Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 22 January 2013
Nebraska Man Sentenced for AssaultRead the Press Release
US Attorney Brendan V. Johnson announced that a Valentine, Nebraska, man convicted of Assaulting a Federal Officer was sentenced on January 17, 2013, by US District Judge Roberto A. Lange. Blake Bordeaux, age 22, was sentenced to 148 days in custody with credit for time served and $25 to the Victim Assistance Fund.
The conviction stems from an incident that took place on August 27, 2011, when Bordeaux assaulted a federal officer.
The investigation was conducted by Rosebud Sioux Tribe Law Enforcement Services. Assistant United States Attorney Marie H. Ruettgers prosecuted the case.
Bordeaux was immediately turned over to the custody of the US Marshal.
Murder Charges Added for 2011 New Year Day Robbery and Killing on Red Lake Indian ReservationRead the Press Release
MINNEAPOLIS—A federal superseding indictment unsealed earlier today charges a previously indicted man with murder in connection to the deaths of a couple on the Red Lake Indian Reservation on New Year’s Day 2011. Twenty-one-year-old Kevin John Needham, previously charged with one count of robbery, has now also been charged with two counts of murder in the first degree and two counts of murder in the second degree. The superseding indictment, originally filed under seal on January 15, 2013, was unsealed today, after Needham’s initial court appearance on the murder charges.
The charges against Needham’s four co-defendants remain unchanged. All four were indicted on two counts of murder in the first degree, two counts of murder in the second degree, and one count of robbery. The four co-defendants include Geshik-O-Binese Martin, age 30; Edward McCabe Robinson, age 28; David John Martin, age 46, of Columbia Heights; and George Allen Martin, age 24, of Red Lake. All four are in federal custody.
The original indictment alleges that on January 1, 2011, Needham, Robinson, and the Martins killed Craig David Roy and Darla Ann Beaulieu while stealing money and illegal drugs from Roy’s reservation residence. The bodies of Beaulieu and Roy were found in the remains of the house, which was destroyed by fire on that day. Autopsies determined that both victims were killed as a result of multiple stab wounds and not the fire itself.If convicted of murder, Needham, Robinson, and the Martins face potential maximum penalties of life in federal prison. They also face a potential maximum penalty of 15 years in federal prison on the robbery charge. Because the federal criminal justice system does not have parole, convicted offenders spend virtually their entire prison sentences behind bars. Of course, actual sentences are determined by federal district court judges.
This case is the result of an investigation by the Federal Bureau of Investigation and the Red Lake Tribal Police Department, with assistance from the Minnesota Bureau of Criminal Apprehension and the State Fire Marshal. It is being prosecuted by Assistant United States Attorneys Deidre Y. Aanstad and Nathan P. Petterson.
Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Minneapolis Felon Sentenced for Possessing A .32-caliber PistolRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 34-year-old Minneapolis felon was sentenced for possessing a .32-caliber pistol. United States District Court Judge Joan N. Ericksen sentenced Bryant Duane Griffin to 240 months in prison on one count of being a felon in possession of a firearm. Griffin was indicted on May 15, 2012, and was convicted on September 14, 2012.
The evidence presented at trial proved that on March 25, 2012, Griffin possessed the gun while on a Metro Transit bus. On that date, police received a call at approximately 1:00 a.m. The caller reported that a man with a gun was riding a city bus. Officers located the bus and the man. He was later identified as Griffin. They found the gun under a seat in front of him.
Because he is a felon, Griffin is prohibited under federal law from possessing a firearm at any time. His prior Hennepin County convictions include fifth-degree possession of a controlled substance (1999) and attempted terroristic threats (2001). In addition, he was convicted of second-degree sale of a controlled substance in Stearns County (2008) and third-degree sale of a controlled substance in Benton County (2008). Since three of those prior offenses were crimes of violence or major drug crimes, Griffin was subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in federal prison. Since the federal criminal justice system does not have parole, Griffin will serve virtually his entire sentence behind bars.
This case was the result of an investigation by the Brooklyn Park Police Department, the Metro Transit Police Department, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorneys John E. Kokkinen, Kimberly A. Svendsen, and Surya Saxena.Man Indicted for Illegal ReentryRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a grand jury returned a one-count indictment charging Audiel Sanchez-Colin, 37, with illegally reentering the United States following his deportation.
The indictment alleges that Sanchez-Colin was previously removed or deported from the United States to Mexico on February 22, 2008, and October 7, 2009.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Phillip J. Tripi, following investigation by agents of the U.S. Border Patrol.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Las Vegas Man sentenced to prison for interstate travel to promote prostituutionRead the Press Release
Anchorage, Alaska B U.S. Attorney Karen L. Loeffler announced today that a man from Las Vegas was sentenced in federal court in Anchorage for one count of Interstate Travel to Promote Prostitution. Brandon Michael Gadson traveled to Anchorage in July of 2010, with three women, the youngest of whom was 19 years old, and another man for the purpose of trafficking the women on the internet. After arriving, Gadson paid for the hotel rooms for two of the women, and his credit card was used to post explicit advertisements on the internet that the women were available for commercial sex acts. The Vice Squad of the Anchorage Police Department conducted a “sting” operation and Detectives with that unit arrested the three women in less than an hour from the start of the operation. When arrested, Gadson had approximately $10,000 in his pocket, but the three women had only insignificant amounts of cash in their possession.
Gadson, 32, of Las Vegas, Nevada, was sentenced January 18, 2013, by United States District Court Judge Sharon M. Gleason, to 18 months in prison, to be followed by three years of supervised release. During his period of supervised release, Gadson is restricted from use of the internet without his probation officer’s permission. The sentence imposed was in accordance with the United States Sentencing Guidelines for this crime.
According to Assistant U.S. Attorney Daniel R. Cooper, Jr., Gadson appeared in at least three videos published on YouTube, all of which lyricized the degradation of women through sex trafficking, and promoted the exploitation of women through physical force. In his sentencing remarks, Cooper noted the Alaska State Legislature’s recent recognition that prostitution is in reality sex trafficking.
In imposing sentence, Judge Gleason termed Gadson’s conduct demeaning to women, and called his crime reprehensible. Judge Gleason found that Gadson was a long time trafficker, essentially living off of women, and so proud of his conduct that he had the word “Pimp” tattooed on the side of his neck. Judge Gleason noted that the tattoos and videos in which Gadson appears are despicable ways to project his sense of self to his family and children. Judge Gleason also said that Gadson’s conduct towards the women he had trafficked, and the videos in which he appeared, were despicable, as was his living off them. Moreover, Judge Gleason found that the assaultive behavior described in the police reports with respect to Jane Doe 1 was egregious.
U.S. Attorney Loeffler stated: “The United States Attorney’s Office, in conjunction with the Anchorage Vice Squad and the Federal Bureau of Investigations’ Innocence Lost Task Force, has prioritized the investigation and prosecution of sex trafficking, with particular emphasis on trafficking and exploitation of children and Native Alaskans. We will work with our State, Local and Federal partners to continuously and systematically attack this most exploitive of crimes.”
Ms. Loeffler commends the Vice Squad of the Anchorage Police Department for the investigation of this case, with the support of the Federal Bureau of Investigations’ Innocence Lost Task Force.
Justice Department Sues to Stop South Carolina Tax Return Preparers Engaged in Earned Income Credit SchemeRead the Press Release
The United States has asked a federal court in Florence, S.C., to permanently bar Susann Allen of Darlington County, S.C., and Rachel D. Watson of Florence County, S.C., from preparing federal income tax returns for others, the Justice Department announced today. According to the government complaint, Allen and Watson have prepared federal income tax returns at a number of businesses in South Carolina including, most recently, Fludd’s Express Tax Service and Gold Valley Pawn. The complaint alleges that they have prepared returns that unlawfully understate income tax liabilities and overstate refunds through a variety of schemes.
The government complaint alleges that Allen and Watson prepared returns that unlawfully claim the Earned Income Tax Credit by reporting fictitious Schedule C businesses or business income or fictitious dependents. The complaint also alleges that Allen and Watson fabricated or inflated deductions. According to the complaint, the Internal Revenue Service has examined 32 returns prepared by Watson and six prepared by Allen and found that every single one overstated their client’s refund. The total excessive refund of those returns is alleged to be greater than $100,000. Altogether, the government complaint alleges that Allen’s and Watson’s activities may have resulted in millions of dollars of loss to the United States.
Over the past decade, the Justice Department’s Tax Division has obtained hundreds of injunctions to stop tax fraud promoters and dishonest tax return preparers. Information about these cases is available on the Justice Department website.
Related Materials:
United States v. Susann Allen, et al.
Complaint (PDF)Indiana Resident Sentenced to Serve 34 Years in Federal Prison for Child Exploitation CrimesRead the Press Release
DENVER – Steven Raines, age 35, of Fort Wayne, Indiana, was sentenced today by U.S. District Court Judge R. Brooke Jackson to serve 412 months (over 34 years) in federal prison for attempted coercion and enticement (to engage in unlawful sexual activity with a minor child) and distribution of child pornography, United States Attorney John Walsh and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Kumar Kibble announced. Following his prison sentence, Raines was ordered to serve a life time on Supervised Release. He appeared at the hearing in custody, and was remanded immediately after.
Raines was first charged by Criminal Complaint on July 2, 2012. He was indicted by a federal grand jury in Denver on July 9, 2012. He pled guilty on October 24, 2012. He was sentenced on January 22, 2013.
According to the stipulated facts contained in the plea agreement, on April 1, 2012, an HSI Special Agent based in Glenwood Springs, Colorado was chatting online in an undercover capacity. Specifically, the agent’s undercover persona was that of a single mother of two daughters under the age of 16. The agent entered a chat room, accessible by anyone, whose topic focused on sex with children. While in the chat room the undercover agent engaged in a chat with an individual who expressed interest in having sex with the undercover and the two minor children. The individual went on to say that he had been searching for 20 years for someone like the undercover who would provide sexual access to her children, and that he discovered that he was a “pedo” when he was 15. He also said that he had been previously accused of molesting a child to whom he had access, and that he previously attempted to meet someone like the undercover agent in person, but the person failed to show up.
The individual continued chatting and emailing the undercover using his smart phone for the next three months. He told the undercover that he did not have a computer. Eventually investigators identified the individual as 35-year old Steven Raines, who lived in Fort Wayne, Indiana. As the chats between Raines and the undercover progressed, Raines began to send pictures, some of which depicted child pornography. Eventually Raines and the undercover agent began to make plans for him to travel to Colorado in order to have sex with, or rape, the two young girls. The defendant’s main interest, however, was one of the children who was under the age of 6. He discussed wanting to father a child with the undercover agent. Raines also discussed other children he knew from church or his neighborhood, in whom he had a sexual interest and with whom he attempted to have some sort of contact.
As the travel plans were finalized, Raines stated that he was going to bring his child pornography collection with him to Colorado in order to “teach” the girls and stated an interest in producing child pornography with the undercover agent and the two minor girls. The content of the child pornography he was bringing featured mostly prepubescent females engaged in sexual acts and included sadistic or masochistic conduct. During the communications between Raines and the agent he made statements about both of his children, and about sexually molesting a minor child to whom he had access, and that he produced images of child pornography of his sexual abuse of that child.
The defendant began his travel to Colorado on June 29, 2012. He sent texts to the undercover agent during the duration of the trip. On June 30, 2012, near Topeka, Kansas, the defendant’s van broke down. He rented a vehicle to complete his journey. On June 30, 2012, the defendant arrived at a residence in Garfield County, Colorado, which was the address provided to him by the undercover agent. After his arrival he was taken into custody. Agents and officers seized the defendant’s cell phone, which has the capacity to take photographs and video, contained approximately 130 images and 84 videos of child pornography. During a lawful search of Raines’ home, agents and officers found various discs containing child pornography. The National Center for Missing and Exploited Children identified 23 known series of child pornography featuring real child victims among the images the defendant had on his cell phone and in his email.
“Sexually exploiting children carries extraordinarily severe penalties – decades in federal prison, followed by a life term of Supervised Release,” said U.S. Attorney John Walsh. “It is a top priority of the U.S. Attorney’s Office and the Department of Justice to protect children by prosecuting predators such as Raines.”
“This significant prison sentence removes another child predator from the streets for decades to come, which helps protect children everywhere,” said Kumar C. Kibble, special agent in charge of HSI Denver. “Unfortunately, there are many predators like Steven Raines who pretend to lead normal lives. But our HSI special agents, partnering with other law enforcement agencies, go to extraordinary lengths to help protect and rescue these child victims, while also targeting and prosecuting those who prey on them.”
This case was investigated by HSI and the Garfield County Sheriff’s Office. The HSI Resident Agent in Charge’s Office in Indianapolis, and the United States Attorney’s Office in Fort Wayne, Indiana, also played an important role in this investigation and prosecution.
Raines was prosecuted by Assistant U.S. Attorneys Michelle Heldmyer and ICE Special Assistant U.S. Attorney Lillian Alves with support from Assistant U.S. Attorney Alecia Riewerts Wolak.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit http://www.justice.gov/psc/ For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”
####
Huntington Man Sentenced to 2 Years in Federal Prison for Oxycodone Distribution SchemeRead the Press Release
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin announced today that a Huntington man was sentenced to two years in federal prison for aiding and abetting the possession with intent to distribute oxycodone. Rayshawn Allah Wells, 22, previously pleaded guilty in September 2012. Wells admitted that on April 14, 2010, he and an associate distributed approximately 2 ½ 80-milligram oxycodone pills to a confidential informant working with the U.S. 119 Task Force. Wells further admitted that on April 14, 2010, he and an associate distributed three 80-milligram oxycodone pills to an informant. Wells admitted that both illegal pill transactions occurred in Holden, Logan County, W.Va.
On April 14, 2010, members of the U.S. 119 Task Force executed a search warrant at a Holden residence and arrested the defendant and other known individuals. At the time the search warrant was executed, law enforcement agents seized approximately 127 80-milligram tablets. The defendant admitted that he had $1,040 cash on his person that included bills used in earlier controlled transactions.
Wells admitted that he and co-defendant Kawan Michael Wells brought oxycodone pills from Huntington, W.Va. to Logan County for the purpose of distributing them. Kawan Wells, 24, previously pleaded guilty to aiding and abetting the possession with intent to distribute oxycodone. Kawan Wells was sentenced in December 2012 to five years’ probation.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
The U.S. 119 Task Force conducted the investigation. Assistant United States Attorney Joshua Hanks handled the prosecution. The sentence was imposed by United States District Judge Thomas E. Johnston.
Huntington Couple Sentenced to Federal Prison for Illegal Firearm PossessionRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced today that a Huntington couple was sentenced to federal prison for illegal firearm possession. Steven Ray Pauley, 32, of Huntington, was sentenced to two and a half years in prison for being a felon in possession of a firearm. Pauley previously pleaded guilty September 2012. On June 11, 2012, the defendant was observed outside of Coaches Inn Motel in West Huntington in possession of a firearm. Officers with the Huntington Police Department and the ATF approached the defendant and found a loaded .38 caliber revolver on the defendant’s waistband. Pauley was arrested.
Steven Pauley was convicted in July 2003 in the Circuit Court of Cabell County of felony first degree robbery and did not have his rights to possess a firearm restored.
In a related matter, Pauley’s wife and co-defendant, Molly Sue Pauley, 41, of Huntington, was sentenced to three years and two months in prison for aiding and abetting a felon in possession of a firearm. Molly Pauley previously pleaded guilty in September 2012. Ms. Pauley admitted that on June 11, 2012, she illegally possessed a .38 caliber firearm. Ms. Pauley further admitted that she met Steven Pauley in the 800 block of 25th Street in Huntington and gave him the firearm. Ms. Pauley admitted that she was aware that her husband was prohibited from possessing a firearm because of a prior felony conviction.
Ms. Pauley was also prohibited from possessing firearms because of her January 2001 conviction in the Circuit Court of Wayne County (W.Va.) for attempt to commit a felony. Ms. Pauley was also previously convicted of theft of property in the Circuit Court of Hamblen County, Tennessee in November 2005 and felony theft of property in the Circuit Court of Montgomery County, Alabama in July 2009.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Police Department River Cities Gun Crimes Task Force. Assistant United States Attorney Joseph F. Adams handled the prosecutions. The sentences were imposed by United States District Chief Judge Robert C. Chambers.
The cases were brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Head of Alien Smuggling Organization Gets More Than 12 Years in Federal PrisonRead the Press Release
McALLEN, Texas – Jose Aguirre-Nunez, 46, the head of an extensive alien smuggling organization operating in and around Starr County to Harris County, Texas, has been sentenced to a total of 150 months in federal prison, United States Attorney Kenneth Magidson announced today. Another defendant, Higinio Barrientos-Perez, 43, who was a caretaker of the aliens while being held at a stash house in Roma, will be sentenced this Thursday.
Aguirre-Nunez pleaded guilty on March 22, 2007, to conspiracy to transport illegal aliens and conspiracy to commit money laundering and received respective sentences of 150 and 150 months to be served concurrently. Aguirre-Nunez, who is a permanent resident, is expected to face deportation upon completing their federal prison sentences.
Evidence proved that on June 30, 2005, Border Patrol (BP) agents discovered 26 aliens from Honduras and El Salvador at a house in Roma after one of them escaped and contacted law enforcement authorities. Agents arrested Barrientos-Perez after the aliens identified him as the person in charge of the stash house.
During the subsequent investigation, agents discovered that two days earlier BP agents found two Honduran aliens in the brush near Falfurrias. These Honduran aliens told agents that their guide left them and a female behind when the female could no longer continue walking and that the female alien died. The autopsy determined she had died of dehydration. The Honduran aliens stated they ran out of water while they walked in the brush looking for help and that in order to survive they had to drink their own urine. The investigation lead agents to the husband of the deceased female who told agents he contracted with Aguirre-Nunez to transport his wife from Honduras to Houston.
The evidence collected during the investigation revealed that the Aguirre-Nunez alien smuggling organization transported several hundred illegal aliens from Starr County to Harris County, Texas. Between 2001 to 2005, the organization received approximately $400,000 through Western Union and/or MoneyGram which represented the payment by family members for the smuggling of illegal aliens.
Aguirre-Nunez headed the organization and was responsible for contacting the Mexican alien smugglers, arranged for foot guides to cross the aliens into the United States and deliver them to stash houses in Starr County. Aguirre-Nunez also coordinated the transportation of the aliens to Harris County by hiring drivers to transport the aliens, foot guides to walk the aliens around the checkpoint and scouts to check for law enforcement while the aliens were being transported in vehicles.
Aguirre-Nunez and nine members of his organization were indicted for their role in this alien smuggling organization. All have pleaded guilty and been sentenced.
Marciano Andres Avellaneda, 29, was a foot guide that walked aliens around the border patrol checkpoint and Miguel Angel Alarcon-Candelario, was the foot guide that left the Honduran female behind in the brush who later died. Both, who are illegal aliens from Mexico, pleaded guilty to conspiracy to transport illegal aliens and were sentenced 54 and 105 months in prison, respectively.
Omar Wilfredo Guerrero-Sosa, 33, Rosalba Garcia-Perez, 38, also illegal aliens from Mexico, pleaded guilty to conspiracy to harbor illegal aliens and were sentenced to respective 44 and 80 month terms of imprisonment. Guerrero-Sosa was a guide that crossed the aliens into the United States and took them to the Roma stash house, while Garcia-Perez, was a scout for law enforcement as well as took over Aguirre-Nunez’s responsibilities when he was not in Starr County.
Lizzette Barrera-Moreno, a U.S. citizen from Harris County, and Myra Yesenia Villarreal, 31, Guadalupe Perez, 67, Soraya Barrera-Morales, 49, all of Starr County, Texas, all also pleaded guilty to conspiracy to harbor illegal aliens. Perez drove vehicles north of the Border Patrol checkpoint and left them by the side of the road for the aliens to use to travel to Harris County and was ordered to serve 78 months in prison. Villarreal was a scout for law enforcement, while Barrera-Morales took food to the aliens who were held at the stash house in Roma. Both Villarreal and Barrera-Morales also picked up money sent by the family of the illegal aliens through Western Union. They will serve 40 and 37 months in prison, respectively. Barrera-Moreno, who leased the stash house in Roma, was sentenced to three years probation.
The investigation was conducted by Homeland Security Investigations and was prosecuted by Assistant United States Attorney Anibal J. Alaniz.
Ft. Hall Woman Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Christopher A. Crofts announced today that on January 18, 2013, Echo Pocatilla, a 30-year-old enrolled Shoshoni-Bannock from Ft. Hall, Idaho, appeared in Federal District Court for sentencing before United States District Judge Scott Skavdahl on a single count of assault resulting in serious bodily injury. The charge carried a maximum penalty of ten years imprisonment, a $250,000.00 fine, or both; supervised release of not more than three years; restitution; and a $100.00 special assessment. Pocatilla was sentenced to 37 months imprisonment, to be followed by three years of supervised release and was ordered to pay a $100 special assessment and $12,034.00 in restitution. The charge stemmed from a stabbing which occurred on September 23, 2011, on the Wind River Indian Reservation. The case was investigated by the Bureau of Indian Affairs with assistance of the Federal Bureau of Investigation.
Frederick and Carey Gonzales Facing Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Frederick Gonzales, 42, and his wife Carey Gonzales, 36, both of Albuquerque, N.M., were arrested on federal child pornography charges on Jan. 18, 2013. The couple made their initial appearances in federal court in Albuquerque this morning. They remain in custody pending detention hearings which are scheduled for 1:30 p.m. tomorrow.
Frederick and Carey Gonzales previously were arrested on state child pornography charges on Jan. 11, 2013. At the time, Frederick Gonzales was the incoming president of Albuquerque’s Young America Football League (YAFL), and Carey Gonzales was employed as a kindergarten teacher’s aide by the Albuquerque Public Schools (APS). Since then, YAFL has removed Frederick Gonzales from his position with the organization, and APS has fired Carey Gonzales.
Frederick and Carey Gonzales are charged in federal criminal complaints that were filed on Jan. 18, 2013. Frederick Gonzales is charged with distribution, receipt and possession of visual depictions of minors engaged in sexually explicit conduct. If convicted of those charges, he faces a maximum penalty of not less than five years and not more than 20 years in prison. Carey Gonzales is charged with possession of visual depictions of minors engaged in sexually explicit conduct. If convicted, she faces a maximum penalty of ten years of imprisonment or twenty years of imprisonment if the child pornography depicts prepubescent children.
Charges in criminal complaints are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Charlyn E. Rees, and was investigated by the following members of the New Mexico Internet Crimes Against Children (ICAC) Task Force: the New Mexico Attorney General’s Office, the Bernalillo County Sheriff’s Office, the Albuquerque office of the FBI and the New Mexico Regional Computer Forensic Lab.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
-
Criminal Complaint
-
Criminal Complaint
-
Former Texas State Parole Officer Admits <br /> Taking Bribes from Assigned ParoleeRead the Press Release
WASHINGTON – A former Texas state parole officer pleaded guilty today in Dallas for taking bribes from one of her assigned parolees in exchange for not reporting his parole violations, announced Assistant Attorney General Lanny A. Breuer of the Department of Justice’s Criminal Division.
Nichelle Derricks, 37, of Cedar Hill, Texas, pleaded guilty to one count of honest services wire fraud before U.S. Magistrate Judge Renee Harris Toliver of the Northern District of Texas, who then recommends U.S. District Judge Ed Kinkeade accept the plea.
According to court documents, while serving as a Texas Department of Criminal Justice (TDCJ) parole officer, Derricks and one of her assigned parolees developed an improper relationship in which Derricks secretly used her official position with TDCJ to enrich herself and others by soliciting and receiving cash payments, gifts, furniture, household goods and items, food and beverages and other things of value from the parolee in exchange for favorable official action benefitting the parolee. The scheme, according to court documents, was conducted without the authorization, knowledge or approval of TDCJ and contrary to TDCJ procedures and requirements.
As part of her plea, Derricks admitted she repeatedly failed to report the parolee for violating the terms of his parole, including, among other things, failing to report him for traveling outside Texas without prior, written approval and for engaging in prohibited financial transactions.
Derricks faces a maximum potential penalty of 20 years in prison and a $250,000 fine on the honest services wire fraud charge. She is scheduled to be sentenced on April 24, 2013.
The case is being prosecuted by Trial Attorneys Edward P. Sullivan and Jeffrey E. Tsai of the Justice Department Criminal Division’s Public Integrity Section. The case was investigated by the FBI Dallas Field Office, with assistance from the U.S. Secret Service and the TDCJ Office of Inspector General.Former Niagara Falls Building Commissioner Pleads Guilty to Corruption ChargeRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Guy A. Bax, 66, of Niagara Falls, N.Y., pleaded guilty before U.S. District Judge Richard J. Arcara, to corruptly accepting gratuities in connection with his role as the Building Commissioner for the City of Niagara Falls. The charge carries a maximum penalty of 10 years in prison, a fine of $250,000 or both.
First Assistant U.S. Attorney James P. Kennedy, Jr., who is handling the case, stated that between 2007 and early 2009, the defendant, in his capacity as Acting Building Commissioner for the City of Niagara Falls, routinely recommended and promoted John Gross and his company, David Gross Contracting, to individuals and entities seeking permits and approvals from the city. Bax also created a perception that it would be in the best interest of those seeking permits from the City to use Gross and his company and if they did so, they would have an easier time obtaining the approvals they sought. In exchange for, and as a reward for Bax's practice of steering business to John Gross and David Gross Contracting, the defendant received, at no cost, various items of value from John Gross and David Gross Contracting. The items included home repairs and maintenance services at Bax's personal residence, such as the remodeling of his bathroom and plowing of his driveway, an expense paid trip, free golf outings, and other benefits.
"As we have said in the past, this Office intends to root out public corruption wherever it occurs," said U.S. Attorney Hochul. "Every person or business is entitled to a level playing field when it comes to dealings with Government officials. Public employees, for their part, may not illegally or personally benefit from their position. While instances of public corruption are fortunately rare in Western New York, such will be treated firmly and decisively when they come to our attention."
John Gross was sentenced to 33 months in prison in January 2012 for mail fraud and filing a false tax return.
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Christopher M. Piehota, Special Agent-in-Charge, Buffalo, Division, and the Internal Revenue Service, Criminal Investigation Division, under the direction of Toni Weinrauch, Special Agent-in-Charge.
Sentencing is scheduled for May 10, 2013, at 12:30 p.m. before Judge Arcara.
Former New Jersey Teacher Pleads Guilty in Manhattan Federal Court to Child Exploitation and Child Pornography OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that EVAN ZAUDER, a former sixth-grade teacher at a private school in New Jersey, pled guilty in Manhattan federal court to charges of using the Internet to entice a minor to engage in illegal sexual activity, and to receipt, distribution, and possession of child pornography. ZAUDER pled guilty before United States District Court Judge Lewis A. Kaplan. His criminal conduct is not currently known to have involved any students at the school.
Manhattan U.S. Attorney Preet Bharara stated: “Evan Zauder’s abuse and exploitation of minors was heinous criminal conduct perpetrated on some of the most vulnerable and powerless members of society. This Office treats the protection of children as an extraordinarily serious responsibility, and as this case demonstrates, we will persist in our efforts to ensure that those who prey on minors are found and held accountable.”
According to the Complaint, the Superseding Information, and statements made in court:
Between April and November of 2011, ZAUDER used the Internet to entice a minor in New Jersey who was 14 to 15 years old at the time to engage in sexual activity, and to attempt to entice the minor to do so a second time. ZAUDER also received and distributed files containing child pornography from his desktop computer between December of 2010 and May of 2011, and possessed hundreds of images and videos of child pornography on four devices that were seized from his Manhattan apartment in May of 2012.
ZAUDER, 27, pled guilty to a Superseding Information charging him with one count of enticement of a minor to engage in illegal sexual activity, one count of transportation, receipt, and distribution of child pornography, and one count of possession of child pornography. He faces a minimum sentence of 10 years in prison and a maximum sentence of life in prison on the enticement count, a minimum sentence of 5 years in prison and a maximum sentence of 20 years on the transportation, receipt, and distribution count, and a maximum sentence of 10 years on the possession count. For each of the three counts in the Superseding Information, ZAUDER faces a maximum fine of $250,000 or twice the gross gain or loss from the offense. He will be sentenced by Judge Kaplan on May 22, 2013, at 4:00 p.m.
Mr. Bharara praised the Federal Bureau of Investigation (“FBI”) for its outstanding work in the investigation.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Paul Monteleoni is in charge of the prosecution. Assistant U.S. Attorney Harry A. Chernoff represented the government at today’s plea proceeding.
The FBI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (212) 384-1000. It is staffed around the clock by investigators. Suspected child sexual exploitation or missing children may be reported to the National Center for Missing and Exploited Children, an Operation Predator partner, at (800) 843-5678 or http://www.cybertipline.com.
US v Evan Zauder S1 Information
Former Mortgage Title Agent Sentenced in Multi-Million Dollar Mortgage Fraud Scheme at Jade Apartment Complex in MiamiRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), and Paula Reid, Special Agent in Charge, United States Secret Service, Miami Field Office, announce that Raquel DeJesus Martinez of Miami-Dade County, who previously worked as a title agent, was sentenced today by U.S. District Judge Donald M. Middlebrooks to 24 months in prison, to be followed by 3 years of supervised release, in connection with a scheme to commit mortgage fraud at The Jade apartment complex on Brickell Bay Drive in Miami. In addition, she was ordered to pay restitution in the amount of $4,936,714.32. DeJesus Martinez is the eighth defendant to be sentenced in connection with the scheme.
According to statements in open court and court documents, the defendants engaged in a multi-million dollar mortgage fraud scheme using straw buyers to purchase residential properties at The Jade. As part of the scheme, the defendants submitted mortgage loan applications and supporting documents containing false information to lending institutions. The lending institutions relied on these documents to make mortgage loans to the straw buyers to purchase the residential properties. The defendants then prepared and submitted to the lenders, false HUD-1 statements. The defendants created a second version of the HUD-1 statements, listing the actual sales prices, which were provided to the seller. To conceal and perpetuate the fraud, the defendants made some payments to the condominium association and made some mortgage payments to the lenders to prevent foreclosure and continue to receive rental income for the units. The defendants thereafter diverted the mortgage fraud proceeds into shell companies for their personal use.
Previously, defendants Lilia Casal-Diaz, a real estate attorney, Andres Mendez, Sr. and his son, Andy Mendez, both real estate brokers, Josephine Santana, a mortgage broker, Jose Arnaldo Rosario, Jose Rafael Martinez, and Basilio Gomez, all of Miami-Dade County, were convicted for their roles in the mortgage fraud scheme.
Mr. Ferrer commended the investigative efforts of IRS-CID and the U.S. Secret Service. This case is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.
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.
Former Energy Director for City of Rockford Indicted on Public Corruption ChargesRead the Press Release
ROCKFORD — The former Energy Director for the City of Rockford was indicted today on federal charges of public corruption. MARK E. BIXBY, 57, of Rockton, Ill. was charged with two counts of mail fraud, two counts of bribery, two counts of extortion, and one count of making false statements to the Federal Bureau of Investigation.
According to the indictment, Bixby, as the Energy Director, managed the City of Rockford’s Energy Division. The Energy Division operated the Illinois Home Weatherization Assistance Program in Winnebago and Boone counties. The purpose of the weatherization program was to help low-income residents save energy and money by providing services that included repairing and replacing heating systems, windows and doors. The indictment alleges that from at least December 2006 to March 2010, Bixby defrauded a heating contractor and a window contractor, both of whom did work under the weatherization program, out of at least $53,101.33 in funds and benefits. The indictment also charges that Bixby accepted bribes from the contractors and extorted the heating contractor out of $2,980.
According to the indictment, the funds and benefits that Bixby obtained from the two contractors via fraud, extortion, and bribes, included the following: (1) a new 2007 two-door, red convertible Pontiac Solstice; (2) a total of $18,440 in donations to “charities,” which were deposited into bank accounts controlled by Bixby and a family member, and used to pay their personal expenses; (3) $2,980 for the “sale” of cemetery plots by Bixby to the heating contractor, for which Bixby never turned over the titles or deeds to the heating contractor; and (4) a $2,000 “loan” from the window contractor, which Bixby never repaid.
Each count of mail fraud, bribery, and extortion carries a maximum penalty of 20 years in prison. The false statements count carries a maximum penalty of 5 years in prison. All of the counts carry a maximum fine of $250,000 fine, or an alternate fine totaling twice the loss or twice the gain derived from the offense, whichever is greater, and restitution. If convicted, the Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines.
Bixby is scheduled to be arraigned on the indictment on Monday, January 28, 2013, at 11:15 a.m., at the federal courthouse in Rockford. The arraignment will be conducted by U.S. Magistrate Judge P. Michael Mahoney.
The indictment was announced by Gary S. Shapiro, Acting United States Attorney for the Northern District of Illinois; and Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Winnebago County State’s Attorney’s Office and the Rockford Police Department assisted in the investigation.
The government is represented by Assistant U.S. Attorney Scott A. Verseman.
An indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Former Chief Financial Officer of Stanford Financial Group Entities Sentenced to Prison for Role in Fraud Scheme and ObstructionRead the Press Release
James M. Davis, 64, formerly of Baldwyn, Miss., the former chief financial officer of Stanford International Bank (SIB) and Houston-based Stanford Financial Group, was sentenced today to five years in prison for his role in helping Robert Allen Stanford perpetrate a fraud scheme involving SIB, and for conspiring to obstruct a U.S. Securities and Exchange Commission (SEC) investigation into SIB.
Today’s sentence was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Kenneth Magidson of the Southern District of Texas; FBI Assistant Director Ronald T. Hosko of the Criminal Investigative Division; Assistant Secretary of Labor for the Employee Benefits Security Administration (DOL EBSA) Phyllis C. Borzi; Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS); and Chief Richard Weber, of Internal Revenue Service-Criminal Investigation (IRS-CI).
The prison sentence was imposed by U.S. District Judge David Hittner of the Southern District of Texas, who also sentenced Davis to serve three years of supervised release. As part of Davis’ sentence, the court also imposed a personal money judgment of $1 billion, which is an ongoing obligation for Davis to pay back criminal proceeds.
During the sentencing proceeding, Judge Hittner noted that Davis began cooperating with the government in early 2009, shortly after SIB’s collapse. Judge Hittner also noted that over the following three years, Davis provided substantial assistance to the authorities in the investigation and prosecution of others, including testifying at Stanford’s trial; testifying during the trial of Gilbert T. Lopez Jr. and Mark J. Kuhrt, Stanford’s former chief accounting officer and global controller, respectively; and preparing to testify against Laura Pendergest-Holt, Stanford’s chief investment officer. Holt eventually pleaded guilty; Stanford, Lopez and Kuhrt were convicted at trial. Stanford and Holt are currently serving 110 years and three years in prison, respectively. Lopez and Kuhrt are in federal custody and await sentencing, scheduled for Feb. 14, 2013.
As part of his 2009 guilty plea, Davis admitted that he was aware of Stanford’s misuse of SIB’s assets, kept the misuse hidden from the public and from almost all of Stanford’s other employees and worked to prevent the misuse from being discovered. In addition, Davis acknowledged that in January 2009, when the SEC sought testimony and documents related to SIB’s entire investment portfolio, he conspired with others in an effort to impede the SEC’s investigation and help SIB continue operating.
The investigation was conducted by the FBI, USPIS, IRS-CI and DOL EBSA. The case against Davis is being prosecuted by Deputy Chief Jeffrey Goldberg, Deputy Chief William Stellmach and Trial Attorney Andrew Warren of the Justice Department Criminal Division’s Fraud Section, and by Assistant U.S. Attorney Jason Varnado of the Southern District of Texas. The Justice Department also thanks the SEC for their assistance and cooperation in this matter.
Former Chief Financial Officer of Stanford Group Entities Sentenced to Federal Prison for Role in Fraud Scheme and ObstructionRead the Press Release
HOUSTON - James M. Davis, 64, formerly of Baldwyn, Miss., the former chief financial officer of Stanford International Bank (SIB) and Houston-based Stanford Financial Group, was sentenced today to five years in prison for his role in helping Robert Allen Stanford perpetrate a fraud scheme involving SIB, and for conspiring to obstruct a U.S. Securities and Exchange Commission (SEC) investigation into SIB.
Today’s sentence was announced by U.S. Attorney Kenneth Magidson of the Southern District of Texas; Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; FBI Assistant Director Ronald T. Hosko of the Criminal Investigative Division; Assistant Secretary of Labor for the Employee Benefits Security Administration (DOL EBSA) Phyllis C. Borzi; Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS); and Chief Richard Weber, of Internal Revenue Service-Criminal Investigation (IRS-CI).
The prison sentence was imposed by U.S. District Judge David Hittner of the Southern District of Texas, who also sentenced Davis to serve three years of supervised release. As part of Davis’ sentence, the court also imposed a personal money judgment of $1 billion, which is an ongoing obligation for Davis to pay back criminal proceeds.
During the sentencing proceeding, Judge Hittner noted that Davis began cooperating with the government in early 2009, shortly after SIB’s collapse. Judge Hittner also noted that over the following three years, Davis provided substantial assistance to the authorities in the investigation and prosecution of others, including testifying at Stanford’s trial; testifying during the trial of Gilbert T. Lopez Jr. and Mark J. Kuhrt, Stanford’s former chief accounting officer and global controller, respectively; and preparing to testify against Laura Pendergest-Holt, Stanford’s chief investment officer. Holt eventually pleaded guilty; Stanford, Lopez and Kuhrt were convicted at trial. Stanford and Holt are currently serving 110 years and three years in prison, respectively. Lopez and Kuhrt are in federal custody and await sentencing, scheduled for Feb. 14, 2013.
As part of his 2009 guilty plea, Davis admitted that he was aware of Stanford’s misuse of SIB’s assets, kept the misuse hidden from the public and from almost all of Stanford’s other employees and worked to prevent the misuse from being discovered. In addition, Davis acknowledged that in January 2009, when the SEC sought testimony and documents related to SIB’s entire investment portfolio, he conspired with others in an effort to impede the SEC’s investigation and help SIB continue operating.
The investigation was conducted by the FBI, USPIS, IRS-CI and DOL EBSA. The case against Davis is being prosecuted by Assistant U.S. Attorney Jason Varnado of the Southern District of Texas, Deputy Chief Jeffrey Goldberg, Deputy Chief William Stellmach and Trial Attorney Andrew Warren of the Justice Department Criminal Division’s Fraud Section. The Justice Department also thanks the SEC for their assistance and cooperation in this matter.
Former CEO-President of San Diego-Based Company Charged in $28 Million Stock Fraud Mark Lopez Also Accused of Obstructing SEC Investigation by Hiding Emails in Manila Folders Marked “Files Deleted” and “Not Released to SEC Subpoena (Delete).”Read the Press Release
United States Attorney Laura E. Duffy announced today the unsealing of an indictment charging Mark Anthony Lopez – the former President and CEO of Unico, Inc. (“Unico”) – with one count of conspiracy to commit securities fraud and two counts of obstructing justice. Unico is a San Diego-based mining company whose stock is publically traded. Lopez was arrested on January 17, 2013, by Special Agents of the FBI.
According to the indictment, Lopez conspired with New Jersey-based stock trader Mark Allen Lefkowitz (who previously pled guilty) to manipulate the share price and volume of Unico’s stock to benefit corporate insiders at the expense of shareholders. As a result of the fraud, the company issued approximately 9 billion new shares of its stock that it did not register with the Securities and Exchange Commission ("SEC"). These new, unregistered shares diluted existing shares, causing their value to drop by as much as $7 million. At the same time, Lefkowitz received free-trading shares from Unico worth more than $28 million, which he sold to unsuspecting buyers on the open market.
To carry out the fraud, Lopez and Lefkowitz exploited Section 3(a)(10) of the Securities Act of 1933 C a little-known provision that allows companies to issue unregistered shares of stock to settle "bona fide" debts. Lopez, on behalf of Unico, would enter into purported loan agreements with various shell corporations owned by Lefkowitz, most of which were based in the Turks and Caicos Islands. It was understood by the conspirators that Unico would purposefully default on the loan agreements so that Lefkowitz’s companies could initiate sham lawsuits against Unico.
Each and every one of these sham lawsuits would be brought by Florida-based lawyers in a Sarasota, Florida court. The Florida attorneys, even though they represented opposite sides in the lawsuits, would obtain their pleadings from a single Manhattan-based law firm that oversaw the sham lawsuits. Very soon after each lawsuit was filed C and typically within the very same week C Lopez and Lefkowitz would draft a written settlement agreement. The terms of the written settlement agreement would be extremely favorable to Lefkowitz. In short, Lopez would agree to settle Unico’s debt by issuing unregistered shares of stock worth on average seven times the debt that Unico actually owed. According to a secret side-agreement with Lopez, Lefkowitz would sell the shares on the open market to unsuspecting buyers and kick back a portion of the proceeds to Unico. This kickback would take the form of a new loan C which would have the added benefit of continuing the fraud scheme.
According to the indictment, Lopez also tried to obstruct an SEC probe into his misconduct by refusing to turn over emails, which he printed and concealed in two manila folders marked “Files Deleted” and another marked “Not Released to SEC Subpoena (Delete).” The indictment also alleged that Lopez redacted portions of an email and tried to delete it from his computer, and later lied to the SEC under oath during deposition testimony.
Lopez faces up to a total of 65 years in prison and $750,000 in fines. According to public filings, Lopez resigned his positions as CEO and President of Unico on June 9, 2012.
United States Attorney Duffy emphasized that this type of fraud attacks the very heart of our financial system. "The leaders of corporations—including and especially CEOs—owe a special duty to their shareholders. When these corporate leaders ignore that duty and use their positions to enrich insiders, it not only harms shareholders, but also threatens to undermine confidence in our financial markets and slows our country’s ongoing economic recovery." Duffy added that this investigation was initiated by special agents of the Federal Bureau of Investigation.
Lopez is expected to appear in court before the Honorable Barbara L. Major on January 23, 2013 at 9:30 a.m. for a bond hearing, and before the Honorable Irma E. Gonzalez, United States District Court Judge on February 22, 2013 at 2:00 p.m., for a motion hearing.
DEFENDANT Case Number: 12CR5236-IEG Mark Anthony Lopez SUMMARY OF CHARGESConspiracy to Commit Securities Fraud, in violation of Title 18, United States Code, Section 1349. Maximum penalties: 25 years in prison, 5 years= supervised release, a $250,000 fine and a $100 special assessment.
Destruction, Alteration and Falsification of Records, in violation of Title 18, United States Code, Section 1519. Maximum penalties: 20 years in prison, 5 years’ supervised release, a $250,000 fine and a $100 special assessment
INVESTIGATING AGENCYFederal Bureau of Investigation
An indictment itself is not evidence that the defendant committed the crimes charged. The defendant is presumed innocent until the United States meets its burden in court of proving guilty beyond a reasonable doubt.
Florida Man Indicted for Federal Election ViolationsRead the Press Release
WASHINGTON– A two-count superseding indictment was unsealed today in the Northern District of Florida charging a Florida resident with providing campaign contributions in the names of others and causing a presidential campaign committee to make a false statement to the Federal Election Commission (FEC), announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and Robert O. Davis, Acting U.S. Attorney for the Northern District of Florida.
Jay Odom, 56, of Destin, Fla., was charged in federal court in the Northern District of Florida with one count of providing campaign contributions in the name of another and one count of causing another to make false statements to the FEC.
The indictment alleges that in 2007, Odom directly or indirectly used personal funds aggregating more than $10,000 to reimburse individual contributions to the authorized campaign committee of a presidential candidate. As a result, Odom allegedly caused the authorized campaign committee of that presidential candidate to file reports with the FEC that falsely stated that certain individuals had made federal campaign contributions when in fact each contribution was made by Odom. According to the indictment, Odom was aware of the maximum donation that could be made by an individual to the campaign, and he knowingly devised a scheme to funnel his own money through the names of others in order to conceal from the FEC the true source and amount of the campaign contribution.
The charge of causing another person to make a false statement to the FEC carries a maximum sentence of five years in prison. The charge of providing campaign contributions in the name of another carries a maximum sentence of two years in prison.
The charges in the indictment are only allegations, and the defendant is presumed innocent unless and until proven guilty.
The superseding indictment results from an investigation by the FBI. This case is being prosecuted by Assistant U.S. Attorney Randall J. Hensel and Trial Attorney Brian K. Kidd of the Criminal Division’s Public Integrity Section.
Federal Jury Finds Jacksonville Armed Career Criminal Guilty of Possessing A FirearmRead the Press Release
Jacksonville, FL- U.S. Attorney Robert E. O'Neill announces that a federal jury last week found Willie Lee Daniels (39, Jacksonville) guilty of being a felon in possession of a firearm. Because of his prior criminal history, Daniels is classified as an Armed Career Criminal, and faces a mandatory minimum penalty of 15 years, up to a maximum penalty of life in federal prison. Daniels was indicted on July 15, 2010.
According to testimony and evidence presented at trial, in October 2009, Daniels and his girlfriend got into a verbal argument inside of their apartment. The argument eventually moved outside. Daniels' girlfriend called out for help, yelling that Daniels had a gun. One of the neighbors called 911. Officers from the Jacksonville Sheriff's Office responded, and observed Daniels walking with his girlfriend in the parking lot. After making eye contact with one of the officers, Daniels ran behind an annex building and threw the gun over a nearby fence. Daniels was detained by the officers, and the gun was subsequently recovered.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sheriff's Office. It is being prosecuted by Assistant United States Attorney Malisa Chokshi and Frank Talbot.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy led by ATF. United States Attorney Robert E. O’Neill, along with Julie Torres, ATF Special Agent in Charge, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Federal Inmate Sentenced for Assault ChargeRead the Press Release
LAKE CHARLES, La.: United States Attorney Stephanie A. Finley announced today that Edward Rodriguez, 39, an inmate at Pollock USP, was sentenced today to an additional two years in prison for assaulting a Bureau of Prison employee.
Edward Rodriguez assaulted a USP Pollock officer while the officer was engaged in the performance of his duties. Rodriguez was standing in front of the officer’s station when he assaulted another inmate. The inmate ran into the officer’s station for protection. An officer went to his aid, and Rodriguez shoved the officer in the chest before turning around and fleeing from the officer’s station.
Rodriguez is currently serving a 154-month term of imprisonment for aiding and abetting armed bank robbery, and aiding and abetting the use of a firearm during a crime of violence.
The investigation was conducted by the FBI and the Special Investigative Services for The Bureau of Prisons at Pollock. The case was prosecuted by Senior Litigation Counsel Joseph G. Jarzabek and Special United States Attorney Seiji Ohashi.
Essex County, N.J., Man Sentenced to 207 Months in Prison for Robbing 10 BanksRead the Press Release
Also Discharged Weapon in Furtherance of a Crime of Violence
TRENTON, N.J. – An Essex County, N.J., man was sentenced to 207 months in prison for federal bank robbery charges and discharge of a firearm in connection with bank robbery, United States Attorney Paul J. Fishman announced.
Maurice Richardson, 43, of Irvington, N.J., was arrested Dec. 1, 2010, by officers of the Old Bridge Police Department. He previously pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to Counts 12 and 13 of the 13-count Indictment charging him with robbing a Capital One Bank branch and assaulting people during the course of the robbery.
Richardson also admitted nine additional bank robberies, for a total of 10, as follows:
Date
Bank
Location
Commerce Bank
Morris Township, N.J.
May 31, 2008
Commerce Bank
Rahway, N.J.
July 27, 2008
Commerce Bank
Nutley, N.J.
Sept. 28, 2008
Commerce Bank
Nutley, N.J.
April 6, 2009
Capital One Bank
Marlboro, N.J.
Dec. 21, 2009
Capital One Bank
Marlboro, N.J.
July 3, 2010
Capital One Bank
Hasbrouck Heights, N.J.
Aug. 6, 2010
TD Bank
Howell, N.J.
Sept. 1, 2010
Capital One Bank
Paramus, N.J.
Dec. 1, 2010
Capital One Bank
Marlboro, N.J.
According to documents filed in this case and statements made in court:
Richardson entered the banks and gave notes to the tellers, which variously demanded money in large bills, stated that he had a gun, and threatened he would shoot the tellers if they did not comply. Witnesses at some of the robberies observed the defendant leaving the crime scenes in a burgundy SUV.
On Dec. 1, 2010, a Marlboro police officer observed a burgundy Chevrolet Suburban with tinted windows entering Route 9 North from a street adjacent to the Capital One Bank's parking lot. After an approximately one-mile pursuit, the vehicle struck a concrete wall in Sayreville, N.J., and came to a stop. Richardson was apprehended when he got out of the SUV and attempted to flee. A 9 mm bullet was found in the vehicle, and a 9mm handgun was found after a search of the area near where Richardson crashed. It was the third time he had robbed the same bank branch in less than two years.
In addition to the prison term, Judge Sheridan sentenced Richardson fo three years of supervised release and ordered to pay restitution of $50,646.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez in Newark with the investigation leading to today’s sentence. He also thanked the Monmouth County Prosecutor's Office, the Old Bridge Police Department, Sayreville, Police Department, Marlboro Police Department, Howell Police Department, Morris Township Police Department, Rahway Police Department, Nutley Police Department, Hasbrouck Heights Police Department and Paramus Police Department for their roles in the investigation.
The government is represented by Assistant U.S. Attorney R. Joseph Gribko of the U.S. Attorney's Office Criminal Division in Trenton.
13-035
Defense counsel: Michael A. Armstrong Esq., of Willingboro, N.J.
Essex County, N.J., Man Arrested for Stealing Oxycodone from Manufacturing FacilityRead the Press Release
NEWARK, N.J. – An Essex County, N.J., man who worked at a facility in Elizabeth, N.J., that manufactured oxycodone was arrested this morning for stealing more than 8,500 pills from the facility, U.S. Attorney Paul J. Fishman announced.
Edwin Hernandez, 48, of Irvington, N.J., was charged by Complaint with possession and distribution of Oxycodone. He was scheduled to make his initial court appearance later today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to the Complaint:Hernandez was previously employed at a company identified as “Company 1,” one of the largest United States manufacturers of oxycodone, at the company’s Elizabeth, N.J., facility. On Nov. 21, 2012, Hernandez was observed by another employee scooping large amounts of 30 mg oxycodone pills into a quart-sized plastic bag. A subsequent search of Hernandez’ locker by security, pursuant to corporate policy, revealed a backpack containing 8,591 30mg oxycodone pills. The street value of the stolen pills ranges from $170,000 to $250,000.
Oxycodone, also known as “oxy,” is a narcotic analgesic or painkiller and is classified as a Schedule II controlled substance. Demand for oxycodone-based prescription pain medication has grown to epidemic proportions in the United States, and dealers profit by selling such medication on the street. Oxycodone-based Schedule II drugs have a high potential for abuse, and users will often crush and snort the pills or dissolve and inject them to get an immediate high. This abuse can lead to addiction and overdose, and, sometimes death.
U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge Robert G. Koval, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Daniel V. Shapiro of the U.S. Attorney’s Office General Crime Unit in Newark.The charge and allegations contained in the Complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
13-034
Defense counsel:Hernandez, Edwin Complaint
En Fuego Ministry “Apostle” Sentenced to Life for Child Sex TraffickingRead the Press Release
Orlando, Florida - U.S. District Judge Roy B. Dalton, Jr. today sentenced Luis E. Morales (58, Ormond Beach) to life in federal prison for child sex trafficking and transporting children across state lines to engage in sexual activity. The court also ordered Morales to pay more than $35,000 in restitution to the victims of the offenses, and to forfeit his interest in the property located at 8 Crossings Trail in Ormond Beach.
Judge Dalton also sentenced Morales’ co-defendant, Rebeca Rivera (28, Hartford, Connecticut) today. Rivera was sentenced to 15 years in federal prison for her role in aiding and abetting the sex trafficking of a child and the transportation of a child across state lines to engage in sexual activity. As part of her sentence, Rivera was ordered to pay $31,030 in restitution to the victim of her offenses, to serve 10 years of supervised release and to register as a sex offender. Morales and Rivera were convicted on November 5, 2012.
According to evidence presented at trial, Morales was a self-proclaimed “Apostle” in a ministry that he founded called En Fuego for Jesus. Rivera was one of his “prophets” in the ministry. In November 2009, Morales transported a 12-year-old ministry member from Florida to Connecticut, knowing that the minor would be caused to engage in a commercial sex act. While in Connecticut, Rivera recruited, encouraged, and enticed the minor to engage in sex acts with Morales. Later in November 2009, Morales transported the minor from Connecticut to Florida with the intent to engage in sexual activity with the minor. In December 2010, Morales transported a 13-year-old member of the ministry from Arizona to Florida, and then to the Virgin Islands, with the intent to engage in sexual activity with that minor.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Karen L. Gable.
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."
Elkins Resident Enters Plea of Guilty to Manufacturing MarijuanaRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistELKINS, WEST VIRGINIA - A 44 year old Elkins, West Virginia, resident entered a plea of guilty on January 18, 2013, in United States District Court in Elkins before Magistrate Judge John S. Kaull.
United States Attorney William J. Ihlenfeld, II, announced that: DANIEL RAY PHARES entered a plea of guilty to “ Manufacturing Marijuana” in Elkins. As part of his plea, PHARES has agreed to the forfeiture of $950.01 in US currency, a firearm and ammunition, which constitute proceeds obtained as a result of drug activity. PHARES, who is free on bond pending sentencing, faces up to 10 years imprisonment and a $500,000 fine.
The case was prosecuted by Assistant United States Attorney Stephen D. Warner and investigated by the Elkins Police Department., Randolph County Sheriff’s Department and the West Virginia State Police.
Drug Couriers Sentenced to Federal PrisonDrug Traffickers Racing to Receive Lower State Sentences, Fail to Avoid Federal ProsecutionRead the Press Release
MEDFORD, Ore. - Francisco Hernandez-Figueroa, 29, from San Rafael, Mexico and Jaime Eugene Muniz, 28, from Sacramento, California were both sentenced to federal prison for possession of methamphetamine with intent to distribute it. U.S. District Judge Owen M. Panner sentenced Hernandez-Figueroa to 120 months in prison and Muniz to 60 months in prison for each of their drug trafficking offenses, both of their sentences to be served concurrently to their remaining prison terms they received from their state court convictions in 2011.
On March 16, 2001, an Oregon State Police officer stopped Muniz for a traffic violation while driving northbound on Interstate 5. Following the stop, the officer observed numerous things based on his training and experience that were typical of those trafficking in narcotics. A drug detection dog alerted to the presence of drugs in the vehicle and, upon searching, the officer located a hidden compartment built into the center console area with an electronic locking mechanism. The officer discovered eight packages wrapped in black tape inside the compartment. Later laboratory analysis and investigation revealed that the packages contained over 10 lbs. of pure methamphetamine with an estimated street value of $600,700, all destined for Portland, Oregon.
On March 20, 2011, in a separate and unrelated incident, an Oregon State Police officer stopped Hernandez-Figueroa's car on Interstate 5 after observing a traffic violation. Following the stop, the officer observed numerous things based on his training and experience that were typical of those trafficking in narcotics. When the vehicle was searched, the officer determined that the vehicle was equipped with a sophisticated electronic activation system leading to two separate hidden compartments located behind side panels in the rear passenger compartment. The activation system included push button switches hidden in the steering column with switch activation when adjusting the driver's seat. Officers eventually gained access to the hidden compartments and discovered a total of 16 packages wrapped in black duct tape. Later laboratory analysis and investigation revealed that the packages contained over 15 lbs. of pure crystal methamphetamine with an estimated street value of $870,000, destined for Seattle, Washington. Officers also learned that $4,500 in crisp $100 bills that Hernandez-Figueroa was carrying was part of his drug trafficking activity and that he had illegally entered the United States recently for the specific purpose of trafficking in methamphetamine.
Within a few days of their arrest, and based on advice from their defense attorneys, both Muniz and Hernandez-Figueroa immediately demanded to plead guilty and be sentenced in state court on drug charges before their cases could be reviewed by the United States Attorney's office in an attempt to avoid federal prosecution and longer federal prison terms. Muniz and Hernandez-Figueroa were both sentenced to the Oregon Department of Corrections for terms of 59 months and 60 months, respectively.
"The United States Attorney's office will not be deterred in pursuing cases against drug traffickers who attempt to avoid federal prosecution by racing to state court to plead guilty," said S. Amanda Marshall, United States Attorney for the District of Oregon." These were some of the largest seizures of nearly 100% pure methamphetamine in Southern Oregon. The Department of Justice authorized our prosecution because the state convictions and sentences did not adequately vindicate the interest the United States has in prosecuting major drug traffickers."
Sentencing documents noted that these two defendants were squarely in the middle of the chain of distribution of a significant amount of pure methamphetamine and sufficiently connected into the drug trafficking organization that entrusted them with a significant amount and valuable load of illicit drugs on more than one occasion. Both Muniz and Hernandez-Figueroa have since filed for post-conviction relief in Jackson County Circuit Court to set aside their state convictions alleging a substantial constitutional violation related to inadequate defense attorney professional performance.
The cases were investigated by the Oregon State Police and Immigration and Customs Enforcement and were prosecuted by Assistant U.S. Attorney Byron Chatfield.
Colorado Horse Breeder Arrested for Income Tax EvasionRead the Press Release
DENVER – Nikitis A. Mangeris, age 69, of Berthoud, Colorado, was arrested last Friday (January 18, 2013) at his home for income tax evasion, the United States Attorney’s Office and IRS Criminal Investigation announced. Mangeris was indicted by a federal grand jury in Denver on January 9, 2013 for tax evasion and aiding and abetting in tax evasion. The indictment remained sealed until his arrest and subsequent initial appearance. Mangeris appeared in U.S. District Court in Denver on the day he was arrested and was advised of his rights and the charges pending against him. Mangeris was then released on a $10,000 unsecured personal appearance bond. He is scheduled to appear in court on January 24, 2013 at 10:30 a.m. for arraignment.
According to the indictment, Mangeris operated the Les Beaux Chevaux and Tenet Investment Group businesses. The businesses held Arabian horses (“businesses’ horses”) and provided horse breeding services. Approximately twelve of the businesses’ horses were registered with the Arabian Horse Association in the name of Les Beaux Chevaux and approximately two of the businesses’ horses were registered with the Arabian Horse Association in the name of Tenet Investment Group. Mangeris kept and cared for, at his residence, some of the horses including a breeding stallion known as MHR Nobility.
Mangeris has not filed a U.S. Individual Income Tax Return, Internal Revenue Service (“IRS”) Form 1040, for calendar years 1997-2003, 2005-2007, or 2010. Beginning in 2002, the IRS conducted an audit of Mangeris for calendar years 1997-1999. On or around February 6, 2004, Mangeris signed an IRS Form 4549, consenting to the IRS assessment and collection of back taxes, penalties, and interest from him for calendar years 1997, 1998, and 1999 for amounts totaling approximately $850,235.77, $18,349.27, and $23,370.24, respectively.
Despite agreeing to these back taxes, penalties, and interest, Mangeris has evaded payment of these amounts. In or around 2004 and 2007, he filed IRS Forms, 433-A - Collection Information Statement for Wage Earners and Self-Employed Individuals, which failed to list all income, assets, liabilities and other information. In or around 2005, he filed an IRS Form 1040, for calendar year 2004, which failed to report, on a Schedule C or otherwise, substantial amounts of income from his horse breeding businesses and receipts from semen sales. Furthermore, Mangeris directed third-party buyers to make payments for the purchase of semen and offspring derived from his businesses’ horses to other individuals and entities holding bank accounts he controlled and paid his own personal expenses through such accounts.
“With tax season around the corner this indictment should serve as a reminder that anyone who evades paying their taxes will be held criminally accountable,” said U.S. Attorney John Walsh.
“As tax filing season approaches, this is a reminder that all taxpayers should file complete and accurate tax returns; all income regardless of the source is taxable,” said Stephen Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office.
Mangeris was charged with one count of income tax evasion and aiding and abetting. If convicted, he faces not more than 5 years in federal prison, and a fine of up to $250,000.
This case was investigated by agents with IRS-Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Kenneth Harmon and Special Assistant U.S. Attorney Kevin Sweeney. Kevin Sweeney is a trial attorney from the Justice Department’s Tax Division,
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
####
Cleveland Heights Man Indicted on Four Counts of Bank RobberyRead the Press Release
A federal grand jury has returned an indictment charging Brandon Laster, age 30, of Cleveland Heights, Ohio, with four counts of bank robbery, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that on October 30, November 18, November 26, and December 11, 2012, Laster did by force, violence, and intimidation, take from the person, presence, and custody of bank tellers the sum of approximately $8,000 which was under the care, custody, and possession of four banks located in University Heights, Cleveland Heights, Independence, and Bedford Heights, the deposits of which were then insured by the Federal Deposit Insurance Corporation.
The indictment was presented to the grand jury by Assistant United States Attorney Michelle M. Baeppler after an investigation by agents of the Federal Bureau of Investigation and local law enforcement officers.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to the case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Clean Water Act ViolationRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Taney County, Mo., man pleaded guilty in federal court today to submitting false water samples for testing from a wastewater treatment facility that dumped raw, untreated sewage into Table Rock Lake for much of 2008.
Bruce Raymond Morris, 63, of Taney County, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with making false statements in violation of the Clean Water Act.
Morris was employed by Light Environmental, Inc., which provides environmental and waste treatment services. Landmarc Estates, a Taney County subdivision, hired Light Environmental to operate its wastewater treatment facility, to conduct wastewater sampling at the facility, and to submit wastewater sample results to the Missouri Department of Natural Resources as required by its federal permit. Morris was responsible for operating the wastewater treatment facility serving Landmarc Estates from March 2008 to January 2009.
The Landmarc Estates wastewater treatment facility was located less than 100 yards from Table Rock Lake. It discharged into a roadside ditch, and from there the discharged materials flowed downhill into Table Rock Lake. From March 2008 to January 2009, the Landmarc Estates facility did not properly treat its wastewater. Its electrically-operated motor, providing the only source of operating power for the facility, was inoperable for this entire period. As a result, raw, untreated sewage was released into the roadside ditch, and that untreated sewage flowed directly into Table Rock Lake.
Morris knew the Landmarc Estates facility did not properly treat its wastewater, and was in violation of its permit. As operator of the facility, Morris was responsible for its upkeep and repair; however, Morris did not repair the facility. Knowing that wastewater samples taken from the facility would not pass state tests, Morris substituted test samples from another wastewater treatment facility. Morris submitted those substituted test samples for biochemical analysis, falsely certified on the quarterly Wastewater Discharge Monitoring Reports that the test samples and laboratory test results were for the Landmarc Estates facility, and caused those false reports to be submitted to the state.
According to today’s plea agreement, a state inspector found at least 10 violations by the wastewater treatment facility, the most egregious of which was that raw, untreated sewage was released directly into the environment.
Under federal statutes, Morris is subject to a sentence of up to two years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the Missouri Department of Natural Resources and EPA Criminal Investigation Division.
Cherry Creek Man Pleads Guilty to AssaultRead the Press Release
US Attorney Brendan V. Johnson announced that Joshua Hale, age 22, of Cherry Creek, South Dakota, appeared before US Magistrate Judge Mark A. Moreno on January 18, 2013, and pled guilty to a Superseding Information that charged him with Assault by Striking, Beating and Wounding. The maximum penalty upon conviction is 6 months in custody, a $5,000 fine, restitution, and a $10 special assessment.
The conviction arose from an incident that occurred in July 2012 when Hale assaulted an adult male in Cherry Creek, South Dakota.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. The case is being prosecuted by Assistant US Attorney Mikal Hanson.
A presentence investigation was ordered, and a sentencing date was set for April 9, 2013. The defendant was remanded to the custody of the US Marshal pending sentencing.
Charlotte Man Sentenced to 60 Years in Prison for Marijuana Trafficking, Money Laundering and Gun OffensesRead the Press Release
CHARLOTTE, N.C. – U.S. District Court Judge Robert J. Conrad, Jr. sentenced today Parker Antron Coleman, 28, of Charlotte to 30 years in prison for marijuana trafficking and money laundering, plus a consecutive 30 years for firearms offenses, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Coleman was also ordered to serve 10 years of supervised release.
U.S. Attorney Tompkins is joined in making today’s announcement by Brock D. Nicholson, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Atlanta and the Carolinas and Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department.
According to evidence presented at his trial and other court records, Coleman was the head of a drug trafficking conspiracy that transported and distributed more than four tons of marijuana in the Charlotte area. Court records indicate that Coleman’s suppliers were linked to California-based members of the “Mexican Mafia” drug trafficking organization. According to trial evidence and filed court documents, the drug organization had “couriers” who used commercial flights to travel between the two states, each time transporting approximately $50,000 in cash to California, and returning to Charlotte with approximately 100 pounds of marijuana in checked baggage. An accomplice working at the airport in California assisted the couriers with passing their luggage containing the drugs through airport security. Coleman convinced friends and family members, among others, to act as couriers for him, as well as his own probation officer who became a “lieutenant” in his drug organization. Trial evidence demonstrated that couriers for the organization made well in excess of 100 such round trips.
Court records indicate that on November 2, 2010, law enforcement recovered $117,595 at the airport from two of Coleman’s couriers and approximately 30 pounds of marijuana from the South Park residence of one of Coleman’s co-conspirators. Upon executing a search warrant on the same day, law enforcement also recovered $92,577 in cash, a semi-automatic handgun, large quantities of drug trafficking paraphernalia and money laundering evidence from Coleman’s residence. Coleman initially denied owning the residence however, law enforcement recovered information that tied the property to the defendant, including business records, photographs, and exotic fish and aquarium equipment worth over $15,000.
On November 16, 2010, law enforcement arrested Coleman and seized two handguns hidden in a secret compartment in Coleman’s luxury SUV. Coleman is a convicted felon and is therefore prohibited from carrying and/or owning a firearm.
Coleman’s prosecution stems from operation “Goldilocks,” an Organized Crime Drug Enforcement Task Force (OCDETF) investigation that began in January 2009 and has resulted in the federal prosecution of approximately 70 individuals involved in the drug conspiracy.
“Coleman trafficked tons of marijuana into Charlotte and profited from spreading drugs in the city he grew up in. Today’s sentence is the capstone to a multi-year international drug trafficking investigation that has dismantled a major drug organization and has landed over 60 defendants in federal prison,” said U.S. Attorney Tompkins.
“As the head of a significant drug trafficking organization in Charlotte, the defendant controlled the smuggling and distribution of large amounts of marijuana," said Brock D. Nicholson, special agent in charge of HSI Atlanta, who oversees agency investigations in Georgia and the Carolinas. “Working with great partners and teamwork under the Organized Crime Drug Enforcement Task Force model, HSI special agents and Charlotte-Mecklenburg officers have disrupted and dismantled this cell and crippled their operations in North Carolina and California.”
“I commend our agency partners for all their hard work and diligence in helping to dismantle and disrupt drug trafficking activities between here and California,” said Chief Rodney Monroe, Charlotte-Mecklenburg Police Department. “With the turn of events, there is now one less drug trafficking organization plaguing our community.”
Coleman’s sentence was enhanced due to prior felony convictions. He has been in local federal custody since his November 2010 arrest and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a facility. Federal sentences are served without parole.
U.S. Attorney Tompkins credited special agents of ICE HSI and CMPD officers for the investigation leading to today’s sentence. The prosecution was handled by Assistant United States Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
Cenex Harvest States, Inc. Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on January 22, 2013, before U.S. District Judge Sam E. Haddon, Cenex Harvest States, Inc., (CHS Inc.) was fined $500,000 for failure to report a release of a hazardous substance. In addition, CHS will make a $50,000 payment to the Phillips County Rural
Fire Department as community service and pay a $400 special assessment.
In an Offer of Proof filed by Assistant U.S. Attorney Kris A. McLean, the government stated it would have proved at trial the following:
The Milk River Cooperatives' (MRC) facility at Malta is owned by CHS Inc. The MRC facility's primary business consisted of retail sales of feed and seed, fertilizers, pesticides, and herbicides to local farmers. During late 2009, the herbicides stored at the MRC facility included approximately 1,800 pounds of materials containing the chemical 2,4-D.
On November 21, 2009, at approximately 1:30 a.m., the MRC facility caught fire. The Phillips County Volunteer Fire Department Chief arrived on the scene at approximately 2:00 a.m. The Chief observed the MRC facility manager on sight moving equipment to safety. The MRC facility manager told the Chief that the building held a variety of different chemicals. The Chief told the MRC facility manager to place berms in the ditches to contain the flow of chemicals and to "get hold of a hazmat team." The Chief was concerned about the liquid chemicals all over the floor of the building. The MRC facility manager watched large barrels of the chemical 2,4-D go up in flames. The MRC facility manager asked the fire department to not spray water on the fire to prevent the spreading of the chemicals. The Chief left the fire scene at approximately 4:30 a.m. and observed that most of the chemicals located inside the building had burned or released to the air and ground.
The general manager for all MRC facilities arrived on the scene at approximately 3:30 a.m. Upon his arrival, the general manager took a CHS Inc. emergency response card out of his wallet and called CHS Inc.'s Environmental, Health and Safety Manager to notify him of the fire. The Environmental, Health and Safety Manager called the State of Montana Disaster and Emergency Planning Services (MDES) to report the fire at CHS Inc.'s Malta facility. The MDES planner that received the call understood that it was a warehouse fire and that chemicals such as glyphosate, 2,4-D and Round-up were contained in the warehouse. The MDES planner understood from CHS Inc.'s Environmental, Health and Safety Manager that the fire was small and of no significance. The MDES planner was not told that chemicals were released onto the ground or that the chemicals posed any risk. The MDES planner understood the fire was under control and contained in the facility. No one from CHS Inc. placed a call to the National Response Center or the EPA Emergency Response Center in Denver, Colorado.
The manager of CHS Inc.'s Big Sandy facility also served as the safety manager for its Malta facility. This CHS Inc. manager responded to the fire scene at approximately 7:00 a.m. on November 21. The manager provided an inventory of chemicals that had been stored at the Malta facility to the Malta Fire Department. The manager was very concerned about products containing 2,4-D being toxic and dangerous when consumed in a fire. The manager later stated that if the wind had been blowing west, towards Malta, they would have evacuated the town. Shortly after the fire, 14 calves downwind at a ranch east of Malta died of a lung ailment. A veterinarian stated that toxic smoke from the fire could not be ruled out as a cause of death. CHS Inc. paid the owners of the calves market value for the dead calves and also purchased approximately 473 head of cattle that had been exposed to smoke from the MRC facility fire.
Cleanup of the fire's aftermath included collection of 6,750 gallons of a water/chemical mixture waste created by fire suppression efforts. Impacted soils around the facility were excavated. Approximately 130 cubic yards of 2,4-D contaminated soil was collected and held for proper disposal.
Congress has passed many laws regulating companies to be good neighbors to the environment. There is an existing regulatory framework to protect the public health of Montana citizens and Montana businesses. In fact, most of the environmental laws, like the Comprehensive Environmental Response Compensation and Liability Act (CERCLA), came into existence 30 or 40 years ago. Under CERCLA, CHS had the duty to immediately notify the National Response Center as soon as it had knowledge of an unpermitted release of hazardous substance, specifically the chemical 2,4-D. CHS failed its duty." said U.S. Attorney Michael W. Cotter. "The failure by any individual or corporation to properly report and handle a chemical spill will be investigated and prosecuted in the District of Montana. The U.S. Attorney's Office will continue to strive to protect Montanans' public health and safety and the environment for generations to come."
Complete, accurate and honest reporting is essential in order to protect the public when harmful toxins are released from facilities," said Jeffrey Martinez, Special Agent in Charge of EPA's criminal enforcement program in Montana. "Following a fire and release of hazardous substances, the defendant failed to notify the proper authority as required by law." "Today's sentence shows that this type of conduct will not be tolerated."
The investigation was conducted by the Environmental Protection Agency's Criminal Investigation Division.
Casselberry Man Sentenced to More Than 12 Years for Receiving Child PornographyRead the Press Release
Orlando, Florida - U.S. District Judge Roy B. Dalton, Jr. today sentenced Hal Chris Billerbeck (51, Casselberry) to 12 ½ years in federal prison for receipt of child pornography. The court also ordered Billerbeck to forfeit the electronic storage devices that he used to receive and possess the child pornography. As part of Billerbeck's sentence, the court ordered him to serve a 10-year term of supervised release, following his release from prison, and to register as a sex offender. Billerbeck pleaded guilty on November 2, 2012.
According to court documents, FBI agents executed a search warrant at Billerbeck’s home and found 99 pictures and 224 videos depicting child pornography. The majority of the photos and videos depicted the sexual abuse of girls between the ages of three and eleven years old. Billerbeck told agents that he had been downloading child pornography for the past twelve years. He also admitted that a state search warrant for child pornography was executed at his home in 2007. He said that the child pornography the state investigators located on the computers during the search belonged to him. In addition to receiving and viewing child pornography in his home, Billerbeck said that he also took the images he stored on a computer disk to his place of employment and viewed the child pornography on his work-issued laptop while at work.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Karen L. Gable.
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."
Bryan Chiropractor Convicted of Defrauding Automobile Insurance Companies of $3 MillionRead the Press Release
HOUSTON - A Bryan chiropractor has entered a plea of guilty to engaging in a conspiracy to defraud various automobile insurance companies of more than $3 million, United States Attorney Kenneth Magidson announced today.
Chase Lindsey, 34, is the co-owner of Lindsey Chiropractic Care located in Bryan. Today, he admitted he participated in a two-year conspiracy to defraud numerous auto insurance companies by allowing fraudulent chiropractic bills to be created under his name for treatments which were never performed and used as support for fraudulent settlement demand letters sent to auto insurance companies.
Lindsey entered into an agreement with the office manager of a law firm which represented clients allegedly injured in auto accidents. Lindsey agreed to provide medical evaluations of, and recommend treatment for, those patients in exchange for $2,000 in cash per month, which totaled approximately $58,000 during the course of the conspiracy.
For the clients he actually evaluated, Lindsey routinely recommended medically unnecessary therapeutic treatments. In some instances, Lindsey either never evaluated the patient or did so after the patient had already begun receiving treatments. The treatments, if done, were done by unlicensed, untrained and unqualified individuals whom Lindsey never supervised. Lindsey always prescribed the same six treatments but the patients usually received only two: ice/heat packs and electric stimulation. He prescribed the treatments be done 3-4 times per week for 5-6 weeks, but patients usually went once a week for 3-4 weeks. Lindsey also provided no follow-up treatments.
Lindsey and others used four chiropractic clinics in the scheme. Lindsey started working at the first clinic, Texas Avenue Chiropractic Clinic, in February 2007 and continued until it closed on or about Sept. 1, 2007. After that, Lindsey was listed as the only chiropractor at H & E Chiropractic and Private Chiropractic Care, two businesses also involved in the conspiracy. After Private Chiropractic Care shut down in September 2009, Lindsey and others agreed to continue the fraud scheme by sending the law firm clients to Lindsey Chiropractic Care - Lindsey's chiropractic clinic. Clients were sent there until search warrants were executed in November 2009.
Despite changing the name and location of the chiropractic clinic four times, the fraud scheme remained the same. Co-conspirators recruited individuals allegedly involved in auto accidents to be represented by the law firm who were then sent to Lindsey to be evaluated. Lindsey routinely prescribed medically unnecessary treatment which was provided, if at all, by unlicensed, untrained and unqualified individuals. Lindsey knew that most of the treatments were not being performed. Nonetheless, Lindsey allowed false and fraudulent chiropractic bills to be created under his name from each of the four clinics for treatments which were never performed.
The fraudulent bills were used as support for settlement demand letters sent to auto insurance companies which caused the insurance companies to issue settlement checks. Lindsey acknowledged the scheme to defraud the automobile insurance companies resulted in the submission of more than $3 million in false billing claims. The insurance companies paid at least $1.2 million in false claims during 2007-2009.
U.S. District Judge Kenneth Hoyt, who accepted the guilty plea, set sentencing for April 22, 2013. At that time, Lindsey faces up to 30 years in prison and a possible $1 million fine. As part of his plea agreement, Lindsey also agreed to pay restitution of $1.2 million to the insurance companies victimized by the scheme. Lindsey was permitted to remain on bond pending his sentencing.
The remaining defendants charged in relation to the conspiracy are set for trial on April 2, 2013.
The criminal charges are the result of a joint investigation by agents of the FBI and the National Insurance Crime Bureau. Assistant United States Attorney Al Balboni is prosecuting the case.
Bradenton Man Charged with Producing Child PornographyRead the Press Release
Tampa, FL - United States Attorney Robert E. O'Neill announces the filing of a criminal complaint charging Heriberto Pena Salazar (24, Bradenton) with production, transportation, receipt, and possession of child pornography. If convicted, Salazar faces a mandatory minimum of 15 years, up to 30 years in federal prison for the production offense. He faces a mandatory minimum of 5 years, up to a maximum of 20 years in federal prison for both the receipt and transportation charges, and up to 10 years for the possession charge.
According to the complaint, Salazar used his cell phone to produce a video of himself sexually abusing a prepubescent female child. He then allegedly distributed that video over the Internet. The complaint also alleges that Salazar posted child pornography to a foreign image board on the Internet. According to the complaint, Salazar is from Mexico and is illegally present in the United States.
A criminal complaint is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), U.S. Immigration and Customs Enforcement's (ICE) Enforcement and Removal Operations (ERO), the Florida Department of Law Enforcement (FDLE), the Manatee County Sheriff's Office, and the Bradenton Police Department. It will be prosecuted by Assistant United States Attorney Jennifer L. Peresie.
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."
Baltimore Man Indicted in Mortgage Fraud Scheme Allegedly Resulting in over $2.5 Million in Losses from Fraudulently Obtained LoansRead the Press Release
Baltimore, Maryland - A federal grand jury indicted Joshua S. Goldberg today on charges of conspiracy to commit and committing wire fraud in connection with a mortgage fraud scheme in which fraudulent loans were obtained on at least five properties.
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; Inspector General Steve A. Linick of the Federal Housing Finance Agency Office of Inspector General; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.
According to three-count indictment, from 2004 through 2008, Goldberg controlled Worthington Mortgage Group, LLC, a mortgage brokerage company which operated from offices on Gough Street in Baltimore. The indictment alleges that beginning in 2004, Goldberg conspired with Kenneth Koehler, a former business partner, David Christian, a licensed appraiser, and others, to obtain loans for Worthington Mortgage clients, including the co-conspirators, by submitting false and misleading appraisals, false bank account information, fictitious employment information and false monthly income figures. The indictment alleges that the scheme resulted in multiple loan defaults, foreclosures and loan losses to mortgage companies and financial institutions of more than $2.5 million.
Specifically, the indictment alleges that Goldberg arranged with Koehler to falsely verify the employment or income information supplied on the loan application, if called upon by the lender. Goldberg also arranged for Christian to provide false and misleading appraisals by telling Christian the dollar value to place on a property and to change the appraisal if it was too low, as well as to misrepresent the condition and physical characteristics of the property. In addition, Goldberg had Koehler, who was selling three of his properties to other co-conspirators, conceal the true purchase price of properties from the lenders, by signing the HUD-1 stating that he had received a substantial down payment from the buyers, when in fact no such payments had occurred and by kicking back part of the sales proceeds from each loan to the buyers. By concealing the true sales price for the properties, the conspirators manipulated the lenders into funding more than 100% of the purchase price, which exposed the lenders to a greater risk of loss than they anticipated.
Goldberg faces a maximum sentence of 30 years in prison and a fine of $1 million for the conspiracy and for wire fraud affecting a financial institution. Goldberg is believed to be a fugitive.
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.
Kenneth Koehler, age 42, of Baltimore, and David C. Christian, age 62, of Catonsville, Maryland, each previously pleaded guilty to conspiracy to commit wire fraud and are awaiting sentencing.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage-Fraud/index.html.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI, Federal Housing Finance Agency - Office of Inspector General, and U.S. Postal Inspection Service. Mr. Rosenstein thanked Assistant U.S. Attorney Gregory R. Bockin, who is prosecuting the case.
Arizona Man sentenced to five years in prison for drug cultivationRead the Press Release
Fairbanks, Alaska-U.S. Attorney Karen L. Loeffler announced today that an Arizona man was sentenced in federal court in Fairbanks, Alaska, on Friday, January 18, for two counts of drug trafficking.
Nathanael Harshman, 20, formerly of Fairbanks, Alaska, and recently from Tucson, Arizona, was sentenced by Chief United States District Court Judge Ralph R. Beistline to 60 months in prison, to be followed by four years of supervised release.
According to Assistant U.S. Attorney Stephen Cooper, who prosecuted the case, Harshman was one of several persons involved in a cooperative venture to manufacture marijuana and to possess it with intent to distribute by selling. Harshman pled guilty to conspiracy and also to one count of manufacturing the drug.
In entering the sentence, the judge found that Harshman had participated in cultivating more than one thousand marijuana plants in order to produce the marijuana intended for sale. The court also found that he had possessed hand guns and ammunition in connection with this commercial operation.
Ms. Loeffler commends the Drug Enforcement Administration and the Alaska Statewide Drug Enforcement Unit for the investigation of this case.
Additional Charges Filed Against Charter School Founder and Co-defendantsRead the Press Release
PHILADELPHIA – A superseding indictment was filed today against Dorothy June Brown, 75, of Haverford, Pennsylvania, charging her and with two additional counts of wire fraud and one additional count of obstruction of justice in connection with schemes to defraud three charter schools of more than $6.7 million. Charged with Brown in the 67-count superseding indictment are Joan Woods Chalker, 74, of Springfield, Pennsylvania, Michael A. Slade, Jr., 31, of Philadelphia, Pennsylvania, Courteney L. Knight, 65, of King of Prussia, Pennsylvania, and Anthony Smoot, 50, of New Castle, Delaware.
All five defendants were previously named in a 62-count indictment, filed on July 24, 2012. The original indictment alleges that Brown used her private management companies, Cynwyd Group and AcademicQuest, to defraud the Agora Cyber Charter School (“Agora”) and the Planet Abacus Charter School (“Planet Abacus”) soon after she founded the schools in 2005 and 2007, respectively. Brown is also charged with defrauding the Laboratory Charter School of Communication and Languages (“Laboratory”), a school she founded in 1997, by using Laboratory funds to pay the wages of an employee at one of Brown’s private management companies.
The new indictment includes an additional wire fraud scheme alleging that Brown and Chalker caused Laboratory to pay them approximately $214,095 in compensation that they were not entitled to receive. It further alleges that Brown and Chalker obstructed justice by fabricating Laboratory records and policies to make it falsely appear as if they were owed the payments from Laboratory due to unused vacation and sick time. The superseding indictment also includes new charges that Slade and Knight obstructed justice by fabricating board resolutions of Laboratory and another school, the Ad Prima Charter School.
Each of the wire fraud and obstruction of justice counts carry a maximum possible sentence of 20 years in prison. If convicted, the defendants face substantial terms of imprisonment and significant fines and other financial penalties.
This case was investigated by the United States Department of Education - Office of Inspector General and the Federal Bureau of Investigation. The Philadelphia Controller's Office provided assistance. It is being prosecuted by Assistant United States Attorney Anthony Kyriakakis.Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525
Monday 21 January 2013
Wheeling Man Convicted for Illegal Possession of A FirearmRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistDefendant alleged to have Fired Shot after Fight
WHEELING, WEST VIRGINIA - A Wheeling man may be headed back to federal prison after admitting to the illegal possession of a firearm as part of a shooting incident that occurred last summer.
U.S. Attorney William Ihlenfeld, II, announced that CORDALE A. WILLIAMS, 32 years old, entered a plea of guilty in federal court today to the charge of “Felon in Possession of a Firearm” resulting from an incident that occurred last June at the 7-11 convenient store on Market Street in Wheeling. WILLIAMS was recently released from prison after serving time for a federal drug trafficking conviction and was still on supervised release at the time of his latest crime.
According to testimony offered at the plea hearing this morning, Wheeling Police officers responded to a gunshot being fired after midnight on June 22, 2012, outside of the 7-11 store and upon arrival learned that WILLIAMS had been in a fight with another man over a woman. Officers learned that at some point in time during the fight WILLIAMS obtained a gun from a friend and then fired it at the person with whom he had been fighting, but failed to strike the man. WILLIAMS then chased after the man before coming came back to the 7-11 and dropping the firearm on the ground. Much of the incident was captured by a surveillance camera that was located in the area.
Due to his prior conviction for “Possession with Intent to Distribute Crack Cocaine within
1000 feet of a School” WILLIAMS was not permitted to possess a firearm.WILLIAMS faces up to ten years in prison for his conduct, as well as the possibility of additional prison time for violating the terms of his supervised release. He was remanded to the custody of the United States Marshal pending the scheduling of a sentencing hearing by Judge Frederick P. Stamp, Jr.
The case was prosecuted by U.S. Attorney Ihlenfeld and Assistant U.S. Attorney Jarod J. Douglas. It was investigated by the Wheeling Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Baltimore Immigration Judge Participates in Naturalization CeremonyRead the Press Release
BALTIMORE --Immigration Judge John F. Gossart, Jr. from the Executive Office for Immigration Review, Baltimore Immigration Court, delivered the keynote speech and administered the oath of allegiance to approximately 75 candidates during a naturalization ceremony at the George H. Fallon Federal Building in Baltimore, Md., on Jan. 18, 2013. The Baltimore District Office of U.S. Citizenship and Immigration Services, Department of Homeland Security, hosted the ceremony.
Biographical Information
Attorney General William French Smith appointed Judge Gossart in October 1982. Judge Gossart received a bachelor of science degree in 1967 from the University of Maryland and a juris doctorate in 1974 from the University of Baltimore School of Law. From 1975 through 1982, he served in various positions at the former Immigration and Naturalization Service, including general attorney, trial attorney, and deputy assistant commissioner for naturalization. Since 1997, Judge Gossart has served as an adjunct professor of immigration law at the University of Baltimore School of Law; has been a faculty member at the National Judicial College; and has guest lectured at numerous law schools and for the Maryland Institute for Continuing Professional Education of Lawyers. From 1967 to 1969, he served in the U.S. Army. Judge Gossart is a member of the Maryland State and District of Columbia Bars.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Executive Office for Immigration Review
Friday 18 January 2013
Woodbury Woman Sentenced for Using Two Identities to Receive HUD Tax Credits FraudulentlyRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 53-year-old Woodbury woman was sentenced for using an alternative identity to receive, among other things, more than $18,000 in Low Income Housing Tax Credits (“LIHTC”) from the United States Department of Housing and Urban Development (“HUD”).
United States District Court Judge Joan N. Ericksen sentenced Victoria Ayoola to two years of probation on one count of social security fraud and one count of making false statements. In addition, Ayoola was ordered to pay $18,114 in restitution. Ayoola was indicted on July 10, 2012, and pleaded guilty on August 23, 2012.
Following today’s sentencing, Michael Feinberg, Special Agent in Charge of U.S. Immigration and Customs Enforcement-Homeland Security Investigations’ St. Paul Field Office (“ICE HSI”), said, “This type of fraud poses serious security vulnerability, one that often contributes to a host of other crimes – including identity theft and financial fraud. Targeting schemes like this that enable individuals to obtain fraudulent U.S. identity documents is a top priority for ICE HSI, and we are committed to working with our law enforcement partners to detect, investigate, and dismantle this type of activity.”
In the plea agreement, Ayoola admitted that she applied for and received a social security card under the name Oluremi George on November 19, 1996. On the application, Ayoola indicated to the Commissioner of Social Security that she had never before been issued a social security number. However, Ayoola knew she already had a social security number under the name Victoria Ayoola, issued on November 26, 1991.
Since 1996, Ayoola has used both social security numbers and identities to apply for and renew Minnesota identification cards and driver’s licenses, seek and obtain employment, and file federal and state tax returns. George also used the false identity to receive a lower monthly housing rental rate by qualifying for a LIHTC rental unit at Pondview Townhomes in Woodbury.
Pondview is a low income housing development that provides housing assistance to its residents through the use of HUD loans and funds as well as through LIHTCs. To be eligible to live in one of the units, a person must make less than the federal annual tax credit income limit. In 2011, that limit for Washington County, Minnesota, was $35,280. In an effort to qualify for the subsidized housing unit, George certified that her anticipated 2011 income would be $30,930, even though she knew it would be approximately $55,887.13.
Ayoola’s fraud has resulted in more than $18,000 in underpayments of rent since 2004.
This case was the result of an investigation by ICE HSI and its Document and Benefit Fraud Task Force, the Social Security Administration’s Office of Inspector General, HUD’s Office of Inspector General, the U.S. State Department’s Diplomatic Security Service, and the Minnesota State Patrol, with assistance from the Minnesota Secretary of State’s Office. It was prosecuted by Assistant U.S. Attorney Andrew Dunne.Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary L. Hatton
www.usdoj.gov/usao/inn/ Fax: (219) 852-2770
South Bend, Indiana -- The United States Attorney’s Office announced today that:
PLEAS:
Jeffrey Cripe, 38, of Elkhart, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of distribution of child pornography.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation.Sentencing has been set for 4/18/13.These charges were filed as a result of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Indiana State Police.This case is being prosecuted by Assistant United States Attorney John Maciejczyk.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Paul Minix, 49, of Winamac, Indiana, was sentenced by District Judge Robert Miller, Jr. to 51 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.According to documents filed by the government in this case, Minix has been convicted of seven felony offenses and 10 misdemeanor convictions.This case was the result of an investigation by the by the Bureau of Alcohol, Tobacco, Firearms and Explosive.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ FAX (219) 852-2770
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Robert Lockhart, 20, of East Chicago, Indiana, a defendant in the case US v Briseno et al., pled guilty before Chief Judge Philip Simon to the felony offense of conspiracy to participate in racketeering activity. This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the East Chicago Police Department, and the Federal Bureau of Investigation, with assistance from the Gary Police Department, the Hammond Police Department and the Lake County HIDTA.The case is being prosecuted by Assistant United States Attorney David J. Nozick.
Jeremiah Stevenson, 22, of Gary, Indiana, a defendant in the case US v Elmore et al., pled guilty before Senior District Judge Rudy Lozano to the felony offenses of robbery and use of a firearm in furtherance of a robbery.Sentencing has been set for 4/11/13.These charges were filed as a result of an investigation by the Federal Bureau of Investigation, the East Chicago Police Department, the Hammond Police Department, the Gary Police Department and the Merrillville Police Department.This case is being prosecuted by Assistant United States Attorney Dean Lanter.
Lavelle Hatley, 18, of Gary, Indiana, a defendant in the case US v Elmore et al., pled guilty before Senior District Judge Rudy Lozano to the felony offense of robbery.Sentencing has been set for 4/11/13.These charges were filed as a result of an investigation by the Federal Bureau of Investigation, the East Chicago Police Department, the Hammond Police Department, the Gary Police Department and the Merrillville Police Department.This case is being prosecuted by Assistant United States Attorney Dean Lanter.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Cesar Yepez, 32, of Chicago, Illinois, was sentenced by Chief Judge Philip Simon to 1 day imprisonment considered time served as of the date of Yepez’ arrest and 2 years of supervised release, to include 12 months of home detention, after pleading guilty to the felony offense of conspiracy to distribute cocaine.This case was the result of an investigation by the Drug Enforcement Administration HIDTA Task Force.This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Kevin Weston, 34, of Hammond, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 45 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.According to documents filed by the government in this case, law enforcement officers entered Weston’s residence to execute a state search warrant. Weston admitted to hiding the firearm when he heard officers entering the house. Weston also told the officers where they could find the magazine for the firearm. The defendant has two prior convictions for controlled substance offenses (manufacture/delivery of a controlled substance) and a prior conviction for possession of a controlled substance. He also has misdemeanor convictions for battery and domestic battery and a large number of prior arrests. This case was the result of an investigation by the by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hammond Police Department.This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Efrain Hernandez, 28, of Cicero, Illinois, was sentenced by Chief Judge Philip Simon to 78 months imprisonment and 5 years of supervised release after pleading guilty to the felony offense of conspiracy to distribute and distribution of methamphetamine.This case was the result of an investigation by the Drug Enforcement Administration and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.This case was prosecuted by Assistant United States Attorney Joshua Kolar.
Frederick Rivera, 39, of Gary, Indiana, was sentenced by District Judge Robert Miller, Jr. to 52 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of distribution of crack cocaine.According to documents filed by the government in this case, Rivera made three cocaine base sales to a confidential informant while on supervised release for a prior narcotics trafficking conviction.This case was the result of an investigation by the Drug Enforcement Administration. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Virginia Man Pleads Guilty to Assaulting 10-Year-Old Child in September 2012 Attack on A Bus-Defendant Assaulted A Police Officer in Unrelated Incident on the Same Day-Read the Press Release
WASHINGTON – Donato Richardson, 34, of Roanoke, Va., has pled guilty to physically and sexually assaulting a child on a Greyhound bus and to assaulting a police officer in an unrelated incident on the same day, U.S. Attorney Ronald C. Machen Jr. announced today.
Richardson pled guilty on Jan. 14, 2013 in the Superior Court of the District of Columbia to one count each of attempted second-degree child sexual abuse, attempted second-degree cruelty to children, and assault on a police officer. He is to be sentenced by the Honorable Russell F. Canan on March 20, 2013. Richardson faces up to five years in prison for attempted second-degree sexual abuse and up to 180 days of incarceration for each of the other charges. Following his prison term, Richardson will be required to register as a sex offender for 10 years.
At the plea hearing, Richardson admitted that on Sept. 19, 2012, he boarded a Greyhound bus at the Washington D.C. terminal in Northeast Washington. The bus was en route to Richmond, Va. The victim, a 10-year-old boy, was already on the bus and sitting by himself in a window seat behind the bus driver. The child’s mother was sitting two rows behind him on the other side of the aisle. The bus left the terminal about 2 a.m., and shortly afterward Richardson leaned over the boy and asked who was watching him. Richardson then unzipped the child’s pants and sexually assaulted him. The boy pushed Richardson’s hand away and told him to stop. Richardson then grabbed the boy's sweatshirt collar and neck. The boy attempted to resist and waved his hands to attract attention.
Other passengers and the bus driver noticed the commotion. The bus driver began to slow down and pull to the shoulder of the road on the 14th Street Bridge. Richardson then opened the emergency exit window, jumped out, and ran away from the bus as the startled passengers and bus driver watched. The bus driver called 911. Law enforcement officers, including Arlington County, Va., Police and the U.S. Park Police, responded and canvassed for the suspect based on the description provided by the witnesses, but were unable to locate him.
The defendant’s identity was developed by the Metropolitan Police Department (MPD) through the subsequent investigation, and an arrest warrant was issued for Richardson.
In an unrelated incident, at about 5:20 p.m. on Sept. 19, Richardson was observed in the area between 9th and 10th Streets and Pennsylvania Avenue NW, in front of the Robert F. Kennedy Justice Building, making lunging and swiping motions at pedestrians and pulling on doors of vehicles in the street. Security officers for the Department of Justice were notified and approached Richardson to investigate this behavior.
When approached by the security officers, Richardson ran, jumped on the roof of a vehicle on Pennsylvania Avenue, and landed on the other side. Richardson was ultimately stopped by security officers in the area of 11th Street and Pennsylvania Avenue NW. When the officers attempted to restrain him, Richardson assaulted the officers, including a Special Deputy U.S. Marshal. Richardson was placed under arrest for this assault.
In announcing the plea, U.S. Attorney Machen acknowledged the work of the MPD’s Youth Investigations Division and the other agencies that investigated the case. He also praised the work of Victim-Witness Advocate Lezlie Richardson, Victim-Witness Specialist Katina Adams-Washington, William Hamann of the Criminal Investigations Unit, Paralegal Specialist Jason Manuel and Legal Assistant Tanisha Nelson. Finally, U.S. Attorney Machen commended Assistant U.S. Attorney Amy H. Zubrensky, who investigated and prosecuted the case.
13-018VRE Manager Sentenced to 24 Months for Accepting More Than $350,000 in BribesRead the Press Release
ALEXANDRIA, Va. – Kevin Wirth Jannell, 49, of Fredericksburg, Va., was sentenced today to 24 months in prison, followed by two years of supervised release, for taking more than $350,000 in bribes to ensure a Virginia Railway Express (VRE) subcontractor would be retained by VRE.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Debra Evans Smith, Acting Assistant Director in Charge of the FBI’s Washington Field Office; and Kathryn Jones, Regional Special Agent in Charge for the Department of Transportation Office of Inspector General, made the announcement after sentencing by United States District Judge Leonie M. Brinkema.
In addition to the 24-month sentence, the court ordered Jannell to forfeit $357,000 and provide 100 hours of community service.
“Bribes should never be just another cost of doing business with the government,” said U.S. Attorney MacBride. “Kevin Jannell abused his position by padding his paycheck each month and playing favorites in a contracting process that should be honest and transparent. Today’s sentence will go a long way toward rebuilding the public’s trust and demonstrating that those who corrupt the contracting process will spend years in prison paying for their crimes.”
“Mr. Jannell held a position of trust in which he was expected to impartially oversee contracts for upkeep and maintenance of VRE facilities. Instead, he took money to improve his own standing and corrupted the contracting process,” said Acting Assistant Director in Charge Smith. “Government corruption at any level is the FBI’s top criminal priority, and the Washington Field Office continues to demonstrate that we will investigate and pursue all those who choose to use their official position for personal gain.”
Jannell pled guilty on Sept. 27, 2012, to bribery concerning programs receiving federal funds. A former facilities manager for VRE, Jannell provided oversight of VRE contracts for individuals and companies providing landscaping and maintenance of VRE stations and facilities. Beginning in 2003, Jannell accepted monthly payments of up to $4,000 in return for giving favorable evaluations that would ensure an individual and this person’s company would be retained as a subcontractor for VRE.
Jannell concealed the bribes by creating a nominee company and sent monthly invoices to the subcontractor from that company, falsely billing the company for services that were never rendered. The forfeiture order states that Jannell received $357,000 in proceeds from his crime.
Authorities request that anyone with information regarding this case or similar allegations of fraud or corruption to call the FBI’s Northern Virginia Public Corruption and Government Fraud Tip Line at (703) 686-6225 or send an email to: [email protected].
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.
This ongoing investigation was initiated by FBI’s Washington Field Office and the Department of Transportation’s Office of Inspector General. Assistant United States Attorneys Mark Lytle and Jasmine Yoon from the U.S. Attorney’s Office for the Eastern District of Virginia’s Financial Crimes and Public Corruption Unit are prosecuting the case on behalf of the United States.Used Motor Vehicle Dealers Indicted in Philadelphia for Odometer TamperingRead the Press Release
A federal grand jury in Philadelphia unsealed an indictment yesterday charging Kyle Novitsky, 45, and Judith Aloe, 52, both of North Miami Beach, Fla., with making false odometer statements, securities fraud and conspiracy to commit these offenses, the Justice Department announced today. According to the indictment, as early as 2004, and through at least 2010, the defendants devised a scheme to defraud buyers of used motor vehicles by misrepresenting the mileage of approximately 247 vehicles they sold.
As part of the scheme, the indictment charges that Novitsky and Aloe purchased high-mileage, used motor vehicles in Florida, California and elsewhere from a national vehicle leasing company. The defendants are charged with conspiring to alter the odometers in these vehicles to reflect false, lower mileage. The indictment alleges that Novitsky and Aloe then fraudulently altered the motor vehicle titles and sales documentation associated with these vehicles to reflect the false, lower mileage. As a result, the commonwealth of Pennsylvania issued motor vehicle titles reflecting this false, low er mileage, which the defendants knew to be untrue.
Novitsky and Aloe subsequently sold the motor vehicles at wholesale automobile auctions in Manheim, Pa., and elsewhere, and provided to the buyers Pennsylvania titles bearing the lower false mileage. The indictment alleges that in some instances, the true mileage of the vehicle was greater than 100,000 miles more than what the title indicated, and as a result of selling the vehicles with false, lower mileages, the defendants received higher sales prices for the vehicles they sold.
“Mileage information is important for consumers to assess the value and safety of the vehicles they purchase,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Civil Division of the Department of Justice. “Automobile purchases are one of the biggest investments consumers make, and false odometer statements can cause the buyers of these vehicles to lose thousands of dollars of their hard-earned money. In these difficult economic times, we take seriously our obligation to prosecute those who engage in this serious form of fraud.”
The charges in the indictment are only allegations, and the defendants are presumed innocent unless and until proven guilty. Principal Deputy Assistant Attorney General Delery thanked the Office of Odometer Fraud Investigation at the National Highway Traffic Safety Administration, U.S. Department of Transportation, for their assistance in investigating and prosecuting this case
U.S. Attorney Reports to White Center Community on 'Hot Spot' InitiativeRead the Press Release
U.S. Attorney Jenny A. Durkan reported to the White Center Community today about law enforcement efforts to enhance the safety of the community. In the fall of 2011, White Center was the focus of a coordinated 'Hot Spot' initiative, designed to bring concerted law enforcement and community resources together in one geographic area.
The multi-agency, federal and local law enforcement operation, called “Center of Attention,” that ended in late October 2011, focused on violent offenders who used White Center to engage in criminal activity. The King County Prosecutor’s Office and the U.S. Attorney’s Office have been working hard with our law enforcement partners to bring those offenders to justice.
Among the 25 federal defendants, nearly all have now been convicted and sentenced. Two dozen have pleaded guilty or were convicted at trial, including the successful prosecution of an armed career criminal just before the end of the year. That defendant, Michael Gradney, faces a 15-year mandatory minimum sentence.
To date, 21 defendants have been sentenced to prison, including significant prison time for defendants selling large amounts of dangerous drugs and firearms. In fact, the total amount of prison time that judges have imposed on the federal Center of Attention defendants is nearly 1400 months, or 115 years.
Here are two of the press releases announcing significant sentences:
http://www.justice.gov/archive/usao/waw/press/2012/November/rosas-martinez.html
http://www.justice.gov/archive/usao/waw/press/2012/November/magna.htmlOf the 26 state prosecutions, some have resulted in guilty findings while many are still pending. State prosecutors are pursuing convictions and sentences in line with the goals of “Center of Attention.”
In addition to “Center of Attention” defendants, the owner of the former G.A.M.E. marijuana lounge pleaded guilty to a federal felony and was sentenced to six months of federal probation. Federal probation is very rigorous, with close supervision by a federal probation officer and the possibility of prison time for up to three years if the defendant does not follow the probationary conditions. Judge Ricardo Martinez indicated he would be watching very closely to ensure the owner of G.A.M.E. did not violate any conditions of his probation.
And, just last week, as part of our ongoing enforcement efforts, prosecutors in our office convicted a man who committed an armed robbery of the Chase bank located at SW 100th Street and 16th Avenue.
Your can read the U.S. Attorney's Letter to the community here:
white_center_ltr.pdfTwo Southwest Washington Men Sentenced to Long Prison Terms for Methamphetamine TraffickingRead the Press Release
Two Southwest Washington men who trafficked more than three pounds of highly pure methamphetamine were each sentenced today to more than 10-years in prison, announced U.S. Attorney Jenny A. Durkan. STEVEN MCCRACKEN, 32, of Kelso, Washington and JESUS RAMIREZ-LUCIO, 33, of Washougal, Washington were each sentenced to 14 years in prison and five years of supervised release. The men were convicted of conspiracy to distribute methamphetamine in October 2012, following a six day jury trial. RAMIREZ-LUCIO was also convicted of distribution of methamphetamine, and MCCRACKEN was convicted of possession of methamphetamine with intent to distribute. At sentencing U.S. District Judge Ronald B. Leighton said, “Methamphetamine destroys families. The community has a right to protect itself from those who would ply them with methamphetamine.”
According to records filed in the case and testimony at trial, a person working with police alerted members of the Clark Vancouver Regional Drug Task Force that MCCRACKEN and RAMIREZ-LUCIO were planning the drug deal. The men met at a Kelso, Washington home on March 25, 2011, where MCCRACKEN paid RAMIREZ-LUCIO more than $34,000 for three pounds of methamphetamine. After the drug deal, both men were followed by law enforcement as they left the house. Police pulled MCCRACKEN over on I-5. As the law enforcement officer approached the driver’s window, MCCRACKEN pulled out into traffic, leading police on a chase at speeds up to 90 MPH. On the Route 432 bridge, MCCRACKEN pulled to the side of the road, left the car running and threw bags of methamphetamine into the Cowlitz River. MCCRACKEN was arrested, and other officers retrieved bags of meth floating in the river. Some of the meth was damaged, but one of the bags was intact. RAMIREZ-LUCIO was arrested as he traveled back to Vancouver with more than $34,000 in cash in a shopping bag in his car. In a search of RAMIREZ-LUCIO’s home police recovered four firearms and a marijuana grow with more than 700 plants.
MCCRACKEN has been convicted three prior times in state court for distributing methamphetamine: Cowlitz County Superior Court, 1999; Clark County Superior Court 2002 and Josephine County Circuit Court (Oregon) 2006.
The case was investigated by the FBI’s Safe Streets Task Force, which includes officers from the FBI and the Vancouver Police Department, the Cowlitz-Wahkiakum Narcotics Task Force, which includes officers from the Kelso Police Department and the Cowlitz County Sheriff’s Office, among others, and the Clark Vancouver Regional Drug Task Force.
The case was prosecuted by Assistant United States Attorneys Brian Werner and Michael Lang.