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22 January 2013
Charlotte Man Sentenced to 60 Years in Prison for Marijuana Trafficking, Money Laundering and Gun OffensesRead the Press Release
CHARLOTTE, N.C. – U.S. District Court Judge Robert J. Conrad, Jr. sentenced today Parker Antron Coleman, 28, of Charlotte to 30 years in prison for marijuana trafficking and money laundering, plus a consecutive 30 years for firearms offenses, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Coleman was also ordered to serve 10 years of supervised release.
U.S. Attorney Tompkins is joined in making today’s announcement by Brock D. Nicholson, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Atlanta and the Carolinas and Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department.
According to evidence presented at his trial and other court records, Coleman was the head of a drug trafficking conspiracy that transported and distributed more than four tons of marijuana in the Charlotte area. Court records indicate that Coleman’s suppliers were linked to California-based members of the “Mexican Mafia” drug trafficking organization. According to trial evidence and filed court documents, the drug organization had “couriers” who used commercial flights to travel between the two states, each time transporting approximately $50,000 in cash to California, and returning to Charlotte with approximately 100 pounds of marijuana in checked baggage. An accomplice working at the airport in California assisted the couriers with passing their luggage containing the drugs through airport security. Coleman convinced friends and family members, among others, to act as couriers for him, as well as his own probation officer who became a “lieutenant” in his drug organization. Trial evidence demonstrated that couriers for the organization made well in excess of 100 such round trips.
Court records indicate that on November 2, 2010, law enforcement recovered $117,595 at the airport from two of Coleman’s couriers and approximately 30 pounds of marijuana from the South Park residence of one of Coleman’s co-conspirators. Upon executing a search warrant on the same day, law enforcement also recovered $92,577 in cash, a semi-automatic handgun, large quantities of drug trafficking paraphernalia and money laundering evidence from Coleman’s residence. Coleman initially denied owning the residence however, law enforcement recovered information that tied the property to the defendant, including business records, photographs, and exotic fish and aquarium equipment worth over $15,000.
On November 16, 2010, law enforcement arrested Coleman and seized two handguns hidden in a secret compartment in Coleman’s luxury SUV. Coleman is a convicted felon and is therefore prohibited from carrying and/or owning a firearm.
Coleman’s prosecution stems from operation “Goldilocks,” an Organized Crime Drug Enforcement Task Force (OCDETF) investigation that began in January 2009 and has resulted in the federal prosecution of approximately 70 individuals involved in the drug conspiracy.
“Coleman trafficked tons of marijuana into Charlotte and profited from spreading drugs in the city he grew up in. Today’s sentence is the capstone to a multi-year international drug trafficking investigation that has dismantled a major drug organization and has landed over 60 defendants in federal prison,” said U.S. Attorney Tompkins.
“As the head of a significant drug trafficking organization in Charlotte, the defendant controlled the smuggling and distribution of large amounts of marijuana," said Brock D. Nicholson, special agent in charge of HSI Atlanta, who oversees agency investigations in Georgia and the Carolinas. “Working with great partners and teamwork under the Organized Crime Drug Enforcement Task Force model, HSI special agents and Charlotte-Mecklenburg officers have disrupted and dismantled this cell and crippled their operations in North Carolina and California.”
“I commend our agency partners for all their hard work and diligence in helping to dismantle and disrupt drug trafficking activities between here and California,” said Chief Rodney Monroe, Charlotte-Mecklenburg Police Department. “With the turn of events, there is now one less drug trafficking organization plaguing our community.”
Coleman’s sentence was enhanced due to prior felony convictions. He has been in local federal custody since his November 2010 arrest and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a facility. Federal sentences are served without parole.
U.S. Attorney Tompkins credited special agents of ICE HSI and CMPD officers for the investigation leading to today’s sentence. The prosecution was handled by Assistant United States Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
Cenex Harvest States, Inc. Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on January 22, 2013, before U.S. District Judge Sam E. Haddon, Cenex Harvest States, Inc., (CHS Inc.) was fined $500,000 for failure to report a release of a hazardous substance. In addition, CHS will make a $50,000 payment to the Phillips County Rural
Fire Department as community service and pay a $400 special assessment.
In an Offer of Proof filed by Assistant U.S. Attorney Kris A. McLean, the government stated it would have proved at trial the following:
The Milk River Cooperatives' (MRC) facility at Malta is owned by CHS Inc. The MRC facility's primary business consisted of retail sales of feed and seed, fertilizers, pesticides, and herbicides to local farmers. During late 2009, the herbicides stored at the MRC facility included approximately 1,800 pounds of materials containing the chemical 2,4-D.
On November 21, 2009, at approximately 1:30 a.m., the MRC facility caught fire. The Phillips County Volunteer Fire Department Chief arrived on the scene at approximately 2:00 a.m. The Chief observed the MRC facility manager on sight moving equipment to safety. The MRC facility manager told the Chief that the building held a variety of different chemicals. The Chief told the MRC facility manager to place berms in the ditches to contain the flow of chemicals and to "get hold of a hazmat team." The Chief was concerned about the liquid chemicals all over the floor of the building. The MRC facility manager watched large barrels of the chemical 2,4-D go up in flames. The MRC facility manager asked the fire department to not spray water on the fire to prevent the spreading of the chemicals. The Chief left the fire scene at approximately 4:30 a.m. and observed that most of the chemicals located inside the building had burned or released to the air and ground.
The general manager for all MRC facilities arrived on the scene at approximately 3:30 a.m. Upon his arrival, the general manager took a CHS Inc. emergency response card out of his wallet and called CHS Inc.'s Environmental, Health and Safety Manager to notify him of the fire. The Environmental, Health and Safety Manager called the State of Montana Disaster and Emergency Planning Services (MDES) to report the fire at CHS Inc.'s Malta facility. The MDES planner that received the call understood that it was a warehouse fire and that chemicals such as glyphosate, 2,4-D and Round-up were contained in the warehouse. The MDES planner understood from CHS Inc.'s Environmental, Health and Safety Manager that the fire was small and of no significance. The MDES planner was not told that chemicals were released onto the ground or that the chemicals posed any risk. The MDES planner understood the fire was under control and contained in the facility. No one from CHS Inc. placed a call to the National Response Center or the EPA Emergency Response Center in Denver, Colorado.
The manager of CHS Inc.'s Big Sandy facility also served as the safety manager for its Malta facility. This CHS Inc. manager responded to the fire scene at approximately 7:00 a.m. on November 21. The manager provided an inventory of chemicals that had been stored at the Malta facility to the Malta Fire Department. The manager was very concerned about products containing 2,4-D being toxic and dangerous when consumed in a fire. The manager later stated that if the wind had been blowing west, towards Malta, they would have evacuated the town. Shortly after the fire, 14 calves downwind at a ranch east of Malta died of a lung ailment. A veterinarian stated that toxic smoke from the fire could not be ruled out as a cause of death. CHS Inc. paid the owners of the calves market value for the dead calves and also purchased approximately 473 head of cattle that had been exposed to smoke from the MRC facility fire.
Cleanup of the fire's aftermath included collection of 6,750 gallons of a water/chemical mixture waste created by fire suppression efforts. Impacted soils around the facility were excavated. Approximately 130 cubic yards of 2,4-D contaminated soil was collected and held for proper disposal.
Congress has passed many laws regulating companies to be good neighbors to the environment. There is an existing regulatory framework to protect the public health of Montana citizens and Montana businesses. In fact, most of the environmental laws, like the Comprehensive Environmental Response Compensation and Liability Act (CERCLA), came into existence 30 or 40 years ago. Under CERCLA, CHS had the duty to immediately notify the National Response Center as soon as it had knowledge of an unpermitted release of hazardous substance, specifically the chemical 2,4-D. CHS failed its duty." said U.S. Attorney Michael W. Cotter. "The failure by any individual or corporation to properly report and handle a chemical spill will be investigated and prosecuted in the District of Montana. The U.S. Attorney's Office will continue to strive to protect Montanans' public health and safety and the environment for generations to come."
Complete, accurate and honest reporting is essential in order to protect the public when harmful toxins are released from facilities," said Jeffrey Martinez, Special Agent in Charge of EPA's criminal enforcement program in Montana. "Following a fire and release of hazardous substances, the defendant failed to notify the proper authority as required by law." "Today's sentence shows that this type of conduct will not be tolerated."
The investigation was conducted by the Environmental Protection Agency's Criminal Investigation Division.
Casselberry Man Sentenced to More Than 12 Years for Receiving Child PornographyRead the Press Release
Orlando, Florida - U.S. District Judge Roy B. Dalton, Jr. today sentenced Hal Chris Billerbeck (51, Casselberry) to 12 ½ years in federal prison for receipt of child pornography. The court also ordered Billerbeck to forfeit the electronic storage devices that he used to receive and possess the child pornography. As part of Billerbeck's sentence, the court ordered him to serve a 10-year term of supervised release, following his release from prison, and to register as a sex offender. Billerbeck pleaded guilty on November 2, 2012.
According to court documents, FBI agents executed a search warrant at Billerbeck’s home and found 99 pictures and 224 videos depicting child pornography. The majority of the photos and videos depicted the sexual abuse of girls between the ages of three and eleven years old. Billerbeck told agents that he had been downloading child pornography for the past twelve years. He also admitted that a state search warrant for child pornography was executed at his home in 2007. He said that the child pornography the state investigators located on the computers during the search belonged to him. In addition to receiving and viewing child pornography in his home, Billerbeck said that he also took the images he stored on a computer disk to his place of employment and viewed the child pornography on his work-issued laptop while at work.
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."
Bryan Chiropractor Convicted of Defrauding Automobile Insurance Companies of $3 MillionRead the Press Release
HOUSTON - A Bryan chiropractor has entered a plea of guilty to engaging in a conspiracy to defraud various automobile insurance companies of more than $3 million, United States Attorney Kenneth Magidson announced today.
Chase Lindsey, 34, is the co-owner of Lindsey Chiropractic Care located in Bryan. Today, he admitted he participated in a two-year conspiracy to defraud numerous auto insurance companies by allowing fraudulent chiropractic bills to be created under his name for treatments which were never performed and used as support for fraudulent settlement demand letters sent to auto insurance companies.
Lindsey entered into an agreement with the office manager of a law firm which represented clients allegedly injured in auto accidents. Lindsey agreed to provide medical evaluations of, and recommend treatment for, those patients in exchange for $2,000 in cash per month, which totaled approximately $58,000 during the course of the conspiracy.
For the clients he actually evaluated, Lindsey routinely recommended medically unnecessary therapeutic treatments. In some instances, Lindsey either never evaluated the patient or did so after the patient had already begun receiving treatments. The treatments, if done, were done by unlicensed, untrained and unqualified individuals whom Lindsey never supervised. Lindsey always prescribed the same six treatments but the patients usually received only two: ice/heat packs and electric stimulation. He prescribed the treatments be done 3-4 times per week for 5-6 weeks, but patients usually went once a week for 3-4 weeks. Lindsey also provided no follow-up treatments.
Lindsey and others used four chiropractic clinics in the scheme. Lindsey started working at the first clinic, Texas Avenue Chiropractic Clinic, in February 2007 and continued until it closed on or about Sept. 1, 2007. After that, Lindsey was listed as the only chiropractor at H & E Chiropractic and Private Chiropractic Care, two businesses also involved in the conspiracy. After Private Chiropractic Care shut down in September 2009, Lindsey and others agreed to continue the fraud scheme by sending the law firm clients to Lindsey Chiropractic Care - Lindsey's chiropractic clinic. Clients were sent there until search warrants were executed in November 2009.
Despite changing the name and location of the chiropractic clinic four times, the fraud scheme remained the same. Co-conspirators recruited individuals allegedly involved in auto accidents to be represented by the law firm who were then sent to Lindsey to be evaluated. Lindsey routinely prescribed medically unnecessary treatment which was provided, if at all, by unlicensed, untrained and unqualified individuals. Lindsey knew that most of the treatments were not being performed. Nonetheless, Lindsey allowed false and fraudulent chiropractic bills to be created under his name from each of the four clinics for treatments which were never performed.
The fraudulent bills were used as support for settlement demand letters sent to auto insurance companies which caused the insurance companies to issue settlement checks. Lindsey acknowledged the scheme to defraud the automobile insurance companies resulted in the submission of more than $3 million in false billing claims. The insurance companies paid at least $1.2 million in false claims during 2007-2009.
U.S. District Judge Kenneth Hoyt, who accepted the guilty plea, set sentencing for April 22, 2013. At that time, Lindsey faces up to 30 years in prison and a possible $1 million fine. As part of his plea agreement, Lindsey also agreed to pay restitution of $1.2 million to the insurance companies victimized by the scheme. Lindsey was permitted to remain on bond pending his sentencing.
The remaining defendants charged in relation to the conspiracy are set for trial on April 2, 2013.
The criminal charges are the result of a joint investigation by agents of the FBI and the National Insurance Crime Bureau. Assistant United States Attorney Al Balboni is prosecuting the case.
Bradenton Man Charged with Producing Child PornographyRead the Press Release
Tampa, FL - United States Attorney Robert E. O'Neill announces the filing of a criminal complaint charging Heriberto Pena Salazar (24, Bradenton) with production, transportation, receipt, and possession of child pornography. If convicted, Salazar faces a mandatory minimum of 15 years, up to 30 years in federal prison for the production offense. He faces a mandatory minimum of 5 years, up to a maximum of 20 years in federal prison for both the receipt and transportation charges, and up to 10 years for the possession charge.
According to the complaint, Salazar used his cell phone to produce a video of himself sexually abusing a prepubescent female child. He then allegedly distributed that video over the Internet. The complaint also alleges that Salazar posted child pornography to a foreign image board on the Internet. According to the complaint, Salazar is from Mexico and is illegally present in the United States.
A criminal complaint is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), U.S. Immigration and Customs Enforcement's (ICE) Enforcement and Removal Operations (ERO), the Florida Department of Law Enforcement (FDLE), the Manatee County Sheriff's Office, and the Bradenton Police Department. It will be prosecuted by Assistant United States Attorney Jennifer L. Peresie.
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."
Baltimore Man Indicted in Mortgage Fraud Scheme Allegedly Resulting in over $2.5 Million in Losses from Fraudulently Obtained LoansRead the Press Release
Baltimore, Maryland - A federal grand jury indicted Joshua S. Goldberg today on charges of conspiracy to commit and committing wire fraud in connection with a mortgage fraud scheme in which fraudulent loans were obtained on at least five properties.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Inspector General Steve A. Linick of the Federal Housing Finance Agency Office of Inspector General; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.
According to three-count indictment, from 2004 through 2008, Goldberg controlled Worthington Mortgage Group, LLC, a mortgage brokerage company which operated from offices on Gough Street in Baltimore. The indictment alleges that beginning in 2004, Goldberg conspired with Kenneth Koehler, a former business partner, David Christian, a licensed appraiser, and others, to obtain loans for Worthington Mortgage clients, including the co-conspirators, by submitting false and misleading appraisals, false bank account information, fictitious employment information and false monthly income figures. The indictment alleges that the scheme resulted in multiple loan defaults, foreclosures and loan losses to mortgage companies and financial institutions of more than $2.5 million.
Specifically, the indictment alleges that Goldberg arranged with Koehler to falsely verify the employment or income information supplied on the loan application, if called upon by the lender. Goldberg also arranged for Christian to provide false and misleading appraisals by telling Christian the dollar value to place on a property and to change the appraisal if it was too low, as well as to misrepresent the condition and physical characteristics of the property. In addition, Goldberg had Koehler, who was selling three of his properties to other co-conspirators, conceal the true purchase price of properties from the lenders, by signing the HUD-1 stating that he had received a substantial down payment from the buyers, when in fact no such payments had occurred and by kicking back part of the sales proceeds from each loan to the buyers. By concealing the true sales price for the properties, the conspirators manipulated the lenders into funding more than 100% of the purchase price, which exposed the lenders to a greater risk of loss than they anticipated.
Goldberg faces a maximum sentence of 30 years in prison and a fine of $1 million for the conspiracy and for wire fraud affecting a financial institution. Goldberg is believed to be a fugitive.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Kenneth Koehler, age 42, of Baltimore, and David C. Christian, age 62, of Catonsville, Maryland, each previously pleaded guilty to conspiracy to commit wire fraud and are awaiting sentencing.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage-Fraud/index.html.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI, Federal Housing Finance Agency - Office of Inspector General, and U.S. Postal Inspection Service. Mr. Rosenstein thanked Assistant U.S. Attorney Gregory R. Bockin, who is prosecuting the case.
Arizona Man sentenced to five years in prison for drug cultivationRead the Press Release
Fairbanks, Alaska-U.S. Attorney Karen L. Loeffler announced today that an Arizona man was sentenced in federal court in Fairbanks, Alaska, on Friday, January 18, for two counts of drug trafficking.
Nathanael Harshman, 20, formerly of Fairbanks, Alaska, and recently from Tucson, Arizona, was sentenced by Chief United States District Court Judge Ralph R. Beistline to 60 months in prison, to be followed by four years of supervised release.
According to Assistant U.S. Attorney Stephen Cooper, who prosecuted the case, Harshman was one of several persons involved in a cooperative venture to manufacture marijuana and to possess it with intent to distribute by selling. Harshman pled guilty to conspiracy and also to one count of manufacturing the drug.
In entering the sentence, the judge found that Harshman had participated in cultivating more than one thousand marijuana plants in order to produce the marijuana intended for sale. The court also found that he had possessed hand guns and ammunition in connection with this commercial operation.
Ms. Loeffler commends the Drug Enforcement Administration and the Alaska Statewide Drug Enforcement Unit for the investigation of this case.
Additional Charges Filed Against Charter School Founder and Co-defendantsRead the Press Release
PHILADELPHIA – A superseding indictment was filed today against Dorothy June Brown, 75, of Haverford, Pennsylvania, charging her and with two additional counts of wire fraud and one additional count of obstruction of justice in connection with schemes to defraud three charter schools of more than $6.7 million. Charged with Brown in the 67-count superseding indictment are Joan Woods Chalker, 74, of Springfield, Pennsylvania, Michael A. Slade, Jr., 31, of Philadelphia, Pennsylvania, Courteney L. Knight, 65, of King of Prussia, Pennsylvania, and Anthony Smoot, 50, of New Castle, Delaware.
All five defendants were previously named in a 62-count indictment, filed on July 24, 2012. The original indictment alleges that Brown used her private management companies, Cynwyd Group and AcademicQuest, to defraud the Agora Cyber Charter School (“Agora”) and the Planet Abacus Charter School (“Planet Abacus”) soon after she founded the schools in 2005 and 2007, respectively. Brown is also charged with defrauding the Laboratory Charter School of Communication and Languages (“Laboratory”), a school she founded in 1997, by using Laboratory funds to pay the wages of an employee at one of Brown’s private management companies.
The new indictment includes an additional wire fraud scheme alleging that Brown and Chalker caused Laboratory to pay them approximately $214,095 in compensation that they were not entitled to receive. It further alleges that Brown and Chalker obstructed justice by fabricating Laboratory records and policies to make it falsely appear as if they were owed the payments from Laboratory due to unused vacation and sick time. The superseding indictment also includes new charges that Slade and Knight obstructed justice by fabricating board resolutions of Laboratory and another school, the Ad Prima Charter School.
Each of the wire fraud and obstruction of justice counts carry a maximum possible sentence of 20 years in prison. If convicted, the defendants face substantial terms of imprisonment and significant fines and other financial penalties.
This case was investigated by the United States Department of Education - Office of Inspector General and the Federal Bureau of Investigation. The Philadelphia Controller's Office provided assistance. It is being prosecuted by Assistant United States Attorney Anthony Kyriakakis.Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525
21 January 2013
Wheeling Man Convicted for Illegal Possession of A FirearmRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistDefendant alleged to have Fired Shot after Fight
WHEELING, WEST VIRGINIA - A Wheeling man may be headed back to federal prison after admitting to the illegal possession of a firearm as part of a shooting incident that occurred last summer.
U.S. Attorney William Ihlenfeld, II, announced that CORDALE A. WILLIAMS, 32 years old, entered a plea of guilty in federal court today to the charge of “Felon in Possession of a Firearm” resulting from an incident that occurred last June at the 7-11 convenient store on Market Street in Wheeling. WILLIAMS was recently released from prison after serving time for a federal drug trafficking conviction and was still on supervised release at the time of his latest crime.
According to testimony offered at the plea hearing this morning, Wheeling Police officers responded to a gunshot being fired after midnight on June 22, 2012, outside of the 7-11 store and upon arrival learned that WILLIAMS had been in a fight with another man over a woman. Officers learned that at some point in time during the fight WILLIAMS obtained a gun from a friend and then fired it at the person with whom he had been fighting, but failed to strike the man. WILLIAMS then chased after the man before coming came back to the 7-11 and dropping the firearm on the ground. Much of the incident was captured by a surveillance camera that was located in the area.
Due to his prior conviction for “Possession with Intent to Distribute Crack Cocaine within
1000 feet of a School” WILLIAMS was not permitted to possess a firearm.WILLIAMS faces up to ten years in prison for his conduct, as well as the possibility of additional prison time for violating the terms of his supervised release. He was remanded to the custody of the United States Marshal pending the scheduling of a sentencing hearing by Judge Frederick P. Stamp, Jr.
The case was prosecuted by U.S. Attorney Ihlenfeld and Assistant U.S. Attorney Jarod J. Douglas. It was investigated by the Wheeling Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Baltimore Immigration Judge Participates in Naturalization CeremonyRead the Press Release
BALTIMORE --Immigration Judge John F. Gossart, Jr. from the Executive Office for Immigration Review, Baltimore Immigration Court, delivered the keynote speech and administered the oath of allegiance to approximately 75 candidates during a naturalization ceremony at the George H. Fallon Federal Building in Baltimore, Md., on Jan. 18, 2013. The Baltimore District Office of U.S. Citizenship and Immigration Services, Department of Homeland Security, hosted the ceremony.
Biographical Information
Attorney General William French Smith appointed Judge Gossart in October 1982. Judge Gossart received a bachelor of science degree in 1967 from the University of Maryland and a juris doctorate in 1974 from the University of Baltimore School of Law. From 1975 through 1982, he served in various positions at the former Immigration and Naturalization Service, including general attorney, trial attorney, and deputy assistant commissioner for naturalization. Since 1997, Judge Gossart has served as an adjunct professor of immigration law at the University of Baltimore School of Law; has been a faculty member at the National Judicial College; and has guest lectured at numerous law schools and for the Maryland Institute for Continuing Professional Education of Lawyers. From 1967 to 1969, he served in the U.S. Army. Judge Gossart is a member of the Maryland State and District of Columbia Bars.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Executive Office for Immigration Review
18 January 2013
Woodbury Woman Sentenced for Using Two Identities to Receive HUD Tax Credits FraudulentlyRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 53-year-old Woodbury woman was sentenced for using an alternative identity to receive, among other things, more than $18,000 in Low Income Housing Tax Credits (“LIHTC”) from the United States Department of Housing and Urban Development (“HUD”).
United States District Court Judge Joan N. Ericksen sentenced Victoria Ayoola to two years of probation on one count of social security fraud and one count of making false statements. In addition, Ayoola was ordered to pay $18,114 in restitution. Ayoola was indicted on July 10, 2012, and pleaded guilty on August 23, 2012.
Following today’s sentencing, Michael Feinberg, Special Agent in Charge of U.S. Immigration and Customs Enforcement-Homeland Security Investigations’ St. Paul Field Office (“ICE HSI”), said, “This type of fraud poses serious security vulnerability, one that often contributes to a host of other crimes – including identity theft and financial fraud. Targeting schemes like this that enable individuals to obtain fraudulent U.S. identity documents is a top priority for ICE HSI, and we are committed to working with our law enforcement partners to detect, investigate, and dismantle this type of activity.”
In the plea agreement, Ayoola admitted that she applied for and received a social security card under the name Oluremi George on November 19, 1996. On the application, Ayoola indicated to the Commissioner of Social Security that she had never before been issued a social security number. However, Ayoola knew she already had a social security number under the name Victoria Ayoola, issued on November 26, 1991.
Since 1996, Ayoola has used both social security numbers and identities to apply for and renew Minnesota identification cards and driver’s licenses, seek and obtain employment, and file federal and state tax returns. George also used the false identity to receive a lower monthly housing rental rate by qualifying for a LIHTC rental unit at Pondview Townhomes in Woodbury.
Pondview is a low income housing development that provides housing assistance to its residents through the use of HUD loans and funds as well as through LIHTCs. To be eligible to live in one of the units, a person must make less than the federal annual tax credit income limit. In 2011, that limit for Washington County, Minnesota, was $35,280. In an effort to qualify for the subsidized housing unit, George certified that her anticipated 2011 income would be $30,930, even though she knew it would be approximately $55,887.13.
Ayoola’s fraud has resulted in more than $18,000 in underpayments of rent since 2004.
This case was the result of an investigation by ICE HSI and its Document and Benefit Fraud Task Force, the Social Security Administration’s Office of Inspector General, HUD’s Office of Inspector General, the U.S. State Department’s Diplomatic Security Service, and the Minnesota State Patrol, with assistance from the Minnesota Secretary of State’s Office. It was prosecuted by Assistant U.S. Attorney Andrew Dunne.Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary L. Hatton
www.usdoj.gov/usao/inn/ Fax: (219) 852-2770
South Bend, Indiana -- The United States Attorney’s Office announced today that:
PLEAS:
Jeffrey Cripe, 38, of Elkhart, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of distribution of child pornography.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation.Sentencing has been set for 4/18/13.These charges were filed as a result of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Indiana State Police.This case is being prosecuted by Assistant United States Attorney John Maciejczyk.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Paul Minix, 49, of Winamac, Indiana, was sentenced by District Judge Robert Miller, Jr. to 51 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.According to documents filed by the government in this case, Minix has been convicted of seven felony offenses and 10 misdemeanor convictions.This case was the result of an investigation by the by the Bureau of Alcohol, Tobacco, Firearms and Explosive.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ FAX (219) 852-2770
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Robert Lockhart, 20, of East Chicago, Indiana, a defendant in the case US v Briseno et al., pled guilty before Chief Judge Philip Simon to the felony offense of conspiracy to participate in racketeering activity. This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the East Chicago Police Department, and the Federal Bureau of Investigation, with assistance from the Gary Police Department, the Hammond Police Department and the Lake County HIDTA.The case is being prosecuted by Assistant United States Attorney David J. Nozick.
Jeremiah Stevenson, 22, of Gary, Indiana, a defendant in the case US v Elmore et al., pled guilty before Senior District Judge Rudy Lozano to the felony offenses of robbery and use of a firearm in furtherance of a robbery.Sentencing has been set for 4/11/13.These charges were filed as a result of an investigation by the Federal Bureau of Investigation, the East Chicago Police Department, the Hammond Police Department, the Gary Police Department and the Merrillville Police Department.This case is being prosecuted by Assistant United States Attorney Dean Lanter.
Lavelle Hatley, 18, of Gary, Indiana, a defendant in the case US v Elmore et al., pled guilty before Senior District Judge Rudy Lozano to the felony offense of robbery.Sentencing has been set for 4/11/13.These charges were filed as a result of an investigation by the Federal Bureau of Investigation, the East Chicago Police Department, the Hammond Police Department, the Gary Police Department and the Merrillville Police Department.This case is being prosecuted by Assistant United States Attorney Dean Lanter.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Cesar Yepez, 32, of Chicago, Illinois, was sentenced by Chief Judge Philip Simon to 1 day imprisonment considered time served as of the date of Yepez’ arrest and 2 years of supervised release, to include 12 months of home detention, after pleading guilty to the felony offense of conspiracy to distribute cocaine.This case was the result of an investigation by the Drug Enforcement Administration HIDTA Task Force.This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Kevin Weston, 34, of Hammond, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 45 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.According to documents filed by the government in this case, law enforcement officers entered Weston’s residence to execute a state search warrant. Weston admitted to hiding the firearm when he heard officers entering the house. Weston also told the officers where they could find the magazine for the firearm. The defendant has two prior convictions for controlled substance offenses (manufacture/delivery of a controlled substance) and a prior conviction for possession of a controlled substance. He also has misdemeanor convictions for battery and domestic battery and a large number of prior arrests. This case was the result of an investigation by the by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hammond Police Department.This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Efrain Hernandez, 28, of Cicero, Illinois, was sentenced by Chief Judge Philip Simon to 78 months imprisonment and 5 years of supervised release after pleading guilty to the felony offense of conspiracy to distribute and distribution of methamphetamine.This case was the result of an investigation by the Drug Enforcement Administration and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.This case was prosecuted by Assistant United States Attorney Joshua Kolar.
Frederick Rivera, 39, of Gary, Indiana, was sentenced by District Judge Robert Miller, Jr. to 52 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of distribution of crack cocaine.According to documents filed by the government in this case, Rivera made three cocaine base sales to a confidential informant while on supervised release for a prior narcotics trafficking conviction.This case was the result of an investigation by the Drug Enforcement Administration. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Virginia Man Pleads Guilty to Assaulting 10-Year-Old Child in September 2012 Attack on A Bus-Defendant Assaulted A Police Officer in Unrelated Incident on the Same Day-Read the Press Release
WASHINGTON – Donato Richardson, 34, of Roanoke, Va., has pled guilty to physically and sexually assaulting a child on a Greyhound bus and to assaulting a police officer in an unrelated incident on the same day, U.S. Attorney Ronald C. Machen Jr. announced today.
Richardson pled guilty on Jan. 14, 2013 in the Superior Court of the District of Columbia to one count each of attempted second-degree child sexual abuse, attempted second-degree cruelty to children, and assault on a police officer. He is to be sentenced by the Honorable Russell F. Canan on March 20, 2013. Richardson faces up to five years in prison for attempted second-degree sexual abuse and up to 180 days of incarceration for each of the other charges. Following his prison term, Richardson will be required to register as a sex offender for 10 years.
At the plea hearing, Richardson admitted that on Sept. 19, 2012, he boarded a Greyhound bus at the Washington D.C. terminal in Northeast Washington. The bus was en route to Richmond, Va. The victim, a 10-year-old boy, was already on the bus and sitting by himself in a window seat behind the bus driver. The child’s mother was sitting two rows behind him on the other side of the aisle. The bus left the terminal about 2 a.m., and shortly afterward Richardson leaned over the boy and asked who was watching him. Richardson then unzipped the child’s pants and sexually assaulted him. The boy pushed Richardson’s hand away and told him to stop. Richardson then grabbed the boy's sweatshirt collar and neck. The boy attempted to resist and waved his hands to attract attention.
Other passengers and the bus driver noticed the commotion. The bus driver began to slow down and pull to the shoulder of the road on the 14th Street Bridge. Richardson then opened the emergency exit window, jumped out, and ran away from the bus as the startled passengers and bus driver watched. The bus driver called 911. Law enforcement officers, including Arlington County, Va., Police and the U.S. Park Police, responded and canvassed for the suspect based on the description provided by the witnesses, but were unable to locate him.
The defendant’s identity was developed by the Metropolitan Police Department (MPD) through the subsequent investigation, and an arrest warrant was issued for Richardson.
In an unrelated incident, at about 5:20 p.m. on Sept. 19, Richardson was observed in the area between 9th and 10th Streets and Pennsylvania Avenue NW, in front of the Robert F. Kennedy Justice Building, making lunging and swiping motions at pedestrians and pulling on doors of vehicles in the street. Security officers for the Department of Justice were notified and approached Richardson to investigate this behavior.
When approached by the security officers, Richardson ran, jumped on the roof of a vehicle on Pennsylvania Avenue, and landed on the other side. Richardson was ultimately stopped by security officers in the area of 11th Street and Pennsylvania Avenue NW. When the officers attempted to restrain him, Richardson assaulted the officers, including a Special Deputy U.S. Marshal. Richardson was placed under arrest for this assault.
In announcing the plea, U.S. Attorney Machen acknowledged the work of the MPD’s Youth Investigations Division and the other agencies that investigated the case. He also praised the work of Victim-Witness Advocate Lezlie Richardson, Victim-Witness Specialist Katina Adams-Washington, William Hamann of the Criminal Investigations Unit, Paralegal Specialist Jason Manuel and Legal Assistant Tanisha Nelson. Finally, U.S. Attorney Machen commended Assistant U.S. Attorney Amy H. Zubrensky, who investigated and prosecuted the case.
13-018VRE Manager Sentenced to 24 Months for Accepting More Than $350,000 in BribesRead the Press Release
ALEXANDRIA, Va. – Kevin Wirth Jannell, 49, of Fredericksburg, Va., was sentenced today to 24 months in prison, followed by two years of supervised release, for taking more than $350,000 in bribes to ensure a Virginia Railway Express (VRE) subcontractor would be retained by VRE.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Debra Evans Smith, Acting Assistant Director in Charge of the FBI’s Washington Field Office; and Kathryn Jones, Regional Special Agent in Charge for the Department of Transportation Office of Inspector General, made the announcement after sentencing by United States District Judge Leonie M. Brinkema.
In addition to the 24-month sentence, the court ordered Jannell to forfeit $357,000 and provide 100 hours of community service.
“Bribes should never be just another cost of doing business with the government,” said U.S. Attorney MacBride. “Kevin Jannell abused his position by padding his paycheck each month and playing favorites in a contracting process that should be honest and transparent. Today’s sentence will go a long way toward rebuilding the public’s trust and demonstrating that those who corrupt the contracting process will spend years in prison paying for their crimes.”
“Mr. Jannell held a position of trust in which he was expected to impartially oversee contracts for upkeep and maintenance of VRE facilities. Instead, he took money to improve his own standing and corrupted the contracting process,” said Acting Assistant Director in Charge Smith. “Government corruption at any level is the FBI’s top criminal priority, and the Washington Field Office continues to demonstrate that we will investigate and pursue all those who choose to use their official position for personal gain.”
Jannell pled guilty on Sept. 27, 2012, to bribery concerning programs receiving federal funds. A former facilities manager for VRE, Jannell provided oversight of VRE contracts for individuals and companies providing landscaping and maintenance of VRE stations and facilities. Beginning in 2003, Jannell accepted monthly payments of up to $4,000 in return for giving favorable evaluations that would ensure an individual and this person’s company would be retained as a subcontractor for VRE.
Jannell concealed the bribes by creating a nominee company and sent monthly invoices to the subcontractor from that company, falsely billing the company for services that were never rendered. The forfeiture order states that Jannell received $357,000 in proceeds from his crime.
Authorities request that anyone with information regarding this case or similar allegations of fraud or corruption to call the FBI’s Northern Virginia Public Corruption and Government Fraud Tip Line at (703) 686-6225 or send an email to: [email protected].
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.
This ongoing investigation was initiated by FBI’s Washington Field Office and the Department of Transportation’s Office of Inspector General. Assistant United States Attorneys Mark Lytle and Jasmine Yoon from the U.S. Attorney’s Office for the Eastern District of Virginia’s Financial Crimes and Public Corruption Unit are prosecuting the case on behalf of the United States.Used Motor Vehicle Dealers Indicted in Philadelphia for Odometer TamperingRead the Press Release
A federal grand jury in Philadelphia unsealed an indictment yesterday charging Kyle Novitsky, 45, and Judith Aloe, 52, both of North Miami Beach, Fla., with making false odometer statements, securities fraud and conspiracy to commit these offenses, the Justice Department announced today. According to the indictment, as early as 2004, and through at least 2010, the defendants devised a scheme to defraud buyers of used motor vehicles by misrepresenting the mileage of approximately 247 vehicles they sold.
As part of the scheme, the indictment charges that Novitsky and Aloe purchased high-mileage, used motor vehicles in Florida, California and elsewhere from a national vehicle leasing company. The defendants are charged with conspiring to alter the odometers in these vehicles to reflect false, lower mileage. The indictment alleges that Novitsky and Aloe then fraudulently altered the motor vehicle titles and sales documentation associated with these vehicles to reflect the false, lower mileage. As a result, the commonwealth of Pennsylvania issued motor vehicle titles reflecting this false, low er mileage, which the defendants knew to be untrue.
Novitsky and Aloe subsequently sold the motor vehicles at wholesale automobile auctions in Manheim, Pa., and elsewhere, and provided to the buyers Pennsylvania titles bearing the lower false mileage. The indictment alleges that in some instances, the true mileage of the vehicle was greater than 100,000 miles more than what the title indicated, and as a result of selling the vehicles with false, lower mileages, the defendants received higher sales prices for the vehicles they sold.
“Mileage information is important for consumers to assess the value and safety of the vehicles they purchase,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Civil Division of the Department of Justice. “Automobile purchases are one of the biggest investments consumers make, and false odometer statements can cause the buyers of these vehicles to lose thousands of dollars of their hard-earned money. In these difficult economic times, we take seriously our obligation to prosecute those who engage in this serious form of fraud.”
The charges in the indictment are only allegations, and the defendants are presumed innocent unless and until proven guilty. Principal Deputy Assistant Attorney General Delery thanked the Office of Odometer Fraud Investigation at the National Highway Traffic Safety Administration, U.S. Department of Transportation, for their assistance in investigating and prosecuting this case
U.S. Attorney Reports to White Center Community on 'Hot Spot' InitiativeRead the Press Release
U.S. Attorney Jenny A. Durkan reported to the White Center Community today about law enforcement efforts to enhance the safety of the community. In the fall of 2011, White Center was the focus of a coordinated 'Hot Spot' initiative, designed to bring concerted law enforcement and community resources together in one geographic area.
The multi-agency, federal and local law enforcement operation, called “Center of Attention,” that ended in late October 2011, focused on violent offenders who used White Center to engage in criminal activity. The King County Prosecutor’s Office and the U.S. Attorney’s Office have been working hard with our law enforcement partners to bring those offenders to justice.
Among the 25 federal defendants, nearly all have now been convicted and sentenced. Two dozen have pleaded guilty or were convicted at trial, including the successful prosecution of an armed career criminal just before the end of the year. That defendant, Michael Gradney, faces a 15-year mandatory minimum sentence.
To date, 21 defendants have been sentenced to prison, including significant prison time for defendants selling large amounts of dangerous drugs and firearms. In fact, the total amount of prison time that judges have imposed on the federal Center of Attention defendants is nearly 1400 months, or 115 years.
Here are two of the press releases announcing significant sentences:
http://www.justice.gov/archive/usao/waw/press/2012/November/rosas-martinez.html http://www.justice.gov/archive/usao/waw/press/2012/November/magna.html
Of the 26 state prosecutions, some have resulted in guilty findings while many are still pending. State prosecutors are pursuing convictions and sentences in line with the goals of “Center of Attention.”
In addition to “Center of Attention” defendants, the owner of the former G.A.M.E. marijuana lounge pleaded guilty to a federal felony and was sentenced to six months of federal probation. Federal probation is very rigorous, with close supervision by a federal probation officer and the possibility of prison time for up to three years if the defendant does not follow the probationary conditions. Judge Ricardo Martinez indicated he would be watching very closely to ensure the owner of G.A.M.E. did not violate any conditions of his probation.
And, just last week, as part of our ongoing enforcement efforts, prosecutors in our office convicted a man who committed an armed robbery of the Chase bank located at SW 100th Street and 16th Avenue.
Your can read the U.S. Attorney's Letter to the community here: white_center_ltr.pdf
Two Southwest Washington Men Sentenced to Long Prison Terms for Methamphetamine TraffickingRead the Press Release
Two Southwest Washington men who trafficked more than three pounds of highly pure methamphetamine were each sentenced today to more than 10-years in prison, announced U.S. Attorney Jenny A. Durkan. STEVEN MCCRACKEN, 32, of Kelso, Washington and JESUS RAMIREZ-LUCIO, 33, of Washougal, Washington were each sentenced to 14 years in prison and five years of supervised release. The men were convicted of conspiracy to distribute methamphetamine in October 2012, following a six day jury trial. RAMIREZ-LUCIO was also convicted of distribution of methamphetamine, and MCCRACKEN was convicted of possession of methamphetamine with intent to distribute. At sentencing U.S. District Judge Ronald B. Leighton said, “Methamphetamine destroys families. The community has a right to protect itself from those who would ply them with methamphetamine.”
According to records filed in the case and testimony at trial, a person working with police alerted members of the Clark Vancouver Regional Drug Task Force that MCCRACKEN and RAMIREZ-LUCIO were planning the drug deal. The men met at a Kelso, Washington home on March 25, 2011, where MCCRACKEN paid RAMIREZ-LUCIO more than $34,000 for three pounds of methamphetamine. After the drug deal, both men were followed by law enforcement as they left the house. Police pulled MCCRACKEN over on I-5. As the law enforcement officer approached the driver’s window, MCCRACKEN pulled out into traffic, leading police on a chase at speeds up to 90 MPH. On the Route 432 bridge, MCCRACKEN pulled to the side of the road, left the car running and threw bags of methamphetamine into the Cowlitz River. MCCRACKEN was arrested, and other officers retrieved bags of meth floating in the river. Some of the meth was damaged, but one of the bags was intact. RAMIREZ-LUCIO was arrested as he traveled back to Vancouver with more than $34,000 in cash in a shopping bag in his car. In a search of RAMIREZ-LUCIO’s home police recovered four firearms and a marijuana grow with more than 700 plants.
MCCRACKEN has been convicted three prior times in state court for distributing methamphetamine: Cowlitz County Superior Court, 1999; Clark County Superior Court 2002 and Josephine County Circuit Court (Oregon) 2006.
The case was investigated by the FBI’s Safe Streets Task Force, which includes officers from the FBI and the Vancouver Police Department, the Cowlitz-Wahkiakum Narcotics Task Force, which includes officers from the Kelso Police Department and the Cowlitz County Sheriff’s Office, among others, and the Clark Vancouver Regional Drug Task Force.
The case was prosecuted by Assistant United States Attorneys Brian Werner and Michael Lang.
Two Plead Guilty in Federal Court to Illegally Manufacturing Cigarettes on the St. Regis Mohawk ReservationRead the Press Release
Richard S. Hartunian, United States Attorney, Northern District of New York, Eric T. Schneiderman, New York State Attorney General, and Joseph Anarumo, Jr., the Special-Agent-in- Charge of the New York Field Office of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) announced today that Robert C. Oliver, Sr., 53, of Burke, New York, and Jody Swamp, 48, of Hogansburg, New York, pled guilty in U.S. District Court in Utica, New York, to federal charges relating to illegally manufacturing cigarettes on the St. Regis Mohawk Reservation, known as Akwesasne. Each defendant pled guilty to one count charging Manufacturing Cigarettes Without Filing the Bond and Obtaining the Required Permit, in violation of 26 U.S.C. § 5762(a)(1) (Count 1), and one count charging Failure to Maintain Records Concerning the Shipment, Receipt, Sale, and Distribution of Cigarettes, in violation of 18 U.S.C. § 2343(a) (Count 2).
The pleas were entered before U.S. District Court Judge David N. Hurd. Count 1 carries a statutory maximum sentence of imprisonment for up to 5 years, a fine of up to $250,000, a term of supervised release of up to 3 years, and a special assessment of $100. Count 2 carries a statutory maximum sentence of imprisonment for up to three years, a fine of up to $250,000, a term of supervised release of up to three years, and a special assessment of $100. If the terms of the plea agreements signed by the defendants are accepted by the Court, each defendant will be sentenced to a term of imprisonment within the range of 24 to 30 months, to be followed by supervised release for 3 years, a fine of up to $250,000, forfeiture in the amount of $5,000,000 (with $1,000,000 to be paid by the time of sentencing), and a special assessment of $200. Sentencing is scheduled for August 3, 2013, before Judge Hurd in Utica, New York. The defendants were released on their own recognizance pending sentencing.
The defendants admitted that: Between July of 2010 and October of 2011, the defendants manufactured cigarettes on Akwesasne without the required permit from the Alcohol and Tobacco Tax and Trade Bureau of the U.S. Department of the Treasury and failed to pay the federal excise tax of approximately $10 for each carton of cigarettes produced. The defendants had scores of shipments exceeding 10,000 cigarettes made to locations elsewhere in New York, and to Florida and Maine, all without complying with federal record-keeping requirements so they could evade payment of the federal excise tax. At least 2,556 cases totaling 76,680 cartons of unlicensed cigarettes were shipped from a property on Frogtown Road on Akwesasne. The $5,000,000 forfeiture represents the amount of profit realized by the defendants from their illegal cigarette manufacturing.
United States Attorney Hartunian said, “Each year, the United States loses millions of dollars in federal excise taxes as a result of unlicensed cigarette manufacturing operations on Akwesasne. Manufacturers who do not pay their excise taxes have an unfair advantage over licensed manufacturers on and off Akwesasne, as they can charge lower prices and reap substantial extra profits. The U.S. Attorney’s Office will continue its work with federal and tribal authorities to bring unlicensed cigarette manufacturing operations on Akwesasne into compliance with federal regulations. We appreciate very much the cooperation and outstanding work in this case by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New York State Attorney General’s Office.”
Attorney General Schneiderman said, “Illegally manufacturing tobacco products is a crime that hurts law abiding businesses and the health of our communities. These guilty pleas will bring accountability for a scheme that had many victims. I would like to thank U.S. Attorney Hartunian and our partners in law enforcement who have worked with us to root out this unlawful criminal enterprise. Together, we will remain vigilant to ensure there is one set of rules for everyone and that those rules are vigorously enforced.”
ATF Special-Agent-in-Charge Anarumo, Jr. said, “I would like to formally recognize United States Attorney Richard S. Hartunian and our federal, state and local law enforcement partners. This case demonstrates the cooperative efforts needed to combat large scale contraband tobacco trafficking. ATF remains committed to protecting the citizens of New York State. Our agency will continue to work together and in conjunction with the United States Attorney’s Office for the Northern District of New York to eliminate the illegal manufacture and distribution of tobacco products.”
The indictment resulted from an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Internal Revenue Service, U.S. Customs and Border Patrol, Immigration and Customs Enforcement, the New York State Police, and the Petroleum, Alcohol, and Tobacco Bureau of the New York State Department of Taxation and Finance. The case is being prosecuted by Assistant United States Attorney Kevin P. Dooley of the Binghamton office, and Assistant Attorney General Meryl Lutsky of the New York Attorney General’s Office, who was cross-designated as a Special Assistant U.S. Attorney for this case. Inquiries can be directed to AUSA Dooley at (607) 773-2887.
Two Charlotte Men Sentenced to Prison for Operating Separate Ponzi SchemesRead the Press Release
The Defendants Falsely Promised Victims Huge Profits From Trading In The Commodities Futures Market
CHARLOTTE, N.C. – Two Charlotte men were sentenced late Thursday, January 17, 2013, for carrying out two separate Ponzi schemes involving trading in the commodities futures market, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
Joining U.S. Attorney Tompkins in making today’s announcement are Roger A. Coe, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and North Carolina Secretary of State Elaine F. Marshall.
Mitchell Huffman
Mitchell Brian Huffman, 52, of Charlotte, was sentenced by Chief U.S. District Court Judge Robert J. Conrad, Jr. to serve 60 months in prison, followed by three years of supervised release. Huffman was also ordered to pay restitution to his victims, the final amount of which will be determined by the Court within 60 days. During the sentencing hearing, Judge Conrad also ordered the defendant to forfeit approximately $2.5 million the Court deemed as proceeds of Huffman’s criminal conduct.
In September 2011, Huffman pleaded guilty to engaging in a $2.5 million Ponzi scheme. According to filed court documents and court proceedings, from 2006 through in or about March 2011, Huffman raised approximately $3.2 million dollars from his victims by falsely claiming that he was generating annual rates of return between 100% to 150% using his proprietary trading program to trade in the commodities futures market.
Based on information in court documents and court proceedings, Huffman directed his victims to transfer their funds to his personal bank account. Court records show that of the $3.2 million Huffman fraudulently obtained from his victims, he only utilized a little over 50% of the funds (approximately $1.7 million) to engage in trading activities. To conceal the fraudulent scheme, Huffman generated bogus monthly statements to his victims which falsely reflected fictitious profits from trading activities, when in fact Huffman sustained massive losses. During this time, Huffman made also Ponzi payments of approximately $834,160 to victim investors, falsely representing that these payments were profits from trading activity.
Huffman also used the victims’ funds, without their knowledge or consent, for personal expenses, including to purchase multiple vehicles, take luxurious vacations, and to make charitable contributions.
At the sentencing hearing, Judge Conrad said that Huffman took away “retirements, college educations funds and houses” from his victims and caused them to go through “financial hardships and depression.”
Robert Moss
Robert S. Moss, 49, also of Charlotte, was sentenced to 57 months in prison followed by three years of supervised release, and was ordered to pay $1,460,121 as restitution. Moss pleaded guilty in September 2011 to one count of commodities fraud, for engaging in a $1.5 million Ponzi scheme. From at least in or about 2001 through in or about February 2009, Moss solicited investments totaling approximately $3.1 million from victims nationwide. Court records show that Moss lured his victims by falsely claiming that he was generating substantial profits through options trading in the commodities futures market. Filed documents indicate that Moss told his victims that he had not had a losing year trading since 1993, that he generated annual returns of between 22% and 41% annually, and that none of his investors had ever lost any capital. In fact, between 2003 and 2009, Moss suffered losses of $342,264 in the commodities futures market. Moss also advised the victims that his liquid assets were more than three times the size of his trading account when in fact they were not.
According to filed documents and statements made during court proceedings, in exchange for their investment Moss provided his victims with promissory notes either guaranteeing annual rates of return of 16 to 18%, or a variable rate tied to the level of Moss’ trading profits. To conceal his scheme, Moss made Ponzi payments to his victims totaling $1.6 million and falsely represented that these payments were the result of successful trading profits. In addition, Moss unlawfully used money invested by the victims for personal expenditures such as mortgage payments, groceries, and other household expenses.
Both Huffman and Moss have been ordered to self-report to the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation of Huffman was handled by the FBI. The investigation of Moss was handled by the FBI and the Securities Division of the N.C. Secretary of State’s office. U.S. Attorney Tompkins also acknowledges the invaluable assistance of the Commodities Futures Trading Commission in both cases.
Both cases are related to the work of Charlotte’s Securities and Financial Crimes Task Force, a group made up of the FBI, the securities division of the N.C. Secretary of State’s office, the N.C. Attorney General's Office, the IRS criminal division, the U.S. Postal Inspection Service, the Mecklenburg County District Attorney's Office, the Securities and Exchange Commission, and the U.S. Attorney’s Office. The multi-agency Task Force promotes collaboration between the agencies in the fight against corporate fraud, insider trading, accounting fraud, market manipulation schemes, and other finance-related crimes.
The prosecutions were handled by Assistant United States Attorney Mark T. Odulio, of the U.S. Attorney’s Office in Charlotte.
Tonawanda Woman Sentenced on International Parental Kidnaping ChargesRead the Press Release
BUFFALO, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that Jacqueline Bontzolakes, 38, of Tonawanda, N.Y., who was convicted after a jury trial of international parental kidnaping and making a false statement on a passport application, was sentenced to 18 months in prison, by U.S. District Judge Bill Wilson.
According to Special Assistant U.S. Attorney Fauzia K. Mattingly and Assistant U.S. Attorney Eric M. Opanga, who handled the prosecution of the case at trial, Bontzolakes took two minor children out of the country in violation of the custody arrangements set by the Erie County Family Court and without the knowledge or permission of their fathers. The defendant also concealed the identity of the father of one of the minor children in applying for a passport for that child. Through the efforts of Homeland Security Investigations agents and officials of the Diplomatic Security Service of the U.S. Department of State, Bontzolakes was returned to the U.S. and arrested in Miami, Florida, on March 24, 2010. The two minor children were located and reunited with their fathers.
"Today's sentence is just punishment for a person who kidnaped her own children and kept them away from the lawful, court designated guardian, in this case their fathers," said U.S. Attorney Hochul. "Such cases are sensitive in nature but must be handled by the proper judicial authorities when, as in this case, circumstances warrant."
The sentencing is the culmination of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations under the direction of Special Agent in Charge James C. Spero.
Taylor County Man Charged with Defrauding Social Security of $110,148Read the Press Release
– Collected his deceased mother’s survivor benefits for ten years
BOWLING GREEN, Ky. – A federal grand jury meeting in Bowling Green, Kentucky this week charged a Taylor County, Kentucky resident with failure to report to Social Security Administration the death of his mother and fraudulently received her survivor benefits for ten years, announced David J. Hale, United States Attorney for the Western District of Kentucky.
George B. Roberts, age 69, was charged in a two count federal indictment, January 16, 2013, with theft of United States’ Funds and with Social Security Administration Payee Fraud. The indictment alleges that between June 2000 through August 2010, Roberts, willfully and knowingly converted to his use Social Security survivors insurance benefits, valued at approximately $110,148, belonging to the United States of America, which had been paid to his deceased mother’s checking account. The indictment further alleges that Roberts, concealed and failed to disclose to the Social Security Administration, that his mother, A.V.R., a beneficiary, was deceased, and he thereby intentionally and fraudulently continued to secure payment where no payment was authorized.
If convicted of count 1 of the indictment, Roberts shall forfeit to the United States any property derived directly or indirectly from gross proceeds traceable to the commission of the offense. Roberts faces, no more than 15 years in prison, a fine of up to $500,000 and a period of no more than three years of supervised release.
Roberts is scheduled for arraignment on the charges before U.S. Magistrate Judge Brent Brennenstuhl on January 30, 2013, in United States District Court located in Bowling Green, Kentucky.
This case is being prosecuted by Assistant United States Attorney James H. Barr and was investigated by the Social Security Administration’s Office of Inspector General.
State Inmate Pleads Guilty to Fraudulently Obtaining $29,000 in Social Security BenefitsRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 38-year-old woman pleaded guilty to fraudulently obtaining more than $29,000 in Social Security benefits. Dora White, who is incarcerated at the Shakopee Women’s Prison, pleaded guilty to one count of theft of government funds. White, who was charged on December 27, 2012, entered her plea before United States District Court Judge Richard H. Kyle.
In her plea agreement, White admitted that from May of 2007 to January of 2011 she received $29,755.30 in Social Security benefit payments on behalf of her daughter. In August of 2005, White became the representative payee for her daughter. White also admitted that between May of 2007 and January of 2011, she completed and signed accounting reports that falsely attested that her daughter resided with her and that the funds were going to be used for her daughter’s care. In fact, in April of 2007, the daughter was placed in foster care and was not in White’s custody.
For her crime, White faces a potential maximum penalty of ten years in federal prison. Judge Kyle will determine her sentence at a future hearing, not yet scheduled. This case is the result of an investigation by the Social Security Administration’s Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney David P. Steinkamp.St. Louis Man Sentenced to Prison for Counterfeiting, Resisting and ObstructionRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on January 18, 2013, Sancehez E. Smotherman, 36, of St. Louis, Missouri, was sentenced to 41 months in prison for Possession of Counterfeit Currency, Resisting or Impeding the U.S. Secret Service and Obstruction of Justice, as alleged in a three count indictment returned on July 18, 2012, by a Federal Grand Jury. Smotherman was also ordered to pay $600.00 in fines and special assessments and $2,904.01 in restitution to the City of Sauget, Illinois. The restitution was ordered to reimburse Sauget for medical expenses incurred when one of its officers was injured during Smotherman’s efforts to impede and obstruct the investigation.
At his plea on October 12, 2012, Smotherman admitted that on June 13, 2012, he had possessed and passed counterfeit United States currency at a business located in Sauget, Illinois. Smotherman also admitted that, after his arrest, he had tried to destroy evidence (directions on how to counterfeit money) by placing the evidence in his mouth in an attempt to swallow the item. Smotherman then resisted a Sauget, Illinois, police officer and an agent of the United States Secret Service in their attempts to prevent the destruction of the evidence. The Sauget police officer was injured while trying to prevent the destruction of the evidence.
The case was investigated by the United States Secret Service and the Sauget, Illinois, Police Department, and prosecuted by Assistant United States Attorney Ranley R. Killian.
Southeast Resident sentenced for illegally killing, selling and failing to tag marine mammalsRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Sherman Roger Alexander, 58, a resident of Ketchikan, Alaska, pled guilty and was sentenced to three violations of the Marine Mammal Protection Act for his role in the illegal taking of 87 sea otters, the failure to tag the hides as required, and for the illegal selling of marine mammal parts. Alexander was the fourth individual to be convicted and sentenced as a result of U.S. Fish and Wildlife undercover investigation into the illegal taking and selling of sea otters in Southeast Alaska.
As part of the proceedings in court, Alexander pled guilty to three charges involving the illegal take, sale and recording of unlawfully taken sea otters. Between April 23, 2008, and May 4, 2008, Alexander hunted sea otters with another person using that individual’s boat. The boat owner/driver herded sea otters to Alexander and, after the otters were killed assisted Alexander with their transport. Eighty-seven sea otters were killed during these hunts and Alexander unlawfully gave 14 sea otter skulls to the boat owner/driver after the hunts. Only Alaska Natives are allowed to take marine mammals and the charged hunting practice used by Alexander was illegal. As to the other violations, Alexander failed to record any of the 87 otters he killed, as required by the law. The approximate value of the illegally taken pelts is $30,000. As to the third count, Alexander admitted to selling a sea otter blanket from an illegally taken sea otter to an individual who was not an Alaska Native. The blanket also contained marine mammal parts that are illegal to sell to a non-Alaska native.
Alexander received a sentence of 6 months home confinement, and was ordered to pay a fine of $10,000, forfeit 144 sea otter hides and serve probation for a period of one year. During that one year period, Alexander is not allowed to hunt, nor partake in any business involving sea otters. The United States agreed with the court that Alexander could teach tanning and other skills to other members of the Haida/Tlingit community during his term of probation or home confinement.
Alexander was the fourth individual sentenced in the U.S. Fish and Wildlife Service’s undercover operation into the illegal take of sea otters. In 2009, Christopher R. Rowland, a non-Alaska Native and resident of Craig, Alaska, was sentenced to 37 months in prison, a fine of $5,000 and 3 years of supervised release as a result of his conviction in federal court on felony charges of violating the Lacey Act and the Marine Mammal Protection Act, among other crimes.
At the time of Rowland’s sentencing, the United States Attorney’s office advised the court that Rowland was extensively engaged in the illegal hunting, killing, and export of sea otters, sea lions and harbor seals and the illegal sale of their pelts. As explained to the court, the investigation started as a response to a concerned citizen’s tip that non-Alaska Natives were illegally killing sea otters for their pelts. IN following leads subsequent to this tip, the investigation developed into a two-year undercover operation into the illegal killing and commercialization, by non-Alaska Natives and Alaska Natives alike, of sea otters, seals, and sea lions, and all of which are protected by the Marine Mammal Protection Act. During the undercover investigation, agents documented the activities of Rowland, Alexander, Michael Smith and Douglas Smith in the illegal take of sea otters, the illegal sale of their pelts, and the failure to record and report harvest data as required by the Marine Mammal Protection Act as well as the sale of animal parts from animals protected by the Endangered Species Act.
The undercover operation revealed that Rowland conducted frequent and well-planned hunting trips to harvest sea otters and sell their pelts on a commercial scale and without regard to the consequences of his illegal activities. Rowland informed agents that he researched the regulations and laws governing sea otters by anonymously contacting various government agencies, including the U.S. Fish and Wildlife Service, for information on marine mammal rules and regulations. Thus armed with regulatory and legal information, Rowland gained a clear understanding on how best to conceal his crimes, and was able to put that understanding into practice. Rowland also took the additional steps to maximize his hunting time at sea by studying the work of biologists and other population distribution studies of sea otter populations in Southeast Alaska. From these habitat and population studies, Rowland learned of the best sea otter rafting and congregation areas where the mammals would present a larger concentration of targets.
In April, 2010, that Douglas Linn Smith, a resident of Craig, Alaska, was sentenced to one year in federal prison after pleading guilty to two felony charges of conspiracy to violate the Lacey Act and a single violation of the Lacey Act. In connection with his guilty plea and sentencing, Assistant U.S. Attorney Steve Skrocki advised the court that Smith, who is not an Alaska Native, was involved in a conspiracy to illegally take, transport, sell, and attempt to sell illegally killed sea otters on the open market via the internet. He also pled guilty to the sale of parts of a Steller’s Sea Lion, an marine mammal listed as threatened in Southeast Alaska by the Endangered Species Act.In July, 2011, Sitka resident, Michael E. Smith, 36, was sentenced by the Honorable Leslie Longenbaugh, United States Magistrate Judge for the District of Alaska, to six months imprisonment for illegally selling two tanned sea otter pelts to an undercover officer in violation of the Lacey Act.
Smith, an Alaska Native, illegally sold two whole sea otter pelts to a non-Alaska Native undercover agent for $800 in violation of the Marine Mammal Protection Act. The tanned pelts were then shipped outside of Alaska to the undercover agent in violation of the Lacey Act. As part of his sentence of six months imprisonment, Smith was placed on a one year term of supervised release and during that time cannot hunt, or in any way participate in the take, sale or manufacture of marine mammals or marine mammal products. Smith was also required to forfeit a firearm used in connection with the offense.
The United States Fish and Wildlife Service, Office of Law Enforcement (USFWS-OLE) led the investigation that led to the prosecution of these individuals and the investigation benefitted significantly from the support of Alaska Wildlife Troopers, NOAA Fisheries’ Office of Law Enforcement, U. S. Forest Service, Immigration and Customs Enforcement, U.S. Marshals Service, the State of Alaska Attorney General’s Office, the Alaska Bureau of Alcohol and Drug Enforcement, and the U. S. Attorney’s Office.South Roxana Man Sentenced for Tax Evasion and for Making Illegal Payments to A Government OfficialRead the Press Release
Stephen Keith Sweet, 53, of South Roxana, was sentenced in federal court on charges of tax evasion and making an illegal payment to a government official, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Sweet received a sentence of 18 months in prison followed by 3 years of supervised release. The court also ordered Sweet to pay a fine of $52,400, a restitution amount of $226,988 to the Internal Revenue Service, and a special assessment of $200.
“Tax evasion is reaching into the pocket of every law-abiding citizen in Southern Illinois and stealing from that person. I will not abide in such theft or in government officials who take bribes and thus violate the public trust.” noted United States Attorney Wigginton.
Sweet, who owns Lake Environmental, Inc. (LEI), Abatement Management, Inc. (AMI), and AMI O LLC, which are located in Madison County, Illinois, admitted in court that he willfully attempted to evade and defeat a large part of the income tax due and owing the United States of America by filing a false and fraudulent U.S. Individual Income Tax Return with the Internal Revenue Service. Sweet, who falsely reported his total income, had diverted business funds to his own personal use without declaring those amounts as income. As to the other charge, it was revealed that Sweet’s businesses provide asbestos abatement services. In February, 2009, Sweet made several payments on behalf of a United States Air Force contracting official in order to keep and obtain contracts for services on Scott Air Force Base. Sweet paid for the official’s car repairs of $2,495.01, and for his home heating and cooling repairs of $3,487.00.
The case was investigated by agents of the Internal Revenue Service - Criminal Investigation and U.S. Air Force Office of Special Investigations. The case is being prosecuted by Assistant U.S. Attorney Liam Coonan.
Six Veterans Convicted and Sentenced for Selling Drugs at VA Medical CenterFinal Defendant Sentenced TodayRead the Press Release
BOSTON – The final defendant, charged last year with five others, has been sentenced for his role in distributing controlled substances at the VA Medical Center in Bedford.
Steven Jakaitis, 50, of Lowell, was sentenced today by Judge Richard Stearns to 15 months in federal prison, followed by three years of supervised release. In July 2012, Jakaitis pleaded guilty to distribution of buprenorphine and conspiracy to distribute oxycodone.
In January 2012, Jakaitis was charged along with David DeJesus, 52, of Lowell; Scott Houtchens, 50, of Lowell; David Porterfield, 45, of Saugus; David Robson, 53, of Tewksbury; and Allen Nickerson, 52, of Dorchester, for distributing controlled substances on the VA Medical Center’s Bedford campus. The VA Medical Center in Bedford provides multiple services to veterans of the U.S. Armed Forces, including alcohol and drug abuse/addiction rehabilitation services. In some cases, the defendants were selling drugs that had been prescribed and provided to them by medical professionals at the VA Medical Center.
All of the defendants pleaded guilty to the charges. Jakaitis was the final defendant to be sentenced. DeJesus was sentenced to three years of probation for distributing heroin. Porterfield was sentenced to two years of probation for distributing clonazepam. Houtchens was sentenced to three years of probation and a fine of $250 for distributing buprenorphine. Nickerson was sentenced to two years of probation for distributing buprenorphine. Robson was sentenced by to five years of probation for distributing oxycodone and conspiracy to distribute oxycodone.“Any crime that takes advantage of the men and women who have served this nation is deplorable,” said United States Attorney Carmen M. Ortiz. “It is even more appalling when individuals prey on the weaknesses of recovering U.S. veterans. Drug trafficking remains a lucrative and dangerous trade and will continue to be the target of law enforcement. Today’s sentencing sends the message that when drug traffickers are caught, they will face serious consequences.”
“Mr. Jakaitis is the last of six individuals sentenced for selling controlled substances in and around the VA Medical Center in Bedford, Mass. This extensive seven month investigation and subsequent criminal prosecutions are the result of excellent cooperation with the DEA and VA Police. What is most distressing about this case is that drug dealing was occurring on the grounds of a VA hospital that hosts a drug rehabilitation program. Hopefully, this prosecution will deter others from dealing drugs to veterans who come to the VA for help with drug addiction and other ailments. Dealing drugs to veterans will not be tolerated and we will continue to actively pursue those that do. Veterans who have served our country deserve a safe place to heal and recover without being preyed upon by those who want to unlawfully profit from the sale of their own VA prescriptions,” said Special Agent in Charge Jeffrey G. Hughes of the Northeast Field Office for the Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division.“We will not allow our veterans who have served this great country to be targeted by criminal elements involved in drug distribution. DEA is committed to following all leads and developing investigations wherever they take us - in this case, to individuals who sold heroin and prescription drugs,” said Special Agent in Charge John J. Arvanitis, of DEA’s New England Field Division. “DEA is proud of and committed to our partnerships with the U.S. Department of Veterans Affairs, Office of Inspector General, the U.S. Department of Veterans Affairs Police Service and the United States Attorney’s Office for the District of Massachusetts.”
U.S. Attorney Ortiz, Special Agent in Charge Hughes, Special Agent in Charge Arvanitis and Chief Richard Meltz of the U.S. Department of Veterans Affairs Police Service, Bedford VA Medical Center, made the announcement. The cases were prosecuted by Assistant U.S. Attorney Amanda P.M. Strachan of Ortiz’s Health Care Fraud Unit.
Seven Arrested; Charged with Drug Conspiracy and Money LaunderingRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned an indictment charging Steven Bennett, 42, of Buffalo, N.Y.; Chandra Woods, 29, of Los Angeles, California; Jessica Lopez, 32, of Buffalo, N.Y.; Phillip Keomongkoun, 26, of Buffalo, N.Y.; Malcom Bull, 21, of Jamestown, N.Y.; Nikki Lillard, 49, of Buffalo, N.Y.; and Guy Burt with conspiracy to possess with intent to distribute, and to distribute, methamphetamine and cocaine, and money laundering conspiracy. The charges carry a mandatory minimum sentence of five years in prison, a maximum of 40 years, a $5,000,000 fine or both.
Assistant U.S. Attorney Joel L. Violanti, who is handling the case, stated that according to the indictment, between July 2012 and January 2013, Steven Bennett was a supplier of methamphetamine and cocaine. The defendant shipped the drugs from California to Buffalo for distribution by his co-defendants. Bennett made numerous trips to Buffalo to coordinate the shipments and further distribute the drugs.
"This investigation focused on a narcotic which is only beginning to be seen in our area and involved an organization that was seeking to create a market for this dangerous drug," said U.S. Attorney Hochul. "The fact that law enforcement was able to conclude this highly successful investigation in such a short period of time is to be commended."
DEA Special Agent in Charge Brian R. Crowell stated, “This organization was attempting to establish a customer base for Mexican methamphetamine and cocaine in the Western New York area – meth use destroys families, communities, and is extremely dangerous to our public. Any organization attempting to traffic meth is one of the top priorities for our task force. Our dedicated task force investigators identified the source of this extremely high purity methamphetamine being distributed throughout Buffalo’sneighborhoods, traced it back to Steven Bennet and his co-conspirators, and has them facing justice today. Like any illegal drug, methamphetamine has the potential to cause overdoses and death to many of its users, while also increasing violence, theft and crime associated with drug trafficking. I highly commend the men and women of our joint local, state and federal task force who worked with a sense of urgency to protect the citizens of Buffalo from this drug trafficking organization."
The indictment is the result of an investigation on the part of members of the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, the Erie County Sheriff's Department, under the direction of Sheriff Timothy Howard, the Cheektowaga Police Department, under the direction of Chief David Zack, and the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent in Charge Toni Weirauch.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent unless and until proven guilty.
Sentencings in Illegal Re-entry Cases Involving Those with Prior Criminal RecordsRead the Press Release
MINNEAPOLIS -- In the District of Minnesota, court action continued this week in two separate cases involving foreign nationals who entered the United States illegally after being deported as criminals. Yesterday, one of those men was sentenced on one count of illegal entry after removal, while earlier in the week a second man was sentenced for the same crime.
In the first case, U.S. District Court Judge David S. Doty sentenced Miguel Angel Renteria-Garcia, age 40, to 41 months in federal prison. Renteria-Garcia was indicted on July 23, 2012, and pleaded guilty on September 21, 2012. In his plea agreement, Renteria-Garcia admitted that on July 5, 2012, he was found in the U.S. after having been previously deported in 1996, following California convictions for possession of a controlled substance while armed and possession with intent to sell a controlled substance. On July 5, 2012, Renteria-Garcia, also known as Rodolfo Amescua-Flores, was stopped by the Minnesota State Patrol near Owatonna in connection to the seizure of approximately 235 pounds of marijuana.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Minnesota State Patrol. It was prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.In the second case, Daniel Gonzalez-Deleone, age 35, was sentenced to 24 months in federal prison by U.S. District Court Judge Richard H. Kyle. Gonzalez-Deleone was indicted on June 18, 2012, and pleaded guilty on August 10, 2012. In his plea agreement, Gonzalez-Deleone admitted that on May 15, 2012, he was found in the U.S. illegally after having been previously deported. His deportation followed a 2005 California conviction for sale or transportation of marijuana. On May 15, 2012, he was arrested for loitering and for public consumption and was held in the Hennepin County jail, where he was identified as an illegal alien with a criminal record.
That identification was made though the U.S. Immigration and Customs Enforcement’s (“ICE”) Criminal Alien Program (“CAP”). The goal of that program is to locate criminal aliens incarcerated in federal and state prisons as well as in local jails and prevent them from being released into society by having them federally prosecuted for illegally re-entering the U.S. In some instances, federal prosecution will occur only after the individual is prosecuted for the recent underlying offense.
This case was the result of an investigation by ICE’s Enforcement and Removal Operations (“ICE ERO”). It was prosecuted by Assistant U.S. Attorneys Kevin S. Ueland and Lola Velazquez-Aguilu.
Both men will be deported after serving their federal sentences. To learn more about the CAP, visit www.ice.gov/criminal-alien-program/Robert John and Rachael Marie Hanlon Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on January 17, 2013, before Chief U.S. District Judge Richard F. Cebull, ROBERT JOHN HANLON, age 40, and RACHAEL MARIE HANLON, age 24, residents of Roundup, appeared for sentencing.
ROBERT HANLON was sentenced to a term of:
Prison: 37 months
Special Assessment: $100
Supervised Release: 3 years
RACHEL HANLON was sentenced to a term of:
Probation: 5 years
Special Assessment: $100
They were sentenced in connection with their guilty pleas to conspiracy to maintain drug-involved premises.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
On September 2, 2011, the HANLONS operated a marijuana grow with 262 plants on their property in Musselshell County - some of the plants were inside the house, most of the plants were outside in various locations hidden in wooded areas. The HANLONS called law enforcement to their property claiming that they had shot an intruder who was bleeding on their bed inside the house. Both HANLONS admitted to possessing firearms recovered by law enforcement. They stated that RACHAEL did the shooting and ROBERT, a convicted felon, fixed the guns when they jammed and reloaded them for RACHAEL.
A Musselshell County Sheriff's deputy was first on the scene. He responded to a shooting call at the HANLON residence - initial call was 3 people in the house with guns. A second call was there was shooting at the residence and a subject was shot, lying in the bed bleeding. The deputy noted that both HANLONS appeared to be under the influence of some sort of narcotic due to their actions. No shooting victim was located. All shots fired appeared to come from inside the residence. The spent rounds were discharged through a window and outside the residence. The deputy observed several marijuana plants in the basement while clearing/checking the house while checking the immediate area surrounding the house. Other deputies located multiple marijuana grows in the wooded area around the residence. The HANLONS turned over 4 firearms to the deputies.
ROBERT advised the deputy that RACHAEL did all of the shooting and had difficulty with the firearms. When one would jam, ROBERT would take the firearm, clear it, load or reload the firearm, and give it back to RACHAEL.
RACHAEL told the deputy that once the subject was inside their bedroom room, RACHAEL fired one round from the 20 gauge shotgun and threw it down. RACHAEL and ROBERT then retreated into the master bathroom attached to the master bedroom. While in the bathroom, she continued to shoot at the subject on the bed. She used two different handguns shooting at the bed and out the window.
Law enforcement found the 262 marijuana plants in the house as well as in the wooded areas around the house. Dried marijuana was also found in the house and wooded areas.
During an interview with the law enforcement, ROBERT HANLON stated that the people were trying to break into their house, kill them, and take their (marijuana) grow.
The window and screen were still intact on the window that the HANLONS claimed someone came inside through. He noted that the window was approximately 8 feet from the ground on the main level of the house.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that they will likely serve all of the time imposed by the court. In the federal system, they do have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Musselshell County Sheriff's Office, the Valley County Sheriff's Office, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Criminal Investigation Division of the Internal Revenue Service.
Police Officer Charged with His Brother in Alleged Tax FraudRead the Press Release
PHILADELPHIA - Brothers Jose Tirado, 38, and Victor Tirado, 36, both of Philadelphia, were charged by indictment, unsealed today, in a tax fraud conspiracy, announced United States Attorney Zane David Memeger and IRS Special Agent-in-Charge Akeia Conner. Jose Tirado, an officer in the 25th District of the Philadelphia Police Department, was arrested this morning.
According to the indictment, between January 2008 and March 2010, the two men obtained names, dates of birth, and Social Security Numbers, of individuals, including children. In some cases, the brothers allegedly recruited the individuals to provide the identifying information. With that information, Jose Tirado allegedly prepared federal individual income tax returns that falsely and fraudulently inflated earned income amounts in order to obtain tax refunds that included Earned Income Tax Credits. In some cases, he listed false dependents on the tax returns. He then allegedly filed the false income tax returns with the IRS in electronic form using the TurboTax® computer software program and directed the IRS to deposit refunds generated from the false income tax returns to one of two Bank of America Bank Accounts. Jose Tirado and other individuals, known and unknown to the grand jury, received tax refunds issued by the IRS that were generated because of the allegedly false tax returns that were submitted. In total, $507,974 in false claims were submitted.
Each of the brothers is charged with conspiracy to defraud the government with respect to claims; Jose Tirado is additionally charged with 14 counts of false claims; Victor Tirado is charged with three counts of false claims.If convicted of all counts, Jose Tirado faces a maximum statutory sentence of 80 years in prison, mandatory restitution of $407,787.94, up to five years of supervised release, a fine of up to $3.75 million, and a $1,500 special assessment; Victor Tirado faces a maximum statutory sentence of 25 years in prison, mandatory restitution of $407,787.94, up to five years of supervised release, a fine of up to $1,000 fine, and a $400 special assessment.
The case was investigated by the Internal Revenue Service Criminal Investigations, the Federal Bureau of Investigation, and the Philadelphia Police Department of Internal Affairs. It is being prosecuted by Ashley Lunkenheimer.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Plainville Man Who Received and Distributed Child Pornography Sentenced to Two Years in PrisonRead the Press Release
January 18, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that STEVEN DONALD LEWIS, 23, of Plainville, was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to 24 months of imprisonment, followed by 10 years of supervised release, for receiving and distributing child pornography.
According to court documents and statements made in court, on November 9, 2010, a Bristol Police Department detective assigned to the Connecticut Computer Crimes Task Force in New Haven logged into a publicly available Internet file sharing program and downloaded 34 images of child pornography from a shared directory maintained by LEWIS. On December 8, 2010, LEWIS was arrested at his dormitory residence at the University of Connecticut. On that date, law enforcement agents also seized LEWIS’s laptop computer.
Analysis of the seized computer revealed thousands of images and videos of child pornography. Included in his collection of child pornography were images of children under the age of 12 engaged in sexually explicit conduct. Forensic review also revealed that LEWIS distributed child pornography images and videos through the file sharing program located on his computer.
On August 13, 2012, LEWIS waived his right to indictment and pleaded guilty to one count of receiving child pornography.
LEWIS has been released on bond under supervision of the United States Probation Office since shortly after his arrest. He has been ordered to report to prison on March 1, 2013.
This case was investigated by the Federal Bureau of Investigation, the United States Secret Service and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The case was prosecuted by Assistant United States Attorney Sarala V. Nagala.
The Connecticut Child Exploitation Task Force, which is housed at the main FBI office in New Haven, investigates crimes against children occurring over the Internet, and provides computer forensic review services for participating agencies. For more information about the Task Force, or to report child exploitation crimes, please contact the FBI at 203-777-6311.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Plain Dealing Man Pleads Guilty to Failure to Register as a Sex OffenderRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that Nobryan McGee, 24, of Plain Dealing, La., pled guilty on Wednesday to traveling across state lines and failing to register as a convicted sex offender. In March 2006, McGee was convicted in Benton, La. of simple rape, and in May of 2012, McGee relocated from Caddo Parish to Hot Springs, Ark., without properly registering as a sex offender in Louisiana and Arkansas.
Failure to Register as a Sex Offender and Traveling Across State Lines carries a maximum term of 10 years in prison, a $250,000 fine, or both. McGee will be sentenced by U.S. District Judge S. Maurice Hicks on May 15, 2013 at 1:30 p.m.
The case was investigated by Deputy United States Marshall T.C. Bloxom and is being prosecuted by Assistant United States Attorney Earl M. Campbell.
Parking Lot Attendant Sentenced to 20 Months for Stealing $487,000 in Parking Fees from Smithsonian MuseumRead the Press Release
ALEXANDRIA, Va. – Meseret Terefe, 37, of Silver Spring, Md., was sentenced today to 20months in prison, followed by three years of supervised release, for stealing approximately $487,000 of visitor parking fees belonging to the Smithsonian Institution’s Steven F. Udvar-Hazy Center in Chantilly, Va.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Scott S. Dahl, Inspector General for the Smithsonian Institution; and Debra Evans Smith, Acting Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by United States District Judge T. S. Ellis III.
Terefe was also ordered to pay $487,515 in restitution and forfeit the same amount, including $218,000 in cash recovered following his arrest.
Terefe pleaded guilty on Sept. 28, 2012. According to court documents, Terefe admitted that from March 2009 and continuing through July 2012, he was an employee of Parking Management, Inc. (PMI) and worked as a booth attendant at the National Air and Space Museum’s Steven F. Udvar-Hazy Center parking lot. The Udvar-Hazy Center is the annex location of the Air & Space Museum and is home to the Space Shuttle Discovery and other historic aircraft. These two Smithsonian sites display the largest collection of aircraft and spacecraft in the world. PMI began managing the Center’s parking lot, which holds approximately 2,000 vehicles, in March 2009.
Terefe admitted that he began stealing parking fees in late 2009 by either repeatedly unplugging the electronic vehicle counters installed in the parking booths or by not handing customers a serialized parking ticket to display in the car windshield after they paid their entrance fee. These tactics allowed Terefe to underreport the true number of vehicles entering the facility. He and other booth attendants discussed tactics for stealing parking revenues, and Terefe stated that one of his managers approached him and demanded that Terefe pay him half of the stolen proceeds in order to continue his criminal activity.
Terefe stole between $1,800 and nearly $4,500 during a daily shift working at the Smithsonian, and the three-year loss to the Smithsonian attributable to Terefe is approximately $487,000. Terefe stored a portion of the cash proceeds at his residence in Silver Spring and used some of the proceeds to purchase an interest in commercial property in Ethiopia.
The investigation was initiated by the Smithsonian Office of the Inspector General and jointly investigated by the FBI’s Washington Field Office. Assistant United States Attorney Jasmine Yoon from the U.S. Attorney’s Office for the Eastern District of Virginia’s Financial Crimes and Public Corruption Unit and Special Assistant United States Attorney James McDonald 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.Pain Clinic Owner and Two Physicians Sentenced for Prescription Drug Conspiracy and Money Laundering ConspiracyRead the Press Release
PENSACOLA, FLORIDA – Dennis M. Caroni, age 38 of Los Angeles, CA, Dr. Gerard M. DiLeo, age 61 of Bradenton, FL, and Dr. Joseph G. Pastorek, II, age 62 of Slidell, LA, were sentenced today by Chief U.S. District Judge Casey Rodgers for their roles in running illegal pill mill pain clinics in Pensacola and New Orleans. Following a six-week trial in United States District Court in Pensacola in October and November 2011, all three defendants were charged and found guilty of conspiring to unlawfully distribute prescription pain killers. Caroni and DiLeo were also convicted of conspiring to unlawfully launder the proceeds of their prescription drug distribution violations.
As the owner and operator of Global pain management clinics in Pensacola and the New Orleans area between 2004 and 2008, Caroni was sentenced by Chief Judge Rodgers to 20 years in prison. DiLeo was sentenced to two years’ imprisonment plus one additional year home confinement for his role as part-owner of one of the clinics and full-time prescribing physician. The other prescribing physician charged, Pastorek, was sentenced to one year’s imprisonment plus one additional year home confinement.
The sentencing hearing for all three defendants had originally commenced July 25, 2012. The proceeding was adjourned after two days to give Chief Judge Rodgers additional time to consider the evidence before making a ruling. The hearing resumed on January 17, 2013, to present additional evidence for the judge’s consideration. Following final arguments by the attorneys this morning, Chief Judge Rodgers pronounced the sentence for each defendant.
“The protection of citizens from unscrupulous individuals who operate pill mills, dispensing highly addictive controlled substances, is a primary concern of healthcare fraud investigations,” said U.S. Attorney Marsh. “Operators of such clinics and the doctors they hire to peddle dangerous narcotics will be vigorously prosecuted by this office. These defendants irresponsibly distributed oxycodone, methadone, and hydrocodone, and they operated outside the usual course of professional medical practice – in short, they were drug dealers. The indiscriminate over-prescribing of narcotic drugs wreaks havoc on society by causing addiction and potential overdose deaths. The combination of illegal drug distribution and the theft of public funds and fraud committed against the taxpayers and health care benefit programs remains a high priority of the Department of Justice.”
This case was the result of a multi-year Organized Crime Drug Enforcement Task Force operation named “Doc-in-a-Box” and the cooperative efforts of the Drug Enforcement Administration, Internal Revenue Service—Criminal Investigation, Florida Department of Law Enforcement, Santa Rosa County Sheriff’s Office, and U.S. Attorney’s Office Northern District of Florida. The defendants were prosecuted by Assistant U.S. Attorneys Randy Hensel and Alicia Kim.
Owner of Texas Durable Medical Equipment Companies Convicted in Fraud SchemeRead the Press Release
A Texas federal judge convicted the owner of two Texas-based durable medical equipment companies today on multiple health care fraud charges following a five-day bench trial, announced Assistant Attorney General Lanny A. Breuer of the Justice Department?s Criminal Division.
Hugh Marion Willet, 69, of Fort Worth, Texas, was found guilty by U.S. District Judge Jane J. Boyle in the Northern District of Texas on all seven counts of the June 2012 second superseding indictment: one count of conspiracy to commit health care fraud and six counts of health care fraud stemming from a durable medical equipment (DME) fraud scheme. Willett?s wife, Jean Willett, previously pleaded guilty to the same charges and was sentenced in September 2012 to serve 50 months in prison.
The evidence at trial showed that between 2006 and 2010, the Willets co-owned and operated JS&H Orthopedic Supply LLC and Texas Orthotic and Prosthetic Systems Inc., which claimed to provide orthotics and other DME to beneficiaries of Medicare and private insurance benefit programs including Aetna, Blue Cross Blue Shield and CIGNA.
Evidence presented in court proved that both of these companies intentionally submitted claims to Medicare and other insurers for products that were materially different from and more expensive than what was actually provided, and that Hugh Marion Willett was a knowing and willing participant in the fraud.
At sentencing, currently scheduled for April 18, 2013, Hugh Marion Willett faces a maximum potential penalty of 10 years in prison and a $250,000 fine on each count.
The case is being prosecuted by Fraud Section Trial Attorney Ben O?Neil and Deputy Chief Sam Sheldon of the Justice Department?s Criminal Division. The case was investigated by the FBI and the Department of Health and Human Services Office of Inspector General (HHS-OIG) and brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division?s Fraud Section.
Since their inception in March 2007, strike force operations in nine locations have charged more than 1,480 defendants who collectively have falsely billed the Medicare program for more than $4.8 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.Owner of Miami-Dade Wholesale Distributing Company Pleads Guilty to Tax Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), announced that defendant David Bradman, 54, of Miami, pled guilty today to one count of making a false U.S. Income Tax Returns for an S Corporation, Forms 1120S, in violation of Title 26 U.S.C § 7206(1) for the tax year 2005. Sentencing has been scheduled for April 1, 2013, at 3:30 p.m. before U.S. District Judge Joan Lenard.
According to statements made in court and documents filed in the case, Bradman was the sole owner and operator of Diplomat Trading, Inc., in Miami, Florida. The company was a wholesale distributor of consumer electronics that exported merchandise to Latin America. In 2000, a scheme was devised where defendant along with others set up a Panamanian corporation, CHF Electronics (CHF) and opened a bank account in the company’s name in Panama. Thereafter on October 20, 2002, a false note was created to make it appear as though Diplomat Trading had borrowed $6,301,008.16 from CHF Electronics. The note was signed by Bradman. Checks representing purported payments on this note were sent from Diplomat Trading to CHF Electronics. Bradman falsely and knowingly inflated the amounts listed as mortgages, notes and bonds payable, and the corresponding interest deductions, in his U.S. Income Tax Returns for his S Corporation, Forms 1120S, in the name of Diplomat Trading, Inc. Bradman created the illusion of a bona fide commercial business relationship between Diplomat Trading and CHF Electronics. In fact, however, Bradman controlled both Diplomat Trading and CHF Electronics, and knew that these two companies did not have a genuine commercial business relationship.
The indictment further alleges that Bradman used CHF Electronics to cycle money for his personal use. In 2005, Bradman had a second company, MDA Inversiones incorporated in Panama. Approximately $700,000 was moved from CHF’s bank account in Panama to a Panamanian bank account for MDA Inversiones. A majority of those funds were then wired to the United States so that Bradman could purchase 2 properties in Miami, Florida.
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.
Over $300,000 from Sale of Drug Dealer’s Home Forfeited to the United StatesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today the forfeiture of more than $300,000 from the sale of a drug trafficker’s home. According to United States Attorney Peter J. Smith, United States District Judge John E. Jones, III, entered a Final Order of Forfeiture on January 14, 2013 in connection with a criminal case pending against Robert Taylor. The court’s order forfeited $341,898.35 to the United States. That sum was the proceeds of the sale of Taylor’s home located at 4216 Herrera Court, Randallstown, Maryland. Those proceeds were held by the United States Marshals Service since the closing on the sale pending the court’s forfeiture order.
Taylor, 37, of Aberdeen, MD and co-defendant, Shawn Duncan, 41, of Harrisburg, came to the attention of authorities following an investigation into drug activity in Harrisburg. Taylor was identified as a source of supply for Duncan. In February of 2012, federal agents made multiple purchases of crack cocaine from co-defendant Duncan. Both Duncan and Taylor were arrested on February 9, 2012 and approximately 9 ounces of crack cocaine was seized.
Taylor and Duncan were indicted by a federal grand jury in Harrisburg in February 2012 with unlawfully distributing both cocaine HCL and crack cocaine as well as criminal conspiracy to do the same. A superseding indictment was returned by a federal grand jury in Harrisburg in March 2012 providing notice of the Government’s intention to forfeit any property that drug proceeds were used to purchase and any property used to commit the offenses. The federal investigation revealed that the proceeds of drug trafficking were used to purchase the Randallstown home.
On October 1, 2012 both Taylor and Duncan pleaded guilty to unlawfully distributing cocaine HCL and crack cocaine. Taylor agreed to the forfeiture of the proceeds of the sale of the Randallstown home. Both defendants await sentencing. Taylor faces a mandatory minimum term of imprisonment of 10 years up to life imprisonment. Duncan faces a maximum sentence of 20 years imprisonment. Sentencing dates have not yet been scheduled for either defendant.
The case was investigated by the U.S. Drug Enforcement Administration’s Harrisburg Resident Office, the Pennsylvania State Police, the Dauphin County Drug Task Force and the East Lampeter Township Police Department. The case is being prosecuted by Assistant U.S. Attorney William A. Behe.
Nine Charlotte Men Have Been Arrested and Charged with Drug ConspiracyRead the Press Release
A Charlotte Woman Was Charged With Maintaining Drug-Involved Premises
CHARLOTTE, N.C. – Nine Charlotte men were arrested today on federal drug charges during an early morning roundup conducted by the Drug Enforcement Administration and the Charlotte Mecklenburg Police Department, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Tompkins is joined in making today’s announcement by Harry S. Sommers, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office and Chief Rodney D. Monroe, of the Charlotte-Mecklenburg Police Department (CMPD).
Today’s arrests and indictment are the result of “Operation Enderly Park,” a six-month investigation conducted jointly by the DEA and CMPD to target and reduce violent crime in Mecklenburg County, with special emphasis placed on Enderly Park neighborhood in northwest Charlotte.
The defendants were apprehended early morning on Friday and were charged with multiple counts of conspiracy to possess with intent to distribute crack cocaine, marijuana and cocaine. The federal indictment was filed on Wednesday, January 16, 2013, and was unsealed today in U.S. District Court in Charlotte following the arrests.
Those arrested and charged today are Theodore Falls, 38, Maurice Crawford, 32, Derrick Lowery, 31, Derrick Owens, 35, Aaron Ligon, 48, Mario Wilson, 23, Cadaryl Drayton, 25, Curtis Smith, 36, and Lavar Rodgers, 31, all of Charlotte. Mary Falls, 70, also of Charlotte, was arrested and charged today with one count of maintaining drug-involved premises. Another defendant named in the indictment, Nathaniel Washington, 30, of Charlotte, has not been arrested yet.
In making today’s announcement U.S. Attorney Tompkins thanked the DEA and CMPD for today’s successful operation. U.S. Attorney Tompkins noted, “Today’s arrests are the result of a coordinated effort of law enforcement partners to focus our resources on a hot spot for drug trafficking. I want to assure the public that we remain steadfast in our commitment to making our streets safer and to prosecuting those who spread drugs in our communities.”
“Those involved in drug trafficking are simply delivering deadly doses of poison to the community. The perpetrators who distribute these dangerous and deadly chemicals deserve to be prosecuted to the fullest extent of the law and that is what happened with this case today. I would like to thank our law enforcement partners who helped make this investigation a success,” said Special Agent in Charge Sommers, of DEA’s Atlanta Field Division.
“The Charlotte-Mecklenburg Police Department and our partner agencies will continue to be diligent in letting criminals know that these neighborhoods are not a safe haven for their illegal activities,” said Chief Rodney Monroe, Charlotte-Mecklenburg Police Department. “We are committed to utilizing all our resources to impact crime in the community.”
All defendants, except Ligon and Smith, had their initial appearances today in U.S. District Court before U.S. Magistrate Judge David S. Cayer and were detained pending their detention hearings. The defendants charged with drug conspiracy face a statutory minimum prison term of five years and a maximum of 40 years, and a $5 million fine. Mary Falls faces a maximum prison term of 20 years and a $500,000.
The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The investigation is being handled by the DEA and CMPD. The prosecution for the government is being handled by Assistant U.S. Attorney Dana Washington of the U.S. Attorney’s Office in Charlotte.
Nigerian National Pleads Guilty to Involvement in Multi-Million Dollar Attorney Collection ScamRead the Press Release
The United States Attorney’s office for the Middle District of Pennsylvania announced that a Nigerian national charged in connection with a multi-national scheme that bilked more than $70 million from U.S. and Canadian lawyers pleaded guilty in federal court today in Harrisburg.
According to United States Attorney Peter J. Smith, Emmanuel Ekhator, 42, of Mississauga, Canada, and Benin City, Nigeria, pleaded guilty to criminal conspiracy to commit mail fraud and wire fraud before United States Magistrate Judge Martin C. Carlson. Pursuant to a plea agreement with the government, Ekhator also acknowledged the government’s right to forfeit property in Canada and the contents of several bank accounts in Nigeria.
According to the information provided to the court by Assistant U.S. Attorney Christy Fawcett during the guilty plea proceeding, Ekhator was part of a scam that targeted lawyers. Conspirators contacted U.S. and Canadian law firms by e-mail claiming to be individuals or businesses outside North America who were owed money by entities in the U.S. and asking for legal representation to collect the money. Often, the prospective “clients” said the monies owed came from a real estate transaction, tort claim, or divorce settlement.
Once the law firm agreed to represent the out-of-country “client”, the law firm would be contacted by the U.S. entity purportedly owing money with an offer to pay the “client” by check. The “client” would instruct the law firm to deposit the check in the law firm’s trust account, retain the law firm’s fee, and wire the remaining funds to accounts in Asia. The check that was then mailed to the law firm would be a counterfeit check, a fact that would be discovered only after funds from the law firm’s trust account had been wired to the Asian bank.
The counterfeit checks, which appeared to be drawn on legitimate accounts from well-established financial institutions, often included a telephone number for the financial institution. Lawyers attempting to determine the validity of the check would call the number only to reach another conspirator who would falsely verify the check. Ekhator’s co-defendant, Yvette Mathurin, has been charged with alleged involvement with this aspect of the conspiracy and is awaiting extradition from Canada.
As part of the plea agreement lawyers for Ekhator told the court that Ekhator’s involvement in the scheme makes him responsible for losses of more than $7 million and up to $20,000,000. Ekhator also admitted to being a leader in the sophisticated criminal enterprise.
Ekhator was arrested in Nigeria in August 2010, and extradited to the United States in August 2011.
In this particular case, the maximum penalty under the federal statute is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Sentencing is expected to occur in the spring.
This case is part of an on-going investigation of advance fee collection fraud schemes by a task force including the United States Postal Inspection Service, the Federal Bureau of Investigation, the United States Secret Service, the Toronto Police Services, the Royal Canadian Mounted Police, the Nigerian Economic and Financial Crimes Commission and the U.S. Attorney’s Office for the Middle District of Pennsylvania.
New Iberia Man Sentenced to 235 Months in Prison for Receiving Child PornographyRead the Press Release
LAFAYETTE, La.: United States Attorney Stephanie A. Finley announced today that Jason Daniel Scott, 30, of New Iberia, La., was sentenced to serve 235 months in federal prison for possession of child pornography. The sentence was handed down this week by U.S. District Judge Richard T. Haik in federal court in Lafayette, La. In addition to the prison term, the judge also sentenced Scott to 10 years of supervised release, following confinement.
Scott pleaded guilty in July of 2012, to receiving child pornography. According to court documents previously filed with the court, an undercover investigation revealed that the defendant was using Limewire to receive child pornography. Limewire is an internet peer to peer site used to trade files among members and is regularly used to distribute child pornography. Pursuant to a search warrant executed at Scott’s residence, a forensic examination of his computer revealed that Scott received a video via the internet on July 14, 2010, which contained a prepubescent child engaging in sex with an adult. There were
11 videos found on Scott’s computer, all including prepubescent children engaging in sexual activities with adult men.U.S. Attorney Finley stated, “Child pornography is one of the most disturbing crimes in this country. The children in these videos are victimized by being sexually exploited, and they are re-victimized as the images are distributed over and over again. The U.S. Attorney's Office, along with our federal state and local law enforcement partners, have made these prosecutions a priority and will continue our efforts to protect children.”
The case was investigated by Homeland Security Investigations (HSI). The case was prosecuted by Assistant United States Attorney John Luke Walker.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE. This hotline is staffed around the clock by investigators.
More Than 11 Pounds of Methamphetamine Seized at San Francisco International AirportRead the Press Release
SAN FRANCISCO – A federal grand jury in the Northern District of California indicted 21 year-old Naomi Antunez yesterday for possessing with the intent to distribute 500 grams or more of methamphetamine, United States Attorney Melinda Haag announced.
According to a criminal complaint filed in the case, Antunez, a resident of Winston-Salem, N.C., is alleged to have brought almost 11 pounds of methamphetamine into the United States from Mexico on a commercial flight. The complaint alleges that the drugs were concealed inside a piece of wood furniture in Antunez’s luggage. Alert officers of the U.S. Customs and Border Patrol discovered the drugs during Antunez’s entry into the United States at San Francisco International airport on Dec. 13, 2012.
Antunez was charged by complaint on Dec. 13, 2012. A federal grand jury returned a one-count indictment on Jan. 17, 2013. Antunez appeared in federal court this morning before U.S. Magistrate Judge Laurel Beeler and pleaded not guilty to the felony drug trafficking charge. She is next scheduled to appear in federal court on March 6, 2013, before U.S. District Judge Edward M. Chen.
Antunez faces 10 years to life in prison and a $10 million fine for violating Title 21 of the United Sates Code, sections 841(a)(1) and (b)(1)(A)(viii). However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The prosecution is the result of an investigation by the U.S. Customs and Border Patrol and the Department of Homeland Security’s Investigations division.
Please note: an indictment contains only allegations against an individual, and as with all defendants, Antunez must be presumed innocent unless and until proven guilty.
(Naomi Antunez Indictment )
Miami Police Sergeant Convicted of Civil Rights Violations, Narcotics Distribution Conspiracy and Obstruction of JusticeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Manuel Orosa, Chief, City of Miami Police Department (MPD), announced the conviction of Raul Iglesias, 40, of Miami, Florida, a City of Miami Police sergeant, on eight counts, including two civil rights violations, conspiracy to possess and possession with the intent to distribute cocaine and crack cocaine, obstruction of justice and making false official statements.
The defendant was found guilty by a jury after a two-week trial before United States District Judge Cecilia Altonaga. Sentencing has been scheduled for March 28, 2013. At sentencing, the defendant faces a maximum statutory sentence of up to 20 years in prison.
U.S. Attorney Wifredo Ferrer stated, “A law enforcement badge brings with it privileges and responsibilities. Although it bestows on the bearer the trust and respect of the community, the bearer is expected to preserve that trust through his actions: by following the law, doing what is right, and seeking to do justice. Sergeant Iglesias, unfortunately, did just the opposite: he broke the law by planting drugs on a private citizen, distributing drugs, obstructing justice, and making false statements. My office, and the honest and dedicated men and women in law enforcement, have zero tolerance for such corruption.”
“We are pleased with the conviction of Raul Iglesias because his actions not only violated the law, they also undermined the public’s trust in law enforcement,” said acting Special Agent in Charge Michael B. Steinbach of the Miami Division. "Iglesias was brought to justice in large part due to the dedication and commitment of the members of the Miami Area Corruption Task Force.”
According to the evidence presented at trial, Iglesias, in his capacity as a supervisor of an anti-narcotics unit in the City of Miami Police Department, planted cocaine on a subject, stole drugs and money from other subjects, obstructed justice and made false statements to federal investigators.
The prosecution was the result of a joint investigation by the City of Miami Police Department’s Internal Affairs Unit and the FBI’s Public Corruption Squad. Mr. Ferrer commended the investigative efforts of the FBI and the City of Miami Police Department. The case was prosecuted by Assistant U.S. Attorneys Ricardo Del Toro and Michael Berger.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Member of Vermilion Parish Drug Trafficking Organization Sentenced to 20 Years in Federal PrisonRead the Press Release
LAFAYETTE, La.: United States Attorney Stephanie A. Finley announced today that Jose Luis Regalado, aka “Tito,” 34, a member of a drug trafficking organization based out of Vermilion Parish, was sentenced yesterday by U.S. District Judge Elizabeth E. Foote, to serve 20 years in federal prison, followed by five years of supervised release. The sentence was the result of Regalado pleading guilty on September 11, 2012, to Conspiracy to Possess with Intent to Distribute Methamphetamine and Cocaine.
Regalado and 11 co-defendants were indicted in June of 2009 on a variety of drug trafficking and firearms charges, along with unlawful use of communication facilities. Evidence revealed that this drug trafficking organization was responsible for the movement and sale of methamphetamine and cocaine from Mexico into the United States, and distribution throughout the Acadiana area. Regalado and his co-conspirators possessed and distributed kilos of methamphetamine and cocaine. The defendant admitted that he formed this drug organization, along with another co-conspirator, and was a decision maker in the organization, but could not speak English, so his brother began dealing with the Americans. Regalado had a source of supply in Arizona and developed a secondary source of supply for the conspiracy in Houston. The defendant's couriers were often armed with weapons while transporting the illegal substances. Regalado acknowledged that he was specifically responsible for the distribution of approximately 10 kilograms of methamphetamine and approximately 5 kilograms of cocaine.
United States Attorney Stephanie A. Finley stated, “Drug trafficking of any kind is a threat to our communities. This defendant was a part of a dangerous organization dealing in illegal narcotics in the Acadian area. The U. S. Attorney’s Office, along with the Drug Enforcement Administration and local and state law enforcement agencies, will continue to work in partnership to stem the flow of drugs into our neighborhoods. We are committed to holding drug dealers, from the couriers to the leaders, accountable to keep our communities safe.”
This case was investigated by the Drug Enforcement Administration (DEA), Lafayette, La. Post of Duty, the Vermilion Parish Sheriff’s Office and the Lafayette Metro Narcotics Task Force and was prosecuted by United States Attorney Stephanie A. Finley.
Letter to the Editor on Gun ControlRead the Press Release
TUCSON, Ariz. - In the wake of the January 8, 2011 shooting here in Tucson, and other mass shooting incidents in this country since then, culminating with the school shooting in Connecticut last month, the political climate for a constructive discussion about gun control appears to be more favorable now than ever before. If not now, when? In recognition of this, the President and Vice President are leading an effort to identify concrete steps that can be taken to help prevent mass shootings and reduce gun violence in this country. As the President said, “While there is no law or set of laws that can prevent every senseless act of violence completely, if there is even one thing we can do to reduce this violence – if even one life can be saved – we have an obligation to try.” Gabby Giffords and Mark Kelly have also responded to this issue by founding Americans for Responsible Solutions to help foster this discussion and move it forward.
What are the most reasonable, widely accepted, steps that can be taken? The President outlined four areas:
- Close background check loopholes to keep guns out of the hands of criminals;
- Ban military-style assault weapons, high capacity magazines, and armor piercing bullets;
- Make schools safer; and
- Increase access to mental health services.
The primary action is closing the background check loopholes that now allow a person legally prohibited from possessing guns to obtain them, without a background check, simply by buying them at a gun show. This is an obvious step that has little opposition. The only issue is a practical one: how to provide background checks in a private gun sale? A common sense, not overly burdensome, solution would be to require all gun sales and exchanges to go through a licensed firearms dealer that has the ability to run a background check. Dealers would be entitled to collect a modest fee for their trouble and every firearms exchange would then be subject to the same screening process to keep guns out of the hands of criminals. This system would also maintain up to date and accurate gun ownership information that would assist law enforcement in tracing guns involved in crimes.
The second essential part of any effort to keep guns out of the hands of criminals must be to get tougher on those who buy guns with the express purpose of selling them to criminals and punishing anyone who helps such “straw purchasers.” The Bureau of Alcohol, Tobacco and Firearms has the primary responsibility of enforcing our gun laws, but it has been hampered in its mission by both a lack of effective law and resources, and the fact that Congress has not confirmed a director of this agency in six years.
Congress should restore a ban on military-style assault weapons and a 10 round limit for magazines. The type of assault rifle used in Aurora, for example, when paired with high capacity magazines, has one purpose: to pump out as many bullets as possible, as quickly as possible – bullets often designed to inflict maximum damage. While such a ban would not eliminate the possibility of a mass shooting, it would likely reduce the extent of the damage and loss of lives that could be inflicted in such a situation. The shooters at Virginia Tech, Tucson, Aurora, and Newtown all used magazines holding more than 10 rounds. These high capacity magazines, which currently come standard with many handguns and rifles, enable any semiautomatic weapon to be used as an instrument of mass violence.
We need to make our schools safer. Each school is different and should have the flexibility to address its most pressing needs. Some school will want trained and armed police; others may prefer increased emergency training and counseling services. Either way, each community should be able to choose what is best to protect its own students and teachers. New resources should be provide to hire school psychologists, social workers, and counselors to support students struggling with mental health issues and thereby help to avert a crisis before it occurs. School security systems and safety equipment should be available, and every school should have a high-quality emergency plan in place.
We need to keep guns out of the hands of people with serious mental illness, but we also need to identify mental health issues early and help individuals get the treatment they need, before dangerous situations develop. Teachers and others who regularly interact with students are in the best position to recognize young people who need help and ensure they are referred for mental health services. The President has proposed stipends and tuition reimbursements to train more than 5000 additional mental health professions to serve students and young people; he has also proposed that health insurance plans cover mental health benefits at parity with other benefits.
While most American believe that the Second Amendment guarantees an individual’s right to bear arms, they also believe that we all share a responsibility to take all reasonable steps to ensure that guns are used safely and don’t fall into the wrong hands. The President’s proposals recognize both our right and our obligations.
John S. Leonardo
United States Attorney
District of ArizonaRELEASE NUMBER: 2013-007_Letter to the Editor on Gun Control
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/Jury Convicts U.S. Woman Residing in Mexico of Trafficking MethamphetamineRead the Press Release
CORPUS CHRISTI, Texas – A federal jury in Corpus Christi has convicted Jennifer Ellen Marie Rodriguez, 31, a U.S. citizen residing in Reynosa, Mexico, on one count of possessing with intent to distribute more than 10 kilograms of methamphetamine, United States Attorney Kenneth Magidson announced today. The jury returned its verdict just moments ago following a three-day trial and less than an hour of deliberation.
During the trial, the government presented testimony that Rodriguez was pulled over by a Texas Department of Public Safety trooper on June 23, 2012, near Encino. During that traffic stop, Rodriguez claimed to be traveling to San Antonio to attend her grandfather’s funeral. Rodriguez did not know the name or location of the funeral home and did not have appropriate attire expected for such an event.
Rodriguez provided consent to search her vehicle and was arrested after the methamphetamine was discovered hidden in a void behind the vehicle’s dashboard. The government also provided evidence that Rodriguez’s grandfather was a lifelong resident of Michigan and had passed away in 2011.
Rodriguez admitted at trial that she made up the story about the funeral. She testified she did not know the drugs were hidden in her vehicle, but was driving to San Antonio to exchange the vehicle for her kidnapped cousin. Rodriguez claimed that on the previous day, her cousin was kidnapped in Mexico and kidnappers demanded she deliver the vehicle to San Antonio in exchange for her cousin.
The government countered with evidence Rodriguez never told this story to law enforcement at the time of her arrest. In fact, the government demonstrated that she had only made the claim just a few days before trial began.
Rodriguez is scheduled to be sentenced on April 24, 2013, at which time she faces a mandatory minimum of 10 years imprisonment and up to life imprisonment, as well as a possible $10 million fine. Rodriguez will remain in custody pending that hearing.
This case was investigated by Homeland Security Investigations and prosecuted by Assistant United States Attorney Chad W. Cowan.
Joliet Man Pleads Guilty to Setting Fire in 2007 to Home of Neighboring African-American FamilyRead the Press Release
CHICAGO — A Joliet man is facing an agreed maximum 10-year prison sentence after pleading guilty today to a federal civil rights crime for setting fire to the home of an African- American family on his street in 2007. The defendant, BRIAN JAMES MOUDRY, admitted that at approximately 4 a.m. on June 17, 2007, he carried a can containing gasoline to the home, splashed the gasoline on the residence and ignited it. No one was injured, although the home was occupied by eight children and an adult at the time of the fire.
Moudry, 36, formerly of the 300 block of South Reed Street, Joliet, pleaded guilty to using fire to interfere with the housing rights on the basis of race under the terms of an agreement that, if accepted, provide he will be sentenced to the maximum of 10 years on that count. U.S. District Judge Robert Gettleman scheduled sentencing for 10 a.m. on April 26.
Moudry has remained in federal custody without bond since he was arrested on May 30, 2012.
“One of our most important responsibilities is to protect members of all racial and ethnic groups from intimidation and violence,” said Gary S. Shapiro, Acting United States Attorney for 2 the Northern District of Illinois, who announced the guilty plea with Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
According to the plea agreement, Moudry was upset that an African-American family rented a house at 318 South Reed St., on the same block as his house. He admitted that he set the fire because African-Americans were occupying the home, and that he intended to interfere with their continued ability to rent the residence and to intimidate the owner from continuing to rent to African-Americans.
The government is being represented by Assistant U.S. Attorneys Nancy DePodesta and Steven Dollear.
Plea Agreement
Informational: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on January 17, 2013, before U.S. Magistrate Judge JEREMIAH C. LYNCH, the following individuals were arraigned:
ERIC DUFRESNE, a 39-year-old resident of Stevensville, appeared on a charge of possession of child pornography. If convicted of this charge, DUFRESNE faces possible penalties of 10 years in prison, a $250,000 fine, and lifetime supervision. Assistant U.S. Attorney Cyndee L. Peterson is the prosecutor for the United States. The investigation was a cooperative effort between the Internet Crimes Against Children (ICAC) Task Force, the Missoula County Sheriff's Office and the Montana Division of Criminal Investigation.
TERRANCE LAURENT TAYLOR, a 30-year-old resident of Alameda, California, appeared on a charge of tampering with a witness. He is currently released on special conditions. If convicted of this charge, TAYLOR faces possible penalties of 20 years in prison, a $250,000 fine, and 5 years supervised release. Assistant U.S. Attorney Cyndee L. Peterson is the prosecutor for the United States. The investigation was conducted by the United States Marshals Service.
JOSHUA EMIL RUNION, age 39, appeared on a charge of counterfeiting obligations or securities of the United States. He is currently detained. If convicted of this charge, RUNION faces possible penalties of 20 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Timothy J. Racicot is the prosecutor for the United States. The investigation was conducted by the U.S. Secret Service.
CURTIS KEITH TICHENOR, a 52-year-old resident of Helena, appeared on charges of robbery, being a felon-in-possession of a firearm, and possession with intent to distribute methamphetamine. He is currently detained. If convicted of these charges, TICHENOR faces possible penalties of 20 years in prison, a $250,000 fine, and 5 years supervised release. Assistant U.S. Attorney Timothy J. Racicot is the prosecutor for the United States. The investigation was a cooperative effort between the Federal Bureau of Investigation, the Missoula Police Department, and the High Intensity Drug Trafficking Area (HIDTA) Task Force.
THOMAS JOSEPH SPOTTED EAGLE, a 30-year-old resident of Ronan, appeared on charges of conspiracy to distribute marijuana and the use of a communications facility in furtherance of a drug-trafficking crime. He is currently released on special conditions. If convicted of these charges, SPOTTED EAGLE faces possible penalties of a mandatory minimum of 5 years and could be sentenced to 40 years, a $2,000,000 fine, and 4 years supervised release. Assistant U.S. Attorney Jessica T. Fehr is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation Task Force.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Indictment Charging Two New Jersey Men with Mortgage Fraud, Making False Statements, and Conspiracy to Defraud the United States Unsealed Following ArrestRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that an indictment charging two New Jersey residents for conspiring to defraud the United States, using false documents and making false statements in connection with a Monroe County residence mortgage loan insured by the Federal Housing Administration of the U.S. Department of Housing and Urban Development was unsealed today. The indictment returned on January 8, was sealed pending their arrest.
According to United States Attorney Peter J. Smith, the defendants, David Sacci, age 46, of Bradley Beach, New Jersey, and Martin Sacci, age 64, of South Plainfield, New Jersey, are charged with committing the offenses in 2007 and 2008, when both men worked as loan officers for Aurora Financial, a financial services firm operating in Pennsylvania, New Jersey and other states. The fraud and false statements were allegedly in connection with a mortgage insured by the FHA for a residential property in Long Pond, Monroe County, Pennsylvania.
The indictment also seeks the forfeiture of all property and proceeds obtained as a result of the alleged fraudulent conduct.
Both defendants were arraigned before U.S. Magistrate Judge Thomas M. Blewitt. Trial in the case is scheduled for March 18, 2013. Both defendants were released pending trial.
The charges stem from an investigation by the Department of Housing and Urban Development (HUD).
Another defendant connected to the scheme, Patricia Chmura, previously pleaded guilty to HUD fraud charges and is awaiting sentencing.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is 14 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
IRS Employee Pleads Guilty to Falsely Certifying the Number of Hours He WorkedRead the Press Release
Baltimore, Maryland - IRS employee Antonio Keith Willabus, age 47, of Laurel, Maryland pleaded guilty today to falsely certifying on his time and attendance records that he worked 353.1 hours in 2012 when in fact he had not.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Robert Geary of the Treasury Inspector General for Tax Administration.
According to his plea agreement, Willabus was a full time management and program analyst with the information technology service of the IRS. His office was located in New Carrollton, Maryland. During part of 2012, Willabus was permitted to work from home on Mondays and Tuesdays.
In January 2012, the Treasury Inspector General for Tax Administration(TIGTA) began investigating Willabus’ time and attendance. The personal recording card Willabus was required to use to record his entry and exit at his office showed that Willabus rarely spent more than a few hours in the office on the days he was supposed to be there. Surveillance video of the building lobby showed that Willabus’ entries and exits were infrequent. People in adjacent offices rarely ever saw Willabus. His supervisors and coworkers frequently could not find Willabus, and were frustrated and perplexed when he did not respond to their emails during working hours.
On Monday and Tuesday of May 7 and 8, 2012, when Willabus was supposed to be working from home, TIGTA agents observed Willabus leave his house at 8:15 a.m. and then spend the day driving to locations in Baltimore. Agents believed Willabus was preparing to set up a bar business in Baltimore. He was seen moving a freezer from his truck into a bar building. Willabus did not return home or go into his office during his regular working hours on either day. On May 11, 2012, he entered data into his office time and attendance system claiming that he worked full days on May 7 and 8.
Cell site records from January through May 8, 2012 showed that Willabus frequently made calls on his cell phone from locations other than his home or office during the hours that he was supposed to be working. For work days between January 13 and June 8, 2012, Willabus falsely claimed to be working 353.1 hours that he did not actually work, for which he received a salary of $24,427.45. Willabus will be required to pay restitution in that amount.
Willabus faces a maximum sentence of five years in prison and a $250,000 fine for making and using a false writing in a matter within the jurisdiction of the executive branch. U.S. District Judge George L. Russell III scheduled sentencing for April 18, 2013 at 10:45 a.m.
United States Attorney Rod J. Rosenstein praised the Treasury Inspector General for Tax Administration for its work in the investigation and thanked Assistant U.S. Attorney Hollis Raphael Weisman, who is prosecuting the case.