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15 February 2013
Former Camp Lejeune Employee Sentenced for Child Pornography ChargeRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that in federal court Wednesday, February 13, 2013, Senior United States District Judge Malcolm J. Howard sentenced SHANE MICHAEL GREEN, 39, to 108 months imprisonment followed by a 20 years of supervised release.
A Federal Grand Jury returned a Criminal Indictment on June 24, 2012. On October 15, 2012, GREEN pled guilty to downloading child pornography, in violation of Title 18, United States Code, Section 2252(a)(2). According to the Indictment on October 24, 2009, GREEN received a video of a minor engaged in sexually explicit conduct. According to the investigation, in May, 2011, law enforcement detected an IP address that was sharing images of child pornography. The IP address was tracked to a private network on Camp Lejeune, North Carolina. The Naval Criminal Investigative Service investigated and found that GREEN had been downloading child pornography using a peer to peer file sharing program while on Camp Lejeune employed as a civilian firefighter.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Investigation of this case was conducted by the North Carolina State Bureau of Investigation and the Naval Criminal Investigative Service with informational assistance provided by the National Center for Missing and Exploited Children. Special Assistant United States Attorney Mark Griffith prosecuted the case.
Florida-Based Lender Processing Services Inc. to Pay $35 Million<br /> in Agreement to Resolve Criminal Fraud Violations<br /> Following Guilty Plea from Subsidiary CEORead the Press Release
Lender Processing Services Inc. (LPS), a publicly traded mortgage servicing company based in Jacksonville, Fla., has agreed to pay $35 million in criminal penalties and forfeiture to address its participation in a six-year scheme to prepare and file more than 1 million fraudulently signed and notarized mortgage-related documents with property recorders’ offices throughout the United States. The settlement, which follows a felony guilty plea from the chief executive officer of wholly owned LPS subsidiary DocX LLC, was announced today by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney for the Middle District of Florida Robert E. O’Neill.
The non-prosecution agreement, which LPS entered into today with the U.S. Department of Justice and the U.S. Attorney’s Office for the Middle District of Florida, requires the company to make the payment and meet a series of other conditions.
Lorraine Brown, the former CEO of DocX LLC, pleaded guilty on Nov. 20, 2012, in federal court in Jacksonville to conspiracy to commit mail and wire fraud. During her guilty plea, Brown admitted to her leadership role in the scheme.
LPS has taken a number of remedial actions to address the misconduct at DocX. Among other things, LPS has wound down all of DocX’s operations, re-executed and re-filed mortgage assignments as appropriate and terminated Brown and others. LPS has also demonstrated changes in its compliance, training and overall approach to ensuring its adherence to the law, and has retained an independent consultant to review and report on LPS’s document execution practices; assess related operational, compliance, legal and reputational risks; and establish a plan for reimbursing any financial injuries to mortgage servicers or borrowers.
According to the statement of facts accompanying the agreement, before its wind-down, DocX was in the business of assisting residential mortgage servicers with creating and executing mortgage-related documents to be filed with property recorders’ offices throughout the United States. Employees of DocX, at the direction of Brown and others, falsified signatures on the documents. Through this scheme and unbeknownst to the clients, Brown and subordinates at DocX directed authorized signers to allow other, unauthorized personnel to sign and to have documents notarized as if they were executed by authorized signers. These signing practices were used at DocX from at least March 2003 until late 2009, and were implemented to increase profits.
Also to increase profits, Brown hired temporary workers to sign as authorized signers. These temporary employees would sign mortgage-related documents at a much lower cost and without the quality controls represented to clients. These documents were then falsely notarized by employees at DocX, allowing the fraud scheme to remain undetected.
After these documents were falsely signed and fraudulently notarized, Brown authorized DocX employees to file and record them with local county property records offices across the country. Many of these documents – particularly mortgage assignments, lost note affidavits and lost assignment affidavits – were later relied upon in court proceedings, including property foreclosures and federal bankruptcy actions.
In entering into the non-prosecution agreement with LPS, the Justice Department took several factors into consideration. Soon after discovering the misconduct at DocX, LPS conducted a thorough internal investigation, reported all of its findings to the government, cooperated with the government’s investigation and effectively remediated any problems it discovered. The government’s investigation also revealed that Brown and others at DocX took various steps to actively conceal the misconduct from detection, including from LPS senior management and auditors.
Brown, 51, of Alpharetta, Ga., faces a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. She is scheduled to be sentenced on April 23, 2013, before U.S. District Judge Henry Lee Adams Jr. in Jacksonville.
This case is being handled by Trial Attorney Ryan Rohlfsen and Assistant Chief Glenn S. Leon of the Justice Department’s Criminal Division Fraud Section and Assistant U.S. Attorney Mark B. Devereaux of the U.S. Attorney’s Office for the Middle District of Florida. The case is being investigated by the FBI, with assistance from the state of Florida’s Department of Financial Services.
Today’s disposition is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF). The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
Related Materials:
LPS Non-Prosecution Agreement
LPS Statement of FactsFlorida Woman Sentenced to Prison for Obstruction of Justice in Relation to Her Husband’s DisappearanceRead the Press Release
A Gainesville, Fla., woman was sentenced today to serve one year and one day in prison for her role in the obstruction of a multinational investigation into the disappearance of her husband, then an employee in the U.S. Consulate in Curacao, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division, U.S. Attorney Pamela C. Marsh for the Northern District of Florida, Director of the U.S. State Department’s Diplomatic Security Service ( DSS) Gregory B. Starr and Special Agent in Charge of the FBI’s Miami Field Office Michael B. Steinbach.
Abby Beard Hogan, 50, was sentenced by U.S. District Judge M. Casey Rodgers in the Northern District of Florida. In addition to her prison term, Hogan was sentenced to two years of supervised release. On March 29, 2012, Hogan pleaded guilty before U.S. Magistrate Judge Gary R. Jones to one count of obstruction of justice.
According to court documents, on the night of Sept. 24, 2009, Abby Hogan’s husband, James Hogan, an employee at the U.S. Consulate in Curacao, a Caribbean island that was part of the Netherlands Antilles, left his home on foot and subsequently disappeared. In the early hours of Sept. 25, 2009, James Hogan called his wife and spoke for approximately three minutes. The next day, when James Hogan failed to report to work, the U.S. government and Dutch and Antillean law enforcement launched an island-wide search and opened an investigation into Hogan’s disappearance. On Sept. 25, 2009, a diver located James Hogan’s blood-stained clothing on a local beach.
According to evidence submitted in Abby Hogan’s sentencing hearing, she repeatedly provided false information to U.S. law enforcement about the time period before James Hogan’s disappearance and withheld relevant information. Abby Hogan initially told investigators that, before his disappearance, she and her husband had an argument. She subsequently modified that statement and claimed that there had been no argument, just a minor disagreement over her husband’s next assignment for the State Department. Abby Hogan further told U.S. law enforcement agents that James Hogan had been in a “good mood” prior to leaving for his walk on the evening of his disappearance. She repeatedly denied that there had been any marital problems or that her husband had been upset or depressed in any way. Abby Hogan further stated that she could not remember the full three-minute conversation before her husband disappeared because she was sound asleep when her husband called. She claimed she fell back asleep after the call, and did not awake until the following morning. In fact, all of these statements were false, as established by the deleted emails and other computer forensic evidence , which was submitted to the court.
According to court documents, after law enforcement interviews, between Sept. 30, 2009, and Jan. 15, 2010, Abby Hogan deleted more than 300 emails from her email account. These emails contained information that Abby Hogan knew was relevant to specific questions she had been asked by U.S. law enforcement. The emails also contained information that she had either previously misrepresented or knowingly omitted during her interviews with law enforcement, including that she was engaged in an extramarital affair; the night James Hogan disappeared, the couple had argued, and he left the house angry and upset; and that she did not want law enforcement to know what had happened that evening.
The case was prosecuted by Senior Trial Attorney Teresa Wallbaum of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Frank Williams for the Northern District of Florida. The Criminal Division’s Office of International Affairs provided assistance. The case was investigated by DSS and the FBI’s Miami Field Office and Legal Attaché Office in Bridgetown, Barbados. Assistance was also provided by Curacao law enforcement authorities.
Federal Jury Indicts Boise Man on Child Exploitation ChargesRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced today that Jason Lloyd Schaber, 40, of Boise, Idaho, is scheduled to be arraigned in federal court on February 19 on charges related to allegations of child exploitation. Specifically, the indictment returned by the federal grand jury on February 12 alleges that Schaber posted ads on Craigslist offering a three-year-old minor for sex. The indictment also includes 22 other charges related to production, distribution and possession of child pornography between 2010 and 2012.
According to court documents, investigators with the Internet Crimes Against Children (ICAC) Task force began their investigation of Schaber in April 2012, after Boise police were contacted by a person who saw a Craigslist ad offering a toddler for sex. Investigators working with Craigslist and Google traced the ad to Schaber in mid-May 2012, according to reports. Schaber was arrested on May 31, 2012; he has been in custody on state charges since then. Ada County dismissed the state charges yesterday in favor of the federal indictment.
The federal indictment alleges that Schaber used a facility in interstate commerce in aid of a racketeering enterprise that involved the sex trafficking of a child, and that he offered and attempted to induce a person under 18 years of age into prostitution. The indictment further alleges that between April 2010 and May 2012, Schaber produced sexually explicit images and videos of minors engaged in sexually explicit conduct, and that he distributed child pornography images and videos to 16 other individuals via email between September 2011 and April 2012.
A three-year old child, who is known to Schaber, was placed in the custody of the Idaho Department of Health and Welfare and is currently in foster care.
The charge of use of facility in interstate commerce in aid of racketeering enterprise sex trafficking of a child – introducing a person under 18 years into prostitution, as charged in count one of the indictment, is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years supervised release.
The charge of sexual exploitation of children–production of sexually explicit images of a minor, as charged in counts two through six, is punishable by not less than 15 years and not more than 30 years in prison; distribution of sexually explicit images of minors, as charged in counts seven through 22, is punishable by not less than five years and not more than 20 years in prison; and possession of sexually explicit images of minors, as charged in count 23, is punishable by up to ten years in prison. Each count is punishable by at least five years to lifetime supervised release and a maximum fine of $250,000.
“Protecting children from sexual abuse and sexual exploitation is a critical law enforcement function,” said Olson. “Tragically, this case involves the exploitation and victimization of a young child and the production and distribution of child pornography. Fortunately, through the cooperative efforts of federal and local law enforcement and the Ada County Prosecuting Attorney’s Office, we have been able to fully investigate this case and obtain an indictment that addresses all of the conduct identified by law enforcement.”
The case is being investigated by the Boise Police Department, the Ada County Sheriff's Office, and members of the Internet Crimes Against Children Task Force, with technical assistance provided by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the High Technology Investigative Unit of the U.S. Department of Justice, Child Exploitation and Obscenity Section.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, visit www.usdoj.gov/psc. For more information about internet safety education, visit www.usdoj.gov/psc and click on the tab “resources.” For more information about registered sex offenders in Idaho, visit www.isp.idaho.gov/sor_id/.
Federal Jury Convicts Two for Roles in Austin-based Heroin Distribution OperationRead the Press Release
Jose Pardo, age 68, of Austin and Jorge Carrillo, age 45, of Lockhart, TX, both face between ten years and life in federal prison after a jury convicted them yesterday afternoon for their roles in a heroin distribution operation announced United States Attorney Robert Pitman.
The jury convicted Pardo and Carrillo of one count of conspiracy to possess with intent to distribute and to distribute heroin. Evidence presented at trial revealed the defendants conspired from May 2011 until their arrests in June of 2012 to distribute more than 17 kilograms of heroin. Testimony also revealed that at least on one occasion, heroin was processed after business hours at the Pardo family-owned restaurant, Jovita’s, and that numerous drug transactions occurred right behind Jovita’s in co-defendant Amado Pardo’s house.
Jose Pardo and Jorge Carrillo, along with 12 co-defendants who entered guilty pleas prior to trial, are scheduled to be sentenced at 9:00 a.m. on May 3, 2013, before United States District Judge Sam Sparks in Austin. The alleged ringleader, Amado Pardo, passed away prior to trial.
This case was investigated by the Federal Bureau of Investigation, Austin Police Department, Texas Department of Public Safety, Texas Department of Criminal Justice Office of the Inspector General, Drug Enforcement Administration and the Travis County Sheriff’s Office. This matter is being prosecuted by Assistant United States Attorneys Dan Guess and Elizabeth Cottingham.
Essex County, N.J., Man Sentenced to 118 Months in Prison for Armed CarjackingRead the Press Release
NEWARK., N.J, - An Essex County man was sentenced today to 118 months in prison for his role in an armed carjacking in Elizabeth, N.J., on Jan. 25, 2011, U.S. Attorney Paul J. Fishman announced.
Jermaine May, 29, of Newark, previously pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to a Superseding Information charging him with conspiracy to commit carjacking, theft of a motor vehicle by force, violence and intimidation, and use of a firearm in furtherance of a crime of violence.
According to documents filed in this case and statements made in court:
May conspired with Alhakim Young, David Jones and Maurice Williams to carjack a vehicle. On Jan. 25, 2011, May, Young, Jones and Williams traveled to Elizabeth, N.J., in a white Jeep Cherokee to look for a vehicle to carjack. May and Young approached two victims who were standing near a 2004 Infiniti G-35 that was parked and warming up on Britton Street in Elizabeth, and at gunpoint, ordered the two victims to the ground. Williams and Jones fled in the Infiniti, while May and Young fled in the white Jeep Cherokee. Young, Jones and Williams previously pleaded guilty to conspiracy to commit carjacking, carjacking, and use of a firearm in furtherance of a crime of violence.
May was sentenced to concurrent 58-months prison terms on the conspiracy and carjacking counts and a consecutive 60-month prison term on the count of using a firearm in furtherance of a crime of violence, for a total sentence of 118 months in prison. Judge Cecchi also sentenced May to five years of supervised release. Restitution will be determined at a later date.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Acting Special Agent in Charge David Velazquez B. Ward in Newark, with the investigation leading to today’s plea.The government is represented by Assistant U.S. Attorneys Dara Aquila Govan of the General Crimes Unit and Gurbir Grewal of the Economic Crimes Unit in Newark.
13-084Defense counsel: Lisa Mack Esq., Assistant Federal Public Defender, Newark
Elyria Man Charged with Illegal ReentryRead the Press Release
A federal grand jury has returned an indictment charging Natividad Mundo, age 51, formerly of Elyria, Ohio, with illegally reentering the United States following her deportation, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that on April 17, 2012, Natividad Mundo was removed and deported from the United States following convictions for aggravated trafficking in cocaine and conspiracy to commit aggravated trafficking in cocaine. The indictment alleges Mundo subsequently illegally re-entered the United States and was found in Lorain County.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to the case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being presented by Assistant United States Attorney Gregory C. Sassé after an investigation by the United States Border Patrol.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
District Man Sentenced to Prison Term for Running an Illegal Gambling Operation-Defendant, Others Operated at Locations in Chinatown Area-Read the Press Release
WASHINGTON – Chun Liu, 55, of Washington, D.C., was sentenced today to six months in prison, to be followed by six months of home confinement, on charges involving the operation of an illegal gambling business, announced U.S. Attorney Ronald C. Machen Jr. and John P. Torres, Special Agent in Charge of the Washington Office of U.S. Immigration and Customs Enforcement’s (ICE) Office of Homeland Security Investigations (HSI).
Liu pled guilty in October 2012 in the U.S. District Court for the District of Columbia to one count of conducting an illegal gambling business and one count of money laundering. He was sentenced by the Honorable Senior Judge Thomas F. Hogan. As part of the plea agreement, Liu agreed to the forfeiture of $255,320, which represents proceeds from the gambling business. The amount includes more than $230,000 in cash that was seized by law enforcement authorities in a search of the operation in September 2011. Following his home confinement, Liu will be placed on three years of supervised release.
According to a proffer of evidence, signed by the defendant as well as the government, Liu and other individuals operated a total of three illegal gambling establishments in the Chinatown area of Northwest Washington from March 2007 through October 2011.
From approximately March 2007 until December 2007, Liu continuously operated a gambling establishment in the 800 block of Sixth Street NW. From April 2009 until December 2009, he moved the operation to another location, on the same block. In February and March of 2010, the operation moved to the 500 block of H Street NW. And finally, from July 2010 until October 2011, Liu returned to the first location on Sixth Street NW.
The gambling activity typically took place from 9 a.m. until 3 or 4 a.m. At any given time, Liu operated electronic, touch-screen gaming machines and up to five Mahjong tables inside the gambling establishments. Liu conducted numerous financial transactions involving the proceeds of his illegal gambling activity, including paying rent for his residence, making monthly payments on his Mercedes-Benz automobile, and paying utility bills.
In announcing the sentence, U.S. Attorney Machen and Special Agent in Charge Torres praised the investigative work of the Special Agents from the Washington Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. They also commended the efforts of those who worked on the case for the U.S. Attorney’s Office, including Paralegal Specialist Taryn McLaughlin, the Asset Forfeiture and Money Laundering Section, and Assistant U.S. Attorney Scott L. Sroka, who prosecuted the matter.
13-057District Man Sentenced to More Than 12 Years in Prison for Northwest Washington Home Invasion-Police Catch Defendant in Front of the Home with Stolen Property-Read the Press Release
WASHINGTON – Shawn A. Thomas, 42, of Washington, D.C., was sentenced today to more than 12 years in prison following his conviction on burglary and other charges in a home invasion in Northwest Washington, DC, U.S. Attorney Ronald C. Machen Jr. announced.
Thomas was found guilty by a jury in December 2012 in the Superior Court of the District of Columbia of first-degree burglary, first-degree theft, receiving stolen property, and destruction of property. The Honorable Heidi M. Pasichow sentenced him to 10 years in prison on the burglary charge and imposed shorter concurrent sentences on the theft and property-related offenses. Judge Pasichow also sentenced Thomas to an additional 28 months for committing these crimes while on release in an unrelated second-degree theft case.
According to the government’s evidence, on Sunday, Aug. 5, 2012, at about 7 a.m., several intruders threw a rock through a window and entered a single-family residence in the 3900 block of Reno Road NW. The victim was home alone at the time. After hearing the glass break, and hearing voices, he barricaded himself in the bathroom and called 911.
The Metropolitan Police Department (MPD) responded within minutes. When they arrived, they found Thomas seated in a car in front of the burglarized home and various items belonging to the victim and his family - including a DVD player, stereo components, cordless telephones, and jewelry - in the back seat of the vehicle. Inside Thomas’s pocket, MPD officers also found the victim’s paging device. It had been on a bedside dresser at the time of the home invasion.
The victim and his family had just moved into this home only days before the burglary, and the other family members were visiting relatives out of town at the time of the crime.
“Thanks to the victim’s quick thinking and the fast response by police, this defendant was arrested and brought to justice,” said U.S. Attorney Machen. “Home invasions are as dangerous as they are terrifying, and the community is safer with this defendant in prison.”
In announcing the sentence, U.S. Attorney Machen commended the work of the MPD officers and detectives who investigated the case. He also praised the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Catherine Bouldin, who assisted in preparing the case for trial, Assistant U.S. Attorney Jonathan Kravis who secured the indictment in the case, and Assistant U.S. Attorney Kevin Andrew Chambers, who tried the case to the jury. The Assistant U.S. Attorneys are assigned to the Second and Third District Unit of the Superior Court Felony Major Crimes Section.
13-059District Man Sentenced to 20 Months in Prison for Taking Part in Robbery in Northeast Washington-Defendant Stole Victim’s Sneakers-Read the Press Release
WASHINGTON – Junior Josephson, 18, of Washington, D.C., has been sentenced to a 20-month prison term for his role in a robbery last fall of an acquaintance in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced today.
Josephson pled guilty to robbery in December 2012 in the Superior Court of the District of Columbia. He was sentenced on Feb. 14, 2013 by the Honorable Herbert B. Dixon, Jr. Upon completion of his prison term, Josephson will be placed on three years of supervised release.
According to the government’s evidence, Josephson knew the 22-year-old victim well, having grown up in the same neighborhood. On Oct. 21, 2012, at about 2:30 p.m., Josephson was with four assailants who jumped on top of the victim in the 500 block of Emerson Street NE. The four knocked the victim to the ground, and began punching and kicking him. Josephson pulled off the victim’s Nike sneakers, while the others kept beating him and going through his pockets.
The victim was able to escape and ran to the Fort Totten Metro station, where a transit employee called for an ambulance. The victim was transported by ambulance to a hospital, where he was admitted and treated for multiple lacerations and bruises.
The police later recovered surveillance footage from a drugstore that showed Josephson was present, on Oct. 21, 2012, when another suspect used the victim’s stolen credit card to purchase merchandise. Josephson was arrested on Oct. 31, 2012. He was wearing the Nike Air Penny Sprite sneakers believed to have been taken from the victim.
In announcing the sentence, U.S. Attorney Machen praised the work of the Metropolitan Police Department, which investigated the case. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Tamaya Reid and Assistant U.S. Attorney Trevor N. McFadden, of the Fourth District Felony Prosecution Unit.
13-056Department of Justice and National Institute of Standards and Technology Announce Launch of National Commission on Forensic ScienceRead the Press Release
The U.S. Department of Justice and the U.S. Department of Commerce’s National Institute of Standards and Technology (NIST) announced today the establishment of a National Commission on Forensic Science as part of a new initiative to strengthen and enhance the practice of forensic science.
The National Commission on Forensic Science will be composed of approximately 30 members, bringing together forensic science service practitioners, academic researchers, prosecutors, defense attorneys, judges and other relevant stakeholders to develop policy recommendations for the Attorney General. The commission will consider guidance on practices for federal, state and local forensic science laboratories developed by groups of forensic science practitioners and academic researchers administered by NIST.
“Forensic science is an essential tool in the administration of justice and needs to be continually evaluated as science progresses,” said Deputy Attorney General James M. Cole. “Forensic science helps identify perpetrators, convict the guilty, exonerate the innocent, and protect public safety. This initiative is led by the principle that scientifically valid and accurate forensic analysis strengthens all aspects of our justice system.”
“The Department of Justice and the National Institute of Standards and Technology have a history of successful collaboration,” said Under Secretary of Commerce for Standards and Technology and NIST Director Patrick Gallagher. “Through this initiative, we will work even more closely with the forensic science community to strengthen the forensic science system.”
The commission will have responsibility for developing guidance concerning the intersections between forensic science and the courtroom and developing policy recommendations, including uniform codes for professional responsibility and requirements for training and certification.
The new initiative provides a framework for coordination across forensic disciplines under federal leadership, with state and local participation. The Department of Justice, through its involvement in the commission, will take an active role in developing policy recommendations and coordinating implementation. The NIST-administered guidance groups will develop and propose discipline-specific practice guidance that will become publicly available and be considered for endorsement by the commission and the Attorney General. This coordinated effort will help to standardize national guidance for forensic science practitioners. Additionally, NIST will continue to develop methods for forensic measurements and validate select existing forensic science standards.
Specific criteria for membership will be announced in an upcoming Federal Register notice, and applicants will have 30 days from the publication of the notice to submit their applications.
As a non-regulatory agency of the U.S. Department of Commerce, NIST promotes U.S. innovation and industrial competitiveness by advancing measurement science, standards and technology in ways that enhance economic security and improve our quality of life. To learn more about NIST, visit www.nist.gov .
Daphne Woman Sentenced to Federal Prison in Falsification of Bankruptcy DocumentsRead the Press Release
United States Attorney Kenyen Brown announces that Teresa Weinacker of Daphne, Alabama today was sentenced to five months in Federal prison followed by five months home confinement and three years supervised release after she pled guilty to felony falsification of a Statement of Financial Affairs she caused to be filed in the bankruptcy case of her corporation, Xena Express, Inc. doing business as Pet Friendly, Inc. Weinacker was also ordered to pay restitution of $54,961.57 and to pay a $100 special assessment.
The charges concerned a “bust out scheme” of Pet Friendly, Inc., the business Weinacker controlled. This is a type of fraud where, just before filing bankruptcy, a person who controls a corporation transfers or conceals a corporation’s property and hides that transfer from the bankruptcy court. Property that should go to pay debts is instead taken by the controlling person. Weinacker was the president and controlling shareholder of Xena Express, Inc., which filed bankruptcy in October, 2009. Shortly before the bankruptcy filing, Weinacker opened a new bank account under her own name, doing business as Pet Friendly, Inc. She then, as president of Xena Express, Inc., faxed instructions to her major customer, Wal-Mart Stores, Inc. in Arkansas to wire transfer funds due Xena Express, Inc. to the bank account she had opened in her own name Weinacker caused Wal-Mart to send almost Fifty-five thousand dollars that should have gone to the bankrupt corporation for businesses debts to instead be sent to her own account without the knowledge or approval of the Bankruptcy Court.. Weinacker answered a question on the bankruptcy Statement of Financial Affairs that asked about transfers of corporate property by stating “NONE”, when she knew she had caused the obligation due from Wal-Mart to be paid to her own account, instead of the corporate account.
The case was investigated by agents of the Mobile Office of the Federal Bureau of Investigation The case was be prosecuted by Assistant U.S. Attorney Charles Baer on behalf of the United States Attorney’s Office for the Southern District of Alabama.
Cuyahoga Falls Man Charged with Theft of Public Money and Identity TheftRead the Press Release
A federal grand jury sitting returned a two-count indictment charging Joshua Papai, age 44, of Cuyahoga Falls, Ohio, with one count of theft of public money, and one count of identity theft, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that between December 31, 2008, and April 30, 2010, Papai received approximately $61,129.40 in disability benefits from the Department of Veteran’s Affairs, to which he was not entitled. During this period, the indictment alleges that Papai worked at various times as a snow plower, roofer, home health care aid, and state-tested nursing assistant throughout that time period.
The indictment also charges that on August 4, 2008, Papai used another person’s Social Security account number to open a bank account in a fictitious name. Joshua Papai used this account to hide employment earnings to which he was not entitled because he was receiving disability.
If convicted, the defendant’s sentence will be determined by the court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum, and, in most cases, they will be less than the maximum.
This case is being prosecuted by Trial Attorney Ian D. Hoffman following an investigation by the Department of Veteran’s Affairs, Office of the Inspector General.
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Council Bluffs Man Sentenced on Methamphetamine Conspiracy and Firearm ChargesRead the Press Release
COUNCIL BLUFFS, IA – On February 15, 2013, Clifford Arthur Ellis, age 28, of Council Bluffs, Iowa, was sentenced in United States District Court in Council Bluffs on the charges of conspiracy to distribute methamphetamine and possession of a firearm in relation to drug trafficking, announced United States Attorney Nicholas A. Klinefeldt. United States District Court Judge Stephanie M. Rose sentenced Ellis to 175 months imprisonment regarding the drug conspiracy, and 60 months on the firearms charge, with the sentences to be served consecutively, that is one in addition to the other, for a total sentence of 235 months imprisonment. The Judge also ordered Ellis to serve 5 years of supervised release following his imprisonment. The Court also ordered Ellis to forfeit the firearm and ammunition which he had possessed, and to pay a $200.00 special assessment for the Crime Victim Fund. Ellis remains in the custody of the United States Marshal pending designation of the Federal Bureau of Prisons facility at which he will serve his sentence.
Ellis was sentenced upon his plea of guilty to conspiracy to distribute methamphetamine and possession of a firearm during and in the course of the conspiracy. The charges arose out of the investigation by the SouthWest Iowa Narcotics Task Force of a conspiracy to distribute methamphetamine, which conspiracy began in mid-2011, and was continued by some of the coconspirators, including Ellis, until at least April 1, 2012. For his involvement in the conspiracy, Ellis admitted responsibility for approximately 1.36 kilograms of methamphetamine. Ellis also regularly carried a loaded .45 caliber pistol, and then, later, a loaded 9mm pistol upon his person in the course of the conspiracy. On January 4, 2012, Ellis and two other persons were arrested by Council Bluffs Police Officers in the course of the burglary of a truck parked in an apartment parking lot in Council Bluffs. The 9mm pistol was recovered from Ellis at that time. On April 1, 2012, an Iowa State Patrol Trooper and Mills County Sheriff Deputies arrested Ellis and another person in Mills County carrying approximately one ounce of methamphetamine for distribution.
This investigation was conducted by the SouthWest Iowa Narcotics Task Force, the Council Bluffs, Iowa, Police Department, the Mills County Sheriff’s Department, and the Iowa State Patrol. The Pottawattamie County Attorney’s Office and the Mills County Attorney’s Office also aided in this case, which was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Cooperation Among Federal, State, and Local Law Enforcement Results in Crackdown on Sex Offenders Throughout the Eastern District of North CarolinaRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced a series of successful prosecutions of sex offenders in the Eastern District of North Carolina. The prosecutions were handled by law enforcement throughout the district, and include a wide variety of crimes and offenders, including producers of child pornography and repeat offenders.
“I am proud to announce this series of sentencing and guilty pleas,” said Walker, “not only because they help demonstrate that the safety of the children in our district is among our highest priorities, but because they demonstrate the extraordinary results that can be obtained only by the coordination and cooperation of agencies and prosecutors at every level of law enforcement.”
The cases included the sentencing of BRIAN JOSEPH VANCOURT of Havelock, NC, who on February 13, 2013 was sentenced by Senior District Court Judge Malcolm J. Howard to 192 months’ imprisonment and lifetime supervised release for receipt of child pornography. VANCOURT, who had previously been subject to a military court martial for child pornography crimes, was detected by two different law enforcement agencies – the Colorado Springs, CO Police Department and the FBI, less than one year after his release from the brig for his prior offense, using a peer to peer network to acquire child pornography and to discuss in explicit terms his desire to engage in sex acts with a 9 year old child. These leads led to a search conducted at VANCOURT’S Havelock-area residence by the FBI, the North Carolina State Bureau of Investigation, and the Havelock Police Department, which led to the discovery of a vast collection of child pornography, including tens of thousands of images and videos depicting the sexual abuse of children. The Craven County District Attorney’s office also participated in the prosecution.
That same day, Judge Howard sentenced BRANDON STEFAN LEE of Cumberland County to a term of 151 months imprisonment and lifetime supervised release for receipt of child pornography. LEE was discovered using peer-to-peer technology to traffic in child pornography from his residence on Fort Bragg, and had amassed a library of over 12,000 images of children being sexually exploited. Investigation was led by the Cumberland County Sheriff’s Office and the FBI.
Judge Howard also sentenced SHANE MICHAEL GREEN, 39, a former civilian firefighter on Camp Lejeune, to 108 months imprisonment and 20 years supervised release for downloading child pornography on a private network on the base. Law enforcement officials traced a user of peer-to-peer technology to that network and identified GREEN as the responsible party. GREEN had amassed a collection of child pornography totaling over 1,700 images and over 30 videos depicting child sexual abuse. The case was investigated by the Naval Criminal Investigative Service and the North Carolina State Bureau of Investigation.
Elsewhere, NATHANIEL BELTRAN GRINSTEAD of Wake County pled guilty on Tuesday to one count of manufacturing child pornography. GRINSTEAD produced child pornography involving at least two children in multiple North Carolina locations, and faces not less than 15, and up to 30 years imprisonment. He is scheduled for sentencing before District Court Judge Louise Flanagan in New Bern on June 5, 2013. The investigation in his case was an effort coordinated by the Morrisville Police Department and the FBI. The office of the Wake County District Attorney also participated in the prosecution.
Also on Tuesday, February 12, 2013, WILLIAM RICHARD RAPER, a/k/a WILLIAM RICHARD ROPER, a registered sex offender, pled guilty to one count of receipt of child pornography. RAPER, a resident of Craven County, was caught by a probation officer looking at child pornography on a laptop computer. Subsequent forensics confirmed that RAPER had used the internet to seek out child sex abuse images. Due to his prior sex offense, RAPER faces not less than 15 nor more than 40 years imprisonment. Sentencing is scheduled before Judge Flanagan on June 5, 2013. The New Bern Police Department, the North Carolina State Bureau of Investigation, and the FBI cooperated in the investigative effort, while the Craven County District Attorney’s office assisted in the prosecution.
These cases follow the earlier guilty plea of MITCHELL BYRON HALES, who pled guilty January 29, 2013 to one count of distributing child pornography. The plea was entered before Senior United States District Court Judge James C. Fox in Wilmington, North Carolina. HALES’ criminal conduct was also detected by investigators working undercover to identify and locate individuals engaged in the use of peer to peer technologies to trade in child pornographic material. He faces between 5 and 20 years imprisonment on the charge at the time of his sentencing, presently scheduled for the May 13, 2013 term of court. The case was investigated by the FBI and the Raleigh Police Department, and the Wake County District Attorney’s office collaborated on the prosecution.
Recent prosecutions also include sex offenders who have refused to comply with their sex offender registration obligations. On February 8, 2013, Chief United States District Court Judge James C. Dever sentenced FRED LAWRENCE DAVIS to 30 month’s imprisonment and lifetime supervised release for failing to maintain his sex offender registration obligations as required by law. After his release from a New York prison in 1996 after completing his sentence for Attempted First Degree Rape, DAVIS failed to register in any of the states he subsequently lived in, including New York, Arizona, and North Carolina, notwithstanding having been advised on multiple occasions of his registration obligations. Investigation of this case was led by the United States Marshal Service.
“We are grateful for the tremendous work and cooperation demonstrated by the results of these cases,” said Walker. “Whether you are a producer, distributor, or collector of images and videos of children being sexually abused, you should understand that this kind of conduct is unjustifiable in any way. We will not tolerate behavior that treats children as objects for sexual amusement. The difficult reality is that there are many more of these cases to come. As recent weeks demonstrate, we have a coalition dedicated to making sure that these cases are treated as the priorities they are.”
“These predators victimized a child every time they shared or downloaded a picture or video of child pornography. The FBI will remain vigilant and continue our active role as part of the national strategy to track down sexual predators to protect our children,” said Roger A. Coe, Acting Special Agent in Charge of the Charlotte Division of the FBI.
All of these cases were brought as part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
The cases were prosecuted by Assistant United States Attorneys Jay Exum and Ethan Ontjes and Special Assistant United States Attorneys Mark J. Griffith and David A. Coleman.
Co-Founders of South San Francisco Company Plead Guilty to Taking Money from Their Employees’ Benefit PlansRead the Press Release
SAN FRANCISCO – Kenneth A. Tholin and Enrique Quiles Sr., pleaded guilty Wednesday to a conspiracy to unlawfully and willfully convert to their own use, or the use of another, money from an employee benefit plan, in violation of 18 U.S.C. § 371, United States Attorney Melinda Haag announced.
According to their plea agreements, Tholin and Quiles were general partners and co-founders of a South San Francisco company called Geo Grout, Inc., which is a contractor that specializes in grouting techniques to solve soil and structural problems. They were the trustees of Geo Grout’s employee benefit plans and thus held the obligation and responsibility of ensuring that the employee benefit plans’ trust accounts only be used for the exclusive benefit of its participants or its beneficiaries.
According to their plea agreements, between March 2009 and April 2011, however, Tholin and Quiles removed a total of $1,772,500 from the employee benefit plans’ trust accounts for unauthorized purposes. Of the $1,772,500.00 removed from the employee benefit plans’ trust accounts, Tholin and Quiles have returned $908,481.26 to the employee benefit plans’ trust accounts.
Tholin and Quiles are scheduled to appear before United States District Court Judge Edward M. Chen at 2:30 p.m. on July 31 for sentencing. The maximum statutory penalty for a count of conspiracy, in violation of 18 U.S.C. § 371, is five years in prison and a fine of $250,000, or twice the gross gain or loss, whichever is greater, plus restitution if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Katherine Dowling and Hallie Hoffman are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Rawaty Yim and Christine Tian. The prosecution is the result of an investigation by the United States Department of Labor.
Clear Lake Man Charged with Federal Child Pornography OffensesRead the Press Release
Brandon Phinney, age 27, of Clear Lake, Iowa, has been indicted on federal child pornography charges. The charges are contained in an Indictment unsealed February 13, 2013, in United States District Court in Cedar Rapids.
The Indictment alleges that, between 2008 and 2011, Phinney received and possessed child pornography.
If convicted on all charges, Phinney faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 70 years’ imprisonment, $1,500,000 in fines, $600 in special assessments, and at least 5 years and up to life on supervised release following any imprisonment.
Phinney appeared on February 13, 2013, in federal court in Cedar Rapids and was released on bond. Phinney’s next appearance for trial is set for April 15, 2013.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Clear Lake Police Department, the Mason City Police Department, and the Iowa Division of Criminal Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-3005.
Clarion County Man Sentenced to Prison for Possessing Sexually Explicit Images of MinorsRead the Press Release
PITTSBURGH, Pa. - A resident of Clarion County has been sentenced in federal court to 30 months imprisonment followed by 10 years supervised release on his conviction of possessing child pornography, United States Attorney David J. Hickton announced today.
Chief United States District Judge Gary L. Lancaster imposed the sentence on Daniel Sloan Beavers, 42, of Rimersburg, Pa.
According to information presented to the court, on or about Oct. 20, 2010, Beavers knowingly possessed visual depictions, namely, images and videos contained in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct.
Assistant United States Attorney Amy L. Johnston prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Department of Homeland Security Investigations for the investigation leading to the successful prosecution of Beavers.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Charenton Man Indicted for Assault on Chitimacha Tribal OfficersRead the Press Release
LAFAYETTE, La: United States Attorney Stephanie A. Finley announced today that a federal grand jury indicted David Frederick, 37, Charenton, La., Thursday on four counts for assaulting three people, two of which were Chitimacha tribal police officers.
According to the indictment, Frederick is charged with two counts of assaulting, resisting and impeding the work of law enforcement on the Chitimacha Tribal Reservation on Jan. 27, 2013. He also is charged with one count of assault by a non-Indian on an Indian reservation and one count of interstate domestic violence against an intimate partner. The criminal activity took place on the Chitimacha Reservation.
If convicted, Frederick faces a maximum penalty of 20 years in prison, a $250,000 fine or both with up to three years of supervised release for each assault count. He also faces a maximum penalty of six months in prison, a $250,000 fine or both with one year of supervised release for the Assault within Indian Country count. He also faces a maximum penalty of 10 years in prison, a $250,000 fine or both with up to three years of supervised release for the Interstate Domestic Violence count.
Jurisdiction in Indian Country is based upon the unique sovereign relationship between the federal government and Indian tribes. Congress has criminalized certain acts that take place in Indian Country. The U.S. Attorney’s Office prosecutes all felony and misdemeanor cases, arising in Indian Country, that are within the jurisdiction of this office. The U.S. Attorney’s Office prosecutes cases, arising in Indian Country, involving felonies where either the defendant or the victim is an Indian or both the defendant and the victim are Indian. The U.S. Attorney’s Office also prosecutes cases involving misdemeanors where the defendant is a non-Indian.An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The Federal Bureau of Investigation and Chitimacha Tribal Police Department conducted the investigation. Assistant U.S. Attorney John Luke Walker and Assistant U.S. Attorney Daniel J. McCoy are prosecuting the case.
California Man Indicted for Controlled Substance and Firearm ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Tracy, California man was indicted by a federal grand jury for selling marijuana in Rapid City and for possessing a .357 caliber Smith & Wesson revolver with the serial number etched off.
Troy Leroy James, age 47, was indicted on January 23, 2013 for Possession With Intent to Distribute a Controlled Substance and Possession of a Firearm with Obliterated Serial Number. He appeared before U.S. Magistrate Judge Veronica L. Duffy on January 31, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 10 years' imprisonment and/or a $250,000 fine. The charges are merely an accusation and James is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Unified Narcotics Enforcement Team. Assistant U.S. Attorney Eric Kelderman is prosecuting the case. James was remanded to the custody of the U.S. Marshal. A trial date has not been set.
# # #Braddock Man Sentenced to Prison for Failing to Register as A Sex OffenderRead the Press Release
PITTSBURGH, Pa. - On Feb. 15, 2013, a resident of Braddock, Pa., was sentenced in federal court to one year and one day imprisonment followed by five years supervised release on his conviction of failing to register as a convicted sex offender, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Keith Birkett, Jr., 33.
According to information presented to the court, Birkett was required to register under the Sex Offender Registration and Notification Act after having been convicted in 2000 in Queens, New York, of the felony sex offense of Attempted Sexual Abuse of the First Degree. In or around January 2011, Birkett traveled in interstate commerce and knowingly failed to register and update a registration, as required by the Sex Offender Registration and Notification Act.
Assistant United States Attorney Amy L. Johnston prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Marshals Service for the investigation leading to the successful prosecution of Birkett, Jr.
Bossier City Man Sentenced for Staging Equipment TheftRead the Press Release
SHREVEPORT, La.: United States Attorney Stephanie A. Finley announced today that Kenneth A. Gordon Jr., 43, of Bossier City, was sentenced Thursday before U.S. District Court Judge Donald E. Walter, to 20 months in prison following his convictions for conspiracy and wire fraud after filing a false insurance claim for theft of his John Deere equipment. Gordon is also required to pay $104,134 in restitution.
Gordon’s co-defendant, Don E. Newton, was sentenced in December 2012 to two years of supervised probation for conspiring with Gordon to commit wire fraud.
Trial testimony revealed that Gordon had asked Newton to report that a John Deere skid steer and a John Deere telehandler valued at approximately $140,000 had been stolen in August 2006. Gordon then filed a false claim to Sentry Insurance for the equipment. Instead of being stolen, Gordon had been leasing the equipment to a friend for $15,000 per month. Gordon later agreed to sell the skid steer to another friend in Texas for an additional $15,000. Gordon testified that he permitted his elderly parents to travel across state lines to deliver the equipment to his friend even though they were unaware it had been reported stolen. Law enforcement discovered the John Deere skid steer in Hico, Texas, in June 2009 on the friend’s property with an identification number matching the one Gordon previously reported stolen.
“Insurance fraud is a serious federal offense that affects everyone,” Finley said. “We will continue to use every tool available to aggressively investigate and prosecute those individuals who perpetrate these types of financial crimes that affect our community.”
The Louisiana State Police/Insurance Fraud Auto Theft Unit and the Texas Department of Public Safety/Motor Vehicle Theft Services investigated the case. Assistant U.S. Attorney Cytheria D. Jernigan prosecuted the case.
Black Hawk County Sex Offender Sentenced for Failing to Update Registration as Sex OffenderRead the Press Release
A sex offender who failed to update his registration was sentenced February 12, 2013, to 41 months in federal prison.
Howard Sawyer, age 39, from Black Hawk County, received the sentence after a November 15, 2012, guilty plea to one count of failing to update his registration as a sex offender. In a plea agreement, Sawyer admitted that, in 2009, he left the Waterloo Residential Correctional Facility and traveled to Mexico, where he stayed until 2011 without updating his registration as required by the Sex Offender Registration and Notification Act. Sawyer was required to register because of his 1998 Buchanan County conviction for sexual abuse in the third degree.Sawyer was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Sawyer was sentenced to 41 months’ imprisonment. A special assessment of $100 was imposed, and Sawyer must also serve a 5-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the United States Marshals Service and the Iowa Division of Criminal Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-2029.
Bernard Addison Sentenced to 46 Months in Prison for Conspiring to Counterfeit Us Postal Service Money OrdersRead the Press Release
Addison Possessed $2.5 Million Worth Of Counterfeit Money Orders
KNOXVILLE, Tenn.-- Bernard Addison, 62, of Knoxville, Tenn., was sentenced to serve 46 months in federal prison by the Honorable Thomas W. Phillips, U.S. District Judge. Upon his release from prison, Addison will be supervised by the U.S. Probation Office for a period of two years.
The sentence was the result of a guilty plea June 8, 2012, to a federal grand jury indictment charging Addison with conspiring to counterfeit U.S. Postal Service money orders. Addison, formerly a local radio personality, had been receiving counterfeit money orders from the country of Ghana for several months and was filling out the payee information on the bogus money orders and redistributing them to others. He received a weekly MoneyGram payment of $250.00 for his involvement in the scheme.
The indictment and subsequent conviction of Addison was the result of an investigation conducted by the U.S. Postal Inspection Service and U.S. Secret Service. Assistant U.S. Attorney Matthew Morris represented the United States.
Beltsville Business Owner Sentenced to Prison for Evading over $522,000 in Federal and State TaxesRead the Press Release
Failed to Report Over $1.8 Million in Revenues Deposited in Overseas AccountsBaltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Bae Soo “Chris” Chon, age 49, of Beltsville, Maryland late yesterday to a year and a day in prison, followed by one year of supervised release for income tax evasion. Judge Quarles also ordered Chon to pay a fine of $15,000, and restitution of $412,404 to the IRS and $110,245.70 to the Maryland Office of the Comptroller. Chon was also required to pay a civil penalty of $441,482.50 for failing to disclose his foreign bank accounts. Chon tendered two checks to the IRS on September 11, 2012 for $111,069.72 and $679,775.78, reflecting the agreed restitution and his counsel’s calculation of the amount of the applicable interest and penalties, for the tax years 2008 and 2009 respectively.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“The license to run a business is not a license to evade paying taxes, said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. All Americans have to pay their fair share of taxes for the various government services and protections that we all enjoy. Mr Chon’s sentence serves as a reminder that IRS Criminal Investigation is committed to maintaining the integrity of our tax system and will continuously direct its efforts at the portion of individuals who willfully choose to evade their tax obligations.”
According to his plea agreement, Chon owned and operated Mirage Cosmetics, Inc., which manufactured cosmetics products at its facility on Tucker Street in Beltsville. Mirage marketed its products domestically through Walgreens, Target, Costco and other chain stores, as well as in Canada, Australia, United Kingdom, Australia, Estonia, Dubai, Kuwait, Lebanon, South Africa, Germany, Japan, New Zealand, China and Vietnam. As a subchapter S corporation, the net profits Mirage earned were required to be reported as taxable income by Chon.
In the fall of 2008, Chon started a tax evasion scheme whereby he caused the proceeds from Mirage’s transactions with many of its foreign distributors to be diverted into foreign bank accounts in Hong Kong and Seoul, South Korea. The funds deposited into these foreign accounts were not reflected on Mirage’s official records. Accordingly, Chon substantially understated Mirage’s income on his 2008 and 2009 personal income tax returns. Chon continued making deposits into these undisclosed foreign accounts until November 2010, when IRS investigators learned of the accounts.
On March 23, 2009, the IRS announced the agency’s Overseas Voluntary Disclosure Program, which offered taxpayers who maintained previously undisclosed foreign bank accounts incentives to disclose those accounts and bring themselves into compliance with the law. This highly-publicized program remained open until October 15, 2009, and nearly 15,000 taxpayers took advantage of it to make voluntary disclosures about foreign bank accounts in more than 60 foreign countries. Chon did not disclose the existence of his foreign bank accounts under this program.
On November 16, 2010, IRS agents executed a search warrant at Mirage’s offices and seized a laptop computer on which the records of the foreign accounts were kept. Thereafter, Chon timely filed his 2010 federal and state personal and corporate tax returns, in which he reported the amounts that had been deposited in the overseas bank accounts during the 2010 tax year. Chon paid the tax due for the tax year 2010 in 2011, after he became aware of the investigation.
As a result of the scheme, approximately $1,818,895 in revenues from Mirage’s foreign clients that were diverted into the overseas bank accounts resulted in understating Chon’s federal and state tax liability by $522,649.70 for the tax years 2008 and 2009.
United States Attorney Rod J. Rosenstein praised the IRS Criminal Investigation for its work in the investigation and thanked Assistant U.S. Attorney Jefferson M. Gray, who prosecuted the case.
Belleville Martial Arts Instructor Charged with Sexual Exploitation of A MinorRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Christopher M. Horton, 20, a Belleville martial arts instructor who lives in Highland, Illinois, was charged in United States District Court (federal), in a two-count Criminal Complaint, with Sexual Exploitation of a Child. In making this announcement, United States Attorney Wigginton noted that the federal charges were brought as part of a joint investigation and prosecution undertaken by his office, as well as the St. Clair County State’s Attorney’s Office and the Madison County State’s Attorney’s Office. The alleged federal violations took place between on or about May 1, 2012, and February 9, 2013, in Madison and St. Clair Counties. After a federal detention hearing held today, the Court ordered that Horton be held without bond pending trial. Charges and bonds in both St. Clair and Madison Counties have also been filed.
“The facts alleged in the criminal complaint are shocking and horrific. I will use all of my resources to ensure that these charges are proven beyond a reasonable doubt so that this person is placed where he can never prey upon our children again,” said United States Attorney Wigginton.
US Attorney Wigginton’s comments were echoed by Saint Clair County State’s Attorney Brendan Kelly, who said, “These alleged crimes against our children demand the swift and severe action taken by the US Attorney, my office, and my counterpart in Madison County.”
Madison County State’s Attorney Tom Gibbons noted: “I want to thank everyone who played a role in the investigation and charging of the defendant. By working together, we were able to uncover the vile acts committed by this man. These types of investigations are always heartbreaking and we will do everything we can to ensure that this predator is punished and removed from society and our victims get the justice they deserve.”
The offenses charged in the federal complaint allege that, between on or about May 1, 2012, and February 9, 2012, Horton video recorded himself engaged in sexual activity with two minors.
A federal trial date has not yet been set. If convicted of Sexual Exploitation of a Minor, Horton faces a term of imprisonment of not less than fifteen (15) years but not more than 30 years of imprisonment on each count, a fine up to $250,000, and a term of supervised release of not less than five years, up to, and including, a lifetime of supervision once he is released.
A criminal complaint is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the Madison County Sheriff’s Department, the Federal Bureau of Investigation’s Metro East Cyber Crimes and Analysis Task Force, the Highland, Illinois Police Department and the Belleville, Illinois Police Department. The case is assigned to Assistant United States Attorney Ali Summers.
Baltimore Felon Exiled to 9 Years in Prison for Possessing a Gun and AmmunitionRead the Press Release
Maryland Task Force Aggressively Pursues Federal Charges for Child ProstitutionBaltimore, Maryland - U.S. District Judge James K. Bredar sentenced Justin Harris, age 28, of Baltimore, Maryland, today to nine years in prison followed by three years of supervised release for being a felon in possession of a gun and ammunition.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to Harris’ plea agreement, on January 17, 2012, an undercover Baltimore Police officer saw a woman offering crack cocaine for sale in the 1800 block of N. Collington Avenue in Baltimore. The undercover officer provided the woman with pre-recorded buy money, and saw the woman walk into a home on N. Collington Avenue where she obtained the drugs. The home was Harris’ residence. A search warrant was executed on January 30 at the home. Harris was present. Law enforcement seized a handgun with an obliterated serial number, and 10 cartridges, along with 4.7 grams of cocaine, marijuana and drug trafficking paraphernalia.
Harris had previously been convicted of a felony and was prohibited from possessing a gun or ammunition.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorney Kenneth S. Clark, who prosecuted the case.
Andover Man Sentenced for Selling Counterfeit Goods on the InternetRead the Press Release
BOSTON - An Andover man was sentenced yesterday for selling thousands of counterfeit electronics out of his home using eBay and on his own website.
Ahmad Raad, 56, was sentenced by U.S. District Judge George A. O’Toole to four years of probation, the first six months of which must be served in home confinement with electronic monitoring, $100,000 in restitution to the corporate victims, and individual restitution to all identified individual victims. In November 2012, Raad pleaded guilty to selling counterfeit goods and mail fraud.
Between 2007 and 2011, Raad sold a variety of electronic merchandise, including batteries, chargers and memory sticks, under the name “eMartCentral” using eBay, or the website “www.emartcentral.com.” Raad purchased the merchandise that he sold directly from China. The merchandise bore a variety of brand names and trademarks, including those of Sony, SanDisk, Olympus, and Kingston. But much of this merchandise was not made by these companies or by companies authorized to use the companies’ names or marks. In some instances, Raad received merchandise from China that did not bear any product labels, and separately received sheets of Sony and SanDisk labels which he affixed to the merchandise and sold. During the four year period, Raad sold thousands of pieces of counterfeit merchandise in this manner.
United States Attorney Carmen M. Ortiz; Bruce M. Foucat, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; and Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Amy Harman Burkart of Ortiz’s Cybercrime Unit.
14 February 2013
Winthrop Insurance Advisor Pleads Guilty to 10 Year Investment Fraud SchemeRead the Press Release
Boston - A Winthrop man was convicted today in federal court of mail and wire fraud in connection with a 10 year scheme that centered on investments in “life settlements,” by which he defrauded more than 20 victims of at least $4.5 million.
Joseph Gennaco, 68, of Winthrop, Mass. and Jupiter, Fla., pleaded guilty before U.S. District Judge Nathaniel M. Gorton to 11 counts of wire fraud and 16 counts of mail fraud.
Had the case proceeded to trial the Government’s evidence would have proven that from 2001 through 2011, Gennaco defrauded customers by falsely representing that their money would be invested in various insurance-based instruments, when instead he diverted the funds for his own personal and business purposes. Gennaco operated in the name of several entities, including Gennaco & Associates, Oceanview Financial Services, GCT Trust, and Crescent Management Group. Gennaco’s scheme centered on misrepresentations to investors that their funds would be invested in one or more life insurance policies - or “life settlements” - and that the investments would be repaid with a guaranteed profit from the sale of those policies. Instead, Gennaco diverted investors’ funds to his own uses, allowed insurance policies to lapse by failing to pay the premiums, and failed to repay investors when he sold the policies. By this scheme Gennaco obtained at least $4.5 million from more than 20 victims.
Judge Gorton scheduled sentencing for May 23, 2013. Gennaco pled guilty pursuant to a binding plea agreement that, if accepted by the Judge, would require a sentence between 92 and 100 months, to be followed by three years of supervised release, together with fines and restitution to victims.
United States Attorney Carmen M. Ortiz; Kevin Niland, Inspector in Carge of the U.S. Postal Inspection Service; and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Division made the announcement today. The Suffolk County District Attorney’s Office, Massachusetts Securities Division, Massachusetts Division of Insurance, and the U.S. Trustee’s Office in Boston also provided assistance in the investigation. The case is being prosecuted by Assistant U.S. Attorneys Mark J. Balthazard and Jeremy M. Sternberg of Ortiz’s Economic Crimes Unit.
Winchester Man Sentenced on Sex ChargesRead the Press Release
HARRISONBURG, VIRGINIA -- A 28-year-old Winchester man who pled guilty in October 2012 was sentenced this morning in the United States District Court for the Western District of Virginia in Harrisonburg to child exploitation and child pornography charges.
James Cobler, 28, of Winchester, Va., previously pleaded guilty to three counts of sexually exploiting a 4-year-old boy for the purpose of producing child pornography, one count of transporting child pornography and one count of possessing child pornography.
This morning in District Court, Cobler was sentenced to 120 years of Federal incarceration.
“Mr. Cobler’s sexual abuse targeted a completely vulnerable victim, a 4-year old boy.” United States Attorney Timothy J. Heaphy said today. “When predators like Mr. Cobler exploit children, we will target them with every available resource and ensure they are held accountable.”
According to evidence presented at previous hearings by Assistant United States Attorney Nancy Healey and Special Assistant United States Attorney Shannon Wright, an investigator with the Page County Sheriff’s Office, working in an undercover capacity on a peer-to-peer file sharing network, downloaded several child pornography images from Cobler in April 2012.A subsequent search warrant was issued and executed at Cobler’s Winchester home. While conducting the search, Cobler admitted to downloading child pornography and further admitted that on multiple occasions, he had molested a 4-year-old boy whom he occasionally cared for. He also admitted to taking pictures and a video of the sexual abuse.
The investigation of the case was conducted by the Frederick and Page County Sheriff’s Offices and the Northern Virginia-D.C. Internet Crimes Against Children Task Force. The United States Secret Service conducted the forensic exam. Assistant United States Attorney Nancy Healey and Special Assistant United States Attorney Shannon Wright are prosecuting the case for the United States.
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.
William Joey Gutierrez 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 February 14, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, WILLIAM JOEY GUTIERREZ, III, a 21-year-old resident of Pryor and an enrolled member of the Crow Tribe of Indians, appeared for sentencing. GUTIERREZ was sentenced to a term of:
Prison: 28 months
Special Assessment: $100
Supervised Release: 3 years
GUTIERREZ was sentenced in connection with his guilty plea to assault resulting in serious bodily injury.
In an Offer of Proof filed by Assistant U.S. Attorney E. Vincent Carroll, the government stated it would have proved at trial the following:
On April 17, 2012, GUTIERREZ and the victim were in the bedroom of their house in Dunmore on the Crow Indian Reservation. GUTIERREZ (later while being interviewed by law enforcement) admitted that, while in their bedroom, he hit the victim in her face with his closed fist because of "alcohol and jealousy." Both the victim and GUTIERREZ had been drinking. The victim was taken to the hospital, where she was treated for a fractured orbital and medial wall. Two treating physicians indicated that the victim's injuries constituted serious bodily injury because of extreme physical pain and protracted and obvious disfigurement.
Several witnesses at the house stated that they heard the victim yelling, "No!," and then saw the victim with a swollen eye shortly afterwards.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that GUTIERREZ will likely serve all of the time imposed by the court. In the federal system, GUTIERREZ 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 Federal Bureau of Investigation and the Bureau of Indian Affairs.
West Valley Man Charged with Three Robberies in Indictment Returned by Federal Grand JuryRead the Press Release
SALT LAKE CITY – A federal grand jury returned an indictment Wednesday afternoon charging Pete Mafua, age 19, of West Valley City with two counts of bank robbery and one credit union robbery in connection with robberies in Magna, West Valley City, and Taylorsville earlier this month.
The indictment charges Mafua with a Feb. 1, 2013, robbery of Zions Bank at 8375 West 3500 South in Magna; a Feb. 2, 2013, robbery of America First Credit Union at 4976 West 3500 South in West Valley City; and a second Feb. 2 robbery at U.S. Bank located at 4135 South Redwood Road in Taylorsville.
According to a complaint filed in connection with the Zions Bank robbery, a male entered the bank wearing a black hat, black shirt, and a blue coat. The suspect’s face was uncovered. He approached the teller counter and presented a note to the teller which demanded cash and stated that he had a firearm. The suspect left the bank after receiving cash from the teller.
The suspect left the note at the bank and law enforcement officers were able to process it for fingerprints. According to the complaint, at least one fingerprint was used to identify Mafua as the robbery suspect. Additionally, video surveillance of the robbery was shown on local news programs and law enforcement officers received a tip identifying the bank robbery suspect as Mafua.
Mafua was arrested Feb. 2. U.S. Magistrate Judge Evelyn J. Furse found him to be a danger to the community and ordered him detained pending trial. Mafua will be arraigned Thursday afternoon on the charges in the indictment.
The case is being investigated by the FBI Safe Streets Task Force, the Salt Lake Unified Police Department, and the West Valley City Police Department.
Wessington Springs Man Pleads Guilty to Firearm ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that Jonathan Tyrrell, age 53, of Wessington Springs, South Dakota appeared before U.S. District Judge Roberto A. Lange on February 12, 2013 and pled guilty to Count I of the Indictment that charged him with Possession of a Firearm by a Prohibited Person.
In addition to the $100 assessment to the Victim Assistance Fund, the maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release and an additional 2 years of supervised release upon revocation. Restitution may also be imposed.
The charge stems from an incident wherein Tyrrell, on or about the 15th day of December 2011, was stopped by the Jerauld County Sheriff. Methamphetamine, marihuana, and four firearms were found in his vehicle. Tyrrell tested positive for use of controlled substances.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Kathryn N. Rich. Tyrrell was remanded to the custody of the U.S. Marshal pending sentencing, which has been set for May 2, 2013.
Virginia Gardens Man Sentenced to 37 Months in Prison for Dealing in Firearms Without A LicenseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo Barrera, Special Agent in Charge, Miami Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO), and Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), announce that Jose Antonio Quintana, 55, of Virginia Gardens, Florida, was sentenced today by U.S. District Judge Kenneth L. Ryskamp to 37 months in prison, to be followed by 3 years of supervised released, for dealing in firearms without a federal firearms license, in violation of Title 18, Untied States Code, Sections 922(a)(1)(A).
As part of the sentence, the Court ordered the forfeiture of 96 rifles, 79 shotguns, 418 handguns and approximately 25,889 rounds of ammunition that were seized from Quintana as part of the investigation, resulting in one of the largest firearms forfeitures from one individual in the Southern District of Florida.
According to the criminal complaint, superseding information, and stipulated factual basis filed in the case, Quintana attended numerous gun shows across the State Florida between November 2008 and July 7, 2012. At each gun show, Quintana sold firearms as purported “private sales.” This practice allowed Quintana to benefit from a cash business without the expense of operating a storefront, reporting his activity to ATF, completing any ATF paperwork (ATF Form 4473), and without conducting the required background checks of any customers.
During this period, undercover ATF agents purchased eleven (11) firearms, valued at $6,115.00, from Quintana at various gun shows. In one of the undercover purchases, Quintana claimed that the law allowed him to privately sell a reasonable unspecified quantity of firearms. In the recorded conversation, Quintana stated, “Let us say, twelve, twenty four, thirty six, fifty, firearms per year. Let us say, reasonable. . . I surpassed that a long time ago.”
Mr. Ferrer commended the investigative efforts of ATF, BSO and PBSO. Mr. Ferrer also thanked the Miami-Dade Police Department, the Miami Beach Police Department, the City of Miami Police Department, and the Virginia Gardens Police Department. The case was prosecuted by Assistant U.S. Attorney Adam McMichael.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
U.S. Trustee Program’s Settlement with Financial Adviser Includes Monetary Remedies, Independent MonitorRead the Press Release
WASHINGTON – The U.S. Trustee Program has filed in bankruptcy court a national settlement with financial adviser Capstone Advisory Group LLC in the bankruptcy case of GSC Group, Inc. If approved by the Bankruptcy Court for the Southern District of New York, the proposed settlement will resolve the U.S. Trustee’s allegations that Capstone failed to make accurate and complete disclosures to support the bankruptcy court’s approval of its employment in the case. In particular, the U.S. Trustee alleged that Capstone made inaccurate representations about its relationship with a contractor assigned to lead its engagement and to perform work in the case.
Under the proposed settlement, Capstone will pay $1 million; waive an additional success fee of $2.75 million; adopt policies and procedures approved by an independent monitor to ensure accurate and complete disclosure, including with respect to employment of contractors and conflicts of interest; and undergo compliance reviews by the monitor for two years.
If approved by the bankruptcy court, the settlement will mark the first time the U.S. Trustee Program has obtained relief that includes an independent monitor’s review of a professional firm.
“This important settlement shows that the U.S. Trustee Program will take vigorous enforcement action when we uncover evidence that experienced professional firms have failed to satisfy their bedrock obligations to provide true and complete facts to the U.S. Trustee and the bankruptcy court,” stated Clifford J. White III, Director of the Executive Office for U.S. Trustees. “I commend Capstone for recognizing the seriousness of this matter by voluntarily accepting significant financial consequences and subjecting itself to independent review to ensure that similar conduct does not recur.”
Director White also commended U.S. Trustee Tracy Hope Davis for bringing the original action in the bankruptcy court in Manhattan, as well as attorneys who worked on the case, including Trial Attorney Andrea Schwartz of the U.S. Trustee’s Office in Manhattan and Trial Attorney Carole Ryczek of the U.S. Trustee’s Office in Madison, Wis.
The USTP also reached agreement with the contractor and his affiliated companies.
The case is In re GSC Group Inc., U.S. Bankruptcy Court, Southern District of New York, No. 10-14653.
Contact:Jane Limprecht, Public Information Officer
Executive Office for U.S. Trustees
(202) 305-7411U.S. Attorney Hickton Statement on 5 Legionnaires' DeathsRead the Press Release
PITTSBURGH - U.S. Attorney David J. Hickton issued the following statement today regarding recent deaths from Legionnaires' disease linked to a Pittsburgh Veterans Administration facility:
"This matter is of great public interest and we understand and appreciate the public's concern. We regard this as a very serious matter.
"An active investigation is underway by the Inspector General.
"We have been in communications with the Inspector General to share our interest and to offer resources.
"After the report of the Inspector General has been completed we will conduct our own independent review and take appropriate action as necessary."
Two Minnesota Men Plead Guilty for Their Roles in Large, Multi-state Identity Theft RingRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a Minnesota man pleaded guilty for his role in a large, multi-state identity theft ring. Jerome Davis, Jr., age 44, pleaded guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Davis, who was indicted along with four others on November 14, 2012, entered his plea before United States District Court Judge Paul A. Magnuson.
In his plea agreement, Davis admitted that from 2010 through 2011, he was part of a conspiracy to commit bank fraud. For his part, Davis recruited individuals to conduct fraudulent transactions at financial institutions and retail establishments. He provided the recruited individuals with fraudulent identification documents and counterfeit checks that Davis received from another member of the conspiracy. Davis also drove individuals to retail stores where they conducted the fraudulent transactions.
According to the indictment to which Davis pled guilty, members of the conspiracy obtained victims’ personal information from various sources, including mail theft, vehicle break-ins, burglaries and from individuals who stole the information from their places of employment. The victim information was then used to create false identification documents, such as driver’s licenses and identification cards, along with counterfeit checks. The counterfeit checks were used to purchase expensive items and gift cards at retail stores. The items were later returned for cash, which was divided among those involved in the criminal activity.
The victim information was also used to open bank accounts and access the existing bank accounts of others. As part of this scheme, co-conspirators deposited counterfeit checks into the accounts of unknowing individuals, only to withdraw funds from those same accounts a short time later. To avoid detection, co-conspirators only accessed each bank account a few times before moving on to their next victim.
For his part, Davis has agreed that he is responsible for approximately $170,389 in fraudulent transactions.
Yesterday, co-defendant Jemall Ronta Williams, age 38, also pleaded guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft. In his plea agreement, Williams admitted that he joined the conspiracy in 2009, and obtained victim information from a co-conspirator who worked at Wells Fargo. Williams also admitted to providing the stolen information to others who used it to create false and fictitious identification documents to pass counterfeit checks. In addition, Williams admitted recruiting individuals to pass counterfeit checks. Williams admitted that he is responsible for approximately $40,000 in fraudulent transactions.
For their crimes, Davis and Williams each face a maximum potential penalty of 30 years in prison for conspiracy to commit bank fraud and a mandatory minimum consecutive penalty of two years in prison for identity theft. Judge Magnuson will determine their sentences at future hearings, not yet scheduled.
Trial is scheduled for April 1, 2013, for the three others who were indicted with Davis and Williams. In September of 2012 following a jury trial, four men were convicted for their roles in this identity theft ring.
Twenty-four other co-conspirators have already entered guilty pleas and are also awaiting sentencing.
These cases resulted from an investigation conducted by the Minnesota Financial Crimes Task Force, the U.S. Postal Inspection Service, and the Internal Revenue Service-Criminal Investigations. They are being prosecuted by Assistant U.S. Attorney Karen B. Schommer.
The Financial Crimes Task Force was established pursuant to state law and is comprised of local, state, and federal law enforcement investigators dedicated to combating the growing problem of cross-jurisdictional financial crimes. The task force, overseen by an advisory board also created under state law, serves the entire District of Minnesota, presenting its cases to county or federal prosecutors, as appropriate.The task force and the Minnesota U.S. Attorney’s Office want to remind people to protect themselves from identity theft. For more information, visit http://www.stopfraud.gov/protect-identity.html.
For more information on how to avoid becoming a victim of identity theft, visit https://postalinspectors.uspis.gov/investigations/MailFraud/fraudschemes/mailtheft/IdentityTheft.aspx . The IRS-Criminal Investigations also urges citizens to review the Taxpayer Guide to Identity Theft, which can be found at http://www.irs.gov.
For tips on how to prevent mail theft, visit https://postalinspectors.uspis.gov/investigations/MailFraud/fraudschemes/mailtheft/MailTheft.aspx.
Two Men Plead Guilty to Robbery Charges in Recent Attack in Northeast Washington-Defendants Caught After Crashing A Stolen Car-Read the Press Release
WASHINGTON - Tayvaughn Sinclair, 25, of Mount Rainier, Md., and John Wright, 22, of Washington, D.C., pled guilty today to robbery charges stemming from an attack against two men earlier this year in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Sinclair and Wright entered their guilty pleas in the Superior Court of the District of Columbia. In addition to the robbery charge, Sinclair pled guilty to one count of unauthorized use of a motor vehicle. The Honorable William M. Jackson scheduled sentencing for April 12, 2013. Under the Court’s voluntary sentencing guidelines, Sinclair likely faces up to six years in prison on the robbery and up to 32 months on the second charge. The guidelines call for a likely range for Wright of up to five years in prison for robbery.
According to the government’s evidence, Sinclair and Wright accosted the two victims at about 10:20 p.m. on Jan. 4, 2013. The victims were working on a taxicab in a parking lot in the 5500 block of South Dakota Avenue NE. The defendants asked them for a cigarette lighter. When the victims said they didn’t have one, Sinclair ordered them to give up their wallets and cash. The victims complied. Wright then went through their pockets, and he and Sinclair took the victims’ iPhones, wallets, shoes and keys.
Sinclair and Wright then got into a red Plymouth Breeze, threw the victims’ keys on the ground, and drove off. The victims notified police that they had just been robbed by men in a red car and provided a portion of the license plate number. Within a few minutes, an officer spotted a vehicle matching this description being driven in the 200 block of Galloway Street NE. Police attempted to stop the car, but Sinclair, who was driving, did not stop.
Sinclair eventually crashed into another vehicle at the intersection of Eastern Avenue and Monroe Street NE. The occupants of the other vehicle included a mother and two young children, and the mother was transported to a hospital for injuries sustained in the accident.
Sinclair, meanwhile, attempted to flee on foot but was apprehended. Wright, who was also injured in the accident, was apprehended in the getaway vehicle. Officers recovered the victims’ stolen items from the vehicle. The car had been stolen earlier in the day.
In announcing the guilty pleas, U.S. Attorney Machen commended the work of the Metropolitan Police Department, which investigated the case. He also acknowledged the efforts of Assistant U.S. Attorney Trevor N. McFadden, of the Fourth District Felony Prosecution Unit, who prosecuted the matter.
13-055Two Members of Manhattan Trinitarios Gang Sentenced in Manhattan Federal Court for Racketeering and Firearms OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that JONATHAN FELIZ, the former leader of the Manhattan branch of the “Trinitarios,” a violent street and prison gang , and LOUINSKY MINIER, who was also a member of the Trinitarios, were sentenced today for racketeering and firearms offenses. MINIER was also sentenced for the murder of a rival gang member, Roy Abreu, in November 2006. FELIZ was charged with 41 others in March 2009, and MINIER was charged in June 2010. FELIZ and MINIER were each sentenced today by U.S. District Judge George B. Daniels. FELIZ received a sentence of 30 years’ imprisonment. MINIER received a sentence of 220 months’ imprisonment, to be served after he completes a seven-year sentence he is currently serving on related New York state charges.
Manhattan United States Attorney Preet Bharara said: “For much of the past decade, the Trinitarios street gang strangled pockets of Upper Manhattan in its cold-blooded grip infesting neighborhoods with drugs and lethal violence. With today’s sentencings, Jonathan Feliz and Louinsky Minier will be off the streets for years to come, and other gang members should be on notice that we will continue working to end their brutal reigns and see that they are punished.”
According to the Indictment, the Informations, and other documents filed in the case, as well as statements made during the sentencing proceedings:
FELIZ was the leader of the Manhattan faction of the Trinitarios gang, and in that capacity, he ordered acts of violence to be committed by other gang members, acquired and stored guns, and managed a large-scale narcotics trafficking network in Washington Heights. The gang worked with other associates, collectively known as the “Washington Heights Marijuana Organization,” (the “WHMO”) to control drug trafficking – in particular, the trafficking of marijuana – on several blocks in the Washington Heights section of Manhattan. Members and associates of the WHMO operated a business that distributed and sold marijuana and other narcotics, and committed, conspired, attempted, and threatened to commit acts of violence, including murder, against rival traffickers, competitors, and individuals who stole narcotics proceeds from the enterprise. Members and associates of the WHMO conspired and attempted to kill at least two people in addition to Roy Abreu and, on November 23, 2006, MINIER shot Abreu to death. According to arguments made at sentencing, MINIER shot and killed Abreu, and shot another man, in connection with a dispute over $150,000 of drug proceeds that had been stolen from the WHMO. FELIZ and MINIER are half-brothers.
Mr. Bharara praised the work of the Drug Enforcement Administration, the New York City Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The case is being handled by the Office’s Violent Crimes Unit. Assistant U.S. Attorneys Nola B. Heller and Michael D. Maimin are in charge of the prosecution.
Twin Falls Man Pleads Guilty to Drug Charge in Aryan Knights InvestigationRead the Press Release
BOISE – Christopher John Solders, 26, of Twin Falls, Idaho, pleaded guilty today in United States District Court to distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Solders admitted that he sold methamphetamine on two occasions to a person working with law enforcement officers. The first transaction occurred on February 22, 2012, and the second on May 1, 2012.
A federal grand jury indicted Solders on September 12, 2012. The indictment and 13 others were the result of a long-term investigation by the Treasure Valley Metro Violent Crimes Task Force. The investigation focused on illegal drug distribution by the “Aryan Knights,” a gang active in prison and on the streets throughout Idaho. Through the investigation, law enforcement agents identified Aryan Knights gang members who were trafficking methamphetamine, as well as associates of the gang who were the source of that methamphetamine.
The charge is punishable by up to 20 years in prison, a maximum fine of $1 million, and at least three years of supervised release.
Sentencing is set for April 29, 2013, before the Hon. John C. Coughenour, U.S. District Judge for the Western District of Washington, at the federal courthouse in Boise.
The cases were the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, U.S. Marshals Service, and the Treasure Valley Metro Violent Crime Task Force, a task force comprised of federal, state and local agencies, including the Boise Police Department, Ada County Sheriff’s Office, Caldwell Police Department, Nampa Police Department, Meridian Police Department, and Canyon County Sheriff’s Office.
The Aryan Knights cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Transocean Pleads Guilty, Is Sentenced to Pay $400 Millionin Criminal Penalties for Criminal ConductLeading to Deepwater Horizon DisasterRead the Press Release
Transocean Deepwater Inc. pleaded guilty today to a violation of the Clean Water Act (CWA) for its illegal conduct leading to the 2010 Deepwater Horizon disaster, and was sentenced to pay $400 million in criminal fines and penalties, Attorney General Holder announced today.
In total, the amount of fines and other criminal penalties imposed on Transocean are the second-largest environmental crime recovery in U.S. history – following the historic $4 billion criminal sentence imposed on BP Exploration and Production Inc. in connection with the same disaster.
“Transocean’s guilty plea and sentencing are the latest steps in the department’s ongoing efforts to seek justice on behalf of the victims of the Deepwater Horizon disaster,” said Attorney General Holder. “Most of the $400 million criminal recovery – one of the largest for an environmental crime in U.S. history – will go toward protecting, restoring and rebuilding the Gulf Coast region.”
“The Deepwater Horizon explosion was a senseless tragedy that could have been avoided,” said Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division. “Eleven men died, and the Gulf’s waters, shorelines, communities and economies suffered enormous damage. With today’s guilty plea, BP and Transocean have now both been held criminally accountable for their roles in this disaster.”
Transocean’s guilty plea was accepted, and the sentence was imposed, by U.S. District Judge Jane Triche Milazzo of the Eastern District of Louisiana. During the guilty plea and sentencing proceeding, Judge Milazzo found, among other things, that the sentence appropriately reflects Transocean’s role in the offense conduct, and that the criminal payments directed to the National Academy of Sciences and National Fish and Wildlife Foundation are appropriately designed to help remedy the harm to the Gulf of Mexico caused by Transocean’s actions. The judge also noted that the fines and five year probationary period provide just punishment and adequate deterrence.
Transocean pleaded guilty to an information, previously filed in federal court in New Orleans, charging the company with violating the CWA. During the guilty plea proceeding today, Transocean admitted that members of its crew onboard the Deepwater Horizon, acting at the direction of BP’s well site leaders, known as “company men,” were negligent in failing to investigate fully clear indications that the Macondo well was not secure and that oil and gas were flowing into the well.
The criminal resolution is structured to directly benefit the Gulf region. Under the order entered by the court pursuant to the plea agreement, $150 million of the $400 million criminal recovery is dedicated to acquiring, restoring, preserving and conserving – in consultation with appropriate state and other resource managers – the marine and coastal environments, ecosystems and bird and wildlife habitat in the Gulf of Mexico and bordering states harmed by the Deepwater Horizon oil spill. This portion of the criminal recovery will also be directed to significant barrier island restoration and/or river diversion off the coast of Louisiana to further benefit and improve coastal wetlands affected by the spill. An additional $150 million will be used to fund improved oil spill prevention and response efforts in the Gulf through research, development, education and training.
Transocean was also sentenced, according to the plea agreement, to five years of probation – the maximum term of probation permitted by law.
A separate proposed civil consent decree, which resolves the United States’ civil CWA penalty claims, imposes a record $1 billion civil Clean Water Act penalty, and requires significant measures to improve performance and prevent recurrence, is pending before U.S. District Judge Carl J. Barbier of the Eastern District of Louisiana.
The charges and allegations pending against individuals in related cases are merely accusations, and those individuals are considered innocent unless and until proven guilty.
The guilty plea and sentencing announced today are part of the ongoing criminal investigation by the Deepwater Horizon Task Force into matters related to the April 2010 Gulf oil spill. The Deepwater Horizon Task Force, based in New Orleans, is supervised by Assistant Attorney General Breuer and led by Deputy Assistant Attorney General John D. Buretta, who serves as the director of the task force. The task force includes prosecutors from the Criminal Division and the Environment and Natural Resources Division of the Department of Justice; the U.S. Attorney’s Office for the Eastern District of Louisiana, as well as other U.S. Attorneys’ Offices; and investigating agents from: the FBI; Environmental Protection Agency, Criminal Investigative Division; Environmental Protection Agency, Office of Inspector General; Department of Interior, Office of Inspector General; National Oceanic and Atmospheric Administration, Office of Law Enforcement; U.S. Coast Guard; U.S. Fish and Wildlife Service; and the Louisiana Department of Environmental Quality.
This case was prosecuted by Deepwater Horizon Task Force Director John D. Buretta, Deputy Directors Derek A. Cohen and Avi Gesser, and task force prosecutors Richard R. Pickens II, Scott M. Cullen, Colin Black and Rohan Virginkar.
Three Brooklyn, N.Y., Men Arrested for Armed Robberies of New Jersey T-mobile StoresRead the Press Release
NEWARK, N.J. – Three Brooklyn, N.Y, men were arrested today by agents of the FBI in connection with two armed robberies of T-Mobile stores in Linden, N.J., and Woodbridge, N.J., U.S. Attorney Paul J. Fishman announced.
Terrell McQueen, 29, is charged by Complaint with conspiracy to commit Hobbs Act robbery and two counts of using a firearm in furtherance of a crime of violence. Carl Williams, 29, and Eric Williams, 32, are each charged with one count of conspiracy to commit Hobbs Act robbery and one count of using a firearm in furtherance of a crime of violence. All three defendants are scheduled to appear today before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to the Complaint:
On Sept. 20, 2012, Carl Williams and a conspirator walked into a T-Mobile store in Linden. The conspirator brandished a firearm, and the men then tied up the employees in the back of the store. After taking 50 to 60 cell phones, the men fled in a Land Rover. Terrell McQueen, Carl Williams, Eric Williams, and other conspirators then delivered the stolen cell phones to a cell phone store in Brooklyn.
On Oct. 2, 2012, two men, one of whom was armed with a firearm, entered a T-Mobile store in Woodbridge. After locking the front door, the men took the employees to the back of the store and tied them up. The men took approximately 40 cell phones. One of the men then used his own cell phone to contact a third individual, who drove the other two men away in a Land Rover. Terrell McQueen, Eric Williams, and other conspirators later delivered the stolen cell phones to the same cell phone store in Brooklyn.
If convicted of the Hobbs Act conspiracy charges, McQueen, Carl Williams, and Eric Williams face a maximum penalty of 20 years in prison and a fine of $250,000. If convicted of the two counts of using a firearm in furtherance of a crime of violence, McQueen faces a mandatory minimum of 32 years in prison to run consecutively to any sentence that he receives for the Hobbs Act conspiracy charge and a maximum of life in prison, as well as a fine of up to $250,000. If convicted of the one count of using a firearm in furtherance of a crime of violence, Carl Williams and Eric Williams each face a mandatory minimum of seven years in prison to run consecutively to any sentence that they receive for the Hobbs Act robbery charge and a maximum of life in prison and a fine of up to $250,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez, with the investigation leading to the arrests and charges. He also thanked the Linden and Woodbridge Police Departments in New Jersey, as well as the New York City and Nassau County Police Departments and the Kings County District Attorney’s Office in New York for their work in this case.
The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto of the U.S. Attorney’s Office General Crimes Unit in Newark.The charge and allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
12-080McQueen, Terrell et al., Complaint
Teen Dating Violence Awareness and PreventionRead the Press Release
Valentine’s Day is a time to celebrate loving relationships. But maybe it is also a good time for parents to check-in with their teenagers who may be involved in a romantic relationship.
If you are a parent of a teenager, do you know the names and faces of three of their friends? Chances are, one of them—maybe your own son or daughter—will be in an abusive relationship.
The fact is teen dating violence is often hidden and unreported. Not only do teens often lack the experience to navigate romantic relationships, they may also be unable to voice their feelings or communicate when emotional situations take a turn for the worse. Even more frightening is that if adolescents find the courage to tell their friends about being in an abusive relationship, statistics show that more times than not, their friends won’t know what to do to get them help.
February is National Teen Dating Violence Awareness and Prevention Month and it is a great opportunity to raise awareness and focus efforts on breaking the cycle of violence by providing information about the availability of services and the importance of healthy relationships to young victims, their families, and their communities.
While the Nation’s understanding of domestic violence, sexual assault and stalking has increased, so too has our awareness that these forms of violence affect all age groups and that violence within relationships often begins during adolescence. However the pattern of abuse can start much earlier. Studies show that children who are victimized or witness violence may carry this experience with them to the playground, classroom and later to teen relationships and ultimately adult intimate partner violence. As professionals, parents, educators, political and business leaders and other members of our local communities, we must teach about and model healthy, non-violent relationships. Intervention and prevention efforts are key elements to stopping the cycle of abuse and are priorities at the Department of Justice and here in the United States Attorney’s Office for the Northern District of Mississippi.
Attorney General Eric Holder’s Defending Childhood initiative is leveraging existing resources across the department to focus on preventing, addressing, reducing, and more fully understanding childhood exposure to violence. In support of this initiative, the Department’s Office on Violence Against Women awarded $5.6 million to 17 organizations that support services for children and caretakers including direct counseling, advocacy or mentoring for children or youth exposed to domestic and dating violence, sexual assault and stalking.
The Office on Violence Against Women administers several youth focused grant programs established by the Violence Against Women Act. Through these grants, federal funds provide unique opportunities for communities to increase collaboration among victim service providers, children, youth, and men’s groups and schools to help teens understand healthy relationships. Through these partnerships, agencies can focus on educating the community, teens, and children about identifying the signs of abuse, and assist them in locating services if they or someone they know is experiencing a physically or emotionally abusive relationship.
Working to end violence in families and communities remains one of the highest priorities for the United States Attorney’s Office for the Northern District of Mississippi. Every year, millions of children and adolescents across the United States are victimized and exposed to violence in their homes and communities, and often suffer severe long-term emotional and physical consequences. When these problems remain unaddressed, children are at higher risk for school failure, substance abuse, repeat victimization, and, perhaps, most disturbingly, perpetrating violent behavior later in their own lives. It is our responsibility to address this serious issue and protect our children.
So on this Valentine’s Day, I encourage everybody, especially parents, to look beyond the roses and chocolate-filled hearts that your children may have exchanged and provide an environment to talk about healthy, violence-free relationships.
Tampa Woman Pleads Guilty to Providing Information for Tax FraudRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces that Ieshia Jordan (27, Tampa) pleaded guilty today to conspiracy and wrongful disclosure of health information. Jordan faces a maximum penalty of 5 years in federal prison for the conspiracy charge and up to 10 years in prison on the wrongful disclosure of health information charge.According to the plea agreement, Jordan stole identifying information of individuals, including names and social security numbers, from her former employer, Intermedix Corporation. Intermedix is a medical billing company that assists fire departments and emergency medical service providers across the county in billing for their medical services.
In September 2012, during the execution of search warrants at several locations, records from Intermedix were found. Intermedix traced the records back to Jordan. When interviewed by law enforcement, Jordan admitted that she accessed the records at her work place, without authorization, in order to generate the information needed to file fraudulent tax returns and obtain tax refunds. Jordan said she then gave the records to others to sell and use to file fraudulent tax returns. Jordan also stated she was paid for her role in the scheme.
This case was investigated by the Internal Revenue Service - Criminal Investigation, the Tampa Police Department, and the United States Postal Inspection Service. It is being prosecuted by Assistant United States Attorneys Sara C. Sweeney and Amanda L. Riedel.
Tampa Couple Arrested for Tax FraudRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces the unsealing of an indictment charging Jermell C. Hickman and Ebonie Hampton, both of Tampa, with one count of conspiracy, four counts of wire fraud, twelve counts of filing false claims, ten counts of theft of government property, and ten counts of aggravated identity theft. If convicted on all counts, each face a maximum penalty of 5 years in federal prison on the conspiracy charge, up to 20 years in prison for each wire fraud charge, up to 5 years imprisonment for each charge of filing false claims, and up to 10 years in prison for each offense of theft of government property, all of which to be followed by up to 2 years imprisonment for each count of aggravated identity theft. The Indictment also notifies both individuals that the United States is seeking a money judgment in the amount of $288,607.25, the proceeds of their scheme to defraud.
According to the indictment, Hickman and Hampton engaged in a conspiracy with each other, from at least as early as January 2012 through October 2012, to file fraudulent tax returns using stolen identity information of other individuals in order to obtain tax refunds.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service Criminal Investigation. It will be prosecuted by Assistant United States Attorney Sara C. Sweeney.
Summers County Man Sentenced to 4 Years in Federal Prison for Child PornographyRead the Press Release
Grimmett had more than 600 child-pornography pictures and videos on his computer
BECKLEY, W.Va. – U.S. Attorney Booth Goodwin today announced that a Summers County man was sentenced to four years prison followed by 15 years of supervised release for possession of child pornography. Alan L. Grimmett, 51, of Hinton, Summers County, W.Va., admitted that on June 7, 2011, he possessed on his computer more than 600 images and videos that revealed minors involved in sexual conduct. The defendant admitted that he knew the images and videos constituted child pornography. Grimmett further admitted that the images he possessed were downloaded using the Internet.
“Crimes that involve the exploitation of children are repulsive, plain and simple,” said U.S. Attorney Goodwin. “These types of cases have been a top priority for my office and we will continue to work tirelessly to ensure that the criminals are punished.”
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the West Virginia State Police Internet Crimes Against Children Task Force and the West Virginia State Police conducted the investigation. Assistant United States Attorney Lisa Johnston handled the prosecution. The sentence was imposed by United States District Judge Irene C. Berger.
Since January 2012, twenty-two defendants have been convicted as part of the U.S. Attorney’s Office’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia. Twelve defendants have been sentenced to a total of nearly 50 years in federal prison. The remaining ten defendants currently await sentencing.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/usao/wvs/PSCpage.html. For more information about internet safety education, please visit www.usdoj.gov/psc and follow the link named “Resources.”
Stephen Hickey of Warwick, R.I., Ordered Not to Have Contact with Minors, Including Students at Tri-County Regional Vocational Technical High School in Franklin, Mass.Read the Press Release
PROVIDENCE, R.I. – Stephen Hickey, 60, of Warwick, R.I., was released to home confinement with electronic monitoring on unsecured bond following an initial appearance in U.S. District Court in Providence today on a federal charge of possession of child pornography, announced United States Attorney Peter F. Neronha; Kevin M. Niland, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.
Hickey was arrested today by agents from the U.S. Postal Inspection Service and the Rhode Island Internet Crimes Against Children (ICAC) Task Force after, according to an affidavit in support of a criminal complaint filed with the court, a court authorized search of Hickey’s home resulted in the seizure of a computer which allegedly contains images of child pornography.
In addition, according to the affidavit, Hickey allegedly told investigators that he previously ordered and received DVDs containing child pornography, but destroyed them upon learning that another individual had been arrested for allegedly receiving similar products from the same company.
As a condition of his release , Hickey was ordered by U.S. District Court Magistrate Judge Lincoln D. Almond to have no contact with minors, including students at Tri-County Regional Vocational Technical High School in Franklin, Mass., where he is employed as a teacher.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Possession of child pornography is punishable by a maximum sentence of up to 10 years in federal prison followed by up to 3 years supervised release.
The case is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly, with the assistance of Assistant U.S. Attorneys Adi Goldstein and Lee H. Vilker.
The ICAC Task Force is a Department of Justice grant-funded program administered by the state police, and is comprised of detectives from the Rhode Island State Police, Providence, West Warwick, Coventry, Warwick, Johnston, and Pawtucket Police Departments, and federal agents from ICE-HSI, United States Postal Inspectors’ Office, and United States Naval Criminal Investigative Service. The objective of the ICAC Task Force is to form strong working relationships among federal, state and local law enforcement in order to effectively and efficiently prevent, detect, investigate, and prosecute online child exploitation and child pornography crimes.
This case is being brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Contact: 401-709-5357
[email protected]St. Francis Man Pleads Guilty to Assault ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that Jeffrey Curry, age 29, of St. Francis, South Dakota, appeared before U.S. District Judge Roberto A. Lange on February 12, 2013 and pled guilty to Assaulting, Resisting, Opposing and Impeding a Federal Officer. The maximum penalty upon conviction is 20 years in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 special assessment.
The conviction stems from an incident that took place on July 22, 2012 when Curry’s vehicle was being pursued by officers. Curry drove his vehicle at an officer’s vehicle, which caused the officer’s vehicle to leave the roadway to avoid being hit. Curry used similar driving behaviors to force other officers and at least one citizen to take evasive action to avoid Curry’s vehicle.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Tim Maher.
A presentence investigation was ordered and a sentencing date was set for May 7, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Santa Rosa Man Pleads Guilty to Wire Fraud, Money LaunderingRead the Press Release
SAN FRANCISCO - Douglas Dean Hollingsworth (aka Doug Hollingsworth) pleaded guilty in federal court in San Francisco yesterday to wire fraud and money laundering, United States Attorney Melinda Haag announced.
In pleading guilty, Hollingsworth admitted that from approximately June 2007 through approximately October 2012, he solicited money from numerous individuals by falsely representing that his business entities, Baytree Investors, Inc., and Capsule Partners, LLC, had developed a sophisticated computer system that permitted him to identify financial market trends and generate substantial profits from trading activity. Hollingsworth admitted that in soliciting money from the victims, he falsely stated that if they loaned him money, he could pay them significant monthly interest payments from the profits earned from successful trading activity. Hollingsworth, however, intentionally failed to tell some individuals from whom he solicited money that the Federal Bureau of Investigation had searched his residence in July 2010 and that he had been charged with wire fraud in August 2011. Hollingsworth admitted that he did not use the money received from the victims to engage in trading but instead spent the money on personal expenses (including, for example, purchasing jewelry) and to make monthly interest payments to other individuals who had provided him with money. Hollingsworth agreed that as a result of his scheme, he caused losses in an amount between $4 million and $7 million. In the plea agreement, Hollingsworth also agreed to forfeit approximately $80,000 that was in bank accounts seized in July 2010 during the course of the investigation. The defendant also agreed to pay restitution in an amount to be determined by the Court, but not less than $3 million.
Hollingsworth, 64, of Santa Rosa, Calif., was originally indicted by a federal grand jury on Aug. 16, 2011. On Aug. 28, 2012, and Dec. 18, 2012, the grand jury returned superseding indictments against Hollingsworth. In the most recent indictment, Hollingsworth was charged with two counts of mail fraud, in violation of 18 U.S.C. § 1341, 21 counts of wire fraud, in violation of 18 U.S.C. § 1343, and four counts of money laundering, in violation of 18 U.S.C. § 1957. Under the plea agreement, Hollingsworth pled guilty to one count of wire fraud and one count of money laundering.
The sentencing of Hollingsworth is scheduled for July 17, 2013, before Judge Charles R. Breyer in San Francisco. The maximum statutory penalty for wire fraud, in violation of 18 U.S.C. § 1343, is 20 years in prison and a fine of $250,000 or twice the gain or loss from the offense conduct, and restitution. The maximum statutory penalty for money laundering, in violation of 18 U.S.C. § 1957, is 10 years in prison and a fine of $250,000 or twice the gain or loss from the offense conduct, and restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Denise Marie Barton and Tracie L. Brown are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Denise Oki, Rayneisha Booth, and Elizabeth Garcia. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
(Hollingsworth Plea Agreement )
Rapid City Woman Arraigned on Assault ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota woman has been indicted by a federal grand jury for Assault With a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Raylene C. Chips, a/k/a Raelene C. Chips, a/k/a Raelene C. Chipps, age 23, was indicted by a federal grand jury on October 16, 2012. She appeared before U.S. Magistrate Judge Mark A. Moreno on February 11, 2013 and pled not guilty to the indictment. The maximum penalty on each count upon conviction is 10 years' imprisonment, a $250,000 fine or both and a period of supervised release of 3 years. The charges are merely accusations and the Defendant is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Troy Morley is prosecuting the case. Chipps was released on bond pending trial. A trial date has not been set.