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16 January 2013
Federal Grand Jury Indicts Rocky and Leon Houston for Federal Firearms ViolationsRead the Press Release
KNOXVILLE, Tenn. – On Tuesday, Jan. 15, 2013, a federal grand jury in Knoxville returned a 14-count indictment against Rocky Houston, 52, charging him with being a felon in possession of firearms. A one-count indictment was also returned again Leon Houston, 54, for possession of firearms while being an unlawful user of controlled substances.
Both Houstons are residents of Ten Mile, Tenn. If convicted, each faces up to 10 years in prison and a fine of up to $250,000.
Arraignment for Rocky Houston is scheduled for 3:00 p.m., Wednesday, Jan. 16, 2013, in U.S. District Court in Knoxville. An arraignment and detention hearing for Leon Houston is scheduled for 1:30 p.m., Thursday, Jan. 17, 2013, also in U.S. District Court in Knoxville.
Members of the public are reminded that these are only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Faribault Man Pleads Guilty to Bank FraudRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 39-year-old Faribault man pleaded guilty to writing 127 fraudulent checks to himself. Ronald Leo Schaeffer pleaded guilty to one count of bank fraud in connection to the crime. Schaeffer was charged on December 6, 2012, and entered his plea before United States District Court Judge David S. Doty.
In his plea agreement, Schaeffer admitted that from August of 2008 through April of 2012, he stole approximately $432,504.10 from his employer, Environmental Tillage Systems, Inc. (“ETS”). ETS, an agricultural manufacturing company in Faribault, hired Schaeffer as its sole in-house accountant. Among other duties, he was responsible for using the QuickBooks accounting software to record information regarding payments owed by ETS to vendors and employees.
Schaeffer admittedly wrote approximately 127 fraudulent checks against the ETS checking account, in amounts ranging from approximately $400 to $12,000, for deposit into his personal account. To conceal his actions, he also made false entries in ETS’s QuickBooks accounting records in an effort to make it appear as if the checks were issued to legitimate ETS vendors.For a period of time, Schaeffer had the authority to use a signature stamp to validate company checks. Beginning in November of 2010, he was directed to obtain the actual signatures of ETS’s CEO or CFO on all checks before disbursing them. At that point, he began forging the signature of the CEO or CFO on any check he wrote to himself. He used the money he stole to build a lake home in Elysian, Minnesota, and make payments on his auto and home-equity loans.
For his crime, Schaeffer faces a potential maximum penalty of 30 years in federal prison, as well as possible fines and orders of forfeiture. Judge Doty will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Benjamin F. Langner.Excelsior Springs Man Sentenced for $3.5 Million Securities Fraud, False Tax ReturnsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, and Chris Koster, Missouri Attorney General, announced that an Excelsior Springs, Mo., man was sentenced in federal court today on charges related to several investment schemes in which at least a dozen victims lost more than $3.5 million.
Daniel Meredith, 51, of Excelsior Springs, was sentenced by U.S. District Judge Brian C. Wimes to 11 years in federal prison without parole, which is the longest penalty recommended under the federal sentencing guidelines. The court also ordered Meredith to pay $3,572,526 in restitution to his victims.
On Aug. 7, 2012, Meredith pleaded guilty to one count of securities fraud and two counts of filing false tax returns. Meredith admitted that he obtained more than $3.5 million by defrauding at least 12 victims in Missouri and Kansas through various schemes through the end of March 2012. His victims were his friends and neighbors. Five of the victims invested hundreds of thousands of dollars and one victim lost millions of dollars. According to court documents, Meredith cheated one victim out of an additional $28,000 several months after confessing his crimes to federal authorities, while he was negotiating his guilty plea. One victim was forced to file for bankruptcy as a result, according to court documents, and an elderly victim’s life savings was decimated, causing his family severe financial hardship.
Meredith’s fraud schemes included a Bolivian land scheme and fake Scooter’s Coffeehouse franchise agreements. Instead of investing their money as promised, he lost it at the blackjack tables at Ameristar and Isle of Capri. He spent the rest on extravagant purchases, including fine horses, lavish trips and a beautiful rental home near Excelsior Springs on acreage with private stables.
Bolivian Land Scheme
Meredith solicited investors beginning in 1995 to collect money for his purported Bolivian land deal. Meredith told prospective investors that his father had been in the CIA in the 1960s and that somehow he had a special opportunity to obtain valuable property in Bolivia. Meredith said his land is comprised of 300,000 acres, including a mansion, an air strip, oil fields, gold mines, and other valuable attributes. He promised investors lavish returns on their investments.
Meredith told elaborate false tales to convince investors to continue giving him money. To keep investors interested, he would tell tales of purported telephone calls with former President Bill Clinton, and he circulated a Photoshopped picture of himself with President George W. Bush. Meredith claimed to know the president of Bolivia and claimed Bolivian citizenship. Meredith claimed he once met with George Bush and that they flew down to Crawford, Texas. He frequently claimed that he was flying out of Whiteman Air Force Base to meet with government officials in Washington, D.C., Crawford and elsewhere. He also provided false excuses why he could not pay their money back.
Meredith went to great lengths to make these stories seem plausible, even paying someone to pose as an NSA agent. Meredith spun tales of a hijacked plane and provided an investor with a locked briefcase purportedly containing a fortune, but actually containing bricks.
Meredith admitted that he defrauded one victim out of $1.87 million and other victims out of an additional $950,000. One of the checks written by an investor in August 2007 was used in part to pay a cabinet-maker who had worked on Meredith’s former home. The cabinet-maker said that Meredith was “throwing around $100 bills.” Meredith gutted the house and rebuilt the inside in extravagant fashion, which included tile floors in the garage with his initials.
Scooter’s Coffeehouses
From May 15 to June 30, 2007, Meredith solicited money from individuals for investment in purported Scooter’s Coffeehouses when, in actuality, he had no connection with Scooters. Meredith received $90,000 from two victims who believed that they were investing in Scooter’s Coffeehouses. One victim also provided Meredith with an additional $25,000 in cash. Meredith used the money for gambling and other personal expenses. Meredith did not pay these victims back.
Meredith told one of these victims that his father ran the Meredith Publishing Corporation in Des Moines. The Missouri Attorney General’s Office received a letter from the General Counsel of the Meredith Corporation stating: “…a man named Dan Meredith…has on occasion been making representations that he has access to, and perhaps will inherit, the fortune of the Meredith family. He uses this supposed connection to lure others into questionable business deals. The Meredith family obviously is greatly troubled by these false representations and wants them to cease immediately. Dan Meredith’s actions are particularly troublesome to the Meredith family because our research indicates that he has a prior criminal record, including incarceration.”
Tax Fraud
In 2006 and 2007, Meredith received $510,900 from others under false pretenses. He did not use the money for the purposes intended, and he did not report this income on his tax returns. According to today’s plea agreement, Meredith has an additional tax due and owing for 2006 and 2007 of $139,679.
Although he was required to do so, according to the plea agreement, he did not file returns for 2008 through 2010. During those years, Meredith received at least $1.6 million from the Bolivian land scheme. The total dollar amount Meredith received from his schemes but did not pay taxes on is at least $3.5 million.Use of Proceeds
Meredith owns multiple horses and spends significantly on horse-related items and activities. For example, Meredith wired $19,550 to Oklahoma in 2010 to purchase three horses.
This case was prosecuted by Assistant U.S. Attorney Daniel M. Nelson and Missouri Assistant Attorney General Lauren Barrett. It was investigated by IRS-Criminal Investigation, the Missouri Attorney General’s Office and the Missouri Department of Revenue, Criminal Tax Investigation Bureau.
Meredith had an extensive gambling habit. For 2007 alone, Meredith’s losses tracked at Ameristar Casino totaled $76,454. From 2008 through October 2011, Meredith’s losses totaled an additional $555,863.Eureka Man Pleads Guilty to Intent to Distribute Heroin, Possession of Firearms in Furtherance of Drug TraffickingRead the Press Release
SAN FRANCISCO – Robert Wildman, 31, pleaded guilty in federal court in San Francisco yesterday afternoon to one count of possession with intent to distribute heroin and one count of possession of firearms in furtherance of a drug trafficking crime, announced United States Attorney Melinda Haag.
During yesterday’s plea hearing before U.S. District Court Judge Richard Seeborg, Wildman admitted that on Aug. 22, 2012, he was sitting in the driver’s seat of a Jeep Grand Cherokee in a parking lot when he was approached by a Eureka Police Department officer. As the police officer walked towards Wildman’s vehicle, Wildman drove off through the parking lot and then led the officer on a chase through residential streets and onto Highway 101. The chase lasted approximately 30 minutes. Wildman admitted that he ran through red lights and stop signs and also drove into oncoming traffic during the chase. Also during the chase, Wildman threw a loaded M-11 pistol out of the window of his vehicle. Wildman was eventually apprehended after he ran over a spike strip that officers had set up on the highway. Wildman admitted that he knowingly possessed the SKS assault rifle and 19.6 grams of heroin that officers located in his vehicle.
Wildman has been in custody since his arrest. He is scheduled to be sentenced on April 2, before Judge Richard Seeborg in San Francisco. At sentencing, Wildman will face a minimum mandatory sentence of five years and a maximum sentence of life in prison, a fine of up to $1 million and a maximum term of life on supervised release.
The case is being prosecuted by Assistant U.S. Attorney Randy Luskey with the assistance of Daniel Charlier-Smith. This case was investigated by the Federal Bureau of Investigation’s Eureka Resident Agency and the Eureka Police Department.
(Robert Wildman Information )
East St. Louis Man Pleads Guilty to Firearms OffenseRead the Press Release
An East St. Louis man pled guilty in federal district court on January 16, 2013, to an Indictment charging him with the unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Travis D. Summerville, 33, East St. Louis, IL, faces a term of in prison of not more than ten (10) years, a fine up to $250,000, or both, and a term of supervised release of not more than three (3) years when he is sentenced on April 26, 2013. Summerville also agreed to forfeit the firearm he illegally possessed.
The violation occurred on December 13, 2010, when members of the Working Against Violent Elements (WAVE) Task Force went to Summerville’s home to investigate an anonymous tip that drugs were being sold and that firearms were also present. Officers obtained a state search warrant for the home and recovered a 9mm semi-automatic firearm hidden in the basement ceiling next to a bag of suspected marihuana. 9mm shells and additional marihuana were found in Summerville’s bedroom. Summerville admitted possession of the gun in a voluntary statement to law enforcement officers, stating that he bought the gun “off the street” for $70. He also admitted that he hid the gun, along with some marihuana, in the basement of the residence. Finally, Summerville admitted knowing that he could not legally possess a firearm because of a previous felony conviction.
The case is assigned to Assistant United States Attorney Angela Scott.
East Side Los Guada Blood Gang Members Sentenced in Arizona for Violent AssaultRead the Press Release
WASHINGTON – Amorette Hough and Denrica Gloria Medina, two members of the East Side Los Guada Bloods, were sentenced today in Phoenix to serve 33 months in prison and 27 months in prison, respectively, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney John S. Leonardo of the District of Arizona.
Hough, 25, and Medina, 25, both of Scottsdale, Ariz., were sentenced by U.S. District Judge Frederick J. Martone in the District of Arizona. In addition to their prison terms, both defendants were sentenced to three years of supervised release after the completion of the prison sentence
On Oct. 16, 2012, Hough pleaded guilty to violent crime in aid of racketeering. On Sept. 26, 2012, Medina pleaded guilty to violent crime in aid of racketeering. Both guilty pleas were for the July 2009 attack of a member of the Salt River Pima Maricopa Indian Community.
Hough and Medina admitted to being members of the violent street gang known as East Side Los Guada Bloods, or East Side Bloods, which operates on the Salt River Pima Maricopa Indian Community in Scottsdale. According to a second superseding indictment filed on March 28, 2012, East Side Bloods members have warred with rival gang members on the reservation and participated in acts of violence including murder, attempted murder, drug distribution, armed robberies, threatening and intimidating witnesses, and firearms trafficking since the gang’s inception in the 1990s. The war that East Side Bloods maintained with rival gangs formed the basis for the July 2009 attack of a member of the Salt River Pima Maricopa Indian Community.
As part of their pleas in this case, Hough and Medina admitted that they were each part of the East Side Bloods gang that was present on July 26, 2009, at the home of a known East Side Bloods associate. The East Side Bloods gang members that were present were wearing red and burgundy – the colors of the East Side Bloods. Hough and Medina both admitted that they knew the victim was the mother of a rival gang member. Hough admitted that the victim came to the gathering, but did not get out of her vehicle after she arrived. After other East Side Blood members at the party realized the victim was in the vehicle, Hough assisted in forcibly removing the victim from the vehicle. According to court documents, Hough, Medina and others hit and kicked the victim to the point of unconsciousness. Hough and Medina also admitted that they continued to hit and kick the victim after the victim lost consciousness. Hough and Medina admitted that the reason for the assault was retaliation for the victim’s son purportedly committing a violent act against other East Side Blood family members. The victim suffered multiple facial fractures, a fractured left orbital socket and brain injury with swelling.
Co-defendants Denean Medina, Timothy Reyes and Christopher John Mack have pleaded guilty and await sentencing.
Co-defendants Martinez Francisco Jr., Delola Graycene Medina and Rudy Chavarria Jr. are awaiting trial, which is scheduled to begin on April 9, 2013, before U.S. District Court Judge Frederick J. Martone in Phoenix.
Denecio Francisco, 26, of Mesa, Ariz., was charged yesterday in a third superseding indictment for his role in the racketeering conspiracy.
This case is being prosecuted by Trial Attorney Leshia M. Lee-Dixon and Hans Miller of the Organized Crime and Gang Section, and Assistant U.S. Attorney Keith Vercauteren. This case was investigated by the Arizona Department of Public Safety GITTEM Task Force, Mesa, Ariz., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Salt River Pima Maricopa Police Department.
East End Man Sentenced to 262 Months for Gun ChargeRead the Press Release
PITTSBURGH - A resident of Pittsburgh was sentenced in federal court on Jan. 15, 2013, to 262 months incarceration on his conviction of federal firearms offense, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Timothy Wilson, 24.
According to information presented to the court, the defendant is a convicted felon who possessed a loaded sawed-off shotgun on April 20, 2011. The defendant gave a false name at the time of arrest and was wanted for escaping from custody after serving more than five years for multiple armed robberies.
Prior to imposing sentence, Judge Cercone considered that the defendant started his criminal career at age 14 when he assaulted his female victim and continued committing crimes after his multiple violent robberies.
Assistant United States Attorney Ross E. Lenhardt prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives for the investigation leading to the successful prosecution of last name of Timothy Wilson.
Dublin Man Pleads Guilty in A Mortgage Fraud SchemeRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Gordon L. Yocom, 44, of Dublin, Ohio pleaded guilty to conspiracy to commit money laundering for fraudulently obtaining a mortgage loan to finance the purchase of a real estate property in Powell, Ohio. Yocom agreed to forfeit $119,000, which represented the proceeds of this transaction.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Darryl Williams, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation (FBI), announced Yocom’s plea which was entered today before U.S. District Judge Michael Watson.
According to court documents, Yocom owned and operated a mortgage brokerage business called Gordon Lending. Yocom and an employee of his, Nancy Rayfus, worked to arrange for a buyer to purchase a property located at 10577 Durham Place in Powell, Ohio. The buyer was from California, but it was Rayfus’ intent to reside at the property. The purchase contract was negotiated so Rayfus could obtain substantial cash payments at closing through the submission of two false invoices. Yocom knowingly provided funds to Rayfus in the amount of $123,500 for the purpose of funding the majority of the down payment for the purchase this property. Yocom purchased two official checks out of accounts that he controlled. The checks were made payable to Landsel Title. Yocom disguised the fact that he was the one providing the funds by having the bank place a variation of purchaser’s name as the remitter on each of the checks.
Yocom and Rayfus agreed that she would pay back the money used for the down payment from the proceeds of the sale of this property. Rayfus arranged for $350,000 to be paid to her from the seller’s proceeds by submitting false invoices to the lender for renovations supposedly performed at this property by companies under her custody and control. These renovations were never performed, and Rayfus was issued two checks payable to My Home Specialists Network and Norvath Group from Landsel Title in the amounts of $187,500 and $162,500, respectively. Rayfus deposited these funds into her bank accounts and then wrote a check payable to Yocom for $119,900, which Yocom deposited into his bank account. At the time of this deposit, Yocom was aware that these funds were the proceeds of false statements made to the lender.
Conspiracy to commit money laundering is punishable by up to ten years in prison and a fine of up to $250,000, or twice the value of the property involved, whichever is greater.
Yocom was released on bond pending his sentencing, for which a date has not yet been set.
On December 29, 2011, Nancy Rayfus pleaded guilty to one count of money laundering and is scheduled to be sentenced on February 14, 2013.
Stewart commended the cooperative investigation conducted by IRS and FBI agents as part of the Southern Ohio Mortgage Fraud Task Force, along with Assistant U.S. Attorneys Laura Fulton and Dan Brown, who are prosecuting this case.
Department of Justice Will Not Challenge Proposed<br /> New York Hospital Association Gainsharing ProgramRead the Press Release
WASHINGTON – The Department of Justice announced today that it will not challenge a proposal by the Greater New York Hospital Association (GNYHA) to offer a gainsharing program to member hospitals in New York. The department said that the proposed program should not adversely affect competition because hospitals will not exchange any confidential information and because each hospital will independently determine physician gainsharing amounts. According to GNYHA, gainsharing programs are designed to encourage physicians to take into account their use of hospital resources in their decision-making process. The department said that under the program, physicians could receive a share of the savings generated from reducing costs for treating commercial health-insurance and Medicaid and Medicare managed-care patients if the physicians meet hospital-specific quality standards.The department’s position was stated in a business review letter to counsel for GNYHA, from Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division.
In issuing the letter, Assistant Attorney General Baer said, “Based on GNYHA’s representations, the proposed information sharing program is unlikely to facilitate collusion or otherwise raise competitive concerns.”
GNYHA is a trade association of hospitals and continuing care facilities in New York and several nearby states. GNYHA proposes to make available a voluntary gainsharing program to the approximately 100 hospitals that are its New York members.
Using publicly available and historical patient discharge data, an independent contractor of GNYHA will calculate a state-wide best practice norm for certain groups of treatments or procedures. The contractor will then use the data to measure the performance of individual physicians practicing at the participating hospitals relative to the best practice norm.
Each participating hospital will individually determine whether and how to use the performance data to determine physician gainsharing payments. Each hospital’s payment amounts to physicians will be limited by a cap that each participating hospital must independently establish. The cap must comply with all applicable fraud and abuse regulations. GNYHA reserves the right to exclude any hospital from the program if GNYHA believes that the hospital’s proposed cap does not comply with those laws and regulations.
Under the department’s business review procedure, an organization may submit a proposed action to the Antitrust Division and receive a statement as to whether the division currently intends to challenge the action under the antitrust laws based on the information provided. The department reserves the right to challenge the proposed action under the antitrust laws if it produces anticompetitive effects.
A file containing the business review request and the department’s response may be examined in the Antitrust Documents Group of the Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 1010, Washington, D.C. 20530. After a 30-day waiting period, the documents supporting the business review will be added to the file, unless a basis for their exclusion for reasons of confidentiality has been established under the business review procedure.
Dea and State Police Bust Meth Distribution RingRead the Press Release
January 16, 2013David B. Fein, United States Attorney for the District of Connecticut, John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration for New England, and Colonel Danny R. Stebbins of the Connecticut State Police, today announced that a federal grand jury sitting in Bridgeport has returned an indictment charging three Connecticut men and two California residents with conspiring to distribute methamphetamine. The indictment was returned on January 15, 2013.
According to statements made in court, this matter stems from a joint investigation by the Drug Enforcement Administration and the Connecticut State Police's Statewide Narcotics Task Force. The investigation has included the use of court-authorized wiretaps, controlled purchases of methamphetamine, physical surveillance and the use of an undercover officer. The investigation revealed KEVIN WALLIN of Waterbury allegedly received shipments of methamphetamine from individuals in California. On six occasions between September 2012 and January 2013, it is alleged that the undercover officer purchased methamphetamine from WALLIN.
“This case is a model for cooperation between federal and state law enforcement agencies,” stated U.S. Attorney Fein. “The hard work of the DEA and the Connecticut State Police in this case resulted in the dismantling of what we allege was a significant methamphetamine distribution organization that spanned from California to Connecticut.”
The indictment charges the following five individuals with one count of conspiracy to distribute 500 grams or more of a mixture and substance containing methamphetamine, and 50 grams of actual methamphetamine:
KEVIN WALLIN, 61, of Golden Hill Street, Waterbury
KENNETH DEVRIES, also known as "Lyme," 52, of Golden Hill Street ,Waterbury
MICHAEL NELSON, 40, of Buckland Hills Drive, Manchester
CHAD McCLUSKEY, 43, of San Clemente, Calif., KRISTEN LASCHOBER, 47, of Laguna Niguel, Calif.The indictment also charges WALLIN with six counts of possession with intent to distribute methamphetamine.
WALLIN and DEVRIES were arrested on criminal complaints on January 3, 2013. According to statements made in court, a court-authorized search of WALLIN's residence on that date revealed suspected methamphetamine, as well as items that government alleges are drug paraphernalia and drug packaging materials.
McCLUSKEY and LASCHOBER were arrested on criminal complaints in Las Vegas, Nev., on January 10, 2013.
NELSON was arrested yesterday after the indictment was returned.
All five defendants are currently detained, and the investigation is ongoing.
If convicted of the charge of conspiracy to distribute 500 grams or more of a mixture and substance containing methamphetamine, and 50 grams of actual methamphetamine, each of the defendants faces a minimum term of imprisonment of 10 years, a maximum term of imprisonment of life and a fine of up to $10 million. If convicted of the charge of possession with intent to distribute methamphetamine, WALLIN faces a maximum term of imprisonment of 20 years and a fine of up to $1 million, on each count.
U.S. Attorney Fein stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being prosecuted by Assistant United States Attorneys Patrick Caruso and H. Gordon Hall.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Council Bluffs Men Sentenced for Bank BurglaryRead the Press Release
COUNCIL BLUFFS, IA – On January 16, 2013, two Council Bluffs men, Robert Glade Edie III (age 35) and Patrick Allen Eggerling (age 19) were sentenced in United States District Court in Council Bluffs, Iowa for the burglary of Farmer’s Bank and Trust in Earling, Iowa, announced United States Attorney Nicholas A. Klinefeldt. United States District Court Judge John A. Jarvey sentenced Robert Edie to 34 months in prison, to be followed by 24 months of supervised release. The Judge sentenced Patrick Eggerling to 15 months in prison, to be followed by 36 months of supervised release. The Judge also ordered each defendant to pay a $100.00 special assessment to the Crime Victim Fund, and ordered that both defendants were jointly and severally liable for $10,918.80 in restitution.
Both defendants had previously entered guilty pleas to the bank burglary charge. The charge arose out of an April 12, 2012 incident in which the defendants during the night entered an exterior lobby of the Farmer’s Bank and Trust in Earling, Iowa, attached a log chain to an ATM, and using a stolen motor vehicle, pulled the ATM from its base and drug the ATM from the bank lobby. The defendants then put the ATM in the back of the stolen SUV and fled Earling, Iowa. The ATM contained approximately $6,000.00 when stolen by the defendants. A high speed chase ensued in which Harrison County Sheriff deputies, Pottawattamie County Sheriff deputies, and Iowa State Patrol troopers pursued the fleeing defendants. The chase included defendants driving at speeds in excess of 90 miles per hour in the wrong direction on the interstate, until Defendant Edie, driving the vehicle, lost control of the vehicle, with the vehicle becoming airborne, leaving the interstate, crashing through a fence, and coming to rest in a field. Law enforcement personnel captured the defendants hiding in a ravine near the wrecked vehicle, and recovered the ATM, still containing the stolen money. Both defendants were on State of Iowa probation or parole at the time of the bank burglary.
This case was investigated by the Shelby County Sheriff’s Department and the Federal Bureau of Investigation, with assistance from the Harrison County Sheriff’s Department, the Pottawattamie County Sheriff’s Department, and the Iowa State Patrol. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Cleveland Man Charged with Being A Felon in Possession of AmmunitionRead the Press Release
A criminal indictment was filed in U.S. District Court today charging a Cleveland man with being a felon in possession of ammunition, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Raymone “Ramone” Clements, 42, was found to have one round of .357-caliber ammunition and two rounds of .22-caliber ammunition on Dec. 20, 2012, despite previous convictions in the Cuyahoga County Court of Common Pleas for rape (2006), drug trafficking (2003) and aggravated robbery (1991), according to the indictment.
“This office places a high priority on keeping firearms and ammunition out of the hands of those who are forbidden by law from obtaining them,” Dettelbach said. “Whether is a person using a gun to commit a violent crime, a felon illegally obtaining ammunition or a straw purchaser trying to circumvent the law, we will aggressively pursue those who would violate our nation’s firearms laws.
“We will continue to work side by side with our federal, state, county and local law enforcement partners to make sure those individuals who illegally possess firearms and/or ammunition are held accountable for their actions,” said ATF Special Agent in Charge Robin Shoemaker, Columbus Field Division.
The Unites States Attorney’s Office for the Northern District of Ohio filed 176 indictments for violations of federal firearms laws last year, with the average sentence being more than six years in prison.
This case is being prosecuted by Assistant U.S. Attorney Kelly L. Galvin following an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives and Cleveland Heights Police Department.
The charge carries a maximum penalty of 10 years in prison. If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal records, the defendant’s role in the offenses and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Anyone with information about Clements’ whereabouts is asked to call 1-800-ATF-GUNS or the Cleveland Heights Police Department 1-216-321-1234.
Chief Executive Officer of Superior Discount Coins Appears in Court in Colorado for Defrauding Gold Coin Investors Out of over $2.4 MillionRead the Press Release
DENVER – James P. Burg, age 61, formerly of Fairplay, Colorado, faces fraud charges related to a scheme to defraud gold coin investors, the U.S. Attorney’s Office, the FBI, the IRS-CI and the U.S. Postal Inspection Service announced. Burg was indicted by a federal grand jury in Denver on November 6, 2012 for charges of wire fraud, mail fraud, money laundering, and failure to file tax returns. The indictment remained sealed until his arrest in California on November 29, 2012. Burg then appeared in U.S. District Court for the Southern District of California. In court there Burg was ordered to be detained and transferred by U.S. Marshals from California to Colorado. Burg’s first Colorado court appearance occurred on January 2, 2013, where he was advised of his rights and the charges pending against him. He appeared in court on January 7, 2013 and again on January 14, 2013 for the purpose of a detention hearing. On January 14, 2013, U.S. Magistrate Judge Michael E. Hegarty ordered that Burg could be released prior to trial on a $50,000 secured property or cash bond. Once released on that pre-trial bond, Magistrate Judge Hegarty ordered Burg to a halfway house (once bed space is available), pending the resolution of the criminal case.
According to the indictment, beginning on or about October 1, 2007, and continuing through and including on or about January 12, 2012, in Colorado and elsewhere, James P. Burg devised and intended to devise a scheme to defraud customers that ordered coins from a business known as Superior Discount Coins and Gold Run Investments and for obtaining money from those customers by means of materially false and fraudulent pretenses, representations and promises. Burg took and received $2,464,099 from customers that ordered coins and he failed to deliver the coins as promised.
As part of the scheme, Burg represented that he was the Chief Executive Officer of a company known as Superior Discount Coins (“SDC”) and that SDC was in the business of selling coins. Burg also conducted business using a company known as Gold Run Investments (“GRI”) and represented that GRI was in the business of selling coins. At times, Burg operated GRI using the alias “Tim Burke”. Burg advertised and solicited customers through radio advertisements and over the internet using websites he controlled, including; www.superiordiscountcoins.com, www.yourcoinbroker.com, and www.goldruninvestments.net
Burg misrepresented and promised customers that if they ordered coins from SDC or GRI and paid him for those coins, he would deliver the coins to them or to accounts designated by them. He sent, and caused to be sent to customers that ordered coins from SDC or GRI invoices stating amounts of money owed for the coins and, in some cases, providing information about a bank account to which the customers should transfer their money to purchase the coins.
The money Burg received from customers was not used to purchase coins for such customers but instead he converted the money to his own use and benefit. Burg refused to refund money to customers in several instances where the customers requested a return of their money after he failed to deliver coins as originally promised. To prevent the scheme’s detection, Burg sometimes filled customers’ orders for coins only after such customers threatened to take legal action or report him to law enforcement authorities. Burg used one customer’s payment for coins to refund funds to another customer.
For calendar years 2006, 2007, 2008 and 2009, Burg failed to file income tax returns with the Internal Revenue Service as required by law. These returns were required to be filed with the IRS on April 15 following the subsequent above mentioned years.
“A core mission of the U.S. Attorney’s Office is to protect victims from scam artists who try to trick them out of their hard earned money,” said U.S. Attorney John Walsh.
“The FBI has made protecting innocent investors a priority,” said FBI Special Agent in Charge James Yacone. “As such, we will vigorously investigate those who engage in schemes to swindle and defraud.”
“The U.S. Postal Inspection Service has no shortage of investment investigations and this is another example of greed overcoming honest business practices,” said Adam Behnen, Inspector in Charge, with the U.S. Postal Inspection Service. “These criminal charges illustrate the commitment of the U.S. Postal Inspection Service to protect the American public by investigating individuals who use the U.S. Mail to further their schemes.”
“Fraud schemes are often described as a house of cards and will eventually fall apart exposing the individuals responsible,” said Stephen Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office. “This is a great example of federal agencies working together.”
Burg was charged with six counts of wire fraud, nine counts of mail fraud, four counts of money laundering and four counts of willful failure to file tax returns. If convicted of the wire fraud and mail fraud counts, he faces not more than 20 years in federal prison, and a fine of up to $250,000 per count. If convicted of the money laundering counts, he faces not more than 10 years in federal prison, and a fine of up to $250,000 per count. If convicted of failing to file tax returns he faces not more than 1 year in federal prison, and a fine of up to $25,000 per count.
This case was investigated by special agents with the Federal Bureau of Investigation (FBI), the IRS-Criminal Investigation and the U.S. Postal Inspection Service.
Burg is being prosecuted by Assistant U.S. Attorney Timothy Neff.
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
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Chadds Ford Man Pleads Guilty to Copyright InfringementRead the Press Release
PHILADELPHIA - Michael Moore, 45, of Chadds Ford, PA, pleaded guilty today to infringing copyrighted work related to broadcasts of hockey games. Moore admitted that he copied and sold, over the internet, copyrighted recordings of hockey games, parts of hockey games, and other hockey-related material between May 15, 2006 and November 10, 2006. He also admitted to copyright infringement between 2007 and 2010 as well.
Moore operated the website WWW.HDHOCKEY.TV which offered DVDs containing recordings of copyrighted television broadcasts of hockey games, and other copyrighted works, from the National Hockey League and other professional hockey leagues, for $19.99 plus shipping. Moore also operated WWW.BROADSTREETBULLY.COM. For $9.95 per month, subscribers to the website could download an unlimited number of video clips of copyrighted television broadcasts of hockey games, and other copyrighted works such as team and player profiles, from the NHL and other professional hockey leagues. Neither site had the permission of the NHL or any other professional hockey league to reproduce or distribute these recordings. Among the products he sold was an Olympic Games hockey match. When FBI agents searched Moore’s house in 2008, they seized more than 2,000 VHS tapes of copyrighted broadcasts of hockey games and hockey-related material, and commercial-grade equipment for copying the contents of VHS tapes to DVDs. Also seized was equipment to record satellite broadcasts, and equipment to copy multiple DVDs at a time.
U.S. District Court Judge Berle M. Schiller scheduled sentencing for April 15, 2013. Moore faces a maximum statutory sentence of five years in prison, a fine of up to $250,000. He has also agreed to forfeit $155,612 in proceeds as well as certain seized items.
The case was investigated by the Federal Bureau of Investigation and the United States Postal Inspection Service, and is being prosecuted by Assistant United States Attorney Albert S. Glenn and Trial Attorney Evan Williams of the Criminal Division's Computer Crimes and Intellectual Property Section, United States Department of Justice.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525California Rap Artist Under Indictment Rearrested for Continuing Credit Card FraudRead the Press Release
A Southern California rap artist who performs under the name “Guerilla Black,” was arrested this morning following allegations he committed new financial frauds while he was on pretrial release, announced U.S. Attorney Jenny A. Durkan. CHARLES TONY WILLIAMSON, 33, of Torrance, California, was taken into custody this morning following a lengthy investigation by the Manhattan Beach Police Department and the U.S. Secret Service (USSS) Electronic Crimes Task force in Seattle and USSS Los Angeles Fraud Task Force. On June 20, 2012, WILLIAMSON was charged with 22 counts of various felony offenses including Conspiracy to Access Protected Computers to Further Fraud, to Commit Access Device Fraud, and to Commit Bank Fraud; Accessing a Protected Computer without Authorization to Further Fraud; Access Device Fraud; Bank Fraud; and Aggravated Identity Theft. The new filing alleges WILLIAMSON continued to use illegally obtained credit card numbers for fraud, even after his indictment in the Western District of Washington.
WILLIAMSON is scheduled to appear in U.S. District Court in the Central District of California today.
According to records filed in the case, Manhattan Beach Police became aware of WILLIAMSON’s ongoing frauds in mid-November 2012. Their investigation revealed that WILLIAMSON was using different ‘runners’ in the Los Angeles area to use counterfeit credit cards to purchase gift cards at a variety of stores. The runners kept some of the gift cards but allegedly returned the bulk of the ill-gotten gain to WILLIAMSON. Working with the U.S. Secret Service Electronic Crimes Task Force in Seattle and Los Angeles, investigators were able to trace the numbers on some of the seized counterfeit cards, discovering that many of the numbers were issued by foreign banks: Corner Banca, (Switzerland); Guaranty Trust Bank (Nigeria); National Westminster Bank (England); and Poste Italiante (Italy). Because the banks are overseas, it can take longer for the fraud to be detected and the card numbers cancelled. Evidence uncovered in the case revealed WILLIAMSON was purchasing the credit card data from various “carding” sites operated by criminals in Eastern Europe.
WILLIAMSON is already indicted for a scheme where he purchased that same type of information from two co-conspirators who have already pleaded guilty in U.S. District Court in the Western District of Washington. David Benjamin Schrooten, 21, a Dutch citizen arrested in Romania, where he operated a carding website, is scheduled for sentencing next month. Christopher A. Schroebel, 21, of Keedysville, Maryland, who hacked into point of sale systems to steal credit card information was sentenced to seven years in prison in August 2012.
The case is being investigated by the Manhattan Beach Police Department, the U.S. Secret Service Electronic Crimes Task Forces in Seattle and the U.S. Secret Service Los Angeles Fraud Task Force (LAFTF). The Seattle Police Department is a key part of the Seattle Task Force. The case is being prosecuted by Assistant United States Attorney Kathryn Warma.
CEO and CFO of Assisted Living Facility Chain Sentenced<br /> in North Carolina to Five Years in Prison for Tax FraudRead the Press Release
Ronald E. Burrell, former chief executive officer (CEO) of Caremerica Inc., and Michael R. Elliott, former chief financial officer (CFO) of Caremerica Inc., were sentenced today in Wilmington, N.C., the Justice Department and Internal Revenue Service (IRS) announced. Judge James C. Fox sentenced both Burrell and Elliott to 60 months imprisonment and ordered them each to pay restitution of over $4.8 million.
Burrell, a resident of Wilmington, N.C., pleaded guilty to conspiracy to defraud the IRS on Jan. 3, 2012, and Elliott, a resident of Loris, S.C., pleaded guilty to conspiracy to defraud the IRS on July 18, 2012.
According to the charging documents, Burrell and Elliott co-owned and operated a chain of assisted living facilities (ALFs) in North and South Carolina. The ALFs were managed by Caremerica Inc., a Leland, N.C.-based company that Burrell and Elliott also owned and operated. Burrell was the president and CEO for Caremerica, the Caremerica ALFs and other related companies. Elliott, formerly a certified public accountant, served as the CFO and tax return preparer for the Caremerica companies. Burrell and Elliott were the corporate officers responsible for ensuring that the Caremerica companies collected, reported and paid over federal employment taxes to the IRS. However, with Burrell and Elliott at the helm, the Caremerica companies accrued more than $4.5 million in employment tax liabilities between approximately 2003 and 2006. Among other things, Burrell and Elliott filed, or caused to be filed, false IRS forms that reported full payment of the employment taxes due, when in fact only a small fraction of the taxes, or none at all, were paid.
Charging documents further allege that in 2003, Burrell and Elliott acquired majority ownership of Partners Pharmacy Services Inc. (PPS), which provided prescription drug and related services to the Caremerica ALFs. In April 2005, Burrell and Elliott sold PPS to a subsidiary of Omnicare Inc. At the closing, Burrell and Elliott received $1.6 million and $1.4 million, respectively. The PPS sale proceeds were disbursed at a time when the IRS was attempting to collect unpaid employment taxes from the Caremerica companies, as well as from Burrell personally. To prevent the IRS from discovering their PPS proceeds, Burrell and Elliott took active steps to conceal them. Among other things, Burrell formed a nominee company in his wife’s name through which he funneled a portion of his PPS sale proceeds in order to avoid IRS collection action. As a result of his concealment efforts, Burrell deceived the IRS into accepting a $29,000 settlement on a $300,000 personal tax liability and opened another assisted living facility with the PPS proceeds. Elliott directed his $1.4 million share to be wired into the bank account of his then-girlfriend. Burrell and Elliott then filed false 2005 federal income tax returns that failed to report the PPS proceeds. Elliott and Burrell also obstructed justice by making false statements under oath in bankruptcy proceedings and in IRS disclosure forms.
Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, commended the efforts of the IRS - Criminal Investigation special agents who investigated the case, and Tax Division Trial Attorneys Adam Hulbig and Todd Ellinwood, who prosecuted the case.
Buffalo Man Sentenced on Drug ChargeRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Darryl Parker, 32, of Buffalo, N.Y., who was convicted of using a communication facility to commit a drug felony, was sentenced to 27 months in prison and one year supervised release by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Mary Clare Kane, who is handling the case, stated that between January 2008 and July 29, 2008, Parker was intercepted over wiretaps ordering cocaine from a source of supply. The defendant was indicted along with 33 others following an investigation into drug dealing and weapons possession in the Central Park area of the City of Buffalo. A total of 30 defendants have been convicted.
The sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Region and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Brazilian Husband and Wife Plead Guilty in Florida to Human SmugglingRead the Press Release
WASHINGTON – Two Brazilian nationals pleaded guilty today in Miami to smuggling undocumented migrants to the United States for profit, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and U.S. Immigration and Customs Enforcement (ICE) Director John Morton.
Juliana Rose Tome-Froes, 36, and her husband, Fabio Rodrigues Froes, 49, pleaded guilty before U.S. District Court Judge Federico A. Moreno in the Southern District of Florida to six counts and two counts, respectively, of bringing and attempting to bring aliens to the United States for commercial advantage and private financial gain.
According to plea documents, from at least October 2008 until approximately September 2010, the defendants organized, operated and managed a human smuggling network that spanned from Brazil to France, England, The Bahamas and the United States. The defendants met with undocumented migrants and negotiated forms of payment to be smuggled into the United States. Before the undocumented migrants departed Brazil, the defendants instructed them to act like tourists and explained that the itinerary through Europe would support a tourist cover story. In exchange for approximately $16,000, Tome-Froes, with assistance from Froes, arranged air transportation from Brazil to Paris, then London and Nassau, Bahamas. Tome-Froes arranged the undocumented migrants’ lodging in Paris and Nassau, and then instructed them to fly to Freeport, Bahamas, where they waited for a boat to transport them to the United States. For the final leg into the United States, Tome-Froes coordinated with various individuals in South Florida to pilot a small boat to Freeport, which picked up the undocumented migrants and transported them to the United States.
At sentencing, scheduled for March 21, 2013, Juliana Tome-Froes faces a maximum penalty of 15 years in prison and a $250,000 fine, and Fabio Froes faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case was prosecuted by Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section, and Assistant U.S. Attorney Marton Gyires of the Southern District of Florida.
The investigation was conducted by ICE Homeland Security Investigations in Miami.
Brazilian Husband and Wife Plead Guilty in Florida to Human SmugglingRead the Press Release
Two Brazilian nationals pleaded guilty today in Miami to smuggling undocumented migrants to the United States for profit, announced U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Immigration and Customs Enforcement (ICE) Director John Morton.
Juliana Rose Tome-Froes, 36, and her husband, Fabio Rodrigues Froes, 49, pleaded guilty before U.S. District Court Judge Federico A. Moreno in the Southern District of Florida to six counts and two counts, respectively, of bringing and attempting to bring aliens to the United States for commercial advantage and private financial gain.
According to plea documents, from at least October 2008 until approximately September 2010, the defendants organized, operated and managed a human smuggling network that spanned from Brazil to France, England, The Bahamas and the United States. The defendants met with undocumented migrants and negotiated forms of payment to be smuggled into the United States. Before the undocumented migrants departed Brazil, the defendants instructed them to act like tourists and explained that the itinerary through Europe would support a tourist cover story. In exchange for approximately $16,000, Tome-Froes, with assistance from Froes, arranged air transportation from Brazil to Paris, then London and Nassau, Bahamas. Tome-Froes arranged the undocumented migrants’ lodging in Paris and Nassau, and then instructed them to fly to Freeport, Bahamas, where they waited for a boat to transport them to the United States. For the final leg into the United States, Tome-Froes coordinated with various individuals in South Florida to pilot a small boat to Freeport, which picked up the undocumented migrants and transported them to the United States.
At sentencing, scheduled for March 21, 2013, Juliana Tome-Froes faces a maximum penalty of 15 years in prison and a $250,000 fine, and Fabio Froes faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case was prosecuted by Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section, and Assistant U.S. Attorney Marton Gyires of the Southern District of Florida.
The investigation was conducted by ICE Homeland Security Investigations in Miami.
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.
Bend Couple Charged with $4.4 Million Investment Scheme Pleads GuiltyRead the Press Release
Eugene, Ore. - Late Tuesday, January 15, 2013, Tamara Sawyer, 49, and Kevin Sawyer, 60, of Bend, Oregon, pled guilty. Mr. Sawyer pled guilty to Count 14 of a 21-count indictment for making false statements to a financial institution. Ms. Sawyer pled guilty to all 21 counts including conspiracy to commit wire fraud, wire fraud, bank fraud, making a false statement to a financial institution, money laundering. They agreed to forfeiture of certain assets and to pay full restitution to the victims of the fraud scheme.
Defendant Kevin Sawyer, a former Bend Police Captain, admitted to lying to a bank to obtain a mortgage. He intentionally misrepresented assets, liabilities, and the source of the down payment. Defendant Tamara Sawyer, a former licensed real estate broker in Bend, Oregon, admitted to lying to investors to obtain their money. She enticed investors by falsely promising high rates of return, typically 12 percent, and secured the investments with promissory notes. Rather than investing the money as promised, she used it to fund their other companies and ventures and to pay personal expenses, including cars, credit cards, and the construction of their vacation home in Mexico. Additionally, as the scheme progressed and investors began to demand a return on their investment, she used new investor money to pay older investors. Defendant Tamara Sawyer caused investors to lose more than $4.4 million.
Sentencing is set for April 30, 2013, at 9:00 a.m. before Chief U.S. District Court Judge Ann Aiken at the federal courthouse in Eugene, Oregon.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation Division and is being prosecuted by Assistant U.S. Attorneys Scott E. Bradford and Amy E. Potter.
Belview Woman Sentenced for Embezzling from Minnwest BankRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 48-year-old woman from the southwestern Minnesota community of Belview was sentenced for stealing hundreds of thousands of dollars from the customers of Minnwest Bank, in Marshall, Minnesota, where she worked. United States District Court Judge John R. Tunheim sentenced Barbara Kaye Rechtzigel to 24 months in federal prison on one count of embezzlement by a bank officer. The judge also ordered her to pay $1,013,018.27 in restitution to the bank. Rechtzigel was charged on July 23, 2012, and pleaded guilty on August 6, 2012.
In her plea agreement, Rechtzigel admitted that from 1998 through June of 2012, she embezzled the money for her personal use, primarily to pay off shopping debts. When she was terminated from employment on June 4, 2012, Rechtzigel was the senior operations manager at the bank’s Marshall location.
To carry out her embezzlement scheme, Rechtzigel created false paperwork to make bank customers believe their CDs were being renewed and earning interest, when, in fact, she was stealing and spending the money. The bank ultimately repaid the customers victimized by the scheme. In total, the bank paid out more than $1 million.This case was the result of an investigation by the Federal Bureau of Investigation and the Marshall Police Department, with assistance from the Federal Deposit Insurance Corporation—Office of Inspector General. It was prosecuted by Assistant U.S. Attorney William J. Otteson.
Bank Vice-President and Senior Business Director Pleads Guilty to Wire Fraud SchemeRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces today that Susan Emily Jones (50, Lutz) pleaded guilty to wire fraud. Jones faces a maximum penalty of 20 years in federal prison. As part of her plea agreement, Jones has agreed to a money judgment of $824,301.57, representing the proceeds of her criminal conduct.
According to the plea agreement, Jones served as Vice-President and Senior Business Director of Citicorp Services, Inc. and managed its employees and operations during the relevant time period. From November 13, 2003, through January 5, 2010, in Tampa, Jones falsely and fraudulently led Citicorp Services, Inc. employees to believe that she was authorized to make certain expenditures of Citicorp Services, Inc. funds. She misappropriated the funds for her personal enrichment, including paying for season tickets to the Tampa Bay Buccaneers, personal credit card and auto-related expenses, charitable contributions, prepaid debit cards, travel, and other personal expenses. In addition, Jones caused the unauthorized transfer of funds from the Citibank, N.A. reserve account to the Citicorp Services, Inc. account. In sum, she caused the transmission of wires in interstate commerce and bypassed Citicorp Services, Inc.’s and Citibank, N.A.’s internal controls for business and travel and entertainment expenses. In so doing, she misappropriated $824,301.57.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Rachelle DesVaux Bedke.
Another Guilty Plea in Aryan Knights CaseRead the Press Release
BOISE – Dallas Tyler Thompson, 31, of Boise, pleaded guilty today in United States District Court to unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Thompson admitted that on June 19, 2012, he was in possession of a Glock 9 millimeter handgun. Thompson was prohibited from possessing the handgun because he was previously convicted of the felony crime of aggravated battery in 2001. Thompson’s case is part of a larger, ongoing investigation involving the Aryan Knights gang, in which twenty-two people were charged with drug trafficking and firearms violations. Thompson is the twelfth person to plead guilty.
Unlawful possession of a firearm is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Thompson is set for sentencing on April 8, 2013, before Chief U.S. District Judge B. Lynn Winmill, at the federal courthouse in Boise.
The cases were the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), which included the cooperative law enforcement efforts of the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, U.S. Marshals Service, and the Treasure Valley Metro Violent Crime Task Force, a task force comprised of federal, state and local agencies, including the Boise Police Department, Ada County Sheriff’s Office, Caldwell Police Department, Nampa Police Department, Meridian Police Department, and Canyon County Sheriff’s Office; the Twin Falls Police Department, Twin Falls Sheriff’s Office, Idaho State Police, and District 3 Probation and Parole.
The cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Allen Man Charged with LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that an Allen, South Dakota, man has been indicted by a federal grand jury for allegedly stealing money order checks, which had a value of over $1,000, from a woman at Pine Ridge in March 2012.
Clarence W. Yellow Hawk, Sr., age 44, was indicted by a federal grand jury on December 18, 2012, for Larceny. Yellow Hawk appeared before United States Magistrate Judge Veronica L. Duffy on January 10, 2013, and pled not guilty to the indictment. The maximum penalty upon conviction is 5 years of imprisonment and a $250,000 fine. The charge is merely an accusation, and Yellow Hawk is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant United States Attorney Wayne Venhuizen is prosecuting the case. Yellow Hawk was released on bond pending trial. A trial date has been set for March 19, 2013.
32 Individuals Charged in Manhattan Federal Court in Connection with Alleged Organized Crime Scheme to Control the Commercial Waste Disposal IndustryRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George C. Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and George N. Longworth, the Commissioner of the Westchester County Police Department today announced the unsealing of charges against 32 individuals as part of a multi-year investigation into organized crime’s alleged continuing control of large aspects of the commercial waste-hauling industry in the greater New York City metropolitan area and in parts of New Jersey. The main Indictment charges 12 defendants under the Racketeer Influenced and Corrupt Organizations Act (“RICO”) for conspiring to participate in a racketeering enterprise that asserted illegal and extortionate control over commercial waste-hauling companies, and 17 other defendants with individual acts of extortion, loansharking, and other crimes associated with those activities. The charges are contained in three Indictments, United States v. Franco, et al., United States v. Giustra, et al., and United States v. Lopez.
Thirty of the defendants were arrested this morning in connection with today’s charges, and will be presented and arraigned in Manhattan federal court before U.S. Magistrate Judge Kevin N. Fox later this afternoon. Two defendants, DOMINICK PIETRANICO and PASQUALE P. CARTALEMI, are expected to surrender this week.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, organized crime still wraps its tentacles around industries it has fed off for decades, but law enforcement continues to pry loose its grip. Here, as described in the indictments, organized crime insinuated itself into the waste disposal industry throughout a vast swath of counties in New York and New Jersey, and the tactics they used to exert and maintain their control come right out of the mafia playbook – extortion, intimidation, and threats of violence. And while these accused mobsters may have hidden themselves behind seemingly legitimate owners of waste disposal businesses, law enforcement was able to pierce that veil through its painstaking, multi-year investigation. Organized crime has many victims – in this case small business owners who pay for waste removal, potential competitors, and the communities infected by this corruption and its cost. Organized crime is in a losing battle and we and our law enforcement partners remain committed to its extinction.”
FBI Assistant Director-in-Charge George C. Venizelos said: “The indictments show the ongoing threat posed by mob families and their criminal associates. In addition to the violence that often accompanies their schemes, the economic impact amounts to a mob tax on goods and services. The arrests – the culmination of a long and thorough investigation – also show the ongoing determination of the FBI to diminishing the influence of La Cosa Nostra.”
Westchester County Police Department Commissioner George N. Longworth said: “The long-term partnership between the Westchester County Police and federal law enforcement is an important means of combating organized crime and ensuring that businesses in Westchester are free to operate without fear of extortion or undue influence.”
The following allegations are based on the Indictments unsealed today and statements made in Manhattan federal court:
Twelve of the defendants, who are members and associates of three different Organized Crime Families of La Cosa Nostra (“LCN”) – the Genovese, Gambino and Luchese Crime Families – are charged with participating in a RICO enterprise in which they worked together to control various waste disposal businesses in the New York City metropolitan area and multiple counties in New Jersey (the “Waste Disposal Enterprise,” or “Enterprise”). The Waste Disposal Enterprise was a criminal organization the members of which engaged in crimes including extortion, loansharking, mail and wire fraud, and stolen property offenses. CARMINE FRANCO, ANTHONY PUCCIARELLO, HOWARD ROSS, ANTHONY CARDINALLE, PETER LECONTE, FRANK OLIVER, CHARLES GIUSTRA, DOMINICK PIETRANICO, JOSEPH SARCINELLA, WILLIAM CALI, SCOTT FAPPIANO, and ANTHONY BAZZINI (“Enterprise members”) were leaders and members of the Waste Disposal Enterprise who committed crimes as part of the racketeering conspiracy in order to accomplish the Enterprise’s goals of enhancing its power, financially enriching its members, and keeping its victims - including small business owners and potential competitors – in check by threatening economic and physical harm.
Waste Disposal Enterprise members avoided any official connection to the waste disposal businesses they controlled because they were either officially banned from the waste hauling industry, or unlikely to be granted the necessary licenses required to do business in the waste hauling industry because of their affiliations with organized crime. Accordingly, Enterprise members concealed themselves behind waste disposal businesses that were officially owned and operated by non-Enterprise members (“Controlled Owners”), who were able to obtain the necessary licenses because they had no known affiliations with organized crime. Ultimately, Enterprise members exerted control over these waste disposal businesses by, among other things, dictating which trash pick-up stops that a particular hauling company could use and extorting payments in exchange for protection by individuals associated with organized crime. By asserting and enforcing purported “property rights” over the trash pick-up routes, the Enterprise members excluded any competitor that might offer lower prices or better service, in effect imposing a criminal tax on businesses and communities. Separately, some of the Controlled Owners were also committing crimes, including stealing property of competing waste disposal businesses and defrauding businesses of their customers.
The operation of the Waste Disposal Enterprise was coordinated by and among factions of the LCN families through the use of “sit-downs” to determine which faction would control a particular waste disposal company and established the financial terms upon which control of that company could be transferred from one faction to another in return for payment.
During the time period alleged in the Indictment, Enterprise members extorted a Controlled Owner, who, unknown to them, was a cooperating witness (the “CW”). The CW incorporated a waste removal company (the “CW Company”) that ultimately was controlled by a number of different factions of the Waste Disposal Enterprise.
At various times, the CW Company was under the control of CARMINE FRANCO, a Genovese Crime Family associate who was banned by New Jersey authorities from maintaining any involvement in the waste hauling business in that state due to prior criminal convictions. A Genovese Crime Family crew based principally in Lodi, New Jersey (“Lodi Crew”), which included Genovese Family soldiers ANTHONY PUCCIARELLO and PETER LECONTE, as well as Genovese Family associates ANTHONY CARDINALLE, HOWARD ROSS, and FRANK OLIVER, subsequently wrested control of the CW’s waste company from FRANCO, and further extorted the CW for weekly payments for “protection” from other LCN factions. In addition, at various times, a different faction of the Genovese Crime Family – led by Genovese soldiers DOMINICK “PEPE” PIETRANICO and JOSEPH SARCINELLA – and a Gambino Crime Family crew – including Gambino Family soldier ANTHONY BAZZINI and associate SCOTT FAPPIANO – controlled the CW’s waste hauling company.
In addition to the 12 defendants charged as members of the Waste Disposal Enterprise, 17 of the defendants are charged with carrying out various illegal activities in relation to the waste hauling industry. These illegal activities include: extortion, mail and wire fraud conspiracy, and interstate transportation of stolen property.
Charts identifying each defendant, the charges, and the maximum penalties, as well as the defendants’ ages and residency information are attached to this release. U.S. District Judges P. Kevin Castel, Colleen McMahon, and Laura Taylor Swain have been assigned to this case.
U.S. Attorney Preet Bharara thanked the FBI and the Westchester County Police Department for their work in the four-year investigation, which he noted is ongoing. Mr. Bharara also thanked the New York City Business Integrity Commission, the New York State Police, and the Town of Orangetown Police Department for providing invaluable assistance with the investigation.
The case is being prosecuted by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Arianna R. Berg, Natalie Lamarque and Brian R. Blais are in charge of the prosecution. Assistant U.S. Attorney Martin S. Bell of the Office’s Asset Forfeiture Unit is responsible for the forfeiture of assets.
The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Click here to view chart(s)
U.S. v. Carmine Franco, et al. Indictment
U.S. v. Charles Giustra, et al. Indictment
U.S. v. Kenneth Lopez Indictment
15 January 2013
Youngstown Man Charged with Bank RobberyRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a one-count information was filed charging Richard D. Gooding, age 38, of Youngstown, Ohio, with bank robbery.
On November 13, 2012, Gooding entered the Bangor Savings Bank, 1048 Brighton Avenue, Portland, Maine, and robbed a teller of approximately $1,543. He was subsequently arrested in Youngstown, Ohio.
If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation was conducted by the Portland, Maine Police Department, the Federal Bureau of Investigation and the Mahoning Valley Violent Crimes Task Force. The case is being prosecuted by Assistant United States Attorney David M. Toepfer.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Woman Sentenced in Bank RobberyRead the Press Release
US Attorney Brendan V. Johnson announced that a Sioux City woman charged with bank robbery was sentenced on January 14, 2013, by US District Judge Karen E. Schreier. Michelle Marie Bock, age 39, was sentenced to 36 months in custody to be followed by 2 years of supervised release. She was also ordered to make restitution to the bank in the amount of $808.
Bock robbed the First Premier Bank, located at 3401 South Kiwanis Avenue, in Sioux Falls on July 17, 2012. At that time she presented a note reading “This is a robbery” to a teller, and was given money. Bock had taped fake dynamite to her torso and wore the “bomb” into the bank.
Bock concocted a story to law enforcement that she had been kidnapped in Sioux City and forced to rob the bank. She said two men had taped the bomb to her torso and said they told her they would blow it up if she failed to do as instructed.
This case was investigated by the Sioux Falls Police Department and the Federal Bureau of Investigation. Assistant US Attorney John E. Haak prosecuted the case.
Bock was immediately turned over to the custody of the US Marshal.
Wanblee Woman Sentenced for Causing Death of Her Infant SonRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wanblee woman convicted of Felony Child Abuse & Neglect was sentenced on January 3, 2014, by Chief U.S. District Judge Jeffrey L. Viken. Kehuanna Poitra, age 31, was sentenced to 120 months' custody and 3 years' supervised release, and ordered to pay $100 to the Victim Assistance Fund.
Between July and August, 2011, at Wanblee, Poitra failed to properly care for her infant son and did not seek necessary medical attention, causing his death. The infant was sent home from Rapid City Regional Hospital in the care of Poitra who was given strict instructions for his care including monitoring or an apnea/Bradycardia machine, medication, and specialized formula. She failed to provide this care for him, resulting in his extreme malnourishment, dehydration, and ultimately pneumonia, which caused his death. Poitra pled guilty on October 3, 2013.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Poitra was immediately turned over to the custody of the U.S. Marshal.
Vermont Man Sentenced to Three Years in Federal Prison for Illegal Firearms DealingRead the Press Release
January 15, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that KYLE FARACE, 26, of Brattleboro, Vt., was sentenced today by Chief United States District Judge Alvin W. Thompson in Hartford to 36 months of imprisonment for dealing firearms without a license. FARACE also was ordered to serve three years of supervised release and perform 150 hours of community service after his release from prison.
According to court documents and statements made in court, on at least three separate occasions between April and June 2011, FARACE, who is not a licensed firearms dealer, transferred five firearms to someone he believed to be a convicted felon and who resided in a different state.
It is a violation of federal law for a person to engage in the business of dealing in firearms without a license, to sell firearms to a convicted felon, or to transfer a firearm to a person residing in a different state.
On January 6, 2012, FARACE pleaded guilty to one count of dealing in firearms without a license. When he pleaded guilty, FARACE also admitted that he illegally possessed and distributed marijuana in April and May 2011.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Hartford Police Department, the East Hartford Police Department and the Connecticut Department of Revenue Services. The ATF and DEA in Burlington, Vt., the Addison County (Vt.) Sheriff’s Department, and the United States Attorney’s Office for the District of Vermont assisted the investigation of this matter.
The case was prosecuted by Assistant United States Attorneys Jonathan S. Freimann and Ndidi Moses.
PUBLIC AFFAIRS CONTACT:
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(203) 821-3722 [email protected]Two Guatemalan Nationals Sentenced to A Combined 67 Years in Prison for Roles in Hostage TakingRead the Press Release
PHOENIX, Ariz. – On Jan. 14, 2013, Domingo Agustin-Simon, 31, and Leonardo Rabanales-Casia, 30, both of Guatemala, were sentenced by U.S. District Judge David G. Campbell for their roles in a Mesa-based hostage taking. Agustin-Simon was sentenced to 35 years in prison for the hostage taking and conspiracy to commit hostage taking. He was sentenced to an additional consecutive term of seven years for brandishing a shotgun in connection with the hostage taking. Rabanales-Casia was sentenced to 25 years in prison for the hostage taking and conspiracy to commit hostage taking. Both men had previously been found guilty of those charges by a federal jury.
U.S. Attorney John S. Leonardo stated that, "These lengthy sentences serve to not only punish and deter such cruel and inhumane activity but also to protect the public from dangerous individuals that prey upon the vulnerabilities of their victims."
“This case illustrates the ruthlessness and brutality of the human smuggling trade,” said Matt Allen, special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Arizona. “These smugglers treated the people in the drop house as a mere business commodity, with no qualms about jeopardizing human life in order to extort personal profit. Investigating these cases is a top priority for HSI, and we will continue to work with our law enforcement partners to bring those who would choose to exploit people in this despicable way to justice. ”
Evidence at trial was that defendants were part of an alien smuggling operation responsible for crossing illegal aliens into the United States and harboring them at a drop house in Mesa. On Aug. 10, 2011, an IIMPACT task force comprised of law enforcement from U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations, Arizona Department of Public Safety and Phoenix Police Department raided the drop house and found more than 40 illegal aliens inside. Testimony at trial revealed that the smugglers threatened the aliens with physical harm and death and told family members that the aliens would be harmed or killed if payments were not made. One hostage was beaten by the smugglers, the women were subject to sexual molestation and the evidence presented showed that one of the women was raped by Agustin-Simon. The smugglers used a shotgun to keep order in the drop house.
The following four co-defendants previously pleaded guilty in connection with their roles at the drop house and were sentenced to prison terms ranging from 24 months to 8 years: Sergio Rivera-Jimenez, 34; Jose Luis Garcia-Ortega, 22; Santos Bautista-Juan, 34; and Walmar Rocael Morales-Tomas, 19.
The investigation in this case was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations. The prosecution was handled by Christine D. Keller and Sean K. Lokey, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-11-01622-PHX-DGC
RELEASE NUMBER: 2013-002_ Agustin-Simon_etalFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Two Chicago Area Men Sentenced on Federal Racketeering Conspiracy ChargesRead the Press Release
St. Louis, MO - Two Chicago area residents have been sentenced within the past week to federal prison for Racketeering Conspiracy charges in United States District Court in St. Louis.
ANTHONY OWENS, a/k/a“Pharaoh,”of Chicago, IL, was sentenced to 102 months in prison today, after previously pleading guilty to being an accessory after-the-fact to murder and tampering with evidence. TREVOR SEYMOUR, a/k/a “Cyclopse,” of Chicago, IL, was sentenced last week to 120 months in prison for conspiring with other members of the Wheels of Soul to commit a murder in 2009, and kidnapping a member of another motorcycle gang in January 2010. They appeared for sentencing before Chief United States District Judge Catherine D. Perry.
This case was investigated by the Federal Bureau of Investigation in St. Louis, the Bureau of Alcohol, Tobacco, Firearms, and Explosives in Chicago and the Chicago Police Department.
Trinity County Man Sentenced for Failing to Register as A Sex OffenderRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 57-year-old Trinity, Texas man has been sentenced to federal prison for failing to register as a sex offender in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Clarence Robert Ward pleaded guilty on June 12, 2012, to failure to register as a sex offender and was sentenced to 24 months in federal prison today by U.S. District Judge Thad Heartfield.According to information presented in court, Ward was convicted on indecency with a minor in Polk County, Iowa in 1998. As a result of this conviction, Ward is required to register under the Sex Offender Registration and Notification Act. In March 2010, Ward moved to Huntsville, Texas and then in 2011, he moved from Huntsville to Trinity, Texas. Ward failed to update his sex offender registration with the State of Iowa or to initiate registration with the State of Texas.
This case was investigated by ICE/HSI and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Tarentum Drug Dealer Pleads Guilty to Gun and Drug ChargesRead the Press Release
PITTSBURGH -A resident of Tarentum, Pa., has pleaded guilty in federal court to charges of federal drug and firearms offenses, United States Attorney David J. Hickton announced today.
Curtis Veasley, 33, pleaded guilty on Jan. 14, 2013, to four counts before United States District Judge Terrence F. McVerry.
In connection with the guilty plea, the court was advised that the defendant stored and sold both crack cocaine and heroin from his Tarentum residence. When police searched the home they found drugs, guns, ammunition, a bullet-proof vest and $7,540 in cash. As a felon, the defendant is precluded from possessing a firearm or ammunition under federal law.
Judge McVerry scheduled sentencing for May 17, 2013, at 9:30 a.m. The law provides for a total sentence of up to 70 years in prison, a fine of $3,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history of the defendant.
The court remanded Veasley back to jail to await sentencing.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tarentum Police Department conducted the investigation that led to the prosecution of Curtis Veasley.
Tammy Lynn Lapie Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on January 15, 2013, before U.S. District Judge Sam E. Haddon, TAMMY LYNN LAPIE, a 47-year-old resident of Great Falls, pled guilty to possession with the intent to distribute methamphetamine. Sentencing has been set for April 22, 2013. She is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica A. Betley, the government stated it would have proved at trial the following:
During January 2012, law enforcement originally became alerted to a methamphetamine distribution ring from Washington state to Great Falls.
In June 2012, law enforcement learned of an individual, X.X., who made repeated trips from Great Falls to Washington to obtain methamphetamine to re-sell in Great Falls.
On June 29, 2012, a CI (confidential informant) informed the drug task force that X.X. was returning to Great Falls from Washington with methamphetamine. The task force arranged for a controlled drug buy from X.X. near the University of Great Falls. The CI purchased methamphetamine. The CI then continued to make numerous controlled drug buys from X.X. over the next few days.
Law enforcement located X.X.'s car in early July 2012, and the task force tracked this car from Great Falls to Spokane, Washington. The car stayed in Spokane for less than two hours before returning to Great Falls. Law enforcement initiated a traffic stop of the car just outside of Great Falls and they obtained two ounces of methamphetamine. X.X., the driver of the car, told law enforcement he had traveled to Spokane to buy methamphetamine from "Bert." He had been supplied by Bert, who was identified as Robert Boucher, since February or March 2012. In total, X.X. believed he had obtained and distributed approximately ten ounces of methamphetamine that he received from Boucher.
X.X. told law enforcement that Boucher provided him with a GPS system in order for X.X. to find Boucher's house in Spokane. Once X.X. obtained the methamphetamine from Boucher, X.X. would sell the methamphetamine by the gram for $100 around Great Falls. Boucher sold the methamphetamine to X.X. for $1,400 an ounce.
X.X. and Boucher also dealt methamphetamine with LAPIE and another individual, Z.Z., in Great Falls. The methamphetamine dealing continued into the fall of 2012. During the end of October 2012, detectives interviewed additional witnesses. One witness stated that LAPIE was heavily involved in using and dealing methamphetamine. LAPIE obtained her methamphetamine from Boucher, and Boucher delivered methamphetamine to LAPIE approximately once a week.
The witness further provided that Boucher stored the methamphetamine in the hood and trunk of his car. He then divided the methamphetamine between the sellers who obtained the methamphetamine on credit. Boucher stayed in town at LAPIE's house until the money was collected. LAPIE would then repackage the methamphetamine into eight-ball baggies and distribute it to other sellers.
On November 13, 2012, a witness contacted the drug task force and stated Z.Z. was selling methamphetamine. Law enforcement then arranged controlled drug purchases from Z.Z. in Great Falls. The following evening, detectives saw Z.Z. drive to LAPIE's house, where he stayed for a half hour before again returning to his motel room. A little while later, Z.Z. and a woman drove to a gas station. Z.Z. conducted a drug deal in the parking lot. Officers conducted a traffic stop on Z.Z.'s car shortly thereafter.
After ordering Z.Z. out of the car, officers found a glass container of methamphetamine in Z.Z.'s pocket. He spoke with law enforcement and said he had been dealing methamphetamine with LAPIE. Z.Z. regularly purchased two eight balls of methamphetamine per week from LAPIE. Z.Z. also identified Boucher as one of LAPIE's suppliers and said he delivered methamphetamine to LAPIE once per week.
LAPIE faces possible penalties of a mandatory minimum of 5 years and could be sentenced to 40 years, a $5,000,000 fine, and 4 years supervised release.
The investigation was conducted by the Russell County Drug Task Force.
Sally
St. Francis Woman Charged with Making False Statement to Federal Agency and Concealing Person from ArrestRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis woman has been indicted by a federal grand jury for Making False Statement to a Federal Agency and Concealing Person From Arrest. Candice Waln, age 34, was indicted by a federal grand jury on December 11, 2012. She appeared before United States Magistrate Judge Mark A. Moreno on January 14, 2013, and pled not guilty to the indictment. The maximum penalty upon conviction is 5 years in custody, a $250,000 fine, or both.
The charges are merely accusations, and Waln is presumed innocent until and unless proven guilty.
The investigation is being conducted by the United States Marshal's Service. Assistant United States Attorney Tim Maher is prosecuting the case.
Waln was released on bond pending trial. A trial date has not been set.
Sioux Falls Man Pleads Guilty to Drug OffenseRead the Press Release
US Attorney Brendan V. Johnson announced that Darrel Ray Hollingsworth, age 46, of Sioux Falls appeared before U.S. District Judge Karen E. Schreier on January 14, 2013, and pled guilty to an indictment that charged him with conspiracy to distribute 50 grams or more of a mixture containing methamphetamine. The offense carries a mandatory minimum penalty of 5 years and a maximum penalty of 40 years in prison, and/or a $5 million fine.
Between August 2011 and January 2012, Hollingsworth and a co-conspirator traveled to Arizona on at least three occasions to obtain methamphetamine to sell in South Dakota. Hollingsworth provided funds to finance the trips and to purchase the drugs. Others distributed the methamphetamine, collected payments, and returned the payments to Hollingsworth.
The investigation was conducted by the U.S. Drug Enforcement Administration, and the case is being prosecuted by Assistant US Attorney John E. Haak.
A presentence investigation was ordered, and a sentencing date was set for April 8, 2013. The defendant was remanded to the custody of the US Marshal pending sentencing.
San Fernando Valley Doctor Pleads Guilty in Multi-Million Dollar Medicare Fraud Case Involving Treatments Never PerformedRead the Press Release
LOS ANGELES – A medical doctor who owns a clinic in the Winnetka district of the San Fernando Valley pleaded guilty today to federal fraud charges for bilking Medicare out of more than $3 million by submitting bills for procedures never performed, sometimes involving patients he never met.
Pezhman Ebrahimzadeh, who uses the name “Pez Abrahams,” 50, of Calabasas, pleaded guilty today to one count of health care fraud before United States District Judge George H. Wu.
Ebrahimzadeh owns the Winnetka Medical Group, a cosmetic health care clinic that operates under the name Health & Beauty Clinic. At his clinic, Ebrahimzadeh provides cosmetic treatments that involve radiofrequency lasers and liposuction. As some of his patients were Medicare beneficiaries, Ebrahimzadeh obtained their beneficiary information, which was used to bill Medicare for procedures he did not perform. Ebrahimzadeh also obtained beneficiary information for patients he never treated, and he used that information to submit other fraudulent bills to Medicare.
In relation to the bogus bills submitted to Medicare, Ebrahimzadeh typically claimed he had performed three expensive procedures: revascularization, ablation of a bone tumor, or the placement of a radiotherapy catheter in a breast. Ebrahimzadeh made these claims, even though he lacked the equipment needed to perform revascularizations or the placement of radiotherapy catheters. On at least one occasion, Ebrahimzadeh admitted in court today, he billed Medicare for performing these procedures, even though the purported patient was dead.
Between September 2008 and April 2012, Ebrahimzadeh submitted $7.5 million in bogus claims, and Medicare paid just over $3 million.
Judge Wu is scheduled to sentence Ebrahimzadeh on May 20. At sentencing, Ebrahimzadeh faces a statutory maximum penalty of 10 years in federal prison. The plea agreement contemplates a sentence of approximately four to five years, but Judge Wu will make the final determination as to the actual sentence that will be imposed in this case. In the plea agreement, Ebrahimzadeh agreed to repay the millions of dollars he stole from Medicare.
The case against Ebrahimzadeh was investigated by the U.S. Department of Health and Human Services, Office of Inspector General; the Federal Bureau of Investigation; and the California Department of Justice, Bureau of Medi-Cal Fraud & Elder Abuse.
Release No. 13-009
Rochester Man Charged with Attempting to Extort a Rochester BusinessmanRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that John L. Lyons, of Caledonia, N.Y., was charged by criminal complaint with intending to extort money by threatening to injure the reputation of another. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that according to the complaint, between November 30, 2012 to December 20, 2012, the defendant posed as a private investigator in text messages to the president of a local company in Rochester who was involved in a contentious battle over control and operations of the family owned business. Specifically, Lyons, using his text messaging, stated to the victim that he had obtained incriminating information about the victim. The complaint further stated that if the victim paid the defendant $25,000 in cash, he would give the incriminating information to the victim, rather than turn over the information to the entities that hired Lyons to gather the information about victim.
The complaint is the culmination of an investigation on the part of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Christopher M. Piehota. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Rapid City Woman Sentenced for Assaulting InfantRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City woman convicted of Simple Assault was sentenced on January 3, 2013, by U.S. Magistrate Judge Veronica L. Duffy. Shalaine Bear Runner, age 26, was sentenced to 3 years of probation and ordered to pay $25 to the Victim Assistance Fund.
In June 2012 at Pine Ridge, Bear Runner and another person assaulted a seven-month old infant, causing bruising and bleeding. She pled guilty on October 9, 2012.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety . Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Project Safe Neighborhoods Grant Announcement - Violent Gang & Gun Crime Reduction ProgramRead the Press Release
Deadline for grant proposals is March 11, 2013
United States Attorney Stephanie A. Finley announced today that the Department of Justice (DOJ), the Office of Justice Programs (OJP), and the Bureau of Justice Assistance (BJA) is seeking applications for funding of grants under the Violent Gang and Gun Crime Reduction Program, also known as Project Safe Neighborhoods. This program furthers the Department of Justice’s mission and violent crime reduction strategy by providing support to state, local and tribal efforts to reduce gun and gang-related violent crime. Contingent on the availability of funds, grant awards totaling $300,000 are possible in the Western District of Louisiana to fund new and current comprehensive gun crime reduction strategies and gang violence reduction strategies. The deadline to apply is March 11, 2013.
The 2013 Competitive Grant Announcement can be found at http://www.bja.gov/Funding/13PSNsol.pdf.
Various types of single or multi-grantee grant applications are welcome including those that address the following:
- Gang violence and gun violence reduction, deterrence, prevention, community outreach, and education;
- Enforcement, adjudication, and supervision programs;
- Prisoner Reentry Programs; or
- Other innovative related projects.
To apply, applicants must first register at www.Grants.gov. Once registered, applicants must submit applications through www.Grants.gov. Complete instructions on how to register and submit an application is at www.Grants.gov. The deadline to apply is March 11, 2013.
Applicants can contact the www.Grants.gov Customer Support Hotline for technical assistance with submitting an application at 800-518-4726 or 606-545-5035 or by e-mail to [email protected]. Applicants may also contact Robert W. Gillespie, Jr., Assistant U. S. Attorney and PSN and Anti-Gang Coordinator for the Western District of Louisiana, at (318) 676-3600 for additional information.
For more information regarding the Project Safe Neighborhoods Program, please visit the Western District of Louisiana U.S. Attorney's Office website at: http://www.usdoj.gov/usao/law/programs/projectsafe.html as well as www.psn.gov and http://www.ojp.usdoj.gov/BJA/grant/psn.html.
Postal Worker Charged with Mail TheftRead the Press Release
BOSTON - A Taunton man was charged today in federal court with stealing mail.
Michael Gilman, 27, was charged with theft of mail. The indictment alleges that Gilman, an employee of the United States Postal Service in Brockton, stole letters while in his official capacity.
If convicted, Gilman faces up to five years in prison to be followed by three years of supervised release and up to a $250,000 fine.
United States Attorney Carmen M. Ortiz and Rafael Medina, Special Agent in Charge, U.S. Postal Service, Office of Inspector General, Northeast Area Field Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption and Special Prosecutions Unit.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Porcupine Man Indicted for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Porcupine man has been indicted by a federal grand jury for allegedly assaulting another man at Porcupine on August 17, 2011.
Tony Little Boy, age 22, was indicted by a federal grand jury on December 18, 2012, for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury. Little Boy appeared before United States Magistrate Judge Veronica L. Duffy on January 9, 2013, and pled not guilty to the indictment.
The maximum penalty upon conviction is 10 years in custody and a $250,000 fine on each count. The charges are merely accusations, and Little Boy is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant United States Attorney Wayne Venhuizen is prosecuting the case. Little Boy was released on bond pending trial. A trial date has been set for March 19, 2013.
Podiatrist Sentenced to 55 Months in Prison in Connection with $1.6 Million Medical Billing Fraud SchemeRead the Press Release
FLINT, Michigan – A Fenton podiatrist was sentenced in Bay City yesterday to 55 months in prison for his participation in a $1.6 million fraudulent medical billing scheme.
The sentencing was announced by United States Attorney Barbara L. McQuade, Special Agent in Charge Robert D. Foley, III of the FBI’s Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the HHS Office of Inspector General’s (OIG) Chicago Regional Office.
Richard Alan Behnan, D.P.M., 56, was sentenced by U.S. District Judge Thomas L. Ludington in Bay City, Michigan. In addition to his prison term, Behnan was ordered to pay $1,427,133.12 million in restitution to Medicare, and $196,956.54 to Blue Cross Blue Shield of Michigan, jointly and severally with his podiatric assistant and co-defendant, Kelly Morel.
Behnan pleaded guilty on November 21, 2011, to one count of conspiracy to commit health care fraud. According to the plea documents, beginning approximately in 2000 and continuing to at least December 2010, Behnan, a traveling podiatrist who operated across Michigan, including Bay City, Flint, Detroit and Lansing, provided services to patients at various senior centers and assisted living facilities. Behnan and Morel submitted claims to Medicare and Blue Cross Blue Shield of Michigan for nail avulsion procedures, when in fact they had merely trimmed and polished the patients’ toenails - a form of routine foot care not covered by Medicare. In some instances, Behnan submitted claims for nail avulsion procedures he claimed to have performed at a time when he was outside of the United States. In total, Behnan billed and received a total of $1,624,089.66 in fraudulent claims.Kelly Morel, who had pleaded guilty May 26, 2011, was sentenced yesterday to 18 months in prison.
U.S. Attorney McQuade stated, “"We hope that cases like this one will alert doctors and other health care providers that defrauding taxpayers through Medicare fraud is a serious crime that will land them in prison."
FBI Special Agent in Charge Foley stated, “"Those who commit health care fraud by illegally billing Medicare for services never performed are stealing money from all taxpayers. The FBI is vigorously committed to stopping these criminal acts."
The case was investigated by the FBI and HHS-OIG. and prosecuted by the U.S. Attorney’s Office for the Eastern District of Michigan.To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Pierre Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pierre man has been indicted by a federal grand jury for Failure to Register as a Sex Offender. Adrian Wells, age 36, was indicted by a federal grand jury on December 11, 2012. He appeared before United States Magistrate Judge Mark A. Moreno on January 14, 2013, and pled not guilty to the indictment. The maximum penalty upon conviction is 10 years in custody, a $250,000 fine, or both.
The charge is merely an accusation, and Wells is presumed innocent until and unless proven guilty.
The investigation is being conducted by the United States Marshal's Service. Assistant United States Attorney Marie H. Ruettgers is prosecuting the case.
Wells was remanded to the custody of the United States Marshal pending trial. A trial date has not been set.
Peruvian Woman and Bahamian Woman Plead Guilty in Florida to Alien SmugglingRead the Press Release
WASHINGTON – A Peruvian national and a Bahamian national pleaded guilty to smuggling undocumented migrants to the United States for private financial gain, Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and U.S. Immigration and Customs Enforcement (ICE) Director John Morton announced today.
Jessie Katherine Gonzales Urquizo, 37, a Peruvian national, and Irene Mildred Janette Burrows, 66, a Bahamian national, pleaded guilty on Jan. 11, 2013, before U.S. District Court Judge Kenneth A. Marra in the Southern District of Florida. Urquizo pleaded guilty to three counts and Burrows pleaded guilty to two counts, respectively, of bringing and attempting to bring aliens to the United States for commercial advantage and private financial gain.
According to plea documents, Urquizo and her mother-in-law, Burrows, facilitated the illegal smuggling of Brazilian nationals into the United States by working for a known alien smuggler in Brazil. Urquizo and Burrows provided lodging and transportation to undocumented migrants waiting on a boat to take them to the United States and charged between approximately $100 and $125 per day. According to court documents, Urquizo and Burrows received instructions from Brazil-based smugglers on when and where to deliver certain undocumented migrants to waiting boats for passage to the United States.
Urquizo and Burrows admitted that they brought undocumented migrants, all of whom are Brazilian nationals, to the United States for financial gain. Urquizo admitted to taking payment for lodging the undocumented migrants at various hotels and stash houses, including a nursing home operated by Burrows, her co-defendant and mother-in-law. Urquizo further admitted that she arranged for food to be taken to the undocumented migrants, transported the undocumented migrants to a waiting boat upon instructions from a known human smuggler in Brazil and demanded payment for her services. For her part, Burrows admitted to working with Urquizo, taking payment for lodging undocumented migrants at her nursing home and providing transportation.
At sentencing, scheduled for March 22, 2013, Urquizo faces a maximum penalty of 15 years in prison and a $250,000 fine, and Burrows faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case was prosecuted by Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section, and Assistant U.S. Attorney Alexandra Hui of the Southern District of Florida.Pennsylvania Man Pleads Guilty to Coercion and Enticement of a Minor and Possession of Child PornographyRead the Press Release
WASHINGTON – A Pennsylvania man pleaded guilty today for coercing and enticing a minor and possessing child pornography, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney for the Western District of Pennsylvania David J. Hickton and Special Agent in Charge John Kelleghan of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Philadelphia.
Jeffrey W. Herschell, 54, of Washington, Pa., pleaded guilty before U.S. District Judge David Stewart Cercone in the Western District of Pennsylvania. According to a statement of facts entered into the record by the government and agreed to by the defendant, Herschell sent money to the Philippines in February 2010 for a live, online sex show that included a 12-year-old minor female engaging in sexual activity. Herschell also admitted to possessing child pornography videos at his Pennsylvania residence.
At sentencing, Herschell faces a minimum sentence of 10 years in prison and a maximum sentence of life in prison on the coercion and enticement charge, and a maximum of 10 years in prison on the child pornography possession charge. Herschell also faces a term of supervised release of five years to life following his prison sentence, and will be required to register as a sex offender in any jurisdiction in which he lives, works or attends school. Sentencing has been scheduled for May 28, 2013. Judge Cercone deferred acceptance of the plea agreement until Herschell’s sentencing hearing.
This case was investigated by ICE-HSI Pittsburgh and the ICE-HSI Attache’s Office in the Philippines with significant assistance from the National Bureau of Investigation (Philippines) and the Philippine National Police. This case is being prosecuted by Assistant U.S. Attorney Jessica Lieber Smolar of the Western District of Pennsylvania and Trial Attorney Bonnie L. Kane of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.
Pennsylvania Man Pleads Guilty to Coercion and Enticement of A Minor and Possession of Child PornographyRead the Press Release
WASHINGTON – A Pennsylvania man pleaded guilty today for coercing and enticing a minor and possessing child pornography, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney for the Western District of Pennsylvania David J. Hickton, and Special Agent in Charge John Kelleghan of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Philadelphia.
Jeffrey W. Herschell, 54, of Washington, Pa., pleaded guilty before U.S. District Judge David Stewart Cercone in the Western District of Pennsylvania. According to a statement of facts entered into the record by the government and agreed to by the defendant, Herschell sent money to the Philippines in February 2010 for a live, online sex show that included a 12-year-old minor female engaging in sexual activity. Herschell also admitted to possessing child pornography videos at his Pennsylvania residence.
At sentencing, Herschell faces a minimum sentence of 10 years in prison and a maximum sentence of life in prison on the coercion and enticement charge, and a maximum of 10 years in prison on the child pornography possession charge. Herschell also faces a term of supervised release of five years to life following his prison sentence, and will be required to register as a sex offender in any jurisdiction in which he lives, works or attends school. Sentencing has been scheduled for May 28, 2013.
This case was investigated by ICE-HSI Pittsburgh and the ICE-HSI Attache’s Office in the Philippines with significant assistance from the National Bureau of Investigation (Philippines) and the Philippine National Police. This case is being prosecuted by Assistant U.S. Attorney Jessica Lieber Smolar of the Western District of Pennsylvania and Trial Attorney Bonnie L. Kane of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.justice.gov/psc.
Oregon-Based Research Consultant John Kinnucan Sentenced in Manhattan Federal Court to 51 Months in Prison for Insider Trading SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JOHN KINNUCAN, the President of Broadband Research, LLC, an investment research firm located in Portland, Oregon, was sentenced today to 51 months in prison for his participation in an insider trading scheme. KINNUCAN obtained material, non-public information (“Inside Information”) about publicly traded companies and sold that information to his clients, including hedge funds and money managers (the “BBR Clients”). KINNUCAN pled guilty in July 2012 to one count of conspiracy to commit securities fraud and two counts of securities fraud before U.S. District Judge Deborah A. Batts, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Today’s sentence of John Kinnucan is a fitting conclusion to a criminal odyssey that began with the buying and selling of inside information and evolved into a vile and very public campaign to threaten public servants and obstruct the federal investigation into Kinnucan’s conduct. Mr. Kinnucan will now pay for both crimes with his liberty.”
According to the Indictment, other court documents filed in the case, as well as statements made during the guilty plea and sentencing proceedings:
From 2008 through 2010, KINNUCAN obtained Inside Information about publicly traded companies, including quarterly revenue numbers, and sold that information to BBR Clients. The Inside Information came from co-conspirators who were employed at publicly traded companies (the “Public Company Sources”), such as F5 Networks, Inc. (“F5”), Sandisk Corporation and Flextronics International, Ltd.
In order to develop and maintain his network of Public Company Sources, KINNUCAN befriended public company employees and offered to provide some of them with consulting fees and other non-monetary consideration. Specifically, KINNUCAN paid one of his sources approximately $27,500 for Inside Information, and invested $25,000 in the business of another source.
After he obtained Inside Information from Public Company Sources, KINNUCAN provided it to BBR Clients with the understanding that they would use the information to execute securities transactions. For example, in June 2010 and early July 2010, KINNUCAN repeatedly sought information about F5’s quarterly financial results for the quarter ending on June 30, 2010 from an F5 employee. In a telephone call on the morning of July 2, 2010, KINNUCAN told the F5 employee that the guidance F5 previously provided to the investment community for the quarter that ended June 30, 2012 was $220 million. The F5 employee then informed KINNUCAN that the unadjusted revenue number was actually “$232 million,” confirming that F5 would beat Wall Street’s consensus estimates. Within minutes of the July 2, 2010 conversation with the F5 employee, KINNUCAN called numerous BBR Clients to provide them with the information. After receiving the F5 Inside Information from KINNUCAN, at least two BBR Clients executed securities transactions in F5 based, in whole or in part, on KINNUCAN’s Inside Information, earning profits and avoiding losses of more than $1.5 million.
In order to attract and retain BBR Clients, and in an effort to hide the true identity of his Public Company Sources, KINNUCAN lied to existing and prospective BBR Clients about the sources of his Inside Information, including by falsely stating that none of his sources was employed at public companies, and that he did not pay his sources.
In an effort to obstruct the ongoing federal criminal investigation, from December 2011 through February 2012, KINNUCAN made nearly 25 threatening telephone calls to prosecutors and agents responsible for the investigation of his unlawful activities. In these telephone calls, KINNUCAN made repeated references to genocide, sexual and other forms of violence, and threatened physical harm to one of the prosecutors handling this matter. He also made multiple telephone calls to one cooperating witness, and attempted to contact another in an effort to intimidate and harass them.
In addition to his prison term, KINNUCAN, 55, of Portland, Oregon, was sentenced to three years of supervised release and ordered to pay a $300 special assessment fee. As part of his plea agreement, KINNUNCAN will forfeit $164,000 to the United States.
During the sentencing proceeding, Judge Batts said, “[Kinnucan] lashed out in anger and made a spectacle of himself [by leaving] obscene, hateful, despicable and repetitive” voicemails for prosecutors, and that “…threatening personally government authorities who are doing their jobs by investigating insider trading cannot be tolerated.”
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation. He thanked the U.S. Securities and Exchange Commission for its assistance in this matter.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Katherine R. Goldstein, David B. Massey and Christopher L. LaVigne are in charge of the prosecution.
North Carolina Man Sentenced to Nearly 4 Years in Federal Prison for Illegal Firearm PossessionRead the Press Release
HUNTINGTON, W.Va. – U.S. Attorney Booth Goodwin today announced that a North Carolina man was sentenced to three years and one month in federal prison for illegal firearm possession. Jason Alexander Thompson, 28, of Charlotte, N.C., previously pleaded guilty in October 2012 to being a felon in possession of a firearm. On December 23, 2010, members of the Huntington Police Department were dispatched to the 1200 block of 28th Street in Huntington for a call reporting a prowler. When officers arrived at the scene, they observed the defendant in the area. Thompson admitted that at the time, he removed a .25 caliber pistol from his jacket pocket and threw it to the ground as officers approached.Thompson was prohibited from possessing firearms because of his August 2003 felony conviction in the United States District Court for the Southern District of West Virginia for possession with intent to distribute crack cocaine.
The Court noted that the defendant was on supervised release at time of the offense and therefore sentenced the defendant to an additional 10 months’ imprisonment for total of 47 months in prison.
This case is being brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.The Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by United States District Judge Robert C. Chambers.
Nigerian Man Pleads Guilty to Wire Fraud in Craigslist ScamRead the Press Release
Adebowale Ayodeji Owoaje, 31, of Nigeria, pleaded guilty today to wire fraud in a scheme to defraud individuals who were selling items and applying for jobs on Craigslist.com. Using various aliases while he was located overseas, Owoaje used e-mail to reach an agreement with the individuals on the sale price of items or terms of employment, including funds for a purported bonus or training materials.
From overseas, Owoaje sent counterfeit cashier’s checks to his co-conspirators here in the United States. Based on instructions from Owoaje, a co-conspirator typed amounts on counterfeit cashier’s checks that exceeded the sales price or bonus agreed to by Owaoje and the individuals. The co-conspirator then mailed the counterfeit cashier’s checks to the individuals.Owoaje informed individuals that a check in the wrong amount was sent to them by “mistake.” Owaoje then asked individuals to deposit that check in their bank account and to keep the amount Owoaje owed the individual plus an additional sum for their trouble. Owoaje instructed individuals to wire the balance of the money via Western Union to a co-conspirator, whom Owoaje falsely represented to individuals as his secretary or shipping agent. Only after wiring this money did individuals learn that the cashier’s checks they received were counterfeit.
U.S. District Court Judge Mary A. McLaughlin scheduled a sentencing hearing for April 15, 2013. Owoaje faces a maximum possible sentence of 80 years in prison, a three year period of supervised release, a fine of up to $1 million, and a $400 special assessment.The case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Vineet Gauri.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525