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Wednesday 6 February 2013
Clayton Charged with Production, Possession of Child Pornography in Indictment Returned WednesdayRead the Press Release
SALT LAKE CITY – A federal grand jury returned a five-count indictment Wednesday afternoon charging John Reid Clayton, age 29, of Stansbury Park, Utah, with four counts of production of child pornography and one count of possession of child pornography.
The indictment alleges Clayton knowingly used four minor children to engage in sexually explicit conduct for the purpose of producing visual depictions of the conduct. According to the indictment, the children were born in 2007, 2010, and 2011.
The indictment follows an investigation by the Tooele County Sheriff’s Office, the Tooele City Police Department, and the Utah Internet Crimes Against Children task force. A federal arrest warrant has been issued for Clayton, who is in state custody.
The potential maximum penalty for each count of production of child pornography is 30 years in prison with a 15-year minimum mandatory sentence. Possession of child pornography carries a potential sentence of 10 years in prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Department of Justice’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Cincinnati Man Charged with 20 Counts of Producing Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – A federal grand jury has charged James O. Napier, 38, of Cincinnati with 20 counts of producing child pornography which involve an 11-month old infant and an approximately nine-year old child, produced at different times.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation (FBI), and agencies in the Greater Cincinnati Internet Crimes Against Children (ICAC) Task Force announced the indictment returned today.
The indictment alleges that in November 2009 Napier used an 11-month old infant for sexual gratification, molested the infant and made a video recording of it before placing it on the internet. The indictment contains 19 counts alleging that as recently as November 2012 Napier sexually exploited a girl who was approximately nine years-old and produced videos of those acts. The indictment also charges Napier with one count each of transportation, distribution and receipt of child pornography.
FBI agents arrested Napier on January 18 based on a complaint filed in U.S. District Court. The complaint was based on information from the FBI office in Phoenix that Napier was advertising the sale of child pornography on a website. Napier is being held without bond.
“Production of child pornography is punishable by at least 15 years and up to 30 years in prison,” U.S. Attorney Stewart said. “Each of the other crimes is punishable by at least five and up to 20 years in prison.”
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Stewart commended the investigation by FBI agents and investigators with the Greater Cincinnati ICAC as well as Assistant U.S. Attorney Christy Muncy who is representing the United States in this case..
Agencies participating in the Greater Cincinnati ICAC, in addition to FBI and the U.S. Attorney’s Office include the U.S. Marshals Service, U.S. Secret Service, Hamilton County Prosecutor Joe Deters, Hamilton County Sheriff Jim Neil and the police departments in Amberley Village, Blue Ash, Cincinnati, and West Chester.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Charlestown Resident Pleads Guilty to Tax Scheme at Suffolk DownsRead the Press Release
BOSTON - A Charlestown man who helped gamblers at Suffolk Downs in East Boston avoid paying taxes on winnings was convicted today.
Gary Boyar, 53, pleaded guilty before U.S. District Judge Richard G. Stearns to corruptly endeavoring to impede the Internal Revenue Service and tax evasion.
Boyar was a “ten-percenter,” a phrase referring to the ten-percent fee charged by those who cash winning tickets for gamblers so that the gamblers’ identities are not reported to the IRS. This scheme allowed gamblers to avoid paying taxes on their winnings, which were taxable income. Boyar cashed tickets and submitted forms to the IRS associated with those tickets using his deceased father’s social security number to obstruct the IRS. During the tax years 2004 through 2006, Boyar cashed more than $2 million worth of winning tickets at Suffolk Downs, and submitted more than 1,700 false IRS forms using his deceased father’s social security number. This conduct obstructed the IRS from determining the identities of the actual winners.In 2008, Boyar filed a false 2004 income tax return claiming a $591.74 refund from the IRS. The return omitted the income earned through his ten-percent fee scheme. Boyar did not file any income tax return for the years 2005 and 2006.
The maximum sentence under the statute is five years in prison for tax evasion and three years in prison for corruptly endeavoring to obstruct the IRS.United State Attorney Carmen M. Ortiz; Assistant Attorney General Kathryn Keneally of the Department of Justice Tax Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Trial Attorney Sean R. Delaney of the Tax Division.
Canadian Man Pleads Guilty to Transporting Kansas Girl for SexRead the Press Release
WICHITA, KAN. – A Canadian man has pleaded guilty to picking up a 12-year-old girl in El Dorado, Kan., and taking her out of state for the purpose of having sex with her, U.S. Attorney Barry Grissom said today.
Stewart Kenneth Cody McGill, 21, Bewdley, Ontario, pleaded guilty to one count of travel with intent to engage in illicit sexual conduct. In his plea, he admitted he drove from Canada to El Dorado, Kan., to pick up a 12-year-old girl and have sex with her. Officers later found McGill and the girl parked on a country road in Michigan. They found text messages on the girl’s cell phone in which McGill indicated he intended to have sex with her and he was aware of her age.
Sentencing is set for April 24. Both parties have agreed to recommend a sentence of eight years in federal prison, followed by five years on supervised release. Grissom commended the FBI, the El Dorado Police Department and Assistant U.S. Attorney Jason Hart for their work on the case.
Cabool Man Charged with Enticing a Minor for Illicit SexRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Cabool, Mo., man was charged in federal court today with enticing a 14-year-old girl to engage in illicit sex.
Scott Dwayne Baker, 45, of Cabool, was charged in a federal criminal complaint filed in the U.S. District Court in Springfield, Mo.
According to an affidavit filed in support of today’s criminal complaint, a Missouri State Highway Patrol trooper received a report on Saturday, Feb. 2, 2013, that a 14-year-old minor had received numerous text messages of a sexual nature from Baker. Baker was well aware of the minor’s age, the affidavit says. The trooper assumed the identity of the child victim and began communicating with Baker via cell phone text messages. During one text session, the affidavit says, Baker sent a pornographic image of himself to the child victim.
On Sunday, Feb. 3, 2013, the undercover officer continued a lengthy text message conversation with Baker during the Super Bowl. Baker sent explicitly sexual messages during this exchange, according to the affidavit. When the undercover officer informed him that the child victim was planning to skip school on Monday, the affidavit says, Baker replied by asking for her to skip school today instead, because he would be off work and they could meet at her house while she was at home alone. Baker was asked to bring a Dr. Pepper and a candy bar for the child victim.
When Baker arrived at the child victim’s residence at approximately noon Monday, Feb. 4, 2013, bringing the Dr. Pepper and candy bar, he was arrested by officers of the Missouri State Highway Patrol.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Missouri State Highway Patrol, the Southwest Missouri Cyber Crimes Task Force and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Buffalo Man Sentenced on Gun ChargeRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Marcus Adside, 24, of Buffalo, N.Y., who was convicted of being a felon in possession of a firearm, was sentenced to 37 months in prison and two years of supervised release by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Timothy C. Lynch, who handled the sentencing, stated that on November 26, 2010, the defendant illegally possessed a firearm while under New York Parole supervision stemming from a prior felony conviction. On the day of his arrest, Adside fled from Buffalo Police officers who were approaching him. During a foot chase, the defendant threw the firearm, however, later DNA testing linked Adside defendant to the firearm.
The sentencing is the culmination of an investigation by Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Frank Christiano, Special Agent in Charge and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Bermuda Bank Account Allegedly Owned by Former Mexican Secretary of Finance Seized by USRead the Press Release
CORPUS CHRISTI, Texas – The United States has seized a bank account located in Bermuda alleged to have been owned by former State of Coahuila, Mexico, Secretary of Finance Hector Javier Villareal Hernandez, United States Attorney Kenneth Magidson announced today.
The account, which is held in Bermuda at Sun Secured Advantage and N.T. Butterfield and Son Limited, contained $2,275,544.41 as of Jan. 4, 2013. The government alleged, as its basis for forfeiture, that the funds in the account were involved in a money laundering transaction, that the property constitutes or was derived from proceeds traceable to offenses including bribery of a public official, or the misappropriation, theft or embezzlement of public funds by or for the benefit of a public official.
The United States alleges in the civil forfeiture complaint filed just a short time ago that the account holder of the Bermuda account is Hernandez. He allegedly transferred stolen monies from the State of Coahuila into an account in Brownsville and later to the Bermuda account, according to the complaint.
In approximately December 2005, Hernandez was appointed by then Governor of Coahuila Humberto Moreira to the position of Under Secretary of Program and Budget for Coahuila. In July 2008, Hernandez was appointed by the same governor to the position of Secretary of Finance for Coahuila. On Aug. 19, 2011, Hernandez resigned that position and became a subject of investigation by the government of Mexico. On Oct. 28, 2011, a local judge from Coahuila charged Hernandez with forging state documents to obtain fraudulent loans for several million pesos between 2008 and 2011. On Oct. 29, 2011, Hernandez was arrested and released on bond. He later fled and remains a fugitive on those charges.
According to the civil complaint, in 2011, Mexican law enforcement officials initiated an investigation involving fraudulent loans obtained from Mexican banks by Hernandez while he held the position of Secretary of Finance. The investigation includes three fraudulent loans from two different Mexican banks from July 2010 to March 2011 totaling more than $3 billion Mexican Pesos ($246 million U.S. dollars based on exchange rates on the dates of the loans). On Feb. 3 and March 8, 2012, Mexican government authorities filed false loan charges and issued arrest warrants for Hernandez’s involvement in the false loans with two Mexican banks. The charges allege Hernandez and other co-conspirators acquired loans by providing false information to Mexican banks. The false information involved the use of false registry stamps or previously approved registry stamps used on the false loan contracts.
The conspiracy is alleged in the complaint to have begun when Hernandez requested a loan on behalf of the State of Coahuila. He then drafted and submitted a false loan contract for approval by the federal Treasury Department. Hernandez conspired to falsify the approval of the submitted loan contract. His alleged co-conspirators, who worked at the federal Treasury Department, placed a fraudulent federal registry stamp or a previously approved registry stamp on the loan contract to make it appear that the loan contract had been approved. After the loan contract obtained the false registry stamp or previously approved registry stamp and received "approval," the contract was submitted to a Mexican federal bank for issuance of a loan to the State of Coahuila. Once the loan proceeds were obtained, they were available for use by the State of Coahuila.
Hernandez had full authority over the disposition of the loan proceeds for the State of Coahuila. The Mexican bank providing the loan proceeds required the State of Coahuila to open a bank account at the specific bank. In order for the State of Coahuila to repay these loans, they requested money from the Mexican federal government. After the State of Coahuila received monies from the Mexican federal government, they did repay the loans to the Mexican banks.
Hernandez opened an offshore investment account in Bermuda during this time period. Since April 2009, it is estimated that Hernandez and his associates received more than $35 million through foreign exchange transactions and cross border wires and subsequently purchased numerous real properties in San Antonio, Brownsville and South Padre Island with the illegal proceeds.
The complaint seeks the forfeiture of $2,275,544.41 on deposit in the Bermuda account.
The Organized Crime Drug Enforcement Task Force investigation leading to the civil forfeiture complaint was conducted in San Antonio, Brownsville, Houston and Corpus Christi. Internal Revenue Service - Criminal Investigation, Drug Enforcement Administration, Homeland Security Investigations and the Texas Attorney General’s Office conducted the investigation. As part of the investigation, the United States sought the assistance of the Prosecutor General of the Republic of Mexico via the Mutual Legal Assistance Treaty in effect between the United States and Mexico.
This case is being prosecuted in the Southern District of Texas by Assistant United States Attorney Julie K. Hampton.
Bahamian Man Pleads Guilty to Alien SmugglingRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, Noel Manheimer, Director of Marine Operations, U.S. Customs and Border Protection (CBP), Rear Admiral William D. Baumgartner, Commander, 7th Coast Guard District, and Matthew Zetts, Chief Patrol Agent, U.S. Border Patrol, announce that defendant Preston Russell, 52, of the Bahamas, pled guilty yesterday to charges of attempted alien smuggling, in violation of Title 8, United States Code, Section 1324.
Sentencing is scheduled for May 7, 2013 before U.S. District Judge Jose Martinez in Fort Pierce, Florida. At sentencing, Russell faces a minimum mandatory sentence of three years and possible maximum statutory sentence of up to 10 years in prison, on each of two counts to which he pled in the Indictment.
According to statements made in open court and documents filed in the case, on November 14, 2012, the U.S. Coast Guard intercepted a small boat cast adrift with engine trouble off the Florida coast. On the boat were Russell and eight passengers, none of whom had authorization or visas to enter the United States. The passengers told authorities how they had embarked from the Bahamas on November 13, 2012, under the direction of Russell, with the intent and expectation to illegally enter the United States near Jupiter, Florida.
Mr. Ferrer commended the investigative efforts of ICE-HSI. Mr. Ferrer also thanked the U.S. Customs and Border Protection, the U.S. Coast Guard, and the U.S. Border Patrol for their work on this investigation. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Atlanta Man Sentenced for Cocaine TraffickingRead the Press Release
PANAMA CITY, FLORIDA – United States Attorney Pamela C. Marsh announced thatChristopher Shaun Lamar, 35, of Atlantawassentenced today to 293 months in federal prison for conspiring to distribute more than five kilograms of cocaine and possessing cocaine with intent to distribute. Sentence was imposed by United States District Judge Richard Smoak, who presided over Lamar’s jury trial in November 2012.
At Lamar’s trial, Panama City Police officers testified that they seized 360 grams of cocaine and 70 grams of crack cocaine from a rental vehicle during a traffic stop in January 2006. Officers learned that a local cocaine distribution group had been receiving kilogram quantities of cocaine from Atlanta. Four members of this organization were convicted of federal drug trafficking offenses at trial and by plea in 2006 and 2007. Also during trial, cooperating defendants testified that Lamar supplied the group with about 25 kilograms of cocaine in late 2005 and early 2006. The group picked up the drugs in Atlanta for sale in north Florida.
Lamar argued at trial and at sentencing that he met the witnesses only briefly at strip clubs, that he was a rap musician, and that he only sold marijuana – not cocaine. However, the witnesses had hundreds of telephone contacts with a cellular telephone attributed to Lamar and were able to give detailed directions to Lamar’s residence near Atlanta. The witnesses gave similar descriptions of Lamar’s criminal activities despite having been arrested months apart, and being housed separately before being interviewed.
Lamar was indicted in November 2007, but was not apprehended until May 8, 2012, when the DeKalb County Police Department arrested him with a half-pound of marijuana, scales, and a loaded pistol. That case arising from that arrest remains pending. Lamar received an enhanced sentence because of his prior felony drug conviction, which stemmed from his arrest on December 16, 2004, with an ounce of cocaine and a loaded revolver.
U.S. Attorney Marsh praised the joint efforts of the Drug Enforcement Administration, the U.S. Marshals Service, and the Panama City Police Department.
Assistant U.S. Attorney Michael T. Simpson prosecuted this case.
Alton Women Sentenced for Their Roles in Fraudulent Tax SchemeRead the Press Release
Angenita M. Smith, 39, of Alton, IL, was sentenced to 24 months in prison, to be followed by two years of supervised release, and Tammy M. Smith, 37, of Alton, IL, was sentenced to 26 months in prison, to be followed by three years of supervised release, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. The sentencings occurred in federal district court.
A. Smith and T. Smith were indicted along with six other individuals in July, 2012. They were charged with participating in a Conspiracy to Impede, Impair, Obstruct and Defeat the Lawful Functions of the IRS in the Ascertainment, Computation, Assessment, and Collection of Federal Income Taxes; Filing a False Federal Income Tax Return and Making False Statements to the IRS Criminal Investigation agents. Each was ordered to pay restitution totaling $54,317.95. Tammy Smith was immediately taken into custody to begin serving her sentence.
The convictions stem from the Smiths’ conduct for falsely preparing and providing Forms W-2 to friends and relatives for the purpose of enabling them to file false federal income tax returns and receive false federal tax refunds. The W-2's were falsified in representing that certain individuals were employees of Masters Touch Cleaning Services, Inc., a Missouri corporation as well as the W-2's also falsely represented wages paid, falsely represented federal income taxes withheld, falsely represented Social Security taxes withheld, and falsely represented Medicare taxes withheld. When questioned, both Smiths lied to federal investigators, resulting in an increase in their prison sentences.
The prosecution is the result of an investigation conducted by the Internal Revenue Service/Criminal Investigations, and was handled by Assistant U.S. Attorney Norman R. Smith.
If you are aware of criminal tax fraud, you are urged to call the I.R.S. Criminal Investigations at (618) 622-2160 or to send the information to the Internal Revenue Service, Fresno, CA 93888.
Akron Man Charged with Bank Robbery, Carjacking and Firearms ViolationsRead the Press Release
A federal grand jury returned a six-count indictment charging Robert E. Campbell, Jr., age 31, of Akron, Ohio, with three bank robberies in the Summit County area, one count of being a felon in possession of a firearm and ammunition, one count of carjacking, and one count of brandishing a firearm during the commission of a violent crime, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Campbell is accused of robbing the Charter One Bank on East Waterloo Road, the First Merit Bank on Wedgewood Drive and the US Bank on Manchester Road, all within a three-day period.
With the assistance of the Akron Police Department, Campbell was identified through bank surveillance photos. When located, Campbell carjacked a vehicle at gunpoint and led Summit County Sheriff’s Deputies on a slow-speed chase through the Kenmore area which resulted in him striking two vehicles, which resulted in injuries to some occupants. Campbell was then apprehended by Summit County Sheriff’s Deputies.
If convicted, Campbell’s sentence will be determined by the Court after review of factors unique to this case, including his prior criminal record, if any, his role in the offenses and the unique characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Teresa Dirksen following an investigation by the Akron Police Department, Federal Bureau of Investigation, U.S. Marshal’s Service, Bureau of Alcohol, Tobacco and Firearms and Summit County Sheriff’s Office.
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.
Accomplice to Armed Robbery Pleads Guilty to Hobbs Act ViolationRead the Press Release
ALBUQUERQUE – Rebecca Aguilar, 25, of Albuquerque, N.M., pled guilty this morning to aiding and abetting the armed robbery of an Albuquerque-are business under a plea agreement with the U.S. Attorney’s Office. Under the terms of her plea agreement, Aguilar will be sentenced to a term of four to five years in prison. Aguilar will remain in custody pending her sentencing hearing, which has yet to be set.
Aguilar was arrested on Oct. 15, 2012, based on an eight-count indictment that also charged co-defendant Oscar Marquez, 22, of Albuquerque, and alleged four Hobbs Act armed robberies and four counts of using a firearm during and in furtherance of a crime of violence. The indictment charged Marquez with robbing four Albuquerque-area businesses and using a firearm during each of the robberies. Count 7 of the indictment charged Aguilar with aiding and abetting Marquez with an armed robbery that occurred on May 9, 2012.
On Jan. 18, 2013, Marquez pled guilty to Counts 3, 5, 6 and 7 of the indictment which charged him with three counts of Hobbs Act robbery (the armed robberies of Cricket Wireless on May 29, 2012 , King Wireless on June 7, 2012, and Cricket Wireless on June 9, 2012) and one count of using a firearm during a crime of violence. Marquez also pled guilty to an information charging him with a fourth Hobbs Act robbery relating to the June 10, 2012 armed robbery of a Game Stop Store.
During today’s plea hearing, Aguilar pled guilty to Count 7 of the indictment, the sole charge against her, and admitted assisting Marquez in robbing a Cricket Wireless Store located on Juan Tabo NE on June 9, 2012. In her plea agreement, Marquez stated that Marquez entered the store, pointed a handgun at the clerk, and demanded and obtained money from the clerk. Aguilar admitted knowing that Marquez intended to commit the armed robbery and that she helped him escape with the money.
Marquez has been in federal custody since his arrest on Oct. 17, 2012. He remains detained pending his sentencing hearing, which has yet to be scheduled. Under the terms of his plea agreement, Marquez will be sentenced to 20 years in prison.
This case was brought as part of a law enforcement initiative launched in July 2012, by the FBI’s Violent Crimes and Major Offender Squad and the Albuquerque Police Department’s Armed Robbery Unit that targets suspects implicated in commercial armed robberies. The new initiative is part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
The case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department, with assistance from the District Attorney’s Office for the Second Judicial District of the State of New Mexico, and is being prosecuted by Assistant U.S. Attorney Jon K. Stanford.
Tuesday 5 February 2013
Woman Initially Charged as ‘Jane Doe’ in Child Pornography Production Case Named in Federal Grand Jury IndictmentRead the Press Release
Letha Montemayor Tucker now also charged with child sex trafficking
LOS ANGELES – The North Hills woman identified last month as one of two suspects sought in connection with a child pornography case tied to the San Fernando Valley was indicted this afternoon on federal charges of producing child pornography, as well as child sex trafficking.
Letha Montemayor Tucker, who uses the nickname “Butterfly,” 52, was named in a four-count indictment returned by a federal grand jury. The indictment accuses Tucker of conspiracy to produce child pornography, production of child pornography, conspiracy to engage in child sex trafficking, and sex trafficking of children.
If she is convicted of all four charges in the indictment, Tucker would face a mandatory minimum prison sentence of 10 years and could be sentenced to as much as life in federal prison.
The indictment comes one month after tips provided by the public resulted in the identification of Tucker as one of two individuals allegedly involved in the production of a widely circulated series of child pornography images taken about 11 years ago. The pictures show an adult man, “John Doe,” and a woman, now believed to be Tucker, sexually molesting a girl whom investigators have now confirmed was between 11 and 13 at the time the images were taken.
“The sex trafficking of minors is unconscionable under any circumstances,” said United States Attorney André Birotte Jr. “As this case demonstrates, we will spare no effort in locating and prosecuting those who seek to take advantage of young, vulnerable victims.”
According to the indictment, between 2000 and 2001, both Tucker and the victim lived in a residential hotel in the Los Angeles area. The indictment alleges that Tucker worked as a prostitute, provided the victim with crack cocaine and, on multiple occasions, directed the child to engage in sexual acts with Tucker’s male clients. In or about May 2001, the indictment states Tucker contacted “John Doe” and asked whether he would be interested in having sex with the victim in exchange for money. Subsequently, Tucker brought the victim to “John Doe’s” residence. There the defendant and “John Doe” engaged in sexual acts with the victim and photographed the encounter.
Based upon forensic analysis conducted by the National Center for Missing & Exploited Children (NCMEC), investigators believe that the images were produced in the Los Angeles area, specifically in the San Fernando Valley. The child pornography images were first discovered by HSI special agents in Chicago in 2007. The material was submitted to NCMEC’s Child Victim Identification Program, which determined the victim had not yet been identified and was not linked with other known child pornography images.
As a result of leads provided by the public, special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) located the victim within a week after the case was announced on January 3. She is safe and is cooperating with the ongoing investigation.
“The victim in this case was devastated when she learned from investigators that these sexually explicit images had been distributed over the Internet,” said ICE Director John Morton. “The reality is, every time such images are viewed, the children shown are exploited yet again. That is why we owe it to these young victims to vigorously pursue these cases and hold the perpetrators accountable for their reprehensible crimes.”
While Tucker and the victim were quickly found, the identity and whereabouts of “John Doe” remain unknown. In the images in the child pornography series, “John Doe’s” face has been purposely obscured, but he appears to be a 40- to 50-year-old white male, would now be approximately 11 years older. HSI agents continue to pursue several leads, but they are appealing again for the public’s help. Anyone with information or tips that can assist in the ongoing investigation is encouraged to call 1-866-DHS-2ICE or visit http://www.ice.gov/exec/forms/hsi-tips/tips.asp.
Tucker, who is currently being held without bond, is scheduled to be arraigned on the indictment in United States District Court on February 13.
Release No. 13-021
Waterloo Man Receives Additional Prison Time for Failing to Surrender for Service of Federal SentenceRead the Press Release
A man who failed to appear for service of his federal sentence was sentenced today to more than two additional years in federal prison.
Roy Lee Turner, III, age 32, from Waterloo, Iowa, received the prison term after a November 9, 2012, guilty plea to one count of failing to surrender for service of a federal sentence.
At the plea hearing, Turner admitted that, on May 21, 2012, Turner failed to surrender to the United States Marshal for service of a federal sentence. Turner had previously been sentenced on April 30, 2012, to five years’ imprisonment on one count of federal financial aid fraud. Following imposition of the sentence, Turner was ordered to surrender himself to the United States Marshal in Cedar Rapids at 10:00 a.m. on May 21, 2012. Turner admitted that he knew of the order to turn himself in and he intentionally failed to do so.
Turner was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Turner was sentenced to 27 months’ imprisonment. A special assessment of $100 was imposed, and he must serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Peter Deegan and was investigated by the United States Department of Education and the United States Marshal’s Service.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-63. The case file number for Turner’s prior financial fraud case is 11-152.
U.S. Attorneys Timothy Q. Purdon and Sanford C. Coats to Lead Attorney General’s Native American Issues SubcommitteeRead the Press Release
WASHINGTON – Attorney General Eric Holder announced today the appointment of U.S. Attorney for the District of North Dakota Timothy Q. Purdon as chair of the Native American Issues Subcommittee (NAIS) of the Attorney General’s Advisory Committee of U.S. Attorneys (AGAC). Attorney General Holder also appointed U.S. Attorney for the Western District of Oklahoma Sanford C. Coats to serve as vice chair.
"The Native American Issues Subcommittee, the oldest subcommittee of the Attorney General’s Advisory Committee, is vital to the department’s mission in Indian Country to build and sustain safe and secure communities for future generations," said Attorney General Holder. "I am confident that U.S. Attorneys Purdon and Coats have the expertise and dedication to lead this important group as we work to fulfill the department’s role in protecting and serving this country’s first Americans."
U.S. Attorney Purdon was appointed to the NAIS in 2010, and he served as vice chair throughout 2012. U.S. Attorney Purdon replaces U.S. Attorney for the District of South Dakota Brendan V. Johnson.
U.S. Attorney Coats was appointed to the NAIS in 2010, and he also served in the AGAC from 2010 through 2011. U.S. Attorney Coats continues his work with the AGAC’s Resource Allocation Working Group.
Attorney General Holder also thanked U.S. Attorney Johnson for serving as chair of the NAIS for the past three years, 2009-2012. "Brendan Johnson’s dedication and commitment to improving public safety in Indian Country will continue to positively impact tribal communities for years to come. His leadership has brought the U.S. Attorney community together to address a myriad of important issues in Indian Country, and his guidance has been an invaluable asset to this department. I look forward to my ongoing work with U.S. Attorney Johnson as a member of the AGAC."
The AGAC was created in 1973 to serve as the voice of the U.S. Attorneys and to advise the Attorney General on policy, management, and operational issues impacting the offices of the U.S. Attorneys. The NAIS is made up of 30 U.S. Attorneys from across the United States whose Districts contain Indian Country or one or more federally recognized tribes. The NAIS focuses exclusively on Indian Country issues, both criminal and civil, and is responsible for making policy recommendations to the Attorney General of the United States regarding public safety and legal issues that impact tribal communities.
U.S. Attorneys Timothy Q. Purdon and Sanford C. Coats to Lead <br /> Attorney General’s Native American Issues SubcommitteeRead the Press Release
Attorney General Eric Holder announced today the appointment of U.S. Attorney for the District of North Dakota Timothy Q. Purdon as chair of the Native American Issues Subcommittee (NAIS) of the Attorney General’s Advisory Committee of U.S. Attorneys (AGAC). Attorney General Holder also appointed U.S. Attorney for the Western District of Oklahoma Sanford C. Coats to serve as vice chair.
“The Native American Issues Subcommittee, the oldest subcommittee of the Attorney General’s Advisory Committee, is vital to the department’s mission in Indian Country to build and sustain safe and secure communities for future generations,” said Attorney General Holder. “I am confident that U.S. Attorneys Purdon and Coats have the expertise and dedication to lead this important group as we work to fulfill the department’s role in protecting and serving this country’s first Americans.”
U.S. Attorney Purdon was appointed to the NAIS in 2010, and he served as vice chair throughout 2012. U.S. Attorney Purdon replaces U.S. Attorney for the District of South Dakota Brendan V. Johnson.
U.S. Attorney Coats was appointed to the NAIS in 2010, and he also served in the AGAC from 2010 through 2011. U.S. Attorney Coats continues his work with the AGAC’s Resource Allocation Working Group.
Attorney General Holder also thanked U.S. Attorney Johnson for serving as chair of the NAIS for the past three years, 2009-2012. “Brendan Johnson’s dedication and commitment to improving public safety in Indian Country will continue to positively impact tribal communities for years to come. His leadership has brought the U.S. Attorney community together to address a myriad of important issues in Indian Country, and his guidance has been an invaluable asset to this department. I look forward to my ongoing work with U.S. Attorney Johnson as a member of the AGAC.”
The AGAC was created in 1973 to serve as the voice of the U.S. Attorneys and to advise the Attorney General on policy, management, and operational issues impacting the offices of the U.S. Attorneys. The NAIS is made up of 30 U.S. Attorneys from across the United States whose Districts contain Indian Country or one or more federally recognized tribes. The NAIS focuses exclusively on Indian Country issues, both criminal and civil, and is responsible for making policy recommendations to the Attorney General of the United States regarding public safety and legal issues that impact tribal communities.
Two Sentenced to Federal Prison for Insurance FraudRead the Press Release
Defendants Ordered to Pay Victim Insurance Companies Restitution of Over $147,000
COEUR D'ALENE – Michael Robert Persky, 45, and Shelley Lynn Dunkel, 42, of Malibu, California, were sentenced yesterday in United States District Court in Coeur d’Alene on multiple counts of wire fraud and mail fraud, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge sentenced Persky to 24 months in prison followed by three years of supervised release, fined him $18,000, and ordered restitution of $92,636.61. Dunkel was sentenced to six months in prison followed by three years of supervised release, with the first six months on home detention, and ordered to pay restitution of $54,518.68.
Persky and Dunkel were convicted by a federal jury late last year following a seven day trial. Persky was convicted of ten counts of wire fraud and eight counts of mail fraud, and Dunkel of six counts of wire fraud and six counts of mail fraud, for their scheme to defraud American Family Mutual Insurance Company and Progressive Northwestern Insurance Company. The jury heard evidence that from November 18, 2005, through June 26, 2008, Persky and Dunkel submitted false and fraudulent information to obtain homeowners, vehicle, and watercraft insurance in Idaho, although Persky’s permanent residence was based in California. The jury also heard evidence that Persky falsely claimed as stolen a 2002 XKS Jaguar, a 2005 Winnebago and its contents, and two watercraft and trailer. According to court records, Persky signed documentation relinquishing ownership of the property to the insurance carriers and received settlements of approximately $91,000. When the Jaguar and Winnebago were recovered, Persky took possession, but failed to notify the insurance carriers.
“These sentences reinforce the jury’s verdict and send the clear message that those who defraud the insurance system for their own personal gain will be punished,” said Olson. “This office will continue to work closely with our federal and state law enforcement partners to vigorously investigate and prosecute financial fraud. I commend the cooperative efforts that resulted in this successful prosecution.”
“The U.S. Postal Inspection Service is committed to aggressively investigating those individuals who misuse the U.S. Mail for fraudulent purposes,” said Bradley Kleinknecht, U.S. Postal Inspector in Charge, Seattle Division.
The case was investigated by the U.S. Postal Inspection Service, the National Insurance Crime Bureau, and the Idaho State Department of Insurance.
Three Men Charged with Drug and Firearm Offenses After Fbi Hartford Gang Task Force InvestigationRead the Press Release
February 5, 2013David B. Fein, United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the FBI, announced that a federal grand jury in Hartford returned a 17-count indictment today charging VINCENT NELSON, also known as “June,” 27, of Hartford, STEVEN GRANGER, 27, of Hartford, and HECTOR ALFONSO, 31, of East Hartford, with various narcotics distribution and firearms possession offenses.
The matter stems from an investigation led by the FBI’s Northern Connecticut Violent Crimes Gang Task Force, which includes representatives of the FBI, Connecticut State Police, the Hartford Police Department and the Connecticut Department of Correction, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The indictment alleges that between November 2012 and January 2013, NELSON and GRANGER conspired to possess with intent to distribute 280 grams or more of cocaine base (“crack cocaine”). The indictment also charges NELSON and GRANGER with multiple counts and ALFONSO with one count of possession with intent to distribute, and distribution of, various quantities of crack cocaine. NELSON is also charged with one count of possession with intent to distribute heroin and one count of possession with intent to distribute cocaine.
In addition, the indictment charges NELSON with possessing three firearms in furtherance of a drug trafficking crime, and with possession of firearms and ammunition by a convicted felon. GRANGER is also charged with one count of possession of ammunition by a previously convicted felon.
NELSON, GRANGER and ALFONSO have been detained since their arrests on January 23, 2013. On that date, court-authorized searches of NELSON’s residence at 2 Warner Street Extension and GRANGER’s residence at 52 Elliott Street resulted in the seizure of three handguns, assorted ammunition, body armor, approximately 500 grams of crack cocaine, approximately 170 grams of cocaine and more than $45,000 in cash.
The indictment seeks the forfeiture of the seized firearms, ammunition and cash, as well as two vehicles.
U.S. Attorney Fein stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being prosecuted by Assistant United States Attorney Brian P. Leaming.
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[email protected]Three Indicted in FAMU Computer Hacking CaseRead the Press Release
TALLAHASSEE, FLORIDA – Carl Joseph Coutard, 21, and Carliss Pereira, 22, both of Miami, Florida, and Christopher J. Wright, 22, of Fort Lauderdale, have been charged with conspiring to access the iRattler computer system at the Florida A&M University (FAMU) in order to divert financial aid monies to themselves. The indictment was announced today by Pamela C. Marsh, U.S. Attorney for the Northern District of Florida.
The eight-count indictment alleges that between March and November 2010, the three men illegally used the personal identifying information of their fellow FAMU students, without the students’ permission, to access the students’ financial aid information in the iRattler system. As alleged in the indictment, the defendants then changed the students’ bank account and routing information without the students’ knowledge or consent. When the students were due to receive financial aid refunds, the defendants would divert these monies to bank accounts the defendants had fraudulently opened in the students’ names.
In addition to conspiracy, Wright is charged with one count of using an unauthorized access device, Coutard and Pereira are charged with possession of more than 15 unauthorized access devices, and Coutard is charged with obtaining information from a protected computer without authorization.
The unauthorized access device offenses are punishable by up to 10 years in prison. The computer intrusion and conspiracy offenses each carry a maximum sentence of 5 years in prison.All three men are also charged with aggravated identity theft, which carries a mandatory term of 2 years in prison, which must be served consecutively to any other sentence.
U.S. Attorney Marsh praised the work of the Federal Bureau of Investigation, the FAMU Police Department, the United States Department of Education, the United States Secret Service, and the Florida Department of Law Enforcement, whose joint investigation led to the indictment in the case.
The case is being prosecuted by Assistant U.S. Attorney Karen Rhew-Miller.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Taylor County, Kentucky Man Guilty of Production and Possession of Child PornographyRead the Press Release
– Victims were under five years of age
LOUISVILLE, Ky. – A Taylor County, Kentucky man has pleaded guilty in United States District Court, before Chief District Judge Joseph H. McKinley Jr., to a 15 count federal grand jury indictment charging him with violating federal child pornography laws including the production and possession of child pornography announced David J. Hale, United States Attorney for the Western District of Kentucky.
Tony Edwin Davis, 50, of Campbellsville, Kentucky pleaded guilty to charges that between December 18, 2009 and November 28, 2010 on 14 occasions, Davis, knowingly employed, used persuaded, induced, enticed and coerced, two minor females under five years of age, to engage in sexually explicit conduct for the purpose of producing a visual depiction. In addition, Davis pleaded guilty to one count of knowingly possessing child pornography on or about May 20, 2012.
According to an Affidavit filed by an agent with the Federal Bureau of Investigation (FBI), in support of a criminal complaint against Davis, the FBI was contacted by the Taylor County Sheriff’s Office and Campbellsville, Kentucky Police Department on August 10, 2012, when a cell phone, formerly in the possession of the defendant, was found to have images of child pornography.
Davis faces a statutory mandatory minimum sentence of 25 years in prison. The maximum potential penalties are 710 years in prison, a fine of $3,750,000 and a period of supervised release of at least 5 years and could be for the remainder of his life. Sentencing is scheduled before Chief Judge McKinley on May 9, 2013, at 10:30 in Bowling Green, Kentucky. Davis is in the custody of the U.S. Marshals Service.
This case is being prosecuted by Assistant United States Attorney A. Spencer McKiness and is being investigated by the FBI, the Taylor County Sheriff’s Department and the Campbellsville Police Department.
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."
St. Paul Man Indicted for Robbing US BankRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 47-year-old St. Paul man was indicted in connection with the December 13, 2012, armed robbery of the US Bank branch located at 711 Cleveland Avenue South in St. Paul. David Judin Greer was specifically charged with one count of armed bank robbery and one count of brandishing a firearm during a crime of violence.
The indictment alleges that on December 13, Greer stole $3,952 from the bank after brandishing a .38-caliber revolver. According to a law enforcement affidavit filed in the case, a man, later identified as Greer, walked into the bank at approximately 2:00 p.m. He allegedly approached the teller counter, pulled the gun, and demanded twenties, fifties, and one-hundred-dollar bills. The teller took money from the cash drawer and stuffed it into the white plastic bag that Greer provided. After reportedly demanding and receiving even more money, he fled the premises.
Immediately following the robbery, the Federal Bureau of Investigation released to the public digital images of the robber. Later that same day, the FBI received a telephone call from an anonymous individual who identified the robber as Greer. Authorities then began surveillance on Greer’s residence.On December 29, 2012, the FBI received a call from the St. Paul Police Department, indicating officers there had just conducted a welfare check on Greer at the request of a family member. Officials subsequently transported Greer to Regions Hospital, where Greer reportedly gave law enforcement consent to search his residence. There, officers located the revolver used in the bank robbery. It was hidden above the duct work in the basement.
If convicted, Greer faces a potential maximum penalty of 25 years in prison for armed robbery and seven years for brandishing of a firearm. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the FBI and the St. Paul Police Department. It is being prosecuted by Assistant United States Attorney Clifford B. Wardlaw.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.
St. Paul Felon Sentenced for Possessing A 12-gauge ShotgunRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 25-year-old felon from St. Paul was sentenced for possessing an unregistered 12-gauge shotgun. United States District Court Judge David S. Doty sentenced Michael Romeo Geraci to 120 months in prison on one count of possession of an unregistered firearm. Geraci was indicted on May 22, 2012, and pleaded guilty on September 6, 2012.
In the plea agreement, Geraci admitted that on April 10, 2012, he possessed a sawed-off shotgun, which was not registered to him in the National Firearms Registration and Transfer Record. Geraci had the shotgun in his possession while driving a stolen minivan in the parking lot of the Uni/Dale Mall in St. Paul, where he was ultimately arrested. Geraci further admitted that he had the firearm because he intended to use it in connection with another felony offense, namely aiding and abetting the distribution of methamphetamine.
Because he is a felon, Geraci is prohibited under federal law from possessing any type of firearm at any time. His prior Ramsey County convictions include fleeing from a police officer in a motor vehicle (2007) and second-degree assault with a dangerous weapon (2009).This case was the result of an investigation by the St. Paul Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorneys Surya Saxena and LeeAnn K. Bell.
St. Louis Man Sentenced to 20 Years on Drug and Weapons ChargesRead the Press Release
St. Louis, MO - KELVIN MILLER, St. Louis, MO, pled guilty to four felony counts of possession with the intent to distribute heroin in March 2012. He was scheduled for trial on the remaining two counts of the original indictment. On the first day of trial, January 23, 2013, he pled guilty to two felony counts of being a previously convicted felon in possession of firearms, before United States District Judge Rodney W. Sippel.
This case was investigated by the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant United States Attorney Dean Hoag handled the case for the U.S. Attorney’s Office.
Sentences for February 04, 2013Read the Press Release
U.S. Attorney Christopher A. Crofts announced that on February 4, 2013, Natalie Faith Brown, a twenty-seven year old Northern Arapaho Tribal member from the Wind River Indian Reservation, was sentenced by Chief U.S. District Court Judge Nancy Freudenthal to one year probation with the first six months to be spent in a residential re-entry center, followed by three months of home confinement, a $100.00 special assessment, and $13,578.00 in restitution for medical costs associated with Brown driving while intoxicated and crashing on August 16, 2012, causing serious injury to one passenger and less serious injuries to a second passenger. Brown must report to the residential re-entry center on or before February 14, 2013. The case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs.
U.S. Attorney Christopher A. Crofts announced that on February 4, 2013, Louis YellowFox, a twenty-eight year old Northern Arapaho Tribal member from the Wind River Indian Reservation, was sentenced by Chief U.S. District Court Judge Nancy Freudenthal to time served (approximately four months), one year of supervised release, and a $100 special assessment for his May 10, 2012, escape from custody. As part of prior sentence, YellowFox failed to turn himself into the Residential Reentry Center in Mills, Wyoming. This case was investigated by the U.S. Marshals Service.
Schuyler County Man Pleads Guilty to Possession of Chemicals Used to Manufacture MethamphetamineRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr,. announced today that Joseph Baudendistle, 38, of Odessa, N.Y., pleaded guilty before U.S. District Judge David G. Larimer to possession of chemicals used to manufacture methamphetamine. The charge carries a maximum penalty of 10 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Charles E. Moynihan, who is handling the case, stated that during the course of an investigation into the manufacturing of methamphetamine in the Southern Tier area of New York State, law enforcement officers learned that Baudendistle purchased in excess of nine grams of ephedrine base products within a 30 day period, a violation of the United States drug laws. The defendant visited four different pharmacies in Watkins Glen, N.Y. and Montour Falls, N.Y. between January of 2011 and February of 2012 and purchased in excess of the permitted amount of Sudafed and Suphedrine.
Baudendistle was arrested in August of 2012, along with Khristine Bedient, Robert Getman, Jr., Margaret Shermer and Joshua Watson. He is the second defendant to be convicted. Joshua Watson was convicted of a similar charge on January 24, 2013 and will be sentenced on March 28, 2013.
Sentencing is scheduled for March 24, 2013 at 10:30 a.m. before Judge Larimer.
The plea is the culmination of an investigation by the Schuyler County District Attorney’s Office, under the direction of District Attorney Joseph Fazzari, Special Agents of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, the Schuyler County Sheriff’s Department, under the direction of Sheriff William Yessman, and the Watkins Glen Police Department, under the direction of Chief Thomas R. Struble.San Luis Obispo Police Officer Arrested on Federal Bribery ChargesRead the Press Release
LOS ANGELES – A detective with the San Luis Obispo Police Department was arrested this morning after being charged in a bribery scheme in which he allegedly took cash and narcotics from two individuals. In return, the police officer allegedly provided these “cooperating witnesses” with narcotics for their own use, as well as fake drugs to sell to drug dealers.
Cory Pierce, 39, of Arroyo Grande, was taken into custody this morning without incident by agents with the Federal Bureau of Investigation. Pierce was charged with one count of bribery in a criminal complaint filed yesterday in United States District Court in Los Angeles.
According to the affidavit in support of the complaint, Pierce is a six-year veteran of the San Luis Obispo Police Department who was most recently assigned to a narcotics task force with the San Luis Obispo County Sheriff’s Office. The complaint describes how Pierce cultivated two sources – identified in the complaint only as “CW1” and “CW2” – who have since cooperated with the FBI’s investigation.
After CW2 was arrested for heroin possession in 2011, CW2 and his girlfriend, CW1, agreed to cooperate with Pierce. But soon after they agreed to work with the police officer, Pierce made unusual requests for the informants to bring him narcotics. As the requests continued, Pierce allegedly provided placebo pain pills and real narcotics to CW1 and CW2. Pierce exchanged those pills and drugs for cash and various narcotics brought to him by the CWs, including oxycodone, heroin and drugs that treat opiate addition, according to the complaint, which goes on to state that Pierce on several occasions provided CW1 with methamphetamine that was still in police evidence bags. The complaint alleges that CW1 obtained prescriptions for pain pills from her doctor and from emergency rooms to give to Pierce, and that Pierce would provide her with money to purchase the prescriptions.
The complaint alleges that Pierce used his position as a police officer to influence CW2’s probation officer to perform little or no supervision of CW2 and informed CW2 that he could “work off” his heroin possession charge by cooperating with Pierce. The complaint goes on to allege that Pierce informed the CWs about ongoing police investigations, including where best to purchase narcotics and which drug houses to stay away from, so that they would not be caught purchasing drugs.
Pierce allegedly had the CWs set up a meeting with a drug dealer, and, following the meeting, Pierce pulled over the dealer’s vehicle over at gunpoint, seized morphine pills and let the dealer go without making an arrest.
When the CWs advised Pierce that the drug dealers to whom they had sold the placebo pills realized they had received a deceptive product and wanted revenge, Pierce asked for their identities and indicated he would “take care of it.”
Last month, CW2 began cooperating with a federal investigation and recorded multiple conversations with Pierce. During those recorded conversations, Pierce allegedly instructed CW2 to sell placebo pills to a drug dealer for $11,000, money that was to be split between Pierce and CW2. On multiple occasions, Pierce asked CW2 for Suboxone, which is used treat opiate addictions, indicating that he was personally using the drug, according to the complaint affidavit.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Pierce will have an initial appearance before a United States Magistrate Judge later this afternoon in United States District Court in Los Angeles.
If convicted of the bribery charge alleged in the criminal complaint, Pierce would face a statutory maximum penalty of 10 years in federal prison.
This ongoing investigation was conducted by the FBI with the assistance of the San Luis Obispo Police Department and the San Luis Obispo Sheriff's Department.
Release No. 13-020
Rochester Man Arrested for Making False Threats Against KodakRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Omer Fadhel Saleh Mohammed, 31, of Rochester, N.Y., was arrested and charged by criminal complaint with making false bomb threats. The charge carries a maximum penalty of 10 years in prison, a fine of $250,000.00 or both.
Assistant U.S. Attorney Anthony M. Bruce, who is handling the case, stated that according to the complaint, between September 24, 2012 and January 24, 2013, the defendant made twenty one 911 calls claiming that a terrorist was going to bomb the Kodak Corporation. For instance, the complaint alleges that during one call Mohammed stated the terrorists were "going to blow up the big Kodak." The 911 calls that specifically referenced Kodak resulted in emergency responses by the Rochester Police and Fire Departments.
The defendant made an initial appearance before Magistrate Judge Marian W. Payson on February 4, 2013. Mohammed was release on his own recognizance and is due back in court March 4, 2013 at 9:00 a.m.
The criminal complaint is the result of an investigation by the Rochester Joint Terrorism Task Force and the Federal Bureau of Investigation, under the direction of Special Agent in Charge Christopher M. Piehota.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent unless and until proven guilty.
Robert Kirk Belton Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on February 4, 2013, before U.S. District Judge Sam E. Haddon, ROBERT KIRK BELTON, a 49-year-old resident of Poplar, pled guilty to possession with intent to distribute methamphetamine. Sentencing has been set for May 20, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
On September 5, 2012, BELTON fled the scene of a traffic stop near Wolf Point. While driving away, BELTON threw a Crown Royal bag out the window. The bag contained approximately $12,000 and over 50 grams of a substance containing a detectable amount of methamphetamine.
BELTON faces possible penalties of a mandatory minimum of 5 years and could be sentenced to 40 years, a $5,000,000 fine, and 4 years supervised release.
The investigation was a cooperative effort between the Federal Bureau of Investigation, the Fort Peck Law Enforcement, and the Roosevelt County Sheriff's Office.
Registered Sex Offender Indicted for Production and Possession of Child PornographyRead the Press Release
Today, United States Attorney James L. Santelle of the Eastern District of Wisconsin announced the grand jury returned a three-count indictment against Jermaine L. Johnson (age: 36) formerly of Waukesha, Wisconsin.
Specifically, Johnson was indicted for two counts of production of child pornography and one count of possession of child pornography. Count one of the indictment alleges that on or about July 20, 2009, Johnson knowingly produced child pornography which involved a minor female engaging in sexually explicit conduct. Count two alleges that on or about August 2, 2011, Johnson again knowingly produced child pornography which involved a second minor female engaging in sexually explicit conduct. Count three of the indictment alleges Johnson possessed child pornography on or about March 15, 2012.
If convicted of production of child pornography, as set forth in count one of the indictment, Johnson faces a minimum of 15 years and a maximum of 30 years’ imprisonment. If convicted of production of child pornography, as set forth in count two of the indictment, Johnson faces a minimum of 25 years and a maximum of 50 years’ imprisonment. The charge of possession of child pornography carries a minimum term of imprisonment of 10 years and a maximum of 20 years’ imprisonment. The higher minimum mandatory term of imprisonment for counts two and three is the result of Johnson’s prior conviction in 2009, for second degree sexual assault (State of Wisconsin v. Jermaine L. Johnson, Case No: 2009CF00966, Waukesha County)
This case was investigated by the Wisconsin Department of Justice, Division of Criminal Investigation, Internet Crimes Against Children Task Force. Assistant United States Attorney Penelope L. Coblentz has been assigned to prosecute this case.This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.Raleigh Man Sentenced for Commercial Robberies & Weapons OffensesRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today United States District Judge Louise W. Flanagan sentenced ANTONIO RASHAAD DOVINE, 23, to 146 years imprisonment followed by 5 years supervised release and ordered to pay $7,590.00 in restitution.
On November 16, 2012, DOVINE was found guilty by a jury after a week long trial in federal court in New Bern, North Carolina to one count of conspiracy to Rob a Business Engaged in Interstate Commerce, in violation of Title 18, United States Code, Section 1951; five counts of Aiding and Abetting the Robbery of a Business Engaged in Interstate Commerce and one count of Attempted Robbery of a Business Engaged in Interstate Commerce, in violation of Title 18, United States Code, Sections 1951 and 2; six counts of Aiding and Abetting the Use of a Firearm During a Crime of Violence, ie Robbery, in violation of Title 18, United States Code, Sections 924(c)(1)(A) and 2; and three counts of Felon in Possession of a Firearm in violation of Title 18, United State Code, Section 922(g)(1) and 924.
Evidence presented by the United States during the trial showed that on April 14, 2011, DOVINE; along with co-conspirators entered the Exxon Gas Station located at 1200 New Bern Avenue, Raleigh and robbed the business. During the robbery a clerk and customer were physically assaulted by the robbers. Later that same day, DOVINE, along with his co-conspirators robbed the McDonald’s restaurant located at 5016 Spring Forest Road, Raleigh. Next, on April 22, 2011, DOVINE, along with co-conspirators robbed the Hampton Inn located at 1001 Wake Towne Road, in Raleigh of US currency. Later that same evening, DOVINE and his co-conspirators, robbed the Courtyard Marriott located at 3908 Arrow Drive, in Raleigh of US currency and an employee’s laptop computer. On April 27, 2011 DOVINE, and his co-conspirators robbed the Wingate Inn located at 2610 Westinghouse Blvd, Raleigh, during which DOVINE struck the cashier in the face with the butt of a shotgun. Finally, on May 3, 2011, DOVINE and his co-conspirators attempted to rob the Family Fare BP gas station on 2120 New Bern Avenue in Raleigh but fled the scene before taking any currency. Firearms were used during all of these robberies.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, & Explosives-Raleigh, and the Raleigh Police Department. Assistant United States Attorneys Ethan A. Ontjes and Leslie K. Cooley prosecuted the case for the government.
Prosecutions Continue in Illegal Entry Cases Involving Those with Prior Criminal RecordsRead the Press Release
MINNEAPOLIS -- In the District of Minnesota, court action continued yesterday in two separate cases regarding foreign nationals who entered the United States illegally after being deported as criminals. In each case, the individual pleaded guilty to one count of illegal re-entry after removal.
In the first case, Adrian Vicente Gulliani-Gulliani, age 40, entered his plea before U.S. District Court Judge Richard H. Kyle in St. Paul. Gulliani-Gulliani was indicted on December 10, 2012.
In his plea agreement, Gulliani-Gulliani admitted that on November 14, 2012, he was found in the U.S. illegally after having been deported to Mexico. The deportation followed a 1998 Hennepin County conviction for first-degree sale of a controlled substance and second-degree possession of a controlled substance. According to a law enforcement affidavit filed in the current case, Gulliani-Gulliani was arrested in St. Paul by U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations (“ICE ERO”), who identified him as an illegal alien.If convicted, Gulliani-Gulliani faces a potential maximum penalty of 20 years in federal prison. Judge Kyle will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by ICE ERO, with cooperation from the St. Paul Police Department. It is being prosecuted by Assistant U.S. Attorney Manda M. Sertich.
In the second case, Jose Silva-Mercado, age 29, entered his plea before U.S. District Court Judge Donovan W. Frank in St. Paul. Silva-Mercado was indicted on December 10, 2012. In his plea agreement, Silva-Mercado admitted that on September 2, 2012, he was found in the U.S. illegally after having been deported to Mexico. The deportation followed a 2009 Mower County conviction for aggravated forgery.
On September 2, 2012, while Silva-Mercado was in the Stearns County Jail on a charge of driving under the influence, authorities identified him as an illegal alien with a criminal record. That identification was made though the ICE’s Criminal Alien Program (“CAP”). The goal of that program is to locate criminal aliens incarcerated in federal and state prisons, as well as in local jails, and prevent them from being released into society by having them federally prosecuted for illegally re-entry. In some instances, federal prosecution occurs only after the individual has been prosecuted for the recent underlying offense.
For his crime, Silva-Mercado faces a potential maximum penalty of 20 years in federal prison. Judge Frank will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by ICE ERO, with cooperation from the Stearns County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorney John E. Kokkinen.
Both men will remain in custody until their current federal cases are resolved. To learn more about the CAP, visit www.ice.gov/criminal-alien-program/Physician from Raton, N.M., Sentenced to Prison for Trafficking in Prescription DrugsRead the Press Release
ALBUQUERQUE – This morning a federal judge sentenced Gilbert Christopher Aragon, Jr., 48, to 18 months in prison followed by three years of supervised release for his prescription drug trafficking conviction. The sentence was announced by U.S. Attorney Kenneth J. Gonzales, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, and Special Agent in Charge Joseph M. Arabit of the El Paso Division of the DEA.
Aragon pled guilty on May 11, 2012, to a five-count criminal information charging him with the following offenses: (1) conspiracy to acquire prescription drugs by fraud, forgery, fraud, deception and subterfuge; (2) obtaining prescription drugs by fraud, forgery, deception and subterfuge; (3) unlawfully distributing prescription drugs without a legitimate medical purpose; (4) using the identity of another person to obtain prescription drugs by fraud, forgery, deception and subterfuge; and (5) corruptly persuading a witness to make false statements. Aragon admitted committing these offenses in Colfax County, N.M., between July 2009 and July 24, 2010. During this period, Aragon was a physician employed by the Family Practice Clinic in Raton, N.M.
In entering his guilty plea, Aragon admitted that, on July 9, 2009, he conspired with his wife, who has not been charged, fraudulently to obtain Hydrocodone, a prescription painkiller, by providing a prescription to a former patient, who filled the prescription and gave the Hydrocodone to Aragon and his wife. Aragon acknowledged that the former patient did not have a legitimate medical need for the Hydrocodone, and that he and his wife shared the Hydrocodone. Aragon also admitted that, on July 30, 2009, he fraudulently obtained Hydrocodone by having a mentally-challenged patient fill a prescription and give the Hydrocodone to him. That patient also had no legitimate medical need for Hydrocodone, which Aragon used for himself.
Aragon also admitted that, on April 17, 2010, he instructed a nurse at the Family Practice Clinic to prepare a prescription for Ativan, a prescription medication for anxiety, using the DEA registration/provider number of a health care provider at the Family Practice Clinic. Aragon acknowledged that his colleague did not give him permission to use her DEA registration/provider number and had no knowledge that he used her number for the purpose of fraudulently obtaining the Ativan.
Aragon further admitted that, between July 19, 2010 and July 24, 2010, after learning that he was the target of an investigation, he asked a nurse at the Family Practice Clinic to make false statements or omit material statements of fact to the police about his criminal activities. Aragon repeatedly asked the nurse to lie for the purpose of hindering the investigation into his criminal activities.
“The American people expect their medical care professionals to prescribe drugs responsibly. While the vast majority of physicians obey federal laws that control prescription drugs, one bad doctor can endanger himself as well as others in the community,” said FBI Special Agent in Charge, Carol K.O. Lee. “The FBI takes these violations very seriously, and we appreciated the opportunity to work with our partners at the Drug Enforcement Administration and the U.S. Attorney's Office on this case.”
“The abuse of prescription drugs, such as hydrocodone, remains a significant problem in our communities. DEA will continue to target those who illegally divert these pharmaceuticals, which can be as destructive and deadly as any illegal drug. It is particularly disturbing when the offender is a physician who betrays the trust of patients for whose health he is responsible. This conviction should serve as a reminder that anyone who diverts prescription drugs will be held accountable for the harm they cause,” said DEA Special Agent in Charge, Joseph M. Arabit.
The case was investigated by the Albuquerque Division of the FBI and the Albuquerque Field Office of the DEA, and was prosecuted by Assistant U.S. Attorney Samuel A. Hurtado.
Phoenix Man Sentenced to 33 Months in Federal Prison for Assaults on Grand Canyon RangersRead the Press Release
PHOENIX – On Feb. 4, 2013, Anthony Keith Swint, 43, of Phoenix, Ariz., was sentenced by U.S. District Judge Paul G. Rosenblatt to 33 months in federal prison. Swint was found guilty by a federal jury in Prescott, Ariz. on Sept. 28, 2012, of two counts of assault on a federal officer.
Swint was driving a tractor-trailer that got stuck near the South Rim of the Grand Canyon, near the Bright Angel Trial. Swint caused a disturbance with Xanterra employees who were trying to help him unlock his brakes and get back on the road. The employees called park rangers to assist them, and Swint’s anger escalated as he cursed at the rangers and ignored their orders for him to stay in the cab. As the rangers were trying to detain Swint, he kicked one ranger, causing the ranger to fall to the ground. Later, as several rangers were escorting Swint into a booking facility, he bit a ranger’s hand. Evidence at trial showed that Swint had a lengthy criminal history, which included a prior incident of assault in Michigan in 2004.
The investigation in this case was conducted by the National Park Service. The prosecution was handled by Jennifer E. Green and Tracy Van Buskirk, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-12-8080-PCT-PGR
RELEASE NUMBER: 2013-013_SwintFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Pharmacist Sentenced for Illegally Distributing OxycodoneRead the Press Release
Tampa, Florida - United States District Judge Virginia M. Hernandez Covington sentenced Ihab "Steve" Barsoum (42, Lutz) yesterday to 17 years in federal prison for illegally distributing Oxycodone. On August 21, 2012, a federal jury found Barsoum guilty of one count of conspiracy to distribute Oxycodone outside the usual course of professional practice and not for a legitimate medical purpose, and five counts of distributing Oxycodone outside the usual course of professional practice. In addition, Barsoum’s DEA registration number, his Florida pharmacy license, $40,000 in cash, and two BMWs were also forfeited.
According to testimony and evidence presented at trial, Barsoum was involved in a conspiracy, from at least 2007, where he dispensed hundreds of Oxycodone pills. The pills were dispensed to customers passing fraudulent prescriptions and sometimes to customers who had no prescriptions at all. Customers came to his pharmacy several times a week, did not show Barsoum any identification, and presented him with prescriptions in various different names at one time.
Starting in 2011, Barsoum sold thousands of pills to a confidential source working with the Drug Enforcement Administration (DEA). Barsoum instructed the confidential source on how to write the medical information on prescriptions that Barsoum knew were fraudulent. He also provided the confidential source with the name and DEA registration number of a real doctor to use for the fraudulent prescriptions. Evidence showed that Barsoum fraudulently documented his files to represent that he had verified, with that same doctor, that the prescriptions were valid and the medication could be dispensed.
In all, Barsoum is responsible for distributing more than 50,000 Oxycodone pills without a legitimate medical purpose and outside the usual course of professional practice.
This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Shauna S. Hale.
Pedro Fernandez-garcia Pleads Guilty to Illegal Re-entryRead the Press Release
PEDRO FERNANDEZ-GARCIA, age 40, a citizen of Mexico, pled guilty in federal court today before U. S. District Judge Sarah S. Vance to a one-count indictment charging him with illegal re-entry by a removed alien, announced U. S. Attorney Dana Boente.
According to court documents, FERNANDEZ admitted to being an alien who had previously been removed from the United States, was found in the United States, in Jefferson Parish, Louisiana on December 5, 2012, without having obtained consent from the Secretary of the Department of Homeland Security to reapply for admission to the United States.
The indictment charging FERNANDEZ with illegal re-entry also included a notice of sentencing enhancement based on his prior felony conviction. With the enhancement, the charge carries a maximum statutory penalty of ten years imprisonment, a fine of $250,000, and three years of supervised release following any term of imprisonment. Sentencing for the defendant is scheduled for May 15, 2013 at 9:30 A.M.The case was investigated by U. S. Immigration and Customs Enforcement (ICE) - Enforcement and Removal Operations. The case is being prosecuted by Special Assistant U. S. Attorney Robert Weir.
(Download Factual Basis )
Pay to Play: Former Madison County Treasurer Guilty of Structuring Property Tax Sales to Reward Campaign ContributorsRead the Press Release
The former treasurer of Madison County, Illinois, pled guilty in US District Court on February 5, 2013, to violating the Sherman Antitrust Act, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Fred Bathon, 58, was convicted of structuring Madison County property tax sales in a way that increased prices and rewarded campaign contributors.
The charges allege that at Illinois tax lien auctions, investors bid to purchase tax lien certificates issued against delinquent tax payers. Investors are supposed to compete to purchase these tax liens by bidding on the interest rate the property owner will be required to pay prior to redeeming the tax lien filed on the owner's property. The bid opens at no more than the statutory maximum of 18% and through a competitive bidding process can be driven as low as 0 percent. The bidder offering the least penalty percentage rate, i.e., the bidder who is willing to allow the owner to redeem his property for the smallest penalty, is allowed to purchase the tax lien. As such, competitive bidding benefits financially distressed homeowners by reducing the amount of money that they have to pay to save their home from foreclosure; however, that same system reduces the profit made by tax buyers. Tax buyers prefer to receive high interest rates, which correspond to higher profits.
It was revealed in Court today that for the tax sales conducted in 2005-2008, Bathon structured the tax sales in a way that eliminated competitive bidding and allowed the tax buyers to engage in price fixing by only bidding the statutory maximum interest rate of 18%. In addition to awarding properties at non-competitive interest rates, Bathon also used a seating chart to ensure that his largest campaign contributors were recognized by the auctioneer as the winning bidder.
By 2007 and 2008, the bid rigging and price fixing was so pervasive that distressed homeowners were charged the statutory maximum interest rate on nearly every property tax lien sold. During the tax auction occurring November 14-15, 2007, 2,549 out of 2,574 property tax liens were awarded to bidders for the statutory maximum interest rate of 18%, which represented 99.03% of the property tax liens auctioned. During the tax auction occurring November 13-14, 2008, 2,290 out of 2,364 property tax liens were awarded to bidders for the statutory maximum interest rate of 18%, which represented 96.86% of the property tax liens auctioned.
US Attorney Wigginton said, “This crime exploited financially-distressed homeowners who were at risk of losing their homes for the financial gain of political contributors. This type of pay-to-play politics is intolerable and will be aggressively prosecuted. It is time that those involved in politics learn that public office is a public trust that should never be manipulated to reward friends and supporters. I want to make it clear that not only is this particular investigation far from finished, but that I will continue to investigate violators wherever they are found. Note that today’s charge is a charge of conspiracy. By its very nature, conspiracy involves more than one person.”
A violation of the Sherman Antitrust Act is punishable by up to 10 years imprisonment and a $1,000,000 fine. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than the statutory maximum. However, the United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing. Sentencing has been scheduled for May 17, 2013.
Under Illinois law, Bathon will also forfeit his entire public pension as a result of his conviction. The Illinois Pension Code provides that “[n]one of the benefits herein provided for shall be paid to any person who is convicted of any felony relating to or arising out of or in connection with his or her service as a member.” This provision of Illinois law is oftentimes referred to as the “Ryan Rule,” following the Illinois Supreme Court’s decision in Ryan v. Bd. of Trustees of Gen. Assembly Ret. Sys., 236 Ill. 2d 315, 924 N.E.2d 970 (2010), which determined former Governor George Ryan forfeited all of his public pension benefits following his conviction on federal corruption charges. The state pension forfeiture provision reaches all public pension benefits, including those earned while serving in public positions with no connection or nexus to the federal conviction.
The investigation was conducted through the Metro East Public Corruption Task Force by agents from the Internal Revenue Service and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Steven D. Weinhoeft and Norman R. Smith.
Northern California Real Estate Investor Agrees to Plead Guilty to Bid Rigging at Public Foreclosure AuctionsRead the Press Release
A Northern California real estate investor has agreed to plead guilty for his role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Felony charges were filed today in the U.S. District Court for the Northern District of California in San Francisco against Gilbert Chung of Burlingame, Calif. Chung is the 27th individual to plead guilty or agree to plead guilty as a result of the department’s ongoing antitrust investigations into bid rigging and fraud at public real estate foreclosure auctions in Northern California.
According to court documents, Chung conspired with others not to bid against one another, but instead to designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in San Francisco and San Mateo counties, Calif. Chung was also charged with conspiring to use the mail to carry out schemes to fraudulently acquire title to selected properties sold at public auctions, to make and receive payoffs and to divert to co-conspirators money that would have otherwise gone to mortgage holders and others.
The department said Chung conspired with others to rig bids and commit mail fraud at public real estate foreclosure auctions in San Francisco and San Mateo counties beginning as early as January 2010 and continuing until about December 2010.
“The conspirators went to great lengths to suppress competition and prices at these foreclosure auctions,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The division will continue to vigorously enforce the antitrust laws and to prosecute those who violate them at the expense of distressed homeowners.”
The department said that the primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at San Francisco and San Mateo County public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner.
"Today’s charges are another example of our resolve to bring to justice those who engaged in fraudulent bid rigging and anticompetitive practices at foreclosure auctions,” said FBI Special Agent in Charge David J. Johnson of the San Francisco Field Office. “We continue our partnership with the Antitrust Division in aggressively pursuing individuals who participate in these criminal acts.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for the Sherman Act charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victim if either amount is greater than $1 million. A count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine. The government can also seek to forfeit the proceeds earned from participating in the conspiracy to commit mail fraud.
The charges today are the latest filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa and Alameda counties, Calif. These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Field Office at 415-436-6660, visit www.justice.gov/atr/contact/newcase.htm or call the FBI tip line at 415-553-7400.
Today’s charges are part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
**The fraud charge(s) referenced in this press release were
subsequently dismissed on the government’s motion.**
Newington Man Admits Stealing Firearms from Colebrook ResidenceRead the Press Release
February 5, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that MICHAEL KENNEDY, also known as “Chavo,” 25, of Newington, pleaded guilty today before United States Magistrate Judge Donna F. Martinez in Hartford to one count of possession of firearms by a previously convicted felon.
According to court documents and statements made in court, on May 9, 2011, KENNEDY and Edward N. Ortiz, also known as “Heavy,” of New Britain, entered a residence in Colebrook and stole 12 firearms. The investigation has revealed that the majority of the stolen firearms were later sold to others, including street-level drug dealers.
Prior to May 2011, KENNEDY had been convicted of multiple felony offenses, including possession of narcotics, robbery, larceny and violation of a protection order.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
KENNEDY is scheduled to be sentenced by United States District Judge Robert N. Chatigny on April 30, 2013, at which time KENNEDY faces a maximum term of imprisonment of 10 years and a fine of up to $250,00.
KENNEDY is currently detained in state custody on unrelated charges.
On September 27, 2012, Ortiz pleaded guilty to one count of conspiracy to steal firearms and possess stolen firearms, and one count of possession of firearms by a previously convicted felon. He awaits sentencing and is also detained.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Connecticut State Police and the New Britain Police Department. The case is being prosecuted by Assistant United States Attorney Jonathan S. Freimann.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Nedra Bell Charged with Defrauding Louisiana Road Home Program and Making False Statements to an Agency of the United StatesRead the Press Release
NEDRA BELL, age 40, a resident of New Orleans, Louisiana, was charged in a two-count bill of information filed yesterday for theft of government funds and making false statements to an agency of the United States, announced U. S. Attorney Dana J. Boente.
According to the Bill of Information, BELL applied for a Louisiana Road Home grant for property she was renting from her brother at the time of Hurricane Katrina. BELL applied for the grant on behalf of her brother, falsely stating that he was residing in the property at the time of Hurricane Katrina. As a result of her false statements in her application, BELL fraudulently received approximately $54,372 from the United States Department of Housing and Urban Development (“HUD”), an agency and department of the United States.
BELL is also charged with one count of making false statements to a federal agency on a re-certification application and HUD Income Questionnaire to the Housing Authority of New Orleans (“HANO”) for HUD rental subsidized housing under its Section 8 program. BELL denied that she received self-employment income or owned property, when in truth and in fact, she received income from her business as a hair stylist and owned property.
If convicted, BELL faces a maximum term of imprisonment of fifteen years, a $250,000 fine, restitution to the HUD, three (3) years of supervised release following any term of imprisonment, and a $200 special assessment.
U. S. Attorney Boente reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the U.S. Department of Housing and Urban Development, Office of Inspector General. The case is being prosecuted by Assistant U. S. Attorney Julia K. Evans.(Download Bill of Information )
Mother and Son Indicted on Heroin and Drug House ChargesRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Deborah A. Perkins and Douglas W. Oliver have been indicted by a grand jury for Conspiracy to Distribute Heroin, Possession with Intent to Distribute Heroin, and Maintaining Drug-Involved Premises. The indictment also seeks the forfeiture of the residence at 20 Kassing Drive in Fairview Heights, IL, which Perkins owns.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
U.S. Attorney Wigginton stated, “My Office is determined to continue its anti-heroin initiative with every legal means we have. That includes, when appropriate, seeking the forfeiture of real property which has been used to facilitate heroin trafficking.”
Perkins, 65, and her son, Oliver, 46, were arrested on January 21, 2013, following the filing of a criminal complaint. After a bond hearing on January 25, 2013, Perkins and Oliver were ordered detained (held without bond) pending trial. A trial date has not yet been set.
According to the indictment filed on February 5, 2013, Perkins and Oliver are alleged to have conspired to distribute heroin between 2010, and 2013. The indictment alleges that the two distributed “in excess of one kilogram of heroin” during that time period. (A “kilogram” is equal to 2.2 pounds.) The indictment further alleges that Perkins and Oliver possessed heroin for distribution on January 21, 2013, the day of their arrest. Finally, the indictment alleges that Perkins and Oliver maintained a drug house at 20 Kassing Drive, Fairview Heights, for the purpose of distributing and using heroin between 2004, and 2013.
Perkins and Oliver also face pending state charges for Concealment of a Death. Those charges involve the death of Jessica M. Williams in the spring of 2012. Police discovered Williams’ body in Washington Park, IL several weeks after her death.
The investigation which resulted in the arrest and indictment of Perkins and Oliver was conducted by Metropolitan Enforcement Group of Southwestern Illinois (MEGSI), the Drug Enforcement Administration (DEA) and the Fairview Heights, IL Police Department. The case is assigned to Assistant United States Attorney Robert L. Garrison for trial.
Maryland Man Convicted for Armed Robberies of Apple Delivery DriversRead the Press Release
ALEXANDRIA, Va. – Khalil Kenyon Blackman, 31, of District Heights, Md. was convicted yesterday of conspiring to commit three armed robberies of truck drivers who were delivering Apple products to area stores.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Ken Cuccinelli, II, Attorney General of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Lt. Colonel James A. Morris, Acting Fairfax County Chief of Police, made the announcement after a bench trial before United States District Judge Leonie M. Brinkema.
Blackman was convicted of conspiracy to commit robbery, which carries a maximum penalty of 20 years, and brandishing a firearm, which carries a mandatory minimum of seven years and a maximum penalty of life imprisonment. Sentencing is scheduled for April 26, 2013.
According to court records and evidence at trial, Blackman and others conspired to carry out three armed robberies of delivery truck drivers hauling Apple products. On Feb. 11, 2011, Blackman and his co-conspirators robbed a delivery truck driver in Prince George’s County, Md. Thereafter, Blackman took the majority of the products and sold them to another person and then distributed the proceeds among his conspirators. Blackman also conspired with others to carry out two other robberies – on June 15, 2011 in Fairfax County, Va. and on October 30, 2011 in Prince George’s County, Md. – and sold the stolen products from these robberies to others for the benefit of the conspirators. The total loss to Apple was more than $130,000.
The investigation was conducted by FBI’s Washington Field Office and the Fairfax County Police Department. Virginia Assistant Attorney General and Special Assistant United States Attorney Marc J. Birnbaum and Assistant United States Attorney Adam B. Schwartz 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.Man Who Robbed New Haven Bank Sentenced to Nine Years in Federal PrisonRead the Press Release
February 5, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that DOUGLAS HUTCHINGS, 41, of New Haven, was sentenced today by United States District Judge Stefan R. Underhill in Bridgeport to 108 months of imprisonment, followed by three years of supervised release, for bank robbery.
According to court documents and statements made in court, on March 8, 2012, HUTCHINGS entered the TD Bank located at 466 Foxon Boulevard in New Haven, approached a teller and handed her a note stating “Please just the money No gets hurt.”
After the teller provided HUTCHINGS with $7,444 in U.S. currency, HUTCHINGS ran out of the bank and entered the driver’s side of a minivan. He then drove away at a high rate of speed and engaged New Haven Police officers in a chase that ended when the minivan crashed in the vicinity of Hallock Street and Colombus Avenue in New Haven. HUTCHINGS was apprehended a short distance from the accident scene.
HUTCHINGS has been detained since his arrest on March 8, 2012. On August 6, 2012, he pleaded guilty to one count of bank robbery.
HUTCHINGS’s extensive criminal history includes convictions for manslaughter, assault, larceny and arson.
This matter was investigated by the Federal Bureau of Investigation and the New Haven Police Department. The case was prosecuted by Assistant United States Attorney Anthony E. Kaplan.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
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[email protected]Man Sentenced in Federal Court to Ten Years imprisonment for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney James L. Santelle announced today that on January 31, 2013, Charles W. Adams (age:46), formerly of Spencer, Indiana, was sentenced in federal district court to 120 months imprisonment - the maximum sentence - for the crime of Failure to Register as a Sex Offender. Chief Judge William C. Griesbach also ordered that Adams serve a lifetime of supervised release following his release from federal prison and continue to register as a sex offender.
Adams was indicted in federal court for Failure to Register as a Sex Offender following his December 1, 2010 arrest in Winnebago County on sexual assault charges. Adams has entered a not guilty plea to the Winnebago County state sexual assault charge, case number 10CF754, and has a jury trial scheduled for March 25, 2013. Adams was also charged in Winnebago County case number 11CF563 with two felony counts of Capturing an Image of Nudity Without Consent. He proceeded to trial on the latter two offenses, was found guilty, and will be sentenced on February 28, 2013.
In filings with the federal court, the government argued the pending sexual assault charge served to enhance the seriousness of Adams’ failure to register as a sex offender offense, as did his prior convictions for sexual offenses. Chief Judge Griesbach agreed and ultimately sentenced Adams to the statutory maximum sentence of 10 years imprisonment. The failure to register as a sex offender statute requires qualifying sex offenders to advise law enforcement of any location where they reside, work, or attend school. The indictment filed against Adams alleged that between October 2010 and the time of his arrest in December 2010, he traveled interstate and knowingly failed to register and update his registration.
The investigation was conducted by the United States Marshal Service with the assistance of the Neenah Police Department The case was prosecuted by Assistant United States Attorney William J. Roach.
# # # #Lexington Business Owner Pleads Gulty to Filing False Tax ReturnRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Lexington, Mo., business owner has pleaded guilty in federal court to filing a false income tax return.
Christopher Huffman, 49, of Lexington, pleaded guilty before U.S. District Judge Dean Whipple on Monday, Feb. 4, 2013, to the charge contained in an April 3, 2012 federal indictment.
Huffman is the owner of IG Construction, an asphalt and tree-trimming business formerly known as Interstate General Contractors. By pleading guilty today, Huffman admitted that he engaged in a scheme to falsely under-report the gross receipts for his business on his tax returns for tax years 2006-2008 in order to significantly reduce his income tax liability.
Huffman claimed business expenses almost equal to his gross receipts, so that his reported income was low enough to claim the earned income tax credit. The earned income tax credit is a refundable tax credit intended for workers earning a low to moderate income, which results in a tax refund for those whose credit exceeds the amount of taxes owed.
For tax years 2006 - 2008, while claiming he earned less than $20,000 per year, Huffman lived in and owned a house which he valued at $1.6 million and which had approximately 4,000 square feet, a 13-car garage, an in-ground pool/lake, and a volleyball court. Huffman bought a 2007 Cadillac Escalade, two classic Chevrolet Camaros, and two Harley Davidson motorcycles during this time.
In 2007, Huffman claimed in a loan application that he had $10,700 in cash and received a salary of $65,000, and listed his net worth at $2.4 million. In 2008, Huffman claimed in another loan application that he received a salary of $100,000 and that his net worth was almost $3 million.
Huffman admitted that, as a result of his fraud scheme, he caused a tax loss to the government of at least $300,000. However, the government intends to present evidence at Huffman's sentencing hearing that the tax loss actually exceeds $400,000.
Under federal statutes, Huffman is subject to a sentence of up to three years in federal prison without parole, plus a fine up to $100,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Kate Mahoney. It was investigated by IRS-Criminal Investigation.
Lewiston Man Pleads Guilty to Burglary in Federal CourtRead the Press Release
COEUR D'ALENE – Stefan Hiebert, 20, of Lewiston, Idaho, pleaded guilty today in United States District Court in Coeur d’Alene to burglary, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, on two separate occasions in March 2012, Hiebert, an enrolled member of the Nez Perce Tribe, burglarized a barn located on the Nez Perce Indian Reservation, with the intent to steal elk and deer antlers and sheds he knew to be inside. Hiebert stole approximately 30 antlers and sheds with an estimated value of $10,000.
The federal charge of burglary carries a mandatory minimum sentence of at least one year up to a maximum of ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for April 29, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene.
The case was investigated by the Federal Bureau of Investigation.
Justice Department Seeks to Shut Down<br /> South Florida Tax Return PreparersRead the Press Release
The Justice Department announced today that it has sued two Miami tax return preparers, seeking to bar them from preparing federal tax returns for others. The civil injunction suit alleges that Marlen Monzon, her son Yanko Rodriguez, and their Miami business, Tri Stars Multiservices Corporation, claim bogus deductions and credits on customers’ federal tax returns.
Monzon and Rodriguez allegedly included fabricated claims for business expenses on customers’ tax returns even though the customers have no business. According to the complaint, these fabricated expenses offset the customer’s wage income and improperly lower the customer’s reported taxable income. This generates (or increases) a refund, and often qualifies customers for credits to which they are not entitled. The complaint alleges that the Internal Revenue Service has examined 498 tax returns for tax years 2008 through 2011, and found that nearly every return claimed that the customer operated a nonexistent business and reported a business loss. This allegedly reduced the customers’ reported tax liability by an average of $7,031 per return, for a total of $3,494,336 in lost revenue.
According to the complaint, in 2008, the IRS assessed penalties against Monzon in the amount of $43,000 based on her preparation of tax returns claiming bogus Fuel Tax Credits. The complaint alleges that, rather than claiming bogus Fuel Tax Credits, Monzon now simply reports bogus gasoline expenses related to nonexistent businesses on her customers’ tax returns.
In the past 10 years the Justice Department’s Tax Division has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters. Information about these cases is available on the Justice Department Website .
Related Materials:
Rodriguez Complaint
Indictment Charges Former Prison Guard with SmugglingRead the Press Release
PHILADELPHIA - Dion Reid, 35, of Philadelphia, PA, was charged today by indictment with two counts of honest services fraud and two counts of possession with intent to distribute a controlled substance, announced United States Attorney Zane David Memeger. The indictment alleges that Reid, a former corrections officers employed by the Philadelphia Prison System, conspired and agreed with a prisoner inside the prison to smuggle in marijuana, Xanax pills, tobacco, and cellular telephones.
If convicted the defendant faces a maximum possible sentence of 50 years imprisonment, three years supervised release, a $1 million fine, and a $400 special assessment.
The case was investigated by the Federal Bureau of Investigation, the Philadelphia Police Department, and the City Office of Inspector General. It is being prosecuted by Assistant United States Attorney David L. Axelrod.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Hunterdon County, N.J., Landscaper Admits Under-Reporting $1.38M in IncomeRead the Press Release
NEWARK, N.J. – A Hunterdon County man who owns and operates P.H. Robinson Design and Landscaping Company Inc. (“P.H. Design”) today admitted under-reporting $1.38 million in money paid to his business by customers, U.S. Attorney Paul J. Fishman announced.
Paul Robinson, 45, of High Bridge, N.J., pleaded guilty before U.S. District Judge Katharine S. Hayden to an Information charging him with one count of filing a false tax return.
According to documents filed in this case and statements made in court:
Robinson owned and operated P.H. Design, a landscaping business located in Scotch Plains, N.J. Despite maintaining several different bank accounts into which he deposited P.H. Design customer monies, Robinson only provided his accountant with records for one bank account. Robinson caused false corporate returns to be filed for P.H. Design for 2005, 2006, 2007, and 2008, and caused false personal returns to be filed for 2006, 2007, and 2008. Under terms of the plea agreement, Robinson admitted to causing tax losses of $200,000 and $400,000.
On the false filing count, Robinson faces a maximum potential penalty of three years in prison and a fine of $100,000. Sentencing is scheduled for May 15, 2013.
Fishman credited special agents with IRS - Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Joseph Mack of the Healthcare and Government Fraud Unit in Newark.
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Defense counsel: John P. McDonald Esq., Somerville, N.J.
Robinson Information
Grand Forks Man Sentenced for Transporting Two Juveniles for the Purpose of Engaging in Sexual ActivityRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on Feb. 5, 2013, Gregory Joseph Frohlich of Grand Forks, N.D., was sentenced before U.S. District Judge Ralph R. Erickson on a charge of transportation of minors.
Judge Erickson sentenced Frohlich to 14 years’ imprisonment to be followed by a lifetime of supervised release. Frohlich was ordered to pay a $100 special assessment to the Crime Victim's Fund. Restitution will be determined at a later date. Frohlich was also ordered to register as a sex offender.
Frohlich, 56, pleaded guilty on Oct. 5. 2012, to transporting two mentally disabled girls from Grand Forks, N.D. to Thief River Falls, Minn., for the purpose of engaging in sexual activity with the juveniles. Investigation by the Grand Forks Police Department revealed that Frohlich engaged in illegal sexual conduct with the girls for almost two years, beginning when the girls were just 13 years of age.
The case was investigated by the Department of Homeland Security-Homeland Security Investigations and the Grand Forks Police Department.
Assistant U.S. Attorney Jennifer Klemetsrud Puhl prosecuted the case.This case was brought as a 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 (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims.
For more information about Project Safe Childhood, visit www.projectsafechildhood.gov.Goodwin Charges Former Chase Bank Executive with EmbezzlementRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin charged a former Charleston-based Chase Bank executive yesterday with embezzlement by a bank employee. According to a court document filed on Feb. 4, Mark McCoy, 46, of Charleston, W.Va., was charged with embezzling thousands of dollars from Chase Bank.
McCoy was employed as the vice president of private client banking services at the bank’s Charleston branch from September 2008 until June 2012. According to an information filed yesterday, during his employment at Chase Bank, McCoy embezzled thousands of dollars of funds belonging to Chase Bank.
McCoy faces up to 30 years in prison and a fine of up to $1 million.
The investigation was conducted by the U.S. Secret Service. Assistant United States Attorney Meredith George Thomas is in charge of the prosecution.
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