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6 March 2013
Tyler Schaeffer and Two Codefendants Charged in Armed Robbery SpreeRead the Press Release
All Face Lengthy Prison Terms For Using Firearms In The Commission Of Violent Crimes
KNOXVILLE, Tenn. - A federal grand jury in Knoxville returned a 14-count indictment on Mar. 5, 2012, against Tyler Schaeffer, 21, of Seymour, Tenn., for one count of conspiracy to commit Hobbs Act robbery, seven counts of Hobbs Act robbery, four counts of brandishing a firearm during a robbery, one count of conspiracy to distribute and possess with intent to distribute methylone, and one count of possessing a firearm in furtherance of a drug trafficking crime. In that same indictment, Jerel Bray-Shawn Johnson, 20, of Knoxville, Tenn., was charged in the conspiracies to commit Hobbs Act robbery and to distribute and possess with intent to distribute methylone, as well as two counts of Hobbs Act robbery, and two counts of brandishing a firearm during a robbery. Lastly, Rodney James Ruffin, 21, of Sevierville, Tenn., was charged in the same indictment with conspiracy to commit Hobbs Act robbery, one count of Hobbs Act robbery, and one count of brandishing a firearm during a robbery.
On Mar. 6, 2013, Jerel Bray-Shawn Johnson appeared before U.S Magistrate Judge C. Clifford Shirley, Jr., and entered pleas of not guilty to all charges. Johnson was detained pending trial, which is set for May 14, 2013.
If these individuals are convicted, they face significant mandatory minimum terms of in prison for the firearm offenses. Schaeffer faces not less than 107 years in prison, Johnson not less than 32 years, and Ruffin not less than seven years. They each face additional prison time for the robberies and drug trafficking crimes, which must be served consecutively to the prison time imposed for the firearm offenses. There is no parole in the federal system.
This indictment is the result of an investigation by the FBI Safe Streets Task Force, which includes members of the Knoxville Police Department and Knox County Sheriff’s Office, Office of James B. Dunn, District Attorney General for the Fourth Judicial District, Tennessee Highway Patrol, Sevier County Sheriff’s Office, and Alcoa Police Department. Assistant U.S. Attorneys Tracy L. Stone and Kelly A. Norris will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
Two Indicted on Federal Charges of Unlawful Sale of Eagle FeathersRead the Press Release
TOPEKA, KAN. – Ruben Dean Littlehead, 38, Lawrence, Kan., and Brian K. Stoner, 32, Ponca City, Okla., are charged with unlawfully selling feathers from eagles and hawks covered by a federal law protecting migratory birds, U.S. Attorney Barry Grissom said today. The crimes are alleged to have occurred in Douglas County, Kan.
Federal law (Title 16, United States Code, Section 703) prohibits taking, killing or possessing migratory birds. The U.S. Fish and Wildlife Service maintains a National Eagle Repository in Colorado for the purpose of providing Eagle feathers to Native Americans for use in Indian religious and cultural ceremonies. For more information, see:
http://www.fws.gov/le/national-eagle-repository.html
The indictment alleges:
On Sept. 15, 2008, Littlehead sold a bustle made with 68 feathers from a Golden eagle (Aquila chrysaetos).
On Nov. 22, 2008, Littlehead sold 11 tail feathers and a wing from a Golden eagle (Aquila chrysaetos).
On Feb. 26, 2009, Littlehead and Stoner offered for sale parts of a Bald eagle (Haliaeetus leucocephalus), a Golden Eagle (Aquila chrysaetos), and a Crested Caracara (Mexican Eagle, Caracara cheriway). They sold a tail feather fan made from feathers of a Bald eagle.
On Feb. 26, 2009, they sold a bustle made of feathers of a rough-legged hawk and ferruginous hawk (Bueto lagopus and Buteo regalis).
If convicted, they face a maximum penalty of five years in federal prison and a fine up to $250,000 on each count. The U.S. Fish and Wildlife Service investigated. Assistant U.S. Attorney Randy Hendershot is prosecuting.
OTHER INDICTMENTS
Robert Eugene Gibson, 26, who is being held in the Shawnee County Jail, is charged with one count of bank robbery. The indictment alleges that on Feb. 22, 2013, he robbed the Lyndon State Bank at 1535 S.W. Fairlawn Road in Topeka.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
John Duncan, 52, Topeka, Kan., is charged with one count of bank fraud and one count of money laundering. The crimes are alleged to have occurred in Douglas County, Kan. in April 2008. The indictment alleges that Duncan, who at the time was the Chief Financial Officer of Schmidt Builders Supply, Inc., and a member in Blue Jay Properties L.L.C., provided false information to University National Bank of Lawrence, Kan., to support a $15.2 million construction loan to Blue Jay Properties. Blue Jay properties was formed to develop the Quinton Pointe Apartments project in Junction City, Kan., and the loan was for the purpose of funding the apartment project. It is alleged that Duncan and the members in Blue Jay Properties needed to provide $1.225 million in collateral and that Duncan wrote a letter to UNB falsely representing that all the lumber for the project, representing collateral for the loan, was prepaid in full and being held by Schmidt Builders. The money laundering charge alleges Duncan made a wire transfer of the money obtained through the bank fraud.
If convicted, he faces a maximum penalty of 30 years and a fine up to $1 million on the bank fraud count; and a maximum penalty of 10 years on the wire fraud count. The Internal Revenue Service, Criminal Investigations Division; Federal Deposit Insurance Corporation, Office of Inspector General; Federal Reserve Board, Office of Inspector General; and U.S. Department of Labor, investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
Taron Alonzo Huggins, 24, who is being held in the Shawnee County Jail, is charged with one count of unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred Jan. 25, 2013, in Shawnee County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
John T. Arlett, 43, Florissant, Mo., is charged with one count of possession with intent to distribute more than 100 kilograms of marijuana. The crime is alleged to have occurred Dec. 19, 2012, in Wabaunsee County, Kan.
If convicted, he faces a penalty of not less than five years and not more than 40 years in federal prison and a fine up to $5 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
Juan D. Morales, 26, is charged with one count of unlawful possession of a firearm after a felony conviction and one count of knowingly possessing a stolen firearm. The crimes are alleged to have occurred March 7, 2010, in Ford County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count. The Ford County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Carlos Gonzalez-Gonzalez, 55, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Feb. 4, 2013, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 20 years and a fine up to $250,000. ICE’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Alfredo Cruz-Nino, 24, a citizen of Mexico, is charged with two counts of unlawful possession of a firearm by an illegal alien, one count of possession with intent to distribute marijuana and one count of unlawfully re-entering the United States after being deported. He was found Feb. 13, 2013, in Sedgwick County, Kan.
Upon conviction, the crimes carry the following penalties: Unlawful possession of a firearm by an illegal alien: A maximum penalty of 10 years in federal prison without parole and a fine up to $250,000 on each count.
Possession with intent to distribute marijuana: A maximum penalty of 20 years and a fine up to $250,000.
Unlawful re-entry: A maximum penalty of two years and a fine up to $250,000.ICE’s Fugitive Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Rosendo Lopez-Rojas, 32, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Feb. 27, 2013, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. ICE’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Three Sentenced for Conspiring to Distribute CocaineRead the Press Release
MINNEAPOLIS—Yesterday in federal court in St. Paul, a 26-year-old Robbinsdale man was sentenced for conspiring to distribute approximately 249 grams of cocaine. United States District Court Judge Susan Richard Nelson sentenced Brian Funtaneous Mack to 51 months in prison on one count of conspiracy to possess with intent to distribute cocaine. He was indicted on July 23, 2012, along with McCelendon Miller, age 26, and Kelly Suzette Chase, age 28, both of Burnsville.
On March 4, 2013, Judge Nelson sentenced Miller to 52 months in federal prison and Chase to a probationary sentence each on one count of conspiracy. He pleaded guilty on September 28, 2012. In his plea agreement, Miller admitted his role in the conspiracy. Chase and Mack pleaded guilty on September 26, 2012.
In their plea agreements, the three defendants admitted that from January 2012 through February 9, 2012, they conspired with each other and others to possess with intent to distribute cocaine. Miller made arrangements to obtain cocaine from a source in Chicago, and after Miller’s arrest, his girlfriend, Chase, obtained the cocaine from Mack. Miller also directed Chase to store the cocaine in their Burnsville apartment. On February 9, 2012, during the execution of a search warrant at that apartment, officers seized 249 grams of cocaine, along with a firearm, in a safe.
This case was the result of an investigation by the Twin Cities Safe Streets Violent Gang Task Force, which is led by the FBI and includes the Minneapolis Police Department. The mission of the task force is to investigate and target the most violent gangs operating in the Twin Cities or those gangs engaged in the large-scale trafficking of illegal drugs. This case was prosecuted by Assistant U.S. Attorney LeeAnn K. Bell.Three Former Delta Air Lines Employees Conspired to Import Illegal Drugs into Hartsfield-Jackson AirportRead the Press Release
Over $614,000 Worth of Methamphetamine and Heroin Seized From
Delta Air Lines Flight from Mexico CityATLANTA - Luis Marroquin, 36, of Atlanta, Ga., Carlos R. Springer, 42, of Hampton, Ga., and Kelvin Rondon, 28, of Miami, Fla., were sentenced today by United States District Judge Orinda Evans for conspiracy to possess with the intent to distribute methamphetamine and heroin.
“We serve the citizens of our district by promoting healthy and safe communities and we will prosecute anyone who uses our airports to import deadly drugs,” said United States Attorney Sally Quillian Yates. “People have a reasonable expectation when boarding an airplane that airline personnel will be professionals who value their safety,” she said, “and will not expose them to illegal activity.”
According to United States Attorney Yates, the charges and other information presented in court: On January 13, 2012, Delta Air Lines flight 364 arrived at the Atlanta Hartsfield-Jackson International Airport from Mexico City. A Delta agent discovered an unclaimed piece of luggage at a baggage carousel with a tag for flight 364. Customs and Border Protection agents inspected the luggage, and determined that it contained multiple packages of suspected illegal narcotics. Later that same day, Springer was interviewed by Homeland Security Investigations agents. Springer was the performance leader for the shift of ramp employees who off-loaded the baggage on flight 364.
During a search of Springer’s cellular telephone, agents found coded, incriminating text messages between Springer and Marroquin around the time of the arrival of the flight. Rondon was observed on the video of the arrival and unloading of flight 364, although he was off-duty and had no authorization to work the flight.
Agents also learned that Marroquin recruited Rondon. Rondon was to make sure that the bag was on the flight, and was to be paid $500 per package. The day before flight 364 arrived Rondon was shown a photo of the drug-laden bag on Marroquin’s telephone. Rondon stated when he arrived on the tarmac he helped unload the cargo and attempted to find the bag but was unsuccessful.
“The security of critical infrastructure like Hartsfield-Jackson Airport is a key national security concern,” said Brock D. Nicholson, Special Agent in Charge of ICE Homeland Security Investigations in Atlanta. “HSI special agents and our partners like U.S. Customs and Border Protection and the Delta security team are committed to identifying those who seek to exploit the system and ensuring they are held accountable for their actions.”
Following the return of the indictment on May 1, 2012, Marroquin fled the Atlanta area but was apprehended several days later in a residence in Coral Springs, Fla.
Marroquin was sentenced to 15 years, 8 months in prison to be followed by 5 years of supervised release.
Springer was sentenced to 11 years, 3 months in prison to be followed by 5 years of supervised release.
Rondon was sentenced to 5 years, 3 months in prison to be followed by 5 years of supervised release.
Marroquin, Springer, and Rondon were convicted of the above charges upon their pleas of guilty last year.
This case was investigated by Special Agents with the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Task Force Officers, with assistance from Delta Air Lines Corporate Security,
Assistant United States Attorney Michael Herskowitz prosecuted the case.
The U.S. Attorney's Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Steuben County Woman charged with Kidnaping Woman and Her 6 Month-old DaughterRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Billie Jo Ribble, 35, of Bath, N.Y., was arrested and charged by criminal complaint with kidnaping a mother and her six-month old child. The charges carry a mandatory minimum sentence of 20 years in prison and a maximum of life in prison.
Assistant U.S. Attorney Brett A. Harvey, who is handling the case, stated that according to the complaint, the defendant abducted a mother and her six month-old child in Pennsylvania on March 1, 2013. At that time, Ribble was wanted by the Steuben County Sheriff's Office on charges of burglary and grand larceny, in relation to a residential burglary that occurred in October 2012. On March 1, investigators from the Steuben County Sheriff's Office and Pennsylvania State Police located and arrested Ribble in Mansfield, Pennsylvania. After being remanded to the Tioga County Jail in Pennsylvania, Ribble, who is pregnant, was taken to the hospital in Wellsboro, Pennsylvania, for treatment in the maternity ward. While there, the defendant became violent, assaulted a Tioga County Corrections Officer who was assigned to guard her, and escaped the hospital by climbing out a window.
Later on March 1, a woman and her six month-old daughter were asleep in the basement bedroom of a residence in Wellsboro. At 11:30 p.m., the woman was awakened by Ribble, who was standing over her daughter's crib holding a large butcher's knife. The defendant picked up the child, while still holding the knife, and threatened to kill the woman, her child, and herself, if the woman did not take Ribble where she wanted to go. Thereafter, the woman got into the driver's seat of her car and Ribble got into the front passenger seat, still holding the woman's daughter and the butcher's knife. At the direction of Ribble, the woman drove from Pennsylvania to an exit off Route 15 in Lindley, New York, where the defendant was dropped off. The woman then drove to a gas station in Pennsylvania and called police. After urgent investigation by the Steuben County Sheriff's Office and the New York State Police, the defendant was located at her boyfriend's residence in Corning, New York. Ribble initially barricaded herself in the attic, but eventually surrendered to authorities without incident.
The complaint 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, the Steuben County Sheriff's Office, under the direction of Sheriff David Cole, the New York State Police, under the direction of Major Mark Koss, the Pennsylvania State Police, under the direction of Commanding Officer, Captain David J. Young, and the Wellsboro (Pennsylvania) Police Department, under the direction of Chief Jim Bodine.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
St. Michael Man Pleads Guilty to Involuntary ManslaughterRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on March 6, 2013, Jamie Lee Belgarde of St. Michael, N.D., pleaded guilty before U.S. District Judge Ralph R. Erickson to a charge of involuntary manslaughter.
On June 23, 2012, Belgarde, 38, while intoxicated and driving at a high rate of speed, failed to negotiate a curve in the road, causing the vehicle to leave the road. The vehicle vaulted, rolled, and eventually came to rest upside down in a field.
Belgarde’s brother, Donald Belgarde, Jr., who was a passenger in the vehicle, was pronounced dead at the scene. The incident happened on the Spirit Lake Indian Reservation.
The charge of involuntary manslaughter carries a statutory maximum penalty of eight years' imprisonment.
The case was investigated by the Federal Bureau of Investigation and Bureau of Indian Affairs.
Sentencing for Belgarde has been scheduled for May 29, 2013, in U.S. District Court in Fargo, N.D., at 11:45.
Assistant U.S. Attorney Janice M. Morley is prosecuting the case
Springfield Businessman Indicted for $3.3 Million Fraud SchemesRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., businessman has been indicted by a federal grand jury for a series of bank fraud and wire fraud schemes that totaled more than $3.3 million in losses, as well as for money laundering and bankruptcy fraud.
“Several local financial institutions suffered significant losses from a series of bank fraud schemes,” Dickinson said. “These are not victimless crimes, and we will aggressively prosecute those who seek to profit from financial crimes.”
Richard Thomas Gregg, 57, of Springfield, was charged in a 17-count indictment returned under seal by a federal grand jury on Feb. 28, 2013. That indictment was unsealed and made public today upon Gregg’s arrest and initial court appearance.
Gregg is charged with four counts of bank fraud, 10 counts of money laundering, two counts of wire fraud and one count of bankruptcy fraud.
David L. Anderson, Special Agent in Charge of the Kansas City Region of the FDIC Office of Inspector General, said, “Those individuals who engage in bank fraud and money laundering schemes undermine the integrity of the banking and financial services industry. The FDIC OIG is committed to stopping these illegal acts.”
“The federal indictment alleges that Mr. Gregg’s actions led to losses at several financial institutions,” said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. “IRS CI is proud to provide our financial expertise as we work alongside our law enforcement partners to investigate these alleged illegal activities and hold those responsible for their actions.”
Gregg was the principal shareholder and director of Southwest Community Bank in Springfield, which failed in May 2010. He and his wife were majority shareholders in Glasgow Savings Bank in Glasgow, Mo., which failed in 2012. Prior to Glasgow Savings Bank’s failure, it was one of the oldest operating banks west of the Mississippi River. Gregg was also a real estate developer, investor and a licensed insurance agent for the Shelter Mutual Insurance Company. Gregg had ownership interest in and controlled a number of business entities.
According to the indictment, Gregg and his business entities accumulated substantial debt. On a personal financial statement the defendant provided to Great Southern Bank in November 2009 he reported more than $65 million in total liabilities. As of Feb. 28, 2013, the indictment says, approximately $14.6 million of the known debt attributable to Gregg and his business entities had been “charged off” by the creditor financial institutions, meaning they had defaulted and the financial institution had “written off” part or all of the loan because it determined the debt was not collectable.
Fremont Property
The federal indictment alleges that Gregg engaged in a scheme to defraud Southwest Community Bank in 2008. As a part of this bank fraud scheme, the indictment says, Gregg sold the bank a piece of commercial real estate at 2814 S. Fremont in Springfield for $1,551,944. Gregg allegedly knew that amount was significantly above fair market value.
Gregg, who was Southwest Community Bank’s principal shareholder and was on its Board of Directors, did not disclose to the bank that he had purchased that property for $775,000 a few months earlier, the indictment says, nor did he disclose to the bank that two appraisals had been conducted on the property in recent months. One appraisal valued the property at $762,000. The second appraisal was cancelled when Gregg disagreed with the preliminary work. After Gregg cancelled the appraisal, the indictment says, his son (who worked at Southwest Community Bank) ordered an appraisal of the Fremont property by another appraiser, who valued the property at $1,580,000. Gregg allegedly did not disclose to the bank that this appraisal was not an independent valuation of the property, but rather was something Gregg had, in essence, directed.
The indictment charges Gregg with four counts of money laundering related to this bank fraud scheme.
Stock Shares
In February 2009 Gregg borrowed $2 million from Great Southern Bank, using 160,000 shares of stock for First Bancshares, Inc. (FBSI), the holding company for First Homes Savings Bank, as collateral. Gregg physically deposited the stock certificate with Great Southern Bank.
According to the indictment, on May 6, 2009, with a $1.5 million balance remaining on the loan from Great Southern Bank, Gregg checked out the original FBSI stock certificate from Great Southern Bank, using as a pretext the stated purpose of separating the large certificate into multiple smaller certificates. He signed a trust receipt promising to return to the certificate to the bank within 30 days. Instead, the indictment says, Gregg deposited the collateralized FBSI shares into his account at Scottrade, a privately-owned retail brokerage firm located in St. Louis, Mo. On May 28, 2009, Gregg allegedly borrowed $440,000 from Scottrade, from the margin account on which the defendant used the FBSI stock as collateral. Gregg chose not to return the FBSI certificate or any proceeds he received to Great Southern Bank, according to the indictment, and instead used the funds for other purposes.
Collectible Cars
The federal indictment charges Gregg with two counts of bank fraud related to schemes to use collectible automobiles as collateral to obtain loans, then sell the automobiles without paying back the loans. In January and February 2010 Gregg allegedly executed separate but related schemes to defraud Great Southern Bank, Metropolitan National Bank and People’s Bank of the Ozarks. As a part of these schemes, the indictment says, Gregg sold seven collectible automobiles at the Barrett-Jackson Auto Auction in Scottsdale, Ariz. Five of the automobiles were encumbered at the three banks.
According to the indictment, Gregg borrowed $400,000 from Great Southern Bank in October 2007, which he secured with four collectible automobiles, including a 2006 Ford GT. Gregg consigned the 2006 Ford GT with the Barrett-Jackson Auto Auction in Scottsdale, Ariz., where on Jan. 23, 2010, the vehicle was sold at auction for approximately $150,000. Gregg allegedly chose to not return the proceeds of the sale of the Ford GT ($138,000 after deducting the auctioneer’s fee) to Great Southern Bank and instead used the funds for other purposes. When Gregg defaulted on the loan, Great Southern Bank realized a $129,644 loss.
According to the indictment, Gregg borrowed $400,000 from Metropolitan National Bank in 2005. He secured this loan with a “floor plan” financing, meaning the loan was a revolving line of credit made against specific pieces of collateral, in this case automobiles. When each vehicle on the floor plan was sold, the loan advanced against that piece of collateral was to be repaid. This loan was renewed in December 2009. In January 2010, the collateral included a 1971 Chevy Cheyenne Pickup. The portion of the loan’s balance collateralized by the 1971 Chevy Cheyenne Pickup was $17,221. Gregg also consigned the 1971 Chevy Cheyenne Pickup with the Barrett-Jackson Auto Auction, the indictment says, and it was sold for approximately $29,000. Gregg allegedly chose to not return the proceeds of the sale ($26,680 after deducting the auctioneer’s fees) to Metropolitan National Bank and instead used the funds for other purposes. When Gregg defaulted on the loan, Metropolitan National Bank realized a $17,221 loss.
The indictment charges Gregg with six counts of money laundering related to these bank fraud schemes.
Oklahoma Casinos
The federal indictment charges Gregg with two counts of wire fraud related to bounced checks at two Oklahoma casinos.
On Jan. 3,2012 Gregg allegedly presented five checks, payable to Buffalo Run Casino in Miami, Okla., each in the amount of $10,000. Gregg allegedly knew his credit union account contained insufficient funds to cover those checks.
Between Feb. 16 and March 1, 2012, Gregg allegedly presented five checks payable to Downstream Casino and Resort in Quapaw, Okla., in the total amount of $60,000. Gregg allegedly knew his bank account contained insufficient funds to cover those checks.
Bankruptcy Fraud
On Aug. 14, 2012, Gregg allegedly made false declarations by submitting false Schedules of Assets and Liabilities and a false Statement of Financial Affairs in his bankruptcy proceedings. Gregg stated that the bankruptcy debtor, 1717 Marketplace, LLC, owed him $868,000 for a “personal loan,” and owed another person $801,000 for a “personal loan.” In fact, as Gregg knew, neither he nor the other person had lent 1717 Marketplace, LLC funds in those amounts.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the FDIC Office of Inspector General and IRS-Criminal Investigation.Special Agent for Hacienda Sentenced to 18 Months Incarceration for Bribing an Hacienda Tax AuditorRead the Press Release
SAN JUAN, P.R. – Ricardo Fernàndez-Ramos was sentenced to 18 months incarceration, followed by three years supervised release, and 200 hours of unpaid community service by United States District Court Judge Carmen Consuelo Cerezo for bribing one of his colleagues at the Puerto Rico Department of Treasury (“Hacienda”), announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. At the time of his arrest on public corruption charges, back in July of 2011, Fernàndez-Ramos held the position of Special Agent for the Department of Hacienda assigned to the Tax Crimes Division in the Mayagüez District where he was responsible for investigating tax evasion crimes committed against the Government of Puerto Rico.
The Indictment in this case charged that from approximately September 2010 through December 2010, Fernàndez-Ramos corruptly gave, offered, and agreed to give a thing of value, namely $12,500 in cash, to an Hacienda tax auditor for the purpose of influencing and rewarding her in relation to an audit that she was conducting on the 2008 and 2009 individual tax returns of an Isabela business owner.
As part of his plea agreement with the United States government, Fernàndez-Ramos was permitted to argue for a sentence as low as probation, while the United States reserved the right to argue for a sentence as high as 18 months incarceration. During the sentencing hearing, the government argued that this was a classic case of public corruption and that a sentence of probation would send the wrong message to the community at large—a message that indeed Puerto Rico was the “Isla de Chanchullo,” or “Island of Deceit.” In the end, the Court stated for the record that the reasons presented by the defense in favor of a sentence of probation fell well short of their mark. Instead, the Court ruled that, given the facts of this case, incarceration was the more appropriate sentence. The Court granted Fernàndez-Ramos until April 1, 2013, to voluntarily surrender himself to the Federal Bureau of Prisons. The case was prosecuted by Assistant U.S. Attorney Marshal D. Morgan.
“This case should serve as a stark reminder to everyone that if you engage in public corruption and steal from the Government of Puerto Rico, you should plan on spending the next few years of your life in a Federal prison,” stated U.S. Attorney Rodríguez-Vélez. The Puerto Rico community can rest assured that the investigation and prosecution of public corruption crimes is one of the highest priorities of the United States Department of Justice.”
“Combating public corruption is a priority for the FBI in San Juan,” said Carlos Cases, Special Agent in Charge of the FBI-San Juan Field Office. “We will continue to aggressively investigate and bring to justice any public official who abuses the public's trust and use their position for personal gain”.
Sherron Grace American Horse Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on March 6, 2013, before Chief U.S. District Judge Richard F. Cebull, SHERRON GRACE AMERICAN HORSE, a 38-year-old resident of Ashland and an enrolled member of the Northern Cheyenne Tribe, pled guilty to involuntary manslaughter and assault resulting in serious bodily injury. Sentencing has been set for June 5, 2013. She is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On June 22, 2012, law enforcement responded to a car crash on the Northern Cheyenne Indian Reservation at approximately 1:00 p.m. The officers found one deceased passenger lying outside of the car. Several other passengers were also at the scene and suffered minor to severe injuries. All at the scene identified AMERICAN HORSE as the driver.
While taking photographs at the scene, the officers saw footprints leading away from the crash site and followed them. They found AMERICAN HORSE lying near the road. She appeared to be sleeping. The officers woke her up to determine if she needed medical attention. As she sat up, an unopened can of malt liquor was under her body. Her speech was slurred.
AMERICAN HORSE was taken by ambulance to the Lame Deer Clinic and later treated at the Billings Clinic. A blood alcohol sample was taken some hours after the crash and registered a .169.
AMERICAN HORSE was interviewed several days later. She admitted that she had been drinking and driving at the time of the crash. Through her admissions, the statements of the surviving passengers, and the investigation at the scene, law enforcement learned that AMERICAN HORSE was very drunk, lost control of the car, and rolled the car at least four times. She caused the death of one passenger and another passenger suffered a spinal injury that has resulted in partial paralysis.
AMERICAN HORSE faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release on the involuntary manslaughter charge and 8 years in prison, a $250,000 fine and 3 years supervised release on the assault resulting in serious bodily injury charge.
The investigation was a cooperative effort between the Bureau of Indian Affairs and the Federal Bureau of Investigation.
Sex Offender Sentenced for Possessing Child PornographyRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 29-year-old registered sex offender from Woodland Township in central Minnesota was sentenced for possession of child pornography. United States District Court Judge Patrick J. Schiltz sentenced Jeremy Lee Klepperich to 160 months in prison on one count of possession of child pornography. Klepperich was charged on July 31, 2012, and pleaded guilty on October 2, 2012. Because the federal system does not have parole, Klepperich will serve virtually his entire prison sentence behind bars.
In his plea agreement, Klepperich admitted that on June 6, 2012, he possessed one or more matters containing visual depictions of a minor engaged in sexually explicit conduct. Klepperich owned a computer thumb drive containing approximately 4,270 images and 56 videos of child pornography.
In 2011, Klepperich pleaded guilty in state court in Wright County on one count of possession of pornography by a sex offender. The sentence in that case mandated that Klepperich, whose prison term was stayed, refrain from possessing any drugs, drug paraphernalia, pornography, or other sexually explicit material. On two different occasions (April 27, 2011 and June 7, 2012), Klepperich was arrested by local law enforcement for violating the terms of his 2011 stay of sentence. An unnamed individual informed authorities of Klepperich’s thumb drive among other digital media, which contained child pornography. Klepperich’s criminal history includes a 1997 McLeod County, Minnesota, conviction for sexual penetration of a minor male he was babysitting and a 2009 conviction in Hennepin County for failure to register as a predatory offender.
This case was the result of an investigation by the Minnesota Child Exploitation Task Force, which is sponsored by the Federal Bureau of Investigation. Assistance was provided by the Minnesota Department of Corrections, the Hutchinson Police Department, and the Wright County Sheriff’s Office, which is an affiliate of the Minnesota Internet Crimes Against Children Task Force. The case was prosecuted by Assistant U.S. Attorney Laura M. Provinzino.Possession of child pornography is against the law. In addition to prosecuting these cases, the Justice Department is presently funding a study focused on the correlation between involvement in child pornography and hands-on sexual abuse of children. A 2008 study (The Butner Study) published in the Journal of Family Violence found that up to 80 percent of federal inmates incarcerated for possession, receipt, or distribution of child pornography also admitted to hands-on sexual abuse of children, ranging from touching to rape.
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 U.S. 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 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.”Rosebud Man Pleads Guilty to Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that Aaron Sharpfish, age 21, of Rosebud, South Dakota appeared before U.S. District Judge Roberto A. Lange on March 5, 2013 and pled guilty to Assault with a Dangerous Weapon. The maximum penalty upon conviction is 10 years in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 special assessment.
The conviction stems from an incident that took place on November 21, 2011 when Sharpfish hit the victim causing him to fall to the ground. Sharpfish then kicked the victim in the head and face several times causing a fracture to the victim’s eye.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
A presentence investigation was ordered and a sentencing date was set for May 15, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Rochester Man Sentenced for Role in Drug ConspiracyRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Angel Gonzalez, 28, of Rochester, N.Y., who was convicted of conspiracy to possess with intent to distribute 500 grams or more of cocaine, was sentenced to 97 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorneys Jennifer M. Noto and Robert A. Marangola, who handled the case, stated that between June 2011 and June 2012, the defendant participated in an armed drug conspiracy operating in the Rochester, New York area. Gonzalez and other members of the conspiracy were responsible for the distribution of significant quantities of cocaine and crack cocaine throughout the Rochester area. The investigation involved court-authorized wire taps and resulted in the arrest of nine related defendants. To date, eight of the nine defendants have been convicted. Angel Gonzalez is the first defendant to be sentenced in connection with this armed drug distribution ring.
The sentencing is the culmination of an investigation on the part of Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Scott Heagney and Investigators of the Rochester Police Department, under the direction of Chief James Sheppard.Robeson County Man Convicted in Drug ConspiracyRead the Press Release
RALEIGH - United States Attorney Thomas W. Walker announced that in federal court today Chief District Court Judge James C. Dever sentenced KENDALL LADELL BLUE, 34, of Red Springs, North Carolina, to 21 years’ imprisonment for his role in a drug trafficking conspiracy.
On October 25, 2011, a grand jury in the Eastern District of North Carolina issued an indictment charging BLUE with Conspiring to Possess with Intent to Distribute and Distribute 28 Grams or More of Crack Cocaine, several counts of Distributing Crack Cocaine and other related charges. On August 8, 2012, after a jury trial, BLUE was convicted of all the drug charges.
The evidence in the case established that from 2002, up through and including April 15, 2010, BLUE was operating a garage off of Huggins Road in Red Springs, North Carolina. During that time frame, BLUE bought cocaine from several sources of supply and then sold the substance as crack cocaine to other customers for re-distribution. According to the evidence presented at the sentencing, BLUE was armed with a firearm during each drug transaction. The evidence also established that BLUE provided a materially false affidavit to the presiding judge prior to trial. Based on BLUE’s role in the drug trafficking conspiracy, he was sentenced to 252 months’ imprisonment and 4 years of supervised release following his prison term.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives as well as the Robeson County Sheriff's Office. Assistant United States Attorney Rudy E. Renfer represented the government.
Renewal, Inc. Resident Charged with Escaping from Federal CustodyRead the Press Release
PITTSBURGH, Pa. - Tyrenzo Morton has been indicted by a federal grand jury in Pittsburgh for escaping from federal custody while serving a prison sentence, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on March 5, names Morton, 27, of Pittsburgh, Pennsylvania, as the sole defendant.
According to the indictment, on Dec. 23, 2012, Morton escaped from federal custody at Renewal, Inc., where he was serving the remaining portion of a federal prison sentence.
The law provides for a maximum total sentence of up to five years in prison, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The United States Marshals Service and the Pittsburgh Bureau of Police investigated this case leading to the capture and indictment of Morton.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Rafael Antonio Murillo Pleads Guilty to Illegal Re-entryRead the Press Release
RAFAEL ANTONIO MURILLO, age 41, a citizen of El Salvador, pled guilty in federal court today before U. S. District Judge Ivan L. R. Lemelle to a one-count indictment charging him with illegal re-entry by a removed alien, announced U. S. Attorney Dana Boente.
According to court documents, MURILLO admitted to being an alien who had previously been removed from the United States, was found in the United States, in Jefferson Parish, Louisiana on December 19, 2012, without having obtained consent from the Secretary of the Department of Homeland Security to reapply for admission to the United States.
The indictment charging MURILLO with illegal re-entry also included a notice of sentencing enhancement based on his prior felony conviction. With the enhancement, the charge carries a maximum statutory penalty of ten (10) years imprisonment, a fine of $250,000, and three (3) years of supervised release following any term of imprisonment. Sentencing for the defendant is scheduled for May 29, 2013 at 2:00 P.M.The case was investigated by U. S. Immigration and Customs Enforcement (ICE) - Enforcement and Removal Operations with the assistance of the Jefferson Parish Sheriff’s Office. The case is being prosecuted by Special Assistant U. S. Attorney Robert Weir.
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Postal Worker Charged with Stealing MailRead the Press Release
PITTSBURGH, Pa. - A postal worker has been indicted by a federal grand jury in Pittsburgh on charges of theft of mail by a postal employee, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on March 5, named Christopher L. Demorest, Sr., 39, of Greensburg, Pa., as the sole defendant.
According to the indictment, on or about March 29, 2012, Demorest, a Postal Service employee, embezzled a greeting card, which had been entrusted to him and which had come into his possession intended to be conveyed by mail. The indictment also charges that on or about April 25, 2012, Demorest embezzled two additional greeting cards.
The law provides for a maximum total sentence of 10 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the United States.
The United States Postal Service, Office of Inspector General, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Postal Service Employee Charged with Embezzling Mail ParcelsRead the Press Release
PITTSBURGH, Pa. - Shaun G. Westfall of Baden, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of theft of mail by a postal employee, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on March 5, named Shaun G. Westfall, 32, as the sole defendant.
According to the indictment, on or about June 13, 2012, Westfall, a Postal Service employee, embezzled two parcels of mail, which had been entrusted to him and which had come into his possession intended to be conveyed by mail.
The law provides for a maximum total sentence of 10 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the United States.
The United States Postal Service, Office of Inspector General and the Veterans Administration conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Porcupine Man Pleads Guilty to AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that Angelo Perez, age 33, of Porcupine, South Dakota appeared before Chief U.S. District Judge Jeffrey L. Viken on February 28, 2013 and pled guilty to Assault Resulting in Serious Bodily Injury. The maximum penalty upon conviction is 10 years of imprisonment and a $250,000 fine.
The charge relates to Perez assaulting a female on September 14, 2012 near Porcupine. The investigation was conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. The case is being prosecuted by Assistant U.S. Attorney Wayne Venhuizen.
A presentence investigation was ordered and a sentencing date was set for June 26, 2013. The defendant was remanded to the custody of the U.S. Marshal pending acceptance of this plea and sentencing.
Pittsburgh Man Sentenced to Prison for Making and Passing Counterfeit BillsRead the Press Release
PITTSBURGH, Pa. - A resident of Allegheny County has been sentenced in federal court to one year and a day of incarceration on his conviction of making and passing counterfeit money, United States Attorney David J. Hickton announced today.
United States District Judge Mark Hornak imposed the sentence on Shawn V. Jones, 43, of Pittsburgh, Pa.
According to the information presented to the court, Jones made $1,000 in photocopied counterfeit federal reserve notes in $20 and $10 denominations from Dec. 9 through Dec. 12, 2011. He pled guilty to passing counterfeit money at a local pub on Dec. 13, 2011.
Assistant United States Attorney Paul E. Hull prosecuted this case on behalf of the government.
The United States Secret Service conducted the investigation that led to the prosecution of Jones.
Phoenixville Man Charged with Theft of Government FundsRead the Press Release
Lawrence Nicoletti, 60, of Phoenixville, Pennsylvania, was charged today by information with one count of theft of government funds, in connection with his alleged scheme to collect retirement benefits intended for his father-in-law, after his father-in-law’s death, announced United States Attorney Zane David Memeger. According to the Information, the defendant’s father-in-law was a United States Postal Service worker who received Social Security Administration Retirement and Survivor’s Insurance benefits, as well as Office of Personnel Management Civil Service Retirement System benefits. The information alleges that Nicoletti’s father-in-law died in December 2005 but the defendant took the retirement benefits intended for his father-in-law until the fraud was discovered in the summer of 2012. This resulted in a loss to the government of approximately $188,564.70.
If convicted, the defendant faces a maximum possible sentence of 10 years imprisonment; 3 years of supervised release; a $250,000 fine; restitution of $188,564.70; and a $100 special assessment.The case was investigated by the Social Security Administration, Office of Inspector General, and the Office of Personnel Management, Office of Inspector General. It is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
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, 215-861-8525Philadelphia Woman Charged with Theft of Government FundsRead the Press Release
Sophia Beltz, 54, of Philadelphia, PA was charged today by information with one count of theft of government funds, in connection with her alleged scheme to collect Social Security Administration Retirement Insurance Benefits intended for her father, after her father’s death, announced United States Attorney Zane David Memeger. According to the information, the defendant received the retirement benefits intended for her father, who died in February 1997, until her fraud was discovered in August 2012. The information alleges that her conduct resulted in a loss to the government of approximately $172,133.
If convicted, the defendant faces a maximum possible sentence of 10 years imprisonment; 3 years of supervised release; a $250,000 fine; restitution of $172,133; and a $100 special assessment.The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
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, 215-861-8525Philadelphia Resident Sentenced on Cocaine ChargeRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA — A 25 year old Philadelphia, Pennsylvania resident, who formerly lived in Morgantown, West Virginia, was sentenced on March 5, 2013, in United States District Court in Clarksburg by Judge Irene M. Keeley.
United States Attorney William J. Ihlenfeld, II, announced that: THOMAS WILLIAMS was sentenced to 27 months imprisonment to be followed by three years of supervised release. WILLIAMS entered a plea of guilty on November 5, 2012, to one count of “Possession with Intent to Distribute Cocaine Hydrochloride” on March 3, 2010, at the Travel Lodge in Harrison County. WILLIAMS was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The case was prosecuted by Assistant United States Attorney Zelda E. Wesley and investigated by the Greater Harrison County Drug Task Force, consisting of officers from the Bridgeport Police Department; Clarksburg Police Department; Drug Enforcement Administration; West Virginia State Police-Bureau of Criminal Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives; and, the United States Marshals Service.
Pasco Man Sentenced to More Than 4 Years in Prison for Tax Fraud and Identity TheftRead the Press Release
Fort Myers, FL - U.S. District Judge John Steele sentenced Keith Stewart today to 4 years and 6 months in federal prison for presenting false claims to the government and aggravated identity theft. The court also ordered Stewart to serve a five-year term of supervised release, following his prison sentence. Stewart pleaded guilty on July 11, 2012.
According to court documents, Stewart knowingly prepared and filed false income tax returns with the IRS for fraudulent tax refunds. At least one of the false filings resulted in a payment to him in the amount of $8,000, to which he was not entitled. Stewart also used various means of identification belonging to other people in order to obtain debit cards in their names. At the time of his arrest, he possessed the names and personal information of at least 100 individuals.
This case was investigated by the United States Secret Service, Lee County Sheriff's Office, and the Internal Revenue Service Criminal Investigation. It was prosecuted by Assistant United States Attorney Douglas Molloy.
Palm Beach County Resident Arrested for Production of Child PornographyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced yesterday that Gary Goldberg, 49, of Palm Beach County, was charged with production of child pornography in violation of Title 18, United States Code, Section 2251. A Pre-trial detention hearing is scheduled for Goldberg today at 10:00 a.m.
The complaint charges Goldberg with production of child pornography, in violation of Title 18, United States Code, Sections 2251. If convicted, Goldberg faces a mandatory minimum term of imprisonment of fifteen years and a maximum term of imprisonment of up to thirty years.
According to the complaint, Goldberg entered into a relationship with a 17 year old girl and her 15 year old friend. Goldberg allegedly performed oral sex on the 15 year old girl in the bathroom at the BP station at Glades Road while the 17 year old waited in the car outside. Goldberg paid the minors to allow him to take nude and sexually explicit photographs of them. Goldberg allegedly photographed the girls with a tablet.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Ferrer commended the investigative efforts of the FBI, Boca Raton Police Department, the FBI Safe Streets Task Force, and the South Florida Minor Vice Task Force. The case is being prosecuted by Assistant U.S. Attorney Lothrop Morris.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
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.
Palm Beach County Man Pleads Guilty in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula A. Reid, Special Agent in Charge, U.S. Secret Service (USSS), and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced that defendant Jeanson Pata, 31, of West Palm Beach, pled guilty before U.S. District Judge James I. Cohn to two counts of theft of government money or property in violation of Title 18, United States Code, Section 641, and one count of false statement to a federal agency in violation of Title 18, United States Code, Section 1001. He faces a possible maximum statutory sentence of 25 years in prison. Sentencing is scheduled before Judge Cohn for May 14, 2013, at 9:00 a.m.
According to documents filed in court, on or before May 27, 2010, the defendant, Jeanson Pata, gave his SunTrust Bank debit card and PIN to his cousin (and co-defendant) Fednol Pierre, so that Pierre could deposit stolen tax refund checks into Pata’s bank account. Pierre deposited two such checks into Pata’s checking account, totaling $14,078, on May 27, 2010, and June 10, 2010. Shortly after each deposit, Pierre, with help from Pata, withdrew most of those funds at ATMs, grocery stores, and the teller window. Pata also transferred a total of $1,200 of those funds into his own savings account.
Additionally, according to documents filed in court, on November 20, 2012, Pata falsely told a U.S. Secret Service Special Agent that he had not received payment for allowing Pierre to use his bank account to deposit checks.
Mr. Ferrer thanked USSS and IRS-CI for their work on the case. The case is being prosecuted by Assistant U.S. Attorney Benjamin C. Coats.
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.
Norfolk, Virginia - Man was sentenced to serve a 16 month term of imprisonment followed by two years of supervised release following his guilty plea to unlawful sale of a firearm to an unauthorized person.Read the Press Release
RICHARD S. HARTUNIAN, United States Attorney for the Northern District of New York, announced that yesterday TERRY DUNLAP., age 28, of Norfolk, Virginia, was sentenced in U.S. District Court in Utica to serve a 16 month term of imprisonment followed by two years of supervised release following his guilty plea to unlawful sale of a firearm to an unauthorized person. Dunlap pled guilty to selling an Iberia Arms .40 caliber semiautomatic pistol on the street in Watertown, New York to an unknown person in August 2007. The pistol was recovered by Syracuse Police during a vehicle stop on September 27, 2007. A trace of the pistol’s serial number led ATF Special Agents in Virginia to interview Dunlap, the pistol’s last known owner. Dunlap initially falsely claimed to Norfolk ATF Agents, that he was still in possession of the firearm. Dunlap subsequently admitted that he sold the firearm in August 2007 to an unknown person in Watertown. Still later, Dunalp admitted to selling a second pistol to an unknown person in Syracuse, New York in October 2007.
This case was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) Field Offices in Syracuse, New York and Norfolk, Virginia. Assistance was also provided by the Syracuse Police Department. The case was prosecuted by Assistant U.S. Attorney Richard R. Southwick.
Newburyport Man Indicted for Social Security FraudRead the Press Release
BOSTON – Charges of social security fraud against a Newburyport man were unsealed today in federal court.
John Flaherty, 60, was indicted yesterday with theft of government money. The indictment alleges that from 1999 to 2012, Mr. Flaherty received Social Security payments intended for his mother, Eileen Flaherty who had passed away. Flaherty received payments totaling $168,830.The maximum sentence under the statute is 10 years in prison and a $250,000 fine.
United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Office, made the announcement today. The case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
New Ulm Felon Indicted for Possessing Four FirearmsRead the Press Release
MINNEAPOLIS—Earlier this week in federal court in St. Paul, a 48-year-old felon from New Ulm was indicted for possessing four firearms. On March 4, 2013, Buck Otto White was charged with one count of being felon in possession of a firearm.
The indictment alleges that on February 14, 2013, White possessed a 10-gauge shotgun, a .22-caliber rifle, a 12-gauge shotgun, and a 7.62-caliber rifle. Because he is a felon, White, also known as Timothy Joseph Hoffman, is prohibited under federal law from possessing firearms or ammunition at any time. His prior convictions include burglary in the second degree (Hennepin County in 1984), attempted burglary in the first degree (Anoka County in 1991), burglary in the second degree (Kanabec County in 1995), assault in the fourth degree (Anoka County in 1994), and attempted violation in the controlled substance law in the first degree (Hennepin County in 2006). Because these convictions constituted crimes of violence or drug trafficking, White is subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in prison for anyone subsequently convicted in federal court for being a felon in possession of a firearm and/or ammunition.This case is the result of an investigation by the Nicollet County Sheriff’s Office, the New Ulm Police Department and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Richard Newberry.
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.
More Charged in Panama Unit CaseRead the Press Release
McALLEN, Texas – A federal grand jury has handed down a superseding indictment in the case involving the former task force dubbed the “Panama Unit,” United States Attorney Kenneth Magidson announced today.
The superceding indictment, returned just moments ago, charges several additional members of the former task force as well as three other individuals, for various drug and theft charges.
In January 2013, a federal grand jury charged Jonathan Christian Trevino, 28, Alexis Rigoberto Espinoza, 29, Fabian Rodriguez, 28, and Gerardo Mendoza-Duran, 30, with conspiring to possess with the intent to distribute more than five kilograms of cocaine.
Today, former Hidalgo County Sheriff’s Deputies Salvador Joel Arguello, 34, Claudio Alberto Mata, 34, and Eric Michael Alcantar, 29, were charged with conspiring to possess with the intent to distribute more than five kilograms of cocaine, more than 1000 kilograms of marijuana and more than 500 grams of methamphetamine. The trio was also charged in several substantive counts of possession with the intent to distribute more than multi-kilogram quantities of cocaine.
The superceding indictment also includes one count of theft of government property against Trevino, Rodriguez and Arguello.
Fernando Guerra Sr., 57, Fernando Guerra Jr., 24, and Alvaro Gilberto DeHoyos, 25, were also charged in the indictment today with conspiracy to possess with intent to distribute, and possession with intent to distribute more than five kilograms of cocaine.
All the defendants face a minimum of 10 years and a maximum of life in prison, along with a potential fine up to $10 million.
The case is being investigated by the FBI, Immigration and Customs Enforcement – Office of Professional Responsibility, Drug Enforcement Administration, Homeland Security Investigations, the Texas Rangers and Department of Justice – Office of the Inspector General. Assistant United States Attorneys Anibal Alanis and James Sturgis are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
Mexican National Sentenced in Child Solicitation CaseRead the Press Release
LAREDO, Texas– Juan Antonio Castillo-Mendoza, 46, a resident of Nuevo Laredo, Tamaulipas, Mexico, has been sentenced to 48 months for traveling into the United States with intent to engage in illicit sexual conduct, United States Attorney Kenneth Magidson announced today along with Vincent Iglio, acting special agent in charge of Homeland Security Investigations (HSI). Castillo-Mendoza pleaded guilty to the charge on Oct. 25, 2012.
“Protecting America's children from sexual predators is one of the most important public safety roles we have at HSI,” said Iglio. “Today’s sentencing demonstrates that HSI and our law enforcement partners will use every tool at our disposal to stop these predators in their tracks, and protect their innocent victims.”
Between July and August 2012, Castillo-Mendoza initiated contact and engaged in numerous online chats with an undercover investigator who was posing as a 14-year-old girl. During their first chat, Castillo-Mendoza was informed several times that the girl he had initiated contact with was 14 years old. The online conversations soon turned personal and Castillo-Mendoza told the undercover investigator he wanted her to become his girlfriend, asked her to keep their relationship a secret and tried to entice her to travel to Nuevo Laredo so that they could meet. He also steered the online chats towards sex and repeatedly asked the undercover investigator about sex.
After a month of online chatting, Castillo-Mendoza made plans to visit the girl and have sex with her while her mother was away at work. Castillo-Mendoza arrived at the Laredo apartment given to him by the undercover investigator and he was subsequently arrested.
The case was investigated by HSI and the Webb County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Sonah Lee.
Manager of Check-Cashing Store Pleads Guilty to Participating in Tax Refund ScamRead the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerCINCINNATI – Marnay Love, 33, of Cincinnati pleaded guilty in U.S. District Court to one count of conspiracy for her role in a scheme to file fraudulent income tax returns in order to claim tax refunds. Love admitted to assisting in the cashing of at least 43 refund checks worth $84,090.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Denise Rocawich, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office (IRS), announced the plea entered today before Senior U.S. District Judge Sandra S. Beckwith.
According to court documents, Love worked as manager at ACE Cash Express. Love admitted that she sometimes cashed the checks under account names that did not match the individual on the check. Once cashed, Love took a portion of the refund as a fee and gave the remaining money to co-conspirators.
Conspiracy to defraud the IRS is punishable by up to ten years in prison, a fine of up to $250,000 or twice the gain to the defendant or loss to the victim, and a mandatory term of supervised release of up to three years.
Love and four others were indicted in January 2013. Charges against the other three are pending.
“The plea agreement attributes the loss to the IRS at $84,090 and the loss to her employer at $17,850,” U.S. Attorney Stewart said. Judge Beckwith will set a date for sentencing.
Assistant United States Attorney Jessica Knight is representing the United States in this case.
Lee County Man Indicted for Multiple Bank RobberiesRead the Press Release
Fort Myers, Florida- United States Attorney Robert E. O'Neill announces the return of an indictment charging Daniel Glen Ball (36, Lee County) with three counts of bank robbery. If convicted, Ball faces a maximum penalty of 20 years in federal prison for each count. The indictment also notifies Ball that the United States intends to forfeit the proceeds of the offenses.
According to the indictment, Ball robbed three banks between February 25, 2013, and March 1, 2013. Ball allegedly robbed a Fifth Third Bank on February 25, 2013, an Edison National Bank on February 28, 2013, and another Fifth Third Bank on March 1, 2013.
An indictment 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 the Federal Bureau of Investigation, Fort Myers Police Department, Lee County Sheriff's Office, and the United States Marshals Service Regional Fugitive Task Force. It will be prosecuted by Assistant United States Attorney David G. Lazarus.
Indictments Returned in Hammond Federal CourtRead 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 that the following Indictments were returned on March 6, 2013:
Christopher M. Bour, 39, and Natisha Hillard, 24, both of Gary, Indiana, were charged in a five count Indictment alleging buying/selling, production of and possession of child pornography.Bour is charged with one count of purchase of a child for production of child pornography, one count of production of child pornography and one count of possession of child pornography featuring a minor under the age of 12.Hillard is charged with one count of sale of a child by a parent for production of child pornography and one count of permitting a child by a parent to participate in the production of child pornography. These charges were filed as the result of an investigation by the Federal Bureau of Investigation, the Indiana State Police, the Gary Police Department and the Michigan City Police Department.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jill Koster.
Stacy Davis, 44, of Gary, Indiana, was charged in a superseding Indictment adding two additional bank robbery counts to the original indictment; the bank robbery of TCF Bank in Munster, Indiana on October 2, 2012 and the robbery of Chase Bank in Merrillville, Indiana on October 3, 2009.These charges were filed as the result of an investigation by the Federal Bureau of Investigation GRIT Task Force.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Indictment Filed Charging 28 People with Skimming More Than $1.7 Million from Trucking CompaniesRead the Press Release
A 97-count indictment was filed charging 28 people with violations including conspiracy, wire fraud and money laundering for their roles in a scheme that skimmed more than $1.7 million from trucking companies, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and William Hayes, acting special agent in charge U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Detroit.
“Criminal enterprises are constantly coming up with new ways to rip off companies, consumers and customers,” Dettelbach said. “This group tried to turn truck stops into their own personal ATMs. We will continue to work with our partners in law enforcement to stamp out these schemes.”
“This organization is alleged to have significantly defrauded American trucking companies engaged in legitimate commerce,” Hayers said. “This type of illegal activity can result in higher costs passed on to the consumer.”
Those indicted are: Dilshod Sidikov, aka “Dema”, 24, of Brooklyn, NY; Michael McPherson, 24, of Bronx, NY; Jamarl Gibbs, 29, of Albany, NY; Vernon Parker, 38, of Brooklyn, NY; Ahygia McDowell, 29, of Bronx, NY; Rashaad Forest, 32, of Bronx, NY; William Kelly, 30, of Bronx, NY; Jonas Belizaire, 32, of Bronx, NY; Liza Ortiz, 39, New York, NY; Victoria Alford, aka Victoria Kayeoni Alford, 43, Auburn, NY; Juan Pablo Estevez, 23, Stanton Island, NY; Gilbert Ortega, 38, of Brooklyn, NY; Sharone Lewis, 32, of Brooklyn, NY; Gerald Gomez, 24, of New York, NY; William Whitehead, 28, of Bronx, NY; Mario Flores, 56, of Bronx, NY; Ilya Trakhtenberg, 36, of Brooklyn, NY; Ashle Gardner, 25, of Brooklyn, NY; Paul Garrett, 46, of Bronx, NY; Chad Cook, 35, of Syracuse, NY; Ernest Gonzalez, 45, of Bronx, NY; Anthony Latief King, 42, of Bowie, MD; Johnathan Harris, 23, of Toledo, Ohio; Reginald Nottage, 48, of Brookyln, NY; Paul Grimes, 25, of Bronx, NY; Daniel Nieves, 25, of Bronx, NY; Igor Bekkerman, 41, of Denver, and Erna Kobrinsky, 42, of Hallandale Beach, FL.
Count 1 of the indictment charges the following defendants with conspiracy to commit wire fraud: Dilshod Sidikov, aka “Dema”; Michael McPherson; Jamarl Gibbs; Vernon Parker; Ahygia McDowell; Rashaad Forest; William Kelly; Jonas Belizaire; Liza Ortiz; Victoria Alford, aka Victoria Kayeoni Alford; Juan Pablo Estevez; Gilbert Ortega; Sharone Lewis; Gerald Gomez; William Whitehead; Mario Flores; Ilya Trakhtenberg; Ashle Gardner; Paul Garrett; Chad Cook; Ernest Gonzalez; Anthony Latief King; Johnathan Harris, Reginald Nottage, Paul Grimes, and Daniel Nieves.
Counts 2 through 96 of the indictment charges the following defendants with wire fraud: Vernon Parker; Ahygia McDowell; Rashaad Forest; Jonas Belizaire; Liza Ortiz; Victoria Alford, aka Victoria Kayeoni Alford; Juan Pablo Estevez; Gilbert Ortega; Sharone Lewis; Gerald Gomez; William Whitehead; Mario Flores; Ilya Trakhtenberg; Chad Cook; Ernest Gonzalez; and Johnathan Harris.
The indictment charges that the defendants fraudulently obtained account numbers and codes used by independent trucking companies to wire money to the companies’ drivers from February 2011 through November 2012. They accomplished the objectives of the conspiracy and wire fraud as set forth below: Electronic fund processing companies (EFP) such as Fleet One, Comdata, and TCH are used by trucking companies to electronically transfer funds to truck drivers at truck stops and other locations throughout the country. Drivers typically obtain the money by providing information to a customer service representative at a participating truck stop. That information is then relayed via wire to an EFP processing center. Once the EFP has authorized the request for money, the truck stop will issue a check to the driver who then cashes it.
From the above period of time, known and unknown individuals obtained account numbers and codes used by trucking companies to issue checks through EFPs. These account numbers and codes were obtained without the knowledge or consent of the trucking companies. The known and unknown individuals then provided the stolen account numbers and codes via telephone calls or text messages to the defendants, according to the indictment.
The defendants traveled to truck stops in the Northern District of Ohio and elsewhere. Once at the truck stops, they posed as truck drivers, approached customer service counters, presented the stolen account numbers and codes, and requested checks from EFPs such as Comdata, Fleet One and TCH, according to the indictment.
Customer service representatives at the truck stops then processed the requests by sending the account numbers and codes via wire to EFP processing centers located outside the Northern District of Ohio. The EFPs then authorized the requests and authorized the truck stop customer service representatives, via wire, to print checks for the defendants. They then endorsed the checks and cashed them at the truck stops, according to the indictment.
In total, the defendants fraudulently obtained a gross amount of more than $1.7 million. Most of the transactions took place at truck stops in Ohio, according to the indictment.
Count 97 of the indictment charges the following defendants with money laundering: Dilshod Sidikov, aka “Dema”; Ilya Trakhtenberg; Ahygia McDowell; Daniel Neives; Igor Bekkerman; and Erna Kobrinsky.
From about February 2011, and continuing to on or about November 2012, the defendants conspired to launder money by transferring the proceeds of this scheme from bank accounts New York to Russia and Uzbekistan and then back again to bank accounts in New York, according to the indictment.If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including each of the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Department of Homeland Security Investigations (HSI). The matter was presented to the grand jury and is being prosecuted by Assistant United States Attorney David M. Toepfer.
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.
Hanford Contractor Agrees to Pay $18.5 Million Dollars to Resolve Civil and Criminal Allegations and to Cooperate with the United States in On-Going InvestigationRead the Press Release
RICHLAND - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, in conjunction with the United States Department of Justice's Civil Division, announced today that Colorado-based CH2M Hill Hanford Group Inc. (CHG) and its parent company, CH2M Hill Companies Ltd. (CH2M Hill), have agreed that CHG committed federal civil and criminal violations by defrauding the public through years of widespread time card fraud. In order to resolve CHG's civil and criminal liability, CH2M Hill has agreed: to pay a total of $18,500,000; to commit an additional $500,000 towards accountability systems; to consent to a corporate monitor; and to continue actively cooperating with an ongoing fraud investigation.
Specifically, the global resolution entered between CH2M Hill and the United States provides that CH2M Hill will pay $16,550,000 to resolve its civil liability under the False Claims Act. In addition, CH2M Hill entered into a Non-Prosecution Agreement with the United States Attorney's Office for the Eastern District of Washington to resolve its criminal liability. Under the terms of that agreement, CH2M Hill will refund an additional $1.95 million in wrongfully obtained profits, dedicate $500,000 to foster increased accountability at the Hanford Site, and pay for independent monitoring to ensure that CH2M Hill takes adequate corrective actions. To date, eight individuals have pleaded guilty to engaging in the same time card fraud scheme and conspiracy, in which conspiracy CH2M Hill has now admitted CHG itself was a co-conspirator.
Between 1999 and 2008, CH2M Hill had a contract with the United States Department of Energy to manage and clean 177 large underground storage tanks containing mixed radioactive and hazardous waste at the Department of Energy's Hanford Nuclear Site in southeastern Washington (the Tank Farms Contract). The Hanford Site was used for the production of nuclear weapons during World War II and the Cold War.
The global resolution entered between the United States and CH2M Hill is supported by an agreed statement of facts. According to those facts, CHG hourly employees involved in the cleanup routinely overstated the number of hours they worked. It is agreed that certain members of CHG management condoned the practice and, in turn, submitted inflated claims to the Department of Energy that included the fraudulently claimed hours. Specifically, CH2M Hill and the United States agree that CHG's hourly workers "consistently refuse[d] to perform any overtime work unless that overtime was offered, or 'called out,' in 8 hour blocks." As stated in the agreed statement of facts, "[t]he inability of CHG's upper management to secure the necessary overtime volunteers for various jobs threatened CHG's ability to complete various projects linked to the Tank Farms Contract performance incentives. This in turn threatened CHG's ability to earn certain fees, and therefore profits under the Tank Farms Contract." The agreed statement of facts also acknowledge that the inability to obtain performance-based incentives would have directly impacted the personal corporate bonuses of certain members of CHG's upper management. Consequently, "certain members of CHG's upper management, certain direct supervisors of the hourly workers, and certain other supervisory personnel, accepted the practice of hourly workers only working until the particular overtime job was completed, leaving Hanford, and falsely claiming a full 8 hours even when the job took less than 8 hours," according to the agreed statement of facts.
The widespread time card fraud at CHG was not limited to overtime abuse and had occurred for many years, in some instances even pre-dating the Tank Farms Contact, as stated in the agreed statement of facts. Furthermore, the agreed facts acknowledge that, "[c]ertain members of CHG's upper management, certain direct supervisors of hourly employees, and other certain supervisory personnel, did not discipline, formally or informally, CHG hourly workers for routinely engaging in known time card fraud. In fact, certain of CHG's direct supervisors of hourly workers engaged in patterns designed to avoid the detection of the routine time card fraud by law enforcement officials and internal auditors." In this manner, CHG "knowingly, willfully, and with intent to defraud, facilitated CHG's hourly workers routinely getting paid for hours they did not work and combined, conspired, and agreed with CHG hourly workers to accomplish the same, all at the sole expense of the citizens of the United States."
United States Attorney Michael C. Ormsby stated: "This sort of systemic fraud is an appalling abuse of the trust we place in our contractors at Hanford and it simply will not be tolerated." United States Attorney Ormsby went on to say: "I hasten to add that CH2M Hill has stepped up, admitted the criminal conduct of its subsidiary, and has agreed to pay back a good faith estimate of what was taken, including criminal proceeds from the conspiracy. CH2M Hill has also agreed to take substantial remedial steps going forward including having its remaining subsidiary at the Hanford Site, CH2M Hill Plateau Remediation Company, consent to a corporate monitor for 3 years, and to commit an additional $500,000 towards making sure that similar fraudulent conduct does not happen again." United States Attorney Ormsby also noted that: "Under this global resolution, CH2M Hill will continue its commendable cooperation demonstrated in this matter."
Stuart F. Delery, Principal Deputy Assistant Attorney General for the Civil Division of the Department of Justice, said: "Contractors owe a duty to the taxpayers to accurately bill the United States for work performed. This settlement demonstrates that the Department of Justice, working together with its law enforcement partners, will hold contractors accountable for false billing and restore wrongfully taken funds to the Treasury."
"I am pleased with today's announcement. I would like to express my thanks to the entire investigative team – Inspector General Special Agents, the United States Attorney's Office, the Department of Justice Civil Frauds Division and the FBI -- for their efforts on this investigation," said Gregory H. Friedman, the Department of Energy Inspector General. "It is essential that Department of Energy contractors be held accountable for effective stewardship of U.S. taxpayer dollars."
The civil fraud allegations under the False Claims Act resolved by today's settlement were initially alleged in a whistleblower lawsuit filed by Carl Schroeder, a former employee of CH2M Hill and one of those who pleaded guilty to the scheme. Under the False Claims Act, private citizens can sue on behalf of the United States and share in the recovery. The Act, however, bars whistleblowers from recovering if they were convicted based on their role in the scheme. The False Claims Act suit was filed in the United States District Court for the Eastern District of Washington, and is captioned United States ex rel. Schroeder v. CH2M Hill, No. 09- CV-5038 (E.D. Wash.).
This matter was handled by Tyler Tornabene, an Assistant United States Attorney for the Eastern District of Washington, and Daniel Fruchter, a Trial Attorney with the Civil Fraud Section of the United States Department of Justice's Civil Division, with investigative assistance provided by the Department of Energy Office of Inspector General and the Federal Bureau of Investigation.
Fort Totten Man Pleads Guilty to Involuntary ManslaughterRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on March 6, 2013, Louis John Dunn of Fort Totten, N.D., pleaded guilty before U.S. District Court Judge Ralph R. Erickson to a charge of involuntary manslaughter.
On Oct. 12, 2012, Dunn, 33, while driving under the influence of alcohol, drove into the lane of on-coming traffic, striking the vehicle driven by Andrew Greywater who subsequently died from the injuries he received in the crash.
The incident occurred on the Spirit Lake Indian Reservation.
The charge of involuntary manslaughter carries a statutory maximum penalty of eight years’ imprisonment. The case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Sentencing for Dunn has been scheduled for May 29, 2012, in U.S. District Court in Fargo, N.D., at 10:45 a.m.
Assistant U.S. Attorney Janice M. Morley is prosecuting the case.
Fort Myers Man Indicted for Three Bank RobberiesRead the Press Release
Fort Myers, Florida- United States Attorney Robert E. O'Neill announces the return of an indictment charging Jose Miguel Figueroa (41, Fort Myers) with three separate bank robberies in Lee County, Florida. If convicted, he faces a maximum penalty of 20 years in federal prison for each bank robbery. The indictment also notifies Figueroa that the United States intends to forfeit the proceeds of each of the three offenses.
According to the indictment, on three different occasions between January 17, 2013, and March 1, 2013, Figueroa used intimidation to take money from Wells Fargo Bank .
An indictment 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 the Federal Bureau of Investigation, Fort Myers Police Department, and the Lee County Sheriff's Office. It will be prosecuted by Assistant United States Attorney David G. Lazarus.
Former Wilton Manors Resident Indicted for Defrauding the State of Florida Unemployment Compensation ProgramRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Richard Walker, Special Agent in Charge, U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and Jesse Panuccio, Executive Director, Florida Department of Economic Opportunity, announced today the arrest and unsealing of a twelve (12) count indictment charging defendant Denny Ray Hughes, 40, formerly of Wilton Manors, FL, with nine (9) counts of wire fraud, in violation of Title 18, United States Code, Section 1343, and three (3) counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
If convicted on the wire fraud counts, the defendant faces a maximum statutory sentence of up to twenty years in prison, three years of supervised release, and a $250,000 fine. If convicted on the aggravated identity theft counts, the defendant faces a mandatory two years imprisonment consecutive to any other sentence imposed.
According to the indictment, between January 2011 and April 2012, defendant Hughes obtained the personal identifying information of approximately 21 individuals, including their names, dates of birth, and social security numbers, and in order to obtain and build wage credits for the purported employees filed or caused to be filed fraudulent quarterly UCT-6 forms with the Florida Department of Revenue classifying them as employees of Mortgage Relief America, LLC (MRA). Alternatively, defendant Hughes submitted falsified W-2’s to the Florida Department of Economic Opportunity to create the appearance that these individuals had previously worked for MRA. The defendant thereafter classified these individuals as laid off employees and fraudulently filed applications with the Florida Department of Economic Opportunity seeking unemployment compensation benefits on their behalf utilizing their personal identifying information. Once these fraudulent unemployment compensation applications had been submitted to the Florida Department of Economic Opportunity, the defendant made materially false, misleading, and fraudulent claims to the Florida Department of Economic Opportunity Unemployment Compensation Program over the internet and/or over the telephone on either a weekly or bi-weekly basis, and thereby caused unemployment compensation funds from the Florida Department of Financial Services to be deposited directly into the defendant’s bank account via electronic funds transfers. In total, the defendant allegedly defrauded the State of Florida out of approximately $206,000.00.
Mr. Ferrer commended the investigative efforts of the U.S. Department of Labor, Office of the Inspector General and the Florida Department of Economic Opportunity. This case is being prosecuted by Assistant U.S. Attorney Marc Anton.
An indictment is only an accusation and a defendant is presumed innocent unless proven guilty.
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 Marine Admits Running Elaborate Fraud Scheme to Get Financial Help to Play on PGA TourRead the Press Release
Defendant Concocted Convincing Story That He Was a Wounded Combat Veteran
DALLAS — Michael Duye Campbell, 30, of Houston, appeared in federal court in Dallas today and pleaded guilty, before U.S. District Judge Jorge A. Solis, to an Information charging one count of mail fraud, stemming from a scheme he ran from 2010 to 2012 to obtain financial assistance so that he could play professional golf. Campbell, a Houston resident, faces a statutory maximum penalty of 20 years in federal prison, a $250,000 fine and restitution. He will remain on bond, pending sentencing, which has been set for June 19, 2013, before Judge Solis. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Campbell served in the U.S. Marine Corps from 2000 to 2004; he never deployed overseas and was never injured, severely or otherwise, in combat. Nonetheless, he began representing himself as a Marine combat veteran who had suffered a traumatic brain injury (TBI) while deployed to Iraq in support of Operation Iraqi Freedom.
As part of his elaborate scheme, Campbell falsely told others that while on patrol in Fallujah, Iraq, his unit was attacked when an improvised explosive device (IED), or bomb, detonated. He told others that members of his unit died in the explosion and that he awoke from his serious injuries months later at Walter Reed Army Hospital. He claimed that he couldn’t speak, and that when he did regain his speech, he stuttered. He also claimed that he suffered short-term memory loss from his TBI.
Campbell told numerous individuals that his doctor suggested that he take up golf to help with his rehabilitation for his combat injuries. Campbell also created a website and obtained a promotional video recording to further his scheme — all to obtain financial help to play in the PGA.
Campbell was convincing in his story. He met famous people who supported charity golf tournaments for wounded warriors and convinced them to write stories on his behalf and provide him access to expensive golf schools and golf courses. All of this provided Campbell with opportunities to continue his scheme, defraud others and afford him opportunities to search out endorsement contracts for golf apparel and equipment.
In fact, it was during this process that Campbell learned of the Troops First Foundation and Operation Proper Exit. These charities provide opportunities for severely-injured service members to return to the location where they sustained their injury and, instead of being medically evacuated, provide them the opportunity to walk to the aircraft and climb the ramp. Campbell participated in Operation Proper Exit VIII, co-sponsored by the USO, in December 2010. He was flown from DFW to Dubai and then provided military transportation for the remainder of the trip. Even though Campbell was neither a combat veteran nor a wounded warrior, he made the trip, which cost thousands of dollars.
Campbell deceived other charities including Operation Homefront and Counter Valor by making continued material false statements in furtherance of his scheme to defraud. He obtained many things of value from them including automobile payments, automobile insurance payments, utilities, room and board, transportation, living expenses and golf tournament entry fees. Likewise, Campbell deceived Vola LLC (an athletic apparel and footwear company located in Richardson, Texas) and Golf Technology Xtreme, Inc. (GTX) (a manufacturer of golf clubs), by obtaining, and attempting to obtain golf clothing, equipment, money and other things of value from them.
Campbell admits that the victims of his fraud suffered at least $40,000 in actual losses.
The case is being investigated by the FBI and prosecuted by Criminal Chief Assistant U.S. Attorney Chad Meacham.
Former Las Vegas Realtor, His Wife, and Escrow Officers Charged in $83 Million Mortgage Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A man who owned and operated two now-defunct mortgage industry businesses in the Las Vegas area, his wife, and an escrow officer, were indicted by a federal grand jury today on conspiracy and bank fraud charges in relation to an $83 million mortgage fraud scheme, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
“We continue to work with our law enforcement partners on the investigation and prosecution of mortgage fraud in Nevada,” said U.S. Attorney Bogden. “Since the inception of our mortgage fraud program in the spring of 2008 and through the end of 2012, about 213 persons have been charged with federal mortgage fraud crimes in Nevada. Most of those individuals were convicted and are in prison.”
Derrick Phelps, 44, former owner of Investors Realty and Enterprise Mortgage Services in Henderson, and his wife, Cynthia Phelps, 34, both of Katy, Texas, and Linda Mack, 49, of North Las Vegas, are charged with one count of conspiracy to commit bank fraud, mail fraud and wire fraud and seven counts of bank fraud. They are scheduled to make an initial appearance before U.S. Magistrate Judge Foley on Friday, March 22, 2013, at 3:00 p.m. to answer the charges. If convicted, they face up to 30 years in prison for each count and fines of up to $1,000,000 per count.
According to the indictment, from about January 2003 to November 2006, the defendants devised a scheme to defraud federally insured financial institutions through the use of straw buyers, inflated housing values and false mortgage applications. The defendants solicited straw buyers with good credit ratings to purchase homes in the Las Vegas area. The defendants made offers to purchase the homes above the sellers’ asking prices. In some instances, the defendants caused straw buyers to purchase multiple houses at or about the same time, so that the purchases would not show up on their credit report and the lenders would not be aware of the other purchases. The defendants then caused false information to be placed in the straw buyer’s mortgage loan application and other documentation concerning the buyer’s income and intent to occupy the home. Once the loans were approved, the defendants caused the sellers to agree that part of the excess funds be redirected to the buyers under the pretense of making upgrades and repairs to the properties. The defendants intentionally concealed from the financial institutions the fact that they were receiving part of the loan disbursements for their own use and benefit. The defendants defaulted on the mortgage loans which caused the properties to go into foreclosure. Using this scheme, the defendants purchased approximately 233 properties and caused losses to the financial institutions greater than $30 million.
The case is being investigated by the United States Postal Inspection Service, and is being prosecuted by Assistant U.S. Attorneys Sarah E. Griswold and Brian Pugh.
This case was handled in connection with the President's Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
An indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Former Bernalillo County Corrections Officer Convicted on Obstruction of Justice ChargesRead the Press Release
ALBUQUERQUE – A federal jury late this afternoon convicted Kevin Casaus, 25, a former corrections officer at the Bernalillo County Metropolitan Detention Center (MDC) in Albuquerque, N.M., on obstruction of justice and falsification of records charges, announced the Justice Department.
Casaus and fellow former MDC corrections officers, Demetrio Juan Gonzales, 40, and Matthew Pendley, 26, were indicted in June 2012, and charged with various crimes related to the assault of an inmate housed at MDC on Dec. 21, 2011, and subsequent attempts to cover up and impede the investigation of the assault. In Oct. 2012, Gonzales pleaded guilty to violating the civil rights of an individual in his custody when he struck and choked the victim in the shower room/dress out area of MDC. Pendley pleaded guilty in Feb. 2012 to obstructing justice by making false statements to law enforcement during their investigation of the assault on an inmate.
Trial of Casaus on obstruction of justice, falsification of records and assault charges began on March 4, 2013. According to the evidence at trial, during the early morning hours of Dec. 21, 2011, Gonzales was assigned to the Receiving-Discharge-Transfer (RDT) Unit at MDC where individuals are brought to be booked soon after they are arrested. His job was to photograph and fingerprint those who are brought to RDT for booking. The victim, who had been arrested for Driving While Intoxicated, was verbally uncooperative during the booking process, but was not a physical threat to anyone. Gonzales testified that he became angry at the victim and walked him to the shower room where he knew there were no surveillance cameras. Several other corrections officers, including Casaus, followed Gonzales to the shower room. There, Gonzales physically assaulted the victim, striking him multiple times, and choking him. Gonzales testified that he beat the victim “in a blind rage” and then had to wash the victim’s blood off his hands. He further testified that the victim did not do anything to justify the beating.
According to the testimony, Casaus and two other corrections officers were present in the shower room during the beating. Additionally, a former inmate who was in the hallway outside the shower room at the time of the beating, overheard groans and sounds consistent with the assault coming from the shower room. He was then tasked with cleaning the blood that was on the floors and walls of the shower room. The victim testified that, after Gonzales left the shower room, Casaus assaulted him by shoving him and striking him. Casaus falsely stated during a recorded interview with a Bernalillo County Sheriff’s Office investigator that the victim was not assaulted in the shower room, the victim was not bleeding, and that they only brought the victim to the shower room to ask him to change out of his clothes. Casaus falsified his report when he wrote that he saw blood on the victim's clothes, but did not know where the blood came from.
The jury deliberated approximately four hours before returning a verdict of guilty on the obstruction of justice and falsification of records charges, and not guilty on the assault charge.
“Today's verdict affirms that law enforcement officers are not above the very laws they are sworn to uphold,” said Assistant Attorney General Thomas E. Perez. “As in this case, the Civil Rights Division will work closely with our United States Attorneys to vigorously prosecute police misconduct.”
Casaus faces a maximum penalty of 20 years in prison when he is sentenced. His sentencing hearing has yet to be scheduled. Gonzales was sentenced in Jan. 2013 to 33 months in prison. Pendley’s sentencing hearing also has not been scheduled.
“When those who are sworn to uphold the law and protect others instead abuse their power and position, they undermine the public’s confidence in the justice system and our government institutions,” said Kenneth J. Gonzales, U.S. Attorney for the District of New Mexico. “The U.S. Attorney’s Office and the Department of Justice are committed to promoting trust in our system of justice by vigorously prosecuting those who obstruct justice.”
“Corrections officers have a special duty to safeguard the civil rights of the inmates they oversee. That is why the Albuquerque FBI aggressively investigated this case that also resulted in the guilty pleas of two other former MDC officers,” said Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI. “I would like to congratulate the FBI Special Agents for their hard work, and the U.S. Attorney's Office and the Justice Department’s Civil Rights Division for three successful and important civil rights prosecutions. I also want to thank the Bernalillo County Sheriff's Office and the Metropolitan Detention Center's executive management and internal affairs staff.”
This case was investigated by the Albuquerque Division of the FBI and is being prosecuted by Assistant U.S. Attorney Mark T. Baker for the District of New Mexico and Trial Attorney Fara Gold of the Civil Rights Division of the U.S. Department of Justice.
Five Plead Guilty to Federal Firearms ChargesRead the Press Release
LAREDO, Texas – Five people have entered guilty pleas for making false statements in connection with firearms purchases from local gun stores, United States Attorney Kenneth Magidson announced today.
According to testimony presented at today’s hearing, Gloria Esther Almanza, 39, Calixto Javier Cardenas, 23, Carlos Picazio, 30, and Alejandro Rivera-Ruiz, 48, all residents of Laredo, each purchased semi-automatic assault rifles for other persons who would smuggle them into Mexico. They all pleaded guilty to making false statements on Bureau of Alcohol, Tobacco, Firearms and Explosives Forms 4473, commonly known as straw purchasing. Mexican national Oswaldo Rafael Borrego-Ramos, aka “Baldo,” 31, of Nuevo Laredo, Tamaulipas, Mexico, admitted recruiting the defendants directly or through others. He pleaded guilty to conspiracy to make false statements in acquiring firearms.
The indictment alleges that the conspiracy spanned a little over one year, beginning in October 2010. Over the course of 15 months the defendants acquired at least 23 pistols and semi-automatic assault rifles. The federal investigation involved historical purchases made by these defendants and others from various stores in Laredo.
U.S. District Judge Marina Garcia-Marmolejo, who accepted the guilty pleas today, has set sentencing for June 5, 2013, at which time they face a maximum prison sentence of five years and a possible $250,000 fine. Borrego-Ramos and Rivera-Ruiz are presently serving federal prison sentences of 78 months and 52 months, respectively, for smuggling ammunition and firearm magazines into Mexico. They and Picazio will remain in federal custody pending sentencing in this case, while Almanza and Cardenas were permitted to remain on bond.
Picazio was also named in another indictment along with Robert Jacaman Sr. and Veronica Jacaman in an ammunition smuggling charge involving 9,500 rounds. Picazio is innocent of that charge until proven guilty as are the Jacamans.
The investigation was conducted by the ATF with the cooperation of United States Border Patrol and Homeland Security Investigations. Assistant United States Attorney Homero Ramirez is prosecuting the case.
Felon Indicted for Possession of 16 FirearmsRead the Press Release
Indictment Alleges That Defendant Also Attempted To Obstruct Justice
Russell Brothers, Jr., 75, of Burns, Tennessee, was indicted by a federal grand jury in Nashville today, in a five-count indictment charging him with being a felon in unlawful possession of 16 firearms and two separate attempts to obstruct justice, announced Jerry E. Martin, U.S. Attorney for the Middle District of Tennessee.
According to the indictment, in April 2012, Brothers illegally possessed a number of firearms, including rifles, shotguns, and handguns. Because Brothers has prior felony convictions for drug trafficking and money laundering, this possession was unlawful. In addition, the indictment alleges that Brothers obstructed justice in two ways: (1) Brothers provided another individual with a false version of events related to his illegal conduct in order to influence the testimony of that person in the pending federal criminal investigation and (2) Brothers attempted to conceal one of the guns with the intent to impair its availability for use in the federal criminal investigation.
If convicted for the unlawful possession of firearms, Brothers faces a maximum sentence of 10 years in prison and a $250,000 fine for each count. If convicted of obstructing justice, Brothers faces a maximum sentence of 20 years in prison and a $250,000 fine for each count.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Metropolitan Nashville Police Department, the Drug Enforcement Administration, and the Federal Aviation Administration. Assistant United States Attorney Alex Little is representing the government.An indictment is merely an accusation and is not evidence of guilt. Defendants are presumed innocent unless and until proven guilty in a court of law.
Federal Jury Finds Former Ledyard Resident Guilty of Child Pornography OffensesRead the Press Release
March 6, 2013David B. Fein, United States Attorney for the District of Connecticut, today announced that a federal jury in Bridgeport has found MATTHEW WALLACE, 31, of Westerly, R.I., formerly of Ledyard, guilty of one count of receiving child pornography and one count of possessing child pornography. The trial before Senior U.S. District Judge Warren W. Eginton began on March 4 and the jury returned its verdict this afternoon after deliberating for approximately two hours.
According to the evidence disclosed during the trial, on January 19, 2010, a Milford Police detective assigned to the Connecticut Child Exploitation Task Force logged into a peer-to-peer Internet file sharing network and downloaded several images of child pornography from an Internet Protocol (“IP”) address assigned to WALLACE at his Ledyard residence. On May 28, 2010, law enforcement agents conducted a court-authorized search of WALLACE’s residence and seized computers and hard drives. Forensic examination of the seized items revealed more than 500 images and videos of children engaged in sexually explicit conduct.
Judge Eginton has scheduled sentencing for May 29, 2013, at which time WALLACE faced a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.
WALLACE has been released on a $100,000 bond since his arrest on December 16, 2010. Following today’s verdict, Judge Eginton ordered WALLACE to be confined to his home. A hearing has been scheduled for March 13, 2013, to determine if WALLACE will be allowed to remain released on bond, or if he will be detained until his sentencing.
This matter has been investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies, including the Milford Police Department. The Connecticut State Police and the Ledyard Police Department have provided valuable assistance to the investigation. The case is being prosecuted by Assistant United States Attorneys Ray Miller and Neeraj Patel.
The Connecticut Child Exploitation Task Force, which is housed at the main FBI office in New Haven, investigates crimes against children occurring over the Internet, and provides computer forensic review services for participating agencies. For more information about the Task Force, or to report child exploitation crimes, please contact the FBI at 203-777-6311.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Federal Grand Jury Returns Five IndictmentsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA — Eight individuals were named in five
Indictments returned by a federal grand jury sitting in Clarksburg, West Virginia, on March
5, 2013.
United States Attorney William J. Ihlenfeld, II, announced the following indictments: ZSA ZSA DEE FIELDS, age 44, of Detroit, Michigan, was named in a two-count
Indictment charging her with “Introduction of a Prohibited Object - Marijuana” and “False Writing and Representation.” The Indictment alleges that on December 17, 2011, FIELDS provided marijuana to an inmate at FCI Gilmer and completed the “Notification to Visitor” form by stating that she was not in possession of marijuana on that date. If convicted, FIELDS faces up to 5 years imprisonment and a $250,000 fine on each count. This case will be prosecuted by Assistant United States Attorney Brandon S. Flower and was investigated by the Special Investigative Services at FCI Gilmer.TERRELL C. MCQUEEN, age 29 and IMANI NOKIA WALKER, age 24, of Brooklyn, New York, were named in an eight-count Indictment. Count One charges MCQUEEN and WALKER with “Conspiracy to Utter Counterfeit Bills” from January 20, 2012, to February
13, 2012, in Morgantown, West Virginia. Counts Two through Six charge MCQUEEN and WALKER with “Uttering Counterfeit Bills” on January 30, 2012, at Barnes and Noble; on January 30, 2012 and February 4, 2012, at Lowes; on February 4, 2012, at Super K-Mart and Lowes in Morgantown, and on February 13, 2012, at Kroger’s. Counts Seven and Eight charge MCQUEEN with “Uttering Counterfeit Bills” on February 4, 2012, at Best Buy and on February 4, 2012, at Wal-Mart. If convicted, MCQUEEN and WALKER face up to 5 years imprisonment and a $250,000 fine on Count One and up to 20 years imprisonment and a
$250,000 file on each of Counts Two through Eight. This case will be prosecuted by Assistant United States Attorney Andrew R. Cogar and was investigated by the United States Secret Service.JOHN HARLOW, age 46, of Clarksburg, was named in a one-count Indictment charging him with “Possession of a Firearm by a Convicted Felon.” The Indictment alleges that on February 13, 2012, HARLOW possessed a Marlin Rifle after having been convicted three separate times in United States District Court for distribution of cocaine base, distribution of heroin and interstate transportation in aid of racketeering. If convicted, HARLOW faces up to 10 years imprisonment and a $250,000 fine. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
CHARLES ADKINS, age 53, of Erie, Pennsylvania, was named in a one-count Indictment charging him with “Failure to Update Sex Offender Registration.” The Indictment alleges that from November 3, 2012, to January 15, 2013, ADKINS knowingly failed to update a registration pursuant to the Sex Offender Notification Act. If convicted, ADKINS faces up to 10 years imprisonment and a $250,000 fine. This case was investigated by the United States Marshals Service.
ERIC SCOTT BAKER, age 33, MEGAN EILEEN DUNIGAN, age 25 and ROBERT ALLEN HILL, age 24, of Clarksburg, were named in a three-count Indictment. Count One charges BAKER and DUNIGAN with “Conspiracy to Distribute Heroin” from January of
2013 to February 8, 2013, in Clarksburg. Count Two charges BAKER and DUNIGAN with “Possession with Intent to Distribute Heroin” on February 8, 2013, in Clarksburg. Count Three charges BARKER, DUNIGAN and HILL with “Maintaining a Drug-Involved Premise” on February 8, 2013, in Clarksburg. The indictment also seeks the forfeiture of $1,505 in United States currency seized from Barker’s residence on February 8. If convicted, BAKER, DUNIGAN and HILL face up to 20 years imprisonment and a $1,000,000 fine on each of Counts One and Two and up to 20 years imprisonment and a $500,000 fine on Count Three. This case was investigated by the Greater Harrison County Drug Task Force, consisting of officers from the Bridgeport Police Department; Clarksburg Police Department; Drug Enforcement Administration; West Virginia State Police-Bureau of Criminal Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives; and, the United States Marshals Service.These three cases will be prosecuted by Criminal Chief Shawn A. Morgan.
All of the charges contained in the above-referenced indictments are merely accusations and not evidence of guilt, and each defendant is presumed innocent until and unless proven guilty.
Erin Ruth Smith Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on March 5, 2013, before Chief U.S. District Judge Richard F. Cebull, ERIN RUTH SMITH, a 21-year-old resident of Wyola and an enrolled member of the Crow Tribe of Indians, pled guilty to assault resulting in serious bodily injury. Sentencing has been set for June 5, 2013. She is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Marcia K. Hurd, the government stated it would have proved at trial the following:
On August 31, 2012, at approximately 8:30 a.m., SMITH was driving (alone) on the Crow Indian Reservation and then went onto Interstate 90. However SMITH was going the wrong way (eastward in the west-bound lanes). SMITH crashed head-on into a vehicle driven by F.H.M. F.H.M. had moved to the passing lane because he was trying to pass a Suburban. F.H.M.'s wife, L.M., along with two other passengers, B.B.C. and L.C., were critically injured in the crash. F.H.M. was not seriously injured and was released from the hospital later that day. Both L.M. and B.B.C. underwent emergency surgeries on the day of the crash. L.C. underwent surgery on September 4, 2012. Additional surgeries were also done. Doctors for L.M., L.C., and B.B.C signed forms indicating that their injuries met the definition of serious bodily injury. Since the crash, L.M., B.B.C., and L.C. have spent multiple days in the hospital and have had numerous surgeries.
SMITH, at the scene of the crash, admitted to drinking alcohol before the crash. She was interviewed while in the hospital recovering from injuries about the crash and the events leading up to the crash. She indicated that she was not sure how she was driving her friend's car the wrong direction on Interstate 90. SMITH, however, was certain that she had not stolen the car. SMITH recalled drinking whiskey and beer and partying with a friend before the crash. At the end of the interview with the agents, SMITH stated, "I am sorry, guys - I am sorry, never again, no more drinking and driving."
SMITH's blood was drawn shortly after the crash, and was sent to the FBI lab for analysis. The results were that SMITH's BAC was 0.235 gm/ml.
SMITH faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Department of Justice Files its Notice of Approval of the Monitoring PlanRead the Press Release
This afternoon, the Department of Justice filed its “Notice of Approval of the Monitoring Plan for the First Year” with the U.S. District Court. The Notice of Approval states:
The Monitor submitted a draft of the Monitoring Plan to the Parties on February 1, 2013. From February 25 to 28, 2013, the Monitor, the City of Seattle, and the Department of Justice engaged in lengthy and productive discussions about the draft Monitoring Plan. The Monitoring Plan submitted to the Court reflects the input of both Parties during those discussions, and it balances the competing interests of certainty and flexibility.
As the Parties move forward with the first year of implementation of the Settlement Agreement, the Monitoring Plan will provide guidance to the Parties and create clear expectations for the people of Seattle. As such, the Monitoring Plan complies with the requirements of the Settlement Agreement, does not impose new obligations on the parties, and avoids unnecessary delays while still providing an opportunity for collaborative implementation. In addition, the Monitor’s current and proposed work are in line with the budget submitted to and approved by the Parties and the Court in November 2012.
Deland Businessman Convicted for Fraud SchemeRead the Press Release
Jacksonville, Florida - United States Attorney Robert E. O’Neill announces that following a ten day trial, in Orlando, a jury has found Stephen B. Deluca (53, Deland) guilty of one count of conspiracy to commit wire fraud and bank fraud and thirty-two counts of wire fraud. The conspiracy conviction carries a maximum penalty of 30 years in federal prison and a fine of up to $1 million. Each wire fraud conviction carries a maximum of 20 years in federal prison and a fine of up to $250,000. The United States also intends to seek a monetary judgment of $18 million representing the amount of loss to the victim. The sentencing hearing has been set for May 24, 2013.
According to evidence presented at trial, Deluca, the president and sole shareholder of Delco Oil, Inc., engaged in a scheme to defraud several banks insured by the FDIC and a private finance company (CapitalSource Financial Services) by falsely inflating the amount and value of Delco’s inventory and accounts receivable. The inflated amounts were used to secure revolving lines of credit. The scheme resulted in an $18 million loss to CapitalSource.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Russell C. Stoddard.
Davenport Man Sentenced to 10 Years in Federal Prison for Distributing Child PornographyRead the Press Release
Tampa, Florida - U.S. District Judge James D. Whittemore sentenced Preston D. Wilbur (46, Davenport) yesterday to 10 years in federal prison for distributing child pornography. Wilbur pleaded guilty on November 14, 2012.
According to court documents, Wilbur distributed numerous images and videos depicting child pornography to undercover law enforcement officers over the Internet. During the execution of a search warrant at Wilbur's residence, officers seized numerous computers, hard drives, and USB flash drives that contained child pornography. A forensic examination of the seized property revealed more than 300,000 images and 8,389 videos of child pornography.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It was prosecuted by Assistant United States Attorney Stacie B. Harris.
It is another case 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."
Dallas Man Convicted and Fined for Killing Whooping CraneRead the Press Release
CORPUS CHRISTI, Texas – Worthey D. Wiles, 42, of Dallas, has entered a plea of guilty and was sentenced for killing a whooping crane, United States Attorney Kenneth Magidson announced today along with Nick Chavez, special agent in charge of U.S. Fish and Wildlife Service (FWS).
On Jan. 12, 2013, Wiles was a guest hunter at the St. Charles Bay Hunting Club in Rockport which is located inside the designated critical habitat for whooping cranes. While hunting in the marsh adjacent to San Jose Island, Wiles shot and killed a juvenile whooping crane. After contacting Texas Parks and Wildlife (TPW), Wiles told state game wardens he thought the whooping crane was a sandhill crane. Wardens then contacted FWS who located the bird and verified it was a whooping crane.
“The whooping crane is one of the most beautiful and highly valued species of America’s wildlife heritage,” said Chavez. “FWS is committed to protecting this extraordinary bird so that future generations of Americans are able to marvel at its grace and beauty.”
Whooping cranes are one of the rarest birds in the world with a total population of approximately 437 cranes in the wild and 599 overall. The juvenile whooper killed by Wiles is believed to have been one of only 34 juveniles that migrated 2,500 miles from Canada during the fall to Port Aransas. The whooping crane population that winters in Texas is the only self-sustaining wild population of whooping cranes in the world. This case is only the fifth known shooting death of a whooping crane since 1968.
Today, Wiles appeared before United States Magistrate Judge B. Janice Ellington and entered a plea of guilty to one count of violating the Migratory Bird Treaty Act, which provides protection for Migratory Birds. As a result, he was ordered to pay a $5,000 fine and make a $10,000 community service payment to the non-profit organization Friends of Aransas and Matagorda Island National Wildlife Refuges. He will also serve a one-year-term of probation for his conviction.
The case was investigated by FWS and TPW. Assistant U.S. Attorney Hugo R. Martinez prosecuted the case.