Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
5 April 2013
Narcotics Trafficker Sentenced to More Than 11 Years in Federal PrisonRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, today announced that ADRIAN PINZON-GALLARDO, also known as “The Mexican,” 27, a citizen of Mexico last residing in Bloomfield, Conn., was sentenced yesterday by United States District Judge Vanessa L. Bryant in Hartford to 135 months of imprisonment, followed by five years of supervised release, for trafficking heroin and cocaine. PINZON-GALLARDO also was ordered to pay a $50,000 fine.
According to court documents and statements made in court, in early 2011, the Drug Enforcement Administration in New Haven received information from the Connecticut State Police that an individual was selling substantial quantities of heroin from a residence at 28 Maltby Place in New Haven. Following a series of controlled purchases of heroin from that individual, the DEA New Haven Task Force initiated a court-authorized wiretap investigation. During the course of the wiretap investigation, it was determined that PINZON-GALLARDO was supplying large quantities of heroin and cocaine to several individuals in Connecticut, including drug distributors in New Haven.
On September 2, 2011, DEA personnel from both New Haven and Providence, R.I.., with the assistance of the Connecticut State Police, tracked PINZON-GALLARDO’s vehicle as it traveled from Connecticut to Providence where it was believed from wire intercepts that PINZON-GALLARDO intended to conduct a narcotics transaction. In Providence, the surveillance team observed PINZON-GALLARDO and an associate meet and then travel to a storage facility in Pawtucket, R.I. At the facility, PINZON-GALLARDO and his associate entered an open storage unit with several other individuals and closed the door. A short time later, PINZON-GALLARDO’s associate returned to the vehicle, retrieved a black backpack and walked back to the storage unit. PINZON-GALLARDO and his associate then returned to their vehicle and departed. After driving to Boston, PINZON-GALLARDO and his associate drove a circuitous route back to Connecticut when their vehicle was stopped by Connecticut State Police on Interstate 84 after it crossed the Connecticut border. A search of the car revealed three bricks of heroin, weighing a total of approximately 736 grams of heroin, and approximately $14,000 in cash.
A subsequent search of the storage unit in Rhode Island revealed approximately eight kilograms of heroin, including three kilograms that were contained within a black backpack similar to the one that PINZON-GALLARDO’s associate had been seen carrying into the facility, approximately two kilograms of cocaine and approximately $35,000 in cash.
U.S. Attorney Fein noted that one kilogram of heroin can produce approximately 50,000 single-dosage unit bags of heroin.
PINZON GALLARDO has been detained since his arrest on September 2, 2011. On October 5, 2012, he pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, one kilogram or more of heroin.
This matter has been investigated by the DEA New Haven Task Force, which includes participants from the New Haven, Meriden, Hamden, West Haven, Branford and Ansonia Police Departments, and the United States Marshals Service. The New Britain Police Department substantially assisted the investigation.
This case is being prosecuted by Assistant United States Attorney S. Dave Vatti.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Mission Man Pleads Guilty to Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that Grover Brave, age 33, of Mission, South Dakota appeared before U.S. Magistrate Judge Mark A. Moreno on April 2, 2013 and pled guilty to Assaulting a Federal Officer. The maximum penalty upon conviction is 1 year in custody, a $100,000 fine, or both; 1 year of supervised release; and a $25 special assessment.
The conviction stems from an incident that took place on January 15, 2013, when Brave struggled with officers while being escorted to a holding cell and attempted to head butt the officer.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
A presentence investigation was ordered and a sentencing date was set for June 21, 2013. The defendant was released from custody pending sentencing.
Middlesex County, N.J., Man Sentenced to 60 Months in Prison for Distributing Videos of Child Sexual AbuseRead the Press Release
TRENTON, N.J. – A Middlesex County, N.J., man was sentenced today to 60 months in prison for distributing images and videos of child sexual abuse over the Internet, U.S. Attorney Paul J. Fishman announced.
Jacob Rios, 25, of Old Bridge Township, N.J., previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an Information charging him with one count of distribution of child pornography. Judge Sheridan imposed the sentence today in Trenton federal court.According to documents filed in this case and statements made in court:
Rios admitted distributing child pornography between March 3, 2011, and July 11, 2011, using a peer-to-peer network. Rios created accounts on the network through which he downloaded pictures and videos of child pornography. He placed those pictures and videos into the shared directory of his peer-to-peer accounts and shared them with other users.
In addition to the prison term, Judge Sheridan sentenced Rios to 10 years of supervised release. Rios agreed to forfeit the laptop and hard drives that he used to commit the offense. He must also register as a sex offender.
U.S. Attorney Fishman credited special agents of the FBI’s Cyber Crimes Squad, under the direction of Acting Special Agent in Charge David Velazquez in Newark, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office General Crimes Unit in Newark.13-156
Defense counsel: Darren M. Gelber Esq., Woodbridge, N.J.Miami-Based Health Care Clinic and Its Owners and Operators Sentenced for $50 Million Fraud SchemeRead the Press Release
The owners and operators of Biscayne Milieu, a Miami-based mental-health clinic, and the clinic itself were sentenced today for their participation in a Medicare fraud scheme involving the submission of more than $50 million in fraudulent billings to Medicare, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Special Agent in Charge of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office.
Antonio Macli, 73, Jorge Macli, 41 and Sandra Huarte, 49, all of Miami, and Biscayne Milieu were sentenced by U.S. District Judge Robert N. Scola Jr. in the Southern District of Florida. Antonio Macli was sentenced to serve 360 months in prison; Jorge Macli was sentenced to serve 300 months in prison; and Huarte was sentenced to serve 262 months in prison. In addition, Biscayne Milieu, the corporate entity these defendants controlled, was sentenced to one year of probation. In addition to their prison terms, Antonio Macli, Jorge Macli and Huarte were each sentenced to serve three years of supervised release. Restitution payments for each of the defendants will be determined on April 25, 2013.
The defendants were each convicted on Aug. 24, 2012, of conspiracy to commit health care fraud, at least one substantive count of health care fraud, and conspiracy to offer and pay kickbacks following a two-month jury trial. Antonio and Jorge Macli and Huarte were also each convicted of conspiracy to commit money laundering and substantive money laundering counts at trial.
According to the evidence at trial, Biscayne Milieu was a closely held, family-run fraudulent clinic that was owned by Antonio Macli and his son Jorge Macli. Antonio Macli’s daughter Sandra Huarte was an executive at the clinic. Together the defendants created and oversaw a scheme in which they, along with their co-defendants, submitted over $50 million in false and fraudulent claims to Medicare through Biscayne Milieu, which purportedly operated a partial hospitalization program (PHP) – a form of intensive treatment for severe mental illness. Instead, the defendants devised a scheme in which they paid patient recruiters to refer ineligible Medicare beneficiaries to Biscayne Milieu for services that were never provided or that were not reimbursable under applicable Medicare rules. Many of the patients admitted to Biscayne Milieu that they were not eligible for PHP treatment because they were chronic substance abusers, suffered from dementia and would not benefit from group therapy, or were not mentally ill and were procuring false diagnoses of mental illness in order to obtain exemptions from the civics portion of the U.S. citizenship application.
The evidence at trial further showed that Antonio and Jorge Macli and Huarte collectively paid patient recruiters more than $1 million in illegal kickbacks to recruit Medicare patients who were ineligible for PHP treatment. Biscayne Milieu then billed Medicare for tens of millions of dollars in PHP treatments for these patients. Antonio and Jorge Macli and Huarte also hired doctors, therapists and other health care professionals to further their massive illegal scheme. Along with co-conspirators working at their direction, they created falsified medical records intended to conceal their Medicare fraud and phony “case manger” contracts in an attempt to hide their extensive illegal kickbacks.
Antonio Macli was the initiator of the fraud scheme, enlisted his son and daughter to participate in it and had primary control over the clinic’s bank accounts that received money stolen from Medicare that was then used to pay illegal kickbacks.
Jorge Macli was most responsible for the clinic’s day-to-day operations and took steps, on a daily basis, to conceal and further the fraud, including deflecting complaints from patients and staff and paying bribes to patients in exchange for their silence.
Huarte oversaw both the kickback payments and the Medicare billings for the clinic. Huarte ensured that Biscayne Milieu’s fraudulent claims could pass scrutiny by Medicare by creating fraudulent paperwork and medical files, and soliciting other employees to do the same, so that these false claims were paid.
Evidence further revealed that Antonio and Jorge Macli and Sandra Huarte engaged in a sophisticated scheme to use a series of ostensibly legitimate corporations to conceal and launder Biscayne Milieu’s fraudulent profits.
Various owners, doctors, managers, therapists, patient brokers and other employees of Biscayne Milieu have also been charged with various health care fraud, kickback, money laundering and other offenses in two indictments unsealed in September 2011 and May 2012. Biscayne Milieu, its owners, and more than 25 of the individual defendants charged in these cases have pleaded guilty or have been convicted at trial.
The case is being prosecuted by Assistant U.S. Attorneys for the Southern District of Florida Michael Davis, Marlene Rodriguez and James V. Hayes. Hayes was formerly a Trial Attorney in the Criminal Division’s Fraud Section. The case was investigated by the FBI with the assistance of HHS-OIG, and was brought by the U.S. Attorney’s Office for the Southern District of Florida in coordination with the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Miami-Based Health Care Clinic and Its Owners and Operators Sentenced for $50 Million Fraud SchemeRead the Press Release
The owners and operators of Biscayne Milieu, a Miami-based mental-health clinic, and the clinic itself were sentenced today for their participation in a Medicare fraud scheme involving the submission of more than $50 million in fraudulent billings to Medicare, announced U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Michael B. Steinbach, Special Agent in Charge of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office.
Antonio Macli, 73, Jorge Macli, 41 and Sandra Huarte, 49, all of Miami, and Biscayne Milieu were sentenced by U.S. District Judge Robert N. Scola Jr. in the Southern District of Florida. Antonio Macli was sentenced to serve 360 months in prison; Jorge Macli was sentenced to serve 300 months in prison; and Huarte was sentenced to serve 262 months in prison. In addition, Biscayne Milieu, the corporate entity these defendants controlled, was sentenced to one year of probation. In addition to their prison terms, Antonio Macli, Jorge Macli and Huarte were each sentenced to serve three years of supervised release. Restitution payments for each of the defendants will be determined on April 25, 2013.
The defendants were each convicted on Aug. 24, 2012, of conspiracy to commit health care fraud, at least one substantive count of health care fraud, and conspiracy to offer and pay kickbacks following a two-month jury trial. Antonio and Jorge Macli and Huarte were also each convicted of conspiracy to commit money laundering and substantive money laundering counts at trial.
According to the evidence at trial, Biscayne Milieu was a closely held, family-run fraudulent clinic that was owned by Antonio Macli and his son Jorge Macli. Antonio Macli’s daughter Sandra Huarte was an executive at the clinic. Together the defendants created and oversaw a scheme in which they, along with their co-defendants, submitted over $50 million in false and fraudulent claims to Medicare through Biscayne Milieu, which purportedly operated a partial hospitalization program (PHP) – a form of intensive treatment for severe mental illness. Instead, the defendants devised a scheme in which they paid patient recruiters to refer ineligible Medicare beneficiaries to Biscayne Milieu for services that were never provided or that were not reimbursable under applicable Medicare rules. Many of the patients admitted to Biscayne Milieu that they were not eligible for PHP treatment because they were chronic substance abusers, suffered from dementia and would not benefit from group therapy, or were not mentally ill and were procuring false diagnoses of mental illness in order to obtain exemptions from the civics portion of the U.S. citizenship application.
The evidence at trial further showed that Antonio and Jorge Macli and Huarte collectively paid patient recruiters more than $1 million in illegal kickbacks to recruit Medicare patients who were ineligible for PHP treatment. Biscayne Milieu then billed Medicare for tens of millions of dollars in PHP treatments for these patients. Antonio and Jorge Macli and Huarte also hired doctors, therapists and other health care professionals to further their massive illegal scheme. Along with co-conspirators working at their direction, they created falsified medical records intended to conceal their Medicare fraud and phony “case manger” contracts in an attempt to hide their extensive illegal kickbacks.
Antonio Macli was the initiator of the fraud scheme, enlisted his son and daughter to participate in it and had primary control over the clinic’s bank accounts that received money stolen from Medicare that was then used to pay illegal kickbacks.
Jorge Macli was most responsible for the clinic’s day-to-day operations and took steps, on a daily basis, to conceal and further the fraud, including deflecting complaints from patients and staff and paying bribes to patients in exchange for their silence.
Huarte oversaw both the kickback payments and the Medicare billings for the clinic. Huarte ensured that Biscayne Milieu’s fraudulent claims could pass scrutiny by Medicare by creating fraudulent paperwork and medical files, and soliciting other employees to do the same, so that these false claims were paid.
Evidence further revealed that Antonio and Jorge Macli and Sandra Huarte engaged in a sophisticated scheme to use a series of ostensibly legitimate corporations to conceal and launder Biscayne Milieu’s fraudulent profits.
Various owners, doctors, managers, therapists, patient brokers and other employees of Biscayne Milieu have also been charged with various health care fraud, kickback, money laundering and other offenses in two indictments unsealed in September 2011 and May 2012. Biscayne Milieu, its owners, and more than 25 of the individual defendants charged in these cases have pleaded guilty or have been convicted at trial.
The case is being prosecuted by Assistant U.S. Attorneys for the Southern District of Florida Michael Davis, Marlene Rodriguez and James V. Hayes. Hayes was formerly a Trial Attorney in the Criminal Division’s Fraud Section. The case was investigated by the FBI with the assistance of HHS-OIG, and was brought by the U.S. Attorney’s Office for the Southern District of Florida in coordination with the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
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.
Manhattan U.S. Attorney Announces Arrests of Drug Kingpin Jose Americo Bubo Na Tchuto, the Former Head of the Guinea-Bissau Navy, and Six Others for Narcotics Trafficking OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Michele M. Leonhart, the Administrator of the United States Drug Enforcement Administration (“DEA”) announced that five defendants – JOSE AMERICO BUBO NA TCHUTO, the former head of the Guinea-Bissau navy; MANUEL MAMADI MANE; SALIU SISSE; PAPIS DJEME; and TCHAMY YALA – arrived in the Southern District of New York on April 4, 2013. In a related action, RAFAEL ANTONIO GARAVITO-GARCIA and GUSTAVO PEREZ-GARCIA, both Colombian nationals, were arrested in Colombia today pursuant to Interpol Red Notices. MANE, SISSE, GARAVITO-GARCIA, and PEREZ-GARCIA are charged with conspiring to engage in narco-terrorism; conspiring to import narcotics into the United States; and conspiring to provide aid to the Fuerzas Armadas Revolucionarios de Colombia (the “FARC”), a South American paramilitary group long designated by the United States as a Foreign Terrorist Organization (“FTO”), by storing FARC-owned cocaine in West Africa. MANE, SISSE, and GARAVITO-GARCIA are also charged with conspiring to sell weapons, including surface-to-air missiles, to be used to protect FARC cocaine processing operations in Colombia against U.S. military forces. NA TCHUTO, DJEME, and YALA face charges of conspiring to import narcotics into the United States. NA TCHUTO has been designated a drug kingpin by the U.S. Treasury Department. The five defendants in New York were presented in U.S. Magistrate Court today.
On April 4, 2013, the Drug Enforcement Administration’s (DEA) Special Operations Division (SOD), Bilateral Investigative Unit (BIU) Narco-Terrorism Group (NTG), working in conjunction with the DEA Lisbon Country Office and the DEA Bogota Country Office concluded a long-standing undercover operation conducted in Guinea-Bissau and elsewhere. The operation consisted of two separate undercover investigations. During the first part of the operation, NA TCHUTO, DJEME, and YALA were arrested on April 2 by the DEA Foreign-deployed Advisory Support Team (FAST) and the NTG off the coast of West Africa while onboard a vessel under DEA control in international waters. During the second part of the operation, MANE and SISSE were apprehended on April 4 in a West African Country and transferred thereafter to the custody of the United States. NA TCHUTO, DJEME, YALA, MANE, and SISSE were transported to New York for prosecution. GARAVITO-GARCIA and PEREZ-GARCIA remain in Colombia pending extradition to the United States.
Manhattan U.S. Attorney Preet Bharara said: “The narco-terrorism conspiracy alleged in these indictments shows the danger that can grow unchecked in far away places where unfortunate circumstances can allow narcotics traffickers and terrorism supporters to transact unseen at great risk to the United States and its interests. The link between narcotics traffickers and terrorists, their financers and supporters, needs to be broken wherever it is found. But thanks to the extraordinary efforts of our DEA partners, who have for years attacked the narco-terrorism threat, this conspiracy was thwarted and we can claim yet another victory in our unrelenting campaign against those who would harm Americans and American interests abroad.”
DEA Administrator Michele Leonhart said: “These DEA arrests are significant victories against terrorism and international drug trafficking. Alleged narco-terrorists such as these, who traffic drugs in West Africa and elsewhere, are some of the world’s most violent and brutal criminals. They have no respect for borders, and no regard for either the rule of law or who they harm as a result of their criminal endeavors. These cases further illustrate frightening links between global drug trafficking and the financing of terror networks. Thanks to the skilled work and bravery of our agents and law enforcement partners, these criminals will face accountability in a U.S. court for their heinous deeds.”
According to the Indictments against MANE, SISSE, GARAVITO-GARCIA, and PEREZ-GARCIA unsealed today:
Beginning in the summer of 2012, the defendants communicated with confidential sources (the “CSs”) working with the DEA who purported to be representatives and/or associates of the FARC. The communications occurred by telephone, over e-mail, and in a series of audio-recorded and videotaped meetings over several months in Guinea-Bissau.
During meetings in Guinea-Bissau beginning in June 2012, and continuing through at least mid-November 2012, MANE, SISSE, GARAVITO-GARCIA, and PEREZ-GARCIA agreed to receive and store multi-ton shipments of FARC-owned cocaine in Guinea-Bissau. The defendants agreed to receive the cocaine off the coast of Guinea-Bissau, and to store the cocaine in storage houses there pending its eventual shipment to the United States, where it would be sold for the financial benefit of the FARC. The defendants further agreed that a portion of the cocaine would be used to pay Guinea-Bissau government officials for providing safe passage for the cocaine through Guinea-Bissau.
Also during those meetings, MANE, SISSE, and GARAVITO-GARCIA agreed to arrange to purchase weapons for the FARC, including surface-to-air missiles, by importing them into Guinea-Bissau for the nominal use of the Guinea-Bissau military.
For example, on June 30, 2012, during a recorded meeting in Guinea Bissau with the CSs, MANE, SISSE, and GARAVITO-GARCIA agreed to assist in the distribution of FARC cocaine by facilitating the shipment of cocaine to Guinea Bissau inside loads of military uniforms, and by establishing a front company in Guinea Bissau to export the cocaine from Guinea Bissau to the United States. In addition, MANE agreed to assist in obtaining weapons for the FARC. On or about July 3, 2012, during another recorded meeting in Guinea Bissau, MANE, SISSE, and GARAVITO-GARCIA met with the Confidential Sources and a Guinea Bissau military representative and discussed the benefits of using Guinea Bissau as a transshipment point for cocaine obtained in South America and destined for the United States, the process for offloading the cocaine once it arrived in Guinea Bissau, and the nature of the weapons to be supplied to the FARC to combat American forces in Colombia, including surface-to-air missiles and AK-47 assault rifles with grenade launchers.
On August 31, 2012, during a recorded meeting in Bogota, Colombia, GARAVITO-GARCIA and PEREZ-GARCIA agreed to facilitate the receipt of approximately 4,000 kilograms of cocaine from the FARC in Guinea Bissau, approximately 500 kilograms of which would later be sent to customers in the United States and Canada. During a recorded meeting in Guinea Bissau with MANE and SISSE that took place on November 13, 2012, a Guinea Bissau military official advised one of the CSs that the weapons transaction could be executed once the FARC brought money to Guinea Bissau and that the anti-aircraft missiles to be sold to the FARC could be used against United States helicopters operating in Colombia.
According to the Indictment against NA TCHUTO, DJEME, and YALA also unsealed today:
Beginning in the summer of 2012, the three defendants engaged in a series of recorded meetings in Guinea-Bissau with confidential sources (the “CSs”) working with the DEA who purported to be representatives and/or associates of South American-based narcotics traffickers.
In an early meeting in which the defendants discussed the shipment of ton-quantities of cocaine from South America to Guinea Bissau by sea, NA TCHUTO noted that the Guinea Bissau government was weak in light of the recent coup d’etat and that it was therefore a good time for the proposed cocaine transaction. In further meetings, NA TCHUTO, DJEME, and YALA agreed to assist the CSs by receiving a two-ton load of cocaine that would be transported to Guinea-Bissau by boat and stored in a warehouse for distribution to Europe and the United States. For example, on November 17, 2012, NA TCHUTO, DJEME, and YALA met with two of the CSs in Guinea- Bissau and discussed importing 1,000 kilograms of cocaine into the United States. Also during the meeting, NA TCHUTO offered to utilize a company that NA TCHUTO owned to facilitate the shipment of cocaine out of Guinea-Bissau. In a previous meeting, NA TCHUTO stated that his fee would be $1,000,000 per 1,000 kilograms of cocaine received in Guinea Bissau.
MANE, SISSE, GARAVITO-GARCIA, and PEREZ-GARCIA have each been charged with one count of conspiracy to engage in narco-terrorism (Count One), one count of conspiracy to distribute five kilograms or more of cocaine, knowing or intending that the cocaine would be imported into the United States (Count Two), and one count of conspiracy to provide material support and resources to an FTO (Count Three). MANE, SISSE and GARAVITO-GARCIA are also charged with one count of conspiracy to acquire and transfer anti-aircraft missiles (Count Four). Counts One, Two, and Four each carry a maximum potential penalty of life in prison, and Count Three carries a maximum potential penalty of 15 years in prison. MANE and SISSE are next scheduled to appear before U.S. District Judge Jed Rakoff on April 9, 2013 at 11:30 a.m.
NA TCHUTO, DJEME, and YALA have each been charged with one count of conspiring to distribute five kilograms or more of cocaine, knowing or intending that the cocaine would be imported into the United States. The charge carries a maximum potential sentence of life in prison. NA TCHUTO, DJEME, and YALA are next scheduled to appear before U.S. District Judge Richard Berman on April 15, 2013 at 11:00 a.m.
The arrests and transfers of the defendants were the result of the close cooperative efforts of the United States Attorney’s Office for the Southern District of New York, DEA’s SOD and FAST, the DEA Lisbon Country Office, the DEA Bogota Country Office, the U.S. Department of Justice Office of International Affairs, and the U.S. State Department.
This prosecution is being handled by the Office's Terrorism and International Narcotics Unit. Assistant United States Attorneys Aimee Hector and Glen Kopp are in charge of the prosecution.
The charges contained in the Indictments are merely accusations and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Na Tchuto et al Indictment
U.S. v. Mane and Sisse Indictment
U.S. v. Garavito-Garcia and Perez-Garcia IndictmentManhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Charges Against Gambino Crime Family Associate for His Alleged Participation in 1990 Murder of Suspected InformantRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging DANIEL FAMA, an alleged Associate of the Gambino Organized Crime Family of La Cosa Nostra (the “Gambino Organized Crime Family”), with the 1990 murder of a suspected informant, Eddie Garofalo. FAMA was taken into custody yesterday, and was presented and arraigned in Manhattan federal court this afternoon before United States Magistrate Judge Kevin Nathaniel Fox. U.S. District Judge Andrew L. Carter, Jr. has been assigned to this case.
Manhattan U.S. Attorney Preet Bharara said: “More than two decades since Daniel Fama allegedly killed a suspected government informant, he has finally been arrested. Any attack against someone working with, or suspected of working with, law enforcement will be strongly answered, and no matter how long it takes we will bring alleged criminals to justice.”
FBI Assistant Director-in-Charge George Venizelos said: “The charges announced today allege once again that mob families are willing to commit murder to enforce the oath of Omerta. A person suspected of cooperation was gunned down at his doorstep to silence him. The charges also demonstrate the resolve of agents and prosecutors to fulfill their oath to enforce the law and see justice done.”
According to the allegations in the Indictment unsealed today in Manhattan federal court and other court documents:
The Gambino Organized Crime Family is a criminal organization whose members and associates engaged in numerous acts of violence, including murder. The head of the family is known as the “Boss,” and he is typically assisted by an “Underboss.” At all times relevant to the charges in the Indictment, John Gotti, Sr., was the Boss and Salvatore Gravano, a/k/a “Sammy the Bull,” was the Underboss of the Gambino Organized Crime Family.
The Gambino Organized Crime Family operates through groups of individuals known as “crews” and “regimes.” Each crew consists of “made” members, sometimes known as “Soldiers,” “wiseguys,” “friends of ours,” and “good fellows.” Soldiers are aided in their criminal endeavors by other trusted individuals, known as “Associates,” who sometimes are referred to as “connected” or identified as “with” a Soldier. Associates participate in the various activities of the crew and its members.
In 1990, Gravano ordered Associate FAMA and others to murder Eddie Garofalo for, among other things, purportedly cooperating with a law enforcement investigation into the Gambino Organized Crime Family. On August 8, 1990, FAMA and others shot and killed the Garofalo in front of his Brooklyn, New York, home.
FAMA, 48, of Staten Island, New York, is charged with killing a person with the intent to prevent that person from communicating to a law enforcement officer information related to the commission of a federal offense. The charge carries a mandatory term of life in prison.
Mr. Bharara praised the investigative work of the FBI.
The prosecution is being handled by the Office’s Organized Crime Unit. Assistant United States Attorneys Harris Fischman and Jason Masimore are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Daniel Fama, et al. Indictment
Man with Domestic Violence Conviction Sentenced to 18 Months in Federal Prison for Unlawfully Possessing FirearmsRead the Press Release
LAS VEGAS - - A man who was convicted in December 2012 of unlawfully possessing firearms because he had been previously convicted of a domestic violence offense, was sentenced today to 18 months in prison and three years of supervised release, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Isaiah Aljavar-Martell Perkins, 21, of North Las Vegas, was sentenced by Senior U.S. District Judge Lloyd D. George. Perkins was convicted by a jury on Dec. 13, 2012, of two counts of prohibited person in possession of a firearm.
“Under federal law, you are prohibited from possessing a firearm if you are a felon or a fugitive, if you use or are addicted to controlled substances, if you have been adjudicated as a mental defective, if you are unlawfully in the United States, if you have been dishonorably discharged from the military, if you are subject to a domestic violence restraining order, or if you have been convicted of a misdemeanor domestic violence offense,” said U.S. Attorney Bogden. “These are all felony crimes, and we are committed to prosecuting persons who violate these laws.”
According to the court records and evidence introduced at trial, on Jan. 29, 2012, Perkins was pulled over by a Las Vegas Metropolitan Police Department (Metro) officer for a traffic violation and a .40 caliber handgun was found under the driver’s seat where Perkins had been sitting. On July 11, 2012, Perkins was found to be in possession of another .40 caliber handgun that was discovered in the glove box of a vehicle he was driving. Perkins had been convicted of misdemeanor domestic battery in the North Las Vegas Municipal Court on March 3, 2011, and was prohibited under federal law from possessing the firearms.
The case was brought under DOJ’s Project Safe Neighborhoods (PSN) initiative, a nationwide commitment to reduce gun and gang crime in America.
The case was investigated by the Las Vegas Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and prosecuted by Assistant U.S. Attorneys Phillip N. Smith, Jr. and Cristina Silva.Lazaro Carbajal-aviles Indicted for Illegal ReentryRead the Press Release
LAZARO CARBAJAL-AVILES, age 41, a citizen of Mexico, was charged in a one-count indictment by a Federal Grand Jury today illegal reentry by an alien previously removed, announced U.S. Attorney Dana J. Boente.
According to the indictment, on or about February 27, 2013, CARBAJAL, an alien who had previously been removed from the United States, was found in the United States, within the Eastern District of Louisiana, without having obtained consent from the Secretary of the Department of Homeland Security to reapply for admission to the United States.
If convicted, CARBAJAL, who was convicted of a felony prior to his previous removal, faces a maximum term of imprisonment of 10 years, a fine of $250,000 and 3 years of supervised release following any term of imprisonment.
U. S. Attorney Boente reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by United States Immigration and Customs Enforcement, Homeland Security Investigations with the assistance of the Louisiana State Police and the Louisiana Department of Wildlife and Fisheries. The prosecution is being handled by Special Assistant United States Attorney Robert Weir.(Download Indictment )
Landover Felon Exiled to 10 Years in Prison for Illegal Possession of A GunRead the Press Release
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Derek Lamarr Gaines, age 25, of Landover, Maryland, today to 10 years in prison followed by three years of supervised release for being a felon in possession of a firearm.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Buddy Robshaw of the Cheverly Police Department; and Colonel Marcus L. Brown, Superintendent of the Maryland State Police.
According to Gaines’ plea agreement, on August 12, 2011, Gaines was seated in the back seat passenger side of a vehicle being driven by Jonathan Jerome Winston, with a third person in the front passenger seat. A law enforcement officer pulled the vehicle over for a traffic stop and detected the odor of phencyclidine (PCP) coming from the rear passenger compartment. The officer ordered Gaines out of the vehicle. As Gaines stepped out of the car he ran away, throwing a handgun that was in his waistband. Officers arrested Gaines and recovered a 9mm semi-automatic handgun with one bullet in the chamber and an extended magazine containing 29 rounds of ammunition; a vial of PCP; and a black ski mask.
When Gaines ran away, the front seat passenger also tried to flee and Winston attempted to drive away. Both were caught by police and placed under arrest. A black ski mask was recovered from Winston’s pocket. A search of the vehicle recovered two additional guns - a 9mm semi-automatic handgun and a .45 caliber machine gun with a 12.5 inch magazine loaded with 38 rounds of .45 caliber ammunition; and a third black ski mask.
Additional investigation revealed that the two 9mm firearms were previously reported stolen.
Jonathan Jerome Winston, age 23, of Washington, D.C., pleaded guilty and was sentenced to 71 months in prison.
United States Attorney Rod J. Rosenstein commended the ATF, Cheverly Police Department, and the Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney William D. Moomau, who prosecuted the case.
Jackson Woman Pleads Guilty to Stolen Identity Refund FraudRead the Press Release
Jackson, Miss – Ladonna Cooper, 30, of Jackson, pled guilty in federal court today to conspiring to defraud the United States, announced U.S. Attorney Gregory K. Davis, Resident Agent in Charge Allen Bryant of the U.S. Secret Service, and Acting Special Agent in Charge Damon Rowe of Internal Revenue Service Criminal Investigation.
Cooper, a former employee of the Mississippi Department of Corrections, admitted to conspiring to defraud the government by stealing personal identifying information, including names and social security numbers, from the Central Mississippi Correctional Facility located in Rankin County. The information was then used by others to file false tax returns with the Internal Revenue Service. The tax returns claimed that the tax payers were owed a refund. Those refunds were then electronically deposited into various bank accounts in Mississippi belonging to Cooper’s co-conspirators.
Cooper will be sentenced on July 18, 2013 and faces a maximum penalty of ten years in prison and a $250,000 fine.
This case was investigated by the U.S. Secret Service and Internal Revenue Service Criminal Investigation with assistance from the Mississippi Attorney General’s Office, the Mississippi Department of Corrections and the Mississippi Department of Revenue.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
International Credit Card Trafficker Sentenced to 88 Months in PrisonRead the Press Release
Vladislav Anatolievich Horohorin, aka “BadB,” was sentenced today to serve 88 months in prison for trafficking in millions of stolen credit and debit cards and for his role in the theft of more than $9 million dollars from an Atlanta-based credit card processor.
The sentence was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division, U.S. Attorney for the District of Columbia Ronald C. Machen Jr., U.S. Attorney for the Northern District of Georgia Sally Quillian Yates, U.S. Secret Service Assistant Director for Investigations David J. O’Connor and Special Agent in Charge Mark F. Giuliano of the FBI’s Atlanta Field Office.
Horohorin, 30, a citizen of Russia, Israel and Ukraine, was sentenced by U.S. District Judge Ellen S. Huvelle in the District of Columbia. In addition to his prison term, Horohorin was ordered to pay $125,739 in restitution and sentenced to two years of supervised release.
Horohorin was indicted by a federal grand jury in the District of Columbia in November 2009 on charges of access device fraud and aggravated identity theft. In a separate investigation, a federal grand jury in the Northern District of Georgia returned a superseding indictment against Horohorin in August 2010, charging him with conspiracy to commit wire fraud, wire fraud and access device fraud. In August 2010, French law enforcement authorities, working with the U.S. Secret Service, identified Horohorin in Nice, France, and arrested him as he was attempting to board a flight to return to Moscow. Horohorin was extradited to the United States on June 6, 2012. After Horohorin’s arrival in the United States, the two cases pending against him were consolidated in Washington, D.C.
On Oct. 25, 2012, Horohorin pleaded guilty to two counts of access device fraud as well as conspiracy to commit wire fraud.
According to Horohorin’s plea agreement, he used online criminal forums to sell stolen credit and debit card information, known as “dumps,” to online purchasers around the world. Horohorin, using the online name “BadB,” advertised the availability of stolen credit and debit card information through these online forums and directed purchasers to create accounts at “dumps.name,” a fully-automated dumps vending website operated by Horohorin and hosted outside the United States. At the time of his arrest, Horohorin possessed more than 2.5 million stolen credit and debit card numbers.
Horohorin admitted that he was one of the lead cashers in an elaborate scheme in which counterfeit payroll debit cards were used to withdraw more than $9 million from ATMs around the world. Hackers broke into the computers of a credit card processor located in the Atlanta area, stole debit card account numbers and raised the balances and withdrawal limits on those accounts while distributing the account numbers and PIN codes to cashers, like Horohorin. Horohorin, and those he recruited, used one of the stolen account numbers to withdraw more than $125,000 from ATMs in and around Moscow.The District of Columbia case is being prosecuted by Trial Attorneys Ethan Arenson, Carol Sipperly and Corbin Weiss of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS). Weiss also serves as a Special Assistant U.S. Attorney for the District of Columbia. The District of Columbia case was investigated by the U.S. Secret Service. Key assistance was provided by the French Police Nationale Aux Frontiers and the Netherlands Police Agency National Crime Squad High Tech Crime Unit. The FBI Atlanta field office provided information helpful to the investigation.
The Northern District of Georgia case is being prosecuted by Assistant U.S. Attorneys Nick Oldham and Lawrence R. Sommerfeld of the Northern District of Georgia, and Trial Attorney Sipperly of CCIPS. The Atlanta case was investigated by the FBI. Assistance was provided by numerous law enforcement partners. The U.S. Secret Service provided information helpful to the investigation.
The Criminal Division’s Office of International Affairs handled Horohorin’s extradition from France.
International Credit Card Trafficker Sentenced to 88 Months in PrisonRead the Press Release
WASHINGTON – Vladislav Anatolievich Horohorin, aka “BadB,” was sentenced today to 88 months in prison for trafficking in millions of stolen credit and debit cards and for his role in the theft of more than $9 million from an Atlanta-based credit card processor.
The sentence was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the District of Columbia Ronald C. Machen Jr., U.S. Attorney for the Northern District of Georgia Sally Quillian Yates, U.S. Secret Service Assistant Director for Investigations David J. O’Connor and Special Agent in Charge Mark F. Giuliano of the FBI’s Atlanta Field Office.
Horohorin, 30, a citizen of Russia, Israel and Ukraine, was sentenced by U.S. District Judge Ellen S. Huvelle in the District of Columbia. In addition to his prison term, Horohorin was ordered to pay $125,739 in restitution and sentenced to two years of supervised release.
Horohorin was indicted by a federal grand jury in the District of Columbia in November 2009 on charges of access device fraud and aggravated identity theft. In a separate investigation, a federal grand jury in the Northern District of Georgia returned a superseding indictment against Horohorin in August 2010, charging him with conspiracy to commit wire fraud, wire fraud and access device fraud.
In August 2010, French law enforcement authorities, working with the U.S. Secret Service, identified Horohorin in Nice, France, and arrested him as he was attempting to board a flight to return to Moscow. Horohorin was extradited to the United States on June 6, 2012. After Horohorin’s arrival in the United States, the two cases pending against him were consolidated in Washington, D.C.
On Oct. 25, 2012, Horohorin pleaded guilty to two counts of access device fraud as well as conspiracy to commit wire fraud.
According to Horohorin’s plea agreement, he used online criminal forums to sell stolen credit and debit card information, known as “dumps,” to online purchasers around the world. Horohorin, using the online name “BadB,” advertised the availability of stolen credit and debit card information through these online forums and directed purchasers to create accounts at “dumps.name,” a fully-automated dumps vending website operated by Horohorin and hosted outside the United States. At the time of his arrest, Horohorin possessed more than 2.5 million stolen credit and debit card numbers.
Horohorin admitted that he was one of the lead cashers in an elaborate scheme in which counterfeit payroll debit cards were used to withdraw more than $9 million from ATMs around the world. Hackers broke into the computers of a credit card processor located in the Atlanta area, stole debit card account numbers and raised the balances and withdrawal limits on those accounts while distributing the account numbers and PIN codes to cashers, like Horohorin. Horohorin, and those he recruited, used one of the stolen account numbers to withdraw more than $125,000 from ATMs in and around Moscow.
The District of Columbia case is being prosecuted by Trial Attorneys Ethan Arenson, Carol Sipperly and Corbin Weiss of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS). Weiss also serves as a Special Assistant U.S. Attorney for the District of Columbia. The District of Columbia case was investigated by the U.S. Secret Service. Key assistance was provided by the French Police Nationale Aux Frontiers and the Netherlands Police Agency National Crime Squad High Tech Crime Unit. The FBI Atlanta field office provided information helpful to the investigation.
The Northern District of Georgia case is being prosecuted by Assistant U.S. Attorneys Nick Oldham and Lawrence R. Sommerfeld of the Northern District of Georgia, and Trial Attorney Sipperly of CCIPS. The Atlanta case was investigated by the FBI. Assistance was provided by numerous law enforcement partners. The U.S. Secret Service provided information helpful to the investigation.
The Criminal Division’s Office of International Affairs handled Horohorin’s extradition from France.
13-122Halifax County Drug Trafficker SentencedRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today United States District Judge Louise W. Flanagan sentenced CECIL KURRENTHES RANSOM, 33, to 85 months imprisonment followed by 3 years supervised release.
On October 3, 2012, RANSOM pled guilty to an Indictment charging him with possession of a firearm and ammunition by a convicted felon.
The investigation began when the Halifax County Sheriff’s Office used an informant to make two controlled purchases of marijuana from RANSOM from his house in Roanoke Rapids, N.C., in January and February 2012. On February 10, 2012, the Halifax County Sheriff’s Office executed a search warrant at RANSOM’S house and found a loaded shotgun, a small amount of marijuana, digital scales, .40 caliber ammunition, marijuana seeds and suitcases containing marijuana remnants. It was determined that RANSOM was responsible for the distribution of over 6 kilograms of marijuana. RANSOM was prohibited from possessing firearms and ammunition due to his prior felony convictions for selling cocaine and possession of a firearm by a convicted felon.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Halifax County Sheriff’s Office.
The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney's Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney's Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. The assignment to the United States Attorney's Office has been made possible by grants funded by the Governor's Crime Commission.
Gallatin County Man Charged with Illegally Possessing FirearmsRead the Press Release
Frederick J. Zirkelbach, 48, of Ridgeway, Illinois, was arraigned today in United States District Court in Benton on an indictment charging him with being a felon in possession of a firearm, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment, returned by a Federal Grand Jury on April 2nd, alleged that Zirkelbach was found to be in possession of 14 firearms on March 9, 2013. Prior to that date, Zirkelbach had been convicted of two felony offenses, making it illegal under federal law for him to possess firearms or ammunition.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, Zirkelbach faces up to 10 years’ imprisonment, a $250,000 fine, and 3 years of supervised release to follow his incarceration. The firearms he illegally possessed are also subject to forfeiture to the United States.
Zirkelbach was ordered held without bond and was remanded to the custody of the United States Marshal to await further proceedings.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and the Illinois State Police with the assistance of the Bureau of Alcohol, Tobacco, and Firearms and the Gallatin County State’s Attorney’s Office.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Four Former Executives of Lufthansa Subsidiary Bizjet Charged with Foreign BriberyRead the Press Release
Charges were unsealed today against four former executives of BizJet International Sales and Support Inc., the U.S.-based subsidiary of Lufthansa Technik AG, which provides aircraft maintenance, repair and overhaul (MRO) services, for their alleged participation in a scheme to pay bribes to government officials in Latin America, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office.
According to the charges, Bernd Kowalewski, the former president and chief executive officer of BizJet, Jald Jensen, the former sales manager at BizJet, Peter DuBois, the former vice president of sales and marketing at BizJet, and Neal Uhl, the former vice president of finance at BizJet, paid bribes to officials employed by the Mexican Policia Federal Preventiva, the Mexican Coordinacion General de Transportes Aereos Presidenciales, the air fleet for the Gobierno del Estado de Sinaloa in Mexico, the air fleet for the Estado De Roraima in Brazil, and the Republica de Panama Autoridad Aeronautica Civil in exchange for those officials’ assistance in securing contracts for BizJet to perform MRO services.
Kowalewski and Jensen were charged by indictment filed in U.S. District Court for the Northern District of Oklahoma on Jan. 5, 2012, with conspiring to violate the Foreign Corrupt Practices Act (FCPA) and to launder money, as well as substantive charges of violating the FCPA and money laundering. The two defendants are believed to remain abroad.
DuBois and Uhl pleaded guilty on Jan. 5, 2012, to criminal informations, and their pleas were unsealed today. DuBois pleaded guilty to one count of conspiracy to violate the FCPA and one count of violating the FCPA. Uhl pleaded guilty to one count of conspiracy to violate the FCPA. Both defendants were sentenced today by U.S. District Judge Gregory K. Frizzell in the Northern District of Oklahoma. DuBois’s sentence was reduced from a sentencing guidelines range of 108 to 120 months in prison to probation and eight months home detention based on his cooperation in the government’s investigation. Uhl’s sentence was similarly reduced for cooperation from a guidelines range of 60 months in prison to probation and eight months home detention.
“The charges announced today allege a conspiracy by senior executives at BizJet to win contracts in Latin American countries through bribery and illegal tactics,” said Acting Assistant Attorney General Raman. “Former BizJet executives, including the former president and chief executive officer, allegedly authorized and caused hundreds of thousands of dollars to be paid directly and indirectly to ranking military officials in various foreign countries, and two former executives have pleaded guilty for their roles in the conspiracy. These charges reflect our continued commitment to holding individuals accountable for violations of the FCPA, including, as in this instance, after entering into a deferred prosecution agreement with their employer.”
“Business executives have a responsibility to act appropriately in order to maintain a fair and competitive international market,” said FBI Assistant Director in Charge Parlave. “The unsealing of these bribery charges, and today’s sentencing, demonstrate that the FBI is committed to curbing corruption and will pursue all those who try to advance their businesses through bribery.”
The charges allege that the defendants, in many instances, paid bribes directly to foreign officials in Mexico, Panama and Brazil for assistance in securing contracts. In other instances, the defendants allegedly funneled bribes through a shell company owned and operated by Jensen. The shell company, Avionica International & Associates Inc., allegedly operated under the pretense of providing aircraft maintenance brokerage services but in reality laundered money related to BizJet’s bribery scheme. Avionica was located at Jensen’s personal residence in Van Nuys, Calif., and Jensen was the only officer, director and employee.
The charges announced today follow the announcement on March 14, 2012, of a deferred prosecution agreement with BizJet and an $11.8 million monetary penalty to resolve charges related to the corrupt conduct. That agreement acknowledged BizJet’s voluntary disclosure, extraordinary cooperation and extensive remediation in this case.
The conspiracy to commit violations of the FCPA count carries a maximum penalty of five years in prison and a fine of the greater of $250,000 or twice the value gained or lost. The FCPA counts each carry a maximum penalty of five years in prison and a fine of the greater of $100,000 or twice the value gained or lost. The conspiracy to commit money laundering count carries a maximum penalty of 20 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the transaction. The money laundering counts each carry a maximum penalty of 10 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the transaction.
An indictment is merely an accusation, and defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
The case is being prosecuted by Trial Attorneys Daniel S. Kahn and Stephen J. Spiegelhalter of the Criminal Division’s Fraud Section. Assistant U.S. Attorney Kevin Leitch from the Northern District of Oklahoma has provided assistance in the case. The department has also worked closely with its law enforcement counterparts in Mexico and Panama in this matter and is grateful for their assistance. The case is being investigated by FBI agents who are part of the Washington Field Office’s dedicated FCPA squad.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Payroll Service Provider Sentenced for Tax EvasionRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a former payroll service provider was sentenced for failing to pay to the Internal Revenue Service (“IRS”) employment taxes received from his clients. On April 4, 2013, United States District Court Judge John R. Tunheim sentenced Mohamed Abdi to time served (approximately three months) on one count of tax evasion. He also was ordered to pay approximately $77,000 in restitution. Abdi was indicted on April 9, 2012, and pleaded guilty on January 3, 2013.
From January 1, 2005, through June 2007, Abdi was the sole owner of Siham Solutions, Inc., which provided payroll services to clients in Minnesota. These services included paying federal income and employment taxes that were withheld from the employees of Siham’s clients. In his plea agreement, Abdi acknowledged that from the first quarter of 2005 through the second quarter of 2007, he received between $80,000 and $200,000 in employment taxes from his clients, which he, in turn, was to pay to the IRS. Instead, however, Abdi used the money for his own purposes.
This case was the result of an investigation by the IRS-Criminal Investigations. It was prosecuted by Assistant U.S. Attorney Michael L. Cheever.Per U.S. Department of Justice policy, the U.S. Attorney’s Office is not allowed to provide the age and city of residence for defendants charged in criminal tax cases.
Former Officer of Closed Ellijay Bank SentencedRead the Press Release
GAINESVILLE, Ga. - Former bank vice president Adam Teague was sentenced today to serve over five years in federal prison for conspiring to defraud Appalachian Community Bank.
“Bank fraud is a critical problem throughout the United States, but it has hit Georgia especially hard,” said United States Attorney Sally Quillian Yates. “Our state has led the nation in bank failures since 2008, with 85 banks failing - including this one. This bank was robbed from the inside, not by a bandit carrying a gun, but a bank officer carrying a pen.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s sentencing of Mr. Teague should serve as a stark reminder to others that such greed based criminal behavior as seen in this case comes with a cost. Understanding the potential impact on the banking institution itself, the FBI will continue to dedicate extensive investigative resources toward addressing bank fraud in its many and varied forms.”
Jon T. Rymer, Inspector General for the Federal Deposit Insurance Corporation (FDIC) said, “The Federal Deposit Insurance Corporation (FDIC) Office of Inspector General is pleased to join our law enforcement colleagues in announcing the sentence of this former bank official for his role in a complex bank fraud perpetrated through the failed Appalachian Community Bank. It is especially important to investigate and prosecute cases where trusted insiders abuse their positions to cause harm to the institution and undermine the integrity of the financial services industry as a whole. We are committed to preventing and addressing such threats to the safety and soundness of FDIC-insured banks throughout the country.”
“Teague contributed to the failure of TARP-applicant Appalachian Community Bank by fraudulently masking the bank’s true financial condition while enriching himself,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “Driven by greed and risky behavior, Teague engaged in an ‘extend and pretend’ scheme using the proceeds of new bank loans to hide past-due loans. He also hid the bank’s growing inventory of foreclosed property by directing the bank to finance sales of the properties to buyers including two Teague-controlled shell companies, GPH (“God Please Help”) Investments and PHL (“Please Help Lord”) Investments. SIGTARP and our law enforcement partners will root-out fraud related to TARP, hold fraudsters accountable, and bring justice to American taxpayers.”
Steve Linick, Inspector General Federal Housing Finance Agency said, “Protecting the integrity of the Federal Home Loan Bank system is critical to our nation’s economic recovery and we along with our law enforcement partners will aggressively pursue anyone seeking to take advantage of that system.”
According to United States Attorney Yates, the charges and other information presented in court, Teague was Senior Vice President of Appalachian Community Bank, which was headquartered in Ellijay, Ga. Due to its poor financial condition, Appalachian was forced to close on March 19, 2010, and the FDIC was appointed as receiver. The investigation of Appalachian’s loan transactions uncovered extensive fraudulent activity in which Teague was involved:
Concealment of Past-Due Loans
In an attempt to prevent the FDIC from discovering certain past-due loans on Appalachian’s books, between June 2008 and August 2009, Teague and unindicted coconspirator T.N, arranged a number of sham real estate transactions and caused the bank to make approximately $7 million in fraudulent loans to unindicted coconspirator M.L. Teague and M.L. intended to make it appear as if M.L. had purchased certain properties from Appalachian’s foreclosure inventory and was making regular monthly payments on the new mortgages.
Panama City Beach Condominiums
In April 2009, Teague and unindicted coconspirator T.N., used shell corporations to purchase two condominiums in Panama City Beach, Fla. and caused Appalachian to finance them at a total cost of approximately $566,000. Approximately two months later, the two refinanced their mortgages and pocketed more than $875,000 which they then used to pay other personal debts, make monthly loan payments on the refinanced mortgages, pay condominium fees, and purchase new furniture for their condominiums.
GPH Investments, LLC. and PHL Investments LLC
In August 2009, Teague and unindicted coconspirator T.N. created two shell companies: GPH Investments, LLC. and PHL Investments, LLC. GPH is an acronym for “God Please Help,” and PHL is an acronym for “Please Help Lord.” Teague and T.N. then engaged in a sham real estate transaction designed to make it appear as if GPH had purchased 11 residential properties from Appalachian’s foreclosure inventory for a total of approximately $3.7 million.
Teague and T.N. then caused Appalachian to loan GPH 90 percent of the purchase price and caused GPH to represent at closing that it was paying the other 10 percent of the purchase price out of its own funds, even though the two of them knew that to be untrue. The 10 percent down payment, closing costs, and monthly interest payments on this loan were all paid out of the proceeds from a $500,000 line of credit that Teague and unindicted coconspirator T.N. fraudulently caused Appalachian to extend to PHL.
Soak Creek Preserve Partners Land Flips
Teague and three other individuals owned Soak Creek Preserve Partners, LLC (Soak Creek), a Georgia limited liability company formed for the sole purpose of engaging land flips, that is, buying real estate and immediately reselling it at a higher price. Specifically, Soak Creek was formed to purchase and resell two adjoining tracts of land in Tennessee. One tract consisted of approximately 5,043 acres and the other tract consisted of approximately 2,160 acres. Before Soak Creek purchased either tract, Teague and his partners made arrangements to resell both tracts to an investment group from Texas.
Teague then caused Appalachian to make three separate $100,000 loans to unindicted coconspirator B.H. under false pretenses between March 7, and September 4, 2007. Teague knew that B.H. was a silent partner in Soak Creek. He also knew that in obtaining these loans from the bank, B.H. was acting as a straw borrower for Soak Creek. And Teague also knew that Soak Creek intended to use the proceeds of these loans as down payments on the 5,043 acres and the 2,160 acres. But Teague did not disclose any of these facts to Appalachian Community Bank. In fact, he actively hid his involvement in at least one of these loan transactions by altering the bank’s records to make it appear that someone else had acted as the loan officer. By not disclosing to Appalachian’s loan committee that he had a personal financial interest in these transactions, Teague violated the bank’s conflict-of-interest policy.
To finance Soak Creek’s purchase of the 5,043 acres, on April 20, 2007, Teague caused Appalachian to wire transfer approximately $7.2 million of the bank’s money to the escrow account of the Tennessee law firm that handled the loan closing. He did not record this wire transfer in the bank’s books and records. At the time of this transfer, Soak Creek’s account at Appalachian had a zero balance. Therefore, this wire transfer caused Soak Creek’s account to be overdrawn by approximately $7.2 million. The amount of this overdraft exceeded Teague’s lending authority at the bank.
On April 24, 2007, Soak Creek flipped the 5,043 acres to the Texas investment group for approximately $9.3 million, thereby realizing a same-day profit of approximately $2 million.
To finance Soak Creek’s purchase of the 2,160 acres, on September 28, 2007, Teague caused Appalachian to wire transfer approximately $3 million of the bank’s money to the escrow account of the Tennessee law firm that handled the loan closing. He also did not record this wire transfer in Appalachian’s books and records. At the time of this wire transfer, there was only four dollars in Soak Creek’s account at the bank. The wire transfer caused Soak Creek’s account to be overdrawn by approximately $3 million. The amount of this overdraft exceeded Teague’s lending authority at the bank.
On September 28, 2007, Soak Creek flipped the 2,160 acres to the Texas investment group for approximately $3.7 million, thereby realizing a same-day profit of approximately $500,000.
Teague, 39, of Ellijay, was convicted on these charges on August 22, 2012, after he pleaded guilty. United States District Judge Richard W. Story sentenced him to five years, ten months in prison to be followed by five years of supervised release. Teague was also ordered to forfeit $5,840,517.98, which is equal to the amount of the illegal proceeds he obtained as a result of the conspiracy, as well as all of the real property that he purchased with the proceeds of the conspiracy.
This case was investigated by Special Agents of the Federal Bureau of Investigation, the Federal Deposit Insurance Corporation, Office of Inspector General, the Department of Treasury, Special Inspector General - Troubled Asset Relief Program, and the Federal Housing Finance Agency, Office of Inspector General.
Assistant United States Attorneys Russell Phillips and Mike Brown prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Former New Orleans Resident, Kaleb Deakle, Charged with Defrauding Car DealershipRead the Press Release
KALEB DEAKLE, age 24, a resident of Atlanta, Georgia, was charged in a bill of information today with wire fraud, announced U. S. Attorney Dana Boente.
According to court documents, DEAKLE, who previously resided in New Orleans, gained access to the bank account of the management company where he had leased a condominium. DEAKLE used his computer to negotiate the online sale of a 2012 Land Rover Sport. After a series of emails with the salesman, DEAKLE arrived at Land Rover of New Orleans on January 12, 2012, with a check purportedly from the management company. The check was counterfeit and written out for the total purchase price of $72,148.50. DEAKLE led the dealership to believe that he was employed by Apple, Inc., that the check was legitimate, and took possession of the vehicle.
If convicted, DEAKLE faces a maximum term of imprisonment of 20 years, a fine of
$250,000 and 3 years of supervised release following any term of imprisonment.U. S. Attorney Boente reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Special Agents of the Federal Bureau of Investigation and the prosecution is being handled by Assistant United States Attorney Jon Maestri.
(Download Bill of Information )
Former Jewelry Store Owner and Loan Officer Charged in $20 Million Mortgage Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – A federal grand jury has charged Robert Mikail, 40, and Ging-Hwang “Felicia” Tsoa, 58, both of Ashburn, Va., with conspiracy and bank fraud charges related to their alleged roles in a $20 million mortgage fraud scheme involving more than 35 homes.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement.
If convicted, Mikail and Tsoa each face a maximum penalty of 30 years in prison on each count of the indictment.
According to the seven-count indictment returned on April 4, 2013, Mikail owned a retail jewelry store in Ashburn, Va. known as Opus Jewelry, and Tsoa worked as a loan officer at First Empire Mortgage, in Fairfax, Virginia, and Lifetime Financial Services, in Herndon, Va.
From 2005 to 2007, Mikail allegedly recruited individuals, known as “straw buyers,” to serve as nominal purchasers in real estate transactions as part of a scheme to profit from fraudulently obtained mortgage loans and the purchase of residential real estate in northern Virginia. In order to get the straw buyers’ loan applications approved and the transactions closed, Mikail, working with Tsoa and other loan officers, allegedly falsified the straw buyers’ loan applications. In particular, all of the fraudulent loan applications falsely designated Mikail’s Opus Jewelry as the borrowers’ employer, which Mikail would then falsely verify to the lenders as part of the loan approval process.
In total, Mikail allegedly engineered the purchase of approximately 36 homes in Ashburn, Va., and obtained from lenders approximately $19,866,150 in loan proceeds on the basis of fraudulent loan applications. While Mikail and Tsoa profited when these homes were purchased, all of the loans ultimately defaulted, resulting in significant losses to the lenders.
Alleged co-conspirator Bing-Sing “Cindy” Wang, the owner of Lifetime Financial Services, pleaded guilty to related charges on Nov. 20, 2012, and was sentenced to 24 months in prison on Feb. 26, 2013.
The case is being investigated by the FBI’s Washington Field Office. Assistant United States Attorney Paul J. Nathanson is prosecuting the case on behalf of the United States.
Criminal indictments 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.Former Employee Pleads Guilty to Embezzling Funds from Labor UnionRead the Press Release
Baltimore, Maryland – Cora Carper, age 32, of Churchton, Maryland, pleaded guilty today to embezzlement from a labor union, in connection with a scheme to steal at least $200,000 from the union’s political action committee.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and District Director Mark Wheeler of the U.S. Department of Labor, Office of Labor – Management Standards.
According to her plea, Carper was a secretary with the International Association of Heat and Frost Insulators and Allied Workers, assigned to perform clerical tasks associated with the operation of the Insulators Political Action Committee (PAC) fund. Carper’s duties included processing disbursement requests. Disbursement requests had to be made in writing and only the Insulators General President, General Secretary-Treasurer, Political Director and officers of the Insulators local unions had authority to request disbursements from the PAC fund. Once Carper received a written request for disbursement from an appropriate official, she was supposed to print a check from the PAC fund account that contained the electronic signatures of the Insulators General President and General Secretary-Treasurer and forward that check to the recipient. Carper also entered PAC fund receipts and deposits into a computerized ledger, made deposits in the PAC fund, and received and reconciled monthly PAC fund bank statements against the electronic ledger.
Carper admits that between June 2009 and February 2011, she printed more than 300 checks totaling approximately $502,586, from the PAC fund account made payable to “cash,” “cash reimbursement,” or “petty cash.” Union officials stated that Carper printed and cashed the checks, without authorization, often cashing multiple PAC fund checks the same day. Carper endorsed the back of all but 13 of the more than 300 checks she cashed. During the time of the embezzlement Carper deposited at least $180,000 into her personal bank accounts. To cover up her embezzlement, Carper made false entries in the computerized ledger indicating that the checks were written for donations to political candidates, expense reimbursements or expenses for conferences. In fact, the checks were made payable to cash, cashed by Carper and then used for her personal benefit.
In early 2011 Carper was confronted about her embezzlement by the Insulators General President. Carper admitted that she had taken $7,300, but denied further embezzlement. Her family paid the Insulators $7,300. A subsequent internal investigation by the Insulators and by the Department of Labor, Office of Labor - Management Standards revealed that Carper’s embezzlement far exceeded her limited admission, with $502,586 in checks attributed to Carper’s embezzlement.
Carper faces a maximum sentence of five years in prison and a fine of $250,000. As part of her plea agreement, Carper will be required to pay restitution in the full amount of the victim’s losses, which will be determined at sentencing. U.S. District Judge George L. Russell III has scheduled Carper’s sentencing for June 4, 2013, at 9:30 a.m.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked U.S. Department of Labor, Office of Labor - Management Standards for its work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Kristi N. O’Malley, who is prosecuting the case.
Former Chambersburg Area School Teacher Indicted for Receipt and Possession of Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jeffrey Schmutzler, of Fayettesville, Pennsylvania, was indicted Wednesday by a federal grand jury in Harrisburg for receipt and possession of child pornography.
According to United States Attorney Peter J. Smith, Schmutzler, a former teacher at Chambersburg Area School District, was arrested on March 21, following charges filed in a Criminal Complaint. He remains in custody.
At this point in the investigation, the U.S. Attorney’s Office has no evidence that any female students were involved or that there was any unlawful physical contact with any students.
Anyone with information related to this matter should please contact United States Postal Inspector Michael Corricelli at 717-257-5581.
If you feel you are a victim and need assistance please contact the Victim/Witness Coordinator for the Middle District of Pennsylvania Laurie A. Riley at 717-221-4482 or 1-866-673-7340.
The case is being investigated by the U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s(ICE) Homeland Security Investigations(HSI) and the Pennsylvania State Police. The prosecutor assigned to the case is Assistant United States Attorney Daryl F. Bloom.
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 mandatory minimum penalty is five years’ imprisonment. The maximum penalty under the federal statute is 30 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.
Former Bank Teller Pleads Guilty to EmbezzlementRead the Press Release
Jackson, Miss. - Heather Brewer, 30, of Ridgeland, Mississippi, pled guilty in federal court today to embezzlement from a federally-insured bank, U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen announced. She will be sentenced by U.S. District Judge Daniel P. Jordan III on June 27, 2013 at 9:30 a.m., and faces a maximum penalty of 30 years in prison and a $1 million fine.
Brewer admitted that, from December 2010 through June 2012, while working as a bank teller for BankPlus in Ridgeland, she embezzled approximately $59,470.00 from her teller drawer, another teller drawer, and from the ATM which she was responsible for balancing and replenishing with cash.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Mike Hurst.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Federal Tax Prosecutions Serve as Reminder to Taxpayers to Comply with Tax Obligations as April 15 Deadline ApproachesRead the Press Release
CHICAGO – Three tax return preparers, a salesman, and the owner of a psychic reading business are among seven Chicago and suburban defendants who are facing federal prosecution in separate cases for alleged federal income tax crimes. These cases, along with others recently charged, are typical of federal tax prosecutions that occur throughout the year, but they also serve as a reminder to taxpayers of the importance of voluntary compliance with their tax obligations as the April 15 filing deadline approaches, federal law enforcement officials announced today.
“The IRS Criminal Investigation Division is committed to ensuring that all taxpayers pay their fair share,” said James C. Lee, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. “We are aggressively serving the American people by investigating criminal violations of the Internal Revenue Code. Tax fraud does not know a season – IRS special agents pursue criminals year round, not only at tax time. Taxpayers who might be thinking about cheating with this month's filing deadline looming should think twice or they will risk the consequences.”
Gary S. Shapiro, United States Attorney for the Northern District of Illinois, noted that in addition to criminal penalties, including incarceration, fines, and the costs of prosecution, convicted defendants remain responsible for any taxes and interest due, as well as civil penalties of up to 75 percent of the tax owed. Those making false claims against the government may be required to pay restitution or may be sued civilly for an amount greater than the fraudulent claims.
In one case, an arrest warrant was issued for COREY B. NORWOOD, 35, of Chicago, who was indicted on Wednesday by a federal grand jury on four counts of making false claims for federal tax refunds totaling nearly $1 million. In 2009, Norwood allegedly falsely claimed a refund in the amount of $94,450 in a false tax return he filed for the purported “Corey Norwood Trust.”
After filing a document in 2011 with the Cook County Recorder of Deeds stating that he was to be known as “Amun Re Barber El,” Norwood allegedly submitted to the IRS three false decedent estate tax returns for 2008, 2009, and 2010, indicating that Norwood had died and “Amun Re Barber El” was the executor of his estate. Each of the three estate returns allegedly falsely claimed a tax refund of $300,000, according to the charges. The government is being represented by Assistant U.S. Attorney Stephen Heinze.
A tax return preparer, MICHAEL SINGLETON, is awaiting sentencing after pleading guilty to preparing 549 fraudulent tax returns between 2005 and 2007 that caused the government a tax loss of $2,854,800. Singleton, 48, of Chicago and formerly of Homewood, operated ITA Services, and admitted preparing tax returns for clients that included fabricated information enabling them to obtain deductions for charitable contributions, rental properties, dependents, and business expenses, as well as other expenses that were non-existent and did not entitle his clients to a refund. Singleton was indicted in 2010 and pleaded guilty in June 2012 to two counts of assisting in the preparation of false tax returns. He faces a maximum sentence of three years in prison and a $250,000 fine on each count, and his plea agreement anticipates a federal sentencing guidelines range of 46 to 57 in prison. Singleton was scheduled to be sentenced today, but the sentencing was postponed and no new date has yet been set. (AUSA Tony U. Iweagwu, Jr.)
In other recent cases:
JOHN AUSTIN, 70, of Northlake, who owned and operated N-Less Travel & Taxes, a tax preparation business in Northlake, was charged with assisting in the filing of approximately 1,292 false tax returns for some 741 different clients for tax years 2008 through 2010, and causing the government a tax loss of approximately $1,292,000. Austin allegedly reduced the tax liabilities and increased the tax refunds for clients by fraudulently misrepresenting their filing status, overstating and misrepresenting expenses, and misrepresenting taxpayers’ eligibility to claim tax credits. Austin has pleaded not guilty to two counts of assisting in the preparation of false tax returns that were filed on March 4. (AUSA Andrew DeVooght.)
BILL COOPER, 39, of Schaumburg and formerly of Arlington Heights, who owned a psychic reading business in Arlington Heights and Tampa, Fla., pleaded guilty on March 7 to two misdemeanor counts of failing to file individual income tax returns. Cooper admitted that he earned gross income of approximately $305,427 in 2006; $311,751 in 2007; and $100,356 in 2008, and failed to file federal income tax returns for each of those years. Cooper faces a maximum sentence of a year in prison and a $100,000 fine on each of the two counts and his plea agreement anticipates a sentencing guidelines range of 15 to 21 months in prison. He is scheduled to be sentenced on July 15. (AUSA Tyler Murray.)
CAROL FORTINO, 53, of Woodridge, who was a tax return preparer associated with AAF Accounting, Inc., on the city’s northwest side, pleaded guilty on March 7 to assisting in the filing of at least 42 false tax returns for at least 15 separate clients for tax years 2006 through 2009, and causing the government a tax loss of approximately $103,947. Fortino admitted that she fraudulently increased the amount of tax refunds for taxpayers by overstating and misrepresenting expenses, such as claiming inflated property taxes, gifts to charity, and unreimbursed business expenses, which were used to decrease their taxable income. Fortino faces a maximum sentence of three years in prison and a $250,000 fine and her plea agreement anticipates a federal sentencing guidelines range of 18 to 24 months in prison. She is scheduled to be sentenced on July 11. (AUSA Kaarina Salovaara.)
PAUL URDAN, 46, of Highland Park, a commissioned salesman, has pleaded not guilty after being indicted in February on three felony counts of filing false federal income tax returns and two misdemeanor counts of failing to file tax returns. According to the charges, Urdan opened two bank accounts in the name of a business partnership and directed his employer to make his commission checks payable at various times to his wife and the partnership. Between 2006 and 2008, Urdan received commission income, both directly and indirectly through his wife and the business partnership, totaling $332,253 in 2006; $466,173 in 2007; and $348,500 in 2008. Urdan allegedly filed false business partnership returns for 2006, 2007, and 2008. The charges also allege that he failed to file individual tax returns for 2007, when he received gross income of approximately $466,173, and for 2008, when he received gross income of approximately $348,500, the charges allege. (AUSA Christopher McFadden.)
TOWANA VIRAMONTES, 37, of McHenry, has pleaded not guilty after being indicted in January on 15 counts of making false claims for tax refunds in 2008 and 2009. Viramontes, who was the principal of a telemarketing business that operated under various names, including American Creative Solutions, Inc., Apple Leasing, Inc., and Leads 2 Guaranteed Loans, allegedly prepared false Forms W-2 that she provided to at least 15 individuals, some of whom worked for her business and some who did not. The charges allege that Viramontes caused these individuals to file false claims for income tax refunds, typically a few thousand dollars each, using the false W-2s that she provided and then to pay her a substantial portion of the tax refunds they obtained. (AUSA Dylan Smith.)
Assisting in the preparation of false tax returns or filing a false tax return carries a maximum sentence of three years in prison and a $250,000 fine on each count. Making a false claim upon the United States carries a maximum sentence of five years in prison and a $250,000 fine. Failing to file an income tax return, a misdemeanor, carries a maximum sentence of a year in prison and $100,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that criminal charges 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.
Federal Grand Jury in Fort Wayne Returns IndictmentsRead the Press Release
Fort Wayne, INCThe United States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returned the following Indictment on March 27, 2013: Arturo Deluna, 46, of Fort Wayne, Indiana, is charged in a three count Indictment with conspiracy to possess with intent to distribute cocaine, possession with intent to distribute cocaine, and use of communication facility in the conspiracy to possess and possess with intent to distribute cocaine, all occurring on or about May 4, 2010. These charges were filed as the result of a joint investigation conducted by the Allen County Police Department Vice and Narcotics Division and the FBI Fort Wayne Safe Streets Task Force, which is comprised of FBI agents and officers from the Indiana State Police, Allen County Police Department, and Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
##END##Edmond Man to Serve Year in Prison and Pay Nearly $920,000 in Restitution for Defrauding InvestorsRead the Press Release
Oklahoma City, Oklahoma – Today, GREGORY SCOT CONRADY, 52, of Edmond, Oklahoma, was sentenced by United States District Judge Timothy D. DeGuisti to serve 12 months and one day in prison for money laundering and wire fraud, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. Conrady was also sentenced to pay $919,150.74 in restitution to two victims, serve two years of supervised release after his release from prison, and perform 104 hours of community service.
According to court documents and information from court proceedings, in April of 2007 Conrady solicited financial backing from investors to purchase portfolios of distressed debts for pennies on the dollar and then attempted to collect those debts to make money. Conrady used debt brokers to locate debt portfolios for purchase, with the debts consisting primarily of promissory notes secured by mortgages on residential properties. Conrady formed Coltate Capital, LLC, and the investors invested over $10 million to carry out this enterprise.
From November of 2007 through April of 2010, Conrady defrauded the investors by reporting broker’s fees substantially higher than what he actually negotiated with the broker and diverting the excess funds to Conrady’s personal companies, Coltate Properties, LLC, and Silverstreak, LLC. Conrady’s fraudulent scheme also involved the misappropriation of individual mortgage payments that were mailed to Coltate Capital, LLC.
Conrady was indicted by a federal grand jury on July 17, 2012. He pled guilty to committing money laundering and mail fraud on August 29, 2012.
This case was investigated by the Internal Revenue Service Criminal Investigation, Federal Bureau of Investigation, and the United States Secret Service. The case was prosecuted by Assistant U.S. Attorney Amanda Maxfield Green.
District Woman Sentenced to 16 Years in PrisonRead the Press Release
On Charges in Two Stabbings, Including One That Killed a Man
-Attacks Took Place in Northeast Washington-WASHINGTON – Quindetta Cosby, 49, of Washington, D.C. was sentenced today to 16 years in prison for carrying out two stabbing attacks last year in Northeast Washington, including one that killed a man, U.S. Attorney Ronald C. Machen Jr. announced.
Cosby pled guilty in November 2012 to one count of voluntary manslaughter while armed and one count of felony assault with significant bodily injury. She was sentenced by the Honorable Thomas J. Motley. Upon completion of her prison term, Cosby will be placed on eight years of supervised release.
In the fatal attack, according to the government’s evidence, on Sept. 13, 2012, Cosby got into an argument at about 6:20 p.m. with the victim, Paul Morris, in the 2200 block of Fourth Street NE. Cosby’s friend also got involved in the argument, which escalated into a physical fight. Mr. Morris, 49, and Cosby’s friend threw punches at each other. Cosby joined the fight, which her friend was losing, and hit Mr. Morris. Mr. Morris struck Cosby, knocking her down.
Cosby then pulled out a knife and stabbed Mr. Morris in the left side of his upper torso. Mr. Morris fled into the 300 block of Bryant Street, NE, while dripping blood from the stab wound. Cosby chased Mr. Morris while screaming threats to kill him. When Mr. Morris retreated to a porch on the street, Cosby kept following him, threatened again to kill him, and stabbed him on the porch. Mr. Morris died shortly thereafter.
The other attack took place on July 16, 2012. In that incident, Cosby got into an argument with a woman in an apartment in the 600 block of Edgewood Street NE. The argument spilled into the hallway, where she pushed the victim to the floor. Cosby attacked the victim with a knife, resulting in a significant cut to the victim’s arm.
In announcing the sentence, U.S. Attorney Machen commended the work of the detectives and officers of the Criminal Investigations Division and the Fifth District of the Metropolitan Police Department. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Bridget Fitzpatrick, Victim Witness Advocate Tamara Ince and Paralegal Specialist Marian Russell. Finally, U.S. Attorney Machen praised Assistant U.S. Attorney Shana Fulton, who prosecuted the case.
13-120
District Man Sentenced to Six Years in PrisonRead the Press Release
On Charges in Armed Robbery and Shooting
-One of the Victims Shot Multiple Times, Yet Survived-WASHINGTON –Darius Joshua, 19, of Washington, D.C., was sentenced today to six years in prison on charges stemming from a 2011 shooting in the Congress Park community of Southeast Washington, announced U.S. Attorney Ronald C. Machen Jr.
Joshua pled guilty in January 2013 in the Superior Court of the District of Columbia to charges of aggravated assault, attempted robbery, and carrying a pistol without a license. He was sentenced by the Honorable William M. Jackson. Upon completion of his prison term, Joshua will be placed on three years of supervised release.
According to the government’s evidence, on June 21, 2011, at about 11 p.m., Joshua ambushed a man and a woman with a loaded handgun as the victims walked through a shortcut next to what used to be McGogney Elementary School in the 3400 block of Wheeler Road SE. He ordered the woman to the ground and put the gun to her head before robbing her and telling her to leave the scene. Joshua ordered the man to stay behind and then he shot him multiple times. The victim was rushed to a hospital for emergency surgery and survived the attack.
In announcing the sentence, U.S. Attorney Machen commended the efforts of the detectives of the Metropolitan Police Department’s Seventh District who investigated the case, as well as the members of the community whose cooperation led to the defendant’s prosecution. He also thanked those who worked on the case from the U.S. Attorney’s Office, including Jim Brennan, Tanya Via, Laverne Forrest, Debra Cannon, and Michael Hailey of the Victim Witness Assistance Unit; Paralegal Specialists D’Yvonne Key and Richard Cheatham, and Assistant U.S. Attorney Mervin A. Bourne, Jr., who investigated and prosecuted the case.
13-118District Man Sentenced to 15 Months in PrisonRead the Press Release
For His Role in Northwest Washington Robbery
-Alert Citizen Helped Police Find the Defendant-WASHINGTON – Walter Little, 20, of Washington, D.C., was sentenced today to 15 months of incarceration for his role in a robbery last fall in Northwest Washington, announced U.S. Attorney Ronald C. Machen Jr.
Little pled guilty in January 2013 in the Superior Court of the District of Columbia to a charge of robbery. The Honorable A. Franklin Burgess, Jr. sentenced him to five years in prison, but suspended all but 15 months of the time on the condition that Little successfully complete four years of probation. Little also must pay $900 in restitution to the victim.
According to the government’s evidence, Little attacked a man at about 4:30 p.m. on Oct. 26, 2012, in the 4800 block of Ninth Street NW. He brandished a pistol and hit the victim with the weapon, causing the man to lose consciousness. Then he, along with two other males, robbed the man of his wallet containing between approximately $900 and $1000.
Six days after the robbery, a witness who had seen Little commit the crime saw him again at Ninth and Decatur Streets NW, and alerted the police. Once officers were on scene, the witness positively identified Little as the person who had the gun and committed the robbery.
After his arrest, Little admitted to taking part in the robbery, and taking $200 of the $900 stolen, but he maintained that he was not the person with the gun. No other arrests have been made in the case.
In announcing the sentence, U.S. Attorney Machen commended those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Debra McPherson and Assistant U.S. Attorney Natalia Medina, who prosecuted the case.
13-121District Man Found Guilty of Robbery ChargeRead the Press Release
In 2012 Attack at Deanwood Metro Station
-Defendant Pointed a Gun in Victim’s Face Before Taking His Wallet-WASHINGTON – Zachary Pollard, 18, of Washington D.C., has been found guilty by a jury of robbery in an attack last year at the Deanwood Metro station in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced today.
Pollard was found guilty on April 4, 2013, following a trial in the Superior Court of the District of Columbia. The Honorable Heidi M. Pasichow scheduled sentencing for June 11, 2013.
According to the government’s evidence, Pollard and an unidentified accomplice approached the victim at about 8:30 a.m. on Nov. 18, 2012 near the Metro station, in the 4700 block of Polk Street NE. Pollard, standing in front of the victim, pulled out a gun and pointed it in the man’s face while the accomplice threw the victim to the ground. Pollard then rifled through the victim’s pockets and took the victim’s wallet, which contained credit cards and $11. The victim reported the crime to the station manager, who called Metro Transit Police.
Less than 10 minutes later and about a half mile from the Deanwood station, a Metro Transit Police officer spotted Pollard, who matched the description given for a police lookout. The officer stopped Pollard, who was eating a fast-food apple pie. Minutes later, as other officers arrived on the scene and without having been told what had been taken in the robbery or the reason why he had been stopped, Pollard spontaneously stated, “Man, I didn’t rob nobody for no $11.” Officers recovered $9 in cash from the defendant.
At the time of the crime, Pollard was free on personal recognizance while awaiting trial for unauthorized use of a motor vehicle and other charges. He was arrested in that case on Oct. 14, 2012. Pollard has pled not guilty in that matter and is awaiting trial later this month.
In announcing the verdict, U.S. Attorney Machen praised the work of the detective, officers, and mobile crime scene officers from the Metro Transit Police Department who investigated the case. He also acknowledged the efforts of those who worked on the matter for the U.S. Attorney’s Office, including Paralegal Specialists Antoinette Sakamsa and Theresa Nelson, and Victim Advocate Kristina Rose. Finally, he commended the work of Assistant U.S. Attorney Peter Lallas, who prosecuted the case.
13-119Deming, N.M., Man Sentenced to Federal Prison for Conspiring to Transport Illegal AliensRead the Press Release
ALBUQUERQUE – Steven Kasey Dupree, 30, of Deming, N.M., was sentenced this morning to 15 months in prison followed by three years of supervised release for his conviction for conspiracy to transport illegal aliens. Dupree’s sentence was announced by U.S. Attorney Kenneth J. Gonzales and Chief Patrol Agent Scott A. Luck, El Paso Sector, U.S. Border Patrol.
Dupree and co-conspirator Cynthia M. Espinoza, also of Deming, N.M., were arrested in Feb. 2012, on a criminal complaint charging them with conspiracy to transport illegal aliens. According to the complaint, in Feb. 2012, Dupree and Espinoza conspired with others to transport seven illegal aliens from Mexico to the United States. On Feb. 7, 2012, Border Patrol Agents went to Dupree’s residence in response to a call notifying authorities that illegal aliens were on the premises. On arrival, the Border Patrol Agents found three illegal aliens in the residence, including two who each reported paying an $1800 fee to be smuggled across the United States/Mexican border and transported to Albuquerque. The Agents also learned that
Dupree had departed earlier that day to transport four illegal aliens from his residence to Phoenix, Ariz. Dupree and Espinoza were arrested later that day in Deming.Dupree entered a guilty plea in May 2012, to a felony information charging him with conspiracy to transport illegal aliens. In his plea agreement, Dupree admitted conspiring with Espinoza and others to transport seven illegal aliens in Feb. 2012 for financial gain.
Dupree has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. Espinoza pled guilty in April 2012 to two counts of conspiring to transport illegal aliens and was sentenced to three years of probation in July 2012.
This case was investigated by the Counter Organized Alien Smuggling Task Force (COAST) of the U.S. Customs and Border Protection at the Deming Border Patrol Station with assistance from the Luna County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office.
Danville Business Owner Indicted for Wire Fraud and Identity TheftRead the Press Release
LEXINGTON, KY - The owner of a children’s fun and gaming center in Danville, KY., is accused of committing wire fraud and identity theft.
A federal grand jury in Lexington returned an indictment charging 49-year-old Paul Christopher Turner with seven counts of wire fraud and one count of aggravated identity theft.
According to the indictment, in July 2010, Turner, the owner and operator of Go Go Gorillas gaming center, attempted to obtain a loan to purchase equipment for his company. In seeking the loan, it is alleged that Turner falsely represented to the lending entity that one of his investors was willing to personally guarantee the loan. Turner allegedly offered the investor’s property as collateral for the loan without her knowledge.
The indictment further alleges that Turner forged the investor’s signature on loan and mortgage documents. Turner is also alleged to have forged the signature of a notary public on the documents.
The United States Attorney for the Eastern District of Kentucky, United States Postal Inspection Service, Kentucky State Police and the Commonwealth of Kentucky Department of Financial Institutions, Division of Securities, jointly made the announcement.
The investigation preceding the indictment was conducted by the United States Postal Inspection Service, the Kentucky State Police and the Department of Financial Institutions. The indictment was presented to the grand jury by Assistant U.S. Attorney Kenneth R. Taylor.
Turner is set to appear in court for arraignment on April 16 Wire fraud carries a maximum penalty of 20 years in prison and the Aggravated Identity Theft carries a mandatory sentence of two years in prison.
The indictment of a person by a grand jury is an accusation only, and that person is presumed innocent unless proven guilty.
Convicted Sex Offender Sentenced to Federal Prison for Failure to RegisterRead the Press Release
PROVIDENCE, R.I. – Denny Mendoza, 38, formerly of Providence, was sentenced today to 18 months in federal prison for failing to register as a sex offender, announced United States Attorney Peter F. Neronha and United States Marshal Jamie A. Hainsworth.At sentencing, U.S. District Court Judge John J. McConnell, Jr. also ordered Mendoza to serve 10 years of supervised release upon completion of his prison term. Mendoza pleaded guilty in October 2012 with violating the Sex Offender Registration and Notification Act (SORNA).
SORNA provides a comprehensive set of federal standards for sex offender registration and notification in the United States through a nationwide network of sex offender registration and notification programs. Additionally, SORNA requires registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school, and to make periodic in-person appearances to verify and update their registration information.
According to information presented to the court, Mendoza, who had registered as a sex offender in September 2010 while living in Providence, failed to notify authorities when he moved to locations in Fall River and Chelsea, Mass., beginning in May 2011.
Mendoza was arrested on November 8, 2011, in Chelsea, Mass., by members of the U.S. Marshals led Sex Offender Task Force (SOLEMN) and Chelsea detectives.
The case was prosecuted by Assistant U.S. Attorney Richard W. Rose.
Contact: 401-709-5357
[email protected]Chinese Business Executive Convicted for Illegal Trade in Rhino HornRead the Press Release
Shusen Wei, 45, a citizen of China, pleaded guilty today in Miami federal court to charges stemming from his involvement in the smuggling of a carved rhinoceros horn from the United States to China, announced Ignacia S. Moreno, Assistant Attorney General for the Environment & Natural Resources Division, Wifredo A, Ferrer, U.S. Attorney for the Southern District of Florida, and William C. Woody, Chief of the U.S. Fish & Wildlife Service’s Office of Law Enforcement.
Wei entered his guilty plea before U.S. District Judge Cecilia M. Altonaga, who scheduled sentencing for April 29, 2013. Wei faces a possible term in prison of up to 10 years on the single count filed against him, a fine of up to $250,000, and a term of supervised release of up to three years.
According to documents filed in Court, Wei traveled from China to Miami, Fla., in January 2013, to attend the Original Miami Beach Antique Show. While attending the show, he roomed with another Chinese national who was later arrested for smuggling of rhinoceros horns from the United States to China. In pleading guilty, Wei admitted that he paid commissions to this other individual to purchase objects made of rhino horn in the United States and smuggle them to China and that he knew that this individual was engaged in the smuggling of protected species of wildlife, including rhinoceros horn and elephant ivory. Wei also knew that this individual had paid bribes to Chinese customs officials to assist in his smuggling. Special Agents with the U.S. Fish & Wildlife Service learned that Wei had previously purchased libation cups made from carved rhinoceros horns from this same individual. One of those items was sold at a U.S. auction house for $242,500. This and other photographs of carved rhinoceros horns were found on Wei’s cell phone.
Rhinoceros are an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under United States and international law, and all black rhinoceros species are endangered. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by 178 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets. Nevertheless, the demand for rhinoceros horn and black market prices have skyrocketed in recent years due to the value that some cultures have placed on ornamental carvings, good luck charms or alleged medicinal purposes, leading to a decimation of the global rhinoceros population. As a result, rhino populations have declined by more than 90 percent since 1970. South Africa, for example, has witnessed a rapid escalation in poaching of live animals, rising from 13 in 2007 to 668 in 2012.
Mr. Ferrer commended the investigative efforts of the Special Agents of the U.S. Fish & Wildlife Service and thanked the U.S. Attorneys Offices in the Eastern District of New York and the District of New Jersey for their assistance. The case is part of “Operation Crash” (named for the term used to describe a herd of rhinoceros) which is an ongoing multi-agency effort to detect, deter, and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns. This matter is being prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald and Richard A. Udell, a Senior Counsel with the Environmental Crimes Section of the U.S. Department of Justice.
Career Offender Sentenced to 13 Years for Trafficking Methamphetamine, Possession of A FirearmRead the Press Release
SAN JOSE - Jose Ezequiel Monroy was sentenced on April 3, 2013, to thirteen years in prison for distributing methamphetamine and being a felon in possession of a firearm, United States Attorney Melinda Haag announced.
Monroy pleaded guilty on January 9, 2013, to one count of possession with intent to distribute and distribution of methamphetamine, in violation of 21 U.S.C. § 841(a)(1), and one count of being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g). According to the plea agreement, Monroy admitted to selling methamphetamine, a Intratec TEC-DC9 pistol with thirty rounds of ammunition, a Winchester shotgun, a Norinco model MAK-90 rifle, a Charter Arms revolver, and a Mossberg shotgun to a person working undercover for the government.
"Criminals who traffic in drugs regularly carrying firearms to protect their illicit enterprise. These drugs traffickers are a threat to our community and should be held accountable," stated Joseph M. Riehl, Special Agent in Charge, San Francisco Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives.
Monroy, 61, of Salinas, California, a Mexican national with no legal status in the United States, was indicted by a federal grand jury on September 14, 2011. He was charged with three counts of possession with intent to distribute and distribution of methamphetamine, and four counts of being a felon in possession of a firearm.
The sentence was handed down by U.S. District Court Judge Lucy H. Koh. Monroy had three prior felony convictions at the time of his arrest, each for possessing narcotics with the intent to sell. Judge Koh found that due to Monroy’s prior felony drug trafficking convictions he was a career offender under the U.S. Sentencing Guidelines. Judge Koh also sentenced Montoy to a ten-year period of supervised release.
Dan Kaleba is the Assistant U.S. Attorney who is prosecuting the case with the assistance of legal tech Elise Etter. The prosecution is the result of a nearly two year investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Bristol Man Admits Illegally Possessing FirearmsRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that WAYNE EVANGELISTA, also known as “Wayne Nance,” 34, of Bristol, pleaded guilty today before Senior United States District Judge Warren W. Eginton in Bridgeport to three counts of possession of a firearm by a previously convicted felon.
According to court documents and statements made in court, prior to March 2011, EVANGELISTA had been convicted of multiple felony offenses in Connecticut state court and federal court in Connecticut, including criminal possession of a firearm (twice), third degree burglary, second degree forgery, bank fraud, and both first and second degree larceny.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
In March 2011, EVANGELISTA convinced another individual, who had a valid firearms permit, that he was a Bail Enforcement Agent. In March and April 2011, EVANGELISTA persuaded the individual to purchase a .40 caliber pistol and a .380 caliber pistol on his behalf, and EVANGELISTA took possession of the firearms after they were purchased. Also in April 2011, EVANGELISTA possessed a 9mm pistol that he cleaned for the same individual who had purchased the other two firearms for him.
Judge Eginton has scheduled sentencing for June 28, 2013, at which time EVANGELISTA faces a maximum term of imprisonment of 10 years and a fine of up to $250,000 on each count.
EVANGELISTA has been detained since his arrest on March 15, 2012.
This matter has been investigated by the Connecticut State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant United States Attorney Jonathan S. Freimann.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Anacortes Nurse Pleads Guilty to Tampering with Narcotic Pain Medications at Hospice FacilityRead the Press Release
A 33-year-old nurse from Anacortes, Washington pleaded guilty today in U.S. District Court in Seattle to tampering with consumer products and acquiring a controlled substance by fraud or misrepresentation, announced U.S. Attorney Jenny A. Durkan. ERIN LINVOG, a former nurse at Fidalgo Care Center & Rosario Assisted Living, faces up to ten years in prison when sentenced by U.S. District Judge Richard A. Jones on July 12, 2013.
According to the facts admitted in the plea agreement, in June 2010, LINVOG began working at the Rosario Assisted Living Center, an elder care facility in Anacortes, Washington, that offers skilled nursing and hospice care to terminally ill patients. LINVOG became credentialed as a registered nurse in November 2011. Sometime in late 2011, LINVOG began stealing narcotics from the facility for her own use. Using her position and authority as a nurse, she requested and received orders for morphine from pharmacies on behalf of Rosario patients, but then diverted entire bottles of narcotics rather than properly logging them into the assigned medicine carts. Moreover, in multiple instances admitted in the plea agreement, LINVOG removed liquid morphine from medicine bottles for her own use, and replaced the missing morphine with tap water, before returning the tampered bottles back to the facility’s medicine carts, where they could have been, and at times were, administered to patients.
The morphine was intended to alleviate the pain of various elderly patients in end-of-life care. LINVOG’s conduct meant that patients near the end of their life were receiving inadequate amounts of medicine to treat their pain and discomfort, and that medical staff did not have a clear picture of the appropriate dosage – since the morphine on hand was diluted. The conduct created the risk that patients could be overdosed if treated with non-diluted medicine, as well as the risk they would suffer needlessly in their final days. LINVOG’s conduct was discovered by the facility in February 2012, which led to her termination shortly thereafter.
The case was investigated by the United States Food and Drug Administration, Office of Criminal Investigations, and the Anacortes Police Department. The case is being prosecuted by Assistant United States Attorneys Steven Masada and Jerrod Patterson.
Albany Man Pleads Guilty to $119,950 Fraud SchemeRead the Press Release
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Albany, Mo., man pleaded guilty in federal court today to defrauding an elderly Maryville, Mo., couple.
David J. McConkey, 42, of Albany, waived his right to a grand jury and pleaded guilty before U.S. District Judge Howard F. Sachs on Thursday, April 4, 2013, to a federal information that charges him with wire fraud.
By pleading guilty today, McConkey admitted that he defrauded a Maryville husband and wife in a scheme that lasted from April 2011 to April 2012. McConkey told the couple that he was aware of an incident involving their adult daughter that allegedly occurred approximately 28 years ago in the state of Iowa. McConkey told them that if they would pay him $119,950 he would keep their daughter from going to prison. This representation was false, and known by McConkey to be false. The Maryville couple gave McConkey a $119,950 cashier’s check, which he used for his own personal benefit.
Under federal statutes, McConkey is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by First Assistant U.S. Attorney David M. Ketchmark. It was investigated by the FBI.
4 April 2013
Yahia Asad Sentenced for Conspiracy to Commit Money Laundering, Conspiracy to Defraud the Government with Respect to Claims, and Aggravated Identity TheftRead the Press Release
YAHIA ASAD, age 50, of Tallahassee, Florida, was sentenced yesterday by Chief United States District Judge Sarah S. Vance to 51 months imprisonment, announced U.S. Attorney Dana J. Boente. Additionally, ASAD was ordered to pay restitution in the amount of $379,310.
According to court documents, from January 2010 through March 2012, ASAD and others perpetrated a tax fraud scheme which involved filing false tax returns using the stolen identities of deceased or imprisoned persons, using inflated and erroneous financial information, causing a much larger refund than would be allowed legitimately which resulted in a significant loss to the government.
"This prosecution serves notice, especially during tax filing season, that we will aggressively prosecute tax fraud and identity theft,” said United States Attorney Boente. “Mr. Asad stole from the people of the United States and will be punished for that crime.”
“IRS-CI hopes that the sentencing of Yahia Asad serves as a warning to others that IRS and the U.S. Attorney’s Office takes money laundering and identity theft violations very seriously,” stated IRS Criminal Investigation Acting Special Agent in Charge, Damon Rowe. “We will continue to work with our law enforcement counterparts to vigorously pursue these investigations.”
“Criminal schemes such as this rob the government of revenue and also shortchange millions of law-abiding Americans who pay their taxes consistently and honestly,” said Raymond R. Parmer Jr., Special Agent in Charge of HSI New Orleans. "Anyone attempting to defraud the government should be on notice that HSI aggressively investigates these types of crimes and will seek prosecution when they’re discovered.” Parmer oversees a five-state area of operation to include Louisiana, Alabama, Arkansas, Mississippi and Tennessee.
This case was investigated by Special Agents of the U.S. Department of Homeland Security/Homeland Security Investigations and the Internal Revenue Service-Criminal Investigations and was prosecuted by Assistant U.S. Attorney Tracey N. Knight.
Woodlands Man Convicted of Using Fake CIA CredentialsRead the Press Release
HOUSTON - Paul Alan White, aka Jonathan Alan Davenport, 57, of The Woodlands, has entered a plea of guilty to two counts alleging he impersonated a public servant, United States Attorney Kenneth Magidson announced today. The plea was entered late yesterday before U.S. District Judge Ewing Werlein Jr.
According to the factual basis in support of the plea, White posed as a CIA agent to others at different times during 2011 and 2012 in order to obtain personal information from individuals and to have authorities give him privileges as well as official record documents.
During March 2011, White had convinced a co-worker that he worked with Special Ops within the CIA and that they had to fill out an application form for a security clearance with the CIA. White apparently obtained the form from the Internet. The co-worker completed the form, which included personal information, such as names of family members and friends, education, employment history and personal identification data such as a Social Security number, a Texas Driver’s license number and a U.S. passport number. As directed by White, the co-worker also ordered their own credit report and gave White a copy of their passport.
The next month, White also attempted to recruit the co-worker’s friend from the co-worker’s Facebook site, using an alias. White reported to be conducting a reference check and also tried to recruit them for a position with the CIA. At the request and demand of White, pretending to act as an agent under the authority of the CIA, the friend sent the security clearance form via Fed-Ex with their personal information on it along with a copies of their birth certificate, Social Security card, driver’s license and passport.
Also that month, White introduced himself to Texas Department of Public Safety troopers as an agent working for the CIA. White showed a badge and a credential thought to be from the CIA, and stated he had retired from CIA and was rehired to run “backgrounds” on people. White, while pretending to be an officer and employee of the United States, asked the trooper to run a criminal history check on his co-worker. White represented the request as an “official request” from a CIA officer. The trooper did so and provided the result.
Later, the CIA was contacted to conduct a check for any and all employment either directly or indirectly of White, aka Davenport. The CIA confirmed he did not work for the agency in any capacity. A search warrant was executed at White’s home revealed several false and fraudulent purported official U.S. government identifications and badges allegedly belonging to the CIA.
Judge Werlein has set sentencing for June 28, 2013, at which time he faces up to three years in federal prison and a possible $250,000 fine on each count. White will remain in custody pending that hearing.
The case was investigated by the FBI and Houston Police Department. Assistant U.S. Attorney (AUSA) Joe Porto is prosecuting the case. AUSA Ken Dies handled the hearing yesterday.
Winner Man Pleads Guilty to Firearm ViolationRead the Press Release
United States Attorney Brendan V. Johnson announced that Joshua Felix, age 39, of Winner, South Dakota appeared before U.S. District Judge Roberto A. Lange on April 2, 2013 and pled guilty to Prohibited Person in Possession of a Firearm. The maximum penalty upon conviction is 10 years in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 special assessment.
Felix was convicted of domestic violence simple assault on June 15, 2004 in Tripp County. Having been convicted of a crime of domestic violence, Felix was prohibited from possessing firearms by operation of federal law. On March 15, 2012, law enforcement found Felix to be in possession of a rifle.
The investigation was conducted by the Tripp County Sheriff’s Office and the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Timothy M. Maher.
A presentence investigation was ordered and a sentencing date was set for June 24, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Westmoreland County Man Pleads Guilty in Methamphetamine Distribution SchemeRead the Press Release
PITTSBURGH, Pa. - A Westmoreland County man pleaded guilty in federal court to a charge of violating the federal narcotics laws, United States Attorney David J. Hickton announced today.
Kevin Nicol, 57, of Harrison City, Pa., pleaded guilty to one count before United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that Nicol was involved in a conspiracy to distribute more than 50 grams of methamphetamine. The parties stipulated that 279.2 grams of "ice," also known as pure methamphetamine, were attributable to Nicol for purposes of the Sentencing Guidelines.
Judge Conti scheduled sentencing for 2:00 p.m. on July 12, 2013. The law provides for a maximum sentence of not less than 5 years and up to 40 years in prison, a fine of $5,000,000, 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 Stephen R. Kaufman is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation that led to the prosecution of Nicol.
Washington, D.C., Financial Consultant Sentenced to Almost Six Years in Federal Prison for Defrauding Santa Fe BusinessRead the Press Release
ALBUQUERQUE –Daryl J. Hudson, III, 60, of Washington, D.C., was sentenced this afternoon to 70 months in federal prison followed by three years of supervised release. Hudson also was ordered to pay $1,875,000.00 in restitution to the victim of his crimes. Hudson’s sentencing was announced by U.S. Attorney Kenneth J. Gonzales and Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI.
Hudson, a graduate of Georgetown University Law Center who previously served as Senior Counsel in the Enforcement Division of the U.S. Securities and Exchange Commission, was indicted in May 2012, and charged with seven counts of wire fraud. At the time Hudson was the Chairman and CEO of Hampden Kent Group, LLC (HKG), a Washington, D.C. based company that advertised its ability to obtain debt funding for start-up businesses in the green energy sector.
In Sept. 2012, a federal jury found Hudson guilty of all seven counts in the indictment after a nine-day trial. By its verdict, the jury concluded that Hudson defrauded Bluenergy Solarwind, Inc. (BSI), a Santa Fe-based developer of green energy-related equipment, of $85,000.00 in 2011 by falsely representing that he could secure debt funding to help the company grow. The evidence at trial established that, between July 12, 2011 and Aug. 19, 2011, Hudson designed and executed a scheme to defraud BSI by falsely representing that he had ready access to reliable sources of debt funding for BSI.
According to the trial testimony, in early 2011, the president of BSI began seeking approximately $80 million in debt funding so that BSI could manufacture new solar wind turbines. In an effort to obtain this financing, he attended networking events designed to connect entrepreneurs with funding sources, and eventually was referred to Hudson as a person who could locate funding for BSI. By mid-July 2011, the BSI president contacted Hudson to discuss the prospect of engaging HKG to locate and place $80 million dollars in debt funding for BSI. On July 12, 2011, Hudson provided the BSI president with a draft service agreement setting forth the terms on which HKG could be hired to locate debt funding for BSI. The service agreement required BSI to pay a $300,000.00 retainer to HKG, with $150,000.00 to be paid up front and the balance to be paid upon receipt of a loan commitment from Hudson’s lender. Thereafter, on July 14, 2011, Hudson represented that, upon the signing of the service agreement, HKG would issue a loan commitment supported by treasuries that BSI could use to help obtain customer orders and equity funding.
In mid-July 2011, the BSI president and Hudson agreed to enter into the service agreement with the understanding that BSI would pay approximately $80,000.00 of the first part of the retainer payment by July 20, 2011 and pay the remaining $70,000.00 within 30 days. Thereafter, BSI wired a total of $85,000.00 to HKG’s bank account in partial payment of HKG’s retainer fee, and Hudson and the president of BSI executed the service agreement on July 21, 2011. On July 22, 2011, Hudson transmitted two documents to BSI; a document entitled DLoan CommitmentD and a document entitled DSafekeeping Receipt.D The Safekeeping Receipt was a false and fraudulent document provided to BSI by Hudson as part of his scheme to defraud BSI.
Over the next two weeks, and as part of his scheme to defraud, Hudson caused the relationship with BSI to deteriorate and the BSI president notified Hudson that BSI could no longer work with HKG. When the president of BSI requested the return of a portion of the retainer fee, Hudson refused. On Aug. 11, 2011, after confirming that the Safekeeping Receipt provided by Hudson was a false and fraudulent document, BSI demanded the return of full $85,000.00 retainer. Hudson did not respond to BSI’s allegations regarding the falsity of the Safekeeping Receipt and instead claimed that BSI violated the service agreement by misusing the Safekeeping Receipt and demanding damages in the amount of $965,000.00.
Between July 12, 2011 and Aug. 19, 2011, Hudson used wire communications, specifically three telephone calls, three E-mails and a facsimile, on seven separate occasions in order to execute the scheme to defraud BSI. Each of these wire communications served as the basis for the seven counts of wire fraud in the indictment.This case was investigated by the Albuquerque Division of the FBI and was prosecuted by Assistant U.S. Attorneys John C. Anderson and Fred J. Federici, III.
Vancouver Washington Man Indicted for Trafficking in Counterfeit Vehicle AirbagsRead the Press Release
A 25 year-old Vancouver, Washington man was arrested earlier this week on a four count indictment charging him with trafficking in counterfeit goods, announced U.S. Attorney Jenny A. Durkan. VITALIY YAREMKIV, was arrested April 2, 2013 and will have a detention hearing today at 3:15 PM in U.S. District Court in Tacoma. Prosecutors allege that between June 2011 and June 2012, YAREMKIV sold more than 900 counterfeit vehicle airbags he had purchased from a source in China. If convicted, YAREMKIV faces up to ten years in prison and a $2 million fine. Trial in the case is scheduled for May 28, 2013 in front of U.S. District Judge Ronald B. Leighton.
“Counterfeit airbags shred the safety systems built into our cars, which could cause catastrophic results. Counterfeit airbags may fail to deploy in crashes, or deploy in a ball of fire,” said U.S. Attorney Jenny A. Durkan. “I commend the investigation by the FBI and Homeland Security Investigations to stem the flow of these counterfeits to get them out of our cars and marketplace.”
According to the indictment, YAREMKIV operated a business, Vital Auto Parts and Sales, out of his Vancouver home. He allegedly imported counterfeit Honda, Subaru and Toyota airbags from sources in China and elsewhere, and sold them over the internet representing them as the genuine product. YAREMKIV sold at least 964 of the counterfeit airbags via eBay with a sales total of $137,243. YAREMKIV sold individual Honda airbags for an asking price of $110. Investigators believe that many of the airbags are sold to independent garages who install them in vehicles believing they have purchased a genuine airbag.
“Counterfeit air bags are untested, unregulated, and extremely unsafe,” said Brad Bench, Special Agent in Charge of HSI Seattle. “While law enforcement is working to stem the flow of these dangerous products into the U.S., it’s important that consumers are aware of this danger. Automobile safety experts say it’s critical that vehicle owners work with their automotive dealers and repair professionals to ensure they use the appropriate, original equipment parts in the event they need to replace their air bag.”
“Every day, people entrust their lives to safety devices because they have been thoroughly researched, rigorously tested, and carefully constructed,” said FBI Assistant Special Agent in Charge Carlos L. Mojica. “Counterfeit devices do not carry that same guarantee, threatening the lives of unknowing users and violating their trust. The FBI and its partners will continue to seek and stop those like Mr. Yaremkiv, who irresponsibly put innocent lives at risk for their personal, financial gain.”
Information for consumers regarding counterfeit airbags is available here: http://www.safercar.gov/
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI and Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Norman Barbosa.
Two Women Plead Guilty to Filing False Federal Income Tax ReturnsRead the Press Release
Gemarian Douglas, 38, of Alorton, Illinois, and Anayd Bluiett, 26, of St. Louis, Missouri, each pled guilty in federal court to the offenses of Filing False Federal Income Tax Returns, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The offenses each carry a maximum possible penalty of up to three years in prison. Sentencing is scheduled for July 18, 2013.
Anayd Bluiett admitted as part of the plea that she had false and fraudulent 2008, 2009 and 2010 federal income tax returns prepared by Prime Time Tax Services. Gemarian Douglas admitted that she had filed a false and fraudulent 2009 federal income tax return. Delaun Leflore and Carey Herron owned and operated Prime Time Tax Services (PTTS) located in Shiloh, Illinois. During the 2008-2011 filing seasons, Leflore and Herron used electronic software to prepare and file tax returns and they typically applied for refund anticipation loans. Leflore and Herron conspired together and with their clients to prepare false tax returns and claim fraudulent tax refunds. To accomplish this scheme, Leflore and Herron created false and fraudulent Schedule C income and expenses. The purpose of creating the false income was to maximize the earned income credit and other credits which generated large tax refunds. While meeting with their clients, Leflore and Herron discussed how to receive more money back by creating self-employment income. The clients agreed to participate in the scheme in order to receive a larger tax refund. Typically, the clients were referred to Leflore and Herron and visited the tax preparation business knowing they would file fraudulent tax returns. As part of the scheme, the clients were required to pay an extra cash fee to Leflore or Herron from the tax refund received. This amount was generally $500 in cash. This amount was in addition to the tax preparation fee which was automatically deducted from the tax refund by the bank processing the refund anticipation loan (RAL). Following the receipt of the RAL check, Leflore, Herron, or another representative of PTTS escorted the clients to a local check-cashing business, Belleville Quick Stop, located in Belleville, Illinois. After the client cashed the RAL check, the client immediately gave the $500 in cash to Leflore, Herron, or another representative of Prime Time. Leflore and Herron have already been prosecuted and are serving their prison sentences.
The Indictment is the result of an investigation conducted by the Internal Revenue Service/Criminal Investigations. The prosecution is being handled by Assistant U.S. Attorney Norman R. Smith.
To report criminal tax fraud, call IRS Criminal Investigations at (618) 622-2160, or send the information to the Internal Revenue Service, Fresno, CA 93888.
Two Men Charged in Sex Trafficking CaseRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Daniel Tanck, 31, and Robert Palermo, 29, of Rochester, New York, were each charged with the felony of sex trafficking of a minor. Sex trafficking of a minor carries a mandatory minimum penalty of 10 years imprisonment and a maximum penalty of life imprisonment and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee stated that according to the complaint, a fourteen year old victim reported that Tanck and Palermo had placed an ad on Backpage.com for her to engage in prostitution activities. According to the fourteen year old victim, Tanck and Palermo had taken the pictures of her for the Backpage.com ad at their residence on Emerson Street in the City of Rochester and that the two of them posted the advertisement using Tanck’s computer. The victim alleged that both Tanck and Palermo knew that she was fourteen years of age.
The criminal complaint was the culmination of an investigation on the part of the FBI's Cyber Crimes Task Force, which includes the Monroe County Sheriff's Office, under the direction of Sheriff Patrick O'Flynn, the Rochester Police Department under the direction of Chief James Sheppard, and Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Christopher M. Piehota, and the Monroe County District Attorney's Office under the direction of Sandra Doorley.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Two Former Roxbury Correctional Officers Plead Guiltyin Connection with Assault of an InmateRead the Press Release
Walter Scott Steele, a former correctional officer at Roxbury Correctional Institution (RCI), and Lanny Harris, a former correction sergeant at RCI in Hagerstown, Md., pleaded guilty today in relation to assaults against an inmate on March 9, 2008. Harris pleaded guilty to conspiring with other RCI officers to assault an inmate at the state prison on March 9, 2008. Steele pleaded guilty to conspiring with RCI officers to obstruct the investigation into an assault against an inmate on March 9, 2008, and to making a false statement to an FBI agent investigating the assault. With these pleas, five former RCI correctional officers have pleaded guilty and 10 others face charges.
According to court documents filed in connection with his guilty plea, Steele admitted that, during the midnight shift on March 8-9, 2008, he heard RCI officers discuss assaulting the inmate, identified in court documents only as “K.D.,” in retaliation for K.D.’s prior assault of another officer. Steele warned the group that they would get caught if they assaulted the inmate.
Additionally, according to court documents filed in connection with his guilty plea, Harris and other officers met at RCI during the midnight shift and agreed to assault K.D. in retaliation for a prior incident involving the inmate and another officer. Harris admitted that he and three other correctional officers then entered K.D.’s cell in order to assault inmate K.D., while a fourth officer watched. Officers then assaulted K.D. while Steele watched.
Steele admitted that he later learned that officers from the midnight shift were meeting at a McDonald’s restaurant to talk about the assault on inmate K.D. Steele acknowledged meeting Harris and other RCI officers who had been involved in the assault, and discussing what they were going to say to investigators. Steele agreed to tell investigators that he did not know about an assault on inmate K.D.
Steele admitted in court that he lied to federal investigators on Feb. 12, 2013, by falsely denying that he had discussed K.D. with other RCI officers from the midnight shift. Steele also acknowledged that he failed to tell federal investigators that he had seen other officers assault K.D.
“Mr. Harris admitted today that, as a supervisor, he conspired with other officers to assault an inmate in order to punish the inmate for hitting an officer. Mr. Steele, meanwhile, has admitted that, after he watched his fellow correctional officers use force to punish the inmate, he then agreed to help those officers cover up their misconduct,” said Roy L. Austin Jr., Deputy Assistant Attorney General for the Civil Rights Division. “The Justice Department will continue to vigorously prosecute officers who use their official position to abuse inmates or to cover up crimes committed by other officers.”
Steele faces a maximum penalty of 10 years in prison. Harris faces a maximum penalty of five years in prison. Sentencing for Steele is set for July 9, 2013, and sentencing for Harris is set for Aug. 2, 2013, both before U.S. District Judge James K. Bredar.
The investigation by the Frederick Resident Agency of the FBI is ongoing. The case is being prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Sanjay Patel of the Civil Rights Division of the Department of Justice, with the assistance of Michael Cunningham of the U.S. Attorney’s Office for the District of Maryland.
Two Aliens Sentenced for Illegal ReentryRead the Press Release
JAIRO MAURICIO SAGASTUME-ALVARENGA, age 29, a citizen of Honduras, and WALTER ANDRES RAMIREZ, age 30, a citizen of El Salvador, were each sentenced today in federal court by U. S. District Judge Eldon E. Fallon, announced U.S. Attorney Dana Boente. SAGASTUME was sentenced to thirty-six (36) months imprisonment and RAMIREZ was sentenced to twenty (20) months imprisonment. In addition to the term of imprisonment, Judge Fallon ordered that SAGASTUME and RAMIREZ be placed on three (3) years of supervised release following their terms of imprisonment during which time the defendants will be under federal supervision and risk an additional term of imprisonment should they violate any terms of supervised release.
According to court documents, on November 1, 2012, SAGASTUME and RAMIREZ each pled guilty to separate one-count indictments admitting they were aliens who were previously removed and were knowingly and unlawfully found in the United States, in Jefferson Parish, Louisiana without the Attorney General or Secretary of the Department of Homeland Security, having expressly consented to their re-application for admission into the United States. Both defendants’ sentences were subject to enhancement based on previous aggravated felony convictions.
This case was investigated by United States Immigration and Customs Enforcement, Enforcement and Removal Operations. The case was prosecuted by Special Assistant United States Attorney Robert Weir.
Three Sentenced to Federal Prison for Straw Purchasing Firearms Destined for MexicoRead the Press Release
In San Antonio, three individuals were sentenced to lengthy federal prison terms in connection with a scheme to traffic and straw purchase AK-47 assault–type firearms destined for Mexico stated United States Attorney Robert Pitman, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Melvin D. King and Homeland Security Investigations (HSI) Special Agent in Charge Vincent Iglio.
This morning, United States District Judge Orlando Garcia sentenced the ringleader, 28–year-old Mexican National Jimmy Torres, to 15 years in federal prison after pleading guilty in November to one count of possession of a firearm by an individual with a domestic violence conviction, one count of possession of a firearm by an illegal alien and 31 counts of aiding and abetting the making of a false statement during the purchase of a firearm. Judge Garcia also sentenced Torres’ co-defendants--30–year-old Ramon Ernesto Armijo of San Antonio and 27-year-old Mathew Arteaga of San Antonio and--to 60 months and 50 months in federal prison, respectively, after pleading guilty to multiple counts of making a false statement during the purchase of a firearm. During today’s hearing, Judge Garcia also sentenced 25-year-old Juanita Arteaga and 39–year-old Virginia Ricarte-Jones each to two years probation after they pleaded guilty last September to making false statements during the purchase of a firearm.
By pleading guilty, the defendants admitted to participating in a scheme from November 2011 to January 2012 whereby approximately 40 AK-47 assault-type firearms were straw-purchased from several San Antonio area gun stores. Court documents reveal that the straw-purchased firearms were destined for Mexico.
Prior to today, 13 other individuals have received sentences ranging from probation to five years in federal prison in connection with this scheme.
This case was investigated by agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) together with Homeland Security Investigations (HSI). Assistant United States Attorney Bettina J. Richardson is prosecuting this case on behalf of the government.Three Florida Men Indicted for Conspiracy to Illegally Transport Destructive Devices and Machine GunsRead the Press Release
JAIME JAUREGUI (age 34 of Orlando, FL), RUBEN JAUREGUI (age 24 of Dade City, FL), and FRANCISCO MALDONADO (age 46 of Dade City, FL), were charged in a two-count indictment by a Federal Grand Jury for their roles in a conspiracy to transport destructive devices (M-60 Grenades) and machine guns (AK-47 automatic assault rifles and Colt M-4 automatic assault rifles) in violation of Title 18, United States Code, Sections 371 and 922(a)(4), announced U.S. Attorney Dana J. Boente.
According to the indictment, JAIME JAUREGUI, RUBEN JAUREGUI, and FRANCISCO MALDONADO conspired with each other and others to transport firearms, which are deemed destructive devices and machineguns, including thirty M-60 Grenades, and sixty Colt M4 automatic assault rifles and fifty AK-47 automatic assault rifles from the Eastern District of Louisiana to Texas, Florida, and elsewhere. The conspiracy count alleges that on four occasions from January 2012 through March 21, 2013, JAIME JAUREGUI met with undercover agents in St. Tammany Parish to negotiate the purchase more than 100 fully automatic assault rifles, grenade launchers, grenades, and night vision goggles, some of which were destined for a Mexican drug trafficking cartel. JAIME JAUREGUI provided a cash deposit of approximately $46,000.00 during those meetings. JAIME JAUREGUI hired FRANCISCO MALDONADO, AND RUBEN JAUREGUI to assist him with transporting the weapons to the final destinations. None of the men have federal firearms or export licenses. JAIME JAUREGUI is also charged with one count of illegal possession of unregistered firearms, specifically, two Colt M4 automatic assault rifles.
If convicted of the conspiracy count, each defendant faces a maximum penalty of five (5) years imprisonment, a $250,000 fine, and a three (3) year term of supervised release. JAIME JAUREGUI faces additional penalties for the illegal firearms possession charge of up to ten (10) years imprisonment, a $250,000 fine, and a three (3) year term of supervised release.
U. S. Attorney Boente reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being investigated by Special Agents of Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of U.S. Customs and Border Protection, the Louisiana State Police, and the St. Tammany Parish Sheriff’s Office. Prosecution is being handled by Special Assistant United States Attorney Robert Weir.