Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
8 January 2013
Tammy Dickinson Sworn in as United States AttorneyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson has taken the oath of office to become the United States Attorney for the Western District of Missouri. Dickinson was nominated by President Obama in July 2012 and confirmed by unanimous consent of the U.S. Senate on Jan. 1, 2013. She took the oath of office late yesterday from U.S. District Judge Beth Phillips, the former U.S. Attorney.
“I’m honored to serve as the U.S. Attorney for the Western District of Missouri,” said Dickinson. “I would like to thank President Obama, Congress, and especially Senators McCaskill and Blunt for their support.
“As a career state prosecutor, I look forward to working with my colleagues and law enforcement partners at the federal level,” Dickinson said. “The U.S. Attorney’s Office has earned the respect of our community and a reputation for pursuing justice and enforcing the law without prejudice. I will strive to uphold that proud tradition.”
As U.S. Attorney, Dickinson is the top-ranking federal law enforcement official in the Western District of Missouri, which includes Kansas City, St. Joseph, Columbia, Jefferson City, and Springfield. She oversees a staff of 127 employees, including 64 attorneys and 63 non-attorney support personnel. The office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, public corruption, child exploitation, firearms, and narcotics. The office also defends the United States in civil cases and collects debts owed to the United States.
Dickinson, a Kansas City, Mo., native, has been a trial attorney her entire legal career. She has been the Chief Trial Assistant for the Jackson County Prosecutor’s Office since 2002 after working as an assistant prosecutor in that office beginning in 1998.
Dickinson received her J.D. in 1998 from the University of Missouri - Kansas City School of Law and her B.A. in 1989 from Webster University. She is a member of the Missouri Bar Association and the Kansas City Metropolitan Bar Association.Statement of Manhattan U.S. Attorney Preet Bharara on the Sentencing of Former Bronx City Councilman Larry SeabrookRead the Press Release
“Councilman Larry Seabrook sacrificed the public trust on the altar of greed. He was a flagrant and serial abuser of City Council discretionary funds in a far too familiar New York tale of corruption. Today’s sentence finally vindicates the interests of the constituents whose trust he so casually violated by his fraud. We remain committed to making those who are corrupted by power pay the price, and the public can expect more arrests of politicians who have not learned this lesson.”
Spokane Man Sentenced to Five Years in Federal Prison and Paid $75,000 to the U.S. Marhsal Service for Transportation of Child PornographyRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of
Washington, announced that William Roberts, age 64, of Spokane, Washington, was sentenced today after having previously pleaded guilty to transportation of child pornography. United
States District Court Judge Rosanna Peterson sentenced Roberts to a 5 year term of imprisonment to be followed by a life term of court supervision after he is released from Federal prison. In addition, Roberts paid $75,000 to the United States Marshal's Service in lieu of forfeiting his residence.According to information disclosed during the court proceedings, in February of 2011, an FBI Internet undercover investigation discovered that Roberts was sharing images of child pornography with other individuals, via the Internet, using a peer to peer file sharing program.
On April 6, 2011, FBI Special Agents executed a federal search warrant at Robert's residence in
Spokane, Washington. The FBI agents discovered that Roberts had downloaded child pornography beginning as early as September of 2003. Although Roberts had installed file wiping software on his computer, the FBI was able to forensically find in excess of 600 images of child pornography on the computer. The images included depictions of minors under the age of twelve and of sadistic and masochist activity. Roberts had transported the images via the
Internet and utilized his residence to facilitate the crime.Michael C. Ormsby stated, "Prosecuting child pornography crimes is particularly important for the United States Attorney's Office in the Eastern District of Washington. The public should understand that my Office and FBI are committed to investigating and prosecuting aggressively child pornography crimes in this District. Indeed, in addition to jail time, the appropriate punishment in child pornography crimes may include, as it did in this case, a significant monetary payment in lieu of forfeiture of a defendant's residence. "
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood (PSC) Initiative has five major components:
- Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue child victims;
- Participation of PSC partners in coordinated national initiatives;
- Increased federal enforcement in child pornography and enticement cases;
- Training of federal, state, and local law enforcement agents; and
- Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by the FBI. The case was prosecuted by Stephanie J.
Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of
Washington.CR-11-00174-RMP
Southern Illinois Resident Sentenced for Federal Unemployment Insurance Program FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Herman Peterson, 58, of East St. Louis, Illinois, was sentenced on January 3, 2013, in the United States District Court for the Southern District of Illinois, East St. Louis Division, for defrauding the unemployment insurance program. The District Court sentenced Peterson to 30 days in jail to be followed by a 3 year term of supervised release. Peterson will spend the first 6 months of his supervision on home confinement with electronic monitoring, as well. Peterson also was ordered to repay $15,700 in restitution to the Illinois Department of Employment Security and to pay a $100 special assessment.
“Lying and cheating to receive unemployment compensation is a crime,” said United States Attorney Wigginton. “Those who defraud the unemployment insurance program undermine support for an important public program and hurt and insult every law-abiding citizen of Southern Illinois, particularly as public programs face economic crises. I will continue to place a high priority on pursuing those who steal from the United States Treasury.”
At the time of his guilty plea, Peterson admitted to being employed between November, 2008, and January 2010, while also filing for and receiving unemployment insurance benefits. In order to receive the benefits, Peterson admitted that he had to certify, approximately every two weeks, to the Illinois Department of Employment Security (IDES) that he was ready, willing, and able to work. He also had to verify that he was actively seeking work. Peterson was supposed to inform IDES of any income he received during the certification period, however, but he did not report that he was working and did not report the income he earned to IDES, instead choosing to collect both wages and benefits simultaneously.
This case was investigated by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; the United States Postal Inspection Service; and the Illinois Department of Employment Security. This case was prosecuted by Special Assistant United States Attorney Katherine L. Lewis.
Southern Illinois Resident Sentenced for Federal Unemployment Insurance Program FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Ontonio Jennings, 37, formerly of Granite City, Illinois, was sentenced on January 4, 2013, in the United States District Court for the Southern District of Illinois for defrauding the unemployment insurance program. The District Court sentenced Jennings to 10 months in jail to be followed by a 2 year term of supervised release. Jennings was also was ordered to repay $5,796 in restitution (this figure represents the amount of restitution outstanding after other restitution payments were considered) to the Illinois Department of Employment Security and to pay a $100 special assessment.
“Lying and cheating to receive unemployment compensation is a crime,” said United States Attorney Wigginton. “Those who defraud the unemployment insurance program undermine support for an important public program and hurt and insult every law-abiding citizen of Southern Illinois, particularly as public programs face economic crises. I will continue to place a high priority on pursuing those who steal from the United States Treasury.”
At the time of his guilty plea, Jennings admitted to being employed at various times between December 2008 and May 2010 while also filing for and receiving unemployment insurance benefits. In order to receive the benefits, Jennings had to certify, approximately every two weeks, to the Illinois Department of Employment Security (IDES) that he was ready, willing, and able to work. He had to verify that he was actively seeking work. Jennings was supposed to inform IDES of any income he received during the certification period, but he did not report that he was working and did not report the income he earned to IDES, instead choosing to collect both wages and benefits simultaneously. In total, Jennings received $24,337 in unemployment insurance payments to which he was not entitled. Additionally, Jennings was on supervised release for an unrelated matter while committing this crime. This led to the revocation of his supervised release in August 2012, and he was sentenced to an additional year and a day in prison for the violation. Jennings’ term of imprisonment in this case will not begin until after he has served his sentence for the supervised release violation.
This case was investigated by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, the United States Postal Inspection Service, and the Illinois Department of Employment Security. This case was prosecuted by Special Assistant United States Attorney Katherine L. Lewis.
South Florida Woman Pleads Guilty to Failing to Disclose Income from Swiss Bank Accounts and Agrees to $21 Million PenaltyRead the Press Release
Mary Estelle Curran of Palm Beach, Fla., pleaded guilty today in the U.S. District Court for the Southern District of Florida to filing false tax returns for tax years 2006 and 2007, the Justice Department and Internal Revenue Service, Criminal Investigation (IRS-CI) announced.
According to court documents, Curran, a U.S. citizen, maintained undeclared bank accounts at UBS AG in Switzerland and a bank in Liechtenstein, which she inherited from her husband in 2000. The accounts at UBS AG were held in the names of nominee foreign entities, including the Flognet Foundation and Norega Investment. The account earned income each year, which Curran failed to report on her 2001 through 2007 individual income tax returns.
According to the plea agreement, Curran’s conduct caused a tax loss to the government of approximately $667,716. The value of all undeclared foreign financial accounts owned or controlled by Curran exceeded $42 million in 2007. In order to resolve her civil liability for failure to report her foreign bank accounts, Curran has agreed to pay a civil penalty in the amount of 50 percent of the high balance of the accounts, which is $21,666,929.
“The Justice Department continues to pursue those who hide income and assets from the IRS through the use of nominee businesses and offshore bank accounts,” said Assistant Attorney General Keneally. “U.S. taxpayers who fail to come forward in the voluntary disclosure program risk prosecution and substantial fines, as this case demonstrates.”
“U.S. citizens who seek to avoid their tax obligations by hiding income in undeclared bank accounts abroad should by now be fully on notice that they will be held accountable for their actions, both civilly and criminally,” said U.S. Attorney for the Southern District of Florida Wifredo A. Ferrer. “The U.S. Attorney’s Office is committed to helping the IRS enforce our nation’s tax laws.”
“Offshore accounts can no longer be used to hide from the IRS and avoid paying the fair amount of tax,” said Richard Weber, Chief, IRS Criminal Investigation. “IRS Criminal Investigation is aggressively pursuing tax cheats – both domestically and internationally. We owe it to every American taxpayer to use all lawful means to identify and prosecute both those who evade their taxes and those who assist them in evading their tax obligations.”
Curran faces a potential maximum prison term of six years. A sentencing date has not been set.
Assistant Attorney General Keneally and U.S. Attorney Ferrer thanked Special Agents of IRS - CI, who investigated the case, and Tax Division Senior Litigation Counsel Mark F. Daly and Trial Attorney Michelle M. Petersen and Assistant U.S. Attorney Thomas P. Lanigan, who prosecuted the case.
South Florida Woman Pleads Guilty to Failing to Disclose Income from Swiss Bank Accounts and Agrees to $21 Million PenaltyRead the Press Release
Mary Estelle Curran of Palm Beach, Fla., pleaded guilty today in the U.S. District Court for the Southern District of Florida to filing false tax returns for tax years 2006 and 2007, the Justice Department and Internal Revenue Service, Criminal Investigation (IRS-CI) announced.
According to court documents, Curran, a U.S. citizen, maintained undeclared bank accounts at UBS AG in Switzerland and a bank in Liechtenstein, which she inherited from her husband in 2000. The accounts at UBS AG were held in the names of nominee foreign entities, including the Flognet Foundation and Norega Investment. The account earned income each year, which Curran failed to report on her 2001 through 2007 individual income tax returns.
According to the plea agreement, Curran’s conduct caused a tax loss to the government of approximately $667,716. The value of all undeclared foreign financial accounts owned or controlled by Curran exceeded $42 million in 2007. In order to resolve her civil liability for failure to report her foreign bank accounts, Curran has agreed to pay a civil penalty in the amount of 50 percent of the high balance of the accounts, which is $21,666,929.
“U.S. citizens who seek to avoid their tax obligations by hiding income in undeclared bank accounts abroad should by now be fully on notice that they will be held accountable for their actions, both civilly and criminally,” said U.S. Attorney for the Southern District of Florida Wifredo A. Ferrer. “The U.S. Attorney’s Office is committed to helping the IRS enforce our nation’s tax laws.”
“The Justice Department continues to pursue those who hide income and assets from the IRS through the use of nominee businesses and offshore bank accounts,” said Assistant Attorney General Keneally. “U.S. taxpayers who fail to come forward in the voluntary disclosure program risk prosecution and substantial fines, as this case demonstrates.”
“Offshore accounts can no longer be used to hide from the IRS and avoid paying the fair amount of tax,” said Richard Weber, Chief, IRS Criminal Investigation. “IRS Criminal Investigation is aggressively pursuing tax cheats – both domestically and internationally. We owe it to every American taxpayer to use all lawful means to identify and prosecute both those who evade their taxes and those who assist them in evading their tax obligations.”
Curran faces a potential maximum prison term of six years. A sentencing date has not been set.
U.S. Attorney Ferrer and Assistant Attorney General Keneally thanked Special Agents of IRS - CI, who investigated the case, and Tax Division Senior Litigation Counsel Mark F. Daly and Trial Attorney Michelle M. Petersen and Assistant U.S. Attorney Thomas P. Lanigan, who prosecuted the case.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Sentencing of Two eBay RICO DefendantsRead the Press Release
MOBILE, AL-- United States Attorney Kenyen R. Brown announced that Kevin Demps, a Detroit, Michigan resident, and Andrew Valentino Wilson, an Atlanta, Georgia area resident, were sentenced today by Chief United States District Judge William Steele for a conspiracy to commit a RICO violation. Demps received a sentence of 50 months and Wilson received a sentence of 21 months. Both were ordered to pay restitution.
Demps and Wilson previously entered guilty pleas to the conspiracy charge and admitted their involvement in stealing electronics from retail stores. Both admitted some of the stolen electronics were subsequently sold on eBay.
The cases arose from an investigation by the United States Secret Service and were prosecuted by Assistant United States Attorney Deborah Griffin.
Robstown Career Offender Heads to Federal Prison for Cocaine DistributionRead the Press Release
CORPUS CHRISTI, Texas – Rene Olivarez, 45, of Robstown, has been sentenced as a career offender for more than 15 years for his involvement in a conspiracy to distribute cocaine in Kingsville, United States Attorney Kenneth Magidson announced today. Olivarez pleaded guilty Sept. 6, 2012.
Today, U.S. District Judge Nelva Gonzales Ramos handed Olivarez a 188-month sentence followed by five years of supervised release. Co-defendant Daniel Cano, 32, of Kingsville, previously pleaded guilty and was sentenced federal prison for 57 months.
Authorities became aware of the activities of Olivarez and Cano when members of the United States Marshals Fugitive Apprehension Unit discovered 2.92 kilograms of cocaine, $37,521 and 164 live marijuana plants in Cano’s Kingsville residence while executing a fugitive arrest warrant on Jan. 24, 2012.
In handing down the sentence, Judge Ramos noted that the career offender sentencing enhancement and the nearly 16-year sentence was appropriate based on the repetitive nature of Olivarez’s three prior drug trafficking offenses (which spanned approximately 20 years) and promotes respect for the law. Olivarez has been in custody where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Jeffrey D. Preston.
Pine Ridge Man Guilty of Sexually Abusing A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that Benjamin Leonard, age 57, of Pine Ridge, appeared before U.S. Magistrate Judge Veronica L. Duffy on December 21, 2012, and pled guilty to Sexual Abuse of a Minor. The Magistrate Judge is expected to recommend Leonard’s plea be accepted by the District Court. The maximum penalty upon conviction is 15 years' imprisonment and/or a $250,000 fine.
Between June and August 2010, near Pine Ridge, Leonard engaged in a sexual act with a child under the age of 16. The investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Sarah B. Collins.
A presentence investigation was ordered, and a sentencing date was set for April 2, 2013. The defendant was remanded to the custody of the United States Marshal pending acceptance of this plea and sentencing.
Petersburg Man Sentenced to Federal Prison for Child ExploitationRead the Press Release
Anchorage, Alaska – United States Attorney Karen L. Loeffler announced today that a Petersburg resident was sentenced in federal court in Juneau to 12 years in federal prison for the distribution, receipt, and possession of child pornography.
On January 7, 2015, Tye Leif Petersen, 46, a resident of Petersburg, Alaska, was sentenced by United States District Court Judge Timothy M. Burgess. Upon completion of his prison term, Petersen must complete a 25 year term of supervised release.
Petersen was sentenced to 144 months (12 years) in prison for a count of distribution, receipt, and possession of sexual explicit images and videos of children. Many of images were of prepubescent children engaged in sexually explicit conduct. The sentences are to run concurrently.
According to Assistant U. S. Attorney Jack S. Schmidt, Petersen, who had no criminal record, worked as the Director of Maintenance for the Petersburg School District. Petersen had distributed, received, and possessed over 2,000 images and 39 videos that included children under the age of twelve and material depicting sadistic or masochistic conduct. Petersen, in his position as Director of Maintenance, surreptitiously took pictures of children at the local high school and in the community of Petersburg. Petersen also obtained additional images from electronic media in the school’s lost and found, and on school-issued computers where Petersen recovered images using a software recovery program to obtain deleted images from the computers. Petersen then used those images to trade for child pornography on a Russian website that is solely used for the distribution and receipt of child pornography.
In ordering Petersen’s sentence, Judge Burgess noted the seriousness of the underlying offense and that Petersen’s actions were a “betrayal of trust” and “a level of betrayal and breach of trust that goes beyond what happens in most cases.” Judge Burgess further stated that the images the defendant took and used to trade for child pornography are “out there on the internet, forever.” Judge Burgess further noted the need to deter the defendant and others, the need to protect the public from the defendant, and the need to provide treatment for the defendant as reasons for the sentence imposed.
Ms. Loeffler commends the Federal Bureau of Investigation and Petersburg Police Department joint investigation of this case.
This prosecution is part of the Department of Justice’s ongoing Project Safe Childhood (PSC) initiative which was launched to increase federal prosecutions of sexual predators of children, and to reduce the number of Internet crimes against children including child pornography trafficking. As a part of PSC, the United States Attorney’s Office has teamed with state and local agencies and organizations to increase law enforcement presence on the Internet, and to educate the public about safe Internet use, thereby reducing the risk that children might fall prey to online sexual predators. For additional information on the PSC initiative, please go to www.projectsafechildhood.gov or call the United States Attorney’s Office for the District of Alaska.Pair Charged in A $1 Million I.D. Theft and False Income Tax Refund SchemeRead the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerCOLUMBUS, OHIO -- A federal grand jury here has indicted Jose Luis Martinez, 46, of Columbus, Ohio, and Mercedes Emelinda-Silie, 40, of Grove City, Ohio charging them both with one count of conspiracy to defraud the United States government by obtaining and negotiating U.S. Treasury checks representing purported tax refunds; 39 counts of converting U.S. monies to their own use; one count of conspiracy to commit money laundering offenses; one count of operating an unlicensed money transmitting business; and eight counts of identity theft.
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Darryl Williams, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office; and Dugan T. Wong, Assistant Inspector in Charge, U.S. Postal Inspection Service announced the indictment that was returned today.
The indictment alleges that between February 2010 and December 2012, Martinez and Emelinda-Silie conspired together and with others primarily in New York state to illegally use their business checking accounts here in Columbus in order to cash fraudulently procured IRS income tax refund checks. The indictment charges that fraudulent tax returns were filed with the IRS seeking refunds in the names of persons living in Puerto Rico whose identities had been stolen. The IRS mailed the fraudulently obtained refund checks to addresses typically in the Bronx and other New York sites where they were stolen from the mail. In addition, the endorsements on the false refund checks allegedly were forged.
Martinez and Emelinda-Silie allegedly cashed at least $638,730.81 in fraudulent income tax refund checks through their San Isidro Cargo business account, and another $125,506.88 in purported income tax refund checks through Grini’s Salon business checking account.
Martinez and Emelinda-Silie allegedly provided check-cashing services even though neither of them, nor their business, was licensed in Ohio to operate as a check-cashing facility.
In addition, the indictment charges that between June 2010 and February 2011 Martinez and Emelinda-Silie converted 39 specific IRS tax refund checks totaling approximately $245,661.80 that the IRS had mailed to addresses primarily in New York.
The indictment further alleges that between June 2010 and November 2011 Martinez and Emelinda-Silie knowingly used stolen identities of eight individuals in relation to their conversions of government funds.
Conspiracy to cash bogus IRS refund checks refunds is punishable by up to 10 years in prison and a $250,000 fine. Each conversion of government money as well as conspiracy to commit money laundering is punishable by up to 10 years in prison and a $250,000 fine. Operating an unlicensed money transmitting business is punishable by up to five years in prison and a $250,000 fine. Each identity theft is punishable by a two-year term of imprisonment in addition to any other prison terms that may be imposed in this case.
The defendants will be summoned to appear before Judge Gregory L. Frost for arraignment.
“Identity theft is a despicable crime that victimizes honest taxpayers and causes immense hardship,” said Darryl Williams, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority.”
Assistant United States Attorney Daniel Brown is representing the United States in this case that is being investigated by special agents of IRS-Criminal Investigation and the U.S. Postal Inspection Service.
Northview Heights Felon Gets 10 Years for Firearms ChargesRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pa., has been sentenced in federal court to 120 months imprisonment followed by three years supervised release on his conviction of violating federal firearms laws, United States Attorney David J. Hickton announced today.
Senior United States District Judge Alan N. Bloch imposed the sentence on Gregory Izear Corbin a/k/a G-World, 32.
According to certified court records, the defendant was previously convicted of firearm, drug-dealing, terroristic threats, escape and theft-type charges. On Oct. 28, 2010, Pittsburgh Police observed an individual named Coley Davis drinking from an open container of alcohol in public, in violation of a city ordinance. Defendant Anthony White was with Davis and was observed shoving his hands into his sweatshirt where an unnatural bulge was located. Police asked White to remove his hands and saw him to be in possession of a (stolen) gun. Corbin was also present and had a large object in his sweatshirt. A pat-down revealed it to be the pistol listed in the Indictment, loaded with ammunition. White was sentenced to 46 months federal imprisonment on Sept. 6, 2012.
On July 17, 2011, witnesses stated that Corbin was observed breaking into a vehicle. When confronted by the victim, who was on crutches, Corbin allegedly used a silver 9mm semi-automatic pistol to rob, shoot and pistol whip his victim and then fled the scene on foot while shooting at others. The assault and robbery charges from that incident are scheduled for trial before Allegheny County Court of Common Pleas Judge Jill E. Rangos on March 11, 2013. On July 21, 2011, Corbin was located in a residence and arrested. The two silver pistols and ammunition listed in the Indictment were located in that residence. They included a bloody 9mm pistol found with his belongings and a disassembled .22 pistol. After the .22 was assembled from just the parts present, it and the 9mm were both found to be operable. The 9mm was used in five additional shootings between Feb. 15, 2011 and June 18, 2011.
In essence, the lab identified the blood on the 9mm as Corbin's, since the probability of randomly selecting an unrelated individual exhibiting a DNA profile common to the bloodstain on the pistol and Corbin's DNA sample is approximately 1 in 157 X 10 to the 15th power. This number is more than all of the people who have ever been on the planet combined.
ATF experts determined that the three firearms are not antique, that the ammunition and firearms were not manufactured in Pennsylvania and that all of them affected interstate and/or foreign commerce.
Prior to imposing sentence, Judge Bloch considered the seriousness of the offenses and the defendant's extensive criminal background.
Assistant United States Attorney Ross E. Lenhardt prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Corbin.
Newark Man Sentenced to 66 Months in Prison for Unlawful Possession of A Semiautomatic PistolRead the Press Release
NEWARK, N.J. – A Newark man with prior felony convictions was sentenced today to 66 months in prison for unlawfully possessing a semiautomatic pistol, U.S. Attorney Paul J. Fishman announced.
Clarence Noel, 50, previously pleaded guilty before U.S. District Judge William H. Walls to an Information charging him with being a felon in possession of a firearm. Judge Walls imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court: On Sept. 24, 2011, Noel knowingly possessed a .45 caliber Smith & Wesson Chief’s Special, model CS45, in Newark. Noel was found with the pistol after previous felony convictions.
In addition to the prison term, Judge Walls sentenced Noel to three years of supervised release.
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Acting Special Agent in Charge Donald J. Soranno, with the investigation leading to today’s sentencing. He also thanked the Newark Police Department, the N.J. State Police and the acting Essex County Prosecutor’s Office, for their important roles in the investigation.
The government is represented by Assistant U.S. Attorney Lorraine S. Gerson of the U.S. Attorney’s Office Criminal Division in Newark.
13-016
Defense counsel: Peter Carter Esq., Federal Public Defender’s Office, Newark
New York Resident Sentenced to 22 Years in Prison for Transporting Ammo to New York Drug Trafficking OrganizationRead the Press Release
GREENEVILLE, Tenn.- On Jan. 8, 2013, Paul Douglas Prater, 51, of Niagra Falls, N.Y. was sentenced to serve 264 months in prison by the Honorable Leon Jordan, U.S. District Judge, as a result of his conviction on Jun. 13, 2012, of being a convicted felon in possession of ammunition.
An investigation conducted by the Department of Homeland Security Investigations (HSI) showed that Prater was transporting ammunition from Tennessee to a violent drug trafficking organization on the New York-Canadian border. Testimony at trial showed this drug trafficking organization was transporting large quantities of marijuana and cocaine across the Canadian border for distribution in the Niagara Falls area of New York. On Mar. 17, 2011, Prater was stopped by the Tennessee Highway Patrol Interdiction Unit (THP) in Sullivan County, based on information provided by HSI. He was found to be in possession of 500 rounds of pistol ammunition, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) was contacted and joined the investigation.
Agencies involved in the investigation included HSI, THP, and ATF. The United States was represented by Assistant U.S. Attorneys Robert Reeves, Eastern District of Tennessee and Melissa Marangola, Western District of New York.
U.S. Attorney Bill Killian praised the quick response and excellent work done by the various agencies. "This sentence sends a message to those possessing and using firearms and ammunition illegally,” said U.S. Attorney Killian.
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.
New Haven Man Sentenced to 21 Months in Federal Prison for Distributing MarijuanaRead the Press Release
January 8, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that BERNARD BYRD, also known as “BB” and “Chip,” 26, of New Haven, was sentenced today by United States District Judge Janet C. Hall in New Haven to 21 months of imprisonment, followed by three years of supervised release, for distributing marijuana.
BYRD is one of 108 individuals charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants and seizures of narcotics and firearms.
The investigation revealed that in September 2011, BYRD conspired with others to purchase and redistribute between five and 10 kilograms of marijuana.
BYRD was on state probation at the time of the offense.
BYRD has been detained since his arrest on May 22, 2012. On October 16, 2012, he pleaded guilty to one count of conspiracy to distribute marijuana.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided invaluable assistance to the investigation.
This case is being prosecuted by Assistant United States Attorneys S. Dave Vatti and Marc Silverman.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Nebraska Man Sentenced for Taking Waterfowl Without A Proper LicenseRead the Press Release
US Attorney Brendan V. Johnson announced that a Nebraska man convicted of the Unlawful Taking of Migratory Waterfowl was sentenced on January 4, 2013, by US District Judge Charles B. Kornmann. Jeremy Hoefs, age 30, was sentenced to 5 years of probation, $4,700 restitution to the United States Fish and Wildlife Service, a $500 fine, and a $25 special assessment.
Hoefs was indicted for Conspiracy to Violate the Lacey Act, Failure to Lawfully Tag Migratory birds, and the Sale and Possession of Wildlife in Violation of Migratory Bird Act by a federal grand jury in April 2012. He pled guilty to a superseding information charging him with Aiding and Abetting the Unlawful Taking of Waterfowl Without Proper Licenses on January 4, 2013.
The conviction stems from an incident that occurred in the fall of 2009 in Marshall County when Hoefs, while employed as a guide for Windy Hill Outfitters, aided and abetted the unlawful taking of ducks by hunters who did not have valid hunting licenses.
The investigation was conducted by the U.S. Fish & Wildlife Service. Assistant US Attorney Mikal Hanson prosecuted the case.
Montana Man Sentenced for Failure to Pay Legal Child SupportRead the Press Release
US Attorney Brendan V. Johnson announced that a Browning, Montana, man charged with Failure to Pay Legal Child Support was sentenced on January 3, 2013, by US District Judge Charles B. Kornmann. Timothy L. Black Weasel, age 28, was sentenced to 3 years of unsupervised probation, a $100 special assessment to the Victim Assistance Fund, and child support restitution in the amount of $15,718.21.
Black Weasel was indicted for failing to pay over $18,000 in past due child support by a federal grand jury on April 4, 2012. He was ordered by the Rosebud Sioux Tribal Court to pay $200 per month for his minor child commencing May 1, 2004. Said support was subsequently modified to $391 commencing July 1, 2008. At the time of indictment, he had not made a child support payment since November of 2010, and the total arrearage amount was $18,516.65. Black Weasel pled guilty to the charge on January 3, 2013.
This case was investigated the Department of Health and Human Services, Office of Inspector General. Assistant US Attorney Thomas J. Wright prosecuted the case.
Mission Man Sentenced for Aggravated Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man convicted of Aggravated Sexual Abuse was sentenced on January 8, 2013, by United States District Judge Roberto A. Lange. Justin Beardt, age 30, was sentenced to 11 years in custody, 5 years supervised release, $320 in restitution, and a $100 special assessment to the Victim Assistance Fund.
The conviction stems from an incident that took place on January 23, 2011, when Beardt sexually abused the victim by force.
The investigation was conducted by the Federal Bureau of Investigation and Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant United States Attorney Tim Maher.
Beardt was remanded to the custody of the United States Marshal.
Mission Man Guilty of Domestic Assault by Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that Willard Lynn Dorian, Jr., age 36, of Mission, South Dakota, appeared before United States District Judge Roberto A. Lange on January 8, 2013, and pled guilty to Domestic Assault by Habitual Offender. The maximum penalty upon conviction is 5 years in custody, a $250,000 fine, or both.
The conviction stems from an incident that took place on July 3, 2011, when Dorian assaulted his domestic partner causing her bodily injury.
The investigation was conducted by Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant United States Attorney Marie H. Ruettgers.
Dorian was remanded to the custody of the United States Marshal.
Michigan Man Sentenced for Failure to Pay Legal Child SupportRead the Press Release
US Attorney Brendan V. Johnson announced that a Monroe, Michigan, man charged with Failure to Pay Legal Child Support was sentenced on January 4, 2013, by US District Judge Charles B. Kornmann. Stephen J. Peterson, age 35, was sentenced to 2 years of unsupervised probation, a $100 special assessment to the Victim Assistance Fund, and child support restitution in the amount of $16,494.92.
Peterson was indicted for failing to pay over $13,000 in past due child support by a federal grand jury on October 4, 2011. Peterson was ordered by the Seventh Judicial Circuit Court, Pennington County, South Dakota, to pay $189 per month for his minor child commencing May 1, 2000. The support was modified and is currently $208 per month. At the time of indictment, he had not made a child support payment since July of 2009, and the total arrearage amount was $13,582.92. Peterson pled guilty to the charge on October 15, 2012.
This case was investigated the Department of Health and Human Services, Office of Inspector General. Assistant US Attorney Thomas J. Wright prosecuted the case.
Mexican National Convicted for Failing to Obey Coast Guard OrderRead the Press Release
BROWNSVILLE, Texas – Mexican national Pedro Morales-Hidalgo, 43, has pleaded guilty to failing to heave to a Coast Guard vessel, United States Attorney Kenneth Magidson announced today along with Rear Admiral Roy Nash, Commander, Eighth Coast Guard District.
“Vessel operators failing to 'heave to' for an at-sea boarding put themselves and nearby vessels at great risk, including innocent mariners and law enforcement officers,” said Nash. “We take this crime very seriously, and we will continue to work with our partner agencies to ensure that those who violate this law are held responsible for their actions.”
On Oct. 11, 2012, a crew aboard a U.S. Coast Guard vessel observed a Mexican fishing vessel within United States territorial waters, approximately .4 nautical miles north of the Mexican border and 4.5 nautical miles offshore. Morales-Hidalgo was the captain of the vessel. As the Coast Guard approached, the fishing vessel sped off towards the Mexican border. The Coast Guard pursued the fishing vessel and used a loud hailer to give commands in English and Spanish ordering Morales-Hidalgo to stop his vessel. The Coast Guard also used lights, sirens, hand signals and flash bang grenades to direct Morales-Hidalgo to stop, but he refused. During the pursuit, Morales-Hidalgo made several “corkscrew” maneuvers in an attempt to escape and used his vessel to ram the Coast Guard in an attempt to disable its outboard engines. The Coast Guard was finally able to stop the fishing vessel by pulling its fuel line.
Morales-Hidalgo admitted he heard the directives to stop but failed to do so because he had been fishing illegally in the United States and knew that his boat and catch would be seized as a result.
U.S. District Judge Hilda G. Tagle, who accepted the guilty plea, has set sentencing for March 27, 2013, at which time Morales-Hidalgo faces a maximum prison term of five years and/or a fine of up to $250,000. While given a bond, Morales-Hidalgo has remained in custody since his arrest.
The case was investigated by the U.S. Coast Guard Investigative Service and is being prosecuted by Assistant United States Attorney Israel Cano III.
McLaughlin Man Sentenced on Drug ChargeRead the Press Release
U.S. Attorney Brendan V. Johnson announced that a McLaughlin man convicted of one count of Conspiracy to Distribute and Possess With Intent to Distribute a Controlled Substance and one count of Assault With a Dangerous Weapon was sentenced on January 4, 2013, by U.S. District Judge Charles B. Kornmann. Nathan Martin, age 30, was sentenced to 109 months in custody, 3 years of supervised release, and a $200 special assessment.
Martin was indicted by a federal grand jury in February 2012. He pled guilty to two counts of a superseding indictment in October of 2012.
The conviction stems from Martin knowingly and intentionally conspiring to distribute and possess a mixture or substance containing methamphetamine, a Schedule II controlled substance in 2011, and aiding and abetting a co-defendant who kicked a victim with shod feet and forced a firearm into the victim’s mouth.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller prosecuted the case.
Martin was immediately turned over to the custody of the U.S. Marshal.
McLaughlin Man Sentenced for Domestic AssaultRead the Press Release
US Attorney Brendan V. Johnson announced that a McLaughlin man was convicted of one count of Assault by Striking, Beating and Wounding and one count of Simple Assault and on January 3, 2013, was sentenced by US District Judge Charles B. Kornmann. Kevin Fischer, age 43, was sentenced to 3 years of probation on each count to run concurrently, a $3,000 fine, and a $10 special assessment on each count.
Fischer was indicted for three counts of Assault with a Dangerous Weapon by a federal grand jury on March 22, 2012. He pled guilty to a Superseding Information charging him with one count of Assault by Striking, Beating and Wounding and one count of Simple Assault on September 17, 2012.
The convictions arose from an incident that occurred in March 2012 when Fischer assaulted two different victims in McLaughlin, South Dakota.
The investigation was conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant US Attorney Mikal Hanson prosecuted the case.
McKees Rocks Man Sentenced to 12 Years in Prison for Selling Heroin on Multiple OccasionsRead the Press Release
PITTSBURGH, Pa. - A resident of McKees Rocks, Pa., has been sentenced in federal court to 12 years in prison for his conviction of various violations of federal narcotics offenses, United States Attorney David J. Hickton announced today.
Senior United States District Judge Alan N. Bloch imposed the 144-month sentence on Lopes-Viera, 25, on Jan. 3, 2013.
According to information presented to the court, on May 21, 2010, May 27, 2010, and again on March 8, 2011, Lopes-Viera possessed with intent to distribute less than 100 grams of heroin.
On both dates in May of 2010, Lopes-Viera was in the Canonsburg area when he sold heroin in a sticky, highly potent form known as "black tar," packaged in small colored balloons. On March 8, 2011, Lopes-Viera was arrested with just over two grams of the same substance, packaged in the same way.
At the time he entered his plea of guilty, Lopes-Viera additionally admitted to selling balloons of "black tar" heroin on Feb. 11, 2011, to a certain female customer. That customer shared the heroin with a friend later in the evening. The friend, an individual named James O'Donnell, died of an overdose as a result of his use of the "black tar" heroin that same night.
Assistant United States Attorney Barbara K. Swartz prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration for the investigation leading to the successful prosecution of Saul Lopes-Viera.
Lower Brule Man Pleads Guilty to AssaultRead the Press Release
US Attorney Brendan V. Johnson announced that Earl LaRoche, age 53, of Lower Brule, appeared before US District Judge Roberto A. Lange on January 7, 2013, and pled guilty to 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 an incident on October 9, 2011, when LaRoche unlawfully assaulted the victim by biting off a portion of her ear, requiring 25 stitches and resulting in permanent disfigurement.
The investigation was conducted by the Federal Bureau of Investigation, and Assistant US Attorney Meghan N. Dilges is prosecuting the case. LaRoche was released on bond pending sentencing. A sentencing date has been set for March 25, 2013.
Louisiana Man Sent to Prison for Smuggling MarijuanaRead the Press Release
CORPUS CHRISTI, Texas – Dolph Finley, 63, of Lettsworth, La., has been sent to federal prison following his convictions on two counts as charged in relation to the smuggling of marijuana through the Sarita Border Patrol Checkpoint, United States Attorney Kenneth Magidson announced today. The federal jury returned their verdict June 6, 2012, following a two-day trial and approximately 20 minutes of deliberation.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Finley to a total of 38 months in federal prison to be followed a three-year-term of supervised release.
During trial, the United States presented evidence that Finley and co-defendant Thomas Lubecke drove a rental vehicle from Baton Rouge, La., to Brownsville, Texas, where they planned to buy marijuana and transport it back to Baton Rouge. Lubecke, 34, of Denham Springs, La., pleaded guilty and testified against Finley at trial and later sentenced to six months of home confinement.
The prosecution demonstrated that once in Brownsville, Finley and Lubecke purchased large black “All Star” duffel bags and other materials to transport the marijuana through the Sarita U.S. Border Patrol checkpoint. Finley boarded an Americanos bus with the “All Star” duffel bag full of marijuana, while Lubecke followed the bus in his rental vehicle. There, a canine alerted to a small bag of cocaine and some prescription medications in his rental vehicle and Lubecke was arrested. The bus, which entered the checkpoint at the same time as Lubecke, successfully passed through the checkpoint.
Border Patrol agents testified that when they searched Lubecke’s car, they found three brand-new black duffel bags, black plastic, dryer sheets, high-temperature grease, Febreze, household cleaners and scrub pads, which are all items ordinarily used to package large amounts of marijuana. However, they found no large quantities of narcotics. One agent observed an identical “All Star” bag on the bus that had just come through the checkpoint. Other agents discovered he had been to the bus station in Brownsville and communicating with another person via text message.
Agents were notified and subsequently able to stop the bus. Finley was found to be in possession of the bag which contained 16.8 kilograms of marijuana. Once Finley was apprehended, Lubecke confessed to the scheme and agreed to cooperate with authorities.
Finley has been in custody since his arrest where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by Customs and Border Protection and the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorney Jeffrey D. Preston.
Los Lunas Woman Sentenced to Prison for Federal Bank Fraud and Embezzlement ConvictionRead the Press Release
ALBUQUERQUE – This morning a federal judge sentenced Jolene Calderon, 35, of Los Lunas, N.M., to a 15-month term of imprisonment for her conviction on bank fraud and embezzlement in connection with health care charges. Calderon will be on supervised release for five years after completing her prison sentence. She also was ordered to pay $86,000.85 in restitution to the victims of her criminal conduct.
Calderon was indicted on Feb. 8, 2012, and charged with 82 counts of bank fraud and five counts of theft or embezzlement of funds from a health care benefit program. Calderon was employed as an analyst in Presbyterian Health Plan's (PHP) financial department and served as the treasurer of the Presbyterian Employees Goodwill Group (PEGG) at the time of the offenses charged in the indictment.According to the indictment, between Oct. 2008 and May 2010, Calderon used her position as PEGG treasurer to commit bank fraud by diverting funds from the PEGG bank account to her own bank accounts or bank accounts she controlled. The indictment also alleged that, between Feb. 2010 and May 2010, Calderon embezzled funds belonging to Presbyterian Healthcare Services (PHS), a healthcare benefit program.
On June 22, 2012, Calderon pled guilty to Counts 1 and 83 of the indictment which charged her with bank fraud and embezzlement in connection with health care. In entering her guilty plea, Calderon admitted abusing her employment at PHP and her position as treasurer of PEGG to devise and execute an illegal scheme to obtain money from the PEGG account.
More specifically, Calderon admitted writing checks on the PEGG account to herself; forging the signatures of authorized account signers, and making false entries into the PEGG check registry to make it appear as if the checks had been written for legitimate PEGG purposes. Calderon fraudulently obtained an aggregate of $86,000.85 through 82 separate transactions over a 20-month period.
Calderon also admitted that, when the PEGG account began to run low, she replenished the account by embezzling funds belonging to PHS and depositing the funds into the PEGG bank account. Calderon misdirected checks intended for PHS into the PEGG bank account on five separate occasions and thus embezzled an aggregate of $31,867.23 in funds intended for a healthcare benefit program.
As required by Calderon’s plea agreement, the Court dismissed the remaining 85 counts of the indictment after imposing sentence on Calderon. Calderon is required to surrender to a federal correctional institution to be designated by the U.S. Bureau of Prisons within 60 days to begin serving her prison sentence.
The case was investigated by the Albuquerque office of the FBI, and was prosecuted by Assistant U.S. Attorney C. Paige Messec.
Local Teen Charged as Adult, Pleads Guilty to Church ArsonRead the Press Release
DANVILLE, VIRGINIA -- A now 18-year-old resident of Henry County, Virginia, pleaded guilty this morning in the United States District Court for the Western District of Virginia in Danville to charges related to a fire deliberately set at a church.
Jean-Claude Bridges, 18, of Henry County, Va., waived his right to be indicted and pleaded guilty to a one count Information charging him with destroying a religious property by fire. Prior to pleading guilty this morning, the Court granted the government’s motion to transfer Bridges to adult status for criminal prosecution. The defendant was 17-years-old when the criminal conduct occurred.
“Mr. Bridges’ racial bias led him to commit the dangerous crime of arson,” United States Attorney Timothy J. Heaphy said today. “When he set fire to the New Holy Deliverance Outreach Ministry, he endangered neighbors and first responders. This act of prejudice offended the entire community. This office will protect the civil rights of everyone and vigorously prosecute crimes like that committed by Mr. Bridges. Racism has no place in Axton or anywhere else in the Western District of Virginia.”
According to filings in the case, on May 20, 2012 at approximately 1:20 a.m., Bridges, and another juvenile, intentionally set fire to New Holy Deliverance Outreach Ministry, a church with a predominantly African American congregation, located in Axton, Va. In pleading guilty to this offense, Bridges admitted that he burned down New Holy Deliverance Outreach Ministry because of the race, color, and ethnic characteristics of its congregants.
At sentencing, the defendant faces a maximum possible penalty of up to 20 years in prison and/or a fine of up to $250,000.
The investigation of the case was conducted by the Henry County Department of Public Safety, the Henry County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Thomas Cullen, assisted by Trial Attorney Christopher Lomax of the Department of Justice’s Civil Rights Division, will prosecute the case for the United States.
Little Eagle Man Sentenced for Domestic Assault by Habitual OffenderRead the Press Release
US Attorney Brendan V. Johnson announced that a Little Eagle man convicted of Domestic Assault by Habitual Offender was sentenced on January 4, 2013, by US District Judge Charles B. Kornmann. Arthur Taken Alive, age 45, was sentenced to 18 months in custody, 4 years of supervised release, $1,987.04 in restitution, and a $100 special assessment.
Taken Alive was indicted for Assault Resulting in Serious Bodily Injury and Domestic Assault by Habitual Offender on August 22, 2011. He pled guilty to Domestic Assault by Habitual Offender on August 13, 2012.
The conviction arose from a May 2011 incident in which Taken Alive assaulted a male victim by striking the victim in the face with his fist. Prior to this incident, Taken Alive had been convicted, at least twice, in tribal court for domestic violence.
The investigation was conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant US Attorney Mikal Hanson prosecuted the case.
Taken Alive was remanded to the custody of the United States Marshal to begin serving his sentence.
Kaufman County Man Admits Using Identities of Deceased Persons to Claim Federal Income Tax RefundsRead the Press Release
DALLAS — Jason Cano appeared today in federal court in Dallas, before U.S. Magistrate Judge Renée Harris Toliver, and pleaded guilty to one count of filing false, fictitious and fraudulent claims against the U.S. and one count of aggravated identity theft, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Cano faces a maximum penalty of five years in federal prison on the fraudulent claims count. The aggravated identity theft count carries a mandatory penalty of two years in federal prison, which must be served consecutively to any sentence he receives on the false claims count. In addition, each count carries a possible fine of up to $250,000 and restitution could be ordered. Sentencing is set for May 10, 2013.
A criminal complaint was filed in January 2012 charging Cano with making false, fictitious or fraudulent claims, aggravated identity theft and wire fraud. In February 2012, a federal grand jury returned an 11-count indictment charging Cano with five counts of wire fraud, five counts of false, fictitious or fraudulent claims and one count of aggravated identity theft. He was arrested several months later, in September 2012, by special agents with Internal Revenue Service - Criminal Investigation (IRS-CI), in the Trenton, New Jersey area, and has been in federal custody since that time.
According to the factual resume filed in the case, beginning in 2008 and continuing through February 24, 2011, Cano prepared and filed at least 497 fraudulent federal income tax returns, claiming $883,427 in refunds, by using the names and social security numbers of deceased individuals. In fact, many of the identities were those of deceased 16-year-olds that the defendant had obtained from the Social Security death index, that was accessible through a number of public websites for a period of time.
The factual resume also states that Cano fabricated a Form W-2 for each return that contained a fictitious amount of paid wages and tax withholding, and those W-2 forms were purportedly issued by one of three employers, HI-LO Ozark Automotive, Labor Ready or Pappy’s Sand and Gravel. Cano filed most of these returns electronically using Turbo Tax and each return he filed requested that the refund be deposited into a reloadable prepaid debit card that Cano had acquired. After the refunds were loaded, Cano would use the cards for his own use and benefit, or provide them to friends and associates for their use.
In fact, according to the complaint filed in the case, the investigation into Cano’s activities began when IRS CI received information from a fraud compliance officer, at a company that issues stored value cards and prepaid debit cards, that an individual received three federal income tax refunds on one prepaid card. Generally, each tax payer is issued only one tax refund.
According to both the complaint and factual resume, on February 25, 2011, a federal search warrant was executed at Cano’s residence in Kemp, Texas, and IRS-CI agents seized dozens of documents containing the names, social security numbers, wages, employer information and direct deposit account numbers associated with the fraudulent returns he filed. The factual resume also states that a forensic exam of computers seized revealed that the Turbo Tax website had been accessed 1,876 times and the IRS website and bank-related websites had been accessed hundreds of times.
In September 2012, the Justice Department’s Tax Division issued a new directive to further the efforts of the Tax Division and U.S. Attorneys’ Offices to respond quickly and effectively to the challenges in stolen identity refund fraud (SIRF) cases. Additional information about the Tax Division and its enforcement efforts may be found at http://www.justice.gov/tax/
IRS-CI is in charge of the investigation; Assistant U.S. Attorney Chris Stokes is in charge of the prosecution.
Jury Convicts Kansas Man of Mortgage FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Leawood, Kan., man was convicted in federal court today of mortgage fraud.
Jon Nevins, 40, of Leawood, Kan., was found guilty of all four charges contained in a Feb. 1, 2012, federal indictment.
Nevins was found guilty of participating in a conspiracy to commit wire fraud and money laundering from June 12 to July 14, 2006. Nevins was a straw buyer in the conspiracy, which was part of a $657,768 mortgage fraud scheme in which Nevins and co-defendant Craig A. Chambers, 47, of Shawnee, Kan, submitted false documentation in support of a mortgage loan application for a residence in Overland Park, Kan. Chambers, a former Gladstone police officer, worked as a mortgage broker during the criminal conspiracy.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about three hours before returning the guilty verdicts to U.S. District Judge Dean Whipple, ending a trial that began Monday, Jan. 7, 2013.
In May or June of 2006, Chambers assisted a client with the sale of his residence in Overland Park. Although the client had been unsuccessful in selling the residence at the asking price of $592,000, Chambers told him he had a buyer – Nevins – who would purchase the residence for $649,000, based upon an inflated appraisal. The client would have to pay Nevins $75,000 after the sale closed, which he agreed to do.
On June 22, 2006, Chambers and Nevins executed a mortgage loan application in the amount of $649,000. On June 30, 2006, the sale of the residence closed at a title company in Gladstone, Mo. Nevins, acting as a buyer, signed the HUD-1, certifying that all loan proceeds were disbursed in accordance with the stated payouts in the HUD-1. However, the HUD-1 did not disclose the material fact that the seller would kick back $75,000 from the loan proceeds to Nevins. On June 30, 2006, the mortgage loan was funded through a bank wire in the amount of $657,768. On July 6, 2006, the property seller issued a check to Jon Nevins in the amount of $75,000 from the proceeds of the sale. On July 14, 2006, following the kickback of $75,000 to Nevins, Nevins gave Chambers a check for $14,500 out of the kickback funds.
Chambers pleaded guilty to his role in the conspiracy on Jan. 4, 2013 and awaits sentencing.
In addition to the conspiracy, Nevins was found guilty of one count of wire fraud and two counts of money laundering.
Under federal statutes, Nevins is subject to a sentence of up to 45 years in federal prison without parole, plus a fine up to $1 million. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney John E. Cowles. It was investigated by the U.S. Secret Service, the Federal Deposit Insurance Corporation-Office of Inspector General, IRS B Office of Inspector General and the Department of Housing and Urban Development B Office of Inspector General.
Judge Sentences Texas Man to 20 Years in Prison for Role in Cocaine Trafficking RingRead the Press Release
PITTSBURGH, Pa. - On Jan. 7, a resident of Houston, Texas, was sentenced in federal court to 240 months imprisonment followed by five years supervised release on his conviction of violating federal narcotics and money laundering laws, United States Attorney David J. Hickton announced today.
Senior United States District Judge Alan N. Bloch imposed the sentence on Vincent D. Middlebrooks, 40.
According to information presented to the court, from on or about Dec. 4, 2009, and continuing thereafter to on or about Sept. 29, 2011, in the Western District of Pennsylvania and elsewhere, Middlebrooks conspired with others to distribute and possess with intent to distribute five kilograms or more of cocaine. Additionally, during the same time period, Middlebrooks conspired with others to launder money.
Prior to imposing sentence, Judge Bloch stated that the sentence was based, in part, on the "enormous scope" of the drug trafficking conspiracy.
Assistant United States Attorneys Katherine A. King and Troy Rivetti prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) comprised of members drawn from the Drug Enforcement Administration, the Pennsylvania State Police, the Internal Revenue Service - Criminal Investigation Division, the Pennsylvania Office of Attorney General, and the Beaver Falls Police Department for the investigation leading to the successful prosecution of Middlebrooks.
Jal, N.M., Accountant Arraigned on Federal Fraud and Identity Theft ChargesRead the Press Release
ALBUQUERQUE – This morning, Roger L. Baeza, 31, of Jal, N.M., was arraigned on an 81-count indictment charging him with 78 counts of securities fraud, one count of access device fraud and two counts of aggravated identity theft. Baeza entered a not guilty plea to the indictment during his arraignment hearing.
U.S. Attorney Kenneth J. Gonzales said that Baeza is charged with defrauding two Jalbased businesses, Lea Energy Services, LLC, and Fulfer Oil & Cattle Company, LCC, of approximately $572,000 between June 2010 and Feb. 2012. During that period, Baeza was employed as the in-house accountant by the owners of the two businesses.
According to the indictment, from June 4, 2010 to Feb. 27, 2012, Baeza forged checks belonging to Lea Energy Services, LLC, and the Fulfer Oil & Cattle Company, LCC, on 78 separate occasions and thus defrauded his employers of an aggregate of $311,960.08. Count 79 of the indictment alleges that, during that same period, Baeza unlawfully used a credit card issued to his employers to defraud his employers of an aggregate of $189,267.02. Counts 80 and 81 each charge Baeza with unlawfully using the identification of one of his employers to unlawfully withdraw money from his employers’ business accounts.
The maximum penalty for a conviction on each of the 78 securities fraud counts and the access device fraud count is ten years of imprisonment and a $250,000 fine. The maximum penalty for a conviction on each of the two aggravated identity theft counts is a mandatory two-year term of imprisonment to be served consecutive to any other prison sentence imposed and a $250,000 fine.
Following his arrest on a criminal complaint on Nov. 6, 2012, Baeza is on conditions of release pending trial.
The case was investigated by the Roswell office of the FBI and the New Mexico State Police, and is being prosecuted by Assistant U.S. Attorney Norman Cairns.
Allegations in criminal complaints and indictments are only accusations. Criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
Indictment Alleges More Than $2 Million EmbezzledRead the Press Release
FORMER HENDERSONVILLE TITLE COMPANY OWNER INDICTED
FOR WIRE AND BANK FRAUDNASHVILLE, Tenn.– Garry Christopher Forsythe, 40, of Hendersonville, Tennessee, was indicted on January 3, 2013, by a federal grand jury and charged with six counts of wire fraud and three counts of bank fraud, arising from his alleged embezzlement of funds from the Forsythe Title escrow accounts, announced Jerry E. Martin, U.S. Attorney for the Middle District of Tennessee. Forsythe is the former owner and operator of Forsythe Title and Escrow Services, Inc., a real estate closing company and title insurance agent located in Hendersonville, Tennessee.
“This case represents another example of the U.S. Attorney’s Office and the Department of Justice’s ongoing commitment to prosecuting white-collar crime,” said United States Attorney Jerry E. Martin. “Citizens and businesses in the Middle District of Tennessee can be assured that this office, along with our many valued law enforcement partners, stand committed to rooting out and prosecuting such fraud.”
According to the indictment, between December 2000 and January 2008, Forsythe received money from buyers of real properties and from mortgage lenders financing the purchase of the properties for the purpose of closing real estate transactions. Forsythe Title acted as the settlement agent and the money received by Forsythe Title was supposed to be deposited into an escrow account and used to pay only the expenses of closing the particular real estate transaction. However, Forsythe transferred, or caused the funds from the Forsythe Title escrow accounts to be transferred to the Forsythe Title operating account. These funds exceeded the fee income that Forsythe Title legitimately earned from the real estate transactions and were used to cover the operating expenses of Forsythe Title and to pay compensation to Christopher Forsythe.
The indictment further alleges that Forsythe knew that the total funds in the escrow account were insufficient to cover the total amount of the checks that Forsythe Title was obligated to issue for the real estate transactions that the title company had agreed to close and that the escrow shortages would be concealed by future deposits which would cover previous transactions.
Finally, the indictment alleged that Forsythe failed to disclose to employees of Forsythe Title and to the parties involved in the transactions, that there was a shortage of funds in the Forsythe Title escrow account, and that checks issued to pay the expenses of closing the real estate transactions would be returned by the bank because the escrow account contained insufficient funds to cover all of the checks issued. According to the indictment, Forsythe’s scheme caused losses of approximately $2,249,294.80.
If convicted, Forsythe faces up to 30 years in prison and a $1million fine.
The case was investigated by agents with the IRS-Criminal Investigation and the FBI. The United States is represented by Assistant U.S. Attorney John K. Webb.
An indictment is merely an accusation and is not evidence of guilt. Defendants are presumed innocent unless and until proven guilty in a court of law.
Harford County Oxycodone Dealer Sentenced to over 10 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Ronnie Stocks, age 34, of Bel Air, Maryland, today to 126 months in prison, followed by three years of supervised release, for conspiracy to distribute and possession with intent to distribute oxycodone.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Harford County Sheriff L. Jesse Bane; and Harford County State’s Attorney Joseph I. Cassilly.
According to Stocks’ guilty plea, in 2010 and 2011, Stocks was obtaining oxycodone from approximately 12 sources and was distributing those pills, in amounts no less than $100 at a time, to about 36 individuals. During an investigation by the Harford County Drug Task Force, several of Stocks’ customers provided information about the number and frequency of purchases of oxycodone made from Stocks, where those purchases occurred and how many pills would be purchased at one time. A wiretap of Stocks’ cell phone in early 2011 captured Stocks conducting dozens of drug transactions. In April 2011, law enforcement also learned that Stocks sold a firearm. On April 14, 2011, Stocks was arrested and his home and vehicle were searched, recovering over 40 oxycodone pills.
United States Attorney Rod J. Rosenstein commended the FBI, Harford County Sheriff’s Office, Harford County State’s Attorney’s Office and all the members of the Harfod County Narcotics Task Force for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Mushtaq Gunja, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Guilty Verdicts Reinstated in Sex Trafficking CasesRead the Press Release
United States Attorney Brendan V. Johnson announced that the United States Eighth Circuit Court of Appeals has reinstated the convictions of two men previously acquitted of Commercial Sex Trafficking. The Court reinstated the convictions of Daron Jungers, age, 42, of Sioux City, Iowa, and Ronald Bonestroo, age 59, of Sioux Falls, and has ordered the district court to proceed with sentencing.
In February 2011, Jungers and Bonestroo were both charged in separate indictments with Commercial Sex Trafficking after answering on-line advertisements posted by undercover police officers. Jungers arranged to pay for sex with what he believed to be an 11-year-old girl in Sioux Falls and was arrested after he arrived at the undercover location. Bonestroo arranged to pay for sex with what he believed would be two 14-year-old girls in Sioux Falls and was arrested after he arrived at the undercover location. Homeland Security Investigations, along with the South Dakota Internet Crimes Against Children Task Force, conducted the on-line undercover operation, known as “Operation Crossing Guard,” to identify persons who attempt to purchase sex acts with children.
In October of 2011, Jungers was convicted by a federal jury in Sioux Falls and faced a minimum sentence of 15 years’ incarceration and a maximum of life imprisonment.
In November of 2011, Bonestroo was convicted by a federal jury in Sioux Falls and faced a minimum sentence of 10 years’ incarceration and a maximum of life imprisonment.
Two United States District Judges granted the men’s motions for judgment of acquittal after concluding the federal sex trafficking statute applied only to suppliers of commercial sex acts, not consumers. Jungers was acquitted in December 2011, and Bonestroo was acquitted in January 2012.
The January 7, 2013, reversal by the Eighth Circuit Court of Appeals marks the first holding on the issue by any federal court of appeals. It was determined that the statute does apply to both suppliers and consumers of commercial sex acts, and evidence in both cases showed the defendants were guilty of violating the statute.
"Sex trafficking of children is reprehensible, and whoever is involved in the process, whether it be the supplier or consumer, should be held accountable for their actions and prosecuted to the fullest extent of the law. The decision by the Eighth Circuit Court of Appeals confirms that. The decision provides my office additional tools to prosecute those who prey upon these victims of commercial sex trafficking,” said Johnson.
The cases were originally prosecuted by Assistant United States Attorney Jeff Clapper. Assistant United States Attorney Mark Salter wrote the United States’ appellate briefs, and United States Attorney Brendan Johnson argued the case on appeal.
Grants Pass Man Sentenced to 77 Months in Prison for Possessing FirearmRead the Press Release
MEDFORD, Ore. - On Monday, January 7, 2013, U.S. District Judge Owen M. Panner sentenced David Maurice Garrick, 43, of Grants Pass, Oregon, to 77 months in federal prison based on his previous guilty plea to being a felon in possession of a firearm.
On April 16, 2012, a Grants Pass, Oregon Police officer observed Garrick riding a bicycle. The officer recognized him from several prior contacts and was aware that Garrick had outstanding warrants for his arrest. Garrick attempted to elude the officer but crashed his bike and fled. The officer gave chase and apprehended Garrick at gunpoint, discovering a loaded .22 revolver concealed in defendant's overalls.
Over the last twenty-five years, Garrick has been convicted of numerous felonies in state court, including supplying contraband, Assault III, unauthorized use of a vehicle, first degree burglary, robbery in the third degree, possession of methamphetamine, and delivery of a controlled substance.
This case was investigated jointly by the Grants Pass Department of Public Safety and the Bureau of Alcohol, Tobacco, and Firearms, and was prosecuted by Assistant U.S. Attorney Douglas W. Fong.
Gila River Man Sentenced to More Than 15 Years for Second-degree MurderRead the Press Release
PHOENIX – On Jan. 7, 2013, Martin Oliver Pablo Sr., 22, of Sacaton, Ariz., and a member of the Gila River Indian Community, was sentenced by U.S. District Judge David G. Campbell to 189 months in prison. Pablo pleaded guilty on Oct. 2, 2012, to second-degree murder.
In April 2012, Pablo shot and killed a 19-year-old man at a family gathering following an argument. Pablo, who had been drinking, fired a single shot to the victim’s chest. The victim later died as a result.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Gila River Police Department. The prosecution was handled by Jennifer E. Green, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-12-811-PHX-DGC
RELEASE NUMBER: 2013-001_PabloFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Georgia Man Admits Interfering with Flight Crew During Flight from Atlanta to PittsburghRead the Press Release
PITTSBURGH, Pa. - A resident of Georgia pleaded guilty in federal court to a charge of violating federal laws, United States Attorney David J. Hickton announced today.
Marc Anthony Malone, 34, of Hogansville, GA, pleaded guilty to one count of interfering with a flight crew before United States District Senior Judge Gustave Diamond.
In connection with the guilty plea, the court was advised that on October 10, 2012, Malone was onboard an AirTran flight from Atlanta, Ga., to Pittsburgh, Pa. Approximately 30 minutes into the flight, Malone began acting erratically. At one point during the flight, Malone asked a flight crew member, "Where are we?" Upon hearing that the plane was on its way to Pittsburgh, Malone stated "I need to get off now," and attempted to get to the front of the aircraft. One of the flight attendants tried to calm Malone and asked him to sit in his seat, at which point, Malone continued to leave his seat, stating "Why are you mad at me?" Shortly thereafter, Malone attempted to force his way to the front of the plane, at which point two flight attendants physically stopped him, and Malone yelled "F- you!" over and over. As Malone refused to comply with commands to return to his seat, he attempted to get to the front of the plane by pushing a flight attendant with his hands, knocking the attendant backward. At that time two flight attendants and five passengers wrestled Malone to the ground to restrain him and place flex cuffs on him. While Malone kicked and attempted to bite those that attempted to restrain him, Malone yelled, "I'm going to get you! When I get out of here, I can't wait to get a hold of you!" As such, Malone had to be restrained by flight crew members for the duration of the plane's landing instead of being able to attend to their normal duties.
Judge Diamond scheduled sentencing for May 8, 2013 at 10:00 a.m. The law provides for a total maximum sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Pending sentencing, the court continued Malone on bond.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation (FBI) conducted the investigation that led to the prosecution of Malone.
Freddie Marshall Carson Sentenced to 46 Months in Prison for Wire Fraud and Money LaunderingRead the Press Release
KNOXVILLE, Tenn.- On Jan. 8, 2013, Freddie Marshall Carson, 45, formerly of Powell Tenn., was sentenced to serve 46 months in prison by the Honorable Tomas A. Varlan, Chief U.S. District Judge, as a result of his conviction on Aug. 1, 2012, of wire fraud and money laundering.
An investigation conducted by the Federal Bureau of Investigation (FBI) and the Internal Revenue Service (IRS) showed that from 2005 through 2011 Carson held himself out as a well to do business man, owner of Masterworks. He conducted his sham business out of a $2 million home he claimed to own but was merely renting. He perpetrated the scheme by ingratiating himself into religious communities and using the religious affiliations to lull members of the communities into investing or making loans to his company. Some victims were told they were investing in securities of Masterworks to be used in business activities. Neither Masterworks nor Carson were registered to sell securities. Other victims were presented an investment scheme under the guise of a short term loan with guaranteed high rates of returns. However, once the victims wired their money into the Masterworks account the money was immediately diverted by Carson for his own personal use, such as a $55,000.00 new Infiniti SUV. The scheme spread over multiple states with multiple victims. The amount of loss totaled over $1 million.
Agencies involved in the investigation included FBI and IRS. The United States was represented by Assistant U.S. Attorneys Jennifer Kolman.
Former Walla Walla County Undersheriff Sentenced to Prison for Embezzling over $67,000 in Public FundsRead the Press Release
Richland - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Carole J. Lepiane, age 58, of College Place, Washington, was sentenced for embezzling public funds while working as the Walla Walla County Undersheriff. Senior United States District Judge Fred Van Sickle sentenced Lepiane to a 6 month term of imprisonment. Upon release from custody, Lepiane will be under court supervision for 1 year, with a condition of supervision that she must reside at a residential re-entry center for 4 months. In addition, Judge Van Sickle ordered Lepiane to pay $81,271 in restitution.
Lepiane pleaded guilty on October 11, 2012 to one count of Theft From a Federally Funded Local Agency, in violation of 18 U.S.C. § 666(a)(1)(A). According to information disclosed during the court proceedings, Lepiane worked for Walla Walla County Sheriff's Office (WWCSO) for over 35 years. From 1998 to July 2009, she served as Undersheriff. Her responsibilities included overseeing deposits of funds into the WWCSO bank accounts, such as cash funds received as bail for jail inmates. Also, the WWCSO received checks, which represented the proceeds from jail inmates' use of the phone system. These funds were required to be deposited into an Inmate Welfare Fund, and used to improve conditions for inmates at the
Jail. From 2004 to June of 2009, Lepiane operated a check for cash swap. She stole some of the cash bail money that was taken in by the Jail. She then inserted a check from the phone proceeds for the amount of cash bail stolen to maintain the total amount of the original deposit and hide the theft. As a result, the checks for the phone proceeds were not contributed to the Inmate Welfare Fund. Using this scheme, Lepiane stole from the fund on at least 50 separate occasions, taking $67, 145 from Walla Walla County. She used the stolen funds to make numerous cash deposits into her personal bank account and also pay for personal online shopping purchases.As part of the agreed resolution of this case, at sentencing Lepiane paid restitution in the amount of $81,271 to Walla Walla County. The restitution represents the $67,145 in stolen funds and approximately $14,000 to reimburse Walla Walla County for the cost of conducting an audit.
Michael C. Ormsby United States, the Attorney for the Eastern District of Washington, said, "It is a privilege to serve in law enforcement. Individuals who abuse that role and betray the public's trust for their personal benefit will be aggressively investigated and prosecuted," Mr. Ormsby also cautioned the public not to let Lepiane's theft undermine their confidence in other dedicated public servants and the stellar work performed by the Walla Walla County Sheriff's Office. United States Attorney Ormsby also recognized the cooperative attitude of the Walla Walla County Sheriff's Office and the hard work conducted by the FBI, the Washington State Patrol, and the Washington State Auditor's Office.
"The vast majority of law enforcement officials are honorable public servants who perform their duties with the utmost integrity, and, sometimes, at great personal cost," said Special Agent-in-Charge Laura Laughlin of the FBI Seattle Division. "However, in those rare instances when these officials violate their duty to uphold the law and instead commit crimes themselves, the FBI will conduct a thorough, impartial investigation to preserve and restore public trust and confidence."
This investigation was conducted by the FBI and the Washington State Patrol, with assistance from the Washington State Auditor's Office. The case was prosecuted by Mary K. Dimke, an Assistant United States Attorney for the Eastern District of Washington.
CR-12-6054-FVS
Former President Pro Tem of Oklahoma Senate Sentenced to Serve Five Years' Probation for BriberyRead the Press Release
Oklahoma City, Oklahoma – Former Oklahoma Senate President Pro Tem MICHAEL STEVEN MORGAN, 57, of Stillwater, Oklahoma, was sentenced today by United States District Judge Robin J. Cauthron to serve five years’ probation for bribery, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
"While this was not the sentence for which we advocated, the determination of sentencing in federal court is within the discretion of the Judge,” said U.S. Attorney Coats. “This is one of the most significant public corruption cases in this district in decades. Both the U.S. Attorney’s Office and the FBI remain committed as ever to the pursuit of public corruption cases and holding accountable any public officials who abuse their positions for personal gain. I commend the Assistant United States Attorneys and FBI Special Agents for their extraordinary work in this long and complex investigation and prosecution."
The government alleged three different schemes. On March 5, 2012, the federal jury found Morgan guilty of bribery on one scheme, acquitted him on one scheme, and could not reach a unanimous verdict on a third scheme. According to evidence at trial on the scheme in which he was convicted, Morgan, an attorney, accepted payments from a business that owned assisted-living centers, disguised as legal fees, in exchange for favorable treatment in the legislature. Evidence at trial showed that Morgan took twelve $1,000 bribe payments in 2006 and 2007, disguised as legal fees, from Silver Oak Senior Living Center. Evidence showed that Silver Oak had been at odds with the Oklahoma Department of Health, which was attempting to impose regulations on assisted-living facilities. In exchange for the bribe payments, evidence showed that Morgan authored Senate Bill 738, which became law at the end of the 2007 session and helped Silver Oak by lifting some of its regulatory burdens.
In addition to serving five years of probation, Morgan was ordered to forfeit $12,000.
This case was the result of an investigation conducted by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorneys Scott E. Williams and Vicki Zemp Behenna.
Reference is made to court filings for further information.
Former Pennsville, N.J., Police Officer Pleads Guilty to Obstructing Child Pornography InvestigationRead the Press Release
CAMDEN, N.J. – A former Pennsville, N.J., police officer today admitted obstructing the FBI’s investigation of his alleged possession of child pornography, U.S. Attorney Paul J. Fishman announced.
Robert Waterman, 31, of Wrightstown, N.J., pleaded guilty today before U.S. District Judge Robert B. Kugler to an Indictment charging him with one count of obstruction of a federal investigation in connection with his destruction of a computer hard drive.
According to the Indictment and statements made in court:
Waterman was formerly a police officer with the Pennsville Police Department. On March 4, 2010, while he was still a member of that department, FBI special agents told Waterman that he was being investigated for alleged possession of child pornography. During the plea hearing, Waterman admitted that following this interview with the FBI, he located a hard drive in his garage and placed it in his patrol car. Waterman admitted that he then broke apart the hard drive’s green printed circuit board into small pieces while in his patrol car at the police department. Waterman admitted he did this to obstruct the FBI’s investigation.
The obstruction count to which Waterman pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000. Sentencing is scheduled sentencing for April 18, 2013. Waterman remains released on a personal recognizance bond of $100,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge John Brosnan in Philadelphia with the investigation leading to today’s guilty plea. Fishman also thanked the Salem County Prosecutor’s Office, under the direction of Prosecutor John T. Lenahan, and officers of the Pennsville Police Department, for their cooperation and assistance with the investigation.
The government is represented by Assistant U.S. Attorneys Matthew J. Skahill and Amy Luria of the U.S. Attorney’s Office Special Prosecutions Division.
13-015
Defense counsel: Maggie Moy Esq., Assistant Federal Public Defender, CamdenWaterman, Robert Indictment
Former MDC Corrections Officer Sentenced for Civil Rights ViolationsRead the Press Release
ALBUQUERQUE – Demetrio Juan Gonzales, 40, a former corrections officer at the Bernalillo County Metropolitan Detention Center (MDC) in Albuquerque, N.M., was sentenced today in federal court to 33 months in prison followed by three years of supervised released for violating the civil rights of an individual in his custody when he struck and choked the victim in the shower room/dress out area of MDC. Gonzales pleaded guilty in Oct. 2012.
According to court documents, during the early morning hours of Dec. 21, 2011, Gonzales was assigned to the Receiving-Discharge-Transfer (RDT) Unit at MDC where individuals are brought to be booked soon after they are arrested. Gonzales’ job was to photograph and fingerprint those who are brought to RDT for booking. The victim, who had been arrested for Driving While Intoxicated, was verbally uncooperative during the booking process, but was not a physical threat to anyone. Nonetheless, Gonzales became angry at the victim and walked him to the shower room/dress out area where he knew there were no surveillance cameras. Several other corrections officers followed Gonzales to the shower room/dress out area. There, Gonzales physically assaulted the victim, striking him multiple times, and choking him. As a result of Gonzales’ actions, the victim started bleeding. Gonzales acknowledged that the victim did not do anything to justify the beating, and as a corrections officer, he is not permitted to assault inmates just because they anger him.
“Corrections officers who abuse their authority to physically assault prisoners undermine the foundations of the rule of law and violate basic Constitutional guarantees that protect every person in America,” said Assistant Attorney General Thomas E. Perez of the Department of Justice’s Civil Rights Division. “The Department of Justice and the Civil Rights Division will continue to aggressively prosecute civil rights violations that occur in our jails and prisons.”
Fellow former MDC corrections officers Kevin Casaus, 24, and Matthew Pendley, 26, were indicted by a federal grand jury in June 2012, and are awaiting trial on charges related to this assault. Casaus is charged with violating the victim’s civil right rights when he allegedly shoved and struck the victim while in the shower area/dress out area. Casaus is further charged with obstruction of justice and falsification of records, first for making false statements to detectives of the Bernalillo County Sheriff’s Office (BCSO) and then for falsifying his incident report. Similarly, Matthew Pendley is also charged with obstruction of justice for making false statements to BCSO detectives, and also for tampering with evidence by cleaning up blood from the shower room/dress out area. Casaus and Pendley are presumed innocent unless proven guilty.
“We depend on the guards in our prison system not only to do an important job, but also to carry out their duties in a way that respects their positions of authority, the law and ultimately the population they supervise,” said Kenneth J. Gonzales, U.S. Attorney for the District of New Mexico. “Abuses of authority, under any circumstances, have no place in our prison system and will not be tolerated.”
“Our citizens have the right to expect their corrections officers to act legally and in accordance with the Constitution,” said Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI. “We hope today's sentencing serves as a reminder to all public servants that nobody is above the law. The Albuquerque FBI Division will continue to work with our law enforcement partners to vigorously investigate all allegations of civil rights violations. I want to thank the U.S. Attorney's Office and the Department of Justice Civil Rights Division for their support in this case. I also want to acknowledge the assistance given to the FBI by the Metropolitan Detention Center's executive management and internal affairs staff and the Bernalillo County Sheriff's Office.”
This case is being investigated by the Albuquerque Division of the FBI and is being prosecuted by Assistant U.S. Attorney Mark T. Baker for the District of New Mexico and Trial Attorney Fara Gold of the Civil Rights Division of the U.S. Department of Justice.
Former Franklin Resident Charged with Failing to Update His Sex Offender StatusRead the Press Release
ERIE, Pa. - A former resident of Franklin, Pa., has been indicted by a federal grand jury in Erie on a charge of failure to register under the Sex Offender Registration and Notification Act, United States Attorney David J. Hickton announced today.
The one-count indictment named Thomas K. Baker, 55, as the sole defendant.
According to the indictment presented to the court, Baker knowingly failed to update his registration as required by the Sex Offender Registration and Notification Act.
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, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The United States Marshal’s 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.
Former Bronx City Councilman, Larry Seabrook, Sentenced in Manhattan Federal Court to Five Years in Prison for Public Corruption CrimesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that former New York City Council Member LARRY SEABROOK, who represented the 12th Council District in the Bronx, was sentenced today in Manhattan federal court to five years in prison after being convicted on nine counts for public corruption crimes in a July 2012 jury trial. SEABROOK was sentenced by Federal District Judge Deborah A. Batts, who also presided over his trial.
Manhattan U.S. Attorney Preet Bharara stated: “Councilman Larry Seabrook sacrificed the public trust on the altar of greed. He was a flagrant and serial abuser of City Council discretionary funds in a far too familiar New York tale of corruption. Today’s sentence finally vindicates the interests of the constituents whose trust he so casually violated by his fraud. We remain committed to making those who are corrupted by power pay the price, and the public can expect more arrests of politicians who have not learned this lesson.”
According to the Indictment, other court documents, and the evidence presented at trial:
SEABROOK served as a member of the New York City Council (the “Council”) from January 2002 until his July 2012 conviction in this case. In that capacity, his official duties included: voting on legislation, representing and advocating for the interests of his constituents, and allocating New York City funds to non-profit organizations.
The Council Discretionary Funds Scheme
From 2002 through 2009, SEABROOK directed numerous city contracts valued at more than $2 million to purportedly independent non-profit organizations supposedly doing community-benefit work in the north Bronx. In fact, however, SEABROOK controlled these non-profit organizations, negotiating the leasing of their office space, creating their budgets, and making their personnel decisions.
The non-profit organizations SEABROOK controlled were funded exclusively by funds allocated by the Council, primarily at the direction of SEABROOK. Hundreds of thousands of dollars in Council funds received by the non-profit organizations were disbursed among SEABROOK’s girlfriend, brother, two sisters, and nephew.
SEABROOK knew these non-profit organizations were not doing enough legitimate work to justify the funds they were receiving from the Council, so to continue the City’s disbursement of funds, SEABROOK and others made misrepresentations to the City and to the Council. Specifically, they failed to disclose that the non-profit organizations were associated with SEABROOK, that the organizations lacked the ability to perform the contracts being awarded to them, and that the funds allocated to the organizations would benefit SEABROOK’s friends and family. SEABROOK and others also made false and inflated claims to the City and to the Council about the expenses that the non-profit organizations were incurring.
Furthermore, rather than leasing space directly from the landlords of the properties they used, SEABROOK arranged for his non-profit organizations to enter into fraudulent and inflated subleases with another organization he controlled (called the African-American Bronx Unity Day Parade, or the “Unity Day Parade”) which in turn leased the space directly from the actual landlords. Each year, three of SEABROOK’s non-profit organizations paid the Unity Day Parade a substantially greater amount than the rent paid to the actual landlord. In connection with this rent scheme alone, SEABROOK and his co-conspirators defrauded the City of more than $95,000.
The FDNY Diversity Program Scheme
In the summer of 2005, in an effort to increase diversity in the ranks of the New York City Fire Department (the “FDNY”), the Council allocated approximately $1.5 million to, among other things, recruit and train minorities to pass the firefighter examination.
In 2006, SEABROOK recommended to the Council that one of the non-profit organizations he controlled, the North East Bronx Redevelopment Corporation (“NEBRC”), receive approximately $300,000 of funds that the Council had allocated to the FDNY diversity initiative through John Jay College of Criminal Justice (the “College”). The Council allocated $750,000 to the College, and directed the College to subcontract with NEBRC in the amount of $300,000.
SEABROOK made these recommendations even though he knew that the New York Department of Small Business Services (the “NYDSBS”) had audited NEBRC’s contracts to receive Council discretionary funding and found widespread financial mismanagement and accounting improprieties, as well as a failure to achieve the performance goals set by those contracts. Furthermore, SEABROOK and others did not disclose to the Council that the NYDSBS had identified serious problems at NEBRC, that the non-profit was under investigation by the City’s Department of Investigation, or that the funds allocated to NEBRC would benefit individuals close to SEABROOK. Although NEBRC conducted some limited recruitment activity in connection with the FDNY diversity initiative, it did not provide any of the mentoring, training, or physical conditioning that it had represented it would provide. In fact, the Council funds that NEBRC received for the FDNY diversity initiative were disbursed to, among others, SEABROOK’s girlfriend; SEABROOK’s sister, who served as a “consultant” for the initiative and was paid $10,000 to write a six-page report; and SEABROOK’s nephew.
The “Jobs To Build On Program” Scheme
In 2007, the Council allocated millions of dollars to the Jobs To Build On Program (“JTBO”), a job training and employment initiative spearheaded by SEABROOK and others. The Consortium for Worker Education (the “CWE”) was eventually charged with the responsibility of administering JTBO funds.
The CWE sought to identify community-based organizations with which it could partner to more effectively provide employment and training services throughout the City in connection with the JTBO initiative. SEABROOK recommended that the CWE partner with NEBRC, falsely representing that it was an entity with which the CWE could contract to effectively provide recruitment for employment and training services. The CWE entered into a $350,000 contract with NEBRC.
On a number of occasions when a program coordinator for the CWE made an unannounced visit to NEBRC’s office, the office was closed. The CWE also found that NEBRC grossly underperformed the services it was obligated to provide under the contract and provided inadequate or false documentation in support of the services it was allegedly providing and the expenses it was incurring pursuant to its contract. Again, the Council funds that NEBRC received for the JTBO initiative were disbursed to, among others, SEABROOK’s girlfriend and SEABROOK’s nephew.
In addition to his prison term, SEABROOK, 61, of the Bronx, New York, was sentenced to two years of supervised release, and was ordered to pay $619, 715.24 in restitution and to forfeit $418, 252.53, to be returned to the City as part of the restitution. He was also ordered to pay a $100 special assessment fee.
In sentencing SEABROOK, Judge Batts remarked: “[Seabrook] held himself above the law, and betrayed the public trust.”
Mr. Bharara praised the work of the New York City Department of Investigation in this case.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant United States Attorneys Karl Metzner, Randall Jackson, and Steve Lee are in charge of the prosecution.
Former Bernalillo County, New Mexico, Corrections Officer Sentenced for Civil Rights ViolationsRead the Press Release
Demetrio Juan Gonzales, 40, a former corrections officer at the Bernalillo County Metropolitan Detention Center (MDC) in Albuquerque, N.M., was sentenced today in federal court to 33 months in prison followed by three years of supervised released for violating the civil rights of an individual in his custody when he struck and choked the victim in the shower room/dress out area of MDC. Gonzales pleaded guilty in October 2012.
According to court documents, during the early morning hours of Dec. 21, 2011, Gonzales was assigned to the Receiving-Discharge-Transfer (RDT) Unit at MDC where individuals are brought to be booked soon after they are arrested. Gonzales’ job was to photograph and fingerprint those who are brought to RDT for booking. The victim, who had been arrested for driving while intoxicated, was verbally uncooperative during the booking process, but was not a physical threat to anyone. Nonetheless, Gonzales became angry at the victim and walked him to the shower room/dress out area where he knew there were no surveillance cameras. Several other corrections officers followed Gonzales to the shower room/dress out area. There, Gonzales physically assaulted the victim, striking him multiple times, and choking him. As a result of Gonzales’ actions, the victim started bleeding. Gonzales acknowledged that the victim did nothing to justify the beating, and as a corrections officer, he was not permitted to assault inmates just because they angered him.
“Corrections officers who abuse their authority by physically assaulting prisoners undermine the foundations of the rule of law and violate basic constitutional guarantees that protect every person in America,” said Assistant Attorney General Thomas E. Perez of the Department of Justice’s Civil Rights Division. “The Department of Justice and the Civil Rights Division will continue to aggressively prosecute civil rights violations that occur in our jails and prisons.”
“We depend on the guards in our prison system not only to do an important job, but also to carry out their duties in a way that respects their positions of authority, the law and ultimately the population they supervise,” said Kenneth J. Gonzales, U.S. Attorney for the District of New Mexico. “Abuses of authority, under any circumstances, have no place in our prison system and will not be tolerated.”
“Our citizens have the right to expect their corrections officers to act legally and in accordance with the Constitution,” said Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI. “We hope today's sentencing serves as a reminder to all public servants that nobody is above the law. The Albuquerque FBI Division will continue to work with our law enforcement partners to vigorously investigate all allegations of civil rights violations. I want to thank the U.S. Attorney's Office and the Department of Justice Civil Rights Division for their support in this case. I also want to acknowledge the assistance given to the FBI by the Metropolitan Detention Center's executive management and internal affairs staff and the Bernalillo County Sheriff's Office.”
Fellow former MDC corrections officers Kevin Casaus, 24, and Matthew Pendley, 26, were indicted by a federal grand jury in June 2012, and are awaiting trial on charges related to this assault. Casaus is charged with violating the victim’s civil right rights when he allegedly shoved and struck the victim while in the shower area/dress out area. Casaus is further charged with obstruction of justice and falsification of records, first for making false statements to detectives of the Bernalillo County Sheriff’s Office (BCSO) and then for falsifying his incident report. Similarly, Matthew Pendley is also charged with obstruction of justice for making false statements to BCSO detectives, and also for tampering with evidence by cleaning up blood from the shower room/dress out area. Casaus and Pendley are presumed innocent unless proven guilty.
This case is being investigated by the Albuquerque Division of the FBI and is being prosecuted by Assistant U.S. Attorney Mark T. Baker for the District of New Mexico and Trial Attorney Fara Gold of the Civil Rights Division of the U.S. Department of Justice.
Five California Residents Indicted for Conspiracy to Bring Cocaine to Cleveland AreaRead the Press Release
Five California residents were charged in a three-count federal indictment filed in Cleveland related to a conspiracy to bring multiple kilograms of cocaine to the Cleveland area, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
In Count 1, Jesse Owen Ray, age 28, of Los Angeles; Peter Howard, age 53, of Compton, California; Tonya Johnson, age 42, of Los Angeles; Harold Pugh, age 66, of Los Angeles; and Will McCraw, age 67, of Compton, California, were charged with conspiracy to possess with the intent to distribute approximately four kilograms of cocaine.
In Count 2, Johnson was charged with possession with the intent to distribute two kilograms of cocaine.
In Count 3, Ray and Howard were charged with possession with the intent to distribute two kilograms of cocaine.
This indictment is based on the investigation by the Federal Bureau of Investigation, Immigration and Customs Enforcement of Homeland Security, High Intensity Drug Trafficking Area Task Force, Cuyahoga County Sheriff’s Office, and Lakewood Police Department into drug trafficking activities occurring in the Greater Cleveland area and elsewhere.
This case is being prosecuted by Assistant United States Attorneys Teresa L. Dirksen and Matthew Shepherd.
If convicted, the defendants' sentences will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal records, if any, their role in the offenses and the unique characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Federal Inmate Pleads Guilty in Pennsylvania <br /> to Premeditated Prison MurderRead the Press Release
WASHINGTON – A federal inmate formerly held in Pennsylvania's Allenwood Federal Correctional Complex pleaded guilty today in Harrisburg, Pa., before U.S. District Judge Yvette Kane, to first degree murder for stabbing and kicking a fellow inmate to death.
Assistant Attorney General Lanny A. Breuer of the Justice Department's Criminal Division and U.S. Attorney for the Middle District of Pennsylvania Peter J. Smith announced the plea, entered today by Shawn Cooya, 33, formerly of White River, Ariz.
According to documents filed in this case and Cooya's admissions in court, in September 2005, Cooya, allegedly along with co-defendant Ritz Williams – another inmate at Allenwood in White Deer, Pa. – aided each other in the premeditated murder of inmate Alvin Allery by repeatedly stabbing him with a homemade knife and repeatedly kicking him in the head and torso.
Cooya and Williams were indicted by a federal grand jury in Williamsport in February 2008 and a superseding indictment was returned in July 2009.
As a result of his plea, Cooya faces a mandatory sentence of life in prison. Sentencing has been scheduled for March 18, 2013.
A trial date for Williams has been scheduled for April 15, 2013. He is considered innocent unless and until proven guilty.
The case was investigated by the FBI, Williamsport, Pa., Resident Agency and the Federal Bureau of Prisons. The case is being prosecuted by Assistant U.S. Attorneys Wayne Samuelson and Michelle Olshefski of the Middle District of Pennsylvania and Michael Warbel of the Criminal Division's Capital Case Unit.