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29 March 2013
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.Jerome Bruce Seaman 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 29, 2013, before U.S. District Judge Sam E. Haddon, JEROME BRUCE SEAMAN, a 61-year-old resident of Poplar, pled guilty to theft from an Indian Tribal organization receiving federal grants, Federal False Claims Act violation, and false writings affecting federal monies. Sentencing has been set for July 1, 2013. He is currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Carl E. Rostad, the government stated it would have proved at trial the following:
In Fiscal Year 2010 (October 1, 2009 - September 30, 2010), the Fort Peck Community College (FPCC) received $7,357,080 in federal funding and in Fiscal Year 2011 (October 1, 2010 - September 30, 2011), the College received $8,988,437 in federal funding. These amounts included math and science grants from the National Science Foundation (NSF), and the U.S. Departments of Education and Energy.
SEAMAN was a mathematics instructor and grant administrator at the Fort Peck Community College. SEAMAN's position at the FPCC as an instructor and grant administrator provided training and meeting opportunities designed to benefit the FPCC and enhance the benefits of the grants which SEAMAN administered. These opportunities required travel, which, since it was job related, was reimbursable from federal grants. SEAMAN submitted false records related to 12 trips he completed between December 2009 and March 2011. The investigation revealed that SEAMAN routinely made alternate travel plans, failed to attend any training or conferences for which the travel funding was provided, and made claims against federal and college finances as if he had not engaged in activities which were entirely for his own personal benefit and enrichment. SEAMAN used fabricated and falsified hotel receipts to support his claims for reimbursement. The total amount of travel funds he received, or otherwise benefitted from, related to those trips was approximately $19,359.23.
In addition to the travel advances and reimbursements paid to SEAMAN while he was on personal adventure, SEAMAN also received approximately $9,668.88 in wages from FPCC for the time periods covered by the 12 trips to which he would not have been entitled if the college was aware that he was on what amounted to unauthorized personal leave.
FPCC's former president advised that SEAMAN had admitted in meetings - when challenged about the fraudulent travel claims - that he knew the claims were false.
SEAMAN had originally pled guilty to the first count of the indictment on December 11, 2012. The Court accepted his guilty plea but, as is the practice in federal court, reserved a decision on whether to accept the plea agreement until a presentence report was prepared.
On March 18, 2013, because SEAMAN challenged certain factual allegations in the presentence report that suggested that he be recanting his admission of guilt, the Court rejected the plea agreement and allowed SEAMAN to withdraw his guilty plea to Count I.
Trial on all counts was set for April 2, 2013. On March 22, 2013, SEAMAN moved to change his plea to guilty to the first three counts of the four count indictment without a plea agreement. Today those guilty pleas were accepted and the trial vacated.
SEAMAN faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release on the first charge, and possible penalties of 5 years in prison, a $250,000 fine, and 3 years supervised release on each of the next two charges.
I meet regularly with tribal officials on each of Montana's reservations, and at each meeting they ask this office to do more to put an end to corruption and theft in the administration of federal grants and programs. I take - and have taken - their pleas to heart when my office created the Guardians Project with just that mission in mind. The change of plea today represents just one of many, many steps this office will take to respond the concerns of our Indian communities for honesty and integrity in tribal government." Michael W. Cotter, United States Attorney for the District of Montana.
The investigation was conducted by a team of agents and auditors working with the U.S. Attorney's Guardians Project, including the Office of Inspector General for the Department of Interior, the Federal Bureau of Investigation, and the Criminal Investigation Division of the Internal Revenue Service.
Iowa Man Sentenced for Armed Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Iowa man was sentenced in federal court today for the armed robbery of National Bank of Kansas City.
Troy John Milani, 45, of Iowa, was sentenced by U.S. District Judge Beth Phillips to eight years and nine months in federal prison without parole.
On Oct. 25, 2012 Milani pleaded guilty to using a weapon to steal $2,330 from National Bank of Kansas City, 9750 N. Ash, Kansas City, Mo.
Milani admitted that he walked into the bank on April 2, 2012 and placed a note on a teller counter. Milani pointed what appeared to be a handgun at the teller and said, “Give me your money now!” The note contained the message: “You have 30 seconds to get 3500 counted out to me. If you fail, I start shooting. The Clock’s ticking.”(sic) As the teller reached into the drawer to get the money, Milani repeatedly said, “More, More, More!” After taking the money, Milani fled from the bank.
Police officers stopped Milani’s vehicle a short time later at the intersection of I-35 and Parvin Road, and he was arrested. Officers recovered $2,330 from his front pocket. Milani told police officers that he robbed the bank with a plastic toy gun that he stole earlier that same day from Walmart. Milani stated that he threw the plastic gun out of his car window.
This case is being prosecuted by Assistant U.S. Attorney Christina Y. Tabor. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Indictment Unsealed Against Ogallala ManRead the Press Release
United States Attorney Deborah R. Gilg announced that the indictment against Brock Adkins of Ogallala, Nebraska, has been unsealed. The indictment charges possession with intent to distribute less than 100 grams of a mixture or substance containing a detectable amount of heroin and 5 grams or more of methamphetamine (actual). The maximum penalty for this offense is 40 years imprisonment, a $5,000,000 fine, and at least 4 years of supervised release. The indictment also charges Mr. Adkins with being a drug user in possession of a firearm. The maximum penalty is 10 years imprisonment, a $250,000 fine, and 3 years of supervised release. The indictment also contains a forfeiture allegation for $6,485.00 in United States currency.
These charges are a result of a search warrant executed on October 11, 2012, in Ogallala, Nebraska. Mr. Adkins is set to appear in Federal Court for his initial appearance on March 29, 2013, at 1:30 p.m.
Illegal Alien Sentenced to 24 Months for Unlawful ReentryRead the Press Release
ALEXANDRIA, Va. – Angel Andrew Gomez-Garcia, 41, an illegal alien from El Salvador, was sentenced today to 24 months in prison, followed by three years of supervised release, for unlawfully reentering the United States after being deported following his conviction for aggravated sexual battery.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and M. Yvonne Evans, Field Office Director of the U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) Washington Field Office, made the announcement after sentencing by U.S. District Judge Claude M. Hilton.
According to court records, Gomez-Garcia is a citizen of El Salvador who has unlawfully entered the United States on at least three occasions. Over the past 14 years, he has been convicted of five separate crimes, including aggravated sexual battery in Alexandria in 1999 and Fairfax County in 2009.
This case was investigated by ICE ERO. Special Assistant United States Attorney Stacey Rohrs is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Harrisburg Man Federally Charged with Firearms Offenses as Part of On-Going Partnership to Respond to Violent Crime in HarrisburgRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Carl Murphy, Jr., age 32, of Harrisburg, Pennsylvania was indicted Wednesday by a federal grand jury in Harrisburg charging him with two counts of possession of a firearm by a convicted felon.
According to United States Attorney Peter J. Smith, the charges are the result of an on-going partnership with the Dauphin County District Attorney’s Office that was announced in August 2012 to help respond to a surge of violent crime within the city. The charges against Murphy are a result of allegations that on both March 7, 2012, and October 13, 2012 Murphy possessed a firearm in Harrisburg, Pennsylvania after having previously been convicted of a felony crime. The firearms were both recovered by the Harrisburg Police Bureau.
This case is being jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrisburg Police Bureau. This case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is 10 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.
Gila River Man Sentenced to 15 Years for Abusive Sexual ContactRead the Press Release
PHOENIX – On March 27, 2013, Keith Patrick Manuel, 40, of Bapchule, Arizona, was sentenced by U.S. District Judge Karen Schreierto 180 months in prison to be followed by lifetime supervised release. Keith Manuel pleaded guilty on January 15, 2013, to Abusive Sexual Contact
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Gila River Police Department. The prosecution is being handled by Raynette M. Logan and Jennifer E. Green, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-12-01557-PHX-DGC
RELEASE NUMBER: 2013-025_ManuelFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Georgia Husband and Wife Tax Return Preparers Indicted for Tax CrimesRead the Press Release
On March 14, 2013, a federal grand jury in Macon, Ga., returned an 18 count indictment alleging that Natashia and Detrick Tucker, a husband and wife couple who owned and operated a tax preparation business named T&T Express located in Pine Mountain, Ga., conspired to defraud the United States by preparing and filing fraudulent tax returns that illegally claimed inflated tax refunds for their clients. The indictment also charges both of the Tuckers with specific counts of aiding the filing of false tax returns, including Natashia Tucker’s personal returns. The Tuckers were arrested and made their initial appearances in court today.
An indictment is merely a formal charge by the grand jury. The defendants are presumed innocent unless and until proven guilty. If convicted of the conspiracy charge, Natashia and Detrick Tucker each face a maximum potential sentence of ten years’ imprisonment. Further, they face maximum of three years in prison for each count of conviction for aiding the filing of false tax returns.
The case is being prosecuted by Trial Attorneys Alexander Effendi and Charles Edgar Jr. of the Justice Department’s Tax Division and Michael Solis of the U.S. Attorney’s Office for the Middle District of Georgia. The case was investigated with the assistance of special agents of IRS-Criminal Investigation and the Georgia Department of Revenue.
More information about the Tax Division and its enforcement efforts can be found at www.justice.gov/tax
Georgia Husband and Wife Tax Return Preparers Indicted for Tax CrimesRead the Press Release
On March 14, 2013, a federal grand jury in Macon, Ga., returned an 18 count indictment alleging that Natashia and Detrick Tucker, a husband and wife couple who owned and operated a tax preparation business named T&T Express located in Pine Mountain, Ga., conspired to defraud the United States by preparing and filing fraudulent tax returns that illegally claimed inflated tax refunds for their clients. The indictment also charges both of the Tuckers with specific counts of aiding the filing of false tax returns, including Natashia Tucker’s personal returns. The Tuckers were arrested and made their initial appearances in court today.An indictment is merely a formal charge by the grand jury. The defendants are presumed innocent unless and until proven guilty. If convicted of the conspiracy charge, Natashia and Detrick Tucker each face a maximum potential sentence of ten years’ imprisonment. Further, they face maximum of three years in prison for each count of conviction for aiding the filing of false tax returns.
The case is being prosecuted by Trial Attorneys Alexander Effendi and Charles Edgar Jr. of the Justice Department’s Tax Division and Michael Solis of the U.S. Attorney’s Office for the Middle District of Georgia. The case was investigated with the assistance of special agents of IRS-Criminal Investigation and the Georgia Department of Revenue.
More information about the Tax Division and its enforcement efforts can be found at www.justice.gov/tax.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney’s Office at (478) 621-2601.
Former Social Worker Pleads Guilty to Health Care FraudRead the Press Release
Continued to Practice After Her License Was Suspended in 2005Greenbelt, Maryland – Rosemary McDowall, age 59, of Silver Spring, Maryland pleaded guilty today to health care fraud.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to her plea agreement, in 1996, McDowall, a licensed social worker, signed a contract to become a participating provider with Blue Cross Blues Shield of Maryland (BCBS). As a participating provider, McDowall was obligated to accept payment for services rendered directly from BCBS. Under the terms of her contract, McDowall was obligated to notify BCBS if she lost her license to practice as a social worker.
In 2005, McDowall’s license to practice as a social worker was suspended by the Maryland State Board of Social Work Examiners, for numerous violations. McDowall failed to report to BCBS that her license to practice was suspended, as was required under her contract, and she continued to see patients and caused claims to be submitted to BCBS. In 2008, BCBS terminated McDowall as a participating provider, but McDowall continued to be a non-participating provider with BCBS and was permitted to collect her allowed fees from the patient and then BCBS would reimburse the patient the allowed amount. Despite the fact that her license to practice social work had been suspended, McDowall continued to see patients and submitted claim forms to BCBS.
In 2010, BCBS learned that McDowall had not been licensed to practice social work since 2005 and stopped paying all claims submitted by McDowall or BCBS members who had seen McDowall for treatment. McDowall admitted that fraudulent claims submitted during the scheme total between $120,000 and $200,000.
McDowall faces a maximum sentence of 10 years in prison and a fine of $250,000 for health care fraud. As part of her plea agreement, McDowall will be required to pay restitution in the full amount of the loss. U.S. District Judge Roger W. Titus scheduled sentencing for July 8, 2013 at 3:00 p.m.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Mara Zusman Greenberg and Kristi N. O’Malley, who are prosecuting the case.
Former Mississippi Corrections Officer Pleads Guilty to Orchestrating Assault on InmateRead the Press Release
Kenny McLaughlin, 35, a corrections officer at the Stone County Regional Facility in Stone County, Miss., pleaded guilty today in federal court to ordering the beating of an inmate at the detention facility.
According to court documents filed in connection with his guilty plea, on May 12, 2008, McLaughlin, while working as a corrections officer, ordered an inmate to arrange an unwarranted assault on another inmate. As a result of McLaughlin’s order, the victim was assaulted by two fellow inmates in the shower area of the cellblock. McLaughlin was aware of the assault as it happened but did not notify any other officer or medical personnel of the assault. The victim suffered fractured ribs, cuts to his face and bruises to his chest.
“Law enforcement officers do not have the right to order that an individual, whether incarcerated or not, be beaten by others,” said Deputy Assistant Attorney General Roy L. Austin Jr. of the Department of Justice’s Civil Rights Division. “The Justice Department is committed to prosecuting law enforcement officers who violate the constitutional rights of individuals in their custody.”
The statutory maximum sentence for this offense is 10 years in prison. Sentencing is scheduled for June 26, 2013.
This case was investigated by the Gulfport Resident Agency of the Jackson, Miss., Division of the FBI and is being prosecuted by Assistant U.S. Attorney Glenda R. Haynes of the U.S. Attorney’s Office for the Southern District of Mississippi and Trial Attorney Dana Mulhauser of the Civil Rights Division of the Department of Justice.
Former Lake Forest Park Water Clerk Indicted for Embezzling More Than $350,000Read the Press Release
The former Office Manager of the Lake Forest Park Water District is being arraigned today on an indictment charging fifteen counts of wire fraud, announced U.S. Attorney Jenny A. Durkan. JACKEE BORMANN-ZWEEKHORST, 40, is scheduled to appear in U.S. District Court in Seattle at 2:30 today. The indictment alleges that BORMANN-ZWEEKHORST used a variety of schemes to embezzle more than $350,000 from the small water district between 2004 and 2011.
According to the indictment, BORMANN-ZWEEKHORST was responsible for submitting bills to King County for reimbursement from water district funds. BORMANN-ZWEEKHORST was supposed to prepare the vouchers and supporting documents for the water district commissioners to review and approve. The approved vouchers then went to King County for payment. Ms. BORMANN-ZWEEKHORT is alleged to have committed fraud through a variety of means. On multiple occasions BORMANN-ZWEEKHORST falsified time cards so that her children were paid for work never performed for the water district. The amount of money claimed via the falsified time cards was in excess of $100,000. The second aspect of the scheme involved the use of the water district credit card. BORMANN-ZWEEKHORST used the card to pay for personal items and then caused the payment of water district funds to pay the bill. Some of the expenses she billed to the water district card included college tuition for her child, hot tub parts and service, boating and automotive equipment, fishing gear and rental car expenses. The amount of fraud on the water district credit card exceeded $90,000. The final aspect of fraud was having the water district pay for personal items purchased with her American Express card and for other personal expenses, by claiming the expenses were work-related, when in fact, they were not. Many of the receipts submitted for reimbursement were fabricated to support purchases that never occurred. BORMANN-ZWEEKHORST sought reimbursement for more than $70,000 in personal items and for items never purchased through this aspect of the fraud.
Wire fraud is punishable by up to 20 years in prison and a $250,000 fine.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI and the Lake Forest Park Police Department. Significant assistance is being provided by the Washington State Auditor’s Office.
The case is being prosecuted by Assistant United States Attorney Matthew Diggs.
Felon Who Chased and Fired Gun at Car Full of Strangers Sentenced to 11 Years in PrisonRead the Press Release
A repeat offender with a history of assault and drug crimes was sentenced today in U.S. District Court in Seattle to 11 years in prison and three years of supervised release for two crimes in early April 2012 involving guns and explosives, announced U.S. Attorney Jenny A. Durkan. SHANE STEPHEN ANELLO, 37, pleaded guilty to unlawful possession of a stolen firearm and unlawful possession of a destructive device. The first charge stems from a car chase on April 3, 2012 where ANELLO started following and then shot at a car full of strangers. The second charge relates to the April 1, 2012, firebombing of a vehicle at the ‘Nickelsville’ homeless encampment in Seattle. At sentencing U.S. District Judge Richard A. Jones told him, “These were two crimes of violence, two crimes that caused horrific fear in the victims.”
“The random and dangerous actions of this defendant could have resulted in tragedy,” said U.S. Attorney Jenny A. Durkan. “He targeted strangers and the homeless. We need him off our streets for a significant period, with careful monitoring by Federal Probation on his release.”
According to documents filed in the case, just after midnight on April 3, 2012, three people were stopped at a red light at the Columbian Way exit from southbound Interstate 5. A man, later identified as ANELLO, pulled up next to the victim’s car at the light. ANELLO was driving a white Ford Escort. ANELLO made eye contact with the victims in the car. The victims had never encountered ANELLO before. When the light turned green, ANELLO began following the victims’ car. ANELLO turned off his car’s headlights and followed the victims at a high rate of speed. ANELLO attempted to ram the victims’ car, and ANELLO fired at least one shot at the victim car as he chased it. The victims saw the muzzle flash and heard the sound of a gunshot. Fortunately, they were able to get away from ANELLO. Seattle Police responded to their 9-1-1 call, and started canvassing the Georgetown area for the car. Police spotted the vehicle driving with its lights out, and cornered it in a parking lot. ANELLO was arrested and a Colt Python .38 caliber revolver and ammunition were found in the car.
After ANELLO was arrested and identified in the chase and shooting, Seattle Police linked him to the firebombing of a vehicle in the parking lot of the ‘Nickelsville’ homeless camp in South Seattle. ANELLO threw a ‘Molotov cocktail’ at the car belonging to the person who had barred him from returning to the homeless camp. The gas filled bottle caught the vehicle on fire, but fortunately the gas tank of the car did not explode – had that happened those nearby could have been badly injured or killed.
ANELLO is prohibited from possessing firearms because of these prior felony convictions in King County Superior Court: assault, 2003; delivery of cocaine, 2004; conspiracy to deliver cocaine, 2006; possession of cocaine, 2006, 2007, 2010; and assault and attempting to elude a police vehicle, 2008.
The case was investigated by the Seattle Police Department and Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) with assistance from the Seattle Fire Department.
The case was prosecuted by Assistant United States Attorney Todd Greenberg.
Federal Defendants Caught in Law Enforcement Sting Operation Get Significant Prison Terms for Gun and Drug CrimesRead the Press Release
Two federal defendants prosecuted as part of “Operation Oliver’s Twist” were sentenced today to significant prison terms, announced U.S. Attorney Jenny A. Durkan. The men were arrested in 2012 following the successful law enforcement operation where members of the Seattle Police Department, ATF and FBI operated a storefront purchasing drugs and stolen property, including firearms. The defendants sentenced today will serve their federal time in addition to state sentences.
“Every gun in the hands of a criminal presents a danger to the community. This operation took stolen firearms off the street and uncovered drug networks pumping oxycodone into our neighborhoods,” said U.S. Attorney Jenny A. Durkan. “I commend the good work of our state and federal law enforcement partners, as well as our counterparts in the King County Prosecutors Office who have held 34 defendants accountable.”
One of the defendants sentenced today, PATRICK KELLY ANKROM, 48, of Snohomish, Washington, pleaded guilty to conspiracy to distribute oxycodone and being a felon in possession of a firearm. U.S. District Judge Ricardo S. Martinez sentenced ANKROM to five years in prison and three years of supervised release. The federal sentence will be served consecutive to an additional 17 month sentence in Snohomish County. ANKROM sold oxycodone to undercover officers on multiple occasions in March and April 2011. On April 4, 2011, ANKROM sold officers three firearms that had been stolen in burglaries: a loaded Ruger .44 revolver; a Rock Island Armory .45 caliber semi-automatic pistol; and a GSG .22 caliber semi-automatic rifle. ANKROM was indicted February 29, 2012 and pleaded guilty July 27, 2012.
In the second case concluded today, U.S. District Judge Richard A. Jones sentenced SHAD BEACH, 38, of Seattle, to six years in prison and three years of supervised release for being a felon in possession of firearms. In April and May 2011, BEACH sold numerous stolen items, including vehicles and computers, to the undercover law enforcement officers who were operating the storefront. On May 2, 2011, BEACH sold the undercover officers numerous firearms he had stolen in burglaries. The firearms included: a Rohm .22 caliber revolver; a Ruger .22 caliber rifle; a Remington .243 caliber rifle; a Mossberg 410-gauge shotgun; a Remington .22 caliber rifle; and a Winchester 12-gauge shotgun. BEACH was indicted on February 29, 2012 and pleaded guilty on November 19, 2012. BEACH has a number of criminal convictions that preclude him from possessing firearms including: burglary, methamphetamine possession, attempted assault, eluding police, possession of stolen property, trafficking in stolen property, unlawful possession of a firearm and residential burglary and theft of a firearm.
“This investigation uncovered over 100 participants, but today we see two of the most brazen face justice for their actions,” said Special Agent-in-Charge Laura M. Laughlin of the FBI Seattle office. “Mr. Ankrom and Mr. Beach did not just sell stolen weapons and contraband, but they did so again and again. Without the joint SPD, ATF, and FBI effort on an inventive undercover operation, high-powered firearms could have ended up in the hands of violent criminals.”
“This was one of the most elaborate undercover operations our Department has conducted in over 33 years. Our detectives developed great cases on these two suspects and brought them to justice. Our communities can rest a little easier knowing these dangerous men, their illegal drugs and illegally-possessed guns have been removed from the streets of Seattle. This is just another example of the incredible work that the men and women of the Seattle Police Department perform each and every day,” said Chief John Diaz.
The cases were investigated by the Seattle Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the FBI. Special Assistant United States Attorney Stephen Hobbs handled the sentencing hearings today.Fairmont City Man Pleads Guilty to Cocaine ConspiracyRead the Press Release
A Fairmont City man pled guilty on March 29, 2013, in federal court to being a member of a large cocaine distribution organization, the United States for the Southern District of Illinois, Stephen R. Wigginton, announced today. Antonio O. Escobar, 27, pled guilty to Conspiracy to Distribute and Possess With the Intent to Distribute Cocaine. He also admitted the Forfeiture Allegation contained in the Indictment.
Escobar is currently scheduled to be sentenced on July 3, 2013, in United States District Court in East St. Louis. He faces a potential sentence of ten years to life in prison, a fine of up to $5,000,000, at least 5 years of supervised release, and a $100 special assessment.
To date, twenty-eight other members of the organization have been convicted and sentenced. One individual who was indicted at the same time as Escobar is pending trial. He is presumed to be innocent of all charges and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
Evidence in support of the indictment was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Participating agencies include the Drug Enforcement Administration (DEA), Internal Revenue Service, Criminal Investigations, the U.S. Immigration and Customs Enforcement Office of Homeland Security Investigations (ICE HSI), Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), U.S. Marshal Service, the Granite City Police Department, Fairmont City Police Department, Collinsville Police Department, Fairview Heights Police Department, Caseyville Police Department, Pontoon Beach Police Department, Park Hills (Missouri) Police Department, the St. Clair County Sheriff’s Department, and the Illinois State Police. This case is assigned to Assistant United States Attorney Randy G. Massey.
Eleven Men Indicted on Federal Drug Distribution and Firearm ChargesRead the Press Release
BOSTON - Ten Holyoke men, and one Springfield man, were charged today in federal court in Springfield on charges of distributing drugs and possessing firearms and ammunition. In addition, eight individuals were also charged with state drug charges.
Kelly Arzate, 29; Francisco Diaz, 34; Antonio Caraballo, 35; Luzander Montoya, 29; Miguel Medina, 30; William Rodriguez, 28; Pedro Colon, 31; Reynaldo Figueroa, 27; Miguel Alcazar, 23; and Edison Lajara, 25, all of Holyoke, and Charlie Santiago, 32, of Springfield, were charged in separate indictments with distributing and possessing with intent to distribute heroin or cocaine. Figueroa and Colon were also indicted for unlawful possession of a firearm.
The indictments allege that each defendant distributed heroin or cocaine in Holyoke between August of 2012 and March of 2013. The indictments further allege that Figueroa and Colon also possessed a firearm and ammunition during that time period. The indictments were the result of a long-term investigation by the law enforcement into heroin and cocaine trafficking in Holyoke by members of the La Familia and Latin Kings street gangs.If convicted on these charges, Arzate faces up to life in prison, Montoya, Figueroa, Colon, Santiago, Caraballo, Alcazar and Lajara, face up to 30 years and Diaz, Rodriguez, and Medina face up to 20 years. In addition, Figueroa and Colon also face up to 10 years on the firearms charges.
United States Attorney Carmen M. Ortiz; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Office; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration - Boston Field Division; Hampden County District Attorney Mark. G. Mastroianni; United States Marshal John Gibbons; Hampden County Sheriff Michael Ashe; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Holyoke Police Chief James M. Neiswanger, made the announcement today.
The cases are being prosecuted by Assistant U.S. Attorneys Paul Hart Smyth and Todd E. Newhouse of Ortiz’s Springfield Office. The state cases are being prosecuted by the Hampden County District Attorney’s Office.
The details contained in the indictments are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dyersburg Man Pleads Guilty to Felony Firearms Possession Following Robbery, Attempted MurderRead the Press Release
Jackson, TN – Craig Michael Barbee, 39, of Dyersburg, TN pleaded guilty today to one count of being a felon in possession of a firearm, announced U.S. Attorney Edward L. Stanton III.
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According to the indictment and statements made during the plea hearing, on May 18, 2012, Barbee used a .38 Special revolver in an attempt to rob the Dollar General Store in Friendship, TN. He was confronted during the attempted robbery by off-duty Friendship Police Chief Bill Garret. During an attempt to disarm the gunman, Garret was shot in the abdomen. After robbing the business and several patrons, Barbee fled the scene before officers with the Friendship Police Department and Crockett County Sheriff’s Deputies could arrive. Garret has fully recovered from his injuries.
The following day, the Lauderdale County Sheriff’s Department received a tip that Barbee was in or around Halls, TN. Lauderdale County Deputies Steve Jackson and Kurt Kissell observed a man matching Barbee’s description riding a bicycle. When they approached, Barbee resisted arrest. The deputies recovered a firearm from Barbee’s waistband.
“The violent nature of Barbee’s brazen and criminal acts, including his willingness to fire upon a member of law enforcement, underscores the threat that he posed to the community as a whole,” said U.S. Attorney Stanton. “We will remain vigilant in aggressively prosecuting those individuals who violate federal firearm laws and endanger the safety of our citizens.”
Barbee will appear before U.S. District Judge J. Daniel Breen on June 28, 2013, at the Jackson Federal Courthouse for sentencing. He is still facing charges of Attempted First-Degree Murder and Aggravated Robbery in state court.
The case was investigated by the ATF; the Friendship Police Department; the Crockett County Sheriff’s Department; the Lauderdale County Sheriff’s Department; and the Tennessee Bureau of Investigation. Assistant U.S. Attorney Victor L. Ivy represented the government.District Man Pleads Guilty to Robbery and Weapons Charges in Hold-Up of Northwest Washington Store-Gun and Other Evidence Tied Him to the Crime-Read the Press Release
WASHINGTON - Torron Frieson, also known as Torron Frierson, 35, of Washington, D.C., has pled guilty to charges stemming from a robbery earlier this year of a liquor store and market in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced today.
Frieson pled guilty on March 25, 2013, in the Superior Court of the District of Columbia, to one count of robbery and two related firearms offenses. The Honorable Patricia A. Broderick scheduled sentencing for May 22, 2013. He faces a statutory maximum of 15 years in prison for robbery and up to 25 additional years for the weapons charges.
According to the government’s evidence, on Feb. 7, 2013, at about 8:35 p.m., Frieson entered the M & S Liquor Store and Market in the 200 block of Upshur Street NW. He pulled a mask over his face, grabbed a bag of chips, and walked to the counter across from the glass-empaneled cashier booth. As the cashier prepared to provide change for the chip purchase, Frieson walked around the counter and into the cashier’s booth, produced a long black handgun which appeared to be operable, pointed it at the cashier, and grabbed money from the register.
The cashier attempted to move the gun away from him and a physical struggle ensued. During the struggle, the cashier was struck and items in the store were broken. Frieson’s gun and car keys fell to the floor, and parts of the mask came off his face. The cashier threw the gun down an aisle and ran out the store. Frieson then retrieved the gun, and fled the scene.
Officers from the Metropolitan Police Department (MPD) determined that the defendant had been in the store to purchase beer minutes before he returned for the robbery. Officers also determined that the set of keys left behind by the defendant belonged to a Dodge Durango parked in an alley by the store. Officers found a .45-caliber cartridge stamped 45 Colt Hornady inside the store near the cashier counter. The Dodge Durango was registered to Frieson.
Pursuant to a search warrant, the Dodge Durango was searched and the beer that Frieson had purchased minutes before the robbery was inside the car. Frieson also was identified in a photo array. Frieson was arrested on Feb. 15, 2013 at a residence in Northeast Washington. Inside of one of the bedrooms at the residence was a black Ruger .45 caliber revolver with six cartridges stamped 45 Colt Hornady.
In announcing the plea, U.S. Attorney Machen commended those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Debra McPherson and Assistant U.S. Attorney Natalia Medina, who is prosecuting the case.
13-111District Man Pleads Guilty to Armed Robbery, Admits Stealing Dog from Woman at Gunpoint-Defendant Told Victim: “Yorkies Cost A Lot of Money”-Read the Press Release
WASHINGTON – Christopher Young, 18, of Washington, D.C., has pled guilty to a charge of armed robbery stemming from an attack earlier this year in which he stole a dog from a woman at gunpoint, U.S. Attorney Ronald C. Machen Jr. announced today.
Young pled guilty on March 22, 2013 in the Superior Court of the District of Columbia. The Honorable Robert I. Richter scheduled sentencing for May 20, 2013. The charge carries a statutory maximum of 30 years in prison.
According to the government’s evidence, on Jan. 5, 2013, at about 10:35 a.m., Young approached a woman who was walking her Yorkshire Terrier in the area of Fifth and Kennedy Streets NE. Young displayed a handgun and said, “Give me your dog. Yorkies cost a lot of money.” He then grabbed the victim’s dog and ran toward Chillum Place NE.
The victim, who yelled for help, noticed that Young dropped his phone on Kennedy Street directly next to where the dog’s leash had dropped. While Young continued running, the dog escaped and ran to its home. Officers with the Metropolitan Police Department (MPD) determined that the dropped phone belonged to Young, and learned that he had a GPS device on his ankle. Police obtained Young’s GPS records, which placed him directly in the area of 5th and Kennedy at the time of the robbery as well as in the flight path described by witnesses.
In announcing the plea, U.S. Attorney Machen commended those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Debra McPherson and Assistant U.S. Attorney Natalia Medina, who is prosecuting the case.
13-110Defendants Indicted for Defrauding NASA and NSFRead the Press Release
SAN JOSE - A federal grand jury in San Jose indicted Ali Kashani, of San Jose, and Yang Zhao, of El Cerrito, Wednesday with wire fraud and conspiracy to commit wire fraud, United States Attorney Melinda Haag announced. Mr. Kashani was also indicted for money laundering.
According to the indictment, Mr. Kashani, 52, and Ms. Zhao, 40, through their scientific research company, Atlas Scientific, are alleged to have defrauded the National Science Foundation (NSF) and the National Aeronautics and Space Administration (NASA) by creating the false impression that they had not applied for overlapping Small Business Innovation Research (SBIR) grants with both NSF and NASA. The SBIR program requires that grantees disclose similar or “essentially equivalent” research proposals the grantee has submitted to other federal agencies.
Atlas Scientific, a San Jose-based research company, performed research into adhesive tape based on carbon nanotubes. Mr. Kashani, the owner and founder of Atlas Scientific, and Ms. Zhao, Atlas’s principal investigator, applied for and received multiple research grants from NSF and NASA. During each application process, Mr. Kashani and Ms. Zhao allegedly denied having submitted overlapping project proposals to both NSF and NASA. Mr. Kashani and Ms. Zhao also allegedly denied already having received funding from NSF and NASA, when they requested additional grant monies.
Ms. Zhao is additionally alleged to have misrepresented her employment status with the University of California Berkeley, when she applied for these grants.
Yesterday, Mr. Kashani was arrested, and made his initial appearance in federal court in San Jose. Mr. Kashani is currently detained pending a hearing on Tuesday, April 2 at 9:30AM before Magistrate Judge Grewal.
Ms. Zhao is currently living in the People’s Republic of China.
The maximum penalty for each count of Conspiracy to Commit Wire Fraud in violation of Title 18, United States Code, Section 1349, and for the substantive Wire Fraud counts, is 20 years imprisonment and a fine of $250,000 fine, or twice the gross gain or gross loss from the offense, plus restitution. The maximum penalty for each count of Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activity, in violation of Title 18, United States Code, Section 1957(a), is 10 years imprisonment and a fine of $250,000 fine, or twice the amount of the criminally derived property involved in the transaction, plus restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Jeff Schenk is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Kamille Singh. The prosecution is the result of an investigation by the National Science Foundation Office of the Inspector General, NASA Office of the Inspector General, and the Internal Revenue Service Criminal Investigation.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Mr. Kashani and Ms. Zhao must be presumed innocent unless and until proven guilty.
(Kashani and Zhao indictment )
Cupertino Businessman Charged with High-Tech Worker Visa FraudRead the Press Release
SAN JOSE, CA - A Cupertino businessman made his initial appearance in federal court yesterday after being charged with 19 counts of Visa Fraud, U.S. Attorney Melinda Haag announced.
According to an indictment filed on March 27, 2013, Balarkishan Patwardhan made false statements in visa petitions for 19 applicants, in violation of Title 18, United States Code, Section 1546(a). The indictment alleges that Patwardhan knowingly submitted false immigration forms and supporting documentation to the government related to I-129 petitions. I-129 petitions relate to the H-1B high-technology worker visa program which requires, among other things, that an American employer certify it has high-technology jobs that cannot be filled by Americans. The indictment alleges that Patwardhan falsely represented to the government that 19 non-immigrant applicants had high technology job offers with an American employer, when in reality he knew that he did not have jobs for the applicants.
Patwardhan was arrested today, and was released on a $50,000 bond with one of the conditions of his pretrial release being that he not provide consulting services for technology companies or provide any visa services. His next scheduled court appearance is April 22, 2013 at 1:30 p.m. before United States District Judge Edward J. Davila.
The maximum statutory penalty for Visa Fraud, in violation of Title 18, United States Code, Section 1546(a) is 10 years in prison and a $250,000 fine. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Jeff Nedrow and Joseph Fazioli are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Susan Kreider. The prosecution is the result of an investigation led by the U.S. Department of State Diplomatic Security Service’s representative to the Document and Benefit Fraud Task Force (DBFTF) overseen by U.S. Immigration and Customs Enforcement Homeland Security Investigations. The DBFTF is a multi-agency task force that coordinates investigations into fraudulent immigration documents. U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security also assisted with the investigation.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Mr. Patwardhan must be presumed innocent unless and until proven guilty
Chubbuck Woman Admits Theft of Government PropertyRead the Press Release
Agrees to Pay Full Restitution of $103,511.76
POCATELLO – Leslie A. Briggs, 36, of Chubbuck, Idaho, pleaded guilty today in United States District Court to theft of government property, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Briggs was employed as assistant to the manager of the Aid for Friends Representative Payee Program, in which the Social Security Administration sends payments for beneficiaries to Aid for Friends. Aid for Friends then administers the funds and pays for the beneficiary’s personal expenses. According to the plea agreement, Briggs had signing authority on the Aid for Friends Social Security Administration trust account at Wells Fargo Bank, where all beneficiaries’ Social Security funds are deposited. Briggs admitted that from November 2008 to December 2010, she wrote checks on the trust account, without authorization, for personal expenses, including credit card bills, insurance and a home loan. Briggs agreed to pay full restitution of $103,511.76.
The charge is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for June 18, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Social Security Administration, Office of Inspector General-Office of Investigations and the Pocatello Police Department.
Charging Documents: U.S. V. Michael SteinbergRead the Press Release
U.S. v. Michael Steinberg S4 Indictment
CDW-Government to Pay U.S. $5,663,902 <br /> to Resolve False Claims Act AllegationsRead the Press Release
CDW-Government LLC (CDW-G) has agreed to pay $5.66 million to resolve allegations that it submitted false claims in connection with a U.S. General Services Administration (GSA) contract, the Justice Department announced today. CDW-G is a wholly-owned subsidiary of Illinois-based CDW Corporation and a reseller of information technology, equipment, services, office supplies and related products. The settlement resolves allegations that, during the period 1999 to 2011, CDW-G improperly charged government purchasers for shipping, sold products to the United States that were manufactured in China and other countries that are prohibited by the Trade Agreements Act, and underreported sales in order to avoid paying GSA its “Industrial Funding Fee,” a fee based on total contract sales that is designed to cover GSA’s costs of contract administration.
“Protecting the federal procurement process is a top priority for the Department of Justice,” said Stuart F. Delery, Acting Assistant Attorney General for the Department of Justice’s Civil Division. “Contractors who abuse that process and undermine American trade interests will be held accountable for their actions.”
“My office will not tolerate any abuse of the contracting process with the United States,” said Stephen R. Wigginton, U.S. Attorney for the Southern District of Illinois. “My warning is both simple and certain: If you knowingly overcharge the United States, we will pursue all remedies available to us and we will recover the government’s losses.”
The allegations arose from a lawsuit filed in a federal court in East Saint Louis, Ill., under the qui tam or whistleblower provisions of the False Claims Act. Those provisions allow private individuals known as “relators” to sue on behalf of the United States and to share in the proceeds of any settlement or judgment that may result. The relator in this case, former CDW-G sales representative Joe Liotine, will receive $1,585,892.56 of the total recovery as a statutory award. The relator may also be entitled to receive additional amounts from the defendant for attorneys’ fees and costs.
The claims settled by this agreement are allegations only, and there has been no determination of liability. The case is captioned U.S. ex rel. Joe Liotine, vs. CDW-Government, Inc., 05-cv-33-DRH-DGW. The settlement was the result of a coordinated effort by the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Southern District of Illinois and the GSA Office of Inspector General.
Bio-diesel Fuel Company Owner Sentenced to 188 Months in Federal Prison on Wire Fraud, Money Laundering and False Statements ConvictionsRead the Press Release
Jeffrey Gunselman Also Fined $175,000 and Ordered to Pay Nearly $55 Million in Restitution
LUBBOCK, Texas — Jeffrey David Gunselman, 30, was sentenced today by U.S. District Judge Sam R. Cummings to 188 months in federal prison, fined $175,000 and ordered to pay $54,973,137 in restitution, following his guilty plea in December 2012 to an Indictment charging 51 counts of wire fraud, 24 counts of money laundering and four counts of making false statements in violation of the Clean Air Act. Gunselman has been in custody since July 2012. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
“I commend the excellent investigative work done by special agents and investigators with EPA’s Criminal Investigation Division and the U.S. Secret Service in this complex fraud case,” said U.S. Attorney Saldaña.
“Congress created the Renewable Fuel Standard to ensure that transportation fuel sold in this country contains a minimum amount of renewable fuel,” said Ivan Vikin, Special Agent in Charge of EPA’s criminal enforcement program in Texas. “Today’s judicial action demonstrates the consequences for exploiting the Renewable Fuels program in order to steal millions of dollars from customers and taxpayers.”
Gunselman was the owner of Absolute Fuels, LLC, dba Absolute Fuels, LLC (Absolute Fuels), which he formed in April 2009. He was also named as Governing Person and/or as Registered Agent for other business entities associated with Absolute Fuels, LLC, including Absolute Fuels, LLC; Absolute Milling, LLC; Ellipse Energy, LLC; 21 Investments, LLC; and YGOG Holdings, LLC. However, Gunselman admitted that these entities are solely alter egos of himself, as an individual, as he alone owns, manages, directs and controls each of them and each has no separate and distinct existence from him.
Gunselman admitted that from September 2010 to October 2011, he devised a scheme to defraud the Environmental Protection Agency (EPA) by falsely representing that he was in the business of producing bio-diesel fuel, yet Gunselman did not have a bio-diesel fuel-producing facility. Instead, Gunselman’s business operation consisted of falsely generating renewable fuel credits and selling them to oil companies and brokers. He instructed purchasers to wire payments to a bank account he solely controlled, and as a result, approximately $41,762,236 was deposited into that account.
From September 2010 to mid-October 2011, Gunselman conducted 51 fraudulent transactions, which were transmitted by wire communications, that represented to the EPA that bio-diesel fuel had been produced at the Absolute Fuels facility in Anton, Texas, when in fact, no bio-diesel fuel had been produced. This ultimately resulted in Gunselman requesting and receiving payments, by electronic funds transfer, of approximately $41,762,236.
Regarding the money laundering convictions, during the same time period, Gunselman engaged in monetary transactions in criminally derived property by purchasing real and personal property valued at approximately $12 million with the funds derived from the wire fraud. Included in that property are: several vehicles, including a Bentley, Mercedes-Benz, Lexus, Cadillac and Shelby Cobra; a Patton Military Tank; a Gulfstream airplane, professional basketball season tickets and corporate sponsorship; and agricultural, business and residential real estate.
The false statements convictions stem from Gunselman making material false statements to the EPA, falsely claiming and representing that bio-diesel fuel, a renewable fuel, had been produced, generating renewable fuel credits, when Gunselman well knew that no bio-diesel fuel had been produced.
The case was investigated by the EPA Criminal Investigation Division and the U.S. Secret Service.
Assistant U.S. Attorneys Paulina Jacobo and Justin Cunningham, of the U.S. Attorney’s Office in Lubbock, were in charge of the prosecution. Assistant U.S. Attorney John J. de la Garza handled the forfeiture.
Bankruptcy Attorney Pleads Guilty to Tax Evasion ChargeRead the Press Release
LAS VEGAS, Nev. – Las Vegas bankruptcy attorney Randolph H. Goldberg pleaded guilty today to willful tax evasion for filing tax returns that significantly understated his taxable income and for attempting to hide the income through the use of nominee bank accounts, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Goldberg pleaded guilty before U.S. District Judge Gloria Navarro to one count of attempt to evade or defeat tax for the tax year 2008, and is scheduled to be sentenced on May 23, 2013, at 8:30 a.m.
“Paying income tax is a solemn obligation of citizenship,” said U.S. Attorney Bogden. “It is never a good idea to try to hide your income from the IRS, or falsify your tax returns. You will most likely be caught, convicted and sent to prison.”
“Those who are well versed in the law should profoundly know they are not above the law,” said Paul Camacho, Special Agent in Charge of IRS Criminal Investigation for Nevada.
According to the plea agreement, during 2008, Goldberg was a licensed attorney in Nevada and practiced in the area of bankruptcy law. Goldberg’s law firm, Randolph Goldberg, Esq., was organized and incorporated under Subchapter S of the IRS Code, which made any income generated by the firm taxable individually to Goldberg. In 2009, Goldberg willfully caused the filing of false and fraudulent federal tax returns for himself and the law firm, knowing that the returns contained false and fraudulent information and understated his true income in calendar year 2008. During 2008 and 2009, Goldberg also attempted to conceal the true income of his law firm by causing proceeds generated by the firm to be deposited directly into his personal bank account and to be deposited into a bank account held by a nominee corporation, separate from his law firm practice.
Goldberg was originally charged in September 2012 with four counts of tax evasion, in addition to five counts of structuring financial transactions. The government will move to dismiss the other charges at sentencing. Under federal sentencing rules, the tax loss in the counts originally charged will be considered at sentencing.
Goldberg faces up to five years in prison and a fine of up to $250,000. As part of his plea agreement, Goldberg will voluntarily suspend his license to practice law in Nevada for at least two years and pay full restitution to the IRS for all tax losses resulting from his evasion.
The case is being investigated by IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorneys Christina M. Brown and Steven W. Myhre.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Audubon County Men Sentenced to 5 Years in Prison for Conspiracy to Manufacture MarijuanaRead the Press Release
DES MOINES, IA - On March 26, 2013, Paul Joseph Irlmeier, age 44, and co-defendant, Randy Frank Irlmeier, age 63, both from rural Audubon County, Iowa, were sentenced to 60 months imprisonment for conspiracy to manufacture marijuana. In addition, the Court ordered Randy Frank Irlmeier to forfeit $400,000 and Paul Joseph Irlmeier to forfeit $104,503 for their roles in the conspiracy.
As part of their guilty pleas, the Irlmeiers admitted to conspiring to grow, harvest and distribute marijuana at their respective rural Audubon County residences between approximately 2005 and October 27, 2010. On October 27, 2010, law enforcement located evidence of a sizable marijuana growing operation, including a large quantity of mature marijuana plants at Randy Irlmeier’s residence. Both defendants admitted responsibility for at least 100 marijuana plants during the conspiracy.
The investigation was conducted by the Iowa Division of Narcotics Enforcement and the Audubon County Sheriff’s Office, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
28 March 2013
Wyoming Man Charged with Assault Resulting in Serious Bodily Injury and Assault with A Dangerous Weapon with Intent to Do Bodily HarmRead the Press Release
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced that on March 21, 2013, Shawn Antelope, Jr., a 19-year-old Northern Arapaho Tribal Member, was charged in an indictment with one count of assault resulting in serious bodily injury in violation of 18 U.S.C. §§ 113(a)(6) and 1153 and one count of assault with a dangerous weapon with intent to do bodily harm in violation of 18 U.S.C. §§ 113(a)(3) and 1153. The charges against Mr. Antelope stem from an incident that occurred on August 1, 2012 and an incident that occurred on December 18, 2012, both on the Wind River Indian Reservation. Mr. Antelope is facing a potential ten (10) year term of imprisonment on each count, and could be ordered to pay restitution, a fine, and special assessment. An indictment is only an accusation. In every criminal case, the accused is presumed to be innocent until proven guilty, and the government always has the burden of proving guilt at trial beyond a reasonable doubt.
Vice-President Indicted for Bank EmbezzlementRead the Press Release
HOUSTON – A Houston man has appeared for arraignment in a 12-count indictment alleging bank embezzlement, United States Attorney Kenneth Magidson announced today.
A federal grand jury returned the sealed indictment against Shawn Nelson, 39, on Feb. 20, 2013. He was arrested Friday, March 22, 2013, made his initial appearance the following Monday and was arraigned today by U.S. Magistrate Judge Frances Stacy. He was permitted release pending further criminal proceedings.
According to the indictment, Nelson was a vice-president of lending at Members Choice Credit Union. From 2001 through 2009, Nelson allegedly opened signature loan accounts in his friends’ and family members’ names without their authorization and subsequently began withdrawing money from those accounts. By the time the fraud was discovered, Nelson had withdrawn more than $340,000, according to allegations in the indictment.
If convicted, he faces up to 30 years in prison as well as a possible $1 million fine for each count. The United States is also seeking forfeiture of approximately $340,000.
The investigation was conducted by the U.S. Secret Service. The case is being prosecuted by Assistant United States Attorney Sharad S. Khandelwal.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Vail, Iowa, Man Pleads Guilty to Methamphetamine ChargesRead the Press Release
A man who possessed with intent to distribute methamphetamine pled guilty March 26, 2013, in federal court in Sioux City.
Jeffrey Duane Krowiorz, II, 24, from Vail, Iowa, was convicted of possessing with intent to distribute methamphetamine. In 2007, Krowiorz was convicted twice of possession of precursors to manufacture methamphetamine.
At the plea hearing, Krowiorz admitted that on September 28, 2012, he possessed over 18 grams of actual (pure) methamphetamine and intended to distribute the methamphetamine to other persons. Krowiorz attempted to flee (on foot) when officers made contact with him regarding an outstanding arrest warrant. Krowiorz was apprehended a short distance away and officers seized from Krowiorz three separate baggies of methamphetamine concealed within a body spray container converted into a storage container.
Sentencing before United States District Court Judge Donald E. O’Brien will be set after a presentence report is prepared. Krowiorz was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Krowiorz faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $8,000,000 fine, a special assessment of $100, and at least eight years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Department of Narcotics Enforcement, Spirit Lake Police Department, and the Iowa Division of Criminal Investigations.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-4098.
Upper Marlboro Man Sentenced to 10 Years in Prison for Distribution of Crack CocaineRead the Press Release
Greenbelt, Maryland - U.S. District Judge Peter J. Messitte sentenced Weldon Emanuwell Gordon, age 35, of Upper Marlboro, Maryland, today to 10 years in prison followed by five years of supervised release for possession with intent to distribute crack cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to Gordon's plea agreement, in January 2009, law enforcement executed a search warrant at his apartment in Upper Marlboro and seized 379.2 grams of crack cocaine, an electronic scale with cocaine residue, and $18,729 in cash.
Gordon is currently serving a life sentence for his conviction in the District of Columbia for conspiring to murder a witness in a separate case.
United States Attorney Rod J. Rosenstein commended the DEA and the Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney William D. Moomau, who prosecuted the case.
U.S. Attorney Welcomes Civil Rights LeaderRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT – U.S. Attorney John M. Bales welcomed Reverend William A. Lawson as the guest speaker at a special program commemorating the observance of African American (Black) History in Beaumont today.
This year marks two important anniversaries in the history of African Americans and the United States. On January 1, 1863, the Emancipation Proclamation set the United States on the path of ending slavery. A wartime measure issued by President Abraham Lincoln, the proclamation freed relatively few slaves, but it fueled the fire of the enslaved to strike for their freedom.
In 1963, a century later, America once again stood at the crossroads. Nine years earlier, the U.S. Supreme Court had outlawed racial segregation in public schools, but the nation had not yet committed itself to equality of citizenship. Segregation and innumerable other forms of discrimination made second-class citizenship the extra-constitutional status of non-whites. Another American president caught in the gale of racial change, John F. Kennedy, temporized over the legal and moral issue of his time. Like Lincoln before him, national concerns, and the growing momentum of black mass mobilization efforts, overrode his personal ambivalence toward demands for black civil rights. On August 28, 1963, hundreds of thousands of Americans, blacks and whites, Jews and gentiles, Protestants and Catholics, marched to the memorial of Abraham Lincoln, the author of the Emancipation Proclamation, in the continuing pursuit of equality of citizenship and self-determination. It was on this occasion that Martin Luther King, Jr. delivered his celebrated “I Have a Dream” speech. Just as the Emancipation Proclamation had recognized the coming of the end of slavery, the March on Washington for Jobs and Freedom announced that the days of legal segregation in the United States were numbered.
Rev. Lawson, a native of St. Louis, Missouri, earned Bachelor of Divinity and Master of Theology degrees from Central Baptist Theological Seminary. After graduation, he moved to Houston to serve as Professor of Bible and Director of the Baptist Student Union at Texas Southern University. Rev. Lawson is the founding pastor of Wheeler Avenue Baptist Church. With the help of his wife, Audrey, the church was first established in their home in June 1962. Since the time of the church’s birth during the early years of the Civil Rights Movement, Rev. Lawson has been deeply involved in advocacy activities for African Americans, Hispanics, women, and the poor. During his 42-year tenure as pastor, Wheeler Avenue Baptist Church grew to over 8,000 members with many outreach programs. Rev. Lawson has received honorary doctorates from Howard Payne University, The University of Houston, and Texas Southern University. He is now retired from his pastorate, but Rev. Lawson remains active in various community causes, civic clubs and local government efforts.
As a young pastor, Rev. Lawson became acquainted with Martin Luther King, Jr. Dr. King once visited Wheeler Avenue Baptist Church, when it was only a one-story, frame house with 50-60 members. Dr. King invited Rev. Lawson to join him, Dr. Ralph Abernathy, and others to be a part of the Southern Christian Leadership Conference in Atlanta. Fearing that his departure would seriously weaken his small church, Rev. Lawson declined. He continued to work closely with Dr. King to establish the Houston chapter of the SCLC and thus was instrumental in pioneering the cause of civil rights there.
In 1996, the William A. Lawson Institute for Peace and Prosperity (WALIPP) nonprofit organization was established by a group of community leaders to honor Rev. Lawson on the occasion of his 50 years in the ministry. WALIPP is the parent agency of WALIPP-Texas Southern University Preparatory Academy, WALIPP Senior Residence independent living facility and WALIPP Public Defender Program, all located in Houston.
Rev. Lawson graciously agreed to share his personal experiences with Dr. King, with U.S. Attorney Bales and employees of the Eastern District of Texas. The event was held in Beaumont and transmitted to employees in the Lufkin, Tyler, Plano, Sherman, and Texarkana Divisions.
U.S. Attorney Enters into A Consent Decree with Albuquerque Rental Property OwnerRead the Press Release
Consent Decree Resolves Fair Housing Act Claims
Of Discrimination Against A Tenant With DisabilitiesALBUQUERQUE – U.S. Attorney Kenneth J. Gonzales announced that his office has entered into a court-approved consent decree which resolves the government’s claims that Michael F. Croom, the owner and manager of rental property in Albuquerque, N.M., violated the Fair Housing Act (FHA) by discriminating against a tenant with disabilities.
The government’s civil complaint was filed in federal court in Nov. 2012, on behalf of a tenant who became disabled as a result of a medical condition more than two years after living in a house he and his family rented from Mr. Croom. It alleged that Mr. Croom engaged in discriminatory practices and retaliation based on the tenant’s disability in violation of the FHA by unlawfully refusing to permit the tenant to make reasonable modifications to the rented premises to accommodate the tenant’s disability at the tenant’s own expense and with the assurance that the tenant would restore the premises to their original condition. The complaint also alleged that Mr. Croom unlawfully retaliated against the tenant by evicting him after he requested permission to make reasonable modifications to accommodate his disability.
Under the consent decree, which is effective for three years, Mr. Croom is prohibited from: discriminating against any person in the sale or rental of a dwelling based on a disability; refusing to permit any person with a disability from making reasonable modifications to rental premises that are necessary to accommodate the person’s disability; and intimidating or threatening any person who exercises rights protected by the FHA. The consent decree also requires Mr. Croom to:
Implement standards and procedures for receiving and handling requests made by persons with disabilities for reasonable modifications and accommodations at his rental properties; Inform all tenants upon execution of their leases that they may make reasonable modifications to their dwellings at their own expense to make the dwellings more accessible; Include a Reasonable Accommodation or Modification for Persons with Disabilities Policy in all rental leases; Notify all persons responsible for the management and maintenance of his rental properties of their obligations under the consent decree; Ensure that he and anyone else who has responsibility for management of his rental properties attend an educational program concerning the substantive provisions of federal, state and local fair housing laws and regulations; Submit to the government written reports regarding his efforts to comply with the consent decree on a semi-annual basis; and
Pay a $200,000 monetary award to the tenant on whose behalf the government’s complaint was filed.The FHA prohibits discrimination in the sale or rental of a dwelling to a buyer or renter because of a disability. Discrimination includes the refusal to permit, at the expense of a person with a disability, reasonable accommodations of the premises where the renter agrees to restore the interior of the premises to their pre-existing condition.
“My Office is committed to ensuring that all New Mexico residents have equal access to housing,” said U.S. Attorney Gonzales. “We will continue to build on the Justice Department’s record of enforcing fair housing laws and removing barriers that are discriminatory to New Mexicans with disabilities.”
The government’s case was litigated by Assistant U.S. Attorney Ruth F. Keegan with assistance from the U.S. Attorneys’ Fair Housing Program in the Justice Department’s Housing and Civil Enforcement Section of the Civil Rights Division.
Fighting illegal discrimination in housing is a top priority of the Department of Justice and the U.S. Attorney’s Offices. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. More information about the laws enforced by the Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office is available at www.justice.gov/crt. Individuals who believe they have been victims of housing discrimination or have information can call the Housing Discrimination Tip Line at 1-800-896-7743, or email the Department of Justice at www.fairhousing.usdoj.gov.
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Consent Decree
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