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Tuesday 12 February 2013
District Man Sentenced to 20-Year Prison Term, Arrested After Authorities Intercept Heroin Shipments-Drugs Hidden in Lampshades, Dresses, Other Items-Read the Press Release
WASHINGTON - Gary Allen Lewis, 43, was sentenced today to a 20-year prison term on a federal drug charge stemming from an investigation into shipments of large quantities of heroin into Washington, D.C., U.S. Attorney Ronald C. Machen Jr. announced.
Lewis, of Washington, D.C., pled guilty in February 2012 in the U.S. District Court for the District of Columbia to a charge of possession with intent to distribute heroin. He was sentenced by the Honorable Robert L. Wilkins.
Lewis was arrested in August 2011, following an investigation led by the U.S. Department of Homeland Security and Metropolitan Police Department (MPD). Authorities intercepted a series of shipments of heroin before any of the drugs could be distributed on the street. The drugs were hidden in packages to be delivered to the residences of the defendant’s relatives in Northeast Washington. In the various shipments, heroin was hidden inside lampshades, pencil containers, the hems of dresses, and the lining of purses.
Overall, the drugs had an estimated street value of about $150,000.
According to the government’s evidence, on Aug. 4, 2011, agents from the U.S. Department of Homeland Security at John F. Kennedy International Airport in New York intercepted a package that had been shipped from India and was addressed to “Ebony Mays,” at a location in Northeast Washington, D.C. When agents opened the box, they found pillow covers and decorative lampshades. A further inspection of the lamp shades revealed heroin hidden in the shades’ frames. The total amount of heroin contained in the package was 480 grams.
A controlled delivery of the package was coordinated with law enforcement officials in Washington, D.C. On Aug. 10, 2011, an undercover officer attempted to deliver the package and was greeted at the location by the defendant’s sister, who agreed to accept the package after falsely identifying herself as “Ebony Mays.” A brief time later, Lewis arrived at his sister’s home to retrieve the package. Once Lewis had retrieved the package from inside of the house, he was stopped and arrested as he was trying to put the package into his vehicle.
In addition, on July 14 and 15, 2011, Lewis arranged to have two other packages of heroin, each containing about one-half kilogram of heroin, shipped to the United States. The heroin was to be hidden inside some other product to disguise it and prevent its detection by law enforcement. Both packages were to be delivered to the Northeast Washington home of Lewis’s mother. The first package contained dresses, with packages of heroin sewn into the hems. The second package contained two purses and three scarves. Inside the lining of each of the two purses was secreted a package of suspected heroin. Both packages were seized by the U.S. Customs and Border Protection component of the Department of Homeland Security.
An analysis by the U.S. Drug Enforcement Administration revealed that the two packages contained about 526.1 grams and 459.2 grams, respectively, of a mixture and substance containing a detectable amount of heroin.
Some time prior to Aug. 8, 2011, Lewis arranged to have yet another package of heroin shipped to the United States. The heroin was to be hidden inside another product in order to disguise it and to prevent its detection by law enforcement. The package was delivered to the Northeast Washington home of Lewis’s aunt. Lewis acknowledged that he asked his aunt to accept this package on his behalf. This package was seized by Customs and Border Protection on Aug. 8, 2011. The package contained pencil containers; hidden in each of the pencil containers was a mixture and substance containing a detectable amount of heroin. On Aug. 11, 2011, an undercover investigator from the U.S. Postal Inspection Service delivered the package to the listed address and it was accepted by the defendant’s aunt. After the passage of a certain amount of time, agents of the Department of Homeland Security retrieved the package. The suspected heroin was sent to the DEA for analysis. An analysis of that substance revealed that it contained 440.2 grams of a mixture and substance containing a detectable amount of heroin.
In announcing the sentence, U.S. Attorney Machen commended the work of members of the U.S. Department of Homeland Security and its U.S. Customs and Border Protection component, as well as the Metropolitan Police Department and the U.S. Postal Inspection Service. He also acknowledged the efforts of Assistant U.S. Attorneys Rikki McCoy, Arvind Lal, who secured the indictment in the case, and Emory V. Cole and Brittan K. Heller, who prosecuted the case.
13-050Discovery Bay Resident Faces Class A Misdemeanor Charges for Failing to File Federal Tax ReturnsRead the Press Release
OAKLAND, Calif. – William H. Paris Jr., aka Bubba Paris, was charged yesterday with failing to file tax returns with the IRS, United States Attorney Melinda Haag and IRS Criminal Investigation Special Agent in Charge Jose M. Martinez announced.
According to a Criminal Information, for the calendar years 2006, 2007 and 2008, Paris received gross income of $57,186.96, $83,856 and $41,700, respectively, but failed to file federal income tax returns for those years as required.
Paris, of Discovery Bay, Calif., is scheduled to be arraigned in federal court in Oakland, before United States Magistrate Judge Kandis A. Westmore, on March 4, 2013.
The maximum statutory penalty for each count of failure to file a tax return, in violation of Title 26, U.S.C. § 7203, a class A misdemeanor, is one year in prison and a fine of $100,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Charles Parker is the Special Assistant United States Attorney who is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Please note, an Information contains only allegations against an individual and, as with all defendants, Paris must be presumed innocent unless and until proven guilty.
Destin Man Pleads Guilty to Federal Election ViolationRead the Press Release
PENSACOLA, FLORIDA – Jay Odom, 56, of Destin, pleaded guilty today before Senior U.S. District Judge Lacey A. Collier to one count of causing a presidential campaign committee to make a false statement to the Federal Election Commission (FEC). The guilty plea was announced this afternoon by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and Robert O. Davis, Acting United States Attorney for the Northern District of Florida.
According to court documents, in approximately December 2007, Odom directly and indirectly solicited employees of his business entities and their family members to each make the maximum allowable contributions to the authorized campaign committee of a presidential candidate. The employees were encouraged to make these donations with the understanding that Odom would advance funds to or reimburse these individuals for their contributions. Odom admitted to both knowing that this activity was illegal and intending to conceal the true source and amount of the campaign contributions.
In 2007, Odom directly or indirectly used personal funds to reimburse individual contributions to the authorized campaign committee of the presidential candidate for a total of $23,000. As a result of this scheme, Odom intentionally caused the presidential candidate’s authorized campaign committee to file a report with the FEC that falsely stated that 10 individual donors had made federal campaign contributions when in fact each contribution was made by Odom.
At sentencing, scheduled for 10:30AM on April 23, 2013, Odom faces a maximum potential penalty of five years in prison.This case was investigated by the FBI. This case is being prosecuted by Assistant U.S. Attorney Randall J. Hensel and Trial Attorney Brian K. Kidd of the Criminal Division’s Public Integrity Section.
Deported Alien Charged with Violating Federal Immigration LawsRead the Press Release
ERIE, Pa. - A former resident of Guanajuato, Mexico has been indicted by a federal grand jury in Erie on a charge of violating federal immigration laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Maria Del Rocio Veloz-Alonso, 28, as the sole defendant. According to the indictment presented to the court, on or about January 14, 2013, VelozAlonso was found to be unlawfully present within the United States. Veloz-Alonso had been previously ordered deported and removed from the United States on August 27, 2010 and was removed from the United States on April 1, 2011. The defendant subsequently reentered the United States, and was found to be present in this country without the permission of the Secretary of the Department of Homeland Security.
The law provides for a maximum total sentence of 2 years in prison, a fine of$250,000, or both. Under the Federal Sentencing Guidelines; the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christine A. Sanner is prosecuting this case on behalf of the government.
The Bureau of Customs and Border Protection conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Deported Alien Charged with Illegally Re-entering United StatesRead the Press Release
ERIE, Pa. - A former resident of Oaxaca, Mexico has been indicted by a federal grand jury in Erie on a charge of violating federal immigration laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Evaristo Bautista-Santiago, 33, as the sole defendant.
According to the indictment presented to the court, on or about February 3, 2013, BautistaSantiago was found to be unlawfully present within the United States. Bautista-Santiago had been previously ordered deported and removed from the United States on April 13, 2001 and was removed from the United States on October 12, 2012. The defendant subsequently reentered the United States, and was found to be present in this country without the permission of the Secretary of the Department of Homeland Security.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christine A. Sanner is prosecuting this case on behalf of the government.
The Bureau of Customs and Border Protection conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Danny Thomas Fox Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on February 12, 2013, before U.S. District Judge Sam E. Haddon, DANNY THOMAS FOX, a 25-year-old resident of Poplar, appeared for sentencing. FOX was sentenced to a term of:
Prison: 35 months
Special Assessment: $100
Forfeiture: shotgun
Supervised Release: 3 years
FOX was sentenced in connection with his guilty plea to being a felon-in-possession of a firearm.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
On July 11, 2012, FOX, a convicted felon, was spotted by Fort Peck law enforcement standing by a vehicle with a shotgun in the middle of the night. He dropped the shotgun and began to run. Law enforcement pursued him, ultimately arresting him and securing the shotgun.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that FOX will likely serve all of the time imposed by the court. In the federal system, FOX does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Poplar Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Connecticut Man Sentenced to More Than 15 Years in Federal Prison for Operating Mortgage Fraud SchemeRead the Press Release
February 12, 2013The United States Attorney for the District of Connecticut announced that WILLIAM A. TRUDEAU, JR., 50, Norwalk, was sentenced today by United States District Judge Janet C. Hall in New Haven to 188 months of imprisonment, followed by five years of supervised release, for operating a mortgage fraud scheme in Fairfield County. In addition, TRUDEAU’s wife, HEATHER BLISS, 37, was sentenced today to 30 months of imprisonment, followed by three years of supervised release, for her role in the scheme. BLISS was also ordered to pay a fine of $12,500.
On October 9, 2012, a jury found Trudeau guilty of one count of conspiracy to commit bank fraud, mail fraud and wire fraud, and one count of wire fraud. On July 30, 2010, BLISS pleaded guilty to one count of conspiracy to commit wire fraud.
According to the evidence and witness testimony during TRUDEAU’s trial, in 2004, TRUDEAU and Joseph Kriz, a real estate attorney in Wilton, formed Aspetuck Building & Development through which TRUDEAU, Kriz and others intended to purchase, develop and sell properties. TRUDEAU was an unnamed principal in the business. BLISS was employed as a paralegal for Kriz and, in that capacity, had responsibility for preparing and maintaining all legal and bank documents related to real estate transactions handled by Kriz.
From approximately February 2004 to April 2010, TRUDEAU conspired with BLISS, Kriz, Fred Stevens, Thomas Preston and others to defraud federally insured financial institutions and mortgage lenders. As part of the scheme, TRUDEAU and his co-conspirators submitted false mortgage loan applications to financial institutions to obtain mortgages on various properties in Fairfield County in order to develop and sell the properties for profit, and to pay off debts owed to “hard money” lenders from whom they had previously obtained high interest loans. The mortgage applications, which included false income information and omitted the mortgage applicants’ true indebtedness, caused the financial institutions to issue mortgage loans on properties that TRUDEAU and his co-conspirators would not have otherwise been qualified to purchase, allowing the applicants to qualify for mortgages that far exceeded their ability to repay the loans.
As a paralegal, BLISS prepared and maintained numerous fraudulent mortgage documents involved in the scheme. She also overstated her income on mortgages for which she had personally applied, and applied for new mortgages within 60 days of receiving prior mortgages knowing that the earlier mortgage would not be revealed when BLISS’s credit report was run by the financial institution to which she applied.
BLISS also nominally owned Huntington South Associates, LLC, a shell company that TRUDEAU used to pay for personal expenses and to secure loans fraudulently. During the scheme, BLISS used mortgage funds that were wired into Huntington South Associates’ bank account as her “business income” on mortgage loan applications in order to qualify for additional mortgages, including a $1.3 million mortgage on a property in Westport.
As a result of a 2003 federal conviction for fraud and tax offenses, TRUDEAU was prohibited from owning or operating any business that was not in his own name, from incurring new credit charges or opening additional lines of credit without prior approval from the U.S. Probation Office, and he was required to release all of his financial information to the Probation Office. He also was ordered to pay more than $450,000 in restitution. According to the evidence and testimony at his trial, TRUDEAU’s name did not appear on any documentation related to the loans or the properties for which the loans were obtained, and money was hidden in bank accounts that were not in TRUDEAU’s name in part to prevent the collection of his court-ordered restitution.
Toward the end of the conspiracy, TRUDEAU, with the assistance of others, sought additional monies from a private lender purportedly to complete construction on one of the properties. TRUDEAU claimed to have a signed purchase contract for the property when, in truth, he did not. The evidence at trial established that TRUDEAU took the money for uses unrelated to the completion of the property.
Through this scheme, TRUDEAU and his co-conspirators fraudulently obtained more than $4 million in mortgage loans to purchase six properties in Westport and Newtown. To date, mortgage lenders have lost more than $1.9 million. In addition, during the scheme, TRUDEAU defrauded private lenders of a total of more than $1 million, and Kriz stole approximately $3.5 million from his IOLTA account. More than $1.2 million of the stolen IOLTA account funds were deposited into the bank account of Huntington South Associates and used during the conspiracy.
TRUDEAU and BLISS will be ordered to pay restitution of more than $4.2 million.
TRUDEAU, whose criminal history includes approximately 13 felony convictions, has been detained since August 9, 2011, when his bond was revoked.
Kriz, Stevens and Preston have pleaded guilty to charges related to their involvement in this scheme and await sentencing.
This matter was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Rahul Kale and Christopher Schmeisser.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Carnegie Man Charged with Possession of CocaineRead the Press Release
JOHNSTOWN, Pa. - A resident of Carnegie, Pa., has been indicted by a federal grand jury in Johnstown, Pa., on a charge of possession of cocaine, United States Attorney David J. Hickton announced today.
The one-count indictment named Brian J. Wimbley, 41.
According to the indictment, on Jan. 26, 2012, Wimbley possessed less than 500 grams of cocaine with the intent to distribute it.
The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Carbon County Woman Pleads Guilty to Federal Cocaine Trafficking ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Carbon County woman pleaded guilty today before Senior United States District Judge Edwin M. Kosik to the charge of conspiracy to distribute cocaine.
According to United States Attorney Peter J. Smith, Bonnie Vosburgh, age 22, of Nesquehoning, Carbon County, admitted to participating in a conspiracy to distribute crack cocaine and powder cocaine in the Carbon County area between January 2011 and December 2012.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Nesquehoning and Lansford Police Departments in Carbon County.
The case is being prosecuted by Assistant United States Attorney Robert J. O’Hara.
In this particular case, the maximum penalty under the federal statute is 40 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.
Californians Charged in Marijuana Distribution SchemeRead the Press Release
PITTSBURGH, Pa. -Two residents of Los Angeles, Calif., have been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Alexandra Ann Haag, 24, and Erica Rae Auer, 24.
According to the indictment presented to the court, from 2011 to April 20, 2012, Haag and Auer conspired to distribute less than 50 kilograms of marijuana.
The law provides for a maximum total sentence of up to five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory J. Nescott is prosecuting this case on behalf of the government.
The United States Postal Inspection Service, the Pennsylvania State Police, and United States Department of Homeland Security conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
CEO Pleads Guilty to Securities Kickback SchemeRead the Press Release
BOSTON - The CEO of a publicly-traded company was convicted today on charges that he paid kickbacks in return for purchases of his company’s stock.
Muhammad (M.J.) Shaheed, 45, pleaded guilty before U.S. District Judge Douglas P. Woodlock to three counts of wire fraud and three counts of mail fraud. Sentencing is scheduled for June 3, 2013.
Shaheed, who was the CEO of a publicly-traded company, Augrid Global Holdings Corporation, paid secret kickbacks to an investment fund representative. In exchange, the fund representative used fund monies to purchase stock in Shaheed’s company. The kickbacks were concealed through sham consulting agreements and other fraudulent documentation. In actuality, however, and unbeknownst to Shaheed, the purported investment fund representative was an undercover FBI agent.
The plea followed a year-long investigation focusing on preventing fraud in the microcap stock markets. Microcap companies are small, publicly-traded companies whose stock often trades at pennies a share. Fraud in the microcap markets is of increasing concern to regulators as such markets have proven to be fertile grounds for fraud and abuse. This is, in part, because accurate information about microcap stocks may be difficult for the average investor to find, since many microcap companies do not file financial reports with the SEC.
Shaheed is one of 15 defendants criminally charged for participating in this kickback scheme. Six of those charged have now pleaded guilty.
The statutory maximum sentence for each count is 20 years in prison, followed by three years of supervised release and a $250,000 fine.
The Securities and Exchange Commission, which conducted a parallel civil investigation alongside the FBI undercover operation, cooperated with criminal authorities in the investigation.
United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Sarah E. Walters and Vassili Thomadakis of Ortiz’s Economic Crimes Unit.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Businessman and Local Minister Sentenced to 55 Month Prison Term in $3.6 Million Tax Evasion CaseRead the Press Release
Jackson, TN – Isaac H. Brooks, Jr. 60, of Jackson, Tennessee, was sentenced today by U.S. District Judge J. Daniel Breen to 55 months in prison, for failing to pay more than $3.6 million in federal income taxes, announced U.S. Attorney Edward L. Stanton.
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On May 23, 2012, Brooks pled guilty to two counts of a 29 count indictment for income tax evasion. According to information presented during the plea hearing, Brooks operated a successful employee leasing business entitled Temp Owned Temporary Services (TOTS) from 2002 until 2008. Brooks also acquired a commercial janitorial service in 2003 entitled Full Line Maintenance. Brooks controlled all financial aspects for both of these companies. During this time, Brooks was also the minister at Antioch Missionary Baptist Church earning approximately $1,000 each month.
“By stealing more than $3.6 million from the United States Government through a pattern of deliberate tax evasion, Brooks traded the respect of his parishioners and employees, and ultimately his freedom, for the allure of easy money,” said U.S. Attorney Stanton. “Today’s verdict demonstrates he made the wrong choice, and should serve as an example for those who occupy positions of trust that are tempted to act in the same manner.”
Evidence from the investigation showed that no Form 941, Employer’s Quarterly Federal Tax Return was filed for the second quarter of 2006 for TOTS. During this quarter, approximately 300 employees were paid wages totaling $786,481.08. The taxes due to the United States for this quarter were approximately $178,019.61. In addition, several of the other quarterly employer returns filed by Brooks were false. Brooks withheld federal income taxes and social security and Medicare benefits from employees’ paychecks but failed to pay all of these amounts over to the government, instead keeping the funds for himself.
“Most taxpayers file accurate tax returns. In fairness to the majority who are honest, the IRS must and will actively pursue those who intentionally violated the tax laws by attempting to evade their true tax liabilities,” stated Christopher Henry, Special Agent in Charge of the IRS-Criminal Investigation Nashville Field Office.
Brooks also admitted that he did not file a 2006 Form 1040, Individual Income Tax Return, even though he had income from TOTS, Full Line Maintenance, and Antioch Missionary Baptist Church. The tax due was calculated to be $197,987.00.
Evidence presented during the plea hearing revealed that during 2006, Brooks incurred gambling losses from 16 different casinos in five different states totaling $644,069.00. Brooks also paid off loans of $814,133.56 and made several large purchases of jewelry, furniture, and apartment rental.Brooks also leased and/or purchases several luxury vehicles in the name of Antioch Missionary Baptist Church, including a Mercedes Benz, a BMW, and a Cadillac Escalade. The furniture and vehicle purchase were without church members knowledge or authorization.
In addition to the term of imprisonment, Breen ordered Brooks to serve three years of supervised release, and ordered to pay restitution of $3,660,905 to the Internal Revenue Service (IRS). There is no parole in the federal prison system.
This investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorneys Lawrence J. Laurenzi and Victor Ivy represented the government.Buffalo Man Pleads Guilty to Possession of Child PornographyRead the Press Release
BUFFALO, N.Y.– U.S. Attorney William J. Hochul Jr. announced today that Kevin Baron, 42, of Buffalo, N.Y., pleaded guilty before U.S. District Court Judge Richard J. Arcara, to possession of child pornography. The charge carries a maximum penalty of 10 years in prison and a fine of $250,000.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that on March 9, 2012, a search warrant was executed at the defendant’s residence. A forensic analysis of Baron’s computer and DVD disks revealed in excess of 600 images of child pornography. The analysis also revealed that a privacy and cleaning software had been installed and was run on February 18, 2012 and February 28, 2012. Some of the images contained depictions of violence.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge, Christopher M. Piehota, along with Officers of the Cheektowaga Police Department, under the direction of Police Chief David Zack. Additional assistance was provided by the Western New York Regional Computer Forensics Laboratory, which conducted the forensic analysis of the computer.
Sentencing is scheduled for May 24, 2013 at 12:30 p.m. before Judge Arcara.
Broward County Tax Return Preparer Pleads Guilty to 76-Count Superseding IndictmentRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced that Vladimyr Jean Baptiste, 41, of Coral Springs, pled guilty today to a 76-count superseding indictment before U.S. District Judge Robin S. Rosenbaum. Sentencing is scheduled for April 12, 2013 at 9:00 a.m.
The superseding indictment charges Baptiste with 73 counts of aiding in the preparation and presentation to the Internal Revenue Service of false U.S. Individual Income Tax Returns, Forms 1040 and 1040A, for calendar years 2007 through 2010, in violation of Title 26, U.S.C., Section 7206(2); and 3 counts of failing to file personal income tax returns for calendar years 2008 through 2010, in violation of Title 26, U.S.C., Section 7203. At sentencing, Baptiste faces up to a maximum of 3 years in prison per count of preparing false tax returns, and a maximum of 1 year in prison per count of failing to file personal income tax returns.
According to court documents, Baptiste operated Tax Plus in Pompano Beach, Florida and filed numerous false income tax returns for clients. These false returns claimed fraudulent statuses, wages, deductions, credits and expenses. Specifically, Baptiste admitted to inflating earned income credits; encouraging clients to file separately when they were married and both falsely file income taxes as head of household, thereby obtaining additional tax credits; and giving various clients a fictitious $3,650 personal tax exemption for returns and allowances to lower their taxes. Finally, Baptiste also admitted that he has not filed his personal tax returns for the past five years.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Michael Walleisa.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Armed Career Criminal to Serve Twenty-Two and a Half Years in Prison for Unlawful Possession of a Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Warren Rivera, 34, of Albuquerque, N.M., was sentenced this morning to 270 months in prison followed by three years of supervised release for being a felon in possession of a firearm and ammunition. Rivera’s sentence was announced by U.S. Attorney Kenneth J. Gonzales and Thomas G. Atteberry, Special Agent in Charge of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Rivera was arrested on April 26, 2011, on a criminal complaint charging him with being a felon in possession of a firearm and ammunition. He has been in federal custody since that time. On May 11, 2011, Rivera was indicted on that same charge. On Oct. 18, 2011, a federal jury convicted Rivera on the sole count of the indictment.
Rivera was sentenced under the Armed Career Criminal Act. According to the indictment, Rivera was prohibited from possessing firearms and ammunition in April 2011, because he previously had been convicted of the following three felony offenses in the Second Judicial District Court for the State of New Mexico (Bernalillo County): (1) aggravated assault against a household member, (2) aggravated assault against a household member with a deadly weapon, and (3) possession of a controlled substance. Rivera’s entire criminal history is more extensive. Court filings reflect that Rivera’s criminal activity began in 1998, when he was 19, and includes five prior felony convictions and 23 misdemeanor convictions. Violence, including domestic violence and violence against law enforcement officers, was a factor in seven of Rivera’s misdemeanor convictions, three of his prior felony convictions, and the offense for which he was sentenced today.
According to the evidence at Rivera’s trial, on April 4, 2011, officers of the Albuquerque Police Department responded to a domestic violence call reporting that a man was threatening another man with a handgun. When the officers arrived at the scene and took Rivera and his girlfriend into custody, they found that the girlfriend was in possession of a handgun. The girlfriend’s father testified that he and his wife went to their daughter’s apartment after receiving a call from their daughter, who tearfully told him that Rivera was holding her captive. In the vicinity of the apartment, the girlfriend’s parents they found Rivera and their daughter out in the street. After Rivera grabbed his girlfriend’s wallet, the father approached Rivera and demanded the return of the wallet. Rivera responded by pointing a handgun at the father’s head and threatening to shoot him.
“We will not tolerate armed violent felons terrorizing our community,” stated ATF Special Agent in Charge Thomas G. Atteberry. “The success of the investigation is attributed to the outstanding cooperation between the investigating agencies. I would like to commend the leadership of U.S. Attorney Kenneth J. Gonzales and his line attorney for their successful prosecution of this case.”
This case was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department, with assistance from the District Attorney’s Office for the Second Judicial District of the State of New Mexico. It was prosecuted by Assistant U.S. Attorney Norman Cairns.
Monday 11 February 2013
US Files Lawsuit in Louisiana Against Oil and Gas Company Alleging Unlawful Discharge of Oil and Chemical Dispersants in the Gulf of MexicoRead the Press Release
Today the United States filed a civil action against ATP Oil & Gas Corporation and ATP Infrastructure Partners, LP (ATP-IP) for civil penalties and injunctive relief under the Clean Water Act and the Outer Continental Shelf Lands Act. The complaint was filed on behalf of the U.S. Department of the Interior’s Bureau of Safety and Environmental Enforcement (BSEE) and the U.S. Environmental Protection Agency (EPA). The complaint addresses the defendants’ alleged unlawful discharges of oil and unpermitted chemical dispersants from the defendants’ floating oil and gas production platform, the ATP Innovator, into the Gulf of Mexico.
The ATP Innovator is a production facility operating at Lease Block 711 of Mississippi Canyon in the Gulf of Mexico, approximately 45 nautical miles offshore of southeastern Louisiana.
The violations were discovered during a BSEE inspection of the facility in March 2012. Following further investigation by BSEE, the violations were referred to the Department of Justice by BSEE and EPA. The case, United States v. ATP Oil & Gas Corporation et al., was filed in the District Court for the Eastern District of Louisiana.
As alleged in the complaint, ATP failed to properly operate and maintain its wastewater treatment system on the ATP Innovator. As a result, excess oil was discharged into the ocean, and an unauthorized chemical dispersant was added to the oily wastewater discharge to mask the presence of oil on the ocean’s surface. The dispersant was added to the outfall pipe by way of a concealed metal tube that connected a tank of dispersant to the outfall pipe. The connection of the metal tubing to the outfall pipe was located downstream of the sample collection point, making the addition of unauthorized dispersant undetectable in samples that are required to be collected to show compliance with ATP’s Clean Water Act discharge permit.
According to the complaint, the dispersant had been used from at least October 2010 to March 2012. In addition to civil penalties under the Clean Water Act, the complaint also seeks injunctive relief for violations of the Clean Water Act and the Outer Continental Shelf Lands Act.
Related Materials:
ATP Complaint
Two Men Plead Guilty to Roles in 2011 MurderRead the Press Release
St. Louis, MO - Scott Alan Compton, Washington, MO, and Lodgy Michael Jackson, Houston, TX, pled guilty on February 6 and February 8, 2013, respectively, for their actions that resulted in the April 22, 2011, death of Jamie Benson of Houston, TX. Compton and Jackson both pled guilty to one count of conspiracy to possess with the intent to distribute over 500 grams of cocaine. Jackson additionally pled guilty to a second count of conspiracy to possess a firearm in furtherance of a drug trafficking crime and a third count of discharging a firearm in furtherance of a drug trafficking crime in which death resulted. They appeared before United States District Court Judge Audrey G. Fleissig
According to court documents, in early April 2011, Compton and Jackson -- along with others -- joined in a conspiracy that included robbing and murdering victim Benson within the City of St. Louis after luring Mr. Benson from Houston to St. Louis. Compton and Jackson were actively involved in luring Benson to St. Louis and setting the stage for Benson's murder by Jackson. In the early morning hours of April 22, 2011, Jackson shot and murdered Benson inside a vehicle parked in a St. Louis alley. Jackson and others abandoned Benson's body in the alley where it was later discovered by the St. Louis Metropolitan Police Department. The conspirators undertook significant efforts to cover-up the conspiracy and destroy evidence of the crime, but were ultimately unsuccessful.
Sentencing has been set for May 2013. Compton faces up to a maximum of 40 years imprisonment for his crime. Jackson faces a term of imprisonment of up to life for his crimes. In determining the actual sentences, a judge is required to consider the United States Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the St. Louis Metropolitan Police Department; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the United States Marshals Service; the Franklin County Sheriff's Department; and the St. Charles County Police Department.Two Jackson County Men Charged in Methamphetamine ConspiracyRead the Press Release
Two Jackson County, IL, residents were indicted on February 5, 2013, in an indictment, charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
On February 7, 2013, Brian W. Davis, 30, of Desoto, was arraigned in United States District Court in Benton on an indictment charging conspiracy to manufacture methamphetamine. The indictment alleged that the offense occurred between June, 2012, and November 1, 2012, in Jackson and Union Counties. Davis was ordered held without bond pending a February 12, 2013, detention hearing. Anthony R. Renth, 45, of Murphysboro, is scheduled to make his initial appearance on the indictment on February 25, 2013.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, Davis and Renth face up to 20 years’ imprisonment, a $1,000,000 fine, and 3 years of supervised release.
The ongoing investigation is being conducted by the Murphysboro Police Department and Jackson County Sheriff’s Office, with the assistance of the Union County Sheriff’s Office.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Two District Men Plead Guilty to Robbery in Daytime Attack in Southeast Washington-Defendants Arrested Soon After Crime, with Victim’s Cash and Property-Read the Press Release
WASHINGTON - Venlonte Bethea, Jr., 19, also known as James Williams, and Anthony Hardy, 24, pled guilty today to robbery charges stemming from a mid-afternoon attack on a man last summer in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Bethea and Hardy, both of Washington, D.C., entered the guilty pleas in the Superior Court of the District of Columbia. The Honorable Lynn Leibovitz scheduled sentencing for April 12, 2013. The charge carries up to 15 years in prison. Judge Leibovitz ordered that both defendants be held without bond pending their sentencing.
According to the government’s evidence, on July 17, 2012, at about 1:40 p.m., the victim was walking near the intersection of Pennsylvania Avenue and G Street SE, adjacent to the Potomac Avenue Metro station and bus stop. Bethea and Hardy approached him, asking for change. Bethea then circled behind the victim and put him in a chokehold, while Hardy went through the victim's pockets and took all of his money, phone, and various other identification cards. In all, both men took $576 in cash, including three $2 bills, a debit card, an insurance card, and an identification card. Then they ran into the Potomac Avenue Metro station.
The victim chased both defendants to the L'Enfant Plaza Metro Station, and used another Metro passenger’s phone to call the police. In his call to the police, the victim provided detailed descriptions of his attackers. The Metro Transit Police stopped both defendants inside the Gallery Place-Chinatown Metro station. They matched the descriptions provided by the victim.
The victim subsequently identified both defendants as having robbed him. In a search following the arrests, police found $290 on Bethea; Hardy had the rest of the money, including the $2 bills, as well as the victim's debit and identification cards.
In announcing today’s plea, U.S. Attorney Machen commended the work of the Metro Transit Police. He also acknowledged the efforts of Assistant U.S. Attorney John C. Truong, who investigated and prosecuted the case.
13-049Two Defendants Indicted in Alleged Sham Marriage Conspiracy to Illegally Enable Legal U.S. ResidenceRead the Press Release
CHICAGO – A suburban immigration consultant is among two defendants who were arrested after being indicted for allegedly conspiring to arrange fraudulent marriages to evade immigration laws and enable foreign nationals to illegally become U.S. legal permanent residents. The pair allegedly arranged at least four fraudulent marriages and attempted to arrange a fifth between foreign national and undercover agent who was posing as a U.S. citizen.
TERESITA ZARRABIAN, 60, of Des Plaines, a naturalized U.S. citizen who owns Zarrabian and Associates, an immigration consulting business in Arlington Heights, and MICHAEL SMITH, 41, of Bellwood, a U.S. citizen, were each charged with conspiracy to commit marriage fraud, marriage fraud and visa fraud, and Zarrabian was also charged with obstruction of justice in a seven-count indictment that was returned on Jan. 31 and unsealed when they were arrested last Thursday.
Zarrabian and Smith pleaded not guilty when they appeared Thursday and Friday, respectively, in U.S. District Court and were released on their own recognizance.
The indictment and arrests were announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Gary J. Hartwig, Special Agent-in-Charge of Homeland Security Investigations in Chicago. The charges resulted from an investigation conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and its partner agencies on the Chicago Document and Benefit Fraud Task Force, including U.S. Citizenship and Immigration Service's Fraud Detection and National Security Unit.
“Marriage fraud is a serious crime that exploits our nation’s immigration system and poses a vulnerability to our security,” Mr. Hartwig said. “HSI will continue its efforts to identify and arrest individuals whose actions allegedly show a complete disregard for U.S. immigration laws and undermine the legitimate immigration process.”
According to the indictment, between 2005 and 2012, Zarrabian assisted foreign-born clients complete the necessary forms to become legal permanent residents on the basis of marriage to a U.S. citizen. Clients paid Zarrabian between $8,000 and $15,000 in exchange for arranging fraudulent marriages to U.S. citizens recruited by Zarrabian and Smith, the charges allege. Foreign nationals who marry U.S. citizens legitimately may become legal permanent residents of the United States but not if the marriage was a sham solely to evade immigration laws.
Zarrabian allegedly paid Smith a portion of the money she received from foreign national clients for Smith’s recruitment of U.S. citizen spouses. In turn, Zarrabian allegedly promised to pay approximately $5,000 to the U.S. citizen spouses for their participation in a sham marriage. Both defendants arranged to have individuals travel to Las Vegas for a fraudulent wedding and also took photos of the “couple” and other steps to create the false impression that the sham marriages were legitimate. Zarrabian also met with the couples and told them what actions they needed to take to make their marriages appear legitimate during marriage interviews with officials, according to the indictment.
The obstruction count alleges that Zarrabian attempted to persuade a U.S. citizen involved in a fraudulent marriage from communicating information to law enforcement.
The government is being represented by Assistant U.S. Attorney Tony Iweagwu.
Conspiracy to commit marriage fraud and each count of marriage fraud carry a maximum penalty of five years in prison and a $250,000 fine. Visa fraud carries a maximum penalty of 10 years in prison and a $250,000 fine, and the obstruction count against Zarrabian carries a maximum of 20 years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Two Defendants Admit Roles in $65 Million Stolen Identity Income Tax Refund Fraud SchemeRead the Press Release
NEWARK, N.J. – Two defendants today admitted their roles in one of the nation’s largest and longest running stolen identity refund fraud schemes ever identified, U.S. Attorney Paul J. Fishman.
The scheme caused more than 8,000 fraudulent U.S. income tax returns to be filed, which sought more than $65 million in tax refunds, and which resulted in the losses to the United States of more than $12 million.
Bennie Haynes, 53, of Dayton, N.J., a former U.S. Postal Service carrier, and Manuel Rodriguez, 50, of New Brunswick, N.J., both pleaded guilty before U.S. District Judge Claire C. Cecchi. Haynes pleaded guilty to an Information charging him with conspiracy to defraud the United States, theft of government property, and theft of mail by a postal employee. Rodriguez pleaded guilty to an Information charging him with conspiracy to defraud the United States, theft of government property and aggravated identity theft.The conspiracy counts are punishable by a maximum potential penalty of five years in prison and up to a $250,000 fine. The substantive counts of theft of government property carry a maximum potential penalty of 10 years in prison and up to a $250,000 fine. The theft of mail by a postal employee carries a maximum potential penalty of five years in prison and up to a $250,000 fine. The aggravated identity theft count is punishable by a statutory mandatory minimum sentence of two years in prison, which must run consecutively to any other sentence.
According to documents filed in this case and statements made in court:
Stolen Identity Refund Fraud
Stolen Identity Refund Fraud (“SIRF”) is a common type of fraud committed against the United States government that results in more than $2 billion in losses annually to the United States Treasury. SIRF schemes generally share a number of hallmarks:
· SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico.
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· SIRF perpetrators complete Individual Income Tax Return Form 1040s (“Form 1040”) using the fraudulently-obtained information, and falsifying wages earned, taxes withheld and other data. Perpetrators use data to make it appear that the “taxpayers” listed on the fraudulent 1040 forms are entitled to tax refunds – when in fact, the various tax withholdings indicated on the fraudulent 1040s have not been paid by the listed “taxpayers,” and no refunds are due.· Perpetrators direct the U.S.Treasury Department to issue the refunds through checks (“Tax Refund Treasury Checks”) generated by the fraudulent 1049 forms to locations they control or can access, in various ways.
· With Tax Refund Treasury Checks now in hand, SIRF perpetrators generate cash proceeds. Certain SIRF perpetrators sell Tax Refund Treasury Checks at a discount to face value. In turn, the buyers then cash the Tax Refund Treasury Checks, either themselves or using straw account holders, by cashing checks at banks or check cashing businesses, or by depositing checks into bank accounts. When cashing or depositing Tax Refund Treasury Checks, SIRF perpetrators often present false or fraudulent identification documents in the names of the “taxpayers” to whom the checks are payable.
The Investigation
Federal law enforcement agencies created a multi-agency task force in New Jersey composed of investigators from the IRS and the U.S. Postal Inspection Service, along with the U.S. Secret Service, and with assistance from the Drug Enforcement Administration (the “New Jersey Task Force”).
An investigation led by the New Jersey Task Force, with assistance from U.S. Immigration and Customs Enforcement, Homeland Security Investigations, revealed that from at least 2007, dozens of individuals in the New Jersey and New York area have been engaged in a large-scale, long running SIRF scheme that caused more than 8,000 fraudulent 1040 forms to be filed, seeking more than $65 million in tax refunds, with more than $12 million in losses to the U.S. Treasury.
Defendant Manuel Rodriguez and others obtained personal identifiers, such as dates of birth and Social Security numbers, belonging to Puerto Rican citizens. Rodriguez and others used those identifiers to create fraudulent 1040 forms, which falsely reported wages purportedly earned by the “taxpayers” and taxes purportedly withheld, to create the appearance that the “taxpayers” were entitled to tax refunds.
The fraudulent 1040 forms were created and filed electronically. By tracing the specific IP addresses that submitted the electronically-filed 1040s, law enforcement officers learned that just a handful of IP addresses created many of the fraudulent 1040 forms, which, in turn, led to the issuance of Tax Refund Treasury Checks that the conspirators obtained, sold, cashed, and spent.
Rodriguez and others then gained control of the refund checks, in various ways, which followed the pattern of a classic SIRF scheme. Sometimes, conspirators obtained Tax Refund Treasury Checks by bribing mail carriers, including defendant Benny Haynes, to intercept checks and deliver them to other conspirators. In exchange for cash payments, Haynes gave Tax Refund Treasury Checks to conspirators. In turn, these conspirators then sold these checks to yet other conspirators. Tax Refund Treasury Checks mailed to addresses along Haynes’ mail route in Somerset, N.J., were deposited into accounts controlled by Rodriguez and other conspirators.
Conspirators also purchased “mail routes,” that is, lists of addresses covered by a single mail carrier. Conspirators applied for Tax Refund Treasury Checks, inserted addresses along the mail route as the purported home addresses of the “taxpayers,” and obtained the Tax Refund Treasury Checks sent to the addresses. In other instances, the conspirators applied for checks using addresses otherwise controlled by, or accessible by, certain conspirators, and collected the checks after they were delivered to those addresses. During the course of the scheme, hundreds of Tax Refund Treasury Checks were mailed to just a few different addresses in a few different towns, including Nutley, Somerset and Newark, N.J., and Shirley, N.Y.
Certain conspirators then sold Tax Refund Treasury Checks to Rodriguez and others. After buying the Tax Refund Treasury Checks, Rodriguez and others deposited and cashed the checks. The conspirators used third parties (the “Straw Account Holders”), to open bank accounts at various banks in New Jersey and elsewhere. Once the Tax Refund Treasury Checks were deposited into the Straw Account Holders’ accounts or accounts controlled by conspirators, Rodriguez and others withdrew the funds.
Rodriguez and others also obtained proceeds from Tax Refund Treasury Checks by causing checks to be cashed at check cashing institutions, and then causing the proceeds to be deposited into bank accounts controlled by conspirators.
During the course of the investigation, members of the New Jersey Task Force identified certain “hot spots” of activity related to the Scheme – that is, Conspirators were directing millions of dollars of Tax Refund Treasury Checks to just a few towns and cities in and around New Jersey. New Jersey Task Force members then interacted with U.S. Postal Service employees in these hot spots, and identified the characteristics of Tax Refund Treasury Checks connected to the scheme. As a result of these efforts, more than $22 million in fraudulently applied for Tax Refund Treasury Checks that had been issued by the U.S. Treasury were not delivered to the conspirators or others, but were interdicted by law enforcement officers.
Sentencing for both defendants is scheduled for June 5, 2013.
U.S. Attorney Fishman praised special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen; and inspectors of the U.S. Postal Inspection Service, under the direction of Phillip R. Bartlett, with the investigation leading to today’s guilty pleas. He also thanked the special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge Robert G. Koval; and HSI-ICE, under the direction of Special Agent in Charge Andrew M. McLees, for their roles.
The government is represented by Assistant U.S. Attorneys Mala Ahuja Harker, Lakshmi Srinavasan Herman, Zach Intrater, and Danielle Walsman of the U.S. Attorney’s Office Criminal Division in Newark.13-073
Defense Counsel:
Manuel Rodriguez: Mark A. Berman, River Edge, NJ
Benny Haynes: David Holman Esq., Assistant Federal Public Defender, NewarkHaynes Information
Rodriguez InformationTse-Yah-Toh, N.M., Man Sentenced to Eighteen Years in Prison for Federal Child Sex Abuse ConvictionRead the Press Release
ALBUQUERQUE –Kenneth Mike Etsitty, 58, an enrolled member of the Navajo Nation who resides in Tse-Yah-Toh, N.M., was sentenced this morning to 18 years in prison followed by ten years of supervised release for his child sex abuse conviction. Etsitty will be required to register as a sex offender when he completes his prison sentence.
Etsitty was charged with aggravated sexual abuse of a child under the age of 12 in a criminal complaint filed on May 14, 2012. He was arrested the following day, and has been in federal custody since that time. On Oct. 17, 2012, Etsitty pled guilty to an information charging him with three counts of aggravated sexual abuse of a child under the age of 12.
According to court records, law enforcement authorities initiated a criminal investigation into Etsitty in Feb. 21, 2012, after a nine-year-old Navajo child reported being sexually assaulted by Etsitty on more than ten occasions. During a subsequent voluntary interview, Etsitty admitted sexually assaulting the child victim on approximately ten occasions.
In entering his guilty plea, Etsitty admitted that he forced the child victim to engage in sexual acts on multiple occasions from Jan. 2007, when the child was four-years-old, through Nov. 2011, when child was nine-years old. Etsitty admitted that each of the sexual attacks occurred in the same way, by touching the child victim’s genitals. The offenses occurred in Indian Country.
The case was investigated by the Gallup office of the FBI and the Crownpoint Division of the Navajo Nation Department of Public Safety, and was prosecuted by Assistant U.S. Attorney Mark T. Baker.
Three Individuals Enter Pleas of Guilty in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistELKINS, WEST VIRGINIA - Three individuals entered pleas of guilty on February
7, 2013, in United States District Court in Elkins before Magistrate Judge John S. Kull.United States Attorney William J. Ihlenfeld, II, announced that:
PATRICK S. CRITES, age 46, of Moorefield, West Virginia, entered a plea of guilty to one count of “Transmitting Threatening Communications in Interstate Commerce” on November 28, 2012. CRITES, who is on bond pending sentencing, faces up to five years imprisonment and a $250,000 fine. This case was prosecuted by Criminal Chief Shawn A. Morgan and was investigated by the United States Secret Service, as the threat was made to the White House.
KELLEY LEIGH COHENOUR, age 35, and WILLIAM JOSEPH RUSSELL, age 38, of Cass, West Virginia, both entered a plea of guilty to “Possession of Material Used in the Manufacture of Methamphetamine” on April 13, 2012. COHENOUR and RUSSELL, who are on bond pending sentencing, face up to 10 years imprisonment and a $250,000 fine. This case was prosecuted by Assistant United States Attorney Stephen D. Warner and investigated by the West Virginia State Police and the Pocahontas County Sheriff’s Office.
Successful Conclusion of Operation Rolling ThunderRead the Press Release
United States Attorney Michael W. Cotter of the District of Montana, and United States Attorney Brendan V. Johnson of the District of South Dakota announced the results of Operation Rolling Thunder, a two-year covert investigation focusing on unlawful trafficking in federally-protected migratory birds, primarily bald and golden eagles. The operation was conducted by agents of the U.S. Fish and Wildlife Service from March 2008 through February 2011 in Montana and South Dakota.
The investigation documented 43 transactions of protected migratory birds, primarily bald and golden eagles, in violation of the Bald and Golden Eagle Protection Act, the Migratory Bird Treaty Act and the Lacey Act. The unlawful transactions include the purchase of multiple whole carcass bald and golden eagles in interstate commerce using the United States Postal Service and wire transfers of funds to further the transactions. In total, the operation was able to purchase feathers, other bird parts (wings, claws), and complete migratory birds, which involved a minimum of 80 eagles and 30 hawks.
In response to the successful prosecutions in Operation Rolling Thunder, U.S. Attorney Michael W. Cotter said, “I have to commend the investigators with the U.S. Fish Wildlife Service and Assistant U.S. Attorney Mark Smith for his excellent work in this case. Investigations and prosecutions, like Operation Rolling Thunder, of those that kill our protected species for their own gain are vital to ensuring the sustainability of the majestic raptors of our country.”
U.S. Attorney Brendan V. Johnson added, “I want to recognize and thank the U.S. Fish and Wildlife Service investigators for their diligent efforts in this Operation, and Assistant U. S. Attorneys Eric Kelderman and Tim Maher for their vigorous prosecution of those that have violated the Bald and Golden Eagle Protection Act. The Department of Justice respects the appropriate use of bird parts for cultural and religious purposes, but the success of Operation Rolling Thunder demonstrates that once that line is crossed, we will strongly enforce federal wildlife laws that preserve natural resources.”
“This investigation documented the unlawful killing and commercialization of eagles and hawks, an unlawful practice that in certain areas of our country is a significant threat to species that are a vital part of our natural heritage,” said Ed Grace, Deputy Chief for the U.S. Fish and Wildlife Service. “We hope the penalties in these cases serve as a deterrent to those engaged in this practice, and urge the public to help us put an end to it.”
On October 12, 2012, the Department of Justice announced a policy addressing the ability of members of federally recognized Indian tribes to possess or use eagle feathers, an issue of great cultural significance to many tribes and their members. The Attorney General's memorandum is the first formal policy statement adopted by the Justice Department on this issue. It clarifies and expands on longstanding Department practice, consistent with the Department of the Interior's 35-year old Morton Policy, of not prosecuting tribal members for possessing or using eagle feathers and other protected bird parts.
Federal wildlife laws such as the Bald and Golden Eagle Protection Act generally criminalize the killing of eagles and other migratory birds and the possession or commercialization of the feathers and other parts of such birds. These important laws are enforced by the Department of Justice and the Department of the Interior and help ensure that eagle and other bird populations remain healthy and sustainable.
Many Indian tribes and tribal members have historically used, and today continue to use federally protected birds, bird feathers or other bird parts for their tribal cultural and religious expression. Federal wildlife laws recognize the importance of accommodating tribal spiritual needs by allowing exceptions for the religious purposes of Indian tribes. Eagle feathers are made available to tribal members every year from the Fish and Wildlife Service's National Eagle Repository.{www.fws.gov/le/national-eagle-repository.html}
For more information on the Department’s Eagle Feathers Policy, visit www.justice.gov/tribal/feathers-fs.htm
Five defendants were indicted in South Dakota, and seven were indicted in Montana. Following is a summary of the cases:
SOUTH DAKOTA DEFENDANTS:
1. Stanley LITTLEBOY. On January 5, 2012, Stanley LITTLEBOY appeared before United States District Court Judge Jeffrey L. Viken and was sentenced on two counts of violating the Bald and Golden Eagle Protection Act. LITTLEBOY was sentenced to the following: • Five (5) months in the custody of the Bureau of Prisons • Five (5) months in Community Confinement • One (1) year of Supervised Release • $125.00 payment of Special Assessment Fee
2. Shane REDHAWK. On January 18, 2012, Shane REDHAWK appeared before United States District Court Judge Roberto A. Lange and was sentenced on two counts of violating the Bald and Golden Eagle Protection Act. REDHAWK was sentenced to the following: • One (1) month in the custody of the Bureau of Prisons • Five (5) months in Home Confinement • One (1) year of Supervised Release • 100 hours of Community Service • $125.00 payment of Special Assessment Fee
3. Noella REDHAWK. On January 18, 2012, Noella REDHAWK appeared before United States District Court Judge Roberto A. Lange and was sentenced on one count of violating the Bald and Golden Eagle Protection Act. REDHAWK was sentenced to the following: • Six (6) months in Home Confinement • One (1) year of Probation • 50 hours of Community Service • $25.00 payment of Special Assessment Fee
4. Tilden REDDEST. On February 24, 2012, Tilden REDDEST appeared before U.S. District Court Judge Jeffrey L. Viken and was sentenced on two counts of violating the Bald and Golden Eagle Protection Act. REDDEST was sentenced to the following: • Fifty-two (52) consecutive weekends in custody. To be served at the Pennington County Jail, Rapid City, South Dakota • Five (5) years of Probation • 400 hours of Community Service • $125 payment of Special Assessment Fee
MONTANA/SOUTH DAKOTA JOINT DEFENDANT:
5. Ernie L. STEWART. On January 11, 2012, Ernie L. STEWART appeared before U.S. District Judge Jeffrey L. Viken and pled guilty to one (1) count of violating the Bald and Golden Eagle Protection Act. Later, Stewart’s case was transferred from the District of South Dakota to the District of Montana for sentencing, because Stewart had related charges pending in that District. On May 9, 2012, Ernie L. STEWART appeared before U.S. District Court Judge Jack D. Shanstrom and was sentenced on three (3) counts of violating the Bald and Golden Eagle Protection Act. STEWART was sentenced to the following for charges in Montana and South Dakota: • Twelve (12) months and one (1) day in the custody of the Bureau of Prisons • One (1) year of Supervised Release • Revocation of hunting and fishing privileges • $225 payment of Special Assessment Fee
MONTANA DEFENDANTS:
6. Melody GOODSTRIKER. On January 7, 2012, Melody GOODSTRIKER, per a plea agreement with the U.S. Attorney’s Office, forfeited $500.00 in collateral to the Central Violations Bureau for a violation of the Migratory Bird Treaty Act.
7. Harvey HUGS. On January 27, 2012, Harvey HUGS appeared before U.S. Magistrate Judge Carolyn S. Ostby and was sentenced on one count of violating the Bald and Golden Eagle Protection Act. HUGS was sentenced to the following: • Six (6) months in the custody of the Bureau of Prisons • One (1) year of Supervised Release • $25.00 payment of Special Assessment Fee
8. Marc LITTLE LIGHT. On March 8, 2012, Marc LITTLE LIGHT appeared before U.S. Magistrate Judge Carolyn S. Ostby and was sentenced on one count of violating the Migratory Bird Treaty Act. LITTLE LIGHT was sentenced to the following: • One (1) year of Probation • $2,000.00 payment of Fine • $10.00 payment of Special Assessment Fee
9. William E. HUGS Jr. On May 2, 2012, William E. HUGS Jr. appeared before Chief U.S. District Court Judge Richard F. Cebull and was sentenced on five (5) counts of violating the Bald and Golden Eagle Protection Act and the Migratory Bird Treaty Act. HUGS Jr., was sentenced to the following: • Time served in custody (Jan 9, 2012 through May 2, 2012) • Three (3) years of Supervised Release • Payment of $500.00 Special Assessment Fee
10. Gilbert G. WALKS Jr. On May 4, 2012, Gilbert G. WALKS Jr. appeared before Chief U.S. District Court Judge Richard F. Cebull and was sentenced on four (4) counts of violating the Bald and Golden Eagle Protection Act and the Migratory Bird Treaty Act. WALKS Jr., was sentenced to the following: • Twenty-four (24) months in the custody of the Bureau of Prisons • One (1) year of Supervised Release • 100 hours of Community Service • Payment of $400.00 Special Assessment Fee
11. William E. HUGS Sr. On June 13, 2012, William E. HUGS Sr. appeared before Chief U.S. District Court Judge Richard F. Cebull and was sentenced on one (1) count of violating the Bald and Golden Eagle Protection Act. HUGS Sr., was sentenced to the following: • Eighteen (18) months in the custody of the Bureau of Prisons • Three (3) years of Supervised Release • Payment of $500.00 Special Assessment Fee
Law enforcement is essential to virtually every aspect of wildlife conservation. The U.S. Fish and Wildlife Service Office of Law Enforcement contributes to Service efforts to manage ecosystems, save endangered species, conserve migratory birds, preserve wildlife habitat, restore fisheries, combat invasive species, and promote international wildlife conservation.
U.S. Fish and Wildlife Service law enforcement today focuses on potentially devastating threats to wildlife resources -- illegal trade, unlawful commercial exploitation, habitat destruction, and environmental contaminants. The Office of Law Enforcement investigates wildlife crimes, regulates wildlife trade, helps Americans understand and obey wildlife protections laws, and works in partnership with international, state, and tribal counterparts to conserve wildlife resources.
When fully staffed, the Office of Law Enforcement includes 261 special agents and some 140 wildlife inspectors.
Portland Man Sentenced to 18 Years in Prison for Producing Images of Child Sexual AbuseRead the Press Release
PORTLAND, Ore. — Rodger Strampher, 30, of Portland, Oregon, was sentenced to 18 years in prison today by United States District Judge Ancer L. Haggerty, for producing images of a child being sexually abused. On June 25, 2012, Strampher pleaded guilty to one count of producing child pornography. Upon release from custody, Strampher will serve a 20-year period of supervised release. During his supervised release, he must abide by a number of conditions, which include a sex offender assessment and treatment program, no contact with minors without approval, restricted access to computers and the Internet, and registration as a sex offender.
“Protecting our children remains one of the highest priorities of my office,” said U.S. Attorney Amanda Marshall. “We will use every resource available to hold those accountable who prey on the most innocent and vulnerable members of our communities.”
The case arose in connection with the investigation of Michael Marceau and Lisa Ford, a local couple who are currently serving 49-year and 46-year federal prison sentences for producing child pornography. In the course of that investigation, Department of Homeland Security agents found on Marceau’s computer images of a young child being sexually abused. Data embedded in the images indicated the images were taken with an iPhone on March 2, 2009, and the data also revealed the location of the iPhone at the time the images were taken. Agents traced the images to Strampher, and learned that he had produced the images and then traded the images with Marceau via email.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Department of Homeland Security and prosecuted by Assistant U.S. Attorney Stacie F. Beckerman.
Pastor from Ponce Arrested Federally for Transportation of Minors with Intent to Engage in Criminal Sexual ConductRead the Press Release
SAN JUAN, P.R. –Nelson Santiago-Colón, a Pastor for the Iglesia Cristiana Peniel, located in Santa Isabel, Puerto Rico, was arrested today by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) special agents and the Puerto Rico Police Department on charges related to the transportation of minors with the intent to engage in criminal sexual conduct, announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez.
On or about January 18, 2013, after an exhaustive investigation by local authorities, Nelson Santiago-Colón, was arrested by the Police of Puerto Rico on charges of sexual aggression of minors, lascivious acts and child abuse, and was granted bail in the amount of $110,000 by Puerto Rico Superior Court Judge Sheila Díaz. Shortly after the defendant posted bail, Puerto Rico Department of Justice officials contacted Federal authorities to charge Santiago-Colón under the laws of the United States. Immediately, special agents from HSI, together with federal prosecutors, began interviewing the victims from the local case.
As a result of such investigation by Federal authorities, today, agents from HSI, the Police of Puerto Rico and the Puerto Rico Department of Justice, arrested Nelson Santiago-Colón, 47, on Federal charges of transporting three minor males to his home where he sexually assaulted and committed lewd and lascivious act on them.According to the three-count complaint, Santiago-Colón is charged with transportation of minors with the intent to engage in criminal sexual activity. In Counts I and II, Santiago-Colon is charged with having transported a 14-year-old boy and a 12-year-old boy from the Iglesia Cristiana Peniel in Santa Isabel to his home in Ponce, Puerto Rico for the purpose of committing sexual assault and lewd acts with the minors. Count III charges Santiago-Colón with transporting a 14-year-old minor from his home to the home of the defendant with the intent to perform lewd acts on the minor.
Assistant United States Attorney Marshal D. Morgan is in charge of the prosecution. Moreover, in recognition of the exhaustive investigation conducted by the local authorities in this case, Puerto Rico Department of Justice prosecutor Camilie Soto has been invited to act as a Special Assistant United States Attorney to assist AUSA Morgan with the Federal prosecution of this case.
If convicted, the defendant faces a mandatory minimum sentence of incarceration of ten years and a possible maximum statutory penalty of life imprisonment.
“This is a flagship case to demonstrate the excellent cooperation that exists between local and Federal authorities in Puerto Rico,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. “The public should be aware that there are two sovereigns out there watching over their children. If a situation like this one presents itself, the U.S. Attorney’s Office will not hesitate to work together with local authorities to maximize our joint prosecutorial resources and bring to justice those who believe they can molest our children with impunity.
“Anyone who targets children for sexual exploitation should also consider themselves a target by HSI and by our law enforcement partners,” said Ángel Meléndez, special agent in charge of HSI San Juan. “HSI aggressively uses its investigative authorities to protect our communities from those who seek to sexually exploit children for their perverse gratification. We have an obligation to protect those most vulnerable in our society who cannot protect themselves.”
Criminal complaints contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
Nine Charged with Conspiracy and Bribery Involving Southern California DMV OfficesRead the Press Release
United States Attorney Laura E. Duffy announced today that a manager who supervises the Licensing Registration Examiners at the California Department of Motor Vehicles ("DMV") in El Cajon, CA, was charged in a criminal complaint for his involvement in a bribery conspiracy that resulted in the production of fraudulent driver licenses for applicants who had failed - or not taken - the required driver license tests. According to court documents, Jesse Mario Bryan supervised DMV officials responsible for conducting driving tests for driver license applicants, including Jim Lynn Bean and Jeffrey Bednarek who were charged in a criminal indictment in May 2012 in a related case (12CR1852-CAB). Agents with the Federal Bureau of Investigation (FBI) and DMV Investigations Division arrested the defendants earlier today.
The complaint also alleges that Alexander Gonzalez recruited applicants who would pay for fraudulently obtained driver licenses. The complaint further alleges that this entire conspiracy involved the payment of more $100,000 in bribes by applicants to recruiters.
According to the complaint, Frank Tom Attiq, Ali Al Nadawi, Saleh Almuzini, Matthew Allan Elliott, Mohamed Alali, James Lester Shaw and Hassan Hamad Althami are applicants who paid bribes to receive fraudulent driver licenses by paying recruiters who brokered the corrupt deals for fraudulent licenses by getting money from the applicants and paying the bribes to the DMV employees.
The complaint alleges that from December 2010 through April 2012, Bryan supervised employees at both at the El Cajon DMV office, located at 1450 Graves Avenue, El Cajon, California, and the Rancho San Diego DMV office, located at 1901 Jamacha Road, El Cajon, California, who falsely entered both "passing" written and "passing" driving test scores for applicants in exchange for bribes ranging from $75 to $600 per license. In May 2012, 21 defendants (four of whom were DMV officials) were charged in an indictment with conspiracy to commit bribery and to produce unauthorized identification documents (12CR1852-CAB).
The complaint unsealed today alleges that the corruption scheme involved the fraudulent production of both Class C (regular) and Commercial Class A driver licenses. The applicants paid recruiters approximately $400-$500 for each fraudulent Class C license, which the conspirators produced at the El Cajon DMV. The complaint alleges that the DMV employees accepted bribes paid by these applicants despite the obvious public safety risk posed. Applicants seeking Commercial Class A licenses (produced at the Rancho San Diego DMV) typically paid recruiters $2,500-$3,000. Commercial Class A driver licenses allow the licensee to drive commercial vehicles weighing more than 10,000 pounds, which can cause enormous harm to the public if operated incorrectly by an unqualified driver. Increasing the danger to the public, DMV employees entered false passing test scores that allowed applicants to fraudulently obtain additional certifications for the operation of the commercial vehicles, such as transporting hazardous materials or towing multiple trailers.
The defendants arrested in the Southern District of California are expected to make their initial appearances before United States Magistrate Judge David H. Bartick at 1:30 p.m. today. Two defendants arrested in the Central District of California are expected to make their initial appearance there and be transferred to the Southern District of California on a later date.
United States Attorney Duffy noted that this is a joint investigation by the FBI and DMV and if anyone in the community has information about corruption at the DMV, they are asked to contact the San Diego Division of the Federal Bureau of Investigation at 877-NO BRIBE (877-662-7423) or the DMV's Investigations Branch-Office of Internal Affairs at 626-851-0173.
The public is reminded that a complaint is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
DEFENDANTS Magistrate Case No. 13MJ0475-DHB Jesse Mario Bryan
Alexander Gonzalez
Frank Tom Attiq
Ali Al Nadawi
Saleh Almuzini
Matthew Allan Elliott
Mohamed Alali
James Lester Shaw
Hassan Hamad Althani SUMMARY OF CHARGESAll Defendants
Title 18, United States Code, Section 371 -- Conspiracy to Commit Bribery and to Produce Unauthorized Identification Documents -- statutory maximum sentence of 5 years in prison, a maximum fine of $250,000, and $100 special assessment.
Defendant: Jesse Mario Bryan
Title 18, United States Code, Section 666(a)(1)(B) -- Bribery -- statutory maximum sentence of 10 years in prison, a maximum fine of $250,000, and $100 special assessment.
Defendant: Alexander Gonzalez
Title 18, United States Code, Section 666(a)(2) – Bribery – statutory maximum of 10 years in prison, a maximum fine of $250,000, and $100 special assessment.
INVESTIGATING AGENCIESFederal Bureau of Investigation
Department of Motor Vehicles - Investigations DivisionNew York Immigration Judge Participates in Naturalization CeremonyRead the Press Release
NEW YORK -- Immigration Judge Joanna Bukszpan from the Executive Office for Immigration Review, New York Immigration Court, delivered the keynote speech and administered the oath of allegiance to approximately 150 candidates during a naturalization ceremony at 26 Federal Plaza in New York on Feb. 8, 2013. The New York District Office of U.S. Citizenship and Immigration Services, Department of Homeland Security, hosted the ceremony.
Biographical Information
Attorney General Janet Reno appointed Judge Bukszpan in September 1995. Judge Bukszpan received a bachelor of arts degree in 1963 from the City University of New York and a juris doctorate in 1976 from Brooklyn Law School. From 1978 to 1995, she was in private practice in New York. From 1976 to 1978, she worked as a trial attorney/general attorney (nationality) for the former Immigration and Naturalization Service in New York. Judge Bukszpan is a member of the District of Columbia and New York State Bars.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Executive Office for Immigration ReviewMedia AdvisoryRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistU.S. Attorney, Other Law Enforcement Leaders to Announce
Indictment in Heroin-Related Death Case
WHEELING, WEST VIRGINIA – The United States Attorney and other local
law enforcement officials will announce the unsealing of a federal indictment involving the delivery of heroin in Brooke County, West Virginia, that led to the death of a local man.
The announcement will take place on Monday, February 11, 2013, at 1:30
P.M. on the second floor of the United States Courthouse, 1125 Chapline
Street, Wheeling, WV.Any questions or inquiries regarding this press event should be directed to
Chris Zumpetta-Parr at the U.S. Attorney’s Office at 304-234-0100.Manhattan U.S. Attorney Announces Charges Against Alleged Leaders of International Atm Skimming RingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Steven G. Hughes, the Special Agent-in-Charge of the New York Field Office of the United States Secret Service, announced today the filing of an Indictment against ANTONIO GABOR and SIMION TUDOR PINTILLIE, two alleged leaders of an international scheme to steal customer bank account information using sophisticated “skimming” technology that secretly recorded the data of customers who used Automated Teller Machines (“ATMs”) at banks in New York, New Jersey, Illinois, and Wisconsin. GABOR and PINTILLIE were arrested in Skokie, Illinois on December 6, 2012 and have been in federal custody. GABOR is being transported to New York for arraignment and will arrive at a date to be determined. PINTILLIE will be arraigned before U.S. District Judge Alison J. Nathan on Tuesday, February 19 at 9:30 a.m.
Manhattan U.S. Attorney Preet Bharara said: “While traditional bank robberies may be on the wane, the charges we bring today are a reminder of the threat that cybercrime poses to banks and their customers. Together with our law enforcement partners, we remain committed to stopping these alleged high-tech bank robbers in their tracks.”
U.S. Secret Service Special Agent-in-Charge Steven G. Hughes said: “The U.S. Secret Service is committed to preventing and mitigating financial crimes against our nation’s financial infrastructure. Such threats involve a wide variety of schemes including the emerging trend of ATM compromises. The U.S. Secret Service is focused on investigating these crimes and bringing those responsible to justice.”
According to the allegations of the Indictment filed in Manhattan federal court earlier today:
From at least April 2012 through December 2012, GABOR and PINTILLIE were the leaders of an ATM skimming ring based in New York and Chicago. GABOR, PINTILLIE, and at least nine other co-conspirators placed electronic devices, which GABOR obtained from Hungary, on security card readers that secretly recorded a customer’s bank account data when the customer used an ATM. The co-conspirators also installed hidden “pin hole” video cameras on ATM machines that secretly recorded customers’ Personal Identification Numbers (PINs) as the customers pressed these numbers on ATM keypads in order to access their accounts. After a period of time, the co-conspirators would remove the skimming devices and provide them to GABOR and PINTILLIE, who would use the stolen bank account and PIN numbers in order to create new bank cards that could be used to withdraw funds from victim accounts.
GABOR and PINTILLIE also maintained stash locations at multiple self-storage facilities where they stored skimming devices and other equipment and materials necessary to execute the scheme. At one location in Queens, New York, GABOR and PINTILLIE stored computer equipment that contained hundreds of hours of video camera footage of individual customers inputting PIN numbers onto ATM keypads, over 1,000 plastic cards encoded with stolen account information, and components for ATM skimming devices and pin hole cameras.
GABOR and PINTILLIE targeted J.P. Morgan Chase (“Chase”), and Capital One, N.A. banks. Throughout the course of the scheme, they engaged in over 50 skimming incidents that resulted in the compromise of over approximately 6,000 individual bank accounts, from which the defendants made and attempted to make over approximately $3 million in unauthorized withdrawals.
GABOR, 30, allegedly a citizen of Denmark, and PINTILLIE, 32, a Romanian citizen, are each charged with one count of conspiracy to commit bank fraud, which carries a maximum of 30 years in prison, one count of conspiracy to commit access device fraud, which carries a maximum of seven and one half years, and one count of aggravated identity theft, which carries a mandatory minimum of two years in prison.
Mr. Bharara praised the Secret Service for its outstanding work investigating this case. He also thanked J.P. Morgan Chase Bank, Capital One Bank, N.A., and Prairie du Sac Bank for their cooperation in the investigation.
This case is being prosecuted by the Office’s Complex Frauds Unit. Assistant U.S. Attorney Timothy T. Howard is in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
US v. Gabor, Pintillie Indictment
Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Arrest of Manhattan Business Owner for Allegedly Running A $1.5 Million Ponzi SchemeRead 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 Office of the Federal Bureau of Investigation ("FBI"), announced today that JASON J. KONIOR, the founder and manager of a number of related business entities in New York City, collectively referred to as “Absolute,” was arrested today for orchestrating a Ponzi scheme. Through Absolute, KONIOR stole approximately $1,500,000 from three hedge fund investors and used the proceeds to pay off prior investors and to pay himself. He was arrested in Manhattan, and is expected to be presented in Manhattan federal court before United States Magistrate Judge James L. Cott on Wednesday.
According to a Complaint unsealed today in Manhattan federal court:
From late 2011 through May 2012, KONIOR organized and managed a Ponzi scheme in which he misappropriated $1.5 million in funds he had solicited from three hedge fund investors. He represented to these hedge funds that Absolute would provide additional trading funds of up to nine times the investment they made in Absolute. As part of Absolute’s “first loss” investment program, KONIOR claimed that he would place the combined funds – the investors’ funds and the additional funds to be provided by Absolute – in a brokerage account designated by Absolute. According to KONIOR, the hedge fund investors would then be able to trade securities utilizing that brokerage account. Under the arrangement, the hedge funds would be responsible for trading losses, and they would share any profits with Absolute.
Instead of establishing brokerage accounts for the three hedge funds, KONIOR misappropriated the funds they provided by paying redemptions to prior investors, making payments to himself, and paying various personal and business expenses. In e-mails, text messages, and telephone conversations, he pretended that he was establishing brokerage accounts for the three hedge fund investors, when he had already stolen their money. In one case, after he repeatedly failed to set up a brokerage account for one of the hedge funds, the manager of the fund sent him a text message stating, “I want my money back. What did you do to it anyway? Are you going to tell me or do you want the SEC to find out?” KONIOR responded with a text message that said, “[w]e have your funds in our acct. Where else would they be?” At the time he wrote the message, he had already used that hedge fund’s investment to pay off other investors and his own expenses.
KONIOR, 39, of Manhattan, has been charged with one count each of securities fraud and wire fraud. The maximum potential penalty for securities fraud is 20 years in prison and a fine of $5,000,000 or twice the gross gain or loss from the offense. The maximum potential penalty for wire fraud is 20 years in prison and a fine of $250,000 or twice the gross gain or loss from the offense.
Mr. Bharara praised the work of the FBI and the Securities and Exchange Commission.
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. President OBAMA established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case is being handled by the Office's Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys John T. Zach and Jason H. Cowley are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant are presumed innocent unless and until proven guilty.
Konior, Jason Complaint
Manager of Family-Owned and Operated Grapevine Drug Mart Pleads Guilty to Federal IndictmentRead the Press Release
Defendant’s Father, Larry Lake, Was Convicted at Trial Last Week for Concealing Assets and Tax Evasion
FORT WORTH, Texas — On the day before his trial was to begin in federal court in Fort Worth, Texas, Travis Keith Lake appeared before U.S. District Judge John McBryde and pleaded guilty to an indictment charging three counts of fraud and false statements in connection with tax returns he filed for tax years 2006, 2007 and 2008, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Lake faces a maximum statutory penalty of three years in federal prison and a $100,000 fine on each of the three counts; restitution could also be ordered. He will remain on bond pending sentencing, which is set for May 31, 2013.
According to the factual resume filed in the case, Travis Lake manages Grapevine Drug Mart, a family owned and operated pharmacy in Grapevine, Texas. According to an order setting conditions for his release, Travis Lake is a resident of Colleyville, Texas.
Travis Lake’s father, Larry Lake, was convicted last week by a federal jury in Fort Worth on one count of concealment of assets (bankruptcy fraud) and three counts of tax evasion. According to the public court record, Larry Lake, also a Colleyville resident, owns and operates several businesses including VIP Finance of Texas, an auto title loan business with branches throughout the Dallas-Fort Worth area; Cash Auto Sales, which handles the auto club memberships for VIP Finance; and is a part owner of Grapevine Drug Mart. Following his conviction, Larry Lake was remanded into custody pending sentencing, which is also set for May 31, 2013, before Judge McBryde. He faces a maximum statutory penalty of five years in federal prison and a $250,000 fine on each count.
According to the factual resume filed in Travis Lake’s case, between 2006 through 2008, he received quarterly and weekly payments of income drawn on Grapevine Drug Mart’s business bank accounts. The quarterly payments were generally received three to five times per year and varied in amounts ranging from $25,000 to $100,000. Each quarterly payment was made payable to Certified Tech Services, a dba that Lake established, and deposited into Certified Tech Services’ business bank account. The weekly payments, in the form of checks, were much smaller and were made payable to Travis Lake or his wife, and deposited into personal accounts Travis Lake controlled.
The factual resume states that Lake timely filed his federal income tax returns for 2006, 2007 and 2008, but willfully omitted income of approximately $77,070 for 2006; $82,540 for 2007; and $54,000 for 2008, all of which he received from Grapevine Drug Mart.
In related cases, two pharmacists at Grapevine Drug Mart, have also pleaded guilty to tax evasion, according to factual resumes filed in those cases. Norvell Moss admitted that he failed to report approximately $194,150 in income he received from Grapevine Drug Mart for tax year 2008, and as a result of not reporting all of his income, Norvell Moss had an additional tax due and owing of $58,233 for that year. Joseph Moss admitted that he failed to report approximately $159,450 in income he received from Grapevine Drug Mart for tax year 2008, and as a result of not reporting all of his income, Joseph Moss had an additional tax due and owing of $58,554 for that year. Norvell Moss is to be sentenced on May 10, 2013, and Joseph Moss is scheduled to be sentenced on June 24, 2013. They are both residents of Fort Worth, according to orders filed setting conditions for their release.
The cases were investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Brian Poe and Tax Division Trial Attorney Robert A. Kemins are in charge of the prosecutions.
Man Sentenced to Serve 150 Months in Federal Prison for Sex Trafficking of ChildrenRead the Press Release
United States Attorney Laura E. Duffy announced that Randy Martell Ballard, also known as “Jazmin Davis,” was sentenced today by United States District Court Judge Roger T. Benitez to serve 150 months in federal prison, followed by 5 years of supervised release, pay a $1,000.00 fine and mandatory registration under the Sex Offender Registration and Notification Act. Ballard pled guilty in November 2012 to sex trafficking of children, in violation of Title 18, United States Code, Section 1591(a) and (b).
According to court documents, Ballard met a fourteen-year-old girl in El Paso, Texas and transported her to San Diego for the purpose of engaging her in prostitution. He purchased a bus ticket for her using a false name. Court documents further show that Ballard posted online prostitution ads on the Internet with a phone number that the minor had in her possession and provided the minor with false identification documents.
This case arises from an investigation by the National City Police Department and the Immigration and Customs Enforcement’s Homeland Security Investigations.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
DEFENDANT Case Number: 12cr2259BEN Randy Martell Ballard SUMMARY OF CHARGETitle 18, United States Code, Sections 1591(a) and (b) - Sex Trafficking of Children
INVESTIGATING AGENCIESNational City Police Department
Immigration and Customs Enforcement’s Homeland Security InvestigationsMan Indicted for Robbing A Lexington BankRead the Press Release
LEXINGTON, KY - A Lexington man was indicted for allegedly robbing a bank in Fayette County in November of last year.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Perrye Turner, Special Agent in Charge, FBI and Ronnie J. Bastin, Chief of Police for the Lexington-Fayette Urban County Government jointly made the announcement today.
A federal grand jury in Lexington returned the indictment February 7, charging 38-year-old William Abshear with one count of bank robbery.
According to the indictment, Abshear used intimidation to take $1,500 from the Chase Bank on Winchester Road on November 26 of last year.
Court documents allege that Abshear passed a note to the teller demanding that she put money on the counter. After getting the money, Abshear allegedly fled the bank on foot. Lexington Police used surveillance photographs to identify Abshear as a suspect. He was arrested in Phoenix, Ariz., on December 20.
>The investigation was conducted by the Lexington-Fayette Urban County Government and the FBI. Assistant U.S. Attorney Elisabeth Brown is prosecuting the case for the U.S. Attorney’s Office.
A date for Abshear to appear in federal court in Lexington has not yet been set. If convicted, Abshear faces a maximum penalty of 20 years in prison. However, any sentence following a conviction would be imposed after the Court considers the U.S. Sentencing Guidelines and the federal statutes governing the imposition of sentences.
Macy Man Sentenced to 37 Months for AssaultRead the Press Release
United States Attorney Deborah R. Gilg announced that Conrad D. Lyons, Jr., 24, of Macy, Nebraska was sentenced in the United States District Court at Omaha for Assault with a Dangerous Weapon. The Honorable Laurie Smith Camp, Chief Judge, imposed a sentenced of 37 months. After his release from prison Lyons will be on a 3 year term of supervised release.
Lyons had recently been released from federal prison for assaulting a federal officer in August 2012. He was on supervised release for that crime.
On August 3, 2012, Lyons was in a verbal altercation with his girlfriend who is also the mother of his children at a bar in Walthill, Nebraska. He was removed from the bar. His girlfriend left the bar later and began to walk home. Lyons approached her and struck her to the face with both his fist and a full beer can. The force of the beer can split her lip vertically to the base of her nose. Lyons then struck a witness who attempted to intervene. Lyons continued to assault his girlfriend once she entered her residence until the Omaha Tribal Police Department arrived and intervened.
Local Mortgage Broker Found Guilty of Bank and Wire FraudRead the Press Release
David Ovist convicted of submitting fraudulent mortgage loan applications
PORTLAND, Ore. – David Ovist, 45, of Lake Oswego, Oregon, was convicted Friday, February 8, 2013 of the crimes of bank fraud and wire fraud following a ten-day jury trial. Ovist is scheduled to appear before U.S. District Court Judge Anna J. Brown on May 7, 2013 for sentencing on these charges.
Ovist was a licensed mortgage loan broker and the owner of Oregon Mortgage Services, Inc., located in Beaverton, Oregon. The federal indictment charged that Ovist, acting as a residential mortgage loan broker, knowingly prepared, on behalf of eight borrowers, residential loan applications related to 15 different properties that falsified the borrower’s financial qualifications. The applications were then submitted by Ovist to eight different mortgage lenders with the intent that the lenders would approve mortgage loans for those properties based upon the false financial qualifications provided in the loan applications. The jury convicted Ovist of 12 of the 15 counts in the indictment.
“The effects of mortgage fraud committed during the housing bubble of 2006-2008 continue to impact the livability of our community,” said U.S. Attorney Amanda Marshall. “This conviction demonstrates that the Department of Justice remains committed to investigate and prosecute those who wreaked havoc on our financial institutions and real estate markets.”
“Mortgage fraudsters believe their criminal schemes will put them – and their clients – on the easy road to riches,” said Greg Fowler, Special Agent in Charge of the FBI in Oregon. “Our agents work to ensure that these criminals find themselves on the road to federal prison instead. With the help of the community we serve, we will continue to identify those who would subvert the American dream of home ownership and bring them to justice.”
At sentencing, the maximum penalty for each of the three bank fraud convictions is thirty years in prison and a maximum fine of $1,000,000. The maximum penalty for each of the nine wire fraud convictions is twenty years in prison and a maximum fine of $250,000. The actual sentence will be determined under the Federal Sentencing Guidelines based, in part, on the total amount of losses suffered by the mortgage lenders as a result of the loans.
The investigation was initiated by the Portland office of the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Hannah Horsley and Scott Erik Asphaug.
Local Businessman Charged with Wire Fraud for Using Investors' Funds as His Personal Piggy BankRead the Press Release
Defendant Allegedly Stole Approximately $800,000 from His Business Investors
ATLANTA – The co-founder of Geometrix has been charged in a federal criminal information with defrauding business investors of approximately $800,000. Kevin Patrick Loughery, 49, of Atlanta, Georgia, who co-founded Geometrix in 2007, was arraigned today before United States Magistrate Judge Alan J. Baverman on the federal charge of wire fraud, and was released on bond.
“Instead of keeping his business investors’ funds secure in an escrow account, the defendant is charged with using hundreds of thousands of dollars to support his lavish lifestyle,” stated United States Attorney Sally Quillian Yates. “The charges against Loughery reflect our ongoing commitment to crack down on investment fraud.”Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “When the defendant diverted investor funds to his personal account, he left behind his multiple investors-turned-victims now suffering substantial financial losses while he pursued a life of affluence. The FBI remains well-suited and committed to investigating such cases of wire fraud that often significantly impact many victims.”
According to United States Attorney Yates, the charges and other information presented in court: In 2008, Kevin Patrick Loughery began soliciting investments from his friends and business associates in Geometrix, a Georgia start-up company that he co-founded in 2007. Loughery assured investors both telephonically and via email that their investment would remain in escrow until the completion of Geometrix’s issuance of stock and accompanying documentation.
In an email to one such investor, Loughery assured the investor that the money would be kept in an escrow account, and Loughery instructed the investor to wire the money into such an account. However, the money never went to an escrow account because Loughery’s wiring instruction was not for an escrow account, but rather was for Loughery’s own account for a separate business, KLM Investments, of which Loughery was the sole proprietor. The investor wired over $300,000 into the account. Loughery then sent the investor an email stating that the investor would receive 400,000 shares of Geometrix for his investment. The investor never received those shares.
In total, Loughery solicited $780,000 in investments from various investors that were supposed to be kept in escrow but instead were spent by Loughery. Loughery subsequently declared bankruptcy.
This case was investigated by special agents of the Federal Bureau of Investigation.
Assistant United States Attorney Karlyn J. Hunter is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Linda Reynolds Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on February 11, 2013, before U.S. District Judge Sam E. Haddon, LINDA REYNOLDS, a 63-year-old resident of Great Falls, was sentenced to a term of:
Prison: 262 months
Special Assessment: $100
Supervised Release: 5 years
REYNOLDS was sentenced in connection with her guilty plea to conspiracy to possess with intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica A. Betley, the government stated it would have proved at trial the following:
In July 2012, detectives from the Great Falls Police Department became alerted to a potential methamphetamine distribution ring in Great Falls. Detectives believed the methamphetamine was being brought to Montana from somewhere near Spokane, Washington.
On September 6, 2012, police received information from an anonymous caller, who stated REYNOLDS was dealing methamphetamine out of her apartment in Great Falls. The caller had purchased methamphetamine a few times from REYNOLDS in half-gram quantities. Police also spoke to additional witnesses who stated they received their methamphetamine supply from REYNOLDS.
Based on this information, police executed a search warrant at REYNOLDS' apartment that same day. REYNOLDS agreed to speak with police. She said there were drugs in the back bedroom and she currently possessed two ounces of methamphetamine. REYNOLDS explained she began dealing methamphetamine in July and she received her supply of methamphetamine from Joe and Ann Wetzel. She stated she received one ounce in July, an additional ounce in late August, and had just received the two ounces she had in her possession. REYNOLDS received methamphetamine from Mark Knesss. According to REYNOLDS, Kness brought his drug dealer, Louis Kanyid, to REYNOLDS' apartment in the winter of 2012. Kanyid regularly went by "Washington" in Great Falls, because he traveled from the state of Washington. REYNOLDS observed methamphetamine deals between Kness and Kanyid, and Kness would brag about how the methamphetamine was of great quality.
Sometime in July 2012, REYNOLDS heard Kanyid was back in Great Falls. REYNOLDS told police that she then contacted Joe and Ann Wetzel directly to get methamphetamine. Joe and Ann Wetzel had told REYNOLDS they were directly supplied by Kanyid. REYNOLDS paid Joe and Ann Wetzel $1,700 per ounce of methamphetamine. She then resold the methamphetamine for $3,700 per ounce and paid the Wetzels $1,000 for facilitating the deal. Law enforcement seized over 50 grams of actual (pure) methamphetamine in their investigation.
Kanyid, Kness, Joe and Ann Wetzel pled guilty to federal charges.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that REYNOLDS will likely serve all of the time imposed by the court. In the federal system, REYNOLDS does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Russell County Drug Task Force.
Latin Kings’ Second-In-Command Sentenced to 40 Years in Prison for RICO Conspiracy and Related Gang CrimesRead the Press Release
CHICAGO — The second highest-ranking leader nationwide of the Latin Kings street gang was sentenced to 40 years in federal prison after being convicted at trial in 2011 of racketeering conspiracy (RICO) and related charges involving narcotics trafficking and violence that plagued numerous neighborhoods on the city’s north, south and west sides. The defendant, VICENTE GARCIA, Jr., 35, the “Supreme Regional Inca” of the Almighty Latin King Nation, who oversaw the day-to-day illegal activities of all factions of the gang with some 10,000 members in Illinois alone, has been in federal custody since late 2008 and must serve at least 85 percent of his sentence.
The sentence was imposed Friday by U.S. District Judge Charles Norgle, who also ordered five years of supervised release after Garcia’s prison term ends.
Garcia, also known as “DK” or “Disciple Killer,” together with Augustin Zambrano, the leader or “Corona” of the Latin Kings, and two additional defendants were found guilty in April 2011 of running a criminal enterprise to enrich themselves and others through drug-trafficking and preserving and protecting their power, territory and revenue through acts of murder, attempted murder, assault with a dangerous weapon, extortion, and other acts of violence.
“This sentence holds Garcia accountable for the barbaric enterprise known as the Latin Kings and his role in murder, attempted murder, shootings, beatings, drug trafficking, and other crimes,” said Gary S. Shapiro, United States Attorney for the Northern District of Illinois.
Zambrano, 52, was sentenced to 60 years in prison in January 2012. Two other co-defendants convicted at the same trial also received substantial prison terms. Jose Guzman, a former “Nation Enforcer” in the 26th Street, or Little Village, faction, was sentenced to 35 years in prison, and Alphonso Chavez, the “Inca,” or leader of the gang’s 31st and Drake faction, was sentenced to 30 years in prison. Another co-defendant, Fernando “Ace” King, who preceded Garcia as Supreme Regional Inca and pleaded guilty, was sentenced in October 2011 to 40 years in prison.
Trial evidence included audio and video recordings of three beatings inflicted upon gang members for violating the rules and testimony documenting three murders and 20 shootings in the Little Village area. In addition to RICO conspiracy, Garcia was convicted of assault with a dangerous weapon and using a firearm during a violent crime.
Garcia was among a total of 31 co-defendants who were indicted in September 2008 or charged in a superseding indictment in October 2009. Of those 31 defendants, 24 pleaded guilty, four were convicted at trial, and three remain fugitives. From its origin and base in the west side Little Village community, the Latin Kings spread throughout Chicago and Illinois and established branches in other states, where local leaders acted with some autonomy but adhered to the rules and hierarchy of the Chicago gang, according to the evidence in the five-week federal trial.
The sentence was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, together with Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation, and Larry Ford, Special Agent-in-Charge of the Chicago Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Chicago Police Department, the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI) in Chicago, and the Cook County Sheriff’s Police also had significant roles in the investigation, which was conducted through the federal High Intensity Drug-Trafficking Area (HIDTA) Task Force and under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF).
In late 2006, ATF agents led an investigation that resulted in federal drug trafficking and firearms charges against 38 Latin Kings members and associates. In 2008, the FBI led an investigation that resulted in state and federal charges against 40 Latin Kings members and associates, including a dozen of the Zambrano co-defendants. In total, more than 80 Latin Kings members and associates have faced state or federal charges since 2006. The convictions result from a sustained, coordinated effort by federal law enforcement agencies, working together with the Chicago Police Department and other state and local partners, to dismantle the hierarchy of the Latin Kings and other highly-organized, often violent Chicago street gangs.
Garcia and Zambrano were the highest-ranking Latin Kings to be convicted and sentenced since Gustavo “Gino” Colon, who also holds the title of “Corona,” was sentenced to life in prison in 2000.
The government was represented by Assistant U.S. Attorneys Andrew Porter, Nancy DePodesta and Tinos Diamantatos.
For further information about the Garcia trial, see the government’s previous press release at: Latin Kings’ Nationwide Leader, Augustin Zambrano, and Three Other High-ranking Gang Members Convicted of RICO Conspiracy and Related Crimes in Federal Trial.
Las Cruces Man Sentenced to Fifty-One Months in Prison for Robbing Citizens Bank of Las Cruces in August 2010Read the Press Release
ALBUQUERQUE – Claudio Alberto Morales-Medrano, 40, of Las Cruces, N.M., was sentenced this morning to 51 months in prison followed by three years of supervised release for his bank robbery conviction. Morales-Medrano also was ordered to pay full restitution to the victim of his crime. The sentence was announced by U.S. Attorney Kenneth J. Gonzales and Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI.
Morales-Medrano was arrested on Aug. 27, 2010, based a criminal complaint alleging that he robbed the Citizens Bank of Las Cruces (Bank), located at 2841 N. Main Street, in Las Cruces, on that same day. He has been in federal custody since his arrest.
Court records reflect that, on Aug. 27, 2010, Morales-Medrano entered the Bank and approached a bank teller, pulled out a gun that he brandished at the teller, and demanded money. After obtaining cash from the teller, Medrano-Morales left the bank and fled in a silver four door sedan. Shortly thereafter, officers of the Las Cruces Police Department executed a stop of a vehicle matching the description of the vehicle in which the bank robber fled. The officers arrested Morales-Medrano and recovered the money that was taken from the Bank, a black toy gun and clothes matching the description of the clothes worn by the bank robber. On Jan. 12, 2012, Morales-Medrano pled guilty to the bank robbery without the benefit of a plea agreement.
The case was investigated by the Las Cruces office of the FBI and the Las Cruces Police Department, and was prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
Justice Department Moves to Intervene in Lawsuit Alleging Sex Discrimination Against the State of Maryland, Queen Anne’s County and the Queen Anne’s County SheriffRead the Press Release
The Justice Department today moved to intervene in Murphy-Taylor v. State of Maryland, et al., a private lawsuit alleging sex discrimination by the state of Maryland, Queen Anne’s County and the Queen Anne’s County Sheriff. The United States’ complaint in intervention alleges that Kristy Murphy-Taylor’s supervisors in the sheriff’s office subjected her to severe sexual harassment and retaliated against her when she complained. The complaint alleges that these actions violate Title VII of the Civil Rights Act of 1964.
According to the complaint, over a number of years Ms. Murphy-Taylor was subjected to numerous acts of unwanted sexual conduct by multiple supervisors including, multiple incidents of unwanted sexual touching, sexually explicit comments about Ms. Murphy-Taylor and other female officers, and derogatory comments about Ms. Murphy-Taylor based on her sex and about women in general.
Despite Ms. Murphy-Taylor’s complaints to supervisory officials about the unwelcome conduct, the complaint alleges that the defendants failed to take prompt and effective corrective action, subjected her to intolerable working conditions intended to make her quit, and ultimately terminated her for complaining about the sexual harassment.
The United States determined that this case represents a matter of general public importance and that the Department of Justice should participate in it. By intervening, the United States will ensure that the law continues to protect employees and that the price of earning a living will not be enduring constant sexual harassment. The relief sought by the United States is past and future lost wages and compensatory damages for Ms. Murphy-Taylor as well as the implementation of effective sexual harassment policies and procedures and training on these policies and procedures.
Ms. Murphy-Taylor filed a charge of sex discrimination and retaliation with the Baltimore District Office of the Equal Employment Opportunity Commission (EEOC). After investigating these charges, finding reasonable cause to believe that the charging party was subject to discrimination because of her sex, and unsuccessfully attempting to conciliate the matter, the EEOC referred the charges to the Department of Justice. This lawsuit is brought by the Department of Justice as a result of a project designed to ensure vigorous enforcement of Title VII against state and local governmental employers by enhancing cooperation between the EEOC and the Civil Rights Division.
“The Department of Justice will not stand by while women are forced to endure unwanted sexual conduct in their workplaces and then penalized for protesting it,” said Jocelyn Samuels, Principal Deputy Assistant Attorney General for the Civil Rights Division. “Through our partnership with the EEOC, the department continues its commitment to vigorously enforcing the right of employees to be free from sex discrimination in the work place.”
“The work of the commission is made more effective and efficient with interagency coordination,” said Jacqueline A. Berrien, chair of the Equal Employment Opportunity Commission. “Our ongoing project with the Justice Department helps to ensure that employees receive the full protection of the laws prohibiting workplace discrimination.”
“By working more closely together in appropriate cases, EEOC and DOJ are able to use our resources more efficiently to ensure the vigorous enforcement of Title VII in the public sector,” said EEOC District Director Spencer H. Lewis Jr., of the EEOC’s Philadelphia District Office. The Philadelphia District Office of the EEOC oversees Pennsylvania, Maryland, Delaware, West Virginia and parts of New Jersey and Ohio.
Title VII prohibits discrimination in employment on the basis of sex, race, color, national origin or religion, and prohibits retaliation against an employee who opposes an unlawful employment practice, or because the employee has made a charge or participated in an investigation, proceeding or hearing under the Act. More information about Title VII and other federal employment laws is available at www.usdoj.gov/crt/emp/index.html .
The EEOC enforces federal laws prohibiting employment discrimination. Further information about the EEOC is available on its website at www.eeoc.gov.
Johnston City Man Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
On February 8, 2013, Steven A. Smith, 33, of Johnston City, IL, pled guilty in United States District Court in Benton to a one-count indictment which charged conspiracy to manufacture methamphetamine, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
The offense occurred between 2010 and January, 2012, in Williamson, Jackson, and Franklin Counties. Evidence at the plea hearing established that Smith conspired with others in the manufacture of methamphetamine. Smith was involved in stealing anhydrous ammonia and obtaining pseudoephedrine for use during methamphetamine “cooks.” Smith stipulated that he was responsible for the manufacture of between 500 grams and 1.5 kilograms of methamphetamine.
Sentencing was set for May 23, 2013. At that time, Smith faces from 20 years to life imprisonment, a fine of up to $20,000,000 and 10 years’ supervised release. Co-defendants Christopher D. Norris and Robert D. Starcher have previously been sentenced to prison terms of 216 months and 100 months, respectively, for their role in the methamphetamine conspiracy. Two other co-defendants have pled guilty and are awaiting sentencing.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Williamson County Sheriff’s Office, Murphysboro Police Department, Marion Police Department, Illinois State Police, Mt. Vernon Police Department, and Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Johnson County Man Pleads Guilty to Producing Child PornRead the Press Release
KANSAS CITY, KAN. – A man from Johnson County, Kan., has pleaded guilty to producing child pornography, including images of an unclothed two-year old boy in a roaster pan in an oven, U.S. Attorney Barry Grissom said today.
Michael D. Arnett, 38, Roeland Park, Kan., pleaded guilty to one count of producing child pornography. In his plea, Arnett admitted that investigators found child pornography on his computer when they served a search warrant May 15, 2012, at his home in Roeland Park.
The case began when Homeland Security Investigation’s Operation Holitna seized child pornography including images of victims who appeared to be from the area of Overland Park, Kan. Investigators focused on a water bottle in one of the photos bearing the words “Midwest Aquatics” and a phone number beginning with the 913 area code. Midwest Aquatics is a swim and scuba center located at 7565 W. 160th Street in Overland Park.
With the assistance of teachers at an elementary school in Shawnee Mission, investigators ultimately identified three boys who been photographed at Arnett’s home at 5451 Juniper Drive in Roeland Park. At the time the photos were taken, the boys were 11, 8 and 2 years old.
Among the images investigators found was one of a naked boy about two years old lying in a roaster pan that was placed inside an open oven. Another image showed the same boy in the roaster pan with the oven door shut.
Investigators learned that Arnett met the children while he was driving for Kaw Valley Health Systems, a nonprofit corporation that provides medical care and social services for children. He drove them to family visitations, counseling and other appointments.
Sentencing is set for May 13. Arnett faces a penalty of not less than 15 years and not more than 30 years in federal prison and a fine up to $250,000. Grissom commended ICE’s Homeland Security Investigations, the Johnson County Sheriff’s Department and Assistant U.S. Attorney Kim Martin for their work on the case.
Investment Advisor Sentenced to Prison in $2 Million SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced that Paul D. Wolfe, 42, formerly of Hobe Sound, Florida, was sentenced today to 44 months’ imprisonment, to be followed by three years of supervised release. Wolfe was also ordered to pay restitution in the amount of $2,279,148.36.
Wolfe previously pled guilty to one count in an Information charging him with wire fraud in connection with an investment scheme involving approximately $2.2 million in losses.
According to court documents, Wolfe’s investment fraud scheme spanned from 2005 through 2011. Wolfe, who operated as an unlicensed investment advisor, admitted that he provided false and fraudulent investment return data to numerous investors and that he inflated investment returns. Furthermore, Wolfe diverted investor funds, in part, to pay for his personal expenses.
Mr. Ferrer commended the investigative efforts of the Federal Bureau of Investigation in this case. The case is being prosecuted by Assistant United States Attorney Stephen Carlton.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Illinois Man Found Guilty of Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that Carl Campbell, 37, of Chicago, Illinois was found guilty of five counts including sex trafficking by force and sex trafficking of children. The guilty verdicts followed a week-long federal jury trial in Sioux Falls.
A federal jury convicted Campbell after hearing evidence that he lured in adults and minors and caused them to engage in commercial sex acts in and around Sioux Falls. He assaulted one victim repeatedly over the course of about 8 months in which he forced her to perform commercial sex acts in South Dakota, Iowa, Wisconsin, and Illinois.
“This defendant has been brought to justice for his role in the sexual enslavement of young women,” said Johnson. “The verdict sends a strong message, if you engage in the heinous act of sex trafficking in South Dakota we will prosecute you to the fullest extent of the law.”
Campbell’s convictions include one count of Sex Trafficking by Force, Fraud, or Coercion; one count of Interstate Transportation for Prostitution; one count of Obstruction of Sex Trafficking Enforcement, and two counts of Sex Trafficking of a Child. Sex Trafficking by Force, Fraud, or Coercion carries a mandatory minimum sentence of 15 years in prison and up to a life maximum. The two convictions for Sex Trafficking of a Child each carry a mandatory minimum sentence of 10 years in prison and up to a life maximum. The remaining two counts involving interstate transportation and obstruction carry maximum prison terms of up to 20 years each.
This case was investigated by Homeland Security Investigation, Federal Bureau of Investigation, the South Dakota Division of Criminal Investigation, the Minnehaha County Sheriff’s Office, Sioux Falls Police Department, and the Franklin County (Illinois) Police Department. It was prosecuted by Assistant U.S. Attorneys Kevin Koliner and Jeff Clapper. A presentence investigation was ordered, and sentencing has been set for April 29, 2013, before U.S. District Judge Karen E. Schreier. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Huntington Man Sentenced to 7 Years in Federal Prison for Firearm and Illegal Drug Possession ChargesRead the Press Release
HUNTINGTON, W.Va. – U.S. Attorney Booth Goodwin today announced that a Huntington man was sentenced to a total of seven years in federal prison for possessing a firearm during a drug trafficking crime and possession with intent to distribute heroin. Gregory Donearl Easterling also known as “Smoke” and “Dion A. Foster,” 38, of Huntington, previously pleaded guilty in September 2012. On December 21, 2011, members of the Huntington Drug and Violent Crimes Task Force conducted a search of the defendant’s Huntington residence. During the search of Easterling’s residence, law enforcement officers found approximately 6.8 grams of heroin located on an open kitchen shelf, an additional six bundles of heroin, three firearms and digital scales. Easterling admitted to law enforcement that he intended to sell the heroin.
Also during the December 2011 search of the defendant’s residence, law enforcement officers seized a loaded .45 caliber pistol that was stored in the rail of the defendant’s bed. Easterling admitted that he was responsible for possessing a total of 27 grams of heroin and 60 30-milligram oxycodone pills.
The Court sentenced Easterling to two years in prison for possession with intent to distribute heroin and five years in prison for possessing a firearm in furtherance of a drug trafficking crime, for a total of seven years in prison.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
This case was also brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
The Huntington Drug and Violent Crimes Task Force conducted the investigation. The prosecution was handled by Assistant United States Attorney Gregory McVey.
Homer Resident sentenced to ten years for distributing drugs to teenage girls and possessing child pornographyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Homer charter boat captain was sentenced in federal court in Anchorage for one consolidated count of distributing drugs to underage individuals and one count of possession of child pornography.
Randall Scott Hines, age 34, was sentenced by United States District Court Judge Timothy M. Burgess to ten years’ imprisonment, to be followed by ten years’ supervised release. Following his release from federal custody, Hines must register as a sex offender for fifteen years.
In imposing the ten-year sentence on Hines, Judge Burgess stated that the facts Hines admitted in the plea agreement “underscore just how serious this offense was.” These facts included that between 2008 and 2011, Hines engaged in sexual relationships with a series of teenage girls in Homer. Hines frequently supplied these same girls with methamphetamine or other drugs, often in conjunction with having sex with them. Four of the six teenage girls with whom Hines had a sex and drug relationship were under the age of sixteen at the time and thus were under Alaska’s legal age of consent.
According to Assistant U.S. Attorney Kim Sayers-Fay, who prosecuted the case, Hines ten year sentence and ten year period of supervised release reflects that his crimes involved a pattern of sexual abuse. Hines also pled guilty to possessing a sexually explicit video clip of him engaged in sex conduct with one of the minor victims. By virtue of that child pornography conviction, Hines will be required to register as a sex offender for fifteen years following his release from federal custody.
During his sentencing remarks, Judge Burgess rejected the suggestion that Hines’ own methamphetamine addiction mitigated his culpability for his conduct. Judge Burgess told Hines, “[T]he bottom line is, in those instances that were outlined and detailed in the plea agreement in this case, there was one adult in the room. One adult. And that was you! You were the adult. I don’t care if you were drunk. I don’t care if you were on methamphetamine or oxycodone. You were the adult in the room, and you didn’t act like the adult in the room”. Adding, “I hope this is a cautionary tale.”
Hines’ plea agreement required him to fund a $160,000 trust fund to help victims obtain drug treatment and counseling. Judge Burgess noted this positive step, but observed that it would not make amends for the crimes, which had “significant and devastating effect on the victims and their families,” many of whom had sought restraining orders against Hines. As one mother told the court, Hines’ “age and finesse” allowed him to manipulate young women who had “not yet developed the ability to discern or recognize the evilness of his ways.”
Ms. Loeffler commends the persistence of the victims and their families in this case, as well as the work of the FBI and Anchorage Police Department Vice Unit as part of the Innocence Lost Task Force, whose combined efforts culminated in Hines’ convictions.
Hedge Fund Manager and C.P.A. Administrator for $40 Million Ponzi Scheme Convicted by JuryRead the Press Release
Defendant Stole Victims’ Money to Build Personal Mansion through Belizean Shell Company
CHARLOTTE, N.C. – On Friday, February 8, 2013, a federal jury in Charlotte convicted certified public accountant Jonathan D. Davey, 48, of Newark, Ohio of four criminal charges relating to an investment fraud conspiracy, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
The federal indictment, returned in February 2012, charged Davey with serving as the “Administrator” for numerous hedge funds for the Black Diamond Ponzi Scheme, with soliciting over $11 million from victims with his own hedge fund, “Divine Circulation Services,” and with tax evasion. The charges arise out of the Black Diamond investigation, which has brought criminal charges against eleven individuals and CommunityONE Bank, relating to conduct between October 2007 and April 2007 that deprived over 400 victims of more than $40 million.
U.S. Attorney Tompkins is joined in making today’s announcement by Roger A. Coe, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Jeannine A. Hammett, Special Agent in Charge of the Internal Revenue Service - Criminal Investigation Division (IRS-CI).
According to evidence presented at trial, Davey lied to collect over $11 million from victims mainly in North Carolina, Virginia, and Ohio for his hedge fund by claiming, among other things, that he had done due diligence on Black Diamond and was operating a legitimate hedge fund with significant safeguards, when, in reality, neither claim was true. Then, as Black Diamond began to collapse, Davey and other hedge fund managers started a derivative Ponzi scheme using a so-called “cash account” that Davey controlled. Davey and his co-conspirators collected over $5 million from new victim investors for the cash account, and used the new victim money to make Ponzi payments to old investors and themselves. The evidence at trial showed that, as Administrator for the scheme, Davey controlled most funds and wires for the scheme, and published a website for victims that reflected false returns. At trial, the Government showed that by the end of the scheme, the website reflected over $120 million in supposed value for victim-accounts when Davey and the hedge fund managers in reality had less than $1 million total in their accounts.
According to evidence presented at trial, Davey used an elaborate network of shell companies to evade taxes and commit money laundering with the proceeds of the Ponzi scheme. In particular, Davey used an offshore shell company in Belize to funnel money to build a mansion in Ohio, creating a sham “loan” by pretending that investors had “loaned” investment money to the Belizean shell company that was then used to build Davey’s personal mansion.
Other defendants convicted in this case are set forth below.
Keith Franklin Simmons, 47, formerly of West Jefferson, N.C., was convicted following a jury trial of securities fraud, wire fraud, and money laundering. Simmons was sentenced to 50 years in prison on May 23, 2012.
Bryan Keith Coats, 52, of Clayton, N.C., pleaded guilty on October 24, 2011, to conspiracy to commit securities fraud and money laundering conspiracy. Coats was sentenced to 15 years in prison on November 16, 2012.
Deanna Ray Salazar, 55, of Yucca Valley, Calif., pleaded guilty on December 7, 2010, to conspiracy to commit securities fraud and tax evasion. Salazar was sentenced to 54 months in prison on May 23, 2012.
Jeffrey M. Muyres, 37, of Matthews, N.C., pleaded guilty on May 17, 2011, to conspiracy to commit securities fraud and money laundering conspiracy. Muyres was sentenced to 23 months in prison on January 18, 2012.
Roy E. Scarboro, 48, of Archdale, N.C., pleaded guilty on December 3, 2010, to securities fraud, money laundering, and making false statements to the FBI. Scarboro was sentenced to 26 months in prison on May 4, 2011.
James D. Jordan, 49, of El Paso, Texas, pleaded guilty on September 14, 2010, to conspiracy to commit securities fraud. Jordan was sentenced to 18 months in prison on June 29, 2011.
Stephen D. Lacy, 53, of Pawleys Island, S.C., pled guilty on December 9, 2010, to conspiracy to commit securities fraud. Lacy was sentenced to six months in prison on May 4, 2011.
Chad A. Sloat, 34, of Kansas City, Missouri, pleaded guilty on October 17, 2012, to conspiracy to commit securities fraud and failure to file a tax return. Sloat is currently waiting to be sentenced.
Jeffrey M. Toft, 50, of Oviedo, Fla., pleaded guilty on November 26, 2012, to conspiracy to commit securities fraud, conspiracy to commit wire fraud, and conspiracy to commit money laundering. Toft is currently waiting to be sentenced.
Michael J. Murphy, 52, of Deep Haven, Minnesota, pleaded guilty on January 22, 2013, to conspiracy to commit securities fraud. Murphy is currently waiting to be sentenced.
On April 27, 2011, a criminal bill of information and a Deferred Prosecution Agreement were filed against CommunityONE Bank, N.A., related to its failure to file a suspicious activity report (SAR) and maintain an effective anti-money laundering program. As court records show, Simmons was a customer of CommunityONE, and used various accounts with the Bank in furtherance of the Ponzi scheme. However, according to filed court documents, the Bank did not file any suspicious activity reports on Simmons, despite the hundreds of suspicious transactions that took place in his accounts. The Bank agreed to pay $400,000 toward restitution to victims of the Ponzi scheme that operated through accounts maintained at the bank.
Davey was convicted of all charges following a 45 minute jury deliberation. Davey faces a statutory maximum sentence of five years in prison for count one (securities fraud conspiracy) and a $250,000 fine, a maximum of 20 years in prison for count two (wire fraud conspiracy) and a $250,000 fine, a maximum of 20 years in prison for count three (money laundering conspiracy) and a $250,000 fine, and a maximum of five years in prison for count four (tax evasion) and a $250,000 fine. Davey has been released on bond and a sentencing date has not been set yet.
This matter is being prosecuted by Assistant United States Attorneys Kurt W. Meyers and Mark T. Odulio of the Western District of North Carolina, and the case against Jeffrey Muyres was prosecuted by Assistant United States Attorney Mark T. Odulio. The investigation is being handled by the FBI and the IRS.
Hampton Man Sentenced for Wire FraudRead the Press Release
NEWPORT NEWS, Va. – Virgil Williams, Jr., 46, of Hampton was sentenced today to 34 months in prison for wire fraud.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, made the announcement after sentencing by United States District Judge Robert G. Doumar.
Williams pled guilty on September 18, 2012. According to court documents, Williams owned Showcase Exclusive Imports, Inc., a retail auto sales business operating in Newport News. Williams obtained financing, known as “floor plans,” through various entities to finance the purchase of vehicles sold at his dealership. In 2006, his line of credit collapsed and he was forced to seek alternative financing. He sought and obtained financing from various lenders using fraudulent bank statements and earning reports causing extensive losses to those lenders. Williams also established a separate dealership through which to submit credit requests. At sentencing Williams was ordered to pay approximately $965,000 in restitution.
This case was investigated by FBI. Assistant United States Attorney Brian J. Samuels prosecuted this 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.Greater Harrison Task Force Takes the Lead on Drug Education in North Central West VirginiaRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistSchool Officials & Law Enforcement Join Forces to Fight Addiction, Overdoses
CLARKSBURG, WEST VIRGINIA – Law enforcement leaders and local school administrators announced a new drug education and outreach program for North Central West Virginia on Thursday known as Project FUTURE: The Right Prescription for West Virginia.
Board members from the Greater Harrison County Drug & Violent Crimes Task Force (hereinafter “Task Force”) were joined today by Harrison County School Officials in making the announcement. According to United States Attorney William J. Ihlenfeld, II, Project Future is a comprehensive strategy designed to educate parents and children about the dangers of prescribed medicine, synthetic drugs, and other illegal drugs that are plaguing communities in West Virginia.
“The goal of Project Future is for every child to live a life free from substance abuse, and we plan to achieve that goal by the aggressive enforcement of drug trafficking laws as well as by educating our youth about the dangers of drugs,” said Ihlenfeld.
Dr. Gregory Moore, Assistant Superintendent of Harrison County Schools stated: "Prescription drug abuse is the leading type of drug abuse in the state of West Virginia. Project Future will supplement the educational programs Harrison County Schools already has in place that focus on prescription and illegal drugs in order to give our school system a comprehensive approach to teach children about the dangers of drug abuse. Since prescription drugs come from a doctor, people tend to believe that they are safe. But unless those drugs have been prescribed to you -- nothing could be further from the truth."
“The Task Force has a responsibility to do more than just arrest, indict, and lock people up,” said Chief John Walker, Bridgeport, WV, Police Chief and Chairperson of the Task Force Board. “We have a duty to inform the young people of Harrison County that the choices they make on a Friday or Saturday night at a party could affect them for the rest of their lives, or could even end their lives.”
Over the next year members of the Task Force Board will visit schools in North Central West Virginia and they’ll be joined by special guest speakers with real-life experience in dealing with addiction. In addition, community awareness meetings will be held in the evenings so that parents can be fully informed and made aware of warning signs that their children may be using drugs.
The Project Future events that have already been scheduled for the area include:
February 21, 2013
9:30 A.M. - Robert C. Byrd High School (11th & 12th grades)
1:30 P.M. - Robert C. Byrd High School (9th & 10th grades)
6:00 p.m. – Community Awareness Meeting (at Robert C. Byrd High School)February 22, 2013
9:00 A.M. - Bridgeport Middle School (7th & 8th grades)
10:30 A.M. – Washington Irving Middle School (8th grade)
1:45 P.M. – Liberty High School (9th & 10th grades)March 27, 2013
Calhoun County Middle-High School (7th thru 12th grades) Gilmer County High School (7th thru 12th grades)April 9, 2013
Cameron High School (7th thru 12th grades)April 30, 2013
Tucker County High School (9th thru 12th grades)May 1, 2013
Liberty High School (11th & 12th grades)
Fairmont Senior High School (9th thru 12th grades)The dates of additional events in Marion, Monongalia, Mineral and Hampshire Counties are in the process of being finalized and will be announced in the near future.
The Project Future program has partnered with United States Senator Jay Rockefeller, who has been a leader in Congress in tackling the issues related to prescription drug abuse. Drug Free Clubs of America is also a partner with the initiative.
U.S. Attorney Ihlenfeld said that he encourages other schools and community groups that are interested in hosting a Project Future event to contact his office at 304-234-0100.