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26 March 2013
Ukranian National Sentenced to Prison for Access Device FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a 29-year-old Ukranian national who resided in the Poconos at the time of his arrest was sentenced Monday to serve 27 months in prison for access device fraud by Senior U.S. District Court Judge James M. Munley.
According to United States Attorney Peter J. Smith, Igor Shaposhnikov, age 29, who resided in Stroudsburg, Pennsylvania, at the time of the offense, previously pleaded guilty to possessing approximately 140 counterfeit credit cards with the intent to defraud. Shaposhnikov committed the offense in June 2008.
Shaposhnikov was indicted by a federal grand jury on June 17, 2008, as a result of an investigation by the Federal Bureau of Investigation.
Judge Munley ordered that the 27-month prison sentence in this case run consecutive to a 102-month prison sentence imposed on Shaposhnikov in the Southern District of Florida for similar conduct committed by the defendant after he fled the Middle District of Pennsylvania while awaiting sentencing in this case.
Judge Munley also ordered that Shaposhnikov be placed on three years of supervised release after serving his prison sentence, pay restitution of $33,814.09, pay a $100 special assessment, and forfeit to the United States $8,297 in cash, a Samsung Plasma Television, two Sony Handycams, and a 2006 Chrysler vehicle. Shaposhnikov also faces possible deportation as a result of his conviction.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
U.S. Attorney Stephanie A. Finley and Other Louisiana Citizens Honored at Alpha Kappa Alpha Sorority's 81st Regional Conference for Public ServiceRead the Press Release
Lafayette, La. – United States Attorney for the Western District of Louisiana, Stephanie A. Finley, was recognized on March 22, 2013, at Alpha Kappa Alpha Sorority’s 81st Regional Conference for her public service as U.S. Attorney for the Western District of Louisiana. The public service award is presented to citizens for distinguished service to their community as a part of the organization’s commitment to serve mankind. Alpha Kappa Alpha is an international service organization founded in 1908 as the oldest Greek-letter sorority established by African-American college-educated women.
United States Attorney Finley is a Grambling State University and Southern University Law Center graduate who was selected by President Barack Obama in January of 2010, after being recommended by Senator Mary Landrieu and confirmed by the U.S. Senate in June of 2010, to serve as the United States Attorney for the Western District of Louisiana. She was sworn into office on June 2, 2010. Ms. Finley is the first woman in the State of Louisiana appointed as U.S. Attorney. She serves as the chief law enforcement officer for 42 of the 64 parishes in Louisiana and is charged with the prosecution of criminal cases brought by the Federal Government and the prosecution and defense of civil cases in which the United States is a party.
Other honorees included Chief Justice of the Louisiana Supreme Court, Bernette Joshua Johnson, State Representative Patricia Haynes Smith, President of Xavier University of Louisiana, Dr. Norman C. Francis, Executive Director of the Ellis Marsalis Center for Music, A. Michele Jean-Pierre, Director of Human Resources for the Jefferson Parish School System, Cynthia M. A. Butler-McIntyre, Founder of Love in Action Outreach, Inc., Gail Womack-Murray, Oscar nominee Quvenzhane Wallis, Isidore Newman High School Senior Ashley Adams, Isidore Newman Upper School Ninth Grade Honor Student Princeton Jerome Carter, and Kid Chef Eliana de Las Casas.
Two Mississippi Men Sentenced on Federal Drug ChargesRead the Press Release
Jackson, Miss – Antonio Latorn Shelton, a/k/a “Chuck”, 38, of Jackson, was sentenced in federal court today to 72 months in federal prison followed by three years of supervised release for possession with intent to distribute cocaine, U.S. Attorney Gregory K. Davis announced. He was also ordered to pay restitution in the amount of $25,700.
Willie Milton Cage Jr., 28, of Vicksburg, was sentenced to six months in federal prison followed by six months home confinement and three years of supervised release for possession with intent to distribute cocaine. He was also ordered to pay a $1,000 fine.
This case was the result of an extensive investigation targeting illegal narcotics distribution in the City of Jackson. It was investigated by the U.S. Drug Enforcement Administration HIDTA Group with assistance from the Mississippi Bureau of Narcotics, U.S. Marshal Service, Warren County Sheriff’s Department, Vicksburg Police Department, Jackson Police Department and Hinds County Sheriff’s Department. It was prosecuted by Assistant U.S. Attorney Erin Chalk.###
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Three Charged of Sex Trafficking of A MinorThird Sex Trafficking Prosecution in 10 MonthsRead the Press Release
BOSTON - In an indictment unsealed today, a Roxbury woman and two Boston men have been charged with sex trafficking of a minor. This is the third sex trafficking case within 10 months to be charged by United States Attorney Carmen M. Ortiz’s office.
Darian Thomson, a/k/a Bo, 29, of Boston, Corey Norris, a/k/a Case or Jacorey Johnson, 23, of Boston, and Vanessa Grandoit, 24, of Roxbury, were charged with sex trafficking of a minor victim and transportation of the minor with intent to engage in criminal sexual activity. The sentence under the statute is a maximum of life in prison.
According to the indictment, in December 2012, Thomson, Norris and Grandoit conspired to transport a minor from Massachusetts to Rhode Island to engage in criminal sexual activity.U.S. Attorney Ortiz; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Custom’s Enforcement Homeland Security Investigations in Boston; and Boston Police Commissioner Edward Davis, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Amy Harman Burkart of Ortiz’s Civil Rights Enforcement Team.
The details contained in the Indictment are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The aggressive enforcement of federal civil rights laws is a top priority of the U.S. Attorney’s Office. Since U.S. Attorney Ortiz created the Civil Rights Enforcement Team (CRET) in May 2010, the Office has substantially increased its focus on civil and criminal civil rights enforcement. In recent months, the CRET has charged Michael Gemma and Darrell Graham in separate cases with sex trafficking.
Thirty-Four People Charged in Connection with Takedown of Violent Drug Trafficking OrganizationRead the Press Release
Twenty-five Alleged Members and Associates of ‘Dirty Block’ Street Gang Arrested in Pre-dawn Raids; Others in Custody from Previous Arrest
CAMDEN, N.J. – Twenty-five people associated with a criminal street gang that allegedly used threats, intimidation and violence to maintain control of the illegal drug trade in Atlantic City were arrested today in pre-dawn raids by agents of the FBI, the N.J. State Police and officers of the Atlantic City Police Department, U.S. Attorney Paul J. Fishman announced.
The arrests deal a significant blow to the criminal street gang known as “Dirty Block,” a/k/a “Crime Fam,” “3.6.6.12,” or “3.6,” which allegedly operates in a geographic area of Atlantic City that includes the public housing apartment complexes of Stanley Holmes, Carver Hall, Schoolhouse, Adams Court and Cedar Court. The defendants are scheduled to make their initial court appearances this afternoon before U.S. Magistrate Judges Ann Marie Donio and Karen M. Williams in Camden federal court.
“The defendants in this case created an atmosphere of fear and presented real danger to the people who shared their Atlantic City neighborhood,” U.S. Attorney Fishman said. “And they did it so that they could prosper from selling illegal drugs. The law-abiding people of New Jersey – whether they live in the suburbs, on a farm, or in the oldest housing project in New Jersey – deserve to have neighborhoods that are safe places to walk and raise their families. I really hope that today’s arrests will give them that chance.”
FBI Acting Special Agent in Charge David Velazquez said, “The Dirty Block gang had placed a community under siege and extraordinary law enforcement efforts became necessary. The collaboration of federal, state, and local law enforcement authorities have made possible the return of the community to its people.”
Acting Atlantic County Prosecutor James P. McClain said: “This operation has been an excellent example of how cooperating law enforcement can take down a criminal organization and therefore make our community safer. In Atlantic County, we will continue to work with all other available law enforcement agencies to take down those criminal groups that remain or those that might spring up to replace this one.”
The 25 defendants arrested today are among 34 people charged by Complaint – including two brothers who have already been arrested and charged in connection with Atlantic City’s first homicide of 2013 and several defendants already in custody – with participating in a conspiracy to distribute heroin since at least October 2012.
According to documents filed in this case and statements made in court: An investigation using surveillance, confidential informants, controlled drug purchases, record checks and telephone wiretaps revealed that Dirty Block acquires and distributes heroin, cocaine and prescription drugs; maintains various stash houses and drug dens; and possesses numerous illegal firearms to maintain control of drug distribution and to intimidate, threaten and kill rivals.
Intercepted telephone conversations reveal that two of the principal targets charged today – Mykal Derry, a/k/a “Koose,” and his brother Malik Derry, a/k/a “Lik” – conspired to murder a rival drug dealer, Tyquinn James, a/k/a “T.Y.,” and that on Feb. 10, 2013, Malik Derry allegedly carried out the homicide. The two brothers were arrested on Feb. 11, 2013. The intercepted conversations also describe an incident at the Tropicana Casino on Dec. 24, 2012, in which members of the Dirty Block gang spotted members of a rival gang and attempted to obtain weapons in order to ambush them before they left the casino. Failing that, they chased down and violently assaulted their rivals.
The Dirty Block drug trafficking organization utilizes many people who performed various functions to facilitate the enterprise. These include narcotics suppliers (who sell bulk quantities of heroin at discounted prices), gang leaders (such as Mykal Derry and Tyrone Ellis, a/k/a “Rome”), enforcers or “shooters,” distributors, dealers, runners, couriers, facilitators (who provide cars, phones, locations, and money laundering services) and testers (who ingest narcotics, at the request of a distributor, in order to assess quality).Mykal Derry, a Dirty Block gang leader and mid-level heroin distributor, has used several conspirators, who are also charged in the Complaint, to store drugs, money and weapons in their homes and to acquire narcotics from higher-level suppliers for distribution in the Atlantic City area. Derry distributed more than a kilogram of heroin to street buyers in quantities referred to as “bricks” (or “walls”), “bundles,” and “bands” (or “rubber bands”). This heroin was marketed using numerous “stamps” that suppliers, distributors, and dealers use to brand their product.
Mykal Derry, along with Ellis, and their conspirators frequently possessed firearms, despite prior felony convictions prohibiting such possession, in furtherance of the conspiracy’s goals. On two separate occasions in October 2012, Derry and other co-conspirators – all previously convicted felons – photographed themselves, and were observed and video recorded, holding, loading and using firearms at the Shore Shot shooting range in Lakewood, N.J.
Defendants Maurice Thomas and Mark Frye were the primary heroin suppliers to Mykal Derry and Tyrone Ellis, providing them with more than a thousand bricks of heroin between October 2012 and February 2013. Wiretaps revealed that Derryand Ellis are but two of Thomas’ and Frye’scustomers. Thomas and Frye are believed to be leaders of a sophisticated drug trafficking organization that has multiple lines of supply and uses multiple subjects who meet with customers and distribute large quantities of heroin from multiple tower style apartment buildings, on multiple floors. Thomas and Frye were both intercepted over the wiretaps arranging and conducting drug transactions with both Derryand Ellis.
Following Hurricane Sandy in late October 2012, conspirators defrauded the Federal Emergency Management Agency (“FEMA”) by lying about the extent of damage they sustained and provided an address for the receipt of FEMA disaster relief funds that was a storage location used for drug trafficking.Dirty Block was able to secure the release of its members from prison with the services of a corrupt bail bondsman, identified in the complaint as “P.J.L.,” who is employed at Rapid Bail Bonds in Atlantic City. P.J.L. assisted Mykal Derry and other Dirty Block members by procuring fraudulent evidence of employment in order for individuals to act as co-signers of bonds. Derry also has provided P.J.L. with heroin, which intercepted communications reveal was used by P.J.L. for resale.
Despite its specialization in the supply of heroin, Dirty Block members abused various prescription medications and occasionally supplied cocaine as well. On one occasion, one of Mykal Derry’s couriers, Ambrin Qureshi, advised him that she had access to Roxicet prescription medication: “My peoples got a line on pure Roxy straight from the pharmaceutical company, uncut. Raw….”
Intercepted communications also revealed the fascination of several conspirators with “The Wire,” the popular HBO series (2002 to 2008) about the wiretap of a Baltimore-based drug conspiracy. In one conversation between Mykal Derry and his younger brother Malik, Mykal said that he was watching “The Wire” at the time, to which Malik responded that he, too, was watching “The Wire,” and, like Mykal, had “all the seasons.”
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Velazquez; the Atlantic County Prosecutor’s Office, under the direction of Acting Prosecutor McClain; the Atlantic City Police Department, under the direction of Police Chief Ernest Jubilee and Public Safety Director William R. Glass; and the South Jersey Safe Streets Violent Incident and Gang (“Safe Streets”) Task Force, with the investigation leading to today’s arrests.
He also thanked the N.J. State Police; the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Northfield Police Department; the Vineland Police Department; the Brigantine Police Department; the Millville Police Department; the Mullica Township Police Department; the South Jersey Transportation Authority; and the U.S. Secret Service for their contributions.
The government is represented by Assistant U.S. Attorneys Patrick C. Askin and Justin C. Danilewitz of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the Complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.13-142
Defendants
NameAge
Residence
Role
20
Pleasantville, N.J.
Enforcer/dealer
Kamal Allen
25
Atlantic City, N.J.
Enforcer/dealer
Rashada Allen
26
Atlantic City, N.J.
Facililtator
Kareem Bailey
19
Atlantic City, N.J.
Dealer/youngin’
Wanda Bishop
32
Atlantic City, N.J.
Distributor
Wallace Boston
61
Atlantic City, N.J.
Dealer
Jodi Brown
40
Atlantic City, N.J.
Facilitator/dealer/tester
Latasha Cherry
29
Millville, N.J.
Facilitator/courier
Ronald Davis
27
Atlantic City, N.J.
Dealer
Terry Davis
24
Atlantic City, N.J.
Enforcer/dealer
Malik Derry
22
Atlantic City, N.J.
Enforcer/distributor
Mykal Derry
32
Atlantic City, N.J.
Leader/distributor
Quasim Duncan
19
Mays Landing, N.J.
Dealer
Tyrone Ellis
31
Galloway, N.J.
Leader/distributor
Mark Frye
32
Paterson, N.J.
Supplier
Jeffrey Harvey
28
Collings Lakes, N.J.
Distributor
Kasan Hayes
26
Atlantic City, N.J.
Dealer/runner/youngin’
Ronald Johnson
29
Atlantic City, N.J.
Distributor
Raymond Mack
19
Atlantic City, N.J.
Dealer/youngin’
Lamar Macon
24
Atlantic City, N.J.
Dealer/runner/youngin’
Ambrin Qureshi
32
Atlantic City, N.J.
Courier/runner/facilitator
Franklin Simms
29
Atlantic City, N.J.
Distributor/facilitator
Kimberly Spellman
31
Egg Harbor Township, N.J.
Courier/runner/facilitator
Laquay Spence
22
Atlantic City, N.J.
Dealer/runner/youngin’
Shaamel Spencer
29
Atlantic City, N.J.
Enforcer/dealer
Rayshell Strong
32
Atlantic City, N.J.
Distributor/courier/facilitator
Patricia Taylor
33
Atlantic City, N.J.
Distributor
Maurice Thomas
31
Paterson, N.J.
Supplier
Aree Toulson
24
Atlantic City, N.J.
Distributor
Dwayne Townsend
19
Atlantic City, N.J.
Dealer/runner/youngin’
Tiarrah Turner
23
Atlantic City, N.J.
Courier
Dominique Venable
23
Atlantic City, N.J.
Dealer/runner/youngin’
Kareem Young
20
Absecon, N.J.
Dealer/youngin’
Saeed Zaffa
23
Atlantic City, N.J.
Distributor
Dirty Block Complaint
Abdullah, Ibn complaint
Allen, Kamal complaint
Allen, Rashada complaint
Bailey, Kareem complaint
Bishop, Wanda complaint
Boston, Wallace complaint
Brown, Jodi complaint
Cherry, Latasha complaint
Davis, Ronald complaint
Davis, Terry complaint
Derry, Malik complaint
Derry, Mykal complaint
Duncan, Quasim complaint
Ellis, Tyrone complaint
Frye, Mark complaint
Harvey, Jeffrey complaint
Hayes, Kasan complaint
Johnson, Ronald complaint
Mack, Raymond complaint
Macon, Lamar complaint
Qureshi, Ambrin complaint
Simms, Franklin complaint
Spellman, Kimberly complaint
Spence, Laquay complaint
Spencer, Shaamel complaint
Strong, Rayshell complaint
Taylor, Patricia complaint
Thomas, Maurice complaint
Toulson, Aree complaint
Townsend, Dwayne complaint
Turner, Tiarrah complaint
Venable, Dominique complaint
Young, Kareem complaint
Zaffa, Saeed complaintTemple Hills Drug Dealer Sentenced to 27 Years in PrisonRead the Press Release
Distributed At Least 3 Kilograms of PCP Over the Course of the Drug ConspiracyGreenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Samuel Braxton, age 44, of Temple Hills, Maryland, today to 27 years in prison followed by five years of supervised release for conspiracy to possess with intent to distribute phencyclidine (PCP), crack cocaine and heroin. Judge Titus found that Braxton was a career offender based on two previous drug convictions.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation Chief Cathy L. Lanier of the Metropolitan Police; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to Braxton=s guilty plea, from at least June 2010 through February 2012, Braxton was a part of a drug trafficking conspiracy based in and around Temple Hills, Maryland. Braxton regularly received multi-ounce to quarter-gallon quantities of PCP from his sources of supply and would then add starter fluid or other chemicals to the PCP to increase its quantity. Also during this time period, Braxton received heroin, and crack and powder cocaine from his sources of supply. Braxton converted a portion of the powder cocaine into crack. Braxton sold the PCP, heroin, and crack to regular drug customers in the Washington, D.C. metropolitan area, including Prince George’s County.
From November 2011 through January 2012, Braxton was intercepted, on a court-ordered wiretap of his phone, on over 600 drug-related telephone conversations during which he and other co-conspirators discussed the sale of and arranged drug transactions involving PCP, heroin, crack, cocaine, and marijuana. On at least two occasions, a cooperating source purchased PCP from Braxton at his apartment in Temple Hills. Law enforcement seized PCP that Braxton had supplied to co-conspirators, as well as from Braxton’s bowling alley locker and other locations where Braxton stored the PCP. Braxton was overheard by law enforcement on more than one occasion directing his minor son to put a bag or other receptacle containing PCP into his bowling alley locker. A witness also saw Braxton take PCP from his bowling alley locker and put it into his son’s lunchbox, directing his son to bring the lunchbox to Braxton’s apartment.
Over the course of the conspiracy Braxton was responsible for the distribution of at least three kilograms of PCP, 28 grams of crack cocaine and 100 grams of heroin.
United States Attorney Rod J. Rosenstein commended the DEA, FBI, Metropolitan Police Department and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Christen A. Sproule and Steven E. Swaney, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Suspected Pseudocop Pleads GuiltyRead the Press Release
BROWNSVILLE, Texas – Jose Luis Rodriguez-Treto, a 28-year-old Mexican citizen, has entered a plea of guilty to being an illegal alien in possession of a firearm, United States Attorney Kenneth Magidson announced today.
On Jan. 22, 2013, two Homeland Security Investigations (HSI) agents were in their unmarked government vehicle and moved to exit the highway. Rodriguez-Treto was driving his black Ford Escape and activated flashing white lights similar to those used in law enforcement vehicles from behind the agents. Based on the flashing lights and the type of vehicle, the agents believed they were being pulled over by an unmarked police vehicle.
However, rather than pulling them over, Rodriguez-Treto passed them with the vehicle still displaying flashing white lights in front and flashing red lights in the rear. As he passed, the agents noticed a car seat in the back seat and believed him not to be a law enforcement officer. In fact, they thought they were observing a pseudocop vehicle on its way to, or coming from, a crime.
Pseudocops are individuals who portray themselves as law enforcement for the purposes of committing crimes, primarily narcotics-related thefts of drugs or money.
The agents stopped Rodriguez-Treto, who was travelling with his wife and infant child. At that time, agents discovered a loaded pistol magazine in his pocket, a pistol hidden in the glove box, a pistol hidden in the diaper bag, a rifle under the back seat, police scanners, a badge stating “special police,” and other law enforcement paraphernalia. Rodriguez-Treto is a Mexican citizen with no legal status in the United States and admitted to owning the weapons.
Senior U.S. District Judge Hilda G. Tagle has set sentencing for June 26, 2013, at which time he faces up to 10 years imprisonment and a $250,000 fine. Rodriguez-Treto will remain in custody pending that hearing.
This case was investigated by HSI and is being prosecuted by Assistant United States Attorneys Joseph Leonard and Ana Cano.
Smith County Man Sentenced for Federal Drug, Gun CrimesRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 34-year-old Tyler, Texas man has been sentenced to federal prison for drug trafficking crimes in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Marco Aguilera pleaded guilty on Sep. 4, 2012, to conspiracy to possess with intent to distribute methamphetamine and possession of a firearm during a drug trafficking crime. He was sentenced today to 40 months for the drug conviction and 60 months for the firearms conviction. U.S. District Judge Michael H. Schneider ordered the sentences to be served consecutively for a total of 100 months in federal prison.
According to information presented in court, in March 2012, Aguilera possessed and distributed methamphetamine in a Tyler, Texas apartment. He admitted to conspiring with others to distribute more than 150 grams of methamphetamine in the Tyler area. A federal grand jury returned an indictment on Apr. 11, 2012 charging Aguilera with federal drug trafficking violations.
This case was investigated by the Drug Enforcement Administration and the Smith County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Bill Baldwin.
Sioux Falls Man Sentenced for Possession with Intent to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on March 25, 2013 by U.S. District Judge Roberto A. Lange.
Ryan Scott, age 26, was sentenced to 15 months of imprisonment, 2 years of supervised release; and a $100 special assessment to the Victim Assistance Fund.
Scott was indicted for the above charge by a federal grand jury on July 18, 2012 and pled guilty to the Indictment on January 25, 2013. The charge stems from an incident on February 25, 2011, when a vehicle with Ryan Scott along with another person, had gone into the ditch. When deputies arrived at the scene and spoke with the individuals, they detected a strong odor of marijuana and searched the vehicle, discovering a bag containing over one pound of marijuana.
The investigation was conducted by the Mellette County Sheriff’s Office and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Scott was immediately turned over to the custody of the U.S. Marshal Service.
Schuykill County Man Indicted for Producing and Possessing Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury in Scranton returned an indictment today charging a Schuykill County man with the production and possession of child pornography.
According to United States Attorney Peter J. Smith, Robert Lee Raeder, Jr., age 45, of Tamaqua, Schuykill County, was charged by the grand jury for allegedly committing the offenses at various times between January 2001 through December 2012. It is alleged that Raeder produced videos and other images and then maintained them on his computer.
The charges against Raeder stem from an investigation by the Pennsylvania State Police Computer Crimes Unit and United States Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Raeder is currently in custody on related state charges.
U.S. Attorney Smith requests that anyone with information related to this matter please contact the U.S. Department of Homeland Security Tipline at 1-866-347-2423.
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.
Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the mandatory minimum penalty under the federal statute is 15 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Sarasota Man Sentenced to 5 ½ Years in Federal Prison for Narcotics and Firearm ChargesRead the Press Release
Tampa, FL - U.S. District Judge James D. Whittemore yesterday sentenced Oneil Marlon Martin, a/k/a David Lawrence Motta (33, Sarasota) to 66 months in federal prison for possessing with intent to distribute marijuana and possessing a firearm in furtherance of that drug trafficking crime. The court also ordered Martin to forfeit two firearms and assorted ammunition which were used, or intended to be used, to facilitate the offenses. Martin pleaded guilty on January 3, 2013.
According to court documents, federal and state law enforcement agents executed a search warrant at Martin's house on October 19, 2012. During the search, agents found marijuana and marijuana paraphernalia throughout the house. They also found two firearms and assorted ammunition. In addition, the agents recovered $17,846.00 in cash from Martin's house.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Drug Enforcement Administration, and the Sarasota Police Department. It was prosecuted by Assistant United States Attorney Joseph W. Swanson.
Santa Teresa, N.M., Man Pleads Guilty to Unlawfully Possessing Seventy-Two Stolen FirearmsRead the Press Release
Firearms Stolen From Four Federal Firearm Licensed Dealers
in El Paso, Texas, and Las Cruces, New MexicoALBUQUERQUE – Emilio Sandoval, 21, of Santa Teresa, N.M., entered a guilty plea this afternoon to a felony information charging him with possession of stolen firearms under a plea agreement with the U.S. Attorney’s Office. The guilty plea was announced 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.
Sandoval and co-defendant Cisco Rene Gutierrez, 18, of El Paso, Texas, were charged in a criminal complaint filed in federal court in Las Cruces, N.M., on Nov. 8, 2012, that alleged the transportation of stolen firearms from Texas to New Mexico and possession of stolen firearms. Sandoval was arrested on Nov. 14, 2012, in El Paso and transferred to Las Cruces on Nov. 26, 2012, to face the charges in the criminal complaint.
During today’s proceedings, Sandoval pled guilty to a felony information and admitted stealing firearms or aiding and abetting the theft of firearms from four federal firearms licensed (FFL) dealers in El Paso and Las Cruces between May 2012 and Nov. 2012. Specifically, Sandoval admitted his role in burglarizing the following FFLs and stealing an aggregate of 72 firearms:
Sportsman’s Elite in El Paso on May 7, 2012, where 34 firearms were stolen.
Stryker’s Shooting World in El Paso on May 19, 2012, where 10 firearms were stolen.
Country Wide Shooters in El Paso on Sept. 23, 2012, where six firearms were stolen.
Stryker’s Shooting World in Las Cruces on Nov. 13, 2012, where 22 firearms, including four silencers, were stolen.Sandoval admitted that the firearms stolen from FFLs in El Paso were transported to New Mexico shortly after they were stolen. He also acknowledged that all 72 firearms traveled in interstate or foreign commerce before they were stolen.
Sandoval has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Sandoval faces a maximum penalty of ten years in prison and a $250,000 fine.
Co-defendant Gutierrez was arrested in Las Cruces on Dec. 6, 2012, and is detained pending trial. The criminal complaint against Gutierrez is merely an accusation and he is presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the El Paso and Las Cruces offices of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the El Paso Police Department, the Las Cruces Police Department, the Doña Ana County Sheriff’s Office and the Sunland Park Police Department. Supervisory Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
San Francisco Resident Charged with Aggravated Identity Theft and False ClaimsRead the Press Release
SAN FRANCISCO, California – A federal grand jury in San Francisco indicted Eric Flentoil of San Francisco last week with identity theft, access device fraud, and filing false claims, United States Attorney Melinda Haag and IRS-CI Special Agent in Charge Jose M. Martinez, announced.
According to the indictment, in 2012, Flentoil knowingly transferred, possessed, and used, without lawful authority, a means of identification of another person in connection with using an unauthorized access device to obtain things of value, totaling $1,000 or more. The indictment further alleges that Flentoil made and presented to the IRS, two false federal income tax returns, claiming tax refunds which he knew he was not entitled to receive. One of the false tax returns was in the name of Eric Flentoil, the other in the name of an individual identified as A.R.
The maximum statutory penalty for each count of filing a false claim, in violation of Title 18, U.S.C § 287 is five years in prison and a fine of $250,000. The maximum penalty for access device fraud in violation of Title 18, United States Code, Section 1029(a)(2), is 10 years (20 years, if the defendant has a prior conviction under Section 1029). The aggravated identity theft count, 18 U.S.C. § 1028A, requires a mandatory minimum term of 2 years imprisonment consecutive to any other sentence imposed. 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.
Cynthia Stier is the Assistant U.S. Attorney who is prosecuting this case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Flentoil must be presumed innocent unless and until proven guilty.
Salisbury Man Sentenced to over 10 Years in Prison in Bank Fraud SchemeRead the Press Release
Stole the Identity Information of at least 40 Clients of a Residential Mental Health Program to Open Fraudulent Bank Accounts and File False Tax Returns; Led the Conspirators by Using Violence
Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Christopher Andre Devine, age 34; of Salisbury, Maryland; Frederica, Delaware; and Philadelphia, Pennsylvania, today to 121 months in prison followed by five years of supervised release for conspiring to commit bank fraud and aggravated identity theft in connection with a scheme to use the personal identifying information of individuals to open bank accounts and fraudulently obtain cash, merchandise and services.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Wicomico County Sheriff Michael A. Lewis; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.
“Identity theft scheme participants like Mr. Devine wreak havoc on financial institutions as well as those whose identities are stolen,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “Perpetrators of identity theft schemes are motivated by greed, acting as if they are above the law and with total disregard for the consequences to the victims, but today's sentence has brought an abrupt end to Mr. Devine’s criminal behavior. IRS Criminal investigation along with our federal law enforcement partners are equipped to dismantle criminal conspiracies designed solely to defraud and bring the law breakers to the table of justice.”
According to his plea agreement, from December 2008 through December 22, 2011, in Maryland, Pennsylvania and elsewhere, Devine and his co-defendants, Quanishia Williamson-Ross, Lenee E. Williamson and Quashonna Williamson opened or recruited others to open checking accounts at banks and obtain check cards, which the conspirators then controlled. The conspirators then deposited fraudulent checks into the accounts and used the associated check cards at ATM machines to make cash withdrawals from the accounts.
According to evidence presented to the court, conspirators Williamson-Ross and the Williamsons gave all of the proceeds from the scheme to Devine who provided them with little more than food and shelter. The women lived with Devine and were completely financially dependent on him. According to court testimony, Devine used a minor to further the scheme and led the group of conspirators with violence and intimidation, including punching and throwing a conspirator across a room.
Devine also obtained the identifying information of at least 40 individuals who were clients and 60 individuals who were current or former employees, of a residential program for adults with mental health needs (the Program), which he purchased from an individual who was employed at the Program. Devine used the personal identifying information of these victims to open checking accounts via the telephone and Internet that he then controlled for use in the scheme.
Devine and his co-conspirators had fraudulent identification documents made using the personal information of others but with photographs of Devine, Williamson-Ross and Lenee Williamson, which they used, along with the check cards, to make purchases at retail stores, later returning the purchased items for cash. The conspirators also used the check cards to obtain services, such as utilities, cable, and cellular phone service, and to make purchases for their personal benefit at restaurants, drug stores, grocery stores, gas stations and video rentals, and other businesses.
Devine also participated in a scheme to defraud the IRS by preparing and filing false tax returns in the names of individuals recruited for the tax fraud scheme and using the personal identifying information of clients in the Program. For the 2010 tax year, at least 34 false tax returns were filed, claiming $123,126 in false refunds. Refunds from many of the false tax returns were direct deposited into bank accounts controlled by Devine through the bank fraud scheme.
In December 2011, law enforcement searched a van and two residences in Salisbury used by the co-conspirators. Hundreds of pieces of evidence were seized, including: credit/debit cards; SSN cards; fraudulent driver’s licenses; and personal identifying information of approximately 300 individuals, at least 100 of whom were clients or employees at the Program.
Over the course of the scheme, Devine and his co-conspirators used the stolen identifying information of at least 24 individuals to open at least 73 checking accounts at financial institutions, resulting in a loss of at least $200,000.
Quanishia Williamson-Ross, age 31; and Lenee E. Williamson, age 22, both of Salisbury, Maryland, Frederica, Delaware and Philadelphia, Pennsylvania, previously pleaded guilty to the same charges and are awaiting sentencing.
This law enforcement action is part of 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.
United States Attorney Rod J. Rosenstein thanked HSI Baltimore, the Wicomico County Sheriff’s Office, IRS-CI and the Social Security Administration - Office of Inspector General for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Paul E. Budlow and Kristi N. O’Malley, who prosecuted the case.
Rosebud Woman Sentenced on Assault ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota woman convicted of Assault by Striking, Beating, and Wounding and Simple Assault was sentenced on March 22, 2013 by U.S. District Judge Roberto A. Lange.
Sarah Richards, age 25, was sentenced to 1 year probation on each count to run concurrently and a $20 special assessment to the Victim Assistance Fund. Richards was indicted by a federal grand jury on September 19, 2012, and pled guilty to the charge on January 22, 2013.
The conviction stems from an incident that took place on November 30, 2011 when Richards stabbed the victim with a butcher knife.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Marie H. Ruettgers. Richards was released.
Romanian Citizen Involved in Phishing Scheme Sentenced to Five Years in Federal PrisonRead the Press Release
March 26, 2013David B. Fein, United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation, announced that LAURENTIU CRISTIAN BUSCA, 28, a citizen of Romania, was sentenced today by United States District Judge Janet C. Hall in New Haven to 60 months of imprisonment for participating in an extensive Internet “phishing” scheme.
A phishing scheme uses the Internet to target large numbers of unwary individuals, using fraud and deceit to obtain private personal and financial information such as names, addresses, bank account numbers, credit card numbers and Social Security numbers. Phishing schemes often work by sending out large numbers of counterfeit e-mail messages that are made to appear as if they originated from legitimate banks, financial institutions or other companies. The fraudulent email messages ask individuals to click on a hyperlink contained in the email message, which would take the individual to a counterfeit site on the Internet that purports to be the Internet site of the particular bank, financial institution or company. At the counterfeit Internet site, the individual is then asked to enter information such as the individual’s name, address and credit or debit card numbers.
According to court documents and statements made in court, in June 2005 a resident of Madison, Conn., contacted the FBI in New Haven about a suspicious email that she had received that purported to be from Connecticut-based People’s Bank. The email stated that the recipient’s online banking access profile had been locked and instructed the recipient to click on a link to a web page where the recipient could enter information to “unlock” his or her profile. The web page appeared to originate from People’s Bank, but, as the investigation revealed, was actually hosted on a compromised computer in Minnesota. Any personal identifying and financial information provided by the individual would be sent by email to individuals in Romania, or to a “collector” account, which was an email account used to receive and collect the information obtained through phishing.
BUSCA and others were part of a loose-knit conspiracy of individuals from Craiova, Romania, and neighboring areas that shared files, tools, and stolen information obtained through phishing. The co-conspirators used and shared a number of collector accounts, which contained thousands of email messages that contained credit or debit card numbers, expiration dates, CVV codes, PIN numbers, and other personal identification information such as names, addresses, telephone numbers, dates of birth, and Social Security numbers. The co-conspirators then used the personal and financial information to access bank accounts and lines of credit and to withdraw funds without authorization, often from ATMs in Romania.
The investigation revealed that BUSCA was heavily involved in the phishing conspiracy between 2004 and 2006, and analysis of his email accounts revealed that BUSCA possessed more than 10,000 stolen debit or credit card account numbers. In addition to trafficking the stolen information, BUSCA possessed and shared various tools used for phishing, including files used to create counterfeit Internet sites and software needed to produce counterfeit credit and debit cards.
In addition to People’s Bank, financial institutions and companies targeted by the defendants included Citibank, Capital One, Bank of America, JPMorgan Chase & Co., Comerica Bank, Regions Bank, LaSalle Bank, U.S. Bank, Wells Fargo & Co., eBay and PayPal.
This seven-year investigation has resulted in criminal charges against 19 Romanian citizens. On January 18, 2007, a grand jury in New Haven returned an indictment charging seven defendants with various offenses stemming from this scheme. On November 10, 2010, a grand jury returned a second superseding indictment charging an additional 12 defendants, including BUSCA.
The first three defendants to face charges were extradited from Bulgaria, Croatia and Canada. Following the ratification in 2010 of an amended treaty on mutual legal assistance between Romania and the United States, BUSCA and six other defendants were extradited from Romania. BUSCA was extradited in December 2011.
On November 20, 2012, BUSCA pleaded guilty to one count of conspiracy to commit access device fraud. Eight of the other extradited defendants also have pleaded guilty, and one was convicted after trial in December 2012. Nine defendants are still being sought.
This matter is being investigated by the Federal Bureau of Investigation in New Haven, Conn.
U.S. Attorney Fein and Special Agent in Charge Mertz also acknowledged the critical assistance provided by the U.S. Department of Justice Office of International Affairs, the FBI Legal Attaché in Bucharest, Interpol, the Romanian National Police and the United States Marshals Service.
The case is being prosecuted by Assistant United States Attorneys Edward Chang and Sarala Nagala.
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Tom Carson
(203) 821-3722 [email protected]Rochester man pleads guilty to producing child pornographyRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Anthony Davis, 43, of Rochester, N.Y., pleaded guilty before Judge Frank P. Geraci, Jr. to production of child pornography. The charge carries a mandatory minimum sentence of 15 years in prison, a maximum of 30 years and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that in July 2012, City of Rochester Police received a report of from an individual of a sexually explicit video of a seven-year old minor on a smart phone belonging to the defendant. The individual identified the minor victim and Davis's voice from the video. The defendant admitted during the plea proceeding to using the minor to produce a sexually explicit image with his smart phone.
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 the Federal Bureau of Investigation's Cyber Crime Task Force, under the direction of Special Agent in Charge Christopher Piehota, the City of Rochester Police Department under the direction of Chief James Sheppard and the Monroe County District Attorney's Office, under the direction of Sandra Doorley.
Sentencing is scheduled for June 27, 2013 at 9:30 a.m. before Judge Geraci.
Ringleader Sentenced to 11 Years in Prison in Identity Theft Fraud Scheme Involving over 250 Individual VictimsRead the Press Release
Stole the Identities of Doctors Who Applied for Fellowships at Johns Hopkins Hospital Where His Girlfriend WorkedBaltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced ringleader Derrick Hill, age 53, of Woodlawn, Maryland, today to 11 years in prison followed by three years of supervised release for conspiring to commit wire fraud and aggravated identity theft. Judge Bennett also entered an order that Hill pay restitution of $191,180.26.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Jasinski of the United States Secret Service – Baltimore Field Office and Anne Arundel County Police Chief Larry W. Tolliver.
According to his plea agreement, from August to October, 2009, Hill and his girlfriend Renee Cabell conspired with their co-defendants John Coffey and Tawney King to negotiate counterfeit checks drawn on victim bank accounts.
Hill received checks which had been designated for destruction by banks and stolen before they could be destroyed. He also received personal identity information and personal financial information from King who was employed by Highlandtown Community Health Center. According to King’s plea agreement, King accessed patient files and provided Hill with the patient identifying information either directly or through her friend Cabell. Hill used this information to create counterfeit checks using the victim’s financial account information and the identity information of other victims. He also obtained counterfeit identification cards and altered stolen Maryland driver’s licenses so that they displayed victim identity information, but with the photo of one of several co-conspirators, including Coffey.
Hill recruited Coffey to help him cash the checks at banks and retail establishments. If the counterfeit checks were cashed at a retail store, Hill told his co-conspirators what to buy. Proceeds, whether cash or merchandise, were given to Hill, who paid his co-conspirators a small percentage for each successful transaction.
Additionally, Cabell provided Hill with the names and identity information of doctors who applied for fellowships at Johns Hopkins Hospital where Cabell worked, processing the fellowship applications. Hill used the doctors’ identities to rent apartments, buy merchandise and obtain services. Indeed, shortly before Hill’s arrest, Hill was attempting to rent another apartment in a doctor’s identity because he and Cabell were about to be evicted for non-payment on the apartment they rented in the identity of another doctor.
The defendants obtained cash, merchandise and services worth over $188,000. The identities of over 250 individuals were compromised.
Renee Cabell, age 51, of Woodlawn, Maryland, John Coffey, age 43, and Tawney King, age 46, all pleaded guilty previously pleaded guilty to the same charges. Cabell and Coffey were sentenced last week to 30 months and 57 months in prison, respectively, and ordered to pay restitution of $191,180.26. Both were sentenced to three years of supervised release, with Cabell ordered to serve 12 months of her term of supervised release on home detention. King is scheduled to be sentenced later this week on March 28th.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service and Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Tamera L. Fine, who prosecuted the case.
Reliance Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a Reliance, South Dakota man convicted of Abusive Sexual Contact was sentenced on March 25, 2013 by U.S. District Judge Roberto A. Lange.
Jarrod Johnson, age 41, was sentenced to 36 months of imprisonment, 5 years of supervised release; and a $100 special assessment to the Victim Assistance Fund.
Johnson was indicted for Sexual Abuse by a federal grand jury on August 22, 2012 and pled guilty to a Superseding Information on January 4, 2013. The charge stems from an incident occurring between November 2010 and December 2010 in which Johnson was living in the same home as the victim in Fort Thompson, South Dakota. During this time period, Johnson and the victim engaged in sexual intercourse on two separate occasions. At the time of the instant offense, the victim was incapable of appraising the nature of the sexual contact.
The investigation was conducted by the Bureau of Indian Affairs and Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Johnson was immediately turned over to the custody of the U.S. Marshal Service.
Registered Sex Offender Pleads Guilty to Child PornographyRead the Press Release
BOSTON – A Cape Cod man, who is a registered sex offender, pleaded guilty today to possessing child pornography.
Scott Harrison, 45, of West Yarmouth, will be sentenced by U.S. District Chief Judge Patti B. Saris on June 19, 2013. As a result of his previous conviction for indecent assault and battery on a child under age 14, the statute provides for a minimum sentence of 10 years and up to 20 years in prison, followed by five years of supervised release.
On Oct. 27, 2010, law enforcement officers executed a search warrant at Harrison’s home seizing two computers. A forensic examination of the two computers revealed child pornography. Harrison became the target of a police investigation after an undercover trooper downloaded child pornography from Harrison’s Internet file sharing account. Harrison placed child pornography on the Internet to be shared and copied by other Internet users.
United States Attorney Carmen M. Ortiz; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; Chief Frank Frederickson of the Yarmouth Police Department; and Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys David G. Tobin and Suzanne M. Sullivan of Ortiz’s Major Crimes Unit.
Port Authority Police Officer Arrested for Mail FraudRead the Press Release
A criminal complaint was unsealed this morning in Brooklyn federal court charging Port Authority Police Officer Christopher Inserra, a five-year veteran of the Port Authority Police Department (“PAPD”), with mail fraud in connection with his scheme to defraud American Family Life Assurance Company of New York (“AFLAC”) by falsely claiming that he had suffered a debilitating work-related injury to his right arm.1 In furtherance of the scheme, Inserra lied to Port Authority medical staff (“PAMS”), falsely claiming that he suffered from excruciating pain and, at times, loss of mobility to his right arm. As a result, Inserra was classified by the PAPD as injured on duty (“IOD”) and out sick with full pay for nearly two years, from June 1, 2010 until his return to full duty in March 2012. During this time period, Inserra fraudulently filed two claims with AFLAC for short-term disability payments, based upon his alleged inability to return to work. AFLAC approved the claims and mailed two checks to Inserra totaling $31,486.66. Christopher Inserra is scheduled to be arraigned later today before United States Magistrate Judge Robert M. Levy at the U. S. Courthouse, Brooklyn, New York.
The arrest was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Keith E. Milke, Acting Inspector-in-Charge, United States Postal Inspection Service, New York, and Robert Van Etten, Inspector General for the Port Authority of New York and New Jersey.
As alleged in the complaint, beginning on June 1, 2010 and continuing until his return to duty in March 2012, Inserra repeatedly and falsely claimed to medical personnel that, while on duty, he suffered a debilitating injury to the lower bicep and elbow region of his right arm. Inserra further falsely claimed that the injury caused him excruciating pain and difficulty moving his right arm.
As alleged in the complaint, during the same time when Inserra was classified as IOD and collecting disability payments from AFLAC, he performed as the lead singer of a Brooklyn based “punk rock” group originally named “At The End Of The World,” and later renamed “Cousin Sleaze.”2 In photographs and video footage of his band’s numerous performances during this time period, Inserra frequently moved his right arm in a violent back and forth manner inconsistent with the severe level of pain and loss of mobility that Inserra had falsely reported to medical personnel.
For example, as alleged in the complaint, in September 2011, some fifteen months after falsely claiming that he was severely injured, and while still classified as IOD, Inserra told treating medical personnel, in substance, that he continued to be in constant pain, had difficulty using his right hand, and could not fully bend his right arm at the elbow. Inserra also claimed, in substance, that his pain level was an eight (8) on a scale of one (1) to ten (10), with ten (10) representing the highest level of pain.
However, during that same month, Cousin Sleaze embarked on a tour entitled the “Miles of Mayhem Tour,” in which they performed at multiple venues spread across the mid-Atlantic and Southeast regions of the United States. Law enforcement agents located and downloaded multiple photographs and video footage of Cousin Sleaze’s performances at the Sidebar Tavern in Baltimore, Maryland on September 21, 2011, the Coffeehouse in Murfreesboro, North Carolina on September 22, 2011, the Burro Bar in Jacksonville, Florida on September 23, 2011, the Surfer’s Pub in Cocoa Beach, Florida on September 24, 2011, and the Caledonia Lounge in Athens, Georgia on September 26, 2011.3 In the photographs and video footage, Inserra was observed holding a microphone in his right hand; extending his right arm out; curling his right arm back and forth; repeatedly bending his right arm at a ninety degree angle; and violently flailing and thrashing his right arm in an up and down and back and forth fashion. Notably, one of the PAMS medical personnel who had examined Inserra on multiple occasions during the course of his claimed injury reviewed the videotaped footage of the “Miles of Mayhem Tour” and concluded that the movements that Inserra performed with his right arm were inconsistent with Inserra’s stated medical complaints.
“As alleged in the complaint, this officer dishonored himself and his department by sliding down the slippery slope of deception and fraud. This prosecution demonstrates that such a violation of the public’s trust will not be tolerated,” stated United States Attorney Lynch. Ms. Lynch extended her grateful appreciation to the USPIS and the PANYNJ OIG, the agencies responsible for leading the government’s investigation.
Inspector General Van Etten stated “I commend United States Attorney Loretta Lynch and her staff for bringing this prosecution resulting in today’s arrest of a Port Authority Police Officer, who stands accused of violating his solemn oath of office to protect the public. As alleged in the complaint, for more than two years, Officer Inserra lied to medical staff and his fellow police officers at the Port Authority claiming he had a painful and debilitating work-related injury, while performing in a punk rock band and fraudulently collecting short-term disability payments from an insurance policy. Such conduct undermines the dedicated and hard-working officers who put their lives on the line each day. Thanks to our colleagues at the US Postal Inspection Service for their participation in this investigation. The Office of the Inspector General will continue to aggressively pursue and prosecute all those Port Authority employees, including police officers, who engage in deceptive and fraudulent conduct.”
The complaint charges Inserra with mail fraud. If convicted, he faces a maximum sentence of 20 years’ imprisonment and a $250,000 fine.
The government’s case is being prosecuted by Assistant U. S. Attorney Robert L. Capers.
The Defendant:
CHRISTOPHER INSERRA
Age: 31_____________________________
1The charge in the complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty.
_____________________________
2A schedule of Cousin Sleaze’s performances was obtained from the band’s website.
_____________________________
3 Some of the video footage obtained during the course of this investigation was downloaded from http://www.YouTube.com/user/cousinsleaze . Many of the photographs of performances by Cousin Sleaze were downloaded from various Facebook sites that contained photo footage from those performances.
Owner of Landover Business Pleads Guilty to Failing to Pay over $2.2 Million in Employment TaxesRead the Press Release
hile Failing to Pay Employment Taxes, Spent Hundreds of Thousands of Dollars of Corporate Money for His Personal BenefitGreenbelt, Maryland - U.S. District Judge George L. Russell III, sentenced Alphonso Tillman, age 44, of Fort Washington, Maryland today to two years in prison, followed by three years of supervised release, for failing to account for and pay over employment taxes. Judge Russell also ordered Tillman to pay restitution of $2,205,991.40.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Acting Special Agent in Charge Sheila Olander of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“Using money withheld from your employees’ compensation for personal gain is reckless,” said Sheila Olander, Acting Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “Business owners are responsible to withhold and pay over income taxes from their employees’ compensation to the IRS. Today’s sentencing shows failing to do so is a serious offense to which Mr. Tillman is being held accountable.”
According to his plea agreement, Tillman was the president and sole owner of Remote Surveillance Technology Solutions, Inc. (RSTS), and its successor, Remote Surveillance Technology Services, LLC, (RSTServ). The companies were headquartered in Landover, Maryland and provided security guards to protect commercial and residential properties in Maryland, Virginia, Pennsylvania and the District of Columbia.
RSTS and RSTServ withheld taxes from their employees’ paychecks, including federal income taxes, medicare and social security taxes (payroll taxes), which the companies were required to pay over to the IRS on a periodic basis. Tillman failed to file the required forms or pay the payroll taxes due for RSTS and RSTServ, with the exception of payments made by RSTS to the IRS as a result of IRS collection efforts.
Between 2005 and 2008, Tillman made hundreds of thousands of dollars of expenditures from the RSTS and RSTServ business accounts for his personal benefit while, at the same time, failing to pay over to the IRS payroll taxes withheld from employee paychecks.
The total amount of tax loss resulting from Tillman’s failure to pay taxes owed by RSTS and RSTServ is $2,205,991.40
United States Attorney Rod J. Rosenstein praised the IRS-Criminal Investigation for its work in the investigation and thanked Assistant U.S. Attorney Sean B. O’Connell, who prosecuted the case.Northern Michigan Cinemas Owner Sentenced for Tax Evasion and Ordered to Pay Nearly $1,000,000 in RestitutionRead the Press Release
GRAND RAPIDS, MICHIGAN – Elaine Dawson, 69, of Bellaire, Michigan was sentenced to 1 year in prison followed by 1 year of supervised release, announced U.S. Attorney Patrick Miles, Jr. U.S. District Court Judge Janet T. Neff also ordered Dawson to pay restitution of $988,366.00 to the U.S. Internal Revenue Service. The sentence was imposed as the result of an October 10, 2012 guilty plea to a felony information charging her with tax evasion. U.S. Attorney Miles was joined in the announcement by Special Agent in Charge Erick Martinez of the IRS Criminal Investigation.
According to court records, Dawson willfully evaded nearly a million dollars in corporate and personal income taxes between 2004 and 2010. Dawson owned five cinemas in Bellaire, Petoskey, Gaylord, Mackinaw City, and Cheboygan, Michigan. She routinely under-reported the number of patrons who bought movie tickets, and under-reported her receipts from sales of concessions, gift certificates and other items. Dawson skimmed the cash from the unreported sales for personal use, and disclosed only the remaining sales as income when preparing her tax returns.
In addition to paying all the back taxes she had evaded, Dawson is required to pay substantial fraud penalties to the IRS. Dawson liquidated substantial personal assets in order to be able to pay the restitution and penalties.
“Defrauding the tax system does a great deal of harm to the American public,” said Martinez. “Especially in challenging times, everyone’s full contribution counts,” said Miles, “hiding one’s wealth while allowing other hard-working, honest citizens to carry the burden isn’t fair, and won’t be tolerated.”
The case was prosecuted by Assistant U.S. Attorney Nils R. Kessler.
END
North Carolina Women Sentenced for Dealing Meth in East TexasRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – Two North Carolina women have been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Chelsea Elizabeth McDowell, 27, of Hickory, NC, and Sandra Christilov Sylvester, 41, of Lawndale, NC, pleaded guilty in November 2012 to conspiracy to possess with intent to distribute methamphetamine. McDowell was sentenced to 54 months in federal prison and Sylvester was sentenced to 66 months in federal prison today by U.S. District Judge Michael H. Schneider.
According to information presented in court, up until Jan. 29, 2011, McDowell and Sylvester conspired with others to assist in transporting methamphetamine and money obtained from selling drugs to East Texas. During that time, both women were arrested in the Eastern District of Texas for possessing methamphetamine. They each admitted to being responsible for distributing methamphetamine through East Texas to Atlanta, Georgia. A federal indictment was returned on Apr. 11, 2012, charging them with federal drug crimes.
This case was investigated by the Texas Department of Public Safety and prosecuted by Assistant U.S. Attorney Bill Baldwin.
Moore Man Who Stole Veteran Grave Markers from Tribal Cemetary to Sell for Salvage Will Serve Prison TimeRead the Press Release
Grave Markers Stolen Include those of a World War II
Comanche Code Talker and Vietnam VeteranOklahoma City, Oklahoma – Sanford C. Coats, United States Attorney for the Western District of Oklahoma, announced that JASON P. PARAS, 33, of Moore, Oklahoma, was sentenced to serve four months in prison for the theft of two grave markers from a Kiowa-Comanche-Apache Intertribal Cemetery. Paras was charged on the federal court’s Indian country misdemeanor docket on September 20, 2012, and pled guilty on October 18, 2012.
Paras admitted that in June of 2012 he stole several brass grave markers from the Deyo Mission Cemetery, a Kiowa-Comanche-Apache Intertribal Cemetery located on Indian trust land west of Lawton, Oklahoma. The brass grave markers are furnished by the U.S. Department of Veterans Affairs at no cost to the family for deceased military service members. Paras admitted he stole the brass markers to sell to a recycling company in Lawton, Oklahoma, as scrap metal. One of the grave markers was that of a Comanche Tribal member and “Comanche Code Talker” from World War II who was admitted to the Oklahoma Military Hall of Fame in September of 2011. The Comanche Code Talkers were part of a classified special unit of tribal members that used coded messages in the Comanche language to evade detection by German forces during World War II in Europe. Another marker belonged to Comanche tribal member who was a Vietnam veteran. As part of the sentence, Paras will be required to pay to replace the two markers he stole and sold as scrap metal.
The case was investigated by the Comanche Nation Police Department and the Comanche County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Arvo Q. Mikkanen.
Mission Man Indicted for Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota man has been indicted by a federal grand jury for Aggravated Sexual Abuse and Sexual Abuse.
Zachary Poorman, age 25, was indicted by a federal grand jury on March 13, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 20, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to life in custody, a $250,000 fine, or both; life of supervised release; and a $100 Special Assessment. Restitution may also be ordered.
The charge is merely an accusation and Poorman is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Timothy M. Maher is prosecuting the case.
Poorman was remanded to the custody of the U.S. Marshal pending trial. A trial date has been set for May 14, 2013.
Mission Man Indicted for Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota man has been indicted by a federal grand jury for Aggravated Sexual Abuse and Sexual Abuse.
Mart Kirkland, age 23, was indicted by a federal grand jury on March 13, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 20, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to life in custody, a $250,000 fine, or both; life of supervised release; and a $100 Special Assessment. Restitution may also be ordered.
The charge is merely an accusation and Kirkland is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Timothy M. Maher is prosecuting the case.
Kirkland was remanded to the custody of the U.S. Marshal pending trial. A trial date has been set for May 14, 2013.
Midwest City Man Who Fled to Philippines Following Indictment Related to Ponzi Scheme to Now Serve 118 Months in Federal PrisonRead the Press Release
Ordered to Pay Nearly $4.6 Million in Restitution to Victims
Oklahoma City, Oklahoma – JOE DON JOHNSON, 43, from Midwest City, Oklahoma, was sentenced by United States District Judge David L. Russell to serve 118 months in prison for conspiracy to commit money laundering in connection with a Ponzi scheme involving securities fraud, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Johnson was indicted by a federal grand jury on February 3, 2011, along with Brian William McKye, from Bethany, Oklahoma, on a nine-count indictment. Following the indictment, Johnson fled the United States to the Philippines.
The case against McKye continued and McKye was found guilty of securities fraud and conspiracy to commit money laundering on November 17, 2011, following a three-day jury trial. Evidence from trial showed that from 2006 through 2009, McKye, did business as Global West Funding Ltd., Co. Global West Financial LLC, Global West Financial LLC, Sure Lock Financial LLC, Sure Lock Loans LLC, and The Wave-Goldmade Ltd. McKye used these businesses to market investment contracts whereby investors were guaranteed a monthly rate of return from 6.5% to 20% for 6 to 60 months. Investors were told they had “100% total control” of their money and that the investments were secured by risk free real estate notes. However, McKye was not a registered investment advisor or broker-dealer in the State of Oklahoma and he used the money he received from investors to pay his own personal and business expenses and some limited returns to investors to keep the scheme on-going. Through this Ponzi scheme, McKye defrauded 115 victim-investors out of over $4.5 million. McKye’s companies were shut down by the Oklahoma Department of Securities in the spring of 2009.
In March of 2012, Johnson was apprehended in the Philippines and returned to the United States to face trial. On September 26, 2012, Johnson pled guilty to conspiracy to commit money laundering for his role in the Ponzi scheme involving McKye.
At the sentencing hearing, Judge Russell ordered Johnson to serve 118 months in federal prison, followed by three years of supervised release. In addition, Johnson was ordered to pay 4,592,610.68 in restitution to his victims. McKye was sentenced in April of 2012 to serve 262 months in prison, followed by three years of supervised release, and ordered to pay $4,516,208.97 in restitution to his victims.
This case was investigated by the Criminal Investigations of the Internal Revenue Service and prosecuted by Assistant United States Attorney Susan Dickerson Cox.
Mescalero Apache Man Pleads Guilty to Sexually Abusing A MinorRead the Press Release
ALBUQUERQUE – Gregory Warren Second, 22, a member and resident of the Mescalero Apache Nation, pled guilty this afternoon to sexually abusing a minor under a plea agreement with the U.S. Attorney’s Office. The guilty plea was announced by U.S. Attorney Kenneth J. Gonzales and DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services.
Second was arrested in Nov. 2012, on a criminal complaint alleging that in May 2012, he engaged in a sexual act with an Indian child between the ages of 12 and 16 years on the Mescalero Indian Reservation. He has been in custody since his arrest.
During this afternoon’s proceedings, Second entered a guilty plea to a felony information charging him with sexual abuse of a child under the age of 16 years. Second admitted that on May 22, 2012, he knowingly engaged in a sexual act with a 12-year-old child.
Second will remain in federal custody pending his sentencing hearing, which has yet to be set. At sentencing, Second faces a maximum penalty of 15 years in prison to be followed by at least five years of supervised release. Second also will be required to register as a sex offender.
This case was investigated by the BIA’s Office of Justice Services, Mescalero Agency and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, local and tribal 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.justice.gov/psc/.
Medford Man Sentenced in Child Pornography CaseRead the Press Release
BOSTON – A Medford man was sentenced today for possessing child pornography.
James Patrick Judge, 58, was sentenced by United States District Judge William G. Young to three years in prison, followed by five years of supervised release. In January, Judge pleaded guilty to possession of child pornography.In 2011, Judge was arrested after receiving a child pornography video he had ordered through the mail. In a separate case, in May 2012, Judge was arrested at the Medford Public Library after allegedly using the library’s computer to view and print pornographic images of boys. A probable cause hearing in that case is scheduled for April 30, in Somerville District Court.
U.S. Attorney Carmen M. Ortiz; Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service; Bruce Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; and Chief Leo A. Sacco, Jr. of the Medford Police Department, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys David G. Tobin and Suzanne M. Sullivan of Ortiz’s Major Crimes Unit.
Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Insider Trading Charges Against Former Chief Information Officer of Technology Company and Hedge Fund AnalystRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), today announced conspiracy and securities fraud charges against DAVID RILEY, a former Chief Information Officer and Vice-President for Foundry Networks, Inc. (“Foundry”), and MATTHEW TEEPLE, an analyst for an investment advisory firm to a family of hedge funds located in San Francisco, California (“Investment Adviser A”), for their alleged involvement in an insider trading scheme. RILEY allegedly provided material, nonpublic information (“Inside Information”) concerning Foundry, a publicly traded technology company, to TEEPLE. TEEPLE then caused others to execute trades based upon the Inside Information, including in accounts managed by Investment Adviser A. In total, these trades earned Investment Adviser A profits of over $16 million and enabled Investment Adviser A to avoid losses in excess of $11 million. TEEPLE was arrested this morning in San Clemente, California, and is expected to be presented later today in federal district court in the Central District of California. Riley was arrested this morning in San Jose, California, and is expected to be presented later today in federal district court in the Northern District of California.
The Manhattan U.S. Attorney and the FBI also announced the unsealing of the guilty plea of JOHN JOHNSON to conspiracy and securities fraud charges in connection with this insider trading scheme. JOHNSON pled guilty to these charges on March 18, 2013, before U.S. District Judge John F. Keenan.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, when David Riley and Matthew Teeple chose to traffic in inside information involving high-tech companies, they embarked on a high-stakes game that has repeatedly proven to be unwinnable. With the charges against them and the plea of John Johnson that we announce today, the ranks of privileged professionals who behave as if they are above the law continue to swell.”
FBI Assistant Director-in-Charge George Venizelos said: "There may be little to distinguish this case from the dozens of others we have made against industry insiders and investment advisers in the past several years. There is certainly nothing unique about the outcome: If you allegedly traffic in inside information, by providing it or trading on it, you will inevitably be found out, charged and prosecuted."
In a separate action, the U.S. Securities and Exchange Commission (“SEC”) announced civil charges against RILEY, TEEPLE, and JOHNSON.
According to the Complaint and other court documents:
Throughout the insider trading scheme, RILEY obtained Inside Information from Foundry and shared it with TEEPLE. As Chief Information Officer and a Vice President at Foundry, RILEY had access to monthly and quarterly financial reporting, along with other sensitive, non-public information relating to Foundry, well before such information became public. After receiving Inside Information concerning Foundry from RILEY, TEEPLE then shared this information with others, including another analyst who works at Investment Adviser A (the “Investment Adviser A Analyst”), and others who then traded in Foundry securities. Investment Adviser A was an investment adviser for a family of hedge funds.
For example, on July 16, 2008, RILEY provided TEEPLE with Inside Information concerning Foundry’s acquisition by another technology company, Brocade Communications Systems, Inc. (“Brocade”), before it was publicly announced on July 21, 2008. Within two hours of this conversation between RILEY and TEEPLE, TEEPLE made a phone call to the Investment Adviser A Analyst. While TEEPLE and the Investment Adviser A Analyst were on the phone, Investment Adviser A began purchasing a large amount of Foundry stock and call option contracts and selling put option contracts for Foundry. From approximately July 16, 2008 until the July 21, 2008 public announcement of Brocade’s acquisition of Foundry, Investment Adviser A purchased approximately 3,245,380 shares of Foundry. Based upon its trading in connection with the Inside Information concerning Foundry’s acquisition by Brocade, Investment Adviser A profited in the amount of approximately $13.6 million and avoided losses of approximately $7.4 million that it would have incurred due to its prior positions in Foundry.
TEEPLE also provided the Inside Information concerning Brocade’s impending acquisition of Foundry to two acquaintances of his, JOHN JOHNSON and Karl Motey, before the July 21, 2008 public announcement. TEEPLE told JOHNSON and Motey that Foundry was going to be acquired by Brocade, and the approximate price at which Foundry was going to be acquired, which turned out to be substantially accurate when the terms of the acquisition were made public. JOHNSON traded on this Inside Information and profited in excess of $136,000.
In addition, on multiple occasions, RILEY provided Inside Information concerning Foundry’s quarterly financial reporting to TEEPLE in advance of any public announcement. TEEPLE contacted the Investment Adviser A Analyst shortly after these conversations with RILEY in April 2008 and October 2008. Investment Adviser A subsequently traded in large quantities of Foundry equities based upon this Inside Information, amassing millions of dollars in both profits and avoided losses.
RILEY, 47, of San Jose, California, is charged with one count of conspiracy to commit securities fraud, and three substantive securities fraud counts. The conspiracy count carries a maximum sentence of five years in prison and a fine of the greater of $250,000 or twice the gross gain or loss from the offense. Each of the securities fraud counts carries a maximum sentence of 20 years in prison and a fine of $5 million or twice the gross gain or loss from the offense.
TEEPLE, 41, of San Clemente, California, is charged with one count of conspiracy to commit securities fraud, and three substantive securities fraud counts. The conspiracy count carries a maximum sentence of five years in prison and a fine of the greater of $250,000 or twice the gross gain or loss from the offense. Each of the securities fraud counts carries a maximum sentence of 20 years in prison and a fine of $5 million or twice the gross gain or loss from the offense.
JOHNSON, 46, of Arvada, Colorado, is charged with one count of conspiracy to commit securities fraud, and one substantive securities fraud count. The conspiracy count carries a maximum sentence of five years in prison and a fine of the greater of $250,000 or twice the gross gain or loss from the offense. The securities fraud count carries a maximum sentence of 20 years in prison and a fine of $5 million or twice the gross gain or loss from the offense.
Mr. Bharara praised the investigative work of the FBI. He also thanked the SEC. He noted that the investigation is continuing.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
The case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Steve Lee is in charge of the prosecution.
The charges contained in the Complaint against TEEPLE and RILEY are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Riley, David and Teeple, Matthew Complaint
Johnson, John InformationMadison Couple Each Sentenced to more than 10 Years Imprisonment for their Role in a Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that Michael Pojar, 34, and Stacey Pojar, 33, both of Madison, Nebraska, were sentenced on March 25, 2013, to 158 months and 138 months in prison respectively by United States District Judge John M. Gerrard. The two had previously pled guilty for their involvement in a conspiracy to distribute more than one pound of “ice” methamphetamine in the Madison, Nebraska, area from September of 2011 and continuing through October of 2012. Each of the defendants’ sentences included additional prison time as they were both under terms of supervised release for prior felony drug convictions at the time they committed this offense.
This case was the result of a joint investigation by the Drug Enforcement Administration, the Nebraska State Patrol, and Homeland Security Investigations.
Luzerne County Man Indicted on Federal Child Pornography ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury in Scranton returned an indictment today charging a Luzerne County man with the receipt, distribution and possession of child pornography.
According to United States Attorney Peter J. Smith, Jeremy Joseph Box, age 29, of Hazleton City, Luzerne County, was charged by the grand jury for allegedly committing the offenses between 2011 and 2013.
The charges against Box stem from an investigation by the Pennsylvania State Police Computer Crimes Unit and U.S. Immigration and Customs Enforcements (ICE) Homeland Security Investigations (HSI).U.S. Attorney Smith requests that anyone with information related to this matter please contact the U.S. Department of Homeland Security Tipline at 1-866-347-2423.
Box was taken into custody on December 6, 2012 on related state charges.
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.
Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is 30 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Lower Brule Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota man convicted of Assault Resulting in Serious Bodily Injury, was sentenced on March 25, 2013 by U.S. District Judge Roberto A. Lange.
Earl LaRoche, age 54, was sentenced to 5 months of imprisonment. LaRoche is also to pay a $100 special assessment to the Victim Assistance Fund.
LaRoche was indicted by a federal grand jury on May 8, 2012 and pled guilty to Count II of the Indictment on January 7, 2013. The charge stems from an incident occurring in October of 2011, in which the victim and LaRoche were in a relationship, cohabitating together at a residence in Lower Brule. On the evening of October 8, 2011 and into the morning hours of October 9, 2011, they hosted a gathering of friends where alcohol was consumed. The victim was playing table top soccer with others at the gathering when LaRoche came up behind her and bit off a third of her ear.
The victim was taken to the hospital in Chamberlain where it took 25 sutures to re-attach the piece of the ear.
The investigation was conducted by the Federal Bureau of Investigation and Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
LaRoche is to self-report by Tuesday April 2, 2013.
Lower Brule Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota man convicted of Assault Resulting in Serious Bodily Injury, was sentenced on March 25, 2013 by U.S. District Judge Roberto A. Lange.
Earl LaRoche, age 54, was sentenced to 5 months of imprisonment. LaRoche is also to pay a $100 special assessment to the Victim Assistance Fund.
LaRoche was indicted by a federal grand jury on May 8, 2012 and pled guilty to Count II of the Indictment on January 7, 2013. The charge stems from an incident occurring in October of 2011, in which the victim and LaRoche were in a relationship, cohabitating together at a residence in Lower Brule. On the evening of October 8, 2011 and into the morning hours of October 9, 2011, they hosted a gathering of friends where alcohol was consumed. The victim was playing table top soccer with others at the gathering when LaRoche came up behind her and bit off a third of her ear.
The victim was taken to the hospital in Chamberlain where it took 25 sutures to re-attach the piece of the ear.
The investigation was conducted by the Federal Bureau of Investigation and Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
LaRoche is to self-report by Tuesday April 2, 2013.
Laredoan Sentenced to 10 Years for Marijuana ConspiracyRead the Press Release
LAREDO, Texas – Jesus Alberto Rodriguez, of Laredo, has been ordered to prison for possessing with intent to distribute 426 kilograms of marijuana, United States Attorney Kenneth Magidson announced today. He pleaded guilty in October 2012.
Today, U.S. District Judge Marina Garcia Marmolejo sentenced Rodriguez, 36,to 121 months in federal prison to be followed by a five-year-term of supervised release.
In the summer of 2010, Rodriguez discussed with a confidential source about moving a large quantity of marijuana. The discussions concerned Rodriguez obtaining transportation for marijuana he said was coming from the Zapata area to Laredo, the risk due to law enforcement observation in the area and the confidential source acquiring a driver and a means of transportation to get the marijuana to Dallas. As a result of these discussions, Rodriguez arranged to deliver the marijuana, which was going to be approximately 700 to 800 pounds, to the parking lot of a local toy store on San Bernardo Street in Laredo in two separate trucks on July 6, 2010.
Accordingly, a Drug Enforcement Administration (DEA) undercover agent waited in the parking lot, posing as a driver working for the source. Shortly thereafter, Rodriguez said the delivery was going to be in two parts: one truck was going to contain 21 bundles and the other was going to have 10 for a total of 31 bundles of marijuana. The agent then witnessed a white Ford F-250 pull into the parking lot next to the agent. The driver of the Ford F-250 was later identified as a co-defendant, Juan De Dios Cardenas.
De Dios Cardenas told the agent that after he delivered the load, to return to the parking lot where he was going to receive another truck load of marijuana. The agent then got inside the truck and drove to a nearby warehouse, at which time several DEA agents unloaded a total of 21 bundles of marijuana.
The undercover agent then returned to the same parking lot with the empty Ford F-250. When he did, he came upon a black Chevrolet Tahoe driven by another co-defendant, Juan Carlos Gonzalez-Vargas. De Dios Cardenas then got into the Ford F-250 passenger seat with the undercover agent and directed him to a movie theater a short distance away, where the second load vehicle was located. There, De Dios Cardenas pointed out a parked red Ford Explorer in the parking lot which contained the second part of the load of marijuana delivery that Rodriguez had arranged.
DEA Agents weighed and tested the bundles and determined the total weight to be 432.6 kilograms.
At the time of his guilty plea, Rodriguez admitted he had made telephone calls arranging for the delivery of the marijuana.
During the hearing today, Judge Marmolejo Garcia determined Rodriguez was a manager or supervisor of this July 2010 load and was held accountable in relevant conduct for three other loads of marijuana totaling more than 5,500 kilograms from March through June 2008.Rodriguez was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future. De Dios Cardenas and Gonzalez-Vargas have each also entered pleas and were sentenced to 60 and 63 months, respectively.
The case was investigated by the DEA and prosecuted by Assistant United States Attorney Roberto F. Ramirez.
Justice Department Transfers West Dallas Properties to Dallas Area Habitat for Humanity for Demolition and DevelopmentRead the Press Release
Properties Were Forfeited Following Successful Prosecution of the Gator Boyz Drug Trafficking and Criminal Street Gang
DALLAS — U.S. Attorney Sarah R. Saldaña and U.S. Marshal Randy Ely, of the Northern District of Texas, hosted an event this morning to transfer ownership, under a Justice Department program entitled, “Operation Goodwill,” of four forfeited properties on Life Avenue in West Dallas to the Dallas Area Habitat for Humanity for demolition and development. The properties were forfeited to the government as a result of the successful investigation, by the Dallas Police Department’s Gang Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), of the violent drug trafficking and criminal street gang, known as the Gator Boyz, who bought and used these properties to traffic their drugs.
U.S. Attorney Saldaña and Marshal Ely were joined by Special Agent in Charge Robert Champion, of the Dallas ATF, and Dallas Police Chief David Brown in presenting a ceremonial deed of transfer to Mr. David W. McKeever, Jr., the Chief Financial Officer of Dallas Area Habitat for Humanity; Mr. Mike Rawlings, Dallas Mayor and Mr. Randy Skinner, Executive Director of Strategic Justice Initiatives.
Marshal Ely advised, “The United States Marshals Service is proud to partner with those in our community seeking to revitalize neighborhoods that have been affected by gang and drug-related crime. Through programs like Operation Goodwill, we are able to take the ill-gotten gains from this criminal activity and redirect them toward legitimate needs in our communities.”
“From the very beginning of this investigation, it was clear that we wanted to not only take these criminals, who were holding this neighborhood hostage, off the street, but take back this neighborhood for its residents so they could once again feel safe and secure,” said U.S. Attorney Saldaña. “I commend the Dallas Police Department’s Gang Unit and ATF for their combined investigative efforts and all of those who worked tirelessly to see the properties transferred to Habitat for redevelopment.”
“At Dallas Habitat, one of our biggest goals is to revitalize, reclaim and reinvent entire neighborhoods, and that’s exactly what we are doing by getting rid of these properties,” said Mr. McKeever. “This neighborhood simply cannot move forward and improve until these out of place, run down drug houses are gone.”
The Gator Boyz, which was made up of members of both the Bloods and Crips, used drug proceeds to purchase houses, including these four properties on Life Avenue. This gang, not only dealt drugs from these properties, but further terrorized the neighborhood by walking an alligator on a leash down the street. Thanks to the tremendous efforts of the Dallas Police Department’s Gang Unit and ATF, approximately 304 grams of crack cocaine, 440 grams of marijuana and dozens of firearms were seized. In addition, approximately 20 gang members were convicted, including the gang’s leaders, brothers Patrick and Tyrone Weatherall, who are now serving 20 and 30-year federal prison sentences.
Dallas Habitat recognizes its longtime partner, Republic Title, for their research and time commitment in making these property transfers possible.
Since 1986, Dallas Habitat has served more than 1,200 low-income families, in more than 25 neighborhoods, using affordable homeownership as an anchor for hope, change and stabilization. Dallas Habitat believes that hard-working individuals and families be provided the opportunity to live in thriving neighborhoods where hopes and dreams are realized. For more information on Dallas Area Habitat for Humanity visit http://www.dallasareahabitat.org.
Justice Department Issues Business Review Letter<br /> to Intellectual Property Exchange InternationalRead the Press Release
WASHINGTON – The Department of Justice today declined to state its enforcement intentions regarding the implementation of a proposal submitted by IPXI Holdings LLC and its wholly-owned subsidiary Intellectual Property Exchange International Inc. (IPXI) to develop an exchange for the trading of unit license rights (ULRs) to sets of patents. The department said that although IPXI’s proposed exchange potentially could benefit the intellectual property (IP) marketplace and encourage innovation through increased licensing efficiency, sublicense transferability and greater transparency, it also potentially raises competitive concerns. Due to the inherent uncertainties and potential competitive concerns associated with IPXI’s novel business model, the department declined to state its enforcement intentions.
The department’s position was stated in a business review letter to counsel for IPXI from Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division.IPXI proposes to create a proprietary market for patent licenses. To do so, the company intends to obtain exclusive patent licenses that it will then sublicense through the sale of tradable instruments called ULRs, which are standardized licenses for defined sets of patents and uses under terms and conditions set jointly with patent holders. As part of the process, IPXI will review the patent rights at issue by examining validity, current infringement and other issues, and determine market interest to license those patents.
IPXI may become the exclusive licensor of patents or patent bundles that might otherwise compete. IPXI has proposed certain procedures that might mitigate the likelihood that anticompetitive effects will materialize. However, because IPXI cannot predict in advance the patents or markets that might be at issue, the department is unable to engage in the fact-intensive analysis necessary to assess the likely competitive effects of the proposal. In addition, given the novelty of IPXI’s proposal, it is possible that other potential competitive concerns may later emerge once IPXI’s platform is operational.
Under the department’s business review procedure, an organization may submit a proposed action to the Antitrust Division and receive a statement as to whether the division currently intends to challenge the action under the antitrust laws based on the information provided. The department reserves the right to challenge the proposed action under the antitrust laws if it produces anticompetitive effects.
A file containing the business review request and the department’s response may be examined in the Antitrust Documents Group of the Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 1010, Washington, D.C. 20530. After a 30-day waiting period, the documents supporting the business review will be added to the file, unless a basis for their exclusion for reasons of confidentiality has been established under the business review procedure.
Hartford Man Involved in Crack Distribution Ring Sentenced to More Than Seven Years in Federal PrisonRead the Press Release
March 26, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that ERIC GOMES, also known as “Goober Dust,” 46, of Hartford, was sentenced today by Chief United States District Judge Alvin W. Thompson in Hartford to 92 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine in Hartford.
This matter stems from “Operation Vinefield,” a joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force targeting narcotics trafficking and gang violence in Hartford’s North End. As a result of the nine-month investigation, which included court-authorized wiretaps and controlled purchases of narcotics, 38 individuals were charged with various offenses related to the distribution of crack cocaine and the unlawful possession and dealing of firearms in and around Hartford.
According to court documents and statements made in court, GOMES and others conspired to distribute crack cocaine in Hartford’s lower Vine Street area, as well as in other locations in Hartford and East Hartford.
GOMES’s criminal history includes 14 felony convictions. On November 28, 2012, he pleaded guilty to one count of conspiracy to possess and distribute 28 grams or more of cocaine base (“crack cocaine”).
This matter has been investigated by the FBI’s Northern Connecticut Violent Crimes Task Force, the Connecticut State Police, the Hartford Police Department, and the Connecticut Department of Correction. The case is being prosecuted by Assistant United States Attorney Brian P. Leaming.
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(203) 821-3722 [email protected]Goodwin: “another Pedophile Off the Streets”Read the Press Release
Wyoming County man admits collecting child pornography, pleads guilty to federal crime
CHARLESTON, W.Va. – “We’ve taken another pedophile off the streets,” U.S. Attorney Booth Goodwin announced today, in the wake of a Wyoming County man’s federal guilty plea on child pornography charges. David Walter Martin, Jr., 40, pleaded guilty to possession of child pornography on March 26, 2013, before United States District Judge Irene C. Berger in Beckley. Martin admitted he collected more than 600 pictures and videos of children having sex or performing sexual acts. The child pornography was found on Martin’s computers after he downloaded it from the Internet.
“This kind of crime is utterly revolting,” Goodwin said. “Behind every piece of child pornography traded over the Internet, there is a child somewhere who has been exploited in the most heinous way imaginable. People who download these pictures encourage that exploitation, and I will be relentless in prosecuting them.”
Martin faces up to 10 years in prison and a $250,000 fine when he is sentenced on August 1, 2013.
The Mullens Police Department, the Wyoming County Sheriff’s Department, and the West Virginia State Police Internet Crimes Against Children Task Force conducted the investigation. Assistant United States Attorney Lisa Johnston is in charge of the prosecution.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 http://www.justice.gov/usao/wvs/PSCpage.html. For more information about internet safety education, please visit www.usdoj.gov/psc and follow the link named “Resources.”
Fremont Woman Charged in Million Dollar Fraud SchemeRead the Press Release
SAN JOSE - A San Jose federal grand jury indicted Rosemarie Gan, of Fremont, on March 13, 2013 with five counts of wire fraud, United States Attorney Melinda Haag announced.
According to the indictment, Gan, 49, is alleged to have stolen over $1,000,000 from various investors who believed they were investing in her company, Argee’s Travel and Gifts. Investors into Argee’s Travel and Gifts expected their investments to fund the purchase of airplane tickets, and, thereafter, entitle them to commission payments following the sale of these airplane tickets. Instead, Gan allegedly stole investors’ funds and used them to pay delinquent investor commission payments and to pay for her personal living expenses.
Yesterday, Gan made her initial appearance in federal court in San Jose before Magistrate Judge Howard Lloyd. Gan was detained pending a detention hearing. Gan’s detention hearing is scheduled for 10:30 AM on March 28, 2013 before Magistrate Judge Paul Grewal.
The maximum statutory penalty for each count of wire fraud, in violation of Title 18, United States Code, Section 1343, is 20 years’ imprisonment and a fine of $250,000 or twice the gross gain or gross loss from the offense, plus restitution. However, any sentence following conviction would be imposed by the court after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Jeff Schenk is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Kamille Singh. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Gan must be presumed innocent unless and until proven guilty.
Forty-Two Indicted on Charges Relating to Manufacture and Distribution of Methamphetamine in Anderson CountyRead the Press Release
KNOXVILLE, Tenn. – On Mar. 19, 2013, 42 individuals, many of whom reside in Anderson County, were indicted by a federal grand jury for various charges relating to the manufacture and distribution of methamphetamine.
In addition to manufacturing and distributing methamphetamine, the charges also include: conspiracy to manufacture and distribute methamphetamine; possessing equipment, chemicals, products and materials which may be used to manufacture methamphetamine, knowing that the equipment, chemicals, products and materials would be used to manufacture methamphetamine; maintaining residences, one of which was less than 1000 feet away from an elementary school, for the purpose of manufacturing methamphetamine; and federal firearms offenses, including two for using firearms in furtherance of a drug trafficking crime and one for being a felon in possession of a firearm.
If convicted, the conspiracy charge, for which all are charged in the indictment, is punishable by no less than 10 years and up to life in prison, a fine of up to $10 million, and a term of supervised release of no less than five years.
Those indicted include: 1. Lawrence Wilbur Scriver, a.k.a. Stoney, 45, of Lake City; 2. Stephen Michael Conner, 46, of Knoxville; 3. Christopher Ray Farmer, 51, Clinton; 4. Thomas Gene Wright, a.k.a. Tommy Wright, 40, of Lake City; 5. Shaun Jeffery Williams, a.k.a. Cowboy, 26, of Heiskell; 6. Crystal Gail Barnes, a.k.a. Crystal Plemons, 36, of Powell; 7. Layla Leigh Bean, 32, of Powell; 8. Jeffrey Scott Braden, 36, of Lake City; 9. Lisa Charlene Bullock, a.k.a. Lisa Taylor Bullock, 36, of Powell; 10. Kevin Jason Ingram, 41, of Clinton; 11. Derrick Ray Farmer, 33, of Clinton; 12. Ron Walter Austin, 36, of Andersonville; 13. Brandy Danielle Braden, 30, of Lake City; 14. Cassaundria Nichole Sweat, a.k.a. Cassaundra Sweat, 27, of Clinton; 15. Ronnie Gene Murphy, 41, of Knoxville; 16. James Edward Bean, II, 32, of Oliver Springs; 17. Marty Lynn Ivy, 37, of Heiskell; 18. Shinna Marie Rutherford, 33, of Caryville; 19. Kimberly Frances Baker, 24, of Maryville; 20. Aaron James Burress, 32, of Clinton; 21. Junior Lee Phillips, 58, of Clinton; 22. Shannon Marie Ruffner, 28, of Lake City; 23. Aaron Wayne Snelson, 30, of Clinton; 24. Sheena Jean Snow, 26, of Powell; 25. Timothy Scott Stewart, a.k.a. Bodine, 41, of Powell; 26. Kasey Dawn Miller, 33, of Lake City; 27. Breanne Angela Leighton, a.k.a. Bree, 22, of Lake City; 28. Gregory Jason McCollum, 37, of Harriman; 29. Allison Nicole Miller, 27, of Clinton; 30. Donny Lee McGhee, 41, of Lake City; 31. Jonathan Richard McQueen, 23, of Gallatin; 32. James Perry Phillips, 33, of Lake City; 33. Joseph Hunter Jacobs, 23, of Clinton; 34. Michael Lee Jackson, 33, Oliver Springs, Tenn.; 35. James Delaney Bazzoon, 33, of Knoxville; 36. Justin Michael Ford, 26, of Lake City; 37. Junelle Elaine Jerrell, a.k.a. Debbie McGee, Debbie Levon McGhee, 60, of Lake City; 38. Stacey Yvette Jett, 44, of Knoxville; 39. Jessica Ruth Davis, 28, of Knoxville; 40. Brandy Nicole Grahl, 29, of Heiskell; 41. Walter James Lee Griffith, 30, of Powell; and 42. Lindsey Shawntae Bailey, 25, of Washburn.
The investigation leading to this indictment was a joint effort between the Drug Enforcement Administration, Tennessee Bureau Investigation, Tennessee Methamphetamine and Pharmaceutical Drug Task Force, Anderson County Sheriff’s Office, Knox County Sheriff’s Office, Knoxville Police Department, Oak Ridge Police Department, the Seventh Judicial Crime Task Force, and the Clinton Police Department.
This indictment is part of “Operation Meth-odical Destruction,” which is an operation designed to address methamphetamine related crime in Anderson and Knox counties, spearheaded by the dedicated local and state law enforcement agencies in these counties.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
(Download Indictment)
Former Toledo Doctor Sentenced to Five Years in Prison for Illegally Dispensing OxycodoneRead the Press Release
A former Toledo medical doctor was sentenced to five years in prison after previously pleading guilty to crimes related to the dispensation of 1,300 pills of Oxycodone and fraudulently billing Medicaid for more than $78,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Darrell A. Hall, age 54, previously pleaded guilty to conspiracy to distribute a controlled substance, health care fraud and a tax count.
“This sentence should send a message to any doctor who would use their prescription pad as a means to run a pill mill,” Dettelbach said.
“This case is a clear example of a doctor putting greed above quality care for his patients," said Ohio Attorney General Mike DeWine. "This joint state and federal investigation found that this doctor improperly prescribed the drug Oxycodone, and he also defrauded the Medicaid program by claiming he provided more services than he actually did."
Hall was licensed to practice medicine and operated a practice under the name “EDM Health Services, LLC.” He was also a registered provider to Ohio Medicaid, which provides free health benefits to qualified low-income Ohio residents, according to court records.
Hall conspired with others between August 2008 through May 2009 to distribute 1,300 pills of 80 milligrams of Oxycodone for no legitimate medical purpose, according to court records.
He also fraudulently billed Ohio Medicaid in the amount of $78,113.73 between January 2007 and December 2009, according to court records.
He also failed to pay $97,384.88 in taxes that he owed to the Internal Revenue Service owed on behalf of EDM Health Services, LLC, between 2007 and 2010, according to court records.
The health care fraud charge was investigated by Ohio Attorney General Mike DeWine’s Health Care Fraud Unit, while the other charges were investigated by the Drug Enforcement Administration, Detroit, Michigan, and the Internal Revenue Service, Toledo, Ohio. The case is being handled by Assistant United States Attorneys Joseph R. Wilson and Thomas P. Weldon.
Former Pontiac City Council Member Pleads Guilty to Accepting BribesRead the Press Release
A former Pontiac City councilman pleaded guilty today in federal court in Detroit to accepting bribes, United States Attorney Barbara L. McQuade announced.
United States Attorney McQuade was joined in the announcement by Robert D. Foley, III, Special Agent in Charge of the Detroit Division of the Federal Bureau of Investigation.
Pleading guilty before U.S. District Court Judge Bernard A. Friedman was Everett Seay, 61, of Pontiac, Michigan.
According to court documents, beginning in May 2008, Everett Seay met repeatedly with a "J.B.," a person who purported to be a drug dealer from Chicago, who was seeking the assistance of members of the Pontiac City Council to obtain a "regulated use" ordinance to open a business to buy and sell gold for the purpose of laundering drug proceeds. Unknown to Seay, “J.B.” was actually an FBI agent acting in an undercover capacity. During several meetings, Seay solicited and accepted bribe payments from J.B. Between July and December, 2008, Seay received $10,800 in bribe payments from “J.B.”
United States Attorney Barbara L. McQuade said, “Public officials who accept bribes do not belong in office. We hope that our efforts to prosecute corrupt public officials will cause deter candidates from seeking office for personal gain.”
Special Agent in Charge Robert D. Foley stated, “Public officials who abuse their power to enrich themselves rather than serving the citizens will be brought to justice. The FBI is committed to stopping those who betray public trust and rob taxpayers of honest government."
The criminal charges against Everett Seay carry a statutory maximum penalty of ten years in prison and a fine of up to $250,000. Sentencing has been set for June 26, 2013.
This case was investigated by agents of the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Sheldon Light.
Former Pennsylvania Charter School Operator Charged with Federal Income Tax FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury in Scranton has handed up a two count Indictment today charging Dennis Bloom, age 58, of Mount Pocono, Pennsylvania, with tax fraud. Specifically, Bloom is charged with one count of tax evasion and one count of filing a false tax return as a result of his alleged failure to include a substantial amount of income in his 2006 federal income tax return. Bloom is the former chief executive officer of the Pocono Mountain Charter School and Pastor of Shawnee Tabernacle Church, both in Mount Pocono.
According to United States Attorney Peter J. Smith, the charges stem from an investigation initiated by the Internal Revenue Service-Criminal Investigations and the U.S. Department of Education, Office of Inspector General. Prosecution is assigned to Assistant United States Attorney Lorna N. Graham.
“The Role of IRS-Criminal Investigation becomes more important in embezzlement and fraud cases due to the complex financial transactions that can take time to unravel,” said Akeia Conner, Special Agent in Charge of the IRS-Criminal Investigation, Philadelphia Field Office. “As we often see, the victims are not only taxpayers but also the individuals and entities who suffer the financial harm. Be assured that we are serious about investigating these crimes and we will vigorously pursue criminals who steal from the American taxpayer."
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is eight years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former Charleston-based Chase Bank Executive Admits to Major Embezzlement SchemeRead the Press Release
McCoy stole more than a half-million dollars from Chase; created unauthorized cashier’s checks to purchase a Cadillac SUV and a ’68 Chevy Camaro
CHARLESTON, W.Va. –A former Charleston-based J.P. Morgan Chase Bank (“Chase Bank”) executive who admitted embezzling more than a half-million dollars from his employer pleaded guilty today in federal court, announced United States Attorney Booth Goodwin. Mark Alan McCoy, 46, of Charleston, W.Va., pleaded guilty to embezzlement by a bank officer. McCoy was employed as the vice president of private client banking services at the bank’s Charleston branch from September 2008 until June 2012.
“Bank employees are given a tremendous position of trust,” said U.S. Attorney Booth Goodwin. “Customers trust bankers with some of life’s most important matters: their nest eggs, the money they save to send their kids to college, and the money they live on day to day.”
“To abuse that trust is unconscionable,” Goodwin continued. “It’s a crime not only against the bank, but against everyone who counted on this defendant to keep their money safe and sound. I hope this prosecution sends a strong message that this kind of crime will not be tolerated.”
McCoy admitted that from November 30, 2009, and continuing until April 19, 2012, during his employment at Chase Bank, he stole monies belonging to Chase Bank, from approximately nine separate personal and corporate bank clients’ accounts. McCoy admitted that he created cashier’s checks for himself or would use the proceeds from the original cashier’s checks to create additional unauthorized checks. McCoy further admitted that on January 19, 2011, he created an unauthorized cashier’s check from a client’s corporate bank account for $59,000, with the check made payable to Moses automotive dealership. McCoy admitted that he took the cashier’s check and purchased a Cadillac Escalade with the proceeds. Similarly, on October 19, 2011, McCoy created an unauthorized cashier’s check from a client account for $22,000. McCoy caused that check to be deposited into another client’s account for payment for a 1968 Chevrolet Camaro.
In total, McCoy admitted that he took approximately $532,395.59 of monies from Chase Bank. The actual loss to Chase Bank, after accounting for funds that the defendant deposited into client accounts and other funds that the bank was able to recover, is $447,784.45.
McCoy faces up to 30 years in prison and a fine of up to $1 million when he is sentenced on July 17, 2013 by United States District Judge Irene Berger.
The investigation was conducted by the U.S. Secret Service. Assistant United States Attorney Meredith George Thomas is in charge of the prosecution.
Former Bookstore Manager Pleads Guilty to Stealing $1.1 Million from Missouri State UniversityRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former manager of the Missouri State University bookstore pleaded guilty in federal court today to embezzling more than $1.1 million by pocketing the money from the school’s textbook buyback program.
“MSU’s former bookstore manager engaged in a 10-year-long scheme of theft and deceit,” Dickinson said. “He repeatedly abused his position to exploit weaknesses in the university’s accounting system and steal more than $1.1 million. MSU, to its credit, has corrected those weaknesses and fully cooperated with our investigation.”
Mark Brixey, 48, of Ozark, Mo., waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with wire fraud, money laundering and filing a false tax return.
Brixey, the manager of the MSU bookstore from 1998 to August 2012, admitted that he embezzled $1,163,237 from the student textbook buy-back program. Brixey’s 10-year fraud scheme began in 2003 with the theft of nearly $29,000 and escalated each year, with more than $190,000 stolen during each of the last two full years of the scheme in 2010 and 2011. Brixey embezzled another $20,580 before he resigned in 2012.
Textbook Buyback Scheme
As manager of the MSU bookstore, Brixey handled all contacts related to the textbook buy-back program. At the close of each semester, MSU students had the opportunity to sell their used textbooks to Follett Educational Services, which contracted with MSU to administer the book buy-back program. Follett operated 10 textbook buy-back stations on the MSU campus during finals week in December and May of each year.
On the last day of each buy-back period, a Follett representative prepared a report that detailed how many textbooks were purchased and at what price. A Follett representative also calculated the commissions to be paid to MSU for allowing Follett to conduct the textbook buy-back program at the university. A Follett representative gave a sight draft/check to Brixey for payment of the commission to MSU (beginning in 2011, the Follett representative paid the commission in cash directly to Brixey).
Follett also purchased textbooks that were no longer used by MSU professors directly from the MSU bookstore. Similar to the textbook buy-back program, a Follett representative calculated the total amount to be paid to MSU for these books and gave a sight draft/check to Brixey. The bookstore also disposed of surplus textbooks by reselling them to textbook wholesalers, such as MBS Textbook Exchange, Inc., and Nebraska Book Company.
When Brixey received sight drafts/checks payable to MSU for these buy-back programs, he took those checks to the MSU bursar’s office. Brixey falsely claimed that the sight drafts/checks were needed to pay students for books purchased in the buy-back program. The bursar’s office relied upon Brixey’s misrepresentations and provided cash to Brixey.
Brixey did not record the cash received in the MSU Bookstore accounting system, but instead used the cash for his personal benefit.Count One: Wire Fraud
Brixey admitted that he executed the scheme to cause electronic transmissions related to the processing of sight drafts (in connection with the commissions and the purchase of textbooks).
Count Two: Money Laundering
Brixey admitted that he concealed his fraud scheme by disguising the proceeds through multiple financial transactions. Brixey routinely deposited the proceeds of his fraud scheme into Educational Credit Union accounts then transferred cash from those accounts to purchase and add value to certificates of deposit. Between Jan. 11, 2008, and July 16, 2012, Brixey made or caused to be made 55 transfers totaling $121,000 from Education Credit Union deposit accounts to Educational Credit Union certificates of deposit.
Count Three: Filing a False Tax Return
Brixey admitted that on April 15, 2011, he filed a tax return that failed to report approximately $194,521 in income received through the fraud scheme in 2010. Brixey also filed a tax return for 2011 that failed to report $192,202 of income from his fraud scheme and a tax return for 2009 that failed to report $166,354 of income from his fraud scheme. Between 2009 and 2011, Brixey failed to report a total of $553,077 of income from his fraud scheme, resulting in a tax loss to the government of approximately $166,247 for those three years.
Penalties
Under federal statutes, Brixey is subject to a sentence of up to 43 years in federal prison without parole, plus a fine and an order of restitution. Brixey must forfeit to the government $1,163,237, which represents the proceeds of the wire fraud scheme, and a number of certificates of deposit that were purchased with proceeds from the fraud scheme. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the U.S. Secret Service, IRS-Criminal Investigation, the Springfield, Mo., Police Department and the Greene County, Mo., Prosecuting Attorney.
Fen-Phen Fraud Doctor Sentenced to 72 Months in PrisonRead the Press Release
PHILADELPHIA - Dr. Abdur Razzak Tai, 79, of Kissimmee, Florida was sentenced today to six years in prison for a fraud scheme involving a trust fund set up to compensate victims of the Fen-Phen diet drug. Tai, who practiced cardiology under the name A. Razzak Tai, M.D., and through Tri-County Doctors, Inc. and Medical Legal Consultants, Inc., was convicted in September of 2011 on six counts of mail fraud and seven counts of wire fraud.
American Home Products Corporation, later known as Wyeth, entered into a class action settlement, which established a Trust to pay benefits to persons injured by Fen-Phen with money contributed by Wyeth. Between 1997 and 2009, Tai devised a scheme to defraud the Seventh Amendment, the Trust and Wyeth, and to obtain money and property from them by means of false and fraudulent representations. He reviewed the echocardiograms of more than 1,100 patients who filed claims with the American Home Product Settlement Trust in Philadelphia and falsely certified that the patients’ tests showed that they had sustained heart damage. In reality, many of those claimants had not been harmed.
For at least one lawyer, Dr. Tai was paid a set fee of $100 for each echocardiogram that he read. In addition, Tai was to be compensated $1,500 for each claimant who qualified for benefits when that patient’s claim was paid. Dr. Tai wrote reports and signed certifications attesting that claimants had suffered heart damage on some occasions when he knew that the tests showed that they had not and, on other occasions, when he knew that he had not personally reviewed the test results to determine whether they had suffered heart damage. By misreporting measurements from the echocardiogram, the severity of a claimant’s medical condition could be exaggerated, thereby improperly qualifying the claimant for hundreds of thousands of dollars more in benefits. Dr. Tai certified that some patients qualified for the increased settlement benefits when he knew they did not.
At trial, Dr. Tai testified that his medical reports had been forged by the mass-tort lawyer who had hired him and who had paid him on a contingency fee basis. The jury returned a verdict of guilty on all 13 counts after deliberating for less than two hours.
In addition to the prison term, U.S. District Court Judge Juan R. Sanchez ordered Tai to pay restitution in the amount of $4.5 million, a $15,000 fine, a special assessment of $1,300, and ordered three years of supervised release. Tai was immediately remanded.The case was investigated by the FBI and U.S. Postal Inspection Service and was prosecuted by Assistant United States Attorney Paul Shapiro.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Federal Grand Jury Indicts Former Fannie Mae Employee for Allegedly Taking Kickbacks from Arizona Real Estate BrokerRead the Press Release
LOS ANGELES – A former sales associate with the Federal National Mortgage Association (Fannie Mae) was named today in a federal grand jury indictment that accuses him of taking kickbacks from a real estate broker in exchange for providing him with foreclosed properties to sell on behalf of the mortgage agency.
Armando Granillo, 44, of Huntington Beach, California was charged today with three counts of “honest services” wire fraud for soliciting kickbacks while working for Fannie Mae.
Granillo was arrested in this case on the morning of March 5, 2013, after he allegedly accepted an $11,200 payment from the real estate broker, who at the time was working with federal authorities. Granillo was freed on a $5,000 bond and is expected to be arraigned next month in United States District Court in Los Angeles.
Granillo, who worked in the Irvine Fannie Mae office as a Real Estate Owned Foreclosure Specialist, reviewed applications submitted by real estate brokers who wanted to list Fannie Mae foreclosure properties. Granillo had the authority to approve sale offers presented by the brokers. In late 2012, Granillo asked a real estate broker in Tucson to pay a percentage of the commissions the broker earned for selling Fannie Mae foreclosure properties. The broker brought the matter to the attention of federal law enforcement officials, and he began assisting in the investigation.
In subsequent conversations between Granillo and the broker, Granillo demanded 20 percent of the broker’s commissions.
In February 2012, Granillo traveled from Orange County to the Phoenix area, where he met with the broker. During the recorded meeting, Granillo stated that the kickback arrangement was a “natural part of business.” Granillo then arranged to receive the $11,200 payment from the broker.
Each wire fraud count alleged in the indictment carries a statutory maximum penalty of 20 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Fannie Mae is currently under the conservatorship of the Federal Housing Finance Agency. The investigation into Granillo was conducted by the Federal Housing Finance Agency’s Office of Inspector General.
Release No. 13-044
Fafane Daniel Pleads Guilty to Crime Aboard AircraftRead the Press Release
FAFANE DANIEL, age 32, of Fort Lauderdale, Florida, pled guilty before the U. S. District Court Judge Eldon E. Fallon today to violating Title 49, United States Code, Section 46506, assault on an aircraft in flight within the special aircraft jurisdiction of the United States, announced U.S. Attorney Dana J. Boente.
According to court documents, DANIEL was a ticketed passenger traveling with her juvenile child on a Southwest Airlines flight originating in Fort Lauderdale, Florida and terminating in Las Vegas, Nevada. DANIEL verbally and physically assaulted the passenger seated beside her because she mistakenly believed that passenger injured DANIEL’s child. Due to this incident, the flight was diverted to New Orleans, Louisiana where DANIEL was taken into custody.
DANIEL will be sentenced on July 11, 2013. She faces a maximum term of 6 months imprisonment.
This case was investigated by Special Agents of the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Gregory M. Kennedy.
(Download Factual Basis )