Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 7 February 2013
Coushatta Tribe Member Sentenced in Federal Court for Assault ChargeRead the Press Release
LAKE CHARLES, La.: United States Attorney Stephanie A. Finley announced today that Coushatta Tribe of Louisiana member Nicholas Tyler Poncho, 21, of Elton, La., was sentenced Thursday before U.S. District Court Judge Patricia Minaldi to 33 months in prison followed by three years of supervised release and a $1,000 fine for assault.
Poncho pleaded guilty October 4, 2012, to one count of assault with a dangerous weapon after a federal grand jury indicted him in May 2012 for assault with a dangerous weapon and assault resulting in serious bodily injury. According to court documents, Poncho admitted to intentionally striking his father Jan. 22, 2012, while on the Coushatta Tribal Reservation with a 1.5 liter wine bottle with the intent to do bodily harm. Poncho also admitted that the wine bottle was an instrument capable of inflicting grave bodily
harm or death.Jurisdiction in Indian Country is based upon the unique sovereign relationship between the federal government and Indian tribes. Congress has criminalized certain acts that take place in Indian Country. The U.S. Attorney’s Office prosecutes all felony and misdemeanor cases, arising in Indian Country, that are within the jurisdiction of this office. The U.S. Attorney’s Office prosecutes cases, arising in Indian Country, involving felonies where either the defendant or the victim is an Indian or both the defendant and the victim are Indian. The U.S. Attorney’s Office also prosecutes cases involving misdemeanors
where the defendant is a non-Indian.“Safeguarding the lives of those on reservations is of upmost concern to our office,” Finley said. “Violence on the lands of native peoples will not be tolerated and offenders will be prosecuted.”
The Coushatta Tribal Police Department and the FBI-Lake Charles Resident Agency investigated the case. Assistant U.S. Attorney Daniel J. McCoy prosecuted the case.
Convicted Sex Offender from Montgomery County Sentenced to Twenty-Five Months in Federal Prison for Second Federal Failure to Register ConvictionRead the Press Release
Montgomery, Alabama - Kevin H. Chambliss, of Montgomery, Alabama, was sentenced to twenty-five months in federal prison for failing to register as a sex offender, United States Attorney George L. Beck, Jr., announced today.
A federal grand jury indicted Chambliss in July 2012, for one count of failing to register and update a registration as required by the Sex Offender Registration and Notification Act after he traveled in interstate commerce in violation of federal law. According to court documents, Chambliss was convicted of one count of unlawful sexual activity with a minor in 2003 in Florida. Due to this conviction, Chambliss is required to register as a sex offender. During Chambliss’s guilty plea hearing in October 2012, he admitted that he was registered as a sex offender in Alabama and relocated to Florida. Chambliss further admitted that, after relocating to Florida, he knowingly failed to update his sex offender registration in Alabama.
This failure to register conviction marks Chambliss’s second federal conviction for failing to register. Court records indicate that Chambliss was convicted for the federal felony of failing to register in 2009. That conviction was based upon Chambliss relocating from Florida to Alabama and failing to register in Alabama. Chambliss was sentenced to ten (10) months in federal prison and five years of supervised release. While on supervised release, in 2012, Chambliss violated the terms of his supervision and was sentenced to eight (8) months in federal prison.
United States District Judge Myron H. Thompson sentenced Chambliss to twenty-five (25) months in federal prison to be followed by five years of supervised release. This twenty-five months sentence was ordered to run consecutive to the eight months sentence discussed above. Chambliss remains in the custody of the United States Marshals Service pending placement by the Bureau of Prisons.
This case was investigated jointly by the United States Marshals Service and United States Probation Office. Assistant United States Attorney Jerusha T. Adams prosecuted the case..
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Colleyville, Texas, Business Owner Convicted at Trial on Concealment of Assets and Tax Evasion ChargesRead the Press Release
FORT WORTH, Texas — A federal jury in Fort Worth, Texas, has convicted Larry Lake on one count of concealment of assets (bankruptcy fraud) and three counts of tax evasion, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. The trial began Monday morning before U.S. District Judge John McBryde.
According to the public court record, Lake is a resident of Colleyville, Texas, and owns and operates several businesses including VIP Finance of Texas, an auto title loan business with branches throughout the Dallas-Fort Worth area; Cash Auto Sales, which handles the auto club memberships for VIP Finance; and is a part owner of Grapevine Drug Mart, a pharmacy in Grapevine, Texas.
Lake faces a maximum statutory sentence of five years in federal prison and a $250,000 fine for each of the four counts in which the jury found him guilty. A sentencing date was not set.
The government presented evidence at trial that the day before Lake filed for bankruptcy in November 2004, he knowingly and fraudulently transferred and concealed more than $3 million held in an E*TRADE account and a Compass Bank account. The funds were subsequently transferred by Lake through a series of bank deposits, wire transfers and cashier’s checks. In addition, Lake utilized a “shell” company to assist in concealing the assets.
Additionally, according to evidence presented at trial, Lake devised a scheme to evade the assessment of his personal income taxes by under-reporting income on his and his spouse’s joint tax returns for the tax years 2006 through 2008. The unreported income was derived from Lake’s businesses, VIP and Grapevine Drug Mart.
Further evidence presented by the government at trial showed that from August 2006 through November 2009, Lake and his spouse agreed to structure more than 1,100 currency deposits, into at least 13 different bank accounts, knowing that structuring was illegal. These accounts were spread among several financial institutions, and the total amount structured during this time period was in excess of $9.3 million. Lake and his spouse created at least two “shell” companies, which were used to open some of the 13 bank accounts used in the structuring scheme.
Lake, according to evidence presented at trial, failed to disclose the structured funds, and the existence of the accounts containing the structured funds, to his income tax return preparer. In addition, Lake failed to report income he received from Grapevine Drug Mart, having told his return preparer that he (Lake) had sold the business during the 2003 calendar year. By willfully withholding this information from his return preparer, the IRS suffered a total tax loss of $4,838,032.
The case was investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Brian Poe and Tax Division Trial Attorney Robert A. Kemins are in charge of the prosecution.
Charges Allege $311 Million Global Hedge Fund Fraud SchemeRead the Press Release
PHILADELPHIA - An indictment was filed and an information unsealed today charging two business associates in the hedge fund management industry with defrauding institutional investors and causing collective losses of more than $311 million, announced United States Attorney Zane David Memeger. Helmut Kiener, 53, of Aschaffenburg, Germany, is charged by indictment with four counts of wire fraud, two counts of bank fraud, and three counts of money laundering, based on allegations that he devised and directed various investment fraud schemes in concert with his partner John C. Tausche. Tausche, 61, of Blowing Rock, North Carolina, is charged by information with one count of bank fraud and one count of money laundering, based on his alleged involvement in the scheme.
Kiener, a German national, controlled several hedge funds - including K1 Global Limited and K1 Invest - which he marketed to international investors. Tausche, a U.S. citizen, controlled several offshore hedge funds collectively called the Oceanus Funds. According to the charges, between March 2005 and December 2008, Kiener allegedly devised a scheme to defraud Bear Stearns entities by representing to Bear Stearns that, under Kiener’s management, Bear Stearns investment funds would be diversified and independently managed. However, the indictment alleges that Kiener actually funneled Bear Stearns money from K1 through the Oceanus Funds and back to K1, so as to give the false impression that the funds were growing in size and were viable investments. Kiener and Tausche, it is alleged, knowingly and intentionally fostered the false appearance that the K1 Funds were increasing in value, in order to induce Bear Stearns to continue to invest in the K1 Funds. Both defendants allegedly provided false and misleading information to Bear Stearns in response to inquiries regarding the K1 and Oceanus Funds, repeatedly and falsely representing that the funds were diversified and independently managed. The indictment alleges that, as a result of the scheme, Kiener earned sales agent fees all while Bear Stearns invested and lost approximately $82 million.
The information filed against Tausche alleges a similar scheme against Barclays Bank, involving the K1 Funds and the Oceanus Funds. The information alleges that this scheme caused losses to Barclays Bank of $137 million.
It is further alleged that starting in 2007, Barclays Bank, Bear Stearns, and BNP Paribas (“BNPP”) invested with Kiener in two offshore funds named Consistent Return Ltd. and Mezzanine Financing Ltd. Kiener represented that both Consistent Return Ltd. and Mezzanine Financing Ltd. were legitimate investment funds, and the indictment alleges that the three institutional investors together invested more than $100 million in these funds. However, the indictment alleges that Kiener actually directed a third party to create these offshore funds, and that Kiener then used the funds for his own purposes including, but not limited to, the purchase of: oceanfront real estate in Delray Beach, Florida valued at over $21 million; a Bombardier executive jet; a Bell helicopter; luxury cars such as a Bentley, a Mercedes and a Maybach; two luxury watercraft; and over $8 million in upgrades to his real estate.
If convicted of all charges, Kiener faces a maximum possible statutory sentence of 200 years in prison, restitution, and a maximum possible fine of $7.936 million; Tausche faces a maximum possible statutory sentence of 40 years in prison, restitution, and a maximum possible fine of $1.974 million.
The case was investigated by the Foreign Corruption Investigation Group, Homeland Security Investigations - Miami Field Office, the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigations, and the German police force Kriminalpolizeiinspektion Unterfranken, with assistance from Barclays Bank, BNP Paribas, and Bear Stearns/J.P. Morgan Chase Bank. The Office of International Affairs in the Justice Department’s Criminal Division also provided valuable assistance in this matter. It is being prosecuted by Assistant United States Attorneys Jennifer Arbittier Williams and Suzanne Ercole.
View: Indictment | Information
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Carl Junction Man Pleads Guilty to Child Porn, Faces 25 Years in PrisonRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Carl Junction, Mo., man pleaded guilty in federal court today to receiving child pornography over the Internet.
James Lee Hagerman, 50, of Carl Junction, 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 two counts of receiving child pornography.
An officer with the Southwest Missouri Cybercrimes Task Force was conducting an online investigation into the sharing of child pornography on April 24, 2012, when he identified Hagerman’s computer as sharing over 100 files of child pornography through a peer-to-peer file-sharing program. The officer downloaded three of the files and determined that they contained depictions of children as young as two to four years of age engaged in sexually explicit conduct.
Law enforcement officers executed a search warrant at Hagerman’s apartment and seized his computer. Hagerman told officers that he had approximately 1,000 child pornography videos stored on his computer.
Under the terms of today’s binding plea agreement, Hagerman will be sentenced to 25 years in federal prison without parole. 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 Assistant U.S. Attorney James J. Kelleher. It was investigated by the FBI and the Southwest Missouri Cybercrimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Cambridge Man Sentenced to Prison for Attempting to Steal 529 Plan College Savings FundsRead the Press Release
BOSTON - A Cambridge man was sentenced today for stealing the identification information of five parents in an attempt to raid the college savings accounts they had created for their children.
Mohammed Gisan, 26, was sentenced by U.S. District Judge George A. O’Toole to six months in prison, followed by two years of supervised release. In May 2012, Gisan pleaded guilty to five counts of identity theft.From October to May 2011, Gisan worked as a temporary employee at Upromise Investments, Inc., a division of Sallie Mae, in Newton. While at Upromise, Gisan had access to the company’s records, and he used that access to obtain and remove personal information about customers who had established college savings accounts, known as 529 plans, for their children. Immediately after Gisan’s assignment at Upromise was terminated, he used the personal information he had obtained to configure five of these accounts for internet access. Gisan intended to then transfer these funds to an online bank account that he would have controlled, but he was prevented from completing his plan due to security and loss prevention measures taken by Upromise and the actions of a vigilant customer.
United States Attorney Carmen M. Ortiz, Steven D. Ricciardi, Special Agent in Charge of the U.S. Secret Service, and Commissioner Robert C. Hass of the Cambridge Police Department made the announcement today. The case was prosecuted by Assistant U.S. Attorney Amy Harman Burkart of Ortiz’s Cybercrime Unit.
Buffalo Woman Sentenced for Obstruction of JusticeRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Evelyn Roberson, 61, of Buffalo, N.Y., who was convicted of obstruction of justice, was sentenced to 10 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorneys Kathleen A. Lynch and Maura K. O'Donnell, who handled the case, stated that the defendant knowingly concealed tangible objects, including a check, a money order, cash and credit, debit and bank cards, with the intent to obstruct and impede a criminal investigation. In connection with an ongoing criminal investigation of the defendant’s son, law enforcement agents learned that Roberson obtained evidentiary items from her son’s house and from his associates. Agents secured a search warrant for the defendant’s residence, seeking those items. When agents attempted to execute the search warrant, the defendant concealed the items in her clothing and also removed items from the house by hiding them on her person.
"As most of the public already knows, it is not just the original crime that can lead to prosecution – it is also the cover-up," said U.S. Attorney Hochul "As we continue to work with the public and law enforcement to rid our communities of crime, let those who knowingly assist criminals now also be on notice that they are not immune from prosecution.”
The sentencing is the culmination of an investigation on the part of Special Agents of the FBI, under the direction of Special Agent in Charge, Christopher M. Piehota, and the United States Secret Service, under the direction of Special Agent in Charge Tracy Gast.
Boyertown Man Charged with Armed Bank RobberyRead the Press Release
Marcus Akiem Ricketts, 35, of Boyertown, Pennsylvania was charged today by
indictment with armed bank robbery and using and carrying a firearm during a crime of violence, announced United States Attorney Zane David Memeger. These charges stem from the July 2, 2012, armed robbery of the Manufacturers and Traders Trust Company (“M&T Bank”), formerly located at 760 North Pottstown Pike, in Exton, Pennsylvania of approximately $27,906.
If convicted, Ricketts faces a 7-year mandatory minimum term of imprisonment, five years of supervised release, a $500,000 fine, and a $200 special assessment.This case was investigated by the Federal Bureau of Investigations, the Uwchlan Township Police Department, the Upper Uwchlan Township Police Department, the West Whiteland Township Police Department, the Chester County Sheriff’s Department, the Chester County Detectives, and the Chester County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Jeffery W. Whitt.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Boulder Man Arrested for Money Laundering Charges in Relation to Distribution of A Controlled SubstanceRead the Press Release
DENVER – Taylor Smith Hills, age 25, of Boulder, Colorado, was arrested last week for drug related money laundering charges, the United States Attorney’s Office, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), IRS-Criminal Investigation, U.S. Postal Inspection Service and the Boulder County Drug Task Force announced. Hills was indicted by a federal grand jury in Denver on January 29, 2013, for money laundering in relation to distribution of a controlled substance, illegal use of the mail, false statement in a loan application and failure to pay taxes. His initial appearance took place the following day in Denver, where he was advised of his rights.
According to the indictment, from March 31, 2011 through May 1, 2012, Hills allegedly engaged in financial transactions, which transactions involved the proceeds of specified unlawful activity, that is, the distribution of controlled substances. The indictment further states that the defendant allegedly conducted financial transactions while knowing that the property involved in each transaction represented the proceeds of some form of unlawful activity.
Furthermore, Hills did knowingly and willfully make a false statement or report for the purpose of influencing the action of JP Morgan Chase, a federally insured financial institution, in connection with a vehicle loan application. Lastly, beginning on or about April 15, 2012, and continuing through on or about January 29, 2013, Hills knowingly and willfully failed to file an income tax return and pay income tax due and owing to the United States for the calendar year 2011.
Upon conviction of the violations alleged in the indictment Hills shall forfeit to the United States, any and all of the defendants’ right, title and interest in all property, real or personal, involved in such offenses, or all property traceable to such property, including but not limited to the following: 2008 Ducati motorcycle, and U.S. currency located in a Roth IRA.
“Thanks to the joint efforts of local, state and federal law enforcement and prosecutorial agencies, a defendant involved in money laundering proceeds from the distribution of a controlled substance has been arrested for his misdeeds,” said U.S. Attorney John Walsh.
“Drug trafficking organizations have to launder large sums of their illicit proceeds, often through financial institutions and other investment vehicles,” said Kumar Kibble, special agent in charge of HSI Denver.
“This investigation is another example of HSI working with our law enforcement partners to disrupt and dismantle these organizations by removing the assets they need to continue dealing in illicit drugs.”
“This is a great example of law enforcement agencies working together. IRS Criminal Investigation’s goal in drug cases is to help put drug dealers in jail and financially disrupt their efforts by seizing the drug proceeds,” said Stephen Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office.“Individuals who use the U.S. Mail to facilitate the transportation of illegal drugs and related proceeds are violating federal law. These are priority investigations for our agency,” said Adam Behnen, Inspector in Charge, U.S. Postal Inspection Service, Denver Division.
“The cases that have resulted from this investigation are based on a joint investigation involving the United States Attorney’s Office, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, IRS-Criminal Investigation, U.S. Postal Inspection Service and the Boulder County Drug Task Force. The investigation demonstrates the effectiveness of federal agencies working in cooperation with local law enforcement. The District Attorney’s Office of the 20th Judicial District and the Boulder County Drug Task Force would like to thank all the federal agencies and agents involved in making this investigation possible,” said Ken Kupfner, Chief Trial Deputy, 20th Judicial District.
Taylor Hills was charged with seventeen counts of money laundering, twelve counts of illegal use of the mail, one count of a false statement in loan application, and one count of failing to file a tax return. If convicted of money laundering, he faces not more than 20 years in federal prison, and a fine of up to $500,000 per count. If convicted of illegal use of the mail, he faces not more than 4 years in federal prison, and a fine of up to $250,000 per count. If convicted of false statement in loan application, he faces not more than 30 years in federal prison, and a fine of up to $1,000,000 per count. If convicted of failing to file a tax return, he faces not more than 1 year in federal prison, and a fine of up to $25,000 per count.
This case was investigated by agents with Homeland Security Investigations, IRS-Criminal Investigation, U.S Postal Inspection Service, officers from the Boulder County Drug Task Force and the Boulder County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Michele Korver.
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
####
Blaine Man Sentenced for the Armed Robbery of A Carver County Convenience StoreRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a 28-year-old Blaine man was sentenced for committing the December 3, 2011, armed robbery of a convenience store in Mayer, Minnesota. United States District Court Judge Patrick J. Schiltz sentenced Demetrius Charles Edward Derden to 170 months in federal prison on one count of interference with commerce by robbery, pursuant to the Hobbs Act. Derden was indicted on January 10, 2012, and pleaded guilty on August 24, 2012.
On December 3, 2011, Derden stole $2,259 from the Mayer Oil Company while brandishing a weapon. Derden demanded money from the store’s backroom safe. When the clerk told him he did not know the combination to the safe, Derden placed the barrel of the gun against the clerk’s neck and threatened him. A struggle ensued, and the clerk suffered injuries. Derden fled the store, but authorities arrested him a few hours later at his residence. They found some of the stolen money inside a stuffed animal. They also learned that the weapon used was a BB gun.
The Hobbs Act, passed by Congress in 1946, allows federal prosecutors to prosecute violent habitual criminals who commit armed robbery in places of business that involve interstate commerce. Federal prosecution of these cases is sometimes beneficial since the penalties are often tougher than under state law. Furthermore, because the federal system has no parole, those who receive federal sentences serve virtually the entire prison term imposed.
This case was the result of an investigation by the Carver County Sheriff’s Office, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Julie E. Allyn.Big Spring, Texas, Man Sentenced to 87 Months in Federal Prison on Cocaine ConvictionRead the Press Release
Law Enforcement Seized Cocaine and More Than $78,000 in Drug Trafficking Proceeds During Execution of Search Warrant
LUBBOCK, Texas — Gabriel Aguilar, 35, of Big Spring, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 87 months in federal prison, following his guilty plea in October 2012 to an Information charging one count of possession with intent to distribute cocaine, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Judge Cummings remanded Aguilar, who had been on bond, to the custody of the U.S. Marshal.
According to documents filed in the case, officers with the Big Spring Police Department executed a search warrant at Aguilar’s residence on December 13, 2011. During the search, Aguilar advised officers that there was approximately 15-19 ounces of cocaine in the house, along with $60,000 in his closet. He stated that he had been selling cocaine for the past year to supplement his salary, but that he was down to his last “bird” or kilogram of cocaine.
In the residence, officers located approximately 2.49 pounds of cocaine in kitchen cabinets and Aguilar’s bedroom closet. A part of that amount was contained in 82 pre-measured, plastic bags that each contained seven grams of cocaine. In addition, officers located drug paraphernalia, such as plastic bags and digital scales, a 9mm semi-automatic pistol and $78,319 in cash that was concealed in clothing in Aguilar’s closet.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Big Spring Police Department. Assistant U.S. Attorney Justin T. Cunningham was in charge of the prosecution.
Benson December Coriolant Sentenced to 40 Years for Sex Trafficking A Child into the New Orleans AreaRead the Press Release
BENSON DECEMBER CORIOLANT, 30, of Orlando, Florida, was sentenced today by United States District Judge Lance M. Africk to 40 years in prison after he was previously convicted by a federal jury of sex trafficking of a child, conspiring with others to sex traffic a child, coercing and enticing an individual to engage in prostitution, and coercing and enticing a minor to engage in illegal sexual activity, announced United States Attorney Dana J. Boente. This is the first human sex trafficking conviction in the Eastern District of Louisiana.
According to evidence introduced at trial, in late 2008, CORIOLANT met R.V., a 14-year-old female. Shortly thereafter, he began a sexual relationship with her. After convincing the minor that their relationship was one of boyfriend/girlfriend, CORIOLANT recruited R.V. to begin working for him as a prostitute in the Orlando area. CORIOLANT posted advertisements on multiple city-specific internet classified ad websites offering prostitution services of the minor. Over the course of the next year, CORIOLANT forced R.V. to engage in dozens of sexual acts in exchange for money throughout the state of Florida. CORIOLANT forced R.V. to turn over the money she earned from prostitution either to him or one of his associates. CORIOLANT also provided R.V. with alcohol and illicit drugs, such as Ecstasy, as a way of numbing her senses and controlling her behavior.
In March 2010, CORIOLANT drove R.V., who was then 15-years-old, to Kenner, Louisiana, to work as a prostitute. CORIOLANT used the New Orleans version of the online classified advertisement website to solicit individuals interested in paying for sex with the minor. CORIOLANT required R.V. to put the money she made from prostitution, thousands of dollars, into a bank account for his benefit. He further forced her to account for all of her expenses, including personal expenses, such as food, in a journal, daily letters, and text messages to him. CORIOLANT also instructed R.V. in what to charge for sex, how to provide him with the profits, how to attract business, how to avoid being apprehended by law enforcement, and how to perform certain sexual acts.
On April 24, 2010, R.V. was discovered by law enforcement authorities and ultimately sent back to Orlando with relatives. Once back in Orlando, CORIOLANT instructed R.V. to continue engaging in prostitution, but to have sex only with regular, familiar clients because of concerns with law enforcement finding her.In May 2010, CORIOLANT sent the minor back to New Orleans a second time to work as a prostitute. CORIOLANT again advertised sex with the minor on the online classified advertisement website. R.V. was arrested several days later.
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.
This case was further brought as part of the Innocence Lost National Initiative, which was aimed at addressing the growing problem of domestic sex trafficking of children in the United States. In the nine years since its inception, the initiative has resulted in the development of 47 dedicated task forces and working groups throughout the U.S. involving federal, state, and local law enforcement agencies working in tandem with U.S. Attorney’s Offices.
This case was investigated by the Federal Bureau of Investigation, New Orleans Division. The Tampa Division of the FBI and the Kenner, Louisiana police department also provided critical investigative assistance. The prosecution of this case was handled by Assistant United States Attorneys Jordan Ginsberg, Juliana Etland, and Sean Toomey.
Babatunde Abiola Sentenced for Identity TheftRead the Press Release
BABATUNDE ABIOLA, age 26, a citizen of Nigeria, was sentenced yesterday by U.S. District Judge Martin L.C. Feldman to approximately seven months imprisonment for identity theft, announced U. S. Attorney Dana J. Boente. In addition to the term of imprisonment, Judge Feldman imposed three years of supervised release following the term of imprisonment, during which time the defendant will be under federal supervision and risks an additional term of imprisonment should he violate any terms of his supervised release
According to court documents, ABIOLA applied for an American Eagle Outfitters credit card via the internet using another person’s name and social security number. This credit card was used to purchase approximately $124 worth of merchandise.
The case was investigated by Special Agents of the U.S. Secret Service and Immigration and Customs Enforcement - Homeland Security Investigations. The case is being prosecuted by Assistant U. S. Attorney Loan “Mimi” Nguyen and Special Assistant U.S. Attorney Robert Weir.
Army Member Stationed at MacDill Pleads Guilty to Production of Child PornographyRead the Press Release
Tampa, FL - United States Attorney Robert E. O'Neill announces that Thomas Meyer (42, Riverview) pleaded guilty today to production of child pornography. Meyer faces a mandatory minimum of 15 years, up to a maximum of 30 years in federal prison.
According to court documents, Meyer is a member of the United States Army and is stationed at MacDill Air Force base. Between October 2011 and January 2012, Meyer used Yahoo! Messenger to have sexually explicit online chats with a female minor in Pennsylvania, and another individual he thought was a 13-year-old female, but who was actually an undercover detective in Kentucky. Per Meyer's request, the minor female from Pennsylvania sent three pornographic photographs to Meyer's Yahoo! account. Meyer sent the undercover detective images of child and adult pornography, as well as an explicit video of himself. He attempted to persuade the undercover detective to send him sexually explicit pictures of herself.
This case was investigated by the Federal Bureau of Investigation, the MacDill Air Force Base Office of Special Investigations (OSI), the Largo Police Department, the Kenton County (Kentucky) Police Department, the Pennsylvania State Police, and the United States Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Jennifer L. Peresie.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Another Guilty Plea in Aryan Knights InvestigationRead the Press Release
Defendant Pleads Guilty to Conspiring to Distribute Meth
BOISE – Joseph Anthony Goulart, 42, of Caldwell, Idaho, pleaded guilty today in United States District Court to conspiring to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced.
According to information presented in court today, Goulart admitted that he entered into a conspiracy with other individuals to distribute methamphetamine. In September 2012, law enforcement agents served a search warrant on Goulart’s residence, where agents found approximately one and one-half pounds of methamphetamine.
A federal grand jury indicted Goulart on October 10, 2012. The indictment and thirteen others were the result of a long-term investigation by the Treasure Valley Metro Violent Crimes Task Force. The investigation focused on illegal drug distribution by the “Aryan Knights,” a gang active in prison and on the streets throughout Idaho. Through the investigation, law enforcement agents identified Aryan Knights gang members who were trafficking methamphetamine, as well as associates of the gang who were the source of that methamphetamine.
The charge is punishable by a minimum term of ten years up to life in prison, a maximum fine of $10 million, and a minimum term of five years of supervised release.
Sentencing is set for April 30, 2013, before the Hon. John C. Coughenour, U.S. District Judge for the Western District of Washington, at the federal courthouse in Boise.
The cases were the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, U.S. Marshals Service, and the Treasure Valley Metro Violent Crime Task Force, a task force comprised of federal, state and local agencies, including the Boise Police Department, Ada County Sheriff’s Office, Caldwell Police Department, Nampa Police Department, Meridian Police Department, and Canyon County Sheriff’s Office.
The Aryan Knights cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Albanian National Admits Robbing Two TD Banks in Passaic and Bergen CountiesRead the Press Release
NEWARK, N.J. – An Albanian national who was living in Clifton, N.J., admitted in federal court today to robbing two TD Bank branches while armed with a gun in late 2011, U.S. Attorney Paul J. Fishman announced.
Shpend Mazari, 30, also known as “Arlind Hyseni”and “Luie Belushi,” pleaded guilty to an Information charging him with two counts of bank robbery at two TD Bank branches. One occurred on Nov. 2, 2011, in Clifton in Passaic County, N.J. and the other on Dec. 30, 2011, in Wallington in Bergen County, N.J.
Mazari pleaded guilty before U.S. District Judge Esther Salas. At his plea hearing, he admitted Arlind Hyseni is his real name. He was previously arrested on Feb. 28, 2012, in New York City.
According to documents filed in this case and statements made in court:
On Nov. 2, 2011, Mazari entered a TD Bank in Clifton armed with a handgun and disguised with a baseball cap and a flesh-colored mask covering the lower part of his face. He ordered two bank employees to go to the vault and turn over cash, which they placed into a dark nylon bag.
Mazari left the bank with $286,000 in cash, which included several “bait” bills and a dye pack. Mazari dropped the money a short distance from the scene after the dye pack concealed within the bills exploded.
On Dec. 30, 2011, Mazari entered a TD Bank in Wallington shortly after it opened. He vaulted over the teller counter wearing a ski mask and armed with a handgun. He again ordered bank employees to go to the vault and hand over cash, this time making off with $182,000.
The charges to which Mazari pleaded guilty carry a maximum penalty of 25 years in prison and a fine of $250,000, or twice the total loss or gain, whichever is greatest. Sentencing is scheduled for May 20, 2013.
Mazari was wanted by Interpol in a 2004 homicide in Albania. He was since convicted in absentia and sentenced to 25 years. It is the U.S. Attorney’s position that he must serve his time in the U.S. first.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez in Newark, and Department of Homeland Security, Immigration and Customs Enforcement, under the direction of Andrew M. McLees, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Mala Ahuja Harker of the U.S. Attorney’s Office Economic Crimes Unit in Newark.13-068
Defense counsel: David Holman Esq., Assistant Federal Public DefenderMazari, Shpend Information
Additional Defendant Sentenced in Operation No QuarterRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today United States District Judge Louise W. Flanagan sentenced an additional defendant in a large drug trafficking conspiracy. JEREMY RICHARDSON, 28, of Greenville, North Carolina, received 150 months imprisonment followed by five years supervised release. RICHARDSON received an enhanced sentence due to his status as a career offender.
A Federal Grand Jury returned a Criminal Indictment on May 8, 2012, charging RICHARDSON with six violations of federal narcotics laws. RICHARDSON entered a guilty plea on September 11, 2012, to conspiring to distribute and possess with the intent to distribute 28 grams or more of crack cocaine and a quantity of powder cocaine.
According to evidence presented in Court, controlled buys were arranged in which crack cocaine was purchased from RICHARDSON during a two-year investgation. On several occasions during the investigation officers seized crack and powder cocaine from RICHARDSON. The investigation revealed that RICHARDSON had been selling drugs since 2001 and was responsible for the distribution of over 800 grams of crack cocaine and 10 kilograms of powder cocaine.
OCDETF Operation “No Quarter” was designed to attack the infrastructure of the Mexican Drug Trafficking Organizations (DTO), including those of the Los Zetas, La Familia, Gulf and Sinaloa drug cartels, operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico. These DTO’s are responsible for the importation of large quantities of cocaine, marijuana, heroin, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico.
The investigation spanned 10 years and 5 North Carolina counties. As part of the investigation, over 100 individuals have been charged by indictment or criminal information in the Eastern District of North Carolina and state courts. In addition, $1.5 million in U.S. Currency, 127 kilograms of cocaine with a street value of $3.8 million dollars, 41 pounds of crystal methamphetamine with a street value of $650,000, 160 lbs of marijuana with a street value of $170,000, 32 grams of heroin, 35 firearms and 35 real properties valued at $1.5 million were seized by law enforcement authorities.
Investigation of this case was conducted by the Drug Enforcement Administration (DEA) - Raleigh and Greensboro Resident Offices, the New York Field Division and numerous other DEA offices in the United States and Mexico; the Internal Revenue Service – Criminal Investigation Division; the Bureau of Alcohol, Tobacco, Firearms and Explosives – Raleigh and Wilmington offices; the United States Marshals Service; the United States Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) – Raleigh and Tampa, Florida offices; the North Carolina State Bureau of Investigation; the North Carolina National Guard; the North Carolina State Highway Patrol; the Greenville Police Department; the Pitt County Sheriff’s Office; the Pamlico County Sheriff’s Office; the Lenoir County Sheriff’s Office; the Craven County Sheriff’s Office; the Carteret County Sheriff’s Office; the Beaufort County Sheriff’s Office; the New Bern Police Department, the Wayne County Sheriff’s Office; the Person County Sheriff’s Office; the Farmville Police Department; the Goldsboro Police Department; the Rocky Mount Police Department; the Burlington Police Department, the Alamance County Sheriff’s Office, and the Wilson Police Department.
The federal prosecutions were handled by Special Assistant United States Attorneys Glenn Perry and Augustus Willis, IV. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Mr. Willis is a prosecutor with the Craven, Carteret and Pamlico Counties District Attorney’s Office. District Attorneys Clark Everett and Scott Thomas have assigned Mr. Perry and Mr. Willis to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Their assignments to the United States Attorney’s Office have been made possible by grants funded by the Governor’s Crime Commission.
Wednesday 6 February 2013
Wood County Woman Guilty of Methamphetamine ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 42-year-old Mineola, Texas woman has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jennifer Northcutt pleaded guilty to possession with intent to distribute methamphetamine on Feb. 5, 2013, before U.S. Magistrate Judge Judith K. Guthrie.
According to information presented in court, on Aug. 21, 2010, Northcutt was found in possessio9n of methamphetamine which she intended to distribute to others. She admitted to possessing approximately 17 grams of methamphetamine and to being in possession of a firearm while distributing methamphetamine.
A federal indictment was returned on Nov. 7, 2012, charging Northcutt and two co-defendants with federal drug crimes.
Northcutt faces up to 40 years in federal prison at sentencing. A sentencing date has not been set.
This case is being investigated by the Drug Enforcement Administration and the Mineola Police Department and prosecuted by Assistant U.S. Attorney Bill Baldwin. ####Whittemore Man Sentenced to Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to manufacture and distribute methamphetamine was sentenced February 5, 2013, to ten years in federal prison.
Matthew Ryan McCauley, 33, from Whittemore, Iowa, received the prison term after a September 17, 2012, guilty plea to conspiracy to manufacture and distribute methamphetamine. In October 2008 McCauley was convicted of possession of a controlled substance, 1st offense (cocaine) and in April 2003, McCauley was convicted of possession of a precursor with intent to manufacture methamphetamine, both in Iowa.
At the guilty plea, McCauley admitted his involvement from about December 2010 through about May 2012 with at least 50 grams of actual (pure) methamphetamine and at least 100 grams of pseudoephedrine for the manufacture of methamphetamine. On May 2, 2012, McCauley traded approximately .25 grams of methamphetamine in exchange for 20 pseudoephedrine pills in a controlled transaction with an undercover law enforcement officer. McCauley planned to use the pseudoephedrine to manufacture methamphetamine.
McCauley was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. McCauley was sentenced to 120 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
McCauley is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by Kossuth County Sheriff’s Office, Clay County Sheriff’s Office, Iowa Department of Narcotics Enforcement, and the Iowa Great Lakes Drug Task Force.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-3023.
West Des Moines Man Pleads Guilty to Tax EvasionRead the Press Release
DES MOINES, IA – Charles R. Barbour, of West Des Moines, Iowa, pleaded guilty to one count of income tax evasion in a proceeding before United States Magistrate Judge Celeste F. Bremer, announced United States Attorney Nicholas A. Klinefeldt. Sentencing has been scheduled for May 9, 2013, at the United States Courthouse in Des Moines before United States District Court Judge John A. Jarvey.
As part of his written plea agreement filed February 6, 2013, Barbour agreed to plead guilty to a U.S. Attorney’s Information charging him with one count of income tax evasion. In the plea agreement, Barbour agreed that he did not report all income he earned making dentures for a private dental practice. Barbour agreed that he willfully understated his income for tax year 2006 in the amount of $80,927.00; for tax year 2007 in the amount of $50,940.00; for tax year 2008 in the amount of $52,895.00 and for tax year 2009 in the amount of $11,300.00. Babour also admitted to claiming false business expenses on his returns during tax years 2007, 2008 and 2009.
Barbour faces a maximum penalty of up to 5 years in prison, a maximum fine of $250,000, or both a fine and imprisonment. Additionally, under the plea agreement, Barbour agrees to cooperate with the Internal Revenue Service to pay all back taxes, penalties and interest due. Barbour was released on bond, under the supervision of the United States Probation Office, pending imposition of sentence.
This case was investigated by the Internal Revenue Service, Criminal Investigation, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Virginia Man Pleads Guilty to Charges in Shooting of Security Guard at Family Research Council- Defendant Targeted Organization in Planned Attack-Read the Press Release
WASHINGTON – Floyd Lee Corkins, II, 28, pled guilty today to three felony charges, including a terrorism offense, in the August 2012 shooting of a security guard at the Family Research Council in downtown Washington, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Corkins, of Herndon, Va., pled guilty in the U.S. District Court for the District of Columbia to charges of committing an act of terrorism while armed, assault with intent to kill while armed, and interstate transportation of a firearm and ammunition. The Honorable Richard W. Roberts scheduled sentencing for April 29, 2013. The terrorism offense carries a statutory maximum of 30 years in prison. The assault charge carries a statutory maximum of 30 years of incarceration, and the weapons-related charge carries up to 10 years in prison.
Corkins has been in custody since his arrest after the Aug. 15, 2012 shooting.
This marks the first time that a defendant has been charged with and convicted of committing an act of terrorism under a provision of the District of Columbia’s Anti-Terrorism Act of 2002 that covers criminal actions committed with the intent to “intimidate or coerce a significant portion of the civilian population of the District of Columbia or the United States.”
According to the government’s evidence, on Aug. 15, 2012, at about 10:45 a.m., Corkins entered the office of the Family Research Council, at 801 G Street NW, and encountered an unarmed security guard. Corkins retrieved a firearm from his backpack and pointed it at the security guard. The security guard charged Corkins and a struggle ensued, during which Corkins fired three shots, striking the guard in the arm. Despite the gunshot wound and Corkins’s subsequent discharges of the gun, the security guard heroically succeeded in disarming the defendant and forcing him to the ground and onto his belly.
According to a statement of offense, signed by the defendant as well as the government, Corkins targeted the Family Research Council because of its views, including its advocacy against recognition of gay marriage. He entered the building with the intention of shooting and killing as many employees of the organization as he could.
“Were it not for the heroic guard who tackled Floyd Corkins, he could have succeeded in perpetrating a mass killing spree in the nation’s capital,” said U.S. Attorney Machen. “This case highlights the dangers of access to high-capacity magazines that allow killers to inflict carnage on a mass scale in the blink of an eye. Today’s guilty plea makes clear that using violence to terrorize political opponents will not be tolerated.”
“Individuals such as Mr. Corkins, who commit violent acts in pursuit of political aims, are a danger to our society and to the freedoms we enjoy as citizens,” said Assistant Director in Charge Parlave. “In today’s plea, Mr. Corkins admitted to committing an act of terrorism in the District of Columbia. Together with our partner law enforcement agencies and with the assistance of the community, the FBI will pursue all those who seek to intimidate or harm U.S. citizens.”
“This was a horrible act,” said Police Chief Lanier. “Fortunately, a quick-thinking employee was able to disarm and subdue the shooting suspect. His dedication to duty and willingness to put himself in harm’s way prevented others from being seriously injured or killed. He is an inspiration to many and a hero to all that were affected.”
According to the statement of offense, Corkins purchased a semiautomatic pistol from a store in Virginia on Aug. 9, 2012, and picked up the weapon the following day. On the afternoon of Aug. 13, he rehearsed his planned trip to the Family Research Council. On the night before the shooting, Corkins returned to the gun store and engaged in shooting practice.
On the morning of Aug. 15, Corkins rode Metrorail from Virginia and into the District of Columbia, got off at the Gallery Place stop, and went to the Family Research Council. To gain access into the building, he falsely told the security guard that he was there for an interview as a prospective intern. Upon gaining entry, Corkins approached the receptionist desk, which the security guard was manning, intending to shoot and kill him. However, the security guard fought back and, as the two men scuffled, Corkins fired his gun three times, striking the guard once in his left arm in the process. After the security guard subdued Corkins, Corkins stated, “It’s not about you,” but about the organization’s policies. He also was heard making remarks such as, “I don’t like these people, and I don’t like what they stand for.”
In a search after the shooting, MPD officers discovered two fully loaded magazine clips in one of Corkins’s front pants pockets, as well as a Metro card and a handwritten list containing the names of the Family Research Council and three other organizations that openly identify themselves as having socially conservative agendas. A search of Corkins’s backpack turned up, among other items, a box of 50 rounds of 9 mm ammunition. They also found 15 individually wrapped sandwiches that Corkins had purchased the previous day from Chick-fil-A.
Corkins later made statements to the FBI in which he said that he was a political activist and considered the Family Research Council to be a lobbying group. He also stated that he intended to kill as many people as possible and smother the Chick-fil-A sandwiches into their faces. Among other things, he said, “Chick-fil-A came out against gay marriage so I was going to use that as a statement.”
Corkins also revealed the steps he took in planning the attack, saying that he had been thinking about perpetrating similar violence for years but never carried out an attack. Had he not been stopped at the Family Research Council, he stated, he planned to go to the second organization on the list he was carrying and wage a similar shooting there.
The security guard, who also was the building’s manager, underwent emergency surgery in which metal plates were inserted into his left arm so that shattered bones could heal. Numerous bullet fragments remain in his arms, and he was unable to work for months.
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director in Charge Parlave and Chief Lanier expressed their appreciation to all those who investigated the case from the FBI’s Washington Field Office and the MPD. They also commended the efforts of Assistant U.S. Attorneys Ann H. Petalas and T. Patrick Martin of the National Security Section of the United States Attorney’s Office, who prosecuted the case.
13-039Violent Gang and Gun Crime Reduction ProgramRead the Press Release
Deadline for submission of a grant proposal to the U.S. Attorney is February 18, 2013
United States Attorney Stephanie A. Finley announced today that the Department of Justice (DOJ), the Office of Justice Programs (OJP), and the Bureau of Justice Assistance (BJA) is seeking applications for funding of grants under the Violent Gang and Gun Crime Reduction Program, also known as Project Safe Neighborhoods. This program furthers the Department of Justice’s mission and violent crime reduction strategy by providing support to state, local and tribal efforts to reduce gun and gang-related violent crime. Contingent on the availability of funds, grant awards totaling $300,000 are possible in the Western
District of Louisiana to fund new and current comprehensive gun crime reduction strategies and gang violence reduction strategies. The deadline to submit the proposal to the U.S. Attorney’s Office is noon on February 18, 2013.Various types of single or multi-grantee grant applications are welcome, including those that address the following:
- Gang violence and gun violence reduction, deterrence, prevention, community outreach, and education;
- Enforcement, adjudication, and supervision programs;
- Prisoner reentry programs; or
- Other innovative related projects.
The 2013 Competitive Grant Announcement can be found at http://www.bja.gov/Funding/13PSNsol.pdf. Those who are interested should contact Robert W. Gillespie Jr., Assistant U. S. Attorney and PSN and Anti-Gang Coordinator for the Western District of Louisiana, at (318) 676-3600 for additional information.
The deadline to submit applications to the U.S. Attorney is noon on February 18, 2013.
Applicants can contact the www.Grants.gov Customer Support Hotline for technical assistance with submitting an application at (800) 518-4726, (606) 545-5035, or by e-mail to [email protected].
For more information regarding the Project Safe Neighborhoods Program, visit the Western District of Louisiana U.S. Attorney’s Office website at: http://www.usdoj.gov/usao/law/programs/projectsafe.html, as well as www.psn.gov and http://www.ojp.usdoj.gov/BJA/grant/psn.html.
Violent Drug Dealer Sentenced to 15 Years ImprisonmentRead the Press Release
PHOENIX– On Feb. 4, 2013, Robert Francis Dayaye, Jr. (a.k.a. “Fat Rob”), 33, of Whiteriver, Ariz., was sentenced by U.S. District Judges Neil V. Wake and G. Murray Snow to a combined term of imprisonment of 15 years. Dayaye pleaded guilty on Oct. 5, 2102, to possession with intent to distribute methamphetamine and attempted carjacking in two separate cases
Before his arrest, Dayaye was the leader of the Diamond Creek Boyz (“DC Boyz”) gang on the Ft. Apache Indian Reservation. On Dec. 6, 2011, Dayaye was found in a vehicle with a handgun and over 100 grams of actual methamphetamine. A federal search warrant was executed on a storage locker Dayaye was utilizing in Feb. 2012, and approximately 100 firearms were seized, most of which were military style weapons and four of which were illegal.
On June 11, 2011, Dayaye ordered four others to steal a car from a female acquaintance. The four men attempted to steal the car by force, which resulted in the hospitalization of the victim.
The investigation in this case was conducted by the Federal Bureau of Investigation, the Arizona Department of Public Safety, the Bureau of Alcohol Tobacco Firearms and Explosives and the Drug Enforcement Administration, as part of the Northern Arizona Violent Gang and Safe Streets Task Force. The prosecution was handled by Dimitra H. Sampson and Keith E. Vercauteren, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-12-8017-PCT-NVW and CR 12-8098-005-PCT-GMS
RELEASE NUMBER: 2013-014_DayayeFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Union County, N.J., Man Indicted for Distributing Child Sexual Abuse Images over the InternetRead the Press Release
NEWARK, N.J. – A Union County, N.J., man was indicted today by a federal grand jury for possessing and distributing over the Internet images depicting child sex abuse, U.S. Attorney Paul J. Fishman announced.
Carl Tullis Sr., 48, of Plainfield, N.J., was previously arrested in June 2011. He was indicted today on two counts of distribution of child pornography and one count of possession.
According to documents filed in the case and statements made in court:
On June 2, 2011, special agents of the FBI executed a search warrant at Tullis’ residence. They seized digital evidence that contained more than 1,600 images and 1,400 videos depicting child sexual abuse, including material that involved prepubescent minors and material that portrays sadistic or masochistic conduct. The digital evidence seized included files previously downloaded from Tullis by law enforcement agents working in an undercover capacity on a publicly available peer-to-peer network.
On the distribution counts, Tullis faces a mandatory minimum penalty of five years in prison, a maximum potential penalty of 20 years and a $250,000 fine. On the possession count, he faces a maximum penalty of five years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI Newark Division’s Child Exploitation Task Force, under the direction of Acting Special Agent in Charge David Velazquez in Newark, with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto and Courtney M. Oliva of the U.S. Attorney’s Office General Crimes Unit in Newark.
13-065
Defense counsel: Carol Gillen Esq., Newark, NJTullis Indictment
US Attorney Durkan Reports to the Community on Law Enforcement PrioritiesRead the Press Release
U.S. Attorney Jenny A. Durkan today issued her 2012 Annual Report on the activities and priorities of the U.S. Attorney’s Office for the Western District of Washington.
“Every person in our office is honored to serve the people of this region. We work hard to advance the safety of our nation, the security of our communities and the rights of victims of crime,” said U.S. Attorney Durkan. "In 2012, we made significant progress in many of our priority areas: terrorism, violent crime, cybercrime and protecting vulnerable communities from both financial crime and physical exploitation.”
The U.S. Attorney’s Office also focused on stripping criminals of their profits, returning monies to taxpayers and victims. In 2012, the office recovered more than $40 million to compensate the victims of crime and to support the federal treasury and law enforcement activities. The office has discharged its mission in a manner that is fiscally responsible and adds value to the federal treasury. In 2012, the office saw significant collections of restitution for the victims of convicted predator Weldon Marc Gilbert, and we forfeited to the U.S. Treasury the proceeds of crime, including more than $5 million from an illegal internet gambling business.
The diverse Western District of Washington presents many challenges. Western Washington has urban areas and vast open lands, National Parks and National Forests. It is home to the largest military base west of the Rockies (Joint Base Lewis-McChord). The district shares a water and land border with Canada and has two of the ten busiest sea ports in the United States.
“Part of our work is to reach out to all communities and residents as we work to build a safe and secure America. I want to express my thanks to all who help keep Western Washington a safe and welcoming place to live, work and raise our children. My colleagues and I look forward to continuing to meet these challenges in 2013,” said U.S. Attorney Durkan.
You can read the full report by following this link.
U.S. Attorney Brendan Johnson Completes Term as Chairman of National CommitteeRead the Press Release
United States Attorney Brendan V. Johnson has completed his term as Chairman of the Department of Justice’s Native American Issues Subcommittee (NAIS), but will continue to advise the Attorney General in his role as a member of the Attorney General’s Advisory Committee of U.S. Attorneys (AGAC). Johnson has served as chairman of the NAIS since 2009, shortly after his confirmation as U.S. Attorney for the District of South Dakota.
Attorney General Holder thanked U.S. Attorney Johnson for serving as chair of the NAIS for the past three years, 2009-2012. “Brendan Johnson’s dedication and commitment to improving public safety in Indian Country will continue to positively impact tribal communities for years to come. His leadership has brought the U.S. Attorney community together to address a myriad of important issues in Indian Country, and his guidance has been an invaluable asset to this department. I look forward to my ongoing work with U.S. Attorney Johnson as a member of the AGAC.”
As NAIS chair, Johnson was instrumental in bringing South Dakota Indian country issues to the forefront. In July 2011, Attorney General Holder, Associate Attorney General Thomas J. Perrelli, and approximately 30 United States Attorneys from across the country visited South Dakota to meet with tribal leaders in Rapid City and Pine Ridge. The Department of Justice has worked closely with tribal communities to empower tribal courts, increase law enforcement cooperation, and improve public safety in Indian Country. In South Dakota, this new spirit of cooperation has produced a significant increase in prosecutions as well as the development of new programs designed to empower tribal court systems.
Johnson’s service will continue on the AGAC. The AGAC is a select committee of United States Attorneys that was created in 1973 to serve as the voice of the U.S. Attorneys and to advise the Attorney General on policy, management, and operational issues impacting the offices of the U.S. Attorneys.
Attorney General Holder also announced the appointment of U.S. Attorney for the District of North Dakota Timothy Q. Purdon to replace Johnson as chair of NAIS, and U.S. Attorney for the Western District of Oklahoma Sanford C. Coats to serve as vice chair.
“I’m honored that I had the opportunity to serve as NAIS chair for the past three years, and sincerely appreciate Attorney General Holder’s confidence in me,” said Johnson. “I’m proud of our accomplishments, and am confident these efforts will continue under the able guidance of U.S. Attorney Purdon.”
Two More Defendants Sentenced to Prison for Identity TheftRead the Press Release
Defendants Relied on Local Restaurant & Retail Establishment Employees
to Steal Credit Card Account Information from Unsuspecting CustomersATLANTA – Two leading defendants in a large-scale credit card theft ring involving the use of “skimming” devices at restaurants and retail stores were sentenced to federal prison today by United States District Court Judge Richard W. Story. Norman Uriah Simmonds, 33, of Lilburn, Georgia, was sentenced to serve 8 years, 6months, followed by 3 years of supervised release, and he was ordered to pay restitution in the amount of $107,324. Steven Michael Jackson, 28, of Atlanta, Georgia, was sentenced to serve 5 years, 1month, followed by 3 years of supervised release, and he was ordered to pay restitution in the amount of $33,254.
“These two defendants were part of an organized scheme involving at least 11 people, some of whom worked at local restaurants and stores, who tried to make a living by selling and using stolen credit cards,” said United States Attorney Sally Quillian Yates. “This case demonstrates that consumers need to be aware of the risks of using credit cards, and that they need to check their accounts regularly for unexplained purchases or activity.”
“This is a good example of solid investigative work and teamwork on everyone’s part. As Postal Inspectors, we are proud to have prevented so many people from becoming further victimized by these individuals, who could have caused considerable financial damage and personal inconvenience to consumers.” said Keith Morris, Postal Inspector in Charge of the Atlanta Division.
“These defendant’s criminal actions reflect how advancements in digital technology can also sometimes have a negative effect on our communities. The Secret Service, with its law enforcement partners, will continue to actively investigate those that commit cybercrimes to prey on unsuspecting victims,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.According to United States Attorney Yates, the charges and other information presented in court: From approximately June 2009 to November 2010, the defendants obtained and possessed electronic devices referred to as “skimmers,” which are capable of copying and storing debit and credit card account information. The defendants, some of whom were employed by restaurant and retail establishments, used the skimmers to copy and store debit and credit card account numbers from unsuspecting customers. The restaurants and retail establishments included Shogun Japanese Steakhouse in Columbus, Georgia; a Krystal Restaurant in Columbus, Georgia; a McDonald’s Restaurant in Atlanta, Georgia; and Polished Nail Salon in Lawrenceville, Georgia. All of the impacted restaurants and retail establishments cooperated in the investigation.
After retrieving the debit and credit card account numbers from the skimmers and processing the data, the defendants transferred the stolen account numbers to the magnetic stripes of blank white plastic cards or gift cards using device-making equipment referred to as “encoders,” which altered the cards’ magnetic stripes to include the stolen debit and credit card account numbers. The defendants subsequently used the altered cards to purchase things of value, including United States postal stamps from Automated Postal Centers throughout Georgia.
In addition to defendants Simmonds and Jackson, the indictment also charged nine other individuals, all of whom have pled guilty:
- Sean Carlos Deloatch, 27, of Columbus, Georgia;
- Bryan Charles Jones, 33, of Atlanta, Georgia;
- Vanessa Echeverry, 20, of Lawrenceville, Georgia;
- Antonio Escobal, 35, of Columbus, Georgia;
- Lakeysha Renee Hill, 27, of Columbus, Georgia;
- Jerome Christopher Ledgister, 27, of Stockbridge, Georgia;
- Dwayne Matthew Neely, 29, of Columbus, Georgia;
- Tamicka Lashaun Trice, 28, of Atanta, Georgia; and
- Carmen Marie Walker, 25, of Atlanta, Georgia.
Defendants Deloatch, Echeverry and Trice are scheduled to be sentenced before United States District Court Judge Richard W. Story on Wednesday, February 13, 2013, at 2 p.m. The remaining defendants have previously been sentenced.
This case was investigated by Postal Inspectors of the United States Postal Inspection Service and Special Agents of the United States Secret Service.
Assistant United States Attorney Steven D. Grimberg is prosecuting the case.
For further information please contact the U.S. Attorney's Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Two Men Charged with Illegally Re-Entering the U.S.Read the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that criminal charges were filed against two men accused in separate incidents of illegally re-entering the United States following deportation or removal.
An indictment alleges that on Jan. 5, 2013, Hector Sanchez-Soto, 47, formerly of Cleveland, was illegally present in the United States after previously being deported subsequent to a conviction for the commission of illegal re-entry following deportation or removal.
Another indictment alleges that on Jan. 7, 2013, Concepcion Quevedo-Rodriguez, age 44, of Guatemala, was illegally present in the United States after previously being deported subsequent to a conviction for the commission of illegal re-entry following deportation or removal.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.The Sanchez-Soto case is being handled by Assistant United States Attorney Lauren Bell after investigation by United States Immigration and Customs Enforcement.
The Queved0-Rodriguez case is being handled by Assistant United States Attorney Alissa M. Sterling following an investigation by United States Border Patrol, Sandusky, Ohio.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to the case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Toledo Man Charged with Theft of Mail by A Postal EmployeeRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that an information was filed against Deldre L. Jordan, age 40, of Toledo, Ohio. The charge relates to theft of mail by a postal employee beginning on or about January 2012 and continuing to March 23, 2012.
If convicted, defendant’s sentence will be determined by the Court after review of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Office of Inspector General, United States Postal Service. The case is being handled by Assistant United States Attorney Angelita Cruz Bridges.
An information is only a charge and is not evidence of guilt. The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.
Title of the news release goes hereRead the Press Release
Orlando, Florida - U.S. Attorney Robert E. O'Neill announces that a federal jury found Christopher Castillo (28, Melbourne) guilty yesterday of threatening to kill the President of the United States. Castillo faces a maximum penalty of 5 years in federal prison. His sentencing hearing is scheduled for April 26, 2013, before United States District Judge John Antoon, II. Castillo was indicted on December 12, 2012, after a criminal complaint was issued on November 13, 2012.
According to testimony and evidence presented at trial, Castillo made a threat against the President on a social networking site. In November 2012, Castillo posted the following on Facebook, "that's the last straw, if he gets re-elected I'm going to hunt him down and kill him watch the life disappear from his eyes." After someone informed Castillo that threatening the President was a federal offense, Castillo posted, "I wouldn't call it a threat but more of a promise, let them come after me...Be more than happy to take a few of them with me."
A witness reported the threat to the United States Secret Service, and law enforcement officers subsequently interviewed Castillo at his home. During the interview, Castillo admitted making the statements. He also stated that he meant it because of his "severe anger" toward the President because of the President's views on healthcare. When asked what he would do if the President were standing in front of him, Castillo made an explicit statement about slapping and beating the President. Castillo also told agents that he would call the President a terrorist. During the trial, Castillo testified that he was just angry and did not really mean that he would kill the President.
This case was investigated by the United States Secret Service. It is being prosecuted by Assistant United States Attorney Shawn P. Napier.
Third Adams Produce Company Official Charged with FraudRead the Press Release
February 6 , 2013BIRMINGHAM – Federal prosecutors have charged a third Adams Produce Company official in connection with fraud at the bankrupt Birmingham distributor of fresh fruits and vegetables, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
The U.S. Attorney's Office today charged DAVID ANDREW KIRKLAND, the company's director of purchasing, with conspiracy to defraud the federal government of several hundred thousand dollars through a scheme to create false invoices and purchases orders. In a plea agreement also filed today in U.S. District Court, Kirkland agrees to plead guilty to the conspiracy charge.
"This defendant was an officer of Adams Produce Company who joined other employees in a fraud meant to cover the company's deteriorating financial condition," Vance said. "The fraud included cheating the government on contracts involving military bases and schools. The investigation of wrongdoing by former Adams officers and employees continues, and any who have committed crimes will be held accountable," she said.
Kirkland, 44, formerly of Birmingham and now living in Texas, is charged in the same purchasing fraud scheme as Christopher Alan Pfahl, a purchasing program specialist for Adams Produce. Kirkland was Pfahl's supervisor. Pfahl, 41, of Birmingham, was charged in December and pleaded guilty in January to conspiracy to defraud the government of $481,000 on produce contracts.
On Jan. 29, the U.S. Attorney's Office charged Adams Produce Chief Executive Officer Scott David Grinstead, 45, of Birmingham, with fraud against the company, failure to report a felony against the government and failure to file federal income tax returns. The felony that Grinstead is charged with being aware of and not reporting is the purchasing scheme.
According to the charges and plea agreements in the three cases, Pfahl, Kirkland and other employees of Adams Produce engaged in a scheme to create false records that reflected a higher purchasing cost for fruits and vegetables from a national distributor than Adams Produce actually paid. The inflated costs were then presented to the U.S. Government, which had agreed to pay a certain amount over Adams' cost for produce.
The federal government, through the Defense Supply Center Philadelphia, was one of Adams' customers. The supply center contracted with Adams Produce to provide fresh fruits and vegetables to military bases, public school systems, junior colleges and universities. Adams Produce entered into contracts with the government worth millions of dollars, according to court records.
Grinstead is charged with knowing of the fraud against the government and allowing it to continue and end slowly, so as to avoid raising red flags with the government, rather than stopping the fraud and reporting it to authorities. Grinstead also is charged with wire fraud for wiring hundreds of thousands of dollars from an Adams Produce account to American Express to pay for clothing, jewelry, personal travel for himself and his family, lawn care at this home, and items for a house on Lake Martin.
Grinstead faces two counts of failure to file a federal income tax return, one for 2009 and one for 2010. According to the charges, Grinstead had gross income of about $748,801 in 2009 and about $1,878,700 in 2010 and willfully failed to file tax returns with the Internal Revenue Service for either year.
Grinstead has agreed to plead guilty to the charges against him. As part of his plea agreement with the government, he must pay $450,000 in restitution to the bankruptcy estate of Adams Produce for the benefit of the company's employees who were not fully paid when Adams closed abruptly and filed for bankruptcy last year.
The FBI and the Internal Revenue Service investigated the cases, which Assistant U.S. Attorney George A. Martin Jr. is prosecuting.
Tax Protestor Sentenced in Federal CourtRead the Press Release
EUGENE, Ore. – Randall Blair Johnson, 54, of Sisters, Oregon, was sentenced yesterday to 41 months in federal prison and was ordered to pay $260,536 in restitution to the IRS and a $50,000 fine after a jury found him guilty of three counts of income tax evasion, three counts of willful failure to file tax returns and one count of witness tampering.
“People who flout the tax laws increase the burden on law-abiding citizens,” stated U.S. Attorney Amanda Marshall. “In this case, the defendant mouthed protest rhetoric, but his real motivation was greed. His sentence shows what happens when someone tries to defy the tax code.”
According to the indictment, Johnson was a realtor and half owner of TR Hunter Real Estate, a real estate company in Florence, Oregon. Johnson’s primary sources of income were from sales of real estate, commissions and, in 2005, the sale of TR Hunter Real Estate. The indictment alleged that Johnson had a history of timely filing income tax returns but filed no returns for 2002 through 2005, despite being required by law to do so.
The evidence at the trial last June proved that Johnson filed federal income tax returns for nearly thirty years. Then, in 2002, he fired his C.P.A., stopped filing returns, stopped paying income tax, and started sending frivolous tax protestor materials to the IRS and Oregon Department of Revenue.
Johnson’s income more than quadrupled from 2002 to 2005 but he paid no income tax, claiming to revenue officials that the tax laws did not apply to him. An IRS revenue agent testified that Johnson had over $260,000 in taxes due and owing for that four-year period. Despite not filing his own income tax returns, Johnson paid property taxes, filed corporate tax returns for TR Hunter Real Estate, and had delinquent income tax returns prepared for his wife.
Chief United States District Judge Ann Aiken increased Johnson’s sentence based on his attempt to influence grand jury testimony. In April of 2009, Johnson provided his brother-in-law and former business partner a letter instructing him to provide false answers to the prosecutor’s questions in the grand jury. Johnson’s attempt to corruptly influence grand jury testimony was the basis of his conviction for witness tampering.
Judge Aiken further increased Johnson’s sentence after finding that he used sophisticated means to conceal income and assets from the IRS. In addition to filing tax protestor materials with the IRS, Johnson sold real estate outside of escrow, transferred property into the names of family members and endorsed third party checks instead of cashing them or depositing them into his bank account. When he sold his interest in TR Hunter Real Estate to his partner in 2005, he insisted the sale not go through escrow, knowing that escrow would report the sale to the IRS.
Judge Aiken ordered Johnson to report to the U.S. Marshals on April 6, 2013 to begin serving his prison sentence.
This investigation was conducted by agents of the Internal Revenue Service Criminal Investigation. The case was prosecuted by Assistant U.S. Attorneys William “Bud” Fitzgerald and Scott Bradford.
Tax Preparer Sentenced to 36 Months for Preparing False Tax Returns and Making False StatementsRead the Press Release
NEWPORT NEWS, Va. – Robert E. Herring, 69, of Newport News, Va., has been sentenced to 36months in prison, followed by one year of supervised release, for preparing false federal income tax returns for clients to submit to the IRS or to mortgage lenders.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Sheila Olander, Acting Special Agent in Charge, IRS Criminal Investigation, Washington, D.C., Field Office, made the announcement after sentencing by United States District Judge Robert E. Doumar on Feb. 5, 2013.
“Return preparer fraud is a priority for IRS Criminal Investigation, said IRS Acting SAC Olander. “We have committed to working with our law enforcement partners to investigate and prosecute cases just like these. Fraud schemes, such as Mr. Herring’s, cause tremendous financial damage to everyone, especially those which defraud the IRS and other financial institutions. This sentence demonstrates our collective efforts to enforce the law and ensure public trust.”
Herring pled guilty on May 5, 2012, to aiding in the preparation of false tax returns and making a false statement to HUD/FHA. According to court documents, Herring operated Have Taxes Financial Service and GL&JS Tax Service, both of which performed tax preparation services. From 2006 through 2009, Herring would file returns – in many instances without the client’s knowledge or consent – that understated income and overstated expenses for a client’s federal tax return, and then file an amended return reporting increased income for certain clients who needed to obtain real estate financing. He prepared at least 19 false returns with a resulting tax loss of $174,845, and he deposited certain tax refunds into his own account without providing them to the taxpayer to whom the refund was owed. His mortgage fraud resulted in losses to the mortgage lender of $917,287.
This case was investigated by IRS Criminal Investigation. Assistant United States Attorney Brian Samuelsprosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Tax Charges Filed Against Man Who Operated Toledo-Area Gas Stations and Convenience StoresRead the Press Release
A Holland, Ohio, man was indicted on four tax counts related to his failure to claim more than $460,000 in taxable income, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Mohamed Tawfik, 41, was the president of several companies that operated gas stations and convenience stores in the Toledo area. Those companies included Moe’s of Ohio, Inc., MKSA South Inc., M. Khalid, Inc., M. Adla Sylvania, Inc. and Rocket Fuel of Toledo, Inc., according to the indictment.
Tawfik is charged is one count of failure to file a corporate tax return and three counts of tax evasion.
He failed to file a tax return for one of his businesses in 2006, according to the indictment.
For tax years 2007, 2008 and 2009, Tawfik underreported his income by approximately $460,000, resulting in unpaid taxes of approximately $150,000, according to the indictment.
This case is being prosecuted by Assistant United States Attorney Justin J. Roberts following an investigation by the Internal Revenue Service – Criminal Investigations.
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilty beyond a reasonable doubt.
Synthetic Drug Supplier SentencedRead the Press Release
HARRISONBURG, VIRGINIA -- A Baltimore man, who pleaded guilty to supplying synthetic drugs to drug dealers in Central Virginia, was sentenced this afternoon in the United States District Court for the Western District of Virginia in Harrisonburg to related drug charges.
Carlo Ernesto D’Addario, 43, of Baltimore, Maryland, previously pled guilty to one count of conspiracy to possess with the intent to distribute and distribute a controlled substance analogue. Today in District Court, D’Addario was sentenced to one-year in federal prison to be followed by five years of supervised release with the first six months being served as home detention.
“By bringing synthetic drugs into our communities, Mr. D’Addario endangered the health and safety of Virginians,” United States Attorney Timothy J. Heaphy said today. “These substances are volatile and dangerous, as reflected in a recent surge in emergency room visits and violent outbursts by users. Cases like this one demonstrate our commitment to prosecuting those who seek to profit on the sale of these dangerous illegal drugs. We will also continue to provide information about the dangers of these synthetic drugs and warn users and others about the potential for unanticipated health effects that often result from the use of these substances.”
D’Addario previously admitted to supplying synthetic drugs, also known as bath salts, to drug dealers in and around Augusta County. He has admitted that he transported the synthetic drugs from the Baltimore to Augusta County where he then sold the drugs to Holly Sprouse, a resident of Augusta County. Sprouse has previously pled guilty to a federal charge of conspiracy to possess with the intent to distribute and distribute a controlled substance analogue.The investigation of the case was conducted by the Drug Enforcement Administration, Jefferson Area Drug Enforcement Task Force and the Augusta County Sheriff’s Office. Assistant United States Attorney Ronald Huber is prosecuting the case for the United States.
Statement of Manhattan U.S. Attorney Preet Bharara on the Conviction of Nicole ZobkiwRead the Press Release
“The jury spoke clearly today through its verdict: lying to a federal grand jury and thereby obstructing its ability to seek the truth is against the law, and those who do so will be punished.”
St. Mary’s County Man Pleads Guilty to Sexually Exploiting Two Minor Girls to Produce Child PornographyRead the Press Release
Baltimore, Maryland - Cary Anderson, age 32, of Dameron, Maryland, pleaded guilty today to sexually exploiting minors to produce child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; St. Mary’s County Sheriff Tim Cameron; and St. Mary’s County State’s Attorney Richard Fritz.
According to that statement of facts that was part of his guilty plea, Anderson began sexually molesting a young girl when she was 11 years old. From February 17 to February 24, 2012, Anderson sexually exploited the girl, who was then 13 years old, and produced images documenting the abuse. Further, on February 24, 2012, Anderson also sexually exploited a 15 year old girl he met on the internet and brought to his home, and produced visual depictions documenting the abuse.
Anderson and the government have agreed that if the Court accepts his plea, a sentence of between 23 and 27 years in prison is the appropriate disposition of the case. U.S. District Judge J. Frederick Motz has scheduled sentencing for April 11, 2013.
As part of his plea, Anderson will also be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, St. Mary’s County Bureau of Criminal Investigations and the St. Mary’s County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas, assigned from the U.S. Department of Justice, Child Exploitation and Obscenity Section, who is prosecuting the case.
St. Francis Woman Pleads Guilty to Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that Rita Runs Above, age 35, of St. Francis, South Dakota appeared before U.S. District Judge Roberto A. Lange on February 5, 2013 and pled guilty to Abusive Sexual Contact. The maximum penalty upon conviction is 3 years in custody, a $250,000 fine, or both; life of supervised release; and a $100 special assessment.
The conviction stems from an incident that took place on August 22, 2012 when Runs Above had sexual contact with the victim who was incapable of consenting.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
A presentence investigation was ordered and a sentencing date was set for May 1, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Southlake, Texas, Man Convicted in Bank Fraud ConspiracyRead the Press Release
Defendant Conspired With Former Vice-President of Pavillion Bank in Richardson, Texas
DALLAS — Late yesterday, following a two-day trial before U.S. District Judge Reed C. O’Connor, a federal jury convicted Jason Dvorin, 45, of Southlake, Texas, on a superseding indictment charging one count of conspiracy to commit bank fraud, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Dvorin will remain on bond pending sentencing, which is set for July 11, 2013 before Judge O’Connor. Dvorin faces a maximum penalty of 30 years in federal prison, a $1 million fine and restitution.
The government presented evidence at trial that Dvorin entered into an agreement with Chris Derrington, the vice president of Pavillion Bank, located on West Campbell Road in Richardson, Texas, to deposit worthless checks in return for immediate access to the bank’s funds. Dvorin would bring in worthless credit card checks, or checks drawn on a closed account, and present them to Derrington for deposit. Knowing the checks were worthless, Derrington gave Dvorin immediate access to the bank’s funds. As soon as one worthless check was returned, Dvorin would deposit another worthless check. This pattern continued over the course of five years and resulted in 224 fraudulent deposits by Dvorin and the Derrington. By the time the scheme was uncovered, Pavillion bank sustained a loss in excess of $300,000.
Derrington, 61 of Dallas, was charged in a separate case with the same offense and pleaded guilty to that charge in May 2012. His sentencing date is presently set for February 28, 2013.
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 http://www.stopfraud.gov/.
The cases were investigated by the FBI and the FDIC Office of Inspector General. Assistant U.S. Attorneys Mindy Sauter and Michael Elliott are in charge of the prosecutions.
Sioux Falls Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that Royce Loudner, age 46, of Sioux Falls, South Dakota appeared before U.S. District Judge Roberto A. Lange and pled guilty to the Indictment that charged him with Failure to Register as a Sex Offender. Following his plea of guilty, and with the consent of all the parties, Loudner agreed to be sentenced immediately following his guilty plea. Loudner was sentenced to 18 months of imprisonment to be served concurrently to the sentence imposed in a prior matter. He was also sentenced to 5 years of supervised release and $100 to the Victim Assistance Fund.
Loudner was previously convicted of sexual abuse and is required to register as a sex offender. Loudner was discharged from Glory House on April 8, 2011. On April 18, 2011 he returned to Glory House. During this period, Loudner failed to update his sex offender registration status or register a new address as required by conditions of his supervised release and federal law.
The investigation was conducted by the U.S. Marshal’s Office and Assistant U.S. Attorney Meghan N. Dilges prosecuted the case. Loudner was immediately turned over to the custody of the U.S. Marshal.
Shiprock, N.M., Man Pleads Guilty to Federal Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Jack Belin, Jr., 59, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pled guilty this morning to an abusive sexual contact charge under a plea agreement with the U.S. Attorney’s Office.
Belin was arrested on Oct. 11, 2012, based on an indictment charging him with two counts of abusive sexual contact. According to the indictment, Belin committed the offenses on July 18, 2012, in Indian Country (the Navajo Indian Reservation), in San Juan County, N.M.
During this morning’s proceedings, Belin pled guilty to Count 2 of the indictment. In his plea agreement, Belin admitted that on July 18, 2012, he intentionally touched the genitals and buttocks of his victim without the victim’s consent.
Belin was remanded into the custody of the U.S. Marshals Service after entering his guilty plea. He will be detained pending his sentencing hearing, which has not yet been scheduled. At sentencing, Belin faces a maximum penalty of ten years in prison, and will be required to register as a sex offender after he completes his prison sentence.
This case was investigated by the Shiprock Division of the Navajo Nation Department of Public Safety and is being prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
Rochester Woman Sentenced for Role in an Armed RobberyRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 30-year-old Rochester woman was sentenced for her role during an armed robbery at a McDonald’s in Byron, Minnesota. United States District Court Judge Donovan W. Frank sentenced Quiana Shaneea Evans to 130 months in federal prison on one count of interference with commerce by robbery and one count of aiding and abetting the use, carrying, possessing, and discharging of a firearm during and in relation to a crime of violence. Evans was indicted on May 21, 2012, and pleaded guilty on October 2, 2012.
In her plea agreement, Evans admitted that on June 15, 2011, she entered the McDonald’s in Byron, Minnesota, with Christian Aaron Alexander, who was armed with a Colt, .45-caliber pistol. While Alexander brandished the firearm, Evans and Alexander both demanded money from the restaurant employees. They stole approximately $1,851.68, including personal property belonging to the restaurant employees, who were present when Alexander’s firearm discharged. Evans and Alexander ultimately restrained the employees by locking them in a cold storage room.
On December 3, 2012, Alexander, was sentenced to 168 months in federal prison on three counts of interference with commerce by robbery, in violation of the Hobbs Act, and one count of brandishing and discharging a firearm in relation to a crime of violence. The Hobbs Act, passed by Congress in 1946, allows federal prosecutors to prosecute violent, habitual criminals who commit armed robbery in places of business involved in interstate commerce. Federal prosecution of those cases is sometimes beneficial since the penalties are often tougher than under state law. Furthermore, because the federal system has no parole, those who receive federal sentences serve virtually the entire time imposed.
This case was the result of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the Olmsted County Sheriff’s Office. It was prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.Redby Man Pleads Guilty to Harboring A FugitiveRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 23-year-old Redby man pleaded guilty to harboring a fugitive last spring. Andrew Oakgrove pleaded guilty to one count of harboring and concealing a fugitive. Oakgrove, who was indicted on December 10, 2012, entered his plea before United States District Court Judge John R. Tunheim.
In his plea agreement, Oakgrove admitted that on April 30, 2012, he concealed Jason King from federal authorities. King was wanted on a federal arrest warrant for his indictment in connection to the December 30, 2011, armed robbery of Newby’s Market in Bemidji. Oakgrove also admitted leading police on a high-speed pursuit over several miles. Both men were arrested following the pursuit.
For his crime, Oakgrove faces a potential maximum penalty of five years in prison. Judge Tunheim will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Red Lake Tribal Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Jeffrey S. Paulsen.Ravenna Man Sentenced to 20 Years in Prison for Drug and Firearms ConvictionsRead the Press Release
A Ravenna man was sentenced to 20 years in federal prison for being a felon in possession of firearms and ammunition and possessing with intent to distribute crack cocaine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Darnell C. Butcher, 50, was previously found guilty of those crimes following a jury trail before U.S. District Judge Christopher Boyko.
"This defendant was a longtime scourge to the residents of Ravenna," Dettelbach said. "This sentence will make it easier for them to live, work and play in peace."
Butcher possessed a Tanfoglio Giuseppe, model GT32, .32 caliber pistol; a Ruger, model Mark II, .22 caliber pistol; an RG Industries, model RGI, .22 caliber pistol; and ammunition, on or about April 8, 2011, despite previous convictions for possession of cocaine and trafficking in cocaine, in the Court of Common Pleas of Portage County, Ohio.
On the same day, Butcher possessed with the intent to distribute approximately 12.1 grams of crack cocaine, according to court documents and testimony.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives - Youngstown Field Office, the Ravenna Police Department and the Metro SWAT Team. The matter was prosecuted by Assistant United States Attorneys Kelly Galvin and Chelsea Rice.
RBS Securities Japan Limited Agrees to Plead Guilty in Connection with Long-Running Manipulation of Libor Benchmark Interest RatesRead the Press Release
RBS Securities Japan Limited, a wholly owned subsidiary of The Royal Bank of Scotland plc (RBS), has agreed to plead guilty to felony wire fraud and admit its role in manipulating the Japanese Yen London Interbank Offered Rate (LIBOR), a leading benchmark used in financial products and transactions around the world, Assistant Attorney General Lanny Breuer of the Justice Department’s Criminal Division, Deputy Assistant Attorney General Scott D. Hammond of the Justice Department’s Antitrust Division and Special Agent in Charge Timothy A. Gallagher of the FBI’s Washington Field Office Criminal Division announced today.
A criminal information, being filed in U.S. District Court for the District of Connecticut, charges RBS Securities Japan with one count of wire fraud for engaging in a scheme to defraud counterparties to interest rate derivatives trades by secretly manipulating Yen LIBOR benchmark interest rates. RBS Securities Japan has signed a plea agreement with the government admitting its criminal conduct, and has agreed to pay a $50 million fine.
In addition, the government is filing a criminal information in the District of Connecticut which charges parent company RBS as part of a deferred prosecution agreement (DPA). The information charges RBS with wire fraud for its role in manipulating LIBOR benchmark interest rates, and with participation in a price-fixing conspiracy in violation of the Sherman Act by rigging the Yen LIBOR benchmark interest rate with other banks. The DPA requires the bank to admit and accept responsibility for its misconduct as described in an extensive statement of facts, to continue cooperating with the Justice Department in its ongoing investigation and to pay a $100 million penalty beyond the fine imposed upon RBS Securities Japan.
Together with approximately $462 million in regulatory penalties and disgorgement – $325 million as a result of a Commodity Futures Trading Commission (CFTC) action and approximately $137 million as a result of a U.K. Financial Services Authority (FSA) action – the Justice Department’s criminal penalties bring the total amount of the resolution with RBS and RBS Securities Japan to approximately $612 million.
“As we have done with Barclays and UBS, we are today holding RBS accountable for a stunning abuse of trust,” said Assistant Attorney General Breuer. “The bank has admitted to manipulating one of the cornerstone benchmark interest rates in our global financial system, and its Japanese subsidiary has agreed to plead guilty to felony wire fraud. The department’s ongoing investigation has now yielded two guilty pleas by significant financial institutions. These are extraordinary results, and our investigation is far from finished. Our message is clear: no financial institution is above the law.”
“RBS secretly rigged the benchmark interest rates upon which many transactions and consumer financial products are based,” said Deputy Assistant Attorney General Hammond. “RBS’ conduct not only harmed its unsuspecting counterparties, it undermined the integrity and the competitiveness of financial markets everywhere.”
“The manipulation of LIBOR by RBS and its subsidiary directly affected the rates referenced by financial products held by and on behalf of American companies and investors. The FBI works to uncover wrongdoing such as this in order to protect American consumers and the integrity of financial markets,” said Special Agent in Charge Gallagher. “Today’s announcement is the result of the hard work of the FBI special agents, financial analysts, and forensic accountants as well as the prosecutors who dedicated significant time and resources to investigating this case.”
According to court documents, LIBOR is an average interest rate, calculated based upon submissions from leading banks around the world, reflecting the rates those banks believe they would be charged if borrowing from other banks. LIBOR serves as the primary benchmark for short-term interest rates globally, and is used as a reference rate for many interest rate contracts, mortgages, credit cards, student loans and other consumer lending products. The Bank of International Settlements estimated that as of the second half of 2009, outstanding interest rate contracts were valued at approximately $450 trillion.
LIBOR, published by the British Bankers’ Association (BBA), a trade association based in London, is calculated for 10 currencies at 15 borrowing periods, known as maturities, ranging from overnight to one year. The LIBOR for a given currency at a specific maturity is the result of a calculation based upon submissions from a panel of banks for that currency (the Contributor Panel) selected by the BBA. From at least 2006 through 2010, RBS has been a member of the Contributor Panel for a number of currencies, including Yen LIBOR and Swiss Franc LIBOR, which are the focus of the plea agreement and DPA.
According to the DPA, at various times from at least 2006 through 2010, certain RBS Yen and Swiss Franc derivatives traders – whose compensation was directly connected to their success in trading financial products tied to LIBOR – engaged in efforts to move LIBOR in a direction favorable to their trading positions. Through these schemes, RBS allegedly defrauded counterparties who were unaware of the manipulation affecting financial products referencing Yen and Swiss Franc LIBOR. The alleged schemes included hundreds of instances in which RBS employees sought to influence LIBOR submissions in a manner favorable to their trading positions in two principal ways: internally at RBS through requests by derivatives traders for Yen and Swiss Franc LIBOR submissions, and externally through an agreement with a separately charged derivatives trader to request Yen LIBOR submissions. The trader, Tom Alexander William Hayes, was formerly employed by a Japanese subsidiary of another Contributor Panel bank, UBS AG (UBS).
According to the DPA, RBS employees engaged in this conduct through electronic communications, which included both emails and electronic chats. For example, in an electronic chat on March 16, 2009, an RBS Swiss Franc derivatives trader, (Trader-7), sought to benefit his trading book by asking the RBS LIBOR submitter (Submitter-1), “can we pls get a very very very low 3m [3 month] and 6m [6 month] fix today [please]” because “we have rather large fixings!” Submitter-1 responded, “perfect, if that’s what u want.” After thanking Submitter-1, Trader-7 informed Submitter-1 that “from tomorrow . . . we need them thru the roof!!!!!”
In another electronic chat on May 20, 2009, involving an RBS Yen derivatives trader, (“Trader-2”), Submitter-1, and others, the following exchange occurred:
Trader-2: high 3s and low 6s pls [Submitter-1]
Submitter-1: no problems
Trader-2: grazias amigo . . . where will you lower 6s to?
Submitter-1: 70
That day, RBS’s 6-month Yen LIBOR submission dropped two basis points from .72 to .70, before reverting to .72 the following two days.
RBS employees also allegedly furthered their collusive scheme with Hayes to fix the price of derivative instruments tied to Yen LIBOR through electronic communications. For instance, in an electronic chat on April 20, 2007, Hayes requested that an RBS derivatives trader, (“Trader-3”), ask Submitter-1 for a low 3 month Yen LIBOR submission:Hayes: . . . if you could ask your guys to keep 3m low wd be massive help as long as it doesn’t interfere with your stuff . . . tx in adavance.
Approximately 30 minutes later, Hayes and Trader-3 had the following exchange:
Hayes: mate did you manage to spk to your cash boys?
Trader-3: yes u owe me they are going 65 and 71
Hayes: thx mate yes i do . . . in fact i owe you big time
Approximately 45 minutes later, Hayes sent the following message to Trader-3:
Hayes: mater they set 64! . . . thats beyond the call of duty!
* * * *
Trader-3: no worriesBy entering into a DPA with RBS, the Justice Department credits RBS’ cooperation in disclosing LIBOR misconduct within the financial institution, recognizes the significant remedial measures undertaken by RBS’ management to enhance internal controls, and acknowledges the additional reporting, disclosure and cooperation requirements undertaken by the bank. The DPA does not prevent the Justice Department from prosecuting individuals for related conduct.
The pending charges against Hayes are merely accusations and he is considered innocent unless and until proven guilty.
The prosecution of RBS is being handled by Deputy Chief Patrick Stokes and Trial Attorney Gary Winters of the Criminal Division’s Fraud Section, and New York Field Office Assistant Chief Elizabeth Prewitt and Trial Attorneys Eric Schleef and Richard Powers of the Antitrust Division. Deputy Chiefs Daniel Braun and William Stellmach, Assistant Chief Rebecca Rohr and Trial Attorneys Luke Marsh and Alex Berlin of the Criminal Division’s Fraud Section, Trial Attorneys Daniel Tracer and Kristina Srica of the Antitrust Division, Jeremy Verlinda of the Antitrust Division’s Economic Analysis Group, Assistant U.S. Attorneys Eric Glover and Liam Brennan of the U.S. Attorney’s Office for the District of Connecticut and the Criminal Division’s Office of International Affairs have also provided valuable assistance in this matter. The investigation is being conducted by special agents, forensic accountants and intelligence analysts of the FBI’s Washington Field Office.
The investigation leading to these cases has required, and has greatly benefited from, a diligent and wide-ranging cooperative effort among various enforcement agencies both in the United States and abroad. The Justice Department acknowledges and expresses its deep appreciation for this assistance. In particular, the CFTC’s Division of Enforcement referred this matter to the department and, along with the FSA, has played a major role in the investigation. The Securities and Exchange Commission has also played a significant role in the LIBOR series of investigations. Various agencies and enforcement authorities from other nations are also participating in different aspects of the broader investigation relating to LIBOR and other benchmark rates, and the department is grateful for their cooperation and assistance.
This prosecution is part of efforts underway by 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. For more information about the task force visit: www.stopfraud.gov.Related Materials:
Deferred Prosecution Agreement
Plea Agreement and Statement of FactsPittsburgh Man Pleads Guilty in Cocaine Trafficking ConspiracyRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh pleaded guilty in federal court to a charge of violating federal narcotics trafficking laws, United States Attorney David J. Hickton announced today.
Donald Goodwine, 23, pleaded guilty to one count before United States District Judge Maurice B. Cohill.
In connection with the guilty plea, the court was advised that from May 2, 2012, to May 9, 2012, Goodwine conspired to distribute and possess with intent to distribute cocaine.
Judge Cohill scheduled sentencing for June 5, 2013, at 11 a.m. The law provides for a total sentence of up to 20 years in prison, a fine of up to $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pennsylvania State Police, and the Pittsburgh Bureau of Police conducted the investigation leading to the conviction in this case.
Philadelphia Teen Charged with String of Armed HoldupsRead the Press Release
Abdullah Sirleaf, 19, of Philadelphia, PA, was charged today by indictment with robbery and gun charges for holdups at six different business, in Philadelphia and Lansdowne, PA, in June and July of 2013, announced United States Attorney Zane David Memeger. Sirleaf is charged with the armed robberies of: Metro Self Storage, 2240 Island Ave., Philadelphia, on June 15, 2013; Gulla’s Auto Tag & Insurance, at 6301 Buist Avenue, Philadelphia, on June 17, 2013; the Sunoco gas station/convenience store, 2500 Island Avenue, Philadelphia, on June 21, 2013; Kerrs Building Materials, Inc., 1528 Washington Avenue, Philadelphia, on June 22, 2013; the 7-Eleven store, 1337 S. 58th Street, Philadelphia, on June 28, 2013; and the Papa John’s Pizza, 7 N. Lansdowne Avenue, Lansdowne, PA, on July 3, 2013.
If convicted of all charges,thedefendant faces a mandatory minimum term of 107 years in prison with a maximum of life. He would also face up to five years of supervised release, a possible fine, a $1,100 special assessment, and restitution.This case was investigated by the Federal Bureau of Investigation, Philadelphia Police Department, Lansdowne Police Department, the Philadelphia District Attorney=s Office, and the Delaware County District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Ewald Zittlau.
Click here to view the indictment
An Indictment or an Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia Businessman and New Jersey Lawyer Convicted in Manhattan Federal Court in Connection with Multiple Investment Fraud SchemesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that a jury found TYRONE L. GILLIAMS, JR., a Philadelphia businessman, and EVERETTE L. SCOTT, JR., a New Jersey attorney, guilty yesterday afternoon on fraud charges stemming from two separate schemes. In the larger of the two schemes, the defendants solicited and misappropriated $5 million in investments in a bogus United States Treasury Strips investment program. In the other scheme, the defendants solicited and misappropriated a $450,000 investment in a Utah coal mine. In addition to buying luxury cars, jewelry, and other items, GILLIAMS spent hundreds of thousands of dollars of investor money organizing and promoting a multi-day festival in Philadelphia that headlined Sean “Diddy” Combs. GILLIAMS and SCOTT were convicted after a two-week trial before U.S. District Judge Deborah A. Batts.
Manhattan U.S. Attorney Preet Bharara stated: “Tyrone Gilliams may have had his 15 minutes of fame as a result of his flagrant, multi-million dollar deception, but now he and his partner in crime face a significantly longer time to pay the price of their fraud.”
According to the Indictment and the evidence presented at trial:
In 2009 and 2010, GILLIAMS was the owner of TL Gilliams, LLC, which purported to engage in transactions in commodities like oil and gold. SCOTT was an attorney at a small law firm in New Jersey and acted as TL Gilliams’s general counsel.
In the summer of 2010, GILLIAMS solicited $5 million dollars from two investors for purposes of trading in U.S. Treasury Strips, which are a derivative of U.S. Treasury Bonds. GILLIAMS and SCOTT arranged for the investors to make their investments by wiring them into an attorney trust account maintained by SCOTT’s law firm. Upon receiving the money, SCOTT – at GILLIAMS’ direction – misappropriated more than $700,000 to satisfy expenses stemming from an unrelated and failed venture to buy a coal mine in Utah. SCOTT also claimed $50,000 of the investment money for himself as purported fees. At GILLIAMS’ direction, SCOTT transferred most of the remainder to bank and brokerage accounts that he controlled.
At most, GILLIAMS purchased $250,000 worth of Treasury Strips with the more than $4 million in investment money transferred by SCOTT. Over a span of less than six months, GILLIAMS spent more than $1.6 million on an unrelated gold investment; more than $200,000 to purchase a commercial warehouse in Denver; at least $100,000 to buy or lease luxury cars; at least $50,000 for construction work on his home; at least $100,000 on luxury hotel and travel expenses; and more than $500,000 promoting both a festival called “Joy to the World” involving an album release party with Jamie Foxx at the Vault nightclub in Philadelphia, and culminating in a red carpet, black tie gala at the Philadelphia Ritz-Carlton, headlined for a $120,000 fee by Sean “Diddy” Combs, and a December 2010 December 2010 comedy performance in Nassau, Bahamas called the “Gatta Be Jokin’ Comedy Jam.”
GILLIAMS did not engage in any trading of Treasury Strips and, as a result, did not derive any profits. Nonetheless, during the period when he was spending investor money, GILLIAMS provided them with false reports of trades and profits, and made occasional, nominal payments that he falsely claimed represented profits from Treasury Strips trading. Other than these purported profit payments, which totaled approximately $100,000, neither investor received any of their combined $5 million investment back.
In a separate scheme, GILLIAMS and SCOTT arranged in late 2009 for an investor to transfer $450,000 to SCOTT’s attorney trust account, to be held in escrow until used in connection with a venture to purchase the assets of a bankrupt Utah coal mine. Once the money was in SCOTT’s account, he secretly misappropriated approximately $112,000 by claiming it as purported fees, and transferred the rest to GILLIAMS or other individuals and entities at GILLIAMS’direction. Until August 2010, GILLIAMS and SCOTT falsely assured the victim that his $450,000 remained safely in escrow, long after SCOTT’s escrow account had been emptied. Although the victim repeatedly demanded the return of his funds, GILLIAMS and SCOTT pacified him by producing forged bank documents and a false attorney attestation letter written by SCOTT purporting to show that GILLIAMS was in possession of the millions of dollars necessary to purchase and operate the Utah coal mine. In August 2010, after an attorney for the victim threatened SCOTT with professional discipline for his failure to return the escrowed funds, GILLIAMS and SCOTT paid the victim $450,000 using funds they raised for investment in Treasury Strips.
GILLIAMS, 45, of Philadelphia, Pennsylvania, and SCOTT, 51, of Sewell, New Jersey, were each convicted of one count of securities fraud and two counts of wire fraud. Each count carries a maximum potential penalty of 20 years in prison. They also each face a maximum fine of $5 million or twice the gross gain or loss from the offense on the securities fraud count, and of $250,000 or twice the gross gain or gross loss from the offense on each wire fraud count. GILLIAMS and SCOTT are scheduled to be sentenced on September 17, 2013, at 10:30 a.m., and September 24, 2013, at 10:30 a.m., respectively, before Judge Batts.
Mr. Bharara praised the work of the Criminal Investigators of the United States Attorney's Office and the Federal Bureau of Investigation, which jointly investigated this case. He also thanked the U.S. Securities and Exchange Commission.
This case was brought in coordination with President Barack Obama's Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case is being handled by the Office's Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Michael A. Levy and David B. Massey are in charge of the prosecution.
Parkville Woman Pleads Guilty to Conspiracy to Produce Child PornographyRead the Press Release
Baltimore Maryland - Margaret Ellen Jones, age 37, of Parkville, Maryland, pleaded guilty today to conspiracy to produce child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief James W. Johnson of the Baltimore County Police Department.
According to the plea agreement, at some time prior to March 2010, Jones met John Andrew Blaes online and became involved in a sexual relationship involving bondage, discipline, sadism, and masochism (BDSM). Jones subsequently moved into Blaes’ home in Parkville. During this time, including in July 2011, Blaes used the Internet to contact other women and girls to recruit them into the BDSM lifestyle.
On July 5, 2011, Blaes contacted the victim, a minor female who was 15 years old at the time, and solicited her to engage in sexual conduct with him and Jones. Blaes and Jones knew that the victim was a vulnerable minor. As part of the solicitation process, Blaes and Jones sent pornographic pictures of themselves to the victim using the computer.
On July 22, 2011, Blaes and Jones traveled from Maryland to the victim’s home in North Carolina to bring her to live with them in Parkville. After picking the victim up in North Carolina, Blaes and Jones sexually abused the victim in the back of their vehicle. The next day, Blaes and Jones rented a hotel room in North Carolina for the purpose of engaging in sexually explicit conduct with the victim. Blaes and Jones used a camera to document the sexual abuse of the victim in the van and the hotel. The images captured by Blaes and Jones include sadistic and masochistic conduct.
From approximately July 22, 2011 to November 20, 2011, Blaes and Jones engaged in sex acts with the victim multiple times a week. Blaes also cut the victim and held lemons to her injuries. The victim was instructed to call Blaes “master” or “sir,” and to call Jones “mistress.” Blaes and Jones referred to the victim as their “slave.” Blaes and Jones instructed the victim to keep the sexual conduct and her age a secret and the victim was kept in their residence or in their control at all times and was not enrolled in school.
Blaes and Jones used a camera and cell phones to document their sexual abuse of the victim and to photograph her in sexually explicit poses. Blaes distributed the sexually explicit images of the victim online for the purpose of recruiting other individuals into his BDSM lifestyle with Jones.
As part of her plea agreement, Jones must register as a sex offender in the place where she resides, where she is an employee, and where she is a student, under the Sex Offender Registration and Notification Act (SORNA).
Jones faces a minimum mandatory sentence of 15 years and a maximum of 30 years in prison for conspiracy to produce child pornography, followed by up to lifetime of supervised release. U.S. District Judge James K. Bredar has scheduled sentencing for June 11, 2013 at 4:00 p.m.
John Andrew Blaes, age 49, also of Parkville, Maryland, previously pleaded guilty to the conspiracy and to transporting a minor to engage in sexually explicit conduct. Blaes is scheduled to be sentenced on February 19, 2013, at 2:00 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, HSI Baltimore, and the Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Rachel M. Yasser and Judson T. Mihok, who are prosecuting the case.
Oxycodone Trafficker Sentenced to 10 YearsRead the Press Release
SAN FRANCISCO - Ella Mae Simpson, 55, of Hayward, Calif., was sentenced yesterday to 10 years in prison for conspiracy to possess with intent to distribute and distribution of oxycodone, possession with intent to distribute and distribution of oxycodone, and possession with intent to distribute oxycodone, United States Attorney Melinda Haag announced.
On May 18, 2012, before U.S. District Court Judge Susan Illston, Simpson pled guilty to one count of conspiracy to possess with intent to distribute and to distribute oxycodone in violation of Title 21, U.S.C. § 846; three counts of possession with intent to distribute and distribution of oxycodone in violation of Title 21, U.S.C. §§ 841(a)(1), (b)(1)(C); and one count of possession with intent to distribute oxycodone in violation of Title 21, U.S.C. §§ 841(a)(1), (b)(1)(C). Simpson admitted that, between April 5, 2011, and June 9, 2011, she conspired with others to possess with intent to distribute and she conspired to distribute oxycodone. Simpson further admitted that on three separate dates between April 5, 2011, and June 8, 2011, she distributed oxycodone and that on June 9, 2011, she possessed oxycodone with the intent to distribute it, all in the Northern District of California. On June 9, 2011, law enforcement officers seized $235,524 along with a firearm from Simpson’s residence. There was no plea agreement.
At the sentencing hearing, Judge Illston also ordered the forfeiture of the $235,524 and imposed a three-year period of supervised release. Simpson was ordered to surrender to the Bureau of Prisons on March 22, 2013.
Denise Marie Barton and Katherine Dowling are the Assistant U.S. Attorneys who prosecuted the case with the assistance of AUSAs Patty Kenney, Dave Countrymen, Arvon Perteet and Alicia Jusey of the Asset Forfeiture Unit; and Maryam Beros and Rawaty Yim. The prosecution is the result of a lengthy investigation by the Federal Bureau of Investigation, Drug Enforcement Agency, and the Department of Health and Human Services.
(Simpson Superseding Indictment )