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14 January 2013
Fort Myers Man Sentenced to 10 Years in Prison for Distributing Child PornographyRead the Press Release
Fort Myers, Florida - United States Attorney Robert E. O'Neill announces that Edwin Carroll Snyder (39, Fort Myers) was sentenced today to 10 years in federal prison for distributing child pornography.
According to court documents, in March 2012, Snyder distributed twenty-five files of child pornography from his computer through the use of a peer-to-peer file sharing program. Snyder distributed these files to an undercover detective with the New Zealand Police. In April 2012, a search warrant was executed at Snyder’s residence in Fort Myers, Florida, during which he was found to possess in excess of 1500 images and 80 videos of child pornography. Snyder admitted to law enforcement agents that he had been seeking and downloading images and videos of child pornography for approximately five years.
This case was investigated by the Federal Bureau of Investigation (FBI) Innocent Images Task Force, with participation from the Lee County Sheriff's Office, Cape Coral Police Department, and Clewiston Police Department. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Two Savannah Men Sentenced to Lengthy Prison Terms for Federal Firearms OffensesRead the Press Release
Prosecutions part of Project CeaseFire, which targets dangerous felons and drug traffickers with firearms in the Savannah area
SAVANNAH, GA – Two Savannah residents, Jacques Pope, 21, and Antwan Clark, 24, were sentenced last Thursday by Senior District Court Judge B. Avant Edenfield for their roles in federal firearms violations in the Savannah area. Pope was sentenced to 96 months in prison for being a felon in possession of ammunition; Clark was sentenced to 84 months in prison for, in part, possessing a firearm during a drug trafficking crime. Judge Edenfield ordered that both sentences run consecutive to state sentences that defendants were currently serving for unrelated crimes.
Evidence during the sentencing hearings revealed that Pope, a felon, discharged a firearm on New Year’s Eve, 2011, and struck a pedestrian. While a firearm was not recovered, evidence linked the discharged ammunition to Pope. Clark was sentenced after Savannah-Chatham Counter Narcotics Team executed a search warrant at his residence where marijuana, cocaine, and loaded firearms were recovered.
Both cases were prosecuted under Project Ceasefire, a joint firearms initiative of the U.S. Attorney’s Office, the Chatham County District Attorney’s Office, the ATF, and the Savannah-Chatham Metro Police Department. Project Ceasefire is a cooperative effort between federal and local law enforcement agencies to combat gun crime by targeting felons previously convicted of drug offenses or crimes of violence and who are found to be in possession of firearms, as well as those who commit violent gun offenses. During 2012, the United States Attorney’s Office charged 55 defendants with federal firearms offenses that were committed in the Savannah area.
United States Attorney Tarver said, “Law enforcement’s top priority is the safety of our citizens. We will bring the full force of justice on dangerous criminals who possess firearms. Those dangerous felons who possess firearms will be investigated, prosecuted, and can expect to serve lengthy prison sentences in federal prison.
Assistant United States Attorneys Tania Groover and Carlton R. Bourne prosecuted the cases against Pope and Clark for the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.Former Treasure Valley Woman Pleads Guilty to Theft from Financial InstitutionRead the Press Release
BOISE – Season Heather Hymas, 27, of American Fork, Utah, pleaded guilty today in United States District Court in Boise to theft from a financial institution, a misdemeanor, U.S. Attorney Wendy J. Olson announced. The charge is punishable by up to one year in prison, a maximum fine of $100,000, and up to one year of supervised release.
According to the plea agreement, on December 8, 2006, Season Hymas obtained a residential loan based on false statements in a loan application. The false statements included misrepresentations concerning her employment, monthly income, and the account balance of funds held in a bank account.
Season Hymas is scheduled to be sentenced on April 8, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise. The defendant’s husband, Travis Richard Hymas, was sentenced in October 2012 to 24 months in prison for wire fraud and ordered to pay $241,307.04 in restitution.
The case is part of the investigation of mortgage fraud activity related to Crestwood Homes, which involved multiple defendants who bought and sold real estate in order to "flip" it, or gain profits from the sales. Crestwood Homes was a residential builder in the Treasure Valley that filed for bankruptcy in July 2008. After doing so, it was discovered that individuals associated with Crestwood were involved in submitting fraudulent residential loan applications to lenders. The financial institutions and mortgage lenders incurred substantial losses on the loan transactions.
The case was investigated by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation, with assistance provided by the Office of the United States Trustee and the Idaho Department of Insurance. The case is being prosecuted by the U.S. Attorney's Office for the District of Idaho and the State of Idaho, Office of the Attorney General.
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.
Former Office Administrator and Secretary to District Attorney for the 15th Judicial District Pleads Guilty to Bribery ChargesRead the Press Release
Acknowledges Receiving $55,000 in Bribes
LAFAYETTE, La.: United States Attorney Stephanie A. Finley announced today that Barna D. Haynes, 58, of Lafayette, La., the former office administrator and secretary to the District Attorney for the 15th Judicial District, pled guilty to a one count Bill of Information charging Haynes with Conspiracy. According to the Bill of Information, beginning in approximately March of 2008 and continuing until February 27, 2012, Haynes conspired to accept bribes from a co-conspirator in return for Haynes’ assistance in obtaining favorable resolutions of criminal cases pending in the 15th Judicial District.
The following are admissions made by Haynes in a factual stipulation during the guilty plea hearing in the open court before Magistrate Judge Patrick J. Hanna:
Haynes knew at the time she accepted the bribes that the co-conspirator was soliciting and receiving large payments from individuals with criminal cases pending with the District Attorney's Office. Haynes also knew that the co-conspirator has never been licensed to practice law. The cases for which Haynes received payments from the coconspirator involved a variety of crimes, both felonies and misdemeanors, the majority of which were Operating a Vehicle While Intoxicated (OWI) cases.
The Louisiana Code of Criminal Procedure Article 894 provides a procedure by which a person can initially plead guilty to a crime with the understanding that the conviction will be set aside if the person successfully completes certain requirements imposed during a probationary period.
The District Attorney's Office had previously established a process by which select individuals could receive what was referred to as “immediate 894 pleas” on OWI cases. In order to qualify for the “immediate 894 plea,” the charged individuals had to provide certifications at the time of the plea that they had completed all legal prerequisites, including community service, a substance abuse program, and a driver safety program. If the District Attorney authorized the “immediate 894 plea,” their case was not placed on any docket, and they were allowed to plea at a time and place different than the normal OWI docket. Following the entry of the “immediate 894 plea” the judge would immediately grant the 894 motion dismissing the conviction, which served as an acquittal, thereby enabling those OWI defendants to immediately reinstate their driving privileges.
Beginning in 2008, Haynes began placing OWI cases of the co-conspirator’s “clients” in the immediate 894 process without the District Attorney's knowledge and approval. Haynes would coordinate the scheduling and execution of special immediate 894 sessions with the District Court Judge and the assigned Assistant District Attorney. These special sessions were exclusively for the co-conspirator’s “clients.” Haynes also prepared the expungement paperwork associated with the co-conspirator's client's cases. In return for coordinating these 894 sessions, Haynes was paid $500 per case by the co-conspirator.
While the co-conspirator paid Haynes primarily to facilitate “immediate 894 pleas” in OWI cases, he also paid Haynes to facilitate the resolution of other cases including drug cases, other felony cases, and non-OWI misdemeanor cases. Haynes admitted that the bribe payments she received during the term of the conspiracy totaled $55,000. However, the prosecution contends that the bribe payments exceeded $70,000.
At sentencing, this defendant faces a term of imprisonment of up to five years, a fine of up to $250,000, or both, and a term of supervised release of not more than three years following confinement. Sentencing will be scheduled at a later date.
United States Attorney Finley stated, “Corruption in the District Attorney’s Office erodes public confidence in the fair prosecution and resolution of criminal cases and threatens to undermine our judicial system. My office, along with the FBI, is committed to aggressively investigating and prosecuting those who try to advance their personal agendas through bribery.”
For additional details regarding Haynes’ guilty plea, see attached a copy of the Plea Agreement.
The case is being investigated by lead agent Doug Herman with the FBI and is being prosecuted by Assistant U.S. Attorney John Luke Walker.
United States Attorney Finley is available for comment and can be reached at (337) 262-6618.
Former Jersey City Health & Human Services Assistant Director and Zoning Official Sentenced to 30 Months in PrisonRead the Press Release
Previously Pleaded Guilty to Conspiracy to Commit Attempted Extortion
NEWARK, N.J. – Former Jersey City Health & Human Services Assistant Director and zoning official Maher A. Khalil was sentenced today to 30 months in prison for conspiring to commit extortion.
Khalil, 42, previously pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an Information charging him with conspiracy to commit extortion under color of official right. Khalil admitted he accepted bribes from a government cooperating witness in return for attempting to obtain real estate development approvals for the cooperating witness, and for facilitating bribe payments to other municipal officials.
According to documents filed in this case and statements made in court:
Between March 2008 and July 2009, Khalil accepted a total of $72,500 in corrupt payments from the cooperating witness, Solomon Dwek, in exchange for his official influence as a Jersey City official in favor of Dwek and for facilitating introductions and corrupt payments to other municipal officials willing to accept corrupt payments for helping Dwek obtain development approvals. Khalil accepted cash bribe payments on numerous occasions in exchange for assistance in obtaining approvals for a property on Garfield Avenue in Jersey City.
Khalil also said he accepted bribe payments from Dwek after arranging meetings between Dwek and various Jersey City municipal officials who, in exchange for corrupt payments, would help Dwek get approvals.
In addition to the prison term, Judge Linares sentenced Khalil to one year of supervised release and ordered him to forfeit $72,500.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez; and IRS - Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s sentencing. He also thanked the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher J. Gramiccion, for its role in the investigation.
The government is represented by Assistant U.S. Attorney Mark McCarren of the U.S. Attorney’s Office Special Prosecutions Division.
13-026
Defense counsel: Michael F. Pedicini Esq., Morristown, N.J.Former Florida Hospital Employee Sentenced to Federal Prison for Data TheftRead the Press Release
Orlando, Florida - U.S. District Judge Roy B. Dalton, Jr. today sentenced Dale Munroe II (35, Winter Haven) to 12 months and one day in federal prison for his role in stealing the information of Florida Hospital patients. As part of his sentence, Munroe was also ordered to serve a two-year term of supervised release. Munroe pleaded guilty on October 22, 2012.
According to court documents, Munroe was hired at the Celebration, Florida location of Florida Hospital in July 2006. During his employment, he worked as a Registration Representative in the Emergency Department where he would register patients as they came in the main emergency entrance. From January 2009, until his termination in July 2011, Munroe used his position to obtain individually identifiable health information of patients of Florida Hospital who had been involved in motor vehicle accidents. Munroe would then disclose that information to Sergei Kusyakov, who was involved in the operation of two chiropractic clinics (Metro Chiropractic and Wellness Center and City Lights Medical Center). Kuskyakov and other conspirators would then use the stolen information to solicit Florida Hospital patients for chiropractic and legal services. Kusyakov would pay Munroe for his role in providing the stolen information. On July 12, 2011, Munroe was terminated by Florida Hospital for a patient data breach that was unrelated to the conspiracy described above.
Approximately a week after his termination, Katrina Munroe (30, Winter Haven), Munroe’s wife and also an employee of Florida Hospital, was recruited by the conspirators to take over the role of stealing patient data and providing it to Kusyakov. In August 2012, Katrina Munroe was terminated from her position at the hospital, after becoming a suspect in a data breach incident. In December 2012, she pleaded guilty to her role in the conspiracy. She faces a maximum penalty of five years in federal prison. Her sentencing hearing has been set for March 11, 2013.
On January 7, 2013, Sergei Kusyakov (38, Davenport) pleaded guilty to one count of conspiracy and four counts of wrongful disclosure of individually identifiable health information. He faces a maximum penalty of 45 years in federal prison. His sentencing hearing has been set for March 25, 2013.
These cases were investigated by the Federal Bureau of Investigation and the Florida Department of Financial Services, Division of Insurance Fraud. They are being prosecuted by Assistant United States Attorney Roger B. Handberg.
Former Citibank Employee Convicted for Stealing and Hiding More Than $1.3 Million from Wall Street Titan William SalomonRead the Press Release
Also Convicted of Failing to Pay More Than $250,000 in Taxes
NEWARK, N.J. – A former Citibank employee was convicted today of stealing more than $1.3 million from William Salomon, a 98-year-old former managing partner of Salomon Brothers, which was later acquired by Citibank, U.S. Attorney Paul J. Fishman announced.Karen Febles, 48, of Wallington, N.J., who worked as an executive assistant for Citibank, helping Salomon with his personal and professional finances, was convicted by a jury of bank fraud, four counts of wire fraud, three counts of money laundering, and two counts of tax evasion, after a one-week trial before U.S. District Judge William J. Martini in Newark federal court.
“Karen Febles took advantage of her position as an executive assistant to loot her employer’s bank accounts of nearly $2 million,” U.S. Attorney Fishman said. “By betraying her employer’s trust, Febles financed a luxurious lifestyle she could not otherwise have afforded. Today’s jury verdict ensures she will soon find out the true cost of her choices.”Acting Special Agent in Charge of IRS-Criminal Investigation, Newark Field Office, Shantelle P. Kitchen said, “This case shows that the appearance of success can be a mask for a tangled web of financial lies. Today, justice is served as Karen Febles is being held responsible and will now have to face judgment for her criminal conduct.”
Acting Special Agent David Velazquez said: “The FBI remains committed to vigorously investigating individuals who violate positions of trust. Karen Febles took advantage of her unique relationship with her employer in order to fulfill her selfish need for luxurious items and trips. Today’s verdict sends a message to others, in similar positions of trust, that these activities will be fully investigated by the FBI.”
According to documents filed in this case and the evidence at trial: From at least 2000 through September 2011, Febles worked as an executive assistant for Citibank in New York City. Her duties included assisting Salomon with his finances. As part of her employment, Febles had exclusive control over Mr. Salomon’s bank accounts and routinely prepared and negotiated checks on his behalf. Febles was terminated by Citibank in September 2011.
Between 2007 and September 2011, at least $1.3 million of Mr. Salomon’s funds went from his bank accounts directly into Febles’ 21 bank accounts, including two accounts that she maintained for her minor son. A review of hundreds of checks written by Febles revealed that the checks had been altered by Febles – after they had been signed by Mr. Salomon – to add additional sums of money. Once issued, Febles negotiated many of these checks, in cash, for the altered amount.
At the same time that more than $900,000 in checks and almost $400,000 cash went from Mr. Salomon’s bank accounts into Febles’ accounts, Febles spent hundreds of thousands of dollars on luxury purchases. These included, in just a five-month period in 2011, $52,720 in cash for a 2011 Range Rover; $34,650 in cash for a Mercedes-Benz; $43,200 in cash for one year’s rent of a three-bedroom home in Clifton, N.J.; and more than $45,000 in cash for six months’ rent on two apartments in Palisades Park, N.J. Febles’ purchases also included more than $115,000 on vacation and travel expenses; $56,000 rent on a four-bedroom home in Mahwah, N.J.; more than $20,000 on other automobile payments; and more than $20,000 on personal expenses, including entertainment, meals, travel, and clothing. During this time, Febles never earned more than $50,000 per year in take-home pay from Citibank.
In addition to the evidence of Mr. Salomon’s money going into Febles’ bank accounts and the evidence of Febles’ expenditures, the evidence at trial also established that Febles transferred hundreds of thousands of dollars that she stole from Mr. Salomon from her accounts into custodial bank accounts that she maintained for her minor son. The jury found that Febles transferred these funds to her son in order to conceal her bank and wire frauds.
In the tax years 2009 and 2010, Febles failed to disclose to the IRS any of the money that she stole from Mr. Salomon. In those two years, she claimed tax refunds of $14,839 and $9,293, respectively. Had Febles disclosed the money that she stole from Mr. Salomon on her tax returns in 2009 and 2010, she would have owed almost $70,000 to the United States in 2009 and more than $200,000 to the United States in 2010.
The bank fraud count carries a maximum potential penalty of 30 years in prison and a maximum fine of $1 million. Each of the four counts of wire fraud carry a maximum potential penalty of 30 years in prison and a maximum fine of $1 million. Each of the three counts of money laundering carry a maximum potential penalty of 20 years in prison. Each of the two counts of tax evasion carry a maximum potential penalty of five years in prison and a maximum fine of $250,000. Sentencing is scheduled for June 5, 2013.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Kitchen in Newark, and special agents of the FBI, under the direction of Acting Special Agent in Charge Velazquez in Newark, with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorneys Aaron Mendelsohn of the Economic Crimes Unit and Evan Weitz of the Asset Forfeiture and Money Laundering Unit of the U.S. Attorney’s Office in Newark.
This case was brought in coordination with 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.
13-028
Defense counsel: Edward J. McQuat and Richard Langweber, New York
Former CPA Sentenced for Filing False Tax ReturnsRead the Press Release
Macon J. Dew, 64, of Mr. Juliet, Tennessee, was sentenced on January 11, 2013, by Chief U.S. District Judge William J. Haynes, Jr., to serve 12 months and 1 day in federal prison, and ordered to pay restitution in the amount of $205,535.00 to the IRS for his role in the preparation of false tax returns, announced Jerry E. Martin, U.S. Attorney for the Middle District of Tennessee. Dew was also prohibited from preparing or filing any future tax returns.
On July 18, 2012, Dew pleaded guilty to two counts of aiding and assisting in the preparation of false tax returns. Dew admitted that he was a Certified Public Accountant until 2008 and he had operated a tax return preparation business in Mt. Juliet and Old Hickory, Tenn. He acknowledged that between 2001 and 2004, he prepared at least 33 false income tax returns for others. The false items included fictitious W-2 forms, false Schedule C businesses, and fraudulent education credits. Dew admitted that the tax loss from the filing of these false returns was at least $40,000.
Additionally, Dew admitted that for the 2006 tax year, he prepared returns and relevant schedules for two individuals who formed a corporation known as CP Construction, LLC. The returns falsely reported a loss of $751,300.00 each. These claimed losses resulted in a tax loss to the government of $165,535.
“This office will vigorously prosecute those who defraud the United States government by filing false income tax returns,” said U.S. Attorney Martin. “It is especially offensive when individuals with licenses and special knowledge use their skills to prepare false returns and false documents to support them. We will continue to pursue the public money that was paid for false tax refunds to restore it to the U.S. Treasury.”
This investigation was conducted by IRS- Criminal Investigation. Assistant U.S. Attorney Jimmie Lynn Ramsaur represented the government.Former Border Patrol Agent Sentenced for Possession of Child Pornography and Theft of Government PropertyRead the Press Release
United States Attorney Laura E. Duffy announced today that United States District Judge Marilyn L. Huff sentenced former United States Border Patrol (USBP) agent Rodolfo Zuniga to serve 37 months in prison and five years of supervised release, and to pay $9,937.71 in restitution to the United States based on his conviction of three federal crimes: (1) possession of images of minors engaged in sexually explicit conduct, in violation of Title 18, United States Code, Section 2252(a)(4)(B); (2) theft of government property, in violation of Title 18, United States Code, Section 641; and (3) interstate transportation of stolen goods, in violation of Title 18, United States Code, Section 2314. Judge Huff also ordered Zuniga to comply with all federal, state, and local laws, including to register as a sex offender.
According to information included in Zuniga’s written plea agreement and discussed at his sentencing, during the period between November 2009 and March 2010, Zuniga was a USBP agent 2 employed by U.S. Customs and Border Protection (CBP), U.S. Department of Homeland Security (DHS). He was assigned to the Imperial Beach Border Patrol Station, San Diego Sector, located in Imperial Beach, California.
While assigned to the Imperial Beach USBP station, Zuniga served as an Explorer Scout Advisor, and while serving in that capacity he had access to equipment owned by the USBP/CPB. The equipment included night vision goggles (NVGs) and global positioning system (GPS) units. From time to time, Explorer Scouts under Zuniga's supervision used that equipment as part of their training. While assigned to the Imperial Beach USBP station, Zuniga stole four sets of NVGs and one GPS unit, and thereafter sold them on the Internet auction and shopping website, eBay, Inc. Zuniga received payments for the stolen property through PayPal, Inc., from an individual located in China. The total amount of money Zuniga received for the NVGs, which were not recovered, was $9,937.71. The GPS unit was sold to a couple in New Jersey, for $77.73. Agents recovered the GPS unit.
On June 29, 2012, agents served a federal search warrant at Zuniga’s Chula Vista apartment. Zuniga's desktop computer and an external hard drive were seized. Later forensic analysis revealed the computer and external hard drive contained 384 visual depictions of minors engaged in sexually explicit conduct (89 images were discovered on the desktop computer; the external hard drive contained 220 images and one video).
Zuniga was arrested by Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the DHS Office of Inspector General (OIG). Zuniga resigned from the USBP on July 16, 2012.
DEFENDANT Case Number: 12CR3759-H Rodolfo Zuniga SUMMARY OF CHARGESCount 1 - Title 18, United States Code, Section 641 (Theft of Government Property) Count 2 - Title 18, United States Code, Section 2314 (Interstate Transportation of Stolen Goods)
INVESTIGATING AGENCIES
Count 3 - Title 18, United States Code, Section 2252(a)(4)(B) (Possession of Child Pornography)Immigration and Customs Enforcement's Homeland Security Investigations
Department of Homeland Security Office of Inspector GeneralFive Laredoans Convicted in Conspiracy to Transport CocaineRead the Press Release
LAREDO, Texas – Alberto Sauceda, 38, Salvador Rodriguez-Fajardo, 38, Ricardo Garza, 39, Moises Andrade, 20, and Laura Rodriguez, 42, all of Laredo, have been convicted for their roles in a cocaine conspiracy, United States Attorney Kenneth Magidson announced today.
All five were named in a sealed indictment returned by a grand jury on Aug. 28, 2012, which alleged the drug trafficking organization transported five kilograms or more of cocaine since 2008. The organization transported cocaine from Nuevo Laredo, Mexico, to Houston and Miami on a regular basis. Last week, Rene Cardenas, 36, of Miami, Fla., also pleaded guilty to the conspiracy.
In the guilty plea today, Sauceda admitted to the possession of more than four kilograms of cocaine in his Ford F-150 in January 2010. That same vehicle, as well as another vehicle registered to Sauceda, were utilized in the delivery of two to three kilograms of cocaine by Garza on three occasions in July 2011 to Rodriguez-Fajardo at a Home Depot parking lot. Rodriguez-Fajardo stored the cocaine in a secret compartment located behind a stove in the house he shared with his wife, Rodriguez.
Rodriguez assisted Rodriguez-Fajardo in carrying out the conspiracy. On one occasion, she traveled to St. Augustine Square in Laredo to collect money for him and another person as payment for their services.
Andrade admitted to his role in the transportation of one cocaine load on Aug. 7, 2011, for which he received $500.
Each defendant faces a mandatory minimum sentence of 10 years and up to life in prison and a $10 million fine. The United States is also seeking a money judgment in the amount of $2,408,204. U.S. District Judge Marina Garcia Marmolejo accepted the pleas and has set sentencing for April 30, 2013.
The case is the result of a two-year Organized Crime Drug Enforcement Task Force Investigation dubbed Silver Fox Hunt led by the Drug Enforcement Administration with the assistance of Homeland Security Investigations. Assistant United States Attorneys James Hepburn and Elizabeth Rabe are handling the case.
Fitchburg Man Convicted of Distributing Crack CocaineRead the Press Release
BOSTON - A Fitchburg man was convicted Friday in U.S. District Court in Worcester for distributing crack cocaine.
Hector Rodriguez, Jr. a/k/a Bolo, 32, was convicted by a jury of three counts of distributing cocaine base. Sentencing is scheduled for April 8, 2013. Rodriguez faces up to life in prison, to be followed by at least eight years of supervised release and a $5 million fine.
During the five-day trial evidence showed that Rodriguez distributed crack cocaine on Oct. 26, Nov. 2, and Nov. 16, 2011. In January 2012, Rodriguez was arrested as part of Operation Red Wolf, a multi-agency investigation targeting gang members involved in drug dealing and firearms distribution in the Fitchburg area.
United States Attorney Carmen M. Ortiz; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division; Guy Thomas, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Fitchburg Police Chief Robert A. DeMoura; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Cory Flashner and Mark Grady of Ortiz’s Worcester Branch Office.Final Defendant in Pill Conspiracy Enters Plea of GuiltyRead 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 - The final defendant involved in a pill conspiracy in Moundsville, West Virginia, entered a plea of guilty on January 4, 2013, before Magistrate Judge James E. Seibert.
United States Attorney William J. Ihlenfeld, II, announced that: JOHN HARVEY GODDARD, JR., age 26, entered a plea of guilty “Distribution of Oxycodone” on February
10, 2011, in Moundsville.GODDARD, who is in custody pending sentencing, face up to 20 years imprisonment and a $1,000,000 fine.
This case was prosecuted by Assistant United States Attorney John C. Parr and investigated by officers of the Moundsville Police Department, Marshall County Sheriff’s Department and the West Virginia State Police.
Felon from Aurora, Minnesota, Sentenced for Possessing A 20-gauge ShotgunRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 34-year-old felon from the northeastern Minnesota community of Aurora was sentenced for possessing a 20-gauge shotgun. United States District Court Judge Patrick J. Schiltz sentenced John Joseph Douglas to 240 months in federal prison on one count of being an armed career criminal in possession of a firearm. Douglas was indicted on this charge on October 4, 2011, and convicted on February 10, 2012, following trial.
The evidence presented at trial proved that on May 30, 2011, Douglas possessed the gun and, while surrounded by a group of people, fired it into the air several times. Upon their arrival on the scene, officers found the people seated around a campfire in a vacant lot. Searching the grounds, the officers discovered a box of ammunition and several freshly fired shotgun shell casings. They found the sawed-off shotgun itself nearby.
Because Douglas was previously convicted of a felony, he was prohibited under federal law from possessing firearms at any time. His prior convictions include third-degree burglary (1999), first-degree burglary (1999), second-degree assault (1999 and 2007), and aggravated robbery (twice in 1999), all of which occurred in St. Louis County. Since each of those offenses constituted crimes of violence, Douglas’s sentence in the current federal case was subject to the federal armed career criminal statute, which mandates a minimum sentence of 15 years in federal prison. Since the federal criminal justice system does not have parole, Douglas will serve virtually his entire sentence behind bars.
This case was the result of an investigation by the St. Louis County Sheriff’s Office, the Hoyt Lakes Police Department, the Gilbert Police Department, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorneys Andrew Dunne and Jeffrey M. Bryan.Federal Grand Jury Returns IndictmentsRead 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 — Five individuals were named in five Indictments returned by a federal grand jury sitting in Clarksburg, West Virginia, on January 8, 2013.
United States Attorney William J. Ihlenfeld, II, announced the following indictments: BRIAN A. CLARKE, age 25, of Morgantown, West Virginia, was named in a three- count Indictment charging him with “Distribution of Oxycodone” on May 2; May 16; and, June 8, 2012, in Monongalia County. If convicted, CLARKE faces up to 20 years imprisonment and a $1,000,000 fine on each count.AUGUST TAMPOYA, age 48, of Arnettsville, West Virginia, was named in a three- count Indictment charging him one count of “Manufacturing in Excess of 100 Marijuana Plants;” one count of “Distribution of Marijuana;” and, one count of “Possession with Intent to Distribute Marijuana.” If convicted, TAMPOYA faces up at least 5 and up to 40 years imprisonment and a fine of $2,000,00 on the manufacturing charge and up to 5 years imprisonment and a fine of $250,000 on each of the distribution and possession counts.
JENNIFER NICOLE KELLEY, age 27, of Morgantown, was named in a seven-count Indictment charging her with three counts of “Distribution of Marijuana;” three counts of “Distribution of Cocaine;” and, one count of “Distribution of Marijuana within 1,000 Feet of Fairmont State University.” If convicted, KELLEY faces up to 5 years imprisonment and a
$250,000 on each of the marijuana distribution counts; up to 20 years imprisonment and a
$1,000,000 fine on each of the cocaine distribution counts; and, at least 1 and up to 10 years imprisonment and a $500,000 on the protected location (FSU) count.These three cases were investigated by the West Virginia State Police-Bureau of
Criminal Investigations.
JOSHUA NICHOLSON, age 35, of Lost Creek, West Virginia, was named in a two- count Indictment charging him with “Possession of a Firearm by a Convicted Felon” and “Possession of a Firearm with an Obliterated Serial Number.” If convicted, NICHOLSON faces up to 10 years imprisonment and $250,000 fine on each count.TIMOTHY LINGO, age 35, of Westover, West Virginia, was named in a three-count Indictment charging him with “Possession of a Firearm by a Convicted Felon;” “Possession with intent to Distribute Cocaine;” and, “Use/Carry of a Firearm in Relation to a Drug- Related Offense.” If convicted, LINGO faces up to 10 years imprisonment and a $250,000 fine on the felon in possession charge; up to 20 years imprisonment and a $1,000,000 fine on the cocaine charge; and, a mandatory 5 years imprisonment and a $250,000 fine on the firearms charge.
These two cases were investigated by the Bureau of Alcohol, Tobacco and Firearms. These five cases will be prosecuted by Assistant United States Attorney Zelda E.
Wesley.All of the charges contained in the above-referenced indictments are merely accusations and not evidence of guilt, and each defendant is presumed innocent until and unless proven guilty.
Fairview Heights Man Receives 35 Years in Prison for Production of Child PornographyRead the Press Release
A Fairview Heights man, Andrew Gerald Millas, 43, received a 35 year prison sentence in federal court in East St Louis on January 14, 2013, following his plea of guilty to three counts of Production of Child Pornography and one count of Transportation of Child Pornography, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Following service of his sentence, Millas will be on federal supervised release for the remainder of his life and will also be required to register as a sex offender.
“This sentence should be a stark, but fair, reminder to those who prey on children - the eyes of law enforcement will find you and I will use every legal means to put you in prison,” said United States Attorney Wigginton.
A factual stipulation filed at the time of the guilty plea revealed that, in December, 2011, detectives of the Boise, Idaho Police Department engaged Millas in online chats after they became concerned with his postings on a website that offered child pornography for distribution. Millas sent the undercover officers still images of child pornography he had manufactured, and also broadcast a live sex act with a minor to them via a web camera. The Boise Police Department quickly forwarded the investigative lead to the Fairview Heights Police Department, and Millas was promptly arrested. Forensic analysis of computer equipment seized from Millas by the FBI revealed voluminous digital evidence, including 14,560 multimedia files, over 900,000 image files, and 21,232 recovered image files depicting screen shots captured by a keystroke logger program. Among the files recovered were movies depicting Millas having sexual relations with a sixteen year old child and other movies which Millas made through surreptitious filming which depicted other minors engaging in sexual conduct.
Millas has been in custody since his arrest on December 30, 2011. The investigation was conducted by the Boise, Idaho Police Department; the Fairview Heights Police Department, and the Collinsville Police Department, which has a detective assigned to the Federal Bureau of Investigation’s Cybercrime Task Force. This case is part of Project Safe Childhood, in which the United States Attorney’s Office, in conjunction with federal and state law enforcement authorities, is actively investigating and prosecuting individuals who are involved in the exploitation of children. The case was prosecuted by United States Attorney Stephen R. Wigginton and Assistant United States Attorney Suzanne M. Garrison.
Dracut Man Pleads Guilty to Defrauding IRS of $2 Million in Payroll TaxesRead the Press Release
BOSTON - A Dracut man was convicted today of defrauding the Internal Revenue Service of approximately $2 million by lying on corporate tax forms about how many workers he employed.
Tom Seng, 70, pleaded guilty before U.S. District Judge George A. O’Toole to 20 counts of making and subscribing a false tax return.
Beginning around 2006, S&T Industrial Service, Incorporated, (S&T) a company owned and operated by Seng, began providing temporary employees to several companies in the Boston area. Seng, however, failed to list these employees on S&T's quarterly and yearly corporate tax returns, in an effort to avoid paying Social Security and Medicare taxes on employee wages and withholding federal income taxes. Overall, Seng failed to pay and withhold federal taxes on approximately $12 million in wages, resulting in losses to the U.S. Treasury of approximately $2 million. Moreover, at least one company working with S&T placed its permanent workers on S&T's payroll, instead of keeping them on the company's books, to hide the fact that the workers were permanent employees of the company and therefore avoided paying taxes on the employees' wages.
Judge O’Toole scheduled sentencing for April 16, 2013. Seng faces up to three years in prison on each count, to be followed by up to three years of supervised release and a maximum fine of $250,000. Seng must also pay the costs of prosecution, and full restitution to the U.S. Treasury.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Andrew E. Lelling of Ortiz’s Economic Crimes Unit.
Dontreal Jenkins and Trevayne Jones Convicted of Embezzlement of Government Property and Aggravated Identity TheftRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that on January 11, 2013, a federal jury in Albany, Georgia, convicted defendants Dontreal M. Jenkins, and Trevayne D. Jones, both of Albany, Georgia, on Counts 1 through 5 of a superseding indictment on the following charges: Conspiracy to Embezzle Public Monies, United States Treasury checks in the amount of $700,000, Counts 2 and 4, Embezzlement of Government Property, and Counts 3 & 5, and Aggravated Identity Theft.
From about January 28, 2011, and continuing through on or about May 12, 2011, Jenkins and Jones, acting with others in a conspiracy to embezzle public monies, stole and cashed United States Treasury checks using, without lawful authority, the names and signatures of the intended payees. The jury further found Jones guilty on an additional count of misleading statements to law enforcement in connection with the embezzlement offense. Jenkins was convicted on an additional count of conspiracy to commit mail and wire fraud in connection with a scheme in which he participated to obtain student loan monies by fraud from the United States Department of Education.
The defendants face a maximum penalty of ten years per count as to each act of embezzlement, a $250,000 fine, and supervised release. Sentencing will be scheduled before Judge W. Louis Sands, United States District Judge for the Middle District of Georgia at a later date.
This theft of United States Treasury checks case was investigated by the United States Secret Service and the United States Department of Education Office of Inspector General investigated the student loan fraud. Assistant United States Attorney Jim Crane handled the prosecution.
For additional information, please contact Sue McKinney at the U.S. Attorney’s Office, at 478-621-2602.
Customer Embezzles $33,072.68 from the United States Postal ServiceRead the Press Release
Richard S. Hartunian, United States Attorney for the Northern District of New York, announced that JOHN GIBSON, III, age 37, of Oswego, N.Y., announced today the federal arrest of a postal customer for theft of government property.
A federal indictment, returned in U.S. District Court in Syracuse, N.Y. on Thursday, January 10, 2013, charged JOHN GIBSON, III with theft of government property in the amount of $33,072.68. The indictment alleges that GIBSON, III purchased 91 postal money orders with checks drawn on closed checking accounts.
JOHN GIBSON, III was arrested today and made his initial appearance before the Hon. Andrew T. Baxter, United States Magistrate Judge. GIBSON, III was released on his own recognizance.
GIBSON, III faces a maximum penalty of 10 years incarceration, a fine of up to $250,000, and a term of supervised release of up to 3 years.
GIBSON, III’s arrest is the result of a joint investigation by U.S. Postal Inspection Service and the United States Postal Service Office of Inspector General. The investigation began in June 2012.
JOHN GIBSON, III is being prosecuted by Assistant U.S. Attorney Tamara B. Thomson, who can be reached at 448-0672.
The charges are merely accusations and the defendant is presumed innocent until and unless proven guilty.
Corey “Coop” Lidell Sentenced to 22 Years in Prison for Role in Cocaine Distribution ConspiracyRead the Press Release
Memphis, TN – Corey Lidell, a/k/a “Coop,” 32, of Cordova, TN, was sentenced to 264 months in prison for his role in a conspiracy to distribute more than seven kilograms of cocaine, announced U.S. Attorney Edward L. Stanton III.
# # # #
Lidell was a street-level drug dealer involved with a major drug trafficking ring headed by Enricko Marshall and Christopher Boyland. Lidell was charged along with Marshall, Boyland and 11 others in an 11 count superseding indictment on June 5, 2012. Lidell pleaded guilty to one count of conspiracy to possess with the intent to distribute at least five kilograms of cocaine. Twelve of his thirteen co-conspirators are currently awaiting sentencing, and one is awaiting trial.
U.S. Chief District Judge Jon P. McCalla took into account Lidell’s lengthy criminal history in imposing sentence. He also ordered Lidell to serve five years of supervised release.
This case was investigated by Drug Enforcement Administration (DEA) Task Force Officer John Rada, the Shelby County Sheriff’s Office, and Rod Waller, Special Agent with the DEA. This case was prosecuted for the government by AUSA Jerry Kitchen.Cedar City Man Sentenced to Prison for Felony Tax CrimesRead the Press Release
Las Vegas, Nev. – A man who submitted false and fraudulent federal tax returns for himself and others causing hundreds of thousands of dollars of losses to the IRS, was sentenced today to 2½ years in prison, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Michael Titus, 49, most recently of Cedar City, Utah, but currently in federal custody, was sentenced by Senior U.S. District Judge Philip M. Pro to 30 months in prison and three years of supervised release, and ordered to pay approximately $300,000 in restitution to the IRS. Titus pleaded guilty on Sept. 4, 2012, to one count of filing a false claim with the IRS.
According to plea agreement, beginning in about 2007, Titus prepared and filed fraudulent federal tax returns for himself and others in Nevada and Utah, for the purpose of obtaining significant tax refunds to which the taxpayer was not entitled. Through his fraudulent practices, Titus caused losses to the IRS of approximately $468,481. Among other things, Titus created fraudulent W-2 forms and claimed false business losses on the tax returns. Specifically on Jan. 9, 2009, Titus prepared and filed a fraudulent tax return for himself and his wife claiming over $450,000 in income from Medco Networks, Inc., as well as significant withholdings and business losses, when Titus knew that he had not been so employed or earned such income and did not have such withholdings or losses. By filing this false and fraudulent return, the IRS issued to Titus a refund of $49,682.
Titus has several prior felony convictions in Missouri and Arkansas for burglary and theft, as well as a gross misdemeanor conviction in Clark County in 2007 for securities fraud.
The case was investigated by IRS Criminal Investigation and was prosecuted by Assistant U.S. Attorney Kathryn C. Newman.
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.
Career Criminal Sentenced for Possessing A Nine-millimeter PistolRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 45-year-old career criminal was sentenced for possessing a nine-millimeter pistol. United States District Court Judge Joan N. Ericksen sentenced Michael Dennis Stanke, of Lino Lakes, to 180 months in prison on one count of being a felon in possession of a firearm. Stanke was indicted on June 11, 2012, and pleaded guilty on August 9, 2012.
In his plea agreement, Stanke admitted that on March 8, 2012, while visiting his mother at her residence, he took a nine-millimeter Norinco pistol from the house. He then stole a neighbor’s vehicle from a nearby driveway. A few hours later, Minnetonka police stopped the car Stanke was driving and arrested him. The officers found the loaded firearm lying on the front passenger seat, loaded with seven rounds in the magazine.
Because he is a felon, Stanke was prohibited under federal law from possessing a firearm at any time. His prior Ramsey County convictions include third-degree burglary (1989), theft (1989), fleeing a peace officer in a motor vehicle (1991), theft of a motor vehicle (1993), first-degree assault (2000), and first-degree aggravated robbery (2000). In addition, Stanke was convicted in Hennepin County for theft in 1996 and Dakota County for theft of a motor vehicle in 1997.Since at least three of those offenses constituted crimes of violence, Stanke’s sentence in the current federal case was subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in federal prison. Because the federal criminal justice system does not have parole, Stanke will spend virtually his entire sentence behind bars.
This case was the result of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the Minnetonka Police Department. It was prosecuted by Assistant U.S. Attorney Allen A. Slaughter.Camden County, N.J., Man Admits Illegal Sale of 14 GunsRead the Press Release
CAMDEN, N.J. – A Camden County, N.J., man today admitted selling guns without a license and illegally possessing firearms, U.S. Attorney Paul J. Fishman announced.
Eric J. Reed, 44, of Pennsauken, N.J., pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an Information charging him with one count of dealing firearms without a license and one count of transferring a firearm to a previously convicted felon.
According to documents filed in this case and statements made in court: Between May 2012 and August 15, 2012, Reed bought 14 firearms from Pennsylvania gun shops and gun shows, which he then transferred for resale to his nephew, Ammie Steward, a/k/a “Beav,” a/k/a “B,” 37, of Pennsauken, a previously convicted felon who served a substantial prison term for manslaughter. Steward then resold the firearms.
Reed purchased the firearms in Pennsylvania after fraudulently obtaining a Pennsylvania driver’s license. The 14 firearms included five pistols, seven handguns, and two rifles. Steward sold them to a witness cooperating with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Reed also admitted to using a power tool to obliterate the serial numbers on the 14 guns. A number of the firearms were sold along with ammunition magazines, and seven of the guns were sold along with high-capacity magazines. On at least one occasion, Reed purchased and gave to Steward for resale a firearm (a Kel Tec PLR-16 .223-cal. pistol) along with a box of ammunition. On a separate occasion, Reed purchased and then transferred to Steward for resale a rifle that contained a bayonet. All 14 weapons are now in the custody of law enforcement.
On Dec. 19, 2012, Steward, pleaded guilty before Judge Bumb to one count of dealing firearms without a license and one count of possession of a firearm by a previously convicted felon. He is scheduled to be sentenced March 25, 2013.
The illegal dealing count to which Reed pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine; the transfer of a firearm to a previously convicted felon charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for April 22, 2013.
U.S. Attorney Fishman credited special agents of the ATF, under the direction of Acting Special Agent in Charge Donald J. Soranno, with the investigation leading to today’s guilty plea. He also thanked the Pennsauken Police Department, under the direction of Chief John J. Coffey.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office in Camden.
12-027
Defense counsel: Maggie Moy, Esq., Assistant Federal Public DefenderReed Information
Beaumont Man Pleads Guilty to CarjackingRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, TX – United States Attorney John M. Bales announced today that a Beaumont man has pled guilty to federal carjacking charges in the Eastern District of Texas.
ROGELIO ARELLANO TORRES, 19, of Beaumont, Texas, admitted to charges he car jacked a woman last year during a hearing before United States Judge Marcia Crone today in Beaumont. Torres had been indicted on July 11, 2012 and charged with carjacking in a one count indictment.According to information presented in court, on June 24, 2012, Torres forced the woman at knifepoint into her vehicle in the parking lot of the Pappadeaux’s Restaurant in Beaumont. Torres then drove, with her captive, to a bank ATM where he demanded the victim withdraw money from her account. After withdrawing the money, the woman was eventually forced from her vehicle and Torres fled with her car, purse and cell phone.
Torres faces a term of up to 15 years in prison. A sentencing date has not been set.
This case is being investigated by the Federal Bureau of Investigation and the Beaumont Police Department and prosecuted by Assistant United States Attorney Joseph R. Batte. ###Bank Robbery Sentencing for Wilmington RobberiesRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today REGGIE ANDRE BECKTON, 27, of Wilmington, North Carolina was sentenced by Senior United States District Judge W. Earl Britt to 300 months imprisonment followed by 3 years of supervised release. He was also ordered to pay $689.00 in restitution to the New Bridge Bank and $2,240.00 to RBC Bank.
On September 12, 2012, BECKTON was convicted on one count of Bank Robbery in violation of Title 18, United States Code, Section 2113(a) and one count of Bank Robbery; Aiding and abetting in violation of Title 18, United States Code, Sections 2113(a) and 2. According to the investigation, BECKTON robbed the RBC Centura Bank located at 5120 Market Street, Wilmington, North Carolina on August 17, 2010. On August 26, 2010, BECKTON robbed the New Bridge Bank located at 704 South College Road in Wilmington.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Federal Bureau of Investigation and the Wilmington Police Department. Assistant United States Attorney S. Katherine Burnette prosecuted the case.
Attorney General Holder Appoints Chuck Adkins-Blanch as Vice Chairman of the Board of Immigration AppealsRead the Press Release
FALLS CHURCH, Va. – Attorney General Eric H. Holder, Jr., has announced the appointment of Chuck Adkins-Blanch as Vice Chairman of the Board of Immigration Appeals (BIA), effective January 13, 2013.
Mr. Adkins-Blanch received a bachelor of arts degree in 1984 from Grinnell College and a juris doctorate in 1990 from the National Law Center, George Washington University. He has served as a BIA member since 2008. From 2004 to 2008, he served as an immigration judge at the Headquarters Immigration Court and, from 1995 to 2004, Mr. Adkins-Blanch served in EOIR’s Office of the General Counsel, as general counsel from 2000 to 2004, as acting general counsel from 1999 to 2000, and as an associate general counsel from 1995 to 1999. From 1990 to 1995, he worked for the BIA as an attorney advisor entering on duty through the Attorney General’s Honors Program. From 1989 to 1990, he clerked in private practice with the firm of Maggio & Kattar, specializing in immigration and nationality law. Mr. Adkins-Blanch is a member of the District of Columbia and Virginia State Bars.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Executive Office for Immigration ReviewArmed Career Offender Sentenced to 26 Years in Federal Prison for Hobbs Act Robbery, Federal Firearms ChargesRead the Press Release
PROVIDENCE, R.I. – Alphonso D. Johnson, 38, of Providence, a career offender, was sentenced today to 312 months in federal prison for robbing a Providence convenience store clerk at gunpoint in April 2011, and for robbing and assaulting a Providence restaurant owner with a pistol two days later, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.
U.S. District Court Judge John J. McConnell, Jr. also ordered Johnson to serve five years of supervised release upon completion of his prison term, Johnson pleaded guilty on October 10, 2012, to two counts of Hobbs Act robbery, two counts of being a felon in possession of a firearm, and use and possession of a firearm during a crime of violence.
United States Attorney Peter F. Neronha commented, “We have today another example of a hardened criminal using an illegal gun to victimize others. We also have another example of such a criminal going to federal prison for a very, very long time. I want to thank the Providence Police for their continuing partnership with this Office, and specifically, for the terrific work of the Providence Police Officers involved in this case.”
Providence Police Chief Colonel Hugh T. Clements added, “Through the tireless efforts of the Providence Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives another career criminal is off the street and was prosecuted to the fullest extent of the law. We thank our partners in the U.S. Attorney's office for assisting us in keeping criminals like Johnson off the streets of our city.”
At the time of his guilty plea, Johnson admitted to the court that on April 18, 2011, he robbed a Providence convenience store clerk at gunpoint of several hundred dollars in cash, cigarettes and a box of cigars, and that two days later he robbed a West End restaurant owner at gunpoint of more than $4,300 cash in restaurant proceeds, struck her in the face twice with a .25 caliber pistol and kicked her before fleeing on foot. Providence Police officers quickly canvassed the neighborhood and located Johnson hiding between two parked cars a few blocks away. After a brief foot chase and struggle, Johnson was apprehended.
According to information presented to the court, Johnson, whose criminal record includes multiple convictions as a juvenile, includes felony convictions as an adult for felonious assault, possession of narcotics, simple assaults, domestic assault, and threats to a public official.
Johnson has been detained since his arrest by Providence Police
The case was prosecuted by Assistant U.S. Attorney Richard W. Rose.
The Bureau of Alcohol, Tobacco, Firearms and Explosives assisted Providence Police in the investigation of this matter.
Contact: 401-709-5357
[email protected]"Dr. Smurf" Sentenced to 5 Years Probation for Identity TheftRead the Press Release
PITTSBURGH - A resident of Brick, New Jersey, has been sentenced in federal court to five years probation on his conviction of identity theft, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Tadas Petrauskas, 23.
According to information presented to the court, the court was advised that on or about July 16, 2008, Petrauskas, known on the Internet as "Dr. Smurf," sold the user names and passwords of 39 employees of a data hosting center with approximately 10,000 customers, enabling the purchaser to access the data hosting center's computer systems.
Assistant United States Attorney Paul E. Hull is prosecuting this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, with the assistance of the United States Postal Inspection Service, the National Cyber Forensics Training Alliance, the Computer Crime and Intellectual Property Section of the United States Department of Justice, and Lithuanian authorities, for the investigation leading to the successful prosecution of Tadas Petrauskas.
13 January 2013
Man with Prior State and Federal Convictions Robbed Liquor Store and Shot ClerkRead the Press Release
DAYTON ARMED CAREER CRIMINAL SENTENCED TO MORE THAN 29 YEARS IN PRISON
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON – Mickey Allen Fugate, Jr, 40, of Dayton, Ohio was sentenced in U.S. District Court to serve 25 years in prison for an armed robbery he committed in 2009 and an additional 50 months in prison for committing the robbery while on supervised release for earlier federal crimes.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, and Dayton Police Chief Richard Biehl announced the sentence handed down today by U.S. District Judge Walter H. Rice.
Fugate pleaded guilty on August 28, 2013 to one count of interference with interstate commerce by threats or violence (Hobbs Act) and one count of possession of a firearm following three or more violent felony convictions, (Armed Career Criminal Act).
According to a sentencing memorandum filed by Assistant U.S. Attorney Mary Beth Young prior to today’s hearing, Fugate robbed the Kwik-N-Kold convenience store on Wyoming St. in Dayton, Ohio at gunpoint in November 2009. During the robbery, Fugate shot a male store clerk. The bullet fired at the male clerk struck the victim in the right arm, traveled through his chest cavity, and punctured his right lung, resulting in permanent loss of a portion of the lung. Fugate stole a cash register tray and plastic tip jar and approximately $465 in cash. Fugate led two citizens who followed him as he fled the robbery in a chase throughout the surrounding area, during which he brandished and discharged a firearm.
Dayton Police officers recovered the cash register tray, tip jar, $168 cash, and the Smith and Wesson handgun used during the robbery from the residence to which Fugate fled. At the time of the robbery, Fugate was on supervised release after serving time in federal prison for armed bank robbery and use of a firearm in a crime of violence and a separate federal charge of attempted escape. He also had two prior Ohio burglary convictions, for which he also served prison terms.
“The offense conduct is all the more disturbing in light of Fugate’s history, which places this offense as only the most recent in a string of violent offenses committed by Fugate,” Assistant U.S. Attorney Young wrote.
U.S. Attorney Stewart commended the cooperative investigation by special agents of the FBI and Dayton Police, as well as Assistant U.S. Attorneys Vipal Patel and Mary Beth Young, who prosecuted the case.
# # #Anderson, S.C. Attorney Pleads Guilty to ObstructionRead the Press Release
Defendant Made False Statements To Federal Authorities During Investigation Of Client Indicted on Drug Conspiracy Charges
GREENVILLE, S.C. – Charles Anderson, an attorney in Anderson, S.C., pleaded guilty to obstruction charges in federal court today before U.S. District Judge Michelle Childs in Greenville, S.C., announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
Harry S. Sommers, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Greenville District Office, and Brock D. Nicholson, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Georgia and the Carolinas join U.S. Attorney Tompkins in making today’s announcement.
According to court documents and today’s plea hearing, Anderson, 44, pleaded guilty to one count of making materially false statements to a department or agency of the United States. Court records show that Anderson represented Lonnie Maddox, who is currently facing federal drug charges in South Carolina, stemming from a large-scale cocaine conspiracy. Court records indicate that on five occasions from February 21 to March 15, 2013, Anderson lied to federal agents concerning his knowledge of the whereabouts of two vehicles Maddox had purchased with the illegal proceeds of his drug dealings.
According to the charging documents and information presented in court, Anderson knew where Maddox’s Yukon Denali sport utility vehicle was located, but repeatedly denied this fact to DEA and HSI agents. Anderson further lied to law enforcement about his participation in moving the Denali, which was ultimately recovered at the residence of Anderson’s law partner. Court records also show that Anderson initially lied to federal agents about possessing another one of Maddox’s vehicles, a classic Chevrolet Chevelle. Anderson later admitted to law enforcement that he had in fact possessed the Chevelle but then lied about the location from where he had obtained the vehicle.
“Lawyers are officers of the court, sworn to protect the law and adhere to a professional code of ethics. Anderson’s actions were illegal, unethical but most importantly compromised the integrity of our legal system. Any attorney who puts personal gain above professional responsibility has no business practicing law,” said U.S. Attorney Tompkins.
Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division commented, “Drug trafficking often leads to morally debased actions of those involved, which was the case during this investigation. This attorney was licensed to practice law, but this does not mean that he was above the law. Now, the full measure of the justice system will appropriately deal with his criminal actions. This investigation would have not been possible without the collaborative efforts of our local, state and federal law enforcement counterparts.”
“Mr. Anderson overstepped his role as a zealous advocate for his client, which led him afoul of the law,” said Brock D. Nicholson, Special Agent in Charge of ICE Homeland Security Investigations in Georgia and the Carolinas. “By lying to federal investigators, Mr. Anderson betrayed his responsibilities as an officer of the court and will pay a heavy price for his malfeasance.”
Anderson has been released on bond. At sentencing, he faces a maximum prison term of five years, a $250,000 fine, or both. A sentencing date has not yet been set.
The case was investigated jointly by the DEA and HSI. The prosecution is being handled for the government by Assistant U.S. Attorney J. George Guise of the U.S. Attorney’s Office for the Western District of North Carolina in Charlotte, upon recusal of the U.S. Attorney’s Office for the District of South Carolina.
11 January 2013
White Horse Man Pleads Guilty to Assault ChargeRead the Press Release
U.S. Attorney Brendan V. Johnson announced that Cliff Marshall, Jr., age 35, of White Horse, South Dakota, appeared before U.S. District Judge Roberto A. Lange on January 9, 2013, and pled guilty to an indictment that charged him with Assault Resulting in Serious Bodily Injury. The maximum penalty upon conviction is 10 years' imprisonment, a $250,000 fine or both.
The conviction stems from an incident on June 8, 2012, when Marshall assaulted the victim resulting in serious injuries that required hospitalization. The investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Troy Morley.
A presentence investigation was ordered, and a sentencing date was set for April 1, 2013. The defendant has been ordered to self-report on or before March 1, 2013, to the U.S. Marshal’s Service.
West Hartford Man Who Filed False Tax Returns Is SentencedRead the Press Release
January 11, 2013David B. Fein, United States Attorney for the District of Connecticut, today announced that MICHAEL P. WEINSTEIN, 70, of West Hartford, was sentenced yesterday by United States District Judge Janet C. Hall in New Haven to two years of probation, the first six months of which WEINSTEIN must serve in home confinement, for filing false tax returns. WEINSTEIN also was ordered to pay a fine of $100,000 and to forfeit more than $143,000.
According to court documents and statements made in court, WEINSTEIN lawfully engaged in gambling in Connecticut and elsewhere. In 2009, WEINSTEIN had approximate gambling winnings of $448,400 and gambling losses of $268,990, resulting in net winnings of approximately $179,410. In April 2010, WEINSTEIN signed and filed his 2009 U.S. Individual Income Tax Return, Form 1040, which under reported his income. Consequently, he failed to pay an additional $50,235 in federal taxes that were owed for 2009.
In 2010, WEINSTEIN had approximate gambling winnings of $475,800 and gambling losses of $475,800, resulting in net zero gambling winnings. On his 2010 tax return, WEINSTEIN failed to report his gambling winnings or losses, which affected the Alternative Minimum Tax on his return, and which resulted in his not paying $1,405 in federal taxes.
On October 3, 2012, WEINSTEIN waived his right to indictment and pleaded guilty to one count of filing a false federal income tax return.
As part of the resolution of this case, WEINSTEIN has paid more than $97,000 in back taxes, interest and penalties for the 2009 and 2010 tax years. WEINSTEIN also has forfeited $143,562.46, which the IRS seized in November 2011 from two of WEINSTEIN’s bank accounts pursuant to a court-authorized seizure warrant.
This matter was investigated by the Internal Revenue Service – Criminal Investigation with the assistance of the Stamford Police Department. The case was prosecuted by Assistant United States Attorney Peter S. Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]West Carrollton Man Sentenced for Food Stamp Fraud, Conspiracy and Tax CrimesRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON – Edward “Ed” Claude Jones, 55, of West Carrollton was sentenced to 24 months in prison, 3 years of supervised release, and agreed to a $300,000 money judgment relative to committing conspiracy, food stamp fraud and tax crimes in connection with two businesses in which he was involved, the InBetween Quick Mart in Moraine and Arrow Battery in West Carrollton.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine, and Darryl Williams, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS) announced the sentence handed down by U.S. District Judge Thomas M. Rose.
The Dayton Major Crimes Task Force, which is part of the Ohio Organized Crime Investigations Commission in Attorney General DeWine’s Office, investigated the case.
According to court documents, Jones and others conspired between February 2009 and February 2011 to hide money received from the sale of counterfeit goods or the illegal purchase of Electronic Benefit Transfer “food stamp” cards by cashing 12 checks of more than $10,000 each and failing to file reports required by the Bank Secrecy Act involving large cash transactions.
Jones also filed an income tax return with the IRS using the name “Randy Banker”, a deceased individual, and a Social Security number belonging to an individual in Westerville, Ohio in an effort to conceal income he received.
Stewart commended the cooperative investigation by the task force agencies which include the Internal Revenue Service Criminal Investigation (IRS), the U.S. Department of Agriculture Office of Inspector General – Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Ohio Bureau of Criminal Investigation (BCI), the Ohio Investigative Unit, and the police departments in Centerville, Kettering, West Carrollton, Moraine and Oakwood, and the Tactical Crime Suppression Unit. He also commended Assistant U.S. Attorney Dwight Keller, who prosecuted the case.
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary L. Hatton
www.usdoj.gov/usao/inn/ Fax: (219) 852-2770
South Bend, Indiana -- The United States Attorney’s Office announced today that:
PLEAS:
Brett Keiling , 48, of Granger, Indiana, pled guilty before District Judge Robert Miller, Jr. to the felony offense of threatening to assault an employee of the United States with the intent to interfere with the performance of official duties. Sentencing has been set for 4/15/13.These charges were filed as a result of an investigation by the Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney Barbara Brook.
Jose Nevarez, 36, of South Bend, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of structuring transactions to evade reporting requirements.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. These charges were filed as a result of an investigation by the Internal Revenue Service Criminal Investigation Division.This case is being prosecuted by Assistant United States Attorney William Grimmer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Christopher Peter, 35, of Mishawaka, Indiana, was sentenced by District Judge Jon DeGuilio to 60 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of possession of a firearm in furtherance of a drug trafficking crime.According to documents filed by the government in this case, Peter admitted that he grew marijuana in the garage at his residence located in Mishawaka, Indiana.He had a loaded Hi-Point 9mm semiautomatic pistol that was hidden in the ceiling of the basement which he could easily access. He possessed this firearm in furtherance of possessing and manufacturing marijuana. This case was the result of an investigation by the by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Indiana State Police.This case was prosecuted by Assistant United States Attorney John Maciejczyk.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ FAX (219) 852-2770
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Montell Williams, 33, of Chicago, Illinois, pled guilty before Senior District Judge Rudy Lozano to the felony offense of transporting for prostitution.Sentencing has been set for 4/25/13.These charges were filed as a result of an investigation by the Federal Bureau of Investigation and the Gary Police Department.This case is being prosecuted by Assistant United States Attorney Jill Koster.
Laurie Brezinski, 43, of Schererville, Indiana, pled guilty before District Judge Joseph Van Bokkelen to the felony offenses of embezzlement from a corporation engaged in the business of insurance and filing a false income tax return.Sentencing has been set for 4/4 13.These charges were filed as a result of an investigation by the Internal Revenue Service.This case is being prosecuted by Assistant United States Attorney Jacqueline Jacobs.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Nathaniel Milligan, Jr., 43, of East Chicago, Indiana, a defendant in the case US v Webb et al., was sentenced by District Judge Joseph Van Bokkelen to 51months imprisonment and 4 years of supervised release after pleading guilty to the felony offenses of conspiracy to distribute crack cocaine and conspiracy to distribute marijuana.This case was the result of an investigation by the Drug Enforcement Administration and the East Chicago Police Department.This case was prosecuted by Assistant United States Attorneys Joshua Kolar and Jill Koster.
Kimberlyn Cross, 49, of Gary, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 27 months imprisonment, restitution of $121,600.00 and 1 year of supervised release after pleading guilty to the felony offense of wire fraud.According to documents filed by the government in this case, Cross pled guilty and admitted her role in a scheme to defraud the Indiana Family and Social Services Administration (“FSSA”).Cross ran a fake daycare at the expense of Indiana citizens. Her conduct involved a high level of sophistication – including paying kickbacks to some mothers to gain access to their swipe cards and repeatedly submitting false information to the State giving the impression a daycare operated at her home. In reality, for many months, no daycare existed. Cross used others, including minors, to steal $121,600 from FSSA and $17,683.81 from a business providing food services to FSSA. This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Gary Bell.
Gerardo Lozano, 35, of Hobart, Indiana, was sentenced by Chief Judge Philip Simon to 21 months imprisonment, restitution of $5,136.00 and 1 year of supervised release after pleading guilty to the felony offense of paying a bribe to an agent of local government receiving federal funds.According to documents filed by the government in this case, Lozano formed Greentree Builders in 2006.From 2007 through 2009 Lozano’s business received 1.3 million dollars from East Chicago, the School City of East Chicago and the East Chicago Public Library. In 2008, Lozano provided free home renovations to Frank Ramirez, Treasurer for the School City of East Chicago with the intent to influence Ramirez with respect to contracts issued by the school city of East Chicago, a local government that received more than $10,000 in federal funds during 2008. This case was the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service.This case was prosecuted by Assistant United States Attorney Gary Bell.
Wayne Alan Partin Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on January 11, 2013, before U.S. District Judge Dana L. Christensen, WAYNE ALAN PARTIN, a 52-year-old resident of Butte, appeared for sentencing. PARTIN was sentenced to a term of:
- Prison: 120 months
- Special Assessment: $200.00
- Supervised Release: 10 years
PARTIN was sentenced in connection with his guilty plea to conspiracy to distribute controlled substances and accessing with intent to view child pornography.
In an Offer of Proof filed by Assistant U.S. Attorneys Timothy J. Racicot and Cyndee L. Peterson, the government stated it would have proved at trial the following:
In early August 2011, law enforcement officers in Butte received information about a large quantity of prescription medication located at a local residence. The landlords of the residence evicted the tenants and later found a white, five-gallon bucket and a small lunch cooler that were filled with various pills, and a metal box containing smaller boxes with a white, powdery substance.
The bucket of pills had "Stericycle," a bar code, and an SKU number on it. Stericycle is a medical waste disposal company in Butte. An investigating officer interviewed the manager of Stericycle, who said he was not aware of that particular bucket, but confirmed that one of the former tenants of the above-referenced residence had been employed by Stericycle, though he had been terminated.
On August 16, 2011, agents interviewed both former tenants of the residence where the bucket was found. The tenants reported receiving the bucket from PARTIN and buying drugs from PARTIN for approximately three years, including oxycontin, hydrocodone, morphine, and methamphetamine. The tenants said that PARTIN had stolen the drugs from Stericycle - where he was then employed - and described helping PARTIN move several containers of prescription pills from one residence to another in approximately July 2011.
Also on August 16, 2011, officers from Probation and Parole in Silver Bow County, along with the case agents, conducted a probation search of PARTIN's residence in Butte. During the search, officers seized approximately 61,583 pills (controlled and non-controlled substances), Stericycle storage containers, sharps containers, needles, forceps and other medical waste, handwritten notes that appear to describe and identify pills, books used to identify pills, printed images that appeared to be child pornography, and a computer.
A forensic examiner analyzed the computer and determined that between January 2010 and August 2011, PARTIN searched for and viewed child pornography online. The images depicted minors engaged in sexually explicit conduct. In addition, PARTIN used the computer to conduct searches aimed at identifying various pills and prescription medication.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that PARTIN will likely serve all of the time imposed by the court. In the federal system, PARTIN does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the U.S. Department of Homeland Security - Homeland Security Investigations and the Butte-Silver Bow Law Enforcement Agency.
Virginia Man Sentenced for Trafficking in Counterfeit Gm Diagnostic EquipmentRead the Press Release
WASHINGTON – A Virginia man was sentenced today in federal court to serve one year and one day in prison for selling counterfeit General Motors (GM) automotive diagnostic devices used by mechanics to identify problems with and assure the safety of motor vehicles, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Virginia Neil H. MacBride, FBI Assistant Director Ronald T. Hosko of the Criminal Investigative Division and Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field Office.
Justin DeMatteo, 31, of Saxe, Va., was sentenced by Senior U.S. District Judge Claude M. Hilton in the Eastern District of Virginia, following his Sept. 26, 2012, guilty plea to one count of trafficking in goods bearing counterfeit marks. In addition to his prison term, DeMatteo was sentenced to three years of supervised release and ordered to pay restitution of $328,500 (the full amount of GM’s losses). At DeMatteo’s plea proceeding, the court entered a consent order of forfeiture requiring him to forfeit $109,074 in criminal proceeds and all facilitating property and contraband seized during the execution of search warrants at his business and home on Dec. 15, 2011.
In court documents, DeMatteo admitted he sold counterfeit GM Corporation-branded “Tech 2” vehicle diagnostic systems between January and May 2011. The Tech 2 is a hand-held computer used to diagnose problems in vehicles that use electronic controls and interfaces. For newer vehicles, GM designed a new diagnostic interface – the Controller Area Network diagnostic interface (CANdi) module, which serves as an enhancement to the Tech 2 and completes the interface necessary to communicate with future on-board computer systems.
DeMatteo also admitted he offered for sale purported Tech 2 units and CANdi modules that bore counterfeit GM marks. DeMatteo sold the counterfeit Tech 2 units on eBay and accepted payment via PayPal. DeMatteo purchased the units from unauthorized manufacturers in the People’s Republic of China (PRC) and in many cases had them drop-shipped directly from the PRC to U.S. customers. On Dec. 15, 2011, federal agents executed search warrants at DeMatteo’s residence in Saxe and place of business in South Boston, Va. Among other things, agents seized numerous counterfeit GM Tech 2 units and CANdi modules, and various computer equipment and documents that contained evidence linking DeMatteo to the sale of the counterfeit Tech 2 units. According to the stipulated statement of facts and plea agreement, the number of Tech 2 and CANdi units sold by DeMatteo or seized during the searches totaled nearly 100. The retail price of 100 authentic products would have been more than $380,000.
The case was prosecuted by Assistant U.S. Attorney Lindsay Kelly of the Eastern District of Virginia and Trial Attorney Evan Williams of the Criminal Division’s Computer Crime and Intellectual Property Section and was investigated by the FBI’s Intellectual Property Rights Unit, as part of “Operation Engine Newity,” an international initiative targeting the production and distribution of counterfeit automotive products that impact the safety of the consumer, and the FBI Richmond Division.
The FBI is a full partner at the National Intellectual Property Rights Coordination Center (IPR Center). The IPR Center is one of the U.S. government’s key weapons in the fight against criminal counterfeiting and piracy. The IPR Center uses the expertise of its 19 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to intellectual property (IP) theft. Through this strategic interagency partnership, the IPR Center protects the public’s health and safety, the U.S. economy and the war fighters. To report IP theft or to learn more about the IPR Center, visit www.IPRCenter.gov.
The sentencing announced today was the result of one of many enforcement efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/dag/iptaskforce/.
Valentine Woman Sentenced for Wire FraudRead the Press Release
US Attorney Brendan V. Johnson announced that a Valentine, Nebraska, woman convicted of one count of Wire Fraud and one count of Theft from Gaming Establishment on Indian Lands was sentenced on January 10, 2013, by United States District Judge Roberto A. Lange. Michelle Carrier, age 37, was sentenced to 6 months’ probation, $10,000 in restitution, and $200 to the Victim Assistance Fund.
Between February 1, 2008, and June 30, 2009, Carrier used her position as a payroll clerk for the Rosebud Casino to embezzle funds by manipulating the payroll system in order to pay herself more than what she was entitled to receive. She pled guilty to the charges on October 10, 2012.
The investigation was conducted by the Federal Bureau of Investigation and Rosebud Sioux Tribe Law Enforcement Services. Assistant United States Attorney Marie H. Ruettgers prosecuted the case.
Two Baltimore Women Indicted in Scheme to Use Victims’ Personal Information to Steal Social Security BenefitsRead the Press Release
Allegedly Duped Victims into Providing Their Personal Identifying Information by Claiming That the Victims Had Won the Jamaican National LotteryBaltimore, Maryland - A federal grand jury returned a superseding indictment late yesterday charging Scerena Simpson Genus, age 35, and Doreen Spence, age 50, both of Baltimore, in connection with a scheme to steal social security benefits. The superseding indictment adds a conspiracy count to the original indictment, returned on October 11, 2012.
The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Michael Ryan of the Social Security Administration - Office of Inspector General, Office of Investigations, Criminal Investigations; and Brian Crane, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General.
According to the seven count superseding indictment, from August 2011 to February 2012, co-conspirators in Jamaica called social security beneficiaries (the victims) and informed them that they had won the Jamaican National Lottery. The co-conspirators elicited personal identifying information from the victims, including their names, addresses, social security numbers and dates of birth, by promising to wire lottery winnings to the victims once they provided their personal information. The Jamaican co-conspirators allegedly used the victims’ personal information to apply for Direct Express debit cards in the names of the victims and requested that the victims’ monthly social security benefits be loaded onto the debit cards. The Jamaican co-conspirators provided a mailing address for the cards on Finney Avenue in Baltimore.
The indictment alleges that Spence and Genus received the debit cards at the Finney Avenue house and used the cards to make purchases and cash withdrawals at ATM’s in Maryland. Immediately after Spence had made cash withdrawals from the victims’ debit cards, she allegedly wired funds to the Jamaican co-conspirators. The Jamaican co-conspirators instructed one or more of the victims to wire funds directly to Spence, who then rewired a portion of those funds to the Jamaican co-conspirators.
The defendants face a maximum sentence of five years in prison and a fine of $250,000 for conspiring to commit wire fraud; 10 years in prison and a fine of $250,000 for access device fraud; and a mandatory minimum sentence of two years in prison consecutive to any other sentence on each of five counts of aggravated identity theft. Initial appearances have been scheduled on January 18, 2013 in U.S. District Court in Baltimore. Both defendants are released under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the Social Security Administration - OIG and Department of the Treasury - OIG for their work in the investigation. Mr. Rosenstein praised Special Assistant U.S. Attorney Paul Nitze and Assistant U.S. Attorney P. Michael Cunningham, who are prosecuting the case.
Tulalip Tribal Member Charged in Death of ToddlerRead the Press Release
An enrolled member of the Tulalip Tribes was charged today with second degree murder and two counts of criminal mistreatment related to the October, 2012 death of her young daughter and the neglect of her second daughter, announced U.S. Attorney Jenny A. Durkan. CHRISTINA D. CARLSON will make her initial appearance in U.S. District Court in Seattle at 2:30 today.
CARLSON was transferred to federal custody this morning and the criminal complaint was unsealed. The complaint describes how on October 8, 2012, emergency crews were called to an address on Marine Drive NE on the Tulalip Tribal Reservation where CARLSON was performing CPR on her 19-month-old daughter who was unresponsive on a blanket on the ground. The child was unconscious, not breathing and covered in urine and feces. A second child, a 33-month old girl, was found strapped in her car seat in a nearby vehicle. The child was pale, unresponsive and covered in urine and feces. The girl was transported to the hospital and later recovered. The 19-month old child died and the Snohomish County Medical examiner classified the manner of death as homicide by parental neglect. According to the report the child was malnourished and dehydrated, weighing only 19 pounds. The child’s skin in the diaper area was excoriated and infested with maggots. Her hair was infested with lice.
The investigation revealed that CARLSON had been living in the car with the girls on the property since mid-September. On October 8, 2012 CARLSON had left the girls in the car while she went to use a phone at the residence on the property. CARLSON was away from the car for more than an hour by some estimates. About 20 minutes after the neighbors told her to go back to the car and her children, CARLSON returned asking them to call 9-1-1 because the youngest child was unresponsive.
Second Degree Murder is punishable by up to life in prison. Criminal mistreatment is punishable by up to ten years in prison. The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Tulalip Tribal Police and the FBI.
Staten Island Man Found Guilty in Synthetic Drug CaseRead the Press Release
CHARLOTTESVILLE, VIRGINIA -- A Staten Island man accused of supplying a local video store operator with synthetic drugs commonly known as “bath salts” was found guilty late Thursday evening of a variety of related charges following a four-day jury trial in the United States District Court for the Western District of Virginia in Charlottesville.
Stephen Dominick McFadden, 52, of Staten Island, New York, was indicted in February 2012 on one charge of conspiracy to distribute three separate controlled substance analogues and eight counts of distributing controlled substance analogues. On Thursday evening, a federal jury found the defendant guilty of all nine charges.
“This verdict demonstrates that synthetic drugs, or bath salts, are illegal to buy and sell under federal law,” United States Attorney Timothy J. Heaphy said today. “The analogue statute provides a powerful weapon to prosecute bath salt distribution, and we will use that weapon as part of a broad strategy to reduce the use of these dangerous substances. We must combine our investigation and prosecution of those who traffic synthetic substances with education and inform the public about the volatility of synthetic drugs. People should be aware that use of these substances may place you in federal prison or a hospital.”
According to evidence presented during the four-day trial by Assistant United States Attorney Ronald Huber and Special Assistant United States Attorney and Assistant Commonwealth’s Attorney for the City of Charlottesville, Joe Platania, McFadden was the primary source of bath salts for Lois McDaniel, a local distributor of the drugs and former owner of C-ville Video, the venue from which she, and her employees, sold bath salts. McDaniel previously pleaded guilty to federal drug conspiracy charges associated with her involvement with McFadden.Evidence showed that McDaniel ordered bath salts from McFadden via text messages and the telephone every week or two. After receiving the order, McFadden would overnight ship the bath salts from Staten Island to Charlottesville. The jury heard evidence that McFadden was obtaining these substances from China. After hearing recorded phone calls during the trial, the jury concluded that McFadden and McDaniel were conspiring together to distribute the bath salts. Through other evidence, including expert witness testimony, the jury also found that the bath salts at issue in this case had similar chemical structures to controlled substances. The government also proved that McFadden knew the bath salts he was sending to Charlottesville were for human consumption and produced similar physical effects on users as controlled substances.
In addition to McDaniel, Dustin Wayne Orange, of Charlottesville, previously pleaded guilty to federal charges related to the sale of bath salts. Orange has admitted to selling bath salts while working at C-ville Video.
The investigation of the case was conducted by the Drug Enforcement Administration, the Jefferson Area Drug Enforcement Task Force and the Investigations Division of the Charlottesville Police Department. Assistant United States Attorney Ronald Huber and Special Assistant United States Attorney Joe Platania prosecuted the case for the United States.
St. Francis Man Sentenced for Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, man convicted of Involuntary Manslaughter was sentenced on January 10, 2013, by United States District Judge Roberto A. Lange. Dino Dean Kane, age 23, was sentenced to 40 months in custody, 2 years of supervised release, and a $100 special assessment to the Victim Assistance Fund.
Kane was indicted by a federal grand jury on August 22, 2012, and pled guilty to the charge on October 10, 2012.
The conviction stems from an incident that took place on August 4, 2012, when Kane was driving a motor vehicle recklessly and could not keep the vehicle on the roadway. The victim died from injuries sustained in the crash.
The investigation was conducted by the Federal Bureau of Investigation and Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant United States Attorney Tim Maher.
Kane was remanded to the custody of the United States Marshal.
Southern Illinois Resident Sentenced for Deliberately Defrauding Federal Unemployment Insurance ProgramRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Michael Douglas, 31, of O’Fallon, Illinois was sentenced today in the United States District Court for the Southern District of Illinois, East St. Louis Division for defrauding the unemployment insurance program. Following his plea of guilty on September 17, 2012, to a one-count indictment for Embezzlement of Public Funds, the District Court sentenced Douglas to a 5 month term of incarceration to be followed by a 3 year term of supervised release. Douglas will spend the first 5 months of his supervised release term subject to home confinement. He also was ordered to repay approximately $17,470 in restitution to the Illinois Department of Employment Security and to pay a $100 special assessment.
“Lying and cheating to receive unemployment compensation is a crime,” said United States Attorney Wigginton. “Those who defraud the unemployment insurance program undermine support for an important public program and hurt and insult every law-abiding citizen of Southern Illinois, particularly as public programs face economic crises. I will continue to place a high priority on pursuing those who steal from the United States Treasury.”
At the time of his guilty plea, Douglas admitted to being employed between January 2009 and December 2009 while also filing for and receiving unemployment insurance benefits. In order to receive the benefits, Douglas had to certify, approximately every two weeks, to the Illinois Department of Employment Security (IDES) that he was not working and that he was ready, willing, and able to work. He also had to verify that he was actively seeking work. Douglas was supposed to inform IDES of any income he received during the certification period, but he did not report that he was employed and earning money, instead choosing to collect both wages and benefits simultaneously. Between January and December of 2009 Douglas collected $21,264 in employment insurance benefits to which he was not entitled; however, Douglas repaid some of the money he stole prior to his sentencing, resulting in a lower restitution figure.
This case was investigated by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; the United States Postal Inspection Service; and the Illinois Department of Employment Security. This case was prosecuted by Assistant United States Attorney Katherine L. Lewis.
Six Defendants Indicted in $4.5 Million Mortgage Fraud SchemeRead the Press Release
Defendants Used Sanford Title Services and Shell Companies to Fraudulently Disburse Settlement Proceeds to ThemselvesBaltimore, Maryland - A federal grand jury has indicted six defendants for conspiracy in a $4.5 million mortgage fraud scheme:
- Bonnie Kathleen Kreamer, a/k/a “Bonnie Meehan,” age 47, of Riva, Maryland;
- Niesha Williams, age 33, of Fort Washington, Maryland;
- Rhonda Scott, age 51, of Oxon Hill, Maryland;
- Emeka Udeze, age 37, of Bowie, Maryland;
- Demetrius Peete, age 45, of Manassas, Virginia; and
- Gregory Green, age 49, of Waldorf, Maryland.
The indictment was returned on December 18, 2012 and unsealed today upon the arrests of Kreamer, Peete and Green.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Gene E. Morrison, Washington Field Office, U.S. Department of Justice Office of the Inspector General; Howard County Police Chief William McMahon; Special Agent in Charge Robert Jasinski of the United States Secret Service – Baltimore Field Office; and Howard County State’s Attorney Dario Broccolino.
The indictment alleges that Kreamer worked at Sanford Title Services LLC located at 8900 Snowden River Parkway, Columbia, Maryland. In 2002, her Maryland license to issue title insurance policies was revoked. From June 2008 to January 2010, Kreamer, Williams, Scott, Udeze and Peete allegedly arranged for individuals, including Green, to buy and sell real estate so they could improperly obtain money from the transactions. Kreamer, Williams, Scott, Udeze and Peete are alleged to have created multiple versions of settlement statements to deceive lenders, lien holders, buyers and sellers; and arranged for proceeds from mortgage transactions to be disbursed to shell companies created by the defendants in order to disguise that the money was really for their benefit. Kreamer and Sanford Title failed to make required disbursements of settlement funds to pre-existing lien holders, funneling the money instead to themselves.
According to the indictment, Green, a former contract specialist with the Office of Justice Programs, U.S. Department of Justice, agreed to make false representations to lenders when applying for real estate loans, in return for secretly receiving a portion of the real estate proceeds to use as a down payment and for the monthly mortgage payments.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage-Fraud/index.html.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The defendants face a maximum sentence of 20 years in prison and a $250,000 fine for the conspiracy. An initial appearance has been scheduled today at 3:30 p.m. in U.S. District Court in Baltimore for Kreamer, Peete and Green.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI, Department of Justice - OIG, Howard County Police Department, Secret Service and Howard County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Colleen McGuinn assigned to this case from the Howard County States Attorney’s Office for assisting in this case, and Assistant United States Attorney Harry Gruber, who is prosecuting the case.
Shelton Man Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
January 11, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that ARTHUR GALLOWAY, 38, of Shelton, waived his right to indictment and pleaded guilty today before United States District Judge Janet Bond Arterton in New Haven to one count of receipt and distribution of child pornography.
According to court documents and statement made in court, on March 14, 2012, the Connecticut State Police Computer Crimes Unit, Shelton Police Department, Federal Bureau of Investigation conducted a court-authorized search of GALLOWAY’s residence and seized a laptop computer, an external hard drive and other items. Investigators determined that GALLOWAY used the Internet to trade numerous images and video of child pornography, and he was arrested at that time.
Subsequent forensic analysis of the seized items revealed that GALLOWAY possessed 11 printed photographs, 913 images and 45 videos of children engaging in sexually explicit conduct. Some of the videos exceeded 20 minutes in length.
Judge Arterton has scheduled sentencing for April 17, 2013, at which time GALLOWAY faces a maximum term of imprisonment of 20 years and a fine of up to $250,000.
GALLOWAY has been released on bond under electronic monitoring by the U.S. Probation Office since shortly after his arrest.
This matter is being investigated by the Connecticut State Police Computer Crimes Unit, the Shelton Police Department, the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The case is being prosecuted by Assistant United States Attorney Felice M. Duffy.
The Connecticut Child Exploitation Task Force, which is housed at the main FBI office in New Haven, investigates crimes against children occurring over the Internet, and provides computer forensic review services for participating agencies. For more information about the Task Force, or to report child exploitation crimes, please contact the FBI at 203-777-6311.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Saxe Man Sentenced for Trafficking Counterfeit GM Diagnostic EquipmentRead the Press Release
ALEXANDRIA, Va. – A Virginia man was sentenced today in federal court to serve one year and one day in prison for selling counterfeit General Motors (GM) automotive diagnostic devices used by mechanics to identify problems with and assure the safety of motor vehicles, announced U.S. Attorney for the Eastern District of Virginia Neil H. MacBride, Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, FBI Assistant Director Ronald T. Hosko of the Criminal Investigative Division and Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field Office.
Justin DeMatteo, 31, of Saxe, Va., was sentenced by Senior U.S. District Judge Claude M. Hilton in the Eastern District of Virginia, following his Sept. 26, 2012, guilty plea to one count of trafficking in goods bearing counterfeit marks. In addition to his prison term, DeMatteo was sentenced to three years of supervised release and ordered to pay restitution of $328,500 (the full amount of GM’s losses). At DeMatteo’s plea proceeding, the court entered a consent order of forfeiture requiring him to forfeit $109,074 in criminal proceeds and all facilitating property and contraband seized during the execution of search warrants at his business and home on Dec. 15, 2011.
In court documents, DeMatteo admitted he sold counterfeit GM Corporation-branded “Tech 2” vehicle diagnostic systems between January and May 2011. The Tech 2 is a hand-held computer used to diagnose problems in vehicles that use electronic controls and interfaces. For newer vehicles, GM designed a new diagnostic interface – the Controller Area Network diagnostic interface (CANdi) module, which serves as an enhancement to the Tech 2 and completes the interface necessary to communicate with future on-board computer systems.
DeMatteo also admitted he offered for sale purported Tech 2 units and CANdi modules that bore counterfeit GM marks. DeMatteo sold the counterfeit Tech 2 units on eBay and accepted payment via PayPal. DeMatteo purchased the units from unauthorized manufacturers in the People’s Republic of China (PRC) and in many cases had them drop-shipped directly from the PRC to U.S. customers. On Dec. 15, 2011, federal agents executed search warrants at DeMatteo’s residence in Saxe and place of business in South Boston, Va. Among other things, agents seized numerous counterfeit GM Tech 2 units and CANdi modules, and various computer equipment and documents that contained evidence linking DeMatteo to the sale of the counterfeit Tech 2 units. According to the stipulated statement of facts and plea agreement, the number of Tech 2 and CANdi units sold by DeMatteo or seized during the searches totaled nearly 100. The retail price of 100 authentic products would have been more than $380,000.
The case was prosecuted by Assistant U.S. Attorney Lindsay Kelly of the Eastern District of Virginia and Trial Attorney Evan Williams of the Criminal Division’s Computer Crime and Intellectual Property Section and was investigated by the FBI’s Intellectual Property Rights Unit, as part of “Operation Engine Newity,” an international initiative targeting the production and distribution of counterfeit automotive products that impact the safety of the consumer, and the FBI Richmond Division.
The FBI is a full partner at the National Intellectual Property Rights Coordination Center (IPR Center). The IPR Center is one of the U.S. government’s key weapons in the fight against criminal counterfeiting and piracy. The IPR Center uses the expertise of its 19 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to intellectual property (IP) theft. Through this strategic interagency partnership, the IPR Center protects the public’s health and safety, the U.S. economy and the war fighters. To report IP theft or to learn more about the IPR Center, visit www.IPRCenter.gov.
The sentencing announced today was the result of one of many enforcement efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation, and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state, and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/dag/iptaskforce/.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.San Antonio Man Sentenced to Federal Prison for Ammunition SmugglingRead the Press Release
In San Antonio this morning, United States District Judge sentenced 31-year-old Edward Sandoval to 41 months in federal prison followed by three years of supervised release for purchasing approximately 40,000 rounds of ammunition to be smuggled into the Republic of Mexico, announced United States Attorney Robert Pitman and Homeland Security Investigations Acting Deputy Special Agent in Charge Monica Mapel.
On September 6, 2012, the San Antonio resident pleaded guilty to one count of aiding and abetting the smuggling of goods from the United States. According to the factual basis filed in this case, in January and February 2011, Sandoval admittedly purchased a total of approximately 40,000 rounds of multiple caliber ammunition, including 7.62 caliber and .223 caliber, from a San Antonio gun shop for a friend who informed Sandoval that the ammunition was destined for Mexico via Eagle Pass, Texas. Sandoval further admitted that he was paid $1,500 each time he purchased ammunition for others. In February 2011, authorities in Eagle Pass seized approximately 15,000 rounds of ammunition purchased by Sandoval prior to it being smuggled into Mexico.
This case was investigated by agents with Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Mark Roomberg prosecuted this case on behalf of the Government.
Rosebud Man Pleads Guilty to AssaultRead the Press Release
US Attorney Brendan V. Johnson announced that Kelly Crow Dog, age 27, of Rosebud, South Dakota, appeared before US District Judge Roberto A. Lange on January 10, 2013, and pled guilty to one count of Assault Resulting in Serious Bodily Injury. The maximum penalty upon conviction is 10 years of imprisonment, $250,000 fine, or both.
The charge stems from an incident on August 7, 2012, when Crow Dog argued with the victim, grabbed her hair and shirt, threw her on the ground, placed a knife on her throat, and stabbed her left hand.
The investigation was conducted by the Federal Bureau of Investigation. Assistant United States Attorney Marie H. Ruettgers is prosecuting the case. Crow Dog was released and ordered to self-report on January 14, 2013. A sentencing date has been set for April 8, 2013.
Physician Pleads Guilty to Drug Fraud ChargeRead the Press Release
CONCORD – Douglas McCullom, 52, pled guilty in United States District Court for the District of New Hampshire to one count of fraudulently obtaining controlled substances, announced United States Attorney John P. Kacavas.
According to documents that were filed in United States District Court, McCullom is a doctor of osteopathic medicine who is licensed to practice medicine in Maine. He worked as a physician for the Department of Veterans Affairs in New Hampshire. In 2010, McCullom wrote approximately 17 prescriptions for oxycodone and OxyContin that were not documented in the medical records of one of his patients. Some of these prescriptions were written for the patient after McCullom was placed on worker’s compensation leave. The patient has stated that he later provided some of these pills to McCullom.
McCullom had a registration with the Drug Enforcement Administration (DEA) that allowed him to write prescriptions for controlled substances. As part of his plea agreement, McCullom has agreed to surrender his DEA registration and never to seek another DEA registration. He also must advise the licensing authorities in Maine about his conviction and is scheduled to be sentenced on April 15, 2013.
In November of 2012, McCullom entered into a separate civil settlement agreement to resolve allegations that he violated federal regulations when he issued prescriptions that were not for a legitimate medical purpose and were outside the scope of his DEA registration. While not admitting any wrongdoing, McCullom paid $25,000 to resolve his potential civil liability.
The case was investigated by the Office of Inspector General of the Department of Veterans Affairs and the Drug Enforcement Administration. The Office of Inspector General of the Office of Personnel Management also provided assistance in this investigation. The case was prosecuted by Assistant U.S. Attorney John J. Farley.
Owners of Woodbridge Home Health Business Convicted for Health Care Fraud, Aggravated Identity TheftRead the Press Release
ALEXANDRIA, Va. – The owners of a Woodbridge, Va.-based home health care business have been convicted by a federal jury in Alexandria, Va., for submitting numerous false claims to Medicaid for reimbursement for services they did not provide.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Ken Cuccinelli, Attorney General of Virginia; and Debra Evans Smith, Acting Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the verdict was accepted by United States District Judge Claude M. Hilton.
Irvine Johnston King, 46, and Aisha Rashidatu King, 40, of Woodbridge, were convicted of conspiracy to commit health care fraud, which carries a maximum penalty of 10 years in prison; 22 counts of health care fraud, which each carry a maximum penalty of 10 years in prison; and two counts of aggravated identity theft, which carry a consecutive mandatory penalty of two years in prison. Sentencing is scheduled for March 22, 2013.
According to court records and evidence at trial, the Kings owned and operated Bright Beginnings Healthcare Services, a business that provided in-home personal and respite care and private duty nursing services to Medicaid-eligible individuals. From at least March 2008 through June 2011, the Kings defrauded Medicaid by submitting false claims to Medicaid for services that were not provided, providing fabricated documentation in connection with an audit, and instructing an employee to lie to Medicaid about claims billed by Bright Beginnings. In addition, the Kings instructed an employee to convince a patient’s mother to lie to Medicaid regarding the false claims and asked the parent of a patient to sign blank Medicaid time sheets that were used as a basis to bill Medicaid for services that the Kings knew had not been performed.
The Kings also used – without lawful authority to do so – the name, date of birth, and insurance identification number of a patient on claims seeking reimbursement from Medicaid.
The investigation was conducted by FBI Washington Field Office and the Virginia Attorney General’s Medicaid Fraud Control Unit. Assistant U.S. Attorney Timothy D. Belevetz and Special Assistant U.S. Attorney and Virginia Assistant Attorney General Steven W. Grist of the Virginia Attorney General’s Office are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Owner of Gemstar Capital Group Private Equity Company Pleads Guilty to Role in Approximately $40 Million Ponzi SchemeRead the Press Release
FORT WORTH, Texas — Jeffrey J. Sykes, 54, of San Bernardino County, California, pleaded guilty this morning before U.S. District Judge John McBryde to two counts of securities fraud stemming from a Ponzi scheme he ran in connection with his ownership of Gemstar Capital Group, Inc. (Gemstar), a California-based private equity company. For each count of securities fraud, Sykes faces a maximum statutory penalty of five years in prison, a $250,000 fine and restitution. Sentencing is set for April 26, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Sykes owned and operated Gemstar out of Redlands, California. In 2006, Sykes and “M.K.,” an individual who lived in Westlake, Texas, met at a golf tournament. Sykes told M.K. that Gemstar was a venture capital company interested in investing in emerging growth companies and that Gemstar was looking to supplement its planned venture capital operations by engaging a brokerage firm to assist it in buying and selling U.S. Treasury Bills (T-Bills).
M.K. asked Sykes whether he could participate, and in April 2007, Sykes and M.K. entered into an agreement in which M.K. would solicit investors to participate in the T-Bill trading program described by Sykes. The next month, M.K. formed a limited liability company, known as KCG, and began to solicit investors. Using information Sykes provided, M.K. secured approximately 37 investors who invested approximately $24,617,441. M.K. sent the money, minus fees he withheld for himself, to Gemstar to be invested by Sykes. However, unbeknownst to the investors, neither KCG or Gemstar was engaged in any T-Bill trading program at the time of M.K.’s solicitations.
In addition to the funds that M.K. raised, Sykes personally raised approximately $22,488,539 from investors by making representations about a T-Bill trading program that were materially false or omitted material facts. In fact, none of the money was invested in a T-Bill trading program. Instead, Sykes and M.K. used some of the money for personal expenses. Some of the money was invested in ventures that the investors were unaware of and had not given their consent to participate in. Some of the money was returned to investors, although in some cases, Sykes falsely claimed that the funds represented the return of capital and/or profits from the T-Bill trading program.
Although Sykes used some of the investments he received for personal expenses, to pay partners, and for other purposes, he held a large portion of the invested funds in low-risk money market accounts. Because a substantial portion of the funds received from investors were held in these accounts, investors were able to recover some of their investments.
All told, accounting for payments made to investors during the course of the scheme and money returned to investors after the termination of the scheme, investors collectively lost approximately $12,981,597. This amount includes losses incurred by the investors solicited by M.K., whose funds he subsequently sent to Sykes after taking a fee for himself.
The two counts of securities fraud to which Sykes is pleading specifically stem from false Gemstar account statements that Sykes used to deceive investors about the value of their investments.
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 http://www.stopfraud.gov/.
(The case is being investigated by the U.S. Postal Inspection Service and the FBI. Assistant U.S. Attorney Jay S. Weimer is in charge of the prosecution.