Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
8 March 2013
Charlottesville Woman Sentenced on Synthetic Drug ChargesRead the Press Release
CHARLOTTESVILLE, VIRGINIA -- A local woman, who pled guilty in April 2012 to synthetic drug distribution charges, was sentenced this afternoon in the United States District Court for the Western District of Virginia in Charlottesville.
Lois Lee McDaniel, of Charlottesville, Va., previously pled guilty to one count of conspiracy to possess with the intent to distribute and to distribute controlled substance analogues 3,4-Methylenedioxymethcathinone (MDMC), 3,4-Methylenedioxypyrovalerone (MDPV), and 4-Mehtyl-ethylcathinone(4-MEC), commonly referred to as bath salts. Bath salts are mixtures of many different chemicals, including those that resemble cocaine, methamphetamine, and ecstasy.
This afternoon in District Court, McDaniel was sentenced to 28 months in federal prison, three years of supervised release thereafter and a fine of $1,000.
“The abuse of bath salts, especially among young people, is on the increase in Central Virginia. These substances are highly addictive and extremely dangerous. They are also often illegal, as demonstrated by the prosecution of Ms. McDaniel,” United States Attorney Timothy J. Heaphy said today. “The Department of Justice will continue to work with both law enforcement and the health care community to raise awareness of the dangers presented by these bath salt compounds. We must attack this problem with both strong enforcement and education about the dangers posed by this emerging threat.”
McDaniel, the former owner of the C-Ville Video Store, previously admitted that she, and others at the store, sold bath salts from behind the counter. McDaniel bought her MDMC, MDPV and 4-MEC from a source in New York.
In all, McDaniel admitted to distributing more than 200 grams of bath salts between April 2011 and August 2011. The defendant also admitted that she knew individuals were using the bath salts to get high and that she should not have been selling them to customers. C-Ville Video Store became so widely known for distributing bath salts that there was often a line of bath salt users waiting in line outside the store prior to its opening in the morning.
The investigation of the case was conducted by Jefferson Area Drug Task Force and the Drug Enforcement Administration. Assistant United States Attorney Ron Huber and Special Assistant United States Attorney Joseph Platania prosecuted the case for the United States.Bethel Man pleads guilty and is sentenced for illegally using imitation of official seal of U.S. Fish and Wildlife ServiceRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Bethel man pled guilty and was sentenced in federal court in Anchorage for illegally making and printing an imitation official insignia of the United States Fish & Wildlife Service.
On March 8, 2013, John Jens Owens, 50, of Bethel, Alaska, was sentenced by United States Magistrate Court Judge Deborah Smith. The court ordered Owens to pay a fine of $500, was placed on one year probation, and was ordered to make and print an announcement in the Delta Discovery and Tundra Drums acknowledging his wrongdoing.
Owens’ plea agreement included the facts he admitted to in support of the charges: In May 2010, Owens read an article in the Delta Discovery paper written by a Fish & Wildlife Service refuge officer for the Yukon Delta National Wildlife Refuge. The next day, Owens copied the official seal of the Department of the Interior United States Fish & Wildlife Service from the U.S. Fish & Wildlife Service website. After Owens made the imitation of the official seal, he affixed it, without permission, as letterhead to a letter he drafted.
Owens drafted the letter in order to make it appear that it was written by and came from the U.S. Fish & Wildlife Service, Office of Law Enforcement in the Yukon Delta National Wildlife Refuge. Owens disseminated false information in the letter. None of the representations in the letter originated or were approved by the U.S. Fish & Wildlife Service. Owens then printed the false letter and mailed it to numerous villages in and around the Yukon Delta National Wildlife Refuge. Owens printed and mailed this fraudulent letter, on official-looking letterhead, in order to get people angry at the U.S. Fish & Wildlife Service.
Yukon Delta National Wildlife Refuge Management personnel were pleased to see resolution to this case, and said they make it a priority to maintain the integrity of information delivered to the public, including information regarding waterfowl management regulations.
Ms. Loeffler commended the United States Fish & Wildlife Service for the investigation that led to the successful prosecution of Owens.
Autauga County Man Sentenced to 60 Months for $6.2 Million TheftRead the Press Release
Ricky Nelson Dawson, a U.S. Department of Agriculture Employee, Converted Checks Payable to the Government
Montgomery, Alabama - Ricky Nelson Dawson, age 54, of Autauga County, was sentenced today by United States District Judge Myron H. Thompson to a prison term of 60 months based on his conviction for wire fraud arising out of his theft of approximately $6.2 million in checks payable to the federal government, U.S. Attorney George L. Beck, Jr., announced today.
According to court records, Dawson, a United States Department of Agriculture (“USDA”) employee, had served since 2000 as director of the Bay Minette and Camden offices of USDA’s Rural Development programs. One of those programs was the Rural Utilities Service, which provided loans and grants to local water authorities and electric utilities (the “Authorities”).
Between March 2007 and May 2012, Dawson received checks—all payable to “Rural Development” or a variation thereof—from various Authorities representing funds intended as payment to USDA. Dawson embezzled the checks by depositing them into an account in the name “Ryal Development Farm” that he had opened at First Community Bank, in Chatom. On some of the checks, Dawson hand wrote the letter “y” over the “ur” in “Rural” to make it appear as if “Ryal” Development was the payee of the checks. The following chart summarizes Dawson’s activities:
Date Deposited
Amount ($)
Payor
March 22, 2007
149,838.29
East Central Baldwin County
28,000
Hobson Water System
April 4, 2008
106,246.29
Mexia Water System
November 3, 2008
24,841.77
Mexia Water System
December 8, 2008
21,464.60
Town of Autaugaville
February 18, 2009
75,000
St. Stephens Water System
August 21, 2009
400,000
Southern Pine Electric Cooperative
January 4, 2010
5,000
Freemanville Water System
January 22, 2010
35,000
Freemanville Water System
April 21, 2010
90,000
Freemanville Water System
September 28, 2010
70,000
Freemanville Water System
November 22, 2010
500,000
Perry County Water Authority
March 1, 2011
190,534
East Central Baldwin County
April 14, 2011
995,000
Perry County Water Authority
July 1, 2011
779,263.73
Autauga County Water Authority
December 9, 2011
799,172.79
West Dallas Water Authority
April 18, 2012
999,000
City of Thomasville Water Works and Sewer Board
May 4, 2012
957,559.29
City of Thomasville Water Works and Sewer Board
TOTAL
$6,225,920.76
After depositing the checks, Dawson transferred the funds into his accounts at Regions Bank and E*TRADE Securities. He also used the funds from later thefts to make payments (a) to Authorities that were the payors of checks Dawson had previously converted, and (b) to USDA. The net amount taken by Dawson after the “repayments” came to approximately $3.8 million. A hearing to determine restitution will be scheduled within 90 days.
Dawson has been free on a $25,000 unsecured bond. He was ordered to report to prison on May 31, 2013.
The case was investigated by the FBI and by USDA’s Office of Inspector General and was prosecuted by Assistant U.S. Attorneys Andrew O. Schiff and Tommie B. Hardwick.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Alleged Top Lieutenant in Sinaloa Cartel IndictedRead the Press Release
ALEXANDRIA, Va. – A man the U.S. government has identified as a narcotics kingpin and top lieutenant in the Sinaloa Cartel has been indicted by a federal grand jury in Alexandria, Va.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Mythili Raman, Acting Assistant Attorney General for the Criminal Division; and Karl Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division Office, made the announcement after the indictment was unsealed.
Damaso Lopez Nunez, aka “El Licensiado,” 47, of Mexico, was indicted on Nov. 23, 2011, and accused of conspiring to distribute cocaine and conspiring to commit money laundering. He faces a maximum penalty of life imprisonment, if convicted. The indictment was unsealed on March 7, 2013.
On Jan. 9, 2013, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Lopez Nunez under the Foreign Narcotics Kingpin Designation Act, which prohibits U.S. persons from conducting financial or commercial transactions with the designated individual and freezes any assets they have under U.S. jurisdiction. According to OFAC, Lopez Nunez is a top lieutenant of Joaquin “Chapo” Guzman Loera of the Sinaloa Cartel. A chart of the Chapo Guzman organization can be viewed here: http://www.treasury.gov/resource-center/sanctions/Programs/Documents/20130109_sinaloa_operatives.pdf.
The indictment provides a forfeiture notice of $280 million representing the proceeds of the alleged offenses.
This ongoing investigation is being conducted by the DEA’s Washington Division Office and Mazatlan Resident Office.Assistant United States Attorney Daniel J. Grooms of the Eastern District of Virginia’s National Security and International Crime Unit and Trial Attorney Darrin L. McCullough of the Narcotic and Dangerous Drug Section of the Justice Department’s Criminal Division are prosecuting the case on behalf of the United States.Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Alabama Corrections Officer and Former Corrections Officer Indicted for Stolen Identity Tax Refund FraudRead the Press Release
A 29-count indictment was unsealed today in Montgomery, Ala., charging Bryant Thompson, an Alabama corrections officer, and Quincy Walton, a former Alabama corrections officer, with federal tax crimes, the Justice Department and the Internal Revenue Service (IRS) announced. Thompson and Walton are both charged with one count of conspiracy to defraud the United States; Thompson is additionally charged with 10 counts of wire fraud and 10 counts of aggravated identity theft, and Walton is additionally charged with four counts of theft of government money and four counts of aggravated identity theft.
According to the indictment, Thompson, a corrections officer at the Alabama Department of Corrections, unlawfully obtained the names and Social Security numbers of inmates in the custody of the state of Alabama and caused to be filed false tax returns in the names of those inmates. The IRS issued tax refund checks in the names of inmates whose identities Thompson unlawfully obtained and Walton cashed those checks.
An indictment is merely a formal charge by the grand jury. The defendants are presumed innocent unless and until proven guilty.
If convicted, Thompson and Walton face a maximum sentence of five years in federal prison for the conspiracy count, a maximum of 20 years for each wire fraud count, a maximum of 10 years for each theft of government money count and a minimum of two years for aggravated identity theft. In addition to prison time, Thompson and Walton also face the possibility of fines and restitution to the IRS and other victims.
The case was investigated by IRS Criminal Investigation and is being prosecuted by Trial Attorneys Alexander R. Effendi and Justin K. Gelfand of the Justice Department’s Tax Division.
Accountant Fined and Sentenced to ProbationRead the Press Release
ALBANY, N.Y. — Ronald L. Simons, 58, of Vestal, New York, was sentenced today to one year probation and ordered to pay a $5,000 fine by United States Magistrate Judge Christian F. Hummel, announced United States Attorney Richard S. Hartunian, Special-Agent-in-Charge Toni M. Weirauch of the Internal Revenue Service, Criminal Investigation, New York Field Office, and Andrew W. Vale, Special Agent-in-Charge, Federal Bureau of Investigation, Albany Division. The sentencing follows Simons’ November 8, 2011 guilty plea.
In October 2007, Simons, a certified public accountant and partner in the accounting firm of Piaker & Lyons in Binghamton, New York, submitted a false 2006 income tax return on behalf of David L. and Lynn A. Smith. David L. Smith is a former owner of the Albany broker-dealer McGinn, Smith & Co., Inc., and was convicted of conspiracy to commit mail and wire fraud, mail fraud, wire fraud, securities fraud, and filing false tax returns on February 6, 2013 following a fourweek jury trial.
The return, prepared and submitted to the Internal Revenue Service by Simons, did not report $407,000 in fees distributed to David L. Smith from TDM Funding LLC in 2006. Simons reclassified the $407,000 as loans despite knowing that the McGinn Smith controller initially booked the $407,000 as fees and that David L. Smith previously characterized the majority of the $407,000 as fees.
This case was investigated by the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorneys Elizabeth C. Coombe, Richard D. Belliss, and Wayne A. Myers.
LOCAL CONTACT: Elizabeth C. Coombe
Assistant U.S. Attorney
Tel: (518) 431-0247
7 March 2013
Winnebago Man Sentenced for Felony DUI ConvictionRead the Press Release
United States Attorney Deborah R. Gilg announced that Joseph C. Snowball, age 24 of Winnebago, was sentenced by Chief United States District Court Judge Laurie Smith Camp for his felony conviction of driving under the influence while having a minor child present in the vehicle. Snowball was sentenced to five years’ probation and was ordered to pay restitution in the amount of $188,621.25 for injuries suffered by the passengers in the vehicle he was driving. While on probation, Snowball will be required to perform 100 hours of community service. In addition, he will not be allowed to drive unless he has an ignition interlock device installed on his vehicle.
On May 11, 2012, Snowball was in a vehicle on the Winnebago Indian Reservation along with four other persons, including a five year old child. The adults in the vehicle had been drinking for an extended period of time. When the owner of the vehicle became too intoxicated to drive safely, Snowball took over even though he did not have a driver’s license and even though he was also intoxicated. Within minutes after taking over control of the car, Snowball lost control of the vehicle causing it to leave the roadway and crash into a tree. Snowball’s blood alcohol level was determined to be .234. All the passengers suffered injuries, although none were life-threatening.
Although this was Snowball’s first DUI offense, he was convicted of a felony because federal law makes driving under the influence while having a minor child present in the vehicle an offense punishable by an additional one year term of imprisonment over the standard penalties for a DUI conviction.
This case was investigated by the Bureau of Indian Affairs.
Wills Point Man Pleads Guilty to Possessing A Short Barrel ShotgunRead the Press Release
Department of Justice
Office of Public AffairsSearch warrant leads to a federal conviction
TYLER, Texas – A 36 year old Wills Point man has pleaded guilty to possessing a short barrel shotgun announced U.S. Attorney John M. Bales today.
Michael Jack Callaway pleaded guilty today in U.S. Magistrate Judith Guthrie’s court to the felony offense of possessing an unregistered short barrel shotgun. A federal grand jury indicted Callaway for the offense on November 7, 2012. Callaway admitted that on August 22, 2012, members of the Van Zandt County Drug Task Force found a short barrel shotgun among numerous rifles, pistols, and shotguns, as well as hundreds of rounds of ammunition, during the execution of a search warrant at his residence in Wills Point, Texas. Callaway must forfeit the seized weapons and ammunition to the United States Attorney’s Office.
Callaway is facing up to ten years in prison and a $250,000.00 fine. A sentencing hearing date has not been set.This case was investigated by the Van Zandt County Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Tyler Office and prosecuted by Assistant U.S. Attorney Jim Noble.
William Jesus Brandel-mena Pleads Guilty to Illegal Re-entryRead the Press Release
WILLIAM JESUS BRANDEL-MENA, age 34, a citizen of Honduras, pled guilty in federal court today before U. S. District Judge Susie Morgan to a one-count indictment charging him with illegal re-entry by a removed alien, announced U. S. Attorney Dana Boente.
According to court documents, BRANDEL admitted to being an alien who had previously been removed from the United States, was found in the United States, in Jefferson Parish, Louisiana on March 26, 2012, without having obtained consent from the Secretary of the Department of Homeland Security to reapply for admission to the United States.
The indictment charging BRANDEL with illegal re-entry also included a notice of sentencing enhancement based on his prior aggravated felony conviction. With the enhancement, the charge carries a maximum statutory penalty of twenty years imprisonment, a fine of $250,000, and three years of supervised release following any term of imprisonment. Sentencing for BRANDEL is scheduled for June 5, 2013 at 2:00 P.M.
The case was investigated as part of a United States Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE) national operation known as Operation Cross Check, which targeted fugitive aliens. ICE was assisted in this investigation by the Kenner Police Department. The case is being prosecuted by Special Assistant U. S. Attorney Robert Weir and Assistant U. S. Attorney Jon Maestri.
(Download Factual Basis )
West Tennessee Drug Round-Up Nets 11 on Federal Trafficking ViolationsRead the Press Release
Henderson, Decatur, Benton, and Madison counties following indictments for federal drug trafficking violations, announced U.S. Attorney Edward L. Stanton III.
The indictments were returned by a federal grand jury in Jackson on February 19, 2013, but remained under seal until today’s arrests. Each indictment contained counts alleging violations of the Controlled Substances Act (CSA).
The suspects arrested during the operation were: • Thomas Arnold, 46, of Benton County
• Jason Blackstock, 30, of Henderson County
• Monica Bruce, 37, of Benton County
• Jerry Evans, 69, of Decatur County
• Peggy Gullett, 46, of Henderson County
• Teresa McCoy, 43, of Decatur County
• James Nolen, 47, of Henderson County
• Billie Pearcy, 68, of Decatur County
• Karen Pepper, 37, of Madison County
• Bruce Rosson, 29, of Decatur County
• Freddy Webb, 51, of Henderson County
A twelfth suspect, Elizabeth Little, 47, of Decatur County, was out of state and is making arrangements to turn herself in to authorities. In addition to the arrests, law enforcement officials seized illicit narcotics, U.S. currency, and drug paraphernalia. At least 10 firearms were also seized, including handguns and long guns.
The charges in the indictments stem from the illegal activity of possessing and distributing methamphetamine. Each of the 12 suspects was charged with unlawfully and knowingly possessing with intent to distribute a mixture and substance containing a detectable amount of methamphetamine, a Schedule II controlled substance. This charge is punishable as follows:No Prior Felony Drug Trafficking Convictions o Up to 20 years imprisonment o A fine of up to $1,000,000 o Up to three years supervised release
# # # #
Prior Felony Drug Trafficking Convictions o Up to 30 years imprisonment o A fine of up to $2,000,000 o Up to six years supervised release
The case was investigated by the Bureau of Alcohol, Tobacco and Firearms; FBI Memphis, Jackson Resident Agency; Tennessee Bureau of Investigation; Tennessee Highway Patrol; Henderson County Sheriff’s Department; Lexington Police Department; and the 24th Judicial District Drug Task Force. The case is being prosecuted by Assistant United States Attorney Matt Wilson on behalf of the government.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Vanderbilt Woman Pleads Guilty to Defrauding Sprint CommunicationsRead the Press Release
PITTSBURGH, Pa. - A resident of Vanderbilt, Pa., pleaded guilty in federal court to a charge of mail fraud, United States Attorney David J. Hickton announced today.
Susan Rowan, 39, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Rowan defrauded Sprint Communications by impersonating a rodeo star. After receiving shipments of hundreds of cellular telephones under the pretense that they were for her fictitious company, she would use them for herself and provide them to members of her family.
Judge Cercone scheduled sentencing for July 2, 2013 at 10:30 a.m. The law provides for a total sentence of not more than 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Pending sentencing, the court continued Rowan on bond.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation that led to the prosecution of Rowan.
Two Women Plead Guilty to Fraud and Money Laundering Charges for Nevada Medicaid Fraud SchemeRead the Press Release
RENO, Nev. – Two women have pleaded guilty to federal health care fraud and money laundering charges for defrauding the Nevada Medicaid program of approximately $1 million, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Susan Hill, 65, of Las Vegas, and Cassandra Little, 48, of Reno, pleaded guilty on Wednesday, March 6, 2013, before U.S. District Judge Howard D. McKibben in Reno. Hill pleaded guilty to one count of health care fraud and one count of money laundering. Little pleaded guilty to 28 counts of health care fraud and 10 counts of money laundering.
“The U.S. Attorney’s Office and U.S. Department of Justice will vigorously prosecute persons who cheat and steal from federally-funded programs,” said U.S. Attorney Bogden. “Everyone suffers when programs designed to help persons in need are defrauded.”
“The acceptance of guilt by Ms. Hill and Ms. Little is the first step prior to them facing sentencing for these crimes,” said Nevada Attorney General Catherine Cortez Masto. “This office will make a strong argument at sentencing to ensure that justice is served. The fraud perpetrated by both Ms. Hill and by Ms. Little spanned a number of years and involved Medicaid monies being paid out for services not provided.”
According to the court records, from about January 2007 to January 2011, Hill and Little defrauded the Nevada Medicaid program of approximately $1 million by fraudulently billing for expensive therapy-related services such as psychosocial rehabilitation and basic skills training which were never provided. To execute their scheme, Hill and Little formed a company, the Hill/Little LLC, and entered into a contract with Nevada Medicaid to provide health care services to children who were eligible for Medicaid. Hill was the president of the LLC. Little, a PhD and licensed social worker, was to provide the clinical services to the children. Hill and Little then created a program to obtain aid for the parents of the children who were eligible to receive the Medicaid funding; however, the program was not authorized or allowed under their Medicaid contract with the state. Hill recruited parents and guardians to provide services to their own children following minimal training provided by Hill/Little LLC. The services were nothing more than what parents normally do without reimbursement. Hill/Little LLC then billed Medicaid $8,000 per month for each child, using a billing code which was only authorized for services that could have been provided by Little, the licensed social worker. Hill/Little kept $5,000 per month for each child and paid each parent/guardian approximately $3,000. The parents/guardians reported that their children received no services from Hill or Little, and none of the services billed by Hill/Little from January 2007 to January 2011 were ever provided. Using this scheme, Hill and Little unlawfully received approximately $1 million from Medicaid for services they did not provide.
Hill and Little face up to 10 years in prison and a $250,000 fine on the health care fraud charges and up to 20 years in prison and a $500,000 fine on the money laundering charges. They are scheduled to be sentenced on July 23, 2013, beginning at 9:30 a.m. in Reno.
The case was investigated by the State of Nevada Medicaid Fraud Control Unit, the State of Nevada Attorney General’s Office, and IRS Criminal Investigation, and is being prosecuted by Assistant U.S. Attorney Ronald C. Rachow and Senior Deputy Attorney General Andrew Schulke, designated as a Special Assistant U.S. Attorney, with assistance from the Nevada Attorney General’s Office.
This case was handled in connection with the President's Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
Two Sentenced for Using Stolen Identities to Claim Millions in Fraudulent Income Tax RefundsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Tawanda Marimbire, 25, of Cincinnati was sentenced in U.S. District Court to 70 months in prison for his role in a scheme to use stolen identities to obtain at least $5 million in fraudulent tax refunds. Co-conspirator Kudzaishe Robert Bungu, 28, was sentenced to 27 months in prison.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Mark Porter, Special Agent in Charge, U.S. Secret Service, and Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office (IRS), announced the sentences handed down yesterday by Chief U.S. District Judge Susan Dlott.
In early 2012, the Secret Service and IRS began investigating a large ring of individuals around the Cincinnati community who were using stolen identities to file fraudulent income tax returns and then steal the fraudulent tax refunds. Members of the ring purchased stolen identities for thousands of actual taxpayers through illicit online forums and from accomplices. The undisputed head of the scheme was Kudzaiishe Marimbire, the brother of Tawanda Marimbire. Most of the stolen funds were laundered and sent to Zimbabwe.
On April 11, 2012, government agents executed a search at several locations. They seized numerous luxury cars, computers, and tax documents. They also found more than $1 million in cash and money orders in a storage locker used by the Marimbire ring. Several members of the group immediately fled the Cincinnati area. Kudzaiishe Marimbire, Hlomera Mabhande, Andrew Bere, and Julius Marimbire fled to Zimbabwe and are fugitives. Tawanda Marimbire was arrested days after the search as he attempted to cross the Canadian border with about $76,000 in cash. Johanes Tagarisa was eventually arrested in Atlanta months after the seven were indicted in September 2012. He pleaded guilty on December 10, 2013 to one count of conspiracy and is awaiting sentencing.
Tawanda Marimbire pleaded guilty on January 15, 2013 to one count of wire fraud. Bungu pleaded guilty on December 17, 2012 to one count of engaging in illegal monetary transactions.
“This case is a perfect example of the emerging problem with tax refunds obtained through the use of stolen identities,” U.S. Attorney Stewart said. “In 2012, around the same time that this case was investigated and indicted, the Department of Justice announced a new directive to fight this exact scheme, which was named ‘stolen identity refund fraud’ or ‘SIRF.’”
IRS Criminal Investigation Special Agent in Charge Kathy A. Enstrom said, “Individuals who commit refund fraud and identity theft of this magnitude and with this degree of trickery, dishonesty and deceit, deserve to be punished to the fullest extent of the law. IRS Criminal Investigation remains committed to the pursuit of refund fraud and identity theft, and together with our partners at the U.S. Attorney’s Office, we will hold those who engage in similar conduct accountable.”
Others charged as a result of the ongoing investigation include: * Tinotende Madyira, 25, sold a list of stolen identities to Kudzaishe Marimbire. He pleaded guilty to identity theft and was sentenced to 12 months and 1 day of imprisonment.
• Liberty Matonhodze, 25, working for Bungu, he was involved in withdrawing the refunds from the debit cards at ATMs. He was sentenced to 12 months and 1 day of imprisonment, plus restitution of $120,000.
• Fitzgerald Chibamu, 36, was involved with Kudzaiishe Marimbire in the transfer of the stolen funds through his bank accounts to Zimbabwe. He has pleaded guilty and is awaiting sentencing.
• Charges are pending against Lameigo Mutongwiza and Zla Holder, indicted on November 6, 2013.U.S. Attorney Stewart commended the cooperative investigation by the Secret Service and IRS, as well as Assistant United States Attorney Timothy Mangan, who is representing the United States in this case.
###Two People from Mexico Indicted for LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that Ismael Espinoza-Ortiz, a/k/a Misael Sereseres Ortega, age 37, and Alejandra Corral Madrid, age 26, both of Mexico, appeared before U.S. District Judge Roberto A. Lange on March 6, 2013 and pled guilty to the Indictment that charged them with Bank Larceny. The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release; an additional 2 years of supervised release upon revocation; and $100 to the Victim Assistance Fund. Restitution may be imposed.
The charge stems from an incident on November 5, 2012 wherein Sereseres Ortega and Corral Madrid entered the BankWest branch office in Pierre, South Dakota and Sereseres Ortega handed the bank teller $1,535 in small bills and requested the teller change the bills into larger ones. Corral Madrid stood next to Sereseres Ortega at the teller window and witnessed the interaction. While the teller walked several feet from her station to use a bill counting machine, Sereseres Ortega reached his left hand under the glass and stole property and money belonging to and in the care, custody and control, management and possession of BankWest in the amount of $2,070. After taking the property and money belonging to BankWest, Sereseres Ortega and Corral Madrid exited the bank and fled Pierre. They were arrested later that day in Campbell County, South Dakota.
Sereseres Ortega also pled guilty to the Indictment that charged him with Illegal Reentry after Deportation. The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release; an additional 2 years of supervised release upon revocation; and $100 to the Victim Assistance Fund.
That charge stems from incidents wherein Sereseres Ortega has previously been ordered to deport from the United States. He was ordered to deport to Mexico on June 18, 1995 and was deported on January 19, 1996 through El Paso, Texas. He was arrested by immigration officials on October 6, 1997 and was again removed to Mexico on October 9, 1997. He was arrested again by immigration officials on February 17, 2010 and deported to Mexico on February 23, 2010. At no time since his initial deportation in 1996, has Sereseres Ortega requested or been granted permission to reenter the United States.
The investigation was conducted by the Federal Bureau of Investigation and the Immigration and Customs Enforcement. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the cases. Both defendants were remanded to the custody of the U.S. Marshal pending sentencing, which has been set for May 29, 2013.
Two Northern California Real Estate Investors Agree to Plead Guilty to Bid Rigging at Public Foreclosure AuctionsRead the Press Release
Two Northern California real estate investors have agreed to plead guilty for their role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Felony charges were filed today in the U.S. District Court for the Northern District of California in Oakland against Peter McDonough of Pleasanton, Calif., and Michael Renquist of Livermore, Calif.
Including today’s pleas, 29 individuals have pleaded guilty or agreed to plead guilty as a result of the department’s ongoing antitrust investigation into bid rigging and fraud at public real estate foreclosure auctions in Northern California.
According to court documents, for various lengths of time between November 2008 and January 2011, McDonough and Renquist conspired with others not to bid against one another, but instead designated a winning bidder to obtain selected properties at public real estate foreclosure auctions in Alameda County, Calif . McDonough and Renquist were also charged with a conspiracy to use the mail to carry out a scheme to fraudulently acquire title to selected Alameda County properties sold at public auctions, to make and receive payoffs and to divert money to co-conspirators that would have gone to mortgage holders and others by holding second, private auctions open only to members of the conspiracy. The department said that the selected properties were then awarded to the conspirators who submitted the highest bids in the second, private auctions. The private auctions often took place at or near the courthouse steps where the public auctions were held. Renquist was also charged with additional counts for his involvement in similar conduct in Contra Costa County, Calif.
“The conspirators suppressed competition and lined their pockets through fraudulent and collusive conduct at the expense of lenders and distressed homeowners,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The Antitrust Division and its law enforcement partners at the FBI will continue to hold accountable individuals who subvert the competitive process at foreclosure auctions around the country.”
The department said that the primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at Alameda and Contra Costa County public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, the conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and, in some cases, the defaulting homeowner.
“The FBI and the Antitrust Division continue to bring to justice those individuals who engage in fraudulent anticompetitive practices at foreclosure actions,” said David J. Johnson, FBI Special Agent in Charge of the San Francisco Field Office. “The foundation of our real estate market depends on fairness and transparency of all participants, and we are committed to working with our local and federal partners to ensure that conspirators are held accountable.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for the Sherman Act charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than $1 million. A count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine. The government can also seek to forfeit the proceeds earned from participating in the conspiracy to commit mail fraud.
The charges today are the latest filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa and Alameda counties, Calif. These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco office. Anyone with information concerning bid rigging or frau d related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Field Office at 415-436-6660, visit www.justice.gov/atr/contact/newcase.htm, or call the FBI tip line at 415-553-7400.
Today’s case was done in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
**The fraud charge(s) referenced in this press release were subsequently dismissed on the government’s motion.**
Two Men Charged with Real Estate Investment Fraud SchemeRead the Press Release
NEWARK N.J. – Two men were arrested this morning and charged with engaging in a real estate investment fraud conspiracy that defrauded more than fifteen victims of approximately $5 million from 2009 to the present, U.S. Attorney Paul J. Fishman announced.
Paul Mancuso, 46, of Glen Rock, N.J., and Pasquale Stiso, a/k/a “Pat Stiso,” 52, of West Harrison, N.Y., are charged by Complaint with one count of conspiracy to commit wire fraud. They made their initial court appearances this afternoon before U.S. Magistrate Judge Madeline Cox Arleo in Newark federal Court. Stiso was released on bail. Mancuso was ordered detained, pending a bail hearing tomorrow.
According to the Complaint: From 2009 through the present, Mancuso held himself out as a real estate investor, broker, and/or developer, as well as a “hard money” lender and broker of other various purported investments. Mancuso obtained from his victims substantial investments for various projects that, in fact, either did not exist at all, or in which Mancuso had no actual involvement. Stiso, a disbarred attorney, held himself out as an individual who was working with Mancuso on various purported projects. Some of the purported projects touted by Mancuso, Stiso, and/or their co-conspirators included investments in a phony ticket scam, the development of a pizzeria at a resort in the Bahamas, the development of a casino in Atlantic City, the development of a commercial shopping center, and the “flipping” of a piece of real estate in Matawan. Most, if not all, of Mancuso’s victims lost all or substantially all of the money they invested with him and his co-conspirators. Many of Mancuso’s victims have lost all or substantially all of their life savings in his various schemes to defraud.The Complaint also alleges that Mancuso and Stiso were heavily involved in illegal gambling pursuits, and that they both owe substantial sums of money to one of their bookmakers or “bookies” (referred to in the Complaint as “the Bookie”). Indeed, Mancuso paid the Bookie in excess of $600,000 from gambling losses in or around 2012, and defendant Mancuso still owes the Bookie approximately $500,000 from gambling losses.
The charge of wire fraud conspiracy carries a maximum potential penalty of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greatest.
U.S. Attorney Fishman credited special agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge David Velazquez; Special Agents of the Internal Revenue Service-Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen; as well as Criminal Investigators of the U.S. Attorney’s Office for the investigation leading to today’s arrests.
The government is represented by Assistant U.S. Attorney Lisa M. Colone of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations in the Complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
13-109
Defense counsel: Mancuso: Mary Frances Palisano, Esq., Newark, NJ (standing in for Lawrence Lustberg, Esq.)
Stiso: Max Di Fabio, Esq. White Plains, NYMancuso, Paul and Stiso, Pasquale Criminal Complaint
Two Fitchburg Men Convicted of Distributing CocaineRead the Press Release
BOSTON – Two Fitchburg men were convicted today in U.S. District Court in Worcester of conspiracy and multiple counts of distributing crack cocaine.
Shawn McWhorter a/k/a/ Kaeshaun, 39, and Junior Barclay a/k/a Mouse, 31, were convicted by a jury of multiple counts of distributing cocaine base (crack) and conspiracy to distribute cocaine base. United States District Judge Timothy S. Hillman scheduled sentencing for McWhorter on May 30, 2013, and Barclay on May 29, 2013. Defendants convicted under this statute are subject to serve a maximum of 40 years in prison, followed by five years of supervised release and a fine of $4 million.
During the four-day trial, evidence proved that McWhorter distributed crack cocaine on July 26, 2011, and that he and Barclay together conspired to and did distribute crack cocaine on August 5, 2011, and August 25, 2011. In January 2011, McWhorter and Barclay were arrested as part of Operation Red Wolf, a multi-agency investigation targeting gang members involved in drug dealing and firearms distribution in the Fitchburg area.
United States Attorney Carmen M. Ortiz; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Fitchburg Police Chief Robert A. DeMoura; Webster Police Chief Timothy J. Bent; Gene Marquez, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Cory Flashner and Mark Grady of Ortiz’s Worcester Branch Office.Two Defendants Plead Guilty in Manhattan Federal Court to Participating in $57.3 Million Fraud on Organization That Makes Reparations to Victims of Nazi PersecutionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that POLINA STAROSELETSKY and ASYA GALINDO pled guilty today in Manhattan federal court to conspiring to defraud programs administered by the Conference on Jewish Material Claims Against Germany, Inc. (the “Claims Conference”), established to aid the survivors of Nazi persecution, out of more than $57 million. STAROSELETSKY was arrested in November 2010, and GALINDO was arrested in October 2011, as part of an ongoing investigation that has resulted in charges against a total of 31 defendants, 10 of whom were former Claims Conference employees, including a former director. STAROSELETSKY pled guilty before U.S. District Judge Thomas P. Griesa, and GALINDO pled guilty before U.S. Magistrate Judge Sarah Netburn.
Manhattan U.S. Attorney Preet Bharara said: “The sad drumbeat continues in this appalling, multi-million dollar fraud scheme against an organization dedicated to providing aid to victims of the Nazis, with 25 of the 31 defendants charged now having pled guilty. We will continue to aggressively prosecute each and every individual who allegedly played a role in this fraud, and we will not stop until justice is served.”
According to the Complaints and the Indictment filed in Manhattan federal court:
The Claims Conference, a not-for-profit organization which provides assistance to victims of Nazi persecution, supervises and administers several funds that make reparation payments to victims of the Nazis, including “the Hardship Fund” and “the Article 2 Fund,” both of which are funded by the German government. Applications for disbursements through these funds are processed by employees of the Claims Conference’s office in Manhattan, and the employees are supposed to confirm that the applicants meet the specific criteria for payments under the funds.
As part of the charged scheme, a network of individuals systematically defrauded the Article 2 Fund and Hardship Fund programs for over a decade. The Claims Conference first suspected the fraud in December 2009, and immediately reported their suspicions to law enforcement, which conducted a wide-reaching investigation.
The Hardship Fund pays a one-time payment of approximately $3,500 to victims of Nazi persecution who evacuated the cities in which they lived and were forced to become refugees. Members of the conspiracy submitted fraudulent applications for people who were not eligible. Many of the recipients of fraudulent funds were born after World War II, and at least one person was not even Jewish. Some members of the conspiracy recruited other individuals to provide identification documents, such as passports and birth certificates, which were then fraudulently altered and submitted to corrupt insiders at the Claims Conference, who then processed those applications. When the applicants received their compensation checks, they kept a portion of the money and passed the rest back up the chain.
From the investigation to date, the Claims Conference has determined that at least 3,839 Hardship Fund applications appear to be fraudulent. These applications resulted in a loss to the Hardship Fund of approximately $12.3 million.
The Article 2 Fund makes monthly payments of approximately $400 to survivors of Nazi persecution who make less than $16,000 per year, and either lived in hiding or under a false identity for at least 18 months; lived in a Jewish ghetto for 18 months; or were incarcerated for six months in a concentration camp or a forced labor camp. The fraud involved doctored identification documents in which the applicant’s date and place of birth had been changed. The fraud also involved more sophisticated deception, including altering documents that the Claims Conference obtained from outside sources to verify a person’s persecution by the Nazis. Some of the detailed descriptions of persecution in the fraudulent Article 2 Fund applications were completely fabricated.
From the investigation to date, the Claims Conference has determined that at least 1,112 Article 2 Fund cases it processed have been determined to be fraudulent. Those cases have resulted in a loss to the Claims Conference of approximately $45 million.
While employed as a caseworker in the Article 2 Fund program at the Claims Conference, STAROSELETSKY knowingly processed fraudulent applications in return for payments from her co-conspirators. In addition, after she was no longer employed by the Claims Conference, STAROSELETSKY passed materials, including identification documents, to a co-conspirator still employed at the Claims Conference to support fraudulent Hardship Fund applications.
GALINDO recruited individuals to provide identification documents that were subsequently used in connection with the preparation of fraudulent Hardship Fund and Article 2 Fund applications, in exchange for a portion of the money paid out to those applicants.
With today’s pleas, a total of 25 defendants charged in the scheme have pled guilty, including seven former Claims Conference employees. Charges remain pending against the remaining six defendants in the case, who are presumed innocent unless and until proven guilty.
STAROSELETSKY, 50, of Brooklyn, New York, and GALINDO, 73, of Sherman Oaks, California, each face a maximum sentence of 20 years in prison. STAROSELETSKY and GALINDO are scheduled to be sentenced by Judge Griesa on August 14 and August 27, 2013, respectively.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation (“FBI”). He also thanked the Claims Conference for bringing this matter to the FBI’s attention and for its extraordinary continued cooperation in this investigation, which he noted is ongoing.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorney Christopher D. Frey and Special Assistant U.S. Attorney Rebecca Rohr are in charge of the prosecution.
U.S. v. Semen Domnitser, et al S1 Indictment
Two City of Miami Police Officers and One State Corrections Officer Arrested and Charged in Separate Corruption InvestigationsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Manuel Orosa, Chief, City of Miami Police Department, announced today that Bernard Beliard, 27, a State Corrections officer assigned to the South Florida Reception Center, Vital Frederick, 26, and Malinzky Bazile, 28, City of Miami police officers, were arrested today and charged in three separate complaints with fraud and extortion offenses. The defendants made their initial appearance in federal court this afternoon before U.S. Magistrate Judge Robert L. Dubé.
The first complaint (Criminal No. 13-2314-Dubé) charges Bernard Beliard with access device fraud and aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(3) and 1028A(a)(1), respectively. The second complaint (Criminal No. 13-2315-Dubé) charges Vital Frederick with extortion under color of official right, access device fraud, and aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(3), 1028A(a)(1), and 1951(a), respectively. The third complaint (Criminal No. 13-2316-Dubé) charges Malinsky Bazile with access device fraud, use of a computer to facilitate the access device fraud, and aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2), 1030(a)(4), and 1028A(a)(1), respectively.
According to the allegations in each of the complaints, the defendants used their official law enforcement position to gain and/or access personal identifying information, including names, dates of birth, and social security numbers of individuals. More specifically, Beliard and Frederick are alleged to have gained access to and sold personal identifying information of unsuspecting individuals to an FBI source believing that such information would be used in a tax return fraud. Bazile allegedly used the City’s official computer to gain access to personal identifying information of individuals, and then used the information to participate in a tax return fraud scheme. Frederick is also charged with providing security and protection services to a check cashing operation that purportedly cashed fraudulent treasury checks.
U.S. Attorney Wifredo A. Ferrer stated, “Identity theft and stolen identity refund fraud are the fastest growing crimes in South Florida, spreading like a virus. The perpetrators of this type of fraud have been as diverse as the victims they prey upon. To date, we have prosecuted Social Security office employees, hospital employees, clinic workers, former NFL players, gang members, and violent criminals, to name a few. Today, we sadly add law enforcement to the list of thieves.”
“Lawmen have a great responsibility and therefore must be held to a higher standard,” said Acting SAC William J. Maddalena for FBI Miami. “The FBI’s Miami Area Corruption Task Force was assembled and designed to ensure that these high standards of integrity are met and maintained.”
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Public Corruption Task Force, with the assistance of the City of Miami Police Department, Internal Revenue Service, and the Florida Department of Corrections - Office of Inspector General (FDOC-OIG). These cases are being prosecuted by Assistant U.S. Attorneys Robin W. Waugh and Michael N. Berger.
A criminal complaint is only an accusation and a defendant is presumed innocent unless proven guilty.
Attachments: Bazile,Malinsky Complaint (PDF)
Beliard,Bernard Complaint (PDF)
Frederick,Vital Complaint (PDF)A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Tijuana Cartel Leader Extradited to U.S.Read the Press Release
Cesar Alfredo Meza-Garcia, a leader within the powerful Tijuana Cartel, was extradited from Mexico to the United States today to face drug charges in the Southern District of California. Meza- Garcia was arrested by Mexican law enforcement officers on September 26, 2012, at the request of the United States. Since his arrest in Mexico, Meza-Garcia has remained in custody pending extradition to the United States.
According to court documents, Meza-Garcia is the lead defendant in a 19-defendant indictment charging him with conspiracy to distribute cocaine and methamphetamine. He was a leader within the Tijuana Cartel, responsible for directing the movement of narcotics from Mexico into the United States. The indictment was handed up by a federal grand jury on June 15, 2012.
The charges stem from an Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) led investigation known as Operation Jackhammer II. Operation Jackhammer II focused on members of Meza-Garcia’s importation cell, which was responsible for smuggling methamphetamine, cocaine and marijuana into Chula Vista and San Diego for distribution throughout the state of California.
United States Attorney Duffy praised the Mexican government for its assistance in the extradition of Meza-Garcia and noted that violent drug cartels continue to menace both countries. “Drug trafficking is one of the most serious national security threats the United States faces. This is one more step toward securing the communities on both sides of the border.”
Duffy also commended the Organized Crime Drug Enforcement Task Force (OCDETF) for the coordinated team effort in handling this investigation. Agents and officers from HSI and the Chula Vista Police Department participated in this OCDETF investigation. The Criminal Division’s Office of International Affairs provided significant assistance in the extradition. The OCDETF program was created to consolidate and utilize all law enforcement resources in this country’s battle against organized crime and major drug trafficking organizations.
“This extradition serves as a stern warning to other fugitives who think they can evade U.S. law enforcement by hiding out in Mexico,” said Derek Benner, special agent in charge for HSI in San Diego. “I commend our Mexican law enforcement partners for their hard work, which helped us immensely in our effort to dismantle a dangerous criminal enterprise that not only controlled a major drug smuggling corridor in Tijuana, but operated a large meth trafficking organization on both sides of the border.”
The defendant is expected to be in federal court in San Diego tomorrow, March 8, 2013, at 10:30 a.m., before United States Magistrate Judge Jan Adler.
Law enforcement continues to seek the public's assistance in locating fugitive defendants Salvador Alcala-Gonzales, aka Chava, Miguel Angel Bravo-Pena, and Jose Luis Casillas, all of whom are believed to be in Mexico. Anyone with information regarding these fugitives may contact HSI at 1-866-DHS-2- ICE.
DEFENDANT Case Number 12CR2414-WQH Cesar Alfredo Meza-Garcia SUMMARY OF CHARGESTitle 21, United States Code, Sections 841(a)(1) and 846 - Conspiracy to Distribute Controlled Substances
INVESTIGATING AGENCIES
Maximum penalties: Life in prison, a $10,000,000 fine and 5 years of supervised releaseU.S. Immigration and Customs Enforcement’s Homeland Security Investigations
Chula Vista Police DepartmentAn indictment itself is not evidence that the defendant committed the crimes charged.
The defendant is presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.Three South Jersey Individuals Plead Guilty to Defrauding Fema Relating to Major DisastersRead the Press Release
CAMDEN, N.J. – Three individuals today admitted to disaster benefits fraud relating to a presidential disaster declaration for the state of New Jersey after the nor’easter in 2010 and Hurricane Irene in 2011, U.S. Attorney Paul J. Fishman announced.
Debbie Hicks, 51, of Atlantic City, N.J., pleaded guilty to a two-count Information charging her with disaster benefits fraud and making false statements to the U.S. Department of Housing and Urban Development.
Dwana Wright, 40, and Ryan Stevens, 38, both of Camden each pleaded guilty to separate Informations charging them with disaster benefits fraud. All three defendants entered their guilty pleas during separate appearances before Senior U.S. District Judge Joseph E. Irenas.
According to documents filed in this case and statements made in court:Due to FEMA's vast size and the typically large number of victims resulting from a disaster, FEMA has been frequently targeted in disaster fraud schemes by individuals or groups seeking FEMA monetary assistance for benefits to which they were not entitled. These individuals accomplished their schemes by submitting fraudulent applications to FEMA for, among other things, repairs and rental assistance.
Defendant Debbie Hicks
As a result of the nor’easter, Hicks’ apartment in Atlantic City was damaged. On or about April 12, 2010, Hicks filed an application with FEMA seeking federal rental assistance under FEMA’s Individual Assistance Program, claiming that her apartment in Atlantic City was damaged as a result of the severe storm and was unfit for occupancy.
On April 13, 2010, a FEMA inspector confirmed Hicks’ occupancy and the damage to her rental unit, and declared her apartment uninhabitable. Thereafter, FEMA awarded Hicks rental assistance in the amount of $923 per month. In her application to FEMA, Hicks failed to disclose that her rent was being paid by the Atlantic County Department of Family and Community Development.
During the plea hearing, Hicks admitted that to continue receiving money from FEMA she lied on various forms which were sent to FEMA. Hicks also admitted that she falsely stated that her rent was not being paid by another source. As a result of the fraud, Hicks received $15,691 in FEMA emergency rental assistance funds to which she was not entitled.
Hicks further admitted that while she was defrauding FEMA, she also lied to the Housing Authority and Urban Redevelopment Agency of the City of Atlantic City, which administers housing funds on behalf of HUD. Hicks admitted that when she applied for Section 8 housing, she failed to tell the housing authority that she was receiving funds from both FEMA and the Atlantic County Department of Family and Community Development. Hicks also admitted that she lied about her prior criminal record and the fact that she had used other names and Social Security numbers.
The charges to which Hicks pleaded guilty carry a maximum potential penalty of 35 years in prison and a fine of $500,000. Hicks’ sentencing is scheduled for June 14, 2013.
Defendant Dwana Wright
Wright admitted that she applied for FEMA benefits on Sept. 27, 2011. After FEMA awarded her temporary rental assistance, Wright admitted that she submitted fraudulent documents to FEMA to secure continued disaster assistance through FEMA’s rental assistance program. As a result of her fraud, Wright received $15,763 from FEMA’s emergency rental assistance funds to which she was not entitled.
Defendant Ryan Stevens
Stevens admitted that he applied for FEMA benefits on Sept. 13, 2011. After FEMA awarded him assistance for property damage and temporary rental assistance, Stevens admitted that he submitted fraudulent documents to FEMA to secure additional disaster assistance through FEMA’s rental assistance program. Stevens admitted that he received $15,487 from FEMA’s emergency rental assistance fund to which he was not entitled.
The charges to which Wright and Stevens pleaded guilty carry a maximum potential penalty of 30 years in prison and a fine of $250,000. Wright’s sentencing is scheduled for June 21, 2013. Stevens’ sentencing is scheduled for June 21, 2013.
U.S. Attorney Fishman credited special agents of the Department of Homeland Security, Office of Inspector General, under the direction of Special Agent in Charge Gregory Null, and special agents of U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Joseph W. Clarke for the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
13-108
Defense counsel: Hicks: Maggie Moy, Esq., Assistant Federal Public Defender, Camden
Wright: Lori Koch, Esq., Assistant Federal Public Defender, Camden
Stevens: Lori Koch, Esq., Assistant Federal Public Defender, CamdenHicks, Debbie Information
Wright, Dwana Information
Stevens, Ryan InformationThree Camp Pendleton Contractors Plead Guilty to Pilfering over $3 Million in Medical EquipmentRead the Press Release
United States Attorney Laura E. Duffy announced that three civilian contractors who until recently worked at Camp Pendleton appeared today in federal court, and pled guilty to charges stemming from their theft of expensive medical equipment that the military had planned to ship overseas to treat injured Marines.
According to the Indictment, defendants Henry Bonilla, Richard Navarro and Michael Tuisee worked in warehouses run by 1st Medical Logistics Company (“1st MEDLOG”) aboard Camp Pendleton -- the United States Marine Corps’ largest West Coast expeditionary force training facility. 1st MEDLOG is the unit responsible for maintaining medical equipment and shipping necessary medical items to combat forces throughout the world. By virtue of their employment as defense contractors, the defendants had access to sophisticated, expensive medical equipment stored at 1st MEDLOG warehouses. In their plea agreements and at today’s hearing, each defendant admitted to participating in a conspiracy to steal medical equipment from 1st MEDLOG, including ultrasound machines, ventilators, hydroclaves, defibulators, headlights, and laryngoscopes. The defendants repeatedly stole these costly medical items, loaded them into their personal vehicles, and surreptitiously sold them to medical equipment resellers – often meeting with customers during nighttime rendezvous in secluded parking lots. The defendants admitted that the combined value of the stolen medical equipment exceeded $3 million.
The defendants pled guilty today at a hearing held before Magistrate Judge William McCurine, Jr., and their guilty pleas are subject to final acceptance by District Court Judge Cathy A. Bencivengo. All three defendants are scheduled to be sentenced on May 24, 2013 at 9 a.m. by Judge Bencivengo.
United States Attorney Duffy commented: “The defendants stole medical equipment that was meant to be shipped to our troops, secretly transported it off of Camp Pendleton, and sold it for their own personal gain. Today’s guilty pleas advance the goals of rooting out corruption among our area defense contractors, and sending a strong message that the Department of Justice will vigorously investigate and prosecute those who seek to profit at the expense of our men and women in uniform.” Duffy reminded the public that these charges were the result of an ongoing investigation into theft of valuable property aboard Camp Pendleton, and asked the public to contact the Naval Criminal Investigative Service (NCIS) at 1-800-264-6485 or www.ncis.navy.mil if they have any information relevant to that investigation.asdf
DEFENDANTS Case Number: 13cr0338-CAB Henry Bonilla
Richard Navarro
Michael Tuisee SUMMARY OF CHARGESCount 1: Conspiracy to Engage in Theft of Government Property, Title 18, United States Code, Section 371 (all defendants)
INVESTIGATING AGENCY
Maximum penalties: 5 years in prison, $250,000 fine, term of supervised release of 3 years, restitution, and $100 special assessment.Naval Criminal Investigative Service
Sulaiman Abu Ghayth, Associate of Usama Bin Laden, Arrested for Conspiring to Kill AmericansRead the Press Release
Sulaiman Abu Ghayth, aka “Suleiman Abu Gayth”, a former associate of Usama Bin Laden, has been arrested and charged in an indictment unsealed today in New York City with conspiracy to kill U.S. nationals, announced Attorney General Eric Holder, Assistant Attorney General for National Security Lisa Monaco, U.S. Attorney for the Southern District of New York Preet Bharara, the Assistant Director-in-Charge of the FBI’s New York Field Office George Venizelos, and the Police Commissioner of the City of New York (NYPD) Raymond W. Kelly. Abu Ghayth is expected to be presented and arraigned tomorrow, March 8, 2013, at 10:00 a.m. before U.S. District Judge Lewis A. Kaplan.
“No amount of distance or time will weaken our resolve to bring America's enemies to justice,” said Attorney General Holder. “To violent extremists who threaten the American people and seek to undermine our way of life, this arrest sends an unmistakable message: There is no corner of the world where you can escape from justice because we will do everything in our power to hold you accountable to the fullest extent of the law.”
“The arrest of Abu Ghayth is an important milestone in our ongoing counterterrorism efforts. I applaud the many agents, analysts and prosecutors responsible for bringing about this significant case and arrest,” said Assistant Attorney General Monaco.
“It has been 13 years since Abu Ghayth allegedly worked alongside Usama Bin Laden in his campaign of terror, and 13 years since he allegedly took to the public airwaves, exhorting others to embrace al Qaeda’s cause and warning of more terrorist attacks like the mass murder of 9/11,” said U.S. Attorney Bharara. “The memory of those attacks is indelibly etched on the American psyche, and today’s action is the latest example of our commitment to capturing and punishing enemies of the United States, no matter how long it takes.”
“Sulaiman Abu Ghayth held a key position in al Qaeda, comparable to the consigliere in a mob family or propaganda minister in a totalitarian regime,” said FBI Assistant Director-in-Charge Venizelos. “He used his position to persuade others to swear loyalty to al Qaeda’s murderous cause. He used his position to threaten the United States and incite its enemies. His apprehension is another important step in the campaign to limit the reach of al Qaeda and enhance our national and international security.”“While New York City must remain vigilant to continued terrorist threats against it, Abu Ghayth's apprehension and prosecution promises to close another chapter in al Qaeda's notoriously violent history of killing Americans,” said NYPD Commissioner Kelly. “This case also represents another success in the ongoing partnership between Federal agents and NYPD detectives through the JTTF.”
As alleged in the superseding indictment that has been filed against Abu Ghayth in federal court:
Since around 1989, al Qaeda has been an international terrorist organization, dedicated to opposing non-Islamic governments with force and violence. Usama Bin Laden served as the leader or “emir” of al Qaeda until his death on or about May 2, 2011. Members of al Qaeda typically have pledged an oath of allegiance, called bayat, to Bin Laden and to al Qaeda.
The core purpose of al Qaeda, as stated by Bin Laden and other leaders, is to support violent attacks against property and nationals, both military and civilian, of the United States and other countries. Between 1989 and 2001, al Qaeda established training camps, guest houses, and business operations in Afghanistan, Pakistan, and other countries for the purpose of training and supporting its agenda of violence and murder. Members and associates of al Qaeda have executed a number of terrorist attacks, all in furtherance of the organization’s stated conspiracy to kill Americans, including the attacks on the United States on September 11, 2001 in New York, Virginia, and Pennsylvania, which killed approximately 2,976 people.
From at least May 2001 up to around 2002, Abu Ghayth served alongside Usama Bin Laden, appearing with Bin Laden and his then-deputy Ayman al-Zawahiri, speaking on behalf of the terrorist organization and in support of its mission, and warning that attacks similar to those of September 11, 2001 would continue.
In particular, around May 2001, Abu Ghayth urged individuals at a guest house in Kandahar, Afghanistan, to swear bayat to Bin Laden. On the evening of Sept. 11, 2001, after the terrorist attacks on the United States, Bin Laden summoned Abu Gayth and asked for his assistance and he agreed to provide it. On the morning of Sept. 12, 2001, Abu Ghayth, appeared with Bin Laden and Zawahiri, and spoke on behalf of al Qaeda, warning the United States and its allies that “[a] great army is gathering against you” and called upon “the nation of Islam” to do battle against “the Jews, the Christians and the Americans.” Also, after the September 11, 2001 terrorist attacks, Abu Ghayth delivered a speech in which he addressed the then-U.S. Secretary of State and warned that “the storms shall not stop, especially the Airplanes Storm,” and advised Muslims, children, and opponents of the United States “not to board any aircraft and not to live in high rises.”
Abu Gayth arranged to be, and was, successfully smuggled from Afghanistan into Iran in 2002.
The indictment charges Abu Ghayth with participating in a conspiracy to kill United States nationals. The offense carries a maximum term of imprisonment of life. No trial date has yet been set in the case.
The charges and arrest of Abu Ghayth are the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York, the Joint Terrorism Task Force – which principally consists of agents and detectives of the FBI and the New York City Police Department – the United States Marshals Service and the National Security Division of the U.S. Department of Justice. The Justice Department’s Office of International Affairs and the U.S. Department of State also provided assistance.
The prosecution is being handled by Assistant United States Attorneys John P. Cronan and Michael Ferrara of the Terrorism and International Narcotics Unit of the U.S. Attorney’s Office for the Southern District of New York, with assistance from Trial Attorney Jolie Zimmerman of the National Security Division’s Counterterrorism Section.The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Sulaiman Abu Ghayth, Associate of Usama Bin Laden, Arrested for Conspiring to Kill AmericansRead the Press Release
Sulaiman Abu Ghayth, a/k/a “Suleiman Abu Gayth”, a former associate of Usama Bin Laden, has been arrested and charged in an indictment unsealed today in New York City with conspiracy to kill U.S. nationals, announced Attorney General Eric Holder, Assistant Attorney General for National Security Lisa Monaco, U.S. Attorney for the Southern District of New York Preet Bharara, the Assistant Director-in-Charge of the FBI’s New York Field Office George Venizelos, and the Police Commissioner of the City of New York (NYPD) Raymond W. Kelly. Abu Ghayth is expected to be presented and arraigned tomorrow, March 8, 2013, at 10:00 a.m. before U.S. District Judge Lewis A. Kaplan.
Attorney General Eric Holder said: “No amount of distance or time will weaken our resolve to bring America's enemies to justice. To violent extremists who threaten the American people and seek to undermine our way of life, this arrest sends an unmistakable message: There is no corner of the world where you can escape from justice because we will do everything in our power to hold you accountable to the fullest extent of the law.”
Assistant Attorney General Lisa Monaco said: “The arrest of Abu Ghayth is an important milestone in our ongoing counterterrorism efforts. I applaud the many agents, analysts and prosecutors responsible for bringing about this significant case and arrest.”
Manhattan U.S. Attorney Preet Bharara said: “The law has a long arm and justice has a long memory. It has been 13 years since Abu Ghayth allegedly worked alongside Usama Bin Laden in his campaign of terror, and 13 years since he allegedly took to the public airwaves, exhorting others to embrace al Qaeda’s cause and warning of more terrorist attacks like the mass murder of 9/11. The memory of those attacks is indelibly etched on the American psyche, and today’s action is the latest example of our commitment to capturing and punishing enemies of the United States, no matter how long it takes.”
FBI Assistant Director-in-Charge George Venizelos said: “Sulaiman Abu Ghayth held a key position in al Qaeda, comparable to the consigliere in a mob family or propaganda minister in a totalitarian regime. He used his position to persuade others to swear loyalty to al Qaeda’s murderous cause. He used his position to threaten the United States and incite its enemies. His apprehension is another important step in the campaign to limit the reach of al Qaeda and enhance our national and international security.”
NYPD Commissioner Raymond W. Kelly said: “While New York City must remain vigilant to continued terrorist threats against it, Abu Ghayth's apprehension and prosecution promises to close another chapter in al Qaeda's notoriously violent history of killing Americans. This case also represents another success in the ongoing partnership between Federal agents and NYPD detectives through the JTTF.”
As alleged in the Superseding Indictment that has been filed against Abu Ghayth in federal court:
Since around 1989, al Qaeda has been an international terrorist organization, dedicated to opposing non-Islamic governments with force and violence. Usama Bin Laden served as the leader or “emir” of al Qaeda until his death on or about May 2, 2011. Members of al Qaeda typically have pledged an oath of allegiance, called bayat, to Bin Laden and to al Qaeda.
The core purpose of al Qaeda, as stated by Bin Laden and other leaders, is to support violent attacks against property and nationals, both military and civilian, of the United States and other countries. Between 1989 and 2001, al Qaeda established training camps, guest houses, and business operations in Afghanistan, Pakistan, and other countries for the purpose of training and supporting its agenda of violence and murder. Members and associates of al Qaeda have executed a number of terrorist attacks, all in furtherance of the organization’s stated conspiracy to kill Americans, including the attacks on the United States on September 11, 2001 in New York, Virginia, and Pennsylvania, which killed approximately 2,976 people.
From at least May 2001 up to around 2002, Abu Ghayth served alongside Usama Bin Laden, appearing with Bin Laden and his then-deputy Ayman al-Zawahiri, speaking on behalf of the terrorist organization and in support of its mission, and warning that attacks similar to those of September 11, 2001 would continue.
In particular, around May 2001, Abu Ghayth urged individuals at a guest house in Kandahar, Afghanistan, to swear bayat to Bin Laden. On the evening of September 11, 2001, after the terrorist attacks on the United States, Bin Laden summoned Abu Gayth and asked for his assistance and he agreed to provide it. On the morning of September 12, 2001, Abu Ghayth, appeared with Bin Laden and Zawahiri, and spoke on behalf of al Qaeda, warning the United States and its allies that “[a] great army is gathering against you” and called upon “the nation of Islam” to do battle against “the Jews, the Christians and the Americans.” Also, after the September 11, 2001 terrorist attacks, Abu Ghayth delivered a speech in which he addressed the then-U.S. Secretary of State and warned that “the storms shall not stop, especially the Airplanes Storm,” and advised Muslims, children, and opponents of the United States “not to board any aircraft and not to live in high rises.”
Abu Gayth arranged to be, and was, successfully smuggled from Afghanistan into Iran in 2002.
The indictment charges Abu Ghayth with participating in a conspiracy to kill United States nationals, in violation of Title 18, United States Code, Section 2332(b). The offense carries a maximum term of imprisonment of life. No trial date has yet been set in the case.
The charges and arrest of Abu Ghayth are the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York, the FBI’s Joint Terrorism Task Force – which principally consists of agents and detectives of the FBI and the New York City Police Department – the United States Marshals Service and the National Security Division of the U.S. Department of Justice. The Justice Department’s Office of International Affairs and the U.S. Department of State also provided assistance.
The prosecution is being handled by Assistant United States Attorneys John P. Cronan and Michael Ferrara of the Terrorism and International Narcotics Unit of the U.S. Attorney’s Office for the Southern District of New York, with assistance from Trial Attorney Jolie Zimmerman of the National Security Division’s Counterterrorism Section.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Sulaiman AbuGhayth Indictment
St. Paul Felon Sentenced for Possessing A .40-caliber PistolRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 37-year-old St. Paul felon was sentenced for possessing a .40-caliber pistol. United States District Court Judge Richard H. Kyle sentenced Wendell Terrell Brown to 180 months in prison on one count of being an armed career criminal in possession of a firearm. Brown was indicted on June 18, 2012, and pleaded guilty on October 12, 2012.
In his plea agreement, Brown admitted that on May 5, 2012, he possessed the pistol while riding as a passenger in a vehicle stopped by authorities in St. Paul. Because he is a felon, Brown is prohibited under federal law from possessing a firearm at any time. Brown’s prior convictions include possession of a short-barreled shotgun (Ramsey County, 1998) and felon in possession of a firearm (Ramsey County, 2002). In addition, Brown was convicted in Hennepin County for terroristic threats (1998), Washington County for fourth-degree sale of a controlled substance (2010), and in St. Croix County, Wisconsin, for possession with intent to distribute marijuana (2010).
Since at least three of Brown’s past felony convictions were for crimes of violence or serious drug crimes, his sentence in the federal current case was subject to the Armed Career Criminal Act, which mandates a minimum of 15 years in federal prison. Because the federal criminal system does not have parole, he will serve virtually his entire prison sentence behind bars.
This case was the result of an investigation by the St. Paul Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Jeffrey S. Paulsen.St. Francis Man Convicted of AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that Jonathan Mark Blindman, age 31, of St. Francis, South Dakota was convicted of one count of simple assault by a federal jury in Pierre. He was found not guilty of one count of Aggravated Sexual abuse and one count of Sexual Abuse. The charge carries a maximum penalty of 6 months in custody, a $5,000 fine, or both; and a $10 special assessment.
The conviction stems from an incident that took place on August 22, 2012 when Blindman assaulted the victim.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and was prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
The defendant was remanded to the custody of the U.S. Marshal.
Springfield Man Convicted of Drug ConspiracyRead the Press Release
BOSTON - A Springfield man was convicted late yesterday in U.S. District Court in Springfield of drug conspiracy charges.
Jose D. Cruz, 37, pleaded guilty before U.S. District Court Judge Michael A. Ponsor to conspiracy to distribute heroin and possession with intent to distribute heroin.
In February 2012, Cruz’s co-defendant, Ariel Acevedo arranged for the sale of approximately 150 grams of heroin to another individual. During numerous conversations, which were consensually monitored and recorded by the Drug Enforcement Administration, Acevedo discussed quantities, pricing, and quality of the heroin. During the actual drug sale, Cruz provided the individual with a package containing 150 grams of heroin, and the individual provided Acevedo with $11,250 in cash.
Judge Ponsor scheduled sentencing for June 17, 2013. Pursuant to his plea agreement, Cruz faces between 60 and 71 months in prison to be followed by four years of supervised release and a $250,000 fine. Acevedo is scheduled to plead guilty on March 19.
United States Attorney Carmen M. Ortiz; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division; Mark G. Mastroianni, Hampden County District Attorney; and Springfield Police Commissioner William Fitchet made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz’s Springfield Branch Office.
Sentences for March 01 - 07, 2013Read the Press Release
Joshua Michael Beckstead, 32, of Ogden, Utah, was sentenced by Federal District Court Judge Scott W. Skavdahl on March 7, 2013, for four counts of bank robbery. Beckstead was arrested in North Dakota. He received 112 months imprisonment, to be followed by three years of supervised release. In addition, he was ordered to pay a $500.00 special assessment and restitution in the amount of $14,033.00. This case was investigated by the Federal Bureau of Investigation.
Mario Oscar Interiano-Guzman, 40, of Honduras, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 4, 2013, for illegal re-entry of a previously deported alien into the United States. Interiano-Guzman was arrested in Douglas, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Jacob Scott Anderson, 24, of Wellington, Colorado, was sentenced by Federal District Court Judge Clarence A. Brimmer on March 1, 2013, for attempted bank robbery. Anderson self-surrendered. He received 40 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the Federal Bureau of Investigation.
Saratoga Man Pleads Guilty to Tax EvasionRead the Press Release
SAN JOSE, Calif. – Jonathan Jianguo Jiang pleaded guilty yesterday to tax evasion, United States Attorney Melinda Haag and Special Agent in Charge, IRS Criminal Investigation, Jose M. Martinez announced.
According to his plea agreement, on January 28, 2004, Jiang incorporated SecureM in the Cayman Islands. He was the director, president, and sole shareholder of SecureM. On April 17, 2004, SecureM was sold to a UK company for at least $8,600,000. From the sale of SecureM, Jiang received capital gains of at least $113,462 during 2004, $195,000 during 2005 and $2,635,575 during 2006, which he willfully omitted from his 2004, 2005, and 2006 federal income tax returns. These omissions resulted in $467,336 in additional tax due.
On March 6, 2012, Jiang, 47, of Saratoga, California, was charged with one count of willfully attempting to evade or defeat tax for the 2004 tax year. He pleaded guilty to the charge. Due to Jiang’s regular travel overseas, Jiang posted a bond of approximately $2,044,144.20.
The maximum statutory penalty for Tax Evasion, in violation of Title 26, U.S.C § 7201 is five years in prison and a fine of $100,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Cynthia Stier is the Assistant U.S. Attorney who is prosecuting this case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation
Russell Springs Felon Sentenced to 327 Months in Prison for Sexual Abuse of A MinorRead the Press Release
BOWLING GREEN, Ky. – A Russell Springs, Kentucky man formerly convicted of acquiring child pornography was sentenced in United States District Court this week by Senior Judge Thomas B. Russell to 327 months in prison followed by a lifetime of supervised release, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Morris E. Hall, Jr., age 64, was charged in a single count indictment by a federal grand jury on July 17, 2012 and pleaded guilty to the charge on December 6, 2012. Hall was indicted while completing a 78 month sentence for receipt of child pornography. According to court records, between October 5, 2005 and May 18, 2006, Hall was receiving and viewing images of child pornography, via the internet, on a United States Postal Service computer while working in the post office in Russell Springs. The abuse of the minor occurred on multiple occasions between May and August 2005 at the United States Post Office in Russell Springs.
“One of the highest priorities of my office is to protect children from sexual predators and prosecute those who prey on our most vulnerable citizens,” stated United States Attorney Hale. “This is a just sentence and will send a message to those who contemplate victimizing our children: you will go to prison.”
This case was prosecuted by Assistant United States Attorney Jo E. Lawless and was investigated by Kentucky State Police.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Rupert Man Sentenced to 48 Months in Prison for Distributing Meth in the Magic ValleyRead the Press Release
POCATELLO – Eulalio Loya, 56, of Rupert, Idaho, was sentenced yesterday in United States District Court to 48 months in prison for possession with intent to distribute 50 grams or more of actual methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Loya to serve three years of supervised release. He pleaded guilty to the charge on November 5, 2012.
According to the plea agreement, on February 16, 2012, Loya arranged to distribute a quarter pound of methamphetamine in Fort Hall, Idaho, and subsequently met and sold the individual in excess of 50 grams of actual methamphetamine.
Co-defendant Jose Tapia-Lopez, 29, a Mexican national, was sentenced on January 28 to 168 months in prison for possession with intent to distribute 50 grams or more of actual methamphetamine.
The case was investigated by the Drug Enforcement Administration and the Idaho State Police, with assistance by the Minidoka County Sheriff’s Office and Cassia County Sheriff’s Office.
Robbery Crew Member Who Impersonated Law Enforcement SentencedRead the Press Release
ROBBERY CREW MEMBER WHO IMPERSONATED LAW ENFORCEMENT SENTENCED
Defendant Dressed as Police Officer to Commit Home Invasion
ATLANTA - Torrez Seymore, 25, of Baltimore, Md., was sentenced today by United States District Judge Timothy C. Batten, Sr., for possessing with the intent to distribute marijuana obtained by robbery and discharging a firearm in connection with that robbery.
“The violence associated with drug crimes is especially disturbing to our community,” said United States Attorney Sally Quillian Yates. “We work hard to maintain public confidence that people are safe. Homes being raided by criminals dressed in law enforcement gear, carrying guns and yelling police is extremely unsettling. This case effectively dismantled this robbery crew,” she said.
According to United States Attorney Yates, the charges and other information presented in court: On January 14, 2010, Seymore and four others dressed as police officers and carrying guns assaulted a suburban house on Hyland Drive in DeKalb County, Ga. He and his fellow robbers used a vehicle tracking device on the victim’s cars to find the location of the house. The crew thought that the residents were marijuana suppliers.
The robbers wore fake police badges and vests with the word “Police” printed on them. They also carried handcuffs and firearms. As they pulled into the victim’s driveway, he came out of the house. The robbers yelled, “DeKalb County Police get down, cuff him!” Their goal was to force the victim take them to a “stash” house where they believed additional drugs were stored. While the robbers were in the middle of trying to kidnap the victim, a friend of the victim arrived and the robbers traded gunfire with him on the lawn. The robbers then beat and kidnaped the victim. The victim took the crew to his girlfriend’s home, under the pretense that it was the “stash” house that the robbers sought to find. The victim’s girlfriend fled the home through the back door and called police, who came and rescued the victim.
“Gun violence perpetrated by anyone tears at the very fabric of our communities; but when this violence is committed by impersonating law enforcement; an alarming message of intolerance needs to be sent to those who dare to engage in such offenses,” said Bureau of Alcohol, Tobacco, and Firearms (ATF) Assistant Special Agent in Charge Aladino Ortiz. “As the violent crime bureau, ATF will see to it that individuals who illegally arm themselves are removed from our streets so that our communities can remain a safe place to live and prosper.”
Seymore was sentenced to 13 years, 10 months in prison to be followed by 5 years of supervised release. Seymore was convicted of these charges on March 7, 2013, upon his plea of guilty.
This case was investigated by Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorneys Kim Dammers and Timothy Storino prosecuted the case.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Richmond Woman Sentenced to Ten Years for Defrauding Elderly VictimRead the Press Release
RICHMOND, Va. – Lenora Banks-Davis, aka “Jacqui Banks-Davis,” 58, of Richmond, Virginia, was sentenced today to 120 months in prison, to be followed by five years of supervised release for defrauding an elderly widow.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; and Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field office, made the announcement after sentencing by United States District Judge John A. Gibney, Jr. In reaching the final sentence of 120 months, Judge Gibney levied a significant upward departure to address the defendant’s egregious, long-term conduct against the victim.
According to evidence presented at trial, in 2009 Banks-Davis used an elderly victim’s BB&T credit card for the purpose of paying the defendant’s own personal expenses and obligations. Banks-Davis obtained the victim’s credit card by falsely representing that she would use the credit card only to help the victim consolidate and pay off her financial obligations. Instead of fulfilling that promise, Banks-Davis charged thousands of dollars of her own expenses onto the victim’s card without her knowledge or authorization. From late May through November 2009, Banks-Davis charged over $13,000 at a number of establishments, ranging from mundane expenses to extravagant luxuries, including thousands of dollars in pet care and over $700 in high-end acai berry juice.
At trial, the United States established that, in addition to the charged conduct, Banks-Davis had previously defrauded the victim over the course of a thirty-year relationship. Additionally, just prior to that conduct, Banks-Davis accepted more than $6,000 in charity from members of the Bon Air Baptist Church. As a condition of her sentence, the Court prohibited Banks-Davis from having any contact with the victim and members of the victim’s family.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorneys Michael Gill and Dominick S. Gerace prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Ray Kyle Nicholson Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on March 6, 2013, before Chief U.S. District Judge Richard F. Cebull, RAY KYLE NICHOLSON, a 30-year-old resident of Billings, appeared for sentencing. NICHOLSON was sentenced to a term of:
Prison: 45 months, consecutive to a state sentence
Special Assessment: $200
Supervised Release: 3 years
NICHOLSON was sentenced in connection with his guilty plea to being an unlawful user of controlled substance in possession of a firearm and possession of a firearm with an obliterated serial number.
In an Offer of Proof filed by Assistant U.S. Attorney Marcia K. Hurd, the government stated it would have proved at trial the following:
On August 7, 2011, at approximately 2:00 a.m., the Billings Police Department received a complaint of a suspicious vehicle in the 2300 block of Avenue C. Responding officers ultimately encountered four persons, one of whom was identified as NICHOLSON. Officers recovered two guns with obliterated serial numbers, one of which was taken from NICHOLSON's person. The gun was a Ruger P85 9mm semi-automatic pistol. When questioned, NICHOLSON admitted that the gun taken from his person was his but claimed that the other gun and the methamphetamine, LSD, and drug paraphernalia in the car were not his. He also admitted that he was addicted to methamphetamine.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that NICHOLSON will likely serve all of the time imposed by the court. In the federal system, NICHOLSON does 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 Bureau of Alcohol, Tobacco, Firearms and Explosives.
Rapid City Man Indicted for Failing to Update Sex Offender RegistrationRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota man was indicted by a federal grand jury for failing to update his sexual offender registration as required.
Seth Between Lodges, 31, was indicted on November 19, 2012 for Failure to Register. He appeared before U.S. Magistrate Judge Veronica L. Duffy on March 5, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 10 years’ imprisonment and/or a $250,000 fine. The charge is merely an accusation and Between Lodges is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Between Lodges was remanded to the custody of the U.S. Marshal. A trial date has not been set.
Portsmouth Man Sentenced to 240 Months in Analogue Drug Distribution ConspiracyRead the Press Release
NORFOLK, Va. – Michael Lee Haddock, 32, of Portsmouth, Va., was sentenced to a statutory maximum of 240 months in prison and three years of supervised release for conspiring to distribute analogue drugs for over a year using the internet and the United States Postal Service.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; John P. Torres, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Washington, D.C.; Keith A. Fixel, Inspector in Charge of the Charlotte Division of the United States Postal Inspection Service; and Chief Edward Hargis of the Portsmouth Police Department, made the announcement after the sentence was returned.
Michael Haddock was charged under a criminal information and entered a guilty plea on December 5, 2012 to conspiring to distribute analogues of controlled substances, which Haddock had been importing from China for over a year. Analogue drugs, often called “research chemicals” or “bath salts,” typically have only slightly different chemical structures to a Schedule I or II drug and are created to attempt to avoid bans by state and federal governments. In addition to a similar chemical structure, analogue drugs have a similar or greater effect on the human body than the scheduled drug when ingested. Haddock was ordering analogues drugs, such as Methylone (now scheduled), 4-FMA, MXE, 2C-C, 2C-E, 2C-I, 4-MEC, Butylone, Ethylone, Pentylone, and multiple other substances. The total amount of drugs attributed to Haddock, according to court documents, was over 27 kilograms of analogues or controlled substances in the year-long conspiracy.
Haddock had used multiple websites and email addresses to receive orders for analogue drugs, which he would package in his Portsmouth home and send throughout the United States using the United States Postal Service. Multiple powders, scales, spoons, and packaging materials were located in Haddock’s home in February 2012. In addition, there were two firearms stored with the drugs.
This case was investigated by HSI’s Hampton Roads Border Enforcement Security Task Force (HR-BEST), the Portsmouth Police Department and the United States Postal Inspection Service. Special Assistant United States Attorney Amy E. Cross is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Pittsburgh Man Gets Time-Served Sentence of 9 Months Incarceration for Passing Forged ChecksRead the Press Release
PITTSBURGH, Pa. - A resident of Allegheny County has been sentenced in federal court to a nine month, time-served sentence on his conviction of making and uttering counterfeit and forged checks of an organization, United States Attorney David J. Hickton announced today.
United States District Judge Joy Flowers Conti imposed the sentence on Darryl Kennedy, 46, of Pittsburgh, Pa.According to the information presented to the court, from Sept. 22, 2011 through Oct. 3, 2011, Kennedy negotiated counterfeit checks.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Postal Inspection Service, the United States Secret Service and the Financial Crimes Task Force of Western Pennsylvania for the investigation leading to the successful prosecution of Darryl Kennedy.
Pennsylvania Men Wanted in Canada for Alleged Violent Acts Committed at the 2010 G-20 Economic Summit in Toronto ExtraditedRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that two Pennsylvania men wanted in Canada for their alleged violent acts committed at the 2010 G-20 Economic Summit held in Toronto have been extradited to face charges in Canada.
According to United States Attorney Peter J. Smith, pursuant to an extradition treaty between the United States and Canada, Richard Dean Morano, and Kevin Chianella, both of Lackawaxen, Pennsylvania, were arrested.
Morano was arrested, without incident, by the United States Marshals Service for the Middle District of Pennsylvania on February 21, 2013. Chianella surrendered to the United States Marshals Service on February 28.According to Canadian court documents, Morano, a United States citizen, is alleged to have committed riotous acts at the G-20 Economic Summit on June 26, 2010. Canadian authorities have charged Morano with Mischief over $5,000(6 counts); Intimidation of Justice System participant; Obstructing a peace officer; Assaulting a peace officer with a weapon; Mischief endangering life(3 counts); Disguise with intent to commit an indictable offense and Theft. A warrant for his arrest was issued by the City of Toronto, Province of Ontario on March 4, 2011.
According to Canadian court documents, Chianella, a United States citizen, is alleged to have committed riotous acts at the G-20 Economic Summit on June 26, 2010. Canadian authorities have charged Chianella with Mischief over $5,000(21 counts); Attempted mischief(3 counts); Intimidation of Justice System participant(2 counts); Obstructing a peace officer; Assaulting a peace officer with a weapon; Assault with a weapon; Assault; Mischief endangering life(12 counts); Attempt mischief endangering life(2 counts); Arson; Break and enter with intent to commit an indictable offence; Disguise with intent to commit an indictable offence; and Theft(3 counts). A warrant for his arrest was issued by the City of Toronto, Province of Ontario on March 4, 2011.
Both men waived their extradition rights and were turned over to Canadian authorities Tuesday.
Assistant U.S. Attorney William A. Behe in the Harrisburg office of the U.S. Attorney handled the filing of the extradition complaints and compliance with the extradition treaty. Assistant U.S. Attorney Francis P. Sempa in the Scranton office of the U.S. Attorney handled the court proceedings before Chief U.S. Magistrate Judge Martin C. Carlson and U.S. Magistrate Judge Thomas M. Blewitt.
Parkville Man Indicted in Plot to Export Industrial Products and Services to IranRead the Press Release
Allegedly Conspired to Violate the U.S. Embargo Against IranGreenbelt, Maryland - A federal grand jury has indicted Ali Saboonchi, age 32, a U.S. citizen residing in Parkville, Maryland, and Arash Rashti Mohammad (Rashti), age 31, a citizen and resident of Iran, on charges of conspiring to export, and exporting, American manufactured industrial products and services to Iran. The indictment was returned on March 4, 2013 and unsealed today upon Saboonchi’s arrest.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
The International Emergency Economic Powers Act authorizes the President of the United States to impose economic sanctions on a foreign country when the President declares a national emergency. In 1995, the President issued a series of Executive Orders declaring that the actions and policies of the Government of Iran constituted a national emergency. In order to deal with that threat, the President imposed economic sanctions against Iran, to include a trade embargo (the Iran Trade Embargo). In order to implement the Iran Trade Embargo, the U.S. Department of the Treasury promulgated regulations that prohibit the export, sale or supply to Iran of any goods or services from the United States without prior authorization.
The five count indictment alleges that from November 2009 to the present, Saboonchi and Rashti conspired to evade the Iran Trade Embargo by exporting American manufactured industrial goods and services to Iranian businesses. Rashti, located in Iran, had Saboonchi in Maryland create and operate Ace Electric Company for the purpose of obtaining goods to be sent to Iran. Rashti, who operated businesses in Tehran, Iran and the United Arab Emirates (UAE), allegedly solicited purchase orders and business from customers in Iran for industrial parts and components manufactured in America, including:
- two cyclone separators, which are used in pipelines to separate impurities such as sand from liquids, for $2,114.53;
- six thermocouples, which are used to measure temperatures of liquids and gasses in industrial applications in the chemical and petrochemical fields, for $1,284;
- 10 stainless steel filter elements, which are used primarily in the oil and gas industry and can be used in water plants, hydrocarbon plants and nuclear plants, for $151.53;
- four bypass filters, for $1,911.03;
- three flow meters, which are used primarily in industrial applications to measure the flow of water but could be adjusted to measure other liquids and gasses, for $6,224.88;
- three actuator springs, which are used to control the flow rate of a liquid, for $112.07;
- numerous industrial parts, including hydraulic valves and connectors, for $7,067; and
- liquid pumps and valves, which have oil, gas, energy, aerospace and defense applications, for $2,320.48.
The indictment alleges that Saboonchi obtained price quotes and paid for these items, and took delivery of most of the goods, which he then shipped to co-conspirators in UAE and in at least one case, China. Rashti would repay Saboonchi for the goods and further arrange for the entities in the UAE and China to send the goods on to him and his customers in Iran. The Defendants did not obtain authorization to export the products.
Saboonchi faces a maximum sentence of 20 years in prison for the conspiracy and on each of four counts for illegal export to an embargoed country. Saboonchi has his initial appearance today in U.S. District Court in Greenbelt and is detained pending a detention hearing scheduled for Wednesday, March 13, 2013, at 2:00 p.m. Rashti is believed to be living in Iran.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI and HSI Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Gregory Welsh, who is prosecuting the case.
Owner of Seafood Distribution Business, Vinh Q. Tran, Sentenced for BriberyRead the Press Release
VINH Q. TRAN, age 63, a resident of Cutoff, Louisiana, was sentenced today in federal court by U.S. District Court Judge Nannette Jolivette Brown, to six months home confinement followed by three years probation for bribing a public official, announced U. S. Attorney Dana J. Boente.
According to court documents, on January 5, 2012, TRAN pled guilty to one count of a bill of information admitting that on or about August 2007 until on or about April 2011, he bribed a public official of the United States Internal Revenue, with the intent to influence an IRS audit being conducted of his seafood distributing business. TRAN paid $6,000 cash and other things of value to the public official.
The case was investigated by the Department of the Treasury, Treasury Inspector General for Tax Administration. The case was prosecuted by Assistant United States Attorney Julia K. Evans.Orange County Doctor Convicted of Six Counts of Health Care Fraud in Multi-Million Dollar Scam Involving Durable Medical EquipmentRead the Press Release
LOS ANGELES – A federal jury has convicted a Buena Park doctor for participating in a health care fraud scheme involving unnecessary procedures and prescriptions that led to Medicare paying out nearly $3 million on fraudulent claims for durable medical equipment and nutritional supplies.
Following a five-day trial, Dr. Augustus Ohemeng, 62, was found guilty yesterday afternoon of six counts health care fraud.
While serving as medical director at Pacific Clinic in Long Beach, Ohemeng and others recruited Medicare patients and billed the national healthcare program for office visits that typically included unnecessary tests and procedures. The evidence presented at trial showed that Ohemeng also generated fraudulent prescriptions for medical equipment, power wheel chairs and enteral nutritional supplies, prescriptions that were sold to medical supply companies that used the fraudulent documents to bill Medicare for millions of dollars of unnecessary and undelivered medical supplies. “Nearly all, if not all, of the wheelchair prescriptions Ohemeng and [George Tarryk, another doctor who worked at Pacific Clinic] signed were written for people who could walk,” according to court documents.
Over the course of four years, Ohemeng signed hundreds of these fraudulent prescriptions, many of which were blank so his office manager could fill in the details.
As a result of the fraudulent conduct involving Ohemeng and his co-conspirators, which took place from February 2005 through September 2009, $5.6 million in fraudulent claims were submitted to Medicare, which paid approximately $2.97 million.
As a result of yesterday’s guilty verdicts, Ohemeng faces a maximum statutory sentence of 60 years in federal prison when he is sentenced on June 17 by United States District Judge Christina A. Snyder.
Ohemeng was among 10 defendants – including two doctors and a nurse – who were charged as a result of an investigation into Pacific Clinic, Ivy Medical Supply in Anaheim and Santos Medical Supply in South Los Angeles. All 10 defendants, including the owner of Ivy Medical Supply, have now been convicted, either as the result of guilty pleas or jury verdicts.
The investigation in this case was conducted by the Federal Bureau of Investigations and the Office of Inspector General for the U.S. Department of Health and Human Services.
Release No. 13-033
Operator of Temporary Employment Agencies with Contracted Services in Scranton and Wilkes-Barre SentencedRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Ethan Nguyen, age 34, of Phoenixville, Pennsylvania was sentenced today by U.S. District Court Judge Edwin M. Kosik to a 12 month plus one-day term of imprisonment, two years of supervised release and a $300 fine. Judge Kosik further ordered that Nguyen pay $45,128 in restitution to the Pennsylvania Department of Unemployment Insurance.
According to United States Attorney Peter J. Smith, beginning in 2007 Ethan Nguyen operated Four Seasons Services, a temporary employment agency with offices in Philadelphia, Pennsylvania, and contracted with businesses in the Scranton and Wilkes-Barre area to provide day labor employees.
Together with co-defendants, Andri Gunawan and Eleni Nguyen, the employment agency contracted with various third party businesses to provide temporary, day labor employees. The co-defendants would fulfill these contracts by hiring illegal aliens and paying the illegal aliens cash “under the table,” failing to pay various federal, state and local taxes, fees or compensation insurance. In this way, the temporary employment agency was able to greatly increase its profits for providing such temporary labor.
Four Seasons Services was later changed to business names Direct Staffing Services(DSS), Express Staffing Services(ESS) and First Choice Staffing(FCS).
Ethan Nguyen, Andri Gunawan and Eleni Nguyen were charged in separate criminal Informations. All three pleaded guilty. Eleni Nguyen is scheduled for sentencing on March 19, 2013. Gunawan is scheduled for sentencing on April 4, 2013.
The joint investigation was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), United States Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations, the Pennsylvania State Police, and United States Department of Health and Human Services. The case is assigned to Assistant United States Attorney Todd K. Hinkley.
Montgomery Man Arrested for Bomb ThreatsRead the Press Release
Montgomery, Alabama - Franklin Otis Boiner, 58, of Montgomery, Alabama was arrested today for calling in a bomb threat to a Montgomery courthouse yesterday, announced George L. Beck, United States Attorney for the Middle District of Alabama.
According to the complaint filed in federal court, on March 5, 2013, at approximately 7:49 a.m., the Montgomery 911 Call Center received a telephone call from a male stating that there would be two bombs going off at the District Court at 9:30 a.m. Because there is a district court in both the federal and state courthouses, both courthouses were evacuated. Bomb technicians and bomb detection dogs were used to clear the courthouses before anyone was allowed to return to the buildings. Through call tracing and fingerprint analysis, law enforcement was able to determine that Boiner placed the phone call. According to the complaint, Boiner was scheduled to be at a court hearing in the Montgomery County Courthouse at 8:00 a.m. on March 5, 2013, the same day he called in the bomb threat.
“I would like to commend Sheriff Marshall and his office for their efficient, yet thorough investigation and arrest in this bomb threat case, stated U.S. Attorney Beck. Law enforcement’s quick response and arrest should serve as a warning that threats such as this one will be taken seriously. The rule of law has to be administered by the court system. Therefore, we have to be vigilant in protecting our court system.”
Special Agent in Charge of Alcohol, Tobacco and Firearms (ATF), Jeffrey L. Fulton, stated: “This investigation culminated as a result of the collaborative effort to ATF’s commitment to public safety.”
An arrest warrant and complaint merely allege that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Boiner faces a maximum potential sentence of 5 years in prison. He is also subject to fines and a period of supervised release if convicted.
The case was investigated by the Federal Bureau of Investigation, the Joint Terrorism Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Montgomery County Sheriff’s Department and the Montgomery Police Department. Assistant United States Attorney Denise Simpson is prosecuting the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Mohammad Jahangir Miah Sentenced to 21 Months in Federal Prison for Producing Faudulent Indentification DocumentsRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that MOHAMMAD JAHANGIR MIAH, age 38, a citizen of Bangledesh, was sentenced to 21 months in prison today in the United States District Court for the Northern Mariana Islands. MIAH was sentenced after pleading guilty to conspiracy to unlawfully produce and transfer identification document, regarding the production of fraudulent CNMI driver’s licenses. The charge stems from an Indictment filed on January 10, 2011 against MIAH, William A. Hocog, Tahira Dolores S. Miah, Hongmei Sun, and Hui Qiang Yan. The other four defendants also pled guilty in this case.
The sentencing is the result of a day-long hearing before Chief Judge Ramona V. Manglona. In determining the sentence, Chief Judge Manglona considered MIAH’s criminal activities both in local and federal court. She also found that he had obstructed justice by not being truthful to the United States Probation Office during the preparation of the Presentence Report. Chief Judge Manglona also concluded that MIAH was an organizer of this criminal activity under the U.S. Sentencing Guidelines.
MIAH was immediately remanded to the custody of the United States Marshals Service and will begin serving his 21-month sentence with credit for time served. He also was ordered to forfeit $960.00.
The case was investigated by the Homeland Security Investigations Agency (HSI) and the Federal Bureau of Investigation (FBI). The case was prosecuted by Assistant United States Attorney Stephen F. Leon Guerrero and Assistant United States Attorney Kirk W. Schuler.
Mission Man Pleads Guilty to LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that Eddie Tunstall, age 33, of Mission, South Dakota appeared before U.S. District Judge Roberto A. Lange on March 6, 2013 and pled guilty to Larceny. The maximum penalty upon conviction is 5 years in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 special assessment.
The conviction stems from an incident that took place on December 29, 2011 when Tunstall entered the Turtle Creek Crossing store in Mission, took U.S. Currency from the store’s safe, and then left.
The investigation was conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Tim Maher.
A presentence investigation was ordered and a sentencing date was set for May 29, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Michigan Man Pleads Guilty to Failure to Register as A Sex OffenderRead the Press Release
On March 6, 2013, Andrew C. Henley, a twenty-five year old Michigan man, pled guilty in Federal District Court, in East St. Louis, to Failure to Register as a Sex Offender, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Henley is scheduled for sentencing on July 15, 2013. He faces a term of imprisonment of not more than ten (10) years, a fine of up to $250,000, or both, a term of supervised release of five (5) years to life of supervised release after his prison term, and a mandatory special assessment of $100.
Henley was required to register as a sex offender under both Illinois law and the federal Sex Offender Registration and Notification Act (SORNA) because he was convicted of Aggravated Criminal Sexual Abuse on September 30, 2005, in Madison County, Illinois. After registering as a Sex Offender in the State of Illinois on July 11, 2011, Henley traveled to the State of Michigan. He was required to register as a sex offender in the State of Michigan or update his registration with the State of Illinois within three days of his move. Henley admitted that he knowingly failed to comply with either of these requirements after traveling in interstate commerce, thus violating SORNA.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the United States Marshal Service. The case is assigned to Assistant United States Attorney Daniel T. Kapsak.
McLaughlin Man Indicted for Failure to AppearRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota man has been indicted by a federal grand jury for Failure to Appear for his sentencing hearing. The hearing was United States v. Ivan Looking Horse, Jr., in which Looking Horse pled guilty to the crime of Involuntary Manslaughter.
Ivan Looking Horse, Jr., age 25, was indicted by a federal grand jury on February 13, 2013. He appeared before U.S. Magistrate William D. Gerdes on March 1, 2013 and pled not guilty to the new indictment for Failure to Appear. The maximum penalty upon conviction is 5 years in custody, a $250,000, or both; 3 years of supervised release; and a $100 special assessment. Restitution may also be ordered. The charge is merely an accusation, and Looking Horse, Jr., is presumed innocent until and unless proven guilty.
Looking Horse’s conviction for Involuntary Manslaughter arose from an incident in August 2009 when he failed to stop at an intersection on a highway near Kenel, and his vehicle then struck the Standing Rock Sioux Community Transportation Bus, resulting in the death of a passenger on the bus.
The investigation is being conducted by the U.S. Marshal Service. Assistant U.S. Attorney Mikal Hanson is prosecuting the case. Looking Horse, Jr., was remanded to the custody of the U.S. Marshal. A trial date has not been set.
MS-13 Gang Leader Pleads Guilty to Racketeering and Murder Conspiracy ChargesRead the Press Release
Hector Aleman Lemos, the former leader of the Flushing, Queens, chapter of the violent international gang La Mara Salvatrucha, also known as “MS-13,” pleaded guilty today to racketeering and murder conspiracy charges. Lemos entered his plea before United States District Judge Nicholas G. Garaufis at the federal courthouse in Brooklyn. As part of his plea, Lemos agreed to a sentence of 30 years’ imprisonment.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York Field Office; and Charles Gardner, Commissioner, City of Yonkers Police Department.
According to the indictment and other court filings, Lemos, known in the gang as “Diablito,” was alleged to have been the leader of a chapter of the gang that committed a series of violent crimes, including murder, murder conspiracy and attempted murder, in Flushing, Queens and elsewhere. Among other crimes, Lemos was charged with murdering 25-year-old John Halley in Yonkers, New York. Lemos believed, incorrectly, that Halley was a member of a rival gang when he shot him on the street. As part of his plea, Lemos admitted that he was a member of MS-13 and that he participated in the murder of Halley, as well as the shooting of a 13-year-old boy who had been standing on the stoop of a house in Flushing, New York that Lemos believed to be a rival gang location.
This conviction is the latest of the more than 120 convictions of MS-13 soldiers and leaders in the Eastern District of New York over the past decade. MS-13 is a violent, transnational gang, based in El Salvador, which has engaged in narcotics trafficking, robbery, extortion, murder and other crimes in cities throughout the United States and Central America. The gang has had a strong presence in immigrant communities in Queens and Long Island.
“Lemos was the leader of a gang that turned our streets into a shooting gallery, and killed innocent bystanders in its bid to dominate the streets,” said United States Attorney Lynch. Lemos’s conviction underscores this Office’s ongoing commitment to eradicating MS-13’s influence in our communities and seeking justice for the gang’s victims and their families. We will continue to vigorously prosecute members of the gang and work to dismantle its operations in this District.” Ms. Lynch expressed her grateful appreciation to the City of Yonkers Police Department for its invaluable assistance in this investigation.
“The defendant in this case indiscriminately brought or threatened violence against rival gang members and innocent civilians alike. HSI is proud to continue to partner with the United States Attorney’s Office to target violent transnational gang members who threaten the safety of New York communities,” stated HSI Special Agent-in-Charge Hayes.
The government’s case is being prosecuted by Assistant United States Attorneys Gina M. Parlovecchio and Darren A. LaVerne.
The Defendant:
HECTOR ALEMAN LEMOS, also known as “Diablito”
Age: 32Luzerne County Resident Charged with Possession OfRead the Press Release
Ammunition By A Convicted Felon And With Being A Fugitive From Justice
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a criminal Information has been filed against Stanley Backus, age 33, of Wilkes-Barre, Pennsylvania charging him with possession of a ammunition by a prohibited person.
According to United States Attorney Peter J. Smith, Backus was previously convicted of four prior felonies and was wanted by Philadelphia County for a probation violation and a Meghan’s law registry violation. The offenses included the criminal Information filed Wednesday allegedly occurred in July 2011 in Wilkes-Barre, Luzerne County.
This case was the result of a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Wilkes-Barre and Kingston Police Departments.
Prosecution is assigned to Assistant United States Attorney Amy C. Phillips.Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is 10 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Lower Brule Man Sentenced for Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota man convicted of Sexual Abuse was sentenced on March 6, 2013 by U.S. District Judge Roberto A. Lange. Martin Charger, age 37, was sentenced to 151 months in prison, 5 years of supervised release and $100 to the Victim Assistance Fund.
Charger was indicted for Aggravated Sexual Abuse of a Child by a federal grand jury on July 10, 2012. The charge stems from an incident occurring during the calendar year 2007, when Charger was in an intimate relationship with the victim’s mother. Charger intimidated the victim, who was under the age of 12, to engage in sexual acts. The victim engaged in this conduct because she was in fear of Charger and afraid of his size. Charger pled guilty to Sexual Abuse on December 18, 2012.
The investigation was conducted by the Federal Bureau of Investigation and Assistant U.S. Attorney Meghan N. Dilges prosecuted the case. Charger was immediately turned over to the custody of the U.S. Marshal.