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Monday 14 January 2013
Two Essex County, N.J., Men Charged with CarjackingRead the Press Release
NEWARK, N.J. – One of two Essex County, N.J., men arrested in connection with a gunpoint carjacking in March 2012 is expected to make his initial appearances in court today, U.S. Attorney Paul J. Fishman announced.
Sharod Culp, 19, and Anthony Jefferson, 19, both of Newark, are charged by Complaint with one count of theft of a motor vehicle by force, violence, and intimidation, and one count of use of a firearm in furtherance of a crime of violence. Culp is scheduled to make his initial court appearance this afternoon before U.S. Magistrate Judge Patty Shwartz. Jefferson was arrested in Florida and will make his initial court before U.S. Magistrate Judge Thomas B. McCoun 3rd in Tampa federal court.
According to the Complaint:During the morning of March 11, 2012, Culp and Jefferson approached two individuals who were sitting in a parked 2009 Hyundai Sonata in the area of Patterson Street in Newark. Culp pointed a firearm at the victims, and both Culp and Jefferson ordered the victims to get out of the car. After robbing, taunting and threatening the victims, Culp and Jefferson fled the area in the carjacked vehicle.
The carjacking count is punishable by a maximum potential penalty of 15 years in prison. The charge of use of a firearm in furtherance of a crime of violence is punishable by a maximum potential penalty of life in prison and a mandatory minimum sentence of 7 years in prison, which must run consecutively to any other prison term. Each of the two counts also carries a maximum fine of $250,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez in Newark; the Newark Police Department, under the leadership of Director Samuel A. DeMaio and Chief Sheilah A. Coley; and the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; as well as criminal investigators from the U.S. Attorney’s Office in Newark with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Lisa M. Colone of the U.S. Attorney’s Office Criminal Division in Newark.The charges and allegations contained in the Complaint are merely accusations and the defendants are considered innocent unless and until proven guilty.
13-025
Defense counsel: Donald McCauley Esq., Assistant Federal Public Defender, NewarkCulp, Sharod Et. Al. Complaint
Tupper Lake Man Sentenced to 6 Years for Possession of Child PornographyRead the Press Release
Richard S. Hartunian, United States Attorney, Northern District of New York, announced that JAMES L. TABOLT, JR., age 40, of Tupper Lake, New York was sentenced in U.S. District Court in Albany today in connection with his guilty plea on September 13, 2012 to possession of child pornography. In entering his guilty plea before Senior U.S. District Judge Thomas J. McAvoy, TABOLT had admitted that between June 2012 and February 2011 he possessed more than 1300 images of child pornography on a home computer.
Today, Judge McAvoy sentenced TABOLT to 72 months incarceration to be followed by a 15 year term of federal Supervised Release. He will also be required to register with New York State as a sex offender.
In December of 2010, a New York State Police investigator assigned to the New York Internet Crimes Against Children Task Force detected images of child pornography being made available from an internet protocol address in the Tupper Lake area. Investigators were able to determine the images came from a computer in the defendant’s residence. Following the execution of a search warrant by members of the New York State Police, Tupper Lake Police Department, and the Franklin County Sheriff’s Department, the defendant’s computer was seized. A forensic examination was conducted following the issuance of a federal search warrant, which resulted in the recovery of more than 1300 images of child pornography.
TABOLT’s arrest was the result of a joint investigation conducted by the New York State Police, Tupper Lake Police Department, Franklin County Sheriff’s Department, Clinton County Sheriff’s Department, the U.S. Immigration and Custom’s Enforcement (ICE), Homeland Security Investigations (HSI), and the New York State Internet Crimes Against Children Taskforce (ICAC). Assistance was also provided by the Utica Police Department’s Digital Forensics Laboratory. The joint effort is a part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was prosecuted by Executive Assistant U.S. Attorney John G. Duncan.
Three Individuals Sentenced in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA — Three individuals were sentenced on January
7, 2013, in United States District Court in Martinsburg by Judge Gina M. Groh.United States Attorney William J. Ihlenfeld, II, announced that:
GREGORY LYTE, JR., age 36, of Hagerstown, Maryland, was sentenced to 87 months imprisonment to be followed by 6 years of supervised release. LYTE entered a plea of guilty on September 12, 2012, to “Distribution of Crack Cocaine” on September 30, 2011, in Martinsburg. LYTE was remanded to the custody of the United States Marshal pending designation to a Federal institution. The case was investigated by the Eastern Panhandle Drug
& Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, and the Berkeley County Sheriff’s Department.LOREN CONSTANTINE BROWN, age 43, of Silver Springs, Maryland, was sentenced to 70 months imprisonment to be followed by 4 years of supervised release. BROWN entered a plea of guilty on September 13, 2012, to “Possession with Intent to Distribute 88.4 Grams of Crack Cocaine” on June 28, 2012, in Keyser, West Virginia. BROWN was remanded to the custody of the United States Marshal pending designation to a Federal institution. The case was investigated by the Potomac Highlands Drug & Violent Crime Task Force, consisting of officers from the Federal Bureau of Investigation, and the West Virginia State Police - Bureau of Criminal Investigations.
These cases were prosecuted by Assistant United States Attorney Thomas O. Mucklow.
JAMES ALBERT WOLF, age 64, of Kearneysville, West Virginia, was sentenced to 51 months imprisonment to be followed by 15 years of supervised release. WOLF entered a plea of guilty on September 13, 2012, to “Possession of Child Pornography.” During a search warrant executed on WOLF’S residence, several computers were seized which contained 30 still images and 59 video images of child pornography. WOLF, who is free on bond, will self- report to the designated Federal institution on February 11, 2013. This case was prosecuted by Assistant United States Attorney Paul T. Camilletti and investigated by the West Virginia State Police.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Thirteen People Indicted for Roles in Ring That Brought Heroin to Ashtabula, Led to Overdose DeathRead the Press Release
A federal grand jury returned a 42-count indictment against 13 people who are accused of participating in a large-scale heroin trafficking ring in the Ashtabula areas and resulted in the overdose death of an Ashtabula resident last year.
The unsealing of the indictment was announced today by Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, Robert L. Corso, Special Agent in Charge of the U.S. Drug Enforcement Administration, Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation, and William Johnson, Ashtabula County Sheriff.
The indicted individuals are:
DEFENDANTAGE
ADDRESS
Rayshawn Reed, aka “Ray,” aka “Racey”
37
Ashtabula, Ohio
30
Ashtabula, Ohio
Jamarce Miller, aka “Jamie”
36
Ashtabula, Ohio
Amanda Loving
30
Geneva, Ohio
Isaac Hawkins
24
Unknown
Louis Snyder
48
Ashtabula, Ohio
James Robinson, aka “Marell Holley”
37
Ashtabula, Ohio
Tricia Lewis
35
Ashtabula, Ohio
Joey Schmeisser
30
Unknown
Kevin Fridrich
28
Geneva, Ohio
Reginald Bryant, aka “Reg”
39
Euclid, Ohio
Shaunci Osborne
20
Ashtabula, Ohio
Laketha Harris, aka “Jay”
35
Ashtabula, Ohio
Count 1 of the indictment charges the defendants with conspiracy to distribute more than a kilogram of heroin, a Schedule I controlled substance.Count 2 of the indictment charges Sherord Miller and Shaunci Osborne with conspiracy to engage in money laundering, based on their use of a bank safe deposit box to store and conceal profits from the sale of heroin.
Count 3 of the indictment charges Rayshawn Reed with knowingly and intentionally possessing with intent to distribute approximately 171 grams of heroin.
Count 4 of the indictment charges Reginald Bryant with felon-in-possession of a firearm.
Counts 5-42 of the indictment charge each defendant with using a communications facility (a telephone) to facilitate a drug trafficking offense.
“This group is accused of bringing piles of heroin into Ashtabula, which directly resulted in the death of a young woman,” Dettelbach said.
“Heroin abuse in Ohio and across the country is on the rise, and it is directly responsible for hundreds of overdose deaths every year,” Corso said. “This indictment illustrates that the DEA and our law enforcement partners will continue to aggressively target those individuals that choose to sell heroin in our communities, with total disregard for human life.”
Anthony added: “In the past 2 ½ years, collaborative law enforcement initiatives have resulted in the indictment of more than 40 individuals responsible for dangerous illegal drugs in the Ashtabula area, 13 of those being responsible for heroin distribution and taken into custody today. The FBI, through partnerships with state, local and federal agencies will continue efforts to dismantle drug trafficking organizations that bring danger to our residents.”
Law enforcement personnel seized heroin, firearms and more than $320,000 in U.S. currency during the year-long investigation. The indictment also seeks the forfeiture of five vehicles used as part of the conspiracy: a 2004 Chevrolet Suburban, a 2004 Cadillac CTS, a 2002 Cadillac Escalade, a 2004 BMW 745Li and a 1976 Oldsmobile Cutlass.
The indictment alleges that from March 2012 to August 15, 2012, defendant Rayshawn Reed arranged for multiple kilogram quantities of heroin to be brought into Northeast Ohio from the Chicago area.
The heroin was then distributed to co-conspirators in Ashtabula, including Sherord Miller and Jamarce Miller. Sherord Miller and Jamarce Miller then resold the heroin to other co-conspirators, including defendants Amanda Loving, Isaac Hawkins, Louis Snyder, James Robinson, Tricia Lewis, Joey Schmeisser, and Kevin Fridrich, and to heroin users. Defendants Shaunci Osborne and Laketha Harris helped Sherord Miller sell and distribute heroin, and that Reginald Bryant furnished heroin to the co-conspirators during periods when shortages occurred, according to the indictment.The indictment further alleges that heroin from the conspiracy which had been distributed by Jamarce Miller resulted in the fatal heroin overdose of an Ashtabula-area resident on or about July 7, 2012.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal records, if any, their role in the offenses, and the characteristics of the violations. In all cases the sentences will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorneys Joseph P. Schmitz and Vasile C. Katsaros following a one-year investigation. It was conducted by agents of the U.S. Drug Enforcement Administration and the Federal Bureau of Investigation, with assistance from the Ashtabula County Sheriff’s Office, the Ashtabula Police Department, the Trumbull/Ashtabula Group Task Force (TAG), the Ohio Bureau of Criminal Identification and Investigation (BCI), the Cuyahoga County Sheriff’s Office and the Ohio State Highway Patrol.
An indictment is only is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
St. Paul Man Sentenced for Filing False Insurance Claim for Purportedly Stolen ArtRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 39-year-old St. Paul man was sentenced for filing a false insurance claim for $250,000. United States District Court Judge Susan Richard Nelson sentenced Jason William Sheedy to three years of probation on one count of wire fraud in connection to this incident. In addition, Sheedy must pay $352,539.58 in restitution and serve 500 hours of community service. He was charged on August 6, 2012, and pleaded guilty on August 17, 2012.
In his plea agreement, Sheedy admitted that between September 2007 and December 2011, he devised a scheme to defraud the AXA Art Insurance Corporation (“AXA”). AXA is an insurance company that insures artwork and items of historical value.
In September of 2007, Sheedy insured several items, including artwork, with AXA. Then, on September 27, 2007, he filed an insurance claim for $274,905 with the company, reporting that some of the insured pieces, including several works of art, had been stolen from a moving van. On January 28, 2008, pursuant to that claim, AXA mailed Sheedy a check for $254,832. On May 24, 2011, however, Sheedy listed six of the reportedly stolen paintings on Artbrokerage.com, an Internet website for a Nevada auction house. A December 2011 search of Sheedy’s residence yielded all but one of the art pieces reportedly stolen.Sheedy further admitted filing a false claim with the Farmer’s Insurance Company in September 2007. That claim was purportedly for stolen household items, valued at $93,302, that were, in fact, not stolen. The insurance company paid the claim on February 12, 2008.
This case was the result of an investigation by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorneys Lola Velazquez-Aguilu and Benjamin F. Langner.Southampton Man Sentenced for Marijuana and Money LaunderingRead the Press Release
BOSTON - A Southampton man was sentenced today in U.S. District Court in Springfield for growing marijuana and laundering the profits.
Gregory Krzanowski, 39, was sentenced by U.S. District Judge Michael A. Ponsor to three years of probation, a $2,500 fine and forfeiture of $300,000. In October 2012, Krzanowski pleaded guilty to possession with intent to distribute marijuana and three counts of money laundering.In August 2011, Krzanowski operated an indoor marijuana grow house. On three dates in 2009, Krzanowski made cash deposits of the proceeds from this marijuana business into the bank account which was in the name of another legitimate business that he operated.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Alex J. Grant of Ortiz’s Springfield Branch Unit.
Rocky and Leon Houston Arrested for Federal Firearms ViolationsRead the Press Release
KNOXVILLE, Tenn. – On Friday, January 11, 2013, brothers Rocky Houston, 52, and Leon Houston, 54, both of Ten Mile, Tenn., were arrested on federal firearms charges. Agents and officers from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Roane County Sheriff's Office, and other local law enforcement agencies executed arrest and search warrants at the Houston family property located in Roane County, Tenn., announced William C. (Bill) Killian, U.S. Attorney for the Eastern District of Tennessee, Carl Vasilko, Acting Special Agent in Charge, ATF, and Jack Stockton, Sheriff of Roane County.
Rocky Houston has been charged with being a convicted felon in possession of firearms, and Leon Houston has been charged with possession of firearms while being an unlawful user of controlled substances. Upon conviction, each faces up to 10 years in prison and a fine of up to $250,000. Both will appear before a U.S. Magistrate Judge on Monday, January 14, 2013, for an Initial Appearance on the charges which have been lodged against them. Rocky Houston will appear at 10:30 a.m., and Leon Houston will appear at 3:00 p.m., before the Honorable Bruce Guyton, U.S. Magistrate Judge.
U.S. Attorney Bill Killian expressed his appreciation to the agents of ATF and the officers from the Roane, Knox and Loudon County Sheriffs' Offices for their participation in the successful execution of these warrants. “Our commitment of cooperation and support from our federal law enforcement agencies to our state and local colleagues is strong. It will remain so," said U.S. Attorney Killian.
Members of the public are reminded that these are only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Rochester Man Pleads Guilty in Child Pornography CaseRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Douglas C. Tatner, II, 33, of Rochester, N.Y., pleaded guilty to possession of child pornography before U. S. District Judge David G. Larimer. The charge carries a maximum penalty of 10 years in prison, and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that a search warrant was executed at Tatner's former residence on Glide Street in Rochester by members of the FBI's Cyber Crimes Task Force in January 2012. The search warrant followed a report from a witness who saw images of child pornography depicting children between the ages of 3 to 12 on the defendant's computer. Tatner admitted to possessing the images of child pornography, including images depicting pre-pubescent minors.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea is the culmination of an investigation on the part of the FBI's Cyber Crimes Task Force, under the direction of Special Agent in Charge Christopher M. Piehota. The task force includes the Rochester Police Department, under the direction of Chief James Sheppard.
Sentencing is scheduled for May 6, 2013 at 9:30 a.m. before Judge David G. Larimer
Pine Ridge Man Indicted for EscapeRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge man has been indicted by a federal grand jury for leaving the Community Alternatives of the Black Hills on December 15, 2012, and not returning.
Abraham Yellow Horse, age 24, was indicted by a federal grand jury on January 8, 2013, for Escape from Custody. Yellow Horse appeared before United States Magistrate Judge Veronica L. Duffy on January 9, 2013, and pled not guilty to the indictment. The maximum penalty upon conviction is 5 years of imprisonment and a $250,000 fine.
The charge is merely an accusation, and Yellow Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the United States Marshal’s Service. Assistant United States Attorney Eric Kelderman is prosecuting the case. Yellow Horse was remanded to the custody of the United States Marshal. A trial date has not yet been set.
Philadelphia Man Pleads Guilty to Airport HoaxRead the Press Release
PHILADELPHIA - Kenneth W. Smith, Jr., 26, of Philadelphia, PA, pleaded guilty in federal court today in connection with a hoax called in to authorities, on September 6, 2012, about explosives on an aircraft. Smith was charged with and pleaded guilty to malicious false information about an explosive, and false information and hoaxes. U.S. District Court Judge Gene E.K. Pratter scheduled a sentencing hearing for April 16, 2013. On September 6, 2012, Smith placed a telephone call to the Philadelphia Airport Police reporting that someone had allegedly carried an explosive substance onto an aircraft bound for Dallas-Ft. Worth Airport when Smith knew the statement was false. The report resulted in the flight being turned around and brought back to Philadelphia. Smith admitted he told police that an individual had carried liquid explosives onto the plane and that he targeted that individual in order to “avenge” a female.
Smith faces a maximum possible sentence of 15 years in prison, a fine of up to $500,000, special assessments, supervised release and restitution for the costs associated with the crimes. He has agreed to write a letter of apology to every passenger on board the flight, to reimburse the costs of emergency response, and to pay restitution to his victimsThe case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, the Philadelphia Police Department, the Transportation Security Administration, and the U.S. Department of Transportation Office of Inspector General. It is being prosecuted by Assistant United States Attorney Jennifer Arbittier Williams.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Perry County Man Arraigned on Drug ChargeRead the Press Release
A Perry County man made his initial appearance in federal court on January 7, 2013, on a one-count superseding indictment charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Henry D. Jacquez, 35, of Cutler, was charged, along with seven others, in a one-count superseding indictment charging conspiracy to manufacture methamphetamine. The offense is alleged to have occurred between November, 2011 and October 12, 2012 in Perry, Jackson and Randolph Counties. Upon conviction, the offense carries a penalty of up to 20 years in prison, at least 3 years of supervised release, and a fine of up to $1,000,000. At a January 10, 2013, detention hearing, Jacquez was ordered held without bond, pending a March 11, 2013, jury trial.
Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Randolph County Sheriff’s Office, Perry County Sheriff’s Office, the Percy Police Department, the Murphysboro Police Department, the Sparta Police Department and the Drug Enforcement Administration. The United States Marshals Service has also assisted during the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Pamlico Drug Dealers Receive Federal Prison SentencesRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker and District Attorney Scott Thomas announced today that two drug dealers from Pamlico County were sentenced in federal court last week. DON ELBERT LEWIS, 57 of Bayboro, NC and WILLIAM JERRY WARREN III, 24 of Grantsboro, NC were eachsentenced as a result of unrelated investigations carried out by the Pamlico County Sheriff’s Office.
According to Mr. Walker, “These prosecutions demonstrate our continued battle to rid communities from the scourge of drug traffickers who negatively impact the quality of life for law abiding citizens.”
On January 10, 2012 LEWIS was sentenced to fifteen years imprisonment followed by five years of supervised release after pleading guilty to conspiring to distribute and possess with the intent to distribute 280 grams or more of cocaine base (crack), and five kilograms or more of cocaine. According to the investigation, on several occasions deputies from the Pamlico County Sheriff’s Office utilized an informant to purchase cocaine base (crack) from LEWIS and others at his residence on Garrison Lane in Bayboro. Further investigation revealed that LEWIS allowed his residence to be used by prostitutes as well as by other drug dealers to process and sell narcotics in exchange for either drugs or proceeds from the prostitution and drug sales. The investigation revealed that in total, over 14 kilograms of cocaine and cocaine base (crack) were either processed or sold from LEWIS’ residence.
On January 11, 2013, WARREN was sentenced to 63 months imprisonment followed by 3 years of supervised release after pleading guilty to distributing cocaine base (crack) and to possessing a firearm after being convicted of a felony criminal offense. According to the investigation, deputies from the Pamlico County Sheriff’s Office utilized an informant to purchase crack from WARREN in Reelsboro, NC. At a later date, a concerned citizen gave a tip to a deputy of the Pamlico County Sheriff’s Office that WARREN was occupying a vehicle nearby and was in possession of a firearm. Upon being approached, WARREN exited the vehicle and attempted to leave the scene. After he was stopped, WARREN resisted a frisk by the sheriff’s deputy and during a struggle with the officer, kicked a .45 caliber handgun underneath the deputy’s patrol car. After WARREN was taken into custody, bystanders who observed the struggle informed the deputy that they had seen WARREN attempt to rid himself of the weapon during the struggle.
LEWIS and WARREN were also ordered to pay restitution to the Pamlico County Sheriff’s Office. LEWIS was ordered to pay $1,520.00 and WARREN was ordered to pay $250.00. If they are unable to pay immediately, they must participate in the Inmate Responsibility Program to work and pay the restitution while incarcerated.
District Attorney Thomas said, “This investigation is part of our ongoing efforts to fight illegal drug activity in our area. The Pamlico County Sheriff’s Department did a good job investigating this case and working with Prosecutor Gus Willis to achieve convictions and prison sentences. We will continue to pursue investigations and prosecutions to address drugs and other illegal activity.”
Special Assistant United States Attorney Augustus Willis represented the government in these cases. Mr. Willis is a prosecutor with the District 3-B District Attorney’s Office encompassing Carteret, Craven and Pamlico Counties. District Attorney Scott Thomas has assigned him to the United States Attorney’s Offices to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Willis’ position is funded through a grant provided by the Governor’s Crime Commission.
Owner of Kentucky Pain Clinics Arrested and Indicted for Prescription Drug and Money Laundering ConspiraciesRead the Press Release
LEXINGTON, KY - A federal indictment, unsealed today, accuses a pain clinic owner and his two businesses of illegally distributing prescription drugs in central and northern Kentucky.
Ernest William Singleton, 44, was arrested in his hometown of Springfield, KY., this morning on federal charges.
Singleton and his businesses, Double D Holdings, LLC, and S & R Medical Enterprises, LLC, which previously did business under the names Central Kentucky Bariatric and Pain Management (Georgetown, Ky.) and Grant County Wellness Clinic, (Dry Ridge, Ky.) are charged with conspiracy to distribute oxycodone and conspiracy to launder funds from October 2010 until January 2013.
In addition, the U.S. Government seeks forfeiture of farm land, vehicles, businesses, and other property that were purchased with illegal profits or used to facilitate the alleged crimes.
A federal grand jury in Lexington returned the sealed indictment on January 10.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Robert L. Corso, Special Agent in Charge, Drug Enforcement Administration, Christopher A. Henry, Special Agent in Charge of IRS, Criminal Investigation Division, Jack Conway, Kentucky Attorney General, and Rodney Brewer, Commissioner of Kentucky State Police, jointly announced the arrest and the charges.
The investigation was conducted by the DEA, the IRS’ Criminal Investigation Division, the Kentucky Attorney General’s Office and Kentucky State Police. Assistant U.S. Attorney Ron Walker represents the U.S. Attorney’s Office in this case.
“Illegal pill mills have fueled the prescription drug epidemic in Kentucky that now kills more people than traffic accidents,” General Conway said. “I appreciate the hard work of my Drug Branch Investigators, working in coordination with our state and federal law enforcement partners, in bringing this case forward.”
A date for Singleton to appear in Federal Court has not yet been set. If convicted he faces a maximum of 20 years in prison on each count. However, any sentence following a conviction would come after the Court considers the U.S. Sentencing Guidelines and the federal statutes.
The indictment of a person by a grand jury is an accusation only, and that person is presumed innocent unless proven guilty.
North Side Man Pleads Guilty to Federal Drug Law ViolationRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pa., pleaded guilty in federal court to a charge of violating federal narcotic laws, United States Attorney David J. Hickton announced today.
Jimmie McLaughlin, 36, pleaded guilty to one count before Senior United States District Judge Maurice B. Cohill.
In connection with the guilty plea, the court was advised that on or about July 8, 2011, in the Western District of Pennsylvania, McLaughlin possessed with intent to distribute between 80 and 100 grams of heroin.
Judge Cohill scheduled sentencing for May 15, 2013. The law provides for a total sentence of not less than 10 years and up to life in prison, a fine of $4,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Jonathan B. Ortiz is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Robinson Township Police conducted the investigation that led to the prosecution of Jimmie McLaughlin.
New York Woman Pleads Guilty to Casino ScamRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA - A 29-year old Jamaica, New York, resident entered a plea of guilty in United States District Court in Martinsburg after fraudulently obtaining cash at the Hollywood Casino in Charles Town, West Virginia.
United States Attorney William J. Ihlenfeld, II, announced that REBECCA HILL entered a plea of guilty to “Use of a Counterfeit Access Device” at the casino in Charles Town when HILL, in 2010, presented photographic identification along with a counterfeit credit card in order to obtain a cash advance of $1,000. As part of her plea, HILL is required to make restitution in the amount of $31,000 to the casino. HILL, who is on bond pending sentencing, faces up to 10 years imprisonment and a fine of $250,000.
The case was prosecuted by Assistant United States Attorney Thomas O. Mucklow and was investigated by the West Virginia State Police and United States Secret Service.
Mobridge Woman Indicted for EscapeRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mobridge, South Dakota, woman has been indicted by a federal grand jury for leaving the Community Alternatives of the Black Hills on December 15, 2012, and not returning.
Camille Touche, age 26, was indicted by a federal grand jury on January 8, 2013, for Escape from Custody. Touche appeared before United States Magistrate Judge Veronica L. Duffy on January 9, 2013, and pled not guilty to the indictment. The maximum penalty upon conviction is 5 years of imprisonment and a $250,000 fine. The charge is merely an accusation, and Touche is presumed innocent until and unless proven guilty.
The investigation is being conducted by the United States Marshal’s Service. Assistant United States Attorney Eric Kelderman is prosecuting the case. Touche was remanded to the custody of the United States Marshal. A trial date has not yet been set.
Minneapolis Man Pleads Guilty to Bank RobberyRead the Press Release
MINNEAPOLIS—Late last week in federal court, a 51-year-old Minneapolis man pleaded guilty to robbing the TCF Bank on West Lake Street in Minneapolis. He also admitted robbing three other banks. On January 11, 2013, Phillip Leo Nietz specifically pleaded guilty to one count of bank robbery. Nietz, who was indicted on October 10, 2012, entered his plea before United States District Court Judge Patrick J. Schiltz.
In his plea agreement, Nietz admitted that on August 22, 2012, he walked into the West Lake Street branch of TCF Bank and gave a teller a note demanding money. He took approximately $3,794, placed it in a black bag, and left the premises on foot. Nietz also admitted robbing three other banks in the same manner: a U.S. Bank in Roseville on August 14, 2012 ($1,047); a Wells Fargo in St. Paul on August 28, 2012 ($7,389); and a U.S. Bank in St. Paul on September 13, 2012 ($1,045).
For his crime, Nietz faces a potential maximum penalty of 20 years in prison. Judge Schiltz will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.Mesquite Man Sentenced to 40 Months in Federal Prison for Possessing Child PornographyRead the Press Release
Defendant Had More than 3000 Images and Eight Videos of Child Porn
DALLAS — Christopher Vernon George, 41, of Mesquite, Texas, was sentenced this morning by U.S. District Judge David C. Godbey to 40 months in federal prison and a 10-year term of supervised release, following his guilty plea in October 2012 to an Information charging one count of possession of child pornography. George was ordered to surrender to the Bureau of Prisons on March 4, 2013.
During an investigation involving the website, “liberalmorality.com,” which offered sexually explicit images of videos of minor children for download, investigators were able to identify an IP address associated with George. A state search warrant was executed at George’s residence, which at the time was in Garland, Texas, by agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and officers of the Garland Police Department. Investigators seized George’s computer and external storage media.
George admitted that he had been downloading and viewing child pornography for 15 years. A forensic analysis of the items seized identified more than 3000 images and eight videos of child pornography that George had downloaded from the Internet.
This matter was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc For more information about internet safety education, please visit www.justice.gov/psc and click on the tab "resources."
ICE HSI and the Garland Police Department investigated. Assistant U.S. Attorney Camille Sparks was in charge of the prosecution.
Manderson Man Indicted for Stealing Pickup TruckRead the Press Release
United States Attorney Brendan V. Johnson announced that a Manderson man has been indicted by a federal grand jury for allegedly stealing a 2004 Chevrolet Silverado pickup truck from the Pine Ridge area on January 13, 2012, and transporting it across the state line.
Clayton Fire Thunder, age 28, was indicted by a federal grand jury on March 20, 2012, for Larceny and Interstate Transportation of Stolen Motor Vehicle. Fire Thunder appeared before United States Magistrate Judge Veronica L. Duffy on January 9, 2013, and pled not guilty to the indictment. The maximum penalty upon conviction is 10 years of imprisonment and a $250,000 fine.
The charges are merely accusations, and Fire Thunder is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant United States Attorney Eric Kelderman is prosecuting the case. Fire Thunder was remanded to the custody of the United States Marshal. A trial date has been set for March 19, 2013.
Los Angeles Check Cashing Store, Its Head Manager and Compliance Officer Sentenced for Violating Anti-money Laundering LawsRead the Press Release
WASHINGTON – A Los Angeles check cashing store, its head manager and its designated anti-money laundering compliance officer were sentenced today in the Central District of California for failing to follow reporting and anti-money laundering requirements for over $8 million in transactions in violation of the Bank Secrecy Act (BSA), announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney for the Central District of California André Birotte Jr; Assistant Director in Charge Bill L. Lewis of the FBI Los Angeles Division; Chief of the Internal Revenue Service Criminal Investigation (IRS-CI) Richard Weber; and Glenn R. Ferry, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Los Angeles region.
G&A Check Cashing, its manager, Karen Gasparian, and its compliance officer, Humberto Sanchez, were sentenced today by Judge John F. Walter in the Central District of California. Judge Walter sentenced Gasparian to serve 60 months in prison and two years of supervised release. Sanchez was sentenced to serve eight months in prison and two years of supervised release. And G&A was ordered to pay a fine of $962,932 and sentenced to two years probation. In addition, Gasparian and G&A were ordered to forfeit $240,733 related to the funds going through G&A for which currency transaction reports (CTRs) should have been filed.
“Karen Gasparian, Humberto Sanchez and their company G&A Check Cashing purposefully thwarted the Bank Secrecy Act, making it easier for others to use G&A to commit illegal activity,” said Assistant Attorney General Breuer. “They knew they were required to report transactions over $10,000, but deliberately failed to do so. As this case shows, check cashing businesses must adhere to our anti-money laundering rules, or else pay the consequences.”
On Oct. 2, 2012, G&A, a financial institution located in Los Angeles, pleaded guilty to one count of conspiring to fail to file CTRs and one count of failing to have an effective anti-money laundering program. On Sept. 20, 2012, Gasparian, 31, of Canyon Country, Calif., pleaded guilty to the same charges. On Oct. 2, 2012, Sanchez, 51, of Alhambra, Calif., pleaded guilty to one count of failing to have an effective anti-money laundering program (AML).
The BSA is a set of laws and regulations enacted by Congress to address an increase in criminal money laundering through financial institutions, which includes check cashing businesses. Check cashers enable people to cash checks without having to go to a bank or maintain a bank account. A check casher will typically charge a fee for this service.
Under the BSA, financial institutions, including check cashers, are required to file a CTR with the Department of Treasury for any transaction involving more than $10,000 in currency. As part of the CTR, the check casher is required to verify and accurately record the name and address of the individual who conducted the currency transaction, the individual on whose behalf the transaction was conducted, as well as the amount and date of the transaction. CTRs are important law enforcement tools for uncovering criminal activity.
The BSA also requires financial institutions, including check cashing businesses, to maintain an effective AML program. The purpose of an AML program is to effectively detect and prevent attempts to facilitate money laundering. Check-cashing businesses are therefore required to have written policies and procedures regarding CTR filings, records maintenance and responses to law enforcement.
In failing to have an effective anti-money laundering program, G&A, Gasparian and Sanchez failed to, among other things, create or retain required records, verify customer identification and file required reports such as CTRs. As a result, G&A and Gasparian engaged in multiple transactions involving $8,024,446, in which required CTRs were not filed.
As court documents filed in this case indicate, check-cashing businesses are a common venue for individuals who want to anonymously cash large numbers of checks to facilitate fraud and money laundering schemes, precisely because they often fail to file required reports and to have effective anti-money laundering programs. According to the indictments, the use of check cashers to launder money is particularly prevalent in the area of health care fraud, where fraudulent health care businesses commonly convert the proceeds of their fraud into cash by presenting checks to check cashers who they know will not ask for proof of the payee’s identity and will either not file CTRs or file false CTRs.
“IRS-CI will take all necessary steps to identify, investigate and prosecute those who attempt to avoid their reporting obligations under the law,” said IRS-CI Chief Weber. “This joint effort continues to demonstrate our efforts to ensure that the financial services industry will not be used for personal financial gain and will be operated in a fair and honest manner to promote the public interest.”
“Check cashing businesses and other financial institutions that enable healthcare fraud will pay a heavy price,” said HHS-OIG Special Agent in Charge Ferry. “We will use sophisticated computer analytics as well as traditional investigative techniques to bring these criminals to justice.”
On Nov. 7, 2012, Aaron Krkasharyan, 48, of Los Angeles, pleaded guilty in a related case for making false statements to federal law enforcement officials investigating BSA violations at G&A. On Jan. 7, 2013, Judge Walter sentenced Krkasharyan to three years probation, which included a six-month term in a residential reentry center, and a $10,000 fine.The indictment filed in this case was one of four indictments, unsealed on June 14, 2012, that charged several individuals and check cashing businesses in Los Angeles, Brooklyn, N.Y., and Philadelphia with failing to file CTRs or falsely filing CTRs as well as failing to have effective AML programs.
In another Los Angeles case included in this widespread prosecution, AAA Cash Advance and its manager, Diana Brigitt, pleaded guilty on Sept. 19, 2012, in the Central District of California to various BSA violations. Brigitt pleaded guilty to eight counts of failing to file CTRs and one count of failing to maintain an effective anti-money laundering program. AAA pleaded guilty to one count of failing to maintain an effective AML program. On Oct. 15, 2012, AAA was sentenced to a statutory maximum term of five years probation and was also ordered to pay a fine. At sentencing, AAA also agreed to shut down its business permanently once its fine was paid. At sentencing, Brigitt faces a statutory maximum sentence of 45 years in prison and a fine of $2.25 million.
The cases announced today are being prosecuted by Money Laundering and Bank Integrity Unit Trial Attorneys Kevin Mosley and Matthew Klecka of the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS), AFMLS Forfeiture Unit Acting Assistant Deputy Chief Jeannette Gunderson and Trial Attorney Anand Sithian and Assistant U.S. Attorney David L. Kirman of the Central District of California. The department acknowledges the invaluable assistance of the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN).
The Money Laundering and Bank Integrity Unit investigates and prosecutes complex, multi-district and international criminal cases involving financial institutions and individuals who violate the money laundering statutes, the Bank Secrecy Act and other related statutes. The unit’s prosecutions generally focus on three types of violators: financial institutions, including their officers, managers and employees, whose actions threaten the integrity of the individual institution or the wider financial system; professional money launderers and gatekeepers who provide their services to serious criminal organizations; and individuals and entities engaged in using the latest and most sophisticated money laundering techniques and tools.
The cases are being investigated by agents from the FBI, IRS-CI and HHS-OIG.
Los Angeles Check Cashing Store, Head Manager and Compliance Officer Sentenced for Violating Anti-Money Laundering LawsRead the Press Release
Sentences Handed Down in Enforcement Initiative Aimed at Check Cashers that Violated the Bank Secrecy Act
LOS ANGELES – A Los Angeles check cashing store, its head manager and its designated anti-money laundering compliance officer were sentenced today for failing to follow federal reporting and anti-money laundering requirements in relation to more than $8 million in transactions.
G&A Check Cashing, a business located in the Westlake section of Los Angeles; its manager, Karen Gasparian; and its compliance officer, Humberto Sanchez, were sentenced today by United States District Judge John F. Walter for violating the Bank Secrecy Act (BSA).
Judge Walter sentenced Gasparian, 31, of Canyon Country, to five years in federal prison. In sentencing Gasparian, Judge Walter rejected the defendant’s arguments that he had simply failed to comply with complicated regulatory schemes. “It’s obvious he knew exactly what he was doing – laundering money,” Judge Walter said.
Sanchez, 51, of Alhambra, was sentenced to eight months in prison. And G&A was ordered to pay a fine of $962,932 as part of two-year period of probation. In addition, Gasparian and G&A were ordered to forfeit $240,733, which represents the profits they earned on funds going through G&A for which currency transaction reports (CTRs) were not filed.
G&A pleaded guilty in October to one count of conspiring to fail to file CTRs on transand one count of failing to have an effective anti-money laundering program. Gasparian pleaded guilty in September to the same charges. Sanchez pleaded guilty in October to one count of failing to have an effective anti-money laundering program.
The BSA is a set of laws and regulations enacted by Congress to address an increase in criminal money laundering through financial institutions, which includes check cashing businesses. Check cashers enable people to cash checks without having to go to a bank or maintain a bank account.
Under the BSA, financial institutions, including check cashers, are required to file a CTR with the Department of Treasury for any transaction involving more than $10,000 in currency. As part of the CTR, the check casher is required to verify and accurately record the name and address of the individual who conducted the currency transaction, the individual on whose behalf the transaction was conducted, as well as the amount and date of the transaction. CTRs are important law enforcement tools for uncovering criminal activity.
The BSA also requires financial institutions, including check cashing businesses, to maintain an effective anti-money laundering program. Check-cashing businesses are required to have written policies and procedures regarding CTR filings, records maintenance and responses to law enforcement.
G&A, Gasparian and Sanchez failed to, among other things, create or retain required records, verify customer identification and file required reports such as CTRs. As a result, G&A and Gasparian engaged in multiple transactions involving $8,024,446, in which required CTRs were not filed.
According to court documents, check-cashing businesses are a common venue for individuals who want to anonymously cash large numbers of checks to facilitate fraud and money laundering schemes, precisely because they often fail to file required reports and to have effective anti-money laundering programs. The use of check cashers to launder money is particularly prevalent in the area of health care fraud, where fraudulent health care businesses commonly convert the proceeds of their fraud into cash by presenting checks to check cashers who they know will not ask for proof of the identity and will either not file CTRs or file false CTRs, according to the documents.
Aaron Krkasharyan, 48, of Los Angeles, pleaded guilty last year in a related case for making false statements to federal law enforcement officials investigating BSA violations at G&A. Last Monday, Judge Walter sentenced Krkasharyan to three years probation, which included a six-month term in a residential reentry center, and ordered him to pay a $10,000 fine.
The indictment filed in the G&A case was one of four indictments unsealed on June 14, 2012, that charged several individuals and check cashing businesses in Los Angeles, Brooklyn and Philadelphia with failing to file CTRs or falsely filing CTRs, as well as failing to have effective AML programs.
In another Los Angeles case included in this prosecution, AAA Cash Advance and its manager, Diana Brigitt, pleaded guilty in federal court in Los Angeles last September to various BSA violations. Brigitt pleaded guilty to eight counts of failing to file CTRs and one count of failing to maintain an effective anti-money laundering program. AAA pleaded guilty to one count of failing to maintain an effective anti-money laundering program. AAA, which agreed to shut down, was sentenced in October to a statutory maximum term of five years probation and was also ordered to pay a fine. At sentencing later this year, Brigitt faces a statutory maximum sentence of 45 years in prison and a fine of $2.25 million.
The G&A case was prosecuted by the United States Attorney’s Office in Los Angeles and the Money Laundering and Bank Integrity Unit of the Justice Department’s Asset Forfeiture and Money Laundering Section.
The case was investigated by the Federal Bureau of Investigation, IRS Criminal Investigation and the U.S. Department of Health and Human Services’ Office of Inspector General (Los Angeles region). The Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) provided substantial assistance.
Release No. 13-008
Leader of Azusa Street Gang Involved in Drug Trafficking and Hate Crimes Targeting African-Americans Sentenced to Nearly 20 YearsRead the Press Release
LOS ANGELES – A “keyholder” who oversaw the criminal activities of the Azusa 13 street gang and its long-running plot to violate the civil rights of African-Americans in the City of Azusa was sentenced late this afternoon to 235 months in federal prison
Santiago Rios, also known as “Chico,” 48, was sentenced this afternoon by United States District Judge Gary A. Feess.
Rios was the lead defendant in a federal racketeering indictment that targeted the Azusa 13 criminal enterprise. In June 2011, a federal grand jury returned a 24-count indictment that charged a total of 51 defendants with a host of crimes, including conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act (RICO) and conspiracy to violate the civil rights of African-Americans. Rios, who was the keyholder – or ultimate leader – of the gang in 2008 and 2009, pleaded guilty in May 2012 to both conspiracy charges.
“The sentencing of the gang’s ‘keyholder’ is another giant step forward for the residents of an area who lived for too long under the specter of gang violence and racial animosity,” said United States Attorney André Birotte Jr. “Together with the Azusa Police Department and our partners in federal law enforcement, we took action to protect the civil rights of all the residents of Asuza, and we will continue to aggressively defend those rights, and those residents, from harm.”
In the early 1990s, the Azusa 13 gang adopted a racist principle “that members of the gang will harass and use violence to drive African-Americans out of the City of Azusa and would use violence in order to prevent African-Americans from moving into the City,” according to the indictment. When he pleaded guilty, Rios admitted that the gang had the goal of the cleansing Azusa of African-Americans. Rios also admitted that, in order to drive African-Americans out of the city, he and other members of the gang threatened, intimidated and attacked African-Americans at their residences, on the streets, at convenience stores and elsewhere, because of their race.
Rios confirmed in court that members of the Azusa 13 gang “tagged” racial slurs, including the “n-word,” on street signs, walls and buildings to intimidate law-abiding African-Americans in Azusa. In relation to the gang’s goal of cleansing the City of Azusa of African-Americans, Rios said that newly recruited members of the gang, often using dangerous weapons, participated in attacks on African-Americans as a way of proving themselves as members of the gang and to enhance their position in the gang.
Six of the defendants named in the indictment, including Rios, were charged in and pleaded guilty to the civil rights conspiracy, which alleged a series of incidents in which African-Americans were harassed through racist graffiti and subjected to attacks that included beatings and robberies. The racist incidents alleged in the indictment spanned a period from 1992 until May 2010, when an African-American high school student was beaten as he walked home from school.
The other five defendants who pleaded guilty to the civil rights conspiracy and admitted the gang’s racist conduct were:
George Salazar, also known as “Danger,” 30, who also served as a “keyholder,” was sentenced by Judge Feess in August 2012 to 174 months in prison;Josue Alfaro, also known as “Negro,” 40, who is alleged to have also served as a “keyholder,” is scheduled to be sentenced by Judge Feess on February 25, at which time he faces a statutory maximum sentence of 30 years;
Raul Aguirre, also known as “Solo,” 36, was sentenced by Judge Feess in August 2012 to 102 months in prison;
Marty Michaels, also known as “Casper,” 32, who is scheduled to be sentenced on February 4, at which time he faces a sentence of up to 30 years; and
Manuel Jimenez, 21, who was sentenced this afternoon to 78 months in prison.
Of the 51 members and associates of the Azusa 13 gang charged in the indictment, 49 defendants have pleaded guilty to racketeering and narcotics charges (with six of the 49 also pleading guilty to the civil rights charge). There are two fugitives who are charged with being narcotics traffickers, but they are not alleged to have been members of the gang. In addition to the defendants who pleaded guilty in the civil rights conspiracy, several members of the Azusa 13 gang acknowledged participating in the gang’s racist conduct, including:
Anthony Moreno, also known as “Flaco,” 42, who received a sentence of 210 months from Judge Fees on November 19; and
Louie Rios, who is Santiago Rios’ son and is also known as “Lil’ Chico,” 22, who was sentenced today to 10 years in prison.
“This case stands out as a huge victory for the community, the victims that the gang targeted, and the Azusa Police Department,” said Azusa Police Chief Sam Gonzalez. “The investigation and today’s sentencings send a loud and clear message that hate and gang crimes will not be tolerated, and will be prosecuted to the fullest extent of the law. The Azusa Police Department remains committed to ensuring that all people are safe in the community, and we will continue to pursue all investigative avenues to make that a certainty. This case is an excellent example of how local and federal agencies can work together for the betterment of society.”
In addition to the RICO charge and the civil rights conspiracy count, the indictment alleges a long-running conspiracy to distribute narcotics, specifically heroin, methamphetamine and cocaine. The Azusa 13 gang developed a “business plan” that outlined methods by which the gang would control the narcotics business in Azusa, according to court documents. Under the business plan, members of Azusa 13 sought to “monopolize the entire drug market in the city of Azusa” through several means, including maintaining “top of the line artillery” and being prepared to kidnap relatives of wayward drug dealers.
Drug Enforcement Administration Special Agent in Charge Anthony D. Williams stated: “Today’s sentencing is an affirmative step to reducing the impact of gang violence and illegal drugs in the Azusa area. This task force investigation exemplifies the partnership between local, state and federal agencies in combating violent gang activities in our communities.”
As part of its narcotics operation, the gang extorted payments from street-level drug dealers in exchange for authorization to conduct business in Azusa 13 territory. Rios admitted that the Azusa 13 gang controlled the drug trafficking activity that occurred within the City of Azusa, and that members of the Azusa 13 gang would permit narcotics traffickers to distribute narcotics in exchange for a percentage of any narcotics proceeds that were generated in the gang’s territory. These payments of drug proceeds – known as “rent” or “tax” – were funneled to members of the Mexican Mafia who exerted control over the gang. According to Rios, members of the Azusa 13 gang would not permit a narcotics trafficker to distribute narcotics in the City of Azusa if that individual did not give a portion of their narcotics distribution proceeds to the gang.
N. Dawn Mertz, the Acting Special Agent in Charge of the Los Angeles Field Office of IRS Criminal Investigation (CI), commented: “The flow of money through the Azuza 13 Gang supported the gang structure and allowed it to thrive. IRS CI targeted the profit and financial gains by following the payments extorted from street-level drug dealers, payments known as “rent” or “tax.” IRS CI will continue to contribute our financial expertise to the investigation of gang organizations in an effort to bring their members to justice.”
The case against Azusa 13 is the result of an investigation that was conducted by the Los Angeles HIDTA Task Force, a federally funded group made up of federal and local law enforcement agencies, including the DEA and IRS Criminal Investigation. The Azusa Police Department worked in conjunction with the Task Force during this investigation, which started in early 2008.
While several federal indictments targeting Los Angeles-area gangs have made allegations of crimes against African-Americans, the case against Azusa 13 is the first in the history of the Department of Justice to use federal civil rights statutes in conjunction with federal racketeering and narcotics laws to address racist gang-related activity, and to successfully dismantle a violent criminal organization.
Release No. 13-007
Las Vegas Lawyer Pleads Guilty to Mortgage Fraud CrimesRead the Press Release
Las Vegas, Nev. – Las Vegas lawyer Gerry Zobrist pleaded guilty today to federal felony conspiracy and fraud charges for his involvement in a mortgage fraud scheme that caused federally insured financial institutions to suffer losses of more than $30 million, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
“The U.S. Attorney’s Office in Nevada continues to work with the FBI and other federal and state law enforcement partners, to investigate and prosecute mortgage fraud crime,” said U.S. Attorney Bogden. “Over the last several years, almost 200 persons have been charged with federal mortgage fraud crimes in Nevada, and most of those have been convicted and are serving federal prison sentences.”
Zobrist, 43, of Las Vegas, pleaded guilty before U.S. District Judge James C. Mahan to one count of conspiracy to commit bank fraud and wire fraud, and is scheduled to be sentenced on April 15, 2013, at 10:00 a.m. Zobrist faces up to 30 years in prison and a $1 million fine.
According to the plea agreement, from about June 2006 to May 2008, Zobrist and unnamed coconspirators solicited and paid persons with good credit ratings to serve as straw buyers to purchase homes in the Las Vegas area on behalf of Zobrist and the coconspirators. Zobrist and the coconspirators made offers to purchase the homes, and the sellers agreed to disburse part of the sales proceeds to real estate companies, coconspirators and third party entities controlled by Zobrist and the coconspirators under the pretense that the proceeds constituted attorney’s fees, marketing fees, commissions, and other fees. Zobrist and the coconspirators caused to be completed and submitted mortgage loan applications and supporting documents in the name of the straw buyers, which contained false and fraudulent information concerning the straw buyers’ income, assets, liabilities, intended occupancy status, and other things. Zobrist and the coconspirators also caused to be submitted to the lenders documents containing false information about the source of the down payments, value of the homes, and intended disbursements to Zobrist, the coconspirators, and straw buyers. Using this fraudulent scheme, Zobrist and the coconspirators purchased 144 homes and obtained mortgage loans for more than $53 million. Zobrist and the coconspirators defaulted on the mortgage loans causing the homes to go into foreclosure, and caused the financial institutions to suffer losses of at least $30 million.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys Daniel R. Schiess and Sarah E. Griswold.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Justice Department Settles Lawsuit Alleging Interference with <br /> Persons Exercising Right to Seek or Provide Reproductive <br /> Health CareRead the Press Release
WASHINGTON – The Department of Justice today settled a civil complaint against Richard A. Retta, of Rockville, Md, in the U.S. District Court for the District of Columbia, for violations of the Freedom of Access to Clinic Entrances (FACE) Act. The settlement permanently enjoins Retta from going inside the gated area in front of the entrance to the Planned Parenthood of Metropolitan Washington facility (PPMW) in Washington, D.C., and, during certain hours, from going within an additional 18.5 feet by six feet “buffer zone” directly outside the PPMW gate. Retta is further enjoined from violating, or directing or instructing others to violate, the FACE Act.
The complaint filed by the United States alleged that, on Jan. 8, 2011, inside the gated area in front of PPMW, Retta physically obstructed a patient attempting to enter PPMW and interfered with the rights of two volunteer escorts who were assisting the patient. The FACE Act prohibits the physical obstruction of any person providing or obtaining reproductive health services with the intent to intimidate or interfere with that person.
Early in the case, the court rejected the defendant’s motion to dismiss the lawsuit and held that, under FACE, the complaint need only allege that the defendant believed the individuals to be obtaining or providing reproductive health services, not that they were actually seeking or providing such services. This important ruling protects patient privacy, patients’ companions and volunteer escorts.
“While people have a First Amendment right to communicate their views and offer information, they do not have the right to prevent access to health care facilities,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “Individuals who seek to obtain or provide reproductive health services should be able to do so without physical interference by those who disagree with them.”This civil action was filed by the Civil Rights Division Special Litigation Section Deputy Chief Julie Abbate and Trial Attorneys Aaron Zisser and Michelle Leung.
Justice Department Obtains Judgment Against Maine Landlord for Sexually Harassing TenantsRead the Press Release
WASHINGTON – The Justice Department today announced that property manager Rudy Ferrante agreed to a $15,000 civil judgment against him, to resolve allegations that he sexually harassed female tenants in Portland, Maine. The department’s complaint alleged that Ferrante subjected his female tenants to unwanted sexual comments and touching, granted tangible housing benefits in exchange for sexual favors and took adverse actions against female tenants when they refused his sexual advances.The consent order, which is subject to approval by the U.S. District Court for the District of Maine, imposes a $15,000 civil penalty against Ferrante. In addition, the consent order enjoins him from further acts of discrimination, requires him to undergo fair housing training and requires that he provide a copy of the order to his employees and any property owner on whose behalf he manages units.
“The women involved in this case were subjected to intimidating and severe acts of sexual harassment in their homes, where they have a right to feel safe,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “This order sends the message that the Civil Rights Division does not tolerate such conduct and will enforce the right to equal access to housing when it learns of violations of the Fair Housing Act.”
The department began investigating Ferrante after Pine Tree Legal Assistance, a Portland-based legal aid organization, notified the department of sexual harassment complaints it had received about Ferrante.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. Individuals who believe that they may have been victims of housing discrimination should call the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743, email [email protected] or contact the U.S. Department of Housing and Urban Development at 1-800-669-9777.
Fair housing enforcement is a priority of the Civil Rights Division. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
Jerseyville Man Sentenced for Making False Bank Entry to Conceal Cash TheftsRead the Press Release
A Jerseyville man, convicted of Making a False Bank Entry, was sentenced in federal court on January 14, 2013, to 30 days of imprisonment, 11 months of home confinement with electronic monitoring, and 3 years of supervised release, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
At his plea on August 22, 2011, Robert J. Tonsor, 29, of Jerseyville, IL, admitted that while employed by the Carrollton Bank he had made false entries on the bank’s Alton Drive Up Vault Balance Sheet. Tonsor admitted making the false entries in order to conceal his theft of funds and deceive the officers of the Carrollton Bank by making the records falsely indicate that the bank’s drive up window vault was properly balanced, when Tonsor knew that there were shortages of approximately $105,000 in United States currency.
As part of the plea agreement with the government, Tonsor had already paid $105,000 in restitution to the Bank of Carrollton. He was also ordered to pay a special assessment of $100.00.
The investigation was conducted by the Federal Deposit Insurance Corporation - Office of Inspector General and is being prosecuted by Assistant United States Attorney Ranley R. Killian.
International Hedge Fund Founder Sentenced to 12 Years in Prison for Investment FraudRead the Press Release
SAN JOSE, Calif. – An international hedge fund founder was sentenced today to 12 years in prison for wire fraud arising out of a white collar investment fraud scheme that defrauded multiple investors out of millions of dollars, United States Attorney Melinda Haag announced.
Following a three week trial, a federal jury on June 20, 2012, convicted Albert Ke-Jeng Hu, 51, formerly of Fremont, Calif., and Hong Kong, of seven counts of wire fraud in violation of Title 18, United States Code, Section 1343. Evidence at trial showed that Hu carried out an investment fraud scheme from 2002 to 2008 that defrauded multiple investors of millions of dollars. Hu founded and operated hedge funds under the names Asenqua Beta Fund and Fireside LS Fund out of locations in San Francisco, Sunnyvale and Singapore. Hu lied to investors by telling them that he had more than $200 million in his hedge funds and that they would receive rates of return as high as 20 to 30 percent a year. Hu also lied about entities that were supposedly affiliated with his hedge funds, such as a prominent law firm, an auditing firm, a hedge fund administrator and a chief financial officer. In reality, none of those entities ever had any connection with Hu’s hedge funds. Evidence at trial showed that Hu targeted prominent members of the Chinese-American business community in Silicon Valley as part of his investment fraud scheme. Ultimately, Hu invested virtually none of his investors’ money, instead diverting it to pay his own personal expenses as well as prior investors and others.
In sentencing Hu, U.S. District Court Judge Ronald M. Whyte emphasized the sophistication of Hu’s fraudulent scheme that “took a lot of money from a group of people and had a major impact on their lives." In imposing sentence, Judge Whyte also stressed the need “to send a message that this type of fraud should not be tolerated.”
Hu has been in custody since his arrest in Hong Kong on March 17, 2009. After the United States successfully obtained Hu’s extradition from Hong Kong, former United States Magistrate Judge Patricia V. Trumbull in 2009 granted the United States motion to have Hu detained pending trial as a flight risk. Judge Whyte also sentenced the defendant to three-year period of supervised release and ordered a hearing on restitution to take place on March 18, 2013.
Assistant United States Attorneys Joseph Fazioli and Timothy Lucey prosecuted the case with the assistance of Legal Assistants Nina Burney and Kamille Singh and Paralegal Specialist Lakisha Holliman. The prosecution is the result of a multi-year investigation by the Federal Bureau of Investigation. The United States Attorney’s Office recognizes the substantial and valuable assistance in this matter of the San Francisco Regional Office of the Securities and Exchange Commission and the Office of International Affairs of the Department of Justice.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.gov.
(Albert Hu Indictment )
Hartford Crack Dealer Sentenced to More Than Seven Years in Federal PrisonRead the Press Release
January 14, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that JUAN CARTAGENA, 28, of Hartford, was sentenced today by Chief United States District Judge Alvin W. Thompson in Hartford to 92 months of imprisonment for distributing crack cocaine in Hartford. CARTAGENA also was ordered to serve five years of supervised release and perform 250 hours of community service after his release from prison.
This matter stems from “Operation Vinefield,” a joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force targeting narcotics trafficking and gang violence in Hartford’s North End. As a result of the nine-month investigation, 38 individuals were charged with various offenses related to the distribution of crack cocaine and the unlawful possession and dealing of firearms in and around Hartford.
According to court documents and statements made in court, CARTAGENA and others conspired to distribute crack cocaine in Hartford’s lower Vine Street area, as well as in other locations in Hartford and East Hartford.
CARTAGENA, whose criminal history includes multiple felony convictions, has been detained since his arrest on March 9, 2012. On August 29, 2012, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 28 grams or more of cocaine base (“crack cocaine”).
This matter has been investigated by the FBI’s Northern Connecticut Violent Crimes Task Force, the Connecticut State Police, the Hartford Police Department, and the Connecticut Department of Correction. The case is being prosecuted by Assistant United States Attorney Brian P. Leaming.
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[email protected]Greenville Man SentencedRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that in federal court on Friday, January 11, 2013, United States District Judge Louise W. Flanagan sentenced DALE CABINESS, 55,of Greenville,North Carolina, to 188 months imprisonment followed by 6 years supervised release.
A Federal Grand Jury returned a Criminal Indictment on March 14, 2012, charging CABINESS with violations of federal narcotics laws. CABINESS entered a guilty plea on August 14, 2012, to the distribution of quantities of heroin.
According to evidence presented in Court, the Greenville Regional Drug Task Force used a confidential informant to purchase heroin from CABINESS four times between December 1, 2011, and February 23, 2012. The investigation revealed that CABINESS was responsible for the distribution of 840 grams of heroin between September 2011 and April 2012.
CABINESS received an enhanced sentenced based on his status as a Career Offender.
Investigation of this case was conducted by the Greenville Regional Drug Task Force consisting of the Greenville Police Department, Pitt County Sheriff’s Office, Farmville Police Department, North Carolina State Bureau of Investigation, and the Drug Enforcement Administration. The prosecution was handled by Special Assistant United States Attorneys Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Clark Everett has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
Garland, Texas, Man Sentenced to More Than Five Years in Federal Prison on Bank Fraud and Aggravated Identity Theft ConvictionsRead the Press Release
DALLAS — Kevin Dwayne Williams, 43, of Garland, Texas, was sentenced Friday afternoon by Chief U.S. District Judge Sidney A. Fitzwater to 61 months in federal prison following his guilty plea in September 2012 to one count of bank fraud and one count of aggravated identity theft, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. In addition, Judge Fitzwater ordered that Williams pay approximately $2,500 in restitution.
In a superseding indictment returned in May 2012, a federal grand jury in Dallas charged Williams with three counts of possession of stolen mail, two counts of bank fraud and two counts of aggravated identity theft. At sentencing, the remaining five counts of the indictment, to which Williams did not plead guilty, were dismissed.
Williams pleaded guilty to Counts Four and Five of the Indictment which alleged that in January 2012, Williams either burglarized victim “E.P.’s” residence, or obtained items that had been stolen from E.P.’s residence, including his birth certificate and other documents containing personal information, such as Social Security number and date of birth. In fact, Count Four of the indictment alleged that Williams stole mail from several residential mailboxes in and around Dallas, including Garland, Mesquite and Rowlett, Texas, often stealing blank check books as well as credit card offers, which included blank credit card convenience checks.
According to the factual resume filed in the case, on January 5, 2012, Williams, falsely representing himself as E.P., opened a checking account at First National Bank/First Convenience Bank by using a temporary driver’s license and a Social Security card in the name of E.P. To fund the account, he gave bank officials an $800 Discover Card check made payable to E.P. The following day, again representing himself as E.P., Williams presented the teller a $225 check, drawn on another bank and made payable to E.P. Williams presented the teller a temporary driver’s license and Social Security card in the name of E.P. Relying on Williams’ false representations that he was E.P., and the fraudulent documents he presented, the teller cashed the check per Williams’ instructions.
The case was investigated by the U.S. Postal Inspection Service and the Garland Police Department. Assistant U.S. Attorney Aaron Wiley was in charge of the prosecution.
Four Defendants in Aryan Knights Investigation Plead Guilty to Conspiring to Distribute MethRead the Press Release
BOISE – Lisa Rochel Samayoa, 45, of Boise, Darin Scott Melton, 44, of Twin Falls, Idaho, Nina Ann Lucas, 32, of Pocatello, Idaho, and Omar Riveroll-Hernandez, 32, of Long Beach, California, pleaded guilty today in United States District Court to conspiring together to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced.
A federal grand jury indicted the defendants on September 12, 2012. The indictment and thirteen others were the result of a long-term investigation by the Treasure Valley Metro Violent Crimes Task Force. The investigation focused on illegal drug distribution by the “Aryan Knights,” a gang active in prison and on the streets throughout Idaho. Through the investigation, law enforcement agents identified Aryan Knights gang members who were trafficking methamphetamine, as well as associates of the gang who were the source of that methamphetamine.
The charge of conspiracy to distribute methamphetamine is punishable by up to life imprisonment, a maximum fine of $10 million, and a minimum term of five years of supervised release.
The defendants are scheduled to be sentenced on May 6, 2013, by U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
"Methamphetamine is a dangerous and addictive drug that destroys lives and harms Idaho communities," said Olson. "These four defendants face severe consequences for choosing to traffic methamphetamine for personal profit. This office and federal, state and local law enforcement partners will continue to aggressively investigate and prosecute drug traffickers." Olson said that her office had a strong record of prosecuting methamphetamine cases in 2012, with 73 defendants sentenced in federal court in Idaho for methamphetamine distribution crimes.
The cases were the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, U.S. Marshals Service, and the Treasure Valley Metro Violent Crime Task Force, a task force comprised of federal, state and local agencies, including the Boise Police Department, Ada County Sheriff’s Office, Caldwell Police Department, Nampa Police Department, Meridian Police Department, and Canyon County Sheriff’s Office; the Twin Falls Police Department, Twin Falls Sheriff’s Office, Idaho State Police, and District 3 Probation and Parole.
The Aryan Knights cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Fort Thompson Man Guilty of Abusive Sexual ContactRead the Press Release
US Attorney Brendan V. Johnson announced that Jarrod Johnson, age 41, of Fort Thompson, appeared before US District Judge Roberto A. Lange on January 10, 2013, and pled guilty to the Superseding Information that charged him with Abusive Sexual Contact. The maximum penalty upon conviction is 3 years of imprisonment, a $250,000 fine, or both.
The charge stems from an incident when Johnson engaged in and attempted to engage in sexual contact with the victim, who at that time was incapable of appraising the nature of the sexual contact.
The investigation was conducted by the Bureau of Indian Affairs. Assistant US Attorney Meghan N. Dilges is prosecuting the case. Johnson was released pending sentencing. A sentencing date has been set for March 25, 13.
Fort Myers Man Sentenced to 10 Years in Prison for Distributing Child PornographyRead the Press Release
Fort Myers, Florida - United States Attorney Robert E. O'Neill announces that Edwin Carroll Snyder (39, Fort Myers) was sentenced today to 10 years in federal prison for distributing child pornography.
According to court documents, in March 2012, Snyder distributed twenty-five files of child pornography from his computer through the use of a peer-to-peer file sharing program. Snyder distributed these files to an undercover detective with the New Zealand Police. In April 2012, a search warrant was executed at Snyder’s residence in Fort Myers, Florida, during which he was found to possess in excess of 1500 images and 80 videos of child pornography. Snyder admitted to law enforcement agents that he had been seeking and downloading images and videos of child pornography for approximately five years.
This case was investigated by the Federal Bureau of Investigation (FBI) Innocent Images Task Force, with participation from the Lee County Sheriff's Office, Cape Coral Police Department, and Clewiston Police Department. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Two Savannah Men Sentenced to Lengthy Prison Terms for Federal Firearms OffensesRead the Press Release
Prosecutions part of Project CeaseFire, which targets dangerous
felons and drug traffickers with firearms in the Savannah areaSAVANNAH, GA – Two Savannah residents, Jacques Pope, 21, and Antwan Clark, 24, were sentenced last Thursday by Senior District Court Judge B. Avant Edenfield for their roles in federal firearms violations in the Savannah area. Pope was sentenced to 96 months in prison for being a felon in possession of ammunition; Clark was sentenced to 84 months in prison for, in part, possessing a firearm during a drug trafficking crime. Judge Edenfield ordered that both sentences run consecutive to state sentences that defendants were currently serving for unrelated crimes.
Evidence during the sentencing hearings revealed that Pope, a felon, discharged a firearm on New Year’s Eve, 2011, and struck a pedestrian. While a firearm was not recovered, evidence linked the discharged ammunition to Pope. Clark was sentenced after Savannah-Chatham Counter Narcotics Team executed a search warrant at his residence where marijuana, cocaine, and loaded firearms were recovered.
Both cases were prosecuted under Project Ceasefire, a joint firearms initiative of the U.S. Attorney’s Office, the Chatham County District Attorney’s Office, the ATF, and the Savannah-Chatham Metro Police Department. Project Ceasefire is a cooperative effort between federal and local law enforcement agencies to combat gun crime by targeting felons previously convicted of drug offenses or crimes of violence and who are found to be in possession of firearms, as well as those who commit violent gun offenses. During 2012, the United States Attorney’s Office charged 55 defendants with federal firearms offenses that were committed in the Savannah area.
United States Attorney Tarver said, “Law enforcement’s top priority is the safety of our citizens. We will bring the full force of justice on dangerous criminals who possess firearms. Those dangerous felons who possess firearms will be investigated, prosecuted, and can expect to serve lengthy prison sentences in federal prison.
Assistant United States Attorneys Tania Groover and Carlton R. Bourne prosecuted the cases against Pope and Clark for the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.Former Treasure Valley Woman Pleads Guilty to Theft from Financial InstitutionRead the Press Release
BOISE – Season Heather Hymas, 27, of American Fork, Utah, pleaded guilty today in United States District Court in Boise to theft from a financial institution, a misdemeanor, U.S. Attorney Wendy J. Olson announced. The charge is punishable by up to one year in prison, a maximum fine of $100,000, and up to one year of supervised release.
According to the plea agreement, on December 8, 2006, Season Hymas obtained a residential loan based on false statements in a loan application. The false statements included misrepresentations concerning her employment, monthly income, and the account balance of funds held in a bank account.
Season Hymas is scheduled to be sentenced on April 8, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise. The defendant’s husband, Travis Richard Hymas, was sentenced in October 2012 to 24 months in prison for wire fraud and ordered to pay $241,307.04 in restitution.
The case is part of the investigation of mortgage fraud activity related to Crestwood Homes, which involved multiple defendants who bought and sold real estate in order to "flip" it, or gain profits from the sales. Crestwood Homes was a residential builder in the Treasure Valley that filed for bankruptcy in July 2008. After doing so, it was discovered that individuals associated with Crestwood were involved in submitting fraudulent residential loan applications to lenders. The financial institutions and mortgage lenders incurred substantial losses on the loan transactions.
The case was investigated by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation, with assistance provided by the Office of the United States Trustee and the Idaho Department of Insurance. The case is being prosecuted by the U.S. Attorney's Office for the District of Idaho and the State of Idaho, Office of the Attorney General.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Former Office Administrator and Secretary to District Attorney for the 15th Judicial District Pleads Guilty to Bribery ChargesRead the Press Release
Acknowledges Receiving $55,000 in Bribes
LAFAYETTE, La.: United States Attorney Stephanie A. Finley announced today that Barna D. Haynes, 58, of Lafayette, La., the former office administrator and secretary to the District Attorney for the 15th Judicial District, pled guilty to a one count Bill of Information charging Haynes with Conspiracy. According to the Bill of Information, beginning in approximately March of 2008 and continuing until February 27, 2012, Haynes conspired to accept bribes from a co-conspirator in return for Haynes’ assistance in obtaining favorable resolutions of criminal cases pending in the 15th Judicial District.
The following are admissions made by Haynes in a factual stipulation during the guilty plea hearing in the open court before Magistrate Judge Patrick J. Hanna:
Haynes knew at the time she accepted the bribes that the co-conspirator was soliciting and receiving large payments from individuals with criminal cases pending with the District Attorney's Office. Haynes also knew that the co-conspirator has never been licensed to practice law. The cases for which Haynes received payments from the coconspirator involved a variety of crimes, both felonies and misdemeanors, the majority of which were Operating a Vehicle While Intoxicated (OWI) cases.
The Louisiana Code of Criminal Procedure Article 894 provides a procedure by which a person can initially plead guilty to a crime with the understanding that the conviction will be set aside if the person successfully completes certain requirements imposed during a probationary period.
The District Attorney's Office had previously established a process by which select individuals could receive what was referred to as “immediate 894 pleas” on OWI cases. In order to qualify for the “immediate 894 plea,” the charged individuals had to provide certifications at the time of the plea that they had completed all legal prerequisites, including community service, a substance abuse program, and a driver safety program. If the District Attorney authorized the “immediate 894 plea,” their case was not placed on any docket, and they were allowed to plea at a time and place different than the normal OWI docket. Following the entry of the “immediate 894 plea” the judge would immediately grant the 894 motion dismissing the conviction, which served as an acquittal, thereby enabling those OWI defendants to immediately reinstate their driving privileges.
Beginning in 2008, Haynes began placing OWI cases of the co-conspirator’s “clients” in the immediate 894 process without the District Attorney's knowledge and approval. Haynes would coordinate the scheduling and execution of special immediate 894 sessions with the District Court Judge and the assigned Assistant District Attorney. These special sessions were exclusively for the co-conspirator’s “clients.” Haynes also prepared the expungement paperwork associated with the co-conspirator's client's cases. In return for coordinating these 894 sessions, Haynes was paid $500 per case by the co-conspirator.
While the co-conspirator paid Haynes primarily to facilitate “immediate 894 pleas” in OWI cases, he also paid Haynes to facilitate the resolution of other cases including drug cases, other felony cases, and non-OWI misdemeanor cases. Haynes admitted that the bribe payments she received during the term of the conspiracy totaled $55,000. However, the prosecution contends that the bribe payments exceeded $70,000.
At sentencing, this defendant faces a term of imprisonment of up to five years, a fine of up to $250,000, or both, and a term of supervised release of not more than three years following confinement. Sentencing will be scheduled at a later date.
United States Attorney Finley stated, “Corruption in the District Attorney’s Office erodes public confidence in the fair prosecution and resolution of criminal cases and threatens to undermine our judicial system. My office, along with the FBI, is committed to aggressively investigating and prosecuting those who try to advance their personal agendas through bribery.”
For additional details regarding Haynes’ guilty plea, see attached a copy of the Plea Agreement.
The case is being investigated by lead agent Doug Herman with the FBI and is being prosecuted by Assistant U.S. Attorney John Luke Walker.
United States Attorney Finley is available for comment and can be reached at (337) 262-6618.
Former Jersey City Health & Human Services Assistant Director and Zoning Official Sentenced to 30 Months in PrisonRead the Press Release
Previously Pleaded Guilty to Conspiracy to Commit Attempted Extortion
NEWARK, N.J. – Former Jersey City Health & Human Services Assistant Director and zoning official Maher A. Khalil was sentenced today to 30 months in prison for conspiring to commit extortion.
Khalil, 42, previously pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an Information charging him with conspiracy to commit extortion under color of official right. Khalil admitted he accepted bribes from a government cooperating witness in return for attempting to obtain real estate development approvals for the cooperating witness, and for facilitating bribe payments to other municipal officials.
According to documents filed in this case and statements made in court:
Between March 2008 and July 2009, Khalil accepted a total of $72,500 in corrupt payments from the cooperating witness, Solomon Dwek, in exchange for his official influence as a Jersey City official in favor of Dwek and for facilitating introductions and corrupt payments to other municipal officials willing to accept corrupt payments for helping Dwek obtain development approvals. Khalil accepted cash bribe payments on numerous occasions in exchange for assistance in obtaining approvals for a property on Garfield Avenue in Jersey City.
Khalil also said he accepted bribe payments from Dwek after arranging meetings between Dwek and various Jersey City municipal officials who, in exchange for corrupt payments, would help Dwek get approvals.
In addition to the prison term, Judge Linares sentenced Khalil to one year of supervised release and ordered him to forfeit $72,500.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez; and IRS - Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s sentencing. He also thanked the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher J. Gramiccion, for its role in the investigation.
The government is represented by Assistant U.S. Attorney Mark McCarren of the U.S. Attorney’s Office Special Prosecutions Division.
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Defense counsel: Michael F. Pedicini Esq., Morristown, N.J.Former Florida Hospital Employee Sentenced to Federal Prison for Data TheftRead the Press Release
Orlando, Florida - U.S. District Judge Roy B. Dalton, Jr. today sentenced Dale Munroe II (35, Winter Haven) to 12 months and one day in federal prison for his role in stealing the information of Florida Hospital patients. As part of his sentence, Munroe was also ordered to serve a two-year term of supervised release. Munroe pleaded guilty on October 22, 2012.
According to court documents, Munroe was hired at the Celebration, Florida location of Florida Hospital in July 2006. During his employment, he worked as a Registration Representative in the Emergency Department where he would register patients as they came in the main emergency entrance. From January 2009, until his termination in July 2011, Munroe used his position to obtain individually identifiable health information of patients of Florida Hospital who had been involved in motor vehicle accidents. Munroe would then disclose that information to Sergei Kusyakov, who was involved in the operation of two chiropractic clinics (Metro Chiropractic and Wellness Center and City Lights Medical Center). Kuskyakov and other conspirators would then use the stolen information to solicit Florida Hospital patients for chiropractic and legal services. Kusyakov would pay Munroe for his role in providing the stolen information. On July 12, 2011, Munroe was terminated by Florida Hospital for a patient data breach that was unrelated to the conspiracy described above.
Approximately a week after his termination, Katrina Munroe (30, Winter Haven), Munroe’s wife and also an employee of Florida Hospital, was recruited by the conspirators to take over the role of stealing patient data and providing it to Kusyakov. In August 2012, Katrina Munroe was terminated from her position at the hospital, after becoming a suspect in a data breach incident. In December 2012, she pleaded guilty to her role in the conspiracy. She faces a maximum penalty of five years in federal prison. Her sentencing hearing has been set for March 11, 2013.
On January 7, 2013, Sergei Kusyakov (38, Davenport) pleaded guilty to one count of conspiracy and four counts of wrongful disclosure of individually identifiable health information. He faces a maximum penalty of 45 years in federal prison. His sentencing hearing has been set for March 25, 2013.
These cases were investigated by the Federal Bureau of Investigation and the Florida Department of Financial Services, Division of Insurance Fraud. They are being prosecuted by Assistant United States Attorney Roger B. Handberg.
Former Citibank Employee Convicted for Stealing and Hiding More Than $1.3 Million from Wall Street Titan William SalomonRead the Press Release
Also Convicted of Failing to Pay More Than $250,000 in Taxes
NEWARK, N.J. – A former Citibank employee was convicted today of stealing more than $1.3 million from William Salomon, a 98-year-old former managing partner of Salomon Brothers, which was later acquired by Citibank, U.S. Attorney Paul J. Fishman announced.Karen Febles, 48, of Wallington, N.J., who worked as an executive assistant for Citibank, helping Salomon with his personal and professional finances, was convicted by a jury of bank fraud, four counts of wire fraud, three counts of money laundering, and two counts of tax evasion, after a one-week trial before U.S. District Judge William J. Martini in Newark federal court.
“Karen Febles took advantage of her position as an executive assistant to loot her employer’s bank accounts of nearly $2 million,” U.S. Attorney Fishman said. “By betraying her employer’s trust, Febles financed a luxurious lifestyle she could not otherwise have afforded. Today’s jury verdict ensures she will soon find out the true cost of her choices.”Acting Special Agent in Charge of IRS-Criminal Investigation, Newark Field Office, Shantelle P. Kitchen said, “This case shows that the appearance of success can be a mask for a tangled web of financial lies. Today, justice is served as Karen Febles is being held responsible and will now have to face judgment for her criminal conduct.”
Acting Special Agent David Velazquez said: “The FBI remains committed to vigorously investigating individuals who violate positions of trust. Karen Febles took advantage of her unique relationship with her employer in order to fulfill her selfish need for luxurious items and trips. Today’s verdict sends a message to others, in similar positions of trust, that these activities will be fully investigated by the FBI.”
According to documents filed in this case and the evidence at trial:
From at least 2000 through September 2011, Febles worked as an executive assistant for Citibank in New York City. Her duties included assisting Salomon with his finances. As part of her employment, Febles had exclusive control over Mr. Salomon’s bank accounts and routinely prepared and negotiated checks on his behalf. Febles was terminated by Citibank in September 2011.Between 2007 and September 2011, at least $1.3 million of Mr. Salomon’s funds went from his bank accounts directly into Febles’ 21 bank accounts, including two accounts that she maintained for her minor son. A review of hundreds of checks written by Febles revealed that the checks had been altered by Febles – after they had been signed by Mr. Salomon – to add additional sums of money. Once issued, Febles negotiated many of these checks, in cash, for the altered amount.
At the same time that more than $900,000 in checks and almost $400,000 cash went from Mr. Salomon’s bank accounts into Febles’ accounts, Febles spent hundreds of thousands of dollars on luxury purchases. These included, in just a five-month period in 2011, $52,720 in cash for a 2011 Range Rover; $34,650 in cash for a Mercedes-Benz; $43,200 in cash for one year’s rent of a three-bedroom home in Clifton, N.J.; and more than $45,000 in cash for six months’ rent on two apartments in Palisades Park, N.J. Febles’ purchases also included more than $115,000 on vacation and travel expenses; $56,000 rent on a four-bedroom home in Mahwah, N.J.; more than $20,000 on other automobile payments; and more than $20,000 on personal expenses, including entertainment, meals, travel, and clothing. During this time, Febles never earned more than $50,000 per year in take-home pay from Citibank.
In addition to the evidence of Mr. Salomon’s money going into Febles’ bank accounts and the evidence of Febles’ expenditures, the evidence at trial also established that Febles transferred hundreds of thousands of dollars that she stole from Mr. Salomon from her accounts into custodial bank accounts that she maintained for her minor son. The jury found that Febles transferred these funds to her son in order to conceal her bank and wire frauds.
In the tax years 2009 and 2010, Febles failed to disclose to the IRS any of the money that she stole from Mr. Salomon. In those two years, she claimed tax refunds of $14,839 and $9,293, respectively. Had Febles disclosed the money that she stole from Mr. Salomon on her tax returns in 2009 and 2010, she would have owed almost $70,000 to the United States in 2009 and more than $200,000 to the United States in 2010.
The bank fraud count carries a maximum potential penalty of 30 years in prison and a maximum fine of $1 million. Each of the four counts of wire fraud carry a maximum potential penalty of 30 years in prison and a maximum fine of $1 million. Each of the three counts of money laundering carry a maximum potential penalty of 20 years in prison. Each of the two counts of tax evasion carry a maximum potential penalty of five years in prison and a maximum fine of $250,000. Sentencing is scheduled for June 5, 2013.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Kitchen in Newark, and special agents of the FBI, under the direction of Acting Special Agent in Charge Velazquez in Newark, with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorneys Aaron Mendelsohn of the Economic Crimes Unit and Evan Weitz of the Asset Forfeiture and Money Laundering Unit of the U.S. Attorney’s Office in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
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Defense counsel: Edward J. McQuat and Richard Langweber, New York
Former CPA Sentenced for Filing False Tax ReturnsRead the Press Release
Macon J. Dew, 64, of Mr. Juliet, Tennessee, was sentenced on January 11, 2013, by Chief U.S. District Judge William J. Haynes, Jr., to serve 12 months and 1 day in federal prison, and ordered to pay restitution in the amount of $205,535.00 to the IRS for his role in the preparation of false tax returns, announced Jerry E. Martin, U.S. Attorney for the Middle District of Tennessee. Dew was also prohibited from preparing or filing any future tax returns.
On July 18, 2012, Dew pleaded guilty to two counts of aiding and assisting in the preparation of false tax returns. Dew admitted that he was a Certified Public Accountant until 2008 and he had operated a tax return preparation business in Mt. Juliet and Old Hickory, Tenn. He acknowledged that between 2001 and 2004, he prepared at least 33 false income tax returns for others. The false items included fictitious W-2 forms, false Schedule C businesses, and fraudulent education credits. Dew admitted that the tax loss from the filing of these false returns was at least $40,000.
Additionally, Dew admitted that for the 2006 tax year, he prepared returns and relevant schedules for two individuals who formed a corporation known as CP Construction, LLC. The returns falsely reported a loss of $751,300.00 each. These claimed losses resulted in a tax loss to the government of $165,535.
“This office will vigorously prosecute those who defraud the United States government by filing false income tax returns,” said U.S. Attorney Martin. “It is especially offensive when individuals with licenses and special knowledge use their skills to prepare false returns and false documents to support them. We will continue to pursue the public money that was paid for false tax refunds to restore it to the U.S. Treasury.”
This investigation was conducted by IRS- Criminal Investigation. Assistant U.S. Attorney Jimmie Lynn Ramsaur represented the government.Former Border Patrol Agent Sentenced for Possession of Child Pornography and Theft of Government PropertyRead the Press Release
United States Attorney Laura E. Duffy announced today that United States District Judge Marilyn L. Huff sentenced former United States Border Patrol (USBP) agent Rodolfo Zuniga to serve 37 months in prison and five years of supervised release, and to pay $9,937.71 in restitution to the United States based on his conviction of three federal crimes: (1) possession of images of minors engaged in sexually explicit conduct, in violation of Title 18, United States Code, Section 2252(a)(4)(B); (2) theft of government property, in violation of Title 18, United States Code, Section 641; and (3) interstate transportation of stolen goods, in violation of Title 18, United States Code, Section 2314. Judge Huff also ordered Zuniga to comply with all federal, state, and local laws, including to register as a sex offender.
According to information included in Zuniga’s written plea agreement and discussed at his sentencing, during the period between November 2009 and March 2010, Zuniga was a USBP agent 2 employed by U.S. Customs and Border Protection (CBP), U.S. Department of Homeland Security (DHS). He was assigned to the Imperial Beach Border Patrol Station, San Diego Sector, located in Imperial Beach, California.
While assigned to the Imperial Beach USBP station, Zuniga served as an Explorer Scout Advisor, and while serving in that capacity he had access to equipment owned by the USBP/CPB. The equipment included night vision goggles (NVGs) and global positioning system (GPS) units. From time to time, Explorer Scouts under Zuniga's supervision used that equipment as part of their training. While assigned to the Imperial Beach USBP station, Zuniga stole four sets of NVGs and one GPS unit, and thereafter sold them on the Internet auction and shopping website, eBay, Inc. Zuniga received payments for the stolen property through PayPal, Inc., from an individual located in China. The total amount of money Zuniga received for the NVGs, which were not recovered, was $9,937.71. The GPS unit was sold to a couple in New Jersey, for $77.73. Agents recovered the GPS unit.
On June 29, 2012, agents served a federal search warrant at Zuniga’s Chula Vista apartment. Zuniga's desktop computer and an external hard drive were seized. Later forensic analysis revealed the computer and external hard drive contained 384 visual depictions of minors engaged in sexually explicit conduct (89 images were discovered on the desktop computer; the external hard drive contained 220 images and one video).
Zuniga was arrested by Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the DHS Office of Inspector General (OIG). Zuniga resigned from the USBP on July 16, 2012.
DEFENDANT Case Number: 12CR3759-H Rodolfo Zuniga SUMMARY OF CHARGESCount 1 - Title 18, United States Code, Section 641 (Theft of Government Property) Count 2 - Title 18, United States Code, Section 2314 (Interstate Transportation of Stolen Goods)
INVESTIGATING AGENCIES
Count 3 - Title 18, United States Code, Section 2252(a)(4)(B) (Possession of Child Pornography)Immigration and Customs Enforcement's Homeland Security Investigations
Department of Homeland Security Office of Inspector GeneralFive Laredoans Convicted in Conspiracy to Transport CocaineRead the Press Release
LAREDO, Texas – Alberto Sauceda, 38, Salvador Rodriguez-Fajardo, 38, Ricardo Garza, 39, Moises Andrade, 20, and Laura Rodriguez, 42, all of Laredo, have been convicted for their roles in a cocaine conspiracy, United States Attorney Kenneth Magidson announced today.
All five were named in a sealed indictment returned by a grand jury on Aug. 28, 2012, which alleged the drug trafficking organization transported five kilograms or more of cocaine since 2008. The organization transported cocaine from Nuevo Laredo, Mexico, to Houston and Miami on a regular basis. Last week, Rene Cardenas, 36, of Miami, Fla., also pleaded guilty to the conspiracy.
In the guilty plea today, Sauceda admitted to the possession of more than four kilograms of cocaine in his Ford F-150 in January 2010. That same vehicle, as well as another vehicle registered to Sauceda, were utilized in the delivery of two to three kilograms of cocaine by Garza on three occasions in July 2011 to Rodriguez-Fajardo at a Home Depot parking lot. Rodriguez-Fajardo stored the cocaine in a secret compartment located behind a stove in the house he shared with his wife, Rodriguez.
Rodriguez assisted Rodriguez-Fajardo in carrying out the conspiracy. On one occasion, she traveled to St. Augustine Square in Laredo to collect money for him and another person as payment for their services.
Andrade admitted to his role in the transportation of one cocaine load on Aug. 7, 2011, for which he received $500.
Each defendant faces a mandatory minimum sentence of 10 years and up to life in prison and a $10 million fine. The United States is also seeking a money judgment in the amount of $2,408,204. U.S. District Judge Marina Garcia Marmolejo accepted the pleas and has set sentencing for April 30, 2013.
The case is the result of a two-year Organized Crime Drug Enforcement Task Force Investigation dubbed Silver Fox Hunt led by the Drug Enforcement Administration with the assistance of Homeland Security Investigations. Assistant United States Attorneys James Hepburn and Elizabeth Rabe are handling the case.
Fitchburg Man Convicted of Distributing Crack CocaineRead the Press Release
BOSTON - A Fitchburg man was convicted Friday in U.S. District Court in Worcester for distributing crack cocaine.
Hector Rodriguez, Jr. a/k/a Bolo, 32, was convicted by a jury of three counts of distributing cocaine base. Sentencing is scheduled for April 8, 2013. Rodriguez faces up to life in prison, to be followed by at least eight years of supervised release and a $5 million fine.
During the five-day trial evidence showed that Rodriguez distributed crack cocaine on Oct. 26, Nov. 2, and Nov. 16, 2011. In January 2012, Rodriguez was arrested as part of Operation Red Wolf, a multi-agency investigation targeting gang members involved in drug dealing and firearms distribution in the Fitchburg area.
United States Attorney Carmen M. Ortiz; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division; Guy Thomas, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Fitchburg Police Chief Robert A. DeMoura; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Cory Flashner and Mark Grady of Ortiz’s Worcester Branch Office.Final Defendant in Pill Conspiracy Enters Plea of GuiltyRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA - The final defendant involved in a pill conspiracy in Moundsville, West Virginia, entered a plea of guilty on January 4, 2013, before Magistrate Judge James E. Seibert.
United States Attorney William J. Ihlenfeld, II, announced that: JOHN HARVEY GODDARD, JR., age 26, entered a plea of guilty “Distribution of Oxycodone” on February
10, 2011, in Moundsville.GODDARD, who is in custody pending sentencing, face up to 20 years imprisonment and a $1,000,000 fine.
This case was prosecuted by Assistant United States Attorney John C. Parr and investigated by officers of the Moundsville Police Department, Marshall County Sheriff’s Department and the West Virginia State Police.
Felon from Aurora, Minnesota, Sentenced for Possessing A 20-gauge ShotgunRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 34-year-old felon from the northeastern Minnesota community of Aurora was sentenced for possessing a 20-gauge shotgun. United States District Court Judge Patrick J. Schiltz sentenced John Joseph Douglas to 240 months in federal prison on one count of being an armed career criminal in possession of a firearm. Douglas was indicted on this charge on October 4, 2011, and convicted on February 10, 2012, following trial.
The evidence presented at trial proved that on May 30, 2011, Douglas possessed the gun and, while surrounded by a group of people, fired it into the air several times. Upon their arrival on the scene, officers found the people seated around a campfire in a vacant lot. Searching the grounds, the officers discovered a box of ammunition and several freshly fired shotgun shell casings. They found the sawed-off shotgun itself nearby.
Because Douglas was previously convicted of a felony, he was prohibited under federal law from possessing firearms at any time. His prior convictions include third-degree burglary (1999), first-degree burglary (1999), second-degree assault (1999 and 2007), and aggravated robbery (twice in 1999), all of which occurred in St. Louis County. Since each of those offenses constituted crimes of violence, Douglas’s sentence in the current federal case was subject to the federal armed career criminal statute, which mandates a minimum sentence of 15 years in federal prison. Since the federal criminal justice system does not have parole, Douglas will serve virtually his entire sentence behind bars.
This case was the result of an investigation by the St. Louis County Sheriff’s Office, the Hoyt Lakes Police Department, the Gilbert Police Department, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorneys Andrew Dunne and Jeffrey M. Bryan.Federal Grand Jury Returns IndictmentsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA — Five individuals were named in five Indictments returned by a federal grand jury sitting in Clarksburg, West Virginia, on January 8, 2013.
United States Attorney William J. Ihlenfeld, II, announced the following indictments: BRIAN A. CLARKE, age 25, of Morgantown, West Virginia, was named in a three-
count Indictment charging him with “Distribution of Oxycodone” on May 2; May 16; and,
June 8, 2012, in Monongalia County. If convicted, CLARKE faces up to 20 years imprisonment and a $1,000,000 fine on each count.AUGUST TAMPOYA, age 48, of Arnettsville, West Virginia, was named in a three- count Indictment charging him one count of “Manufacturing in Excess of 100 Marijuana Plants;” one count of “Distribution of Marijuana;” and, one count of “Possession with Intent to Distribute Marijuana.” If convicted, TAMPOYA faces up at least 5 and up to 40 years imprisonment and a fine of $2,000,00 on the manufacturing charge and up to 5 years imprisonment and a fine of $250,000 on each of the distribution and possession counts.
JENNIFER NICOLE KELLEY, age 27, of Morgantown, was named in a seven-count Indictment charging her with three counts of “Distribution of Marijuana;” three counts of “Distribution of Cocaine;” and, one count of “Distribution of Marijuana within 1,000 Feet of Fairmont State University.” If convicted, KELLEY faces up to 5 years imprisonment and a
$250,000 on each of the marijuana distribution counts; up to 20 years imprisonment and a
$1,000,000 fine on each of the cocaine distribution counts; and, at least 1 and up to 10 years imprisonment and a $500,000 on the protected location (FSU) count.These three cases were investigated by the West Virginia State Police-Bureau of
Criminal Investigations.
JOSHUA NICHOLSON, age 35, of Lost Creek, West Virginia, was named in a two- count Indictment charging him with “Possession of a Firearm by a Convicted Felon” and “Possession of a Firearm with an Obliterated Serial Number.” If convicted, NICHOLSON faces up to 10 years imprisonment and $250,000 fine on each count.TIMOTHY LINGO, age 35, of Westover, West Virginia, was named in a three-count Indictment charging him with “Possession of a Firearm by a Convicted Felon;” “Possession with intent to Distribute Cocaine;” and, “Use/Carry of a Firearm in Relation to a Drug- Related Offense.” If convicted, LINGO faces up to 10 years imprisonment and a $250,000 fine on the felon in possession charge; up to 20 years imprisonment and a $1,000,000 fine on the cocaine charge; and, a mandatory 5 years imprisonment and a $250,000 fine on the firearms charge.
These two cases were investigated by the Bureau of Alcohol, Tobacco and Firearms. These five cases will be prosecuted by Assistant United States Attorney Zelda E.
Wesley.All of the charges contained in the above-referenced indictments are merely accusations and not evidence of guilt, and each defendant is presumed innocent until and unless proven guilty.
Fairview Heights Man Receives 35 Years in Prison for Production of Child PornographyRead the Press Release
A Fairview Heights man, Andrew Gerald Millas, 43, received a 35 year prison sentence in federal court in East St Louis on January 14, 2013, following his plea of guilty to three counts of Production of Child Pornography and one count of Transportation of Child Pornography, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Following service of his sentence, Millas will be on federal supervised release for the remainder of his life and will also be required to register as a sex offender.
“This sentence should be a stark, but fair, reminder to those who prey on children - the eyes of law enforcement will find you and I will use every legal means to put you in prison,” said United States Attorney Wigginton.
A factual stipulation filed at the time of the guilty plea revealed that, in December, 2011, detectives of the Boise, Idaho Police Department engaged Millas in online chats after they became concerned with his postings on a website that offered child pornography for distribution. Millas sent the undercover officers still images of child pornography he had manufactured, and also broadcast a live sex act with a minor to them via a web camera. The Boise Police Department quickly forwarded the investigative lead to the Fairview Heights Police Department, and Millas was promptly arrested. Forensic analysis of computer equipment seized from Millas by the FBI revealed voluminous digital evidence, including 14,560 multimedia files, over 900,000 image files, and 21,232 recovered image files depicting screen shots captured by a keystroke logger program. Among the files recovered were movies depicting Millas having sexual relations with a sixteen year old child and other movies which Millas made through surreptitious filming which depicted other minors engaging in sexual conduct.
Millas has been in custody since his arrest on December 30, 2011. The investigation was conducted by the Boise, Idaho Police Department; the Fairview Heights Police Department, and the Collinsville Police Department, which has a detective assigned to the Federal Bureau of Investigation’s Cybercrime Task Force. This case is part of Project Safe Childhood, in which the United States Attorney’s Office, in conjunction with federal and state law enforcement authorities, is actively investigating and prosecuting individuals who are involved in the exploitation of children. The case was prosecuted by United States Attorney Stephen R. Wigginton and Assistant United States Attorney Suzanne M. Garrison.
Dracut Man Pleads Guilty to Defrauding IRS of $2 Million in Payroll TaxesRead the Press Release
BOSTON - A Dracut man was convicted today of defrauding the Internal Revenue Service of approximately $2 million by lying on corporate tax forms about how many workers he employed.
Tom Seng, 70, pleaded guilty before U.S. District Judge George A. O’Toole to 20 counts of making and subscribing a false tax return.
Beginning around 2006, S&T Industrial Service, Incorporated, (S&T) a company owned and operated by Seng, began providing temporary employees to several companies in the Boston area. Seng, however, failed to list these employees on S&T's quarterly and yearly corporate tax returns, in an effort to avoid paying Social Security and Medicare taxes on employee wages and withholding federal income taxes. Overall, Seng failed to pay and withhold federal taxes on approximately $12 million in wages, resulting in losses to the U.S. Treasury of approximately $2 million. Moreover, at least one company working with S&T placed its permanent workers on S&T's payroll, instead of keeping them on the company's books, to hide the fact that the workers were permanent employees of the company and therefore avoided paying taxes on the employees' wages.
Judge O’Toole scheduled sentencing for April 16, 2013. Seng faces up to three years in prison on each count, to be followed by up to three years of supervised release and a maximum fine of $250,000. Seng must also pay the costs of prosecution, and full restitution to the U.S. Treasury.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Andrew E. Lelling of Ortiz’s Economic Crimes Unit.
Dontreal Jenkins and Trevayne Jones Convicted of Embezzlement of Government Property and Aggravated Identity TheftRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that on January 11, 2013, a federal jury in Albany, Georgia, convicted defendants Dontreal M. Jenkins, and Trevayne D. Jones, both of Albany, Georgia, on Counts 1 through 5 of a superseding indictment on the following charges: Conspiracy to Embezzle Public Monies, United States Treasury checks in the amount of $700,000, Counts 2 and 4, Embezzlement of Government Property, and Counts 3 & 5, and Aggravated Identity Theft.
From about January 28, 2011, and continuing through on or about May 12, 2011, Jenkins and Jones, acting with others in a conspiracy to embezzle public monies, stole and cashed United States Treasury checks using, without lawful authority, the names and signatures of the intended payees. The jury further found Jones guilty on an additional count of misleading statements to law enforcement in connection with the embezzlement offense. Jenkins was convicted on an additional count of conspiracy to commit mail and wire fraud in connection with a scheme in which he participated to obtain student loan monies by fraud from the United States Department of Education.
The defendants face a maximum penalty of ten years per count as to each act of embezzlement, a $250,000 fine, and supervised release. Sentencing will be scheduled before Judge W. Louis Sands, United States District Judge for the Middle District of Georgia at a later date.
This theft of United States Treasury checks case was investigated by the United States Secret Service and the United States Department of Education Office of Inspector General investigated the student loan fraud. Assistant United States Attorney Jim Crane handled the prosecution.
For additional information, please contact Sue McKinney at the U.S. Attorney’s Office, at 478-621-2602.
Customer Embezzles $33,072.68 from the United States Postal ServiceRead the Press Release
Richard S. Hartunian, United States Attorney for the Northern District of New York, announced that JOHN GIBSON, III, age 37, of Oswego, N.Y., announced today the federal arrest of a postal customer for theft of government property.
A federal indictment, returned in U.S. District Court in Syracuse, N.Y. on Thursday, January 10, 2013, charged JOHN GIBSON, III with theft of government property in the amount of $33,072.68. The indictment alleges that GIBSON, III purchased 91 postal money orders with checks drawn on closed checking accounts.
JOHN GIBSON, III was arrested today and made his initial appearance before the Hon. Andrew T. Baxter, United States Magistrate Judge. GIBSON, III was released on his own recognizance.
GIBSON, III faces a maximum penalty of 10 years incarceration, a fine of up to $250,000, and a term of supervised release of up to 3 years.
GIBSON, III’s arrest is the result of a joint investigation by U.S. Postal Inspection Service and the United States Postal Service Office of Inspector General. The investigation began in June 2012.
JOHN GIBSON, III is being prosecuted by Assistant U.S. Attorney Tamara B. Thomson, who can be reached at 448-0672.
The charges are merely accusations and the defendant is presumed innocent until and unless proven guilty.