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3 April 2013
Battlefield Man Indicted for $785,200 Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Battlefield, Mo., man has been indicted by a federal grand jury for a $785,200 scheme to defraud his employer.
Travis E. Honaker, 35, of Battlefield, was charged in a 25-count indictment returned by a federal grand jury in Springfield on Tuesday, April 2, 2013.
The federal indictment alleges that Honaker engaged in a scheme to defraud his employer, Success Leasing, Inc. (or its affiliated company Prime, Inc.), in Springfield, by causing 109 wire transfers totaling $785,200 to be made to his bank accounts from the sale of used vehicles and equipment between August 2007 and December 2011.
Honaker is charged with 12 counts of wire fraud and 13 counts of money laundering.
According to the indictment, Honaker worked for Success Leasing and Pedigree Truck Sales, affiliated companies of Prime. He sold used equipment, including auxiliary power units (APUs) and used trucks that had previously been leased by Success to others. After the lease period expired and the trucks and equipment were returned to the company, Honaker was tasked with managing their sale to others.
Honaker allegedly began charging unauthorized “finder’s fees” or deposits to purchasers of Success’s used trucks in August 2007. Honaker was not authorized to charge finder’s fees or deposits. He never informed Success that he was collecting a finder’s fee or deposit for the trucks he was selling, the indictment says, and he did not remit the money back to Success.
Honaker allegedly created T&H Consulting, LLC, in January 2011 for the purpose of receiving these finder’s fees and deposits. According to the indictment, the purchasers wired funds to this account.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney. Gary Milligan. It was investigated by the U.S. Secret Service, IRS-Criminal Investigation and the Springfield, Mo., Police Department.Baltimore Man Sentenced in Mortgage Fraud SchemeRead the Press Release
Lenders, Including Fannie Mae and Freddie Mac, Lost Over $1 Million from Fraudulently Obtained LoansBaltimore, Maryland - U.S. District Judge James K. Bredar sentenced Kenneth Koehler, age 43, of Baltimore, today to 18 months in prison followed by two years of supervised release for conspiracy to commit wire fraud in connection with a mortgage fraud scheme in which fraudulent loans were obtained on six properties, all of which subsequently went into foreclosure. Five of those properties, accounting for over $790,000 in losses, were on the same street - four of them in the same block. Judge Bredar ordered Koehler to pay restitution of $1,007,812.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Inspector General Steve A. Linick of the Federal Housing Finance Agency; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.
From 2004 through 2008, Koehler invested in Baltimore residential real estate. Koehler obtained financing for the purchase and sale of his properties from Worthington Mortgage Group, LLC, a mortgage brokerage company controlled by a former business partner.
According to his guilty plea, beginning in 2006 Koehler conspired with his former business partner to obtain loans for Worthington Mortgage clients under false pretenses. They used Voicebank, a technology employee leasing company that they had previously owned, as a fictitious employer for Worthington borrowers who needed fraudulent verifications of their employment. Voicebank had ceased doing business in 2001. The Voicebank phone number activated a voice mail message accessible to both Koeher and his partner. If called upon by the lender, either Koehler or his partner would verify the employment or income information supplied on the loan application.
Koehler obtained two loans by fraudulently inflating his own monthly income. In 2006, Koehler signed a loan application prepared by his co-conspirator to refinance a loan on property at 229 S. Chapel Street in Baltimore, which falsely stated that Koehler earned $20,000 per month with Voicebank. Both Koehler and the co-conspirator knew that he was self-employed. In 2007 the same false information was submitted on a loan application to purchase property at 2217 Gough Street in Baltimore. Both properties went into foreclosure, resulting in losses of more than $221,000 to lenders, including the Federal National Mortgage Association (Fannie Mae).
In 2007 and 2008, Koehler and his co-conspirator also arranged for another individual to purchase three properties, and for that individual’s brother to purchase a fourth property, all located on S. Chapel Street and all owned by Koehler. In all four cases, Koehler concealed the true purchase price of the properties from the lenders by signing the settlement sheet stating that he had received a substantial down payment from the buyers, when in fact no such payments had occurred. Koehler also kicked back part of the sales proceeds from each loan to the buyers, further reducing the sales price of the property. By concealing the true sales price for the properties, the conspirators manipulated the lenders into funding more than 100% of the purchase price. All four properties went into foreclosure, resulting in losses of more than $686,000 to Fannie Mae and Federal Home Loan Mortgage Association (Freddie Mac).
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 commended the FBI, Federal Housing Finance Agency - Office of Inspector General and U.S. Postal Inspection Service for their investigative work. Mr. Rosenstein thanked Assistant U.S. Attorney Gregory R. Bockin, who prosecuted the case.
Aurora Man Accused of Diverting $225,000 from Construction Contracts for Personal Use, Including Restoring CorvetteRead the Press Release
A nine-count criminal information was filed charging an Aurora, Ohio, man with crimes related to a scheme of at least $225,000 involving construction projects, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.
Robert J. Berryhill, 51, is accused of creating a fictitious company as a way to divert money on construction projects for his own personal use, including the restoration of a vintage Corvette sports car he had purchased, according to the information.
Berryhill, who served as the senior vice president of Carnegie Management and Development Corp. (CMDC) in Westlake, Ohio, is charged with five counts of mail fraud, two counts of wire fraud, and one count each of aggravated identity theft and false personation of an officer or employee of the United States.
“This defendant is accused of abusing the trust of his employer, his colleagues and his customers in an effort to enrich himself,” said Dettelbach. “He is accused of using public contracts as a way to get his Corvette restored and his pockets lined with hundreds of thousands of dollars.”
“Robert Berryhill is accused of creating false businesses, false invoices and ultimately pretending to be an FBI employee, all in a desperate attempt to defraud others out of at least $225,000,” Anthony said. “The FBI remains committed to detecting and stopping those defrauding others.”
Knoxbi Company, LLC, which was managed by CMDC, won the bid to build an FBI office in Knoxville, Tennessee in August 2007. The company used Blaine Construction Company to serve as the on-site general contractor, according to the information.
In March 2009, Indy-Fedreau LLC, which was also managed by CMDC, won the bid to construct an FBI building in Indianapolis. The company used Welty Building Company as the general contractor, according to the information.
At the same time, Berryhill also created a fictitious contractor known as American Excavators Company (AEC) for the purpose of submitting false invoices to divert CMDC monies to his personal use, according to the information.
From August 2008 through September 2009, Berryhill defrauded CMDC, Knoxbi, Indy-Fedreau, Blaine and Welty to obtain money. He did this by creating false invoices in the name of Ore Enterprises – the Pennsylvania company Berryhill hired to restore his vintage Corvette – and then submitted them to Blaine and Welty. Those companies paid the invoices then passed the cost on to Knoxbi and Indy-Fedreau for final payment, according to the information.
Berryhill also created false invoices in the name of AEC that he submitted to Blaine and Welty. Those companies paid AEC and then passed the cost of the invoice to Knoxbi and Indy-Fedreau for final payment, according to the information.
Overall, Berryhill caused an actual loss of at least $225,919.
Berryhill is also accused of falsely pretending to be an FBI employee identified as “W.C.M.” on July 28, 2008, and demanding that Blaine pay an invoice from Ore regarding the construction of an FBI building in Knoxville, according to the information.
The case resulted from an investigation conducted by Federal Bureau of Investigation. The case was handled by Assistant United States Attorney Robert J. Patton.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record (if any), the defendant’s role in the offenses and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Atlantic County, N.J., Man Admits Role in Heroin ConspiracyRead the Press Release
CAMDEN, N.J. – An Atlantic County, N.J., man today admitted his involvement in a scheme to distribute heroin in and through New Jersey, U.S. Attorney Paul J. Fishman announced.
Nassaun Hines, a/k/a “Bubbles,” a/k/a “Nay,” 27, pleaded guilty before U.S. District Judge Joseph H. Rodriguez to a Superseding Information charging him with knowingly and intentionally conspiring to distribute 100 to 400 grams of heroin, and possession of a firearm by a previously convicted felon. Hines was previously indicted for the heroin distribution conspiracy and the possession of the firearm.
According to documents filed in this case and statements made in court:
Beginning in March 2010, FBI special agents and members of the Atlantic County Prosecutor’s Office used wiretaps to intercept telephone conversations between Jamal Reid, Nassaun Hines, and others. The monitored calls and other information revealed that Hines, Reid, and others were distributing large amounts of heroin. During the calls, agents overheard Hines agreeing to deliver heroin to others, agreeing to gather money from others for heroin, and agreeing to purchase heroin. Agents observed Hines meeting with his conspirators on numerous occasions.
Hines acknowledged that between April 2, 2010, and May 15, 2010, he sold quantities of heroin in Atlantic County and conspired with others in connection with his drug trafficking activity. Hines also admitted that he knowingly possessed a firearm on May 15, 2010.
Hines faces a statutory, mandatory, minimum term of five years in prison; a statutory, maximum prison term of 40 years, and a $5 million fine on the conspiracy count and a maximum potential sentence of 10 years in prison and a $250,000 fine on the weapons count. Sentencing is scheduled for July 8, 2013.
Ten people have been charged for their roles in this heroin distribution conspiracy. To date, five individuals have pleaded guilty to conspiracy to distribute heroin, three remain incarcerated pending trial, and two are fugitives. On Feb. 14, 2013, Leroy Farmer, 38, of Pleasantville, and Baseem Taliaferro, 27, of Pleasantville, pleaded guilty to Superseding Informations charging each in connection with their roles in this heroin distribution conspiracy. Farmer’s sentencing is scheduled for May 20, 2013, at 10:00 a.m., and Taliaferro’s sentencing is scheduled for May 23, 2013, at 10:00 a.m., both before Judge Rodriguez. Edward Brown Jr., a/k/a “Eddie Brown, a/k/a “Eddie Cane,” a/k/a “Cane,” and Matthew Palmer, a/k/a “Matt,” a/k/a “White Boy Matt,” a/k/a “White Boy” – remain fugitives.
U.S. Attorney Fishman credited special agents of the FBI's Atlantic City Resident Agency – Safe Streets Task Force, which during the Reid investigation consisted of task force officers from Atlantic County Prosecutor's Office, Atlantic City Police Department, Northfield Police Department and Pleasantville Police Department, under the direction of Acting Special Agent in Charge David Velazquez; and special agents from the Bureau of Alcohol, Tobacco, Firearms & Explosives, under the direction of Special Agent in Charge Thomas J. Cannon in Newark.
The government is represented by Assistant U.S. Attorneys Jason M. Richardson and Alyson M. Oswald of the U.S. Attorney's Office Criminal Division in Camden.
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Defense counsel: Hines: John F. Renner Esq., Marlton, N.J.
Farmer: Justin T. Loughry Esq., Camden
Taliaferro: Paul A. Sarmousakis Esq., Avalon, N.J.Hines Superseding Information
Arbonnie Ellen Seal Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on April 3, 2013, before Chief U.S. District Judge Richard F. Cebull, ARBONNIE ELLEN SEAL, a 50-year-old resident of Billings, was sentenced to a term of:
Prison: 18 months
Special Assessment: $200
Supervised Release: 4 years
SEAL was sentenced in connection with her guilty plea to conspiracy to possess with the intent to distribute methamphetamine and possession with the intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Marcia K. Hurd, the government stated it would have proved at trial the following:
SEAL and another individual came to the attention of law enforcement in Billings when a confidential informant contacted the High Intensity Drug Trafficking Area (HIDTA) Task Force in May 2011 and reported that he/she had been obtaining methamphetamine for the past eight weeks from an individual and redistributing it to the Northern Cheyenne Indian Reservation. The CI reported that he/she got eight balls, then half ounces, then ounces from the individual and would then return to the reservation, break down the methamphetamine into smaller amounts and redistribute it. The CI brought back one pound of methamphetamine from Washington to the individual in Montana.
A second CI agreed to purchase methamphetamine from SEAL in late August 2011. The CI had been purchasing methamphetamine in the amount of a quarter gram a day for the last 3 months from SEAL. The CI went to SEAL's house on August 24, but she was not home. The CI texted SEAL and asked where she was, SEAL replied that she was at the other individual's home. Law enforcement believed that the individual was SEAL's source of supply and that SEAL had just purchased methamphetamine from the individual to sell to the CI. SEAL was stopped in her car for talking on a cell phone and speeding, and ultimately consented to a search of her car. There were 14.3 grams of methamphetamine found that SEAL had just purchased from the individual, and numerous items of drug paraphernalia. SEAL admitted that she had been getting methamphetamine for redistribution from the individual.
SEAL and the individual conspired to distribute at least 50 grams of methamphetamine. The individual distributed methamphetamine to SEAL on August 24, and SEAL possessed it with the intent to distribute it to the CI.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that SEAL will likely serve all of the time imposed by the court. In the federal system, SEAL does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Billings Big Sky Safe Streets Task Force.
Allen Man Indicted for Assault and Aggravated Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that an Allen, South Dakota man has been indicted by a federal grand jury for assault with a knife on February 23, 2013, and for sexual abuse in the spring of 2012.
Curtis Dupris, age 32, was indicted by a federal grand jury on March 19, 2013 for Assault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, and Aggravated Sexual Abuse. Dupris appeared before U.S. Magistrate Judge Veronica L. Duffy on March 22, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to life imprisonment and a $250,000 fine.
The charges are merely accusations and Dupris is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Dupris was remanded to the custody of the U.S. Marshal. A trial date has been set for May 28, 2013.
28 Members of Bronx Drug Trafficking Crew Charged in Manhattan Federal Court with Distributing Heroin and Crack CocaineRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Raymond W. Kelly, the Police Commissioner of the City of New York (“NYPD”), today announced charges against 28 members of the Briggs Avenue Organization, a criminal organization that controls narcotics distribution around the area of 194th Street and Briggs Avenue in the Bronx, New York, for conspiracy to distribute heroin and crack cocaine. The Indictment, which was unsealed today, also charges ten of the defendants with firearms offenses.
Of the 28 defendants named in the Indictment, 16 were taken into custody as part of a coordinated operation involving federal, state, and local law enforcement officers. Four of the remaining defendants are in state custody on other charges, two are in federal custody, and six are at large. The defendants who were taken into custody today were presented and arraigned in Manhattan federal court this afternoon before U.S. Magistrate Judge Kevin Nathaniel Fox. U.S. District Judge Shira A. Scheindlin is assigned to the case.
Manhattan U.S. Attorney Preet Bharara said: “Step-by-step and case-by-case, this Office, along with our law enforcement partners is doing everything within its power to eliminate the scourge of gangs along with the narcotics trafficking and violence that are tools of their trade. Today’s indictment of 28 members of this alleged criminal organization is the latest in our campaign to give the streets of the Southern District back to its residents.”
FBI Assistant Director-in-Charge George Venizelos said: “It is almost axiomatic that where there are drugs there will be guns. Drug trafficking organizations use guns and violence to secure turf and intimidate or eliminate competition. We will continue to work with the Police Department to make the city safer and more secure, and we will do it neighborhood by neighborhood.”
NYPD Commissioner Raymond W. Kelly said: “NYPD officers routinely risk their own lives to improve public safety for New Yorkers, and this investigation of a violent drug trafficking crew is no exception. The subjects in this case possessed and sold assault weapons to police, and used threats of violence to bolster their business of exploiting drug addicts, until the NYPD and federal partners stepped in. I commend the detectives in this case, especially those working undercover, as well as FBI investigators and prosecutors in the U.S. Attorney's office, on their efforts to return peace to law-abiding residents of the Bronx.”
As alleged in the Indictment and other documents filed in Manhattan federal court:
Members of the Briggs Organization have been engaged in the sale of heroin and crack cocaine since 2008. Between May 2012 and March 2013, several NYPD officers, working in an undercover capacity (the “UCs”) made approximately 21 separate purchases of heroin from at least 18 different members of the Briggs Organization. On each of those occasions, members of the Briggs Organization sold heroin to UCs which was branded with one of the Briggs Organization's stamps, including, “Oh Yeah” and “Fugitive.” During the course of this investigation, the UCs purchased over 900 “bundles” of heroin and firearms, including an AK-47 assault rifle and an UZI 9mm machine gun. In the course of the charged conspiracy, members of the drug trafficking organization used firearms, threats of violence and violence to secure and enforce their drug territory.
MARK ALLIE, JOSE VERA, JONATHAN SAMBULA, GUILLERMO ORTIZ, MICHAEL ORTIZ, JAMAINE TAYLOR, RACHEL DIAZ, CHRISTIAN FABRE, DAMON GROOMS, ROBERT HENDERSON, NOEL FELICIANO, JOSE AVILES, JONATHAN MIRABAL, ANDRE CUNNINGHAM, HARANAKK DINGLE, LUIS GUZMAN, ZOA BRIGGS, ROBERT TORRES, DARNELL HOPKINS, JELFREY GUTIERREZ, JASON LEWIS, MAX JORDAN, EDWARD ALEXIS MEDRANO, LUZ FIGUEROA, FNU LNU, a/k/a “Kat,” MICHAEL McDUFFIE, and DAVID WILSON, are charged with conspiring to distribute and possessing with intent to distribute heroin and crack cocaine.
ALLIE, SAMBULA, ORTIZ, TAYLOR, GROOMS, CUNNINGHAM, JORDAN, FIGUEROA, FNU LNU, a/k/a “Kat,” are also charged with possessing, brandishing and discharging firearms in connection with the drug crimes.
STEVE RAMSNAMY is charged with being a felon in possession of a firearm, specifically an AK-47 assault rifle.
A chart containing the ages, residency information, and charges against the defendants, as well as the maximum penalties they face is attached.
Mr. Bharara praised the outstanding investigative work of the FBI and the NYPD. He added that the investigation is continuing.
The prosecution of this case is being overseen by the Office’s Violent Crimes Unit. Assistant United States Attorneys Jessica Ortiz and Jessica Masella are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Click here to view chart(s)
U.S. v. Allie, Mark et al. Indictment
12 Defendants Charged with Federal Crimes for Stolen Identity Tax Fraud SchemeRead the Press Release
Law Enforcement Officers Arrest 23 on Federal and State Charges
STATESBORO, GA: The federal grand jury sitting in Savannah, Georgia returned six indictments yesterday charging 12 defendants with 115 violations of federal law involving fraudulent tax returns. The federal crimes charged in these indictments range from a conspiracy to defraud the Internal Revenue Service to identity theft from medical records. All of these indictments allege that the defendants illicitly obtained personal identifiers, such as names, dates of birth, and Social Security numbers, and used these means of identification to prepare and submit fraudulent tax returns in order to obtain tax refunds which were then converted to the defendants’ use.
Based on these federal charges and related state crimes, law enforcement officials are arresting 21 individuals today in Georgia, one defendant in Ohio, and one defendant in Florida, who are listed below. These arrests are part of the same long-term investigation which led to multiple search warrants being executed in Statesboro, Georgia in September 2012. Initial federal court appearances for the federally indicted defendants who were arrested in Statesboro, Georgia are scheduled for April 4, 2013 in Savannah, Georgia.
United States Attorney Edward J. Tarver said, “These indictments and arrests demonstrate the commitment of the United States Attorney’s Office to protecting the privacy of medical records and the hard-earned money of honest taxpayers. While April 15th is traditionally seen as the end of tax season, this investigation is ongoing. Our law enforcement partners will continue to trace electronically-filed fraudulent tax returns to track down these identity thieves and put them in handcuffs.”
IRS Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot said, “Today's announcement exemplifies IRS Criminal Investigation's intense focus and rigorous pursuit of perpetrators of identity theft and refund fraud. IRS is extremely grateful for the cooperation and assistance we have received from our partners at the local, state and federal level. Be assured that IRS Criminal Investigation, with our law enforcement partners, will continue to be proactive in the investigation of those individuals who engage in similar behavior.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated, “Today’s extensive joint law enforcement actions resulting in almost two dozen arrests demonstrates the growing problem involving tax refund related fraud and, more importantly, the growing law enforcement response to address it. The FBI will continue to work with its various law enforcement partners, to include providing additional resources, to disrupt such groups engaged in these types of tax fraud activities.”
Statesboro Director of Public Safety Wendell Turner said, “The Statesboro Police Department has been working with our local and federal counterparts to apprehend the persons responsible for defrauding the government and individuals through a variety of criminal schemes. We are very proud of these partnerships and the results they yield for our citizens. This investigation is just another example of everyone working together, sharing resources, information and expertise for the common good of our community.”
If convicted, each federal defendant faces a maximum penalty of twenty years imprisonment for the conspiracy charge, twenty years imprisonment for each count of filing fraudulent tax returns, ten years imprisonment for the charge of misusing medical records, and a two-year mandatory, consecutive prison sentence for each charge of aggravated identity theft. Each of these charges also carries a fine of up to $250,000.
United States Attorney Edward J. Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendants are entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
FBI Special Agent Marcus Kirkland, IRS Special Agent Gwen Weston, and SPD Sgt. James Winskey, assisted by their agencies’ colleagues, are conducting the investigation which led to these indictments and arrests. Also assisting in today’s arrests are the U.S. Secret Service, Georgia Bureau of Investigation, Georgia State Probation Office, and the sheriff’s offices for Bulloch and Richmond counties. Assistant United States Attorneys David Stewart and Lamont A. Belk are the federal prosecutors in these cases. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 341-7842.
List of 12 Federal Defendants with their age and current residence
ERICA BALDWIN, 31, of Statesboro, Georgia
TRACY DENSON, 44, of Statesboro, Georgia
SHAKITA EASON, 30, of Statesboro, Georgia
YOLANDA EDMOND, 36, of Statesboro, Georgia
GLORIA EVANS, 44, of Statesboro, Georgia
JOSHUA MINCEY, 20, of Statesboro, Georgia
PORSCHE PINKNEY, 19, of Augusta, Georgia
DWAN SCOTT, 32, of Statesboro, Georgia
JENNA SCOTT, 28, of Jacksonville, Florida
GREGORY SMITH, 21, of Statesboro, Georgia
TIDAESHA TAYLOR, 27, of College Park, Georgia
ANDREA WEBB, 31,of Register, GeorgiaList of 11 Individuals Arrested on State Warrants with their age and current residence
SANTRAVIS JERROD BROWN, 23, of Statesboro, Georgia
REGINALD RAYNARD ELLISON, 29, of Statesboro, Georgia
SANCHEZ ORTEGA HARDEN, 28, of Statesboro, Georgia
CHRYSTAL N. HARLIE, 32, of Statesboro, Georgia
VICTORIA QUINN JOHNSON (BALDWIN), 28, of Statesboro, Georgia
SEAN LEE, 34, of Statesboro, Georgia
MYRON KELSEY RAWLS, 30, of Statesboro, Georgia
VERA RICHMOND, 69, of Statesboro, Georgia
LANIKA LOYONDA WALDEN (MINCEY), 37, of Statesboro, Georgia
MELISSA SHANTEL WHITFIELD, 33, of Statesboro, Georgia
LASHARETT GENET WILKERSON, 30, of Statesboro, Georgia
2 April 2013
White Horse Man Sentenced on Assault ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that a White Horse, South Dakota man convicted of Assault Resulting in Serious Bodily Injury was sentenced on April 1, 2013 by U.S. District Judge Roberto A. Lange.
Cliff Marshall, Jr., age 35, was sentenced to 15 months imprisonment, 18 months of supervised release and a $100 special assessment. The court ordered that the issue of restitution remain open for 60 days. A restitution hearing will be set within 90 days to resolve any potential restitution amounts.
Marshall was indicted by a federal grand jury in August of 2012. He plead guilty to the Indictment on January 9, 2013.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy Morley prosecuted the case.
Marshall was immediately turned over to the custody of the U.S. Marshal to begin serving his sentence.
Waterbury Man Admits Role in Meth Distribution RingRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that KEVIN WALLIN, 61, of Waterbury, pleaded guilty today before Senior United States District Judge Alfred V. Covello in Hartford to one count of conspiracy to distribute 500 grams or more of a mixture and substance containing methamphetamine (“meth”).
According to court documents and statements made in court, this matter stems from a joint investigation by the Drug Enforcement Administration and the Connecticut State Police’s Statewide Narcotics Task Force. The investigation, which included the use of court-authorized wiretaps, controlled purchases of meth, physical surveillance and the use of an undercover officer, revealed that WALLIN received shipments of meth from individuals in California on consignment with the understanding that he would pay his sources with proceeds generated by his distribution of the drug. After receiving the shipments of meth, he distributed the drug to other dealers and sold it to his own customers.
On six occasions between September 2012 and January 2013, WALLIN sold meth to the undercover officer.
In pleading guilty, WALLIN admitted that he received and distributed 1.7 kilograms of meth.
Judge Covello has scheduled sentencing for June 25, 2013, at which time WALLIN faces a maximum term of imprisonment of life and a fine of up to $10 million.
WALLIN has been detained since his arrest on January 3, 2013. A court-authorized search of WALLIN’s residence on that date revealed meth, drug paraphernalia and drug packaging materials.
Four other individuals have been charged as a result of this investigation and are currently awaiting trial. As to these defendants, U.S. Attorney Fein stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being prosecuted by Assistant United States Attorneys Patrick Caruso and H. Gordon Hall.
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Tom Carson
(203) 821-3722 [email protected]Washington Man Indicted on Federal Hate Crime Charge Related to Racially-motivated AssaultRead the Press Release
The Department of Justice today announced that a federal grand jury sitting in Seattle has indicted Jamie Larson, 49, on a federal hate crime charge relating to a racially-motivated assault of a 50-year-old Sikh man.
Larson has been charged with one count of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act that was enacted in October 2009. The indictment alleges that on Oct. 17, 2012, the subject assaulted the victim, based upon the victim’s actual and perceived race, color and national origin, which included Middle Eastern and Arab descent. The defendant was arrested at the scene of the attack after a witness called 911.
The charge carries a statutory maximum of 10 years in prison.
The Shepard-Byrd law criminalizes acts of physical violence causing bodily injury motivated by any person’s actual or perceived race, color, national origin, religion, sexual orientation, gender, gender identity or disability.
The matter is being investigated by the Seattle Division of the FBI. The case is being prosecuted by Assistant U.S. Attorney Bruce F. Miyake of the U.S. Attorney’s Office for the Western District of Washington and Trial Attorney Nicholas Durham of the U.S. Department of Justice’s Civil Rights Division.
An indictment is merely an accusation, and the subject is presumed innocent unless proven guilty.
Washington Man Indicted on Federal Hate Crime Charge Related to Racially-Motivated AssaultRead the Press Release
WASHINGTON – The Department of Justice today announced that a federal grand jury sitting in Seattle has indicted Jamie Larson, 49, on a federal hate crime charge relating to a racially-motivated assault of a 50-year-old Sikh man.
“Attacks such as this one, based on prejudice and racial hate, are contrary to who we are and violate the law,” said U.S. Attorney Jenny A. Durkan. “Protecting the civil rights of all the members of our community is a top priority for our office.”
Jamie Larson has been charged with one count of violating the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act that was enacted in October 2009. The indictment alleges that on Oct. 17, 2012, the subject assaulted the victim, based upon the victim’s actual and perceived race, color and national origin, which included Middle Eastern and Arab descent. The defendant was arrested at the scene of the attack after a witness called 911.
Larson will appear in U.S. District Court in Seattle at 1:30 today.
The charge carries a statutory maximum of 10 years in prison.
The Shepard-Byrd law criminalizes acts of physical violence causing bodily injury motivated by any person’s actual or perceived race, color, national origin, religion, sexual orientation, gender, gender identity or disability.
The matter is being investigated by the Seattle Division of the FBI. The case is being prosecuted by Assistant U.S. Attorney Bruce F. Miyake of the U.S. Attorney’s Office for the Western District of Washington and Trial Attorney Nicholas Durham of the U.S. Department of Justice’s Civil Rights Division.
An indictment is merely an accusation, and the subject is presumed innocent unless proven guilty.
Vice President of Frederick Mail Preparation Service Pleads Guilty to Fraud Resulting in Losses of over $628,500Read the Press Release
Majority of Victims Were Non-Profit Clients Who Relied on the Mailings to Raise FundsBaltimore, Maryland – Stephen Reid, age 50, of Frederick, Maryland, pleaded guilty today to conspiracy to commit mail and wire fraud relating to the failure to provide contracted-for services to clients of Reid’s company, RMS Direct, Inc., resulting in losses of over $628,500.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.
“In addition to defrauding postal customers, this scheme jeopardized the reputation of the U.S. Postal Service with its customers,” said Gary Barksdale, Inspector in Charge, Washington Division, U.S. Postal Inspection Service. Mr. Barksdale continued, “Through investigations such as this, postal inspectors will continue to protect postal customers and ensure thePostalService retains its reputation as the most trusted government agency.”
According to his plea agreement, Reid was the vice president and part-owner of RMS Direct, Inc., a mail preparation service located in Frederick, Maryland, with over 200 clients and revenues of over $5 million per year. Under the supervision of Reid and his co-conspirator, RMS entered into contracts to prepare and submit to the U.S. Postal Service (USPS), large-volume mailings, typically made up of pamphlets, brochures, books, and other printed materials.
RMS clients were primarily non-profit corporations that relied upon the mailings sent through RMS to raise funds, and the timing of the mailings was essential to their fundraising efforts. RMS assembled the mailings, applied the postage and addresses, and organized the pieces of mail for submission to the USPS. RMS submitted the mailings to a full-time USPS Acceptance Clerk that was assigned to its office. As proof that the mailings went out, RMS then emailed its clients either of two USPS documents – a postage statement signed and certified by the USPS Acceptance Clerk or a Mailing Transaction Receipt printed from an online USPS database. Both documents included information as to the dates, times, number of pieces of mail and postage paid. Once the RMS client received a statement, it would remit payment to RMS.
Reid admitted that the conspiracy began in 2005, when he and his co-conspirator falsified postage statements to misrepresent to RMS clients that mailings were being sent out in a timely fashion when, in fact, the mailings were late. Beginning in 2009, Reid and his co-conspirator selected certain mailings or portions of mailings that would not be submitted at all to USPS for delivery. Reid and his co-conspirator made sure that the documentation sent to the RMS client was falsified to indicate that the full mailing had been submitted, thereby causing the client to overpay RMS for postage and services.
To accomplish the fraud, Reid, his co-conspirator, and RMS employees operating at their direction, generated false postage statements, forged the signature of the USPS Acceptance Clerk and created a false impression of the special USPS date stamp used on the postage statement. In 2006, RMS employees made an unauthorized copy of the USPS Acceptance Clerk’s key to the filing cabinet where the official date stamp was kept. From that time until 2010, Reid, his co-conspirator, and RMS employees operating at their direction used the copied key to gain access to the date stamp when the USPS Acceptance Clerk was not present in order to falsify postage statements. Beginning in 2010, when the computer-generated Mailing Transaction Receipt was adopted by the USPS to certify mailings, Reid and his co-conspirator falsified those as well, using a document that had been created, which, when printed, looked identical to the USPS Mailing Transaction Receipt. Reid and his co-conspirator directed RMS employees to use this document to create false Mailing Transaction Receipts, which were then sent to RMS clients as proof of the timely and complete submission of their mailings.
Reid and his co-conspirator took other measures to conceal the fraud and prolong the victimization of RMS clients. For example, RMS clients often included pieces of mail known as “seeds,” in the mailings they provided to RMS. These “seeds” were sent to particular individuals or addresses so that the client could track the timing and appearance of the mailing. Reid’s co-conspirator directed RMS employees to make sure to deliver the “seeds” from the mailings that were going out late or were not otherwise submitted to the USPS, in order to conceal the fraud.
As a result of the scheme, at least 19 victims lost a total of $628,581.48.
Reid faces a maximum sentence of 20 years in prison and a fine of $250,000. As part of his plea agreement, Reid will be required to forfeit $628,581.48. U.S. District Judge Catherine C. Blake scheduled sentencing for July 12, 2013 at 9:00 a.m.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service for its work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Sean C. Marlaire, who is prosecuting the case.
Two Former Executives of Athletic Equipment Company Admit Extensive Fraud on New Jersey SchoolsRead the Press Release
NEWARK, N.J. – The former chief financial officer and chief executive officer of a leading supplier of athletic equipment and reconditioning services today admitted their roles in a conspiracy to defraud schools in New Jersey and elsewhere, U.S. Attorney Paul J. Fishman announced.
Mitchell Kurlander, 54, of Allentown, Pa., and his father-in-law, Alan Abeshaus, 81, of Highland Beach, Fla., each pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to one count of mail and wire fraud conspiracy. They were indicted in May 2011.
“The long-running fraud Kurlander and Abeshaus ran cheated students, teachers and the taxpayers who support them,” U.S. Attorney Fishman said. “Just as offensive is the conduct of school officials who turned a blind eye to the deceit in exchange for cash payoffs and gifts. The admissions of guilt by these two main defendants will help turn a page on this sorry chapter.”
“For years, Circle Systems Group Inc. utilized deceptive business practices to defraud schools throughout New Jersey and the United States for their own personal gain,” FBI Acting Special Agent in Charge David Velazquez said. “These well-orchestrated schemes not only affected the schools they were defrauding, but innocent students and taxpayers as well. The pleas entered today are indicative of the continuing efforts of the FBI and its law enforcement partners to identify and fully investigate complex financial fraud schemes. "
“The corporate executives and the educators who participated in this scheme not only abused their position of trust for personal gain, but did so at the expense of students at schools across the country. That is completely unacceptable,” said William Hamel, Assistant Inspector General for Investigations with the U.S. Department of Education. “I’m proud of the work of OIG Special Agents and our partners in law enforcement for holding these individuals accountable for their selfish and reckless actions.”
According to documents filed in the case and statements made in court:
Circle System Group Inc. (Circle) sold and reconditioned athletic equipment, uniforms, and apparel. Although its services were marketed nationally, a large portion of Circle’s business focused on middle schools, high schools, colleges, and youth sports programs in New Jersey. Circle’s business depended primarily on a sales force that attempted to maintain relationships with the school officials—including athletic directors, equipment managers, trainers, and coaches—who were responsible for purchasing athletic equipment and reconditioning services on behalf of the schools.
From at least 1997 to June 2007, Circle engaged in a number of business practices aimed at defrauding schools, including keeping duplicate payments by schools that should have been returned or credited back to schools, submitting fake quotes to school officials, and submitting fraudulent invoices to schools.
Circle sent invoices and monthly statements of account to schools. Schools often paid both the invoices and statements, paying twice for the same items or services. At the direction of Kurlander and Abeshaus, Circle improperly retained at least $822,000 in overpayments from various schools in New Jersey and elsewhere and converted these overpayments to the personal use and benefit of Abeshaus.
Circle and its sales staff often would provide multiple price quotes, including some that appeared to come from other companies, to allow schools with requirements to obtain multiple price quotes to justify a contract with Circle. Using quote forms with the letterhead of other companies, Circle administrative staff would prepare fake, higher quotes at the direction of Kurlander and others. Circle submitted numerous such fake quotes to schools in New Jersey and elsewhere during the course of the conspiracy.
As a routine business practice, and to ingratiate Circle with school officials, Kurlander authorized Circle employees to make gifts and donations to schools and school officials, and often would take officials on golf outings and to meals. Kurlander routinely inflated Circle’s invoices for services and goods to those schools to reimburse Circle for these donations and gifts. Gifts provided by Circle to school officials included computers, digital cameras, flat-screen TVs, golf clubs, leather jackets and other personal apparel.
Circle sometimes also submitted bid packages and price quotations for goods and reconditioning services that were lower than the prices that Circle intended to charge schools. After Circle obtained a school’s business, Circle would, at Kurlander’s direction, garner its desired profits by fraudulently inflating the quantity or nature of the reconditioning work or by fraudulently inflating other invoices to those schools for reconditioning services.
The conspiracy count to which the defendants pleaded guilty are punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross pecuniary gain or loss from the offense. Sentencing is scheduled for July 9, 2013.
Three other individuals previously pleaded guilty to their involvement in the conspiracy. On Dec. 22, 2008, former Circle president David Drill pleaded guilty to conspiring to defraud, among other Circle customers, various New Jersey schools. Two school officials—former Long Branch High School Athletic Director Charles Ferrara Jr. and former Elizabeth High School official Robert Firestone—pleaded guilty on Nov. 22, 2010, and Jan. 5, 2011, respectively, to participating in the conspiracy. Ferrara and Firestone admitted, among other things, that they received items from Circle for their personal use and directed Circle to fraudulently bill the cost of those items back to their respective schools. All three await sentencing before U.S. District Judge Dickinson R. Debevoise.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velasquez in Newark; and U.S. Department of Education, Office of Inspector General, under the direction of Special Agent in Charge Steven Anderson of the Mid-Atlantic region and Special Agent in Charge Brian Hickey of the Northeastern Region, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Lee M. Cortes Jr. and Senior Litigation Counsel J Fortier Imbert of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
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Defense counsel: Kurlander: William A. DeStefano Esq., Philadelphia
Abeshaus: Kevin H. Marino Esq., Chatham, N.J.Kurlander, Mitchell, Et al. Indictment (Circle Systems)
Tonawada Man Sentenced for Cocaine TraffickingRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Keith Simmons, 35, of Tonawanda, N.Y., who was convicted of cocaine trafficking, was sentenced to eight years in prison by U.S. District Judge Richard J. Arcara.
According to Assistant U.S. Attorney Michael L. McCabe, who handled the case, Simmons managed a drug-trafficking organization in Niagara County and northern Erie County which distributed at least 50 kilograms of cocaine from 2004 to the date of his arrest in July 2009. Simmons and other members of this drug trafficking organization sold cocaine at many locations, including Papa Joe's Restaurant on Niagara Falls Boulevard and J.T. Wheatfield's Bar and Restaurant on Ward Road in Wheatfield.Simmons was among 21 defendants arrested in July of 2009. All have been convicted.
Today's sentencing is the culmination of an investigation on the part of Special Agents from the Federal Bureau of Investigation, under the direction of Christopher M. Piehota, officers from the Niagara County Drug Task Force, under the direction of Sheriff James Votour, the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto the Amherst Police Department, under the direction of Chief John Askey.Three Mexican Nationals Sentenced in Meth Trafficking CaseRead the Press Release
Three Co-defendants Await Sentencing
POCATELLO – Three co-defendants in Eastern Idaho were sentenced in United States District Court yesterday for drug trafficking and related charges, U.S. Attorney Wendy J. Olson announced today. The defendants appeared before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
Juan Aguilar, 60, a Mexican national, formerly residing in San Jose, California, was sentenced to 120 months in federal prison followed by five years of supervised release for possession with intent to distribute in excess of 50 grams of methamphetamine. Aguilar was also ordered to pay a $1,000 fine. He pleaded guilty to the charge on December 19, 2012.
Juan Mendoza, 41, of Menan, Idaho, was sentenced to 102 months in prison followed by five years of supervised release for possession with intent to distribute in excess of 50 grams of methamphetamine. Mendoza was also ordered to pay a $1,000 fine. He pleaded guilty on December 18.
Jose Rios-Jimenez, 62, a Mexican national formerly living in Menan, Idaho, was sentenced to time served – 16 months – for possession of a firearm by a prohibited person and illegal entry of a removed alien. He was ordered to forfeit the handgun he illegally possessed. Rio-Jimenez pleaded guilty to the charges on December 18. He will be subject to deportation.
Three co-defendants have pleaded guilty to related charges and are awaiting sentencing. Raymond Camacho, a/k/a Jesus Mendoza Nunez, 57, a Mexican national, pleaded guilty on January 24, 2013, to possession with intent to distribute in excess of 50 grams of methamphetamine. Douglas I. McAdam, 47, of Pocatello, pleaded guilty on February 11 to possession with intent to distribute in excess of five grams of methamphetamine. Camacho and McAdam are set for sentencing on April 29. Marilyn N. Leones, 42, of Pocatello, pleaded guilty to possession with intent to distribute methamphetamine; she is set for sentencing on May 28. Eldon K. McConnell, 48, of Pocatello, is scheduled for a competency hearing on April 4.
According to the plea agreements, on November 24, 2011, Camacho and Aguilar were in a vehicle stopped by law enforcement officers in Bannock County, Idaho. A search of the vehicle located approximately three pounds of methamphetamine. Forensic analysis later determined the substance contained in excess of 50 grams of actual methamphetamine. Camacho and Aguilar admitted to knowing the methamphetamine was in the vehicle and possessed it with the intention of distributing it to others.
During execution of a search warrant at Mendoza’s residence in Jefferson County, Idaho, law enforcement discovered various controlled substances. Mendoza later admitted that he possessed the methamphetamine intending to distribute it to others and that he had previously distributed methamphetamine in the Pocatello area. During execution of a second search warrant, at Rios-Jimenez’s residence, also in Jefferson County, law enforcement discovered a Hi-Point.380 caliber pistol, which Rios-Jimenez admitted possessing. Authorities also discovered that Rios-Jimenez was illegally in the United States, having been lawfully removed on December 7, 1990.
The case was investigated by Idaho State Police, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and Chubbuck Police Department.
Superceding Indictment Filed, Additional Defendant Charged in Drug ConspiracyRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Rochester has returned a nine count superseding indictment charging an additional defendant and additional crimes in a Rochester area drug conspiracy.
Devin Allen-Furtick, aka “Little Cuz,” 20, is charged with conspiracy to possess with intent to distribute and to distribute 280 or more grams of cocaine base, a quantity of cocaine and a quantity of marijuana. In addition, he is charged with possession with intent to distribute 28 grams or more of cocaine base.
In February 2013, the following defendants were also charged with conspiracy to possess with intent to distribute and to distribute cocaine base, cocaine and marijuana, along with other drug related charges: Tyshawn Simmons, aka “Ty,” 30; Tashaka Mitchum, aka “Sharky,” 22; Marquis McMillian, aka “Dap,” 21; Melvin Hill, aka “Pumpkin,” Franklin Brock Jr., aka “Little Frank,” 19; Franklin Brock Sr., 39; Patrick Christner, 28; Tina McDonald, 40; Schmillion Weaver, 29 and Ciarra Crane, 23. The charge carries a mandatory minimum term of 10 years in prison, a maximum of life, a fine of $10,000,000, or both.
Defendants Simmons, McMillian and Brock are also charged with attempting to kill a person in retaliation for that person’s cooperation in a federal investigation and with unlawfully using a firearm to commit the shooting. These charges carry maximum penalties of 30 years and life in prison, respectively. Marquis McMillian is charged with attempting to kill a second person to prevent that person from testifying in connection with the first shooting. He is also charged with unlawfully using a firearm to commit that second shooting. These charges also carry maximum penalties of 30 years and life in prison, respectively.
Defendants Simmons, Mitchum and McMillian are also charged with unlawfully possessing firearms in furtherance of the drug trafficking conspiracy. The gun charge carries a mandatory minimum of five years in prison, a maximum of life, a fine of $250,000, or both.
Assistant U.S. Attorney Everardo A. Rodriguez, who is handling the case, stated that the addition of Furtick as a defendant and the additional charge against him stem from the continuation of a long-term investigation into the drug trafficking activities in the Rochester area of Simmons and the other charged defendants. The investigation remains ongoing with respect to potential additional charges and additional defendants.
Devin Allen-Furtick was arraigned before Federal Magistrate Judge Marian W. Payson today. He pleaded not guilty to the charges against him. Furtick is being held pending a detention hearing which is scheduled for Friday, April 5 at 2:00 p.m. Defendants Simmons, Mitchum, Brock and McMillan are also detained.
The superseding indictment is the result of an investigation headed by the Rochester Police Department, under the direction of Chief James Sheppard, with assistance from the United States Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division. Other law enforcement agencies assisted in the arrests including the United States Marshal’s Service, under the direction of Marshal Charles Salina and the New York State Division of Parole, under the direction of Charles Bour.
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.
Statement of Manhattan U.S. Attorney Preet Bharara on the Federal Corruption Charges Unsealed Against New York State Senator Malcolm Smith, New York City Council Member Daniel Halloran, and Four OthersRead the Press Release
“Today’s charges demonstrate, once again, that a show-me-the-money culture seems to pervade every level of New York government. The complaint describes an unappetizing smorgasbord of graft and greed involving six officials who together built a corridor of corruption stretching from Queens and the Bronx to Rockland County and all the way up to Albany itself. As alleged, Senator Malcolm Smith tried to bribe his way to a shot at Gracie Mansion – Smith drew up the game plan and Councilman Halloran essentially quarterbacked that drive by finding party chairmen who were wide open to receiving bribes. After the string of public corruption scandals that we have brought to light, many may rightly resign themselves to the sad truth that perhaps the most powerful special interest in politics is self-interest. We will continue pursuing and punishing every corrupt official we find, but the public corruption crisis in New York is more than a prosecutor’s problem.”
U.S. v. Malcolm Smith, et al. Complaint
Ryan James Parker Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on April 1, 2013, before U.S. District Judge Sam E. Haddon, RYAN JAMES PARKER, a 26-year-old resident of Box Elder and an enrolled member of the Rocky Boy's Indian Reservation, was sentenced to a term of:
Prison: 37 months
Special Assessment: $100
Restitution: $3,998
Supervised Release: 3 years
PARKER was sentenced in connection with his guilty plea to involuntary manslaughter.
In an Offer of Proof filed by Assistant U.S. Attorney Danna R. Jackson, the government stated it would have proved at trial the following:
On June 14, 2012, near Box Elder on the Rocky Boy's Indian Reservation, PARKER caused a collision between the vehicle he was driving and another vehicle in which an individual died.
PARKER was intoxicated at the time of the collision. According to tribal law enforcement, PARKER was arrested immediately following the collision and given a Breathalyzer test. The result showed his blood alcohol content was .25. The Airbag Control Module report indicated that PARKER was driving 91 mph at -5 seconds prior to the collision and 63 mph at -2 seconds prior to the collision. The posted speed limit on this area was 35 miles per hour.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that PARKER will likely serve all of the time imposed by the court. In the federal system, PARKER does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by a cooperative effort between the Montana Highway Patrol, the Federal Bureau of Investigation, and the Chippewa Cree Law Enforcement.
Rochester Man Arrested in Connection with Drug and Gun SalesRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Luis Guzman, 23, of Rochester, N.Y., was arrested and charged by criminal complaint with distribution of heroin and possession of a firearm in furtherance of a drug trafficking crime. The firearm charge carries a maximum penalty of life in prison, a fine of $250,000 or both and the drug charge carries a maximum penalty of 20 years in prison, a fine of $1,000,000 or both.
Assistant U.S. Attorney Jennifer M. Noto, who is handling the case, stated that according to the complaint, the defendant sold heroin and firearms during two controlled buys by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Rochester Police Department in December 2012 and January 2013. One of the firearms purchased was a firearm stolen in November 2012 from Tom's Guns and Ammo, a Federal Firearms Licensee located in Sodus, New York.
The complaint is the culmination of an investigation on the part of Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Scott Heagney and the Rochester Police Department, under the direction of Chief James Sheppard.
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.Rapid City Man Pleads Guilty to Failure to RegisterRead the Press Release
United States Attorney Brendan V. Johnson announced that Benjamin Godfrey Chipps Jr., age 33, of Rapid City, South Dakota appeared before U.S. Magistrate Judge Veronica L. Duffy on March 27, 2013 and pled guilty to Failure to Register. The maximum penalty upon conviction is 10 years' imprisonment and/or a $250,000 fine.
Between November 4, 2012 and December 13, 2012, Chipps failed to update his sexual offender registration as required. The investigation was conducted by the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Eric Kelderman.
A presentence investigation was ordered and a sentencing date will be scheduled. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Quad Cities Man Sentenced to 30 Years Imprisonment for Armed Bank RobberyRead the Press Release
DAVENPORT, IA – On April 1, 2013, Eric Martin, age 35, was sentenced to 30 years imprisonment for armed bank robbery, possessing a firearm in furtherance of a crime of violence, and being a felon in possession of a firearm, announced United States Attorney Nicholas A. Klinefeldt. United States District Judge Stephanie M. Rose also sentenced Martin to five years supervised release and ordered Martin to pay $53,369 in restitution to the victim banks.
On April 23, 2012, at approximately 9:30 a.m. Martin entered the Hills Bank and Trust of Iowa City, wearing a mask, and armed with a loaded black, semi-automatic Jiminez Arms 9mm handgun. Martin pointed the gun at the tellers, demanded money from the teller drawers, and took approximately $23,295.00. Martin then fled on a motorized dirt bike, and led law enforcement on a lengthy vehicle pursuit through residential neighborhoods, where he was apprehended with the stolen money and the firearm. During the six months leading up to the robbery, Martin had also robbed the U.S. Bank and the Midwest One Bank in Iowa City in similar fashion.
This case was investigated by the Federal Bureau of Investigation, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Quad Cities Area Man Sentenced to 6 Months Imprisonment and 6 Months Home Confinement for Preparing False AppraisalsRead the Press Release
DAVENPORT, IA – On April 1, 2013, Michael Saad, age 49, was sentenced to 6 months imprisonment followed by 6 months home confinement for willfully overvaluing property for the purpose of influencing a federally insured credit union, announced United States Attorney Nicholas A. Klinefeldt. United States District Judge Stephanie M. Rose also sentenced Saad to two years supervised release, and ordered Saad to pay $131,575.06 in restitution to Deere Harvester Credit Union.
Beginning in April 2007 and continuing until December 2007 Saad knowingly inflated the values of properties that he appraised in an effort to justify higher mortgage loans for borrowers. Saad misrepresented the square footage, age, number of bedrooms, number of bathrooms, and other information associated with the subject properties, and the comparable properties listed in his appraisals.
This case was investigated by the Federal Bureau of Investigation and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Prevea Clinic, Inc. Agrees to Civil Settlement of $94,000.00 to Resolve False Claims Act AllegationsRead the Press Release
United States Attorney James L. Santelle for the Eastern District of Wisconsin announced today that the United States has reached a civil settlement with the Prevea Clinic, Inc., resolving allegations that Prevea submitted false claims to the Medicare Program. The amount of the settlement is $94,000.00.
Prevea provides health care services in northeastern Wisconsin through a group of clinics that employ physicians and other health care providers. The civil settlement resolves a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens with knowledge of fraud to bring a civil action on behalf the United States and to share in any recovery. As part of the resolution, the whistleblowers will receive a share of the settlement.
The qui tam complaint, alleges that Prevea submitted false claims to the Medicare Program for the services of an assistant surgeon during neurosurgery procedures between January 1, 2005 to November 20, 2010. The services of an assistant surgeon will be paid for by Medicare if the assistant surgeon has certain, specified credentials. It was alleged Prevea submitted claims for assistant surgeon services by an employee that did not have the credentials required by Medicare and submitted the claims for those services using another individual’s provider number and credentials. Prevea denied the allegations.
This case was investigated by Special Agents from the Federal Bureau of Investigation and prosecuted by Deputy Civil Division Chief Stacy Gerber Ward.
Pretty Prairie Woman Pleads Guilty to Health Care FraudRead the Press Release
TOPEKA, KAN. – A woman from Pretty Prairie, Kan., who fraudulently received payments from the Kansas Medicaid program to care for her sister with Downs Syndrome has pleaded guilty to federal health care fraud charges, U.S. Attorney Barry Grissom said today.
Lupe Adela Mains, 46, Pretty Prairie, Kan., pleaded guilty to one count of health care fraud and one count of mail fraud. In her plea, she admitted that from Oct. 1, 2007, to March 31, 2009, she received Medicaid funds for providing supportive home care services to her sister even though she had ceased to provide those services. In fact, Mains’ sister was being cared for by another family member in Wichita during that time.
In addition, Mains admitted that she fraudulently continued to collect her sister’s Railroad Retirement Board survivor disability benefits. Mains failed to disclose to the Railroad Retirement Board that her sister was no longer in her care.
Sentencing is set for July 1. The parties have agreed to recommend a sentence of one month incarceration, 13 months community confinement and restitution of $50,242. Grissom commended the Medicaid Fraud And Abuse Division of Kansas Attorney General Derek Schmidt’s office, Special Assistant U.S. Attorney Stefani Hepford and Assistant U.S. Attorney Tanya Treadway for their work on the case.
Presho Man Pleads Guilty to Possession of Firearm ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that Clint Brown, age 36, of Presho, South Dakota appeared before U.S. District Judge Roberto A. Lange on April 1, 2013 and pled guilty to Felon and Drug User 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.
In 2004, Brown had previously been convicted of 3 felony offenses arising out of conduct occurring in Lyman County and Pennington County. On August 17, 2012 Brown was arrested by state authorities and it was determined he possessed two firearms, a 12-gauge shotgun and a 22-caliber rifle. It was also determined that he had been using methamphetamine, and numerous items of drug paraphernalia were found in his Lyman County home. State charges are still pending in Lyman County related to the August 17, 2012 arrest.
The investigation was conducted by the Lyman County Sheriff’s Office, the South Dakota Division of Criminal Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Northern Plains Safe Trails Drug Enforcement Task Force, the South Dakota Forensic Laboratory, the South Dakota Public Health Laboratory, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Timothy M. Maher and Kathryn Rich.
A presentence investigation was ordered and a sentencing date was set for June 12, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Presho Man Pleads Guilty to Firearm ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that Clint Brown, age 36, of Presho, South Dakota appeared before U.S. District Judge Roberto A. Lange on April 1, 2013 and pled guilty to Felon and Drug User 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.
In 2004, Brown had previously been convicted of 3 felony offenses arising out of conduct occurring in Lyman County and Pennington County. On August 17, 2012 Brown was arrested by state authorities and it was determined he possessed two firearms, a 12-gauge shotgun and a 22-caliber rifle. It was also determined that he had been using methamphetamine, and numerous items of drug paraphernalia were found in his Lyman County home. State charges are still pending in Lyman County related to the August 17, 2012 arrest.
The investigation was conducted by the Lyman County Sheriff’s Office, the South Dakota Division of Criminal Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Northern Plains Safe Trails Drug Enforcement Task Force, the South Dakota Forensic Laboratory, the South Dakota Public Health Laboratory, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Timothy M. Maher and Kathryn Rich.
A presentence investigation was ordered and a sentencing date was set for June 12, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Pittsburgh Man Charged with Escape from Federal CustodyRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh has been indicted by a federal grand jury in Pittsburgh on a charge of escape from custody, United States Attorney David J. Hickton announced today.
The one-count indictment named Alfonso Evans, 23, of Pittsburgh, as the sole defendant.
According to the indictment, Evans escaped from federal custody on Sept. 29, 2012.
The law provides for a maximum total sentence of not more than five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the United States Marshals Service conducted the investigation that led to the prosecution of Alfonso Evans.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pine Ridge Man Pleads Guilty to Felon in Possession of A FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that Daniel Thomas, age 30, of Pine Ridge, South appeared before U.S. Magistrate Judge Veronica L. Duffy on March 27, 2013 and pled guilty to Felon in Possession of a Firearm. The maximum penalty upon conviction is 10 years' imprisonment and/or a $250,000 fine.
On July 23, 2012 at Red Shirt, Thomas, a previously convicted felon, illegally possessed a Colt Cobra .38 caliber revolver. The investigation was conducted by the Bureau of Indian Affairs Office of Justice Services and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant U.S. Attorney Eric Kelderman.
A presentence investigation was ordered and a sentencing date will be scheduled. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Pho Danh Restaurant Owner Pleads Guilty to Filing False Tax ReturnRead the Press Release
HOUSTON – Danh Ngoc Nguyen, co-owner of Pho Danh Restaurant in Houston, has entered a plea of guilty to filing of a false federal income tax return, United States Attorney Kenneth Magidson announced today along with Lucy Cruz, special agent in charge of Internal Revenue Service - Criminal Investigation (IRS-CI). The plea was entered late yesterday.
Nguyen co-owned and operated a Pho Danh Restaurant at 11209 Bellaire Boulevard in Houston during 2003 through 2006. Nguyen admitted in the plea agreement to filing false federal income tax returns for the restaurant and for himself for each of those years that understated both the income of the restaurant and his personal income from the restaurant by approximately $240,356. As part of his plea, Nguyen has agreed to make full restitution to the Internal Revenue Service (IRS) estimated to be at least $526,157 and to remain subject to additional IRS assessments of taxes, interest and penalties due as result of these offenses.
U.S. District Judge Lynn N. Hughes set a sentencing date of April 1, 2014, at which time Nguyen faces up to three years imprisonment and a criminal fine of up to $250,000.
IRS-CI investigated and Assistant United States Attorney Jimmy Sledge Jr. is prosecuting the case.
Patient Recruiter for Miami Home Health Company Sentenced to 36 Months in $20 Million Health Care Fraud SchemeRead the Press Release
A patient recruiter for a Miami health care company was sentenced yesterday to serve 36 months in prison for his participation in a $20 million home health Medicare fraud scheme, 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 Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami Office.
Vladimir Jimenez, 43, was sentenced by U.S. District Judge Joan A. Lenard in the Southern District of Florida. In addition to his prison term, Jimenez was sentenced to serve two years of supervised release and ordered to pay $950,000 in restitution, jointly and severally with co-defendants.
In January 2013, Jimenez pleaded guilty to one count of conspiracy to receive health care kickbacks.
According to court documents, Vladimir Jimenez was a patient recruiter who worked for Serendipity Home Health, a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries.
According to court documents, from approximately April 2007 through approximately March 2009, Jimenez recruited patients for Serendipity, and in doing so solicited and received kickbacks and bribes from the owners and operators of Serendipity in return for allowing Serendipity to bill the Medicare program on behalf of the patients Jimenez had recruited. These Medicare beneficiaries were billed for home health care and therapy services that were medically unnecessary and/or not provided.
From approximately January 2006 through March 2009, Serendipity submitted approximately $20 million in claims for home health services that were not medically necessary and/or not provided. Medicare actually paid approximately $14 million for these fraudulent claims.
As a result of Jimenez’s participation in the illegal scheme, the Medicare program was fraudulently billed more than $400,000 for purported home health care services.
In a related case, on June 21, 2012, Ariel Rodriguez and Reynaldo Navarro, the owners and operators of Serendipity, were sentenced to 73 and 74 months in prison, respectively, following guilty pleas in March 2012 to one count each of conspiracy to commit health care fraud.
This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section. The case was investigated by the FBI and HHS-OIG, and was brought as part of 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.
Owner of Miami-Dade Wholesale Distributing Company Sentenced in Tax Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), announced that defendant David Bradman, 54, of Miami, was sentenced yesterday afternoon to 12 months and 1 day in prison, to be followed by 1 year of supervised release for his role in a tax fraud scheme. The court also ordered Bradman to perform 200 hours of community service during supervised release. A restitution hearing is scheduled for June 3, 2013. Bradman had previously pled guilty to one count of making false income tax returns for an S Corporation, Forms 1120S, in violation of Title 26 U.S.C § 7206(1) for tax year 2005.
According to statements made in court and documents filed in the case, Bradman was the sole owner and operator of Diplomat Trading, Inc., in Miami, Florida. The company was a wholesale distributor of consumer electronics that exported merchandise to Latin America. In 2000, a scheme was devised in which the defendant and others set up a Panamanian corporation, CHF Electronics (CHF), and opened a bank account in the company’s name in Panama. Thereafter, on October 20, 2002, a false note was created to make it appear as though Diplomat Trading had borrowed $6,301,008.16 from CHF Electronics. The note was signed by Bradman. Checks representing purported payments on this note were sent from Diplomat Trading to CHF Electronics. Bradman inflated the amounts listed as mortgages, notes and bonds payable, and the corresponding interest deductions, in his tax returns for his S Corporation, Forms 1120S, in the name of Diplomat Trading, Inc. Bradman created the illusion of a bona fide commercial business relationship between Diplomat Trading and CHF Electronics. In fact, however, Bradman controlled both Diplomat Trading and CHF Electronics, and knew that these two companies did not have a genuine commercial business relationship.
In addition, according to documents filed with the court, Bradman used CHF Electronics to cycle money for his personal use. In 2005, Bradman had a second company, MDA Inversiones, incorporated in Panama. Approximately $700,000 was moved from CHF’s bank account in Panama to a Panamanian bank account for MDA Inversiones. A majority of those funds were then wired to the United States so that Bradman could purchase two properties in Miami, Florida.
Mr. Ferrer commended the investigative efforts of the Internal Revenue Service, Criminal Investigation Division. This case is being prosecuted by Assistant U.S. Attorney Lois Foster-Steers.
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.
Navajo Man Sentenced to 180 Months Imprisonment for Sexual AbuseRead the Press Release
PHOENIX – On April 1, 2013, Kelbert Jay Nez, 22, of Leupp, Ariz., was sentenced by U.S. District Judge G. Murray Snowto 180 months imprisonment. Nez pleaded guilty to sexual abuse.
Nez was charged by indictment with two counts of aggravated sexual abuse of a minor, pursuant to 18 U.S.C. § 2241(c) and one count of sexual abuse, pursuant to pursuant to 18 U.S.C. § 2242(2). The charges in the indictment addressed the sexual abuse of two minor victims, ages 10 and 13 at the time of the abuse. The offense occurred on the Navajo Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution is being handled by Cassie Bray Woo, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-12-8103-PCT-GMS
RELEASE NUMBER: 2013-026_NezFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Nashville Woman Admits Theft of $360,000 in Federal Grant Funds Intended to Aid VeteransRead the Press Release
Birdie Anderson, 54, of Nashville, Tennessee, pleaded guilty yesterday in federal court to charges that she made false statements to the Department of Veterans Affairs (VA) to obtain an $80,000 federal grant and that she had converted over $280,000 in additional VA grant funds, for her own personal use, announced Jerry E. Martin, U.S. Attorney for the Middle District of Tennessee.
Anderson admitted that during 2007 and 2008 she made false representations when applying for a federal grant that provided money for a mortgage and for the purchase of real property that would be used to house indigent veterans. She admitted that she pocketed around $25,000 of the $80,600 in cash that the VA gave her to buy the property. Anderson subsequently failed to make the mortgage payments, which resulted in foreclosure and loss of the property as a source of veteran housing.
Anderson further admitted to receiving an additional $280,000 in VA grant funds between 2008 and 2013, by representing that she would use the money to purchase a specialty van to provide transportation for indigent veterans, and an apartment building for additional veteran housing. However, she never purchased either. The funds were electronically deposited into Anderson’s bank account, but are no longer there.
“This egregious fraud inflicted a significant double injury to tax payers in general, and to veterans specifically,” said U.S. Attorney Jerry E. Martin. “Fraud and abuse of any federal program is harmful, particularly given the current funding crisis that the United States faces. Program fraud is even more damaging when the programs affected are designed to help our needy veterans. The taxpayers’ money that Anderson fraudulently obtained in this case is gone, so it will provide no benefit to the veterans it was intended for. We will ask the court to impose a sentence that accurately reflects the harm that this defendant inflicted.”
“The VA- Office of Inspector General is dedicated to aggressively investigating thefts of funds from VA programs, including those established to assist homeless veterans,” added Quentin G. Aucoin, Special Agent in Charge of the VA- Office of Inspector General.
During the investigation, Anderson claimed that she still had the money, which was in a safe in New Hampshire. Despite that claim, Anderson has refused demands from the VA to return the money and has since formally withdrawn from participation in the grant programs for which the funds were provided.The charges carry a combined maximum of 15 years in prison, fines of up to $500,000, and forfeiture of any money or substitute property that Anderson possesses, up to the amount or value of the VA funds that she misappropriated.
United States District Judge Todd J. Cambpell has set sentencing for June 17, 2013.
The case was investigated by the VA- Office of Inspector General. The government is represented by Assistant U.S. Attorney Hilliard Hester.Multi-Jurisdiction Operation Nets Nine Arrests for Alleged Methamphetamine Related CrimesRead the Press Release
United States Attorney Danny C. Williams, Sr., announced today that a federal Grand Jury returned Indictments against two individuals for Conspiracy and Possession of More Than 500 Grams of Methamphetamine With Intent to Distribute.
The Indictments named Gonzalo Ponce-Arturez, age 35, from Austin, Texas, and Raven Frederick-Holmes, age 31, from Tulsa, Oklahoma, as defendants. If convicted, each defendant faces a sentence of not less than 10 years and up to life imprisonment. Parole has been abolished in the Federal system.
The charges are the result of a multi-jurisdictional operation that included contributions from agents and officers associated with the Cherokee Nation Marshals Service, Rogers County District Attorney’s Office Investigators, Catoosa Police Department, Rogers County Sheriff’s Office, Federal Bureau of Investigation, Drug Enforcement Administration and Bureau of Indian Affairs. The coordinated investigative effort netted a total of nine arrests related to drug trafficking crimes in Rogers County and elsewhere in the Northern District of Oklahoma.
The United States Attorney’s Office for the Northern District of Oklahoma and the Rogers County District Attorney’s Office will coordinate the prosecutions of those individuals arrested. The prosecutions of Ponce-Arturez and Fredrick-Holmes will proceed in the United States District Court for the Northern District of Oklahoma. The seven other individuals who were arrested will be charged and prosecuted in Rogers County District Court. Those individuals include: John Hunt, age 68, Gene Miller, age 53, Shelley Boothe, age 30, Carl Fogleman, age 30, Ayla Jones, age 20, Charles Yahola, age 24, and John Cooper, age 34.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent until and unless proven guilty at later criminal proceedings.
Mendota Heights Man Sentenced for Possessing MethamphetamineRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 43-year-old Mendota Heights man was sentenced for possessing with intent to distribute more than 50 grams of high-purity methamphetamine. United States District Court Chief Judge Michael J. Davis sentenced Joseph Benjamin Thomas to 120 months in prison on one count of possession with intent to distribute methamphetamine in violation of federal law. Thomas was indicted on April 16, 2012, and pleaded guilty on July 11, 2012. In his plea agreement, Thomas admitted that between February 1 and April 16, 2012, he possessed with intent to distribute in excess of 50 grams of methamphetamine.
This case was the result of an investigation by the Federal Bureau of Investigation’s Joint Terrorism Task Force, which includes the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the University of Minnesota Police Department; the Minneapolis Police Department; and the St. Paul Police Department, with significant assistance from the Fairmont Police Department and the Minnesota Department of Corrections. It was prosecuted by Assistant U.S. Attorney Andrew R. Winter.Member of White Supremacist Group Admits Role in Hate Crime AssaultRead the Press Release
TRENTON, N.J. – A Mercer County, N.J., man today admitted his role in the New Year’s Eve 2011 hate crime assault of two Middle Eastern men in Sayreville, N.J., U.S. Attorney Paul J. Fishman announced.
Michal Gunar, 28, of East Windsor, NJ, a purported member of the white supremacist group known as the “Aryan Terror Brigade,” pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to an Indictment charging him with conspiracy to commit a hate crime assault, as well as the actual commission of a hate crime assault, in violation of the Matthew Shepard and James Byrd Jr., Hate Crimes Prevention Act.
According to documents filed in this case and statements made in court: Gunar admitted attended a New Year’s Eve “meet and greet” white supremacist event at a residence in East Brunswick, N.J., on Dec. 31, 2011. That night, Gunar, Christopher Ising and Kyle Powell drove to an apartment complex in Sayreville, N.J., with the express purpose of assaulting random, non-Caucasian individuals. Gunar brandished a knife and attacked two Middle Eastern men, shouting anti-Arab slurs. He admitted today that he assaulted at least one man by pulling the individual out of a parked car and punching the man about the face and head, causing physical injury.
Ising, 31, of Waretown, N.J., a purported member of a white supremacist group known as the “Atlantic City Skins,” previously entered a guilty plea on both counts of the same Indictment before Judge Pisano on Feb. 13, 2013. Powell, 24, of Wildwood, N.J., and a member of the Aryan Terror Brigade, entered a guilty plea on Jan. 23, 2013, before Judge Pisano to an Information charging him with conspiracy to commit a hate crime assault.
The hate crimes to which Gunar pleaded guilty are punishable by a maximum of potential penalty of 10 years in prison on the assault count, and by a maximum of five years in prison on the conspiracy count. Both counts are also punishable by a $250,000 fine.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola, as well as detectives from the N.J. State Attorney General’s Office, under the direction of Attorney General Jeffrey S. Chiesa, with the investigation that lead to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Dennis C. Carletta of the U.S. Attorney’s Office National Security Unit in Newark, and Trial Attorney Fara Gold of the criminal section of the Civil Rights Division of the Department of Justice in Washington, D.C.
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Gunar Indictment
Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Federal Corruption Charges Against New York State Senator Malcolm Smith and New York City Council Member Daniel HalloranRead the Press Release
Charges Include Cash Bribes of More Than $100,000 Changing Hands in Connection With Republican Mayoral Ballot, City Council Discretionary Funds, and Spring Valley Development Project
Preet Bharara, 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 a Complaint charging New York State Senator MALCOLM SMITH, New York City Council Member DANIEL HALLORAN, and four others with bribery, extortion, and fraud charges. The charges against the defendants arise from an undercover investigation of three distinct but related bribery schemes involving public corruption. In the first scheme, SMITH allegedly arranged for cash bribes totaling $40,000 to be paid to VINCENT TABONE and JOSEPH SAVINO, two New York City Republican county leaders, as part of an effort by SMITH, who is a Democrat, to appear on the Republican primary ballot as a mayoral candidate in the 2013 election. HALLORAN is alleged to have received approximately $20,500 in cash bribes to act as an intermediary with TABONE and SAVINO on SMITH’s behalf. In the second scheme, HALLORAN allegedly received approximately $18,300 in cash bribes and $6,500 in straw donor campaign contribution checks in exchange for agreeing to steer up to $80,000 of New York City Council discretionary funding to a company he believed was controlled by those who paid him the bribes. The final scheme involved NORAMIE JASMIN and JOSEPH DESMARET, the Mayor and Deputy Mayor of the Village of Spring Valley in Rockland County, and their alleged receipt of financial benefits, including JASMIN’s receipt of a hidden interest in a real estate project and DESMARET’s receipt of approximately $10,500 in cash bribes, in exchange for official acts. All six defendants were arrested this morning and will be presented later today in White Plains federal court before U.S. Magistrate Judge Lisa Margaret Smith.
Manhattan U.S. Attorney Preet Bharara said: “Today’s charges demonstrate, once again, that a show-me-the-money culture seems to pervade every level of New York government. The complaint describes an unappetizing smorgasbord of graft and greed involving six officials who together built a corridor of corruption stretching from Queens and the Bronx to Rockland County and all the way up to Albany itself. As alleged, Senator Malcolm Smith tried to bribe his way to a shot at Gracie Mansion – Smith drew up the game plan and Councilman Halloran essentially quarterbacked that drive by finding party chairmen who were wide open to receiving bribes. After the string of public corruption scandals that we have brought to light, many may rightly resign themselves to the sad truth that perhaps the most powerful special interest in politics is self-interest. We will continue pursuing and punishing every corrupt official we find, but the public corruption crisis in New York is more than a prosecutor’s problem.”
FBI Assistant Director-in-Charge George Venizelos said: “Elected officials are called public servants because they are supposed to serve the people. Public service is not supposed to be a shortcut to self-enrichment. People in New York, in Spring Valley -- in any city or town in this country -- rightly expect their elected or appointed representatives to hold themselves to a higher standard. At the very least, public officials should obey the law. As alleged, these defendants did not obey the law; they broke the law and the public trust. There is a price to pay for that kind of betrayal.”
According to the allegations in the Complaint unsealed today in White Plains federal court:
Scheme to Bribe New York City Republican Party Committee Leaders
Under New York State law, a person seeking to run for a citywide position in New York City may not have his or her name listed as a candidate on the ballot if he or she is not a registered member of the party having the primary contest unless he or she receives the approval of at least three of the five chairmen of the county committees for that party. The approval is given in the form of what are known as Wilson Pakula certificates, which are signed by the approving chairmen.
SMITH, a Democrat, was first elected to the New York State Senate in March 2000, and represents the 14th Senatorial District in Queens, New York. He is chairman of the Independent Democratic Conference of the State Senate and, among other positions, has served as the State Senate’s minority and majority leader. SMITH has spoken publicly about his desire to run for Mayor of New York City in 2013.
HALLORAN, a Republican, was elected to the New York City Council in 2009, and represents the City Council’s 19th District in Queens, New York. HALLORAN ran unsuccessfully for the United States Congress in 2012. TABONE and SAVINO are New York City Republican Party officials. SAVINO is the Chairman of the Bronx County Republican Party and TABONE is the Vice Chairman of the Queens County Republican Party. Their duties include endorsing candidates for public office and voting on Wilson Pakula certificates.
In November 2012, SMITH agreed with HALLORAN, an undercover FBI agent posing as a wealthy real estate developer (the “UC”), and a cooperating witness (“CW”) to bribe New York City Republican Party county leaders in exchange for their issuance of Wilson Pakula certificates that would enable SMITH to run as a Republican candidate for New York City Mayor in 2013. When asked by the UC what he wanted in exchange for his help securing the certificates, HALLORAN said that he wanted to get his “mortgage situation resolved,” and that if SMITH was elected mayor, he would expect to be named Deputy Police Commissioner if he asked for the job. He also solicited and received from the UC and the CW approximately $20,500 in cash for himself.
In furtherance of the scheme, HALLORAN arranged for the UC and the CW to meet TABONE and SAVINO, and negotiated the amounts of the cash bribes to be paid by the UC and the CW to TABONE and SAVINO on SMITH’s behalf. HALLORAN told the UC and the CW that, “you gotta get [SAVINO] business but put twenty-five in an envelope….TABONE is twenty-five up front, twenty-five when the Wilson Pakula is delivered.” After his meeting with the UC and the CW, SAVINO accepted $15,000 in cash and agreed to accept another $15,000 after he formally approved Smith’s appearance on the 2013 Republican ballot for New York City Mayor. After meeting with the UC and the CW, TABONE accepted $25,000 in cash and agreed to accept another $25,000 after his committee approved Smith’s appearance on the 2013 Republican ballot for New York City Mayor.
In exchange for the payment of bribes to TABONE and SAVINO by the UC and CW, in his capacity as a New York State Senator, SMITH agreed to help obtain $500,000 in New York State funds for road work that would benefit a real estate project in Spring Valley that SMITH understood was being developed by a company controlled by the UC and CW (“the Company”).
Bribery of HALLORAN to Steer City Council Discretionary Funding
Since August 2012 to the present, HALLORAN accepted approximately $18,300 in cash bribes and approximately $6,500 in straw donor campaign contribution checks from the UC and the CW in exchange for agreeing to steer up to $80,000 in New York City Council discretionary funding to the Company.
For example, at a meeting on September 7, 2012, at which HALLORAN and the UC discussed HALLORAN’s need to raise money for his congressional campaign, HALLORAN agreed to hire someone of the CW’s choosing for a congressional staff or some equivalent position, and to help him raise money for his campaign. During the discussion, HALLORAN said: “That’s politics, that’s politics, it’s all about how much. Not whether or will, it’s about how much, and that’s our politicians in New York, they’re all like that…And they get like that because of the drive that the money does for everything else. You can’t do anything without the f***ing money.” During the meeting, the CW paid HALLORAN $7,500. And near the end of the meeting, HALLORAN remarked: “Money is what greases the wheels – good bad, or indifferent.”
In furtherance of this scheme, HALLORAN wrote two letters on New York City Council letterhead about this funding, one to civic organizations and the other to the Company. Despite suggesting in these letters that work would be done by the Company to support the allotment of up to $80,000, HALLORAN agreed with the UC and the CW that the Company would provide no services.
Bribery of the Spring Valley Mayor and Deputy Mayor
NORAMIE JASMIN and JOSEPH DESMARET were sworn in as Mayor and Deputy Mayor of the Village of Spring Valley, New York in December 2009. From September 2011 through the date of the Complaint, JASMIN and DESMARET accepted financial benefits from the UC and the CW in exchange for official acts. DESMARET accepted approximately $10,500 worth of cash bribes from the UC and the CW in exchange for, among other things, his vote in favor of a sale of land owned by Spring Valley to the Company a company he believed was controlled by the UC and that would be used to build a community center (the “Real Estate Project”).
In exchange for her vote awarding the Real Estate Project to the Company, JASMIN demanded a partnership interest in the Company, stating: “So for me, it’s better for us to partner, that’s what I said to you before; a partnership will be best.” When the CW later suggested that JASMIN have a 20% stake in the project, she replied: “Partnership is fifty fifty, right?”
In support of the scheme, JASMIN coached the UC on how to make his presentation to the Spring Valley Village Board of Trustees about why the board should award the Real Estate Project to his company. She also coached two other individuals, whom she understood were associates of the UC and who would pose as competing developers, but who were actually undercover FBI agents, on how to make their presentation to the Village Board. In addition, both JASMIN and DESMARET agreed to steer to the UC’s company the New York State funding for road work that SMITH agreed to help the CW and the UC obtain.
Charts containing the names, ages, residences, charges, and maximum penalties for the defendants are attached.
Mr. Bharara praised the investigative work of the FBI. He also thanked the Rockland County District Attorney’s Office and the Spring Valley Police Department for their invaluable assistance to the investigation.
This case is being handled by the Office’s White Plains Division and Public Corruption Unit. Assistant U.S. Attorneys Douglas B. Bloom and Alvin Bragg are in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Click here to view chart(s)
U.S. v. Malcolm Smith et al. Complaint
Lonnie Dean Pleads Guilty to Trafficking Methamphetamine in Valencia County and Assaulting A Federal OfficerRead the Press Release
Plea Agreement Requires Twenty Year Prison SentenceALBUQUERQUE – Lonnie Dean, 48, of Belen, N.M., pleaded guilty this morning to methamphetamine trafficking and assault on a federal officer charges under a plea agreement that requires him to serve a 20 year prison sentence. Dean’s guilty plea was announced by U.S. Attorney Kenneth J. Gonzales, Special Agent in Charge Joseph M. Arabit of the El Paso Division of the DEA, and Chief Roy E. Melnick of the Los Lunas Police Department.
Dean was one of twelve individuals from Valencia and Socorro Counties charged with federal methamphetamine trafficking charges in May and June 2011, following a 16-month investigation led by the DEA and the Los Lunas Police Department. The investigation, codenamed “Vanilla Sky,” was pursued under the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide initiative that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated attack against major drug trafficking and money laundering organizations.
According to court filings, Dean was part of a large scale methamphetamine trafficking organization that operated in Valencia County, and allegedly was led by Arturo Acosta-Astorga, 53, and Ovidio Estrada, 39, both residents of Los Lunas, N.M. Between March 2010 and May 2011, Acosta-Astorga, Estrada and their co-conspirators allegedly conspired to sell ounce quantities of methamphetamine to undercover DEA agents on at least ten separate occasions. The defendants allegedly sold more than a pound of methamphetamine to the undercover DEA agents during a 14-month period.
During this morning’s proceedings, Dean pled guilty to conspiracy to distribute methamphetamine, possession of methamphetamine with intent to distribute, and assaulting a federal officer with a dangerous weapon. In entering his guilty plea, Dean admitted conspiring with others to distribute methamphetamine in Los Lunas and Belen, and assaulting a federal officer as he attempted to avoid arrest.
More specifically, Dean admitted that on May 26, 2011, he drove to a gas station in Belen for the purpose of selling methamphetamine to another person. As Dean was talking to his customer, DEA agents approached Dean and attempted to arrest him. One DEA agent, who had blocked Dean’s car from the front, exited his car and was moving on foot to a better tactical position with his gun and badge drawn, while another DEA agent parked his vehicle behind Dean’s car to block Dean in. Dean admitted that, instead of surrendering, he put his car into reverse and hit the DEA agent’s car causing it to go backward. Dean then put his car into drive and drove forward, missing the DEA agent only because the agent jumped to the side to avoid being struck. Less than a minute later, Dean drove into a road and entered an intersection where he struck a car driven by Roberta Torres, a 40-year-old resident of Belen, who died as a result of the injuries she sustained in the crash.
Dean has been in federal custody since his arrest on May 26, 2011, and remains detained pending his sentencing hearing, which has yet to be scheduled. Dean also faces several state charges, including homicide by vehicle, relating to Ms. Torres’ death in the 13th Judicial District Court for the State of New Mexico. Dean has entered a not guilty plea to the state charges.
Three other defendants have entered guilty pleas in this federal case. Andrew Gilbert Martinez, 30, of Socorro, N.M., pled guilty in Oct. 2011, to using a communication device to facilitate a drug trafficking crime, also known as a “phone count.” Martinez was sentenced in Jan. 2013, to 27 months in prison followed by a year of supervised release. Thanh Vu Huynh, 47, of Los Lunas, pled guilty in April 2012, to three phone counts and remains on conditions of release pending his sentencing hearing. Sylvia Jeanette Sisneros, 51, of Socorro, pled guilty to conspiracy to distribute methamphetamine and three phone counts in Nov. 2012. Sisneros remains in custody pending her sentencing hearing which is scheduled for April 4, 2013. Acosta-Astorga has yet to be arrested and is considered a fugitive. The charges against Acosta-Astorga and the defendants who have entered not guilty pleas are merely accusations and they are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the DEA and the Los Lunas Police Department and is being prosecuted by Assistant U.S. Attorney Nicholas J. Ganjei.
Justice Department Announces the Successful Resolution of Its Agreement with the Orange County, Fla., Sheriff’s OfficeRead the Press Release
The United States announced today that the Orange County, Fla., Sheriff’s Office (OCSO) has successfully implemented an agreement on the use of electronic control weapons, commonly referred to as Tasers. Significantly, data OCSO provided to the department demonstrates a marked decrease in the use of Tasers under Sheriff Jerry Demings’ tenure while implementing the department’s agreement. OCSO’s data also demonstrated an overall decrease in uses of force during the same period.
In 2010, the department and OCSO entered into a Memorandum of Agreement to ensure OCSO’s constitutional use of Tasers. The agreement set forth standards for Taser policies, training and reviews of Taser use. The department found that OCSO came into substantial compliance with the agreement in October 2011, and OCSO has maintained that compliance level for 18 months as required by the agreement.
“The successful resolution of our agreement with OCSO demonstrates that effective policing and constitutional policing go hand in hand. OCSO has heightened its standards on Taser use, reduced the use of Tasers, and also reduced its overall use of force, all while providing effective policing to the people of Orange County,” said Roy L. Austin Jr., Deputy Assistant Attorney General for the Civil Rights Division. “We are confident that OCSO has the systems in place to ensure constitutional use of Tasers going forward.”
In 2007, the department initiated an investigation of OCSO’s Taser use pursuant to the Violent Crime Control and Law Enforcement Act of 1994. The department issued a technical assistance letter to OCSO in August 2008 describing policies, training and accountability mechanisms necessary to ensure the constitutional use of Tasers.
The Violent Crime Control and Law Enforcement Act of 1994 prohibits state and local governments from engaging in a pattern or practice of misconduct by law enforcement officers that deprives individuals of federally-protected rights. The act also allows the Justice Department to remedy such misconduct through civil litigation. The Justice Department has conducted similar investigations and has obtained important reforms in police departments and law enforcement agencies across the country.
The Special Litigation Section of the Justice Department’s Civil Rights Division, in Washington, D.C., and the U.S. Attorney’s Office for the Middle District of Florida jointly conducted this investigation.
Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt . Additional information about the U.S. Attorney’s Office for the Middle District of Florida is available on its website at www.justice.gov/usao/flm .
Jury Returns Verdicts in Lengthy Trial Against Two Ranking Gang MembersRead the Press Release
NASHVILLE, Tenn. - April 2, 2013 - Leonard Baugh a/k/a Hype, age 35, and Omega Harris a/k/a Nino a/k/a Q, also age 35, both of Nashville were convicted of multiple charges by a federal jury after a five week trial, announced Jerry E. Martin, U.S. Attorney for the Middle District of Tennessee. The trial focused on Baugh’s use of contraband cellular telephones while serving a state prison sentence at Riverbend Maximum Security Institution in Nashville.
“We are appreciative of the diligent efforts of the jurors who served in this lengthy trial and we respect their verdicts,” said U. S. Attorney Jerry E. Martin. “This was a difficult investigation into a large and dangerous gang whose members tried to control prisons, jails and our neighborhoods. The proof showed that this gang was well armed, and regularly planned to commit violent crimes. This office and our law enforcement partners dedicated significant resources to investigating and prosecuting this case with the belief that such dangerous offenders who were lurking in our neighborhoods with multiple firearms and who were willing to use those guns to abduct others and invade their homes needed to be stopped.”
According to the proof at trial, both defendants held the rank of “OG” (Original Gangster) - the highest rank in the Rollin’ 60s Crips street gang, and committed various crimes with other Rollin’ 60s gang members. The trial proof showed that people as young as 13 years of age were joining this violent street gang.
Baugh was convicted of conspiring to commit two armed robberies against people he believed to be drug dealers, and with possession of firearms in furtherance of those conspiracies. He was responsible for the multiple guns possessed by the co-conspirators who were to carry out the planned home-invasion style robberies. Baugh was also convicted of conspiring to distribute cocaine and crack cocaine as part of a scheme to raise bond money for two female gang members who had been arrested on state prescription fraud drug charges. Baugh was serving a Tennessee state prison sentence at the time of the offenses, and the trial proof showed he routinely used a contraband cell phone while in Tennessee’s highest security prison to arrange robberies and drug offenses, which were to be committed by other Rollin’ 60s gang members.
Harris was convicted of conspiracy to distribute cocaine which was to be taken as part of one of the planned robberies, as well as conspiring to distribute prescription drugs such as Oxycontin.
The proof at trial included evidence that Harris conspired to obtain Oxycontin and other prescription drugs through the use of forged prescriptions as well as through large scale distribution of Oxycontin in various Nashville public housing projects. That proof included estimated distribution of thousands of highly addictive and dangerous Oxycontin 80 milligram pills per week. The investigation into how Harris was able to obtain these drugs in bulk continues.
Harris was also convicted of being a felon in possession of a firearm, relating to the possession of a folding Kel-Tech Sub 2000 firearm. The proof at trial included tracing that firearm through the hands of over a dozen gang members and associates, including proof that Harris provided that firearm to other gang members for use in other crimes. Harris was acquitted of conspiring to commit various drug-related robberies and the firearms charges related to those conspiracies.
Sentencing for both defendants has been scheduled for June 20, 2013 before Senior U.S. District Judge John Nixon. The United States intends to seek lengthy prison sentences against each of these defendants, reflecting each defendants’ roles in these crimes, their previous criminal histories, and other appropriate sentencing factors.
The investigation, which is still ongoing, included the arrests of over 30 Rollin’ 60s gang members and associates, including five holding the highest rank of “OG.” Many of the defendants previously pleaded guilty, and others - who are presumed innocent - will be tried later on a variety of charges including drug trafficking, conspiracy to commit armed robberies, firearms offenses, and obstruction of justice.
The case was investigated by the FBI, with assistance from other federal and local agencies. This trial was prosecuted by Assistant U.S. Attorneys Sunny A.M. Koshy and Special Assistant U.S. Attorney Mario M. Pinto.Jury Convicts Essex County, N.J., Man in Armed Robbery and Shooting of Retired Police OfficerRead the Press Release
TRENTON, N.J. – A Essex County, N.J., man was convicted by a federal jury in Trenton federal court today on all counts related to the robbery and shooting of a retired police officer working as an armed money courier, U.S. Attorney Paul J. Fishman announced.
The jury returned guilty verdicts against James Sodano, 69, of West Orange, N.J., following a two-and-a-half-week trial before U.S. District Judge Peter G. Sheridan. Sodano was convicted on all three counts charged in the Indictment: conspiracy to commit Hobbs Act robbery; Hobbs Act robbery; and possessing, carrying and using a firearm, which was discharged in connection with the robbery.
According to documents filed in this case and the evidence at trial:
On May 19, 2011, Sodano and another armed man confronted a retired police officer working as an armed money courier for a check cashing service as he was delivering a bag containing $400,000 to a Newark bar. As he exited his car, an armed man approached him, and the two men exchanged gunfire. The courier fell to his knees, and the armed man fled.
Sodano approached the courier from behind, shooting him in the jaw. As the victim fell, he fired a shot, hitting Sodano in the leg. Sodano shot him again, hitting the victim in the arm. Sodano then pulled the bag of money from beneath the victim as he was lying face down on the ground. Sodano drove off in his car, but crashed three and a half blocks away. When police arrived, they found Sodano, wearing a bulletproof vest and a pair of gloves, slipping in and out of consciousness, still holding on to the steering wheel. Police found a pool of blood, several weapons, ammunition and the bag containing the $400,000 inside the car.
Sodano faces a maximum potential penalty of 20 years in prison on the Hobbs Act conspiracy charge and a maximum of 20 years for the Hobbs Act robbery charge. For the conviction on the count of possessing, carrying and using a firearm, which was discharged in furtherance of the Hobbs Act robbery, Sodano faces a mandatory minimum penalty of 10 years in prison and a maximum potential penalty of life in prison, which must run consecutively to any Hobbs Act robbery prison term. Each count also carries a maximum $250,000 fine. Sentencing is currently scheduled for July 8, 2013.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez in Newark, for the investigation leading to today’s guilty verdict. He also thanked the Essex County Prosecutor’s Office and the Newark Police Department, for their roles in the case.
The government is represented by Senior Litigation Counsel Serina M. Vash and Assistant U.S. Attorney Dara Aquila Govan of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
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Defense counsel: Hal Haveson Esq., Princeton, N.J.Illegal Alien Convicted of Possession and Use of False Identity Documents and False Claim of United States CitizenshipRead the Press Release
An illegal alien from El Salvador who used false identity documents to gain employment and falsely claimed to be an United States citizen was convicted by a jury today, after a two-day trial in federal court in Cedar Rapids.
Julian Reyes Ferrer-Hernandez, age 27, from Waterloo, Iowa, was convicted of one count of unauthorized use of a Social Security number not assigned to him, one count of unlawful use and possession of a fake social security card and fake permanent resident card to gain employment in the United States, one count of making a false claim of being a lawful permanent resident alien on an Immigration I-9 form, one count of falsely claiming to be an United States citizen, and one count of making a false statement regarding his employment during an interview with immigration officers. The verdict was returned this afternoon following about 90 minutes of jury deliberations.
The evidence at trial showed that on March 14, 2012, Ferrer-Hernandez was arrested in Waterloo, Iowa, for public intoxication. At the time of his arrest, Ferrer-Hernandez provided a Waterloo police officer with six different identity cards, including a fake social security card and a fake lawful permanent resident alien card. The permanent resident number was assigned to a Nigerian. Officers also seized two El Salvadoran identity cards and two fake California ID cards. Ferrer-Hernandez was born in, and is a citizen of, El Salvador.
Testimony showed that Ferrer-Hernandez used the fake social security card and the fake lawful permanent resident alien card to obtain employment in Waterloo, Iowa, where he filled out an Immigration I-9 Form on May 19, 2008, falsely claiming to be a lawful permanent resident alien. Immigration I-9 forms are required to be completed by all employees working within the United States. Ferrer-Hernandez worked in Waterloo, Iowa, continuously from May 2008 through February 2012.
On April 16, 2012, Ferrer-Hernandez was questioned by an officer with Homeland Security. During that interview Ferrer-Hernandez first claimed he was born in El Salvador, then falsely claimed he was a United States citizen born in an unknown city in Texas. Ferrer-Hernandez also falsely stated that he had not been employed in the United States since 2005.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Ferrer-Hernandez remains in custody of the United States Marshal pending sentencing. Ferrer-Hernandez faces a possible maximum sentence of 33 years’ imprisonment, a $1,250,000 fine, $500 in special assessments, and 13 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Daniel C. Tvedt and was investigated by officers from the Waterloo Police Department, the Black Hawk County Sheriff’s Office, and the Department of Homeland Security, Immigration and Customs Enforcement.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-2012.
Identity Thief Indicted on Federal ChargesRead the Press Release
TSA Caught Defendant with Nearly 100 Fraudulent Credit Cards
ATLANTA - Elton Lee Flenaugh has been indicted on charges of conspiracy, possession of counterfeit access devices, and aggravated identity theft after TSA discovered fraudulent credit cards in his carry-on bag during pre-flight security screening.
“Identity theft and credit card fraud is a pervasive problem that comes to light in many different ways, usually after the damage is already done,” said United States Attorney Sally Quillian Yates. “Alert TSA agents should be commended for catching this thief red-handed and referring him to law enforcement.”
According to United States Attorney Yates, the charges, and other information presented in court, on February 9, 2013, Flenaugh and a female companion, who reside in the San Francisco Bay Area, were scheduled to fly from Atlanta to Phoenix, Az. on United Airways Flight 88 at 7:40 a.m. As they approached TSA’s main pre-flight security screening checkpoint, Flenaugh handed his backpack to his companion. He then left her and presented himself for screening without any carry-on items. He used TSA’s identity verification process because he claimed to be flying without any photo identification. Flenaugh provided TSA with an alias during this process, using the name “Joshua Ford.”
Flenaugh’s companion presented carry-on bags to TSA for screening, including Flenaugh’s backpack. While the backpack was being x-rayed, an alert TSA employee noticed a suspicious package. Upon further inspection a stash of nearly 100 fraudulent credit cards was discovered hidden inside an empty Lay’s potato chip bag. The credit cards were in various male and female names -- including 33 in the name of Flenaugh’s female companion. Additionally, 21 of the credit cards had not yet been embossed with names or account numbers.
A subsequent search of the backpack by the Atlanta Police Department (APD) revealed multiple fraudulent drivers licenses secreted in various places in the backpack. Licenses from various states including Arizona, New Jersey, and Ohio were found under the insole of a pair of men’s tennis shoes. Three had different names bearing Flenaugh’s photograph.
Flenaugh tried to flee but was arrested by APD, and charged with state credit card fraud offenses. On March 4, 2013, the U.S. Secret Service arrested him and charged him by complaint with one count of possession of 15 or more counterfeit or unauthorized access devices.
On March 7, 2013, U.S. Magistrate Judge Linda T. Walker ordered Flenaugh, 33, a/k/a Joshua Ford a/k/a Ali Emir Waheed, of Richmond, Calif., to remain in federal custody pending trial both as a flight risk and as a danger to the community. Walker based her ruling on his ready access to false identity documents and credit cards, his use of aliases, and his extensive criminal history.
“The Secret Service will continue to collaborate with our law enforcement partners to aggressively target and arrest individuals who commit financial crimes,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
Flenaugh’s companion was arrested by APD at the airport and charged with state credit card fraud crimes. She remains in state custody.
The indictment charges Flenaugh with one count of conspiracy to possess 15 or more counterfeit or unauthorized access devices, one count of possession of 15 or more counterfeit or unauthorized access devices, and nine counts of aggravated identity theft. The conspiracy charge carries of maximum sentence of 5 years in federal prison, the possession charge carries a maximum sentence of 10 years in federal prison, and each of the aggravated identity theft charges carries a mandatory minimum sentence of two years in federal prison, at least one count of which is required to be imposed consecutive to any sentence imposed on the underlying charges. Each of the charges also authorizes a fine of up to $250,000 per count. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
This case is being investigated by Special Agents of the United States Secret Service.
Assistant United States Attorney David M. Chaiken is prosecuting the case.
Members of the public are reminded that the indictment contains only allegations. A defendant is presumed innocent of the charges and it will be the government's burden to prove a defendant's guilt beyond a reasonable doubt at trial.
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 home page for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Hunterdon County, N.J., Man Sentenced to 15 Years in Prison for Distributing Videos of Child Sexual Abuse over the InternetRead the Press Release
TRENTON, N.J. — A Hunterdon County, N.J., man was sentenced today to 15 years in prison for distributing images of child sexual abuse over the Internet, U.S. Attorney Paul J. Fishman announced.
John Livoti, 42, of Hampton, N.J., previously pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to an Information charging him with one count of distribution of child pornography. Judge Pisano imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:Livoti admitted that from May 2011 through February 2012 he used peer-to-peer file sharing software to download and to share images of child pornography through the Internet. He accessed the Internet through his neighbor’s wireless Internet connection. He further admitted that for a period of time in 2011 he paid for a minor, living in another state, to access the peer-to-peer network so that the minor could access child pornography.
Special agents of the FBI and other law enforcement executed a search warrant at Livoti’s apartment in Hampton, N.J., on Feb. 2, 2012. Law enforcement seized a netbook computer and an external hard drive that contained child pornography.
U.S. Attorney Fishman credited the FBI Cyber Crimes Task Force, under the direction of Acting Special Agent in Charge David Velazquez in Newark; the Hunterdon County Prosecutor's Office, under the direction of Prosecutor Anthony P. Kearns III; and Hunterdon County Chief of Detectives John J. Kuczynski, with the investigation leading to today’s sentence.
In addition to the prison term, Judge Pisano sentenced Livoti to lifetime supervised release, with restricted contact with minors, and ordered to pay $5,000 in restitution. He must also register as a sex offender.
The government is represented by Assistant U.S. Attorney John E. Clabby of the U.S. Attorney’s Office Criminal Division in Trenton.
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Defense counsel: Lisa Van Hoeck Esq., Assistant Federal Public Defender, Trenton
Former Pastor Sentenced to Serve 10 Years in Federal Prison for Possession of Child PornographyRead the Press Release
DENVER – Richard Howard Craft, age 69, of Thornton, Colorado, was sentenced today by U.S District Court Judge R. Brooke Jackson to serve 120 months (10 years) in federal prison for possession of child pornography, United States Attorney John Walsh and FBI Denver Acting Special Agent in Charge Steven Olson announced. Following his 10 years in prison, Craft is to spend 5 years on supervised release. He is also to register as a sex offender. Judge Jackson scheduled a hearing for June 6, 2013 to determine the amount of restitution victims should receive. Craft, who is free on bond, was ordered to report to a Bureau of Prison facility once one is designated.
Craft was indicted by a federal grand jury in Denver on August 20, 2012. He pled guilty before Judge Jackson on November 5, 2012. He was sentenced on April 1, 2013.
Prior to his arrest, Craft was an interim pastor of Family of Christ Presbyterian Church of Greeley.
According to the facts contained in court documents, on December 23, 2009, an FBI special agent in Philadelphia, operating in an undercover capacity, accessed the Internet and connected to a publicly available peer-to-peer file-sharing program. The FBI agent observed numerous files depicting child pornography. Further investigation revealed that the files were being shared from Craft’s computer located at his Thornton, Colorado residence.
As a result of the investigation, the U.S. Attorney’s Office obtained an indictment. Ultimately, Craft pled guilty to the possession of child pornography that had been shipped and transported in interstate and foreign commerce by any means, including by computer, between July 2007 and January 2008.
Craft also forfeited any and all of his rights, title and interest in the child pornography images, the computers containing child pornography, and any other real or personal property he used or intended to be used to commit or promote the commission of the offenses.
“As the defendant told Judge Jackson during his sentencing hearing, sexual predators view children as objects for gratification, not human beings to nurture,” said U.S. Attorney John Walsh. “The lengthy prison sentence is a result of the fact of the defendant’s compulsive viewing of child pornography.”
“The FBI’s Violent Crimes Against Children Program will continue to aggressively investigate cases that involve possession of child pornography in order to protect our children from predators on the streets and online,” said FBI Denver Acting Special Agent in Charge Steven Olson.
This case was investigated by the Federal Bureau of Investigation (FBI) Violent Crimes Against Children Program.
Craft was prosecuted by Assistant U.S. Attorneys Ryan Bergsieker and Alecia Riewerts Wolak and Department of Justice Child Exploitation and Obscenity Section Trial Attorney Michael Grant.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/ For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
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Former Family Practice Physician Sentenced to 51 Months in Prison for Trading Child PornographyRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that CARL G. KOPLIN, 55, of Tolland, was sentenced today by Senior United States District Judge Alfred V. Covello in Hartford to 51 months of imprisonment, followed by five years of supervised release, for receiving and distributing child pornography. KOPLIN also was ordered to pay a fine of $10,000.
“This defendant’s appalling collection of child pornography was one of the largest that we have seen here in Connecticut,” stated U.S. Attorney Fein. “It’s reprehensible that a practicing physician who held such an important position of trust in the community victimized so many children by collecting and trading sexually explicit images of them. This Office is committing to working with the FBI, Connecticut Child Exploitation Task Force and our other law enforcement partners to protect children by stemming the distribution of these images and vigorously prosecuting offenders.”
According to court documents and statements made in court, a special agent with the Northern Virginia Resident Agency of the Washington Field Office of the Federal Bureau of Investigation used a publicly available Internet file sharing program to download approximately 300 images and videos of child pornography from the shared directories of a user with an Internet Protocol (IP) address that was subsequently identified as belonging to a subscriber at KOPLIN’s residence in Tolland.
On July 9, 2010, federal agents searched KOPLIN’s home and seized a desktop computer, storage media and other computer components. KOPLIN was arrested on that date after he admitted to agents that he used a file sharing program to trade images of child pornography, and that he was responsible for any child pornography found as a result of the search of his residence.
Subsequent forensic analysis of the seized items revealed thousands of images and videos depicting child pornography, totaling more than 800 gigabytes in size.
Prior to his arrest, KOPLIN was employed as a family practice physician in Vernon.
KOPLIN has been in home confinement under electronic monitoring by the U.S. Probation office since the date of his arrest. On August 29, 2012, he pleaded guilty to one count of receipt of child pornography.
This matter was investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The case was prosecuted by Assistant United States Attorneys Ray Miller, Sarala Nagala and Deborah Slater.
The Connecticut Child Exploitation Task Force, which is housed at the main FBI office in New Haven, investigates crimes against children occurring over the Internet, and provides computer forensic review services for participating agencies. For more information about the Task Force, or to report child exploitation crimes, please contact the FBI at 203-777-6311.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Former Defense Department Contract Employee Sentenced to 35 Months <br /> in Prison for Participating in Corruption Scheme at Camp Arifjan in KuwaitRead the Press Release
A former contract employee of the U.S. Defense Department (DoD) was sentenced today to serve 35 months in prison for his participation in a bribery and money laundering scheme arising from corruption in the award of defense contracts at Camp Arifjan, an Army base in Kuwait, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Wajdi Birjas, 41, of Evansville, Ind., was sentenced today by Chief U.S. District Judge Richard L. Young in the Southern District of Indiana. In addition to his prison term, Birjas was sentenced to serve three years of supervised release and ordered to forfeit $650,000.
Birjas pleaded guilty on Aug. 11, 2010, to one count of bribery conspiracy and one count of money laundering conspiracy.
According to court documents, Birjas was a contract employee in the Host Nation Affairs office at Camp Arifjan between approximately 2004 and August 2007. In this position, his responsibilities included translating documents, handling customs matters, and identifying Kuwaiti companies capable of providing certain goods and services to the U.S. military in Kuwait. Through his work, Birjas had frequent contact with U.S. Army contracting officials, including officials who were regularly receiving unlawful payments from individuals who had contracts with, or were seeking contracts from, DoD.
According to court documents, Birjas, acting at the direction of a contractor working in Kuwait, developed corrupt relationships with certain U.S. Army contracting officials, including Sergeant First Class Richard Evick, who was deployed to Camp Arifjan as the senior procurement non-commissioned officer, Major Christopher Murray and Major James Momon. By bribing these Army contracting officials in 2005 and 2006, Birjas assisted the contractor in obtaining a total of more than $1.7 million in connection with DoD contracts to provide various goods and services to the U.S. military. In return, Birjas received a share of the profits that the contracts generated and was allowed to live rent-free in a villa in Kuwait that contained a hidden safe.
Court documents indicate that Birjas, among other things, paid Murray approximately $90,000; paid Evick approximately $22,000; and paid for Evick’s and Momon’s airplane and hotel expenses to allow them to celebrate New Year’s Eve in Dubai. According to court documents, Birjas also allowed Momon to hide approximately $680,000 worth of his bribe money in Birjas’s safe at the villa.
Birjas admitted that, after Momon had returned to the United States at the end of his tour, Birjas agreed to assist Momon in arranging for $250,000 of Momon’s bribe money to be transferred from Kuwait to the United States. Birjas admitted to working out the details of this agreement with Evick and one of Evick’s associates, Crystal Martin, a former master sergeant in the Army who operated a concession to sell clothing at U.S. military bases in Kuwait. According to court documents, Birjas delivered approximately $85,000 worth of Momon’s bribe money to Martin for ultimate delivery to Momon in the United States.
The case against Birjas arose out of an investigation into corruption at the Army contracting office at Camp Arifjan, which has led to charges against 19 individuals, all of whom have pleaded guilty or been convicted at trial.
The case is being prosecuted by Trial Attorneys Peter C. Sprung, Edward J. Loya Jr., Eric G. Olshan and Timothy J. Kelly of the Criminal Division’s Public Integrity Section. The case is being investigated by special agents of the DCIS, the Army Criminal Investigation Command Division, the FBI and the Special Inspector General for Iraq Reconstruction.
Former City Pharmacist Pleads Guilty to Drug Trafficking ChargesRead the Press Release
PHILADELPHIA - Arlene Gerson, 46, of Philadelphia, pleaded guilty today to conspiracy to distribute oxycodone and attempted distribution of oxycodone, announced United States Attorney Zane David Memeger. Sentencing has been set for July 12, 2013 before the Honorable Stewart Dalzell of the United States District Court for the Eastern District of Pennsylvania. She faces an advisory sentencing guideline range of 57 to 71 months in prison.
Gerson was working as a pharmacist at various locations, including a health clinic run by the City of Philadelphia known as Health Center #5. Gerson used that position to access blank prescription pads, doctors’ identification information, patient identification information, and patient health insurance information in creating phony prescriptions. Gerson or one of their associates then took the false prescription to a pharmacy to be filled. Gerson and her associates then allegedly sold a portion of the controlled substances for a profit.
The case was investigated by FBI, the Philadelphia Office of Inspector General, the Drug Enforcement Administration, and the Philadelphia District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Robert Livermore.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Engineer from M/t Stolt Facto, Anselmo Capillanes, Pleads Guilty to Violating Act to Prevent Pollution from ShipsRead the Press Release
ANSELMO CAPILLANES, age 48, a citizen of the Phillipines, pleaded guilty before U.S. District Judge Jay C. Zainey to a one-count bill of information for violating the Act to Prevent Pollution from Ships, Title 33, United States Code, Section 1908, announced U. S. Attorney Dana J. Boente today.
According to the court documents, CAPILLANES served as the Second Engineer of the M/T Stolt Facto, a 26,328 gross ton oil tanker,from September 22, 2012 until on or about January 16, 2013. CAPILLANES was responsible for the operation of the Oil Water Separator onboard the vessel. The Oil Water Separator is the principal technology utilized to detect and prevent concentrations of oil in excess of 15 ppm in the vessel’s bilge water from being discharged overboard.
Starting in October 2012, CAPILLANES directed members of the engine room crew to connect hoses from the bilge wells and bilge holding tank located on the lower deck of the engine room and pump the contents of those tanks into the sewage holding tank on the uppermost deck of the engine room. By transferring the contents of the bilge wells to the sewage holding tank the oily water by-passed the Oil Water Separator and was then discharged from the sewage holding tank into the ocean.
These transfers and discharges were not recorded in the M/T Stolt Facto’s Oil Record Book. The Oil Record Book entries indicated that the Oil Water Separator had been used. In court documents associated with his guilty plea, CAPILLANES admitted he ran fresh water or sea water through the Oil Water Separator so that he could get readings from the White Box, the data recorder on the Oil Water Separator, making it appear that the Oil Water Separator was used in a manner consistent with the statements in the Oil Record Book to conceal that not all of the ship’s oily waste water was properly treated before being dumped overboard.
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