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21 March 2013
Jamestown Nurse arrested, charged with distributing oxycodoneRead the Press Release
BUFFALO, N.Y.---U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury returned a 17 count indictment charging Samilyn Olson, 46, of Jamestown, N.Y., with unlawfully distributing oxycodone, obtaining oxycodone through fraud, forgery and subterfuge and conspiring to do so. The conspiracy and distribution counts each carry a maximum sentence of 20 years in prison and a $1,000,000 fine. The remaining counts each carry a maximum sentence of four years in prison and a $250,000 fine.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that Olson is a former nurse at the Veterans Affairs Community Based Outpatient Clinic, in Jamestown provides medical services to VA patients in the area. On eight occasions between May and September 2010, the defendant stole prescription forms from a nurse practitioner at the clinic, forged the nurse practitioner’s name and wrote prescriptions for oxycodone. The prescriptions were then filled by Olson or others at a local pharmacy in Jamestown, New York.
The defendant made an initial appearance this afternoon before Magistrate Judge J. Jeremiah McCarthy and was released.
The Indictment is the result of an investigation on the part of the Veterans Affairs, Office of Inspector General, under the direction of Special Agent in Charge Jeffrey G. Hughes, Northeast Field Office, the Veterans Affairs Police Department, under the direction of Chief Michael Messina, and the Jamestown Police Department, under the direction of Chief Harry Snellings.
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.
Jacksonville Man Convicted of Attempting to Entice A Minor to Engage in Sexual ActivityRead the Press Release
Ocala, Florida - U.S. Attorney Robert E. O'Neill announces that a federal jury today found Michael A. Collier (48, Jacksonville) guilty of attempting to entice a child to engage in sexual activity. Collier faces a mandatory minimum penalty of 10 years in federal prison, up to a maximum penalty of life in federal prison. His sentencing hearing has not yet been set. Collier was indicted on October 31, 2012.
According to testimony and evidence presented at trial, Collier replied to an Internet posting that he thought was posted by a 13-year-old girl. After exchanging e-mails, text messages, and having cell phone conversations with the "13-year-old girl," Collier traveled more than an hour, from Orlando to Lake County, in order to have sex with her. Testimony revealed that Collier stopped at a convenience store and purchased condoms, beer, and cigarettes while on the way to meet the child. Unbeknownst to Collier, the individuals that he communicated with were undercover law enforcement officers. When Collier arrived at the home to have sex with the child he was arrested by deputies from the Lake County Sheriff's Office.
This case was investigated by the Lake County Sheriff's Office and the FBI as part of the Central Florida Internet Crimes Against Children Task Force. In addition, this specific operation included members of the Osceola County Sheriff's Office and Citrus County Sheriff's Office. It is being prosecuted by Assistant United States Attorney Shawn P. Napier.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. For more information about internet safety education, please visit www.projectsafechildhood.gov and click on the tab "other resources."
Jackson County Woman Pleads Guilty to Controlled Substance ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that Whisper Montileaux, age 30, of Potato Creek, South Dakota appeared before U.S. Magistrate Judge Veronica L. Duffy on March 13, 2013 and pled guilty to 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.
The charge relates to Montileaux conspiring with others to distribute at least 100 kilograms or more of marijuana in South Dakota between 2008 and 2012. The investigation was conducted by the Federal Bureau of Investigation, Northern Plains Safe Trails Drug Enforcement Task Force, South Dakota Division of Criminal Investigation, and Bureau of Indian Affairs Office of Justice Services. 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 sentencing.
Indictments Returned in Hammond Federal CourtRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ [email protected]
Hammond, Indiana—The United States Attorney’s Office announced that the following Indictments were returned on March 21, 2013:
Miguel Angel Herrera, 32, address unknown, was charged in an Indictment with distribution of cocaine.These charges were filed as the result of an investigation by the Federal Bureau of Investigation.This case has been assigned to and will be prosecuted by Special Assistant United States Attorney Armando Salinas, Jr.
Tareq Al-Hindi, 31, of Orland Park, Illinois, Azzam Al-Hindi, 55, of Blue, Island, Illinois and Hosam Abul-Husn, 67, of Whiting, Indiana were charged in an Indictment with conspiracy to commit mail fraud and mail fraud.These charges were filed as the result of an investigation by the United States Secret Service.This case has been assigned to and will be prosecuted by Assistant United States Attorney Randall Stewart.
Tambra Ducker, 24, of Indianapolis, Indiana, was charged in an Indictment with possession with the intent to distribute heroin.These charges were filed as the result of an investigation by the Drug Enforcement Administration.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Indian National Pleads Guilty to Obtaining False Worker Visas and Related OffensesRead the Press Release
CHARLOTTE, N.C. – An Indian national pleaded guilty in U.S. District Court on Wednesday, March 20, 2013, for his role in a conspiracy to violate U.S. laws by filing fraudulent immigration documents and related offenses, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
Brock D. Nicholson, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Georgia and the Carolinas and Richard L. Walker, Special Agent in Charge for the Atlanta, Georgia Region of the U.S. Department of Labor’s Office of Inspector General (DOL-OIG), Office of Racketeering and Fraud Investigations join U.S. Attorney Tompkins in making today’s announcement.
Phani Raju Bhima Raju, 41, of Charlotte, pleaded guilty to five federal charges ranging from conspiracy to violate U.S. laws to money laundering conspiracy for his participation in a fraudulent scheme to obtain false H-1B immigration visas for foreign workers. The H-1B visa program allows U.S. employers to temporarily employ foreign workers in designated specialty occupations.
According to filed court documents and yesterday’s plea hearing, beginning in 2006 and through November 2012, Raju executed a fraudulent scheme to defraud the United States by submitting materially false documents to obtain H-1B immigration visas for foreign nationals seeking employment in the U.S. According to filed documents and statements made in court, Raju was the president of iFuturistics, a Delaware company with headquarters in Pineville, N.C. Court records show that Raju and others falsely represented to the U.S. Department of Labor (“DOL”) and the Department of Homeland Security’s U.S. Citizenship and Immigration Services (“USCIS”) that iFuturistics was hiring H-1B visa holders to work directly for the company. Contrary to the statements made on DOL and USCIS forms submitted by iFuturistics, when the applicants were granted H-1B visas they were placed in work locations with various companies throughout the U.S. In fact, as court records show, iFuturistics had entered into lucrative contracts with staffing agencies prior to submitting the fraudulent forms claiming the skilled IT workers would be employed at iFuturistics’ headquarters in Pineville. Court documents show that as a result of Raju’s illegal visa scheme iFuturistics received $13.2 million as payment from staffing companies in the U.S.
As part of his plea agreement, Raju has admitted that he submitted false documentation to DOL and USCIS and that he made materially false statements on the relevant forms in order to obtain approval of the H-1B immigration visas. In addition to filing fraudulent paperwork, Raju and others engaged in an illegal scheme to recruit, solicit, entice and hire individuals outside the U.S. to apply for H-1B visas and to obtain work in the U.S. Court records show that Raju gave the H-1B visa applicants a “cheat sheet” of questions and answers to assist them during their interview process to obtain the H-1B visas.
Court records indicate that Raju and his co-conspirators at times failed to find employment for the H-1B visa workers the company had recruited to work in the U.S. On those occasions, court records indicate, these workers were “benched” in the U.S. while waiting for another job assignment. While they were benched, and contrary to the salary claims made in the application forms, these workers received little or no pay from iFuturistics. On one occasion, court documents show, a foreign national H-1B visa holder had paid $2,500 to iFuturistics as a security deposit for processing her H-1B visa. According to the contract between iFuturistics and the employee, the employee was promised an annual salary of $60,000 and had agreed to the company’s request to market her services for employment throughout the U.S. In the end, iFuturistics never provided the worker with any work assignments and failed to pay her any wages, court records show.
Filed documents also indicate that in November 2009, Raju and others attempted to hide their fraudulent activities from law enforcement and immigration agents during a scheduled inspection visit of the company’s Pineville offices. In anticipation of the visit, court documents show that Raju and others had set up work stations, moved in furniture and recruited several persons to pretend to be iFuturistics workers for the duration of the inspection visit, when, in fact, the office space prior to the site visit had been empty and unoccupied. When law enforcement and immigration agents returned to the company’s offices a month after the site visit, the office space was dark and unoccupied, as it had been prior to the planned inspection.
Raju was charged with and pleaded guilty to one count of conspiracy to violate United States laws, which carries a maximum prison term of five years and a $250,000 fine; one count of presenting fraudulent immigration documents, which carries a maximum prison term of 10 years and a $250,000 fine; one count of hiring at least 10 unauthorized aliens within a one year period, which carries a maximum prison term of five years and a $250,000 fine; one count of hiring recruiting, and referring for a fee for employment an unauthorized alien, which carries a maximum prison term of six months and a $100,000 fine; and one count of money laundering conspiracy, which carries a maximum term of 20 years in prison and a fine not to exceed the value of the funds involved. In addition, Raju has agreed to pay restitution to any victims harmed by his fraudulent conduct. The final restitution amount will be determined by the Court.
Raju has been in local federal custody since December 2012. A sentencing date has not been set.
The investigation was handled by ICE-HIS and DOL. The prosecution is being handled by Assistant U.S. Attorney Kenneth Smith of the U.S. Attorney’s Office in Charlotte.
Gretna Brothers Sentenced to Five Years for Their Role in Convenience Store ArsonRead the Press Release
WAEL HAMMAD, aged 38, and ALAA HAMMAD, age 31, both residents of Gretna, Louisiana, were sentenced today by U. S. District Judge Eldon E. Fallon for their involvement in the December 2011 arson of Fat City Discount, their convenience store located in Metairie, Louisiana, announced U. S. Attorney Dana Boente. Both men plead guilty on October 4, 2012, to conspiring to and destroying by fire their convenience store. Judge Fallon sentenced both defendants to five years imprisonment, one year of supervised release following imprisonment, and ordered $94,333.52 in restitution to their insurance company.
According to court records, the HAMMADs, faked an accidental fire in the kitchen area of their store and then filed an insurance claim for damages to their merchandise.
This case was investigated jointly by Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Jefferson Parish Fire Department and the Jefferson Parish Sherriff’s Office. The case was prosecuted by Tony Gordon Sanders of the Violent Crimes Unit.
Four Individuals Indicted for Health Care FraudRead the Press Release
SAN JUAN, P.R. – On March 14, 2013, a Federal grand jury returned a fourteen count-indictment against four individuals for conspiracy to commit health care fraud, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The investigation was led by the Department of Health and Human Services, Office of the Inspector General (HHS-OIG) and the Federal Bureau of Investigation (FBI).
According to the indictment, from on or about January 2007, until on or about March 2010, Olympic Medical Equipment (OME), a Durable Medical Equipment (DME) company authorized to do business in Arecibo, Puerto Rico, submitted and/or caused to be submitted at least one thousand one hundred and forty nine (1,149) false and fraudulent claims to Medicare totaling approximately one million three hundred thirty seven-thousand twenty eight dollars and ninety eight cents ($1,337,028.98) for DME that was not medically necessary, causing Medicare to disburse approximately seven hundred forty seven thousand four hundred sixty one dollars and 31 cents ($747,461.31) for such claims.
Defendant Jaime Sepúlveda-Concepción was the president of Olympic Medical Equipment. He owned and managed OME controlling the business activities to include submitting DME claims to Medicare on behalf of OME. He controlled Medicare payments received by OME and paid kickbacks to defendant Mario Reyes-Cruz based on the type of equipment ordered in the prescriptions and/or medical orders. Defendant Reyes-Cruz was an independent sales coordinator that brought to Sepúlveda-Concepción DME orders for Medicare beneficiaries. Defendant Edgar Cancel-Zapata was a physician licensed to practice medicine in Puerto Rico. Cancel-Zapata signed and completed for OME false: progress notes, prescriptions and/or medical orders, CMNs, and/or Statements of Ordering Physician, for Medicare beneficiaries that were billed by OME. Cancel-Zapata was paid kickbacks by Reyes-Cruz on behalf of OME, in exchange for signing and completing the false: progress notes, prescriptions and/or medical orders, CMNs, and/or Statements of Ordering Physician for OME.
Defendant Sonia Guzmàn-Silvagnoli was a physician licensed to practice medicine in Puerto Rico. Guzmàn-Silvagnoli signed and completed for OME false: progress notes, prescriptions and/or medical orders, CMNs, and/or Statements of Ordering Physician, for Medicare beneficiaries that were billed by OME. She was paid kickbacks by Reyes-Cruz on behalf of OME, in exchange for signing and completing the false: progress notes, prescriptions and/or medical orders, CMNs, and/or Statements of Ordering Physician for OME.
The object of the unlawful conspiracy was that defendants Jaime Sepúlveda-Concepción, Mario Reyes-Cruz, and Edgar Cancel-Zapata unlawfully enriched themselves submitting and/or causing to be submitted false and fraudulent claims to Medicare and/or by falsely and fraudulently representing that the medical conditions of the Medicare beneficiaries were such that DME, including spinal orthosis: TLSO and LSO; wheelchair options/accessories; therapeutic shoes for persons with diabetes; hospital beds and accessories; pressure reducing support surfaces-group 1; wheelchair seating; knee orthosis; power mobility devices; heating pads and heat lamps; powered pressure-reducing air mattress; separate seat lift mechanism; and elbow orthosis, were medically necessary when in fact the defendants well knew the beneficiaries were never examined and did not suffer from such medical conditions and did not qualify to receive the DME.
“As part of the nation’s health care system, Medicare serves vulnerable populations,” said United States Attorney, Rosa Emilia Rodríguez-Vélez. “Today’s arrests by HHS-OIG agents and our law enforcement partners show that we will not tolerate criminals who engage in fraudulent schemes which deplete the Medicare program of funds which are destined for our elderly population, in order to enrich themselves.”“We are proud to be a part of the federal team that brought these defendants to justice for defrauding the Medicare program and exploiting the elderly," said Thomas O'Donnell, Special Agent in Charge of the Office of Inspector General's New York Regional Office which also covers Puerto Rico. "Arresting owners and providers, freezing their assets and prosecuting them to the fullest extent possible, are some of the tools that the federal government has available, and will be utilized to remove these individuals from participating in the Medicare program.”
“Health Care fraud is a priority for the FBI and we will continue to attack it vigorously, in partnership with the Office of Inspector General (OIG) U.S. Department of Health and Human Services (HHS), and the United States Attorney's Office (USAO), District of Puerto Rico. Consequences of Health Care Fraud include higher health insurance costs paid for by the taxpayers,” stated Carlos Cases, Special Agent in Charge of the Federal Bureau of Investigation, San Juan Field Office.
The case is being prosecuted by Assistant U.S. Attorney Héctor Ramírez-Carbó, Health Care Fraud Coordinator and Special Assistant U.S. Attorney Wallace A. Bustelo. If found guilty, the defendants could face a possible sentence of (10) years in prison for the Health Care Fraud offense and a fine of up to $250,000. A criminal indictment contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
Former Shipping Executive Indicted for Role in Price-Fixing <br /> Conspiracy Involving Coastal Freight Services Between the <br /> Continental United States and Puerto RicoRead the Press Release
A federal grand jury in San Juan, Puerto Rico, has returned an indictment against Thomas Farmer, a former executive of Jacksonville, Fla.-based Crowley Liner Services, for participating in a conspiracy to fix rates and surcharges for freight transported by water between the continental United States and Puerto Rico, the Department of Justice announced today.The indictment, filed today in the U.S. District Court in San Juan, charges Farmer, the former vice president of price and yield management of Crowley, with conspiring with co-conspirators to suppress and eliminate competition by agreeing to fix rates and surcharges for Puerto Rico freight services from at least as early as mid-2005 until at least April 2008.
Crowley transports a variety of cargo shipments, such as heavy equipment, perishable food items, medicines and consumer goods, on scheduled ocean voyages between the continental United States and Puerto Rico.
The indictment alleges, among other things, that Farmer and co-conspirators carried out the conspiracy by attending meetings and engaging in conversations and communications in the continental United States and Puerto Rico to fix, stabilize and maintain rates and surcharges for Puerto Rico freight services; to allocate customers of Puerto Rico freight services between and among the conspirators; and to rig bids submitted to customers of Puerto Rico freight services.
“Today’s indictment charges this executive with participating in a price-fixing conspiracy that affected the cost of shipping many consumer goods to Puerto Rico,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The division will continue to vigorously pursue individuals who engage in anticompetitive behavior.”
Farmer is charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.As a result of this ongoing investigation, three companies, including Crowley, and six individuals have pleaded guilty or been convicted at trial. Five of the individuals and the three companies have been ordered to serve sentences ranging from seven months to four years in prison and to pay more than $46 million in criminal fines. The sixth individual, Frank Peake, was convicted at trial in January 2013 and is currently scheduled to be sentenced on May 31, 2013.
This case is part of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the coastal water freight transportation industry, which is being conducted by the Antitrust Division’s National Criminal Enforcement Section; the Baltimore Resident Agency of the Department of Defense’s Office of the Inspector General, Defense Criminal Investigative Service (DCIS); the Miami Field Office of the Department of Transportation’s Office of Inspector General; and the Jacksonville Field Office of the FBI. Anyone with information concerning anticompetitive conduct in the coastal water freight transportation industry is urged to call the Antitrust Division’s National Criminal Enforcement Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.htm or contact DCIS’s Baltimore Resident Agency at 410-347-1620.Former Orleans Parish Deputy, Gerard J. Hoffman, Jr., Pleads Guilty to Conspiracy to Commit BriberyRead the Press Release
GERARD J. HOFFMAN, JR., 59, a resident of Mandeville, Louisiana, pled guilty today before U.S. District Judge Jane Triche Milazzo to conspiracy to commit bribery, announced U.S. Attorney Dana J. Boente.
According to the factual basis, HOFFMAN, the former head of the maintenance department at the Orleans Parish Sheriff’s Office (“OPSO”), began receiving things of value from a contractor, identified as Businessman B, in exchange for a rigged bidding system employed to steer OPSO work to Businessman B. In particular, from 2007 through 2011, Businessman B would submit bids for OPSO work in the name of his respective company but, with the knowledge and participation of, among others, HOFFMAN, would also submit phony or fake bids for these same projects in the names of other local companies, in an effort to give the appearance of a competitive bidding process. In many cases, the phony bids would intentionally be higher than the bids from Businessman B and, consequently, the OPSO work would be awarded, with HOFFMAN’s participation and knowledge, to Businessman B.
In exchange for this rigged bidding process, according to court documents, HOFFMAN received several things of value from Businessman B. For example, from 2007 through 2011, HOFFMAN received a trailer, a storage container, and free maintenance and construction work at a house owned by HOFFMAN, all at no cost to him. In total, HOFFMAN received at least $5,000, but less than $10,000 in things of value from Businessman B in exchange for HOFFMAN’s official acts at the OPSO.
HOFFMAN faces a maximum penalty of five years imprisonment, three years supervised release, a $250,000 fine, and a $100 special assessment. Sentencing has been scheduled for June 20, 2013.
(Download Factual Basis )
Former Marine Sentenced to Ten Years for Child Exploitation CrimeRead the Press Release
TALLAHASSEE, FLORIDA – Today, Kevin Lee Butler, 23, of Quincy, Florida, was sentenced to ten years in federal prison for using the internet in an attempt to entice a minor to engage in sexual activity. The sentence was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
In October 2011, Butler replied to an internet ad posted as part of an undercover investigation conducted by the North Florida Internet Crimes Against Children (“ICAC”) Task Force. The ad purported to be from a “single mom” of a 12 year-old girl. Butler exchanged a series of emails with the undercover agent who was posing as the child’s mother. During the course of the exchanges, Butler made arrangements to travel to Tallahassee for the purpose of having sex with the 12 year old. When he arrived at the meeting place, he was arrested.
Butler pled guilty to this offense in January. As part of Butler’s sentence, United States District Judge Robert L. Hinkle also imposed a life time term of supervised release, with the conditions that Butler attend sex offender treatment, that he register as a sex offender, and that his computers, and other electronic devices be subject to search by his probation officer and by law enforcement.
United States Attorney Marsh credited the success of this prosecution to the joint efforts of the agencies participating in the North Florida ICAC, particularly Homeland Security Investigations, the Florida Department of Law Enforcement, the United States Marshals Service, and the Tallahassee Police Department. Ms. Marsh said, “The protection of the children in our community remains a priority of the Department of Justice, and great praise is deserved by all of our law enforcement partners who contributed to the success of this investigation.”
The case was prosecuted by Assistant United States Attorney Herbert Lindsey.
Former Highland Park Police Officer Pleads Guilty to Extortion Conspiracy to Protect A Cocaine ShipmentRead the Press Release
A Highland Park Police officer pleaded guilty today to conspiring with three other police officers to commit extortion and protect a shipment of cocaine, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by FBI Special Agent in Charge Robert D. Foley, III.
During a hearing before U.S. District Judge Avern Cohn, Craig Clayton, 55, of Highland Park, Michigan, admitted that in late 2012 and early 2013, he agreed with three other Highland Park police officers to take money in exchange for protecting a four-kilogram shipment of cocaine. Clayton admitted that on January 23, 2013, he drove a car containing what he believed to be two kilograms of cocaine. Clayton brought his police badge and gun to protect the shipment. Another Highland Park police officer drove a separate car containing what he believed were two additional kilograms of cocaine. Later, Clayton accepted $1,500 in cash from an FBI informant for his work in delivering and protecting the drug shipment.
United States Attorney McQuade said, "Police officers who take bribes have no place in law enforcement. They will be prosecuted for violating their duties to serve the public.”
FBI Special Agent in Charge Foley stated, “Police officers who swear an oath to serve and protect are held to the highest standards of ethics and integrity. The FBI is committed to ensuring those standards are maintained, and in cases of abuse, will pursue and prosecute those responsible."Based on his guilty plea and felony conviction for conspiring to commit extortion, Clayton is facing a maximum of twenty years in prison and a fine of up to $250,000.
The case was investigated by agents of the FBI. It is being prosecuted by Assistant United States Attorney David A. Gardey.Former Bookkeeper of East Bay Real Estate Investment Company Sentenced to Prison for Embezzlement and Tax Evasion SchemeRead the Press Release
OAKLAND - Kristie Gale Meyer was sentenced yesterday to 41 months in prison and ordered to pay $1,332,329.35 in restitution to the victims and $584,092 to the IRS, arising from a multi-year scheme to embezzle funds from her employer, United States Attorney Melinda Haag and IRS-CI Special Agent in Charge Jose M. Martinez announced.
Meyer pleaded guilty on November 21, 2012, to mail fraud and tax evasion. According to the plea agreement, Meyer admitted to engaging in a multi-year scheme to defraud her employer, Ansil Realty & Investment Co. and its partner, KLP Properties, Inc. Meyer worked as Ansil’s secretary, office manager, and bookkeeper. She stole money by several means, including paying her credit card bills with checks drawn on the companies’ bank accounts and using those funds for her personal benefit, by taking cash advances, and by making payments to online gambling websites. Meyer also wrote checks drawn on the companies’ bank accounts and made deposits directly into her personal bank account. Meyer took steps to conceal her fraud by making false accounting entries in the companies’ accounting system to make her fraudulent transactions appear to be legitimate business expenditures, and by destroying copies of the fraudulent checks.
For the tax years 2006, 2007, and 2008, Meyer also willfully attempted to evade a large part of the income tax due and owing by filing false returns. Meyer knew that her taxable income for those years was substantially in excess of the amounts stated on her returns.
Meyer, 56, of Woodland Hills, CA, was indicted by a federal grand jury on August 2, 2010, on ten counts of wire fraud and three counts of tax evasion.
The sentence was handed down by U.S. District Court Judge Phyllis J. Hamilton following a guilty plea on one count of mail fraud in violation of 18 U.S.C. § 1341 and one count of tax evasion in violation of 26 U.S.C. § 7201. Judge Hamilton also sentenced the defendant to a three year period of supervised release, along with an order forfeiting $2,013,149.09.
Wade M. Rhyne is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan. The prosecution is the result of a year-long investigation by the Internal Revenue Service, Criminal Investigation.
Florida Man Sentenced for Role in $30 Million Telemarketing Scam That Victimized over 22,000 PeopleRead the Press Release
Christopher J. Gilkey, 31, formerly of Syracuse, NY, was sentenced to 27 months in prison, 3 years of supervised release, and was ordered to pay $17,976 in restitution, a $500 fine, and a $100 special assessment, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. Gilkey had previously plead guilty to a charge of conspiracy to commit mail and wire fraud for his role in a telemarketing scam operating under the names Universal Marketing Solutions and Creative Vacation Solutions. Gilkey also pleaded guilty to an Information charging conspiracy to commit mail fraud for his role in a similar telemarketing scam that operated under the name International Resort Solutions.
Gilkey admitted that he, along with many others, were involved in a telemarketing scam that operated under the names Universal Marketing Solutions and Creative Vacation Solutions. The scam companies, which operated in Florida and bilked over 22,000 victims of $30 million dollars, victimized consumers in all fifty states, the District of Columbia and Puerto Rico, all ten Canadian provinces and the Northwest Territory of Canada. There were at least 54 victims in twenty eight (28) of the thirty eight (38) counties comprising the Southern District of Illinois. Gilkey admitted that he was employed by a Universal Marketing Solutions and Creative Vacation Solutions franchise office as a telemarketer.
Beginning in October 2007 and continuing through at least January 2010, telemarketers for Universal Marketing Solutions and Creative Vacation Solutions placed cold calls to timeshare owners. During the calls, the telemarketers falsely represented that their company had actual buyers for the owners’ timeshare property. Gilkey and others solicited advanced fees of up to several thousand dollars from each victim in purported closing costs – fees they promised would be refunded to the owner once the closing on the property occurred. Many timeshare owners were told that their closings were scheduled within the next 60 to 90 days. Despite collecting fees from 22,000 victims, not a single timeshare unit was ever sold. Gilkey and his co-conspirators simply pocketed the closing costs.
Approximately twenty-nine others have been charged in connection with the Creative Vacation Solutions telemarketing scam. The company’s former chief executive, Jennifer Kirk, pleaded guilty to a criminal Information on June 30, 2011. She was sentenced on January 9, 2012, to over 16 years in prison and five years’ supervised release. Approximately twenty others have also been sentenced, receiving prison terms that range from 1 to 14 years.
Gilkey also admitted that after leaving Creative Vacation Solutions he went to work for a company called International Resort Solutions, LLC, another fraudulent timeshare resale operation with offices in Lake Worth and West Palm Beach, Florida. International Resort Solutions used the same fraudulent business model as Universal Marketing Solutions and Creative Vacation Solutions, and Gilkey was recruited to work for the company by Jeffrey Fields, another former employee of Universal Marketing Solutions and Creative Vacation Solutions. In July 2012, Fields was sentenced to 101 months in prison for his role in fraudulent timeshare resale operations.
These prosecutions follow an investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service, the Florida Attorney General’s Office, the Florida Department of Agriculture and Consumer Services, and the Boynton Beach Florida Police Department. The prosecution of the case was handled by Special Assistant U.S. Attorney Katherine Lewis, and Assistant U.S. Attorneys Nathan Stump and Bruce Reppert.
Fifteen Arrested Today on Federal and State Drug and Firearm ChargesRead the Press Release
BOSTON – Fifteen men from the North Shore, primarily Lynn and Revere, were charged today in federal and state court with various drug trafficking and firearm offenses.
A total of 15 individuals were arrested early this morning. Nine have been charged in federal indictments on drug trafficking and firearm offenses. Five have been charged by the Suffolk District Attorney’s Office and one individual has been charged by the Essex District Attorney’s Office. The charges are a result of a coordinated, joint federal and state investigation into drug trafficking and firearm possession in the North Shore.
The following individuals were arrested on federal charges today:
- Michael Johnson, a/k/a Juni, a/k/a Junebug, 28, of Revere, conspiracy and possession with intent to distribute and distribution of cocaine base;
- Kenny Bailey, a/k/a Bless, 22, of New Bedford, conspiracy and possession with intent to distribute and distribution of cocaine base;
- Freddy Dunbar, a/k/a Fox, 26, of Revere, conspiracy and possession with intent to distribute and distribution of cocaine base;
- Winford McRae, a/k/a E, 38, of Revere, possession with intent to distribute and distribution of cocaine base;
- David Batista, 37, of Lynn, conspiracy and possession with intent to distribute and distribution of heroin;
- Henry Mercado, a/k/a Chapo, 35, of Lynn, conspiracy and possession with intent to distribute and distribution of cocaine base;
- Manuel Rivera, 29, of Lynn, felon in possession of a firearm and ammunition;
- Gilberto Echevarria, a/k/a/ Roberto Echevarria, a/k/a Alberto Echevarria, 40, of Lynn, felon in possession of a firearm and ammunition and distribution of heroin; and
- Jermaine Rucker, 29, of Lynn, charged via complaint with conspiring to distribute crack cocaine.
The following individuals were arrested on state charges in Suffolk County today:
- Quinnelle Wheeler (charges in Suffolk and Essex Counties)
- Kevin Sanchez
- Sigfredo Sanchez
- Sulayman Abdul-Shafi
- Damien Hutchinson
The following individual was arrested on state charges in Essex County:
- Javier Santiago-Rosado
United States Attorney Carmen M. Ortiz; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation Boston Field Division; Eugenia A. Marquez, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives Boston Field Division; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; Commissioner Luis S. Spencer of the Massachusetts Department of Corrections; Sherriff Frank G. Cousins, Jr. of the Essex Sherriff’s Office; Middlesex District Attorney Gerard T. Leone; Essex District Attorney Jonathan Blodgett; Chief Kevin F. Coppinger of the Lynn Police Department; and Chief Joseph Cafarelli of the Revere Police Department, made the announcement today.
The case was investigated by the Federal Bureau of Investigation’s North Shore Gang Task Force and the Bureau of Alcohol, Tobacco, Firearms & Explosives Boston Field Division. The federal cases are being prosecuted by Assistant United States Attorneys in Ortiz=s Organized Crime and Gang Unit. The state defendants will be prosecuted by District Attorney Leone and Blodgett’s Office.
The charges contained in the indictments and complaints are accusations, the defendants are presumed innocent unless and until proven guilty.
For inquiries related to the state defendants, please contact Stephanie Chelf Guyotte, Communications Director, Middlesex District Attorney’s Office at (781) 897-8325 or the Essex District Attorney’s Office at (978) 745-6610 ext. 5079.
Eagle Butte Man Sentenced for Sexual Assault and Sexual Abuse ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota man convicted of one count of Sexual Assault of a Minor and one count of Sexual Abuse of a Person Incapable of Consenting, was sentenced on March 18, 2013 by U.S. District Judge Roberto A. Lange.
Patrick Brown Thunder, age 31, was sentenced to 240 months in custody, 5 years of supervised release, and a $200 Special Assessment that goes to the Victim Assistance Fund.
The convictions were the result of two different incidents—one that occurred in April 2006 and the other in March of 2008—near Dupree, South Dakota. Both incidents involved Brown Thunder sexually assaulting young females under the age of 16.
The investigation was conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Brown Thunder was remanded to the custody of the U.S. Marshal to begin serving his sentence.
Disbarred Lawyer Sentenced for Corrupt Real Estate TransactionsRead the Press Release
Defendant Stole Money From Escrow Account
ATLANTA – Neal Landers, 46, of Duluth, Georgia, was sentenced today to two years, three months in prison, for using funds taken from real estate transactions he oversaw for his personal use.
“Landers violated the law and the trust of his clients when he used his firm’s escrow account as his own personal piggy bank,” said United States Attorney Sally Quillian Yates.
“The FBI worked diligently in building a solid criminal investigation in this matter and hopes that those victimized by Mr. Landers’ egregious breach of trust can take some solace in today’s sentencing,” said Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office.
According to United States Attorney Yates, the charges, and other information presented in court, beginning in 2007, Landers exploited his position as a real estate closing attorney by misappropriating the funds from real estate closings. Specifically, Landers received money transfers into his escrow account from several real estate closings but did not distribute them as required. He deliberately delayed paying out the funds for weeks and sometimes months rather than promptly disbursing the funds for the recently closed properties. Instead, Landers would use those funds to pay out the parties from previously completed transactions. He also transferred funds, in amounts that far exceeded any closing fees and/or costs, from his escrow account to his business checking account. He then used that money to pay various personal expenses.
United States District Judge Thomas W. Thrash, Jr. sentenced Landers to two years, three months in prison, to be followed by three years of supervised release. He was also ordered to pay more than $850,000 in restitution.
The Georgia Bar disbarred Landers in 2008.
This case was investigated by Special Agents of the Federal Bureau of Investigation.
Assistant United States Attorney Jeffrey W. Davis prosecuted the case.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Crow Creek Man Sentenced for Conspiracy and Distribution of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Crow Creek, South Dakota man convicted of Conspiracy and Distribution of a Controlled Substance was sentenced on March 19, 2013 by U.S. District Judge Roberto A. Lange.
Royce Kirkie, age 35, was sentenced, on each count, to 37 months of imprisonment and 2 years of supervised release, with the sentences to run concurrently. Kirkie is to also pay $200 to the Victim Assistance Fund.
Kirkie was indicted for the above charges by a federal grand jury on July 18, 2012. The conspiracy charge stems from incidents occurring between February 13, 2011 and April 20, 2011 in Buffalo County, South Dakota in which Kirkie combined and conspired with another Defendant to distribute and possess with intent to distribute marijuana. The Distribution of a Controlled Substance charge stems from an incident on April 13, 2011 when Kirkie distributed marijuana.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force and Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Kirkie was immediately turned over to the custody of the U.S. Marshal.
Crawford County Man Sentenced to Nearly Ten Years in Prison on Methamphetamine ConspiracyRead the Press Release
On March 21, 2013, Michael G. Yankey, 49, of Annapolis, IL, was sentenced in United States District Court in Benton on a one-count indictment charging conspiracy to manufacture methamphetamine, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Yankey, who had previously pled guilty to the methamphetamine charge, was sentenced to 115 months in prison, followed by 4 years of supervised release, and fined $300. The offense occurred between May 2011 and April 2012, in Williamson, Randolph, Jackson, and Crawford Counties. Evidence at the plea and sentencing hearings established that Yankey was involved with others in the manufacture of methamphetamine. During the conspiracy, Yankey participated in numerous methamphetamine “cooks” at residences located in Randolph, Williamson, and Crawford Counties. Yankey also traveled with others to various towns in order to obtain pseudoephedrine and matches for the purpose of manufacturing methamphetamine.
The investigation was conducted by the Jackson County Sheriff’s Office, Randolph County Sheriff’s Office, Crawford County Sheriff’s Office, Murphysboro Police Department, Robinson Police Department and Drug Enforcement Administration. The Montgomery County Sheriff’s Office also assisted in the investigation.
The case was prosecuted by Assistant United States Attorney Amanda A. Robertson.
Chicopee Man Charged for Sexually Exploiting A ChildRead the Press Release
BOSTON – A Chicopee man and soccer coach was arrested this morning on sexual exploitation of children charges.
Michael DuPont, 36 formerly of Westfield and most recently from Chicopee, was charged by criminal complaint following a search at his residence early this morning. According to the criminal complaint affidavit, on Dec. 26, 2012, Vermont State Police were contacted by a “Minor A” victim’s mother, who reported that on Dec. 19, 2012, she inadvertently discovered inappropriate email correspondence between her minor child and another individual. According to the affidavit, agents met with Minor A who told them that in October 2012, she was contacted by an individual named “Mike” in a chatroom who indicated that he was a 37-year-old soccer coach in Massachusetts. Minor A told “Mike” that she was 14-years-old. It is alleged that Minor A also communicated at times with “Mike” via webcam when she was asked to “put on a show” over the webcam for him. It was later determined by authorities that “Mike” was identified as Dupont.
According to the complaint affidavit, after being advised of his Miranda rights, Mr. Dupont admitted that he has received explicit photos of at least five different girls over the Internet including Minor A and that he had asked Minor A to display herself nude over the webcam. He also admitted that he knew that Minor A was 14 or 15 years old.
If convicted, Dupont faces a mandatory minimum of 15 years and maximum of 30 years in prison, to be followed by a mandatory minimum of five years and maximum life term of supervised release.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston; and Chief John R. Ferraro, Jr. of the Chicopee Police Department made the announcement today. The case is being prosecuted by Assistant United States Attorney Steven Breslow of Ortiz’s Springfield Branch Office.
The charges contained in the complaint are accusations, and the defendant is presumed innocent unless and until proven guilty.
Chemung county man sentenced for possessing child pornographyRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Thomas Mehegan, 62, of Elmira, N.Y., who was convicted of possession of child pornography, was sentenced to 72 months in and 12 years supervised release by U.S. District Judge David G. Larimer. Mehegan will also have to register as a sexual offender.
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that Mehegan was identified during a New York State Police online child exploitation investigation. Troopers executed a search warrant at the defendant's Elmira address in 2010 and seized several digital computers and hard drives which contained child pornography. Police then contacted the Elmira Office of the Federal Bureau of Investigation which continued the investigation.
During the investigation, law enforcement learned that, in addition to searching for and downloading images of child pornography, Mehegan also secreted a hidden camera in his home with the intent to surreptitiously record his adult step-daughter breast feeding her infant child. The defendant was convicted of unlawful surveillance in Chemung County for this conduct in 2010 and was recently released from state prison before being taken into federal custody. A forensic examination of his computers located over 13,000 images of child pornography. Some of the child pornography depicted violence against children as young as three years old.
The sentencing was the culmination of an investigation on the part of Special Agents of Federal Bureau of Investigation, Elmira Resident Office, under the direction of Special Agent in Charge Christopher M. Piehota, and Troopers from the New York State Police under the command of Superintendent, Joseph A. D'Amico.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Chambersburg Area School District Teacher Arrested on Alleged Sexual Exploitation of Minors ChargeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jeffrey Schmutzler, of Fayettesville, Pennsylvania, was arrested today on charges of distribution and receipt of material involving the sexual exploitation of minors alleged in a Criminal Complaint filed in federal court today.
Chambersburg school officials were notified of the arrest.
Schmutzler is scheduled to appear before Chief Magistrate Judge Martin C. Carlson at 4:00pm today in the federal courthouse in Harrisburg.
U.S. Attorney Smith requests that anyone with information related to this matter please contact United States Postal Inspector Michael Corricelli at 717-257-5581.
The case is being investigated by the U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s(ICE) Homeland Security Investigations(HSI) and the Pennsylvania State Police. The prosecutor assigned to the case is Assistant United States Attorney Daryl F. Bloom.
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Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.Calexico Resident Sentenced to 216 Months in Federal Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Laura E. Duffy announced that Alejandro Avilla-Soto was sentenced on Monday, March 11, 2013 before the Honorable Judge Roger T. Benitez, United States District Court Judge to serve 216 months in federal prison based on his guilty plea to conspiracy to distribute 50 grams of methamphetamine, a Schedule II Controlled Substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 846.
In his guilty plea, Avilla-Soto admitted to engaging in a conspiracy to distribute methamphetamine from his residence in Calexico, CA. According to court documents, the defendant’s source of supply fronted the methamphetamine and allowed the defendant to pay for a portion of the drugs and the rest after it was sold.
The defendant entered his guilty plea on July 2, 2012, and has been in custody since his arrest by FBI agents on January 20, 2012.
This case is the result of an investigation conducted by the FBI Imperial County Safe Streets Task Force, a group of federal, state, and local law enforcement agents led by the FBI, investigating narcotics distribution and gang investigations.
DEFENDANT Case Number: 12CR0542BEN Alejandro Avila-Soto SUMMARY OF CHARGESTitle 21, United States Code, Sections 841(a)(1) and 846 – Conspiracy to distribute a controlled substance (Methamphetamine)
INVESTIGATING AGENCIESFederal Bureau of Investigation
United States Border Patrol
Immigrations and Customs Enforcement’s Homeland Security InvestigationsBuffalo Man Convicted at Trial of a Gun ChargeRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Jason Gladden, 26, of Buffalo, N.Y., was convicted of unlawfully possessing a firearm following a jury trial before U.S. District Judge Thomas J. McAvoy. The charge carries a maximum sentence of 10 years in prison and a $250,000 fine.
According to Assistant U.S. Attorneys Michael L. McCabe and John M. Alsup, who handled the prosecution of the case, during the trial the government presented testimony that on October 6, 2010, a Buffalo Police Department Detective along with New York State Parole officers and United States Marshals located the defendant at 102 Freund Avenue in Buffalo. Gladden was on state parole at the time, and had absconded to this address. In the house, officers located a 12 gauge shotgun which the defendant claimed he possessed for home protection. Gladden was prohibited under federal law from possessing the firearm due to his prior felony conviction.
The conviction is the culmination of an investigation on the part of the New York State Parole Division, under the direction of Commissioner Brian Fischer, United States Marshal Service Violent Felon Fugitive Task Force, under the direction of Marshal Charles Salina, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Frank Christiano.Sentencing is scheduled for July 8, 2013 at 9:00 a.m. before Judge McAvoy.
Brazilian Husband and Wife Sentenced in Florida for Alien SmugglingRead the Press Release
Brazilian nationals Juliana Rose Tome-Froes and her husband, Fabio Rodrigues Froes, were sentenced today in Miami to 60 months and 46 months in prison, respectively, for smuggling undocumented migrants to the United States for profit, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and U.S. Immigration and Customs Enforcement (ICE) Director John Morton.
Tome-Froes, 36, and Froes, 49, were sentenced by U.S. District Court Judge Federico A. Moreno in the Southern District of Florida. In addition to the prison sentences, Judge Moreno ordered each defendant to forfeit $150,000 in illegal proceeds.
On Jan. 16, 2013, Tome-Froes and Froes pleaded guilty to charges arising from their involvement in human smuggling. According to court documents, from at least October 2008 until approximately September 2010, the defendants organized, operated and managed a human smuggling network that spanned from Brazil to France, England, The Bahamas and the United States. The defendants met with undocumented migrants and negotiated forms of payment to be smuggled into the United States. Before the undocumented migrants departed Brazil, the defendants instructed them to act like tourists and explained that the itinerary through Europe would support a tourist cover story. In exchange for approximately $16,000, Tome-Froes, with assistance from Froes, arranged air transportation from Brazil to Paris, then London and Nassau, Bahamas. Tome-Froes arranged the undocumented migrants’ lodging in Paris and Nassau, and then instructed them to fly to Freeport, Bahamas, where they waited for a boat to transport them to the United States. For the final leg into the United States, Tome-Froes coordinated with various individuals in South Florida to pilot a small boat to Freeport, which picked up the undocumented migrants and transported them to the United States. According to court documents, the defendants knew the undocumented migrants did not have authorization to enter the United States.
The case was prosecuted by Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Marton Gyires of the Southern District of Florida. The investigation was conducted by ICE Homeland Security Investigations in Miami.
Brazilian Husband and Wife Sentenced in Florida for Alien SmugglingRead the Press Release
Brazilian nationals Juliana Rose Tome-Froes and her husband, Fabio Rodrigues Froes, were sentenced today in Miami to 60 months and 46 months in prison, respectively, for smuggling undocumented migrants to the United States for profit, announced U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Immigration and Customs Enforcement (ICE) Director John Morton.
Tome-Froes, 36, and Froes, 49, were sentenced by U.S. District Court Judge Federico A. Moreno in the Southern District of Florida. In addition to the prison sentences, Judge Moreno ordered each defendant to forfeit $150,000 in illegal proceeds.
On Jan. 16, 2013, Tome-Froes and Froes pleaded guilty to charges arising from their involvement in human smuggling. According to court documents, from at least October 2008 until approximately September 2010, the defendants organized, operated and managed a human smuggling network that spanned from Brazil to France, England, The Bahamas and the United States. The defendants met with undocumented migrants and negotiated forms of payment to be smuggled into the United States. Before the undocumented migrants departed Brazil, the defendants instructed them to act like tourists and explained that the itinerary through Europe would support a tourist cover story. In exchange for approximately $16,000, Tome-Froes, with assistance from Froes, arranged air transportation from Brazil to Paris, then London and Nassau, Bahamas. Tome-Froes arranged the undocumented migrants’ lodging in Paris and Nassau, and then instructed them to fly to Freeport, Bahamas, where they waited for a boat to transport them to the United States. For the final leg into the United States, Tome-Froes coordinated with various individuals in South Florida to pilot a small boat to Freeport, which picked up the undocumented migrants and transported them to the United States. According to court documents, the defendants knew the undocumented migrants did not have authorization to enter the United States.
The case was prosecuted by Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Marton Gyires of the Southern District of Florida. The investigation was conducted by ICE Homeland Security Investigations in Miami.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Bloomington Man Sentenced to 6 ½ Years in Prison for Failure to Register as Sex OffenderRead the Press Release
Defendant Repeatedly Failed to Register Despite Prior Convictions for Four Brutal Rapes
Peoria, Ill. – A Bloomington, Ill., man, convicted of four rapes in Cook County, Ill., who failed to register as a sex offender in Illinois, was sentenced this week to a sentence above the guideline range. Senior U.S. District Judge Michael M. Mihm sentenced Roy Anthony Baker, 51, on Monday, Mar. 18, 2013, to a term of 77 months (six years, five months) in federal prison for violation of the Sex Offender Registration and Notification Act (SORNA.) Baker was also ordered to remain on federal supervised release for the remainder of his life following completion of his prison sentence.
Baker pled guilty to the offense on May 31, 2012. While on bond in McLean County, Ill., from November 2011 to Feb. 13, 2012, Baker traveled from Illinois to Michigan to live with a single mother he met on the Internet. At the time, Baker was on bond pending sentencing for his second violation in McLean County for violation of the Sex Offender Registration requirement.
According to court documents, Baker was released from the Illinois Department of Corrections in November 2000, after serving two concurrent sentences of 28 years in prison for rapes committed in January and February 1987, less than three months after his release from prison for two rape convictions in 1983.
The government, represented by Assistant U.S. Attorney Kirk D. Schoenbein, sought and was granted a sentence greater than the guideline range of 33-41 months as determined by the U.S. Sentencing Commission, for the offense. Assistant U.S. Attorney Schoenbein argued that the sentencing guidelines used to determine Baker’s case criminal history calculation under-represented the seriousness of his criminal history and the likelihood of his continued criminal conduct.
The charge against Baker was investigated by the U.S. Marshals Service in the Central District of Illinois and the Bloomington Police Department.
The cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Baltimore Felon Exiled to over 19 Years in Prison in Murder-For-Hire SchemeRead the Press Release
Three-Time Felon Caught in FBI StingBaltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Antonio McKiver, age 47, of Baltimore, today to 235 months in prison followed by five years of supervised release for use of interstate commerce facilities in the commission of murder-for-hire, possession with the intent to distribute heroin and possession of a firearm by a convicted felon. Judge Blake enhanced McKiver’s sentence upon determining that McKiver is an armed career criminal based on three prior convictions for violent felonies and drug offenses.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
“There are other hit men like Antonio McKiver who commit drug-related murders in Baltimore,” said U.S. Attorney Rod J. Rosenstein. “Our challenge is to catch them before the next murder so we don't need to chase them afterwards.”
According to his plea agreement, on June 7, 2012 McKiver told a confidential informant that he was willing to be paid in cash and by drugs to carry out a murder. The next week McKiver met with an undercover FBI agent and agreed to commit a murder of a drug “associate” of the undercover agent for $15,000 and a kilogram of drugs. McKiver asked the undercover agent to provide the gun.
Thereafter, a cell phone used to arrange the murder and $600 were mailed to McKiver. On July 23, 2012, the undercover agent met McKiver in the parking lot of a hotel in Baltimore County, gave McKiver $5,000, a kilogram of heroin and a .9mm semi-automatic pistol. The undercover agent described the intended victim in detail to McKiver and pointed out the vehicle that the intended victim was using. After the undercover agent left and while McKiver waited in the parking lot for the victim, McKiver was arrested.
Agents executed a search warrant at McKiver’s house and seized a .40 caliber semi-automatic pistol and a 20 gauge shotgun. McKiver had previously been convicted of a felony and was prohibited from possessing the guns.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James G. Warwick and James Wallner, who prosecuted the case.
Arden Hills Man Indicted for Distributing 12 Pounds of MethamphetamineRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 35-year-old Arden Hills man was indicted for distributing approximately 12 pounds of methamphetamine. Marcelino Garcia was charged with one count of distribution of methamphetamine and one count of possession with intent to distribute methamphetamine.
The indictment alleges that on March 15, 2013, Garcia, also known as Moreno Marcelino Garcia and Marcelino Garcia-Moreno, conspired with others to distribute 500 or more grams of methamphetamine, and that Garcia knowingly possessed with intent to distribute 500 or more grams of methamphetamine. According to a law enforcement affidavit filed in the case, authorities learned about Garcia during routine narcotics’ investigations in the Twin Cities. On March 15, police arranged a controlled purchase at a store parking lot in Shoreview. Following the transaction, Garcia was arrested, and officers seized six bags containing approximately 5,100 grams of methamphetamine, along with packaging materials.
If convicted, Garcia faces a potential maximum penalty of life in prison on each count. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the Twin Cities Safe Streets Violent Gang Task Force, which is led by the Federal Bureau of Investigation and includes the Minneapolis Police Department. The task force’s mission is to investigate and target the most violent gangs operating in the Twin Cities or those gangs engaged in the large-scale trafficking of illegal drugs. The case is being prosecuted by Assistant United States Attorney Julie E. Allyn.
To learn more about the harmful effects of methamphetamine, visit http://www.justice.gov/dea/concern/meth.html.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.
Alleged Fraud Scheme Racked up $243k in Gift Cards & MerchandiseRead the Press Release
PHILADELPHIA - Diane Williams, 51, of New York, NY, was charged today by indictment with conspiracy to commit bank fraud, bank fraud, and aggravated identity theft in connection with a scheme to use stolen bank cards to buy department store gift cards, announced United States Attorney Zane David Memeger.
According to the indictment, between January 2011 and February 2012, a co-conspirator, unknown to the grand jury, obtained stolen bank cards that had been issued by Bank of America and recruited Williams as a “shopper.” The role of the shopper was to use the victims’ identification information and stolen bank cards to buy gift cards and other merchandise. Williams, working with the co-conspirator, allegedly obtained the dates of birth, addresses, Social Security numbers, bank account numbers, and other means of identification of unknowing victims. She allegedly used this information and the stolen bank cards to fraudulently buy at least $243,029.78 worth of store gift cards and merchandise from Target, Walgreens, Walmart, and other stores in Pennsylvania, New York, and New Jersey. It is further alleged that Williams and the co-conspirator obtained and possessed bank cards that had been stolen from a Pitney-Bowes distribution center in Reading, Pennsylvania. The co-conspirator allegedly paid Williams for her work by giving her cash equal to a portion of the value of the gift cards or other merchandise she purchased in each store.
If convicted, Williams faces a total statutory maximum of 47 years in prison, five years of supervised release, a fine of $2.75 million, and a $700 special assessment.
The case was investigated by the U.S. Secret Service. The case is being prosecuted by Assistant United States Attorney Laurie Magid.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Alfred Coleman and Tyist Decquir Coleman Sentenced for Conspiring to Steal Money from Federal Housing ProgramsRead the Press Release
ALFRED COLEMAN, age 54, and his wife TYIST DECQUIR COLEMAN, age 42, residents of Harvey, Louisiana, were sentenced today in federal court by U.S. Court Judge Eldon E. Fallon for conspiracy to steal government funds, announced U. S. Attorney Dana J. Boente.
According to court documents, on or about November 30, 2007, TYIST DECQUIR COLEMAN began receiving rental assistance from the Disaster Housing Assistance Program (DHAP), a program funded through the United States Department of Housing and Urban Development (HUD) to assist persons renting housing following Hurricanes Katrina and Rita. DHAP provided federal funds to pay for rental properties for persons for at least 18 months. However, in order to be eligible persons must have been renting their residence. TYIST DECQUIR COLEMAN was not renting housing at that time. Prior to November 30, 2007, TYIST DECQUIR COLEMAN had married ALFRED COLEMAN and they resided in a home in Harvey, Louisiana which was owned by ALFRED COLEMAN. From on or about January 1, 2008 until on or about March 1, 2009, TYIST DECQUIR COLEMAN, continued to fraudulently receive monthly rental assistance from DHAP through the Jefferson Parish Housing Authority for rental assistance at the Harvey, Louisiana home, failing to disclose that she was not renting her residence, but that she and ALFRED COLEMAN were living at the residence which was owned by ALFRED COLEMAN.
Following the termination of DHAP assistance benefits, TYIST DECQUIR COLEMAN, representing herself as Tyist Dequir, signed a Request for Tenancy Approval for the Housing Choice Voucher Program, a HUD funded program for low-income citizens renting their housing. The COLEMANs claimed that TYIST DECQUIR COLEMAN was renting the home ALFRED COLEMAN owned and that ALFRED COLEMAN was her landlord. The COLEMANs fraudulently received rental payments from the federal program for the home they owned until January 1, 2012.
ALFRED COLEMAN was sentenced to three years probation. TYIST DECQUIR COLEMAN was sentenced to three years probation with an additional condition of intermittent confinement to prison for 12 weekends. The defendants are responsible for restitution in the amount of $44,013.
The case was investigated by the United States Department of Housing and Urban Development–OIG and prosecuted by Assistant United States Attorney Emily K. Greenfield.
Agreement Reached with the Unified Government of Wyandotte County and Kansas City, Kansas, to Improve Sewer and Stormwater SystemsRead the Press Release
The Unified Government of Wyandotte Co. and Kansas City, Kan., has agreed to a settlement to address unauthorized overflows of untreated raw sewage and to reduce pollution levels in urban stormwater, the Department of Justice and Environmental Protection Agency (EPA) announced today.
The settlement, lodged today in federal court in Kansas City, Kan., requires the Unified Government to implement improved operation and maintenance programs for its sewer system, perform initial work to address sewer overflows, and implement an improved Storm Water Management Plan. The Unified Government will also develop a proposed overflow control plan for the sewer system by September 2016 for approval by EPA. Unified Government’s implementation of that plan, once approved, will be embodied in a subsequent judicial settlement.
“Today’s agreement will put the Unified Government of Wyandotte County on a clear path toward compliance with the Clean Water Act,” said Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “The settlement will address deficiencies and require improvements to Wyandotte County’s sewer and stormwater systems that will reduce risks and bring cleaner water for the benefit of the county resident’s health and the environment.”
“EPA is working with cities to find effective, affordable solutions to control raw sewage and stormwater overflows,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “Today’s settlement allows the Unified Government to tackle their most important water quality problems first, while preparing a long-term approach to keep local waterways protected in the future.”
“This settlement is good news for Kansas,” said Barry Grissom, U.S. Attorney for the District of Kansas. “By protecting our rivers, we are ensuring clean drinking water supplies, protecting public health, improving recreation and leaving a legacy of healthy rivers for future Kansans.”
“We are pleased that this settlement will result in the vigorous efforts by the Unified Government to improve its wastewater and stormwater programs,” said Karl Brooks, EPA regional administrator. “These programs will provide significant health and environmental benefits to the citizens of Kansas City, Kansas and Wyandotte County. Of special note are the immediate actions by the Unified Government to address sewer overflows in the northeast area of the city where there is a high proportion of low income and minority residents.”
The Unified Government’s sewer system collects and receives domestic, commercial and industrial wastewater from approximately 110,000 area residents. The system includes five wastewater treatment plants and more than 800 miles of sewer lines. The system is served by about one-third combined sewers, which carry both stormwater and wastewater, and the remainder by separated sewers.
Since 2004, the Unified Government has reported more than 450 illegal sewer overflows from its sewer system. These overflows resulted in the discharge of raw sewage into the Missouri River, the Kansas River and their tributaries. Untreated sewage from overflows can cause serious water quality problems and health issues from pollutants including harmful bacteria, oxygen-depleting substances, suspended solids, toxic metals and chemicals, and nutrients. The overflows are in violation of the federal Clean Water Act (CWA) and the terms of the city’s National Pollutant Discharge Elimination System (NPDES) permits for operation of its sewer system.
Under the agreement, the Unified Government is required to perform initial work primarily in the combined sewer portion of the system, located in the oldest developed area of the city, which is expected to provide relief to residences and other properties in the urban core that are often impacted by overflows.
The settlement also requires the Unified Government to implement an improved Storm water management plan, designed to reduce pollutants in stormwater. Municipal stormwater sewers carry significant amounts of pollution into urban rivers, lakes and streams. Pollutants such as lead, copper, oxygen-depleting materials and sediment in municipal stormwater can clog streams, harm or kill aquatic life, and result in human exposure to harmful substances. The existing stormwater management program at issue in this settlement was drafted by the Unified Government and made part of the stormwater discharge permit issued by the state of Kansas in 2001 and reissued in 2007.
Keeping raw sewage and contaminated stormwater out of the waters of the United States is one of the EPA’s highest priorities. Reductions in sewer and stormwater overflows are accomplished by obtaining cities’ commitments to implement timely, affordable solutions to these problems, which may also include the use of integrated municipal stormwater and wastewater plans. Integrated plans are intended to be an option to help municipalities meet their CWA obligations by optimizing the benefits of their infrastructure improvement investments through the appropriate sequencing of work. This approach can also lead to more sustainable and comprehensive solutions, such as green infrastructure, that improve water quality and enhance community vitality.
The partial settlement, lodged today in the U.S. District Court for the District of Kansas, is subject to a 30-day public comment period and approval by the federal court. A copy of the consent decree is available on the Justice Department website at www.usdoj.gov/enrd/Consent_Decrees.html.More information about EPA’s national enforcement initiative: www.epa.gov/compliance/data/planning/initiatives/2011sewagestormwater.html
More information about integrated municipal stormwater and wastewater plans: http://cfpub.epa.gov/npdes/integratedplans.cfm
62 Individuals Indicted for Drug Trafficking in the Municipality of AreciboRead the Press Release
Defendants facing two narcotics forfeiture allegations of ten and five million dollars in two separate indictments
SAN JUAN, PR – Yesterday, a federal grand jury indicted 62 individuals in four separate indictments as the result of investigations led by the Drug Enforcement Administration (DEA) and the Puerto Rico Police Department (PRPD), announced today United States Attorney Rosa Emilia Rodríguez-Vélez. The United States Postal Inspectors and the Alcohol, Tobacco, Firearms and Explosives Bureau also participated during the investigation and the arrests.
The first indictment charges 44 individuals in a six-count indictment with conspiracy to possess with intent to distribute controlled substances within 1,000 feet of the real property comprising the Trina Padilla de Sanz, Bella Vista, Ramón Marín Solà and Manuel Zeno Gandía Public Housing Projects (collectively referred to as “El Cotto”) in the municipality of Arecibo. The object of the conspiracy was to distribute “crack” (cocaine base), cocaine, marihuana and Alprazolam (commonly known as Xanax) at “El Cotto” and in other areas nearby within the municipality of Arecibo, Puerto Rico, for significant financial gain and profit.
According to the indictment, from on or about the year 2004, the defendants conspired to purchase wholesale quantities of cocaine, heroin, marihuana and Xanax in order to distribute the same in street quantity amounts at the different drug points in “El Cotto” and in other areas of Arecibo. The main leader of the organization was Héctor Miranda-Rivera, aka “Ufo.” The other leaders were: Miguel Villanueva Lorenzo, aka “Tatito;” Fabian López-Mercado, aka “Fabi;” Eduardo Serrano-Rodríguez, aka “Eduard Dientu;” José Romàn-Rodríguez, aka “Chonono;” Esteban León-Mundo, aka “Steven;” Reynaldo Martínez-Gonzàlez, aka “Reysito;” Luis Pérez-Orta, aka “Gemi;” Edwin Olmo-Rodríguez, aka “Poco Pello;” Yamil Ocasio-Gonzàlez; and Harry Reyes-Estremera, aka “Grilli.”According to the indictment, the 44 co-conspirators had many roles, in order to further the goals of the conspiracy. These were: 11 leaders; drug owners; three suppliers; four runners; six enforcers; 19 sellers and one facilitator. The defendants are facing a narcotics forfeiture allegation of 10 million dollars.
Count six of the indictment charges López-Mercado and Alejandro Pérez-Gonzàlez with knowingly and intentionally using a communication facility, that is the United States Postal Service, to facilitate the commission of acts constituting a felony - trafficking marihuana.
The second indictment charges 16 individuals in a four-count indictment with conspiracy to possess with intent to distribute controlled substances within 1,000 feet of the real property comprising the Antonio Màrquez Arbona Public Housing Project, a housing facility owned by a public housing authority and other areas nearby and within the municipality of Arecibo. According to the indictment, from on or about the year 2004, the defendants conspired to possess with intent to distribute crack, cocaine, marihuana and Xanax at the Housing Project for significant financial gain and profit.The indictment alleges that, as part of the manner and means of the conspiracy, the co-conspirators would routinely possess, carry, brandish and use firearms to protect themselves and their drug trafficking organization. The 16 co-conspirators had many roles, in order to further the goals of the conspiracy. These were: four leaders-Luis Díaz-Natal, aka “Chencho;” Jesús Acosta-Millet, aka “Lalo;” Juan Pérez-Morales, aka “Charry,” “Joker;” and Jorge Sànchez-Pérez, aka “Joey;” drug owners; two runners; enforcers; 10 sellers and facilitators. The defendants are facing a narcotics forfeiture allegation of five million dollars.
Defendants Jorge Cintrón-Cordero, aka “Ogy” and Edwin De León-Ithier, aka “Edwin Trabuco” are charged in two separate indictments for knowingly and intentionally possess with intent to distribute crack.
“These arrests confirm the Justice Department’s commitment to hold ruthless drug traffickers responsible for selling narcotics and promoting the violence we are seeing in our communities,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “We will continue with our efforts of investigating and prosecuting drug trafficking organizations, until we have covered every municipality in Puerto Rico.”
“These arrests stand as a warning to those individuals whose greed drives them to pollute our communities and schools with poisonous drugs. Our message to drug vendors and those responsible for the loss of innocent by standards – deal at your own risk. We are going to continue investigating those who have no respect for life and maintain our communities captives.” said Pedro Janer, DEA Acting Special Agent in Charge for the Caribbean Division.
“The United States Postal Inspection Service is committed to protect the US Mail from criminal misuse. We remain vigilant and continue to work to ensure those who utilize the US Mail as a means to transport contraband are brought before justice,” said Delany De León, Team Leader Postal Inspector, USPIS Newark Division/ San Juan Field Office. “Today we can see the results of our vigilance, our efforts, and our law enforcement partnerships. We have successfully identified, disrupted, and dismantled another dangerous Drug Trafficking Organization.”
These cases are being prosecuted by Assistant United States Attorney and Chief of the Narcotics Unit Timothy Henwood.
If convicted, the defendants face a minimum of ten (10) years imprisonment and a maximum of life imprisonment, with fines of up to $10 million. Criminal indictments are only charges and not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
20 March 2013
Wolcott Man Admits Role in Illegal Campaign Contribution SchemeRead the Press Release
March 20, 2013David B. Fein, United States Attorney for the District of Connecticut announced that DANIEL MONTEIRO, 33, of Wolcott, pleaded guilty today before United States District Judge Janet Bond Arterton in New Haven to a federal conspiracy charge stemming from a scheme to direct illegal campaign contributions into the campaign of a candidate for the U.S. House of Representatives.
According to court documents and statements made in court, in August 2011, the State of Connecticut applied for a court order enjoining Roll Your Own (“RYO”) smoke shops from continuing to operate without complying with state law governing tobacco manufacturers. RYO smoke shops are retail businesses that sell loose smoking tobacco and cigarette-rolling materials and offer customers the option of paying a “rental” fee to insert the loose tobacco and the rolling materials into a RYO machine, which is capable of rapidly rolling large quantities of cigarettes. Customers did not pay a tax on the RYO cigarettes when rolled by the RYO machines, in contrast to cigarettes purchased over-the-counter.
Fearing that the Connecticut General Assembly would enact legislation harmful to RYO smoke shop owners’ business interests during the 2012 legislative session, Paul Rogers, who owned a RYO smoke shop with two locations in Waterbury, Harry Raymond “Ray” Soucy, David Moffa and others engaged in a scheme to direct conduit campaign contributions into the campaign of a candidate for the U.S. House of Representatives. The candidate was also a member of the Connecticut General Assembly. As part of the scheme, the co-conspirators recruited multiple individuals to serve as conduit contributors to the campaign. These individuals permitted checks to be written in their own names to the campaign, and Rogers and other conspirators reimbursed them with cash, thereby concealing the fact that RYO smoke shop owners were contributing to the campaign.
In November and December 2011, the conspirators made four $2,500 conduit contributions to the Campaign. MONTEIRO, a Waterbury business owner, was aware of the purpose of the contributions and that the contributions were being made in the names of others.
On approximately January 31, 2012, the Campaign Committee submitted to the Federal Election Commission (“FEC”) a report of the Campaign Committee’s receipts and disbursements for the period October 1, 2011 through December 31, 2011. The report falsely stated the source and amount of the four $2,500 contributions that were received and deposited by the Campaign Committee during that time period.
In the spring of 2012, the conspirators made additional illegal campaign contributions totaling $17,500. MONTEIRO provided one check in exchange for $2,500 in cash, and two of MONTEIRO’s employees provided $2,500 checks in exchange for reimbursement.
MONTEIRO pleaded guilty to one count of conspiracy to make false statements to the FEC and to impede the FEC’s enforcement of federal campaign finance laws. Judge Arterton has scheduled sentencing for June 12, 2013, at which time MONTEIRO faces a maximum term of imprisonment of five years and a fine of up to $250,000.
Rogers, Soucy and Moffa have also pleaded guilty to charges related to this scheme and await sentencing.
As to the four other individuals who have been charged as a result of this investigation, U.S. Attorney Fein stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Christopher M. Mattei and Eric J. Glover.
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(203) 821-3722 [email protected]Two Moses Lake Drug Traffickers Sentenced to Lengthy Federal Prison TermsRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington announced that Isidro Madrigal-Galvan, age 20, and Renee Gomez, age 24, both of Moses Lake, Washington, were sentenced after being convicted by a jury of conspiracy to distribute methamphetamine and other offenses relating to the operation of a methamphetamine trafficking organization during May, 2010 through July, 2011. Senior United States District Judge Edward Shea sentenced Madrigal-Galvan to more than a 19 year term of imprisonment, to be followed by 8 years of court supervision upon release from Federal prison. As a condition of that supervision, Madrigal-Galvan is prohibited from returning to the United States – he is not a United States citizen and faces deportation to Mexico as a result the convictions in this case. Judge Shea sentenced Gomez to a 10 year term of imprisonment, to be followed by 6 years of court supervision upon release from Federal prison.
In April, 2012, Madrigal-Galvan and Gomez were charged by way of a multi-count Indictment with offenses relating to the distribution and possession of methamphetamine, including the possession with intent to distribute methamphetamine within 1,000 feet of a school, possession with intent to distribute methamphetamine on premisses in which an individual under the age of 18 was present or resided, maintaining a drug involved premises within 1,000 feet of a school, and using and carrying a firearm during and in relation to a drug trafficking crime. Following a trial, on October 10, 2012 the jury returned guilty verdicts against Madrigal-Galvan and Gomez on multiple counts.
At the sentencing hearing, Judge Shea noted a number of factors considered"aggravating" under federal Sentencing Guidelines, including that the drug trafficking conspiracy involved a premises that bordered a primary grade school. The Judge also noted that by Federal statute the sentence for using and carrying a firearm during and in relation to a drug trafficking crime must be served consecutive to the sentence imposed for any of the other crimes. These factors, in combination with others, resulted in Madrigal-Galvan's sentence of more than 19 years. With respect to Gomez, Judge Shea found that her role in the offenses was relatively minor by comparison to other participants, noting that in February, 2013, a third member of the conspiracy, Martin Murillo-Barriga, was sentenced to over 16 ½ years. Based on the totality of the circumstances Judge Shea sentenced Gomez to a 10 year term of imprisonment, which was the minimum allowed by statute.
Michael C. Ormsby stated that, "These sentences reflect the serious consequences associated with trafficking in methamphetamine, particularly when it is conducted so close to a grade school. The law enforcement agencies involved in this investigation should be commended for their efforts in investigating this, and other drug trafficking organizations. This case is yet one more example of the strong partnership among law enforcement professional here in the Eastern District of Washington."
The investigation of this case, which was related to a larger investigation conducted by the Drug Enforcement Administration that led to the service of several search warrants and the arrest of numerous individuals, was conducted by the Spokane Regional Drug Task Force in cooperation with the Moses Lake Police Department, the Grant County Sheriffs Office, the Grant County Interagency Narcotics Enforcement Team, the Douglas County Sheriff's Office, the Oregon State Police, the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, and Firearms; Immigrations and Customs Enforcement; and the United States Marshall's Service.
This case was prosecuted by Timothy J. Ohms and Caitlin A. Baunsgard, Assistant United States Attorneys for the Eastern District of Washington.
CR-12-0108-EFS
Two Members of Violent Robbery Crew Found Guilty in Manhattan Federal Court of Murder, Nine Robberies, and Firearms ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Joseph Anarumo, the Special-Agent-in-Charge of the New York Division of the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), and Raymond W. Kelly, the Commissioner of the Police Department for the City of New York (“NYPD”), announced that JERMAINE DORE and DWAYNE BARRETT, two members of a violent robbery crew operating in the Bronx and Westchester County, New York, were found guilty yesterday in Manhattan federal court of murder, nine robberies, and firearms charges. DORE and BARRETT were convicted after a two-week jury trial before U.S. District Judge Richard J. Sullivan.
According to the Superseding Indictment and the evidence presented at trial:
Between August 2011 and January 2012, DORE and BARRETT participated in nine separate robberies. They carried out those robberies, using weapons – including firearms and knives – to injure, terrorize, and in one case murder, one of their victims. The nine robberies were:
- A robbery that took place on August 22, 2011, in Matamoras, Pennsylvania, during which an individual who owns a gas station and store was assaulted and robbed of approximately $45,000 in business proceeds;
- A robbery that took place on October 5, 2011, in the Bronx, New York, during which two individuals who sell telephone calling cards to bodegas, grocery stores, and other commercial locations, were robbed of approximately $700;
- A robbery at knifepoint that took place on October 10, 2011, in the Bronx, New York, during which the employee of a bodega was robbed of a cellphone and laptop computer;
- A robbery at knifepoint that took place on October 11, 2011, in New Rochelle, New York, during which an individual who sold telephone calling cards was beaten and robbed of more than $6,000 and telephone calling cards valued at approximately $6,000;
- A robbery at gunpoint that took place on October 29, 2011, of an individual who owns a poultry market in the Bronx, New York, during which approximately $15,000 in business proceeds were taken;
- A robbery at gunpoint on December 12, 2011, in Mount Vernon, New York, during which the defendants attempted to rob three victims engaged in the business of selling cigarettes to other individuals and commercial establishments, and shot and killed one of the victims;
- A robbery that took place on December 12, 2011, in the Bronx, New York, during which an individual employed by a company that sells tobacco products to commercial establishments was threatened with a gun and a knife and robbed of more than $15,000;
- A robbery that took place on December 31, 2011, in the Bronx, New York, during which an individual who sold telephone calling cards was beaten and robbed of approximately $3,000 and 100 telephone calling cards; and
- A robbery at knifepoint that took place on January 7, 2012, in the Bronx, New York, during which an individual who owns a business that supplies merchandise to bodegas was assaulted and robbed of approximately $1000.
BARRETT also acted as the driver in connection with many of the robberies.
DORE, 26, of the Bronx, New York, and BARRETT, 35, of Yonkers, New York, were convicted of the following seven counts: (1) participating in a conspiracy to commit robberies from 2010 through January 2012; (2) using, carrying, or possessing firearms in connection with the robbery conspiracy; (3) committing a robbery on October 29, 2011, at an apartment on Radcliff Avenue in the Bronx, New York; (4) using, carrying, or possessing firearms in connection with the October 29 robbery; (5) committing a robbery on December 12, 2011, in the vicinity of 267 South Fourth Avenue, Mount Vernon, New York; (6) using, carrying, or possessing firearms in connection with the December 12 robbery; and (7) causing the death of Gamar Dafalla, one of the victims of the December 12, 2011, robbery. They both face a maximum penalty of life in prison. DORE and BARRETT are scheduled to be sentenced by Judge Sullivan on July 26, 2013.
Three other defendants pled guilty to related charges prior to trial: Fahd Hussain, Taijay Todd, and Tameshwar Singh. Hussain was the operator of One M Stationery Store, located on White Plains Road in the Bronx, New York, who exploited his relationships with other business owners, including individuals who supplied Hussain’s store with telephone calling cards and other merchandise, personal friends, and family members in targeting the robbery victims. Many of the victims, were business owners and members of the Yemeni community in New York City, as was Hussain. Todd participated in several of the robberies with DORE and BARRETT. Singh was a business associate of HUSSAIN who engaged in the transportation of untaxed cigarettes. Hussain, Todd, and Singh are scheduled to be sentenced by Judge Sullivan on June 21, July 10, and June 19, 2013, respectively.
Mr. Bharara praised the ATF and the NYPD for their work in this investigation.
The prosecution of this case is being overseen by the Office’s Violent Crimes Unit. Assistant United States Attorneys Amy Lester and Jessica Masella are in charge of the prosecution.
U.S. v. Fahd Hussain, et al. S2 Indictment
Two Defendants sentenced in credit card schemeRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that David Pierleoni, 26, of Rochester, N.Y. and Cassandra N. Dehn, 27, of Willard, MO, who were convicted of offenses related to a wire fraud conspiracy were sentenced by U.S. District Judge David G. Larimer. Pierleoni, who was convicted of conspiracy to commit wire fraud and aggravated identity theft, was sentenced to 42 months in prison. Dehn, who was convicted of conspiracy to commit wire fraud, was sentenced to three years probation. Both defendants were ordered to pay restitution in the amount of $22,808.71.
Assistant U.S. Attorney Marisa J. Miller, who handled the case, stated that the defendants, along with a third co-defendant, Victor Ortiz, conspired to obtain credit card information, including numbers, access codes and expiration dates, which were then used to make fraudulent purchases in Rochester. Defendant Dehn, an employee of a Comfort Inn and Suites hotel in Willard, Missouri, obtained personal credit card information of guests from the hotel's computer system, which she then transmitted to co-defendant Pierleoni, in exchange for $100. Pierleoni and Ortiz then used the information from Dehn to make unlawful purchases of high end liquor and food at Rochester businesses. The defendants knew that the credit card numbers had been assigned to other people and that they were not authorized to make purchases with the numbers. As a result of the fraudulent purchases, the local businesses incurred losses in excess of $20,000.
Defendant Ortiz was sentenced by Judge Larimer in January to 60 months in prison and he was also ordered to pay $22,808.71 in restitution.
The sentencings are the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent In Charge Christopher M. Piehota and members of the Monroe County Sheriff’s Office, under the direction of Sheriff Patrick O’Flynn.
Two Ashland Men in Stolen Motorcycle Ring ConvictedRead the Press Release
LONDON, KY - A federal jury in London, KY., found two Ashland, Ky., men guilty for their roles in a motorcycle theft ring.
Richard Meade, 65, and Mark Justice, 53, were convicted of a conspiracy to engage in money laundering by illegally transferring the ownership of stolen motorcycles and one count each of possession of motorcycles with altered vehicle identification (VIN) numbers. Justice was also convicted of one count of illegally transferring ownership titles of stolen motorcycles while Meade was convicted on one count and acquitted on another count of the same charge. A third defendant, George Ferguson, 64, on trial for the conspiracy charge, was acquitted.
The jury reached the verdict Tuesday night after approximately 3 hours of deliberation following more than three weeks of trial.
According to trial testimony, the two defendants sold approximately 30 motorcycles out of car lots in Ashland. They sold the motorcycles for between $13,000 and $15,000 apiece.
Justice and Meade participated in a conspiracy in which co-defendant Robert Jason Chapman of Cincinnati coordinated trips with others to motorcycle rallies in South Carolina, South Dakota and Florida. At these events, Chapman and others stole motorcycles and brought them to Kentucky to sell.
Chapman previously admitted that he and a co-defendant removed parts of the stolen motorcycles and replaced them with aftermarket parts bearing different vehicle identification numbers (VIN). He registered the stolen motorcycles with the new VIN numbers in Kentucky. Meade and Justice took some of the newly registered motorcycles and sold them.
Six other defendants previously pleaded guilty to their roles in the case.
The FBI and Kentucky State Police identified nearly 200 victims in this case, which include the original motorcycle owners and insurance companies.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Perrye Turner, Special Agent in Charge, FBI, and Rodney Brewer, Kentucky State Police Commissioner jointly announced the plea.
The investigation preceding the indictment was conducted by the FBI, Kentucky State Police, the Boyd County Sheriff’s Office, Ohio Bureau of Investigations, Ohio Attorney General’s Office, and Ohio State Patrol. The U.S. Attorney’s Office was represented in the case by Assistant United States Attorneys Kenneth R. Taylor and Erin J. Roth.
The defendants are scheduled for sentencing on July 24, 2013. They face up to 20 years in prison on the illegal transfer of ownership titles charge and the conspiracy charge. Possessing motorcycles with altered VIN numbers carries a maximum 10 year penalty.
Toledo Man Charged with Wire Fraud and Identity TheftRead the Press Release
A criminal information was filed charging Jermain R. Stevenson, age 22, of Toledo, Ohio, with wire fraud and aggravated identity theft, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Stevenson is accused of fraudulently obtaining the personal identification information of credit-card holders and using that information to have purchase goods and services that he then had delivered to various locations in Toledo, according to the information.
Stevenson did this between October 2010 and January 2012, fraudulently purchasing at least $62,000 worth of goods and services, according to the information.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation, Cleveland. The case is being handled by Assistant United States Attorney Joseph R. Wilson.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Tallahassee Man Sentenced to Thirty Months for ConversionRead the Press Release
PANAMA CITY, FLORIDA –Charles R. Hood, 59, of Tallahassee, Florida was sentenced to thirty months in federal prison today for conversion of property listed as collateral on a mortgage loan.
On October 18, 2012, Hood pled guilty to a one-count information charging him with conversion of property pledged as collateral on a mortgage loan, in violation of Title 18, United States Code, Section 658. Facts presented during the plea hearing revealed that Hood, owner of Fidelity Foods, LLC, was working as a peanut broker. On January 7, 2008, Hood signed a loan agreement with Farm Credit of Northwest Florida (hereinafter “Farm Credit”) allowing him to receive a revolving line of credit of up to $5 million. As collateral on the loan, Hood pledged, among other things, peanuts that he or his company held at warehouses and/or shelling plants. After receiving a line of credit from Farm Credit throughout 2008, Hood subsequently defaulted on the loan. Afterwards, Farm Credit attempted to recover their losses by claiming the peanuts pledged as collateral on the loan. However, Farm Credit subsequently learned that between on or about January 7, 2008, and on or about January 23, 2009, Hood had used peanuts which were listed as collateral on Hood’s loan agreement with Farm Credit to settle an outstanding $2,100,838.83 business debt that he owed to another company.
As part of his sentence, United States District Judge Richard Smoak also imposed three years’ supervised release. In addition, Hood agreed to pay $2,456,720.97 in restitution to the victim, Farm Credit, which represented the outstanding balance owed on his loan.The sentence was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida. Ms. Marsh praised the work of the Federal Bureau of Investigation in this matter. The case was prosecuted by Assistant U.S. Attorney J. Ryan Love.
Solomons Man Sentenced to 12 Years in Prison for Producing Child PornographyRead the Press Release
Typical of the Predators Children Routinely Encounter on the InternetGreenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Joshua P. Blakenship, age 25, of Solomons, Maryland, today to 12 years in prison followed by a lifetime of supervised release for producing child pornography. Judge Titus ordered that upon his release from prison, Blakenship must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Calvert County Sheriff Mike Evans; and the Rapid City South Dakota Police Department.
“Joshua Blankenship is typical of the predators children routinely encounter on the internet,” said U.S. Attorney Rod J. Rosenstein.
“Individuals that sexually exploit children think they can hide behind their computers and not be discovered by law enforcement,” said Special Agent in Charge of HSI Baltimore William Winter. “Think again. HSI special agents along with our domestic and international law enforcement partners have joined forces to aggressively investigate and apprehend these predators and ensure that they are prosecuted to the full extent of the law.”
According to his plea agreement, Blakenship “friended” a teenage girl on Facebook in January 2011. They exchanged text messages and by March 2011, Blankenship asked the girl for a nude photo of herself. The girl sent Blakenship a nude photo she took on her cell phone.
On July 4, 2011, Blankenship sent a text message to the girl demanding 10 nude pictures and said that if she did not produce and send the photos, she would go to jail because she had sent an illegal image on her cell phone. Between July 5 and 7, 2011, Blakenship sent numerous texts describing the images he wanted her to produce and threatening to call the police if she refused. The victim produced several dozen pictures and sent them to Blakenship.
Blakenship was identified and his residence searched on August 5, 2011. Blakenship admitted to forcing individuals to send him pictures, and to creating a fake profile on the Internet to gain access to pictures and videos of girls.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
This investigation was part of Operation Predator, a nationwide HSI initiative to protect children from sexual predators, including those who travel overseas for sex with minors, Internet child pornographers, criminal alien sex offenders and child sex traffickers. HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, Calvert County Sheriff’s Office and Rapid City, South Dakota Police Department for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section, and Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.
Skidmore Man Charged with Illegal Firearm Following PursuitRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Skidmore, Mo., man was charged in federal court today with illegally possessing a firearm after he attempted to flee from law enforcement officers.
Eric Maupin, 51, of Skidmore, was charged with being a felon in possession of a firearm in a criminal complaint that was filed in the U.S. District Court in Kansas City, Mo.
According to an affidavit filed in support of today’s criminal complaint, law enforcement officers responded to a report of a domestic disturbance at Maupin’s residence on March 12, 2013. When officers entered the residence through the open front door, there was nobody in the house; however, they saw long guns positioned at the windows and exterior doors of the residence. As they were leaving the residence, Maupin’s wife told them that she and her husband had been involved in an altercation and he was still on the property.
As the officers walked from the residence, the affidavit says, a Cadillac Escalade pulled out of one of the sheds on the property and drove at a high rate of speed in the direction of the officers. They pointed their weapons in the direction of the Escalade and the vehicle stopped. Maupin, whom the affidavit says was driving, was ordered to exit the vehicle. Instead, he again drove in the direction of the officers. The officers did not fire their weapons due to the presence of children in the vehicle. Maupin backed the vehicle up and drove out another exit from the property, the affidavit says, due to the driveway being blocked.
Maupin crashed the Escalade at the intersection of Highway PP and Highway 46. The vehicle was able to back out and continued east on Highway 46 for approximately 100 yards before the vehicle became disabled. Maupin exited the vehicle and was taken into custody by the sheriff and a state trooper after a brief struggle, the affidavit says.
According to the affidavit, officers searched the vehicle and found a loaded Beretta .40-caliber semi-automatic pistol between the front seat and the armrest of the vehicle. They also found 11 additional firearms and ammunition in Maupin’s residence.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Maupin has prior felony convictions for conspiracy to manufacture methamphetamine, possession of methamphetamine, carrying a concealed weapon and possession of a controlled substance.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the Nodaway County, Mo., Sheriff’s Department, the Missouri State Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Sheboygan Man Indicted in Federal Court with Sex Trafficking and Distribution of HeroinRead the Press Release
United States Attorney James L. Santelle announced that a federal grand jury has indicted Jason B. Guidry, (age: 31) of Sheboygan on multiple counts of drug and sex trafficking crimes. Guidry was initially indicted on January 18, 2013 and charged with a number of drug offenses including: Conspiracy to Distribute Heroin, Distribution of Heroin, and Possession with Intent to Distribute Controlled Substances.
On March 19, 2013, in a superseding indictment, Guidry was again charged with the original drug crimes and the following sex trafficking crimes: Counts 2, 3, 4 and 9 of indictment charge Guidry with Sex Trafficking through Use of Force, Fraud or Coercion, involving four separate victims, and Counts 5, 6, 7, 8, 10, and 12 of the indictment charge Guidry with Interstate Transportation for the Purpose of Prostitution. The superseding indictment also charges Guidry with Distribution of Heroin Causing Serious Bodily Harm, a crime that carries a mandatory sentence of life imprisonment. If convicted of the below charges Guidry will face the following penalties.
Count Charge Penalty1
Conspiracy to Distribute more than 100 grams of heroin and 28 grams of crack in violation of 21 U.S.C. § 846
5 - 40 years imprisonment; $4,000,000 fine.
Sex Trafficking Through Use of Force, Fraud, or Coercion in violation of 18 U.S.C. § 1591
15 years to life imprisonment; $250,000 fine.
5-8, 10, & 12
Interstate Travel for the Purpose of Prostitution in violation of 18 U.S.C. § 2421
10 years imprisonment; $250,000 fine.
11Distribution of Heroin Causing Serious Bodily Harm in violation of 21 U.S.C. § 841(a)(1) & (b)(1)(C)
Life imprisonment; $2,000,000 fine.
13
Distribution of Heroin in violation of 21 U.S.C. § 841(a)(1) & (b)(1)(C)
30 years imprisonment; $1,000,000 fine.
14-16
Possession with intent to Distribute Heroin, Cocaine, Crack Cocaine, and Marijuana in violation of 21 U.S.C. § 841
30 years imprisonment; $1,000,000 fine.
The indictment alleges that beginning in March 2012, Guidry conspired with others to distribute and did distribute controlled substances, including heroin, crack cocaine, and powder cocaine. The indictment also alleges that Guidry recruited four women into the sex trade and, on multiple occasions, transported several of them to Illinois and other cities in Wisconsin to engage in commercial sex acts.
Public information filed in Sheboygan Circuit Court alleges that once Guidry hooked female customers on his heroin, he made the drug available to them so as to induce them into prostituting for him. Once they were addicted to his heroin, Guidry was able to coerce these women to continuing prostituting for him under threat that he would no longer provide them with heroin.
This case was the result of an investigation by the Sheboygan Police Department. The case has been assigned to Assistant United States Attorneys Melvin K. Washington and Joseph R. Wall.
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.Ronald Zajac, General Counsel of Detroit's Pension Funds, and Paul Stewart, Former Pension Fund Trustee, Indicted for Bribery ConspiracyRead the Press Release
Ronald Zajac, of Northville, Michigan, the General Counsel of Detroit's two pension funds, and Paul Stewart, of Detroit, Michigan, a former Trustee of Detroit's Police and Fire Retirement System were both charged today in a superseding indictment with participating in a bribery and kickback conspiracy involving over $200 million in investments before the two City of Detroit pension funds United States Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by FBI Special Agent in Charge Robert D. Foley, III.
Zajac and Stewart were added as defendants in a superseding indictment that had already charged former city Treasurer Jeffrey Beasley and investment sponsor Roy Dixon with the bribery and kickback conspiracy. The charges were set forth in a Fifth Superseding Indictment issued by a Detroit federal Grand Jury today.
United States Attorney McQuade said, "Public officials entrusted with billions of dollars in employees’ pension money cannot take bribes and kickbacks to influence their investment decisions.”
Robert Foley, Special Agent in Charge, Federal Bureau of Investigation said, "Those who are fortunate enough to serve in positions of public trust are expected to act with honesty and integrity at all times. The FBI is committed to holding these individuals accountable for abuses including acts of bribery, kickbacks and other serious crimes."
Zajac served as the General Counsel of Detroit's two pension funds, the General Retirement System and the Police and Fire Retirement System, from 1982 through 2012. In November 2012, the Board of Trustees of the Police and Fire Retirement System terminated Zajac as General Counsel. Zajac still serves as the General Counsel of the General Retirement System. Stewart was a City of Detroit police officer for more than 30 years and served as a Trustee of the Police and Fire Retirement System from 2004 to 2011. Stewart also served as the Vice President of the Detroit Police Officers Association, the union that represents most of Detroit's police force.
According to the 13-count superseding indictment, between January 2006 and April 2009, defendants Zajac and Stewart conspired with Beasley, Dixon, and other individuals to defraud current and retired employees of the City of Detroit of their right to the honest services of former Mayor Kwame Kilpatrick, Beasley, Stewart, and other Trustees free from bribery and corruption. During the the conspiracy, Stewart accepted thousands of dollars in cash, trips, entertainment, and other things of value from people seeking investments from the Police and Fire Retirement System. Stewart accepted a $5,000 casino chip, a Christmas basket that included an envelope with thousands of dollars in cash, a cash payment of $2,500 during a trip to New York City, a cash payment of $2,500 during a trip to Florida, an excursion to the Bahamas for Stewart and his mistress, and a trip to Naples, Florida for Stewart and his mistress. In addition, Stewart accepted a "birthday present" of $5,000 in cash at a party at the Atheneum Hotel. Zajac organized the party, and Zajac solicited and collected the cash from people having business before the Boards of Trustees of the pension funds. Zajac also collected and delivered an additional $5,000 in cash for a second pension fund trustee at the same party. At a party in January 2007, Zajac collected and delivered thousands of dollars in cash for former Treasurer and Trustee Beasley.
Also during the conspiracy, Zajac sought to curry favor with Beasley and former Mayor Kilpatrick by raising more than $70,000 for the Kilpatrick Civic Fund. Zajac directed and forced people having business before the pension funds to spend thousands of dollars to entertain trustees of both pension funds. Zajac forced one trustee to pay more than $10,000 for limousines for trustees during a trip to New York City.
Soon after giving Beasley, Stewart, and a third trustee thousands of dollars in cash at their "birthday parties," the trustees voted to give Zajac a substantial raise as General Counsel of the two pension funds. As a result of the raise, Zajac was receiving over $400,000 in compensation per year from the pension funds.
Upon conviction, both Zajac and Stewart face a maximum of twenty years in prison and a fine of up to $250,000 on the charge of conspiracy to commit honest services mail and wire fraud. The superseding indictment seeks forfeiture of the proceeds of the conspiracy received by Zajac, Stewart, and their co-conspirators.
The case was investigated by agents of the FBI, the Department of Labor, and the Internal Revenue Service. It is being prosecuted by Assistant United States Attorneys Robert Cares and David A. Gardey.
Rochester man sentenced for his role in mark and hudson streets drug conspiracyRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Keith “Kiki” Ruther, 34, of Rochester, who was convicted of conspiring to distribute cocaine, was sentenced to 151 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Douglas E. Gregory, who is handling the case, stated that Ruther sold cocaine and supplied cocaine to several associates of a street crew that controlled the drug trade in the area of Mark Street and Hudson Avenue in the city of Rochester for several years. Ruther also possessed a firearm in connection with the drug trafficking offense.
Much of the street level drug activity occurred in plain view on the sidewalk in front of the Hello Hudson Mini Mart at 519 Hudson Avenue, as well as surrounding street corners and parking lots. The group also utilized rental apartments and abandoned houses from which they stored and sold cocaine and crack cocaine on a daily basis. Law enforcement responded to repeated citizen calls for service to combat open the air drug sales and shootings in the general area of Mark and Hudson Streets.
“This case is yet another example of our Office’s commitment to ridding the streets of our community of those who would harm it,” said U.S. Attorney Hochul. “We stand ready, willing and able to assist our local partners in bringing the full weight of federal law enforcement against the most dangerous and violent criminals.”
The sentencing is the culmination of an investigation on the part of the Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Scott Heagney and the Rochester Police Department, under the direction of Chief James Sheppard.Randallstown Man Convicted of Bankruptcy Fraud and Filing False Tax ReturnsRead the Press Release
Failed to Report Income and Assets Totaling Over $740,000 and Attempted to Fraudulently Discharge Debts of Over $1.1 million through BankruptcyBaltimore, Maryland - A federal jury today convicted Ricardo O. Curry II, age 42, of Randallstown, Maryland, on two counts of assisting in the filing of a false tax return, four counts of bankruptcy fraud, four counts of falsifying bankruptcy records and one count of false testimony under oath at a bankruptcy proceeding. After the jury returned its verdict, U.S. District Judge William D. Quarles, Jr. ordered that Curry be detained pending sentencing and he was taken into custody
The guilty verdict was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and the Baltimore Office of the United States Trustee Program, the Department of Justice agency that supervises bankruptcy cases and trustees.
According to evidence presented at his three day trial, Curry worked for Peerless Real Estate Services, Inc., a North Carolina corporation that oversaw the sale of property in North Carolina, including the Village of Penland development, which contained more than 2000 lots. Curry recruited at least 12 investors to purchase at least 23 lots in the Village of Penland and he received referral fees based on these sales. In 2005, 2006, and 2007, respectively, Curry earned referral fees of $41,455, $43,200, and $330,546. Although Curry reported the income he received as a sales representative for a pharmaceutical company on his 2005, 2006, and 2007 tax returns, he failed to report these referral fees, totaling $415,201.
On March 12, 2009, Curry filed for Chapter 13 bankruptcy in the United States Bankruptcy Court for the District of Maryland. On April 21, 2009, Curry filed a Statement of Financial Affairs with the bankruptcy court, which reported the income he earned as a pharmaceutical sales representative for tax years 2005, 2006, and 2007, but failed to report the $415,201 he earned in referral fees from Peerless. Curry also failed to disclose his ownership interest in a home worth approximately $325,000. On July 28, 2009, Curry filed an Amended Statement of Financial Affairs, which again failed to disclose the $415,201 in referral fees, and his ownership interest in the home. On October 20, 2009, Curry testified under oath at meeting of the creditors, falsely stating that all of his assets were listed in his bankruptcy filing, when in fact, Curry knew that he had not reported the referral fees, nor his home ownership. Ultimately, Curry never provided documents to the trustee overseeing his bankruptcy case regarding either the referral fee income or the home, and as a result, on April 12, 2010, Curry’s attempt to discharge his debts through bankruptcy was denied
Curry faces a maximum sentence of 20 years in prison on each count of falsifying bankruptcy records; five years in prison on each count of bankruptcy fraud and for false testimony; and three years in prison for each of the tax counts. Judge Quarles has scheduled sentencing for June 4, 2013, at 1:00 p.m.
United States Attorney Rod J. Rosenstein praised the IRS-CI, FBI and U.S. Trustee’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Gregory R. Bockin and David I Sharfstein, who are prosecuting the case.
Queens Doctor Arrested for Illegal Distribution of OxycodoneRead the Press Release
A Queens doctor was arrested this morning pursuant to a complaint charging him in federal court in Long Island with distribution of oxycodone, a highly-addictive prescription medicine used to treat severe pain.1 Dr. Gracia L. Mayard is scheduled to be arraigned this afternoon before United States Magistrate Judge Gary R. Brown at the U.S. Courthouse, Central Islip, New York.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Brian R. Crowell, Special Agent-in-Charge, Drug Enforcement Administration, New York and Thomas V. Dale, Commissioner, Nassau County Police Department.
This morning, as part of a federal and state prescription drug abuse initiative within the Eastern District of New York, Mayard was arrested by members of a DEA Tactical Diversion Squad, comprised of DEA agents and Nassau County Police Department detectives, on charges of illegally distributing oxycodone between January 1, 2012 and March 15, 2013. According to the complaint, during the first nine months of 2012, Mayard issued 2,953 oxycodone prescriptions – 376,469 pills – to numerous individuals, without performing any meaningful medical examination and in exchange for cash. In some cases, Mayard issued the prescriptions without even meeting the purported patients. On February 6, 2013, when members of the DEA Tactical Diversion Squad contacted Mayard, he voluntarily surrendered his DEA registration authorizing him to prescribe controlled substances. However, the complaint alleges that three weeks later, on February 28, 2013, Mayard nevertheless issued a prescription for oxycodone. On March 13, 2013, a pharmacist, in the presence of DEA agents, called Mayard about the prescription. During the call, Mayard confirmed that he had issued the prescription and provided his surrendered DEA registration number, all in an effort to persuade the pharmacist to fill the oxycodone prescription.
“Instead of abiding by the charge to ‘do no harm,’ Mayard allegedly operated under the credo ‘where’s the money,’ placing profits above patient safety,” stated United States Attorney Lynch. “When doctors participate in the diversion of addictive prescription drugs from their intended use they fuel drug abuse and addiction. We are committed to vigorous prosecution of this growing problem.” Ms. Lynch expressed her grateful appreciation to the Drug Enforcement Administration, the Nassau County Police Department and the New York State Police for their assistance in this investigation.
DEA Special Agent-in-Charge Brian R. Crowell stated, “Illegal prescribing is the white collar money making crime of the decade. We allege Dr. Mayard, with no regard to public safety, abused his position as a licensed doctor by prescribing pain medications to people with no legitimate medical need in exchange for cash. It is estimated that Dr. Mayard wrote prescriptions for over 9,000 pills of oxycodone per week affecting the availability of diverted medications in our community and on our streets. Over 26% of first time drug users began with non-medical use of prescription drugs and it is law enforcement’s concerted efforts to thwart both the supply and the demand.”
Nassau County Police Commissioner Dale stated, “Addiction to prescription opiates is a burgeoning problem here on Long Island. In Nassau County, overdoses from these types of medications almost doubles that of overdoses from heroin. Our partnership in the DEA Tactical Diversion Squad and with the United States Attorney for the Eastern District of New York ensures that law enforcement is doing their part to keep these illegally prescribed drugs out of our communities.”
If convicted, the defendant faces a maximum sentence of 20 years’ imprisonment and a $1 million fine.
In January 2012, the United States Attorney’s Office for the Eastern District of New York and the DEA, in conjunction with the five District Attorneys in this jurisdiction, the Nassau and Suffolk County Police Departments, the New York City Police Department and New York State Police, along with other key federal, state and local government partners, launched the Prescription Drug Initiative to mount a comprehensive response to what the U.S. Department of Health and Human Services’ Centers for Disease Control and Prevention has called an epidemic increase in the abuse of so-called opioid analgesics. So far, the Prescription Drug Initiative has brought over 120 federal and local criminal prosecutions, taken civil enforcement action against a pharmacy, removed prescription authority from numerous rogue doctors, and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The Initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
The government’s case is being prosecuted by Assistant United States Attorney Allen L. Bode.
The Defendant:
Name: GRACIA L. MAYARD
Age: 61_____________________________
1 The charges are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Police Officer Pleads Guilty to Federal Child Pornography OffensesRead the Press Release
FORT WORTH, Texas — Philip Woolery, a former officer with the Grapevine, Texas, Police Department, appeared in federal court in Fort Worth today and pleaded guilty to an Information charging one count of production, and one count of possession, of child pornography. Woolery has been in custody since his arrest in October 2012 at his residence in Crowley, Texas, by U.S. Postal Inspectors during the execution of a federal search warrant. He faces a total maximum statutory penalty of not less than 15 or more than 40 years in federal prison, a $500,000 fine and a lifetime of supervised release. Sentencing is set for September 17, 2013, before U.S. District Judge Terry R. Means. 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, Woolery admitted that in August 2011 he used his digital camera to record a minor male engaging in sexually explicit conduct in a swimming pool. In addition, Woolery admitted that in October 2012, he possessed a laptop computer that contained a sexually explicit image of a nude minor male and that he used that computer and the Internet to search for websites containing 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 case is being investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney A. Saleem is in charge of the prosecution.
Participant in Multi-Million Dollar Fraudulent Credit Repair Scheme Sentenced in Manhattan Federal Court to 51 Months in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that EDWIN MANSOUR, JR. was sentenced today in Manhattan federal court to 51 months in prison for his role in what is believed to be the largest known credit repair fraud scheme ever charged. His co-defendant, Denise Hudson was sentenced earlier this month to 30 months in prison. MANSOUR and Hudson were ordered to pay more than $9.3 million in restitution for the losses caused by the scheme. In October 2012, MANSOUR and Hudson each pled guilty to one count of conspiracy to commit bank fraud and Hudson also pled guilty to one count of conspiracy to cause damage to a protected computer. Their sentences were imposed by U.S. District Judge Naomi Reice Buchwald. Edwin Jacquet (“Jacquet”), the leader of the scheme, was sentenced by Judge Buchwald to 63 months in prison in December 2012.
Manhattan U.S. Attorney Preet Bharara said: “A credit score is a critical data point relied upon by banks and other lenders in deciding whether to extend loans, and a good one takes years to develop and must be carefully maintained. As a result, the integrity of credit reporting is crucial for the proper functioning of the financial system. Mansour will now pay a steep price for attempting to corrupt that system for his own benefit.”
According to the Indictment to which MANSOUR and Hudson pled guilty, statements made during their guilty pleas and sentencing proceedings, and other court documents:
Consumer reporting agencies, commonly known as “credit bureaus,” are businesses that provide reports to third parties about the credit-worthiness of consumers. Credit bureaus gather information used to generate credit reports from many sources, including “furnishers.” Furnishers include entities that provide consumers with credit, such as credit card companies, mortgage lenders, automobile lenders, and department stores.
In September and October 2007, Highway Furniture, Inc. (“Highway Furniture”), a Brooklyn-based business that Jacquet managed, became a furnisher. In July 2008, New York Funding Group Inc. (“New York Funding”), a Long Island-based business which Jacquet created, also became a furnisher. These businesses became furnishers by entering into various agreements with at least two credit bureaus that allowed Highway Furniture and New York Funding to furnish their customers’ data to the credit bureaus with which they had agreements.
From 2007 through 2009, through Highway Furniture and after that through New York Funding, MANSOUR, Hudson, and others including Jacquet, engaged in a scheme to fraudulently improve the credit histories and credit scores of thousands of individuals who were purported customers of the two entities (the “Purported Customers”). New York Funding and Highway Furniture obtained these customers principally by working through a network of brokers who promised the customers that the brokers could have their credit “repaired.” In exchange for thousands of dollars in fees, MANSOUR, Hudson, and their co-conspirators provided credit bureaus with fictitious information showing that Highway Furniture and New York Funding had extended credit to the Purported Customers and that the loans had been, or were being, repaid. In fact, the individuals had never been extended credit by Highway Furniture or New York Funding. The purpose of providing the fraudulent information to the credit bureaus was to generate fake positive credit history and, in so doing, improve the credit scores of the Purported Customers.
Over the course of the scheme, MANSOUR, Hudson, and their co-conspirators added nearly 3,000 fake lines of credit to the credit history of hundreds of Purported Customers of New York Funding and Highway Furniture. After having their credit fraudulently improved, the Purported Customers obtained more than $47.8 million in loans, including mortgages, car loans, student loans, and credit card loans. The losses sustained by the lenders who extended credit to the purported customers and who could not repay the loans, totaled more than $9.3 million.
MANSOUR, Hudson, and their co-conspirators also fraudulently improved the credit histories and credit scores of some of the Purported Customers by deleting accurate, but negative, credit information maintained by one or more credit bureaus. They did so by exploiting loopholes in a software tool called e-OSCAR that the credit bureaus made available to Highway Furniture, the purpose of which was to help resolve disputes about individuals’ credit histories. Instead, MANSOUR, Hudson, and their co-conspirators used their access to e-OSCAR as part of the fraudulent credit repair scheme. Over the course of the scheme, MANSOUR, Hudson, and their co-conspirators fraudulently deleted or modified over 4,400 legitimate debts from the credit files of hundreds of people.
In addition to the prison terms and restitution, Judge Buchwald sentenced MANSOUR, 45, of Staten Island, New York, and Hudson, 49, of Brooklyn, New York, to two years of supervised release.
Mr. Bharara praised the outstanding efforts of United States Secret Service in the investigation. He also thanked Experian Information Solutions, Inc., and TransUnion LLC for their assistance in the investigation.
In sentencing MANSOUR, Judge Buchwald commented on MANSOUR’s submission of a fraudulent claim for disaster assistance after Hurricane Sandy, and said: “What is ultimately so staggering is that he has been absolutely disrespectful of the legal system since his arrest.”
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Daniel W. Levy and Zachary A. Feingold are in charge of the prosecution.
Oklahoma City Man Pleads Guilty to Making Threat to Commit Violence in WyomingRead the Press Release
Oklahoma City, Oklahoma – Today, GLENN ALLEN KIRKHAM, 34, of Oklahoma City, Oklahoma, pled guilty to making a threat to commit violence in Casper, Wyoming, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
On January 14, 2013, public officials in and around Casper, Wyoming, received numerous reports from various sources of a threatened attack in Casper using multiple types of weapons. The threat had been posted from Oklahoma City on 4chan.org, an internet-based bulletin board service. The posting was quickly distributed throughout the social media and caused significant concern in the community. The threat came not long after Casper had experienced a homicide/suicide at a local college. As a result of the threat, officials immediately took precautions that included placing 40 schools on lockdown, notifying hospitals and nursing homes, and placing police officers at potential locations of an attack.
At the plea hearing today, Kirkham admitted that he made the threat. A sentencing hearing is set for June 19, 2013, where Kirkham faces up to five years in prison and a $250,000 fine, plus mandatory restitution for the cost of emergency responders.
This case is the result of an investigation by the Federal Bureau of Investigation and the Casper Police Department in Wyoming. The case is being prosecuted by Assistant U.S. Attorneys Mark A. Yancey and Scott E. Williams.
Oklahoma City Man Pleads Guilty to Making Threat to Commit Violence in WyomingRead the Press Release
GLENN ALLEN KIRKHAM, 34, of Oklahoma City, Oklahoma, pled guilty to making a threat to commit violence in Casper, Wyoming, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
On January 14, 2013, public officials in and around Casper, Wyoming, received numerous reports from various sources of a threatened attack in Casper using multiple types of weapons. The threat had been posted from Oklahoma City on 4chan.org, an internet-based bulletin board service. The posting was quickly distributed throughout the through social media and caused significant concern in the community. The threat came not long after Casper had experienced a homicide/suicide at a local college. As a result of the threat, officials immediately took precautions that included placing 40 schools on lockdown, notifying hospitals and nursing homes, and placing police officers at potential locations of an attack.
At the plea hearing today, Kirkham admitted that he made the threat. A sentencing hearing is set for June 19, 2013, where Kirkham faces up to five years in prison and a $250,000 fine, plus mandatory restitution for the cost of emergency responders.
This case is the result of an investigation by the Federal Bureau of Investigation and the Casper Police Department in Wyoming. The case is being prosecuted by Assistant U.S. Attorneys Mark A. Yancey and Scott E. Williams.