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1 April 2013
Henderson Man Pleads Guilty to Firearm ChargeRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court today DANIEL CARL DEEL, 32, of Henderson, North Carolina pled guilty before Senior United States District Judge James C. Fox to Felon in Possession of a Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924.
According to the investigation, on August 13, 2012, DEEL was in possession of a firearm after being convicted of a crime punishable by imprisonment for a term exceeding one year. DEEL faces a maximum sentence of 120 months imprisonment along with three years of supervised release at sentencing.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Henderson Police Department, North Carolina Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant United States Attorney S. Katherine Burnette prosecuted the case.
Guadalajara Resident Sentenced to over 12 Years in Prison for Smuggling Drugs Through SFORead the Press Release
OAKLAND – Pedro Daniel RODRIGUEZ, 22, a resident of Guadalajara, Mexico, was sentenced to 150 months in prison on March 28, 2013, for his role in an international drug trafficking conspiracy, United States Attorney Melinda Haag announced.
Rodriguez pleaded guilty this past September to six different felony counts that resulted from his attempt to smuggle over 13 pounds of methamphetamine and 4 pounds of cocaine through the San Francisco International Airport. In pleading guilty, Rodriguez admitted that he knew that three suitcases in his possession contained a significant amount of drugs and that he intended to distribute the drugs to a person in Sydney, Australia.
The investigation revealed that on December 29, 2011, Rodriguez arrived at San Francisco International Airport from Guadalajara, Mexico, aboard a Continental Airlines flight. Rodriguez, a United States citizen, was bound for Sydney, Australia. When Rodriguez entered the baggage control area of the airport, he was selected by United States Customs and Border Protection officers for a secondary search. A subsequent search of Rodriguez’s suitcases revealed a large amount of amount of methamphetamine and cocaine hidden in a false bottom of three suitcases.
In handing down the sentence, United States District Judge Jeffrey S. White noted that the smuggling methamphetamine and cocaine was a “serious crime” and noted that such drugs have a “detrimental effect on our society.” The sentence handed down by Judge White also included a five-year period of supervised release.
Aaron Wegner is the Assistant U.S. Attorney prosecuting the case, with the assistance of legal technician Erica Doerr. The prosecution is the result of an investigation led by agents from Homeland Security Investigations.
Grimstead Nurse Sentenced to Federal Prison for Tax FraudRead the Press Release
WASHINGTON – Jeffrey Charles, a resident of Grimstead, Va., was sentenced today to serve 46 months in federal prison for conspiring with his daughter and son-in-law to defraud the United States, aiding and assisting in the preparation of false tax returns in his daughter’s name, and filing a false tax return in his own name, the Justice Department and the Internal Revenue Service (IRS) announced.
On Nov. 6, 2012, following a six-day jury trial in Newport News, Va., Charles was convicted of one count of conspiracy, three counts of aiding and assisting in the preparation of false tax returns, and one count of filing a false tax return. According to the evidence presented at trial, Charles, a registered nurse and the administrator of a rehabilitation center, conspired with his daughter and son-in-law to impair and impede the IRS in ascertaining, computing, assessing and collecting federal income taxes. The evidence also proved that Charles aided and assisted in the preparation of three false tax returns in his daughter’s name for tax years 2000, 2001 and 2005, and attached false documents to each tax return.
Finally, the evidence at trial also established that Charles filed a false tax return in his own name for tax year 2006 in which he allegedly falsely reported earning $0.00 income. Charles joined American Rights Litigators (ARL), a Florida-based organization, and paid ARL to send fraudulent documents to the IRS on his behalf and on behalf of his daughter. In August 2004, a federal district judge permanently enjoined ARL and two of its promoters from the sale of a nationwide tax scam. In August of 2010, three promoters of ARL were each sentenced in the District of Columbia to 10 years in prison along with ARL founder Eddie Ray Kahn, who received a 20 year sentence.
Senior Judge Henry Coke Morgan Jr. also ordered Charles to pay over $300,000 in restitution to the IRS as part of his sentence.
In a separate but related case, Charles’s co-conspirators, his daughter and son-in-law Kathryn Miles and John Miles, each pleaded guilty to conspiracy and were sentenced to federal prison.
Assistant Attorney General Kathryn Keneally for the Justice Department’s Tax Division commended the investigative efforts of special agents of IRS Criminal Investigation, and Tax Division Trial Attorney Justin K. Gelfand and Assistant U.S. Attorney Brian Samuels, who prosecuted the case.Goodwin Charges Texas Doctor in Connection with Alleged Logan County Pill MillRead the Press Release
Dr. Gonzales-Ramos’s Logan, West Virginia office lacked an examination table, medical equipment and running water
*Audio Clip included*
CHARLESTON, W.Va. –United States Attorney Booth Goodwin has charged a Texas doctor who formerly practiced in Logan County, W.Va., in connection with an alleged Logan County pill mill. Dr. Fernando Gonzales-Ramos, 47, of El Paso, Texas, was charged with conspiracy to distribute and dispense controlled substances without a legitimate medical purpose and outside the usual course of professional practice. Gonzales-Ramos was charged last week in a legal filing known as an information, which typically signals that a defendant has agreed to plead guilty and is cooperating with prosecutors.
According to the information filed today, from December 2012 through March 3, 2013, Gonzales-Ramos knowingly dispensed controlled substances for illegitimate medical purposes.
Gonzales-Ramos was a practicing physician in and around Logan County, W.Va. until moving to El Paso, Texas.
According to a publicly available criminal complaint made by the FBI, on March 2, 2013, an individual cooperating with law enforcement entered a building located in Logan, W.Va., that the defendant used at the time to distribute narcotics and paid $450 cash in exchange for a prescription for the painkiller hydrocodone. Early the next day, law enforcement agents observed several people waiting outside the same building. Law enforcement agents executed a search warrant on the building. During the execution of the warrant, agents discovered a number of individuals waiting inside to get written prescriptions. Law enforcement agents also discovered that the building did not have an examination table or basic medical equipment such as a stethoscope, blood pressure cuff, or scales. The search conducted by law enforcement further revealed no running water in the building.
The investigation also revealed that employees working in the building at the time were an armed security guard, a bodyguard carrying brass knuckles, and a nurse/receptionist.
“As alleged, this doctor’s criminal conduct is shocking,” said U.S. Attorney Goodwin. “He ran a phony medical practice that was really nothing more than a drug den. It’s appalling that a licensed physician would pump illegal pills into our communities like this.”
Gonzales-Ramos faces up to 20 years in federal prison and a $1 million fine as a result of the charge filed by Goodwin. No court date has been set.
The investigation is being conducted by the Federal Bureau of Investigation, the U.S. 119 Drug Task Force, the West Virginia State Police, and the Logan County Sheriff’s Department. Assistant United States Attorney Steven Loew is in charge of the prosecution.
PLEASE NOTE: The charge contained in the information is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
Click here listen to an audio clip from U.S. Attorney Booth Goodwin
Click here to view the information
Click here to view the criminal complaint
Goodwin Announces Five Federal Guilty Pleas in Connection with the Bluefield Pill InitiativeRead the Press Release
Anti-pill sweep continues
BLUEFIELD, W.Va. – U. S. Attorney Booth Goodwin announced that four Mercer County residents and a Baltimore, Maryland resident pleaded guilty in federal court on April 1 to charges of illegally distributing prescription drugs. The charges were brought as part an ongoing effort to combat prescription pill abuse in southern West Virginia known as the Bluefield Pill Initiative.
“Criminals like these are poisoning our communities,” said Goodwin. “With these five guilty pleas, our message should be clear: Pill dealers aren’t welcome in southern West Virginia.”
Goodwin continued, “Fighting the pill epidemic has been my office’s leading priority. Pill dealers will be caught and they will be prosecuted.”
Robin Bolton, 43, of Princeton, W.Va., pleaded guilty to distributing hydromorphone, a powerful prescription painkiller commonly known as Dilaudid. Bolton admitted that on October 22, 2012, she sold a quantity of hydromorphone to a person cooperating with law enforcement authorities. The defendant also admitted that each of the illegal pill transaction took place near Princeton, W.Va.
Alane McKenzie, 39, of Princeton, W.Va., pleaded guilty to distributing hydromorphone. McKenzie admitted that on October 22, 2012, she sold a quantity of hydromorphone to a person cooperating with law enforcement authorities. She also admitted that each of the illegal pill transactions took place near Princeton, W.Va.
Robin Roope, 39, of Princeton, W.Va., pleaded guilty to distributing hydromorphone. Roope admitted that on November 5, 2012, she sold a quantity of hydromorphone to a person cooperating with law enforcement authorities.
Earl Inscore, 43, of Princeton, W.Va., pleaded guilty to distributing hydromorphone. Bolton admitted that on March 27, 2012, he sold a quantity of hydromorphone to a person cooperating with law enforcement authorities.
Robert J. Fleek Jr., 31, of Baltimore, MD, pleaded guilty to distributing hydromorphone and buprenorphine. Buprenorphine, commonly known by the trade name Suboxone or Subutex, is a drug intended to help people overcome opioid addiction as part of a rehabilitation program. Fleek admitted that he sold hydromorphone pills to persons cooperating with law enforcement on five different occasions between January 25, 2012, and March 16, 2012. Fleek also illegally sold buprenorphine to a person cooperating with law enforcement.
Bolton, Inscore and Fleek face up to 20 years in prison and a $1 million fine when they are sentenced on August 5, 2013. McKenzie and Roope each face up to 20 years in prison and a $1 million fine when they are sentenced on August 12, 2013 by Senior United States District Judge David A. Faber.
The Bluefield Pill Initiative is a collaborative, multi-agency regional law enforcement effort designed to halt prescription drug trafficking in Mercer, McDowell, and Wyoming counties. The Bluefield Pill Initiative is led by the Southern Regional Drug and Violent Crime Task Force, which includes the West Virginia State Police Bureau of Criminal Investigation; the Mercer, McDowell and Wyoming County Sheriff’s Departments; and the Bluefield and Princeton Police Departments. Assistant United States Attorneys Miller Bushong and John File are in charge of the prosecutions.
Fulton Man Sentenced for Bank Robbery, Admits Robbing Five BanksRead the Press Release
JEFFERSON CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Fulton, Mo., man was sentenced in federal court today for bank robbery after admitting that he had robbed banks in Sedalia, Chillicothe, Cuba, Moberly and Rolla, Mo.
John David Farnell, 61, of Fulton, was sentenced by U.S. District Judge Brian C. Wimes to five years and 10 months in federal prison without parole. This sentence will be served concurrently with a federal prison sentence of 13 years and six months in a separate bank robbery case that was prosecuted in the Eastern District of Missouri.
On Jan. 7, 2013 Farnell pleaded guilty to stealing $11,540 from Excel Bank in Sedalia, Mo., on Aug. 10, 2009. Farnell entered the bank carrying a green gym bag in his left hand and immediately approached a teller. He set the bag on the counter, retrieved a black handgun that had a long barrel and wooden grip, pointed it at the teller and instructed her not to make a sound. He told the teller to give him twenties, fifties and hundreds. The teller pulled the bills out of her drawer and put them on the counter. Farnell instructed the teller not to make a sound or move again, and then walked down to another window.
Farnell approached a second teller counter. He again placed the bag on the counter, displayed the gun, and stated, “I want all your tens, twenties, fifties, hundreds.” The second teller gave him all the loose bills, and Farnell asked, “Is that all?” The second teller responded, “No, I’m sorry,” and gave him the bundled tens and the twenties. Farnell exited the bank through the front doors, got into a white minivan and left.
On April 29, 2010, the First Community National Bank in Cuba was robbed. At approximately 11 a.m., a Missouri State Highway Patrol trooper stopped Farnell, who was traveling in a van that matched the description of the suspect vehicle involved in the bank robbery. During a search of the van, a Ruger .357 magnum revolver was recovered, as well as U.S. currency.
Farnell admitted to law enforcement officers that he committed the robbery in Cuba and the robbery in Sedalia, as well as robbing BTC Bank in Chillicothe on Feb. 24, 2012. Farnell stated that he committed the robberies because of financial reasons, and admitted that he used the .357 magnum revolver recovered from his van during all of the robberies.
In a separate case, Farnell was sentenced in the Eastern District of Missouri on March 9, 2012, to 13 years and six months in federal prison without parole. Farnell pleaded guilty in that case to robbing First Community National Bank in Cuba, Commerce Bank in Moberly (on March 13, 2009) and Town & Country Bank in Rolla (on Dec. 18, 2009). He also pleaded guilty in that case to one count of possessing a firearm in connection with a crime of violence.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the FBI, the Missouri State Highway Patrol, and the police departments of Sedalia, Chillicothe, El Dorado Springs, Rolla and Cuba, Mo.Former U.S. Army Captain Sentenced in Oklahoma City to 23 Months in Prison for Conspiracy to Accept Illegal GratuitiesRead the Press Release
A former U.S. Army Captain was sentenced today in Oklahoma City to serve 23 months in prison for conspiracy to accept thousands of dollars in gratuities from contractors during his deployment to Baghdad, Iraq, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Western District of Oklahoma Sanford C. Coats.
Sean Patrick O’Brien, 38, of Lawton, Okla., was sentenced by U.S. District Judge Stephen P. Friot in the Western District of Oklahoma. In addition to his prison term, O’Brien was sentenced to serve three years of supervised release and ordered to pay $37,500 in restitution to the United States.
O’Brien pleaded guilty on Nov. 9, 2012, to a criminal information charging him with two counts of conspiracy to accept illegal gratuities.
According to court documents, O’Brien, formerly a commissioned officer in the U.S. Army, assisted in the contracting process of U.S. government funds, and was therefore considered a public official. It is a violation of federal law for officers to accept gratuities from contractors dependent upon them for contracts.
According to court documents, from mid-2008 through January 2009, O’Brien, with the assistance of two alleged co-conspirators, unlawfully sought, received and accepted illegal gratuities for helping Iraqi contractors in connection with U.S. government. O’Brien accepted approximately $37,500 in cash payments and jewelry while stationed in Iraq, which he has repatriated to the United States. One of the alleged co-conspirators also offered O’Brien a vacation to a private island.
This case was prosecuted by Assistant U.S. Attorney Scott E. Williams of the Western District of Oklahoma and by Special Trial Attorney Mark Grider of the Justice Department Criminal Division’s Fraud Section, on detail from the Special Inspector General for Iraq Reconstruction (SIGIR). The case was investigated by the Defense Criminal Investigative Service, the Major Procurement Fraud Unit of the U.S. Army Criminal Investigation Command, and SIGIR.
Former U.S. Army Captain Sentenced in Oklahoma City to 23 Months in Prison for Conspiracy to Accept Illegal GratuitiesRead the Press Release
WASHINGTON – A former U.S. Army Captain was sentenced today in Oklahoma City to serve 23 months in prison for conspiracy to accept thousands of dollars in gratuities from contractors during his deployment to Baghdad, Iraq, announced Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division and U.S. Attorney for the Western District of Oklahoma Sanford C. Coats.
Sean Patrick O'Brien, 38, of Lawton, Okla., was sentenced by U.S. District Judge Stephen P. Friot in the Western District of Oklahoma. In addition to his prison term, O'Brien was sentenced to serve three years of supervised release and ordered to pay $37,500 in restitution to the United States.
O'Brien pleaded guilty on Nov. 9, 2012, to a criminal information charging him with two counts of conspiracy to accept illegal gratuities.
According to court documents, O'Brien, formerly a commissioned officer in the U.S. Army, assisted in the contracting process of U.S. government funds, and was therefore considered a public official. It is a violation of federal law for officers to accept gratuities from contractors dependent upon them for contracts.
According to court documents, from mid-2008 through January 2009, O'Brien, with the assistance of two alleged co-conspirators, unlawfully sought, received and accepted illegal gratuities for helping Iraqi contractors in connection with U.S. government. O'Brien accepted approximately $37,500 in cash payments and jewelry while stationed in Iraq, which he has repatriated to the United States. One of the alleged co-conspirators also offered O'Brien a vacation to a private island.
This case was prosecuted by Assistant U.S. Attorney Scott E. Williams of the Western District of Oklahoma and by Special Trial Attorney Mark Grider of the Justice Department Criminal Division's Fraud Section, on detail from the Special Inspector General for Iraq Reconstruction (SIGIR). The case was investigated by the Defense Criminal Investigative Service, the Major Procurement Fraud Unit of the U.S. Army Criminal Investigation Command, and SIGIR.
Former North Carolina Resident Charged with Fraud in Connection with Purchase of York County Property SentencedRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Caitlin Lucille Walls Smith, age 37, formerly of Wilmington, NC, was sentenced on March 28 by U.S. District Court Judge Sylvia H. Rambo to a 30-month term of imprisonment and three years of supervised release. Judge Rambo further ordered that Smith pay $437,000 in restitution.
Caitlin Smith was indicted in February 2012 with violations of the federal wire fraud statute. She pleaded guilty in November 2012.
According to United States Attorney Peter J. Smith, Caitlin Smith was a high school graduate who never completed her college education. In July 2008, she applied for a position as an officer in the nuclear program of the United States Navy.
In her application and in subsequent interviews, questionnaires and other documents, Smith falsely represented that she had a Bachelor of Science degree from the University of North Carolina, a Masters of Science in Chemistry from Duke University, a Doctor of Philosophy in Chemical Engineering and a Doctor of Philosophy in Environmental Engineering from the University of Delaware. She had never been awarded any of these degrees by any of the institutions.
Smith was accepted into the Navy nuclear program with the rank of Ensign. Using her fraudulently-acquired military status, she applied for a U.S. Department of Veterans Affairs-backed loan in September 2010 by calling PNC Bank in Newark, Delaware, for the purpose of purchasing a property in York County, Pennsylvania.As part of the loan application process, Smith submitted forged and fraudulent bank statements and documents purporting to be from the United States Navy confirming her actual and anticipated income and assets. Smith also submitted a forged and fraudulent lease agreement purporting to have been signed by herself and a third party to demonstrate that her property in Delaware had been leased and was therefore not a liability to the defendant or to PNC Bank. The loan was backed by the Department of Veterans Affairs under its Loan Guarantee Program.
In November 2010, PNC Bank approved Smith’s loan based on the forged and fraudulent bank statements and documents purporting to be from the United States Navy confirming her actual and anticipated income and assets and wire transferred the loan amount of $437,423.92 from Kentucky to the defendant’s title company account at Metro Bank in Lemoyne, Pennsylvania. The fraudulently-acquired funds were used by the defendant to acquire the York County property.
In 2010, Smith was court-martialed by the Navy for false representations relating to her enlistment.
The case was investigated by the Office of the Inspector General for the U.S. Department of Veterans Affairs and the Naval Criminal Investigative Service. The case was prosecuted by Assistant U.S. Attorney Gordon Zubrod.
Former Jefferson Parish, Louisiana, Sheriff’s Deputy Indicted for Civil Rights, Bank Fraud, Computer Fraud, Aggravated Identity Theft and Obstruction of Justice ViolationsRead the Press Release
An indictment against former Jefferson Parish, La., Sheriff’s Deputy Mark Hebert, 48, was announced today by Roy L. Austin Jr., Deputy Assistant Attorney General for the Civil Rights Division; Dana J. Boente, Acting U.S. Attorney for the Eastern District of Louisiana; Michael J. Anderson, Special Agent in Charge of the FBI New Orleans Field Office; and Sheriff Newell Normand from the Jefferson Parish Sheriff’s Office.
According to the indictment, Hebert engaged in a scheme to defraud J.P. Morgan Chase Bank from Aug. 2, 2007, until Nov. 21, 2007. The scheme began when Hebert, in his capacity as a Jefferson Parish Sheriff’s Deputy, responded to an automobile accident involving Albert Bloch and stole, among other things, Bloch’s Visa debit card. The indictment alleges that Hebert then used that debit card to make unauthorized purchases of merchandise and to withdraw funds from Bloch’s Chase Bank account using ATMs. After Chase Bank cancelled the debit card due to Bloch filing a dispute with the bank, Hebert continued his scheme to defraud by negotiating and attempting to negotiate forged checks drawn on Bloch’s Chase Bank account. It is also alleged that Hebert obtained the replacement debit card that Chase Bank sent to Bloch and used that card to make unauthorized transactions at ATMs.
The indictment charges that Hebert, while acting under color of law, deprived Bloch of his constitutional rights by seizing and converting funds that Bloch had on deposit with Chase Bank. In addition, the indictment alleges that Hebert committed 48 counts of bank fraud from Aug. 2, 2007, to Nov. 21, 2007. The indictment also charges Hebert with four counts of computer fraud for accessing the National Crime Information Center to obtain non-public information about Bloch in furtherance of his scheme to defraud. Furthermore, Hebert is charged with two counts of aggravated identity theft for using a means of identification of Bloch during, and in relation to, the bank fraud violations. Finally, Hebert is charged with five counts of obstruction of justice for knowingly concealing and covering up physical evidence with the intent to impede any investigation into the underlying criminal allegations against Hebert.
For each of the 48 counts of bank fraud, Hebert faces a statutory maximum term of imprisonment of 30 years . For each of the five counts of obstruction of justice, Hebert faces a statutory maximum term of 20 years in prison. For each of the four counts of computer fraud, Hebert faces a statutory maximum term of five years in prison. For each of the two counts of aggravated identity theft, Hebert faces a term of two years in prison. For the count charging a civil rights violation, Hebert faces a statutory maximum penalty of one year in prison .
An indictment is merely a charge and the defendant is presumed innocent unless proven guilty beyond a reasonable doubt.
The investigation was conducted by the Jefferson Parish Sheriff’s Office Detective’s Bureau and the FBI. The case is being prosecuted by Assistant U.S. Attorney Steve Parker and Civil Rights Division Trial Attorney Shan Patel.
Former Jefferson Parish Sheriff’s Deputy, Mark Hebert, Indicted for Civil Rights, Bank Fraud, Computer Fraud, Aggravated Identity Theft, and Obstruction of JusticeRead the Press Release
An indictment against former Jefferson Parish Sheriff’s Deputy MARK HEBERT, age 48, was announced today by Roy L. Austin Jr., Deputy Assistant Attorney General for the Civil Rights Division; Dana J. Boente, United States Attorney for the Eastern District of Louisiana; Michael J. Anderson, Special Agent in Charge of the FBI New Orleans Field Office; and Newell Normand, Jefferson Parish Sheriff.
According to the indictment, HEBERT engaged in a scheme to defraud J.P. Morgan Chase Bank from August 2, 2007, until November 21, 2007. The scheme began when HEBERT, in his capacity as a Jefferson Parish Sheriff’s Deputy, responded to an automobile accident involving Albert Bloch and stole, among other things, Bloch’s VISA debit card. The indictment alleges that Hebert then used that debit card to make unauthorized purchases of merchandise and to withdraw funds from Bloch’s Chase Bank account using ATMs. After Chase Bank cancelled the debit card due to Bloch filing a dispute with the bank, HEBERT continued his scheme to defraud by negotiating and attempting to negotiate forged checks drawn on Bloch’s Chase Bank account. It is also alleged that HEBERT obtained the replacement debit card that Chase Bank sent to Bloch and used that card to make unauthorized transactions at ATMs.
The indictment charges that HEBERT, while acting under color of law, deprived Bloch of his Constitutional rights by seizing and converting funds that Bloch had on deposit with Chase Bank. In addition, the indictment alleges that HEBERT committed 48 counts of bank fraud from August 2, 2007, to November 21, 2007. The indictment also charges HEBERT with four counts of computer fraud for accessing the National Crime Information Center to obtain non-public information about Bloch in furtherance of his scheme to defraud. Furthermore, HEBERT is charged with two counts of aggravated identity theft for using a means of identification of Bloch during, and in relation to, the bank fraud violations. Finally, HEBERT is charged with five counts of obstruction of justice for knowingly concealing and covering up physical evidence with the intent to impede any investigation into the underlying criminal allegations against HEBERT.
For each of the 48 counts of bank fraud, HEBERT faces a statutory maximum term of imprisonment of 30 years and a $1,000,000 fine. For each of the five counts of obstruction of justice, HEBERT faces a statutory maximum term of 20 years in prison and a fine of $250,000. For each of the four counts of computer fraud, HEBERT faces a statutory maximum term of five years in prison and a $250,000 fine. For each of the two counts of aggravated identity theft, HEBERT faces a term of imprisonment of two years in prison and a $250,000 fine. For the count charging a civil rights violation, HEBERT faces a statutory maximum penalty of one year in prison and a $100,000 fine.
An indictment is merely a charge and the defendant is presumed innocent unless proven guilty beyond a reasonable doubt.
The investigation was conducted by the Jefferson Parish Sheriff’s Office Detective’s Bureau and the FBI with assistance from the St. Tammany Parish Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Steve Parker and Civil Rights Division Trial Attorney Shan Patel.
(Download Indictment )
Former Investment Adviser Pleas Guilty to FraudRead the Press Release
BOSTON – A Foxboro man was convicted today of fraud and tax evasion in connection with the operation of his financial planning service that targeted senior citizens.
John A. Picini, 54, pleaded guilty before U.S. District Judge Joseph L. Tauro to mail fraud and tax evasion charges. The statutory maximum penalty is 20 years in prison, followed by three years of supervised release and a fine of $250,000 or twice the gross gain/loss, whichever is greater. Sentencing is scheduled for July 9, 2013.
Picini operated a business called the Center for Senior Financial Planning in North Attleboro. Picini targeted senior citizen investors as clients and represented to them that he was knowledgeable in the protection and conservation of their assets. Beginning around 2006, Picini repeatedly advised various clients to liquidate retirement funds invested in annuities or other tax deferred investment vehicles and to re-invest these funds in purported accounts supposedly managed by Picini. Contrary to his representations, Picini did not invest these monies but instead used his clients’ funds for his own personal purposes.
In addition to depleting and spending his clients’ investments, Picini also charged his clients thousands of dollars in fees for nonexistent investments and for purchasing annuities for which he had already been compensated via commissions from the sellers of the annuities. Picini’s scheme also cost his clients thousands of dollars in fees and penalties for cashing out their legitimate investments, based on his directives. Furthermore, Picini filed false individual income tax returns with the IRS which substantially understated his true income.
United States Attorney Carmen M. Ortiz; Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistance was also provided by the Massachusetts Securities Division. This case is being prosecuted by Assistant U.S. Attorney Holik of Ortiz’s Economic Crimes Unit.
Former Doctor Pleads Guilty in $19+ Million Health Care Fraud SchemeRead the Press Release
HOUSTON – Donald Gibson II, 56, of Richmond, has been convicted of conspiracy to commit health care fraud relating to medically unnecessary diagnostic testing and physical therapy, United States Attorney Kenneth Magidson announced today.
Gibson entered a plea of guilty just minutes ago, admitting he conspired to commit health care fraud along with co-defendant, Sunday Joseph Edem, 53, also of Richmond.
Gibson ordered, prescribed and authorized medically unnecessary diagnostic tests and other procedures which included allergy tests, pulmonary function tests, vestibular tests, urodynamic tests and physical therapy, among others. These services were then billed to Medicare and Medicaid for payment under Gibson’s billing number.
From January 2007 through January 2012, Gibson caused more than $19.4 million in medical claims to the Medicare and Texas Medicaid Programs. As a result, Medicare deposited approximately $8.5 million into a bank account owned and controlled by Gibson.
Edem operated medical clinics under the names of other individuals to conceal his financial interest in the businesses. Edem and Gibson conspired with one another to cause the submission of false claims to the Medicare and Medicaid programs and share in the proceeds. Gibson and Edem paid patient recruiters for referring Medicare/Medicaid beneficiaries and also paid Medicare beneficiaries for showing up at the medical clinics.
Gibson is set for sentencing on July 1, 2013, at which time he faces up to 10 years in federal prison and a possible $250,000 fine.
Edem also pleaded guilty to the same charge on Feb. 25, 2013. He is scheduled to be sentenced on May 28, 2013.This case is the result of a joint investigation involving multiple federal and state agencies including agents and investigators of the U.S. Department of Health and Human Services – Office of Inspector General, Railroad Retirement Board, Secret Service, Drug Enforcement Administration, FBI and the Texas Attorney General’s Medicaid Fraud Control Unit. Special Assistant U.S. Attorney Justin Blan and Assistant U.S. Attorney Andrew Leuchtmann are prosecuting this case.
Easthampton Man Sentenced for CounterfeitingRead the Press Release
BOSTON - An Easthampton man was sentenced today in U.S. District Court in Springfield, for counterfeiting United States currency.
Shayne Pancione, 36, was sentenced by U.S. District Judge Michael A. Ponsor to 33 months in prison, to be followed by three years of supervised release. Pancione pleaded guilty to manufacturing and distributing counterfeit currency on Feb. 14, 2013.Between Aug. 28, 2011, and Sept. 6, 2011, Pancione manufactured and distributed counterfeit 20 dollar bills in Easthampton and Southampton.
United States Attorney Carmen M. Ortiz; Steven D. Ricciardi, Special Agent in Charge of the United States Secret Service; and Chief Bruce McMahon of the Easthampton Police Department made the announcement today. The case was prosecuted by Assistant U.S. Attorney Kevin O'Regan of Ortiz’s Springfield Office.
East St. Louis Man Sentenced on Firearm OffenseRead the Press Release
Todd D. Turner, 26, of East St. Louis, IL, was sentenced in federal district court on April 1, 2013, to 24 months in prison, to be followed by two years supervised release, a $100 special assessment, and a $300 fine, for unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Facts presented in court revealed that on February 19, 2012, law enforcement officials stopped a vehicle driven by Turner. Officers learned that Turner was wanted on warrants and that he possessed no valid driver’s license. When placed under arrest, Turner admitted having a firearm in the vehicle.
The case resulted from the efforts of the WAVE (Working Against Violent Elements) Task Force, which focuses its efforts on combating violent crime in East St. Louis, Washington Park, and surrounding communities. The WAVE Task Force receives financial support through the Department of Justice’s Project Safe Neighborhoods (PSN) initiative, a nationwide federal program which endeavors to address gun-related violence.
This investigation was conducted by the WAVE Task Force, and the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Detroit Drug Dealer Pleads Guilty to Federal ChargesRead the Press Release
HUNTINGTON, W.Va. – A Detroit drug dealer who stored firearms, illegal narcotics and cash at his Huntington residence pleaded guilty to federal drug charges, announced U.S. Attorney Booth Goodwin.
Dwjuan Strickland, also known as “Freak” and “Mitch,” 36, of Detroit, pleaded guilty to possession with intent to distribute heroin and crack cocaine. Strickland entered into a guilty plea on April 1 in Huntington federal court. On October 14, 2011, members of the Huntington Violent Crime and Drug Task Force conducted a search of the defendant’s 24th Street residence in Huntington that he shared at the time with convicted felon Lawanna D. Hamlin. During the execution of the search warrant, law enforcement seized various items including: 9.52 grams of crack cocaine, .45 grams of heroin, three digital scales, two .40 caliber handguns, and approximately $577 cash.
Prior to executing a search warrant on the defendant’s residence, Huntington Drug Task Force agents conducted several controlled drug purchases of 50 grams of heroin from Strickland and his associate Hamlin.
Lawanna D. Hamlin, 34, of Huntington, was previously sentenced in July 2012 to 2 ½ years in federal prison for her role in a heroin distribution scheme led by Strickland.
Strickland faces up to 20 years in prison and a $1 million fine when he is sentenced on July 1, 2013 by Chief United States District Judge Robert C. Chambers.
The Huntington Violent Crime and Drug Task Force conducted the investigation. Assistant United States Attorney Gregory McVey is in charge of the prosecution.
Carrington Man Sentenced on Child Pornography ChargesRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on April 1, 2013, Christopher Emly of Carrington, N.D., was sentenced before U.S. District Judge Ralph R. Erickson on charges of possession and receipt of materials involving the sexual exploitation of minors.
Judge Erickson sentenced Emly to 19 years’ imprisonment to be followed by a lifetime of supervised release. Emly was ordered to pay a $400 special assessment to the Crime Victim's Fund. Restitution will be determined at a later date.
Emly, 25, was found guilty by a 12-person jury on Nov. 13, 2012, of one count of receipt of materials involving the sexual exploitation of minors and three counts of possession of materials involving the sexual exploitation of minors. Judge Erickson presided over the five-day trial.
The case came to the attention of law enforcement after a North Dakota Bureau of Criminal Investigation agent downloaded child pornography files from a computer utilizing an internet protocol (IP) address originating in Carrington, N.D. The IP address was assigned to Emly’s residence which was eventually searched by law enforcement pursuant to a state search warrant.
During the search, state and federal agents recovered numerous electronic media containing hundreds of files depicting the graphic sexual abuse of children, including images depicting children as young as one and two years old.
The incidents occurred from October 2010 through Nov. 9, 2010, in the District of North Dakota.
The case was investigated by the North Dakota Bureau of Criminal Investigation and Homeland Security Investigations.
Assistant U.S. Attorneys Jennifer Klemetsrud Puhl and Nick Chase prosecuted the case.
This case was brought as a part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims.
For more information about Project Safe Childhood, visit www.projectsafechildhood.gov.California Accountant Charged with Aiding and Assisting the Preparation of False Tax ReturnsRead the Press Release
A federal grand jury has returned an indictment Thursday charging Jeffery Deshon Applewhite, aka Jeffery Donald Mason, of Los Angeles, with aiding and assisting the preparation and presentation of false and fraudulent federal income tax returns, the Justice Department and Internal Revenue Service (IRS) announced.
According to the indictment, from 2006 through 2011, Applewhite, a certified public accountant who owned and operated tax preparation businesses, including Applewhite and Company, CPA and Mason Financial Services Inc., aided and assisted in the preparation and presentation of false and fraudulent federal income tax returns containing claims for deductions and credits to which his clients were not entitled. Some counts allege that Applewhite used another individual’s preparer tax identification number without permission in preparing false federal income tax returns.
The maximum penalty for aiding and assisting the preparation of false claims is three years in prison and a fine of $250,000 for each count of conviction. The maximum penalty for each count of identity fraud is fifteen years and a fine of $250,000.
This case is being investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Charles O’Reilly and Erin Mellen of the Justice Department’s Tax Division are prosecuting the case.
An indictment contains only allegations against an individual and, as with all defendants, must be presumed innocent unless and until proven guilty beyond a reasonable doubt.
Businessman Michael Forlani Sentenced to Eight Years in PrisonRead the Press Release
Cleveland-area businessman Michael Forlani was sentenced to more than eight years in prison after previously pleading guilty to RICO conspiracy and other crimes related to bribes Forlani paid to public officials in exchange for help getting contracts for companies he owned or controlled, federal law enforcement officials said today.
U.S. District Judge Sara Lioi sentenced Forlani, age 55, of Gates Mills, to 97 months in prison. She also ordered him to forfeit $900,000 and pay $136,251 in restitution -- $95,129 to Cuyahoga County, $37,144 to the Maple Heights City School District and $3,978 to Metro Health Systems.
Forlani pleaded guilty last year to RICO conspiracy, Hobbs Act violations, conspiracy to commit wire fraud and honest services wire fraud, and other charges.
Forlani was president and majority owner of Doan Pyramid LLC, a minority owner in Neteam, AVI, the sole member of Veterans Development, LLC, a member of the board of managers for Veterans Development Domiciliary, LLC, the sole member of Wade Park Retail, LLC, and the sole owner fo Deep Three Partners, LLC, according to court documents.
Between 2002 and 2009, Forlani conspired with Jimmy Dimora, Santina Klimkowksi, John Carroll and other public officials in exchange for those officials using their positions to benefit Forlani and his associated companies, according to court documents.
Those actions included awarding and executing public business, expediting and influencing official actions pending before public agencies and other actions, according to court documents.
This included the Cuyahoga County Commissioners voting to award Doan a $941,000 contract to install emergency generators at the Justice Center; requesting and obtaining Dimora’s assistance related to contracts at the Juvenile Justice Center project; getting Dimora’s assistance related to influencing board members on a RTA contract valued at more than $1.1 million, the appointment of a member to the Port Authority Board, getting a county economic development loan, getting no-bid contracts at Maple Height City Schools, and construction contracts and subcontracts at MetroHealth Medical Center, among other actions, according to court documents
In return, Forlani and his associated companies provided things of value to the public officials, such as discounted home improvements, installation of televisions and an outdoor audio/visual system, loge seats for concerts, sporting event tickets, meals and drinks, and other things of value, according to court documents.
The case was prosecuted by Assistant United States Attorneys Antoinette T. Bacon, Henry DeBaggis and Nancy L. Kelley following an investigation by the FBI, IRS – Criminal Investigation and the Department of Veterans Affairs – Office of Inspector General.
Bronx Man Pleads Guilty in Manhattan Federal Court to the Sexual Exploitation of A Child and Child Pornography-Related ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and James T. Hayes, Jr., the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), announced today that NARENDRA TULSIRAM pled guilty in Manhattan federal court to sexually exploiting a child, transporting child pornography, and possessing child pornography. TULSIRAM, who has been in federal custody since his arrest in this case on January 11, 2012, pled guilty today before U.S. District Judge J. Paul Oetken.
Manhattan U.S. Attorney Preet Bharara said: “The depraved acts that Narenda Tulsiram committed against his 13-year-old victim brought an abrupt end to her childhood, and then he went even further – using pictures of the sexual abuse he forced her to endure in a campaign of extortion. Nothing can reclaim what Tulsiram stole from his victim, but we hope that his guilty plea and the time he will spend in jail bring some measure of closure.”
ICE HSI Special Agent-in-Charge James T. Hayes, Jr. said: “Narendra Tulsiram shamelessly sexually exploited a child for nearly five years. HSI New York will continue to work with Federal and state prosecutors to arrest and prosecute predators who target young children."
According to the Complaint, the Superseding Indictment, other court documents, and statements made at the defendant’s plea proceeding:
From 2006 through September 2011, TULSIRAM sexually abused a female minor (the “Victim”). The abuse began when the Victim was 13-years old. From approximately 2008 through September 2011, TULSIRAM also took sexually explicit photographs chronicling his abuse of the Victim. In November 2011, after the Victim resisted TULSIRAM’s requests for additional sexual encounters, he used his e-mail account to send sexually explicit photographs of the Victim to the Victim’s e-mail account. In those e-mails, TULSIRAM threatened to send the sexually explicit photographs of the Victim to others, including her family, in an effort to get her to accede to his demands.
After TULSIRAM’s arrest, search warrants were executed for his cell phone and e-mail account. Forensic analysis of TULSIRAM’s cell phone recovered photographs depicting the Victim, and in some instances, the Victim and TULSIRAM, engaging in sexually explicit conduct. Forensic analysis of TULSIRAM’s cell phone also recovered threatening e-mails sent from TULSIRAM’s e-mail account to the Victim attaching the sexually explicit photographs of the Victim.
TULSIRAM, 50, of the Bronx, New York, pled guilty to two counts of sexual exploitation of a minor, one count of possessing child pornography, and one count of transporting child pornography. He faces a mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison for each of the sexual exploitation counts, a maximum sentence of 10 years in prison for the child pornography possession count, and a mandatory minimum sentence of 5 years in prison and a maximum sentence of 20 years in prison for the transportation of child pornography count. He is scheduled to be sentenced by Judge Oetken on September 6, 2013 at 2:30 p.m.
Mr. Bharara praised the outstanding investigative work of ICE HSI and the New York City Police Department.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Kristy J. Greenberg, Rahul Mukhi and Adam Fee are in charge of the prosecution.
Suspected child sexual exploitation or missing children may be reported to the National Center for Missing and Exploited Children, an Operation Predator partner, at 1-800-843-5678 or http://www.cybertipline.com.
Bank FraudRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Thanh Quoc Hoang, age 49, a resident of Macon, Georgia, was sentenced on March 28, 2013, on six counts of Bank Fraud against American Express and Fleet Credit Card Services, in violation of Title 18, United States Code, Section 1344, before the Honorable C. Ashley Royal, United States District Court, Macon, Georgia after being found guilty by a jury trial on August 28, 2012.
Mr. Hoang was sentenced to twenty-eight months imprisonment, to be followed by five years supervised release, a mandatory assessment fee of $600.00. Mr. Hoang was ordered to pay restitution in the amount of $25,000.00.
Mr. Hoang devised a scheme to defraud merchants and credit card companies in obtaining goods, services and cash by presenting checks drawn on his personal checking account at Security Bank of Bibb County. Mr. Hoang knew that there were insufficient funds for payment to these various businesses and credit card companies. As a result of his scheme to defraud he obtained more than $200,000.00 worth of cash, goods, and services.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Verda M. Colvin.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney’s Office at (478) 621-2601.
31 March 2013
Credit Card Fraud Conspiracy Charges Unsealed Today Against Two Arrested at Atlantic City’s Borgata CasinoRead the Press Release
CAMDEN, N.J. - Complaints charging two men with credit card fraud conspiracy were unsealed today in federal court in New Jersey after the pair, who have allegedly attempted to fraudulently charge more than $500,000 using stolen account numbers, were arrested early Saturday, March 29, 2014, at the Borgata Casino, in Atlantic City, N.J., U.S. Attorney Paul J. Fishman announced.
Tracey Coleman, 46, of Rosedale, N.Y., and Wanell Wallace, 23, of Fresh Meadow, N.Y., are each charged with one count of conspiracy to produce, use, and traffic in one or more counterfeit access devices, with intent to defraud, in a manner affecting interstate commerce; and one count of conspiracy to do so during any one-year period and obtaining $1,000 or more.
Both defendants are expected to appear this afternoon before U.S. Magistrate Judge Joel Schneider in Camden federal court.
According to the documents filed in this case and statements made in court: Coleman and Wallace fraudulently obtained funds, which were deposited into American Express accounts in their names, by using numerous credit card account numbers issued by Capital One Bank. Coleman and Wallace fraudulently obtained the numbers, which Wallace would then use to purchase prepaid debit cards in CVS Caremark drug stores throughout the New Jersey area. Those prepaid debit cards – or “Vanilla Reload” cards – were used to deposit funds into the American Express accounts.
Fraudulent transactions in Wallace’s name – consisting of both attempted transactions and successful transactions – are estimated at more than $500,000 during the period between April 2013 and the present. More than $50,000 in such transactions was conducted in March 2014 alone.
Each of the counts with which each defendant is charged carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Cynthia Wofford with the ongoing investigation.
The government is represented by Assistant U.S. Attorney Justin C. Danilewitz of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the complaints are merely accusations and the defendants are presumed innocent unless and until proven guilty.
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Defense counsel:Tracey A. Coleman: Assistant Federal Public Defender Lori Koch Esq., Camden
Wanell Wallace: Edward Borden Esq., Cherry Hill, N.J.Coleman, Tracey Complaint
Wallace, Wanell Complaint
29 March 2013
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana—The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Andres Garcia, 56, of Hoopeston, Illinois, a defendant in the case US v Patlan et al., pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of conspiracy to distribute marijuana.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 6/20/13.These charges were filed as a result of an investigation by the Drug Enforcement Administration.This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
Harry Kiste, 55, of Elkhart, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of failure to register as a sex offender.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 6/27/13.These charges were filed as a result of an investigation by the United States Marshal’s Service.This case is being prosecuted by Assistant United States Attorney John Maciejczyk.
Demerius Shaw, 20, of South Bend, Indiana, pled guilty before District Judge Robert Miller, Jr. to the felony offense of racketeering and discharging a firearm during a crime of violence.Sentencing has been set for 7/17/13.These charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation and the South Bend Police Department.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Jesus DeLeon, Sr., 50, of South Bend, Indiana, was sentenced by District Judge Robert Miller, Jr. to 4 months imprisonment and 2 years of supervised release, including 6 months of home detention, after pleading guilty to the felony offense of furnishing false written statements in the acquisition of a firearm.According to documents filed by the government in this case, Deleon Sr. straw purchased an IAC Regent .45 caliber pistol for Oscar Ruelas. In particular, Deleon Sr. bought this firearm from Midwest Gun Exchange in Mishawaka, Indiana while falsely stating on the “Firearms Transaction Record” for over-the counter-firearms transactions (ATF Form 4473) that the firearm was for Deleon Sr. when in fact the firearm was really being purchased for and at the behest of Oscar Ruelas, a trafficker in controlled substances.Police recovered the firearm at the home of Ruelas in July 2012 when a search warrant was executed there. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the South Bend Police Department and the MSOS.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana—The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS:
Brian Levesque, 27, of Gary, Indiana, was sentenced by Chief Judge Philip Simon to 46 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of possession with the intent to distribute crack cocaine.According to documents filed by the government in this case, investigators executed a search warrant at the defendant’s residence and recovered a High-Point brand .45 caliber loaded pistol, baggies of crack cocaine, marijuana and a digital scale. This case was the result of an investigation by the Federal Bureau of Investigation GRIT Task Force.This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Fort Wayne, Indiana—The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Walter Ridley, 32, of Fort Wayne, Indiana, pled guilty before Magistrate Judge Roger Cosbey to the felony offense of possession of a firearm by a convicted felon.Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. These charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department.This case is being prosecuted by Assistant United States Attorney Lesley Miller Lowery.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Jarrod Vroom, 39, of Fort Wayne, Indiana, a defendant in the case US Bridges et al., was sentenced by District Judge Theresa Springmann to 60 months imprisonment and 4 years of supervised release after pleading guilty to the felony offense of possession with the intent to distribute marijuana.This case was the result of an investigation by the Drug Enforcement Administration, the Allen County Sheriff‘s Department and the Indiana State Police.This case was prosecuted by Assistant United States Attorney Tina Nommay.
Otaimond McFarthing, 26, of Fort Wayne, Indiana, was sentenced by District Judge Theresa Springmann to 8 months imprisonment (time served) and 2 years of supervised release after pleading guilty to the felony offense of distribution of marijuana.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Jason Davis, 25, of Fort Wayne, Indiana, was sentenced by District Judge Theresa Springmann to 27 months imprisonment and 1 year of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department.This case was prosecuted by Assistant United States Attorney Lesley Miller Lowery.
UPS Agrees to Forfeit $40 Million in Payments from Illicit Online Pharmacies for Shipping ServicesRead the Press Release
SAN FRANCISCO - United Parcel Service, Inc. (“UPS”) and the United States Attorney’s Office for the Northern District of California (“USAO-NDCA”) entered into a Non-Prosecution Agreement (“NPA”) today in which UPS agreed to forfeit $40 million in payments it has received from illicit online pharmacies and to implement a compliance program designed to ensure that illegal online pharmacies will not be able to use UPS’s services to distribute drugs, U.S. Attorney Melinda Haag, Drug Enforcement Administration (DEA) Administrator Michele M. Leonhart, and Food and Drug Administration (FDA) Director of the Office of Criminal Investigations John Roth announced.
UPS has cooperated fully with the investigation and has already taken steps to ensure that illegal Internet pharmacies can no longer use its services to ship drugs. These voluntary improvements will be strengthened by the compliance program UPS will implement as a condition of this NPA.
U.S. Attorney Melinda Haag commented: “We are pleased with the steps UPS has taken to stop the use of its shipping services by illegal on-line pharmacies. Good corporate citizens like UPS play an important role in halting the flow of illegal drugs that degrade our nation’s communities. We are hopeful that the leadership displayed by UPS through this compliance program will set the standard for the parcel delivery industry and will materially assist the federal government in its battle against illegal Internet pharmacies.”
From 2003 through 2010, UPS was on notice, through some of its employees, that Internet pharmacies were using its services to distribute controlled substances and prescription drugs without valid prescriptions in violation of the law. Internet pharmacies operate illegally when they distribute controlled substances and prescription drugs that are not supported by valid prescriptions. A prescription based solely on a customer’s completion of an on-line questionnaire is not valid. Despite being on notice that this activity was occurring, UPS did not implement procedures to close the shipping accounts of Internet pharmacies.
“DEA is aggressively targeting the diversion of controlled substances, as well as those who facilitate their unlawful distribution,” said DEA Administrator Michele M. Leonhart. “This investigation is significant and DEA applauds UPS for working to strengthen and enhance its practices in order to prevent future drug diversion.”
John Roth, Director of the FDA Office of Criminal Investigations added: “The results of this investigation will prompt a significant transformation of illicit internet pharmacy shipping and distribution practices, limiting the chances of potentially unapproved, counterfeit or otherwise unsafe prescription medications from reaching U.S. consumers. The FDA is hopeful that the positive actions taken by UPS in this case will send a message to other shipping firms to put public health and safety above profits.”
Kirstin M. Ault is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Legal Technician Rawaty Yim. The prosecution is the result of an investigation by the Financial Investigative Team of the DEA, with the assistance of the FDA Office of Criminal Investigations. This investigation is part of USAO-NDCA’s Health Care Fraud program and was initiated as an investigation with the Organized Crime and Drug Enforcement Task Force. Substantial assistance was provided by the North Carolina Board of Pharmacy.
(UPS signed NPA )
(UPS Attachment A )
(UPS Attachment B )
Three Sentenced in Alabama Stolen Identity Refund Fraud ConspiracyRead the Press Release
Montgomery, Alabama - Mary Bennett, of Wetumpka, Narendrakumar Patel of Millbrook, of and Eugenia Burks, of Montgomery, were sentenced for their roles in an identity theft and tax fraud scheme. Bennett was sentenced today to 75 months in prison, Patel was sentenced yesterday to 24 months in prison, and Burks was sentenced yesterday to 18 months in prison. Bennett had previously pleaded guilty to conspiracy to commit mail and wire fraud, as well as aggravated identity theft, while Burks also had pleaded guilty to conspiracy. Patel pleaded guilty to forging state securities. Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally, Acting United States Attorney for the Middle District of Alabama Sandra J. Stewart, the U.S. Secret Service, and the Internal Revenue Service (IRS) made the announcement.
According to court documents, the defendants were part of a conspiracy to fraudulently obtain both federal income tax refunds as well as state income tax refunds from several different states by using stolen identities to file false tax returns. Fraudulently obtained refund checks were mailed to various addresses used by the conspiracy, while other refunds were obtained through direct deposits into numerous bank accounts controlled by the conspiracy. Bennett admitted to being the one responsible for actually filing the false tax returns and also to storing stolen identity information at her home. Some of the checks obtained by the scheme were cashed by Patel, the former owner of a check-cashing business, who admitted that he knowingly cashed the forged checks and shared in the proceeds.
“This case is another example of the punishment that will result from stealing people’s identities and fraudulently filing tax returns,” stated Acting U.S. Attorney Sandra Stewart. “If you steal people’s identities and file fraudulent tax returns, you will be caught and you will be punished.”
“These unscrupulous defendants thought they had figured out a clever scheme to thwart the IRS and steal from American taxpayers,” said Special Agent in Charge, Veronica Hyman-Pillot, IRS Criminal Investigation. “As the defendants in this case have learned, stealing from the American people will not be tolerated and you will be held accountable.”
The case was investigated by special agents of the United States Secret Service and the IRS - Criminal Investigation with the help of the Alabama Alcohol Beverage Control Board. Tax Division Trial Attorney Jason H. Poole and Assistant United States Attorney Todd Brown prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Three Charged with Conspiracy to Rob Upper Darby Business OwnerRead the Press Release
PHILADELPHIA - Three Philadelphia men are charged with conspiracy and Hobbs Acts robbery in a home invasion of the owner of an Upper Darby business, announced United States Attorney Zane David Memeger. A superseding indictment, filed yesterday, charges Jeramiah Stokes, 23, Tyreek Styles, 25, and Tyrone Styles, 24, all of Philadelphia, with the December 3, 2011 armed robbery of the owner of the Secane Deli and Grill in Upper Darby. According to the superseding indictment, the defendants and two other co-conspirators followed the owner home, forced their way into the home at gunpoint, and forced the business owner and the business owner’s family to give them money, some of which were the business proceeds of Secane Deli and Grill. The defendants are also charged with Hobbs Act robbery, and use, carrying, and discharging a firearm during a crime of violence. Defendant Tyrone Styles allegedly fired the gun as the three defendants and two co-conspirators fled the scene.
If convicted of all charges, each of the defendants faces a mandatory term of 10 years in prison, up to a life sentence, fines, supervised release, and a special assessment of $300.
The case was investigated by the Federal Bureau of Investigation and the Upper Darby Police Department. It is being prosecuted by Assistant United States Attorney Jennifer Chun Barry.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Three Charged in Scheme to Defraud BP Oil Spill Claims FundRead the Press Release
BIRMINGHAM – Federal prosecutors on Thursday charged three people as part of a conspiracy to fraudulently take money from funds established to pay claims from individuals and businesses harmed by the 2010 Deepwater Horizon oil spill in the Gulf of Mexico, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
In separate informations filed in U.S. District Court, the U.S. Attorney's Office charged CHRISTOPHER JARRIS ADDISON, 31, of Birmingham, CRYSTAL DAVIS BLACKMON, 27, of Bessemer, and ANDRE CLINTON DALE, 45, of Mobile, with conspiring in 2011 to devise a scheme to defraud the Gulf Coast Claims Facility. Combined, the three defendants were paid nearly $175,000 from the oil spill claims funds. All three defendants have signed plea agreements with the government expressing their intention to plead guilty to the charges.
"The trust fund was designed to help remedy the damage done by the disastrous BP oil spill in 2010," Vance said. "We are going to put criminals who fraudulently divert those funds from the victims of the oil spill in jail," she said.
British Petroleum, which owned the Macondo oil well where the Deepwater Horizon drilling rig exploded, established the Gulf Coast Claims Facility in June 2010 for the purpose of administering and settling claims resulting from the oil spill disaster. A subsidiary of BP established the Deepwater Horizon Oil Spill Trust Fund in August 2010 to pay certain types of claims and expenses from the oil spill, including claims settled through the GCCF.
Addison, Blackmon and Dale all are charged with independently agreeing to provide their Social Security numbers and bank account information to individuals, who are not named in the charging documents, so that those individuals could file fraudulent claims for lost wages to the GCCF. After the fraudulent claims were paid, Addison, Blackmon and Dale each returned part of the money to the individuals who recruited them to participate in the scheme, according to the informations and plea agreements.The GCCF paid Addison $77,942 from the Deepwater Horizon Oil Spill Trust Fund on Aug. 24, 2011, according to the court documents. On Aug. 25, 2011, Addison gave the bulk of the payment to the two individuals who recruited him to the conspiracy, according to the documents.
Blackmon was recruited into the conspiracy by her cousin, who is not named in the court documents. She provided him with her bank account and personal identifying information and on Aug. 2, 2011, received about $47,878 from the GCCF, according to her information and plea agreement. She paid about $35,533 of that to her cousin, according to the documents.
Dale received about $47,678 in claim funds on July 20, 2011. On July 26, 2011, according to his information and plea agreement, he paid $15,000 to one of the individuals who recruited him into the scheme.
The FBI investigated these cases. Assistant U.S. Attorney Henry Cornelius is prosecuting the cases.
Three Anchorage Residents arraigned on Federal Drug Conspiracy IndictmentRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that three Anchorage men were arraigned on charges involving an alleged drug trafficking conspiracy, distribution of controlled substances, attempt to possess with intent to distribute heroin, and possession of a firearm in furtherance of drug trafficking.
Jared Thomas Bowers, 23, Christopher Thomas Mejia, 24, and Rhadames Marmolejos Jr., 20, entered not guilty pleas to the eleven-count indictment.
The indictment charges all three defendants with participating in a conspiracy to distribute heroin. Mejia and Bowers face additional charges for possession of a firearm in furtherance of a drug trafficking crime and Marmolejos Jr. has been charged with eight counts of distribution of a controlled substance.
Special Assistant United States Attorney Erin W. Bradley, who presented the case to the grand jury, indicated that the law provides for a mandatory minimum sentence of ten years in prison, with a potential life sentence for a conviction of drug trafficking conspiracy. Each defendant also faces a potential fine of up to ten million dollars. Possession of a firearm in furtherance of drug trafficking carries a mandatory minimum sentence of five years in prison with a potential life sentence, and a fine of up to $250,000. The remaining charges in the indictment carry maximum sentences of twenty years in prison and fines of up to one million dollars. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the individual defendants.
Ms. Loeffler commends the Drug Enforcement Administration for the investigation of this case. All defendants remain incarcerated pending trial in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.Thomas Roderick Yallup, Jr. Arraigned and Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on March 28, 2013, before U.S. Magistrate Judge Keith Strong, THOMAS RODERICK YALLUP, JR., a 30-year-old resident of Box Elder and an enrolled member of the Rocky Boy's Indian Reservation, was arraigned and pled guilty to assault resulting in serious bodily injury. Sentencing is set for July 25, 2013.
In an Offer of Proof filed by Assistant U.S. Attorneys Chad C. Spraker and Danna R. Jackson, the government stated it would have proved at trial the following:
On October 15,2011, within the exterior boundaries of the Rocky Boy's Indian Reservation, YALLUP assaulted "X.X." As a result of the assault, "X.X." was injured. The victim suffered bite marks, bruising throughout her body, and had pelvic pain so intense she had difficulty walking. "X.X." experienced extreme physical pain. She was in the emergency room for over five hours and was provided medication for her pain.
YALLUP faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by the Federal Bureau of Investigation.
Statement of Manhattan U.S. Attorney Preet Bharara on the Indictment of Hedge Fund Portfolio Manager Michael Steinberg on Insider Trading ChargesRead the Press Release
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“As alleged, Michael Steinberg was another Wall Street insider who fed off a corrupt grapevine of proprietary and confidential information cultivated by other professionals who made their own rules to make money. With lightning speed in at least one case, Mr. Steinberg seized on the opportunity to cash in and tried to keep his crime quiet, as charged in the Indictment. As alleged, where once Mr. Steinberg answered only to his own rules, now he will have to answer to the rule of law, like so many others before him.”
Michael Steinberg Indictment Statement-US Attorney Preet Bharara Audio 3.29.13 (mp3)
Michael Steinberg Indictment Statement-US Attorney Preet Bharara Audio 3.29.13 (wav)South Carolina Men Sentenced to Lengthy Prison Terms in Credit Card Fraud CaseRead the Press Release
AUGUSTA, GA: JAEQUAN S. MALONE, 24, of Columbia, South Carolina, was sentenced earlier this week by United States District Court Judge J. Randal Hall to 48 months imprisonment for his involvement in a conspiracy to fraudulently possess and use credit, debit, and gift cards and electronically-stored account numbers, as well as equipment for making counterfeit cards. MALONE’s co-defendant, SHIKYM R. WILLIAMS, 25, also of Columbia, South Carolina, was sentenced on February 20, 2013 by the same judge to 72 months imprisonment.
Evidence presented at hearings in this case showed that, in the early morning of May 31, 2011, Taliaferro County Deputy Sheriff Lewis Blanchard pulled over a rental vehicle on Interstate 20 that MALONE, with WILLIAMS as his passenger, was driving 100 miles per hour from Columbia, South Carolina towards Atlanta, Georgia. A search of the vehicle revealed several credit, debit, and gift cards and a laptop computer and credit card encoder for making counterfeit cards. Also found in the vehicle was a loaded 9mm pistol. Further analysis of this evidence revealed over 350 electronically-stored credit and debit card numbers that belonged to other people.
United States Attorney Edward J. Tarver said, “Those who seek to live life in the fast lane using the stolen credit card numbers of innocent victims should take notice of the prison sentences for these defendants. This office works hand in hand with federal and local law enforcement to see that identity thieves serve hard time.”
In addition to the prison sentences, MALONE was ordered to pay restitution and WILLIAMS was ordered to pay a fine. Both men will serve three years of supervised release after they are released from prison. Regarding the length of the prison sentences, Tarver noted that there is no parole in the federal system.
Secret Service Special Agent Tom Norris and ATF Special Agent Ron Rhodes conducted the investigation of this case with assistance from the Taliaferro County Sheriff’s Office. Assistant United States Attorney David Stewart prosecuted the case. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Six Indicted on Federal Child Sex Trafficking ChargesRead the Press Release
Memphis, TN – Six individuals have been indicted on federal child sex trafficking charges, announced U.S. Attorney Edward L. Stanton III, United States Attorney for the Western District of Tennessee; Aaron Ford, Special Agent in Charge of the Memphis field office of the Federal Bureau of Investigation; and Toney Armstrong, Director of the Memphis Police Department.
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Those indicted are: Anthony Grandberry, 32, of Memphis; Orreco Lyons, also known as "Pico the Pimp," 32, of Memphis; Keith Gibson, also known as "Greedy" and "Pee-Wee," 43, of Union City, Tennessee; Vivian Briggs, also known as "Fortune" and "Kisses," 28, of Memphis; Tamara Ramsey, 37, of Memphis; and Falisha Edwards, 32, of Memphis.
Grandberry, Lyons, Gibson, Ramsey, and Edwards are charged with conspiracy to commit child sex trafficking. Gibson is also charged with child sex trafficking, as is Briggs. Briggs is additionally charged with use of a facility of interstate commerce to promote child sex trafficking.
The charges allege that on December 29, 2012, Lyons gave a 14-year-old girl to Grandberry as partial payment for Grandberry's assistance in an unrelated matter. Grandberry then paid to post an advertisement for prostitution to Backpage.com. That advertisement featured photographs of the 14-year-old and included Grandberry's phone number. Ramsey and Edwards assisted him in posting that advertisement. The charges further allege that on January 1, 2013, Grandberry and Gibson directed Edwards to change the Backpage.com advertisement to include Gibson's phone number instead of Grandberry's. According to the Superseding Indictment, Gibson paid to post the new advertisement.
Grandberry, Lyons, Gibson, and Briggs face up to life in prison if convicted of all the charges in the indictment. Gibson and Briggs additionally face a mandatory minimum of ten years in prison, up to life, if convicted of the child sex trafficking charge. Ramsey and Edwards face up to five years in prison for the conspiracy charge. Federal law does not allow for parole.
This Superseding Indictment expands on an indictment filed on January 10, 2013, that charged Grandberry and Lyons with conspiracy to commit child sex trafficking. Gibson was previously indicted on the same child sex trafficking charge in a separate indictment also filed on January 10, 2013. Grandberry, Lyons, and Gibson are being held without bond on those earlier charges. Prior to the federal indictment, Grandberry and Lyons were arrested on related state human trafficking charges brought by the Shelby County District Attorney General's Office.
The case was investigated by the Federal Bureau of Investigation and the Memphis Police Department. Assistant U.S. Attorney Jonathan Skrmetti of the U.S. Attorney's Office's Civil Rights Unit is prosecuting the case.
U.S. Attorney Edward L. Stanton III established the Civil Rights Unit in February 2011 to ensure that every individual in the Western District of Tennessee enjoys the rights and freedoms guaranteed by the Constitution of the United States. The Civil Rights Unit assigns dedicated prosecutors to pursue the full spectrum of federal civil rights crimes, including official misconduct, human trafficking, and hate crimes, as well as law enforcement public corruption cases. Since the formation of the Civil Rights Unit, Memphis has consistently ranked as one of the top U.S. Attorney's Offices in the country for the prosecution of sex trafficking.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Sherman, Texas, Man, Sentenced to 71 Months in Federal Prison for Transporting More Than 100 Kilograms of MarijuanaRead the Press Release
Defendant Arrested During a Traffic Violation Near Abilene, Texas
LUBBOCK, Texas — Brian Julian Gallardo, 22, of Sherman, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 71 months in federal prison, following his guilty plea in December 2012 to one count of possession with intent to distribute 100 kilograms or more of marijuana, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Gallardo’s co-defendant in the case, Mark Dean Garrison, 48, of Denison, Texas, was sentenced on March 15, 2013, to 46 months in federal prison after he pleaded guilty to the same offense.
According to documents filed in the case, in late October 2012, a trooper with the Texas Department of Public Safety stopped a pickup truck, owned and driven by Garrison, for a traffic violation on Interstate 20 near Abilene, Texas. Gallardo was the only passenger in the truck, which was carrying several spools of barbed wire. After Garrison consented to a search of the truck, one of the troopers opened the inside of one of the spools of wire and detected the odor of marijuana. Further investigation revealed that the spools of wire contained 229 bricks of marijuana that weighed approximately 112 kilograms. Both Garrison and Gallardo were arrested and have been in custody since that time.
The case was investigated by the Texas Department of Public Service and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Deputy Criminal Chief Assistant U.S. Attorney Denise Williams prosecuted.
Pulaski Man Sentenced to 70 Months for Drug ConspiracyRead the Press Release
Frank Dwayne Randolph a/k/a Tubbs, 48, of Pulaski, Tennessee, was sentenced yesterday to 70 months in prison for his role in a drug trafficking conspiracy, announced Jerry E. Martin, U.S. Attorney for the Middle District of Tennessee.
U.S. District Judge Aleta A.Trauger also sentenced Randolph to serve three years of supervised release and ordered him to forfeit $750,000.00, which was determined to be criminal proceeds of the drug conspiracy. In imposing the sentence, Judge Trauger noted that Randolph had been involved in one of the largest drug conspiracies in the Giles County, Tennessee area and continued to show no remorse for his crimes.Randolph was convicted, following a month-long trial in November 2012, of drug conspiracy, money laundering conspiracy, being an accessory after the fact to a drug conspiracy and perjury.
According to the evidence at trial, Randolph’s half-brother, Travis Gentry, who was also convicted at trial, obtained large quantities of cocaine and marijuana from various suppliers. Gentry then cooked a large portion of the cocaine into crack cocaine to increase his profits and then distributed the drugs in rural areas including Pulaski, Tenn. and Athens, Alabama. Multiple firearms, including several loaded assault rifles, were recovered from Randolph's residence in Pulaski, Tenn. during the execution of search warrants.Approximately $2,100.00 in marked buy money, from a prior cocaine purchase from Gentry, was also recovered from a bank safe deposit box held by Randolph. A review of financial records showed over $100,000.00 in deposits into Randolph's accounts which were not accounted for by his payroll or declared business tax receipts from his business, Quality Window Tinting, in Pulaski, Tenn. Prosecutors argued at trial, and the Court determined at sentencing, that this money constituted proceeds from the drug conspiracy.
Travis Gentry is scheduled to be sentenced on April 26, 2013.
The investigation was conducted by the Drug Enforcement Administration, the Tennessee Bureau of Investigation, the Giles County Sheriff's Department, the Pulaski Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant U.S. Attorneys Sunny A.M. Koshy and Alex Little represented the United States at trial and sentencing.Professional Gambler Charged with over $481,000 in Illegal Financial Transactions at Ameristar CasinoRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a professional gambler from New Jersey has been charged in federal court with illegally structuring financial transactions, including cashing in hundreds of thousands of dollars in chips at a local casino.
Richard Dougherty, 52, of Linwood, N.J., was charged in a federal criminal complaint filed in the U.S. District Court in Kansas City, Mo., with structuring financial transactions. Dougherty was arrested at the Ameristar Casino in Kansas City, Mo., on the evening of Thursday, March 28, 2013, following the filing of the criminal complaint earlier that day. He appeared in court today and was released on bond.
According to an affidavit filed in support of the criminal complaint, Dougherty won nearly $700,000 during dozens of visits to Ameristar over the past year. Dougherty is a professional gambler and a member of the Tom Hyland Card Counting team, one of the most successful black jack teams in America. The Hyland Team is most known for their expertise as card counters and passed on their skills to many team members over the years. Hyland team members, both full-time and part-time players, are scattered across the country. The team at one point had grown to 30 or 40 people. Playing as a team rather than an individual helps to smooth over the losses, because if one person has a bad day then it’s usually smoothed out by the wins of teammates.
Because the Hyland team has been counting cards for so long they are recognized at many casinos. The team has used disguises throughout the years at various casinos. However, at present, disguises are less important as there are laws, specifically in Atlantic City and in Missouri, to prevent casinos from barring card counters.
Dougherty is charged with structuring financial transactions at Ameristar in order to avoid federal reporting requirements. Federal law requires casinos to file currency transaction reports with the federal government for each transaction (either cashing in or cashing out) of $10,000 or more. These regulations also require that multiple transactions be treated as a single transaction if they are conducted by, or on behalf of, the same person, and they total more than $10,000 during one business day. It is illegal for an individual to structure financial transactions in such a way that the casino fails to file the required report.
The criminal complaint alleges that Dougherty purchased at least $166,380 in chips with cash in 11 structured transactions at Ameristar, and that he cashed in chips for $315,075 in 32 separate structured transactions from Feb. 16, 2012 to March 27, 2013.
Dougherty made at least 60 visits to Ameristar between Feb. 16, 2012 and March 27, 2013. During this time period, the affidavit says, Dougherty won at least $697,892 and lost $382,880, netting him $315,012 in casino winnings. Not one time during his play at the Ameristar did Dougherty cash out for more than $10,000, according to the affidavit. Dougherty allegedly structured these currency transactions in amounts less than $10,000 to avoid triggering the filing of a currency transaction report.
The affidavit also refers to Dougherty’s gambling activities at casinos in Powhattan, Kan.; Atlantic City, N.J.; Las Vegas, Nev.; Metropolis, Ill.; Elizabeth, Ind.; Valley View, Calif.; West Lake, La.; and Morton, Minn. Dougherty has allegedly used multiple aliases at a large number of the casinos he has played. According to the affidavit, casinos have filed 126 currency transaction reports on Dougherty since 1996.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge 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 Curt Bohling. It was investigated by IRS-Criminal Investigation.Pinellas Resident Sentenced to 15 Years in Prison for Narcotics PossessionRead the Press Release
Tampa, FL - U.S. District Judge Richard A. Lazzara today sentenced Jhi Michael Reynolds (27, St. Petersburg) to 15 years in federal prison for possession with intent to distribute in excess of 28 grams of cocaine base. Reynolds pleaded guilty on November 8, 2012.
According to testimony and evidence presented in court, on August 27, 2011, St. Petersburg Police officers stopped Reynolds for driving a vehicle with an unlawful window tint. As officers approached the car, Reynolds accelerated away from the officers and led them on a high speed car chase. Officers eventually lost sight of Reynolds' car. A short time later, officers located Reynolds’ car parked near a residence in St. Petersburg. Officers arrested Reynolds at the residence. They searched the car and found 43.8 grams of crack cocaine. They also recovered a Glock 9mm semi-automatic pistol, loaded with 21 rounds of ammunition, near the arrest site. Reynolds later admitted that the gun and the narcotics belonged to him. Prior to his August 2011 arrest, Reynolds had previously been convicted of a number of felony offenses. As such, he was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, and Firearms, with assistance from the St. Petersburg Police Department. It was prosecuted by Assistant United States Attorneys Sara Sweeney and Jay Hoffer.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney Robert E. O’Neill, along with Julie Torres, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Orange County Woman Sentenced to Five Years in Federal Prison for Providing Material Support to Terrorists by Sending Money to Pakistan to Be Used in Attacks Against U.S. Forces OverseasRead the Press Release
SANTA ANA, California – A Turkish citizen who resides in Orange County was sentenced this morning to five years in federal prison after admitting she provided material support to terrorists by wiring money to Pakistan to help fund attacks against American military personnel.
Oytun Ayse Mihalik, 40, of La Palma, a lawful permanent resident of the United States, was sentenced by United States District Judge Josephine Staton Tucker. Mihalik pleaded guilty on August 10, 2012, to one count of providing material support to terrorists. When she pleaded guilty, she specifically admitted that she provided money to an individual in Pakistan with the intention that the money would be used to prepare for and carry out attacks against United States military personnel and other persons overseas. Using the alias “Cindy Palmer,” Mihalik sent a total of $2,050 in three wire transfers to the person in Pakistan over the course of three weeks at the end of 2010 and the beginning of 2011.
“International terrorists require a steady pipeline of money to maintain and support their operations,” said United States Attorney André Birotte Jr. “The defendant in this case knowingly and deliberately made wire transfers to fund terrorist operations overseas, where contributions like these could have a significant and devastating impact on American interests.”
Mihalik’s “support for terrorism was knowing and intentional – not the product of undue influence or misguided good intentions and not aberrant conduct,” federal prosecutors wrote in a sentencing memo. “In fact, as [Mihalik] herself told the FBI shortly after her arrest, she believed [the person in Pakistan] was a member of the Taliban and Al Qaeda, and she knew he was using the money for mujahadin operations against American military forces in the Afghanistan/Pakistan region,..."
“The FBI is committed to the prevention of terrorist attacks targeting the United States,” said Bill Lewis, Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Through the partnerships of the Joint Terrorism Task Force, we will continue to hold accountable those who support terrorist causes by financing operations that target Americans and her interests.”
Mihalik has been in federal custody since she was arrested on August 27, 2011, as she was preparing to board a flight to her native Turkey with a one-way ticket. As part of this case, Mihalik agreed that the United States can take away her immigration status and that she will be removed from the United States to Turkey after serving her prison sentence.
“While the sum of money involved in this case may not seem substantial, there’s no doubt the funds this defendant sent overseas would have covered the cost of an attack on U.S. soldiers,” said Claude Arnold, special agent in charge for HSI Los Angeles. “Money is the mother’s milk of terrorism and we will move aggressively against those who provide financial support to groups and individuals bent on harming the U.S. and its allies.”
The case against Mihalik was investigated by the FBI’s Joint Terrorism Task Force. The JTTF includes special agents with the Federal Bureau of Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, as well as investigators with the Orange County Sheriff’s Department.
Release No. 13-046
Norwalk Man Sentenced to Nine Years in Prison for Selling Drugs, Violating Supervised ReleaseRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, today announced that MICHAEL UNDERHILL, 42, of Norwalk, was sentenced yesterday by Senior U.S. District Judge Warren W. Eginton in Bridgeport to 108 months of imprisonment for distributing narcotics and for violating the conditions of his supervised release from a prior narcotics conviction.
According to court documents and statements made in court, in March 1998, UNDERHILL was sentenced in U.S. District Court in New Haven to 144 months of imprisonment, followed by five years of supervised release, for distributing crack cocaine. He was released from federal prison in October 2007 and began serving his term of supervised release.
On September 25, 2010, Bridgeport Police attempted to pull over UNDERHILL’s vehicle. UNDERHILL accelerated away from police, subsequently crashed his vehicle into the rear of a residence in Fairfield and fled on foot. He was apprehended a short time later. Law enforcement officers recovered quantities of crack cocaine, cocaine, heroin, marijuana and Ecstacy, all packaged for sale, from the scene of UNDERHILL’s arrest, and a search of UNDERHILL’s person revealed more than $4000 in cash.
In August 2012, while UNDERHILL was released on bond awaiting disposition of the charges in this case, DEA agents executed a search warrant at UNDERHILL’s residence and found additional quantities of crack, cocaine and heroin.
On January 3, 2013, UNDERHILL pleaded guilty to one count of conspiracy to possess with intent to distribute 28 grams or more of cocaine base (“crack cocaine”).
Judge Eginton sentenced UNDERHILL to 60 months of imprisonment on the narcotics offense, and a consecutive 48 months of imprisonment for the supervised release violation.
This matter was investigated by the Bridgeport Police Department and the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force. The case was prosecuted by Assistant United States Attorney H. Gordon Hall.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Milton Man Federally Charged with Sexual ExploitationRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Brian Edward Kelson, Jr., age 21, of Milton, Pennsylvania was indicted Wednesday by a federal grand jury in Harrisburg charging him with two counts of producing materials involving the sexual exploitation of children and one count of possession of child pornography.
This case is being jointly investigated by the Federal Bureau of Investigation, the Milton Police Department and the Pennsylvania State Police. The case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the mandatory minimum penalty under the federal statute is 15 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Insider Trading Charges Against Hedge Fund Portfolio ManagerRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), today announced conspiracy and securities fraud charges against Michael STEINBERG, a portfolio manager at a hedge fund located in New York, New York (“Hedge Fund A”), for his alleged involvement in an insider trading scheme. As alleged, STEINBERG executed trades based on material, nonpublic information (“Inside Information”) provided to him by a Hedge Fund A analyst who worked for him, John Horvath, who previously pled guilty to securities fraud charges pursuant to a cooperation agreement. In particular, STEINBERG is alleged to have traded in two publicly traded technology companies, Dell, Inc. (“Dell”) and NVIDIA Corporation (“NVIDIA”), based on Inside Information that Horvath obtained from a circle of research analysts at several different investment firms, all of whom have also pled guilty for their roles in the scheme. Those individuals are: Jesse Tortora, a former research analyst at Diamondback; Spyridon “Sam” Adondakis, a former research analyst at Level Global; Danny Kuo, a former research analyst and fund manager at Whittier Trust Company; and Sandeep “Sandy” Goyal, a former research analyst who worked at the Manhattan office of Neuberger Berman. STEINBERG’s trading in Dell and NVIDIA earned Hedge Fund A $1.4 million in illegal profits. STEINBERG was arrested this morning in Manhattan, and will be presented and arraigned in Manhattan federal court before U.S. District Judge Richard J. Sullivan at 11:00 a.m.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Michael Steinberg was another Wall Street insider who fed off a corrupt grapevine of proprietary and confidential information cultivated by other professionals who made their own rules to make money. With lightning speed in at least one case, Mr. Steinberg seized on the opportunity to cash in and tried to keep his crime quiet, as charged in the Indictment. As alleged, where once Mr. Steinberg answered only to his own rules, now he will have to answer to the rule of law, like so many others before him.”
FBI Assistant Director-in-Charge George Venizelos said: “Mr. Steinberg’s arrest is the latest in the FBI’s campaign to root out insider trading at hedge funds and expert networking firms, resulting in more than 70 arrests so far. As alleged, Mr. Steinberg was at the center of an elite criminal club, where cheating and corruption were rewarded. Research was nothing more than well-timed tips from an extensive network of well-sourced analysts. The law is clear for everyone including Mr. Steinberg. Trading on inside information is illegal. The FBI will continue to police our markets and arrest anyone who violates the law.”
In a separate action, the U.S. Securities and Exchange Commission (“SEC”) announced civil charges against STEINBERG.
According to the allegations in the Superseding Indictment, other court documents, and evidence adduced at a related trial:
A group of analysts at different hedge funds, including Tortora, Adondakis, Horvath, and Kuo obtained Inside Information directly or indirectly from employees who worked at certain public companies, and then shared the Information with each other and with the hedge fund portfolio managers for whom they worked, including STEINBERG. In particular, Tortora provided Horvath and others with Inside Information related to Dell’s quarterly earnings (the “Dell Inside Information”), which Tortora obtained from Goyal who, in turn, had obtained the Information from an employee at Dell (the “Dell Insider”). For Dell’s quarter ended August 1, 2008, the results for which were publicly announced by Dell on August 28, 2008 (the “Dell Announcement”), the Dell Inside Information indicated that Dell would report gross margins that were materially lower than market expectations. In advance of the Dell Announcement, Horvath reported this negative Inside Information to STEINBERG.
On August 18, 2008, after a series of calls from the Dell Insider to Goyal and from Goyal to Tortora and Horvath, Horvath then called STEINBERG. Within a minute of the telephone call between STEINBERG and Horvath, STEINBERG’s portfolio began shorting shares of Dell. One minute later, Horvath wrote an email to STEINBERG stating: “Pls keep the DELL stuff especially on the down low . . . just mentioning that because JT [Jesse Tortora] asked me specifically to be extra sensitive with the info.” By the end of the day on August 18, 2008, STEINBERG had accumulated a net short position of over 167,000 shares of Dell. On August 26, 2008, Horvath confirmed in an email to STEINBERG and another portfolio manager at Hedge Fund A that Horvath’s Dell information had been based on a “2nd hand read from someone at the company.” STEINBERG responded: “Yes normally we would never divulge data like this, so please be discreet.” And on August 27, 2008, STEINBERG sent an email to Horvath with the subject line, “Dell action,” in which he asked, “Have u double checked [with] JT this week?” Horvath responded, “Yes he [Tortora] checked in [a] couple days ago, same read no change.”
On August 28, 2008, before Dell’s Announcement, STEINBERGexecuted or caused to be executed additional short trades. STEINBERGalso executed or caused to be executed options trades in Dell in advance of the Dell Announcement.
After the close of the market on August 28, 2008, Dell publicly announced gross margins that were substantially below market expectations. At the end of the next trading day following Dell’s Announcement, its stock price dropped by more than 13%. Shortly thereafter, STEINBERG covered his short position, and closed out his position in Dell option contracts, resulting in an illegal profit for Hedge Fund A of approximately $1 million.
In addition, in 2009, Kuo obtained Inside Information regarding NVIDIA’s financial results (the “NVIDIA Inside Information”) in advance of NVIDIA’s quarterly earnings announcements. The NVIDIA Inside Information indicated, among other things, that NVIDIA’s gross margins would be lower than market expectations. Kuo obtained the NVIDIA Inside Information from a friend, Hyung Lim (“Lim”), who received it from an employee at NVIDIA (the “NVIDIA Insider”). In advance of NVIDIA’s May 7, 2009 quarterly earnings announcement (the “NVIDIA Announcement”), Kuo provided the NVIDIA Inside Information, which he had obtained from Lim, to Tortora, Horvath, and others. Horvath, in turn, provided the NVIDIA Inside Information to STEINBERG, who executed or caused to be executed transactions in NVIDIA in advance of the NVIDIA Announcement.
On May 7, 2009, NVIDIA publicly announced gross margins that were substantially lower than the market expected. At the end of the trading day following the NVIDIA Announcement, NVIDIA’s stock price dropped by more than 13%. Shortly thereafter, STEINBERG caused Hedge Fund A to liquidate its position in NVIDIA, resulting in an illegal profit for Hedge Fund A of over $400,000.
STEINBERG, 40, of New York, New York, is charged with one count of conspiracy to commit securities fraud and four counts of securities fraud. The conspiracy count carries a maximum sentence of five years in prison and a fine of the greater of $250,000 or twice the gross gain or loss from the offense. Each of the securities fraud counts carries a maximum sentence of 20 years in prison and a fine of $5 million or twice the gross gain or loss from the offense.
The allegations in the Indictment against STEINBERG are merely accusations and he is presumed innocent unless and until proven guilty.
Horvath, 43, and Kuo, 37, each pled guilty to one count of conspiracy to commit securities fraud and two substantive counts of securities fraud in September 2012 and April 2012, respectively.
Tortora, 35, Adondakis, 41, and Goyal, 40, each pled guilty to one count of conspiracy to commit securities fraud and one substantive count of securities fraud in May 2011, April 2011, and June 2011, respectively.
Mr. Bharara praised the investigative work of the FBI. He also thanked SEC. Mr. Bharara noted that the investigation is continuing.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Antonia M. Apps and John T. Zach are in charge of the prosecution.
U.S. v. Michael Steinberg S4 Indictment
Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Extradition of Australian Research Analyst on Insider Trading ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrival of TRENT MARTIN, who was extradited from Hong Kong yesterday to face insider trading charges. He was arrested in Hong Kong on December 22, 2012, pursuant to a request from the United States. MARTIN will be presented in Manhattan federal court before U.S. Magistrate Judge Henry B. Pitman this afternoon at 2:30 p.m.
MARTIN, a former research analyst at an international financial services firm, was charged for his alleged involvement in an insider trading scheme with Thomas C. Conradt and David J. Weishaus, two stock brokers who were arrested for their roles in the scheme on November 29, 2012. MARTIN, Conradt, Weishaus, and their co-conspirators allegedly traded on the basis of material, non-public information (“Inside Information”) concerning IBM’s acquisition of a software company, SPSS, Inc., in 2009, earning more than $1 million in profits in the aggregate.
Manhattan U.S. Attorney Preet Bharara said: “Like other insider traders, Trent Martin allegedly exploited his access to confidential information to turn an illegal profit. With his arrival here to face charges for his alleged conduct, he now knows that the long arm of the law will reach out – even thousands of miles – to hold alleged lawbreakers accountable.”
FBI Assistant Director-in-Charge George Venizelos said: “As alleged, Trent Martin acquired information he knew was confidential, and then traded on it and shared it, which he knew was illegal. In fact, as alleged, he was aware this conduct could land him in prison. What Martin may not have realized was that being halfway around the globe did not insulate him from arrest and prosecution.”
The following allegations are based on the Superseding Indictment against MARTIN that was unsealed on December 26, 2012 in Manhattan federal court, and other court documents:
The Inside Information concerning IBM’s acquisition of SPSS originated from a corporate lawyer who was part of the legal team that represented IBM in the transaction (“Attorney-1”) in 2009. On May 31, 2009, Attorney-1 shared Inside Information concerning the transaction, including the names of the parties and the fact that IBM was going to acquire SPSS for a significant premium over SPSS’s market price, with his close friend, MARTIN. The information was shared in confidence. Based on their longstanding history of sharing confidences, Attorney-1 expected that MARTIN would not share the information or use it to trade.
However, in June 2009, MARTIN bought SPSS common stock based on the Inside Information he was given by Attorney-1 and, in turn, shared the tip with his roommate, Conradt, who worked as a stock broker at a securities trading firm (“Securities Trading Firm-1”). Conradt then bought SPSS common stock and tipped Weishaus, his co-worker at Securities Trading Firm-1. On June 24, 2009, Weishaus started buying call option contracts in SPSS. In addition, Conradt and Weishaus tipped their co-workers at Securities Trading Firm-1 (“CC-1 and CC-2”), who also bought SPSS call option contracts in June and July 2009 based on the Inside Information.
On July 23, 2009, MARTIN told Attorney-1 that he had purchased SPSS common stock and call options on the basis of the Inside Information that Attorney-1 had disclosed to MARTIN on May 31, 2009.
When IBM announced its acquisition of SPSS on July 28, 2009, the share price of SPSS common stock rose by 41% in one day, from the prior day’s closing price of $35.09 per share to a closing price of $49.45 per share. Thereafter, MARTIN, Conradt, Weishaus, CC-1, and CC-2 sold their SPSS positions, yielding profits of $7,900, $2,538, $129,290, $629,954, and $254,360, respectively, for a total profit in excess of $1 million.
In the fall of 2010, after the U.S. Securities and Exchange Commission (“SEC”) had begun investigating insider trading in SPSS, MARTIN told Attorney-1 that he had profited approximately $8,000 from the Inside Information concerning IBM’s acquisition of SPSS and had disclosed it to his roommate, Conradt, before the transaction was publicly announced. MARTIN also told Attorney-1 that MARTIN believed Conradt had taken a large position in SPSS before the announcement and had, in turn, shared the Inside Information with others. MARTIN further stated to Attorney-1 that he was returning to Australia in light of the SEC investigation, and that he knew that insider trading can result in jail sentences, referring to the criminal prosecution of Martha Stewart.
MARTIN, 33, has been charged with one count of conspiracy to commit securities fraud and one count of securities fraud. Count One, the conspiracy charge, carries a maximum potential penalty of five years in prison and a fine of $250,000 or twice the gross gain or loss from the offense. Count Two, the securities fraud charge, carries a maximum potential penalty of 20 years in prison and a maximum fine of $5 million.
Following their earlier arrests in the United States, Conradt and Weishaus pled not guilty on December 7, 2012. The case against MARTIN, Conradt, and Weishaus is assigned to U.S. District Judge Andrew L. Carter, Jr. Conradt and Weishaus are scheduled to appear before Judge Carter next on April 3, 2013, at 12:00 p.m.
Mr. Bharara praised the investigative work of the FBI and thanked authorities in Hong Kong. He also thanked the SEC and the U.S. Department of Justice’s Office of International Affairs. Mr. Bharara noted that the investigation is continuing.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys John T. Zach and David B. Massey are in charge of the prosecution.
The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v Trent Martin Indictment
Manhattan Accountant Pleads Guilty to Embezzling More Than $500,000Read the Press Release
TOPEKA, KAN. – An accountant in Manhattan, Kan., has pleaded guilty to embezzling more than $500,000 from the commercial construction company where he worked, U.S. Attorney Barry Grissom said today.
Larry D. Lord, 63, Manhattan, Kan., pleaded guilty to one count of mail fraud and one count of filing a false tax return. In his plea, Lord admitted the crimes occurred from 1995 to 2012 while he worked as an accountant for Cheney Construction Incorporated in Manhattan, Kan.
He used his position to embezzle funds from CCI’s bank account to pay his personal expenses, including his and his wife’s personal credit cards. Lord wrote checks on CCI’s bank account and mailed the checks to a credit card company. To conceal the crimes, he falsified the company’s check register log to make it appear the check was written to a legitimate payee. He wrote checks totaling $535,179. In addition he failed to report the embezzled funds on his federal income tax, resulting in taxes owed for 2006 through 2011 of $103,962.
Sentencing is set for July 1. He faces a maximum penalty of 20 years and a fine up to $250,000 on the mail fraud count and a maximum penalty of three years and a fine up to $250,000 on the income tax charge. Grissom commended the Internal Revenue Service, the FBI, the Pottawatomie County Sheriff’s Office and Assistant U.S. Attorney Christine Kenney for their work on the case.
Madison County Man Sentenced to 30 Years in Prison for Marijuana Trafficking ConspiracyRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Madison County man to 30 years and five months in prison for his lead role in a North Alabama marijuana-trafficking conspiracy, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Richard D. Schwein Jr. and Madison-Morgan County High Intensity Drug Trafficking Area Task Force Commander Dewayne McCarver.
U.S. District Judge Karon O. Bowdre sentenced KINGY OSSARIUS HOLDEN, 34, of Toney, on one count of conspiracy to possess and distribute more than 1,000 kilograms, or 2,200 pounds, of marijuana, four counts of distributing marijuana and one count of being a convicted felon in possession of a firearm, a Taurus handgun.A federal jury convicted Holden in August. The jury also convicted three Huntsville men for conspiring with Holden to operate the Huntsville-based drug-distribution ring between 2006 and 2011. Before the trial, eight other defendants in the case had pled guilty to various charges related to marijuana or cocaine distribution.
Holden was the ring-leader of the marijuana-trafficking conspiracy and "profited greatly from his crimes," the government said in its sentencing memorandum to the court. Based on evidence at trial, Holden had no other means of support besides illegal drug distribution and dog fighting and breeding, the memorandum noted.
"Today, federal, state and local law enforcement came together to take a leading drug-trafficker off our streets," Vance said. "I commend them for their work in dismantling this conspiracy and sending nearly a dozen drug dealers to prison," she said.
"This multi-agency investigation dealt a significant blow to this criminal enterprise and has made our communities safer," Schwein said. "The FBI and our law enforcement partners stand united in our commitment to identify, apprehend, prosecute and dismantle drug-trafficking conspiracies so that they are no longer a threat. I particularly want to thank the Madison-Morgan County High Intensity Drug Trafficking Area Task Force whose efforts made this operation a success," he said.
Trial evidence included conversations from federal wire taps which were conducted between July 2011 and September 2011. The wiretaps intercepted calls among all the defendants on trial, and among most of the defendants in the case, in which they discussed the drug trafficking operation. During the course of the investigation, law enforcement seized $483,000, 17 firearms, about nine pounds of marijuana, and about 13 kilograms of cocaine from the illegal drug-distribution ring.
Convicted of the drug-conspiracy at trial, along with Holden, were: MYRON DEWAYNE TIBBS, 35, MICHAEL ARNEZ "Little Mike" BROWN, 33, and WILLIAM DEMETRO "Little Will" HOLDEN, 24, all of Huntsville.
The eight defendants who pleaded guilty before trial and their charges are: • IVAN FLETCHER, 37, of Toney; convicted felon in possession of a firearm, possession with intent to distribute cocaine, and possessing a firearm in furtherance of a drug-trafficking crime.
• ROY CHRISTIAN LEE, 45, of Huntsville; conspiracy to distribute marijuana and cocaine, possessing a firearm in furtherance of a drug-trafficking crime, and possession with intent to distribute cocaine.
• CEDRICK RAMON "Ced" or "Big Ced" CARROLL, 34, of Tuscumbia; conspiracy to distribute cocaine, possession with intent to distribute powder and crack cocaine, and possessing a firearm in furtherance of a drug-trafficking crime.
• ASHLEY NICOLE CHUNN, 25, of Huntsville; conspiracy to distribute marijuana.
• NATHAN SEARCY WILLIAMS, 30, of Northport; conspiracy to distribute marijuana and four counts of money laundering.
• SHARODE DUROME PICKETT, 32, of Birmingham; conspiracy to distribute marijuana.
• LAMARIC TREVELLE "Akbar" DOUGLAS, 23, of Huntsville; conspiracy to distribute marijuana, and possession with intent to distribute marijuana.
• NAPOLEON LEE INGRAM, 45, of Muscle Shoals; conspiracy to distribute cocaine, and possession with intent to distribute cocaine.The FBI and the Madison-Morgan County High Intensity Drug Trafficking Area Task Force investigated the case. Assistant U.S. Attorneys Laura D. Hodge, Enid D. Athanas and Jennifer Murnahan prosecuted the case.
Lee's Summit Man Sentenced to 15 Years for $1 Million Meth Conspiracy, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lee’s Summit, Mo., man was sentenced in federal court today for his role in a $1 million conspiracy to distribute methamphetamine and for illegally possessing a firearm.
Clark L. Vanosdoll, 45, of Lee’s Summit, was sentenced by U.S. District Judge Gary A. Fenner to 15 years in federal prison without parole. The court also ordered Vanosdoll to forfeit to the government $100,000, which represents the portion of the proceeds of the drug-trafficking conspiracy for which he was held responsible.
On May 18, 2012, Vanosdoll pleaded guilty to participating in a conspiracy to distribute methamphetamine from Jan. 1, 2006 to May 31, 2010 and to being a felon in possession of a firearm.
Vanosdoll admitted that he was in possession of a loaded Lorcin .22-caliber pistol when he was arrested on Dec. 20, 2011. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Vanosdoll has prior felony convictions for manufacturing a controlled substance and possessing a controlled substance.
Vanosdoll is the sixth defendant to be sentenced after pleading guilty to participating in the drug-trafficking conspiracy. Anthony J. Petty, 32, address unknown, was sentenced to 15 years in federal prison without parole. Jeffrey S. Lewis, 46, and Roxie A. Boling, 30, both of Kansas City, Mo., were each sentenced to 10 years in federal prison without parole. Michael S. McCollum, 62, of Kansas City, Mo., was sentenced to seven years in federal prison without parole. Mitzi S. Damron, 39, of Kansas City, Mo., was sentenced to three years and one month in federal prison without parole.
This case is being prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes, IV. It was investigated by the Lee’s Summit, Mo., Police Department, the Kansas City, Mo., Police Department, the Independence, Mo., Police Department, the Drug Enforcement Administration, the U.S. Secret Service, and the North Kansas City, Mo., Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations.
Leader of Jewelry Theft Ring Pleads Guilty in Virginia to Racketeering ConspiracyRead the Press Release
The leader of a violent and highly sophisticated jewelry theft ring pleaded guilty today for his participation in a racketeering conspiracy, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney for the Eastern District of Virginia Neil H. MacBride; and James Newman, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division.
Alexander Cuadros-Garcia, aka “Alex,” “Brujo,” “Aleto” and “Manuel Gonzalez”, 37, of Richmond, Va., pleaded guilty before U.S. Magistrate Judge Tommy Miller in the Eastern District of Virginia, Newport News Division, to racketeering conspiracy.
According to court documents, Cuadros-Garcia led an organized criminal group that stole more than $4.6 million in jewelry from victims in Virginia and at least six other states. In March 2012, Cuadros-Garcia was charged along with seven other individuals who were members of the Richmond-based ring that regularly conducted lengthy surveillance on jewelry stores to identify vulnerable individuals and then follow their targets back to the individuals’ hotel or home.
In most of the robberies, several men would suddenly appear as the victims approached or entered their car, punch out the car’s windows, threaten the victims at knife-point and steal the victims’ merchandise. In addition, the robbers would puncture the victims’ car tires and steal their cell phone to reduce the chance of pursuit or apprehension. After a successful robbery, members of the ring would travel to New York to sell the merchandise to businessmen, who coordinated re-selling the stolen property or melting it down for future use.
At sentencing, scheduled for June 19, 2013, Cuadros-Garcia faces a maximum penalty of 20 years in prison.
Cuadros-Garcia’s co-defendants Raul Antonio Escobar-Martinez, William Leandro Herrera-Bohorquez and Juanita Diaz previously pleaded guilty for their roles in the theft ring. Escobar-Martinez and Herrera-Bohorquez were sentenced on March 7 and March 14, 2013, respectively, to serve 87 months in prison.
The investigation of this case was led by the ATF’s Washington Field Division, with the assistance of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the police departments in Williamsburg, Virginia Beach, Henrico County, Chesterfield, Prince William County and Fairfax County in Virginia, along with the Virginia State Police; the Baltimore County, Md., Police Department; the Port Authority of New York and New Jersey; the New York City Police Department; and the police departments in Rutherford, N.J., and Gwinnett County, Ga.; and the Morris County, N.J. Prosecutor’s Office.Assistant U.S. Attorney Eric M. Hurt of the Eastern District of Virginia and Trial Attorney Jerome M. Maiatico of the Criminal Division’s Organized Crime and Gang Section prosecuted the case on behalf of the United States.
Leader of Jewelry Theft Ring Pleads Guilty to Racketeering ConspiracyRead the Press Release
NEWPORT NEWS, Va. – The leader of a violent and highly sophisticated jewelry theft ring pleaded guilty today for his participation in a racketeering conspiracy, announced U.S. Attorney for the Eastern District of Virginia Neil H. MacBride; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; and James Newman, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division.
Alexander Cuadros-Garcia, aka “Alex,” “Brujo,” “Aleto” and “Manuel Gonzalez”, 37, of Richmond, Va., pleaded guilty to racketeering conspiracy before U.S. Magistrate Judge Tommy Miller. At sentencing, scheduled for July 19, 2013, Cuadros-Garcia faces a maximum penalty of 20 years in prison.
According to court documents, Cuadros-Garcia led an organized criminal group that stole more than $4.6 million in jewelry from victims in Virginia and at least six other states. In March 2012, Cuadros-Garcia was charged along with seven other individuals who were members of the Richmond-based ring that regularly conducted lengthy surveillance on jewelry stores to identify vulnerable individuals and then follow their targets back to the individuals’ hotel or home.
In most of the robberies, several men would suddenly appear as the victims approached or entered their car, punch out the car’s windows, threaten the victims at knife-point and steal the victims’ merchandise. In addition, the robbers would puncture the victims’ car tires and steal their cell phone to reduce the chance of pursuit or apprehension. After a successful robbery, members of the ring would travel to New York to sell the merchandise to businessmen, who coordinated re-selling the stolen property or melting it down for future use.
Cuadros-Garcia’s co-defendants Raul Antonio Escobar-Martinez, William Leandro Herrera-Bohorquez and Juanita Diaz previously pleaded guilty for their roles in the theft ring. Escobar-Martinez and Herrera-Bohorquez were sentenced on March 7 and March 14, 2013, respectively, to serve 87 months in prison.
The investigation of this case was led by the ATF’s Washington Field Division, with the assistance of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the police departments in Williamsburg, Virginia Beach, Henrico County, Chesterfield, Prince William County and Fairfax County in Virginia, along with the Virginia State Police; the Baltimore County, Md., Police Department; the Port Authority of New York and New Jersey; the New York City Police Department; and the police departments in Rutherford, N.J., and Gwinnett County, Ga.; and the Morris County, N.J. Prosecutor’s Office.Assistant U.S. Attorney Eric M. Hurt of the Eastern District of Virginia and Trial Attorney Jerome M. Maiatico of the Criminal Division’s Organized Crime and Gang Section prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.KC Man Sentenced to 17 Years for $809,000 Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has been sentenced in federal court for his role in an $809,000 conspiracy to distribute methamphetamine.
Luis Hernandez, 51, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner on Thursday, March 28, 2013 to 17 years in federal prison without parole.
On July 2, 2012, Hernandez pleaded guilty to participating in a conspiracy to distribute methamphetamine between Jan. 1, 2008 and Aug. 11, 2011. Hernandez admitted that he was supplied with more than seven kilograms of methamphetamine by co-defendant Jesus Roberto Zamudio Beltran, 36, a Mexican national with no known address. Hernandez admitted that he distributed the methamphetamine to co-defendants Jerry Dean Matlock, 57, of Cherryvale, Kan., Aaron Benson, 50, address unknown, and David M. Russell, 59, address unknown, on numerous occasions. Beltran, Matlock, Benson and Russell have also pleaded guilty and await sentencing.
All of the co-defendants must forfeit to the government $809,200, which represents the proceeds of the drug-trafficking conspiracy, for which they are jointly and severally liable. Hernandez must also forfeit to the government the property at 5228 E. Truman Rd., Kansas City, where his car detailing business was located, and his Ford F-150 pickup. Co-defendants must also forfeit to the government six residential properties, a Cadillac Escalade and a 1956 Chevrolet Bel Air.
This case is being prosecuted by Assistant U.S. Attorney Catherine Connelly. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
KC Man Sentenced for Northland Bank RobberyRead the Press Release
KANSAS CITY, Mo. - Tammy Dicksinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for robbing the Bank of America.
Rolando Winters, 25, of Kansas City, was sentenced by U.S. District Judge Beth Phillips to five years and 10 months in federal prison without parole.
On Nov. 7, 2012 Winters pleaded guilty to stealing $5,863 from the Bank of America at 661 N.W. 55th Terr., Kansas City, Mo. Co-defendants Edward L. Green, 24, and Robert Lowe, 27, both of Kansas City, have also pleaded guilty and await sentencing.
Winters and Lowe entered the bank on July 19, 2012 in order to rob it while Green, the getaway car driver, positioned the vehicle to pick them up after the robbery. Upon entering the bank, Winters announced that “This is a robbery” and demanded money from a teller. Winters told the teller that her life depended on it and to move quicker. Winters kept his hand in his waistband and the teller feared that he may have a gun. Lowe took money from another teller while Winters took money from the first teller. Lowe and Winters then fled from the bank.
According to court documents, law enforcement officers had been conducting surveillance on Green, Lowe and Winters as the men were apparently casing several banks in North Kansas City, Mo., and in Kansas City-North. When Lowe and Winters ran out of the bank, law enforcement officers ordered them to stop. Green was arrested without incident but Lowe and Winters continued to run around the apartment complex. They ran into an undercover law enforcement truck around the corner of a building and were taken into custody. Winters was transported to North Kansas City Hospital for treatment of injuries he received from running into the vehicle.
This case is being prosecuted by Assistant U.S. Attorney Bruce Clark. It was investigated by the FBI.