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10 January 2013
Lockport man convicted of drug conspiracy chargeRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Torano Spencer, 37, of Lockport, N.Y., pleaded guilty before U.S. District Court Judge William M. Skretny to conspiracy to distribute cocaine and cocaine base. The drug conspiracy charge carries a maximum penalty of 20 years in prison, a $1,000,000 fine, or both.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that from June 2009 through August 2010, Spencer sold cocaine and cocaine base he purchased from Eric Williams, to other individuals in the Lockport area. Spencer is one of 19 defendants convicted as a result of this drug trafficking investigation. Williams was previously convicted of conspiracy to possess with intent to distribute, and to distribute, kilograms of cocaine, and is scheduled to be sentenced on September 10, 2013.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent- in-Charge Toni M. Weirauch, and the Niagara County Drug Enforcement Task Force, under the direction of Sheriff James Votour.
Sentencing is scheduled for December 3, 2013 at 9:00 a.m. before Judge Skretny.Lincoln County Woman Sentenced to 10 Years in Federal Prison for Armed RobberyRead the Press Release
Mullins used a pistol to rob a Hurricane nursing home of prescription pills and cash from a Lincoln Co. bank
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that a Lincoln County woman was sentenced to 10 years in federal prison for armed robbery of a Hurricane nursing home facility and a Lincoln County bank. Morgan Marie Mullins, 26, of West Hamlin, Lincoln County, W.Va., previously pleaded guilty in August 2012 to interfering with commerce by threats of violence, using and carrying a firearm during and in relation to a crime of violence, and armed bank robbery.
"This case shows in very stark terms the devastating effects of the prescription drug epidemic," said U.S. Attorney Goodwin. "The defendant’s crimes were shocking and now she has ten years to think about the effects of those crimes."
Goodwin continued, “As the Court noted, the significance of this sentencing should also serve as a deterrent.”
Mullins admitted that on May 2, 2012, she robbed the Teays Valley Center nursing home located in Hurricane, W.Va. Mullins further admitted that she used a 9-millimeter pistol when she robbed on-duty employees at the nursing home of controlled substances, including prescription painkillers. The defendant was employed at the nursing home at the time of the robbery.
Also on May 22, 2012, Mullins robbed the City National Bank located in West Hamlin, Lincoln County, W.Va. of $3003 cash. Mullins further admitted that she used the same 9-millimeter pistol for both robberies.
On May 23, 2012, Mullins gave a voluntary statement to law enforcement officers where she admitted to robbing the Teays Valley Center and the City National Bank. Law enforcement officers later recovered the 9-millimeter pistol from beneath the defendant’s bed. Officers also recovered a black hat with red and white stripes with the eye holes cut out of it. The hat was found in an alley near the bank that was robbed in Lincoln County. The defendant admitted that she wore the hat as a disguise during the robberies.
The defendant further admitted that at the time of both robberies and for the past three and a half years, she has been addicted to oxycodone.
The FBI conducted the investigation. Assistant United States Attorney Steven I. Loew handled the prosecution. The sentence was imposed by United States District Judge Thomas E. Johnston.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
This case was also brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime.
Laredo Los Zetas Arms Traffickers Plead GuiltyRead the Press Release
LAREDO, Texas – Pablo Cerda, 36, and Nicolas Sanchez-Reyes, 50, have been convicted for their roles in a conspiracy to export weapons to Mexico destined for Los Zetas drug trafficking organization, United States Attorney Kenneth Magidson announced today. The two Laredoans both entered pleas to one count of conspiracy to export arms.
In November 2010, agents learned of a shipment of weapons to be delivered in Laredo from the Dallas area for transportation to Mexico. Otilo Osorio and Ranferi Osorio were identified as co-conspirators in the Dallas area who were to deliver the weapons to other co-conspirators for transportation to Laredo. Cerda and Sanchez-Reyes were tasked with receiving the shipment of weapons from Dallas in Laredo and arranging for the transportation of said weapons to the Republic of Mexico.
On Nov. 9, 2010, agents set up surveillance at the parking lot area of a Wal-Mart located near I-35 in Lancaster, at which time agents observed a tractor trailer driver meet with Ranferi and Otilio Osorio who arrived in a Ford Explorer. Two large duffel bags believed to contain weapons were removed from the Explorer and placed inside the tractor. Agents then followed the tractor-trailer.
Sanchez-Reyes and Cerda then coordinated the receipt of the weapons for ultimate transportation to Nuevo Laredo. Between Nov. 9 and 10, the men called each other regarding the logistics of the shipment and coordinated the delivery of the weapons in Laredo to another driver secured by Cerda who would transport the weapons to Mexico.
On Nov. 9, Webb County Sheriff’s deputies conducted a traffic stop in Laredo of tractor trailer transporting the weapons. At that time, Sanchez-Reyes called the driver’s phone and a deputy answered the call. Unaware of the situation, Sanchez-Reyes said he was looking for the driver who was supposed to bring him something, at which time the deputy informed the driver could not talk. After the stop, deputies located the two duffle bags and found 40 high-powered firearms consisting of various makes, models and calibers as well as 39 empty magazines. Agents then discovered that 37 of the 40 firearms recovered had obliterated serial numbers. The driver was arrested at the scene.
Sentencing has yet to be set. The defendants will remain in custody pending that hearing.Co-defendants Otilo and Ranferi Osorio were indicted in Dallas and have since pleaded guilty and sentenced to prison.
The case was investigated by agents of the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant United States Attorney Mary Lou Castillo.
Kings Mountain Man Charged with Armed Robbery of Fast Food Chain Restaurant in CharlotteRead the Press Release
CHARLOTTE, N.C. – James William Lewis, Jr., 31, of Kings Mountain, N.C. faces federal charges in connection with the December 12, 2013 armed robbery of a Charlotte area Jack in the Box restaurant, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Tompkins is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Chief Rodney D. Monroe, of the Charlotte-Mecklenburg Police Department.
A federal criminal complaint filed today in U.S. District Court charges Lewis with one count of Hobbs Act robbery. According to the criminal complaint, on December 12, 2013, Lewis entered the restaurant and asked the manager for money while brandishing a weapon. The manager handed Lewis cash and Lewis fled the scene.
Lewis is currently in federal custody. His initial appearance is set for today at 2:00 p.m. before U.S. Magistrate Judge David S. Cayer. The statutory maximum sentence for Hobbs Act robbery is 20 years imprisonment and a $250,000 fine.
The charges contained in the complaint are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The investigation is handled by the FBI and CMPD. The prosecution is being handled for the government by Assistant U.S. Attorney George Guise of the U.S. Attorney’s Office in Charlotte.
Kevin Michael McCarthy 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 10, 2013, before U.S. District Judge Dana L. Christensen, KEVIN MICHAEL McCARTHY, a 55-year-old resident of Missoula, appeared for sentencing. McCARTHY was sentenced to a term of:
- Prison: 160 months concurrent to State of Montana sentence
- Special Assessment: $200.00
- Supervised Release: life
McCARTHY was sentenced in connection with his guilty plea to receipt of child pornography and possession of child pornography.
In an Offer of Proof filed by Assistant U.S. Attorney Cyndee L. Peterson, the government stated it would have proved at trial the following:
On December 30, 2010, a search warrant for McCARTHY's residence was obtained by the Missoula Police Department. Numerous CDs and DVDs along with McCARTHY's computers were seized. A large collection of child pornography (videos and images) was located on 23 of the discs which depicted children engaged in sexually explicit conduct.
A computer forensic examiner analyzed the three computers and located over 2,000 images and 89 videos of child pornography. The files were created between October 2000 and December 2010 and depict children engaged in sexually explicit conduct.
When interviewed, McCARTHY admitted using file sharing programs to download child pornography, specifically prepubescent girls, and admitted to storing the files on DVDs. He also admitted he received sexual gratification while viewing the child pornography.
McCARTHY was also prosecuted by the Missoula County Attorney's Office. He pled guilty to sexual assault for subjecting a child to sexual contact without consent (starting when the child was 5-6-years old) between January 1, 2003, and December 31, 2008. He also pled guilty to sexual abuse of children for possessing visual medium (i.e. videos on his computer) depicting child pornography. McCARTHY was sentenced to 20 years at Montana State Prison with 16 years suspended for the sexual assault charge and to 10 years at Montana State Prison with 6 years suspended (to run concurrently with the first count) for sexual abuse of children. Under Montana law, McCARTHY is parole eligible after serving one-fourth of his full-term of commitment (full term is 4 years, so parole eligible after 1 year). Based on prison records, McCARTHY was parole eligible on November 14, 2012. He was also ordered to complete Phase I and II of the Sexual Offender Program before being considered for parole.
In rare criminal cases it is appropriate for both federal and state charges to be filed against a defendant - the case against Kevin McCarthy is just such a case," said U.S. Attorney Michael W. Cotter. "The sentence imposed by the state criminal justice system, in this case, to this defendant, based on McCarthy's egregious conduct directed at vulnerable children was simply insufficient. All arms of government have a duty to protect the children of Montana from individuals like McCarthy. The sentence imposed by the federal court today ensures such protection to Montana's children."
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that McCARTHY will likely serve all of the time imposed by the court. In the federal system, McCARTHY 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 Missoula Police Department and the Montana Division of Criminal Investigation.
Kaylen Butcher Sentenced to 61 Months in Prison for Armed RobberyRead the Press Release
GREENEVILLE, Tenn. - Kaylen Butcher, 19, of Greeneville, Tenn., was sentenced on Jan. 10, 2013, to serve a total of 61 months in prison by the Honorable Leon Jordan, Senior U.S. District Judge. Upon his release from prison, he will serve five years of supervised release. Butcher was further ordered to pay restitution to the victim of her crime.
Butcher pleaded guilty in September 2012 to the June 2012 robbery by force of the Stop and Go Market in Chuckey. Butcher also pleaded guilty to carrying a firearm in the commission of the robbery. Federal law mandates a five year minimum mandatory sentence for carrying a firearm in the commission of a violent offense. In determining her sentence, the court considered Butcher’s cooperation against Larry Morgan, who was convicted at trial in October 2012, of the armed robberies of the Stop and Go Market and Greeneville Federal Bank. Butcher testified against Morgan at trial.
Law enforcement agencies participating in the joint investigation included the Greeneville Police Department, Greene County Sheriff’s Department, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Johnson City Police Department, Tennessee Bureau of Investigation Crime Lab, and the Sullivan County Sheriff’s Department dive team. Assistant U.S. Attorney J. Gregory Bowman represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
KC Man Sentenced to 15 Years for Illegal FirearmRead the Press Release
Project CeasefireKANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Roderick E. Taylor, 29, of Kansas City, was sentenced by U.S. District Judge Howard F. Sachs to 15 years in federal prison without parole. Taylor was sentenced as a career criminal due to his prior felony convictions.
On Aug. 30, 2012, Taylor pleaded guilty to being a felon in possession of a firearm. Taylor was arrested by Kansas City police officers on Jan. 29, 2012, while driving a stolen vehicle. An officer found a loaded Kel-Tec 9mm semi-automatic handgun, with a live round in the chamber and the safety off, tucked in Taylor’s shoe. The handgun had been stolen from an owner in Independence, Mo.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Taylor has three prior felony convictions for burglary, one prior felony conviction for attempted burglary, and one prior felony conviction for assault on a law enforcement officer.
This case is being prosecuted by Assistant U.S. Attorney Christina Y. Tabor. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Ceasefire
Project Ceasefire, launched in October 1999, is a cooperative initiative by federal and local law enforcement and the Kansas City Crime Commission that targets for federal prosecution persons who unlawfully use or possess firearms.Justice Department Obtains Comprehensive Agreement to Resolve Long Standing Litigation Regarding the Rights of People with Developmental DisabilitiesRead the Press Release
Today, the Justice Department announced that it filed in federal court yesterday afternoon a comprehensive agreement that will resolve long running litigation with the state of Tennessee originally concerning conditions of care at the former Arlington Developmental Center (ADC). On Jan. 15, 2013, the U.S. District Court in Memphis, Tenn., will conduct a hearing to determine whether to approve the agreement. Individuals affected by the agreement are invited to attend the hearing and provide comment to the Court.
Over the 20-year course of the litigation, the state has made significant changes in the delivery of services for a class comprised of former ADC residents and many other individuals who were deemed at-risk of placement at ADC. Tennessee closed ADC in October 2010. The new agreement reaches many of those in the group deemed at risk of placement in ADC prior to its closure.
The agreement resolves remaining issues in the litigation by expanding community-based services so that the state can serve people with developmental disabilities, including intellectual disabilities, in their own homes, their families’ homes or other integrated community settings. The agreement also will provide class members in nursing homes to choice to receive services in integrated, community-based settings. Over the next year, Tennessee will expand community services by providing home and community-based Medicaid waivers to Medicaid-eligible individuals; seeking new and cost-efficient models of care for class members with behavioral needs; and providing supported employment for class members seeking work. This expansion will provide people the opportunity to transition successfully from nursing and other facilities to community settings that can meet their needs and prevent new people from being unnecessarily institutionalized.
“This agreement will provide remaining class members with developmental disabilities in western Tennessee the opportunity to live successfully in their homes and communities and bring this long-standing litigation to an appropriate end,” said Assistant Attorney General Thomas E. Perez. “I commend Governor Haslam for his leadership on this issue, and we will continue to work with states around the country, as we have with Virginia, Georgia, Delaware, North Carolina, and – today – Tennessee, to ensure that people with disabilities are given the choice to live in community-based settings.”
“This is an example of the state of Tennessee making the choice to do what is not only legally right, but right in the grander sense,” said U.S. Attorney Edward L. Stanton III. “Protecting the civil rights of every citizen is a fundamental duty of our office and this agreement does so while preserving the dignity and improving the quality of life for some of our most vulnerable citizens.”
Upon the state’s successful completion of the agreement, the litigation is expected to come to an end. In 1991, the department released a findings letter pursuant to the Civil Rights for Institutionalized Persons Act (CRIPA) detailing conditions at ADC that violated residents’ constitutional rights. The following year the department brought suit to remedy those conditions. The court joined that suit with a separate suit brought by People First of Tennessee concerning ADC and the rights of people at risk of institutionalization at ADC. People First remains active in the case and also is a party to the agreement .
Civil Rights Division staff Jonathan Smith, chief; Shelley Jackson, deputy chief; and senior trial attorneys Jonas Geissler and Michelle Jones, worked on the case and the agreement .
For more information on the Justice Department’s Civil Rights Division, please visit www.justice.gov/crt . If you have any comments or concerns specific to this matter, please feel free to contact the division at1-877-218-5228.
Related Materials:
ADC Agreement
Justice Department Obtains Comprehensive Agreement to Resolve Long Standing Litigation Regarding the Rights of People with Developmental DisabilitiesRead the Press Release
Memphis, TN – Today, the Justice Department announced that it filed in federal court yesterday afternoon a comprehensive agreement that will resolve long running litigation with the state of Tennessee originally concerning conditions of care at the former Arlington Developmental Center (ADC). On Jan. 15, 2013, the U.S. District Court in Memphis, Tenn., will conduct a hearing to determine whether to approve the agreement. Individuals affected by the agreement are invited to attend the hearing and provide comment to the Court.
Over the 20-year course of the litigation, the state has made significant changes in the delivery of services for a class comprised of former ADC residents and many other individuals who were deemed at risk of placement at ADC. Tennessee closed ADC in October 2010. The new agreement reaches many of those in the group deemed at risk of placement in ADC prior to its closure.
The agreement resolves remaining issues in the litigation by expanding community-based services so that the state can serve people with developmental disabilities, including intellectual disabilities, in their own homes, their families’ homes or other integrated community settings. The agreement also will provide class members in nursing homes the choice to receive services in integrated, community-based settings. Over the next year, Tennessee will expand community services by providing home and community-based Medicaid waivers to Medicaid-eligible individuals; seeking new and cost-efficient models of care for class members with behavioral needs; and providing supported employment for class members seeking work. This expansion will provide people the opportunity to transition successfully from nursing and other facilities to community settings that can meet their needs and prevent new people from being unnecessarily institutionalized.
“This agreement will provide remaining class members with developmental disabilities in western Tennessee the opportunity to live successfully in their homes and communities and bring this long-standing litigation to an appropriate end,” said Assistant Attorney General Thomas E. Perez. “I commend Governor Haslam for his leadership on this issue, and we will continue to work with states around the country, as we have with Virginia, Georgia, Delaware, North Carolina, and – today – Tennessee, to ensure that people with disabilities are given the choice to live in community-based settings.”
“This is an example of the state of Tennessee making the choice to do what is not only legally right, but right in the grander sense,” said U.S. Attorney Edward L. Stanton III. “Protecting the civil rights of every citizen is a fundamental duty of our office and this agreement does so while preserving the dignity and improving the quality of life for some of our most vulnerable citizens.”
Upon the state’s successful completion of the agreement, the litigation is expected to come to an end. In 1991, the department released a findings letter pursuant to the Civil Rights for Institutionalized Persons Act (CRIPA) detailing conditions at ADC that violated residents’ constitutional rights. The following year the department brought suit to remedy those conditions. The court joined that suit with a separate suit brought by People First of Tennessee concerning ADC and the rights of people at risk of institutionalization at ADC. People First remains active in the case and also is a party to the agreement.
Civil Rights Division staff Jonathan Smith, chief; Shelley Jackson, deputy chief; and senior trial attorneys Jonas Geissler and Michelle Jones, worked on the case and the agreement.
For more information on the Justice Department’s Civil Rights Division, please visit www.justice.gov/crt. If you have any comments or concerns specific to this matter, please feel free to contact the division at1-877-218-5228.
# # #Justice Department Files Antitrust Lawsuit Against Bazaarvoice <br /> Inc. Regarding the Company’s Acquisition of PowerReviews Inc.Read the Press Release
WASHINGTON – The Department of Justice filed a civil antitrust lawsuit today against Bazaarvoice Inc. challenging the company’s June 2012 acquisition of PowerReviews Inc. The department said that the $168.2 million transaction substantially lessened competition in the market for product ratings and reviews platforms in the United States, resulting in higher prices and diminished innovation.
The department’s lawsuit, filed in the U.S. District Court in the Northern District of California, in San Francisco, seeks to restore the competition that was extinguished by the transaction.
Bazaarvoice’s acquisition of PowerReviews was not reported under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, which requires companies to notify and provide information to the department and the Federal Trade Commission before consummating certain acquisitions. The department began its investigation shortly after the transaction closed.
“Bazaarvoice bought PowerReviews knowing that it was acquiring its most significant rival and hoping to benefit from diminished price competition,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “Without competitive pressure from PowerReviews, Bazaarvoice will be able to increase prices to retailers and manufacturers for its product ratings and reviews platform. This lawsuit seeks to prevent one firm from dominating the product rating and review platforms market, and demonstrates that transactions that are not reported to us are not immune from scrutiny.”
Consumer-generated product ratings and reviews are a ubiquitous part of the online shopping experience and are displayed on retailers’ and manufacturers’ websites. This feature allows consumers to read feedback from authentic product owners before making a purchasing decision. This content is also a valuable asset for retailers and manufacturers because it can increase sales, decrease product returns and provide valuable structured, product-level data about consumer preferences and behavior. Retailers and manufacturers use product ratings and reviews platforms to collect, organize and display consumer-generated product ratings and reviews online.
According to the department’s complaint, Bazaarvoice is the dominant commercial supplier of product ratings and reviews platforms in the United States, and PowerReviews was its closest rival. Before the transaction, PowerReviews was an aggressive price competitor, and Bazaarvoice routinely responded to competitive pressure from PowerReviews. As a result of the competition between Bazaarvoice and PowerReviews, many retailers and manufacturers received substantial price discounts, the department said. As the complaint describes, Bazaarvoice sought to stem competition through the acquisition of PowerReviews. The complaint quotes internal company documents in which senior Bazaarvoice executives describe PowerReviews’s role in the market:
- One of the company’s co-founders noted that the acquisition of PowerReviews would “[e]liminat[e] [Bazaarvoice’s] primary competitor” and provide “relief from [] price erosion;”
- The company’s current chief executive officer wrote that Bazaarvoice had “literally, no other competitors” beyond PowerReviews; and
- The company’s former chief executive officer projected that, as a result of the transaction, Bazaarvoice would have “[n]o meaningful direct competitor.”
The department alleges that the acquisition of PowerReviews has given Bazaarvoice the incentive and ability to raise the price of its product ratings and reviews platform above a competitive level. As a result of the transaction, many customers have lost critical negotiating leverage and are vulnerable to anticompetitive price increases.
Bazaarvoice is a Delaware corporation with its principal place of business in Austin, Texas. In its 2012 fiscal year, Bazaarvoice had revenues of approximately $106 million.
Before the transaction, PowerReviews was a Delaware corporation with its principal place of business in San Francisco. In the 2011 calendar year, PowerReviews had revenues of approximately $11.5 million.
Justice Department Challenges Joint Contracting <br /> on Behalf of Oklahoma ChiropractorsRead the Press Release
WASHINGTON – The Department of Justice announced today that it has reached a settlement that will require the Oklahoma State Chiropractic Independent Physicians Association (OSCIPA) and its executive director to stop jointly determining prices and negotiating contracts with insurers on behalf of competing chiropractors in Oklahoma. The department said that the association and executive director negotiated at least seven contracts with insurers that set prices for chiropractic services on behalf of OSCIPA’s members, and that their conduct caused consumers to pay higher fees for chiropractic services in Oklahoma.The department’s Antitrust Division filed a civil antitrust lawsuit in the U.S. District Court for the Northern District of Oklahoma against OSCIPA and executive director, Larry M. Bridges. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the lawsuit.
“By jointly negotiating fees on behalf of competing chiropractors, the association and its executive director increased the prices that consumers paid for chiropractic services in Oklahoma,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “Today’s settlement promotes competition among Oklahoma chiropractors and prevents the association and its executive director from engaging in illegal conduct that caused consumers to pay more for their health care.”
According to the complaint, OSCIPA–which is comprised of approximately 45 percent of all practicing chiropractors in Oklahoma–and Bridges collectively negotiated the rates and price-related terms for at least seven contracts with insurers on behalf of OSCIPA’s members and required members to suspend their pre-existing contracts with those same insurers. The association and Bridges also required OSCIPA’s members to accept only reimbursements above a certain level and prohibited members from offering insurers incentives or rebates, such as by waiving deductibles. Except for members who were part of the same practice groups, OSCIPA’s members were not clinically or financially integrated, and the association’s and Bridges’ actions were not necessary to achieve any benefits for consumers.
The proposed settlement will prevent the association and Bridges from establishing prices or terms for chiropractic services and from negotiating with insurers on behalf of competing chiropractors. The proposed settlement also will prevent them from attempting to facilitate joint negotiations and from communicating with chiropractors about any aspect of pricing or contracting.
The Oklahoma State Chiropractic Independent Physicians Association is headquartered in Tulsa, Okla. Bridges has been employed by OSCIPA as its executive director since at least 1999.
The proposed settlement, along with the department’s competitive impact statement, will be published in the Federal Register as required by the Antitrust Procedures and Penalties Act. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Peter J. Mucchetti, Chief, Litigation I Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 4100, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon finding that it serves the public interest.
Johnstown Felon Illegally Possessed PistolRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., pleaded guilty in federal court to a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.
George A. Robinson, 22, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on May 10, 2011, Robinson possessed a Taurus PT111 Millennium Pro 9mm pistol. On August 27, 2009, Robinson was convicted in Cambria Co., Pa., of criminal attempt burglary, which is a crime punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms or ammunition.
Judge Gibson scheduled sentencing for June 10, 2013, at 10:30 a.m. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Johnstown Police Department conducted the investigation that led to the prosecution of Robinson.
According to Mr. Hickton, Robinson is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
Jefferson County and Bullitt County Residents Guilty in Conspiracy to Distribute OxycodoneRead the Press Release
– Obtained illegal prescription pain pills from Florida “pill mills”
LOUISVILLE, Ky. – Two more defendants charged in a conspiracy to distribute oxycodone in Jefferson County and Bullitt County, Kentucky pleaded guilty in United States District Court this week announced David J. Hale, United States Attorney for the Western District of Kentucky. Teresa Sandlin, age 49, and Jerry Sandlin, age 43, both from Louisville, entered guilty pleas before U.S. District Judge John G. Heyburn II, on January 7, 2013.
According to information provided in multiple plea agreements, between January 2009 and February 2012 the ten defendants traveled to a minimum of one pain clinic in Florida and obtained prescriptions for oxycodone and/or oxycodone tablets and returned with the ill-gotten medications to the Western District of Kentucky where they distributed, individually, between 5.13 and 19.23 grams of the prescription pain medication.
"The illicit sale of prescription pain medications is one of the greatest health and safety threats to our families and our communities,” stated U.S. Attorney David J. Hale. “Fighting the scourge of illicit prescription drugs is a priority of my office, and I applaud the efforts of the Drug Enforcement Administration and our state and local partners for their efforts in pursuing Kentucky drug dealers and shutting down the source of their supply.”
All ten defendants were charged with a single count of conspiracy to distribute a controlled substance in a federal grand jury indictment returned on June 22, 2011. Between May 7, 2012 and January 7, 2012 all but one of the ten defendants has entered a guilty plea in U.S. District Court. Two defendants were charged in a second count with money laundering. Those charged along with Teresa Sandlin and Jerry Sandlin were Mark Wolfe, 30 of Louisville; Steven Breeding, 26 of Bullitt County; Whitney Summitt, 22 of Louisville; Crystal Summitt, 30 of Louisville; Robert Randolph, 34 of Louisville; Michael Johnston, 34 of Louisville; Bobbie Maddox, 50 of Louisville; and Tylena Randolph, 58 of Louisville. Randolph entered a not guilty plea and has a status conference scheduled in March before Judge Heyburn.
According to the investigation by Drug Enforcement Administration (DEA) agents working in Louisville and the Southern District of Florida, the prescriptions were obtained from so called pain clinics located in Broward and Palm Beach counties. In August, 2011 a grand jury charged 32 defendants, associated with these pain clinics, with operating “pill mills.” (USA v. George et al.) All but four of the defendants have entered guilty pleas and the clinics were closed.
Teresa Sandlin and Bobbie Maddox plead guilty to a separate charge of money laundering for conspiring to conduct an unlawful financial transaction between December, 2009 and January, 2010. According to the plea agreement, Sandlin and Maddox took approximately $75,000.00 in U.S. currency, which were proceeds from count one’s drug trafficking charge, from Louisville, Kentucky to Jeffersonville, Indiana and presented it as a partial payment at the closing for the purchase of property in Shepherdsville, located in Bullitt County, Kentucky. Sandlin and Maddox presented a fraudulent gift letter which stated that Glenn Dovak, alleged to be Maddox’s uncle, had given Maddox the $75,000.00 in U.S. currency as a gift. The fraudulent gift letter was dated as being signed on January 5, 2010, but death records show Dovak had died on February 22, 2007.
At sentencing the defendants face a maximum 20 year term in prison, a maximum fine of one million dollars and supervised release of at least three years and up to any number of years, including life. Maddox and Teresa Sandlin face an addition 20 year term in prison and an additional $500,000.00 dollar fine for count two of the federal indictment.
This case is being prosecuted by Assistant United States Attorney Laura Hall and is being investigated by the United States Drug Enforcement Administration (DEA).
###In Oregon's First Trial on Charges of Distribution of Heroin Resulting in Death, Defendant Found Guilty of Distributing Heroin that Resulted in the Death of a 17 Year Old Milwaukie High School StudentRead the Press Release
PORTLAND, Ore. - On January 10, 2013, U.S. District Judge Robert E. Jones found Aleksey Dzyuba, 43, of Milwaukie, Oregon, guilty of distributing heroin on March 31, 2011 to 17-year-old Toviy Sinyayev. After ingesting the heroin, Toviy lapsed into a coma and three days later died, shortly after being removed from life support at Doernbechers Childrens Hospital. The charges against Dzuyba were brought under a federal statute that enhances the penalty for drug distribution to a maximum sentence of life and a mandatory minimum sentence of 20 years, if the use of the drugs results in the death or serious physical injury of another person. Federal cases have been prosecuted under this statute in Oregon since 2004 resulting in approximately 30 convictions pursuant to guilty pleas. In addition to Dzyuba's case, approximately 25 defendants are currently pending heroin distribution-resulting-in-death charges in the District of Oregon under the same statute. The case of U.S. v. Dzyuba is the first heroin overdose case to go to trial in the District of Oregon.
The federal charges stem from an investigation led by local law enforcement agencies including the Milwaukie Police Department, the Clackamas County Inter-Agency Task Force with the assistance of the Clackamas County District Attorney's Office.
"While the defendant's conviction will never account for the tragic loss of this young life, it does bring us some sense of Justice" said U.S. Attorney Amanda Marshall. "Sadly, this is only one of a growing number of opiate overdoses in Oregon. The judgment of the court in this case should serve as a deterrent to other purveyors of this deadly drug. The message should be clear: if you are anywhere in the chain of supply of a drug that leads to death, you are responsible for that loss of life and you will be held to account."
Milwaukie Police Chief Bob Jordan said, "Today's finding of guilty against Aleksey Dzyuba sends the important message that criminals who traffic in heroin will be held accountable for the human tragedy they cause. This case embodies the level of federal-local cooperation needed to bring these criminals to justice."
The case is being prosecuted by Assistant U.S. Attorney Kathleen Bickers and Special Assistant United States Attorney Steve Mygrant.
Georgia Men Plead Guilty to Bribing Official to Secure Government ContractsRead the Press Release
WASHINGTON – Two men employed by a machine products vendor in Albany, Ga., have pleaded guilty to bribing a public official working for a military organization at the Marine Corps Logistics Base Albany (MCLB-Albany) to secure contracts for machine products, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia.
Thomas J. Cole Jr., 43, and Fredrick W. Simon, 55, both of Albany, each pleaded guilty before U.S. District Judge W. Louis Sands in the Middle District of Georgia to one count of bribery of a public official.
During their guilty pleas, Cole, the general manager of an Albany-based machine products vendor, and Simon, an employee responsible for processing sales orders, admitted to participating in a scheme to secure sales order contracts from the Maintenance Center Albany (MCA) at MCLB-Albany by subverting a competitive bid process. The MCA is responsible for rebuilding and repairing ground combat and combat support equipment, much of which has been utilized in military missions in Afghanistan and Iraq, as well as other parts of the world. To accomplish the scheme, Cole and Simon bribed a MCA purchase tech responsible for placing machine product orders. Cole and Simon admitted to participating in the scheme at the purchase tech’s suggestion, after Simon had spoken with the purchase tech about how his company could obtain business from the MCA. Cole and Simon admitted that, at the purchase tech’s request, they paid the purchase tech a bribe of at least $75 for each of the more than 1,000 sales orders MCA placed with their company. According to court documents, the purchase tech would transmit sales bids to Simon and then communicate privately to him exactly how much money the company should bid for each particular order. Cole and Simon admitted that these orders were extremely profitable, often times exceeding the fair market value of the machine products, sometimes by as much as 1,000 percent.
Cole and Simon further admitted that, at the purchase tech’s urging, in 2011 they began routing some orders through a second company, owned by Cole, because the volume of orders MCA placed with the first company was so high. They also admitted that the purchase tech increased the bribe required for orders as the scheme progressed. Cole and Simon admitted to paying the purchase tech approximately $161,000 in bribes during the nearly two-year scheme. Cole admitted to personally receiving approximately $209,000 in proceeds from the scheme; Simon admitted to personally receiving approximately $74,500. Both admitted that the total loss to the Department of Defense from overcharges associated with the machine product orders placed during the scheme was approximately $907,000.
At sentencing, Cole and Simon each face a maximum penalty of 15 years in prison and a fine of not more than twice the pecuniary loss to the government. As part of their plea agreements with the United States, Cole and Simon both agreed to forfeit the proceeds they received from the scheme, as well as to pay full restitution to the Department of Defense. Sentencing has not yet been scheduled.
The case is being prosecuted by Trial Attorneys Richard B. Evans and J.P. Cooney of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia. The case is being investigated by the Naval Criminal Investigative Service, with assistance from the Dougherty County District Attorney’s Office Economic Crime Unit and the Defense Criminal Investigative Service.
Georgia Men Plead Guilty to Bribing Official to Secure Government ContractsRead the Press Release
WASHINGTON – Two men employed by a machine products vendor in Albany, Ga., have pleaded guilty to bribing a public official working for a military organization at the Marine Corps Logistics Base Albany (MCLB-Albany) to secure contracts for machine products, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia.
Thomas J. Cole Jr., 43, and Fredrick W. Simon, 55, both of Albany, each pleaded guilty before U.S. District Judge W. Louis Sands in the Middle District of Georgia to one count of bribery of a public official.
During their guilty pleas, Cole, the general manager of an Albany-based machine products vendor, and Simon, an employee responsible for processing sales orders, admitted to participating in a scheme to secure sales order contracts from the Maintenance Center Albany (MCA) at MCLB-Albany by subverting a competitive bid process. The MCA is responsible for rebuilding and repairing ground combat and combat support equipment, much of which has been utilized in military missions in Afghanistan and Iraq, as well as other parts of the world. To accomplish the scheme, Cole and Simon bribed a MCA purchase tech responsible for placing machine product orders. Cole and Simon admitted to participating in the scheme at the purchase tech’s suggestion, after Simon had spoken with the purchase tech about how his company could obtain business from the MCA. Cole and Simon admitted that, at the purchase tech’s request, they paid the purchase tech a bribe of at least $75 for each of the more than 1,000 sales orders MCA placed with their company. According to court documents, the purchase tech would transmit sales bids to Simon and then communicate privately to him exactly how much money the company should bid for each particular order. Cole and Simon admitted that these orders were extremely profitable, often times exceeding the fair market value of the machine products, sometimes by as much as 1,000 percent.
Cole and Simon further admitted that, at the purchase tech’s urging, in 2011 they began routing some orders through a second company, owned by Cole, because the volume of orders MCA placed with the first company was so high. They also admitted that the purchase tech increased the bribe required for orders as the scheme progressed. Cole and Simon admitted to paying the purchase tech approximately $161,000 in bribes during the nearly two-year scheme. Cole admitted to personally receiving approximately $209,000 in proceeds from the scheme; Simon admitted to personally receiving approximately $74,500. Both admitted that the total loss to the Department of Defense from overcharges associated with the machine product orders placed during the scheme was approximately $907,000.
At sentencing, Cole and Simon each face a maximum penalty of 15 years in prison and a fine of not more than twice the pecuniary loss to the government. As part of their plea agreements with the United States, Cole and Simon both agreed to forfeit the proceeds they received from the scheme, as well as to pay full restitution to the Department of Defense. Sentencing has not yet been scheduled.
The case is being prosecuted by Trial Attorneys Richard B. Evans and J.P. Cooney of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia. The case is being investigated by the Naval Criminal Investigative Service, with assistance from the Dougherty County District Attorney’s Office Economic Crime Unit and the Defense Criminal Investigative Service.
Gene Kristy Guardipee Jr. Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on January 9, 2013, before U.S. District Judge Dana L. Christensen, GENE KRISTY GUARDIPEE, JR., a 35-year-old resident of Browning and an enrolled member of the Blackfeet Tribe, appeared for sentencing. GUARDIPEE was sentenced to a term of:
- Prison: 87 months
- Special Assessment: $300.00
- Supervised Release: 5 years
GUARDIPEE was sentenced in connection with his guilty plea to sexual abuse of a minor, receipt of child pornography, and possession of child pornography.
In an Offer of Proof filed by Assistant U.S. Attorney Ryan G. Weldon, the government stated it would have proved at trial the following:
GUARDIPEE met the victim when she was 9-years-old. The victim introduced herself to many within GUARDIPEE's family and, while GUARDIPEE was present, stated that she was 9-years-old.
Approximately three years later, the victim kissed GUARDIPEE. The victim was 12-years-old at the time. Then, on the victim's thirteenth birthday, GUARDIPEE had sex with her. The victim explained that she remembered the day because it was both her birthday and a special day for her. This relationship continued for the next year. The victim stated that she had sex with GUARDIPEE many times over a one-year period. All of the sex occurred in Browning, which is on the Blackfeet Indian Reservation. During the sexual relationship, GUARDIPEE was 34 and 35-years-old.
The victim also disclosed that she sent naked pictures of herself to GUARDIPEE. A search warrant was subsequently obtained for GUARDIPEE's cell phone, which law enforcement found on GUARDIPEE when they arrested him. Pictures of the victim, and other minors, were found on GUARDIPEE's cell phone. These pictures were nude pictures, and many of them focused on the vaginal area of the minors. These pictures constituted and contained child pornography. All of the child pornography was received and saved on GUARDIPEE's phone. The photos had been received by GUARDIPEE between November of 2011 and March of 2012.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that GUARDIPEE will likely serve all of the time imposed by the court. In the federal system, GUARDIPEE 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 conducted by the Federal Bureau of Investigation.
Four Defendants Indicted for Committing A Home Invasion Robbery Dressed as Police OfficersRead the Press Release
SAN FRANCISCO – Four Northern California residents were charged by a federal grand jury in San Francisco with robbery affecting interstate commerce, conspiracy to commit robbery affecting interstate commerce, possession of a firearm in furtherance of the robbery, conspiracy to possess with the intent to distribute marijuana, impersonating an officer and making a search or arrest while impersonating an officer, United States Attorney Melinda Haag announced.
Michael Puckett, 45, of Petaluma, Calif., made his initial appearance in federal court this morning and has been detained. He is next scheduled to appear in court tomorrow for identification of counsel. Terry Jacksen, 46, also of Petaluma, Eric Mendonca, 43, of Lake County, Calif., and Jack Pollack, 54 of Lake County, made their initial appearances yesterday. Mendonca was released on a $50,000 bond. Jacksen and Pollack remain in custody.
According to the indictment and criminal complaint, the defendants conspired to commit a home invasion robbery in Lake County, Calif., on Oct. 4, 2012. On that date, Pollack cased a residence before Jacksen, dressed up as a Lake County Sheriff’s Office Deputy carrying a holstered revolver and wearing a white cowboy hat, knocked on the door and informed the occupants that he was working with the Bureau of Alcohol, Tobacco, Firearms and Explosives and was there to conduct a search. Jacksen then handcuffed and zip-tied the occupants before searching the house and stealing 48 marijuana plants. The complaint alleges that Eric Mendonca, a former Petaluma Police Officer and Lake County Sheriff’s Office Deputy, provided Jacksen with the police uniforms. During a search of Mendonca and Jacksen’s property on Dec. 19, 2012, law-enforcement authorities located a holstered revolver, a set of Lake County Sheriff’s Office handcuffs, a white cowboy hat, various firearms and a cellular telephone containing images of Jacksen and Puckett posing in Lake County Sheriff’s Office uniforms with firearms hours before the robbery. A search of Pollack’s residence uncovered approximately twenty pounds of marijuana.
The charges and the possible prison sentence each defendant faces are as follows:
Jacksen
- One count of conspiracy to commit robbery affecting interstate commerce: 20 years for each count
- One count of robbery affecting interstate commerce: 20 years
- One count of possession of a firearm in furtherance of robbery: Life, with a mandatory consecutive minimum term of five years
- One count of conspiracy to distribute or possess with the intent to distribute marijuana: five years
- One count of impersonating an officer: three years
- One count of making a search while impersonating an officer: three years
- One count of felon in possession of a firearm: 10 years
Mendonca
- One count of conspiracy to commit robbery affecting interstate commerce: 20 years for each count
- One count of robbery affecting interstate commerce: 20 years
- One count of possession of a firearm in furtherance of robbery: Life, with a mandatory consecutive minimum term of imprisonment of five years
- One count of conspiracy to distribute or possess with the intent to distribute marijuana: five years
- One count of impersonating an officer: three years
- One count of making a search while impersonating an officer: three years
Pollack
- One count of conspiracy to commit robbery affecting interstate commerce: 20 years for each count
- One count of robbery affecting interstate commerce: 20 years
- One count of possession of a firearm in furtherance of robbery: Life, with a mandatory consecutive minimum term of imprisonment of five years
- One count of conspiracy to distribute or possess with the intent to distribute marijuana: five years
- One count of impersonating an officer: three years
- One count of making a search while impersonating an officer: three years
- One count of felon in possession of a firearm: 10 years
- One count of possession with the intent to distribute methamphetamine: 40 years, with a five year mandatory minimum
- One count of possession with the intent to distribute marijuana: five years
Puckett
- One count of conspiracy to commit robbery affecting interstate commerce: 20 years for each count
- One count of robbery affecting interstate commerce: 20 years
- One count of possession of a firearm in furtherance of robbery: Life, with a mandatory consecutive minimum term of imprisonment of five years
- One count of conspiracy to distribute or possess with the intent to distribute marijuana: five years
- One count of impersonating an officer: three years
- One count of making a search while impersonating an officer: three years
Each of the defendants pled not guilty to the charges. They are scheduled to appear in federal court in San Francisco at 2 p.m. on Jan. 22, 2012 before United States District Court Judge William Alsup.
Assistant United States Attorney Randy Luskey is prosecuting the case with the assistance of Daniel Charlier-Smith. The prosecution is the result of a joint investigation by the Lake County Sheriff’s Office and the Federal Bureau of Investigation’s Santa Rosa Resident Agency.
Please note, an indictment contains only allegations against an individual and, as with all defendants, those named herein must be presumed innocent unless and until proven guilty.
(Terry Jacksen et al indictment )
Fort Pierre Man Pleads Guilty to Drug ChargeRead the Press Release
US Attorney Brendan V. Johnson announced that Dalton Mollard, age 20, of Fort Pierre, appeared before US District Judge Roberto A. Lange on January 10, 2013, and pled guilty to one count of the indictment that charged him with Distribution of a Controlled Substance. The maximum penalty upon conviction is 5 years of imprisonment, a $250,000 fine, or both.
The charge stems from an incident on April 4, 2012, when Mollard knowingly and intentionally distributed marijuana, a Schedule I controlled substance, to others.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, and Assistant US Attorney Kathryn N. Rich is prosecuting the case. Mollard was remanded to the custody of the US Marshal pending sentencing. A sentencing date has been set for March 25, 2013.
Former Xpress Flex, Inc. and Payroll America, Inc. Owner Sentenced to 51 Months for Fraud and Filing A False Tax ReturnRead the Press Release
Ordered to Pay Restitution of Nearly $1 Million to Victims
BOISE – Michael Wayne Davis, II, 46, of Raleigh, North Carolina, formerly of Eagle, Idaho, was sentenced yesterday to 51 months in prison for wire fraud and filing a false tax return, U.S. Attorney Wendy J. Olson and Assistant Attorney General for the Justice Department's Tax Division Kathryn Keneally announced. Chief U.S. District Judge B. Lynn Winmill also ordered Davis to serve three years of supervised release following his prison term and pay $999,930.90 in restitution – $954,640.90 to Xpress Flex victims and $45,290 to the IRS for the tax loss. Davis pleaded guilty to the charges on September 10, 2012.
According to court documents, in 2009 and 2010, Davis owned and operated Xpress Flex, Inc., a Boise, Idaho, company that administered, on behalf of employer-clients, flexible benefits plans for tax-free, qualified benefits, such as health care and dependent care. Pursuant to those plans, Xpress Flex received monetary contributions from its employer-clients of pre-tax withholdings from their employees’ paychecks. These funds were deposited into Xpress Flex bank accounts and set aside to pay the claims of employee-participants when they came due. According to court documents, Davis misappropriated $954,640.90 of Xpress Flex client funds and used them to pay personal credit card charges and the business expenses of his other company, Payroll America, Inc. He did so without the knowledge or authorization of the employer-clients and their employees, and contrary to representations in plan documents and contracts that he would safeguard the deposits and use them only to pay employee claims.
Court documents also showed that from 1994 through 2009, Davis owned and operated Payroll America in Boise, Idaho. Payroll America provided payroll administration and payroll tax filing services to its employer-clients. Pursuant to contract documents, employer-clients would deposit sufficient funds with Payroll America to meet their payroll and payroll tax obligations, which Payroll America would pay when they came due. According to court documents, in March and April of 2007, Davis misappropriated $2 million of Payroll America employer-client funds, wired them into his E*Trade brokerage account, and then invested the funds in the stock market. Davis did so without the knowledge or authorization of the employer-clients of Payroll America, contrary to representations in contract documents that he would safeguard the funds and use them only to pay payroll and payroll taxes.
Davis’ E*Trade investments generated approximately $192,436 in capital gains income. According to court documents, Davis wired this money into his and his wife’s personal checking account. The wire transfer was annotated “E-Trade Gains.” However, Davis intentionally failed to report capital gains income from E*Trade investments on his 2007 or 2008 tax returns, causing a tax loss of $45,290. For this conduct, Davis pleaded guilty to one count of filing a false tax return.
“I’m very pleased that my office, with the assistance of the Justice Department’s Tax Division, and federal law enforcement partners were able to bring Mr. Davis to justice,” said Olson. “Those who are entrusted to manage others’ money must ensure that it is safe and available for its intended purpose, not diverted for personal gain.”
“This sentencing sends a clear message, businesses owners who misuse their positions of trust and divert funds for their own personal use will be held accountable,” said Lilia E. Ruiz, IRS Criminal Investigation Acting Special Agent in Charge for the State of Idaho.
The case was investigated by the Federal Bureau of Investigation, the U.S. Department of Labor, Employee Benefits Security Administration, and Internal Revenue Service-Criminal Investigation.
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 Staff Sergeant Sentenced for Stealing Public Money Earmarked for Her Military UnitRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today NANCY NICOLE SMITH, 27, of Columbia, South Carolina, was sentenced by United States District Judge Louise W. Flanagan to 20 months imprisonment, restitution of $100,000, and 3 years of supervised release. SMITH previously pled guilty to theft of government money in violation of Title 18, United States Code, Section 641, and to bulk cash smuggling in violation of Title 31, United States Code, Section 5332.
Mr. Walker stated, “SMITH abused a position of trust and betrayed the trust of the American taxpayers, including her fellow service members, when she stole $100,000 of U.S. funds earmarked for her military unit. The sentence imposed today reflects the seriousness of her offense and should serve as a deterrent for others.”
According to the Criminal Information filed on August 2, 2012, and information in the public record, SMITH was a Staff Sergeant in the United States Army assigned to a Personnel Service Battalion attached to the 7th Special Forces Group based at Fort Bragg, North Carolina. From September 2009 through February 10, 2010, SMITH was deployed to Afghanistan with the 7th Special Forces Group. While deployed, SMITH was a disbursing agent responsible for, among other things, disbursing money and reconciling the books and records. On at least two occasions, SMITH falsified documents in order to steal $100,000 from funds earmarked for her military unit. She thereafter brought the stolen monies, which at the time were concealed in her backpack, back to the United States.
"Nancy Smith stole money intended for urgent projects in a combat zone, betraying her oath and our armed forces. Special Inspector General for Afghan Reconstruction (SIGAR) and our investigative partners are making it clear that those who defraud the U.S. government will be brought to justice," said Special Inspector General John F. Sopko.
"We are very pleased with today's sentencing," said Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. "Stealing money during a time of war that is intended for such an important cause is reprehensible and we will continue to do everything in our investigative power to bring those responsible to justice."
“By stealing money from her U.S. Army unit while deployed to a combat theater, (former) Staff Sergeant Smith betrayed her position of trust for personal greed and deprived her fellow soldiers of much needed funds. The Defense Criminal Investigative Service continues our aggressive efforts to root out corruption and fraud impacting our Warfighters, and recover stolen taxpayer dollars,” commented Special Agent in Charge John F. Khin, DCIS Southeast Field Office.
Investigation of this case was conducted by the Department of Defense Criminal Investigative Service, the Federal Bureau of Investigation, the Office of the Special Inspector General for Afghanistan Reconstruction, and the United States Army Criminal Investigation Command. Assistant United States Attorney Banumathi Rangarajan is serving as prosecutor for the government.
Former Jackson, Missouri Tax Preparer Indicted for Tax FraudRead the Press Release
St. Louis, MO - Cynthia M. Raymond was indicted on multiple fraud counts involving her preparation of 98 false tax returns under the names of 36 clients for the tax years of 2007 through 2010. The indictment alleges that these tax returns under reported taxes in cumulative amounts in excess of $300,000.
According to the indictment, Raymond included false deduction on the returns which resulted in excessive and unlawful refunds. She provided her clients with a different tax return than what was filed with the IRS. The tax refund listed on the tax return Raymond provided to her clients matched the tax refund deposited to their account. She then electronically filed the false tax returns which generated the payment of false refunds which she had directed to her own account. It is alleged that Raymond received $103,000 of direct deposits into her account from the false refunds.
The indictment charges a separate criminal act in which Raymond used the name and social security number of a Jackson-area resident to prepare a completely fabricated tax return for 2009. According to the indictment, Raymond directed the false refund from that return in the amount of $1075 into her own account.
CYNTHIA M. RAYMOND, Kansas City, KS, formerly of Jackson, MO, was indicted Wednesday by a federal grand jury on three felony counts of making and filing a false tax return, six felony counts of aiding and assisting in making false tax returns and one felony count of identity fraud. She was arrested by federal agents earlier today at her residence in Kansas City.
If convicted, each of the tax counts carry a maximum penalty of three years in prison and/or fines up to $100,000; identity theft carries a maximum of five years and/or $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by Internal Revenue Service-Criminal Investigation. Assistant United States Attorney James E. Crowe, Jr., is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Former Hedge Fund Principal Pleads Guilty in Manhattan Federal Court to Stealing over $1 MillionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that BERTON HOCHFELD, the former Manager of Hochfeld Capital Management, L.L.C. (“Hochfeld Capital”), pled guilty today in Manhattan federal court to securities fraud and wire fraud charges in connection with an investment scheme in which he stole more than $1 million from investors. HOCHFELD pled guilty before U.S. District Judge Paul A. Crotty.
Manhattan U.S. Attorney Preet Bharara said: “Berton Hochfeld may have had all the trappings of being a sophisticated investment adviser in control of a limited liability corporation, a partnership and a hedge fund, but at the end of the day he was simply a thief who stole money from the investors who trusted him. Investment fraud is a serious offense that damages investor confidence and the markets, and we will continue to prosecute it aggressively.”
According to the charging instruments in this case and statements made in open court today at the plea proceeding:
HOCHFELD was the Manager and organizer of Hochfeld Capital, a limited liability company incorporated in Delaware that, at various times, maintained an office in New York, New York. Hochfeld Capital, in turn, served as the General Partner of the Heppelwhite Fund, L.P. (the “Heppelwhite Fund”), a hedge fund that was formed to invest in publicly traded securities, mainly in the technology sector. In connection with the management of the Heppelwhite Fund, HOCHFELD made false representations to investors regarding their investments, and misappropriated their money.
For example, by December 2010, HOCHFELD was aware that Hochfeld Capital’s internal accounting for the Heppelwhite Fund reflected an inflated net asset value (“NAV”), as compared to the value reflected in the books of the prime broker where the fund’s assets were actually located. Despite his knowledge of the disparity, HOCHFELD caused monthly statements to be sent to Heppelwhite Fund investors that reflected the inflated NAV calculated by internal accounting records.
From April 2011 through October 2012, HOCHFELD also withdrew money from the Heppelwhite Fund for his own personal use, ultimately misappropriating more than $1 million. During this period, at HOCHFELD’s direction, monthly account statements were provided to Heppelwhite Fund investors that falsely represented the fund’s value by failing to account for the money that he had withdrawn. At a meeting in October 2012, HOCHFELD admitted to certain investors that he had taken more than $1 million from the Heppelwhite Fund and that he spent portions of that money on antiques and vacations.
HOCHFELD, 66, of Stamford, Connecticut, pled guilty to one count of securities fraud and one count of wire fraud. He faces a maximum sentence of 20 years in prison on each count. The defendant also faces a fine of the greater of $5 million or twice the gross gain or gross loss from the offense on the securities fraud charge, as well as a fine of a lesser amount on the wire fraud charge. In connection with his guilty plea, HOCHFELD agreed to forfeit the illegal proceeds of his crimes and will be ordered to pay restitution to the victims of his offenses.
HOCHFELD is scheduled to be sentenced by Judge Crotty on June 27, 2013, at 3:00 p.m.
Mr. Bharara praised the investigative work of the FBI. He also thanked the U.S. Securities and Exchange Commission for their assistance.
This case was brought in coordination with President Barack Obama's Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Jillian Berman is in charge of the prosecution.
Former Employee of Saugus Public Library Sentenced for Stealing Library Funds and Defrauding the GE FoundationRead the Press Release
BOSTON - A Saugus woman was sentenced today for a scheme to steal charitable donations and other funds intended for a local library where she worked
Linda E. Duffy, 66, was sentenced by U.S. District Judge Douglas P. Woodlock to five years in prison, to be followed by three years of supervised release and to pay $965,742 in restitution. In December 2011, Duffy pleaded guilty to four counts of mail fraud, 10 counts of money laundering, and aggravated identity theft.
Beginning around 2004 through 2011, Duffy, who was employed by the Saugus Public Library, diverted funds received for charitable donations and payment of fines from an account in the name of the library to a decoy bank account. She then transferred the funds from the decoy account to her personal account at the same bank. Duffy used the money for personal expenses, including jewelry, home repairs, automotive payments, and her home mortgage payments. She deposited some of the funds into an account in her daughter's name. Duffy also stole funds from a second library account by forging a library official’s signature on about 90 checks.
To boost the funds in the library account, Duffy also deceived the GE Foundation. Since the GE Foundation matches charitable donations by current and former GE employees and their spouses, Duffy posed as the relative of a GE employee, thus deceiving the Foundation into donating over $400,000 to the library to match non-existent donations. Duffy deposited these funds into the decoy account before later transferring them to her own account.
Between 2004 and 2011, Duffy transferred over $850,000 to the decoy account in library donations, fines, fees, and the funds obtained from defrauding the GE Foundation. Duffy was forced to resign in July 2011.
United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation Boston Field Division, made the announcement today. The Saugus Police Department also assisted with the investigation. The case is being prosecuted by Assistant U.S. Attorney Andrew E. Lelling of Ortiz’s Economic Crimes Unit.
Former DHS Worker Sentenced to 37 Months in Prison for FraudRead the Press Release
Oklahoma City, Oklahoma – Yesterday, KATHARINE ANNE DAUGHERTY, 57, of Bethany, Oklahoma, was sentenced to serve 37 months in prison in connection with a scheme to take money by false pretenses from the United States Department of Labor, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Daugherty worked for many years as an Adult Protective Services Specialist with the Oklahoma Department of Human Services ("DHS"). At DHS, Daugherty oversaw the financial accounts of persons placed under the guardianship of DHS Adult Protective Services. In 2009, an Oklahoma state judge appointed DHS as the guardian for "L.J.A.," an elderly man in a Bethany nursing facility. Daugherty was added as a trustee and signatory to L.J.A.’s bank account in May 2009. L.J.A. received monthly disability compensation benefits from the Office of Workers’ Compensation Programs within the United States Department of Labor. L.J.A. died in March 2010, and his entitlement to federal benefits ended upon his death.
On September 11, 2012, Daugherty was charged in a one-count Information with wire fraud. The Information alleged that from March 2010 to May 2011, Daugherty defrauded the Department of Labor through false documents that induced the agency after L.J.A.’s death to continue paying monthly benefits to L.J.A.’s bank accounts that Daugherty controlled. According to the Information, Daugherty caused the Department of Labor to issue more than $27,000 in fraudulent benefits after L.J.A.’s death.
On September 27, 2012, Daugherty pled guilty to the wire fraud count. Daugherty admitted that after L.J.A.’s death, she closed out his case at DHS, but did not notify the Department of Labor of his death. She admitted that in July 2010, months after L.J.A.’s death, she used DHS letterhead to write a letter asking the Department of Labor to mail L.J.A.’s benefits to her at the DHS office. She also admitted that she submitted to the Department of Labor a forged state-court order that appeared to continue DHS guardianship well after L.J.A.’s death. She admitted that in December 2010, she set up and controlled a bank account in L.J.A.’s name to deposit the federal benefits issued in his name. Finally, at the plea hearing, she admitted to using for her personal benefit money that came into L.J.A.’s accounts after his death.
At yesterday’s sentencing, United States District Judge Joe Heaton sentenced Daugherty to 37 months in federal prison, followed by three years of supervised release. Daugherty was ordered to pay restitution to the United States Department of Labor in the amount of $5,451.99. She was also ordered to pay $1,985 in restitution for theft from an unrelated victim under DHS guardianship. Daugherty must report to federal prison on February 4, 2013.
This case is the result of an investigation conducted by the United States Department of Labor – Office of Inspector General and the Oklahoma Department of Human Services – Office of Inspector General. The case was prosecuted by Assistant United States Attorney Chris M. Stephens.
Florida Man Sentenced to 19 ½ Years for Production of Child PornographyRead the Press Release
BOSTON - A Florida man was sentenced today for producing child pornography
Douglas W. Boone, 48, was sentenced by U.S. District Judge Joseph L. Tauro to 19 ½ years in prison and lifetime supervised release for production of child pornography.
In 2010, Boone contacted a 13-year-old Massachusetts girl through the Internet. After communicating with the child for weeks and aware of her age, Boone persuaded her to perform sexual acts for him via the Internet, at least 20 times, between May and August 2010. Boone recorded some of these sessions and shared the videos with hundreds of others via file-sharing websites. Boone also sent the victim sex toys to use on camera for him and he showed himself masturbating to the victim via webcam.
In October 2010, Boone was arrested in Fort Myers, Fla., and has since been in custody.
United States Attorney Carmen M. Ortiz and Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The case was investigated by Massachusetts law enforcement, as well as the Lee County (FL) Sheriff's Office, the U.S. Postal Inspection Service, and the Department of Justice High Technology Investigative Unit. Substantial assistance was provided by the U.S. Attorney's Office for the Middle District of Florida. The case was prosecuted by Assistant U.S. Attorneys Michael Yoon and Stacy Dawson Belf of Ortiz's Major Crimes Unit, and Trial Attorney Andrew McCormack of the Department of Justice Child Exploitation & Obscenity Section.
This case is brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in 2006 by the Department of Justice. Led by the U.S. Attorneys' Offices, and the DOJ’s Criminal Divisions’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Florida Man Sentenced for Role in $30 Million Telemarketing Scam That Victimized over 22,000 PeopleRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Anthony Colon, 37, of Riviera Beach, Florida was sentenced to 70 months in prison, 3 years supervised release, and ordered to pay a $100 special assessment fee. Colon pled guilty to one count of conspiracy to commit mail fraud and wire fraud. The indictment alleged that Colon and others were involved in a telemarketing scam which operated in Florida that bilked over 22,000 victims of $30 million dollars victimizing consumers in all fifty states, the District of Columbia and Puerto Rico, all ten Canadian provinces and the Northwest Territory of Canada. There were at least 54 victims in twenty eight (28) of the thirty eight (38) counties comprising the Southern District of Illinois.
The criminal indictment alleged that Colon worked as a telemarketer for a Universal Marketing Solutions/Creative Vacation Solutions franchise in Palm Beach County, Florida. The indictment alleged that the scheme began October, 2007, and continued through at least January, 2010. Telemarketers for Universal Marketing Solutions and Creative Vacation Solutions placed cold calls to timeshare owners and then falsely represented that their company had actual buyers for the owners’ timeshare property. Telemarketers they supervised then solicited advanced fees of up to several thousand dollars from each victim in purported closing costs that they promised would be refunded to the owner once the closing on the property occurred. Many timeshare owners were told that their closings were scheduled within the next sixty to ninety days. Despite collecting fees from 22,000 victims, these companies were not successful in selling a single timeshare unit, the indictment alleged. Defendants and their co-conspirators, the indictment alleged, simply pocketed the closing costs.
Approximately twenty-four others have been charged in connection with the Creative Vacation Solutions telemarketing scam, the first one being Jennifer Kirk, who pled guilty to a criminal Information on June 30, 2011. She was sentenced on January 9, 2012, to over 16 years in prison and five years supervised release.
The prosecution follows an investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service, the Florida Attorney General’s Office, the Florida Department of Agriculture and Consumer Services, and the Boynton Beach Florida Police Department. The prosecution of the case was handled by Special Assistant U.S. Attorney Katherine Lewis and Assistant U.S. Attorney Bruce Reppert.
Five Arrested in Orange County-Based ‘Builder Bailout’ Mortgage Fraud Scheme That Fraudulently Purchased CondosRead the Press Release
Santa Ana, California – Federal authorities have arrested five people allegedly involved in a “builder bailout” real estate scheme that fraudulently purchased more than 100 condominium units around the country with mortgages that mostly went into default, resulting in foreclosures and millions of dollars in losses.
The scheme, which was operated out of Excel Investments and related companies that were based in Irvine and then Santa Ana, allegedly identified new condominium developments in which the builder-owners were struggling to sell units, and arranged with the builders to sell the units in return for large commissions. The builders benefitted by making it appear that their condos were selling and maintaining their value, while those involved with the fraudulent sale of the units financially benefitted from the hefty commissions that were concealed from the mortgage lenders. The defendants recruited a number of straw buyers to purchase the properties as “investors,” and ensured that they qualified for financing by fabricating important aspects of their loan applications.
The five defendants were arrested yesterday by special agents with the FBI, the Federal Housing Finance Agency’s Office of Inspector General, and IRS - Criminal Investigation. Those taken into custody are: Aref Abaji, 31, of Aliso Viejo, a real estate agent;
Maher Obagi, 26, of Huntington Beach, the brother of Aref Abaji;
Jacqueline Burchell, 52, of Orange, an escrow agent;
Mohamed Salah, 37, of Mission Viejo; and
Mohamed El Tahir, 35, of Glen Burnie, Maryland.
A sixth defendant named in the indictment – mortgage loan officer Wajieh Tbakhi, 48, of Corona – is being sought by federal authorities.
According to an indictment returned last Friday by a federal grand jury in Los Angeles, the defendants involved in the scheme negotiated with the builders of new housing developments in California, Florida and Arizona to sell condominium units on behalf of builders in exchange for a hefty commission, which they often misleadingly referred to as “marketing fees” and did not disclose to the lenders. In each of the transactions – the indictment alleges there were more than 100 of them – the defendants earned commissions of $50,000 to $100,000, and sometimes more. The defendants bought units for themselves, their relatives, and on behalf of “investors” with good credit scores who served as “straw buyers.” They allegedly recruited the straw buyers by presenting the scheme as an investment opportunity which required no down payment and would generate income through rental payments.
To obtain mortgages for the properties, the defendants allegedly prepared loan applications with false information about the buyers’ employment, income and assets. They allegedly submitted fabricated and altered W-2 forms, pay stubs and bank statements in support of those applications. According to the indictment, they concealed the huge commissions from mortgage lenders by submitting false Settlement Statements – or Form HUD-1s – which omitted these large payments.
When many of the loans defaulted and led to foreclosure, the lending institutions suffered losses of at least $6.2 million. The Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal National Mortgage Association (Fannie Mae) purchased dozens of these loans on the secondary mortgage market and suffered losses of at least $2.37 million as a result of delinquencies, defaults and foreclosures on the properties.
The six defendants named in the indictment are all charged with conspiring to commit bank fraud and wire fraud. Abaji, Obagi, Tbakhi and Burchell are additionally charged with six counts of wire fraud.
Release No. 13-005
Felon in Possession of Firearm Sentenced to Federal PrisonRead the Press Release
Eugene, Ore. - On January 9, 2013, Michael Dean Wasson, 53, was sentenced by U.S. District Chief Judge Ann Aiken to the statutory maximum sentence, 113 months and 15 days in federal prison, for unlawful possession of a firearm and ammunition. Upon his release from prison, Wasson will be on supervised release for three years.
On June 29, 2012, Oregon State Police Troopers and Officers with the Lane County Sheriff's Office responded to a call about Wasson threatening to kill his elderly parents and carrying a firearm. Upon arrival, Wasson was armed with a loaded AK-47 type semiautomatic rifle. As Wasson turned towards the officers with the rifle, a Trooper fired a shot at defendant that forced Wasson to drop the AK-47. Defendant has multiple felony convictions, including rape in the first degree.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Oregon State Police, and the Lane County Sheriff's Office, and was prosecuted by Assistant U.S. Attorney Nathan J. Lichvarcik. The Lane County District Attorney's Office is also prosecuting Wasson based upon an unrelated alleged assault.
Federal Jury Returns Guilty Verdict for Cocaine TraffickerRead the Press Release
Conspiracy With Cartel Connections Involved Over 700 Kilograms Of Cocaine
CHARLOTTE, NC B A Charlotte federal jury convicted today Pedro Oscar Dieguez, also known as “The Cuban,” 48, of Indian Trail, N.C., on cocaine trafficking and related charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Tompkins is joined in making today’s announcement by Harry S. Sommers, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office; Sheriff Eddie Cathey of the Union County Sheriff’s Office (UCSO), and Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department (CMPD).
According to filed court documents and evidence presented at trial:
From about 2004 through 2013, Dieguez – a Cuban national – and his co-conspirators obtained more than 700 kilograms of cocaine from Mexican cartels (or other sources of supply with connections to cartels), transported it using trucks to the Charlotte area, and redistributed it for ultimate sale as crack cocaine. The current street value of that amount of cocaine is in excess of $21,000,000. Dieguez conspired to launder the drug proceeds through bank accounts and the purchase of expensive exotic horses, which he kept on his 16-acre ranch residence in Indian Trail. The defendant also used his ranch to offload shipments of drugs. Following a four-day trial, the Charlotte jury convicted Dieguez of conspiracy to distribute and to possess with intent to distribute cocaine and conspiracy to launder proceeds of drug trafficking.
Dieguez has been in the federal custody since April 24, 2013. Dieguez faces a statutory mandatory minimum sentence of 10 years to life in prison, and a fine of up to $10,000,000. A sentencing date has not been set yet.
The case was investigated by the DEA in Charlotte, UCSO, and CMPD. The prosecution was handled by Assistant U.S. Attorney Steven R. Kaufman.
Estrade IndictmentRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr. announced that an Indictment was returned today against GERALD ESTRADE for threatening to murder a former federal law enforcement officer in violation of federal law. A complaint was filed and arrest warrant issued on January 8, 2013 and Estrade was taken into federal custody at that time.
Gerald Estrade, 56, Baton Rouge, LA is charged with threatening to kill the former United States Attorney for the Eastern District of Louisiana, James “Jim” Letten, and his family.
If convicted, Estrade faces a maximum penalty of a term of imprisonment of ten (10) years, a $250,000 fine, or both, and a mandatory special assessment of $100. Additionally, he may be required to serve a term of supervised release of three (3) years.
This investigation is being handled by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Jennifer M. Kleinpeter, who serves as a Deputy Criminal Chief.
Erie Man Indicted on Fraud ChargesRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of wire fraud, United States Attorney David J. Hickton announced today.
The ten-count indictment named Peter Jerard Turk, 60, as the sole defendant.
According to the indictment presented to the court, from in and around January 2009 to in and around September 2012, Turk used a Nigerian advance fee scheme to defraud a former acquaintance out of over $700,000.00.
The law provides for a maximum total sentence of 200 years in prison, a fine of $2,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Eagle Butte Man Pleads Guilty to AssaultRead the Press Release
US Attorney Brendan V. Johnson announced that Ryan Wright, age 27, of Eagle Butte, appeared before US District Judge Roberto A. Lange on January 10, 2013, and pled guilty to Count III of the Indictment that charged him with Assault Resulting in Serious Bodily Injury. The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both.
The charge stems from a November 14, 2012, incident when Wright, after an evening of drinking to celebrate a move to a new residence, argued with other people present, left the residence but came back and hit the victim with his car, running the victim over several times. The victim suffered fractures in his left ankle and pelvis which required surgery.
The investigation was conducted by the Bureau of Indian Affairs. Assistant US Attorney Kathryn N. Rich is prosecuting the case. Wright was remanded to the custody of the US Marshal pending sentencing. A sentencing date has been set for April 1, 2013.
Denton County Man Sentenced for Child Exploitation ViolationsRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas – A 53-year-old Hickory Creek, Texas man has been sentenced to federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Perry Joe Wicks pleaded guilty on June 15, 2013, to online enticement of a minor to engage in sexual activity and was sentenced to 121 months in federal prison on Jan. 9, 2013 by U.S. District Judge Richard Schell.According to information presented in court, Wicks communicated with law enforcement agents who were acting in an undercover capacity. The law enforcement agents represented that they were a minor female who was available for sexual activity for a price. Wicks agreed to pay for sex with the minor female and was apprehended by law enforcement. As a result of this conviction, Wicks will be placed on the required to register as a sex offender following his imprisonment.
This case was investigated by the Plano Police Department, the Collin County Sheriff’s Office and the U.S. Secret Service and prosecuted by Assistant U.S. Attorney Mandy Griffith. ####
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Dalton Meth Dealer Sentenced to PrisonRead the Press Release
McGuire Fought Police Officers When Being Arrested
And Later Tried To Escape From the HospitalROME, Ga. – A Dalton man who sold a pound of methamphetamine to a police cooperator, Jeffrey McGuire, 40, of Dalton, Georgia, was sentenced today to 11 years, 6 months by United States District Judge Harold L. Murphy for selling a pound of methamphetamine to a man cooperating with the police investigation.
“Methamphetamine has had a devastating impact on communities in North Georgia,” said United States Attorney Sally Quillian Yates. “This defendant was caught trying to sell a pound of very pure methamphetamine. Today’s prison sentence will prevent this meth dealer from further contributing to the deterioration of our community.”
McGuire was sentenced to 11 years, 6 months to be followed by 4 years of supervised release. McGuire was convicted on October 18, 2012, upon his plea of guilty.
According to United States Attorney Yates, the charges and other information presented in court, in January 2012, McGuire agreed to sell one pound of methamphetamine to a man for $17,000. Unbeknownst to McGuire, his customer was cooperating with the police investigation and was working at the direction of the police. The police recorded phone calls between McGuire and the cooperator as they made arrangements for the drug deal. During one of those calls, the cooperator told McGuire that he would keep the money for the drugs in the trunk of his car. McGuire responded, “There better not be a Mexican in the trunk or I’ll have to shoot him.”
Eventually, McGuire and the cooperator agreed to meet at a Kangaroo gas station in Dalton. The police observed McGuire arrive in a BMW SUV. The cooperator arrived a few minutes later and parked next to McGuire’s SUV. McGuire got into the passenger seat of the cooperator’s car and showed him the drugs. The cooperator then gave a prearranged signal to the police that McGuire had the methamphetamine. The police moved in to arrest McGuire and pulled him out of the cooperator’s car. However, McGuire vigorously resisted arrest. It took the police several minutes to subdue and restrain him. The police recovered a pound of methamphetamine that was 90% pure. They also found a loaded .25 caliber pistol in the SUV.
Due to injuries that McGuire received while resisting arrest, he was taken to the hospital. A Whitfield County deputy sheriff was present to guard him. Despite the deputy sheriff’s presence, McGuire tried to escape. He ran down the hospital hallway and twice struck a nurse. Even after the deputy sheriff used a Taser on McGuire, he continued to struggle and tried to grab the deputy sheriff’s firearm. The deputy sheriff was ultimately able to use sufficient force to subdue McGuire.
This case was investigated by special agents of the Federal Bureau of Investigation, the FBI Conasauga Safe Streets Task Force, and Whitfield County Sheriff’s Office.
Assistant United States Attorneys Nekia S. Hackworth and Paul R. Jones prosecuted the case.
For further information please contact the U.S. Attorney's Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Cristian Edgardo Mejia-diaz Pleads Guilty to Illegal Re-entryRead the Press Release
CRISTIAN EDGARDO MEJIA-DIAZ, age 25, a citizen of El Salvador, pled guilty in federal court today before U. S. District Judge Nannette Jolivette Brown to a one-count indictment charging him with illegal re-entry by a removed alien, announced U. S. Attorney Dana J. Boente.
According to court documents, on November 13, 2012, MEJIA, an alien who had previously been removed from the United States, was found in Jefferson Parish, within the Eastern District of Louisiana, without having obtained consent from the Secretary of the Department of Homeland Security to reapply for admission to the United States.
The single count carries a maximum statutory penalty of two (2) years imprisonment, a fine of $250,000, and one (1) year of supervised release following any term of imprisonment. Sentencing is scheduled for April 18, 2013 at 10:00 A.M.The case was investigated by U. S. Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations with assistance from the Jefferson Parish Sheriff’s Office. The case is being prosecuted by Special Assistant U. S. Attorney Robert Weir.
(Download Indictment )
Corporate Employee Sentenced for Embezzlement and Tax FraudRead the Press Release
PHILADELPHIA - Sheila Kaye Jameson, 55, of Blandon, PA, was sentenced today to 48 months in prison for embezzlement and tax fraud. In addition to the prison term, U.S. District Court Judge Lawrence Stengel ordered restitution in the amount of $1,864,024 to EnerSys and its insurer, and taxes owed to the IRS in the amount of $256,447 (excluding penalties and interest), and three years of supervised release three years. She must report to the Bureau of Prisons on March 11, 2013.
Jameson was a Logistics Analyst for EnerSys Corporation in Reading, Pennsylania, when she embezzled approximately $1.8 million dollars from EnerSys Corporation by using a shell corporation, Aries Consulting Group. She created Aries Consulting for the purpose of sending bogus invoices to EnerSys, requesting payment which Aries Consulting Group was not entitled to receive. Jameson also failed to include any of the embezzled income on federal income tax returns that she filed with the Internal Revenue Service. She pleaded guilty to mail fraud and filing false tax returns.
The case was investigated by the FBI and the Internal Revenue Service Criminal Investigation and was prosecuted by Assistant United States Attorney Floyd J. Miller.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Connecticut Man Admits Mailing Threatening LettersRead the Press Release
January 10, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that ROLAND PREJEAN, also known as “Gary Joseph Gravelle,” 45, formerly of Thomaston and Morris, Conn., pleaded guilty today before Senior United States District Judge Warren W. Eginton in Bridgeport to federal charges stemming from his mailing of multiple threatening letters.
“We will vigorously investigate and prosecute hoax crimes that threaten violence,” stated U.S. Attorney Fein. “These crimes cause emotional distress for victims and waste the valuable time and resources of our law enforcement community.”
According to court documents and statements made in court, in early September 2010, PREJEAN mailed a threatening letter to the Thomaston Post Office claiming that he had planted a hidden bomb on a remote timer in the Post Office. The letter resulted in the evacuation of the Thomaston Post Office as well as the Thomaston Town Hall and a Thomaston Public School, which were in the immediate vicinity of the Post Office. Bomb technicians from the Connecticut State Police Emergency Services Unit searched the post office for explosive or incendiary devices with negative results.
In addition, PREJEAN mailed a letter to a Connecticut Superior Court Judge in New London that included a substance that was represented to be “Liquid Anthrax,” and he sent threatening letters to a private individual and a probation officer in Connecticut. In those letters PREJEAN threatened to kill numerous people, including a federal employee.
PREJEAN, who has been detained since his arrest in North Dakota on September 7, 2010, pleaded guilty to one count of using the U.S. Mail to communicate a bomb threat and four counts of mailing threatening communications.
Judge Eginton has scheduled sentencing for April 8, 2013, at which time PREJEAN faces a maximum term of imprisonment of 10 years for making a bomb threat through the mail, a maximum term of imprisonment of 10 years for mailing a threatening communication to federal employees and a maximum term of imprisonment of five years of each of the three counts of mailing a threatening communication.
At sentencing, the government will present evidence of more than 50 other threatening letters that PREJEAN mailed both prior to his arrest and while he was detained in federal custody.
U.S. Attorney Fein commended the substantial efforts and cooperation of the several agencies involved in this investigation including the Federal Bureau of Investigation in New Haven, Minneapolis, and Bismarck; the United States Postal Inspection Service in Connecticut and North Dakota; the United States Marshals Service in Connecticut; the Connecticut State Police Emergency Services Unit and the Thomaston Police Department.
U.S. Attorney Fein also acknowledged the critical assistance provided by the U.S. Attorney’s Office for the District of North Dakota.
This case is being prosecuted by Assistant United States Attorney David E. Novick.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Cleveland Man Sentenced to Three Years in Prison for Crimes Related to Credit-Union CollapseRead the Press Release
Zrino Jukic was sentenced to 37 months in prison and ordered to pay nearly $1.7 million in restitution for crimes related to the collapse of the St. Paul Croatian Federal Credit Union.
Jukic, 42, of Cleveland, previously pleaded guilty to one count of bank fraud and one count of money laundering.
Jukic was a co-owner of the Zlato Group, along with Anthony Raguz, who also served as the credit union’s chief operating officer. Jukic engaged in a scheme to defraud the credit union by providing false information in connection with approximately 11 loan applications. The proceeds of these fraudulent loans were used to allow Jukic and Raguz -- through their company, the Zlato Group -- to invest in certain business ventures, according to court documents.
Jukic also engaged in a money laundering transaction by transferring fraudulently obtained funds from a Zlato Group bank account to his own bank account, according to court documents.
St. Paul Croatian Federal Credit Union (SPCFCU) was placed into conservatorship in April 2010, when it served 5,400 members and was believed to have assets of more than $238 million. The National Credit Union Association discontinued operation of SPCFCU when it was determined to be insolvent, making it the largest credit-union failure in American history.
To date, 24 people have been indicted for criminal activity related to the credit union. Raguz was sentenced to 14 years in prison and ordered to repay $72.5 million last year. Koljo Nikolovski was sentenced to 18 years in prison for his role in the credit-union collapse.
This case was prosecuted by Assistant U.S. Attorneys Bridget M. Brennan and Jack Sammon following an investigation by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigations.
Cincinnati Man Pleads Guilty to Conspiring to Use Stolen Identities to Claim Millions in Fraudulent Income Tax ReturnsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Tawanda Marimbire, 23, of Cincinnati pleaded guilty in U.S. District Court to conspiring with others to use stolen identities and obtain fraudulent income tax refunds.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Mark Porter, Special Agent in Charge, U.S. Secret Service, and Darryl Williams, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office (IRS), announced the plea entered today before Chief U.S. District Judge Susan Dlott.
Mirambire pleaded guilty to one count of conspiracy to commit wire fraud. According to court documents, Mirambire and others began the conspiracy in 2007 and continued through approximately April 2012.
Members of the conspiracy stole identities and used them to file fraudulent income tax returns, receiving refunds on debit cards. Once the false income tax refunds were deposited on the prepaid debit cards, the cash was removed from the debit cards at ATM machines or by purchasing money orders. Mirambire and other coconspirators then committed additional federal offenses through their attempts to transfer, conceal, and divert the proceeds of this criminal activity. The cash was sometimes used by the conspirators to purchase expensive vehicles for transport to Zimbabwe. Mirambire and other conspirators also transferred the fraud proceeds to Zimbabwe in various ways, including direct wires.
The plea agreement says there were more than 250 victims and the amount of loss is between $2.5 million and $7 million.
Mirambire was one of seven indicted in September 2012. Charges against others are pending. Five of those charged remain fugitives. They are: Kudzaiishe C. Marimbire, 34
Hlomera Mabhande, 30
Johanes Tagarisa, 37
Andrew T. Bere, 22
Julius Marimbire, 32The remaining defendant is on bond.
Conspiracy to commit wire fraud is punishable by up to 20 years in prison. Judge Dlott will schedule a sentencing hearing.
Assistant United States Attorney Timothy Mangan is representing the United States in this case.
Cellular Telephone Store Robber SentencedRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that MARQUAIL EARL MOURING, 23, of Greenville, North Carolina, was sentenced today by Senior United States District Judge Malcolm J. Howard for his role in a cellular telephone store robbery in Greenville in May of 2011. On May 3, 2011, MOURING and two co-defendants robbed, at gunpoint, the U.S. Cellular store on Southwest Greenville Boulevard in Greenville, netting $1,080.00.
On October 15, 2012, MOURING pled guilty to a count of Hobbs Act Robbery, in violation of Title 18, United States Code, Section 1951, and a count of using or carrying a firearm during and in relation to a crime of violence, or possessing a firearm in furtherance of a crime, in violation of Title 18, United States Code, Section 924(c)(1)(A).
Senior Judge Howard sentenced MOURING to 108 months in prison and 5 years of supervised release. MOURING was also ordered to pay restitution to U.S. Cellular in the amount of $1,080.00.
One other defendant, Julius Deshawn Hobbs of Greenville, was previously sentenced to 132 months for his role in this robbery and two others. The remaining defendant, James Arthur Acklin, Jr. of Greenville, has pled guilty in the case and is pending sentencing at a future date.
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 Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greenville Police Department. Assistant United States Attorney John Bennett is prosecuting the case.
California Man Sentenced to More Than 24 Years for Role in Drug Trafficking Organization ConspiracyRead the Press Release
Tampa, Florida - U.S. District Judge James S. Moody, Jr. today sentenced Sergio Godinez Del Toro (47, Napa, California) to 24 years and four months in federal prison for conspiring with others to distribute, and for aiding and abetting others in possessing with intent to distribute, 500 grams or more of methamphetamine. Godinez Del Toro was found guilty on October 16, 2012, following a jury trial.
According to testimony presented at trial, Godinez Del Toro was a leader in a California-based drug trafficking organization (DTO) that was attempting to establish a methamphetamine and marijuana distribution network in central Florida. In January 2012, the DTO shipped eight pounds of marijuana to Haines City, sold the marijuana, and laundered the proceeds through banks in Pasco County.
In February 2012, the DTO attempted to transport twelve pounds of methamphetamine to Dade City, Florida from California, through Arkansas. The drugs were intercepted by the Drug Enforcement Administration and Arkansas State Police, outside of Jonesboro, Arkansas.
In March 2012, the DTO shipped a total of 24 pounds of methamphetamine (valued at $320,000) to Dade City, in six separate UPS shipments. Godinez Del Toro arrived in Dade City on March 28, after the methamphetamine had been shipped, to oversee the distribution and transfer of the drug proceeds back to California. On March 30, he transferred at least $6,000 in drug proceeds through two separate banks. On April 5, 2012, the DEA and the Pasco County Sheriff's Office seized seven pounds of the methamphetamine and arrested Godinez Del Toro and two of his co-conspirators.
This case was investigated by the Drug Enforcement Administration and the Pasco County Sheriff's Office as part of an on-going Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation's drug supply. The case was prosecuted by Assistant United States Attorney Christopher F. Murray.Buffalo man sentenced for attempted receipt of child pornographyRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Robert P. Dombrowski, 51, of Buffalo, N.Y., who was convicted of attempted receipt of child pornography, was sentenced to 60 months in prison and 10 years supervised release by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Edward H. White, who handled the case, stated that between February 7, 2012 and March 9, 2012, the defendant engaged in chats over the internet with undercover FBI Agents who were posing as a fifteen year old girl. During the chats, Dombrowski attempted to receive child pornography through the internet on his home computer. The defendant also made plans to meet with who he thought was a fifteen year old girl at a restaurant with the purpose of engaging in sexual activity with the girl involving sex toys. The defendant was apprehended by law enforcement officials who discovered the sex toys referenced in the chats in the defendant’s vehicle.
The sentencing is the culmination of an investigation on the part of Agents of the Federal Bureau of Investigation, under the direction of Richard M. Frankel, Acting Special Agent in Charge, the Cheektowaga Police Department under the direction of David Zack, Chief of Police, and the Violent Crimes Against Children Task Force.Boyette SentencedRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr., announced that RICHARD GLENN BOYETTE, age 48, of Zachary, Louisiana, was sentenced today by U.S. District Judge James J. Brady to a term of imprisonment of fifty-one (51) months.
BOYETTE had previously pled guilty to mail fraud in connection with a multi-year scheme to defraud Commercial Tire of Louisiana, Inc. (“Commercial Tire”), located in Baker, Louisiana, with offices in Scott and Hammond. While working as the company’s Controller, from 2001 through late 2010, BOYETTE admitted defrauding the company and its employees. To execute the scheme, the defendant (a) created and approved fraudulent payroll checks to himself, which he was not authorized to receive; (b) obtained fraudulent payroll checks and gained control over the funds; (c) created false entries in the company’s accounting records that falsely reflected that the fraudulent payroll checks had actually been issued to other employees; and (d) prepared and distributed fraudulent W-2s that concealed the stolen funds.
At today’s sentencing, the Court found that BOYETTE’s fraudulent scheme caused a loss to Commercial Tire of more than $1.2 million. Accordingly, BOYETTE was ordered to pay restitution in the amount of $1,283,151. BOYETTE was also ordered to forfeit an additional $1,283,151 to the United States as proceeds of his crime. Following his release from imprisonment, BOYETTE will also be required to serve a two-year term of supervised release.
This investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Alan A. Stevens and James P. Thompson.
Bobbi Rochelle Hurley 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 10, 2013, before U.S. District Judge Dana L. Christensen, BOBBI ROCHELLE HURLEY, a 42-year-old resident of Seeley Lake, appeared for sentencing. HURLEY was sentenced to a term of:
- Community Confinement: 8 months
- Special Assessment: $100.00
- Probation: 5 years
HURLEY was sentenced in connection with her guilty plea to being a felon-in-possession of a firearm.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
On September 24, 2011, HURLEY, a convicted felon on state supervision, possessed a Smith & Wesson .44-magnum revolver in the Lolo National Forest. United States Forest Service officers and fire suppression crews located HURLEY and her boyfriend while investigating an out of control/run away campfire. The USFS officers and fire suppression crew members saw HURLEY and her boyfriend shoot the revolver at green trees near them. HURLEY later admitted that she shot the revolver.
A USFS wild land firefighter observed both HURLEY and her boyfriend shoot the revolver across the drainage in a south/southeasterly direction from his location. The firefighter then advised them to stop shooting due to firefighters and the helicopter in the area fighting the fire. They complied with his request.
During this time, HURLEY lost her keys and requested a ride to Seeley Lake. The USFS officer who gave HURLEY and her boyfriend a ride secured a Smith & Wesson .44 magnum revolver, model 629-3. The officer unloaded several rounds from the revolver and secured in the front seat of his patrol vehicle while transporting them. The officer then returned the revolver to HURLEY's boyfriend as he did not run a criminal history check on either one until November 2, 2011.
When interviewed later, HURLEY stated that she unsure how many times she fired the pistol. HURLEY acknowledged that she was a convicted felon who could not possess firearms.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that HURLEY will likely serve all of the time imposed by the court. In the federal system, HURLEY 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 Law Enforcement and Investigations Division of the U.S. Forest Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Montana Probation and Parole.
Beckley Man Sentenced to Prison Time for Burglary of Federal Post OfficeRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced that a Raleigh County man was sentenced (Jan. 10) to one year in federal prison followed by two years of supervised release for burglary and aiding and abetting the burglary of a federal post office. Timothy Taylor, 31, of Beckley, was previously convicted in August 2012 by a federal jury sitting in Beckley for his role in the post office burglary scheme. Trial evidence revealed that Taylor forcibly broke into or aided and abetted co-defendant Benjamin Webb, 39, in the forcible break-in of the Fairdale Post Office.
Webb admitted that on October 30, 2011, he and co-defendant Taylor arrived at the Fairdale Post Office located in Beckley, W.Va. and gained entry into the post office by smashing a glass door using a sledgehammer. The post office was closed at the time the burglary occurred. Webb further admitted that once he and Taylor were inside of the post office, they stole nine packages and fled the scene.
Webb also admitted that the packages stolen from the post office were addressed to him and contained quantities of prohibited synthetic stimulants commonly known as “bath salts.”
Webb was previously sentenced in August 2012 to eight months in federal prison and three years of supervised release for his role in the scheme.
The Court also ordered the defendant to pay restitution in an amount not to exceed $1228, including the damage to the post office and the value of the stolen mail.
The United States Postal Inspection Service and the Raleigh County Sheriff’s Office conducted the investigation. Assistant United States Attorneys Erik Goes and Larry Ellis handled the prosecution. The sentence was imposed by United States District Judge Irene C. Berger.
Beavers SentencedRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr., announced that RAYMOND L. BEAVERS, age 48, of Denham Springs, Louisiana, was sentenced today by U.S. District Judge James J. Brady to serve twelve months and one day in federal prison. BEAVERS was also ordered to pay $127,600 in restitution to the United States Coast Guard, and ordered to forfeit an additional $69,637.15 as proceeds of his offenses.
BEAVERS previously pled guilty to two counts of mail fraud arising out of a lengthy scheme to defraud the Coast Guard, from February 2007 through March 2008, while serving as the Supervisor of the United States Coast Guard’s Electronic Support Detachment (“ESD”) at the Eighth District in New Orleans, Louisiana. In connection with his guilty plea, BEAVERS admitted that he stole electronics equipment from the Coast Guard and sold the equipment, often using eBay and PayPal, for his own personal profit. The equipment had a value of more than $120,000.
“Today's sentencing demonstrates our commitment to fully prosecuting those who try to defraud the federal government and the American taxpayer,” said Capt. Jon Gage, commanding officer of Coast Guard Base New Orleans. “The illegal activity was uncovered and successfully prosecuted because of the staunch partnership between the Coast Guard Investigative Service, the U.S. Attorney's Office, and other federal agencies.”
U.S. Attorney Donald J. Cazayoux, Jr., stated, “We appreciate the work of the Coast Guard Investigative Service to uncover the defendant’s scheme. We will continue to work with our law enforcement partners to investigate and prosecute this type of criminal activity, especially when committed by those who occupy positions of public trust.”
This investigation was conducted by the United States Coast Guard Investigative Service and the U.S. Department of Homeland Security, Office of Inspector General, with assistance from the Louisiana State Police and the Walker Police Department.
The case is being prosecuted by Assistant United States Attorneys Alan A. Stevens and James P. Thompson.
Barrio Azteca Associate Sentenced in Texas to 18 Months in Prison for Role in Racketeering ConspiracyRead the Press Release
WASHINGTON – An associate of the Barrio Azteca (BA), a trans-national border gang allied with the Juarez Cartel, was sentenced today to serve 18 months in prison, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Robert Pitman for the Western District of Texas, FBI Special Agent in Charge Mark Morgan of the FBI’s El Paso, Texas, Office and Administrator Michele M. Leonhart of the U.S. Drug Enforcement Administration (DEA).
April Cardoza, 24, was sentenced today by U.S. District Judge Kathleen Cardone in the Western District of Texas. In addition to her prison term, Cardoza was sentenced to serve five years of supervised release.
On Oct. 18, 2012, Cardoza pleaded guilty to one count of conspiracy to commit racketeering offenses (RICO).
According to court documents and information presented in court throughout this case, the Barrio Azteca is a violent street and prison gang that began in the late 1980s and expanded into a transnational criminal organization. In the 2000s, the BA formed an alliance in Mexico with “La Linea,” which is part of the Juarez Drug Cartel (also known as the Vincente Carrillo Fuentes Drug Cartel or “VCF”). The purpose of the BA-La Linea alliance was to battle the Chapo Guzman Cartel and its allies for control of the drug trafficking routes through Juarez and Chihuahua. The drug routes through Juarez, known as the Juarez Plaza, are important to drug trafficking organizations because they are a principal illicit drug trafficking conduit into the United States.
According to court documents and information presented in court, Cardoza assisted the BA by providing communication to and from BA members, including BA Captain Manuel Cardoza, and facilitating money laundering.
Cardoza and 34 other BA members and associates based in the United States and Mexico were charged in a 12-count third superseding indictment unsealed in March 2011. The indictment contains charges related to various alleged criminal acts, including racketeering, narcotics distribution and importation, retaliation against persons providing information to U.S. law enforcement, extortion, money laundering, obstruction of justice and murder, including the 2010 Juarez consulate murders.
Of the 35 defendants charged, 33 have been apprehended. Twenty-five of those defendants, including Cardoza, have pleaded guilty. One defendant committed suicide while imprisoned during his trial. Another defendant was extradited from Mexico and is awaiting trial. Six other defendants are pending extradition from Mexico. U.S. and Mexican law enforcement are actively seeking to apprehend the two remaining fugitives in this case, including Luis Mendez and Eduardo Ravelo, an FBI Top Ten Most Wanted Fugitive.
The case is being prosecuted by Trial Attorney Joseph A. Cooley of the Criminal Division’s Organized Crime and Gang Section, Trial Attorney Brian Skaret of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney John Gibson of the Western District of Texas, El Paso Division. The U.S. Attorney’s Office for the District of New Mexico provided significant assistance in this case, including by Assistant U.S. Attorney Sarah Davenport. Valuable assistance was provided by the Criminal Division’s Offices of International Affairs and Enforcement Operations.
The case was investigated by the FBI’s El Paso Field Office, Albuquerque Field Office (Las Cruces Resident Agency), DEA Juarez and DEA El Paso. Special assistance was provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement; the U.S. Marshals Service; U.S. Customs and Border Protection; Federal Bureau of Prisons; U.S. Diplomatic Security Service; the Texas Department of Public Safety; the Texas Department of Criminal Justice; El Paso Police Department; El Paso County Sheriff’s Office; El Paso Independent School District Police Department; Texas Alcohol and Beverage Commission; New Mexico State Police; Dona Ana County, N.M., Sheriff’s Office; Las Cruces, N.M., Police Department; Southern New Mexico Correctional Facility; and Otero County Prison Facility New Mexico.
Attorney Sentenced to Seven Years in Prison for Racketeering and Money Laundering Offenses Committed on Behalf of Mexican MafiaRead the Press Release
LOS ANGELES – A federal criminal defense attorney was sentenced this afternoon to seven years in federal prison for his conviction on racketeering and money laundering offenses committed on behalf of the Mexican Mafia and the 18th Street gang.
Isaac Guillen, 52, received the 84-month sentence from United States District Judge Dean D. Pregerson.
Guillen was a member of a street gang during his late teens, leaving that life behind to attend the UCLA School of Law and become a successful criminal defense attorney. But he became an associate of the Columbia Lil' Cycos (CLCS) clique of the 18th Street gang while doing legal work for a member of that criminal street gang.
Guillen admitted that he used the shield of the attorney-client privilege to relay CLCS communications to and from convicted Mexican Mafia member Francisco “Puppet” Martinez, who was serving multiple life sentences at the federal “supermax” prison in Florence, Colorado. With Guillen’s help, Martinez was able to continue to run the CLCS from behind the walls of the United States Penitentiary, Administrative Maximum Facility, which is regarded as the nation’s most secure prison.
In addition to facilitating communications between Martinez and the CLCS leadership, Guillen laundered more than $1.3 million dollars in drug and extortion proceeds on the organization’s behalf by, among other things, creating three businesses and providing funds for the establishment of a methamphetamine laboratory.
The State Bar of California disbarred Guillen in late 2010.
According to court documents and evidence presented at trial, the CLCS used violence and intimidation to control narcotics distribution in an area adjoining MacArthur Park in the Westlake District of Los Angeles. Under the orders of CLCS leadership, narcotics suppliers and street dealers paid “rent” – typically a percentage of proceeds from the sale of narcotics – in exchange for permission from the CLCS to sell narcotics in the gang’s territory. Those who paid rent received the exclusive authorization to sell narcotics in CLCS territory, as well as protection from rivals. Street vendors operating in CLCS Organization territory also were required to pay rent to the organization in order to be allowed to sell their wares near MacArthur Park. The CLCS made tens of thousands of dollars a week through its collection of rent. The failure or refusal to pay rent and otherwise follow the gang’s rules would result in retribution, including acts of violence.
A street vendor who refused to make a $50 rent payment to the CLCS was targeted to be killed by members of the gang in a shooting on September 15, 2007. The man survived despite being shot four times, but a 23-day-old infant sleeping in a stroller next to the vendor was struck and killed.
Forty-three members and associates of the CLCS were charged in a 2009 federal racketeering indictment that alleged acts of violence, narcotics distribution, money laundering and various violent crimes in aid of racketeering (VICAR). Thirty-seven of the defendants named in the indictment have been convicted in either federal or state court. The remaining six defendants are fugitives.
The CLCS racketeering case was investigated by the Federal Bureau of Investigation and the Los Angeles Police Department.
Release No. 13-006
Armed Career Criminal Sentenced to 188 Months ImprisonmentRead the Press Release
Yakima – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that David Allen Vickers, age 40, of Yakima, Washington , was sentenced for being a felon in possession of a firearm. Senior District Court Judge Fred Van Sickle determined that, based on Vickers' lengthy criminal history which includes convictions for violent crimes and drug trafficking, he is an armed career criminal. Accordingly, Judge Van Sickle sentenced Vickers to a 188 month term of imprisonment, to be followed by a 5 year term of court supervision upon release from Federal prison. The Defendant has been in custody since his arrest on January 19, 2012.
On October 4, 2012, Vickers pleaded guilty to the charge of being a previously convicted felon in possession of a firearm. According to information disclosed during the proceedings in this case, on January 19, 2012, the Vickers armed himself with a shotgun and entered a convenience store located in Yakima, Washington. Vickers attempted to rob the business owner. The business owner grabbed the shotgun during the attempted robbery. The shotgun discharged during the struggle. Vickers then ran out of the store. The business owner chased Vickers and fought with him in the snow. During the struggle, the business owner was able to take possession of the shotgun. Vickers then attempted to obtain a ride from citizens driving in the area. Officers with the Yakima Police Department were called to the scene and quickly arrested him. Vickers claimed that he had been forced to commit the robbery to pay for a drug debt.
Michael C. Ormsby said, "The United States Attorney's Office, the Yakima Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, are committed to working in partnership to protect communities from convicted felons who possess firearms and endanger the lives of citizens within the Eastern District of Washington." Mr. Ormsby emphasized that overriding personal safety concerns dictate that private citizens should seek assistance from law enforcement officials rather than confronting and engaging armed criminals.
This matter was investigated by the Yakima Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Tom Hanlon, an Assistant United States Attorney for the Eastern District of Washington.
12-CR-02036-FVS-1