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1 March 2013
North Carolina Commodities Firm Owner Sentenced to 36 Months in Prison for Multimillion-dollar FraudRead the Press Release
The principal and co-owner of North Carolina-based Integra Capital Management LLC, was sentenced today to serve 36 months in prison for his role in a scheme to defraud commodities trading investors of more than $3.2 million, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney of the Western District of North Carolina Anne M. Tompkins.
Nicholas Cox, 35, of Lexington, N.C., was sentenced by U.S. District Judge Max O. Cogburn Jr., in the Western District of North Carolina. In addition to his prison term, Cox was sentenced to serve three years of supervised release and ordered to pay $1,981,477 in restitution.
On Dec. 22, 2012, Cox pleaded guilty in the Western District of North Carolina to one count of conspiracy to commit mail fraud, five counts of mail fraud and one count of conspiracy to commit money laundering.
According to court documents, between September 2006 and January 2009, Cox and his co-conspirator, Rodney Whitney, 50, of Archdale, N.C., the co-owner of Integra, engaged in a scheme to defraud investors in commodity trading pools operated by the firm. Integra was established purportedly for the purpose of pooling investors’ funds in commodity pools, and investing in commodity futures and foreign currency exchange trading. According to court documents, Cox and Whitney obtained and misappropriated more than $3.2 million in investor funds and fabricated account statements and tax forms to conceal their fraud.
According to court documents, Cox and Whitney falsely represented, among other things, that Integra’s managers had more than 30 years of combined market experience; that Integra paid dividends of two to five percent of the investor’s initial investment, which was derived from Integra’s trading profits; and investors could remove their principal investments within five days upon giving notice to Integra. According to court documents, Cox and Whitney used the money invested by later investors to pay the monthly investment returns they had promised to earlier investors, to purchase real estate, to fund other business ventures and to purchase automobiles and other personal goods and services.
On March 21, 2011, Whitney pleaded guilty to one count of conspiracy to commit mail and wire fraud and one count of conspiracy to commit money laundering. He was sentenced on Jan. 7, 2013, to 60 months in prison for his role in the scheme.
The case was prosecuted by Trial Attorney Luke Marsh of the Criminal Division=s Fraud Section and Benjamin Bain-Creed and Kenny Smith of the U.S. Attorney’s Office for the Western District of North Carolina. The case was investigated by the U.S. Postal Inspection Service.
This prosecution was done in coordination with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
New York Man Sentenced for Importing Steroids from ChinaRead the Press Release
PITTSBURGH, Pa. - A resident of Buffalo, New York, has been sentenced in federal court to two years probation and ordered to perform 150 hours of community service on his conviction of importation of steroids, United States Attorney David J. Hickton announced today.
Chief United States District Judge Gary L. Lancaster imposed the sentence on Anthony Gianetti, 27.
According to information presented to the court, on May 5, 2008, Gianetti took delivery at a Monroeville Post Office of a parcel from the People's Republic of China, which contained vials and tablets consisting of six different types of anabolic steroids.
Prior to imposing sentence, Judge Lancaster stated that the sentence was a downward variance from the Guidelines range of 8-14 months imprisonment - due to defendant's youth at the time of commission and his subsequent academic achievements.
Assistant United States Attorney Leo M. Dillon prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Pennsylvania State Police, the Postal Inspection Service and DHS Immigration and Customs Enforcement for the investigation leading to the successful prosecution of Gianetti.
New Town Man Sentenced for AssaultRead the Press Release
BISMARCK - U.S. Attorney Timothy Q. Purdon announced that on March 1, 2013, Sean Conklin, 35, of New Town, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of assault resulting in serious bodily injury. Conklin was found guilty of the charge by a federal jury on April 18, 2012.
Judge Hovland sentenced Conklin to three years and nine months in federal prison, to be followed by two years of supervised release. Conklin was ordered to pay a $100 special assessment to the Crime Victim’s Fund.
On April 13, 2010, an employee of a Bismarck excavating company was in the entertainment bar at the Four Bears Casino and Lodge near New Town, N.D. Conklin struck this employee in the face as he was leaving the bar to go to his hotel room. The victim suffered a broken jaw and a cracked tooth.
The case was investigated by the Federal Bureau of Investigation, the Bureau of Indian Affairs - Fort Berthold Agency, the Three Affiliated Tribes Police Department and the Four Bears Casino Security.
Assistant U.S. Attorney Rick Volk prosecuted the case.
Nelson County, Kentucky Drug Store Owner Charged with Health Care Fraud and Wire FraudRead the Press Release
– Crume Drug Store owner alleged to have billed insurance companies and government health care agencies for fraudulent prescriptions
LOUISVILLE, Ky. – The owner of Crume Drug Store, located in Nelson County, Kentucky, was charged in United States District Court this week, in a two count federal information, with wire fraud and billing private insurance companies and Medicare Part D for fraudulent prescriptions, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the federal charges, Timothy Sizemore, age 36 , of Bardstown, Kentucky, knowingly devised and executed a scheme, between April 2010 and February 2012, whereby he used patients’ and doctors’ names to create fraudulent prescriptions, and billed Anthem and other private insurance companies for those fraudulent prescriptions, even though, those prescriptions were never actually filled. Further, it is alleged that during the same time period, Sizemore used patients’ and doctors’ names to create fraudulent prescriptions and billed Medicare Part D for those fraudulent prescriptions which were never filled.
If convicted at trial, Sizemore could be face no more than 30 years in prison, a fine of $500,000 and three years of supervised release. An initial appearance on the charges has not been scheduled.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Federal Bureau of Investigation (FBI) and U.S. Department of Health and Human Services Office of Inspector General.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Marijuana Trafficker Sentenced to Ten Years in PrisonRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO – Carlton E. Jones, 41, of Columbus was sentenced in U.S. District Court to 120 months in prison for conspiring to distribute more than 2,000 pounds of marijuana in central Ohio between 2010 and 2012 and laundering the proceeds through his used car business, Unlimited Auto Group.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), Franklin County Sheriff Zach Scott and Columbus Police Chief Kim Jacobs announced the sentence imposed today by Senior U.S. District Judge James L. Graham.
Jones is one of seven people charged in March 2013 following an investigation by the FBI, IRS, Franklin County Sheriff Zach Scott’s Office and Columbus Police. Jones pleaded guilty on July 22, 2013 to one count of conspiracy to distribute more than 1,000 kilograms of marijuana and one count of conspiracy to commit money laundering.
Other defendants convicted as a result of the investigation include: Jesus Galindo Corrales, 36, Tucson, Arizona, who was sentenced on April 11, 2014 to 72 months in prison.
Quentin Jefferson, 34, of Columbus, Ohio, was sentenced on April 10, 2014 to 60 months in prison on one count of conspiracy to distribute over 100 kilograms of marijuana and one count of money laundering.
Bryan T. Jones, 34, of Columbus, was sentenced on October 25, 2013 to 18 months in prison.
Adrian Raul Islas, 33, of Tucson, Arizona was sentenced on April 11, 2014 to 27 months in prison.
Chad A. Goggans, 41, of Canal Winchester, Ohio was sentenced on April 11, 2014 to 27 months in prison on one count of conspiracy to distribute over 1,000 kilograms of marijuana and one count of conspiracy to commit money laundering.
Jose Eduardo Islas, 41, of Tucson, Arizona, was sentenced May 16, 2014 to 120 months in prison.
Patrick Stinson Edwards, 49, of Columbus pleaded guilty on February 7, 2014 to one count of conspiracy. He was sentenced on June 13, 2014 to 24 months in prison.
Kenyatta Meadows, 50, of Columbus pleaded guilty on February 7, 2014 to one count of conspiracy. He is awaiting sentencing.U.S. Attorney Stewart commended the cooperative long-term investigation by the FBI, IRS agents, Columbus Police officers and Franklin County deputies, as well as Assistant U.S. Attorneys Kevin Kelley and David DeVillers, who represented the United States in this case.
# # #Manhattan U.S. Attorney Announces Agreement with Ernst & Young LLP to Pay $123 Million to Resolve Federal Tax Shelter Fraud InvestigationRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Steven Miller, the Acting Commissioner of the Internal Revenue Service (“IRS), and Tamara Ashford, the Deputy Assistant Attorney General for the Tax Division of the Department of Justice, announced today that Ernst & Young LLP (“E&Y”) has admitted wrongful conduct by certain E&Y partners and employees in connection with the firm’s participation, from 1999 to 2004, in four tax shelters that were used by approximately 200 E&Y clients in an effort to defer, reduce, or eliminate tax liabilities of more than $2 billion.
E&Y entered into a non-prosecution agreement (the “NPA”) with the United States, in which the company agreed to pay $123 million to the United States and acknowledged a detailed Statement of Facts in which it admitted the wrongful conduct of certain partners and employees. E&Y also agreed to certain permanent restrictions and controls on its tax practice, including a prohibition against planning, promoting or recommending any “listed transaction.” A "listed transaction" is a transaction that is the same as, or substantially similar to, one that the IRS has determined to be a tax avoidance transaction. The NPA also requires E&Y’s continued cooperation with the Government’s investigation. In exchange, the United States agreed not to criminally prosecute E&Y for its participation in the tax shelter scheme. The NPA applies only to E&Y and not to any individuals. E&Y has cooperated with the Government’s investigation into these tax shelters since approximately 2003. In the event that the firm violates the NPA, the U.S. Attorney’s Office may prosecute E&Y.
According to the Statement of Facts to which E&Y has admitted, and as proven at the criminal trial of certain former E&Y partners:
Beginning in 1999 and ending in 2002, E&Y, in conjunction with various law firms, banks, and investment advisers, developed, marketed and implemented four tax shelter products called COBRA, CDS, CDS Add-On, and PICO. E&Y implemented these four tax shelter products for approximately 200 high net worth clients in an effort to defer, reduce, or eliminate $2 billion in aggregate tax liabilities. E&Y prepared tax returns reflecting tax losses claimed to have been derived from those tax shelter products and subsequently defended certain of its clients in connection with audits of those transactions by the IRS.
A small group within E&Y known as the Strategic Individual Solutions Group (“SISG”) was primarily responsible for supervising and coordinating the marketing, implementation and defense of E&Y’s tax shelter products. Certain SISG tax shelter products were designed to appear to the IRS to be substantive investments that had favorable tax consequences when, in reality, the products were actually designed and marketed to clients as a series of preplanned steps that would defer, reduce or eliminate their tax liabilities. The typical client participating in these shelters was primarily, if not exclusively, motivated to achieve a desired tax savings.
In order to deceive the IRS as to the true nature of the tax strategies, and to bolster arguments that the transactions had economic substance, some SISG personnel agreed upon and directed other E&Y employees to participate in a concerted effort not to create, disseminate, or publicize documents reflecting the tax motivation behind the strategies, or the preplanned sequence of steps necessary to effect the strategies. These SISG personnel thereby sought to prevent the IRS from detecting their clients’ purposes in employing these strategies. For example, in certain instances, members of SISG falsely portrayed the transactions under examination as purely investment-driven transactions, and falsely denied a tax motivation for the transactions in response to IRS Information Document Requests and in testimony to the IRS.
Further, in implementing the sale of tax shelter products, certain members of SISG also prepared documents or correspondence that falsely and inaccurately reflected events or conversations, and that were designed to improperly influence the IRS’s view of the merits of the transactions in the event of an audit. These activities continued into 2003 and 2004.
Mr. Bharara thanked the IRS for their outstanding work in the investigation of this matter. He also thanked the Department of Justice’s Tax Division for its assistance.
This investigation is being overseen by the Office’s Complex Frauds Unit. Assistant U.S. Attorney Richard C. Tarlowe, and Senior Litigation Counsel John E. Sullivan of the Tax Division, are in charge of the prosecution.
EY NPA
Man Sentenced for Attempted Bribery of Immigration OfficialRead the Press Release
TALLAHASSEE, FL – Jean Therve, 29, of Haiti, was sentenced yesterday to thirty-three months in federal prison for attempting to bribe an Immigration and Customs Enforcement (ICE) Deportation Officer to release him from federal detention where he was being held pending deportation to Haiti.
Therve was indicted last year on one count of bribery. At his trial last December, the government presented evidence that between November 29 and December 6, 2011, Therve offered a deportation officer, who was acting in an undercover capacity, $3,000 to release him. After a series of conversations, Therve arranged for a third party to wire $1,400.00 to the officer as an initial payment for his release.
Therve is subject to a deportation order that will be executed on the completion of his prison sentence
In announcing the sentence, Pamela C. Marsh, United States Attorney for the Northern District of Florida, commended the work of the ICE Office of Professional Responsibility, which conducted the undercover investigation that led to Therve’s arrest and conviction.
Ms. Marsh added, “In this case, an attempt to pay a bribe to a deportation officer to release an individual from custody was thwarted by the quick action of ICE officers. Attempts to corrupt and provide things of value to public officials will be immediately investigated and prosecuted vigorously. Prosecution of public corruption, including attempts to bribe law enforcement and correctional officers, is a priority of this office and the Department of Justice.”
The case was prosecuted by Assistant U.S. Attorney Herbert Lindsey.
Man Convicted of Mortgage Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – Following a nine-day jury trial, Lance Kellow, 36, of, Henderson, Nev., was convicted today of one count of conspiracy to commit mail and wire fraud, three counts of wire fraud and one count of bank fraud for committing mortgage fraud crimes that caused losses to federally insured financial institutions of over $1 million, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
According to the indictment and evidence presented to the jury during the trial, Kellow, an experienced loan officer in the mortgage lending industry in southern Nevada, used his experience and knowledge to commit mortgage fraud and profit. On four different occasions, Kellow and his brothers lied to mortgage lenders in order to get real estate and money for their own use. Beginning in January and April 2007, Kellow and his brothers, Jason and Vince Kellow, conspired to sell their houses to their cousin, who was not qualified to buy them, for a significant profit. Kellow and his brothers completed and sent lenders loan applications which contained false statements about their cousin’s employment, income, intent to occupy the property, assets, and financial liabilities. To help their cousin qualify for loans, the brothers deposited cash in his account, paid down his debt, and arranged for false verifications of employment and income, all without informing the lenders. They also omitted other property purchases and mortgage loans from their cousin’s loan applications. As a result of the false statements in the loan applications, lenders made loans to their cousin they otherwise would not have made enabling him to buy the properties. The Kellow brothers received over $500,000 in cash from these sales. Lance Kellow personally received over $100,000. Because their cousin was not financially qualified to buy the properties, he was unable to pay the mortgages and they went into foreclosure. The total loss to the banks on the homes exceeds $1 million.
Kellow is free on a personal recognizance bond and is scheduled to be sentenced by U.S. District Judge Gloria M. Navarro on May 31, 2013. He faces up to 30 years in prison and fines of up to $1 million on each count.
Vinson Kellow pleaded guilty to wire fraud in January 2012. Jason Kellow pleaded guilty to conspiracy to commit bank fraud in August 2010. Sentencing dates for both will be scheduled in the near future.
The case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorneys Kathryn C. Newman and Christina Brown.
This case was handled in connection with the President's Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
MS-13 Gang Member Sentenced to 120 Months for Child Sex TraffickingRead the Press Release
ALEXANDRIA, Va. – Jonathan Adonay Fuentes, aka “Cheesy,” and “Crazy Boy,” 21, of Clinton, Md., was sentenced to 120 months in prison, followed by five years of supervised release, for sex trafficking a juvenile female as part of a prostitution enterprise operated by the violent street gang Mara Salvatrucha Thirteen (MS-13).
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by United States District Judge Leonie M. Brinkema.
Fuentes, an El Salvadoran-born U.S. citizen, pleaded guilty to sex trafficking a child on Nov. 27, 2012.
“As the driver for MS-13, Fuentes transported a young girl to various hotels and apartments – helping the gang exploit her as a child prostitute,” said U.S. Attorney MacBride. “We have a zero-tolerance policy against anyone who makes it possible to profit from the sexual slavery of children.”
“Today’s sentence demonstrates that those who force young girls into prostitution, as well as those who allow it, will pay the price for their actions,” said Assistant Director in Charge Parlave. “Along with our law enforcement partners, the FBI will continue to ensure that anyone who commits any form of child exploitation will be pursued and punished to the fullest extent of the law.”
According to court documents, Fuentes assisted his fellow MS-13 gang members from the fall of 2009 through the spring of 2010 run a prostitution ring that specialized in selling juvenile girls for commercial sex. Fuentes admitted in court that he transported a teen girl within Virginia and Maryland to engage in sex with clients. The large majority of appointments took place at an MS-13-controlled apartment in Maryland; however, Fuentes also prostituted the young girl at various hotels throughout Virginia, Maryland and Washington, D.C. Gang members supplied the victim with drugs and alcohol to keep her compliant.
This case was investigated by the FBI’s Washington Field Office, with assistance from the Fairfax County Police Department and HSI, all of whom participate in the Northern Virginia Human Trafficking Task Force. Assistant United States Attorneys Zachary Terwilliger and Patricia T. Giles are prosecuting the case on behalf of the United States.Founded in 2004, the Northern Virginia Human Trafficking Task Force is a collaboration of federal, state, and local law enforcement agencies – along with nongovernmental organizations – dedicated to combating human trafficking and related crimes.
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.Long Beach Man Arrested in Federal Sex Trafficking CaseRead the Press Release
Santa Ana, California – A Long Beach man was arrested yesterday and is scheduled to be arraigned this afternoon on federal sex trafficking charges that allege he worked with a previously charged defendant to coerce women to work as prostitutes.
Marquis Monte Horn, also known as “Taylor,” 34, was named in an eight-count superseding indictment returned by a federal grand jury on Wednesday. The indictment charges Horn with one count of conspiracy to engage in sex trafficking, and one count of sex trafficking by force, fraud or coercion.
The second man charged in the case – Roshaun Nakia Porter, 37, also of Long Beach – was arrested and indicted on sex trafficking charges in April 2012 (see: http://www.fbi.gov/losangeles/press-releases/2012/man-indicted-for-forced-labor-and-sex-trafficking-of-women-forced-to-work-as-prostitutes-in-orange-county). Porter is named in all eight counts in the superseding indictment.
According to the superseding indictment, Horn used websites such as www.modelmayhem.com to recruit victims to work in a prostitution organization by claiming he and Porter were running an upscale escort service in which women could make $500 per day. Horn, Porter and others used various coercive tactics to induce the victims into engaging in prostitution. For example, they allegedly developed a romantic relationship with some victims, falsely promised victims they would only be working as an escort, falsely promised financial assistance for the victims and their families, falsely promised help to obtain lawful immigration status in the United States, and isolated some victims from their friends and family.
The indictment further alleges that Horn recruited one victim into the prostitution organization who was subsequently beaten, whipped, and forced to engage in prostitution by Porter.
Investigators believe that there are additional, as-yet unidentified victims in this case. Anyone with information about this case is encouraged to contact the FBI’s Los Angeles Field Office at (310) 477-6565.
Horn is scheduled to be arraigned on the indictment this afternoon at 2:00 in United States District Court in Santa Ana.
If convicted of the charges in the indictment, Horn would face a statutory maximum penalty of life in federal prison.
Porter has previously pleaded not guilty in this case and was ordered detained (held without bond). A trial for Porter was previously scheduled for May 7 before United States District Judge Josephine Staton Tucker.
This week’s superseding indictment in the result of an ongoing investigation being conducted by the Federal Bureau of Investigation.
The case is being prosecuted by the United States Attorney's Office and the Department of Justice’s Human Trafficking Prosecution Unit.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
Release No. 13-029
Leavenworth Woman Sentenced for Collecting Disability Benefits While WorkingRead the Press Release
KANSAS CITY, KAN. – A woman from Leavenworth, Kan., has been sentenced to a year and a day in prison for fraudulently collecting disability benefits while working in federal and state jobs, U.S. Attorney Barry Grissom said today. She also was ordered to pay $76,875 in restitution.
Tya Dejuan Tiller, 38, Leavenworth, Kan., pleaded guilty to one count of Social Security fraud and one count of theft of public funds.
In her plea, Tiller admitted that beginning in September 2003 she applied for and received Social Security Disability Insurance Benefits claiming a disabling condition. She continued to receive benefits while working in 2005, 2006 and 2007 for the Veterans Administration as a contract representative for VA beneficiaries, and in 2007, 2008 and 2009 as a human services specialist for the Kansas Department of Social and Rehabilitation Services. She did not report to the Social Security Administration that she was working, which she was required to do under the rules of the program.
Tiller also admitted that while working as a caseworker for the Kansas Dept. of Social and Rehabilitation Services, she put false information in the records of at least four individuals who were no longer eligible for food stamp benefits in order to convert to her own use $11,234.
Grissom commended the Social Security Administration’s Office of Inspector General, the U.S. Department of Agriculture’s Office of Inspector General, the Kansas Dept. of Social and Rehabilitation Services’s Legal Division, Assistant U.S. Attorney Tris Hunt and Special Assistant U.S. Attorney Trey Alford for their work on the case.
Laurel Bank Robber Pleads Guilty to Four Robberies in over Three MonthsRead the Press Release
Attempted to Rob Two More BanksBaltimore, Maryland – Jeffrey Wayne Malcolm, age 56, of Laurel, Maryland, pleaded guilty today to bank robbery.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Richard McLaughlin of the Laurel Police Department; Howard County Police Chief William McMahon; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Frederick County Sheriff Charles A. “Chuck” Jenkins.
According to his plea agreement, Malcolm robbed the following four banks: PNC Bank at 7451 VanDusen Road in Laurel of $1,327 on October 28, 2011; PNC Bank at 1621 West Liberty Road in Sykesville of $3,597 on January 17, 2012; and the Suntrust Bank at 11323 Fingerboard Road in Monrovia of $1,776 on January 25, 2012, and $4,388 on February 4, 2012.
Malcolm also attempted to rob the PNC Bank at 15290 Frederick Road in Woodbine on November 7, 2011, but the teller refused to hand over money. Two days later he attempted to rob the PNC Bank at its VanDusen branch, but when a teller saw him approach the bank wearing a ski mask, bank employees locked the front door, preventing him from entering.
Malcolm faces a maximum sentence of 20 years in prison and a $250,000 fine. U.S. District Judge James K. Bredar scheduled his sentencing for July 1, 2013 at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the FBI, Laurel Police Department, Howard County Police department, Maryland Police Department, Frederick County Bureau of Investigations and Frederick County State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney P. Michael Cunningham, who prosecuted the case.
Lantry Man Indicted for Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that a rural Lantry, South Dakota man has been indicted by a federal grand jury for Involuntary Manslaughter.
Charg Hebb, age 19, was indicted by a federal grand jury on February 13, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 25, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is not more than 8 years in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 special assessment. Restitution may also be ordered.
The charge relates to an October 12, 2012 car crash on County Road 50 in Ziebach County that resulted in the death of a young man in Hebb’s vehicle. The charge is merely an accusation and Hebb is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Hebb was released on bond pending trial. A trial date has not been set.
La Plant Man Pleads Guilty to AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that Norman Little Shield, Jr., age 21, of La Plant, South Dakota appeared before U.S. District Judge Roberto A. Lange on February 25, 2013 and pled guilty to an Indictment that charged him with Assault Resulting in Serious Bodily Injury. The maximum penalty upon conviction is 10 years of custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 special assessment.
The conviction arose from an incident that occurred in July 2012 when Little Shield assaulted an adult male in Cherry Creek, South Dakota.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. The case is being prosecuted by Assistant U.S. Attorney Mikal Hanson.
A presentence investigation was ordered, and a sentencing date was set for May 13, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Kimball Man Charged with Alteration of Records, False Statements and Lacey Act ViolationRead the Press Release
United States Attorney Brendan V. Johnson announced that a Kimball, South Dakota man has been indicted by a federal grand jury. James Steckley, d/b/a Steckley’s Wild Dakota Outfitters, age 44, was indicted by a federal grand jury on February 13, 2013 for Alteration and Falsification of Records, Making False Statements and Lacey Act Violation.
Steckley appeared before U.S. Magistrate Judge Mark A. Moreno on February 25, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 20 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release and an additional 2 years of supervised release upon revocation, and a $100 special assessment to the Victim Assistance Fund. Restitution may also be ordered. The charges are merely accusations, and Steckley is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Fish and Wildlife Service and Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case. Steckley was released on bond pending trial which has not been set.
Jury Finds Zander Guilty of Fraud, Money Laundering, Tax Charges in Case Involving Scheme to Defraud Paiute TribeRead the Press Release
SALT LAKE CITY – A jury convicted Jeffrey Charles Zander, age 57, a former tribal planner, general counsel and economic development and trust resources director for the Paiute Indian Tribe of Utah, of mail and wire fraud, money laundering, and willful failure to file tax returns Tuesday afternoon following a week-long trial in U.S. District Court in Salt Lake City.
Zander was charged with two counts of mail fraud, two counts of wire fraud, one count of money laundering, and three counts of willful failure to file a tax return in a superseding indictment returned in February 2012.
“Prosecuting white collar crime cases is a high priority for our office. This case is particularly egregious because it involves a person in a position of trust with the Paiute Tribe, who diverted funds intended to help the Tribe for his own personal use,” U.S. Attorney David B. Barlow said today.
Zander began working for the Paiute Tribe around October 1998 as its tribal planner. About two years later, he became the Tribe’s economic development director and trust resources director. Around September 2007, Zander convinced the Tribe to hire as general counsel when, in truth, he did not possess a license to practice law.
Evidence presented at trial showed that beginning in 2005, Zander developed a scheme to divert more than $175,000 for his personal use that had been awarded to the Paiute Tribe through grant proposals the defendant had authored and assisted the tribe in applying for. The grants were awarded for Integrated Resource Management Plans (IRMP), which are long-term plans to balance the use of tribal resources between interests of residents of the reservation and revenue-generating uses of tribal lands. Zander told tribal leaders that he had hired companies in Salt Lake City, Las Vegas, and Provo to act as consultants or facilitators to assist with the creation of the IRMPs. Zander told the tribe that since he would be traveling to work with the consultants or facilitators, he could hand-deliver progress payment checks to the companies.
Evidence at trial showed the companies were bogus – created by the defendant to facilitate the fraud. Zander created fictitious invoices from the companies, submit them for payment from the Tribe, and then drove to different points between Provo, Utah, and Mesquite, Nevada to deposit the checks into his personal bank accounts. He also drafted quarterly reports for the Bureau of Indian Affairs to show that the money was being spent for facilitators and consultants when, in truth, he had converted grant funds for his own use.
The scheme came to light when a transaction raised a red flag with a bank teller and, at about the same time, tribal leaders started to uncover the defendant’s deceit and misrepresentations. Evidence showed that invoices from all four companies were found on his work computer. Zander was fired from his tribal position and the case was turned over to the FBI.
“This defendant devised a scheme that caused the Paiute Nation to suffer substantial financial losses over a period of many years. I appreciate the IRS Criminal Investigation Division, the FBI special agents, and the United States Attorney’s Office for their dedicated work on this case. I believe this investigation highlights law enforcement’s ongoing commitment to investigating and prosecuting criminal activity on Native American lands in Utah,” Mary F. Rook, Special Agent in Charge of the FBI in Salt Lake City said today.
“This serves as a strong message to those in positions of trust who put greed over duty.
All income is reportable including amounts you unlawfully obtain from others. Don't think using bogus entities and shell companies is going to conceal your activities from an agency with over 93 years of refining the art of following the money. Such acts will only serve to incriminate you more,” Paul Camacho, Special Agent in Charge of IRS Criminal Investigation, said.As a part of the criminal case, federal prosecutors are seeking a money judgment of $176,698 representing the approximate value of the proceeds obtained by Zander as a part of the scheme.
Sentencing in the case is set for July 31, 2013, at 2 p.m. before U.S. District Judge David Nuffer. The potential maximum penalty each count of mail and wire fraud is 20 years. The money laundering count has a potential 10 years penalty and each count of failure to file a tax return has a potential one-year penalty.
The case was prosecuted by the U.S. Attorney’s Office in Salt Lake City and investigated by special agents of the FBI and the IRS Criminal Investigation Division.
Jury Finds New Haven Man Guilty of Participating in Crack Cocaine Trafficking RingRead the Press Release
March 1, 2013David B. Fein, United States Attorney for the District of Connecticut, today announced that a federal jury in New Haven has found MANOKUS FIELDS, also known as “Fresh,” 30, of New Haven, guilty of conspiracy to distribute 280 grams or more of cocaine base (“crack cocaine”). The jury returned the verdict today following a three-day trial before Senior United States District Judge Ellen Bree Burns.
According to statements made in court and the evidence disclosed during the trial, this matter stems from a joint law enforcement investigation conducted in 2010 by the FBI New Haven Safe Streets Task Force, the DEA New Haven Task Force, the New Haven Police Department and the Hamden Police Department. Through the use of court-authorized wiretaps, investigating officers identified and dismantled a large drug trafficking organization that was headed by Joseph Jackson, also known as “Mighty” and “M.I.,” and centered in the Newhallville section of New Haven and Hamden.
From June 2010 through October 2010, FIELDS was intercepted over the wiretap regularly arranging to meet Jackson and others at locations in Newhallville and New Haven’s Fair Haven neighborhood to purchase “8-balls” (3.5 grams) of crack cocaine. FIELDS then divided the crack into 27 individual packages containing approximately one-tenth of a gram, which he sold to customers for $10 each.
At trial, FIELDS maintained that he bought crack cocaine from the members of the conspiracy, but was not a conspirator himself. The jury rejected this defense, and convicted FIELDS on the only count with which he was charged.
At sentencing, FIELDS faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
Forty-seven individuals have been charged in federal court with various narcotics offenses as a result of this investigation. Forty-six of those individuals have been convicted. The trial of the last remaining defendant is scheduled for April 2013.
This matter was investigated by the FBI New Haven Safe Streets Task Force (composed of members of the New Haven, Milford and Hamden Police Departments and the Connecticut Department of Correction), the Drug Enforcement Administration's New Haven Task Force (composed of members of the New Haven, West Haven, Meriden, Ansonia, Hamden and Branford Police Departments), along with substantial participation by members of the New Haven and Hamden Police Departments. The United States Marshals Service also has assisted the investigation.
The investigation was funded in significant part by the United States Attorney's Office Organized Crime Drug Enforcement Task Force and supported by the Office's Project Safe Neighborhoods and Anti-Gang programs.
This matter is being prosecuted by Assistant United States Attorneys Robert M. Spector and Christopher M. Mattei.
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(203) 821-3722 [email protected]Judge Sentences Career Offender to 50 Years in PrisonRead the Press Release
PITTSBURGH, Pa. - A resident of Homestead, Pa., has been sentenced in federal court to 50 years in prison on his conviction of violating various federal laws, United States Attorney David J. Hickton announced today.
Chief United States District Judge Gary L. Lancaster imposed the sentence on Jay Mathis, 46.
According to information presented to the court, Mathis was convicted at two separate trials on one count of attempted bank robbery, one count of attempted armed bank robbery, two counts of possession of a firearm and ammunition by a convicted felon, two counts of using, carrying and discharging a firearm in relation to a crime of violence, and one count of Hobbs Act Robbery.
Mathis was suspected of carrying out a six-month crime spree that began with the robbery on Jan. 8, 2009, of the National City Bank on Walnut Street in the Shadyside area of Pittsburgh, and ended with the robbery of the Courtyard Marriot at the Waterfront in Homestead which occurred on June 19, 2009.
During the robbery of the National City Bank, Mathis walked towards an off-duty police officer working as a security guard within the bank and pulled out a black and silver gun. As the officer drew his weapon, Mathis retreated out of the bank and headed towards Myrtle Way. The officer chased Mathis, telling him to stop. Mathis fired three shots in the officer’s direction, and the officer returned fire twice. The officer then attempted to take cover as Mathis, still running, fired several more rounds. Mathis got into a small silver vehicle and drove off.
During the robbery of the Courtyard Marriot, Mathis pointed a small black revolver at the desk clerk and demanded money. The clerk placed the cash drawer on the counter and Mathis took approximately $221.00. After leaving the hotel, Mathis led police officers on a high speed chase and fired two rounds of ammunition at the police vehicle behind him, the first one hitting the police car’s windshield and causing the officer to duck down and swerve off the road onto an embankment.
Throughout the duration of the six-month crime spree, Mathis was suspected of committing seven other robberies at various banks, a Subway restaurant, and a McDonald's restaurant.
Jackson Attorneys Re-sentenced in Largest Commercial Mortgage Fraud Scheme in Mississippi HistoryRead the Press Release
JJackson, Miss – At a re-sentencing hearing today before U.S. District Judge Daniel P. Jordan III, the sentence of Charles H. Evans, Jr., 57, of Jackson, Mississippi, was affirmed, whereby Charles Evans will be required to serve 20 years in prison for his role in one of the largest commercial mortgage fraud crimes in the history of the State of Mississippi. The 14 year prison sentence of his brother and co-conspirator, Jon Christopher Evans, 53, also of Jackson, was also affirmed today. A final order of forfeiture was orally entered by U.S. District Court Judge Daniel P. Jordan, III, against the defendants in the amount of $18,594,221.58. In December, 2012, the defendants were ordered to pay $13,423,571.95 in restitution to numerous victim banks and a title insurance company for their fraudulent scheme.
Defendant Charles H. Evans, Jr. is an attorney who operated The Evans Firm in Jackson, Mississippi, and was an approved attorney for Mississippi Valley Title Company (“MVT”), authorized to provide title opinions and prepare certificates of title for MVT, which MVT used and relied upon in order to issue title insurance policies to banks making loans for the purchase of real estate. His brother and co-defendant, Jon Christopher Evans, is also an attorney in Jackson who served as the registered agent for numerous shell companies in the Jackson area, which were owned, operated, and controlled by the Evans brothers and used to carry out their mortgage fraud scheme.
In 2003, the Evans devised a plan to fraudulently secure mortgage proceeds from banks by misrepresenting to such banks the legal descriptions, title and lien history, and ownership of real estate they were intending to purchase. They began by contracting to purchase multi-acre tracts of land. However, before actually purchasing a particular multi-acre tract, they would covertly and fictitiously subdivide the multi-acre tract on paper, falsify the legal descriptions and title 2 history of the property, and sometimes manufacture false warranty deeds, in order to secure mortgages on the individual, fraudulently-subdivided plots of land from multiple banks using various shell companies owned and controlled by the Evans brothers. Based upon these false documents and misrepresentations, the Evans brothers were able to borrow a larger amount of money for the purchase of the fictitiously subdivided land than they would have received if the entire tract had been financed legally through a single loan from one bank. The Evans used the excess mortgage proceeds they received from this fraudulent scheme to pay the respective mortgages on the property financed, enrich themselves, and continue their scheme of fraudulently securing mortgage proceeds on covertly and fictitiously-subdivided land using phony legal descriptions and sometimes false warranty deeds. This fraud blossomed into one of the largest commercial mortgage fraud Ponzi schemes to be carried out in the State of Mississippi.
The Evans continued to acquire property for a number of years by using different banks and appraisal companies, as well as various shell companies which they owned and controlled, and by falsifying the financial statements of Chris Evans in order to continue to secure such fraudulent financing. The scheme covered property from Madison County, Mississippi, to Southaven, Mississippi, to the State of Texas.
After the Evans could no longer locate suitable property upon which they could execute this scheme, they began “double pledging” their existing property, that is, they began fraudulently securing new, additional mortgages on their already-encumbered property by selling such property to other shell companies that they also owned and controlled and manipulating the certificates of title and lien history (and, in some instances, legal descriptions) of such property in order to misrepresent and conceal encumbrances upon such land to the lending financial institutions and to title insurance companies. As a result, each lending financial institution materially relied upon such misrepresentations, believing it had received a priority security interest in the subject property as collateral for the respective loan, when in fact it had not. Charles Evans would perform the fraudulent title work for these real property transactions, including the creation of false certificates of title upon which the title insurance commitments would be issued and upon which banks would write mortgages and disburse mortgage proceeds to shell companies owned and controlled by the Evans brothers, and Charles Evans would perform the closings on most, if not all, of the real estate transactions. Contrary to the representations made by Charles Evans in certificates of title, record title to the subject property was almost never transferred into the subsequent entity owned and controlled by the Evans brothers that actually borrowed the funds and in whose name title was insured. Rather, record title almost always remained in the name of the seller corporation owned and controlled by the Evans. Thus, banks that issued such loans were stuck with outstanding balances owed and no collateral, based upon the Evans’ fraudulent misrepresentations as to the title and lien history of such property.
The Evans continued their fraudulent scheme for over 6 years until the scheme was discovered in September, 2009. Their scheme encompassed over $80 million worth of loans, involved almost 30 shell or fictitious corporations created by the defendants to launder the fraudulently-obtained mortgage proceeds in order to perpetuate and conceal their crimes, and adversely affected almost 50 financial institutions and local governments.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Mike Hurst.###
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Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on March 1, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, the following individual was arraigned:
JOHN RYAN HUGS, a 32-year-old resident of St. Xavier, appeared on a charge of assault resulting in serious bodily injury. He is currently released on special conditions. If convicted of this charge, HUGS faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Marcia Hurd is the prosecutor for the United States. The investigation was conducted by a cooperative effort between the Federal Bureau of Investigation and the Bureau of Indian Affairs.
The defendant pled not guilty to the charge.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Four Shreveport Men Indicted for String of Armed Robberies at Businesses in Louisiana and TexasRead the Press Release
SHREVEPORT, La: United States Attorney Stephanie A. Finley announced today that a grand jury indicted four Shreveport men Thursday as part of a 27-count indictment related to a string of robberies last year that took place in Shreveport, Bossier City, Sabine Parish, and Texas.
Myles W. Robinson, 20, is charged with one count of conspiracy to commit robbery, 13 counts of robbery, and 13 counts of using firearms during a crime of violence.
Halston M. Smith, 22, is charged with one count of conspiracy, seven counts of robbery, and seven counts of using firearms during a crime of violence.
James D. Tyson, 22, is charged with one count of conspiracy, one count of robbery, and one count of using firearms during a crime of violence.
Tremario D. Washington, 23, is charged with one count of conspiracy, one count of robbery, and one count of using firearms during a crime of violence.
According to the indictment, the armed robberies took place between June 1, 2012 and Nov. 14, 2012 at 15 businesses with the men stealing more than $17,900. Robinson took part in all the robberies, but perpetrated five of the robberies alone. In some cases a shotgun was used, in other cases a handgun, and sometimes both were used to rob the businesses. The defendants robbed businesses in Shreveport, La., Bossier City, La., Stonewall, La., Oil City, La., and Atlanta, Tx.
Each defendant faces up to 20 years in prison, a fine of $250,000 or both with five years of supervised release for the conspiracy count; and 20 years in prison, a fine of $250,000 or both with five years of supervised release for each robbery count. For using firearms during a crime of violence, the first count requires seven years in prison, a fine of $250,000 or both with five years of supervised release. After that, each firearms count requires 25 years in prison, a fine of $250,000 or both with five years of supervised release. A trial date will be set at a later date.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The ATF, Shreveport Police Department, Bossier City Police Department, Atlanta Texas Police Department, Caddo Parish Sheriff’s Office, Caddo Parish District Attorney’s Office, DeSoto Parish Sheriff’s Office, DeSoto Parish District Attorney’s Office, and the Bossier Parish District Attorney’s Office took part in the investigation. Assistant U.S. Attorney James Cowles is prosecuting the case.
Forth Worth Man Sentenced to 10 Years in Federal Prison on Bank Robbery ConvictionsRead the Press Release
FORT WORTH, Texas — Montray Lorenzo Cato, 29, of Fort Worth, Texas, was sentenced today by U.S. District Judge John McBryde to 120 months in federal prison, following his conviction at trial, in November 2012, on two counts of bank robbery, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Judge McBryde also ordered that Cato pay $7,747 in restitution.
During summer 2012, Cato robbed two branches of the First Convenience Bank in Fort Worth. Cato committed the June 13, 2012, robbery of the First Convenience Bank, located inside of a Kroger Store at 6650 North Beach Street and the July 28, 2012, robbery of the First Convenience Bank, located inside of a Walmart at 6756 West Vickery. On both occasions the bank robber wore similar clothing and held a cell phone to his ear during the robbery.
Cato was arrested on August 29, 2012, after employees at a First Convenience Bank, located inside of a Kroger Store at 9114 Camp Bowie Boulevard West, recognized Cato loitering in the store and notified the Fort Worth Police Department. After officers located Cato in the store, they escorted him outside and discovered that he had a realistic plastic replica of a firearm in his waistband. In addition, he had no money, credit cards or debit cards on his person that seemed to belie his claim that he was shopping at the Kroger.
The case was investigated by the Fort Worth Police Department and the FBI. Assistant U.S. Attorneys Matthew Gulde and Megan Fahey prosecuted.
Fort Pierre Man Charged with Failure to AppearRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Pierre, South Dakota man has been indicted by a federal grand jury.
Brent Flood, age 23, was indicted by a federal grand jury on February 13, 2013 for Failure to Appear. Flood appeared before U.S. Magistrate Judge Mark A. Moreno on February 25, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 5 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment may also be ordered. The charge is merely an accusation, and Flood is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service and Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case. Flood was remanded to the custody of the U.S. Marshal. A trial date has not been set.
Former Usd Basketball Player Brandon Johnson Sentenced for Conspiring to Commit Sports BriberyRead the Press Release
United States Attorney Laura E. Duffy announced that Brandon Johnson was sentenced today in federal court in San Diego by the Honorable Anthony J. Battaglia to serve six months in custody, followed by one year of supervised release, for his role in a conspiracy to commit sports bribery in connection with influencing the outcome of University of San Diego (USD) basketball games during the 2009-2010 season and soliciting a USD player to do the same during the 2010-2011 season. Johnson pled guilty to an indictment charging him with conspiring to commit sports bribery on November 15, 2012. To date, eight of the ten defendants indicted have pled guilty.
According to court documents and admissions from co-defendants’ guilty pleas, Brandon Johnson, the all-time points and assists leader at USD, received bribe money to influence the outcome of basketball 2 games during the 2009-2010 season while he was a member of USD’s basketball team. Utilizing Johnson, the conspiracy profited by placing bets at Las Vegas casinos on games Johnson influenced. Co-defendant Steve Goria, who was sentenced to 30 months imprisonment in October 2012, admitted that the conspiracy profited more than $120,000 from the game-fixing scheme. Johnson admitted in his guilty plea that during the 2010-2011 season, he solicited a then-current USD basketball player to influence the outcome of basketball games for bribe money.
Judge Battaglia ordered the defendant to report on May 31, 2013 to begin serving his sentence.
DEFENDANT Criminal Case No. 11CR1345-AJB Brandon Johnson SUMMARY OF CHARGESCount 1: Title 18, United States Code, Section 371 - Conspiracy
INVESTIGATING AGENCYFederal Bureau of Investigation
Former Los Angeles Police Department 911 Operator Sentenced to Six Years in Federal Prison for Receiving Child PornographyRead the Press Release
LOS ANGELES – A Lancaster man who worked for the Los Angeles Police Department as a 911 operator has been sentenced to 72 months in federal prison for receiving child pornography.
Brandon Simpson, 28, was sentenced yesterday afternoon by United States District John A. Kronstadt, who said the child pornography found in this case – which included images of infants being sexually assaulted – were beyond “repugnant.”
Simpson was arrested during an investigation into a peer-to-peer network in September 2011, and he pleaded guilty in June 2012 to one count of receiving child pornography. Following a search of Simpson’s residence in 2011 – he resided in Long Beach at the time – investigators reviewed computer files and found hundreds of images of child pornography. In his plea agreement, Simpson admitted that his collection contained more than 600 images. Some of the image involving bondage of very small children, according to a sentencing memorandum filed by prosecutors. “The charges against [Simpson] are serious and involve the exploitation of the most vulnerable people in the community, children,” the memo states.
Simpson was terminated from the Los Angeles Police Department in 2012.
The investigation into Simpson was conducted by the Internet Crimes Against Children Task Force (ICAC), which is made up of agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Los Angeles Police Department.
Release No. 13-028
Former Jenkens & Gilchrist Attorney Sentenced in Manhattan Federal Court to Eight Years in Prison for Promoting Illegal Tax Shelters That Generated Billions of Dollars in Fraudulent Tax LossesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that DONNA GUERIN, an attorney, was sentenced today to eight years in prison on conspiracy and tax evasion charges stemming from her work on the design, marketing, and implementation of fraudulent tax shelters that allowed her clients to claim billions of dollars in fraudulent tax losses. GUERIN pled guilty in September 2012 and was sentenced by U.S. District Judge William H. Pauley III.
Manhattan U.S. Attorney Preet Bharara said: “Donna Guerin abused her position as an attorney to help clients flout the law she swore to uphold, which contributed to the loss of billions of dollars in tax revenue. With her sentence today, she joins the other professionals who built and perpetrated this fraud, but did not find shelter from justice.”
According to the Indictment previously filed in Manhattan federal court and statements made during GUERIN’s guilty plea and sentencing proceedings:
GUERIN was a partner at Altheimer & Gray (“A&G”), a Chicago law firm, between 1994 and 1998, and later moved with a small group of A&G attorneys to the newly-formed Chicago office of Jenkens & Gilchrist (“J&G”), a Texas-based law firm with offices throughout the United States. At different times between 1999 and 2005, GUERIN was a shareholder or partner at J&G.
Between 1996 and 2004, GUERIN and other attorneys at J&G worked on the design, marketing and implementation of high-fee tax strategies for individual clients. Those strategies, or “tax shelters,” were designed to allow high-net-worth clients to eliminate, reduce, or defer taxes on significant income or gains. GUERIN and other J&G attorneys worked together with brokers from a financial institution, partners and employees of the accounting firm BDO Seidman, and other entities, in marketing and implementing the tax shelters.
Among the fraudulent tax shelters designed, marketed, and implemented by GUERIN and her co-conspirators were “Short Sales,” “Short Options Strategy” (“SOS”), “Swaps,” and “HOMER.” The Short Sale tax shelter was marketed and sold from 1994 through 1999 to at least 290 wealthy individuals, and generated at least $2.6 billion in false and fraudulent tax losses. The SOS tax shelter was marketed and sold from 1998 through 2000 to at least 550 wealthy individuals, and generated at least $3.9 billion in false and fraudulent tax losses. The Swaps tax shelter was marketed and sold in 2001 and 2002 to at least 55 wealthy individuals, and generated more than $420 million in false and fraudulent tax losses.
In return for receiving a fee from tax shelter clients based on a percentage of their purported tax losses – usually 5% for ordinary losses and 4% for capital losses – GUERIN and others at J&G assisted clients in implementing all of the stages of the fraudulent tax shelters, including setting up bank accounts and entities such as corporations and partnerships. GUERIN and others at J&G also provided the tax shelter clients a “more likely than not” legal opinion from J&G.
In addition to her involvement in the marketing and implementation of the fraudulent tax shelters, GUERIN also took part in the illegal back-dating of certain tax shelter transactions when attorneys at Jenkens & Gilchrist realized, after the close of certain tax years, that certain steps of the tax shelter transaction had been done improperly. GUERIN and others helped create documents after the close of the tax year and back-dated them using “as of” dates --- effectively treating the documents as if they had been signed prior to the close of the tax year, in violation of tax accounting rules.
GUERIN was paid in excess of $17 million from 1998 to 2002 as a result of her involvement in the tax shelter conspiracy.
In addition to her prison term, GUERIN, 52, of Scottsdale, Arizona, was sentenced to three years of supervised release and ordered to pay restitution in the amount of $190 million.
GUERIN and co-defendants Paul Daugerdas, Denis Field, and David Parse were convicted of various tax fraud charges in May 2011 after an 11-week jury trial trial. GUERIN, Daugerdas, and Field were granted a new trial as a result of certain juror misconduct. David Parse is scheduled to be sentenced on March 22, 2013. The retrial of Daugerdas and Field is scheduled to begin on September 9, 2013. The charges against these two defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Former J&G partner Erwin Mayer pled guilty to related charges of conspiracy and personal tax evasion in October 2010. Former BDO Seidman Vice Chairman and board member Charles W. Bee, Jr., pled guilty in June 2009 to related charges of conspiracy to defraud the Internal Revenue Service (“IRS”), tax evasion, and perjury. Michael Kerekes, another principal of BDO Seidman and also a former member of BDO's TSG and Tax Opinion Committee, pled guilty in February 2009 to related conspiracy and tax evasion charges. Adrian Dicker, a former Vice Chairman of BDO Seidman and TSG member, pled guilty in March 2009 to related conspiracy and tax evasion charges. BDO partner Robert Greisman pled guilty in July 2009 to related conspiracy, tax evasion, and IRS obstruction charges. BDO partner Mark Bloom pled guilty in July 2009 to a related IRS obstruction charge.
Mr. Bharara thanked the IRS and the Tax Division of the Department of Justice for their work on this case.
This case is being prosecuted by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Stanley J. Okula, Jr., and Jason P. Hernandez, and DOJ Tax Division Assistant Chief Nanette L. Davis, are in charge of the prosecution.
Former Fortune 500 Top Executive of Miami Beach Manufacturing Company Pleads Guilty in Multi-Million Dollar Investment SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Claudio Eleazar Osorio, a/k/a “Claudio Osorio Rodriguez,” 54, of Aventura, pled guilty on February 28, 2013, before U.S. District Court Judge William Dimitrouleas. Osorio pled guilty to two counts of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and one count of conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h).
Sentencing has been scheduled for May 9, 2013. At sentencing, Osorio faces a maximum possible statutory sentence of up to 20 years in prison on each of the wire fraud conspiracies and 10 years in prison on the conspiracy to commit money laundering.
According to documents filed with the court and statements made in court during the plea, Osorio was the owner and majority shareholder of Innovida Holdings, LLC, a Florida limited liability company, located in Miami Beach. Innovida manufactured fiber composite panels for the construction industry for use in residential, commercial, governmental, and other structures without the need for cement, steel or wood. Innovida purported to be a rapidly expanding and financially strong international operation with facilities in the United States, the United Arab Emirates, Germany, Angola, Tanzania, and other countries.
According to statements made in court, between March 2007 and March 2011, Osorio offered and sold shareholder interests and joint-venture partnerships in Innovida to select individuals and groups, raising more than $40,000,000 from approximately ten (10) investors and investment groups in the United States and abroad. Osorio solicited and recruited investors by making materially false representations and concealing and omitting material facts regarding, among other things, the profitability of the company, the rates of return on investment funds, the use of investors’ funds and the existence of a pending lucrative contract with a third-party entity. Osorio received moneys from investors based on these misrepresentations. Osorio used investor monies for his and his co-conspirators’ personal benefit and to maintain and further the fraud scheme.
According to statements made in court, the second conspiracy to commit wire fraud related to a $10,000,000 loan that Osorio and another applied for and obtained a from the Overseas Private Investment Corporation (“OPIC”), a U.S. government agency that promotes U.S. government investments abroad to foster the development and growth of free markets. The purported purpose of the loan was to build a manufacturing facility and 500 homes in Haiti (“the Haiti project”) for displaced families in the aftermath of the January 2010 earthquake. Osorio and others made materially false representations and omissions concerning, among other things, the profitability of Innovida, the purported use of the loan proceeds, an equity contribution to be made by Innovida, and contracts that Innovida purportedly had obtained with third-party vendors. Osorio used the OPIC loan proceeds to repay investors and for his and his co-conspirators’ personal benefit and to further the fraud scheme.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Lois Foster-Steers.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Deputy Director of USAID Contractor Sentenced to 51-Month Prison Term for Embezzling More Than $1 Million- Defendant’s Wife Also Sentenced for Her Role in the Crimes –Read the Press Release
WASHINGTON - Mark Adams, a former deputy director at a private contractor that did business with the U.S. Agency for International Development (USAID), was sentenced today to 51 months in prison on a federal conspiracy charge stemming from the embezzlement of more than $1 million from a program meant to address global health problems.
Adams, 44, and his wife, Latasha Bell, 36, of Fort Washington, Md., each pled guilty in October 2012 before the Honorable Beryl A. Howell, in the U.S. District Court for the District of Columbia, to one count of conspiracy to commit wire and mail fraud. As part of the pleas, they agreed to pay full restitution, and consented to an order forfeiting the amount stolen. The government has already seized about $49,000 in proceeds from the scheme. Upon completion of his prison term, Adams will be placed on three years of supervised release.
Judge Howell said that Adams’s conduct was “downright conniving” and particularly egregious given how the USAID money was supposed to be spent. She also sentenced Bell today to five years of probation, with the first six months to be served under home confinement.
The sentencings were announced by Ronald C. Machen Jr., U.S. Attorney for the District of Columbia, and Michael G. Carroll, Deputy Inspector General for the U.S. Agency for International Development.
As part of the plea, Adams and Bell admitted that Adams used his position as deputy director at a private USAID contractor to submit and approve false and fraudulent invoices and thereby obtain money. Adams admitted his false invoices generated more than $1.084 million in fraudulent payments between 2006 and 2010. The bogus invoices claimed to bill for services from Bell and companies controlled by Adams’s friends, such as co-conspirator Everett Lipscomb Jr. However, the work and services claimed on the invoices were not in fact provided.
Adams and Bell received the payments either directly to Bell or indirectly, when Lipscomb and others paid Adams and Bell part of the money they received. Adams and Bell also used fraudulent invoices to pay a home renovation contractor to complete an extensive renovation of their home. In another instance, Adams and Bell received funds that they used to buy a luxury automobile.
Adams admitted that, by approving the bogus invoices, he caused the USAID contractor, and ultimately USAID, to pay these fraudulent bills out of money from USAID’s global health program. The program addresses major global issues, including HIV/AIDS.
“Unethical contractors who steal from the American taxpayer undermine faith in government and the accomplishment of important public priorities,” said U.S. Attorney Machen. “These defendants renovated their home and bought two luxury cars with dollars intended to save lives from terrible diseases. Today’s sentences should reassure taxpayers that we are doing all we can to defend government programs from theft, waste, and abuse.”
“I would like to express my appreciation for the exceptional work of our investigators and our partners at the Department of Justice involved with this case,” said Deputy Inspector General Carroll. “This sentencing sends a strong message to those who would steal taxpayer money intended to support USAID global health efforts that the USAID OIG will continue to use all necessary resources of the U.S. government to bring justice to those who would defraud the American taxpayer.”
Lipscomb, 43, of Aliso Viejo, Calif., pled guilty in March 2012 to one count of conspiracy to commit wire fraud and related forfeiture allegations. He admitted that he participated in embezzling about $386,279 as part of the scheme. In addition, he admitted that he set up a shell corporation and bank accounts to receive the fraudulent payments and sent them back to Adams. He also acknowledged creating an e-mail account under a false alias to advance the scheme. Lipscomb was sentenced in November 2012 to a 15-month prison term, to be followed by two years of supervised release. He also must join Adams and Bell in paying restitution.
In announcing the sentences, U.S. Attorney Machen and Deputy Inspector General Carroll commended the work of the special agents from the USAID Office of Inspector General, which investigated the case. They also thanked those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Krishawn Graham and Nicole Wattelet, Forensic Accountant Crystal Boodoo, Assistant U.S. Attorney Anthony Saler, who handled forfeiture issues, and Assistant U.S. Attorney Jonathan Hooks, who prosecuted the case.
13-076Former Commander of Mexican State Police and Member of the Gulf Cartel Pleads Guilty to Drug Conspiracy ChargesRead the Press Release
Gilberto Lerma Plata, a former commander of the Mexican State Police and member of the Gulf Cartel, pleaded guilty today to conspiracy to import multi-ton quantities of marijuana into the United States, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Administrator Michele M. Leonhart of the Drug Enforcement Administration (DEA).
Lerma Plata, 50, pleaded guilty before U.S. District Judge Colleen Kollar-Kotelly in the District of Columbia.
On July 29, 2011, Lerma Plata was charged with conspiracy to manufacture and distribute five kilograms or more of cocaine and 1,000 kilograms or more of marijuana for importation into the United States. Lerma Plata was arrested in McAllen, Texas, on May 9, 2012.
“As a Mexican police officer, Gilberto Lerma Plata was supposed to protect the public from harm. Instead, he abused his power to further the notorious Gulf Cartel’s violent narcotics trafficking operations,” said Acting Assistant Attorney General Raman. “This prosecution is the product of the Justice Department’s unwavering commitment to working with its domestic and foreign law enforcement partners to bring cartel members and associates to justice for their crimes.”
“Using operatives such as former Mexican state police commander Gilberto Lerma Plata, the Gulf Cartel has smuggled huge amounts of dangerous drugs into the United States for far too long, while using violence, intimidation and public corruption to strengthen their ability to traffic drugs,” said DEA Administrator Leonhart. “DEA will continue our aggressive and sustained efforts against the Gulf Cartel and other criminal groups by attacking not only their high level leadership and financial networks, but the drug trafficking facilitators who harm neighborhoods and communities in Mexico and the United States.”
Lerma Plata was employed as the commander of the state police in Miguel Aleman, Tamaulipas, Mexico. According to court documents, Lerma Plata was on the Gulf Cartel’s payroll while he was employed by the state police, and he used his position of authority to engage in drug trafficking activities with the cartel. Intercepted conversations revealed that Lerma Plata and high ranking members of the Gulf Cartel discussed the shipment of large quantities of marijuana for distribution in the United States as well as the transportation from the United States of proceeds from the sales of the drugs and firearms.
The case is being prosecuted by Trial Attorneys Adrián Rosales and Darrin McCullough of the Criminal Division’s Narcotic and Dangerous Drug Section. The investigation in this case was led by the DEA’s Houston Field Division and the DEA Bilateral Investigation Unit.
Former City of Hoboken IT Manager Pleads Guilty to Illegally Intercepting and Disclosing E-mails Intended for Hoboken Mayor and Top City OfficialsRead the Press Release
NEWARK, N.J. – A former management information systems specialist for the city of Hoboken pleaded guilty today for intercepting communications meant for the mayor of Hoboken and top city officials and passing some of those communications on to other officials, U.S. Attorney Paul J. Fishman announced.
Patrick Ricciardi, 46, of Hoboken, entered a guilty plea – before U.S. District Judge Esther Salas in Newark federal court – to an Information charging him with accessing a computer without authorization, interception of wire and electronic communications and disclosure of intercepted wire and electronic communications.
According to the documents filed in this case and statements made in court: Ricciardi was a longstanding employee of the city of Hoboken and worked as the chief information technology officer for the mayor’s office. As part of his job duties, Ricciardi was responsible for keeping the city’s network running and had access to email accounts within the city’s computer system and other aspects of the city’s computer network.
In early 2010, Ricciardi created an archive file on his work computer to intercept and store all emails sent to and from the mayor and certain of the mayor’s employees. Neither the mayor nor any other city employee authorized the storage of the emails or the creation of the file.
During his guilty plea proceeding, Ricciardi admitted he used his access to set up the email accounts of the mayor and two of the mayor’s top lieutenants so all of their incoming and sent emails would be sent to the archive folder.
He also admitted that he read some of the emails in order to spy on the mayor and her assistants, and forwarded them to other current and former city officials.
Ricciardi is scheduled to be sentenced on July 1, 2013, before Judge Salas. Each of the three counts carries a maximum potential penalty of five years in prison and a $250,000 fine.
U.S. Attorney Fishman praised special agents of the FBI’s Cyber Crimes Task Force, under the direction of Acting Special Agent in Charge David Velazquez, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Zach Intrater of the U.S. Attorney’s Office Computer Hacking and Intellectual Property Section in the Office’s Economic Crimes Unit in Newark.
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Defense counsel: Assistant Federal Public Defender Donald McCauley, Esq.
Ricciardi Information
Former CFO and Two Associates Given Prison Sentences for Multimillion Dollar Insider Trading SchemeRead the Press Release
SAN FRANCISCO - King Chuen Tang was sentenced yesterday for his role in an insider trading scheme in which he and others obtained more than $5 million, United States Attorney Melinda Haag announced.
United States District Judge Jeffrey S. White sentenced Tang to serve one year and one day in prison followed by three years of supervised release. While on supervised release, Tang is to serve six months in home confinement and to perform 1,000 hours of community service. On February 21, 2013, Judge White sentenced two other defendants involved in this scheme, Joseph Seto and Zisen Yu, to six months in prison followed by three years of supervised release. While on supervised release, Seto and Yu are to serve twelve months in home confinement.
Mr. Tang pleaded guilty on March 15, 2010, to one count of conspiracy and one count of insider trading. On September 8, 2011, Seto and Yu each pleaded guilty to conspiracy. According to the plea agreements, in March 2008, Tang was the CFO at a private equity fund. As the CFO, he learned that Tempur-Pedic International, Inc. (Tempur) was planning a pre-announcement before its regularly scheduled earnings announcement. He also learned that his employer was planning to buy up to $50 million in Tempur securities. Tang shared that information with Seto and Yu. Together they traded on the inside information and netted approximately $1.9 million. In a separate scheme, in April 2007, Tang received a tip from his brother-in-law, who was a CFO at another private equity fund. Tang and others traded on that information and made approximately $3.7 million dollars.
Mr. Tang, 42, of Fremont, California, was charged on February 5, 2010, in a two-count Information with conspiracy to commit insider trading, in violation of Title 18, United States Code, Section 371, and insider trading, in violation of Title 15, United States Code, Sections 78j(b) and 78ff. Mr. Seto, 42, of San Francisco, California, and Mr. Yu, 44, of Fremont, California, were charged on June 22, 2011, in a one-count Information with conspiracy to commit insider trading, in violation of Title 18, United States Code, Section 371.
Mr. Tang, Mr. Seto, and Mr. Yu were ordered to begin serving their sentences on April 29, 2013.
Jonathan Schmidt is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Marina Pononmarchuk. The prosecution is the result of a one-year investigation by the FBI.
Former Bookkeeper for Korean Cultural and Freedom Foundation Sentenced to 24 Months for Tax CrimesRead the Press Release
ALEXANDRIA, Va. – Sookyeong Kim Sebold, aka Sophia Kim, 52, a former resident of McLean, Va., was sentenced to 24 months in prison, three years of supervised release and ordered to pay $133,548 in restitution to the Internal Revenue Service for embezzling more than $800,000 from the Korean Cultural and Freedom Foundation (KCFF) and failing to report the income on her tax returns.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally; and Thomas J. Kelly, Special Agent in Charge of the IRS – Criminal Investigation’s Washington, D.C., Field Office, made the announcement after sentencing by United States District Judge Leonie M. Brinkema.
Sebold was convicted on Dec.14, 2012, of filing a false 2005 tax return and tax evasion for the year 2005.
Sebold worked for the KCFF, a nonprofit organization dedicated to promoting cultural exchange through the sponsorship of the Universal Ballet Company (UBC) and other performing art events. UBC was founded by the Unification Church International (UCI) and Reverend Sun Myung Moon, and KCFF was funded primarily by UCI.
The evidence at trial proved that in 2005, Sebold embezzled more than $400,000 from KCFF’s bank accounts for her own benefit and used these funds for day trading, gambling and other personal expenses. She did not report these funds on her 2005 individual income tax return, resulting in her failure to pay more than $130,000 in taxes. In addition, the evidence at trial established that Sebold had also embezzled funds from KCFF in 2002, 2003, and 2004, for a total of more than $800,000 in unreported income.
This case was investigated by IRS – Criminal Investigation. Assistant United States Attorney Mark Lytle and Tax Division Trial Attorney Caryn Finley prosecuted the case on behalf of the United States.
More information about the Tax Division and its enforcement efforts can be found at www.justice.gov/tax.
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.Former Background Investigator for Federal Government Sentenced to Prison Term for Making A False StatementRead the Press Release
WASHINGTON – Steven J. Sulinski, 54, a former background investigator for the U.S. Office of Personnel Management (OPM), was sentenced today to three months in prison on a charge stemming from his falsification of work on background investigations of federal employees and contractors, announced U.S. Attorney Ronald C. Machen Jr. and Patrick E. McFarland, Inspector General for the Office of Personnel Management.
Sulinski, of Colorado Springs, Colo., pled guilty in November 2012 in the U.S. District Court for the District of Columbia to a charge of making a false statement. He was sentenced by the Honorable Rudolph Contreras. Upon completion of the prison term, Sulinski will be placed on a year of supervised release, including six months that is to be spent on home detention.
Also, as part of the guilty plea, Sulinski agreed to pay $38,238 in restitution to the federal government.
According to a statement of offense submitted to the Court, Sulinski was a Special Agent assigned to the Federal Investigative Services, where his job was to conduct federal background investigations.
Between June 2011 and March 2012, in more than a dozen Reports of Investigations on background investigations, Sulinski represented that he had interviewed a source or reviewed a record regarding the subject of the background investigation. In fact, he had not conducted the interviews or obtained the records of interest. His reports were utilized and relied upon by the agencies requesting the background investigations to determine whether the subjects were suitable for positions having access to classified information, for positions impacting national security, or for receiving or retaining security clearances.
Sulinski’s false representations have required Federal Investigative Services to reopen and rework numerous background investigations that were assigned to him during the time period of his falsifications, at an estimated cost of at least $38,238 to the U.S. government.
Federal Investigative Services has a robust integrity assurance program which utilizes a variety of methods to ensure the accuracy of reported information. The falsification of investigative case work by the defendant was detected through the program.
This is one of numerous cases prosecuted by the U.S. Attorney’s Office for the District of Columbia in the last four years involving false representations by background investigators and record checkers working on federal background investigations. In addition to Sulinski, 13 other background investigators and two record checkers have been convicted of charges.
Federal Investigative Services, through its workforce of approximately 7,300 investigators, is responsible for conducting background investigations for numerous federal agencies and their contractors, on individuals either employed by or seeking employment with those agencies or contractors. Federal Investigative Services conducted more than 2.1 million investigations during the 2012 fiscal year. More than 770,000 of these investigations involved applicants for access or continued access to classified information.
In performing background investigations, the investigators conduct interviews of individuals who have information about the person who is the subject of the review. In addition, the investigators seek out, obtain, and review documentary evidence, such as employment records, to verify and corroborate information provided by either the subject of the background investigation or by persons interviewed during the investigation. After conducting interviews and obtaining documentary evidence, the investigators prepare a Report of Investigation containing the results of the interviews and document reviews, and electronically submit the material to OPM in Washington, D.C. OPM then provides a copy of the investigative file to the requesting agency, which can use the information to determine an individual’s eligibility for employment or a security clearance.
In announcing the sentence, U.S. Attorney Machen and Inspector General McFarland praised the efforts of Special Agents Wayne VanVarick and Nathaniel Smith, OPM, Office of the Inspector General, and Philip Kroop, Chief of Integrity Assurance, OPM-Federal Investigative Services. Mr. Machen and Mr. McFarland also acknowledged the work of Paralegal Specialist Shanna Hays and Assistant U.S. Attorneys Mary Chris Dobbie and Ellen Chubin Epstein, who investigated and prosecuted this matter.
13-078Forfeiture of More Than $15M Worth of Artwork Sought by U.S. Attorney’s OfficeRead the Press Release
NEWARK, N.J. – The United States has filed a civil asset forfeiture Complaint seeking a collection of artwork containing more than 2,200 pieces and valued at more than $15 million, U.S. Attorney Paul J. Fishman announced today.
The Complaint alleges that the artwork – bought with money from the sale of fraudulent credits for renewable fuel – was transported in interstate commerce knowing that it was the proceeds of fraud and was utilized in laundering the proceeds of fraud.
According to the Complaint:
Federal law requires gasoline and diesel refiners and importers to introduce renewable, non-fossil fuel into the national fuel mix. To ensure this, the Environmental Protection Agency created a system of credits known as “Renewable Identification Numbers” – or “RINs” – to track and boost renewable fuel production. The RINs can be obtained by:
· producing renewable fuel; · importing renewable fuel produced by approved foreign producers; · purchasing renewable fuel, with associated RINs, from approved domestic producers; and
· purchasing RINs without the underlying renewable fuel.A market for RINs has developed, and thousands of RIN transactions are electronically recorded with EPA every week. Hundreds of millions of dollars’ worth of RINs are exchanged every year.
A company known as Green Diesel held itself out as operating a facility in Houston, Texas, that generated biomass-based diesel fuel. It did not, however, actually generate any such biodiesel. From November 2007 through at October 2011, Green Diesel sold RINs to companies such as Shell Oil, BP, CITGO, and Exxon that were invalid because they did not, in fact, represent the production of any biodiesel at all. Purchasers of invalid RINs from Green Diesel have reported losses exceeding $78 million.
The owner of Green Diesel, Philip J. Rivkin, used part of the proceeds of the fraud to purchase at least $18 million worth of artwork, chiefly photographs. On Jan. 30, 2012, Rivkin caused 396 packages of artwork to be transported to a warehouse on Frelinghuysen Avenue in Newark. The artwork was stored there until late June 2012, when it was moved to a warehouse in New York on its way to Spain. On July 12, 2012, it was seized for forfeiture pursuant to a warrant issued by a U.S. Magistrate Judge Mark Falk in Newark.
The seized artwork has been appraised by New York Fine Art Appraisers, which concluded that it has a total fair market value of $15,773,128. Among the works sought by the Complaint are:
a. Gelatin silver print titled “Distortion no. 6, Paris” by artist Andre Kertesz. The photograph was purchased by Rivkin from Philips De Prury & Company as part of a group of photographs. Rivkin paid $42,500 for the piece and wired $60,000 as payment for the group of photographs on Nov. 9, 2010.
b. Gelatin silver print titled “Dunes, Oceano” by artist Edward Weston. The photograph was purchased by Rivkin from Sotheby’s as part of a group of photographs. Rivkin paid $134,500 for the piece and wired $424,750 as payment for the group of photographs on Nov. 11, 2010.
c. Gelatin silver print titled “Death Valley” by artist Edward Weston. The photograph was purchased by Rivkin from Sotheby’s as part of a group of photographs. Rivkin paid $16,250 for the piece and wired $424,750 as payment for the group of photographs on Nov. 16, 2010.d. Albumen print titled “Notre Dame” by artist Eugene Atget. The photograph was purchased by Rivkin from Camera Lucida, LLC as part of a group of photographs. Rivkin paid $130,000 for the piece and wired $1,267,000 as payment for the group of photographs on Feb. 8, 2011.
e. A 1907 platinum print titled “Nude Study, Miss Mabel Cramer” by artist Clarence Hudson White. The photograph was purchased by Rivkin from Camera Lucida, LLC as part of a group of photographs. Rivkin paid $35,000 for the piece and wired $1,267,000 as payment for the group of photographs on Feb. 8, 2011.
f. A 1930 silver print titled “Equivalent” by artist Alfred Stieglitz. The photograph was purchased by Rivkin from Lee Gallery for $33,000. Rivkin wired $33,000 as payment for the photograph on February 28, 2011.
g. Gelatin silver print titled “Poplars, Lake George” by artist Alfred Stieglitz. The photograph was purchased by Rivkin from Joel Soroko Gallery for $51,000. Rivkin wired $51,000 as payment for the photograph on March 7, 2011.
h. Vintage warm-toned matte-surface gelatin silver print titled “Vortograph 1917” by artist Alvin Langdon Coburn. The photograph was purchased by Rivkin from Camera Lucida, LLC as part of a group of photographs. Rivkin paid $175,000 for the piece and wired $1,400,000 as payment for the group of photographs on March 10, 2011.
i. Vintage gelatin silver contact print titled “From the Shelton, West” by artist Alfred Stieglitz. The photograph was purchased by Rivkin from Camera Lucida for $150,000. Rivkin wired $150,000 as payment for the photograph on March 31, 2011.
j. Vintage matte gelatin silver print titled “Knees (fragment)” by artist Edward Weston. The photograph was purchased by Rivkin from Camera Lucida, LLC as part of a group of photographs. Rivkin paid $165,000 for the piece and wired $1,400,000 as payment for the group of photographs on March 31, 2011.
k. An 1894 platinum print titled “The Letterbox” by artist Alfred Stieglitz. The photograph was purchased by Rivkin from Lee Gallery for $35,700. Rivkin wired the $35,700 payment for the photograph on April 5, 2011.
l. Vintage gelatin silver print titled “Greta Garbo for Vanity Fair Hollywood” by artist Edward Steichen. The photograph was purchased by Rivkin from Paul Hertzman, Inc. Vintage Photographs for $75,000. Rivkin wired $75,000 as payment for the photograph on April 11, 2011.
m. Waxed palladium print titled “Georgia O’Keeffe” by artist Alfred Stieglitz. The photograph was purchased by Rivkin from Camera Lucida, LLC for $675,000. Rivkin wired $675,000 as payment for the photograph on April 12, 2011.
n. Gelatin silver print titled “Equivalent, 1925” by artist Alfred Stieglitz. The photograph was purchased by Rivkin from Bruce Silverstein Gallery, LLC as part of a group of photographs. Rivkin paid $55,000 for the piece and wired $150,000 as payment for the group of photographs on April 12, 2011.
Civil forfeiture cases are “in rem” proceedings—proceedings against “things.” In this case, the Complaint is against the seized artwork, not against the persons who committed the underlying unlawful acts or anyone else. The law permits persons claiming an interest in the property an opportunity to appear and present their cases that they are innocent owners of the property and the property should not be forfeited. Whether the United States is entitled to forfeit the property will be determined conclusively. When property is forfeited to the United States, the law allows the U.S. Department of Justice to utilize the property to reimburse victims of the underlying unlawful activity for their losses.
U.S. Attorney Fishman credited special agents from the EPA-Criminal Investigation Division, under the direction of Special Agent in Charge Ivan J. Vikin, Area Office in Dallas, Texas; and special agents from the U.S. Secret Service under the direction of Special Agent in Charge Cynthia Marble in Houston, Texas, and Special Agent in Charge James Mottola in New Jersey, for the investigation that led to the seizure of the artwork.
The government is represented by Assistant U.S. Attorney Marion Percell, Chief of the U.S. Attorney’s Office’s Asset Forfeiture and Money Laundering Unit, in Newark.
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Green Diesel Complaint
Fairbanks Man and Three Women arrested on indictment for drug conspiracy and money launderingRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that on February 28, 2013, four residents of Fairbanks, Alaska, were arrested. These individuals were indicted by a federal grand jury in Anchorage on February 20, 2013, on charges of conspiracy to distribute and possess with intent to distribute heroin and oxycodone pills in Fairbanks, as well as conspiracy to launder proceeds of unlawful distribution of controlled substances. The indictment alleges that the conspiracy began in September 2010 and continued through October 2012.
The indictment names Nathan Jackson, 26, Cynthia Hawks, 44, Fabienne Clerc, 22, Hailey Jelinek, 20 and Misty McDonald 25, as defendants. Jackson, Hawks, Clerc, and Jelinek were all arrested on February 28, 2013, McDonald remains at large.
The law provides for a maximum sentence of 20 years in prison, a fine of $1,000,000.00, or both. 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 defendants.
Ms. Loeffler commends the Internal Revenue Service – Criminal Investigation Division, the Alaska State Troopers, the Drug Enforcement Administration and the North Pole Police Department for the investigation of 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.
FBI Safe Streets Task Force Investigation Results in Charges Against 20 People in Alleged Drug Trafficking OrganizationRead the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerCINCINNATI – A 13-month investigation by the FBI Cincinnati Safe Streets Task Force has resulted in charges against 20 people alleged to be members of a drug trafficking organization in Cincinnati’s East Clifton Avenue area of Over-the-Rhine. FBI tactical teams, Special Agents and task force officers began arresting the defendants this morning.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation Cincinnati Field Office (FBI) announced the charges in an indictment and two complaints which were unsealed following the arrests.
The indictment alleges that the individuals conspired to “corner the market” for distribution of heroin in Over-the-Rhine. All are charged with conspiracy to possess with intent to distribute heroin and crack cocaine, a crime punishable by at least ten years and up to life in prison.
Eighteen defendants, all from Cincinnati, are named in an indictment returned on February 20, 2013 and unsealed today are:
Shantez Rembert, aka “Tez, 21, Demico Higgins, aka “Freak””Mico” “Meco”, 32
Frederick Benton III, aka “Red”, 35 Brien Champion, aka “Wienerhead” “B”, 29
David McPherson, aka “Dae Dae”, 38 Eric Brock, aka “E” “Big Head E”, 31
Casey Brock, 28 Antonio Montgomery, aka “Slice”, 27
Eric Gunn, aka “Rambo” “Bo”, 21 Frederick Baskin, aka “Freddy”, 50
Ralph Evans, 21 Damian Finnerson, aka “Dane”, 23
Dwayne Finnerson, aka “Weezy”, 30 Yolanda Rembert, 42
Sholanda Rembert, 25 Shawniece Grant-Cavins, aka “Nae Nae”, 21
Martha Clark, 19 McKinley Barnwell, aka “Kenny”, 60Criminal complaints have been filed against two others, Mario Harris, 27 and Tonya M. Jackson, 31.
U.S. Attorney Stewart commended the cooperative investigation by task force officers which includes FBI agents, Cincinnati Police officers and members of the Ohio State Highway Patrol. Assistant U.S. Attorney Karl Kadon is representing the United States in the case.
The indictment also alleges that Higgins distributed a large amount of crack cocaine on a single occasion. The indictment charges some of the individuals with running “stash houses” for the drug trafficking organization, including operations near playgrounds and schools.
The defendants will appear before U.S. Magistrate Judge Stephanie Bowman on Monday, March 4, who will determine whether or not they will be released on bond and schedule dates for future court appearances.
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.
East St. Louis Man Sentenced on Crack Cocaine ChargesRead the Press Release
Anthony Montez Taylor, 45, of East St. Louis, Illinois, was sentenced in United States District Court in East St. Louis, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The Court determined that Taylor was a career offender under the United States Sentencing Guidelines, and then sentenced Taylor to 144 months imprisonment, followed by four years of supervised release. The Court also imposed a fine of $400 and a special assessment of $100. Taylor had previously entered a plea of guilty to a single count of Possession with the Intent to Distribute Crack Cocaine.
Information contained in the Stipulation of Facts, which was filed at the time of the plea, shows that on March 5, 2012, officers of the Fairmont City Police Department conducted a business check at a motel in Fairmont City, Illinois. Officers smelled the odor of marijuana coming from a room occupied by Taylor and investigated. During a subsequent search of the room, officers located 42.8 grams of crack cocaine, which Taylor admitted belonged to him.
Evidence in support of the indictment was obtained in an investigation by the Fairmont City Police Department and the Drug Enforcement Administration. This case was assigned to Assistant United States Attorney Randy G. Massey.
East Hartford Man Sentenced to Eight Years in Federal Prison for Trafficking CocaineRead the Press Release
March 1, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that MIGUEL ALAMO, 36, of East Hartford, was sentenced today by United States District Judge Stefan R. Underhill in Bridgeport to 96 months of imprisonment, followed by five years of supervised release, for trafficking cocaine.
According to court documents and statements made in court, on April 28, 2010, as part of an undercover operation, investigators seized 15 kilograms of cocaine that were intended for delivery to ALAMO. ALAMO was arrested the following day. A subsequent search of ALAMO’s East Hartford residence revealed more than 12 kilograms of cocaine, drug packaging and processing materials, and $27,840 in cash.
ALAMO has been detained since his arrest on April 29, 2010. On June 1, 2011, he pleaded guilty to one count of conspiracy to possess and distribute five kilograms or more of cocaine.
This matter was investigated by the Drug Enforcement Administration, with the assistance of the Federal Bureau of Investigation and Homeland Security Investigations.
The case was prosecuted by Assistant United States Attorney Geoffrey M. Stone.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Eagle Butte Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota man convicted of Assault Resulting in Serious Bodily Injury was sentenced on February 25, 2013 by U.S. District Judge Roberto A. Lange. Mahlon Jeffries, age 26, was sentenced to 48 months in custody, followed by 2 years of supervised release. Jeffries is also to pay $100 to the Victim Assistance Fund.
Jeffries was indicted for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury by a federal grand jury on September 19, 2012. Jeffries pled guilty to Count II of the Indictment. The charge stems from an incident occurring on December 25, 2011, during which Jeffries assaulted his brother by striking him on the head with a wood and metal yard tool. His brother suffered a left parietal, open, depressed skull fracture and subarachnoid hemorrhage which required emergency surgery to remove bone fragments from his brain.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement and Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Jeffries was immediately turned over to the custody of the U.S. Marshal.
Dubuque Man Pleads Guilty to Manufacturing Methamphetamine Which Caused House FireRead the Press Release
A man whose house caught fire from an illegal methamphetamine lab pled guilty on February 28, 2013, in federal court in Cedar Rapids.
Rory Lee Zirkelbach, age 43, from Dubuque, Iowa, was convicted of one count of manufacturing methamphetamine within 1000 feet of a protected location following a prior felony drug conviction.
The evidence at a prior detention hearing showed that on May 31, 2012, Zirkelbach attempted to make methamphetamine on the second floor of his residence on Jackson Street in Dubuque. The methamphetamine lab caught fire. A passing bus driver stopped his bus in front of the house and yelled at a neighbor standing on the front porch that the house was on fire. The neighbor reentered her half of the burning house to rescue her sleeping minor child. During the investigation of the fire, officials found the remnants of the methamphetamine lab which caused the fire. This residence was within 1,000 feet of Fulton Elementary School and Comiskey Park, both protected locations. Zirkelbach was convicted in 1998 of possession with intent to deliver amphetamine and possession with intent to deliver cocaine.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Zirkelbach remains in custody of the United States Marshal pending sentencing. Zirkelbach faces a mandatory minimum sentence of one year imprisonment and a possible maximum sentence of 60 years’ imprisonment, a $4,000,000 fine, a $100 special assessment, and at least six years and not more than life on supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Daniel C. Tvedt and was investigated by the Dubuque Drug Task Force consisting of officers from the Dubuque Police Department and the Dubuque County Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-1001.
District Man Sentenced to More Than Five Years in Prison for Robbing A Senior Citizen in Northwest Washington-With Citizens’ Help, Defendant Was Identified and Arrested Soon After the Robbery-Read the Press Release
WASHINGTON – Jerome Clark, 45, of Washington, D.C., has been sentenced to a prison term of five years and two months on a charge stemming from the robbery of a senior citizen in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced today.
Clark pled guilty to a charge of robbery in December 2012 in the Superior Court of the District of Columbia. He was sentenced Feb. 27, 2013 by the Honorable Robert I. Richter. Upon completion of his prison term, Clark will be placed on three years of supervised release. Also, as part of his plea agreement, Clark must pay the victim $1,000 in restitution.
According to the government’s evidence, on Nov. 2, 2012 at about 4:30 p.m., the victim, a 70-year-old man, was exchanging information with a young man after the two had been involved in a traffic accident in the 5100 block of New Hampshire Avenue NW. Clark walked up to the two men and told them that he had seen what happened. Then, as the victim was attempting to get his insurance information for the young man, Clark snatched his wallet, which contained, in part, approximately $1,000 in cash, and ran.
The victim, the young man, and other witnesses, including a mail carrier who was in the area, chased the defendant. The victim fell during the chase, injuring his leg, but the young man and mail carrier continued their pursuit. As Clark kept running, he tossed the wallet. He ran inside his residence, which was nearby, and was arrested soon afterward.
In announcing the sentence, U.S. Attorney Machen expressed appreciation to the officers who investigated the case for the Metropolitan Police Department. He also acknowledged the work of those who handled the case at the U.S. Attorney’s Office, including Paralegal Specialist Debra McPherson, and Assistant U.S. Attorney Natalia Medina, who prosecuted the matter.
13-074District Man Sentenced to 15 Years in Prison for Two Robberies, Including One of an Armored Truck-Defendant Also Attempted A Robbery of A Second Armored Truck-Read the Press Release
WASHINGTON - Ricardo Hunter, 55, was sentenced today to 15 years in prison for two armed robberies, one of a business and the other of an armored truck, as well as an attempted armed robbery of an armored truck and a related weapons offense, announced U.S. Attorney Ronald C. Machen Jr. and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Hunter, of Washington, D.C., pled guilty in December 2012 in the U.S. District Court for the District of Columbia to two counts of interference with interstate commerce by robbery; one count of attempted armored car robbery while armed, and one count of possessing a firearm during a crime of violence. He was sentenced by the Honorable Richard W. Roberts. Upon completion of his prison term, Hunter will be placed on five years of supervised release. In addition, Judge Roberts issued an order of forfeiture in the amount of $35,157 and ordered Hunter to pay the same amount in restitution for the crimes.
According to the government’s evidence, Hunter planned and carried out two brazen robberies, and attempted to conduct a third.
The first robbery took place at about 6 a.m. on Sept. 28, 2010 at the Northeast Washington office of the Old Town Trolley Tours of Washington DC/DC DUCKS. According to the government’s evidence, the manager was preparing to open the business for the day. As the manager was opening the office’s main exterior door, he was approached from behind by Hunter and another man, both of whom wore masks to cover their faces. Hunter was armed with a handgun. The manager was told to open the door, and was advised that if the alarm went off, he “was dead.” Hunter and his accomplice proceeded to rob the office of $6,833 in cash.
The second robbery occurred on the morning of Nov. 22, 2010 at a gas station in the 2800 block of Sherman Avenue NW. According to the government’s evidence, Garda Cash Logistics dispatched an armored truck to deliver and pick up U.S. currency from the gas station. Upon arriving at the station, the armed Garda guard entered the establishment, where he received three bags of money containing $28,324. When he returned to the truck, the guard was approached by Hunter and two other men. One of the men declared, “Give it up,” while he pointed a handgun at the guard’s stomach. This man then took the money bag, while Hunter stole the guard’s loaded handgun. The three robbers then fled the area with the money and the guard’s gun.
In the third incident, in the days before Feb. 12, 2011, Hunter recruited one of his earlier accomplices and another man to assist him in robbing another armored truck. On Feb. 12, 2011, at about 7 a.m., Hunter and one of these men met at Hunter’s residence. From there, Hunter gathered the firearms that were to be used in the robbery, including a 9mm Luger Hi-Point pistol, the handgun that was stolen from the Garda guard, and an AK-47 semiautomatic assault weapon.
Hunter and his accomplice then picked up the third man and they drove around until seeing the armored truck. When the armored truck stopped near an alley in Northeast Washington, D.C., Hunter and one of the accomplices, both of whom were armed with handguns, exited the car and approached it. They were then stopped by law enforcement. The third man remained in the car with the AK-47. Also recovered from the car were black ski masks, black gloves and clear plastic gloves.
At the time of these offenses, Hunter was on parole after serving more than 25 years in prison for murder and other crimes. As such, he will now have a parole hearing at which he could be sentenced to an additional period of incarceration.
In announcing the sentence, U.S. Attorney Machen and Assistant Director in Charge Parlave commended the work of the FBI’s Violent Crimes Task Force, which investigated the case with assistance from the Metropolitan Police Department. They also acknowledged the efforts of Paralegal Specialist Jeannette Litz, who provided administrative support, and Assistant U.S. Attorney Erin Andrews, who handled the initial investigation. Lastly they praised Assistant U.S. Attorney Catherine K. Connelly, who investigated and indicted the matter, and Assistant U.S. Attorneys Robert Bowman, and Jonathan M. Malis, who assisted in the prosecution.
13-075District Man Pleads Guilty in Sexual Assault Against Woman in Southeast Washington-Defendant Told the Victim: “You Will Always Be Mine”-Read the Press Release
WASHINGTON – A 41-year-old man pled guilty today to a charge stemming from a recent sexual assault against a woman with whom he had a child, U.S. Attorney Ronald C. Machen Jr. announced.
The defendant, of Washington, D.C., is not identified here to protect the privacy of the victim and her family. He pled guilty in the Superior Court of the District of Columbia to one count of attempted first-degree sexual abuse. The Honorable Ronna L. Beck scheduled sentencing for May 10, 2013.
According to the government’s evidence, the defendant and the victim once had a romantic relationship and she is the mother of his teenage child. On or about Jan. 10, 2013, he learned that the victim was involved in a romantic relationship with another man, which upset him. That day, he spoke to the victim on the telephone, demanding sex. When she rejected his advances, he showed up at her house in Southeast Washington, sent their child to the store to buy food, and propositioned her again. When the victim rejected his advances and told him that she was seeing someone, the defendant forced her to the bed and sexually assaulted her. During the assault, the defendant told the victim, among other things, that, “you will always be mine.”
In announcing the guilty plea, U.S. Attorney Machen commended the officers and detectives of the Metropolitan Police Department’s Sexual Assault Unit, who investigated the case. He also expressed appreciation to Paralegal Specialists D’Yvonne Key and Kristy Penny, and Assistant U.S. Attorney Mervin A. Bourne, Jr., who investigated and prosecuted the case.
13-079District Man Found Guilty of Murder Charges in 2003 Shooting That Killed Two Men-Victims Were Brothers, Shot in Northeast Washington-Read the Press Release
WASHINGTON - Floyd Brooks, 38, of Washington, D.C., was found guilty by a jury today of two counts of first-degree premeditated murder and related weapons offenses for the slayings of two brothers in 2003, U.S. Attorney Ronald C. Machen Jr. announced.
A jury returned the verdicts following a trial in the Superior Court of the District of Columbia. The Honorable Lynn Leibovitz scheduled sentencing for May 10, 2013. Brooks faces a mandatory minimum of 30 years in prison on each of the murder charges.
According to the government’s evidence, in the early morning hours of Dec. 9, 2003, Brooks and Robert Williams, 29, exchanged words regarding drug sales in the Clay Terrace neighborhood of Northeast Washington. A short time later, Brooks returned and opened fire in the 5300 block of Clay Terrace NE, shooting Robert Williams and his younger brother, Raymond Williams, 22, multiple times. He then fled the scene.
Robert Williams died on the scene from his injuries, which included four gunshot wounds to the face. Raymond Williams was transported to Howard University Hospital, where he died a short time later from injuries including four gunshot wounds to the face and one wound to the neck that severed his spinal column at the base of his brain.
Brooks was arrested for the murders in 2009. At the time, he was serving a prison sentence in Maryland on gun charges.
In announcing the verdict, U.S. Attorney Machen commended the efforts of the current and former Metropolitan Police Department (MPD) detectives who investigated the case, as well as the mobile crime scene technicians and others who worked on the matter.
U.S. Attorney Machen also extended his appreciation to those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Marcia Rinker; Witness Security Specialists Laverne Forrest and Tanya Via; Paralegal Specialists Fern Rhedrick, Sandra Lane and Alesha Yette; Litigation Technology Specialists Thomas Royal and Anisha Bhatia, and Intelligence Specialist Lawrence Grasso. Finally, he praised the work of Assistant U.S. Attorney VinÁt Bryant, who secured the indictment in the case and prosecuted the matter at trial.
13-077District Man Convicted of First-Degree Murder While Armed and Other Charges in Slaying in Southeast Washington-Attack Took Place on Halloween Night 2009-Read the Press Release
WASHINGTON – Darrell Lee, 24, of Washington, D.C., was found guilty by a jury today of first-degree murder while armed and related firearms charges in a killing that took place on Halloween 2009 in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Ronna L. Beck scheduled sentencing for May 17, 2013.
According to the government’s evidence, on the evening of Oct. 31, 2009, the victim, Ashton Hunter, 19, was staying with his girlfriend in an apartment building in the 300 block of 37th Street SE. That night, he went outside, expecting to meet one of his acquaintances from his home neighborhood of 7th & O Streets NW. Mr. Hunter went outside and met with Lee, had a conversation with him, and then started to walk back into the apartment building.
As Mr. Hunter approached the building entrance, Lee followed him down the sidewalk, pulled out a gun and shot him several times in the torso. Mr. Hunter died later that night from his injuries.
In announcing the verdict, U.S. Attorney Machen expressed his appreciation to the detectives, officers and others who worked on the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Phaylyn Hunt and Meridith McGarrity; Information Technology Specialists Leif Hickling and Joe Calvarese, Victim/Witness Specialist Debra Cannon, and Supervisory Victim/Witness Specialist Michael Hailey. Finally, he commended the work of former Assistant U.S. Attorney Eric Gallun, who obtained the indictment in the case, and Assistant U.S. Attorneys David Gorman and Richard DiZinno, who investigated and prosecuted the case at trial.
13-080Davenport Man Sentenced After Federal Conviction for Bank RobberyRead the Press Release
DAVENPORT, IA - On March 1, 2013, Arnordo Corderrel Turner, age 25, from Davenport, Iowa, was sentenced by United States District Court Judge John A. Jarvey to 57 months imprisonment after pleading guilty to bank robbery, announced United States Attorney Nicholas A. Klinefeldt. Turner was also ordered to serve three years supervised release and pay $100 towards the Crime Victims Fund. On June 11, 2013, Turner entered and robbed Northwest Bank and Trust in Davenport, Iowa.
This case was investigated by the Federal Bureau of Investigation and the Davenport Police Department, and was prosecuted by the U. S. Attorney’s Office for the Southern District of Iowa.
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Dallas Man Admits Possessing More Than 8,000 Images of Child PornographyRead the Press Release
DALLAS — Howard Tyson, 45, of Dallas, pleaded guilty this morning, before Chief U.S. District Judge Sidney A. Fitzwater, to a criminal information charging one count of possession of child pornography. Tyson faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. Judge Fitzwater ordered Tyson to surrender to the Bureau of Prisons on Monday, March 4, 2013, and set a sentencing date of June 14, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Tyson used a peer-to-peer file-sharing program to download child pornography from the Internet onto his computer and his wife’s computer. When agents with the U.S. Secret Service executed a federal search warrant at his residence on July 26, 2011, Tyler admitted that he had been downloading child pornography for approximately one year. He said that he downloaded most of the child pornography onto his wife’s laptop computer. A forensic examination of both computers showed that the hard drives contained more than 8,000 images and 20 videos of child pornography. Tyson acknowledged that some of the images were sadistic and that the images and videos were of real prepubescent and pubescent minors.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The U.S. Secret Service and the Plano, Texas, Police Department are investigating. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Convicted Felon Sentenced to 15 Years in Prison for Possessing A Stolen Assault RifleRead the Press Release
BRUNSWICK, Ga. – Alex M. Bennett, 32, of Broxton, Georgia, was sentenced yesterday by Chief United States District Judge Lisa Godbey Wood to 15 years in prison for possessing an assault rifle as a convicted felon. He was also sentenced to serve 5 years supervised release upon his release from prison.
Evidence presented during the guilty plea and sentencing hearings revealed that Bennett burglarized a residence in Hazlehurst, Georgia, where he stole an SKS semi-automatic rifle with a 20 round magazine. Because Bennett had three prior convictions for drug offenses and robberies, he was classified as an “armed career criminal” under federal law and faced a minimum mandatory sentence of 15 years.
The case was investigated by the Hazlehurst Police Department and the ATF. The case was prosecuted under Project Ceasefire, a joint federal, state and local firearms initiative involving the U.S. Attorney’s Office, the ATF and various local police departments.
United States Attorney Edward Tarver said: “Through project Ceasefire, the United States Attorney’s Office will be relentless in its enforcement of federal firearms laws. Project Ceasefire has proven to be an effective tool in the Department of Justice’s efforts to rid the streets of dangerous felons who carry guns. Felons who possess firearms can expect to be returned to prison. ”
Assistant U.S. Attorney Carlton Bourne prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Christie Ann Medicine Tail Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on March 1, 2013, before Chief U.S. District Judge Richard F. Cebull, CHRISTIE ANN MEDICINE TAIL, a 35-year-old resident of Lodge Grass, was sentenced to a term of:
- Prison: 10 months and 6 days (time served)
- Special Assessment: $100.00
- Supervised Release: 4 years
MEDICINE TAIL was sentenced in connection with his guilty plea to distribution of methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Marcia K. Hurd, the government stated it would have proved at trial the following:
Law enforcement had information that MEDICINE TAIL was selling methamphetamine as part of a bigger drug operation in Big Horn County and on the reservations.
On August 19, 2011, MEDICINE TAIL sold a confidential informant methamphetamine for $200 while at MEDICINE TAIL's residence in Big Horn County.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that MEDICINE TAIL will likely serve all of the time imposed by the court. In the federal system, MEDICINE TAIL 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 Montana Division of Criminal Investigation.
Chicago Man Sentenced to 108 Months' Imprisonment for Thefts of Firearms from Gun ShopsRead the Press Release
A Chicago, Illinois, man was sentenced to a prison term in federal district court in connection with burglaries of several firearms dealers in Illinois, Indiana, and Wisconsin, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Denis M. Joiner, 20, of Chicago, Illinois, was sentenced in federal district court in East St. Louis to 108 months’ imprisonment, 3 years’ supervised release, and a $300 special assessment, following his plea of guilty, on November 1, 2012, to an Indictment charging him with: Theft of Firearms from a Federal Firearms Licensee; Conspiracy to Steal Firearms from a Federal Firearms Licensee; and Possession Stolen Firearms.
Pleadings filed with the Court indicate that Joiner, together with three other Chicago men, burglarized DT Enterprises, also known as “Hunting Stuff,” in Salem, Illinois, on December 24, 2011, stealing 124 firearms, which they then took back to Chicago to sell. Law enforcement agents in Chicago learned of the conspirators’ identities after Joiner and a codefendant were caught shooting firearms into the air on January 1, 2012. After arresting one of the co-defendants for the shooting, agents were able to match fingerprints from a tote box left at the scene to those of the four suspects. Agents also learned that tote boxes such as the one found at the scene were sold at Lowe’s in Carbondale; the agents then recovered security videos from Lowe’s showing the four suspects selecting and paying for such totes and other items at Lowe’s on December 23, 2011. The four suspects in the Lowe’s video also appeared in DT Enterprises’ security video loading guns into the tote boxes.
One co-defendant, Kevin Winford, was sentenced November 2, 2012, to 70 months’ imprisonment for his role in the crimes; another co-defendant, Antoine White, was sentenced November 16, 2012, to 78 months’ imprisonment. The fourth conspirator, Earl Warner, was murdered in Chicago in January, 2012. Joiner’s sentence was higher than the others due to a greater criminal history and due to Joiner’s reckless flight from authorities prior to arrest.
Other gun shops victimized by the co-conspirators were: Maxon Shooters Supplies, Des Plaines, Illinois (190 guns stolen); Rinks Gun & Sport, Inc., Lockport, Illinois (34 guns stolen); Fletcher Gun, Waukeesha, Wisconsin (29 guns stolen); Deb’s Gun Range, Hammond, Indiana (30 guns stolen); The Gun Doctor, Roselle, Illinois (48 guns stolen).
The judge ordered restitution to all of the aforementioned victims.
The case was investigated by members of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant U.S. Attorney Stephen B. Clark.