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22 January 2013
Washington Man Sentenced to Ten Years for Sex TraffickingRead the Press Release
WASHINGTON – Joseph McDaniels, 43, of Shoreline, Wash., was sentenced today in U.S. District Court for interstate transportation of a 22 year old woman for purposes of prostitution. Judge James L. Robart sentenced McDaniels to 10 years in prison followed by three years of supervised release. Requirements during the supervised release include registration under the Sex Offender Registration and Notification Act, sexual deviancy evaluation and treatment, restrictions and monitoring of his use of computers and restrictions on contact with minors.
On Sept. 28, 2012 McDaniels pleaded guilty to interstate transportation for prostitution. The indictment alleged that between August 2011 and April 2012, McDaniels compelled the woman to engage in commercial sex acts through force, fraud and coercion and that McDaniels transported her between Washington state and Oregon for purposes of prostitution.According to court filings, McDaniels is a registered sex offender and had completed serving a 15-year sentence for a series of robberies in the mid-1990’s when he was released from state prison in early 2011. Only a few months later, McDaniels met and recruited the woman, preying upon her youth and drug addiction to coerce her into engaging in acts of prostitution.
According to court documents, McDaniels advertised the woman on Backpage.com, transported her to prostitution dates, took all of her money and supplied her with drugs. He threatened to harm her and her family, and in December 2011, McDaniels was arrested and later convicted in state court for assaulting the woman. He was arrested again in May 2012 after he had taken her to Portland, Ore., for prostitution, and then attempted to have the woman withdraw a state-issued no contact order against him.
“The exploitation and sexual abuse of a vulnerable young woman is intolerable and the Justice Department will continue to prosecute and seek justice for victims of such abhorrent crimes,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division.“We will continue our battle against human trafficking in western Washington,” said U.S. Attorney for the District of Washington Jenny A. Durkan. “We are fortunate to have committed local, state and federal officers working together to find and stop sexual predators like the defendant. Today the court ensured that other young women will not be exploited by him.”
The FBI’s Innocence Lost Task Force provides a rapid and effective investigative response to reported federal crimes involving the victimization of children. The task force strives to reduce the vulnerability of children to acts of sexual exploitation and abuse and strengthens the capabilities of federal, state and local law enforcement through training programs and investigative assistance.
This case was investigated by the Kent Police Department, Auburn Police Department, and the FBI’s Innocence Lost Task Force, and prosecuted by Assistant U.S. Attorney Ye-Ting Woo and Trial Attorney Daniel H. Weiss of the Civil Rights Division’s Human Trafficking Prosecution Unit.Vermilion Woman Sentenced to Five Months in Prison for Tax ViolationsRead the Press Release
Terry E. Branco was sentenced today to five months imprisonment for corruptly endeavoring to obstruct and impede the due administration of the federal tax laws, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The sentence was imposed in Cleveland by United States District Judge James S. Gwin, who also ordered Branco to pay restitution of unpaid taxes totaling $47,475 for the years 2004 through 2007.
According to court records, Branco is 65 years old and resides in Vermilion, Ohio.
Branco previously pleaded guilty to an Information pursuant to a written plea agreement which described her course of conduct over several years, including the following. For tax years 2004 through 2007, Branco filed frivolous and false U.S. individual tax returns in which she stated that her total adjusted gross income for each year was zero dollars ($0). Her actual total adjusted gross income was $109,403, $87,440, $93,277 and $113,845 for the 2004, 2005, 2006 and 2007 tax years, respectively.
Branco also signed a form in 2006 on which she falsely claimed she was not a resident of the United States. In 2008, following an IRS audit and assessment of taxes owed, Branco sent a purported “commercial affidavit” to the IRS claiming that the IRS was not an agency of the United States, was “perpetuating a fraud,” and was “not licensed to do business.” She also stated that failure to rebut the affidavit would result in the “filing of a commercial lien, involuntary bankruptcy and/or tort claim.” Branco then filed a Notice of Default and Affidavit of Notice with a county recorder in Utah, reflecting an intent to encumber real estate owned by an IRS employee whose name was on notices sent to her by the IRS, according to the plea agreement.
The case was handled by Tax Division Trial Attorney Andrew P. Young and Assistant U.S. Attorney John M. Siegel, following investigation by the Internal Revenue Service - Criminal Investigation, Akron, Ohio, and the Treasury Inspector General for Tax Administration, Cleveland, Ohio.
United States Attorney's Office in Conjunction with Royal Oak Public Schools Welcome the Detroit Tigers Winter Caravan to Hold A Forum on Anti-Bullying “Strike Out Bullying - Strategies for Protecting Your Child“Read the Press Release
The United States Attorney's Office, along with Royal Oak Public Schools join the Detroit Tigers Winter Caravan in an effort to increase awareness about bullying prevention. The Detroit Tigers’ “Strike Out Bullying” initiative in partnership with the Detroit Newspapers In Education, the Department of Justice’s Anti-Bullying Prevention initiative as well as the Royal Oak Schools’ prevention efforts aim to bring attention to the widespread and often underreported problem of bullying in schools.
Bullying creates a climate of fear in schools, playgrounds and neighborhoods. Victims of bullying suffer from a wide range of psychological and school-related problems including depression, anxiety, low self-esteem and even suicide. One of the key components critical to the success of any anti-bullying effort is community outreach. In an effort to bring law enforcement and the community together to discuss this very important issue, a town hall meeting entitled "Strike Out Bullying - Strategies for Protecting Your Child" will be held at Royal Oak Middle School, 709 N. Washington Avenue, Royal Oak, Michigan 48067 on Thursday, January 24, 2013, from 5:00 p.m. until 6:15 p.m. Royal Oak Schools Superintendent Shawn Lewis-Lakin has graciously offered to host the town hall and United States Attorney Barbara McQuade along with Fox Sports Detroit broadcaster Mario Impemba will moderate the event.
Highlighted speakers will include Barbara L. McQuade, United States Attorney, FBI Special Agent in Charge Robert D. Foley, III and 2012 American League Champions Alex Avila and Phil Coke. Avila and Coke a will speak about bullying and how children can root out this serious problem.
United States Attorney McQuade stated, "Preventing bullying, both online and in person, is part of our violent crime reduction strategy. We do not accept that subjecting children to harassment and intimidation is a necessary part of growing up. Instead, we want to give children strategies for dealing with bullying so that they can be successful students."FBI Special Agent in Charge Foley stated, "Raising awareness about the dangers of bullying and intimidation in schools is a crucial part of the FBI's anti-bullying philosophy. Our goal is to educate students about the importance of stopping bullying and supporting a safe and friendly environment for learning. The FBI is committed to working together to ensure students make healthy choices and continue to respect one another's differences."
Royal Oak Schools Superintendent Lewis-Lakin stated, "Royal Oak Schools strives to be a community of excellence, a place where all students experience success. We welcome opportunities to work collaboratively in private and public partnerships on initiatives that address critical student needs. We welcome this opportunity to work together with the Detroit Tigers and the U.S. Attorney's Office on making our schools positive, safe, bully-free zones for student success."
This is a free, ticketed event however, tickets are no longer available. The event is open to the media. If you have any questions, please contact Gina Balaya, Public Information Officer, United States Attorney’s Office at [email protected] or call (313) 226-9758.
Two Sentenced for Transportation and Attempted Sale of Stolen Matisse PaintingRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced today’s sentencing of Pedro Antonio Marcuello Guzman, 46, of Miami, Florida, and Maria Martha Elisa Ornelas Lazo, 50, of Mexico City, Mexico, on charges relating to the July 17, 2012 interstate transportation and attempted sale of the stolen Henri Matisse painting, “Odalisque in Red Pants,” in Miami Beach, Florida.
At today’s hearing, U.S. District Judge Donald M. Middlebrooks sentenced Pedro Marcuello to 33 months in prison, to be followed by three years of supervised release. Maria Ornelas was sentenced to 21 months in prison, to be followed by three years supervised release. The defendants pled guilty on October 30, 2012 to charges relating to the transportation, possession and attempted sale of the stolen Henri Matisse painting.
According to court documents, between December 2011 and July 13, 2012, Marcuello, in a series of meetings with undercover agents of the FBI, negotiated the sale of an original Henri Matisse painting entitled “Odalisque in Red Pants,” which had been stolen from the Caracas Museum of Contemporary Art in Caracas, Venezuela, around December 2002. During these meetings, Marcuello agreed to sell the stolen painting to the undercover agents for approximately $740,000.00, and also agreed to have the painting transported by courier to the United States from Mexico, where the painting was stored. The courier was identified by Marcuello as co-defendant Ornelas. Thereafter, on July 16, 2012, Ornelas transported the stolen Matisse painting to Miami from Mexico City. According to court documents, the following day both Marcuello and Ornelas produced the Matisse painting titled “Odalisque in Red Pants” to undercover agents as part of the purported sales transaction. At the time of the purported sales transaction, both Marcuello and Ornelas knew the Matisse painting had been stolen.
Mr. Ferrer commended the investigative efforts of the FBI. Mr. Ferrer would also like to thank the FBI Legal Attaché in Caracas and Paris, the Department of Justice Office of International Affairs, and the Department of Justice Attaché in Paris. The case was prosecuted by Assistant U.S. Attorney Elisa Castrolugo.
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.
Three Men Charged with Hate Crime for Attack on African American Woman and White Man in CaliforniaRead the Press Release
Billy James Hammett, 28, and Perry Sylvester Jackson, 27, were arrested today in Yuba County, Calif., on federal hate crime charges for their racially motivated attack on an African American woman and white man in Marysville, Calif., on April 18, 2011. A third defendant, Anthony Merrell Tyler, 32, has turned himself in to authorities in Sacramento, Calif.
The defendants were charged in a three-count indictment returned by a federal grand jury in the Eastern District of California and unsealed today. They are charged with one count of conspiracy and two counts of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act. The Shepard-Byrd Act criminalizes certain acts of physical violence causing bodily injury motivated by any person’s actual or perceived race, color, national origin, religion, sexual orientation, gender, gender identity or disability.
The indictment alleges that when an African American woman accompanied by a white male drove into the parking lot of a convenience store, Jackson shouted a racial epithet at the male. Hammett then approached the driver’s side of the car, using a racial epithet to refer to the African American driver, while Jackson and Tyler attacked from the other side of the car. The indictment further alleges that Hammett and Jackson punched and kicked the African American woman driver and white male passenger and that Tyler smashed the car windshield with a crowbar and used racial epithets again.
If convicted, the defendants could face a maximum sentence of five years in prison and a fine of $250,000 on the conspiracy charge, and 10 years in prison and a fine of $250,000 on each of the two hate-crime charges.
This case is being investigated by the FBI. The case is being prosecuted by Assistant U.S. Attorney R. Steven Lapham for the Eastern District of California and Trial Attorney Chiraag Bains from the Justice Department’s Civil Rights Division.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
Social Worker Indicted for Health Care FraudRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Buffalo has returned a five-count indictment charging Nina Jafari, a licensed clinical social worker, 62, of Amherst, N.Y., with health care fraud. The charge carries a maximum penalty of 10 years years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Michael DiGiacomo, who is handling the case, stated that according to the indictment, the defendant defrauded Blue Cross Blue Shield of Western New York. The scheme involved Jafari submitting reimbursement claim forms to Blue Cross Blue Shield for services that were not rendered. The amount totaled approximately $125,000.
The indictment is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Christopher M. Piehota.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Sioux Falls Man Sentenced for Great Western Bank RobberyRead the Press Release
US Attorney Brendan V. Johnson announced that a Sioux Falls man charged with bank robbery was sentenced on January 18, 2013, by US District Judge Karen E. Schreier. Alvione Anthony Jones, age 22, was sentenced to 70 months in custody and ordered to pay over $1,600 in restitution.
Jones was indicted for bank robbery by a federal grand jury on July 10, 2012. In June of 2012, the bank manager for the Great Western Bank, located at North Sycamore Avenue in Sioux Falls, arrived at the bank and prepared to open the bank for business. In the parking lot of the bank, Alvione Anthony Jones approached him. After some conversation, Jones displayed what appeared to be a black handgun. He then forced the manager into the bank and directed him to open the bank safe. The safe was opened, and Jones received over $60,000 in various US denominations. Jones then fled the scene. Law enforcement later located Jones in his apartment where they found various items that were used in the robbery. Jones was interviewed and admitted his participation in the robbery of the Great Western Bank. He pled guilty to bank robbery on October 29, 2012.
This case was investigated by the Sioux Falls Police Department and the FBI. Assistant US Attorney Dennis R. Holmes prosecuted the case.
Jones was immediately turned over to the custody of the US Marshal.
Second Fort Deposit, Ala., Officer Sentenced to 37 Months in Prison for Federal Civil Rights Violations in Connection with Thefts on HighwayRead the Press Release
Former Fort Deposit, Ala., police officer Carlos Tyson Bennett, 37, was sentenced today by U.S. District Judge Mark Fuller to 37 months in prison, two years of supervised release and ordered to pay $500 in restitution. Bennett was sentenced for stealing money from motorists during traffic stops, with another former Fort Deposit police officer, Jessie Alan Fuller, on Interstate 65 in 2009.
Bennett pleaded guilty on Aug. 29, 2012, to one count of conspiracy against rights and four counts of deprivation of rights under color of law. During his plea, Bennett admitted that he and Fuller conspired to pull over vehicles under the guise of legitimate law enforcement activity and to steal cash from drivers and passengers in violation of their Fourth Amendment rights. Bennett acknowledged that he and Fuller worked together, acting with each other’s knowledge and cooperation and typically sharing the stolen money. In May and June 2009, Bennett committed four specific thefts, taking between $100 and $200 per victim. Bennett further acknowledged that he and Fuller tried to cover up their conspiracy when authorities began to investigate.
Fuller previously pleaded guilty to conspiracy and one count of deprivation of rights under color of law. He was sentenced to 37 months in prison on Aug. 28, 2012.
“This defendant betrayed the public trust when he took advantage of his position of authority to steal from those he pledged to serve,” said Thomas E. Perez, Assistant Attorney General for Civil Rights Division. “The Department of Justice is committed to prosecuting those who abuse their authority and violate the Constitution.”
“Police officers are here to protect public, not exploit the public,” stated U.S. Attorney George L. Beck Jr. “When law enforcement officers take advantage of people they are supposed to be serving, they must be punished. This case shows that my office will continue to do everything under law to protect public from criminals, even when the criminal is a law enforcement officer.”
This case was investigated by the Alabama Bureau of Investigation; the Butler County, Ala., Sheriff’s Office; and the Lowndes County, Ala., Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Gray Borden for the Middle District of Alabama and Trial Attorney Chiraag Bains from the Justice Department’s Civil Rights Division.
Second Fort Deposit, Ala., Officer Sentenced to 37 Months for Federal Civil Rights Violations in Connection with Thefts on HighwayRead the Press Release
Montgomery, Alabama - Former Fort Deposit, Ala., police officer Carlos Tyson Bennett, 37, was sentenced today by U.S. District Judge Mark Fuller to 37 months in prison, two years of supervised release and ordered to pay $500 in restitution. Bennett was sentenced for stealing money from motorists during traffic stops, with another former Fort Deposit police officer, Jessie Alan Fuller, on Interstate 65 in 2009.
Bennett pleaded guilty on Aug. 29, 2012, to one count of conspiracy against rights and four counts of deprivation of rights under color of law. During his plea, Bennett admitted that he and Fuller pulled over vehicles under the guise of legitimate law enforcement activity and stole cash from drivers and passengers in violation of their Fourth Amendment rights. Bennett acknowledged that he and Fuller worked together, cooperating with each other, and typically sharing the stolen money. In May and June 2009, Bennett committed four specific thefts, taking between $100 and $200 per victim. Bennett further acknowledged that he and Fuller tried to cover up their crimes when authorities began to investigate.
Fuller previously pleaded guilty to conspiracy and one count of deprivation of rights under color of law. He was sentenced to 37 months in prison on Aug. 28, 2012.
“This defendant betrayed the public trust when he took advantage of his position of authority to steal from those he pledged to serve,” said Thomas E. Perez, Assistant Attorney General for Civil Rights Division. “The Department of Justice is committed to prosecuting those who abuse their authority and violate the Constitution.”
“Police officers are here to protect public, not exploit the public,” stated U.S. Attorney George L. Beck, Jr.. “When law enforcement officers take advantage of people they are supposed to be serving, they must be punished. This case shows that my office will continue to do everything under law to protect public from criminals, even when the criminal is a law enforcement officer.”
This case was investigated by the Alabama Bureau of Investigation; the Butler County, Ala., Sheriff’s Office; and the Lowndes County, Ala., Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Gray Borden for the Middle District of Alabama and Trial Attorney Chiraag Bains from the Justice Department’s Civil Rights Division.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Sean Dennis Pleads Guilty to Fraudulently Issuing Postal Money OrdersRead the Press Release
KNOXVILLE, Tenn. - Sean Thomas Dennis, 29, formerly of La Follette, Tenn., pleaded guilty on Jan. 18, 2013, in the U.S. District Court for the Eastern District of Tennessee at Knoxville, to an indictment charging him with fraudulently issuing U.S. Postal Money Orders. Sentencing has been set for 10:30 a.m., Apr. 8, 2013, before the Honorable Thomas W. Phillips, U.S. District Judge.
In conjunction with his guilty plea, Dennis, a former U.S. Postal Service employee, admitted to issuing money orders without having first receiving or paying the full amount required for their issuance. Between October 2010 through January 2011, Dennis embezzled $32,096.21 from the U.S. Postal Service by fraudulently issuing 43 money orders. He told federal investigators that committed these acts to obtain money to finance his drug addiction.
This conviction was the result of an investigation by the United States Postal Service, Office of Inspector General. Assistant U.S. Attorney Frank M. Dale, Jr. represented the United States.
San Francisco International Airport Passenger Pleads Guilty to Smuggling CocaineRead the Press Release
SAN FRANCISCO – Emmanuel Amankwa, a passenger who was transiting San Francisco International Airport (SFO) on his way out of the country, pleaded guilty last week to possessing with the intent to distribute 500 grams or more of cocaine, United States Attorney Melinda Haag announced.
Amankwa was arrested on Oct. 23, 2012, at SFO while attempting to board a flight to Japan. A subsequent investigation by officers from the U.S. Customs and Border Patrol and agents from U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) revealed that Amankwa was carrying 995 grams of cocaine in 100 latex-wrapped pellets inside his body. Amankwa was attempting to smuggle the cocaine into Japan.
Amankwa was charged by complaint on Oct. 23, 2012. A federal grand jury returned a one-count indictment on Nov. 8, 2012. He pleaded guilty on Jan. 17, 2012.
Under the terms of a plea agreement between the government and Amankwa, Amankwa faces a sentence of 60 to 80 months in federal prison, followed by four years of supervised release. He also must pay $16,178 in restitution for the medical costs associated with collecting the cocaine pellets he had ingested. Notwithstanding this agreement, the court will determine and impose a sentence on Amankwa after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
U.S. District Judge Jeffrey S. White is scheduled to impose sentence on April 11, 2013.
(Amankwa Indictment )
Removed Alien Charged with Unlawfully Re-entering U.S.Read the Press Release
PITTSBURGH - A citizen of Mexico has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal immigration laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Pedro Armando Castro, 57, of Mexico, as the sole defendant.
According to the indictment, on or about Sept. 23, 2012, Castro was found at the Westmoreland County Prison in Greensburg, Pa., after having unlawfully re-entered the United States following removal on or about Oct. 24, 2002.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
United States Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Provider of Home Health Care Services Sentenced for Medicaid FraudRead the Press Release
NORFOLK, Va. – Janice W. Holland, 42, of Suffolk, Va., was sentenced today to 51 months in prison for health care fraud and alteration of records, and a mandatory consecutive sentence of 24 months in prison for aggravated identity theft, for a total sentence of 75 months. She was also ordered to pay restitution to the Virginia Medicaid program in the amount of $630,339.30.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Virginia Attorney General Ken Cuccinelli made the announcement after sentencing by Senior United States District Judge Robert G. Doumar.
Holland pled guilty on September 18, 2012. According to court documents, Holland owned and operated A Caring Hand Home Health Care Services Inc., a business located in Suffolk that was authorized to provide respite care to Medicaid recipients. Respite care is designed to provide temporary, substitute care for a Medicaid recipient that is normally provided by the family or another unpaid primary caregiver of the recipient. These services are provided on a short-term basis because of the emergency absence or need for routine or periodic relief of the primary caregiver. Between January 2008 and October 2011, Holland filed approximately 939 false and fraudulent claims with the Virginia Medicaid program, representing that respite care had been provided by her company to 30 Medicaid recipients, when in fact no such care had been provided. She filed these claims using, without authority, the recipients’ names, dates of birth and Medicaid identification numbers. As a result, Holland obtained health care benefit payments in the approximate amount of $630,339.30, to which she was not entitled. She also altered and falsified her office records to conceal and cover up her false billings.
This case was investigated by the FBI and the Office of the Virginia Attorney General, Medicaid Fraud Control Unit. Assistant United States Attorney Alan M. Salsbury and Special Assistant United States Attorney David W. Tooker prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Previously Convicted Child Pornographer Sentenced to 10 Years in Prison for Possessing Child PornographyRead the Press Release
Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Otha Royal Palmer, age 58, of Hagerstown, Maryland, today to 10 years in prison, followed by lifetime supervised release for possession of child pornography. Judge Bennett ordered that upon his release from prison, Palmer must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to the plea agreement, Palmer has two previous child pornography convictions, including a 2001 federal conviction for interstate transportation of child pornography, and was registered as a sex offender.
In the fall of 2011, law enforcement learned that Palmer was accessing and posting comments about child pornography, including his preference for four to seven year old girls, on an internet website. On December 20, 2011, law enforcement executed a search warrant at Palmer’s residence and seized his desktop computer. A subsequent forensic examination of the computer revealed over 600 images of children, including children under the age of 12, engaged in sexually explicit conduct.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing and abused children.
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 "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI and the Maryland Child Exploitation Task Force for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Antonio J. Reynolds and Michael C. Hanlon, who prosecuted the case.
Pharr Man Handed Sentenced for Involvement in Straw Purchase of FirearmsRead the Press Release
McALLEN, Texas – Alejandro Mendoza, 19, of Pharr, has been handed a federal prison sentence for making false statements in the acquisition of firearms from Federal Firearms Licensees (FFL), commonly known as straw purchasing, United States Attorney Kenneth Magidson announced today along with Melvin King, special agent in charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Mendoza pleaded guilty Aug. 31, 2012.
Today, U.S. District Judge Randy Crane handed him a 30-month-term of imprisonment to be followed by two years of supervised release.
In July 2012, ATF agents discovered information regarding several firearms purchases made by Mendoza. Subsequent investigation determined he had, in fact, purchased four AK-47 rifles. He admitted he provided false information on ATF forms that the firearms were purchased for himself, when he knew they were actually for another individual.
Previously released on bond, Mendoza was permitted to remain on bond and was ordered to voluntarily surrender to a U.S. Bureau of Prisons facility Feb. 11, 2013.
The investigation was conducted by the ATF. Assistant United States Attorney Juan Villescas prosecuted the case.
Parmelee Man Arraigned on Sexual Assault ChargeRead the Press Release
U.S. Attorney Brendan V. Johnson announced that a Parmelee man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child.
Randy Never Misses A Shot, age 48, was indicted by a federal grand jury on January 16, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 18, 2013, and pled not guilty to the indictment. The maximum penalty upon conviction is any term of years up to life imprisonment, a $250,000 fine or both. The charge is merely an accusation, and Never Misses A Shot is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy Morley is prosecuting the case. Never Misses A Shot was remanded to the custody of the U.S. Marshal. A trial date has not yet been set.
Notorious Lawrence Gang Member Pleads Guilty to Illegal Firearm PossessionRead the Press Release
BOSTON - A Lawrence gang member pleaded guilty today to illegally possessing a firearm and 84 rounds of ammunition.
Orlando Valle, 26, pleaded guilty to being a felon in possession of a firearm and ammunition before U.S. District Judge Nathaniel M. Gorton. The maximum sentence under the statute is 10 years in prison, to be followed by up to three years of supervised release and a fine of up to $250,000. Sentencing is scheduled for April 30, 2013.
On Nov. 21, 2011, troopers with the Massachusetts State Police, detectives with the Lawrence Police Department, and an agent from the Bureau of Alcohol, Tobacco, Firearms, and Explosives went to 282 Farnham Street in Lawrence to arrest Valle on an outstanding warrant. In the process of arresting Valle, one of the officers saw a black handgun on a heater in the defendant’s bedroom. Lawrence detectives obtained a search warrant and seized a .22 caliber firearm; 84 rounds of .22 caliber ammunition; mail, bills, and other documents showing Valle lived in the apartment; a written constitution for the Immortal Outlaws street gang; and several cellular telephones. Lawrence detectives later recovered several photographs of Valle holding firearms, including a photograph of Valle holding what appeared to be the gun found in his bedroom. The Lawrence Police Department had previously identified Valle as a member of the Immortal Outlaws, a violent street gang operating in Lawrence and elsewhere.“This conviction should send a clear message that law enforcement officials are working together, and are focused on violent offenders and firearm crime,” said U.S. Attorney Carmen M. Ortiz. “I commend the investigators and prosecutors whose persistence and hard work resulted in the removal of a known gang member from the streets of Lawrence.”
Chief John Romero of the Lawrence Police Department said, “This conviction of a well-known Lawrence gang member will send a strong message: we will not tolerate illegal gun possession and gun violence in Lawrence. We will continue to work to end gun violence in Lawrence by targeting those who possess, sell, and or use illegal guns.”
The case against Valle commenced with state charges brought by Essex County District Attorney Jonathan Blodgett following Valle’s arrest in Lawrence and was then referred for federal prosecution.
This case was one of several federal prosecutions brought in the past year targeting violent crime in Lawrence committed by gang members, armed kidnapping and home invasion crews, large-scale drug traffickers, and others. These cases have been investigated by a working group of federal and state law enforcement agencies, including the FBI, ATF, the Drug Enforcement Administration (DEA), the Massachusetts State Police, the Lawrence Police Department, and others.
U.S. Attorney Ortiz; Guy Thomas, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Boston Field Division; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Chief Romero of the Lawrence Police Department, made the announcement today. This case is being prosecuted by Christopher Pohl of Ortiz’s Organized Crime Strike Force Unit.Northwood Man Found Guilty of Copyright Violation Related to Video GamesRead the Press Release
A jury returned a guilty verdict against Jeffrey J. Reichert, age 27, of Northwood, Ohio, in connection with a oneicount indictment that charged him with violating the Digital Millennium Copyright Act, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charged that the defendant knowingly manufactured, imported, offered to the public, or otherwise trafficked in technology, products, services, devices, components or parts thereof, which were primarily designed to circumvent technological measures designed to effectively control access to a work copyrighted under Title 17 of the United States Code, for purposes of commercial advantage or private financial gain. Specifically, the defendant was charged with trafficking in modification chips (also known as “Mod Chips”) which are primarily designed to circumvent the technological measures designed into video game consoles (such as the Nintendo Wii) to prevent access to copyrighted works.
The defendant will be sentenced by U.S. District Judge Donald C. Nugent on March 26, 2013, after the completion of a presentence investigation by the U.S. Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Robert W. Kern and Chelsea Rice of the Cleveland U.S. Attorney’s Office, following an investigation by the Cleveland Office of the Department of Homeland Security, Immigration and Customs Enforcement (ICE).
Nebraska Man Sentenced for AssaultRead the Press Release
US Attorney Brendan V. Johnson announced that a Valentine, Nebraska, man convicted of Assaulting a Federal Officer was sentenced on January 17, 2013, by US District Judge Roberto A. Lange. Blake Bordeaux, age 22, was sentenced to 148 days in custody with credit for time served and $25 to the Victim Assistance Fund.
The conviction stems from an incident that took place on August 27, 2011, when Bordeaux assaulted a federal officer.
The investigation was conducted by Rosebud Sioux Tribe Law Enforcement Services. Assistant United States Attorney Marie H. Ruettgers prosecuted the case.
Bordeaux was immediately turned over to the custody of the US Marshal.
Murder Charges Added for 2011 New Year Day Robbery and Killing on Red Lake Indian ReservationRead the Press Release
MINNEAPOLIS—A federal superseding indictment unsealed earlier today charges a previously indicted man with murder in connection to the deaths of a couple on the Red Lake Indian Reservation on New Year’s Day 2011. Twenty-one-year-old Kevin John Needham, previously charged with one count of robbery, has now also been charged with two counts of murder in the first degree and two counts of murder in the second degree. The superseding indictment, originally filed under seal on January 15, 2013, was unsealed today, after Needham’s initial court appearance on the murder charges.
The charges against Needham’s four co-defendants remain unchanged. All four were indicted on two counts of murder in the first degree, two counts of murder in the second degree, and one count of robbery. The four co-defendants include Geshik-O-Binese Martin, age 30; Edward McCabe Robinson, age 28; David John Martin, age 46, of Columbia Heights; and George Allen Martin, age 24, of Red Lake. All four are in federal custody.
The original indictment alleges that on January 1, 2011, Needham, Robinson, and the Martins killed Craig David Roy and Darla Ann Beaulieu while stealing money and illegal drugs from Roy’s reservation residence. The bodies of Beaulieu and Roy were found in the remains of the house, which was destroyed by fire on that day. Autopsies determined that both victims were killed as a result of multiple stab wounds and not the fire itself.If convicted of murder, Needham, Robinson, and the Martins face potential maximum penalties of life in federal prison. They also face a potential maximum penalty of 15 years in federal prison on the robbery charge. Because the federal criminal justice system does not have parole, convicted offenders spend virtually their entire prison sentences behind bars. Of course, actual sentences are determined by federal district court judges.
This case is the result of an investigation by the Federal Bureau of Investigation and the Red Lake Tribal Police Department, with assistance from the Minnesota Bureau of Criminal Apprehension and the State Fire Marshal. It is being prosecuted by Assistant United States Attorneys Deidre Y. Aanstad and Nathan P. Petterson.
Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Minneapolis Felon Sentenced for Possessing A .32-caliber PistolRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 34-year-old Minneapolis felon was sentenced for possessing a .32-caliber pistol. United States District Court Judge Joan N. Ericksen sentenced Bryant Duane Griffin to 240 months in prison on one count of being a felon in possession of a firearm. Griffin was indicted on May 15, 2012, and was convicted on September 14, 2012.
The evidence presented at trial proved that on March 25, 2012, Griffin possessed the gun while on a Metro Transit bus. On that date, police received a call at approximately 1:00 a.m. The caller reported that a man with a gun was riding a city bus. Officers located the bus and the man. He was later identified as Griffin. They found the gun under a seat in front of him.
Because he is a felon, Griffin is prohibited under federal law from possessing a firearm at any time. His prior Hennepin County convictions include fifth-degree possession of a controlled substance (1999) and attempted terroristic threats (2001). In addition, he was convicted of second-degree sale of a controlled substance in Stearns County (2008) and third-degree sale of a controlled substance in Benton County (2008). Since three of those prior offenses were crimes of violence or major drug crimes, Griffin was subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in federal prison. Since the federal criminal justice system does not have parole, Griffin will serve virtually his entire sentence behind bars.
This case was the result of an investigation by the Brooklyn Park Police Department, the Metro Transit Police Department, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorneys John E. Kokkinen, Kimberly A. Svendsen, and Surya Saxena.Man Indicted for Illegal ReentryRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a grand jury returned a one-count indictment charging Audiel Sanchez-Colin, 37, with illegally reentering the United States following his deportation.
The indictment alleges that Sanchez-Colin was previously removed or deported from the United States to Mexico on February 22, 2008, and October 7, 2009.
If convicted, the defendant’s sentence will be determined by the Court after 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 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 prosecuted by Assistant U.S. Attorney Phillip J. Tripi, following investigation by agents of the U.S. 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.
Las Vegas Man sentenced to prison for interstate travel to promote prostituutionRead the Press Release
Anchorage, Alaska B U.S. Attorney Karen L. Loeffler announced today that a man from Las Vegas was sentenced in federal court in Anchorage for one count of Interstate Travel to Promote Prostitution. Brandon Michael Gadson traveled to Anchorage in July of 2010, with three women, the youngest of whom was 19 years old, and another man for the purpose of trafficking the women on the internet. After arriving, Gadson paid for the hotel rooms for two of the women, and his credit card was used to post explicit advertisements on the internet that the women were available for commercial sex acts. The Vice Squad of the Anchorage Police Department conducted a “sting” operation and Detectives with that unit arrested the three women in less than an hour from the start of the operation. When arrested, Gadson had approximately $10,000 in his pocket, but the three women had only insignificant amounts of cash in their possession.
Gadson, 32, of Las Vegas, Nevada, was sentenced January 18, 2013, by United States District Court Judge Sharon M. Gleason, to 18 months in prison, to be followed by three years of supervised release. During his period of supervised release, Gadson is restricted from use of the internet without his probation officer’s permission. The sentence imposed was in accordance with the United States Sentencing Guidelines for this crime.
According to Assistant U.S. Attorney Daniel R. Cooper, Jr., Gadson appeared in at least three videos published on YouTube, all of which lyricized the degradation of women through sex trafficking, and promoted the exploitation of women through physical force. In his sentencing remarks, Cooper noted the Alaska State Legislature’s recent recognition that prostitution is in reality sex trafficking.
In imposing sentence, Judge Gleason termed Gadson’s conduct demeaning to women, and called his crime reprehensible. Judge Gleason found that Gadson was a long time trafficker, essentially living off of women, and so proud of his conduct that he had the word “Pimp” tattooed on the side of his neck. Judge Gleason noted that the tattoos and videos in which Gadson appears are despicable ways to project his sense of self to his family and children. Judge Gleason also said that Gadson’s conduct towards the women he had trafficked, and the videos in which he appeared, were despicable, as was his living off them. Moreover, Judge Gleason found that the assaultive behavior described in the police reports with respect to Jane Doe 1 was egregious.
U.S. Attorney Loeffler stated: “The United States Attorney’s Office, in conjunction with the Anchorage Vice Squad and the Federal Bureau of Investigations’ Innocence Lost Task Force, has prioritized the investigation and prosecution of sex trafficking, with particular emphasis on trafficking and exploitation of children and Native Alaskans. We will work with our State, Local and Federal partners to continuously and systematically attack this most exploitive of crimes.”
Ms. Loeffler commends the Vice Squad of the Anchorage Police Department for the investigation of this case, with the support of the Federal Bureau of Investigations’ Innocence Lost Task Force.
Justice Department Sues to Stop South Carolina Tax Return Preparers Engaged in Earned Income Credit SchemeRead the Press Release
The United States has asked a federal court in Florence, S.C., to permanently bar Susann Allen of Darlington County, S.C., and Rachel D. Watson of Florence County, S.C., from preparing federal income tax returns for others, the Justice Department announced today. According to the government complaint, Allen and Watson have prepared federal income tax returns at a number of businesses in South Carolina including, most recently, Fludd’s Express Tax Service and Gold Valley Pawn. The complaint alleges that they have prepared returns that unlawfully understate income tax liabilities and overstate refunds through a variety of schemes.
The government complaint alleges that Allen and Watson prepared returns that unlawfully claim the Earned Income Tax Credit by reporting fictitious Schedule C businesses or business income or fictitious dependents. The complaint also alleges that Allen and Watson fabricated or inflated deductions. According to the complaint, the Internal Revenue Service has examined 32 returns prepared by Watson and six prepared by Allen and found that every single one overstated their client’s refund. The total excessive refund of those returns is alleged to be greater than $100,000. Altogether, the government complaint alleges that Allen’s and Watson’s activities may have resulted in millions of dollars of loss to the United States.
Over the past decade, the Justice Department’s Tax Division has obtained hundreds of injunctions to stop tax fraud promoters and dishonest tax return preparers. Information about these cases is available on the Justice Department website.
Related Materials:
United States v. Susann Allen, et al.
Complaint (PDF)Indiana Resident Sentenced to Serve 34 Years in Federal Prison for Child Exploitation CrimesRead the Press Release
DENVER – Steven Raines, age 35, of Fort Wayne, Indiana, was sentenced today by U.S. District Court Judge R. Brooke Jackson to serve 412 months (over 34 years) in federal prison for attempted coercion and enticement (to engage in unlawful sexual activity with a minor child) and distribution of child pornography, United States Attorney John Walsh and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Kumar Kibble announced. Following his prison sentence, Raines was ordered to serve a life time on Supervised Release. He appeared at the hearing in custody, and was remanded immediately after.
Raines was first charged by Criminal Complaint on July 2, 2012. He was indicted by a federal grand jury in Denver on July 9, 2012. He pled guilty on October 24, 2012. He was sentenced on January 22, 2013.
According to the stipulated facts contained in the plea agreement, on April 1, 2012, an HSI Special Agent based in Glenwood Springs, Colorado was chatting online in an undercover capacity. Specifically, the agent’s undercover persona was that of a single mother of two daughters under the age of 16. The agent entered a chat room, accessible by anyone, whose topic focused on sex with children. While in the chat room the undercover agent engaged in a chat with an individual who expressed interest in having sex with the undercover and the two minor children. The individual went on to say that he had been searching for 20 years for someone like the undercover who would provide sexual access to her children, and that he discovered that he was a “pedo” when he was 15. He also said that he had been previously accused of molesting a child to whom he had access, and that he previously attempted to meet someone like the undercover agent in person, but the person failed to show up.
The individual continued chatting and emailing the undercover using his smart phone for the next three months. He told the undercover that he did not have a computer. Eventually investigators identified the individual as 35-year old Steven Raines, who lived in Fort Wayne, Indiana. As the chats between Raines and the undercover progressed, Raines began to send pictures, some of which depicted child pornography. Eventually Raines and the undercover agent began to make plans for him to travel to Colorado in order to have sex with, or rape, the two young girls. The defendant’s main interest, however, was one of the children who was under the age of 6. He discussed wanting to father a child with the undercover agent. Raines also discussed other children he knew from church or his neighborhood, in whom he had a sexual interest and with whom he attempted to have some sort of contact.
As the travel plans were finalized, Raines stated that he was going to bring his child pornography collection with him to Colorado in order to “teach” the girls and stated an interest in producing child pornography with the undercover agent and the two minor girls. The content of the child pornography he was bringing featured mostly prepubescent females engaged in sexual acts and included sadistic or masochistic conduct. During the communications between Raines and the agent he made statements about both of his children, and about sexually molesting a minor child to whom he had access, and that he produced images of child pornography of his sexual abuse of that child.
The defendant began his travel to Colorado on June 29, 2012. He sent texts to the undercover agent during the duration of the trip. On June 30, 2012, near Topeka, Kansas, the defendant’s van broke down. He rented a vehicle to complete his journey. On June 30, 2012, the defendant arrived at a residence in Garfield County, Colorado, which was the address provided to him by the undercover agent. After his arrival he was taken into custody. Agents and officers seized the defendant’s cell phone, which has the capacity to take photographs and video, contained approximately 130 images and 84 videos of child pornography. During a lawful search of Raines’ home, agents and officers found various discs containing child pornography. The National Center for Missing and Exploited Children identified 23 known series of child pornography featuring real child victims among the images the defendant had on his cell phone and in his email.
“Sexually exploiting children carries extraordinarily severe penalties – decades in federal prison, followed by a life term of Supervised Release,” said U.S. Attorney John Walsh. “It is a top priority of the U.S. Attorney’s Office and the Department of Justice to protect children by prosecuting predators such as Raines.”
“This significant prison sentence removes another child predator from the streets for decades to come, which helps protect children everywhere,” said Kumar C. Kibble, special agent in charge of HSI Denver. “Unfortunately, there are many predators like Steven Raines who pretend to lead normal lives. But our HSI special agents, partnering with other law enforcement agencies, go to extraordinary lengths to help protect and rescue these child victims, while also targeting and prosecuting those who prey on them.”
This case was investigated by HSI and the Garfield County Sheriff’s Office. The HSI Resident Agent in Charge’s Office in Indianapolis, and the United States Attorney’s Office in Fort Wayne, Indiana, also played an important role in this investigation and prosecution.
Raines was prosecuted by Assistant U.S. Attorneys Michelle Heldmyer and ICE Special Assistant U.S. Attorney Lillian Alves with support from Assistant U.S. Attorney Alecia Riewerts Wolak.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit http://www.justice.gov/psc/ For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”
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Huntington Man Sentenced to 2 Years in Federal Prison for Oxycodone Distribution SchemeRead the Press Release
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin announced today that a Huntington man was sentenced to two years in federal prison for aiding and abetting the possession with intent to distribute oxycodone. Rayshawn Allah Wells, 22, previously pleaded guilty in September 2012. Wells admitted that on April 14, 2010, he and an associate distributed approximately 2 ½ 80-milligram oxycodone pills to a confidential informant working with the U.S. 119 Task Force. Wells further admitted that on April 14, 2010, he and an associate distributed three 80-milligram oxycodone pills to an informant. Wells admitted that both illegal pill transactions occurred in Holden, Logan County, W.Va.
On April 14, 2010, members of the U.S. 119 Task Force executed a search warrant at a Holden residence and arrested the defendant and other known individuals. At the time the search warrant was executed, law enforcement agents seized approximately 127 80-milligram tablets. The defendant admitted that he had $1,040 cash on his person that included bills used in earlier controlled transactions.
Wells admitted that he and co-defendant Kawan Michael Wells brought oxycodone pills from Huntington, W.Va. to Logan County for the purpose of distributing them. Kawan Wells, 24, previously pleaded guilty to aiding and abetting the possession with intent to distribute oxycodone. Kawan Wells was sentenced in December 2012 to five years’ probation.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
The U.S. 119 Task Force conducted the investigation. Assistant United States Attorney Joshua Hanks handled the prosecution. The sentence was imposed by United States District Judge Thomas E. Johnston.
Huntington Couple Sentenced to Federal Prison for Illegal Firearm PossessionRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced today that a Huntington couple was sentenced to federal prison for illegal firearm possession. Steven Ray Pauley, 32, of Huntington, was sentenced to two and a half years in prison for being a felon in possession of a firearm. Pauley previously pleaded guilty September 2012. On June 11, 2012, the defendant was observed outside of Coaches Inn Motel in West Huntington in possession of a firearm. Officers with the Huntington Police Department and the ATF approached the defendant and found a loaded .38 caliber revolver on the defendant’s waistband. Pauley was arrested.
Steven Pauley was convicted in July 2003 in the Circuit Court of Cabell County of felony first degree robbery and did not have his rights to possess a firearm restored.
In a related matter, Pauley’s wife and co-defendant, Molly Sue Pauley, 41, of Huntington, was sentenced to three years and two months in prison for aiding and abetting a felon in possession of a firearm. Molly Pauley previously pleaded guilty in September 2012. Ms. Pauley admitted that on June 11, 2012, she illegally possessed a .38 caliber firearm. Ms. Pauley further admitted that she met Steven Pauley in the 800 block of 25th Street in Huntington and gave him the firearm. Ms. Pauley admitted that she was aware that her husband was prohibited from possessing a firearm because of a prior felony conviction.
Ms. Pauley was also prohibited from possessing firearms because of her January 2001 conviction in the Circuit Court of Wayne County (W.Va.) for attempt to commit a felony. Ms. Pauley was also previously convicted of theft of property in the Circuit Court of Hamblen County, Tennessee in November 2005 and felony theft of property in the Circuit Court of Montgomery County, Alabama in July 2009.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Police Department River Cities Gun Crimes Task Force. Assistant United States Attorney Joseph F. Adams handled the prosecutions. The sentences were imposed by United States District Chief Judge Robert C. Chambers.
The cases were brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Head of Alien Smuggling Organization Gets More Than 12 Years in Federal PrisonRead the Press Release
McALLEN, Texas – Jose Aguirre-Nunez, 46, the head of an extensive alien smuggling organization operating in and around Starr County to Harris County, Texas, has been sentenced to a total of 150 months in federal prison, United States Attorney Kenneth Magidson announced today. Another defendant, Higinio Barrientos-Perez, 43, who was a caretaker of the aliens while being held at a stash house in Roma, will be sentenced this Thursday.
Aguirre-Nunez pleaded guilty on March 22, 2007, to conspiracy to transport illegal aliens and conspiracy to commit money laundering and received respective sentences of 150 and 150 months to be served concurrently. Aguirre-Nunez, who is a permanent resident, is expected to face deportation upon completing their federal prison sentences.
Evidence proved that on June 30, 2005, Border Patrol (BP) agents discovered 26 aliens from Honduras and El Salvador at a house in Roma after one of them escaped and contacted law enforcement authorities. Agents arrested Barrientos-Perez after the aliens identified him as the person in charge of the stash house.
During the subsequent investigation, agents discovered that two days earlier BP agents found two Honduran aliens in the brush near Falfurrias. These Honduran aliens told agents that their guide left them and a female behind when the female could no longer continue walking and that the female alien died. The autopsy determined she had died of dehydration. The Honduran aliens stated they ran out of water while they walked in the brush looking for help and that in order to survive they had to drink their own urine. The investigation lead agents to the husband of the deceased female who told agents he contracted with Aguirre-Nunez to transport his wife from Honduras to Houston.
The evidence collected during the investigation revealed that the Aguirre-Nunez alien smuggling organization transported several hundred illegal aliens from Starr County to Harris County, Texas. Between 2001 to 2005, the organization received approximately $400,000 through Western Union and/or MoneyGram which represented the payment by family members for the smuggling of illegal aliens.
Aguirre-Nunez headed the organization and was responsible for contacting the Mexican alien smugglers, arranged for foot guides to cross the aliens into the United States and deliver them to stash houses in Starr County. Aguirre-Nunez also coordinated the transportation of the aliens to Harris County by hiring drivers to transport the aliens, foot guides to walk the aliens around the checkpoint and scouts to check for law enforcement while the aliens were being transported in vehicles.
Aguirre-Nunez and nine members of his organization were indicted for their role in this alien smuggling organization. All have pleaded guilty and been sentenced.
Marciano Andres Avellaneda, 29, was a foot guide that walked aliens around the border patrol checkpoint and Miguel Angel Alarcon-Candelario, was the foot guide that left the Honduran female behind in the brush who later died. Both, who are illegal aliens from Mexico, pleaded guilty to conspiracy to transport illegal aliens and were sentenced 54 and 105 months in prison, respectively.
Omar Wilfredo Guerrero-Sosa, 33, Rosalba Garcia-Perez, 38, also illegal aliens from Mexico, pleaded guilty to conspiracy to harbor illegal aliens and were sentenced to respective 44 and 80 month terms of imprisonment. Guerrero-Sosa was a guide that crossed the aliens into the United States and took them to the Roma stash house, while Garcia-Perez, was a scout for law enforcement as well as took over Aguirre-Nunez’s responsibilities when he was not in Starr County.
Lizzette Barrera-Moreno, a U.S. citizen from Harris County, and Myra Yesenia Villarreal, 31, Guadalupe Perez, 67, Soraya Barrera-Morales, 49, all of Starr County, Texas, all also pleaded guilty to conspiracy to harbor illegal aliens. Perez drove vehicles north of the Border Patrol checkpoint and left them by the side of the road for the aliens to use to travel to Harris County and was ordered to serve 78 months in prison. Villarreal was a scout for law enforcement, while Barrera-Morales took food to the aliens who were held at the stash house in Roma. Both Villarreal and Barrera-Morales also picked up money sent by the family of the illegal aliens through Western Union. They will serve 40 and 37 months in prison, respectively. Barrera-Moreno, who leased the stash house in Roma, was sentenced to three years probation.
The investigation was conducted by Homeland Security Investigations and was prosecuted by Assistant United States Attorney Anibal J. Alaniz.
Ft. Hall Woman Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Christopher A. Crofts announced today that on January 18, 2013, Echo Pocatilla, a 30-year-old enrolled Shoshoni-Bannock from Ft. Hall, Idaho, appeared in Federal District Court for sentencing before United States District Judge Scott Skavdahl on a single count of assault resulting in serious bodily injury. The charge carried a maximum penalty of ten years imprisonment, a $250,000.00 fine, or both; supervised release of not more than three years; restitution; and a $100.00 special assessment. Pocatilla was sentenced to 37 months imprisonment, to be followed by three years of supervised release and was ordered to pay a $100 special assessment and $12,034.00 in restitution. The charge stemmed from a stabbing which occurred on September 23, 2011, on the Wind River Indian Reservation. The case was investigated by the Bureau of Indian Affairs with assistance of the Federal Bureau of Investigation.
Frederick and Carey Gonzales Facing Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Frederick Gonzales, 42, and his wife Carey Gonzales, 36, both of Albuquerque, N.M., were arrested on federal child pornography charges on Jan. 18, 2013. The couple made their initial appearances in federal court in Albuquerque this morning. They remain in custody pending detention hearings which are scheduled for 1:30 p.m. tomorrow.
Frederick and Carey Gonzales previously were arrested on state child pornography charges on Jan. 11, 2013. At the time, Frederick Gonzales was the incoming president of Albuquerque’s Young America Football League (YAFL), and Carey Gonzales was employed as a kindergarten teacher’s aide by the Albuquerque Public Schools (APS). Since then, YAFL has removed Frederick Gonzales from his position with the organization, and APS has fired Carey Gonzales.
Frederick and Carey Gonzales are charged in federal criminal complaints that were filed on Jan. 18, 2013. Frederick Gonzales is charged with distribution, receipt and possession of visual depictions of minors engaged in sexually explicit conduct. If convicted of those charges, he faces a maximum penalty of not less than five years and not more than 20 years in prison. Carey Gonzales is charged with possession of visual depictions of minors engaged in sexually explicit conduct. If convicted, she faces a maximum penalty of ten years of imprisonment or twenty years of imprisonment if the child pornography depicts prepubescent children.
Charges in criminal complaints are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Charlyn E. Rees, and was investigated by the following members of the New Mexico Internet Crimes Against Children (ICAC) Task Force: the New Mexico Attorney General’s Office, the Bernalillo County Sheriff’s Office, the Albuquerque office of the FBI and the New Mexico Regional Computer Forensic Lab.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
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Former Texas State Parole Officer Admits <br /> Taking Bribes from Assigned ParoleeRead the Press Release
WASHINGTON – A former Texas state parole officer pleaded guilty today in Dallas for taking bribes from one of her assigned parolees in exchange for not reporting his parole violations, announced Assistant Attorney General Lanny A. Breuer of the Department of Justice’s Criminal Division.
Nichelle Derricks, 37, of Cedar Hill, Texas, pleaded guilty to one count of honest services wire fraud before U.S. Magistrate Judge Renee Harris Toliver of the Northern District of Texas, who then recommends U.S. District Judge Ed Kinkeade accept the plea.
According to court documents, while serving as a Texas Department of Criminal Justice (TDCJ) parole officer, Derricks and one of her assigned parolees developed an improper relationship in which Derricks secretly used her official position with TDCJ to enrich herself and others by soliciting and receiving cash payments, gifts, furniture, household goods and items, food and beverages and other things of value from the parolee in exchange for favorable official action benefitting the parolee. The scheme, according to court documents, was conducted without the authorization, knowledge or approval of TDCJ and contrary to TDCJ procedures and requirements.
As part of her plea, Derricks admitted she repeatedly failed to report the parolee for violating the terms of his parole, including, among other things, failing to report him for traveling outside Texas without prior, written approval and for engaging in prohibited financial transactions.
Derricks faces a maximum potential penalty of 20 years in prison and a $250,000 fine on the honest services wire fraud charge. She is scheduled to be sentenced on April 24, 2013.
The case is being prosecuted by Trial Attorneys Edward P. Sullivan and Jeffrey E. Tsai of the Justice Department Criminal Division’s Public Integrity Section. The case was investigated by the FBI Dallas Field Office, with assistance from the U.S. Secret Service and the TDCJ Office of Inspector General.Former Niagara Falls Building Commissioner Pleads Guilty to Corruption ChargeRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Guy A. Bax, 66, of Niagara Falls, N.Y., pleaded guilty before U.S. District Judge Richard J. Arcara, to corruptly accepting gratuities in connection with his role as the Building Commissioner for the City of Niagara Falls. The charge carries a maximum penalty of 10 years in prison, a fine of $250,000 or both.
First Assistant U.S. Attorney James P. Kennedy, Jr., who is handling the case, stated that between 2007 and early 2009, the defendant, in his capacity as Acting Building Commissioner for the City of Niagara Falls, routinely recommended and promoted John Gross and his company, David Gross Contracting, to individuals and entities seeking permits and approvals from the city. Bax also created a perception that it would be in the best interest of those seeking permits from the City to use Gross and his company and if they did so, they would have an easier time obtaining the approvals they sought. In exchange for, and as a reward for Bax's practice of steering business to John Gross and David Gross Contracting, the defendant received, at no cost, various items of value from John Gross and David Gross Contracting. The items included home repairs and maintenance services at Bax's personal residence, such as the remodeling of his bathroom and plowing of his driveway, an expense paid trip, free golf outings, and other benefits.
"As we have said in the past, this Office intends to root out public corruption wherever it occurs," said U.S. Attorney Hochul. "Every person or business is entitled to a level playing field when it comes to dealings with Government officials. Public employees, for their part, may not illegally or personally benefit from their position. While instances of public corruption are fortunately rare in Western New York, such will be treated firmly and decisively when they come to our attention."
John Gross was sentenced to 33 months in prison in January 2012 for mail fraud and filing a false tax return.
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Christopher M. Piehota, Special Agent-in-Charge, Buffalo, Division, and the Internal Revenue Service, Criminal Investigation Division, under the direction of Toni Weinrauch, Special Agent-in-Charge.
Sentencing is scheduled for May 10, 2013, at 12:30 p.m. before Judge Arcara.
Former New Jersey Teacher Pleads Guilty in Manhattan Federal Court to Child Exploitation and Child Pornography OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that EVAN ZAUDER, a former sixth-grade teacher at a private school in New Jersey, pled guilty in Manhattan federal court to charges of using the Internet to entice a minor to engage in illegal sexual activity, and to receipt, distribution, and possession of child pornography. ZAUDER pled guilty before United States District Court Judge Lewis A. Kaplan. His criminal conduct is not currently known to have involved any students at the school.
Manhattan U.S. Attorney Preet Bharara stated: “Evan Zauder’s abuse and exploitation of minors was heinous criminal conduct perpetrated on some of the most vulnerable and powerless members of society. This Office treats the protection of children as an extraordinarily serious responsibility, and as this case demonstrates, we will persist in our efforts to ensure that those who prey on minors are found and held accountable.”
According to the Complaint, the Superseding Information, and statements made in court:
Between April and November of 2011, ZAUDER used the Internet to entice a minor in New Jersey who was 14 to 15 years old at the time to engage in sexual activity, and to attempt to entice the minor to do so a second time. ZAUDER also received and distributed files containing child pornography from his desktop computer between December of 2010 and May of 2011, and possessed hundreds of images and videos of child pornography on four devices that were seized from his Manhattan apartment in May of 2012.
ZAUDER, 27, pled guilty to a Superseding Information charging him with one count of enticement of a minor to engage in illegal sexual activity, one count of transportation, receipt, and distribution of child pornography, and one count of possession of child pornography. He faces a minimum sentence of 10 years in prison and a maximum sentence of life in prison on the enticement count, a minimum sentence of 5 years in prison and a maximum sentence of 20 years on the transportation, receipt, and distribution count, and a maximum sentence of 10 years on the possession count. For each of the three counts in the Superseding Information, ZAUDER faces a maximum fine of $250,000 or twice the gross gain or loss from the offense. He will be sentenced by Judge Kaplan on May 22, 2013, at 4:00 p.m.
Mr. Bharara praised the Federal Bureau of Investigation (“FBI”) for its outstanding work in the investigation.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Paul Monteleoni is in charge of the prosecution. Assistant U.S. Attorney Harry A. Chernoff represented the government at today’s plea proceeding.
The FBI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (212) 384-1000. It is staffed around the clock by investigators. Suspected child sexual exploitation or missing children may be reported to the National Center for Missing and Exploited Children, an Operation Predator partner, at (800) 843-5678 or http://www.cybertipline.com.
US v Evan Zauder S1 Information
Former Mortgage Title Agent Sentenced in Multi-Million Dollar Mortgage Fraud Scheme at Jade Apartment Complex in MiamiRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), and Paula Reid, Special Agent in Charge, United States Secret Service, Miami Field Office, announce that Raquel DeJesus Martinez of Miami-Dade County, who previously worked as a title agent, was sentenced today by U.S. District Judge Donald M. Middlebrooks to 24 months in prison, to be followed by 3 years of supervised release, in connection with a scheme to commit mortgage fraud at The Jade apartment complex on Brickell Bay Drive in Miami. In addition, she was ordered to pay restitution in the amount of $4,936,714.32. DeJesus Martinez is the eighth defendant to be sentenced in connection with the scheme.
According to statements in open court and court documents, the defendants engaged in a multi-million dollar mortgage fraud scheme using straw buyers to purchase residential properties at The Jade. As part of the scheme, the defendants submitted mortgage loan applications and supporting documents containing false information to lending institutions. The lending institutions relied on these documents to make mortgage loans to the straw buyers to purchase the residential properties. The defendants then prepared and submitted to the lenders, false HUD-1 statements. The defendants created a second version of the HUD-1 statements, listing the actual sales prices, which were provided to the seller. To conceal and perpetuate the fraud, the defendants made some payments to the condominium association and made some mortgage payments to the lenders to prevent foreclosure and continue to receive rental income for the units. The defendants thereafter diverted the mortgage fraud proceeds into shell companies for their personal use.
Previously, defendants Lilia Casal-Diaz, a real estate attorney, Andres Mendez, Sr. and his son, Andy Mendez, both real estate brokers, Josephine Santana, a mortgage broker, Jose Arnaldo Rosario, Jose Rafael Martinez, and Basilio Gomez, all of Miami-Dade County, were convicted for their roles in the mortgage fraud scheme.
Mr. Ferrer commended the investigative efforts of IRS-CID and the U.S. Secret Service. This case is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Energy Director for City of Rockford Indicted on Public Corruption ChargesRead the Press Release
ROCKFORD — The former Energy Director for the City of Rockford was indicted today on federal charges of public corruption. MARK E. BIXBY, 57, of Rockton, Ill. was charged with two counts of mail fraud, two counts of bribery, two counts of extortion, and one count of making false statements to the Federal Bureau of Investigation.
According to the indictment, Bixby, as the Energy Director, managed the City of Rockford’s Energy Division. The Energy Division operated the Illinois Home Weatherization Assistance Program in Winnebago and Boone counties. The purpose of the weatherization program was to help low-income residents save energy and money by providing services that included repairing and replacing heating systems, windows and doors. The indictment alleges that from at least December 2006 to March 2010, Bixby defrauded a heating contractor and a window contractor, both of whom did work under the weatherization program, out of at least $53,101.33 in funds and benefits. The indictment also charges that Bixby accepted bribes from the contractors and extorted the heating contractor out of $2,980.
According to the indictment, the funds and benefits that Bixby obtained from the two contractors via fraud, extortion, and bribes, included the following: (1) a new 2007 two-door, red convertible Pontiac Solstice; (2) a total of $18,440 in donations to “charities,” which were deposited into bank accounts controlled by Bixby and a family member, and used to pay their personal expenses; (3) $2,980 for the “sale” of cemetery plots by Bixby to the heating contractor, for which Bixby never turned over the titles or deeds to the heating contractor; and (4) a $2,000 “loan” from the window contractor, which Bixby never repaid.
Each count of mail fraud, bribery, and extortion carries a maximum penalty of 20 years in prison. The false statements count carries a maximum penalty of 5 years in prison. All of the counts carry a maximum fine of $250,000 fine, or an alternate fine totaling twice the loss or twice the gain derived from the offense, whichever is greater, and restitution. If convicted, the Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines.
Bixby is scheduled to be arraigned on the indictment on Monday, January 28, 2013, at 11:15 a.m., at the federal courthouse in Rockford. The arraignment will be conducted by U.S. Magistrate Judge P. Michael Mahoney.
The indictment was announced by Gary S. Shapiro, Acting United States Attorney for the Northern District of Illinois; and Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Winnebago County State’s Attorney’s Office and the Rockford Police Department assisted in the investigation.
The government is represented by Assistant U.S. Attorney Scott A. Verseman.
An indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Former Chief Financial Officer of Stanford Financial Group Entities Sentenced to Prison for Role in Fraud Scheme and ObstructionRead the Press Release
James M. Davis, 64, formerly of Baldwyn, Miss., the former chief financial officer of Stanford International Bank (SIB) and Houston-based Stanford Financial Group, was sentenced today to five years in prison for his role in helping Robert Allen Stanford perpetrate a fraud scheme involving SIB, and for conspiring to obstruct a U.S. Securities and Exchange Commission (SEC) investigation into SIB.
Today’s sentence was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Kenneth Magidson of the Southern District of Texas; FBI Assistant Director Ronald T. Hosko of the Criminal Investigative Division; Assistant Secretary of Labor for the Employee Benefits Security Administration (DOL EBSA) Phyllis C. Borzi; Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS); and Chief Richard Weber, of Internal Revenue Service-Criminal Investigation (IRS-CI).
The prison sentence was imposed by U.S. District Judge David Hittner of the Southern District of Texas, who also sentenced Davis to serve three years of supervised release. As part of Davis’ sentence, the court also imposed a personal money judgment of $1 billion, which is an ongoing obligation for Davis to pay back criminal proceeds.
During the sentencing proceeding, Judge Hittner noted that Davis began cooperating with the government in early 2009, shortly after SIB’s collapse. Judge Hittner also noted that over the following three years, Davis provided substantial assistance to the authorities in the investigation and prosecution of others, including testifying at Stanford’s trial; testifying during the trial of Gilbert T. Lopez Jr. and Mark J. Kuhrt, Stanford’s former chief accounting officer and global controller, respectively; and preparing to testify against Laura Pendergest-Holt, Stanford’s chief investment officer. Holt eventually pleaded guilty; Stanford, Lopez and Kuhrt were convicted at trial. Stanford and Holt are currently serving 110 years and three years in prison, respectively. Lopez and Kuhrt are in federal custody and await sentencing, scheduled for Feb. 14, 2013.
As part of his 2009 guilty plea, Davis admitted that he was aware of Stanford’s misuse of SIB’s assets, kept the misuse hidden from the public and from almost all of Stanford’s other employees and worked to prevent the misuse from being discovered. In addition, Davis acknowledged that in January 2009, when the SEC sought testimony and documents related to SIB’s entire investment portfolio, he conspired with others in an effort to impede the SEC’s investigation and help SIB continue operating.
The investigation was conducted by the FBI, USPIS, IRS-CI and DOL EBSA. The case against Davis is being prosecuted by Deputy Chief Jeffrey Goldberg, Deputy Chief William Stellmach and Trial Attorney Andrew Warren of the Justice Department Criminal Division’s Fraud Section, and by Assistant U.S. Attorney Jason Varnado of the Southern District of Texas. The Justice Department also thanks the SEC for their assistance and cooperation in this matter.
Former Chief Financial Officer of Stanford Group Entities Sentenced to Federal Prison for Role in Fraud Scheme and ObstructionRead the Press Release
HOUSTON - James M. Davis, 64, formerly of Baldwyn, Miss., the former chief financial officer of Stanford International Bank (SIB) and Houston-based Stanford Financial Group, was sentenced today to five years in prison for his role in helping Robert Allen Stanford perpetrate a fraud scheme involving SIB, and for conspiring to obstruct a U.S. Securities and Exchange Commission (SEC) investigation into SIB.
Today’s sentence was announced by U.S. Attorney Kenneth Magidson of the Southern District of Texas; Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; FBI Assistant Director Ronald T. Hosko of the Criminal Investigative Division; Assistant Secretary of Labor for the Employee Benefits Security Administration (DOL EBSA) Phyllis C. Borzi; Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS); and Chief Richard Weber, of Internal Revenue Service-Criminal Investigation (IRS-CI).
The prison sentence was imposed by U.S. District Judge David Hittner of the Southern District of Texas, who also sentenced Davis to serve three years of supervised release. As part of Davis’ sentence, the court also imposed a personal money judgment of $1 billion, which is an ongoing obligation for Davis to pay back criminal proceeds.
During the sentencing proceeding, Judge Hittner noted that Davis began cooperating with the government in early 2009, shortly after SIB’s collapse. Judge Hittner also noted that over the following three years, Davis provided substantial assistance to the authorities in the investigation and prosecution of others, including testifying at Stanford’s trial; testifying during the trial of Gilbert T. Lopez Jr. and Mark J. Kuhrt, Stanford’s former chief accounting officer and global controller, respectively; and preparing to testify against Laura Pendergest-Holt, Stanford’s chief investment officer. Holt eventually pleaded guilty; Stanford, Lopez and Kuhrt were convicted at trial. Stanford and Holt are currently serving 110 years and three years in prison, respectively. Lopez and Kuhrt are in federal custody and await sentencing, scheduled for Feb. 14, 2013.
As part of his 2009 guilty plea, Davis admitted that he was aware of Stanford’s misuse of SIB’s assets, kept the misuse hidden from the public and from almost all of Stanford’s other employees and worked to prevent the misuse from being discovered. In addition, Davis acknowledged that in January 2009, when the SEC sought testimony and documents related to SIB’s entire investment portfolio, he conspired with others in an effort to impede the SEC’s investigation and help SIB continue operating.
The investigation was conducted by the FBI, USPIS, IRS-CI and DOL EBSA. The case against Davis is being prosecuted by Assistant U.S. Attorney Jason Varnado of the Southern District of Texas, Deputy Chief Jeffrey Goldberg, Deputy Chief William Stellmach and Trial Attorney Andrew Warren of the Justice Department Criminal Division’s Fraud Section. The Justice Department also thanks the SEC for their assistance and cooperation in this matter.
Former CEO-President of San Diego-Based Company Charged in $28 Million Stock Fraud Mark Lopez Also Accused of Obstructing SEC Investigation by Hiding Emails in Manila Folders Marked “Files Deleted” and “Not Released to SEC Subpoena (Delete).”Read the Press Release
United States Attorney Laura E. Duffy announced today the unsealing of an indictment charging Mark Anthony Lopez – the former President and CEO of Unico, Inc. (“Unico”) – with one count of conspiracy to commit securities fraud and two counts of obstructing justice. Unico is a San Diego-based mining company whose stock is publically traded. Lopez was arrested on January 17, 2013, by Special Agents of the FBI.
According to the indictment, Lopez conspired with New Jersey-based stock trader Mark Allen Lefkowitz (who previously pled guilty) to manipulate the share price and volume of Unico’s stock to benefit corporate insiders at the expense of shareholders. As a result of the fraud, the company issued approximately 9 billion new shares of its stock that it did not register with the Securities and Exchange Commission ("SEC"). These new, unregistered shares diluted existing shares, causing their value to drop by as much as $7 million. At the same time, Lefkowitz received free-trading shares from Unico worth more than $28 million, which he sold to unsuspecting buyers on the open market.
To carry out the fraud, Lopez and Lefkowitz exploited Section 3(a)(10) of the Securities Act of 1933 C a little-known provision that allows companies to issue unregistered shares of stock to settle "bona fide" debts. Lopez, on behalf of Unico, would enter into purported loan agreements with various shell corporations owned by Lefkowitz, most of which were based in the Turks and Caicos Islands. It was understood by the conspirators that Unico would purposefully default on the loan agreements so that Lefkowitz’s companies could initiate sham lawsuits against Unico.
Each and every one of these sham lawsuits would be brought by Florida-based lawyers in a Sarasota, Florida court. The Florida attorneys, even though they represented opposite sides in the lawsuits, would obtain their pleadings from a single Manhattan-based law firm that oversaw the sham lawsuits. Very soon after each lawsuit was filed C and typically within the very same week C Lopez and Lefkowitz would draft a written settlement agreement. The terms of the written settlement agreement would be extremely favorable to Lefkowitz. In short, Lopez would agree to settle Unico’s debt by issuing unregistered shares of stock worth on average seven times the debt that Unico actually owed. According to a secret side-agreement with Lopez, Lefkowitz would sell the shares on the open market to unsuspecting buyers and kick back a portion of the proceeds to Unico. This kickback would take the form of a new loan C which would have the added benefit of continuing the fraud scheme.
According to the indictment, Lopez also tried to obstruct an SEC probe into his misconduct by refusing to turn over emails, which he printed and concealed in two manila folders marked “Files Deleted” and another marked “Not Released to SEC Subpoena (Delete).” The indictment also alleged that Lopez redacted portions of an email and tried to delete it from his computer, and later lied to the SEC under oath during deposition testimony.
Lopez faces up to a total of 65 years in prison and $750,000 in fines. According to public filings, Lopez resigned his positions as CEO and President of Unico on June 9, 2012.
United States Attorney Duffy emphasized that this type of fraud attacks the very heart of our financial system. "The leaders of corporations—including and especially CEOs—owe a special duty to their shareholders. When these corporate leaders ignore that duty and use their positions to enrich insiders, it not only harms shareholders, but also threatens to undermine confidence in our financial markets and slows our country’s ongoing economic recovery." Duffy added that this investigation was initiated by special agents of the Federal Bureau of Investigation.
Lopez is expected to appear in court before the Honorable Barbara L. Major on January 23, 2013 at 9:30 a.m. for a bond hearing, and before the Honorable Irma E. Gonzalez, United States District Court Judge on February 22, 2013 at 2:00 p.m., for a motion hearing.
DEFENDANT Case Number: 12CR5236-IEG Mark Anthony Lopez SUMMARY OF CHARGESConspiracy to Commit Securities Fraud, in violation of Title 18, United States Code, Section 1349. Maximum penalties: 25 years in prison, 5 years= supervised release, a $250,000 fine and a $100 special assessment.
Destruction, Alteration and Falsification of Records, in violation of Title 18, United States Code, Section 1519. Maximum penalties: 20 years in prison, 5 years’ supervised release, a $250,000 fine and a $100 special assessment
INVESTIGATING AGENCYFederal Bureau of Investigation
An indictment itself is not evidence that the defendant committed the crimes charged. The defendant is presumed innocent until the United States meets its burden in court of proving guilty beyond a reasonable doubt.
Florida Man Indicted for Federal Election ViolationsRead the Press Release
WASHINGTON– A two-count superseding indictment was unsealed today in the Northern District of Florida charging a Florida resident with providing campaign contributions in the names of others and causing a presidential campaign committee to make a false statement to the Federal Election Commission (FEC), announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and Robert O. Davis, Acting U.S. Attorney for the Northern District of Florida.
Jay Odom, 56, of Destin, Fla., was charged in federal court in the Northern District of Florida with one count of providing campaign contributions in the name of another and one count of causing another to make false statements to the FEC.
The indictment alleges that in 2007, Odom directly or indirectly used personal funds aggregating more than $10,000 to reimburse individual contributions to the authorized campaign committee of a presidential candidate. As a result, Odom allegedly caused the authorized campaign committee of that presidential candidate to file reports with the FEC that falsely stated that certain individuals had made federal campaign contributions when in fact each contribution was made by Odom. According to the indictment, Odom was aware of the maximum donation that could be made by an individual to the campaign, and he knowingly devised a scheme to funnel his own money through the names of others in order to conceal from the FEC the true source and amount of the campaign contribution.
The charge of causing another person to make a false statement to the FEC carries a maximum sentence of five years in prison. The charge of providing campaign contributions in the name of another carries a maximum sentence of two years in prison.
The charges in the indictment are only allegations, and the defendant is presumed innocent unless and until proven guilty.
The superseding indictment results from an investigation by the FBI. This case is being prosecuted by Assistant U.S. Attorney Randall J. Hensel and Trial Attorney Brian K. Kidd of the Criminal Division’s Public Integrity Section.
Federal Jury Finds Jacksonville Armed Career Criminal Guilty of Possessing A FirearmRead the Press Release
Jacksonville, FL- U.S. Attorney Robert E. O'Neill announces that a federal jury last week found Willie Lee Daniels (39, Jacksonville) guilty of being a felon in possession of a firearm. Because of his prior criminal history, Daniels is classified as an Armed Career Criminal, and faces a mandatory minimum penalty of 15 years, up to a maximum penalty of life in federal prison. Daniels was indicted on July 15, 2010.
According to testimony and evidence presented at trial, in October 2009, Daniels and his girlfriend got into a verbal argument inside of their apartment. The argument eventually moved outside. Daniels' girlfriend called out for help, yelling that Daniels had a gun. One of the neighbors called 911. Officers from the Jacksonville Sheriff's Office responded, and observed Daniels walking with his girlfriend in the parking lot. After making eye contact with one of the officers, Daniels ran behind an annex building and threw the gun over a nearby fence. Daniels was detained by the officers, and the gun was subsequently recovered.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sheriff's Office. It is being prosecuted by Assistant United States Attorney Malisa Chokshi and Frank Talbot.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy led by ATF. United States Attorney Robert E. O’Neill, along with Julie Torres, ATF Special Agent in Charge, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Federal Inmate Sentenced for Assault ChargeRead the Press Release
LAKE CHARLES, La.: United States Attorney Stephanie A. Finley announced today that Edward Rodriguez, 39, an inmate at Pollock USP, was sentenced today to an additional two years in prison for assaulting a Bureau of Prison employee.
Edward Rodriguez assaulted a USP Pollock officer while the officer was engaged in the performance of his duties. Rodriguez was standing in front of the officer’s station when he assaulted another inmate. The inmate ran into the officer’s station for protection. An officer went to his aid, and Rodriguez shoved the officer in the chest before turning around and fleeing from the officer’s station.
Rodriguez is currently serving a 154-month term of imprisonment for aiding and abetting armed bank robbery, and aiding and abetting the use of a firearm during a crime of violence.
The investigation was conducted by the FBI and the Special Investigative Services for The Bureau of Prisons at Pollock. The case was prosecuted by Senior Litigation Counsel Joseph G. Jarzabek and Special United States Attorney Seiji Ohashi.
Essex County, N.J., Man Sentenced to 207 Months in Prison for Robbing 10 BanksRead the Press Release
Also Discharged Weapon in Furtherance of a Crime of Violence
TRENTON, N.J. – An Essex County, N.J., man was sentenced to 207 months in prison for federal bank robbery charges and discharge of a firearm in connection with bank robbery, United States Attorney Paul J. Fishman announced.
Maurice Richardson, 43, of Irvington, N.J., was arrested Dec. 1, 2010, by officers of the Old Bridge Police Department. He previously pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to Counts 12 and 13 of the 13-count Indictment charging him with robbing a Capital One Bank branch and assaulting people during the course of the robbery.
Richardson also admitted nine additional bank robberies, for a total of 10, as follows:
Date
Bank
Location
Commerce Bank
Morris Township, N.J.
May 31, 2008
Commerce Bank
Rahway, N.J.
July 27, 2008
Commerce Bank
Nutley, N.J.
Sept. 28, 2008
Commerce Bank
Nutley, N.J.
April 6, 2009
Capital One Bank
Marlboro, N.J.
Dec. 21, 2009
Capital One Bank
Marlboro, N.J.
July 3, 2010
Capital One Bank
Hasbrouck Heights, N.J.
Aug. 6, 2010
TD Bank
Howell, N.J.
Sept. 1, 2010
Capital One Bank
Paramus, N.J.
Dec. 1, 2010
Capital One Bank
Marlboro, N.J.
According to documents filed in this case and statements made in court:
Richardson entered the banks and gave notes to the tellers, which variously demanded money in large bills, stated that he had a gun, and threatened he would shoot the tellers if they did not comply. Witnesses at some of the robberies observed the defendant leaving the crime scenes in a burgundy SUV.
On Dec. 1, 2010, a Marlboro police officer observed a burgundy Chevrolet Suburban with tinted windows entering Route 9 North from a street adjacent to the Capital One Bank's parking lot. After an approximately one-mile pursuit, the vehicle struck a concrete wall in Sayreville, N.J., and came to a stop. Richardson was apprehended when he got out of the SUV and attempted to flee. A 9 mm bullet was found in the vehicle, and a 9mm handgun was found after a search of the area near where Richardson crashed. It was the third time he had robbed the same bank branch in less than two years.
In addition to the prison term, Judge Sheridan sentenced Richardson fo three years of supervised release and ordered to pay restitution of $50,646.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez in Newark with the investigation leading to today’s sentence. He also thanked the Monmouth County Prosecutor's Office, the Old Bridge Police Department, Sayreville, Police Department, Marlboro Police Department, Howell Police Department, Morris Township Police Department, Rahway Police Department, Nutley Police Department, Hasbrouck Heights Police Department and Paramus Police Department for their roles in the investigation.
The government is represented by Assistant U.S. Attorney R. Joseph Gribko of the U.S. Attorney's Office Criminal Division in Trenton.
13-035
Defense counsel: Michael A. Armstrong Esq., of Willingboro, N.J.
Essex County, N.J., Man Arrested for Stealing Oxycodone from Manufacturing FacilityRead the Press Release
NEWARK, N.J. – An Essex County, N.J., man who worked at a facility in Elizabeth, N.J., that manufactured oxycodone was arrested this morning for stealing more than 8,500 pills from the facility, U.S. Attorney Paul J. Fishman announced.
Edwin Hernandez, 48, of Irvington, N.J., was charged by Complaint with possession and distribution of Oxycodone. He was scheduled to make his initial court appearance later today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to the Complaint:Hernandez was previously employed at a company identified as “Company 1,” one of the largest United States manufacturers of oxycodone, at the company’s Elizabeth, N.J., facility. On Nov. 21, 2012, Hernandez was observed by another employee scooping large amounts of 30 mg oxycodone pills into a quart-sized plastic bag. A subsequent search of Hernandez’ locker by security, pursuant to corporate policy, revealed a backpack containing 8,591 30mg oxycodone pills. The street value of the stolen pills ranges from $170,000 to $250,000.
Oxycodone, also known as “oxy,” is a narcotic analgesic or painkiller and is classified as a Schedule II controlled substance. Demand for oxycodone-based prescription pain medication has grown to epidemic proportions in the United States, and dealers profit by selling such medication on the street. Oxycodone-based Schedule II drugs have a high potential for abuse, and users will often crush and snort the pills or dissolve and inject them to get an immediate high. This abuse can lead to addiction and overdose, and, sometimes death.
U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge Robert G. Koval, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Daniel V. Shapiro of the U.S. Attorney’s Office General Crime Unit in Newark.The charge and allegations contained in the Complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
13-034
Defense counsel:Hernandez, Edwin Complaint
En Fuego Ministry “Apostle” Sentenced to Life for Child Sex TraffickingRead the Press Release
Orlando, Florida - U.S. District Judge Roy B. Dalton, Jr. today sentenced Luis E. Morales (58, Ormond Beach) to life in federal prison for child sex trafficking and transporting children across state lines to engage in sexual activity. The court also ordered Morales to pay more than $35,000 in restitution to the victims of the offenses, and to forfeit his interest in the property located at 8 Crossings Trail in Ormond Beach.
Judge Dalton also sentenced Morales’ co-defendant, Rebeca Rivera (28, Hartford, Connecticut) today. Rivera was sentenced to 15 years in federal prison for her role in aiding and abetting the sex trafficking of a child and the transportation of a child across state lines to engage in sexual activity. As part of her sentence, Rivera was ordered to pay $31,030 in restitution to the victim of her offenses, to serve 10 years of supervised release and to register as a sex offender. Morales and Rivera were convicted on November 5, 2012.
According to evidence presented at trial, Morales was a self-proclaimed “Apostle” in a ministry that he founded called En Fuego for Jesus. Rivera was one of his “prophets” in the ministry. In November 2009, Morales transported a 12-year-old ministry member from Florida to Connecticut, knowing that the minor would be caused to engage in a commercial sex act. While in Connecticut, Rivera recruited, encouraged, and enticed the minor to engage in sex acts with Morales. Later in November 2009, Morales transported the minor from Connecticut to Florida with the intent to engage in sexual activity with the minor. In December 2010, Morales transported a 13-year-old member of the ministry from Arizona to Florida, and then to the Virgin Islands, with the intent to engage in sexual activity with that minor.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Karen L. Gable.
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."
Elkins Resident Enters Plea of Guilty to Manufacturing MarijuanaRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistELKINS, WEST VIRGINIA - A 44 year old Elkins, West Virginia, resident entered a plea of guilty on January 18, 2013, in United States District Court in Elkins before Magistrate Judge John S. Kaull.
United States Attorney William J. Ihlenfeld, II, announced that: DANIEL RAY PHARES entered a plea of guilty to “ Manufacturing Marijuana” in Elkins. As part of his plea, PHARES has agreed to the forfeiture of $950.01 in US currency, a firearm and ammunition, which constitute proceeds obtained as a result of drug activity. PHARES, who is free on bond pending sentencing, faces up to 10 years imprisonment and a $500,000 fine.
The case was prosecuted by Assistant United States Attorney Stephen D. Warner and investigated by the Elkins Police Department., Randolph County Sheriff’s Department and the West Virginia State Police.
Drug Couriers Sentenced to Federal PrisonDrug Traffickers Racing to Receive Lower State Sentences, Fail to Avoid Federal ProsecutionRead the Press Release
MEDFORD, Ore. - Francisco Hernandez-Figueroa, 29, from San Rafael, Mexico and Jaime Eugene Muniz, 28, from Sacramento, California were both sentenced to federal prison for possession of methamphetamine with intent to distribute it. U.S. District Judge Owen M. Panner sentenced Hernandez-Figueroa to 120 months in prison and Muniz to 60 months in prison for each of their drug trafficking offenses, both of their sentences to be served concurrently to their remaining prison terms they received from their state court convictions in 2011.
On March 16, 2001, an Oregon State Police officer stopped Muniz for a traffic violation while driving northbound on Interstate 5. Following the stop, the officer observed numerous things based on his training and experience that were typical of those trafficking in narcotics. A drug detection dog alerted to the presence of drugs in the vehicle and, upon searching, the officer located a hidden compartment built into the center console area with an electronic locking mechanism. The officer discovered eight packages wrapped in black tape inside the compartment. Later laboratory analysis and investigation revealed that the packages contained over 10 lbs. of pure methamphetamine with an estimated street value of $600,700, all destined for Portland, Oregon.
On March 20, 2011, in a separate and unrelated incident, an Oregon State Police officer stopped Hernandez-Figueroa's car on Interstate 5 after observing a traffic violation. Following the stop, the officer observed numerous things based on his training and experience that were typical of those trafficking in narcotics. When the vehicle was searched, the officer determined that the vehicle was equipped with a sophisticated electronic activation system leading to two separate hidden compartments located behind side panels in the rear passenger compartment. The activation system included push button switches hidden in the steering column with switch activation when adjusting the driver's seat. Officers eventually gained access to the hidden compartments and discovered a total of 16 packages wrapped in black duct tape. Later laboratory analysis and investigation revealed that the packages contained over 15 lbs. of pure crystal methamphetamine with an estimated street value of $870,000, destined for Seattle, Washington. Officers also learned that $4,500 in crisp $100 bills that Hernandez-Figueroa was carrying was part of his drug trafficking activity and that he had illegally entered the United States recently for the specific purpose of trafficking in methamphetamine.
Within a few days of their arrest, and based on advice from their defense attorneys, both Muniz and Hernandez-Figueroa immediately demanded to plead guilty and be sentenced in state court on drug charges before their cases could be reviewed by the United States Attorney's office in an attempt to avoid federal prosecution and longer federal prison terms. Muniz and Hernandez-Figueroa were both sentenced to the Oregon Department of Corrections for terms of 59 months and 60 months, respectively.
"The United States Attorney's office will not be deterred in pursuing cases against drug traffickers who attempt to avoid federal prosecution by racing to state court to plead guilty," said S. Amanda Marshall, United States Attorney for the District of Oregon." These were some of the largest seizures of nearly 100% pure methamphetamine in Southern Oregon. The Department of Justice authorized our prosecution because the state convictions and sentences did not adequately vindicate the interest the United States has in prosecuting major drug traffickers."
Sentencing documents noted that these two defendants were squarely in the middle of the chain of distribution of a significant amount of pure methamphetamine and sufficiently connected into the drug trafficking organization that entrusted them with a significant amount and valuable load of illicit drugs on more than one occasion. Both Muniz and Hernandez-Figueroa have since filed for post-conviction relief in Jackson County Circuit Court to set aside their state convictions alleging a substantial constitutional violation related to inadequate defense attorney professional performance.
The cases were investigated by the Oregon State Police and Immigration and Customs Enforcement and were prosecuted by Assistant U.S. Attorney Byron Chatfield.
Colorado Horse Breeder Arrested for Income Tax EvasionRead the Press Release
DENVER – Nikitis A. Mangeris, age 69, of Berthoud, Colorado, was arrested last Friday (January 18, 2013) at his home for income tax evasion, the United States Attorney’s Office and IRS Criminal Investigation announced. Mangeris was indicted by a federal grand jury in Denver on January 9, 2013 for tax evasion and aiding and abetting in tax evasion. The indictment remained sealed until his arrest and subsequent initial appearance. Mangeris appeared in U.S. District Court in Denver on the day he was arrested and was advised of his rights and the charges pending against him. Mangeris was then released on a $10,000 unsecured personal appearance bond. He is scheduled to appear in court on January 24, 2013 at 10:30 a.m. for arraignment.
According to the indictment, Mangeris operated the Les Beaux Chevaux and Tenet Investment Group businesses. The businesses held Arabian horses (“businesses’ horses”) and provided horse breeding services. Approximately twelve of the businesses’ horses were registered with the Arabian Horse Association in the name of Les Beaux Chevaux and approximately two of the businesses’ horses were registered with the Arabian Horse Association in the name of Tenet Investment Group. Mangeris kept and cared for, at his residence, some of the horses including a breeding stallion known as MHR Nobility.
Mangeris has not filed a U.S. Individual Income Tax Return, Internal Revenue Service (“IRS”) Form 1040, for calendar years 1997-2003, 2005-2007, or 2010. Beginning in 2002, the IRS conducted an audit of Mangeris for calendar years 1997-1999. On or around February 6, 2004, Mangeris signed an IRS Form 4549, consenting to the IRS assessment and collection of back taxes, penalties, and interest from him for calendar years 1997, 1998, and 1999 for amounts totaling approximately $850,235.77, $18,349.27, and $23,370.24, respectively.
Despite agreeing to these back taxes, penalties, and interest, Mangeris has evaded payment of these amounts. In or around 2004 and 2007, he filed IRS Forms, 433-A - Collection Information Statement for Wage Earners and Self-Employed Individuals, which failed to list all income, assets, liabilities and other information. In or around 2005, he filed an IRS Form 1040, for calendar year 2004, which failed to report, on a Schedule C or otherwise, substantial amounts of income from his horse breeding businesses and receipts from semen sales. Furthermore, Mangeris directed third-party buyers to make payments for the purchase of semen and offspring derived from his businesses’ horses to other individuals and entities holding bank accounts he controlled and paid his own personal expenses through such accounts.
“With tax season around the corner this indictment should serve as a reminder that anyone who evades paying their taxes will be held criminally accountable,” said U.S. Attorney John Walsh.
“As tax filing season approaches, this is a reminder that all taxpayers should file complete and accurate tax returns; all income regardless of the source is taxable,” said Stephen Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office.
Mangeris was charged with one count of income tax evasion and aiding and abetting. If convicted, he faces not more than 5 years in federal prison, and a fine of up to $250,000.
This case was investigated by agents with IRS-Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Kenneth Harmon and Special Assistant U.S. Attorney Kevin Sweeney. Kevin Sweeney is a trial attorney from the Justice Department’s Tax Division,
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
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Cleveland Heights Man Indicted on Four Counts of Bank RobberyRead the Press Release
A federal grand jury has returned an indictment charging Brandon Laster, age 30, of Cleveland Heights, Ohio, with four counts of bank robbery, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that on October 30, November 18, November 26, and December 11, 2012, Laster did by force, violence, and intimidation, take from the person, presence, and custody of bank tellers the sum of approximately $8,000 which was under the care, custody, and possession of four banks located in University Heights, Cleveland Heights, Independence, and Bedford Heights, the deposits of which were then insured by the Federal Deposit Insurance Corporation.
The indictment was presented to the grand jury by Assistant United States Attorney Michelle M. Baeppler after an investigation by agents of the Federal Bureau of Investigation and local law enforcement officers.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to the case, including the defendant’s prior criminal records, 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.
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.
Clean Water Act ViolationRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Taney County, Mo., man pleaded guilty in federal court today to submitting false water samples for testing from a wastewater treatment facility that dumped raw, untreated sewage into Table Rock Lake for much of 2008.
Bruce Raymond Morris, 63, of Taney County, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with making false statements in violation of the Clean Water Act.
Morris was employed by Light Environmental, Inc., which provides environmental and waste treatment services. Landmarc Estates, a Taney County subdivision, hired Light Environmental to operate its wastewater treatment facility, to conduct wastewater sampling at the facility, and to submit wastewater sample results to the Missouri Department of Natural Resources as required by its federal permit. Morris was responsible for operating the wastewater treatment facility serving Landmarc Estates from March 2008 to January 2009.
The Landmarc Estates wastewater treatment facility was located less than 100 yards from Table Rock Lake. It discharged into a roadside ditch, and from there the discharged materials flowed downhill into Table Rock Lake. From March 2008 to January 2009, the Landmarc Estates facility did not properly treat its wastewater. Its electrically-operated motor, providing the only source of operating power for the facility, was inoperable for this entire period. As a result, raw, untreated sewage was released into the roadside ditch, and that untreated sewage flowed directly into Table Rock Lake.
Morris knew the Landmarc Estates facility did not properly treat its wastewater, and was in violation of its permit. As operator of the facility, Morris was responsible for its upkeep and repair; however, Morris did not repair the facility. Knowing that wastewater samples taken from the facility would not pass state tests, Morris substituted test samples from another wastewater treatment facility. Morris submitted those substituted test samples for biochemical analysis, falsely certified on the quarterly Wastewater Discharge Monitoring Reports that the test samples and laboratory test results were for the Landmarc Estates facility, and caused those false reports to be submitted to the state.
According to today’s plea agreement, a state inspector found at least 10 violations by the wastewater treatment facility, the most egregious of which was that raw, untreated sewage was released directly into the environment.
Under federal statutes, Morris is subject to a sentence of up to two years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the Missouri Department of Natural Resources and EPA Criminal Investigation Division.
Cherry Creek Man Pleads Guilty to AssaultRead the Press Release
US Attorney Brendan V. Johnson announced that Joshua Hale, age 22, of Cherry Creek, South Dakota, appeared before US Magistrate Judge Mark A. Moreno on January 18, 2013, and pled guilty to a Superseding Information that charged him with Assault by Striking, Beating and Wounding. The maximum penalty upon conviction is 6 months in custody, a $5,000 fine, restitution, and a $10 special assessment.
The conviction arose from an incident that occurred in July 2012 when Hale assaulted an adult male in Cherry Creek, South Dakota.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. The case is being prosecuted by Assistant US Attorney Mikal Hanson.
A presentence investigation was ordered, and a sentencing date was set for April 9, 2013. The defendant was remanded to the custody of the US Marshal pending sentencing.