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18 March 2013
Lincoln Woman Sentenced in Drug ConspiracyRead the Press Release
United States Attorney Deborah R. Gilg announced that on March 18, 2013, United States District Judge John M. Gerrard sentenced Teresa Liggins, 51, of Lincoln, Nebraska, to 21 years and 10 months in prison for her conviction for conspiracy to district over 280 grams of crack cocaine.
Liggins was indicted in May of 2012 and pled guilty on December 21, 2012. Liggins was involved in distributing small quantities of crack cocaine in the Lincoln area. She was previously sentenced, and is currently serving a sentence of 3 to 6 years, for attempted delivery of a controlled substance from the Lancaster County District Court. Judge Gerrard ordered that her federal sentence be served concurrently with the state sentence. Liggins was charged with conspiring with Diwancha Brown, who has also pled guilty and is awaiting sentencing.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Kentucky Man Sentenced in Counterfeit Credit Card CaseRead the Press Release
TTOPEKA, KAN. – A Kentucky man has been sentenced to 10 months in federal prison to be followed by a year on supervised release after pleading guilty in a counterfeit credit card case, U.S. Attorney Barry Grissom said today.
Craig C. Harris, 38, Louisville, Kentucky, pleaded guilty to one count of unlawful possession of a device for making credit cards. In his plea, Harris admitted that the Kansas Highway Patrol stopped the car he was driving Oct. 29, 2012, in Wabaunsee County, Kan. A search of the car turned up a Custom Card System CCS2300 credit card embossing machine and 11 envelopes containing pre-paid Ready Debit Visa credit cards bearing the names of various individuals. In addition, investigators found four American Express Optima credits cards and one Union Bank Visa card, all bearing Harris’ name. The numbers on the cards were not legitimately issued to Harris.
Grissom commended the Kansas Highway Patrol, the FBI and Assistant U.S. Attorney Richard Hathaway for their work on the case.
Justice Department to Monitor Elections in South Carolina and Port Chester, New YorkRead the Press Release
The Justice Department announced today that it will monitor elections on March 19, 2013, in Beaufort, Berkeley, Charleston and Dorchester Counties, S.C., and in the village of Port Chester, N.Y. The monitoring will ensure compliance with the Voting Rights Act of 1965, which prohibits discrimination in the election process on the basis of race, color or membership in a minority language group. In addition, the act requires certain covered jurisdictions to provide language assistance during the election process. Port Chester is required to provide assistance in Spanish.
Under the Voting Rights Act, the Justice Department is authorized to ask the U.S. Office of Personnel Management (OPM) to send federal observers to jurisdictions that are certified by the attorney general or by a federal court order. Federal observers will be assigned to monitor polling place activities in Dorchester County based on the attorney general’s certification and in Port Chester based on a court order. The observers will watch and record activities during voting hours at polling locations in these jurisdictions, and Civil Rights Division attorneys will coordinate the federal activities and maintain contact with local election officials.
In addition, Justice Department personnel will monitor polling place activities in Beaufort, Berkeley, and Charleston Counties in South Carolina. Civil Rights Division attorneys will coordinate federal activities and maintain contact with local election officials.
In January 2008, a federal district court found that Port Chester’s at-large method of electing the village board of trustees violated the Voting Rights Act and prevented Hispanic voters from participating equally in the electoral process, resolving a lawsuit filed by the department’s Civil Rights Division and the U.S. Attorney’s Office for the Southern District of New York. In November 2009, the court ordered that a cumulative voting system be adopted to remedy this violation, and in December 2009, the department and the village entered into a consent decree, which was approved by the court. The consent decree includes an extensive voter education plan with education and training provisions to ensure that the voters in Port Chester are fully familiar with cumulative voting. The decree also requires that bilingual poll officials will be present at every polling place in Port Chester, and that all election-related materials must be translated into Spanish. The March 2013 election will be the second municipal election since the entry of the consent decree.
Each year, the Justice Department deploys hundreds of federal observers from OPM, as well as departmental staff, to monitor elections across the country. To file complaints about discriminatory voting practices, including acts of harassment or intimidation, voters may call the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.
Visit www.justice.gov/crt/voting/index.php for more information about the Voting Rights Act and other federal voting laws.
Jury Finds Attorney Paul W. Bergrin Guilty on All Counts After Racketeering TrialRead the Press Release
NEWARK, N.J. – A jury has convicted attorney Paul W. Bergrin, 57, of Nutley, N.J., of all 23 counts on which he was tried, including conspiracy to murder a witness and other racketeering, cocaine and prostitution offenses. The verdict was announced today by New Jersey U.S. Attorney Paul J. Fishman.
The jury returned the verdict after two months of trial before U.S. District Judge Dennis M. Cavanaugh in Newark federal court.
“Bergrin’s conduct was a stunning violation of his role as an officer of the court and a betrayal of his roots as a member of law enforcement,” said U.S. Attorney Fishman. “Today, the jury returned the verdict compelled by the evidence and imposed the justice he deserved. We take no joy from his tragic fall, but I am extremely proud of the work done by those in my office and agents from the FBI, IRS and DEA that led to this just result.”
According to documents filed in this case and the evidence at trial:
Bergrin turned his law firm and related corporations into a racketeering enterprise, through which he conspired to tamper with witnesses, distribute cocaine and facilitate drug trafficking, prostitution and bribery, among other things. The government also proved Bergrin conspired to murder witnesses to protect the drug trafficking enterprise, one of whom was shot to death to prevent him from testifying in court.
At sentencing, currently scheduled for July 18, 2013, Bergrin faces a mandatory sentence of life in prison on each of the following counts: count three, violent crimes in aid of racketeering; count 12, conspiring to murder a federal witness to prevent his testimony at an official proceeding; and count 13, aiding and abetting the murder of a federal witness to prevent testimony at an official proceeding. He also faces a maximum term of life in prison on four other counts.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez; Internal Revenue Service – Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen; and the Drug Enforcement Administration’s New Jersey Division – under the direction of Acting Special Agent in Charge Robert G. Koval, with the investigation leading to the conviction.
The government is represented by John Gay, Deputy Chief of the U.S. Attorney’s Office Criminal Division; Assistant U.S. Attorney Joseph N. Minish of the office’s Organized Crime/Gangs Unit; and Steven Sanders of the office’s Appeals Division in Newark.13-125
Defense counsel: Pro se; Lawrence Lustberg Esq., Newark; Bruce Levy; Amanda Protess (standby)
Judge Sentences Tax Evader to Nearly 6 Years in PrisonRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pa., has been sentenced in federal court to 70 months incarceration, three years of supervised release, and $6,000 fine on his conviction of tax evasion, United States Attorney David J. Hickton announced today.
United States District Judge Joy Flowers Conti imposed the sentence on Terrance L. Szymanski, of Pittsburgh, Pa.
According to information presented to the court, Szymanski operated a number of businesses in the names of others in order to evade both the payment and assessment of federal income tax. Szymanski's evasion resulted in a total tax loss to the United States of $2,432,161 spanning from 1997 to the present.
Assistant United States Attorney Michael A. Comber prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service - Criminal Investigation for the investigation leading to the successful prosecution of Terrance L. Szymanski.
Johnson - Pogue IndictmentRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr. announced today that a Federal Grand Jury returned an indictment charging GLENN KELLY JOHNSON, age 71, of Brookhaven, Mississippi, with conspiracy to use interstate facilities to carry on a bribery scheme, four counts of actually using telephones to promote his bribery scheme, and one count of making false statements to an agent of the Federal Bureau of Investigation who was investigating the scheme to bribe an employee of the Louisiana Department of Health and Hospitals, in violation of Title 18, United States Code, Sections 371, 1952(a)(3), and 1001(a)(2).
Also indicted was ALAN FORREST POGUE, a former employee of the Louisiana Department of Health and Hospitals, Office of Public Health, Center for Environmental Services, Onsite Wastewater Program (“OWP”). POGUE, a resident of Covington, Louisiana, age 52, was charged with one count of conspiracy to use interstate facilities to carry on a bribery scheme with JOHNSON. During the period 2008 through 2011, POGUE was employed as a Sanitation Program Coordinator (“Sanitarian”) for the OWP and his duties included inspection of residential and commercial septic tank systems. JOHNSON was a Denham Springs, Louisiana, licensed installer of individual sewage treatment systems (also known as “septic tanks”) during the period 2008 through 2011. JOHNSON operated a Denham Springs business known as Stafford Concrete.
According to the indictment, POGUE supplied JOHNSON with OWP lists of names of Louisiana citizens who were applying for permits to install individual sewage treatment systems. In return, JOHNSON made cash payments to POGUE. POGUE and JOHNSON used their office and personal cellular telephones to contact each other in order to arrange meetings where they could exchange septic tank applicant information for cash. Beginning sometime in or about May 2009, and continuing through June 2011, POGUE and JOHNSON met on a bi-weekly basis, approximately 100 times, for the purpose of exchanging septic tank applicant information for cash. According to the Indictment, JOHNSON paid POGUE approximately $50,000 during the period May 2009 through June 2011.
If convicted, JOHNSON and POGUE face up to five years imprisonment for Count One- conspiracy to use interstate facilities to promote a bribery scheme. JOHNSON also faces five years imprisonment for the conduct alleged in Counts Two through Five-unlawful use of telephones, and another five years for Count Six- making false statements to an FBI agent. POGUE faces a total of five years imprisonment and JOHNSON faces a total of 30 years imprisonment. Each defendant faces a fine up to $250,000 for each count on which they may be convicted, and forfeiture of all property, real or personal, which constitutes or is derived from proceeds traceable to the offenses charged as Counts One through Five of the Indictment, including but not limited to, at least $50,000, said amount being the proceeds obtained through bribery.
United States Attorney Cazayoux stated, “We will continue to be vigilant, along with our law enforcement partners, such as the FBI and Louisiana Inspector General in this case, for public corruption at any level of government. We cannot, and will not, tolerate situations, such as here, where a businessman seeks to gain an unfair advantage in the marketplace by bribing low-level public employees.”
Louisiana State Inspector General Stephen Street commented, “Rooting out corruption of this sort is the very reason OIG was created. Public officials taking bribes is absolutely intolerable. We will continue to relentlessly pursue those who abuse the public trust and hold them criminally accountable wherever possible. As always, we appreciate and value our partnership with Mr. Cazayoux and his staff.”
“Although public corruption in any context has no acceptable threshold, these acts affecting the environment and public health are particularly repugnant to the citizenry,” said Michael Anderson, FBI Special Agent-in-Charge.
The investigation of this matter was conducted by the Baton Rouge Resident Agency of the Federal Bureau of Investigation and the Louisiana Office of the Inspector General. The case is being prosecuted by Assistant United States Attorney Rene I. Salomon.
NOTE: An indictment is a determination by a grand jury that probable cause exists to believe that offenses have been committed by a defendant. The defendant is presumed innocent until and unless proven guilty at trial.
Georgia Tax Return Preparer Sentenced to PrisonRead the Press Release
Tyrone Thompson was sentenced today to 137 months in prison by U.S. District Judge Hugh Lawson in the Middle District of Georgia for conspiracy and filing fraudulent tax returns in order to receive tax refunds, to which the defendant was not entitled, the Justice Department and Internal Revenue Service (IRS) announced. In addition to Thompson, the scheme involved four others who had already been sentenced. Judge Lawson also ordered Thompson to pay $516,363 in restitution to the IRS. In October 2012, all five defendants pleaded guilty to filing a false claim for tax refunds. In addition, Thompson pleaded guilty to conspiracy to file false claims for tax refunds.
According to court documents, Thompson organized a scheme in which he prepared and filed fraudulent federal income tax returns using the names of other individuals. He included with the returns fictitious Schedules C reporting business income and losses and also claimed false First-Time Homebuyer Credits, in order to obtain tax refunds to which he and his co-defendants were not entitled. He directed fraudulently-obtained refunds to be deposited to his co-defendants’ bank accounts. The attempted tax refund fraud exceeded $400,000.
“Today’s lengthy jail sentence sends a strong message that those who would consider committing tax fraud should think carefully about the serious risks involved,” said Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally. “As millions of honest, hard-working taxpayers prepare and file their tax returns, they should be assured that those who would shirk their civic duty or try to ‘game the system’ will be investigated by the IRS and, where appropriate, criminally prosecuted by the Department of Justice.”
“These folks are stealing from every good tax paying citizen, and we won’t tolerate it,” said U.S. Attorney for the Middle District of Georgia Michael J. Moore.
“Tyrone Thompson organized a scheme to file fraudulent tax returns using the identities of third parties in order to receive false refunds,” said Richard Weber, Chief, IRS Criminal Investigations. “Mr. Thompson cheated the government by filing false Schedule C and false First-Time Homebuyer Credit forms to increase the fraudulent tax refunds. IRS Criminal Investigation has made investigating refund fraud a top priority and we will vigorously pursue those who undermine the integrity of the U.S. tax system.”
Assistant Attorney General Keneally commended the efforts of Special Agents of IRS - Criminal Investigation, who investigated the case, and Trial Attorneys Charles Edgar and Alexander Effendi of the Tax Division, who prosecuted the case.
Georgia Tax Return Preparer Sentenced to PrisonRead the Press Release
Sentenced to More Than 11 Years in Prison for Preparing False Tax Returns Claiming Hundreds of Thousands of Dollars in RefundsWASHINGTON – Tyrone Thompson was sentenced today to 137 months in prison by U.S. District Judge Hugh Lawson in the Middle District of Georgia for conspiracy and filing fraudulent tax returns in order to receive tax refunds, to which the defendant was not entitled, the Justice Department and Internal Revenue Service (IRS) announced. In addition to Thompson, the scheme involved four others who had already been sentenced. Judge Lawson also ordered Thompson to pay $516,363 in restitution to the IRS. In October 2012, all five defendants pleaded guilty to filing a false claim for tax refunds. In addition, Thompson pleaded guilty to conspiracy to file false claims for tax refunds.
According to court documents, Thompson organized a scheme in which he prepared and filed fraudulent federal income tax returns using the names of other individuals. He included with the returns fictitious Schedules C reporting business income and losses and also claimed false First-Time Homebuyer Credits, in order to obtain tax refunds to which he and his co-defendants were not entitled. He directed fraudulently-obtained refunds to be deposited to his co-defendants’ bank accounts. The attempted tax refund fraud exceeded $400,000.
“Today’s lengthy jail sentence sends a strong message that those who would consider committing tax fraud should think carefully about the serious risks involved,” said Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally. “As millions of honest, hard-working taxpayers prepare and file their tax returns, they should be assured that those who would shirk their civic duty or try to ‘game the system’ will be investigated by the IRS and, where appropriate, criminally prosecuted by the Department of Justice.”
“These folks are stealing from every good tax paying citizen, and we won’t tolerate it,” said U.S. Attorney for the Middle District of Georgia Michael J. Moore.
“Tyrone Thompson organized a scheme to file fraudulent tax returns using the identities of third parties in order to receive false refunds,” said Richard Weber, Chief, IRS Criminal Investigations. “Mr. Thompson cheated the government by filing false Schedule C and false First-Time Homebuyer Credit forms to increase the fraudulent tax refunds. IRS Criminal Investigation has made investigating refund fraud a top priority and we will vigorously pursue those who undermine the integrity of the U.S. tax system.”
Assistant Attorney General Keneally commended the efforts of Special Agents of IRS - Criminal Investigation, who investigated the case, and Trial Attorneys Charles Edgar and Alexander Effendi of the Tax Division, who prosecuted the case.
For additional information, please contact Sue McKinney, Public Affairs Specialist at (478) 621-2602.
Four Men Arrested for Distributing Bath Salts at Area CollegesRead the Press Release
NEWARK, N.J. – Three New Jersey men and one New York man have been arrested in connection with a scheme to allegedly distribute kilogram amounts a controlled substance commonly known as “bath salts,” U.S. Attorney Paul J. Fishman said today.
Kyle Jobes, 23, of East Brunswick, N.J., and Charles Knierim, 24, of Old Bridge, N.J., were arrested on March 14, 2013; Benjamin Caturano, 22, of New Brunswick, N.J., and Conor Healion, 22, of West Hempstead, N.Y. were arrested on March 15, 2013. All are charged in connection with their respective roles in a conspiracy to distribute Methylenedioxypryovalerone (“MDPV”) in New Jersey and New York. “Bath salts” is the street name for a family of designer drugs that have effects similar to amphetamine and cocaine. Their white and yellow crystals often resemble legal bath salts, like Epsom salts, but are chemically different.
The current investigation involved a package containing approximately two kilograms of MDPV that was intercepted by law enforcement. The package originated in the People’s Republic of China and was supposed to be shipped to an address in Old Bridge. Law enforcement removed the MDPV and replaced it was sham drugs that resembled bath salts. On March 14, 2013, law enforcement delivered the package to where it was addressed and watched over the next two days as Knierim, Jobes, Caturano, and Healion transferred the package amongst themselves. After their arrests, a number of the defendants admitted that they had distributed multiple kilograms of bath salts over the past year and that some of the drugs were sold at local college campuses, including Rutgers University and Monmouth University. As part of the investigation, agents of Immigration and Customs Enforcement-Homeland Security Investigations seized more than $90,000 in cash and two luxury automobiles obtained with proceeds from the drug conspiracy.
Knierim made his initial appearance before U.S. Magistrate Judge Michael A. Hammer in Newark federal court on March 15, 2013. Jobes, Caturano and Healion made their initial appearance before U.S. Magistrate Judge Falk in Newark federal court today.
U.S. Attorney Fishman credited special agents of the ICE-HSI, under the direction of Special Agent in Charge Andrew McLees, with the investigation leading to the arrests, assisted by inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Maria Kelokates, and U.S. Customs and Border Protection, under the direction of Robert E. Perez, Director of CBP's New York Field Operations.
The Government is represented by Assistant U.S. Attorney Danielle M. Corcione of the U.S. Attorney’s General Crimes Unit in Newark, N.J.
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Defense counsel: Jobes: Wanda Akin Esq., Newark
Caturano: Frank Arleo Esq., West Orange, N.J.
Healion: Ronald Kliegerman Esq., New YorkJobes, Kyle Complaint
Foster Man Sentenced to 13 Years in Federal Prison for Bank Robbery, Violation of Supervised ReleaseRead the Press Release
PROVIDENCE, R.I. – James W. Snoke, 49, of Foster, was sentenced today to 151 months in federal prison for robbing a Cranston bank while claiming to be armed with an explosive device in November 2011, announced United States Attorney Peter F. Neronha; Cranston Police Chief Colonel Marco Palombo, Jr.; Foster Police Chief Robert E. Coyne, Jr.; Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police; and Richard Deslauriers, Special Agent in Charge of the FBI’s Boston Field Office.
At sentencing, U.S. District Court Judge William E. Smith also ordered Snoke to serve a consecutive sentence of six months in federal prison for violating the terms of his supervised release after he completed serving a 70 month federal prison sentence imposed in November 2004 for his role as getaway driver during a bank robbery in Providence in February 2004. Snoke was also ordered to serve one year of supervised release upon completion of his most recent prison sentence.
At the time of his guilty plea on May 30, 2012, Snoke admitted to the court that on November 18, 2011, he approached a teller in a Cranston branch office of BankRI demanding that he be given fifties and one hundred dollar bills and no dye packs, while threatening the teller by displaying a device he claimed was a bomb. A second teller was summonsed who placed a quantity of cash inside a black bag provided by Snoke. Snoke fled the bank with the bag which contained $2,365 in cash and the device he claimed was a bomb.
According to information presented to the court, Cranston Police provided a still photograph of the robber obtained from the bank’s surveillance system as part of their investigation to the Rhode Island Department of Corrections. A correctional officer identified the person in the photograph as James Snoke, a former inmate at the state prison.
On November 21, 2011, members of the Cranston Police Department, Foster Police Department and Rhode Island State Police executed a court authorized search of Snoke’s Foster residence. Several pieces of evidence were seized during the search. The next day, Rhode Island State Police located Snoke in East Providence and arrested him. He has been detained since his arrest.
United States Attorney Peter F. Neronha commended the collaboration between law enforcement from the Cranston and Foster Police Departments, Rhode Island State Police and the FBI which led to the arrest and successful prosecution of this defendant.
The case was prosecuted by Assistant U.S. Attorney Stephen G. Dambruch.
Contact: 401-709-5357
[email protected]Former Vice President at Prism Career Institute Sentenced to Two Years in Prison for Stealing More Than $400,000Read the Press Release
CAMDEN, N.J. – A former vice president of operations at Prism Career Institute, a private, post-secondary educational institution with campuses in Cherry Hill, N.J., Egg Harbor Township, N.J., and Pennsylvania, was sentenced today to 24 months in prison for stealing more than $400,000 from her employer between 2008 and 2011, U.S. Attorney Paul J. Fishman announced.
Diane Bowler, 53, of Sewell, N.J., previously pleaded guilty before U.S. District Judge Renée Marie Bumb to embezzling, stealing and obtaining by fraud money belonging to Prism Career Institute, which receives federal funds from the U.S. Department of Education. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Diane Bowler was a regional vice president of operations at Prism, authorized to make purchases on behalf of Prism with her personal credit cards and then submit the receipts of these purchases to Prism for reimbursement. Bowler admitted that she stole more than $400,000 from Prism by submitting fraudulent reimbursement requests for purchases of supplies, furniture, equipment, and other items that were never received by Prism. She falsified invoices by cutting and pasting new dates and invoice numbers onto prior receipts for purchases and by fraudulently creating invoices for certain vendors with which Prism no longer did business. Bowler would forge the signature of the CEO of Prism on reimbursement checks and in some instances signed the checks herself before depositing the money into her personal bank account.
In addition to the prison term, Judge Bumb sentenced Bowler to three years of supervised release and ordered her to pay $551,596 in restitution.
U.S. Attorney Fishman credited special agents of the FBI’s Resident Agency in Cherry
Hill, N.J., under the direction of Acting Special Agent in Charge John Brosnan; and special agents of the Department of Education - Office of the Inspector General, under the direction of Special Agent in Charge Brian Hickey, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Matthew J. Skahill of the Special Prosecutions Division in Camden.
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Defense counsel: Richard Sparaco Esq., Cherry Hill, N.J.Former Suburban Chicago Police Chief ArrestedRead the Press Release
New Charges of Witness Tampering, Obstruction of Justice
SPRINGFIELD, Ill. – The former police chief for Country Club Hills, Ill., was arrested on Friday, Mar. 15, 2013, and was ordered to remain in custody pending a court hearing scheduled on Monday, Mar. 25, 2013, before U.S. Magistrate Judge Byron Cudmore. Regina R. Evans, 50, was charged by federal criminal complaint with conspiracy to commit witness tampering and obstruction of justice as well as one count each of witness tampering and obstruction of justice. Evans appeared before Judge Cudmore late Friday, Mar. 15.
Evans and her husband, Ronald W. Evans Jr., 45, were previously charged in a second superseding indictment returned by the grand jury on Feb. 2, 2013, in which both Regina and Ronald were charged with one count of conspiracy to commit wire fraud and three counts of wire fraud and two counts of money laundering. The indictment alleges the couple defrauded a grant program administered by the Illinois Department of Commerce and Economic Opportunity (DCEO.) The indictment alleges the couple fraudulently used the $1,250,000 awarded in 2009 under the Employment Opportunities Grant Program. The February 2013 indictment superseded an indictment returned in June 2012, which charged Ronald as well as his wife, who was initially indicted in April 2012, charged with mail fraud and two counts of money laundering.
The affidavit filed in support of the recent criminal complaint alleges that Evans directed a witness to give false testimony in the continuation of the investigation involving uncharged persons and offenses. According to the affidavit, as part of an ongoing grand jury investigation, and following the grand jury return of the superseding indictment in June 2012, investigators identified and obtained evidence of potential uncharged money laundering offenses related to bank and bank transaction records associated with an Evans bank account for We Are Our Brothers Keeper grant funds. Records revealed that between Nov. 1, 2009 and Dec. 31, 2009, a total of more than $90,000 in checks was allegedly issued to associates of the Evanses. More than $50,000 was allegedly cashed at the bank where a grant account was held and proceeds of a check to an associate were converted to cash and allegedly deposited back into an account controlled by the Evanses.
The affidavit details various testimony provided by a close associate of Regina Evans. The associate, identified as “Individual A” in the affidavit was interviewed by law enforcement at various times, beginning on Mar. 23, 2012, and testified before the grand jury in February 2013.
In early February 2013, “Individual A” was interviewed again and admitted that “A” did no training for the grant program and that at Regina Evans’ direction, checks were cashed and the money was returned to Evans. Further, the affidavit alleges that Regina instructed “Individual A” to tell investigators that “A” received the checks for teaching ‘soft skills’ classes and that “A” used the money to pay bills.
Assistant U.S. Attorney Timothy A. Bass is prosecuting the cases on behalf of the U.S. Attorney’s Office for the Central District of Illinois. The ongoing investigation is being conducted by participating agencies of the Central District of Illinois’ U.S. Attorney’s Office’s Public Corruption Task Force including the U.S. Postal Inspection Service, Chicago Division; the Internal Revenue Service Criminal Investigations; and the Illinois Secretary of State Office of Inspector General. The Illinois Department of Commerce and Economic Development is also cooperating in the investigation. Individuals who wish to provide information to law enforcement regarding matters of public corruption are urged to call the U.S. Attorney’s Office at 217-492-4450.
According to the second superseding indictment, at the time of the alleged fraud, from February 2009 to June 2010, Regina and Ronald Evans owned various for-profit and not-for-profit entities, including the Prime Time Group, Inc., the Regal Theater, LLC. and We Are Our Brother’s Keeper (WAOBK.) In February 2009, on behalf of WAOBK, Evans and her husband applied for grant funding offered under the Employment Opportunities Grant Program. The grant agreement provided for an estimated 40 project participants to focus on bricklaying and electrical pre-apprenticeship training and GED preparation, and a project location at the Regal Theater. In September 2009, DCEO disbursed the $1,250,000 award for the two-year period, beginning on June 1, 2009, and ending on May 31, 2011.
In fact, according to the indictment, both Regina and Ronald Evans well knew that little, if any, of the EOGP training would be or was completed. Instead, the indictment alleges that the defendants concealed their true financial status and that of their various business interests from DCEO and their intent to use a substantial portion of the grant funds shortly after their disbursement for repayment of indebtedness, including delinquent mortgage indebtedness for the Regal Theater.
If convicted, the offense of conspiracy to commit witness tampering and obstruction of justice carries a statutory penalty of up to five years in prison; for witness tampering the penalty is up to 20 years in prison; and for obstruction of justice, the penalty is up to 10 years in prison. If convicted of any of these charged offenses, the penalty is served consecutive to any sentence ordered for the underlying offense.
Members of the public are reminded that a complaint and indictment are merely accusations; the defendants are presumed innocent unless proven guilty.
Former Raleigh Real Estate Developer and Entrepreneur Pleads Guilty to Conspiring to Defraud Investors and BanksRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announces that today in federal court former real estate developer JAMES THOMAS WEBB, 52 of Miami, pled guilty to Conspiracy to Commit Bank and Wire Fraud before Chief United States District Judge James C. Dever, III.
The Indictment charges that between 2002 and 2006, WEBB operated various real estate companies, including Alpine Properties, LLC and Webb Builders, LLC for a profit. WEBB promised investors in multiple states quick, large, and safe financial gains by investing money with him. WEBB promised investors that he would use their money to purchase, renovate, and resell properties to first-time home buyers in various states, including North Carolina, Virginia, and Tennessee. WEBB caused investors to take out loans on properties that he and his companies had allegedly renovated.
The indictment further charges that despite alleged philanthropic and humanitarian objectives, that WEBB carried out a fraud upon both the investors who gave cash to WEBB, and the banks and lenders who WEBB caused to disburse loan proceeds. According to the indictment, WEBB conspired with former attorney, Amy Robinson, to falsify closing statements associated with the loan transactions. The Indictment charges that the closing statements falsified various facts, including the amount of money paid to WEBB on the transactions. WEBB is also alleged to have conspired with a former appraiser, Larry Max McDaniel, and his associate, Jackie Gale Weaver, to falsify appraisal reports that were given to banks and lenders in connection with investor loans. The appraisal reports are alleged to have falsely stated that McDaniel had physically viewed the properties, when in fact he had not. The indictment also alleges that the properties sold to investors and financed by banks were not always completed or in the condition represented in the appraisal reports.
During the course of the alleged scheme, the indictment charges that WEBB lived lavishly, residing in a multi-million dollar mansion, driving expensive vehicles including a Bentley, traveling extensively, and otherwise paying himself handsomely. WEBB is alleged to have abruptly left North Carolina for Florida in 2004, where he continued to market his services under new company names.
Based upon WEBB’s statements and representations to investors, various individuals collectively invested approximately $10 Million dollars with WEBB and his companies. Additionally, banks and lenders disbursed approximately $20 million in loans, leaving investors holding millions in debt. The indictment alleges that WEBB left various neighborhoods in North Carolina and Virginia blighted with boarded up and dilapidated homes, many of which were ultimately demolished as uninhabitable.
At the sentencing in this case, which the court has presently scheduled for July of 2013, WEBB faces a maximum term of imprisonment of 30 years and $1 Million in fines. WEBB may also be ordered to make restitution to the victims of the conspiracy.
As noted above, WEBB’s case relates to the pending cases against former closing attorney AMY ROBINSON, 35 of Rolesville, former real estate appraiser, JACKIE GALE WEAVER, 55, of West Hamlin, West Virginia, and former national appraisal instructor, LARRY MAX MCDANIEL, 70, of Vienna, West Virginia, who have each pleaded guilty to their roles in the scheme. ROBINSON faces up to five years in prison and a $250,000 fine on the charge of Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 371. WEAVER faces up to five years in prison and a $250,000 fine for Conspiring to Make False Statements on Loans in violation of Title 18, United States Code, Section 371. MCDANIEL faces up to 30 years in prison and $1 Million fine for Making False Statements on Loans and Aiding and Abetting, in violation of Title 18, United States Code, Section 1014 and 2. The sentencings in the cases of ROBINSON, WEAVER, and MCDANIEL have also been scheduled for June of 2013.
If you believe that you are a victim in connection with the case against WEBB, ROBINSON, WEAVER, or MCDANIEL, please contact the Victim/Witness Coordinator for the United States Attorney’s Office at (919) 856-4003.
Investigation of this case was conducted by the Federal Bureau of Investigation, the United States Postal Inspection Service, the United States Department of Housing and Urban Development Office of the Inspector General, and the Federal Deposit Insurance Corporation Office of the Inspector General, with the assistance of the North Carolina Appraisal Board. Assistant United States Attorney William M. Gilmore is prosecuting the case.
Former Manager of Virginia Beach Mortgage Brokerage Firm Pleads Guilty to FraudRead the Press Release
NORFOLK, Va. – David Burrus, Jr., age 39, a former Virginia Beach resident now living in Burns, TN, pleaded guilty today in Norfolk federal court to conspiring to commit mail and wire fraud in conjunction with mortgage loans he obtained from 2005 through 2007.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Royce Curtin, Special Agent in Charge of the FBI’s Norfolk Field Office, and Joseph Clarke, Special Agent in Charge of the Office of Inspector General, Department of Housing and Urban Development, Mid-Atlantic Region, made the announcement after Burrus entered a guilty plea to count one of the seven count pending indictment before Senior United States District Judge Robert G. Doumar. Burrus faces a maximum penalty of 30 years in prison when he is sentenced on July 8, 2013.
According to court documents, David Burrus, Jr., managed and ran a Virginia Beach branch office of a mortgage brokerage firm headquartered in Tennessee from 2003 through 2007. Burrus also co-owned a title and escrow company which conducted real estate closings for many of the loans originated by loan officers supervised by Burrus. Burrus also owned another entity, Southern Living Properties, which he used to receive monies from numerous fraudulent real estate transactions that he conducted.
From 2005 through 2007, Burrus sought and obtained numerous mortgage loans in both his and his spouse's names. In the course of these transactions, Burrus agreed to buy local properties for more than the sellers' listing prices, provided that the transactions were structured to ensure that any extra sales proceeds were paid to Southern Living Properties at the real estate closings. This ensured that, unbeknownst to the mortgage lenders, Burrus received a substantial portion of the loan proceeds when buying properties in his or his spouse's name.
To induce lenders to approve various requests for mortgage loans, Burrus also submitted false loan applications, forged and fictitious leases purporting to show his properties were generating rental income, and false Southern Living invoices billing property sellers for work and services that had never been performed. Burrus also made material misrepresentations to mortgage lenders about his and his spouse's income and liabilities, his rental income, and about his spouse's intent to occupy properties purchased as her primary residence.
Shortly before the crash of the real estate market, Burrus also sought to sell properties in his portfolio to his associates and offered to pay kickbacks to buyers to facilitate sales. Rhonda Wyland, age 44, of Virginia Beach and then a loan officer working for Burrus, agreed to purchase one such property in Portsmouth, VA, in exchange for a kickback of $140,000. Wyland also made false statements to obtain a mortgage loan to complete this transaction and, after receiving the $140,000 kickback, defaulted upon the loan. On December 12, 2012, Wyland pled guilty to a criminal information charging her with conspiracy to commit wire fraud. Wyland faces a maximum penalty of 5 years in prison when she is sentenced by Chief United States District Judge Rebecca Beach Smith on April 5, 2013.
As a result of his activities, Burrus obtained mortgage loans to purchase seventeen properties in Hampton Roads and then defaulted upon those loans. The known losses stemming from these loans are approximately $2,036,296.00.
This case was investigated by the FBI’s Norfolk Field Office and HUD's Office of Inspector General. Assistant United States Attorney Robert Krask is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former Jackson Attorney Clay Mccormack Indicted for Bank Fraud, Making False StatementsRead the Press Release
Jackson, TN – Clay McCormack, 49, of Jackson, TN, was indicted today by a federal grand jury for his role in a scheme to fraudulently obtain loan proceeds from federally insured mortgage lenders, announced U.S. Attorney Edward L. Stanton III.
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The indictment alleges that as early as October 2007, McCormack entered into a criminal conspiracy with James Lee Bishop, a local real estate investor. Bishop would recruit individuals or limited liability companies to purchase real property for the purpose of investment. While acting as the closing attorney for Teel, McCormack and Maroney, a law firm in Jackson, TN, McCormack would indicate on the HUD-1 reporting documentation that certain lenders were paid off via check as a result of the closing. He would then void those checks, or have others void the checks, within days and reissue the checks to Bishop.
This money was then used by Bishop to provide the funds at closing on behalf of the borrowers; and the paperwork would fraudulently reflect that the funds had actually been provided by the borrowers. McCormack would provide a letter to the new lender indicating that they were in first lien position on the property.
Counts one and two of the indictment allege that McCormack’s scheme defrauded Community Bank, 3200 North Highland Ave, Jackson, TN and FirstSouth Bank, 1862 Hwy. 45 Bypass, Jackson, TN. Counts three and four allege that he created false documentation and submitted it to the banks in furtherance of his crime.
McCormack faces up to 30 years in prison and a one million dollar fine for each of the two bank fraud counts; and up to five years in prison and a $250,000 fine for each of the two counts of making false statements. The government is also seeking a criminal forfeiture money judgment of $3,832,366.88 representing the amount involved in the two bank fraud charges.
This case was investigated by the FBI Memphis, Jackson Resident Agency and by the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorney David Henry on behalf of the government.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Former HSCO Deputy Lands in Federal Prison for Scheme to Steal NarcoticsRead the Press Release
HOUSTON - Richard Bryan Nutt, 45, a former Harris County Sheriff’s Office (HSCO) deputy, has been sentenced to federal prison for conspiring with others to use his position as a law enforcement officer to steal drug loads from dealers and split the proceeds with others, United States Attorney Kenneth Magidson announced today. Nutt pleaded guilty Feb. 7, 2011.
Today, United States District Judge Vanessa Gilmore sentenced him to 46 months in prison to be followed by a one-year-term of supervised release. At sentencing, Judge Gilmore took into consideration that it was his first offense and that Nutt has more than 20 years in law enforcement and military service. At the hearing, Nutt apologized to the court and to his family.
In late 2010, the Houston Police Department (HPD) obtained information that members of law enforcement were robbing shipments of narcotics in Houston and subsequently initiated a sting operation. On Dec. 15, 2010, then Deputy Nutt met with his co-conspirators, at which time they learned a vehicle containing narcotics or narcotics proceeds would be driving through Houston. They agreed to stop the vehicle, a Chrysler Aspen SUV, with the assistance of Deputy Nutt. He was to conduct a traffic stop of the SUV, which was reportedly to be driven by a drug dealer from Mexico, and pretend to arrest the driver then release him while the co-defendants took the vehicle containing the drugs. The conspirators would then split the money from the sale of the drugs.
Later that day, Nutt, in full uniform and driving a silver pickup equipped with red and blue emergency lights, spotted and followed the Chrysler Aspen SUV as it drove into a parking lot of a Houston area shopping center. Once parked, the SUV driver, actually an undercover HPD officer, abandoned the SUV. A package thought to contain cocaine was then transferred from the SUV to a blue Nissan Altima. Nutt entered the vehicle as it drove off the lot and it was soon stopped by HPD officers. The package, which actually contained fake cocaine, was found and removed from under the passenger seat where Nutt sat. Nutt and his co-defendants were arrested by law enforcement officers and subsequently charged federally.
Others involved in the scheme have all pleaded guilty and also been sentenced to prison.
Nutt, previously released on bond, was allowed to continue on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the Internal Affairs and Narcotics Divisions of the Houston Police Department with the assistance of the FBI. The case was prosecuted by Assistant United States Attorney James McAlister.
Former Fund Manager Sentenced to 10 Years in Federal Prison in Investment Fraud Scheme That Cost Victims More Than $24 MillionRead the Press Release
LOS ANGELES – A former investment fund manager and radio personality who admitted bilking investors out of millions of dollars by falsely promising to purchase corporate bonds backed by the Troubled Asset Relief Program (TARP) was sentenced this afternoon to 120 months in federal prison.
John Farahi, 56, of Bel Air Estates, who operated the Beverly Hills-based New Point Financial Services, Inc. and had a regular radio show on KIRN-AM, was sentenced by United States District Judge Phillip S. Gutierrez. In addition to the 10-year prison term, Judge Gutierrez ordered Farahi to pay $24,366,617 in restitution to 59 victims.
Farahi pleaded guilty last June to four felony counts – mail fraud, loan fraud, selling unregistered securities and conspiracy to obstruct justice while collaborating with his corporate counsel to cover-up the fraud. In a plea agreement filed in United States District Court, Farahi acknowledged that the scheme caused losses of more than $7 million, but prosecutors successfully demonstrated that the actual losses were well over $24 million.
When he pleaded guilty, Farahi admitted that he engaged in a long-running scheme that defrauded victims by using their funds for a range of unauthorized purposes, including paying off prior investors and subsidizing options futures trading. Farahi also admitted that he drew down on personal lines of credit based upon false statements to federally insured banks, including Bank of America, Sun West Bank and U.S. Bank. Farahi also acknowledged that he violated federal securities laws by selling unregistered securities and failing to comply with the SEC’s rules and regulations for selling unregistered securities. Farahi further admitted that he conspired with his attorney to obstruct an SEC investigation by, among other things, altering documents that were turned over to the SEC and providing false and misleading testimony under oath to the SEC on three separate occasions.
Attorney David Tamman, 46, of Santa Monica, was found guilty following trial last year of 10 counts, including obstruction of justice, altering records in a federal investigation, and being an accessory after the fact to Farahi’s crimes. The evidence presented at the trial showed that Tamman conspired with Farahi to obstruct the SEC investigation into Farahi’s fraud scheme. Tamman, who was suspended from practicing law earlier this year by the California State Bar, served as outside counsel for Farahi’s investment company and was a partner at Nixon Peabody. Tamman is scheduled to be sentenced by Judge Gutierrez on May 20.
The case against Farahi and Tamman is the result of an investigation by the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) and the Federal Bureau of Investigation. The SEC provided substantial assistance during the investigation.
The SEC filed a federal civil complaint alleging violations of the federal securities laws against Farahi and others in January 2010. The lawsuit alleged that Farahi and others conducted an unregistered offering fraud aimed at Iranian-Americans in the Los Angeles area (see: http://www.sec.gov/news/press/2010/2010-3.htm). The SEC subsequently obtained a permanent injunction, as well as orders freezing Farahi’s and New Point’s assets and appointing a receiver over New Point Financial Services.
Release No. 13-036
Former Chairman and Ceo of West End Financial Advisors Sentenced in Manhattan Federal Court to 42 Months in Prison for Securities FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that WILLIAM LANDBERG, former Chairman and Chief Executive Officer (“CEO”) of West End Financial Advisors, LLC (“West End”), was sentenced today to 42 months in prison in connection with an $8.7 million investment scheme. LANDBERG pled guilty in November 2011 to one count of securities fraud before U.S. District Judge Laura Taylor Swain, who also imposed today’s sentence.
According to the Information filed in Manhattan federal court:
West End was a boutique financial services firm located in New York, New York, specializing in alternative investment opportunities and traditional asset management for various types of clients, including institutions and high net worth individuals. West End served as the investment manager for various partnerships it established as investment vehicles or investment funds and raised money for them through the sale of limited partnership interests. In addition to serving as West End's Chairman, CEO, and Manager, LANDBERG also served as the Chairman of Sentinel Investment Management Corporation (“Sentinel”), an investment adviser registered with the U.S. Securities and Exchange Commission (the “SEC”) that shared office space with West End.
Among the funds managed by West End was the West End/Mercury Short Term Mortgage Fund LP (the “Hard Money Fund”). According to a private placement memorandum issued to investors by the Hard Money Fund (the “Hard Money Fund PPM”), its objective was to “achieve short term, high-yield interest income through the making, servicing, purchasing, selling and repurchasing, and purchasing and selling participation in, mortgage loans” (the “Mortgage Loans”). According to the Hard Money Fund PPM, the Hard Money Fund would sell mortgage loans on particular properties to MCC Funding, Inc. (“MCC Funding”), a wholly owned subsidiary of the Hard Money Fund. MCC Funding would purchase the Mortgage Loans using capital contributions made to MCC Funding by Hard Money Fund investors, as well as principal and interest advances it received from the New York branch of West LB AG (“West LB”), a bank headquartered in Germany. In return, West LB would receive the Mortgage Loans as collateral for the fund advances.
The Hard Money Fund PPM specifically stated that MCC Funding would use the proceeds from West LB “only to purchase Mortgage Loans from the [Hard Money] Fund and to satisfy reserve and fee obligations under the Credit and Security Agreement.” Instead, from January 2009 to April 2009, LANDBERG obtained three loan advances from West LB totaling $8.7 million – all purportedly for Hard Money Fund transactions – and diverted the funds to other uses, including for his own benefit. He also put some of the money into a separate fund managed by West End.
In addition to his prison term, LANDBERG, 61, of New York, New York, was sentenced to three years of supervised release, with 18 months on home confinement. He was also ordered to forfeit $8.7 million, which is the amount he misappropriated during the scheme, and pay $1.125 million in restitution.
Mr. Bharara praised the work of the Federal Bureau of Investigation and thanked the SEC for its assistance in the investigation.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over
the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
Assistant United States Attorney Jenna Dabbs is in charge of the prosecution.
Former CalPERS CEO and Former Placement Agent Indicted for Conspiracy and FraudRead the Press Release
SAN FRANCISCO - A federal grand jury in San Francisco indicted Alfred J. Villalobos, of Reno, Nevada, and Federico R. Buenrostro, Jr., aka Fred Buenrostro, of Sacramento, California, on charges of conspiracy to defraud the United States, engaging in a false scheme against the United States, and conspiracy to commit mail fraud and wire fraud, United States Attorney Melinda Haag announced. Mr. Buenrostro was also charged in the same indictment with making a false statement to the United States and obstruction of justice.
According to the indictment, Mr. Villalobos, age 69, and Mr. Buenrostro, age 64, conspired to create and transmit fraudulent documents in connection with a $3 billion investment by the California Public Employee Retirement System (“CalPERS”) into funds managed by Apollo Global Management (“Apollo”), a private equity firm based in New York City.
ARVCO Capital Research LLC (“ARVCO”), a financial services firm founded and managed by Mr. Villalobos, acted as a placement agent in helping Apollo to secure these investments by CalPERS. In each instance, Apollo required ARVCO to obtain an Investor Disclosure letter from CalPERS prior to paying ARVCO any fees for its efforts in securing CalPERS’ investments into Apollo-managed funds, citing, among other reasons, Apollo’s obligations under the securities laws.
After CalPERS’ legal and investment offices declined to sign a certain Investor Disclosure letter documenting ARVCO’s legal relationship with Apollo, Mr. Villalobos and Mr. Buenrostro conspired to create a series of fraudulent Investor Disclosure letters that were transmitted to Apollo. Apollo paid ARVCO a total of approximately $14 million dollars in fees after receiving the fraudulent letters.
ARVCO transmitted the last fraudulent Investor Disclosure letter in June 2008, a few weeks before Mr. Buenrostro retired from CalPERS. On July 1, 2008, Mr. Villalobos hired Mr. Buenrostro to work for ARVCO. When civil and later criminal investigations were opened into the operations of ARVCO and its role as a placement agent in connection with CalPERS’ investments in Apollo-managed funds, both defendants made false statements to, and concealed information from, the SEC, the USPIS, and the FBI, about the authenticity of the Investor Disclosure letters in order to defeat and obstruct the lawful functions of those agencies.
Mr. Villalobos and Mr. Buenrostro made their initial appearance in federal court in San Francisco on March 18, 2013, and are currently out on bond. Mr. Buenrostro’s next scheduled appearance is Monday, March 25, 2013, at 9:30 a.m., for identification of counsel and review of the terms of his bond. Mr. Villalobos’ next scheduled appearance is April 9, 2013, at 9:30 a.m., for review of the terms of his bond. Both defendants are scheduled to appear before in District Court on May 8, 2013, at 2:00 p.m., before Judge Breyer.
The maximum statutory penalty for conspiracy to commit mail fraud and wire fraud is 20 years imprisonment, $250,000 fine or twice the amount of gain or loss, whichever is greater, three years of supervised release, and a $100 special assessment. The maximum penalty for each count of conspiracy to defraud the United States, false scheme against the United States, false statement to the United States, and obstruction of justice is five years of imprisonment, $250,000 fine or twice the amount of gain or loss, whichever is greater, three years of supervised release, and a $100 special assessment. Restitution may also be ordered as to each of the five counts. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Timothy J. Lucey is the Assistant United States Attorney who is prosecuting the case with the assistance of Laurie Worthen and Maryam Beros. The prosecution is the result of a two-and-a half year investigation by the United States Postal Inspection Service and the Federal Bureau of Investigation, with substantial assistance from the Los Angeles Regional Office of the Securities and Exchange Commission as well as the United States Secret Service.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Mr. Villalobos and Mr. Buenrostro must be presumed innocent unless and until proven guilty.
(CalPERS Indictment )
Former Business Manager Pleads Guilty to Stealing More Than $730,000 from D.C. Law Firm-Defendant Issued Unauthorized Checks, Paid Himself Excessive Salary-Read the Press Release
WASHINGTON – William B. McNichols, 48, who handled accounting and other financial matters for a Washington, D.C. law firm, pled guilty today to one count of mail fraud in the embezzlement of more than $730,000, announced U.S. Attorney Ronald C. Machen Jr. and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
McNichols, of Colchester, Conn., pled guilty in the U.S. District Court for the District of Columbia. The Honorable Robert L. Wilkins scheduled sentencing for June 17, 2013. The charge carries a statutory maximum of 20 years in prison, a potential fine, and other penalties. Under federal sentencing guidelines, McNichols faces a likely range of 27 to 33 months in prison and a fine of $6,000 to $60,000. As part of his plea agreement, he has agreed to pay $732,863 in restitution to the law firm. He also is subject to a forfeiture judgment.
According to evidence presented to the Court by Assistant U.S. Attorney Sherri L. Schornstein, McNichols worked from May 2001 until March 2011 as the finance/business manager of Trister, Ross, Schadler and Gold, PLLP, a law firm. From approximately December 2007 until the summer of 2010, McNichols also performed accounting services for an affiliated company, the Ross Yoon Agency, which was based at the law firm.
Beginning in August 2004 and continuing until March 2011, McNichols embezzled about $631,736 from Trister Ross and about $101,127 from the Ross Yoon Agency. He obtained the money from Trister Ross by issuing excessive salary payments to himself and by issuing checks to pay personal credit card bills and other personal expenses. He obtained the money from the Ross Yoon Agency by issuing unauthorized checks to himself. He used the U.S. mail to send the unauthorized checks to his credit card companies and other companies.
In announcing the plea, U.S. Attorney Machen and Assistant Director in Charge Parlave praised those who investigated the case for the FBI’s Washington Field Office. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Donna Galindo, Assistant U.S. Attorney Anthony Saler, who assisted with forfeiture issues, and Assistant U.S. Attorney Sherri L. Schornstein, who is prosecuting the case.
13-101Felon with Active Criminal History Sentenced to 77 Months in Prison for Possessing GunRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pa., has been sentenced in federal court to 77 months imprisonment followed by three years supervised release on his conviction of violating federal firearms laws, United States Attorney David J. Hickton announced today.
Senior United States District Judge Donetta W. Ambrose imposed the sentence on Akeem Abdul Caldwell, 27. Caldwell was found guilty by a jury on December 5, 2012, of the crime of possession of a firearm by a convicted felon.
According to Assistant United States Attorney Charles A. Eberle, who prosecuted the case, the evidence presented at trial established that on Jan. 24, 2012, Caldwell, being a convicted felon, illegally possessed a Norinco, Model 1911A1, .45 caliber pistol. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year to possess a firearm.
According to information presented to the Court at sentencing, Caldwell's involvement in criminal activities began at age 14 and progressed to the robbery of a pizza delivery driver at age 17. In January 2005, at age 18, Caldwell was convicted in the Court of Common Pleas of Allegheny County of violating Pennsylvania's firearms law when he was found in possession of a sawed-off shotgun despite being a person prohibited from possessing a firearm. In early December 2005, at age 19, Caldwell was convicted in the Court of Common Pleas of Allegheny County of the crime of possession with the intent to deliver 73 stamp bags of heroin found in his pocket by the Pittsburgh Police. Also in early December 2005, Caldwell was convicted in federal court of possession of a firearm by a convicted felon, when on Sept. 14, 2005, the police found him in possession of a 9mm caliber handgun that was loaded with eight rounds of ammunition and one round in the gun's firing chamber. Caldwell was then convicted in federal court in 2008 for the crime of escape when, after being released from federal prison to a halfway house, he walked out of the halfway house and never returned.
U.S. Attorney Hickton commended the Pittsburgh Bureau of Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Caldwell. This case was prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
FEMA Contractor Admits Illegally Accepting Gratuity from Victim of Hurricane IreneRead the Press Release
NEWARK, N.J. – A Texas woman working as a contractor for the Federal Emergency Management Agency (“FEMA”) admitted today that she demanded and received an illegal gratuity from a New Jersey resident who had applied for FEMA assistance for property damaged by Hurricane Irene, U.S. Attorney Paul J. Fishman announced.
Tara Fannin-Mark, a/k/a Tara Mark, 44, of Houston, Texas, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an Information charging her with one count of receipt of an illegal gratuity by a public official.
According to documents filed in this case and statements made in court:
Fannin-Mark was employed as an inspector by a company that had entered into a contract with FEMA to inspect property belonging to individuals who sought FEMA assistance for damage caused by natural disasters. Fannin-Mark was assigned to conduct inspections of houses and other property of New Jersey residents who had applied for FEMA disaster assistance for damage caused by Hurricane Irene, which struck New Jersey in August 2011.
On Oct. 26, 2011, after a person listed in the information as a “Cooperating Witness” had initiated a request for FEMA disaster assistance, Fannin-Mark conducted an inspection at the Cooperating Witness’s residence in Essex County, N.J. On Oct. 31, 2011, having been informed that the Cooperating Witness had received a $2,313 disaster assistance check from FEMA, Fannin-Mark told the Cooperating Witness that Fannin-Mark needed $230 of the FEMA payment. Fannin-Mark received the $230 illegal gratuity from the Cooperating Witness in early November 2011.
The count to which Fannin-Mark pleaded guilty is punishable by a maximum potential penalty of two years in prison. Sentencing is scheduled for July 9, 2013.
U.S. Attorney Fishman credited the Department of Homeland Security, Office of Inspector General, under the direction of Special Agent in Charge Gregory Null, with the investigation leading to today’s guilty plea.The government is represented by Senior Litigation Counsel J Fortier Imbert of the U.S. Attorney’s Office Special Prosecutions Division Newark.
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Defense counsel: André Ligon Esq., Houston, TexasFannin-Mark, Tara Information
FBI Provides New Information Regarding the 1990 Isabella Stewart Gardner Museum Art HeistInformation Sought from Those in Philadelphia and Connecticut Who May Have Knowledge of the Art’s LocationRead the Press Release
Boston, MASS: The FBI, along with Boston’s Isabella Stewart Gardner Museum, and the United States Attorney’s Office for the District of Massachusetts, released new information about one of the largest property crimes in U.S. history, the art theft from the museum more than two decades ago. The FBI is appealing to the public for help in what is one of the FBI’s Top Ten Art Crimes.
The FBI believes it has determined where the stolen art was transported in the years after the theft and that it knows the identity of the thieves, Richard DesLauriers, Special Agent in Charge of the FBI’s Boston office, revealed for the first time in the 23 year investigation. “The FBI believes with a high degree of confidence in the years after the theft the art was transported to Connecticut and the Philadelphia region and some of the art was taken to Philadelphia where it was offered for sale by those responsible for the theft.” DesLauriers added, “With that same confidence we have identified the thieves who are members of a criminal organization with a base in the mid-Atlantic states and New England.” After the attempted sale, which took place approximately a decade ago, the FBI’s knowledge of the art’s whereabouts is limited.
Information is being sought from those who possess, or know the whereabouts of, the 13 stolen works of art, including rare paintings by Rembrandt and Vermeer, by publicizing new details about the case and continuing to highlight the $5 million reward for the return of the art. Although the FBI does not know where the art is currently located, the FBI is continuing its search, both in and beyond the Connecticut and Philadelphia areas. “With this announcement, we want to widen the ‘aperture of awareness’ of this crime, to the reach the American public and others around the world,” said DesLauriers.
Anthony Amore, the museum’s chief of security, noted that the reward is for “information that leads directly to the recovery of all of our items in good condition.” He further explained, “You don’t have to hand us the paintings to be eligible for the reward. We hope that through this media campaign people will see how earnest we are in our attempts to pay this reward and make our institution whole. We simply want to recover our paintings and move forward. Today marks 23 years since the robbery. It’s time for these paintings to come home.”
“The investigation into the Gardner Museum theft has been an active and aggressive effort, with law enforcement following leads and tracking down potential sources of information around the globe. Over the past three years, I have visited the museum several times, and each time I entered the Dutch Room and saw the empty frames, I was reminded of the enormous impact of this theft. I do remain optimistic that one day soon the paintings will be returned to their rightful place in the Fenway, as Mrs. Gardner intended,” said U.S. Attorney Carmen M. Ortiz. “As we have said in the past, the U.S. Attorney’s Office will consider the possibility of immunity from criminal prosecution for information that leads to the return of the paintings based on the set of facts and circumstances brought to our attention. Our primary goal is, and always has been, to have the paintings returned.”
To recover stolen items and prosecute art and cultural property crime, the FBI has a specialized Art Crime Team of 14 Special Agents supported by special trial attorneys. The team investigates theft, fraud, looting and trafficking across state and international lines with estimated losses running as high as $6 billion annually. The FBI also runs the National Stolen Art File, a computerized index of stolen art and cultural properties that is used as a reference by law enforcement agencies worldwide.
The FBI stressed that anyone with information about the artwork may contact the FBI at 1-800-CALL FBI (1-800-225-5324) or the museum directly or through a third party, said Special Agent Geoffrey Kelly, who is the lead investigator for the theft and a member of the art crime team, “In the past, people who realize they are in possession of stolen art have returned the art in a variety of ways, including through third parties, attorneys and anonymously leaving items in churches or at police stations.” Tips may also be submitted online at https://tips.fbi.gov.
The publicity campaign announced today includes a dedicated FBI website on the Gardner Museum theft, video postings on FBI social media sites, publicity on digital billboards in Philadelphia region, and a podcast. To view and listen to these items, link to the FBI’s new website about the theft: www.FBI.gov/gardner.
Eastlake Man Sentenced to 27 Months in Prison, Ordered to Pay $1 MillionRead the Press Release
An Eastlake man was sentenced to more than two years in prison and ordered to pay $1 million for his role in a fraud against St. Paul Croatian Federal Credit Union, said Steven M. Dettelbach.
Marko Nikoli, age 35, pleaded guilty last year to two counts of bank fraud and one count of money laundering.
U.S. District Judge Christopher A. Boyko sentenced Nikoli to 27 months in prison.
SPCFCU, located in Eastlake, was placed into conservatorship by the National Credit Union Administration on April 23, 2010. One week later, the NCUA liquidated SPFCFU and discontinued its operations after determining the credit union was insolvent. At that time, SPCFCU served about 5,400 members and was believed to have assets of approximated $239 million.
This case is being prosecuted by Assistant U.S. Attorneys Bridget M. Brennan and Justin Herdman following an investigation by the Cleveland office of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division.
Employee Sentenced to over 4 Years in Prison for Stealing from Non-Profit Organization and up to 72 of Its Disabled ClientsRead the Press Release
Stole Over $166,000 During Six Years
Greenbelt, Maryland - U.S. District Judge Alexander Williams Jr. sentenced Penny Parker Green, age 34, of Bowie, Maryland, today to 54 months in prison, followed by three years of supervised release, in connection with a scheme to steal over $166,000 from the ARC of Prince George’s County, which provides in-home support, daycare and employment services for people with intellectual and developmental disabilities and their families. Judge Williams ordered that Green pay restitution of $166,137, and forfeit two laptops, three desktop computers, a printer, XBOX, Wii, Playstation 3 and four HDTVs obtained as a result of the scheme.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge David Beach of the United States Secret Service – Washington Field Office; and Chief Mark A. Magaw of the Prince George's County Police Department.
Green was employed by the ARC of Prince George’s County and according to her plea agreement, from November 2006 to February 2012, Green stole $166,137 from ARC and up to 72 group home residents. Green used her ARC corporate credit card to: purchase airfare to Aruba, an island tour and a sunset sail; install custom closets in her home; and purchase computers, electronics, furniture and other merchandise and services. Green also directed other employees to withdraw cash from individual residents’ bank accounts for her personal use. Finally, Green stole petty cash that was intended for the benefit of individual residents to purchase items for herself. Green concealed the thefts by submitting paperwork that falsely described the expenditures, and then debited individual residents’ accounts for the purchases.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service and Prince George's County Police Department for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Christen A. Sproule, who prosecuted the case.
Downey Man Who Participated in Tax Fraud and Identity Theft Scheme Sentenced to 54 Months in Federal PrisonRead the Press Release
LOS ANGELES – A Downey man who cashed tax refund checks that were issued based on false tax returns and fraudulently obtained more than $1.3 million was sentenced today to 54 months in federal prison.
William Gomez-Corzo, 52, who also used the name “William Perez,” was sentenced this afternoon by United States District Judge Christina A. Snyder, who ordered the defendant to pay $1,320,566 in restitution to the IRS.
Gomez-Corzo pleaded guilty to one count of theft of public money for his role in a scheme that defrauded the IRS of millions of dollars by filing false income tax returns. As part of the scheme, Gomez-Corzo and his associates used the names and social security numbers of residents of Puerto Rico to file more than 1,000 false federal income tax returns seeking tax refunds based on the earned income credit. Gomez-Corzo and his co-conspirators used false out-of-state drivers licenses to open private mail boxes to receive the tax refund checks.
Gomez-Corzo also pleaded guilty to one count of aggravated identity theft for using an identity stolen from a dead man to obtain a United States passport. The 54-month sentence included a mandatory two-year term for the identity theft charge.
The investigation of Ortega was conducted by IRS - Criminal Investigation, the United States Secret Service and the United States Postal Inspection Service.
Release No. 13-035
Derry Woman Pleads Guilty in Heroin Distribution ConspiracyRead the Press Release
Johnstown, Pa. - A resident of Derry, Pa., pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Holly Thomas, 21, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, from the spring of 2011 to May 15, 2012, Thomas, along with co-defendants, conspired to distribute and possess with intent to distribute heroin.
Judge Gibson scheduled sentencing for Aug. 6, 2013, at 10:30 a.m. The law provides for a maximum total sentence of 20 years in prison and a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pennsylvania State Police and the Indiana Police Department conducted the investigation that led to the prosecution of Thomas. Other agencies participating in this investigation included the Pennsylvania Attorney General’s Office, the Cambria County Drug Task Force, the Cambria County Sheriff’s Department, the Cambria County District Attorney’s Office, the Indiana County Drug Task Force, and the Indiana County District Attorney’s Office.
Citizen of Turkey Sentenced to 59 Months in Federal Prison for Role in Atm “skimming” SchemeRead the Press Release
March 18, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that MEHMET AYDIN, 42, a citizen of Turkey last residing in Miller Place, N.Y., was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 59 months of imprisonment for his participation in an ATM skimming scheme across southern New England.
According to court documents and statements made in court, between February 2011 and July 2011, AYDIN, Ahmet Cilek, Gabriella Graham and others conspired to install “skimming” devices on automated teller machines (“ATMs”) at 11 banks and one credit union in Connecticut, Massachusetts and Rhode Island. The devices were able to capture the information encoded on the magnetic strips of bank cards used by ATM customers. The co-conspirators also placed devices on the ATMs that contained hidden pinhole cameras, which recorded the personal identification numbers that bank customers keyed into the ATMs to gain access to their accounts. The co-conspirators used the stolen information captured by the skimming devices and pinhole cameras to create counterfeit bank cards that allowed them to withdraw funds from the customers’ accounts.
As a result of this scheme, approximately 500 bank accounts were victimized and financial institutions have suffered losses of approximately $336,057.64. As part of his sentence, AYDIN was ordered to make full restitution, jointly and severally with his co-defendants.
AYDIN has been detained since his arrest on November 2, 2011. On April 12, 2012, he pleaded guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft.
Cilek and Graham also pleaded guilty. On June 14, 2012, Graham was sentenced to 45 months of imprisonment. Cilek awaits sentencing.
This investigation has been conducted by the Connecticut Financial Crimes Task Force, which includes members of the United States Secret Service, United States Postal Inspection Service, United States Department of State, Bureau of Diplomatic Security, Internal Revenue Service – Criminal Investigation, Connecticut State Police, and the Greenwich, Hartford, Stamford, Shelton and Stratford Police Departments. U.S. Attorney Fein specifically recognized the efforts of the Greenwich Police Department, Darien Police Department, U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security, and U.S. Secret Service in Boston and Providence for their assistance in the investigation and prosecution of this matter.
This case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
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(203) 821-3722 [email protected]Chief Scientist of Government Contractor Sentenced to One Year in Prison for Conspiring to Obtain Pirated Software from Chinese and Russian CybercriminalsRead the Press Release
WILMINGTON, Del. – Dr. Wronald Best, age 55, of Owensboro, Kentucky, was sentenced to one year in prison today for conspiracy to commit criminal copyright infringement, in which Best obtained over $2.3 million in stolen software from Chinese and Russian cybercriminals. Best also was sentenced to three years of supervised release, which will commence following his prison term.
Investigation of China-based Cybercriminal Leads to Identification of Dr. Wronald Best
According to statements made at today’s hearing and documents filed in court, the U.S. Department of Homeland Security, Homeland Security Investigations, identified a China-based website located at www.crack99.com that was advertising thousands of pirated software titles at a fraction of their retail value. The investigation revealed that this website was operated by Xiang Li, age 36, of Chengdu, China, who used the website to distribute pirated or cracked software to customers all over the world, including the United States. Software is “cracked” when its digital license files and access control features have been disabled or circumvented.
The HSI investigation revealed that between April 2008 to June 2011, Xiang Li engaged in over 500 transactions, in which he distributed approximately 550 different copyrighted software titles to at least 325 purchasers located in at least 28 states and over 60 foreign countries. These software products were owned by approximately 200 different manufacturers and were worth over $100 million. The software is used in a wide range of applications including defense, engineering, manufacturing, space exploration, aerospace simulation and design, mathematics, and explosive simulation. More than one-third of the unlawful purchases were made by individuals within the United States, including small business owners, government contractors, students, inventors, and engineers.
Between January 2010 and June 2011, undercover agents made a series of purchases of pirated software worth hundreds of thousands of dollars from Xiang Li’s CRACK99 website. The investigation culminated in a face-to-face meeting between Xiang Li and undercover agents on the Island of Saipan, in June 2011. Xiang Li had agreed to travel from China to Saipan to deliver pirated software, design packaging, and 20 gigabytes of proprietary data obtained from an internal computer server of a U.S. software company to undercover agents posing as U.S. businessmen. In addition, Xiang Li and the undercover agents were meeting to discuss a plan to distribute pirated software to small businesses in the United States. The undercover agents arrested Xiang Li on June 7, 2011, after he delivered the stolen intellectual property to them at a Saipan hotel. Xiang Li was transported to the District of Delaware, where he has remained in custody since June 2011.
On January 7, 2013, Xiang Li pled guilty to conspiracy to commit criminal copyright infringement and wire fraud in the United States District Court for the District of Delaware. Li is scheduled to be sentenced by United States District Judge Leonard P. Stark on May 3, 2013.
Dr. Wronald Best Conspires with International Cybercriminals to Commit IP Theft
During the investigation, agents learned that Dr. Wronald Best was one of CRACK99’s top customers in 2008 and 2009. As the investigation shifted focus to Best’s activities, agents learned that between September 2008 and May 2011, Best conspired with Xiang Li and other computer software crackers located in China and Russia to obtain and utilize unauthorized copies of industrial-grade software in the performance of government contracts for the military and law enforcement sectors. At the time, Best held the position of “Chief Scientist” at MPD, Inc., a Kentucky-based government contractor that services the U.S. and foreign militaries and law enforcement agencies.
The HSI investigation revealed that Best communicated electronically with approximately 35 different computer code crackers and obtained over 60 pirated software applications from Chinese and Russian sources. He paid over $6,000 to obtain pirated software worth over $2.3 million. Best told special agents that he used that cracked software to conduct computer simulations on components MPD, Inc. was designing for use in military helicopters, including the Black Hawk helicopter and the presidential helicopter fleet, commonly referred to as “Marine One.” Other projects on which Best used cracked software included designing Patriot missile components, police radars and breath analysis equipment widely used by American police departments.
The investigation also confirmed that Best was more than a customer of Chinese and Russian cybercriminals. Best also used his position as Chief Scientist” for a government contractor to obtain trial licenses to use various software applications, which he then provided to cybercriminals for cracking and future dissemination. He also provided these international software pirates with instructions on how to disable the security devices in certain software.
Following the sentencing hearing, United States Attorney Charles M. Oberly, III, stated: “Each year, American companies lose intellectual property valued in the billions of dollars to international cybercriminals engaged in rampant digital theft. Mr. Best’s offenses are aggravated by the fact that he used pirated software obtained from these thieves to design parts for our military and law enforcement personnel. The successful prosecution of this conspiracy ring proves that neither the international cybercriminal behind a computer in China nor his customers behind computers in America are beyond the reach of U.S. law enforcement.”
“Dr. Best betrayed our country and those who are sworn to protect it, by conspiring with international cyber thieves who believed they could remain anonymous in cyberspace. They were wrong,” said John P. Kelleghan, special agent in charge of Homeland Security Investigations in Philadelphia. “HSI and our law enforcement partners will continue to ensure that those who commit these crimes, no matter where they reside, are held accountable for their actions.”
This case is being investigated by the United States Department of Homeland Security, Homeland Security Investigations, and the Defense Criminal Investigative Service. This case is being prosecuted by Assistant United States Attorneys David L. Hall and Edward J. McAndrew.
Bucks County Man Pleads Guilty to Gun ChargesRead the Press Release
PHILADELPHIA - David Manilla, 51, of Worcester, PA, pleaded guilty today to possession of firearms by a convicted felon. Manilla was found to be in possession of multiple firearms and ammunition when police investigated the November 2010 shooting death of a hunter. Manilla, who fired the fatal shot, was prohibited from possessing any weapons because of his conviction on aggravated assault for the 1985 beating of another man.
U.S. District Court Judge Jan E. DuBois scheduled a sentencing hearing for June 27, 2013. Manilla faces a maximum statutory sentence of 10 years in prison, a fine of up to $250,000, three years of supervised release, and a $100 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and is being prosecuted by Assistant United States Attorney Joseph LaBar.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Birmingham Man Pleads Guilty to Tweeted Threat Against PresidentRead the Press Release
BIRMINGHAM – A Birmingham man pleaded guilty today in federal court to threatening the life of President Barack Obama on the social network Twitter, announced Acting U.S. Attorney John H. England III and U.S. Secret Service Special Agent in Charge Roy Sexton.
JARVIS BRITTON, 25, entered his plea before U.S. District Judge C. Lynwood Smith Jr. The judge in February ruled Britton competent to stand trial. Britton’s sentencing is scheduled June 20.
“Any threat made on the life of the president of the United States is a serious matter that will be prosecuted,” England said.
A federal grand jury indicted Britton in September for knowingly threatening to kill, kidnap or inflict bodily harm on the president by tweeting the message, “Let’s kill the president. F.E.A.R.,” on Sept. 14.
The Secret Service investigated the case, which Assistant U.S. Attorneys Joseph P. Montminy and Daniel J. Fortune are prosecuting.
Baltimore Immigration Judge Participates in Naturalization CeremonyRead the Press Release
BALTIMORE --Immigration Judge Elizabeth A. Kessler from the Executive Office for Immigration Review, Baltimore Immigration Court, delivered the keynote speech and administered the oath of allegiance to approximately 75 candidates during a naturalization ceremony at the George H. Fallon Federal Building in Baltimore, Md., on March 15, 2013. The Baltimore District Office of U.S. Citizenship and Immigration Services, Department of Homeland Security, hosted the ceremony.
Biographical Information
Attorney General Alberto Gonzales appointed Judge Kessler in January 2006. Judge Kessler received a bachelor of arts degree in 1987 from Columbia University, a master of arts degree in 1992 from Yale Graduate School, and a juris doctorate in 1992 from Yale Law School. From 2003 to 2006, she served as a deputy associate attorney general at the Department of Justice (DOJ). She previously served as a deputy general counsel for the U.S. Department of Energy. From 1997 to 1999, Judge Kessler served as general counsel, U.S. Senate Judiciary Committee, Subcommittee on Immigration in Washington, D.C. From 1995 to 1997, she served as counsel, U.S. Senate Judiciary Committee. From 1993 to 1994, Judge Kessler was an attorney, Civil Division, Appellate Staff, at DOJ and a Bristow Fellow, Office of the Solicitor General. From 1992 to 1993, she served as a law clerk with Judge Richard J. Cardamone, U.S. Court of Appeals for the 2nd Circuit. Judge Kessler is a member of the Maryland State and District of Columbia Bars.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Executive Office for Immigration ReviewAtlanta Man Admits His Role in Operating an Interstate Juvenile Sex Trafficking EnterpriseRead the Press Release
ALEXANDRIA, Va. – Joshua Jacquis Dumas, aka “Hitman,” 21, of Atlanta, Ga., pleaded guilty to running a commercial sex business that prostituted multiple juvenile girls in Herndon, Va., and other locations throughout Virginia, Maryland, North and South Carolina, Georgia, and Florida. The leader of the venture, Edwin Barcus, Jr., pleaded guilty one week ago to founding and leading a child exploitation enterprise.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Virginia Attorney General Kenneth Cuccinelli, II; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Lt. Colonel James A. Morris, Acting Fairfax County Chief of Police, made the announcement after the plea was accepted by United States District Judge Leonie M. Brinkema.
Dumas pleaded guilty to engaging in a child exploitation enterprise and faces a mandatory minimum of 20 years and a maximum of life in prison when he is sentenced on June 7, 2013.
“Joshua Dumas was a leader in a prostitution ring that profited from selling the bodies of young girls,” said U.S. Attorney MacBride. “He’s facing at least 20 years in prison for these vile crimes, and we hope other pimps are getting the message that sex trafficking children is not good for business.”
“Dumas recruited, intimidated, and exploited these young girls, selling these children into a life of sexual slavery, keeping them drugged to make them compliant, and making money off it,” said Attorney General Cuccinelli. “We will do everything in our power to stop sex traffickers like Dumas and Barcus from victimizing the most vulnerable among us, and we will put them away for as long as we can.”
“In today’s plea, Joshua Dumas admitted his role in a commercial sex business that preyed upon young girls and lured them into prostitution through deception and intimidation,” said Assistant Director in Charge Parlave. “Along with our law enforcement partners, the FBI is committed to apprehending these predators and ensuring they receive the justice they deserve.”
Dumas admitted that he played an important role in Barcus’s enterprise, serving as a manager and helping recruit juvenile girls to prostitute for the venture. He and others expressed a romantic interest in a particular girl, and then they tried to make prostituting seem glamorous. Sometimes, if a girl refused to work for their enterprise, members of the enterprise would steal her money. Members of the conspiracy carried a semi-automatic pistol for purposes of intimidation and protection.
Dumas admitted that he came to Virginia at the behest of Barcus because of the substantial profits in Virginia. Dumas had been prostituting two girls in Georgia, but he transported these girls via Greyhound bus so that they could prostitute in Herndon, Va. The girls were given narcotics to keep them compliant. Dumas admitted that the enterprise also used a juvenile boy to run errands and do counter-surveillance against the police.
Daily, the enterprise posted multiple advertisements on Backpage.com, and sometimes within minutes customers would call. Law enforcement recovered multiple “throwaway” cell phones that customers would call to arrange a “date” with the girls. Customers were then told which hotel to visit but not the room number, which allowed the members of the conspiracy the opportunity to observe the customer and ensure he was not an undercover detective. Once they believed the customer was not a policeman, they would call or text the customer with the room number.
Customers were charged at least $80 for 15 minutes of sex, $100 for 30 minutes, and $200 for 60 minutes. The girls were also instructed to charge more for “extras” and were encouraged to always try to get more money from the customers. The girls generally made at least $500 per day and sometimes made $3,000 per day. The girls were required to give all of their money to Barcus, Dumas, or other members of the enterprise. Some of the money was used to purchase narcotics, such as marijuana, “Molly,” which were given to the girls to induce them to continue prostituting.
This case was investigated by the FBI’s Washington Field Office and the Fairfax County Police Department, with assistance from the Northern Virginia Human Trafficking Task Force. Assistant United States Attorney Michael J. Frank and Virginia Assistant Attorney General and Special Assistant United States Attorney Marc J. Birnbaum are prosecuting the case on behalf of the United States.
Founded in 2004, the Northern Virginia Human Trafficking Task Force is a collaboration of federal, state, and local law enforcement agencies – along with nongovernmental organizations – dedicated to combating human trafficking and related crimes.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
15 March 2013
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary L. Hatton
www.usdoj.gov/usao/inn/ Fax: (219) 852-2770
South Bend, Indiana -- The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Marquis Broadway, 19, of South Bend, Indiana, pled guilty before District Judge Jon DeGuilio to the felony offenses of carjacking and brandishing a firearm during a crime of violence.Sentencing has been set for 6/27/13.These charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation and the South Bend Police Department.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ FAX (219) 852-2770
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Willie Flowers, 31, of Gary, Indiana, pled guilty before Magistrate Judge Paul Cherry to the felony offense of possession of a firearm by a convicted felon.Magistrate Cherry is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. These charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the East Chicago Police Department. This case is being prosecuted by Assistant United States Attorney Joshua Kolar.
Kenneth Myers, 21, of Monticello, Indiana, pled guilty before Senior District Judge Rudy Lozano to the felony offense of possession of a firearm by a convicted felon.Sentencing has been set for 6/6/13.These charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorney Dean Lanter.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ FAX (219) 852-2770
Fort Wayne, Indiana- The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS:
Michael Scott, 28, of Fort Wayne, Indiana, was sentenced by District Judge Theresa Springmann to 60 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of use of a firearm during a drug trafficking crime.This case was the result of an investigation by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department Gang Unit.This case was prosecuted by Assistant United States Attorney Lovita Morris King.
Jeremiah Thompson, 29, of Fort Wayne, Indiana, was sentenced by District Judge Theresa Springmann to 30 months imprisonment and 2 years of supervised release after pleading guilty to the felony offenses of maintaining a place for the purpose of distributing heroin and possession of a firearm by a convicted felon.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Charles Martin, 30, of Fort Wayne, Indiana, was sentenced by District Judge Theresa Springmann to 36 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.According to documents filed by the government in this case, Martin has a prior conviction for carrying a handgun without a license, receiving stolen auto parts and identity deception.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department.This case was prosecuted by Assistant United States Attorney Tina Nommay.
Rachel McMillan, 40, of Hamilton, Indiana, a defendant in the case US v Rivera et al., was sentenced by District Judge Theresa Springmann to 51 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of conspiracy to possess with the intent to distribute methamphetamine and heroin.According to
documents filed by the government in this case, Rivera was stopped for a traffic violation. The officer making the stop retrieved his drug dog which alerted to the presence of narcotic odor.The truck was subsequently impounded.A state search warrant was obtained to search the truck.Officers located drugs hidden in the truck’s front axle.McMillan then contacted law enforcement to retrieve the impounded truck by presenting what appeared to be a fraudulent power of attorney signed by Rivera.Officers found that McMillan had an expired driver’s license and, after observing her driving the truck, arrested her for the driving offense.McMillan admitted during an interview after her arrest to involvement with Rivera’s transporting a drug shipment to northern Indiana.This case was the result of an investigation by the Drug Enforcement Administration, the Indiana State Police, the Fort Wayne Police Department, the IMAGE Drug Task Force and the Steuben County Sheriff’s Department.This case was prosecuted by Assistant United States Attorney Anthony Geller.
United States to Accept Concurrent Jurisdiction over White Earth Reservation in MinnesotaRead the Press Release
The Department of Justice has granted a request by the White Earth Nation for the United States to assume concurrent criminal jurisdiction on the 1,300 square mile White Earth reservation in northern Minnesota, Deputy Attorney General James M. Cole announced today.
The decision was the first action of its kind under the landmark Tribal Law and Order Act of 2010 (TLOA), which granted the Justice Department discretion to accept concurrent federal jurisdiction to prosecute major crimes within areas of Indian country that are also subject to state criminal jurisdiction under Public Law 280. Public Law 280 is the 1953 law that mandated the transfer of federal law enforcement jurisdiction for certain tribes to six states, including Minnesota. The decision, relayed yesterday in a letter to the tribe signed by Deputy Attorney General Cole, will take effect on June 1, 2013. Tribal, state, and county prosecutors and law enforcement agencies will also continue to have criminal jurisdiction on the reservation.
“Our goal in granting this request is to strengthen public safety and security for the people of White Earth,” said Deputy Attorney General Cole. “We look forward to partnering with the tribe and our state and local counterparts to support White Earth in ensuring justice on the reservation.”
“The public safety challenges facing our tribal communities are serious and complex,” said U.S. Attorney for the District of Minnesota B. Todd Jones. “The United States Attorney’s Office will continue working closely and collaboratively with our tribal and local partners towards our common goal – improving public safety. It is our hope that with the additional jurisdiction, our Office will be able to support our tribal and county partners for the benefit of all communities.”
The Department of Justice already has jurisdiction to prosecute crimes such as drug trafficking and financial crimes wherever they occur in the United States – including on the White Earth reservation. The change announced today will expand this existing jurisdiction on the reservation to allow federal prosecution of major crimes such as murder, rape, felony assault and felony child abuse.
The decision followed careful consideration of the request and information provided by the White Earth Nation, as well as by the Justice Department’s Office of Tribal Justice, the Executive Office for United States Attorneys, the U.S. Attorney's Office for the District of Minnesota, the FBI, the U.S. District Court, state and local law enforcement partners and other sources.
Two Medicare Beneficiaries Found Guilty of Soliciting Kickbacks in Home Health Care CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Antonio J. Gomez, Postal Inspector In Charge of the U.S. Postal Inspection Service, and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), inform that a federal jury found Defendants Rene Suarez-Basanta, 67 years of age, and Marta Gonzalez, also 67 years of age, guilty of charges related to Medicare fraud.
The conviction of the defendants stemmed from the investigation of Safe Home Health Care, Inc., a home health agency in Miami that was offering and paying kickbacks to obtain beneficiaries to serve as patients for home health services, mostly physical therapy. Conspirators at the agency used the beneficiary information to bill Medicare. Defendants Suarez-Basanta and Gonzalez were convicted of conspiring to pay and receive kickbacks. Defendant Gonzalez was also convicted of two additional counts for soliciting and accepting kickbacks in exchange for serving as a patient of Safe Home Health Care, Inc. and having her parents serve as patients of Safe Home. In addition to be patients recruiters, Suarez-Basanta and Gonzalez are Medicare beneficiaries.
In total, nine defendants have been convicted of paying and receiving health care kickbacks in this investigation. Defendants Suarez-Basanta and Gonzalez are scheduled to be sentenced on May 25, 2013, at 10:00 a.m., before United States District Judge Ursula Ungaro, in Miami.
Mr. Ferrer commended the investigative efforts of the Federal Bureau of Investigation, U.S. Postal Inspection Service and the Office of the Inspector General for the Department of Health and Human Services. The case was prosecuted by Assistant U.S. Attorney Eric Morales.
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.
Two Martinsburg Residents Sentenced on Drug ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA - Two Martinsburg residents were sentenced on
March 14, 2013, in United States District Court in Martinsburg by Judge Gina M. Groh.United States Attorney William J. Ihlenfeld, II, announced that:
REBECCA FOWLER FAIRCLOTH, age 52, of Martinsburg, was sentenced to 57 months imprisonment to be followed by six years of supervised release. FAIRCLOTH entered a plea of guilty on October 11, 2012, to Distribution of Crack Cocaine on April 29, 2011. FAIRCLOTH was remanded to the custody of the United States Marshal pending designation to a Federal institution.
MELISSA JO NIECE, age 46, of Martinsburg, was sentenced to 18 months imprisonment to be followed by six years of supervised release. NIECE entered a plea of guilty on October 11, 2012, to Distribution of Crack Cocaine within 1,000 Feet of Winchester Avenue School on October 4, 2010. NIECE, who is free on bond, will self-report to the designated Federal institution on April 15, 2013.
This case was prosecuted by Assistant United States Attorney Stephen D. Warner and former Assistant United States Attorney Thomas O. Mucklow and investigated by the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, and the Berkeley County Sheriff’s Department.
Two California Men Charged in Boston with Computer Hacking in Connection with Gift Card Fraud SchemeRead the Press Release
Two California men have been charged in an indictment unsealed today in Boston with remotely hacking into merchants’ computerized cash registers in order to obtain fraudulent gift cards, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Carmen M. Ortiz for the District of Massachusetts and Resident Agent in Charge Holly Fraumeni of the U.S. Secret Service (USSS) Manchester, N.H. Office
Shahin Abdollahi, aka “Sean Holdt,” 46, of Lake Elsinore, Calif., and Jeffrey Thomas Wilkinson, 35, of Rialto, Calif., were both charged with one count of conspiracy to commit computer intrusion and wire fraud, and one count of wire fraud.
According to the indictment, Abdollahi owned Subway franchises in Southern California from 2005 to 2008, and later operated a California company called “POS Doctor,” which sold and installed point-of-sale (POS) computer systems to Subway restaurant franchises around the country. POS systems are a type of computerized checkout register that allows merchants to manage customer purchases made by credit, debit and gift cards.The indictment alleges that beginning in approximately 2011, Abdollahi and Wilkinson conspired to remotely hack into POS systems in Subway restaurant franchises around the country. According to the indictment, members of the conspiracy hacked into at least 13 Subway POS systems that Abdollahi sold through POS Doctor and fraudulently added at least $40,000 in value to Subway gift cards. Abdollahi and Wilkinson allegedly used the fraudulent gift cards to make purchases at Subway, and Wilkinson also allegedly sold fraudulent gift cards to others using eBay and Craigslist.
The case was investigated by the USSS and is being prosecuted by Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Adam J. Bookbinder of the District of Massachusetts.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two California Men Charged with Gift Card Fraud SchemeRead the Press Release
BOSTON – In an indictment unsealed late yesterday, two California men have been charged with remotely hacking into the computerized cash registers of a number of Subway restaurants in order to fraudulently obtain gift cards.
On March 6, Shahin Abdollahi (aka Sean Holdt), 46, of Lake Elsinore, Calif., and Jeffrey Thomas Wilkinson, 35, of Rialto, Calif., were both charged with one count of conspiracy to commit computer intrusion and wire fraud, and one count of wire fraud.
According to the indictment, Abdollahi owned Subway franchises in Southern California from 2005 to 2008, and later operated a California company called “POS Doctor,” which sold and installed point-of-sale (POS) computer systems to Subway restaurant franchises around the country. POS systems are a type of computerized checkout register that allows merchants to manage customer purchases made by credit, debit and gift cards.The indictment alleges that beginning in approximately 2011, Abdollahi and Wilkinson conspired to remotely hack into POS systems in Subway restaurant franchises around the country. According to the indictment, members of the conspiracy hacked into at least 13 Subway POS systems that Abdollahi sold through POS Doctor and fraudulently added at least $40,000 in value to Subway gift cards. Abdollahi and Wilkinson allegedly used the fraudulent gift cards to make purchases at Subway, and Wilkinson also allegedly sold fraudulent gift cards to others using eBay and Craigslist.
The statutory maximum penalty is 20 years in prison to be followed by up to three years of supervised release. Abdollahi is scheduled to have his initial appearance on March 27 at 3:00 p.m.
United States Attorney Carmen M. Ortiz; Acting Assistant Attorney General Mythili Raman; and Resident Agent in Charge Holly Fraumeni, of the United States Secret Service in Manchester, N.H., made the announcement today. The case is being prosecuted by Assistant United States Attorney Adam J. Bookbinder and Mona Sedky, a trial attorney with the Department of Justice’s Computer Crime & Intellectual Property Section.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two Brothers charged with defrauding the department of veterans affairsRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Raymond Testa, 60, of Rochester, N.Y., and Gerald Testa, 55, of Ontario, N.Y., were arrested and charged by criminal complaint with major fraud against the United States. The charge carries a maximum penalty of 10 years in prison, a $1,000,000 fine or both.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that according to the complaint, the defendants own and operate Testa Construction Inc. Starting in approximately 2008, the brothers started a second business and represented it to be a Service-Disabled Veteran Owned Small Business, when in fact it was not. In order to qualify as a Service-Disabled Veteran Owned Small Business, one must be a veteran with a service connected disability. The complaint further alleges that the defendants applied for and received government contracts from the Department of Veteran Affairs, which were set aside for the Service-Disabled Veteran Owned Small Business program, totaling approximately $13,000,000, funding that they would not otherwise be entitled to.
"These defendants stand accused of pretending to be disabled service veterans," said U.S. Attorney Hochul. "In doing so, the defendants deprived other small business owners of financial opportunities which the Service-Disabled Veteran Owned Small Business program is specifically designed to assist."
The complaint is the culmination of an investigation by Special Agents from the United States Department of Veterans Affairs - Office of Inspector General, under the direction of Special Agent In Charge Jeffrey G. Hughes, and Special Agents from the Federal Bureau of Investigation, under the direction of Special Agent in Charge Christopher M. Piehota.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Tonawanda man sentenced on child pornography chargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Andrew Ortman, 40, of Tonawanda, N.Y., who was convicted of distribution of child pornography, was sentenced to 10 years in prison and 20 years supervised release by U.S. District Court Judge Richard J. Arcara.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the case, stated that on October 22, 2011, law enforcement officers using an undercover computer downloaded eight video files from Ortman's computer that contained child pornography. Officers then obtained a search warrant for the defendant's home and seized his computer. A forensic examination determined that Ortman possessed, received and distributed in excess of 600 images and videos of child pornography.
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.
The sentencing is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero, Special Agent-In-Charge.
State Parolee Sentenced for Possession of Sawed-off Shotgun on Sault Tribe ReservationRead the Press Release
MARQUETTE, MICHIGAN – Shawn Marshall Brewer, 23, of St. Ignace, Michigan, was sentenced to 48 months in federal prison for being a felon in possession of a firearm, U.S. Attorney Patrick A. Miles, Jr. announced today. In addition to the prison term, U.S. District Judge Robert Holmes Bell ordered Brewer to serve three years of supervised release following his release from prison, and to pay a $100 special assessment. Brewer had pleaded guilty to the charge last November 8.Brewer, a convicted felon on parole after a 2009 conviction for unlawfully driving away a motor vehicle, was visited by his parole officer and law enforcement in August 2011. During this visit, Brewer was found in possession of a sawed-off 16 gauge shotgun, along with 38 knives, swords, a hatchet, a throwing star, and 16-gauge shotgun ammunition. The shotgun barrel had been cut down to just over 15 inches in length, and the shoulder stock had been replaced with a homemade pistol grip.
The Sault Sainte Marie Tribal Police, the Michigan State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Paul D. Lochner prosecuted the case.
END
Southern Illinois Residents Face Prison Terms for Methamphetamine ConspiracyRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that three Southern Illinois residents were recently sentenced as a result of their participation in conspiracies to manufacture methamphetamine.
On March 7, 2013, Bret A. Crunk, 42, of Anna, IL, was sentenced in United States District Court in Benton on a one-count indictment charging conspiracy to manufacture methamphetamine. Crunk was sentenced to 120 months in prison, 8 years of supervised release, and fined $600. The offense occurred between 2010, and March 12, 2012, in Union, Jackson, and Saline Counties. Evidence at the plea and sentencing hearings established that Crunk was involved with others in the manufacture of methamphetamine. During the conspiracy, Crunk obtained over 195 grams of pseudoephedrine for the purpose of manufacturing methamphetamine. One co-defendant has previously been sentenced for his involvement in the methamphetamine conspiracy and one co-defendant has pled guilty and is awaiting sentencing. This ongoing investigation is being conducted by the Union County Sheriff’s Office, Jackson County Sheriff’s Office, Murphysboro Police Department, and Drug Enforcement Administration. The Union County State’s Attorney’s Office also assisted during the investigation.
On March 7, 2013, Emma J. York, a/k/a Emma J. Melton, 36, of Annapolis, IL, was also sentenced in United States District Court in Benton on a one-count indictment charging conspiracy to manufacture methamphetamine. York was sentenced to 188 months in prison, 8 years of supervised release, and fined $600. This offense occurred between July, 2011, and August 12, 2012, in Crawford, Jasper, Randolph, and Jackson Counties. Evidence at the plea and sentencing hearings established that York was involved with others in the manufacture of methamphetamine. During the conspiracy, York participated in numerous methamphetamine “cooks” and also obtained over 98 grams of pseudoephedrine for the purpose of manufacturing methamphetamine. York received an enhanced sentence based on her classification as a Career Offender. This investigation was conducted by the Jackson County Sheriff’s Office, Crawford County Sheriff’s Office, Randolph 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.
Additionally, on March 7, 2013, Jason S. Thorne, 32, of Marion, IL, was sentenced in United States District Court in Benton on a one-count indictment charging conspiracy to manufacture methamphetamine. Thorne was sentenced to 156 months in prison, 3 years of supervised release, and fined $300. The district judge ordered the federal sentence to run consecutive to a state sentence that Thorne is currently serving. The offense occurred between 2009 and 2011 in Williamson County. Evidence at the plea and sentencing hearings established that Thorne was involved with others in the manufacture of methamphetamine. During the conspiracy, Thorne participated in methamphetamine “cooks” and also obtained over 45 grams of pseudoephedrine for the purpose of manufacturing methamphetamine. Thorne received an enhanced sentence based on his classification as a Career Offender. This investigation was conducted by the Jackson County Sheriff’s Office, Williamson County Sheriff’s Office, Marion Police Department, Murphysboro Police Department, and Drug Enforcement Administration.
All three cases are being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Rochester man pleads guilty in copyright infringement caseRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Eugene DeBerger, 60, of Rochester, N.Y., pleaded guilty to infringement of copyright for purposes of private financial gain before U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of five years in prison and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that between January 2007 and August 2010, DeBerger bought legal copies of copyright protected DVD movies and burned copies on his home computer. The defendant then sold them online for $3.99 a piece. During the time period, DeBerger sold over 7000 DVDs.
The plea is the culmination of an investigation on the part of the Special Agents from Federal Bureau of Investigation, under the direction of Christopher M. Piehota, Special Agent in Charge.
Sentencing is scheduled for May 29, 2013, at 3pm before Judge Geraci.Renz Held Without Bond in Federal CaseRead the Press Release
Syracuse, New York —United States Magistrate Judge Andrew T. Baxter ordered that David Renz be held without bond pending the resolution of charges that he received and possessed child pornography, announced United States Attorney Richard S. Hartunian. When Renz was arrested on these charges on January 9, 2013, he had no criminal history, and he was released on a number of conditions including electronic monitoring.
On March 14, 2013, just after 7:00 p.m., Renz tampered with the electronic monitoring system he was required to wear as part of his conditions of release. His tampering prevented any alerts to the United States Probation Office until approximately 11:30 p.m., when the Probation Office received an alert indirectly that there had been no motion by the device for a period of time.
At approximately 12:32 a.m., the United States Probation Office was notified that Renz had been arrested in connection with a kidnapping, murder, and rape in Clay, New York.
“My office is working with the Onondaga County District Attorney to make sure that the person who committed these horrific crimes is prosecuted to the fullest extent of the law,” said Hartunian.
Randolph Woman Sentenced for Mortgage FraudRead the Press Release
BOSTON – A Randolph woman was sentenced late yesterday for using a stolen identity to sign fraudulent mortgage loan documents.
Allison Gates, 50, was sentenced by U.S. District Judge George A. O’Toole to six months in prison, followed by two years of supervised release and ordered to pay $1.2 million in restitution to the mortgage lenders. In July 2012, Gates pleaded guilty to seven counts of wire fraud and four counts of identity fraud. She has been ordered to self-surrender to the Bureau of Prisons before April 15.Gates was solicited by co-defendant Peterson Cherimond to pose as the buyer for the purchase of four residential properties in Halifax, Brockton, and Worcester. For each of the four properties, Gates was paid approximately $3,000 to use a stolen identification to execute mortgage loan closing papers. Gates was paid a total of approximately $12,000.
In July 2012, Cherimond pleaded guilty to nine counts of wire fraud and three counts of money laundering, and pleaded guilty to four additional counts of wire fraud, seven counts of identity fraud and two counts of aggravated identity theft in October 2012. Sentencing is scheduled for April 11, 2013.
In February 2013, co-defendant Judy Bonas was also sentenced to six months in prison, followed by two years of supervised release, and ordered to pay $936,000 in restitution. In April 2012, Bonas pleaded guilty to six counts of wire fraud and three counts of identity fraud for playing a similar role in the fraud scheme. Bonas has been ordered to self-surrender to the Bureau of Prisons before April 22, 2013.
United States Attorney Carmen M. Ortiz, Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service, and William Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Victor A. Wild of Ortiz’s Economic Crimes Unit and Brian Pérez-Daple of Ortiz’s Civil Division.Owner of Leading San Diego Catering Service Sentenced for Role in Tax Evasion SchemeRead the Press Release
United States Attorney Laura E. Duffy announced that today Robert Peltier, one of the two principal owners and operators of Ranch Catering (dba "Ranch Events"), was ordered to pay $222,822 in restitution for committing tax evasion stemming from the operation of his business. United States District Judge Janis L. Sammartino also sentenced the defendant to serve six months home incarceration and six months home detention.
According to its website, Ranch Catering is one of San Diego’s "leading catering specialists, managing many exciting and unique venues and some of the largest Special Events in America." As detailed in charging documents, Peltier - while operating the catering business in 2003 - deposited proceeds from the business into accounts located at two different banks. When it came time to prepare his tax returns, Peltier provided his tax preparer with the deposits from only one of the two banks. As a result, he failed to declare $419,000 in catering income to the IRS. By concealing this income, Peltier caused Ranch Catering to evade paying $112,824 in taxes due and owing.
As revealed during his sentencing hearing, Robert Peltier was ordered to pay $221,792 in back taxes, penalties and interest on the taxes evaded. In addition, his son Jason Peltier (who is a co-owner of the business) entered into a separate civil settlement with the IRS requiring him to pay an additional $505,435 in back taxes, penalties and interest.
United States Attorney Duffy commented: “Given the difficult economic situation facing this country, it is imperative that we do not allow individuals to evade their duty to shoulder a fair share of the tax burden. Otherwise, honest citizens end up paying more than their rightful share."
“As hard-working citizens are sitting down to prepare their tax returns, it is imperative that IRS Criminal Investigation (CI) remain vigilant in our pursuit of those taxpayers who fail to report all of their income,” commented N. Dawn Mertz, Acting Special Agent in Charge for IRS CI Los Angeles Field Office. “Today’s sentencing of Robert Peltier should serve as a deterrent to those contemplating filing a false tax return.”
DEFENDANT Criminal Case No. 12cr3126-JLS Robert Peltier Jamul, California SUMMARY OF CHARGESCount 1: Title 26, United States Code, Section 7201 - Tax Evasion
INVESTIGATING AGENCYInternal Revenue Service - Criminal Investigation
Note / Opinion / EditorialRead the Press Release
NOTE:
The attached opinion / editorial, personally prepared and written by Central District of Illinois U.S. Attorney Jim Lewis and Federal Public Defender Jonathan E. Hawley, commemorates the 50th anniversary on March 18, 2013, of the U.S. Supreme Court’s decision in Gideon v. Wainright, that secured the right to counsel for indigent criminal defendants.
Please consider using the remarks as a ‘Letter to the Editor,’ as a separate ‘Op-Ed’ item, or for follow up in any manner your entity determines is appropriate.
For further discussion of this issue, U.S. Attorney Lewis is available by contacting 217-492-4450; Federal Public Defender Jonathan E. Hawley may be reached at 309-671-7891.
Thank you, Sharon J. Paul
Public Information Officer
U.S. Attorney’s Office
Central District of Illinois
217-492-4450OPINION / EDITORIAL
In March 1963, fifty years ago, the United States Supreme Court decided Gideon v. Wainwright, holding that every defendant who faces a serious criminal charge has the right to an attorney, and that this attorney will be at government expense if the defendant cannot afford one. This was a landmark decision for all of us who believe in fair trials, and we, as the United States Attorney and the Federal Public Defender for the Central District of Illinois, wish to acknowledge and celebrate this historic and memorable decision.
Before Gideon, people went to trial all too often without an attorney to stand with them. It wasn't fair. It wasn't just. It did not live up to our purposes and ideals.
Our Constitution's Preamble speaks truly, saying that we should establish justice. In the Gideon decision, the Supreme Court spoke truly, saying that "lawyers in criminal courts are necessities, not luxuries." In an earlier case, the Supreme Court spoke truly, saying that the prosecutor's goal “in a criminal prosecution is not that it shall win a case, but that justice shall be done." We believe that our justice system has to do its best to get it right the first time, because there is so much at stake for the individual and the community.
How are we doing, fifty years after Gideon? Our system is certainly much better, but we should not declare that the work is done. All too often, attorneys for indigent defendants do not have the funds and resources to handle the large caseloads. We need to fulfill our promise, and we can do so. We can establish model standards and expectations for public defense, we can look at our systems and see if there is fully effective representation, and we can strengthen our justice system whenever it does not fully serve its purpose: fair trials and just results.
Let us all celebrate this Supreme Court decision. And let us ensure that we meet its challenge, its promise and its purpose: equal justice under law.
James A. Lewis
U.S. Attorney, Central District of IllinoisJonathan E. Hawley
Federal Public Defender, Central District of Illinois