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22 March 2013
Former Corrections Officer Sentenced to Home Detention on Bribery ChargeContract Employee Took Cash to Smuggle Items into D.C. Correctional Treatment FacilityRead the Press Release
WASHINGTON – Daishawn Goodson, a former corrections officer, was sentenced today to eight months home detention for accepting money to bring contraband into a District of Columbia correctional facility, announced U.S. Attorney Ronald C. Machen Jr. and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Goodson, 26, pled guilty in December 2012 in the U.S. District Court for the District of Columbia. She was sentenced by the Honorable Beryl A. Howell. She also received two years of probation. In addition, Goodson has agreed to a $1,000 forfeiture judgment.
According to the government’s evidence, Goodson was employed by the Corrections Corporation of America (CCA) as a corrections officer at the District’s Correctional Treatment Facility. CCA, a private company, has a contract to provide services to the D.C. Jail. In January 2012, Goodson made a telephone call to a person who she believed was an associate of an inmate. In fact, that person was an undercover agent with the FBI. During the call, Goodson agreed to smuggle a computer thumb drive to an inmate at the corrections facility in return for cash.
Goodson met the undercover agent on Jan. 10, 2012 near the Eastern Market. Goodson agreed to bring the thumb drive and $100 to the inmate in return for $400. The undercover agent handed Goodson the thumb drive and $500. On Jan. 18, 2012, Goodson and the undercover agent had another meeting near Eastern Market and discussed the fact that the first attempt to smuggle the thumb drive and currency into the facility went well. Goodson agreed to smuggle another computer thumb drive and $100 into the facility in return for $400. Once again, the undercover agent gave Goodson a thumb drive and money. Goodson left the meeting and was subsequently arrested.
In announcing the sentence, U.S. Attorney Machen and Assistant Director in Charge Parlave commended the work of the agents who investigated the case from the FBI’s Washington Field Office. They also expressed appreciation for the assistance provided by the District of Columbia Department of Corrections Office of Investigative Services. Finally, they acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Nicole Wattelet and Assistant U.S. Attorney Seth B. Waxman, who prosecuted the case.
13-105Former Big Spring, Texas, Man Pleads Guilty to Federal Child Pornography OffenseRead the Press Release
LUBBOCK, Texas — Christopher Aubrey Harlan, 27, formerly of Big Spring, Texas, appeared in federal court in Lubbock today and pleaded guilty, before U.S. District Judge Sam R. Cummings, to one count of receiving child pornography. Harlan, who is on bond, faces a statutory penalty of not less than five years, or more than 20 years, in federal prison, up to a $250,000 fine, and up to a lifetime of supervised release. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Harlan used his computer, as well as for a brief time, his roommate’s computer, to access child pornography on various websites. He used those computers, as well as his cellphone, to send and receive numerous images of child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation is being conducted by U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Big Spring Police Department. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Former Air Force Sergeant Sentenced to Eighty Months in Prison for Federal Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Late yesterday afternoon a federal judge sentenced Christopher Garcia, 34, of Clovis, N.M., to 80 months in prison followed by a lifetime of supervised release for his child pornography conviction. Garcia will be required to register as a sex offender after he completes his prison sentence. Garcia’s sentence was announced by U.S. Attorney Kenneth J. Gonzales, Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) in El Paso, Texas, and Curry County Sheriff Matt Murray.
Garcia was indicted in July 2012, and charged with three counts of receipt of child pornography, and three counts of possession of child pornography. According to the indictment, Garcia received and possessed child pornography between Dec. 12, 2011 and Jan. 17, 2012, in Curry County, N.M. During that period, Garcia was a sergeant with the U.S. Air Force assigned to the 16th Special Operations Squadron at Cannon Air Force Base.
On Nov. 16, 2012, Garcia pled guilty to Count 2 of the indictment charging him with receipt of a visual depiction of a minor engaged in sexually explicit conduct. During his plea hearing, Garcia acknowledged that he was charged as the result of an undercover investigation that began in Jan. 2012, and targeted individuals who possess, receive and distribute child pornography. As a result of the investigation, a search warrant to seize computers and computer related media was executed at Garcia’s residence on Jan. 17, 2012. While the search warrant was executed, Garcia voluntarily participated in a recorded interview during which he admitted that he had been downloading and viewing child pornography for approximately two years. Garcia also acknowledged that a forensic examination of his computers and computerrelated media disclosed thousands of images and videos consistent with child pornography.
This case was investigated by HSI, the Curry County Sheriff’s Office and the New Mexico Regional Computer Forensic Laboratory, and was prosecuted by Assistant U.S. Attorney Charlyn E. Rees. It was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Florida Truck Driver Convicted in Alien Transportation ConspiracyRead the Press Release
LAREDO, Texas – Jesus Lopez Cabrera, of Haileah, Fla., has been convicted by a federal jury verdict after a three-day trial of conspiracy to transport and the transportation of undocumented persons, United States Attorney Kenneth Magidson announced today. The verdict was announced earlier today in U.S. District Judge Diana Saldaña’s court after less than two hours of deliberation.
During the trial, the jury heard testimony that Jesus Lopez Cabrera worked for Tiger Express Services Inc. This was a small trucking company with five to six drivers that moved sodas, crates, tomatoes, tiles and crates as well as human beings like cargo. Drivers were caught with undocumented persons in the back of their vehicles on July 27, 2012; Oct. 11, 2012; Oct. 27, 2012; and Nov. 9, 2012, at various checkpoints in South Texas. The tractors and trailers used in these events were cross-referenced to other drivers in the company.
In particular, Cabrera, was caught at the I-35 Border Patrol Checkpoint north of Laredo with 14 undocumented persons in the back of his tractor trailer. These persons were packed like cargo in a small space between wooden crates with little room to move. This tractor trailer had a Tiger Express Services Inc. logo on it and was registered to Cabrera.
Evidence also proved Cabrera purchased a trailer in McAllen on Oct. 3, 2012.This trailer was used to haul 13undocumented persons on Nov. 9, 2012. These persons were packed in small spaces amongst tomatoes. Two of these persons had also received a ride in the back of a Tiger Express trailer driven on Oct. 27, 2012.
During the trial, the jury heard from the people transported by Cabrera and others. They described the same pattern of operation for this organization. They were crossed into the United States, housed for a couple of days and then taken to the brush along an isolated road near McAllen and were told to wait for a trailer. When a trailer arrived, they ran into the back. They never saw the drivers.
Cabrera is expected to be sentenced in the late Spring of 2013, at which time he will face up to 10 years imprisonment and a maximum fine of $250,000. Garcia has been in custody since March 18, 2012.
The matter was investigated by Homeland Security Investigations in conjunction with the U.S. Border Patrol. Assistant United States Attorneys Elizabeth R. Rabe and James Bruce Hepburn prosecuted the case.
Felon Indicted for Conspiring to Distribute Methamphetamine, Possessing A FirearmRead the Press Release
MINNEAPOLIS—Earlier this week in federal court, a 25-year-old man was indicted for conspiring to distribute more than 500 grams of the highly addictive and dangerous drug methamphetamine between 2009 and April 2011. On March 19, 2013, Jose Alfredo Varela-Meraz was charged with one count of conspiracy to distribute 500 or more grams of methamphetamine, one count of possession with intent to distribute 500 or more grams of methamphetamine, one count of using, carrying and possessing a firearm during and in relation to a drug-trafficking crime, one count of being a felon in possession of a firearm, and one count of illegal re-entry after removal.
The indictment alleges that from the fall of 2009 through April 20, 2011, Varela-Meraz conspired with others to distribute 500 or more grams of methamphetamine. It also alleges that on March 25, 2010, Varela-Meraz possessed with intent to distribute 500 or more grams of methamphetamine, and possessed a 9-millimeter handgun. In addition, the indictment alleges that on February 28, 2013, Varela-Meraz was found in the U.S. illegally after having been previously deported to Mexico in 2012, following a New Mexico conviction for re-entry of a removed alien. According to a law enforcement affidavit filed in the case, on March 25, 2010, Varela-Meraz was observed meeting with another suspect under surveillance in a parked vehicle at a parking lot in Roseville. The vehicle was stopped in Minneapolis, and officers seized approximately 447 grams of methamphetamine under the carpeting by the front passenger seat where Varela-Meraz was sitting. In a subsequent search, police found 678 additional grams of methamphetamine and a nine-millimeter handgun hidden under the vehicle’s center console.
Because he is a felon, Varela-Meraz is prohibited under federal law from possessing firearms or ammunition at any time. His prior Arizona convictions include possession and use of drug paraphernalia.
If convicted, Varela-Meraz faces a potential maximum penalty of life in prison on the conspiracy, possession with intent and carrying a firearm counts; and ten years on both the felon in possession and illegal re-entry counts. All sentences will be determined by a federal district court judge.
This case is the result of an investigation by the United States Drug Enforcement Administration, the Ramsey County Sheriff’s Office, the Hennepin County Sheriff’s Office, the Minnesota State Patrol, and the police departments of Maplewood, Minneapolis and Roseville. It is being prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.
To learn more about the harmful effects of methamphetamine, visit http://www.justice.gov/dea/pr/multimedia-library/publications/drug_of_abuse.pdf#page=48.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.
FCI-Greenville Inmate Sentenced for Possession of Contraband in A Federal PrisonRead the Press Release
Fernando Grijalva-Marquez, 30, an inmate at the Federal Correctional Institution in Greenville, Illinois, was sentenced in federal district court on March 22, 2013, to a total of 27 months in prison, the sentence to run consecutive (in addition) to his current sentence, on an indictment charging him with possession of contraband by a federal inmate, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Grijalva-Marquez was also ordered to serve a 3 year term of supervised release, fined $100, and ordered to pay a $100 special assessment. Grijalva-Marquez is to be deported when he concludes his term of imprisonment, therefore his term of supervised release will not become active unless he returns to the United States illegally. Grijalva-Marquez pled guilty to the offense on December 17, 2012, and has been held without bond since his arraignment.
The violation occurred on September 5, 2012, when, during a pat down search of his person, correctional officers discovered a 6 ½" long, black, sharpened homemade knife, an item considered contraband in a federal prison or federal correctional institution, in his boot. Grijalva-Marquez admitted to always carrying the weapon.
The case was investigated by the Bureau of Prison’s Special Investigative Section and prosecuted by Assistant United States Attorney Angela Scott.
District Woman Sentenced to One Year Incarceration for Courthouse Attack of Deputy U.S. Marshal-Defendant Threw Repeated Punches, Pushed Deputy into A Wall-Read the Press Release
WASHINGTON - Janell Shaw, also known as Janelle Kara Shaw, 22, of Washington, D.C., was sentenced today to a year and a day in prison for assaulting a Deputy United States Marshal, announced U.S. Attorney Ronald C. Machen Jr. and Michael Hughes, U.S. Marshal for the Superior Court of the District of Columbia.
Shaw pled guilty in December 2012 in the U.S. District Court for the District of Columbia. She was sentenced by the Honorable Rudolph Contreras. She was also sentenced to three years of supervised release following her incarceration.
According to the government’s evidence, on Oct. 16, 2012, a judge in the Superior Court of the District of Columbia received testimony that Shaw had tested positive for controlled substances while Shaw was on release in a pending misdemeanor assault case. After hearing the violation report, the judge ordered that Shaw be taken into custody by the courtroom’s deputy marshal. The deputy marshal instructed Shaw to place her hands behind her back. Shaw refused to move from the defendant’s table and then pushed the deputy marshal.
The deputy marshal then brought Shaw into the area between the courtroom and the cell block area, but Shaw continued to resist cuffing. As they proceeded to the cellblock area, Shaw pulled away and struck the deputy marshal with a closed fist multiple times about the head and face. Other deputy marshals arrived and helped to secure the defendant. As a result of this incident, there was significant damage caused to the cellblock area and the deputy sustained injuries requiring treatment for abrasions to her face, head and for a neck sprain.
In announcing the sentence, U.S. Attorney Machen and U.S. Marshal Hughes commended the actions of all the Deputy U.S. Marshals who work to keep all of the judges, court personnel, attorneys, and visitors safe while attending court proceedings. They also commended the efforts of Assistant U.S. Attorney Emory V. Cole, who investigated and prosecuted the case.
13-104David Levy and Donna Levy Found Guilty in Manhattan Federal Court of Orchestrating “Pump and Dump” Stock Fraud SchemesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that DAVID LEVY and DONNA LEVY were found guilty yesterday on all counts against them in an Indictment charging them with orchestrating so-called “pump and dump” stock fraud schemes that employ the Internet and social networking sites, among other tools, to manipulate the price of penny stocks. DAVID LEVY also was found guilty of participating in an international money laundering scheme. The defendants were convicted after a three-week jury trial before U.S. District Judge Paul A. Crotty.
According to the evidence introduced at trial, other proceedings in this case, and documents previously filed in Manhattan federal court:
The Start-Up Company Stock Fraud Scheme
DAVID LEVY and DONNA LEVY were convicted of conspiracy to commit wire fraud and securities fraud, and of committing securities fraud, in connection with their efforts to orchestrate multi-year pump and dump schemes involving two companies that they helped take public: Cardiac Network, Inc., which has traded under symbol “CNWI,” and Banneker, Inc., which has traded under symbol “BANI.” The scheme worked as follows: DAVID LEVY and DONNA LEVY offered to help start-up companies obtain financing, take the start-up companies public, and coordinate marketing and investor relations for the companies, in exchange for company shares.
Once the companies had gone public, DONNA LEVY put out press releases on behalf of the target companies, and she worked with DAVID LEVY to secretly fund and distribute misleading third-party “buy” recommendations concerning the targeted companies.
This misleading promotional campaign, along with other manipulative conduct, caused demand for stock in the targeted companies, and the price of the stock to rise. DAVID LEVY, DONNA LEVY, and their co-conspirators took advantage of the “pumped-up” stock trading volume and prices to “dump” their shares into the market until the misleading promotional campaign had run out of steam. They would repeat the scheme multiple times until the target companies’ shares were essentially valueless, thereby harming company founders and executives, as well as innocent investors who bought in reliance on the misleading promotional campaigns they orchestrated.
DAVID LEVY was also convicted of securities fraud in connection with his efforts to orchestrate a multi-year pump and dump scheme involving a third company that he helped take public: Greenway Design Group, Inc., which has traded under symbol “GDGI.” Evidence presented at trial demonstrated that DAVID LEVY awarded himself secret shares in GDGI in the name of a Panamanian shell company maintained by a money launderer.
The International Money Laundering Scheme
Additionally, DAVID LEVY was convicted of a money laundering conspiracy for his efforts to conceal more than $2.3 million in proceeds from the fraudulent schemes in Panamanian shell company bank accounts maintained at a bank in Panama. In connection with the scheme, DAVID LEVY wire transferred $150,000 in fraud proceeds to a Panamanian shell company bank account through a bank account in New York. He carried over to Panama $2 million in cashiers’ checks, representing proceeds from stock fraud, and deposited it into the shell company bank account.
The Manipulation-For-Hire Scheme
In addition to being convicted of the charges above, DONNA LEVY also was convicted of two counts arising from her participation in a manipulation-for-hire scheme. As demonstrated at trial, DONNA LEVY was paid by others who were interested in dumping large holdings of penny stocks into the market, or through intermediaries, to post or fund misleading stock “buy” recommendations on purportedly independent stock analysis websites and email newsletters. Participants in the scheme would also engage in manipulative trading activity concerning stocks that they were paid to help manipulate. They did so knowing that their conduct would help pump up the prices of the stocks they were manipulating so that they could sell and make quick profits from unsuspecting investors who would be harmed once the secretly-funded manipulative campaign ended and the stock crashed.
DONNA LEVY was convicted of conspiracy to commit wire fraud and securities fraud, and of committing securities fraud, in connection with her efforts to orchestrate a pump and dump scheme as a manipulator for hire in connection with a purported company called Emerging World Pharma, Inc., which has traded under symbol “EWPI.”
DAVID LEVY, 60, of Fort Lauderdale, Florida, faces a maximum sentence of 85 years in prison, and a fine of over $5,000,000, in addition to forfeiture of the proceeds of the crimes. DONNA LEVY, 57, of Fort Lauderdale, Florida, faces a maximum sentence of 70 years in prison, and a fine of over $5,000,000, in addition to forfeiture of the proceeds of the crimes. A sentencing date has not yet been set for either defendant.
Nine additional defendants have already pled guilty to charges arising out of the conduct alleged in the Indictment, and three of the nine have been sentenced. The relevant plea dates and, where applicable, the sentences imposed are set forth in the attached chart.
This case originated and the schemes were uncovered as part of the Government’s long-term investigation into criminal conduct at the Port of New York-New Jersey. Mr. Bharara thanked the Internal Revenue Service-Criminal Investigations’ New Jersey office, as well as the other participants in the High Intensity Drug Trafficking Area Task Force, which includes the Drug Enforcement Administration and Immigration and Customs Enforcement’s Homeland Security Investigations’ New Jersey Offices, for their assistance with the investigation. Mr. Bharara also thanked the Securities and Exchange Commission and the Financial Industry Regulatory Authority for supporting the investigation, which is ongoing.
The case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Howard S. Master and Carrie H. Cohen are in charge of the prosecutions, and Andrew D. Goldstein is responsible for the asset forfeiture aspects of the case.
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U.S. v. David Levy, et al. S5 Indictment
DME Owner Arrested in 21-Count Health Care Fraud IndictmentRead the Press Release
HOUSTON – Andrea Michelle Tellison, 46, has been arrested following the return of a 21-count indictment charging her with health care fraud and aggravated identity theft, United States Attorney Kenneth Magidson announced today.
The indictment was returned under seal Wednesday, March 20, 2013, and unsealed today upon her arrest. She made her initial appearance this morning before U.S. Magistrate Judge Mary Milloy, at which time she was released on bond.
Tellison, of Houston, is one of the owners of Texas Durable Medical Company, located in Houston, according to the indictment. She is alleged to have submitted false and fraudulent claims to Medicare and Medicaid for durable medical equipment (DME), including enteral nutrition feeding kits that were not provided to Medicare beneficiaries, not ordered by physicians, and not medically necessary. Enteral nutrition is provided by feeding tubes and accessories rather than consumed orally.
According to the indictment, Tellison also falsely signed certain Medicare forms stating there was documentation in patient medical records detailing the need for enteral nutrition when there was not. The indictment also alleges Tellison delivered formula to Medicare beneficiaries that expressly stated “not for tube feeding.” Additionally, Tellison allegedly failed to purchase sufficient inventory to deliver all the enteral nutrition and supplies she billed to Medicare and Medicaid. The indictment indicates that between March 29, 2008, and Nov. 30, 2009, Tellison submitted approximately $1,480,511.31 worth of claims for enteral nutrition and supplies and received approximately $786,222.11 as payment for those claims.
If convicted, she faces up to 10 years in prison and a possible $250,000 fine for each conviction of health care fraud. Aggravated identity theft further carries a mandatory two-year prison term that must be served consecutively to any sentence for the underlying offense and up to a $250,000 fine, upon conviction.
The investigation into Tellison was the result of a joint investigation conducted by agents from the FBI, Railroad Retirement Board - Office of the Inspector General, Department of Health and Human Service – Office of Inspector General and the Texas Attorney General Office – Medicare Fraud Control Unit. Assistant United States Attorney Julie Redlinger is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Conviction of Former Mississippi Director of Driver Records Upheld on AppealRead the Press Release
Jackson, Miss - The criminal conviction of James Smith, former Director of Driver Records for the Mississippi Department of Public Safety, was affirmed today by the United States Court of Appeals for the Fifth Circuit, U.S. Attorney Gregory K. Davis announced.
Smith’s appeal followed his conviction by a jury at the conclusion of a one-week trial before U.S. District Judge Daniel P. Jordan III in August, 2011. Smith was found guilty of making false statements concerning commercial driver records that he altered using his authority as Director of Driver Records. The records were maintained in a database linked to the Commercial Driver’s License Information System, which Congress established so that records of commercial license holders can be accessible nationwide.
As Mississippi Director of Drivers Records from 2005 to 2010, Smith was responsible for overseeing records of persons holding commercial driver’s licenses and had the ability to access and change their driving records. He was found guilty of falsifying records for commercial driver’s license holders. In his appeal, Smith challenged the federal jurisdiction and the materiality of the false statements. The Court of Appeals rejected both of Smith’s claims on appeal. The Court determined that Smith’s manipulation of commercial driving records fell within the jurisdiction of the U.S. Department of Transportation’s Federal Motor Carrier Safety Administration and that the changes Smith made to the driving records were material for the purpose of the federal false statement statute.
Assistant United States Attorneys Harold Brittain and Angela Williams were the prosecutors of the case in United States District Court. Assistant United States Attorney Gaines Cleveland handled the case on appeal.###
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Chase M. Robichaux Pleads Guilty to Trafficking of MethamphetamineRead the Press Release
CHASE M. ROBICHAUX, age 23, a resident of Thibodaux, Louisiana, pleaded guilty in federal court yesterday to being part of a conspiracy involving the trafficking of methamphetamine, announced U.S. Attorney Dana J. Boente.
ROBICHAUX pleaded guilty before U.S. District Judge Lance M. Africk to a one-count violation of the Federal Controlled Substances Act. The count carries a maximum statutory penalty of life imprisonment and a minimum of 10 years.
According to court documents, ROBICHAUX exited his residence and traveled to a Days Inn Hotel in Thibodaux, Louisiana, where he collected packages of methamphetamine from individuals therein. ROBICHAUX exited the hotel with the packages, but hid the packages in a cane field after learning that authorities were looking for him. ROBICHAUX was later arrested at his residence and admitted to distributing methamphetamine he had obtained from a California source. ROBICHAUX took agents to the cane field where he had buried the packages of methamphetamine. Agents retrieved the packages, which were found to contain more than 2,000 grams of methamphetamine.
This case was investigated by the Drug Enforcement Administration, Terrebonne Narcotics Task Force, and Louisiana State Police. This case was prosecuted by Assistant U.S. Attorney Kevin G. Boitmann.
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Canadian man pleads guilty to bank fraudRead the Press Release
BUFFALO, N.Y. - The U.S. Attorney’s Office announced today that Ali Haddad, 31, of Montreal, Quebec, Canada, pleaded guilty to bank fraud before U.S. District Judge Richard J. Arcara. The charge carries a maximum sentence of 30 years in prison, a fine of $1,000,000 or both.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the prosecution, stated that Haddad, a citizen and resident of Canada, opened a business bank account at an M&T Bank branch in Buffalo in the name of Symcore, Inc. Between January 15, 2009, and February 19, 2009, the defendant deposited false and fraudulent pre-authorized debits (“PADS”) into the account. The PADS deposited to the Symcore account purportedly represented money owed to Symcore by the payers listed on the PADS. M&T Bank relied upon the deposited PADS to calculate the daily cash balance of funds in the Symcore business checking account.On February 19, 2009, the defendant withdrew money from the Symcore account by electronically transmitting funds from the account by means of wire communication to bank accounts in Canada. Haddad caused two separate wire transactions to transmit funds from the Symcore account in the following amounts: $10,000, and $18,000 totaling $28,000. This money represented funds from the deposit of the false and fraudulent PADS.
Between December 24, 2008, and January 26, 2009, the defendant committed similar fraudulent acts against Bank of America. However, Bank of America discovered the fraud before the defendant was able to unlawfully transmit funds from the Bank of America account.The total loss to M&T Bank and Bank of America was $28,000.
The plea is the result of an investigation by the United States Secret Service, under the direction of Special Agent in Charge Tracy Gast.
Sentencing is scheduled for July 1, 2013 at 1:00 p.m. before Judge Arcara.Buffalo man pleads guilty to hamburg and kenmore bank robberiesRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Timothy Ernle, 51 of Buffalo, N.Y., pleaded guilty before U.S. District Judge Richard J. Arcara to bank robbery. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
According to Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, the defendant robbed the M&T Bank branch on Delaware Avenue in Kenmore, N.Y. in July 2010. Ernle also robbed the Evans National Bank on South Park Avenue in Hamburg, N.Y. on two separate occasions, also in July 2010. During all three robberies, the defendant disguised himself with a baseball hat, latex gloves and a stocking over his face. Ernle jumped over the teller counters and emptied the drawers.
The defendant, who is currently serving a state prison sentence for a bank robbery in Niagara County, stole approximately $27,000 during the three robberies.
The plea is the result of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Christopher M. Piehota.
Sentencing is scheduled for October 18, 2013 at 1:30 p.m. before Judge ArcaraBrooklyn Woman Pleads Guilty in Manhattan Federal Court to Participating in $57.3 Million Fraud on Organization That Makes Reparations to Victims of Nazi PersecutionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ELLA VOSKRESENSKIY pled guilty today in Manhattan federal court to conspiring to defraud programs administered by the Conference on Jewish Material Claims Against Germany, Inc. (the “Claims Conference”), established to aid the survivors of Nazi persecution, out of more than $57 million. VOSKRESENSKIY, a former employee of the Claims Conference, was arrested in October 2011, as part of an ongoing investigation that has resulted in charges against a total of 31 defendants, 10 of whom were former Claims Conference employees, including a former director. She pled guilty today before U.S. District Judge Thomas P. Griesa.
Manhattan U.S. Attorney Preet Bharara said: “Ella Voskresenskiy’s abuse of her position at the Claims Conference and her continued exploitation of the organization even after her employment ended is an all-too-familiar story in this case. But guilty pleas have also become very familiar in this case, and hers is the 26th.”
According to the Complaint and the Indictment filed in Manhattan federal court:
The Claims Conference, a not-for-profit organization which provides assistance to victims of Nazi persecution, supervises and administers several funds that make reparation payments to victims of the Nazis, including “the Hardship Fund” and “the Article 2 Fund,” both of which are funded by the German government. Applications for disbursements through these funds are processed by employees of the Claims Conference’s office in Manhattan, and the employees are supposed to confirm that the applicants meet the specific criteria for payments under the funds.
As part of the charged scheme, a network of individuals systematically defrauded the Article 2 Fund and Hardship Fund programs for over a decade. The Claims Conference first suspected the fraud in December 2009, and immediately reported their suspicions to law enforcement, which conducted a wide-reaching investigation.
The Hardship Fund pays a one-time payment of approximately $3,500 to victims of Nazi persecution who evacuated the cities in which they lived and were forced to become refugees. Members of the conspiracy submitted fraudulent applications for people who were not eligible. Many of the recipients of fraudulent funds were born after World War II, and at least one person was not even Jewish. Some members of the conspiracy recruited other individuals to provide identification documents, such as passports and birth certificates, which were then fraudulently altered and submitted to corrupt insiders at the Claims Conference, who then processed those applications. When the applicants received their compensation checks, they kept a portion of the money and passed the rest back up the chain.
From the investigation to date, the Claims Conference has determined that at least 3,839 Hardship Fund applications appear to be fraudulent. These applications resulted in a loss to the Hardship Fund of approximately $12.3 million.
The Article 2 Fund makes monthly payments of approximately $400 to survivors of Nazi persecution who make less than $16,000 per year, and either lived in hiding or under a false identity for at least 18 months; lived in a Jewish ghetto for 18 months; or were incarcerated for six months in a concentration camp or a forced labor camp. The fraud involved doctored identification documents in which the applicant’s date and place of birth had been changed. The fraud also involved more sophisticated deception, including altering documents that the Claims Conference obtained from outside sources to verify a person’s persecution by the Nazis. Some of the detailed descriptions of persecution in the fraudulent Article 2 Fund applications were completely fabricated.
From the investigation to date, the Claims Conference has determined that at least 1,112 Article 2 Fund cases it processed have been determined to be fraudulent. Those cases have resulted in a loss to the Claims Conference of approximately $45 million.
While employed as a caseworker in the Article 2 Fund program at the Claims Conference, VOSKRESENSKIY knowingly processed fraudulent applications in return for payments from her co-conspirators. In addition, when she was no longer employed at the Claims Conference, VOSKRESENSKIY passed materials, including identification documents, to a co-conspirator still employed at the Claims Conference to support fraudulent Hardship Fund applications.
VOSKRESENSKIY is the 26th of the 31 defendants charged in the scheme to plead guilty, including eight former Claims Conference employees. Charges remain pending against the remaining five defendants in the case, who are presumed innocent unless and until proven guilty.
VOSKRESENSKIY, 42, of Brooklyn, New York, faces a maximum sentence of 40 years in prison. She is scheduled to be sentenced by Judge Griesa on August 5, 2013 at 4:30 p.m.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation (“FBI”). He also thanked the Claims Conference for bringing this matter to the FBI’s attention and for its extraordinary continued cooperation in this investigation, which he noted is ongoing.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorney Christopher D. Frey and Special Assistant U.S. Attorney Rebecca Rohr are in charge of the prosecution.
U.S. v. Semem Domnitser, et al. S1 Indictment
Bells Man Indicted for Drug Distribution Conspiracy Following Discovery of 15 Ounces of MethRead the Press Release
Jackson, TN – Angel Hernandez, Jr., 29, of Bells, TN, was indicted on March 18, 2013 on two counts of conspiracy to distribute over 50 grams of methamphetamine, announced United States Attorney Edward L. Stanton III.
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Hernandez was taken into custody on March 12, 2013 following the execution of a search warrant on his Humboldt, TN motel room. Investigators discovered approximately 15 ounces of Ice Methamphetamine. A federal criminal complaint was filed in Jackson, TN the following day
A Federal Grand Jury met earlier this week and returned a two-count indictment against Hernandez. During his initial appearance in at the Jackson Federal Courthouse on March 21, 2013, Hernandez was remanded to the custody of the U.S. Marshalls. A detention hearing is scheduled for March 26, 2013.
This case was investigated by the West Tennessee Violent Crime and Drug Task Force, the Drug Enforcement Administration Jackson Task Force, and the Crockett County Sheriff’s Department. Assistant United States Attorney Matt Wilson is representing the government.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Beclabito, N.M., Man Pleads Guilty to Involuntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Stanford Benally, 41, an enrolled member of the Navajo Nation who resides in Beclabito, N.M., pled guilty this morning to an involuntary manslaughter charge under a plea agreement with the U.S. Attorney’s Office.
Benally was arrested on Sept. 11, 2012, on an indictment charging him with second degree murder and involuntary manslaughter. The second degree murder charge alleged that, on May 19, 2012, Benally caused the death of a minor female by serving her liquor and failing to provide care and seek medical attention for her in a manner that evinced a callous and wanton disregard for human life. The involuntary manslaughter charge alleged that Benally caused the death of victim, who was unconscious and intoxicated, by negligently failing to provide care or to seek medical assistance for the victim.
During this morning’s proceedings, Benally pled guilty to the involuntary manslaughter charge. In entering his guilty plea, Benally admitted that, on May 19, 2012, he killed his daughter by negligently failing to provide care or seeking medical assistance for her even though he knew she was unconscious and intoxicated. He further admitted that his criminal act took place on the Navajo Indian Reservation.
Benally has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Benally faces a maximum penalty of eight years in prison. The second degree murder charge will be dismissed after Benally is sentenced.
The case is being prosecuted by Assistant U.S. Attorneys Jennifer M. Rozzoni and Jack E. Burkhead, and was investigated by the Albuquerque and Farmington offices of the FBI and the Shiprock Division of the Navajo Nation Department of Public Safety.
Baltimore Men Exiled to 10 Years in Prison on Drug ChargesRead the Press Release
Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Blake Betters, age 23, of Baltimore, Maryland, today to 10 years in prison followed by five years of supervised release for conspiracy to possess with the intent to distribute five kilograms or more of cocaine.
On March 19, 2013, Judge Bredar sentenced co-defendant Brandon Harris, age 22, also of Baltimore, to 10 years in prison followed by five years of supervised release on the same charge.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to their plea agreements, in May 2012, Betters, Harris and a co-conspirator, were introduced to an undercover Bureau of Alcohol, Tobacco and Firearms (ATF) agent who proposed robbing a large scale drug trafficker of multiple kilograms of narcotics. Betters, Harris and their co-conspirator agreed to commit the robbery and to resell the stolen narcotics to customers in the Baltimore area.
On June 14, 2012, Betters, Harris and four co-conspirators met with the undercover agent to make their final preparations to commit the robbery. Betters, Harris and their co-conspirators were armed, and they all expected the weapons to be used to commit the robbery. After confirming that they were ready to rob the stash house, Betters, Harris and their co-conspirators followed the agent to a location in Baltimore where they believed they would be given the location of the robbery. As the arrest team approached, Betters and Harris fled, but were quickly apprehended and arrested.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorneys Clinton J. Fuchs and John W. Sippel, Jr., who prosecuted the case.
Baltimore Man Exiled to 10 Years in Prison for Drug Distribution and Possession of A Gun in Furtherance of A Drug CrimeRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Glenn Anthony Thompson, age 45, of Baltimore, today to 10 years in prison, followed by four years of supervised release, for possession with intent to distribute crack cocaine and heroin, and for possession of a gun in furtherance of drug trafficking.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to Thompson's plea agreement, on November 11, 2009, law enforcement executed a search warrant at Thompson’s home in the 2000 block of Westwood Avenue in Baltimore. During the search, officers recovered a loaded .357 revolver, .357 ammunition, a black semi-automatic pellet gun, a safe that contained crack cocaine and heroin, ten baggies of heroin from a sock in the bedroom, and .38 caliber ammunition. The total amount of narcotics recovered was 38.48 grams of crack cocaine and 50.80 grams of heroin.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Ayn B. Ducao, who prosecuted the case.
Authorities Charge Four Individuals and Shut Down Businesses Across SoCal That Allegedly Sold Nitrous Oxide as Recreational DrugRead the Press Release
LOS ANGELES – Law enforcement authorities today arrested three defendants and executed 26 search warrants as part of a federal criminal investigation into the sale of nitrous oxide – an inhalant ostensibly offered for use as a “booster” in sports cars, but in reality being distributed solely for recreational drug use.
Documents related to the investigation allege that nitrous oxide is being sold by stores across Southern California that purport to sell the gas for welding or car racing applications, but in fact are merely distributing a drug used by young people at rave-style parties.
A fourth defendant charged as part of the investigation is currently being sought by authorities.
The investigation into the illegal distribution of nitrous oxide was announced at a press conference this afternoon by United States Attorney André Birotte Jr.; Los Angeles County Sheriff Lee Baca; and Lisa Malinowski, Special Agent in Charge of the United States Food and Drug Administration’s Office of Criminal Investigations.
Nitrous oxide is a dangerous prescription drug that is inhaled by recreational users, typically from balloons that are filled from large, compressed gang cylinders. The drug can cause many significant and debilitating side effects, including, in extreme cases, death. During the past year, several adolescents in the Los Angeles region have been killed in car accidents linked to the use of nitrous oxide, and acts of violence have been associated with the inhalation or sale of the drug, according to court documents. Sales of nitrous oxide as a drug have dramatically increased in Southern California over the past five years, according to the Los Angeles Sheriff’s Department.
Two criminal complaints filed in United States District Court allege that the four defendants – as well as a host of storefronts across Los Angeles and Orange counties, as well as the Inland Empire – engaged in “misbranding” of nitrous oxide because they are distributing nitrous oxide for personal use without a prescription and in containers that do not include proper warning labels.
“Nitrous oxide is a dangerous inhalant when used for recreational purposes, and we want the public, especially parents, to be aware of its abuse by our youth,” said United States Attorney André Birotte Jr. “We also want those who choose to profit from the sale of nitrous oxide as a recreational drug to know that law enforcement is on your trail. We will find you, prosecute you, and convict you.”
A 73-page affidavit filed in support of the criminal complaints outlines a 15-month investigation dubbed “Operation No Laughing Matter,” a reference to “laughing gas,” a commonly used name for nitrous oxide. The prescription drug has legitimate uses, such as an anesthesia, but is used also for recreational purposes to create a temporary, euphoric “rush.” At high and prolonged exposure levels, nitrous oxide is an asphyxiant that can cause death from a lack of oxygen. The illegal use of nitrous oxide can also lead to spasms, convulsions and other health problems.
The illegal distribution of nitrous oxide also negatively impacts the environment. Nitrous oxide is a greenhouse gas with about 300 times the harmful impact of carbon dioxide, the most common and best-known greenhouse gas.
One criminal complaint charges three defendants associated with Victor Welding Supply on East 58th Street in South Los Angeles. Out of those three defendants, two were arrested earlier this afternoon at Victor Welding. Those charges are: William Victor, 65, of Northridge, who is currently being sought by authorities;
Edward Valencia, 51, of Lynwood, who was arrested; and
Federico Valencia, 58, of South Los Angeles, who was arrested.
The third defendant arrested today – Rose Marie Cuellar, 20, of Florence-Graham – is an employee of LA Rush, Inc., which operates stores in Norwalk and Huntington Park.
“The collaboration with the FDA and U.S. Attorney’s Office to crack down on these illegal nitrous oxide businesses enables us to prevent harm to youth that are using these drugs recreationally at illegal parties,” said Sheriff Lee Baca. “Through our Electronic Communication Unit, which observes open source social media sites at Sheriff’s Headquarters Bureau, we have been able to locate more than 350 illegal parties that were openly advertised on social media. The businesses that were targeted today sell a dangerous product that perpetrates violent assaults, sexual assaults, juvenile fatalities and overdoses.”
The three defendants arrested today are expected to remain in custody until they make their initial court appearances in United States District Court in downtown Los Angeles on Monday. Authorities will attempt to take Victor into custody.
In addition to the four arrests, authorities today executed federal search warrants at 17 businesses and on nine delivery vehicles.
“Today’s large-scale enforcement operation demonstrates the commitment of the FDA’s Office of Criminal Investigations to protect the health and safety of the public from the harms inherent in being exposed to unsafe and potentially life-threatening misbranded drugs,” said Lisa Malinowski, Special Agent in Charge of the Los Angeles Field Office of the FDA’s Office of Criminal Investigations. “OCI will continue to aggressively pursue those involved in the sale of misbranded drugs and will strive to ensure that they are prosecuted to the full extent of the law.”
The federal charge of misbranding a drug is a misdemeanor violation of the federal Food, Drug, and Cosmetic Act that carries a statutory maximum penalty of one year in prison and up to a $100,000 fine.
Operation No Laughing Matter is part of an ongoing investigation being conducted by the United States Food and Drug Administration’s Office of Criminal Investigations and the Los Angeles County Sheriff’s Department.
Release No. 13-041
Another Convicted, Another Charged in Hostage Taking/Harboring CaseRead the Press Release
HOUSTON – Mexican national Marco Garcia-Perez, 38, has been convicted of conspiracy to transport illegal aliens, United States Attorney Kenneth Magidson announced today. Garcia-Perez was among seven charged in an ongoing conspiracy to harbor and hold smuggled aliens for ransom payments.
A third superseding indictment adding an eighth individual, Mexican National Emmanuel Rivera-Abarca, 19, was returned Feb. 28, 2013. He is expected to appear before a U.S. magistrate judge in the near future.
Charges in the case stem from an investigation that began in mid-August 2012, after family members and friends of two aliens who had been smuggled into the country contacted law enforcement to report receiving extortion calls demanding money for the aliens’ release. Family members wired money which was picked up at various locations in Harris County.
Agents later executed a search warrant at a residence on Amblewood Drive in Houston and encountered 26 illegal aliens, at least two of whom were juveniles, allegedly being held hostage inside the residence. According to the victim aliens, upon arrival in Houston they were forced to undress and informed they had been “sold” and would not be released until family members made payments to the men holding them hostage. While held hostage at the residence, the indictment indicated victims reported they were held in their underwear, in locked rooms with boarded up windows and in deplorable conditions. The victims also indicated they were guarded by men constantly armed with a handgun. Victims reported they were not allowed to leave the residence until payment was sent for their release. Some victims said they were threatened with harm or death if payment was not received.
That day, agents also encountered and arrested Mexican nationals Virgilio De La Torre-Santana, 27, Adauto Aguilar-Lara, 34, and Job Solis-Benito, 23. Subsequently, three more defendants were charged in the case - Samuel Castro-Flores, 41, from Mexico, Joshua Andrew Carbajal, 25, from Alice, and Garcia-Perez. The indictment remains under seal as to those charged but not as yet in custody.
De La Torre and Aguilar have entered guilty pleas in connection with their role in the ongoing conspiracy.
Garcia-Perez is set for sentencing on Sept. 20, 2013, at which time he faces up to 10 years imprisonment and a possible $250,000 fine. Sentencing for both De La Torre-Santana and Aguilar-Lara are also set for sentencing on Sept. 20, 2013. At that time, De La Torre faces up to life in prison, while Aguilar-Lara faces up to 10 years imprisonment. Both also face a possible $250,000 fine. Charges remain pending against all the remaining defendants. A final pretrial conference and jury selection is scheduled for June 10, 2013. They are presumed innocent unless convicted through due process of law.
The investigation leading to the charges in this case was conducted by Homeland Security Investigations in Houston, Washington D.C., and Virginia and police departments in Prince William County and Houston. Assistant United States Attorney Casey N. MacDonald is prosecuting the case.
Anchorage Man sentenced to over three years in prison for investor fraud schemeRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was sentenced in federal court in Anchorage for fraudulently obtaining over $300,000 from Alaska victims.
Donald Lee Smith, 61, of Anchorage, was sentenced to just over three years in prison today by Senior
U.S. District Court Judge H. Russell Holland, who imposed a term of 37 months in prison, followed by a three year term of supervised release. Smith was ordered to pay $316,150.58 in restitution, with credit for $25,000 in payments made at the time of sentencing. Two of the victims addressed the court, discussing the financial and emotional impact they suffered because of Smith’s crimes.Smith pled guilty on August 6, 2012, to engaging in an investment fraud scheme and that he fraudulently obtained over $300,000 from victims in Alaska during 2007 and 2008. Smith pled guilty to one count of wire fraud and one count of money laundering in connection with the scheme. Smith admitted that he obtained over $300,000 from the victims by making intentionally false representations about investment opportunities. Smith admitted that he obtained the funds from his investors and lenders without telling them that he was using a substantial portion of their money to gamble in casinos rather than invest in properties. According to the admissions made in court, the victims transferred funds from Anchorage to Oklahoma, which the defendant then withdrew and transferred money to other accounts, knowing the money was criminally derived.
Smith was indicted by a federal grand jury in December 2011 and was originally charged with 12 counts of mail, wire fraud and one count of money laundering. Smith lived in Alaska when the scheme began, but then moved to Oklahoma, according to court documents.
“Defendant Smith took advantage of the trust of his victims. The three year sentence imposed demonstrates the seriousness of his criminal conduct. We will continue to work with our law enforcement partners to protect victims of financial fraud and rigorously prosecute those who seek to steal the savings of others through fraudulent schemes” stated U.S. Attorney Karen L. Loeffler.“I hope that today’s sentence serves to bring some closure to those victims defrauded by Mr. Smith, “said FBI Acting Special Agent in Charge Kevin C. Donovan. “On behalf of the FBI, I would like to thank the U.S. Attorney’s Office and IRS-Criminal Investigation for their unwavering commitment to this investigation and prosecution. Working together, we will continue to pursue those who misrepresent themselves or their intention to defraud innocent victims.”
Ms. Loeffler commends the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation Division for the investigation of this case.
Anchorage Felon sentenced to 41 months prison for illegal gun possessionRead the Press Release
Anchorage, Alaska- U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was sentenced in federal court in Anchorage for being a felon in possession of a firearm.
Kenneth Joel Ball, 27, of Anchorage, Alaska, was sentenced today by U.S. States District Court Judge Sharon L. Gleason, to 41 months in prison, followed by a three year term of supervised release. The Court did not order Mr. Ball to pay a fine.
According to Assistant U.S. Attorney Stephanie C. Courter, who prosecuted the case, Mr. Ball was found in possession of a Kel-Tec, Model P-11, 9mm pistol on May 31, 2012, in Anchorage. Mr. Ball’s possession of a firearm was prohibited due to his prior felony convictions, including state theft and narcotics charges.
Ms. Loeffler commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Anchorage Police Department for their investigation of this case.
Albuquerque Man Sentenced to Federal Prison for Armed Robbery of Fast Food Restaurant in Moriarty, N.M.Read the Press Release
ALBUQUERQUE – Yesterday afternoon a federal judge sentenced Abraham Sedillo, 26, of Albuquerque, N.M., to 51 months in prison followed by three years of supervised release for his federal armed robbery conviction. Sedillo also was ordered to make full restitution to the victim of the armed robbery. Sedillo’s sentence was announced by U.S. Attorney Kenneth J. Gonzales, 7th Judicial District Attorney Clint Wellborn, and Thomas G. Atteberry, Special Agent in Charge of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Sedillo was indicted in March 2012, and charged with violating the Hobbs Act by interfering with a business engaged in interstate commerce by robbery. The federal charge against Sedillo arose out of the armed robbery of a Blake’s Lotaburger Restaurant in Moriarty, N.M., on Sept. 12, 2011. In Oct. 2012, Sedillo pled guilty to the indictment without the benefit of a plea agreement.
According to court records, on the night of Sept. 12, 2011, Sedillo, who was armed with a revolver, and an unidentified co-conspirator, who was armed with a knife, entered the Blake’s Lotaburger Restaurant shortly before its 10:00 p.m. closing time. Sedillo and his accomplice jumped over the counter, brandished their weapons at two employees, and demanded money. After the accomplice grabbed a container of money from the employees, the two robbers ran out of the restaurant.
During interviews with the Moriarity Police Department, the employees reported recognizing Sedillo because he had been employed at the restaurant in fall and winter of 2010. On Sept. 13, 2011, officers of the Albuquerque Police Department arrested Sedillo in Albuquerque, based on a state arrest warrant obtained by the Moriarity Police Department. Sedillo remained in local custody on state charges until April 11, 2012, when he was transferred to federal custody.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Moriarity Police Department, the Albuquerque Police Department and the District Attorney’s Office for the 7th Judicial District of the State of New Mexico, and was prosecuted by Assistant U.S. Attorneys Raul Torrez and William J. Pflugrath.
Alaska Bookkeeper sentenced for preparing false tax returns for drug dealersRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a woman from Houston, Alaska, was sentenced in federal court in Anchorage for preparing false tax returns for drug dealers.
Rebecca Renee Powell, 38, was sentenced today by U.S. District Court Judge Timothy M. Burgess, to ten months in prison, followed by one year of supervised release.
According to Assistant U.S. Attorneys Stephanie Courter and Thomas Bradley, who prosecuted the case, Powell, the owner of Alaska Contractors Bookkeeping Service, a bookkeeping, payroll, and tax service business in Wasilla, Alaska, admitted that she prepared false U.S. individual income tax returns for multiple individuals whose income was primarily derived from the sale of illegal narcotics. She prepared several of these returns knowing that they omitted substantial gross receipts derived from marijuana sales. Because Powell omitted the illegal drug sales, the individuals filing these returns falsely claimed and received the Earned Income Credit for tax years 2003 through 2007.
Powell also admitted to preparing returns in which she actively concealed the source of her client’s drug income and that she acted to conceal the source of these funds by creating the appearance that a legitimate business had generated this income. Powell admitted that she created false bills of sale and other documents in order to substantiate the fabricated figures on the return. She also chose names at random from the telephone book to use as “customers” on these documents, and used the internet to research prices and other information so that the documents would be comparable to those sold in her client’s legitimate business.
Court documents reveal that Powell admitted to preparing two false income tax returns for an undercover agent of the Internal Revenue Service in March 2009. On the returns, Powell admitted that she fabricated income and expenses. She also offered to create false invoices and other documents to substantiate the fabricated figures in order to make the undercover agent’s purported drug income appear to come from a legitimate source.
In sentencing Powell to a prison term, Judge Burgess also ordered Powell to pay $13,910 in restitution to the United States Treasury and further ordered that she not prepare tax returns during the period of her supervised release.
United States Attorney Karen Loeffler noted, “The collection and payment of taxes is a necessary and central part of the United States governmental system. It is a system that depends on honesty and voluntary compliance for the most part. In working with the IRS criminal investigators we will continue to vigorously prosecute those who chose to cheat and defraud the government”.
"Dishonest tax return preparers who abuse their position and file false returns or help others conceal ill-gotten gains from criminal activity run the risk of prosecution. Anyone contemplating manipulation of the integrity of our tax system for personal gain should consider that they may one day find themselves before a judge answering for those actions," said Kenneth J. Hines, Special Agent in Charge of IRS Criminal Investigation Division in Alaska.
Ms. Loeffler commends the IRS Criminal Investigation Division and the Drug Enforcement Administration for the investigation of this case.
21 March 2013
bank employee indicted for cashing forged tax refund checksRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a former employee of Wells Fargo Bank was indicted on charges of negotiating forged U.S. Treasury checks on two separate occasions.
Melissa Licelot Duran-Muniz, 24, of Anchorage, is the sole defendant named in the two-count indictment. The indictment charges that on April 18 and April 22, 2011, Duran-Muniz used her position to assist others in depositing or cashing two forged U.S. Treasury checks in the amounts of $6,776 and $7,702 respectively.
According to Assistant U.S. Attorneys Thomas Bradley and Stephanie Courter, who presented the case to the grand jury, this indictment is related to an indictment returned in July 2011 charging multiple defendants with conspiring to defraud the United States by filing false tax returns and negotiating fraudulently obtained tax refund checks. Defendants in that case used bank employees like Duran-Muniz to further their scheme.
The law provides for a maximum sentence on each count of up to 10 years in prison, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of the defendant.
The case was investigated under the purview of the Organized Crime Drug Enforcement Task Force, which is made up of personnel from the U.S. Attorney’s Office, Federal Bureau of Investigation, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, Internal Revenue Service–Criminal Investigation, U.S. Marshals Service, U.S. Postal Inspection Service, U.S. Coast Guard and the Anchorage Police Department.
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.
Woman Sentenced for Role in Cocaine Trafficking OperationRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 41-year-old Hopkins woman was sentenced for conspiring to distribute cocaine and crack cocaine between May of 2009 and April of 2011. United States District Court Judge Donovan W. Frank sentenced Daphne Denise Walker to 120 months in prison on one count of conspiracy to distribute crack cocaine. Walker was indicted along with two co-defendants on February 22, 2012, and pleaded guilty on August 27, 2012.
Following today’s sentencing, Dan Moren, Assistant Special Agent in Charge of the U.S. Drug Enforcement Administration’s Minneapolis-St. Paul Field Office, said, “Ms. Walker served as an important extension of the violent Raymond Avenue Crips street gang and was a significant source of supply for crack cocaine being distributed in north Minneapolis. Federal arrests of the gang’s significant members and leaders dealt a swift blow, thwarting the gang’s ability to continue drug and weapon trafficking and acts of violence in Minnesota.”
In her plea agreement, Walker admitted that from May 5, 2009, through April 2, 2011, she conspired with others to distribute 280 or more grams of crack cocaine. Specifically, Walker admitted having an agreement with Gregory Hopkins to supply her with cocaine and crack cocaine on a regular basis. Walker would then distribute the drugs to her customers.
On December 19, 2012, co-defendant Jose Ramon Salgado Roacho, age 24, of Brooklyn Park, was sentenced to 28 months on one count of conspiracy to distribute five or more kilograms of cocaine. He pleaded guilty on May 10, 2012. In his plea agreement, Roacho admitted he acted as a cocaine source for Hopkins and others.
On August 31, 2012, co-defendant Reinor Bonnick, age 35, of St. Paul, was sentenced to 90 months in prison on one count of conspiracy to distribute cocaine. He pleaded guilty on May 21, 2012. In his plea agreement, Bonnick admitted he facilitated multiple cocaine transactions between Roacho and Hopkins. The total amount of cocaine involved in those transactions was between 500 grams and two kilograms.
In a related case, eight individuals were sentenced in connection with distributing controlled substances. All eight were charged on August 17, 2011, in a superseding indictment and pleaded guilty: On July 12, 2012, Gregory Lamont Hopkins, age 36, of Minneapolis, was sentenced to 162 months in prison on one count of conspiracy to distribute controlled substances.
On April 27, 2012, Gregory Keaton, age 56, of Coon Rapids, was sentenced to 150 months on one count of possession with intent to distribute crack cocaine.
On April 19, 2012, Deellis Shannon, age 28, no known address, was sentenced to 120 months on one count of conspiracy to distribute controlled substances and one count of being felon in possession of a firearm.
On May 7, 2012, Derrick Bonnick, age 37, of Bloomington, was sentenced to 84 months on one count of conspiracy and one count of being a felon in possession of a firearm.
On February 7, 2012, Desmond Lee Brown, age 36, of Minneapolis, was sentenced to 68 months on one count of conspiracy.
On April 20, 2012, Manuel Dario Ramos, age 41, of Bloomington, was sentenced to 42 months one count of distribution of cocaine and one count of being a felon in possession of a firearm.
On June 26, 2012, Mohammad Mazhary, age 63, of Burnsville, was sentenced to 30 months on one count of maintaining a drug-involved premises.On September 25, 2012, Talaysha Johnson, age 34, of Minneapolis, was sentenced to one year and one day in prison on one count of conspiracy.
According to court documents filed in the related case, authorities began their investigation in October of 2010. On February 3, 2011, police made a controlled purchase of 25.3 grams of crack cocaine from Hopkins in Richfield. On July 11, 2011, police conducted a trash pull on Brown’s residence and recovered two plastic baggies containing cocaine residue. On August 2, 2011, authorities executed a search warrant at Brown’s residence and recovered approximately 302 grams of crack cocaine, approximately 138 grams of cocaine, two digital scales, and five guns. On July 8, 2011, police executed a search warrant at Keaton’s residence as well as in his van. Inside the van, officers recovered approximately 197.3 grams of crack cocaine and approximately 175.28 grams of cocaine. In Keaton’s residence, police seized $9,400 in cash, drug packaging materials, two digital scales, and numerous baggies containing traces of cocaine and crack cocaine.
Both of these cases were investigated by the U.S. Drug Enforcement Administration, the Bloomington Police Department, the Hennepin County Sheriff’s Office, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the U.S. Marshals Service, the St. Paul Police Department, the Richfield Police Department, and the Minneapolis Police Department. They were prosecuted by Assistant U.S. Attorney Jeffrey S. Paulsen.White River Man Pleads Guilty to Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that Francisco White Buffalo, age 35, of White River, South Dakota appeared before U.S. District Judge Roberto A. Lange on March 18, 2013 and pled guilty to Abusive Sexual Contact. The maximum penalty upon conviction is 10 years in custody, a $250,000 fine or both; life of supervised release; and a $100 special assessment.
The conviction stems from an incident that took place on August 15, 2012 when White Buffalo had sexual contact with the victim.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
A presentence investigation was ordered and a sentencing date was set for June 3, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Warren County, N.J., Man Sentenced to 48 Months in Prison for Possessing Images of Child Sexual AbuseRead the Press Release
TRENTON, N.J. - Warren County, N.J., man was sentenced today to 48 months in prison for possessing images on his computer and an external hard drive of children being sexually abused, including violent video images, U.S. Attorney Paul J. Fishman announced.
Leonard Ramirez, 41, of Great Meadows, N.J., previously pleaded guilty before U.S. District Judge Freda L. Wolfson to one count of an Indictment charging him with possession of child pornography. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:On April 21, 2009, law enforcement agents from the Phillipsburg, N.J., police department interviewed Ramirez at his former girlfriend’s residence in Phillipsburg. They obtained Ramirez’s consent to search his laptop computer and discovered the criminal images.
On May 13, 2009, law enforcement agents from the Warren County Prosecutor’s Office and the N.J. State Police executed a search warrant at Ramirez’s residence. Law enforcement seized an iMac computer and an external hard drive that contained numerous pictures and videos depicting child pornography. The external hard drive also contained videos of sadistic conduct and other violent images involving minors.
In addition to the prison term, Judge Wolfson sentenced Ramirez to five years of supervised release, with restricted contact with minors and computer-use monitoring. Ramirez also must register as a sex offender.
U.S. Attorney Fishman credited the FBI Cyber Crimes Task Force, under the direction of Acting Special Agent in Charge David Velazquez in Newark; the Warren County Prosecutor’s Office, under the direction of Prosecutor Richard T. Burke; the Warren County Chief of Detectives William R. Eppell; the Phillipsburg Police Department, under the direction of Chief James Faulborn; and the N.J. State Police, under the direction of Col. Rick Fuentes, Superintendent, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys John E. Clabby and R. Joseph Gribko of the U.S. Attorney's Office Criminal Division in Trenton.
13-136
Defense counsel: Brian Reilly, Assistant Federal Public Defender, Trenton
Warm Springs Man Pleads Guilty in Federal Court to Domestic Assault by a Habitual OffenderRead the Press Release
Victim Ends Up In Hospital on Three Separate Occasions After Violent Attacks by Domestic PartnerPORTLAND, Ore. – Casey Marcus Lillie, 26, of the Warm Springs Indian Reservation, pled guilty today before U.S. District Judge Michael W. Mosman to one count of domestic assault by an habitual offender. The maximum sentence for domestic assault by an habitual offender is ten years in prison, a fine of $250,000, and three years of supervised release. Sentencing is scheduled for June 20, 2013. Lillie is currently in the custody of the United States Marshals Service.
“The U.S. Attorney’s Office is committed to building and sustaining safe and secure Native communities across Oregon,” said Amanda Marshall, United States Attorney for the District of Oregon. “Consistent with enhancing the prosecution of domestic violence offenders in Indian Country, this prosecution represents a step in the right direction of holding domestic violence offenders accountable.”
According to the prosecutor’s statements in court, on December 12, 2012, Lillie assaulted a woman with whom he had been cohabitating as an intimate partner. Lillie struck the victim with his hands and kicked her in the face with his feet. The assault caused extensive bruising to the victim’s face. The defendant battered the victim so severely that one of her eyes was temporarily swollen shut. The victim’s injuries required her to be transported to Mt. View Hospital in Madras, Oregon, for medical attention.
On two separate prior occasions, in November 2011 and March 2012, the defendant was previously convicted in the Warm Springs Tribal Court for assault and battery, as well as abduction, against the same victim. Both of those prior assaults also resulted in the victim being transported to Mt. View Hospital for treatment of her injuries.
The case was investigated by the Warm Springs Police Department and the FBI’s Bend, Oregon office. Assistant U.S. Attorney Craig Gabriel is prosecuting the case.
Wapato Woman Sentenced to 10 Years in Federal Prison for Shooting Family MemberRead the Press Release
Spokane – Today, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Kara Lynn Stahi, age 20, of the Yakama Nation Indian Reservation, was sentenced today after having pleaded guilty in December, 2012, to Discharging a Firearm During the Commission of a Crime of Violence. United States District Court Judge Lonny Suko sentenced Stahi to a ten-year term of imprisonment, to be followed by a three-year term of court supervision upon her release from Federal prison.
During the court proceedings it was disclosed that, on July 22, 2012, a call was placed to 911 about a shooting on the Yakama Nation Indian Reservation. Yakama Tribal Police Officers quickly responded to the scene and discovered an individual with multiple gunshot wounds. The Tribal Officers also discovered several discharged ammunition casings. The victim was immediately transported to the hospital. A detective with the Yakama Police Department contacted the Federal Bureau of Investigation and a joint investigation began to determine the identity of the shooter.
The subsequent investigation revealed that during the early morning hours of July 22, 2012, Stahi had an argument with a family member. During the argument, James Anthony Lagmay retrieved a loaded firearm. Stahi took the firearm from Lagmay and used it to shoot the family-member-victim several times. After the shooting, Lagmay and Stahi, both of whom are previously convicted felons and, therefore, prohibited from possessing firearms, fled the crime scene. Federal arrest warrants were issued for Stahi and Lagmay, who were both arrested in the Fall of 2012. Lagmay subsequently pleaded guilty in October, 2012 for being a previously convicted felon in possession of ammunition. On January 31, 2013, Lagmay was sentenced to fifteen-month term of imprisonment, to be followed by a three-year term of court supervision upon release from Federal prison.
Michael C. Ormsby said, "This investigation is a superb example of the strong partnership among Tribal and Federal law enforcement personnel. The United States Attorney's Office, the Federal Bureau of Investigation, the Yakama Tribal Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives are committed to apprehending and prosecuting criminals who utilize firearms to commit crimes, particularly when the crime is as egregious as the offense committed in this case."
This investigation was conducted by the Federal Bureau of Investigation, the Yakama Nation Tribal Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Thomas J. Hanlon, an Assistant United States Attorney for the Eastern District of Washington.
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Wanblee Man Pleads Guilty to Controlled Substance ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that Reed Thomas Brown, Jr. a/k/a Baby Reed, age 37, of Wanblee, South Dakota appeared before U.S. Magistrate Judge Veronica L. Duffy on March 13, 2013 and pled guilty to Count I of the Indictment that charged him with conspiracy to distribute a controlled substance. The penalty upon conviction is a minimum of 5 up to 40 years’ imprisonment and/or a $5,000,000 fine.
Between October 2008 and July 2012, in South Dakota, Brown conspired to distribute 100 kilograms or more of marijuana. The investigation was conducted as part of Operation Eagle Eye, a controlled substances investigation conducted by the Northern Plains Safe Trails Task Force Drug Enforcement Task Force, whose member agencies include the Federal Bureaus of Investigation, the Bureau of Indian Affairs Office of Justice Services, the South Dakota Division of Criminal Investigation, the South Dakota Highway Patrol, the Pierre Police Department, and the Oglala Sioux Tribe – Department of Public Safety. The case is being prosecuted by Assistant U.S. Attorney Ted L. McBride.
The defendant was remanded to the custody of the U.S. Marshal pending acceptance of this plea and sentencing.
Wanblee Man Pleads Guilty to Controlled Substance ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that Howard Red Elk, age 45, of Wanblee, South Dakota appeared before Chief Judge Jeffrey L. Viken, U.S. District Court, on March 8, 2013 and pled guilty to conspiracy to distribute a controlled substance. The maximum penalty upon conviction is 5 years of imprisonment and/or a $250,000 fine.
Between January 2012, and continuing to July 24, 2012, Red Elk conspired to distribute marijuana in South Dakota. The investigation was conducted by the Bureau of Indian Affairs Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety, Northern Plains Safe Trails Drug Enforcement Task Force, and Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Ted McBride.
A presentence investigation was ordered and a sentencing date was set for June 6, 2013. The defendant was released on bond pending sentencing.
Walla Walla Man Sentenced in Idaho for Possessing Sawed-off ShotgunRead the Press Release
BOISE – Richard Dennis Streck III, 37, of Walla Walla, Washington, was sentenced today in United States District Court to 30 months in prison followed by three years of supervised release for possessing an unregistered sawed-off shotgun, U.S. Attorney Wendy J. Olson announced. Streck was sentenced in federal court in Boise by Senior U.S. District Judge William B. Shubb of the Eastern District of California. Streck pleaded guilty to the charge on December 20, 2012.
According to the arguments at the sentencing, on January 19, 2011, Streck was driving from Oregon to Idaho when he was pulled over by law enforcement for a traffic infraction. After a drug detection K-9 alerted on the vehicle, a search of Streck’s vehicle discovered methamphetamine, marijuana, and a stolen sawed-off shotgun. Streck was attempting to deliver the stolen sawed-off shot gun to his methamphetamine supplier, a member of a white supremacy gang. Judge Shubb ordered, as a condition of his supervised release, that Streck have no contact with documented gang members and not possess items of gang paraphernalia.
The case was investigated by the Payette County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Union County, N.J., Man Charged with Distributing Images and Videos of Child Sexual AbuseRead the Press Release
NEWARK, N.J. – A Linden, N.J., man was arrested yesterday and charged for allegedly distributing child pornography from his home computer, U.S. Attorney Paul J. Fishman announced.
John Ellenbacher, 47, of Linden, N.J., is charged by Complaint with one count of distributing images of child sex abuse over the Internet. He is scheduled to appear this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to the criminal Complaint:
In August 2012, law enforcement officers engaged in a child exploitation investigation intercepted emails containing criminal images and videos. Subsequent investigation into the origin of the emails led to a computer at Ellenbacher’s home.
Special agents of Immigration and Customs Enforcement, Homeland Security Investigations (ICE HSI) executed a search warrant yesterday at Ellenbacher’s residence in Linden, seizing digital evidence that contained multiple images depicting child sexual abuse, including material involving prepubescent minors. Ellenbacher was taken into custody following the search.
The distribution count carries a mandatory minimum penalty of five years in prison, and a maximum potential penalty of 20 years in prison and a $250,000 fine.U.S. Attorney Fishman credited special agents of ICE HSI, under the direction of Special Agent in Charge Andrew M. McLees in Newark, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charge and allegations against Ellenbacher are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Anyone with information which may be relevant to this investigation is encouraged to contact ICE HSI through its toll-free hotline at 1-866-DHS-2ICE or by completing its online tip form at http://www.ice.gov/exec/forms/hsi-tips/tips.asp.
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Ellenbacher, John Complaint
Two Sentenced to Federal Prison for Roles in 2010 Wedding Murders in Juarez, MexicoRead the Press Release
In El Paso, 23-year old Gonzalo Delgado-Chavez of Namiquipa, Chihuahua, Mexico, was sentenced to
262 months in federal prison for his role in the kidnapping and murder of three individuals during a wedding ceremony in Juarez, Mexico in May of 2010 announced United States Attorney Robert Pitman, Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, El Paso Division and
Federal Bureau of Investigation Special Agent In Charge Carol Lee, Albuquerque Division.In addition to the prison term, U.S. District Judge David Briones ordered that Delgado be placed under supervised release for a period of five years after completing his prison term. He was also ordered to pay a $2,000 fine.
On October 18, 2012, Delgado pleaded guilty to one count of conspiracy to commit murder on foreign soil. By pleading guilty, Delgado admitted that he and co-defendant, 25-year-old Irvin Enriquez, were responsible for the kidnapping and subsequent murder of the groom, Rafael Morales-Valencia, a
U.S. citizen, his brother and best man, Jaime Morales-Valencia, a legal Permanent Resident Alien, and their uncle, Guadalupe Morales- Arreola, a B1/B2 visa holder and citizen of Mexico during the ceremony on May 7, 2010, at El Senor de la Misericordia Catholica church in Juarez.According to statements provided at sentencing, on April 10, 2010, assassins working for the
Vicente Carrillo Fuentes drug trafficking organization, “La Linea,” murdered Enriquez’s father based on his association with the Sinaloa Cartel. Based on the false belief that the victims were part of La Linea and that Guadalupe Morales- Arreloa worked for the person responsible for his father’s death, Enriquez solicited the assistance of Jose Antonio Torres-Marrufo and his purported team of assassins to exact revenge. Delgado admitted that he traveled from El Paso to Juarez at the request of Enriquez and identified the victims for Torres-Marrufo’s assassins.On February 28, 2013, Judge Briones sentenced Enriquez to 30 years in federal prison followed by five years of supervised release and ordered that Enriquez pay a $2,000 fine. Enriquez pleaded guilty to the charge of conspiracy to kill in a foreign country on November 9, 2012. By pleading guilty, Enriquez admitted to conspiring with Delgado and others to assist co-conspirators in the kidnapping and murder plot.
“The prosecution and punishment of Mr. Delgado-Chavez highlights our commitment to use every means to track down and hold accountable those who perpetuate the horrifying cycle of violence associated with drug trafficking, both in this country and in Mexico,” stated U.S. Attorney Robert Pitman.
“Violent acts carried out on behalf of drug trafficking organizations affect citizens on both sides of the border. Because the safety of our communities is our top priority, DEA and its law enforcement partners remain steadfast in our pursuit of those responsible for the trafficking of illegal drugs throughout the region as well as related violence in neighboring Ciudad Juarez,” stated Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, El Paso Division.
“This multi-agency investigation dealt a significant blow to the violent Sinaloa drug trafficking organization and has made our communities safer. This investigation and prosecution were very important to the families of the victims from the State of New Mexico. They deserved justice for the loss of their loved ones. I would like to thank the many agencies that assisted the FBI's Las Cruces Southwest Border Hybrid Squad in this investigation, especially the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Las Cruces-Dona Aña Metro Narcotics Task Force,” stated Federal Bureau of Investigation Special Agent in Charge Carol Lee, Albuquerque Division.
U.S. Attorney Pitman also expressed his appreciation to U.S. Attorney Kenneth Gonzalez and the District of New Mexico for their assistance in this prosecution as well as to the Drug Enforcement Administration and the Federal Bureau of Investigation for their investigation.
Two Leaders of Non-Profit Sentenced for Failing to Report Misuse of $392,000 in Grant Money- Helped Conceal Activities of Former Council Member Harry L. Thomas, Jr. -Read the Press Release
WASHINGTON – Marshall D. Banks and James Garvin, who helped lead the Langston in the 21st Century Foundation, a non-profit organization that operated youth programs in the District of Columbia, were sentenced today to three years of supervised probation, 80 hours of community service, and ordered to pay full restitution for failing to report and concealing the misappropriation of $392,000 in government grants.
The sentences, in the U.S. District Court for the District of Columbia, were announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI).
Banks and Garvin pled guilty in January 2012 to one count each of misprision of a felony (theft or bribery concerning programs receiving federal funds). They were among five people to plead guilty to charges in an ongoing investigation into activities involving former District of Columbia Council Member Harry L. Thomas, Jr. Thomas pled guilty last year to charges stemming from a scheme in which he used more than $350,000 in taxpayers’ money that was earmarked for the arts, youth recreation, and summer programs for his own personal benefit.
Thomas resigned as a condition of his plea agreement and is now serving a 38-month prison sentence. The Honorable John D. Bates sentenced Banks and Garvin this morning.
The others who have pled guilty include Millicent D. West, the former director and chief executive officer of another non-profit organization that promotes youth opportunities, and Danita C. Doleman, the president of Youth Technology Institute. West and Doleman pled guilty to charges in connection with grant money that was used to pay for an inaugural ball. They are awaiting sentencing.
Banks, 72, and Garvin, 56, had leadership positions with the Langston in the 21st Century Foundation (Langston 21), a non-profit. Banks, of Washington, D.C., was the founder, and Garvin, of Upper Marlboro, Md., was a board member. Garvin also is the general manager of the Langston Golf Course in Northeast Washington, a site of some of the non-profit’s activities.
Langston 21 operated youth activities designed to foster educational advancement, including programs at Langston Golf Course, which is located in Ward 5 of the District of Columbia. Garvin worked with Banks, who also was director of the organization.
According to the government’s evidence, Thomas, who represented Ward 5, informed Garvin in 2007 that he wanted to obtain grant funds to conduct activities in the ward. Thomas informed Garvin that Thomas needed a non-profit to act as the recipient of the money. Thomas also stated that a portion of the funds could be dedicated to youth programs at Langston Golf Course.
At Thomas’s request, Garvin asked Banks whether Langston 21 would serve as the non-profit needed by Thomas to receive the grant funds and forward money to Thomas. Banks agreed. Langston 21 then executed a grant agreement for $392,000 with a non-profit public-private partnership that got funding from the District government.
Thomas told Garvin that Team Thomas, an organization he controlled, would be a suitable organization to carry out the grant, which was for youth programs. However, neither Thomas nor Team Thomas was mentioned in the agreement with the public-private partnership.
In January, May, October and December of 2008, the public-private partnership issued quarterly grant payments to Langston 21 to fund youth sports activities. At or about the time of each check, Thomas directed Banks or Garvin to have Langston 21 issue checks to either Team Thomas or another organization, HLT Development, also controlled by Thomas.
Langston 21 received $392,000 in grant funds from the public-private partnership. From that grant money, Banks and Garvin issued checks to Team Thomas and HLT totaling $306,000.
In January 2008, a member of Thomas’s staff, acting on the Council member’s behalf, e-mailed budget paperwork for the grant to Garvin and an employee of the public-private partnership, as part of the process for the approval of funds to Langston 21. The budget paperwork contained false representations. Based on his review of this paperwork, and from other interactions with Thomas, Garvin determined in or about January 2008 that the grant agreement proposed by Thomas was not legitimate, and that Thomas intended to misappropriate for his personal benefit at least some of the money that would be passed through Langston 21.
At the time of the other payments, in May, October and December of 2008, Garvin did not believe that youth sporting events had been conducted to justify the distribution of the grant funds. Yet he, along with Banks, participated in the grant process and thereby concealed Thomas’s misappropriation of funds.
In addition, Banks knew that no D.C. youth were brought to the Langston golf course by Thomas to participate in grant-related activities. Sometime before October 2008, Banks determined that Thomas was not using the grant funds for their designated purposes. Yet he continued to deposit grant funds into Langton 21's bank account and then write checks to Team Thomas and HLT with the term “youth sports” or “learning center” on the memo lines.
Like Banks, Garvin did not report the improprieties to authorities. By continuing to obtain and receive grant payments, redistribute funds to Team Thomas and HLT, and otherwise participate in the scheme, Garvin and Banks helped to conceal Thomas’s actions.
In announcing the sentences, U.S. Attorney Machen, Assistant Director Parlave, and Special Agent in Charge Kelly commended the work of those who investigated the case for the FBI and IRS-CI. They also expressed appreciation to former Assistant U.S. Attorneys Courtney G. Saleski and Bridget M. Fitzpatrick, who earlier worked on the case, as well as Criminal Investigators Matthew Kutz, Mark Crawford and Melissa Matthews; Paralegal Specialists Tasha Harris, Diane Hayes, Shanna Hays, Lenisse Edloe and Monica Johnson, and Legal Assistant Krishawn Graham, all of the U.S. Attorney’s Office.
Finally, they acknowledged the efforts of Assistant U.S. Attorneys Jonathan W. Haray, James E. Smith, Ellen Chubin Epstein and Matthew Graves of the Fraud and Public Corruption Section in the U.S. Attorney’s Office for the District of Columbia, and Trial Attorney Peter Mason of the Public Integrity Section of the Department of Justice’s Criminal Division, who prosecuted the case.
13-103Two from Pine Ridge Plead Guilty to Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that Whitnee Eagle, 24, and Abraham Red Cloud, 31, both of Pine Ridge, South Dakota appeared before U.S. Magistrate Judge Veronica L. Duffy on March 12 (Eagle), and March 13 (Red Cloud), 2013 and pled guilty to a charge of Involuntary Manslaughter. The Magistrate Judge is expected to recommend their pleas be accepted by the District Court. The maximum penalty upon conviction is 8 years’ imprisonment and/or a $250,000 fine.
On June 26, 2012 at Pine Ridge, Eagle and Red Cloud, after drinking large quantities of alcohol, rolled over on their five-month-old son who was sleeping in the same bed, suffocating him. The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs Office of Justice Services. The case is being prosecuted by Assistant U.S. Attorney Eric Kelderman.
A presentence investigation was ordered and a sentencing date will be scheduled. Eagle and Red Cloud were remanded to the custody of the U.S. Marshal pending acceptance of their pleas and sentencing.
Two Buffalo men plead guilty to drug conspiracy and money launderingRead the Press Release
BUFFALO, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that two defendants associated with the LRGP Gang pleaded guilty to federal charges before U.S. District Judge Richard J. Arcara. Franklin Richards, 31, of Buffalo, N.Y., pleaded guilty to conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine. The charge carries a minimum penalty of 10 years in prison, a maximum of life, a $10,000,000 fine or both. Wilfred Wylie, 32, also of Buffalo, pleaded guilty to conspiracy to commit money laundering which is punishable by up to 20 years in prison, a $500,000 fine or both.
According to Assistant U.S. Attorney George C. Burgasser, who is handling the case, Franklin Richards supplied cocaine to the LRGP Gang which operates in the area of Lombard, Rother, Gibson and Playter Streets. Co-conspirator Wilfred Wylie was searched by security at the Buffalo Niagara International Airport and found with $112,00 in U.S. currency, money he intended to take to Houston, Texas for the purchase of cocaine. As a condition of their plea agreements, the two defendants will forfeit $219,000 in U.S. currency.
“This is certainly an important step in the Office’s ongoing prosecution of the LRGP case,” said U.S. Attorney Hochul. “Just two days ago, a federal grand jury handed up a superseding indictment naming the gang as a racketeering enterprise under federal law, and charging a total of 13 defendants with committing multiple acts of narcotics trafficking and violence as part of the enterprise’s and defendants’ activities. Today’s developments signify that this prosecution is moving forward at a rapid pace, while the investigation conducted by our law enforcement partners continues.”
The pleas are the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent in Charge Christopher M. Piehota.
Sentencing for the defendants is scheduled for June 26, 2013 at 12:30 p.m. before Judge Arcara.
Three men charged in seperate cases with gun chargesRead the Press Release
BUFFALO, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that a grand jury has indicted three defendants in separate cases on firearms charges.
According to Assistant U.S. Attorney George C. Burgasser, who is handling the cases, Kevin Zimmerman, 23, and his brother, Jeffrey Zimmerman, 29, both of Cheektowaga, N.Y., are charged in separate indictments with being an armed career criminal in possession of a firearm. The charge carries a mandatory minimum penalty of 15 years in prison. According to previously filed complaints, the brothers were in possession of stolen firearms after being convicted of violent felonies which they then sold to local gun shops.
In addition, Jesse Reidy, 27, of Delavan, N.Y., is charged with being a felon in possession of a firearm and ammunition. The charge carries a maximum penalty of 10 years.
According to a previously filed complaint, Reidy was on New York State parole for a felony conviction. The defendant fled after cutting off his electronic monitoring bracelet. In August 2012, law enforcement officers captured Reidy who was in possession of a firearms and more than 200 rounds of ammunition.“These cases demonstrate the commitment of this Office – working side by side with our law enforcement partners - to target for prosecution armed felons,” said U.S. Attorney Hochul. “While the Constitution certainly protects the right of law abiding citizens to keep and bear arms, those convicted of a felony forfeit that right.”
The indictments are the culmination of an investigation on the part of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Frank Christiano, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the U.S. Marshal’s Violent Felony Fugitive Task Force, under the direction of Marshal Charles Salina and the New York State Parole Division, under the direction of Commissioner Jeffrey Fischer.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Three Indicted on Drug and Counterfeit ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that three individuals from Rapid City, South Dakota were indicted by a federal grand jury for possession with intent to distribute marijuana and methamphetamine, and counterfeiting and forging obligations and securities of the United States.
Zachary Smith-Cline, age 31, and Sara Smith-Cline, age 32, were indicted on February 20, 2013 for possession with intent to distribute marijuana and methamphetamine, and counterfeiting and forging obligations and securities of the United States. David Marshall, age 36, was also indicted on February 20, 2013 for possession with intent to distribute marijuana, and counterfeiting and forging obligations and securities of the United States. The offenses occurred on February 3-4, 2013.
All the defendants appeared before U.S. Magistrate Judge Veronica L. Duffy on March 12, 2013 and pled not guilty to the indictment. Zachary and Sara Smith-Cline’s maximum penalty upon conviction is a term of not less than 5 or more than 40 years’ imprisonment and/or $5,000,000 fine. Marshall’s maximum penalty upon conviction is 20 years’ imprisonment and/or $250,000 fine. The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty.
The investigation is being conducted by the United States Secret Service, the Unified Narcotics Enforcement Team, the South Dakota Division of Criminal Investigation, and the Rapid City Police Department. Special Assistant U.S. Attorney Laura Shattuck and Assistant U.S. Attorney Eric Kelderman are prosecuting the case. The defendants were remanded to the custody of the U.S. Marshal. A trial date has not been set.
Three Family Members Sentenced for Stealing $3 Million from Armored CarRead the Press Release
After Decades of Living Off of Stolen Funds, Husband, Wife and Son Appear in Federal Court for SentencingPORTLAND, Ore. - On Wednesday, March 20, 2013, Archie Cabello, 65, Portland, Oregon, was sentenced by the Honorable Robert E. Jones in United States District Court, to twenty years in federal prison for his role in stealing $3 million from an Oregon Armored Services armored car he was driving on December 6, 2005. Cabello had previously pleaded guilty to conspiracy to commit bank larceny, possession of stolen bank funds, making false statements on credit applications, making and subscribing to a false income tax return, and money laundering.
Judge Jones also sentenced Cabello’s wife, Marian Cabello, age 60 and his son Vincent Cabello, 40, to fifteen months in prison each for their roles in the armored car theft scheme. Marian and Vincent Cabello had both previously pleaded guilty to conspiracy to commit bank fraud and conspiracy to commit money laundering. The three were ordered to pay restitution in the amount of $3,755,000 to the victims of the theft.
“The Cabello family spent many years planning and executing their scheme to steal from armored car businesses and banks,” said U.S. Attorney Amanda Marshall. “It is through the diligent efforts of our law enforcement partners, the FBI and the IRS, that these criminals were finally brought to justice.”
Archie Cabello had only very short periods of lawful employment since the late 1960s, and was persistently involved in theft and drug trafficking activity. Archie and Marian Cabello first stole $157,839 from an armored car in 1995 in Milwaukee, Wisconsin. Shortly thereafter, Archie Cabello recruited their son Vincent to participate in a scheme to commit another theft. In 1998, Vincent Cabello obtained employment as a vault guard in a commercial building. Thereafter, Archie and Vincent Cabello staged a heist in which Archie Cabello used a hat, a beard, and a BB gun as props and in which Vincent Cabello, posing as the victim, was hand and leg cuffed while Archie Cabello stole $730,000 in $20 bills. No one was charged in either the 1995 or the 1998 thefts.
The Cabellos moved to Portland in 1999, and Archie and Vincent Cabello got jobs with delivery or security companies. In early 2005, Archie Cabello left a better paying job in order to take a position with Oregon Armored Services as a driver of an armored truck. On December 6, 2005, Vincent Cabello received a call from Archie Cabello that they were going forward with their plan to steal money from the truck. Over seven million dollars in currency was on the armored car that day, including two shrink-wrapped bricks containing $1.5 million each in hundred dollar bills. Archie Cabello drove the armored car to a prearranged location and provided Vincent Cabello with access to the back of the truck. Vincent Cabello took the two shrink-wrapped bricks containing a total of $3 million. Archie Cabello then drove the armored truck several blocks away, handcuffed himself to the door, and flagged down a citizen to call the police. Meanwhile, Vincent Cabello drove the stolen money to a privately-owned safe deposit box company in Bellevue, Washington that Archie Cabello had rented.
Since December 2005, the three Cabellos spent about $1,000,000 of the stolen funds. They used more than 100 credit cards to pay living expenses, then used the stolen cash to pay their large credit card bills. Archie Cabello failed to report his $1.5 million share of the stolen funds on his 2005 income tax return. This omission resulted in additional taxes of over $500,000 owed by Archie Cabello to the IRS.
In February 2012, Vincent Cabello disclosed to the FBI and IRS the location of the remaining stolen money in Bellevue, Washington, as well as hiding places for money and keys to the safe-deposit box located in the Cabello home. Government agents seized nearly $2 million of the money the Cabellos had hidden in the safe deposit box and in consumer product containers modified with false bottoms.
“Most American families get by with hard work and sacrifice. The Cabellos, on the other hand, spent years scamming the system, stealing millions of dollars to pay their bills,” said Greg Fowler, Special Agent in Charge of the FBI. “Now, they are rightly being held accountable for their crimes thanks to the great partnership between the FBI and IRS.”
“Most criminals steal money because they want to spend money. The problem with spending stolen money is that it leaves a trail despite the criminal’s best efforts to hide their tracks,” said Steven J. Bellis, Assistant Special Agent in Charge of IRS Criminal Investigation in the Pacific Northwest. “The problem with leaving a trail, for criminals, is that the Special Agents of IRS Criminal Investigation excel at following the money and are committed to working with our law enforcement partners to ensure that criminals are apprehended and held responsible for their actions.”
Archie Cabello was first arrested in December 2010, released, and arrested again in February 2012 for violating the terms of his release. He has been in custody since that time.
The case was jointly investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation, and Assistant U.S. Attorneys Thomas Edmonds and Claire M. Fay prosecuted the case.
Sturgis Man Indicted for Illegal ReentryRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sturgis, South Dakota man was indicted by a federal grand jury for illegally reentering the United States after having been previously deported.
Carlos Jimenez-Burgos, 28, was indicted on March 6, 2013 for Illegal Reentry After Deportation. He appeared before U.S. Magistrate Judge Veronica L. Duffy on March 8, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 2 years’ imprisonment and/or a $250,000 fine. The charge is merely an accusation and Jimenez-Burgos is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Immigration and Customs Enforcement. Assistant U.S. Attorney Eric Kelderman is prosecuting the case. Jimenez-Burgos was remanded to the custody of the U.S. Marshal. A trial date has not been set.
St. Francis Man Sentenced for Simple AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota man convicted of Simple Assault was sentenced on March 19, 2013 by U.S. District Judge Roberto A. Lange. Jonathan Mark Blindman, age 31, was sentenced to 6 months custody, with credit for time served, and a $10 special assessment to the Victim Assistance Fund.
Blindman was indicted by a federal grand jury on September 19, 2012, and was found guilty of one count of simple assault at a jury trial on March 6, 2013.
The conviction stems from an incident that took place on August 22, 2012, when Blindman assaulted the victim.
The investigation was conducted by the Federal Bureau of Investigation and Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S Attorney Marie H. Ruettgers.
Blindman was released from custody.
Southern Pines, North Carolina, Tobacco Warehouseman/broker SentencedRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever III, sentenced JESSE RAY “TOMMY” FAULKNER, II, 54, to a total of 66 months imprisonment followed by 3 years supervised release. Restitution of $13,261,662.40 was also imposed.
U.S. Attorney Thomas G. Walker stated, “Today’s sentence reflects the harm committed on our community as a result of this massive multi-million dollar fraud scheme and should serve as a deterrent for tobacco brokers, warehousemen, and receiving station operators who are contemplating helping farmers sell hidden tobacco and file false claims.”
On October 30, 2012, a two-count Criminal Information was filed charging FAULKNER with conspiring to make false statements, to make material false statements, to commit mail and wire fraud and to structure financial transactions, all in violation of Title 18, United States Code, Section 371; and conspiracy to commit money laundering in violation of Title 18, United States Code, Section 1956(h). On December 10, 2012, FAULKNER pled guilty to the charges.
According to the Criminal Information and information provided in open court, FAULKNER, was an agent for Phillip Morris USA Inc., and operated as an independent tobacco broker. FAULKNER also operated independent tobacco receiving stations in Wilson, North Carolina. Through his tobacco receiving stations, FAULKNER bought and sold tobacco from farmers with cash or in nominee names to facilitate the farmers in hiding their production. The co-conspiring farmers would not report the sales of the “hidden” tobacco in connection with their federal crop insurance claims, thereby being paid for losses they did not suffer.
FAULKNER then resold the “hidden” tobacco to Phillip Morris USA. During the course of the conspiracy, FAULKNER sold or caused to be sold $5,181,816.90 worth of “hidden” flue-cured tobacco in North Carolina. During the course of the conspiracy, FAULKNER sold or caused to be sold $8,097,429.13 worth of “hidden” burley tobacco in Kentucky.
“This sentence will deter other agricultural businessmen from engaging in illegal business practices which facilitate fraud in the federal crop insurance program and other USDA programs. USDA-OIG is committed to preserving the integrity of USDA programs and safe guarding our tax dollars,” stated Karen Citizen-Wilcox, Special Agent in Charge of the Southeast Region, USDA-OIG-Investigations.
Special Agent in Charge Jeannine A. Hammett, IRS CI stated, "IRS - CI uses information received through the Bank Secrecy Act to ensure criminals do not use US financial systems to legitimize their illegal profits. Currency report information provides a paper trail or roadmap for investigations of financial crimes and illegal activities, including tax evasion, embezzlement, and money laundering."
Investigation of this case was conducted by the United States Department of Agriculture (USDA) - Office of Inspector General - Investigations, USDA - Risk Management Agency - Special Investigations Branch, and the Internal Revenue Service - Criminal Investigation. Assistant United States Attorney Banumathi Rangarajan is prosecuting the case.
Shipping Corporations to Pay $10.4 Million for Environmental Crimes on Four ShipsRead the Press Release
Two shipping firms based in Germany and Cyprus today pleaded guilty to felony obstruction of justice charges and violating the Act to Prevent Pollution from Ships related to the deliberate concealment of vessel pollution from four ships that visited U.S. ports in New Jersey, Delaware and Northern California, announced the Department of Justice Environment and Natural Resources Division, the U.S. Attorney’s Offices in New Jersey and Delaware, and the U.S. Coast Guard.
U.S. Attorney for the District of New Jersey Paul J. Fishman and U.S. Coast Guard Deputy Commander of the Delaware Bay Sector Capt. Todd Wiemers announced the plea agreement – which includes a $10.4 million penalty, $2.6 million of which will be used address environmental damage caused by Hurricane Sandy – at a press conference in Newark, N.J.
According to a multi-district plea agreement arising out of charges brought in the District of New Jersey and District of Delaware, Columbia Shipmanagement (Deutschland) GmbH (CSM-D), a German corporation, and Columbia Shipmanagement Ltd. (CSM-CY), a Cypriot company, have agreed to pay a $10.4 million penalty and be placed on probation for four years. During probation, the companies will be subject to the terms of an environmental compliance program that requires outside audits by an independent company and oversight by a court appointed monitor. The shipping firms admitted that four of their ships (three oil tankers and one container ship) had intentionally bypassed required pollution prevention equipment and falsified the oil record book, a required log regularly inspected by the U.S. Coast Guard. The case is the largest vessel pollution settlement in either New Jersey or Delaware. The guilty pleas were entered before U.S. District Judge Susan D. Wigenton in Newark federal court. Sentencing is set for June 24, 2013.
“Deliberate pollution and intentional falsification of ship records to hide environmental crimes are serious offenses. These reprehensible actions not only damage the marine environment, but also put law breakers at a competitive advantage over those who respect the law and play the by rules” said Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “We intend to send a message with these prosecutions that those engaged in deliberate despoiling of our precious natural resources will be vigorously prosecuted.”
“We in New Jersey are as sensitive as anyone to the need to preserve the shoreline,” said U.S. Attorney for the District of New Jersey Paul J. Fishman. “Shipping companies who foul the water by deliberately discharging oil and lying about it to the Coast Guard can expect to be prosecuted.”
“This prosecution is a fine example of multi-district cooperation in enforcing federal environmental law and achieving a just sentence,” said U.S. Attorney for the District of Delaware Charles M. Oberly III.”
“This was a case of wilful pollution and deliberate falsification of records designed to deceive the Coast Guard,” said Captain David Fish, Chief of Investigations for the Coast Guard. “It takes both resources and a culture of compliance to abide by the law. We are hopeful that the remedial measures required as part of this criminal conviction will have a positive impact on these companies and serve as a message to other maritime companies as to what is expected.” The proposed $10.4 million penalty includes $2.6 million in organizational community service payments to assist the coastal maritime environment in New Jersey and Delaware damaged by Hurricane Sandy. The plea agreement directs the funds to environmental projects that will be selected by the National Fish & Wildlife Foundation to help conserve, preserve, and restore the coastal environment of New Jersey and Delaware hit by Hurricane Sandy.
The investigation into the M/T King Emerald was launched on May 7, 2012, after several crew members provided cell phone photos and other evidence to Coast Guard officers conducting a routine inspection. The King Emerald was engaged in various types of illegal discharges of bilge waste dating back to at least 2010. In pleading guilty, the defendants admitted that illegal discharges of both sludge and oily bilge waste were discharged at night off the coast of Central America, including a discharge within the Exclusive Economic Zone of Costa Rica where a national park is located. The ship’s second engineer pleaded guilty previously and will be sentenced in Newark on April 3, 2013.
The Delaware investigation began in October 2012, after several crew members of the M/T Nordic Passat provided the Coast Guard with a thumb drive containing photographs and video showing how illegal discharges had been sent overboard through the ship’s sewage system. They also alleged that sludge had been put into the ship’s cargo tanks and that logs showing sludge had been incinerated onboard had been falsified. The charges involving the M/V Cape Maas stem from a whistleblower report to the Coast Guard when the ship visited the port in San Francisco. He provided a video showing the operation of the oily water separator pumping overboard without the use of the oil content monitor to detect and prevent oil from being illegally discharged.
Just two weeks prior to today’s plea, the defendants and their attorneys disclosed violations on a fourth ship, the M/T Cape Taft that was then anchored in New York waters and destined for New Jersey. After the ship disclosed problems to the company, an internal investigation revealed that the ship’s oily water separator had been used improperly for some time. Instead of sensing a sample of overboard discharges, it was instead flushed with fresh water by the crew. The ship’s oil record book was revised by CSM-D to reveal 16 instances where it was false. The defendants cooperated with the investigation and provided the government with video replays of the oil content monitor showing when the crew had “tricked” the sensor with fresh water.
In pleading guilty, the defendants have admitted the following in a detailed joint factual statement filed in court:
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The King Emerald oil tanker used three different methods to illegally dispose of oily bilge waste. In April 2012, approximately five tons of oily waste was discharged in the exclusive economic zone of Costa Rica approximately 45 miles from a national park.
-
At least three chief engineers and the second engineer were involved in illegal discharges and intentional falsification of the oil record book for the King Emerald. In one instance, the oily water separator was operated solely for the purpose of generating data on the ship’s electronic recording device to account for an illegal discharge that had already taken place.
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During the Coast Guard boarding in Carteret, N.J., the second engineer lied to inspectors and then hid a valve used to make illegal discharges in an overhead space on the ship.
-
Oil contaminated bilge waste was illegally pumped overboard from the M/T Nordic Passat on the orders of the chief engineer and second engineer with a portable pump and “magic hose” that was draped down three levels of the engine room to dump overboard through the sewage system.
-
Illegal discharges have been made from the M/T Nordic Passat since 2006 by “tricking” the sensor designed to detect oil with fresh water during overboard discharges on a regular and routine practice by or at the direction of the chief engineer and second engineer. As a result, virtually every discharge totaling approximately 2,000 tons of unmonitored and oil contaminated bilge waste were discharged into ocean waters illegally and in violation of MARPOL over at least a six year period and all of the corresponding entries in the oil record book were false.
-
During the Coast Guard boarding of the Nordic Passat, senior ship engineers lied to the Coast Guard and told lower level crew members to lie.
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On the M/V Cape Maas, a container ship, the manufacturer’s seal on the oil content monitor had been broken and fresh water had been used to trick the sensor.
The plea agreement sets forth the counts charged as to each defendant in each district including six counts involving three vessels in New Jersey and four counts involving one ship in Delaware. The guilty pleas include violations of the Act to Prevent Pollution from Ships for failing to maintain an accurate oil record book; obstruction of justice, and making false statements. The maximum penalty for each of these felony offenses is $500,000 or up to twice the gross gain or loss from the offense for a corporation.
This prosecution was made possible through the combined efforts of the U.S. Coast Guard Districts 1, 5 and 11, Coast Guard Sectors New York, Delaware Bay, and San Francisco, Coast Guard Investigative Service, Coast Guard Office of Maritime and International Law, and the Coast Guard Office of Investigations and Analysis. The cases were prosecuted by Richard A. Udell, Senior Trial Attorney, and Stephen Da Ponte, Trial Attorney, of the Environmental Crimes Section of the U.S. Department of Justice Environment and Natural Resources Division, Kathleen O’Leary, Assistant U.S. Attorney in New Jersey, and Edmond Falgowski, Assistant U.S. Attorney in Delaware. Assistance was also provided by the U.S. Attorney’s Office for the Northern District of California.
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Shipping Corporations to Pay $10.4 Million for Environmental Crimes on Four ShipsRead the Press Release
$2.6 Million Will Go To Projects to Aid Coastal
Environment Hit by Hurricane SandyWASHINGTON – Two shipping firms based in Germany and Cyprus today pleaded guilty to felony obstruction of justice charges and violating the Act to Prevent Pollution from Ships related to the deliberate concealment of vessel pollution from four ships that visited ports in Delaware, New Jersey, and Northern California, the U.S. Attorney’s Offices in Delaware, New Jersey and, the Department of Justice Environment and Natural Resources Division and the U.S. Coast Guard announced.
U.S. Attorney for the District of New Jersey Paul J. Fishman and U.S. Coast Guard Deputy Commander of the Delaware Bay Sector Capt. Todd Wiemers announced the plea agreement – which includes a $10.4 million penalty, $2.6 million of which will be used to address environmental damage caused by Hurricane Sandy – at a press conference in Newark.
According to a multi-district plea agreement arising out of charges brought in the District of Delaware and District of New Jersey, Columbia Shipmanagement (Deutschland) GmbH (CSM-D), a German corporation, and Columbia Shipmanagement Ltd. (CSM-CY), a Cypriot company, have agreed to pay a $10.4 million penalty and be placed on probation for four years. During probation, the companies will be subject to the terms of an environmental compliance program that requires outside audits by an independent company and oversight by a court appointed monitor. The shipping firms admitted that four of their ships (three oil tankers and one container ship) had intentionally bypassed required pollution prevention equipment and falsified the oil record book, a required log regularly inspected by the U.S. Coast Guard. The case is the largest vessel pollution settlement in either Delaware and New Jersey. The guilty pleas were entered before U.S. District Judge Susan D. Wigenton in Newark federal court.
“This prosecution is a fine example of multi-district cooperation in enforcing federal environmental law and achieving a just sentence,” U.S. Attorney for the District of Delaware Charles M. Oberly III said.
“Deliberate pollution and intentional falsification of ship records to hide environmental crimes are serious offenses. These reprehensible actions not only damage the marine environment, but also put law breakers at a competitive advantage over those who respect the law and play by the by rules,” said Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “We intend to send a message with these prosecutions that those engaged in deliberate despoiling of our precious natural resources will be vigorously prosecuted.”
“We in New Jersey are as sensitive as anyone to the need to preserve the shoreline,” U.S. Attorney Fishman said. “Shipping companies who foul the water by deliberately discharging oil and lying about it to the Coast Guard can expect to be prosecuted.”
“This was a case of willful pollution and deliberate falsification of records designed to deceive the Coast Guard,” said Captain David Fish, Chief of Investigations for the Coast Guard. “It takes both resources and a culture of compliance to abide by the law. We are hopeful that the remedial measures required as part of this criminal conviction will have a positive impact on these companies and serve as a message to other maritime companies as to what is expected.”
According to documents filed in this case and statements made in court:
The $10.4 million penalty includes $2.6 million in organizational community service payments to assist the coastal maritime environment in New Jersey and Delaware damaged by Hurricane Sandy. The plea agreement directs the funds to environmental projects that will be selected by the National Fish & Wildlife Foundation to help conserve, preserve and restore the coastal environment of New Jersey and Delaware hit by Hurricane Sandy.
The investigation into the M/T King Emerald was launched on May 7, 2012, after several crew members provided cell phone photos and other evidence to Coast Guard officers conducting a routine inspection. The King Emerald was engaged in various types of illegal discharges of bilge waste dating back to at least 2010. The defendants admitted that illegal discharges of both sludge and oily bilge waste were discharged at night off the coast of Central America, including a discharge within the Exclusive Economic Zone of Costa Rica where a national park is located. The ship’s second engineer pleaded guilty previously and will be sentenced in Newark on April 3, 2013.
The Delaware investigation began in October 2012, after several crew members of the M/T Nordic Passat provided the Coast Guard with a thumb drive containing photographs and video showing how illegal discharges had been sent overboard through the ship’s sewage system. They also alleged that sludge had been put into the ship’s cargo tanks and that logs showing sludge had been incinerated onboard had been falsified. The charges involving the M/V Cape Maas stem from a whistleblower report to the Coast Guard when the ship visited the port in San Francisco. He provided a video showing the operation of the oily water separator pumping overboard without the use of the oil content monitor to detect and prevent oil from being illegally discharged.
Just two weeks prior to today’s plea, the defendants and their attorneys disclosed violations on a fourth ship, the M/T Cape Taft that was then anchored in New York waters and destined for New Jersey. After the ship disclosed problems to the company, an internal investigation revealed that the ship’s oily water separator had been used improperly for some time. Instead of sensing a sample of overboard discharges, it was instead flushed with fresh water by the crew. The ship’s oil record book was revised by CSM-D to reveal 16 instances where it was false. The defendants cooperated with the investigation and provided the government with video replays of the oil content monitor showing when the crew had “tricked” the sensor with fresh water.
In pleading guilty, the defendants have admitted the following in a detailed joint factual statement filed in Court:
• The King Emerald oil tanker used three different methods to illegally dispose of oily bilge waste. In April 2012, approximately five tons of oily waste was discharged in the exclusive economic zone of Costa Rica approximately 45 miles from a national park.
• At least three chief engineers and the second engineer were involved in illegal discharges and intentional falsification of the oil record book for the King Emerald. In one instance, the oily water separator was operated solely for the purpose of generating data on the ship’s electronic recording device to account for an illegal discharge that had already taken place.
• During the Coast Guard boarding in Carteret, N.J., the second engineer lied to inspectors and then hid a valve used to make illegal discharges in an overhead space on the ship.
• Oil contaminated bilge waste was illegally pumped overboard from the M/T Nordic Passat on the orders of the chief engineer and second engineer with a portable pump and “magic hose” that was draped down three levels of the engine room to dump overboard through the sewage system.
• Illegal discharges have been made from the M/T Nordic Passat since 2006 by “tricking” the sensor designed to detect oil with fresh water during overboard discharges on a regular and routine practice by or at the direction of the chief engineer and second engineer. As a result, virtually every discharge totaling approximately 2,000 tons of unmonitored and oil contaminated bilge waste were discharged into ocean waters illegally and in violation of MARPOL over at least a six-year period, and all of the corresponding entries in the oil record book were false.
• During the Coast Guard boarding of the Nordic Passat, senior ship engineers lied to the Coast Guard and told lower level crew members to lie.
• On the M/V Cape Maas, a container ship, the manufacturer’s seal on the oil content monitor had been broken and fresh water had been used to trick the sensor.
The plea agreement sets forth the counts charged as to each defendant in each district including six counts involving three vessels in New Jersey and four counts involving one ship in Delaware. The guilty pleas include violations of the Act to Prevent Pollution from Ships for failing to maintain an accurate oil record book, obstruction of justice and making false statements. The maximum penalty for each of these felony offenses is $500,000 or up to twice the gross gain or loss from the offense for a corporation.
This prosecution was made possible through the combined efforts of the U.S. Coast Guard Districts 1, 5 and 11; Coast Guard Sectors New York, Delaware Bay, and San Francisco; Coast Guard Investigative Service, Coast Guard Office of Maritime and International Law; and Coast Guard Office of Investigations and Analysis.
The government is represented by Edmond Falgowski, Assistant U.S. Attorney in Delaware; Kathleen P. O’Leary, Assistant U.S. Attorney in the Criminal Division in New Jersey; Richard A. Udell, Senior Trial Attorney, and Stephen Da Ponte, Trial Attorney, of the Environmental Crimes Section of the U.S. Department of Justice Environment and Natural Resources Division. Assistance was also provided by the U.S. Attorney’s Office for the Northern District of California.
Shipping Corporations to Pay $10.4 Million for Environmental Crimes on Four ShipsRead the Press Release
$2.6 Million Will Go To Projects to Aid Coastal Environment Hit by Hurricane Sandy
WASHINGTON – Two shipping firms based in Germany and Cyprus today pleaded guilty to felony obstruction of justice charges and violating the Act to Prevent Pollution from Ships related to the deliberate concealment of vessel pollution from four ships that visited ports in New Jersey, Delaware and Northern California, the U.S. Attorney’s Offices in New Jersey and Delaware, the Department of Justice Environment and Natural Resources Division and the U.S. Coast Guard announced.
U.S. Attorney for the District of New Jersey Paul J. Fishman and U.S. Coast Guard Deputy Commander of the Delaware Bay Sector Capt. Todd Wiemers announced the plea agreement – which includes a $10.4 million penalty, $2.6 million of which will be used to address environmental damage caused by Hurricane Sandy – at a press conference in Newark.
According to a multi-district plea agreement arising out of charges brought in the District of New Jersey and District of Delaware, Columbia Shipmanagement (Deutschland) GmbH (CSM-D), a German corporation, and Columbia Shipmanagement Ltd. (CSM-CY), a Cypriot company, have agreed to pay a $10.4 million penalty and be placed on probation for four years. During probation, the companies will be subject to the terms of an environmental compliance program that requires outside audits by an independent company and oversight by a court appointed monitor. The shipping firms admitted that four of their ships (three oil tankers and one container ship) had intentionally bypassed required pollution prevention equipment and falsified the oil record book, a required log regularly inspected by the U.S. Coast Guard. The case is the largest vessel pollution settlement in either New Jersey and Delaware. The guilty pleas were entered before U.S. District Judge Susan D. Wigenton in Newark federal court.
“We in New Jersey are as sensitive as anyone to the need to preserve the shoreline,” U.S. Attorney Fishman said. “Shipping companies who foul the water by deliberately discharging oil and lying about it to the Coast Guard can expect to be prosecuted.”
“Deliberate pollution and intentional falsification of ship records to hide environmental crimes are serious offenses. These reprehensible actions not only damage the marine environment, but also put law breakers at a competitive advantage over those who respect the law and play by the by rules,” said Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “We intend to send a message with these prosecutions that those engaged in deliberate despoiling of our precious natural resources will be vigorously prosecuted.”
“This prosecution is a fine example of multi-district cooperation in enforcing federal environmental law and achieving a just sentence,” U.S. Attorney for the District of Delaware Charles M. Oberly III said.
“This was a case of wilful pollution and deliberate falsification of records designed to deceive the Coast Guard,” said Captain David Fish, Chief of Investigations for the Coast Guard. “It takes both resources and a culture of compliance to abide by the law. We are hopeful that the remedial measures required as part of this criminal conviction will have a positive impact on these companies and serve as a message to other maritime companies as to what is expected.”
According to documents filed in this case and statements made in court: The $10.4 million penalty includes $2.6 million in organizational community service payments to assist the coastal maritime environment in New Jersey and Delaware damaged by Hurricane Sandy. The plea agreement directs the funds to environmental projects that will be selected by the National Fish & Wildlife Foundation to help conserve, preserve and restore the coastal environment of New Jersey and Delaware hit by Hurricane Sandy.
The investigation into the M/T King Emerald was launched on May 7, 2012, after several crew members provided cell phone photos and other evidence to Coast Guard officers conducting a routine inspection. The King Emerald was engaged in various types of illegal discharges of bilge waste dating back to at least 2010. The defendants admitted that illegal discharges of both sludge and oily bilge waste were discharged at night off the coast of Central America, including a discharge within the Exclusive Economic Zone of Costa Rica where a national park is located. The ship’s second engineer pleaded guilty previously and will be sentenced in Newark on April 3, 2013.
The Delaware investigation began in October 2012, after several crew members of the M/T Nordic Passat provided the Coast Guard with a thumb drive containing photographs and video showing how illegal discharges had been sent overboard through the ship’s sewage system. They also alleged that sludge had been put into the ship’s cargo tanks and that logs showing sludge had been incinerated onboard had been falsified. The charges involving the M/V Cape Maas stem from a whistleblower report to the Coast Guard when the ship visited the port in San Francisco. He provided a video showing the operation of the oily water separator pumping overboard without the use of the oil content monitor to detect and prevent oil from being illegally discharged.
Just two weeks prior to today’s plea, the defendants and their attorneys disclosed violations on a fourth ship, the M/T Cape Taft that was then anchored in New York waters and destined for New Jersey. After the ship disclosed problems to the company, an internal investigation revealed that the ship’s oily water separator had been used improperly for some time. Instead of sensing a sample of overboard discharges, it was instead flushed with fresh water by the crew. The ship’s oil record book was revised by CSM-D to reveal 16 instances where it was false. The defendants cooperated with the investigation and provided the government with video replays of the oil content monitor showing when the crew had “tricked” the sensor with fresh water.
In pleading guilty, the defendants have admitted the following in a detailed joint factual statement filed in Court: • The King Emerald oil tanker used three different methods to illegally dispose of oily bilge waste. In April 2012, approximately five tons of oily waste was discharged in the exclusive economic zone of Costa Rica approximately 45 miles from a national park.
• At least three chief engineers and the second engineer were involved in illegal discharges and intentional falsification of the oil record book for the King Emerald. In one instance, the oily water separator was operated solely for the purpose of generating data on the ship’s electronic recording device to account for an illegal discharge that had already taken place.
• During the Coast Guard boarding in Carteret, N.J., the second engineer lied to inspectors and then hid a valve used to make illegal discharges in an overhead space on the ship.
• Oil contaminated bilge waste was illegally pumped overboard from the M/T Nordic Passat on the orders of the chief engineer and second engineer with a portable pump and “magic hose” that was draped down three levels of the engine room to dump overboard through the sewage system.
• Illegal discharges have been made from the M/T Nordic Passat since 2006 by “tricking” the sensor designed to detect oil with fresh water during overboard discharges on a regular and routine practice by or at the direction of the chief engineer and second engineer. As a result, virtually every discharge totaling approximately 2,000 tons of unmonitored and oil contaminated bilge waste were discharged into ocean waters illegally and in violation of MARPOL over at least a six-year period, and all of the corresponding entries in the oil record book were false.
• During the Coast Guard boarding of the Nordic Passat, senior ship engineers lied to the Coast Guard and told lower level crew members to lie.
• On the M/V Cape Maas, a container ship, the manufacturer’s seal on the oil content monitor had been broken and fresh water had been used to trick the sensor.
The plea agreement sets forth the counts charged as to each defendant in each district including six counts involving three vessels in New Jersey and four counts involving one ship in Delaware. The guilty pleas include violations of the Act to Prevent Pollution from Ships for failing to maintain an accurate oil record book, obstruction of justice and making false statements. The maximum penalty for each of these felony offenses is $500,000 or up to twice the gross gain or loss from the offense for a corporation.
This prosecution was made possible through the combined efforts of the U.S. Coast Guard Districts 1, 5 and 11; Coast Guard Sectors New York, Delaware Bay, and San Francisco; Coast Guard Investigative Service, Coast Guard Office of Maritime and International Law; and Coast Guard Office of Investigations and Analysis.
The government is represented by Kathleen P. O’Leary, Assistant U.S. Attorney in the Criminal Division in New Jersey; Richard A. Udell, Senior Trial Attorney, and Stephen Da Ponte, Trial Attorney, of the Environmental Crimes Section of the U.S. Department of Justice Environment and Natural Resources Division; and Edmond Falgowski, Assistant U.S. Attorney in Delaware. Assistance was also provided by the U.S. Attorney’s Office for the Northern District of California.
13-134
Defense counsel: Thomas L. Mills Esq., Washington, D.C.
New Jersey Information
Delaware Information
Columbia Joint Factual Statement
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Photo 4Sharps Corner Woman Pleads Guilty to TheftRead the Press Release
United States Attorney Brendan V. Johnson announced that Doreen Two Bulls, a/k/a Doreen Brown, a/k/a Dee Dee Brown, age 53, of Sharps Corner, South Dakota appeared before U.S. Magistrate Judge Veronica L. Duffy on March 13, 2013 and pled guilty to Theft From Indian Tribal Organization. The Magistrate Judge is expected to recommend Two Bulls plea be accepted by the District Court. The maximum penalty upon conviction is 5 years' imprisonment and/or a $250,000 fine.
Between August 2010 and January 2011, Two Bulls, an employee of an Indian Tribal Organization, stole checks issued to tribal organizations, put her name on them and then cashed for personal use. The investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Sarah B. Collins.
A presentence investigation was ordered and a sentencing date will be scheduled. The defendant was released on bond pending acceptance of the plea and sentencing.
Seventeen Peekskill, N.Y. Residents Charged in White Plains Federal Court with Narcotics and Firearms OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Eric Johansen, Chief of the Peekskill Police Department, and George N. Longworth, Commissioner of the Westchester County Department of Public Safety, today announced the unsealing of two separate Indictments and two Complaints charging 17 defendants with a series of crimes, including the distribution of narcotics and the use of firearms in Peekskill, New York. Fifteen of the defendants charged in the Indictments and one of the Complaints were arrested today or were previously taken into custody. Fourteen of those defendants were presented in White Plains federal court this afternoon before U.S. Magistrate Judge Lisa M. Smith. The 15th defendant, Kenyata Burnett, is in state custody, and is expected to appear in White Plains federal court next week. The two remaining defendants, Paul Lockett and Phillip Guzman, are still at large.
U.S. Attorney Preet Bharara stated: “Even small towns like Peekskill are not immune from the narcotics trade and the violence with which it is inextricably linked. With today’s charges against these 17 defendants who were allegedly responsible for visiting this plague on the community, we are taking an important step forward in returning Peekskill to its law-abiding residents.”
FBI Assistant Director-in-Charge George Venizelos stated: “Drug trafficking and the gun violence that inevitably comes with it are not only big-city problems. As this case and others have shown, these twin problems affect smaller cities and towns as well. The residents of all these communities have the right to safety and security in their homes, and we will continue to work to make that a reality.”
Peekskill Police Chief Eric Johansen stated: “These arrests send a clear message that drugs and violence are not tolerated anywhere in Peekskill. Our narcotics unit worked closely with the U.S. Attorney’s Office, the FBI, and the Westchester County Police to break up this violent drug ring. Our department will continue to set a high standard of performance and excellence to protect all of our citizens and businesses now and in years to come.”
Westchester County Department of Public Safety Commissioner George N. Longworth stated: “The Department of Public Safety remains firmly committed to working with all federal and local law enforcement partners to combat drug dealing in Westchester County. The Peekskill community is safer today because of the outstanding work of all of the agencies involved in this investigation.”
The following allegations are based on the Indictments unsealed today in White Plains federal court:
LORENZO WAGNER, JR. was the effective leader of a drug trafficking organization (the “Organization”), whose members and associates have, since January 2008, sold crack cocaine and heroin in Peekskill, New York. Organization members worked together to ensure that all members profited from drug sales. For a period of time in 2011 and 2012, the Organization operated out of apartments in the Dunbar Heights housing complex in Peekskill. Organization members and associates used those apartments to cook crack cocaine and to package, store, and resell drugs. At other times, the Organization operated out of other locations in Peekskill. In order to secure the Organization’s control of portions of the Peekskill narcotics trade, WAGNER, JR. ordered multiple shootings against rivals. These shootings were carried out by the Organization’s enforcers, including associates of the Organization who were paid to commit acts of violence against rivals.
Eight of the Organization’s members and associates – WAGNER, JR., 29, PHILLIP GUZMAN, 28, JUAN URENA, 23, STEFANO DEMICHELI, 25, JAMES PATTERSON, 27, MARQUISE ROBERSON, 24, MYRON WAGNER, 19, and LORENZO WAGNER, SR., 48 –are charged with conspiring to distribute, and possessing with intent to distribute, crack cocaine and heroin from January 2008 to March 2013. WAGNER, JR. and PATTERSON are also charged with using, carrying, possessing, and discharging firearms during the narcotics conspiracy. GUZMAN is charged with being a felon in possession of a firearm.
Seven other Peekskill residents are named in a second Indictment that charges four individuals – LAMAR KINGWOOD, 34, JAMEL BAILEY, 33, MELISSA DABBS, 43, and ISAAC MALLORY, 33 – with conspiring to distribute, and possessing with intent to distribute, crack cocaine and heroin from January 2008 to March 2013, and three individuals –
TYRON BRICKHOUSE, 28, KENYATA BURNETT, 37, and RONALD CARTER, 47 – with conspiring to distribute, and possess with intent to distribute, crack cocaine from at least November 2010 to March 2013. Two other individuals – HAKIM ANDERSON, 33, and PAUL LOCKETT, 32 – were charged in separate Complaints with conspiring to distribute, and possess with intent to distribute, crack cocaine.
The charges against each defendant and the corresponding maximum potential penalties are outlined in the charts attached to this press release.
Mr. Bharara praised the outstanding investigative work of the FBI, the Peekskill Police Department, and the Westchester County Department of Public Safety. He added that the investigation is continuing.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Douglas Bloom, Ilan Graff, and Sarah Krissoff are in charge of the prosecution.
The charges contained in the Indictments and Complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Click here to view chart(s)
U.S. v. Lamar Kingwood, et al. Indictment
U.S. v. Lorenzo Wagner, Jr. et al. Indictment
U.S. v. Paul Lockett Complaint
U.S. v. Hakim Anderson ComplaintSentences for March 15 - 21, 2013Read the Press Release
Michael Don Neely, 53, of Las Vegas, Nevada, was sentenced by Federal District Court Judge Alan B. Johnson on March 21, 2013, for being a felon in possession of a firearm and ammunition. Neely was arrested in Casper, Wyoming. He received 210 months of imprisonment, to be followed by five years of supervised release and was ordered to pay a $100.00 special assessment and a $200.00 fine. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Angel Hernandez-Escalante, aka Jose Gonzalez-Alvarez, 56, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on March 15, 2013, for illegal re-entry of a previously deported alien into the United States. Hernandez-Escalante was arrested in Jackson, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Serapio Alberto Casimiro-Ortiz, 25, of Guatemala, was sentenced by Federal District Court Judge Scott W. Skavdahl on March 15, 2013, for illegal re-entry of a previously deported alien into the United States. Casimiro-Ortiz was arrested in Gillette, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.