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Thursday 10 January 2013
Fort Pierre Man Pleads Guilty to Drug ChargeRead the Press Release
US Attorney Brendan V. Johnson announced that Dalton Mollard, age 20, of Fort Pierre, appeared before US District Judge Roberto A. Lange on January 10, 2013, and pled guilty to one count of the indictment that charged him with Distribution of a Controlled Substance. The maximum penalty upon conviction is 5 years of imprisonment, a $250,000 fine, or both.
The charge stems from an incident on April 4, 2012, when Mollard knowingly and intentionally distributed marijuana, a Schedule I controlled substance, to others.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, and Assistant US Attorney Kathryn N. Rich is prosecuting the case. Mollard was remanded to the custody of the US Marshal pending sentencing. A sentencing date has been set for March 25, 2013.
Former Xpress Flex, Inc. and Payroll America, Inc. Owner Sentenced to 51 Months for Fraud and Filing A False Tax ReturnRead the Press Release
Ordered to Pay Restitution of Nearly $1 Million to Victims
BOISE – Michael Wayne Davis, II, 46, of Raleigh, North Carolina, formerly of Eagle, Idaho, was sentenced yesterday to 51 months in prison for wire fraud and filing a false tax return, U.S. Attorney Wendy J. Olson and Assistant Attorney General for the Justice Department's Tax Division Kathryn Keneally announced. Chief U.S. District Judge B. Lynn Winmill also ordered Davis to serve three years of supervised release following his prison term and pay $999,930.90 in restitution – $954,640.90 to Xpress Flex victims and $45,290 to the IRS for the tax loss. Davis pleaded guilty to the charges on September 10, 2012.
According to court documents, in 2009 and 2010, Davis owned and operated Xpress Flex, Inc., a Boise, Idaho, company that administered, on behalf of employer-clients, flexible benefits plans for tax-free, qualified benefits, such as health care and dependent care. Pursuant to those plans, Xpress Flex received monetary contributions from its employer-clients of pre-tax withholdings from their employees’ paychecks. These funds were deposited into Xpress Flex bank accounts and set aside to pay the claims of employee-participants when they came due. According to court documents, Davis misappropriated $954,640.90 of Xpress Flex client funds and used them to pay personal credit card charges and the business expenses of his other company, Payroll America, Inc. He did so without the knowledge or authorization of the employer-clients and their employees, and contrary to representations in plan documents and contracts that he would safeguard the deposits and use them only to pay employee claims.
Court documents also showed that from 1994 through 2009, Davis owned and operated Payroll America in Boise, Idaho. Payroll America provided payroll administration and payroll tax filing services to its employer-clients. Pursuant to contract documents, employer-clients would deposit sufficient funds with Payroll America to meet their payroll and payroll tax obligations, which Payroll America would pay when they came due. According to court documents, in March and April of 2007, Davis misappropriated $2 million of Payroll America employer-client funds, wired them into his E*Trade brokerage account, and then invested the funds in the stock market. Davis did so without the knowledge or authorization of the employer-clients of Payroll America, contrary to representations in contract documents that he would safeguard the funds and use them only to pay payroll and payroll taxes.
Davis’ E*Trade investments generated approximately $192,436 in capital gains income. According to court documents, Davis wired this money into his and his wife’s personal checking account. The wire transfer was annotated “E-Trade Gains.” However, Davis intentionally failed to report capital gains income from E*Trade investments on his 2007 or 2008 tax returns, causing a tax loss of $45,290. For this conduct, Davis pleaded guilty to one count of filing a false tax return.
“I’m very pleased that my office, with the assistance of the Justice Department’s Tax Division, and federal law enforcement partners were able to bring Mr. Davis to justice,” said Olson. “Those who are entrusted to manage others’ money must ensure that it is safe and available for its intended purpose, not diverted for personal gain.”
“This sentencing sends a clear message, businesses owners who misuse their positions of trust and divert funds for their own personal use will be held accountable,” said Lilia E. Ruiz, IRS Criminal Investigation Acting Special Agent in Charge for the State of Idaho.
The case was investigated by the Federal Bureau of Investigation, the U.S. Department of Labor, Employee Benefits Security Administration, and Internal Revenue Service-Criminal Investigation.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Former Staff Sergeant Sentenced for Stealing Public Money Earmarked for Her Military UnitRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today NANCY NICOLE SMITH, 27, of Columbia, South Carolina, was sentenced by United States District Judge Louise W. Flanagan to 20 months imprisonment, restitution of $100,000, and 3 years of supervised release. SMITH previously pled guilty to theft of government money in violation of Title 18, United States Code, Section 641, and to bulk cash smuggling in violation of Title 31, United States Code, Section 5332.
Mr. Walker stated, “SMITH abused a position of trust and betrayed the trust of the American taxpayers, including her fellow service members, when she stole $100,000 of U.S. funds earmarked for her military unit. The sentence imposed today reflects the seriousness of her offense and should serve as a deterrent for others.”
According to the Criminal Information filed on August 2, 2012, and information in the public record, SMITH was a Staff Sergeant in the United States Army assigned to a Personnel Service Battalion attached to the 7th Special Forces Group based at Fort Bragg, North Carolina. From September 2009 through February 10, 2010, SMITH was deployed to Afghanistan with the 7th Special Forces Group. While deployed, SMITH was a disbursing agent responsible for, among other things, disbursing money and reconciling the books and records. On at least two occasions, SMITH falsified documents in order to steal $100,000 from funds earmarked for her military unit. She thereafter brought the stolen monies, which at the time were concealed in her backpack, back to the United States.
"Nancy Smith stole money intended for urgent projects in a combat zone, betraying her oath and our armed forces. Special Inspector General for Afghan Reconstruction (SIGAR) and our investigative partners are making it clear that those who defraud the U.S. government will be brought to justice," said Special Inspector General John F. Sopko.
"We are very pleased with today's sentencing," said Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. "Stealing money during a time of war that is intended for such an important cause is reprehensible and we will continue to do everything in our investigative power to bring those responsible to justice."
“By stealing money from her U.S. Army unit while deployed to a combat theater, (former) Staff Sergeant Smith betrayed her position of trust for personal greed and deprived her fellow soldiers of much needed funds. The Defense Criminal Investigative Service continues our aggressive efforts to root out corruption and fraud impacting our Warfighters, and recover stolen taxpayer dollars,” commented Special Agent in Charge John F. Khin, DCIS Southeast Field Office.
Investigation of this case was conducted by the Department of Defense Criminal Investigative Service, the Federal Bureau of Investigation, the Office of the Special Inspector General for Afghanistan Reconstruction, and the United States Army Criminal Investigation Command. Assistant United States Attorney Banumathi Rangarajan is serving as prosecutor for the government.
Former Jackson, Missouri Tax Preparer Indicted for Tax FraudRead the Press Release
St. Louis, MO - Cynthia M. Raymond was indicted on multiple fraud counts involving her preparation of 98 false tax returns under the names of 36 clients for the tax years of 2007 through 2010. The indictment alleges that these tax returns under reported taxes in cumulative amounts in excess of $300,000.
According to the indictment, Raymond included false deduction on the returns which resulted in excessive and unlawful refunds. She provided her clients with a different tax return than what was filed with the IRS. The tax refund listed on the tax return Raymond provided to her clients matched the tax refund deposited to their account. She then electronically filed the false tax returns which generated the payment of false refunds which she had directed to her own account. It is alleged that Raymond received $103,000 of direct deposits into her account from the false refunds.
The indictment charges a separate criminal act in which Raymond used the name and social security number of a Jackson-area resident to prepare a completely fabricated tax return for 2009. According to the indictment, Raymond directed the false refund from that return in the amount of $1075 into her own account.
CYNTHIA M. RAYMOND, Kansas City, KS, formerly of Jackson, MO, was indicted Wednesday by a federal grand jury on three felony counts of making and filing a false tax return, six felony counts of aiding and assisting in making false tax returns and one felony count of identity fraud. She was arrested by federal agents earlier today at her residence in Kansas City.
If convicted, each of the tax counts carry a maximum penalty of three years in prison and/or fines up to $100,000; identity theft carries a maximum of five years and/or $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by Internal Revenue Service-Criminal Investigation. Assistant United States Attorney James E. Crowe, Jr., is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Former Hedge Fund Principal Pleads Guilty in Manhattan Federal Court to Stealing over $1 MillionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that BERTON HOCHFELD, the former Manager of Hochfeld Capital Management, L.L.C. (“Hochfeld Capital”), pled guilty today in Manhattan federal court to securities fraud and wire fraud charges in connection with an investment scheme in which he stole more than $1 million from investors. HOCHFELD pled guilty before U.S. District Judge Paul A. Crotty.
Manhattan U.S. Attorney Preet Bharara said: “Berton Hochfeld may have had all the trappings of being a sophisticated investment adviser in control of a limited liability corporation, a partnership and a hedge fund, but at the end of the day he was simply a thief who stole money from the investors who trusted him. Investment fraud is a serious offense that damages investor confidence and the markets, and we will continue to prosecute it aggressively.”
According to the charging instruments in this case and statements made in open court today at the plea proceeding:
HOCHFELD was the Manager and organizer of Hochfeld Capital, a limited liability company incorporated in Delaware that, at various times, maintained an office in New York, New York. Hochfeld Capital, in turn, served as the General Partner of the Heppelwhite Fund, L.P. (the “Heppelwhite Fund”), a hedge fund that was formed to invest in publicly traded securities, mainly in the technology sector. In connection with the management of the Heppelwhite Fund, HOCHFELD made false representations to investors regarding their investments, and misappropriated their money.
For example, by December 2010, HOCHFELD was aware that Hochfeld Capital’s internal accounting for the Heppelwhite Fund reflected an inflated net asset value (“NAV”), as compared to the value reflected in the books of the prime broker where the fund’s assets were actually located. Despite his knowledge of the disparity, HOCHFELD caused monthly statements to be sent to Heppelwhite Fund investors that reflected the inflated NAV calculated by internal accounting records.
From April 2011 through October 2012, HOCHFELD also withdrew money from the Heppelwhite Fund for his own personal use, ultimately misappropriating more than $1 million. During this period, at HOCHFELD’s direction, monthly account statements were provided to Heppelwhite Fund investors that falsely represented the fund’s value by failing to account for the money that he had withdrawn. At a meeting in October 2012, HOCHFELD admitted to certain investors that he had taken more than $1 million from the Heppelwhite Fund and that he spent portions of that money on antiques and vacations.
HOCHFELD, 66, of Stamford, Connecticut, pled guilty to one count of securities fraud and one count of wire fraud. He faces a maximum sentence of 20 years in prison on each count. The defendant also faces a fine of the greater of $5 million or twice the gross gain or gross loss from the offense on the securities fraud charge, as well as a fine of a lesser amount on the wire fraud charge. In connection with his guilty plea, HOCHFELD agreed to forfeit the illegal proceeds of his crimes and will be ordered to pay restitution to the victims of his offenses.
HOCHFELD is scheduled to be sentenced by Judge Crotty on June 27, 2013, at 3:00 p.m.
Mr. Bharara praised the investigative work of the FBI. He also thanked the U.S. Securities and Exchange Commission for their assistance.
This case was brought in coordination with President Barack Obama's Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Jillian Berman is in charge of the prosecution.
Former Employee of Saugus Public Library Sentenced for Stealing Library Funds and Defrauding the GE FoundationRead the Press Release
BOSTON - A Saugus woman was sentenced today for a scheme to steal charitable donations and other funds intended for a local library where she worked
Linda E. Duffy, 66, was sentenced by U.S. District Judge Douglas P. Woodlock to five years in prison, to be followed by three years of supervised release and to pay $965,742 in restitution. In December 2011, Duffy pleaded guilty to four counts of mail fraud, 10 counts of money laundering, and aggravated identity theft.
Beginning around 2004 through 2011, Duffy, who was employed by the Saugus Public Library, diverted funds received for charitable donations and payment of fines from an account in the name of the library to a decoy bank account. She then transferred the funds from the decoy account to her personal account at the same bank. Duffy used the money for personal expenses, including jewelry, home repairs, automotive payments, and her home mortgage payments. She deposited some of the funds into an account in her daughter's name. Duffy also stole funds from a second library account by forging a library official’s signature on about 90 checks.
To boost the funds in the library account, Duffy also deceived the GE Foundation. Since the GE Foundation matches charitable donations by current and former GE employees and their spouses, Duffy posed as the relative of a GE employee, thus deceiving the Foundation into donating over $400,000 to the library to match non-existent donations. Duffy deposited these funds into the decoy account before later transferring them to her own account.
Between 2004 and 2011, Duffy transferred over $850,000 to the decoy account in library donations, fines, fees, and the funds obtained from defrauding the GE Foundation. Duffy was forced to resign in July 2011.
United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation Boston Field Division, made the announcement today. The Saugus Police Department also assisted with the investigation. The case is being prosecuted by Assistant U.S. Attorney Andrew E. Lelling of Ortiz’s Economic Crimes Unit.
Former DHS Worker Sentenced to 37 Months in Prison for FraudRead the Press Release
Oklahoma City, Oklahoma – Yesterday, KATHARINE ANNE DAUGHERTY, 57, of Bethany, Oklahoma, was sentenced to serve 37 months in prison in connection with a scheme to take money by false pretenses from the United States Department of Labor, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Daugherty worked for many years as an Adult Protective Services Specialist with the Oklahoma Department of Human Services ("DHS"). At DHS, Daugherty oversaw the financial accounts of persons placed under the guardianship of DHS Adult Protective Services. In 2009, an Oklahoma state judge appointed DHS as the guardian for "L.J.A.," an elderly man in a Bethany nursing facility. Daugherty was added as a trustee and signatory to L.J.A.’s bank account in May 2009. L.J.A. received monthly disability compensation benefits from the Office of Workers’ Compensation Programs within the United States Department of Labor. L.J.A. died in March 2010, and his entitlement to federal benefits ended upon his death.
On September 11, 2012, Daugherty was charged in a one-count Information with wire fraud. The Information alleged that from March 2010 to May 2011, Daugherty defrauded the Department of Labor through false documents that induced the agency after L.J.A.’s death to continue paying monthly benefits to L.J.A.’s bank accounts that Daugherty controlled. According to the Information, Daugherty caused the Department of Labor to issue more than $27,000 in fraudulent benefits after L.J.A.’s death.
On September 27, 2012, Daugherty pled guilty to the wire fraud count. Daugherty admitted that after L.J.A.’s death, she closed out his case at DHS, but did not notify the Department of Labor of his death. She admitted that in July 2010, months after L.J.A.’s death, she used DHS letterhead to write a letter asking the Department of Labor to mail L.J.A.’s benefits to her at the DHS office. She also admitted that she submitted to the Department of Labor a forged state-court order that appeared to continue DHS guardianship well after L.J.A.’s death. She admitted that in December 2010, she set up and controlled a bank account in L.J.A.’s name to deposit the federal benefits issued in his name. Finally, at the plea hearing, she admitted to using for her personal benefit money that came into L.J.A.’s accounts after his death.
At yesterday’s sentencing, United States District Judge Joe Heaton sentenced Daugherty to 37 months in federal prison, followed by three years of supervised release. Daugherty was ordered to pay restitution to the United States Department of Labor in the amount of $5,451.99. She was also ordered to pay $1,985 in restitution for theft from an unrelated victim under DHS guardianship. Daugherty must report to federal prison on February 4, 2013.
This case is the result of an investigation conducted by the United States Department of Labor – Office of Inspector General and the Oklahoma Department of Human Services – Office of Inspector General. The case was prosecuted by Assistant United States Attorney Chris M. Stephens.
Florida Man Sentenced to 19 ½ Years for Production of Child PornographyRead the Press Release
BOSTON - A Florida man was sentenced today for producing child pornography
Douglas W. Boone, 48, was sentenced by U.S. District Judge Joseph L. Tauro to 19 ½ years in prison and lifetime supervised release for production of child pornography.
In 2010, Boone contacted a 13-year-old Massachusetts girl through the Internet. After communicating with the child for weeks and aware of her age, Boone persuaded her to perform sexual acts for him via the Internet, at least 20 times, between May and August 2010. Boone recorded some of these sessions and shared the videos with hundreds of others via file-sharing websites. Boone also sent the victim sex toys to use on camera for him and he showed himself masturbating to the victim via webcam.
In October 2010, Boone was arrested in Fort Myers, Fla., and has since been in custody.
United States Attorney Carmen M. Ortiz and Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The case was investigated by Massachusetts law enforcement, as well as the Lee County (FL) Sheriff's Office, the U.S. Postal Inspection Service, and the Department of Justice High Technology Investigative Unit. Substantial assistance was provided by the U.S. Attorney's Office for the Middle District of Florida. The case was prosecuted by Assistant U.S. Attorneys Michael Yoon and Stacy Dawson Belf of Ortiz's Major Crimes Unit, and Trial Attorney Andrew McCormack of the Department of Justice Child Exploitation & Obscenity Section.
This case is brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in 2006 by the Department of Justice. Led by the U.S. Attorneys' Offices, and the DOJ’s Criminal Divisions’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 as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Florida Man Sentenced for Role in $30 Million Telemarketing Scam That Victimized over 22,000 PeopleRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Anthony Colon, 37, of Riviera Beach, Florida was sentenced to 70 months in prison, 3 years supervised release, and ordered to pay a $100 special assessment fee. Colon pled guilty to one count of conspiracy to commit mail fraud and wire fraud. The indictment alleged that Colon and others were involved in a telemarketing scam which operated in Florida that bilked over 22,000 victims of $30 million dollars victimizing consumers in all fifty states, the District of Columbia and Puerto Rico, all ten Canadian provinces and the Northwest Territory of Canada. There were at least 54 victims in twenty eight (28) of the thirty eight (38) counties comprising the Southern District of Illinois.
The criminal indictment alleged that Colon worked as a telemarketer for a Universal Marketing Solutions/Creative Vacation Solutions franchise in Palm Beach County, Florida. The indictment alleged that the scheme began October, 2007, and continued through at least January, 2010. Telemarketers for Universal Marketing Solutions and Creative Vacation Solutions placed cold calls to timeshare owners and then falsely represented that their company had actual buyers for the owners’ timeshare property. Telemarketers they supervised then solicited advanced fees of up to several thousand dollars from each victim in purported closing costs that they promised would be refunded to the owner once the closing on the property occurred. Many timeshare owners were told that their closings were scheduled within the next sixty to ninety days. Despite collecting fees from 22,000 victims, these companies were not successful in selling a single timeshare unit, the indictment alleged. Defendants and their co-conspirators, the indictment alleged, simply pocketed the closing costs.
Approximately twenty-four others have been charged in connection with the Creative Vacation Solutions telemarketing scam, the first one being Jennifer Kirk, who pled guilty to a criminal Information on June 30, 2011. She was sentenced on January 9, 2012, to over 16 years in prison and five years supervised release.
The prosecution follows an investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service, the Florida Attorney General’s Office, the Florida Department of Agriculture and Consumer Services, and the Boynton Beach Florida Police Department. The prosecution of the case was handled by Special Assistant U.S. Attorney Katherine Lewis and Assistant U.S. Attorney Bruce Reppert.
Five Arrested in Orange County-Based ‘Builder Bailout’ Mortgage Fraud Scheme That Fraudulently Purchased CondosRead the Press Release
Santa Ana, California – Federal authorities have arrested five people allegedly involved in a “builder bailout” real estate scheme that fraudulently purchased more than 100 condominium units around the country with mortgages that mostly went into default, resulting in foreclosures and millions of dollars in losses.
The scheme, which was operated out of Excel Investments and related companies that were based in Irvine and then Santa Ana, allegedly identified new condominium developments in which the builder-owners were struggling to sell units, and arranged with the builders to sell the units in return for large commissions. The builders benefitted by making it appear that their condos were selling and maintaining their value, while those involved with the fraudulent sale of the units financially benefitted from the hefty commissions that were concealed from the mortgage lenders. The defendants recruited a number of straw buyers to purchase the properties as “investors,” and ensured that they qualified for financing by fabricating important aspects of their loan applications.
The five defendants were arrested yesterday by special agents with the FBI, the Federal Housing Finance Agency’s Office of Inspector General, and IRS - Criminal Investigation. Those taken into custody are:
Aref Abaji, 31, of Aliso Viejo, a real estate agent;Maher Obagi, 26, of Huntington Beach, the brother of Aref Abaji;
Jacqueline Burchell, 52, of Orange, an escrow agent;
Mohamed Salah, 37, of Mission Viejo; and
Mohamed El Tahir, 35, of Glen Burnie, Maryland.
A sixth defendant named in the indictment – mortgage loan officer Wajieh Tbakhi, 48, of Corona – is being sought by federal authorities.
According to an indictment returned last Friday by a federal grand jury in Los Angeles, the defendants involved in the scheme negotiated with the builders of new housing developments in California, Florida and Arizona to sell condominium units on behalf of builders in exchange for a hefty commission, which they often misleadingly referred to as “marketing fees” and did not disclose to the lenders. In each of the transactions – the indictment alleges there were more than 100 of them – the defendants earned commissions of $50,000 to $100,000, and sometimes more. The defendants bought units for themselves, their relatives, and on behalf of “investors” with good credit scores who served as “straw buyers.” They allegedly recruited the straw buyers by presenting the scheme as an investment opportunity which required no down payment and would generate income through rental payments.
To obtain mortgages for the properties, the defendants allegedly prepared loan applications with false information about the buyers’ employment, income and assets. They allegedly submitted fabricated and altered W-2 forms, pay stubs and bank statements in support of those applications. According to the indictment, they concealed the huge commissions from mortgage lenders by submitting false Settlement Statements – or Form HUD-1s – which omitted these large payments.
When many of the loans defaulted and led to foreclosure, the lending institutions suffered losses of at least $6.2 million. The Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal National Mortgage Association (Fannie Mae) purchased dozens of these loans on the secondary mortgage market and suffered losses of at least $2.37 million as a result of delinquencies, defaults and foreclosures on the properties.
The six defendants named in the indictment are all charged with conspiring to commit bank fraud and wire fraud. Abaji, Obagi, Tbakhi and Burchell are additionally charged with six counts of wire fraud.
Release No. 13-005
Felon in Possession of Firearm Sentenced to Federal PrisonRead the Press Release
Eugene, Ore. - On January 9, 2013, Michael Dean Wasson, 53, was sentenced by U.S. District Chief Judge Ann Aiken to the statutory maximum sentence, 113 months and 15 days in federal prison, for unlawful possession of a firearm and ammunition. Upon his release from prison, Wasson will be on supervised release for three years.
On June 29, 2012, Oregon State Police Troopers and Officers with the Lane County Sheriff's Office responded to a call about Wasson threatening to kill his elderly parents and carrying a firearm. Upon arrival, Wasson was armed with a loaded AK-47 type semiautomatic rifle. As Wasson turned towards the officers with the rifle, a Trooper fired a shot at defendant that forced Wasson to drop the AK-47. Defendant has multiple felony convictions, including rape in the first degree.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Oregon State Police, and the Lane County Sheriff's Office, and was prosecuted by Assistant U.S. Attorney Nathan J. Lichvarcik. The Lane County District Attorney's Office is also prosecuting Wasson based upon an unrelated alleged assault.
Federal Jury Returns Guilty Verdict for Cocaine TraffickerRead the Press Release
Conspiracy With Cartel Connections Involved Over 700 Kilograms Of Cocaine
CHARLOTTE, NC B A Charlotte federal jury convicted today Pedro Oscar Dieguez, also known as “The Cuban,” 48, of Indian Trail, N.C., on cocaine trafficking and related charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Tompkins is joined in making today’s announcement by Harry S. Sommers, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office; Sheriff Eddie Cathey of the Union County Sheriff’s Office (UCSO), and Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department (CMPD).
According to filed court documents and evidence presented at trial:
From about 2004 through 2013, Dieguez – a Cuban national – and his co-conspirators obtained more than 700 kilograms of cocaine from Mexican cartels (or other sources of supply with connections to cartels), transported it using trucks to the Charlotte area, and redistributed it for ultimate sale as crack cocaine. The current street value of that amount of cocaine is in excess of $21,000,000. Dieguez conspired to launder the drug proceeds through bank accounts and the purchase of expensive exotic horses, which he kept on his 16-acre ranch residence in Indian Trail. The defendant also used his ranch to offload shipments of drugs. Following a four-day trial, the Charlotte jury convicted Dieguez of conspiracy to distribute and to possess with intent to distribute cocaine and conspiracy to launder proceeds of drug trafficking.
Dieguez has been in the federal custody since April 24, 2013. Dieguez faces a statutory mandatory minimum sentence of 10 years to life in prison, and a fine of up to $10,000,000. A sentencing date has not been set yet.
The case was investigated by the DEA in Charlotte, UCSO, and CMPD. The prosecution was handled by Assistant U.S. Attorney Steven R. Kaufman.
Estrade IndictmentRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr. announced that an Indictment was returned today against GERALD ESTRADE for threatening to murder a former federal law enforcement officer in violation of federal law. A complaint was filed and arrest warrant issued on January 8, 2013 and Estrade was taken into federal custody at that time.
Gerald Estrade, 56, Baton Rouge, LA is charged with threatening to kill the former United States Attorney for the Eastern District of Louisiana, James “Jim” Letten, and his family.
If convicted, Estrade faces a maximum penalty of a term of imprisonment of ten (10) years, a $250,000 fine, or both, and a mandatory special assessment of $100. Additionally, he may be required to serve a term of supervised release of three (3) years.
This investigation is being handled by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Jennifer M. Kleinpeter, who serves as a Deputy Criminal Chief.
Erie Man Indicted on Fraud ChargesRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of wire fraud, United States Attorney David J. Hickton announced today.
The ten-count indictment named Peter Jerard Turk, 60, as the sole defendant.
According to the indictment presented to the court, from in and around January 2009 to in and around September 2012, Turk used a Nigerian advance fee scheme to defraud a former acquaintance out of over $700,000.00.
The law provides for a maximum total sentence of 200 years in prison, a fine of $2,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Eagle Butte Man Pleads Guilty to AssaultRead the Press Release
US Attorney Brendan V. Johnson announced that Ryan Wright, age 27, of Eagle Butte, appeared before US District Judge Roberto A. Lange on January 10, 2013, and pled guilty to Count III of the Indictment that charged him with Assault Resulting in Serious Bodily Injury. The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both.
The charge stems from a November 14, 2012, incident when Wright, after an evening of drinking to celebrate a move to a new residence, argued with other people present, left the residence but came back and hit the victim with his car, running the victim over several times. The victim suffered fractures in his left ankle and pelvis which required surgery.
The investigation was conducted by the Bureau of Indian Affairs. Assistant US Attorney Kathryn N. Rich is prosecuting the case. Wright was remanded to the custody of the US Marshal pending sentencing. A sentencing date has been set for April 1, 2013.
Denton County Man Sentenced for Child Exploitation ViolationsRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas – A 53-year-old Hickory Creek, Texas man has been sentenced to federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Perry Joe Wicks pleaded guilty on June 15, 2013, to online enticement of a minor to engage in sexual activity and was sentenced to 121 months in federal prison on Jan. 9, 2013 by U.S. District Judge Richard Schell.According to information presented in court, Wicks communicated with law enforcement agents who were acting in an undercover capacity. The law enforcement agents represented that they were a minor female who was available for sexual activity for a price. Wicks agreed to pay for sex with the minor female and was apprehended by law enforcement. As a result of this conviction, Wicks will be placed on the required to register as a sex offender following his imprisonment.
This case was investigated by the Plano Police Department, the Collin County Sheriff’s Office and the U.S. Secret Service and prosecuted by Assistant U.S. Attorney Mandy Griffith. ####
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Dalton Meth Dealer Sentenced to PrisonRead the Press Release
McGuire Fought Police Officers When Being Arrested
And Later Tried To Escape From the HospitalROME, Ga. – A Dalton man who sold a pound of methamphetamine to a police cooperator, Jeffrey McGuire, 40, of Dalton, Georgia, was sentenced today to 11 years, 6 months by United States District Judge Harold L. Murphy for selling a pound of methamphetamine to a man cooperating with the police investigation.
“Methamphetamine has had a devastating impact on communities in North Georgia,” said United States Attorney Sally Quillian Yates. “This defendant was caught trying to sell a pound of very pure methamphetamine. Today’s prison sentence will prevent this meth dealer from further contributing to the deterioration of our community.”
McGuire was sentenced to 11 years, 6 months to be followed by 4 years of supervised release. McGuire was convicted on October 18, 2012, upon his plea of guilty.
According to United States Attorney Yates, the charges and other information presented in court, in January 2012, McGuire agreed to sell one pound of methamphetamine to a man for $17,000. Unbeknownst to McGuire, his customer was cooperating with the police investigation and was working at the direction of the police. The police recorded phone calls between McGuire and the cooperator as they made arrangements for the drug deal. During one of those calls, the cooperator told McGuire that he would keep the money for the drugs in the trunk of his car. McGuire responded, “There better not be a Mexican in the trunk or I’ll have to shoot him.”
Eventually, McGuire and the cooperator agreed to meet at a Kangaroo gas station in Dalton. The police observed McGuire arrive in a BMW SUV. The cooperator arrived a few minutes later and parked next to McGuire’s SUV. McGuire got into the passenger seat of the cooperator’s car and showed him the drugs. The cooperator then gave a prearranged signal to the police that McGuire had the methamphetamine. The police moved in to arrest McGuire and pulled him out of the cooperator’s car. However, McGuire vigorously resisted arrest. It took the police several minutes to subdue and restrain him. The police recovered a pound of methamphetamine that was 90% pure. They also found a loaded .25 caliber pistol in the SUV.
Due to injuries that McGuire received while resisting arrest, he was taken to the hospital. A Whitfield County deputy sheriff was present to guard him. Despite the deputy sheriff’s presence, McGuire tried to escape. He ran down the hospital hallway and twice struck a nurse. Even after the deputy sheriff used a Taser on McGuire, he continued to struggle and tried to grab the deputy sheriff’s firearm. The deputy sheriff was ultimately able to use sufficient force to subdue McGuire.
This case was investigated by special agents of the Federal Bureau of Investigation, the FBI Conasauga Safe Streets Task Force, and Whitfield County Sheriff’s Office.
Assistant United States Attorneys Nekia S. Hackworth and Paul R. Jones 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.
Cristian Edgardo Mejia-diaz Pleads Guilty to Illegal Re-entryRead the Press Release
CRISTIAN EDGARDO MEJIA-DIAZ, age 25, a citizen of El Salvador, pled guilty in federal court today before U. S. District Judge Nannette Jolivette Brown to a one-count indictment charging him with illegal re-entry by a removed alien, announced U. S. Attorney Dana J. Boente.
According to court documents, on November 13, 2012, MEJIA, an alien who had previously been removed from the United States, was found in Jefferson Parish, within the Eastern District of Louisiana, without having obtained consent from the Secretary of the Department of Homeland Security to reapply for admission to the United States.
The single count carries a maximum statutory penalty of two (2) years imprisonment, a fine of $250,000, and one (1) year of supervised release following any term of imprisonment. Sentencing is scheduled for April 18, 2013 at 10:00 A.M.The case was investigated by U. S. Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations with assistance from the Jefferson Parish Sheriff’s Office. The case is being prosecuted by Special Assistant U. S. Attorney Robert Weir.
(Download Indictment )
Corporate Employee Sentenced for Embezzlement and Tax FraudRead the Press Release
PHILADELPHIA - Sheila Kaye Jameson, 55, of Blandon, PA, was sentenced today to 48 months in prison for embezzlement and tax fraud. In addition to the prison term, U.S. District Court Judge Lawrence Stengel ordered restitution in the amount of $1,864,024 to EnerSys and its insurer, and taxes owed to the IRS in the amount of $256,447 (excluding penalties and interest), and three years of supervised release three years. She must report to the Bureau of Prisons on March 11, 2013.
Jameson was a Logistics Analyst for EnerSys Corporation in Reading, Pennsylania, when she embezzled approximately $1.8 million dollars from EnerSys Corporation by using a shell corporation, Aries Consulting Group. She created Aries Consulting for the purpose of sending bogus invoices to EnerSys, requesting payment which Aries Consulting Group was not entitled to receive. Jameson also failed to include any of the embezzled income on federal income tax returns that she filed with the Internal Revenue Service. She pleaded guilty to mail fraud and filing false tax returns.
The case was investigated by the FBI and the Internal Revenue Service Criminal Investigation and was prosecuted by Assistant United States Attorney Floyd J. Miller.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Connecticut Man Admits Mailing Threatening LettersRead the Press Release
January 10, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that ROLAND PREJEAN, also known as “Gary Joseph Gravelle,” 45, formerly of Thomaston and Morris, Conn., pleaded guilty today before Senior United States District Judge Warren W. Eginton in Bridgeport to federal charges stemming from his mailing of multiple threatening letters.
“We will vigorously investigate and prosecute hoax crimes that threaten violence,” stated U.S. Attorney Fein. “These crimes cause emotional distress for victims and waste the valuable time and resources of our law enforcement community.”
According to court documents and statements made in court, in early September 2010, PREJEAN mailed a threatening letter to the Thomaston Post Office claiming that he had planted a hidden bomb on a remote timer in the Post Office. The letter resulted in the evacuation of the Thomaston Post Office as well as the Thomaston Town Hall and a Thomaston Public School, which were in the immediate vicinity of the Post Office. Bomb technicians from the Connecticut State Police Emergency Services Unit searched the post office for explosive or incendiary devices with negative results.
In addition, PREJEAN mailed a letter to a Connecticut Superior Court Judge in New London that included a substance that was represented to be “Liquid Anthrax,” and he sent threatening letters to a private individual and a probation officer in Connecticut. In those letters PREJEAN threatened to kill numerous people, including a federal employee.
PREJEAN, who has been detained since his arrest in North Dakota on September 7, 2010, pleaded guilty to one count of using the U.S. Mail to communicate a bomb threat and four counts of mailing threatening communications.
Judge Eginton has scheduled sentencing for April 8, 2013, at which time PREJEAN faces a maximum term of imprisonment of 10 years for making a bomb threat through the mail, a maximum term of imprisonment of 10 years for mailing a threatening communication to federal employees and a maximum term of imprisonment of five years of each of the three counts of mailing a threatening communication.
At sentencing, the government will present evidence of more than 50 other threatening letters that PREJEAN mailed both prior to his arrest and while he was detained in federal custody.
U.S. Attorney Fein commended the substantial efforts and cooperation of the several agencies involved in this investigation including the Federal Bureau of Investigation in New Haven, Minneapolis, and Bismarck; the United States Postal Inspection Service in Connecticut and North Dakota; the United States Marshals Service in Connecticut; the Connecticut State Police Emergency Services Unit and the Thomaston Police Department.
U.S. Attorney Fein also acknowledged the critical assistance provided by the U.S. Attorney’s Office for the District of North Dakota.
This case is being prosecuted by Assistant United States Attorney David E. Novick.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Cleveland Man Sentenced to Three Years in Prison for Crimes Related to Credit-Union CollapseRead the Press Release
Zrino Jukic was sentenced to 37 months in prison and ordered to pay nearly $1.7 million in restitution for crimes related to the collapse of the St. Paul Croatian Federal Credit Union.
Jukic, 42, of Cleveland, previously pleaded guilty to one count of bank fraud and one count of money laundering.
Jukic was a co-owner of the Zlato Group, along with Anthony Raguz, who also served as the credit union’s chief operating officer. Jukic engaged in a scheme to defraud the credit union by providing false information in connection with approximately 11 loan applications. The proceeds of these fraudulent loans were used to allow Jukic and Raguz -- through their company, the Zlato Group -- to invest in certain business ventures, according to court documents.
Jukic also engaged in a money laundering transaction by transferring fraudulently obtained funds from a Zlato Group bank account to his own bank account, according to court documents.
St. Paul Croatian Federal Credit Union (SPCFCU) was placed into conservatorship in April 2010, when it served 5,400 members and was believed to have assets of more than $238 million. The National Credit Union Association discontinued operation of SPCFCU when it was determined to be insolvent, making it the largest credit-union failure in American history.
To date, 24 people have been indicted for criminal activity related to the credit union. Raguz was sentenced to 14 years in prison and ordered to repay $72.5 million last year. Koljo Nikolovski was sentenced to 18 years in prison for his role in the credit-union collapse.
This case was prosecuted by Assistant U.S. Attorneys Bridget M. Brennan and Jack Sammon following an investigation by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigations.
Cincinnati Man Pleads Guilty to Conspiring to Use Stolen Identities to Claim Millions in Fraudulent Income Tax ReturnsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Tawanda Marimbire, 23, of Cincinnati pleaded guilty in U.S. District Court to conspiring with others to use stolen identities and obtain fraudulent income tax refunds.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Mark Porter, Special Agent in Charge, U.S. Secret Service, and Darryl Williams, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office (IRS), announced the plea entered today before Chief U.S. District Judge Susan Dlott.
Mirambire pleaded guilty to one count of conspiracy to commit wire fraud. According to court documents, Mirambire and others began the conspiracy in 2007 and continued through approximately April 2012.
Members of the conspiracy stole identities and used them to file fraudulent income tax returns, receiving refunds on debit cards. Once the false income tax refunds were deposited on the prepaid debit cards, the cash was removed from the debit cards at ATM machines or by purchasing money orders. Mirambire and other coconspirators then committed additional federal offenses through their attempts to transfer, conceal, and divert the proceeds of this criminal activity. The cash was sometimes used by the conspirators to purchase expensive vehicles for transport to Zimbabwe. Mirambire and other conspirators also transferred the fraud proceeds to Zimbabwe in various ways, including direct wires.
The plea agreement says there were more than 250 victims and the amount of loss is between $2.5 million and $7 million.
Mirambire was one of seven indicted in September 2012. Charges against others are pending. Five of those charged remain fugitives. They are:
Kudzaiishe C. Marimbire, 34
Hlomera Mabhande, 30
Johanes Tagarisa, 37
Andrew T. Bere, 22
Julius Marimbire, 32The remaining defendant is on bond.
Conspiracy to commit wire fraud is punishable by up to 20 years in prison. Judge Dlott will schedule a sentencing hearing.
Assistant United States Attorney Timothy Mangan is representing the United States in this case.
Cellular Telephone Store Robber SentencedRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that MARQUAIL EARL MOURING, 23, of Greenville, North Carolina, was sentenced today by Senior United States District Judge Malcolm J. Howard for his role in a cellular telephone store robbery in Greenville in May of 2011. On May 3, 2011, MOURING and two co-defendants robbed, at gunpoint, the U.S. Cellular store on Southwest Greenville Boulevard in Greenville, netting $1,080.00.
On October 15, 2012, MOURING pled guilty to a count of Hobbs Act Robbery, in violation of Title 18, United States Code, Section 1951, and a count of using or carrying a firearm during and in relation to a crime of violence, or possessing a firearm in furtherance of a crime, in violation of Title 18, United States Code, Section 924(c)(1)(A).
Senior Judge Howard sentenced MOURING to 108 months in prison and 5 years of supervised release. MOURING was also ordered to pay restitution to U.S. Cellular in the amount of $1,080.00.
One other defendant, Julius Deshawn Hobbs of Greenville, was previously sentenced to 132 months for his role in this robbery and two others. The remaining defendant, James Arthur Acklin, Jr. of Greenville, has pled guilty in the case and is pending sentencing at a future date.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greenville Police Department. Assistant United States Attorney John Bennett is prosecuting the case.
California Man Sentenced to More Than 24 Years for Role in Drug Trafficking Organization ConspiracyRead the Press Release
Tampa, Florida - U.S. District Judge James S. Moody, Jr. today sentenced Sergio Godinez Del Toro (47, Napa, California) to 24 years and four months in federal prison for conspiring with others to distribute, and for aiding and abetting others in possessing with intent to distribute, 500 grams or more of methamphetamine. Godinez Del Toro was found guilty on October 16, 2012, following a jury trial.
According to testimony presented at trial, Godinez Del Toro was a leader in a California-based drug trafficking organization (DTO) that was attempting to establish a methamphetamine and marijuana distribution network in central Florida. In January 2012, the DTO shipped eight pounds of marijuana to Haines City, sold the marijuana, and laundered the proceeds through banks in Pasco County.
In February 2012, the DTO attempted to transport twelve pounds of methamphetamine to Dade City, Florida from California, through Arkansas. The drugs were intercepted by the Drug Enforcement Administration and Arkansas State Police, outside of Jonesboro, Arkansas.
In March 2012, the DTO shipped a total of 24 pounds of methamphetamine (valued at $320,000) to Dade City, in six separate UPS shipments. Godinez Del Toro arrived in Dade City on March 28, after the methamphetamine had been shipped, to oversee the distribution and transfer of the drug proceeds back to California. On March 30, he transferred at least $6,000 in drug proceeds through two separate banks. On April 5, 2012, the DEA and the Pasco County Sheriff's Office seized seven pounds of the methamphetamine and arrested Godinez Del Toro and two of his co-conspirators.
This case was investigated by the Drug Enforcement Administration and the Pasco County Sheriff's Office as part of an on-going Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation's drug supply. The case was prosecuted by Assistant United States Attorney Christopher F. Murray.Buffalo man sentenced for attempted receipt of child pornographyRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Robert P. Dombrowski, 51, of Buffalo, N.Y., who was convicted of attempted receipt of child pornography, was sentenced to 60 months in prison and 10 years supervised release by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Edward H. White, who handled the case, stated that between February 7, 2012 and March 9, 2012, the defendant engaged in chats over the internet with undercover FBI Agents who were posing as a fifteen year old girl. During the chats, Dombrowski attempted to receive child pornography through the internet on his home computer. The defendant also made plans to meet with who he thought was a fifteen year old girl at a restaurant with the purpose of engaging in sexual activity with the girl involving sex toys. The defendant was apprehended by law enforcement officials who discovered the sex toys referenced in the chats in the defendant’s vehicle.
The sentencing is the culmination of an investigation on the part of Agents of the Federal Bureau of Investigation, under the direction of Richard M. Frankel, Acting Special Agent in Charge, the Cheektowaga Police Department under the direction of David Zack, Chief of Police, and the Violent Crimes Against Children Task Force.Boyette SentencedRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr., announced that RICHARD GLENN BOYETTE, age 48, of Zachary, Louisiana, was sentenced today by U.S. District Judge James J. Brady to a term of imprisonment of fifty-one (51) months.
BOYETTE had previously pled guilty to mail fraud in connection with a multi-year scheme to defraud Commercial Tire of Louisiana, Inc. (“Commercial Tire”), located in Baker, Louisiana, with offices in Scott and Hammond. While working as the company’s Controller, from 2001 through late 2010, BOYETTE admitted defrauding the company and its employees. To execute the scheme, the defendant (a) created and approved fraudulent payroll checks to himself, which he was not authorized to receive; (b) obtained fraudulent payroll checks and gained control over the funds; (c) created false entries in the company’s accounting records that falsely reflected that the fraudulent payroll checks had actually been issued to other employees; and (d) prepared and distributed fraudulent W-2s that concealed the stolen funds.
At today’s sentencing, the Court found that BOYETTE’s fraudulent scheme caused a loss to Commercial Tire of more than $1.2 million. Accordingly, BOYETTE was ordered to pay restitution in the amount of $1,283,151. BOYETTE was also ordered to forfeit an additional $1,283,151 to the United States as proceeds of his crime. Following his release from imprisonment, BOYETTE will also be required to serve a two-year term of supervised release.
This investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Alan A. Stevens and James P. Thompson.
Bobbi Rochelle Hurley Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on January 10, 2013, before U.S. District Judge Dana L. Christensen, BOBBI ROCHELLE HURLEY, a 42-year-old resident of Seeley Lake, appeared for sentencing. HURLEY was sentenced to a term of:
- Community Confinement: 8 months
- Special Assessment: $100.00
- Probation: 5 years
HURLEY was sentenced in connection with her guilty plea to being a felon-in-possession of a firearm.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
On September 24, 2011, HURLEY, a convicted felon on state supervision, possessed a Smith & Wesson .44-magnum revolver in the Lolo National Forest. United States Forest Service officers and fire suppression crews located HURLEY and her boyfriend while investigating an out of control/run away campfire. The USFS officers and fire suppression crew members saw HURLEY and her boyfriend shoot the revolver at green trees near them. HURLEY later admitted that she shot the revolver.
A USFS wild land firefighter observed both HURLEY and her boyfriend shoot the revolver across the drainage in a south/southeasterly direction from his location. The firefighter then advised them to stop shooting due to firefighters and the helicopter in the area fighting the fire. They complied with his request.
During this time, HURLEY lost her keys and requested a ride to Seeley Lake. The USFS officer who gave HURLEY and her boyfriend a ride secured a Smith & Wesson .44 magnum revolver, model 629-3. The officer unloaded several rounds from the revolver and secured in the front seat of his patrol vehicle while transporting them. The officer then returned the revolver to HURLEY's boyfriend as he did not run a criminal history check on either one until November 2, 2011.
When interviewed later, HURLEY stated that she unsure how many times she fired the pistol. HURLEY acknowledged that she was a convicted felon who could not possess firearms.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that HURLEY will likely serve all of the time imposed by the court. In the federal system, HURLEY does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Law Enforcement and Investigations Division of the U.S. Forest Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Montana Probation and Parole.
Beckley Man Sentenced to Prison Time for Burglary of Federal Post OfficeRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced that a Raleigh County man was sentenced (Jan. 10) to one year in federal prison followed by two years of supervised release for burglary and aiding and abetting the burglary of a federal post office. Timothy Taylor, 31, of Beckley, was previously convicted in August 2012 by a federal jury sitting in Beckley for his role in the post office burglary scheme. Trial evidence revealed that Taylor forcibly broke into or aided and abetted co-defendant Benjamin Webb, 39, in the forcible break-in of the Fairdale Post Office.
Webb admitted that on October 30, 2011, he and co-defendant Taylor arrived at the Fairdale Post Office located in Beckley, W.Va. and gained entry into the post office by smashing a glass door using a sledgehammer. The post office was closed at the time the burglary occurred. Webb further admitted that once he and Taylor were inside of the post office, they stole nine packages and fled the scene.
Webb also admitted that the packages stolen from the post office were addressed to him and contained quantities of prohibited synthetic stimulants commonly known as “bath salts.”
Webb was previously sentenced in August 2012 to eight months in federal prison and three years of supervised release for his role in the scheme.
The Court also ordered the defendant to pay restitution in an amount not to exceed $1228, including the damage to the post office and the value of the stolen mail.
The United States Postal Inspection Service and the Raleigh County Sheriff’s Office conducted the investigation. Assistant United States Attorneys Erik Goes and Larry Ellis handled the prosecution. The sentence was imposed by United States District Judge Irene C. Berger.
Beavers SentencedRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr., announced that RAYMOND L. BEAVERS, age 48, of Denham Springs, Louisiana, was sentenced today by U.S. District Judge James J. Brady to serve twelve months and one day in federal prison. BEAVERS was also ordered to pay $127,600 in restitution to the United States Coast Guard, and ordered to forfeit an additional $69,637.15 as proceeds of his offenses.
BEAVERS previously pled guilty to two counts of mail fraud arising out of a lengthy scheme to defraud the Coast Guard, from February 2007 through March 2008, while serving as the Supervisor of the United States Coast Guard’s Electronic Support Detachment (“ESD”) at the Eighth District in New Orleans, Louisiana. In connection with his guilty plea, BEAVERS admitted that he stole electronics equipment from the Coast Guard and sold the equipment, often using eBay and PayPal, for his own personal profit. The equipment had a value of more than $120,000.
“Today's sentencing demonstrates our commitment to fully prosecuting those who try to defraud the federal government and the American taxpayer,” said Capt. Jon Gage, commanding officer of Coast Guard Base New Orleans. “The illegal activity was uncovered and successfully prosecuted because of the staunch partnership between the Coast Guard Investigative Service, the U.S. Attorney's Office, and other federal agencies.”
U.S. Attorney Donald J. Cazayoux, Jr., stated, “We appreciate the work of the Coast Guard Investigative Service to uncover the defendant’s scheme. We will continue to work with our law enforcement partners to investigate and prosecute this type of criminal activity, especially when committed by those who occupy positions of public trust.”
This investigation was conducted by the United States Coast Guard Investigative Service and the U.S. Department of Homeland Security, Office of Inspector General, with assistance from the Louisiana State Police and the Walker Police Department.
The case is being prosecuted by Assistant United States Attorneys Alan A. Stevens and James P. Thompson.
Barrio Azteca Associate Sentenced in Texas to 18 Months in Prison for Role in Racketeering ConspiracyRead the Press Release
WASHINGTON – An associate of the Barrio Azteca (BA), a trans-national border gang allied with the Juarez Cartel, was sentenced today to serve 18 months in prison, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Robert Pitman for the Western District of Texas, FBI Special Agent in Charge Mark Morgan of the FBI’s El Paso, Texas, Office and Administrator Michele M. Leonhart of the U.S. Drug Enforcement Administration (DEA).
April Cardoza, 24, was sentenced today by U.S. District Judge Kathleen Cardone in the Western District of Texas. In addition to her prison term, Cardoza was sentenced to serve five years of supervised release.
On Oct. 18, 2012, Cardoza pleaded guilty to one count of conspiracy to commit racketeering offenses (RICO).
According to court documents and information presented in court throughout this case, the Barrio Azteca is a violent street and prison gang that began in the late 1980s and expanded into a transnational criminal organization. In the 2000s, the BA formed an alliance in Mexico with “La Linea,” which is part of the Juarez Drug Cartel (also known as the Vincente Carrillo Fuentes Drug Cartel or “VCF”). The purpose of the BA-La Linea alliance was to battle the Chapo Guzman Cartel and its allies for control of the drug trafficking routes through Juarez and Chihuahua. The drug routes through Juarez, known as the Juarez Plaza, are important to drug trafficking organizations because they are a principal illicit drug trafficking conduit into the United States.
According to court documents and information presented in court, Cardoza assisted the BA by providing communication to and from BA members, including BA Captain Manuel Cardoza, and facilitating money laundering.
Cardoza and 34 other BA members and associates based in the United States and Mexico were charged in a 12-count third superseding indictment unsealed in March 2011. The indictment contains charges related to various alleged criminal acts, including racketeering, narcotics distribution and importation, retaliation against persons providing information to U.S. law enforcement, extortion, money laundering, obstruction of justice and murder, including the 2010 Juarez consulate murders.
Of the 35 defendants charged, 33 have been apprehended. Twenty-five of those defendants, including Cardoza, have pleaded guilty. One defendant committed suicide while imprisoned during his trial. Another defendant was extradited from Mexico and is awaiting trial. Six other defendants are pending extradition from Mexico. U.S. and Mexican law enforcement are actively seeking to apprehend the two remaining fugitives in this case, including Luis Mendez and Eduardo Ravelo, an FBI Top Ten Most Wanted Fugitive.
The case is being prosecuted by Trial Attorney Joseph A. Cooley of the Criminal Division’s Organized Crime and Gang Section, Trial Attorney Brian Skaret of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney John Gibson of the Western District of Texas, El Paso Division. The U.S. Attorney’s Office for the District of New Mexico provided significant assistance in this case, including by Assistant U.S. Attorney Sarah Davenport. Valuable assistance was provided by the Criminal Division’s Offices of International Affairs and Enforcement Operations.
The case was investigated by the FBI’s El Paso Field Office, Albuquerque Field Office (Las Cruces Resident Agency), DEA Juarez and DEA El Paso. Special assistance was provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement; the U.S. Marshals Service; U.S. Customs and Border Protection; Federal Bureau of Prisons; U.S. Diplomatic Security Service; the Texas Department of Public Safety; the Texas Department of Criminal Justice; El Paso Police Department; El Paso County Sheriff’s Office; El Paso Independent School District Police Department; Texas Alcohol and Beverage Commission; New Mexico State Police; Dona Ana County, N.M., Sheriff’s Office; Las Cruces, N.M., Police Department; Southern New Mexico Correctional Facility; and Otero County Prison Facility New Mexico.
Attorney Sentenced to Seven Years in Prison for Racketeering and Money Laundering Offenses Committed on Behalf of Mexican MafiaRead the Press Release
LOS ANGELES – A federal criminal defense attorney was sentenced this afternoon to seven years in federal prison for his conviction on racketeering and money laundering offenses committed on behalf of the Mexican Mafia and the 18th Street gang.
Isaac Guillen, 52, received the 84-month sentence from United States District Judge Dean D. Pregerson.
Guillen was a member of a street gang during his late teens, leaving that life behind to attend the UCLA School of Law and become a successful criminal defense attorney. But he became an associate of the Columbia Lil' Cycos (CLCS) clique of the 18th Street gang while doing legal work for a member of that criminal street gang.
Guillen admitted that he used the shield of the attorney-client privilege to relay CLCS communications to and from convicted Mexican Mafia member Francisco “Puppet” Martinez, who was serving multiple life sentences at the federal “supermax” prison in Florence, Colorado. With Guillen’s help, Martinez was able to continue to run the CLCS from behind the walls of the United States Penitentiary, Administrative Maximum Facility, which is regarded as the nation’s most secure prison.
In addition to facilitating communications between Martinez and the CLCS leadership, Guillen laundered more than $1.3 million dollars in drug and extortion proceeds on the organization’s behalf by, among other things, creating three businesses and providing funds for the establishment of a methamphetamine laboratory.
The State Bar of California disbarred Guillen in late 2010.
According to court documents and evidence presented at trial, the CLCS used violence and intimidation to control narcotics distribution in an area adjoining MacArthur Park in the Westlake District of Los Angeles. Under the orders of CLCS leadership, narcotics suppliers and street dealers paid “rent” – typically a percentage of proceeds from the sale of narcotics – in exchange for permission from the CLCS to sell narcotics in the gang’s territory. Those who paid rent received the exclusive authorization to sell narcotics in CLCS territory, as well as protection from rivals. Street vendors operating in CLCS Organization territory also were required to pay rent to the organization in order to be allowed to sell their wares near MacArthur Park. The CLCS made tens of thousands of dollars a week through its collection of rent. The failure or refusal to pay rent and otherwise follow the gang’s rules would result in retribution, including acts of violence.
A street vendor who refused to make a $50 rent payment to the CLCS was targeted to be killed by members of the gang in a shooting on September 15, 2007. The man survived despite being shot four times, but a 23-day-old infant sleeping in a stroller next to the vendor was struck and killed.
Forty-three members and associates of the CLCS were charged in a 2009 federal racketeering indictment that alleged acts of violence, narcotics distribution, money laundering and various violent crimes in aid of racketeering (VICAR). Thirty-seven of the defendants named in the indictment have been convicted in either federal or state court. The remaining six defendants are fugitives.
The CLCS racketeering case was investigated by the Federal Bureau of Investigation and the Los Angeles Police Department.
Release No. 13-006
Armed Career Criminal Sentenced to 188 Months ImprisonmentRead the Press Release
Yakima – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that David Allen Vickers, age 40, of Yakima, Washington , was sentenced for being a felon in possession of a firearm. Senior District Court Judge Fred Van Sickle determined that, based on Vickers' lengthy criminal history which includes convictions for violent crimes and drug trafficking, he is an armed career criminal. Accordingly, Judge Van Sickle sentenced Vickers to a 188 month term of imprisonment, to be followed by a 5 year term of court supervision upon release from Federal prison. The Defendant has been in custody since his arrest on January 19, 2012.
On October 4, 2012, Vickers pleaded guilty to the charge of being a previously convicted felon in possession of a firearm. According to information disclosed during the proceedings in this case, on January 19, 2012, the Vickers armed himself with a shotgun and entered a convenience store located in Yakima, Washington. Vickers attempted to rob the business owner. The business owner grabbed the shotgun during the attempted robbery. The shotgun discharged during the struggle. Vickers then ran out of the store. The business owner chased Vickers and fought with him in the snow. During the struggle, the business owner was able to take possession of the shotgun. Vickers then attempted to obtain a ride from citizens driving in the area. Officers with the Yakima Police Department were called to the scene and quickly arrested him. Vickers claimed that he had been forced to commit the robbery to pay for a drug debt.
Michael C. Ormsby said, "The United States Attorney's Office, the Yakima Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, are committed to working in partnership to protect communities from convicted felons who possess firearms and endanger the lives of citizens within the Eastern District of Washington." Mr. Ormsby emphasized that overriding personal safety concerns dictate that private citizens should seek assistance from law enforcement officials rather than confronting and engaging armed criminals.
This matter was investigated by the Yakima Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Tom Hanlon, an Assistant United States Attorney for the Eastern District of Washington.
12-CR-02036-FVS-1
Apple Valley Woman Charged with Defrauding Home Health Care Company, MedicaRead the Press Release
MINNEAPOLIS—Yesterday in federal court, an Apple Valley woman was charged with defrauding both her employer and Medica. On January 9, 2012, Lori Jo Mueller, age 48, was charged via an Information with one count of wire fraud and one count of health care fraud.
Allegedly, from June of 2006 through June of 2012, Mueller embezzled approximately $840,000 from Edelweiss Home Health Care and used the funds for her personal use. Mueller began working for Edelweiss, located in Osseo, in 2002, and was promoted to the position of vice president of operations. In that capacity, Mueller was responsible for the review and payment of corporate invoices, bookkeeping, and other financial matters. Mueller allegedly used her access to the corporate checking account to issue payments from corporate accounts to herself. Also, Mueller allegedly concealed her actions from the company owners and made misrepresentations concerning the company’s financial state.
In addition, from March of 2010 through June of 2012, Mueller allegedly defrauded Medica, a health care benefit program. She purportedly submitted claims to various insurers, seeking reimbursement for services provided by Edelweiss nursing staff. In some instances, Mueller double-billed by submitting claims for the same services to multiple insurance providers. For example, Mueller allegedly billed both Minnesota Medicaid and Medica for services provided to one client. The double-billing resulted in a double-payment to Edelweiss with Medicaid being the proper payer and Medica being the overpayer. As a result of this criminal behavior, Mueller obtained for Edelweiss more than $631,000 in fraudulent proceeds. Medica is a non-profit corporation that provides health insurance products to families and individuals.
If convicted in this case, Mueller faces a potential maximum penalty of 30 years in federal prison on the wire fraud count and ten years on the health care fraud count. All sentences will be determined by a federal district court judge.
This case is the result of an investigation by the Federal Bureau of Investigation and the United States Department of Health and Human Services-Office of Inspector General (“DHHS-OIG”). It is being prosecuted by Assistant U.S. Attorney David M. Genrich.
The U.S. Attorney’s Office participates in a task force with the Medicaid Fraud Control Unit at the Minnesota Attorney General’s Office that focuses on home health care fraud trends. The task force includes the DHHS-OIG, the FBI, the Internal Revenue Service, and other federal, state, and local law enforcement partners.
As a result of federal convictions for health care fraud, defendants are excluded from participating in federal health benefit programs, including Medicare and Medicaid. Exclusion determinations are made by the U.S. Department of Health and Human Services. Nationwide, more than 3,000 individuals were excluded from program participation in Fiscal Year 2010 based upon criminal convictions or patient abuse or neglect, license revocations, or other factors.
For more information, visit http://www.stopmedicarefraud.gov/
A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.Altus Man to Serve Two Years in Prison for Illegal Possession of Claymore MineRead the Press Release
Oklahoma City, Oklahoma – DALE HOWARD BRUNO, 59, from Altus, Oklahoma, was sentenced by United States District Judge David L. Russell to serve 24 months in federal for illegal possession of a functional Claymore mine, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to Court records and proceedings, Bruno was an Army instructor at Fort Sill, Oklahoma, and stole a Claymore mine while working at Fort Sill. Following a tip that Bruno had a Claymore mine, law enforcement discovered Bruno to be in possession of a fully functional Claymore mine on October 28, 2011. A Claymore mine is a military weapon containing approximately1.5 pounds of C4 plastic explosive and embedded approximately 700 steel ball bearings. It is engineered as a directional antipersonnel weapon to inflict death or serious bodily injury over a large area.
Bruno pled guilty on September 24, 2012, to unlawful possession of the Claymore mine. At sentencing, Judge Russell ordered that Bruno serve 24 months in prison followed by two years of supervised release.
This case was the result of an investigation conducted by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Ed Kumiega.
Alabama Man Pleads Guilty to Stolen Identity Refund FraudRead the Press Release
Kenneth Jerome Blackmon Jr., a resident of Montgomery, Ala., pleaded guilty today to aggravated identity theft and access device fraud, the Justice Department and the Internal Revenue Service (IRS) announced today.
According to court documents, Blackmon was involved in a scheme to use stolen identities to file false federal income tax returns with the IRS. Blackmon admitted to acquiring identity information, to using that information on false tax returns, and to directing fraudulent tax refunds onto debit cards. He admitted to possessing at least fifteen Social Security numbers for the purpose of obtaining fraudulent tax refunds from the IRS.
Blackmon faces a maximum potential sentence of 10 years in prison for the access device fraud count and a mandatory two-year sentence for the aggravated identity theft count. He is also subject to fines and mandatory restitution.
This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Justin Gelfand and Jason Poole of the Justice Department’s Tax Division are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax .
Additional Charges in Drug InvestigationRead the Press Release
United States Attorney Brendan V. Johnson announced that three additional people have been charged in an indictment involving controlled substance analogues. A federal grand jury handed down the indictment on January 8, 2013.
Lamonte Christopher Johnson, Jr., aka "Chris," age 43, and Renee Sue Johnson, age 40, both of Canton, were each charged with one count of Conspiracy to Distribute a Controlled Substance Analogue and one count of Money Laundering. Edward Lewis Vandeuren, aka “Edward Lewis Vandeuren, III,” age 62, of Sioux Falls, is charged with one count of Conspiracy to Distribute a Controlled Substance Analogue.
All three of the defendants appeared before US Magistrate Judge John E. Simko on January 9, 2013, and pled not guilty to the indictment. The maximum penalty upon conviction of the drug charge is 20 years in prison and a $1,000,000 fine. The maximum penalty on the money laundering charge is 10 years in prison and a $250,000 fine. The charges are merely accusations, and Lamonte Christopher Johnson, Jr., Renee Johnson, and Vandeuren are all presumed innocent until and unless proven guilty.
The indictment relates to an ongoing investigation involving the Roll With It stores in Sioux Falls.
Previously indicted individuals in this investigation, Corey Brandon Morrison, Gwen Arlene Pike, and Andrea Jean Anderson, all from Sioux Falls, and Thomas Patrick Harms and Cynthia Renee Harms, both of Luverne, Minnesota, made their initial court appearance on October 12, 2012. They all pled not guilty and are awaiting trial.
The investigation is being conducted by the United States Drug Enforcement Administration, the Internal Revenue Service, and the Sioux Falls Area Drug Task Force. United States Attorney Brendan Johnson and Assistant US Attorney John E. Haak are prosecuting the case. All defendants were released on conditions pending trial. A trial date has not yet been set.
Additional Charges in Drug InvestigationRead the Press Release
United States Attorney Brendan V. Johnson announced that three additional people have been charged in an indictment involving controlled substance analogues. A federal grand jury handed down the indictment on January 8, 2013.
Lamonte Christopher Johnson, Jr., aka "Chris," age 43, and Renee Sue Johnson, age 40, both of Canton, were each charged with one count of Conspiracy to Distribute a Controlled Substance Analogue and one count of Money Laundering. Edward Lewis Vandeuren, aka “Edward Lewis Vandeuren, III,” age 62, of Sioux Falls, is charged with one count of Conspiracy to Distribute a Controlled Substance Analogue.
All three of the defendants appeared before US Magistrate Judge John E. Simko on January 9, 2013, and pled not guilty to the indictment. The maximum penalty upon conviction of the drug charge is 20 years in prison and a $1,000,000 fine. The maximum penalty on the money laundering charge is 10 years in prison and a $250,000 fine. The charges are merely accusations, and Lamonte Christopher Johnson, Jr., Renee Johnson, and Vandeuren are all presumed innocent until and unless proven guilty.
The indictment relates to an ongoing investigation involving the Roll With It stores in Sioux Falls.
Previously indicted individuals in this investigation, Corey Brandon Morrison, Gwen Arlene Pike, and Andrea Jean Anderson, all from Sioux Falls, and Thomas Patrick Harms and Cynthia Renee Harms, both of Luverne, Minnesota, made their initial court appearance on October 12, 2012. They all pled not guilty and are awaiting trial.
The investigation is being conducted by the United States Drug Enforcement Administration, the Internal Revenue Service, and the Sioux Falls Area Drug Task Force. United States Attorney Brendan Johnson and Assistant US Attorney John E. Haak are prosecuting the case. All defendants were released on conditions pending trial. A trial date has not yet been set.
"Bank Bag Bandit" Pleads Guilty to Multiple Bank RobberiesRead the Press Release
Tampa, FL - David Dwinell (52, Palm Harbor) today pleaded guilty to bank robbery and using a firearm in furtherance of a crime of violence. Dwinell faces a maximum penalty of life in federal prison.
According to the plea agreement, Dwinell committed five armed bank robberies in Pasco, Hillsborough and Hernando counties. While committing the crimes, Dwinell would enter the banks wearing a dark colored hat, sunglasses, mask over his face, and a dark colored jacket. He carried a blue zippered bank bag and a silver revolver. During the robberies, Dwinell brandished the firearm as he approached the teller counters and demanded money. Several of the victims observed Dwinell fleeing the robberies in a gray Ford F150 pick-up truck.
During a search of Dwinell's residence, agents located a loaded silver .38 revolver, a black baseball hat, latex gloves, a beige mask (panty hose), black zip-up jacket, a blue bank bag (which contained the latex gloves and panty hose), and a second blue zippered bank bag. Dwinell told law enforcement that these were the items he used in the bank robberies. Agents also located 100 single one dollar bills, 50 ten dollar bills, and money still wrapped in bank bands. An additional $6,762.00 was located in Dwinell's home office. During a search of the Ford F-150 pick-up truck used by Dwinell in the bank robberies, officers located 62 five dollar bills under the steering column and one black glove. Dwinell admitted that he committed the five armed robberies and stated that he robbed the banks because his house was in foreclosure and he had previously owed money to the Internal Revenue Service.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Stacie B. Harris and Colleen Murphy Davis.
Wednesday 9 January 2013
Virginia Charter Fishing Boat Captain Pleads Guilty to Felony Lacey Act ViolationRead the Press Release
WASHINGTON – Jeffery S. Adams, 41, of Hudgins, Va., and his corporation Adams Fishing Adventures Inc. pleaded guilty today to trafficking in illegally-harvested striped bass, in violation of the Lacey Act. Among other things, the Lacey Act makes it unlawful for any person to import, export, transport, sell, receive, acquire or purchase any fish and wildlife taken, possessed, transported or sold in violation of any law or regulation of the United States, or to attempt to do so. Under the Lacey Act, it is a “sale” of fish or wildlife for any person, for money or other consideration, to offer or provide guiding, outfitting, or other services.
Ignacia S. Moreno, Assistant Attorney General for the U.S. Department of Justice’s Environment and Natural Resources Division, and Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia, made the announcement after the plea was accepted by U.S. District Judge Mark S. Davis.
Adams and Adams Fishing Adventures were indicted on Nov. 8, 2012, by a federal grand jury on charges of conspiracy, Lacey Act violations and false statements. Adams faces a maximum penalty of five years in prison and a $250,000 fine, as well as forfeiture of the fishing vessel used during the commission of the crimes. Adams Fishing Adventures Inc. faces a maximum fine of $500,000, as well as forfeiture of the fishing vessels used during the commission of the crimes. Sentencing is set for April 18, 2013.
In a statement of facts filed with his plea agreement, Adams and Adams Fishing Adventures admitted that they sold a charter striped bass fishing trip on Jan. 19, 2010, for $800. As part of that charter fishing trip, Adams knowingly took his charter clients into the exclusive economic zone (EEZ) to harvest striped bass, even though Adams knew that it was a violation of federal law to harvest striped bass inside the EEZ. Adams’ clients illegally harvested 10 striped bass within the EEZ on Jan. 19, 2010, and Adams then transported the illegally harvested striped bass back to Rudee Inlet in Virginia Beach, Va., where the sale of Adams’ charter fishing services was finalized.
This case was investigated by the National Oceanic and Atmospheric Administration, Fisheries, Office for Law Enforcement, and the Virginia Marine Police with assistance from the Federal Communications Commission Enforcement Bureau, Norfolk, Va. Office. Trial Attorney James B. Nelson of the Department of Justice’s Environmental Crimes Section of the Environment and Natural Resources Division and Assistant U.S. Attorney Stephen W. Haynie from the Eastern District of Virginia are prosecuting the case on behalf of the United States.
Virginia Charter Fishing Boat Captain Pleads Guilty to Felony Lacey Act ViolationRead the Press Release
NORFOLK, Va. – Jeffery S. Adams, 41, of Hudgins, Va., and his corporation Adams Fishing Adventures Inc. pleaded guilty today to trafficking in illegally-harvested striped bass, in violation of the Lacey Act. Among other things, the Lacey Act makes it unlawful for any person to import, export, transport, sell, receive, acquire or purchase any fish and wildlife taken, possessed, transported or sold in violation of any law or regulation of the United States, or to attempt to do so. Under the Lacey Act, it is a “sale” of fish or wildlife for any person, for money or other consideration, to offer or provide guiding, outfitting, or other services.
Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia, and Ignacia S. Moreno, Assistant Attorney General for the U.S. Department of Justice’s Environment and Natural Resources Division, made the announcement after the plea was accepted by U.S. District Judge Mark S. Davis.
Adams and Adams Fishing Adventures were indicted on Nov. 8, 2012, by a federal grand jury on charges of conspiracy, Lacey Act violations and false statements. Adams faces a maximum penalty of five years in prison and a $250,000 fine, as well as forfeiture of the fishing vessel used during the commission of the crimes. Adams Fishing Adventures Inc. faces a maximum fine of $500,000, as well as forfeiture of the fishing vessels used during the commission of the crimes. Sentencing is set for April 18, 2013.
In a statement of facts filed with his plea agreement, Adams and Adams Fishing Adventures admitted that they sold a charter striped bass fishing trip on Jan. 19, 2010, for $800. As part of that charter fishing trip, Adams knowingly took his charter clients into the exclusive economic zone (EEZ) to harvest striped bass, even though Adams knew that it was a violation of federal law to harvest striped bass inside the EEZ. Adams’ clients illegally harvested 10 striped bass within the EEZ on Jan. 19, 2010, and Adams then transported the illegally harvested striped bass back to Rudee Inlet in Virginia Beach, Va., where the sale of Adams’ charter fishing services was finalized.
This case was investigated by the National Oceanic and Atmospheric Administration, Fisheries, Office for Law Enforcement, and the Virginia Marine Police with assistance from the Federal Communications Commission Enforcement Bureau, Norfolk, Va. Office. Trial Attorney James B. Nelson of the Department of Justice’s Environmental Crimes Section of the Environment and Natural Resources Division and Assistant U.S. Attorney Stephen W. Haynie from the Eastern District of Virginia are prosecuting the case on behalf of the United States.Verla Ann Still Smoking Pleads Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on January 7, 2013, before U.S. District Judge Sam E. Haddon, VERLA ANN STILL SMOKING, a 41-year-old resident of Browning, appeared for sentencing. STILL SMOKING was sentenced to a term of:
- Prison: 30 months
- Special Assessment: $200.00
- Supervised Release: 2 years
STILL SMOKING was sentenced in connection with her guilty plea to involuntary manslaughter and making false statements.
In an Offer of Proof filed by Assistant U.S. Attorney Joseph E. Thaggard, the government stated it would have proved at trial the following:
An individual identified here as C.G. would have testified that she lived at STILL SMOKING's residence in Browning for a period including March 18-19, 2011. She would have testified that the victim, identified here as R.W., was at STILL SMOKING's residence on March 18-19, 2011. At about 8:30 p.m. on March 19, 2011, the victim became unresponsive while sleeping on a couch at STILL SMOKING's residence and was taken by ambulance to the hospital in Browning where the victim was ultimately pronounced dead at the hospital.
A forensic pathologist and deputy medical examiner performed an autopsy on the victim's' body and stated that the victim died as the result of "mixed toxicity" stemming from her ingestion of drugs. Oxycodone was found in a lethal level in the victim's blood. Gabapentin was found at a high, though not lethal, level in the victim's blood. Dextromethorphan, an over-the-counter cough suppressant, was also found in the victim's blood. The pathologist would have testified that the Gabapentin and Dextromethorphan could have contributed to the lethality of the Oxycodone, but that the Oxycodone was a necessary component in the cause of the victim's death.
On March 19, 2011, STILL SMOKING was interviewed about the circumstances of the victim's death. STILL SMOKING stated that the victim used drugs, including methamphetamine, cocaine, marijuana, and pain pills. STILL SMOKING also stated that the victim had overdosed on cocaine six to eight weeks earlier and was hospitalized.
STILL SMOKING also stated that she had planned to have her prescriptions filled on March 18, 2011, but was unable to do so and that she planned to have her prescriptions filled on March 20, 2011. STILL SMOKING advised that she had her son store her drugs in a safe in his room.
Law enforcement later determined that STILL SMOKING's claim during the March 19, 2011 interview that she had not filled her prescriptions on March 18, 2011, was false. The Kalispell pharmacy confirmed that STILL SMOKING's prescriptions for 210 Oxycodone and 60 Clomazepam were, in fact, filled on March 18, 2011.
In addition, the pharmacy confirmed that on March 16, 2011, STILL SMOKING picked up 120 Gabapentin, a prescription, non-controlled substance.
On March 29, 2011, STILL SMOKING was interviewed again and at this time stated that she had given her drugs to the victim for safekeeping.
Another witness, H.S., would have testified that she was present at STILL SMOKING's home on March 19, 2011. The witness stated that she observed STILL SMOKING give Oxycodone and Gabapentin to the victim for consumption.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that STILL SMOKING will likely serve all of the time imposed by the court. In the federal system, STILL SMOKING does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Tyrone, Pa., Man Admits Possessing Pornographic Images and Videos of ChildrenRead the Press Release
JOHNSTOWN, Pa. - A resident of Tyrone, Pa., pleaded guilty in federal court to a charge of possession of child pornography, United States Attorney David J. Hickton announced today.
Michael L. Miller, 45, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on Nov. 1, 2006, Miller knowingly possessed videos and images as computer graphic files containing images of child pornography, which had been shipped and transported in interstate or foreign commerce by means of a computer.
Judge Gibson scheduled sentencing for June 6, 2013, at 9:30 a.m. The law provides for a maximum of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
Pennsylvania State Police Troop G-Computer Crime Unit, Hollidaysburg, Pa. conducted the investigation that led to the prosecution of Miller.
This case is being brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse, led by the United States Attorney's Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as identify and rescue victims.
Triggerman Receives Life Sentence for Contract MurderRead the Press Release
Tampa, Florida - U.S. District Judge Steven D. Merryday today sentenced Luis Angel Lopez (25, Hillsborough County) to life in federal prison for the June 7, 2007, contract murder of Thomas Lee Sehorne of Lithia, Florida. As part of his sentence, the court also entered a money judgment in the amount of $1,043,517.99. This amount represents the life insurance policies paid after the death of Mr. Sehorne. Lopez was convicted by a federal jury on August 3, 2012.
According to court documents, Thomas Lee Sehorne was found shot to death outside his home in Eastern Hillsborough County, on the morning of June 7, 2007. Later that day his widow, Cristie Fay Sehorne, and their two minor children moved in with Jerry Bottorff. A short time later, Cristie Sehorne began attempting to collect on Mr. Sehorne’s life insurance policies. A settlement was ultimately reached regarding the insurance proceeds, and Cristie Sehorne and Jerry Bottorff were married in December 2008.
On May 23, 2011, the Bottorffs and Lopez were arrested. They were each charged in a three-count indictment with the use of interstate commerce facilities in the commission of a murder-for-hire, conspiracy, and aiding and abetting the carrying of a firearm in relation to a crime of violence resulting in death.
On July 9, 2012, Cristie and Jerry Bottorff pleaded guilty to the charges, and later testified at the trial of Luis Angel Lopez, the hitman. The Bottorffs testified that they solicited a friend, Mike Garcia, to find someone to murder Mr. Sehorne, with a promise to pay $60,000.00, once they obtained Mr. Sehorne’s life insurance proceeds. On October 22, 2012, Cristie Fay Bottorff and Jerry Alan Bottorff were each sentenced to life in federal prison.
Michael Garcia was arrested in 2008 and immediately cooperated regarding the murder. During Lopez’s trial, Garcia testified that, in the early morning hours of June 7, 2007, he and Lopez traveled to Mr. Sehorne’s residence on Lithia Pinecrest Road, where Lopez waited for Mr. Sehorne to return home. When Mr. Sehorne exited his automobile, Lopez approached him and killed him with a gunshot to the chest and head. Cristie Sehorne (Bottorff) contacted the Hillsborough County Sheriff’s Office the following morning to report the murder.
Garcia previously pleaded guilty for his role in this case. His sentencing hearing is scheduled for January 11, 2013.
This case was investigated by the Hillsborough County Sheriff’s Office and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney's Walter E. Furr and Thomas Palermo.
Treasure Valley Building Contractor Sentenced for Wire FraudRead the Press Release
Owner of Quality Tile and Roofing, Inc. Agrees to Forfeit $150,000; also Fined $20,000
BOISE – Patrick J. Large, 62, of Meridian, Idaho, the owner of Quality Tile and Roofing, Inc., was sentenced yesterday in federal court to two years’ probation and ordered to pay a $20,000 fine, U.S. Attorney Wendy J. Olson announced. Large pleaded guilty on September 18, 2012, to a superseding information charging him with one count of wire fraud. Chief U.S. District Judge B. Lynn Winmill ordered Large to serve eight months of his probation sentence on home detention, perform 80 hours of community service, and forfeit $150,000.
According to court documents, Large orchestrated a scheme to defraud federal agencies by falsely representing that the company had two employees residing in a HUB Zone. The HUBZone Program encourages economic development in historically underutilized business zones through the establishment of preferences in federal contracting opportunities. Based upon this false representation, the government awarded a contract to a company controlled by Large that it was not otherwise entitled to receive.
According to the plea agreement, on July 27, 2005, Large submitted an application to the U.S. Small Business Administration (SBA) that represented that the principal place of business of McDonald Roofing and Construction, Inc. (MRC) was located in Emmett, Idaho, and that it had two employees at this location. Large made these representations in submissions to the government. By doing so, MRC was able to obtain a contract awarded by the government for qualified HUBZone entities. Large admitted that the representations were false because the business did not have at least two employees residing in the HUBZone. In June 2007, the United States Department of Interior (DO I) awarded a $218,241 contract to MRC for seismic mitigation work to be performed at the National Interagency Fire Center (NIFC) in Boise. DOl awarded MRC the contract on the basis that it was a HUBZone qualified entity. On December 21, 2007, MRC received a payment from the government of approximately $219,287.
In related cases, Construction Service Corporation, Inc. (CSC) and McDonald Roofing and Construction, Inc., of Boise, were sentenced last year to three years’ probation. CSC was fined $65,000 for wire fraud and making a false statement. McDonald Roofing and Construction was fined $5,000 for fraud related to government contracting.
“The successful investigation and prosecution of Mr. Large, CSC, and McDonald Roofing and Construction, Inc., are excellent examples of the cooperative working relationship between the U.S. Attorney’s Office and its federal agency partners,” said Olson. “We will continue to work together to ensure those who fraudulently obtain government contracts will not go unpunished.”
“The consequence to those who misrepresent themselves to claim eligibility for preference in federal contracting opportunities is evident by today’s announcement,” said SBA Inspector General Peggy E. Gustafson. “Mr. Large's fraud involved a SBA government contracting program that encourages economic development in historically underutilized business zones, and I am pleased that he has accepted responsibility for his actions. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their commitment to seek justice on behalf of the American taxpayer.”
“Rest assured those who find ways to fraudulently benefit from government programs will be brought to justice,” said Lilia E. Ruiz, IRS Criminal Investigation Acting Special Agent in Charge for the State of Idaho. “IRS Criminal Investigation will work diligently with our law enforcement partners to combat such fraud.”
The case was a joint investigation by the Office of Inspector General for the Department of Veterans Affairs, the U.S. Small Business Administration, General Services Administration, Department of Interior, Department of Agriculture, as well as the Defense Criminal Investigative Service, the U.S. Army Criminal Investigative Command, the Air Force Office of Special Investigation, and Internal Revenue Service-Criminal Investigation.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Tilicia Alexis Elliott Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on January 9, 2013, before Senior U.S. District Judge Jack D. Shanstrom, TILICIA ALEXIS ELLIOTT, a 24-year-old resident of Billings, was sentenced to a term of:
- Prison: 120 months
- Special Assessment: $200.00
- Supervised Release: 5 years
ELLIOTT was sentenced in connection with her guilty plea to conspiracy to possess methamphetamine with intent to distribute and possession with intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Marcia Hurd, the government stated it would have proved at trial the following:
TILICIA ALEXIS ELLIOTT came to the attention of law enforcement in Billings when she was arrested on a warrant on September 11, 2010, and methamphetamine was found in her purse when she was searched at the jail. ELLIOTT admitted that she had purchased an ounce of methamphetamine that morning for $1700 from a known drug dealer in Billings and that she had already distributed some of the drugs to others. ELLIOTT admitted in approximately March 2010, she began purchasing methamphetamine from multiple sources for redistribution to others. She purchased approximately 4-10 ounces per week, including at least 4 pounds from the dealer mentioned above. She purchased methamphetamine from others, some of whom were already indicted and others that are yet to be indicted.
During debriefs, other users admitted purchasing methamphetamine from ELLIOTT in the past.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that ELLIOTT will likely serve all of the time imposed by the court. In the federal system, ELLIOTT does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation's Big Sky Safe Streets Task Force, which includes the Billings Police Department and the Yellowstone County Sheriff's Office.
Three Area Men Sentenced in Federal Court for Large-Scale Heroin TraffickingRead the Press Release
PITTSBURGH, Pa. - Three residents of Pittsburgh, Pa., have been sentenced in federal court on their convictions of violating federal narcotics trafficking and firearms laws, United States Attorney David J. Hickton announced today.
Senior United States District Judge Donetta W. Ambrose sentenced Gary Moorefield, 45, to 300 months (25 years) imprisonment followed by five years supervised release on his conviction of violating federal narcotics and firearms laws;
Dequillarae Zellous, 39, to 120 months (10 years) imprisonment followed by eight years supervised release on his conviction of violating federal narcotics trafficking laws; and
David Michael Jones, 31, to 120 months (10 years) imprisonment followed by eight years supervised release on his conviction of violating federal narcotics trafficking laws.
Moorefield, Zellous and Jones pleaded guilty on Sept. 7, 2012, several days into their anticipated lengthy trial. The investigation resulted in the prosecution of 10 individuals charged with conspiring to distribute large quantities of heroin. According to information presented to the court, the investigation culminated in wiretaps on two cell phones utilized by Gary Moorefield. The wiretaps, conducted from the end of July 2010 through mid-September 2010, confirmed that Moorefield obtained kilogram quantities of heroin from a supplier in the New York/New Jersey area approximately one to two times per week through with the assistance of a courier. Moorefield would supply his courier with large sums of U.S. currency (often in excess of $100,000 per trip), and the courier would travel to Newark, New Jersey and/or New York City to obtain the heroin from the supplier.
The courier would then drive back to the Pittsburgh area and deliver the large quantities of heroin directly to Moorefield at either Moorefield’s residence in Penn Hills, Pa., or at his penthouse apartment located in Monroeville, Pa.
After receiving the heroin from his courier, Moorefield would contact his primary drug distributors, including Dequillarae Zellous and David Michael Jones, and arrange to meet the distributors to supply them with large quantities of heroin.
On Aug. 11, 2010, federal agents (working in conjunction with the Pennsylvania State Police) seized $103,000 in U.S. currency from Moorefield’s courier who was en route to meet with the heroin source in the New York/New Jersey area.
On Sept. 17, 2010, federal agents in New Jersey seized a bag containing $89,000 in U.S. currency that Moorefield personally delivered to the heroin source in New York City shortly before the seizure.
On Sept. 23, 2010, federal agents executed a search warrant at Moorefield’s residence. Inside the residence agents discovered approximately $72,000 in U.S. currency, a bulletproof vest, and four loaded firearms.
Additionally, trial testimony revealed that on Aug. 29, 2009, officers with the Wilkinsburg Police Department responded to a reported burglary in progress in Wilkinsburg, Pa. Once inside, officers observed an assault rifle and various other items of contraband in the ransacked home, including numerous glassine packets (a/k/a “stamp bags”) commonly used to package heroin for distribution. A subsequent search of the residence resulted in the seizure more than 616 grams of heroin, a pistol, a sawed-off shotgun, two assault rifles, approximately 25,000 empty stamp bags, and other heroin packaging material (e.g., digital scales used to weigh illegal drugs, as well as rubber ink stamps and ink pads used to stamp the stamp bags with a name or logo identifying a particular batch of heroin). Testimony revealed that the residence was used as a "stash house" by Moorefield, and that between $500,000 to $1,000,000 was stolen from the residence during the burglary.
Assistant United States Attorneys Charles A. Eberle and Troy Rivetti prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) for the investigation leading to the successful prosecution of Moorefield, Zellous and Jones. The task force was headed by the Drug Enforcement Administration (DEA) and was comprised of members drawn from the Baldwin Borough Police, the Allegheny County Sheriff's Office, the Munhall Police, the Pittsburgh Bureau of Police, the Pennsylvania State Police, the Duquesne Police, the West Homestead Police, the Allegheny County Police, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistance in the investigation was provided by the Penn Hills Police, the Monroeville Police, the McKees Rocks Police, and the Wilkinsburg Police Department.
Tammy Copas Sentenced to 121 Months in Prison for Armed RobberiesRead the Press Release
GREENEVILLE, Tenn. - Tammy Copas, 40, of Johnson City, Tenn., was sentenced to serve a total of 121 months in prison by the Honorable J. Ronnie Greer, U.S. District Judge. Upon release from prison she will be subject to three years supervised release under the supervision of the U.S. Probation Office.
Copas pleaded guilty on May 14, 2012, to robberies by force of the Discount Tobacco Outlet store in Elizabethton and the La Perla restaurant in Johnson City, both of which occurred in January 2012. Copas also pleaded guilty to brandishing a firearm in the commission of the La Perla robbery. She was sentenced to 37 months for each of the robberies, with the terms to run concurrently and 84 months for brandishing the firearm, to run consecutively to the robbery sentences. Federal law mandates a seven year minimum mandatory sentence for brandishing a firearm in the commission of a violent offense.
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Lopez included the Johnson City Police Department, Elizabethton Police Department and Federal Bureau of Investigation. Assistant U.S. Attorney J. Gregory Bowman represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
Smith County Residents Guilty of Methamphetamine ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – Two Smith County, Texas residents have pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Clinton Daniel McCaa, 32, of Whitehouse, Texas, pleaded guilty to conspiracy to distribute and possess with intent to distribute methamphetamine today before U.S. Magistrate Judge Judith K. Guthrie.
Tara McDonald, 40, of Tyler, Texas, pleaded guilty to maintaining a place for the distribution and use of methamphetamine today before Judge Guthrie.
According to information presented in court, during 2011, McCaa acquired methamphetamine from Clinton Squires of Terrell, Texas, which McCaa then distributed to multiple persons in Tyler, Texas. During this time, McCaa lived with McDonald at her residence on Meadow Creek Drive in Tyler, Texas. McDonald admitted that she knew McCaa was involved in the distribution and use of methamphetamine. Furthermore, McDonald allowed McCaa to store methamphetamine and other substances at her residence.
A federal indictment was returned on May 2, 2012, charging McDonald and McCaa with federal drug crimes.
McCaa faces up to 40 years in federal prison. McDonald faces up to 20 years in federal prison. Sentencing dates have not been set.
This case is being investigated by the Texas Department of Public Safety and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.
###Smith County Man Sentenced for Wire FraudRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 42-year-old Tyler, Texas man has been sentenced to federal prison for federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
James Henry Hardee pleaded guilty on Oct. 11, 2012, to wire fraud and was sentenced to 30 months in federal prison today by U.S. District Judge Leonard E. Davis.
According to information presented in court, from 2005 to 2008, Hardee, who was serving as the managing member of an investment group based in Tyler, embezzled investor funds and used the money for personal purposes such as mortgage payments, vehicles, and credit card payments. The investment group was comprised of multiple investors from Georgia and was formed to open and operate multiple fast-food restaurants in Arkansas. Hardee concealed his misappropriation of funds by falsifying financial statements, including those sent to investors by electronic mail on a monthly basis.
A restitution hearing will be held at a later date.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney L. Frank Coan, Jr.
Smith County Man Guilty of Attempted ArsonRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 54-year-old Tyler, Texas, building contractor has pleaded guilty to federal charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Daniel Kubisty pleaded guilty to attempted arson today before U.S. Magistrate Judge Judith Guthrie.
According to information presented in court, on Mar. 19, 2012, Kubisty accepted $3,000 from Edward Jacobs to burn down a building located at 3322 E. Fifth Street in Tyler that was being used by the “Add-Life Recovery Center” methadone clinic. Kubisty and Jacobs conspired to burn down the building in order to gain a competitive advantage for the “Methadone Clinic of East Texas” which was owned by Jacobs and also had an office in Tyler, Texas. On Mar. 19, 2012 Kubisty was arrested in Tyler by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and was found to have a gasoline can, with a wick saturated in gasoline protruding from its neck, in the back of his pickup.
Kubisty faces from five to 20 years in federal prison. A sentencing date has not been set.
After Kubisty’s arrest, Jacobs feared Kubisty would testify against him and on June 1, 2012, he arranged a meeting with a man he believed he could hire to murder Kubisty in order to prevent Kubisty’s testimony. During the meeting, Jacobs offered to pay the hit-man $12,000.00 for Kubisty’s murder. ATF was monitoring the meeting and arrested Jacobs at the scene. On Dec. 18, 2012 Jacobs pleaded guilty to attempted arson and solicitation of murder for hire. He faces up to 20 years in federal prison for each charge. A sentencing date has not been set.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Jim Noble.
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