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15 January 2013
Caldwell County Man Charged with Defrauding Social Security Disability and Medicaid ProgramsRead the Press Release
– Received benefits for 20 years by alleging he was disabled
PADUCAH, Ky. – A federal grand jury meeting in Paducah, Kentucky today charged a Caldwell County, Kentucky resident with failure to report to Social Security Administration his ability to work and fraudulently received disability and Medicaid benefits for 20 years announced David J. Hale, United States Attorney for the Western District of Kentucky.
Travis L. Vickery, age 47, was charged in a two count federal indictment that alleges between September 1991 and October 2011, Vickery, who was not disabled from working, knowingly and willfully concealed and failed to disclose to the Social Security Administration that he was able to work and not disabled. The indictment further alleges that Vickery knowingly and willfully executed a scheme and artifice to defraud the Medicaid Program, by falsely representing he was disabled from working, and thereby received health care benefits, items, and services to which he was not entitled.
If convicted at trial, Vickery faces no more than 15 years in prison, a fine of $500,000 plus restitution, and a period of no more than three years of supervised release.
Vickery is scheduled for arraignment on the charges before U.S. Magistrate Judge Lanny King on January 17, 2013, in United States District Court located in Paducah, Kentucky.
This case is being prosecuted by Assistant United States Attorney James H. Barr and was investigated by the Social Security Administration’s Office of Inspector General.
Butler County Woman Pleads Guilty in Counterfeit Credit Card SchemeRead the Press Release
PITTSBURGH - A resident of Butler County pleaded guilty in federal court to a charge of conspiracy to use counterfeit credit cards, United States Attorney David J. Hickton announced today.
Janie M. Bey, 54, of Mars, Pa., pleaded guilty to one count before Senior United States District Judge Maurice B. Cohill.
In connection with the guilty plea, from June 2010 through June 2011, Janie M. Bey agreed with other persons to use counterfeit credit cards at Walmart stores in Western Pennsylvania to purchase merchandise.
Judge Cohill scheduled sentencing for April 30, 2013. The law provides for a maximum total sentence of five years in prison, a fine of $250,00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
Inspectors from the United States Postal Inspection Service along with agents from the United States Secret Service who, as part of the Western Pennsylvania Financial Crimes Task Force (WPFCTF), conducted the investigation that led to the successful prosecution of Janie M. Bey. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Brooklyn Real Estate Developer Charged in $2 Million Mortgage Fraud SchemeRead the Press Release
Brooklyn-based real estate developer Schelton Assoumou was arrested today on charges of bank fraud and wire fraud for his participation in a multi-year mortgage fraud scheme. The defendant’s initial appearance is scheduled this afternoon before United States Magistrate Judge Robert M. Levy at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Cary Rubenstein, Special-Agent-in-Charge, United States Department of Housing and Urban Development - Office of Inspector General; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and Steve Linick, Federal Housing Finance Agency - Office of Inspector General.
As detailed in the criminal complaint, between approximately June 2008 and June 2012, Assoumou purported to be a real estate developer doing business as the President of Renaissance Development, Inc. In that capacity, Assoumou sold homes in Brooklyn as investment properties. Assoumou assured the investors that he would manage the real estate properties on their behalf, including collecting rents and making mortgage payments to lenders. In fact, Assoumou made little more than token efforts to manage the properties and failed to maintain mortgage payments as promised. As a consequence, each of the loans Assoumou procured fell into default. The loss to the lenders described in the complaint was over $2 million. As noted therein, these were not the only fraudulent transactions disclosed during the government’s investigation.
As part of the scheme, Assoumou submitted fraudulent mortgage applications to the lenders. The applications contained various misrepresentations, including falsely inflated information concerning one borrower’s bank balance and false claims that certain borrowers would live at the properties – a requirement for receipt of certain federally insured loans. To further the scheme, Assomou provided to the lenders fraudulent documentation to support the false claims in the mortgage applications.
If convicted of all charges, the defendant faces a maximum sentence of 30 years in prison, restitution, and a fine of up to twice the loss inflicted by the defendant’s conduct.
“As alleged in the complaint, Schelton Assoumou purported to run a real estate development business that invested in the revitalization of the Bedford-Stuyvesant neighborhood in Brooklyn. Instead, his goal was to fleece investors and lending institutions alike, using false promises and fraudulent documents to carry out his scheme. Assoumou engaged in the very type of fraud that contributed to the recent collapse of the housing market,” stated United States Attorney Lynch. “Those who engage in such conduct will be vigorously investigated and prosecuted.”
FBI Special-Agent-in-Charge Venizelos said, “The defendant allegedly deceived both mortgage lenders and borrowers to enrich himself. Profiting from dishonest business doesn’t revitalize the economy, it undermines it.”
Federal Housing Finance Agency Inspector General Linick said, “The complaint alleges a scheme to defraud in which home mortgage lenders, among them Fannie Mae and Freddie Mac, lost millions of dollars as a result of Schelton Assoumou’s activities. My Office is committed to prosecuting such fraud schemes to the fullest extent under law.”
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency 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.
The government’s case is being prosecuted by Assistant United States Attorney Michael Warren.
The Defendant:
SHELTON ASSOUMOU
Age: 36
Residence: Brooklyn, NYBrooklyn Man Sentenced to 5 Years Imprisonment and Ordered to Pay $297,554.00 in Restitution for Credit Card FraudRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York announces that PAUL HILL (24, of Brooklyn, New York) was sentenced to 60 months imprisonment by United States District Court Judge Norman A. Mordue for Access Device Fraud and Aggravated Identity Theft. Judge Mordue also ordered HILL to pay restitution in the amount of $297,554.00 to seven banks that had been defrauded by the credit card scam.
Pursuant to his plea agreement with the government, HILL admitted that he fraudulently obtained, without permission via the internet, credit and debit card account numbers (account numbers) that belonged to other persons. Those account numbers were issued by financial institutions that engaged in interstate and foreign commerce. After obtaining the account numbers, PAUL HILL stored the information on his computer at his residence in Brooklyn, New York. Thereafter, PAUL HILL converted plastic cards, usually gift cards, into counterfeit credit or debit cards by re-encoding the cards with the fraudulently obtained account numbers and other information that belonged to other persons. Thereafter, PAUL HILL mailed the manufactured counterfeit cards to co-defendant Andre Greaves in Syracuse, New York.
After receiving the counterfeit cards, Andre Greaves utilized the manufactured counterfeit cards to effect transactions at numerous merchant locations in Onondaga County and elsewhere. Specifically, Greaves utilized the manufactured counterfeit cards to purchase stored value gift cards (gift cards). After purchasing the gift cards, Greaves redeemed a portion of the gift cards for his own personal use, and on the instruction of PAUL HILL, mailed a portion of the gift cards to HILL in Brooklyn, New York.
At the time PAUL HILL manufactured and mailed the counterfeit credit cards to Andre Greaves, he knew that the account numbers belonged to real people who had not authorized either Greaves or HILL to make the purchases. HILL, aided and abetted by Greaves, knowingly, willfully, and with the intent to defraud, used the manufactured counterfeit cards during a one year period to obtain items of value amounting to more than $1,000.00. Specifically, between June 2010 and April 2011, Andre Greaves made purchases totaling approximately $16,314.36 using unauthorized access devices that he obtained from HILL.
On March 27, 2012, Andre Greaves pled guilty to Access Device Fraud and Aggravated Identity Theft. On August 1, 2012, Judge Mordue sentenced Greaves to 36 months imprisonment and also ordered him to pay the same amount of restitution as HILL.
These arrests followed from a lengthy investigation conducted by the United States Secret Service, Syracuse Resident Office, the United States Secret Service, New York Field Office, the United States Postal Inspectors, and the Syracuse Police Department. The case is being prosecuted by Assistant United States Attorney Ransom P. Reynolds. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315) 448-0672.
Assistant Branch Manager Indicted for Bank EmbezzlementRead the Press Release
HOUSTON – Hannah Gonzales, 24, of Houston, has been arrested following the return of an 11-count indictment alleging she embezzled from International Bank of Commerce (IBC), United States Attorney Kenneth Magidson announced today.
Gonzales was arrested this morning without incident. She is expected to make her initial appearance before U.S. Magistrate Judge Frances Stacy at 2:00 today.
According to the indictment returned Wednesday, Jan. 9, 2013, Gonzales was an assistant branch manager at IBC. During 2010-11, Gonzales allegedly began withdrawing money from CD accounts of customers without their authorization. The indictment further alleges she chose customers who were either elderly or out of the country in order to reduce the chance she would get caught. By the time she was fired in July 2011, Gonzales had allegedly withdrawn almost $100,000.
The indictment also indicates she took money from her teller boxes without authorization. Gonzales allegedly conducted transactions in which there was no customer in addition to simply taking customer’s cash deposits without placing the cash into her teller box. On the day she was fired, IBC’s audits revealed she was short approximately an additional $24,000.
The indictment also includes notice of the government’s intent to seek a forfeiture of approximately $124,000.
If convicted, she faces up to 30 years on each count of conviction as well as a possible $1 million fine.
The investigation was conducted by the U.S. Secret Service. Assistant United States Attorney Sharad S. Khandelwal is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Arizona Man Sentenced for Conspiracy to Distribute MethRead the Press Release
United States Attorney Brendan V. Johnson announced that an Arizona man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on January 3, 2013, by Chief U.S. District Judge Jeffrey L. Viken. James Lee Walker, age 45, was sentenced to time served, 2 years' supervised release, and a $100 special assessment to the Victim Assistance Fund.
The charge relates to Walker conspiring with another person to distribute 50 grams or more of methamphetamine in the District of South Dakota and elsewhere in 2011 and 2012. Walker pled guilty to the charge on September 7, 2012.
This case was investigated by the Drug Enforcement Administration and the Unified Narcotics Enforcement Team. Assistant U.S. Attorney Ted L. McBride prosecuted the case.
Albuquerque Businesswoman Sentenced to a Month in Prison for Misdemeanor Tax Conviction - Also Ordered to Pay $125,776.54 in Restitution to IRSRead the Press Release
Also Ordered to Pay $125,776.54 in Restitution to IRS
ALBUQUERQUE – Delilah S. Haller, 56, of Albuquerque, N.M., was sentenced this morning to a month in prison followed by a year of supervised release, which will include four months of location monitoring, for her misdemeanor conviction for willfully failing to file a federal tax return. Haller also was ordered to pay $125,776.54 in restitution to the IRS.
Haller was indicted in March 2011 and charged with willfully failing to file federal tax returns for tax years 2005, 2006 and 2007. At the time of the misdemeanor offenses charged in the indictment, Haller did business as Rosewood Equities, LLC.
On May 17, 2012, Haller pled guilty to the third count of the indictment, charging her with willful failure to file a tax return for tax year 2007. In entering her guilty plea, Haller admitted that, although she earned more than $19,600 in income in 2007, she willfully failed to file a federal tax return for that year as required.
Haller filed tax returns for the three years charged in the indictment as well as for tax year 2004 before entering her guilty plea. Since then, Haller also has filed tax returns for tax years 2008 through 2011.
As required by the plea agreement, Counts 1 and 2 of the indictment were dismissed after Haller was sentenced. Haller is to surrender to the U.S. Marshals Service within a week to begin serving her prison sentence.
The case was investigated by the IRS, Criminal Investigation, and was prosecuted by Assistant U.S. Attorney Sasha Siemel.
Agoura Hills Man Sentenced to Seven Years in Federal Prison for Defrauding Investors in Advertising Ponzi SchemeRead the Press Release
LOS ANGELES – An Agoura Hills man who used his business to defraud dozens of victims in a multi-million dollar investment scheme has been sentenced to seven years in federal prison.
Dean P. Gross, 50, was sentenced yesterday afternoon by United States District Judge Stephen V. Wilson, who also ordered the defendant to pay restitution of approximately $15.4 million.
The sentencing of Gross was announced today by United States Attorney André Birotte Jr. and Bill Lewis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office.
Gross, who was charged with operating the investment scheme between 2006 and 2009, pleaded guilty to one count of wire fraud on August 6, 2012. While running the scheme, Gross collected more than $35.8 million from approximately 39 investors.
Gross operated the scheme through his home business, which he called Bridon Entertainment. When recruiting investors, Gross falsely represented to victims that he was a veteran of the advertising industry and, therefore, had significant connections that allowed him to purchase advertising time and space at discounted rates. Gross falsely advised investors that he would then resell the discounted advertising to large, well-known corporations at a substantial profit. Gross told investors that if they invested in Bridon Entertainment, their money would be used to purchase the advertising time and space and that investment returns would be generated by the profitable resale of that advertising.
The investigation revealed that Gross never used investors’ money to buy or sell advertising and that he did not have relationships with the well-known corporations he said would buy the ads.
In classic Ponzi-style fashion, investors were paid with money from new investors, and none of their returns were generated from advertising sales. The investigation indicated that 29 of the investors suffered $15.4 million in losses.
The investigation also revealed that Gross used millions of dollars in investor money to pay for personal expenses, including the construction of a vacation house.
This case was investigated by the Federal Bureau of Investigation.
Release No. 13-009
ATF and Lansing Police Department Arrest Seven on Federal Drug and Firearm ChargesRead the Press Release
GRAND RAPIDS, MICHIGAN – Federal and State authorities arrested seven residents of Northwest Lansing on various federal drug and firearm charges following the return of multiple federal indictments, U.S. Attorney Patrick A. Miles, Jr., Acting Special Agent in Charge Gilbert Salinas, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Teresa Szymanski, Lansing Police Department (LPD), announced today. The ATF and LPD are jointly targeting drug activity and violent crime in Northwest Lansing.Merza Mizori, 23, Gregory Dalton, 23, DeShun Dalton, 21, and Serwan Mizori, 22, (who was already in custody on unrelated state charges), jointly face multiple drug charges, including conspiring to distribute and to possess with intent to distribute crack cocaine and marijuana and actually distributing or possessing with intent to distribute those drugs as well as heroin. They face a minimum of ten years and up to life in prison on the conspiracy charge, up to 20 years in prison on the cocaine and heroin charges and up to five years in prison on the marijuana charges.
In a separate indictment, Jerome Houston, 26, faces charges for possessing firearms as a convicted felon, while Keith Houston, 22, stands charged with receiving a firearm while under indictment for a felony drug offense. Each charge is punishable by up to ten years in prison.
In another unrelated indictment, Brandon Jones, 26, (also already in custody on unrelated state charges) has been charged with possessing firearms, including an SKS rifle, as a convicted felon. That charge is punishable by up to ten years in prison.
Finally, Demanual Porter, 24, and Kevin Henry, 43, separately face charges for distributing crack cocaine. Each charge is punishable by up to 20 years in prison.
The charges in a federal indictment or state felony information are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
END
18 Defendants Charged with Operating a Large Scale Drug Organization in Anne Arundel and Howard CountiesRead the Press Release
Indictment Seeks a Money Judgment of at Least $10 Million, and the Forfeiture of Eight Properties, 22 Bank Accounts and 24 VehiclesBaltimore, Maryland - Eighteen defendants alleged to be part of a large drug trafficking organization operating in Anne Arundel and Howard Counties, Maryland; New Jersey; and California, have been charged in connection with distributing large amounts of marijuana, diverted pharmaceuticals, steroids, cocaine and other controlled substances. Approximately 250 law enforcement agents participated in the execution of today’s search and arrest warrants. Fifteen of the defendants have been charged by indictment with conspiring to distribute 1,000 kilograms or more of marijuana, and all of these defendants except Charles Thomson are also charged with conspiring to launder the drug proceeds:
- Kerem Dayi, a/k/a “Kenny” and “Cashmir,” age 40, of Gambrills, Maryland, and California;
- Robert Randall Glickman, age 61 , of Dallas, Texas;
- Scott Russell Segal, age 31, of Glen Burnie and Hanover, Maryland;
- Gabriel Gonzalez, age 26;
- Gokahn Bergal, age 29, of Clifton, New Jersey;
- Steven Neil Madden, age 43, of Randallstown, Maryland;
- Martin Dandy, age 31, of Arnold, Maryland;
- Patrick Russo, age 39 , of Fairfield, New Jersey;
- Ryan Burton Wheeler, age 32, of Annapolis, Maryland;
- Anthony Caesar Santoiemma, a/k/a “Bo,”age 43, of Annapolis;
- Anthony Evans Owings Seen, age 26, of Glen Burnie;
- Christopher John Garner, age 41, of Hanover;
- Frederick Blair Thomas, age 31, of Glen Burnie;
- Sae Hyong Hwang, age 33, of Odenton, Maryland; and
- Charles Michael Thomson, age 62, of Savage Minnesota.
The indictment was returned under seal on January 10, 2013. Three defendants are charged by complaint with the marijuana conspiracy:
- Alexandros Lineberry, age 36, of Arnold;
- Jeffrey Dennis Small, age 32, of Annapolis; and
- Donald Goodman, age 63, of Baltimore.
The complaint was filed yesterday under seal. The indictment and complaint were unsealed today upon the arrests of 15 defendants and the execution of search warrants at 17 residences and businesses of the defendants in Maryland, five in New Jersey and one in California. At least 30 vehicles, 60 pounds of marijuana, $300,000 in cash and 35 firearms have been seized.
The indictment and complaint were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Robert Brisolari of the Drug Enforcement Administration - Washington Field Division; Anne Arundel County Police Chief Larry W. Tolliver; Howard County Police Chief William McMahon; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Acting Special Agent in Charge Sheila Olander of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.
“The Drug Enforcement Administration, working in partnership with both federal and local law enforcement, including the U.S. Attorney's Office for the District of Maryland are bringing to justice18 members of a narcotic trafficking organization operating throughout the United States,” stated Acting Special Agent in Charge Robert Brisolari of DEA’s Washington Division. “As a result of this investigation numerous properties, vehicles and banks accounts have been seized totaling millions of dollars.”
The affidavits supporting the complaint and search warrants allege that the defendants operated a drug trafficking organization in Anne Arundel and Howard Counties, primarily dealing in marijuana, but also dealing in cocaine and diverted pharmaceuticals. The investigation began when defendant Frederick Thomas was in a single car accident on Route 100 at Quarterfield Road in Anne Arundel County on January 7, 2012. Inside his car, agents discovered a shrink-wrapped package of 590 grams of marijuana, a money counting machine, a talley sheet and 126 bank money bands for $2,000.
The affidavits allege that further investigation revealed that Dayi is the drug organization’s leader. Dayi obtains the marijuana from contacts in California and New Jersey. Dayi has 20 pounds or more of marijuana shipped, or 50 to 400 pounds of marijuana driven, to Maryland at a time. Dayi directs the storage of marijuana at houses rented and managed by him and members of the organization, and directs the movement of marijuana and cash between Maryland, California, Ohio and New Jersey.
According to the affidavits, Dayi supplies the marijuana to Segal who is the main wholesale distributer in Anne Arundel County. Segal maintained a stash house off of Interstate 97 in Anne Arundel County. Santoiemma allegedly brokers deals on behalf of Dayi and makes a commission. Marijuana proceeds were allegedly sewn into handbags and delivered to the source of supply in California. Santoiemma allegedly supplied young women to the organization who would fly from BWI to California with these handbags. Thomas allegedly worked at the direction of Dayi, Segal and Santoiemma.
The affidavits allege that Wheeler is a wholesale cocaine customer of Dayi, and supplies ounce and pound quantities of marijuana and cocaine to others for further distribution. Co-defendants Segal, Madden, Bergal, Gonzalez, Glickman, Hwang, Dandy, Seen and Russo are in Dayi’s innermost, trusted circle of lieutenants, who either buy/sell drugs, participate in the laundering of money and/or operate the daily business of Krush.
Glickman allegedly advises Dayi as to the laundering of drug proceeds. The drug organization allegedly launders the drug proceeds by: smuggling bulk cash in cars; sending cash through the mail and commercial delivery services; structuring deposits into bank accounts and removing it from banks in other states; and by investing money into, and removing money from, otherwise legitimate businesses operated by members of the conspiracy . The organization allegedly established an Ebay business named Krush, NYC, LLC for use as a front for marijuana distribution and the laundering of the proceeds. Krush conducts EBay sales of liquidated shoes, clothing and accessories, and uses a warehouse in Jessup, Maryland for business purposes and allegedly for distribution of marijuana.
The indictment seeks a money judgment of at least $10 million, and the forfeiture of eight properties, 22 bank accounts, 24 vehicles, and the assets and inventory of three businesses.
All of the defendants face a maximum sentence of life in prison for the drug conspiracy; and the 14 defendants charged in the indictment with the money laundering conspiracy face a maximum sentence of 20 years in prison. Initial appearances of the defendants arrested in Maryland began at 2:00 pm today in U.S. District Court in Baltimore.
“IRS Criminal Investigation’s unique role in major drug trafficking investigations is to provide financial expertise by targeting the profit and financial gains of narcotics traffickers, enabling increased criminal prosecutions and asset forfeitures,” said Sheila Olander, Acting Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “Today’s successful execution of multiple arrests and search warrants is an important victory for the American public. IRS Criminal Investigation will continually collaborate on organized crime investigations along with its law enforcement partners to financially disrupt and dismantle those organizations and bring criminals to justice.”
An indictment and complaint are not a finding of guilt. An individual charged by indictment or complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the DEA, Anne Arundel County Police Department, Howard County Police Department, ATF, IRS - Criminal Investigation, HSI Baltimore, U.S. Postal Inspection Service, and the Maryland Financial Crime Task Force for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Andrea Smith and Brooke Carey, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
14 January 2013
Wheeling Man Admits to International Firearm TraffickingRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA — A 25-year old Wheeling, West Virginia, man has admitted to acquiring firearms in the Ohio Valley and then shipping them to other countries in violation of federal law.
United States Attorney William J. Ihlenfeld, II, announced that MICHAEL STEVEN FRANK entered pleas of guilty to “Conspiracy to Export Firearms” and “Money Laundering” in the United States District Court in Wheeling. FRANK admitted in court that from February 7, 2012, to August 2, 2012, he unlawfully exported twenty-four firearms to purchasers in Canada and Israel. At least one of the foreign sales was funded through an unlawful money laundering transaction in which the buyer anonymously shipped $2,000 in currency to FRANK.
The investigation initially indicated the guns were being shipped by a man named “Jason Silvers” but the U.S. Postal Service was able to determine that the shipper was actually FRANK. It was further discovered that FRANK purchased the firearms from local gun dealers and then obliterated the serial numbers on the weapons before shipping them outside of the country in exchange for cash payments. As part of his plea, FRANK will forfeit all firearms involved in the violations as well as a money judgment of $2,000.
FRANK, who is free on bond pending sentencing, faces up to 25 years imprisonment and a fine of up to $750,000.
This case was prosecuted by Assistant United States Attorney Michael D. Stein and was investigated by the Postal Inspection Service; US Immigration and Customs Enforcement, Homeland Security Investigations (ICE/HSI) and the Bureau of Alcohol, Tobacco and Firearms.
U.S.Supreme Court Denies Writ in Matter of Jason PleauRead the Press Release
Today, the United States Supreme Court denied petitions for writs of certiorari filed by Governor Lincoln D. Chafee and defendant Jason Wayne Pleau. This means that the Supreme Court has refused to consider the Governor’s and Pleau’s challenge to the earlier en banc decision of the United States Court of Appeals for the First Circuit, requiring that the state surrender custody of Pleau for trial on pending federal charges.
United States Attorney Peter F. Neronha commented, “I am obviously pleased with the decision of the United States Supreme Court not to review the First Circuit’s entirely correct ruling requiring the State of Rhode Island to surrender custody of Mr. Pleau to the United States for trial in federal court. As we have been since September of 2010, we are prepared to move ahead with this case immediately and without delay.”
Contact: 401-709-5357
[email protected]Two Romanian Nationals Sentenced for Naturalization FraudRead the Press Release
BOISE – Romanian nationals Ramona Alina Fenesan, 32, and Florin Fleischer, 34, both formerly living in Ketchum, Idaho, were sentenced today for unlawful procurement of United States citizenship, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge sentenced each defendant to two years’ probation, imposed a $1,000 fine, and entered an order revoking their United States citizenship. They will be subject to immigration enforcement action by U.S. Immigration and Customs Enforcement (ICE). Fenesan and Fleischer pleaded guilty to the charge in September and October 2012, respectively.
According to plea agreements, Fenesan and Fleischer entered into fraudulent marriages with United States citizens in the fall of 2003, with the sole purpose of evading immigration laws and obtaining immigration benefits. According to court documents, the defendants did not reside with the individual they married. Following their marriages, the defendants filed paperwork with the Department of Homeland Security/Citizenship and Immigration Services (USCIS), seeking lawful permanent resident status based on their fraudulent marriage to a U.S. citizen. USCIS subsequently approved their applications and the defendants became naturalized United States citizens. Upon receiving naturalization, Fenesan and Fleischer divorced their U.S. citizen spouses, with whom they had entered into a fraudulent marriage, and married each other.
At today’s sentencing hearings, defense counsel informed the court that as a result of the fraud and the resulting convictions, the defendants lost their home and their jobs, and will be deported back to Romania.
“U.S. citizenship is a privilege deserved only by those who obtain it legally,” said Brad Bench, special agent in charge of HSI Seattle, who oversees HSI investigations in Idaho. “As this case shows, HSI will move aggressively to identify and prosecute fraudsters who corrupt the immigration process for personal gain.”
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Two Plead Guilty to Federal Gun CrimesRead the Press Release
Cases Related to Ongoing Aryan Knights Investigation
BOISE – Andrew Gallegos, 23, and Cameron James Ball, 25, both of Boise, Idaho, pleaded guilty today in United States District Court to unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced. Gallegos and Ball were charged in two separate indictments filed in August and September 2012, respectively.
Gallegos and Ball pleaded guilty to illegally possessing the firearms after having been convicted of a felony crime punishable by a term of imprisonment exceeding one year. Gallegos admitted in court today that on February 21, 2012, he possessed a Smith & Wesson .357 semi-automatic pistol. According to the plea agreement, Ball admitted that on February 8, 2012, he unlawfully possessed a CHS a Hi-Point .40 semi-automatic pistol.
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. The government is seeking forfeiture of the firearms.
Gallegos is set for sentencing on April 8, 2013, before U.S. District Judge Edward J. Lodge, at the federal courthouse in Boise. Ball is set for sentencing on April 9, 2013, before Chief U.S. District Judge B. Lynn Winmill.
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 investigation focused on illegal drug distribution by the “Aryan Knights,” a gang active in prison and on the streets throughout Idaho. Through the investigation, law enforcement agents identified Aryan Knights gang members who were trafficking methamphetamine, as well as associates of the gang who were the source of that methamphetamine.
The 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.
Two Plead Guilty in Alton Heroin Overdose DeathRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Tyrone L. Adams and Cara L. Moss pled guilty in U.S. District Court in East St. Louis on January 14, 2013, to distributing the heroin which caused the death of Leonard O. Hormann, III, in Alton on August 20, 2012.
“These convictions are another strong message to drug dealers throughout Southern Illinois that they peddle poison at their own risk,” said United States Attorney Wigginton. “When such dealers are caught and convicted, those risks are enormous – in this case both defendants face a possible life sentence. My Office is determined to continue its initiative to stop the epidemic of heroin overdose deaths among our young citizens.”
Wigginton also complimented the work of the Alton Police Department and the Madison County State’s Attorney, saying that, “The Alton police conducted an investigation in this case that could serve as a model for future investigations. I am also proud of the fact that these convictions resulted from close coordination with the Madison County State’s Attorney. The results in this case demonstrate the benefits of careful federal and state cooperation.”
Adams, 33, and Moss, 26, admitted selling heroin to Hormann at the residence which Adams and Moss shared at Powhattan Street in Alton. Hormann paid $100 for the heroin which killed him. Hormann’s family found him dead at his own residence in Alton on August 21, 2012. Hormann was 23 years old when he died.
In addition to pleading guilty to the charge of Distribution of Heroin Resulting in Death, Adams and Moss also pled guilty to a second charge of Maintaining Drug-Involved Premises at their residence on Powhattan Street between June 2012 and September 2012. Adams and Moss admitted to selling more than 100 grams of heroin (3 ½ ounces) to various heroin customers who came to their residence during that time period.
In addition, Adams pled guilty to a third charge of Distribution of Heroin Within 1000 Feet of a School. Adams’ residence on Powhattan was located near “The Motivational Achievement Center,” a public school, in Alton.
Adams and Moss are scheduled to be sentenced on April 29, 2013. Both Adams and Moss face a maximum possible sentence of life imprisonment when they are sentenced. Adams and Moss have both been held without bail since they were arrested by Alton police on September 5, 2012.
Alton police conducted the investigation which led to the convictions of Adams and Moss. This case is assigned to Assistant United States Attorney Robert L. Garrison.
Two Newark, N.J., Men Charged with Armed RobberyRead the Press Release
NEWARK, N.J. – Two Newark, N.J., men are expected to appear in federal court this afternoon after being charged with armed robbery of the Golden Palace jewelry store in Orange, N.J., U.S. Attorney Paul J. Fishman announced.
Charles Madison, 41, and Antonio Moore, 44, both of Newark, N.J., are charged by Complaint with one count of robbery and one count of weapon possession. They will make a court appearance today at 1:30 p.m. before U.S. Magistrate Judge Patty Shwartz in Newark federal court.
According to the Complaint: On August 6, 2012, Madison, Moore, and a co-conspirator agreed to rob the Golden Palace jewelry store. Madison agreed to supply the weapons and serve as the getaway driver, while Moore and the co-conspirator agreed to rob the store at gunpoint. In the early evening of August 6, Moore and the co-conspirator entered the store, pulled stockings over their faces, drew weapons, and demanded that the store’s employees empty all of the jewelry from the display cases.
At one point during the robbery, Moore stated that the employees were taking too long to hand over the jewelry. Moore then approached a 22-year-old female employee and punched her in the head, knocking her against the wall and causing her to collapse to the ground.
After taking approximately $120,000 in jewelry from the store, Moore and the co-conspirator ran into the street and jumped into a white Ford pick-up truck driven by Madison. Approximately one hour later, N.J. State Police pulled over the vehicle on South Orange and Speedway avenues in Newark. All three men were inside. Troopers found dozens of pieces of gold jewelry scattered across the back seat of the car, along with two pairs of stockings and a pair of work gloves. Underneath the car, tucked into the spare tire wheel well, troopers retrieved two firearms, including a semi-automatic handgun with a large-capacity magazine.
If convicted on the robbery charge, both men face maximum sentence of 20 years in prison and a maximum fine of $250,000.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez in Newark, with the investigation leading to today’s Complaint. Fishman also thanked the Orange Police Department and the N.J. State Police for their assistance and cooperation on the investigation.
The government is represented by Assistant U.S. Attorney Andrew J. Bruck of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.13-024
Madison, Charles Et. Al. Complaint
Two Mothers Sentenced to Prison Terms for Using Their Children in Staged Accident SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), and Jeff Atwater, Florida Chief Financial Officer, announced that Ana Ovando, 42, of West Palm Beach, was sentenced Friday, January 11, 2013, to 78 months in prison followed by three years of supervised release for her role in a staged accident fraud scheme. On October 25, 2012, a jury convicted Ovando of conspiring with others to commit mail fraud, in violation of Title 18, United States Code, Sections 1341 and 1349 as well as of 14 substantive counts of mail fraud, in violation of Title 18, United States Code, Section 1341. Ovando used her five children – aged between three and seventeen – during three staged accidents that occurred within twelve months.
On January 3, 2013, Janice Velez, 39, also of West Palm Beach, was sentenced to 24 months in prison followed by two years of supervised release for her role in the same staged accident fraud scheme. Velez pled guilty on October 24, 2012 to conspiring with others to commit mail fraud, in violation of Title 18, United States Code, Sections 1341 and 1349, as well as to 8 substantive counts of mail fraud, in violation of Title 18, United States Code, Section 1341. Velez used her two children during one staged accident.
According to court documents and evidence presented at trial, under Florida’s “No Fault” insurance law, insurers must provide Personal Injury Protection (PIP) coverage of $10,000 per person. Ovando and Velez and other co-conspirators unlawfully enriched themselves by submitting fraudulent PIP claims for chiropractic and massage therapy treatments for themselves and their children. Ovando and Velez made false claims that both themselves and their children received chiropractic and massage therapy services that they neither needed nor received over a several month period. Ovando took her children to New York Medical and Rehab Center and Velez took her children to Karow Chiropractic Center, both located in West Palm Beach. There, massage therapists admitted that these patients signed blank treatment sheets that the massage therapists later completed and submitted to the insurance company for reimbursement.
Ovando and Velez are the latest federal defendants to be sentenced in the investigation known as Operation Sledgehammer. To date, a total of 26 defendants have been charged, resulting in 22 federal convictions. Four defendants are fugitives who have fled the United States.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CID, and the Florida Department of Insurance Fraud. Mr. Ferrer also thanked the National Insurance Crime Bureau (NICB) for its assistance in this investigation, as well as the members of the Greater Palm Beach Health Care Fraud Task Force. The case is being prosecuted by Assistant U.S. Attorney A. Marie Villafaña.
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.
Two Individuals Sentenced in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA - Two individuals were sentenced on January 4, 2013, in United States District Court in Clarksburg by Judge Irene M. Keeley.
United States Attorney William J. Ihlenfeld, II, announced that:
JAMES ROBERT HURST, 45, of New Milton, West Virginia, was sentenced to 60 months imprisonment to be followed by three years of supervised release. HURST enterd a plea of guilty on August 29, 2012, to “Manufacturing More than 100 Marijuana Plants” and “Possession with Intent to Distribute More than 100 Marijuana Plants,” both on August 15, 2011, in Doddridge County, West Virginia. HURST, who is free on bond, will self-report to the designated Federal institution.
The case was be prosecuted by Assistant United States Attorney Stephen D. Warner and investigated by the Doddridge County Sheriff’s Department and the West Virginia State Police.
KRISTEN DAVIS, age 38, of Clarksburg, was sentenced to 27 months imprisonment to be followed by six years of supervised release. DAVIS entered a plea of guilty on September
26, 2012, to the “Distribution of Crack Cocaine within 1,000 Feet of St. Mary’s Grade School” on July 1, 2011, in Clarksburg. DAVIS was remanded to the custody of the United States Marshal pending designation to a Federal institution.The case was prosecuted by Assistant United States Attorney Shawn A. Morgan and investigated by the Harrison County Task Force consisting of officers from the Clarksburg Police Department, the Harrison County Sheriff’s Department and the Bridgeport Police Department.
Two Essex County, N.J., Men Charged with CarjackingRead the Press Release
NEWARK, N.J. – One of two Essex County, N.J., men arrested in connection with a gunpoint carjacking in March 2012 is expected to make his initial appearances in court today, U.S. Attorney Paul J. Fishman announced.
Sharod Culp, 19, and Anthony Jefferson, 19, both of Newark, are charged by Complaint with one count of theft of a motor vehicle by force, violence, and intimidation, and one count of use of a firearm in furtherance of a crime of violence. Culp is scheduled to make his initial court appearance this afternoon before U.S. Magistrate Judge Patty Shwartz. Jefferson was arrested in Florida and will make his initial court before U.S. Magistrate Judge Thomas B. McCoun 3rd in Tampa federal court.
According to the Complaint:During the morning of March 11, 2012, Culp and Jefferson approached two individuals who were sitting in a parked 2009 Hyundai Sonata in the area of Patterson Street in Newark. Culp pointed a firearm at the victims, and both Culp and Jefferson ordered the victims to get out of the car. After robbing, taunting and threatening the victims, Culp and Jefferson fled the area in the carjacked vehicle.
The carjacking count is punishable by a maximum potential penalty of 15 years in prison. The charge of use of a firearm in furtherance of a crime of violence is punishable by a maximum potential penalty of life in prison and a mandatory minimum sentence of 7 years in prison, which must run consecutively to any other prison term. Each of the two counts also carries a maximum fine of $250,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez in Newark; the Newark Police Department, under the leadership of Director Samuel A. DeMaio and Chief Sheilah A. Coley; and the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; as well as criminal investigators from the U.S. Attorney’s Office in Newark with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Lisa M. Colone of the U.S. Attorney’s Office Criminal Division in Newark.The charges and allegations contained in the Complaint are merely accusations and the defendants are considered innocent unless and until proven guilty.
13-025
Defense counsel: Donald McCauley Esq., Assistant Federal Public Defender, NewarkCulp, Sharod Et. Al. Complaint
Tupper Lake Man Sentenced to 6 Years for Possession of Child PornographyRead the Press Release
Richard S. Hartunian, United States Attorney, Northern District of New York, announced that JAMES L. TABOLT, JR., age 40, of Tupper Lake, New York was sentenced in U.S. District Court in Albany today in connection with his guilty plea on September 13, 2012 to possession of child pornography. In entering his guilty plea before Senior U.S. District Judge Thomas J. McAvoy, TABOLT had admitted that between June 2012 and February 2011 he possessed more than 1300 images of child pornography on a home computer.
Today, Judge McAvoy sentenced TABOLT to 72 months incarceration to be followed by a 15 year term of federal Supervised Release. He will also be required to register with New York State as a sex offender.
In December of 2010, a New York State Police investigator assigned to the New York Internet Crimes Against Children Task Force detected images of child pornography being made available from an internet protocol address in the Tupper Lake area. Investigators were able to determine the images came from a computer in the defendant’s residence. Following the execution of a search warrant by members of the New York State Police, Tupper Lake Police Department, and the Franklin County Sheriff’s Department, the defendant’s computer was seized. A forensic examination was conducted following the issuance of a federal search warrant, which resulted in the recovery of more than 1300 images of child pornography.
TABOLT’s arrest was the result of a joint investigation conducted by the New York State Police, Tupper Lake Police Department, Franklin County Sheriff’s Department, Clinton County Sheriff’s Department, the U.S. Immigration and Custom’s Enforcement (ICE), Homeland Security Investigations (HSI), and the New York State Internet Crimes Against Children Taskforce (ICAC). Assistance was also provided by the Utica Police Department’s Digital Forensics Laboratory. The joint effort is a part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was prosecuted by Executive Assistant U.S. Attorney John G. Duncan.
Three Individuals Sentenced in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA — Three individuals were sentenced on January
7, 2013, in United States District Court in Martinsburg by Judge Gina M. Groh.United States Attorney William J. Ihlenfeld, II, announced that:
GREGORY LYTE, JR., age 36, of Hagerstown, Maryland, was sentenced to 87 months imprisonment to be followed by 6 years of supervised release. LYTE entered a plea of guilty on September 12, 2012, to “Distribution of Crack Cocaine” on September 30, 2011, in Martinsburg. LYTE was remanded to the custody of the United States Marshal pending designation to a Federal institution. The case was investigated by the Eastern Panhandle Drug
& Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, and the Berkeley County Sheriff’s Department.LOREN CONSTANTINE BROWN, age 43, of Silver Springs, Maryland, was sentenced to 70 months imprisonment to be followed by 4 years of supervised release. BROWN entered a plea of guilty on September 13, 2012, to “Possession with Intent to Distribute 88.4 Grams of Crack Cocaine” on June 28, 2012, in Keyser, West Virginia. BROWN was remanded to the custody of the United States Marshal pending designation to a Federal institution. The case was investigated by the Potomac Highlands Drug & Violent Crime Task Force, consisting of officers from the Federal Bureau of Investigation, and the West Virginia State Police - Bureau of Criminal Investigations.
These cases were prosecuted by Assistant United States Attorney Thomas O. Mucklow.
JAMES ALBERT WOLF, age 64, of Kearneysville, West Virginia, was sentenced to 51 months imprisonment to be followed by 15 years of supervised release. WOLF entered a plea of guilty on September 13, 2012, to “Possession of Child Pornography.” During a search warrant executed on WOLF’S residence, several computers were seized which contained 30 still images and 59 video images of child pornography. WOLF, who is free on bond, will self- report to the designated Federal institution on February 11, 2013. This case was prosecuted by Assistant United States Attorney Paul T. Camilletti and investigated by the West Virginia State Police.
This case was prosecuted 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, 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.
Thirteen People Indicted for Roles in Ring That Brought Heroin to Ashtabula, Led to Overdose DeathRead the Press Release
A federal grand jury returned a 42-count indictment against 13 people who are accused of participating in a large-scale heroin trafficking ring in the Ashtabula areas and resulted in the overdose death of an Ashtabula resident last year.
The unsealing of the indictment was announced today by Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, Robert L. Corso, Special Agent in Charge of the U.S. Drug Enforcement Administration, Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation, and William Johnson, Ashtabula County Sheriff.
The indicted individuals are:
DEFENDANTAGE
ADDRESS
Rayshawn Reed, aka “Ray,” aka “Racey”
37
Ashtabula, Ohio
30
Ashtabula, Ohio
Jamarce Miller, aka “Jamie”
36
Ashtabula, Ohio
Amanda Loving
30
Geneva, Ohio
Isaac Hawkins
24
Unknown
Louis Snyder
48
Ashtabula, Ohio
James Robinson, aka “Marell Holley”
37
Ashtabula, Ohio
Tricia Lewis
35
Ashtabula, Ohio
Joey Schmeisser
30
Unknown
Kevin Fridrich
28
Geneva, Ohio
Reginald Bryant, aka “Reg”
39
Euclid, Ohio
Shaunci Osborne
20
Ashtabula, Ohio
Laketha Harris, aka “Jay”
35
Ashtabula, Ohio
Count 1 of the indictment charges the defendants with conspiracy to distribute more than a kilogram of heroin, a Schedule I controlled substance.Count 2 of the indictment charges Sherord Miller and Shaunci Osborne with conspiracy to engage in money laundering, based on their use of a bank safe deposit box to store and conceal profits from the sale of heroin.
Count 3 of the indictment charges Rayshawn Reed with knowingly and intentionally possessing with intent to distribute approximately 171 grams of heroin.
Count 4 of the indictment charges Reginald Bryant with felon-in-possession of a firearm.
Counts 5-42 of the indictment charge each defendant with using a communications facility (a telephone) to facilitate a drug trafficking offense.
“This group is accused of bringing piles of heroin into Ashtabula, which directly resulted in the death of a young woman,” Dettelbach said.
“Heroin abuse in Ohio and across the country is on the rise, and it is directly responsible for hundreds of overdose deaths every year,” Corso said. “This indictment illustrates that the DEA and our law enforcement partners will continue to aggressively target those individuals that choose to sell heroin in our communities, with total disregard for human life.”
Anthony added: “In the past 2 ½ years, collaborative law enforcement initiatives have resulted in the indictment of more than 40 individuals responsible for dangerous illegal drugs in the Ashtabula area, 13 of those being responsible for heroin distribution and taken into custody today. The FBI, through partnerships with state, local and federal agencies will continue efforts to dismantle drug trafficking organizations that bring danger to our residents.”
Law enforcement personnel seized heroin, firearms and more than $320,000 in U.S. currency during the year-long investigation. The indictment also seeks the forfeiture of five vehicles used as part of the conspiracy: a 2004 Chevrolet Suburban, a 2004 Cadillac CTS, a 2002 Cadillac Escalade, a 2004 BMW 745Li and a 1976 Oldsmobile Cutlass.
The indictment alleges that from March 2012 to August 15, 2012, defendant Rayshawn Reed arranged for multiple kilogram quantities of heroin to be brought into Northeast Ohio from the Chicago area.
The heroin was then distributed to co-conspirators in Ashtabula, including Sherord Miller and Jamarce Miller. Sherord Miller and Jamarce Miller then resold the heroin to other co-conspirators, including defendants Amanda Loving, Isaac Hawkins, Louis Snyder, James Robinson, Tricia Lewis, Joey Schmeisser, and Kevin Fridrich, and to heroin users. Defendants Shaunci Osborne and Laketha Harris helped Sherord Miller sell and distribute heroin, and that Reginald Bryant furnished heroin to the co-conspirators during periods when shortages occurred, according to the indictment.The indictment further alleges that heroin from the conspiracy which had been distributed by Jamarce Miller resulted in the fatal heroin overdose of an Ashtabula-area resident on or about July 7, 2012.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal records, if any, their role in the offenses, and the characteristics of the violations. In all cases the sentences will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorneys Joseph P. Schmitz and Vasile C. Katsaros following a one-year investigation. It was conducted by agents of the U.S. Drug Enforcement Administration and the Federal Bureau of Investigation, with assistance from the Ashtabula County Sheriff’s Office, the Ashtabula Police Department, the Trumbull/Ashtabula Group Task Force (TAG), the Ohio Bureau of Criminal Identification and Investigation (BCI), the Cuyahoga County Sheriff’s Office and the Ohio State Highway Patrol.
An indictment is only 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.
St. Paul Man Sentenced for Filing False Insurance Claim for Purportedly Stolen ArtRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 39-year-old St. Paul man was sentenced for filing a false insurance claim for $250,000. United States District Court Judge Susan Richard Nelson sentenced Jason William Sheedy to three years of probation on one count of wire fraud in connection to this incident. In addition, Sheedy must pay $352,539.58 in restitution and serve 500 hours of community service. He was charged on August 6, 2012, and pleaded guilty on August 17, 2012.
In his plea agreement, Sheedy admitted that between September 2007 and December 2011, he devised a scheme to defraud the AXA Art Insurance Corporation (“AXA”). AXA is an insurance company that insures artwork and items of historical value.
In September of 2007, Sheedy insured several items, including artwork, with AXA. Then, on September 27, 2007, he filed an insurance claim for $274,905 with the company, reporting that some of the insured pieces, including several works of art, had been stolen from a moving van. On January 28, 2008, pursuant to that claim, AXA mailed Sheedy a check for $254,832. On May 24, 2011, however, Sheedy listed six of the reportedly stolen paintings on Artbrokerage.com, an Internet website for a Nevada auction house. A December 2011 search of Sheedy’s residence yielded all but one of the art pieces reportedly stolen.Sheedy further admitted filing a false claim with the Farmer’s Insurance Company in September 2007. That claim was purportedly for stolen household items, valued at $93,302, that were, in fact, not stolen. The insurance company paid the claim on February 12, 2008.
This case was the result of an investigation by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorneys Lola Velazquez-Aguilu and Benjamin F. Langner.Southampton Man Sentenced for Marijuana and Money LaunderingRead the Press Release
BOSTON - A Southampton man was sentenced today in U.S. District Court in Springfield for growing marijuana and laundering the profits.
Gregory Krzanowski, 39, was sentenced by U.S. District Judge Michael A. Ponsor to three years of probation, a $2,500 fine and forfeiture of $300,000. In October 2012, Krzanowski pleaded guilty to possession with intent to distribute marijuana and three counts of money laundering.In August 2011, Krzanowski operated an indoor marijuana grow house. On three dates in 2009, Krzanowski made cash deposits of the proceeds from this marijuana business into the bank account which was in the name of another legitimate business that he operated.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Alex J. Grant of Ortiz’s Springfield Branch Unit.
Rocky and Leon Houston Arrested for Federal Firearms ViolationsRead the Press Release
KNOXVILLE, Tenn. – On Friday, January 11, 2013, brothers Rocky Houston, 52, and Leon Houston, 54, both of Ten Mile, Tenn., were arrested on federal firearms charges. Agents and officers from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Roane County Sheriff's Office, and other local law enforcement agencies executed arrest and search warrants at the Houston family property located in Roane County, Tenn., announced William C. (Bill) Killian, U.S. Attorney for the Eastern District of Tennessee, Carl Vasilko, Acting Special Agent in Charge, ATF, and Jack Stockton, Sheriff of Roane County.
Rocky Houston has been charged with being a convicted felon in possession of firearms, and Leon Houston has been charged with possession of firearms while being an unlawful user of controlled substances. Upon conviction, each faces up to 10 years in prison and a fine of up to $250,000. Both will appear before a U.S. Magistrate Judge on Monday, January 14, 2013, for an Initial Appearance on the charges which have been lodged against them. Rocky Houston will appear at 10:30 a.m., and Leon Houston will appear at 3:00 p.m., before the Honorable Bruce Guyton, U.S. Magistrate Judge.
U.S. Attorney Bill Killian expressed his appreciation to the agents of ATF and the officers from the Roane, Knox and Loudon County Sheriffs' Offices for their participation in the successful execution of these warrants. “Our commitment of cooperation and support from our federal law enforcement agencies to our state and local colleagues is strong. It will remain so," said U.S. Attorney Killian.
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.
Rochester Man Pleads Guilty in Child Pornography CaseRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Douglas C. Tatner, II, 33, of Rochester, N.Y., pleaded guilty to possession of child pornography before U. S. District Judge David G. Larimer. The charge carries a maximum penalty of 10 years in prison, and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that a search warrant was executed at Tatner's former residence on Glide Street in Rochester by members of the FBI's Cyber Crimes Task Force in January 2012. The search warrant followed a report from a witness who saw images of child pornography depicting children between the ages of 3 to 12 on the defendant's computer. Tatner admitted to possessing the images of child pornography, including images depicting pre-pubescent minors.
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.
The plea is the culmination of an investigation on the part of the FBI's Cyber Crimes Task Force, under the direction of Special Agent in Charge Christopher M. Piehota. The task force includes the Rochester Police Department, under the direction of Chief James Sheppard.
Sentencing is scheduled for May 6, 2013 at 9:30 a.m. before Judge David G. Larimer
Pine Ridge Man Indicted for EscapeRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge man has been indicted by a federal grand jury for leaving the Community Alternatives of the Black Hills on December 15, 2012, and not returning.
Abraham Yellow Horse, age 24, was indicted by a federal grand jury on January 8, 2013, for Escape from Custody. Yellow Horse 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 5 years of imprisonment and a $250,000 fine.
The charge is merely an accusation, and Yellow Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the United States Marshal’s Service. Assistant United States Attorney Eric Kelderman is prosecuting the case. Yellow Horse was remanded to the custody of the United States Marshal. A trial date has not yet been set.
Philadelphia Man Pleads Guilty to Airport HoaxRead the Press Release
PHILADELPHIA - Kenneth W. Smith, Jr., 26, of Philadelphia, PA, pleaded guilty in federal court today in connection with a hoax called in to authorities, on September 6, 2012, about explosives on an aircraft. Smith was charged with and pleaded guilty to malicious false information about an explosive, and false information and hoaxes. U.S. District Court Judge Gene E.K. Pratter scheduled a sentencing hearing for April 16, 2013. On September 6, 2012, Smith placed a telephone call to the Philadelphia Airport Police reporting that someone had allegedly carried an explosive substance onto an aircraft bound for Dallas-Ft. Worth Airport when Smith knew the statement was false. The report resulted in the flight being turned around and brought back to Philadelphia. Smith admitted he told police that an individual had carried liquid explosives onto the plane and that he targeted that individual in order to “avenge” a female.
Smith faces a maximum possible sentence of 15 years in prison, a fine of up to $500,000, special assessments, supervised release and restitution for the costs associated with the crimes. He has agreed to write a letter of apology to every passenger on board the flight, to reimburse the costs of emergency response, and to pay restitution to his victimsThe case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, the Philadelphia Police Department, the Transportation Security Administration, and the U.S. Department of Transportation Office of Inspector General. It is being prosecuted by Assistant United States Attorney Jennifer Arbittier Williams.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Perry County Man Arraigned on Drug ChargeRead the Press Release
A Perry County man made his initial appearance in federal court on January 7, 2013, on a one-count superseding indictment charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Henry D. Jacquez, 35, of Cutler, was charged, along with seven others, in a one-count superseding indictment charging conspiracy to manufacture methamphetamine. The offense is alleged to have occurred between November, 2011 and October 12, 2012 in Perry, Jackson and Randolph Counties. Upon conviction, the offense carries a penalty of up to 20 years in prison, at least 3 years of supervised release, and a fine of up to $1,000,000. At a January 10, 2013, detention hearing, Jacquez was ordered held without bond, pending a March 11, 2013, jury trial.
Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Randolph County Sheriff’s Office, Perry County Sheriff’s Office, the Percy Police Department, the Murphysboro Police Department, the Sparta Police Department and the Drug Enforcement Administration. The United States Marshals Service has also assisted during the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Pamlico Drug Dealers Receive Federal Prison SentencesRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker and District Attorney Scott Thomas announced today that two drug dealers from Pamlico County were sentenced in federal court last week. DON ELBERT LEWIS, 57 of Bayboro, NC and WILLIAM JERRY WARREN III, 24 of Grantsboro, NC were eachsentenced as a result of unrelated investigations carried out by the Pamlico County Sheriff’s Office.
According to Mr. Walker, “These prosecutions demonstrate our continued battle to rid communities from the scourge of drug traffickers who negatively impact the quality of life for law abiding citizens.”
On January 10, 2012 LEWIS was sentenced to fifteen years imprisonment followed by five years of supervised release after pleading guilty to conspiring to distribute and possess with the intent to distribute 280 grams or more of cocaine base (crack), and five kilograms or more of cocaine. According to the investigation, on several occasions deputies from the Pamlico County Sheriff’s Office utilized an informant to purchase cocaine base (crack) from LEWIS and others at his residence on Garrison Lane in Bayboro. Further investigation revealed that LEWIS allowed his residence to be used by prostitutes as well as by other drug dealers to process and sell narcotics in exchange for either drugs or proceeds from the prostitution and drug sales. The investigation revealed that in total, over 14 kilograms of cocaine and cocaine base (crack) were either processed or sold from LEWIS’ residence.
On January 11, 2013, WARREN was sentenced to 63 months imprisonment followed by 3 years of supervised release after pleading guilty to distributing cocaine base (crack) and to possessing a firearm after being convicted of a felony criminal offense. According to the investigation, deputies from the Pamlico County Sheriff’s Office utilized an informant to purchase crack from WARREN in Reelsboro, NC. At a later date, a concerned citizen gave a tip to a deputy of the Pamlico County Sheriff’s Office that WARREN was occupying a vehicle nearby and was in possession of a firearm. Upon being approached, WARREN exited the vehicle and attempted to leave the scene. After he was stopped, WARREN resisted a frisk by the sheriff’s deputy and during a struggle with the officer, kicked a .45 caliber handgun underneath the deputy’s patrol car. After WARREN was taken into custody, bystanders who observed the struggle informed the deputy that they had seen WARREN attempt to rid himself of the weapon during the struggle.
LEWIS and WARREN were also ordered to pay restitution to the Pamlico County Sheriff’s Office. LEWIS was ordered to pay $1,520.00 and WARREN was ordered to pay $250.00. If they are unable to pay immediately, they must participate in the Inmate Responsibility Program to work and pay the restitution while incarcerated.
District Attorney Thomas said, “This investigation is part of our ongoing efforts to fight illegal drug activity in our area. The Pamlico County Sheriff’s Department did a good job investigating this case and working with Prosecutor Gus Willis to achieve convictions and prison sentences. We will continue to pursue investigations and prosecutions to address drugs and other illegal activity.”
Special Assistant United States Attorney Augustus Willis represented the government in these cases. Mr. Willis is a prosecutor with the District 3-B District Attorney’s Office encompassing Carteret, Craven and Pamlico Counties. District Attorney Scott Thomas has assigned him to the United States Attorney’s Offices to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Willis’ position is funded through a grant provided by the Governor’s Crime Commission.
Owner of Kentucky Pain Clinics Arrested and Indicted for Prescription Drug and Money Laundering ConspiraciesRead the Press Release
LEXINGTON, KY - A federal indictment, unsealed today, accuses a pain clinic owner and his two businesses of illegally distributing prescription drugs in central and northern Kentucky.
Ernest William Singleton, 44, was arrested in his hometown of Springfield, KY., this morning on federal charges.
Singleton and his businesses, Double D Holdings, LLC, and S & R Medical Enterprises, LLC, which previously did business under the names Central Kentucky Bariatric and Pain Management (Georgetown, Ky.) and Grant County Wellness Clinic, (Dry Ridge, Ky.) are charged with conspiracy to distribute oxycodone and conspiracy to launder funds from October 2010 until January 2013.
In addition, the U.S. Government seeks forfeiture of farm land, vehicles, businesses, and other property that were purchased with illegal profits or used to facilitate the alleged crimes.
A federal grand jury in Lexington returned the sealed indictment on January 10.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Robert L. Corso, Special Agent in Charge, Drug Enforcement Administration, Christopher A. Henry, Special Agent in Charge of IRS, Criminal Investigation Division, Jack Conway, Kentucky Attorney General, and Rodney Brewer, Commissioner of Kentucky State Police, jointly announced the arrest and the charges.
The investigation was conducted by the DEA, the IRS’ Criminal Investigation Division, the Kentucky Attorney General’s Office and Kentucky State Police. Assistant U.S. Attorney Ron Walker represents the U.S. Attorney’s Office in this case.
“Illegal pill mills have fueled the prescription drug epidemic in Kentucky that now kills more people than traffic accidents,” General Conway said. “I appreciate the hard work of my Drug Branch Investigators, working in coordination with our state and federal law enforcement partners, in bringing this case forward.”
A date for Singleton to appear in Federal Court has not yet been set. If convicted he faces a maximum of 20 years in prison on each count. However, any sentence following a conviction would come after the Court considers the U.S. Sentencing Guidelines and the federal statutes.
The indictment of a person by a grand jury is an accusation only, and that person is presumed innocent unless proven guilty.
North Side Man Pleads Guilty to Federal Drug Law ViolationRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pa., pleaded guilty in federal court to a charge of violating federal narcotic laws, United States Attorney David J. Hickton announced today.
Jimmie McLaughlin, 36, pleaded guilty to one count before Senior United States District Judge Maurice B. Cohill.
In connection with the guilty plea, the court was advised that on or about July 8, 2011, in the Western District of Pennsylvania, McLaughlin possessed with intent to distribute between 80 and 100 grams of heroin.
Judge Cohill scheduled sentencing for May 15, 2013. The law provides for a total sentence of not less than 10 years and up to life in prison, a fine of $4,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Jonathan B. Ortiz is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Robinson Township Police conducted the investigation that led to the prosecution of Jimmie McLaughlin.
New York Woman Pleads Guilty to Casino ScamRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA - A 29-year old Jamaica, New York, resident entered a plea of guilty in United States District Court in Martinsburg after fraudulently obtaining cash at the Hollywood Casino in Charles Town, West Virginia.
United States Attorney William J. Ihlenfeld, II, announced that REBECCA HILL entered a plea of guilty to “Use of a Counterfeit Access Device” at the casino in Charles Town when HILL, in 2010, presented photographic identification along with a counterfeit credit card in order to obtain a cash advance of $1,000. As part of her plea, HILL is required to make restitution in the amount of $31,000 to the casino. HILL, who is on bond pending sentencing, faces up to 10 years imprisonment and a fine of $250,000.
The case was prosecuted by Assistant United States Attorney Thomas O. Mucklow and was investigated by the West Virginia State Police and United States Secret Service.
Mobridge Woman Indicted for EscapeRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mobridge, South Dakota, woman has been indicted by a federal grand jury for leaving the Community Alternatives of the Black Hills on December 15, 2012, and not returning.
Camille Touche, age 26, was indicted by a federal grand jury on January 8, 2013, for Escape from Custody. Touche 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 5 years of imprisonment and a $250,000 fine. The charge is merely an accusation, and Touche is presumed innocent until and unless proven guilty.
The investigation is being conducted by the United States Marshal’s Service. Assistant United States Attorney Eric Kelderman is prosecuting the case. Touche was remanded to the custody of the United States Marshal. A trial date has not yet been set.
Minneapolis Man Pleads Guilty to Bank RobberyRead the Press Release
MINNEAPOLIS—Late last week in federal court, a 51-year-old Minneapolis man pleaded guilty to robbing the TCF Bank on West Lake Street in Minneapolis. He also admitted robbing three other banks. On January 11, 2013, Phillip Leo Nietz specifically pleaded guilty to one count of bank robbery. Nietz, who was indicted on October 10, 2012, entered his plea before United States District Court Judge Patrick J. Schiltz.
In his plea agreement, Nietz admitted that on August 22, 2012, he walked into the West Lake Street branch of TCF Bank and gave a teller a note demanding money. He took approximately $3,794, placed it in a black bag, and left the premises on foot. Nietz also admitted robbing three other banks in the same manner: a U.S. Bank in Roseville on August 14, 2012 ($1,047); a Wells Fargo in St. Paul on August 28, 2012 ($7,389); and a U.S. Bank in St. Paul on September 13, 2012 ($1,045).
For his crime, Nietz faces a potential maximum penalty of 20 years in prison. Judge Schiltz 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 Thomas Calhoun-Lopez.Mesquite Man Sentenced to 40 Months in Federal Prison for Possessing Child PornographyRead the Press Release
Defendant Had More than 3000 Images and Eight Videos of Child Porn
DALLAS — Christopher Vernon George, 41, of Mesquite, Texas, was sentenced this morning by U.S. District Judge David C. Godbey to 40 months in federal prison and a 10-year term of supervised release, following his guilty plea in October 2012 to an Information charging one count of possession of child pornography. George was ordered to surrender to the Bureau of Prisons on March 4, 2013.
During an investigation involving the website, “liberalmorality.com,” which offered sexually explicit images of videos of minor children for download, investigators were able to identify an IP address associated with George. A state search warrant was executed at George’s residence, which at the time was in Garland, Texas, by agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and officers of the Garland Police Department. Investigators seized George’s computer and external storage media.
George admitted that he had been downloading and viewing child pornography for 15 years. A forensic analysis of the items seized identified more than 3000 images and eight videos of child pornography that George had downloaded from the Internet.
This matter was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc For more information about internet safety education, please visit www.justice.gov/psc and click on the tab "resources."
ICE HSI and the Garland Police Department investigated. Assistant U.S. Attorney Camille Sparks was in charge of the prosecution.
Manderson Man Indicted for Stealing Pickup TruckRead the Press Release
United States Attorney Brendan V. Johnson announced that a Manderson man has been indicted by a federal grand jury for allegedly stealing a 2004 Chevrolet Silverado pickup truck from the Pine Ridge area on January 13, 2012, and transporting it across the state line.
Clayton Fire Thunder, age 28, was indicted by a federal grand jury on March 20, 2012, for Larceny and Interstate Transportation of Stolen Motor Vehicle. Fire Thunder 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 of imprisonment and a $250,000 fine.
The charges are merely accusations, and Fire Thunder 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 Eric Kelderman is prosecuting the case. Fire Thunder was remanded to the custody of the United States Marshal. A trial date has been set for March 19, 2013.
Los Angeles Check Cashing Store, Its Head Manager and Compliance Officer Sentenced for Violating Anti-money Laundering LawsRead the Press Release
WASHINGTON – A Los Angeles check cashing store, its head manager and its designated anti-money laundering compliance officer were sentenced today in the Central District of California for failing to follow reporting and anti-money laundering requirements for over $8 million in transactions in violation of the Bank Secrecy Act (BSA), announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney for the Central District of California André Birotte Jr; Assistant Director in Charge Bill L. Lewis of the FBI Los Angeles Division; Chief of the Internal Revenue Service Criminal Investigation (IRS-CI) Richard Weber; and Glenn R. Ferry, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Los Angeles region.
G&A Check Cashing, its manager, Karen Gasparian, and its compliance officer, Humberto Sanchez, were sentenced today by Judge John F. Walter in the Central District of California. Judge Walter sentenced Gasparian to serve 60 months in prison and two years of supervised release. Sanchez was sentenced to serve eight months in prison and two years of supervised release. And G&A was ordered to pay a fine of $962,932 and sentenced to two years probation. In addition, Gasparian and G&A were ordered to forfeit $240,733 related to the funds going through G&A for which currency transaction reports (CTRs) should have been filed.
“Karen Gasparian, Humberto Sanchez and their company G&A Check Cashing purposefully thwarted the Bank Secrecy Act, making it easier for others to use G&A to commit illegal activity,” said Assistant Attorney General Breuer. “They knew they were required to report transactions over $10,000, but deliberately failed to do so. As this case shows, check cashing businesses must adhere to our anti-money laundering rules, or else pay the consequences.”
On Oct. 2, 2012, G&A, a financial institution located in Los Angeles, pleaded guilty to one count of conspiring to fail to file CTRs and one count of failing to have an effective anti-money laundering program. On Sept. 20, 2012, Gasparian, 31, of Canyon Country, Calif., pleaded guilty to the same charges. On Oct. 2, 2012, Sanchez, 51, of Alhambra, Calif., pleaded guilty to one count of failing to have an effective anti-money laundering program (AML).
The BSA is a set of laws and regulations enacted by Congress to address an increase in criminal money laundering through financial institutions, which includes check cashing businesses. Check cashers enable people to cash checks without having to go to a bank or maintain a bank account. A check casher will typically charge a fee for this service.
Under the BSA, financial institutions, including check cashers, are required to file a CTR with the Department of Treasury for any transaction involving more than $10,000 in currency. As part of the CTR, the check casher is required to verify and accurately record the name and address of the individual who conducted the currency transaction, the individual on whose behalf the transaction was conducted, as well as the amount and date of the transaction. CTRs are important law enforcement tools for uncovering criminal activity.
The BSA also requires financial institutions, including check cashing businesses, to maintain an effective AML program. The purpose of an AML program is to effectively detect and prevent attempts to facilitate money laundering. Check-cashing businesses are therefore required to have written policies and procedures regarding CTR filings, records maintenance and responses to law enforcement.
In failing to have an effective anti-money laundering program, G&A, Gasparian and Sanchez failed to, among other things, create or retain required records, verify customer identification and file required reports such as CTRs. As a result, G&A and Gasparian engaged in multiple transactions involving $8,024,446, in which required CTRs were not filed.
As court documents filed in this case indicate, check-cashing businesses are a common venue for individuals who want to anonymously cash large numbers of checks to facilitate fraud and money laundering schemes, precisely because they often fail to file required reports and to have effective anti-money laundering programs. According to the indictments, the use of check cashers to launder money is particularly prevalent in the area of health care fraud, where fraudulent health care businesses commonly convert the proceeds of their fraud into cash by presenting checks to check cashers who they know will not ask for proof of the payee’s identity and will either not file CTRs or file false CTRs.
“IRS-CI will take all necessary steps to identify, investigate and prosecute those who attempt to avoid their reporting obligations under the law,” said IRS-CI Chief Weber. “This joint effort continues to demonstrate our efforts to ensure that the financial services industry will not be used for personal financial gain and will be operated in a fair and honest manner to promote the public interest.”
“Check cashing businesses and other financial institutions that enable healthcare fraud will pay a heavy price,” said HHS-OIG Special Agent in Charge Ferry. “We will use sophisticated computer analytics as well as traditional investigative techniques to bring these criminals to justice.”
On Nov. 7, 2012, Aaron Krkasharyan, 48, of Los Angeles, pleaded guilty in a related case for making false statements to federal law enforcement officials investigating BSA violations at G&A. On Jan. 7, 2013, Judge Walter sentenced Krkasharyan to three years probation, which included a six-month term in a residential reentry center, and a $10,000 fine.The indictment filed in this case was one of four indictments, unsealed on June 14, 2012, that charged several individuals and check cashing businesses in Los Angeles, Brooklyn, N.Y., and Philadelphia with failing to file CTRs or falsely filing CTRs as well as failing to have effective AML programs.
In another Los Angeles case included in this widespread prosecution, AAA Cash Advance and its manager, Diana Brigitt, pleaded guilty on Sept. 19, 2012, in the Central District of California to various BSA violations. Brigitt pleaded guilty to eight counts of failing to file CTRs and one count of failing to maintain an effective anti-money laundering program. AAA pleaded guilty to one count of failing to maintain an effective AML program. On Oct. 15, 2012, AAA was sentenced to a statutory maximum term of five years probation and was also ordered to pay a fine. At sentencing, AAA also agreed to shut down its business permanently once its fine was paid. At sentencing, Brigitt faces a statutory maximum sentence of 45 years in prison and a fine of $2.25 million.
The cases announced today are being prosecuted by Money Laundering and Bank Integrity Unit Trial Attorneys Kevin Mosley and Matthew Klecka of the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS), AFMLS Forfeiture Unit Acting Assistant Deputy Chief Jeannette Gunderson and Trial Attorney Anand Sithian and Assistant U.S. Attorney David L. Kirman of the Central District of California. The department acknowledges the invaluable assistance of the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN).
The Money Laundering and Bank Integrity Unit investigates and prosecutes complex, multi-district and international criminal cases involving financial institutions and individuals who violate the money laundering statutes, the Bank Secrecy Act and other related statutes. The unit’s prosecutions generally focus on three types of violators: financial institutions, including their officers, managers and employees, whose actions threaten the integrity of the individual institution or the wider financial system; professional money launderers and gatekeepers who provide their services to serious criminal organizations; and individuals and entities engaged in using the latest and most sophisticated money laundering techniques and tools.
The cases are being investigated by agents from the FBI, IRS-CI and HHS-OIG.
Los Angeles Check Cashing Store, Head Manager and Compliance Officer Sentenced for Violating Anti-Money Laundering LawsRead the Press Release
Sentences Handed Down in Enforcement Initiative Aimed at Check Cashers that Violated the Bank Secrecy Act
LOS ANGELES – A Los Angeles check cashing store, its head manager and its designated anti-money laundering compliance officer were sentenced today for failing to follow federal reporting and anti-money laundering requirements in relation to more than $8 million in transactions.
G&A Check Cashing, a business located in the Westlake section of Los Angeles; its manager, Karen Gasparian; and its compliance officer, Humberto Sanchez, were sentenced today by United States District Judge John F. Walter for violating the Bank Secrecy Act (BSA).
Judge Walter sentenced Gasparian, 31, of Canyon Country, to five years in federal prison. In sentencing Gasparian, Judge Walter rejected the defendant’s arguments that he had simply failed to comply with complicated regulatory schemes. “It’s obvious he knew exactly what he was doing – laundering money,” Judge Walter said.
Sanchez, 51, of Alhambra, was sentenced to eight months in prison. And G&A was ordered to pay a fine of $962,932 as part of two-year period of probation. In addition, Gasparian and G&A were ordered to forfeit $240,733, which represents the profits they earned on funds going through G&A for which currency transaction reports (CTRs) were not filed.
G&A pleaded guilty in October to one count of conspiring to fail to file CTRs on transand one count of failing to have an effective anti-money laundering program. Gasparian pleaded guilty in September to the same charges. Sanchez pleaded guilty in October to one count of failing to have an effective anti-money laundering program.
The BSA is a set of laws and regulations enacted by Congress to address an increase in criminal money laundering through financial institutions, which includes check cashing businesses. Check cashers enable people to cash checks without having to go to a bank or maintain a bank account.
Under the BSA, financial institutions, including check cashers, are required to file a CTR with the Department of Treasury for any transaction involving more than $10,000 in currency. As part of the CTR, the check casher is required to verify and accurately record the name and address of the individual who conducted the currency transaction, the individual on whose behalf the transaction was conducted, as well as the amount and date of the transaction. CTRs are important law enforcement tools for uncovering criminal activity.
The BSA also requires financial institutions, including check cashing businesses, to maintain an effective anti-money laundering program. Check-cashing businesses are required to have written policies and procedures regarding CTR filings, records maintenance and responses to law enforcement.
G&A, Gasparian and Sanchez failed to, among other things, create or retain required records, verify customer identification and file required reports such as CTRs. As a result, G&A and Gasparian engaged in multiple transactions involving $8,024,446, in which required CTRs were not filed.
According to court documents, check-cashing businesses are a common venue for individuals who want to anonymously cash large numbers of checks to facilitate fraud and money laundering schemes, precisely because they often fail to file required reports and to have effective anti-money laundering programs. The use of check cashers to launder money is particularly prevalent in the area of health care fraud, where fraudulent health care businesses commonly convert the proceeds of their fraud into cash by presenting checks to check cashers who they know will not ask for proof of the identity and will either not file CTRs or file false CTRs, according to the documents.
Aaron Krkasharyan, 48, of Los Angeles, pleaded guilty last year in a related case for making false statements to federal law enforcement officials investigating BSA violations at G&A. Last Monday, Judge Walter sentenced Krkasharyan to three years probation, which included a six-month term in a residential reentry center, and ordered him to pay a $10,000 fine.
The indictment filed in the G&A case was one of four indictments unsealed on June 14, 2012, that charged several individuals and check cashing businesses in Los Angeles, Brooklyn and Philadelphia with failing to file CTRs or falsely filing CTRs, as well as failing to have effective AML programs.
In another Los Angeles case included in this prosecution, AAA Cash Advance and its manager, Diana Brigitt, pleaded guilty in federal court in Los Angeles last September to various BSA violations. Brigitt pleaded guilty to eight counts of failing to file CTRs and one count of failing to maintain an effective anti-money laundering program. AAA pleaded guilty to one count of failing to maintain an effective anti-money laundering program. AAA, which agreed to shut down, was sentenced in October to a statutory maximum term of five years probation and was also ordered to pay a fine. At sentencing later this year, Brigitt faces a statutory maximum sentence of 45 years in prison and a fine of $2.25 million.
The G&A case was prosecuted by the United States Attorney’s Office in Los Angeles and the Money Laundering and Bank Integrity Unit of the Justice Department’s Asset Forfeiture and Money Laundering Section.
The case was investigated by the Federal Bureau of Investigation, IRS Criminal Investigation and the U.S. Department of Health and Human Services’ Office of Inspector General (Los Angeles region). The Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) provided substantial assistance.
Release No. 13-008
Leader of Azusa Street Gang Involved in Drug Trafficking and Hate Crimes Targeting African-Americans Sentenced to Nearly 20 YearsRead the Press Release
LOS ANGELES – A “keyholder” who oversaw the criminal activities of the Azusa 13 street gang and its long-running plot to violate the civil rights of African-Americans in the City of Azusa was sentenced late this afternoon to 235 months in federal prison
Santiago Rios, also known as “Chico,” 48, was sentenced this afternoon by United States District Judge Gary A. Feess.
Rios was the lead defendant in a federal racketeering indictment that targeted the Azusa 13 criminal enterprise. In June 2011, a federal grand jury returned a 24-count indictment that charged a total of 51 defendants with a host of crimes, including conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act (RICO) and conspiracy to violate the civil rights of African-Americans. Rios, who was the keyholder – or ultimate leader – of the gang in 2008 and 2009, pleaded guilty in May 2012 to both conspiracy charges.
“The sentencing of the gang’s ‘keyholder’ is another giant step forward for the residents of an area who lived for too long under the specter of gang violence and racial animosity,” said United States Attorney André Birotte Jr. “Together with the Azusa Police Department and our partners in federal law enforcement, we took action to protect the civil rights of all the residents of Asuza, and we will continue to aggressively defend those rights, and those residents, from harm.”
In the early 1990s, the Azusa 13 gang adopted a racist principle “that members of the gang will harass and use violence to drive African-Americans out of the City of Azusa and would use violence in order to prevent African-Americans from moving into the City,” according to the indictment. When he pleaded guilty, Rios admitted that the gang had the goal of the cleansing Azusa of African-Americans. Rios also admitted that, in order to drive African-Americans out of the city, he and other members of the gang threatened, intimidated and attacked African-Americans at their residences, on the streets, at convenience stores and elsewhere, because of their race.
Rios confirmed in court that members of the Azusa 13 gang “tagged” racial slurs, including the “n-word,” on street signs, walls and buildings to intimidate law-abiding African-Americans in Azusa. In relation to the gang’s goal of cleansing the City of Azusa of African-Americans, Rios said that newly recruited members of the gang, often using dangerous weapons, participated in attacks on African-Americans as a way of proving themselves as members of the gang and to enhance their position in the gang.
Six of the defendants named in the indictment, including Rios, were charged in and pleaded guilty to the civil rights conspiracy, which alleged a series of incidents in which African-Americans were harassed through racist graffiti and subjected to attacks that included beatings and robberies. The racist incidents alleged in the indictment spanned a period from 1992 until May 2010, when an African-American high school student was beaten as he walked home from school.
The other five defendants who pleaded guilty to the civil rights conspiracy and admitted the gang’s racist conduct were: George Salazar, also known as “Danger,” 30, who also served as a “keyholder,” was sentenced by Judge Feess in August 2012 to 174 months in prison;
Josue Alfaro, also known as “Negro,” 40, who is alleged to have also served as a “keyholder,” is scheduled to be sentenced by Judge Feess on February 25, at which time he faces a statutory maximum sentence of 30 years;
Raul Aguirre, also known as “Solo,” 36, was sentenced by Judge Feess in August 2012 to 102 months in prison;
Marty Michaels, also known as “Casper,” 32, who is scheduled to be sentenced on February 4, at which time he faces a sentence of up to 30 years; and
Manuel Jimenez, 21, who was sentenced this afternoon to 78 months in prison.
Of the 51 members and associates of the Azusa 13 gang charged in the indictment, 49 defendants have pleaded guilty to racketeering and narcotics charges (with six of the 49 also pleading guilty to the civil rights charge). There are two fugitives who are charged with being narcotics traffickers, but they are not alleged to have been members of the gang. In addition to the defendants who pleaded guilty in the civil rights conspiracy, several members of the Azusa 13 gang acknowledged participating in the gang’s racist conduct, including:
Anthony Moreno, also known as “Flaco,” 42, who received a sentence of 210 months from Judge Fees on November 19; and
Louie Rios, who is Santiago Rios’ son and is also known as “Lil’ Chico,” 22, who was sentenced today to 10 years in prison.
“This case stands out as a huge victory for the community, the victims that the gang targeted, and the Azusa Police Department,” said Azusa Police Chief Sam Gonzalez. “The investigation and today’s sentencings send a loud and clear message that hate and gang crimes will not be tolerated, and will be prosecuted to the fullest extent of the law. The Azusa Police Department remains committed to ensuring that all people are safe in the community, and we will continue to pursue all investigative avenues to make that a certainty. This case is an excellent example of how local and federal agencies can work together for the betterment of society.”
In addition to the RICO charge and the civil rights conspiracy count, the indictment alleges a long-running conspiracy to distribute narcotics, specifically heroin, methamphetamine and cocaine. The Azusa 13 gang developed a “business plan” that outlined methods by which the gang would control the narcotics business in Azusa, according to court documents. Under the business plan, members of Azusa 13 sought to “monopolize the entire drug market in the city of Azusa” through several means, including maintaining “top of the line artillery” and being prepared to kidnap relatives of wayward drug dealers.
Drug Enforcement Administration Special Agent in Charge Anthony D. Williams stated: “Today’s sentencing is an affirmative step to reducing the impact of gang violence and illegal drugs in the Azusa area. This task force investigation exemplifies the partnership between local, state and federal agencies in combating violent gang activities in our communities.”
As part of its narcotics operation, the gang extorted payments from street-level drug dealers in exchange for authorization to conduct business in Azusa 13 territory. Rios admitted that the Azusa 13 gang controlled the drug trafficking activity that occurred within the City of Azusa, and that members of the Azusa 13 gang would permit narcotics traffickers to distribute narcotics in exchange for a percentage of any narcotics proceeds that were generated in the gang’s territory. These payments of drug proceeds – known as “rent” or “tax” – were funneled to members of the Mexican Mafia who exerted control over the gang. According to Rios, members of the Azusa 13 gang would not permit a narcotics trafficker to distribute narcotics in the City of Azusa if that individual did not give a portion of their narcotics distribution proceeds to the gang.
N. Dawn Mertz, the Acting Special Agent in Charge of the Los Angeles Field Office of IRS Criminal Investigation (CI), commented: “The flow of money through the Azuza 13 Gang supported the gang structure and allowed it to thrive. IRS CI targeted the profit and financial gains by following the payments extorted from street-level drug dealers, payments known as “rent” or “tax.” IRS CI will continue to contribute our financial expertise to the investigation of gang organizations in an effort to bring their members to justice.”
The case against Azusa 13 is the result of an investigation that was conducted by the Los Angeles HIDTA Task Force, a federally funded group made up of federal and local law enforcement agencies, including the DEA and IRS Criminal Investigation. The Azusa Police Department worked in conjunction with the Task Force during this investigation, which started in early 2008.
While several federal indictments targeting Los Angeles-area gangs have made allegations of crimes against African-Americans, the case against Azusa 13 is the first in the history of the Department of Justice to use federal civil rights statutes in conjunction with federal racketeering and narcotics laws to address racist gang-related activity, and to successfully dismantle a violent criminal organization.
Release No. 13-007
Las Vegas Lawyer Pleads Guilty to Mortgage Fraud CrimesRead the Press Release
Las Vegas, Nev. – Las Vegas lawyer Gerry Zobrist pleaded guilty today to federal felony conspiracy and fraud charges for his involvement in a mortgage fraud scheme that caused federally insured financial institutions to suffer losses of more than $30 million, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
“The U.S. Attorney’s Office in Nevada continues to work with the FBI and other federal and state law enforcement partners, to investigate and prosecute mortgage fraud crime,” said U.S. Attorney Bogden. “Over the last several years, almost 200 persons have been charged with federal mortgage fraud crimes in Nevada, and most of those have been convicted and are serving federal prison sentences.”
Zobrist, 43, of Las Vegas, pleaded guilty before U.S. District Judge James C. Mahan to one count of conspiracy to commit bank fraud and wire fraud, and is scheduled to be sentenced on April 15, 2013, at 10:00 a.m. Zobrist faces up to 30 years in prison and a $1 million fine.
According to the plea agreement, from about June 2006 to May 2008, Zobrist and unnamed coconspirators solicited and paid persons with good credit ratings to serve as straw buyers to purchase homes in the Las Vegas area on behalf of Zobrist and the coconspirators. Zobrist and the coconspirators made offers to purchase the homes, and the sellers agreed to disburse part of the sales proceeds to real estate companies, coconspirators and third party entities controlled by Zobrist and the coconspirators under the pretense that the proceeds constituted attorney’s fees, marketing fees, commissions, and other fees. Zobrist and the coconspirators caused to be completed and submitted mortgage loan applications and supporting documents in the name of the straw buyers, which contained false and fraudulent information concerning the straw buyers’ income, assets, liabilities, intended occupancy status, and other things. Zobrist and the coconspirators also caused to be submitted to the lenders documents containing false information about the source of the down payments, value of the homes, and intended disbursements to Zobrist, the coconspirators, and straw buyers. Using this fraudulent scheme, Zobrist and the coconspirators purchased 144 homes and obtained mortgage loans for more than $53 million. Zobrist and the coconspirators defaulted on the mortgage loans causing the homes to go into foreclosure, and caused the financial institutions to suffer losses of at least $30 million.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys Daniel R. Schiess and Sarah E. Griswold.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Justice Department Settles Lawsuit Alleging Interference with <br /> Persons Exercising Right to Seek or Provide Reproductive <br /> Health CareRead the Press Release
WASHINGTON – The Department of Justice today settled a civil complaint against Richard A. Retta, of Rockville, Md, in the U.S. District Court for the District of Columbia, for violations of the Freedom of Access to Clinic Entrances (FACE) Act. The settlement permanently enjoins Retta from going inside the gated area in front of the entrance to the Planned Parenthood of Metropolitan Washington facility (PPMW) in Washington, D.C., and, during certain hours, from going within an additional 18.5 feet by six feet “buffer zone” directly outside the PPMW gate. Retta is further enjoined from violating, or directing or instructing others to violate, the FACE Act.
The complaint filed by the United States alleged that, on Jan. 8, 2011, inside the gated area in front of PPMW, Retta physically obstructed a patient attempting to enter PPMW and interfered with the rights of two volunteer escorts who were assisting the patient. The FACE Act prohibits the physical obstruction of any person providing or obtaining reproductive health services with the intent to intimidate or interfere with that person.
Early in the case, the court rejected the defendant’s motion to dismiss the lawsuit and held that, under FACE, the complaint need only allege that the defendant believed the individuals to be obtaining or providing reproductive health services, not that they were actually seeking or providing such services. This important ruling protects patient privacy, patients’ companions and volunteer escorts.
“While people have a First Amendment right to communicate their views and offer information, they do not have the right to prevent access to health care facilities,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “Individuals who seek to obtain or provide reproductive health services should be able to do so without physical interference by those who disagree with them.”This civil action was filed by the Civil Rights Division Special Litigation Section Deputy Chief Julie Abbate and Trial Attorneys Aaron Zisser and Michelle Leung.
Justice Department Obtains Judgment Against Maine Landlord for Sexually Harassing TenantsRead the Press Release
WASHINGTON – The Justice Department today announced that property manager Rudy Ferrante agreed to a $15,000 civil judgment against him, to resolve allegations that he sexually harassed female tenants in Portland, Maine. The department’s complaint alleged that Ferrante subjected his female tenants to unwanted sexual comments and touching, granted tangible housing benefits in exchange for sexual favors and took adverse actions against female tenants when they refused his sexual advances.The consent order, which is subject to approval by the U.S. District Court for the District of Maine, imposes a $15,000 civil penalty against Ferrante. In addition, the consent order enjoins him from further acts of discrimination, requires him to undergo fair housing training and requires that he provide a copy of the order to his employees and any property owner on whose behalf he manages units.
“The women involved in this case were subjected to intimidating and severe acts of sexual harassment in their homes, where they have a right to feel safe,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “This order sends the message that the Civil Rights Division does not tolerate such conduct and will enforce the right to equal access to housing when it learns of violations of the Fair Housing Act.”
The department began investigating Ferrante after Pine Tree Legal Assistance, a Portland-based legal aid organization, notified the department of sexual harassment complaints it had received about Ferrante.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. Individuals who believe that they may have been victims of housing discrimination should call the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743, email [email protected] or contact the U.S. Department of Housing and Urban Development at 1-800-669-9777.
Fair housing enforcement is a priority of the Civil Rights Division. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
Jerseyville Man Sentenced for Making False Bank Entry to Conceal Cash TheftsRead the Press Release
A Jerseyville man, convicted of Making a False Bank Entry, was sentenced in federal court on January 14, 2013, to 30 days of imprisonment, 11 months of home confinement with electronic monitoring, and 3 years of supervised release, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
At his plea on August 22, 2011, Robert J. Tonsor, 29, of Jerseyville, IL, admitted that while employed by the Carrollton Bank he had made false entries on the bank’s Alton Drive Up Vault Balance Sheet. Tonsor admitted making the false entries in order to conceal his theft of funds and deceive the officers of the Carrollton Bank by making the records falsely indicate that the bank’s drive up window vault was properly balanced, when Tonsor knew that there were shortages of approximately $105,000 in United States currency.
As part of the plea agreement with the government, Tonsor had already paid $105,000 in restitution to the Bank of Carrollton. He was also ordered to pay a special assessment of $100.00.
The investigation was conducted by the Federal Deposit Insurance Corporation - Office of Inspector General and is being prosecuted by Assistant United States Attorney Ranley R. Killian.
International Hedge Fund Founder Sentenced to 12 Years in Prison for Investment FraudRead the Press Release
SAN JOSE, Calif. – An international hedge fund founder was sentenced today to 12 years in prison for wire fraud arising out of a white collar investment fraud scheme that defrauded multiple investors out of millions of dollars, United States Attorney Melinda Haag announced.
Following a three week trial, a federal jury on June 20, 2012, convicted Albert Ke-Jeng Hu, 51, formerly of Fremont, Calif., and Hong Kong, of seven counts of wire fraud in violation of Title 18, United States Code, Section 1343. Evidence at trial showed that Hu carried out an investment fraud scheme from 2002 to 2008 that defrauded multiple investors of millions of dollars. Hu founded and operated hedge funds under the names Asenqua Beta Fund and Fireside LS Fund out of locations in San Francisco, Sunnyvale and Singapore. Hu lied to investors by telling them that he had more than $200 million in his hedge funds and that they would receive rates of return as high as 20 to 30 percent a year. Hu also lied about entities that were supposedly affiliated with his hedge funds, such as a prominent law firm, an auditing firm, a hedge fund administrator and a chief financial officer. In reality, none of those entities ever had any connection with Hu’s hedge funds. Evidence at trial showed that Hu targeted prominent members of the Chinese-American business community in Silicon Valley as part of his investment fraud scheme. Ultimately, Hu invested virtually none of his investors’ money, instead diverting it to pay his own personal expenses as well as prior investors and others.
In sentencing Hu, U.S. District Court Judge Ronald M. Whyte emphasized the sophistication of Hu’s fraudulent scheme that “took a lot of money from a group of people and had a major impact on their lives." In imposing sentence, Judge Whyte also stressed the need “to send a message that this type of fraud should not be tolerated.”
Hu has been in custody since his arrest in Hong Kong on March 17, 2009. After the United States successfully obtained Hu’s extradition from Hong Kong, former United States Magistrate Judge Patricia V. Trumbull in 2009 granted the United States motion to have Hu detained pending trial as a flight risk. Judge Whyte also sentenced the defendant to three-year period of supervised release and ordered a hearing on restitution to take place on March 18, 2013.
Assistant United States Attorneys Joseph Fazioli and Timothy Lucey prosecuted the case with the assistance of Legal Assistants Nina Burney and Kamille Singh and Paralegal Specialist Lakisha Holliman. The prosecution is the result of a multi-year investigation by the Federal Bureau of Investigation. The United States Attorney’s Office recognizes the substantial and valuable assistance in this matter of the San Francisco Regional Office of the Securities and Exchange Commission and the Office of International Affairs of the Department of Justice.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. 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. For more information about the task force visit: www.stopfraud.gov.
(Albert Hu Indictment )
Hartford Crack Dealer Sentenced to More Than Seven Years in Federal PrisonRead the Press Release
January 14, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that JUAN CARTAGENA, 28, of Hartford, was sentenced today by Chief United States District Judge Alvin W. Thompson in Hartford to 92 months of imprisonment for distributing crack cocaine in Hartford. CARTAGENA also was ordered to serve five years of supervised release and perform 250 hours of community service after his release from prison.
This matter stems from “Operation Vinefield,” a joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force targeting narcotics trafficking and gang violence in Hartford’s North End. As a result of the nine-month investigation, 38 individuals were charged with various offenses related to the distribution of crack cocaine and the unlawful possession and dealing of firearms in and around Hartford.
According to court documents and statements made in court, CARTAGENA and others conspired to distribute crack cocaine in Hartford’s lower Vine Street area, as well as in other locations in Hartford and East Hartford.
CARTAGENA, whose criminal history includes multiple felony convictions, has been detained since his arrest on March 9, 2012. On August 29, 2012, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 28 grams or more of cocaine base (“crack cocaine”).
This matter has been investigated by the FBI’s Northern Connecticut Violent Crimes Task Force, the Connecticut State Police, the Hartford Police Department, and the Connecticut Department of Correction. The case is being prosecuted by Assistant United States Attorney Brian P. Leaming.
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(203) 821-3722 [email protected]Greenville Man SentencedRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that in federal court on Friday, January 11, 2013, United States District Judge Louise W. Flanagan sentenced DALE CABINESS, 55,of Greenville,North Carolina, to 188 months imprisonment followed by 6 years supervised release.
A Federal Grand Jury returned a Criminal Indictment on March 14, 2012, charging CABINESS with violations of federal narcotics laws. CABINESS entered a guilty plea on August 14, 2012, to the distribution of quantities of heroin.
According to evidence presented in Court, the Greenville Regional Drug Task Force used a confidential informant to purchase heroin from CABINESS four times between December 1, 2011, and February 23, 2012. The investigation revealed that CABINESS was responsible for the distribution of 840 grams of heroin between September 2011 and April 2012.
CABINESS received an enhanced sentenced based on his status as a Career Offender.
Investigation of this case was conducted by the Greenville Regional Drug Task Force consisting of the Greenville Police Department, Pitt County Sheriff’s Office, Farmville Police Department, North Carolina State Bureau of Investigation, and the Drug Enforcement Administration. The prosecution was handled by Special Assistant United States Attorneys Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Clark Everett has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
Garland, Texas, Man Sentenced to More Than Five Years in Federal Prison on Bank Fraud and Aggravated Identity Theft ConvictionsRead the Press Release
DALLAS — Kevin Dwayne Williams, 43, of Garland, Texas, was sentenced Friday afternoon by Chief U.S. District Judge Sidney A. Fitzwater to 61 months in federal prison following his guilty plea in September 2012 to one count of bank fraud and one count of aggravated identity theft, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. In addition, Judge Fitzwater ordered that Williams pay approximately $2,500 in restitution.
In a superseding indictment returned in May 2012, a federal grand jury in Dallas charged Williams with three counts of possession of stolen mail, two counts of bank fraud and two counts of aggravated identity theft. At sentencing, the remaining five counts of the indictment, to which Williams did not plead guilty, were dismissed.
Williams pleaded guilty to Counts Four and Five of the Indictment which alleged that in January 2012, Williams either burglarized victim “E.P.’s” residence, or obtained items that had been stolen from E.P.’s residence, including his birth certificate and other documents containing personal information, such as Social Security number and date of birth. In fact, Count Four of the indictment alleged that Williams stole mail from several residential mailboxes in and around Dallas, including Garland, Mesquite and Rowlett, Texas, often stealing blank check books as well as credit card offers, which included blank credit card convenience checks.
According to the factual resume filed in the case, on January 5, 2012, Williams, falsely representing himself as E.P., opened a checking account at First National Bank/First Convenience Bank by using a temporary driver’s license and a Social Security card in the name of E.P. To fund the account, he gave bank officials an $800 Discover Card check made payable to E.P. The following day, again representing himself as E.P., Williams presented the teller a $225 check, drawn on another bank and made payable to E.P. Williams presented the teller a temporary driver’s license and Social Security card in the name of E.P. Relying on Williams’ false representations that he was E.P., and the fraudulent documents he presented, the teller cashed the check per Williams’ instructions.
The case was investigated by the U.S. Postal Inspection Service and the Garland Police Department. Assistant U.S. Attorney Aaron Wiley was in charge of the prosecution.
Four Defendants in Aryan Knights Investigation Plead Guilty to Conspiring to Distribute MethRead the Press Release
BOISE – Lisa Rochel Samayoa, 45, of Boise, Darin Scott Melton, 44, of Twin Falls, Idaho, Nina Ann Lucas, 32, of Pocatello, Idaho, and Omar Riveroll-Hernandez, 32, of Long Beach, California, pleaded guilty today in United States District Court to conspiring together to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced.
A federal grand jury indicted the defendants on September 12, 2012. The indictment and thirteen others were the result of a long-term investigation by the Treasure Valley Metro Violent Crimes Task Force. The investigation focused on illegal drug distribution by the “Aryan Knights,” a gang active in prison and on the streets throughout Idaho. Through the investigation, law enforcement agents identified Aryan Knights gang members who were trafficking methamphetamine, as well as associates of the gang who were the source of that methamphetamine.
The charge of conspiracy to distribute methamphetamine is punishable by up to life imprisonment, a maximum fine of $10 million, and a minimum term of five years of supervised release.
The defendants are scheduled to be sentenced on May 6, 2013, by U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
"Methamphetamine is a dangerous and addictive drug that destroys lives and harms Idaho communities," said Olson. "These four defendants face severe consequences for choosing to traffic methamphetamine for personal profit. This office and federal, state and local law enforcement partners will continue to aggressively investigate and prosecute drug traffickers." Olson said that her office had a strong record of prosecuting methamphetamine cases in 2012, with 73 defendants sentenced in federal court in Idaho for methamphetamine distribution crimes.
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 Aryan Knights cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Fort Thompson Man Guilty of Abusive Sexual ContactRead the Press Release
US Attorney Brendan V. Johnson announced that Jarrod Johnson, age 41, of Fort Thompson, appeared before US District Judge Roberto A. Lange on January 10, 2013, and pled guilty to the Superseding Information that charged him with Abusive Sexual Contact. The maximum penalty upon conviction is 3 years of imprisonment, a $250,000 fine, or both.
The charge stems from an incident when Johnson engaged in and attempted to engage in sexual contact with the victim, who at that time was incapable of appraising the nature of the sexual contact.
The investigation was conducted by the Bureau of Indian Affairs. Assistant US Attorney Meghan N. Dilges is prosecuting the case. Johnson was released pending sentencing. A sentencing date has been set for March 25, 13.