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12 March 2013
Shiloh Man Sentenced to over 12 Years in Prison for Receipt of Child PornographyRead the Press Release
Sidney Davis, 38, of Shiloh, Illinois, was sentenced today in the United States District Court to 151 months (12 years and 7 months) in prison for Receipt of Child Pornography, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced. Following his prison sentence, Davis will be on federal supervised release for 15 years and will also be required to register as a sex offender for the remainder of his life. Davis has been in custody since April 5, 2012.
“Anytime a person who preys on innocent children is made to pay for his crimes, society is made safer and justice is done.” said United States Attorney Wigginton. “Anyone who says these crimes are nothing more than perverts looking at images in their homes has no idea of the misery the child victims of this trade are made to suffer.”
Court documents establish that in January 2012, during an undercover investigation, agents from the Illinois Attorney General High Tech Crimes Bureau were able to download child pornography from Davis’ computer using a peer-to-peer network site. Based on this information, the agents obtained a search warrant from Davis’ apartment. During a forensic examination of Davis’ computers, agents recovered numerous video and image files containing child pornography that Davis had downloaded from the Internet.
This case is part of Project Safe Childhood, a nationwide initiative launched in 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.”
The investigation was conducted by the Illinois Attorney General High Tech Crimes Bureau. The case was prosecuted by Assistant United States Attorney Ali Summers.
School Principal Charged with Possession of Child PornRead the Press Release
A one-count information was filed today against Troy Czukoski, 42, of Exton, PA, charging that on October 18, 2012, he possessed more than 150 but less than 300 images of children engaging in sexually explicit conduct, announced United States Attorney Zane David Memeger. At the time of the investigation, Czukoski was serving as Principal of the Springton Lake Middle School in the Rose Tree Media School District in Delaware County.
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, 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.
If convicted the defendant faces a maximum possible sentence of 10 years incarceration, which includes a mandatory five year term up to a lifetime of supervised release, a $250,000 fine and a $100 special assessment.
The case was investigated by the United States Postal Inspection Service and is being prosecuted by Assistant United States Attorney Michelle Rotella.
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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Russell County Drug Court Graduates ThreeRead the Press Release
LEBANON, VIRGINIA -- United States Attorney Timothy J. Heaphy addressed drug court program graduates today at a 29th Judicial Circuit ceremony in Lebanon, Va. With the Honorable Michael L. Moore presiding, three graduates celebrated sobriety and completion of the minimum 12-month month-long program of intensive supervision involving curfews, random drug screens, performing community service, attending several treatment and support groups each week and weekly court appearances. Members of the General Assembly in attendance also addressed the graduates, who spoke of the challenges they face in conquering addiction.
“The Department of Justice invests heavily in the drug court model across the country, but particularly here in Virginia,” United States Attorney Timothy J. Heaphy said today. “The Department’s Bureau of Justice Assistance awarded only nine drug court grant applications in 2012, totaling over $5 million. Virginia received $1.5 million of the total funding to support these critical, evidence-based crime preventing tools.”
“Many Virginia communities have embraced drug treatment courts. These specialized programs that are run and staffed by caring professionals can work,” said Secretary Decker. “They can foster change in the lives of those who are addicted to drugs and assist these offenders to turn their lives around and become productive members of society. Drug courts work when everyone involved is committed to their success. Offenders, families, friends, employers, communities and all of the professional and volunteer staff involved must be dedicated to working toward a positive outcome for the participants. Russell County is a shining example of a new drug treatment court that has a great prospect for success.”
Commonwealth's Attorney Brian Patton stated, "the Russell County Adult Drug Treatment Court is making a positive difference in all of the participants' lives, and this means our community is getting stronger and more resistant to the prescription drug epidemic that is plaguing our county.”
The Russell County Drug Court program began in 2010. A Drug Court Team comprised of Judge Moore, the Commonwealth’s Attorney for Russell County, defense attorneys, probation officials, the Sheriff, Chief of Police and Cumberland Mountain Community Services serve as a support mechanism and administrative oversight.
Drug treatment courts are an alternative to traditional court adjudication of drug offenders. By requiring selected defendants to undergo extensive counseling, alcohol and drug treatment, and random testing, cemented by rigorous accountability standards, Drug Courts treat the root causes of a select group of non-violent, criminal justice involved citizens: addicts.
Drug Courts are proven to reduce recidivism, promote public safety, and lower costs for taxpayers. A recent National Center for Drug Courts study on Virginia’s system concluded that the average savings per offender is over $19,000.
“The effectiveness of adult Drug Courts is not a matter of conjecture. It is the result of more than two decades of exhaustive scientific research.” (National Association of Drug Court Professionals, Research Update on Adult Drug Courts, December 2010, Douglas B. Marlowe, Chief of Science, Law and Policy)
The Virginia General Assembly adopted the Drug Treatment Court Act in 2004. The Virginia Supreme Court has administrative oversight for drug courts. There are currently 36 operating drug courts in the Commonwealth.
Removed Alien Charged with Illegally Re-Entering United StatesRead the Press Release
PITTSBURGH, Pa. - A citizen of Mexico has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal immigration laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Miguel Angel Cerna, 41, of Mexico, as the sole defendant.
According to the indictment, on or about Nov. 11, 2012, Cerna was found in Butler County, Pa., after having unlawfully re-entered the United States following removal on or about Feb. 13, 1991.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Margaret E. Picking is prosecuting this case on behalf of the government.
United States Immigration and Customs Enforcement (ICE) conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Rayne Man Pleads Guilty to Wire FraudRead the Press Release
LAFAYETTE, La: United States Attorney Stephanie A. Finley announced that Deynoodt Joseph Besse, 53, of Rayne, La., pleaded guilty Monday before U.S. District Court Judge Richard T. Haik to one count of wire fraud.
Besse worked for Rayne tire company Interco’s sales department from Aug. 1, 1997 to Aug. 3, 2010. On Jan. 29, 2003, he created a separate company called INT Sales. According the indictment, Besse used his Interco sales position to divert tire sales to his INT Sales account. He would arrange for the tire sales as an Interco sales associate and then take customers’ account information. Besse would process the account information through a point of sale device, and the transactions were then credited to a bank account associated with INT Sales. The government alleges that Besse fraudulently obtained $143,872.88 using the scheme.
Besse faces a maximum penalty of 20 years in prison, a $250,000 fine or both, and three years of supervised release for the count of wire fraud. A sentencing date has not been set.
The FBI conducted the investigation. Assistant U.S. Attorneys Daniel J. McCoy and Myers P. Namie are prosecuting the case.Rapid City Man Pleads Guilty to Escape ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that Floyd Bullman, age 40, of Rapid City, South Dakota appeared before Chief U.S. District Judge Jeffrey L. Viken on March 8, 2013 and pled guilty to a charge of Escape. The maximum penalty upon conviction is 5 years’ imprisonment and/or a $250,000 fine.
On November 5, 2012, Bullman failed to return to Community Alternatives of the Black Hills, where he was serving part of a federal sentence. The investigation was conducted by the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Eric Kelderman.
A presentence investigation was ordered and a sentencing date was set for July 8, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Radio Equipment Seized from Pirate Radio StationRead the Press Release
BOSTON – A warrant recently unsealed in U.S. District Court details the seizure of radio transmission equipment of a pirate radio station broadcasting from Brockton.
The seizure, by federal officials on March 1, 2013, occurred at the station’s last known address on Rutland Street in Brockton. The pirate radio station is alleged to have been using frequency 91.7 MHz without a license from the Federal Communications Commission (FCC). A civil action was brought seeking forfeiture of the equipment because it was allegedly used in violation of federal law.
According to an affidavit filed with the civil complaint, the unlicensed FM radio station was causing interference to Federal Aviation Administration (FAA) frequency 120.6 MHz, which is one of the primary frequencies used by pilots to communicate with FAA controllers when flying in the Boston metropolitan area. The FCC issued verbal and written warnings to the residents of 9 Rutland Street on several occasions, but the radio station continued to broadcast.
The Communications Act of 1934 prohibits the operation of radio broadcasting equipment above certain low-intensity thresholds without a license issued by the FCC. The Act authorizes the seizure and forfeiture of any electronic or radio frequency equipment used to broadcast without an FCC license. The number of available radio frequencies is limited, and unlicensed broadcasting can interfere with the broadcasting of legitimate licensed radio stations, potentially causing chaos in the radio spectrum.
“The U.S. Attorney’s Office will work in conjunction with the FCC to identify and seize equipment from pirate broadcasters,” said United States Attorney Carmen M. Ortiz. “It is hazardous to public safety for pirate radio stations to broadcast illegally, potentially interfering with critical radio communications.”
“The FCC remains vigilant about keeping the airwaves free of interference so consumers retain unobstructed access to over-the-air programs and information,” said Michele Ellison, Chief of the FCC’s Enforcement Bureau. “We will continue, with the assistance of the U.S. Attorney’s Office, to seize equipment from pirate broadcasters who potentially endanger public safety and cause interference to the programming of licensed broadcasters. This enforcement action reflects our continued commitment to that important objective.”
U.S. Attorney Ortiz and Chief Ellison made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Christine Wichers of Ortiz’s Civil Division.
Porcupine Man Pleads Guilty to AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that Quentine L. Lone Elk, age 46, of Porcupine, South Dakota appeared before U.S. Magistrate Judge Veronica L. Duffy on March 8, 2013 and pled guilty to Assault by Striking, Beating, or Wounding. The maximum penalty upon conviction is 6 months of imprisonment and a $5,000 fine.
The charge relates to Lone Elk assaulting another man at Porcupine on October 22, 2011. The investigation was conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. The case is being prosecuted by Assistant U.S. Attorney Eric Kelderman.
A presentence investigation was ordered and a sentencing date was set for May 3, 2013. The defendant was released on bond pending sentencing.
Pine Ridge Man Pleads Guilty to LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that Charles Pulliam, age 18, of Pine Ridge, South Dakota appeared before Chief U.S. District Judge Jeffrey L. Viken on March 7, 2013 and pled guilty to Larceny. The maximum penalty upon conviction is 5 years of imprisonment and a $250,000 fine.
The charge stems from Pulliam stealing a 2001 Pontiac from another individual at Pine Ridge between December 24 and 25, 2012. The investigation was conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. The case is being prosecuted by Assistant U.S. Attorney Wayne Venhuizen.
A presentence investigation was ordered and a sentencing date was set for July 5, 2013. The defendant was remanded to the custody of the U.S Marshal pending sentencing.
Pine Ridge Man Pleads Guilty to AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that Kevin Ray Apple, age 38, of Pine Ridge, South Dakota appeared before U.S. Chief District Judge Jeffrey L. Viken on March 8, 2013 and pled guilty to Assaulting a Federal Officer. The maximum penalty upon conviction is 20 years of imprisonment and a $250,000 fine.
The charge relates to Apple assaulting an Oglala Sioux Tribal Officer with a vehicle during a traffic stop at Pine Ridge on May 21, 2012. The investigation was conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. The case is being prosecuted by Assistant U.S. Attorney Eric Kelderman.
A presentence investigation was ordered and a sentencing date was set for June 11, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Owner of Non-Profit “Club” Charged with Illegal Distribution of Prescription NarcoticsRead the Press Release
The owner of a South Seattle non-profit “club” that hosted Alcoholics Anonymous meetings was arrested last night for illegal distribution of oxycodone, announced U.S. Attorney Jenny A. Durkan. The investigation, initiated by the Seattle Police Department, revealed that the Nomadian Community Resource Center (NCRC) on South Orcas Street in Seattle was a hub for prescription drug dealing. MICHAEL MARTIN SHEPARD, 64, was arrested last night and will appear this afternoon at 2:30 in U.S. District Court in Seattle.
According to the criminal complaint filed in the case, in November 2012, a concerned citizen reported to Seattle Police that illegal drug sales were occurring in the Nomadian Community Resource Center. The complaint alleges that SHEPARD would only deal drugs to those who became a “member” of the NCRC in an attempt to evade detection by law enforcement. On five different occasions in January and February 2013, SHEPARD sold prescription drugs to a person working with law enforcement. Some of the sales occurred while being monitored or personally witnessed by undercover officers from the Seattle Police Department and Drug Enforcement Administration. The sales occurred both before and after the NCRC hosted sanctioned AA meetings for addicts and alcoholics. Further investigation revealed that SHEPARD was obtaining the pills, in some instances, by purchasing prescriptions from those who had been prescribed the medication.
SHEPARD was taken into custody without incident by the Seattle Police Department and DEA. Numerous prescription narcotics and two firearms were seized at the NCRC.
Distribution of Oxycodone is punishable by up to 20 years imprisonment and a $1 million fine. The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Seattle Police Department and Drug Enforcement Administration (DEA). The case is being prosecuted by Executive Assistant United States Attorney Thomas Bates.
Oglala Man Pleads Guilty to Assault ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that Tristan Yellow Horse, 27, of Oglala, South Dakota appeared before Chief U.S. District Judge Jeffrey L. Viken on March 8, 2013 and pled guilty to a charge of Assault Resulting in Serious Bodily Injury. The maximum penalty upon conviction is 10 years’ imprisonment and/or a $250,000 fine.
On February 7, 2011 Yellow Horse was at the victim’s house in Oglala and was asked to leave. While being walked to the door, Yellow Horse punched the victim in the face and knocked him to the ground, causing a dislocated shoulder and extreme pain. The investigation was conducted by the Oglala Sioux Tribe Department of Public Safety and the Bureau of Indian Affairs Office of Justice Services. The case is being prosecuted by Assistant U.S. Attorney Sarah B. Collins.
A presentence investigation was ordered and a sentencing date was set for July 8, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
New York Man Charged with Passing Counterfeit MoneyRead the Press Release
ERIE, Pa. - A former resident of Binghamton, New York, has been indicted by a federal grand jury in Erie on a charge of violating federal counterfeiting laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Larry Patterson, 58, as the sole defendant.
According to the indictment presented to the court, Patterson passed counterfeit federal reserve notes to another individual who then distributed them to various individuals to pass.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The United States Secret Service and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Mescalero Apache Man Facing Federal Sexual Assault ChargeRead the Press Release
ALBUQUERQUE – Elroy Duffy, 51, a member and resident of the Mescalero Apache Nation, was arrested on March 7, 2013, on a criminal complaint charging him with sexual assault. Duffy entered a not guilty plea to the complaint yesterday, and this morning a U.S. Magistrate Judge in Las Cruces ordered Duffy detained pending trial.
According to the criminal complaint, Duffy allegedly sexually assaulted a Mescalero Apache woman on Oct. 14, 2012, in a residence located within the Mescalero Apache Reservation. The victim required medical care for the injuries she allegedly sustained as a result of the assault.
Court records reflect that Duffy was in tribal custody from Oct. 18, 2012 until his arrest on federal charges.
If convicted, Duffy faces a maximum sentence of life in prison and will be required to register as a sex offender. Charges in criminal complaints are merely accusations and Duffy is presumed innocent unless found guilty beyond a reasonable doubt.
The case was investigated by the Bureau of Indian Affairs, Office of Justice Services, Mescalero Agency, and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
Maryland Man Sentenced to 14 Years in Prison on Federal Charges of Transportation and Possession of Child PornographyRead the Press Release
WASHINGTON – A 37-year-old man from Silver Spring, Md., was sentenced today to 14 years in prison after earlier pleading guilty to federal charges of transportation and possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
The defendant, who is not identified here to protect the privacy of the victim, pled guilty in December 2012 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Rosemary M. Collyer. Upon completion of his prison term, the defendant must register as a sex offender for 25 years. He also will be placed on 10 years of supervised release.
According to the government's evidence, in August 2010, an underage girl reported to the Montgomery County, Md., Police Department that the defendant had been sexually abusing her for three years, in Maryland and in another state. The girl also told authorities that, using his cellphone, the defendant videotaped the abuse. Further investigation revealed that the defendant transported the videotaped images of the sexual contact with the girl.
A subsequent search warrant of the defendant’s residence revealed that he possessed numerous still images and videos in several electronic devices including cameras, cellular phones and computers. Those images depict him engaging in sexual contact with the girl.
This case was initiated by the Montgomery County Police Department and referred to the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. Project Safe Childhood is a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute those who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge Parlave and Chief Lanier praised the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended Montgomery County Police Department Sgt. Errol Birch and Detective Kristie Taylor for their work on the investigation, as well as Assistant U.S. Attorney Julieanne Himelstein, who prosecuted the case.
13-096Man Charged with Assaulting A U.S. MarshalRead the Press Release
ERIE, Pa. - A former resident of Philadelphia, Pennsylvania has been indicted by a federal grand jury in Erie on a charge of assaulting a federal officer, United States Attorney David J. Hickton announced today.
The one-count indictment named Ryan Bell, 44, as the sole defendant.
According to the indictment, on January 15, 2013, Bell assaulted a Special Deputy United States Marshal, a member of the U.S. Marshals Western Pennsylvania Task Force, who was engaged in official duties at the time of the assault.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The United States Marshal's Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Louis Shane Kanyid, Ann Joy Wetzel, Joseph Allen Wetzel, and Joelle Marie Jones Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on March 11, 2013, before U.S. District Judge Sam E. Haddon, ANN JOY WETZEL, age 55, JOSEPH ALLEN WETZEL, age 52, residents of Great Falls, and LOUIS SHANE KANYID, age 30, and JOELLE MARIE JONES, age 34, residents of Kennewick, Washington, appeared for sentencing.
ANN WETZEL was sentenced in connection with her guilty plea to possession with intent to distribute methamphetamine to a term of:
Prison: 52 months
Special Assessment: $100
Supervised Release: 4 years
JOSEPH WETZEL was sentenced in connection with his guilty plea to possession with intent to distribute methamphetamine to a term of:
Prison: 66 months
Special Assessment: $100
Supervised Release: 4 years
JONES was sentenced in connection with her guilty plea to aiding and abetting the crime of possession with intent to distribute methamphetamine to a term of:
Prison: 44 months
Special Assessment: $100
Supervised Release: 4 years
KANYID was sentenced in connection with his guilty plea to conspiracy to possess with intent to distribute methamphetamine to a term of:
Prison: 240 months
Special Assessment: $100
Supervised Release: 5 years
In an Offer of Proof filed by Assistant U.S. Attorney Jessica A. Betley, the government stated it would have proved at trial the following:
In July 2012, detectives from the Great Falls Police Department were alerted to a potential methamphetamine distribution ring in Great Falls. Detectives believed the methamphetamine was being brought to Montana from somewhere near Spokane, Washington.
On September 6, 2012, police received information from an anonymous caller, who stated Linda Reynolds was dealing methamphetamine out of her apartment in Great Falls. Based on this information, police executed a search warrant at Reynolds' apartment. Law enforcement learned Reynolds obtained methamphetamine from JOE and ANN WETZEL, as well as Mark Kness.
According to Reynolds, Kness brought his drug dealer, KANYID, to Reynolds' apartment in the winter of 2012. KANYID regularly went by "Washington" in Great Falls, because he traveled from the state of Washington. Reynolds observed methamphetamine deals between Kness and KANYID, and Kness would brag about how the methamphetamine was of great quality. Kness also introduced JOE and ANN WETZEL to KANYID in the summer of 2012. Kness routinely met with KANYID to obtain methamphetamine. He then sold the methamphetamine to JOE and ANN WETZEL, as well as other people throughout Great Falls.
JOE WETZEL stated he had only recently began dealing methamphetamine and had received three-and-a-half ounces of methamphetamine from KANYID But JOE WETZEL also added he had received an average of three grams of methamphetamine a week since January 2012 from Kness. JOE WETZEL possessed over five grams of actual (pure) methamphetamine during this time.
On September 11, 2012, KANYID and Kness met at the WETZELS' home. KANYID provided JOE and ANN WETZEL with an ounce of methamphetamine for $1,700. Law enforcement arrested KANYID shortly after this deal.
Law enforcement then found KANYID was staying at a motel in Great Falls. Upon arrival at the motel, officers learned KANYID was sharing a room with JONES and their 18-month-old son. The officers observed JONES, with her infant son, attempting to leave the motel while carrying two bags. Law enforcement spoke with JONES and she stated she had received a call from a man approximately 15 minutes before officers arrived at the motel. The man told JONES to remove the bags from the motel room and place them in the trunk of the car, as well as erase all messages on her phone. JONES undertook these tasks until she was stopped by the officer in the motel lobby.
A search of KANYID and JONES' motel room and these bags revealed cash, cocaine, and methamphetamine, as well as a safe which contained a handgun and ammunition. Law enforcement seized over 50 grams of actual (pure) methamphetamine in their investigation.
Law enforcement contacted ANN WETZEL when she brought methamphetamine to Reynolds' house. At that time, ANN WETZEL had 26.7 grams of actual (pure) methamphetamine in her possession. She told police she purchased methamphetamine from Kness and KANYID on numerous occasions and also sold methamphetamine.
Reynolds and Kness pled guilty to federal charges.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that they will likely serve all of the time imposed by the court. In the federal system, they do have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Russell County Drug Task Force.
Local Pharmacist Sentenced to 10 Years in Federal Prison for Filling Hundreds of Fraudulent Oxycodone PrescriptionsRead the Press Release
Tampa, Florida - U.S. District Judge James D. Whittemore sentenced Emmanuel I. Mekowulu (56, Tampa) yesterday to 10 years in federal prison for conspiring with other persons to knowingly and intentionally distribute and dispense, and cause the distribution and dispensing of Oxycodone outside of a legitimate medical purpose and not in the usual course of professional practice. The court also ordered Mekowulu to forfeit his Florida pharmacist license, and the pharmacy license he held for the Felky Pharmacy, both of which he used to facilitate the offense. As part of his sentence, the court also entered a money judgment in the amount of $97,290, representing the proceeds of the crime. Mekowulu was found guilty by a federal jury on December 11, 2012.
According to testimony and evidence presented at trial, from June 2008 through March 2009, Mekowulu was a pharmacist and the owner of Felky Pharmacy located on North Florida Avenue, in Tampa. During that same time period, Troy Wubbena was a physician's assistant and owner and operator of the Neurology & Pain Center clinics located in Tampa, Lakeland, Sarasota, Orlando, and Jacksonville. Brett Ridenour was an employee of the clinics. Together, and with others, the conspirators used hundreds of blank prescriptions that were pre-signed and filled by Dr. Jeffrey Friedlander (co-owner of the clinic) for large quantities of Oxycodone.
The prescriptions included the names of more than 60 persons, many of them patients and employees of the clinics who did not need or receive the Oxycodone and were unaware that the prescriptions were written in their names. The illegal prescriptions were filled at Felky Pharmacy. Over the nearly 10 month period, Wubbena and Ridenour presented more than 340 fraudulent prescriptions to Mekowulu. Mekowulu filled the prescriptions without verification or questioning their validity. Through this scheme, nearly 50,000 pills of Oxycodone were later sold in the Tampa Bay area.
Wubbena, Ridenour, and Friedlander previously pleaded guilty to federal charges for their roles in the conspiracy. Wubbena was sentenced to serve 10 years in federal prison. Ridenour was sentenced to serve 5 years in federal prison, and Friedlander was sentenced to 9 years in federal prison.
This case was investigated by and the United States Department of Health & Human Services, Office of Inspector General, the Federal Bureau of Investigation, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Kathy J. M. Peluso.
Lima Man Charged with Child Pornography CrimesRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced today that Michael S. Dockery, a 30 year-old from Lima, Ohio, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.
The indictment charges that from on or about February 10, 2012, through on or about June 1, 2012, Dockery knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct.
On June 5, 2012, images of child pornography were found on his HP Compaq desktop computer, Dell laptop computer, and six computer thumb drives. On February 4, 2013, images of child pornography were found on his HP Probook 4530s laptop. On February 22, 2013, images of child pornography were found on an additional computer thumb drive, according to the indictment.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Lima Office of the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Kansas City Man Sentenced to 15+ YearsFor Robbing Bank with HatchetRead the Press Release
KANSAS CITY, KAN. - A Kansas City, Mo., man was sentenced Tuesday to 188 months in federal prison for robbing an Overland Park bank with a hatchet, U.S. Attorney Barry Grissom said.
Derek T. Brownlee, 35, Kansas City, Mo., pleaded guilty to one count of armed robbery. A criminal complaint filed in July alleged Brownlee was wearing a bandanna over his face and carrying a hatchet on July 1, 2013, when he robbed the Metcalf Bank at 7800 College Boulevard in Overland Park.
The complaint alleged Brownlee jumped the teller’s counter and demanded money. He took cash from a drawer and some personal items from a teller including a Kindle Fire and a cellular telephone. When police officers spotted his car, he led them on a chase at speeds up to 90 miles an hour before being stopped in the 8700 block of Indiana in Kansas City, Mo. He was arrested after he fled from the car on foot.
Grissom commended the FBI, the Overland Park Police Department, the Kansas City, Mo., Police Department and Assistant U.S. Attorney Kim Martin for their work on the case.Justice Department Shuts Down Maryland Return PreparerRead the Press Release
A federal court has granted the United States’ request to permanently bar James M. Unterreiner II from preparing tax returns, the Justice Department announced today. According to the government complaint, from 2002 until 2003, Unterreiner worked for Tax Resolutions Inc., where he assisted owner Irvin H. Catlett Jr. and others in marketing a tax evasion scheme in which Tax Resolutions’ clients made investments in various sham companies and reported bogus tax losses. Unterreiner consented to the injunction.
As the Justice Department previously announced , testimony heard at Catlett’s nine-day criminal trial in 2010 showed that Tax Resolutions prepared fraudulent tax returns for its clients that included fictitious business losses which Tax Resolutions falsely claimed resulted from automobile leasing and sales. The fake losses reduced the amount of taxable income and total tax reported by Tax Resolutions’ clients. As a result, the clients falsely claimed refunds from the Internal Revenue Service (IRS).
Testimony at that trial also showed that Unterreiner assisted Catlett and helped perpetuate the scheme by preparing client tax returns by first determining each client’s tax and then adding to the return a fictitious loss from a tax shelter entity large enough to reduce the client’s tax due to zero. Unterreiner continued the scheme even after Catlett was imprisoned on other charges. As a result of the scheme, approximately 275 tax returns were filed with the IRS which reported bogus losses, resulting in a tax loss to the United States in excess of $3 million.
In addition to barring Unterreiner from preparing tax returns for life, the injunction also bars Unterreiner from representing others before the IRS, as well as the a dvising, assisting, counseling, or instruction of anyone about the preparation of any federal income tax return.
Related Materials:
United States v. James M. Unterreiner II
Complaint (PDF)
Stipulation for Final Permanent Injunction and Order (PDF)
Judge Sentences Heroin Trafficker to 21 Years in PrisonRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pa., has been sentenced in federal court for violating federal narcotics trafficking laws, United States Attorney David J. Hickton announced today.
Gregory Washington, 36, also known as “Joe”, “Run”, “Rizzy”, and “Illa”, was sentenced to serve 262 months in prison followed by five years of supervised release by United States District Judge Arthur J. Schwab. From January 2010 to March 3, 2011, Washington conspired to distribute and possess with intent to distribute heroin. Washington obtained thousands of grams of raw heroin and then arranged for it to be bagged, bricked, transported and stored by associates. Washington then supplied the heroin to other significant traffickers and ultimately sold to the users who were hooked on it. Washington did so while he was on state parole after serving 10- to 20-year prison sentences for a drug trafficking-related double murder committed in the 1990's. Washington’s federal sentence was ordered to be served consecutively to any sentence imposed for the violation of his state parole conditions.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pittsburgh Bureau of Police, the United States Postal Inspection Service, the Pennsylvania State Police, the Allegheny County Sheriff's Office, the Ross Township Police Department, the Canonsburg Police Department and the Allegheny County Police Department for the successful investigation leading to the conviction and sentence in this case.
James Edward Calloway and Desi Surtane Hansford Indicted for Bribery Concerning A Governmental Program Receiving Federal FundsRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that on March 12, 2013, a Federal Grand Jury in Macon, Georgia, indicted two City of Forsyth Councilmen on public corruption charges. James Edward Calloway, age 60, and Desi Surtane Hansford, age 35, both of Forsyth, Georgia, were charged in the Three Count federal indictment with the following charges: Bribery Concerning a Governmental Program Receiving Federal Funds involving $5,0000.00 or more, all in violation of Title 18, United States Code, Section 666 (a)(1)(B).The indictment alleges that the defendants, elected officials, presided over a standing subcommittee responsible for receiving bids and selecting an independent company to administer services for the City of Forsyth. The alleged corruption occurred from December 27, 2012 to March 11, 2013 and involved a solicitation of $20,000.00 from the defendants to a service provider in exchange for influence regarding a city contract.
Mr. Calloway has been a Councilman for more than twenty years. Mr. Hansford has served for six years. The defendants face a maximum penalty of ten years imprisonment, a $250,000.00 fine and a period of supervised release for each count.
An indictment is merely an accusation and each defendant is presumed innocent unless and until they are proven guilty.
The case was initiated and investigated by the Federal Bureau of Investigation, Macon Division. Assistant United States Attorney Sonja Profit is prosecuting the case for the Government. For additional information, please contact Sue McKinney, Public Affairs Specialist at (478) 621-2602.
Informational: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on March 12, 2013, before U.S. Magistrate Judge Keith Strong, the following individuals were arraigned:
THEODORE WHITFORD, a 27-year-old resident of Box Elder, appeared on a charge of assault resulting in serious bodily injury. If convicted of this charge, WHITFORD faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Danna R. Jackson is the prosecutor for the United States. The investigation was a cooperative effort between the Federal Bureau of Investigation, the Rocky Boy's Police Department, and the Hill County Sheriff's Office.
JOYCE SPOONHUNTER, a 56-year-old resident of Browning, appeared on a charge of wire fraud. She is currently released on special conditions. If convicted of this charge, SPOONHUNTER faces possible penalties of 20 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Ryan G. Weldon is the prosecutor for the United States. The investigation was conducted by the U.S. Bureau of Land Management - Inspector General's Office.
WILLIAM SZUDERA, a 76-year-old resident of Havre, appeared on a charge of mail fraud. He is currently released on special conditions. If convicted of this charge, SZUDERA faces possible penalties of 20 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Chad C. Spraker is the prosecutor for the United States. The investigation was conducted by the U.S. Department of Energy.
BLAIR CHIEFSTICK, a 22-year-old resident of Box Elder, appeared on a charge of aggravated sexual abuse. He is currently detained. If convicted of this charge, CHIEFSTICK faces possible penalties of life in prison, a $250,000 fine, and lifetime supervision. Assistant U.S. Attorney Danna R. Jackson is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
JOSCAYNE DENNY, a 33-year-old resident of Box Elder, appeared on a charge of distribution of methamphetamine to a person under the age of 21. She is currently detained. If convicted of this charge, DENNY faces possible penalties of 40 years in prison, a $1,000,000 fine, and 6 years supervised release. Assistant U.S. Attorney Danna R. Jackson is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
WILLIAM DAVIS, JR., a 40-year-old resident of Havre, appeared on charges of aggravated sexual abuse and abusive sexual contact. He is currently detained. If convicted of these charges, DAVIS faces possible penalties of a mandatory minimum of 30 years in prison and could be sentenced to life, a $250,000 fine, and lifetime supervision. Assistant U.S. Attorney Jessica A. Betley is the prosecutor for the United States. The investigation was a cooperative effort between the Federal Bureau of Investigation and the Fort Belknap Tribes Law Enforcement.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on March 12, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, the following individual was arraigned:
DOUGLAS ROBERT BROOKS, a resident of Missoula, appeared on a charge of receipt of child pornography. He is currently detained. If convicted of this charge, BROOKS faces possible penalties of a mandatory minimum of 15 years in prison and could be sentenced to life, a $250,000 fine, and lifetime supervision. Assistant U.S. Attorney Cyndee L. Peterson is the prosecutor for the United States. The investigation was conducted by the Internet Crimes Against Children (ICAC) Task Force.
The defendant pled not guilty to the charge.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Hudson County, N.J., Woman Sentenced to 24 Months in Prison for Using Her Deceased Aunt’s Identity in Bank Fraud SchemeRead the Press Release
CAMDEN, N.J. – A Hudson County, N.J., woman today was sentenced to 24 months in prison for using the identity of her deceased aunt to obtain access to credit card and deposit accounts, causing three banks to lose more than $30,000, U.S. Attorney Paul J. Fishman announced.
Jocelyn Russo, 37, of Jersey City, previously pleaded guilty before U.S. District Judge Joseph E. Irenas in Camden federal court to an Information charging her with one count of bank fraud. Judge Irenas sentenced Russo today in federal court in Camden.
According to documents filed in the case and statements made in court:
Russo admitted that after the death of her aunt (“JB”) she used JB’s Social Security number and other personal identifying information to fraudulently add herself to JB’s credit accounts at Bank of America and JPMorgan Chase, and to open up a deposit account at Bank of America. She contacted Bank of America and JPMorgan Chase by phone and claimed to be JB, providing personal identifying information. Russo then added herself to JB’s credit card accounts as an authorized signer and used the cards. Russo also admitted that she used JB’s debit card to access JB’s Provident Bank account without authorization.
Russo made large purchases on JB’s credit cards, which she did not pay off, and withdrew all of the funds from JB’s bank accounts with Provident Bank. The scheme caused Bank of America, JPMorgan Chase, and Provident Bank to lose more than $30,000.
In addition to the prison term, Judge Irenas sentenced Russo to five years of supervised release and ordered her to pay restitution of $33,289.
U.S. Attorney Fishman credited special agents of the FBI under the direction of Acting Special Agent in Charge David Velazquez in Newark for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Daniel V. Shapiro of the U.S. Attorney’s Office General Crimes Unit in Newark.
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Defense counsel: Kevin Carlucci Esq, Assistant Federal Public Defender, NewarkHistoric Agreement Places New Prosecutor on Standing Rock Reservation to Prosecute Violence Against Women CasesRead the Press Release
United States Attorney Brendan V. Johnson announced the appointment of Erin Shanley as Special Assistant United States Attorney (SAUSA) for the Standing Rock Sioux Tribe. She was sworn in March 4, 2013 at the District Court Chambers in Pierre, South Dakota by U.S. District Judge Roberto A. Lange.
Shanley started her duties on January 14, 2013 and is headquartered at Standing Rock Tribal Court, Office of the Prosecutor, in Fort Yates, North Dakota.
The addition of a special tribal prosecutor is a result of a Memorandum of Understanding (MOU) signed between the Standing Rock Sioux Tribe (SRST) and the United States Attorneys’ Offices in the District of South Dakota and the District of North Dakota. The MOU was signed on July 10, 2012 at SRST headquarters.
The MOU was a historic agreement between the SRST and the United States Department of Justice. The agreement authorized the hiring of a Tribal SAUSA to prosecute violence against women cases in federal and tribal courts. The funding for this new position is provided by a grant from the Justice Department’s Office on Violence against Women.
U.S. Attorney Johnson is past Chairman of the Justice Department’s Native American Issues Subcommittee. In that capacity, Johnson spearheaded this initiative and he wrote and submitted the proposal for the creation of this position to address the unique jurisdictional issues of the Standing Rock Reservation. During his time as U.S. Attorney, he has made the prosecution of cases involving violence against women a top priority.
Shanley will handle the prosecution of cases involving domestic violence, dating violence, sexual assault, and stalking that are committed within the boundaries of the SRST. She will have authority to pursue those cases in federal court in both South Dakota and North Dakota, as well as in Standing Rock Tribal Court. She will work in close collaboration with Assistant U.S. Attorneys in both states on these cases.
Shanley is an enrolled member of the Cheyenne River Sioux Tribe. Prior to this appointment, she was Assistant Prosecutor for the Pascua Yaqui Tribe in Arizona.
Gaston County Man Sentenced to 17 Years in Prison for Possession and Transportation of Child PornographyRead the Press Release
CHARLOTTE, N.C. – A Gaston County man was sentenced to 204 months in prison today for possession and transportation of child pornography, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Bobby Clarence Byrd, Jr., 44, of Lowell, N.C. was also ordered to serve 15 years under court supervision following his prison sentence and to register as a sex offender.
Joining U.S. Attorney Tompkins in making today’s announcement are Roger A. Coe, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Stacy Conley, of the Gastonia Police Department.
In November 2011, a federal criminal indictment charged Byrd with one count of possession and one count of transportation of child pornography. According to filed court documents and today’s sentencing hearing, in or about January 2011, Byrd transported or possessed 59 videos and 342 images depicting the sexual abuse of children as young as two years old. Byrd pleaded guilty to the charges in April 2012. During the course of the investigation, law enforcement discovered that Byrd had sexually abused a young child in 2006. Byrd pleaded guilty to state charges and was sentenced to 16-20 months in state prison for his criminal conduct.
Byrd has been in local federal custody since December 2011. He will be transferred into the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole. The investigation was handled by the FBI and Gastonia Police Department.
***In a separate case involving child pornography, on Monday, March 11, 2013, Judge Whitney sentenced Paul Durfee, 45, of Charlotte, to 70 months in prison, followed by five years of supervised release for possession of child pornography. Durfee was also ordered to register as a sex offender. According to filed documents and yesterday’s sentencing hearing, from February 2007 to December 2010, Durfee participated in a website that was being used to share child pornography internationally. Agents tracked Durfee to his home in Charlotte and executed a search warrant in December 2010. A forensic examination of a computer seized during the search located images of children being sexually abused and exploited.
Durfee has been in local federal custody since April 2012, and will be transferred into the custody of the Federal Bureau of Prisons upon designation of a federal facility where he will serve his sentence without the possibility of parole. Durfee’s investigation was handled by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
The prosecution for the government of Byrd and Durfee was handled by Assistant U.S. Attorney Cortney Escaravage of the U.S. Attorney’s Office in Charlotte.
Both cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Fuquay-Varina Man Sentenced for Bank RobberyRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that in federal court today VAN DAVID KALCEVIC, 22, of Fuquay-Varina, North Carolina was sentenced by Senior United States District Judge Malcolm J. Howard to 180 months imprisonment, followed by 5 years of supervised release.
On October 15, 2012, KALCEVIC pled guilty to bank robbery by force and violence, and by intimidation, in violation of Title 18, United States Code, Section 2113(a) and (d), and to knowingly using and carrying a firearm during and in relation to a crime of violence, in violation of Title 18, United States Code, Sections 924(c)(1)(A) and Section 924(e)(2)(B).
According to the investigation, on March 29, 2012, KALCEVIC robbed the Branch Banking and Trust, located at 1130 Bear Creek Commons Drive in Apex, North Carolina of approximately $4,422.00.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Federal Bureau of Investigation, North Carolina State Highway Patrol, Apex Police Department and the Raleigh Police Department. Assistant United States Attorney S. Katherine Burnette prosecuted the case.
Former Pennington Gap Police Officer Pleads Guilty to Distribution of LortabsRead the Press Release
ABINGDON, VIRGINIA -- - United States Attorney Timothy J. Heaphy announced today that John Charles Kelly entered a guilty of plea in the United States District Court for the Western District of Virginia in Abingdon to a charge involving the distribution of hydrocodone.
John Charles Kelly, 39, of Pennington Gap, Va., entered a plea of guilty to one count of distribution of hydrocodone.
According to evidence presented at the guilty plea hearing by Assistant United States Attorney Zachary Lee, Kelly, an officer with the Pennington Gap, Virginia Police Department, was socializing with two females at his residence in July 2012 and distributed approximately twenty Lortab pills to the two females.
Sentencing has been set for May 31, 2013 at 10:30 a.m. in the United States District Court for the Western District of Virginia in Abingdon. Kelly faces a potential maximum sentence of up to 10 years imprisonment and a potential fine of $500,000.
The investigation of the case was conducted by the Lee County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms, and Explosives, United States Marshals Service, Federal Bureau of Investigation, Virginia State Police, Southwest Virginia Drug Task Force, and the Drug Enforcement Administration. Assistant United States Attorney Zachary Lee is prosecuting the case for the United States.
Former North Carolina Resident Sentenced to Ten Years in Prison for Money Laundering ConspiracyRead the Press Release
Defendant ordered to pay more than $31 million in restitution for his role in the Queen Shoals Ponzi scheme
CHARLOTTE, N.C. – A former North Carolina resident was sentenced today in U.S. District Court for his involvement in the $32.5 million Queen Shoals Ponzi scheme, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Robert J. Conrad, Jr. sentenced Gary D. Martin, 61, of St. Augustine, Fla. to 10 years in prison to be followed by two years of supervised release. Judge Conrad also ordered the defendant to pay $31,707,038 as restitution to the victims of the Ponzi scheme and ordered defendant liable to forfeit and repay the Government for the approximate $28,500,000 in proceeds of the scheme.
Joining U.S. Attorney Tompkins in making today’s announcement are Roger A. Coe, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and the North Carolina Secretary of State Elaine F. Marshall.
In February 2012, Martin pleaded guilty to one count of a money laundering conspiracy in connection with the Queen Shoals Ponzi scheme. According to court documents and court proceedings, on or about December 2007, Martin formed Queen Shoals Consultants, LLC (QSC) in North Carolina. Martin and others induced victims to invest over $28.5 million in the Queen Shoals Ponzi scheme operated by Sidney Hanson. Court records show that although Hanson never directly told Martin that Queen Shoals was a Ponzi scheme, Martin induced victims to invest in the Queen Shoals Ponzi scheme through a series of false and fraudulent representations. Specifically, Martin falsely claimed that QSC had over 20 years’ experience in financial services and international finance and that he had a vast background in financial services, including the silver, gold and foreign currency trading markets. In fact, Martin had no such experience, held no professional licenses related to finance or investments and had never engaged in any silver, gold or foreign currency trading.
According to court documents, Martin, through the QSC web site and other means, also made false claims about QSC’s financial expertise in “Self-Directed IRA Strategies and Fixed Rate Accounts.” Martin held QSC out as “leaders in Professional Private Placement Retirement Planning” and falsely claimed that QSC had a “proven method of diversification [that] spreads the risk nicely for a balanced portfolio,” when, in fact, QSC offered no such diversification and funneled victim funds solely into the Queen Shoals Ponzi scheme. Court records show that Martin routinely vouched for the success and reliability of Queen Shoals by claiming to have personally invested a significant amount of his own money into Queen Shoals when, in fact, Martin personally invested only $4,000.
According to filed documents and today’s sentencing hearing, Martin engaged in money laundering transactions by utilizing the referral fees he received from Hanson to pay commissions to himself and the so-called QSC consultants. From in or about 2007 to in or about 2009, Martin received over $1.9 million in referral fees from Hanson and paid the consultants over $1.5 million during the relevant time period in return for inducing victims to invest in the Queen Shoals Ponzi scheme. These payments caused QSC consultants to induce additional victims to invest in the Queen Shoals Ponzi scheme, thereby perpetuating the scheme.
In announcing today’s sentence, Judge Conrad described the impact of the Ponzi scheme on the victims. “This Ponzi scheme had devastating results,” Judge Conrad said. “People in their 60’s, 70’s, 80’s and even 90’s lost everything because Hanson and Martin defrauded them.” Judge Conrad also noted that Martin, “went into homes, got people to rely on him and told them things that weren’t true, and based on false representations, many lost their life savings…He is seriously culpable.”
Martin was released on bond and was ordered to self-report to the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
Sidney Hanson, the mastermind of the Queen Shoals Ponzi scheme, was convicted of securities fraud and wire fraud and is currently serving a 22-year federal sentence. He was also ordered to pay over $31,000,000 in restitution. To date, over $9,000,000 has been paid to the Clerk of Court to pay victims of the Ponzi scheme. In addition, other assets, including federally forfeited precious metals and federally forfeited real estate, will be liquidated and the net sale proceeds will be paid to victims.
U.S. Attorney Tompkins thanked the Justice Department’s Asset Forfeiture and Money Laundering Section, the CFTC, and the North Carolina Secretary of State for their invaluable assistance in recovering assets, thereby ensuring that Hanson’s victims receive restitution money owed to them. U.S. Attorney Tompkins commended the quick asset seizures before the collapse of Queen Shoals, which will result in the return of nearly 30 percent of victims’ losses. The U.S. District Court has begun issuing restitution payments of the recovered funds to identified victims of the Ponzi scheme.
Martin’s case was investigated by the FBI with assistance from the Securities Division of the North Carolina Department of the Secretary of State. U.S. Attorney Tompkins also acknowledged the invaluable assistance provided by the Commodities Futures Trading Commission and the Florida Office of Financial Regulation, Bureau of Financial Investigations in this case. The prosecution is handled by Assistant United States Attorney Mark T. Odulio, of the U.S. Attorney’s Office in Charlotte.
Former New York City Police Officer Found Guilty in Manhattan Federal Court of Kidnapping Conspiracy and Illegally Accessing Federal Law Enforcement DatabaseRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that former New York City Police Officer GILBERTO VALLE was found guilty today in Manhattan federal court of conspiracy to kidnap and illegally accessing the federal National Crime Information Center (“NCIC”) database. The jury found that VALLE, who was an active-duty officer with the New York City Police Department (“NYPD”) at the time of his arrest, conspired with more than one individual to kidnap, rape, torture, kill, and cannibalize a number of women, and that he illegally used the NCIC database to obtain information about one of his intended victims. He was convicted after a three-week trial before U.S. District Judge Paul G. Gardephe.
Manhattan U.S. Attorney Preet Bharara said: “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 FBI and the dedicated prosecutors from my office who did such an outstanding job investigating and prosecuting this disturbing case.”
According to the Complaint and the Indictment filed in Manhattan federal court and the evidence presented at trial:
In September 2012, the FBI learned that VALLE was sending e-mail and instant messages discussing plans with multiple co-conspirators to kidnap, rape, torture, kill, and cannibalize a number of women. A court-authorized search of his computer revealed that VALLE had created files pertaining to at least 80 women and containing multiple photographs of each woman. The computer also contained personal information about some of these women - including relevant addresses, physical descriptions, and photographs - and electronic communications in which VALLE and co-conspirators detailed their plans. Additionally, VALLE used the NCIC database and other methods to locate potential victims, surveilled a victim, drafted an “operation plan” to abduct and “cook” an identified woman, researched methods of disabling and drugging women, and agreed with at least one other individual to kidnap a woman in exchange for $5,000.
Victim-1
In July 2012, VALLE had a series of online communications with a co-conspirator (“CC-1”) in which they discussed how best to kidnap, murder, and cannibalize Victim-1, including where to find a recipe for chloroform. During this time period, VALLE also created a document entitled “Abducting and Cooking [Victim-1]: a Blueprint.” The document contains pedigree information about Victim-1—including her name, ethnicity, height, weight, and bra size. The document also contains a section called “Materials Needed” in which VALLE wrote, in part, the following:
Car (I have it)
Chloroform (refer to website for directions)
Rope (Strongest kind to tie her up)
In subsequent instant message conversations, CC-1 asked VALLE, “How was your meal?” to which VALLE immediately responded, “I am meeting her [i.e., Victim-1] on Sunday.” On the following Sunday, VALLE met with Victim-1 at a restaurant for brunch. Following this meeting, VALLE communicated with CC-1 regarding the brunch with Victim-1 and said that “[Victim-1] looked absolutely mouthwatering.”
Victim-2
VALLE also had conversations with another co-conspirator (“CC-2”) in late February 2012, in which they negotiated and agreed to a price for which VALLE would kidnap another woman (“Victim-2”). In those conversations, VALLE insisted upon a price no less than $5,000 and assured CC-2 that Victim-2 would be bound, gagged, and alive when he delivered her. In a post-arrest statement to the FBI, VALLE admitted that, in early March 2012, he was present on the block in Manhattan where Victim-2’s apartment building is located. When the FBI later interviewed Victim-2, she stated that she has never invited VALLE to her home and does not know him well.
The NCIC Database
On May 31, 2012, VALLE accessed the NCIC database and obtained information about a woman (“Victim-3”) whose name matched the name of one of the Individual Files he created. VALLE did not have authorization to perform that search or to access any information about Victim-3.
VALLE, 28, was convicted of one count of conspiracy to commit kidnapping, which carries a maximum sentence of life in prison, and a maximum fine of $250,000 or twice the gross gain or loss from the offense. He was also convicted of one count of intentionally and knowingly accessing a computer without authorization and exceeding his authorized access, thereby obtaining information from a department and agency of the United States. This count carries a maximum sentence of one year in prison, and a maximum fine of $100,000. VALLE is scheduled to be sentenced by Judge Gardephe on June 19, 2013 at 11:00 a.m.
Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation and the New York City Police Department.
This case is being handled by the Office’s Violent Crimes Unit. Assistant United States Attorneys Hadassa Waxman and Randall W. Jackson are in charge of the prosecution.
U.S. v. Gilberto Valle Indictment
Former IRS Official Pleads Guilty in Manhattan Federal Court to Violating Conflict of Interest Law and Illegally Disclosing Audit InformationRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that DENNIS LERNER, a former employee of the Internal Revenue Service (“IRS”), pled guilty yesterday in Manhattan federal court to violating a criminal conflict of interest law and to illegally disclosing confidential audit information during the time he was an IRS employee. LERNER was arrested in September 2012. He pled guilty before U.S. District Judge John F. Keenan.
Manhattan U.S. Attorney Preet Bharara said: “Dennis Lerner betrayed the trust put in him as a public servant by parlaying his position at the IRS into a high-powered job at a bank he was auditing through a scheme that may now land him in prison. We will not tolerate corrupt government employees and will prosecute and punish them to the full extent of the law.”
According to the allegations in the Criminal Complaint and the Criminal Information, along with statements made during today’s plea proceeding in Manhattan federal court:
From June 2010 through August 2011, LERNER worked as an International Examiner in the New York office of the IRS. For several months leading up to his resignation from the IRS, one of his chief responsibilities involved conducting an audit of an international bank (“Bank 1”) related to approximately $1 billion in allegedly unreported income. Shortly before his resignation, LERNER led negotiations on behalf of the IRS which resulted in a proposed $210 million settlement between Bank 1 and the IRS. The settlement was still pending final approval at the time of his departure. Unbeknownst to his colleagues and supervisors, LERNER applied for, interviewed for, and accepted the position of Tax Director at Bank 1 during the time period in which he was representing the IRS in the Bank 1 settlement discussions. He also sent multiple emails to an individual in which he expressed both his dissatisfaction with his job at the IRS and his hope that he would secure the Bank 1 job. At no time did he notify the IRS of his efforts to obtain employment with Bank 1.
LERNER also engaged in improper disclosure of IRS tax return information during the time period that he worked as an IRS International Examiner. Specifically, he revealed the identity of a bank he was auditing to an individual who was not employed by the IRS.
LERNER, 60, of Edgewater, New Jersey, faces a maximum sentence of 10 years in prison. He is scheduled to be sentenced by Judge Keenan on July 11, 2013 at 11 a.m.
Mr. Bharara praised the outstanding investigative work of the Treasury Inspector General for Tax Administration, which included the assistance and cooperation of IRS management.
The case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorney Randall W. Jackson is in charge of the prosecution.
U.S. v. Dennis Lerner Information
Former Fugitive Indicted by A Federal Grand Jury After His Capture in GrenadaChelsea Man Listed on U.S. Diplomatic Security Service’s Most WantedRead the Press Release
BOSTON – A Chelsea man was indicted today by a federal grand jury for making false statements in his application for a U.S. passport.
Glen Turczyn, 42, was originally charged by federal criminal complaint in December 2012. He is alleged to have falsely applied for a United States passport at the U.S. Embassy in St. George’s, Grenada, in October 2012 using an assumed identity of Francis H. Turczyn. Turczyn allegedly presented a fraudulently obtained birth certificate and Massachusetts Identity Card in support of his passport application.
As referenced in the charging documents, the Consular Affairs office in Grenada conducted an investigation into Turczyn’s United States passport application, and determined that a Glen Turczyn had previously made an application for a passport in prior years. The photographs for Glen Turczyn and Francis Turczyn matched which prompted a referral to the Bureau of Diplomatic Security Service for the United States Department of State for further investigation.
Turczyn was detained by Diplomatic Security Service agents in coordination with law enforcement authorities in Grenada and returned to the United States in January 2013 where he was arrested. Turczyn had been listed on the Bureau of Diplomatic Security Service’s Most Wanted List.
The maximum sentence under the statute is 10 years in prison, followed by three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz and Todd Ziccarelli, Special Agent in Charge of the Department of State’s Bureau of Diplomatic Security’s Boston Field Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Carlos A. Lopez of Ortiz’s Major Crimes Unit.
The details contained in the Indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Corrections Officer Pleads Guilty to Bribery ChargeEmployee Took Cash to Smuggle Items into D.C. JailRead the Press Release
WASHINGTON – April Johnston, a former corrections officer, pled guilty today to a federal bribery charge for accepting money to bring contraband into a District of Columbia correctional facility, announced U.S. Attorney Ronald C. Machen Jr. and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Johnston, 42, pled guilty in the U.S. District Court for the District of Columbia. The Honorable Robert L. Wilkins scheduled sentencing for June 3, 2013. The charge carries a maximum statutory penalty of 15 years in prison and a fine. Johnston also is subject to a forfeiture judgment of $2,500.
According to the government’s evidence, at the time of the offense, Johnston was employed as a corrections officer for the District of Columbia Jail and had met with individuals inside the jail to discuss the possibility of smuggling contraband to an inmate. In September 2011, she made a telephone call to a person who she believed was an associate of an inmate. In fact, however, that person was an undercover agent with the FBI.
Johnston met the undercover agent on Sept. 28, 2011 at her residence in Maryland. During the meeting, the undercover agent paid her $1,000 and gave her a computer thumb drive to smuggle into the jail. She agreed to use her position as a corrections officer to smuggle the item to the inmate in return for the money, and she later did so.
On Oct. 5, 2011, Johnston again met the undercover agent at her residence. This time, the agent paid her $1,500 along with a thumb drive and mobile USB flash drive to smuggle into the jail. Once again, she smuggled the items into the jail in return for the money.
Johnston is the second corrections employee to plead guilty to a bribery charge in recent months. In December 2012, Daishawn Goodson, a former corrections officer employed by the Corrections Corporation of America (CCA), pled guilty to taking money to smuggle contraband into the District’s Correctional Treatment Facility. She is awaiting sentencing.
In announcing today’s guilty plea, U.S. Attorney Machen and Assistant Director in Charge Parlave commended the work of the agents who investigated the case from the FBI’s Washington Field Office. They also expressed appreciation for the assistance provided by the District of Columbia Department of Corrections Office of Investigative Services. Finally, they acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Nicole Wattelet and Assistant U.S. Attorney Seth B Waxman, who is prosecuting the case.
13-094Felon Charged with Illegally Possessing PistolsRead the Press Release
PITTSBURGH, Pa. - A Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Michael Eugene Gorny, 24, as the sole defendant.
According to the indictment, on or about July 4, 2012, Gorny, being a convicted felon, illegally possessed a .40 S&W caliber Glock pistol and a 9mm caliber Lorcin pistol. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year to possess a firearm.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Katherine A. King is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case. This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Jury Convicts Men for 2011 New Year Day Robbery and Killing on Red Lake Indian ReservationRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a jury found two men guilty for murdering a couple on the Red Lake Indian Reservation on New Year’s Day 2011. Following a two-week trial, the jury convicted Geshik-O-Binese Martin, age 30; Edward McCabe Robinson, age 28; both of Red Lake on two counts of murder in the first degree, two counts of murder in the second degree, and one count of robbery. The jury also found David John Martin, age 46, of Columbia Heights, guilty on one count of robbery. A fourth defendant, George Allen Martin, age 24, also of Red Lake, was acquitted on all counts. On January 15, 2013, the four were charged in a superseding indictment.
Following today’s convictions, United States Attorney B. Todd Jones said, “This case is an example of the troubling levels of senseless violence our communities face every day. Thanks to the persistence of tribal and federal law enforcement, we are turning the tide against it. Our office is pleased with today’s verdicts, and hope these convictions are the next step toward justice for the victims’ families and the community.”
J. Chris Warrener, the Special Agent in Charge of the Federal Bureau of Investigation’s Minneapolis Field Office, added, “These convictions highlight both the cooperative efforts of the law enforcement agencies involved and the steadfast commitment of these agencies to the safety of the citizens of Red Lake.”
The trial evidence proved that on January 1, 2011, Craig David Roy and Darla Ann Beaulieu were killed while money and illegal drugs were stolen from Roy’s reservation residence. The bodies of Beaulieu and Roy were found in the remains of the house, which was destroyed by fire on that same day. Autopsies determined that both victims were killed as a result of multiple stab wounds and not the fire itself.
On February 26, 2013, Kevin John Needham, age 21, also of Red Lake, pleaded guilty to one count of robbery. In his plea agreement, Needham admitted that he agreed to travel with Robinson, Stately, and the Martins to Roy’s residence, the intention being to take money and cocaine by force. Among other things, Needham admittedly stood in the driveway of the Roy residence during the robbery.
On November 15, 2012, Terin Rene Stately, age 25, also of Red Lake, pleaded guilty to one count of aiding and abetting robbery. In her plea agreement, Stately admitted driving the group to and from the Roy residence and waiting in the vehicle during the robbery. She also admittedly knew of the plan to rob Roy.
For their crimes, Robinson and Geshik-O-Binese Martin face potential maximum penalties of life in federal prison. They, and David Martin face a potential maximum penalty of 15 years in federal prison for robbery. Because the federal criminal justice system does not have parole, convicted offenders spend virtually their entire prison sentences behind bars. U.S. District Court Judge Donovan W. Frank will determine their actual sentences at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Federal Bureau of Investigation and the Red Lake Tribal Police Department, with assistance from the Minnesota Bureau of Criminal Apprehension and the State Fire Marshal. It is being prosecuted by Assistant U.S. Attorneys Deidre Y. Aanstad and Nathan P. Petterson.
Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.Erie Man Sentenced to 14 Years in Prison for Drug SalesRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 14 years in jail on his conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Sean J. McLaughlin imposed the sentence on Shantell Lamont Jones, 40.
According to information presented to the court, Jones distributed approximately 2 ounces of powder cocaine on February 17, 2012 and distributed approximately 1 ounce of powder cocaine on March 8, 2012.
Prior to imposing sentence, Judge McLaughlin determined that Jones was a career offender and commented on Jones' long criminal history which included crimes with firearms and drugs.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the EAGLE task force, which is comprised of members of the Federal Bureau of Investigation, the Pennsylvania State Police, the Erie Police Department, and the Pennsylvania Office of Attorney General Bureau of Narcotics Investigation for the investigation leading to the successful prosecution of Jones.
District Man Found Guilty of Posing as Government Employee and Stealing Car from 87-Year-Old Woman-Defendant Took Keys from Victim, Then Sold Her Car for Scrap Metal-Read the Press Release
WASHINGTON - Thomas Williams, 43, of Washington, D.C., was found guilty by a jury today of stealing a car from an 87-year-old woman after pretending to be a public officer of the District of Columbia, U.S. Attorney Ronald C. Machen Jr. announced.
Williams was found guilty of four charges following a three-day trial in the Superior Court of the District of Columbia. They included second-degree theft of a senior citizen, unauthorized use of a motor vehicle, false impersonation of a public official, and failure to appear. The Honorable Stuart G. Nash scheduled sentencing for May 24, 2013.
According to the government’s evidence, on Aug. 16, 2012, Williams flagged down a tow truck driver and asked him if he was available to tow a car to a junkyard in Maryland. The tow truck driver agreed and the two men drove that morning to the home of the victim, who lives alone in Northeast Washington. Williams knocked on the front door, flashed an identification card, and told the victim that he was from the District of Columbia government and had orders to take her car, a 1996 Ford Contour that was parked in the driveway. She begged and pleaded with Williams not to take her car, saying that she was going to give it to one of her granddaughters.
Williams, however, insisted that he had to take the car and threatened to charge the victim if she did not comply. He took the keys out of her hand, hooked the car to the tow truck, and drove it to a junkyard in Maryland, where he sold the vehicle for scrap metal.
An officer with the Metropolitan Police Department (MPD) followed up on the victim’s report by checking on the car’s vehicle identification number and finding that the vehicle had been scrapped at the junkyard. The officer then went to the junkyard, reviewed the paperwork, and linked Williams to the vehicle and the crime.
Following his arrest, Williams was released by a Superior Court judge and ordered to return on a subsequent date. He did not return on that date and was eventually apprehended by the Capitol Area Regional Fugitive Task Force.
In announcing the verdict, U.S. Machen praised those who worked on the case from the MPD, the U.S. Marshals Service and its Superior Court Warrant Squad, and the Capitol Area Regional Fugitive Task Force. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Theresa Nelson, Litigation Services Specialist Thomas Royal, and Victim Advocate Kristina Rose. Finally, he commended the work of Assistant U.S. Attorney Peter Lallas, who investigated and prosecuted the case.
13-095District Man Found Guilty of Murder and Other Charges in 2011 Slaying in Northeast Washington-Defendant Waited for Victim, Then Shot Him in an Alley in Broad Daylight-Read the Press Release
WASHINGTON - Terry Johnson, 23, of Washington, D.C., has been found guilty by a jury of second-degree murder while armed and related weapons charges for a slaying that took place in 2011 in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced today.
Johnson was found guilty on March 8, 2013 following a trial in the Superior Court of the District of Columbia. He is to be sentenced on May 8, 2013 by the Honorable Herbert B. Dixon, Jr. Johnson, who has previous felony convictions, faces enhanced penalties that could lead to a life prison sentence for these crimes.
According to the government’s evidence, the murder took place at about 11:45 a.m. on Oct. 26, 2011 in the 5200 block of Clay Street NE. Johnson had an ongoing feud with the victim, Andre Wiggins, 19, in which the two men on multiple occasions ambushed and fired gunshots at one another. The feud stemmed from Mr. Wiggins’s then current romantic relationship with Johnson’s ex-girlfriend.
On Oct. 26, 2011, Johnson was told that Mr. Wiggins followed one of Johnson’s children and the mother of that child (not the woman at the center of the feud) as they walked in the neighborhood. Johnson was infuriated upon hearing this and promised to “take care of it.” Johnson went to Mr. Wiggins’s neighborhood, positioned himself in an alley, and waited for his arrival. Upon seeing Mr. Wiggins, Johnson who was armed and wearing a mask, ran him down, firing multiple times and leaving Mr. Wiggins dead in the street.
During the trial, the government presented cell tower records, text messages, and other evidence linking Johnson to the murder. Among other things, the defendant threatened a jailhouse witness while en route to court in the final days of trial.
In announcing the verdicts, U.S. Attorney Machen praised those who worked on the case, including detectives and officers from the Metropolitan Police Department’s Homicide Unit and Sixth Police District. He also expressed appreciation to the FBI Special Agent who worked on the case as well as those who handled the case for the U.S. Attorney’s Office, including Litigation Technology Specialists Leif Hickling and Paul Howell; Victim Witness Security Specialist Katina Adams; Victim Advocate Tamara Ince; Paralegal Specialist Kendra Johnson, and Investigator Durand Odom. Finally he acknowledged the efforts of Assistant U.S. Attorneys Reagan Taylor and Michelle Bradford, who prosecuted the case.
13-092District Man Convicted of Assault with Intent to Kill While Armed and Other Charges in 2010 Shooting-Defendant Opened Fire on Victims During Robbery of Marijuana-Read the Press Release
WASHINGTON – Herbert Arrington, 26, of Washington, D.C., was found guilty by a jury today of assault with intent to kill while armed and other charges for his attempted execution of three men in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
The jury also found Arrington guilty of aggravated assault while armed, assault with a dangerous weapon, and possession of a firearm during a crime of violence. The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Ronna L. Beck scheduled sentencing for June 7, 2013.
According the government’s evidence, in the days before the shooting, Arrington had inquired about purchasing a large quantity of marijuana from one of the victims. On the evening of June 9, 2010, he met the three men inside a parked GMC Yukon in the 2100 block of 8th Street NW. After one of the victims provided the marijuana to Arrington, he pulled out a firearm and shot all three men at point-blank range. All of the victims suffered gunshot wounds, and two were seriously injured. Officers from the Metropolitan Police Department (MPD), who were working off duty at a nearby club, heard the shots and quickly rushed to the aid of the victims.
The victims, rushed to various hospitals, survived the attack. Arrington, who escaped with the marijuana, was arrested six days after the shootings.
In announcing the verdict, U.S. Attorney Machen commended the efforts of the detectives, officers, and crime scene technicians who investigated the case for the Metropolitan Police Department. He also acknowledged those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Kalisha Johnson-Clark and Information Technology Specialists Kimberly Smith and Thomas Royal. Finally, he commended the work of Assistant U.S. Attorney Christopher Kavanaugh, who led the investigation and obtained the indictment in the case, and Assistant U.S. Attorneys Nicholas W. Cannon and Jonathan I. Kravis who prosecuted the case at trial.
13-097Department of Justice Antitrust Division Statement on the <br /> Closing of Its Investigation of the T-Mobile / MetroPCS MergerRead the Press Release
WASHINGTON – The Department of Justice’s Antitrust Division issued the following statement today in connection with the closing of its investigation into the proposed transaction that would combine T-Mobile USA Inc. and MetroPCS Communications Inc.: After a thorough review of the proposed transaction, the Antitrust Division has determined that the combination of T-Mobile and MetroPCS is unlikely to harm consumers or substantially lessen competition and has closed its investigation.
In this transaction, T-Mobile–one of four nationwide providers of mobile wireless services–will merge with MetroPCS, a provider in only certain regions of the country. As the department alleged in its 2011 case challenging the proposed merger of AT&T Inc. and T-Mobile, many dimensions of competition in the mobile wireless industry take place at a national level, including plan pricing, device offerings and network technology. Like many local and regional providers, MetroPCS faces limitations, stemming from its lack of nationwide spectrum, networks and scale, and therefore exerts little influence on these aspects of mobile wireless competition.
The department considered whether the proposed combination of T-Mobile and MetroPCS might tend to lessen competition substantially in any particular local area, for instance by combining the two carriers with the best local coverage. MetroPCS has a network based on high frequency spectrum (i.e. advanced wireless services (AWS) and personal communications services (PCS) spectrum) that is less able to cover rural areas or penetrate buildings. It does not provide a particularly unique and competitively significant differentiated offering in the regions in which it operates. Each of the markets served by MetroPCS is also served by all four national carriers. Accordingly, the transaction is not likely to lessen competition substantially at local levels.
Finally, the proposed combination of T-Mobile and MetroPCS may have a procompetitive impact in that it improves T-Mobile’s scale and spectrum position, particularly since MetroPCS’s spectrum holdings are compatible with T-Mobile’s existing network.The department said that it will continue to monitor competition in the mobile wireless industry and to bring enforcement actions where warranted.
T-Mobile is a Delaware corporation headquartered in Bellevue, Wash. T-Mobile is the fourth-largest mobile wireless telecommunications services provider in the United States as measured by subscribers, and serves approximately 33.3 million wireless connections to wireless devices. In 2012, T-Mobile earned mobile wireless telecommunications services revenues of approximately $17.2 billion. T-Mobile is a wholly-owned subsidiary of Deutsche Telekom AG.
Deutsche Telekom AG is a German corporation headquartered in Bonn, Germany. It is the largest telecommunications operator in Europe with wireline and wireless interests in numerous countries and total annual revenues in 2011 of €58.7 billion.
MetroPCS is a Delaware corporation headquartered in Richardson, Texas. It is the fifth-largest mobile wireless telecommunications provider in the United States as measured by subscribers, and serves approximately 8.9 million customers. In 2011, MetroPCS earned mobile wireless telecommunications services revenues of $4.8 billion.
The division provides this statement under its policy of issuing statements concerning the closing of investigations in appropriate cases. This statement is limited by the division’s obligation to protect the confidentiality of certain information obtained in its investigations. As in most of its investigations, the division’s evaluation has been highly fact-specific, and many of the relevant underlying facts are not public. Consequently, readers should not draw overly broad conclusions regarding how the division is likely in the future to analyze other collaborations or activities, or transactions involving particular firms. Enforcement decisions are made on a case-by-case basis, and the analysis and conclusions discussed in this statement do not bind the division in any future enforcement actions. Guidance on the division’s policy regarding closing statements is available at: www.usdoj.gov/atr/public/guidelines/201888.htm.Delaware Man Charged with Passing and Possessing Counterfeit CurrencyRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a federal grand jury has returned an indictment charging Shakeel Jeffcoat, age 28, of Wilmington, Delaware, with one count of passing counterfeit currency and one count of possessing counterfeit currency.
The indictment charges that on February 5, 2013, Shakeel Jeffcoat passed counterfeit $100 United States federal reserve notes and possessed counterfeit $100 United States federal reserve notes.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to the case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being presented by Assistant United States Attorney Gregory C. Sassé after an investigation by the United States Secret Service.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Defendants Sentenced in Human Trafficking CaseRead the Press Release
Tulsa, Oklahoma - United States Attorney Danny C. Williams, Sr., announced today that six people were sentenced Monday and Tuesday following their guilty pleas to human-trafficking-related charges, including sex trafficking by force, fraud and coercion, and coercion and enticement to travel in interstate commerce to engage in prostitution.
The case, dubbed “Operation Poker Chip,” was investigated starting in January 2012, by the following law enforcement agencies: U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the FBI, the Internal Revenue Service’s Criminal Investigation (IRS-CI), and the Tulsa County Sheriff’s Office (TCSO).
Following are the sentences that were handed down over two days by U.S. District Judge James H. Payne:
- Juan Rosales Garza, aka “Fernando,” pled guilty March 28, 2012, was sentenced Monday to a term of imprisonment for 135 months; to pay restitution of $18,340 and $3,780 to pay jointly and severally with his co-defendants and $100 special monetary assessment.
- Sermaias Samuel Sanchez Ajin, pled guilty March 28, 2012, was sentenced Monday to time served (approximately 13 months); $3,780 restitution to pay jointly and severally with his co-defendant’s and $100 special monetary assessment.
- Antonio Felix Velasquez-Lopez, aka “Tony,” pled guilty April 24, 2012, was sentenced Monday to a term of imprisonment for 87 months; $1,530 restitution and $100 special monetary assessment.
- Israel Velasquez-Ramirez, aka “Marcos,” pled guilty April 11, 2012, sentencedTuesday to a term of imprisonment for 18 months; $420 restitution and $100 special monetary assessment.
- Piedad Garcia, pled guilty August 7, 2012, was sentenced Tuesday to a term of imprisonment for 24 months; $6,580 restitution; $200,000 money judgment and $100 special monetary assessment.
- Gloria N. Giammalva, aka “Diana,” pled guilty August 8, 2012, was sentenced Tuesday to a term of imprisonment for 21 months; $18,340 restitution jointly and $3,780 jointly with other co-defendant’s and a $100 special monetary assessment.
A seventh defendant, Ignacio Ijom-Brito, also pled guilty to the charges and was sentenced in December 2012, to 14 months in federal prison. There is no parole in the federal prison system.
In addition to the above prison sentences, Juan Rosales-Garza and Piedad Currea-Garcia will forfeit to the United States any property, real or personal, derived from proceeds obtained during the sex trafficking conspiracy.
The operation derives its name from poker chips that were given to the customers who paid a “caretaker” to have sex with a sex trafficking victim. The customer then turned in the poker chip to the victim. The sex traffickers or “caretakers” collected the poker chips at the end of the day to keep track of how many clients they had.
The first victim in this case was smuggled into the United States from Mexico more than eight years ago. After arriving in Atlanta, Ga., she was beaten, threatened and forced into prostitution. The victim was trafficked to at least 10 other states over a period of several years. The constant movement is a common tactic of human traffickers to maximize profits and minimize the chances of being caught by law enforcement.
Despite beatings, injuries and threats to her with a gun, the victim eventually escaped her traffickers with her son. For his safety, she sent her son to live with his father’s parents in Mexico. While living in Houston, she was recognized by a trafficker and forced back into prostitution. The victim was subjected to harsh verbal and physical abuse, and was injected with drugs.
On Jan. 10, 2012, she was able to contact a law enforcement officer in Atlanta while she was in Houston. HSI special agents in Houston were notified. However, she was moved to Tulsa in January 2012. But she was still able to text her movements to HSI special agents. The victim was pregnant and in poor health due to the abuse she was suffering at the hands of her traffickers.
Although the victim was never told where she was staying or allowed to go outside, she was able determine her latest Tulsa address from a local pizza flyer mailed to the apartment. HSI special agents further confirmed her location by signal when the victim placed a black high-heeled shoe on the window sill of the apartment. HSI task force officers, who are Tulsa County Sheriff’s Office (TCSO) deputies, obtained the state search warrant to search the apartment.
On Jan. 19, 2012, HSI special agents and TCSO task force officers executed the search warrant, rescued the victim, and arrested Ignacio Ijom-Brito and Antonio Velasquez-Lopez for sex trafficking. The victim was taken to a hospital and admitted for medical issues. HSI and FBI Victim Witness Coordinators assisted, and continue to assist, the victim. Ijom-Brito and Velasquez-Lopez were federally indicted in February 2012.
On Jan. 25, 2012, HSI Tulsa special agents and TCSO task force officers executed search warrants that resulted in the arrest of Israel Velasquez-Ramirez, who was arrested and later charged with sex trafficking.
On Feb. 23, 2012, HSI and FBI special agents located and arrested Sermaias Sanchez-Ajin at an apartment in Tulsa. Sanchez-Ajin had managed to evade federal authorities for nearly a month, having left a former brothel location only hours before HSI special agents executed a search warrant on Jan. 26, 2012.
As a result of the search warrants, information was developed regarding additional brothel locations in Oklahoma City and Kansas City. Another victim was located by HSI special agents in Oklahoma City on Jan. 26, 2012. When she told her caretakers that she wanted to return to Houston, she was told that she could not leave. She identified photos of Velasquez-Ramirez and Sanchez-Ajin as the caretakers of the two locations she had worked performing sex acts in Tulsa.
HSI, FBI, and IRS-CI special agents, with assistance from TCSO, conducted an extensive investigation of the sex trafficking organization. The investigation revealed that the organization was responsible for coordinating the movement of both sex trafficking victims and willing prostitutes to locations in multiple states.
IRS-CI special agents and the U.S. Attorney’s Office’s financial analyst assisted with an extensive financial investigation and traced the flow of illicit funds from brothel locations in several states to the organization’s leaders.
Investigators identified Juan Rosales-Garza and Gloria Giammalva, a married couple, as leaders of the sex trafficking organization that was operating in Oklahoma, Kansas, Missouri and Tennessee. Investigators also identified Piedad Currea-Garcia as a leader within the organization that operated sex trafficking ventures in Oklahoma, Kansas and Missouri.
Currea-Garcia, Rosales-Garza and Giammalva, along with Velasquez Ramirez and Sanchez-Ajin, were all indicted in the Northern District of Oklahoma in a series of four superseding indictments for sex trafficking and conspiracy charges.
In April 2012, Rosales-Garza and Currea-Garcia were both located and arrested by HSI special agents in Kansas City pursuant to federal arrest warrants following the execution of a federal search warrant in Kansas City, Mo.
On April 26, 2012, Gloria Giammalva was arrested outside the U.S. Magistrate Courtroom in Tulsa when she arrived for Rosales-Garza’s detention hearing.
Defendants Sentenced in Human Trafficking CaseRead the Press Release
Tulsa, Oklahoma - United States Attorney Danny C. Williams, Sr., announced today that six people were sentenced Monday and Tuesday following their guilty pleas to human-trafficking-related charges, including sex trafficking by force, fraud and coercion, and coercion and enticement to travel in interstate commerce to engage in prostitution.
The case, dubbed “Operation Poker Chip,” was investigated starting in January 2012, by the following law enforcement agencies: U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the FBI, the Internal Revenue Service’s Criminal Investigation (IRS-CI), and the Tulsa County Sheriff’s Office (TCSO).
Following are the sentences that were handed down over two days by U.S. District Judge James H. Payne:- Juan Rosales Garza, aka “Fernando,” pled guilty March 28, 2012, was sentenced Monday to a term of imprisonment for 135 months; to pay restitution of $18,340 and $3,780 to pay jointly and severally with his co-defendants and $100 special monetary assessment.
- Sermaias Samuel Sanchez Ajin, pled guilty March 28, 2012, was sentenced Monday to time served (approximately 13 months); $3,780 restitution to pay jointly and severally with his co-defendant’s and $100 special monetary assessment.
- Antonio Felix Velasquez-Lopez, aka “Tony,” pled guilty April 24, 2012, was sentenced Monday to a term of imprisonment for 87 months; $1,530 restitution and $100 special monetary assessment.
- Israel Velasquez-Ramirez, aka “Marcos,” pled guilty April 11, 2012, sentenced Tuesday to a term of imprisonment for 18 months; $420 restitution and $100 special monetary assessment.
- Piedad Garcia, pled guilty August 7, 2012, was sentenced Tuesday to a term of imprisonment for 24 months; $6,580 restitution; $200,000 money judgment and $100 special monetary assessment.
- Gloria N. Giammalva, aka “Diana,” pled guilty August 8, 2012, was sentenced Tuesday to a term of imprisonment for 21 months; $18,340 restitution jointly and $3,780 jointly with other co-defendant’s and a $100 special monetary assessment.
A seventh defendant, Ignacio Ijom-Brito, also pled guilty to the charges and was sentenced in December 2012, to 14 months in federal prison. There is no parole in the federal prison system.
In addition to the above prison sentences, Juan Rosales-Garza and Piedad Currea-Garcia will forfeit to the United States any property, real or personal, derived from proceeds obtained during the sex trafficking conspiracy.
The operation derives its name from poker chips that were given to the customers who paid a “caretaker” to have sex with a sex trafficking victim. The customer then turned in the poker chip to the victim. The sex traffickers or “caretakers” collected the poker chips at the end of the day to keep track of how many clients they had.
The first victim in this case was smuggled into the United States from Mexico more than eight years ago. After arriving in Atlanta, Ga., she was beaten, threatened and forced into prostitution. The victim was trafficked to at least 10 other states over a period of several years. The constant movement is a common tactic of human traffickers to maximize profits and minimize the chances of being caught by law enforcement.
Despite beatings, injuries and threats to her with a gun, the victim eventually escaped her traffickers with her son. For his safety, she sent her son to live with his father’s parents in Mexico. While living in Houston, she was recognized by a trafficker and forced back into prostitution. The victim was subjected to harsh verbal and physical abuse, and was injected with drugs.
On Jan. 10, 2012, she was able to contact a law enforcement officer in Atlanta while she was in Houston. HSI special agents in Houston were notified. However, she was moved to Tulsa in January 2012. But she was still able to text her movements to HSI special agents. The victim was pregnant and in poor health due to the abuse she was suffering at the hands of her traffickers.
Although the victim was never told where she was staying or allowed to go outside, she was able determine her latest Tulsa address from a local pizza flyer mailed to the apartment. HSI special agents further confirmed her location by signal when the victim placed a black high-heeled shoe on the window sill of the apartment. HSI task force officers, who are Tulsa County Sheriff’s Office (TCSO) deputies, obtained the state search warrant to search the apartment.
On Jan. 19, 2012, HSI special agents and TCSO task force officers executed the search warrant, rescued the victim, and arrested Ignacio Ijom-Brito and Antonio Velasquez-Lopez for sex trafficking. The victim was taken to a hospital and admitted for medical issues. HSI and FBI Victim Witness Coordinators assisted, and continue to assist, the victim. Ijom-Brito and Velasquez-Lopez were federally indicted in February 2012.
On Jan. 25, 2012, HSI Tulsa special agents and TCSO task force officers executed search warrants that resulted in the arrest of Israel Velasquez-Ramirez, who was arrested and later charged with sex trafficking.On Feb. 23, 2012, HSI and FBI special agents located and arrested Sermaias Sanchez-Ajin at an apartment in Tulsa. Sanchez-Ajin had managed to evade federal authorities for nearly a month, having left a former brothel location only hours before HSI special agents executed a search warrant on Jan. 26, 2012.
As a result of the search warrants, information was developed regarding additional brothel locations in Oklahoma City and Kansas City. Another victim was located by HSI special agents in Oklahoma City on Jan. 26, 2012. When she told her caretakers that she wanted to return to Houston, she was told that she could not leave. She identified photos of Velasquez-Ramirez and Sanchez-Ajin as the caretakers of the two locations she had worked performing sex acts in Tulsa.HSI, FBI, and IRS-CI special agents, with assistance from TCSO, conducted an extensive investigation of the sex trafficking organization. The investigation revealed that the organization was responsible for coordinating the movement of both sex trafficking victims and willing prostitutes to locations in multiple states.
IRS-CI special agents and the U.S. Attorney’s Office’s financial analyst assisted with an extensive financial investigation and traced the flow of illicit funds from brothel locations in several states to the organization’s leaders.
Investigators identified Juan Rosales-Garza and Gloria Giammalva, a married couple, as leaders of the sex trafficking organization that was operating in Oklahoma, Kansas, Missouri and Tennessee. Investigators also identified Piedad Currea-Garcia as a leader within the organization that operated sex trafficking ventures in Oklahoma, Kansas and Missouri.
Currea-Garcia, Rosales-Garza and Giammalva, along with Velasquez Ramirez and Sanchez-Ajin, were all indicted in the Northern District of Oklahoma in a series of four superseding indictments for sex trafficking and conspiracy charges.
In April 2012, Rosales-Garza and Currea-Garcia were both located and arrested by HSI special agents in Kansas City pursuant to federal arrest warrants following the execution of a federal search warrant in Kansas City, Mo.
On April 26, 2012, Gloria Giammalva was arrested outside the U.S. Magistrate Courtroom in Tulsa when she arrived for Rosales-Garza’s detention hearing.Defendants in Aryan Knights Investigation Plead Guilty to Conspiring to Distribute MethRead the Press Release
BOISE – Jesse Ray Delgado, 47, of Boise, Idaho, and Dennis James, 47, of San Pablo, California, pleaded guilty today in United States District Court to conspiring to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. The defendants were charged in two separate cases.
At today’s hearing, Delgado admitted that he entered into a conspiracy with other individuals to distribute methamphetamine. Delgado acknowledged that he would purchase methamphetamine and then distribute it in the Boise area. On February 16, 2012, he sold approximately one-half ounce of methamphetamine to a confidential informant. On March 14, 2012, law enforcement agents served a search warrant on Delgado’s residence and recovered over three ounces of methamphetamine. Delgado faces an enhanced sentence because of his prior conviction for possession of controlled substances in 2001.
The charge of conspiracy to distribute methamphetamine, as enhanced, is punishable by up to life in prison, a maximum fine of $20 million, and a minimum term of ten years of supervised release. Delgado is scheduled to be sentenced on June 4, 2013, by U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
James, who also pleaded guilty to conspiring to distribute methamphetamine, admitted that on June 13, 2012, he and a co-defendant sold approximately one-quarter ounce of methamphetamine to a confidential informant. The following day, on June 14, 2012, James and the co-defendant again sold approximately one-quarter ounce of methamphetamine to the same individual. James faces an enhanced sentence because he was previously convicted of possession of a controlled substance in 2006.
James faces up to life in prison, a maximum fine of $8 million, and a minimum term of eight years of supervised release. He is scheduled to be sentenced on June 3, 2013, by U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
James’ co-defendant, Nicholas Andrew Steele, pleaded guilty on December 21, 2012, to distribution of methamphetamine. Sentencing is set for March 25.
Delgado, James and Steele are three of the 23 people charged as a result of a long-term investigation by the Treasure Valley Metro Violent Crimes Task Force. The investigation began when the task force focused on illegal drug distribution by the “Aryan Knights,” a gang active in prison and on the streets throughout Idaho. Through the investigation, law enforcement agents identified Aryan Knights gang members who were trafficking methamphetamine, as well as associates of the gang who were the source of that methamphetamine.
The Treasure Valley Metro Violent Crimes Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Boise Police Department, Ada County Sheriff’s Office, Caldwell Police Department, Nampa Police Department, Meridian Police Department, Canyon County Sheriff’s Office, and the Idaho Department of Correction. The Organized Crime and Drug Enforcement Task Force (OCDETF) also contributed to the investigation, which included the cooperative law enforcement efforts of the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service.
Crete Resident Sentenced for Role in Tax Return SchemeRead the Press Release
United States Attorney Deborah R. Gilg announced that Jose Feliciano Alvarado-Montoya, 42, of Crete, Nebraska, was sentenced on March 12, 2013, in Lincoln, Nebraska, for his role in a conspiracy to obtain payment of fraudulently obtained federal tax refund checks. Alvarado-Montoya was sentenced to time served by United States Senior District Judge Richard G. Kopf. The sentence includes a three-year term of supervised release, and restitution of $4,250 to be paid to the United States.
Alvarado-Montoya was indicted by a federal grand jury in September 2012 in connection with a fraudulent tax refund scheme. Alvarado-Montoya conspired to cash tax refund checks and to obtain payment from the United States knowing the tax refund checks were fraudulently obtained. Alvarado-Montoya, along with his co-defendant, obtained tax refund checks in the names of various individuals, all with North Carolina addresses. Alvarado-Montoya allegedly knew the refund checks were from fraudulent income tax returns filed with the Internal Revenue Service, the returns having been filed using the names of individuals who were not residing in the United States and were not entitled to receive tax refund checks.
On two occasions, Alvarado-Montoya and his co-defendant went to a store in Lincoln, Nebraska, for the purpose of cashing the tax refund checks. They provided copies of passports and identification numbers matching the names on the checks and falsely stated they were cashing the checks for family members. In addition, they offered to pay a 15% fee to cash the refund checks when the normal fee was no more than 3%. Alvarado-Montoya received and attempted to receive payments from United States Treasury Checks totaling $29,088.93.
“IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. "Protecting taxpayer dollars is a matter we take very seriously.”
This case was investigated by IRS Criminal Investigation.
Court Bars South Florida Tax Return Preparersfrom Preparing Returns for OthersRead the Press Release
A federal district judge in Miami permanently barred Marlen Monzon, her son Yanko Rodriguez, and their Miami business, Tri Stars Multiservices Corporation, from preparing federal income tax returns for others, the Justice Department announced today.
According to the government’s complaint, Monzon and Rodriguez prepared federal income tax returns in Miami through Tri Stars Multiservices, Corporation. As alleged, the returns prepared by Monzon and Rodriguez included fabricated claims for business expenses on customers’ returns even when the customers did not own or operate a business. The complaint further alleged that these fabricated expenses offset the customer’s wage income and improperly lowered the customer’s reported taxable income. These fabricated expenses generated (or increased) customers’ refunds, and often qualified customers for credits to which they were not entitled. The complaint alleged that nearly every one of the 498 returns that the Internal Revenue Service (IRS) examined for tax years 2008 through 2011 claimed that the customer operated a business and reported a business loss. According to the complaint, the IRS has determined that the U.S. Treasury lost more than $3.4 million in revenue as a result of Monzon and Rodriguez’s misconduct.
Monzon, Rodriguez and Tri Stars consented to the entry of the injunction.
In the past 10 years the Justice Department’s Tax Division has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters. Information about these cases is available on the Justice Department Website .
Related Materials:
United States v. Thomas G. Bandzul
Permanent Injunction (PDF)Columbus Man Pleads Guilty to Federal Crack Cocaine ChargeRead the Press Release
HUNTINGTON, W.Va. – U.S. Attorney Booth Goodwin today announced that a Columbus man pleaded guilty in federal court to distribution of 28 grams or more of crack cocaine. Tyree Antonio Spraggins, 25, admitted that on October 27, 2010, he stopped by the Smokin’ Aces store that was located in Huntington and sold 44.3 grams crack cocaine to an undercover agent working for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in exchange for $2,600.
Spraggins further admitted that he sold a total of 142.8 grams of crack cocaine to undercover agents at the Smokin’ Aces store.
Spraggins faces up to 40 years in prison and a $5 million fine when he is sentenced on June 10, 2013 by Chief United States District Judge Robert C. Chambers.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Police Department. Assistant United States Attorney Gregory McVey is in charge of the prosecution.
This case was prosecuted as part of a yearlong undercover operation that targeted illegal drugs and firearms crimes in the Huntington area. The operation was led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and assisted by the U.S. Attorney’s Office, the Huntington Police Department, and various other law enforcement agencies. It was announced to the public in March 2011 after a grand jury returned indictments against 55 defendants.
Cincinnati Man Sentenced to 180 Months in Prison as Armed Career CriminalRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Landon Price, 36, of Cincinnati was sentenced in U.S .District Court to 180 months in prison for illegal possession of a firearm and after the court designated him an armed career criminal due to his criminal history.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation Cincinnati Field Office (FBI), and Chillicothe, Ohio Police Chief Roger Moore announced the sentence imposed today by Senior U.S. District Judge Sandra S. Beckwith.
According to court documents, Chillicothe Police officers were looking for Price for outstanding South Carolina state warrants, found him hiding in the attic of a residence on December 13, 2011 and arrested him. Officers searched him and found nine rounds of ammunition. A search of the residence led to the recovery of a .22-caliber pistol and approximately 65 more rounds of ammunition.
A federal grand jury indicted Price on February 12, 2012 charging him with being a felon in possession of a firearm. Price pleaded guilty on July 24, 2012.
The court determined that Price qualified as an Armed Career Criminal because of a history of crimes including assault and burglary dating back to 1996.
U.S. Attorney Stewart commended the cooperative investigation by the FBI and Chillicothe Police as well as Cincinnati Branch Chief Anthony Springer and Special Assistant U.S. Attorney Gregory Stephens with Butler County Prosecutor Michael T. Gmoser’s office who represented the United States in the case.