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Wednesday 20 February 2013
Vice President Biden and Attorney General Holder Honor<br /> 18 Public Safety Officers with Medal of ValorRead the Press Release
Vice President Joe Biden and Attorney General Eric Holder today awarded the Public Safety Officer Medal of Valor to 18 public safety officers who exhibited exceptional courage in saving and protecting others and whose heroic actions were above and beyond the call of duty.
“This year’s Medal of Valor recipients have fearlessly responded to desperate cries for help – courageously risking their own lives to secure innocent victims, protect fellow officers, and end deadly assaults,” said Attorney General Eric Holder. “These extraordinary public servants have distinguished themselves by going above and beyond the call of duty. And today, I am honored to join Vice President Biden in bestowing one of our nation’s most prestigious decorations on each of these heroes.”
The Medal of Valor, authorized by the Public Safety Medal of Valor Act of 2001, is awarded by the President of the United States to public safety officers cited by the Attorney General. Public safety officers are nominated by the chiefs or directors of their employing agencies and recommended by the Medal of Valor Review Board. The Attorney General has designated the department’s Office of Justice Programs (OJP) to serve as the federal point of contact for the Medal of Valor initiative. OJP’s Bureau of Justice Assistance (BJA), led by Director Denise E. O’Donnell, administers the Medal of Valor initiative.
“We recognize 18 extraordinary individuals for their quick thinking, selflessness and exceptional courage,” said Office of Justice Program Acting Assistant Attorney General Mary Lou Leary. “They are law enforcement, corrections officers, and firefighters who went beyond the call of duty to risk – and in some cases, to give – their lives for their fellow citizens and colleagues.”
Today’s 18 recipients of the Medal of Valor are: Officer Julie Olson, Maplewood Police Department, Minn.; Officer Reeshemah Taylor, Osceola County Corrections Department, Fla.; Wildlife Officer Michael Neal, Arkansas Game and Fish Commission; Officer Sean Haller and Officer Rafael Rivera, California Highway Patrol; Trooper Robert Lombardo and fallen Trooper Joshua Miller, Pennsylvania State Police; Firefighter Peter Demontreux, New York City Fire Department; Firefighter Hope Scott and Captain William Reynolds, Virginia Beach Fire Department, Va.; Deputy Sheriff Krista McDonald, Kitsap County Sheriff’s Office, Wash.; Officers Timothy McClintick, Max McDonald, Douglas Weaver, Sergeant Karl Lounge Jr. and fallen Sergeant Thomas Baitinger, St. Petersburg Police Department, Fla.; and fallen Deputies William Stiltner and Cameron Justus, Buchanan County Sheriff's Office, Va.
“The Public Safety Officer Medal of Valor is the highest national award for valor awarded to a public safety officer,” said Bureau of Justice Assistance Director, Denise E. O’Donnell. “BJA is proud to administer a program which serves to recognize the exceptionally brave actions of individuals who have given selflessly in order to protect citizens and communities throughout our nation.”
Including today’s awardees, a total of 78 medals have been presented since the first recipients were honored in 2003. More information about the award and today’s recipients, the Medal of Valor Review Board members, and the nomination process is on the OJP website at: www.ojp.usdoj.gov/medalofvalor .
Related Materials:
Attorney General Eric Holder Speaks at the Medal of Valor Awards Ceremony
Acting Assistant Attorney General for the Office of Justice Programs Mary Lou Leary Speaks at the Medal of Valor Awards CeremonyVice President Biden and Attorney General Holder Honor 18 Public Safety Officers with Medal of ValorRead the Press Release
WASHINGTON – Vice President Joe Biden and Attorney General Eric Holder today awarded the Public Safety Officer Medal of Valor to 18 public safety officers who exhibited exceptional courage in saving and protecting others and whose heroic actions were above and beyond the call of duty.
“This year’s Medal of Valor recipients have fearlessly responded to desperate cries for help – courageously risking their own lives to secure innocent victims, protect fellow officers, and end deadly assaults,” said Attorney General Eric Holder. “These extraordinary public servants have distinguished themselves by going above and beyond the call of duty. And today, I am honored to join Vice President Biden in bestowing one of our nation’s most prestigious decorations on each of these heroes.”
The Medal of Valor, authorized by the Public Safety Medal of Valor Act of 2001, is awarded by the President of the United States to public safety officers cited by the Attorney General. Public safety officers are nominated by the chiefs or directors of their employing agencies and recommended by the Medal of Valor Review Board. The Attorney General has designated the department’s Office of Justice Programs (OJP) to serve as the federal point of contact for the Medal of Valor initiative. OJP’s Bureau of Justice Assistance (BJA), led by Director Denise E. O’Donnell, administers the Medal of Valor initiative.
“We recognize 18 extraordinary individuals for their quick thinking, selflessness and exceptional courage,” said Office of Justice Program Acting Assistant Attorney General Mary Lou Leary. “They are law enforcement, corrections officers, and firefighters who went beyond the call of duty to risk – and in some cases, to give – their lives for their fellow citizens and colleagues.”
Today’s 18 recipients of the Medal of Valor are: Officer Julie Olson, Maplewood Police Department, Minn.; Officer Reeshemah Taylor, Osceola County Corrections Department, Fla.; Wildlife Officer Michael Neal, Arkansas Game and Fish Commission; Officer Sean Haller and Officer Rafael Rivera, California Highway Patrol; Trooper Robert Lombardo and fallen Trooper Joshua Miller, Pennsylvania State Police; Firefighter Peter Demontreux, New York City Fire Department; Firefighter Hope Scott and Captain William Reynolds, Virginia Beach Fire Department, Va.; Deputy Sheriff Krista McDonald, Kitsap County Sheriff’s Office, Wash.; Officers Timothy McClintick, Max McDonald, Douglas Weaver, Sergeant Karl Lounge Jr. and fallen Sergeant Thomas Baitinger, St. Petersburg Police Department, Fla.; and fallen Deputies William Stiltner and Cameron Justus, Buchanan County Sheriff's Office, Va.
“The Public Safety Officer Medal of Valor is the highest national award for valor awarded to a public safety officer,” said Bureau of Justice Assistance Director, Denise E. O’Donnell. “BJA is proud to administer a program which serves to recognize the exceptionally brave actions of individuals who have given selflessly in order to protect citizens and communities throughout our nation.”
Including today’s awardees, a total of 78 medals have been presented since the first recipients were honored in 2003. More information about the award and today’s recipients, the Medal of Valor Review Board members, and the nomination process is on the OJP website at: www.ojp.usdoj.gov/medalofvalor.
Two Women Charged with Housing IntimidationRead the Press Release
A criminal information was filed in United States District Court charging Amber Mohan and Michelle Snyder with interfering with and intimidating an individual’s right to enjoy housing because of that individual’s race, religion, and national origin, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Mohan, 27, resides in Cleveland, while Snyder, 33, resides in Cuyahoga Falls, Ohio, according to public records. They are accused of violating Title 42, United States Code, Section 3631.
“In this country, people are free to live where they want, free from harassment and threats,” Dettelbach said. “Those who have not gotten the message and break the law will be prosecuted.”
“As evidenced by this investigation, the FBI aggressively and thoroughly pursues all allegations of civil rights violations. The actions outlined in the charges are simply unacceptable and no one should be subjected to these types of threats and intimidation.”
The information, along with evidence available to the United States Attorney’s Office, reflects that on or about December 1, 2009, Mohan, Snyder and one other individual already charged, planned and carried out the hanging of a toy camel from a noose, and affixed that to the door of an individual, identified in the Information as A.F.A., who is of Arabic descent and a Muslim.
The crime occurred at A.F.A.’s apartment at the Stonebridge Apartments, located at 1500 Detroit Ave. in Cleveland. A.F.A. was selected as a target of Mohan and Snyder’s conduct because of A.F.A.’s race, religion, and national origin, according to the information.
The charge against Mohan and Snyder carries maximum penalties of up to one year in prison, a fine of $100,000, and up to one year of supervised release. If convicted, the defendant’s sentence will be determined by the court after review of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by assistant U.S. Attorney James V. Moroney, following an investigation by the Civil Rights Unit of the Federal Bureau of Investigation.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two Companies and Five Individuals Charged with Roles in Illegal Honey Imports; Avoided $180 Million in Anti-Dumping DutiesRead the Press Release
CHICAGO — Five individuals and two domestic honey processing companies have been charged with federal crimes in connection with a nationwide investigation of illegal importations of honey from China that was mislabeled as coming from other countries to avoid antidumping duties or was adulterated with antibiotics not approved for use in honey. Altogether, the seven defendants allegedly avoided antidumping duties totaling more than $180 million.
None of the charges allege any instances of illness or other public health consequences attributed to consumption of the honey.
The charges represent the second phase of an investigation led by agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). In June 2011, an undercover agent assumed the role of director of procurement at defendant HONEY HOLDING I, LTD., which by then was cooperating with the investigation.
Honey Holding, doing business as Honey Solutions, of Baytown, Tex., and defendant GROEB FARMS, INC., of Onsted, Mich., two of the nation’s largest honey suppliers, have both entered into deferred prosecution agreements with the government, subject to court approval, with Honey Holding agreeing to pay a $1 million fine and Groeb Farms agreeing to the payment of a $2 million fine. Both companies have agreed to implement corporate compliance programs as part of their respective agreements.
The individual defendants include three honey brokers, as well as DOUGLAS A. MURPHY, former director of sales for Honey Holding, and DONALD COUTURE, president of Premium Food Sales, Inc., a broker and distributor of raw and processed honey in Bradford, Ontario.
In December 2001, the Commerce Department determined that Chinese-origin honey was being sold in the United States at less than fair market value, and imposed antidumping duties. The duties were as high as 221 percent of the declared value, and later were assessed against the entered net weight, currently at $2.63 per net kilogram, in addition to a “honey assessment fee” of one cent per pound of all honey. In October 2002, the Food and Drug Administration issued an import alert for honey containing the antibiotic Chloramphenicol, a broad spectrum antibiotic that is used to treat serious infections in humans, but which is not approved for use in honey. Honey containing certain antibiotics is deemed “adulterated” within the meaning of federal food and drug safety laws.
In 2008, federal authorities began investigating allegations involving circumventing antidumping duties through illegal imports, including transshipment and mislabeling, on the “supply side” of the honey industry. The investigation resulted in charges against 14 individuals, including executives of Alfred L. Wolff GmbH and several affiliated companies of the German food conglomerate whose U.S. honey-importing business was based in Chicago, and others for allegedly avoiding approximately $80 million in antidumping duties on Chinese-origin honey. Authorities seized and forfeited more than 3,000 drums of honey that entered the country illegally.
The second phase of the investigation, announced today, involves allegations of illegal buying, processing, and trading of honey that illegally entered the U.S. on the “demand side” of the industry. The investigation is continuing.
“We applaud the efforts of HSI, Customs and Border Protection, and other agencies involved in this complex, long-term investigation to enforce the laws that exist to protect U.S. consumers and the honey market,” said Gary S. Shapiro, United States Attorney for the Northern District of Illinois.
“These businesses intentionally deprived the U.S. government of millions of dollars in unpaid duties,” said ICE Deputy Director Daniel Ragsdale. “Schemes like these result in legitimate importers and the domestic honey-producing industry enduring years of unprofitable operations, with some even being put out of business. We will continue to enforce criminal violations of antidumping laws in all industries and ports of entry so American businesses and foreign producers of goods all play by the same rules.”
Also announcing the charges were Gary Hartwig, Special Agent-in-Charge of HSI Chicago; William A. Ferrara, Acting Director of Field Operations for U.S. Customs and Border Protection (CBP) in Chicago, and Daniel Henson, Special Agent-in-Charge of the Chicago Field Office of the Food and Drug Administration’s Office of Criminal Investigations.
The U.S. Food and Drug Administration operates a toll-free number for consumer inquiries: 1-888-INFO-FDA (463-6332).
The government is being represented by Assistant U.S. Attorney Andrew S. Boutros.
The public is reminded that indictments and informations 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. If convicted, courts must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines. Three of the five individuals charged have authorized the government to disclose that they intend to plead guilty to the charges against them.
Details of the six separate cases follow:
United States v. Groeb Farms, Inc., 13 CR 137
GROEB FARMS, INC., of Onsted, Mich., described as the largest industrial honey supplier in the United States, was charged with buying 1,578 container loads of Chinese-origin honey between February 2008 and April 2012, knowing that it was illegally imported into the United States to avoid more than $78.8 million in antidumping duties.
The company has entered into a deferred prosecution agreement in which it accepted and acknowledged responsibility for its conduct and that of its current and former executives and employees. The agreement requires the company to continue cooperating fully for two years, to pay a $2 million fine based on its ability to pay, and to dispose any illegally-entered Chinese-origin honey in its possession.
The company admitted in a factual statement that two former executives purchased Chinese-origin honey for processing at its facilities and sold that honey to its domestic retail, foodservice, and industrial customers as mislabeled non-Chinese honey, and at other times, as Chinese honey, all while knowing that it had been illegally imported to avoid antidumping duties and, at times, honey assessment fees. The honey was variously described falsely as sugars and syrups instead of Chinese-origin honey, and as having originated in Indonesia, Malaysia, Mongolia, Thailand, and Vietnam, instead of China.
The two former executives engaged in fraudulent practices despite the company’s own audits and inspections that raised substantial concerns that the honey was illegally imported. They also provided false information to the company’s board of directors, customers, and the public regarding Groeb Farms’ involvement in knowingly purchasing, processing, and selling illegally smuggled Chinese-origin honey.
The corporate compliance program is designed to ensure that Groeb Farms maintains supply chain integrity and conducts reasonable inquiries to safeguard against any illegal activity.
United States v. Douglas A. Murphy and Honey Holding I, 13 CR 138
DOUGLAS A. MURPHY, 56, of Kingwood, Tex., and HONEY HOLDING I, LTD., doing business as Honey Solutions, a large industrial honey supplier based in Baytown, Tex., were charged together with violating the federal Food, Drug, and Cosmetic Act for allegedly purchasing discounted Polish-origin honey containing the prohibited antibiotic Chloramphenicol from Alfred L. Wolff USA in 2006. Murphy was director of sales between 2003 and 2008 and was responsible for the purchase of wholesale quantities of honey, maintaining relationships with suppliers, and the sale of honey to U.S. customers.
DOUGLAS A. MURPHY, 56, of Kingwood, Tex., and HONEY HOLDING I, LTD., doing business as Honey Solutions, a large industrial honey supplier based in Baytown, Tex., were charged together with violating the federal Food, Drug, and Cosmetic Act for allegedly purchasing discounted Polish-origin honey containing the prohibited antibiotic Chloramphenicol from Alfred L. Wolff USA in 2006. Murphy was director of sales between 2003 and 2008 and was responsible for the purchase of wholesale quantities of honey, maintaining relationships with suppliers, and the sale of honey to U.S. customers.
Murphy pleaded guilty today and, under the terms of his cooperation plea agreement, subject to court approval, he will receive a sentence of six months’ imprisonment and a fine of $26,624 when he is sentenced on May 31.
Honey Holding has entered into a deferred prosecution agreement in which it accepted and acknowledged responsibility for its conduct and that of its employees and agents. The agreement requires the company to continue cooperating fully for two years and to pay a $1 million fine based on its ability to pay. The agreement describes Honey Holding’s “extensive cooperation, including its agreement to allow an undercover law enforcement agent to assume the role of [its] director of procurement in an undercover capacity since June 2011.”
The company admitted in a factual statement that Honey Holding defrauded its downstream customers of approximately $26,624 by purchasing, processing, and selling the Polish-origin honey that was adulterated with the antibiotic.
The company also admitted that it purchased Chinese-origin honey from at least seven shell and front companies that were controlled by various Chinese honey producers and manufacturers. These illegal honey imports avoided more than $33.4 million in antidumping duties.
Honey Holding also agreed to establish a corporate compliance program to ensure that it maintains supply chain integrity and takes steps to safeguard against any illegal activity.
United States v. Jun Yang, 13 CR 139
JUN YANG, 39, of Houston, who brokered the sale of honey to Honey Holding among others, and who operated National Honey, Inc., which did business as National Commodities Company in Houston, was charged with brokering the sale of illegal Chinese-origin honey, which was misrepresented as originating in India, into the United States to avoid antidumping duties.
Yang, through his attorney, has authorized the government to disclose that he will plead guilty, admitting responsibility for fraudulently avoiding antidumping duties totaling as much as $37.9 million on Chinese-origin honey that entered the country illegally as Malaysian and Indian honey between 2009 and 2012. Yang has agreed to pay a fine of $250,000 and restitution totaling $2.64 million, in addition to whatever other sentence is imposed by the court. The government has agreed to recommend a sentence of 74 months in prison.
United States v. Urbain Tran, 13 CR 140
URBAIN TRAN, 78, of Culver City, Calif., an agent of Honey Holding who brokered honey transactions for the company since 2006, was charged with two counts of brokering the sale and transportation of illegal Chinese-origin honey, which was misrepresented as originating in Malaysia and Vietnam, into the United States to avoid antidumping duties.
Tran, through his attorney, has authorized the government to disclose that he will plead guilty under the terms of an agreement calling for a fine of $500,000 and restitution totaling $204,403, in addition to whatever other sentence is imposed by the court. Tran faces a maximum of 20 years in prison on each fraudulent sales and transportation count.
United States v. Hung Yi Lin, 13 CR 125
HUNG YI LIN, also known as “Katy Lin,” 42, of Temple City, Calif., was charged in a federal grand jury indictment returned yesterday with one count of transporting 10 container loads of Chinese-origin honey through the Chicago area after it entered the country illegally. Lin owned and operated KBB Express Inc., of South El Monte, Calif., and served as the U.S. agent for at least 12 importers that were controlled by Chinese honey producers and manufacturers. She was initially charged in a criminal complaint and arrested on Feb. 9 in California. She was released on a $100,000 secured bond and will be arraigned on a later date in U.S. District Court in Chicago.
According to the indictment, between 2009 and 2012, Lin schemed to falsify the contents of hundreds of shipping containers of Chinese-origin honey by misrepresenting them as sugars and syrups during the importation process. As a result, the honey, which had an aggregate declared value of nearly $11.5 million when it entered the country, avoided antidumping duties and honey assessments totaling $39.2 million, the charges allege.
The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
United States v. Donald Couture, 11 CR 781
DONALD COUTURE, 60, of Bradford, Ontario, the president, owner, and operator of Premium Food Sales, Inc., a Canadian broker and distributor of raw and processed honey, was indicted on four counts of violating the Food, Drug, and Cosmetic Act. In May 2009, Couture allegedly caused four container loads of his company’s honey that were rejected by one U.S. customer because of the presence of a prohibited antibiotic, Tetracycline, to be delivered to a second U.S. customer without disclosing that the honey contained the antibiotic. The honey was shipped through the Chicago area when it was transported from one customer to the other.
An arrest warrant was issued in the U.S. for Couture. Couture was initially charged in a sealed complaint in November 2011 and the complaint was unsealed after he was indicted last week. Each count carries a maximum penalty of three years in prison and a $250,000 fine.
Groeb Farms Information
Groeb Farms DPA
Murphy and Honey Holding Information
Honey Holding DPA
Murphy Plea Agreement
Yang Information
Tran Information
Lin Indictment
Couture IndictmentTwo Arrested in Alleged Marijuana Smuggling OperationRead the Press Release
ALEXANDRIA, Va. – Francisco Cirilio Vargas-Aquino, aka “Francisco C. Vargas,” and “Miguel,” 48, of Manassas, Va., and Ricardo Avelar Valdez, 47, of Gainesville, Va., have been arrested for their alleged roles in a marijuana smuggling operation based in Northern Virginia that has attempted to smuggle several multi-thousand pound loads of marijuana from Mexico to Prince William County, Va.
Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia, and John P. Torres, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C. Field Office, made the announcement after the charges became public.
“These two men are accused of bringing tractor trailers full of marijuana – with a street value of tens of millions of dollars – across the Mexican border destined for northern Virginia,” said U.S. Attorney MacBride. “This case represents the goal of every Organized Crime Drug Enforcement Task Force operation – identify major drug trafficking organizations and then disrupt and ultimately dismantle their networks.”
“Special agents of ICE Homeland Security Investigations (HSI) and the Drug Enforcement Administration conducted enforcement operations yesterday at two residences and at two businesses in Northern Va.,” said Special Agent in Charge Torres. “The enforcement operations are part of an on-going investigation related to drug smuggling from Mexico to Northern Virginia. In coordination with our federal, state and local law enforcement partners, HSI will utilize its resources to dismantle international narcotics trafficking organizations who supply dangerous drugs to our communities.”
Vargas and Valdez are charged with conspiring to import 1,000 kilograms or more of marijuana into the United States and face a mandatory minimum of 10 years and a maximum of life in prison, if convicted.
According to court records, in the past year and a half, HSI special agents and U.S. Customs and Border Protection officers have made three significant marijuana seizures at ports of entry in Texas have been allegedly tied to this operation. The marijuana, which was concealed in frozen fruit pulp and furniture parts, was, in each case, being shipped within commercial tractor trailers to business addresses in Prince William County. During this investigation, law enforcement in Texas has allegedly seized approximately 10,000 pounds of marijuana, all of which was being shipped to the Eastern District of Virginia.
This ongoing Organized Crime Drug Enforcement Task Force investigation, dubbed “Operation Buena Vida,” is being led by HSI’s Washington D.C. Field Office, in partnership with the Drug Enforcement Administration and the Fairfax County Police Department.
The prosecution is being handled by Assistant U.S. Attorney Mary K. Daly and Special Assistant U.S. Attorney Elizabeth Eriksen.
Criminal complaints are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
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.Thirty People Indicted in Massive Florida-Arizona Drug ConspiracyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Antonio J. Gomez, Acting Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Field Office, and Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, announce the arrests of 30 individuals engaged in a massive drug conspiracy that trafficked drugs from Arizona to Florida. The defendants were arrested earlier today and are expected to make their initial appearances today in federal court before U.S. Magistrate Judge Dave Lee Brannon in West Palm Beach at 1:00 p.m.
Charged in the 12-count indictment are George Evans Bivins, Jr., a/k/a “Ziggy,” 30, of West Palm Beach, Antonio Markeith Beverly, a/k/a “Tony,” 29, of West Palm Beach, Daniel Emmanuel Torrez, 31, of Tucson, Arizona, Lavaris Reshard Bivins, a/k/a “Varis,” 22, of West Palm Beach, William Alvarenga, a/k/a “Chico,” 19, of Boynton Beach, Jessica Marie Arvizu, 30, of Tucson, Arizona, Michael Maxwell Barkley, a/k/a “Tater,” 38, of Lake Worth, Jerrick David Bartee, 30, of West Palm Beach, Kirk Douglas Bivins, a/k/a “Kirky,” 38, of Riviera Beach, Demetri Pernell Cobb, a/k/a “Meechi,” 23, of Lake Worth, Darren Duane Donnally, 39, of Palm Springs, Quatavious Carnell George, a/k/a “Jelly Boy,” 26, of Riviera Beach, Wellington Timothy Glinton, a/k/a “Timmy,” 20, of Lake Worth, Javaris Reshad Bartelmy, 24, of Boynton Beach, Ernest Andrew Holiday, a/k/a “Bam,” 30, of Riviera Beach, Jean Innocent, a/k/a “Barko,” 20, of Lake Worth, Demetrice Lemane Jones, 37, of Riviera Beach, Dominic Perry Lamare, 33, of Port St. Lucie, Patrick Jarrod Lowe, 24, of Lantana, Richard John Mercy, 30, of North Palm Beach, Frank Davis Moore, Jr., a/k/a “Bow Head,” “Bodeen,” 33, of Royal Palm Beach, Evens Pierre Louis, a/k/a “E-Bo,” 27, of Palm Springs, Theresa Lashai Razz, 28, of West Palm Beach, Lori Beth Mae Saccoman, 50, of West Palm Beach, Jeannot Saintelus, a/k/a “Jit,” 23, of Lake Worth, Calvin Leon Sirmans, Jr., a/k/a “CJ,” 28, of Lake Worth, Jamie Toby, 24, of Lake Worth, Monica Deloris Toby, 47, of Lantana, Eric Lanard Williams, a/k/a “Baby Boy,” 29, of Lantana, and David Lendell White, a/k/a “Popper,” 25, of Lake Worth.
U.S. Attorney Wifredo Ferrer stated, “Today, the streets of Lake Worth and the surrounding areas are just a little safer, thanks to the concerted efforts of the FBI, the U.S. Postal Inspection Service, and the Palm Beach Sheriff’s Office. Thanks to their hard work, we have removed more than two dozen drug traffickers from our streets.”
“Through the combined efforts of local and federal law enforcement, this massive drug trafficking conspiracy is out of business,” said Michael B. Steinbach, Special Agent in Charge of FBI Miami. “Drugs and the violent gangs that profit from them have a devastating effect on our communities and we will continue to work with our partners to make South Florida a safer place.”
Antonio J. Gomez, Acting Inspector in Charge for the U.S. Postal Inspection Service stated, “The U.S. Postal Inspection Service is proud to stand shoulder-to-shoulder with the U.S. Attorney’s Office and all of our law enforcement partners in making our communities safer by working to eradicate narcotics from the U.S. Mail stream.”
More specifically, the indictment, filed on February 7, 2013 and unsealed today, charges the defendants with conspiracy to possess with intent to distribute cocaine base and/or cocaine hydrochloride, and possession with intent to distribute cocaine base and/or cocaine hydrochloride, in violation of Title 21, United States Code, Sections 841(a)(1), and 846. If convicted, the defendants each face a mandatory-minimum sentence of 10 years in prison up to a statutory maximum term of life in prison.
According to statements made in court, this conspiracy involved multiple kilograms of cocaine hydrochloride that were shipped from Tucson, Arizona, to Palm Beach County for sale and distribution as both cocaine hydrochloride and cocaine base. Much of the cocaine was sold in and around the streets of Lake Worth, Florida.
Mr. Ferrer commended the investigative efforts of the FBI, the Palm Beach County Sheriff’s Office, and the U.S. Postal Inspection Service. This case is being prosecuted by Assistant U.S. Attorneys Rinku Tribuiani and Robert Waters.
An indictment is only an accusation and the defendants are presumed innocent until proven guilty.
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.
Tax Defier Sentenced to Three Years in Federal PrisonRead the Press Release
Defendant Ordered to Pay Over $85,000 in Restitution to the IRS
COEUR D'ALENE – Gary Raymond Harvey, 71, of Peck, Idaho, was sentenced today to 36 months in prison for making false claims for refund from the Internal Revenue Service, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Harvey to serve three years of supervised release following his prison term and pay $ 85,217.94 in restitution. Harvey pleaded guilty to the charges on November 1, 2012, during his trial.
During the trial, evidence showed that Harvey created and filed tax returns for the entity The Organic Assembly of Circle JB, claiming that the entity was entitled to tax refunds ranging from $8,851.80, to $54,080, for tax years 2002 through 2010. During Harvey’s cross-examination on the fourth day of trial, he admitted that he knew he was not entitled to the refunds and changed his plea to guilty on all counts charged in the indictment. A federal grand jury had indicted Harvey on August 23, 2011, on ten counts of making a false claim for a refund.
“All citizens have a solemn obligation to pay taxes,” said Olson. “Those who claim false refunds cheat not only the government but also other taxpayers. This sentence sends the strong message that those who fail to pay their equal share will be punished.”
The case was investigated by Internal Revenue Service-Criminal Investigation.
Superintendent of Dover Bridge Project SentencedRead the Press Release
COEUR D’ALENE – Kip David Harris, 38, of Boulder, Montana, was sentenced yesterday in United States District Court in Coeur d’Alene to three years’ probation for making a false statement, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Harris to pay a $750 fine. He pleaded guilty to the charge on December 4, 2012.
According to court documents, Harris was the lead superintendent of the Dover Bridge Project, the majority of which was funded by the American Recovery and Reinvestment Act of 2009 through the Federal Highway Administration, a component of the United States Department of Transportation. The project called for the existing steel-truss bridge located on U.S. Highway 2 near Dover, Idaho, to be replaced with a new steel bridge. According to court documents, Harris directed laborers to modify nonconforming anchor bolts so it would appear to the inspection team that the bolts were in compliance. Harris admitted that he knew the anchor bolts did not conform to contract specifications. The safety and soundness of the project was not affected.
The case was investigated by the United States Department of Transportation and the Federal Bureau of Investigation.
Spokane Woman Sentenced for Embezzling over $28,000 from Coeur D’Alene Indian TribeRead the Press Release
COEUR D’ALENE – Debora J. Zimmerman, 46, of Spokane, Washington, was sentenced today in United States District Court to five years’ probation and four weekends in jail for theft from an Indian Tribal Organization, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Zimmerman to pay $28, 275.93 in restitution. She pleaded guilty to the charge on September 21, 2012.
According to court documents, between September 2008, and September 2010, Zimmerman, who was the Finance Operations Director for the Coeur d’Alene Tribal Housing Authority, stole money by issuing herself unauthorized paychecks, making unapproved purchases, and through other means.
“Those who are entrusted with public funds have a solemn obligation to act in the public interest,” said Olson. “Ms. Zimmerman violated the trust placed in her by the Coeur d’Alene Tribe. She put personal gain ahead of her public obligation. Appropriately, as a part of her sentence, Ms. Zimmerman must reimburse the Coeur d’Alene Tribe the money that she stole. I commend the thorough investigation in this case.”
The case was investigated by the Federal Bureau of Investigation and U.S. Department of Housing and Urban Development Office of Inspector General.
Smithfield Pair Convicted of Federal Gun ChargesRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court, Lionel Lamont COX, 40, of Smithfield, North Carolina, was convicted of his role in a gun trafficking scheme.
On August 29, 2012, a Federal Grand Jury returned a Criminal Indictment that charged COX and a co-defendant, Neville Samuel WARD Jr., 26, of Smithfield, North Carolina, with two counts of aiding and abetting the possession of a firearm by a convicted felon on or about May 14, 2012, and June 27, 2012. On February 14, 2013, after a two-day trial, a jury found COX guilty of both counts. WARD had previously pleaded guilty to both counts on January 24, 2013. Based on these convictions, COX and WARD each face up to 20 years in prison.
The evidence in the case demonstrated that on or about May 14, 2012, and June 27, 2012, COX and WARD were working at the Express Lube located in Smithfield, North Carolina. While working there, the evidence revealed that COX and WARD sold firearms on the premises of the Express Lube to another individual. Prior to these events, the evidence demonstrated that both COX and WARD had been convicted of felonies by the State of North Carolina. During the investigation, a third controlled buy of a firearm was conducted on May 21, 2012, involving COX and a fourth individual at the same Express Lube.
Investigation of this case was conducted by the Johnston County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Rudy E. Renfer represented the government.
Salina Man Sentenced for Purchasing Gun with Help of Straw BuyerRead the Press Release
TOPEKA, KAN. – A Salina man who used a straw buyer to purchase a gun has been sentenced to 46 months in federal prison, U.S. Attorney Barry Grissom said today.
Hashiem Jamil Ford, 34, pleaded guilty to one count of making a false statement regarding the purchase of a firearm. In his plea, he admitted that due to a 2011 felony drug conviction in Saline County District Court he was prohibited from possessing a firearm. On Dec. 5, 2011, he gave money to co-defendant Patricia Fetky to purchase a gun for him from Bob’s Pawn Shop East at 925 W. Lincoln Avenue in Salina. At Ford’s direction, Fetky purchased a Glock brand handgun by falsely representing herself as the actual purchaser.
Fetky was sentenced in December to two years probation.
Grissom commended the Salina Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Randy Hendershot for their work on the case.
Round Lake Beach Man Sentenced to More Than 5 Years in Federal Prison for Robbery of Fifth Third Bank in AlgonquinRead the Press Release
ROCKFORD — A Round Lake Beach, Ill. man was sentenced today in federal court for bank robbery. The defendant, Mohammed Nusrath Ali Khan, 42, was sentenced before U.S. District Judge Frederick J. Kapala to 62 months in federal prison for the robbery of the Fifth Third Bank, 450 South Randall Road, Algonquin, Ill., on May 23, 2012. In addition, the court also ordered Khan to pay restitution of $5,211 to Fifth Third Bank.
Khan pled guilty to the charge on Nov. 20, 2012. According to the written plea agreement, On May 23, 2012, at approximately 4:45 p.m., Khan entered the Fifth Third Bank branch on South Randall Road and approached a bank teller. Khan admitted that when he entered the bank, he had a BB gun concealed in the waistband of his pants under his shirt. Khan handed the Teller a note which stated that this was a robbery and demanded money. The note further stated Khan was armed with a gun and that the Teller was not to make a scene, give him any "dye packs," or activate any alarms or the defendant would shoot her. The Teller gave Khan $5,211 of the bank’s money from her teller drawer. Khan retrieved the note from the teller and then walked out of the bank. Khan has been in federal custody since his arrest by the Skokie Police Department on June 8, 2012.
The sentencing was announced by Gary S. Shapiro, Acting United States Attorney for the Northern District of Illinois; Thomas R. Trautmann, Acting Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation; Russell Laine, Chief of the Algonquin Police Department; and Anthony Scarpelli, Chief of the Skokie Police Department.
The government was represented by Assistant U.S. Attorney Joseph C. Pedersen.
Phillips County Man Sentenced on Federal Gun ChargeRead the Press Release
TOPEKA, KAN. – A man from Phillips County, Kan., has been sentenced to five years in prison on a federal gun charge, U.S. Attorney Barry Grissom said today.
Brian Eugene Post, 36, Phillipsburg, Kan., pleaded guilty to one count of unlawful possession of a firearm in furtherance of a drug trafficking crime. In his plea, he admitted that on March 7, April 11 and April 18, 2012, he sold methamphetamine and oxycodone to an undercover agent working for the Kansas Bureau of Investigation. On May 12, the agent arranged to meet Post for a sale and more drugs were exchanged. When he was arrested shortly thereafter, investigators found hydrocodone and hashish oil in his car, as well as a Smith and Wesson .40 caliber handgun.
Grissom commended the Kansas Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Randy Hendershot for their work on the case.
Pharmacist Charged with Conspiring to Distribute OxycodoneRead the Press Release
PITTSBURGH, Pa. - A former pharmacist at Walgreens has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotic laws, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on Feb. 13 and unsealed today, named Charles Brian Griffin, 27, of Pittsburgh, Pa.
According to the indictment, from March 2011 until February 2012, Griffin conspired together with others to distribute and possess with intent to distribute oxycodone, a Schedule II controlled substance.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric S. Rosen is prosecuting this case on behalf of the government.
The Drug Enforcement Administration conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Orlando Man Sentenced to 30 Months in Federal Prison for Selling Counterfeit DVDsRead the Press Release
Orlando, FL - U.S. District Judge G. Kendall Sharp today sentenced Dale Anthony Borders (38, Orlando) to two years and six months in federal prison for trafficking in counterfeit DVDs bearing the trademarks of Beachbody, LLC, Disney Enterprises, Inc., and Zumba Fitness, LLC. Borders pleaded guilty on November 29, 2012.
According to court documents, between March 26, 2009, and August 26, 2011, Borders used his company, 5A Novelty, to import counterfeit DVDs bearing counterfeit Disney, Zumba, and Beachbody trademarks into the United States. During that time, according to U.S. Customs and Border Patrol Protection (CBP), approximately 80 parcels containing counterfeit items had been shipped to Borders.
In March 2011, Beachbody served Borders and 5A Novelty notice that 5A Novelty was not a designated or approved retailer or distributor of Beachbody products. Beachbody also advised 5A Novelty of the copyright laws that prevent the unauthorized use of trademarks. Beachbody and eBay shut down the 5A Novelty website three times. Each time, Borders reestablished the website.
On August 18, 2011, CBP officers in Cleveland, Ohio, seized one box of counterfeit Beachbody exercise DVD boxed sets addressed to Borders' Orlando residence. Agents subsequently interviewed Borders at his residence, at which time Borders gave agents counterfeit Beachbody and Zumba exercise DVDs. Borders told the agents that he did not have any more DVDs or counterfeit items and did not have any pending orders. However, on August 29, 2011, during an inspection by a special agent with U.S. Immigration and Customs Enforcement's Homeland Security Investigations at the Orlando DHL distribution hub, two boxes of counterfeit Beachbody and Zumba exercise DVD boxed sets (60 units), intended for Borders, were seized. The shipping invoice listed the shipment as "Teaching Materials" and "Learning Materials."
This case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI). It was prosecuted by Assistant United States Attorney David Haas.
Oregon Woman Pleads Guilty to Being an Armed Career Criminal, Four Armed Bank Robberies, and Admits Committing Twenty-Five Other RobberiesRead the Press Release
EUGENE, Ore. – Lorinda Marie Goodin, 44, a resident of Lane County, Oregon, pled guilty today to committing two armed bank robberies in Multnomah County, two armed bank robberies in Lane County, and to possessing ammunition after having been previously convicted of eight bank robberies. Sentencing is scheduled for May 8, 2013.
According to court documents and statements made in court, Goodin pled guilty to robbing the Bank of the West in Portland on November 8, 2011, the Clackamas County Bank in Gresham on November 14, 2011, and the Pacific Continental Bank in Eugene on August 1, and again on November 25, 2011. Goodwin wore disguises, displayed what appeared to be a large caliber pistol, and threatened to shoot or kill bank tellers during the robberies.
The defendant was arrested on December 7, 2011 by an FBI agent and Springfield police officers after she was seen driving a stolen vehicle in Springfield, Oregon. She had a large caliber toy pistol in her possession. During a subsequent court-authorized search of Goodin’s residence, police found numerous rounds of .22 caliber ammunition.
Goodin also pled guilty in federal court to being a felon in possession of ammunition and agreed to be sentenced as an armed career criminal. She was previously convicted in 2003 for robbing banks in Multnomah, Clackamas and Marion counties.
Goodin further admitted that from August 2011 until her arrest in December 2011, she robbed twenty-five businesses located in Lane County, Multnomah County, Clackamas County, Wasco County and Douglas County. When committing her robberies, Goodin carried what appeared to be a large caliber pistol. During several of these robberies, Goodin had an accomplice.
The maximum penalty for possessing ammunition after being convicted of three violent felonies is 1ife imprisonment with a mandatory minimum 15 year prison term. The maximum sentence for armed bank robbery is a 25 year prison term. Goodin will be sentenced by Chief United States District Judge Ann Aiken on May 8, 2013, and has agreed that she should receive a 275 month federal prison term.
Goodin’s guilty pleas, admissions and agreed sentencing recommendation of 275 months in prison were part of her plea agreement with the United States Attorney’s Office for the District of Oregon, Clackamas County District Attorney Gregory Horner, Douglas County District Attorney Richard Wesenberg, Lane County District Attorney Alex Gardner, Multnomah County District Attorney Rod Underhill, and Wasco County District Attorney Eric Nisley. As part of the overall agreement, Goodin agreed that she will also plead guilty in Oregon state courts to the multiple robberies she admitted committing, and that she should receive a sentence of up to 18 years in prison for each robbery, to be served concurrently with her federal sentence.
This case was investigated by the Federal Bureau of Investigation, Portland Police Department, Clackamas County Sheriff’s Office, Eugene Police Department, Roseburg Police Department, The Dalles Police Department, Milwaukie Police Department, Gresham Police Department, the Springfield Police Department and the U.S. Bureau of Alcohol, Tobacco and Firearms. It is being prosecuted by Assistant U.S. Attorney Frank R. Papagni, Jr.
North Carolina Commodities Firm Owner Sentenced to 36 Months in Prison for Multimillion-dollar FraudRead the Press Release
The principal and co-owner of North Carolina-based Integra Capital Management LLC, was sentenced today to serve 36 months in prisonfor his role in a scheme to defraud commodities trading investors of more than $3.2 million, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney of the Western District of North Carolina Anne M. Tompkins. Nicholas Cox, 35, of Lexington, N.C., was sentenced by U.S. District Judge Max O. Cogburn Jr., in the Western District of North Carolina. In addition to his prison term, Cox was sentenced to serve three years of supervised release and ordered to pay $1,981,477 in restitution. On Dec. 22, 2012, Cox pleaded guilty in the Western District of North Carolina to one count of conspiracy to commit mail fraud, five counts of mail fraud and one count of conspiracy to commit money laundering. According to court documents, between September 2006 and January 2009, Cox and his co-conspirator, Rodney Whitney, 50, of Archdale, N.C.,the co-owner of Integra, engaged in a scheme to defraud investors in commodity trading pools operated by the firm. Integra was established purportedly for the purpose of pooling investors’ funds in commodity pools, and investing in commodity futures and foreign currency exchange trading. According to court documents, Cox and Whitney obtained and misappropriated more than $3.2 million in investor funds and fabricated account statements and tax forms to conceal their fraud. According to court documents, Cox and Whitney falsely represented, among other things, that Integra’s managers had more than 30 years of combined market experience; that Integra paid dividends of two to five percent of the investor’s initial investment, which was derived from Integra’s trading profits; and investors could remove their principal investments within five days upon giving notice to Integra. According to court documents, Cox and Whitney used the money invested by later investors to pay the monthly investment returns they had promised to earlier investors, to purchase real estate, to fund other business ventures and to purchase automobiles and other personal goods and services. On March 21, 2011, Whitney pleaded guilty to one count of conspiracy to commit mail and wire fraud and one count of conspiracy to commit money laundering. He was sentenced on Jan. 7, 2013, to 60 months in prison for his role in the scheme. The case was prosecuted by Trial Attorney Luke Marsh of the Criminal Division' s Fraud Section and Benjamin Bain-Creed and Kenny Smith of the U.S. Attorney’s Office for the Western District of North Carolina. The case was investigated by the U.S. Postal Inspection Service. This prosecution was done in coordination with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov .New York Man Indicted on Federal Charges Related to 10 Central Pennsylvania Fast Food Restaurant RobberiesRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that Maurice Lebron Davis, age 39, of Brooklyn, New York, was indicted today by a federal grand jury in Harrisburg. The indictment charges Davis with 10 counts of Interference with Commerce by Robbery.
According to United States Attorney Peter J. Smith, the charges against Davis are a result of allegations that Davis, and others, broke into and robbed or attempted to rob 10 fast food restaurants in Cumberland, Dauphin and York counties between December 2011 and February 2012. The restaurants include:
-Chick-fil-A, 6416 Carlisle Pike, Mechanicsburg, PA;
-Wendy’s, 3465 Simpson Ferry Road, Camp Hill, PA;
-Wendy’s, 427 N. 21st Street, Camp Hill, PA;
-Burger King, 3253 Paxton Street, Harrisburg, PA;
-Wendy’s, 2 Old Mill Road, Dillsburg, PA;
-Wendy’s, 71 S. Conestoga Drive, Shippensburg, PA;
-Burger King, 2000 N. Cameron Street, Harrisburg, PA;
-Wendy’s, 331 S. Hanover Street, Carlisle, PA;
-McDonald’s, 1176 Harrisburg Pike, Carlisle, PA; and
-Arby’s, 240 Cumberland Parkway, Mechanicsburg, PADavis was arrested by Upper Allen Township Police on February 24, 2012.
These cases were investigated by the Federal Bureau of Investigation, the Pennsylvania State Police and the police departments of Upper Allen Township, Middlesex Township, Harrisburg, Carroll Township, Swatara Township, Lower Allen Township and Silver Spring Township. The case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
New York City Man Pleads Guilty to Federal Counterfeiting ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a New York City man pleaded guilty Tuesday before Senior United States District Judge A. Richard Caputo to the charge of conspiracy to pass counterfeit United States currency.
According to United States Attorney Peter J. Smith, John Roldan, age 48, of Queens, New York, admitted to participating in a conspiracy to pass counterfeit United States currency in the Monroe County area. Roldan and another individual, Maribel Vasquez, age 46, also of Queens, New York, were arrested after an incident in April 2011 in which Roldan and Vasquez each used a counterfeit $100 bill to purchase merchandise at the Target store located in Stroudsburg, Monroe County. Officers from the Stroud Regional Police Department later conducted a traffic stop of the vehicle in which Roldan and Vazquez were traveling and seized approximately $7,000 in counterfeit United States currency.
The case was investigated by the Stroud Regional Police Department, the United States Secret Service, and Target store security personnel.
The case is being prosecuted by Assistant United States Attorney Robert J. O’Hara.
In this particular case, the maximum penalty under the federal statute is 5 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
New Town Man Pleads Guilty to Involuntary ManslaughterRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on Feb. 20, 2013, Merrill J. Mann II, 37, New Town, N.D., pleaded guilty in U.S. District Court to a charge of involuntary manslaughter.
On April 20, 2012, Mann was the driver of a 2004 Chevrolet pickup traveling northbound on BIA Route 2 west of New Town. At the time, Mann was under the influence of intoxicating liquor. Mann stopped his vehicle at a stop sign at the intersection with N.D. Highway 23 for a prolonged period of time. Mann pulled his vehicle into the intersection when a 2003 Dodge Caravan was headed westbound on Highway 23 carrying several passengers. Mann’s vehicle and the van collided. An 84-year-old passenger in the van was killed as a result of injuries sustained in the collision.
The charge of involuntary manslaughter carries a statutory maximum penalty of eight years in federal prison and a $250,000 fine.
The case was investigated by the Federal Bureau of Investigation, the Bureau of Indian Affairs – Fort Berthold Agency, the Three Affiliated Tribes Police Department, and the North Dakota Highway Patrol.
Sentencing for Mann has been scheduled for May 31, 2013, in U.S. District Court in Bismarck, N.D. at 10:00 a.m.
Assistant U.S. Attorney Rick Volk is prosecuting the case.
Maryland Man Sentenced for Possessing More Than 150,00 Images of Child PornographyRead the Press Release
LAFAYETTE , La.: U.S. Attorney Stephanie A. Finley announced today that Phillip Sessa Jr., 30, of Essex, Md., was sentenced Tuesday by U.S. District Judge Richard T. Haik to 97 months in prison and 15 years of supervised release for possessing child pornography.
According to court documents, an acquaintance of Sessa alerted authorities in November 2011 that Sessa’s personal computer at his Opelousas residence contained child pornography. A search of the residence turned up compact discs, computer hard drives and a phone containing child pornography. More than 1,000 videos depicting children in sexual situations were found. When questioned about the images on his computer, Sessa said some were of his girlfriend’s children who resided in the Baltimore, Md., area. Sessa was later released pending the investigation, and in December 2011, he moved back to Maryland. Over the course of the investigation, authorities seized more than 150,000 images and videos. Sessa was arrested in January 2012 and pleaded guilty July 23, 2012.
“Possessing obscene and illegal images is a serious crime that will not be tolerated,” Finley said. “Protecting children from exploitation is a priority for our office. We will not stop prosecuting those who promote the abuse of children by possessing such images.”
The Department of Homeland Security, Homeland Security Investigations and the Louisiana State Police-Criminal Investigations Division investigated the case. Assistant U.S. Attorney John Luke Walker prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice launched nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation andObscenity 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.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all ours to answer hotline calls.
Marietta resident pleads guilty to shooting bald eagleRead the Press Release
OXFORD, Miss. B Felicia C. Adams, United States Attorney for the Northern District of Mississippi, Luis Santiago, Special Agent in Charge of the United States Fish and Wildlife Service, and the Mississippi Department of Wildlife, Fisheries, and Parks, Chief of Law Enforcement Steve Adcock announced that:
Benjamin Tyler Wallace, 23, of Marietta, Mississippi, pled guilty on February 19th before United States Magistrate Judge David A. Sanders, in Aberdeen, Mississippi, to a one-count Information charging him with shooting a mature bald eagle in violation of the Bald and Golden Eagle Protection Act, 16 U.S.C. § 668, a class A misdemeanor. Wallace shot and killed the eagle while duck hunting in Itawamba County on December 2, 2012.
Following his guilty plea, Wallace was placed on probation for a period of one year, during which time Wallace will be prohibited from hunting in any manner or being present at any hunting camp or campsite anywhere in the world at any time during any season open to hunting. In lieu of a fine, Wallace was further ordered to forfeit to the Mississippi Department of Wildlife, Fisheries and Parks the boat, motor, trailer, and two firearms used in the commission of the offense.
United States Fish and Wildlife Service Special Agent in Charge Luis Santiago stated that: “We take our mission working with the Mississippi Department of Wildlife, Fisheries, and Parks and the citizens of Mississippi in conserving, protecting, and enhancing fish, wildlife, plants and their habitats very seriously, investigating those who choose to violate state and federal laws. They undermine the proud tradition of hunting for all hunters.”
This case was investigated by the United States Fish and Wildlife Service Office of Law Enforcement and the Mississippi Department of Wildlife, Fisheries, and Parks and was prosecuted by Assistant United States Attorney Robert J. Mims.
Local Couple Pleads Guilty to Theft of Copper from Radio TowersRead the Press Release
Two people pleaded guilty to malicious destruction of federally-licensed communications lines related to the theft of copper from four local radio towers, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
“These defendants admitted to breaking into and seriously damaging radio towers,” Dettelbach said. “We will continue to protect the infrastructure in our region.”
Thomas M. Carbone, 28, of North Royalton, and Katie M. Stanton, 23, of Cleveland, are scheduled to be sentenced on April 30.
On or about August 17 to 18, 2012, Carbone and Stanton unlawfully entered the property of Radio One on Ridge Road in North Royalton, Ohio, and willfully and maliciously destroyed and removed copper material from four radio-station towers situated on the property, according to court documents.
This unlawful removal of copper depleted the signal strength of the supported radio station, thereby impeding the station’s ability to broadcast emergency messages, according to court documents.
Emergency repairs cost nearly $11,000 while permanent repairs will cost an estimated $125,000, although specific figures are still being calculated, according to court documents.
This case is being prosecuted by Assistant United States Attorneys Thomas E. Getz and M. Kendra Klump. The case was investigated by the Federal Bureau of Investigation and the North Royalton Police Department.
Leader of Fraudulent Immigration-document Ring SentencedRead the Press Release
GRAND RAPIDS, MICHIGAN – Jacinto Morales-Martinez, 48, a citizen of Mexico who is also a previously-deported felon, was sentenced Tuesday to serve 60 months in a United States Federal prison for his leading role in a family-based document-trafficking ring that manufactured fraudulent immigration and identification documents for illegal aliens throughout Southwest Michigan. The scheme involved 11 charged defendants, all of whom have since been convicted of felonies including conspiracy to produce and sell fraudulent immigration documents, and of possessing and transferring such documents. U.S. District Judge Robert J. Jonker sentenced Morales-Martinez and included a 60-month concurrent sentence on a separate charge of returning to the United States after being deported following conviction for an aggravated felony.The scheme involved the defendants, most of whom were related and all of whom are themselves illegal aliens, producing high-quality documents such as Permanent Resident cards (“Green Cards”) and Social Security cards for persons they believed were illegal aliens. Despite their extensive efforts to avoid detection, a ten-month-investigation by the Grand Rapids office of U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI) culminated in the execution of five search warrants in Holland and Grand Rapids in mid-June 2012, the arrests of 14 undocumented aliens associated with the investigation, and the seizure of two document-production facilities.
In addition to the sentence for Jacinto Morales-Martinez, Judge Jonker previously imposed the following prison sentences: Juan Jose Morales-Martinez (34), was sentenced to 46 months; Ricardo Uriel Morales-Jimenez (21), was sentenced to 15 months; Rodolfo Esquivel (61) and Ledin Over Ovalle-Perez (29) were both sentenced to 12 months; Luis Alberto Morales-Jimenez (23) and Jacinto Jonathan Morales-Mendoza (19) were both sentenced to 10 months; Maria De La Luz Mendoza-Martinez (43), Giovanni Sanabria-Morales (29), and Amparo Mercado (36) were all sentenced to eight months; and Hugo Alexis Morales-Jimenez (22) was sentenced to six months. With the exception of Ovalle-Perez, who is a Guatemalan national, all of the Defendants are citizens of Mexico illegally present in the United States.
Commenting on the sentences, U.S. Attorney Patrick A. Miles Jr. stated, “Illegal immigration remains a serious law enforcement concern of the United States Government. People who engage in the production and trafficking of fraudulent government documents for profit are a major part of the problem, not a part of the solution. This Office will continue to aggressively investigate and prosecute such persons. The fact that this case was the fourth prosecution in a series of cases going back over eight years, directly reflects how relentless we are in shutting down the fraudulent document trade.”
William Hayes, Acting Special Agent in Charge of HSI Detroit, added, “Document and identity fraud is a serious crime motivated by greed. It affects real people and has far-reaching, serious implications for law-abiding Americans. This final conviction shuts down a sophisticated document mill and holds all of the individuals involved in this criminal activity accountable for their actions.”
The Grand Rapids office of HSI investigated the case. Assistant U.S. Attorney Hagen W. Frank, who serves as the principal of the Identity Theft and Cybercrime Task-Force of the U.S. Attorney’s Office, prosecuted it..
END
Last of Los Zetas Arms Traffickers ConvictedRead the Press Release
The Organized Crime Drug Enforcement Task Force (OCDETF) investigation revealed that a Laredo based co-defendant associated with Los Zetas needed someone to transport weapons from the Dallas area to Laredo and then to the Republic of Mexico for ultimate delivery to Los Zetas Drug Trafficking Organization.
Otilo and Ranferi Osorio were identified as co-conspirators in the Dallas area who were to deliver the weapons to other co-conspirators for transportation to Laredo. Co-defendants Pablo Cerda, 36, Nicolas Sanchez-Reyes, aka NICO, 50, and Obregon, operated out of the Laredo area and were tasked with receiving the shipment of weapons in Laredo and arranging for their transportation to Mexico.
On Nov. 9, 2010, agents set up surveillance at the parking lot area of a Wal-Mart located near I-35 in Lancaster, at which time agents observed a tractor trailer driver meet with Ranferi and Otilio Osorio who arrived in a Ford Explorer. Two large duffel bags believed to contain weapons were removed from the Explorer and placed inside the tractor. Agents then followed the tractor-trailer.
Obregon, Sanchez-Reyes and Cerda then coordinated the receipt of the weapons for ultimate transportation to Nuevo Laredo. Between Nov. 9 and 10, the men called each other regarding the logistics of the shipment and coordinated the delivery of the weapons in Laredo to another driver secured by Cerda who would transport the weapons to Mexico.
On Nov. 9, Webb County Sheriff’s deputies conducted a traffic stop in Laredo of tractor trailer transporting the weapons. At that time, Sanchez-Reyes called the driver’s phone and a deputy answered the call. Unaware of the situation, Sanchez-Reyes said he was looking for the driver who was supposed to bring him something, at which time the deputy informed the driver could not talk. After the stop, deputies located the two duffle bags and found 40 high-powered firearms consisting of various makes, models and calibers as well as 39 empty magazines. Agents then discovered that 37 of the 40 firearms recovered had obliterated serial numbers. The driver was arrested at the scene.
Co-defendants Otilo and Ranferi Osorio were indicted in Dallas and have since pleaded guilty and been sentenced. Earlier this year, Cerda and Sanchez-Reyes entered their pleas of guilty to the charge of conspiracy to export arms. Cerda, Sanchez-Reyes and Obregon are in custody and will remain in custody until their sentencing which has been set for March 27, 2013. The three are also pending State Charges for capital murder and engaging in organized criminal activity in the 49th District Court of Webb County before State District Court Judge Joe Lopez.The OCDETF investigation was conducted DEA and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Mary Lou Castillo is prosecuting the case.
Lam Nguyen Pleads Guilty to Theft of Government FundsRead the Press Release
LAM NGUYEN, age 40, of New Orleans, Louisiana, pled guilty in federal court today before U.S. District Judge Stanwood R. Duval, Jr., to theft of government funds, announced U. S. Attorney Dana Boente.
According to court documents, NGUYEN’s mother was receiving social security benefits before her death. When she died, these benefits should have terminated. However, NGUYEN continued to receive the benefit checks, which were sent to his residence. NGUYEN deposited the checks into his bank account. NGUYEN converted these funds to his personal use knowing that he was not entitled to receive those benefits.
NGUYEN faces a maximum term of imprisonment of ten (10) years, a fine of $250,000.00 and three (3) years of supervised release following any term of imprisonment. Sentencing is set for May 15, 2013.
The case was investigated by the United States Social Security Administration- Office of Inspector General, and prosecuted by Assistant United States Attorney Loan “Mimi” Nguyen.
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Lakeland Resident Sentenced to Prison for Firearms PossessionRead the Press Release
Tampa, FL - U.S. District Court Judge Virginia M. Hernandez Covington today sentenced Jonathan Oner (28, Lakeland) to a term of 6 years and eight months in federal prison for possession of a firearm by a convicted felon and felony possession of marijuana. Oner pleaded guilty to the offenses on November 16, 2012.
According to testimony and evidence presented at the plea hearing and sentencing, Oner was arrested by Lakeland Police officers in the early morning hours of July 15, 2012 after the officers responded to a shots fired call at a Lakeland apartment building. When the officers arrived at that location, they observed Oner, who began fleeing from them. Upon pursuing and catching Oner, the police found him to be in possession of a Llama 9mm pistol, loaded with 8 rounds of ammunition and a quantity of marijuana. Previously, Oner been convicted of a number of felony offenses and had not had his right to possess a firearm restored. As such, he was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), with assistance from the Lakeland Police Department. It was prosecuted by Assistant United States Attorney Jay Hoffer.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney Robert E. O’Neill, along with Julie Torres, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Lafayette Man Sentenced to 5 Years in Church Defacing CaseRead the Press Release
LAFAYETTE, La.: The U.S. Attorneys Office announced that Brian Toriano Crimiel, 35, of Lafayette, was sentenced today before U.S. District Court Judge Richard T. Haik to one year in prison for defacing Immaculate Heart of Mary Church and five years in prison for lying to a federal agent with time to be served concurrently.
Crimiel was ordered to pay $2,972 to the Immaculate Heart of Mary’s insurance company and $1,000 to St. James Baptist Church for damage to property. He also was ordered to serve one year of supervised release for defacing the church and three years of supervised release for lying to an FBI agent.
According to court documents, authorities discovered on Feb. 26, 2011 that someone had painted racial slurs on the Immaculate Heart of Mary Church and school on 12th Street in Lafayette. Crimiel later admitted to defacing the property, saying he was trying to frame his ex-girlfriend for the damages and threats, and left a number of pieces of evidence at the scene pointing to her as the culprit.
As part of his plea agreement, Crimiel also acknowledged that on Feb. 13, 2011, he defaced and damaged the St. James Baptist Church on Plum Street in Lafayette as well by writing racial slurs on the church with spray paint and pouring gasoline on the bushes near the front door with a threat that the church would burn.
Crimiel also admitted that he lied to an FBI agent when he denied using his cell phone on the morning of Feb. 13, 2011. Crimiel called 911 anonymously to advise authorities that he saw two women and one man trespassing on St. James Baptist Church property. He admitted later it was part of his scheme to frame his ex-girlfriend.
The FBI-Lafayette Resident Agency and the Lafayette Police Department investigated the case. Assistant United States Attorney James T. McManus prosecuted the case.
Knoxville Woman Sentenced to 30 Months in Federal Prison for Identity Theft SchemeRead the Press Release
KNOXVILLE, Tenn.- Adrianne Y. Thompson, 41, of Knoxville, Tenn., was sentenced on Feb. 20, 2103, by the Honorable Thomas W. Phillips, U.S. District Court Judge, to serve 30 months in federal prison for misusing the Social Security number of another person and aggravated identity theft. Thompson had previously pleaded guilty to the charges.
At the time she engaged in the criminal conduct, Thompson was employed at a cellular telephone store. Through her employment at the store, she obtained the Social Security number of her victim under the false pretense of determining the victim’s eligibility for a new cellular telephone. She then used the victim’s Social Security number to open a checking account at a bank in Knoxville, Tenn. After opening the checking account using the victim’s Social Security number, Thompson proceeded to use that checking account to write fraudulent checks.
U.S. Attorney William C. Killian stated, “Identity theft is a growing problem in our society that causes great harm to its victims. Under federal law, aggravated identity theft is punishable by a mandatory minimum term of two years in prison to be served consecutive to any other sentence. We will continue to use the aggravated identity theft statute to ensure that people who engage in this type of conduct spend time in federal prison.”
The investigation was led by the Knoxville Police Department’s Property Crimes Unit. Assistant U.S. Attorney Zachary Bolitho represented the United States.
Kentucky Inmate Charged with Threatening the Life of the President of the United StatesRead the Press Release
– Charges also include threatening the life of the First Lady
LOUISVILLE, Ky – A Kentucky inmate was charged by a federal grand jury meeting in Louisville, Kentucky, today with threatening to take the life of and inflict bodily harm upon the President of the United States and threatening to kill and inflict bodily harm upon the immediate family of the President of the United States, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to count one of the two count indictment, between May 23, 2012, and May 25, 2012, Anthony D. Holliman, age 35, of Oldham County, Kentucky, knowingly and willfully wrote and mailed a letter addressed to the President of the United States threatening to assault the President’s wife and children, and claiming that he would “blowe your brains out with a pistel,” and further, Holliman is alleged to have used racial epithets and written, “you better check me out because I don’t lie & I always do what I say Im going to do! Your dead …!!!”
The second count of the federal indictment alleges that between May 23, 2012 and May 25, 2012 Holliman wrote and mailed a letter addressed to First Lady Michelle Obama, threatening to sexually assault and take the lives of the First Lady and her daughters.
If convicted, Holliman faces no more than five years in prison for each charge, a fine of $500,000 and a three year period of supervised release. Holliman is currently serving a 35 year sentence in the Kentucky State Penitentiary.
Holliman is scheduled to appear before Magistrate Judge James D. Moyer, in Louisville, Kentucky, on March 26, 2012 at 9:30am.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the United States Secret Service.
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Kansas City Man IndictedOn Federal Armed Robbery ChargesRead the Press Release
KANSAS CITY, KAN. - A Kansas City man has been indicted on federal charges alleging he committed a string of armed robberies, U.S. Attorney Barry Grissom said.
Clifford L. Miller, 48, Kansas City, Mo., was indicted Wednesday on one count of bank robbery, ten counts of commercial robbery, and ten counts of brandishing a firearm during a robbery.
The indictment alleges Miller committed the following robberies:
- June 10, 2013, Capital City Bank, 120 SW 6th Street in Topeka, Kan.
- June 21, 2013, Cirilla’s store, 7258 State Avenue in Kansas City, Kan.
- June 21, 2013, Family Dollar at 1274 Merriam Lane in Kansas City, Kan.
- June 22, 2013, Dollar General, 2852 W. 47th, Kansas City, Kan.
- June 30, 2013, Family Dollar, 1402 S. 42nd, Kansas City, Kan.
- July 1, 2013, Dollar General, 2018 Metropolitan in Kansas City, Kan.
- July 3, 2013, Cirilla’s, 4301 Rainbow Boulevard, Kansas City, Kan.
- July 24, 3013, Advance America, 4625 Shawnee Drive, Kansas City, Kan.
- Aug. 4, 2013, GameStop, 9672 Quivira Road in Lenexa, Kan.
- Aug. 12, 2013, Dollar General, 2852 W. 47th in Kansas City, Kan.
- Sept. 21, 2013, Cirilla’s, 7258 State Avenue in Kansas City, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each robbery count and a penalty of not less than seven years and a fine up to $250,000 on each charge of brandishing a firearm. The Kansas City, Kan., Police Department, the Lenexa Police Department, the Topeka Police Department, the Raytown, Mo., Police Department and the FBI investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
OTHER INDICTMENTSRonnell Smith, Sr., 40, Oakland, Calif., is charged with one count of distributing cocaine. The crime is alleged to have occurred June 26, 2012, in Kansas City, Kan., and Oakland, Calif.
If convicted, he faces a penalty of not less than five years and a fine up to $5 million. The U.S. Postal Inspection Service investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.
Damon Douglas Griffin, 37, is charged with one count of distributing methamphetamine, one count of unlawful possession of a firearm in furtherance of drug trafficking and one count of unlawful possession of a firearm after a felony conviction. The crimes are alleged to have occurred Jan. 7, 2014, in Lawrence, Kan.
If convicted, he faces a penalty of not less than 10 years in federal prison and a fine up to $10 million on the methamphetamine charge, not less than five years and a fine up to $250,000 on the charge of possessing a firearm in furtherance of drug trafficking, and a maximum penalty of 10 years and a fine up to $250,000 on the other count. Special Assistant U.S. Attorney Erin Tomasic is prosecuting. The Kansas Bureau of Investigation investigated.
Erica Barajas-Duran, 39, who is not a citizen of the United States, is charged with unlawfully re-entering the United States after being deported. She was found Feb. 12, 2014, in Overland Park, Kan.
If convicted, she faces a maximum penalty of two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney David Zabel is prosecuting.
Felix M. Leal, 40, Leavenworth, Kan., is charged with two counts of distributing methamphetamine, one count of possession with intent to distribute marijuana, one count of unlawful possession of a firearm after a felony conviction and one count of unlawful possession of a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred in 2013 and 2014 in Wyandotte County, Kan.
Upon conviction, the crimes carry the following penalties:
Possession with intent to distribute methamphetamine: Not less than 10 years in federal prison and a fine up to $10 million.
Possession with intent to distribute marijuana: A maximum penalty of five years and a fine up to $250,000.
Unlawful possession of a firearm after a felony conviction: A maximum penalty of 10 years and a fine up to $250,000.
Possession of a firearm in furtherance of drug trafficking: Not less than five years and a fine up to $250,000.The FBI investigated. Assistant U.S. Attorney David Zabel is prosecuting.
Angel Guzman-Aviles, 26, is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred Feb. 3, 2014, in Kansas City, Kan.
If convicted, he faces a penalty of not less than 10 years in federal prison and a fine up to $10 million. The FBI investigated. Assistant U.S. Attorney David Zabel is prosecuting.
Travis W. Edwards, 35, Wichita, Kan., and Michael J. Strotkamp, 36, Peabody, Kan., are charged with one count of possession with intent to distribute methamphetamine. Edwards also is charged with an additional count of possession with intent to distribute methamphetamine. The crimes are alleged to have occurred Feb. 11 and 12, 2014, in Sedgwick County, Kan.
If convicted, they face a maximum penalty of 40 years in federal prison and a fine up to $2 million on each count. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
Carl M. Bray, 28, Kansas City, Mo., is charged with one count of unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred Nov. 26, 2013, in Kansas City, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Kansas City, Kan., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
Durayle D. Jackson, 24, Kansas City, Kan., is charged with one count of unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred Jan. 22, 2014, in Kansas City, Kan.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The Kansas City, Kan., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
Jemel T. Knox, 30, is charged with one count of unlawful possession of a firearm after a felony conviction and one count of unlawful possession of a sawed off shotgun. The crimes are alleged to have occurred Feb. 6, 2014, in Kansas City, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count. The FBI investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Justice Department Releases Spanish Language Video About Discrimination in Employment Eligibility VerificationRead the Press Release
The Civil Rights Division of the Justice Department announced today the launch of its first Spanish-language educational video. The video was developed by the Office of Special Counsel (OSC) for Immigration-Related Unfair Employment Practices to assist employers in avoiding charges of discrimination in the Employment Eligibility Verification Form I-9 process and to assist employees to be aware of their legal rights. OSC enforces the anti-discrimination provision of the Immigration and Nationality Act (INA), which prohibits employers from discriminating against work-authorized individuals in hiring, firing, and recruitment or referral for a fee, regardless of their citizenship status or national origin. The law additionally prohibits discrimination during the Form I-9 and E-Verify processes.
OSC developed the video to address an issue that frequently comes to OSC’s attention through calls to its hotline and charges filed by employees. Employers occasionally incorrectly believe that they need to reverify the employment authorization of lawful permanent resident workers when their Permanent Resident Cards expire. OSC’s new video illustrates this practice, explaining that is not permissible and may lead to claims under the anti-discrimination provision.
“We believe this video will help both employers and employees across the country understand employment eligibility verification rules and also help lawful permanent residents maintain their employment,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “Federal law prohibits discrimination in the employment eligibility verification process, and the Justice Department is committed to enforcing the law.”
The Spanish language video may be viewed at: www.youtube.com/watch?v=HLps_3sWJxk.
A version of the same video subtitled in English can be viewed at: www.youtube.com/watch?v=XWRSMNFxxKY.
The video is part of OSC’s series of educational videos launched in 2012. OSC also operates a hotline for employers and workers, frequently providing guidance to employers on how to avoid discrimination and educating employees on rights protected by the anti-discrimination provision. OSC offers live webinars to educate employers on avoiding workplace discrimination and to educate employees about their rights. The next Spanish language webinar will be held today at 3:00 pm. You can register on-line at http://www.justice.gov/crt/about/osc/webinars.php. For more information about protections against employment discrimination under the immigration law, call OSC’s worker hotline at: 1-800-255-7688 (1-800-237-2525, TDD for the hearing impaired); call OSC’s employer hotline at: 1-800-255-8155 (1-800-362-2735, TDD for the hearing impaired); send an e-mail to: [email protected]; or visit OSC’s website www.justice.gov/crt/about/osc.Justice Department Reaches Settlement with FTD Inc. to Resolve Immigration-Related Retaliation ClaimRead the Press Release
The Justice Department announced today that it reached an agreement with FTD Inc., to resolve allegations that the company retaliated against a man for asserting rights under the anti-discrimination provision of the Immigration and Nationality Act (INA).
The Justice Department initiated the investigation after receiving a complaint from a work-authorized immigrant that FTD rescinded the individual’s conditional job offer after a background check revealed a purported error in his Social Security account number. The man informed FTD that he was authorized to work in the United States and provided documents showing his status. The man also expressed concern to FTD that the company may be violating the anti-discrimination provision of the INA by refusing to hire him and threatened to pursue his legal rights under the INA’s anti-discrimination provision. FTD responded by terminating all communication with the individual.
Under the terms of the agreement, FTD has agreed to pay $1,800 in back pay to the man and $3,000 in civil penalties. FTD has also agreed to undergo Justice Department training on the anti-discrimination provision of the INA. The case settled prior to the Justice Department filing a complaint in this matter.
“People authorized to work in this country should not be afraid to dispute errors in databases relating to their employment eligibility or documents,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “It is unlawful to retaliate against an individual for asserting a right to work under the anti-discrimination provision of the INA.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. For more information about protections against employment discrimination under the immigration laws, call the OSC’s worker hotline at 1-800-255-7688 (1-800-237-2525, TDD for hearing impaired), call the OSC’s employer hotline at 1-800-255-8155 (1-800-362-2735, TDD for hearing impaired), sign up for a no-cost webinar at www.justice.gov/about/osc/webinars.php , email [email protected] or visit the website at www.justice.gov/crt/about/osc .
Justice Department Files Lawsuit Against Golden Corral Restaurant for Violation of the Americans with Disabilities ActRead the Press Release
The United States Attorney's Office for the Eastern District of Michigan announced today that it has filed suit against the Golden Corral restaurant in Westland, Michigan for violating the American's with Disabilities Act (ADA) by denying service to a mother and her minor children based on the appearance of the children's skin due to a genetic skin disorder.
The Justice Department's complaint, filed in the U.S. District Court for the Eastern District of Michigan in Detroit, alleges that the manager of the Golden Corral restaurant demanded that Danielle Duford and her four daughters leave the restaurant based on the appearance of the children's skin caused by a genetic skin disorder, epidermolysis bullosa, which causes blisters to form on the skin in response to minor injuries and temperature changes. Despite Ms. Duford informing the restaurant manager of her children's disability and repeatedly emphasizing that they did not have a contagious disease, the manager required the family to immediately leave the restaurant, claiming that he had received complaints from other customers. Title III of the ADA prohibits public accommodations, such as restaurants, from discriminating against people on the basis of disability, or their association with an individual with a disability, in the full and equal enjoyment of the goods or services offered. The lawsuit seeks an injunction against further discrimination, money damages for the victims of the unlawful discrimination, and civil penalties to be paid to the United States. The lawsuit is only an allegation of unlawful conduct by the defendants. The United States will bear the burden of proving the allegations at trial.
"The promise of the Americans with Disabilities Act is that disabled citizens should have full access to public life. We hope that this lawsuit will assist in expanding people's understanding of the range of disabilities and the obligations to treat all disabled citizens fairly under the law," said Barbara L. McQuade, the United States Attorney for the Eastern District of Michigan.
The case is being handled by Assistant U.S. Attorney Susan K. DeClercq in the U.S. Attorney's Office for the Eastern District of Michigan, in collaboration with the Disability Rights Section of the Civil Rights Division of the Justice Department.
More information about the ADA is available at the Justice Department's toll-free ADA Information line at (800) 514-0301 or (800) 514-0383 (TTY) and via the ADA website at http://www.ada.gov or through contacting the U.S. Attorney's civil rights hotline at 313-226-9151.Joshua Nettles Pleads Guilty to Receipt of Child PornographyRead the Press Release
JOSHUA NETTLES, age 37, of Covington, Louisiana, pled guilty as charged before the Honorable Martin L.C. Feldman to the indictment pending against him, announced United States Attorney Dana J. Boente. A federal grand jury returned a twocount indictment on December 13, 2012, charging NETTLES with receipt of child pornography and possession of child pornography.
According to court documents, NETTLES knowingly received and possessed digital images depicting the sexual exploitation of prepubescent minors, including images of victims younger than four (4) years old. A forensic review of NETTLES’S computer revealed that he had downloaded and saved approximately 1409 files and 14 videos depicting the sexual victimization of these children. NETTLES faces a mandatory minimum term of imprisonment of five (5) years and a maximum penalty of thirty (30) years, followed by up to a life term of supervised release, and a $500,000 fine. He may also be required to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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.
Sentencing in this matter has been scheduled for June 12, 2013, at 1:30 p.m. before the Honorable Martin L.C. Feldman.
This case was investigated by special agents from the Federal Bureau of Investigation. The prosecution of this case was handled by Assistant United States Attorney Jordan Ginsberg.
(Download Factual Basis )
Honduran National Sentenced to Federal Prison for PerjuryRead the Press Release
Tampa, Florida - U.S. District Judge Virginia M. Hernandez Covington today sentenced Jimmy Samir Mendoza-Valle (20, Honduras) to 15 months in federal prison for obstruction of justice and perjury charges. Mendoza-Valle pleaded guilty on November 30, 2012.
According to court documents, in June 2012, Mendoza-Valle was one of fourteen defendants in a federal drug-trafficking conspiracy case in the Middle District of Florida. A week prior to trial, Mendoza-Valle filed a motion to dismiss the indictment. The principal contention of his motion was that Mendoza-Valle was actually a minor and, accordingly, the United States should dismiss the indictment.
During the hearing on the motion before U.S. District Judge James S. Moody, Jr., on June 4, 2012, Mendoza-Valle lied under oath and claimed that he had been born on December 10, 1994, and that he was 17 years old. During the hearing, his counsel also offered into evidence a copy of a Honduran birth certificate of Mendoza-Valle, purportedly filed in 1993, reflecting a birth date of December 10, 1994. Subsequent evidence, including a legitimate birth certificate introduced by the United States on June 5, 2012, showed that Mendoza-Valle’s true date of birth was December 10, 1992, and that he was in fact 19 years old on June 4, 2012. At the conclusion of the hearing, Judge Moody ruled that the birth certificate offered by the government was Mendoza-Valle’s true birth certificate.
Mendoza-Valle has since admitted that he lied as to his true age and submitted a false birth certificate to the court during the hearing on June 4, 2012. By attempting to portray himself as a juvenile during that hearing, he admits to erroneously and falsely attempting to influence the hearing in an effort to get the charges against him dismissed.
This case was investigated by the Panama Express Strike Force, an OCDETF funded operation targeting maritime smuggling. Participating agencies include the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the United States Coast Guard Investigative Service (CGIS), the Joint Interagency Task Force - South (JIATFS), and the United States Marshals Service. It was prosecuted by Assistant United States Attorney Matthew Jackson and former Special Assistant United States Attorney Austin Shutt.
Hill District Man Gets Max for Gun CaseRead the Press Release
PITTSBURGH, Pa. - A resident of the Hill District section of Pittsburgh, Pa., has been sentenced in federal court to 10 years incarceration and three years supervised release on his conviction of violating federal firearm laws, United States Attorney David J. Hickton announced today.
Ernest Thomas Harris, a/k/a Pickle, a/k/a Michael Young, a/k/a Michael Ford, 42, was sentenced on Feb. 15, 2013, by United States District Judge Nora Barry Fischer.
In connection with the Feb. 15 sentencing, the court was advised that Harris was on video brandishing a loaded 40 S&W caliber semiautomatic Glock pistol at the Aces and Deuces bar located at 1400 Fifth Avenue on June 1, 2011. Harris had been previously convicted in multiple cases in the Court of Common Pleas of Allegheny County and one case in the U.S. District Court for the Western District of Pennsylvania. The convictions were for charges including assault, stolen property, theft, drug dealing, threats and firearms. Federal law prohibits anyone who has been convicted of a crime punishable by more than one year from possessing ammunition or a firearm.
Prior to imposing sentence, the defendant noted that his conviction on 34 previous charges "doesn't look good" and that he had been involved in multiple shootings in the past. He noted that he was a part of the "concrete Vietnam" of street life, resulting in him being shot several times and friends being shot or killed. He also noted that he had previously killed someone in "self-defense". Judge Fischer noted that the defendant had a significant criminal record and showed no convincing remorse for his past criminal behavior. The court determined that the maximum sentence of 10 years federal incarceration was warranted for the actions of Harris.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The gun in this matter was matched by the Allegheny County Crime lab to the one used during the April 6, 2011 murder of 19 year-old Stephon Green in the Hill District. Of the persons allegedly present at the scene of the murder, all have been indicted federally on firearms charges. In addition to Harris, Kedrin "Hoody" Turner faces a minimum of 15 years imprisonment as a result of his June 24, 2010 possession of a 9mm caliber firearm. Calvin "CK" Kane, III was sentenced to 37 months of federal imprisonment as a result of his Feb. 25, 2011, possession of a 45 Auto caliber firearm despite being subject to an active PFA (Protection From Abuse) court order as well as his Jan. 16, 2011 possession of a stolen 9mm caliber firearm. As a result of the federal, state and local investigation, Kane has been charged with the murder of Green and faces a March 11, 2013 trial before Allegheny County Court of Common Pleas Judge Phillip Ignelizi at case # 15977-2012.
In related matters, Bafata "B" Sullivan, the owner of the gun allegedly used by Kane to murder Green, faced federal firearms charges until he died of natural causes on May 9, 2012. Another Hill District felon, Carl "Baby Kong" Stitt, pleaded guilty to violating federal firearms laws and faces sentencing on April 26, 2013.
Individuals with information on the murder of Stephon Green are asked to call the Pittsburgh Bureau of Police Homicide Detectives at 412-323-7161.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Allegheny County Department of Labs and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Harris.
Hayward Woman Pleads Guilty to Filing False ClaimsRead the Press Release
OAKLAND, Calif. – Claudia Robinson, age 39, pleaded guilty yesterday for her role in a false tax refund scheme, United States Attorney Melinda Haag and Special Agent in Charge, IRS Criminal Investigation, Jose M. Martinez announced.
According to her plea agreement, between January 26, 2008, and February 12, 2008, Robinson filed false claims for tax refunds with the IRS in other people’s names. According to her plea, Robinson admitted that the claims listed on the returns were false because the information she listed was largely fictitious, with the exception of the individuals’ identities. Specifically, Robinson admitted the returns were all false because they indicated that: 1) the taxpayer earned income that he or she did not, in fact, earn; 2) the taxpayer lived at the defendant’s residence, her father’s residence, or her sister’s residence, when, in fact, this was false; 3) the taxpayer had a dependent or dependents, when, in fact, the taxpayer did not financially care for such dependent or dependents; and 4) the taxpayer listed on each tax return did not, in fact, view and sign the return.
Robinson also prepared a false income tax return in an individual’s name who did not ask Robinson to prepare a tax return on her behalf. According to court documents, Robinson contacted that individual and offered to pay her to tell the IRS agents that Robinson prepared the return at the individual’s request, which was not true. The Indictment charges Robinson with obstructing the IRS investigation for offering that individual a television in exchange for false testimony.
On September 15, 2011, Robinson, of Hayward, Calif., was charged in a 25-count indictment with wire fraud, false claims, identity theft, and obstructing the IRS. She pleaded guilty to eight counts of filing false claims.
The maximum statutory penalty for each count of False Claims, in violation of Title 18, U.S.C § 287, is five years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
In response to these types of cases, the Justice Department’s Tax Division issued a new directive to further the efforts of the Tax Division and help U.S. Attorneys’ Offices respond quickly and effectively to the challenges in stolen identity refund fraud cases. To further this goal, Tax Division Directive 144, which took effect on Oct. 1, 2012, was issued to streamline the process for prosecuting these offenses.
Denise Barton and Thomas Newman are the Assistant U.S. Attorneys prosecuting this case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation
Grand Jury Returns Indictment Charging Mark Allen Call with Two Counts of Bank Robbery in Connection with Robberies at Zions Bank Last WeekRead the Press Release
SALT LAKE CITY – A federal grand jury returned an indictment Wednesday morning charging Mark Allen Call, age 37, of Layton, with two counts of bank robbery. The indictment alleges Call robbed Zions Bank located at 1420 South 300 West in Salt Lake City twice – once on Feb. 13, 2013, and a second time on Feb. 14, 2013.
Call is scheduled to be arraigned on the charges Thursday at 3 p.m. before U.S. Magistrate Judge Evelyn Furse. The potential maximum penalty for each count of bank robbery is 20 years in prison and a fine of $250,000.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
The case is being investigated by the FBI and the Salt Lake City Police Department.
Fridley Felon Indicted for Possessing AmmunitionRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 22-year-old felon from Fridley was indicted for possessing 9-millimeter ammunition. Raphael Eric Matthews was charged with one count of being a felon in possession of ammunition.
The indictment alleges that on January 31, 2013, Matthews possessed the ammunition. Matthews was a passenger in a vehicle stopped for a traffic violation, and the ammunition was found on his person. Because he is a felon, Matthews is prohibited under federal law from possessing firearms or ammunition at any time. Matthews’s prior Hennepin County convictions include aggravated robbery (2007) and simple robbery (2012).
If convicted, Matthews faces a potential maximum penalty of ten years in federal prison. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the Minneapolis Police Department, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Surya Saxena.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Frankie Dushane Kindness 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 20, 2013, before Chief U.S. District Judge Richard F. Cebull, FRANKIE DUSHANE KINDNESS, a 39-year-old resident of Crow Agency, appeared for sentencing. KINDNESS was sentenced to a term of:
- Prison: 27 months
- Special Assessment: $100
- Restitution: $2,894.63
- Supervised Release: 3 years
KINDNESS was sentenced in connection with his guilty plea to depredation of government property.
In an Offer of Proof filed by Assistant U.S. Attorney E. Vincent Carroll, the government stated it would have proved at trial the following:
During the early morning hours of March 29, 2012, the FBI was contacted by the BIA Police Department (Crow Agency) regarding an officer involved shooting on River Road, north of Crow Agency. The FBI and BIA started an investigation. The investigation showed that a BIA Police officer was looking for a suspect in an unrelated domestic violence case. As the officer was out on patrol at approximately 2:30 a.m., he came across a car parked on River Road near Crow Agency. KINDNESS was in the driver's seat and her husband was in the passenger seat. The officer stopped his vehicle in front of KINDNESS' vehicle and got out. As the officer approached, KINDNESS put her vehicle in reverse and nearly ran off the road into a ditch as she backed up. She then put the car in drive and drove straight at the officer. KINDNESS swerved, missed the front of the BIA police vehicle, but hit the back bumper. The chase was then "on."
The officer chased KINDNESS' vehicle. Another BIA Police officer parked his police vehicle on River Road in an attempt to block, or slow, KINDNESS. The officer stood adjacent to his vehicle as KINDNESS approached, and he yelled for KINDNESS to stop. KINDNESS did not stop, and hit the front of the officer's vehicle.
The incidents were recorded on both BIA Police vehicles' video cameras. Additionally, paint markings on both police vehicles and on KINDNESS' vehicle show that KINDNESS hit the police vehicles.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that KINDNESS will likely serve all of the time imposed by the court. In the federal system, KINDNESS does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Former Youth Director Indicted on Additional Child Exploitation ChargesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Blue Springs, Mo., man was indicted by a federal grand jury today on additional charges for taking a minor across state lines for illegal sexual activity. Today’s charges were added to an earlier indictment for viewing and receiving child pornography over the Internet.
Dennis W. Myers, 52, of Blue Springs, was charged in a five-count superseding indictment returned by a federal grand jury in Kansas City, Mo. Myers formerly served as a youth director at churches in Independence, Mo., and in Arkansas. Today’s superseding indictment replaces an indictment returned on Dec. 12, 2012.
Today’s superseding indictment adds two additional counts of transporting a minor across states lines for illegal sexual activity. The indictment alleges that, on separate occasions between November 1993 and November 1995, Myers transported a child victim (identified as “Jane Doe #1”) across state lines to engage in sexual activity for which he could be charged with a criminal offense under Missouri statutes, that is, statutory sodomy or statutory rape.
The superseding indictment also contains all three counts that were part of the original indictment. The indictment contains the original allegations that Myers accessed the Internet in order to view child pornography between April 1 and Sept. 16, 2011. Myers is also charged with one count of receiving a video of child pornography over the Internet and one count of possessing child pornography.
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 Katharine Fincham. It was investigated by the Blue Springs, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Former U.S. Army Staff Sergeant Pleads Guilty in Tennessee <br /> to Bribery SchemeRead the Press Release
A former U.S. Army staff sergeant pleaded guilty today to accepting thousands of dollars in bribes from contractors while he was deployed to Iraq, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney for the Eastern District of Tennessee William C. Killian.
Richard A. Gilliland, 44, of Fayetteville, Tenn., pleaded guilty before U.S. Magistrate Judge Susan K. Lee in the Eastern District of Tennessee to a criminal information charging him with one count of conspiracy to accept illegal bribes.
According to court documents, from October 2007 until November 2008, Gilliland was a U.S. Army staff sergeant who worked with the Civil Affairs Unit at Camp Victory in Iraq and also was assigned as a pay agent responsible for U.S. government funds. As a pay agent, Gilliland was responsible for paying contractors to perform work in accordance with civil development objectives set forth by U.S. Army commanders in furtherance of the strategic mission of Coalition Forces in Iraq.
While deployed to Iraq in October 2007, Gilliland worked closely with two Iraqi contracting companies and their American representatives. Gilliland admitted to receiving approximately $27,200 and a laptop in bribes from American representatives of the contracting companies in return for his attempt to influence contracts for the Iraqi-based contractors and his assistance in acquiring used and non-working generators from the Defense Reutilization and Marketing Office. After receiving the bribes, Gilliland wired the cash payments he received back to the United States.
The case is being prosecuted by Special Trial Attorney Mark Grider of the Criminal Division’s Fraud Section, on detail from the Special Inspector General for Iraq Reconstruction (SIGIR), and Assistant U.S. Attorney John MacCoon of the Eastern District of Tennessee. The case was investigated by SIGIR.
Former Topeka Correctional Employee Sentenced on Federal Gun ChargesRead the Press Release
TOPEKA, KAN. – A former employee of the Topeka Correctional Facility has been sentenced to five years in prison on a federal gun charge, U.S. Attorney Barry Grissom said today.
Anastacio D. Gallardo, 33, Topeka, Kan., pleaded guilty to one count of unlawful possession of a firearm in furtherance of a drug trafficking crime. In his plea, he admitted he was driving a van on Aug. 8, 2012, when the Topeka Police Department stopped him for a traffic violation. A search of the van revealed a tool box between the front seats that was found to contain methamphetamine. Also in the toolbox were a box of baggies, two sets of scales, a radio-frequency scanner and two loaded handguns, including a Smith and Wesson .38 caliber revolver and a Glock .40 caliber pistol.
Grissom commended the Topeka Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Randy Hendershot for their work on the case.
Former Des Plaines Police Commander Charged with Making False Statements About DUI Arersts in Federal Funding ReportsRead the Press Release
CHICAGO — A former Des Plaines Police Department commander was charged today with making false statements in reports that concealed the suburban department’s failure to meet the requirements of a federally-funded impaired-driving enforcement campaign between 2009 and 2012. The defendant, TIMOTHY VEIT, allegedly inflated by 122 the number of arrests for driving under the influence and provided false information regarding blood-alcohol content levels for the fictitious arrests. As a result, the charges allege that Des Plaines fraudulently obtained $132,893 in federal reimbursement for overtime compensation.
Veit, 55, of Mt. Prospect, was with the Des Plains Police Department for 31 years and was commander of the support services division until he retired last year. He was charged with one count of making false statements in a felony information that was filed today. No date has been set yet for his arraignment in U.S. District Court.
The charges were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Michelle McVicker, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Transportation Office of Inspector General.
According to the charges, the U.S. Department of Transportation’s National Highway Traffic Safety Administration funded grants to state and local law enforcement agencies to conduct highway safety programs, including the Sustained Traffic Enforcement Program (STEP). Locally, the grants were administered through the Illinois Department of Transportation. The STEP grants required intensive enforcement of specific traffic laws, coupled with other measures, at specific times of the year, particularly on major holidays when alcohol-involved and unbuckled fatalities were highest.
Veit served as project director for the Des Plaines Police Department’s participation in STEP enforcement campaigns and was responsible for certifying the department’s compliance with its terms and conditions, including the performance objective that grant recipients average at least one DUI arrest for every 10 hours of overtime worked by officers on impaired-driving enforcement.
STEP grant participants paid the program costs from local funds and then, after each enforcement campaign, submitted claims for reimbursement that covered overtime pay for officers, mileage, and equipment. The reimbursement forms required such information as the identity of the project director, the total officer hours worked during each campaign, and the number of specific enforcement actions, such as DUI arrests, along with the blood-alcohol content level for each DUI arrest. Between 2009 and 2012, the Illinois Transportation Department authorized a total of $170,366 in STEP funds for Des Plaines’ impaired-driving enforcement efforts.
After Veit collected and reviewed accurate information regarding the number of citations, including DUI arrests, issued by Des Plaines officers during each enforcement campaign, the 3 charges allege that he then intentionally inflated the number of DUI arrests and provided false information about blood-alcohol content levels in the reimbursement forms. Overall, between 2009 and 2012, Veit reported a total of 152 DUI arrests during STEP campaigns, when he knew that only 30 had actually occurred. The numbers allegedly reported and actually occurring in each year were: 2009 – 27 and 13; 2010 – 47 and 8; 2011 – 62 and 8; and 2012 – 16 and 1.
As a result of the false information that Veit allegedly provided, he caused a loss of $132,893 in federal funds that were reimbursed to the City of Des Plaines for impaired-driving enforcement campaigns.
The government is being represented by Assistant U.S. Attorney Megan Church.
Making false statements carries a maximum penalty of five years in prison and a maximum fine of $250,000. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that the charges are not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Information
Former Congressman Jesse L. Jackson, Jr. Pleads Guilty to Conspiring to Defraud Campaign of More Than $750,000He and His Wife Used Campaign Funds for Wide Range of Personal Expenses; Sandra Stevens Jackson Pleads Guilty to Tax ChargeRead the Press Release
WASHINGTON – Former Congressman Jesse L. Jackson, Jr., 47, pled guilty today to conspiring to defraud his re-election campaigns of about $750,000 in funds that were used to pay for a range of personal items and expenses, including jewelry, fur capes and parkas, high-end electronics, celebrity memorabilia, furniture, kitchen appliances, and a home renovation project.
Jackson, who has residences in Chicago and Washington, D.C., also admitted taking steps to conceal seven years of illegal activities, including the filing of false and misleading reports with the Federal Election Commission (FEC) and the U.S. House of Representatives.
Jackson’s wife, Sandra Stevens Jackson, 49, a former Chicago alderman, pled guilty in a separate proceeding to filing false tax returns for her role in the scheme.
The guilty pleas, which took place this morning in the U.S. District Court for the District of Columbia, were announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Richard Weber, Chief of the Internal Revenue Service-Criminal Investigation (IRS-CI).
Jesse Jackson, Jr. pled guilty to one count of conspiracy to commit wire fraud, mail fraud and false statements. The Honorable Robert L. Wilkins scheduled sentencing for June 28, 2013. The charge carries up to five years in prison, a fine of up to $250,000 and other penalties. Under federal sentencing guidelines, the parties have agreed that the applicable range for the offense is 46 to 57 months in prison and a fine between $10,000 and $100,000.
As part of the plea agreement, Jesse Jackson, Jr. will be required to pay any restitution ordered by the Court and forfeit about $750,000 in proceeds and property from the scheme. Among other items, he must forfeit a mink cashmere cape; a mink reversible parka; a guitar signed by pop legend Michael Jackson; and various memorabilia associated with historic figures and various celebrities.
Sandra Stevens Jackson is to be sentenced July 1, 2013, also by Judge Wilkins. The tax charge carries up to three years in prison, a fine of up to $250,000, and other penalties. According to the government’s calculations, which may be disputed at sentencing, the applicable range for this offense under federal sentencing guidelines is 18 to 24 months in prison and a fine between $4,000 and $40,000.
Jesse Jackson, Jr. was elected to Congress in 1995 and served until November 2012 as the representative for the 2nd Congressional District of Illinois. According to the government’s evidence, Jackson and his wife carried out the fraud scheme from in or about August 2005 until in or about April 2012. Rather than using funds donated to the Campaign as they were intended to be used – to pay for legitimate expenses associated with Jackson’s re-election – the Jacksons used a substantial portion of the contributed funds for personal expenditures.
According to the government’s evidence, Jesse Jackson, Jr. made direct expenditures from the Campaign’s accounts for personal expenses, totaling approximately $57,792. In addition, he and his wife used credit cards issued to the Campaign to make purchases for personal expenses, totaling approximately $582,773. Finally, Jackson provided his wife and a congressional staffer, known in court documents as “Person A,” approximately $112,150 solely for the purpose of engaging in transactions that benefited the Jacksons.
“Today’s guilty plea is nothing short of tragic,” said U.S. Attorney Machen. “Jesse Jackson, Jr. entered public life with unlimited potential, but squandered his bright future by engaging in a self-destructive course of conduct that was staggering in both degree and scope. For seven years, Mr. Jackson betrayed the very people he inspired by stealing their campaign donations to finance his extravagant lifestyle. His fall from grace will hopefully chasten other leaders who are tempted to sacrifice their ideals and integrity to line their own pockets.”
"Today, Mr. Jackson admitted to engaging in a conspiracy to defraud his constituents by using money donated to his re-election campaign for his own personal use,” said Assistant Director in Charge Parlave of the FBI. “But Mr. Jackson’s scheme did not stop there, as he then knowingly withheld information about his campaign finances from the FEC and IRS. This investigation and these guilty pleas demonstrate that the FBI and our law enforcement partners will continue to pursue all allegations of public corruption and prove that no one in this country is above the law, to include those who make our laws.”
“Public officials hold positions of trust. While the vast majority of public officials are hard-working and dedicated, fraud and corruption at any level of public service breaches this trust,” said IRS-CI Chief Weber. “IRS-CI stands committed to investigating those officials, regardless of political status, who ignore their pledge to the American public and, instead, take a path of greed and corruption. Mr. Jackson disregarded his pledge to America by using campaign funds for his own personal expenses. Then, he attempted to conceal his spending by filing false and misleading reports with the FEC and the House of Representatives. Mrs. Jackson also took steps to conceal the income by willfully underreporting their income on their joint U.S. Individual Income Tax Returns for a six-year period. This case should serve as a strong warning to those who might consider similar behavior. No one is above the law and everyone is accountable for their misdeeds.”
Framework of the Scheme:
According to the government’s evidence, Sandra Stevens Jackson had a series of roles in Jackson’s re-election campaigns, including treasurer, from about January 2005 to about November 2006; consultant, from at least 2008 to about November 2012, and campaign manager, starting in 2011.
“Person A” also served different roles over the years, including: assistant treasurer for the campaign, from about January 2005 through about November 2006; treasurer, from about January 2007 through about June 2008, and staff member for Jackson’s Washington, D.C. congressional office, starting in or around June 2008.
According to the government’s evidence, money was channeled from the Campaign to the Jacksons in the following ways:
DIRECT EXPENDITURES: Jackson made $57,792 in direct expenditures from the Campaign’s bank account from January 2006 through July 2011. In July 2007, for example, he withdrew $43,350 in Campaign funds to purchase an official check made payable to a jeweler for a men’s gold-plated Rolex watch. In addition, he used $14,442 in Campaign funds to pay down balances on person credit cards maintained by the Jacksons.
CREDIT CARD EXPENDITURES: The Campaign maintained a credit card account, “Jackson for Congress,” from at least August 2005 through August 2012. Individual credit card members on this account included Jackson and his wife. During this period, the Jacksons used the credit cards to purchase merchandise and services that were personal in nature, including high-end electronic items; a washer, a dryer, a range and refrigerator; collector’s items; clothing, food and supplies; movie tickets; health club dues; personal travel, including a holistic retreat, and personal dining expenses.
All told, Campaign funds were used to pay $582,773 of these purchases. During the conspiracy, the Jacksons made approximately 3,100 purchases that were personal in nature. A large number of these personal expenditures fit into these categories:
- Restaurants, nightclubs, and lounges, approximately $60,857.
- Airfare, approximately $31,700.
- Sports clubs and lounges, including gym membership, approximately $31,700.
- Tobacco shops, approximately $17,163.
- Alcohol, approximately $5,814.
- Dry cleaning, approximately $14,513.
- Grocery stores, approximately $8,046.
- Drug stores, approximately $6,095.
OTHER EXPENDITURES: In March 2006, Jackson directed that a $36,000 check from the Campaign be issued to his wife’s business for billboard expenses. Sandra Stevens Jackson transferred this money from the business account to a personal account. Jackson and his wife, who controlled the personal account, used nearly all of the money that purportedly was for billboard expenses to pay down personal debts.
Jackson paid “Person A” with funds from the campaign account so that “Person A” could pay expenses on behalf of Sandra Stevens Jackson, or, in some instances, give cash to Jackson. The Campaign issued about $76,150 in checks to “Person A” from about October 2008 until about March 2012, even though “Person A” actually was entitled to only $11,409 for his work. “Person A” then expended nearly all of the remaining $64,741 for the personal benefit of Jackson and his wife. Examples of this scheme include:
- “Person A” used checks from the Campaign to provide Jackson with $15,700, which Jackson deposited into personal accounts he maintained for his own use.
- “Person A” used checks from the Campaign to pay down the credit card balance of Jackson and his wife by $4,800.
- “Person A” used checks from the Campaign to pay for $26,347 worth of work performed on the Jacksons’ home.
GIFTS AND LOANS: At Jackson’s direction, two companies made payments on the balance of a personal credit card of Jackson and his wife. The owner of an Illinois consulting firm issued a check in 2009 for $3,500 from a business account to pay down the balance of a personal credit card. The owner of an Alabama-based family issued a check for $25,000 from a corporate account in 2011, also to pay down a personal credit card balance.
Filing of False and Misleading Reports:
According to the government’s evidence, the Jacksons took steps from 2005 until 2012 to ensure that materially false and misleading reports were filed with government entities. These reports were filed with the FEC and the House of Representatives. These actions were critical to carrying out the conspiracy because they enabled the conduct to continue without question for a lengthy period of time and without the questions from regulators and the public that likely would have ensued had truthful, accurate reports been filed.
Campaigns are required to periodically file reports with the FEC reflecting contributions and expenditures during the reporting period. Campaigns are responsible for reviewing credit card statements and itemizing expenditures exceeding $200. They also are to itemize in cases in which a particular vendor receives more than $200 during the election cycle.
Jackson and his wife, on numerous occasions, directed “Person A” not to itemize the personal expenditures made on the Campaign credit cards. Additionally, they knowingly and intentionally provided “Person A” with false justifications for the expenditures, causing “Person A,” in turn to prepare false reports for submission to the FEC.
For example, in May 2008, “Person A” reported that the Campaign spent $1,553 in January 2008 at a Chicago museum for a fundraiser. In fact, Jackson spent these funds to purchase porcelain collector’s items. In July 2008, “Person A” reported that the Campaign spent $387 for equipment for office repairs. Jackson actually used this money to purchase grass seed and fertilizer for the lawn at his Chicago home.
As a member of Congress, Jackson was required annually to file a financial disclosure statement with the House of Representatives. He failed to report the funds that he and his wife used in defrauding the Campaign. In addition, he failed to report that he was the beneficiary of undisclosed expenditures made by third parties.
Income Tax Returns:
In her guilty plea, Sandra Stevens Jackson admitted to filing false tax returns for calendar years 2006 through 2011. According to the government’s evidence, she knowingly and willfully failed to report nearly $570,000 in taxable income for those tax years. This led to an estimated tax loss of approximately $159,000.
In announcing the guilty pleas, U.S. Attorney Machen, Assistant Director in Charge Parlave and Chief Weber commended the work of those who investigated the case for the FBI and IRS-CI. They also expressed appreciation for the assistance provided by the U.S. Marshals Service on the asset forfeiture aspects of the case. In addition, they commended those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Tasha Harris, Lenisse Edloe and Gail Price, and former Paralegal Specialist Sarah Reis.
Finally, they acknowledged the work of Assistant U.S. Attorneys Matt Graves, Michael K. Atkinson, and Jonathan W. Haray, of the Fraud and Public Corruption Section of the U.S. Attorney’s Office for the District of Columbia, who are investigating and prosecuting the matter, as well as Assistant U.S. Attorneys Catherine K. Connelly and Anthony Saler, of the Asset Forfeiture and Money Laundering Section.
13-061Former Bishop of Trumbull Church Pleads Guilty to Investor Fraud OffensesRead the Press Release
February 20, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that JULIUS C. BLACKWELDER, 59, of North Dakota, formerly of Stratford, pleaded guilty today before Senior United States District Judge Ellen Bree Burns in New Haven to federal wire fraud and money laundering offenses stemming from an investor fraud scheme.
“This defendant abused his position of trust as a leader in his church to defraud fellow church members and others out of hundreds of thousands of dollars, much of which he used to construct a waterfront home,” stated U.S. Attorney Fein. “I commend the U.S. Postal Inspection Service, SIGTARP, IRS-Criminal Investigation, Connecticut Department of Banking and our other law enforcement partners who are working diligently to protect investors by identifying and rooting out fraudulent financial schemes.”
According to court documents and statements made in court, beginning in 2005, BLACKWELDER persuaded individuals to invest their money with him as part of an investment pool known as the “Friend’s Investment Group.” At the time, BLACKWELDER was the Bishop of the Bridgeport Ward of the Church of Jesus Christ of Latter-day Saints located in Trumbull, and he solicited investments from, among others, members of his congregation.
BLACKWELDER misrepresented to investors that he would invest their money in safe, long-term commodities futures contracts, and that he was an experienced and successful commodities investor. In some instances, BLACKWELDER guaranteed investors’ principal and a specific return on their investment. He documented his misrepresentations to investors in promissory notes, offering memoranda, and account updates that he prepared.
In fact, BLACKWELDER used investors’ money to pay his own expenses, which included repaying earlier investors in the scheme, building a waterfront home in Stratford, and repaying personal bank loans, including a line of credit from a Troubled Asset Relief Program (TARP) recipient bank.
Through this scheme, BLACKWELDER defrauded investors of more than $400,000.
BLACKWELDER pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of money laundering, which carries a maximum term of imprisonment of 10 years. Judge Burns has scheduled sentencing for May 15, 2013.
This matter is being investigated by the United States Postal Inspection Service, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), the Internal Revenue Service – Criminal Investigation, and the State of Connecticut Department of Banking. The case is being prosecuted by Assistant United States Attorney Jonathan N. Francis and Deputy United States Attorney Deirdre M. Daly.
The Connecticut Securities, Commodities and Investor Fraud Task Force investigates matters relating to insider trading, market manipulation, Ponzi schemes, investor fraud, financial statement fraud, violations of the Foreign Corrupt Practices Act, and embezzlement. The Task Force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service – Criminal Investigation; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of Justice’s Criminal Division, Fraud Section and Antitrust Division; U.S. Securities and Exchange Commission (SEC); U.S. Commodity Futures Trading Commission (CFTC); Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Office of the Chief State’s Attorney; State of Connecticut Department of Banking; Greenwich Police Department and Stamford Police Department.
Citizens are encouraged to report any financial fraud schemes by calling, toll free, 855-236-9740, or by sending an email to [email protected].
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Albuquerque Corrections Officer Pleads Guilty to Obstruction of JusticeRead the Press Release
Matthew Pendley, 26, a former corrections officer at the Bernalillo County Metropolitan Detention Center (MDC) in Albuquerque, N.M., pleaded guilty today to one count of obstructing justice when he lied to law enforcement during their investigation of the assault on an inmate at the hands of another corrections officer.
According to court documents, during the early morning hours of Dec. 21, 2011, Pendley was assigned to the Receiving-Discharge-Transfer (RDT) Unit at MDC where individuals are brought to be booked soon after they are arrested. During the course of his shift, Pendley entered the shower room/dress out area and witnessed Demetrio Gonzales, another corrections officer, assaulting an inmate. The inmate was not posing a physical threat to anyone, and therefore, the assault was not justified. There was no legitimate law enforcement purpose for Gonzales to use force on the inmate. As a result of the assault, the inmate sustained injuries and began bleeding. When the Bernalillo County Sheriff’s Office (BCSO) began investigating, instead of telling detectives that he witnessed the assault, Pendley lied, claiming that he did not remember what Gonzales was doing in the shower room/dress out area.
A sentencing date has not yet been set.
Demetrio Gonzales previously pleaded guilty to violating the civil rights of the inmate by choking and striking the inmate multiple times. He was sentenced on Jan. 8, 2013, to 33 months in prison followed by three years of supervised released.
A third former MDC corrections officer, Kevin Casaus, was also indicted by a federal grand jury in June 2012 on related charges. Casaus is charged with violating the victim’s civil right rights when he shoved and struck the victim while in the shower area/dress out area. Casaus is further charged with obstruction of justice and falsification of records, first for making false statements to detectives of the BCSO and then for falsifying his incident report. Casaus’ trial is set for March 4, 2013. He is presumed innocent unless proven guilty.
This case is being investigated by the Albuquerque Division of the FBI and is being prosecuted by Assistant U.S. Attorney Mark T. Baker for the District of New Mexico and Trial Attorney Fara Gold of the Civil Rights Division of the U.S. Department of Justice.
Former Albuquerque Corrections Officer Pleads Guilty to Obstruction of JusticeRead the Press Release
ALBUQUERQUE – Matthew Pendley, 26, a former corrections officer at the Bernalillo County Metropolitan Detention Center (MDC) in Albuquerque, N.M., pleaded guilty today to one count of obstructing justice when he lied to law enforcement during their investigation of the assault on an inmate at the hands of another corrections officer.
According to court documents, during the early morning hours of Dec. 21, 2011, Pendley was assigned to the Receiving-Discharge-Transfer (RDT) Unit at MDC where individuals are brought to be booked soon after they are arrested. During the course of his shift, Pendley entered the shower room/dress out area and witnessed Demetrio Gonzales, another corrections officer, assaulting an inmate. The inmate was not posing a physical threat to anyone, and therefore, the assault was not justified. There was no legitimate law enforcement purpose for Gonzales to use force on the inmate. As a result of the assault, the inmate sustained injuries and began bleeding. When the Bernalillo County Sheriff’s Office (BCSO) began investigating, instead of telling detectives that he witnessed the assault, Pendley lied, claiming that he did not remember what Gonzales was doing in the shower room/dress out area.
A sentencing date has not yet been set.
Demetrio Gonzales previously pleaded guilty to violating the civil rights of the inmate by choking and striking the inmate multiple times. He was sentenced on Jan. 8, 2013, to 33 months in prison followed by three years of supervised released.
A third former MDC corrections officer, Kevin Casaus, was also indicted by a federal grand jury in June 2012 on related charges. Casaus is charged with violating the victim’s civil right rights when he shoved and struck the victim while in the shower area/dress out area. Casaus is further charged with obstruction of justice and falsification of records, first for making false statements to detectives of the BCSO and then for falsifying his incident report. Casaus’ trial is set for March 4, 2013. He is presumed innocent unless proven guilty.
This case is being investigated by the Albuquerque Division of the FBI and is being prosecuted by Assistant U.S. Attorney Mark T. Baker for the District of New Mexico and Trial Attorney Fara Gold of the Civil Rights Division of the U.S. Department of Justice.
Federal Jury Finds Two Guilford Women Guilty of Overseeing “gifting Tables” Pyramid SchemeRead the Press Release
February 20, 2013David B. Fein, United States Attorney for the District of Connecticut, and William P. Offord, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that a federal jury in Hartford has found DONNA BELLO, 56, and JILL PLATT, 65, both Guilford, guilty of conspiracy, tax and wire fraud offenses related to their involvement in a pyramid scheme known as “Gifting Tables.” The trial before Chief United States District Judge Alvin W. Thompson began on January 24 and the jury returned its verdict this afternoon after deliberating for approximately two hours.
“As the jury’s swift verdict of guilty on all counts makes clear, ‘Gifting Tables’ are pyramid schemes and illegal, plain and simple,” stated U.S. Attorney Fein. “These defendants enriched themselves while fraudulently misrepresenting material facts about the Gifting Tables and conspired to hide their income from the IRS. I commend the agents of IRS Criminal Investigation for their thorough investigation of this matter, which is ongoing.”
“I’m pleased to see that the jury saw that the ultimate purpose was the enrichment of the defendants,” stated IRS Criminal Investigation Special Agent in Charge Offord. “IRS Criminal Investigation remains committed to investigating schemes like these in an effort to protect the financial well-being of the American public and to ensure that everyone pays their fair share of taxes.”
According to the evidence presented during the trial, a Gifting Table is configured as a four-level pyramid, with eight participants assigned to the bottom row, four participants assigned to the third row, two participants assigned to the second row, and one participant assigned to the top row. The top row participant is referred to as the “Dessert,” the two participants on the second row as “Entrees,” the four participants on the third row as “Soup and Salads,” and the eight participants on the bottom row as “Appetizers.” To join a Gifting Table, new participants were required to pay $5,000, typically cash, to the Dessert, that is, the participant occupying the top position on the pyramid. The $5,000 payment, which was fraudulently characterized as a gift, secured the new participant a position as an Appetizer on the bottom row. Participants moved from the bottom row of the pyramid and progressed through a Gifting Table by recruiting additional people to join. When eight new participants joined a Gifting Table, each having made a $5,000 “gift” to the person occupying the Dessert position at the top of the pyramid, the Dessert left the Gifting Table and kept the $40,000 paid by the eight new participants. That particular Gifting Table was then split, with the two participants occupying the Entree position on the second row moving to the top position (Dessert) of two new pyramids. The other incumbent members of the Gifting Table moved up a row on one of the two newly-formed pyramids, and the search for 16 new participants began. The success of the Gifting Tables depended on new participants joining and making the $5,000 “gift.”
From approximately 2008 to 2011, BELLO and PLATT oversaw and profited from this Gifting Tables pyramid scheme. The defendants recruited individuals to join the scheme, prepared and distributed materials to recruits that contained false representations, and misrepresented to recruits and participants that Gifting Tables was not a pyramid scheme. Also, in May 2010, the defendants attempted to intimidate a participant who had questioned the legality of the Gifting Table scheme.
BELLO and PLATT also conspired to defraud the Internal Revenue Service by misrepresenting to recruits and participants that monies given and received during the scheme were legally considered tax-free “gifts” under the IRS code and that lawyers and accountants had approved Gifting Tables as legal ventures that generated tax-free proceeds. In addition, BELLO and PLATT filed false tax returns that failed to report income generated from the scheme.
Evidence at trial included several emails, including an email sent by Platt in March 2009 that told a participant: “It’s sort of a joke that I refer to our freezer as the ATM.” Later in March 2009, Bello complained to Hopkins and another individual about two recruits, stating: “They have had enough parties. Its [sic] costing us a small fortune in their food and wine delights. No more parties until they commit with the cash.”
In June 2009, Bello sent an email that said “I am not a . . . saint . . . . I’m teaching you all how to make an extra 80 grand a year . . . . Isn’t that enough?”
Later in October 2009, Bello emailed a participant and indicated “as women we like our own stash. Keep it in a safe. Keep it quiet because rather not have red flags raised. Hiring accountants and atterneys [sic] is costly.”
The jury found BELLO and PLATT guilty of one count of conspiracy to commit wire fraud, which carries a maximum term of imprisonment of 20 years, one count of conspiracy to commit to defraud the IRS, which carries a maximum term of imprisonment of five years, and 11 counts and four counts of wire fraud, respectively, charges that carry a maximum term of imprisonment of 20 years. Finally, BELLO was found guilty of two counts and PLATT of one count of filing a false tax return, a charge that carries a maximum term of imprisonment of three years.
“During the trial, the jury heard evidence that other Gifting Tables continue to operate in Connecticut,” stated U.S. Attorney Fein. “The jury’s verdict today is fair notice to anyone participating on Gifting Tables that any money received is taxable income and that they may be involved in an illegal pyramid scheme.”
Chief Judge Thompson has scheduled sentencing for May 15, 2013.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation, and is being prosecuted by Assistant United States Attorneys Douglas P. Morabito and Peter S. Jongbloed.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]