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13 March 2013
Manhattan U.S. Attorney Announces Appointment of Garden City Group as Claims Administrator for Forfeited Funds in U.S. V. Pokerstars That Will Be Returned to VictimsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States has retained the Garden City Group (“GCG”) to serve as Claims Administrator to oversee the process of compensating eligible victims of the fraud committed by Full Tilt Poker against United States players that was set forth in both the civil money laundering and forfeiture action United States v. PokerStars, et al., and the indictment United States v. Bitar, et. al.
Manhattan U.S. Attorney Preet Bharara said “The Garden City Group brings a track record of handling the administration of some of the country’s largest and most complicated settlements. With their selection, we take a significant step forward in the process of compensating victims of the Full Tilt Poker scheme.”
In July 2012, the United States entered into settlement agreements with Full Tilt Poker and PokerStars – two of the three online poker companies named as defendants in a civil forfeiture action brought by the United States alleging bank fraud, wire fraud, money laundering, and illegal gambling offenses. Under the terms of the settlement with Full Tilt Poker, the company agreed to forfeit virtually all of its assets to the United States (the “Forfeited Full Tilt Assets”) in order to fully resolve the action. The amended complaint filed in that action alleged that Full Tilt Poker defrauded its players by misrepresenting to the public that player funds held by Full Tilt Poker were safe, secure and available for withdrawal at any time. In reality, the company did not maintain funds sufficient to repay all of its players and instead, utilized player funds to finance more than $400 million in dividend payments to Full Tilt’s owners.
Under the terms of the settlement with PokerStars (the “PokerStars Settlement”), the company agreed, among other things, to forfeit $547 million to the United States and to assume Full Tilt Poker’s liability for the approximately $184 million owed by Full Tilt to foreign players. The PokerStars Settlement also provides that PokerStars will acquire the Forfeited Full Tilt Assets from the Government and also precludes PokerStars from offering online poker for real money in the United States unless and until it becomes permissible to do so under relevant law.
Utilizing funds forfeited from PokerStars in this action, the Department of Justice will establish a process by which eligible U.S. fraud victims will be able to seek compensation for their losses (“Petitions for Remission”). The Garden City Group has been selected as Claims Administrator by the United States to process Petition for Remission claims submitted by the U.S. Full Tilt fraud victims.
GCG is a class action settlement and bankruptcy administration company that has provided comprehensive legal administration services for nearly three decades. GCG has worked on numerous complex administrations, including the Gulf Coast Claims Facility; the Deepwater Horizon Economic and Property Damage Settlement; the Visa Check/MasterMoney Antitrust Litigation; the WorldCom Securities Litigation; and the IPO Securities Litigation.
Eleven defendants were charged criminally in connection with the original Internet poker Indictment, eight of whom have been arrested. The defendants who have been arrested are: Brent Beckley; Raymond Bitar; Nelson Burtnick; John Campos; Chad Elie; Bradley Franzen; Ryan Lang; and Ira Rubin. Seven of the arrested defendants previously pled guilty and four have been sentenced. Beckley was sentenced to 14 months in prison in July 2012, Rubin was sentenced to 36 months in prison in July 2012, Campos was sentenced to three months in prison in June 2012, and Elie was sentenced to five months in prison in October 2012. Burtnick, Franzen, and Lang await sentencing. The charges against Bitar remain pending as do the charges against Isai Scheinberg, Paul Tate, and Scott Tom, who remain at large. The charges and accusations against them are allegations and they are presumed innocent unless and until proven guilty.
U.S. Attorney Preet Bharara praised the Federal Bureau of Investigation for its outstanding leadership in the investigation, which he noted is ongoing.
The victim claims process will begin shortly. Information about the claims administration will be posted on the dedicated website GCG has established in connection with the victim compensation process, www.FullTiltPokerClaims.com. Information is also available from the toll-free hotline number at (866) 250-2640.
This matter is being handled by the Office’s Asset Forfeiture and Complex Frauds Unit. Assistant U.S. Attorneys Sharon Cohen Levin, Michael Lockard, Jason Cowley, and Andrew Goldstein are in charge of the civil money laundering and forfeiture action. Assistant U.S. Attorneys Arlo Devlin-Brown, Nicole Friedlander and Niketh Velamoor are in charge of the criminal case.
Lusby Man Sentenced after Pleading Guilty to Illegally Dumping Fill Material into the Chesapeake BayRead the Press Release
Greenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced David Ector, age 55, of Lusby, Maryland, today to two years probation after Ector pleaded guilty to discharging fill material into the Chesapeake Bay without a permit, in violation of the Clean Water Act. As a special condition of his sentence, Chief Judge Chasanow ordered that the defendant remove, at his own expense, all fill material discharged into the Chesapeake Bay.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge David G. McLeod, Jr., of the Environmental Protection Agency’s Criminal Investigation Division - Philadelphia Area Office.
“This country's environmental laws are aimed at keeping our inland waterways free from materials that do not belong there,” said David G. McLeod, Jr., Special Agent in Charge of EPA's criminal enforcement program in Maryland. “By ignoring restrictions on fill material in and around Chesapeake Bay, the defendant interfered with the critical habitat of an endangered species. Today's guilty plea and sentencing demonstrates that those who illegally alter or destroy these essential natural resources will be prosecuted.”
According to his plea agreement, Ector owned a cliff-front property in Calvert County. From May 28 through May 30, 2010, Ector caused large rocks (rip rap) to be dumped over the cliff-face. Ector did not obtain a permit to put the rocks into the Chesapeake Bay, as required by the Clean Water Act. The rip rap also scraped away soil on the cliff-face as it slid down the slope, interfering with the critical habitat of an endangered species.
United States Attorney Rod J. Rosenstein praised the EPA Criminal Investigation Division and the U.S. Fish and Wildlife Service, Office of Law Enforcement, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney David I. Salem, who prosecuted the case.
Kentucky Man Sentenced to Twenty Years Imprisonment for Norton Bank RobberyRead the Press Release
ABINGDON, VIRGINIA -- United States Attorney Timothy J. Heaphy announced today that Ronald Green, 49, of Isom, KY., was sentenced in the United States District Court for the Western District of Virginia in Abingdon to serve twenty years in prison for his involvement in the robbery of a bank in Norton, Virginia.
“Mr. Green put the lives of both bank employees and customers at risk with his brazen act of violence,” United States Attorney Timothy J. Heaphy said today. “Violent criminals like Mr. Green must be held accountable for their actions, as occurred today in federal court.”
Green was ordered to serve 240 months imprisonment and serve five years supervised release for his convictions for one count of bank robbery with a dangerous weapon and one count of brandishing a firearm in furtherance of a crime of violence.
According to evidence presented at hearings by Assistant United States Attorney Zachary T. Lee, in early December 2011 Green staked out numerous banks in Kentucky and Southwest Virginia in preparation for finding a bank to rob. On December 9, 2011, Green entered the Norton branch of New Peoples Bank and brandished a large caliber handgun at the bank tellers demanding money. After receiving the money, Green exited the bank and escaped the scene on a bicycle. Green was arrested on December 23, 2011, and found to be in possession of a large amount of money stolen from the bank.The investigation of this case was conducted by the Wise County Sheriff’s Office, Town of Wise Police Department, City of Norton Police Department, Virginia State Police, Kentucky State Police, Letcher County, Kentucky Sheriff’s Office, the Federal Bureau of Investigation, and the United States Marshals Service. Assistant United States Attorney Zachary T. Lee of the United States Attorney’s Office in Abingdon prosecuted the case.
Kelso Resident Sentenced to Prison for Gun and Drug CrimesRead the Press Release
A Kelso, Washington resident who was arrested as he left a motel room containing four firearms, while carrying four bags of heroin for distribution, was sentenced to seven years in prison, announced U.S. Attorney Jenny A. Durkan. ALLEN MARSTON, 35, has prior convictions for drug distribution, domestic violence assault and illegal weapons possession so he is barred from possessing firearms. U.S. District Judge Robert J. Bryan imposed three years of supervised release following the prison term.
According to records filed in the case, the Cowlitz Wahkiakum Narcotics Task Force (CWNTF) served a court-authorized search warrant on MARSTON’s motel room in Kelso on May 16, 2012. MARSTON was stopped by police as he left the motel. In his pockets, law enforcement found four bags containing more than 41 grams of heroin. A search of the motel room turned up four firearms including an AMT .380 caliber semi-automatic pistol, a Russian SKS 7.62 caliber semi-automatic rifle, a Kel Tec .223 caliber semi-automatic pistol, and a Ruger .40 caliber semi-automatic pistol. One of the firearms had been reported stolen. Law enforcement also found scales, packaging material, a grinder, spoons, prescription pills, hypodermic needles, and other drug paraphernalia in the motel room.
In their request for an 87-month sentence, prosecutors wrote to the court that a significant sentence, with a drug treatment component, is important to protect the public. “Marston’s drug problem is not an excuse for his continued, serious, and dangerous criminal conduct in this case, nor for his own spreading of the poison that is heroin in order to financially support his own habit. Marston’s possession of firearms at the same time he was trafficking in heroin … demonstrates a serious and very real potential for more trouble in the future,” prosecutors wrote in their sentencing memo.
The case was investigated by the Cowlitz Wahkiakum Narcotics Task Force and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and was prosecuted by Assistant United States Attorney Gregory A. Gruber.
Justice Department Settles with Ohio Hospital over HIV DiscriminationRead the Press Release
The Justice Department announced today that, as part of its Barrier-Free Health Care Initiative, it has reached a settlement with Glenbeigh Hospital of Rock Creek, Ohio, under the Americans with Disabilities Act (ADA). The settlement resolves allegations that Glenbeigh violated the ADA by denying admission to someone because of HIV. This is the fourth settlement that the Justice Department has reached in six weeks addressing HIV discrimination by a medical provider.
The Justice Department found that Glenbeigh unlawfully refused to admit someone with HIV into its alcohol treatment program because of the side effects of his HIV medication. Glenbeigh’s alcohol treatment program consists of helping patients through the physical aspects of recovery, as well as providing counseling and incorporating spiritual healing. The department determined that Glenbeigh cannot show that treating the complainant would have posed a direct threat to the health or safety of others.
“Ensuring access to medical care for people with HIV requires that those in the medical field make medical decisions that are not based on fears or stereotypes,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “The ADA does not tolerate HIV discrimination and neither will the Justice Department.”
“Our office is committed to vigorously enforcing the ADA, including for those with HIV,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio. “This settlement should send a clear message that those with HIV are entitled to the same services, including medical treatment, as everyone else.”
Under the settlement, Glenbeigh must pay $32,500 to the complainant and $5,000 in civil penalties. In addition, Glenbeigh must train its staff on the ADA and develop and implement an anti-discrimination policy.
In the past five weeks, the department announced similar agreements with Woodlawn Family Dentistry, the Castlewood Treatment Center, and the Fayetteville Pain Center to address HIV discrimination. All four settlements are part of the Department of Justice’s Barrier-Free Health Care Initiative, a partnership of the Civil Rights Division and U.S. Attorney’s offices across the nation, to target enforcement efforts on a critical area for individuals with disabilities. The initiative, launched on the 22nd anniversary of the ADA in July 2012, includes the participation of 40 U.S. Attorney’s offices. The division expects the initiative to address access to health care for people with HIV and those with hearing disabilities, as well as physical access to medical facilities. In 2012, the division and U.S. Attorneys offices reached two settlement agreements regarding access to medical care for people with HIV and four settlements regarding access to medical care for people with hearing disabilities. For more information on the Barrier Free Health Care Initiative visit www.ada.gov/usao-agreements.htm .
For more information on the ADA and HIV, visit www.ada.gov/aids . Those interested in finding out more about these settlements or the obligations of public accommodations under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov . ADA complaints may be filed by email to [email protected] .
Justice Department Settles with Ohio Hospital over HIV DiscriminationRead the Press Release
The Justice Department announced today that, as part of its Barrier-Free Health Care Initiative, it has reached a settlement with Glenbeigh Hospital of Rock Creek, Ohio, under the Americans with Disabilities Act (ADA). The settlement resolves allegations that Glenbeigh violated the ADA by denying admission to someone because of HIV. This is the fourth settlement that the Justice Department has reached in six weeks addressing HIV discrimination by a medical provider.
The Justice Department found that Glenbeigh unlawfully refused to admit someone with HIV into its alcohol treatment program because of the side effects of his HIV medication. Glenbeigh’s alcohol treatment program consists of helping patients through the physical aspects of recovery, as well as providing counseling and incorporating spiritual healing. The department determined that Glenbeigh cannot show that treating the complainant would have posed a direct threat to the health or safety of others.
“Ensuring access to medical care for people with HIV requires that those in the medical field make medical decisions that are not based on fears or stereotypes,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “The ADA does not tolerate HIV discrimination and neither will the Justice Department.”
“Our office is committed to vigorously enforcing the ADA, including for those with HIV,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio. “This settlement should send a clear message that those with HIV are entitled to the same services, including medical treatment, as everyone else.”
Under the settlement, Glenbeigh must pay $32,500 to the complainant and $5,000 in civil penalties. In addition, Glenbeigh must train its staff on the ADA and develop and implement an anti-discrimination policy.
In the past five weeks, the department announced similar agreements with Woodlawn Family Dentistry, the Castlewood Treatment Center, and the Fayetteville Pain Center to address HIV discrimination. All four settlements are part of the Department of Justice’s Barrier-Free Health Care Initiative, a partnership of the Civil Rights Division and U.S. Attorney’s offices across the nation, to target enforcement efforts on a critical area for individuals with disabilities. The initiative, launched on the 22nd anniversary of the ADA in July 2012, includes the participation of 40 U.S. Attorney’s offices. The division expects the initiative to address access to health care for people with HIV and those with hearing disabilities, as well as physical access to medical facilities. In 2012, the division and U.S. Attorneys offices reached two settlement agreements regarding access to medical care for people with HIV and four settlements regarding access to medical care for people with hearing disabilities. For more information on the Barrier Free Health Care Initiative visit www.ada.gov/usao-agreements.htm.
For more information on the ADA and HIV, visit www.ada.gov/aids. Those interested in finding out more about these settlements or the obligations of public accommodations under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed by email to [email protected].
Jury Convicts Defendant on Tax ChargesRead the Press Release
Sroufe Presented a Tax Return to the IRS Falsely Claiming a $1.7 Million Refund
ATLANTA - A federal jury in Atlanta convicted Donus R. Sroufe, 55, of Suwanee, Ga. of interfering with the administration of revenue laws and making a false claim for a $1.7 million tax refund.
“Millions of Americans file their tax returns honestly every year, while Mr. Sroufe tried to defraud the Government out of $1.7 million dollars,” said United States Attorney Sally Quillian Yates. “Fortunately, the IRS intercepted the return and, as a result, no taxpayer funds were paid out. Given the present climate with the federal budget, it is critically important to prevent fraudsters from stealing tax funds instead of paying them.”“The prosecution of individuals who intentionally try to impede the IRS by submitting frivolous and fraudulent documents is a vital element in maintaining public confidence in our tax system,” stated Veronica Hyman-Pillot, Special Agent in Charge of IRS Criminal Investigation. “Hopefully the verdict today will send a message to other individuals like Sroufe, that this conduct will not be tolerated.”
According to United States Attorney Yates, the charges and other information presented in court, in March 2009, Sroufe filed a United States Individual Income Tax Return (Form 1040) for 2008. He claimed a tax refund of $1.7 million. On that tax return, Sroufe falsely claimed that he received $2.5 million from a United States Treasury bond, and that he had paid over $2.6 million in federal taxes. In fact, the $2.5 million bond was a fake and he had not paid any income taxes for 2008.
In April 2009, the IRS notified Sroufe that his 2008 tax return was “frivolous” and warned him that he could face a penalty for filing a false return. Also, in June 2009, two IRS Special Agents met with Sroufe in person and notified him that the $2.5 million bond appeared to be a fictitious financial instrument.Sroufe ignored those warnings and in August, 2009, he mailed an identical copy of the 2008 tax return to the United States Department of the Treasury. The return included a copy of the fake $2.5 million bond, and demanded a $1.7 million tax refund.
Today, the jury found Sroufe guilty of interfering with the administration of the revenue laws and for making a false claim for a tax refund. The most serious of the charges (filing a false claim) carries a maximum sentence of 5 years in prison and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Sentencing is scheduled for May 30, 2013, at 10:00 a.m. before United States District Judge Charles A. Pannell, Jr.
This case is being investigated by Special Agents of the Internal Revenue Service Criminal Investigation.
Assistant United States Attorneys Shanya J. Dingle, Jeffrey W. Davis, and Steven D. Grimberg are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Hudson County, N.J., Man Charged with Production of Child PornographyRead the Press Release
NEWARK, N.J. – A federal grand jury today indicted a Hudson County, N.J., man for producing and possessing images and videos of child pornography, U.S. Attorney Paul Fishman announced.
Gregory John Schaffer, 35, of Bayonne, N.J., was charged by Indictment with two counts of production of child pornography and one count of possession of child pornography.
The charge of production of child pornography carries a mandatory minimum penalty of 15 years in prison and a $250,000 fine. The charge of possession of child pornography carries a maximum penalty of 10 years in prison and a $250,000 fine.
Schaffer was indicted on July 2, 2012, in the Eastern District of New York, with coercing and enticing a minor to travel for the purpose of engaging in illegal sexual activity, coercing and enticing a minor to engage in sexual activity. Those charges are pending.
U.S. Attorney Fishman credited special agents of the New York field office of U.S. Immigration and Customs Enforcement-Homeland Security Investigations, under the direction of Special Agent in Charge James T. Hayes, with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorney Elizabeth M. Harris of the U.S. Attorney’s Office General Crimes Unit in Newark.
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Schaffer Indictment
Home Health Care Company Techota, LLC, to Pay United States $150,000 to Resolve False Claims AllegationsRead the Press Release
Montgomery, Alabama - Techota, LLC has agreed to pay the United States $150,000 to resolve claims in a federal qui tam lawsuit that it violated the False Claims Act by making false claims for payment to Medicare for home health care services, announced George L. Beck, U.S. Attorney for the Middle District of Alabama. Techota, LLC, based in Nashville, Tennessee, provides home health care services in Alabama under the names CV Home Health of Bibb County and CV Home Health Services. The settlement resolves claims in the federal lawsuit that Techota, LLC, billed Medicare for home health services that were not eligible for reimbursement because the services were not medically reasonable and necessary or were not provided under a valid plan of care. Under the terms of a global settlement, Techota, LLC, will also enter into a Corporate Integrity Agreement with the Office of Inspector General of the Department of Health and Human Services (“HHS-OIG”).
“Our office is grateful to the law firm of Frohsin and Barger who represented Ms. McDonald and brought this injustice to our attention,” stated U.S. Attorney Beck. “Our country needs those with knowledge about the fraud and false claims to realize that if they bring these injustices to our attention, we will diligently work to cure the injustice.”
“False claims for medically unnecessary services drain both the Medicare program and the taxpayers’ pockets,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General for the Atlanta region. “The provider has agreed to Federal monitoring and reporting requirements to avoid problems in the future.”
This case was initially filed in the United States District Court for the Middle District of Alabama by Veronica McDonald, a former Techota employee, under the qui tam, or whistleblower provisions, of the False Claims Act. Pursuant to these provisions, a private citizen can bring suit on behalf of the United States and share in any recovery. Ms. McDonald will receive $22,500 as her share of the government’s recovery in this matter.
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused on efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover nearly $10.2 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14 billion.
This case was handled by Assistant United States Attorney James J. DuBois from the United States Attorney’s Office for the Middle District of Alabama and Natalie J. Priddy from the Civil Division of the United States Department of Justice, in conjunction with the United States Department of Health and Human Services, Office of Inspector General. The claims settled by this agreement are allegations only; there has been no determination of liability.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Hells Angels Member Sentenced for Illegal Firearm PossessionRead the Press Release
BOSTON – A Lynn man was sentenced to 21 years in prison yesterday for possessing a firearm and ammunition.
Eric Franco, 38, was sentenced by U.S. District Judge Denise Casper to 262 months in prison, followed by two years of supervised release. In September 2012, Franco was convicted after a jury trial of possessing a firearm and ammunition after receiving a felony conviction.On May 3, 2011, Franco, the sergeant-at-arms of the Lynn chapter of the Hells Angels, was found by Lynn Police to be in possession of a firearm and ammunition. The weapon was discovered when Lynn Police were called to the apartment Franco shared with his girlfriend and her child after receiving a report that Franco assaulted his girlfriend. Franco’s criminal record in Massachusetts includes three convictions for assault and battery by a dangerous weapon, as well as convictions for indecent assault and battery, failure to register as a sex offender, breaking and entering at night with intent to commit a felony, and conspiracy to violate the controlled substances act. Franco also was convicted in Arkansas for battery in the second degree in a case in which Franco and five other members of the Hells Angels assaulted and stabbed four members of another motorcycle gang.
United States Attorney Carmen M. Ortiz, Eugenio A. Marquez, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Boston Field Division, and Lynn Police Chief Kevin F. Coppinger made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Suzanne M. Sullivan and David G. Tobin of Ortiz’s Major Crimes Unit.
Former Pineville Official Pleads Guilty in Connection with Embezzlement SchemeRead the Press Release
Phillips-Ellis admits to stealing more than $80,000 from the Town of Pineville
BECKLEY, W.Va. – A former Pineville, West Virginia official pleaded guilty in connection with an embezzlement scheme that took more than $80,000 from the Town of Pineville, announced U.S. Attorney Booth Goodwin. Brandee Denise Phillips-Ellis, 30, of Pineville, Wyoming County, W.Va., pleaded guilty to theft concerning programs receiving federal funds. Phillips-Ellis admitted that between March 2009 and December 27, 2011, she stole a total of more than $80,000 from the Town of Pineville. Phillips-Ellis was employed as the city manager and recorder for the Town of Pineville at the time of the scheme.
U.S. Attorney Booth Goodwin said, “When people abuse a position of trust and steal from public coffers, they’re not just breaking the law---they’re ultimately hurting citizens who count on public services.” Goodwin continued, “People who attempt to steal from the public till will be caught and they will be punished.”
During January 1, 2010 and December 31, 2010, the Town of Pineville received benefits in excess of $10,000 under the Safe Routes to Schools Program, a federal aid program administered by the United States Department of Transportation’s Federal Highway Administration.
Phillips-Ellis admitted that she used twelve Town of Pineville checks totaling $14,649.83 to pay her husband’s personal credit card bills. The defendant further admitted that she wrote and cashed fraudulent reimbursement checks on Town of Pineville accounts, keeping $3,295.56 for herself. Additionally, Phillips-Ellis wrote eleven Town of Pineville payroll checks to herself totaling $20,427.50. Phillips-Ellis further admitted that she cashed a Town of Pineville check for $4,569.58 and used the proceeds in connection with the personal purchase of a car.
Phillips-Ellis also admitted that during her employment at SAFE Housing and Economic Development, Inc. (SHED) in McDowell County, West Virginia, she falsified documents in order to receive $36,380 in payments as a vendor that she was not entitled to receive. Phillips-Ellis was a full-time employee at SHED from about April 2006 through May 2009. Phillips-Ellis also worked part-time for the organization from May 2009 until December 2011. SHED is a non-profit organization that provides housing opportunities to low income first-time homebuyers.
In total, Phillips-Ellis admitted that she embezzled $80,489.96 from the Town of Pineville and SHED.
Phillips-Ellis faces up to 10 years in prison and a $250,000 fine when she is sentenced on June 25, 2013by United States District Judge Irene C. Berger.The investigation was conducted by the West Virginia Commission on Special Investigations. Assistant United States Attorney Eumi Choi is in charge of the prosecution.
This case is being prosecuted as part of the U.S. Attorney's Initiative to Combat Theft of Government Benefits launched in June 2008. The Initiative is designed to protect public funds and to prosecute those who steal benefits from public programs or agencies.
Former Orleans Parish Deputy, John P. Sens, Pleads Guilty to Conspiracy to Commit BriberyRead the Press Release
JOHN P. SENS, 52, a resident of New Orleans, Louisiana, pled guilty today before U.S. District Judge Kurt D. Engelhardt to conspiracy to commit bribery, announced U.S. Attorney Dana J. Boente.
According to the factual basis, SENS, the former Director of Purchasing at the Orleans Parish Sheriff’s Office (OPSO), began receiving things of value from two contractors, identified as Businessman A and Businessman B, in exchange for a rigged bidding system employed to steer OPSO work to the two contractors. In particular, from 2007 through 2011, Businessman A and Businessman B would submit bids for OPSO work in the names of their respective companies but, with the knowledge and assistance of, among others, SENS, would also submit phony or fake bids for these same projects in the names of other local companies, in an effort to give the appearance of a competitive bidding process. In many cases, the phony bids would intentionally be higher than the bids from Businessman A or Businessman B and, consequently, SENS would award the work to Businessman A or Businessman B.
According to court documents, in exchange for this rigged bidding process, SENS received various things of value from Businessman A and Businessman B. From 2007 through 2011, SENS received approximately $30,000 in cash from Businessman A, as well as the construction of a pool at a residence owned by SENS, at no cost to him. Similarly, during this same period of time, Businessman B paid for the purchase, framing, and matting of several “Blue Dog” paintings for SENS.
SENS faces a maximum penalty of five years imprisonment, three years supervised release, a $250,000 fine, and a $100 special assessment. Sentencing has been scheduled for June 12, 2013.
U.S. Attorney Boente, as well as the investigative and prosecution team, offer their thanks to the Metropolitan Crime Commission for providing valuable assistance in this case.
The case was investigated by special agents of the Federal Bureau of Investigation and is being prosecuted by Assistant U. S. Attorneys Matt Chester and Jon Maestri.
(Download Factual Basis )
Former Hamilton Township, N.J., Mayor Sentenced to 38 Months in Prison for Extortion, Bribery, Money LaunderingRead the Press Release
TRENTON, N.J. – The former mayor of Hamilton Township, N.J., was sentenced today to 38 months in prison in connection with $12,400 in bribes he solicited and accepted in exchange for his official influence in helping a health insurance broker maintain her contract with the township’s school district, U.S. Attorney Paul J. Fishman said.
John Bencivengo, 58, was previously found guilty following a five-day trial before U.S. District Judge Anne E. Thompson in Trenton federal court. Bencivengo was convicted of obstruction of commerce by extortion under color of official right, attempted obstruction of commerce by extortion under color of official right, two counts of violating the federal Travel Act, for causing the interstate travel and using facilities in interstate commerce in connection with the bribes that he accepted, and one count of money laundering. Judge Thompson imposed the sentence today in Trenton federal court.
“Mayor Bencivengo betrayed the people of Hamilton Township and all of the honest public servants in New Jersey who take their oaths and their responsibilities seriously,” U.S. Attorney Fishman said. “His conviction, and today’s sentence, serve as reminders that the public trust is not for sale.”
“John Bencivengo made the calculated decision to violate his sworn responsibilities in order to fulfill his personal needs,” said FBI Acting Special Agent in Charge David Velazquez. “His conviction and today's sentence underscore the impact of this crime on our community and state. The FBI views public corruption of any kind as a severe crime problem and will continue to dedicate our resources to investigate these crimes.”
According to documents filed in this case and evidence at trial:While serving as mayor between May 2011 and July 2011, Bencivengo accepted payments totaling $12,400 from a cooperating witness, Marliese Ljuba, the health insurance broker for the Hamilton Township School District. In exchange for the payments, Bencivengo agreed to use his official assistance, action, and influence to assist Ljuba retain the position as health insurance broker for the Hamilton Township School District. Bencivengo agreed to assist by (1) speaking to a member of the School District’s Board of Education (identified in the indictment as “School Board Member No. 1”) about retaining Ljuba as the school district’s health insurance broker instead of putting that position out for public bid; and (2) agreeing to let Ljuba choose the individual to replace another member of the school board if that member left the board to run for the New Jersey Assembly.
Bencivengo received the $12,400 in multiple payments. The first payment was a $5,000 check that Ljuba passed to Bencivengo through Warney. Bencivengo had informed Ljuba that he was having financial difficulties and that he needed her assistance. Bencivengo agreed to accept payment from Ljuba in exchange for Bencivengo’s assistance with School Board Member No. 1, who had advocated putting the School District’s health insurance broker position out for public bid instead of retaining Ljuba. On May 12, 2011, Ljuba traveled from another state to Hamilton Township to make that payment to Bencivengo. Bencivengo directed her to make the check payable to Warney’s wife to conceal the payment, and to put a notation on the check that it was to pay for a “Cherry Bedroom Set.” After receiving the check, Warney deposited the check and distributed the proceeds to Bencivengo in cash increments over several weeks. Warney previously pleaded guilty to money laundering and is awaiting sentencing. Bencivengo received the remaining $7,400 in two cash payments from Ljuba in July 2011, after she began cooperating with law enforcement: $2,400 from Ljuba at his home in Hamilton on July 20, 2011, and $5,000, from Ljuba in an Atlantic City hotel room on July 29, 2011.
In addition to the prison term, Judge Thompson sentenced Bencivengo to three years of supervised release, fined him $3,000 and ordered him to pay restitution of $12,400.U.S. Attorney Fishman credited special agents of the FBI’s Trenton Resident Agency, Newark Field Office, under the direction of Acting Special Agent in Charge David Velazquez, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Harvey Bartle and Dustin Chao of the U.S. Attorney’s Office Special Prosecutions Division.
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Defense counsel: Jerome A. Ballarotto Esq., Trenton
Former Employee of Eastern Kentucky Agriculture Program Pleads Guilty to Mail FraudRead the Press Release
LEXINGTON, KY - A former employee of an agriculture program in eastern Kentucky admitted in federal court she defrauded the program out of more than $200,000.
Debra Marshall, 49, of Clayhole, KY., pleaded guilty Monday to mail fraud.
Marshall worked as the District Administrative Secretary for the Breathitt County Conservation District (BCCD), a program that administers federal, state, and local grants and provides other assistance to county farmers. In this position she had day-to-day control over the operations and the finances of the organization.
According to her plea agreement, from 2005 until March 2010, Marshall took money from the District in a variety of ways, including issuing herself extra paychecks, embezzling grant money that was intended to go to local farmers, and using the District’s credit card for personal purchases. When the District’s operating account dwindled because of her scheme, Marshall cashed the BCCD’s certificates of deposit without authorization and placed that money into the District’s operating account.
Marshall admitted she covered up the scheme by falsifying accounting records and submitting financial reports that falsely inflated the District’s financial condition.
BCCD uses local, state, and federal funding to promote soil conservation, efficient utilization of natural resources and progressive farming practices.
Marshall was indicted in July 2012.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, Perrye K. Turner, Special Agent in Charge, Federal Bureau of Investigation, and Rodney Brewer, Commissioner of the Kentucky State Police jointly made the announcement today.
The investigation was conducted by the Federal Bureau of Investigation and the Kentucky State Police. The U.S. Attorney’s Office is represented by Assistant U.S. Attorneys Kenneth R. Taylor and Andrew T. Boone.
Marshall will appear for sentencing on June 10, 2013. Mail fraud carries a maximum of 20 years in prison. However, the Court will impose sentence after consideration of the U.S. Sentencing Guidelines and the applicable federal statutes.
Former Clarinda, Iowa Resident Sentenced to 48 Months for Possession of Child PornographyRead the Press Release
Council Bluffs, IA- On March 12, 2013, John R. Clark, age 49, formally a resident of Clarinda, Iowa, was sentenced to 48 months imprisonment for Possession of Child Pornography, to be served consecutively with a sentence Clark is currently serving in Florida for Lewd and Lascivious Act on a Child. The 48 month sentence was imposed by United States District Judge John Jarvey. Judge Jarvey also ordered Clark to serve a ten year term of supervised release following incarceration.
On November 1, 2012, the defendant pled guilty to a charge of Possession of Child Pornography. The investigation showed that Clark was receiving images of child pornography over the internet. At the time of his guilty plea, Clark admitted that on May 7, 2009, he had images on his home computer that depicted minors engaged in sexually explicit conduct.
The investigation was conducted by the Iowa Division of Criminal Investigation and the Department of Homeland Security and was prosecuted by the United States Attorney’s Office Southern District of Iowa.
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Florida Man Pleas Guilty to conspiring to kill federal judgeRead the Press Release
BROOKLYN, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Dejvid Mirkovic, 38, of Lake Worth, Florida, pleaded guilty before U.S. District Judge John Keenan, to a felony charge of conspiring to murder the U.S. District Judge (the “federal judge”) who presided over the boiler room fraud conviction of Mirkovic’s coconspirator, a close business associate. Mirkovic and his coconspirator agreed to pay $40,000 to an undercover police officer, who they thought was a hit-man, to kill the federal judge as well as the Assistant U.S. Attorney (the “federal prosecutor”) who successfully handled the coconspirator’s fraud prosecution. Mirkovic paid the undercover officer $22,000 in cash as a down payment for the murders of the federal judge and the federal prosecutor. Conspiring to murder a federal employee on account of the performance of official duties carries a maximum penalty of life in prison, a fine of $250,000, or both. Additionally, Mirkovic agreed to the forfeiture of over $200,000, a car and four firearms.
According to case filings, law enforcement authorities learned of the plot in August 2012, when a confidential informant reported that the coconspirator stated he wanted to torture and kill the judge and the federal prosecutor and asked the informant for assistance in arranging for a hit-man to carry out the murders. During the subsequent investigation, two undercover law enforcement officers, posing as hit-men, met with Mirkovic and the coconspirator numerous times at locations on Long Island, including at the Nassau County Correctional Center (“NCCC”), where the coconspirator was being held. At one of the first meetings, the coconspirator offered to pay one of the undercover officers $3,000 to assault an individual with whom the coconspirator had a financial dispute. Mirkovic then met with one of the undercover officers and paid him $1,500 as a down payment for the assault. After one of the undercover officers showed proof of the purported assault of John Doe – in fact, a staged photograph and an identification card for John Doe – Mirkovic paid the undercover officer the $1,500 balance.
Later that same day, Mirkovic met with the undercover officer, relayed the coconspirator’s instructions to murder the federal judge and federal prosecutor, and offered $40,000 for commission of the two murders. Mirkovic also gave the undercover officer a $12,000 down payment and paid an additional $10,000 the following week. Mirkovic promised payment of the final $18,000 upon confirmation of the murders. At the time of Mirkovic’s arrest at his home in Lake Worth, Florida, law enforcement officers recovered $18,000 in cash and a loaded 9mm semi-automatic handgun.
At today’s guilty plea proceeding, Mirkovic admitted under oath that he agreed to kill the federal judge and the federal prosecutor in retaliation for the performance of their duties. Mirkovic further admitted under oath that he traveled to the Eastern District of New York in September and October of 2012 and made payments for the murders.
The plea was the latest step in an investigation on the part of Special Agents of the Federal Bureau of Investigation, New York Office, under the direction of Assistant Director-in-Charge George Venizelos. The government’s case is being prosecuted by Assistant United States Attorneys Marshall L. Miller, Una A. Dean, and Brian Morris of the Eastern District of New York, under the supervision of U.S. Attorney William J. Hochul of the Western District of New York.Sentencing is scheduled for June 19, 2013, at 3 p.m. EST, in U.S. District Court, Brooklyn, in front of Judge Keenan.
Florida Man Pleads Guilty to Conspiring to Kill Federal JudgeRead the Press Release
BROOKLYN, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Dejvid Mirkovic, 38, of Lake Worth, Florida, pleaded guilty before U.S. District Judge John Keenan, to a felony charge of conspiring to murder the U.S. District Judge (the “federal judge”) who presided over the boiler room fraud conviction of Mirkovic’s coconspirator, a close business associate. Mirkovic and his coconspirator agreed to pay $40,000 to an undercover police officer, who they thought was a hit-man, to kill the federal judge as well as the Assistant U.S. Attorney (the “federal prosecutor”) who successfully handled the coconspirator’s fraud prosecution. Mirkovic paid the undercover officer $22,000 in cash as a down payment for the murders of the federal judge and the federal prosecutor. Conspiring to murder a federal employee on account of the performance of official duties carries a maximum penalty of life in prison, a fine of $250,000, or both. Additionally, Mirkovic agreed to the forfeiture of over $200,000, a car and four firearms.
According to case filings, law enforcement authorities learned of the plot in August 2012, when a confidential informant reported that the coconspirator stated he wanted to torture and kill the judge and the federal prosecutor and asked the informant for assistance in arranging for a hit-man to carry out the murders. During the subsequent investigation, two undercover law enforcement officers, posing as hit-men, met with Mirkovic and the coconspirator numerous times at locations on Long Island, including at the Nassau County Correctional Center (“NCCC”), where the coconspirator was being held. At one of the first meetings, the coconspirator offered to pay one of the undercover officers $3,000 to assault an individual with whom the coconspirator had a financial dispute. Mirkovic then met with one of the undercover officers and paid him $1,500 as a down payment for the assault. After one of the undercover officers showed proof of the purported assault of John Doe – in fact, a staged photograph and an identification card for John Doe – Mirkovic paid the undercover officer the $1,500 balance.
Later that same day, Mirkovic met with the undercover officer, relayed the coconspirator’s instructions to murder the federal judge and federal prosecutor, and offered $40,000 for commission of the two murders. Mirkovic also gave the undercover officer a $12,000 down payment and paid an additional $10,000 the following week. Mirkovic promised payment of the final $18,000 upon confirmation of the murders. At the time of Mirkovic’s arrest at his home in Lake Worth, Florida, law enforcement officers recovered $18,000 in cash and a loaded 9mm semi-automatic handgun.
At today’s guilty plea proceeding, Mirkovic admitted under oath that he agreed to kill the federal judge and the federal prosecutor in retaliation for the performance of their duties. Mirkovic further admitted under oath that he traveled to the Eastern District of New York in September and October of 2012 and made payments for the murders.
The plea was the latest step in an investigation on the part of Special Agents of the Federal Bureau of Investigation, New York Office, under the direction of Assistant Director-in-Charge George Venizelos. The government’s case is being prosecuted by Assistant United States Attorneys Marshall L. Miller, Una A. Dean, and Brian Morris of the Eastern District of New York, under the supervision of U.S. Attorney William J. Hochul of the Western District of New York.
Sentencing is scheduled for June 19, 2013, at 3 p.m. EST, in U.S. District Court, Brooklyn, in front of Judge Keenan.
Federal Jury Convicts Nebraska Man on Federal Drug Trafficking ChargesRead the Press Release
Defendant Guilty of Transporting PCP and Codeine on AmTrak TrainALBUQUERQUE – Shortly before noon today, a federal jury returned a guilty verdict against Rayvell Vann, 45, of Omaha, Neb., on drug trafficking charges after a two-day trial, announced U.S. Attorney Kenneth J. Gonzales and Special Agent in Charge Joseph M. Arabit of the DEA’s El Paso Field Division.
Vann was arrested in Albuquerque, N.M., on April 9, 2012, on drug trafficking charges in a criminal complaint. Vann subsequently was indicted and charged with (1) possession of more than 100 grams of phencyclidine (PCP) with intent to distribute, and (2) possession of codeine with intent to distribute.
According to the evidence at trial, on April 9, 2012, a DEA special agent, who was conducting an interdiction investigation at the AmTrak train station in Albuquerque, approached Vann, who was a passenger on a train and was traveling from Los Angeles, Calif., to Omaha. After identifying himself as a law enforcement officer, the agent requested and received Vann’s consent to talk to him. During the recorded conversation, Vann told the agent that he had traveled by plane to Los Angeles from Kansas City two weeks earlier and was returning from his travels.
Vann, who was traveling with one bag and a briefcase, agreed to let the agent search his bag which contained only a pink gift-wrapped box and a child’s dress despite Vann’s claim to have been in Los Angeles for two weeks. When the agent asked for permission to open the box, Vann said the box contained a birthday gift for his aunt but could not provide his aunt’s birth date. Shortly thereafter, while the conversation continued to be recorded, Vann admitted that the box contained illegal drugs, codeine cough syrup and “Ops” – short for Oxycotin, a prescription painkiller. The agent then arrested Vann and obtained a search warrant for the box.
When DEA agents opened the box, they quickly realized that it did not contain only codeine and painkillers because of the foam packaging inside the box and the pungent odor of ether that was released when they cut the foam. Recognizing the odor as PCP and finding 16 ounces of PCP in the box, the agents arranged for a bio-hazard expert to take possession of the bulk of the PCP after first taking a sample for testing.
After confirming that the PCP was appropriately handled, the agents interviewed Vann, who expressed surprise that the box contained PCP. Vann admitted purchasing PCP, codeine and Oxycotin while he was in Los Angeles, but claimed to have sent the PCP to Omaha by an expedited courier service. Vann told the agents he intended to sell the PCP, the codeine and Oxycotin in Omaha.
The jury deliberated about ninety minutes before returning a guilty verdict.
Vann has been in federal custody since his arrest on federal charges and remains detained pending his sentencing hearing, which has not yet been scheduled. Vann faces a mandatory minimum ten years in prison and a maximum of life in prison because he previously was convicted of a narcotics trafficking offense. Court records reflect that Vann was convicted of possession of a controlled substance in the State of Nebraska in 1989.
The case was investigated by the Interdiction Unit of the DEA’s Albuquerque office which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into, or through, New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles." Assistant U.S. Attorneys David M. Walsh and Norman Cairns are prosecuting the case for the government.
Fayette County Couple Sentenced to Federal Prison for Selling OxycodoneRead the Press Release
Defendants are 4th and 5th convictions this year in connection with an investigation in Fayette Co.
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin announced today that a Fayette County couple was sentenced to federal prison for selling oxycodone. Gary Stover, 34, of Kincaid, Fayette County, W.Va., was sentenced to three years and one month in federal prison. Stover previously pleaded guilty in November 2012 to distribution of oxycodone. Stover admitted that on March 21, 2012, he sold three 30-milligram oxycodone pills to an individual cooperating with law enforcement authorities. Stover further admitted that he is responsible for distributing a total of approximately 1000 30-milligram pills. Stover’s co-defendant, Jamie L. Foster, 26, was sentenced today to three months in federal prison followed by nine months of home confinement for aiding and abetting the distribution of oxycodone. Foster previously pleaded guilty in October 2012. Foster admitted that on April 16, 2012, she sold two 30-milligram oxycodone pills to an individual cooperating with law enforcement authorities. Foster and Stover shared a residence near Kincaid, Fayette County, at the time the illegal pill transactions occurred.
Stover and Foster are the latest defendants to be sentenced this year in connection with an ongoing drug investigation in Fayette County, W.Va. Earlier this month, Kenneth James Taylor, 32, Page, Fayette County, W.Va., was sentenced to five years in federal prison for distribution of oxycodone. In January, Gerald Wayne Hopkins, 52, of Fayetteville, W.Va., was sentenced to three years’ probation for cocaine distribution. Also in January, Michael Terry Coleman, 48, of Page, Fayette County, W.Va., was sentenced to two years in federal prison for selling oxycodone.
The West Virginia State Police Bureau of Criminal Investigation conducted the investigations. Assistant United States Attorney John File handled the prosecutions. The sentences were imposed by United States District Judge John T. Copenhaver, Jr.
The cases were prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Essex County, N.J., Woman Arrested for Fraud Scheme That Targeted Elderly IndividualsRead the Press Release
NEWARK, N.J. – An Essex County, N.J., woman was arrested this morning for engaging in a credit card fraud and identity theft scheme in which she targeted elderly women, fraudulently obtained their personal information, and used it to open new credit cards or access existing credit cards belonging to these individuals, U.S. Attorney Paul J. Fishman announced.
Terrell Brunson, 39, of Newark, N.J., is charged by Complaint with one count of access device fraud and one count of aggravated identity theft. She appeared today before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was detained.
According to the Complaint: From April 2012 through February 2013, Brunson engaged in an identity theft and credit card fraud scheme that specifically targeted elderly women. She searched through publically available directories for telephone numbers of individuals who she believed were elderly women based upon their names. One name that Brunson commonly sought out was “Ruth.” Brunson called these individuals and pretended to be someone she was not, such as a representative from a credit card company. She then solicited personal information from these women (Social Security numbers and dates of birth) and then contacted credit card companies and used the information to add herself as an authorized user to the victims’ accounts or to create new accounts.
For example, on July 3, 2012, a woman identified as Victim One received a telephone call from Brunson, purporting to be a representative of MasterCard. Brunson inquired about an alleged $400 transaction that she claimed Victim One had made at a Wal-Mart store. Victim One informed Brunson that the Wal-Mart transaction was fraudulent and provided her Social Security number, date of birth, and mother’s maiden name. Brunson then used Victim One's personal information to open two retail store credit card accounts and to access one of Victim One's current credit card accounts. Brunson then used these accounts to make thousands of dollars’ worth of purchases online and in person at various stores and restaurants in New Jersey.
On Dec. 14, 2007, Brunson was arrested was charged with access device fraud in federal court. While on pretrial release in connection with these charges, Brunson continued the scheme and fraudulently obtained additional identities and access to the credit card accounts of others. Brunson pleaded guilty to a two-count Information and on April 2, 2009, U.S. District Judge Anne E. Thompson sentenced her to 39 months in prison, followed by three years of supervised release. Brunson committed the present offenses while on supervised release.U.S. Attorney Fishman credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola, for the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations in the Complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
13-114Brunson Complaint
Essex County, N.J., Woman Arrested for Fraud Scheme That Targeted Elderly IndividualsRead the Press Release
NEWARK, N.J. – An Essex County, N.J., woman was arrested this morning for engaging in a credit card fraud and identity theft scheme in which she targeted elderly women, fraudulently obtained their personal information, and used it to open new credit cards or access existing credit cards belonging to these individuals, U.S. Attorney Paul J. Fishman announced.
Terrell Brunson, 39, of Newark, N.J., is charged by Complaint with one count of access device fraud and one count of aggravated identity theft. She appeared today before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was detained.
According to the Complaint: From April 2012 through February 2013, Brunson engaged in an identity theft and credit card fraud scheme that specifically targeted elderly women. She searched through publically available directories for telephone numbers of individuals who she believed were elderly women based upon their names. One name that Brunson commonly sought out was “Ruth.” Brunson called these individuals and pretended to be someone she was not, such as a representative from a credit card company. She then solicited personal information from these women (Social Security numbers and dates of birth) and then contacted credit card companies and used the information to add herself as an authorized user to the victims’ accounts or to create new accounts.
For example, on July 3, 2012, a woman identified as Victim One received a telephone call from Brunson, purporting to be a representative of MasterCard. Brunson inquired about an alleged $400 transaction that she claimed Victim One had made at a Wal-Mart store. Victim One informed Brunson that the Wal-Mart transaction was fraudulent and provided her Social Security number, date of birth, and mother’s maiden name. Brunson then used Victim One's personal information to open two retail store credit card accounts and to access one of Victim One's current credit card accounts. Brunson then used these accounts to make thousands of dollars’ worth of purchases online and in person at various stores and restaurants in New Jersey.
On Dec. 14, 2007, Brunson was arrested was charged with access device fraud in federal court. While on pretrial release in connection with these charges, Brunson continued the scheme and fraudulently obtained additional identities and access to the credit card accounts of others. Brunson pleaded guilty to a two-count Information and on April 2, 2009, U.S. District Judge Anne E. Thompson sentenced her to 39 months in prison, followed by three years of supervised release. Brunson committed the present offenses while on supervised release.U.S. Attorney Fishman credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola, for the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations in the Complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
13-114Brunson Complaint
Englewood Woman Pleads Guilty for Failure to Pay over $4.7 Million in Employment TaxesRead the Press Release
DENVER – Beth Ann Pettyjohn, age 60, of Englewood, Colorado, pled guilty Monday, (March 11, 2013) before U.S. District Court Judge William J. Martinez for failure to pay over employment tax, United States Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. Pettyjohn waived her right to be indicted by a federal grand jury on January 17, 2013 and was charged by Information. Pettyjohn is schedule to be sentenced by Judge Martinez on September 10, 2013 at 10:00 am.
According to the stipulated facts contained in the plea agreement, as well as the information, Pettyjohn is the co-owner and vice president of Overhead Door Company of Denver (OHD). From September 2003 to June of 2009, Beth Ann Pettyjohn stopped paying over the payroll taxes (income taxes withheld & FICA) OHD withheld from employee wages as well as the matching portion of FICA totaling almost 4.7 million dollars owed to the IRS. Pettyjohn admitted that she knew she had a duty to pay over the amounts withheld from employee wages, but she told an IRS agent she failed to do so because the IRS was not beating down her door. Pettyjohn managed the accounting department at OHD and determined which bills were paid, and then issued and signed the related checks. Pettyjohn has a bachelor's degree in business with a major in accounting, and she has an inactive CPA license issued by the State of Colorado. During the relevant years, the defendant employed both hourly and salaried employees.
During the period in question and for many prior years, Pettyjohn and her husband lived in a home valued at over $1 million dollars. Between 2005 through 2007, Pettyjohn received wages from OHD averaging approximately $133,000 per year. Also, after Mrs. Pettyjohn stopped paying over the payroll taxes at OHD, she purchased pieces of real estate. In August of 2007, Mr. and Mrs. Pettyjohn purchased a condominium in Gypsum, Colorado for $349,900 with a $100,000 down payment. In 2009, Pettyjohn paid $285,000 in cash to purchase her son's condominium in suburban Denver. The condo was resold to an unrelated party a few months later.
“An employer who withholds payroll taxes from her employees, but keeps those tax amounts for herself instead of paying them to the IRS, has committed a theft that hurts both her employees and the taxpayers of the United States,” said U.S. Attorney John Walsh. “In this case, the defendant is well educated, knows the tax laws, and knows that the tax laws applied to her company, like every other. She now faces the criminal consequences of her illegal acts.”
“Employers who commit Employment Tax Fraud by failing to remit employment taxes are not only defrauding the United States government, they are creating financial havoc for their employees,” said Stephen Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office.
Pettyjohn was charged with one count of failure to pay over tax. She faces not more than 5 years in federal prison, and a fine of up to $250,000.
This case was investigated by IRS-Criminal Investigation and prosecuted by Assistant U.S. Attorney Matt Kirsch.
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East Providence Man Pleads Guilty to Manufacturing, Possessing and Distributing Child PornographyRead the Press Release
PROVIDENCE, R.I. – David Crisostomi, 37, of East Providence, R.I., pleaded guilty in U.S. District Court in Providence on Tuesday to three counts of using a minor to manufacture child pornography, and one count each of possessing and distributing child pornography, announced United States Attorney Peter F. Neronha; Richard Deslauriers, Special Agent in Charge of the FBI’s Boston Field Office; and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Crisostomi admitted to the court that on at least three occasions he participated in the recording of child pornography with a prepubescent minor. He also admitted to the court that he downloaded and shared child pornography with others.
According to information presented to the court, on January 6, 2012, an undercover agent from the FBI’s Innocent Images Operations Unit observed that a user later identified as David Crisostomi was online and was sharing two folders containing child pornography. Three days later, an undercover agent observed that Crisostomi was online and was now sharing four folders containing child pornography.
On February 16, 2012, agents from the FBI and the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force executed a federal search warrant at Crisostomi’s residence and seized numerous images and videos depicting child pornography, computers and other electronic devices.
Crisostomi has been detained in federal custody since his arrest on February 16, 2012. He is scheduled to be sentenced on May 29, 2013.
At sentencing, Crisostomi faces a minimum statutory sentence of 15 years imprisonment and up to 30 years imprisonment for using a minor to produce child pornography; a minimum statutory sentence of 5 years imprisonment and up to 20 years imprisonment for distribution of child pornography; and up to 10 years imprisonment for possessing child pornography.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Contact: 401-709-5357
[email protected]Detroit Man Admits to Selling Prescription Painkillers in CharlestonRead the Press Release
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin today announced that a Detroit man pleaded guilty to distribution of oxymorphone, also known as “Opana.” Delbert Lapsley, 48, pleaded guilty in federal court in Charleston. Lapsley admitted to that on August 2, 2011, he illegally sold Opana at or near Charleston.
Lapsley faces up to 20 years in prison and a $1 million fine when he is sentenced on June 12, 2013 by United States District Judge John T. Copenhaver, Jr.
The Drug Enforcement Administration conducted the investigation. Assistant United States Attorney Monica Coleman is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Columbus Man Charged with Fraud Involving Federally Funded Tutoring ProgramRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – A federal grand jury has indicted Ashkir Ali, 45, of Columbus alleging that he defrauded the U.S. Department of Education’s Supplemental Education Services Program by billing the program for tutoring sessions that were never provided.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Thomas D. Utz, Jr., Special Agent in Charge for the North Central Region of the U.S. Department of Education, Office of Inspector General and Ohio Auditor of State Dave Yost announced the indictment which was unsealed today following Ali’s arrest yesterday at his place of business by an agent with the U.S. Department of Education.
“We must protect the integrity of all federally funded programs, especially those established to provide low-income families with educational services that help improve their lives,” U.S. Attorney Stewart said.
“By stealing from the SES Program, these ‘phantom tutors’ are stealing opportunities from the children who need them most,” Auditor Yost said. “Once again, I’m proud of the work we’ve done with our partners on the federal side to ensure that these education dollars go to children.”
Ali owned WAISS Network Technologies and in 2007 signed the first of four annual contracts with Columbus City Schools to provide tutoring for eligible students through the Supplemental Education Services program funded by the U.S. Department of Education. The contract required WAISS to submit student attendance forms with the names of the students, the hours of tutoring services they received, the dates the services were provided and the names of the tutors providing services. Student attendance forms had to be signed by tutors and the student’s parents.
Allegations surfaced of possible misconduct by providers of the Supplemental Education Services Program in 2011. A special audit of the Columbus City School District began in June 2011 after a request was made by Superintendent Gene Harris. The Ali case is the first prosecution to result from the Auditor of State’s special audit, which is ongoing.
The indictment alleges that Ali submitted more than $50,000 in fraudulent claims. The indictment alleges that Ali submitted forms with forged tutor and parent signatures and submitted written claims for payments which falsely represented the number of tutoring hours WAISS provided.
Ali is charged with two counts of making false statements, each punishable by up to five years in prison, and two counts of aggravated identity theft, each of which is punishable by two years to be served consecutive to any other sentence.
Ali appeared before U.S. Magistrate Judge Norah McCann King on March 12 and was released on his own recognizance. Future court appearances will be scheduled by U.S. District Judge Edmund A. Sargus Jr., who is presiding over the case.
U.S. Attorney Stewart commended the investigation by the U.S. Department of Education Office of Inspector General and State Auditor Yost’s Office, as well as Assistant U.S. Attorney Kenneth Affeldt who is representing the United States in this case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Chelsea Investment Adviser Sentenced to Seven Years for Defrauding Investors Out of MillionsRead the Press Release
BOSTON – A Chelsea investment advisor was sentenced yesterday for mail and wire fraud.
Gary J. Martel, 55, was sentenced by U.S. District Judge F. Dennis Saylor IV to 87 months in prison, followed by three years of supervised release. Martel was also ordered to pay restitution of $3.2 million and a forfeiture order of $3.2 million. In November 2012, Martel pleaded guilty to three counts of mail fraud and wire fraud.Martel held himself out as an investment adviser and offered to invest his clients’ funds in a variety of specific investments, including bonds, mortgage lending pools and stock. In fact, Martel did not invest the client funds as he had represented, but diverted most of the money for his own personal use and created phony account statements which he sent to investors to hide his ongoing fraud. Some of these clients invested their life savings with Martel and lost everything. Martel stole substantial amounts from close friends, trusting clients and even family members. In total, Martel received approximately $5.4 million from investors, paid back only about $2.1 million, and retained proceeds of approximately $3.3 million.
United States Attorney Carmen M. Ortiz; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The U.S. Attorney’s Office also acknowledges the valuable assistance it received from the U.S. Securities & Exchange Commission, Boston Regional Office; the Massachusetts Securities Division; and the Boston Police Department. The case was prosecuted by Assistant U.S. Attorney Sara Miron Bloom of Ortiz’s Economic Crimes Unit.
Central African Republic National Convicted for Resisting Deportation OrdersRead the Press Release
ALEXANDRIA, La.: United States Attorney Stephanie A. Finley announced today that Seyba Diallo, 46, of the Central African Republic, was found guilty on Tuesday afternoon by a federal jury on two counts of impeding or hampering his deportation from the United States. United States District Judge Dee D. Drell presided over the trial.
Diallo’s trial started Monday and ended Tuesday afternoon with the jury returning the guilty verdict after deliberating for 50 minutes. Based on witness testimony and documents admitted into evidence, it was established that on Nov. 11, 2011 and March 13, 2012, Diallo physically resisted U.S. Immigration Enforcement Agents (IEA) when they attempted to put him on a plane in Rapides Parish to return him to his country of origin. On both dates, IEAs brought him to the Alexandria International Airport and attempted to put him on a commercial flight where he began to yell and physically resist officers, which prevented him from being allowed on the flight due to airline and Transportation Security Administration policies. Diallo’s actions at the airport delayed his removal, but they also led to his deportation documents expiring, which further delayed his removal. Diallo has been in the United States for more than nine years.
“The defendant defied the law and placed additional burdens on our immigration system,” Finley stated. “I want to thank the prosecutor in the case and ICE officials who investigated this case.”
“ICE will continue to dedicate all its resources to prosecuting individuals who unlawfully hamper their removal,” said Scott L. Sutterfield, acting field office director for the Immigration and Customs Enforcement New Orleans Field Office. “This case illustrates our close cooperation with the U.S. Attorney’s Office for the successful prosecution of egregious immigration law violators who pose a threat to public safety and border security.”Diallo faces four years in prison, a $250,000 fine, and one year of supervised release for each count. Sentencing has been set for June 10, 2013.
The Immigration and Customs Enforcement - Enforcement and Removal Operations conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel prosecuted the case.
Boston Man Convicted in Armed RobberyRead the Press Release
BOSTON – A Boston man was convicted today for the armed robbery of a Dorchester Metro PCS retail store in 2011.
Lynch E. Arthur, 40, pleaded guilty before U.S. District Judge Denise J. Casper to armed robbery, using and carrying a firearm during a crime of violence and being a previously convicted felon in possession of firearm.
On the morning of Oct. 31, 2011, two men entered the Metro-PCS retail store on Washington Street in the Codman Square section of Dorchester. One man distracted the store clerk while the other walked around the counter and displayed a semi-automatic handgun. The two then forced the clerk into the back storage room and demanded cash after arming themselves with semi-automatic handguns. One man used duct tape to tie up the store clerk. The two men then removed cash from the cash register and fled the scene. A short time later, two men fitting the descriptions of the robbers were observed running down a nearby street, and were stopped and questioned. The officers observed articles of clothing, reportedly worn by the subjects, on the sidewalk from the direction that the men came from. The officers did a sweep and recovered the firearms used by the robbers, duct tape, and cash consistent with the amount stolen. The individuals were brought back to the store and positively identified by the store clerk.If convicted on these charges, Arthur faces the statutory maximum of life in prison on the charge of carrying a firearm during an armed robbery, 20 years on the armed robbery charge and 10 years on the felon in possession charge, followed by five years of supervised release. Sentencing is scheduled for June 6, 2013.
The co-defendant, Ronald E. Brown, is currently scheduled for trial later this month.
United States Attorney Carmen M. Ortiz; Commissioner Edward Davis of the Boston Police Department; and Eugenio A. Marquez, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz's Major Crimes Unit.
Body Recovered in Pennsylvania IdentifiedRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II, announced today that the body recovered in Wayne Township, Pennsylvania, on January 16, 2013, has been scientifically identified as that of Skylar Neese. Neese is the Star City, West Virginia, teenager who was reported missing by her parents in July of 2012. The testing of the body was conducted by the laboratory of the Federal Bureau of Investigation.
The investigation into the disappearance of Neese and her subsequent death is ongoing.
Berkeley Man Sentenced to Prison for Possessing A Destructive DeviceRead the Press Release
SAN FRANCISCO – Emoru Oboke Obbanya was sentenced March 12, 2013, to 27 months in prison for possessing a destructive device, announced United States Attorney Melinda Haag, Special Agent in Charge Joseph M. Riehl of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Special Agent in Charge David J. Johnson of the Federal Bureau of Investigation, San Francisco Field Office (FBI).
A federal grand jury indicted Obbanya in September 2011 on a charge of possessing a firearm not identified by a serial number, in violation of 26 U.S.C. § 5861(i). In March 2012 the grand jury returned a superseding indictment charging Obbanya with additional crimes. Count one of the superseding indictment charged Obbanya with possession of a firearm in the form of components from which a destructive device may be readily assembled, in violation of 26 U.S.C. § 5861(d). Count four of the superseding indictment carried forward the charge from the original indictment of possessing a firearm not identified by a serial number, in violation of 26 U.S.C. § 5861(i).
In July 2009, Berkeley Police Department served a search warrant at Obbanya’s residence and found in Obbanya’s bedroom a loaded firearm – specifically a flare gun that had been converted into an operable .38 caliber handgun. The firearm bore no serial number and had not been registered, and Obbanya had not applied for or received permission from ATF to make the gun. In addition to the altered firearm, the officers found .38 caliber ammunition, and numerous bomb-making materials in Obbanya’s bedroom
On September 17, 2012, Obbanya entered guilty pleas to counts one and four of the superseding indictment. Specifically, he admitted to possessing explosive components and a converted .38 caliber handgun.
The sentence was handed down by Chief District Court Judge Claudia Wilken. Drew Caputo is the Assistant U.S. Attorney who prosecuted the case. The prosecution is the result of a joint investigation by the ATF and the FBI with the assistance of Berkeley Police Department.
Anderson County Residents Sentenced for Drug TraffickingRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – Three Anderson County, Texas residents have been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Brandon Thomas Maciel, 26, of Palestine, Texas, Valerie Lynn Doyle, 24, of Itasca, Texas, and Jeremy Bice, 35, of Anderson County, Texas pleaded guilty to possession of pseudoephedrine with intent to manufacture methamphetamine in 2012 and were sentenced today by U.S. District Judge Leonard E. Davis. Maciel received a sentence of 87 months in federal prison, Doyle was sentenced to 70 months in federal prison and Bice was sentenced to 37 months in federal prison.
According to information presented in court, on Mar. 3, 2010, Bice purchased 2.4 grams of cold pills containing pseudoephedrine from a Wal-Mart in Palestine, Texas. Oct. 29, 2010, Maciel purchased 2.4 grams of cold pills containing pseudoephedrine at a Walgreens store in Palestine, Texas. Doyle purchased 2.88 grams of cold pills containing pseudoephedrine at the same Walgreens store. Maciel also admitted to making two other purchases of cold pills at a CVS store and a Wal-Mart in Palestine on the same day and on numerous other occasions. The cold pills were purchased to be used in the manufacture of methamphetamine. A federal indictment was returned on Apr. 11, 2012, charging Maciel, Doyle and Bice with federal drug crimes.
An additional co-defendant, Craig Lee Bice, pleaded guilty to the same charges and is awaiting sentencing.
This case was investigated by the Texas Department of Public Safety and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.
Albuquerque Man Indicted on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Chad F. Summers, 40, of Albuquerque, N.M., was arraigned this morning on an indictment charging him with child pornography and firearms offenses. The indictment against Summers was announced by U.S. Attorney Kenneth J. Gonzales and Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) in El Paso, Texas.
During this morning’s proceedings, Summers entered a not guilty plea to the five-count indictment which charges him with three counts of receiving visual depictions of minors engaged in sexually explicit conduct, one count of possession of a visual depiction of minors engaged in sexually explicit conduct, and one count of being a felon in possession of a firearm. According to the indictment, Summers received child pornography on April 2006 and Dec. 2012, and possessed child pornography in Dec. 2012. Summers also is charged with unlawfully possessing a firearm in Feb. 12, 2013. At the time, Summers was prohibited from possessing firearms and ammunitions because he previously had been convicted of a felony offense, specifically possession of child pornography, in an Oregon state court. The five offenses allegedly occurred in Bernalillo County.
Summers was arrested on Feb. 12, 2013 on a criminal complaint by HSI special agents based on an investigation initiated by the New Mexico State Police (NMSP) in Oct. 2013, that determined that an IP address subscribed to Summers was being used to receive child pornography. According to the criminal complaint, on Feb 12, 2013, law enforcement officers with HSI, NMSP and the Albuquerque Police Department (APD) executed a federal search warrant at Summers’ residence and seized computers and computer-related media which allegedly contained child pornography. Officers also seized a .9 mm pistol during the search of Summers’ residence.
If convicted, Summers faces a maximum penalty of not less than 15 years nor more than 40 years in prison on each of the three receipt of child pornography charges. If convicted on the possession of child pornography charge, Summers faces a maximum penalty of not less than 10 years nor more than 20 years in prison. The sentencing exposure on the child pornography charges is enhanced as a result of Summers’ prior child pornography conviction. The maximum penalty for a conviction on the firearms charge is ten years in prison.
The case was investigated by HSI, the NMSP and APD, and is being prosecuted by Assistant U.S. Attorney Charlyn E. Rees. It was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The Operation also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Charges in indictments are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
25 Years for Conroe Woman Convicted on Multiple Child Pornography ChargesRead the Press Release
HOUSTON – Debra Jean Eyerly, 54, formerly Debra Martin-Pryce, has been ordered to prison for 25 years following her convictions for production, transportation and possession of child pornography, United States Attorney Kenneth Magidson announced today. Eyerly pleaded guilty Oct. 25, 2012, to conspiracy to produce, production, transportation and possession of child pornography.
U.S. District Judge Keith P. Ellison, who accepted the guilty pleas, sentenced Eyerly this morning to 300 months on the conspiracy and each of the three convictions of production, as well as 120 months on the transportation and possession charges. All sentences will be served concurrently for a total sentence of 300 months. Following her release from prison, she will serve the rest of her life on supervised release.
The investigation began as a result of several downloads of child pornography over the Internet by FBI officers in Tulsa, Buffalo and Detroit which were traced to a computer used by Matthew Eyerly, whom agents later located in an apartment in Conroe. Also present were Debra Martin-Pryce and a minor child. Debra Martin-Pryce eventually married Matthew Eyerly.
When asked about the minor child in the apartment, Matthew Eyerly stated there would be pictures of the child on the computer. He admitted to digital and oral contact with the genitals of the child and having taken pictures of these acts, which took place at an earlier visit in July 2006 in Conroe. At that time, Debra Eyerly had left him alone with the child in a motel room.
Agents also interviewed Debra Eyerly, who stated she had recently moved to Texas from Pennsylvania to be with Matthew Eyerly. She had admitted to taking photos of the child and sending them to Matthew Eyerly at his request. She had taken the photos at her Pennsylvania residence and sent them to Eyerly over the Internet. She also admitted to leaving the minor child alone with Matthew Eyerly in a hotel room at his request at the earlier Conroe visit.
Both consented to searches of their computers. A forensic exam subsequently revealed images of the child on both computers as well as a camera belonging to Debra Eyerly. Additional images of child pornography downloaded from the Internet and not involving the minor child were also found on both computers.
Matthew Eyerly, 36, was also sentenced to 30 years in federal prison at a hearing last month. He had previously pleaded guilty to conspiracy to produce child pornography and possession of child pornography.
Debra Eyerly has been in custody since her Oct. 28, 2011, arrest where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, prosecuted by Assistant U.S. Attorney Robert Stabe and investigated by the FBI, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
19 Blytheville Residents Charged in Multiple Drug Trafficking and Weapons CasesRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas and Alcohol, Tobacco, Firearms and Explosives, Special Agent in Charge Marino F. Vidoli announced seven indictments which were unsealed today charging nineteen defendants in Blytheville, Arkansas, with multiple drug and gun charges. All told, the indictments charge the 19 defendants with 91 different counts. Approximately two kilograms of methamphetamine, multiple ounces of crack cocaine, more than 26 pounds of marijuana and 24 guns, including six stolen guns, were seized in the operation.
“As I said in October of 2011, our commitment to eradicating drug trafficking and violent crime has never been stronger,” stated United States Attorney Christopher R. Thyer. “In order to achieve the results we see today, it takes commitment from every law enforcement agency in the region. These large-scale investigations take time and teamwork. These indictments, arrests and seizures of weapons are proof that law enforcement in the Eastern District of Arkansas stands behind their commitment to the citizens of this region.”
“This investigation is a prime example of what happens when agencies work together to make their communities safer,” said Vidoli. “ATF’s commitment to reducing violent crime begins with our relationships with our law enforcement partners.”
The indictments are part of a larger operation, named H.I.T.S. (High Intensity Trafficking Suppression), initiated in response to firearms violence and the trafficking of firearms and narcotics in northeast Arkansas and southeast Missouri. Over the past two years the investigation resulted in over 240 undercover operations and numerous other law enforcement actions.
The main indictment charges eleven defendants in fifty-three separate counts stemming from a large-scale investigation into methamphetamine and narcotics trafficking in Blytheville. The indictment was handed down by a federal grand jury on March 6, 2013. The counts include conspiracy to possess with intent to distribute more than 500 grams of methamphetamine, aiding and abetting distribution of methamphetamine, use of a firearm in furtherance of a drug trafficking crime, felon in possession of a firearm, use of a telephone to facilitate a drug trafficking crime, and obstruction of justice. (See defendant/charge list attached.). If convicted of conspiracy to distribute more than 500 grams of methamphetamine each defendant will face a sentence of not less than 10 years to life imprisonment.
Six other indictments charge eight more defendants with counts including possession with intent to distribute methamphetamine, possession with intent to distribute crack cocaine, use of a firearm in furtherance of a drug trafficking crime, felon in possession of a firearm, and use of a telephone to facilitate a drug trafficking crime.
The ATF operation in Blytheville developed into multiple cases involving law enforcement at the federal, state and local levels. The conspiracy indictment is the largest case to date from that investigation.
Those arrested today will be arraigned in federal court in Little Rock before United States Magistrate Judge Jerome T. Kearney beginning at 10 a.m. on Thursday, March 14, 2013. Detention hearings will be held on Friday, March 15, 2013.
The investigation was conducted by ATF, in partnership with the 2nd Judicial Drug Task Force, which includes officers from the Blytheville Police Department, the Osceola Police Department and the Mississippi County Sheriff’s Office. The Arkansas State Police provided additional assistance with today’s operation. The seven indictments are being prosecuted by Assistant United States Attorneys Chris Givens, Alex Morgan, Kristin Bryant and Cameron McCree.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
"Bucket List Bandit" Pleads Guilty to Robbing 11 Banks in 10 StatesRead the Press Release
ERIE, Pa. - A former resident of Pensacola, Fla., who came to be known as the "Bucket List Bandit", pleaded guilty in federal court in Erie, Pa., to charges of bank robbery, United States Attorney David J. Hickton announced today.
Michael Eugene Brewster, 54, pleaded guilty to 11 counts before United States District Judge Sean J. McLaughlin. Brewster pled guilty to one count of bank robbery alleged in an indictment filed in the Western District of Pennsylvania for a bank robbery occurring on Sept. 10, 2012. Brewster also waived indictment and pled guilty to bank robbery charges filed in an Information in the Western District of Pennsylvania, alleging 10 other bank robberies occurring in: Arvada, Colo., on June 21, 2012; Flagstaff, Ariz., on June 27, 2012; Pocatello, Idaho, on July 6, 2012; Roy, Utah, on July 6, 2012; Winston-Salem, N.C., on July 20, 1012; Altamonte Springs, Fla., on July 27, 2012; Chattanooga, Tenn., on Aug. 3, 2012; Bloomington, Ill., on Aug. 17, 2012; Colombia, Mo., on Aug. 29, 2012; and O'Fallon, Mo., on Aug. 30, 2012.
In connection with the guilty plea, the court was advised that between June 21, 2012, and Sept. 10, 2012, Brewster robbed 11 banks across the nation. In the course of the bank robbery spree Brewster used a similar method of operation and entered each bank, without being disguised, wore similar clothes, carried a dark leather notebook, presented demand notes containing similar threatening language to each of the victim tellers, and left the scene driving a 2009 black SUV, which Brewster had stolen in Pensacola, Fla. In his last bank robbery in Erie, Penn., on Sept. 10, 2012, Brewster entered the Huntington National Bank, located at 2185 West 12th Street and presented a demand note, claiming that he had a gun and that the teller had one minute to comply. Brewster then claimed to the teller that he had cancer and did not care what happened. Brewster obtained bank proceeds and fled the area in a black SUV. Bank surveillance images and images from area surveillance cameras clearly depicted Brewster and the vehicle he used. Comparing the Erie Huntington Bank surveillance photographs with those from the 10 other bank robberies that had occurred throughout the United States confirmed that each robbery had been committed by the same person. On Sept. 12, 2012, the FBI received a tip that the bank robber depicted in the surveillance photographs was Brewster. A review of Brewster's Florida driver's license confirmed Brewster's identity as the bank robber. In addition, evidence disclosed that an arrest warrant had been issued for Brewster alleging that he had stolen a black Chevy Captiva SUV in Pensacola, Fla., on June 11, 2012. Once Brewster's identity had been established in the Erie robbery, the FBI and law enforcement partners in the jurisdictions of the other 10 bank robberies confirmed his identity in those cases as well.
According to the information provided to the court about the 10 other bank robberies, Brewster entered the Chase Bank at 5250 Wadsworth Boulevard in Arvada, Colo., on June 21, 2012, the Chase Bank at 1484 South Milton Road in Flagstaff, Ariz., on June 27, 2012; and the Ireland Bank at 486 Yellowstone Avenue in Pocatello, Idaho, on July 6, 2012, and obtained federally insured funds after presented a threatening note demanding money. In Roy, Utah, on July 6, 2012, Brewster entered the Wells Fargo Bank located at 5603 South 1900 West, and obtained money after presenting a threatening demand note claiming that he had only four months to live. In Winston- Salem, N.C., on July 20, 1012, Brewster entered a Bank of America at 1209 Silas Creek Parkway and presented a threatening demand note indicating that he had nothing to lose and threatening to come back after the teller if any silent alarm was activated. Brewster obtained no money from the Wells Fargo Bank. Then, at the Regions Bank at 360 West State Road 436 in Altamonte Springs, Fla., on July 27, 2012, the BB&T bank at 2120 Gunbarrel Road in Chattanooga, Tenn., on Aug. 3, 2012; the PNC bank at 2217 West Market Street in Bloomington, Ill., on Aug. 17, 2012; the Landmark Bank at 202 North Stadium Boulevard in Colombia, Mo., on Aug. 29, 2012; and the Lindell Bank at 4521 Highway K in O'Fallon, Mo., on Aug. 30, 2012, Brewster obtained money after presenting threatening demand notes, including a claim that he was armed with a gun.
Finally, according to information presented to the court, on Sept. 13, 2012, a police officer with the Roland Police Department in Roland, Okla., conducted a traffic stop of a black, 2009, Chevy Captiva vehicle and identified Brewster as the driver and sole occupant. A fake Utah license plate had been affixed to the vehicle. A computer check of Brewster's name revealed Brewster's outstanding arrest warrant in Pensacola, Fla., for allegedly stealing the Chevy Captiva vehicle. Brewster was then taken into custody and was found to be in possession of money from the Erie, Penn., Huntington Bank robbery. Among other items located in the Captiva vehicle was a handgun, money from the Huntington Bank robbery, the clothing worn by Brewster in the bank robberies as depicted in the surveillance photographs, and the leather notebook carried by Brewster into the banks he robbed. Brewster was then arrested on the Erie, Penn., arrest warrant and he was returned to the Western District of Pennsylvania to face federal prosecution.
Judge McLaughlin scheduled sentencing for Aug. 12, 2013, at 10:00 a.m. The law provides for a total sentence of 220 years in prison, a fine of $2,750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation in each of the jurisdictions, the Erie Bureau of Police, the Arvada Police Department, the Flagstaff Police Department, the Pocatello Police Department, the Roy City Police Department, the Winston-Salem Police Department, the Altamonte Springs Police Department, the Chattanooga Police Department, the Bloomington Police Department, the Columbia Police Department, the O'Fallon Police Department and the Roland Police Department conducted the investigation that led to the prosecution of Brewster.
12 March 2013
Yabucoa Resident Arrested for Child PornographyRead the Press Release
SAN JUAN, P.R. – Carlos López-Roldan, 30, was arrested in Caguas on child pornography charges following an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) special agents and officers assigned to the Puerto Rico Crimes Against Children Task Force (PRCACTF) from the Puerto Rico Police Department, announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez.
The defendant was arrested after an HSI investigation revealed that he allegedly used a video recording device to produce nude images of a 12-year-old girl identified as Jane Doe. The HSI investigation stemmed from a Puerto Rico Police Department (PRPD) referral on Friday afternoon alerting HSI that an individual, later identified as López-Roldan, had allegedly recorded a female minor with a hidden camera in the bathroom of the victim.
López-Roldan had his initial hearing before US Magistrate Judge Bruce McGiverin on Monday March 11, 2013. He was transferred to the Metropolitan Detention Center in Guaynabo, Puerto Rico while he awaits a hearing to determine bail, if any.
“With the recent spate of child exploitation cases, it is apparent that people are missing the message. If you exploit children by taking images of them engaging in sexually explicit conduct, you will be caught and prosecuted,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodriguez-Velez.
“This case demonstrates that there are serious consequences for producing illegal images of innocent children being sexually exploited and traumatized,” said Angel Melendez, acting special agent in charge of HSI Tampa. “ICE will continue to work with our state, local and other federal law enforcement partners to vigorously investigate child predators and ensure that they feel the full weight of the law.”
In response to the need for an island-wide approach to fighting the escalation of predatory crimes against children, HSI San Juan partnered with members of local, state and federal law enforcement, as well as local and state government officials and community leaders, to form PRCACTF in June 2011.
Through PRCACTF, local, state and federal law enforcement agencies work together with local and state government agencies to effectively pool their resources to jointly investigate all crimes against children in Puerto Rico. Through the task force, law enforcement officers are encouraged to share evidence, ideas, and investigative and forensic tools to ensure the most successful prosecutions possible. As such, PRCACTF allows law enforcement to speak with one unified voice in defense of the children of Puerto Rico.
This investigation was part of Operation Predator, a nationwide HSI initiative to protect children from sexual predators, including those who travel overseas for sex with minors, Internet child pornographers, criminal alien sex offenders and child sex traffickers. HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-347-2423 or by completing its online tip form. Both are staffed around the clock by investigators.
Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-843-5678.
HSI is a founding member and current chair of the Virtual Global Taskforce, an international alliance of law enforcement agencies and private industry sector partners working together to prevent and deter online child sexual abuse.
You may also visit us on Facebook, Twitter and YouTube, or access this news release on your mobile device.
Woman Admits to Selling Prescription Painkillers in HuntingtonRead the Press Release
HUNTINGTON, W.Va. – U.S. Attorney Booth Goodwin announced that a Huntington woman pleaded guilty on March 11 in federal court to distribution of oxycodone. Shena Rena Turner, 26, admitted that on November 19, 2012, she agreed to sell 100 30-milligram oxycodone tablets to a confidential informant working at the direction of the Drug Enforcement Administration (DEA). Turner further admitted that she received a total of 77 30-milligram oxycodone pills from an associate which she distributed to the informant in exchange for $2,800. Turner was arrested by DEA agents on February 4, 2013. Turner admitted that between the summer of 2012 until November 2012, she distributed a total of 300 30-milligram oxycodone pills.
Turner faces up to 20 years in prison and a $1 million fine when she is sentenced on June 10, 2013 by Chief United States District Judge Robert C. Chambers.
The DEA conducted the investigation. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Wichita Man Sentenced for Intrust Bank Branch RobberyRead the Press Release
WICHITA, KAN. – A Wichita man has been sentenced to 46 months in federal prison for robbing an Intrust Bank branch in a grocery store in west Wichita, U.S. Attorney Barry Grissom said today.
David D. Spenst, 46, pleaded guilty to one count of bank robbery. In his plea, he admitted that on Oct. 15, 2012, Spenst robbed the Intrust Bank branch located inside the Dillon’s grocery store at 10222 W. 21st in Wichita. He entered the bank about 5:42 p.m. and asked to speak to someone about a loan. He told an assistant manager he had a gun and a bomb and offered to show the manager the gun. The manager put money from the teller drawers into a manila envelope, which Spent took with him when he left the bank.
After the Wichita Police Department released video from bank surveillance cameras, investigators received information that Spenst was the robber. He was arrested Oct. 17 while he was staying at the Drury Hotel in Wichita. Investigators recovered cash from the robbery, a realistic looking air pistol, a metal aerosol can covered in black tape to resemble a bomb and a T-shirt bearing the words “Cheese Steak” that Spenst wore during the robbery.
Grissom commended the Wichita Police Department, the FB I and Assistant U.S. Attorney Lanny Welch for their work on the case.
Webster Man Sentenced for Enticing a MinorRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Joshua Stewart, 24, of Webster, N.Y., who was convicted of enticing a minor to perform sexual acts, was sentenced to 87 months in prison and 20 years supervised release by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney John J. Field, who handled the case, stated that on two separate occasions in 2010, the defendant used his cell phone to send texts to a 13 year old girl to entice her to have sex with him.
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 Special Agent in Charge James C. Spero, and the New York State Police, Troop E, under the direction of Major Mark Koss.
Wayzata Company Agrees to Pay More Than $400,000 for Violating Clean Water ActRead the Press Release
MINNEAPOLIS—A Wayzata-based company has entered into an agreement with the federal government to settle allegations that it violated the Clean Water Act by filling a wetland near the Elk River outside of Sauk Rapids without complying with the terms of a permit issued by the United States Army Corps of Engineers. Under the terms of the agreement, filed in the form of a consent decree on March 5, 2013, DMH Partners North, LLC, agreed to pay a $75,000 civil penalty to the U.S. and to purchase wetland credits valued at approximately $340,000.
In its complaint, the federal government alleged that in August 2008, the Army Corps of Engineers issued DMH a permit under Section 404 of the Clean Water Act in connection with DMH’s commercial development of a 34-acre parcel in Sauk Rapids. That parcel contained approximately 10.2 acres of wetlands protected by the Clean Water Act. The wetland was comprised of sedge meadow, shallow marsh, shrub carr, and hardwood forest plant community types. The wetland abuts a tributary that flows to the Mississippi River via the Elk River.
The permit allowed DMH to discharge fill material into 7.8 acres of the wetland provided certain conditions were met, including purchasing off-site wetland credits intended to mitigate harm to the wetland. In June 2009, the Corps inspected the site and found that DMH had filled wetland on the site, but abandoned it without completing the conditions of the permit, including the purchase of off-site wetland credits. It was later discovered that the site had been sold at a foreclosure auction.
The Corps issued DMH and its officers notices of permit violations in September 2009 and a Clean Water Act Compliance Order in February 2010, demanding DMH rectify the violations. DMH did not comply with either the permit or compliance order.
Assistant U.S. Attorney Ann M. Bildtsen represented the United States in this court action.Wayzata Company Agrees to Pay More Than $400,000 for Violating Clean Water ActRead the Press Release
MINNEAPOLIS—A Wayzata-based company has entered into an agreement with the federal government to settle allegations that it violated the Clean Water Act by filling a wetland near the Elk River outside of Sauk Rapids without complying with the terms of a permit issued by the United States Army Corps of Engineers. Under the terms of the agreement, filed in the form of a consent decree on March 5, 2013, DMH Partners North, LLC, agreed to pay a $75,000 civil penalty to the U.S. and to purchase wetland credits valued at approximately $340,000.
In its complaint, the federal government alleged that in August 2008, the Army Corps of Engineers issued DMH a permit under Section 404 of the Clean Water Act in connection with DMH’s commercial development of a 34-acre parcel in Sauk Rapids. That parcel contained approximately 10.2 acres of wetlands protected by the Clean Water Act. The wetland was comprised of sedge meadow, shallow marsh, shrub carr, and hardwood forest plant community types. The wetland abuts a tributary that flows to the Mississippi River via the Elk River.
The permit allowed DMH to discharge fill material into 7.8 acres of the wetland provided certain conditions were met, including purchasing off-site wetland credits intended to mitigate harm to the wetland. In June 2009, the Corps inspected the site and found that DMH had filled wetland on the site, but abandoned it without completing the conditions of the permit, including the purchase of off-site wetland credits. It was later discovered that the site had been sold at a foreclosure auction.
The Corps issued DMH and its officers notices of permit violations in September 2009 and a Clean Water Act Compliance Order in February 2010, demanding DMH rectify the violations. DMH did not comply with either the permit or compliance order.
Assistant U.S. Attorney Ann M. Bildtsen represented the United States in this court action.Veteran D.C. Defense Attorney Charles F. Daum Sentenced to Serve 63 Months in Prison for Obstruction of JusticeRead the Press Release
Veteran District of Columbia defense attorney Charles F. Daum was sentenced today to serve 63 months in prison on three counts of obstructing justice in a federal drug trafficking case, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Chief Cathy L. Lanier of the Washington, D.C., Metropolitan Police Department; and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Daum, 66, of Arnold, Md., was sentenced before Senior U.S. District Judge Gladys Kessler in the District of Columbia. In addition to Daum’s prison sentence for obstruction of justice, he was sentenced to a concurrent term of 60 months in prison on one count of conspiracy to obstruct justice and two counts of subornation of perjury. Daum was also sentenced to serve one year of supervised release.
“Daum went to extraordinary lengths to purposefully subvert the legal process in his client’s case,” said Acting Assistant Attorney General Raman. “He fabricated evidence and knowingly presented perjured testimony, betraying his profession and our system of justice. Today’s significant prison sentence is appropriate punishment for his crimes.”
“Through a scheme of his own design, Mr. Daum purposefully concocted false evidence and submitted it to the court,” said Assistant Director in Charge Parlave. “Today’s sentence demonstrates our diligence in protecting our judicial system from those individuals who attempt to violate its integrity.”
The charges resulted from Daum’s representation of Delante White, who was indicted in March 2008 by the U.S. Attorney’s Office for the District of Columbia on federal drug trafficking charges following the execution of a search warrant on Feb. 23, 2008, at the home of White’s grandmother. After a six-week bench trial, Judge Kessler found beyond a reasonable doubt that after entering his notice of appearance in the case, Daum devised a plan to obtain and produce false evidence designed to convince the jury that the drugs seized by the police on Feb. 23, 2008, did not belong to White. Daum enlisted the help of co-conspirators Daaiyah and Iman Pasha, whom Daum had hired as investigators, and others to help carry out his scheme. Following Daum’s directions, the co-conspirators obtained duplicates of several items that were seized as evidence during the execution of the search warrant, including a digital scale, a razor blade, plates, an Adidas shoe box and a pair of Gucci boots. Once those items were obtained, Daaiyah and Iman Pasha made arrangements to take staged photographs of White’s brother depicted with the items, while apparently “cutting” “rock cocaine” in order to make it appear as though the seized drugs actually belonged to the brother. Daum later submitted the staged photographs, as well as other fabricated items, as evidence during White’s criminal trial. Judge Kessler also found that Daum solicited and presented the perjured testimony of two witnesses, in order to further obstruct and impede the administration of justice.
Private investigators Daaiyah Pasha, 62, of Washington, D.C., and Iman Pasha, 33, of Springfield, Va., were also sentenced today by Judge Kessler. Daaiyah Pasha was sentenced to serve three months in prison and three years of supervised release. Iman Pasha was sentenced to serve three months probation.
The case was prosecuted by Trial Attorneys Darrin L. McCullough, Donnell Turner and Tritia Yuen of the Criminal Division’s Narcotic and Dangerous Drug Section. The case was investigated by the Washington, D.C., Metropolitan Police Department, the FBI and the U.S. Attorney’s Office for the District of Columbia.
Utica, New York - Two Utica area men arrested on charges of bank robbery.Read the Press Release
United States Attorney Richard S. Hartunian announced today the arrest of two Utica area men on charges of bank robbery.
ZACHARIAH EDWARDS, 21, of Frankfort, surrendered himself to authorities in Utica on March 8. He was transported to Syracuse where he was formally charged with robbery of $3,400 from the M&T Bank, 5170 West Taft Road, Syracuse, New York on March 4, 2013. On Monday, March 11, NICHOLAS FERRONE, 21, of Utica, surrendered himself to authorities in Syracuse. He was brought to federal court and formally charged with robbery of $4,409 from Chase Bank, 4425 East Genesee Street, Dewitt, NY on January 28, 2013.
According to the criminal complaints filed in these cases, EDWARDS and FERRONE are suspected of acting together and robbing the following banks:
Chase Bank, 6004 Court Street, Syracuse, New York on January 14, 2013; Berkshire Bank, 2080 Western Avenue, Guilderland, New York on January 23, 2013; Chase Bank, 4425 East Genesee Street, Dewitt, New York on January 28, 2013; Trustco Bank, 2050 Western Avenue, Guilderland, New York on February 13, 2013; Bank of America, 638 Memorial Drive, Chicopee, Massachusetts on February 25, 2013; and
M&T Bank, 5170 West Taft Road, Syracuse, New York on March 4, 2013.In addition, the papers filed with the court link FERRONE to a robbery of the Alliance Bank at 142 Genesee Street, Oneida, New York on January 3, 2013.
Both defendants appeared before United States Magistrate Judge David E. Peebles and were ordered held without bail. Detention hearings for both are scheduled for March 13, 2013 at 11:00 am in Syracuse. Bank robbery carries a maximum penalty of twenty years imprisonment and a fine of $250,000 for each count.
The investigation has been a multi-agency effort, including participation by the Dewitt Police Department, the New York State Police, the Guilderland Police Department, the Oneida Police Department, the Onondaga County Sheriff’s Office, Chicopee, Massachusetts Police Department, Schenectady Police Department and the Federal Bureau of Investigation. The case is being prosecuted by AUSA Edward R. Broton.
The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty.
Two District Men Plead Guilty to Robbery Charges in Hold-Up at Northwest Washington Apartment Building-Defendants Targeted Victims in the Lobby-Read the Press Release
WASHINGTON – Michael Richardson, 22, and Kendall Lowe, 21, both of Washington, D.C., have pled guilty to charges stemming from a robbery last fall at an apartment building in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced today.
The defendants pled guilty on March 8, 2013 in the Superior Court of the District of Columbia. Richardson pled guilty to robbery and carrying a pistol without a license. Lowe pled guilty to robbery. The Honorable Heidi M. Pasichow scheduled sentencing for May 17, 2013.
According to the government’s evidence, Richardson and Lowe targeted the victims, two men, at about 10:40 p.m. on Oct. 5, 2012 after seeing them in the lobby of an apartment building in the 200 block of Hamilton Street NW. Richardson and Lowe went into the lobby. Then, with Lowe acting as a look-out, Richardson pointed a gun at one of the victims and demanded money, getting $47. Richardson then turned and pointed the gun at the second victim and demanded money. When that man said he had no money, Richardson and Lowe fled the building.
A witness spotted the defendants the following day and called police.
In announcing the pleas, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Debra McPherson and Assistant U.S. Attorney Natalia Medina, who investigated and prosecuted the case.
13-093Three Buffalo Men Arrested; Accused of Possessing and Distributing Cocaine and Crack CocaineRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Mashi Phillips, 38, Isaiah Washington, 27, and Rayshawn Minter, 34, all of Buffalo, are charged with possession with intent to distribute and distribution of cocaine and crack cocaine. Phillips is also charged with conspiracy to distribute cocaine. The charges carry a maximum penalty of 20 years in prison, a $1,000,000 fine or both.
Assistant U.S. Attorney Frank T. Pimintel, who is handling the case, stated that according to the complaints, the defendants distributed quantities of cocaine in parts of the City of Buffalo including French Street and Box and Glenwood Avenues. Between November 2012 and March 2013, the defendants each sold cocaine or crack cocaine.
The complaints are the result of an investigation by Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, the Federal Bureau of Investigation, under the direction of Special Agent in Charge Christopher M. Piehota, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
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.Tax Preparer Sentenced to Six Years in Federal PrisonRead the Press Release
March 12, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that THOMAS THORNDIKE, 62, a Woodbury-based tax preparer, was sentenced today by Chief United States District Judge Alvin W. Thompson in Hartford to 72 months of imprisonment, followed by one year of supervised release, for engaging in tax fraud over the course of several years.
According to court documents and statements made in court, THORNDIKE was the founder and owner of Cornerstone Financial Services of Woodbury, LLC (“CFS”), a tax preparation and financial services business. As the owner of CFS, THORNDIKE prepared federal tax returns for individuals and businesses in exchange for payment of a fee. In the course of preparing many of his clients’ tax returns, THORNDIKE improperly reduced the amount of tax due in a variety of ways, including falsely claiming deductions for charitable contributions, and falsely claiming deductions for job expenses.
THORNDIKE also offered clients an opportunity to purchase audit insurance. Purchasers of audit insurance could elect to be represented by THORNDIKE in connection with any Internal Revenue Service audit of their individual federal income tax returns. If clients were audited by the IRS, THORNDIKE would provide them with blank Goodwill receipts as well as instructions as to how they should create a list of charitable donations that would correspond with the donation value THORNDIKE had entered on their returns. He also would direct his clients to create mileage logs that would support deductions he had entered for employment-related travel.
In addition, THORNDIKE prepared tax returns for his two sons that improperly identified cash payments from him to his children as wages. He also claimed hundreds of thousands of dollars in improper business deductions, including, but not limited to, wage expenses for his children, which actually were personal payments to them; more than $8,000 in personal carpentry work; and a $27,983 “sale of business property” loss stemming from THORNDIKE’s selling of an engagement ring after his marriage engagement had broken off.
In December 2008, the IRS notified THORNDIKE that he was the subject of an IRS audit examining his preparation of tax returns for the tax years 2006 and 2007. In connection with the audit, THORNDIKE assisted in the preparation of, and then submitted to the IRS, falsified documents to support the false deductions claimed on tax returns that were subject to the audit.
The IRS has estimated that THORNDIKE’s clients received in excess of $1 million in tax refunds to which they were not entitled.
Judge Thompson ordered THORNDIKE to pay $64,026.69 in back taxes, penalties and interest for tax losses related to his own fraudulent returns. THORNDIKE’s clients are required to resolve their own tax liability with the IRS.
This case has been investigated by the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Christopher Mattei and Eric Glover.
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(203) 821-3722 [email protected]Stiles Unit Inmate Sentenced for Threatening U.S. PresidentRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 26-year-old Cooper, Texas man has been sentenced to federal prison for making threats against the President of the United States of America in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Joseph Scott Sword, also known as Stretch, pleaded guilty on Dec. 19, 2012, to making threats against the President and was sentenced to 46 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, on May 31, 2011, Sword, who was incarcerated in the Texas Department of Criminal Justice (TDCJ), Stiles Unit, located in Jefferson County, Texas, wrote a letter threatening the President and First Family. Sword stated that he was a member of a violent street gang called the Black P Stone and that he had men on the street watching the President and his family. Sword was indicted by a federal grand jury on July 18, 2012.
Sword must complete the remainder of his state prison sentences of 8 years for burglary and 6 ½ years for robbery before he will be transferred to federal prison to begin serving this 46 month sentence.
This case was investigated by the U.S. Secret Service and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Statement of Manhattan U.S. Attorney Preet Bharara on the Conviction of New York City Police Officer Gilberto ValleRead the Press Release
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“Today, a unanimous jury found that Gilberto Valle’s detailed and specific plans to abduct women for the purpose of committing grotesque crimes were very real, and that he was guilty as charged. The Internet is a forum for the free exchange of ideas, but it does not confer immunity for plotting crimes and taking steps to carry out those crimes. I want to thank the jury for their time, their diligence, and their willingness to serve on a case of this nature, and I want to thank the dedicated prosecutors from my office who did such an outstanding job investigating and prosecuting this disturbing case.”
Gilberto Valle Verdict Statement - U.S. Attorney Preet Bharara Audio 3.12.13 (mp3)
Gilberto Valle Verdict Statement - U.S. Attorney Preet Bharara Audio 3.12.13 (wav)South America-Based Cocaine Trafficker Sentenced in Manhattan Federal Court to 12 Years in Prison on International Cocaine Conspiracy ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MARCEL ACEVEDO SARMIENTO was sentenced today in Manhattan federal court to 12 years in prison for conspiring to import cocaine into the United States. ACEVEDO, whose prosecution was part of “Operation Relentless,” the historic, joint undercover operation undertaken by the United States and the Government of Liberia, pled guilty in April 2012. He was sentenced today by U.S. District Judge Jed. S. Rakoff.
Manhattan U.S. Attorney Preet Bharara said: “With today’s sentencing of Marcel Acevedo Sarmiento for his role in an international cocaine distribution conspiracy, we continue to bear the fruits of our unprecedented partnership with the Government of Liberia. International cooperation is essential to our efforts to stamp out the drug trade, and there can be no better example of the results that can be achieved when we work together than this case.”
According to the Indictment, documents previously filed in Manhattan federal court, and other information in the public record:
During the last decade, drug trafficking organizations based in South America have increasingly used countries along or near the West African coast as trans-shipment hubs for importing massive quantities of cocaine to be later distributed in Europe or elsewhere within Africa. Through a combination of privately owned aircraft and maritime vessels, these organizations, predominantly based in Colombia and Venezuela, have transported hundreds of tons of cocaine, worth billions of dollars, to West African countries including Liberia.
ACEVEDO, a cocaine supplier based in Colombia and Venezuela, had the capacity to transport thousand-kilogram loads of cocaine from South America to various locations in West Africa, for later distribution within Africa, Europe, and elsewhere. The conspiracy in which he participated involved a 4,000 kilogram shipment of cocaine, with a retail value of over $100 million, which was to be flown from Venezuela to Monrovia, Liberia.
ACEVEDO, 48, a citizen of Colombia, also coordinated efforts to arrange a cocaine shipment of over 2,000 kilograms by aircraft from Venezuela to Liberia, during recorded telephone conversations with a confidential source (“the CS”) working for the Drug Enforcement Administration (“DEA”). ACEVEDO confirmed to the CS that the cocaine shipment had been protected by the Fuerzas Armadas Revolucionarias de Colombia, an international terrorist group dedicated to the violent overthrow of the democratically elected Government of Colombia.
On May 29, 2010, ACEVEDO indicated that Venezuelan authorities had seized a plane he owned worth $35 million, as well as the cocaine on board the plane, and had directed him to leave the country. He informed the CS of the seizure and then invited the CS to participate in a new cocaine shipment from Bolivia, understanding that the CS would import the CS’s 500-kilogram share of the shipment into New York.
None of the three cocaine shipments that ACEVEDO conspired to transport to Liberia actually occurred.
Mr. Bharara praised the work of the Special Operations Division of the DEA, the DEA Lagos Country Office, the U.S. Department of Justice Office of International Affairs, and the U.S. State Department. He also thanked the U.S. Embassy in Liberia and the Republic of Liberia and its National Security Agency for their efforts.
This prosecution is being handled by the Office's Terrorism and International Narcotics Unit. Assistant United States Attorneys Randall Jackson and Jenna M. Dabbs are in charge of the prosecution.
Shiprock, N.M., Man Pleads Guilty to Federal Assault and Firearms ChargesRead the Press Release
ALBUQUERQUE – Raydell Billy, 22, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pled guilty this morning to assault and firearms charges under a plea agreement with the U.S. Attorney’s Office.
Billy was arrested on Jan. 16, 2013, on a criminal complaint charging him with assault and firearms offenses. On Feb. 6, 2013, Billy was indicted and charged with two counts of being a felon in possession of a firearm, assault with a dangerous weapon; and using a firearm during a crime of violence. Billy was charged with committing these offenses on the Navajo Indian Reservation in San Juan County, N.M., on Nov. 15, 2012 and Jan. 12, 2013.
Today, Billy pled guilty to a criminal information charging him with assault with a dangerous weapon and using a firearm in furtherance of a crime of violence. In entering his guilty plea, Billy admitted that on Jan. 12, 2013, he assaulted a family member with a .22 caliber Winchester rifle by pointing the rifle at the victim and pulling the trigger. Billy also admitted hitting the victim in the head with the butt-stock of the rifle.
Billy has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. Billy faces a maximum penalty of ten years in prison for the assault with a dangerous weapon charge. He also faces a mandatory five year in prison term on the firearms charge that must be served consecutive to any prison sentence imposed on the assault charge.
The case was investigated by the Albuquerque and Farmington offices of the FBI and the Shiprock Division of the Navajo Nation Department of Public Safety, and is being prosecuted by Assistant U.S. Attorney Paul Mysliwiec.