Ayrow told Moalin, “You are running late with the stuff. Send some and something will happen.” In the calls played for the jury, Ayrow repeatedly asked Moalin to reach out to defendant Mohamud – the imam – to obtain funds for al-Shabaab.
According to the evidence presented at trial, the defendants conspired to transfer the funds from San Diego to Somalia through the Shidaal Express, a now-defunct money transmitting business in San Diego.
The United States also presented a recorded telephone conversation in which defendant Moalin gave the terrorists in Somalia permission to use his house in Mogadishu, Somalia, telling Ayrow that “after you bury your stuff deep in the ground, you would, then, plant the trees on top.” Prosecutors argued at trial that Moalin was offering a place to hide weapons.
When Moalin cautioned, however, that the house could be easily identified from afar, Ayrow replied: “No one would know. How could anyone know, if the house is used only during the nights?”
According to United States Attorney Laura E. Duffy, the prosecution was the result of a lengthy investigation by the San Diego Joint Terrorism Task Force. She said she is pleased with the verdict. “Justice was served today in San Diego,” Duffy said. “The jury clearly did not accept defense claims that months of intercepted conversations about bullets, bombings and Jihad were actually conversations about their charitable efforts for orphans and schools.
“This case proves that our efforts to detect and disrupt terrorist financing – and prevent the violence that goes along with it - has paid off. The United States Attorney’s Office is dedicated to investigating and vigorously prosecuting any persons who provide support or resources to terrorists or foreign terrorist organizations. I commend the hard work and dedication of San Diego’s Joint Terrorism Task Force in this case.”
FBI Special Agent in Charge Daphne Hearn commented, "While the FBI is not concerned with the legal transfer of funds to family, friends and charities overseas, when individuals provide material support to designated terrorists or terrorist organizations, the FBI and our Joint Terrorism Task Force partners will bring all resources to bear, to investigate these plots with a common goal of protecting all Americans from those who wish to do us harm.”
“These convictions illustrate the importance of collaboration when promoting national security,” said Derek Benner, special agent in charge for ICE Homeland Security Investigations in San Diego. “Protecting our nation’s security is our top priority, and I commend all of the federal law enforcement partners who worked tirelessly to make this a successful investigation. ”
Al-Shabaab is a terrorist organization based in Somalia, with objectives including the overthrow of the Transitional Federal Government (TFG), the elimination of African Union support for the TFG. Al-Shabaab has engaged in, and used, violence, intimidation and acts of terrorism, including suicide bombings, in Somalia and elsewhere to further its objectives.
Here’s a breakdown of the verdict:
Defendant Moalin: Convicted of five counts including conspiracy to provide material support to terrorist, conspiracy to provide material support to foreign terrorist organization, conspiracy to launder monetary instruments, providing material support to terrorists and providing material support to foreign terrorist organization
Defendant Mohamed Mohamed Mohamud: Convicted of four counts including conspiracy to provide material support to terrorist, conspiracy to provide material support to foreign terrorist organization, conspiracy to launder monetary instruments, and providing material support to foreign terrorist organization
Defendant Issa Doreh: Convicted of four counts including conspiracy to provide material support to terrorist, conspiracy to provide material support to foreign terrorist organization, conspiracy to launder monetary instruments, and providing material support to foreign terrorist organization
Defendant Ahmed Nasir Taalil Mohamud: Convicted of threer counts including conspiracy to provide material support to terrorist, conspiracy to provide material support to foreign terrorist organization, and conspiracy to launder monetary instruments
Sentencing was set for May 16 at 9 a.m. before U.S. District Judge Jeffrey T. Miller.
This case was prosecuted in federal court in San Diego by Assistant United States Attorneys William Cole and Caroline Han and Department of Justice Trial Attorney Steven Ward. This case was investigated by the San Diego Joint Terrorism Task Force; the Federal Bureau of Investigation; the Department of Homeland Security, Immigration and Customs Enforcement; and the Department of Homeland Security, Customs and Border Protection.
Criminal Case No. 10cr4246-JM DEFENDANTS Criminal Case No. 10-CR-4246-JM Basaaly Saeed Moalin
Mohamed Mohamed Mohamud
Issa Doreh
Ahmed Nasir Taalil Mohamud SUMMARY OF CHARGESCount 1 (all defendants): Title 18, United States Code, Section 2339A(a) - Conspiracy to Provide Material Support to Terrorists; Maximum penalties: 15 years in prison and a $250,000 fine.
Count 2 (all defendants): Title 18, United States Code, Section 2339B(a)(1) - Conspiracy to Provide Material Support to Foreign Terrorist Organization; Maximum penalties: 15 years in prison and a $250,000 fine.
Count 3 (all defendants): Title 18, United States Code, Section 1956(h) - Conspiracy to Launder Monetary Instruments; Maximum penalties: 20 years in prison and a $500,000 fine.
Count 4 (Basaaly Moalin): Title 18, United States Code, Section 2339A(a) - Providing Material Support to Terrorists; Maximum penalties: 15 years in prison and a $250,000 fine. Count 5 (defendants Basaaly Moalin, Mohamed Mohamed Mohamud, and Issa Doreh): Title 18, United States Code, Section 2339B(a)(1) - Providing Material Support to Foreign Terrorist Organization; Maximum penalties: 15 years in prison and a $250,000 fine.
PARTICIPATING AGENCIESSan Diego Joint Terrorism Task Force
Federal Bureau of Investigation Department of Homeland Security, Immigration and Customs Enforcement
Department of Homeland Security, Customs and Border ProtectionSan Bernardino Man Pleads Guilty to Distributing MethamphetamineRead the Press Release
OAKLAND - Hassan Johnny Valenzuela pleaded guilty in federal court in Oakland on Wednesday, February 20, 2013, to conspiracy to distribute methamphetamine and possession with the intent to distribute methamphetamine, United States Attorney Melinda Haag announced.
In pleading guilty, Valenzuela admitted to possessing with the intent to distribute 50 grams or more of methamphetamine and agreeing with another individual to do so.
According to the plea colloquy, when Valenzuela was arrested on September 5, 2012, he had approximately 4.4 kilograms of crystal methamphetamine inside a speaker box in the trunk of a vehicle that he was driving. According to the plea colloquy, Valenzuela had agreed with his co-conspirator to distribute 50 grams or more of methamphetamine at a distribution point in Oakland, California.
Valenzuela, 22 years old, of San Bernardino, California, was indicted by a federal grand jury on September 27, 2012. He was charged with one count of conspiracy to distribute and possess with the intent to distribute methamphetamine in violation of Title 21, United States Code Sections 846, 841(a)(1) and 841(b)(1)(A)(viii), and possession with the intent to distribute methamphetamine in violation of Title 21, United States Code Sections 841(a)(1) and 841(b)(1)(A)(viii). Valenzuela pleaded guilty to both counts without a plea agreement.
At the conclusion of his guilty plea, Valenzuela was remanded to the custody of the United States Marshal. The sentencing of Valenzuela is scheduled for May 8, 2013, before the Honorable Phyllis J. Hamilton in Oakland. The maximum statutory penalty for each count in violation of 21 U.S.C. §841(a)(1) and 846 is life imprisonment and a fine of $10,000,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Chinhayi Cadet is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Jacquelyn Lovrin. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Oakland Police Department.
Ross T. Pattison 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 21, 2013, before Chief U.S. District Judge Richard F. Cebull, ROSS T. PATTISON, a 49-year-old resident of Hardin, appeared for sentencing. PATTISON was sentenced to a term of:
- Prison: 20 months
- Special Assessment: $100
- Forfeiture: 625 West 1st Street, Hardin, MT
- Supervised Release: 3 years
PATTISON was sentenced in connection with his guilty plea to maintaining a 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:
In approximately March of 2011, law enforcement received a complaint that PATTISON and Travis Birdinground 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. Law enforcement also determined that Birdinground worked for PATTISON delivering marijuana. Birdinground also possessed a medical marijuana card and was a caregiver for only one patient. Law enforcement observed Birdinground leave PATTISON's residence numerous times a night and make trips to several residences within Hardin. Law enforcement also observed several individuals drive to PATTISON's residence to purchase marijuana from 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, Jason Gierke, Birdinground, and another individual.
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 Gierke, Birdinground, and another individual would deliver marijuana to the buyers. Several witnesses will testify that after Ross PATTISON's house was searched, all deliveries were then made by Strecker or the others.
During an interview with law enforcement on April 22, 2011, Birdinground admitted his role in the conspiracy to distribute marijuana from PATTISON's and Strecker's Hardin residences. The marijuana that he possessed on April 22, 2011, was marijuana that he was delivering for PATTISON and Strecker. The marijuana was ordered through PATTISON. Birdinground would pick up the marijuana from PATTISON and give PATTISON the money after the transaction. PATTISON and Strecker paid Birdinground $800 every two weeks.
During an interview with law enforcement on May 25, 2011, Gierke stated that he helped set up the greenhouses and watering system as part of the marijuana grow operation at Strecker's Hardin residence. Gierke obtained his marijuana from PATTISON and Strecker. 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.
Gierke, Strecker, and Birdinground pled guilty to federal charges.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that they will likely serve all of the time imposed by the court. In the federal system, they do 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, the Montana Division of Criminal Investigation.
Residential Care Facility Exec Sentenced to Probation with Confinement for Failing to File Tax ReturnsRead the Press Release
PITTSBURGH, Pa. - A resident of Allegheny County has been sentenced in federal court to five years probation, the first three months to be served at a Community Corrections Center and the following six months to be served in home confinement, on his conviction of willfully failing to file an income tax return, United States Attorney David J. Hickton announced today.
United States District Judge Joy Flowers Conti imposed the sentence on William J. Dugan, Jr.
According to information presented to the court, on or before Sept. 15, 2006, Dugan, formerly the Vice President, Secretary and Treasurer of Dugan’s Residential Care, Inc., a business which operated six residential care facilities for mentally handicapped adults in Allegheny and Butler Counties, and based in Cheswick, Pennsylvania, failed to file a corporate income tax return for the calendar year 2005, as required by law, resulting in a tax loss to the Internal Revenue Service of $128,706. Dugan and his estranged wife, Maureen Dugan, the CEO and Executive Director of Dugan's Residential Care, Inc., failed to file both corporate and personal tax returns for the years 2003 to 2006, resulting in a total loss of approximately $320,000. Maureen Dugan previously entered a plea of guilty to a similar charge and was sentenced to serve a five-year term of probation.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service for the investigation leading to the successful prosecution of Dugan.
Pittsburgh Man Made False Statements on Forms to Obtain Siblings' Life Insurance BenefitsRead the Press Release
PITTSBURGH, Pa. - A resident of Allegheny County pleaded guilty in federal court to a charge of false statements, United States Attorney David J. Hickton announced today.
William R. Cook, Sr., 34, of Pittsburgh, Pa., pleaded guilty to one count before United States District Judge Terrence F. McVerry.
According to information presented to the court, Clarence Williams, the father of the defendant, was a Postal Service employee who had Federal Employees Group Life Insurance (FEGLI). Mr. Clarence Williams designated his four children as his beneficiaries to each receive an equal share of the payout. Without the knowledge or consent of his siblings, William Cook filled out federal forms purporting to be his sister and two brothers. The forged forms directed that the payout monies all be sent to the defendant's address. Cook collected and spent the monies intended for his three siblings. When the fraud was discovered, the government paid each of the three siblings $39,102.59 thus incurring a loss in the total amount of $117,307.77.
Judge McVerry scheduled sentencing for June 28, 2013. The law provides for a maximum total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
The U.S. Office of Personnel Management, Office of Inspector General, conducted the investigation leading to the indictment in this case.
Pennsylvania Jeweler Pleads Guilty to $3 Million Ponzi SchemeRead the Press Release
ALEXANDRIA, Va. – Matthew James Addy, 34, of Lancaster, Penn., pleaded guilty today to securities fraud charges for running a $3 million Ponzi scheme that involved the fake purchase and resale of wholesale jewelry and loose precious stones.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by United States District Judge James C. Cacheris.
Addy faces a maximum penalty of 20 years in prison when he is sentenced on May 10, 2013.
According to court records, Addy owned Edward J. & Company, which operated a retail jewelry store in Lancaster called La Porte Jewelers. In 2010, Addy began recruiting individuals to invest in promissory notes purportedly linked to transactions involving wholesale jewelry and loose precious stones, which would be purchased through Addy’s businesses and resold to retail jewelers for a profit. Addy ultimately recruited more than 40 investors from throughout the United States, including within the Eastern District of Virginia, and Europe, and obtained more than $3 million in invested funds. Addy recruited many of the victim investors from within religious groups with which he was associated and used the affiliations to gain their trust.
The investment scheme was a fraud. Addy never conducted any of the contemplated wholesale jewelry transactions, and Addy used the vast majority of the invested funds on unrelated business and personal expenses. Approximately $670,000 was paid back out to investors during the course of the fraud as supposed profits on their investments and was designed to conceal the fraud and induce further investments in the scheme. Much of these payouts came directly from funds contributed by new investors, known as “Ponzi” payments.
This case was investigated by the FBI’s Washington Field Office. Assistant United States Attorney Paul J. Nathanson is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Palm Beach County Residents Arrested for Sex Trafficking of MinorsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced that defendants Dontavious M. Blake, 32, and Tara Jo Moore, 26, both of Palm Beach County, were charged in a federal criminal complaint with sex trafficking of minors. Pre-trial detention hearings for Blake and Moore are scheduled for Tuesday, February 26, 2013.
More specifically, the complaint charges Blake and Moore with sex trafficking of children and conspiracy to commit sex trafficking of children, and inducing a minor to engage in commercial sex act, in violation of Title 18, United States Code, Sections 1591, 1594 and 2422, respectively. If convicted, Blake and Moore face a maximum possible statutory sentence of up to life in prison.
This case stemmed from an investigation into the production of child pornography. According to the allegations in the complaint affidavit, a victim revealed that she had engaged in prostitution in the summer of 2011, at the age of 15. The victim stated that she had worked in hotels in the Palm Beach County area and identified Blake and Moore as her pimp and his girlfriend. Blake would post online escort advertisements, with photographs of the victim, on Backpage.com listing a phone number belonging to him. Moore would allegedly answer the calls from clients and negotiate a price for prostitution services and schedule a “date.” Once the price had been agreed upon, Blake would contact the minor and drive her to location for the “date.” At the conclusion of the date, the victim would pay a portion of the proceeds to Blake, including payment for a portion of the cost of the hotel room.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Lothrop Morris.
A complaint is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Attachments:
Complaint (PDF)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.
Owner of "Clean Green Fuel" Sentenced to over 12 Years in Scheme to Violate EPA Regulations and Sell $9 Million in Fradulent Fuel CreditsRead the Press Release
Rodney Hailey Falsely Claimed His Company Produced 23 Million Gallons of Renewable FuelBaltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Rodney R. Hailey, age 34, of Perry Hall, Maryland, today to 151 months in prison followed by three years of supervised release in connection with a scheme in which he sold $9 million in renewable fuel credits which he falsely claimed were produced by his company, Clean Green Fuel, LLC. Judge Quarles enhanced Hailey’s sentence upon finding that he obstructed justice by concealing, selling and spending assets that were protected by court order. Judge Quarles also ordered that Hailey pay restitution of $42,196,089.78 to over 20 companies, and forfeit $9.1 million in proceeds of the fraud including cars, jewelry, his home and bank accounts already seized by the government in partial satisfaction of such $9.1 million judgment.
Hailey was convicted on June 25, 2012, of eight counts of wire fraud, 32 counts of money laundering and two counts of violating the Clean Air Act. He has been detained since the guilty verdict.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge David G. McLeod, Jr. of the Environmental Protection Agency’s (EPA) Criminal Investigation Division; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Thomas Muskett of the EPA Office of Inspector General - Office of Investigations - Washington Field Office; U.S. Marshal for Maryland Johnny Hughes; and Chief James W. Johnson of the Baltimore County Police Department.
“Any government program that is based on trust is vulnerable to a fraudster like Rodney Hailey,” said U.S. Attorney Rod J. Rosenstein. “The only thing Rodney Hailey’s ‘Clean Green Fuel’ business produced was the dirty money he used to fund his lavish lifestyle.”
“Congress created the Renewable Fuel Standard program to ensure that transportation fuel sold in this country contains a requisite amount of renewable fuel to promote a cleaner and healthier environment,” said David G. McLeod, Jr., Special Agent in Charge of EPA’s criminal enforcement program in Maryland. "The joint investigation into the defendant’s so-called biodiesel operation revealed no evidence that biofuel ever existed. Today’s sentence demonstrates that those who blatantly thumb their nose at the law in order to make money illegally will be prosecuted.”
“Ultimately, Mr Hailey’s greed has deprived him of his freedom as well as his personal property,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “Today’s sentence reaffirms that IRS Criminal Investigation, in cooperation with our law enforcement partners, is committed to ‘following the money trail’ to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”
According to evidence presented at the six day trial, Hailey owned Clean Green Fuel, LLC, located in the Baltimore area. Hailey registered Clean Green Fuel with the EPA as a producer of bio-diesel fuel, a motor vehicle fuel derived from renewable resources. In order to encourage the production of renewable fuel and lessen the nation’s dependence on foreign oil, all oil companies that market petroleum in the U.S. are required to produce a given quantity of renewable fuel or to purchase credits, called renewable identification numbers (RINs), from producers of renewable fuels to satisfy their renewable fuel requirements.
Between March 2009 and December 2010, Hailey engaged in a massive fraud scheme, selling over 35 million RINs (representing 23 million gallons of bio-diesel fuel) to brokers and oil companies, when in fact Clean Green Fuel had produced no fuel at all and Hailey did not have a facility capable of producing bio-diesel fuel.
Federal law enforcement agents investigated the scheme after a Baltimore County police detective working with Maryland’s federal financial crimes task force received a report about a large number of luxury cars parked in front of Hailey’s house. The financial crimes task force contacted the EPA’s Criminal Investigation Division and initiated a criminal investigation.
Two civil inspectors from EPA’s Air Enforcement Division visited Clean Green’s headquarters on July 22, 2010, to inspect Hailey’s bio-diesel production facility, in response to a complaint alleging that Clean Green had been selling false RINs. Hailey was not able to provide an exact location for the bio-diesel fuel production facility, nor any records to support claims that Clean Green Fuel had produced bio-diesel fuel. When asked to explain his method of production, Hailey falsely stated that he paid employees and contractors to recover waste vegetable oil from 2,700 restaurants in the “Delmarva” area and bring it to his production facility where he converted it to bio-diesel fuel. Hailey claimed that only the drivers who picked up the oil knew the names of the restaurants, and Hailey could not provide the names of the drivers.
Hailey made over $9.1 million from selling the false RINs. The loss to the traders and major energy companies who purchased Hailey’s false RINs is over $40 million, but the loss also extends to small bio-diesel companies which, as a result of Hailey’s scheme, were unable to sell their RINs and have been forced out of business.
Hailey used the proceeds of the scheme to purchase luxury vehicles, including BMWs, Ferraris, Bentleys, a Mercedes Benz, a Rolls Royce Phantom, a Lamborghini, a Maserati and others, as well as real estate and more than $80,000 in diamond jewelry. In all of these transactions, Hailey generally used cash or checks drawn on accounts he controlled to make the purchase, including a check for $645,330.15 to buy his home in Perry Hall.
For their work in this investigation, United States Attorney Rod J. Rosenstein praised the members of the Maryland Financial Crimes Task Force, including the U.S. Marshals Service, the Baltimore County Police Department and IRS - Criminal Investigation; and the EPA Criminal Investigation Division, U.S. Postal Inspection Service, and EPA Office of Inspector General - Office of Investigations. Mr. Rosenstein thanked Assistant United States Attorneys Tonya N. Kelly and Stefan Cassella, who prosecuted the case.
Oregon Man indicted for flying without Airman's CertificateRead the Press Release
Anchorage, Alaska B U.S. Attorney Karen L. Loeffler announced today that an Oregon resident was indicted by the federal grand jury sitting in Anchorage, Alaska, for flying without a valid airman’s certificate. The offenses charged occurred in Alaska from April 1, 2010, through June 10, 2010.
Mark Alan McAlister, age 49, of Medford, Oregon was charged by the federal grand for flying a Piper Supercub, N226T, as a pilot in command when he lacked the necessary airman’s certificate authorizing him to serve in that capacity.
The maximum penalty for flying in command as a pilot without being certified is up to three years in prison and a $250,000 fine. An arraignment date has not been set.
Ms. Loeffler commends the Federal Aviation Administration for the investigation of this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and
is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.New Jersey Man Admits to Scamming NunsRead the Press Release
PHILADELPHIA - Adriano Sotomayor, 54, of Margate, New Jersey, pleaded guilty, late today, to 17 counts of wire fraud in connection with a scheme to defraud members of the Dominican Sisters of the Rosary of Fatima (“Sisters of Fatima”), and others, between May 2009 and February 2012. Sotomayor was captured by the FBI Fugitive Squad in Las Vegas, Nevada, on February 27, 2012. He went on the run November 16, 2011, one day after he was indicted.
The defendant launched his scheme by causing an elderly nun to believe that she had been named in a will as the beneficiary of an estate estimated at approximately $2.1 million. In order to lure the elderly nun into this scheme, the defendant caused his victim to believe that the man who notified her about the will was a Catholic priest from New Jersey, and the testator was one of his parishioners. Sotomayor fraudulently induced the elderly nun to begin sending money to him in Atlantic City, New Jersey, by telling her that she needed to pay taxes, processing fees, and various legal fees associated with the fictitious will. He went on to target other victims in Levittown and Philadelphia who initially sent money to him on the elderly nun’s behalf. Sotomayor caused at least 50 victims to send a total of at least $1.3 million from Pennsylvania and elsewhere to him in New Jersey over a two year period. The defendant received wire transfers at the Trump Plaza Hotel and Casino, the Showboat Hotel and Casino, and Bally’s Park Place, among other places.
U.S. District Court Judge Eduardo C. Robreno scheduled a sentencing hearing for June 12, 2013. Sotomayor faces a possible advisory sentencing guideline range of 70 to 188 months in prison.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Karen M. Klotz.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Mount Vernon Woman Pleads Guilty to Theft of Government FundsRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on February 22, 2013, Mary Barnett-Johnson, 51, of Mount Vernon, Illinois, pled guilty to Theft of Government Funds as charged in a one count indictment returned on December 11, 2012, by a Federal Grand Jury sitting in East St. Louis, Illinois. Theft of Government Funds carries a statutory maximum possible punishment of up to ten years imprisonment, a fine of up to $250,000, a period of supervised release of up to three years and the payment of a $100.00 special assessment. Sentencing is scheduled for May 30, 2013, at 10:30 a.m. in United States District Court in Benton, Illinois.
During her plea, Barnett- Johnson admitted that she had fraudulently continued to receive and use her deceased mother’s social security benefits knowing that she was not entitled to receive or use those funds for her own personal benefit. Barnett-Johnson admitted that she received $85,353.00 in social security payments from August of 2003 through September of 2011 that were intended for her mother who died in 2003.
The investigation was conducted by the Social Security Administration’s Office of Inspector General and is being prosecuted by Assistant United States Attorney Ranley R. Killian.
Monterey County Strawberry Farm Owner Sentenced to 12 Months Imprisonment for Submitting Fraudlent Claims for Federal Disaster ReliefRead the Press Release
SAN JOSE, Calif. – An owner-operator of a Monterey County Commercial Strawberry Farm was sentenced on Monday to 12 months and one day in prison for submitting fraudulent claims to the U.S. Department of Agriculture’s Community Credit Corporation which resulted in his receiving over $223,000 in federal crop disaster assistance, United States Attorney Melinda Haag announced.
Marco Antonio Barbosa, 50, of Salinas, California, pleaded guilty on December 15, 2010, to making a false statement to the Commodity Credit Corporation, in violation of 15 U.S.C. § 714m(a). Barbosa admitted in his plea agreement that he and his wife Maria Guadalupe Barbosa owned and operated a commercial strawberry farm named “Barbosa Farms JV (joint venture)” in Monterey County, California. Barbosa admitted that he submitted fraudulent claims to the Community Credit Corporation to receive crop disaster assistance funds to which he was not entitled. Barbosa defrauded two federal programs: the Crop Disaster Program and the Non-insured Crop Disaster Assistance Program. Barbosa falsely claimed that he had suffered strawberry crop losses due to excessive heat, falsely claimed to be farming as a joint venture instead of a corporation, and failed to disclose the full extent of his strawberry production. Barbosa received over $223,000 in federal disaster relief as a result of his fraudulent claims.
Lori Chan, the Special Agent-in-Charge for the Western Region of the U.S. Department of Agriculture’s Office of Inspector General for Investigations, said, “the Office of Inspector General will continue to vigorously investigate individuals and entities that seek to violate USDA farm programs and misuse public funds.”
In sentencing Barbosa, U.S. District Court Judge Ronald M. Whyte emphasized that Barbosa had committed a “serious offense,” and that “deterrence is an appropriate concern here.” Judge Whyte stressed that “programs like the one involved here are threatened if people steal from them and don’t respect the requirements of the program.” In addition to the prison sentence, Judge Whyte ordered the defendant to pay $223,484 in restitution, and debarred him from any Department of Agriculture program or Farm Service Agency contract, and sentenced him to a three-year period of supervised release.
Assistant U.S. Attorney Joseph Fazioli is prosecuting the case with the assistance of Legal Assistant Laurie Worthen. The prosecution is the result of a multi-year investigation by U.S. Department of Agriculture’s Office of Inspector General for Investigations.
Milton Man Sentenced to 160 Years on Child Pornography OffensesRead the Press Release
CONCORD, NEW HAMPSHIRE: John Allen Wright, 46, of Milton, appeared in United States District Court today and was sentenced to 160 years in prison, the maximum penalty allowed, after pleading guilty to five counts of sexual exploitation of children and one count of possession of child pornography, announced United States Attorney John P. Kacavas.
In February, 2011, a member of New Hampshire’s Internet Crimes Against Children (NH ICAC) Task Force initiated an undercover investigation to locate and identify individuals possessing and trading images of child pornography through file sharing networks. Information obtained as a result of the investigation led to the issuance of a search warrant for Wright’s residence in Milton, New Hampshire. In the course of the search, computers and peripherals were seized and forensic examination revealed several videos depicting Wright sexually assaulting minor children who were passengers aboard his school bus. The children, some of whom were completely non-verbal, suffered from a variety of disabilities.The initial search of Wright’s computer also revealed thousands of child sexual assault images that had been downloaded from the internet. A subsequent federal search warrant yielded more evidence linking Wright to the production of his own videos. The defendant has been in custody since his indictment in October, 2011. He entered guilty pleas to all counts in the indictment in September of last year.
United States Attorney Kacavas observed that “this case represents yet another example of our resolve to eradicate the threat to our children posed by predators like the Defendant. While a sentence of this duration is beyond man’s capacity to serve, justice for the young victims and a just punishment for this Defendant are beyond our capacity to achieve. Therefore, only the maximum possible punishment authorized by law is appropriate and like-minded individuals who seek to prey on our children be warned.”
United States Attorney Kacavas would like to thank the NH ICAC Task Force, the Federal Bureau of Investigation, the Rochester Police Department, the New London Police Department, the Strafford County Attorney’s Office, the Dover Police Department, and the Kittery (ME) Police Department, all of whom contributed valuable time and effort to this investigation and prosecution.
This case was prosecuted under Project Safe Childhood, a nationwide initiative by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Middlesex County, NJ, Man Sentenced to 18 Months in Prison for Attempted Escape from Hospital While in Federal CustodyRead the Press Release
TRENTON, N.J. – A Middlesex County, N.J., man who was in custody awaiting a hearing for allegedly violating conditions of his federal supervised release was sentenced today to 18 months in prison for attempting to flee from a Trenton hospital, U.S. Attorney Paul J. Fishman announced.
Joseph Vitale, 59, of Milltown, N.J., pleaded guilty on Nov. 8, 2012, before U.S. District Judge Freda L. Wolfson in Trenton federal court to an Information charging him with attempted escape.
According to documents filed in this case and statements made in court:On March 12, 2008, Vitale was convicted in U.S. District Court of bank fraud. He was sentenced to prison and released in April 2009, when he began serving five years of supervised release. In January 2012, Vitale was charged with violating several conditions of his supervised release and was taken into custody by the U.S. Marshal’s Service on Feb. 7, 2012. After making an appearance in court, Vitale complained of chest pains and was taken to St. Francis Medical Center in Trenton, where he was placed in the custody of a private security service that has a contract with the U.S. Marshal’s Service to provide security for federal prisoners being treated at the hospital. Vitale remained under 24-hour armed guard.
On Feb. 13, 2012, as one of the security guards was adjusting Vitale’s leg restraints, Vitale ran out of his room, evaded the two security guards, and ran down the hallway in an attempt to escape. The two security guards ran down the hallway after Vitale and yelled at him to stop. At one point, Vitale screamed, “I’m getting the (expletive) out of here.” The two security guards caught up to Vitale and while attempting to subdue him, one of the security guards struck his knees on the floor. Vitale continued to struggle with the security guards and made several attempts to grab one of their guns, but he was unable to remove it from its holster. With the assistance of at least one other individual, the security guards were able to subdue Vitale and handcuff him.
In addition to the prison term, Judge Wolfson sentenced Vitale to three years of supervised release.
U.S. Attorney Fishman credited deputy marshals of the U.S. Marshal’s Service, under the direction of U.S. Marshal Juan Mattos Jr., with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the U.S. Attorney’s Office Organized Crime/Gangs Unit.13-089
Defense counsel: David Schafer Esq., Assistant Federal Public Defender, TrentonMiddlesex County, N.J., Man Charged with Production and Distribution of Child PornographyRead the Press Release
NEWARK, N.J. –A Middlesex County, N.J., man was arrested today for allegedly producing and distributing numerous images of child pornography, some taken in his own bedroom, U.S. Attorney Paul J. Fishman announced.
Kenneth Christensen, 44, of Edison, N. J., is charged by Complaint with one count of distribution of child pornography and one count of sexual exploitation of a child. He appeared before U. S. Magistrate Judge Patty Schwartz in Newark federal court this afternoon.
According to documents filed in this case and statements made in court:On May 14, 2012, Christensen, who works as a school crossing guard at a middle school in Metuchen, emailed from his personal computer 240 images depicting child pornography. Among them were three images of a boy who appeared to be about 5 years old. During a search conducted Feb. 21, 2013, at Christensen’s residence, the FBI discovered on his computer the three images from the emails, as well as several hundred more images depicting child pornography.
Since as early as 2002, Christensen has produced photographs of a young boy, who at the time was approximately 12 years old, engaged in sexually explicit conduct. In several of the photos discovered by law enforcement at Christensen’s residence, the boy was naked and his hands and feet were bound with handcuffs, duct tape, plastic ties, or cloth ties. Most of the photos were taken in Christensen’s bedroom.
On the distribution count, the maximum potential penalty is 20 years in prison, with a mandatory minimum sentence of five years in prison, and a fine of $250,000. On the exploitation charge, the maximum penalty Christensen faces is 30 years in prison, with a mandatory minimum sentence of 15 years in prison and a fine of $250,000.U.S. Attorney Fishman praised special agents with the FBI-Innocent Images Unit, under the direction of Special Agent James Tareco, and Acting Special Agent in Charge David Velasquez, for the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney David M. Eskew of the U.S. Attorney’s Office General Crimes Unit in Newark.The charges and allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty
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Defense counsel: K. Anthony Thomas, Assistant Federal Public Defender, Newark
Christensen Complaint
Life Sentenced Ordered Marijuana Trafficking ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – A total of nine men have now been sentenced to federal prison as a result of the efforts of a multi-agency Organized Crime Drug Enforcement Task Force (OCDETF) investigation into a conspiracy to possess with intent to distribute more than 1,000 kilograms of marijuana, United States Attorney Kenneth Magidson announced today. The conspiracy ran from 2003 until their arrests in June 2012.
Jesus Marroquin, 50, and Flavio Tamez, 47, both of Rio Grande City; Adrian De la Garza, 41, of Sullivan City; Rene Salazar, 42, Jose Figueroa, 36, Edwardo Munoz, 36, Samuel Garcia, 52, and Onofre Lopez, 37, all of Falfurrias; and Alejandro Garza, 43, of Mission - each entered their guilty pleas before U.S. District Judge Nelva Gonzales Ramos on Sept. 6, 2012. Three others - Roberto Garza, 42, and Jesus Gregorio Lopez aka Goyo Lopez, 63, both of Mission; and Ramon Zamora, 52, of Rio Grande City, were convicted following a seven-day trial on Oct. 25, 2012.
Today, Judge Ramos ordered Roberto Garza, identified as a leader in the conspiracy, to serve the rest of his life in prison. Zamora, also considered a leader, was also sentenced today, to a term of 360 months in federal prison.
On Feb, 6, 2013, Lopez aka Goyo, was sentenced to 292 months, at which time his interest in ranch property was ordered forfeited to the United States. Last month, Garcia was sentenced to 120 Months, while De la Garza, Salazar, Figueroa, Munoz and Lopez received respective sentences of 50, 30, 15, eight and 84 months. The remaining three defendants - Garza, Tamez and Marroquin are set for sentencing next month.
The criminal organization specialized in avoiding the Falfurrias Border Patrol Checkpoint by using ranches adjacent to the checkpoint.
Evidence presented at trial by the government included 19 marijuana seizures directly linked to this organization, totaling more than three tons of marijuana seized by law enforcement. Further, evidence presented showed that an outdoor restroom (outhouse) was used by the organization to hide marijuana on one of the ranches. The outhouse has a secret underground compartment where they stored up to 1000 pounds of marijuana at a time. Evidence also included multiple vehicles used by this organization to circumvent the checkpoint, including trucks and multiple all-terrain vehicles.
Tamez has agreed to the criminal forfeiture of two pieces of real property located in Starr County - a house built by Tamez using drug proceeds and a business used by Tamez to conduct his drug business. Tamez also agreed to forfeit $230,000 in currency seized from a safe deposit box where Tamez hid drug proceeds. Marroquin has also agreed to criminally forfeit several pieces of jewelry and $6,000 in currency seized during his arrest.
The real properties involved in this conspiracy were either purchased with drug proceeds or used to facilitate the drug-trafficking activity. The ranch known as “Campo de Goyo” or the “Carolina Ranch,” was specifically used by this organization as a staging area to store large quantities of marijuana before proceeding through the ranches around the Falfurrias Border Patrol Checkpoint.
The OCDETF investigation leading to the criminal charges was conducted in Corpus Christi lead by Homeland Security Investigations, Internal Revenue Service - Criminal Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Texas Department of Public Safety, Brooks County Sheriff’s Office, U.S. Border Patrol, Customs and Border Protection and the United States Marshals Service. This case is being prosecuted by Assistant United States Attorney Julie K. Hampton.
Korean ‘Salon’ Operator Sentenced to Prison for Immigration Fraud ConspiraciesRead the Press Release
A Korean National who fraudulently gained U.S. Citizenship in a fake marriage, was sentenced today to two years in prison and three years of supervised release for Conspiracy to Commit Immigration Fraud, Conspiracy to Harbor, Transport, and Induce Illegal Aliens and Attempt to Commit Immigration Fraud, announced U.S. Attorney Jenny A. Durkan. MIYOUNG ROBERTS, 42, of Auburn, Washington, operated the Blue Moon bar in Federal Way. In her supervisory role, ROBERTS arranged for more than two dozen Korean women to travel to and around the U.S. to work at various clubs, and she counseled them on how to avoid detection by immigration authorities. At sentencing U.S. District Judge Ronald B. Leighton stated that ROBERTS’ conduct was “degrading” and “shameful.”
Between 2009 and 2012, ROBERTS worked first as an ‘Assistant Madam’ and later a ‘Madam,’ at the Blue Moon, hiring the women who served as “bar girls” and arranging their transportation from Korea to the U.S. ROBERTS also arranged apartments for the women to live in and supervised some of the women’s prostitution activities. ROBERTS herself entered into a fraudulent marriage to obtain a green card in the U.S. and attempted to arrange a fraudulent marriage for another co-conspirator. The groom she recruited was actually an agent working undercover on the case.
ROBERTS did not limit her activities to the areas of King and Pierce Counties, but was prominent in supplying women to similar Korean bar businesses across the country. “The defendant was involved in criminal activity for over three years, and even when not employed at the Blue Moon, she was actively recruiting and coordinating the travel of illegal Korean National women to work at various room salon [bar] businesses in New York, New Jersey, Texas, and Colorado. ….Through such recruitment, the defendant was able to secure a job for herself at any one of these room salons around the country, and earned a reputation for being a successful room salon madam. ….Through her work as a room salon madam, the defendant induced numerous Korean women to unlawfully enter and stay in the United States to work at various room salons in different cities,” prosecutors wrote in their sentencing memo.
The owner of the Blue Moon salon, Chang Kim, will be sentenced next month.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Washington State Liquor Control Board (WSLCB), the Internal Revenue Service Criminal Investigation (IRS-CI) and the FBI.
The case was prosecuted by Assistant United States Attorneys Ye-Ting Woo and Matthew Thomas.
Justice Department Sues to Shut Down Tennessee Tax Return PreparersRead the Press Release
The United States has asked a federal court in Memphis, Tenn., to permanently bar husband and wife team Ahmed Grant and Lillian Madyun from preparing federal income tax returns for others, the Justice Department announced today. According to the government complaint, Grant and Madyun have operated multiple tax return preparation businesses in the Memphis area, including SuperFast Taxes, MG Services, and most recently, Taxes-R-Us.
The complaint alleges that Grant and Madyun have prepared returns that unlawfully overstate refunds and understate tax liability through a variety of schemes. Specifically, the government alleges that Grant and Madyun have prepared returns that unlawfully claim the Earned Income Tax Credit for their clients by reporting fictitious Schedule C business income. The government alleges that Grant and Madyun also prepared returns that claimed the American Opportunity Credit, to which their clients were not entitled, without their clients’ knowledge or consent. According to the complaint, ninety percent of the American Opportunity Credits claimed on their clients’ returns were false. The complaint further alleges that Grant and Madyun improperly ensured that their clients’ refunds were deposited into their own business’s bank account. The estimated harm to the government is over $2 million for the 2010 tax year alone, and may be as high as $5 million, according to the complaint.
This lawsuit is part of the Justice Department’s nationwide crackdown on tax scams, including the preparation of fraudulent federal tax returns. In the past decade the Justice Department’s Tax Division has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters. Information about these cases is available on the Justice Department website .
Related Materials:
United States v. Ahmed Grant, et al.
Grant Madyun Complaint (PDF)Johnny Ray Rowland 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 22, 2013, before Chief U.S. District Judge Richard F. Cebull, JOHNNY RAY ROWLAND, a 38-year-old resident of Lame Deer and an enrolled member of the Northern Cheyenne Tribe, appeared for sentencing. ROWLAND was sentenced to a term of:
- Prison: 46 months
- Special Assessment: $200
- Supervised Release: 3 years
ROWLAND was sentenced in connection with his guilty plea to assault with a deadly weapon and assault resulting in serious bodily injury.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On June 21, 2012, the victim was giving a neighbor a ride home to Muddy Cluster, when he was confronted by the neighbor's husband, ROWLAND. The confrontation stemmed from a tussle over a bottle of alcohol. The neighbor tried to take a bottle of alcohol from the car. When the victim tried to stop her, she yelled and got the attention of ROWLAND. The victim was sitting in the passenger front seat when ROWLAND approached the car and punched the victim in the head with brass knuckles. ROWLAND continued to punch the victim in the head and face area with the brass knuckles, yelling threats and his intent to kill the victim. DNA extracted from blood recovered from the interior of the car matches the victim's DNA.
The victim ultimately got out of the car to defend himself. At this point, ROWLAND pulled out a knife and slashed the victim on his head and below his chin. The victim eventually fell to the ground and ROWLAND kicked the victim a few times while he was lying on the ground.
The victim sought medical treatment for his injuries that meet the definition of serious bodily injury.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that ROWLAND will likely serve all of the time imposed by the court. In the federal system, ROWLAND 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 a cooperative effort between the Bureau of Indian Affairs and the Federal Bureau of Investigation.
Informational: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on February 21, 2013, before U.S. Magistrate Judge R. Keith Strong, the following individuals were arraigned:
KE XU, a 25-year-old resident of San Gabriel, California, appeared on charges of conspiracy to commit fraud, wire fraud, access device fraud, and aggravated identity theft. He is currently detained. If convicted of these charges, XU faces possible penalties of twenty years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Bryan Whittaker is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
LIANG WANG, a 30-year-old resident of Monterey, California, appeared on charges of conspiracy to commit fraud, wire fraud, and access device fraud, and aggravated identity theft. He is currently detained. If convicted of these charges, WANG faces possible penalties of twenty years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Bryan Whittaker is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
RODNEY LANE COOPER, a 50-year-old resident of Havre, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine and distribution of methamphetamine. He is currently detained. If convicted of these charges, COOPER faces possible penalties of a mandatory minimum of 5 years in prison up to 40 years in prison, a $2,000,000 fine, and 4 years supervised release. Assistant U.S. Attorney Jessica Betley is the prosecutor for the United States. The investigation was conducted by the Tri-Agency Drug Task Force.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.