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Thursday 17 January 2013
Felon in Possession Sentenced to More Than 13 Years in PrisonRead the Press Release
CORPUS CHRISTI, Texas - Joshua Wallace, 39, of Corpus Christi, has been handed a 160-month sentence for his conviction of possession of a firearm by a convicted felon, United States Attorney Kenneth Magidson announced today along with Melvin King Jr., special agent in charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Wallace entered a plea of guilty on Thursday, Sept. 27, 2012.
Today, Senior U.S. District Judge Hayden Head sentenced Wallace to the 160-month-term which will be followed by a five-year-term of supervised release.
At the plea hearing, Wallace admitted that in September 2011, he sold three handguns to an undercover agent with the ATF. The undercover purchases were made on Sept. 13, Sept. 14 and Sept. 27, 2011, in Corpus Christi and were captured by concealed audio and video recording devices. Wallace has four previous burglary convictions and one conviction of possession of heroin.
Wallace has been in custody since his arrest on Aug. 28, 2012, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by the ATF and prosecuted by Assistant United States Attorney Sam Brown IV.
Federal Inmate and Brother SentencedRead the Press Release
ABINGDON, VIRGINIA -- United States Attorney Timothy J. Heaphy announced today that a federal inmate currently serving a prison sentence at United States Penitentiary Lee has been sentenced to serve additional federal time after he was involved in the distribution of a controlled substance. His brother was also sentenced to serve federal time after he was involved in providing a controlled substance to a federal inmate.
William Ruble, age 35, was sentenced in the United States District Court for the Western District of Virginia in Abingdon on January 4, 2013, for intent to distribute and distributing a controlled substance, methamphetamine, following his guilty plea.
“The criminal enforcement work of the Department of Justice does not cease at the walls of a Federal Penitentiary,” United States Attorney Timothy J. Heaphy said today. “When laws of the United States are broken in prison, inmates must realize they will be held accountable for their actions.”
William Ruble, who was sentenced on May 18, 2009 to 57 months of incarceration by the Eastern District of Tennessee for knowingly possessing firearms and ammunition after having previously been convicted of crimes punishable by terms of imprisonment exceeding one year, was released from his federal sentence during the pendency of the action. He was sentenced to serve an additional 120 months of federal incarceration following his most recent conviction.
Scotty Ruble was sentenced to serve 60 months of federal incarceration following his guilty plea for intent to distribute and distributing a controlled substance, methamphetamine.
According to evidence provided by Special Assistant United States Attorney Debbie Stevens, on August 29, 2010, William Ruble was found to be in possession of methamphetamines after a visit with his brother, Scotty Ruble.
The investigation of this case was handled by the Federal Bureau of Investigation and Special Investigative Unit of the Bureau of Prisons. Special Assistant United States Attorney Debbie Stevens prosecuted the cases for the United States.
Federal Grand Jury Returns IndictmentRead the Press Release
South Bend, IN—The United States Attorney's Office announced that a Grand Jury sitting in Hammond, Indiana, returned the following Indictment on January 16, 2013:
Jonathan Parahams, Jr., 35, Africa Gunn, 35, Angela White, 31, Alicia Green, 27, and Levelle Sanders, 26, all of South Bend, Indiana, were charged in an Indictment with participating in a scheme to prepare and file approximately 1,189 tax returns making false and fictitious claims from the Northern District of Indiana and elsewhere requesting a total of approximately $3,543,794 in tax refunds.The Indictment alleges that the defendants solicited identifying information of individuals, including their names and social security numbers, to use to file fraudulent 2008, 2009 and 2010 U.S. tax returns and then directed the refunds to be received and deposited into bank accounts controlled by the defendants and others.These charges were filed as the result of an investigation by the Internal Revenue Service.This case has been assigned to and will be prosecuted by Assistant United States Attorney Frank Schaffer.
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.
Federal Grand Jury Indicts Maverick County Commissioner Cesar FloresRead the Press Release
In Eagle Pass, Texas this morning, Maverick County Precinct Four Commissioner Cesar Flores, age 46 of Eagle Pass, Texas, was arrested by the Federal Bureau of Investigation (FBI) after a federal grand jury in Del Rio indicted him this week in connection with an alleged bribery, kickback and bid-rigging scheme announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
The federal grand jury indictment, returned yesterday and unsealed this morning, charges Flores with five counts of receiving bribes. The indictment alleges that in 2010 and 2011, Flores manipulated the bidding process to guarantee that contractors he chose would be awarded Maverick County construction contracts. Those contractors deposited the checks issued to them by Maverick County and then made cash payments to Flores. According to the indictment, the private contractors submitted inflated bids to Maverick County in order for there to be sufficient funds to perform the construction work, make a profit, and pay the bribe to Flores.
Upon conviction, Flores faces up to ten years in federal prison for each bribery charge. Flores appeared before Magistrate Judge Victor Roberto Garcia this morning in Del Rio for his Initial Appearance. Bond for Flores was set at $40,000.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741.Assistant United States Attorney Michael Galdo is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Fayetteville Man Sentenced for Bank RobberiesRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court today Senior United States District Judge James C. Fox sentenced RASON LAMAR SPARKMAN, 31, to 115 months imprisonment followed by 3 years supervised release, and SPARKMAN was ordered to pay $7,132.52 in restitution.
On September 4, 2012, SPARKMAN pled guilty to two counts of bank robbery, in violation of Title 18, United States Code, Sections 2113(a).
On June 27, 2011, SPARKMAN robbed the RBC Centura Bank on Ramsey Street, (now PNC Bank), in Fayetteville, North Carolina, taking $1,869.00. The investigation revealed that SPARKMAN, approached a bank teller and demanded money. SPARKMAN fled from the scene in a taxi cab.
On August 8, 2011, SPARKMAN robbed a Wachovia Bank on South McPherson Street in Fayetteville, North Carolina taking $4,414.45. SPARKMAN was identified through the bank’s surveillance video and fingerprint analysis.
Investigation of this case was conducted by the Federal Bureau of Investigation and the Fayetteville Police Department. Assistant United States Attorney S. Katherine Burnette is prosecuting the case.
Fairmont Resident Convicted on Child Pornography ChargeRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA - A 67-year old Fairmont, West Virginia, resident was convicted this week after a two-day jury trial presided over by Judge Irene M. Keeley.
United States Attorney William J. Ihlenfeld, II, announced that CLYDE BATES was convicted on one count of “Possession of Child Pornography on August 27, 2010,” in Fairmont. The evidence presented at trial indicated that BATES possessed a large number of images depicting pre-pubescent girls and boys involved in sexual acts.
As part of the conviction, BATES has to forfeit One Apple MacBook notebook computer as well as any item constituting or containing child erotica including printed-out stories describing sexual encounters involving children.
BATES, who is in custody pending sentencing, faces a maximum exposure of 10 years imprisonment and a fine of $250,000.
The case was prosecuted by Assistant United States Attorney Shawn A. Morgan and investigated by the West Virginia State Police Crimes Against Children Unit and the Fairmont Police Department.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Fairbanks Man indicted in murder for hire plotRead the Press Release
Anchorage, Alaska B U.S. Attorney Karen L. Loeffler announced today that a Fairbanks area man has been indicted by the federal grand jury for two counts of using interstate commerce facilities with the intent that a murder for hire take place in either Indiana or Michigan. The indictment returned by the grand jury charges Fairbanks area resident Eric Donald Grabber, 55, with one count of causing another person to travel from Alaska to Indiana on December 29, 2012, with the intent that a contract murder of another individual take place in either Indiana or Michigan. The indictment charges Grabber with a second count of making a cellular telephone call on January 3, 2013, from Alaska to Michigan in furtherance of the murder for hire plot.
Assistant U.S. Attorney Joseph Bottini, who presented the case to the grand jury, indicated that the law provides for a sentence of up to ten years as well as a fine of up to $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives, conducted the investigation leading to the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
East Rochester Man Pleads Guilty to Marijuana ChargesRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Christopher H. Monfort, 40, of East Rochester, N.Y., pleaded guilty before U.S. District Judge Charles J. Siragusa, to manufacturing 50 or more marijuana plants. The charge carries a maximum penalty of 20 years in prison, a fine of $1,000,000, or both.
Assistant U.S. Attorney Brett A. Harvey, who is handling the case, stated that during the execution of a search warrant at a residence at 353 Noridge Drive in Irondequoit, N.Y., police recovered 276 marijuana plants, as well as scales, lights, and other equipment used to grow and manufacture marijuana. Monfort admitted to using the residence to house a marijuana grow operation.
Monfort also faces other federal charges in a separate matter. On September 11, 2009, the defendant pleaded guilty to burglary of a railcar, which carries a maximum penalty of 10 years in prison, a fine of $250,000, or both. Those charges resulted from Monfort's involvement in the theft of more than 67 gross tons of processed scrap metal from railcars at a CSX Transportation railroad yard located south of the City of Batavia, between June 20, 2009, and June 30, 2009.
The plea relating to the marijuana grow operations is the culmination of an investigation on the part of the Greater Rochester Area Narcotics Enforcement Team composed of law enforcement personnel from the Rochester Police Department, under the direction of Chief James M. Sheppard, the Brighton Police Department, under the direction of Chief Mark Henderson, the East Rochester Police Department, under the direction of Chief Steven J. Clancy, and the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division.Sentencing for both matters is scheduled for March 4, 2013, at 4:00 p.m. before Judge Siragusa.
Dublin Attorney Charged with Conspiracy, Money Laundering for Involvement with Alleged Pill MillsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – A federal grand jury has indicted Steven E. Hillman, 67, of Dublin, Ohio, alleging that he conspired with the owner of three pain clinics in Ohio to illegally divert prescription drugs outside the scope of legitimate medical practice and launder proceeds of the conspiracy.
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Robert L. Corso, Special Agent in Charge, Drug Enforcement Administration, Detroit Field Division; and Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation (FBI) announced the charges contained in a superseding indictment on Wednesday, January 16, 2013.
The indictment alleges that Hillman conspired with Tracy Bias, 47, of West Portsmouth, Ohio in an attempt to open Physicians Pharmacy in Piketon, Ohio in order to service prescriptions for illegal distribution of controlled substances issued by the pain clinics owned and controlled by Bias and others. The indictment charges that Hillman helped Bias launder $132,920 in cash from the activities of the conspiracy in July 2010.
Bias and six doctors were initially indicted in April 2012 in a 12-count indictment alleging that they operated three pill mills in southern Ohio between January 2009 and June 2011, Southern Ohio Complete Pain Management and Portsmouth Medical Solutions in Portsmouth, and Trinity Medical Care in Columbus, Ohio.
Customers allegedly traveled hundreds of miles to the clinics in central and southern Ohio where, for a cash payment of approximately $200 per office visit and with little or no physical examination, clinic customers would receive excessive amounts of “cocktails” of controlled substances including diazepam, hydrocodone, oxycodone and alprazalam.
Hillman is scheduled to appear before U.S. Magistrate Judge Stephanie K. Bowman in Cincinnati on Thursday, January 24, 2013 at 1:30 p.m. for an initial appearance and arraignment on the charges.
Conspiracy to distribute drugs outside the scope of legitimate medical practice and money laundering are each punishable by up to 20 years in prison.
Stewart commended the cooperative investigation by agents and officers of the agencies named above, as well as Assistant U.S. Attorney Timothy Oakley, who is prosecuting the case.
An indictment is only a charge and is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Dr. David G. Millaud Pleads Guilty to Defrauding the Small Business AdministrationRead the Press Release
DR. DAVID G. MILLAUD, age 52, a resident of New Orleans, Louisiana pleaded guilty today before U.S. District Court Judge Eldon E. Fallon to a one-count Superseding Bill of Information for theft of government funds in connection a disaster loan that he received from the Small Business Administration, announced U.S. Attorney Dana Boente.
According to the Bill of Information, MILLAUD submitted false invoices to the Small Business Administration in order to support his request for a loan disbursement. As a result of the false invoices, MILLAUD received a loan disbursement totaling $56,449.91in government funds to which he was not entitled.
MILLAUD faces a maximum term of five (5) years imprisonment, a fine of $250,000 and three (3) years of supervised release following any term of imprisonment.
The case was investigated by the U. S. Department of Housing and Urban Development, Office of the Inspector General, Small Business Administration, Office of Inspector General, and the Federal Bureau of Investigation. The case was prosecuted by Assistant U. S. Attorney Spiro G. Latsis.
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Danville Man Sentenced to 14 ½ Years in Prison for Crack Cocaine, Weapons OffensesRead the Press Release
Urbana, Ill. – A Danville, Ill., man, Marquis D. Robinson, has been ordered to serve 175 months (14 years, 7 months) in federal prison for crack cocaine and weapons offenses. U.S. District Judge Michael P. McCuskey sentenced Robinson, last known address South Beard Street, Danville, Ill., on Monday, Jan. 14, 2013. Robinson was also ordered to remain on supervised release for a period of eight years following completion of his prison sentence.
Robinson has been in the custody of the U.S. Marshals Service since he was charged in federal court in October 2010. On Aug. 31, 2012, Robinson entered pleas of guilty to distribution of crack cocaine (one count); distribution of 28 grams or more of crack cocaine (one count); possession of 28 grams or more of crack cocaine with intent to distribute it (one count); and, possession of a firearm by a felon (one count.)
The charges were investigated by the Vermilion County Metropolitan Enforcement Group (VMEG) and the U.S. Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Attorney Eugene L. Miller.
Dante Dowers Becomes Sixth Guilty Plea in Teacher Test Taking ScandalRead the Press Release
Memphis, TN – Dante Dowers, 40, of Belle Glade, FL, pled guilty today to aiding and abetting identification fraud in connection with the teacher certification cheating scam directed by ringleader Clarence Mumford, Sr., 59, of Memphis, announced United States Attorney for the Western District of Tennessee, Edward L. Stanton III. This plea, along with previous guilty pleas by John Bowen, 63; Felippia Kellogg, 42; Jeryl Shaw, 40; Shantell Shaw, 40; and Carlos Shaw, 37; all of Memphis, brings to six the total number of guilty pleas thus far in Mumford Sr.’s teacher certification cheating scam.
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The original indictment in the case, filed in July 2012, charged Mumford Sr. with orchestrating a scheme that began as early as 1995 to pay test-takers to take teacher certification examinations on behalf of teachers and hopeful teachers. In August, a superceding indictment charged Dante Dowers, 40, of Belle Glade, Florida and Mumford Sr.’s son, Clarence Mumford Jr., 28, of Memphis. And in September, a second superceding indictment charged ten more individuals, including Samuel Campbell, 39, of Jackson, Mississippi; Darcel Gardner, 35, of Columbus, Mississippi; Steve Holmes, 53, of Memphis, Tennessee; Valerie Humphrey, 47, of Oakland, Tennessee; Carlo McClelland, 35, of Meridian, Mississippi; Jacklyn McKinnie, 44, of Memphis, Tennessee; Jadice Moore, 30, of Port Gibson, Mississippi; Sarah Richard, 54, of Richland, Mississippi; Jeryl Shaw, 40, of Memphis, Tennessee; and Kimberly Taylor, 36, of Charleston, Mississippi. Cedrick Wilson, 34, of Memphis, Tennessee, was charged in a separate indictment related to the scam in October 2012.
During the guilty plea hearing, Dowers admitted to meeting with an aspiring teacher in late 2009 and receiving the aspiring teacher’s driver’s license and $3,580 payment, all of which he forwarded to Mumford, Sr. Mumford, Sr. used the driver’s license to create a fake identification with a test-taker’s picture on the aspiring teacher’s driver’s license. In July 2010, John Bowen, a test-taker who previously pled guilty in this case, passed a PRAXIS examination on behalf of the aspiring teacher.
This investigation is being conducted by the Tennessee Bureau of Investigation and the United States Secret Service. Assistant U.S. Attorney John Fabian and Special Assistant U.S. Attorney Kirby May represent the government.Damian James Backer Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billiings, on January 17, 2013, before Chief U.S. District Judge Richard F. Cebull, DAMIAN JAMES BACKER, a 21-year-old resident of Lame Deer and an enrolled member of the Northern Cheyenne Tribe, appeared for sentencing. BACKER was sentenced to a term of:
Prison: 21 months
Special Assessment: $100
Supervised Release: 3 years
BACKER was sentenced in connection with his guilty plea to assault resulting in serious bodily injury.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On August 2, 2011, BACKER came home to find X.X. in the act of raping the victim. BACKER then confronted X.X. and chased him out of the house. BACKER then had an argument with the victim outside of the residence that turned physical. Specifically, BACKER grabbed the victim to carry her back to their house. She struggled with him and fell to the street. BACKER was angry with her and her struggles. He hit and kicked her while she was on the ground. The assault was witnessed by neighbors.
The victim suffered a fracture of her right eye socket with bleeding into the sinuses. She also had severe bruising and lacerations on her eyelids, the bridge of her nose, her right and left cheeks, and lips. She also had some bruises and abrasions on her upper body, knees, and the top of her right foot. These injuries constitute serious bodily injury.
The crime occurred on the Northern Cheyenne Indian Reservation.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that BACKER will likely serve all of the time imposed by the court. In the federal system, BACKER does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Cordele, Georgia, Resident Indicted for Using Stolen Identities on False Tax ReturnsRead the Press Release
A federal grand jury in Macon, Ga., returned an indictment charging Kimberly Michelle Banks, a resident of Cordele, Ga., with crimes involving the use of stolen identities on false federal income tax returns in order to obtain refunds to which Banks was not entitled.
According to the six-count indictment, which charges her with aggravated identity theft and wire fraud, Banks illegally obtained stolen identity information and used this information to prepare false tax returns claiming refunds. She then electronically submitted these returns to the Internal Revenue Service and had the refunds deposited onto prepaid debit cards.
An indictment is merely a formal charge by the grand jury. The defendant is presumed innocent unless and until proven guilty in a U.S. District Court.
The case is being prosecuted by Trial Attorneys Alexander R. Effendi and Justin K. Gelfand of the Justice Department’s Tax Division and Michael Solis of the U.S. Attorney’s Office for the Middle District of Georgia. The case was investigated with the assistance of the IRS.
More information about the Tax Division and its enforcement efforts can be found at www.justice.gov/tax
Cordele, Georgia, Resident Indicted for Using Stolen Identities on False Tax ReturnsRead the Press Release
WASHINGTON – A federal grand jury in Macon, Ga., returned an indictment charging Kimberly Michelle Banks, a resident of Cordele, Ga., with crimes involving the use of stolen identities on false federal income tax returns in order to obtain refunds to which Banks was not entitled.
According to the six-count indictment, which charges her with aggravated identity theft and wire fraud, Banks illegally obtained stolen identity information and used this information to prepare false tax returns claiming refunds. She then electronically submitted these returns to the Internal Revenue Service and had the refunds deposited onto prepaid debit cards.
An indictment is merely a formal charge by the grand jury. The defendant is presumed innocent unless and until proven guilty in a U.S. District Court.
The case is being prosecuted by Trial Attorneys Alexander R. Effendi and Justin K. Gelfand of the Justice Department’s Tax Division and Michael Solis of the U.S. Attorney’s Office for the Middle District of Georgia. The case was investigated with the assistance of the IRS.
More information about the Tax Division and its enforcement efforts can be found at www.justice.gov/tax.
Charlotte Woman Sentenced for Trafficking 13 Year Old GIrl in Richmond AreaRead the Press Release
RICHMOND, Va. – Whitney Hayes, 21, of Charlotte, NC, was sentenced today to 57months in prison, followed by three years of supervised release, for conspiracy to transport an individual across state lines for prostitution.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field Office; and D.A. Middleton, Chief of Police for the Henrico County Police Division, made the announcement after sentencing by United States District Judge Henry E. Hudson.
“The world of sex trafficking is vile and horrific – and unfortunately, it’s happening right here in Central Virginia,” said U.S. Attorney MacBride. “Ms. Hayes found a 13-year-old girl living on the streets and exploited the child’s vulnerability for profit. She taught the victim the business of prostitution and lived with her in hotels for two months while the victim’s family desperately searched for their child. Our utmost priority is to protect our children, and we will continue to go after those who prey on them and lure them into the sexual trade.”
Hayes plead guilty on September 27, 2012, to conspiracy to transport an individual across state lines for purpose of prostitution. According to court documents, Hayes worked as a prostitute for Korey Reynolds in the Charlotte area from 2011 through 2012. In a statement of facts filed with her plea agreement, Hayes admitted that in February or March 2012, she met a 13-year old female while she and Reynolds were in Miami, Florida. She recruited the 13-year old to join the prostitution organization. Once they were back in Charlotte, Hayes taught the juvenile the business of prostitution, including posting internet advertisements offering the female as a prostitute to prospective customers. In May 2012, she, Reynolds and another female transported the juvenile from Charlotte to Richmond, Virginia, with the intent that the juvenile engage in prostitution while in Virginia.
This case was investigated by the FBI and the Henrico County Police Division. Assistant United States Attorney Jamie L. Mickelson prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Charlotte Contractor Pleads Guilty to Tax EvasionRead the Press Release
GRAND RAPIDS, MICHIGAN – Thomas Lee Earl, 37, of Charlotte, pled guilty to tax evasion, U.S. Attorney Patrick Miles announced today. Earl, owner of Earl’s Exterior Plus, admitted that he had received substantial business income after a hail storm hit the greater Lansing area in 2008. Earl hid that income from the IRS and filed a false tax return for 2009 that underreported his income.U.S. Attorney Miles stated that “the United States Attorney’s Office will not hesitate to bring to justice those individuals who choose to defraud the IRS by willfully understating their income to avoid paying taxes. Such conduct is criminal and is unfair to honest citizens who pay
their taxes on a timely basis.”U.S. Attorney Miles was joined in the announcement by Special Agent in Charge Erick Martinez, Internal Revenue Service Criminal Investigation. “It is important to remember, especially during filing season, that there are serious consequences for intentionally failing to
report all of your income,” said Special Agent Martinez.Earl faces up to five years in prison. A date for sentencing has not yet been scheduled.
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Buffalo Man Pleads Guilty to Drug Conspiracy ChargesRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that John A. Cruz, 26, of Buffalo, N.Y., pleaded guilty before U.S. Magistrate Judge Leslie G. Foschio, to conspiracy to possess with intent to distribute, and to distribute, heroin. Cruz was arrested along with 17 others in August of 2010 for narcotics trafficking. The drug conspiracy charge against Cruz carries a maximum term of 20 years in prison, a $1,000,000 fine, or both.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that Cruz was involved in a drug conspiracy which distributed illegal narcotics throughout the Western District of New York. Specifically, the defendant sold heroin. Cruz was arrested in August of 2010 along with 16 others. To date, eight of the defendants have been convicted.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, the Federal Bureau of Investigation, under the direction of Special Agent in Charge Christopher M. Piehota, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, the Niagara County Drug Task Force, under the direction of Sheriff James Votour, Internal Revenue Service - Criminal Investigation, under the direction of Special Agent In Charge Toni Weirauch, and the Niagara Frontier Transportation Authority Transit Police, under the direction of Chief George Gast.
Brooklyn Woman Sentenced in Manhattan Federal Court to One Year and One Day in Prison for Participating in $57.3 Million Fraud on Organization That Makes Reparations to Victims of Nazi PersecutionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MARINA ZAYTSEVA was sentenced today in Manhattan federal court to one year and one day in prison for her participation in a $57 million fraud scheme that targeted programs administered by the Conference on Jewish Material Claims Against Germany, Inc. (the “Claims Conference”) and that were established to aid the survivors of Nazi persecution, and for instructing others to lie to the FBI if questioned about the fraud. ZAYTSEVA pled guilty in July 2012 to one count of conspiracy to commit mail fraud, and one count of witness tampering. She was sentenced by U.S. District Judge Thomas P. Griesa.
Manhattan U.S. Attorney Preet Bharara said: “Not only did Marina Zaytseva recruit participants into a multi-million dollar fraud scheme against an organization that exists solely for the purpose of aiding victims of Nazi atrocities, but she compounded her shameful conduct by obstructing the investigation into the fraud. She is the latest defendant in this massive scheme to be punished, but she will not be the last.”
According to the Superseding Indictment, the Complaint, and statements made during court proceedings:
The Claims Conference, a not-for-profit organization which provides assistance to victims of Nazi persecution, supervises and administers several funds that make reparation payments to victims of the Nazis, including “the Hardship Fund” and “the Article 2 Fund,” both of which are funded by the German government. Applications for disbursements through these funds are processed by Claims Conference employees in the Manhattan office who are supposed to confirm that the applicants qualify for payments.
As part of the charged scheme, a web of individuals systematically defrauded the Article 2 Fund and Hardship Fund programs for over a decade. The Claims Conference first suspected the fraud in December 2009, and immediately reported their suspicions to law enforcement, which conducted a wide-reaching investigation.
The Hardship Fund pays a one-time payment of approximately $3,500 to victims of Nazi persecution who evacuated the cities in which they lived and were forced to become refugees. Members of the conspiracy submitted fraudulent applications for people who were not eligible, including many who were born after World War II, and at least one person who was not Jewish.
ZAYTSEVA, along with other members of the conspiracy, recruited people to provide their identification documents, such as passports and birth certificates, which were then fraudulently altered and submitted to corrupt insiders at the Claims Conference. The corrupt insiders then processed those applications. When the applicants received their compensation checks, they kept a portion of the money and passed the rest back up the chain.
From the investigation to date, the Claims Conference has determined that at least 3,839 Hardship Fund applications appear to be fraudulent. These applications resulted in a loss to the Hardship Fund of approximately $12.3 million.
The Article 2 Fund makes monthly payments of approximately $400 to survivors of Nazi persecution who make less than $16,000 per year, and either (1) lived in hiding or under a false identity for at least 18 months; (2) lived in a Jewish ghetto for 18 months; or (3) were incarcerated for six months in a concentration camp or a forced labor camp. The fraud involved doctored identification documents in which the applicant's date and place of birth had been changed. The fraud also involved more sophisticated deception, including altering documents that the Claims Conference obtains from outside sources to verify a person’s persecution by the Nazis. Some of the detailed descriptions of persecution in the fraudulent Article 2 Fund applications were completely fabricated.
From the investigation to date, the Claims Conference has determined that at least 1,112 Article 2 Fund cases it processed have been determined to be fraudulent. Those cases have resulted in a loss to the Claims Conference of approximately $45 million.
Witness Tampering
When ZAYTSEVA first learned that the FBI was investigating her involvement in the fraudulent scheme, she instructed other participants in the fraud to lie to the FBI if questioned. Specifically, ZAYTSEVA instructed one witness to claim falsely a lack of memory about the fraud and instructed a second witness to deny having split money with her.
Of the 31 individuals who have been charged with participating in the scheme to defraud the Article 2 Fund and Hardship Fund programs since 2010, 19 defendants, including ZAYTSEVA, have pled guilty, and seven of those defendants have been sentenced. Charges are pending against 12 defendants in the case, and they are presumed innocent unless and until proven guilty.
In addition to her prison term, ZAYTSEVA, 52, of Brooklyn, New York, was sentenced to one year of supervised release. ZAYTSEVA was also ordered to pay $66,597.12 in restitution and to forfeit $6,000.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation (“FBI”). He also thanked the Claims Conference for bringing this matter to the FBI’s attention and for its extraordinary continued cooperation in this investigation, which he noted is ongoing.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Christopher D. Frey and Jonathan Cohen, and Special Assistant U.S. Attorney Rebecca Rohr, are in charge of the prosecution.
Beaver County Man Purchased Merchandise with Fake Credit CardsRead the Press Release
PITTSBURGH - A resident of Beaver County pleaded guilty in federal court to a charge of conspiracy to use counterfeit credit cards, United States Attorney David J. Hickton announced today.
Rayvon Oscar Kyles, 21, of Aliquippa, Pa., pleaded guilty to one count before Senior United States District Judge Maurice B. Cohill.
In connection with the guilty plea, from June 2010 through June 2011, Kyles used counterfeit credit cards at Walmart stores in Western Pennsylvania to purchase merchandise.
Judge Cohill scheduled sentencing for May 2, 2013. The law provides for a maximum total sentence of five years in prison, a fine of $250,00, or both, as to each defendant. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
Inspectors from the United States Postal Inspection Service along with agents from the United States Secret Service who, as part of the Western Pennsylvania Financial Crimes Task Force (WPFCTF), conducted the investigation that led to the successful prosecution of Rayvon Oscar Kyles. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police, conducted the investigation that led to the prosecution of Rayvon Oscar Kyles.
Automotive Electronics Manufacturer Fined $500,000 for Selling Illegal Devices Resulting in Tons of Excess Particulate Matter EmissionsRead the Press Release
WASHINGTON –In a settlement with the United States on behalf of the U.S. Environmental Protection Agency, automotive electronics manufacturer Edge Products LLC (Edge) has agreed to pay a $500,000 civil penalty for manufacturing and selling electronic devices that allowed owners of model year 2007 and later diesel pickup trucks to remove emission controls from their vehicles. Diesel trucks that are not equipped with emission controls known as “diesel particulate filters” emit excess particulate matter (PM). When running, trucks without these types of controls leave behind a trail of dark, black smoke. PM is associated with a number of health problems, including respiratory and cardiovascular disease, chronic bronchitis, decreased lung function, and an increased risk of lung cancer.
The company, located in Ogden, Utah, sold more than 9,000 of these electronic devices nationwide, resulting in an estimated 158 tons of excess PM emissions released into the atmosphere. This is equivalent to the emissions from 422 new long-haul semi trucks operating for a period of 29 years.
“The Department of Justice will continue to vigilantly protect America’s health and environment through the enforcement of the Clean Air Act standards governing emissions from vehicles and engines,” said Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “This settlement holds Edge Products accountable for selling devices that allow consumers to disable the emission controls on their vehicles by requiring the company to pay a penalty, buy back the devices, and perform a project to offset the air pollution resulting from the Clean Air Act violations.”
“Our goal is to have these illegal devices removed and proper emission controls installed,” said Jared Blumenfeld, EPA’s Regional Administrator for the Pacific Southwest. “Allowing black smoke to billow conspicuously from the tailpipes of diesel pickup trucks is a practice that directly harms public health.”
Diesel particulate filters remove approximately 90% of the particulate matter emissions from a truck’s exhaust. If the filter is removed, the truck will generally not operate properly as the filter is monitored by the truck’s computer. However, the electronic devices sold by Edge allowed individuals to reprogram the truck’s computer so that the truck would continue to operate even after the filter had been removed.
Although Edge stopped selling the illegal devices in mid-2011, the consent decree requires Edge to offer to buy back the devices from anyone who possesses one. In order to sell the device back to Edge, the truck from which the device came must be returned to its original factory programming. Edge is also required to spend at least $157,600 to implement an emission mitigation project to offset the excess PM emissions that it caused. Edge will use the additional funds to offer rebates to individuals who own old wood-burning stoves and who wish to replace them with cleaner burning appliances such as new pellet stoves or EPA-certified wood stoves.
The civil penalty of $500,000 is based on the United States’ determination that Edge has a limited ability to pay a penalty in this matter.
The consent decree resolves allegations in a complaint, filed today, that Edge violated the Clean Air Act by manufacturing and selling motor vehicle parts or components whose effect is to bypass, defeat, or render inoperative a motor vehicles emission control device.
For more information about this case, please visit: http://www.epa.gov/enforcement/air/cases/edgeproducts.html
Assistant District Attorney and Secretary Plead Guilty to Felony ChargesRead the Press Release
LAFAYETTE, La.: United States Attorney Stephanie A. Finley announced today that Greg Williams, 44, of Lafayette, La., an Assistant District Attorney for the 15th Judicial District, pled guilty to a one- count Bill of Information charging Williams with Conspiracy to Commit Bribery. His secretary, Denease Curry, 46, of Broussard, La., also pled guilty to a separate one-count Bill of Information charging her with Misprision of a Felony, that is, failure to report the bribery scheme.
The following admissions were made by Williams and Curry in their factual stipulations entered during the guilty plea hearings in open court before Magistrate Judge Patrick J. Hanna:
The District Attorney's Office had previously established a process by which select individuals could receive what was referred to as “immediate 894 pleas” on OWI cases. In order to qualify for the “immediate 894 plea,” the charged individuals had to provide certifications at the time of the plea that they had completed all legal prerequisites, including community service, a substance abuse program, and a driver safety program. If the District Attorney authorized the “immediate 894 plea,” their case was not placed on any docket, and they were allowed to plea at a time and place different than the normal OWI docket. Following the entry of the “immediate 894 plea,” the judge would immediately grant the 894 motion dismissing the conviction, which served as an acquittal, thereby enabling those OWI defendants to immediately reinstate their driving privileges.
Beginning in 2010, Williams and Curry became aware that Barna Haynes, the former office administrator and secretary to the District Attorney for the 15th Judicial District, and another individual, (hereafter referred to as co-conspirator #1) were utilizing the “immediate 894 plea” sessions to provide favorable dispositions of OWI cases for individuals who were willing to pay co-conspirator #1. Williams served as the prosecuting attorney in all of the “immediate 894 sessions” conducted for co-conspirator #1’s “clients,” and Curry assisted in coordinating those sessions. Both Williams and Curry were aware that the individuals were paying co-conspirator #1 for being allowed to plead in the “immediate 894 sessions.” Williams and Curry also were aware that co-conspirator #1 was not licensed to practice law.
Curry was regularly contacted by Barna Haynes to help coordinate the “immediate 894 sessions.” At the request of Barna Haynes, Curry would contact the district judge’s chambers for the purpose of setting the session, give the judge’s staff the names of the OWI defendants who were to plead guilty, and obtain a date and time for the upcoming session. Curry would contact co-conspirator #1 informing him of the date and time for the “immediate 894 session.” Curry prepared the OWI files for the “immediate 894 sessions” and would regularly see and interact with co-conspirator #1. On the day of the “immediate 894 session,” co-conspirator #1 would escort his “client” to Assistant District Attorney Greg Williams’ office, and Williams would explain to the “client” what he or she could expect to occur during the “immediate 894 session.”
In 2010, co-conspirator #1 began giving gifts to Curry. That same year, Barna Haynes took an extended medical leave of absence from the District Attorney’s Office. Nevertheless, Haynes continued to coordinate the “immediate 894 sessions” for coconspirator #1’s “clients.” Because of Haynes absence, both Haynes and co-conspirator #1 turned to Curry for additional assistance in coordinating the “immediate 894 sessions.” During this period, co-conspirator #1 began making a series of $200 cash payments to Curry. After the initial payment from co-conspirator #1, Curry spoke to Barna Haynes of her concerns about the payment. Barna Haynes informed Curry that she was also receiving payments from co-conspirator #1. Curry received approximately eight payments from coconspirator #1 totaling $1,600.
In 2010 and 2011, co-conspirator #1 gave Williams a series of gifts and a cash payment as a reward for his participation in the “immediate 894 sessions.” The gifts included an autographed New Orleans Saints hat, bicycles and clothing for Williams and family members. In December 2011, co-conspirator #1 gave Williams a cash payment of $500. This occurred in Williams’ office at the District Attorney’s Office.
At sentencing, Williams faces a term of imprisonment of up to five years, a fine of up to $250,000, or both, and a term of supervised release of not more than three years, following confinement, and Curry faces a term of imprisonment of up to three years, a fine of up to $250,000.00, or both, and a term of supervised release of not more than three years, following confinement. Sentencing will be scheduled at a later date.
U.S. Attorney Finley stated, “There is no place for this kind of activity in the criminal justice system. Both Williams and Curry were entrusted with the responsibility of ensuring that justice was served as it related to the OWI cases. They grossly violated that trust. My office, along with the FBI, will continue to investigate and prosecute corruption in the Western District of Louisiana.”
Special Agent in Charge of the Federal Bureau of Investigation, New Orleans Division, Michael Anderson, stated, “Given the high degree of authority and discretion of any District Attorney’s Office in resolving criminal charges and the associated impacts on victims, the FBI remains fully committed to rooting out corruption that obstructs that process in any way.”
For additional details regarding Williams’ and Curry’s guilty pleas, see attached copies of each defendant’s Plea Agreement and Factual Basis.
The case is being investigated by lead agent Doug Herman, with the FBI, and is being prosecuted by Assistant U.S. Attorneys John Luke Walker and Richard Willis.
Albuquerque Man Indicted by Federal Grand Jury in Connection with 2010 Hitching Post FireRead the Press Release
U.S. Attorney Christopher A. Crofts announced today that Ajay Jariwala, 51, of Albuquerque, N.M., has been indicted by a Wyoming Federal Grand Jury for his alleged involvement with a fire at the Hitching Post Inn on September 15, 2010.
Jariwala has been charged with Conspiracy to Commit Mail Fraud and Wire Fraud; Conspiracy to Commit Arson; Conspiracy to Use Fire in the Commission of another Federal Felony; Aiding and Abetting Arson; Aiding and Abetting the Use of Fire in the Commission of Another Federal Felony and Wire Fraud.
Jariwala was arrested on January 17th, 2013 on these charges in Albuquerque, New Mexico and will make his initial appearance in federal court in New Mexico in the near future.
If convicted of all of these offenses, Jariwala will be subject to a term of not more than 110 years in federal prison, fines of not more that 1.5 million dollars, 3 years supervised release and $600 in special assessments.
The fire occurred on September 15, 2010, and destroyed a large portion of the historic Cheyenne hotel.
An Indictment is only an accusation. In every criminal case, the accused is presumed to be innocent until proven guilty, and the government always has the burden of proving guilt beyond a reasonable doubt.
The Bureau of Alcohol, Tobacco and Firearms is leading the investigation with assistance from the Cheyenne Police Department and the Cheyenne Fire Department.
As the investigation into the fire is ongoing, no further comment regarding the case may be made at this time.Alabama Residents Indicted Stolen Identity Refund Fraud ConspiracyRead the Press Release
Mary and Christian Young and Octavious Reeves were indicted by a federal grand jury in the Middle District of Alabama on a variety of charges stemming from an identity theft and tax fraud conspiracy, the Justice Department and the Internal Revenue Service (IRS) announced today. The alleged conspirators were charged in a 31-count indictment that was returned on Dec. 18, 2012, and unsealed today.
Mary and Christian Young and Octavious Reeves, all of Elmore County, Ala., were charged with conspiring to defraud the United States, along with access device fraud and aggravated identity theft. Mary Young was also charged with several counts of wire fraud. According to the indictment, the defendants’ conspiracy lasted from January 2012 through June 2012 and involved using stolen identities to file tax returns claiming fraudulent refunds.
The indictment further alleges that Mary Young obtained the names and Social Security numbers of individuals that were then used to electronically file false tax returns. Mary Young would direct the false tax refunds to bank accounts linked to prepaid debit cards. Mary and Christian Young and Octavious Reeves would then use the prepaid debit cards to withdraw cash or pay for personal items.
An indictment merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Mary Young faces face a maximum potential sentence of 328 years in prison, Christian Young faces a maximum of 27 years in prison, and Octavious Reeves faces a maximum of 78 years in prison.
IRS-Criminal Investigation agents investigated this case, and Justice Department Tax Division trial attorneys Charles M. Edgar Jr. and Michael Boteler are prosecuting the case.
12 Indicted for Their Roles in Alleged Sex Trafficking and Prostitution Ring Operating Out of Savannah, GeorgiaRead the Press Release
“Operation Dark Night” results in the dismantling of an alleged multi-state sex trafficking and prostitution ring, and the rescuing of several women allegedly forced into prostitution
SAVANNAH, GA – A federal indictment, unsealed today, has charged 12 defendants for their roles in an alleged sex trafficking and prostitution ring stretching from Georgia to Florida to North and South Carolina. The federal charges follow a lengthy investigation dubbed “Operation Dark Night,” which was led by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Yesterday, in addition to a number of arrests and searches, federal authorities rescued 11 women alleged to have been forced into prostitution.
United States Attorney Edward Tarver said, “In what essentially amounts to slavery in the year 2013, the conduct described in the indictment against these defendants is reprehensible. Human trafficking is a cancer facing our society. This indictment confirms that the United States Attorney’s Office, HSI and other federal and state law enforcement agencies are taking an aggressive stand to stop the victimization of women involved in sex trafficking.”
“ICE investigates a wide array of crimes, but the trafficking of women and girls for prostitution is among the most sinister,” said ICE Director John Morton. “Few crimes so damage their victims and undermine basic human decency. Our fight against this evil must be relentless, both here and abroad.”
According to allegations in the Indictment, Joaquin Mendez-Hernandez, aka El Flaco, conspired with each of the defendants to transport people across interstate boundaries to engage in prostitution. In addition, Mendez-Hernandez allegedly conspired with at least three others to entice women from Mexico, Nicaragua and elsewhere to travel to the United States with false promises of the American dream. Once inside the United States, these women were allegedly threatened and forced to commit acts of prostitution at numerous locations in Savannah, Georgia and throughout the southeast. In one such instance identified in the indictment, Mendez-Hernandez is alleged to have told a Mexican woman that she would be sent back to her home country unless she serviced 25 clients a day.
A copy of the indictment is attached. Mr. Tarver stressed that an indictment is only an accusation and is not evidence of guilt. The Defendants are entitled to a fair trial, during which it will be the Government’s burden to prove the defendants’ guilt beyond a reasonable doubt.
HSI provides relief to victims of human trafficking by allowing for their continued presence in the United States during criminal proceedings. Victims may also qualify for a T visa, which is issued to victims of human trafficking who have complied with reasonable requests for assistance in investigations and prosecutions. Anyone who suspects instances of human trafficking is encouraged to call the HSI tip line at 1-866-DHS-2-ICE (866-347-2423) or the Human Trafficking Hotline at 1-888-373-7888. Anonymous calls are welcome.
Operation Dark Night was led by HSI, with assistance from the FBI; the ATF; U.S. Customs and Border Protection (CBP); CBP Air and Marine Operations; IRS-Criminal Investigations; the Savannah-Chatham Metropolitan Police Department; the Chatham County Sheriff’s Office; the Garden City Police Department; and, the Chatham County Counter Narcotics Team. Assistant United States Attorneys Tania D. Groover and E. Greg Gilluly, Jr. are prosecuting the case on behalf of the United States.
Wednesday 16 January 2013
“murder Squad” Brothers Plead Guilty to Violations of Rico Conspiracy, the Federal Gun Control and Controlled Substances Acts, and Aiding and AbettingRead the Press Release
DANTE CARSON, age 21, and, DWIGHT CARSON, age 22, both of Algiers, Louisiana pled guilty in federal court today before U.S. District Judge Lance M. Africk to Violations of the Racketeer Influenced Corrupt Organization Act, the Federal Gun Control and Controlled Substances Acts, and Aiding and Abetting, announced U.S. Attorney Dana J. Boente.
DANTE CARSON, pled guilty to Count 1 - RICO Conspiracy; Count 5 - Conspiracy to Possess Firearms During and In Relation to Crimes of Violence and Drug Trafficking Offenses; and Count 10 - Aiding and Abetting in the Unlawful Acquisition of a Firearm.
As part of the RICO Conspiracy, DANTE CARSON admitted that both he and other Murder Squad members participated in the murder Reginald Francois on April 1, 2010. DANTE CARSON pled guilty pursuant to an 11(c)(1)(C) plea agreement where he will be sentenced to a term of imprisonment of 360 months. The Court may accept or reject the plea agreement.DWIGHT CARSON, pled guilty to Count 1 - RICO Conspiracy; Count 2 - Conspiracy to Distribute and Possess with Intent to Distribute Cocaine Base; Count 5 - Conspiracy to Possess Firearms During and In Relation to Crimes of Violence and Drug Trafficking Offenses; and
Count 11 - Aiding and Abetting in the Unlawful Acquisition of a Firearm. DWIGHT CARSON pled guilty pursuant to an 11(c)(1)(C) plea agreement where he will be sentenced to a term of imprisonment of 240 months. The Court may accept or reject the plea agreement.This case arose out of a joint investigation by ATF, FBI, and the Jefferson Parish Sheriff’s Office. This investigation targeted an area which exhibited a disproportionate amount of violent crimes and narcotics trafficking. During the course of the investigation, specific individuals were identified as the main perpetrators of many of the violent acts and much of the narcotics distribution. Federal and local law enforcement officers interviewed witnesses, confidential informants, as well as state defendants, relative to the targeted individuals. It was revealed that a group of individuals operated in various areas of Harvey Louisiana, specifically the neighborhoods known as Scottsdale and Haydel. This group controlled these areas for their narcotics distribution activities through violence and through threats of violence, to include murder, attempted murder, obstruction and assaults. They were referred to as the Harvey Hustlers and/or Murder Squad.
The “Murder Squad, “ or MS, was a faction of the Harvey Hustlers composed primarily of individuals residing in the Harvey, Louisiana area of Jefferson Parish, Louisiana. While they primarily operated on the Westbank of Jefferson Parish, members conducted business in other parts of the Eastern District of Louisiana. The “Harvey Hustlers” also referred to as “HH” originated in the Harvey area in the mid-1980s. Members of the organization “hustled” meaning they distributed illegal narcotics. The original goal of the Harvey Hustlers was to make money from sales of illegal narcotics.
Sentencing for the named defendants is set for April 18, 2013 before United States District Judge Lance M. Africk.
The case was investigated by the Bureau of Alcohol, Tobacco and Firearms, Federal Bureau Investigation, and the Jefferson Parish Sheriff’s Office. The case is being prosecuted by Assistant United States Attorneys Duane A. Evans and Bill McSherry.
(Download Plea - Dante Carson )
(Download Plea - Dwight Carson )
Woman Sentenced to Prison for Fabricating Hospital Insurance ClaimsRead the Press Release
Raleigh - United States Attorney Thomas G. Walker announced that in federal court today before United States District Judge Terrence W. Boyle, MEDINA K. BLANTON, 39, of Hubert, NC, was sentenced to a 1 year and one day in prison, followed by 3 years of supervised release, on the charge of Wire Fraud, in violation of Title 18, United States Code, Section 1343. BLANTON was also ordered to make restitution to insurer AFLAC in the amount of $234,295.00.
Pursuant to the Defendant’s plea of guilty to the one-count Criminal Information, the Government proved that between September of 2004 and April of 2010, Blanton devised a scheme to defraud AFLAC, an insurance company, by filing $234,295.00 in false Hospital Confinement Indemnity claims. The evidence showed that the defendant and her family members were covered beneficiaries under a Hospital Confinement Indemnity insurance policy (hereafter “the Policy”) with AFLAC. In the event that BLANTON or her family members were admitted as an inpatient to a hospital, the Policy covered BLANTON and her family for certain expenses incurred during the period of the hospital admission. The defendant created and filed claims with AFLAC stating that BLANTON and certain members of her family had been admitted to a hospital as an inpatient for periods of days and weeks when, in fact, BLANTON and her family members were not admitted to a hospital as an inpatient during the times listed in the claims. To carry out the scheme BLANTON fabricated medical documentation to make it appear as though BLANTON and her family members had been admitted to a hospital. BLANTON received and deposited funds from AFLAC in the total amount of $234,295 relating to the false and fraudulent claims. BLANTON spent the money on her own interests.
Investigation of this case was conducted by the Federal Bureau of Investigation and the North Carolina Department of Insurance. Assistant United States Attorney William M. Gilmore represented the United States.
Winchester Man Indicted for First Degree MurderRead the Press Release
COEUR D’ALENE – Kenneth D. Broncheau, 48, of Winchester, Idaho, was indicted yesterday by a federal grand jury in Coeur d’Alene for first degree murder, U.S. Attorney Wendy J. Olson announced. An initial appearance in federal court has not been set.
The indictment alleges that on June 21, 2012, within the boundaries of the Nez Perce Indian Reservation, Broncheau, an enrolled tribal member, shot and killed Carol Haskell, his mother. Broncheau was detained at the scene. He is currently in the custody of Nez Perce Tribal Police.
The charge of first degree murder is punishable by life in prison and a maximum fine of $250,000.
The case was investigated by the Federal Bureau of Investigation, Nez Perce Tribal Police, Idaho State Police, and the Lewis County Sheriff’s Office.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Wilmington Man Convicted for Drug Sale and Using Firearm During and in Relation to the Drug SaleRead the Press Release
RALEIGH- United States Attorney Thomas G. Walker announced that in federal court today WILLIS SARVIS, 34, was convicted by a jury of Distrbution of PCP in violation of Title 21, United States Code, Section 841(a)(1), and Using and Carrying a Firearm during and in relation to a drug trafficking crime in violation of Title 18, United States Code, Section 924(c). Previously, SARVIS pled guilty to one count of felon in possession of a firearm in violation of Title 18, United States Code, Sections 922(g)(1) and 924.
On March 18, 2011, Wilmington officers responded to the Hillcrest Housing Community regarding a man that was shot, and ultimately died from his injuries. The investigation revealed that during the course of a drug deal, the victim had been shot twice with a Romarm/Cugir, WASR, 7.62 x 39 mm assault rifle. There were numerous shell casings from the rifle in the area and the investigation revealed two homes were also struck with bullets. The investigation quickly focused on SARVIS who had left the rifle with a friend who gave the rifle over to law enforcement. Police located SARVIS and took him into custody where he confessed to selling the deceased two small bags of PCP and shooting him when an altercation arose between them. SARVIS claimed the shooting was in self-defense.
Investigation of this case was conducted by the Wilmington Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Special Assistant United States Attorney Charity Wilson is serving as prosecutor for the government. Ms. Wilson is a prosecutor with the New Hanover County District Attorney's Office. District Attorney Ben David has assigned her to the United States Attorney's Office to prosecute federal Project Safe Neighborhood cases and other violent crime cases.
West Brookfield Sex Offender Pleads Guilty to Child Pornography ChargesRead the Press Release
BOSTON – A West Brookfield man with a prior child pornography conviction was sentenced yesterday in U.S. District Court in Springfield.
Christopher Boucher, 44, pleaded guilty to possession of material involving the sexual exploitation of a minor and was sentenced to 10 years in prison, to be followed by 10 years of supervised release with special conditions relating to sex offenders.
In January 2012, the Massachusetts State Police executed a state search warrant at Boucher’s former residence in Ware and seized a laptop that contained a video depicting multiple rapes of a young girl known as “Vicky.” Boucher then told the police that he used file-sharing programs on the Internet to obtain images of children from 12 to 15-years-old engaged in sexual acts. Boucher also said that as recently as a few days ago, he used the e-Mule file-sharing program to download a child pornography video belonging to the “Vicky” series.
In 2000, Boucher pleaded guilty in federal court to possession of child pornography. In 2001, he was sentenced to five years of probation with six months in home detention.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz’s Springfield Branch Office.
United States Attorneys Recognize Southwest Virginia Drug Task ForceRead the Press Release
BIG STONE GAP, VIRGINIA -- Timothy J. Heaphy, United States Attorney for the Western District of Virginia, and William Killian, United States Attorney for the Eastern District of Tennessee, held a ceremony yesterday, in Wise, Virginia, to recognize the contributions of the Southwest Virginia Drug Task Force and its officers, in the investigation of the Rodney Mitchell Drug Trafficking Organization.
The Southwest Virginia Drug Task Force, comprised of law enforcement officers from the Virginia State Police, Lee County Sheriff’s Office, Dickenson County Sheriff’s Office, Wise County Sheriff’s Office, Scott County Sheriff’s Office, Big Stone Gap Police Department, and the Wise Police Department, was recognized by both United States Attorney’s Offices for assisting in a joint investigation by federal, state and local authorities from Tennessee and Virginia which culminated in the federal prosecution of Rodney Mitchell and twenty-two others in the United States District Court for the Eastern District of Tennessee in Greeneville and the prosecution of nine individuals in the United States District Court for the Western District of Virginia in Big Stone Gap.
The Rodney Mitchell Drug Trafficking Organization was responsible for the distribution of large quantities of cocaine, prescription pain medication and marijuana in Southwest Virginia and Northeast Tennessee and had sources of supply in Detroit and Florida. More than 80 individuals were prosecuted as a result of the investigation in state and federal courts in Tennessee and Virginia.
“The officers involved with this task force put aside jurisdictional and agency boundaries to bring Rodney Mitchell and his co-conspirators to justice,” US Attorney Heaphy said today. “Impactful prosecutions like these help make our communities safer and send a powerful message about the benefits of law enforcement cooperation. I thank all the investigators who contributed to this important result.”"I am very proud of the cooperative efforts of the investigators from the numerous local, state and federal law enforcement agencies in Tennessee and Virginia. Their hard work resulted in these charges and guilty pleas of members of one of the largest drug conspiracies in east Tennessee," stated U.S. Attorney Bill Killian.
Agencies involved in the investigation included the Southwest Virginia Drug Tas Force, Tennessee Second Judicial Drug Task Force, Sullivan County, Tennessee Sheriff’s Office, Sullivan County, Tennessee District Attorney’s Office, and the Wise County, Virginia Commonwealth Attorney’s Office.Two Men Indicted for Child Exploitation OffensesRead the Press Release
Child Pornography Video Investigation Snares Two Cobb County Men
ATLANTA – A Cobb County school bus driver and a college music instructor were arraigned today before United States Magistrate Judge Janet F. King on two separate indictments for child pornography charges stemming from their ordering and receiving videos containing child pornography from a foreign company. Stanley Keith Johnson, 57, of Mableton, Georgia, is charged with one count of producing child pornography, one count of receiving child pornography, and one count of possessing child pornography. In a separate case, Jerry Michael Lanier, 51, of Smyrna, Georgia, is charged with one count of receiving child pornography and one count of possessing child pornography. The indictments were returned by a federal grand jury on January 8, 2013.
“Child pornography preys on the most innocent and vulnerable members of society,” said United States Attorney Sally Quillian Yates. “These men are charged with participating in the victimization of children when they received child pornography through the mail. These cases reflect our commitment to end this horrendous cycle of victimization.”
“Postal Inspectors have been on the forefront aggressively investigating cases involving the sexual exploitation of children through the U.S. mail. We will continue our fight against sexual predators who insist on dissolving the innocence of children.” said Keith Morris, Postal Inspector in Charge of the Atlanta Division.
“The victimization of children by purveyors of child pornography is a growing problem in Georgia and assisting state, local, and federal agencies in identifying and prosecuting those involved in the child porn trade is a priority for the GBI and its Child Exploitation and Computer Crimes Unit. The GBI is proud to have assisted the United States Postal Inspection Service in this investigation,” said Vernon Keenan, GBI Director.
According to United States Attorney Yates, the charges and other information presented in court:
- From November 2010 to April 2011, Stanley Keith Johnson placed orders with a foreign company for approximately 180 DVDs containing videos of nude boys between the ages of 8 and 14. Johnson received those videos through the United States Postal Service. A search warrant executed in December 2012 revealed that he not only possessed child pornography on his computer, but that he had also produced images of child pornography as far back as May 2004. Johnson was working as a bus driver for Cobb County Public Schools during all the times listed in the indictment.
- Between January 2010 and January 2011, Jerry Michael Lanier also placed orders with the same foreign company. He ordered and received through the mail approximately 19 DVDs containing child pornography. A search warrant executed at his residence December 2011 revealed that he had numerous videos of child pornography on his computer. Lanier was working as a music instructor at the University of West Georgia when the search warrant was executed.
The charge of producing child pornography carries a mandatory minimum period of confinement of 15 years and a maximum sentence of 30 years in prison. The charge of receiving child pornography carries a mandatory minimum confinement period of 5 years and a maximum term of 20 years in prison. The charge of possessing child pornography carries a maximum sentence of 10 years in prison. Each charge carries a fine of up to $250,000 and a period of supervised release from 5 years to life. 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 indictments only contain charges. The defendants are presumed innocent of the charges and it will be the government's burden to prove each defendant’s guilt beyond a reasonable doubt at trial.
These cases are being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney's Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
These cases are being investigated by the United States Postal Inspection Service with assistance from the Georgia Bureau of Investigation, Cobb County Police Department, and Smyrna Police Department.
Assistant United States Attorney Paul R. Jones is prosecuting the cases.
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.
Toledo Man Faces Charges for Having 18 Firearms, Body Armor and 40,000 Rounds of Ammunition Despite Manslaughter ConvictionRead the Press Release
A criminal indictment was unsealed today charging Toledo resident Richard Schmidt with a variety of crimes related to his possession of 18 firearms, body armor and more than 40,000 rounds of ammunition despite a previous conviction for the crime of manslaughter, 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.
Schmidt, 47, was arrested in December following searches of his home and business. He was convicted of manslaughter in 1990 in the Lucas County Court of Common Pleas. Schmidt was forbidden from possessing firearms, ammunition or body armor as a result of his conviction.
“It is deeply troubling that law enforcement found this man, with a prior homicide conviction, in possession of an arsenal,” Dettelbach said. “We owe the FBI and our other law enforcement partners our thanks that they caught this man, with 18 firearms -- some of them assault weapons – high-capacity magazines, more than 40,000 rounds of ammunition, and a bulletproof vest stored in a locked room in a mall, before anyone was hurt.”
Anthony said: “Richard Schmidt is not only accused trafficking in counterfeit goods but also is accused of being a felon in possession of a significant quantity of firearms and ammunition. We are pleased that the FBI, U.S. Attorney's Office, and our partners were able to take Richard Schmidt off the street.”
Count 1 charges that Schmidt, on Dec. 21, 2012, possessed approximately 300 rounds of ammunition and four firearms: two Ruger P95 9 mm pistols, a Sig Sauer P250 9 mm pistol and a Taurus PT145 pistol.
Count 2 charges that Schmidt, on Dec. 28, 2012, possessed approximately 40,188 rounds of ammunition and 18 firearms: a Stag Arms AR-15 rifle, an Armalite AR-10 rifle, a Mossberg 500 12-gauge shotgun, a Remington 870 Express 12-gauge shotgun, a Winchester M94 30/30 rifle, a Winchester M190 .22-caliber rifle, a Remington M700 rifle, a Mossberg M535 12-gauge shotgun, a Russian American Armory SAIGA 12-gauge shotgun, a Federal Arms Corporation FA 91 .308-caliber rifle, an Eagle Arms 5.56-caliber rifle, a Rock River Arms AR-15 rifle, a Ruger Mark II pistol and a Sturm-Ruger .375 magnum pistol.
Count 3 charges that Schmidt, on Dec. 28, 2012, possessed body armor.
Count 4 charges that between Sept. 30, 2011 and Dec. 21, 2012, Schmidt trafficked in counterfeit goods, specifically goods with counterfeit logos and brand-name markings of the National Football League, Nike, Reebok and Louis Vuitton.
These items were found following searches of Schmidt’s home on Marlow Road in Toledo, the store he operates, Spindletop Sports Zone, in Bowling Green, Ohio and trailers in the parking lot of the shopping center that includes Spindeltop Sports Zone. Investigators also recovered seven high-capacity magazines during the search, according to court records.
The United States Attorney’s Office for the Northern District of Ohio filed 176 indictments for violations of federal firearms laws, with the average sentence being more than six years in prison.
This case is being prosecuted by Assistant U.S. Attorneys Duncan T. Brown and Linda H. Barr following an investigation by the FBI, with assistance from Immigration and Customs Enforcement – Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Border Patrol, the Ohio State Highway Patrol, the Toledo Police Department, the Bowling Green Police Department and the Wood County Sheriff’s Office.
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 records, the defendant’s role in the offenses and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Are Sentenced After Being Convicted of Carjacking and Kidnapping Three Children, Ages 2 ½, 1 ½ and 2 MonthsRead the Press Release
Montgomery, Alabama - Joshua Roland Fuller Gilley, 26, of Enterprise, Alabama, and Westly Robert Rogers, 25, of Ozark, Alabama, and Melissa Lynn Mione McGee, 37, of Daleville, Alabama have all been sentenced after pleading guilty to carjacking an Isuzu Rodeo in which three children, ages, 2 ½ years, 1 ½ years, and 2 months old were riding in the backseat; and to kidnapping those same three young children, announced U.S. Attorney, George L. Beck, Jr..
Gilley was sentenced by U.S. District Judge Mark Fuller to 46 months imprisonment after pleading guilty to carjacking. Rogers was sentence by Judge Fuller to 32 months imprisonment after pleading to carjacking and McGee was sentence by the same judge to 210 months imprisonment after pleading guilty to kidnapping.
Around May 21, 2011, the victims, J.G. and A.L. were first introduced to McGee by someone they had met over the internet named “Nate.” McGee claimed to be a human resources representative from Memphis, Tennessee and offered to help the couple find jobs and a residence near Ozark, Alabama. As a result of this offer, the victims traveled to Ozark. In Ozark, the victims and their three children stayed in a motel room at the Ozark Inn paid for by McGee. During their stay at the Ozark Inn, McGee personally met with the couple, provided them small amounts of money and food and promised to get J.G. a job paying $17 an hour.
On Sunday, June 5, 2011, the victims and the three children drove to a rural area outside of Brundidge, Alabama to meet with McGee and take possession of a mobile home McGee had promised them. When they arrived, McGee introduced them to Rogers and Gilley, who McGee referred to as “Mike” and “Nate”. Rogers and Gilley immediately assaulted the young couple and forcibly removed them from their Isuzu Rodeo. Rogers and Gilley then climbed into the Isuzu and drove off with the three children still in the back seat. McGee drove a white SUV ahead of Rogers and Gilley and later took custody of the two month old baby, while the 2 ½ year old and the 1 ½ year old were dumped in the driveway of a residence in Black, Alabama. Upon finding the two older children, the occupants of the residence brought the children to a nearby hospital.
Less than 48 hours after the crime occurred, law enforcement officers were able to track down the baby to a private residence in Dothan, Alabama. The woman who lived there told authorities that she had agreed to watch the baby for McGee, who had claimed the stolen baby was her own child.
“These three defendants, not only endangered these young children by kidnapping them from their mother, but they dumped the two older children in a driveway in rural Alabama, showing no concern for their welfare,” said U.S. Attorney, George L. Beck, Jr.. “Their behavior was inexcusable and they should spend substantial time in prison. We are proud of our judiciary in this case for sending a message that these crimes will not be tolerated.”
“The defendants’ predatory nature and their willingness to expose this family to such peril and harm is a serious criminal act which will not be tolerated by society,” stated Stephen E. Richardson, Special Agent in Charge of the Federal Bureau of Investigation, Mobile Division. “The FBI’s commitment to protect and ensure the safety of families and children is unwavering. We are pleased that these criminals face serious prison time.”
This case was investigated by the Federal Bureau of Investigation, which is being assisted by the Dale County Sheriff’s Office, the United States Marshals Service, the Geneva County Sheriff’s Office, the Alabama Bureau of Investigation, the Ozark Police Department, the Walton County (Florida) Sheriff’s Office, the Houston County Sheriff’s Office, the Dothan Police Department, the National Center for Missing and Exploited Children, and other law enforcement partners. This case has been prosecuted by Assistant United States Attorneys Kent Brunson and Nathan Stump.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Statement of United States Attorney Carmen M. Ortiz Regarding the Death of Aaron SwartzRead the Press Release
BOSTON – As a parent and a sister, I can only imagine the pain felt by the family and friends of Aaron Swartz, and I want to extend my heartfelt sympathy to everyone who knew and loved this young man. I know that there is little I can say to abate the anger felt by those who believe that this office's prosecution of Mr. Swartz was unwarranted and somehow led to the tragic result of him taking his own life.
I must, however, make clear that this office's conduct was appropriate in bringing and handling this case. The career prosecutors handling this matter took on the difficult task of enforcing a law they had taken an oath to uphold, and did so reasonably. The prosecutors recognized that there was no evidence against Mr. Swartz indicating that he committed his acts for personal financial gain, and they recognized that his conduct - while a violation of the law - did not warrant the severe punishments authorized by Congress and called for by the Sentencing Guidelines in appropriate cases. That is why in the discussions with his counsel about a resolution of the case this office sought an appropriate sentence that matched the alleged conduct - a sentence that we would recommend to the judge of six months in a low security setting. While at the same time, his defense counsel would have been free to recommend a sentence of probation. Ultimately, any sentence imposed would have been up to the judge. At no time did this office ever seek - or ever tell Mr. Swartz's attorneys that it intended to seek - maximum penalties under the law.
As federal prosecutors, our mission includes protecting the use of computers and the Internet by enforcing the law as fairly and responsibly as possible. We strive to do our best to fulfill this mission every day.
St. Paul Man Indicted for Robbing US BankRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 47-year-old St. Paul man was indicted in connection with the December 13, 2012, armed robbery of the US Bank branch located at 711 Cleveland Avenue South in St. Paul. David Judin Greer was specifically charged with one count of armed bank robbery and one count of brandishing a firearm during a crime of violence.
The indictment alleges that on December 13, Greer stole $3,952 from the bank after brandishing a .38-caliber revolver. According to a law enforcement affidavit filed in the case, a man, later identified as Greer, walked into the bank at approximately 2:00 p.m. He allegedly approached the teller counter, pulled the gun, and demanded twenties, fifties, and one-hundred-dollar bills. The teller took money from the cash drawer and stuffed it into the white plastic bag that Greer provided. After reportedly demanding and receiving even more money, he fled the premises.
Immediately following the robbery, the Federal Bureau of Investigation released to the public digital images of the robber. Later that same day, the FBI received a telephone call from an anonymous individual who identified the robber as Greer. Authorities then began surveillance on Greer’s residence.
On December 29, 2012, the FBI received a call from the St. Paul Police Department, indicating officers there had just conducted a welfare check on Greer at the request of a family member. Officials subsequently transported Greer to Regions Hospital, where Greer reportedly gave law enforcement consent to search his residence. There, officers located the revolver used in the bank robbery. It was hidden above the duct work in the basement.
If convicted, Greer faces a potential maximum penalty of 25 years in prison for armed robbery and seven years for brandishing of a firearm. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the FBI and the St. Paul Police Department. It is being prosecuted by Assistant United States Attorney Clifford B. Wardlaw.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Sprint Cell Phone Fraud Lands Final Defendant in Federal PrisonRead the Press Release
HOUSTON – Four Houston area residents have been sentenced for conspiring to commit mail fraud involving the theft of Sprint cellular phone customer data and telephones, United States Attorney Kenneth Magidson announced today. Frederick Sears, 38, Lakreshia Shana Smith, 28, and Vernon R. Parker Jr., aka PJ or Chad, 33, all of Houston, each pleaded guilty July 20, 2012, to one count of conspiracy to commit mail fraud. Troy Alexander Tipton, 21, of Tomball, pleaded guilty Aug. 2, 2012, to aiding and abetting access device fraud.
Today, Judge Lee H. Rosenthal handed Parker a sentence of 51 months to be followed by a three-year-term of supervised release. Last month, Judge Rosenthal sentenced Smith and Tipton each to three years of probation while Sears was ordered to serve 18 months in federal prison. Restitution was also ordered in the amount of 131,789.44 for all defendants.
Beginning in April 2011 through Oct. 7, 2011, Tipton, an employee of Modern Wireless, sold at least 400 customer accounts, including their access information, to Parker. Parker then directed Sears, Smith and others to make claims for replacement or additional cellular telephones valued at $400-500 each using the stolen customer accounts.
Sears and Smith were arrested after agents followed them around the Houston area where they picked up packages containing fraudulently obtained cellular telephones. Conspirators had placed phone and Internet orders for either replacement phones (claiming phones were lost or stolen) or additional phones to be charged to unknowing customers of Sprint. The packages were mailed from Sprint locations outside of Texas to various hotels and apartments as directed by the conspirators. The total loss to Sprint is estimated at more than $136,000 attributable to the Parker organization.
Parker will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The convictions are the result of an investigation conducted by the Secret Service. Assistant U.S. Attorney Martha Minnis is prosecuted the case.
Sneads Man Indicted for Manufacturing Child PornographyRead the Press Release
PANAMA CITY, FLORIDA– A federal grand jury has returned a four-count indictment charging Donyel James Fitts, 28, of Sneads, with manufacturing child pornography. The indictment was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Counts One and Two of the indictment allege that, on June 20 and 21, 2012, Fitts persuaded, induced, enticed, and coerced a child to engage in sexually explicit conduct, for the purpose of photographing the minor victim. Counts Three and Four of the indictment allege that Fitts videotaped a child engaged in sexually explicit conduct on October 16, 2012, and October 19 2012, respectively.
For each count, if convicted, Fitts faces a mandatory sentence of 15 to 30 years in prison, a life term on supervised release, and a $250,000 fine.
This case is being investigated by the U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Jackson County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Gayle Littleton.This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney’s 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 exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An indictment is merely a formal charge by the grand jury. Every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt at trial.
Seventeen Face Federal Methamphetamine ChargesRead the Press Release
A federal grand jury in Benton, Illinois, has charged 17 individuals with methamphetamine related offenses, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Those charged with providing pseudoephedrine pills to methamphetamine manufacturers are: Dennis Bowen, 40, Johnston City, Illinois, Bridgett L. Garrington, 29, Johnston City, Illinois, Dana L. Gulley, 40, Herrin, Illinois, Dustin J. Gulley, 22, Herrin, Illinois, Sherri Gunter-Perkins, 40, West Frankfort, Illinois, Casey Heath, 24, Herrin, Illinois, Dawn Jacobsen, 37, Carbondale, Illinois, Karla Jones, 31, Herrin, Illinois, Doyle Massengill, 53, Herrin, Illinois, Stephanie Patrick, 22, Elkville, Illinois, Keith Pichelman, 24, Carbondale, Illinois, Richard Robinson, 45, Herrin, Illinois, Amber Scro-Cardwell, 28, West Frankfort, Illinois, Robin Sides, 27, Herrin, Illinois, Eric Smothers, 52, Herrin, Illinois, Mary Smothers, 45, Herrin, Illinois, and Julie Woolum, 37, Benton, Illinois.
All those charged face up to 20 years imprisonment and a $250, 000 fine if convicted.
An indictment is a formal charge against a defendant. 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 investigation in this case was conducted by the Drug Enforcement Administration, the Illinois State Police, Southern Illinois Drug Task Force, United States Marshals Service, Franklin County Sheriff’s Office, Williamson County Sheriff’s Office, Jackson County Sheriff’s Office, Benton Police Department, Royalton Police Department, West City Police Department, Williamson County State’s Attorney’s Office, Franklin County State’s Attorney’s Office, and the Jackson County State’s Attorney’s Office.
The case is being prosecuted by Assistant United States Attorney Tom Leggans.
San Felipe Pueblo Man Pleads Guilty to Federal Assault ChargesRead the Press Release
ALBUQUERQUE – Earlier today, Valentino Sanchez, 33, a member and resident of San Felipe Pueblo, N.M., pled guilty to two federal assault charges under a plea agreement with the U.S. Attorney’s Office.
Sanchez pled guilty to assault with a dangerous weapon and assault resulting in serious bodily injury. In entering his guilty plea, Sanchez admitted assaulting a San Felipe Pueblo woman on May 14, 2012, with a stick. He also admitted that the victim sustained serious bodily injuries as a result of the assault. The offenses occurred on San Felipe Pueblo land.
Court records reflect that Sanchez was arrested on May 22, 2012, after investigation revealed that he had assaulted the victim by repeatedly striking and punching her on the head and back with his hands, kicking her, and striking her on the head and back with a stick. As a result of the assault, the victim suffered an orbital fracture to the right side of her face and a small traumatic subarachnoid hemorrhage to the left front part of the brain.
Sanchez has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Sanchez faces a maximum penalty of ten years of imprisonment.
The case was investigated by the Bureau of Indian Affairs, Office of Justice Services, Southern Pueblos Agency, and is being prosecuted by Assistant U.S. Attorney Presiliano A. Torrez.
Rockland County Accountant Sentenced to Three Years in Prison for $6 Million Ponzi SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York announced today that ALAN RITTER, a self-employed accountant in Rockland County, New York, was sentenced today in Manhattan federal court to three years in prison in connection with his operation of an 11-year, $6 million Ponzi scheme. RITTER pled guilty to three counts of wire fraud in September 2012 before U.S. Magistrate Judge Debra Freeman. U.S. District Judge Paul A. Crotty imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Alan Ritter, like other Ponzi schemers before him, added personal betrayal to his fraud by fleecing unsuspecting victims who were friends and clients. He will now face the penalty for his conduct.”
According to the Information and statements made during the plea proceeding:
RITTER operated his own accounting practice in Rockland County, New York. In 2001, he suffered more than $500,000 in losses from an unrelated business venture. In order to cover those losses, RITTER solicited hundreds of thousands of dollars in loans from friends and clients of his accounting practice, falsely telling them that he intended to use the money to invest in real estate ventures. For the next 11 years, RITTER operated a Ponzi scheme in which he borrowed more and more money for purported business ventures that he used the money to cover the interest payments on the original loans he secured, and to pay for his own personal expenses.
RITTER also embezzled funds entrusted to him by several clients, using their money to cover the interest payments on the Ponzi scheme loans and to pay for his personal expenses. For example, in November 2011, RITTER was given $650,000 on behalf of a family and was instructed to use a portion of it to satisfy several of the family’s outstanding debts. The remainder of the funds was to be held pending further instructions. Instead, RITTER embezzled at least $530,000 of the original $650,000.
In addition to his sentence, Judge Crotty sentenced RITTER, 70, of Monsey, New York, to three years of supervised release and ordered him to pay restitution and forfeiture, which will be determined at a later date.
Mr. Bharara praised the investigative work of the Criminal Investigators of the United States Attorney’s Office for the Southern District of New York.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. 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.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Michael A. Levy is in charge of the prosecution.
Rochester Man Sentenced in Bail Jumping CaseRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Tryn Parker, 40, of Rochester, N.Y., who was convicted of failing to surrender for the service of a sentence, was sentenced to 18 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorneys Marisa J. Miller and Tiffany H. Lee, who handled the case, stated that the defendant was convicted of conspiracy to commit bank fraud and sentenced by Judge Larimer to a prison term in August 2010. At Parker’s request, the Court allowed the defendant to remain released on bail, on the condition that Parker surrender himself to the United States Marshals Service or the Bureau of Prisons for service of his sentence. The defendant failed to surrender at the designated time and facility. Thereafter, in February 2011, the defendant was arrested in Tuscaloosa, Alabama, where he was found to be using false identification. This sentence will run concurrent to the original sentence of 30 months in prison.
The sentencing is the culmination of an investigation on the part of the United States Marshals Service, under the direction of Marshal Charles Salina.
Restitution Payment Obtained from Sale of Former Home of Defendant Paul BarthRead the Press Release
– Proceeds from sale of house will go toward restitution for the Crusade for Children
LOUISVILLE, Ky. – The United States District Court Clerk located in Louisville, Kentucky will receive payment this week from the sale of the former home of former McMahan Fire Chief, Paul Charles Barth, in the amount of $130,410.56, to be applied toward the restitution owed the WHAS Crusade for Children and the McMahon Fire Protection District, announced David J. Hale, United States Attorney for the Western District of Kentucky. In addition, another $66,198.01 from the sale will be deposited in the Court Clerk’s registry account and may also be available for restitution.
“This is a significant first step toward making the Crusade for Children whole again,” stated U.S. Attorney Hale. “We will pursue further measures to collect additional funds from Barth for restitution beyond today’s payment until every dollar has been restored to the charity. In fact, we will request that the Court apply the $66,198.01 toward restitution, which will leave very little restitution outstanding.”
Barth, the former McMahan Fire Department Chief, began serving a 41 months sentence in federal prison followed by three years of supervised release on December 20, 2013. He was sentenced on November 19, 2012 in federal court by U.S. District Judge John G. Heyburn, II. On June 21, 2012, Barth pleaded guilty to one count of mail fraud, two counts of wire fraud, and 12 counts of money laundering. He was ordered to pay restitution to his victims, the WHAS Crusade for Children and the McMahon Fire Protection District (MFPD). The restitution order in favor of the Crusade was $190,000, and the order in favor of MFPD was $8,277, for a total of $198,277.
According to the United States Attorney’s Office, the private sale and transfer of Barth’s real estate property located in Jeffersontown, Kentucky was completed yesterday. The United States and American Alternative Insurance Corporation, insurer of McMahon Fire District, have released liens and claims to the real estate. In addition to the $130,410.56 to be paid directly for restitution, an additional $66,198.01 from the proceeds from the sale of the property will be paid into a registry account held by the United States District Court Clerk’s Office in Louisville, Kentucky. The United States Attorney’s Office will move the Court to apply these additional funds to the restitution owed by Barth. American Alternative Insurance Corporation may also assert an interest in the additional proceeds. However, if the United States’ motion is successful, a total of $196,608.57 will have been applied toward the outstanding $198,277 restitution obligation, excluding interest.
This case was prosecuted by Assistant United States Attorneys David Weiser and Bryan Calhoun. The restitution collection efforts were led by Assistant United States Attorney Joe Ansari. The case was investigated by the United States Secret Service - Kentucky Electronic Crimes Task Force, which includes the University of Louisville Police Department, the United States Postal Inspection Service, and the Criminal Investigation Division of the Internal Revenue Service.
Reserve Deputy Constable Arrested for Aiding Cocaine LoadRead the Press Release
HOUSTON – Tomas Roque, a reserve deputy constable with Harris County Precinct 6, has been arrested following the return of an indictment alleging charges of aiding the possession of a controlled substance and a violation of the Hobbs Act, United States Attorney Kenneth Magidson announced today.
Roque, 26, of Houston was arrested this morning and is expected to appear before U.S. Magistrate Judge Frances H. Stacy later today or tomorrow.
The two-count indictment, returned Jan. 8, 2013, and unsealed upon his arrest today, alleges Roque aided in the delivery of cocaine in the Houston area and accepted money for the protection service.
Roque is alleged to have aided in the possession of cocaine on or about Dec. 6, 2012, and allegedly received a payment of $2000 for the protection he provided.
If convicted of possession with the intent to distribute, he faces no less than 10 years and up to life in prison as well as a possible $10 million fine. For extortion under color of law (Hobbs Act violation), he could also receive up to 20 years imprisonment and a $250,000 fine, if convicted.
The operation was a combined public corruption task force effort conducted by the FBI, the Texas Rangers, the Houston Police Department. Homeland Security Investigations Human Smuggling and Trafficking Unit and Harris County Precinct 6 Constable’s Office assisted the investigation. The case is being prosecuted by Assistant United States Attorney James McAlister.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Red Lake Man Indicted for Endangering Baby’s HealthRead the Press Release
MINNEAPOLIS—A federal indictment unsealed earlier today charges a 33-year-old Red Lake man with endangering the health of a baby. On January 8, 2013, Chad Joseph Sumner was charged with one count of child endangerment. The indictment was unsealed following Sumner’s initial appearance in court.
The indictment alleges that on August 17, 2011, Sumner intentionally placed the child in a situation likely to be harmful. As a result, the infant suffered substantial physical harm, including head trauma and skull fractures.
If convicted of the crime, Sumner faces a potential maximum penalty of five years in federal prison. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the Red Lake Tribal Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Deidre Y. Aanstad.
Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney's Office.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Pottawattamie County, Iowa Resident Sentenced to 65 Months for Bank RobberyRead the Press Release
COUNCIL BLUFFS, IA- On January 16, 2013, William Martin Fiorito, Jr., a 45 year old resident of Pottawattamie County, Iowa, was sentenced by United States District Judge John Jarvey to 65 months imprisonment for bank robbery. Judge Jarvey also ordered Fiorito to serve a three year term of supervised release following incarceration. The defendant pled guilty on October 4, 2012, admitting to the commission of bank robbery by entering Peoples National Bank located at 333 West Broadway, Council Bluffs, Iowa on October 11, 2011, where he produced a note demanding money and advising he had a firearm. The teller at the time of the robbery observed what appeared to be the grips of a handgun protruding from the top of Fiorito’s waistband, and the teller provided money to Fiorito as demanded. Fiorito left the bank and entered a second Peoples National Bank located at 1600 West Broadway, Council Bluffs, Iowa, a few minutes later. Fiorito again demanded money, but left the second bank without obtaining any money.
The investigation was conducted by the Council Bluffs, Iowa, Police Department, Pottawattamie County Sheriff’s Office, Pottawattamie County Attorney=s Office, and the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Pittsburgh Man Sentenced to 15 Years in Prison for Distributing Bomb PartsRead the Press Release
PITTSBURGH - A resident of Pittsburgh has been sentenced in federal court to 188 months imprisonment followed by three years supervised release on his conviction of distributing information relating to explosives with the intent that it be used for a crime of violence, United States Attorney David J. Hickton announced today.
Senior United States District Judge Donetta W. Ambrose imposed the sentence on Michael Steven Cech, 42.
According to information presented to the court, on May 18, 2012, a government confidential informant met with Cech. During the recorded conversation, the informant indicated to Cech that he was implicated in a Federal drug case and that he had a need for a bomb in order to prevent a witness from testifying against him. Cech indicated that would be “no problem,” and that he was going to put nails in the bomb so that what the explosion did not “get,” the nails would. Cech indicated to the informant that he had built bombs “many times,” and that all the informant would have to do was to “light it and throw it.” Further, Cech promised that his bomb would work. When the informant asked Cech what he wanted in exchange for the bomb, Cech stated that he wanted a .45 caliber pistol and $300. On May 25, 2012, Cech met the informant at a parking lot in Monroeville, Pa. When Cech arrived, he was in possession of components of a bomb he intended to assemble. The components included a pipe, two endcaps, serrated nails, and candle wicks. Cech then proceeded to instruct the informant how to assemble the bomb. During the recorded conversation, Cech told the informant how to handle gunpowder, how to physically put the bomb together, where to put the explosive gun powder, when to place the nails within the bomb, and how and where to drill the hole in the endcap to place the fuse into the bomb. Cech assured the informant that the bomb that he was demonstrating the assembly on would be functional, and that he had built 30 of them and all 30 had exploded as designed. Cech stated that he preferred that no kids were killed when the informant deployed the bomb, because he liked kids, but Cech stated, “it is what it is.”
Assistant United States Attorney James T. Kitchen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Cech.
Pennsylvania Man Sentenced to Prison for Filing Fraudulent Tax ReturnsRead the Press Release
PHOENIX – Espiridion Adrian Lugo, 40, of Pittsburgh, Pa., was sentenced by U.S. District Judge Neil V. Wake on Jan. 14, 2013, to 54 months of prison and was ordered to pay $128,388 in restitution. Lugo had pled guilty to conspiring to defraud the United States and aggravated identity theft on Oct. 10, 2012.
Between July 2008 and May 2009, Lugo engaged in a scheme to obtain monies from the United States through the submission of fraudulent tax returns. Lugo submitted nearly three dozen Federal tax returns to the United States in the names of deceased persons from California. For each of these tax returns, Lugo falsified the deceased individuals' wages, address, income tax withholdings, dependents, tax credits, and other deductions, in order to maximize the tax refund. To conceal his activity from law enforcement, Lugo created a shell company called Uncle Sam’s Tax Service in Buckeye, Ariz. and obtained bank accounts under that business name.
“Because tax fraud undermines the integrity of our income tax system and therefore impacts all of us as taxpayers, our office places a high priority on the investigation and prosecution of this type of crime,” said U.S. Attorney Leonardo.
“A 54 month prison sentence reflects the egregiousness of this crime. Mr. Lugo went to great lengths to perpetrate his scheme which included stealing the identities of deceased taxpayers. IRS Criminal Investigation, both nationwide and here in Arizona, has made investigating identify theft cases our top priority,” stated Gabriel Grchan, Acting Special Agent in Charge, IRS-CI.
In total, Lugo falsely claimed over $279,000 in refund payments and gained access to approximately $128,388 of the refunds.
The investigation in this case was conducted by the United States Internal Revenue Service. The prosecution was handled by Raymond K. Woo and Joseph Koehler, Assistant U.S. Attorneys, District of Arizona, Phoenix.CASE NUMBER: CR-12-0008-PHX-NVW
RELEASE NUMBER: 2013-004_LugoFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Peach Springs Man Sentenced to Federal Prison for Assaulting Police OfficerRead the Press Release
PHOENIX – On Jan. 14, 2012, Duane Kenny Parker, 25, of Peach Springs, Ariz., was sentenced by U.S. District Judge David G. Campbell to 70 months in prison, followed by three years of supervised release. Parker, a member of the Hualapai Nation Indian Tribe, pleaded guilty on October 15, 2012 to assault with a dangerous weapon.
According to court records, Parker assaulted a Hualapai Nation police officer by striking the officer with a glass bottle after he responded to a domestic violence call. After the bottle broke, Parker swung the bottle at the officer a second time striking him in the neck area. As a result of the assault, the victim sustained serious bodily injuries including a concussion.
The investigation in this case was conducted by the Hualapai Nation Police Department. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-12-8068-PCT-DGC
RELEASE NUMBER: 2013-003_ParkerFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Painting Contractor Sentenced in Bidding SchemeRead the Press Release
PITTSBURGH - A resident of Allegheny County has been sentenced in federal court to five months imprisonment and five months home detention with electronic monitoring, to be followed by three years supervised release, on his conviction of theft from a program receiving federal funds, United States Attorney David J. Hickton announced today. He was also ordered to pay restitution to the West Mifflin Area School District in the amount of $94,439.
United States District Judge Cathy Bissoon imposed the sentence on Ralph D. Imbrogno, 65, of McKeesport, Pa.
According to information presented to the court, from May 2008 through March 2010, Imbrogno aided and abetted Patrick Risha, the Superintendent of the West Mifflin Area School District, in defrauding the school district and misapplying a total of $94,439 in district funds. The fraud was committed in connection with the school district's awarding of 10 painting contracts to Imgrogno's son's painting company, Imbrogno Painting. Imbrogno aided Risha in defrauding the school district by producing false bid proposals from painting contractors for the contracts requiring a competitive bidding process.
Imbrogno previously pled guilty to one count of aiding Risha in the fraud with respect to a contract in the amount of $9,995.00, issued to Imbrogno Painting for the painting of a portion of the interior of Emerson Elementary School. Imbrogno Painting was paid for such services by check issued on October 21, 2009, from the West Mifflin Area School District "General Fund" account. The West Mifflin Area School District was the recipient of in excess of $1,000,000 of federal monies from the United States Department of Education during the 12-month period, including Oct. 21, 2009.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the U.S. Department of Education Office of Inspector General Investigation Services for the investigation leading to the successful prosecution of Imbrogno.