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5 March 2013
Former U.S. Consulate Guard Sentenced to Nine Years in Prison <br /> for Attempting to Communicate National Defense Information to ChinaRead the Press Release
Bryan Underwood, a former civilian guard at a U.S. Consulate compound under construction in China, was sentenced today to nine years in prison in connection with his efforts to sell for personal financial gain classified photographs, information and access related to the U.S. Consulate to China’s Ministry of State Security (MSS), announced Lisa Monaco, Assistant Attorney General for the Justice Department’s National Security Division; Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Gregory B. Starr, Director of the U.S. State Department’s Diplomatic Security Service.
Underwood pleaded guilty Aug. 30, 2012, in the U.S. District Court for the District of Columbia to one count of attempting to communicate national defense information to a foreign government with intent or reason to believe that the documents, photographs or information in question were to be used to the injury of the United States or to the advantage of a foreign nation. He was sentenced by the Honorable Ellen S. Huvelle. Upon completion of his prison term, Underwood will be placed on two years of supervised release.
Underwood, 32, a former resident of Indiana, was first charged in an indictment on Aug. 31, 2011, with two counts of making false statements and was arrested on Sept. 1, 2011. On Sept. 21, 2011, he failed to appear at a scheduled status hearing in federal court in the District of Columbia. The FBI later located Underwood in a hotel in Los Angeles and arrested him there on Sept. 24, 2011. On Sept. 28, 2011, Underwood was charged in a superseding indictment with one count of attempting to communicate national defense information to a foreign government, two counts of making false statements and one count of failing to appear in court pursuant to his conditions of release.
“Bryan Underwood betrayed America’s trust by attempting to sell access to secure areas of the very U.S. Consulate compound he was charged to protect,” said Assistant Attorney General Monaco. “Today, he is being held accountable for his actions. As this case demonstrates, we remain vigilant in protecting America’s secrets and in bringing to justice those who seek to compromise them.”
“Access to classified information is a special responsibility to be honored, not a financial opportunity to be exploited,” said U.S. Attorney Machen. “Bryan Underwood is going to prison because he tried to make millions by selling secret photos of a U.S. Consulate to a foreign government. His sentence demonstrates our dedication to jealously guarding our nation’s secrets. We all owe a great debt of gratitude to the agents who detected and stopped Underwood before he succeeded in betraying our country.”
“Bryan Underwood attempted to betray his country by using his access to sensitive information for his own benefit. Fortunately, he was stopped before classified information fell into the wrong hands,” said FBI Assistant Director in Charge Parlave. “Together with our partner agencies, the FBI will continue to diligently work to combat potential acts of espionage that threaten our national security.”“The close working relationship between the U.S. Department of State’s Diplomatic Security Service, the FBI and the U.S. Attorney’s Office resulted in the conviction of Bryan Underwood before he could potentially harm the security of our country,” said Director Starr of the Diplomatic Security Service. “This was a great success by all of the agencies involved.”
According to court documents, from November 2009 to August 2011, Underwood worked as a cleared American guard (CAG) at the site of a new U.S. consulate compound that was under construction in Guangzhou, China. During this time, the compound was not yet operational. CAGs are American civilian security guards with top secret clearances who serve to prevent foreign governments from improperly obtaining sensitive or classified information from the construction site. Underwood received briefings on how to handle and protect classified information as well as briefings and instructions on security protocols for the U.S. Consulate, including the prohibition on photography in certain areas of the consulate.
In February 2011, Underwood was asked by U.S. law enforcement to assist in a project at the consulate and he agreed. In March and April of 2011, Underwood lost a substantial amount of money in the stock market. According to court documents, Underwood then devised a plan to use his assistance to U.S. law enforcement as a “cover” for making contact with the Chinese government. According to his subsequent statements to U.S. law enforcement, Underwood intended to sell his information about and access to the U.S. Consulate to the Chinese MSS for $3 million to $5 million. If any U.S. personnel caught him, he planned to falsely claim he was assisting U.S. law enforcement.
As part of his plan, Underwood wrote a letter to the Chinese MSS, expressing his “interest in initiating a business arrangement with your offices” and stating, “I know I have information and skills that would be beneficial to your offices [sic] goals. And I know your office can assist me in my financial endeavors.” According to court documents, Underwood attempted to deliver this letter to the offices of the Chinese MSS in Guangzhou, but was turned away by a guard who declined to accept the letter. Underwood then left the letter in the open in his apartment hoping that the Chinese MSS would find it, as he believed the MSS routinely conducted searches of apartments occupied by Americans.
In May 2011, Underwood secreted a camera into the new U.S. consulate compound and took photographs of a restricted building and its contents. Several of these photographs depict areas or information classified at the Secret level. Underwood also created a schematic that listed all security upgrades to the U.S. consulate and drew a diagram of the surveillance camera locations at the consulate. In addition, according to his subsequent statements to U.S. law enforcement, Underwood “mentally” constructed a plan in which the MSS could gain undetected access to a building at the U.S. consulate to install listening devices or other technical penetrations.
According to court documents, the photographs Underwood took were reviewed by an expert at the State Department’s Bureau of Diplomatic Security who had original classification authority for facilities, security and countermeasures at the U.S. Consulate. The expert determined that several of the photographs contained images classified at the Secret level and that disclosure of such material could potentially cause serious damage to the United States.
In early August 2011, Underwood was interviewed several times by FBI and Diplomatic Security agents, during which he admitted making efforts to contact the Chinese MSS, but falsely claimed that he took these actions to assist U.S. law enforcement. On Aug. 19, 2011, Underwood was again interviewed by law enforcement agents and he admitted that he planned to sell photos, information and access to the U.S. Consulate in Guangzhou to the Chinese MSS for his personal financial gain.
After initially being arraigned in this case on Sept. 1, 2011, Underwood was released on his personal recognizance, with certain conditions, including staying within the Washington, D.C. metropolitan area and returning to court for a status hearing on Sept. 21, 2011. Instead of returning to court as promised, Underwood purchased a bicycle, racks, panniers, helmet and multiple energy snack bars. He left a fake suicide note at his hotel room in Springfield, Va. Then, alive and well, he pedaled west out of Springfield and eventually boarded a bus in Wytheville, Va., under a false name. He was arrested on Sept. 24, 2011 in a hotel room in Los Angeles, with over $10,000 in cash and 80,000 Japanese yen. He has been in custody ever since.
The U.S. government has found no evidence that Underwood succeeded in passing classified information concerning the U.S. Consulate in Guangzhou to anyone at the Chinese MSS.
This investigation was conducted jointly by the FBI’s Washington Field Office and the State Department’s Bureau of Diplomatic Security. The prosecution was handled by the U.S. Attorney’s Office for the District of Columbia and Trial Attorney Brandon L. Van Grack from the Counterespionage Section of the Justice Department’s National Security Division.
Former U.S. Consulate Guard Sentenced to Nine Years in Prison for Attempting to Communicate National Defense Information to ChinaRead the Press Release
WASHINGTON – Bryan Underwood, a former civilian guard at a U.S. Consulate compound under construction in China, was sentenced today to nine years in prison in connection with his efforts to sell for personal financial gain classified photographs, information and access related to the U.S. Consulate to China’s Ministry of State Security (MSS).
Underwood pled guilty Aug. 30, 2012, in the U.S. District Court for the District of Columbia, to one count of attempting to communicate national defense information to a foreign government with intent or reason to believe that the documents, photographs or information in question were to be used to the injury of the United States or to the advantage of a foreign nation. He was sentenced by the Honorable Ellen S. Huvelle. Upon completion of his prison term, Underwood will be placed on two years of supervised release.
The sentence was announced by Lisa Monaco, Assistant Attorney General for National Security; Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Gregory B. Starr, Director of the U.S. State Department’s Diplomatic Security Service.
Underwood, 32, a former resident of Indiana, was first charged in an indictment on Aug. 31, 2011, with two counts of making false statements and was arrested on Sept. 1, 2011. On Sept. 21, 2011, he failed to appear at a scheduled status hearing in federal court in the District of Columbia. The FBI later located Underwood in a hotel in Los Angeles and arrested him there on Sept. 24, 2011. On Sept. 28, 2011, Underwood was charged in a superseding indictment with one count of attempting to communicate national defense information to a foreign government, two counts of making false statements and one count of failing to appear in court pursuant to his conditions of release.
“Bryan Underwood betrayed America’s trust by attempting to sell access to secure areas of the very U.S. Consulate compound he was charged to protect. Today, he is being held accountable for his actions. As this case demonstrates, we remain vigilant in protecting America’s secrets and in bringing to justice those who seek to compromise them,” said Assistant Attorney General Monaco.
“Access to classified information is a special responsibility to be honored, not a financial opportunity to be exploited,” said U.S. Attorney Machen. “Bryan Underwood is going to prison because he tried to make millions by selling secret photos of a U.S. Consulate to a foreign government. His sentence demonstrates our dedication to jealously guarding our nation’s secrets. We all owe a great debt of gratitude to the agents who detected and stopped Underwood before he succeeded in betraying our country.”
“Bryan Underwood attempted to betray his country by using his access to sensitive information for his own benefit. Fortunately, he was stopped before classified information fell into the wrong hands,” said FBI Assistant Director in Charge Parlave. “Together with our partner agencies, the FBI will continue to diligently work to combat potential acts of espionage that threaten our national security.”
“The close working relationship between the U.S. Department of State’s Diplomatic Security Service, the FBI and the U.S. Attorney’s Office resulted in the conviction of Bryan Underwood before he could potentially harm the security of our country,” said Director Starr of the Diplomatic Security Service. “This was a great success by all of the agencies involved.”
According to court documents, from November 2009 to August 2011, Underwood worked as a cleared American guard (CAG) at the site of a new U.S. Consulate compound that was under construction in Guangzhou, China. During this time, the compound was not yet operational. CAGs are American civilian security guards with Top Secret clearances who serve to prevent foreign governments from improperly obtaining sensitive or classified information from the construction site. Underwood received briefings on how to handle and protect classified information as well as briefings and instructions on security protocols for the U.S. Consulate, including the prohibition on photography in certain areas of the consulate.
In February 2011, Underwood was asked by U.S. law enforcement to assist in a project at the consulate and he agreed. In March and April of 2011, Underwood lost a substantial amount of money in the stock market. According to court documents, Underwood then devised a plan to use his assistance to U.S. law enforcement as a “cover” for making contact with the Chinese government. According to his subsequent statements to U.S. law enforcement, Underwood intended to sell his information about and access to the U.S. Consulate to the Chinese MSS for $3 million to $5 million. If any U.S. personnel caught him, he planned to falsely claim he was assisting U.S. law enforcement.
As part of his plan, Underwood wrote a letter to the Chinese MSS, expressing his “interest in initiating a business arrangement with your offices” and stating, “I know I have information and skills that would be beneficial to your offices [sic] goals. And I know your office can assist me in my financial endeavors.” According to court documents, Underwood attempted to deliver this letter to the offices of the Chinese MSS in Guangzhou, but was turned away by a guard who declined to accept the letter. Underwood then left the letter in the open in his apartment hoping that the Chinese MSS would find it, as he believed the MSS routinely conducted searches of apartments occupied by Americans.
In May 2011, Underwood secreted a camera into the new U.S. Consulate compound and took photographs of a restricted building and its contents. Several of these photographs depict areas or information classified at the Secret level. Underwood also created a schematic that listed all security upgrades to the U.S. Consulate and drew a diagram of the surveillance camera locations at the consulate. In addition, according to his subsequent statements to U.S. law enforcement, Underwood “mentally” constructed a plan in which the MSS could gain undetected access to a building at the U.S. Consulate to install listening devices or other technical penetrations.
According to court documents, the photographs Underwood took were reviewed by an expert at the State Department’s Bureau of Diplomatic Security who had original classification authority for facilities, security and countermeasures at the U.S. Consulate. The expert determined that several of the photographs contained images classified at the Secret level and that disclosure of such material could potentially cause serious damage to the United States.
In early August 2011, Underwood was interviewed several times by FBI and Diplomatic Security agents, during which he admitted making efforts to contact the Chinese MSS, but falsely claimed that he took these actions to assist U.S. law enforcement. On Aug. 19, 2011, Underwood was again interviewed by law enforcement agents and he admitted that he planned to sell photos, information and access to the U.S. Consulate in Guangzhou to the Chinese MSS for his personal financial gain.
After initially being arraigned in this case on Sept. 1, 2011, Underwood was released on his personal recognizance, with certain conditions, including staying within the Washington, D.C. metropolitan area and returning to court for a status hearing on Sept. 21, 2011. Instead of returning to court as promised, Underwood purchased a bicycle, racks, panniers, helmet and multiple energy snack bars. He left a fake suicide note at his hotel room in Springfield, Va. Then, alive and well, he pedaled west out of Springfield and eventually boarded a bus in Wytheville, Va., under a false name. He was arrested on Sept. 24, 2011 in a hotel room in Los Angeles, with over $10,000 in cash and 80,000 Japanese yen. He has been in custody ever since.
The U.S. government has found no evidence that Underwood succeeded in passing classified information concerning the U.S. Consulate in Guangzhou to anyone at the Chinese MSS.
This investigation was conducted jointly by the FBI’s Washington Field Office and the State Department’s Bureau of Diplomatic Security. The prosecution was handled by the U.S. Attorney’s Office for the District of Columbia and Trial Attorney Brandon L. Van Grack from the Counterespionage Section of the Justice Department’s National Security Division.
13-082Former Postal Service Employee Sentenced to Two Years in Prison for Stealing Credit/Debit Card Information from U.S. MailRead the Press Release
LAS VEGAS, Nev. – A former mail sorter for the U.S. Postal Service in Las Vegas was sentenced today to two years in federal prison after he was caught stealing items from the mail, including credit and debit card information, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Jerome Harvey, 34, of Las Vegas, who pleaded guilty in November 2012, to one count of aggravated identity theft, was sentenced by Senior U.S. District Judge Kent J. Dawson to a mandatory two year prison term, one year of supervised release, and ordered to pay $5,951 in restitution.
According to the plea agreement, between May and July 2011, Harvey worked as a casual employee sorting mail for the U.S. Postal Service in Las Vegas. In that capacity, he stole items from the mail, including credit and debit cards and personal identification numbers. Harvey stole the information of 12 individuals, and used it to gain access to their financial accounts and to obtain other things of value. The total amount of actual loss associated with the thefts was $5,951.
Harvey is free on a personal recognizance bond, and was permitted to self-report to federal prison by June 7, 2013.
The case was investigated by the United States Postal Inspection Service, and is being prosecuted by Assistant U.S. Attorney Christina M. Brown.
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.
Former Partner at Major International Law Firm Pleads Guilty in Manhattan Federal Court to Tax Fraud ViolationsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that THEODORE L. FREEDMAN, a former senior partner at a major international law firm (the “Law Firm”), pled guilty today in Manhattan federal court to four counts of tax fraud for under-reporting his partnership income at the Law Firm by a total of approximately $2 million from 2001 to 2004. FREEDMAN pled guilty before U.S. District Judge Deborah A. Batts.
Manhattan U.S. Attorney Preet Bharara stated: “Theodore Freedman was an attorney at a high-powered and prestigious law firm who lied about his multi-million dollar compensation in order to avoid paying taxes, breaking the law and violating his professional code of conduct. Two things are certain: Freedman will now have to pay his taxes and more; and Freedman is now an admitted felon who has sacrificed his reputation, career, and potentially his liberty, for a few dollars. Others should not make the same bad calculation.”
According to the Indictment and statements made at today’s plea proceeding:
FREEDMAN was a senior partner in the New York office of a major international law firm, where he was a member of the Law Firm’s restructuring group. In that capacity, FREEDMAN received income that was calculated as a percentage of the Law Firm’s partnership income for a given year. The Law Firm issued FREEDMAN the IRS form that reports an individual partner’s share of income or loss from the partnership. According to the form, FREEDMAN's aggregate income for calendar years 2001 through 2004 was approximately $5,388,699.
FREEDMAN self-prepared, signed, and filed tax returns for calendar years 2001 through 2004. Rather than reporting the true and correct amount of partnership income he received from the Law Firm for the years in question, FREEDMAN falsely and fraudulently under-reported his income in the aggregate amount of approximately $2,097,211.
FREEDMAN, 65, of Pine Plains, New York, faces a maximum sentence of three years in prison on each of the tax fraud counts, for a total maximum sentence of 12 years in prison. As part of his plea agreement, FREEDMAN is also required to pay more than $671,000 in restitution to the IRS and more than $169,000 in restitution to New York State. He is scheduled to be sentenced by Judge Batts on September 17, 2013, at 10:30 a.m.
Mr. Bharara praised the work of the Internal Revenue Service, Criminal Investigation.
This case is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorney Jonathan Cohen is in charge of the prosecution.
U.S. v. Theodore L. Freedman Indictment
Former Lakeland Student Indicted on Fraud ChargesRead the Press Release
A two-count indictment was filed charging a Cleveland woman with crimes related to the misuse of more than $6,000 in federal financial aid, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Tanya Oliver, 28, is charged with one count each of mail fraud and student aid fraud.
Oliver enrolled at Lakeland Community College in Kirtland, Ohio. During the 2007-2008 school year, Oliver fraudulently caused more than $6,000 in federal financial aid to be provided to Lakeland for the purposes of funding her education. Those monies were the basis for providing refunds to Oliver in the amount of $5,174.95, according to the indictment.
Oliver obtained the funds for the purpose of using the monies for her own personal use, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Christos M. Georgalis following an investigation by the U.S. Department of Education, Office of Inspector General.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation.
In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
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.
Former Intermediate Unit Executive Director Fred R. Rosetti Sentenced to 33 Months’ ImprisonmentRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that the former Executive Director of the Northeastern Intermediate Unit #19 was sentenced today by U.S. District Court Judge Robert D. Mariani to 33 months’ imprisonment and a $30,000 fine for fraud and theft.
Judge Mariani ordered Rosetti to make restitution to the NEIU in the amount of $137,944.13 immediately.
During the three-hour sentencing hearing today, the court heard testimony concerning three individuals who told the FBI and investigators from the U.S. Department of Education - Office of Inspector General that Rosetti had attempted to influence the investigation in conversations that he had with them while the investigation was underway.
The court also heard testimony from two officials from the NEIU, Dr. Clarence Lamanna, the current Executive Director and Tom Rink, the Fiscal Director. Both men testified about the fiscal loss to the Unit caused by Rosetti’s activities and the loss of the Unit’s reputation.
U.S. Attorney Smith stated that, “The cooperation and support of the investigation provided by the NEIU staff members and the current officials, and especially the statements made today, showed that the vast majority of the staff of the NEIU are dedicated professionals and that Rosetti’s admitted abuse of the public trust was something that most of the staff of the NEIU had never approved or accepted.”
The indictment returned in February 2012 alleged that between July 1, 1998 through June 30, 2010, Rosetti, age 64, Archbald, engaged in a scheme to defraud the Northeastern Intermediate Unit #19 (NEIU). The indictment charged that during his tenure as Executive Director, Rosetti fraudulently, improperly, and unlawfully converted funds and property of the NEIU for his personal benefit and for the personal benefit of his family.
According to the summary of the evidence presented in court and in filings by Assistant U.S. Attorney Michelle Olshefski, Rosetti directed and ordered NEIU employees to perform home maintenance services at his personal residence, personal secretarial services, personal shopping for Rosetti and his family, and to assist in the planning and preparation of Rosetti family events.
Rosetti created false travel vouchers and directed and ordered NEIU employees to create false travel vouchers for the benefit of Rosetti.
Rosetti also intentionally failed to document his time-off in the form of used vacation, sick and personal days which enabled him to include all of the undocumented time-off in an accumulation of days for which he received a cash payout at the time of his retirement.
Intermediate Units provide services and support for special education in school districts throughout the State. The NEIU supports 20 school districts in northeastern Pennsylvania.
Rosetti pled guilty on February 7, 2013, after entering into a plea agreement with the U.S. Attorney’s Office.
In February 2013, Judge Mariani rejected Rosetti’s binding plea agreement in which Rosetti would be sentenced to a 12-18 month range prison term. At that point, Rosetti was entitled to withdraw the plea. However, he chose not to do so.
As a result of his activities, Rosetti has lost a substantial portion of his pension benefits as a result of an action taken last fall by the Pennsylvania School Employee Retirement System after Rosetti’s guilty plea.U.S. Attorney Smith noted that the discovery and exposure of Rosetti’s scheme was the result of a prompt and thorough investigation by the Pennsylvania Department of the Auditor General’s Office of Special Investigations.
“This case is an example of how the investigating and auditing process works well when there is cooperation among government agencies,” said PA Auditor General Eugene DePasquale. “I commend the professional investigators and auditors on our staff for their diligence and hard work.”
A joint investigation by the Federal Bureau of Investigation (FBI), and the United States Department of Education - Office of Inspector General then followed. Prosecution of the case was assigned to Assistant United States Attorney Michelle Olshefski.Judge Mariani ordered Rosetti to report to the Bureau of Prisons on April 4, 2013.
Former City of Cleveland Employee Indicted for ExtortionRead the Press Release
A former City of Cleveland employee was indicted on charges of Hobbs Act extortion for attempting to extort bribes from three companies in connection with his employment as a contract compliance officer, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.
Lejon C. Woods, age 29, of Cleveland, is charged with three counts of extortion under color of official right.
“The businesses solicited by Woods were not involved in any type of illegal conduct,” Dettelbach said. “To the contrary, these companies should be commended because they came forward and contacted law enforcement when Woods made his bribe solicitations.”
The indictment charges that Woods, while acting in his capacity as a contract compliance officer with the City of Cleveland, solicited bribes from representatives of three local businesses, one of which was a nonprofit business, in connection with fines which were going to be imposed for non-compliance of contract requirements.
The conduct took place from May 18, 2010, through August 5, 2010, according to the indictment.
When City of Cleveland funds are used to pay for any part of a construction or rehabilitation project, the company involved in the project is subject to City of Cleveland, Office of Contract Compliance regulations relating to the hiring of certain percentages of minority business enterprises, disadvantaged business enterprises and city resident workers, according to the indictment.
The indictment alleges that at various times, Woods told representatives of the three companies that in exchange for a cash payment, Woods would alter records with the City of Cleveland to reflect compliance.
Woods obtained or attempted to obtain cash payments of $2,800, $3,000 and $1,200 from the respective companies, according to the indictment.The indictment is a result of an investigation conducted by the Federal Bureau of Investigation with assistance from the Cleveland Division of Police, Intelligence Unit. This case is being prosecuted by Assistant United States Attorney Henry F. DeBaggis.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation.
In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
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.
Former City Finance Dept. Employee Sentenced for Wire FraudRead the Press Release
Court Orders Restitution of $365,000
COEUR D'ALENE – Sheryl Lynn Carroll, 52, of Coeur d’Alene, Idaho, was sentenced yesterday in United States District Court to 40 months in prison followed by three years of supervised release for wire fraud, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Carroll to pay restitution in the amount of $365,000 and perform 100 hours of community service following her release from prison. Carroll pleaded guilty to six counts of wire fraud on November 5, 2012.
According to the plea agreement, Carroll was hired by the City of Coeur d'Alene in October 2002, as a payroll coordinator in the Finance Department. Beginning in at least 2007, Carroll devised a scheme to divert money from City of Coeur d’Alene bank accounts for her own personal benefit. At her plea hearing last November, Carroll admitted that she diverted payments intended for the Voluntary Employee Benefit Association (VEBA), International Association of Fire Fighters (IAFF), and United Heritage Mutual (UHM), all legitimate vendors who regularly received payment from the City of Coeur d'Alene. According to the plea agreement, Carroll represented that she was sending wire transfers to the vendors when in fact she was transferring the funds into her own personal bank account. On average, Carroll made fraudulent wire transfers from one to three times a month for several years. Carroll admitted that she fraudulently received approximately $365,000 from the City of Coeur d'Alene.
In court yesterday, Carroll apologized to her former employees and the taxpayers for taking the money that was not hers.
“Ms. Carroll, through her diversion of public money for her own personal gain, violated the trust of the citizens she was supposed to serve,” said Olson. “Public employees have a solemn obligation to ensure that taxpayer money is used for the public good. The U.S. Attorney’s Office will continue to work with state and local law enforcement and prosecutors to ensure that fraud is not a part of government business. I commend the Kootenai County Prosecutor’s Office and employees of the City of Coeur d’Alene for their cooperation and assistance to the U.S. Attorney’s Office.”
The case was investigated by the Kootenai County Sheriff’s Office and the United States Secret Service.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Federal and State Authorities Arrest Del Rio-based Texas Mexican Mafia Members on Federal ChargesRead the Press Release
United States Attorney Robert Pitman, Federal Bureau of Investigation (FBI) Special Agent in Charge Armando Fernandez, Homeland Security Investigations (HSI) Acting Special Agent in Charge Vincent Iglio, Drug Enforcement Administration (DEA) Special Agent in Charge Javier Pena, and Texas Department of Public Safety Director Steven McCraw announced today that seven Del Rio, Texas-based members and associates of the Texas Mexican Mafia (TMM) have been arrested based on a federal indictment charging Racketeer Influenced and Corrupt Organizations (RICO) Act violations as well as narcotics trafficking and firearms offenses. An eighth TMM associate was arrested for Misprision of a Felony. A ninth TMM associate was indicted for cocaine trafficking in a separate indictment and remains at large.
Those arrested, and charged by indictment include: 43-year-old Jesus Meza, Jr.; 43-year-old Jose Cardona, aka “Tinga”; 46-year-old Roberto Villarreal, aka “Flaco”; 40-year-old Ricardo Zapata, aka “Richie”; 29-year-old Daniel Rosario Lara, aka “Diablo”; 20-year-old Joel Costilla, aka “Sharky”; 26-year-old Joe Lee Jimenez; 21-year-old Ray Salgado; 20-year-old Jessica Meza. 29-year-old Pedro Armando Cardona remains at large.
A federal grand jury indictment, returned on February 27, 2013, and unsealed today, alleges that since June 1, 2010, the seven defendants charged with conspiring to violate the RICO Act were members or associates of the TMM and engaged in a pattern of extortion, attempted murder, attempted kidnapping, narcotics trafficking, and gun smuggling. The TMM is alleged to have transported bulk shipments of marijuana on behalf of a narcotics distributer based in Mexico affiliated with the Los Zetas Drug Trafficking Organization and supplied firearms to narcotics traffickers based in Mexico. The indictment also alleges that the defendants conspired to extort money from narcotics traffickers operating in Del Rio through the coercive collection of a ten percent drug tax, also known as “the dime.” Collection of “the dime” was enforced by robbery, serious bodily injury or other acts of violence.
The indictment also charges defendants Meza, Lara, and Costilla with conspiracy to possess with intent to distribute more than 100 kilograms of marijuana; defendants Meza, Cardona, Salgado, Costilla, and Jimenez with possession with intent to distribute less than 500 grams of cocaine; defendants Meza, Villarreal, and Costilla with smuggling an AR-15 style assault rifle to Mexico; and defendant Meza is charged with being in possession of six assault rifles after previously being convicted of a felony offense.
Upon conviction, the defendants face up to 20 years in federal prison on the RICO charge; between 5 and 40 years in federal prison for the marijuana charge; up to 20 years in prison on the cocaine charge; and up to 10 years in prison for each firearm charge.
Jessica Meza is facing two counts of Misprision of a Felony—alleging that she knowingly concealed the drug distribution crimes of others—and faces up to three years in prison for each count.
An additional indictment charges Pedro Armando Cardona with conspiracy to possess with intent to distribute cocaine as well as possession with intent to distribute cocaine. He faces up to 20 years in federal prison.
All eight defendants in custody had their initial appearance before Magistrate Judge Victor Garcia today. All eight were detained pending a detention hearing set for 9:00am on Friday March 8, 2013.
According to FBI Special Agent in Charge Fernandez, "Today's arrests confirm our on-going and collective efforts to continue the dismantling of the Texas Mexican Mafia wherever we find them operating."
"Today’s arrests show our collective resolve in Del Rio to attack and dismantle these dangerous street gangs," said Vincent Iglio, Acting Special Agent in Charge of HSI San Antonio. He went on to say that, "HSI remains committed to identifying gang members and removing them from the streets in the name of public safety.”
This investigation was conducted by the Federal Bureau of Investigation together with Homeland Security Investigations, the Texas Department of Public Safety--Criminal Investigations Division, and the Drug Enforcement Administration. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Marshals Service, and U.S. Customs and Border Protection also assisted in the investigation. This case will be prosecuted in the Del Rio Division of the Western District of Texas.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.Erie Man Sentenced to Prison for Conspiring to Distribute CocaineRead the Press Release
ERIE, PA. - A resident of Erie, Pennsylvania, has been sentenced in federal court to 24 months in prison on his conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill, Jr. imposed the sentence on Ollie Dion Pullium, 32.
According to information presented to the court, on January 10, 2012, Pullium conspired with another individual to distribute two ounces of cocaine.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the EAGLE task force, which is comprised of members of the Federal Bureau of Investigation, the Pennsylvania State Police, and the Erie Police Department for the investigation leading to the successful prosecution of Pullium.
Dominican National Sentenced to Federal Prison in Identity Theft SchemeRead the Press Release
PROVIDENCE, R.I. – Rafael Lara-Mejia, a/k/a Gabriel Arenas, Martin Muniz Rosado, and Jeffrey Montanez Rivera, a Dominican national living in Providence, was sentenced today to 24 months in federal prison for his role in a scheme to steal and sell the identities and corresponding identity documents of Puerto Rican U.S. citizens, announced United States Attorney Peter F. Neronha.
In December 2012, Lara-Mejia pleaded guilty in U.S. District Court in Providence to one count each of conspiracy to commit identification fraud and conspiracy to encourage an alien to reside in the United States for financial gain. Lara-Mejia was among fifty individuals named in a federal indictment returned on December 29, 2011, in Puerto Rico.
The indictment alleges that conspirators located in the Savarona area of Caguas, Puerto Rico, illegally obtained Puerto Rican identities and corresponding identity documents. Conspirators in various locations throughout the United States (identity brokers) solicited customers, while identity brokers, like Lara-Mejia, sold Social Security cards and corresponding Puerto Rico birth certificates for prices ranging from $700 to $2,500 per set.
The indictment alleges that the customers generally obtained the documents to assume the identity of Puerto Rican U.S. citizens in order to, among other things, obtain additional identification documents, such as legitimate state driver’s licenses. Some customers obtained the documents to commit financial fraud and attempted to obtain a U.S. passport.
Appearing before Judge John J. McConnell, Jr. on December 10, 2012, Lara-Mejia admitted to the court that beginning in at least April 2009 and continuing through January 2012, he and his co-conspirators sold personal identifying information, including names, dates of birth, and Social Security numbers of Puerto Rican U.S. citizens to between 25 and 99 undocumented aliens and others residing within the United States, including in Rhode Island. Lara-Mejia also admitted that he and his co-conspirators sold Puerto Rico government-issued issued birth certificates, Social Security cards, driver's licenses and voter registration cards belonging to Puerto Rican U.S. citizens.
Lara-Mejia has been detained since his arrest in Rhode Island on March 27, 2012. He faces deportation proceedings upon completion of his prison term.
The case was prosecuted by District of Rhode Island Assistant U.S. Attorney Richard B. Myrus, and Senior Trial Attorney James Yoon and Trial Attorney Sarah Chang of the Justice Department’s Criminal Division.
The matter was investigated by Homeland Security Investigations; U.S. Postal Inspection Service; U.S. State Department, Diplomatic Security Service; and Internal Revenue Service-Criminal Investigation.
Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites including the Federal Trade Commission ID Theft Website, www.ftc.gov/idtheft. Additional resources regarding identity theft can be found at http://www.ojp.usdoj.gov/ovc/pubs/ID_theft/idtheft.html; http://www.ssa.gov/pubs/10064.html ; http://www.fbi.gov/about-us/investigate/cyber/identity_theft; and http://www.irs.gov/privacy/article/0,,id=186436,00.html.
Contact: 401-709-5357
[email protected]District Man Sentenced to 15 Years in Prison for Carjacking, Other Charges in Attacks in Southeast Washington-Defendant Carjacked Two Vehicles, Including One with A Pregnant Woman-Read the Press Release
WASHINGTON - James Corbin, 64, of Washington, D.C., was sentenced today to 15 years in prison on carjacking, robbery and theft charges in the violent takeover of two cars in a single afternoon, U.S. Attorney Ronald C. Machen Jr. announced.
Corbin hijacked one of the cars from a pregnant woman and rode off with her still in the passenger seat. He beat and threatened her until he finally pushed her out of the vehicle.
Corbin was found guilty by a jury in December 2012, following a trial in the Superior Court of the District of Columbia, of two counts of carjacking, one count of robbery, and one count of first-degree theft. He was sentenced by the Honorable Stuart G. Nash. Upon completion of his prison term, Corbin will be placed on three years of supervised release.
According to the government’s evidence, the crimes took place on the afternoon of Dec. 16, 2007. Corbin’s first target was a woman who got lost in Southeast Washington while driving her five-year-old daughter to a violin concert. She saw Corbin walking, pulled up to him, and asked for directions. Without warning, Corbin jumped into the passenger seat, claiming that he lived near her destination and that he would provide directions as she kept driving.
Fighting against her impulse to believe she was in a dangerous situation, the woman drove with Corbin for about 10 minutes until he told her to slow down inside Fort Dupont Park. She did so, and Corbin tried to grab the keys from the ignition. When he couldn’t get the keys, Corbin got out of the car, went to the driver’s side door, and attempted to pull the woman out of the vehicle. As this was happening, two people pulled up behind her and ran towards the scene. Corbin ran off into the woods and got away. Corbin left behind some blood smears in the car.
Less than 30 minutes later, Corbin got into the front seat of another car that was parked near a gas station in the 2500 block of Pennsylvania Avenue SE. The victim, who was three months pregnant, was in the passenger seat while her boyfriend was inside the gas station.
Corbin approached the car, made eye contact, and suddenly got into the driver’s seat, yelling for the woman to exit the vehicle. The victim opened her door and tried to yell to her boyfriend for help. In response, Corbin punched her in the chest, pulled the door closed, and sped off with her still in the car. As he did so, Corbin told the woman, “…you should have gotten out. Now I’m going to kill you.” He said that he had a gun and would shoot her.
As they sped along the street, the victim tried to look behind the car, in hopes that someone might be following them and trying to help. As she did so, Corbin punched her in the face and demanded that she sit down. He then punched her in the stomach. The victim feared for her life and prayed for the safety of herself and the baby she was carrying. She remembered that she had a bottle of ginger ale in the car, and poured it onto her lap. She pleaded with Corbin, “I’m pregnant! I’m bleeding! I’m having a miscarriage!” This gave Corbin momentary pause. He slowed down the car– but did not stop – and pushed her out of the vehicle.
No arrest was made that day. DNA eventually linked Corbin to the blood left on the car at Fort Dupont Park. Follow-up investigation by the FBI and the U.S. Park Police established that Corbin was the source of that blood. Further investigation led to charges in both carjackings.
In announcing the sentence, U.S. Attorney Machen commended the work of the U.S. Park Police and the Metropolitan Police Department. He also acknowledged the assistance of the FBI’s laboratory analysts and the District of Columbia Department of Forensic Services. He expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Theresa Nelson and Antoinette Sakamsa; Supervisory Paralegal Specialist Lesley Slade; Litigation Technology Specialist Leif Hickling; Jim Brennan, of the Victim Assistance Unit, and John Cummings, Chief of the Felony Major Crimes Section. Finally, he commended the work of Assistant U.S. Attorneys Erik Kenerson and Peter Lallas, who investigated and tried the case.
13-084Department of Justice Statement on Seattle Police Department Monitoring PlanRead the Press Release
After extensive and productive conversations with the parties and working hundreds of hours with members of the Seattle Police Department, the Monitor has submitted a plan that provides clear guidance and certainty for SPD’s reform efforts. The Monitoring Plan details the requirements and deadlines for new policies and training, the Monitor’s role in assuring compliance under the Settlement Agreement, and, ultimately, what success looks like.
The Monitor has proposed a process for the development of policies and training that allows for significant collaboration among the parties and for critical community input. The community must have faith and confidence that the reforms Seattle agreed to are implemented fully, efficiently, and effectively.
In an effort to avoid unnecessary distractions or delay, the Department of Justice will expedite its final review of the Monitoring Plan and anticipates filing its notice of approval with the Court soon.
Crime Stoppers Tip Helps Catch Bank RobberRead the Press Release
McALLEN, Texas – A Palmview resident accused of robbing the International Bank of Commerce in McAllen has now been convicted, United States Attorney Kenneth Magidson announced today. Erick Lee Chiu, 21, entered a plea of guilty just a short time ago.
In November 2012, Chiu walked into the bank wearing a wig and trying to conceal his identity, and handed the teller a note demanding money. The note threatened that he had a gun, but that no one would be hurt as long as they did not call the police. Bank tellers handed Chiu the money and fled the bank before law enforcement arrived.
Through a McAllen Crime Stoppers Tip the following day, police were able to identify Chiu as the bank robber. He was subsequently arrested and the money was recovered.
Chiu is set for sentencing before Chief United States District Judge Ricardo H. Hinojosa on June 11, 2013. At that time, he faces as much as 20 years in prison, a maximum $250,000 fine.
He has been in custody since Nov. 17, 2012, and will remain in custody pending sentencing.
The FBI investigated the case along with the McAllen Police Department. Assistant U.S. Attorney Kristen J. Rees is prosecuting the case.
Corrales Man Sentenced to 97 Months in Prison for Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Ernest Brian Tucker, 59, of Corrales, N.M., was sentenced this morning to 97 months in prison followed by 15 years of supervised release for his child pornography conviction. Tucker will be required to register as a sex offender when he completes his prison sentence. Tucker’s sentence was announced by U.S. Attorney Kenneth J. Gonzales and Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigation (HSI) in El Paso, Texas.
Tucker has been in federal custody since his arrest on March 7, 2012, on a criminal complaint charging him with child pornography offenses. Tucker subsequently was indicted and charged with three counts of receipt of a visual depiction of minors engaged in sexually explicit conduct and two counts of possession of a visual depiction of minors engaged in sexually explicit conduct. On Nov. 8, 2012, Tucker pled guilty to Count 2 of the indictment, a receipt of child pornography charge.
According to court filings, on March 7, 2012, the New Mexico Internet Crimes Against Children (ICAC) Task Force executed a search warrant at Tucker’s residence and seized computers and computer-related media. The search warrant was based on an undercover investigation initiated in Jan. 2012 by the New Mexico State Police aimed at identifying those who possess, receive and distribute child pornography. The search warrant was obtained after the investigation revealed that an IP Address subscribed to Tucker's residence was participating in the distribution of child pornography.
In entering his guilty plea, Tucker admitted that, while the search warrant was executed, he voluntarily participated in a recorded interview with ICAC Task Force officers during which he admitted that he used a file-sharing program to down-load child pornography. Tucker also acknowledged that an examination of his computer and computer-related media revealed approximately 38,000 images and videos consistent with child pornography, including more than 2,700 images and videos of numerous children who have been identified as child pornography victims and have been rescued.
Assistant U.S. Attorney Charlyn E. Rees prosecuted the case, which was investigated by Homeland Security Investigations, the New Mexico State Police, the New Mexico ICAC Task Force and the New Mexico Regional Computer Forensic Lab.
Tucker was charged as part of Operation Artemis, an investigative effort by federal, state and local law enforcement affiliates of the New Mexico ICAC Task Force aimed at identifying individuals throughout New Mexico involved in the distribution, receipt, and possession of child pornography through peer-to-peer file sharing programs. In March 2012, federal, state and local law enforcement officers executed thirteen unrelated federal and state search warrants at residences throughout New Mexico, and seized computers and computer-related evidence related to child pornography offenses. To date, ten individuals have been arrested for violating federal and state child pornography laws based on the search warrants executed as part of Operation Artemis. The law enforcement agencies that participated in Operation Artemis include: Homeland Security Investigations, NMSP, New Mexico Attorney General’s Office, FBI, Albuquerque Police Department, Los Lunas Police Department, Santa Fe Police Department, Rio Rancho Police Department, and the New Mexico Regional Computer Forensic Lab.
Operation Artemis was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The Operation also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Corpus Christi Radiologist Group and Children’s Genetic Services Clinic Settle False Claims Act AllegationsRead the Press Release
HOUSTON – Children’s Physician Services of South Texas (CPSST) and Radiology Associates have agreed to pay to settle claims they violated the False Claims Act and the Texas Medicaid Fraud Prevention Act between 2002 and 2007, United States Attorney Kenneth Magidson announced today. CPSST, a part of the Driscoll Health System, has agreed to pay $1.5 million, while Radiology Associates, an independent physician group serving the Driscoll Health System, will pay $800,000 to settle claims they billed and received payment twice for the professional reading and interpretation of genetic ultrasounds.
“Improper double billing by health care providers defrauds the government funded health care programs, adds to the government’s deficit and, most importantly, reduces the funds available to meet the patients’ medical needs,” said Magidson. “In addition to yielding a substantial recovery for taxpayers, this settlement should serve notice to health care providers that taxpayers will not tolerate, much less accept, paying twice for services rendered to them.”
The settlement announced today involved allegations that CPSST billed and received payment for Radiology Associates’ professional services and, without disclosing the payments, directed Radiology Associates to bill and receive payment for the same professional services.
There are two components for each ultrasound, a technical component and a professional component. The technical component refers to the actual taking of the ultrasound by a technician and the professional component refers to the reading and interpretation of the ultrasound images by a physician, usually a radiologist. CPSST made arrangements to have Radiology Associates read and interpret the ultrasounds taken at CPSST. From Jan. 1, 2002, to June 1, 2007, Radiology Associates read and interpreted several thousand ultrasounds for CPSST. The understanding between the two providers was that CPSST would bill and receive payment solely for the technical component and Radiology Associates would bill and receive payment solely for the professional component. In reality, CPSST billed and received payment for both the technical and professional components without informing or disclosing this fact to Radiology Associates. Upon discovery of this fact, Radiology Associates informed CPSST about the double billing for the professional component, but CPSST denied billing for the professional component except for a few accidental and isolated occasions. Instead, CPSST instructed and directed Radiology Associates to continue to bill for the professional component and reaffirmed that CPSST would only bill for the technical component. Despite additional evidence of double billing, Radiology Associates ignored the evidence, accepted CPSST’s misrepresentations without question and continued to bill and receive payment for the professional component.
Government funded health care programs such as Medicare, Medicaid, TRICARE and the Federal Employees Health Benefits program agree to pay enrolled health care providers once for the technical and professional components of each ultrasound performed on a patient covered by theses health care programs. Health care providers enrolled and servicing patients covered by these government funded health care programs are prohibited from billing and receiving payment twice for the ultrasound’s technical or professional component.
The settlement resolves allegations made against Radiology Associates, Children’s Physician Services of South Texas, Center for Genetic Services, and Raymond C. Lewandowski Jr. M.D. in a qui tam or whistleblower lawsuit filed in 2008 by a former revenue manager and coding compliance officer with Radiology Associates. Under the False Claims Act, private citizens can bring suit on behalf of the government and share in any amounts that are obtained through that legal action. In this case, the share will be between 15 - 25% of the proceeds of the overall settlement.
The investigation was conducted by the United States Department of Health and Human Services - Office of Inspector General and the State of Texas Attorney General’s Office - Medicaid Fraud Control Unit (MFCU) and Civil Medicaid Fraud Division. Assistant United States Attorney Jose Vela Jr., Assistant Attorney General of Texas Christen Nedwick and MFCU Investigative Auditor Clint Lawhon led the investigation.
Cincinnati Man Sentenced to 199 Months in Prison for Carjacking, Illegal Use and Possession of A FirearmRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Bennie Overton, 34, of Cincinnati was sentenced in U.S .District Court to 115 months in prison for carjacking and illegal possession of a handgun and an additional 84 months for using a firearm in a crime of violence for a total sentence of 199 months.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Stephanie R. Shoemaker, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Cincinnati Police Chief James Craig and Silverton Police Chief Bruce M. Molett announced the sentence imposed today by U.S. District Judge Michael Barrett.
According to court documents, Overton approached a man in a parked car on April 29, 2012 and distracted the man by asking to borrow the car’s cigarette lighter. While the man’s head was turned, Overton pulled a firearm, placed it next to the victim’s head and forced the victim to move over into the passenger seat. The victim jumped out of the car and Overton sped away.
On May 4, 2012, Cincinnati Police found Overton passed out in the victim’s car. A firearm was found on the seat between Overton’s legs. A search of Overton’s apartment recovered a large quantity of ammunition, two revolvers, a loaded assault rifle, a shotgun and another long rifle. Overton had prior convictions as a felon and under federal law, felons are prohibited from owning or possessing firearms.
Overton pleaded guilty on August 13, 2012 to being a felon in possession. Two days later, a jury convicted Overton on the other two counts. He has been in custody since he was convicted.
“Overton, a convicted felon, knew that he was prohibited from possessing firearms and/or ammunition yet did so anyway, showing a blatant disregard for the law,” Cincinnati Branch Chief Anthony Springer wrote in a sentencing memorandum filed with the court.
U.S. Attorney Stewart commended the cooperative investigation by the ATF, CPD and Silverton Police, as well as Cincinnati Branch Chief Springer and Special Assistant U.S. Attorney Jennifer Deering with Hamilton County Prosecutor Joseph T. Deters’ office who represented the United States in the case.
Che Brown Sentenced to Three Months in Prison for Bank Fraud, Used False Documents to Modify His Mortgage-Claimed Income That He Didn’t Actually Receive-Read the Press Release
WASHINGTON – Che M. Brown, 45, of Washington, D.C., was sentenced today to three months of incarceration on a federal charge of bank fraud stemming from a scheme in which he submitted false documents to a mortgage lending service to win approval of a modification on a mortgage for his residence.
The sentence was announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI).
Brown pled guilty in December 2012 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Amy Berman Jackson. Upon completion of his prison term, Brown will be placed on five years of supervised release. During that time, the judge ordered that Brown perform 200 hours of community service.
According to a statement of offense signed by the government as well as the defendant, Brown fell several months behind on his monthly mortgage in 2009. GMAC Mortgage LLC, a mortgage lending and servicing business, informed him that the mortgage was in default. GMAC also sent a letter to Brown in June 2009 that advised him that he should consider whether he was eligible for a loan modification that would make his monthly mortgage payment more affordable.
From September 2009 through September 2010, Brown schemed to defraud GMAC by submitting documents that made it appear that he had received $35,000 in income that he, in fact, had never received. Based on those and other representations, Brown was deemed qualified for the mortgage modification, which ultimately reduced his payments by $717.44 a month, to $1,499.
This marked the second time that Brown has been convicted of bank fraud. In 1995, he was convicted in the U.S. District Court for the District of Columbia of conspiracy to commit bank fraud in a scheme involving credit cards that resulted in $58,500 in losses.
The current prosecution arose from a broader investigation into the campaign activities of Brown’s brother, Kwame R. Brown, the former chairman of the Council of the District of Columbia. That investigation also led to the conviction of Kwame Brown in another bank fraud matter. Kwame Brown pled guilty in June 2012 to a federal charge of bank fraud stemming from false documents that he used to secure a $166,000 home equity loan, as well as a $55,335 loan that he used to purchase a boat. The Honorable Richard J. Leon sentenced Kwame Brown in November 2012 to a day in confinement and six months of home detention. Following the period of home detention, Kwame Brown will be placed on two years of supervised release; during that time, Judge Leon ordered that he perform 480 hours of community service.
The cases were investigated by the FBI’s Washington Field Office and the Washington Field Office of IRS-Criminal Investigation.
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge Parlave and Special Agent in Charge Kelly commended those who investigated the case for the FBI and IRS-CI. They also acknowledged the efforts of those who prosecuted the case, including Assistant U.S. Attorneys David S. Johnson, Maia L. Miller, Matt Graves, and Ellen Chubin Epstein, and former Assistant U.S. Attorney Daniel Butler, of the Fraud and Public Corruption Section of the U.S. Attorney’s Office, and Assistant U.S. Attorney Anthony Saler, of the Office’s Asset Forfeiture and Money Laundering Section.
Finally, they expressed appreciation to Forensic Accountant Crystal Boodoo; Paralegal Specialists Diane Hayes, Lenisse Edloe, Krishawn Graham, Tasha Harris, Shanna Hays, Christopher Samson, and Nicole Wattelet; former Paralegal Specialist Sarah Reis; former Legal Assistant Jared Forney; Criminal Investigators Matthew Kutz and Duncan Templeton; Litigation Support Services Specialist Thomas Royal; Information Technology Specialist Kimberly Austin; Victim-Witness Coordinator Dawn Tolson-Hightower; former Student Law Clerks Carl Barnes, Iris Postelnicu, and Danielle Rosborough, and Intelligence Specialist Lawrence Grasso, all of the U.S. Attorney’s Office for the District of Columbia.
13-083Career Offender Sentenced to 14 Years in Sex Trafficking CaseRead the Press Release
PORTLAND, Ore. – Dwayne Jamal Hubbard, 24, of Portland, Oregon, was sentenced today by U. S. District Judge Anna J. Brown to 168 months in prison, to be followed by a five-year term of supervised release. The federal charges were filed in May 2012 after an investigation led by the FBI’s Child Exploitation Task Force working in conjunction with the Tigard Police Department. On December 10, 2012, Hubbard pled guilty to sex trafficking of a minor, which carries a mandatory minimum of ten years in prison and a maximum of life imprisonment.
Today at his sentencing, the Court found Hubbard qualified as a career offender based on his prior felony convictions, and this status subjected him to enhanced penalties. According to prosecutors, Hubbard met a 17-year-old female online, arranged a meeting, and immediately started encouraging her to engage in commercial sex acts by posting sexual advertisements on Backpage.com. Within days of meeting, defendant took sexually suggestive photographs of her, created online advertisements, and began sending her out to engage in sex acts with strangers in exchange for money. Hubbard continuously pestered her through text messages asking her if she could make him some money.
“This defendant believed being a pimp and selling young women for sex was a low-cost way to earn significant financial benefit,” said U.S. Attorney Amanda Marshall. “My office is committed to changing the cost side of the analysis – if you get caught sex trafficking in this District, we will work with our law enforcement partners to arrest you and seek the kind of stiff penalties that Congress envisioned for this crime.”
In crafting an appropriate sentence, Judge Brown noted the horrific nature of the offense and addressed the negative impact it has in our community. Because Hubbard agreed to accept responsibility for his crime and resolve his case early, the government recommended some downward variance to his guideline range to reach a 14-year sentence. The Court agreed that by resolving early, defendant prevented further harm to the victim that can only be compounded by protracted litigation.
The case was prosecuted by Assistant U.S. Attorney Leah K. Bolstad.
California Man Pleads Guilty to Unlawful Possession of FirearmRead the Press Release
COEUR D’ALENE – Donald Paul Hankey, 28, of San Jose, California, pleaded guilty today to an indictment charging him with one count of felon in possession of a firearm, U.S. Attorney Wendy J. Olson announced. Hankey appeared before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene.
According to the indictment, on November 13, 2012, Hankey knowingly and illegally possessed a Springfield Armory 9 millimeter handgun. Hankey is prohibited from possessing firearms due to a previous felony conviction for possessing a controlled substance. The government is seeking forfeiture of the firearm.
The charge of felon in possession of a firearm is punishable by up to ten years in a prison, a maximum fine of $250,000, and up to three years of supervised release.
Hankey is scheduled to be sentenced on June 24, 2013, at the federal courthouse in Coeur d’Alene.
The case was investigated by the North Idaho Violent Crimes Task Force (NIVCTF). The NIVCTF members include the Federal Bureau of Investigation, the Idaho State Police, Kootenai County Sheriff's Office, Shoshone County Sheriff's Office, Bonner County Sheriff's Office, Coeur d'Alene Police Department, Post Falls Police Department, and the Coeur d'Alene Tribal Police Department. The NIVCTF investigates a myriad of violent crimes, including armed robbery, kidnapping, felonious assault and drug trafficking.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Brothers and Hit-Man Convicted of RICO and Murder Conspiracies Involving Little Village False Identification Document RingRead the Press Release
CHICAGO — Three defendants are facing mandatory life imprisonment after a federal jury found them guilty of racketeering conspiracy, murder in aid of racketeering, and related crimes after a six-week trial in U.S. District Court. Two brothers, JULIO and MANUEL LEIJASANCHEZ, who operated a lucrative, black-market counterfeit identification document business in Chicago’s Little Village community for at least 15 years, were convicted along with GERARDO SALAZAR-RODRIGUEZ, who they directed to commit an execution-style murder in Mexico of a fledgling competitor. The murder plot was intended to prevent two former employees from starting a competing business and to maintain control over employees of their operation, which generated annual revenues of approximately $3 million.
Evidence at trial showed that Salazar-Rodriguez fired more than a dozen shots in killing one of the victims in his taxi cab near Mexico City in April 2007, and the jury heard transcripts of intercepted telephone conversations in which he boasted to the brothers after the murder. He also hunted for a second victim who he believed was in Mexico at the time but who was actually in federal custody in Chicago. That intended victim, who pleaded guilty to fraudulent identification document charges, cooperated and testified as a government witness at trial.
After the jury returned guilty verdicts on all counts yesterday afternoon, the trial ended today when the jury returned special findings regarding the murder that raised the maximum penalty for racketeering conspiracy to life in prison. The murder in aid of racketeering conviction carries a mandatory life sentence for all three defendants. U.S. District Judge Rebecca Pallmeyer scheduled sentencing for Sept. 12.
“This violent conspiracy went to great lengths to corner the fake document market in Chicago, going so far as to murder a rival vendor in order to protect their lucrative turf,” said Gary Hartwig, Special Agent-in-Charge of HSI in Chicago. “The guilty verdicts clearly demonstrate our unyielding resolve to dismantle the criminal organizations that perpetuate and profit from document fraud within our borders.”
The trial and convictions stem from Operation Paper Tiger, an investigation conducted by Homeland Security Investigations agents, along with other local, state, and federal law enforcement agencies. In April 2007, the investigation resulted in charges against 24 defendants and the dismantling of the Leija-Sanchez fraudulent document organization that operated in and around the Little Village Discount Mall at West 26th and Albany in Chicago. Except for the three trial defendants and three fugitives, all of the remaining defendants were convicted.
Manuel Leija-Sanchez, 45, and Salazar-Rodriguez, 40, were arrested later in Mexico and were extradited to the United States in 2010 and 2011 to stand trial, together with Julio Leija- Sanchez, 37, who was arrested in Chicago in 2007. A third Leija-Sanchez brother, Pedro, 40, was also arrested in Mexico and extradited to the U.S in 2011. He pleaded guilty last August to racketeering conspiracy for operating the fraudulent ID ring with his brothers and is awaiting imposition of an agreed sentence of 20 years in prison, currently scheduled for March 13.
Evidence at trial showed that the three Leija-Sanchez brothers operated the bustling illegal business between 1993 and 2007. The Mexico-based organization was supervised by an overall leader living in Chicago, and the leadership position rotated among the Leija-Sanchez brothers. The organization sold as many as 100 sets of fraudulent identification documents each day, charging customers approximately $200 per “set,” consisting of a Social Security card and either an immigration “green card” or a state driver’s license.
Manuel and Julio Leija-Sanchez and Salazar-Rodriguez conspired to murder Guillermo Jimenez-Flores, also known as “Montes,” a former member of their organization who became a fledgling rival and was shot to death by Salazar-Rodriguez in Mexico in April 2007. The three trial defendants also were convicted of conspiracy to kill a second victim, Bruno Freddy Ramirez-Camela, who they believed was in Mexico but was actually incarcerated in Chicago.
The convictions were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois. He commended the years of hard work by HSI agents, who were joined in the investigation by the Chicago and Galveston, Tex., police departments and the Chicago offices of the U.S. Secret Service, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Government of Mexico and Mexican law enforcement partners also provided significant assistance.
The government is being represented by Assistant U.S. Attorneys Michelle Nasser, Andrew Porter and William Ridgway.
Bosnian Woman Charged with Naturalization FraudRead the Press Release
A grand jury returned a two-count indictment charging Divna Maslenjak, 50, with naturalization fraud and misuse of evidence of naturalization, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Maslenjak, while a citizen of Bosnia Herzegovina, made material false statements in her application and interview for naturalization by failing to acknowledge she had lied to government officials when applying for her refugee status.
The indictment further alleges that Maslenjak used her unlawfully obtained naturalization as a basis for assisting her husband in securing his lawful permanent resident status based upon their marriage.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorneys Phillip J. Tripi and Margaret Sweeney, following investigation by agents of the U.S. Immigration and Customs Enforcement.
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.
Belleview Man Sentenced to Four Years in Federal Prison for Possession of Child PornographyRead the Press Release
Ocala, FL - U.S. District Judge Charlene Edwards Honeywell today sentenced Ronald E. Slauson (73, Belleview) to 4 years in federal prison, followed by ten years of supervised release, for possession of child pornography. The court also ordered Slauson to forfeit computers and computer items relating to such criminal activity. Slauson pleaded guilty on November 12, 2012.
According to court documents, on May 8, 2012, a special agent with U.S. Immigration and Customs Enforcement's Homeland Security Investigations was conducting an online investigation into the possession of child pornography. The agent identified an Internet Protocol (IP) address that was being used for sharing videos and images of suspected child pornography. During the investigation, the agent was able to determine that the internet subscriber was Ronald Slauson. On September 7, 2012, a federal search warrant was executed at Slauson's Belleview residence, and computers and computer storage items were seized. Subsequent computer forensic examinations revealed that Slauson was in possession of approximately 1,498 videos approximately 2,860 images 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 Sam Armstrong.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Baltimore Felon Exiled to over 11 Years in Prison for Drug TraffickingRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Jermaine Miller, age 29, of Baltimore, today to 134 months in prison followed by three years of supervised release for possession with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to his plea agreement, on June 7, 2010 Baltimore police officers saw Miller exit an alley from the 1800 block of Rutland Avenue, Baltimore. When Miller saw the police officers, he popped an object into his mouth. The police officers ordered Miller to spit out the object, which was found to be a gel cap containing heroin. Miller was arrested and four additional gel caps containing heroin were seized from Miller. A search warrant was executed at Miller’s residence and police seized a plastic baggie containing nine individual baggies of cocaine along with a .357 revolver and ammunition.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorneys Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Debra L. Dwyer, who prosecuted the case.
Architect of Fraudulent Gold Futures Trading Investment Scheme Sentenced to Nearly Ten Years in Federal PrisonRead the Press Release
Tampa, Florida - U.S. District Judge James D. Whittemore sentenced Terry Vernon Koontz (56, Apollo Beach) yesterday to 9 years and 7 months in federal prison for conspiracy to commit mail fraud and wire fraud. The court also ordered the forfeiture of a $50,000 cashier's check, which is traceable to proceeds of the fraud scheme, and a money judgment in the amount of $3,771,701.88, the proceeds of the fraud scheme.
According to court documents, from about December 2010, through November 2011, Koontz and a co-conspirator developed a plan to use false and fraudulent representations, pretenses and promises to solicit victim-investors to wire funds into bank accounts which they controlled. The accounts were for investment in a purported gold futures investment program supposedly run by an existing New York-based investment firm called Paulson & Co., Inc. To facilitate the scheme, conspirators utilized an unincorporated Florida entity (CK&K), in Tampa. Koontz was the primary architect of the fraud scheme.
In late January 2011, conspirators opened a bank account in the name of CK & K to be used to receive victim-investors’ funds. During the same time frame, Koontz and co-conspirators began soliciting prospective victim-investors to invest in the purported gold futures investment program. Once convinced to participate, Koontz or co-conspirators directed the victim-investor to transmit his or her funds, via wire and other means, to the CK & K account.
In an effort to enhance the appearance of the fraudulent investment program, Koontz created false and fraudulent documents, including promissory notes and assignments of collateral, which supposedly evidenced and guaranteed the victim-investors’ participation in the investment program. In preparing these documents, Koontz used the names and signatures of various existing foreign and/or domestic entities, without such entities’ and individuals’ knowledge or consent. The promissory notes also guaranteed a rate of return, usually ranging between three and six percent, each month. After a victim-investor wired his or her investment funds, Koontz and/or co-conspirators caused a false and fraudulent promissory note and assignment of collateral to be sent, via FedEx, from either Tampa or Ft. Myers, to the victim-investor. Most of the victim-investors resided outside of Florida.
As the fraudulent investment program grew, Koontz and co-conspirators organized and hosted live presentations, conducted via conference call, to solicit more prospective victim-investors. Some of the presentations were recorded for later access by other prospects. At times, Koontz falsely posed as a satisfied investor and gave a testimonial touting the success of the fraudulent investment program. He also portrayed himself as a close personal friend and professional associate of the founder of the existing New York-based investment firm Paulson & Co., Inc., to persuade the prospective victim-investor to participate in the purported gold futures investment program.
Koontz and co-conspirators used the victim-investors’ funds to perpetuate the fraud scheme and for the personal enrichment of themselves, their family members, and friends. Specifically, they purchased motor vehicles, real property, home furnishings, jewelry, and other goods and services. Funds invested by later victim-investors were used to make interest payments to earlier victim-investors in order to make it appear that the investment program was performing as represented. Other such funds were used to pay expenses associated with operating the fraud scheme, including, but not limited to, office rents, wire transfer fees, and FedEx fees.
On January 30, 2013, U.S. District Judge Susan C. Bucklew sentenced co-conspirators John Henley Fowler (64, Ft. Myers) to 70 months in federal prison for conspiracy to commit mail fraud and wire fraud, and Jeffrey Robert Fowler (35, Ft. Myers) to 37 months in federal prison on a similar charge. The court also ordered the Fowlers to forfeit bank accounts, vehicles, real property, computer equipment, a big screen television, iPad and iPhone, which are traceable to proceeds of the fraud scheme, and the court entered a money judgment in the amount of $3,771,701.88, the proceeds of the fraud scheme.
This case was investigated by the Federal Bureau of Investigation and the United States Secret Service. It was prosecuted by Assistant United States Attorney Rachelle DesVaux Bedke.
83 Individuals Indicted for Drug Trafficking in the Municipality of San JuanRead the Press Release
SAN JUAN, PR – On March 1st, 2012, a federal grand jury returned two separate indictments against 83 individuals as a result of two investigations led by the Drug Enforcement Administration (DEA) and the Puerto Rico Police Department (PRPD), announced today United States Attorney Rosa Emilia Rodríguez-Vélez.
According to the first indictment, 41 defendants are charged with conspiracy to possess with intent to distribute “crack” (cocaine base,) heroin, cocaine, marihuana, Oxycodone (commonly known as Percocet) and Alprazolam (commonly known as Xanax). The object of the conspiracy was to distribute controlled substances at the Dr. López Sicardó Public Housing Project and other areas nearby and within the Municipality of San Juan, Puerto Rico, for significant financial gain. The main leader of the organization was Gregorio Cardenas-Marquez, (aka “Tio”, “Gre”), who directly controlled the drug trafficking activities. Cardenas- Marquez also purchased and transported wholesale amounts of narcotics that were delivered to co-conspirators for further distribution at the drug points.
The 41 co-conspirators had many roles, in order to further the goals of the conspiracy, including: one leader, six drug point owners (including the leader), one supplier, two enforcers, four runners, 25 sellers and three facilitators.
It was further part of the manner and means of the conspiracy that a co-conspirator prepared and possessed a list of the rules that were to be followed at all times by the members of the drug trafficking organization. The rules included the following: shifts were not to be changed without authorization; those who were not scheduled to work should not show up at the drug point; look-outs had to be paid for their work; all members should have a scanner; a maximum of two “materials” (narcotics) should be distributed at each drug point; customers should be allowed to request what narcotics they want to purchase, without taking money from their hands; and members of the organization were not allowed to fight against each other.
It was further a part of the manner and means of the conspiracy that during the course of the conspiracy, basketball games were organized by the co-conspirators in which the teams of various drug points were identified by the same color used to label the drugs or “material” that they worked with or owned. In addition, the members of the drug trafficking organization would possess, carry, use, brandish and/or use firearms in order to protect themselves and their drug trafficking business. Ten members of the drug trafficking organization are facing one count for using and carrying firearms during and in relation to a drug trafficking crime.
The second indictment charges 42 defendants with conspiracy to possess with intent to distribute “crack” (cocaine base,) heroin, cocaine, marihuana, Oxycodone (commonly known as Percocet) and Alprazolam (commonly known as Xanax). The object of the conspiracy was to distribute controlled substances at the Los Peña Public Housing Project and other areas nearby and within the Municipality of San Juan, Puerto Rico, for significant financial gain. The main leader of the organization was Evelio Rosario-Rosado, aka “Casper”, “Cuquito”, “Cuqui”, “El Boss”.
The 42 co-conspirators had many roles, in order to further the goals of the conspiracy, including: one leader, four drug point owners (including the leader), four runners, 29 sellers and five facilitators. Eight members of the drug trafficking organization are facing one count for using and carrying firearms during and in relation to a drug trafficking crime.
Both drug trafficking organizations face a narcotics forfeiture allegation of 10 million dollars.
“The criminal activity laid out in these indictments is extensive, however, our commitment to continue our fight against these offenders is unwavering,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “This extensive investigation has taken dangerous drug traffickers off our streets, and they will face justice for their crimes.”
“Today’s arrests stand as a warning to those individuals whose greed drives them to pollute our streets and schools with poisonous contraband. Our message to drug vendors is – deal at your own risk. We are going to find you and you are going pay a severe and certain penalty in federal court,” said Pedro Janer, DEA Acting Special Agent in Charge for the Caribbean Division.
This case is being prosecuted by Assistant United States Attorney Teresa Zapata-Valladares.
If convicted, the defendants face a minimum of ten (10) years imprisonment and a maximum of life imprisonment, with fines of up to $10 million. Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
4 March 2013
Wounded Knee Man Indicted for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wounded Knee, South Dakota man has been indicted by a federal grand jury for allegedly using a hard object to cause serious bodily injury to a female at Wounded Knee on December 28, 2012.
Lyle Sutton, Jr., age 26, was indicted by a federal grand jury on February 20, 2013 for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury. Sutton appeared before U.S. Magistrate Judge Veronica L. Duffy on February 26, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction for each charge is 10 years of imprisonment and a $250,000 fine. The charges are merely accusations and Sutton is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorneys Wayne Venhuizen and Sarah Collins are prosecuting the case.
Sutton was remanded to the custody of the U.S. Marshal. A trial date has been set for May 7, 2013.
Two Sentenced for Trafficking Counterfeit GoodsRead the Press Release
United States Attorney Brendan V. Johnson announced that two people from Rapid City, South Dakota convicted of Trafficking in Counterfeit Goods and Services were sentenced on February 22, 2013 by Chief U.S. District Judge Jeffrey L. Viken.
Ravaye Meltzer, age 34, and Bar Braver, age 29, were both sentenced to 1 year of probation, ordered to pay $100 to the Victim Assistance Fund, and forfeited their rights in approximately $300,000 in bank accounts and goods.
Between February 2010 and August 2011, Meltzer and Braver intentionally sold counterfeit goods near Rapid City, Keystone, Deadwood, Hill City, and Sturgis. The sale of the counterfeit goods violated the trademarks held by Monster Energy, Angry Birds, Hollister, The North Face, and Ed Hardy.
This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Two Pill Dealers Sentenced to Federal Prison for Oxycodone Distribution ConspiracyRead the Press Release
Defendants brought thousands of pills from Detroit and distributed them in Huntington
HUNTINGTON, W.Va. – U.S. Attorney Booth Goodwin today announced that two pill dealers were sentenced to a total of more than eleven years in federal prison for selling prescription painkillers. Joseph Dre Moore, also known as “Tay,” 33, of Huntington, was sentenced to seven years and three months in prison. Moore admitted that beginning in late summer 2009, he was involved in an illegal pill distribution scheme in and around Huntington, W.Va. Moore admitted that during the scheme, he obtained pills from Detroit, Michigan or from individuals with ties to sources in Detroit. Moore further admitted that on September 22, 2009, he directed a known individual to distribute nine 80-milligram oxycodone tablets to a confidential informant working for the Huntington Violent Crimes and Drug Task Force. The transaction occurred near 14th Street and Adams Avenue in Huntington. Moore also admitted that in December 2009, he began using a Huntington residence to store and distribute controlled substances including marijuana, crack cocaine, and oxycodone. Moore admitted that he sold approximately 30 80-milligram oxycodone tablets per month for at least two months.
In a separate hearing today, Moore’s co-defendant Rita Evette Johnson, 33, of Detroit, was sentenced to three years and ten months in prison. Johnson admitted that she became involved in the illegal pill conspiracy during the spring of 2011. Johnson admitted that she typically obtained pills from Detroit and shipped them to co-defendant Moore in Huntington. Johnson further admitted that in the spring of 2011, she arranged for approximately 2,700 30-milligram oxycodone tablets to be sent to co-defendant Moore. Johnson also admitted that she recruited an individual to carry 600 30-milligram oxycodone tablets and 90 40-milligram oxycodone tablets by commercial bus from Detroit to co-defendant Moore in Huntington. Moore also admitted his participation in the pill drop-off scheme.
The Huntington Violent Crimes and Drug Task Force conducted the investigation. Assistant United States Attorney Joshua Hanks handled the prosecutions. The sentences were imposed by United States District Chief Judge Robert C. Chambers.
The cases were prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Two Leaders of the Newburgh Latin Kings Found Guilty in White Plains Federal Court of Three Murders, Racketeering, Drug, Firearms, and Witness Tampering ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that WILSON PAGAN, a/k/a “King Gunz,” and CHRISTIAN SANCHEZ, a/k/a “King Chi Chi,” leaders of the Latin Kings gang in Newburgh, New York (the “Newburgh Latin Kings”), were found guilty today before U.S. District Judge Cathy Seibel in White Plains federal court of 29 counts, including murder, racketeering, drug, firearms, and witness tampering charges, after a six-week jury trial. Judge Seibel set July 11, 2013 for sentencing, at which time PAGAN and SANCHEZ will both face mandatory terms of life in prison.
PAGAN and SANCHEZ are two of 35 members and associates of the Newburgh Latin Kings originally indicted in connection with the case, all of whom have been convicted. Among other charges, PAGAN was found guilty of the May 6, 2008 murder of Jeffrey Zachary, and SANCHEZ was found guilty of the March 11, 2010 murder of Jerome Scarlett, a/k/a “Rudeboy,” and the murder of John Maldonado, a/k/a “Tarzan,” less than 24 hours later, on March 12, 2010.
“U.S. Attorney Preet Bharara stated: For far too long, the residents of Newburgh were plagued by lethal violence and narcotics trafficking at the hands of these two defendants and their cronies, and in just nine hours, the jury unanimously found them guilty of a catalogue of crimes, including the tragic murder of an innocent 15-year-old boy who was in the wrong place at the wrong time. Their reign of terror is now over for good and everyone can breathe easier as a result. Today’s guilty verdicts are the latest example of how we are making good on our promise to eradicate the scourge of gangs and to give neighborhoods back to their residents, and together with our federal, state, and local law enforcement partners, we will continue our fight.”
According to the evidence at trial before Judge Seibel:
Between 2007 and 2011, the Newburgh Latin Kings and their trusted associates sold crack cocaine, heroin, powder cocaine, and marijuana at drug spots in Newburgh, including the areas of Benkard Avenue and William Street, and South Miller Street and Broadway. Gang members and associates protected the gang’s drug turf, drugs, and drug money, with guns and violence. The violence included frequent shootings, stabbings, and assaults of rival drug dealers, including members of another gang in Newburgh known as the Bloods, as well as witnesses and suspected Government witnesses within their own gang.
The Newburgh Latin Kings were governed by a council of five officers, who were referred to as crowns (collectively, the “Crown Council”). PAGAN and SANCHEZ each served as the First Crown, and overall head of the Newburgh Latin Kings -- PAGAN from 2008 through January 2010 and SANCHEZ from February 2010 through February 2011.
The Newburgh Latin Kings had regular chapter meetings at which attendance was mandatory and members were required to pay dues. At the meetings, members discussed their criminal activities and alleged transgressions of chapter rules. They also directed punishments, known as “violations,” against members who were determined to have committed transgressions. Furthermore, at the meetings the Newburgh Latin Kings discussed conflicts with other gangs. In some instances, the Crown Council used meetings to order attacks on individuals and rival gangs.
On May 6, 2008, two members of the Newburgh Latin Kings were ordered by PAGAN and another leader of the gang to shoot a member of the Bloods on Dubois Street in Newburgh. The members of the gang then drove to the vicinity of Dubois Street and shot at individuals they mistakenly believed were members of the Bloods, including Jeffrey Zachary, a 15-year old, who was shot and killed.
The Latin Kings violence continued after the Zachary murder, and included a violent altercation on November 1, 2008 when PAGAN ordered other members of the Latin Kings to bring a gun to South Miller Street in Newburgh, resulting in another member of the gang discharging a gun; the stabbing of a gang member, on orders from PAGAN, in January 2010; and the attempted stabbing of a gang member, who was believed cooperating with law enforcement, on orders from SANCHEZ in February 2010.
The violence culminated in March 2010 with the shooting deaths of Scarlett and Maldonado on back-to-back nights of bloodshed. SANCHEZ along with other leaders of the Newburgh Latin Kings ordered the murder of Maldonado. SANCHEZ spoke on the phone with other members of the gang at they walked Maldonado to the intersection of Benkard and Little Monument Street, where a shooter, recruited by gang members that same day, lay in wait to gun Maldonado down. After the shooting, the same leaders of the gang spoke to SANCHEZ on the phone as they stood over Maldonado, who lay dying in the street.
Finally, in September 2010, SANCHEZ shot another member of the gang during a violent confrontation over the leadership of the gang.
The investigation resulting in the prosecution of members and associates of the Newburgh Latin Kings was conducted by the Federal Bureau of Investigation’s (“FBI”) Hudson Valley Safe Streets Task Force, which combined the efforts of dozens of law enforcement officers from federal, state, and local agencies and departments, including agents and officers with the FBI, the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, the City of Newburgh Police Department, Immigration and Customs Enforcement’s Homeland Security Investigations, the Middletown Police Department, the Orange County Sheriff’s Office, the New York State Police, and the Town of Newburgh Police Department. Mr. Bharara thanked the member agencies of the Task Force for their work in the investigation.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Nicholas McQuaid, Benjamin Allee, and Abigail Kurland are in charge of the prosecution.
U.S. v. Wilson Pagan, et al. S20 Indictment
Two Grey Hills, N.M., Man Pleads Guilty to Federal Child Sexual Abuse ChargesRead the Press Release
ALBUQUERQUE – Erick McDonald, 21, an enrolled member of the Navajo Nation who resides in Two Grey Hills, N.M., entered a guilty plea this morning to abusive sexual contact charges under a plea agreement with the U.S. Attorney’s Office.
During his plea hearing, McDonald pled guilty to a two-count information charging him with abusive sexual contact with a six-year-old Indian child and a 12-year-old Indian child on Sept. 19, 2012. In entering his guilty plea, McDonald admitted that he intentionally touched the genitals and other body parts of the two victims to gratify his sexual desire. Court records reflect that McDonald’s unlawful conduct occurred in a residence on the Navajo Indian Reservation.
McDonald has been in federal custody since his arrest on Oct. 9, 2012, and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, McDonald faces a maximum penalty of three years of imprisonment for abusing the 12-year-old victim and six years of imprisonment for abusing the six-year-old victim. McDonald also will be required to register as a sex offender.
The case was investigated by the Albuquerque and the Farmington offices of the FBI and the Shiprock Division of the Navajo Nation Department of Public Safety. Assistant U.S. Attorney Novaline D. Wilson is prosecuting the case.
Three Philippine Nationals Convicted in Los Angeles of Importing Military Grade WeaponsRead the Press Release
Three Philippine nationals were convicted today in Los Angeles of illegally importing military grade weapons into the United States after being caught in a sting operation that was conducted in the Philippines, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Bill Lewis, Assistant Director in Charge of the FBI's Los Angeles Field Office.
Sergio Syjuco, 26, Cesar Ubaldo, 27, and Arjyl Revereza, 26, each of the Philippines, were convicted after a four-week trial by a federal jury in U.S. District Court in the Central District of California of conspiring to illegally import the weapons into the United States, and aiding and abetting the importation of those weapons. The defendants were charged in an indictment filed on Jan. 12, 2012.
According to the evidence presented at trial, the defendants conspired to sell high-powered military and assault weapons to a buyer interested in bringing weapons into the United States to arm drug dealers in Mexican drug cartels and Mexican Mafia gang members. In November 2010, Ubaldo met with a prospective weapons buyer, who was actually an undercover FBI agent, and offered to introduce the agent to suppliers of high-powered firearms. Ubaldo subsequently introduced the undercover agent to Syjuco, who supplied the weapons, and Revereza, who was a police officer in the Philippines Bureau of Customs who facilitated the movement of the illegal weapons through Philippines customs and eventually into the United States. The weapons supplied included a rocket propelled grenade launcher, a mortar launcher, an M203 single-shot grenade launcher and 12 Bushmaster machine guns, as well as explosives including mortars and grenades. The trial evidence demonstrated that the defendants also illegally imported into the United States the highest level military body armor.
The weapons, which were tracked and safeguarded by the FBI during their shipment, landed in Long Beach, Calif., on June 7, 2011, where they were seized by the FBI.
At sentencing, which is scheduled for June 10, 2013, each defendant faces a maximum potential penalty of five years in prison and a $250,000 fine for conspiracy to import weapons into the United States, as well as 20 years in prison and a $1,000,000 fine for causing the importation of all of the weapons, excluding the 12 fully automatic Bushmaster firearms. In addition, defendants Syjuco and Revereza face a maximum potential penalty of 20 years in prison and a $1,000,000 fine for causing the importation of all of the weapons in this case, and five years in prison and a $250,000 fine for causing the importation of the 12 fully automatic Bushmaster firearms in this case.
The investigation was conducted by agents and investigators of the FBI, the U.S. Secret Service and the Philippine National Bureau of Investigation. Deputy Chief Kim Dammers and Trial Attorney Margaret Vierbuchen of the Criminal Division’s Organized Crime and Gang Section prosecuted the case.
Three Individuals on Trial Plead Guilty, Admit Roles in Investment Fraud SchemesRead the Press Release
March 4, 2013David B. Fein, United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation, today announced that three individuals who had been on trial in Hartford federal court have pleaded guilty to various offenses stemming from two separate investment schemes.
On February 25, ROBERT RIVERNIDER, 47, of Wellington, Fla., pleaded guilty to two counts of conspiracy and 16 counts of wire fraud, and his sister, LORETTA SENECA, 50, of Boynton Beach, Fla., pleaded guilty to one count of conspiracy and one count of wire fraud. On March 1, ROBERT PONTE, 59, of Stonington, Conn., pleaded guilty to two counts of conspiracy, 14 counts of wire fraud and two counts of tax evasion. The trial before United States District Judge Robert N. Chatigny began on February 7.
“As the overwhelming evidence in this trial revealed, Rivernider and Ponte recruited individuals to invest their money by making false promises of guaranteed, high returns,” stated U.S. Attorney Fein. “Their investment program was nothing more than a Ponzi scheme, which left several investors in financial ruin. With the assistance of Ms. Seneca, these defendants also engaged in a real estate investment scheme that defrauded more individuals, as well as lending institutions. The U.S. Attorney’s Office is committed to working with the FBI, IRS-CI and our other law enforcement partners to root out financial schemes to protect the investing public.”
“The FBI conducted an extensive investigation into the various conspiracies orchestrated by the three defendants, conspiracies designed with no goal other than to enrich themselves at the expense of other individuals and banks alike,” stated FBI Special Agent in Charge Mertz. “Cases like this are only successful with the teamwork of our federal partners. The IRS was instrumental to this investigation, as was the United States Attorney’s Office, which was exceptional in presenting a case at trial that resulted in three guilty pleas before even concluding its case.”
According to court documents and the evidence disclosed during the trial, between approximately June 2005 and April 2008, RIVERNIDER and PONTE conspired to defraud several victim investors by misrepresenting that the investors’ monies would be invested in legitimate, high-return investments. As part of the conspiracy, RIVERNIDER and PONTE used the Internet and other means to market a debt payment program typically called “No More Bills” through The Hudson Group, an entity that PONTE established. With the “No More Bills” program, RIVERNIDER and PONTE sought victim investors to invest monies with them, funds that the victim investors typically would raise through home equity lines of credit, or would borrow from 401K plans.
RIVERNIDER and PONTE materially misrepresented that investors would receive a substantial investment return, typically a monthly repayment on the invested monies of approximately seven to ten percent of their initial investment; that the returns would continue for a period substantially longer than needed to recoup the initial investment and result in a return substantially greater than the initial investment; that the victim investors’ existing debts and home equity lines of credit, if taken out to fund the investment, would be repaid in full from investment returns, and that the victim investors’ monies were being invested offshore in legitimate high-return investments, including investments in foreign currency exchanges, hedge funds, or other high-yield ventures. Instead of investing the funds as promised, RIVERNIDER and PONTE used the funds to pay their and their extended families’ living expenses, as well as the preexisting debts of other investors.
Through this first scheme, investors lost at least $3 million.
In a second scheme, between approximately November 2006 and December 2007, RIVERNIDER, PONTE, and SENECA engaged in a real estate investment conspiracy that defrauded both lenders and individuals they recruited. As part of the scheme, RIVERNIDER, PONTE, and others recruited victim borrowers to take out financing to purchase various investment properties, primarily in Tennessee and Florida, with financing from victim lenders. RIVERNIDER and PONTE typically represented to borrowers that these properties would be passive investments and that PONTE and RIVERNIDER would be responsible for the details of the purchase, rental, maintenance and payment of the mortgages on the properties. The co-conspirators made false representations to the victim borrowers that RIVERNIDER and PONTE would arrange for the purchase of the properties by the borrowers at markedly discounted values. In fact, RIVERNIDER and PONTE frequently marked up the purchase price of the properties to the victim borrowers, often by as much as 25 percent, without disclosing the increase in the purchase price. RIVERNIDER, PONTE and others also falsely represented that the investment properties would return to the victim borrowers sufficient monies to cover the carrying costs, as well as reduce the borrowers’ other debt burden.
RIVERNIDER, PONTE, SENECA and others victimized lenders by making multiple false representations in loan applications and other documents provided to the victim lenders. SENECA, a trained mortgage broker, was actively involved in the real estate transactions, including organizing and gathering many of the materials needed by the victim lenders, gathering certain information from the victim borrowers, providing certain comparables based on properties brokered by RIVERNIDER to be used for purportedly independent appraisals, and a range of other background tasks necessary for the lenders to make the loans.
This scheme involved at least 100 properties, and the investigation has revealed that the victim lending institutions have suffered nearly $20 million in losses.
When they are sentenced, RIVERNIDER and PONTE face a maximum term of imprisonment of 20 years for conspiring on the first investment fraud scheme, and RIVERNIDER, PONTE and SENECA face a maximum term of imprisonment of 30 years for conspiring on the real estate investment scheme. The wire fraud charges also carry maximum terms of imprisonment of 20 or 30 years. In addition, the tax evasion counts against PONTE carry a maximum term of imprisonment of five years on each count.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant United States Attorneys John H. Durham and Christopher W. Schmeisser.
The Connecticut Securities, Commodities and Investor Fraud Task Force investigates matters relating to insider trading, market manipulation, Ponzi schemes, investor fraud, financial statement fraud, violations of the Foreign Corrupt Practices Act, and embezzlement. The Task Force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service – Criminal Investigation; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of Justice’s Criminal Division, Fraud Section and Antitrust Division; U.S. Securities and Exchange Commission (SEC); U.S. Commodity Futures Trading Commission (CFTC); Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Office of the Chief State’s Attorney; State of Connecticut Department of Banking; Greenwich Police Department and Stamford Police Department.
Citizens are encouraged to report any financial fraud schemes by calling, toll free, 855-236-9740, or by sending an email to [email protected].
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.
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U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Three Family Members and Associate Sentenced for Moundsville Pill RingRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA - Chief Judge John Preston Bailey sentenced four members of a Moundsville pill conspiracy last week, including three family members, in United States District Court in Wheeling.
United States Attorney William J. Ihlenfeld, II, announced that:
Two of the defendants who were brothers, Carl William Goddard Jr., age 49, and John Harvey Goddard Sr., age 47, both of Moundsville, were sentenced to 46 and 21 months respectively for their December pleas of guilty to “Conspiracy to Distribute Schedule II pills.” The other defendants were John Harvey Goddard Jr., age 26 of Moundsville, and Roy C. Crow, age 27, of New Martinsville, who received sentences of 15 and 21 months for their pleas to “Distribution of Oxycodone.” John Jr.’s federal sentence is not to start until he completes a state 1 -10 year sentence for parole violation. Each of the defendants are also subject to a 3 year term of supervised release after their release from prison.
The convictions are the result of part of a multi-agency investigation by the Marshall County Drug Task Force, the West Virginia State Police, and DEA into drug distribution from the Goddard’s residence in Moundsville. During the investigation 13 controlled buys of pills were made of oxycodone and morphine, the majority of which occurred from the residence, culminating in the execution of federal search warrants in October, 2012. Evidence from the investigation revealed the group was responsible for distributing at least 500 oxycodone pills.
As part of the pleas, the residence is being forfeited along with $2,280 in drug proceeds seized during the search warrant execution.
All 4 defendants were remanded to the United States Marshall’s custody. A trial remains set in June for the remaining defendant, another family member.
This case was prosecuted by Assistant United States Attorney John C. Parr.
The Executive Office for Immigration Review Swears in Two Immigration JudgesRead the Press Release
FALLS CHURCH, Va. – The Executive Office for Immigration Review (EOIR) today announced the investiture of two immigration judges. Deputy Chief Immigration Judge Michael C. McGoings presided over the investiture during a ceremony held at EOIR’s headquarters on March 1, 2013.
After a thorough application process, Attorney General Eric Holder appointed Craig A. Harlow and Sunita B. Mahtabfar to their new positions. “The efficient and timely adjudication of detained aliens’ cases are the highest priority for EOIR,” said McGoings. “The addition of Mr. Harlow and Ms. Mahtabfar to our immigration judge corps will allow us to better address our detained caseload.”
Biographical information follows.
Craig A. Harlow, Immigration Judge, Pearsall Immigration Court
Attorney General Eric Holder appointed Judge Harlow in February 2013. Judge Harlow received a bachelor of arts degree in 1989 from Lubbock Christian University in Lubbock, Texas, and a juris doctorate in 1992 from St. Mary’s University School of Law in San Antonio. From June 2012 to February 2013, he served as an assistant chief counsel, Office of Chief Counsel, U.S. Immigration and Customs Enforcement (ICE), Department of Homeland Security, in Dallas. From October 2010 to May 2012, Judge Harlow served as deputy chief counsel for ICE in Oakdale, La. From September 2007 to September 2010, he was the senior attorney for the New Orleans Office of Chief Counsel. From October 1992 to August 2007, Judge Harlow was an assistant chief counsel for ICE in Oakdale, entering on duty through the Attorney General’ s Honors Program. From May 1991 to August 1991, he was a summer law intern in the Oakdale Immigration Court. Judge Harlow is a member of the State Bar of Texas.
Sunita B. Mahtabfar, Immigration Judge, El Paso Service Processing Center
Attorney General Eric Holder appointed Judge Mahtabfar in February 2013. Judge Mahtabfar received a bachelor of arts degree in 1994 from the University of Texas at Austin in Austin, Texas, and a juris doctorate in 1998 from Thurgood Marshall School of Law in Houston. From November 2006 to February 2013, she served as an attorney in the Office of the Assistant Chief Counsel, U.S. Customs and Border Protection, Department of Homeland Security (DHS), in El Paso, Texas. From February 2003 to November 2006, she served as an asylum officer for U.S. Citizenship and Immigration Services, DHS, in Houston. From June 2000 to February 2003, Judge Mahtabfar served as a staff attorney for the Department of Public Safety in Houston. Judge Mahtabfar is a member of the State Bar of Texas.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Tarrant County Man Sentenced to 180 Months in Federal Prison for Transporting and Shipping Child PornographyRead the Press Release
DALLAS — Walter Eugene Rogers, 33, of Watauga, Texas, was sentenced this morning by U.S. District Judge David C. Godbey to 180 months in federal prison and a five-year term of supervised release, following his guilty plea in November 2012 to one count of transporting and shipping child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Rogers has been in custody since he was arrested in Georgia by officers with the Tallapoosa Police Department on a related charge outlined in a criminal complaint.
According to documents filed in the case, a special agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), conducting an undercover investigation to identify persons involved in the distribution of child pornography through the use of peer-to-peer file sharing networks, identified a particular computer that was sharing images of child pornography. The undercover agent downloaded some of the more than 384 files available for sharing that had names indicative of child pornography, and found that they did contain images of child pornography.
Based on the downloaded images, a warrant was executed at Rogers’ home in Watauga in November 2011 and agents seized a computer and related storage devices, as well as a bag of printed child pornography images. Rogers admitted that he had been downloading child pornography since the mid-1990's and that he is attracted to boys 9-12 years of age. Rogers also admitted that he had images and videos of sex acts, bondage and other sadistic acts involving children, and that he had downloaded child pornography just a few hours before agents arrived that day.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/ For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
ICE HSI investigated the case; Assistant U.S. Attorney Camille Sparks prosecuted.
Swiss Bank Sentenced in Manhattan Federal Court for Conspiring to Evade TaxesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Kathryn Keneally, the Assistant Attorney General for the Tax Division of the Department of Justice, announced that WEGELIN & CO. (“WEGELIN”), a Swiss private bank, was sentenced today and ordered to pay approximately $58 million to the United States for conspiring with U.S. taxpayers and others to hide approximately $1.5 billion in secret Swiss bank accounts, and the income generated in the accounts, from the Internal Revenue Service (the “IRS”). Together with the April 2012 forfeiture of more than $16.2 million from WEGELIN’s U.S. correspondent bank account, this amounts to a total recovery to the United States of approximately $74 million. WEGELIN pled guilty in January 2013 to one count of conspiracy to defraud the IRS, file false federal income tax returns, and evade federal income taxes before U.S. District Judge Jed S. Rakoff, who also imposed today’s sentence. This case represents the first time that a foreign bank has been indicted for facilitating tax evasion by U.S. taxpayers and the first guilty plea and sentencing of such a bank.
Manhattan U.S. Attorney Preet Bharara said: “Wegelin has now paid a steep price for aiding and abetting tax fraud that should be heeded by other banks, bankers, and advisers who engage in the same conduct. U.S. taxpayers with undeclared accounts – wherever those accounts may be – should know that their bank may be next, and they should pay what they owe the IRS before we come find them.”
Assistant Attorney General Keneally said: “When the IRS offered the opportunity to come into compliance through the Offshore Voluntary Disclosure Initiative, some people thought that they could beat the system by instead looking for banks that promised further concealment. We are following that money, and time is rapidly running out for taxpayers who think that they can still hide.”
According to the Superseding Indictment, the forfeiture Complaint filed against the funds in WEGELIN’s correspondent bank account, other court documents filed in the case, and statements made during the guilty plea and sentencing proceedings:
Founded in 1741, WEGELIN is Switzerland’s oldest bank. It provided private banking, asset management, and other services to clients around the world, including U.S. taxpayers living in the Southern District of New York. WEGELIN had no branches outside Switzerland, but it directly accessed the U.S. banking system through a correspondent bank account that it held at UBS AG (“UBS”) in Stamford, Connecticut. As of December 2010, WEGELIN had approximately $25 billion in assets under management.
From 2002 through 2011, WEGELIN conspired with various U.S. taxpayers and others, to hide from the IRS the existence of bank accounts held at WEGELIN, and the income generated in those secret accounts. WEGELIN carried out this scheme through client advisers and others.
In 2008 and 2009, WEGELIN opened and serviced dozens of new undeclared accounts for U.S. taxpayers in an effort to capture clients lost by UBS in the wake of widespread news reports that UBS was being investigated by U.S. authorities for helping U.S. taxpayers evade taxes and hide assets in Swiss bank accounts. By mid-2008, UBS had stopped servicing undeclared accounts for U.S. taxpayers, and WEGELIN took a number of steps to capitalize on the opportunity to assist U.S. taxpayers hide their assets from the U.S. government.
To further the goals of the conspiracy from 2002 through 2011, WEGELIN took steps that included the following:
- Opening and servicing undeclared accounts for U.S. taxpayer-clients in the names of sham corporations and foundations formed under the laws of Liechtenstein, Panama, Hong Kong, and other jurisdictions for the purpose of concealing some clients’ identities from the IRS;
- Accepting documents that falsely declared that the sham entities were the beneficial owners of certain accounts, when in fact the accounts were beneficially owned by U.S. taxpayers, and making the false documents part of WEGELIN’s client files;
- Permitting certain U.S. taxpayer-clients to open and maintain undeclared accounts at WEGELIN using code names and numbers to minimize references to the actual names of the U.S. taxpayers on Swiss bank documents;
- Ensuring that account statements and other mail for U.S. taxpayer-clients were not mailed to them in the United States;
- Communicating with some U.S. taxpayer-clients using their personal email accounts to reduce the risk of detection by law enforcement; and
- Issuing checks drawn on, and executing wire transfers through, its U.S. correspondent bank account for the benefit of U.S. taxpayers with undeclared accounts at WEGELIN and at least two other Swiss banks. In so doing, WEGELIN sometimes separated the transactions into batches of checks or multiple wire transfers in amounts that were less than $10,000 to reduce the risk that the IRS would detect the undeclared accounts.
At the time of Wegelin’s guilty plea before Judge Rakoff on January 3, 2013, Wegelin managing partner Otto Bruderer admitted on behalf of Wegelin that “[f]rom about 2002 through about 2010, Wegelin agreed with certain U.S. taxpayers to evade the U.S. tax obligations of these U.S. taxpayer clients, who, among other things, filed false tax returns with the IRS.” Bruderer also admitted that “[i]n furtherance of its agreement to assist U.S. taxpayers to commit tax evasion in the United States, Wegelin opened and maintained accounts at Wegelin in Switzerland for U.S. taxpayers who did not complete W-9 tax disclosure forms,” which are IRS forms U.S. taxpayers can use to identify themselves as such to a bank, thereby causing the bank to report income generated in the U.S. taxpayers’ account to the IRS. Bruderer further admitted that “Wegelin knew that certain U.S. taxpayers were maintaining non-W-9 accounts at Wegelin in order to evade their U.S. tax obligations, in violation of U.S. law, and Wegelin knew of the high probability that other U.S. taxpayers who held non-W-9 accounts at Wegelin also did so for the same unlawful purpose.” Bruderer also admitted that “Wegelin intentionally opened and maintained non W-9 accounts for [certain U.S.] taxpayers with the knowledge that, by doing so, Wegelin was assisting these taxpayers in violating their legal duties” and that “Wegelin was aware that this conduct was wrong.”
U.S. taxpayers are required to report the existence of any foreign bank account on their federal income tax returns if it holds more than $10,000 at any time during a given year, as well as any income it earns.
By the end of 2009, the collective maximum value of the assets in undeclared accounts beneficially owned by U.S. taxpayer-clients of WEGELIN was approximately $1.5 billion, with many accounts holding more than $10,000 in any one year.
The April 2012 forfeiture of approximately $16.2 million from WEGELIN’s correspondent bank account was the result of a civil forfeiture Complaint filed in February 2012. As alleged in the Complaint, WEGELIN used its correspondent bank account at UBS to help U.S. taxpayers with undeclared accounts repatriate money that they had hidden at WEGELIN. This was often done in a manner designed to evade detection by U.S. authorities. For example, U.S. taxpayers routinely asked WEGELIN to issue and send them checks, which were drawn on WEGELIN’S correspondent bank account, and that represented funds held in their secret accounts at the bank. Further, WEGELIN permitted at least two other Swiss banks to issue checks drawn on its correspondent bank account for the benefit of U.S. taxpayers holding undeclared accounts at these other banks. The sheer volume of transactions in WEGELIN’s correspondent bank account served to conceal the repatriation of money from U.S. taxpayers’ undeclared accounts at WEGELIN and the other banks. On April 24, 2012, U.S. District Judge Laura Taylor Swain entered an order forfeiting over $16.2 million seized from the U.S. correspondent account of WEGELIN. As part of its plea agreement, WEGELIN agreed not to contest the April 2012 forfeiture.
The components of today’s order to pay approximately $58 million to the United States include approximately $20 million in restitution to the IRS; a fine of $22.05 million; and forfeiture in the approximate amount of $15.8 million, representing the gross fees earned by the bank on the undeclared accounts of U.S. taxpayers. Wegelin paid the civil forfeiture amount of $15.8 million to the United States on January 4, 2013.
WEGELIN is headquartered in St. Gallen, Switzerland.
Mr. Bharara praised the outstanding efforts of Internal Revenue Service, Criminal Investigation in the investigation. He also thanked the U.S. Department of Justice’s Tax Division and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Miami Foreign Corruption Investigations Group for their significant assistance in the investigation.
This criminal case is being handled by the Office’s Complex Frauds Unit and the civil forfeiture proceedings are being handled by the Office’s Asset Forfeiture Unit. Assistant U.S. Attorneys David B. Massey, Daniel W. Levy, and Jason H. Cowley are in charge of the prosecution and civil forfeiture proceedings.
Charges remain pending against client advisers Michael Berlinka, Urs Frei, and Roger Keller, who all reside in Switzerland and have not been arrested. The charges and allegations are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Staff Sergeant Sentenced for Bulk Cash SmugglingRead the Press Release
Elizabeth City - United States Attorney Thomas G. Walker announced that in federal court today TONYA LONG, 30, of Fayetteville, North Carolinawas sentenced to 60 months imprisonment, 3 years of supervised release, and ordered to pay one million dollars in restitution, by United States District Judge Terrence W. Boyle for bulk cash smuggling and aiding and abetting the same, in violation of Title 31, United States Code, Section 5332(a) and Title 18, United States Code, Section 2.
U.S. Attorney Walker stated, “Tonya Long betrayed her team and while other soldiers were fighting for our country, she was stealing money intended to support the mission. Her conduct undermined her fellow soldiers and our nation’s reputation. This sentence demonstrates that conduct like this will not be tolerated.”
According to the Criminal Information filed on September 21, 2012, and information presented in open court, LONG was a Staff Sergeant (E-6) in the United States Army assigned to the 189th Combat Sustainment Battalion (XVIII Airborne Corps) attached to the 7th Special Forces Group for a wartime deployment to Afghanistan. From January 12, 2008, through April 5, 2009, LONG was deployed to Afghanistan under the command of the Combined Joint Special Operations Task Force – Afghanistan, of which the 7th Special Forces Group was a part. During her deployment to Afghanistan, LONG performed duties as a Customs Inspector by inspecting personal property of military service members prior to such property being loaded into containers for shipment back to the United States.
Between January 2009 and February 7, 2009, LONG aided and abetted another military service member in concealing over $1,000,000 by striping the components out of VCR players and then hiding the money inside. LONG cleared the containers through customs herself, and they were then shipped back to the United States in connex shipping containers. Neither LONG nor the other person declared the currency upon entry into the United States. LONG acted with the intent to evade the currency reporting requirements.
LONG spent nearly $500,000 on herself and her family. Some of the items she purchased were a vacation, a car, personal surgeries, and an 18 wheeler truck and trailer.
The criminal investigation of this case was conducted by United States Defense Criminal Investigative Service; the United States Department of Army - Criminal Investigation Command, Major Procurement Fraud Unit; the Special Inspector General - Afghanistan Reconstruction; and the Federal Bureau of Investigation. Assistant United States Attorney Banumathi Rangarajan prosecuted the case on behalf of the Eastern District of North Carolina.
St. Francis Man Indicted for LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota man has been indicted by a federal grand jury for Larceny.
John Swift, age 55, was indicted by a federal grand jury on February 13, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 27, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to 5 years’ in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 Special Assessment. Restitution may also be ordered.
The charge is merely an accusation and Swift is presumed innocent until and unless proven guilty. The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
Swift was released on bond pending trial. A trial date has not been set.
St. Francis Man Indicted for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Orson Black Spotted Horse, age 49, was indicted by a federal grand jury on February 15, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 28, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to 10 years’ in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 Special Assessment. Restitution may also be ordered.
The charge is merely an accusation and Black Spotted Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Black Spotted Horse was remanded to the custody of the U.S. Marshal pending trial. A trial date has been set for April 30, 2013.
Sioux City Man Pleads Guilty to Distributing Child PornographyRead the Press Release
A man who distributed child pornography pled guilty on February 28, 2013, in federal court in Sioux City.
Chad Carver, age 27, from Sioux City, Iowa, was convicted of one count of distribution of child pornography.
At the plea hearing, Carver admitted that, between September 2010 and September 2011, he used the Internet to distribute child pornography.Sentencing before United States District Court Judge Donald E. O’Brien will be set after a presentence report is prepared. Carver remains in custody of the United States Marshal pending sentencing. In a plea agreement, Carver agreed to be sentenced to at least 10 years’ imprisonment. He faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, a $100 special assessment, and supervised release for 5 years to life following his imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation and the Federal Bureau of Investigation.This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-4079.
Sioux City Man Pleads Guilty to Distributing and Receiving Child PornographyRead the Press Release
A man who distributed and received child pornography pled guilty on February 25, 2013, in federal court in Sioux City.
Jeffrey Huygens, age 47, from Sioux City, Iowa, was convicted of one count of distribution of child pornography and one count of receipt of child pornography.
At the plea hearing, Huygens admitted that, between September 2011 and December 2011, he used the Internet to distribute child pornography. He also admitted that, between 2002 and March 2012, he used the Internet to receive child pornography. In addition, he admitted that, in 1990, in Island County, Washington, he was convicted of Child Molestation in the First Degree.Sentencing before United States District Court Judge Donald E. O’Brien will be set after a presentence report is prepared. Huygens remains in custody of the United States Marshal pending sentencing. Huygens faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 80 years’ imprisonment, $500,000 in fines, a $200 special assessment, and supervised release for 5 years to life following his imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation.This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-4094.
San Diego Man Sentenced for Sex Trafficking of Children; Trafficking Cases up SignificantlyRead the Press Release
San Diego - Carlos Alberto Garcia, who made thousands of dollars pimping out underage girls using internet ads, was sentenced in federal court this morning to 12 years in prison plus 10 years supervised release for sex trafficking of children. Garcia pleaded guilty in August and has been in custody since his arrest on June 26, 2012.
The case began as a result of investigations by San Diego Police Department vice detectives in November 2011 and January 2012. Detectives searched online advertisements for escorts, set up dates and discovered the underage girls working as prostitutes. Garcia was eventually identified as their pimp.
According to court documents, one of the girls, age 17, described Garcia as “ruthless” and “crazy” and said he physically assaulted her for hiding $300. Garcia beat her, stripped her, forced her into a cold shower, poured ice on her, and made her stand in front of an air conditioner.
He then he took her to the Fashion Valley shopping mall and, using the money she’d earned from prostitution, bought himself $685 sneakers at the Gucci store, according to court records.
Human trafficking is the fastest growing criminal industry in the world today. It is second only to drug trafficking on the list of the biggest and most lucrative illicit enterprises.
Last year, the Department of Justice set a new record in the number of defendants charged in human trafficking cases in a single year. And over the last three years, there has been a 30 percent increase in the number of human trafficking cases charged. Human trafficking cases primarily involve sexual slavery or forced labor.
In the Southern District of California, which includes San Diego and Imperial counties, the U.S. Attorney’s office has seen a 600 percent increase in human trafficking cases in the last five years – from just a few to a couple dozen, with scores of defendants charged. Many of these cases involve the sex trafficking of children.
San Diego is a hot spot for these crimes. According to the FBI, this city is among the 13 most active child sex trafficking areas in the nation. Also on the list are Los Angeles and San Francisco.
Here are a few trafficking trends:
-The victims are getting younger. The average entry age of American minors into the sex trade is 12-14 years old. They’re not all runaways from broken homes - they’re plucked from malls and schools and through the internet via social media sites such as Facebook and Twitter.
-Gang members are increasingly dealing in the very lucrative crime of trafficking of young girls, and prosecutors around the country are using the RICO statute against them. Federal prosecutors in San Diego have one case in which a federal grand jury indicted 38 defendants and one LLC on a RICO charge. The indictment also included the criminal forfeiture of a hotel where many of the illegal acts took place.
According to court records, three Oceanside Crips gangs teamed up to operate an elaborate sex trafficking ring using the characteristics of a business enterprise - including deals with hotels and motels. Recruitment efforts focused on vulnerable underage girls. They were manipulated with promises of a luxurious lifestyle, intimidation and actual or threatened violence. A prostitute who broke the “rules” would be beaten or subjected to other humiliating punishments. They were traded to other pimps and transported to other states as if they were someone’s property.
Of the 39 defendants charged, 35 defendants pled guilty, three were dismissed, one was murdered in a gang related shooting. The defendants who pled guilty received sentences as high as 14 years in prison.
“These prosecutions, here and around the country, are yielding sentences that send an unmistakable message that human traffickers who prey on the most vulnerable among us will be brought to justice,” said U.S. Attorney Laura Duffy. “We have a lot of work to do. But together with our law enforcement partners, our work has saved lives and restored dignity to scores of victims. We’ve secured long prison sentences against individual traffickers and dismantled organized criminal enterprises, and we will keep on fighting to obliterate this great human rights tragedy.”
A few other examples of similar cases:
-Maurice Lerome Smith was sentenced in December 2011 to 30 years in prison for sex trafficking of children and by force, fraud and coercion. He was indicted in February, 2011, and was convicted by a jury in May 2011. According to court records, Smith picked up his victim on University Avenue: “Defendant ordered her into the car. (The 17-year-old victim) stated that Defendant told her to get in or she would be ‘in pieces in the trunk.’ Defendant drove (victim) to his residence in Oceanside, physically assaulted her with a belt, and had sex with her. The next morning, Defendant drove her down to the Motel 6 on Clairemont to work as a prostitute. Defendant told her to make $600.00. Defendant booked the room and left her. (The victim) stated she was afraid of Defendant.” Please see 11-cr-0471-BEN-1.
-Jonathan Jamar Sanders was sentenced to 19 years in prison in May 2012 after pleading guilty to sex trafficking of children, aiding and abetting, in January 2012. According to court documents, Sanders met a 15-year-old girl on the street in National City. At first he took her out on dates and started a sexual relationship with her. Then he forced her into prostitution. The girl would later tell federal agents that he’d threatened to beat her if she didn’t do it. She believed him, because she’d seen him violently attack another girl – hitting and kicking her so hard while she was on the ground that her body lifted up from the force. Because of our efforts, that gang member was convicted of sex trafficking of children. Please see 11cr1896-DMS.
-Randy Martell Ballard was sentenced to 12.5 years in prison after pleading guilty in November 2012 to sex trafficking of children. According to court documents, Ballard met a fourteen-year-old girl in El Paso, Texas and transported her to San Diego for the purpose of engaging her in prostitution. He purchased a bus ticket for her using a false name. Court documents further show that Ballard posted online prostitution ads on the Internet with a phone number that the minor had in her possession and provided the minor with false identification documents. Please see 12cr2259-BEN.
-Ralph Darnell Redd was sentenced in February 2012 to 15 years in prison after he was convicted by a jury in July 2011 of sex trafficking of children, sexual exploitation of a minor, and distribution of child pornography. According to court records, he also used internet ads to sell the sexual services of a 16-yearold girl who was tattooed with his moniker. Redd penned an autobiography in which he mentions his gang membership, past crimes and convictions and how “spending the whole 90's in and out of incarceration delayed my process of being successful as a rap artist.” Please see 10cr2740-W.
DEFENDANT Case Number: 12cr2999 Carlos Alberto Garcia SUMMARY OF CHARGETitle 18, United States Code, Sections 1591(a) and (b) - Sex Trafficking of Children
INVESTIGATING AGENCIESSan Diego Police Department
San Diego Jury Finds Defense Contractors Guilty in North Island Bribery CaseRead the Press Release
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DEFENDANTS Case Number: 12cr3320H Robert Ehnow
Joanne Loehr
Age: 46
Age: 52
Coronado, California
La Jolla, CaliforniaCenterline Industrial Inc., a California corporation
SUMMARY OF CHARGES IN CASE NO. 12cr3320HCount 1: Conspiracy to commit bribery, in violation of Title 18, United States Code, Section 371 (all defendants) - Maximum penalties: 5 years in prison, $250,000 fine, term of supervised release of three years, restitution, forfeiture, and $100 special assessment. (All defendants found guilty on Count One.)
Counts 2 to 7: Bribery, in violation of Title 18, United States Code, Section 201 (defendant Ehnow) - Maximum penalties (per count): Fifteen years in prison, $250,000 fine, term of supervised release of three years, restitution, and $100 special assessment. (Defendant Ehnow found guilty on Count Seven, not guilty on Counts Two through Six)
Counts 8 to 12: Bribery, in violation of Title 18, United States Code, Section 201 (defendants Loehr and Centerline) - Maximum penalties (per count): Fifteen years in prison, $250,000 fine, term of supervised release of three years, restitution, and $100 special assessment. (Defendants Loehr and Centerline found guilty on Counts Ninth through Twelve, not guilty on Count Eight)
Case Number: 12-CR-4071-LAB Sentencing Date: March 4, 2012Kenneth Paul Ramos
Case Number: 12-CR-1055-LAB Sentencing Date: September 10, 2012 Donald Vangundy
Kiet Luc
Brian Delaney
David Lindsay
John Newman
Michael Graven
Paul Grubiss Case Number: 10-CR-3737-LABJesse Denome
INVESTIGATING AGENCIESFederal Bureau of Investigation
Defense Criminal Investigative Service
Internal Revenue Service - Criminal Investigation
General Services Administration - Office of Inspector General
Naval Criminal Investigative ServiceSalt Lake City Man Sentenced to 57 Months Imprisonment for Shipping MDMA Pills to Grand Island, NebraskaRead the Press Release
United States Attorney Deborah R. Gilg announced that the Honorable John M. Gerrard, U.S. District Court Judge, sentenced James Sayavong to 57 months imprisonment, to be followed by 3 years of supervised release, and he was ordered to pay a $100 special assessment, following his conviction for conspiracy to distribute 3,4-methylenedioxymethamphetamine (also known as “MDMA” or “ecstasy”).
Between February of 2007 and April of 2009, Sayavong, who lived in Salt Lake City, Utah, would mail MDMA pills to people who lived in Grand Island, Nebraska. The people in Grand Island would then resell the MDMA pills and send payment back to Sayavong in Salt Lake City. Sayavong was arrested by the Federal Bureau of Investigation in Salt Lake City on March 23, 2012, and brought to Lincoln, Nebraska for prosecution. Sayavong pled guilty on December 6, 2012.
The FBI and the Central Nebraska Drug and Safe Streets Task Force were responsible for the investigation of this case.Rochester Man Sentenced for Distributing Child PornographyRead the Press Release
ROCHESTER, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that Joseph Hicks, 45, of Rochester, N.Y., who was convicted of distribution of child pornography, was sentenced to 108 months in federal prison and 20 years of supervised release by U.S. District Judge Charles J. Siragusa. Hicks will also have to register as a sexual offender.
Assistant U.S. Attorney Craig R. Gestring, who handled the prosecution, stated that Hicks was identified by federal agents conducting an undercover child pornography investigation. They executed a search warrant at the defendant’s Rochester residence and seized his computer which contained almost 15,000 images and over 400 movies depicting child pornography. Some of the child pornography images included violence against children, some as young as infants. Law enforcement officers also recovered hundreds of chats between Hicks and other online users from around the world during which he offered to trade child pornography with them. The defendant also gave these other users advice on how to conceal their online activities and how to evade detection by law enforcement.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The sentencing is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent In Charge James C. Spero.Repeat and Dangerous Sex Offender Sentenced to 20 Years in Federal PrisonRead the Press Release
Orlando, FL - U. S. District Judge Roy B. Dalton, Jr. sentenced Nicholas Knittig (30, Kansas) today to 20 years’ imprisonment for attempted sexual enticement of a minor, and 10 years’ imprisonment for transfer of obscene material to minors. The sentences were ordered to be served concurrently, followed by a lifetime of supervised release. Knittig was indicted on August 8, 2012. He pleaded guilty on October 31, 2012. As a previously convicted sex offender, Knittig was classified as a repeat and dangerous sex offender against minors.
According to court documents, only two months after serving a 5-year term of supervised release from a previous conviction, Knittig communicated over the Internet with an undercover agent in a St. Johns County (Florida) Sheriff’s Office operation. During the conversation, Knittig reiterated his desire to have sex with children and requested pictures of them. In May 2012, Knittig became the subject of an FBI investigation in Orlando. During that investigation, he continually explained the sexual acts, in graphic detail, he would perform on children. On June 19, 2012, Knittig spoke with both an FBI Undercover (UC) and a second agent who portrayed the UC’s 13 year-old child. Knittig stated his plans to come and visit the UC and the UC’s children during the coming weekend. At the end of the conversation, Knittig told the UC that he would send a picture for the UC to show the UC’s 13-year-old daughter. Subsequently, the UC received an e-mail from Knittig that included a JPEG image of Knittig’s genitalia. In a subsequent investigation conducted by the Alachua (Florida) Police Department, Knittig e-mailed a picture of his genitalia to a UC and another agent posing as a child. During his conversation with the presumed child, Knittig told the UC to make sure that her stepfather showed her the picture.
On or about August 22, 2012, a search warrant was executed at Knittig’s residence in Kansas. A forensic examination of the computer revealed that it contained 96 videos and 326 images of child pornography. The videos depicted boys and girls of varying ages up to 12 years old, including infants.
This case was investigated by the Federal Bureau of Investigation-Orlando, Federal Bureau of Investigation-Kansas, St. Johns County (Florida) Sheriff's Office, and the Alachua (Florida) Police Department. It is being prosecuted by Assistant United States Attorney Christopher LaForgia.
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."
Quincy Man Sentenced for Running Illegal Gambling Business in Boston’s Chinatown, Using Violence to Collect DebtsRead the Press Release
Boston - As part of an ongoing investigation into extortion and illegal gaming in Boston’s Chinatown, a Quincy man was sentenced today for running an illegal gambling business. The investigation included a court-authorized wiretap on the defendant’s phone and a series of consensual video-recordings made inside gambling dens.
Minh Cam Luong, a/k/a “Ming Jai,” 48, was sentenced by U.S. District Chief Judge Patti Saris to 84 months in prison to be followed by three years of supervised release, forfeiture pursuant to the agreed forfeiture orders, and a special assessment in the amount of $1,100. Luong pleaded guilty in September 2012 to an 11-count-indictment charging him with running an illegal gambling business and using threats of violence, and actual violence, to collect debts from gamblers and others who borrowed money. Judge Saris imposed the sentence today at the end of a three-day evidentiary sentencing hearing. The sentence represented an upward departure from the Guideline range as Judge Saris had calculated it. She based her upward departure on Luong’s “appalling” threats of violence and use of actual violence to terrify his numerous extortion victims over about a two-year period.
“The people of Boston’s Chinatown deserve to live in peace and without violence in their community,” said United States Attorney Carmen M. Ortiz. “We are hopeful that this lengthy sentence will offer some relief to the community. Prosecuting organizations who prey on others will continue to be a priority for my office.”Luong admitted that he managed the illegal gambling business, and that numerous people were victims of his extortionate collections scheme. Luong’s business ran a series of three illegal gambling dens, on Edinboro Street, Harrison Avenue and Beach Street in Chinatown, from early July 2009 through June 2011. The gambling dens offered high-stakes gambling on Chinese table games. The most lucrative game was “pai gau,” in which the gamblers play against each other, not against the “house.” The “house” collects a five percent commission on every winning hand, and the winnings on each hand could range from hundreds to tens of thousands of dollars.
Luong and his company lent large amounts of money to gamblers and others. When debtors did not pay, Luong and his associates threatened to come after them and beat them up. Others, including the operators of other Chinatown gambling dens, were beaten up in order to maintain Luong’s “face,” and his ability to collect debts from frightened debtors.
During one of the intercepted conversations, Luong told a criminal associate that he had opened his illegal gambling business in Boston rather than in New York, because Boston was “like the countryside,” but “quite wealthy,” and “these country folks don’t know anything.” Luong said that his Beach Street gambling den had made $100,000 during a three-day period around Chinese New Year 2011, and that normally, the gambling den generated $60,000 or $70,000 per week in profits.
In several other intercepted conversations and voice mail messages, Luong threatened debtors with dire consequences if they did not pay up. Luong told one debtor that the debtor’s whole family would “go to hell” if he did not pay. Luong told the debtor about someone else whom Luong had beaten up the previous night, and warned the debtor that the same could happen to him. Luong told another debtor that she should not think that her being a woman would prevent Luong from beating her up if she did not pay.“Boston is one of a dozen cities nationwide which the FBI has identified as having a prevalence of Asian criminal enterprises. By identifying the threat posed by these enterprises, the FBI and our law enforcement partners can be persistent, methodical, and unyielding in investigating their activity,” said Richard DesLauriers, Special Agent in Charge of the FBI’s Boston division. “The residents of Boston’s Chinatown and others affected by Mr. Luong’s crimes should know that we are continuing to pursue those whose criminal activity disrupts the community’s economic and social vibrancy.”
“The defendant in this case gambled and lost. Illegal gambling is not a victimless crime. Those who participate in these criminal enterprises have no problem using threats and violence to collect outstanding debts,” said Boston Police Commissioner Edward F. Davis. “Today’s sentence sends a powerful message; this type of activity will not be condoned.”
“In addition to breaking the law by conducting unauthorized games of chance and usurious lending, gambling houses breed and attract violence,” said Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police. “The people who run the games use intimidation and violence to collect debts, and the games themselves are targets for criminals, often armed, who are looking to do a rip for a quick score. Operations like the one Minh Cam Luong ran cannot be tolerated.”
Quincy Police Chief Paul Keenan said, “The Quincy Police are pleased with the outcome of the Minh Cam Luong case. The outcome was the result of a long and difficult investigation working in collaboration with a number of law enforcement organizations, the FBI, the IRS, Boston Police, Medford Police, Mass Department of Corrections, State Police and the US Attorney’s Office.”
“The Massachusetts Department of Correction is committed to working with other criminal justice agencies in a joint effort to ensure public safety,” said Luis S. Spencer, Commissioner of the Massachusetts Department of Correction.
Luong was initially charged along with nine others in 2011. The indictment was superseded in August 2012, charging two additional individuals. To date, all 10 of the defendants charged in the initial indictment and one of the defendants added by the superseding indictment have pleaded guilty to illegal gambling business or extortionate collections conspiracy charges. Last week, Pau Hin, also of Quincy, whom the government described in court as Luong’s partner and primary enforcer and debt collector, pleaded guilty to illegal gambling business and extortionate collections charges, and also pleaded guilty to participating with Luong in a conspiracy to make extortionate high-interest loans to gamblers and others in Chinatown and at Foxwoods casino. Pau’s sentencing is scheduled for June 5, 2013.
United States Attorney Ortiz; SAC DesLauriers; William P. Offord, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation in Boston; Boston Police Commissioner Davis; Colonel Alben; Quincy Police Chief Keenan; Medford Police Chief Leo A. Sacco, Jr.; and Commissioner Spencer; made the announcement. The cases are being prosecuted by Assistant U.S. Attorneys Richard L. Hoffman and Timothy E. Moran of the Organized Crime Strike Force Unit.Putnam County Man Sentenced to Federal Prison for Possessing A Stolen FirearmRead the Press Release
HUNTINGTON, W.Va. – U.S. Attorney Booth Goodwin today announced that a Putnam County man was sentenced to a year and a half in federal prison for possession of a stolen firearm. Robert Allen Armstrong, 25, of Hurricane, W.Va., previously pleaded guilty in October 2012. On July 16, 2010, officers with the Hurricane Police Department arrived at the defendant’s Putnam County residence to execute an arrest warrant. During the execution of the warrant, an officer seized a Raven Arms .25 caliber pistol from behind a planter located on the porch of the residence. Armstrong was arrested at the time.
The defendant admitted that he possessed a Ruger .22 caliber pistol in his bedroom dresser at the residence. Law enforcement officers later received a complaint that the Ruger .22 caliber pistol had been stolen from a pickup truck sometime between July 15 and July 22, 2010. Armstrong admitted that he knew the Ruger .22 caliber pistol had been stolen.
Armstrong was previously convicted of a felony in February 2007 in the Circuit Court of Putnam County, West Virginia and did not have his rights to possess a firearm restored.
This case was investigated by the Hurricane Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorney Joshua Hanks handled the prosecution.
The sentence was imposed by United States District Chief Judge Robert C. Chambers.
This case was prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime
Pine Ridge Man Indicted for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota man was indicted by a federal grand jury for Assault on a Federal Officer and Assault With a Dangerous Weapon.
Kaleb Mills, 19, was indicted on February 20, 2013 for hitting an Oglala Sioux Tribe police officer with his car. He appeared before U.S. Magistrate Judge Veronica L. Duffy on February 25, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 20 years’ imprisonment and/or a $250,000 fine. The charges are merely an accusation and Mills is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Mills was remanded to the custody of the U.S. Marshal. A trial date has not been set.