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Wednesday 6 February 2013
Overland Park Man Pleads Guilty in $16.9 Million Drug ConspiracyRead the Press Release
KANSAS CITY, KAN. – A man from Overland Park, Kan., has pleaded guilty to helping a drug trafficking organization distribute more than $16.9 million worth of marijuana and cocaine in Kansas, the U.S. Attorney's Office for the District of Kansas announced today.
Samuel Villeareal, III, 33, Overland Park, Kan., pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine and marijuana and to maintain a residence in furtherance of drug trafficking. Villeareal was one of 43 defendants charged in a superseding indictment filed Oct. 31, 2011, in U.S. District Court in Kansas City, Kan. An earlier indictment in the case had been announced July 12, 2012.
In his plea, Villeareal admitted that he bought pound quantities of marijuana from co-defendant Los Rovell Dahda and others, who were operating a marijuana and cocaine distribution ring in Lawrence, Kan. During the course of the conspiracy, the traffickers made more than $16.9 million dollars selling marijuana and cocaine. In 2007, the conspirators shifted away from buying drugs from Mexico and Canada and began obtaining high grade marijuana from indoor and outdoor grow operations in California. The marijuana would be purchased on the front end from California for between $1,800 and $2,800 a pound and then sold to others for between $3,500 to $4,800 a pound.
On May 16, 2011, investigators executed a search warrant at Villeareal's residence at 816 Crestline Drive in Lawrence, Kan. They seized $11,340 cash, four cellular phones and 44 grams of marijuana. Villeareal's residence was located within 1,000 feet of West Middle School. Investigators learned that Villeareal had removed 10 pounds of marijuana from the residence before the search warrant was served. A search of Villeareal's phones revealed text messages with numerous customers in Lawrence who Villearaeal was supplying with marijuana.
Sentencing will be set for a later date. Villeareal faces a penalty of not less than 10 years and not more than life and a fine up to $10 million.
Agencies involved in the investigation and the arrest of defendants include the Douglas County Sheriff’s Office, the Johnson County Sheriff’s Office, the Lawrence Police Department, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Internal Revenue Service, the U.S. Postal Service, the Alameda County, Calif., Sheriff’s Drug Task Force, the Kansas Bureau of Investigation, the Lenexa Police Department, the Overland Park Police Department, the Kansas City, Mo., Police Department, the Kansas City, Kan., Police Department and the Hayward, Calif., Police Department. Assistant U.S. Attorney Terra Morehead is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.Oklahoma Couple Sentenced to Fifteen Years in Prison for Conviction on Methamhetamine Trafficking, Firearms and Immagration ChargesRead the Press Release
ALBUQUERQUE – Rafael Goxcon-Chagal, 52, and Maria Vianey Medina-Copete, 36, both residents of Tulsa, Okla., each was sentenced today to a 15-year term of imprisonment for their narcotics trafficking and firearms convictions. Goxcon-Chagal will be on supervised release for five years after completing his prison sentence. Medina-Copete, a Mexican national who also was convicted of re-entering the United States without authorization after having previously been deported, will be deported after completing her prison sentence.
The sentences were announced by U.S. Attorney Kenneth J. Gonzales and Special Agent in Charge Joseph M. Arabit of the El Paso Field Division of the DEA.
A federal jury convicted Goxcon-Chagal and Medina-Copete on Aug. 10, 2012, of all counts in an indictment that charged the couple with (1) conspiracy to violate the federal narcotics trafficking laws; (2) with possession of methamphetamine with intent to distribute; and (3) using a firearm during a drug trafficking offense. The indictment also charged MedinaCopete with (4) the unlawful possession of a firearm by an illegal alien; and (5) illegal re-entry by a removed alien.
According to the evidence at trial, on June 28, 2011, a New Mexico State Police officer executed a routine traffic stop on Interstate 40 of a vehicle driven by Goxcon-Chagal with Medina-Copete as a passenger. When the officer made contact with Goxcon-Chagal, he observed that Goxcon-Chagal was unusually nervous. Goxcon-Chagal proffered an Oklahoma driver's license but could not locate the registration and insurance information for the vehicle. When Medina-Copete managed to locate the vehicle information, the officer noted that the owner of the vehicle was another person with a Las Vegas, Nev., address and that the vehicle had only recently been insured. The officer also noted a strong chemical odor in the vehicle and observed multiple air fresheners in the vehicle.
After getting conflicting information regarding their travel and the identity of the owner of the vehicle from Goxcon-Chagal and Medina-Copete, the officer asked Goxcon-Chagal if the couple were transporting drugs, weapons or other contraband in the vehicle. Goxcon-Chagal denied that he was transporting contraband. The then officer requested and obtained consent from Goxcon-Chagal and Medina-Copete to search the vehicle. After a narcotics canine alerted to the front passenger side of the vehicle, the officer located a false compartment behind the passenger side airbag which contained two packages of white glass-like substances which appeared to be methamphetamine. Chemical analysis later revealed that the packages contained more than a kilogram of methamphetamine.
Later, when a DEA agent searched a duffle bag that Medina-Copete identified as her property, he uncovered a Walther P99 pistol wrapped in a towel. When the agent asked about the pistol, Medina-Copete said that the pistol belonged to Goxcon-Chagal.
Medina-Copete previously had been deported from the United States to Mexico at Otay Mesa, Calif., on Oct. 24, 2007, and re-entered the United States without authorization.
Goxcon-Chagal and Medina-Copete have been in federal custody since they were arrested on June 28, 2011.
The case was investigated by the DEA and the New Mexico State Police, and was prosecuted by Assistant U.S. Attorneys Jon K. Stanford and Raul Torrez.
Oklahoma City Man Indicted for Threat to Commit Violence in WyomingRead the Press Release
Oklahoma City, Oklahoma – GLENN ALLEN KIRKHAM, 34, of Oklahoma City, Oklahoma, has been indicted by a federal grand jury for making a threat to commit violence in Casper, Wyoming, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
The indictment alleges that on January 14, 2013, public officials in and around Casper, Wyoming, received numerous reports from various sources of a potential imminent attack in the city that had been posted on 4chan.org, an internet-based bulletin board service. Among other precautions, officials placed several dozen public schools in Casper, Wyoming, and Natrona County, Wyoming, on lockdown.
If convicted, Kirkham faces up to five years in prison and a $250,000 fine, plus mandatory restitution. The public is reminded that the indictment is merely an accusation and that the defendant is presumed innocent unless and until proven guilty. Reference is made to the indictment and other public filings for further information.
This case is the result of an investigation by the Federal Bureau of Investigation and the Casper Police Department in Wyoming. The case is being prosecuted by Assistant U.S. Attorneys Mark A. Yancey and Scott E. Williams.
Officer of Now Defunct New Frontier Bank Pleads Guilty to Charges Related to the Bank's CollapseRead the Press Release
DENVER – Gregory William Bell, age 54, of Weld County, Colorado, pled guilty yesterday before Senior U.S. District Court Judge Lewis T. Babcock to one count of false bank entries, one count of bank misapplication, one count of bank fraud and one count of money laundering, the United States Attorney’s Office, the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation and the FDIC-Office of the Inspector General announced. Bell, who appeared at the hearing free on bond, is scheduled to return on April 30, 2013 for sentencing. The judge continued Bell’s bond.
Bell was originally charged by Information on December 5, 2012. According to the facts contained in the Information as well as the stipulated facts contained in the plea agreement, Gregory Bell was an officer of New Frontier Bank, which was insured by the Federal Deposit Insurance Corporation. On October 31, 2005, Bell made a false entry in a bank book, report or statement with intent to defraud the bank and deceive one or more of the bank’s officers. Specifically, the defendant allegedly prepared a form entitled “Credit Presentation and Committee Approval” for a $5,583,500 loan to two individuals on which he failed to disclose that a certificate of deposit, the value of which was $106,759.00, which the two individuals pledged as collateral, in fact belonged to another individual and that Bell would benefit personally as a result of the loan. On March 14, 2008, Bell willfully misapplied approximately $662,045.79 of New Frontier’s funds.
On June 17, 2008, and continuing until September 9, 2008, Bell devised and participated in a scheme to defraud the bank and to obtain moneys owned by and under the custody and control of the bank by means of materially false and fraudulent pretenses. As part of the scheme, Bell, knowing that state and federal regulators had directed New Frontier Bank to raise capital, arranged for eight bank customers to borrow money from the bank and use the proceeds of those loans to purchase shares of bank stock so New Frontier could inject some of the money paid for the stock into the bank. As part of the scheme, Bell failed to disclose the deteriorating condition of the bank to its customers. He also prepared and caused others to prepare bank forms entitled “Credit Presentation and Committee Approval” for the eight loans described above. Bell failed to disclose on the credit presentation forms that proceeds of the loans would be used to purchase shares of stock in New Frontier Bancorp.
Bell also allegedly caused false and misleading statements to be included on the credit presentation forms. He presented the credit presentation forms to bank loan committees and caused other persons to present them to bank loan committees. As part of the scheme, Bell caused the bank to loan approximately $20,145,979.23 to the eight borrowers mentioned above, and caused those borrowers to use approximately $4,310,215.00 of those proceeds to purchase shares of stock in the bank. On August 29, 2008, Bell executed a scheme by causing the bank to transfer approximately $260,000.00 of the proceeds of one of the bank loans to an account of one of the borrowers of that loan.
On June 27, 2008, Bell conducted a financial transaction affecting interstate commerce. Specifically, he deposited a check in the amount of $160,000.00 into his account at the bank. The transaction involved the proceeds of a specified unlawful activity, knowing that the transaction was designed in whole or in part to conceal and disguise the source and the ownership of the proceeds of the unlawful activity.
Finally, the Information includes an asset forfeiture allegation, which states that Bell shall forfeit any real or personal property that was involved in the offenses, or any property constituting or derived from the proceeds obtained from the offenses, and any property traceable to any property involved in said offenses.
Bell faces one count of false bank entries, one count of misapplication, and one bank fraud. Each of those counts carry a penalty of not more than 30 years in federal prison and a fine of up to $1,000,000. He also faces one count of money laundering. If convicted of money laundering Bell faces not more than 20 years in federal prison and a fine of up to $500,000, or twice the value of the property involved in the transaction, whichever is greater.
“With this guilty plea, we are one step closer to addressing the fraud and abuse at New Frontier Bank that helped lead to its failure,” said U.S. Attorney John Walsh.
“The FBI will continue to aggressively investigate bank officers and directors when their criminal actions contribute to the failure of financial institutions,” said FBI Denver Special Agent in Charge James Yacone.
“These failures can have a significant impact on the stability of our banking system, and it is the FBI’s duty to investigate bank personnel who violate their fiduciary obligations to the institution and depositors.”
“The IRS, along with our law enforcement partners, will vigorously pursue bank officers and others who defraud banks,” said Stephen Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office.“The Federal Deposit Insurance Corporation Office of the Inspector General is pleased to join our law enforcement colleagues in announcing this guilty plea. We are particularly concerned when officers of a bank abuse their positions of trust and engage in schemes to deceive the regulators. We will continue to pursue such offenders in the interest of maintaining the integrity of our nation’s banks and protecting the Deposit Insurance Fund,” said FDIC Inspector General Jon T. Rymer.
This case was investigated by the Federal Bureau of Investigation (FBI), the Internal Revenue Service – Criminal Investigations (IRS-CI), and the Federal Deposit Insurance Corporation – Office of the Inspector General (FDIC-OIG).
The defendant is being prosecuted by Assistant U.S. Attorneys Suneeta Hazra.
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New Albany, Indiana Man Sentenced to 10 Years in Prison for Online Enticement of A Minor Female and Transporting the Female Across State Lines to Engage in Illegal Sexual ActivityRead the Press Release
– Met the 14-year-old Louisville minor on the Internet
– Minor was picked up from her home and later found at a bowling alleyLOUISVILLE, Ky. – A New Albany, Indiana, man who used the Internet to induce a minor female to engage in sexual activity and transported her across state lines for illegal sexual purposes was sentenced today in U. S. District Court by U. S. District Judge John G. Heyburn, II, to 10 years in prison followed by a life term of Supervised Release, announced David J. Hale, United States Attorney for the Western District of Kentucky. The defendant, Robert L. Real, III, pleaded guilty to the charges on November 1, 2012. There is no parole in the federal system.
“The significant sentence handed down today should send a message to anyone with similar criminal intentions. If you seek to victimize a child, you will face a determined and coordinated law enforcement effort dedicated to the protection of our children,” stated U.S. Attorney David J. Hale. “We are grateful for the good work of the Louisville Metro Police Department, the Louisville Division of the FBI and the Kentucky Internet Crimes Against Children Task Force. My office will continue to work closely with our federal, state and local law enforcement partners to bring those who would prey upon and victimize children to justice.”
Real, age 21, admitted that he had communicated with a 14-year-old female on Badoo.com, picked her up from her home in Jefferson County, Kentucky, and transported her across state lines to his residence in Indiana. He further admitted that at his residence in Indiana, he engaged in sexual activity with the minor, including intercourse. The next day, he left the girl at a bowling alley in Jefferson County, Kentucky. The two began their online communications in early May 2012.
The 14-year-old had been reported missing to the Louisville Metro Police Department by her parents on June 8, 2012. The minor’s parents learned that she had been communicating with an adult, “Robert” who lived in Indiana, on a social networking website called BADOO.com. The FBI Cyber Crimes Task Force was notified of the incident and initiated an investigation. More than 2,500 messages between “Robert” and the minor were recovered by law enforcement officials on the family’s computer and minor’s laptop.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Louisville Metro Police Department and the Federal Bureau of Investigation as part of Kentucky’s Internet Crimes Against Children Task Force conducted the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Mike Yassine Enters Guilty Plea in Tax CaseRead the Press Release
In Austin this afternoon, Hussein Ali “Mike” Yassine, age 40, pleaded guilty to engaging in a tax fraud scheme using his Austin nightclubs.
Appearing before United States District Judge Sam Sparks, Yassine pleaded guilty to one count of procuring the preparation of a false Income Tax Return. By pleading guilty, Yassine admitted that in October 2010, he provided a professional tax preparer with false information to be included in Yassine’s 2009 federal Income Tax Return. According to court documents, figures provided by Yassine understated by hundreds of thousands of dollars the actual gross receipts generated by his downtown Austin night clubs--Spill, Qua, Kiss & Fly, Pure and Malaia—in 2009. As a result of his guilty plea, Yassine faces up to three years in federal prison and a maximum $250,000 fine. Sentencing has yet to be scheduled.
Yassine is currently in federal custody. Last month, Yassine was sentenced to 151 months in federal prison after a jury convicted him on money laundering charges. The jury found that in 2008 and 2009, Yassine used several business establishments, including the above mentioned night clubs, to launder over $200,000 in cash, which he believed to be the proceeds of narcotics trafficking.
This investigation was conducted by agents and investigators with the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation and the Austin Police Department together with the Drug Enforcement Administration, Texas Attorney General’s Office, Texas Alcoholic Beverage Commission and the Texas Comptroller’s Office. Assistant United States Attorneys Gregg Sofer and Alan Buie are prosecuting this case on behalf of the Government.
Manhattan U.S. Attorney Announces Arrest of Former Accounting Firm Partner for Stealing Nearly $4 Million in Client PaymentsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Keith Milke, the Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), today announced the arrest of CRAIG B. HABER, a former partner of a global accounting firm, for stealing nearly $4 million in client payments intended for the firm. HABER was arrested by Postal Inspectors this morning at his residence in New York, New York, and will be presented this afternoon before U.S. Magistrate Judge Debra Freeman in Manhattan federal court.
Manhattan U.S. Attorney Preet Bharara said: “From his perch at a prestigious accounting firm, Craig Haber allegedly betrayed his partners, by deceiving the firm’s clients in order to rob the firm blind – diverting millions of dollars of client payments into his own pocket. Fraud is always serious, but it is especially alarming when, as alleged here, it is committed by professionals who are supposed to be gatekeepers responsible for ensuring financial rectitude.”
USPIS Inspector-in-Charge Keith Milke said: “Mr. Haber's alleged abuse of the trust given to him by his clients and employer is a classic example of greed overcoming honest business practices. His arrest should serve as a reminder that whenever someone uses the US Mail for illegal activities Postal Inspectors will bring them to justice.”
According to the allegations in the Complaint unsealed today in Manhattan federal court:
From 1993 through July 2012, HABER was a partner at a global accounting firm headquartered in Chicago, Illinois, that provided a variety of auditing, accounting, and tax preparation services to businesses and individuals in the U.S. and abroad (the “Accounting Firm”). HABER worked at the Accounting Firm’s office in New York, New York, and provided tax preparation and advisory services to investment partnerships and other clients of the firm.
The Accounting Firm’s bills to clients ordinarily included payment instructions directing clients to pay the firm by wire transfer or by sending checks to its headquarters in Chicago. However, on multiple occasions from 2004 through July 2012, HABER sent bills to clients containing payment instructions directing them to send checks to him at the Accounting Firm’s New York, New York, office instead of the Chicago headquarters.
Upon receiving those checks, HABER deposited a number of them into a bank account that he had opened in the name of a sham business that was very similar to the name of the Accounting Firm. HABER opened the bank account specifically to receive checks from clients that were intended for the Accounting Firm. After depositing the clients’ checks into that account, HABER then transferred the money from that account to two personal bank accounts which he used to pay various personal expenses, including mortgage payments for his residence in New York, New York.
HABER stole a total of nearly $4 million in client payments.
HABER, 59, is charged with one count of mail fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or gross loss from the offense.
Mr. Bharara praised the outstanding investigative work of the USPIS.
The prosecution of this case is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorney Joseph Facciponti is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Craig Haber Complaint
Man Who Sent Obscene Photo to 14-Year-Old Girls via Facebook and Text Messaging Is Sentenced to 87 Months in Federal PrisonRead the Press Release
DALLAS — Andrew Dale McKee, 36, formerly of Oklahoma City, was sentenced this afternoon by U.S. District Judge Barbara M. G. Lynn to 87 months in federal prison, following his guilty plea in October 2012 to one count of transferring obscene material to a minor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
McKee admitted that in April 2012, he sent a friend request to Jane Doe, a 14-year-old girl, via Facebook. Jane Doe’s Facebook page was public, listing her name, true birth date, middle school and her cell phone number. After Jane Doe accepted his friend request, McKee text messaged her, engaging in sexually explicit messaging and sending her an obscene photograph.
McKee indicated to Jane Doe that he wanted to engage in sexual activity with her and another friend, “Britany,” who McKee also believed was a 14-year-old girl. Via his cell phone, McKee ultimately persuaded “Britany” to meet him in Garland, Texas, to engage in illegal sexual activity with him. McKee also admits that he sent “Britany” the same obscene image he sent to Jane Doe.
On April 26, 2012, McKee used public transportation to meet “Britany” in Garland, at a prearranged time and place, intending to engage in sexual activity with her. Instead, when he arrived, he was arrested by officers with the Garland Police Department.
This matter 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 U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/ For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab "resources."
The case was investigated by the Garland Police Department and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Lisa J. Miller was in charge of the prosecution.
Lower Brule Man Sentenced for Assaulting, Resisting and Impeding A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota man convicted of Assaulting, Resisting and Impeding a Federal Officer was sentenced on February 4, 2013 by U.S. Magistrate Judge Mark A. Moreno. James Ewing, Jr., age 30, was sentenced to 12 months custody and $25 to the Victim Assistance Fund.
Ewing was indicted for the above offense by a federal grand jury on September 19, 2012. The charges stem from an incident on April 3, 2012 at Lower Brule, wherein Ewing assaulted, resisted, opposed, impeded, intimidated and interfered with an officer from the Bureau of Indian Affairs. Ewing pled guilty to an Amended Superseding Information on November 29, 2012.
The investigation was conducted by the Bureau of Indian Affairs and Assistant U.S. Attorney Meghan N. Dilges prosecuted the case. Ewing was immediately turned over to the custody of the U.S. Marshal.
Lower Brule Man Pleads Guilty to AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that Leonard Edwards, age 22, of Lower Brule, South Dakota appeared before U.S. District Judge Roberto A. Lange on February 5, 2013 and pled guilty to Count II of the Indictment that charged him with Assault Resulting in Serious Bodily Injury. The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release and 2 additional years of supervised release upon revocation.
The charge stems from an incident on August 25, 2012 where Edwards, the victim, and others were at a house party in Lower Brule. The victim had brought some alcohol to the party and took one of his bottles of alcohol with him when he left. Edwards followed the victim outside and struck him in the face with a closed fist, knocking the victim unconscious. As a result of the assault, the victim suffered multiple fractures to the jaw that required surgery to repair.
The investigation was conducted by the Federal Bureau of Investigation and Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case. Edwards was remanded to the custody of the U.S. Marshal pending sentencing. A sentencing date has been set for April 29, 2013.
Longmont Man Sentenced to over 6 Years in Federal Prison for Possession of A Firearm by A Previously Convicted FelonRead the Press Release
DENVER – Shawn Stephen Russell, age 30, of Longmont, Colorado, was sentenced late last week by U.S. District Court Judge Philip A. Brimmer to serve 75 months (over 6 years) in federal prison for possession of a firearm by a convicted felon, United States Attorney John Walsh and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Denver Special Agent in Charge Andrew Traver announced. After serving his prison term, Judge Brimmer ordered Russell to serve 3 years on supervised release. Russell appeared at the sentencing hearing in custody, and was immediately remanded at the hearing’s conclusion.
Russell was indicted by a federal grand jury on April 6, 2011. He pled guilty before Judge Brimmer on September 6, 2011. He was sentenced on February 1, 2013.
According to the stipulated facts contained in the plea agreement, at approximately 2:00 p.m. on November 4, 2010, the renter of a home in Longmont, Colorado reported to police that Russell was at her residence, and that there was a warrant out for his arrest. The renter stated that she decided to come forward because earlier that day, Russell had come to her residence, entered her bedroom, laid down and placed a firearm between his legs while he went to sleep. After the police received the report, the Longmont Police Department and the Boulder County SWAT teams were deployed to the renter’s residence. Police lawfully obtained a state search warrant to look for the firearm the renter saw. SWAT officers then surrounded the renter’s residence, and began making announcements for all individuals in the residence to exit.
Soon after the announcement, a man and woman exited the residence. The man stated that he was upstairs in a bedroom with Russell, and that Russell had an old .41 caliber revolver with a six-inch barrel. The man also stated that after he heard the announcement he saw Russell run down the stairs with the revolver, and heard the defendant say he was going into the crawl space. The defendant also said he was not going back to prison and was going to go out with a bang.
Russell proceeded to engage in an approximately 12-hour standoff with police. During the standoff, the SWAT team repeatedly ordered Russell to exit the residence, using loudspeakers to communicate with him. Police also fired a substantial amount of chemical munitions of various types into the residence in an attempt to force Russell to exit. Eventually the SWAT team entered the residence. At approximately 5:13 a.m. on November 5, 2010, Russell was taken into custody by SWAT team members in the attic of the residence.
Thereafter, police began searching the residence for the firearm. At approximately 7:30 a.m. police located a firearm matching the description given by the various witnesses who had exited the residence. The firearm, a Smith & Wesson Model 58, .41 caliber revolver, was in the crawl space. It was loaded with four rounds of .41 caliber ammunition.
Russell, who was a convicted felon who possessed the revolver, had nine separate convictions. The convictions were:
1. Second degree burglary in Larimer County
2. Identity theft in Larimer County
3. Check fraud in Larimer County
4. Aggravated motor vehicle theft in Boulder County
5. Identity theft in Boulder County
6. Identity theft in Boulder County
7. Attempted first degree trespass of an automobile in Boulder County
8. Menacing with a deadly weapon in Boulder County
9. Attempted stalking in Boulder County“Shawn Stephen Russell showed bad judgment 9 different times before this case – and was convicted of 9 different felonies,” said U.S. Attorney John Walsh. “His 10th felony came after an armed standoff. Longmont is a safer place today because this 10 time felon is behind bars.”
“ATF is committed to protecting the citizens of Colorado,” said Special Agent in Charge, Andrew Traver. “We will continue to offer our resources and expertise in making sure violent offenders are taken off our streets and put behind bars.”
“The great but dangerous work performed by our police officers in removing Russell from our community will make this neighborhood and our City safer,” said Longmont Public Safety Chief Mike Butler.
This case was investigated by the Longmont Police Department and ATF with support from the Boulder County SWAT team.
Russell was prosecuted by Assistant U.S. Attorney Ryan Bergsieker.
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Klux Klan Leader Found Guilty on Explosives and Gun ChargesRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced today that in Federal Court Judge Terrence W. Boyle, sentenced CHARLES ROBERT BAREFOOT, JR., 50, of Benson, North Carolina, to 180 months imprisonment followed by 3 years supervised release.
BAREFOOT was convicted by a federal jury on September 25, 2012 of (1) Conspiracy to Possess Stolen Firearms; (2) Possession of Stolen Firearms; (3) Solicitation to Commit a Crime of Violence; (4) Receipt of Explosives With Intent to Kill; (5) Illegal Storage of Explosive Materials; and (6) Distribution of Explosive Materials to an Individual Under the Age of 21. United States District Judge Terrence W. Boyle presided over the trial.
According to evidence presented at trial, BAREFOOT was the leader of the North Carolina chapter of the National Knights of the Ku Klux Klan. In October, 2001, three members of BAREFOOT’S Klan group, including BAREFOOT’S son Daniel, then 17 years old, stole over 30 firearms from an out-building at a residence in Benson. They brought the guns to BAREFOOT’S residence, and BAREFOOT proceeded to dispose of them. He and another member of his Klan group, Marvin Glen Gautier, gave approximately ten of the guns to Michael Brewer, the leader of an affiliated Klan group in Lumberton, North Carolina. Brewer proceeded to sell the guns and share the proceeds with BAREFOOT.
Evidence at trial also revealed that BAREFOOT wanted to kill Johnston County Sheriff Steve Bizzell. BAREFOOT blamed Bizzell for the failure of a nightclub he operated, the Enchanted Barn. BAREFOOT also blamed Bizzell for the Klan group not being able to march in the September, 2001 Mule Days parade in Benson. BAREFOOT began building and experimenting with pipe bombs, and in the fall of 2001 he acquired a binary explosive which he hid in a freezer at his home. Sometime after that, BAREFOOT told Gautier that he had a plan to float down the Neuse River on a boat, get out in Smithfield, plant a bomb at the Sheriff’s Office, and then get back on the boat. BAREFOOT told Gautier that he needed someone to drop him off upriver and then pick him up at a bridge downriver. Gautier did not agree to participate, and there is no evidence that the plot was ever attempted. However, this evidence, along with additional evidence of BAREFOOT’S intent, formed the basis for BAREFOOT’S conviction on the charge of Solicitation to Commit a Crime of Violence.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, and the Johnston and Sampson County Sheriffs’ Offices. Assistant United States Attorney Eric Goulian prosecuted the case.
Kansas City Woman Sentenced for Not Paying Income Taxes on Embezzled FundsRead the Press Release
KANSAS CITY, KAN. – A Kansas City woman has been sentenced for not paying federal income taxes on part of nearly $2 million she embezzled from an employer, U.S. Attorney Barry Grissom said today.
Teresa Joyce Moore, 65, Kansas City, Mo., was sentenced to 33 months in federal prison. She pleaded guilty to one count of filing false income tax returns. In her plea, she admitted the crime occurred while she was working for Big W of Kansas City, Kan., a family run business specializing in manufacturing expandable polystyrene molding, processing and cutting equipment. She was a bookkeeper and officer manager with duties that included invoicing, tracking payroll and general bookkeeping.
In late 2007, the owners of Big W realized that Moore had defrauded the company. She created false invoices from legitimate vendors and prepared checks payable to the vendors. Then she created checks for the same amount payable to herself or her credit card company. When the checks with the forged signature cleared the bank and was returned to Big W., Moore hid them and put the checks payable to the legitimate vendor in Big W’s records.
Moore used embezzled funds to purchase homes, furniture, appliances and other items. On her 2006 federal tax return she reported income of $31,990. In fact, she had received income of more than $451,000 through her embezzlement scheme. On her 2007 federal tax return, she reported an income of $30,881. She did not report more than $507,000 she received from her embezzlement in 2007. Moore embezzled a total of nearly $2 million while working for Big W.
Grissom commended IRS - Criminal Investigation and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Justice Department Settles with Missouri Eating Disorder Clinic over HIV DiscriminationRead the Press Release
The Justice Department announced today that, as part of its Barrier-Free Health Care Initiative, it has reached a settlement with Castlewood Treatment Center LLC, of St. Louis, Mo., under the Americans with Disabilities Act (ADA). The settlement resolves allegations that Castlewood Treatment Center violated the ADA by refusing to treat a woman for a serious eating disorder because she has HIV. This is the second settlement addressing HIV discrimination by a medical provider reached by the Justice Department in two weeks.
The Justice Department found that Castlewood refused to treat Susan Gibson because of her HIV, despite Castlewood’s determination that she was qualified to receive counseling treatment for her eating disorder, and despite advice from its own medical staff that they were able to treat someone with HIV at Castlewood. The department also determined that for months Castlewood staff told Gibson that she was on a waiting list for the program, even though they had no intention to admit her into the program. In the meantime, Gibson’s condition worsened and her health declined. Castlewood’s actions delayed Gibson from receiving appropriate medical treatment for up to seven months. Gibson’s complaint was brought to the Justice Department’s attention by the American Civil Liberties Union, LGBT & AIDS Project.
“Excluding a person from necessary medical treatment solely because of HIV is unconscionable,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “The Civil Rights Division takes HIV discrimination in any form seriously, and will not allow for the marginalization of those living with HIV.”
Under the settlement, the Castlewood Treatment Center must pay $115,000 to Gibson and $25,000 in civil penalties. In addition, Castlewood must train its staff on the ADA and develop and implement an anti-discrimination policy. The department will monitor Castlewood’s compliance for four years.
Last week the department announced a similar agreement with the Fayetteville Pain Center to address HIV discrimination. Both settlements are part of the Department of Justice’s Barrier-Free Health Care Initiative, a partnership of the Civil Rights Division and U.S. Attorney’s offices across the nation, to target enforcement efforts on a critical area for individuals with disabilities. The initiative, launched on the 22nd anniversary of the ADA in July 2012, includes the participation of 40 U.S. Attorney’s offices. The division expects the initiative to address access to health care for people with HIV and those with hearing disabilities, as well as physical access to medical facilities. In 2012, the division and U.S. Attorneys offices reached two settlement agreements regarding access to medical care for people with HIV and four settlements regarding access to medical care for people with hearing disabilities. For more information on the Barrier Free Health Care Initiative visit http://www.ada.gov/usao-agreements.htm.
For more information on the ADA and HIV visit www.ada.gov/aids. Those interested in finding out more about these settlements or the obligations of public accommodations under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed by email to [email protected].
Related Materials:
Castlewood Settlement Agreement
Jury Convicts East Columbus Heroin TraffickerRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – A U.S. District Court jury here today convicted Sontay T. Smotherman, 36, of Columbus of operating a drug house in east Columbus.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Robert Corso, Special Agent in Charge, Drug Enforcement Administration (DEA), Stephanie R. Shoemaker, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Columbus Police Chief Kimberley Jacobs and Franklin County Sheriff Zach Scott announced the verdict returned following a two-day trial before U.S. District Judge Gregory L. Frost.
Testimony presented during the trial included that of a Columbus Police narcotics detective who said they seized approximately $10,000 in cash and more than $10,000 worth of heroin when task force officers executed a search warrant at the house. Testimony presented also showed that over three months in 2011 the conspiracy involved more than $100,000 in heroin distributed in Columbus. Four firearms were seized during the investigation.
Smotherman was one of five Columbus men charged in the case with conspiring to distribute heroin out of Smotherman’s residence at 401 Taylor Avenue. The jury convicted him of possession with intent to distribute heroin and one count of conspiracy. Each crime is punishable by at least five years and up to 40 years in prison.
The others charged have pleaded guilty to conspiracy and firearms charges. Bryan N. Johnson, 27, Arnett C. Smotherman, 35, and Waymon Price, 40, pleaded guilty and are awaiting sentencing. Frederick L. Carter pleaded guilty in September 2012 to conspiracy and a firearms charge. He was sentenced on January 7, 2013 to ten years in prison.
Smotherman was remanded to the custody of the U.S. Marshals Service where he will be held until he is sentenced.
Stewart commended the cooperative investigation conducted by the agencies, as well as Assistant U.S. Attorneys Michael Hunter and Doug Squires, who are representing the United States in the case.
Informational: Federal Court Initial AppearanceRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on February 6, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, the following individual appeared:
MARY AGNES LEIDER, a 24-year-old resident of St. Xavier, made an initial appearance on a complaint alleging second degree murder. She is currently detained. If charged with this offense, LEIDER faces possible penalties of life in prison, a $250,000 fine and 5 years supervised release. Assistant U.S. Attorney Marcia K. Hurd is the prosecutor for the United States. The investigation was a cooperative effort between the Federal Bureau of Investigation, the Bureau of Indian Affairs, and the Big Horn County Sheriff's Office.
A complaint is merely a written statement of the essential facts constituting the offense charged.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on February 5, 2013, before U.S. Magistrate Judge Keith Strong, the following individual was arraigned:
HIRAM EVANS, a resident of Browning, appeared on charges of aggravated sexual abuse and sexual abuse. He is currently detained. If convicted of these charges, EVANS faces possible penalties of life in prison, a $250,000 fine, and lifetime supervision. Assistant U.S. Attorney Ryan G. Weldon is the prosecutor for the United States. The investigation was a cooperative effort between the Federal Bureau of Investigation and the Bureau of Indian Affairs.
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Indictments Returned in Hammond Federal CourtRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ FAX (219) 852-2770
Hammond, Indiana- The United States Attorney’s Office announced that the following Indictments were returned on February 7, 2013:
Monta Oliver, 35, of Gary, Indiana, was charged in an Indictment with distribution of crack cocaine.These charges were filed as the result of an investigation by the Federal Bureau of Investigation and the Gary Police Department.This case has been assigned to and will be prosecuted by Special Assistant United States Attorney Armando Salinas.
Leonardo Torres-Flores, 22, of Valparaiso, Indiana, was charged in an Indictment with being found in the United States without permission after having been previously removed.These charges were filed as the result of an investigation by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.This case has been assigned to and will be prosecuted by Assistant United States Attorney Dean Lanter.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Indictment: Manhattan Accountant Embezzled More Than $500,000Read the Press Release
TOPEKA, KAN. – An accountant in Manhattan, Kan., has been charged with embezzling more than $500,000 from the commercial construction company where he worked, U.S. Attorney Barry Grissom said today.
Larry D. Lord, 63, Manhattan, Kan., is charged with 10 counts of mail fraud. The indictment alleges that from 2005 to 2012 he used his access to the bank accounts of Cheney Construction Incorporated in Manhattan to steal $536,179. Lord was responsible for paying the company’s bills and for issuing payroll checks to company employees. The indictment alleges he wrote checks on the company’s accounts and mailed them to pay personal credit card debts belonging to him and his wife.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count. The FBI, the Pottawatomie County Sheriff's Office and the Internal Revenue Service investigated. Assistant U.S. Attorney Christine Kenney is prosecuting.
OTHER INDICTMENTS
Shawn Lee Smith, 41, Salina, Kan., is charged with one count of possession with intent to distribute methamphetamine within 1,000 feet of Cottonwood Elementary School in Salina, one count of unlawful possession of a firearm in furtherance of drug trafficking, and one count of unlawful possession of a firearm after a felony conviction. The crimes are alleged to have occurred Dec. 3, 2012, in Saline County, Kan.
If convicted, he faces a penalty of not less than one year and not more than 40 years and a fine up to $2 million on the drug charge; a penalty of not less than five years and not more than life and a fine up to $250,000 on the charge of unlawful possession of a firearm in furtherance of drug trafficking; and a maximum penalty of 10 years and a fine up to $250,000 on the charge of unlawful possession of a firearm after a felony conviction.
The Salina Drug Task Force investigated. Assistant U.S. Attorney Randy Hendershot is prosecuting.
Robert Benjamin Isaac Ewing, 27, Topeka, Kan., is charged with unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred Sept. 24, 2012, in Shawnee County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Randy Hendershot is prosecuting.
Camona Javaughn Crowder, 28, Topeka, Kan., is charged with one count of unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred Sept. 30, 2011, in Shawnee County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Randy Hendershot is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Houston, Texas Resident Charged in Five State Conspiracy to Defraud Home DepotRead the Press Release
– Switched UPC Labels On Purchases Then Sold Merchandise At A Profit On Ebay
LOUISVILLE, Ky. – A Houston, Texas resident has been charged with mail fraud by a federal grand jury meeting in Louisville, Kentucky this week, for his role in a five state conspiracy to defraud Home Depot announced David J. Hale, United States Attorney for the Western District of Kentucky.
Larry Lyndsey and other unnamed co-conspirators devised a scheme, between January 2006 through December 2012, to defraud Home Depot by allegedly switching UPC labels on similar items to reflect a lower purchase price, then selling the products on Ebay, to purchasers across the United States, and, according to the indictment, received approximately $645,000 from the fraudulently purchased items sold over the internet.
Specifically, according to the one-count federal indictment, Lyndsey and other unnamed co-conspirators would purchase items form Home Depot stores in Kentucky, Tennessee, Texas, Alabama, Georgia, and Louisiana. In particular, on May 9, 2009, Lyndsey is alleged to have sold, on Ebay for $525., a Lincoln Electric Weld Pak 180HD and caused it to be shipped to Shepherdsville, Kentucky, and on October 3, 2010, sold a Petsafe Wireless Dog Containment System, PIF-300, and caused it to be shipped to Paducah, Kentucky. It was further part of the conspiracy that following the sale of the fraudulently purchased items, Lyndsey and other unnamed co-conspirators would divide the profits from the fraudulent purchases and sales.
At sentencing, Lyndsey faces not more than 20 years in prison, a fine of $250,000 and a period of supervised release for three years. A first appearance/arraignment on the charge has not been scheduled by the court.
This case is being prosecuted by Assistant United States Attorney Bryan R. Calhoun and is being investigated by the United States Secret Service.
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Heroin and Firearms Charges Filed Against Akron ManRead the Press Release
A federal grand jury returned an indictment charging Ernest Gaines, of Akron, with four counts related to the distribution of heroin and illegally having a firearm, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Gaines, 45, was charged with with one count of possession with intent to distribute 100 grams or more of heroin, one count of using and maintaining a premises for the purpose of manufacturing and distributing heroin, one count of being a felon in possession of firearms and ammunition, and one count of conspiracy to distribute and to possess with the intent to distribute heroin.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation was conducted under the U.S. Attorney’s Organized Crime Drug Enforcement Task Force, which is part of a national program that seeks to identify, investigate and prosecute significant drug trafficking enterprises by utilizing multiple investigative and prosecuted resources.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration, the Akron Police Department Street Narcotics Uniformed Detail, and the Summit County High Intensity Drug Trafficking Area initiative. The case is being prosecuted by Assistant United States Attorney Samuel A. Yannucci.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Hermosa Man Pleads Guilty to EscapeRead the Press Release
United States Attorney Brendan V. Johnson announced that Barry Allman, age 22, of Hermosa, South Dakota appeared before U.S. District Judge Roberto A. Lange on February 5, 2013 and pled guilty to Escape. The maximum penalty upon conviction is 5 years in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 special assessment.
The conviction stems from an incident that took place on November 26, 2012 when Allman was released on a furlough from federal custody to attend a funeral. Allman failed to return as ordered and was on the run until he was apprehended on December 18, 2012.
The investigation was conducted by the U.S. Marshal Service. The case is being prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
A presentence investigation was ordered and a sentencing date was set for April 1, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Herkimer County Man Sentenced for Operating A Massive Marijuana Grow OperationRead the Press Release
SYRACUSE, NY – Richard S. Hartunian, United States Attorney for the Northern District of New York, announces that COREY LEITZ, age 42, of Frankfort, New York, was sentenced today in U.S. District Court in Syracuse to 151 months, followed by 5 years supervised release and a $100 special assessment. Leitz had previously pled guilty to a onecount information charging him with knowingly manufacturing over one thousand (1000) marijuana plants.
As part of the plea LEITZ admitted the following:
From August 2011 until December 14, 2011, LEITZ did knowingly manufacture marijuana plants at 162 McIntyre Road, Frankfort, New York. LEITZ set up and maintained a marijuana manufacturing operation inside a barn at this location. By December 14, 2011, LEITZ had successfully grown 3200 marijuana plants. LEITZ then sold the marijuana he manufactured to numerous customers in Herkimer County and elsewhere.
This marks the second felony drug conviction for Leitz who has a prior felony drug conviction in 1998 in Herkimer County.
This prosecution resulted from a joint investigation undertaken by the Drug Enforcement Administration, the New York State Police, and the New York National Guard Counterdrug Task Force. The case is being prosecuted by Assistant U.S. Attorney Geoffrey Brown. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315) 448-0672.
Harrison County Man Sentenced for Bank FraudRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 45-year-old Marshall, Texas, man has been sentenced to federal prison for bank fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Mark Alan McCullars pleaded guilty on Nov. 6, 2012 to conspiracy to commit bank fraud and was sentenced to 51 months in federal prison today by U.S. District Judge Michael H. Schneider.
According to information presented in court, beginning in May 2011, McCullars and co-defendant, Amanda Henderson, created counterfeit checks which appeared to be payroll checks from businesses in East Texas. They also created fraudulent drivers’ licenses so that they could cash the counterfeit checks at check-cashing businesses. McCullars and Henderson cashed over 100 fraudulent checks resulting in over $55,000 in loss to check cashing businesses in East Texas. They were indicted by a federal grand jury on May 11, 2012. Henderson is awaiting sentencing.
This case was investigated by the United States Secret Service and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.
####Gregg County Man Guilty of Methamphetamine ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 26-year-old Longview, Texas man has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jason Ray Ragan pleaded guilty to possession with intent to distribute methamphetamine today before U.S. Magistrate Judge John D. Love.
According to information presented in court, on Aug. 2, 2012, Ragan was found in possession of approximately 8 grams of methamphetamine. A federal indictment was returned on Sep. 12, 2012 charging Ragan and a co-defendant with federal drug crimes.
Ragan faces up to 40 years in federal prison at sentencing. A sentencing date has not been set.
This case is being investigated by the Drug Enforcement Administration and the Texas Department of Public Safety prosecuted by Assistant U.S. Attorney Mary Ann Cozby.
####Fridley Man Indicted in Connection with the Armed Robbery of Two Twin Cities-area Shoe StoresRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a 41-year-old Fridley man was indicted in connection with the armed robbery of two Twin Cities-area shoe stores in early January. Peter Christopher Nunn was charged with two counts of interference with commerce by robbery, pursuant to the Hobbs Act.
The indictment alleges that on January 5, 2013, Nunn stole approximately $300 from the Payless ShoeSource store, located at 8510 Springbrook Drive in Coon Rapids while threatening employees with a weapon, later determined to be a BB gun. It also alleges that on January 7, 2013, Nunn stole approximately $700 from the Famous Footwear store located at 1593 E. 17th Avenue in Shakopee in the same manner.
As stated, Nunn was charged in federal court under the Hobbs Act, which was passed by Congress in1946. The Act allows federal prosecutors to prosecute violent habitual criminals who commit armed robberies in places of business that involve interstate commerce. Federal prosecution of these cases is sometimes beneficial since federal penalties are often tougher than those imposed under state law. Moreover, because the federal system has no parole, those who receive federal sentences serve virtually their entire prison terms behind bars.If convicted, Nunn faces a potential maximum penalty of 20 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 police departments of Coon Rapids and Shakopee, and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.
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.Fourteen Individuals Indicted in Marijuana Distribution ConspiracyRead the Press Release
Tampa, FL - United States Attorney Robert E. O'Neill announces today the unsealing of a federal indictment charging 14 individuals with conspiring to distribute 1,000 kilograms or more of marijuana. Law enforcement teams in Florida, Texas, Arkansas, and Mississippi made the arrests earlier today in this joint law enforcement investigation, dubbed Operation Wooly Swamp. If convicted, each individual faces a maximum penalty of 10 years, up to life in federal prison.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, Drug Enforcement Administration (High Intensity Drug Trafficking Area Task Force 2), U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), Hillsborough County Sheriff's Office, and the Clearwater Police Department. It will be prosecuted by Assistant United States Attorney James C. Preston, Jr.
OPERATION WOOLY SWAMP Name Age Residence 26 Wimauma, FloridaArmando Martinez-Hernandez
45 Weslaco, Texas Luis Alberto Garcia,
a/k/a Choco, a/k/a Mando, a/k/a Juan
a/k/a Louie, a/k/a Chuey 32 Weslaco, Texas Herman Martinez 23 Wimauma, Florida Ismael Martinez, a/k/a Jose 24 Wimauma, Florida Charles Daniel Law 52 Riverview, Florida Anthony Edward Peters, a/k/a Tony
36 Clearwater, Florida Joseph Fairweather, a/k/a Joey 28 Holiday, Florida Christopher Hart, a/k/a Chris 39 New Port Richey, Florida Paul Jason Pless 37 Gibsonton, Florida Charles Francis Martin, III, a/k/a Chuck 42 Riverview, Florida Cynthia Ford Rico, a/k/a Cindy 56 West Memphis, Arkansas Pamela Ford Walker 54 Oxford, Mississippi David Ray Hobbs 63 Memphis, TennesseeFour Charged with Internet Sales of Industrial Bleach as Miracle CureRead the Press Release
Louis Daniel Smith, 42, and Karis Delong, 38, both of Ashland, Ore., were charged with defrauding regulators and suppliers in a scheme to manufacture and sell industrial bleach as a cure for numerous illnesses, including arthritis, cancer, and the seasonal flu. Also charged were Chris Olson, 49, and Tammy Olson, 50, of Nine Mile Falls, Wash. A federal grand jury returned an indictment, unsealed yesterday, charging Smith, Delong and Tammy Olson with one count of conspiracy, four counts of interstate sales of misbranded drugs, and one count of smuggling. The grand jury charged Chris Olson with one count of conspiracy, one count of the interstate sale of a misbranded drug and one count of smuggling.
The indictment alleges that Smith and Delong operated a business called “Project GreenLife” (PGL) from 2004 to 2011. PGL provided various health products for sale over the internet. According to the indictment, Smith and Delong arranged the manufacture and sale of the “Miracle Mineral Supplement” (MMS), a mixture of Sodium Chlorite and water. Sodium chlorite is not meant for human consumption. Suppliers of the chemical include a warning sheet with the chemical that states that it is harmful if swallowed.
According to the indictment, PGL provided consumers directions to combine MMS with citric acid to create Chlorine Dioxide, and the instructions told consumers to drink this mixture to cure numerous illnesses. Chlorine Dioxide is a potent agent used to bleach textiles, among other industrial applications. In humans, Chlorine Dioxide is a severe respiratory and eye irritant that can cause nausea, diarrhea and dehydration.
As part of the scheme to manufacture MMS, the indictment alleges that Smith, Delong, and others smuggled sodium chlorite into the United States from Canada using fraudulent invoices to hide the true end use of the product. In these invoices, according to the indictment, they falsely claimed that the ingredients they were purchasing for MMS were to be used in wastewater treatment facilities.
According to the charging documents, Smith and Delong were the managing members of PGL Smith co-founded the company, and Delong frequently handled financial transactions for the company and recruited friends and family to participate in the business. The indictment alleges that Smith and Delong paid Tammy Olson to handle all customer inquiries regarding the product. It is alleged that Tammy Olson continued selling MMS on her own website after federal agents shut down the Project GreenLife website and production facilities.
The indictment also alleges that Smith and Delong paid Chris Olson to clandestinely manufacture MMS in a building on his property after regulators from the Food and Drug Administration (FDA) inspected PGL’s original manufacture and shipping locations.
“The Department of Justice is committed to protecting the health and safety of people with cancer and other serious medical conditions,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Justice Department’s Civil Division. “Our most vulnerable citizens need real medicine – not dangerous chemicals peddled by modern-day snake oil salesmen.”
Charges contained in the indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty it is to determine guilt or innocence.
The case was investigated by agents of the FDA’s Office of Criminal Investigations and the U.S. Postal Inspection Service. The case is being prosecuted by Christopher E. Parisi, a Trial Attorney at the Department of Justice’s Consumer Protection Branch in Washington, D.C.
Founders of Mcginn, Smith & Co., Inc. Convicted of Conspiracy, Mail Fraud, Wire Fraud, Securities Fraud, and Filing False Tax ReturnsRead the Press Release
Albany, New York — A federal jury in Utica returned its verdict following the four-week trial of Timothy M. McGinn and David L. Smith, former owners of the Albany broker-dealer McGinn, Smith & Co., Inc., announced United States Attorney Richard S. Hartunian, Toni M. Weirauch, Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation, New York Field Office, and Andrew W. Vale, Special Agent-in-Charge, Federal Bureau of Investigation, Albany Division. After 4 days of deliberation, the jury convicted McGinn of 27 of 29 counts and Smith of 15 of 29 counts. Both defendants were convicted of conspiracy to commit mail and wire fraud, mail fraud, wire fraud, securities fraud, and filing false tax returns.
U.S. Attorney Hartunian commented, “With today's guilty verdicts against Timothy McGinn and David Smith, a measure of justice has been achieved for the many investors who placed their trust - and in some cases, their life savings - in these two men and their brokerage firm. While the harm they have caused may never be fully undone, this verdict sends the strong message that fraudulent business practices and tax cheating will not be tolerated. Law enforcement will do everything possible to bring to justice those whose greed and self- interest make them lose sight of their responsibilities to investors and regulators.”
U.S. Attorney Hartunian also thanked the many agents, investigators, and analysts from the Internal Revenue Service and the Federal Bureau of Investigation for their tireless efforts and dedication to seeing that justice was served. He also congratulated the trial team from the United States Attorney's Office, including Deputy Criminal Chief Elizabeth C. Coombe, Assistant United States Attorneys Richard D. Belliss and Wayne Myers, and Information Technology Specialist Ron Kittelson, all of whom spent long hours preparing and presenting this complex case.
Special Agent-in-Charge Weirauch stated, "The guilty verdicts against Timothy M. McGinn and David L. Smith are a victory for the people of the Capital Region of New York and beyond. People must be able to trust those who invest money on their behalf. They must also trust that all Americans are paying their fair share of taxes. When that trust is violated, people suffer, and our economy as a whole suffers. IRS Criminal Investigation, along with our law enforcement partners, remains committed to ensuring that people who violate the law are held accountable for their actions."
Special Agent-in-Charge Vale stated, "The actions of Timothy M. McGinn and David L. Smith destroyed dreams and ruined lives, and although today's verdict will not erase the financial and emotional harm they caused, we hope their victims will find solace in knowing that they will now face consequences for their damaging actions. Today's verdict supports the commitment of the FBI and our law enforcement partners to bring to justice those individuals who engage in such fraudulent schemes."
According to the superseding indictment, the purpose of the conspiracy was to mislead investors and the Financial Industry Regulatory Authority, Inc. (“FINRA”) regarding the safekeeping and use of investor money raised by 17 trusts, one corporation, and other entities; the risks of the trust offerings; the performance of the underlying income streams; the source of investor payments; and the improper diversion of investor money in order to obtain money from investors and enrich themselves. As a result of the defendant’s conduct, the investors were not aware that the defendants had diverted approximately $4.1 million in connection with transactions related to the trusts for their own benefit and the benefit of another person.
The superseding indictment also alleged that, as part of the conspiracy, the defendants improperly diverted nearly $1 million; directed false accounting entries regarding those transactions in response to a document request from the broker-dealer’s regulator, FINRA; and caused the false accounting entries to be submitted to FINRA. The alleged improper diversions fell into two categories: (a) the improper diversion of more than $473,000 of investor money from an escrow account to pay preferred clients who had unrelated investments (between May 15, 2008 and July 8, 2009); and (b) the improper diversion of $525,000 from bank accounts for three unrelated investments to pay the broker-dealer’s employees (between November 14, 2008 and April 15, 2009). The superseding indictment also alleged that the defendants improperly used a corporation to conceal and disguise the true nature of the payroll diversions by passing the money from the three unrelated investments through that corporation and then to the broker-dealer. Finally, the superseding indictment alleged that the defendants misled FINRA about the preferred client diversions and the payroll diversions by (a) directing the creation of false accounting entries to conceal the true nature of these transactions in response to a document request from FINRA; and (b) causing the submission of these false accounting entries to FINRA. The maximum potential penalties for count 1 include imprisonment for 30 years, to be followed by supervised release for 5 years, and a fine of the greater of $1,000,000 or twice the gross pecuniary gain or loss.
Both McGinn and Smith were convicted on Counts 21 through 26 (securities fraud), which relate to the failure to disclose improperly diverted fees to investors in violation of federal securities laws. Counts 21 and 22 relate to $100,000 in fees paid in connection with TDM Verifier Trust 08, and Counts 23 through 26 relate to approximately $855,000 in fees paid in connection with Fortress Trust 08. All of these transaction fees were paid with investor money. The maximum potential penalty for each of Counts 21 through 26 is imprisonment for 20 years, supervised release for 3 years, and a fine of $5,000,000.
McGinn and Smith were also both convicted on the tax charges arising from their failure to declare the improperly diverted money on their personal tax returns for tax years 2006 through 2008 (Counts 27-29 for McGinn and Counts 30-32 for Smith). McGinn and Smith later described the money as “loans,” but did not list them as such on personal financial statements. When FINRA discovered the false loan accounting entries for the diverted money, the defendants misled FINRA by directing the creation of backdated promissory notes. The maximum potential penalty for each of Counts 27 through 32 is imprisonment for 3 years, supervised release for 1 year, and a fine of $100,000.
Both McGinn and Smith were convicted on Count 10, and McGinn was convicted of Counts 4 through 6 and 11 through 13.1 Those mail and wire fraud counts relate to the Firstline Series B Trusts, which raised money from investors in connection with a loan of $2.4 million to Firstline Security, Inc., a company that generated alarm contracts. The superseding indictment alleged that the defendants did not tell investors when Firstline filed for bankruptcy and defaulted on loans. In addition, their firm sold approximately $600,000 of one of the Firstline investments without any disclosure of the bankruptcy or defaults. McGinn directed that investors receive $2 million of lulling payments by transferring money from other entities controlled by McGinn and Smith.
McGinn and Smith were both convicted on Count 14, and McGinn was convicted on Count 7. Those mail and wire fraud counts relate to the Integrated Excellence Trusts, for which the defendants raised about $1.2 million from investors in connection with a loan to benefit Integrated Excellence, Inc., which generated alarm contracts. The superseding indictment alleged that the defendants knew that the payments received from the loan were not sufficient to pay investors, but McGinn directed that investors receive lulling payments by transferring money from other entities controlled by McGinn and Smith.
McGinn and Smith were both convicted of Counts 8 and 9. Those mail fraud counts related to the improper diversion of investor money from an escrow account to pay preferred clients who had unrelated investments.
McGinn was also convicted on Counts 15 and 16. Those counts involved the diversion of approximately $142,000 of investor money from an escrow account to make payments to investors in other trusts.
Both McGinn and Smith were convicted on Count 17, which involved $35,000 Smith took directly from an escrow account holding investor funds for Integrated Excellence Sr. Trust 08. McGinn was convicted on Counts 18, 19, 20 which involved approximately $310,000 that McGinn took directly from escrow accounts holding investor funds.
This case was investigated by the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorneys Elizabeth C. Coombe, Richard D. Belliss, and Wayne Myers.
The sentencings are set for June 28, 2013 at 10:00 am for McGinn and 11:00 am for Smith.
LOCAL CONTACT:
Elizabeth C. Coombe
Assistant U.S. Attorney
Tel: (518) 431-0247____________________________
1The maximum potential penalty for each of Counts 4 through 20 is imprisonment for 30 years, supervised release for 5 years, and a fine of the greater of $1,000,000 or twice the gross pecuniary gain or loss.
Former Owner of Bolton Flooring Business Pleads Guilty to Federal Tax ChargeRead the Press Release
February 6, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that ALAN MISKUNAS, 51, of Hebron, waived his right to indictment and pleaded guilty today before United States District Judge Michael P. Shea in Hartford to one count of filing a false tax return. MISKUNAS formerly owned Bolton Flooring Center in Bolton.
According to court documents and statements made in court, during the 2003 and 2004 tax years, MISKUNAS filed income tax returns with the Internal Revenue Service that under-reported Bolton Flooring Center’s gross business receipts by approximately one-half, resulting in his failure to pay more than $64,000 in personal income taxes due on that unreported income. MISKUNAS also did not file tax returns for the 2005 and 2006 tax years and failed to pay more than $88,000 in taxes owed for those years.
Judge Shea has scheduled sentencing for May 2, 2013, at which time MISKUNAS faces a maximum term of imprisonment of three years and a fine of up to $250,000. MISKUNAS also must make restitution to the IRS totaling more than $152,000, plus applicable interest and penalties.
This matter was investigated by the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Henry K. Kopel.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Mortgage Broker and Bank Officer Charged with Conspiring to Commit Bank FraudRead the Press Release
NEWARK, N.J. – A former mortgage broker and bank officer from Bergen County, N.J., was arrested this morning for allegedly conspiring to commit bank fraud to secure a $1.5 million residential loan, U.S. Attorney Paul J. Fishman announced.
James Cockinos, 58, a resident of Englewood Cliffs, is charged by Complaint with one count of conspiracy to commit bank fraud. The defendant allegedly defrauded Washington Mutual Bank (later acquired by JPMorgan Chase) in New York, to secure the loan. He is expected to make his initial court appearance before U.S. Magistrate Judge Madeline Cox Arleo in Newark federal court this afternoon.
According to the criminal Complaint:
Cockinos was the owner and president of Federated Mortgage Company of America (FMCA) as well as on the Board of Directors at Mariner’s Bank. Through FMCA, Cockinos served as the mortgage broker on a $1.5 million residential loan with Washington Mutual Bank in an application dated April 19, 2007. The borrower, identified as “Individual Two” in the Complaint, applied for the loan at the request of a spouse, identified as “Individual One” in the Complaint. There was no co-borrower on the loan.
The loan application indicated it was for the purchase of a $1.9 million home located in Englewood Cliffs, N.J. Cockinos fraudulently indicated in the application that he had obtained the information through a face-to-face interview with Individual Two, when no such interview took place. The application, in fact, falsely represented the employment, income and assets of the applicant.
The application indicated that there was $400,000 in a joint account held by Individuals One and Two at Mariner’s Bank in New Jersey. Cockinos and Individual One had temporarily deposited $350,000 into the joint account for the purpose of misrepresenting Individual Two’s assets. Cockinos also directed a Mariner’s Bank employee to falsely verify that the account held $350,000 during the prior two months, when there was significantly less in the account during that time.
Washington Mutual ultimately approved a loan of $1.5 million. On Sept. 25, 2008, JPMorgan Chase acquired the banking operations of Washington Mutual Bank. In 2010, Individual Two defaulted on the loan and the home went into foreclosure. It was sold March 16, 2012, leaving JPMorgan Chase with a loss of more than $500,000.
The bank fraud conspiracy charge carries a maximum potential penalty of 30 years in prison and a fine of $1 million.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent In Charge David Velazquez in Newark, and criminal investigators from the U.S. Attorney’s Office in Newark, with the investigation leading to the charges and today’s arrest.
The government is represented by Assistant U.S. Attorney Zahid N. Quraishi of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
The charge and allegations in the Complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
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Defense counsel: Edward J. Plaza Esq., Red Bank, N.J.Cockinos Complaint
Former International Longshoreman’s Union Official Admits Stealing Union FundsRead the Press Release
TRENTON, N.J. – The former secretary-treasurer of a Newark union today admitted embezzling $71,000 from Local 1233 of the International Longshoreman’s Association, U.S. Attorney Paul J. Fishman announced.
Gregory Taylor, 57, of Edison, N.J., pleaded guilty to Count 26 of an Indictment that charged him with issuing a vacation check for $7,852 to himself without authorization. Taylor also admitted to embezzling an additional $63,148 in union funds while he was in control of the union’s finances. Taylor entered his guilty plea before U.S. District Judge Joel A. Pisano in Trenton federal court.
According to documents in this case and statements made in court:
Taylor admitted he had been removed from his elected position as secretary-treasurer in April 2010, yet continued to write himself checks, including a $7,852 vacation check to which he was not entitled. Taylor admitted that between 2007 and 2010, while secretary-treasurer, he embezzled a total of $71,000 by improperly cashing duplicate paychecks, as well as other checks from the union’s operating account, including for unauthorized credit card expenditures.
The charge to which Taylor pleaded carries a maximum potential penalty of five years in prison and a $250,000 fine. Taylor is scheduled to be sentenced on May 6, 2013.U.S. Attorney Fishman credited special agents of the Department of Labor-Office of Inspector General, under the direction of Special Agent in Charge Robert Panella and detectives and auditors from the Waterfront Commission, under the supervision of Assistant Counsel Michelle Demeri, with the investigation leading to today’s guilty plea.
The government is represented by V. Grady O’Malley, Senior Litigation Counsel of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
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Defense counsel: Lorraine Gauli-Rufo Esq., Federal Public Defender’s Office, Trenton
Taylor Indictment
Former Chief of St. Clair Fire Protection District and Ladue Fire Department Pleads Guilty to Federal Fraud and Tax ChargesRead the Press Release
St. Louis, MO - Eric Hinson pled guilty to mail fraud and multiple tax evasion charges involving his misuse of approximately $593,236 of St. Clair Fire Protection District funds between January 2006 and September 2011. As a result of the federal investigation, Hinson resigned his positions as Chief at both the St. Clair Fire Protection District and the Ladue Fire Department.
The St. Clair Fire Protection District (District) provides fire protection service for Franklin County, Missouri, and has four fire houses, 18 full-time fire fighters and between 25-50 volunteer fire fighters. The District is primarily funded by public funds, through real estate tax, personal property tax and sales tax. Eric Hinson began with the District as a volunteer firefighter during 1985, was elected to the Board of Directors for the District in 1997 and as Treasurer of the District in 1999. During January, 2011, he became the Fire Chief for the District while continuing to perform his duties as Treasurer until his resignation from the District on September 28, 2011. As Treasurer, Hinson was responsible for preparing the annual budgets, facilitating the annual financial statement audit, gaining approval from the District's Board of Directors for expenditures, reconciling bank statements and performing other accounting related activities, in the QuickBooks general ledger system, other than for payroll. He also had the ability to access the QuickBooks system remotely from outside the District offices.
According to court documents, Hinson used the District credit cards to pay for family vacations to Hawaii and Florida, to pay for personal items such as sporting goods and other items, limousine rentals, tickets to Six Flags, Big Surf Water Park and other entertainment expenses, restaurant meals, gasoline and hotel rooms, as well as to obtain significant cash advances. Without the knowledge and authority of the District, Hinson directed that these personal credit card charges be paid with District funds. Further, on several occasions, Hinson wrote District checks to pay for his own personal expenses, including checks to Ford Credit for a pickup truck, to Macy's for furniture, to John Deere Credit for tractor parts and checks to Bank of America and Fifth Third Bank for other personal expenses. In order to conceal his scheme, Hinson accessed the District's QuickBooks to alter reported general ledger activity by backdating certain of his fraudulent transactions and by changing the payee in order to manipulate the District's accounting records so as to hide the existence of his fraudulent transactions. Through his fraudulent conduct, Hinson obtained approximately $593,236 from the St. Clair Fire Protection District.
Additionally, Hinson filed false tax returns for the years 2006 through 2010, leaving total additional taxes due of $132,383.ERIC HINSON, St. Clair, MO, pled guilty to one felony count of mail fraud and five felony counts of tax evasion, before United States District Judge E. Richard Webber. Sentencing has been set for May 2, 2013.
Mail fraud carries a maximum penalty of 20 years and a fine of up to $250,000; each count of tax evasion carries a maximum penalty of 5 years and a fine of up to $100,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the St. Clair Police Department, Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney's Office.Former Attorney Sentenced for $900,000 Mail Fraud Against Clients and Trust BeneficiariesRead the Press Release
Ken Hoesch also sentenced for federal tax offense.GRAND RAPIDS, MICHIGAN – Kenneth Hoesch, age 59, formerly an attorney in Zeeland, Michigan, was sentenced to 78 months imprisonment and 3 years of supervised release for his embezzlement from trusts and trust accounts he controlled as an attorney on behalf of clients as well as his failure to report this ill-gotten income on his taxes, U.S. Attorney Patrick Miles announced today. In addition, United States District Judge Robert Jonker also ordered Hoesch to pay a special assessment of $200.00. Additionally, he was ordered to pay restitution to his victims in the amount of $1,295,518.19 and restitution to the Internal Revenue Service in the amount of $211,654.00.
“Kenneth Hoesch was an attorney who stole from his clients and preyed on seniors. His prosecution and sentence show justice will be served on those who do so whether that person uses a gun and a mask or a pen and a legal pad. Both harm society.” Miles stated.
U.S. Attorney Patrick Miles was joined in the announcement by Special Agent in Charge Erick Martinez, Internal Revenue Service (IRS) Criminal Investigation Division. “Kenneth Hoesch’s sentence today is evidence that no one is above the law. Hoesch violated the trust of vulnerable victims and now he will pay the price for that crime,” said Special Agent in Charge Erick Martinez.
In July of 2012, Hoesch pled guilty to one count of mail fraud and one count of filing a false tax return. According to court records, during 2006 through 2010 tax years, Hoesch worked as an attorney specializing in trusts and estate law. During this time period, Hoesch stole over $800,000 from his clients and trust beneficiaries and purposely falsified his federal income tax return when reporting his income. Of the $800,000 Hoesch stole, over $300,000 was embezzled directly from trust accounts intended for beneficiaries such as the American Cancer Society. His victim clients include the elderly and even the deceased. The remaining amount of over $600,000 was stolen through an Interest on Lawyers Trust Account (IOLTA) controlled by Hoesch. IOLTAs are a standard type of account where, for example, monies to be directed to clients or beneficiaries are held pending disbursement. Because he did not report to the IRS the income that he stole from his clients and beneficiaries, Hoesch knew his tax return was not correct. In sum, Hoesch failed to pay over $200,000 in tax due and owing to the IRS. Hoesch’s former law partners had no knowledge or involvement in the criminal activity.
This case was jointly investigated by the Ottawa County Sheriff’s Department, the U.S. Secret Service, the U.S. Postal Inspection Service and the Criminal Investigation Division of the IRS. Assistant U.S. Attorney Michael MacDonald prosecuted the case. U.S. Attorney Miles praised the cooperation among local and federal law enforcement agencies by stating, “By working together we served justice and prevented further harm.”.
END
Florida Man Sentenced in False Identification Documents CaseRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Daniel Jimenez, 25, of Fort Meyers, Florida, was sentenced to time served (eight months) by Chief U.S. District Court Judge William M. Skretny for assisting his father, German Jimenez, with providing false identification documents to illegal aliens.
Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated that German Jimenez sold fake green cards (permanent resident cards), social security cards and driver's licenses to illegal immigrants. Daniel Jimenez assisted his father with mailing out those documents.
The sentencing is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero, Special Agent In Charge.
Sentencing for German Jimenez is scheduled for February 15, 2013, at 9:00 a.m. before Judge Skretny.
Five Individuals and Five Corporations Charged in New York for Importing and Selling Hazardous and Counterfeit ToysRead the Press Release
Five individuals and five corporations have been charged in an indictment unsealed today in Brooklyn, N.Y., for allegedly importing hazardous and counterfeit toys from China for sale in the United States, announced Assistant Attorney General Lanny Breuer of the Justice Department’s Criminal Division; U.S. Attorney for the Eastern District of New York Loretta E. Lynch; Special Agent in Charge of Homeland Security Investigations (HSI) in New York James T. Hayes Jr.; Robert E. Perez, New York Field Operations Director of Customs and Border Protection (CBP); Chairman Inez Tenenbaum of the Consumer Product Safety Commission (CPSC); and Commissioner Raymond W. Kelly of the New York City Police Department (NYPD).
The 24-count indictment charges Chenglan Hu, 51, Hua Fei Zhang, 52, and Xiu Lan Zhang, 60, all Chinese nationals and residents of Queens, N.Y., and Guan Jun Zhang, 29, and Jun Wu Zhang, 28, both naturalized citizens and Queens residents, along with their closely held companies Family Product USA Inc., H.M. Import USA Corp., ZCY Trading Corp., Zone Import Corp. and ZY Wholesale Inc., with importing and trafficking hazardous toys in violation of the Consumer Product Safety Act (CPSA) and toys bearing copyright-infringing images and counterfeit trademarks, smuggling, money laundering and structuring.
“The defendants are accused of importing and selling toys that posed significant health hazards to children or were the product of blatant intellectual property theft,” said Assistant Attorney General Breuer. “They allegedly retooled their operations many times in order to avoid detection, and despite repeated citations by the authorities, they continued to peddle counterfeit toys featuring Dora the Explorer, SpongeBob SquarePants and other popular children’s characters. Today’s actions reflect a Justice Department focused on ensuring that consumers receive safe and legitimate goods.”
“For years, the defendants sought to enrich themselves by importing and selling dangerous and counterfeit children’s toys without regard for the law or the health of our children,” said U.S. Attorney Lynch. “Profits from the counterfeit items, as well as toys riddled with lead and choking hazards, went to provide the defendants with luxury cars. We stand committed to protecting the residents of our communities from those who would engage in such conduct.”
The five individual defendants were arrested this morning, and a federal task force comprising HSI agents, other federal agents and NYPD officers, aided by CBP officers and CPSC investigators, executed four search warrants and nine seizure warrants. The agents, officers and investigators searched the defendants’ warehouse, two residences and an email account. In addition, three luxury vehicles, including a Porsche and Lexus, three personal bank accounts and three corporate accounts were seized. The agents also filed lis pendens on two of the defendants’ properties in Queens, N.Y. The defendants’ initial appearances are scheduled this afternoon before U.S. Magistrate Judge Ramon E. Reyes Jr. in the Eastern District of New York.
The indictment charges that from July 2005 through January 2013 the individual defendants used their companies, the corporate defendants, to import toys from China that they sold, both wholesale and retail, from a storefront and warehouse in Ridgewood, N.Y., and other locations in Brooklyn and Queens.According to the indictment, the defendants’ companies had children’s toys seized by CBP from shipping containers entering the United States from China on 33 separate occasions. Seventeen of the 33 seizures were of violative toys – toys prohibited from import into and distribution in the United States, under laws and regulations enforced by the CPSC, because of excessive lead content, excessive phthalate levels, small parts that presented choking, aspiration or ingestion hazards, and easily accessible battery compartments. Sixteen of the 33 seizures were of toys bearing copyright-infringing images and counterfeit trademarks, including knockoff versions of toys featuring a wide variety of popular children’s characters, such as Winnie the Pooh, Dora the Explorer, SpongeBob SquarePants, Betty Boop, Teenage Mutant Ninja Turtles, Power Rangers, Spiderman, Tweety, Mickey Mouse, Pokémon, as well as those from movies, such as the “Cars,” “Toy Story” and “High School Musical.”
The indictment charges that following each of the 33 seizures, the violator toy company was served written notice by CBP detailing the reason for the seizure, and a representative of the company signed a release form acknowledging the seizure and abandoning the seized goods. Additionally, the violator company and its principal were served written notice by CPSC of the specific safety violations of the toys, and each time a representative of the company signed a release form acknowledging the seizure and abandoning the seized goods.
Due to the number and volume of the seizures, the individual defendants allegedly shifted their use of the companies and alternated formal roles, in order to continue importing and distributing violative and infringing toys. Each time the number of seizures accumulated for one company, the individual defendants allegedly formed a new toy company to continue importing the violative and infringing toys.
“The people and companies involved in this illegal trade not only allegedly infringed on intellectual property rights, they placed the lives of innocent children in danger,” said HSI Special Agent in Charge Hayes. “They allegedly sold toys with high lead content and cheap knock offs with substandard parts that break easily and pose a choking hazard. HSI is firm on using its unique customs expertise and law enforcement partnerships to put an end to the importation and sale of dangerous goods.”
“Customs and Border Protection is on the forefront of intercepting unsafe, counterfeit products,” said CBP New York Field Operations Director Perez. “We are proud to have done our part preventing these dangerous toys from getting in the hands of our children.”
“Today’s action highlights the unprecedented level of cooperation and coordination among federal regulatory and law enforcement partners to keep U.S. consumers safe,” said CPSC Chairman Tenenbaum. “The United States has some of the strongest toy standards and lowest lead limits in the world, and CPSC is committed to enforcing these child safety requirements at the ports and in the marketplace.”
“When it comes to trademark infringement, don’t mess with Mickey or other American icons,” said NYPD Commissioner Kelly.
In the indictment, the government is seeking forfeiture of the seized vehicles and bank accounts and the restrained properties, in addition to a money judgment to be determined at trial.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case is being prosecuted by Trial Attorney Evan Williams of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Claire Kedeshian and William Campos of the Eastern District of New York. This case was jointly investigated by the HSI Intellectual Property Rights Group and the NYPD, through its participation in the New York Border Enforcement Security Taskforce, with the assistance of CPSC and CBP.
The enforcement action announced today is one of many efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation, and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state, and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/dag/iptaskforce/.
Five Individuals and Five Corporations Charged in New York for Importing and Selling Hazardous and Counterfeit ToysRead the Press Release
Five individuals and five corporations have been charged in an indictment unsealed today in Brooklyn federal court for allegedly importing hazardous and counterfeit toys from China for sale in the United States, announced Assistant Attorney General Lanny Breuer of the Justice Department's Criminal Division; U.S. Attorney for the Eastern District of New York Loretta E. Lynch; Special Agent in Charge of Homeland Security Investigations (HSI) in New York James T. Hayes Jr.; Robert E. Perez, New York Field Operations Director of Customs and Border Protection (CBP); Chairman Inez Tenenbaum of the Consumer Product Safety Commission (CPSC); and Commissioner Raymond W. Kelly of the New York City Police Department (NYPD).
The 24-count indictment charges Chenglan Hu, 51, Hua Fei Zhang, 52, and Xiu Lan Zhang, 60, all Chinese nationals and residents of Queens, N.Y., and Guan Jun Zhang, 29, and Jun Wu Zhang, 28, both naturalized citizens and Queens residents, along with their closely held companies Family Product USA Inc., H.M. Import USA Corp., ZCY Trading Corp., Zone Import Corp. and ZY Wholesale Inc., with importing and trafficking hazardous toys in violation of the Consumer Product Safety Act (CPSA) and toys bearing copyright-infringing images and counterfeit trademarks, smuggling, money laundering and structuring.
“The defendants are accused of importing and selling toys that posed significant health hazards to children or were the product of blatant intellectual property theft,” said Assistant Attorney General Breuer. “They allegedly retooled their operations many times in order to avoid detection, and despite repeated citations by the authorities, they continued to peddle counterfeit toys featuring Dora the Explorer, SpongeBob SquarePants and other popular children's characters. Today’s actions reflect a Justice Department focused on ensuring that consumers receive safe and legitimate goods.”
“For years, the defendants sought to enrich themselves by importing and selling dangerous and counterfeit children’s toys without regard for the law or the health of our children,” said U.S. Attorney Lynch. “Profits from the counterfeit items, as well as toys riddled with lead and choking hazards, went to provide the defendants with luxury cars. We stand committed to protecting the residents of our communities from those who would engage in such conduct.”
The five individual defendants were arrested this morning, and a federal task force comprising HSI agents, other federal agents and NYPD officers, aided by CBP officers and CPSC investigators, executed four search warrants and nine seizure warrants. The agents, officers and investigators searched the defendants’ warehouse, two residences and an email account. In addition, three luxury vehicles, including a Porsche and Lexus, three personal bank accounts and three corporate accounts were seized. The agents also filed lis pendens on two of the defendants' properties in Queens, N.Y. The defendants’ initial appearances are scheduled this afternoon before U.S. Magistrate Judge Ramon E. Reyes Jr.
The indictment charges that from July 2005 through January 2013 the individual defendants used their companies, the corporate defendants, to import toys from China that they sold, both wholesale and retail, from a storefront and warehouse in Ridgewood, N.Y., and other locations in Brooklyn and Queens.
According to the indictment, the defendants’ companies had children’s toys seized by CBP from shipping containers entering the United States from China on 33 separate occasions. Seventeen of the 33 seizures were of violative toys - toys prohibited from import into and distribution in the United States, under laws and regulations enforced by the CPSC, because of excessive lead content, excessive phthalate levels, small parts that presented choking, aspiration or ingestion hazards, and easily accessible battery compartments. Sixteen of the 33 seizures were of toys bearing copyright-infringing images and counterfeit trademarks, including knockoff versions of toys featuring a wide variety of popular children’s characters, such as Winnie the Pooh, Dora the Explorer, SpongeBob SquarePants, Betty Boop, Teenage Mutant Ninja Turtles, Power Rangers, Spiderman, Tweety, Mickey Mouse, Pokémon, as well as those from movies, such as the “Cars,” “Toy Story” and “High School Musical.”
The indictment charges that following each of the 33 seizures, the violator toy company was served written notice by CBP detailing the reason for the seizure, and a representative of the company signed a release form acknowledging the seizure and abandoning the seized goods. Additionally, the violator company and its principal were served written notice by CPSC of the specific safety violations of the toys, and each time a representative of the company signed a release form acknowledging the seizure and abandoning the seized goods.
Due to the number and volume of the seizures, the individual defendants allegedly shifted their use of the companies and alternated formal roles, in order to continue importing and distributing violative and infringing toys. Each time the number of seizures accumulated for one company, the individual defendants allegedly formed a new toy company to continue importing the violative and infringing toys.
“The people and companies involved in this illegal trade not only allegedly infringed on intellectual property rights, they placed the lives of innocent children in danger,” said HSI Special Agent in Charge Hayes. “They allegedly sold toys with high lead content and cheap knock offs with substandard parts that break easily and pose a choking hazard. HSI is firm on using its unique customs expertise and law enforcement partnerships to put an end to the importation and sale of dangerous goods.”
“Customs and Border Protection is on the forefront of intercepting unsafe, counterfeit products,” said CBP New York Field Operations Director Perez. “We are proud to have done our part preventing these dangerous toys from getting in the hands of our children.”
“Today’s action highlights the unprecedented level of cooperation and coordination among federal regulatory and law enforcement partners to keep U.S. consumers safe,” said CPSC Chairman Tenenbaum. “The United States has some of the strongest toy standards and lowest lead limits in the world, and CPSC is committed to enforcing these child safety requirements at the ports and in the marketplace.”
“When it comes to trademark infringement, don’t mess with Mickey or other American icons,” said NYPD Commissioner Kelly.
In the indictment, the government is seeking forfeiture of the seized vehicles and bank accounts and the restrained properties, in addition to a money judgment to be determined at trial.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case is being prosecuted by Trial Attorney Evan Williams of the Criminal Division's Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Claire Kedeshian and William Campos of the Eastern District of New York. This case was jointly investigated by the HSI Intellectual Property Rights Group and the NYPD, through its participation in the New York Border Enforcement Security Taskforce, with the assistance of CPSC and CBP.
The enforcement action announced today is one of many efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation, and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state, and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/dag/iptaskforce/.
Firearms Charges Filed Against Three MenRead the Press Release
Three men were indicted on federal firearms charges, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Joshua Burgess, age 21, of Niles, Ohio, was charged with one count of being a felon in possession of a firearm and ammunition.
The indictment charges that on or about October 28, 2012, Burgess possessed a Rossi, .22 caliber revolver and ammunition, after he had been previously convicted of burglary in the Trumbull County, Ohio, Court of Common Pleas.
Donte Butcher, age 24, of Ravenna, Ohio, was charged with being a felon in possession of firearms and ammunition.
The indictment charges that on or about June 12, 2012, Butcher possessed a Cobra Enterprises, model FS380, .380 caliber semi-automatic pistol, a Glock, model 23, .40 caliber semi-automatic pistol, and ammunition, after he had been previously convicted of felonious assault in the Portage County, Ohio, Court of Common Pleas.
Harold Travis, age 44, of Warren, Ohio, was charged with one count each of being a felon in possession of firearms and ammunition and possession with the intent to distribute heroin.
The indictment charges that on or about June 18, 2012, Travis possessed a Glock, Model 19, 9mm pistol, a Remington, Model 870, 12 gauge shotgun, four rounds of Remington 9mm ammunition; five rounds of Winchester 9mm ammunition; two rounds of Remington 12 gauge ammunition and two rounds of Winchester 12 gauge ammunition. This came after he had been previously convicted of robbery and possession with intent to distribute cocaine in the Michigan Third Judicial Circuit Court, and with being a felon in possession of a firearm, in the U.S. District Court, Northern District of Ohio.
The indictment further charges that on or about June 18, 2012, Travis possessed with the intent to distribute approximately 14.9 grams of heroin.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigations preceding the indictments were conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives - Youngstown Field Office, the Austintown Police Department, the Ravenna Police Department and the United States Marshal Service’s Violent Fugitive Task Force. The matters are being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Federal Law Enforcement Officer Pleads Guilty to Receiving Gratuities from Jamaican Musician and Making False StatementsRead the Press Release
ALEXANDRIA, Va. – David J. Rainsberger, 32, a law enforcement officer with the State Department’s Diplomatic Security Service, pleaded guilty today to receiving unlawful gratuities while stationed at the U.S. embassy in Kingston, Jamaica, and making false statements to the United States government on a national security questionnaire required to maintain his security clearance.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Gregory B. Starr, Director of the Diplomatic Security Service for the U.S. Department of State, made the announcement after the plea was accepted by United States District Judge Gerald Bruce Lee.
Rainsberger faces a maximum penalty of two years in prison on the gratuities charge and five years in prison on the false statements charge when he is sentenced on April 19, 2013.
According to court records, Rainsberger served as an assistant regional security officer for investigations at the U.S. embassy in Kingston, Jamaica, from 2009 to 2011. While there, Rainsberger befriended a well-known Jamaican musician whose entry to the U.S. had been barred because of allegations of criminal conduct. Rainsberger’s investigation of this individual resulted in the reinstatement of his visa, which allowed the individual to travel to the U.S. to take advantage of performance and recording opportunities. On account of the assistance Rainsberger provided him with respect to his U.S. visa, the musician purchased for Rainsberger two luxury watches worth approximately $2,500. In addition, Rainsberger received free admission to nightclubs, backstage access to concerts, and a birthday party hosted by the musician.
At the same time, Rainsberger, who was already married, became engaged to a Jamaican national and intentionally withheld disclosure of the relationship from the U.S. government on Office of Personnel Management Standard Form 86, a national security questionnaire that requires disclosure of close and continuing contact with foreign nationals. Rainsberger also repeatedly accessed, without authority, Department of State visa and passport databases for personal purposes.
This case was investigated by the Diplomatic Security Service. Assistant United States Attorneys Paul J. Nathanson and G. Zachary Terwilliger 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.Federal Grand Jury Indicts Former Police Officer on Drug ChargesRead the Press Release
In Midland today, a federal grand jury returned an indictment charging 38-year-old former Odessa Police officer Jackie Lynn Thompson and five other Odessa, Texas, residents in connection with a methamphetamine distribution conspiracy announced United States Attorney Robert Pitman, Drug Enforcement Administration Special Agent in Charge Joseph D. Arabit, El Paso Division, Federal Bureau of Investigation Special Agent in Charge Mark Morgan, El Paso Division and Midland Police Chief Price Robinson.
The indictment charges Thompson, as well as 36–year-old Jesse Ubaldo Rodriguez, 24-year-old Isai Ramirez, 45-year-old Jaime Yrvegas Castillo, 26-year-old Douglas James Lewis and 48–year-old Ernest Lee McCarty, with one count of conspiracy to possess with intent to distribute methamphetamine. Upon conviction, each defendant faces a mandatory ten years up to life in federal prison.
The indictment alleges that from January 2012 until January 2013, the six defendants conspired to distribute more than 500 grams of methamphetamine. All of the defendants are in federal custody.
This indictment resulted from an investigation by the Drug Enforcement Administration, the Midland Police Department, the Federal Bureau of Investigation, Homeland Security Investigations (HSI), and Texas Department of Public Safety in Midland. Assistant United States Attorney Brandi Young is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Eagle Butte Man Pleads Guilty to Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that Isiah Mesteth, age 22, of Eagle Butte, South Dakota appeared before U.S. District Judge Roberto A. Lange on February 5, 2013 and pled guilty to Count III of the Indictment that charged him with Assault Resulting in Serious Bodily Injury. The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release and an additional 2 years of supervised release upon revocation.
The charge stems from an incident on October 4, 2011 where Mesteth and his significant other argued. Mesteth hit his significant other in the face and head several times, causing her nose and lips to bleed, as well as bruising and swelling to her face and arms resulting in extreme physical pain and serious bodily injury.
The investigation was conducted by the Bureau of Indian Affairs and Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case. Mesteth was remanded to the custody of the U.S. Marshal pending sentencing. A sentencing date has been set for April 29, 2013.
District Man Indicted for Second-Degree Murder and Other Charges in Killing of His Cousin-Victim Died of Head Injuries Suffered in Attack-Read the Press Release
WASHINGTON – Arvel Wills, 23, of Washington, D.C., was indicted today on murder and related charges in the killing of his cousin, Dwayne Wills, last year in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
A grand jury returned the indictment in the Superior Court of the District of Columbia, charging Wills with second-degree murder, obstruction of justice, unlawful possession of a firearm and related weapons offenses. He is to be arraigned on March 7, 2013 before the Honorable Ronna L. Beck. A trial date has been scheduled for June 3, 2013. If convicted, the defendant faces a potential sentence of life in prison.
According to the government’s evidence, on May 26, 2012, at about 4 a.m., Wills and his cousin, Dwayne Wills, 25, engaged in a verbal dispute that turned into a physical altercation at Abbey Place and L Street NE. They had been drinking alcohol at the time of the incident. Witnesses observed Wills pick up his cousin by his neck and leg, hold him over his head, and then forcefully slam the cousin’s head into the street, causing a skull fracture.
Dwayne Wills was unconscious but was revived and taken to Washington Hospital Center where he claimed that he had fallen and hurt himself. He lapsed into a coma. On June 4, 2012, he died as a result of head injuries suffered on May 26, 2012.
The District of Columbia medical examiner=s office has ruled the case a homicide. The evidence indicates that the cause of death was blunt impact trauma to the head. Wills was arrested on Sept. 27, 2012. At the time of his arrest, he possessed a 9 mm Ruger and an extended magazine clip with 13 rounds of ammunition. He has been in custody ever since.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.
This case is being investigated by the Metropolitan Police Department (MPD) and is being prosecuted by Assistant U.S. Attorney Cynthia G. Wright.
13-041Des Moines-Area Developer Sentenced to Twelve Months and One Day in Prison for Bank Fraud SchemeRead the Press Release
DES MOINES, IA – Des Moines area real estate developer Randal L. Walters was sentenced to twelve months and one day in prison for his participation in a bank fraud scheme. Chief Judge James E. Gritzner also ordered Walters to serve a term of 5 years of supervised release following release from prison, $500,000 restitution and directed Walters to pay a $100 special assessment to the crime victims fund.
Walters pleaded guilty to committing bank fraud on September 20, 2012, in connection with a condominium development project on the south side of Des Moines known as the Meadow Cove project. Walters had been charged with diverting funds borrowed for that project to pay for a variety of other items and projects. A consortium of at least ten Iowa and Missouri banks participated in loans to the project. Walters’s co-defendant in the matter is scheduled to be sentenced by Chief Judge Gritzner in April.
The case was investigated by the Federal Bureau of Investigation, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Daniel Young Arraigned and Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings on February 5, 2013, before Chief U.S. District Judge Richard F. Cebull, DANIEL YOUNG, a 35-year-old resident of Billings, was arraigned and pled guilty to bank fraud. Sentencing is set for May 8, 2013. He is currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
YOUNG owned and operated Auto Plaza, Inc. in Billings. Auto Plaza sold used vehicles along with new and used boats, ATV's, motorcycles, snowmobiles and recreational vehicles. Two other individuals were co-owners and/or partners with YOUNG from 2007 to 2010; however, YOUNG was the primary operator of the business. YOUNG operated the dealership and handled the day to day financial transactions.
Auto Plaza, Inc., maintained day-to-day operations with the assistance of several financing companies (also referred to as a "floor plan"), including Dealer Services Corporation and First Interstate Bank ("FIB"). The dealership typically acquired their inventory through the Auto Auction in Billings. After a vehicle was sold by Auto Plaza, Inc., the company with that provided the financing to originally purchase the car was to be paid off with the proceeds of the sale. The paying off of any liens on vehicles by the financing company allowed for a clear title to be passed on to the new buyer of the vehicle.
In approximately October of 2010, FIB canceled the $500,000 floor plan at the Auto Plaza. In approximately November of 2010, Dealer Services Corporation also canceled their financing at the Auto Plaza.
During the course of the investigation, it was learned that the dealership was out of trust possibly since the day they obtained their floor plan loan with FIB as well as Dealer Services Corporation; the dealership sold vehicles with unpaid liens and failed to provide new owners titles; the dealership sold vehicles they didn't pay for; the dealership sold extended warranties for vehicles that were not actually purchased from the warranty companies; and the dealership sold vehicles/boats they held on consignment and didn't pay the owner.
Specifically, on August 1, 2008, in Billings, YOUNG sold a 2005 Mastercraft boat with a lien held by Key Bank, N.A., of Brooklyn, Ohio. When YOUNG sold the boat at the Auto Plaza, he caused the submission of false loan documents to First Interstate Bank; in that the new purchaser was told there was no lien on the boat. First Interstate Bank believed they were obtaining a first position on the title of the boat and authorized the loan. The loan was funded by First Interstate Bank and the Auto Plaza received the money for the boat purchase. In furtherance of the scheme, YOUNG lied to a personal banker at First Interstate Bank about the payoff of the lien to Key Bank, N.A., and caused the submission of a false lien release to the Montana Division of Motor Vehicles on behalf of Key Bank for the boat.
YOUNG faces possible penalties of 30 years in prison, a $1,000,000 fine and 5 years supervised release.
The investigation was conducted by the Federal Bureau of Investigation.
Court Approves Consent Decree to Desegregate Tucson Public SchoolsRead the Press Release
The U.S. District Court for the District of Arizona today approved a consent decree filed by the Department of Justice, together with private plaintiffs and the Tucson Unified School District. The consent decree is a detailed and concrete plan to desegregate Tucson public schools that will provide African-American and Latino students the educational support and programs they need to learn and thrive.
The consent decree is the latest step in this longstanding desegregation case, originally filed in 1974. The United States intervened in the case in 1976. In 2012, the court asked the parties to develop a plan to desegregate the district. After extensive negotiations, the parties jointly submitted the four-year plan requiring the district to undertake a robust set of measures to comply with its longstanding obligations to desegregate its schools. The consent decree touches on nearly every aspect of school operations and lays a strong foundation for a high quality educational environment for all students.
“The plan approved by the court today is a game-changer for the children of Tucson,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “It reflects the collective efforts of families and educators in Tucson, and the strong collaboration of the parties in this case, to forge a new path forward for the Tucson public schools.”
The consent decree will ensure that the district:
· Implements a range of student assignment and transportation strategies to promote integration;
· Builds and supports a diverse community of teachers and administrators;
· Establishes culturally responsive curricula to engage and increase the academic achievement of African-American and Latino students;
· Promotes a safe and inclusive school environment through effective and supportive school discipline policies;
· Provides all students with increased access to advanced academic opportunities;
· Strengthens programs to support the academic success and engagement of African-American and Latino students;
· Develops and implements training and professional development to support culturally responsive learning environments;
· Engages students, families and communities in school programs and activities;
· Conducts ongoing monitoring and data-driven evaluations of its desegregation efforts, and submits regular compliance reports.
The racial desegregation of schools is a top priority of the Civil Rights Division. The United States is involved in nearly 200 racial desegregation cases in school districts around the country. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Convicted Felon from Richmond Sentenced to 250 Months for Helping Lead A Large Cocaine Trafficking RingRead the Press Release
LEXINGTON, KY - A Richmond man with a lengthy criminal history was sentenced today to 250 months in prison for dealing cocaine and using his retail store to conceal his drug trafficking activity.
U.S. District Court Judge Joseph M. Hood sentenced 30-year-old Jakolbe Chenault, aka, “Kolbe Cheese,” for conspiracies to distribute cocaine and launder drug money. Judge Hood enhanced Chenault’s sentence because Chenault qualified as a career offender. A career offender is someone with two or more prior violent crime or drug trafficking offenses.
According to court documents, from May 2009 until October 2011, Chenault helped lead a large cocaine trafficking ring and distributed at least 3.5 kilograms of cocaine in Madison County. More than 10 others were part of the conspiracy.
Chenault co-owned the clothing store known as Ja Ru’s New Fashions with co-defendant Ruben Catching. Chenault acknowledged that he and Catching used drug proceeds to buy merchandise for the store.
Court documents state that Chenault also used drug profits to purchase several vehicles and a house on Oakland Avenue in Richmond. The U.S. Government seized five vehicles and the home.
Chenault has prior felony convictions which include trafficking in a controlled substance, second degree unlawful transaction with a minor and wanton endangerment first degree.
Under federal law, Chenault must serve at least 85 percent of his prison sentence.
Others involved in the drug trafficking conspiracy previously received the following prison sentences: Ruben Catching - 100 months; Christina Thieleman – 120 months; Demetrius Catching – 60 months; Jermaine Carter – 60 months; Da’Lance Roberts – 120 months; James Phelps – 30 months; Bryan Campbell – 180 months; Shaquille Williams – 27 months; Franklin Floyd – 12 months and 1 day; Montel Jenkins – 138 months; Christoper Crutcher – 18 months; Laverne Cructcher – 60 months; Damar Horton – 128 months; and Edward Lamont Ellington – 87 months.
Kerry B. Harvey, U.S Attorney for the Eastern District Kentucky, Stuart L. Lowery, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Robert L. Corso, Special Agent in Charge of DEA; Christopher A. Henry, Special Agent in Charge of IRS’ Criminal Investigation Division; Rodney C. Brewer, Kentucky State Police Commissioner and Larry R. Brock, Richmond Police Chief jointly announced the sentence.
The investigation was conducted by ATF, the Richmond Police Department, IRS-CID, KSP, and DEA. The U.S. Attorney’s Office was represented by Robert M. Duncan Jr. and Roger W. West.
Columbus Man Charged with FraudRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – A federal grand jury here has returned an eleven-count indictment charging Terrance J. King, 46, of Columbus in a scheme to defraud homeowners and businesses, the Columbus Metropolitan Housing Authority (CMHA), the U.S. Department of Housing and Urban Development (HUD), and the Internal Revenue Service (IRS).
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Darryl Williams, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Barry McLaughlin, Special Agent in Charge, U.S. Department of Housing and Urban Development Office of Inspector General announced the indictment today.
The indictment alleges that King started a roofing repair business, Home Improvement Terrance King, LLC, in 2008 and operated in Columbus, Dayton and Springfield. King allegedly devised a scheme to defraud insurance companies and his clients by obtaining money from insurance companies and his clients through false and fraudulent pretenses, representations, and promises. The indictment alleges that King told customers he was providing warrantied roofing materials, when in fact he provided discounted, second-hand shingles and failed to complete promised work for clients.
The indictment also charges King with filing fraudulent documents with CMHA in order to receive subsidized housing assistance. King allegedly represented that he had little or no income or assets in order to qualify for subsidized housing when in reality he had earned substantial income and purchased multiple assets in 2008.
King allegedly committed money laundering by withdrawing U.S. currency received from the scheme from his bank accounts, used the currency to purchase five cashier’s checks totaling approximately $153,627.34 and buying several vehicles and a home. King is accused of willfully filing false federal income tax returns with the IRS for the 2008-2010 income tax years that falsely reported the total income he earned in those income tax years.
The indictment also seeks forfeiture of approximately $153,627.34 in U.S. currency, of which $112,968.34 was directly traceable to the purchase of a property located at 3088 Legion Lane, Columbus, Ohio.
The indictment charges King with three counts of mail fraud, each of which is punishable by up to 20 years in prison; four counts of money laundering punishable by up to 10 years in prison; one count of filing a false claims which is punishable by up to five years in prison; and three counts of willfully filing false federal income tax returns with the IRS which is punishable by up to three years in prison.
“Law abiding citizens expect the government to hold accountable those who use deceit and fraud to line their pockets with money, especially when that money represents stolen federal tax dollars and government funds," said Darryl Williams, Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office.
Stewart commended the investigation conducted by the IRS and HUD Office of Inspector General, and Assistant U.S. Attorneys Laura Fulton and Jessica Knight, who are prosecuting the case. King will be summoned to appear in federal court.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
Columbia Station Man Indicted on Child Pornography, Extortion and Identity Theft ChargesRead the Press Release
A federal grand jury returned an 11-count indictment charging William T. Koch, age 23, of Columbia Station, Ohio, with producing and pandering child pornography, extortion and identity theft, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges from on or about December 19, 2010 through on or about September 18, 2012, Koch attempted to coerce four different minors to engage in sexually explicit conduct, for the purpose of producing visual depictions of such conduct; knowing and having reason to know that such visual depictions would be transmitted, using any means or facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce.
The indictment further charges or about September 9, 2012, Koch used, persuaded, induced, enticed and coerced a fifth minor to engage in sexually explicit conduct for the purpose of transmitting a live visual depiction of such conduct, knowing and having reason to know that such visual depiction would be transmitted, using any means or facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce.
The indictment further charges on or about September 9, 2012, Koch attempted to coerce that same minor to engage in sexually explicit conduct with his ten-year-old brother, for the purpose of transmitting a live visual depiction of such conduct, knowing and having reason to know that such visual depiction would be transmitted, using any means or facility of interstate and foreign commerce, and in and affecting interstate and foreign commerce.
The indictment further charges or about September 9, 2012, Koch distributed, in and affecting interstate and foreign commerce, by computer, any material in a manner that reflected the belief and was intended to cause another to believe that the material was a visual depiction of an actual minor engaging in sexually explicit conduct.
The indictment further charges from or about September 9, 2012 through on or about September 18, 2012, Koch with the intent to extort a thing of value from three of the aforementioned minors, transmitted in interstate and foreign commerce, communications threatening to injure the reputations of said minors.
The indictment further charges that from on or about December 19, 2010, through on or about September 13, 2012, Koch knowingly used, without lawful authority, in and affecting interstate and foreign commerce, a means of identification of another person, with the intent to commit, and in connection with, three of the offenses charged in the indictment.If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan.
The case was investigated by the Federal Bureau of Investigation and the Department of Homeland Security, Homeland Security Investigations.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Colorado Man Indicted on Bank Robbery ChargeRead the Press Release
TOPEKA, KAN. - A Colorado man has been indicted on charges of robbing a bank in Lawrence, Kan., U.S. Attorney Barry Grissom said today.
A federal grand jury in Topeka returned an indictment Wednesday charging Matthew W. Headley, 37, Canon City, Colo., with one count of bank robbery. The indictment alleges that on Sept. 5, 2013, Headley robbed the US Bank at 1807 West 23rd Street in Lawrence, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000.
The FBI investigated. Assistant U.S. Attorney Mike Warner is prosecuting.
OTHER INDICTMENTS
Keith F. Kulper, Jr., 32, Topeka, Kan., is charged with one count of unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred Nov. 5, 2013, in Shawnee County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Mike Warner is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Cocke County Residents Arrested for Drug ViolationsRead the Press Release
GREENEVILLE, Tenn. – Billy Webb, 77, Gary Eugene Teague, 45, Emily Suzanne Sexton, 26, Timothy Jay Gilbert, 50, Christopher Lynn Suggs, 52, Tammie Brown Suggs, 43, and Ella Mae Gregg, 63, all of Newport, Tenn., and Regina Faye Webb, 36, of Cosby, Tenn., were all arrested on Feb. 6, 2013, after being indicted by a federal grand jury on charges involving drug trafficking, specifically involving oxycodone. Ralph Edward Teague, 81, and Clayton Carroll Owenby, 45, both of Newport, Tenn., were also named in the indictment and were already in custody on other charges.
Gary Teague, Emily Sexton, Regina Webb, Christopher Suggs, Tammie Suggs, and Ella Mae Gregg each made their initial appearance before U.S. Magistrate Judge Dennis Inman on Feb. 6, 2013, and were temporarily detained pending detention hearings scheduled for Feb. 7, 2013. Ralph Teague, Billy Webb, and Timothy Gilbert are scheduled for initial appearance on Feb. 7, 2013. Clayton Owenby is scheduled for an initial appearance on Feb. 20, 2013.
According to the indictment on file with the U.S. District Court, the eight count indictment charges these individuals with conspiring to distribute oxycodone, a Schedule II controlled substance. The indictment also charges Ralph Teague and Gary Teague with distribution or possession with intent to distribute oxycodone on five occasions in 2012. Ralph Teague and Gary Teague are also charged with maintaining a residence for the purpose of distributing oxycodone.
If convicted, the defendants face the following penalties: Ralph Teague faces up to 170 years in prison and fines of up to $10,500,000; Billy Webb faces up to 30 years in prison and fines of up to $2,000,000; Gary Teague faces up to 110 years in prison and fines of up to $6,500,000; Clayton Owenby, Regina Webb, Timothy Gilbert, and Ella Gregg each face up to 30 years in prison and fines of up to $2,000,000; Emily Sexton, Christopher Suggs, and Tammie Suggs each face up to 20 years in prison and fines of up to $1,000,000.
This indictment is the result of a joint investigation by the Cocke County Sheriff’s Office and the Tennessee Bureau of Investigation. Assistant U.S. Attorney Suzanne Kerney-Quillen will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.