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25 February 2013
Hartford Man Involved in Crack Distribution Ring Sentenced to 21 Months in Federal PrisonRead the Press Release
February 25, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that HASSAN MUHAMMAD, also known as “Hadi,” 24, of Hartford, was sentenced today by Chief United States District Judge Alvin W. Thompson in Hartford to 21 months of imprisonment, followed by one year of supervised release, for his role in a Hartford crack cocaine distribution ring.
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, Joshua Easterling and Kyshiifa Boyd distributed large quantities of crack cocaine in Hartford’s lower Vine Street area, as well as in other locations in Hartford and East Hartford. In February 2012, MUHAMMAD was intercepted over a court-authorized wiretap ordering a distribution quantity of crack cocaine from Easterling.
The Hartford Police Department has identified MUHAMMAD as being a member of the AVE street gang.
On November 21, 2012, MUHAMMAD pleaded guilty to one count of using a telephone to facilitate a drug trafficking felony offense.
Easterling and Boyd have also pleaded guilty and await sentencing.
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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(203) 821-3722 [email protected]Greensburg Man Sentenced to Prison for Loan Fraud SchemeRead the Press Release
PITTSBURGH, Pa. - A resident of Westmoreland County has been sentenced in federal court to two years imprisonment, to be followed by three years of supervised release, on his conviction of wire fraud, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Thomas Lee Kemerer, 65, of Greensburg, Pa.
According to information presented to the court, during 2003, James Michael Conde and Kemerer made false statements in connection with their applications for a $1 million loan from Sky Bank and a $400,000 loan from K & K Company. The loans were supposed to be obtained for use in a business known as Precision Powdercoating & Graphics. However, Conde and Kemerer used some of the loan proceeds for their own living expenses and personal debts. Conde and Kemerer defaulted on those fraudulently acquired loans, resulting in losses of approximately $1.7 million to Sky Bank and K & K Company.
Assistant United States Attorney Shaun E. Sweeney prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Postal Inspection Service for the investigation leading to the successful prosecution of Kemerer.
Georgia Man Admits to Methamphetamine PossessionRead the Press Release
Law enforcement agents found methamphetamine in the defendant’s vehicle
HUNTINGTON, W.Va. – U.S. Attorney Booth Goodwin announced that a Georgia man pleaded guilty on Feb. 25 to possession with intent to distribute methamphetamine. Gary Diaz, 55, Roswell, Ga., admitted that in November 2012, he distributed methamphetamine to a known individual. On November 13, 2012 and November 14, 2012, a confidential informant working with law enforcement authorities purchased the methamphetamine from a known individual during two controlled drug transactions.
On November 16, 2012, law enforcement officers conducted a stop of Diaz’s vehicle near Wayne County, W.Va. During the traffic stop, a police K-9 unit gave a positive indication of the presence of drugs inside the vehicle. Law enforcement agents recovered a quantity of methamphetamine from the vehicle.
The methamphetamine recovered from the two controlled drug buys and two bags found in the trunk of the defendant’s vehicle were submitted to the West Virginia State Police Forensic Laboratory and proved to be methamphetamine weighing 349.54 grams.
Diaz faces up to 20 years in prison and a $1 million fine when he is sentenced on May 28, 2013 by United States District Chief Judge Robert C. Chambers.
The Metropolitan Drug Enforcement Network Team (MDENT) conducted the investigation. Assistant United States Attorney Haley Bunn is in charge of the prosecution.
Fort Pierce Financial Manager and Six Other St. Lucie County Residents Sentenced in $200,000 Mail Fraud Embezzlement SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, and Sean Baldwin, Chief, Fort Pierce Police Department (FPPD), announce the sentencing of Erica Gilmore-Grier, 35, of Fort Pierce, for embezzling more than $200,000 from her former employer, Policy Studies, Inc. (PSI), while working as a financial manager for the PSI Call Center in Fort Pierce, Florida. Margo Nickerson, 36, of Fort Pierce, Bridgette Galarza, 31, of Port St. Lucie, Chelsea Durham, 40, of Port St. Lucie, Jessica Harris, 22, of Fort Pierce, Jamile Williams, 34, of Fort Pierce and Venus Holloman, 26, of Fort Pierce, were also sentenced for their roles in the scheme. All of the defendants are St. Lucie County residents.
Gilmore-Grier was sentenced by the U.S. District Judge K. Michael Moore to 33 months’ imprisonment; Nickerson was sentenced to 30 months’ imprisonment; Harris was sentenced to 24 months’ imprisonment; Holloman was sentenced to 20 months’ imprisonment; Galarza was sentenced to 8 months’ imprisonment; Williams was sentenced to 4 months’ imprisonment; and Durham was sentenced to 4 months’ imprisonment and 4 months’ home detention. All of the defendants will be on supervised release after incarceration, and have been ordered to pay restitution.
From October 2008 to October 2011, PSI was a management company supporting federal and state governments in administering health and human services programs, such as health insurance for low income children, across the United States. One public program administered by PSI was Georgia PeachCare for Kids (GAPC), a children’s health insurance program providing affordable healthcare for children who are Georgia residents and who live in low-income households. PSI’s Fort Pierce Call Center administered the GAPC program. Gilmore-Grier worked as Finance Team Lead at PSI’s Fort Pierce Call Center. Gilmore-Grier was responsible for overseeing the resolution of financial issues on GAPC customer accounts and issuing refunds when customers overpaid their premiums.
From October 2008 to October 2011, Gilmore-Grier authorized fraudulent refund checks for her co-defendants and others, who were not GAPC clients and not entitled to refunds, by claiming that they were legitimate GAPC clients who had inadvertently overpaid their premiums. Based on Gilmore-Grier’s requests, PSI’s main office in Denver, Colorado, issued more than 64 checks to Gilmore-Grier’s friends and family throughout St. Lucie County. Holloman, Nickerson, Galarza, Durham, Harris and Williams were among the individuals who received and cashed checks and split the proceeds with Gilmore-Grier. Gilmore-Grier and others stole approximately $213,147.56 from PSI and GAPC through this scheme.
U.S. Attorney Wifredo Ferrer commended the investigative efforts of the Secret Service and the Fort Pierce Police Department. This case is being prosecuted by Assistant U.S. Attorney Shaniek Maynard.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Tacoma Banker Sentenced to Four Years in Prison for Defrauding Northwest Commercial BankRead the Press Release
A former Tacoma, Washington banker who fraudulently raided the line of credit belonging to a non-profit organization, was sentenced today in U.S. District Court in Tacoma to four years in prison, five years of supervised release and $917,204 in restitution, announced U.S. Attorney Jenny A. Durkan. JEFFREY R. GOODELL, 32, lied about his education to get a job at Northwest Commercial Bank, and then used his position as a loan officer to fund cash disbursements to friends and associates, and potential bank customers, using the bank accounts and line of credit of the Tacoma Rescue Mission. In all, between 2009 and 2010, GOODELL disbursed nearly $1.3 million from the bank by using the Tacoma Rescue Mission bank accounts and line of credit. U.S. District Judge Benjamin H. Settle ordered GOODELL into custody.
According to records filed in the case, GOODELL repeatedly used the line of credit associated with the Tacoma Rescue Mission, and bank accounts held by the non-profit to make unauthorized loans. When a bank executive grew suspicious, he had a friend impersonate the executive director of the organization on the phone to say the transactions were authorized. GOODELL used phony emails to further his fraud by making it appear an executive with the non-profit Rescue Mission had authorized the transactions. When executives first noticed depletions in their account, GOODELL sent them a new, falsified statement, saying the previous one was in error. At one point, to keep the fraud going, GOODELL shaved his head and claimed he had been diagnosed with cancer and therefore needed to save up his annual leave. In truth, GOODELL did not want to take leave or be away from the bank because of the risk his scheme would be uncovered. GOODELL was fired by the bank in December 2010.
In asking for a significant sentence prosecutors wrote that for more than six months, GOODELL pursued a fraud against the bank “with a vengeance. Not only did he methodically drain one TRM account after another, after he had nearly drained all of its accounts, he fraudulently used the identity of a TRM officer to open yet another account. Even after being confronted by (a TRM executive), Goodell brazenly continued the fraud the day after he assuaged (the executive’s) concern by sending her a fraudulent account statement.”
The case was investigated by the FBI and Internal Revenue Service Criminal Investigation (IRS-CI). The case was prosecuted by Assistant United States Attorney Arlen Storm.
Former State Corrections Officer Pleads Guilty to Child Pornography OffensesRead the Press Release
Springfield, Ill. – A former Illinois prison guard, Steven L. Carson, of Hillsboro, Ill., has entered pleas of guilty to charges that he sexually exploited a minor, and that he distributed and possessed images of child pornography. Carson, 46, appeared in federal court in Springfield on Feb. 21, 2013, before U.S. Magistrate Judge Byron Cudmore. Sentencing has been scheduled before U.S. District Judge Richard Mills on June 21, 2013.
Carson has remained in the custody of the U.S. Marshals Service since his arrest in August 2012, when he was charged with distribution of child pornography in a federal criminal complaint. According to the affidavit filed in support of the complaint, the Sacramento, Ca. division of the FBI’s Cyber Crime Unit was conducting an undercover investigation of peer-to-peer file-sharing accounts in April 2012, when an undercover agent conducted a file sharing session with Carson. At the time, Carson was employed as a prison guard at Graham Correctional Center.
Carson was indicted by a grand jury, and on Feb. 21, 2013, pled guilty to three counts: sexual exploitation of a minor; distribution of child pornography; and possession of child pornography. In court documents and during the court hearing, Carson admitted that in January 2000, he used a child to perform sexually explicit conduct which he videotaped. Further, Carson admitted that he engaged in peer-to-peer file sharing of child pornography, including prepubescent boys; and that he possessed images of child pornography, including more than 2,300 images and 40 videos which agents recovered from Carson’s computers. Carson also agreed to forfeiture of computers and related electronic equipment.
The statutory penalty for sexual exploitation of a minor is a mandatory minimum of 10 years in prison to 20 years in prison. For distribution of child pornography, the penalty is a mandatory minimum of five years to 20 years in prison; for possession of child pornography, the penalty is up to 10 years in prison. The defendant may also be ordered to remain on supervised release for a term up to life.
The charges are the result of an investigation by the FBI. The case is being prosecuted by Assistant U.S. Attorneys Gregory K. Harris and Bryan D. Freres.
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 U.S. 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.
Former State Corrections Officer Pleads Guilty to Child Pornography OffensesRead the Press Release
Springfield, Ill. – A former Illinois prison guard, Steven L. Carson, of Hillsboro, Ill., has entered pleas of guilty to charges that he sexually exploited a minor, and that he distributed and possessed images of child pornography. Carson, 46, appeared in federal court in Springfield on Feb. 21, 2013, before U.S. Magistrate Judge Byron Cudmore. Sentencing has been scheduled before U.S. District Judge Richard Mills on June 21, 2013.
Carson has remained in the custody of the U.S. Marshals Service since his arrest in August 2012, when he was charged with distribution of child pornography in a federal criminal complaint. According to the affidavit filed in support of the complaint, the Sacramento, Ca. division of the FBI’s Cyber Crime Unit was conducting an undercover investigation of peer-to-peer file-sharing accounts in April 2012, when an undercover agent conducted a file sharing session with Carson. At the time, Carson was employed as a prison guard at Graham Correctional Center.
Carson was indicted by a grand jury, and on Feb. 21, 2013, pled guilty to three counts: sexual exploitation of a minor; distribution of child pornography; and possession of child pornography. In court documents and during the court hearing, Carson admitted that in January 2000, he used a child to perform sexually explicit conduct which he videotaped. Further, Carson admitted that he engaged in peer-to-peer file sharing of child pornography, including prepubescent boys; and that he possessed images of child pornography, including more than 2,300 images and 40 videos which agents recovered from Carson’s computers. Carson also agreed to forfeiture of computers and related electronic equipment.
The statutory penalty for sexual exploitation of a minor is a mandatory minimum of 10 years in prison to 20 years in prison. For distribution of child pornography, the penalty is a mandatory minimum of five years to 20 years in prison; for possession of child pornography, the penalty is up to 10 years in prison. The defendant may also be ordered to remain on supervised release for a term up to life.
The charges are the result of an investigation by the FBI. The case is being prosecuted by Assistant U.S. Attorneys Gregory K. Harris and Bryan D. Freres.
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 U.S. 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.
Former Silicon Valley Engineer Will See Prison After Conviction for Stealing Marvell Trade SecretsRead the Press Release
SAN JOSE - Suibin Zhang was sentenced this morning following his conviction on five felony counts of Theft of Trade Secrets by a federal district judge, United States Attorney Melinda Haag announced today.
United States District Judge Ronald M. Whyte sentenced Zhang to serve three months in prison, to be followed by a three-year term of supervised release. Among the conditions of supervised release are that Zhang shall perform 200 hours of community service. The defendant was also ordered to pay $75,000 in restitution to the victim, Marvell Semiconductor, Inc. (Marvell); that sum is to be paid in full on or before May 31, 2013. Judge Whyte stated that Zhang’s conduct was “unacceptable” and that he hoped his sentence would carry a “strong deterrent message.”
In a verdict published on May 29, 2012, Judge Whyte found Zhang guilty of three counts of Theft and Copying of Trade Secrets for downloading the trade secrets from a secure database, one count of Duplication of Trade Secrets for loading those trade secrets onto a laptop provided by his new employer, and one count of Possession of Stolen Trade Secrets. Zhang was acquitted of three counts of Computer Fraud and one count of Unauthorized Transmission of a Trade Secret. The guilty verdict followed a 2½ week trial before Judge Whyte, which began on October 24, 2011 and concluded on November 9, 2011.
Evidence at trial showed that Zhang, 44, of Belmont, CA, was employed as a Project Engineer at Netgear, Inc., of San Jose, which gave him access to Marvell’s secure database (“Extranet”). On March 8, 2005, Zhang accepted a position at Broadcom Corporation (Broadcom), which is also Marvell’s chief competitor. Beginning the very next day, March 9, 2005, and continuing on two other days before he left Netgear, Zhang used his Netgear account to download and steal trade secret information found in dozens of documents, datasheets, hardware specifications, design guides, functional specifications, application notes, board designs, and other confidential and proprietary items from Marvell. On April 27, 2005, Zhang loaded the Marvell trade secrets onto a laptop issued by Broadcom, where they continued to reside on June 24, 2005, when the FBI served search warrants at Zhang’s home and at Broadcom, and took possession of his laptop.
“The protection of intellectual property rights, especially in Silicon Valley, is of vital importance to the economic security of our region,” said United States Attorney Melinda Haag. “The investigation and prosecution of thefts of trade secrets remains a significant priority for this office. I certainly hope the court’s sentence sends a strong message that in addition to the personal, professional, and financial costs, which are significant in themselves, these offenses result in prison time.”
The conviction is the result of an investigation by the Federal Bureau of Investigation. The investigation was overseen by the Computer Hacking and Intellectual Property (CHIP) Unit of the U.S. Attorney’s Office. Matthew Parrella and David Callaway are the Assistant U.S. Attorneys in the CHIP Unit who prosecuted the case with the assistance of Legal Tech Nina Burney-Williams. Both Marvell Semiconductor, Inc., and Netgear, Inc., cooperated fully with the FBI in the investigation.
Former Jefferson Parish President, Aaron F. Broussard, and Others Sentenced in Corruption CaseRead the Press Release
AARON F. BROUSSARD (“BROUSSARD”), age 64, a resident and former two-term President of Jefferson Parish, was sentenced today to 46 months by Senior U.S. District Court Judge Hayden Head from the Southern District of Texas, for his involvement in a Conspiracy to Commit Bribery, Wire Fraud, and Theft Concerning Programs Receiving Federal Funds, announced U.S. Attorney Dana J. Boente, FBI Special Agent in Charge Michael Anderson and IRS-Criminal Investigative Division Acting Special Agent in Charge Damon Rowe.
Also sentenced today were former Jefferson Parish Attorney, THOMAS G. WILKINSON, age 54, a resident of Gretna and BROUSSARD’s ex-wife, KAREN PARKER, age 47, a resident of Kenner. WILKINSON, who pled guilty to misprision of a felony, was sentenced to 3 years probation and ordered to pay $214,209.94 in restitution to Jefferson Parish. PARKER, who also pled guilty to misprision of a felony, was sentenced to 3 years probation and ordered to pay $160,430.15 in restitution to Jefferson Parish.
BROUSSARD was also ordered to pay $214,209.94 in restitution to Jefferson Parish and was also ordered to forfeit $280,209.94 in illegal proceeds pursuant to his plea agreement.
BROUSSARD was sentenced for his involvement in a conspiracy with Timothy Whitmer, the former CAO of Jefferson Parish, WILKINSON and PARKER to steal taxpayer funds when he and others created a sinecure Paralegal Supervisor position for PARKER. BROUSSARD knowingly and illegally diverted taxpayer funds to his ex-wife in the form of her salary for over six years, when PARKER did not even possess the most basic credentials or requisite experience to hold the position of Paralegal Supervisor and, repeatedly sought to conceal the illegal nature of her employment with Jefferson Parish by having PARKER transferred to the ID Management Office at the East Bank Regional Library in an effort to hide the fact that she was not working for the Parish Attorney’s Office as a Paralegal Supervisor and was not performing any work as a paralegal. BROUSSARD also gave pay raises to Parish Attorney, THOMAS WILKINSON, as a reward for private family matters and for continuing to approve annual pay raises for PARKER. In total BROUSSARD and PARKER improperly diverted over $323,308.00 in salary over the period of six years.
BROUSSARD was also sentenced for receiving numerous bribes totalling over $60,000.00 while parish president from William Mack in exchange for BROUSSARD’s assistance and intervention on behalf of Mack’s company.
Speaking to today’s sentencing, United States Attorney Dana J. Boente stated:
“This sad end to Aaron Broussard’s career is a self-inflicted wound resulting from his venality, corruption, and deceit. The citizens of Jefferson Parish deserved honest, effective government, and Mr. Broussard made the decision to line his own pockets. This prosecution should serve notice that this office will continue its robust and vigilant investigation of public corruption.”
Michael Anderson, Special Agent in Charge of the Federal Bureau of Investigation New Orleans Field Office added: "I am very proud of the investigative and prosecution team for always keeping their eye on the ball throughout this matter, which resulted in a fair and efficient resolution of this case."
IRS Acting Special Agent in Charge, Damon Rowe, stated: "IRS Criminal Investigation will continue to make fighting political corruption a top priority in our office. Elected officials must realize that they are not above the law."
The case was investigated by agents from the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation Division. The federal agencies were assisted by the Metropolitan Crime Commission.The case was prosecuted by Strike Force Chief and Assistant U.S. Attorney Brian Klebba, and Assistant U.S. Attorneys Matt Chester, Daniel Friel, and Mimi Nguyen.
Former Eden Prairie Resident Sentenced for Role in $8.9 Million Mortgage FraudRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 28-year-old North Carolina woman was sentenced for her role in a scheme that defrauded mortgage lenders out of approximately $8.9 million. United States District Court Judge Susan Richard Nelson sentenced Ashley Elizabeth Prasil, formerly of Eden Prairie, to three years of probation and ordered her to perform 150 hours of community service on one count of conspiracy to commit wire fraud. Prasil was also ordered to pay more than $2.2 million in restitution to the lenders victimized through the scheme. Prasil was charged via Information on April 21, 2011, and pleaded guilty on May 19, 2011.
Prasil admitted that from December 18, 2006, through December of 2007, she conspired with others to defraud mortgage lenders who provided mortgages at the Cloud 9 Sky Flats (“Cloud 9”), a Minnetonka condominium development. The scheme involved finding buyers to apply for mortgage loans to purchase units in the development, with each buyer receiving a kickback of approximately 30 percent of the reported purchase price. The loan applications and forms submitted to the lenders did not disclose these kickbacks, resulting in buyers and others secretly getting a portion of the loan amounts back after closing. The kickbacks were returned to the buyers through an account controlled by Prasil’s co-defendant Sheri Delich, after a portion had been skimmed off for co-conspirators.
On February 15, 2013, Delich, age 47, of Apple Valley, was ordered to serve five years of probation and six months of home confinement on one count of conspiracy to commit mortgage fraud and one count of money laundering. Judge Nelson also sentenced former realtor My Dinh Lam, age 32, of Minneapolis, to three years of probation on one count of conspiracy to commit wire fraud for his role in finding buyers for the program.
More than 40 Cloud 9 units were sold through the scheme, and more than 80 percent of the loans have since defaulted.
Under the sentencing guidelines, Prasil could have been sentenced to more than two years in prison. The Court noted, however, that Prasil had provided assistance to the government and that her sentence was being reduced because of her cooperation in the investigation.
This case was the result of an investigation by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Robert M. Lewis.Former Acadiana Outreach Center Worker Pleads Guilty to Bribery Conspiracy in District Attorney OWI CaseRead the Press Release
LAFAYETTE, La: United States Attorney Stephanie A. Finley announced today that former Acadiana Outreach Center employee Sandra Degeyter, 61, of Lafayette, pleaded guilty to a one-count Bill of Information charging her with conspiracy to commit bribery.
This plea is related to the bribery investigation of former employees of the 15th Judicial District Attorney’s Office who accepted bribes in return for their participation in the facilitation of “immediate 894 pleas.” This is the fifth plea related to the bribery scheme.
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, including community service.
Degeyter made the following admissions in open court before Magistrate Judge Patrick J. Hanna as outlined in her factual stipulations entered during the guilty plea hearings today:
Degeyter worked as a case manager for Acadiana Outreach from March 2008 to October 2009. Beginning in 2008 and continuing until Feb. 17, 2012, Degeyter conspired to provide false and fraudulent Acadiana Outreach community service certificates to an unnamed, uncharged co-conspirator in exchange for money. The fraudulent certificates purportedly confirmed that “clients” of the co-conspirator had completed court-ordered community service, when in fact they had not. The co-conspirator paid Degeyter cash, $100 per certificate, and also made in-kind contributions to Acadiana Outreach for the false certificates. Degeyter admitted producing more than 50 false certificates between the spring of 2008 and October 2009.
After Degeyter left Acadiana Outreach in October of 2009, she asked Elaine Crump, who was still employed as a case manager at Acadiana Outreach, to assist her with continuing the fraudulent scheme. The two agreed that Degeyter would continue to create fraudulent Acadiana Outreach community service certificates, and in exchange for cash payments, Crump would permit Degeyter to sign Crump’s name on the fraudulent certificates. Crump previously pleaded guilty on Feb. 5, 2013, to misprision of a felony.
Degeyter began to provide cash payments to Crump ranging from $25 to $100, which was a portion of the cash Degeyter received from the co-conspirator. Degeyter provided Crump with the names of the people she had prepared false certificates for and the number of community service hours the certificates falsely stated had been completed. Degeyter did this so that if questioned by anyone, Crump could falsely verify the accuracy of the certificates.
Crump was laid off from Acadiana Outreach in September 2011. Shortly thereafter, Degeyter and Crump agreed that Degeyter would continue to create additional certificates and sign Crump’s name on them, but would backdate the documents to dates within Crump’s employment at Acadiana Outreach. In exchange, the co-conspirator would continue to pay Degeyter, and she would continue to share those payments with Crump. Degeyter’s payments to Crump continued until December of 2011.
Degeyter faces a maximum penalty of five years in prison, a $250,000 fine or both with up to three years of supervised release for the conspiracy count.
“The defendant’s actions were motivated by greed,” Finley said. “Her criminal activity has not only affected the justice system, but it has tarnished the good work of her former employer. Those involved in this case did not seem to consider the far-reaching damage that their actions would have on our community and the agencies that serve it.”
The FBI conducted the investigation. Assistant U.S. Attorneys John Luke Walker and Richard Willis are prosecuting the case.
Federal Jury Finds Minnesota Man Guilty of Conspiring to Distribute Controlled SubstancesRead the Press Release
MINNEAPOLIS— On Friday, in federal court, a jury found a Twin Cities’ man guilty of conspiring to distribute heroin, cocaine, and other controlled substances. Following a four-day trial, the jury convicted Eric Michelle Hunter, age 40, of Bloomington. He was found guilty of one count of conspiracy to distribute controlled substances. In addition Hunter was convicted of five counts of distribution of controlled substances, one count of possession of controlled substances with intent to distribute, two counts of using and carrying firearms during and in relation to drug-trafficking crimes, two counts of being a felon in possession of a firearm, and one count of attempted witness tampering. Hunter was charged on December 10, 2012, in a superseding indictment.
The evidence presented at trial proved that from September 14, 2011, through July 24, 2012, the defendant conspired with others to distribute controlled substances, primarily heroin. On five occasions, Hunter aided and abetted the distribution of controlled substances, including heroin and benzylpiperazine, commonly known as BZP. He also conspired to distribute numerous other controlled substances, including two other designer drugs with street names of “Foxy” and “Ivory Wave.”Moreover, on May 2, 2012, Hunter aided and abetted using and carrying a .357-caliber, semi-automatic pistol, and on May 22, 2012, he aided and abetted using and carrying an AA Arms, 9 millimeter machine gun. Because Hunter is a convicted felon, he is prohibited under federal law from possessing firearms at any time. He was convicted in Mississippi of grand larceny in 1990, possession of cocaine in 1994, felon in possession of a deadly weapon in 1994, and intimidation and assault on a law enforcement officer in 1995. In addition, he was convicted in federal court in the District of Minnesota in 1998 for possession with intent to distribute crack cocaine.
On October 9, 2012, co-defendant Rikki Lee Gilow, age 20, also of Bloomington, pleaded guilty to one count of conspiracy. In her plea agreement, Gilow admitted conspiring with Hunter and Jerry Anthony Harvey to distribute controlled substances. In addition, Gilow admitted assisting Hunter by selling two firearms to a government agent in connection with two separate drug transactions. Harvey is currently pending trial on the conspiracy charge and one count of aiding and abetting the distribution of heroin.
For his crime, the defendant faces a potential maximum penalty of life in prison on the conspiracy charge, 30 years on each of the distribution charges, and life for the possession with intent to distribute heroin charge. Hunter also faces a potential maximum penalty of life in prison on the firearm charges, a potential maximum penalty of ten years on each charge of being a felon in possession, and a potential maximum penalty of 20 years on the attempted witness tampering charge. United States District Court Judge Ann D. Montgomery will determine his sentence at a future hearing, yet to be scheduled.
This case was the result of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dakota County Drug Task Force. It was prosecuted by Assistant U.S. Attorneys Thomas M. Hollenhorst and Julie E. Allyn.Federal Judge Sentences Last of 5 Convicted of Smuggling More Than 1 Ton of MarijuanaRead the Press Release
McALLEN, Texas – A federal judge in McAllen has sentenced the last of five men who previously pleaded guilty to smuggling approximately 2,672 pounds of marijuana, United States Attorney Kenneth Magidson announced today.
Arnoldo Gonzalez-Chavez, 37, Juan Ornelas-Ahumeda, 31, and Jonathan Ricardo Alvarez-Martinez, 20, all of Mission; and Antonio Mendoza-Aguirre, 33, and Rafael Murguia-Mendoza, 42, both of McAllen, all previously pleaded guilty.
Today, Senior U.S. District Judge Randy Crane sentenced Gonzalez-Chavez to a term of 30 months in federal prison to be followed by three years of supervised release. Previously, Judge Crane handed Mendoza-Aguirre and Ornelas-Ahumeda to respective terms of 151 and 63 months, while Murguia-Mendoza and Alvarez-Martinez were each ordered to serve 70 months in federal prison.
The defendants were originally charged in an indictment returned on Jan. 24, 2012, and ultimately pleaded guilty to possessing marijuana with the intent to distribute it. Each of the five men admitted to participating in a stash house operation designed to receive and re-package shipments of marijuana in preparation for northbound transportation. Mendoza-Aguirre supervised the operation with the assistance of Murguia-Mendoza, recruited Ornelas-Ahumeda and Gonzalez-Chavez to wrap the marijuana in plastic and grease and hired Alvarez-Martinez to transport the marijuana.
On Jan. 11, 2012, agents arrested four of the defendants after they departed a stash house in Mission, where a subsequent search revealed 114 bundles containing 1,212 kilograms of marijuana. Further investigation led agents to another residence in McAllen where they arrested Alvarez-Martinez and discovered $49,000 in United States currency.
This case was investigated by the Drug Enforcement Administration and assisted by the McAllen and Mission Police Departments. The case is being prosecuted by Assistant United States Attorney Grady J. Leupold.
Erlanger Nursing Home and United States Government Settle Civil AllegationsRead the Press Release
COVINGTON, KY - Under a settlement agreement with the U.S. Government, Villaspring Health Care Center, Inc., and Carespring Health Care Management, LLC are further enhancing the care that they provide to residents of Villaspring’s nursing home in Erlanger, KY., announced United States Attorney Kerry Harvey.
The agreement: (1) embodies and effectuates quality of care enhancements at Villaspring, and (2) ensures that the U.S. Attorney’s Office remains apprised of those enhancements over the next three years. The settlement agreement is the first of its kind in Kentucky and resolves False Claims Act allegations brought against Villaspring and Carespring in a lawsuit filed in July 2011 for conduct alleged to have occurred between 2004 and 2008.
Under the agreement, Villaspring and Carespring will pay the U.S. Government $350,000. Villaspring and Carespring will also retain an independent compliance consultant, subject to the approval of the U.S. Attorney’s Office (USAO). The USAO will review Villaspring’s existing compliance program and its quality of care, and collaborate with Villaspring and Carespring on enhancements to the program and its patient care. Villaspring and Carespring will be responsible for the costs of these enhancements and the costs of the consultant.
Pursuant to the agreement, the consultant will provide quarterly reports to the U.S. Attorney’s Office, Villaspring, and Carespring.
“We are pleased to reach an agreement,” said United States Attorney for the Eastern District of Kentucky Kerry B. Harvey. “The focus of the agreement is ensuring that quality of care standards are met and the consultant provisions of the settlement will provide real benefits to Villaspring residents. The Judge’s ruling in this matter establishes that the failure of care theory will be an important tool available for use in appropriate cases.”
The case was handled by Assistant United States Attorneys Andrew Sparks and Paul McCaffrey, and Department of Health and Human Services Office of Inspector General attorney Jill Wright. The matter was referred to the U.S. Attorney’s Office by the Kentucky Attorney General’s Medicaid Fraud Abuse and Control Unit.
District Man Found Guilty of Murder in 2011 Slaying in Northeast WashingtonDefendant Came to Ex-Girlfriend’s House with Gun, Killed Her Brother and Shot at Her FatherRead the Press Release
WASHINGTON – Brandon Andrews, 31, of Washington, D.C., was found guilty by a jury today of second-degree murder while armed and other charges in the killing of a man in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Andrews was convicted by a jury in the Superior Court of the District of Columbia of the murder of his ex-girlfriend’s brother, Leonard Bigelow, 43. The jury also found him guilty of a charge of assault with a deadly weapon for shooting at Mr. Bigelow’s father; threats to injure, for threatening his ex-girlfriend, and related weapons offenses. The Honorable Robert E. Morin scheduled sentencing for April 26, 2013.
According to the government’s evidence, Andrews and Mr. Bigelow’s sister dated for approximately 10 months. However, on Aug. 22, 2011, she ended the relationship after Andrews threatened her while they were driving through the District of Columbia.
After the break-up, Andrews repeatedly tried to call and sent text messages to his ex-girlfriend, but she did not respond. Many of the defendant’s text messages included profanity, threats and demands that she answer him. Andrews also went by the Bigelow family home repeatedly, though he was uninvited and unwelcome.
On Aug. 23, 2011, for example, Mr. Bigelow was with his sister at their home when Andrews came by. Andrews and Mr. Bigelow argued when Mr. Bigelow informed Andrews that he was unwelcome and that his sister did not want to talk to him. Andrews’s ex-girlfriend became so concerned about his behavior that she sought a protective order from the Court the following day to keep Andrews away from her and her family.
On Aug. 25, Andrews demanded his clothing via text messages. The following day, the ex-girlfriend dropped off the clothes on a street corner near a homeless center in the 400 block of Second Street NW, where Andrews stood and resided. She did not give them to Andrews directly because she feared him. Later that day, Andrews sent text messages claiming that the clothes were taken by others before he could retrieve them. He also used profanity and threatened her property and her safety.
On the evening of Aug. 26, Andrews called and texted his ex-girlfriend multiple times, but she did not respond. Then, Andrews called her home. Mr. Bigelow answered the phone and told Andrews that his sister did not want to see him or speak to him. Andrews declared that he was coming to the home at approximately 10 p.m. Mr. Bigelow said that he would be there.
Andrews arrived about 10:45 p.m. with a loaded semi-automatic pistol in his pocket. He emerged from an alley and into the 1300 block of Emerald Street NE, and walked toward the house. Mr. Bigelow, his sister, and his father saw Andrews coming. Mr. Bigelow went onto the front porch with his father, while his sister called 911. Andrews stopped in front of the house and, without a word, shot at Mr. Bigelow and his father twice. He struck Mr. Bigelow with a bullet in the chest. Andrews then walked back the way he came. Mr. Bigelow collapsed and died that night from the gunshot wound.
On Aug. 27, 2011, law enforcement located Andrews at the corner of Fifth and F Streets NW. When he was arrested, he told the police that he had a gun in his pocket. The police found in his pocket the loaded.25 caliber semi-automatic pistol used to kill Mr. Bigelow.
At trial, Andrews claimed self-defense and alleged, among other claims, that at the time of the shooting Mr. Bigelow charged at him with some type of weapon in his hand. The government strongly disputed Andrews’ claim. According to the government’s evidence, Mr. Bigelow did not have a weapon and did not approach Andrews.
In announcing the verdicts, U.S. Attorney Machen commended the work of the detectives and officers of the Criminal Investigations Division and the First District of the Metropolitan Police Department, and the FBI Fugitive Task Force. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Steven Snyder, who secured the indictment in the case, Criminal Investigator John Marsh, Victim Witness Advocate Marcia Rinker, Victim Witness Specialist Katina Adams-Washington, Leif Hickling of the Litigation Technology Unit, and Paralegal Specialist Marian Russell. Finally, he praised the efforts of Assistant U.S. Attorney Shana L. Fulton who tried the case.
13-069Diamond Bar Man Pleads Guilty to Federal Fraud Charges for Running Day-Trading Ponzi That Raised $49 Million from InvestorsRead the Press Release
LOS ANGELES – The CEO and co-owner of a Diamond Bar investment company pleaded guilty this afternoon to two federal felony counts arising from his scheme to defraud investors who put $49 million into his bogus day-trading venture.
Syed Qaisar Madad pleaded guilty to wire fraud and tax fraud, admitting in court today that investors lost more than $31 million when his scheme collapsed in March 2011.
Starting in 2005, Madad collected money from investors who believed he generated consistent, substantial profits, and that their money would be safe and available upon request. During the 5½-year life of the scheme, Madad received more than $49 million from investors.
Madad, 66, a resident of Diamond Bar who ran his scheme through a company called Technology for Telecommunication and Multimedia, Inc. (TTM), portrayed himself as a successful investor who had not lost money in a single day of trading – except one day in 2006. Madad, who was profiled and interviewed in media serving the Pakistani-American community, told reporters and potential investors that he had developed a day-trading technique that was always profitable.
Over the course of the scheme, Madad sent victims monthly account statements that always showed gains in their accounts, and some victims gave Madad additional funds based solely on these account statements. Madad admitted today that the balances shown on these statements were false, and that, in fact, he lost more than $15 million in unsuccessful trading.
While Madad promised that he would not take any fees or compensation for managing the invested funds, Madad admitted today that he spent well over $15 million of investors’ money on personal expenses, including real estate, jewelry for his wife and daughters, vehicles and cash disbursements to himself and family members.
Although Madad returned approximately $17.7 million to investors, many of the payments he made were Ponzi payments, meaning that the money came from funds entrusted to him by other investors, rather than from profits or interest he had earned.
Madad also admitted today that he under-reported his income for tax year 2009 by approximately $4.9 million on tax returns filed with the Internal Revenue Service.
Madad’s scheme originally came to light two years ago when he was sued by one of his investors.
Prior to and following Madad’s arrest in October 2012, pursuant to court-authorized warrants, the government seized a Mercedes-Benz C63, numerous pieces of diamond and other precious gemstone jewelry, and funds that were traceable to investor money. As part of his agreement with the goverment, Madad has agreed to forfeit his Diamond Bar mansion, the Mercedez-Benz, 68 pieces of jewelry, and other luxury items, including silk and wool handmade oriental carpets. Madad also agreed to pay the IRS approximately $5 million in unpaid taxes for tax years 2006 through 2010.
Madad is scheduled to be sentenced by United States District Judge Percy Anderson on June 24. As a result of today’s guilty pleas, Madad faces a statutory maximum sentence of 23 years in federal prison.
The case against Madad is the result of an investigation by the Federal Bureau of Investigation and IRS - Criminal Investigation.
Release No. 13-026
Davenport Man Sentenced to 63 Month Imprisonment for Federal Firearms OffenseRead the Press Release
DAVENPORT, IA – On February 25, 2013, Fred Carl Chapman, age 30, of Davenport, Iowa, was sentenced to 63 months imprisonment, announced United States Attorney Nicholas A. Klinefeldt. United States District Judge Stephanie M. Rose also ordered Chapman to serve three years supervised release following imprisonment, and pay a $100 special assessment to the crime victim fund.
On May 19, 2012, the Davenport, Iowa, Police Department was contacted by employees of a downtown bar about a man in the bar armed with a gun. A police officer went to the bar and identified Chapman based on a bar employees’ description. When the officer asked Chapman to step outside, Chapman initially refused, but eventually went outside with the officer. The officer frisked Chapman, finding a semi-automatic pistol and ammunition in Chapman’s pocket. Chapman had several prior felony convictions, and was charged in United States District Court as a felon in possession of a firearm. Chapman entered a guilty plea on October 23, 2012.
This case was investigated by the Davenport, Iowa, Police Department and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Davenport Man Sentenced to 147 Months in Prison for Methamphetamine and Gun OffensesRead the Press Release
DAVENPORT, IA – On February 25, 2013, Leslie Wade Hardin, age 42, of Davenport, Iowa, was sentenced to 147 months imprisonment for conspiring to manufacture and distribute methamphetamine, and for possessing firearms in furtherance of a drug trafficking crime, announced United States Attorney Nicholas A. Klinefeldt. United States District Judge Stephanie M. Rose also sentenced Hardin to 5 years supervised release.
Between August 2011 and March 7, 2012, Hardin manufactured at least 50 grams of actual methamphetamine at a residence in Davenport, Iowa, owned by Steven Michael Gruetzmacher. In his plea agreement, Hardin admitted that he, Gruetzmacher, and Travis Lee Meier pooled together ingredients to manufacture methamphetamine and manufactured it at the residence on a regular basis. Some of the methamphetamine was consumed for personal use while some was distributed to various customers. Hardin also admitted to constructive possession of various firearms located at that residence, and that his possession of the firearms was with the intent that they advance, assist, or help the drug conspiracy.
Hardin’s co-conspirators have already been sentenced by United States District Court Judge Stephanie M. Rose. On February 1, 2013, Gruetzmacher, age 46, of Davenport, Iowa was sentenced to 180 months imprisonment and 5 years supervised release for conspiring to manufacture, and distribute methamphetamine, and for possessing firearms in furtherance of a drug trafficking crime. On November 29, 2012, Meier, age 21, of Davenport, Iowa was sentenced to 120 months imprisonment, and 4 years supervised release for conspiring to manufacture and distribute methamphetamine and for possessing firearms in furtherance of a drug trafficking crime.
The case was investigated by the United States Drug Enforcement Administration and the Davenport, Iowa, Police Department, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Coral Springs Firefighter Pleads Guilty to Armed Drug TraffickingRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, announced that Santiago Gonzalez, of Coral Springs, Florida, pled guilty today to one count of attempted distribution of five kilograms or more of cocaine and one count of possession of a firearm in furtherance of a drug trafficking crime. Sentencing for Gonzalez, a former firefighter, has been scheduled for May 7, 2013 at 10:00 a.m. At sentencing, Gonzalez faces a maximum possible statutory penalty of up to life in prison for these charges.
As set forth in the plea agreement, law enforcement began investigating Gonzalez in August, 2012 about Gonzalez/s alleged participation in previous armed kidnappings and robberies. During the investigation, Gonzalez met with a confidential informant who was purporting to be a drug trafficker. At this meeting, Gonzalez offered to provide protective services for future drug transactions. Thereafter, Gonzalez provided “armed protection” on four different occasions: September 6, 2012, October 12, 2012, December 11, 2012, and January 24, 2013. After completing each transaction, Gonzalez was paid cash for his services.
Mr. Ferrer thanked the investigative efforts of ATF. He also thanked the Broward Sheriff’s Office, the Florida Department of Law Enforcement, the North Miami Beach Police Department, the Coral Springs Police Department, and the Metro Broward HIDTA Task Force. This case is being prosecuted by Assistant U.S. Attorney Courtney L. Coker.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Charges Allege Trio Engaged in Home Buyer Credit ScamRead the Press Release
PHILADELPHIA - Darlene Johnson, 49, Sheryl McPhail, 49, and Tracey Hill, 49, all of Philadelphia, were charged today in a four count information alleging that they engaged in a scheme to defraud the Internal Revenue Service with false claims of First Time Home Buyer Credits (FTHBCs), announced United States Attorney Zane David Memeger. The defendants are each charged with one count of conspiracy to submit false claims to a government agency and submitting a false claim to a government agency.
According to the information, Johnson prepared tax returns for individuals whose names and identifying information she received from McPhail and Hill. In those returns, Johnson submitted false claims to the government, on behalf of clients, totaling approximately $390,680.65 and received FTHBCs totaling approximately $367,180.65. Johnson paid McPhail and Hill out of the proceeds from the returns where the FTHBC was fraudulently received. Johnson is charged with two additional counts of submitting a false claim to a government agency.
If convicted, Johnson faces a maximum possible sentence of 25 years imprisonment, a fine of up to $1 million, three years of supervised release, and a $400 special assessment. McPhail and Hill each face a maximum possible sentence of 15 years imprisonment, a fine of up to $500,000, three years supervised release, and a $200 special assessment.
The case was investigated by the Internal Revenue Service Criminal Investigations in conjunction with the Philadelphia Office of Inspector General. It is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr.
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PATTY HARTMAN, Media Contact, 215-861-8525BLM Employee Sentenced for Theft of Government PropertyRead the Press Release
Court Orders $71,973 in Restitution
BOISE – Katrina Telleria, 35, of Boise, Idaho, was sentenced today to 12 months in prison for theft of government property, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Telleria to serve three years of supervised release and pay restitution of $71,973 to the Bureau of Land Management. On December 17, 2012, Telleria pleaded guilty to three counts of theft of government gift cards, one count of making a false statement to a department or agency of the United States, and one count of theft of government electronics equipment.
According to the plea agreement, from 2008 to 2011, Telleria was employed as a Bureau of Land Management (BLM) administrative assistant authorized to use a government-issued MasterCar to make purchases for office supplies, firefighting operations, and administrative purposes, including an incentive gift card program in the BLM’s Boise District Office Fire Program. According to the plea agreement, the gift cards purchased by Telleria were to be distributed to district office fire supervisors to give as an award to employees. Telleria instead used her government-issued MasterCard to purchase “general-use gift cards” (American Express cards, Visa cards, and cards issued by MasterCard), which she then stole and appropriated to her own personal use. According to the plea agreement, Telleria admitted that on at least 38 occasions, she acquired the general-use gift cards and specific electronic items on her government MasterCard, and then stole the gift cards and the electronic property. Telleria further agreed that total gift card losses to the government amount to $71,973. The government will receive full restitution under the court’s order.
“Ms. Telleria violated her public trust for personal gain,” said Olson. “Her conviction and sentence sends the strong message that those responsible for government resources have an obligation to all taxpayers to act solely in the public interest. I commend the BLM for a strong investigation.”
“After a thorough investigation by BLM's Law Enforcement Office and the U.S. Attorney's Office, a government employee has been convicted for the fraudulent diversion of government funds,” said BLM State Director Steve Ellis. “I am proud of the diligence and hard work of these law enforcement officers and the hundreds of BLM employees who serve in Idaho. That any governmen employee would consider their own personal gain ahead of their solemn public trust is unfortunate. This investigation and its outcome show that as public servants we will neither whitewash nor tolerate employee conduct that diverts public funds for personal gain.”
The case was investigated by the BLM's Office of Law Enforcement and Security.
Atlanta Man Sentenced for Multi-Million Dollar Fraud SchemesRead the Press Release
Defendant Refused To Appear In Court During Trial And Sentencing
ATLANTA – An Atlanta man was sentenced today by United States District Judge Julie E. Carnes to 30 years on charges of bank fraud, credit card fraud, and aggravated identity theft. Jean-Daniel Perkins, 37, of Atlanta, Georgia was convicted of defrauding American Express, SunTrust Bank, and hundreds of individual credit card holders.
United States Attorney Sally Quillian Yates said of today’s sentencing, “This defendant was a habitual fraudster and a world-class manipulator. He bought, sold, and traded in other people’s personal information to enrich himself, and he tried to manipulate the court system to his own advantage. Today’s sentence reflects the seriousness of his crimes.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI remains committed in conducting such investigations that help build solid criminal prosecutions against aggressive fraudsters such as Mr. Perkins. Today’s sentencing not only holds Mr. Perkins accountable for his actions but puts an end to his reckless victimization of others through his fraudulent financial schemes.”
Perkins was sentenced to 30 years, to be followed by 5 years of supervised release. He was also ordered to pay $510,509 in restitution. Perkins was convicted on June 27, 2011 after a five-day jury trial.
Judge Carnes orally pronounced the sentence on a “tentative” basis because Perkins refused to leave his jail cell to be escorted to the courtroom for the sentencing hearing. Perkins further refused to meet with his lawyer to discuss the potential sentence.
Perkins, who also was is in custody at the time of his trial, refused to attend court during the trial as well. Instead, he viewed a live video and audio feed of the proceedings while remaining in a cell at the courthouse. Because Perkins was not present at the sentencing, Judge Carnes gave him 30 days to file any objections to her oral sentence, after which it will become final.
According to United States Attorney Yates and the evidence and testimony at trial and sentencing: From November 2008 through February 2010, Perkins executed several different fraud schemes in Atlanta. An undercover FBI agent, posing as an employee of a company with financial data, made contact with Perkins, offering to make the sensitive financial data available to Perkins. The undercover agent ultimately met in person with Perkins, who gave the agent a dozen counterfeit credit cards, and the two discussed a wide variety of criminal schemes involving financial data and credit cards. The FBI agent recorded approximately 30 telephone calls with Perkins in which they discussed the schemes, and how the maximum amounts of money could be withdrawn from victim financial institutions and their customers.
The evidence at trial showed that, in one of his fraud schemes, Perkins purchased information needed to make credit cards, such as account numbers, from a source in Ukraine. He then encoded credit cards with the data and used the cards. The dozen credit cards Perkins gave to the FBI agent were in fact encoded with information obtained from the source in Ukraine.
The evidence at trial also showed that from February 2009 through February 2010, Perkins engaged in another fraud scheme in which he gained internal SunTrust account information and impersonated the account holders, resulting in the transfer of money from victim accounts to accounts under his control. In one instance involving an account held by a local construction company, Perkins impersonated the company’s president, signed up for online banking services from SunTrust, and authorized transfers of over $3,500,000 from the company’s account to approximately 100 accounts under his control. Fortunately, SunTrust was able to recover the transferred money before Perkins spent it.
In yet another fraud scheme, Perkins set up numerous fictitious merchant accounts with American Express. The evidence at trial showed that Perkins set up the merchant accounts at American Express to allow him to accept American Express credit cards as payment for nonexistent goods and services. Perkins, using stolen American Express credit card account numbers, then ran American Express credit card transactions through the merchant accounts, resulting in American Express paying millions of dollars to the fictitious merchants. The American Express credit cards used by Perkins belonged to hundreds of individual credit card holders.
On the day of Perkins’ arrest, law enforcement officials recovered dozens of counterfeit credit cards from Perkins, as well as digital media connecting Perkins to the fraud schemes. On the same day, law enforcement seized from Perkins’ apartment hundreds of counterfeit credit cards; items used to make counterfeit credit cards; including a device used for encoding cards with stolen credit card information; machines used to make counterfeit identification cards; items purchased with counterfeit credit cards; and additional digital evidence linking Perkins to several of the fraud schemes. In total, Perkins had approximately 100,000 credit card numbers on his digital devices.
This case was investigated by Special Agents of the Federal Bureau of Investigation and the Duluth Police Department.
Former Assistant United States Attorneys Robert McBurney and Nick Oldham, and Assistant United States Attorneys Lawrence Sommerfeld and Kurt Erskine prosecuted the case.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Army Private Pleads Guilty to First Degree Murder of Ten-Year-Old Boy at Fort Sill Army PostRead the Press Release
Lawton, Oklahoma – Today, CONNELL C. WILLIAMS, 33, from Virginia, has pled guilty to first degree murder in the starvation death of a ten-year-old boy on Fort Sill Army Post, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
"Marcus was a ten-year-old boy who was robbed of his life and subjected to a horrific and agonizing death by starvation," said U.S. Attorney Sanford C. Coats. "Although nothing can bring Marcus back, I am gratified that Connell Williams has accepted responsibility for his crime. By pleading guilty, he will be in a federal prison cell for the rest of his life and never again harm a child. I thank the investigators and the prosecution team who worked tirelessly to seek and obtain justice for Marcus in this case."
Williams, an enlisted member of the United States Army, was assigned as a PFC to the 214th Fires Brigade at Fort Sill in Comanche County, Oklahoma, in August 2010. Court proceedings showed that in September 2010, CANDICE C. HOLLOWAY, 32, from Norfolk, Virginia, and her two children moved into Fort Sill military housing with Williams. Williams and Holloway were not married and Williams is not the biological father of the two children. From early 2011 through May of 2011, Williams and Holloway intentionally withheld food from Marcus as a form of punishment, which ultimately resulted in his death on May 5, 2011. Marcus was ten-years-old at the time of his death.
Williams and Holloway were charged by indictment with first degree child abuse murder on September 7, 2011. On April 16, 2012, Holloway pled guilty to first degree murder in exchange for an agreement to serve a 30 year term in prison, followed by a five years of supervised release, and to cooperate with the prosecution and testify against Williams at his trial.
The Department of Justice originally sought the death penalty against Williams. The trial began last week and Holloway testified against Williams last Friday. In exchange for Williams’ plea of guilty to first degree murder and acceptance of a life sentence, the Department of Justice agreed to withdraw the notice to seek the death penalty. The Court accepted this guilty plea early this morning and Williams will receive a sentence of life without the possibility of release.
This case was investigated by the Federal Bureau of Investigation and the United States Army Criminal Investigation Division. The case is being prosecuted by United States Attorney Sanford C. Coats and Assistant U.S. Attorneys Randal A. Sengel and Robert A Bradford.
Alvin Man Gets 27 Years for Multiple Bank Fraud ConvictionsRead the Press Release
HOUSTON — Patrick Cody Morgan, 46, of Alvin, has been sentenced to 27 years in federal prison for his convictions on multiple counts of bank fraud, United States Attorney Kenneth Magidson announced today. A federal jury sitting in Houston found Morgan guilty on Oct. 30, 2012, of conspiracy to commit bank fraud and nine counts of bank fraud following two days of trial and less than three hours of deliberation.
Today, U.S. District Judge Lynn N. Hughes, who presided over the trial, handed Morgan a total sentence of 324 months to be followed by five years of supervised release. Morgan was also ordered to pay restitution in the amount of $25,277,802.
At trial, the government presented evidence that from July 2004 and continuing through September 2007, Morgan, along with his co-conspirators, participated in a scheme to defraud financial institutions insured by the Federal Deposit Insurance Corporation (FDIC) and residential mortgage lenders. Morgan would locate condominium units in the Houston area from a builder or developer. He would then set up trust accounts with names similar to the condominiums through which the title to pass. Co-defendants would recruit individuals, also known as straw buyers with good credit to act as borrowers in applications for residential mortgage loans to purchase one or more of the properties, which would ultimately go into foreclosure because of the failure to pay the loans.
Within the overall scheme, there were more than 100 properties with a loan amount of more than $39 million. The loss amount was determined to be more than $25 million.
Co-defendants John Elias, 44, Reginald Anderson, 41, Viktor Ly , 43, and Christopher Pearson, 34, all of Houston, previously pleaded guilty to conspiracy to commit bank fraud and will be sentenced on various dates in March and April 2013. Minh Vu, 41, also of Houston, was sentenced to 60 months prison on Feb. 19, 2013.
The case was investigated by the Internal Revenue Service - Criminal Investigation and the FBI and is being prosecuted by Assistant U.S. Attorneys Jennifer Lowery and Carolyn Ferko.
Alleged Aryan Brotherhood of Texas Leader <br /> Indicted on Federal Racketeering ChargesRead the Press Release
James Francis Sampsell has been indicted in Houston for his alleged role as a leader of a racketeering enterprise known as the Aryan Brotherhood of Texas (ABT), announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
The second superseding indictment returned on Wednesday, Feb. 20, 2013, by a federal grand jury in Houston charges Sampsell, aka “Skitz,” 50, of Midland, Texas, with conspiracy to engage in racketeering activity and possession with intent to deliver methamphetamine.
Sampsell’s co-defendants, who were previously charged for their alleged roles in the racketeering conspiracy, range from senior leaders to soldiers of the ABT, a “whites only,” prison-based gang with members operating inside and outside of state and federal prisons throughout Texas and elsewhere in the United States since at least the early 1980s. In total, the second superseding indictment charges 33 alleged members of the ABT.
According to court documents, the ABT has a detailed and uniform organizational structure, with territory divided into five regions, each run by a “general.” Four alleged ABT generals, Terry Ross Blake, 55, aka “Big Terry”; Larry Max Bryan, 51, aka “Slick”; William David Maynard, 42, aka “Baby Huey”; and Charles Lee Roberts, 68, aka “Jive,” were charged in the superseding indictment with conspiracy to participate in the racketeering activities of the ABT, among other charges. The second superseding indictment charges the fifth general, Sampsell, with conspiracy to participate in the racketeering activities of the ABT, among other charges.
In total, the second superseding indictment charges 33 alleged members of the ABT with conspiracy to participate in the racketeering activities of the ABT. Alleged members of the ABT are also charged with involvement in three murders, multiple attempted murders, kidnappings, assaults and conspiracy to distribute methamphetamine and cocaine. On Jan. 31, 2012, two previously indicted alleged gang members, Ben Christian Dillon, aka, “Tuff”, 40, of Houston, and James Marshall Meldrum, aka “Dirty,” 40, of Dallas, each pleaded guilty before U.S. District Judge Sim Lake in Houston.
According to court documents, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to court documents, previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT is alleged to have expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
The racketeering and drug conspiracy charges each carry a maximum penalty of life in prison. The murder-related charges carry maximum penalties of life in prison or the death penalty.
An indictment is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Department; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Tarrant County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Fort Worth, Texas, Police Department; San Antonio Police Department; Baytown, Texas, Police Department; Carrollton, Texas, Police Department; Alvin, Texas, Police Department; Montgomery County District Attorney’s Office; Atascosa County District Attorney’s Office; Harris County District Attorney’s Office; and the Kaufman County, Texas, District Attorney’s Office.
The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office for the Southern District of Texas.
24 February 2013
Wichita Man Sentenced to Five YearsOn Federal Firearms ChargeRead the Press Release
WICHITA, KAN. – A Wichita man was sentenced Monday to five years in federal prison for a firearms violation, U.S. Attorney Barry Grissom.
Jose Armando De Luna, 35, Wichita, Kan., pleaded guilty to one count of unlawful possession of firearms after a felony conviction. In his plea he admitted that on Sept. 6, 2013, when he was arrested in Wichita, he possessed 20 firearms including shotguns, rifles and handguns. At the time, he was prohibited by federal law from possessing firearms because of a prior felony conviction.
According to court documents, the investigation began in September 2013 when the Wichita Police Department arranged to buy methamphetamine from DeLuna at his residence in the 700 block of South Terrace. Police seized firearms belonging to him when they served search warrants at that residence and a residence in the 1800 block of south Green Acres.
Grissom commended the Wichita Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Alan Metzger for their work on the case.
Gang Member SentencedIn Dodge City Racketeering CaseRead the Press Release
WICHITA, KAN. - A member of a Dodge City street gang was sentenced Monday to 82 months in federal prison, U.S. Attorney Barry Grissom said.
Alfredo Beltran-Ruiz, 23, Dodge City, Kan., pleaded guilty to one count of aiding and abetting attempted murder, which was a violent crime in aid of racketeering. In his plea, he admitted that on March 15, 2011, he aided and abetted the attempted murder of a victim named Reyes Delira-Padilla by firing shots at the victim’s house at 1705 Ave. D in Dodge City. Beltran-Ruiz was a member of the Diablos Viejos gang and was affiliated with the Norteno street gang. Delira-Padilla was a member of the rival Sureno gang.
Beltran-Ruiz is one of 22 Norteno gang members who have been convicted on charges contained in a federal indictment filed May 2012. It was only the second time a federal RICO Act indictment (Racketeer Influenced and Corrupt Organizations Act) has been filed in Kansas. Two defendants are awaiting sentencing: Juan Torres and Jayson Vargas.
Grissom commended the Dodge City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ford County Sheriff's Office, the Ford County Attorney’s Office, the Kansas Bureau of Investigation, Assistant Aaron Smith and Assistant U.S. Attorney Lanny Welch for their work on the case.
22 February 2013
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary L. Hatton
www.usdoj.gov/usao/inn/ Fax: (219) 852-2770
South Bend, Indiana -- The United States Attorney’s Office announced the following activity in Federal Court:
INDICTMENTS:
Andre Bradford , 35, of South Bend, Indiana, was charged in an Indictment with 3 counts of distribution of heroin.These charges were filed as the result of an investigation by the Drug Enforcement Administration and the South Bend Police Department.This case has been assigned to and will be prosecuted by Assistant United States Attorney Joshua Kolar.
David Lee Robinson , 33, of South Bend, Indiana, was charged in an Indictment with 3 counts of distribution of heroin.These charges were filed as the result of an investigation by the Drug Enforcement Administration and the South Bend Police Department.This case has been assigned to and will be prosecuted by Assistant United States Attorney Joshua Kolar.
PLEAS:
Christopher Akens, 35, of Mishawaka, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of possession of child pornography.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 5/23/13.These charges were filed as a result of an investigation by the Federal Bureau of Investigation and the Indiana State Police.This case is being prosecuted by Assistant United States Attorney John Maciejczyk.
Deneen Lewis, 41, of South Bend, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of theft of government funds (social security benefits).Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 5/23/13.These charges were filed as a result of an investigation by the Social Security Administration.This case is being prosecuted by Assistant United States Attorney Barbara Brook.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Jeffrey Farmer, 42, of Knox, Indiana, was sentenced by District Judge Robert Miller, Jr. to 84 months imprisonment and 10 years of supervised release after pleading guilty to the felony offense of accessing with intent to view child pornography.According to documents filed in this case, Starke County Detectives obtained a state search warrant to search Farmer’s residence and seize computers and digital storage devices.Farmer admitted he used the computer to view digital images from the internet that depicted prepubescent minors or minors who had not attained the age of 12 years engaging in sexually explicit conduct. This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including ICE - Homeland Security Investigations.This case was prosecuted by Assistant United States Attorney John Maciejczyk.
Timothy Lewis, 41, of South Bend, Indiana, was sentenced by District Judge Robert Miller, Jr. to 51 months imprisonment and 3 years of supervised release after pleading guilty to the felony offenses of distribution of heroin and possession of a firearm in furtherance of a drug trafficking crime.According to documents filed in this case, Lewis was selling small quantities of heroin to people, including a confidential informant, in late 2011 and 2012. Police searched his home in June and found heroin and a loaded firearm. After Lewis was released on bond, he again sold heroin to the confidential informant. Police searched his home again in August finding heroin and another loaded firearm. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Metro Special Operations.This case was prosecuted by Assistant United States Attorney William Grimmer.
Darnell Jackson, 31, of Elkhart, Indiana, a defendant in the case US v Carlia Wells et al., was sentenced by District Judge Robert Miller, Jr. to 60 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the South Bend Police Department.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Jermaine Davis, 31, of South Bend, Indiana, was sentenced by District Judge Robert Miller, Jr. to 24 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.According to documents filed in this case, South Bend Police initiated a traffic stop for a traffic violation. As officers approached the vehicle, the driver Jermaine Davis and his two passengers fled the scene in the car. During the vehicle pursuit, a firearm and a bag of marijuana were tossed from the vehicle. South Bend Police recovered the marijuana and a Springfield XD40 pistol. Police also recovered more than $1,500 cash and a small amount of marijuana on the person of Jermaine Davis.Davis has a prior felony conviction for possession of cocaine. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the South Bend Police Department.This case was prosecuted by Assistant United States Attorney Donald Schmid.
John Hodowaniac, 60, of South Bend, Indiana, was sentenced by District Judge Jon DeGuilio to 60 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of attempted arson of a vehicle.According to documents filed in this case, Hodowaniac admitted that, along with his son Michael Hodowaniac and another person, he attempted to set fire to an automobile in exchange for a cash payment from this other person. He took substantial steps toward the execution of the plan to set fire to and maliciously destroy the automobile by directing that gasoline be put in a plastic bottle, traveling to the area where the automobile was located, and accepting cash for the arson. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the South Bend Police Department.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ FAX (219) 852-2770
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
INDICTMENT:
Lakita Lee, 35, of Gary, Indiana, was charged in an Indictment returned on 2/21/13 with theft of government property.These charges were filed as the result of an investigation by the Social Security Administration Office of the Inspector General.This case has been assigned to and will be prosecuted by Assistant United States Attorney Gary Bell and Emily Cremeans.
PLEAS:
Eddie Torres, 43, of East Chicago, Indiana, a defendant in the case US v Briseno et al., pled guilty before Chief Judge Philip Simon to the felony offense of conspiracy to participate in racketeering activity and conspiracy to possess with the intent to distribute cocaine and marijuana.Sentencing has been set for 12/5/13.These charges were filed as a result of an investigation by Bureau of Alcohol, Tobacco, Firearms, and Explosives, the East Chicago Police Department, and the Federal Bureau of Investigation, with assistance from the Gary Police Department, the Hammond Police Department and the Lake County HIDTA. This case is being prosecuted by Assistant United States Attorney David Nozick.
DISPOSITIONS:
Thomas R. Philpot, 55, of Highland, Indiana, was sentenced by Senior District Judge James Moody to 18 months imprisonment, a fine of $10,000 and 2 years of supervised release after being found guilty at trial of the felony offenses of mail fraud and theft from a federally funded program.According to documents filed in this case, Philpot, while serving in the elected capacity of Lake County Clerk, used IV-D incentive funds received by the Lake County Clerk’s office from the federal government as bonus money for himself without obtaining the authorization of the County Council as required by law.Philpot was ordered to self-surrender to the Bureau of Prisons or the US Marshal’s Service on 4/3/13 to begin execution of his sentence.This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Philip Benson.
Thomas Scott Spangle, 32, of Lake Village, Indiana, was sentenced by Chief Judge Philip Simon to 84 months imprisonment and 15 years of supervised release after pleading guilty to the felony offense of distribution of child pornography.According to documents filed in this case, in May 2010, an undercover FBI agent working in Miami, Florida was using the peer-to-peer file sharing program “Gigatribe” to download child pornography files being distributed by others online. The undercover officer browsed the shared files and observed many depictions of children engaging in sexually explicit activity.During the download, the undercover agent used a program to identify the IP address being utilized, which was later identified as belonging to Spangle.Spangle’s computer equipment was seized and a full forensic examination was conducted on each piece of equipment.The examination revealed that Spangle collected a total of 5,269 images and 504 videos depicting minor children being sexually exploited and abused. Because each video counts as 75 images for Guideline calculation purposes, Spangle possessed the equivalent of 43,069 child pornography images.If played back to back, the videos in Spangle’s collection would run for 26 hours, 44 minutes and 58 seconds This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the Federal Bureau of Investigation, the Indiana State Police and the Lafayette Police Department.This case was prosecuted by Assistant United States Attorney Jill Koster.
Martin Jonassen, 57, of Elwood, Kansas, was sentenced by Senior District Judge James Moody to 480 months imprisonment and 5 years of supervised release after being found guilty at trial of the felony offenses of kidnapping and intimidation of a witness.According to documents filed in this case, Jonassen kidnapped his 21 year old daughter in Missouri and drove her to Portage, Indiana, where she tried to escape from him by running naked from the bathroom of their rented motel room to a nearby liquor store where she begged for help.Jonassen chased her and physically dragged her out of the store and forced her into his waiting vehicle.After his arrest, Jonassen embarked on a relentless campaign of calls and letters in which he employed manipulation and persuasion to try to get her to retract her statements to law enforcement.The government admitted evidence of that conduct at trial including numerous recorded telephone calls during which Jonassen offered cash or other bribes to her, and copies of letters Jonassen sent to the victim and others wherein he urged her (or others to encourage her) to retract her prior statements to law enforcement. This case was the result of an investigation by the Federal Bureau of Investigation and the Portage Police Department.This case was prosecuted by Assistant United States Attorney Jill Koster.
Victor Meza, Jr., 24, of Hammond, Indiana, a defendant in the case US v Vargas et al., was sentenced by Senior District Judge Rudy Lozano to 96 months imprisonment and 5 years of supervised release after pleading guilty to the felony offenses of conspiracy to participate in racketeering activity and conspiracy to possess with the intent to distribute and distribute cocaine and marijuana.This case was the result of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the National Gang Targeting, Enforcement & Coordination Center (GangTECC); the National Gang Intelligence Center; the Chicago Police Department; the Griffith Police Department; the Hammond Police Department; the Highland Police Department; the Lake County, Indiana, HIDTA and the Houston, Texas Police Department.This case was prosecuted by Trial Attorney Joseph Cooley of the Department of Justice Criminal Division and Assistant United States Attorney David Nozick.
Osvaldo Herrera, 23, of Calumet City, Illinois, was sentenced by Senior District Judge James Moody to 45 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of distribution of cocaine.This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Joshua Kolar.
Nicholas Jackson, 21, of Lafayette, Indiana, a defendant in the case US v Robinson et al., was sentenced by Senior District Judge James Moody to 18 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of being an unlawful user/addict in possession of firearms. Jackson, an unlawful user of and addicted to a controlled substance (marijuana), possessed a .20 gauge shotgun with an obliterated serial number. After learning that his co-defendants were arrested for a burglary, Jackson called his friend to pick up the gun so that it could be disposed of in the Wabash River.Subsequently, after an interview with ATF agents, the shotgun was located and recovered. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Tippecanoe County Police Department and the Lafayette Police Department.This case was prosecuted by Assistant United States Attorney Nicholas Padilla.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ FAX (219) 852-2770
Fort Wayne, Indiana- The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
Jemorris Sewell, 29, of Fort Wayne, Indiana, pled guilty before Magistrate Judge Roger Cosbey to the felony offenses of conspiracy to distribute and possession with the intent to distribute crack cocaine.Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. These charges were filed as a result of an investigation by the Federal Bureau of Investigation, the Indiana State Police, the Fort Wayne Police Department, the Allen County Police Department, the Allen County Drug Task Force and the New Haven Police Department.This case is being prosecuted by Assistant United States Attorney Lesley Miller Lowery.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Virginia Man Charged with Stealing Social Security NumberRead the Press Release
PHILADELPHIA - Ronnie Lee Durham, a/k/a “Ronnie Lee Johnson,” and “R.P.J.,” 50, of Alexandria, Virginia and formerly of Feasterville, PA is charged by Indictment, unsealed yesterday, with stealing and using the social security number of another person, announced United States Attorney Zane David Memeger. Durham is charged with four counts of Social Security Fraud and one count of Aggravated Identity Theft. He was arrested in Virginia.
According to the indictment, the defendant used the Social Security number and date of birth of an individual residing in another state to open bank accounts, obtain a debit card, and obtain employment. In March 2011, Durham, using the name Ronnie Lee Johnson, went to work for a company in Langhorne, PA, where he had access to client files. Between March and April of 2011, Durham allegedly accessed the identifying information of “RJP,” who resided in Mississippi, and rented an apartment in Feasterville, PA, using RJP’s date of birth and social security number. It is further alleged that Durham opened bank and credit card accounts using RJP’s information and also secured a job with a New Jersey company using that information.
If convicted, the defendant faces a maximum possible sentence of 22 years imprisonment, a three-year period of supervised release, a $1.25 million fine, and a $500 special assessment.The case was investigated by the Social Security Administration, Office of Inspector General, the Diplomatic Security Service, and the Lower Southampton Police Department. It is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525United States Joins Lawsuit Alleging Lance Armstrong and Others Caused the Submission of <br /> False Claims to the U.S. Postal ServiceRead the Press Release
The Department of Justice announced today that the government has joined a civil lawsuit alleging that Lance Armstrong, Johan Bruyneel and Tailwind Sports LLC and Tailwind Sports Corporation (Tailwind) submitted or caused the submission of false claims to the U.S. Postal Service (USPS) in connection with its sponsorship of a professional bicycle racing team by regularly employing banned substances and methods to enhance their performance, in violation of the USPS sponsorship agreements.
From 1996 through 2004, the USPS sponsored a professional cycling team owned by Tailwind and its predecessors. Lance Armstrong was the lead rider on the team, and between 1999 and 2004, he won six consecutive Tour de France titles as a member of the USPS-sponsored team. Johan Bruyneel was the directeur sportif, or manager, of the cycling team.
The sponsorship agreements gave the USPS certain promotional rights, including the right to prominent placement of the USPS logo on the cycling team’s uniform. Each of the agreements required the team to follow the rules of cycling’s governing bodies, which prohibited the use of certain performance enhancing substances and methods. Between 2001 and 2004 alone, the Postal Service paid $31 million in sponsorship fees.
The lawsuit joined today by the government alleges that riders on the USPS-sponsored team, including Armstrong, knowingly caused the USPS agreements to be violated by regularly employing banned substances and methods to enhance their performance. The lawsuit further alleges that Bruyneel knew that team members were using performance enhancing substances and facilitated the practice.
The government today notified the court that it is joining this lawsuit against Armstrong, Bruyneel and Tailwind, and will file its formal complaint within 60 days.
“The Postal Service contract with Tailwind required the team to enter cycling races, wear the Postal Service logo, and follow the rules banning performance enhancing substances – rules that Lance Armstrong has now admitted he violated,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Civil Division of the Department of Justice. “Today’s action demonstrates the Department of Justice’s steadfast commitment to safeguarding federal funds and making sure that contractors live up to their promises.”
“Lance Armstrong and his cycling team took more than $30 million from the U.S. Postal Service based on their contractual promise to play fair and abide by the rules – including the rules against doping,” said Ronald C. Machen Jr., U.S. Attorney for the District of Columbia. “The Postal Service has now seen its sponsorship unfairly associated with what has been described as ‘the most sophisticated, professionalized, and successful doping program that sport has ever seen.’ This lawsuit is designed to help the Postal Service recoup the tens of millions of dollars it paid out to the Tailwind cycling team based on years of broken promises. In today’s economic climate, the U.S. Postal Service is simply not in a position to allow Lance Armstrong or any of the other defendants to walk away with the tens of millions of dollars they illegitimately procured.”
“The Postal Service conducts business with many different contractors and subcontractors, with a large majority of them providing a much needed service and fulfilling their contractual duties. It is critical that public confidence in contractor performance remains high. When that public trust is compromised, as occurred in this case, the Office of Inspector General will fully investigate,” said David C. Williams, Inspector General, U.S. Postal Service, and Office of Inspector General.
“The Postal Service strongly supports intervention by the Department of Justice in this matter and a vigorous pursuit of this case,” said Postal Service General Counsel and Executive Vice President Mary Anne Gibbons. “The defendants agreed to play by the rules and not use performance enhancing drugs. We now know that the defendants failed to live up to their agreement, and instead knowingly engaged in a pattern of activity that violated the rules of professional cycling and, therefore, violated the terms of their contracts with the Postal Service. For that reason, the Postal Service fully agrees with the decision by the Department of Justice to seek appropriate damages under the False Claims Act.”
For many years, including during the USPS sponsorships, Armstrong and others repeatedly denied that the team used performance enhancing substances or methods. Yet on Oct. 10, 2012, the U.S. Anti-Doping Agency (USADA) issued a report concluding that Armstrong used banned performance enhancing substances starting in at least 1998 and continuing throughout his professional career, and that he pressured and helped his teammates to engage in similar conduct. Accordingly, USADA disqualified all of his competitive results since Aug. 1, 1998, including his seven Tour de France victories, and banned him from sport for life pursuant to the World Anti-Doping Code.
In a recently-televised interview with Oprah Winfrey, Armstrong contradicted his earlier denials and admitted that he used banned substances and methods throughout his career, starting in the mid-1990s. In particular, he admitted having engaged in banned practices during each of his seven Tour de France victories, including the six he won as a USPS rider. Armstrong explained that he avoided detection by anti-doping authorities by carefully timing his use of banned drugs so that they would leave his system prior to his undergoing cycling’s required periodic drug testing.
The lawsuit joined by the United States was filed by Floyd Landis, a former rider and teammate of Armstrong on the USPS sponsored team from 2002 through 2004. The lawsuit was filed under the False Claims Act, which imposes liability on those who submit false claims for government funds, and provides for the recovery of three times the government’s damages, plus civil penalties. The False Claims Act contains a qui tam or whistleblower provision, which permits private parties to sue on behalf of the United States for false claims and share in any recovery. The False Claims Act permits the government to investigate the allegations and intervene, or decline to intervene in the whistleblower’s lawsuit. While the government notified the court that it was joining the lawsuit’s allegations as to Armstrong, Bruyneel, and Tailwind, it advised the court that it was not intervening in the case as to several other defendants named in the complaint.
Principal Deputy Assistant Attorney General Delery and U.S. Attorney Machen commended the coordinated effort of the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Columbia, and the USPS Office of Inspector General and Office of General Counsel, in their investigation of this matter.
The lawsuit, filed in the U.S. District Court for the District of Columbia, is captioned United States ex rel. Landis v. Tailwind Sports Corporation, et al. The claims made in the complaint are only allegations and do not constitute a determination of liability. Trial Attorney Robert Chandler of the Department of Justice’s Civil Division and Assistant U.S. Attorneys Darrell Valdez and Mercedeh Momeni of the U.S. Attorney’s Office for the District of Columbia are representing the government.
United States Joins Lawsuit Alleging Lance Armstrong and OthersCaused the Submission of False Claims to the U.S. Postal ServiceRead the Press Release
WASHINGTON – The Department of Justice announced today that the government has joined a civil lawsuit alleging that Lance Armstrong, Johan Bruyneel and Tailwind Sports LLC and Tailwind Sports Corporation (Tailwind) submitted or caused the submission of false claims to the U.S. Postal Service (USPS) in connection with its sponsorship of a professional bicycle racing team by regularly employing banned substances and methods to enhance their performance, in violation of the USPS sponsorship agreements.
From 1996 through 2004, the USPS sponsored a professional cycling team owned by Tailwind and its predecessors. Lance Armstrong was the lead rider on the team, and between 1999 and 2004, he won six consecutive Tour de France titles as a member of the USPS-sponsored team. Johan Bruyneel was the directeur sportif, or manager, of the cycling team.
The sponsorship agreements gave the USPS certain promotional rights, including the right to prominent placement of the USPS logo on the cycling team’s uniform. Each of the agreements required the team to follow the rules of cycling’s governing bodies, which prohibited the use of certain performance enhancing substances and methods. Between 2001 and 2004 alone, the Postal Service paid $31 million in sponsorship fees.
The lawsuit joined today by the government alleges that riders on the USPS-sponsored team, including Armstrong, knowingly caused the USPS agreements to be violated by regularly employing banned substances and methods to enhance their performance. The lawsuit further alleges that Bruyneel knew that team members were using performance enhancing substances and facilitated the practice.
The government today notified the court that it is joining this lawsuit against Armstrong, Bruyneel and Tailwind, and will file its formal complaint within 60 days.
“The Postal Service contract with Tailwind required the team to enter cycling races, wear the Postal Service logo, and follow the rules banning performance enhancing substances – rules that Lance Armstrong has now admitted he violated,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Civil Division of the Department of Justice. “Today’s action demonstrates the Department of Justice’s steadfast commitment to safeguarding federal funds and making sure that contractors live up to their promises.”
“Lance Armstrong and his cycling team took more than $30 million from the U.S. Postal Service based on their contractual promise to play fair and abide by the rules – including the rules against doping,” said Ronald C. Machen Jr., U.S. Attorney for the District of Columbia. “The Postal Service has now seen its sponsorship unfairly associated with what has been described as ‘the most sophisticated, professionalized, and successful doping program that sport has ever seen.’ This lawsuit is designed to help the Postal Service recoup the tens of millions of dollars it paid out to the Tailwind cycling team based on years of broken promises. In today’s economic climate, the U.S. Postal Service is simply not in a position to allow Lance Armstrong or any of the other defendants to walk away with the tens of millions of dollars they illegitimately procured.”
“The Postal Service conducts business with many different contractors and subcontractors, with a large majority of them providing a much needed service and fulfilling their contractual duties. It is critical that public confidence in contractor performance remains high. When that public trust is compromised, as occurred in this case, the Office of Inspector General will fully investigate,” said David C. Williams, Inspector General, U.S. Postal Service, and Office of Inspector General.
“The Postal Service strongly supports intervention by the Department of Justice in this matter and a vigorous pursuit of this case,” said Postal Service General Counsel and Executive Vice President Mary Anne Gibbons. “The defendants agreed to play by the rules and not use performance enhancing drugs. We now know that the defendants failed to live up to their agreement, and instead knowingly engaged in a pattern of activity that violated the rules of professional cycling and, therefore, violated the terms of their contracts with the Postal Service. For that reason, the Postal Service fully agrees with the decision by the Department of Justice to seek appropriate damages under the False Claims Act.”
For many years, including during the USPS sponsorships, Armstrong and others repeatedly denied that the team used performance enhancing substances or methods. Yet on Oct. 10, 2012, the U.S. Anti-Doping Agency (USADA) issued a report concluding that Armstrong used banned performance enhancing substances starting in at least 1998 and continuing throughout his professional career, and that he pressured and helped his teammates to engage in similar conduct. Accordingly, USADA disqualified all of his competitive results since Aug. 1, 1998, including his seven Tour de France victories, and banned him from sport for life pursuant to the World Anti-Doping Code.
In a recently-televised interview with Oprah Winfrey, Armstrong contradicted his earlier denials and admitted that he used banned substances and methods throughout his career, starting in the mid-1990s. In particular, he admitted having engaged in banned practices during each of his seven Tour de France victories, including the six he won as a USPS rider. Armstrong explained that he avoided detection by anti-doping authorities by carefully timing his use of banned drugs so that they would leave his system prior to his undergoing cycling’s required periodic drug testing.
The lawsuit joined by the United States was filed by Floyd Landis, a former rider and teammate of Armstrong on the USPS sponsored team from 2002 through 2004. The lawsuit was filed under the False Claims Act, which imposes liability on those who submit false claims for government funds, and provides for the recovery of three times the government’s damages, plus civil penalties. The False Claims Act contains a qui tam or whistleblower provision, which permits private parties to sue on behalf of the United States for false claims and share in any recovery. The False Claims Act permits the government to investigate the allegations and intervene, or decline to intervene in the whistleblower’s lawsuit. While the government notified the court that it was joining the lawsuit’s allegations as to Armstrong, Bruyneel, and Tailwind, it advised the court that it was not intervening in the case as to several other defendants named in the complaint.
Principal Deputy Assistant Attorney General Delery and U.S. Attorney Machen commended the coordinated effort of the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Columbia, and the USPS Office of Inspector General and Office of General Counsel, in their investigation of this matter.
The lawsuit, filed in the U.S. District Court for the District of Columbia, is captioned United States ex rel. Landis v. Tailwind Sports Corporation, et al. The claims made in the complaint are only allegations and do not constitute a determination of liability. Trial Attorney Robert Chandler of the Department of Justice’s Civil Division and Assistant U.S. Attorneys Darrell Valdez and Mercedeh Momeni of the U.S. Attorney’s Office for the District of Columbia are representing the government.
13-066Ukrainian National Pleads Guilty to Conspiracy to Export Night Vision EquipmentRead the Press Release
Volodomyr Ponomarenko, a citizen of Ukraine, pled guilty today at the federal courthouse in Brooklyn, New York, before the Honorable Edward R. Korman to conspiring to violate the Arms Export Control Act by attempting to export military-grade night vision equipment from the United States to Ukraine. Ponomarenko was arrested while attempting to enter the United States on March 23, 2011.
The plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Lisa Monaco, Assistant Attorney General for National Security; James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York; and Kenneth Siegler, Resident Agent-in-Charge, Defense Criminal Investigative Service (DCIS).
As alleged in the indictment and the underlying criminal complaint, the defendant purchased military-grade night vision equipment and other restricted weapons components from dealers in the United States and then attempted to export that equipment to Ukraine without the required license. As part of the export scheme, the defendant used straw purchasers in the United States to purchase the equipment. In exchange for a fee, the straw purchasers shipped the items to various freight forwarding companies for export to the defendant in Ukraine. Pursuant to the investigation, however, the night vision scopes and other weapons components were intercepted by law enforcement at John F. Kennedy International Airport.
The export of military-grade night vision equipment requires a license from the United States Department of State, and those who willfully seek to circumvent that requirement face significant criminal penalties. When sentenced, Ponomarenko faces up to 5 years in prison.
“The defendant tried to circumvent laws that protect our national security by preventing specialized technologies from falling into the wrong hands,” stated United States Attorney Lynch. “As today’s conviction shows, the United States will vigorously prosecute violations of our laws that help maintain the superiority of our armed forces on land, sea, and air.” Ms. Lynch expressed her grateful appreciation to U.S. Immigration and Customs Enforcement, Homeland Security Investigations, New York, and added that the government’s investigation is ongoing.
“Today’s guilty plea ends a conspiracy to willfully violate the customs laws of the United States and further safeguards America’s sensitive military technology,” said James T. Hayes Jr., Special Agent-in-Charge of HSI New York. “HSI agents and our partners with DCIS and the United States Attorney’s Office expertly foiled a potentially dangerous smuggling scheme.”
“Today’s guilty plea demonstrates the ongoing commitment of the Defense Criminal Investigative Service, in cooperation with our law enforcement partners and the U.S. Attorney’s Office, to aggressively pursue those intent on acquiring and illegally exporting U.S. military technology. Any attempt to circumvent the export laws will be fully investigated and prosecuted to ensure that America’s Warfighters maintain their tactical and strategic advantage around the world,” stated DCIS Resident Agent-in-Charge Siegler.
The government’s case is being prosecuted by Assistant United States Attorneys David Sarratt and Seth DuCharme, with assistance from Trial Attorney David Recker of the Department of Justice Counterespionage Section.
The Defendant:
VOLODOMYR PONOMARENKO
Age: 43USP-Marion Inmate Sentenced for Assaulting A Correctional OfficerRead the Press Release
Henry Ingram, 34, an inmate at the United States Penitentiary at Marion, Illinois, was sentenced today in United States District Court in Benton to a term of 42 months’ imprisonment for assaulting a correctional officer at that facility, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The offense occurred on August 21, 2012. Ingram pled guilty to the single count indictment charging him with assault on November 19th.
Evidence supporting the guilty plea and sentence showed that Ingram struck a correctional officer in the face with his fist after the correctional officer conducted a pat-down search of Ingram in a hallway at the prison and found that he was in possession of contraband. The officer began to escort Ingram to an office to question him about the contraband and that is when Ingram turned and struck the officer in the face. The assault was captured on the prison’s internal video recording system.
The 42 month term of imprisonment was imposed consecutively to the 20 year sentence for conspiring to distribute powder cocaine, crack cocaine, heroin, and marijuana that Ingram was serving at the time of the assault. He was also ordered to pay fines and special assessments totaling $200 and was placed on a 2 year term of supervised release to follow his incarceration.
The case was investigated by the Federal Bureau of Investigation with the assistance of the Federal Bureau of Prisons.
The case was prosecuted by Assistant United States Attorney James M. Cutchin.
Two Arrested for Failing to Pay Employment TaxesRead the Press Release
LAREDO, Texas – Jorge Montemayor and Leticia Reyna have been arrested following the return of a 14-count indictment accusing them of failure to pay over employment taxes to the Internal Revenue Service (IRS), United States Attorney Kenneth Magidson announced today along with Special Agent in Charge of IRS - Criminal Investigation Lucy Cruz.
"Business owners have a responsibility to withhold income taxes for their employees and then remit those taxes to the Internal Revenue Service," said Cruz. "The failure to pay over withheld taxes are very serious offenses; IRS-CI is committed to vigorously pursuing those who violate employment tax laws."
According to the allegations in the indictment, Montemayor and Reyna operated Professional Skilled Services Inc., a home health care business in Laredo. Montemayor opened and began to operate the home health care business GDM Home Health Inc. in 2006. Montemayor and Reyna both were authorized to take care of financial matters for Professional Skilled Services and were listed as signatories on this company’s bank accounts. Montemayor had this same authorization for GDM Home Health Inc., according to the indictment.
As owner/operators with control over their businesses’ financial affairs, Montemayor and Reyna were responsible for collecting and withholding employment taxes from their employees’ paychecks. Employment taxes include federal income tax, Social Security and Medicare taxes. Montemayor and Reyna reported these withheld taxes but allegedly failed to pay them over to the United States. The indictment further alleges Montemayor and Reyna caused their respective companies to divert corporate funds to cover non-business expenses, including trips and entertainment. Montemayor and Reyna still allegedly owe more than $125,000 in employment taxes on behalf of Professional Skilled Services Inc. employees, and Montemayor still owes more than $1.3 million in employment taxes on behalf of GDM Home Health Inc. employees, the indictment alleges.
Failure to pay over employment tax carries a statutory maximum penalty upon conviction of five years in prison and a $250,000 fine.
The investigation resulting in the charges against Montemayor and Reyna were conducted by the IRS-CI and FBI. Assistant United States Attorney Elizabeth R. Rabe is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.Toledo Woman Sentenced to Two Years in Prison, Ordered to Pay $505,777 After Stealing from ChurchRead the Press Release
A Toledo woman was sentenced to two years in prison and ordered to pay $505,777 in restitution after previously admitting to stealing from Gesu Parish in Toledo, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Patricia Stanz, 61, was also sentenced to two years of supervised release by U.S. District Judge James Carr.
“This person abused the trust of her employer and the entire congregation,” Dettelbach said. “This sentence should send a message to those who would abuse the trust of friends, relatives or coworkers to enrich themselves.”
Stanz pleaded guilty last year to one count each of counterfeit securities and fraudulent use of a an access device (credit card).
From August 2007 to August 2011, Stanz was the business manager for the Gesu Parish, Toledo, Ohio, according to court documents.
She created and signed – without authorization – nearly 100 checks totaling approximately $295,000 from the Gesu Parish checking account with the intent to deceive the Fifth Third Bank. She also fraudulently used a credit card issued to Gesu Parish obtaining approximately $230,000 in cash advances and purchases, according to court documents.
This case was investigated by the Federal Bureau of Investigation and handled by Assistant United States Attorney Thomas A. Karol.
Three Men Sentenced to Prison Terms for 2011 Murder in Southeast WashingtonDefendants Lured Victim to Scene, Stabbed, and Robbed Him; Attack Captured on Victim’s 911 CallRead the Press Release
WASHINGTON – Wayne Jackson, 23, of Capitol Heights, Md., Harold Proctor, 20, of Upper Marlboro, Md., and Christopher Williams, 21, of Landover, Md., were sentenced today to prison terms of 24 years, 19 years, and 22 years, respectively, for the 2011 slaying of a man in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced today.
The defendants pled guilty in November 2012, in the Superior Court of the District of Columbia, to second-degree murder while armed and related charges. Proctor and Williams also pled guilty to obstructing justice for their role in attempting to interfere in the murder investigation. They were sentenced by the Honorable Ronna L. Beck. Upon completion of their prison terms, the defendants will be placed on five years of supervised release.
At the sentencings today, Judge Beck noted the viciousness of the murder, and expressed sympathy for the victim’s family.
According to the government’s evidence, on Dec. 17, 2011, the defendants and a co-conspirator, who previously pled guilty in this case, devised a plan to rob and assault the victim, Kevin Blackwell, Jr., 20. Proctor drove Williams, Jackson, and the co-conspirator to the 900 block of Burns Street SE, and the co-conspirator lured the victim outside. Armed with a knife and brass knuckles, Williams and Jackson got out of the car and waited to ambush Mr. Blackwell. Proctor and the co-conspirator kept the car idling nearby.
At about 10:30 p.m., when Mr. Blackwell came into sight, Williams and Jackson chased him down the street. Mr. Blackwell tripped and fell to the ground, and Williams and Jackson attacked him with the knife and brass knuckles. Proctor drove the car to the location where the victim fell, got out of the car, and joined in the attack. Jackson stabbed the victim in the chest. During the attack, Mr. Blackwell was able to call 911 on his cell phone and the robbery and murder were captured on the 911 call.
The defendants took Mr. Blackwell’s cell phone and North Face jacket and fled the area. Proctor drove the defendants and the co-conspirator away from the scene and back into Maryland. The next day, the victim’s cell phone and North Face jacket were discovered in Proctor’s bedroom.
During the investigation into the murder, both Proctor and Williams contacted the co-conspirator and asked the co-conspirator to mislead law enforcement by blaming the other for the murder. Williams also threatened the co-conspirator if the co-conspirator “snitched.”
In announcing the sentences, U.S. Attorney Machen praised the work of the detectives, officers, and crime scene technicians who investigated the case for the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Ethel Gregory, Marian Russell, and Sandra Lane; Lead Paralegal Sharon Newman; Victim/Witness Advocate Tamara Ince, and Criminal Investigator John Marsh. Finally, U.S. Attorney Machen recognized Assistant U.S. Attorneys Stephen Gripkey and Kimberley Nielsen, who investigated and prosecuted the case.
13-065Three Defendants Plead Guilty in $14 Million Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula Reid, Special Agent in Charge, U.S. Secret Service, Matthew Boyd, Chief, Miami Gardens Police Department, and Larry Gomer, Chief, North Miami Beach Police Department, announce that defendants Serge St-Vil, 61, of Miami, Muller Pierre, 62, of North Miami Beach, and Finshley Fanor, 34, of Lauderhill, pled guilty today for their participation in a stolen identity tax refund scheme that resulted in the submission of approximately $14 million in fraudulent refund claims.
St-Vil pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Sentencing for St-Vil is scheduled for May 17, 2013 at 8:30 a.m. before U.S. District Judge Robert N. Scola. At sentencing, the defendant faces a maximum possible statutory term of imprisonment of up to 22 years.
Pierre pled guilty to wire fraud, in violation of Title 18, United States Code, Section 1343. Sentencing for Pierre is scheduled for May 21, 2013 at 8:30 a.m. before Judge Scola. At sentencing, the defendant faces a maximum possible statutory term of imprisonment of up to 20 years.
Fanor pled guilty to conspiracy to defraud the government with respect to claims in violation of Title 18, United States Code, Section 286. Sentencing for Fanor is scheduled for May 22, 2013 at 8:30 a.m. before Judge Scola. At sentencing, the defendant faces a maximum possible statutory term of imprisonment of up to 10 years.
According to the plea documents filed with the court, in 2010, the defendants were involved in a scheme to file fraudulent and unauthorized tax returns seeking refunds. During the course of the scheme, more than 5,000 fraudulent and unauthorized returns were submitted to the IRS seeking over $14 million in refunds. Nearly all of these returns were submitted in the names of deceased persons. St-Vil was responsible for the filing of thousands of these returns using an Electronic Filing Identification Number obtained by Fanor.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the IRS-CI, the U.S. Secret Service, the Miami Gardens Police Department, and the North Miami Beach Police Department. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Tallahassee Woman Indicted in False Tax Return SchemeRead the Press Release
TALLAHASSEE, FLORIDA – Rose Martine Vernet, 34, of Tallahassee, was arraigned today on a five-count indictment charging conspiracy to defraud the United States, conversion of income tax refund checks, mail fraud, and aggravated identity theft. The indictment was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The indictment alleges that between February 2011 and January 2013, Vernet was part of a conspiracy to file fraudulent federal income tax returns seeking more than $350,000 tax refunds. The conspirators filed the returns in the names of individuals, both living and deceased, whose identities had been stolen. The indictment alleges that Vernet sold eight fraudulently obtained refund checks and provided the buyer with the personal identifying information of the victims to make the checks easier to negotiate. In selling the checks, Vernet is alleged to have told the buyer that the taxpayers were “dead people,” and that “no one will be able to report nothing.”
If convicted, Vernet faces up to ten years in prison on each of the conspiracy and conversion charges, up to twenty years in prison on the mail fraud charge, and a mandatory consecutive two- year term of imprisonment for identity theft. Trial is scheduled for April 8, 2013.
This case was investigated by the Internal Revenue Service – Criminal Investigations, the United States Secret Service, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Michael T. Simpson is prosecuting this case.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
State Employee Among Those Indicted for Marriage Fraud ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a state employee is among three persons indicted for their roles in a conspiracy to commit marriage fraud in order to evade immigration laws.
Oleksandr Nikolayevich Druzenko, also known as “Alex” or “Sasha,” 32, of Jefferson City, Mo., Patricia Anne Ewalt, 60, of El Paso, Texas, and Darya Chernova, 38, of Chandler, Ariz., were charged in a four-count indictment returned under seal by a federal grand jury in Jefferson City on Oct. 3, 2012. The indictment was unsealed and made public today following Druzenko’s arrest and initial court appearance.
Druzenko, who is employed at the Missouri Office of Administration in Jefferson City, is a Ukrainian national who entered the United States on a student visa in August 2004 and attended college in Missouri and elsewhere. Druzenko remains in federal custody pending a detention hearing.
According to the indictment, Druzenko and Ewalt (a U.S. citizen) were married on June 22, 2007, for the sole purpose of allowing Druzenko to remain in the United States. Under his student visa, Druzenko would have had to depart the United States within 60 days after graduation. Because of his marriage to Ewalt, Druzenko obtained lawful permanent resident status on Jan. 2, 2008.
Chernova, a friend of Druzenko’s, is also a Ukrainian who entered the United States on a student visa. In 2005 and 2006, the indictment says, she enlisted a U.S. citizen to marry her so that she could remain in the United States. She and another person (who is not identified in the indictment) allegedly assisted Druzenko in early 2007 to find a U.S. citizen to marry him so that he could remain in the United States and attempt to gain permanent resident status and potentially U.S. citizenship. They approached several persons, the indictment says, including one person with whom Druzenko procured a marriage license but who then declined to enter the sham marriage.
In March 2007, Druzenko was introduced to Ewalt. Chernova and at least one other person allegedly enlisted Ewalt to marry Druzenko so he could remain in the United States.
Druzenko, Ewalt and Chernova are each charged with participating in a conspiracy to commit marriage fraud in order to evade immigration laws.
In addition to the conspiracy, Druzenko and Ewalt are charged together in one count of marriage fraud and two counts of making false statements on immigration forms.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and U.S. Citizenship and Immigration Services.
Stamford Woman Sentenced to Two Years in Federal Prison for Role in Tax Fraud and Identity Theft SchemeRead the Press Release
February 22, 2013David B. Fein, United States Attorney for the District of Connecticut, today announced that DAMARIS PERALTA, 45, of Stamford, was sentenced today by Senior United States District Judge Alfred V. Covello in Hartford to 24 months of imprisonment, followed by three years of supervised release, for her involvement in a tax fraud and identity theft scheme.
According to court documents and statements made in court, between October and December 2010, PERALTA, Hector Medina and others were involved in a conspiracy through which they obtained at least 35 U.S. Treasury income tax refund checks by filing fraudulent tax returns, with false W-2 forms attached, on behalf of citizens of Puerto Rico without their knowledge or consent. As part of the scheme, Matilde Fabian-Pichardo used her position as a bank teller in Stamford to cash the fraudulent checks presented to her by Medina and others by using the legitimate accounts of bank customers. Medina kept the majority of the proceeds of the scheme and paid PERALTA and others for their assistance.
This scheme resulted in a loss of approximately $185,000 to the Internal Revenue Service. In addition, members of the conspiracy cashed fraudulently obtained state tax refund checks from New York and North Carolina, resulting in an additional loss of approximately $13,000.
PERALTA was ordered to pay, jointly and severally with her co-defendants, restitution in the amount of $198,425.57.
PERALTA has been detained since May 23, 2012. On October 24, 2012, she pleaded guilty to one count of conspiracy to defraud the Internal Revenue Service.
Medina and Fabian-Pichardo also have pleaded guilty. On October 2, 2012, Medina was sentenced to 27 months of imprisonment. Fabian-Pichardo awaits sentencing.
This investigation is being conducted by the Internal Revenue Service – Criminal Investigation, U.S. Secret Service, U.S. Postal Inspection Service, Greenwich Police Department, Stamford Police Department and the Connecticut Financial Crimes Task Force.
The case is being prosecuted by Assistant United States Attorneys Douglas Morabito and Ndidi Moses.
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(203) 821-3722 [email protected]St. Johns County Man Convicted in Methamphetamine CaseRead the Press Release
Jacksonville, FL - Yesterday, a federal jury found Frank Higginbotham (36, Hastings) guilty of one count of conspiracy to manufacture methamphetamine and one count of distribution of methamphetamine. For the conspiracy offense, Higginbotham faces a mandatory minimum sentence of 10 years, up to life in federal prison. He faces up to 20 years in federal prison for the distribution charge. A sentencing hearing has been scheduled for June 3, 2013. Higginbotham was indicted on August 2, 2012.
According to testimony and evidence presented at trial, Higginbotham manufactured and sold methamphetamine at various locations in St. Johns County. During the conspiracy, methamphetamine users gave Higginbotham boxes of medication containing pseudoephedrine in exchange for methamphetamine. Pseudoephedrine, which is an ingredient in many cold and allergy medications, is the primary ingredient needed to manufacture methamphetamine. On February 13, 2012, Higginbotham sold methamphetamine to an undercover Drug Enforcement Administration (DEA) agent.
This case was investigated by the Drug Enforcement Administration and the St. Johns County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
St. Clair County Women Sentenced for Fraud on the Medicaid Home Services ProgramRead the Press Release
Lillie Vaughn, 56, of Cahokia, IL, a beneficiary of the Illinois Medicaid Home Services program, and Vickie Deal, 46, of Madison, IL, her personal assistant under the program paid by the State of Illinois, were sentenced in the District Court in East St. Louis, IL, on one count of making False Statements related to Health Care Matters, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Each woman was sentenced to three years on probation, a $100 special assessment, and ordered to pay restitution in the total amount of $3,094.88 to the State of Illinois and to the United States Center for Medicare and Medicaid Services. Vaughn and Deal had previously pled guilty to defrauding the Illinois Department of Human Services (DHS) Home Services Program, a Medicaid Waiver Program designed to prevent the unnecessary institutionalization of individuals who may instead be satisfactorily maintained at home at a lesser cost to the State. Each admitted making a materially false statement in connection with the delivery of and payment for health care services by reporting on a Home Services Time Sheet sent to the Illinois Department of Human Services, Office of Rehabilitation Services, that from July 1 through July 15, 2011, that Deal had performed and that Vaughn had received 48 hours of personal assistant services, even though both knew that Deal did not perform any personal assistant services on these days because Deal was incarcerated.
The case was investigated by agents of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) and the Illinois State Police, Medicaid Fraud Control Bureau (MFCB) located in Collinsville, IL. This case was prosecuted by Assistant U.S. Attorney Michael J. Quinley.
Six Convicted in Cocaine Trafficking ConspiracyRead the Press Release
Evidence Gathered from Federal Wiretaps Uncovers Sophisticated Cocaine Enterprise
Montgomery, Alabama - George L. Beck, Jr., United States Attorney for the Middle District of Alabama, announced that six people were convicted by a jury in federal district court of conspiring to distribute powder cocaine and cocaine base. Defendant William Jerome Davis was also found guilty of money laundering. The six defendants convicted are:
Willie Jerome Davis, a.k.a. “Mobey”, age 52, of Elmore, Alabama; Eulanda Lashade Trimble, a.k.a. “Yo Yo”, age 33, of Montgomery, Alabama; Clifton Pettus, a.k.a. “Biscuit”, age 33, of Montgomery, Alabama; Robert Marshall, a.k.a. “Big Daddy”, age 39, of Montgomery, Alabama; William James Reese, age 38, of Deatsville, Alabama; and
Eric Orlando Reese, age 38, of Montgomery, Alabama.All defendants were found guilty after a two and half week trial before Chief United States District Judge W. Keith Watkins.
Evidence introduced at trial showed a sophisticated drug trafficking conspiracy involving multi-kilograms of powder cocaine. This conspiracy ranged from Autauga, Elmore, and Montgomery counties. Prosecutors introduced evidence gathered from four judicially authorized wiretaps initiated in February 2012 and running through May 2012. These wiretaps uncovered two drug trafficking cells that had joined forces to saturate Autauga, Elmore and Montgomery counties with cocaine. In addition to drug evidence gathered from wiretaps, prosecutors showed evidence of money laundering and unexplained wealth. According to the evidence, Mr. Willie Jerome Davis had at least $500,000 of illicit assets, including real and personal property. After establishing that Davis had very limited legitimate income, the jury was allowed to infer that his “wealth” came from illicit activity – drug trafficking.
United States Attorney George L. Beck, Jr. stated, “I want to thank local law enforcement for the tremendous help they provided to DEA. It is with the cooperation and assistance of local law enforcement, such as the Millbrook Police Department, the Wetumpka Police Department, the Montgomery Police Department and through the Central Alabama Drug Task Force and HIDTA Task Force areas that we are able to prosecute individuals who prey on the weak and feed the drug culture that has become so prevalent in America. In addition to severe prison sentences, our office will seek the forfeiture of cash, personal property and any homes used as means to sell drugs.”
U. S. Attorney Beck specifically would like to acknowledge the hard work and dedication of Assistant U. S. Attorneys Verne H. Speirs, Gray M. Borden and Tommie Brown Hardwick.
DEA Resident Agent in Charge W. Marshall Simons remarked, “These guilty verdicts are a culmination of superior collaborative efforts by DEA Montgomery, the Middle District of Alabama United States Attorney’s Office, the High Intensity Drug Trafficking Area Task Force, FBI, and our other, federal, state and local counterparts. This case sends an undeniable message to drug dealers in the greater Montgomery, Alabama area: your illegal activities are not welcomed here. The verdicts in this case represent the collective and symbolic voice of the fine citizenry in this community who have resolved to partner with us to take back their streets. The men and women of DEA remain steadfast in our commitment to this endeavor.”
At sentencing, some defendants will face mandatory minimum terms of incarceration, including life imprisonment. Other defendants could be sentenced to as much as twenty years’ imprisonment. A sentencing date has yet to be set by the Court.
The following local, state, and federal agencies assisted with this investigation: DEA’s Montgomery Regional Office, the High Intensity Drug Trafficking Area program, Birmingham District Office, DEA Atlanta, DEA New York, DEA’s Special Operations Division, Organized Crime Drug Enforcement Task Force Financial Investigation Team (Atlanta, Ga.), FBI, United States Marshals, Central Alabama Drug Task Force, Office Of The Attorney General, Elmore County Sherriff's Office, Wetumpka Police Department, Montgomery Police Department, Millbrook Police Department, Montgomery County Sherriff's Office, Prattville Police Department, Autauga County Sherriff's Office, Alabama State Police, Alabama Beverage Control, Alabama Bureau of Investigation, Chilton County Sherriff's Office, and The Alabama National Guard.
The case was prosecuted by Assistant U. S. Attorneys Verne H. Speirs, Gray M. Borden, and Tommie Brown Hardwick.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Singapore-Based Shipping Company to Pay $2.2 Million for Covering up Oil PollutionRead the Press Release
Pacific International Lines, a Singapore-based container ship company, was sentenced today in D.C. federal court under the terms of a plea agreement that requires the company to pay $2.2 million in criminal penalties, the Department of Justice announced today. Pacific International Lines previously pleaded guilty to three felony charges that it made false statements to the U.S. Coast Guard and violated the Act to Prevent Pollution from Ships by concealing illegal waste water operations and discharges in a falsified oil record book – a required log in which all overboard discharges must be recorded – and operating a vessel in waters of the United States without a functioning oil water separator (a required pollution control device). The charges are a result of Pacific International Lines illegal operation of the vessel M/V Southern Lily 2 in June 2012.
"Today's sentencing is a noteworthy success for the few federal law enforcement agencies charged with enforcing U.S. and international maritime laws protecting the oceans and natural marine resources both around the remote U.S. Pacific Islands and throughout the vast area of the South Pacific," said Joshua J. Masterson, Special Agent-in-Charge of Coast Guard Investigative Service-Pacific Region. "This case, being the third of its kind since 2011, should send a clear message to those shipping companies and mariners who willfully cut corners and violate the laws enacted to protect the oceans as well as place a much needed spotlight on this region of the South Pacific."
According to the plea agreement, including a joint factual statement, the company operated the vessel Southern Lily 2 in American Samoa. On June 22, 2012, the vessel was boarded by the U.S. Coast Guard for a routine inspection. During the inspection the Coast Guard discovered that the ship’s oil water separator was not functioning. The Coast Guard learned that the device had not been functioning for several months and, at the direction of the chief and second engineer, the oily waste water had been being discharged overboard in violation of international law. The illegal discharges and the fact that the oil water separator did not function was not entered in the ship’s oil record book as required by federal law.
Additionally, under the terms of the plea agreement, Pacific International Lines was placed on probation for three years, during which time it must operate under the terms of a government-approved Environmental Compliance Plan. The plan includes review by an independent auditor of any of Pacific International Lines ships—including the Southern Lily 2—that trade in the United States.
In addition to the $2 million criminal fine, the judge also ordered Pacific International Lines to pay $200,000 to support community service projects. The projects will be administered by the National Fish & Wildlife Foundation asnd the National Marine Sanctuary Foundation.
Engine room operations on-board large ocean-going vessels such as the Southern Lily 2 generate large amounts of waste oil and oil contaminated bilge waste. International and U.S. law prohibit the discharge of waste containing more than 15 parts per million oil and without treatment by an oil water separator and oil sensing equipment—a required pollution prevention device. The Act to Prevent Pollution from Ships also requires that all overboard discharges be recorded in an oil record book, which is subject to inspection by the Coast Guard. The waste oil may be incinerated on board the ship or offloaded in port for proper disposal.
In related prosecutions, the second engineer of the Southern Lily 2, Qing Cao, pleaded guilty to a felony information charging him with operating the Southern Lily 2 in Waters of the United States without a functioning oil water separator in violation of the Act to prevent Pollution from Ships. The court sentenced Cao to 36 months of probation and ordered Cao to depart the United States immediately. As a condition of probation, the court ordered Cao not to work on any vessels that call at U.S. ports during the term of his probation.
This investigation was conducted by the Pacific Regional Office of the U.S. Coast Guard Investigative Service Honolulu, Hawaii, and Senior Litigation Counsel Howard P. Stewart of the Justice Department’s Environmental Crimes Section.
Sheffield Man Sentenced to 18 Months in Prison for Scheme Involving ATVsRead the Press Release
Nicholas J. Henry, age 29, of Sheffield, Ohio, was sentenced today to 18 months in prison and ordered to pay restitution in the amount of $220,532.64 as a result of his recent conviction for wire fraud, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.Henry was also ordered to serve a three year period of supervised release following his release from prison and was ordered to pay a $100 special assessment to the Crime Victims’ Fund.
On May 22, 2012, a federal grand jury in Cleveland, Ohio, returned an indictment which charged that from on or about January 1, 2005, through on or about October 15, 2009, Henry knowingly devised a scheme and artifice to defraud, and to obtain money and property by means of false and fraudulent pretenses, representations and promises, and that in executing said scheme and artifice, knowingly caused funds to be transmitted from the victims to Henry by means of interstate wire communications. Henry entered a guilty plea to wire fraud on October 23, 2012.
Henry advertised the sale of certain All Terrain Vehicles (“ATVs”) and scooters via an Internet website, and used the business names “China Vehicle Company LTD” and “Scooter Direct.” China Vehicle Company LTD., and Scooter Direct were not incorporated entities with the Ohio Secretary of State’s Office and were not registered as limited liability companies in Ohio. Henry targeted his solicitations primarily towards automobile dealerships throughout the United States, offering to sell vehicles such as ATVs and scooters manufactured in China at a “discounted” price, for resale to the public, according to court documents.
Henry directed the customers to make full or partial payments for the ATVs and scooters by sending wire transfers of funds to his personal bank accounts. Henry would immediately take his full commission upon receiving payment from the automobile dealerships, and prior to receiving the shipment of ATVs and scooters from China, according to court documents.
Despite receiving payment and taking his commission for the transactions, Henry failed to provide ATVs and scooters to the automobile dealerships as agreed. Instead, Henry made repeated excuses to some dealerships for his failure to deliver the merchandise as agreed, and eventually failed to respond to inquiries and complaints from the customers. Despite his inability to deliver ATVs and scooters to the dealerships as promised, Henry nonetheless continued advertising, soliciting additional sales, and entering into sales contracts with additional dealerships throughout the period covered in the indictment.
Between January 1, 2005, and October 15, 2009, Henry received at least 36 wire transfers of funds from the dealerships as payment for ATVs and scooters which HENRY negotiated on behalf of the “China Vehicle Company LTD.,” totaling over $266,000. Henry failed to refund or return payments received for merchandise not delivered to the victim dealerships, but rather took a 20-25 percent commission immediately upon receipt of the payments. Henry later withdrew, spent and converted to his own use, the funds from the wire transfers initiated by the dealerships totaling over $143,000, according to court documents.
Between September 25, 2008, and October 15, 2009, Henry received wire transfers for “new” orders from victim dealerships totaling approximately $79,644. During this time, Henry made no attempt to secure scooters from China and made no payments to the manufacturer. Instead, Henry used the funds received from the victims to pay personal bills and expenses including rent, car payments, utilities and other personal expenses, according to court documents.
This case was prosecuted by Assistant United States Attorneys Carol M. Skutnik and Robert W. Kern. The case was investigated by the Elyria Office of the Federal Bureau of Investigation.
Seventeen Defendants Facing Federal Narcotics or Firearms Charges Alleging Nexus of Guns and Drugs in ChicagoRead the Press Release
CHICAGO —Seventeen defendants are facing federal narcotics and/or firearms charges which demonstrate again the intersection of drugs and illegal gun possession in Chicago. An investigation by the Chicago Police Department and the U.S. Drug Enforcement Administration of alleged drug-trafficking by a father and son that started less than a year ago, has resulted in federal narcotics charges against them, two alleged suppliers, at least eight alleged customers, and others, as well as the seizure of more than 14 kilograms of cocaine, three kilograms of heroin, 15 firearms, and approximately $320,000.
The investigation moved up and down an alleged drug supply ladder as a result of
Chicago police officers and DEA agents using federal wiretaps on at least a dozen phones to intercept conversations and deliveries of narcotics and firearms.In a telephone conversation on Nov. 26 last year, defendant DWYANE PAYNE, also known as “Murder,” allegedly told an individual that he needed a gun because he was going to a memorial service at North Central Park Avenue and West Division Street, where rival gang members would be present. Based on that call and others that followed, police and agents set up surveillance at the intersection and, about an hour later, approached the man who Payne had been talking to as he was standing next to a 2005 Chrysler 300. The individual ran but was quickly apprehended and gave permission to search his car. Inside, two TEC-9 semi-automatic pistols with extended magazines were found on the floor of the backseat – one was loaded with 30 live rounds and the other, which had a defaced serial number, was loaded with approximately 28 live rounds, including one in the chamber.
Payne’s brother, MARSHALL PAYNE, was also indicted yesterday for being a previously convicted felon in illegal possession of both loaded TEC-9s.
Four days later, on Nov. 30, 2012, after listening to other intercepted conversations, investigators stopped a vehicle in the 7400 block of West Waveland Avenue, arrested the driver
– an alleged drug courier, LUCIO CUEVAS – and seized two kilograms of cocaine and a handgun later found in a trap compartment in the vehicle. Believing that the cocaine was destined for delivery to the nearby residence of JOHNNY MENDEZ, located in the 3700 block of North Olcott Avenue, authorities later that day arrested Mendez and his father, JOHNNY
CHAPARRO, who also lived nearby in the 3700 block of North Oketo Avenue. Investigators searched Mendez’s home and seized two kilograms of heroin, a handgun and approximately
$209,130.Authorities first began investigating alleged wholesale cocaine and heroin distribution by
Chaparro and Mendez in 2012. The investigation resulted in charges against them, as well as two of their alleged suppliers, JOSE ARGUIJO and ANTONIO VALENCIA-PANTOJA, and at least eight alleged customers, ANTHONY MADISON, PAUL JENKINS, LAKICHA WHITE, DISLSON ROCHA, JOEL MELENDEZ, DWAYNE PAYNE, DELILAH MARTINEZ, and
IRIS CORREA. The charges allege that Chaparro and Mendez obtained kilogram quantities of narcotics from Arguijo on Sept. 3 and Nov. 26, 2012, and from Valencia-Pantoja on Nov. 30, including the cocaine that was seized on those dates.Following the arrests of Chaparro, Mendez, and Cuevas on Nov. 30, and four other defendants last week, six additional defendants were arrested on Wednesday, while two others are in state custody, and two are fugitives.
All 17 defendants were charged in eight separate indictments returned yesterday by a federal grand jury. Most of the defendants either have been ordered detained or have detention hearings next week in U.S. District Court.
One indictment, against Chaparro, Mendez and seven others, seeks forfeiture of approximately $758,729 in alleged narcotics proceeds, including approximately $236,000 that was seized during the investigation. It also seeks forfeiture of Chaparro and Mendez’s residences, and an automobile. Other indictments seek forfeiture of smaller amounts of cash, as well as another vehicle and multiple firearms.
“Anyone who has paid attention over the last 25 years knows that these charges are just the latest result of the remarkable teamwork among the Chicago Police Department, DEA and other federal law enforcement agencies,” said Gary S. Shapiro, United States Attorney for the
Northern District of Illinois. “While none of these defendants are accused of acts of violence; nevertheless, narcotics and firearms prosecutions such as these are effective in helping reduce violence in Chicago, and we will continue to work closely with the CPD to achieve that goal.”
Mr. Shapiro praised the dedication of the Chicago Police Department and the DEA for the disruption of this alleged narcotics distribution activity.“Guns and drugs remain the greatest underlying source of our city’s violence. The
Chicago Police Department will continue to attack the pervasiveness of illegal weapons and narcotics in our communities from every angle,” said Garry F. McCarthy, Superintendent of the
Chicago Police Department. “Focused, collaborative efforts with our federal partners send a clear message that those responsible for driving the related violence in our communities will be found and held accountable.”Jack Riley, Special Agent-in-Charge of the DEA’s Chicago office, said: “The indictments of these 17 individuals yesterday should serve as a notice to criminal networks in Chicago that allegedly traffic in narcotics and weapons that the Drug Enforcement Administration and the
Chicago Police Department stand shoulder to shoulder in our commitment and we will use every available legal avenue to make our city safer.”The investigation was conducted under the umbrella of the U.S. Organized Crime Drug
Enforcement Task Force (OCDETF).Details of the separate indictments follow:
United States v. Chaparro, et al., 12 CR 969
JOHNNY CHAPARRO, 50; his son, JOHNNY MENDEZ, aka “Trigger,” 29; JOSE
ARGUIJO, 35; ANTHONY MADISON, 47; PAUL JENKINS, 63; LAKICHA WHITE, 36; DILSON ROCHA, 58; JOEL MELENDEZ, 2; and DWAYNE PAYNE, 29, all of Chicago except Melendez, who is from Milwaukee, were charged with various narcotics offenses in 19- count indictment. Seven of the nine defendants are in custody; Arguijo and Melendez are fugitives.Mendez was charged with being a felon-in-possession and also possessing a firearm – a
.40 caliber semi-automatic pistol – while committing a drug offense. The felon-in-possession count carries a maximum penalty of 10 years in prison, while the count of possessing a firearm during a drug offense carries a mandatory minimum sentence of five years to a maximum of life in prison, which must be served consecutively to any other sentence, if convicted.Chaparro, Mendez, and Arguijo each face a mandatory minimum sentence of 10 years and a maximum of life in prison and a $10 million fine on the narcotics charges. Madison, Jenkins, White, Rocha, and Melendez each face a mandatory minimum of five years and a maximum of 40 years in prison and a $5 million fine on the narcotics charges, if convicted.
United States v. Chaparro and Meireles, 13 CR 171
JOHNNY CHAPARRO was charged again, together with MODESTO MEIRELES, aka
“Old Man,” 62, of Chicago, in a six-count indictment for various narcotics offenses.Chaparro and Meireles face a mandatory minimum of five years and a maximum of 40 years in prison and a $5 million fine, if convicted.
United States v. Valencia-Pantoja and Cuevas, 13 CR 170
ANTONIO VALENCIA-PANTOJA, 23, and LUCIO CUEVAS, 24, both of Chicago, were charged together in a three-count indictment for allegedly conspiring to distribute the cocaine that was seized from Cuevas on Nov. 30, 2012.
They each face a mandatory minimum of five years to a maximum of 40 years in prison and a $5 million fine, if convicted.
United States v. Martinez and Correa, 13 CR 157
DELILAH MARTINEZ, 33, and her mother, IRIS CORREA, 57, both of Chicago, were charged together in an 11-count indictment for allegedly conspiring to distribute narcotics.
Martinez was also indicted separately for allegedly being a felon-in-possession of a .357 revolver on July 23, 2012. (United States v. Martinez, 13 CR 173)
They each face a man mandatory minimum of five years to a maximum of 40 years in prison and a $5 million fine, if convicted. Martinez alone faces a maximum penalty of 10 years in prison if convicted of being a felon-in-possession of a firearm.
United States v. Payne, 13 CR 174
United States v. Lopez, 13 CR 154
United States v. Suriano, 13 CR 172Three other defendants were charged separately in single-count indictments for allegedly being felons-in-possession of firearms. They are: MARSHALL PAYNE, 31, of Chicago, for allegedly possessing the two TEC-9s on Nov. 26, 2012; CARLOS LOPEZ, aka “Moses,” 34, of
Elmwood Park, for allegedly possessing a .25 caliber semi-automatic handgun on June 8, 2012; and SALVATORE SURIANO, 25, of Chicago, for allegedly possessing a shotgun on July 31, 2012.They each face a maximum penalty of 10 years in prison if convicted of being a felon-inpossession of a firearm.
In each case, if convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines. The public is reminded that indictments contain only charges and are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is being represented by Assistant United States Attorneys Erika Csicsila and Sarah Streicker.
Chaparro et al Indictment
Valencia Cuevas Indictment
Chaparro and Mendez Complaint
Arguijo Complaint
San Diego Jury Convicts Four Somali Immigrants of Providing Support to Foreign TerroristsRead the Press Release
SAN DIEGO, CA – A federal jury today convicted four Somali immigrants, including a popular imam at a City Heights mosque, of conspiring to provide material support to the terrorist group al-Shabaab.
The jury found that the four men - Basaaly Saeed Moalin, a cabdriver in San Diego; Issa Doreh, a worker at a money transmitting business that was the conduit for moving the funds; Mohamed Mohamed Mohamud, the imam at a mosque frequented by the city’s immigrant Somali community; and Ahmed Nasiri Taalil Mohamud, a cabdriver from Anaheim – conspired to raise money for the foreign terrorist organization and send it back to Somalia.
During the three-week trial, the United States presented evidence that Moalin, Mohamud, Doreh and Nasir conspired to provide money to al-Shabaab, a violent and brutal militia group in Somalia that engages in suicide bombings, targets civilians for assassination, and uses improvised explosive devices. In February 2008, the U.S. Department of State formally designated al-Shabaab as a foreign terrorist organization.
At trial, the jury listened to dozens of the defendants’ intercepted telephone conversations, including many conversations between defendant Moalin and Aden Hashi Ayrow, one of al-Shabaab’s most prominent leaders who was subsequently killed in a missile strike on May 1, 2008. In those calls, Ayrow implored Moalin to send money to al-Shabaab, telling Moalin that it was “time to finance the Jihad.” Ayrow told Moalin, “You are running late with the stuff. Send some and something will happen.” In the calls played for the jury, Ayrow repeatedly asked Moalin to reach out to defendant Mohamud – the imam – to obtain funds for al-Shabaab.
According to the evidence presented at trial, the defendants conspired to transfer the funds from San Diego to Somalia through the Shidaal Express, a now-defunct money transmitting business in San Diego.
The United States also presented a recorded telephone conversation in which defendant Moalin gave the terrorists in Somalia permission to use his house in Mogadishu, Somalia, telling Ayrow that “after you bury your stuff deep in the ground, you would, then, plant the trees on top.” Prosecutors argued at trial that Moalin was offering a place to hide weapons.
When Moalin cautioned, however, that the house could be easily identified from afar, Ayrow replied: “No one would know. How could anyone know, if the house is used only during the nights?”
According to United States Attorney Laura E. Duffy, the prosecution was the result of a lengthy investigation by the San Diego Joint Terrorism Task Force. She said she is pleased with the verdict. “Justice was served today in San Diego,” Duffy said. “The jury clearly did not accept defense claims that months of intercepted conversations about bullets, bombings and Jihad were actually conversations about their charitable efforts for orphans and schools.
“This case proves that our efforts to detect and disrupt terrorist financing – and prevent the violence that goes along with it - has paid off. The United States Attorney’s Office is dedicated to investigating and vigorously prosecuting any persons who provide support or resources to terrorists or foreign terrorist organizations. I commend the hard work and dedication of San Diego’s Joint Terrorism Task Force in this case.”
FBI Special Agent in Charge Daphne Hearn commented, "While the FBI is not concerned with the legal transfer of funds to family, friends and charities overseas, when individuals provide material support to designated terrorists or terrorist organizations, the FBI and our Joint Terrorism Task Force partners will bring all resources to bear, to investigate these plots with a common goal of protecting all Americans from those who wish to do us harm.”
“These convictions illustrate the importance of collaboration when promoting national security,” said Derek Benner, special agent in charge for ICE Homeland Security Investigations in San Diego. “Protecting our nation’s security is our top priority, and I commend all of the federal law enforcement partners who worked tirelessly to make this a successful investigation. ”
Al-Shabaab is a terrorist organization based in Somalia, with objectives including the overthrow of the Transitional Federal Government (TFG), the elimination of African Union support for the TFG. Al-Shabaab has engaged in, and used, violence, intimidation and acts of terrorism, including suicide bombings, in Somalia and elsewhere to further its objectives.
Here’s a breakdown of the verdict:
Defendant Moalin: Convicted of five counts including conspiracy to provide material support to terrorist, conspiracy to provide material support to foreign terrorist organization, conspiracy to launder monetary instruments, providing material support to terrorists and providing material support to foreign terrorist organization
Defendant Mohamed Mohamed Mohamud: Convicted of four counts including conspiracy to provide material support to terrorist, conspiracy to provide material support to foreign terrorist organization, conspiracy to launder monetary instruments, and providing material support to foreign terrorist organization
Defendant Issa Doreh: Convicted of four counts including conspiracy to provide material support to terrorist, conspiracy to provide material support to foreign terrorist organization, conspiracy to launder monetary instruments, and providing material support to foreign terrorist organization
Defendant Ahmed Nasir Taalil Mohamud: Convicted of threer counts including conspiracy to provide material support to terrorist, conspiracy to provide material support to foreign terrorist organization, and conspiracy to launder monetary instruments
Sentencing was set for May 16 at 9 a.m. before U.S. District Judge Jeffrey T. Miller.
This case was prosecuted in federal court in San Diego by Assistant United States Attorneys William Cole and Caroline Han and Department of Justice Trial Attorney Steven Ward. This case was investigated by the San Diego Joint Terrorism Task Force; the Federal Bureau of Investigation; the Department of Homeland Security, Immigration and Customs Enforcement; and the Department of Homeland Security, Customs and Border Protection.
Criminal Case No. 10cr4246-JM DEFENDANTS Criminal Case No. 10-CR-4246-JM Basaaly Saeed Moalin
Mohamed Mohamed Mohamud
Issa Doreh
Ahmed Nasir Taalil Mohamud SUMMARY OF CHARGESCount 1 (all defendants): Title 18, United States Code, Section 2339A(a) - Conspiracy to Provide Material Support to Terrorists; Maximum penalties: 15 years in prison and a $250,000 fine.
Count 2 (all defendants): Title 18, United States Code, Section 2339B(a)(1) - Conspiracy to Provide Material Support to Foreign Terrorist Organization; Maximum penalties: 15 years in prison and a $250,000 fine.
Count 3 (all defendants): Title 18, United States Code, Section 1956(h) - Conspiracy to Launder Monetary Instruments; Maximum penalties: 20 years in prison and a $500,000 fine.
Count 4 (Basaaly Moalin): Title 18, United States Code, Section 2339A(a) - Providing Material Support to Terrorists; Maximum penalties: 15 years in prison and a $250,000 fine. Count 5 (defendants Basaaly Moalin, Mohamed Mohamed Mohamud, and Issa Doreh): Title 18, United States Code, Section 2339B(a)(1) - Providing Material Support to Foreign Terrorist Organization; Maximum penalties: 15 years in prison and a $250,000 fine.
PARTICIPATING AGENCIESSan Diego Joint Terrorism Task Force
Federal Bureau of Investigation Department of Homeland Security, Immigration and Customs Enforcement
Department of Homeland Security, Customs and Border ProtectionSan Bernardino Man Pleads Guilty to Distributing MethamphetamineRead the Press Release
OAKLAND - Hassan Johnny Valenzuela pleaded guilty in federal court in Oakland on Wednesday, February 20, 2013, to conspiracy to distribute methamphetamine and possession with the intent to distribute methamphetamine, United States Attorney Melinda Haag announced.
In pleading guilty, Valenzuela admitted to possessing with the intent to distribute 50 grams or more of methamphetamine and agreeing with another individual to do so.
According to the plea colloquy, when Valenzuela was arrested on September 5, 2012, he had approximately 4.4 kilograms of crystal methamphetamine inside a speaker box in the trunk of a vehicle that he was driving. According to the plea colloquy, Valenzuela had agreed with his co-conspirator to distribute 50 grams or more of methamphetamine at a distribution point in Oakland, California.
Valenzuela, 22 years old, of San Bernardino, California, was indicted by a federal grand jury on September 27, 2012. He was charged with one count of conspiracy to distribute and possess with the intent to distribute methamphetamine in violation of Title 21, United States Code Sections 846, 841(a)(1) and 841(b)(1)(A)(viii), and possession with the intent to distribute methamphetamine in violation of Title 21, United States Code Sections 841(a)(1) and 841(b)(1)(A)(viii). Valenzuela pleaded guilty to both counts without a plea agreement.
At the conclusion of his guilty plea, Valenzuela was remanded to the custody of the United States Marshal. The sentencing of Valenzuela is scheduled for May 8, 2013, before the Honorable Phyllis J. Hamilton in Oakland. The maximum statutory penalty for each count in violation of 21 U.S.C. §841(a)(1) and 846 is life imprisonment and a fine of $10,000,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Chinhayi Cadet is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Jacquelyn Lovrin. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Oakland Police Department.