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25 March 2013
Martin Man Pleads Guilty to Controlled Substance ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that Michael James Poor Thunder, age 23, of Martin, South Dakota appeared before U.S. Magistrate Judge Veronica L. Duffy on March 20, 2013 and pled guilty to distribution of a controlled substance. The maximum penalty upon conviction is 20 years’ imprisonment and/or a $1,000,000 fine.
On March 7, 2012 Poor Thunder distributed morphine in Martin, South Dakota. The investigation was conducted by the Unified Narcotics Enforcement Team, South Dakota Division of Criminal Investigation, and Martin Police Department. The case is being prosecuted by Assistant U.S. Attorney Ted L. McBride.
A presentence investigation was ordered and a sentencing date has been set for July 15, 2013. The defendant was released on bond pending sentencing.
Manhattan U.S. Attorney Announces Guilty Plea of Ahmed Warsame, A Senior Terrorist Leader and Liaison Between Al Shabaab and Al Qaeda in the Arabian Peninsula for Providing Material Support to Both Terrorist OrganizationsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York and John Carlin, Acting Assistant Attorney General for National Security, announced today the unsealing of the guilty plea of AHMED ABDULKADIR WARSAME to a nine-count Indictment charging him with providing material support to al Shabaab and al Qaeda in the Arabian Peninsula (“AQAP”) - two designated foreign terrorist organizations - as well as conspiring to teach and demonstrate the making of explosives, possessing firearms and explosives in furtherance of crimes of violence, and other violations. WARSAME pled guilty on December 21, 2011, before U.S. District Judge Colleen McMahon in Manhattan federal court, pursuant to a cooperation agreement with the United States.
WARSAME, a Somali national in his mid-twenties, was captured in the Gulf of Aden between Somalia and Yemen by the U.S. military on April 19, 2011, and was questioned for intelligence purposes for more than two months. Thereafter, WARSAME was read his Miranda rights and, after waiving those rights, he spoke to law enforcement agents for several days. WARSAME arrived in the Southern District on July 5, 2011.
Manhattan U.S. Attorney Preet Bharara said: “The capture of Ahmed Warsame and his lengthy interrogation for intelligence purposes, followed by his thorough questioning by law enforcement agents, was an intelligence watershed. The handling of Warsame represents a seamless orchestration by our military, intelligence, and law enforcement agencies that significantly furthered our ability to find, fight and apprehend those who wish to do us harm. Warsame’s capture, cooperation, and prosecution is a major victory for the United States, for its citizens, and for justice.”
Acting Assistant Attorney General for National Security John Carlin said: “Ahmed Warsame served as a critical link between two foreign terrorist organizations and was an operational terrorist leader, commanding hundreds of fighters. His capture, successful interrogation and guilty plea demonstrate how U.S. military, intelligence and law enforcement assets coordinate to neutralize threats and protect the country. I thank all those responsible for this important operation.”
According to the Indictment, WARSAME’s sworn guilty plea allocution before Judge McMahon, and other public information:
From 2007 until April 2011, WARSAME conspired with others, including American citizens, to provide material support to al Shabaab. He fought as a soldier on behalf of al Shabaab in Somalia in 2009 and provided other forms of support to the terrorist organization, including explosives, weapons, and training. In addition, WARSAME possessed and used destructive devices, machine guns, and an AK-47 semi-automatic assault weapon in Somalia in support of al Shabaab.
WARSAME also brokered a weapons deal, arranging for al Shabaab to purchase weapons directly from AQAP. From 2009 until April 2011, he conspired with others, including American citizens, to provide material support to AQAP, in the form of money, training, communications equipment, and personnel. While WARSAME was in Yemen in 2010 and 2011, he received weapons, explosives, and other military-type training from the terrorist organization. In addition, he possessed and used grenades and an AK-47 semi-automatic assault weapon in Yemen in support of AQAP.
From 2010 until April 2011, WARSAME conspired to teach and demonstrate the making of explosives and instruct other terrorists and would-be terrorists how to do so. Specifically, WARSAME received training in explosives directly from members of AQAP, intending to share that training with al Shabaab when he returned to Somalia.
WARSAME was captured at sea by the U.S. in April 2011 on his way back to Somalia from Yemen.
Al Shabaab was designated by the U.S. Department of State as a foreign terrorist organization in February 2008. AQAP was so designated in January 2010.
WARSAME pled guilty to all nine counts of the Indictment with which he was charged, and he faces the possibility of life in prison. The charges and maximum penalties are reflected in the attached chart.
Mr. Bharara praised the extraordinary investigative work of the FBI’s Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD. He also thanked the Department of Defense and the National Security Division of the Department of Justice.
This case is being handled by the Terrorism and International Narcotics Unit of the U.S. Attorney’s Office for the Southern District of New York, with assistance from the Counterterrorism Section of the Justice Department’s National Security Division. Assistant U.S. Attorneys Benjamin Naftalis, Adam S. Hickey, Sean S. Buckley, and Anna Skotko are in charge of the prosecution.
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U.S. v. Ahmed Warsame Indictment
Lower Brule Man Charged with Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota man has been indicted by a federal grand jury. Richard Johnson, age 49, was indicted by a federal grand jury on March 13, 2013 for Sexual Abuse of a Minor. Johnson appeared before U.S. Magistrate Judge Mark A. Moreno on March 20, 2013 and pled not guilty to the Indictment.
The maximum penalty upon conviction is any term of years up to life imprisonment, $250,000 fine, or both; a mandatory minimum term of supervised release of 5 years up to a maximum of life. If Johnson is found to have violated any condition of his supervised release, he may be incarcerated for an additional term of 2 years for each violation with one exception. If Johnson commits a new felony violation of chapter 109A (sexual abuse), chapter 110 (sexual exploitation and other abuse of children), chapter 117 (transportation for illegal sexual activity and related crimes), section 1201 (kidnaping), or section 1591 (sex trafficking of children or by force, fraud, or coercion), while on supervised release, he may be incarcerated for a mandatory minimum term of 5 years up to life for each violation. Restitution and $100 to the Victim Assistance Fund may also be ordered.
The charge is merely an accusation, and Johnson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs and Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case. Johnson was released on bond pending trial which has been set for May 14, 2013.
Lower Brule Man Charged with Assaulting, Resisting and Impeding A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota man has been indicted by a federal grand jury.
Marty LaRoche, age 19, was indicted by a federal grand jury on March 13, 2013 for Assaulting, Resisting and Impeding a Federal Officer. LaRoche appeared before U.S. Magistrate Judge Mark A. Moreno on March 20, 2013 and pled not guilty to the Indictment. The maximum penalty upon conviction is 8 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment may also be ordered.
The charge is merely an accusation, and LaRoche is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs and Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case. LaRoche was remanded to the custody of the U.S. Marshal Service pending trial which has been set for May 14, 2013.
Little Eagle Man Arraigned on Assault ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that a Little Eagle, South Dakota man has been indicted by a federal grand jury for Assault Resulting in Serious Bodily Injury.
Ira D. Weasel, age 32, was indicted by a federal grand jury on March 13, 2013. He appeared before U.S. Magistrate Judge William D. Gerdes on March 20, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 10 years' imprisonment, a $250,000 fine or both, and a period of supervised release of 3 years. The charge is merely an accusation and Weasel is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy Morley is prosecuting the case.
Weasel was released on bond pending trial, which has been set for May 21, 2013.
Leader of PCP Distribution Conspiracy Exiled to over 15 Years in PrisonRead the Press Release
Arrested en Route to Robbing a Cocaine DealerGreenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Robert Lee Jones, age 26, of Capitol Heights, Maryland, today to 188 months in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute phencyclidine (PCP), possession with intent to distribute crack cocaine; being a felon in possession of a firearm; and conspiracy to use and carry a firearm in relation to a crime of violence.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to his plea agreement, from January 2008 through February 2012, Jones conspired to sell PCP at the Central Gardens Apartment complex in Capitol Heights. Jones periodically lived in the apartment complex. The conspirators used violence or threatened to use violence to control their territory and prevent competition from other drug dealers. Over the course of the conspiracy, Jones, either alone or with another conspirator, sold PCP to a confidential source on at least 18 occasions. Jones was responsible for the distribution of between one and three kilograms of PCP.
Jones and two co-conspirators, who were armed with firearms, were arrested on February 10, 2012 on the way to a planned robbery of a cocaine dealer. Law enforcement executed a search warrant at the Central Gardens apartment where Jones was living at the time and seized a 5.56 caliber semi-automatic rifle along with a 30 and 100 round magazine; 22 rounds of various caliber ammunition; approximately 98 grams of crack cocaine; at least 211 grams of PCP; and drug paraphernalia.
Jones was previously convicted of a felony and was prohibited from possessing firearms or ammunition.
United States Attorney Rod J. Rosenstein commended the ATF, Prince George’s County Police Department and Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Steven E. Swaney, who prosecuted the case.
Last of Los Zetas Money Launderers Ordered to PrisonRead the Press Release
LAREDO, Texas – Laredoans Laurencio Montes, 43, and Jose Luis Gonzales, 28, have been sent to federal prison for their roles in an Organized Crime Drug Enforcement Task Force (OCDETF) investigation relating to the laundering of millions of drug proceeds by Los Zetas, United States Attorney Kenneth Magidson announced today. Montes, aka “Yeyo,” and Gonzalez each entered a plea of guilty to one count of conspiracy to launder drug proceeds on Oct. 30, 2012.
Today, U.S. District Court Judge Marina Garcia Marmolejo sentenced Montes, considered to be an organizer, to 120 months in federal prison. A final order of forfeiture was further ordered in the amount of $6 million against him. Gonzales, determined to be a minimal participant in the conspiracy, received a 60-month term of imprisonment to be followed by three years of supervised release. The court entered a final order of forfeiture against Gonzales in the amount of $2,999,319.
OCDETF Operation El Chacal was initiated in 2010 and culminated in several indictments being returned in November 2011 in Laredo and San Antonio as well as Chicago, Ill. Agents had identified a Los Zetas cell leader of a significant money laundering organization based in Nuevo Laredo, Tamaulipas, Mexico who laundered drug proceeds for the Zeta drug trafficking organization. The investigation revealed the organization shipped multiple loads of cocaine from Mexico to major distribution centers in the United States such as Chicago, Philadelphia, Pa., and Dallas.
The organization fronted the cocaine loads to distributors and, after the sale and distribution of the drugs, awaited the collection of drug proceeds and resulting payments. A co-conspirator based in Chicago distributed the cocaine and collected the proceeds, while co-conspirators in Dallas and Chicago collected, stored and prepared the drug proceeds for transportation to Laredo and Eagle Pass and then to into Mexico.
During the course of the investigation, a total of approximately $21 million was seized from various tractor trailer drivers, other couriers and stash homes in the Texas and Illinois which was destined to be transported into Mexico for delivery to the Zeta drug trafficking organization.
Montes was identified as a co-conspirator who recruited truck drivers to transport bulk cash drug proceeds for the Organization and coordinated the cash deliveries from the Chicago area to Laredo totaling approximately $6 million. Gonzales was identified as a facilitator who assisted his brother-in-law and co-defendant Nelson Casarez at a Laredo truck yard where bulk cash was delivered by truck drivers. Gonzales assisted Casarez in receiving the money in Laredo and safekeeping it until other co-conspirators were sent to pick it up and transport it to Nuevo Laredo, Mexico.
These sentencings mark the sixth and seventh defendants to be convicted and sentenced in Laredo relating to this indictment.
Other co-defendants who have entered pleas of guilty to the money laundering conspiracy and have been sentenced include Casarez, 35, Josue Alejandro Salinas, 22, Miguel Santos, 42, all of Laredo; David Villarreal, 40, a Mexican National; and Jose Vasquez, 44, a Honduran National.
Judge Marmolejo sentenced Vasquez, Villarreal and Salinas to respective terms of 87, 97 and 84 months in September 2012. The next month, Casarez received a sentence of 108 months and was assessed a $5,000 fine, while Santos was ordered to serve a 72-month term of imprisonment. Final orders of forfeiture were also entered against all men ranging from nearly $1.5 million to $4 million.
The case was investigated by agents of the Drug Enforcement Administration and Internal Revenue Service – Criminal Investigation and prosecuted by Assistant United States Attorney Mary Lou Castillo.
Largo Puppeteer Pleads Guilty to Possession and Receipt of Child PornographyRead the Press Release
Tampa, FL - United States Attorney Robert E. O'Neill announces that Ronald William Brown (57, Largo) today pleaded guilty to an eight count Superseding Indictment charging him with three counts of possession of child pornography and five counts of receipt of child pornography. He faces a maximum penalty of 10 years in federal prison for each possession count, and a mandatory minimum of 5 years, up to 20 years’ imprisonment for each receipt offense.
Brown was arrested at this home in July 2012 on federal charges stemming from a multi-jurisdiction child pornography investigation.
This case was investigated by U.S. Immigration and Customs Enforcement's Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Amanda C. Kaiser.
It is another case 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.
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Justice Department Reaches Settlement with Georgia Company to Resolve Immigration-related Unfair Employment PracticesRead the Press Release
The Justice Department announced today that it reached an agreement with Poulan Pecan, resolving allegations that the company violated the anti-discrimination provision of the Immigration and Nationality Act (INA). Poulan Pecan is a supplier of pecans located in Poulan, Ga.
The Justice Department’s Civil Rights Division initiated its investigation of Poulan Pecan in 2012, based on a claim by an individual who called a department hotline and complained that the pecan-producing company requested specific documentation from her to establish her work authorization. The department’s investigation concluded that Poulan Pecan discriminated against work-authorized non-U.S. citizens by requiring specific and more documents than necessary from them when completing the Form I-9, Employment Eligibility Verification, while not imposing similar requirements of U.S. citizens.
Under the terms of the agreement, Poulan Pecan will pay $500 in civil penalties and be subject to monitoring of its employment eligibility verification practices for a period of one year. Designated Poulan Pecan officials have already completed training by the Justice Department on the anti-discrimination provision of the INA. The case settled prior to the Justice Department filing a complaint in this matter.
“Individuals should be treated equally during the employment eligibility verification process,” said Gregory Friel, Deputy Assistant Attorney General for the Civil Rights Division. “This means not placing additional requirements, documentary or otherwise, on individuals based on their citizenship status.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. For more information about protections against employment discrimination under the immigration laws, call the OSC’s worker hotline at 1-800-255-7688 (1-800-237-2525, TDD for hearing impaired), call the OSC’s employer hotline at 1-800-255-8155 (1-800-362-2735, TDD for hearing impaired), sign up for a no-cost webinar at www.justice.gov/about/osc/webinars.php , email [email protected] or visit the website at www.justice.gov/crt/about/osc .
Justice Department Files Motion to Dismiss Antitrust Lawsuit<br /> Against Blue Cross Blue Shield of Michigan After Michigan Passes<br /> Law to Prohibit Health Insurers from Using<br /> Most Favored Nation Clauses in Provider ContractsRead the Press Release
WASHINGTON – The Department of Justice today filed a motion to dismiss its antitrust lawsuit against Blue Cross Blue Shield of Michigan (BCBSM) after the state of Michigan passed a law that prohibits health insurers from using most favored nation clauses (MFN) in contracts with health care providers. In its lawsuit, the department challenged BCBSM’s use of MFNs, alleging that its agreements with hospitals raised hospital prices charged to other insurers, prevented insurers from entering local markets and discouraged discounts. The department said the combination of the new law and a previous order by the Michigan Insurance Commissioner that prohibits MFN clauses in health insurer’s provider contracts provides the relief the department sought in its lawsuit against BCBSM, rendering further proceedings unnecessary.
The department and the state of Michigan’s Attorney General today filed a stipulated motion requesting that the U.S. District Court for the Eastern District of Michigan in Detroit dismiss the lawsuit without prejudice. BCBSM joined in the motion. The department’s Antitrust Division, along with the state of Michigan, originally filed its lawsuit on Oct. 18, 2010.
“The Department of Justice’s antitrust lawsuit alleged that Blue Cross Blue Shield of Michigan’s MFN clauses likely raised health care costs, harmed consumers and prevented other health plans from entering local markets,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The law just enacted by Michigan addresses the department’s concerns by eliminating MFNs and ensuring that Michigan consumers will benefit from enhanced health insurance competition.”
In the healthcare context, MFN provisions generally refer to contractual clauses between health insurance plans (buyers) and healthcare providers (sellers) that essentially guarantee that no other plan can obtain a better rate than the plan wielding the MFN.On March 18, 2013, the state of Michigan enacted legislation that, among other reforms, prohibits health insurers, including BCBSM, from including or using MFNs in provider contracts. The MFN ban takes effect on Jan. 1, 2014. Since Feb. 1, 2013, the Michigan Insurance Commissioner’s order has prohibited all MFN clauses in any health insurer’s provider contracts.
The department and the state of Michigan alleged in their complaint that the MFN clauses in BCBSM’s contracts with Michigan hospitals decreased competition among health plans. Some of BCBSM’s MFN clauses required hospitals to charge BCBSM’s competitors at least as much as the hospitals charged BCBSM. Other BCBSM MFN clauses required hospitals to charge competitors more than the hospitals charged BCBSM, often by a specified percentage. Moreover, BCBSM often agreed to raise the prices that it paid hospitals, in part to obtain MFN clauses.
At trial, the department and the Michigan Attorney General intended to demonstrate that BCBSM’s MFN clauses reduced competition between BCBSM and its rival insurers and discouraged other health plans from entering or expanding in markets throughout Michigan, which increased prices self-funded employers and their employees paid to hospitals, and likely increased prices other Michigan residents and their employers paid to health plans and hospitals.
The Antitrust Division continues to investigate the use of MFN clauses in health plan contracting in other areas. The department has observed that MFN clauses used by health plans that have market power in the sale of health insurance can reduce competition by, for example, encouraging hospitals to contract with smaller health plans at higher rates or through less efficient reimbursement models. The department remains committed to challenging any anticompetitive use of MFN clauses by health plans. The division has seen increased awareness of the potential anticompetitive effects of MFN clauses. For example, insurers in areas such as North Carolina have recently stopped using MFN clauses in their contracts with hospitals and other providers.Blue Cross Blue Shield of Michigan is a Michigan nonprofit healthcare corporation headquartered in Southfield, Mich. It is the largest provider of commercial health insurance in Michigan.
The case remains open until the court acts on the stipulated motion for dismissal without prejudice.
Jury Convicts Remaining Defendants for Area Armed Bank RobberiesRead the Press Release
HOUSTON – The two remaining defendants standing trial for their involvement in the armed robbery of several Houston-area banks have been convicted on all counts as charged, United States Attorney Kenneth Magidson announced today along with FBI Special Agent in Charge Stephen Morris. Early this afternoon, the federal jury convicted Larry Smith, 37, and Raymond Tierra Johnson, 32, each of one count of conspiracy as well as seven and two counts of bank robbery, respectively, after five days of trial and less than two hours of deliberations. Both were also convicted of using a firearm during and in furtherance of a bank robbery.
“Let these guilty verdicts send a strong message,” said Morris. “The old fashioned crime of bank robbery is one that doesn’t pay. The FBI will continue to work alongside our local law enforcement partners in the FBI Bank Robbery Task Force to ensure violent criminals are brought to justice.”
A total of 14 defendants were charged with their respective involvements in a series of armed bank robberies of Houston area banks including the robbery of the Pearland Chase branch bank on Dec. 31, 2010. Jeremy Benton, 22, was charged by information and later pleaded guilty, while Smith, Johnson and 11 others were charged in a superceding indictment returned July 6, 2011. Glenn Bonner, 41, pleaded guilty on the first day of trial last week. Co-defendants Gregory Wayne Ferguson, 20, Arlington Davis Wilkes aka AD, 22, Carl Ray Turner Jr. aka CT, 26, Edward Johnson, 28.,John Berley Scott aka Fresh, 31, Derrick Lashon Paley aka Crybaby, 34, Michael Maurice Wilson Jr. aka Blue/Mikey Poo, 26, Roderick Marshall Beagle, 40, Michael Dushon Duncan aka Mikey, 21, and Kelvin Dewayne Thomas aka Little Kevin, 22, each had previously entered guilty pleas.
Smith was convicted today of committing bank robbery of the Wells Fargo branches on 10978 Grant Road and 13150 Louetta on Aug. 23, 2010, and Nov. 2, 2010, respectively, Wells Fargo locations at 14001 Memorial and 12859 Kimberly Lane in Houston, both on Oct. 7, 2010, the Comerica Bank on Sept. 13, 2010, and the Citibank at 14104 NW Freeway. The jury found he used a firearm in the offenses on Sept. 14 and Nov. 2, 2010. Both defendants were convicted of robbing the Chase Bank at 24230 Northwest Freeway in Cypress and for using a firearm in the offense. Johnson was convicted of bank robbery for the Dec. 31, 2010, robbery of the Chase Bank at 1915 North Main in Pearland and for using a firearms in the commission of that crime.
The conspiracy involved “casing” banks for robberies and the selection of banks that did not have security guards or bullet resistant bandit barriers Evidence at trial indicated the conspirators used lookouts during robberies and used stolen or “hot” cars as get-a-way vehicles to commit the offenses. The conspirators recruited others to assist them to rob the banks in exchange for a share of the proceeds taken.
Evidence and testimony revealed most bank robberies were effected through the use of demand notes that Smith had written and through the brandishing and firing of firearms during the course of the robbery to ensure compliance with their demands.
Testimony revealed some of the violence witnessed by those in the banks and the threats made to gain compliance. One witness described the event as a life changing experience.
For the conviction of conspiracy to commit bank robbery, both face a maximum punishment of five years imprisonment and/or a $250,000 fine. Each conviction of bank robbery also carries a maximum punishment of 20 years incarceration (or 25 years if firearms displayed). Discharging a firearm during and in furtherance of a bank robbery carries a mandatory punishment of 10 years on each conviction which must be served consecutive to any sentences imposed for the underlying bank robbery convictions.
The charges against these defendants are the result of a federal investigation conducted by the FBI with the substantial assistance and cooperation of the Houston Police Department, Harris County Sheriff’s Office, Harris County Precinct 4 Constable’s Office, Harris County District Attorney’s Office, Crimestoppers, Friendswood Police Department, Pearland Police Department and the Brazoria County District Attorney’s Office. The United States Attorney wishes to recognizes each of these investigative agencies as well as the security departments of Wells Fargo and JP Morgan Chase for their outstanding efforts.
Assistant U.S. Attorneys Suzanne Elmilady and Kebharu Smith are prosecuting the case.
Judge Sentences Oil City Man to Prison for Possessing Child PornographyRead the Press Release
ERIE, Pa - A former resident of Oil City, Pennsylvania, has been sentenced in federal court to 37 months in jail on his conviction of violating federal laws relating to the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge Sean J. McLaughlin imposed the sentence on Joseph Martin Glass, 53.
According to information presented to the court, Glass possessed computer images depicting minors engaging in sexually explicit conduct.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Department of Homeland Security, Immigration and Customs Enforcement and the Pennsylvania State Police for the investigation leading to the successful prosecution of Glass.
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.justice.gov/psc.
Husband and Wife Sentenced for Various Tax CrimesRead the Press Release
HOUSTON - Married couple James R. Dixon and Sharon C. Dixon have each been ordered to prison for committing separate tax crimes in two separately-filed, but related cases, United States Attorney Kenneth Magidson announced today along with Lucy Cruz, special agent in charge of Internal Revenue Service-Criminal Investigation. Both entered guilty pleas on their respective cases in October 2012.
Today, U.S. District Judge Vanessa Gilmore sentenced James Dixon to a term of 33 months in federal prison to be followed by three years of supervised release. He further ordered him to pay $1,397,511.30 in restitution.
U.S. District Judge Kenneth M. Hoyt sentenced Sharon Dixon on Feb, 27, 2013, to a term of 11 months in prison and ordered her to pay restitution in the amount of $183,801.39. Sharon Dixon pleaded guilty to two counts of willfully failing to file her U.S. Individual Income Tax Returns for 2007 and 2008.
James Dixon was convicted of one count of tax evasion, admitting that in an attempt to evade his and his spouse's full income tax liability for 2006, he willfully failed to report additional income of approximately $255,966.36 on his joint 2006 U.S. Individual Income Tax Return. Dixon admitted the additional income tax owed for his joint 2006 income tax year is approximately $59,379.05. For sentencing purposes, he stipulated the total relevant conduct, tax loss in the case, exceeds $890,000.
According to the plea agreement, the $890,000 includes the individual income taxes Dixon and his wife owe on their 2005 through 2008 income tax years plus more than $700,000 of unpaid employment taxes of a company for which James Dixon had the duty to pay over to the IRS. Dixon further agreed to pay restitution to the IRS of more than $1.3 million.
Previously released on bond, James Dixon was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Sharon Dixon was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
This matter was investigated by IRS-CI and is being prosecuted by Assistant U.S. Attorney Charles J. Escher.
Henrico Car Dealer Pleads Guilty to Evading $698,000 in Taxes Owed to the IRSRead the Press Release
RICHMOND, Va. – Samad Jafari, 55, of Henrico, Va., pleaded guilty today to tax evasion as part of a multi-year scheme involving his used car sales business known as United Import Company, Ltd. (United Import). In addition, United Import plead guilty to structuring cash deposits to prevent banking institutions from reporting currency transactions to the Internal Revenue Service (IRS).
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; and Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service Criminal Investigation’s Washington, D.C., Field Office, made the announcement after the plea was accepted by United States District Judge Henry E. Hudson.
Jafari and United Import were charged by a criminal information filed on March 5, 2013. Jafari faces a maximum penalty of five years in prison when he is sentenced on June 21, 2013. The corporation faces a fine of up to $500,000, as well as imposition of a forfeiture monetary judgment for the amount of money involved in the illegal structuring activity.
In a statement of facts filed with plea agreements for both defendants, Jafari admitted he was the owner and operator of United Import, which has been in business since 1999. Jafari was the sole signatory and owner of a business account in the name of United Import. Beginning in 2006, Jafari developed a scheme to receive cash payments for the financing of used cars, and subsequently structured cash deposits into the business account, as well as other personal bank accounts. Jafari also created a second set of figures to provide to his accountant in preparing his 2006 and 2007 returns, which significantly understated the amount of cash payments he received for vehicle financing. The total tax loss identified in the investigation was in excess of $698,000.
In addition, Jafari – acting as President of United Import - structured or caused to be structured, over $735,000 in cash deposits during a 24-month time period in an effort to prevent banking institutions from filing a “Currency Transaction Report” or CTR. Banks are required to file CTRs under the Bank Secrecy Act for cash transaction in excess of $10,000, and the forms are used to detect criminal activity, including tax evasion. To avoid the reporting requirement, which had the potential to alert the authorities to the actual amount of cash he had received, Jafari broke deposits down into multiple transactions in amounts below $10,000, and used both business and personal accounts.
This case was investigated by the Internal Revenue Service - Criminal Investigation. Assistant United States Attorneys Laura Colombell Marshall and David Maguire are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Head Shop Owner Pleads Guilty to Conspiracy Charges in Treasure Valley CaseRead the Press Release
BOISE – William Oldenburg, 66, of Eagle, Idaho, pleaded guilty today in federal court to count four of the superseding indictment charging him with conspiracy to distribute controlled substance analogue, and count ten charging him with conspiracy to structure transactions, U.S. Attorney Wendy J. Olson announced. The indictment was returned by a federal grand jury in Boise on November 15, 2012.
According to court documents, Oldenburg is the owner of Gary's Dream, LLC, which operates Boise Beverage and Tobacco and The Pit Stop Express. The businesses, commonly referred to as “head shops,” are engaged in the unlawful sale of drug paraphernalia to drug users and drug traffickers. Items of drug paraphernalia were typically sold at the businesses under the guise of “tobacco products,” or with claims of other “legitimate” uses. According to the indictment, Oldenburg referred to much of the drug paraphernalia as “smoking accessories,” to be used only to smoke tobacco. However, virtually all of the smoking devices sold by Oldenburg were commonly used to ingest marijuana, hashish, and/or other illegal drugs, not tobacco.
Oldenburg admitted that beginning on March 1, 2011, and continuing through May 10, 2012, he knowingly conspired with other persons to distribute and possess with intent to distribute a mixture and substance containing a detectable amount of AM-2201 and UR-144, Schedule I controlled substance analogues, knowing the substance was intended for human consumption; and 813.45 kilograms of a mixture and substance containing AM-2201 or UR-144, both controlled substance analogues.
Oldenburg further admitted that between at least July 2011, and November 2012, he conspired with others to conduct a series of financial transactions involving the proceeds of the unlawful activity, in order to evade reporting requirements under federal law.
Conspiracy to distribute controlled substance analogue, as charged in count four of the superseding indictment, is punishable by up to twenty years in prison, a maximum fine of $1 million, and up to three years of supervised release. Conspiracy to structure transactions, as charged in count ten, is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release. The government is seeking forfeiture of assets derived from the criminal offenses, including cash, real property and personal property.
Sentencing is set for June 17, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
Oldenburg is among the seventeen individuals charged last year as part of Operation Not for Human Consumption, which targeted illegal sales of drug paraphernalia and “spice” at 13Treasure Valley businesses. According to search warrant affidavits, nine of the 13 businesses were openly selling “spice,” a substance that tested positive for AM-2201. The DEA has determined that AM-2201 is a controlled substance analogue. “Spice,” a synthetic form of cannabis, which is a psychoactive herbal and chemical product that, when consumed, mimics the effects of cannabis. In the spring of 2011, the Idaho Legislature criminalized the sale of “spice” under state law. In March of 2011, the Drug Enforcement Administration placed five synthetic cannabinoids into Schedule I of the Controlled Substances Act. It is against federal law to sell or offer for sale any paraphernalia that is primarily intended or designed for drug use, regardless of whether the seller advises their customers that the paraphernalia is for tobacco use only. The businesses are commonly referred to as “head shops.”
Operation Not for Human Consumption includes the cooperative law enforcement efforts of the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Boise Police Department, Ada County Sheriff's Office, Canyon County Sheriff's Office, Nampa Police Department, Meridian Police Department, and the Canyon County Prosecutor's Office. The U.S. Marshals Service and Idaho State Police provided assistance.
Grand Jury Indicts Seven on Gun & Drug ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA — Seven individuals were named in three
Indictments returned by a federal grand jury sitting in Martinsburg, West Virginia, last week.
United States Attorney William J. Ihlenfeld, II, announced the following indictments: CHRISTOPHER WAYNE WILLIAMS, age 39, of Mill Creek, West Virginia, was named in a two-count Indictment charging him with one count of “Felon in Possession of a Firearm” and one count of “Possession of Stolen Firearms.” If convicted, WILLIAMS faces up to 10 years imprisonment and a $250,000 fine on each count. This case will be prosecuted by Criminal Chief Shawn A. Morgan and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.JASON S. SWISHER, age 30 and JENNIFER N. HILEMAN, age 29, of Bunker Hill, West Virginia, were named in a four-count Indictment. Count One charges SWISHER and HILEMAN with “Conspiracy to Distribute Heroin;” Count Two charges HILEMAN with “Distribution of Heroin;” Count Three charges SWISHER with “Distribution of Heroin;” and, Count Four charges HILEMAN with “Possession with Intent to Distribute Heroin.” If convicted, SWISHER and HILEMAN face up to 20 years imprisonment and a $1,000,000 fine on each count. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and will be prosecuted by Assistant United States Attorney Robert H. McWilliams, Jr.
FRANK K. BRINKMEYER, age 43; PATRICIA M. BRINKMEYER, age 66; CHARLOTTE M. JENKINS, age 38; and, MICHAEL B. SMITH, age 38, of Berkeley County, West Virginia, were named in a nine-count Indictment. FRANK BRINKMEYER is charged in Counts One, Three, Four, Five and Six with “Distribution of Heroin;” in Count Seven with “Possession with Intent to Distribute Heroin;” and, in Count Nine with “Conspiracy to Distribute Heroin and Oxycodone.” PATRICIA BRINKMEYER is charged in Count Two with “Distribution of Oxycodone;” in Counts Three and Four with “Distribution of Heroin;” and, in Count Nine with “Conspiracy to Distribute Heroin and Oxycodone.” JENKINS is charged in Count Two with “Distribution of Oxycodone,” in Counts Three, Four and Eight with “Distribution of Heroin;” and, in Count Nine with “Conspiracy to Distribute Heroin and Oxycodone.” SMITH is charged in Count Eight with “Distribution of Heroin” and, in Count Nine with “Conspiracy to Distribute Heroin and Oxycodone.” If convicted, each of the Defendants faces up to 20 years imprisonment and a $1,000,000 fine on each count. This case was investigated by the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, and the Berkeley County Sheriff’s Department.
This case will also be prosecuted by Assistant United States Attorney McWilliams. All of the charges contained in the above-referenced indictments are merely accusations and not evidence of guilt, and each defendant is presumed innocent until and unless proven guilty.Goodwin Charges Former Alpha Employees and Alpha Supplier in A Major False Billing SchemeRead the Press Release
Investigation Uncovers Extensive Fraud at Massey Legacy Mines Operated in Boone and Raleigh Counties
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin today announced charges in connection with a false billing scheme orchestrated by former employees of Alpha Natural Resources (“Alpha”) and certain companies that supplied supplies, equipment, and services to Alpha. Edward Ellis Mullins, 41, of Peytona, West Virginia, Joey R. Phalin, 36, of Crab Orchard, West Virginia, and Nicholas R. Coleman, 29, of Lester, West Virginia, are former local “sourcing agents” for Massey Energy (“Massey”) legacy mines operated along WV Route 3 in Boone and Raleigh counties. Donald Bryan Steele, 43, of Barboursville, West Virginia, is the owner of M&S Hydraulics, a major Alpha supplier with offices in Barboursville and a rebuild shop in Switzer, West Virginia. Each has been charged by information with wire fraud and aiding and abetting. All four have agreed to plead guilty and are cooperating with the ongoing investigation.
An investigation revealed that several mine sourcing agents, generally responsible for ordering goods and services for mining operations from Alpha suppliers, participated in an illegal scheme to obtain goods for their own personal benefit. The investigation further revealed that the sourcing agents, working in conjunction with the suppliers, hid numerous illegal transactions by creating false invoices. The false invoices, prepared by the supplier, were intended to look like legitimate purchases, but were really used to provide cash, gifts and other things of value to the sourcing agents and other Alpha employees.
“Today’s announcement is the first step in an ongoing criminal investigation,” U.S. Attorney Goodwin said. “People who accept bribes or who cheat their employers by approving fake bills are committing fraud, plain and simple, and my office will prosecute them to the fullest extent of the law.”
“Schemes like this create unfair obstacles for suppliers who want to do business honestly,” Goodwin continued, “and they drive up prices for everyone. There’s no place for that in the American economy.”
Mullins was employed as the sourcing agent for the Shonk Powellton #1 mine, operated by the Elk Run Coal Company, an Alpha subsidiary. Around November 2011, Mullins approached a supplier, who generally provided tires, wheels and other vehicle-related materials to Massey and now Alpha, about supplying him and other Alpha employees tires and wheels for their personal vehicles. In exchange, Mullins agreed to allow the tire seller to submit false invoices for payment to Alpha reflecting that tires used in the mining operations had been delivered. For its participation, the tire seller was told to “pad” the false invoice. The tire seller immediately provided this information to Alpha corporate security, who, in turn, contacted the FBI and West Virginia State Police. Over the course of the next six months, the criminal investigation revealed that not only Mullins, but other sourcing agents, including Phalin and Coleman, who were employed by another Alpha subsidiary, Marfork Coal Company, were also engaged in the false billing scheme.
Through the sourcing agents’ cooperation and other information, the agents identified an even more prominent supplier involved in the false-billing scheme. In February 2013, the FBI and the State Police confronted Steele, the owner of M&S Hydraulics, a major Alpha supplier. The significant evidence uncovered by the FBI and the State Police led Steele to agree to cooperate immediately in the investigation.
Mullins, Phalin, Coleman and Steele each face up to 20 years in prison and a $250,000 fine.
The investigation was conducted by the FBI and the West Virginia State Police with cooperation from Alpha Natural Resource’s internal security team. Assistant United States Attorney Thomas Ryan is in charge of the prosecutions.
In June 2011, Alpha Natural Resources finalized the purchase of Massey, including the mining divisions located along WV Route 3 in Boone and Raleigh counties.
Note: A sourcing agent refers to the individual located at each mine site who is responsible for ordering goods and services from vendors to ensure the continuation of mining operations.
Former Southern Illinois Hospital Employees Sentenced for Stealing Identities of Elderly Hospital PatientsRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that, Susan L. Harris, 28, of Marissa, Illinois, and Ashley C. Drummond, 25, of East St. Louis, Illinois, were sentenced for aggravated identity theft and conspiracy to commit mail fraud in the United States District Court for the Southern District of Illinois, East St. Louis Division. Harris was convicted following a two-day jury trial in December 2012. Today, the United States District Court sentenced Harris to 4 years in prison, to be followed by 3 years of supervised release. Harris was ordered to pay $7,648.97 in restitution and a $200 special assessment. Drummond, who pleaded guilty in November 2012, was previously sentenced to 2 years in prison, to be followed by a 3 year term of supervised release. Drummond also was ordered to pay $8,675.27 in restitution to various victims and a $200 special assessment.
“Preying upon the elderly, the sick, and the vulnerable when they are in the hospital, at their most vulnerable, reflects a cold and callous person devoid of a conscience. I will continue to aggressively prosecute these types of criminals so that they never profit from their greed,” said U.S. Attorney Wigginton.
Evidence presented at the trial of Susan Harris showed that Harris conspired with Ashley Drummond to steal personal identifying information of patients of a Southern Illinois hospital. The two women targeted elderly patients, particularly patients who came to the hospital from nursing homes and assisted living facilities. Drummond and Harris used the stolen personal information to apply for new credit card accounts in the victims’ names. Harris had worked at the hospital before forming the scheme with Drummond, but she was no longer an employee of the hospital during the period when patient identifying information was stolen. Instead, Harris relied on Drummond to steal information from the elderly patients’ charts. Drummond was a radiology technician, and it was her job to transport patients to and from the radiology department as needed. While transporting the patients, Drummond would steal victims’ personal information from their charts. Drummond, who pleaded guilty to her role in the offense, testified against Harris and admitted that, after stealing the information, she would call Harris to discuss which credit accounts to apply for with the newly acquired patient information, after which one of the women would attempt to apply for a new credit account. Harris was later caught on camera at a retail store using one of the credit cards obtained with the personal information of a 90-year-old woman who lived in an assisted living center and had been a patient at the hospital where Drummond worked.
This case was investigated by the Southern District of Illinois Identity Theft Task Force, the United States Postal Inspection Service, the Internal Revenue Service Criminal Investigation Division, the Social Security Administration Office of the Inspector General, the Maryville Police Department, the Glen Carbon Police Department, and the Collinsville Police Department. The case was prosecuted by Special Assistant United States Attorney Katherine L. Lewis and Assistant United States Attorney Michael J. Quinley.
If you think that you might be a victim of identity theft, contact the Southern District of Illinois Identity Theft Task Force at 618-410-6918.
Former Employee of New Jersey Defense Contractor Sentenced to 70 Months in Prison for Exporting Sensitive Military Technology to ChinaRead the Press Release
NEWARK, N.J. – A former New Jersey-based defense contractor employee – who was convicted by a federal jury for exporting sensitive U.S. military technology to the People’s Republic of China (PRC), stealing trade secrets and lying to federal agents – was sentenced today to 70 months in prison, New Jersey U.S. Attorney Paul J. Fishman announced.
Sixing Liu, a/k/a, “Steve Liu,” 49, a PRC citizen who had recently lived in Flanders, N.J., and Deerfield, Ill., has been in custody since the September 2012 verdict, based on his risk of flight.
“Instead of the accolades he sought from China, Sixing Liu today received the appropriate reward for his threat to our national security: 70 months in prison,” said U.S. Attorney Fishman. “As an innovation leader, the United States is a target for those seeking to cut corners at the expense of American businesses and consumers. As this sentence shows, the Department of Justice is making great progress in the fight against trade secret theft in order to protect the engines of our nation’s economic recovery.”
The jury convicted Liu of nine of the 11 counts in the Second Superseding Indictment with which he was charged, including six counts of violating the Arms Export Control Act and the International Traffic in Arms Regulations, one count of possessing stolen trade secrets in violation of the Economic Espionage Act of 1996, one count of transporting stolen property in interstate commerce and one count of lying to federal agents.
In addition to the prison term, Liu was sentenced to serve three years of supervised release and ordered to pay a $15,000 fine. Restitution is to be determined at a later date.
According to documents filed in the case and evidence presented at trial:
In 2010, Liu stole thousands of electronic files from his employer, L-3 Communications, Space and Navigation Division, located in Budd Lake, N.J. The stolen files detailed the performance and design of guidance systems for missiles, rockets, target locators and unmanned aerial vehicles. Liu stole the files to position and prepare himself for future employment in the PRC. As part of that plan, Liu delivered presentations about the technology at several PRC universities, the Chinese Academy of Sciences and conferences organized by PRC government entities.
On Nov. 12, 2010, Liu boarded a flight from Newark Liberty International Airport to the PRC. Upon his return to the United States on Nov. 29, 2010, agents found Liu in possession of a non-work-issued computer containing the stolen material. The following day, Liu lied to agents of the Department of Homeland Security about the extent of his work on U.S. defense technology, which the jury found to be a criminal false statement.
The U.S. Department of State’s Directorate of Defense Trade Controls later verified that several of the stolen files on Liu’s computer contained export-controlled technical data that relates to defense items listed on the United States Munitions List (USML). Under federal regulations, items and data covered by the USML may not be exported without a license, which Liu did not obtain. The regulations also provide that it is the policy of the United States to deny licenses to export items and data covered by the USML to countries with which the United States maintains an arms embargo, including the PRC.The jury heard testimony that Liu’s company trained him about the United States’ export control laws and told him that most of the company’s products were covered by those laws.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez; special agents of ICE-Homeland Security Investigations, under the direction of Special Agent in Charge Andrew McLees; and officers of U.S. Customs and Border Protection, under the leadership of Director of New York Field Operations Robert E. Perez, for the investigation leading to the sentence.
The government is represented by Assistant U.S. Attorney L. Judson Welle of the U.S. Attorney’s Office National Security Unit and Assistant U.S. Attorney Gurbir S. Grewal of the Computer Hacking and Intellectual Property Section of the U.S. Attorney’s Office Economic Crimes Unit, both in Newark. The prosecution received valuable support from attorneys of the U.S. Department of Justice’s National Security Division, Counterespionage Section.
13-141Defense counsel: James Darryl Tunick Esq., Chicago
Former Condo-Hotel Developer Arraigned After Being Extradited from Italy on Federal Tax Evasion ChargeRead the Press Release
CHICAGO — A former real estate developer who attempted to convert hotels in Chicago, Miami Beach, Fla., and elsewhere into condominium-hotels was arraigned today on federal tax evasion charges following his extradition from Italy. The defendant, DAVID R. FALOR, who was a principal in The Falor Companies, Inc., was charged with two counts of federal income tax evasion and one count of filing a false federal income tax return in an indictment that was returned by a federal grand jury in December 2011 when Falor was living in Modena, Italy.
Falor, 73, formerly of Chicago and the Miami area, was returned to the United States on Friday after Italian courts ordered him extradited on one count of income tax evasion. He remains in federal custody after pleading not guilty this morning before U.S. District Judge Matthew Kennelly in Federal Court in Chicago.
According to the indictment, The Falor Companies, which ceased operating in 2006, attempted to convert hotels to condo-hotels by selling individual guest rooms to investors as separately titled condominium units, and renting them through a related hotel management company to other guests when the owner was not in residence, with the owner receiving a percentage of the rental fee. The companies operated multiple condo-hotel ventures in the mid- 2000s, including the Blake Hotel, located at 500 S. Dearborn St., in Chicago, and the Tides Hotel on Ocean Drive in Miami Beach.
Falor was extradited on a tax evasion count alleging that he failed to pay income tax of approximately $341,093 on taxable income of approximately $1,048,802 during calendar year 2006. During that year, Falor allegedly converted approximately $779,096 in payments that were recorded as loans from The Falor Companies, but which became taxable income when the companies went out of business and Falor used the funds for personal expenses. Falor allegedly failed to file a federal income tax return for 2006 or to pay any taxes.
The indictment also charged Falor with tax evasion and filing a false federal income tax return for 2005, but the government indicated in court today that those two counts will likely be dismissed at a later time because of the terms of Falor’s extradition.
In separate cases, Falor’s two sons also face federal tax charges in Chicago. Christopher Falor, a consultant to the condo-hotel projects, is awaiting sentencing after pleading guilty to mail fraud and tax counts, and Robert Falor, who was the chief operating officer of The Falor Companies, is in custody awaiting disposition of tax charges.
The developments were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and Thomas P. Brady, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.
The government is being represented by Assistant U.S. Attorneys Ryan S. Hedges and Barry Jonas.
Tax evasion carries a maximum penalty of five years in prison and a $250,000 fine. In addition, defendants convicted of tax offenses face mandatory costs of prosecution and remain civilly liable to the Government for any and all back taxes, as well as a civil fraud penalty of up to 75 percent of the underpayment plus interest. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Former City of Miami Police Sergeant Sentenced on Civil Rights Violations, Narcotics Distribution Conspiracy and Obstruction of Justice ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Manuel Orosa, Chief, City of Miami Police Department (MPD), announced the March 22, 2013 sentencing of defendant Raul Iglesias, 40, of Miami, Florida, a former City of Miami police sergeant, following his January 2013 conviction on eight counts, including two civil rights violations, conspiracy to possess and possession with the intent to distribute cocaine and crack cocaine, obstruction of justice and making false official statements. U.S. District Judge Cecilia Altonaga sentenced Iglesias to 48 months in prison, to be followed by three years of supervised release.
Iglesias was convicted in January 2013, following a two week trial. According to the evidence presented at trial, Iglesias, in his capacity as a supervisor of an anti-narcotics unit in the City of Miami Police Department, planted cocaine on a subject, stole drugs and money from other subjects, obstructed justice and made false statements to federal investigators.
The prosecution is the result of a joint investigation by the City of Miami Police Department’s Internal Affairs Unit and the FBI’s Public Corruption Squad. The case was prosecuted by Assistant U.S. Attorneys Ricardo Del Toro and Michael Berger.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Florida Men Arrested for Conspiracy to Illegally Transport Destructive Devices and Machine GunsRead the Press Release
JAIME JAUREGUI, 34, and CARLOS CABRERA, 42, both of Orlando, Florida, RUBEN JAUREGUI, 24, and FRANCISCO MALDONADO, 46, both of Dade City, Florida, were arrested last Friday (March 22, 2013) and charged by criminal complaint with conspiracy to transport destructive devices (M-60 Grenades) and machine guns (AK 47 fully automatic assault rifles and Colt M-4 automatic assault rifles) in violation of Title 18, United States Code, Sections 371 and 922(a)(4), announced U.S. Attorney Dana J. Boente.
According to previously filed court documents, agents of Homeland Security Investigations in New Orleans received information in January 2012 indicating that JAIME JAUREGUI was interested in acquiring items listed on the United States Munitions List to be smuggled to end users in Mexico. On at least four occasions from January 2012 through March 21, 2013, JAIME JAUREGUI met with undercover agents in St. Tammany Parish to negotiate the purchase of more than 100 fully automatic assault rifles, grenade launchers, grenades, and night vision goggles, all of which were destined for a Mexican drug trafficking cartel. JAIME JAUREGUI provided a cash deposit of approximately $46,000.00 during those meetings. JAIME JAUREGUI hired CARLOS CABRERA, FRANCISCO MALDONADO, and RUBEN JAUREGUI to assist him with transporting the weapons to the final destinations. None of the men have federal firearms or export licenses. On March 21, 2013, all were arrested by Special Agents of Homeland Security Investigations.
Federal Guilty Plea from Landlord Who Accepted Drugs as Rent PaymentsRead the Press Release
Jerry Lowe rented apartment to Huntington pair now serving federal prison sentences for drug felonies
HUNTINGTON, W.Va. – U.S. Attorney Booth Goodwin announced today that a Huntington landlord pleaded guilty in federal court to distribution of a quantity oxycodone. Jerry A. Lowe, 46, admitted that on March 16, 2012, he sold three 30-milligram oxycodone tablets in exchange for $90. Lowe also admitted to receiving an additional $210 from a prior drug-related debt. Lowe was the former landlord of convicted felons Rafael Cee-Erwin Solomon, 31, of Detroit and Shawna Danielle Lee, 26, of Huntington.
Lowe admitted that he typically received heroin or prescription painkillers from Solomon and Lee as payment for monthly rent expenses. Lowe also admitted that he purchased oxycodone pills from another individual who lived at the Highlawn Avenue residence at the time.
Solomon was previously sentenced in December to 11 years and three months in federal prison for conspiracy to distribute cocaine, crack cocaine, oxycodone, and oxymorphone. Solomon’s co-defendant Lee, was also previously sentenced in September 2012 to one year and six months in federal prison for maintaining a residence for the purpose of distributing crack cocaine, cocaine, oxycodone and oxymorphone
On June 13, 2012, law enforcement officers conducted a traffic stop of the defendant’s vehicle. During the stop, officers found the defendant in possession of 1.1 grams of heroin.
Lowe faces up to 20 years in prison and a $1 million fine when he is sentenced on June 24, 2013 by Chief United States District Judge Robert C. Chambers.
The Huntington Violent Crimes and Drug Task Force conducted the investigation. Assistant United States Attorney Gregory McVey is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Fargo Scrap Metal Dealer Pleads Guilty to Tax ChargeRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on March 25, 2013, Hamzo Omerovic of Fargo, N.D., pleaded guilty before U S. Magistrate Judge Karen K. Klein to a federal tax charge.
Omerovic, 27, pleaded guilty to a one-count information charging him with willfully failing to file an income tax return for calendar year 2006. Willful failure to file a tax return in violation of Title 26, United States Code, Section 7203, is a Class A Misdemeanor punishable by up to one-year in prison and a fine of up to $100,000.
Omerovic, a self-employed scrap metal dealer, in 2006 purchased and obtained scrap metal in Fargo and the surrounding area, which he then sold to a number of scrap metal dealers, primarily in North Dakota and Minnesota. The investigation conducted by the Internal Revenue Service - Criminal Investigation Division, showed that Omerovic’s gross receipts for the year totaled in excess of $152,000, with an estimated tax loss, for sentencing purposes, of more than $30,000.
Omerovic admitted, in the plea agreement and in court, that he had willfully failed to file a 2006 income tax return with the IRS, even though he had earned sufficient gross income and knew he was required to file a return no later than April 17, 2007.
The actual tax loss to the IRS will be determined after sentencing through a civil tax examination by the IRS.
U.S. Attorney Timothy Q. Purdon stated, “Self-employed persons, such as Mr. Omerovic, have an obligation to accurately report their income, deductions and credits to the IRS and maintain appropriate records of those items. Failure to file tax returns is a serious problem which can result in imprisonment.”
"With the tax filing season upon us, those who might consider preparing false tax returns should be aware of the extremely negative consequences as evidenced today," said Kelly R. Jackson, Special Agent in Charge of the St. Paul Field Office. "Today's guilty plea of Mr. Omerovic again emphasizes that the Internal Revenue Service- Criminal Investigation Division and U.S. Attorney’s Office will continue their aggressive pursuit of those who would attempt to defraud America's tax system."
Omerovic, who was released on his personal recognizance, will be sentenced at a later date.
The case was investigated by the Internal Revenue Service - Criminal Investigation Division.
Assistant U.S. Attorney Scott S. Schneider is prosecuting the case.
Dubuque Man Charged with Distributing Heroin That Resulted in Death and Distributing Heroin Near A School and A PlaygroundRead the Press Release
Alvin Stanley Briggs, Jr., age 50, from Dubuque, Iowa, has been charged with one count of distribution of heroin resulting in death and four counts of distribution of heroin near a school and a playground. The charges are contained in an Indictment unsealed today in the United States District Court in Cedar Rapids.
The Indictment alleges that, on or about July 3, 2012, Briggs distributed heroin to an individual identified as S.R., and that S.R.’s death resulted from use of the heroin. The Indictment also charges that on four different days in January and February 2013, Briggs distributed heroin within 1,000 feet of Prescott Elementary School and Jackson Park in Dubuque.
If convicted on all charges, Briggs faces a possible mandatory minimum sentence of 24 years’ imprisonment and a possible maximum sentence of life imprisonment, a $9,000,000 fine, $500 in special assessments, and up to a lifetime term of supervised release following imprisonment.
Briggs appeared today in federal court in Cedar Rapids and was held without bond. Briggs’s next appearance, for a detention hearing, is set for Wednesday, March 27, 2013, at 4:30 p.m.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Dan Chatham and was investigated by the Platteville, Wisconsin, Police Department, and the Dubuque, Iowa, Drug Task Force.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 2:13-CR-01004-LRR.
Drug Trafficker Linked to Hells Angels Sentenced to 21 YearsRead the Press Release
United States Attorney Laura E. Duffy announced that David Raymond Garcia, a methamphetamine dealer and associate of the Hells Angels motorcycle gang, was sentenced today in U.S. District Court to serve 262 months in prison for conspiracy to distribute methamphetamine. At today's hearing, U.S. District Judge Marilyn L. Huff also sentenced Jason Scanlon, another methamphetamine supplier charged in the case, to serve 188 months in custody. These two defendants were prosecuted as part of an FBI Violent Crimes Task Force investigation that ultimately resulted in 36 defendants being charged with conspiracy to distribute methamphetamine.
According to court documents and information provided at the sentencing hearing by Assistant U.S. Attorney Andrew G. Schopler, Garcia supplied drugs to or employed at least 20 codefendants (and Scanlon at least four codefendants) during the course of the investigation into methamphetamine-trafficking and violent crimes committed by the San Diego Chapter of the Hells Angels and their criminal partners. Court documents also show that Garcia and codefendant Michael 2 Ottinger, Jr., the Sergeant-at-Arms for the Hells Angels, used violent force and intimidation to control the methamphetamine trade in San Diego. On December 3, 2012, Judge Huff sentenced Ottinger for his role in the methamphetamine conspiracy to serve 262 months in federal prison. Ottinger still faces murder charges in state court relating to the 2010 murder of a rival member of the Mongols motorcycle gang.
U.S. District Judge Marilyn L. Huff found both Garcia and Scanlon to be career offenders under federal law. This offense is Garcia's ninth felony conviction, including eight drug felonies and one felony for forging an access card to commit fraud. Scanlon now has ten felony convictions, including eight drug felonies, one felony for receiving stolen property, and one felony for evading a peace officer.
United States Attorney Duffy stated, "Individuals involved in the drug trade not only proliferate the spread of dangerous narcotics in our society, but they also destabilize our communities with violence and related criminal activities. Our federal, state and local law enforcement partners on the Task Force have done the San Diego community a great service by taking these dangerous offenders off the street."
DEFENDANT Case Number: 10CR5016-H David Raymond Garcia
Jason Alex Scanlon Age: 43
Age: 42 SUMMARY OF CHARGESConspiracy to Distribute MethamphetamineCTitle 21, United States Code, Sections 841(a)(1) and 846
AGENCIESFederal Bureau of Investigation
San Diego Police Department
San Diego County Probation Department
Oceanside Police Department
National City Police Department
Chula Vista Police Department
San Diego County Sheriff's Department
San Diego County District Attorney's OfficeSummary of Sentences in Criminal Case: 10cr5016-H
Conspiracy to Distribute Methamphetamine-Title 21, United States Code, Sections 841(a)(1) and 846
Michael Edward Ottinger, Jr.
David Raymond Garcia
Martin Francisco Moreno
Hugo Gomez Flores
Rory Cruz Flanigan
Jason Alex Scanlon
Eduardo Andres Sarquiz
Juan Antonio Mendez
William Manuel Castellano
Daniel Joseph Seiler
Cynthia Marie Stephan
Matthew Joseph Mooney
Darrel Lee Cooper
Robert Blaine Hodges
Mercedes Ciara Nina Cornejo
Bruce Kevin Lambert
Jason Michael Bradford
Douglas Edward Witcher
Phalen Farber
Derek Ralph Low
Mary Elizabeth Saber
Anthony James Medvec
Andre Guy Almeraz 262 Months
262 Months
120 Months
120 Months
70 Months
188 Months
41 Months
115 Months
92 Months
87 Months
78 Months
84 Months
60 Months
48 Months
77 Months
70 Months
60 Months
63 Months
40 Months
77 Months
92 Months
30 Months
46 Months
Summary of Sentences for Illegal Use of a Communication Facility to Facilitate Meth Trafficking – Title 21, United States Code, Section 843(b): Martin Thomas Forschner
Patrick James Haggerty
30 Months
46 Months Law enforcement continues to seek the public’s assistance in locating fugitive defendant Ernesto Verdugo, Jr. Anyone with information regarding this fugitive may contact the FBI at 858-565-1255.Defendants Sentenced to Lengthy Federal Prison Terms for Roles in Methamphetamine ConspiracyRead the Press Release
WICHITA FALLS, Texas — Three defendants, who pleaded guilty to their respective roles in a major methamphetamine distribution conspiracy that operated in Wichita Falls, were sentenced on Friday, in federal court in Wichita Falls, by U.S. District Judge Reed C. O’Connor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Randall Wayne Ezzell, 46, was sentenced to 240 months in federal prison; Jason Alan Haney, aka “A.J. Haney,” 27, was sentenced to 235 months in federal prison; and Troy Radford, 36, was sentenced to 24 months in federal prison.
These are the first sentencings in this case in which 28 of the 30 defendants charged in the conspiracy have entered guilty pleas and will be sentenced during the next few months. The cases against two of the defendants have not been resolved. All 30 of the defendants who have been charged in the superseding indictment, which was returned by a federal grand jury in October 2012, are in custody.
According to documents filed in the case, Ezell admitted that on multiple occasions in 2011, he manufactured, or cooked, anhydrous methamphetamine for co-conspirator Steve Ysasaga. Ysasaga supplied the pseudoephedrine tablets, a necessary ingredient to manufacture methamphetamine, and Ezzell obtained the rest of the ingredients necessary to manufacture the methamphetamine. Each “cook” involved a minimum of 20 boxes of pseudoephedrine and yielded approximately 40 grams of methamphetamine.
In addition, according to documents filed in the case, when a state narcotics search warrant was executed on December 5, 2011, at 12570 FM 171 in Wichita Falls, Ezzell and co-conspirators James Allen Stafford and Diana Gail Hassell were present on the property when agents discovered a clandestine methamphetamine laboratory in operation.
Haney, whose primary role in the drug distribution conspiracy was as an enforcer, admitted that he accompanied Ysasaga to assist him in collecting a drug debt from a debtor by use of violence and intimidation. Haney also admitted that on numerous occasions in 2011, he received one-to two-ounce quantities of methamphetamine from Ysasaga and that he received at least 12 ounces of methamphetamine from Ysasaga. He admitted that he sold methamphetamine to customers, including co-conspirator Dewel Wells, in Wichita Falls.
Radford admitted that on numerous occasions between May and September 2012, he distributed quantities of methamphetamine to, and received payments for, methamphetamine from customers in the Wichita Falls area.
This Organized Crime and Drug Enforcement Task Force (OCDETF) case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Texas Department of Public Safety and the Wichita Falls Police Department. Assistant U.S. Attorney Mary F. Walters is in charge of the prosecution.
Cranston Felon Sentenced to 12 Years in Federal Prison on Heroin Trafficking, Firearms ChargesRead the Press Release
PROVIDENCE, R.I. – Abel Perez, 31, of Cranston, was sentenced on Friday to 12 years in federal prison for trafficking heroin, being a felon in possession of a firearm and for use of a firearm in furtherance of drug trafficking, announced United States Attorney Peter F. Neronha and John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) New England Field Division.
Perez was arrested in September 2011 by agents and officers assigned to the DEA Drug Task Force following a five-month undercover investigation into Perez’s drug trafficking activities.
At sentencing, U.S. District Court Judge William E. Smith also ordered Perez to serve four years of supervised release upon completion of his prison term. Perez pleaded guilty on February 3, 2012, to one count each of possession with the intent to distribute 100 grams or more of heroin, felon in possession of a firearm and possession of a firearm in furtherance of a drug trafficking crime.
According to information presented to the court, beginning in April 2011, DEA Drugs Task Force agents made several controlled purchases of varying amounts of heroin from Perez. On September 7, 2011, agents detained Perez as he exited his Cranston residence carrying a paper bag which he placed on the front seat of his vehicle. Perez consented to a search of the vehicle and of his two residences in Cranston and Johnston.
From the vehicle, agents seized more than 500 grams of heroin and a loaded .22 caliber semi-automatic handgun from a secret compartment behind the vehicle’s radio. A search of Perez’s residences and a garage turned up additional quantities of heroin, approximately $7,000 in cash, a .357 revolver and an assortment of ammunition.
U.S. District Court Judge William E. Smith sentenced Perez to 84 months in federal prison for possession with the intent to distribute 100 grams or more of heroin and being a felon in possession of a firearm; and, a consecutive sentence of 60 months in federal prison for possession of firearm in furtherance of a drug trafficking crime.
The case was prosecuted by Assistant U.S. Attorney Adi Goldstein.
The DEA Drug Task Force is comprised of agents and law enforcement officers from the DEA, ATF, IRS, Homeland Security Investigations, Rhode Island State Police and Cranston, East Providence, Pawtucket, Providence, Newport, Warwick and Woonsocket Police Departments.
Contact: 401-709-5357
[email protected]Convicted Sex Offender Sentenced to Thirty Months in Federal Prison for Failing to RegisterRead the Press Release
Montgomery, Alabama - Samuel P. Wadsworth, 41, a resident of Houston County, Alabama, was sentenced to federal prison for a federal felony conviction for failing to register as a sex offender, United States Attorney George L. Beck, Jr., announced today.
A federal grand jury indicted Wadsworth in June 2012, for one count of failing to register and update a registration as required by the Sex Offender Registration and Notification Act. Back in 2005, Wadsworth was convicted of one count of sexual abuse first degree in Russell County, Alabama. Due to this conviction, Wadsworth is required to register in Alabama and keep his registration current. During Wadsworth’s guilty plea hearing he admitted that he knew he was required to register, that from 2008 to 2011 he registered as a sex offender in Alabama, and that prior to moving to another state he must notify the Houston County Sheriff’s Office of his intention to move. Further, Wadsworth admitted that he traveled from Alabama to Florida and failed to update his sex offender registry in Alabama.
Chief United States District Judge W. Keith Watkins sentenced Wadsworth to thirty (30) months imprisonment to be followed by five (5) years of supervised release. Chief Judge Watkins noted that Wadsworth had not only failed to register but also attempted to rob a store, attempted to rob a bank, and robbed a bank while he was unregistered. Wadsworth 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 Houston County Sheriff’s Office. Assistant United States Attorney Jerusha T. Adams prosecuted the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Cedar Rapids Man Sentenced for Making False Statement to Postal InspectorRead the Press Release
A man who made a false statement to a U.S. Postal Inspector conducting a fraud investigation was sentenced today to more than one year in federal prison.
Raymond Cortez, age 65, from Cedar Rapids, Iowa, received the prison term after a December 11, 2012, jury verdict finding him guilty of one count of making a material false statement in a matter within the jurisdiction of the United States.
Evidence at trial showed that, on November 20, 2007, Cortez lied to a U.S. Postal Inspector during an interview. The Postal Inspector asked Cortez whether his vehicle, a black Hummer, was involved in a chase of a young man the month prior on First Avenue in Cedar Rapids. Cortez falsely denied knowing anything about the chase. The evidence at trial showed Cortez was the driver of the Hummer during the chase. The chase was being investigated because the occupants of the Hummer were attempting to retrieve a $3,323.00 federal student aid check from the young man. Some of the occupants of the Hummer had fraudulently obtained the check as part of a scheme to defraud the United States out of student loan funds.
Cortez was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Cortez was sentenced to twenty-one months’ imprisonment to be followed by three years’ supervised release. A special assessment of $100 was also imposed. There is no parole in the federal system.
At the sentencing hearing, Chief Judge Reade said Cortez had “no respect for the law.” Judge Reade enhanced Cortez’s sentence for perjuring himself during his testimony at trial. Regarding Cortez’s trial testimony, Judge Reade added Cortez had “no respect for the oath.”
Cortez was released on the bond previously set and is to surrender to the United States Marshal on April 15, 2013.
The case was prosecuted by Assistant United States Attorney Peter Deegan and was investigated by the United States Postal Inspection Service and the United States Department of Education.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-74 LRR.
Caddell Construction Agrees to Pay $1,150,000 to Resolve False Claims AllegationsRead the Press Release
The Justice Department announced today that Alabama-based Caddell Construction has agreed to pay to the United States $1,150,000 to settle allegations that it violated the False Claims Act by falsely reporting to the Army Corps of Engineers that it hired and mentored a Native American-owned company to work on construction projects at Fort Bragg, N.C., and Fort Campbell, Ky.
The Army Corps contracted with Caddell between 2003 and 2005 to build barracks at the two bases. As part of the contracts, Caddell represented that it would hire and mentor Mountain Chief Management Services, a Native American-owned company, under the Department of Defense’s Mentor-Protégé and Indian Incentive Programs. The Mentor-Protégé Program reimburses companies for the time and cost of mentoring small disadvantaged businesses, while the Indian Incentive Program provides a rebate to contractors for subcontracting with Native American-owned businesses.
The United States alleged that from April 2003 to March 2005, Caddell falsely represented in its invoices and supporting documents that it was mentoring Mountain Chief and that Mountain Chief was performing work on the construction projects. According to the government, Mountain Chief allegedly was merely a pass-through entity used by Caddell to claim payments under the two programs, and didn’t perform the work or receive the mentoring services for which Caddell received payment.
“Contractors that subvert important government programs, such as those designed to benefit small and Native American-owned businesses, will be held accountable,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Civil Division of the Department of Justice. “We will work tirelessly to ensure that participants in federal programs and benefits receive only the money to which they are entitled.”
Caddell’s former director of business development, Mark Hill, and Mountain Chief’s former president, Daniel Chattin, were indicted on related charges in federal district court for the Middle District of Alabama in January 2012. Both are awaiting trial. In December 2012, Caddell entered into a non-prosecution agreement with the United States under which it agreed to pay the United States $2 million and to cooperate in the ongoing criminal matter.
The civil case was handled by the Civil Division of the Department of Justice, with investigative assistance provided by the General Services Administration Office of Inspector General and the Defense Criminal Investigative Service.
Bullhead Woman Arraigned on Assault ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bullhead, South Dakota woman has been indicted by a federal grand jury for Child Abuse.
Leah Vandermeulen, age 48, was indicted by a federal grand jury on March 13, 2013. She appeared before U.S. Magistrate Judge William D. Gerdes on March 20, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 15 years' imprisonment, a $250,000 fine or both, and a period of supervised release of 2 years. The charge is merely an accusation and Vandermeulen is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy Morley is prosecuting the case.
Vandermeulen was released on bond pending trial. A trial date has not been set.
Brooke County Man Sentenced for Threatening Police OfficersRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA - A 42-year old Brooke County, West Virginia, resident was sentenced to prison for threatening to harm local law enforcement officers.
United States Attorney William J. Ihlenfeld, II, announced that JAMES W. RICHARD was sentenced to 25 months in federal prison to be followed by two years of supervised release as a result of his conviction for “Mailing Threatening Communications.” RICHARD admitted to sending letters from the Northern Regional Jail containing threats to harm a Wellsburg police officer as well as a Brooke County sheriff’s deputy. The officers he threatened were involved in the investigation of RICHARD for “Breaking and Entering”, “Domestic Assault”, and “Brandishing a Deadly Weapon.” RICHARD was later convicted of those charges and was serving time for those offenses when he mailed the letters.
“Whenever a law enforcement officer is threatened with bodily harm my office is going to do everything it can to make sure that those responsible for making the threats are held accountable,” said U.S. Attorney Ihlenfeld. “We must protect our police officers so that they can protect the communities that they bravely serve each day.”
RICHARD, who was sentenced to prison by Judge Frederick P. Stamp, Jr., was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The case was prosecuted by Assistant United States Attorney Stephen L. Vogrin and was investigated by the United States Postal Inspection Service.
Blooming Prairie Man Indicted for Producing, Distributing Child PornographyRead the Press Release
MINNEAPOLIS—A federal indictment unsealed late Friday charges a 40-year-old Blooming Prairie man with producing, distributing, and possessing child pornography. The indictment, which was filed on March 19, 2013, charges Brian Luke Broulik with one count of production of child pornography, one count of distribution of child pornography, and one count of possession of child pornography. The indictment was unsealed following Broulik’s initial appearance in federal court.
The indictment alleges that on May 12, 2012, Broulik induced a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of that conduct on his cell phone. It also alleges that on March 9, 2012, Broulik knowingly distributed similar depictions via a computer, and that on May 24, 2012, Broulik possessed similar depictions and videos.
If convicted, Broulik faces a potential maximum penalty of life in federal prison for production of child pornography, 40 years for distribution, and 20 years for possession. All sentences would be determined by a federal district court judge.This case is the result of an investigation by the Olmsted County Sheriff’s Office, and the Minnesota Child Exploitation Task Force, which is sponsored by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Kevin S. Ueland.
Production, distribution, and possession of child pornography is against the law. In addition to prosecuting these cases, the Justice Department is funding a study focused on the correlation between involvement in child pornography and hands-on sexual abuse of children. A 2008 study (The Butner Study) published in the Journal of Family Violence found that up to 80 percent of federal inmates incarcerated for possession, receipt, or distribution of child pornography also admitted to hands-on sexual abuse of children, ranging from touching to rape.
This case was brought as part of Project Safe Childhood (“PSC”), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney offices and the Justice Department’s Criminal Division, Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Blackfoot Man Arraigned on Assault ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Blackfoot, South Dakota man has been indicted by a federal grand jury for Assault With a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Stewart Bobtail Bear, Sr., age 41, was indicted by a federal grand jury on March 13, 2013. He appeared before U.S. Magistrate Judge William D. Gerdes on March 20, 2013 and pled not guilty to the indictment. The maximum penalty on each count upon conviction is 10 years' imprisonment, a $250,000 fine or both, and a period of supervised release of 3 years. The charges are merely accusations and Bobtail Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy Morley is prosecuting the case. Bobtail Bear was remanded to the custody of the U.S. Marshal. A trial date has not been set.
Blackduck Man Indicted for Involuntary ManslaughterRead the Press Release
MINNEAPOLIS—Last week in federal court, a 27-year-old Blackduck man was indicted in connection with the October 23, 2012, death of a young woman in Redby, Minnesota. On March 19, 2013, Dustin Michael Johnson was charged with two counts of involuntary manslaughter.
The indictment alleges that on October 23 Johnson killed the woman without malice. It alleges that Johnson was operating a motor vehicle while under the influence of alcohol on State Highway 15 and crashed. The victim, who was a passenger in the vehicle, was killed.
If convicted, Johnson faces a potential maximum penalty of eight years in prison on each count. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the Federal Bureau of Investigation and the Red Lake Tribal Police Department. It is being prosecuted by Assistant U.S. Attorney David P. Steinkamp.
Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Bakersfield Man Sentenced in ‘Operation Price is Right’Read the Press Release
FARGO - First Assistant U.S. Attorney Lynn Jordheim announced that on March 25, 2013, Henry Lee Paredez, Jr., 34, of Bakersfield, Calif., was sentenced before U.S. District Judge Ralph R. Erickson to 324 months (27 years) in prison for his role in a large scale methamphetamine trafficking and money laundering conspiracy that was the subject of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation entitled “Operation Price is Right.” As part of the sentence, Paredez, Jr. was ordered to forfeit $25,000 in cash.
First Assistant U.S. Attorney Lynn Jordheim said, “The stiff sentences sought by federal prosecutors in Operation Price is Right should be a warning to drug trafficking organizations about the risk of doing business in the Red River Valley. Investigations like Operation Price is Right protect our community by targeting the leaders of these organizations and bringing them to justice.”
Jordheim added, “I also want to recognize the outstanding efforts of Assistant United States Attorney and OCDETF Chief Chris Myers and his team from our office and from local, state and federal law enforcement in producing the outstanding results of Operation Price is Right. These dedicated men and women continue to work hard and produce great results for the citizens of North Dakota and the United States.”
On January 17, 2013, Ariana Jasmin Paredez, 23, wife of Paredez, Jr., was sentenced to 24 months for money laundering conspiracy. Henry Rosas Paredez, Sr., 66, was also sentenced to nine months for money laundering conspiracy.
During the course of the conspiracy that was the subject of the Operation Price is Right investigation, the organization transported approximately six (6) pounds of methamphetamine from sources of supply in Minneapolis-St.Paul and Bakersfield, California. This methamphetamine was distributed in the Fargo-Moorhead area.
Additional defendants who have previously been sentenced in Operation Price is Right include:
- Christina Barker - Moorhead, MN
Conspiracy to Distribute Controlled Substances - 276 months - Mary Roberts - Fargo, ND
Conspiracy to Distribute Controlled Substances - 228 months - Annette Avila - Fargo, ND
Conspiracy to Distribute Controlled Substances - 216 months - Ryan William Johnson - Valley City, ND
Conspiracy to Distribute Controlled Substances - 210 months - Betty Ann Schweigert - Fargo, ND
Conspiracy to Distribute Controlled Substances - 192 months - Thomas William Joseph Altringer - Moorhead, MN
Conspiracy to Distribute Controlled Substances -72 months - Holly Thomas - Moorhead, MN
Conspiracy to Distribute Controlled Substances - 33 months
The case was investigated by the Drug Enforcement Administration, Homeland Security Investigations, Moorhead and Fargo Police Departments.
Assistant U.S. Attorney Chris Myers prosecuted the case.
- Christina Barker - Moorhead, MN
Armed Bank Robbery Lands Another in Federal PrisonRead the Press Release
HOUSTON – A second person charged in the armed robbery of two local banks has been ordered to prison for more than 16 years, United States Attorney Kenneth Magidson announced today. Barry Ogilvie, 37, of Houston, pleaded guilty March 28, 2011, to two counts of aiding and abetting aggravated bank robbery and one count of discharging a firearm during a crime of violence.
Today, U.S. District Judge Vanessa Gilmore, who accepted the guilty plea, handed Ogilvie two 78-month sentences for the bank robbery charges to run concurrent. He was further ordered to serve 10 years for the firearm conviction which must be served consecutively for a total sentence of 198 months. Ogilvie will be required to serve a term of three years of supervised release following completion of the prison term.
On Sept. 9, 2010, Ogilvie and Andrea Steptore, 30, of Houston, both armed with firearms, robbed the Prosperity Bank located on the 2800 block of F.M. 1960 East in Houston. During the robbery, Ogilvie shot two rounds of ammunition into a wall. No one was injured, but behind the wall was a drive-thru teller stand. Zachary Ellis, 48, of Houston, had selected the bank,, scouted it prior to the robbery and shared in the proceeds.
Less than two weeks later, Ogilvie and Steptore attempted to rob the Vista Bank on the 14500 block of Northwest Freeway in Houston. They were both armed with semi-automatic pistols and wore masks. When they approached the bank, an off-duty police officer, who was working security at the bank, saw them and began firing at them. Steptore was able to flee in the getaway vehicle driven by a third individual, but Ogilvie was arrested. Odis Darrell Wheeler, 21, of Houston, stole a car which was used in the robbery and waited around the corner in a switch vehicle. Ellis had again selected the bank, told his co-conspirators he had scouted it prior to the robbery and planned to share in the proceeds.
Wheeler, Steptore and Ellis have all also pleaded guilty to aiding and abetting aggravated bank robbery. Ellis was sentenced last month to 97 months in federal prison. Wheeler and Steptore are set for sentencing April 15, 2013. At that time, they face up to 25 years in prison and a possible $250,000 fine. Steptore, who also pleaded guilty to brandishing a firearm during a crime of violence, also faces a minimum seven-year-term of imprisonment which must be served consecutively to the other sentences imposed.
The case was investigated by FBI Houston Bank Robbery Task Force. Assistant United States Attorney Jennie Basile is prosecuting the case.
Another Street Gang Leader Is Prosecuted in Federal CourtRead the Press Release
MINNEAPOLIS—This afternoon in federal court in St. Paul, the former leader of the “Young and Thuggin’” (“YNT”) street gang was sentenced for distributing crack cocaine. United States District Court Judge Susan Richard Nelson sentenced Trayjohn Lashawn Martin, age 21, of Minneapolis, to 87 months in federal prison on one count of aiding and abetting the distribution of crack cocaine.
Martin was indicted on September 7, 2011, and pleaded guilty on June 14, 2012. Because the federal justice system does not have parole, Martin will spend virtually his entire prison sentence behind bars.
In his plea agreement, Martin admitted that on June 13, 2011, he provided a confidential informant with approximately 24.7 grams of crack cocaine during a controlled purchase in north Minneapolis. Several days earlier, law enforcement officers had contacted Martin via telephone to set up the buy. It ultimately took place in the 2500 block of Fourth Street North.
Martin also admitted to the court that he conspired with others to possess with intent to distribute as well as to distribute at least 28 grams but less than 112 grams of crack cocaine.The YNT gang has been connected to a string of violence in North Minneapolis, which has included the trafficking of both narcotics and firearms.
This sentence comes on the heels of last week’s federal-court conviction of several members of the Native Mob street gang on charges ranging from racketeering to attempted murder.
This case is the result of an investigation by the Twin Cities Safe Streets Violent Gang Task Force, which is led by the Federal Bureau of Investigation and includes the Minneapolis Police Department. The task force’s mission is to investigate and target the most violent gangs operating in the Twin Cities or those gangs engaged in the large-scale trafficking of illegal drugs. The case was prosecuted by Assistant U.S. Attorney Steven L. Schleicher.Amarillo Man Faces Life in Federal Prison After Jury Convicts Him of Committing Armed Bank Robbery and Other Firearms OffensesRead the Press Release
Federal Jury Also Convicts Defendant’s Nephew on Federal Firearm Offense
AMARILLO, Texas — Following a five-day trial before U.S. District Judge Mary Lou Robinson, a federal jury has convicted Amarillo residents, Donald Joseph West, 49, and his nephew, David James West, 43, on all counts of a superseding indictment, returned by a federal grand jury earlier this year, charging felony offenses in connection with the November 5, 2012, armed robbery of FirstBank Southwest in Amarillo. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, Donald West was convicted on one count of aggravated bank robbery, one count of being a felon in possession of a firearm and one count of using a firearm during and in relation to a crime of violence (the bank robbery). An armed career criminal, Donald West faces a statutory sentence of not less than 22 years and up to life in federal prison and a $750,000 fine.
David West, who remains on bond, was convicted on one count of the unlawful sale and disposition of a firearm. He faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Sentencing for both defendants is set for June 4, 2013, before Judge Robinson.
The government presented evidence at trial that on Monday, November 5, 2012, a man wearing a mask, entered the FirstBank Southwest, located at 5701 Southwest 34th Street, in Amarillo, pointed a gun at a teller and demanded cash. The teller placed money in a bag and the man, later identified as Donald West, left the bank. He was arrested the next evening by officers with the Amarillo Police Department and special agents with the FBI and has been in custody since that time.
The government presented further evidence that during the robbery, Donald West used a semi-automatic pistol. When he was arrested, a firearm, that was given to him by David West shortly before the robbery, was recovered. Donald West is a convicted felon, having been convicted 1) in Randall County, Texas, of committing aggravated robbery with a deadly weapon in 1988; 2) in U.S. District Court for the Northern District of Texas, with conspiracy to commit bank robbery and bank robbery in 1987; and 3) in Randall County for evading detention in 2011. The government presented further evidence that David West knowingly gave the 9mm caliber pistol to his uncle, well knowing that he was a convicted felon.
The investigation was conducted by the FBI, the Amarillo Police Department and the Potter and Randall County Sheriff’s Offices. Assistant U.S. Attorneys Jeff Haag, Justin Cunningham and Christy Drake are prosecuting.
Algona Man Charged with Methamphetamine ConspiracyRead the Press Release
Ryan Gene Hansen, 31, from Algona, Iowa, has been charged with conspiracy to distribute methamphetamine. The charges are contained in a complaint filed on March 18, 2013, in United States District Court in Sioux City.
The Complaint alleges that, from about 2012 through March 2013, Hansen conspired to distribute methamphetamine in the Algona, Iowa, area.
If convicted, Hansen faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, a special assessment of $100, and a term of supervised release from five years to life following any imprisonment.
Hansen appeared March 18, 2013, in federal court in Sioux City and was held without bond.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Kossuth County Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-76.
23 March 2013
Four Chicago Men Sentenced to Lengthy Federal Prison Terms for Gun and Drug CrimesRead the Press Release
CHICAGO — Four Chicago men were sentenced to lengthy federal prison terms after being convicted in three separate cases of various firearms and narcotics charges, federal law enforcement officials announced today. Each case demonstrates the constant efforts of federal agencies — in these three instances, the Bureau of Alcohol, Tobacco, Firearms and Explosives – working together with the Chicago Police Department, to investigate and prosecute the violent combination of gangs, guns and drugs throughout the city.
RASHOD BETHANY and RICKY LONG, principal members of Bethany’s Gangster Disciples “Killing Crew,” who created a “zone of brutality” to protect their distribution of crack cocaine on the city’s far south side, were sentenced yesterday to 25 years and 15 years, respectively.
Separately, MICHAEL HENDERSON was sentenced yesterday to 19 years and 7 months in prison as an Armed Career Criminal for illegal possession of a firearm as a convicted felon. And WILLIE STOKES, a member of the Four Corner Hustlers street gang, was sentenced Tuesday to 10 years in prison as a career offender for illegal possession of two firearms and distribution of crack cocaine.
Bethany, 28, also known as “Fat Man,” and Long, aka “Li’l Ricky,” 32, both of Chicago, were sentenced by U.S. District Judge Harry Leinenweber following a three-day hearing that began Monday in Federal Court. Both were arrested in May 2006 and later pleaded guilty to narcotics charges in connection with the operation of two drug houses, located at 12012 South Emerald and 11952 South Eggleston, in an area dubbed “Trigger Town.”
The government presented evidence and testimony detailing both defendants’ involvement in murders, attempted murders, and beatings of individuals, including other drug dealers, a witness to a drug-related shooting, and workers at their crack houses. A Chicago police detective testified that witnesses to violence attributed to Bethany and his crew often were too fearful to cooperate with police, preventing Bethany from ever being charged with any specific murders.
“The defendants instituted a regime of control and intimidation to make sure that they were able to sell their crack,” Assistant U.S. Attorney Kruti Trivedi argued at the hearing. Assistant U.S. Attorney Tony Garcia also represented the government.
In a separate case, Henderson, 49, of Chicago, was sentenced yesterday by U.S. District Judge Samuel Der-Yeghiayan to 235 months in prison after being convicted at trial in March 2012 of possessing a firearm as a previously convicted felon. On Aug. 10, 2010, Henderson and a passenger were driving around at night in the area near West Diversey and North Sacramento on the city’s west side. Henderson had a loaded gun and his passenger was carrying heroin packaged for sale. Chicago Police officers stopped Henderson for committing a traffic violation and saw a gun on the driver’s seat. Henderson’s 10 prior convictions, including aggravated battery and drug trafficking, qualified him as an Armed Career Criminal under federal law, subjecting him to a mandatory minimum sentence of 15 years in prison. The Cook County State’s Attorney’s Office referred Henderson’s case for federal prosecution as part of Project Safe Neighborhoods because of the likelihood of a more substantial sentence in Federal Court. The government was represented by Assistant U.S. Attorneys Andrianna Kastanek, Patrick King, and Julie Porter.
In the third case, WILLIE STOKES, 37, aka “Flukey,” of Chicago, was sentenced on Tuesday to 10 years in prison by Judge Leinenweber after pleading guilty last October to being a felon-in-possession of a firearm, making him a career offender under federal law. Stokes, a member of the Four Corner Hustlers street gang, admitted that he sold two firearms and an ounce of crack cocaine to an undercover ATF agent in 2009. After serving a state sentence for shooting a man in the head, Stokes was warned that any subsequent firearms offense could subject him to federal prosecution. The government was represented by Assistant U.S. Attorney Andrew DeVooght.
The sentences were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Larry Ford, Special Agent-in-Charge of the Chicago Office of ATF; and Garry McCarthy, Superintendent of the Chicago Police Department
22 March 2013
Yonkers Resident Sentenced to 41 Months Imprisonment for Impersonating an IRS Officer in Furtheranceof A Fraudulent Tax Refund SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that JARED BREWTON was sentenced in White Plains federal court to 41 months in prison for his participation in a fraudulent tax refund scheme involving identity theft, subscribing to false and fraudulent tax returns, and impersonating an IRS employee and a New York State Department of Labor official. BREWTON pled guilty in July 2012 to a six-count Indictment before U.S. District Judge Vincent L. Briccetti, who also imposed today’s sentence.
U.S. Attorney Preet Bharara stated: “Jared Brewton concocted an elaborate charade in his efforts to steal thousands of dollars from the IRS. His substantial sentence should deter others who contemplate doing the same thing.”
According to the previously filed Indictment:
From about 2006 through about 2010, BREWTON engaged in a scheme to obtain fraudulent tax refunds from the IRS. BREWTON carried out this scheme by preparing and causing to be sent to the IRS various federal income tax returns – in his own name and in the names of others – that fraudulently inflated income and withholding figures. For example, BREWTON falsely reported that his wages for the calendar year 2006 were $783,981 and that $359,750 in taxes had been withheld by his employers. BREWTON also fraudulently obtained tax refunds in other people’s names by stealing the names or defrauding the people into giving him their personal identifying information, then filing fraudulent tax returns in their names, and directing that the resulting refunds be sent to his address.
To further the scheme, on at least one occasion BREWTON posed as someone affiliated with the New York State Department of Labor in order to persuade a taxpayer to provide him with the taxpayer’s name, date of birth, and Social Security number. On multiple other occasions, BREWTON posed as an employee of the IRS claiming to be an “Audit Group Representative” named “Susan Waters.”
Mr. Bharara praised the outstanding investigative work of the Internal Revenue Service, Criminal Investigations, and the U.S. Treasury Inspector General for Tax Administration.
This case is being handled by the Office's White Plains Division. Assistant U.S. Attorney John P. Collins, Jr. is in charge of the prosecution.
Williamson County Man Sentenced to More Than Twelve Years for Engaging in Methamphetamine ConspiracyRead the Press Release
On March 22, 2013, Mitchell R. Owens, 32, of Herrin, IL, was sentenced in United States District Court in Benton on a one-count indictment charging conspiracy to manufacture methamphetamine, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced.
Owens, who had previously pled guilty to the methamphetamine charge, was sentenced to 151 months (twelve years and seven months) in prison, 8 years of supervised release, and fined $600. The offense occurred between 2010 and January 2012, in Williamson, Jackson, and Franklin Counties. Evidence at the plea and sentencing hearings established that Owens was involved with others in the manufacture of methamphetamine. During the conspiracy, Owens participated in numerous methamphetamine “cooks” and also obtained over 124 grams of pseudoephedrine for the purpose of manufacturing methamphetamine.
The ongoing investigation is being conducted by the Drug Enforcement Administration and Jackson County Sheriff’s Office, with the assistance of the Murphysboro Police Department, Marion Police Department, Williamson County Sheriff’s Office, Illinois State Police, and Mt. Vernon Police Department.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary L. Hatton
www.usdoj.gov/usao/inn/ [email protected]
South Bend, Indiana—The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Jaleen McGee, 20, of South Bend, Indiana, a defendant in the case US v Shaw et al., pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of racketeering.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 6/18/13.
Alvin Blade, III, 21, of South Bend, Indiana, a defendant in the case US v Shaw et al., pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of carrying a firearm and using a firearm during a drug trafficking crime/crime of violence.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 6/13/13.
The charges against McGee and Blade were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation and the South Bend Police Department.The case in which both are charged is being prosecuted by Assistant United States Attorney Donald Schmid.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
David Dircks, 53, of, South Bend, Indiana, a defendant in the case US v Wells et al., was sentenced by District Judge Robert Miller, Jr. to 114 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.According to documents filed by the government in this case, Dircks has multiple prior felony convictions including possession of controlled substances (1992, 2004, 2007), forgery (1992), and residential burglary (1996). He has many other convictions as well, including forgery (misdemeanor), criminal trespass, possession of a fraudulent ID card, theft, deceptive practice, false informing, Illinois vehicle code offenses, possession of drug paraphernalia, possession of marijuana, disorderly conduct, panhandling, hit and run, resisting a police officer, domestic battery, and battery. He committed his federal offenses while he was on probation in LaPorte County, Indiana. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the South Bend Police Department.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ [email protected]
Hammond, Indiana—The United States Attorney’s Office announced the following activity in Federal Court:
INDICTMENT:
Rebhi Mohammad, 59, Ola Mohammad, 32, and Abdkdar Mohammad, 28, of Chicago, Illinois, were charged in a Superceding Indictment with conspiracy to defraud the USDA “SNAP” program (Supplemental Nutrition Assistance) and wire fraud by claiming that they and the business known as Moses Foods were legitimately entitled to reimbursements when in fact they were trading cash and ineligible items for SNAP benefit redemptions.These charges were filed as the result of an investigation by the Federal Bureau of Investigation and the United States Department of Agriculture Office of the Inspector General.This case has been assigned to and will be prosecuted by Assistant United States Attorney Diane Berkowitz.
PLEAS:
Dwayne Crawford, 40, of Merrillville, Indiana, pled guilty before Magistrate Judge Andrew Rodovich to the felony offense of conspiracy to possess with intent to distribute and distribute 100 kilograms or more of marijuana, possession with intent to distribute and distribute 500 grams or more of cocaine and engaging in a monetary transaction with criminally derived property of a value greater than $10,000 .Magistrate Rodovich is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 5/17/13.These charges were filed as a result of an investigation by the Federal Bureau of Investigation GRIT Task Force.This case is being prosecuted by Assistant United States Attorney Jacqueline Jacobs.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Miguel Chavez, 46, of Chicago, Illinois, was sentenced by District Judge Joseph Van Bokkelen to 41 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of possession with the intent to distribute 500 grams of more of methamphetamine.This case was the result of an investigation by the Drug Enforcement Administration and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.This case was prosecuted by Assistant United States Attorney Joshua Kolar.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ [email protected]
Fort Wayne, Indiana—The United States Attorney’s Office announced the following activity in Federal Court:
COMPLAINTS:
Glenda R. Brickey, 27, of Ligonier, Indiana, was charged in a Complaint with possession with the intent to distribute methamphetamine.These charges were filed as the result of an investigation by the Drug Enforcement Administration and the Ligonier Police Department.This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony Geller.
Juan Sandoval, 45, of Fort Wayne, Indiana was charged in a Complaint with distribution of methamphetamine.These charges were filed as the result of an investigation by the Drug Enforcement Administration and the IMAGE Drug Task Force.This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony Geller.
Javier Madrigal, 48, and Lizbeth Correa, 34, of Wawaka, Indiana, were charged in a Complaint with distribution and possession with the intent to distribute methamphetamine.These charges were filed as the result of an investigation by the Drug Enforcement Administration and the Ligonier Police Department and the IMAGE Drug Task Force.This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony Geller.
DISPOSITIONS:
Michael Watkins, 55, of Fort Wayne, Indiana, was sentenced by District Judge Theresa Springmann to 121 months imprisonment and 60 years of supervised release after pleading guilty to the felony offenses of distribution child pornography and possession of child pornography.According to documents filed by the government in this case, a d etective with the Noblesville, Indiana Police Department, located the IP address of a user who possessed, and was advertising for share, image and video files that had been previously identified as child pornography in other investigations by law enforcement.A response to a summons on the internet service provider revealed that the IP address belonged to Watkins.Pursuant to a federal search warrant, law enforcement recovered a computer, external hard drive and compact discs which contained images and videos of minors engaging in sexually explicit conduct.This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Noblesville Police Department.This case was prosecuted by Assistant United States Attorney Lesley Miller Lowery.
Waterbury Man Admits Making False Statements to Federal Agents Conducting Tax Fraud InvestigationRead the Press Release
March 22, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that JOHN B. MAIA, 73, of Waterbury, pleaded guilty today before Chief United States District Judge Alvin W. Thompson in Hartford to one count of making a false statement to federal law enforcement agents investigating his filing of false tax returns.
According to court documents and statements made in court, on April 14, 2010, MAIA submitted to a voluntary interview with special agents of the Internal Revenue Service – Criminal Investigation who were conducting an investigation into whether MAIA had overstated deductions for charitable contributions and listed fictitious business expenses on his federal tax returns from 2005 through 2008. During the interview, MAIA falsely stated that the charitable contributions and business expenses were legitimate and that he had provided supporting documentation for the charitable contributions and business expenses to his tax preparer.
Chief Judge Thompson has scheduled sentencing for June 18, 2013, at which time MAIA faces a maximum term of imprisonment of five years and a fine of up to $250,000.
This case is being investigated by the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Christopher Mattei and Eric Glover.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Utah County Man Pleads Guilty to Fraud, Tax Charge in Connection with Kickback Scheme on Construction Invoices; Embezzled About $800,854 from Tennessee CompanyRead the Press Release
SALT LAKE CITY – Darin W. Bare, age 47, of Eagle Mountain, Utah, pleaded guilty to mail fraud and filing a false tax return in federal court this week, admitting that he embezzled $800,854.63 from Clayton Homes, a company headquartered in Tennessee that specializes in building pre-manufactured and modular homes.
According to a Felony Information filed in the case, Bare managed the Salt Lake City sales office of a subsidiary of Clayton Homes and was responsible for hiring contractors and subcontractors to improve property lots for landscaping and home construction. The charging document alleged Bare devised and executed a scheme to obtain payment from Clayton Homes through the use of false invoices.
As a part of a plea agreement reached with federal prosecutors, Bare admitted that he conspired with a contractor, identified in court documents as D.J.H., to create and submit false invoices to Clayton Homes showing that work had been done on property lots sold by his office when, in fact, the work had not been done. D.J.H., a resident of Utah County, was the owner and operator of a general construction company known as H.B.
Bare admitted that he instructed D.J.H. on how much to charge Clayton Homes on the false invoices. Bare then entered the invoices into the Clayton Homes computer system. Relying on Bare’s representations on the invoices, Clayton Homes processed the false invoices, issued checks to D.J.H.’s business, and mailed the checks to Bare. Bare admitted he would then deliver the payments to D.J.H., who would provide him with a kickback. Bare said he deposited the checks into a checking account in another person’s name to avoid detection. Over time, Bare embezzled $800,854.63 through the fraud.
Bare also admitted that he did not report any of the money he embezzled from Clayton Homes on any of his tax returns. According to the plea agreement, Bare signed and filed a tax return for 2009 that failed to report an additional $482,639 in income for the tax year.
Bare, who waived indictment and entered his guilty pleas Wednesday, is scheduled to be sentenced May 30, 2013, at 2:30 p.m. in U.S. District Judge Clark Waddoups’ courtroom. He faces up to 20 years in prison for the mail fraud conviction and up to 3 years in prison for the tax conviction. He also agreed to pay restitution as a part of his plea agreement. The amount of restitution and the schedule of payments will be determined as a part of the sentencing proceeding.
The case is being prosecuted by the U.S. Attorney’s Office in Salt Lake City and investigated by special agents of IRS Criminal Investigation and the FBI.
Two MS-13 Street Gang Members Convicted in Federal Court on Racketeering, Murder and Firearms ChargesRead the Press Release
Following six weeks of trial, a federal jury in Central Islip today returned a verdict convicting Salvadoran street gang members, Heriberto Martinez, also known as “Boxer,” and Carlos Ortega, also known as “Silent” or “Silencio,” on federal criminal charges, including murder, assault with a dangerous weapon, firearms offenses, and conspiracy. Both defendants are facing mandatory life sentences as a result of their convictions. Sentencing is scheduled for September 10, 2013 before United States District Judge Joseph F. Bianco.
The convictions were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office, and Thomas V. Dale, Commissioner of the Nassau County Police Department.
At trial, the government proved that the defendants Martinez and Ortega, along with their fellow MS-13 gang members, killed multiple victims between February and March of 2010:
(1) Martinez was convicted in connection with the execution-style murder of Vanessa Argueta, a 19-year-old woman, in Central Islip, New York, on February 5, 2010. Martinez also was convicted of being an accessory after-the-fact in the murder of Argueta and her 2-year-old son, Diego Torres, who was shot and killed during the same incident. Martinez , the leader of the Coronados Clique of the MS-13, authorized the murder of Argueta and then helped three of his co-conspirators evade arrest in New York and flee to El Salvador after the commission of the murders. The bodies of Argueta and Torres were found in a secluded wooded area in Central Islip. Argueta had been shot in the head and chest, and Torres had been shot twice in the head.
(2) Ortega was convicted in connection with the murder of 21-year-old David Sandler and the attempted murder of 20-year-old Aaron Galan in Brentwood, New York on February 17, 2010. Ortega and his fellow MS-13 gang members lured Sandler, whom the MS-13 believed was a member of the rival Latin Kings street gang, to Timberline Drive in Brentwood, under the pretext of wanting to buy marijuana from him. Once Sandler arrived, Ortega shot him in the face at close range, killing him. Ortega also shot Sandler’s close friend, Galan, who was with Sandler at the time, in the face. Miraculously, Galan survived.
(3) Martinez also was convicted in connection with the execution-style murder of 23-year-old Nestor Moreno, a security guard at El Rancho Bar and Grill in Hempstead, New York on March 6, 2010. In late February 2010, Heriberto Martinez and several other members of the MS-13 were involved in a dispute with El Rancho employees over an unpaid bar tab. The dispute escalated into a physical altercation during which Martinez was sprayed with pepper spray. Prior to leaving El Rancho, Martinez identified himself as an MS-13 member to the victim and told him, “It’s not going to end like this.” On March 6, 2010, Martinez, along with four co-conspirators, returned to El Rancho and carried out that threat, shooting Moreno in the head at point-blank range. The gun that Martinez used to kill Moreno was the same semi-automatic handgun used to kill Argueta and her son, one month earlier.
(4) Both Martinez and Ortega were convicted in the March 17, 2010 murder of Mario Alberto Canton Quijada in Far Rockaway, New York. Quijada, who was a fellow member of the MS-13, was killed because of his reluctance to “put in work,” or attack rival gang members on behalf of the MS-13. On March 17, 2010, Quijada was lured to the beach in Far Rockaway under the guise of attacking rival gang members. Once alone on the beach, the MS-13 gang members tried to shoot Quijada in the head with the same semi-automatic handgun used in murders of Moreno, and Argueta and her son. However, the gun jammed. Undeterred, Martinez, Ortega and the other MS-13 members set upon Quijada with knifes and machetes and hacked him to death.
The convictions of Martinez and Ortega are the latest in a series of federal prosecutions by this Office targeting New York members of the MS-13, a violent international street gang comprised primarily of immigrants from El Salvador, Honduras and Guatemala. With numerous branches, or “cliques,” the MS-13 is the largest street gang on Long Island. Since 2002, more than 200 MS-13 members, including more that two dozen clique leaders, have been convicted on federal felony charges in the Eastern District of New York. More than 50 of those MS-13 members have been convicted on federal racketeering charges. Seventeen of those defendants have received sentences of 10 years or more, and more than a dozen MS-13 defendants have been sentenced or are awaiting sentencing on murder convictions. These prosecutions are the product of investigations led by the FBI Long Island Gang Task Force, comprised of agents and officers of the FBI, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Department and the Rockville Centre Police Department.
“Instead of working to lift up their immigrant community, Martinez and Ortega chose to join the killing machine known as MS-13,” stated United States Attorney Lynch. “They devoted their energies to spreading senseless violence through the neighborhoods of Long Island, destroying their victims’ lives and the peace in the community. The range of victims, from a bouncer doing his job, to the cases of mistaken identity, to the fellow gang member who didn’t want to kill, to a young mother and her toddler, underscores these defendants’ callous disregard for human life. They will soon spend the rest of their own lives contemplating the choices they made. This case demonstrates the on-going commitment of this Office and the FBI’s Long Island Gang Task Force to combat the violence perpetrated by the MS-13 and other gangs.” Ms. Lynch extended her grateful appreciation to each of the law enforcement agencies for their assistance in this case.
FBI Assistant Director-in-Charge Venizelos stated, “The wanton disregard for human life displayed by Martinez and Ortega is a graphic reminder of why MS-13 poses a threat to public safety on Long Island. The crimes for which they have been convicted include four murders committed in a six-week period in 2010. The FBI will continue to place a high priority on policing and curtailing gang violence on Long Island.”
Nassau County Police Commissioner Dale stated, “ In Nassau County we have zero tolerance for gang activity. These two defendants are particularly vicious gang members who were brought to justice by the Long Island Gang Task Force and the United States Attorney for the Eastern District of New York. The Nassau County Police Department’s participation in this task force is critical for ensuring that the most dangerous predators will be removed from our communities.”
The government’s case is being prosecuted by Assistant United States Attorneys John J. Durham, Raymond A. Tierney and Carrie N. Capwell.
The Defendants:
Heriberto Martinez, also known as “Boxer”
Age: 26Carlos Ortega, also known as “Silencio” and “Silent”
Age: 23