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4 March 2013
Pine Ridge Man Indicted for Aiding and Abetting in AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge man was indicted by a federal grand jury for aiding and abetting in the assault of another man at Pine Ridge on October 16, 2012.
William Clifford, age 24, was indicted on October 23, 2012 for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury. Clifford appeared before U.S. Magistrate Judge Veronica L. Duffy on February 12, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 10 years' imprisonment, a $250,000 fine, or both, up to 3 years of supervised release, and a $100 special assessment. The charges are merely an accusation and Clifford is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs. Special Assistant U.S. Attorney Laura A. Shattuck is prosecuting the case. Clifford was remanded to the custody of the U.S. Marshal. A trial date has not been set.
Percy Woman Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
On March 1, 2013, Kathy L. Griffin, 36, of Percy, IL, pled guilty in United States District Court in Benton to a one-count second superseding indictment charging conspiracy to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
The offense occurred between January 2011, and January 2013, in Perry, Jackson, and Randolph Counties. Evidence at the plea hearing established that Griffin was involved with others in the manufacture of methamphetamine. Griffin obtained and supplied over 103 grams of pseudoephedrine for use during the manufacture methamphetamine.
Sentencing was set for June 6, 2013. At that time, Griffin faces up to 20 years’ imprisonment, 4 years’ supervised release, and a fine of up to $1,000,000.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Randolph County Sheriff’s Office, Perry County Sheriff’s Office, Percy Police Department, Murphysboro Police Department, Sparta Police Department, and Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Operators of Multi-State Prostitution Ring using Illegal Asian Immigrants Indicted for Conspiracy and Money LaunderingRead the Press Release
Six people who operated a web of apartments in four States used as brothels were indicted last week for conspiracy to transport individuals for prostitution, conspiracy to use a communications facility to promote prostitution and conspiracy to engage in money laundering, announced U.S. Attorney Jenny A. Durkan. The indictment was returned following an undercover investigation involving the King County Sheriff’s Office, the Kirkland Police Department, the Bellevue Police Department, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). The conspirators advertised Asian women for ‘massage services’ on backpage.com, and leased apartments in Bellevue and Kirkland, Scottsdale, Arizona, Chicago, Illinois, and Falls Church/Tysons Corner, Virginia. Some of the defendants will appear in U.S. District Court in Seattle at 2:30 p.m. today.
“These defendants exploited vulnerable women immigrants to enrich themselves,” said U.S. Attorney Jenny A. Durkan. “We will work with our partners to stop this exploitation. I commend the member of our community who alerted law enforcement. I also applaud the good work of the King County Sheriff’s Office, and the Bellevue and Kirkland Police Departments for their work with ICE’s Homeland Security Investigations on this case.”
According to the indictment and other records filed in the case, law enforcement began investigating reports of apparent prostitution activity at a Kirkland apartment complex. The investigation revealed that six people were working together running a prostitution business utilizing apartments they rented in four different states, and ads placed on backpage.com. Many of the women who provided sexual services were in the U.S. illegally, having overstayed their visas. The women owed debts of as much as $60,000 to the leader of the prostitution ring, for providing them with the employment opportunities in the U.S. Most of the women were recruited in Thailand and came to the U.S. knowing they would be sex workers to pay off their debt. The conspirators used multiple cell phones to place the ads, and one of the conspirators worked as the “operator,” lining up appointments for the women. Those indicted today include:
UNRUEAN ABOULAFIA, 34, of Bellevue is the leader of the scheme. A Thai national, she was in the U.S. illegally. She allegedly recruited the women from Thailand, and advertised their services on backpage.com. The women paid her their smuggling debt.
THANYATHORN MOHR, 35, of Bellevue is a Thai National who was legally in the U.S. She allegedly was the “operator” for the women, responding to the calls generated by the backpage.com ads, scheduling appointments and directing clients to the apartments.
JEFF CHU, 48, a U.S. citizen living in Bellevue, allegedly leased various apartments for the group in Bellevue and in Illinois, in both his name and the name of his ex-wife. He collected some of the proceeds for the conspiracy and laundered the money through various bank accounts.
XINPING ZHANG, 39, a Chinese National legally in the U.S. and CHU’s ex-wife. She allegedly rented various apartments for the conspirators, collected money and laundered funds.
EDWARD FLANIGAN, 57 of Federal Way, Washington, allegedly rented apartments for the prostitution activities in Washington and Arizona.
STEVEN ABOULAFIA, 59, a U.S. Citizen of Henderson, Nevada, and the ex-husband of the ring leader, allegedly leased apartments in Washington and Virginia and collected prostitution proceeds.
“This investigation has revealed a criminal enterprise that spans at least four states and affects multiple residential neighborhoods,” said Brad Bench, special agent in charge of HSI Seattle. “Only through multi-agency cooperative investigations can law enforcement be most effective at attacking and dismantling these organizations that prey on the vulnerable and often bring other criminal activity into our area.”
“This case is more than prostitution, money laundering, and conspiracy. It is about human trafficking,” said King County Sheriff John Urquhart. “The Sheriff’s Office is committed to fighting human trafficking and holding responsible those who engage in this despicable activity.”
“The Bellevue Police Department is committed to proactively targeting all forms of human trafficking with our law enforcement partners on all levels (local, county, state, and federal). Bellevue police condemns the financial and physical exploitation of these victims and the suspects who manage these operations,” said Bellevue Police Investigations Captain Steve Lynch.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Conspiracy to transport individuals for prostitution and conspiracy to use a communications facility to promote prostitution are each punishable by up to five years in prison, and conspiracy to engage in money laundering is punishable by up to twenty years in prison.The case is being investigated by the King County Sheriff’s Office; HSI Seattle, Chicago, and Washington, DC; the Bellevue Police Department; and the Kirkland Police Department. The case is being prosecuted by Assistant United States Attorney Ye-Ting Woo.
Olathe Man Sentenced on Charge of Failing to File Federal Currency ReportsRead the Press Release
KANSAS CITY, KAN. – A man from Olathe, Kan., has been sentenced to 21 months in federal prison for failing to file federal currency transaction reports, U.S. Attorney Barry Grissom said today.
Pedro R. Padilla, 46, Olathe, Kan., pleaded guilty to 10 counts of willfully failing to file currency reports. A criminal information filed in June 2012 in U.S. District Court in Kansas City, Kan., alleged that the transactions occurred at Novedades El Guero, an Olathe business engaged in check cashing. The information alleged Padilla failed to make reports on 10 transactions that took place in 2011 ranging from $10,541 to $44,840.
Grissom commended the Internal Revenue Service, Criminal Investigation, and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Oglala Man Sentenced for Assault of A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that an Oglala, South Dakota man convicted of Assault on a Federal Officer was sentenced on February 25, 2013 by Chief U.S. District Judge Jeffrey L. Viken. Andrew Cochran, age 24, was sentenced to time served and 1 year of supervised release and ordered to pay $100 to the Victim Assistance Fund.
In August 2012, Cochran intentionally struck an Oglala Sioux tribal police officer’s vehicle with his pickup truck, as the officer attempted to stop Cochran’s vehicle. He pled guilty on November 28, 2012.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Newark, N.J., Businessman Sentenced to Two Years’ Probation for Extortion ConspiracyRead the Press Release
TRENTON, N.J. – Newark, N.J., businessman Sonnie Cooper was sentenced today to two years of probation, including eight months of home confinement, for his part in an extortion conspiracy in which a former Newark deputy mayor official used his official position to steer demolition work to Cooper’s trucking company, U.S. Attorney Paul J. Fishman announced.
U.S. District Judge Freda L.Wolfson imposed the sentence today in Trenton federal court. A jury returned a guilty verdict against Cooper, 70, and former Newark Deputy Mayor for Public Safety Ronald Salahuddin, 62, following a trial in October 2011. Salahuddin and Cooper were both convicted of one count of conspiracy to extort under the color of official right. They were each acquitted of one count of attempted extortion under the color of official right, and two counts of bribery. Salahuddin also was acquitted of an additional count of bribery.
On Feb. 11, 2013, Judge Wolfson sentenced Salahuddin to one year and one day in prison.
According to documents filed in this case and the evidence at trial:
Shortly after Salahuddin became deputy mayor in July 2006 and through December 2007, Salahuddin and Cooper conspired to use Salahuddin’s official position to steer City of Newark and Prudential Center demolition work to a cooperating witness who, in exchange for Salahuddin’s official action and influence, had to give a portion of that work to Cooper, the owner of S. Cooper Brothers Trucking, Inc. (“Cooper Trucking”).
While deputy mayor, Salahuddin maintained a concealed financial interest in Cooper Trucking. Salahuddin mortgaged approximately $900,000 worth of property as collateral for Cooper Trucking, as well as lent money to Cooper for payroll and received money from Cooper related to the company’s operations.
In addition to probation, Judge Wolfson fined him $3,000.U.S. Attorney Fishman credited special agents of the FBI’s Trenton and Newark Field Offices, under the direction of Acting Special Agent in Charge David Velazquez; and IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Harvey Bartle of the U.S. Attorney’s Office in Trenton, Assistant U.S. Attorneys and Zahid N. Quraishi of the U.S. Attorney’s Office Special Prosecutions Division in Newark, and James B. Nobile, chief of the Special Prosecutions Division.
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Defense counsel: Alan Zegas Esq., Chatham, N.JNew York Loan Broker Arraigned on Charges of Defrauding Customers of $1.2 MillionRead the Press Release
ATLANTA - A New York broker has been indicted for conspiring to defraud 350 financially strapped customers of more than $1.2 million. Kenneth J. Enrico, 46, of Bohemia, New York, was arraigned today on a federal indictment before United States Magistrate Janet F. King on one count of conspiracy, three counts of mail fraud, and thirteen counts of wire fraud. The federal grand jury indicted Enrico on February 19, 2013.
“The public is once again reminded that if a deal sounds too good to be true, it usually is,” said United States Attorney Sally Quillian Yates. “The charges against Enrico reflect our continuing commitment to protect our more financially vulnerable victims from the fraudsters who prey upon them.”
According to United States Attorney Yates, the charges and other information presented in court, between June 2011 and August 2012, Enrico offered property buyers private lender loans of 105% of the property’s selling price at a 4.99% interest rate, regardless of the buyer’s credit score, as long as the buyers had jobs that generated enough income to qualify for the loan amount and monthly payments. Enrico required the buyers to pay him an up-front fee of $2,500 per loan, which he claimed covered loan processing fees and the appraisal. Enrico publicized his offer through several brokers, two of whom were located in the metropolitan Atlanta area. The broker tacked on additional fees.
More than 350 individuals responded to Enrico’s pitch and sent in more than $1.2 million in up-front fees either to Enrico directly or through the brokers. Enrico approved all of the buyers for loans. However, none of the buyers ever received a loan from Enrico. He gave the buyers numerous excuses as to why their loans never closed. Not only did the buyers lose the fees paid to Enrico, they lost the earnest money they paid to the sellers of the properties they were trying to buy when their sales contracts expired. The buyers often relied on Enrico’s excuses and entered into sales contracts on second properties with additional earnest money payments, which they later lost when Enrico never funded their loans.
The charges each carry a maximum statutory penalty of 20 years in prison and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove his guilt beyond a reasonable doubt at trial.
This case is being investigated by Special Agents of the Federal Bureau of Investigation.
Assistant United States Attorney David Leta is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Montana Man Pleads Guilty to Felon in Possession of FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that Steven Shane McCann, age 29 of Missoula, Montana appeared before Chief U.S. District Judge Jeffrey L. Viken on February 14, 2013 and pled guilty to Felon in Possession of a Firearm. The maximum penalty upon conviction is 10 years’ imprisonment and/or a $250,000 fine.
On May 17, 2012 McCann, a previously convicted felon, was found in possession of a firearm. The investigation was conducted by Bureau of Alcohol, Tobacco, Firearms, and Explosives, the South Dakota Highway Patrol, and the South Dakota Division of Criminal Investigation. The case is being prosecuted by Special Assistant U.S. Attorney Laura A. Shattuck.
A presentence investigation was ordered and a sentencing date was set for May 20, 2013. The defendant was remanded to the custody of the U.S. Marshal pending acceptance of this plea and sentencing.
Mission Man Pleads Guilty to Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that Eddie Hummingbird, age 48, of Mission, South Dakota appeared before U.S. District Judge Roberto A. Lange on March 4, 2013 and pled guilty to Abusive Sexual Contact. The maximum penalty upon conviction is 2 years in custody, a $250,000 fine, or both; life of supervised release; and a $100 special assessment.
The conviction stems from an incident that took place on April 14, 2012 when Hummingbird sexually abused the victim.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
A presentence investigation was ordered and a sentencing date was set for June 3, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Mission Man Indicted for LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota man has been indicted by a federal grand jury for Larceny.
Harvey LaPointe, age 62, 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 LaPointe 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.
LaPointe was released on bond pending trial. A trial date has not been set.
Mission Man Indicted for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Johnny Lunderman, age 30, was indicted by a federal grand jury on February 13, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 26, 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; life of supervised release; and a $100 Special Assessment. Restitution may also be ordered.
The charge is merely an accusation and Lunderman is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshal Service. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Lunderman was remanded to the custody of the U.S. Marshal pending trial. A trial date has not been set.
Minnesota Man Charged with Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that Jesse Lawrence Brown Otter, age 45, of Minneapolis, Minnesota appeared before U.S. Magistrate Roberto A. Lange on February 26, 2013 and pled guilty to an Indictment that charged him with Failure to Pay Legal Child Support. The maximum penalty upon conviction is two years imprisonment; a $250,000.00 fine; one year supervised release; one additional year of custody upon revocation; a $100.00 assessment fee; and child support restitution amount owed at the time of sentencing.
Brown Otter was ordered by the Eighth Judicial Circuit Court, Corson County, South Dakota to pay $150.00 per month for his minor child, commencing August 1, 1992. At the time of Indictment, he had not made a child support payment since July of 2007, and the total arrearage amount was $25,342.12.
The investigation was conducted by the Department of Health and Human Services, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Thomas J. Wright.
A presentence investigation was ordered and a sentencing date was set for May 20, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Methamphetamine Indictment AnnouncedRead the Press Release
A Jackson County man and a Franklin County woman were indicted on February 21, 2013, in a one-count superseding indictment charging conspiracy to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
On February 25, 2013, Rachel L. Mills, 34, of Mulkeytown, Illinois, appeared in federal court in Benton, Illinois, on the one count superseding indictment charging conspiracy to manufacture methamphetamine. At the February 26, 2013, detention hearing, Mills was ordered held without bond pending an April 29, 2013, jury trial. Co-defendant Joseph R. Green, 48, of Elkville, Illinois, has previously appeared in federal court on the charge and is also being held without bond pending trial.
According to the indictment, the offense occurred between August 2009 and September 4, 2012, in Jackson County. The offense carries a penalty of up to 20 years in prison, 3 years supervised release, and a fine of up to $1,000,000.
Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office and the Murphysboro Police Department. The Jackson County State’s Attorney’s Office also assisted in the investigation.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Meridian Man Sentenced to 150 Months in Federal Prison for Trafficking MethRead the Press Release
POCATELLO – Cesar Urrea-Navarette, 34, of Meridian, Idaho, was sentenced in federal court today to 150 months in prison followed by five years of supervised release for possession with intent to distribute in excess of fifty grams of actual methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also fined Urrea-Navarette $1,000. He pleaded guilty to the charge on December 18, 2012.
According to the indictment, on July 7, 2011, a meeting was arranged by a third party between Urrea-Navarette and an undercover officer, who subsequently met with Urrea-Navarette in a vehicle located at a restaurant parking lot in Boise. At that meeting, Urrea-Navarette sold the undercover officer 55.10 grams of actual methamphetamine in exchange for $2,400. According to the indictment, Urrea-Navarette admitted he possessed the methamphetamine with the intent to distribute it on various dates, including July 7, 2011.
Co-defendant Ruben Moreno Sanchez, of Boise, was sentenced in September 2012 to 151 months in prison for possession with intent to distribute fifty grams or more of actual methamphetamine.
The indictment was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, in conjunction with Idaho State Police, Drug Enforcement Administration, and Boise Police Department. Other federal agencies participating in the OCDETF program include the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigation (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation and prosecution of major drug trafficking organizations.
Martin Men Indicted for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that two men from Martin, South Dakota have been indicted by a federal grand jury for allegedly assaulting two other men with shod feet, a golf club, and a large rock at Bear Creek Community on September 29, 2012.
Roby Shangreaux, age 24, and Keith Shangreaux, a/k/a Dewey Shangreaux, age 25, were each indicted by a federal grand jury on February 20, 2013 for two counts of Assault with a Dangerous Weapon and two counts of Assault Resulting in Serious Bodily Injury. Both men 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 10 years of imprisonment and a $250,000 fine on each count. The charges are merely accusations and both defendants are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, and the Bennett County Sheriff's Office.
Both defendants were remanded to the custody of the U.S. Marshal. A trial date has been set for April 30, 2013.
Man Who Committed the Armed Robbery of A Credit Union in Pampa, Texas, Is Sentenced to 96 Months in Federal PrisonRead the Press Release
AMARILLO, Texas — Billy Michael Grimes, 51, of Pampa, Texas, was sentenced this morning by U.S. District Judge Mary Lou Robinson to 96 months in federal prison and ordered to pay $2,800 in restitution for committing the armed robbery of a credit union in Pampa in September 2012. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, on September 15, 2012, Grimes, wearing a black hoodie and sweat pants and a New York Yankees ball cap, entered the Amarillo Community Federal Credit Union, located on North Hobart Street in Pampa, approached a teller and said he needed to make a withdrawal. The teller advised him that he would need to complete a withdrawal slip. Displaying a gun, Grimes told her he did not need a withdrawal slip and to give him all the money. After receiving the cash from the teller, Grimes ran out of the Credit Union. Shortly thereafter, Grimes was identified by law enforcement, located driving his vehicle and was stopped. He had a donut bag with him and said that he’d just come from the donut shop. The investigation revealed that Grimes used one of the bills from the robbery to purchase the donuts, just moments after robbing the Credit Union.
The case was investigated by the FBI and the Pampa Police Department. Assistant U.S. Attorney Christy L. Drake of the U.S. Attorney’s Office in Amarillo, Texas, was in charge of the prosecution.
Luray Man Convicted of Defrauding HIV/AIDS InvestorsRead the Press Release
RICHMOND, Va. – Michael F. Harris, 49, of Luray, Virginia, was found guilty of defrauding investors of more than $700,000 from a project aimed at purportedly developing a treatment for Human Immunodeficiency Virus infection / Acquired Immunodeficiency Syndrome (HIV/AIDS).
Following the five-day jury trial before United States District Judge Henry E. Hudson in which Harris was found guilty of securities fraud, wire fraud and mail fraud, he was immediately remanded into custody of the United States Marshal. Harris faces a maximum sentence of 90 years’ imprisonment when he is sentenced on June 11, 2013.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; and Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field office, made the announcement.
“Mr. Harris used hundreds of thousands of investor funds to travel the world and improve his home and farm,” said U.S. Attorney MacBride. “Thanks to the ongoing efforts of the Virginia Financial and Securities Fraud Task Force, Mr. Harris is another fraudster who has been caught and held accountable for his crimes.”
"Mr. Harris' fraudulent misrepresentations to investors regarding his proposed HIV/AIDS treatment ended in substantial proceeds being misappropriated for his personal use,” said FBI SAC Mazanec. “This multi-agency investigative effort and today's conviction demonstrates the zero-tolerance we have for this type of criminal behavior."
According to evidence presented at trial, Harris was the President and majority shareholder of M.F. Harris Research Inc. (MFH), a company incorporated under the laws of North Carolina in December 2003. He formed MFH to develop a treatment for HIV/AIDS. At various times in the past, Harris claimed to have discovered that the use of hyperbaric chambers to treat divers infected with HIV/AIDS for decompression sickness (also referred to as “the bends”), unexpectedly inhibited the virus. HARRIS claimed that MFH was devoted to pursuing a potential treatment regimen for HIV/AIDS using the hyperbaric chambers.
Evidence established that prior to October 2005 and continuing through at least July 2011, Harris solicited more than 80 investors for funds for MFH to use for: (a) obtaining MFH patents, both in the United States and abroad; (b) conducting human trials or assisting with advancing human trials using the treatment method; (c) continuing research on the treatment method; and (d) developing a treatment for HIV/AIDS. In connection with those investments, the defendant sold equity shares of MFH original issue stock and represented that invested funds would largely be used to pursue those objectives. From 2005 through 2011, Harris solicited most investors to pay $1 per share and, in many instances, he promised that MFH shares would be worth 10 to 20 times that amount once the patents were approved and clinical trials completed. On several occasions, Harris solicited investors with a sense of urgency and immediate need for funds in order to meet deadlines associated with the United States or foreign patent applications.
At trial, the United States established that Harris made material misrepresentations and omissions in connection with handling investors’ funds, including: (a) misrepresentations regarding MFH’s actual and proposed ownership of the United States patent; (b) misrepresentations about the security of the investments; (c) affirmative acts of concealing financial information regarding MFH and the defendant’s use of MFH investment funds; and (d) omissions regarding Harris’s intended use of the MFH investment funds for his own personal use and benefit. In reality, the defendant retained the United States patent in his own name and diverted the overwhelming majority of MFH investment funds for his own personal use and benefit. Between October 2005 and July 2011, Harris received over $880,000 in funds from the investors for MFH. A financial analyst from the National White Collar Crime Center (NW3C) testified at trial that of this money Harris misappropriated over $700,000 for his own use and benefit, unrelated to the MFH-related areas identified by the defendant to the investors. He used those funds to, among other things: (a) spend more than $250,000 for the costs associated with the purchase, improvements, and utilities associated with the defendant’s primary residence in Luray, Virginia; (b) pay over $70,000 for the his horse and farm expenses; (c) spend more than $25,000 at firearms stores; and (d) pay other personal expenses, including automobile, entertainment, restaurant, spa, international travel to competitive kayaking events, and other personal expenses.
The investigation was led by the Fredericksburg office of the Federal Bureau of Investigation (FBI) and the Virginia State Corporation Commission (SCC). Those agencies received assistance in the financial investigation from the National White Collar Crime Center (NW3C). Assistant United States Attorney Michael Gill and Special Assistant United States Attorney and Counsel with the SCC Gauhar Naseem prosecuted the case on behalf of the United States.
This investigation has been coordinated by the Virginia Financial and Securities Fraud Task Force, an unprecedented partnership between criminal investigators and civil regulators to investigate and prosecute complex financial fraud cases in the nation and in Virginia. The task force is comprised of several federal and state agencies, including the Virginia Attorney General’s Office. The task force is an investigative arm of the President’s Financial Fraud Enforcement Task Force (FFETF), an interagency national task force.
The FFETF 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.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Lower Brule Man Sentenced for Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota man convicted of Sexual Abuse of a Minor was sentenced on February 25, 2013 by U.S. District Judge Roberto A. Lange. Ty Middletent, age 22, was sentenced to 18 months in custody followed by 5 years of supervised release. Middletent was also ordered to pay $100 to the Victim Assistance Fund.
Middletent was indicted for Sexual Abuse and Sexual Abuse of a Minor by a federal grand jury on August 22, 2012 and pled guilty on November 14, 2012. The charge stems from an incident occurring between August 13, 2012 and August 14, 2012 in which Middletent and the victim were consuming alcohol at a residence in Lower Brule. Middletent and the victim engaged in sexual intercourse. The victim was 13 years old at the time. Middletent admits he knew the age of the victim and that she was too young to engage in any type of sexual activity.
The investigation was conducted by the Federal Bureau of Investigation and Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Middletent was immediately turned over to the custody of the U.S. Marshal.
Lower Brule Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota man convicted of Abusive Sexual Contact was sentenced on February 25, 2013 by U.S. District Judge Roberto A. Lange. Merle Wilson, age 56, was sentenced to 15 months in custody and 5 years of supervised release. Wilson is also to pay $100 to the Victim Assistance Fund.
Wilson was indicted for Sexual Abuse and Abusive Sexual Contact by a federal grand jury on August 14, 2012. He pled guilty to Abusive Sexual Contact on November 30, 2012. The charge stems from an incident occurring on July 30, 2012 in which Wilson and the victim were consuming alcohol. The victim realized she was intoxicated and upon arriving at her home, passed out on the couch in the living room area, fully dressed. Wilson came to her home mid-morning and saw the victim passed out on the living room couch. The victim awoke to find herself naked from the waist down with Wilson on top of her. At no time did the victim consent to Wilson taking off her clothes or engaging in any type of sexual contact.
The investigation was conducted by the Federal Bureau of Investigation and Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Wilson was immediately turned over to the custody of the U.S. Marshal following sentencing.
Liberty Man Charged with Attempted Bank Robbery after Shooting, High-speed ChaseRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Liberty, Mo., man was charged in federal court today with attempted bank robbery after being shot by an employee at a Trimble, Mo., bank and leading law enforcement officers on a high-speed chase.
Michael Stephen Oliva, 34, of Liberty, was charged in a federal criminal complaint filed in the U.S. District Court in Kansas City, Mo. Oliva, who has not yet had a court appearance, remains hospitalized and in federal custody pending a detention hearing.
According to an affidavit filed in support of today’s criminal complaint, Oliva entered First Security Bank, 202 U.S. Hwy. 169, Trimble, at about 1:25 p.m. Friday, March 1, 2013. Oliva allegedly pulled on a black mask, pointed what appeared to be a handgun (but was later found to be a realistic plastic replica) at a bank employee and ordered her to give him the money in her teller drawer. The employee instead dropped to the floor behind the teller stations and began crawling toward another bank employee, shouting for help. As she was crawling, the affidavit says, she saw Oliva lean over the teller station and point his handgun at her. She grabbed a plastic trash can and tossed it over the teller counter toward Oliva; however, Oliva had moved around the end of the teller stations and was directly behind her.
The second bank employee, who was in an office, heard the shouts for help. He saw Oliva pointing a handgun at the first bank employee, the affidavit says, and retrieved a Smith & Wesson .357 revolver. He fired two rounds at Oliva. The first shot struck Oliva in the jaw, according to the affidavit, and he turned and started toward the bank’s front doors. No money was taken during the attempted robbery.
After Oliva left the bank, the affidavit says, the first employee got up from the floor and saw him staggering behind a nearby building. She then saw a silver car drive very fast on Hwy. 169 past the bank, and called 9-1-1. Oliva had left a sizable trail of blood for about 150-200 feet that led to a handicapped parking space in the nearby building’s parking lot.
According to the affidavit, Trimble police officers located Oliva’s Dodge Stratus and began pursuing him at speeds approaching 100 miles per hour. Officers deployed spike strips and the vehicle stopped. When officers approached the car, Oliva got out of the vehicle and asked, “You guys going to let me die?” Officers noted that Oliva appeared to have suffered a gunshot wound to the jaw or chin and there was a large amount of blood on Oliva and in his vehicle.
Oliva was placed under arrest and transported to an emergency room for medical treatment.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the Trimble, Mo., Police Department, the Clinton County, Mo., Sheriff’s Department and the FBI.Leader in a Sophisticated Bank Fraud Scheme Sentenced to 7 Years in PrisonRead the Press Release
Recruited Bank Employees and College Students to Participate in the SchemeGreenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Bolarinwa Adeyale, a/k/a “Bola,” age 23, of Greenbelt, Maryland, today to seven years in prison, followed by five years of supervised release, in connection with a scheme to use stolen credit card convenience checks and counterfeit checks to defraud financial institutions. Adeyale was convicted by a federal jury on February 27, 2012, of conspiracy to commit bank fraud, two counts of bank fraud and aggravated identity theft.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; and Special Agent in Charge David Beach of the United States Secret Service – Washington Field Office.
According to evidence presented at the five day trial, in the fall of 2007 Adeyale; Okechukwo Otuya a/k/a Oke and Waffi; Oluwadamilola Feyisetan, a/k/a Dami (Dami); Adeniyi Adebiyi, a/k/a Niyi (Niyi); Alexander Diya and others devised a scheme to defraud Bank of America by depositing stolen credit card convenience checks into legitimate Bank of America accounts and withdrawing the money before the bank learned that the checks were not authorized. Adeyale, Otuya and Dami were among the leaders in the scheme. Adeyale, Otuya, Dami and Niyi obtained the convenience checks by stealing them from homeowners’ mailboxes in Montgomery, Howard and Prince George’s Counties. Adeyale and others also recruited college students to permit the use of the students’ bank accounts (the “compromised accounts”) to deposit stolen credit card convenience checks and make cash withdrawals from the accounts after the checks cleared. Adeyale and others also recruited bank employees to provide account information for “high end” bank customers, including the account name and numbers, customer’s signature cards or previously negotiated checks with appropriate signatures, and the customer’s address. Adeyale and others then used that information to create fraudulent checks for those accounts.
According to trial evidence, as a result of the scheme, the total amount of fraudulent deposits made by the conspirators from over 50 compromised bank accounts is over $1.2 million. The actual loss to Bank of America is over $600,000.
Otuya, age 31, of Laurel, Maryland, was sentenced to eight years in prison and was ordered to pay restitution, with the exact amount to be determined. Adebiyi, age 28, of Upper Marlboro, Maryland, was sentenced to four years in prison and ordered to pay restitution of $148,000. Feyisetan, age 24, of Laurel; Alexander Omotomiwa Diya, age 25, of Bowie; and Taiwo Akinyeke, age 28, of Laurel, were sentenced to 30 months, 28 months, and 15 months in prison, respectively, and were ordered to pay restitution of $33,135.58, $4,250, and $48,555.85.
In addition, co-conspirators Charles G. Richardson, Jr., age 26, of Capitol Heights, Maryland, was sentenced to 15 months in prison and ordered to pay restitution of $7,330.12; Oladipo Ayodeji, age 23, of Bowie, was sentenced to 14 months in prison in prison and ordered to pay restitution of $24,543.47; and Kennika Freeman, age 23, of Greenbelt, and Malia Forrester, age 31, of Millersville, Maryland, were each sentenced to five years’ probation. Marquis Borden, age 25, of Laurel, Maryland has pleaded guilty to his participation in the scheme and is awaiting sentencing.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
United States Attorney Rod J. Rosenstein thanked the U.S. Postal Inspection Service and U.S. Secret Service for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Robert K. Hur, who prosecuted the case.
Laurel Man Pleads Guilty to Producing Child PornographyRead the Press Release
Secretly Recorded a 13 Year Old Girl in a BathroomGreenbelt, Maryland – Frank Alan Klukosky, age 43, of Laurel, Maryland, pleaded guilty today to producing child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Richard McLaughlin of the Laurel Police Department; Howard County Police Chief William McMahon; and Elton Malone, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Special Investigations Branch.
According to the plea agreement, in June 2012, a federal probation officer discovered images and videos of child pornography on the cell phone of a registered sex offender on federal probation. Further investigation revealed that on June 24, 2012 Klukosky drove to the registered sex offender’s home in Laurel with an SD card that contained at least 120 images and six videos of child pornography. Klukosky then helped the registered sex offender load those images and videos onto his computer and cell phone.
On October 23, 2012 the FBI executed a search warrant at Klukosky’s home and seized video cameras, key fob cameras, computers, an external hard drive and other computer accessories. The external hard drive contained approximately 2,000 images and 16 videos of child pornography, including 11 videos depicting a 13 year old girl in a bathroom. The videos were taken with hidden key fob cameras. The videos were recorded on at least 10 occasions and depict the victim in stages of undress. In at least one of the videos, Klukosky is recorded while setting up or taking down the camera.
As part of his plea agreement, Klukosky must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Klukosky and the government have agreed that if the Court accepts the plea agreement Klukosky will be sentenced to 20 years in prison followed by up to a lifetime of supervised release. Chief U.S. District Judge Deborah K. Chasanow has scheduled sentencing for May 20, 2013 at 1:00 p.m.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from 10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution
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 "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, the Laurel and Howard County Police Departments and HHS-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi O’Malley, who is prosecuting the case.
Kent Man Charged with Drug CrimesRead the Press Release
A federal grand jury returned a three-count indictment charging Mesawn Smith, aka "Butter", age 31, of Kent, Ohio, with distribution of crack cocaine and possession with intent to distribute crack cocaine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that on or about May 15 and May 25, 2012, Smith distributed less than 28 grams of crack cocaine. The indictment further charges that on or about November 2, 2012, Smith possessed with the intent to distribute more than 28 grams of crack cocaine.
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 violations. In all cases, the sentences will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives - Youngstown Field Office and the Akron Police Department. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Johnstown Woman Admits Illegally Purchasing Guns for Another PersonRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., pleaded guilty in federal court to a charge of making false statements to a federally licensed firearms dealer, United States Attorney David J. Hickton announced today.
Kimberly G. Yarnavick, 47, pleaded guilty to three counts before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on July 15, 2009, in conjunction with the purchase of a Hi Point pistol; on Feb. 5, 2010, in conjunction with the purchase of a Phoenix pistol; and on March 3, 2010, in conjunction with the purchase of a American Arms pistol, Yarnavick knowingly made false statements in an effort to deceive Sporting Goods Discounters, a federally licensed firearms dealer. Yarnavick represented she was the actual buyer of the firearms when, in fact, she was purchasing the firearms on behalf of another person.
Judge Gibson scheduled sentencing for Aug. 1, 2013, at 9:30 a.m. The law provides for a total sentence of 30 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Pending sentencing, the court continued Yarnavick on bond.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Johnstown Police Department conducted the investigation that led to the prosecution of Yarnavick.
According to Mr. Hickton, Yarnavick is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Iranian Citizen and U.S. Citizen Residing in Louisville, Kentucky, Holding an Iranian Passport, Sentenced in Plot to Export Aircraft and Aircraft Parts to IranRead the Press Release
– Conspired to violate the U.S. embargo against Iran
LOUISVILLE, Ky. - David J. Hale, U.S. Attorney for the Western District of Kentucky; Lisa Monaco, Assistant Attorney General for National Security; and Perrye Turner, Special Agent in Charge, Federal Bureau of Investigation, Louisville Division, announced the sentencings today, of two men to charges related to unlawful export of aircraft and aircraft parts from the United States to Iran. One of the defendants, Hamid Asefi, age 67, is a citizen and resident of the Republic of Iran. The other, Behzad Karimian, also known as “Tony” Karimian, age 52, is a United States citizen living in Louisville, Kentucky who holds a valid Iranian passport and is employed as a Mesaba Airlines Pilot. Asefi was sentenced to 23 months in prison, and Karimian was sentenced to 46 months in prison by Chief Judge Joseph H. McKinley, Jr. in United States District Court. The defendants pleaded guilty in Louisville, before Magistrate Judge James D. Moyer on December 3, 2012. The two-count Indictment was returned by a Federal Grand Jury meeting in Louisville on August 2, 2012 and unsealed prior to their change of pleas hearings.
Hamid Asefi and Behzad Karimian were both charged with conspiracy to violate and violation of the International Emergency Economic Powers Act for exporting, selling, or causing the export or sale of aircraft and aircraft parts without first having obtained the required license from the U.S. Department of Treasury. Asefi made his initial appearance in U.S. District Court in Louisville, Kentucky on June 1, 2012. Karimian was arrested and made his initial appearance in U.S. District Court in Louisville, Kentucky on June 6, 2012.
Asefi is the principal officer of Aster Corp Ltd., an Iranian company with offices in both Iran and the United Kingdom. The Indictment charges that, beginning as early as August 2007 and continuing through April 2011, Asefi used the United Kingdom office of Aster to serve as a transshipment point to facilitate shipment of goods from the United States to Iran; Asefi used Aster to facilitate the shipment of goods from the United States to Iran through third party countries; Asefi sent requests on behalf of Iranian entities to Karimian for purchases of aircraft and aircraft parts located in the United States or owned by United States persons; and Karimian knowingly and willfully made inquiries, placed orders, and attempted to facilitate the purchase of aircraft and aircraft parts located in the United States and owned by United States persons on behalf of defendant Asefi and persons in Iran.
Asefi and Karimian pleaded guilty to Count One of the Indictment and admitted in court that they acted with knowledge and intent to violate the Iran embargo when on September 27, 2007, Asefi and Karimian sent emails to establish a “profitable business collaboration” for the purpose of procuring aircraft and aircraft components for end-users in Iran. They further admitted that on or about October 1, 2009, Asefi sent an email to Karimian which outlined the terms of delivery and payment on future transactions with Iran Air and stated “…remember that, only US Embargo has brought this chance and benefit to us, to get involved in these deals….”
Further, defendants Asefi and Karimian pleaded guilty to Count Two of the Indictment, and admitted that beginning in September 2009 and continuing through April 2010, they violated the embargo against Iran by exporting and causing the export of services related to the sale of a G.E. Aircraft Engine Model CF6-50C2, as well as attempting the procurement of helicopters manufactured by Bell Helicopter, from the United States to Iran, without first having obtained the required authorizations from the U.S. Department of Treasury. All of the aircraft and aircraft parts involved in this case were intended for civilian use.
“The investigation and prosecution of national security cases is the top priority of the Department of Justice and my Office,” stated David J. Hale, the U.S. Attorney for the Western District of Kentucky. “We view the circumvention of Iranian export control laws as a very serious matter. The FBI should be commended for its excellent work in disrupting this international scheme and bringing these men to justice.”
The International Emergency Economic Powers Act authorizes the President of the United States to impose economic sanctions on a foreign country when the President declares a national emergency with respect to a national security threat. On March 15, 1995, the President issued an Executive Order declaring the actions and policies of the Government of Iran constituted a national emergency. On May 6, 1995, the President issued an Executive Order imposing the Iran Trade Embargo. On June 23, 2011, the U.S. Department of the Treasury imposed sanctions on Iran Air after designating it as a proliferator of weapons of mass destruction for providing material support and services to Iran’s Islamic Revolutionary Guard Corps.
This case was prosecuted by Assistant United States Attorney Bryan Calhoun of the U.S. Attorney’s Office for the Western District of Kentucky, and Trial Attorney Casey Arrowood of the Counterespionage Section of the Justice Department’s National Security Division. The case was investigated by the Federal Bureau of Investigation, Louisville Division.
Illinois Man Pleads Guilty to Criminal TrespassRead the Press Release
United States Attorney Brendan V. Johnson announced that a Chicago, Illinois man convicted of two counts of Criminal Trespass has pled guilty to the charges and was sentenced on February 27, 2013 by U.S. Magistrate Judge Mark A. Moreno. Steven Nichols, age 42, was sentenced on Count 1 to 30 days in custody and a $5 special assessment to the Victim Assistance Fund. On Count 2, he was sentenced to one year of probation, and ordered to not re-enter the lands of the Rosebud Sioux Indian Reservation.
In the summer of 2011, the Rosebud Sioux Tribe’s Attorney General petitioned the tribal court to bar Nichols, a non-Indian, from entering the lands of the Rosebud Sioux Indian Reservation. On June 10, 2011, Nichols was served with notice of the proceedings. On September 22, 2011, the Rosebud Sioux Tribal Court entered an Emergency Writ of Exclusion barring him from entering the lands of the Rosebud Reservation. On September 22, 2011 the Rosebud Sioux Tribal Council also voted to exclude the Defendant from the Rosebud Reservation. On September 23, 2011, a tribal law enforcement officer served him with the exclusionary order and escorted him off of the reservation.
Tribal law enforcement officers later learned that Nichols had re-entered the reservation. On September 9, 2012 officers apprehended him and again transported him off of the reservation. On January 30, 2013 officers learned Nichols was staying at a residence within the reservation. Officers searched for Nichols and found him hiding in a crawl space of the residence. He was arrested on federal criminal trespass charges and transported off of the reservation and into federal custody.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Tim Maher. Nichols was remanded to the custody of the U.S. Marshal to complete his sentence.
Former Teacher’s Aide Sentenced to 30 Months in Federal Prison on Federal Child Sexual Exploitation ConvictionRead the Press Release
Shanice Adel Lambert Worked in Childress Independent School District
AMARILLO, Texas — A former teacher’s aide in the Childress Independent School District (CISD), Shanice Adel Lambert, was sentenced today by U.S. District Judge Mary Lou Robinson to 30 months in federal prison, following her guilty plea in November 2012 to one count of traveling with the intent to engage in illicit sexual conduct, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Lambert was remanded into custody at the time of her guilty plea, and her custody was continued following the sentencing hearing.
According documents filed in the case, through her employment in the CISD as a teacher’s aide, and through this individual’s association with one of her children, Lambert met “John Doe,” a 15-year-old student at the school where she worked. In February 2012, Lambert engaged in a relationship with “John Doe” which became sexual in nature. On February 11, 2012, Lambert traveled to Altus, Oklahoma, for the purpose, among others, of engaging in illicit sexual conduct with “John Doe.” After arriving in Altus, Lambert rented a motel room and engaged in sexual acts with “John Doe.”
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 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.”
The investigation was conducted by the FBI and the Texas Department of Public Safety. Assistant U.S. Attorney Steven M. Sucsy, of the U.S. Attorney’s Office in Lubbock, Texas, and Assistant U.S. Attorney Christy Drake, of the U.S. Attorney’s Office in Amarillo, Texas, prosecuted.
Former North Carolina Builder Pleads Guilty to Tax ObstructionRead the Press Release
William B. Clayton, a residential builder formerly of Corolla, N.C., pleaded guilty today before Judge Terrence W. Boyle to corruptly obstructing and impeding the due administration of the tax laws, the Justice Department and the Internal Revenue Service (IRS) announced.
According to the indictment, Clayton failed to file federal income tax returns over a six-year period, resulting in the assessment of taxes and penalties and the initiation of IRS collection proceedings. Between May 2007 and August 2010, Clayton took steps to obstruct the IRS’s efforts to collect his unpaid tax liabilities, such as concealing property from the IRS and destroying a former property in Corolla that had been acquired by the government. According to court records, in an effort to pay down Clayton’s tax liabilities, the IRS scheduled a public auction of Clayton’s former property. In the days leading up to the auction, Clayton committed, or caused the commission of, various acts of destruction and demolition at the Corolla property, including destroying an outdoor pool deck and pool house, forcibly removing a guest house from the property and transporting it to a non-consenting neighbor’s property, and forcibly removing cabinets, counter tops, a kitchen island, sinks, toilets, and light fixtures.
Clayton’s sentencing hearing is scheduled for May 28, 2013. Clayton faces a maximum potential penalty of three years’ imprisonment, one year of supervised release, and a $250,000 fine.
The investigation of this case was conducted by IRS-Criminal Investigation. The case is being prosecuted by Trial Attorney Adam Hulbig of the Justice Department’s Tax Division.
Former Key West Bank Employee Indicted for Obstruction of Justice and Disclosing Grand Jury InformationRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces the unsealing of an indictment charging Karen Galo (33, Key West) with two counts of obstruction of justice and one count of disclosing the contents of a federal grand jury subpoena to a third party, with the intent to obstruct a judicial proceeding. If convicted on all counts, Galo faces a maximum penalty of 35 years in federal prison.
According to the indictment, on or about October 9, 2008, Galo, in her capacity as an officer of Key West Bank, notified a third party about the existence and contents of two federal grand jury subpoenas related to an investigation into mortgage fraud and money laundering. Galo disclosed these federal grand jury subpoenas to the third party with the intention of obstructing a judicial proceeding.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It will be prosecuted by Assistant United States Attorney Simon Gaugush.
Former Head of Yonkers Republican Party Pleads Guilty in White Plains Federal Court to Payroll Tax FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Toni Weirauch, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), and George Venizelos, the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), announced that former City of Yonkers Republican Party Chairman ZEHY JEREIS pled guilty today in White Plains federal court to a one-count Information charging him with failing to pay more than $60,000 in payroll taxes to the IRS. JEREIS surrendered this morning in the federal courthouse in White Plains and was presented and arraigned before U.S. Magistrate Judge George A. Yanthis. The case was assigned to U.S. District Judge Edgardo Ramos, who presided over the guilty plea hearing this morning.
Manhattan U.S. Attorney Preet Bharara stated: “On the very day he is surrendering to serve a prison term of 48 months in connection with his conviction on public corruption charges, Zehy Jereis is back in court admitting he defrauded the IRS. Mr. Jereis has a lot to answer for, and today he begins doing so.”
IRS Special Agent-in-Charge Toni Weirauch stated: “The tax law is very clear – employers are responsible for withholding employment taxes from the salaries of their employees. IRS-Criminal Investigation takes payroll tax fraud seriously because it both deprives the United States government of tax revenue and it reduces the future benefits that employees would otherwise be entitled to, including Social Security and Medicare.”
FBI Assistant Director-in-Charge George Venizelos stated: “Jereis, in two separate cases, has been shown to have used a business plan that included cheating. Businessmen who succeed by committing tax fraud and bribing public officials don’t earn our admiration; they go to prison.”
According to the Information and statements made during today’s proceeding:
JEREIS was a part owner and operator of a combination car wash, gas station, auto repair shop, and convenience store located in Brooklyn, New York, known as Atlantic Gas and Wash, LLC (“Atlantic”). Atlantic employed a substantial number of employees to wash and repair cars and to sell gasoline and other products at the convenience store. As an employer, JEREIS was obligated to withhold and pay to the IRS certain payroll taxes and to file accurate quarterly payroll tax forms that reported the wages and other compensation received by employees of Atlantic, and the taxes withheld.
During the tax years 2007 through 2009, JEREIS paid numerous employees of Atlantic, including undocumented aliens, a total of at least $403,127 in cash and failed to report such cash payments to the IRS. He did so in order to avoid his legal obligation to withhold taxes and to pay approximately $61,678 in payroll taxes to the IRS.
JEREIS, 41, of Scarsdale, New York, pled guilty to one count of aiding and assisting in the preparation of false and fraudulent payroll tax returns. He faces a maximum sentence of three years in prison and a maximum fine of the greater of $250,000 or twice the gross gain derived or loss that resulted from the crime. JEREIS will be sentenced by Judge Ramos on June 4, 2013 at 11 a.m.
On March 29, 2012, after a seven-week jury trial before U.S. District Judge Colleen McMahon, JEREIS was convicted of conspiracy, bribery, and extortion in connection with a scheme to bribe a Yonkers City Councilwoman to flip her vote on two real estate development projects. On November 19, 2012, JEREIS was sentenced in that case to 48 months in prison. He is scheduled to begin serving that sentence today.
Mr. Bharara praised the work of the IRS-Criminal Investigation and the FBI in the investigation.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Perry A. Carbone and Jason P.W. Halperin are in charge of the prosecution.
13-067
Preet Bharara, the United States Attorney for the Southern District of New York, Toni Weirauch, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), and George Venizelos, the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), announced that former City of Yonkers Republican Party Chairman ZEHY JEREIS pled guilty today in White Plains federal court to a one-count Information charging him with failing to pay more than $60,000 in payroll taxes to the IRS. JEREIS surrendered this morning in the federal courthouse in White Plains and was presented and arraigned before U.S. Magistrate Judge George A. Yanthis. The case was assigned to U.S. District Judge Edgardo Ramos, who presided over the guilty plea hearing this morning.
Manhattan U.S. Attorney Preet Bharara stated: “On the very day he is surrendering to serve a prison term of 48 months in connection with his conviction on public corruption charges, Zehy Jereis is back in court admitting he defrauded the IRS. Mr. Jereis has a lot to answer for, and today he begins doing so.”
IRS Special Agent-in-Charge Toni Weirauch stated: “The tax law is very clear – employers are responsible for withholding employment taxes from the salaries of their employees. IRS-Criminal Investigation takes payroll tax fraud seriously because it both deprives the United States government of tax revenue and it reduces the future benefits that employees would otherwise be entitled to, including Social Security and Medicare.”
FBI Assistant Director-in-Charge George Venizelos stated: “Jereis, in two separate cases, has been shown to have used a business plan that included cheating. Businessmen who succeed by committing tax fraud and bribing public officials don’t earn our admiration; they go to prison.”
According to the Information and statements made during today’s proceeding:
JEREIS was a part owner and operator of a combination car wash, gas station, auto repair shop, and convenience store located in Brooklyn, New York, known as Atlantic Gas and Wash, LLC (“Atlantic”). Atlantic employed a substantial number of employees to wash and repair cars and to sell gasoline and other products at the convenience store. As an employer, JEREIS was obligated to withhold and pay to the IRS certain payroll taxes and to file accurate quarterly payroll tax forms that reported the wages and other compensation received by employees of Atlantic, and the taxes withheld.
During the tax years 2007 through 2009, JEREIS paid numerous employees of Atlantic, including undocumented aliens, a total of at least $403,127 in cash and failed to report such cash payments to the IRS. He did so in order to avoid his legal obligation to withhold taxes and to pay approximately $61,678 in payroll taxes to the IRS.
JEREIS, 41, of Scarsdale, New York, pled guilty to one count of aiding and assisting in the preparation of false and fraudulent payroll tax returns. He faces a maximum sentence of three years in prison and a maximum fine of the greater of $250,000 or twice the gross gain derived or loss that resulted from the crime. JEREIS will be sentenced by Judge Ramos on June 4, 2013 at 11 a.m.
On March 29, 2012, after a seven-week jury trial before U.S. District Judge Colleen McMahon, JEREIS was convicted of conspiracy, bribery, and extortion in connection with a scheme to bribe a Yonkers City Councilwoman to flip her vote on two real estate development projects. On November 19, 2012, JEREIS was sentenced in that case to 48 months in prison. He is scheduled to begin serving that sentence today.
Mr. Bharara praised the work of the IRS-Criminal Investigation and the FBI in the investigation.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Perry A. Carbone and Jason P.W. Halperin are in charge of the prosecution.
U.S. v. Zehy Jereis Information
Former Hartford Resident Pleads Guilty to Child Sex Trafficking OffenseRead the Press Release
March 4, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that BRUCE DAMICO, 35, formerly residing in Hartford, Providence, R.I., and Queens, N.Y., pleaded guilty today before United States District Judge Stefan R. Underhill in Bridgeport to one count of sex trafficking of a minor.
“The federal penalties for the sex trafficking of minors are appropriately severe, and the U.S. Attorney’s Office and our law enforcement partners are committed to prosecuting these crimes and seeking lengthy sentences,” stated U.S. Attorney Fein. I commend the FBI and Bloomfield Police for the coordinated effort that has brought this defendant to justice.”
According to court documents and statements made in court, DAMICO recruited, harbored and transported women and girls to engage in prostitution. As a part of his prostitution business, DAMICO posted Internet advertisements offering the women and girls for commercial sex acts, and DAMICO was paid by each woman and girl $100 per day for maintaining the advertisements. DAMICO booked hotel rooms where the women and girls would engage in commercial sex acts, and he transported, or arranged the transportation of, the women and girls to prostitution appointments.
In pleading guilty, DAMICO admitted that between June 2009 and January 2010, his prostitution enterprise knowingly employed a girl who was under the age of 18. DAMICO posted pictures of the minor victim on the Internet to advertise her prostitution services, and he and others working for him transported the minor victim between Connecticut and surrounding states to engage in prostitution.
Judge Underhill has scheduled sentencing for May 24, 2013, at which time DAMICO faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
DAMICO has been detained since his arrest by the Bloomfield Police on January 22, 2010.
This matter is being investigated by the Federal Bureau of Investigation and the Bloomfield Police Department. The case is being prosecuted by Assistant United States Attorney David E. Novick.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Foreign National Convicted in Multi-Million, Multi-State Criminal OperationRead the Press Release
HOUSTON – Sameh Khaled Danhach, also known by many other aliases, has been convicted of all six counts as related to the interstate transportation of stolen goods and obstruction of justice, United States Attorney Kenneth Magidson announced today. The jury returned its verdicts after just an hour of deliberation following a five-day trial.
Danhach, who resides in Houston, is a legal permanent resident of the United States from Lebanon. The evidence demonstrated he was a high-ranking fence involved in a multi-million dollar, multi-state criminal enterprise where he received stolen over-the-counter (OTC) medicine, baby formula, health and beauty supplies and shampoo for later re-packaging and shipping. This criminal enterprise, among other things, engaged in using “boosters,” primarily undocumented Central Americans, to steal over-the-counter medication and baby formula. A “booster” is a criminal who steals goods and merchandise not for personal use but for re-sale to a “fence” for a fraction of its retail value. A “fence” is a person who receives stolen goods and merchandise from “boosters” and others. The “fence” then re-sells the stolen goods and merchandise to third parties for a profit.
The scope of this criminal enterprise ranged from April 2008 to February 2012.
Danhach owned and operated Houston-located SKD Trading Inc. and Lifetime Wholesale Inc., both shell companies operated under several other names used to facilitate their illegal activity. He hired undocumented aliens from Central and South America to travel throughout the United States to steal the OTC, beauty products and baby formula from major retail chain stores such as Target, Wal-Mart, CVS and Walgreens. He facilitated this interstate travel by renting cars for the boosters and by paying the boosters in cash for the stolen merchandise.
To avoid detection by law enforcement, the undocumented aliens would ship the stolen merchandise to Danhach using fraudulent FedEx accounts in his shell company names. As a result of the fraudulent accounts, FedEx suffered a loss of $540,000. A representative from FedEx testified at trial about the sophistication of Danhach’s scheme stating that Danhach and others set up approximately 29 accounts using various names, company names and addresses without paying for any of the shipments.
Once the stolen merchandise arrived at Danhach’s Houston warehouse, he had his “employees,” remove any retail store identifying labels and security features. Danhach would then have the stolen products repackaged and then re-sold to wholesalers across the nation.
A search warrant was executed on March 1, 2012, at Danhach’s Houston warehouse, at which time agents seized criminal ledgers maintained by Danhach. The ledgers specifically showed the stolen merchandise coming into the warehouse, the retail labels on the stolen merchandise being removed and the stolen merchandise being repackaged and shipped back out of the warehouse. At the time of the search, Danhach instructed his co-conspirator to hide a video recording from the warehouse’s security cameras in the warehouse’s ceiling.
Several cooperating witnesses testified on behalf of the United States, including one of his “boosters, ” who admitted that between August 2011 and February 2012, he traveled around the Houston area and the state in cars rented by Danhach, stealing OTC medication and beauty supplies from Wal-Marts. In a six-month-period, the witness admitted he was responsible for stealing more than $230,000 worth of merchandise from Wal-Mart.
United States District Court Judge Sim Lake, who presided over the trial has set sentencing for April 25, 2013. Danhach faces up to five years for the one count of conspiracy to transport stolen merchandise in interstate commerce as well as up to 10 years in as to each of the three convictions for transporting stolen merchandise. Danhach further faces a maximum sentence of 20 years for each of the two obstruction of justice counts. All charges also include a possible $250,000 fine. Danhach could also face the loss of his legal permanent residence status and deportation from the United States.
He will remain in custody pending his sentencing hearing.
This matter was investigated by the FBI, Houston Police Department-Major Offenders Division and the Harris County Sheriff’s Office, with the cooperation of CVS, Walgreens, Wal-Mart, Mead Johnson and Abbott Nutrition. The case was prosecuted by Assistant United States Attorneys Kebharu Smith, Joe Magliolo and Albert Ratliff.
Florida Resident Sentenced to 33 Months in Prison for Securities and Investment Fraud SchemeRead the Press Release
NEWARK, N.J. – Scott Kupersmith, formerly of Alpine, N.J., and now living in Marco Island, Fla., was sentenced to 33 months in prison for engaging in a sophisticated securities and investment fraud scheme, U.S. Attorney Paul J. Fishman announced.
Kupersmith, 46, previously pleaded guilty before U.S. Magistrate Judge Patty Shwartz in Newark federal court to an Information charging him with securities fraud. U.S. District Judge Katharine S. Hayden imposed the sentence in Newark federal court.
According to documents filed in the case and statements made in court:
Kupersmith engaged in a securities fraud scheme commonly referred to as “free-riding,” in which a customer buys or sells securities in a brokerage account without the cash or securities to cover the trades. Kupersmith and his associates opened more than half-a-dozen brokerage accounts at brokerage firms located in New Jersey and across the country. To induce the brokerage firms to open these accounts, Kupersmith falsely represented that he had a personal net worth of approximately $5 million and that he controlled a hedge fund in Manhattan with assets worth more than $10 million. Once these accounts were opened, Kupersmith used them to make millions of dollars’ worth of securities trades. When the trades were successful, Kupersmith kept the profits. When the trades were not profitable, Kupersmith would walk away from the trades, leaving the brokerage firms to settle the trades on Kupersmith’s behalf. The brokerage firms collectively sustained $1 million in losses.
Kupersmith funded the scheme, in part, with money that he solicited from investors. He falsely represented to them that he ran a successful Manhattan hedge fund that had an annual return of about 30 percent and promised investors grossly unrealistic returns.
In addition to a prison term, Judge Shwartz sentenced Kupersmith to three years of supervised release and fined him $1.8 million.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez in Newark, for the investigation leading to today’s sentence. He also thanked the U.S. Securities and Exchange Commission’s Division of Enforcement in New York for its assistance.
The government is represented by Assistant U.S. Attorney Christopher J. Kelly of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.13-104
Defense counsel: Lisa Mack Esq., Assistant Federal Public Defender, Newark
Federal Grand Jury in Fort Wayne Returns IndictmentRead the Press Release
Fort Wayne, INCThe United States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returned the following Indictment on February 27, 2013: Curtis Wittwer, 65, of Spencerville, Indiana, is charged in a four count Indictment with two counts of maintaining a drug-involved premises from on or about September 12, 2012, to on or about September 25, 2012, possessing a firearm in furtherance of a drug trafficking crime, and being an unlawful user of a controlled substance in possession of a firearm on or about September
25, 2012. The Indictment also seeks forfeiture of U.S. currency, firearms and ammunition. These charges were filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Indiana State Police, IMAGE Drug Task Force, Allen County Police Department and the DeKalb County Prosecutor’s Office. This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony W. Geller.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
##END##Federal Court Bars Nashville, Tenn., Mo’ MoneyTaxes Licensee from Preparing Tax ReturnsRead the Press Release
A federal court permanently barred Toney Fields and Trumekia Shaw, who do business as Fields Mo’ Money Taxes in Nashville, Tenn., from preparing federal tax returns, the Justice Department announced today. The civil injunction order was signed by Judge Kevin H. Sharp of the U.S. District Court for the Middle District of Tennessee. It found that the defendants engaged repeatedly in fraudulent conduct that interfered with enforcement of federal tax laws.
The government complaint in the civil injunction lawsuit alleged that Fields is a licensee of Mo’ Money Taxes LLC and MoneyCo USA LLC, both located in Memphis, Tenn. According to the complaint Fields and Shaw get an improper jump on their competition by opening Mo’ Money Taxes in Nashville immediately after Christmas, before the tax year ends. According to the complaint, Fields and Shaw use customers’ end-of-year pay stubs to prepare tax returns, before employers have issued Internal Revenue Service (IRS) W-2 wage-statement forms to employees. Preparing tax returns based on pay stubs rather than proper W-2 Forms violates IRS rules. Fields and Shaw allegedly use the pay stubs to create fake W-2 Forms to include with the returns. End-of-year pay stubs frequently omit income and distributions that are shown on employer-issued W-2 Forms. This inevitably results in errors on federal tax returns.
The complaint alleged that Fields and Shaw inflate or claim false tax credits on customers’ tax returns. According to the complaint, Fields and Shaw frequently claim improper dependent exemptions in order to claim inflated earned-income credits or child tax credits for their customers. The complaint also alleged that the defendants include false filing statuses and bogus claims for charitable contributions on customers’ returns. The complaint says the government estimates that the defendants’ misconduct may have caused revenue losses of over $5 million from the more than 1,100 tax returns they prepared in 2011.
The IRS lists return preparer fraud as one of its “Dirty Dozen” tax scams .
In the past decade the Justice Department’s Tax Division has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters. Information about these cases is available on the Justice Department website .
Related Materials:
United States v. Toney Fields, et al.
Order of Permanent Injunction (PDF)FBI Reunites Children with Mother After Eighteen Months in CaptivityRead the Press Release
SAN JOSE - Two children, both United States citizens, were reunited with their mother, a Mexican national, after spending more than eighteen months in captivity in Mexico, United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson announced.
On December 19, 2012, a federal grand jury returned an indictment against three Mexican nationals, Jesus Salinas and Patricia Delatorre, of Mount Vernon, Washington, and Maria Guadalupe Valenzuela Castaneda, of Juarez, Mexico. According to the indictment, in June, 2011, Salinas and Delatorre agreed, in exchange for money, to transport the children from Mexico, where the children were living at the time, to Washington State, where the mother of the children was living. Rather than return the children to the United States, however, in July, 2011, Salinas and Delatorre transported the children to Castaneda, in Juarez, Mexico. The conspirators then demanded more money from the mother for the return of the children. For months, the mother sent payments to the conspirators, but the children were never returned. The conspirators also threatened to kill the mother if she contacted law enforcement or if she went to Juarez in search of the children.
On December 11, 2012, the FBI, together with Mexican law enforcement, located the children in Juarez, Mexico, in the custody of Castaneda and placed the children into the temporary care of Mexican social services.
On Friday, March 1, 2013, the children, through the work of the FBI, the Watsonville Police Department, the National Center for Missing and Exploited Children, and the United States Department of State, were repatriated from Mexico to the United States, and reunited with their mother in San Jose, California.
“I commend the work of the FBI, local law enforcement, and the Mexican authorities. Because of their hard work and collaboration, a family was reunited this weekend.”
“The FBI worked closely with our law enforcement partners in California, Washington, Texas and Mexico to safely recover these children from their kidnappers and reunite them with their mother,” said FBI Special Agent in Charge Johnson. “We will continue to actively pursue and bring to justice those individuals who kidnap children and extort family members for money. These crimes take a terrible toll on the victims and we will hold the perpetrators accountable.”
The indictment charges the defendants with one count of kidnapping minor victims in interstate and foreign commerce, in violation of 18 U.S.C. §§ 1201(a)(1), (c) and (g)(1); and two counts of unlawful seizure and detention of a United States national, in violation of 18 U.S.C. § 1203(a). The statutory penalty for the count of kidnapping a minor victim is a mandatory minimum sentence of twenty (20) years imprisonment, and a maximum term of up to life, and a maximum fine of $250,000. The maximum statutory penalty for each count of unlawful seizure and detention of a U.S. national is life imprisonment, and a maximum fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
On January 4, 2013, Salinas and Delatorre were arrested by the FBI in Mount Vernon, Washington, and were ordered detained by Honorable Brian A. Tsuchida, in Seattle, Washington. On January 28, 2013, Salinas and Delatorre made their initial appearances before Judge Howard R. Lloyd in San Jose, California, where the defendants were arraigned, and ordered detained pending trial. The matter is assigned to Judge Edward J. Davila for trial purposes. The next scheduled appearance is March 11, 2013 at 1:30 p.m. for further status. Salinas and Delatorre remain in custody.
An arrest warrant was issued for Maria Guadalupe Valenzuela Castaneda. Anyone with information about her whereabouts should contact the FBI at (408) 369-8000 (San Jose field office), or (915) 832-5000 (El Paso, Texas field office).
AUSA Daniel Kaleba is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Elise Etter. The prosecution is the result of the investigation of the Federal Bureau of Investigation, the Watsonville Police Department, the Department of Homeland Security Customs and Border Protection, and the United States Department of State.
Please note, an indictment contains only allegations against an individual and, as with all defendants, the defendants must be presumed innocent unless and until proven guilty.
Elisa Baker Sentenced to 10 Years in Prison for Conspiracy to Distribute Prescription DrugsRead the Press Release
STATESVILLE, N.C. – U.S. District Court Judge Richard Voorhees sentenced today Elisa Annette Baker, 44, of Hickory, N.C., to serve 120 months in prison for conspiracy with intent to distribute prescription drugs, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Baker was also ordered to serve three years under court supervision once she serves her prison term.
U.S. Attorney Tompkins is joined in making today’s announcement by Harry S. Sommers, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office; Greg McLeod, Director of the North Carolina State Bureau of Investigation (SBI); and Chief Tom Adkins of the Hickory Police Department.
According to filed documents and court proceedings, from 2006 to October 2010, Baker conspired with others to distribute and possess with intent to distribute the controlled substances oxycodone, hydrocodone and alprazolam. Baker also maintained residences in Granite Falls, Hudson and Hickory, N.C. for the purpose of distributing the prescription drugs. According to plea documents and today’s sentencing hearing, Baker possessed approximately 12,000 dosage units of oxycodone, 10,000 dosage units of hydrocodone, and 29,000 dosage units of alprazolam. Filed documents indicate that Baker distributed prescription drugs to one of the co-conspirators, a relative, and several of his high school friends, when he was 16 years old. According to court documents, Baker obtained the prescription drugs through multiple prescriptions from physicians and from other unidentified sources in Catawba County. In January 2012, Baker pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute a controlled substance.
Baker is currently serving an 18-year state sentence for second degree murder in the death of Zahra Baker. At today’s sentencing hearing, Judge Voorhees ordered that Baker completes her state sentence before she begins serving her federal sentence. Federal sentences are served without the possibility of parole.
The investigation was handled by the DEA, NC SBI and the Hickory Policy Department. The prosecution was handled by Assistant United States Attorneys Dana O. Washington and Cortney S. Escaravage.
Eagle Butte Man Pleads Guilty to Firearm OffenseRead the Press Release
United States Attorney Brendan V. Johnson announced that Kimo Little Bird, Sr., age 31, of Eagle Butte, South Dakota appeared before U.S. District Judge Roberto A. Lange on February 26, 2013 and pled guilty to Count II of an Indictment that charged him with being a Felon in Possession of a Firearm. The maximum penalty upon conviction is 10 years' imprisonment, a $250,000 fine or both, and a period of supervised release of 3 years.
The conviction stems from an incident in December of 2012 when the Defendant was arrested for an outstanding tribal warrant. While making the arrest, law enforcement found a firearm at the residence where the Defendant was staying. The Defendant admitted that the firearm belonged to him and that he knew he was prohibited from possessing firearms because he had previously been convicted of a felony offense.
The investigation was conducted by the U.S. Fish & Wildlife, Bureau of Alcohol, Tobacco, Firearms & Explosives, Federal Bureau of Investigation, and the Bureau of Indian Affairs, Standing Rock Agency. The case is being prosecuted by Assistant U.S. Attorney Troy Morley.
A presentence investigation was ordered and a sentencing date was set for May 20, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
District Man Sentenced to 16-Month Prison Term in Break-in at Public Charter School–At Time of Offense, Defendant Was on Probation for Earlier Robbery-Read the Press Release
WASHINGTON - Thomas Asa Fields, 19, of Washington, D.C., was sentenced today to 16 months in prison on a charge stemming from a break-in last year at a public charter school in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Fields pled guilty in January 2013 in the Superior Court of the District of Columbia to attempted second-degree burglary. He was sentenced by the Honorable Robert I. Richter. Upon completion of his sentence, Fields will be placed on three years of supervised release.
According to the government’s evidence, on Sept. 22, 2012, at about 11:40 p.m., the Metropolitan Police Department (MPD) responded to the Options Public Charter School in the 1300 block of E Street NE for a report of an ongoing burglary. At the scene, the police set up a perimeter and observed Fields and two other suspects fleeing from one of the school's buildings. The police pursued these individuals and caught up to them. The police canvassed the school area and recovered a backpack, with four laptops belonging to the school. The backpack was located where the police had observed Fields leaving the building.
Subsequent investigation revealed that Fields was on probation for a prior robbery conviction and that he was wearing a GPS monitoring device as part of his probation conditions. Tracking information showed that he was inside the school at the time of the reported burglary. A second defendant earlier pled guilty to charges in the case.
In the robbery case, Fields previously pled guilty in the Superior Court of the District of Columbia to snatching an iPhone from an unsuspecting victim. He was placed on probation in July 2012. After Fields was re-arrested for the burglary matter, the Honorable Lynn Leibovitz revoked his probation and sentenced him to two years in prison.
Judge Richter ordered the sentence for the attempted burglary charge to be run consecutively to the sentence in the robbery matter, meaning that Fields now faces a total of three years and four months of incarceration.
In announcing today's sentence, U.S. Attorney Machen commended the work of the Metropolitan Police Department. He also acknowledged the efforts of Assistant U.S. Attorney John C. Truong, who investigated and prosecuted the case.
13-081Developer Eljwaidi Sentenced to Almost Two Years in Prision for Federal Fraud ConvictionRead the Press Release
LAS VEGAS, Nev. – A man who fraudulently enticed persons to give him almost $2 million for the development of a local commercial real estate project that never materialized, was sentenced today to 21 months in federal prison and ordered to pay $1.8 million in restitution, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Jean Marc Eljwaidi, aka Jean Marc Joveidi, 44, of Las Vegas, was sentenced by U.S. District Judge James C. Mahan. Eljwaidi pleaded guilty in November to one count of wire fraud.
From approximately November 2008 to June 2009, Eljwaidi obtained funds from investors for the development of a commercial real estate project at Interstate 215 and Russell Road in Las Vegas. In November 2008, Eljwaidi knew that the project could not be completed, but nevertheless enticed persons to continue to invest in the project. Ejwaidi provided the victim investors with promissory notes stating that he would use their investments to develop the project and that he would return their investments within a few months with an approximately 25 to 75 percent profit. In actuality, Eljwaidi knew that he would use the funds to pay his personal expenses and to maintain his affluent lifestyle, and to pay extension fees to keep the land from foreclosure. When the time came to pay the victim investors, Eljwaidi delayed repayment by soliciting more money from the investors or by repaying them with nominal amounts, or by avoiding them. As a result, the victim investors were never repaid or repaid nominal sums. The loss to the victim investors was approximately $1.8 million.
Eljwaidi was permitted to self-report to federal prison by June 3, 2013.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Roger Yang.
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.
Department of Justice Settles Two Civil Complaints Against Two Employers for Violations of Federal Statutes Relating to Military Reserve DutyRead the Press Release
A settlement agreement was filed in U.S. District Court in Denver resolving a complaint alleging that two employers, Delaware Resource Group of Oklahoma LLC (DRG), and FlightSafety Services Corporation (FlightSafety), violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by not paying money into two U.S. Air Force veterans’ 401(k) plans, announced Assistant Attorney General for the Civil Rights Division Thomas E. Perez and U.S. Attorney for the District of Colorado John Walsh.
USERRA prohibits employers from discriminating against or taking any adverse employment action against any person because that person has performed service in the uniformed services. USERRA also allows returning service members to make “catch up” contributions to their civilian employers’ 401(k) retirement plans, and receive the employers’ matching contributions that were missed while they were on military leave. The Justice Department’s Civil Rights Division and the U.S. Attorney’s Offices have given a high priority to the enforcement of service members’ rights under USERRA.
The two veterans, Michael J. Sipos and Gary D. Smith, are the plaintiffs in this case. According to the complaint, their employers, DRG and FlightSafety, violated USERRA by not allowing the veterans to make “catch up” contributions to their company’s 401(k) plans upon their return from duty and not matching contributions that the veterans missed while on active duty in the Air Force.
Under the settlement agreement, the defendants, DRG and FlightSafety, will allow the plaintiffs to make their “catch up” contributions to their respective 401(k) plans. In addition, DRG and FlightSafety will provide matching employer contributions to each of the veterans’ 401(k) plans.
“We rely on our servicemembers to protect us, and the Department of Justice is committed to ensuring that their civilian employment benefits are protected as well,” said Assistant Attorney General Perez. “The department commends FlightSafety and DRG for agreeing to resolve this matter amicably without contested litigation, which shows a good faith commitment by the companies to ensure that they are in compliance with USERRA.”
The case was litigated by Assistant U.S. Attorney Juan G. Villaseñor in the U.S. Attorney’s Office for the District of Colorado, in collaboration with the Civil Rights Division of the Justice Department. The lawsuit was filed after the Veterans’ Employment and Training Service (VETS) of the Department of Labor referred Sipos’ and Smith’s complaints to the Justice Department upon completion of its investigation and failed settlement efforts. The Departments of Labor and Justice work cooperatively together to protect the jobs and benefits of National Guard and Reserve service members upon their return to civilian life. More information about USERRA is available at www.dol.gov/vets/programs/userra/main.htm .
Related Materials:
FlightSafety Complaint
FlightSafety Settlement AgreementDepartment 0f Justice Settles Civil Complaint Against Two Employers for Violations of Federal Statutes Relating to Military ServiceRead the Press Release
DENVER – A settlement agreement was filed in U.S. District Court in Denver resolving a complaint alleging that two employers, Delaware Resource Group of Oklahoma LLC (DRG), and FlightSafety Services Corporation (FlightSafety), violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by not paying money into two U.S. Air Force veterans’ 401(k) plans, announced Assistant Attorney General for the Civil Rights Division Thomas E. Perez and U.S. Attorney for the District of Colorado John Walsh.
USERRA prohibits employers from discriminating against or taking any adverse employment action against any person because that person has performed service in the uniformed services. USERRA also allows returning service members to make “catch up” contributions to their civilian employers’ 401(k) retirement plans, and receive the employers’ matching contributions that were missed while they were on military leave. The Justice Department’s Civil Rights Division and the U.S. Attorney’s Offices have given a high priority to the enforcement of service members’ rights under USERRA.
The two veterans, Michael J. Sipos and Gary D. Smith, are the plaintiffs in this case. According to the complaint, their employers, DRG and FlightSafety, violated USERRA by not allowing the veterans to make “catch up” contributions to their company’s 401(k) plans upon their return from duty and not matching contributions that the veterans missed while on active duty in the Air Force.Under the settlement agreement, the defendants, DRG and FlightSafety, will allow the plaintiffs to make their “catch up” contributions to theirrespective 401(k) plans. In addition, DRG and FlightSafety will provide matching employer contributions to each of the veterans’ 401(k) plans.
“We rely on our servicemembers to protect us, and the Department of Justice is committed to ensuring that their civilian employment benefits are protected as well,” said Assistant Attorney General Perez. “The department commends FlightSafety and DRG for agreeing to resolve this matter amicably without contested litigation, which shows a good faith commitment by the companies to ensure that they are in compliance with USERRA.”
The case was litigated by Assistant U.S. Attorney Juan G. Villaseñor in the U.S. Attorney’s Office for the District of Colorado, in collaboration with the Civil Rights Division of the Justice Department. The lawsuit was filed after the Veterans’ Employment and Training Service (VETS) of the Department of Labor referred Sipos’ and Smith’s complaints to the Justice Department upon completion of its investigation and failed settlement efforts. The Departments of Labor and Justice work cooperatively together to protect the jobs and benefits of National Guard and Reserve service members upon their return to civilian life. More information about USERRA is available at www.dol.gov/vets/programs/userra/main.htm
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Department 0f Justice Settles Civil Complaint Against Two Employers for Violations of Federal Statutes Relating to Military ServiceRead the Press Release
DENVER – A settlement agreement was filed in U.S. District Court in Denver resolving a complaint alleging that two employers, Delaware Resource Group of Oklahoma LLC (DRG), and FlightSafety Services Corporation (FlightSafety), violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by not paying money into two U.S. Air Force veterans’ 401(k) plans, announced Assistant Attorney General for the Civil Rights Division Thomas E. Perez and U.S. Attorney for the District of Colorado John Walsh.
USERRA prohibits employers from discriminating against or taking any adverse employment action against any person because that person has performed service in the uniformed services. USERRA also allows returning service members to make “catch up” contributions to their civilian employers’ 401(k) retirement plans, and receive the employers’ matching contributions that were missed while they were on military leave. The Justice Department’s Civil Rights Division and the U.S. Attorney’s Offices have given a high priority to the enforcement of service members’ rights under USERRA.
The two veterans, Michael J. Sipos and Gary D. Smith, are the plaintiffs in this case. According to the complaint, their employers, DRG and FlightSafety, violated USERRA by not allowing the veterans to make “catch up” contributions to their company’s 401(k) plans upon their return from duty and not matching contributions that the veterans missed while on active duty in the Air Force.Under the settlement agreement, the defendants, DRG and FlightSafety, will allow the plaintiffs to make their “catch up” contributions to theirrespective 401(k) plans. In addition, DRG and FlightSafety will provide matching employer contributions to each of the veterans’ 401(k) plans.
“We rely on our servicemembers to protect us, and the Department of Justice is committed to ensuring that their civilian employment benefits are protected as well,” said Assistant Attorney General Perez. “The department commends FlightSafety and DRG for agreeing to resolve this matter amicably without contested litigation, which shows a good faith commitment by the companies to ensure that they are in compliance with USERRA.”
The case was litigated by Assistant U.S. Attorney Juan G. Villaseñor in the U.S. Attorney’s Office for the District of Colorado, in collaboration with the Civil Rights Division of the Justice Department. The lawsuit was filed after the Veterans’ Employment and Training Service (VETS) of the Department of Labor referred Sipos’ and Smith’s complaints to the Justice Department upon completion of its investigation and failed settlement efforts. The Departments of Labor and Justice work cooperatively together to protect the jobs and benefits of National Guard and Reserve service members upon their return to civilian life. More information about USERRA is available at www.dol.gov/vets/programs/userra/main.htm
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Defendant Convicted of Providing Material Support to TerrorismRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and the members of the South Florida Joint Terrorism Task Force (“JTTF”), announced today that a Miami federal jury today convicted Hafiz Muhammed Sher Ali Khan, 77, on all counts in the indictment charging him with providing material support to terrorists, including the Pakistani Taliban. According to public records, defendant Hafiz Khan was the Imam at the Miami Masjid in Miami, Florida. The indictment did not allege that the masjid participated in the defendant’s scheme.
More specifically, after two months of trial, the jury convicted Khan on charges of conspiring to provide, and providing, material support to a conspiracy to murder, maim and kidnap persons overseas, 18 U.S.C. ' 2339A, and conspiring to provide material support to a foreign terrorist organization, specifically, the Pakistani Taliban, 18 U.S.C. ' 2339B. Sentencing has been scheduled for May 30, 2013. At sentencing, the defendant faces up to 15 years’ imprisonment on each count.
U.S. Attorney Wifredo A. Ferrer stated, “Despite being an Imam, or spiritual leader, Hafiz Khan was by no means a man of peace. Instead, he acted with others to support terrorists to further acts of murder, kidnapping and maiming. But for law enforcement intervention, these defendants would have continued to transfer funds to Pakistan to finance the Pakistani Taliban, including its purchase of guns. Dismantling terrorist networks is a top priority for this Office and the Department of Justice.”
“Today, terrorists have lost another funding source to use against innocent people and U.S. interests,” said Michael B. Steinbach, Special Agent in Charge of FBI Miami. “We will not allow this country to be used as a base for funding terrorists. Individuals such as Hafiz Muhammed Sher Ali Khan, who support terror, represent a threat to our safety and provide an example of why the FBI’s number one priority is counterterrorism.”
The Pakistani Taliban, also known as Tehrik e Taliban Pakistan, Tehrik I Taliban, Tehrik-e-Taliban, and Tehreek e Taliban, is a Pakistan-based terrorist organization formed in or around December 2007 by an alliance of radical Islamist militants. On September 1, 2010, the United States Department of State formally designated the Pakistani Taliban as a Foreign Terrorist Organization, under Section 219 of the Immigration and Nationality Act.
According to the evidence at trial, Khan, with the help of persons in South Florida and Pakistan, sent money and other material support to Pakistani Taliban contacts and sympathizers overseas. The Pakistani Taliban’s objectives include resistance against the lawful Pakistani government, enforcement of strict Islamic law known as Sharia, and opposition to the United States and coalition armed forces fighting in neighboring Afghanistan. The Pakistani Taliban has committed numerous acts of violence in Pakistan and elsewhere, including suicide bombings which resulted in the death of civilians as well as Pakistani police, army, and government personnel, and also provided financing and training for the attempted bombing of New York City’s Times Square in May 2010.
According to the evidence at trial, Khan sought to aid the Pakistani Taliban’s fight against the Pakistani government and its perceived allies, including the United States, by supporting acts of murder, kidnapping, and maiming in Pakistan and elsewhere, in order to displace the lawful government of Pakistan and to establish Sharia. Khan transferred money from the United States to Pakistani Taliban supporters in Pakistan, primarily using bank accounts and wire transfer services in the United States and Pakistan. These funds were intended to purchase guns for the Pakistani Taliban, to sustain militants and their families, and generally to promote the Pakistani Taliban’s cause. Khan also solicited and collected money in the United States for that purpose, taking great care to conceal his activities. In one recorded conversation introduced as evidence at trial, Khan stated that money cannot be sent openly to the Pakistani Taliban, but must instead be sent covertly through its supporters. Khan also used a madrassa he founded in Pakistan (where he was born) to provide shelter and other support to Pakistani Taliban militants. In another recorded conversation introduced as evidence at trial, Khan claimed that children from his madrassa have gone to train to kill Americans in neighboring Afghanistan.
Mr. Ferrer commended the investigative efforts of the FBI, U.S. Customs and Border Protection, U.S. Department of State, Broward Sheriff’s Office, Miami-Dade Police, City of Miami Police, City of Miramar Police, City of Margate Police, and the Florida Department of Environmental Protection, and the members of the South Florida Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorneys John Shipley, Sivashree Sundaram, and Michael Patrick Sullivan, from the U.S. Attorney’s Office for the Southern District of Florida, and Trial Attorney Bridget Behling from the Counterterrorism Section of the Justice Department’s National Security Division.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Correctional Officer Pleads Guilty to Assaulting InmateRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh pleaded guilty in federal court to a charge of deprivation of civil rights, United States Attorney David J. Hickton announced today.
Arii Metz, 34, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that Metz, while acting as a correctional officer with the Allegheny County Jail, used excessive force in the assault of an inmate on Oct. 13, 2010, and thereby violated his civil rights.
Judge Fischer scheduled sentencing for June 18, 2013, at 9:00 a.m. The law provides for a maximum sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Amy L. Johnston is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Arii Metz.
Consumer Awareness and Protection Expo/Shred EventRead the Press Release
Free Event for the Public
KNOXVILLE, Tenn. – On Saturday, Mar. 23, 2013, a Consumer Awareness and Protection Expo/Shred Event will be held at the Knoxville Expo Center, 5441 Clinton Highway, Knoxville, Tenn. This event is part of National Consumer Protection Week (NCPW), which is a worldwide campaign, led by the Federal Trade Commission to encourage consumers across the country to take full advantage of their consumer rights. In support of NCPW, the U.S. Postal Inspection Service and the Tennessee Highway Patrol, along with other community partners are hosting this free event.
NCPW is a collaborative effort between more than 20 state and federal government agencies, including the U.S. Postal Inspection Service, Internal Revenue Service, and Securities and Exchange Commission, as well as non-government groups such as the Better Business Bureau.
The event will provide the general public with information on how they can protect themselves from becoming a victim of various types of fraud, including preventing identity theft. Identity theft continues to be one of the fastest growing crimes in the United States. It is important for consumers to recognize that identity theft is not just a financial crime. This crime varies widely, and can include financial identity theft (checking and/or credit card fraud), criminal identity theft, governmental identity theft, and medical identity theft.
Identity theft is a crime in which an impostor obtains key pieces of personal identifying information (PII) such as Social Security numbers and driver's license numbers and uses them for their own personal gain. It can start with lost or stolen wallets, stolen mail, a data breach, computer virus, “phishing” scams, or paper documents thrown out by you or a business (dumpster diving).
Since shredding documents containing these key pieces of personal information rather than throwing them in the trash is one way to prevent identity theft, participants can bring unwanted documents to the event to be shredded free of charge.
Agencies participating in the event include the U.S. Postal Inspection Service, U.S. Attorney’s Office, Federal Bureau of Investigation, U.S. Secret Service, Internal Revenue Service, Tennessee Department of Safety and Homeland Security, Knoxville Police Department Internet Crimes Against Children Task Force, and others.
For additional information regarding this event, please contact Postal Inspector Wendy Boles at 865-692-0795.
Colorado Man Indicted for LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Colorado Springs, Colorado man has been indicted by a federal grand jury for allegedly stealing the credit card of another person at Ellsworth Air Force Base and making withdrawals on September 9, 2012.
Scott Stewart, age 19, was indicted by a federal grand jury on November 19, 2012 for Larceny. Stewart 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 one year of imprisonment and a $100,000 fine. The charge is merely an accusation and Stewart is presumed innocent until and unless proven guilty.
The investigation is being conducted by the United States Air Force. Assistant U.S. Attorney Wayne Venhuizen is prosecuting the case. Stewart was released on bond pending trial. A trial date has been set for April 30, 2013.
Chicago Investment Advisor Sentenced to Six Years in Prison for Causing Clients to Lose $1.6 Million in Fraud SchemeRead the Press Release
CHICAGO — A former Chicago investment advisor was sentenced today to six years in federal prison for an investment fraud scheme that swindled clients, causing them to lose more than $1.6 million. The defendant, DIMITRY VISHNEVETSKY, pleaded guilty last August to wire fraud and bank fraud, admitting that he misappropriated funds raised from investors for his own purposes, including to pay for such expenses as mortgage and car payments, travel and vacations, restaurant bills, athletic club dues, and to make trades for himself, while using additional investor funds to make Ponzi-type payments to clients.
Vishnevetsky, 34, of Chicago, was ordered to pay $1,684,763 in restitution, nearly all of it to a half-dozen investment clients, by U.S. District Judge Ruben Castillo, who likened Vishnevetsky’s conduct to a financial storm that devastated the lives of his victims. Vishnevetsky was ordered to begin serving his sentence on May 28.
“This offense was entirely unnecessary,” the government argued at sentencing. “There was no good reason for this fraud, and the defendant, who was skilled in the world of finances could have gotten a legitimate job. In fact, [he] obtained a Bachelor’s degree in business administration, and attended the University of Oxford.”
According to the court records, Vishnevetsky offered and purported to sell investments, including investments in funds which promised to trade S&P Futures, and a fund that could trade in things such as equities, futures contracts, and commodities, as well as brokerage and management services for some investors, and promissory notes, through Hodges Trading, LLC, and Oxford Capital, LLC, which he controlled. Three purported Oxford funds existed in name only, as did the promissory notes, which Vishnevetsky described as London Interbank Offered Rate (LIBOR) adjusted notes.
Between September 2006 and March 2012, Vishnevetsky made false representations about the profitability of his prior and current trading, the use of the invested funds, the risks involved, the expected and actual returns on investments and trading, as well as false representations about the funds he purportedly traded. For example, Vishnevetsky created and provided some investors fraudulent trading results showing profits as high as 36 percent per year. In fact, any trades that Vishnevetsky actually made consistently resulted in losses, not profits.
The bank fraud conviction resulted from false statements Vishnevetsky made between 2007 and 2010 to Merrill Lynch Bank & Trust concerning his income and assets to cause the bank to issue, and later modify, two loans totaling approximately $519,500 to purchase a condominium in Chicago.
The government is being represented by Assistant U.S. Attorney Jacqueline Stern.
The sentence was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Commodity Futures Trading Commission, which filed a companion civil enforcement lawsuit, assisted in the investigation.
The investigation falls under the umbrella of the Financial Fraud Enforcement Task Force, which includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit: StopFraud.gov.
Canton Man Sentenced to 14 Years in Prison for Eight Bank RobberiesRead the Press Release
A Canton man was sentenced to more than 14 years in prison after previously pleading guilty to eight bank robberies in Pennsylvania and Ohio, 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.
Benjamin G. Gates, age 34, was sentenced to 151 months in prison by U.S. District Judge James Gwin.
“This sentence should send a clear message to those who would think about robbing a bank,” Dettelbach said. Our law enforcement partners are to be commended for bringing an end to this wave of bank robberies.”
“This case reflects the valued partnership between the FBI’s Safe Streets Task Force and the citizens of Northern Ohio,” Anthony said. “Subsequent to the media’s rapid release of key information, the public provided invaluable leads resulting in the arrest of Benjamin Gates.”
The 2012 robberies Gates pleaded guilty to are as follows:
June 13: Citizens Bank, Pittsburgh.
June 25: Citizens Bank, Erie, Penn.
July 2: U.S. Bank, Canton, Ohio.
July 20: U.S. Bank, Cuyahoga Falls, Ohio.
July 27: Huntington Bank, Liberty, Ohio.
Aug. 3: Huntington Bank, North Canton, Ohio
Aug. 16: U.S. Bank, Cuyahoga Falls, Ohio
The investigation preceding the indictment was conducted by the following agencies: Federal Bureau of Investigation, Mahoning County Sheriff’s Office, Stark County Sheriff’s Office, Canton Police Department, North Canton Police Department, Jackson Township Police Department, Liberty Township Police Department and the Cuyahoga Falls Police Department.
The matter was prosecuted by Assistant United States Attorney Linda H. Barr.
Cabell County Man Pleads Guilty to Illegal Firearm PossessionRead the Press Release
HUNTINGTON, W.Va. – U.S. Attorney Booth Goodwin today announced that a Cabell County man pleaded guilty in federal court to illegal firearm possession. Kenneth Richard Nance, 43, of Huntington, W.Va., pleaded guilty to possession of a firearm by a person subject to a domestic violence protection order. Nance admitted that on December 7, 2011, he possessed a Raven .25-caliber pistol.
At the time of the firearm possession, Nance was subject to a Domestic Violence Protection Order (DVPO) issued by the Family Court of Cabell County, West Virginia. Nance admitted that he knew the DVPO was in effect at the time he possessed the firearm on December 7, 2011. The defendant further admitted that he knew it was illegal to possess a firearm or ammunition while the DVPO was in effect.
Nance faces up to 10 years in prison and a $250,000 fine when he is sentenced on June 3, 2013 by United States District Chief Judge Robert C. Chambers.
The investigation was conducted by the FBI, the ATF, and the Cabell County Sheriff’s Department. Assistant United States Attorney Lisa Johnston is in charge of the prosecution.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.